Energy Performance Contracting (EPC)

Description

Energy Performance Contracting is a creative model for funding and implementing capital improvement upgrades, which allows public entities to use future cost savings to fund projects.

EPC

Prior to entering an EPC, an Energy Service Company (ESCO) conducts an Investment Grade Audit (IGA) and delivers a project proposal that includes: energy & water efficiency measures, renewable energy systems, electric vehicle technology, operations & maintenance and/or metering infrastructure improvements. 

Using the stream of income from cost savings or renewable energy produced, the project repays itself over the contract term (see figure above).

 Based on age, size, and energy loads, 14 Broomfield buildings/facilities were identified for inclusion in the IGA. 

The Colorado Energy Office EPC Program assists Local Governments, Special Districts, School Districts, Institutions of Higher Education, and State Agencies to incorporate conservation measures with little or no upfront capital. Energy Performance Contracting clients have upgraded their facilities with both common and innovative savings measures.

 For further information, see the Colorado Energy Office’s EPC project page

History & Timeline

  • January 2021 - Memorandum of Understanding signed between Broomfield and the Colorado Energy Office. 
  • July 2021 - After a competitive process, Broomfield selects McKinstry ESCO to develop the Investment Grade Audit.
  • April 2022 - McKinstry delivers 60% “rough order of magnitude” facility improvement measures.
  • July 2022 - McKinstry recommends 10 final projects as facility improvement measures (FIMs).
  • Fall/Winter 2022 - Broomfield staff will determine a budget and finance strategy. 
  • 2023-2025 - Implementation, construction, and buildout of FIMs.