CT Valley Hospital Getting Complete Energy Efficiency Makeover With Guaranteed Savings on Energy Bills to Pay Finance Costs
At a ceremony at CVH, the Commissioners of three state agencies – the Department of Mental Health and Addiction Services (DMHAS), which operates the campus; the Department of Energy and Environmental Protection (DEEP), which is spearheading an initiative to reduce energy use at state facilities; and the Department of Administrative Services (DAS), which oversees state buildings – celebrated the start of work on the 30-month construction project which has guaranteed savings of $31.9 million over the 15-year performance period.
Energy Savings Performance Contracts – Paying for Projects Through Cost Savings
The project at CVH is the first of several planned at state facilities using an Energy Savings Performance Contract (ESPC). This contracting approach enables agencies to use future energy savings to finance upgrades to aging facilities and replace inefficient and failing equipment – reducing operating costs.
Use of such a contract repurposes dollars that would otherwise be spent on wasted energy and instead uses the money on deferred maintenance improvements that conserve energy resources and reduce air pollutants and harmful greenhouse gas emissions – while lowering the ongoing operations and maintenance costs.
The CVH work includes replacement of a failing underground steam pipe, upgraded high efficiency LED lighting, a cogeneration plant that will convert discarded heat from electricity generation into useable steam and electricity, a solar-powered electric vehicle charging station, and many other upgrades to address systems that are beyond their useful life and failing.
The investments in upgrades in heating, cooling, lighting, and power will continue to produce energy cost savings after the project’s 15-year payback period ends.
The work will be completed and guaranteed by NORESCO, a United Technologies company.
“Energy efficiency is an investment that makes sense on so many levels,” said DEEP Commissioner Robert Klee. “It not only pays for itself and reduces harmful emissions, but it is also an investment in jobs and supports the development of cutting edge energy technology, an economic driver that has unlimited potential in Connecticut.”
“This financing mechanism of an energy savings performance contract enables state agencies to invest in energy savings and realize a guaranteed return on that investment,” said Commissioner Klee.
“The performance contracting process is a great example of multiple state agencies working together to cost-effectively improve state government infrastructure,” said DAS Commissioner Melody Currey. “We plan to put this common-sense and money saving approach to use in upgrading other state facilities in the near future.”
The energy savings performance contracting program is managed by the State Department of Energy and Environmental Protection, in collaboration with the Office of the Treasurer, Department of Administrative Services, Office of Policy and Management, Attorney General’s Office, and the Connecticut Green Bank. Eversource Energy and the EnergizeCT initiative have also provided support to the project.
Connecticut Valley Hospital (CVH) in Middletown is situated on over 100 acres and includes buildings that are designated on the National Register of Historic Places. In addition to patient care buildings, the campus contains many smaller cottages used for programming and administrative offices, a power plant, reservoirs that supply water to the campus and a water treatment facility. There are a total of 29 inpatient units and a transitional residential cottage with the capacity to serve 615 patients on two campuses in Middletown and Hartford.
As one of the largest energy service companies in the United States, NORESCO uses design/build, performance-based contracting vehicles and asset monetization solutions to deliver energy and maintenance savings and significant infrastructure upgrades to existing facilities.
Energize Connecticut helps residents and businesses save money and use clean energy. It is an initiative of the Energy Efficiency Fund, the Connecticut Green Bank, the Connecticut Department of Energy and Environmental Protection, and Connecticut’s local electric and gas utilities. To learn more, visit EnergizeCT.com.