Pepco Energy Services signs energy savings performance contract with US Navy

Written By: Stratton Report
February 16, 2016


On February 16, Pepco Energy Services, Inc., an energy savings performance contractor, announced that it has been awarded an $80.4 million Energy Savings Performance Contract task order by the United States Navy at Naval Station Great Lakes. The task order, awarded under the United States Department of Energy ESPC Indefinite Delivery Indefinite Quantity, or IDIQ, contract, includes a $42.4 million investment in new energy efficiency improvements and renewable energy systems.

According to the company, the project will generate approximately $4 million per year in guaranteed energy savings and $79.9 million during the 16.5-year performance period of the task order.

Construction is expected to be completed over a two-year period during which time the project will provide another $1.8 million in guaranteed savings to the Navy, per Pepco.

The energy conservation measures include new LED technology, water conservation, building envelope improvements, 3,000 tons of new cooling capacity, 2.7 MW in solar hybrid systems, new HVAC systems, and retro-commissioning of HVAC systems, among others. Work at NSGL will be performed in 60 buildings as well as at the landfill and on the roadway lighting systems.

After construction is completed, Pepco Energy Services will provide ongoing maintenance, continuous commissioning, and measurement and verification services over the task order performance period.
Dr. Tim Unruh, DOE’s Federal Energy Program Management Director noted:

“The U.S. Department of Energy appreciates the strong leadership and commitment of federal agencies to increase the use of energy efficiency and renewable energy that will help meet energy-related goals in support of their critical missions.”

John Huffman, president and CEO of Pepco Energy Services remarked: “This collaborative effort between the Navy and Pepco Energy will generate substantial operational, economic and environmental benefits for the Navy at NSGL for years to come. DOE’s ESPC program is an invaluable tool and resource for the federal government and DOD to meet their energy and infrastructure improvement needs in today’s budget-challenged environment.”