Utility Energy Service Contracts
As authorized by congressional legislation and presidential orders such as the Energy Policy Act of 1992 and Executive Order 13123 (EO 13123), federal agencies have the capability to partner directly with their franchised or serving utility on a sole source basis through utility energy service contracts (UESC). As with energy savings performance contracts, UESCs enable the federal customer to inexpensively finance cost-effective energy efficiency improvements, water conservation, and renewable energy projects without an initial capital investment.
Since the 1990’s, more than 60 electric and gas utilities have provided project financing for energy and water efficiency upgrades at federal facilities, investing more than $700 million through the UESC mechanism. Furthermore, the General Services Administration has established more than 150 utility Area Wide Contracts with participating utilities to facilitate the continued implementation of energy conservation measures to federal facilities around the country. To date, such investments have resulted in approximately $160 million in annual government savings.