By Steve Gilliam , University Relations
Contact: (336) 334-5371
Posted 3-27-07
Signing the ESCO document; (from left) Reade Taylor, Don Brady, Chancellor Patricia A. Sullivan and Dave Lumpkin.
GREENSBORO, NC–UNCG expects to save nearly $8 million in its utility bills over the next 12 years through a new energy service company (ESCO) contract with Trane Comfort Solutions Inc.
Through the contract, UNCG will get energy related renovations for five campus buildings, and the resulting savings will reduce energy consumption to the point that the savings will pay for the upgrades.
UNCG is the first campus in the UNC system to try the process, which is called “performance contracting.” While it has been used for a number of years for public school and community college buildings, the process was only approved in 2003 for state-owned buildings.
Buildings to get the upgrade are the Mossman Administration Building, Bryan School of Business and Economics Building, Jackson Library, Graham Building and the McIver cold-water chiller plant. The largest part of the changes will involve heating-ventilation-air conditioning and electrical, although some other improvements will be needed, as well.
Reade Taylor, UNCG vice chancellor for business affairs, explained that the energy savings project is guaranteed to reduce utility bills by $7.9 million over the next 12 years. While the savings will be used to repay the money borrowed to pay for the improvements, he said UNCG will be able to reduce emissions used to generate UNCG's electricity and heat by over 5,000 tons per year and save over four million gallons of water per year.
“Not only does this fit nicely with UNCG's sustainability efforts, but it will also save North Carolina taxpayers over $750,000 per year when the debt is fully repaid in 12 years and reduce the amount of funds UNCG may need to cover unbudgeted utility costs,” Taylor said. “Later next year, we plan to begin other efforts to reduce our utility costs that will require each of us to pay closer attention to how we use energy and water. It is estimated that one-third of our electric bill pays for lighting. As a start, please turn lights off in rooms that are unoccupied.”
At UNCG, the project has been advanced by Dave Lumpkin, associate vice chancellor for facilities at UNCG, who saw the benefit of ESCO contracting at Louisiana State University in the early 1990s. “They told me that they saved enough money to pay for a chiller plant that was upgraded,” said Lumpkin. “It looked like a process that UNCG and other state universities could benefit from, but it’s only been available to us in North Carolina since 2003.”
UNCG Trustees approved the contract in August, but the process has been in the works since the fall of 2004. The detailed process includes two audits. The second audit was investment grade, which would make the project acceptable to lending institutions. The cost will be slightly more than $5.8 million and will be financed by Banc of America. Because of the contract’s size, approval by the North Carolina Council of State was required. According to the contract, Trane Comfort Solutions, as the ESCO, will cover any additional cost if the savings are not realized.
“We know that some of the other UNC schools are looking at this project very closely,” said Lumpkin. “If it will save money and help the environment, we’re glad to take the first step.”
