Reports to the 2007 General Assembly 

Legislative Report 17

Title: Energy Contracts

ENERGY SERVICE COMPANIES
ENERGY EFFICIENCY AND FUEL SWITCHING

Title 29, Chapter 5 Section 152, paragraph 27) required, after consulting  with the State Treasurer to determine the effect of the contract on the state's debt and reviewing the creditworthiness of the company with which the state proposes to contract, and with the approval of the emergency board, enter into multiyear contracts with energy service companies or third-party leasing companies for energy efficiency and fuel switching improvements to state facilities, the cost of which will be recovered through the avoided fuel, utility, operating, and maintenance costs resulting from the improvements. Improvements must within 20 years achieve savings sufficient to cover their costs. The commissioner shall report annually to the house and senate committees on institutions regarding the status of contracts undertaken under this subsection.

Further, Title 29, Chapter 5 Section 152 Paragraph 28 requires that, with the approval of the emergency board, enter into performance contracts with private sector providers to create energy-smart state buildings and facilities primarily through revised operating strategies that will result in operating cost savings. The commissioner shall work with private energy contractors and utilities companies to develop a plan to conduct energy audits, analyze the state's energy needs, improve purchasing procedures to speed the conversion to new technology, and develop revised operating strategies to identify the best use of the latest energy-saving technology. The commissioner shall report annually to the house and senate committees on institutions regarding the status of contracts undertaken under this section:

In accordance to these Statutes, the following report is submitted:

After an extensive selection process involving eight potential qualified prospective Energy Services Contractors, the Commissioner of Buildings and General Services  has selected and entered into a contract, for the Energy Audit phase only, with the NORESCO Company to provide Energy Services for the Montpelier, Middlesex and Waterbury State office complexes. This contractor is currently in the process of performing energy audits and analysis of energy related functions and systems of all buildings of the above complexes.  The audits and analysis process will result in a comprehensive proposed package of energy conserving measures including improved purchasing procedures, cost effective energy saving  technologies, and revised operating strategies.  The final version of this energy conservation project package will be arrived at through a negotiated process whereby the commissioner of BGS will examine and agree to properly analyzed measures with positive cost and benefits relationships  and cash  flow projections , using accepted life cycle cost analysis methodologies. Finally NORESCO will propose, in January of 2007 the implementation of the agreed upon project with reimbursement based on a guaranteed energy cost savings in accordance to  paragraph 27 above. The commissioner will follow with consultations with the Treasurer and Emergency Board per paragraph 28 above.