On Oct. 31, subsidiaries of NRG Energy (NYSE: NRG) and NRG Yield entered into an Engineering, Procurement and Construction (EPC) agreement for the construction of a 73 MWt district energy system for the University of Pittsburgh Medical Center (UPMC).
NRG Yield will provide approximately 150 kpph of steam, 6,750 tons of chilled water and 7.5 MW of emergency backup power service to the UPMC. NRG Energy said in its Nov. 4 earnings report that the initial term of the energy services agreement (under fixed capacity payments) with UPMC Mercy will be for a 20 years from the service commencement date. Under to the terms of the EPC agreement, NRG Yield will pay NRG $79 million, subject to adjustment based upon certain conditions in the EPC agreement, upon substantial completion of the project.
The project is expected to achieve commercial operations in the first quarter of 2018.