240 | Business World Magazine |
April 2013
capture twice as much energy output over
this year. The city has negotiated a 20-year
deal with a company known as Solar Power
and Light (SP&L). In a move that will not
cost Cincinnati one red cent, SP&L plans to
build, operate and maintain solar power fa-
cilities at its own expense. In turn, the city
will purchase energy from SP&L at a cost
that is less than what they now pay. “This
enables us to better budget for future energy
cost, is a hundred percent green, and even in
Cincinnati where there is cheap coal, we can
Less than $2 million of City capital funds were used to leverage over $14 million of energy efficiency work through an ener
City of Cincinnati Fact Sheet
2009/2010 Energy Services Performance Contractin
Background
Like most cities, the City of Cincinnati is challenged by its aging facilities and limited capital funds. Most of the facilities were
operational expenses were not a major factor in building design and most are now in need of technology and comfort upgrades.
What is Energy Services Performance Contracting?
State of Ohio enabling legislation introduced in 1994 (and amended in 2008) allows municipalities to fund capital improvem
savings through a guaranteed performance based contract. The installation of energy savings measures can be financed by Ohi
useful life of the equipment, typically 15 years, and is not included in the calculation of the municipality’s net indebtedness.
How is the City of Cincinnati Currently Using Energy Services Performance Contracting?
The City owns/operates nearly 400 buildings. Energy audits of key buildings have been conducted
at 88 buildings to date, including City Hall, the Duke Energy Convention Center, and facilities
operated/managed by Fire, Police, Recreation, Health, Parking, Lunken Airport, and Public
Services. Nearly $15 million of energy efficiency upgrades in 69 City facilities was leveraged by
about $1.7 million of City capital and $1.1 million of Energy Efficiency and Conservation Block
Grant funding. When all the lighting, heating and air conditioning, building automation, and
building envelope upgrade work is completed, City energy use will be reduced by more than 10.1
million kWh and energy costs will be reduced by over $1 million per year. The work will also
generate 100,000 kWh of renewable energy and reduce greenhouse gas emissions by 8,929 metric
tonnes.
How did the City Fund the Current Performance Contracts and what are the expected Environmental and Financial
Year
Total Project
Costs
City Financed
w/Energy
Savings
City Capital
Duke Energy
Rebates/State
Grants
Federal
Grant
Funding
State Grant
Funding
Annual Energy
Reduction
Annual
Energy
Generation
2009
$5,908,691
$4,511,652
$469,000
$190,172
$334,930
$402,937
3.8M kWh/
116,213 ccf
100,000 kWh
2010
$8,810,640
$6,515,953
$1,238,737
$253,574
$802,376
0
6.3M kWh/
33,907 ccf
0
TOTAL
$14,791,331
$11,027,605
$1,707,737
$443,746
$1,137,306
$402,937
10.1M kWh/
150,120 ccf
100,000 kWh
