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Binghamton to consider $2.2M energy performance contract with Siemens including 42 EV chargers

Binghamton City Council · December 2, 2024
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Summary

Siemens presented an energy performance contract for city buildings that it says will fund upgrades from guaranteed energy savings, add 42 EV chargers, and leverage a $150,000 NYSERDA grant; councilors asked for cost breakdowns and verification terms and moved the item toward a business‑meeting vote.

Siemens Smart Infrastructure pitched an energy performance contracting package to the Binghamton City Council, proposing lighting, HVAC and controls upgrades across municipal facilities and installation of 42 electric vehicle charging stations. Chris Catt of Siemens said the company would engineer, construct and offer financing for the project and that the firm had already secured a $150,000 NYSERDA Clean Communities grant to offset costs.

The proposal aims to use guaranteed energy savings to fund capital improvements so the city does not have to draw on its capital budget. ‘‘We’re targeting items that drive energy savings and use those to fund the projects in a budget neutral way,’’ Catt said. Siemens’ engineering team described guaranteed unit‑of‑energy savings (kilowatt‑hours) and offered options for measurement and verification (M&V) to document results for the city and grantors.

Why it matters: Councilors raised questions about near‑term costs, revenue assumptions and verification. Siemens presented a high‑level financial snapshot that identified an approximate project cost in the mid‑millions and a projected positive net cash flow over the contract term under current assumptions. The company emphasized it would assume the risk if guaranteed energy savings fell short.

Council members sought detailed, itemized costs and clarity about ongoing maintenance and revenue from chargers. Council member (unnamed) asked specifically for a per‑charger cost and maintenance projection; Siemens committed to providing a unit cost breakdown and said the initial financial model conservatively projected zero revenue from charging to avoid overstating benefits. Siemens also said it would propose open‑source charger software to avoid vendor lock‑in.

The presentation covered several technical measures—LED upgrades in interior spaces, duct sealing, upgraded air handlers and new building controls—and operational steps such as commissioning, pre/post performance testing and use of third‑party reviewers for greenhouse‑gas calculations. Raj Selvaraj and Tommy Garrett of Siemens provided engineering details and said the firm’s savings calculations draw on national utility data and review by a third party aligned with the city’s climate action plan.

Next steps: Siemens asked the council to take final action before year‑end to capture incentives and financing advantages. Council members did not vote on the contract at the work session and requested a follow‑up package that includes: per‑unit EV charger costs and maintenance estimates; a clear breakdown of grants, rebates and the city’s expected financing exposure; the proposed M&V approach (term and fees); and confirmation of sites where existing electric infrastructure supports chargers.

Provenance: Siemens presentation introduced at the Dec. work session and discussed in detail during council Q&A; the city is scheduled to consider the legislation at an upcoming business meeting.