Energy Savings Performance Contracting (ESPC) is a new concept for Montgomery County Government. The County engages a Contractor to examine a building or group of buildings seeking improvements that can be implemented to reduce energy usage.
Performance Contracting enables aging facilities to upgrade their equipment with no upfront costs, using the generated savings to pay for the project. Additionally, this program increases cash flow, reduces deferred maintenance and decreases exposure to ambiguous utility charges. This approach essentially eliminates any performance risk to the County, providing guaranteed operational and energy savings.
These projects provide the County with a mechanism to implement major building upgrades at essentially no cost. An added benefit is that outdated and obsolete equipment is replaced by the project without requiring Capital or operating expenditures.
Montgomery County has entered into Contracts with 3 Energy Savings Performance Contractors:
Initial projects are being kicked off with each Contractor.
The project upgrades a number of systems to effect a projected annual energy and operational savings in excess of $200,000.00. The capital cost of the project is $4,091,951.00. Project cost is fully recouped by savings in a 20 year payback period, including costs of debt service. Johnson Controls, Inc. (JCI) was selected as Montgomery County's partner for implementation of this pilot Energy Savings Performance Contracting project. JCI is providing analysis, design, construction and monitoring and verification services in support of the project.