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NORESCO Chosen by State of Missouri for $9 Million Projects to Generate Energy Savings and Improve Air Quality

Business Wire, November 14, 2007 – WESTBOROUGH, Mass.--(BUSINESS WIRE)--The State of Missouri has selected NORESCO, a global leader in guaranteed energy savings programs and on-site energy management, to implement guaranteed energy savings agreements with a value of more than $9 million. The agreements between NORESCO and the State of Missouri Office of Administration, Division of Facilities Management, Design & Construction (FMDC), will provide improvements in energy efficiency and reduce corresponding greenhouse gas emissions at the Southeast Missouri Mental Health Center and the Farmington Correctional Center.

According to the terms of the agreements, NORESCO guarantees a 25 percent reduction in annual energy consumption compared to facility baselines. The facilities are expected to reduce carbon dioxide emissions by 2,396 U.S. tons over the life of the projects, the equivalent of removing 7,580 cars from the road over 15 years. Carbon dioxide emissions are a widely recognized contributor to global climate change.

Infrastructure and environmental improvements are the joint efforts of FMDC, the Missouri Department of Corrections, the Missouri Department of Mental Health, and NORESCO. The projects are structured as performance contracts, enabling Missouri to implement facility improvements at no upfront cost to taxpayers. Savings realized from reduced energy consumption will pay for equipment investment, installation, and related financing over the 15-year funding term.

NORESCO Vice President Bill Foster, speaking on behalf of NORESCO, stated, “We are extremely pleased that NORESCO has been chosen to implement these projects for the State of Missouri. The effort of dedicated and collaborative Missouri employees, working closely with the NORESCO team, helped us structure customized projects to provide significant energy savings, environmental improvements, and modernizations for both facilities.”

The Southeast Missouri Mental Health Center, which provides inpatient mental health services to citizens in a 31-county area of southeast Missouri, will benefit from improved lighting systems and improved energy management systems. Not only will lighting fixtures be more efficient, new controls will minimize unnecessary usage in offices and conference rooms and daylight sensors will optimize usage when sufficient natural light is present in selected areas. A new energy management system utilizing direct digital controls will provide optimization functions based on total system demands, equipment efficiency, weather conditions, and occupancy.

The Farmington Correction Center will benefit from these same two system measures, as well as extensive improvements in water conservation, heating, steam distribution, and the building envelope. Opened in 1986, the Farmington Correctional Center is a medium-security male correctional facility that can accommodate up to 2,686 inmates. It was built on the grounds of the former Farmington Mental Hospital, where some of the buildings were constructed as early as 1902.

A new water control system will reduce water usage per device, lower maintenance costs, and improve device control. More than 1,000 plumbing fixtures will be addressed. Two new high-efficiency boilers in the central steam plant will meet the facility’s steam loads under a range of conditions while keeping one existing inefficient boiler offline. Installation of new boilers for the water treatment plant will allow the plant to operate independently from the central steam plant. New radiator steam control valves and improvements to the building envelope will improve occupant comfort, increase building efficiency, and reduce maintenance costs.

NORESCO is one of the largest U.S. energy services companies specializing in the development, design, construction, financing, and operation of energy and environmental efficiency projects, performance contracting, and central energy plants. Its clients include various departments of the U.S. government, school districts, universities, state and local governments, and industrial and commercial businesses. Over the past two decades, NORESCO has implemented more than $2 billion in energy projects at more than two thousand sites throughout the United States and abroad.

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