South / Regional Reports

NORESCO Increases Performance Contract With Alabama Department of Corrections

WESTBOROUGH, Mass. — NORESCO announced that it has increased its energy savings performance contract with the Alabama Department of Corrections (ADOC) to include two new phases of work totaling an additional $22.4 million investment. NORESCO specializes in the development, design, construction, financing, and operation of energy and environmental efficiency projects, and is a unit of Carrier Corp.

Energy conservation measures at ADOC facilities in Phases 2 and 3 of the project are funded by excess guaranteed savings from the original phase of work and incremental guaranteed savings over the life of the 20-year contract.

Phase 2 improvements include HVAC upgrades, new domestic hot water systems, and new roofs at selected locations. Phase 3 centers on improvements to buildings on the Wetumpka campus that ADOC previously acquired from the Alabama Board of Pardons and Parole, which will serve as a minimum security facility for women. The Phase 3 project will decentralize heating and cooling systems, improve water conservation, and upgrade lighting.

The projects broaden ADOC’s initiative to address deferred maintenance problems created by limited capital improvement budgets, inefficient buildings, outdated systems, and worn out equipment, and limited staff resources to manage and maintain facilities and equipment. Because energy savings performance contracts are structured to pay for themselves with guaranteed savings from energy reductions, ADOC can make needed repairs and improvements without additional funds from Alabama taxpayers.

The original $27.2 million contract between ADOC and NORESCO included more than $11 million in funding from the American Recovery and Reinvestment Act of 2009 (ARRA) through the Alabama Department of Economic and Community Affairs. Key energy conservation measures included central plant upgrades, mechanical upgrades, lighting upgrades, and water conservation improvements.

“When the original contract was signed in 2010, ADOC and NORESCO were already at work to identify the best way to deploy the additional guaranteed savings that would result from the contract. With Phases 2 and 3, ADOC invests the balance of project savings to improve building and systems even more,” said Chuck Hoppe, senior account executive, NORESCO.

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Publication date: 09/26/2011

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