CMS Energy Awarded University Contract

March 1, 2002
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OVERLAND PARK, KS — CMS Viron Energy Services, CMS Energy Corp.’s energy performance contracting unit, has been awarded the first energy contract from a State of Oklahoma educational institution. Under the contract, the University of Science and Arts of Oklahoma became the first college in the state to take advantage of energy performance contracting. Valued at $3.4 million, the contract will allow the university to save and reduce costs while upgrading the campus infrastructure by replacing old and inefficient equipment.

CMS Viron will replace the university’s chilled water plant and install a new boiler, energy-efficient lighting, a campus-wide energy management system, and water conservation retrofits. According to the company, the energy savings from the upgrades will pay for the improvements.

“This agreement with CMS Viron guarantees the university will slash its energy bills by one-third, or $298,000 per year, or CMS Viron will start paying the difference,” said John Feaver, University of Science and Arts of Oklahoma president. “It’s remarkable. This agreement is unique for Oklahoma colleges and is a significant milestone for education in Oklahoma.”

The university currently spends more than $350,000 on natural gas and electricity, plus $66,000 in water and sewer services annually. According to CMS Viron, the performance contract will shave 31% off those utility costs, reducing natural gas consumption by nearly 50% to an estimated $193,000. The company also predicts that the university electric bills may be cut by 15% or $48,000 annually and water use may be cut by $5,000.

Publication date: 03/04/2002

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