Piedmont Natural Gas Co. (NYSE: PNY) and Energy Systems Group (ESG), a wholly owned subsidiary of Vectren Corp. (NYSE: VVC), are implementing a Utility Energy Services Contract (UESC) by the Naval Facilities Engineering Command Mid-Atlantic (NAVFAC MIDLANT), signed in March, for a comprehensive steam decentralization project at Marine Corps Base Camp Lejeune in North Carolina.
The project is beneficial for all parties, allowing Lejeune the opportunity to invest and upgrade aging infrastructure to realize efficiency and cost-savings at no up-front cost and will yield more than $37 million in projected savings over the 15-year term, the contractors said in a Sept. 28 statement.
The project marks Piedmont’s first and ESG’s largest UESC, a contracting vehicle that offers federal agencies a cost-effective means to implement energy efficiency, renewable energy, and water efficiency projects. Using the UESC program will allow Camp Lejeune to complete its steam decentralization program by April 2017, and shut down three central steam plants – two of which currently burn coal.
The project scope includes design, construction, and commissioning of comprehensive energy savings upgrades for 37 buildings at three major locations at Camp Lejeune. Infrastructure improvements will consist of new high-efficiency boilers, hot water heating systems, heating, ventilation, and air-conditioning upgrades and water treatment equipment, integrated into a major controls expansion. Site enhancements will also include construction of new boiler buildings for improved reliability of decentralized systems.
“In our current constrained fiscal environment, third-party financing like this UESC at Camp Lejeune allows the Marine Corps to repair or replace outdated equipment with no upfront capital cost because the UESC uses the energy savings generated by the project, to pay for the project,” explained Randy Monohan, energy projects officer for Marine Corps Installations Command.
Greg Collins, ESG president added: “ESG is proud to partner with Piedmont Natural Gas and NAVFAC MIDLANT to develop cost-effective energy conservation measures that will further promote sustainability, efficiency, and environmental stewardship at Camp Lejeune by allowing them to complete their steam decentralization on time.”
Piedmont’s Vice President for Business Development and Technology Services, Ken Valentine, also commended the project, “We have been proud to support Camp Lejeune through this project and through our valued partnership with ESG and NAVFAC MIDLANT,” said Valentine. “When completed, this project will result in greater energy efficiency at the base, help reduce Camp Lejeune’s carbon footprint, and promote greater environmental stewardship and sustainability.”