Utility Energy Efficiency Service Contract

Writers' First Review Draft:    (2XNQ)

Term    (2XNR)

Utility energy efficiency service contract (UESC)    (2XNS)

Reviewer Comment: And what does this term have to do with Enterprise Architecture in a straightforward manner? Recommend that it be deleted.    (2XNT)

Origin/Source for Inclusion of the Term    (2XNU)

Circular No. A–11 Section 300—Planning, Budgeting, Acquisition, And Management Of Capital Assets OMB Circular No. A–11 (2005)    (2XNV)

OMB Context Definition    (2XNW)

Reference/URL OMB Context Definition    (2XNX)

Business Definition    (2XNY)

(Contracts that) Federal agencies often enter into (with utilities) to implement energy improvements at their facilities.    (2XNZ)

Reference/URL for Business Definition    (2XO0)

Department of Energy: http://www.eere.energy.gov/femp/financing/uescs.cfm    (2XO1)

Technical Definition    (2XO2)

A local utility providing up-front project funding and Federal agencies pay for the services over time, either on their utility bill, or through a separate demand-side management agreement. See FAR Part 41 for more information.    (2XO3)

Reference/URL Technical Definition    (2XO4)

OMB Circular A-11, Section 300-6.    (2XO5)

Context Definition 1    (2XO6)

With a UESC, the utility typically arranges financing to cover the capital costs of the project. Then the utility is repaid over the contract term from the cost savings generated by the energy efficiency measures. With this arrangement, agencies can implement energy improvements with no initial capital investment; the net cost to the Federal agency is minimal, and the agency saves time and resources by using the one-stop shopping provided by the utility.    (2XO7)

Reference/URL Context Definition 1    (2XO8)

Department of Energy: http://www.eere.energy.gov/femp/financing/uescs.cfm    (2XO9)

Context Definition 2    (2XOA)

More than 45 electric and gas utilities have provided project financing for energy and water efficiency upgrades at Federal facilities, investing more than $600 million through utility energy services contracts since 1995. The Edison Electric Institute has committed to encouraging $2 billion in private investment funding by 2010 for life-cycle, cost-effective Federal facility improvement projects. In fiscal year 2000, $157 million in private-sector investments generated $35 million in savings at Federal facilities. These projects are now paying for themselves from a share of the cost savings resulting from efficiency improvements.    (2XOB)

Reference/URL for Context Definition 2    (2XOC)

Department of Energy: http://www.eere.energy.gov/femp/financing/uescs.cfm    (2XOD)

Context Definition 3    (2XOE)

Reference/URL for Context Definition 3    (2XOF)

See Also Related Terms    (2XOG)