US city approves $28m energy savings performance contract


According to a local publication, the Marquette City Commission approved $28 million energy savings performance contract with Johnson Controls.

The programme will be funded with $28 million loan secured from the Bank of America for the replacement of existing water and energy infrastructure with energy efficient models within two years.

The project is expected to save the city $42 million in operational costs over a period of 20 years through reduction in energy and water bills and infrastructure maintenance costs.

Under the programme, some 3,300 smart water meters using advanced metering infrastructure technology will be installed to help the city to accurately bill its consumers, reduce non-revenue water through quick detection of leaks and improve management of water distribution infrastructure.

Some LED bulbs will be installed at 22 traffic intersections, 2,500 streetlights and 125 bike lights. Energy efficient lighting and HVAC systems will also be installed to improve energy efficiency in city buildings.

Eric Stemen, the Superintendent of Facilities at Marquette city council, commented: “This project is going to help improve city infrastructure and services, by being a leader in sustainability using dollars that we’re already going to be spending anyways, whether that be on energy or operations.

“And in the end, it’s all financed through this TELP, which is a tax-exempt lease program, … which helps with our bonding capacity.”

Tom Baldini, the mayor of Marquette city, added: “If the savings is not realized like they suggest it should be, and it’s not our fault, they then pick up the difference, and I like that.

“But they have a very good record of assessing what needs to be done, what can be done and how much we can save.”

Energy savings performance contract

Meanwhile, in the US state of Texas, the city of Raymondville signed an energy savings performance contract which is expected to result in water efficiency savings of up to $4 million.

Under the energy savings performance contract, Raymondville will as from September through to December have its water distribution infrastructure upgraded with an advanced metering system. Read more…


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