2012 Critical Issues Summit Energy Panel, Part II

Alwyn A. JohnEnergy Management Coordinator

TST BOCES

AgendaPart I - The Basics of Energy

Management – What You Need to Know

Part II - Making Energy Performance Contracting Work for your District

Part III - Grab Long Term Benefits from your Capital Projects

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Johnson City Central Schools

&

TRANE

10 Year EPC relationship

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Making the Case to your BOEWhy should a school district consider an Energy

Performance Contract? Fiscally responsible

Budget Control – hedge against unpredictable future energy cost volatility Address aging infrastructure and deferred maintenance items

Tackles priority needs identified in Building Condition Surveys Preservation of community assets

Improves student learning/teaching environment

How does EPC impact the budget? Typically reduces district energy 20-30% Attracts Utility & NYSERDA incentive revenues Can create building aid revenue stream Budget neutral (or better)

Uses future energy savings to address needs today

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Financial Impact (Example)Total Program Cost: Debt service over 15 year term: $2,063,415

Associated Revenue Streams:Energy savings over 15 year term: $2,154,128Estimated Building Aid: $1,444,391Estimated Incentives (one time revenue): $107,000

Net Program Benefit: Budget relief over 15 year program term $1,642,104

Note: Given current budget constraints, districts may be able to leverage EPC to help fund additional infrastructure improvements with no local tax impact.

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How can an EPC “bridge-the-gap” for a district?

What are the keys to a successful long-term relationship between a District and an EPC contractor?

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