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Verigee pitches guaranteed energy-savings contract to Gary committee; vendor cites statute and IRA timing
Summary
Verigee representatives briefed the committee on a guaranteed energy-savings contract process under Indiana code IC 36-1-12.5 and said solar components generally must be installed by the end of 2027 to qualify for Inflation Reduction Act incentives; the firm said its model is designed to be budget-neutral and that it guarantees savings.
The Ways and Means Committee on Jan. 23 heard a presentation from Rick Anderson of Verigee, the firm the city interviewed and tentatively selected to continue negotiations on a guaranteed energy-savings contract (ESPC).
Anderson told the committee Indiana Code IC 36-1-12.5 permits guaranteed-savings contracts and described a multi-step process: identify goals with city staff, conduct facility assessments, develop an ESPC scope, pursue financing, and implement improvements such as lighting and HVAC upgrades. He emphasized the firm seeks projects that are budget-neutral or better and noted federal incentives under the Inflation Reduction Act could cover 30% to 40% of solar or geothermal costs if the work is completed within the IRA timetable.
“If I don't meet the financial guarantee that I tell you I need to meet ... I have to write you a check,” Anderson said, describing Verigee's contractual guarantee and the annual audit process. He also said Verigee does solar maintenance and acts as general contractor in these projects, and that the firm seeks to use local, bondable subcontractors where feasible.
Chief Dumas and other staff described preparatory work: NIPSCO completed an energy audit of city facilities; staff will first undertake an assessment phase and return to the council with details and recommendations. Anderson said typical projects take nine months to a year from assessment to substantial completion; he warned that solar elements generally need to be installed by the end of 2027 to qualify for the IRA incentives he described.
The committee asked for municipal references, details on financing options and how contractors would be selected; Anderson said Verigee provided references and would manage RFQs and contractor selection on behalf of the city. Staff and the committee did not vote to commit funding; the committee advanced the selection step and requested additional specifics to return with an assessment and proposed contract language for council and Board of Works action.
