Energy services contract to cover 1,800 hospitals

April 20, 2000
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HOUSTON, TX — Sempra Energy Solutions (SES), a major energy-service contracting firm, announced that it has signed a three-year contract to offer energy-efficiency services to facilities associated with Premier Inc., San Diego, CA, a purchasing alliance serving 1,800 non-profit hospitals and health care systems.

Under the contract, members of Premier will receive prenegotiated rates on a variety of energy-efficiency services, including replacement of aging equipment with new, energy-efficient models, and various funding options, including off-balance-sheet financing.

The contract, which is estimated to be worth as much as $85 million over the next three years, covers the replacement of existing equipment, including lighting, heating and air conditioning equipment, refrigeration systems, control equipment, and monitoring devices for gas and water systems, as well as load management.

“Today, health care organizations are under increasing pressure to reduce costs,” said Doug Collins of Premier Energy Services. “With contracts like these, our members can maintain and upgrade their facilities while saving money at the same time — and their patients are the ultimate beneficiaries.”

“The Balanced Budget Act is causing hospitals to search for creative ways to cut costs and maintain their facilities,” said B.N. (Trip) Tripathi, senior vice president of SES. “Our performance-based contracts give hospitals and health care organizations a proven methodology to do both at the same time.”

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