Colorado is in the middle of a surge of energy performance
contracts, with many in the works and more just around the corner. The contracts
allow building improvements to be financed through the energy savings that come
from the upgrades.
“While funds for capital construction grow scarce, performance contracting
offers a huge, untapped source of funds. Millions of dollars otherwise paid to
utility companies over the next decade can, instead, be invested in
energy-saving improvements,” says Linda Smith, Colorado state representative
for Rebuild America and an official of the Governor’s Office of Energy
Management and Conservation.
The motivation for state facilities is a budget squeeze – the driver for
performance contracts in many states, towns and counties. Colorado currently has
no money for capital construction and renovations of state facilities, other
than for emergency needs. Because performance contracts are self-financing, they
provide off-budget improvements.
Ten new performance contracts are in the works in Colorado, and most have passed
the stage of selecting energy service companies and are either negotiating
contract details or going through the energy audit stage. These are worth about
$18 million, as a very rough estimate.
“The total scope isn’t really known until they finish the audits,” Smith
says.
The ten are for:
· State Capitol Complex
Facilities in Denver;
· State Department of Human
Services;
· Colorado State University at
Fort Collins;
· University of Colorado at
Boulder Department of Housing;
· University of Northern
Colorado at Greeley;
· University of Colorado at
Colorado Springs;
· University of Colorado at
Denver;
· Lewis-Palmer School District;
· Academy 20 School District;
· Fort Morgan School District.
Most include water as well as energy usage in the upgrade plans. Most are likely
to use the full 12 years permitted under state law for performance contracting.
The most high-profile project, roughly estimated at $1.5 million, may be the
upgrade for the state capitol building and the complex of state office buildings
surrounding it in Denver.
About a dozen energy service contractors are able to compete for performance
contracts in Colorado, giving the state and local governments a healthy
competitive marketplace.
And although they can’t be discussed yet, there are a lot of potential
projects in the works.
The ten new projects follow on the heels of 26 other Rebuild
Colorado projects where performance contracts are already delivering energy
savings after an energy investment of $26 million in state and local government
facilities – the buildings of school districts large and small, rural
counties, state colleges and other government operations.
“There’s just a lot of new momentum now in performance contracting,” Smith
says.
For more information contact Linda Smith, Rebuild Colorado, 303-894-2383 x 1203.