Energy Performance Contracts Help Johnson Controls Customers Earn Awards
Energy performance contracts are expected to become more common throughout Michigan, the result of a new law that provides local governments with flexible financing plans to conserve energy. Under the law, which went into effect Aug. 17, local governments—which include cities, counties, townships and village councils, and governing bodies—can enter into a financing arrangement known as Tax-Exempt Lease Purchase (TELP). TELPs are not considered debt for local governments, making energy performance contracts more effective.
Dedicated in 1999, West Branch Regional Medical Center is an 88-bed acute care facility that includes four operating suites and a coronary/intensive care unit. The facility recently partnered with Johnson Controls to enact a number of facility improvement measures to take advantage of energy cost reduction opportunities, address numerous infrastructure deferred maintenance projects and maximize available utility rebate money. The $1,588,512 project produced $180,144 in annual guaranteed energy and operational savings, a $55,432 utility rebate and reductions of 31.7 percent, 16.8 percent and 16.3 percent in natural gas, electric and water utility costs, respectively.
Founded in 1962, Washtenaw Intermediate School District (WISD) serves Washtenaw County in mid-Michigan. To achieve energy efficiency goals, the district entered into an energy performance contract with Johnson Controls that has resulted in energy savings of $88,296, exceeding guaranteed cost savings by more than $9,000. The $536,785 project also reduced CO2 emissions by 595 tons and saved the district 539,999 gallons of water a year.
