Guaranteed Energy Savings Program (GESP) via
Energy Savings Company (ESCO)
Basic Tenets
• Minnesota Statute 16C.144 authorizes the use of
a GESP Contract with an ESCO
– ESCO analyzes operational cost savings via ECM’s
(Energy Conversation Measures)
– Savings are guaranteed
– Funded by a Lease Purchase Agreement
– Funding arranged by ESCO
– Over a term of up to 15 years, maximum
– MnSCU has developed with Dept of Commerce
– Encouraged by State as alternative funding source
Steps Taken To Date
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Commerce issued an RFQ (Request for Qualifications)
(11) ESCO’s were pre-qualified to participate
These ESCO’s signed a Master Contract
SCSU developed and issued a Site-Specific RFP with the
aid of the Minnesota Department of Commerce
(MDOC)
• SCSU received (9) RFP responses, reviewed, and invited
three ESCO’s to interview, selected McKinstry
• McKinstry signed a Work Order with SCSU
• McKinstry is in the process of finalizing the ECM’s
Review Committee
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Peter Berger, MDOC
Kent Dirks, MnSCU
Ken Oas, MnSCU
John Frischmann, SCSU
Tim Norton, SCSU
*Several other members of MnSCU and SCSU were
involved in various stages of development and
review.
Financing
• ESCO responsible to solicit and arrange thirdparty financing loan to fund ECM’s
• Guaranteed Savings will exceed annual loan
payments due
• SCSU will pay lower utility bills plus new loan
payments; total will not exceed current utility
bills.
Opportunities
• Enhance student, faculty and staff participation,
education and practice, in the area of
sustainability and “green technology”
• Reduce Greenhouse Gas Emissions
• Potential use of renewable energy measures
• Reduce energy, operational, and maintenance
costs across system facility sites
• Opportunity to address deferred maintenance
needs through alternate funding sources
The Basics
• Projected total project (ECM) cost $12m to $16m
• Projected annual savings
$800k to $1m
• Simple payback
12 to 15 years
Energy Conservation Measures (ECM’s)
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Cogeneration Microturbine Plants
High- to Low-Pressure Steam Operations
Stack Heat Recovery
Reverse Osmosis Boiler Makeup
Lighting Upgrades
Digital Control Upgrades
Water Conservation Measures
Domestic Hot Water Improvement
Building Envelope Improvements
Energy Conservation Measures (ECM’s)
• Solar PV/Solar Air Preheat
• Green IT Measures
• Condenser Coil Coating
• V-Belt Drive Upgrades
• Transformer Upgrades
• Education Bldg. HVAC Upgrade
• Vending Misers
Projected Outcomes
• Reduce 20% energy costs in academic buildings
• Reduce by 24% CO2 emissions from utility energy
• Improved learning environment comfort for staff and
students
• Career relevant experiential learning
• Demonstration of environmental awareness and
improvement
Schedule
• Complete ECM Preliminary Assessment
September 2013
• Start Investment Grade Audit
October 2013
• Complete Investment Grade Audit
February 2014
• Presentation to Leadership Council
February 2014
• Presentation to MnSCU Board of Trustees
March 2014
• Construction Begins
Spring 2014