City Council

1
Comprehensive Energy Management Services for the
City of Lowell

• City Council
• November 24, 2009

2
Citys Program Goals
Energy Savings in Operating Budget Funding
Capital Upgrades with avoided costs Rectifying
Deferred Maintenance Introducing Renewable Energy
3
Program Approach

• City contracted Ameresco, Inc. under a Technical
  Energy Audit Project Development Agreement
• Ameresco presented a preliminary energy audit on
  July 15, 2009
• Over 30 distinct types of conservation measures
  across 50 buildings have been identified
  (excluding Enterprise facilities)
• Investment-Grade Audit to be completed this year
• Energy Management Services Contract will enable
  financing and construction (and guaranteed
  savings)

4
Ameresco

• Industry leader in Public-Sector Performance
  Contracting
• Full-Service, Complete In-House Capabilities
• Nearly 600 professionals dedicated specifically
  to Energy Services
• Deliver over 400 million of Energy
  infrastructure projects annually
• Guarantee over 300 million of annual savings
• Massachusetts-based with corporate headquarters
  in Framingham
• The largest independent Energy Services Company
• Unbiased approach unaffiliated with any product
  or parent company
• Deliver the most comprehensive projects at the
  greatest value

5
Amerescos Experience in the City

• Lowell Housing Authority
• 9 Million program
• over 1 Million annual savings
• 10 federal public housing sites and 1,638
  apartment units
• Construction completed January 2009 -
  Ameresco is now monitoring long-term performance
• Leo Roy Parking Facility
• Complete lighting systems retrofit and upgrade
• Nearly 100,000 annual electricity savings
• Installed under National Grid Project Expediter
  incentive program

6
Contracting Approach

• Open-Book pricing
• Ameresco In-House Engineering and Construction
  Administration
• Direct Equipment Procurement by Ameresco No
  Double Markups
• Labor and Materials (Contracts) Competitively Bid
  and in collaboration with the City
• Utilize Local Contractors and suppliers to the
  greatest extent possible

7
Technical Approach
See Handout Energy Conservation Matrices
8
Financial Approach

• Over 20M in immediate infrastructure upgrades
• Nearly 1M in Utility rebates
• 250k ARRA EECBG grant
• 20-year repayment term utilizing up to 40M in
  savings

9
Financing

• Ameresco Finance Group will assist City (CFO)
  along with Citys Bond Counsel and Financial
  Advisor to structure best financing available
• Municipal Lease or Bond
• Tax-exempt or taxable utilizing Build America
  Bonds or Recovery Zone Bonds

10
Long-Term Services

• Monitor energy consumption and environmental
  impact
• Greenhouse gas emissions reductions
• Training Staff, Faculty, Students
• Potential Student Internships
• Energy and Environmental Education Tools
• Recognition programs and media exposure
• EPA Energy Star certification

11

• Solar PV

12
Identified the Best Solar Sites in the City

• Maximize sunshine(avoid trees and obstructions
  that cause shading)
• Satisfactory Structural integrity
• Minimize site preparation costs(for example, use
  buildings with newer roofs)
• Minimize project complexity that would delay or
  impede state incentive funding

13
Designed Solar Arrays On the Best Sites

• Five Buildings Selected to Receive Solar PV
• Peter W. Reilly Elementary School126 kW 155,000
  kWh
• Pawtucketville Memorial Elementary School89 kW
  113,000 kWh
• Benjamin F. Butler Middle School22 kW 27,000
  kWh
• John J. Shaughnessey Elementary School43 kW
  56,000 kWh
• Lowell Memorial Auditorium62 kW 78,000 kWh
• TOTAL 342 kW 429,000 kWh

14
Financial Benefits To Citywith a Power Purchase
Agreement (PPA)

• No Cost To City Ameresco Owns, Operates,
  Maintains
• Utilize Tax Benefits to Lower Electricity Price
• Federal Solar Investment Tax Credit Used By
  Ameresco
• Accelerated Depreciation Tax Benefit Used By
  Ameresco
• Utilize MA Commonwealth Solar Rebate to Lower
  Price
• One of last projects to be accepted under now
  closed program
• 1.19 Million Rebate Pending PPA Approval and
  Execution By City

15
Other Benefits For City

• Transparency
• Open Book Construction Pricing to Achieve Lowest
  Cost
• Local Jobs
• Request Bids From Local Electrical Contractors
• Reduction in Citys Carbon Footprint
• 160 tons of Carbon Dioxide Emissions Avoided Each
  Year in New England (equivalent to 6,600 trees)