Cincinnati performing cost-saving energy upgrades in 39 City buildings

Earlier this year the City of Cincinnati entered into its first Energy Services Performance Contracts with Ameresco and Honeywell.  Those contracts will involve the implementation of $5.6 million worth of energy efficiency upgrades in 39 City buildings including City Hall, the Duke Energy Convention Center, Centennial 2, and most of the City's police and fire stations.

Many of the energy efficiency projects have already been completed while others are proceeding rapidly according to the Office of Environmental Quality (OEQ).  The efficiency improvements are projected to generate at least $427,740 annually in energy savings for the City, with contractual guarantees from vendors that these projects will save at least as much money as they cost in each year of every year of the multi-year agreement.  If not, the vendors must write a check to the City for the difference.

"Energy efficiency projects are a great opportunity for the City," said Mayor Mark Mallory.  "In a tough economy, we have to be smarter about how we spend City money.  The upgrades save money, help the environment, and put Cincinnati residents to work, and it doesn't cost the taxpayers a dime."

The contracts for the energy efficiency upgrades are innovative in their funding structure as the vast majority of the upfront capital costs are paid for through guaranteed energy savings over the course of the project.  Of the $5.6 million in energy efficiency upgrades included in these contracts, nearly $4.5 million was paid for through realized energy savings while the rest was paid for through a combination of grants and rebates.

While the economic impacts are profound, the environmental impacts are even better as the upgrades will reduce the City's energy use by 3,290,539 kWh, generate 45,817 kWh of renewable energy, and reduce greenhouse gas emissions by 3,413 metric tons each year.

"When the lighting, heating and air conditioning, building automation and building envelope upgrade work is completed, energy use will be reduced by more than 3.2 million kilowatt hours, and we'll reduce greenhouse gas emissions by more than 3.4 million metric tons - the equivalent of taking 614 cars off the road for a year, or planting 87,000 trees," said City Councilmember Roxanne Qualls.

One project in particular at City Hall that has installed storm windows inside existing single pane aluminum frame windows, and tinted films on windows that receive intense summer sun.  This single project cost $406,500 up front and will generate a minimum of $26,000 annually in energy savings for the City.

The City and the Office of Environmental Quality used a combination of rebates, incentives, and projected energy savings from the project to pay for the upfront capital costs.  The OEQ also emphasizes that none of the money used for this project has come from the General Fund or was paid for using City tax dollars.  The OEQ expects more contracts to follow as additional savings and upgrades can be realized.

Writer: Randy A. Simes
Photography by Scott Beseler
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