For commonly asked questions about the Energy Savings Performance Contract (ESPC), see the list below or view a PDF version.
The Board of Water Supply (BWS) has entered into a 20-year, $33 million ESPC with NORESCO LLC. An ESPC is an innovative contract method for government agencies to achieve energy savings by allowing for a long-term partnership with an energy service company (ESCO) to facilitate and accelerate energy conservation measures, or ECMs. The purpose of ECMs are to generate enough cost savings to cover project costs over the term of the contract. The ECMs were developed by NORESCO LLC., after it conducted a comprehensive energy audit to identify energy saving opportunities for the BWS. The BWS is the first county water utility in Hawaii to execute an ESPC.
The cost for the $33 million ESPC is being financed by a low-interest loan from the Drinking Water State Revolving Fund, managed by the State of Hawaii Department of Health. The loan will be paid back by the approximately $3.3 million annual savings in energy costs after the implementation of various ECMs. The interest rate for the loan is one percent.
The BWS followed the process outlined in the State Procurement Office Vendor List Contract No. 12-11, which can be found on the State Procurement Office website.
The benefits to the BWS are:
NORESCO guarantees a reduction of the BWS’s annual electrical usage by about 8 million kilowatt hours (kWh), or 9 percent of the BWS’s total purchased electricity through the installation of the following ECMs:
The installation of the ECMs are expected to begin later this calendar year, construction will last for approximately three years.
Any costs savings from the ESPC will be reinvested in additional energy-savings projects and will not affect water rates. Throughout the duration of the current ESPC, the BWS will continue to look at renewable energy opportunities to further manage energy use and control operating costs.
ESPCs are currently being used by the Hawaii State Department of Accounting and General Services, Hawaii State Department of Transportation, Hawaii State Department of Public Safety, and the City Department of Environmental Services, to name a few.
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