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NORESCO Selected by Pennsylvania State System of Higher Education to Improve Energy Efficiency at Dixon University Center

BUSINESS WIRE, September 19, 2008 – WESTBOROUGH, Mass.--(BUSINESS WIRE)--NORESCO, a global leader in guaranteed energy savings programs and on-site energy management, has been chosen by the Pennsylvania State System of Higher Education (PASSHE) to implement $1.5 million in energy and building system upgrades at the Dixon University Center in Harrisburg, PA. Key benefits of the project are improved energy and water efficiency, reduced energy and operating costs, greater system reliability, and improved working and learning conditions for building occupants.

Developed as a guaranteed energy savings agreement, the project will be funded by guaranteed cost savings over a 15-year term. This self-funding mechanism reduces the level of capital appropriations needed to pay for energy infrastructure improvements. Annual cost savings to PASSHE will exceed $85,000. PASSHE will also provide capital of $356,000 to fund specific cooling tower improvements that expand operating flexibility for the Center.

The project will produce environmental as well as cost control benefits. Emissions of carbon dioxide, a widely recognized contributor to global climate change, are expected to drop by more than 930,000 pounds each year. This is equivalent to removing 119 cars from the road or planting 148 acres of trees.

“The educational services delivered to students at Dixon University Center are a fine example of what is possible when public and private institutions work together,” said Randy Clark, Vice President and General Manager for NORESCO. “In the same way that the Center creates a place where public and private educational institutions work as a consortium to serve students, guaranteed energy savings agreements allow public and private institutions to work together for optimal use of energy and capital.”

By their very nature, guaranteed energy savings agreements group energy conservation measures with varying terms of economic payback to create an optimal portfolio of improvements. In this case, the $843,000 cost of major replacements to chiller and boiler infrastructure is funded by future savings from the replacements themselves and by other actions. Energy conservation measures such as state-of-the-art energy efficient lighting systems, improved energy management systems, and improved configuration of water services pay for themselves faster than the chiller and boiler improvements. This leaves residual savings to support the chiller and boiler replacements.

The Dixon University Center, located along the Susquehanna River, serves as a regional education hub with programs geared toward adult students. Services on the 6½-acre campus include undergraduate, graduate and certificate programs, professional development, and customized training taught on evenings and weekends. The executive offices of PASSHE are also located at the Center.

NORESCO is one of the largest U.S. energy service 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, public housing agencies, school districts, universities, state and local governments, and industrial and commercial businesses. Over the past two decades, NORESCO has implemented more than $2.5 billion in energy projects at more than 2,000 sites throughout the U.S. and abroad.

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