Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy And Financing topic
No spam. Unsubscribe anytime.
NIU trustees approve $53 million step toward campus energy overhaul, authorize financing steps
Summary
The board approved a $53 million capital request to implement an energy savings agreement with Trane covering upgrades across 51 campus buildings and authorized pursuing certificates of participation to finance the project; trustees pressed for reporting and were told Trane guarantees measured savings.
Northern Illinois University’s Board of Trustees on a special meeting approved the university’s recommendation to move forward with a $53 million capital allocation to implement a campuswide energy savings agreement with Trane, and separately authorized steps to pursue financing through certificates of participation.
President Freeman told trustees the proposed energy savings agreement (ESA) follows an earlier $3 million launch and would fund improvements across 51 campus buildings, including HVAC upgrades, lighting and water conservation, building envelope improvements, solar arrays and electric vehicle chargers. The university presented a conservative financing model that estimated $123,400,000 in combined capital and financing costs and $28,800,000 in net savings over the modeled financing period.
The board’s discussion focused on contractual guarantees and financing structure. Trustee Dennis Barsema asked whether the savings were guaranteed. George Middlemist, NIU’s vice president for administration and finance, said, "That's correct, Dennis. The savings are guaranteed," and explained the approach: Trane measures current energy consumption, implements improvements, and then measures post‑implementation performance against baselines.
John Dunlap, the Trane representative who addressed the board, told trustees the company takes a conservative approach and prefers to achieve savings rather than pay incentives, saying there are "very few" examples where expectations were not met. University staff said measurement and verification would include established baselines, multiple checkpoints and formal verification twice a year, and that the board would receive regular updates—at least annually and likely twice yearly during implementation and the performance period.
Trustees also probed operational details. The board was told all installation labor on campus would be paid prevailing wage and that implementation would require close coordination to avoid disrupting classes; staff projected a 1½‑to‑2‑year window to complete installations and said components would be tracked as they were finished.
On financing, NIU staff said they expect a positive cash‑flow impact assuming the projected savings, and referenced approximately $8 million in subsidies that will be received over a few years to help reduce interest expense. The board authorized development of a preliminary official statement and the sale of certificates of participation to market the financing; Moody’s was scheduled to visit next week as part of the rating review.
Chair Montell Gales called for the motions on the ESA and the related financing resolutions; both were approved by voice vote.
The university said the $53 million would not be spent unless a financing agreement that is net revenue positive is successfully negotiated and that if Trane’s guaranteed savings fall short, contractual remediation and remittance would be used to make the university whole. Implementation reporting and the financing terms were identified as topics the board will continue to monitor.
