BRADENTON, Fla. - Johnson Controls will implement energy and water conservation measures at Phillips State Prison in Georgia’s first bond-financed energy performance contract.
Over the 15-year term of the contract, the guaranteed energy savings will exceed $7.3 million for the $4.5 million project funded by state-issued general obligation bonds.
Phillips State Prison, constructed in 1988, houses more than 900 inmates. It will receive nearly a dozen energy and water upgrades in the contract with Johnson, through the Georgia Environmental Finance Authority. GEFA is the lead agency for state energy programs.
The project is the first since the state’s voters approved a constitutional amendment in November 2010 allowing energy performance contracting to be financed with debt. The change in law became effective Jan. 1, 2011.
Bonds and private lenders will be sources of loans for future projects, according to agency spokesman Shane Hix.
“Conservation measures implemented through energy performance contracts provide state facilities with immediate and future energy and water savings,” GEFA Executive Director Kevin Clark said in a release. “State agencies now have another viable financing alternative that will help with lowering utility bills and with repairing or replacing outdated equipment and systems.”
Energy performance contracting permits state agencies to use funds normally spent on utility bills to finance building improvements designed to lower energy and water consumption. The state goes through an open, competitive process to choose an energy services company for projects.
Companies that are selected must guarantee that the state will save a certain amount of money with the installation of energy- and water-efficient equipment and systems. The state uses the guaranteed savings to pay for the work over a period of years.
The projects also will help the state meet its commitment to the Georgia Energy Challenge and reduce consumption by 15% in state facilities by 2020, from baseline consumption levels in 2007, officials said.
