MINNEAPOLIS - Honeywell announced that the U.S. Postal Service in Southern California has awarded the company $20.6 million in contracts for building and energy-retrofit improvements, as well as the development of a cogeneration system. The projects began in late December and are expected to be complete in approximately 12 months.

"Honeywell services enable us to work more efficiently while saving millions of dollars in energy costs," said Ray Levinson, manager of environmental compliance for the U.S. Postal Service Pacific Area. "This is important not only from an operating cost perspective, but also because it will reduce demand on the energy grid in California. Our shared energy savings contract is an effective way to control escalating utility costs and upgrade the facilities."

The new contracts, combined with $18 million of similar work awarded in 2003, are expected to deliver $4.1 million in energy savings per year. They are also projected to enable the Postal Service to reduce annual energy consumption by almost 30 million kWh - enough energy to power almost 4,000 homes for a year. The savings achieved through improved energy and operating efficiency will self-fund the projects, which means that facility upgrades and the cogeneration system will be installed at virtually no cost to the Postal Service.