Presentation by Steven Weisman, Vice President, Peregrine Energy Group. "What are the local factors that make an ESCO performance contract a good fit for your community?"

1. Is a performance contract
right for your community?
November 15, 2012
Steven Weisman

2. Is performance contracting a fit for you?
Performance contracting is an effective tool for
infrastructure modernization.
Considerations:
• Condition of your energy infrastructure
• Available energy efficiency potential
• Green Community aspirations
• In-house technical capacity and capabilities
• Likelihood of other capital improvement funding

3. Condition of energy infrastructure
Is your community reluctant to invest funds in
infrastructure renewal?
• Are systems old, inefficient, poorly performing?
• Is equipment technology out-of-date?
• Has there been a noticeable increase in
equipment repair expense?
• Is the tendency to run equipment until it fails?
• Are there other more pressing capital needs?

4. Available energy efficiency potential
Is significant energy efficiency improvement possible?
• Has your community recently been a broad
participant in utility EE programs?
• Are many or most buildings newer construction?
• Is equipment well-maintained?
• Are there direct digital building control systems?
• Do you aggressively manage building scheduling
and temperature setbacks?

5. Green Community aspirations
Do you need to implement a 20% energy reduction?
• Are you seeking GC designation, but unclear
where to find the required 20% reduction?
• Do you have GC designation, but cannot figure
out how to move your ERP forward?
• Are you concerned that Ch. 149 governed
improvements will take longer than five years?

6. In-house technical capacity
Does your Community have the staff resources and
knowledge base to do these projects itself?
• Can you afford to go through multiple Ch. 149
procurements in multiple buildings?
• Do you have the engineering expertise and
technology understanding to ensure success?
• Who will provide construction oversight?
• Are you prepared to guarantee that projects will
be properly commissioned and fully functional?

7. Availability of project funding
Is the Community willing to use its financing, taxation,
and budgeting powers to support projects?
• Is the community’s financial rating good enough?
• How much additional debt can the community
take on?
• Will the community approve tax rate increases to
fund energy projects?
• Will the community level-fund utility budgets to
cover PC debt service for up to 20 years?

8. Is performance contracting right for us?
• A PC is a good strategy for accelerating energy
infrastructure renewal
• Energy infrastructure projects must be paired with
energy efficiency projects to fund the PC
• A community must be willing and able to incur debt
to finance the PC
• Staff participation as well as expert support will be
needed to ensure the success of the PC