On Thursday, Jan. 29, the Chester County Commissioners approved a $5.9 million contract that guarantees lower energy and water use at county buildings - reductions that will produce savings that ultimately exceed the contract’s cost, officials said.
The contract, outlined by Steve Fromnick, the county’s director of facilities and parks, includes conservation measures guaranteed to provide $6.7 million in savings through the county’s 15-year energy performance contract with Constellation, an energy service contracting organization (ESCO).
Chester County Commissioners’ Chair Terence Farrell said the contract represented another step toward reducing energy usage within county-owned buildings. “This new project reflects our continued commitment to implement water- and energy-saving measures for the good of the environment, but that also have the benefit of bringing a monetary return to the county.”
Speaking at the commissioners’ meeting, Fromnick said a task force that included representatives from the Facilities and Parks, Purchasing, and Finance Departments, had conducted research, issued bids, and felt Constellation, an Exelon company, best met the county’s needs for facility improvement and energy conservation. Its proposal also offered the most attractive cash flows based on the county’s investment, he added.
Commissioner Kathi Cozzone noted that the county is facing a situation “where aging facilities, volatile energy costs, and capital constraints make operating buildings cost-effectively a major challenge.” She said that although the county has decreased electricity usage since 2010, the contract would enhance the efforts to reduce the county’s carbon footprint.
“By implementing the water and energy conservation measures proposed by Constellation, Chester County will be saving an estimated 2.2 million kilowatt-hours in electricity and more than 18 million gallons of water every year,” said Commissioner Michelle H. Kichline.
Fromnick said the county would also reduce its carbon dioxide emissions annually by nearly 2,000 metric tons. That amount is equivalent to 149 households or 419 cars, he said.
The $6.7 million in savings includes $800,000 in “avoided costs” - capital projects that the county can now cross off its to-do list, Fromnick said. “If our utility costs are not reduced by this amount following our investment, then Constellation makes up the shortfall,” he said.
Fromnick said Constellation would implement energy conservation and facility improvements at the following county locations: Chester County’s administration building at 313 W. Market St.; the Justice Center; the Historic Courthouse; the Government Services Center; the Henrietta Hankin Library; the Pocopson Home; the Chester County Prison and its Work Release Center; and the Chester County Youth Center.
He estimated the work, which would include the installation of smart electric meters, energy efficient lighting including LED fixtures, steam efficiency improvements, HVAC equipment replacements, ozone laundry systems and building automation system upgrades, would take about a year to complete. During that time, the county would be billed for the $5.9 million in labor and materials.
Under the state’s Guaranteed Energy Savings Act, Fromnick said the county could have contracted with a third party to put up the money; however, because of Chester County’s Triple AAA bond rating, it has access to lower interest rates, making it more cost-effective to avoid a third party.
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