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Southmoreland board authorizes no‑cost RFQ for guaranteed energy‑savings project after Constellation presentation

Southmoreland School District Board of School Directors · June 18, 2024
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Summary

After a Constellation presentation on guaranteed energy‑savings under PA Act 39, the Southmoreland School District board authorized administration to let Constellation prepare a request for qualifications at no cost and discussed next steps including an investment‑grade audit and measurement and verification.

The Southmoreland School District board on June 18 authorized administration to permit Constellation, an energy services company, to prepare a request for qualifications (RFQ) for an energy‑savings project at no cost to the district.

Constellation representatives told the board they conducted a six‑month preliminary assessment and provided a “menu” of Energy Conservation Measures (ECMs) — lighting upgrades, HVAC and other capital work — that could be selected for implementation. They described the project model as an investment‑grade audit (IGA) followed by a guaranteed‑savings contract under Pennsylvania law (PA Act 39). “All of the savings that we’re gonna identify are guaranteed. So if we don’t meet those savings, we’re gonna write you a check,” a Constellation presenter told the board during the presentation.

The company emphasized a turnkey, design‑build approach and said it performs measurement and verification (M&V) after project completion to confirm savings. Constellation representatives said their preliminary numbers exclude grants and utility incentives from the cost forecasts but that they assist districts in securing rebates and typically sign rebates over to the district.

Board members asked for examples of other local districts where Constellation has worked; the company listed recent or ongoing projects in Deer Lakes, New Brighton and Rochester area districts and county governments. Members pressed about timing and sequencing of measures; the presenters said lighting is often an early ECM that produces immediate utility savings and that a typical construction timeline can be about 12 months for major phases.

Before the RFQ authorization the board amended the agenda language to replace “investment‑grade audit” with “request for qualifications” and explicitly required that Constellation prepare the RFQ at no cost to the district. The amended motion carried by voice vote.

Next steps outlined by staff and the presenter include publishing the RFQ to solicit competing firms, evaluating responses, and, if a firm is selected, completing an IGA that will contain line‑by‑line audits, engineering specifications and M&V procedures. The board did not authorize construction financing or final contract awards during the meeting.

The board’s action authorizes the RFQ step only; any future contract, IGA, or construction will return to the board for formal approval.