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District 11 to further study energy-performance contract after audit shows potential multi-million-dollar savings
Summary
Schneider Electric presented an investment-grade audit showing an estimated $1.5 million annual energy savings and a 20-year projected savings of about $46million guaranteed; the board asked staff to return in August with financing and implementation options.
District 11 staff and Schneider Electric presented an investment-grade energy assessment and a draft energy performance contract (EPC) at the June 11 board meeting. Schneider's team said the package would allow the district to install roughly $25 million in energy-efficiency and building upgrades within about 12 months and to fund those improvements from the guaranteed energy savings.
Key items Schneider highlighted included LED lighting upgrades, building automation systems, HVAC improvements at targeted campuses, and service to maintain performance. Schneider estimated first-year utility savings at roughly $1.5 million and projected total savings in the $46million to $51million range over a 20-year term; financing the $25million scope over 20 years would result in approximately $41million in payments against which the vendor guarantees energy savings. The firm said the project would be structured so guaranteed savings cover finance payments and that Schneider would write a check for any shortfall relative to the guarantee.
District staff presented alternatives: (1) pursue the full EPC with an external partner (faster delivery, larger scale, guaranteed savings but multi-year contractual obligations and potential long-term commitments for affected buildings), or (2) stage internal projects over time (slower, smaller scope, fewer long-term contractual obligations). Staff and the vendor noted potential complications when district buildings are rebuilt or taken out of service: large capital investment in a building that is later replaced could complicate the EPC baseline, so staff said they would identify buildings where near-term investment makes sense.
After discussion the board indicated it wanted more detail before making a formal commitment. Directors asked for: (a) a financing plan and cost estimates for participation, (b) clarity on staff time obligations and any operational limits that would accompany an EPC agreement, (c) a comparison of the vendor-run EPC to an internal, staged approach. The superintendent and finance staff will gather lender proposals and return at an early August meeting with formal financing options and a recommendation. The board did not approve financing or contract execution at the June 11 meeting.
Schneider and district leaders also noted classroom benefits from improved lighting and HVAC that increase learning conditions and indoor air quality. Schneider said it has delivered similar projects for other Colorado K-12 districts through the Colorado Energy Office program and that the EPC model is designed to be budget-neutral by design.
