ARTICLE · 21 MAY 2013

Energy Savings Performance Contracts

Pepper Hamilton LLP

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The Department of Energy is extending the deadline for industry feedback on its Energy Savings Performance Contracts to May 17, 2013.

United StatesGovernment, Public Sector

Pepper Hamilton LLP

The Department of Energy is extending the deadline for industry feedback on its Energy Savings Performance Contracts ("ESPC") to May 17, 2013.

The Department of Energy website explains ESPCs as follows:

An ESPC is a partnership between a Federal agency and an energy service company (ESCO). The ESCO conducts a comprehensive energy audit for the Federal facility and identifies improvements to save energy. In consultation with the Federal agency, the ESCO designs and constructs a project that meets the agency's needs and arranges the necessary funding. The ESCO guarantees that the improvements will generate energy cost savings sufficient to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the agency. Contract terms up to 25 years are allowed.

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