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NORESCO to Improve More Buildings for Alabama Department of Corrections with Energy Savings Performance Contract



NORESCO, a national leader in energy efficiency and energy infrastructure solutions, has increased its energy savings performance contract with the Alabama Department of Corrections (ADOC) to include two new phases of work totaling an additional $22.4 million investment. NORESCO specializes in the development, design, construction, financing and operation of energy and environmental efficiency projects, and is a unit of Carrier Corp., a business unit of United Technologies Corp. (UTX).

Energy conservation measures at ADOC facilities in Phases 2 and 3 of the project are funded by excess guaranteed savings from the original phase of work and incremental guaranteed savings over the life of the 20-year contract.
Phase 2 features improvements that include heating, ventilation and air conditioning (HVAC) upgrades, new domestic hot water systems and new roofs at selected locations. Phase 3 centers on improvements to buildings on the Wetumpka campus that ADOC previously acquired from the Alabama Board of Pardons and Parole, which will serve as a minimum security facility for women. The Phase 3 project will decentralize heating and cooling systems, improve water conservation and upgrade lighting.

The projects broaden ADOC’s initiative to address deferred maintenance problems created by limited capital improvement budgets, inefficient buildings, outdated systems and worn out equipment, and limited staff resources to manage and maintain facilities and equipment. Because energy savings performance contracts are structured to pay for themselves with guaranteed savings from energy reductions, ADOC can make needed repairs and improvements without additional funds from Alabama taxpayers.

The original $27.2 million contract between ADOC and NORESCO included more than $11 million in funding from the American Recovery and Reinvestment Act of 2009 (ARRA) through the Alabama Department of Economic and Community Affairs. Key energy conservation measures included central plant upgrades, mechanical upgrades, lighting upgrades and water conservation improvements.

"When the original contract was signed in 2010, ADOC and NORESCO were already at work to identify the best way to deploy the additional guaranteed savings that would result from the contract. With Phases 2 and 3, ADOC invests the balance of project savings to improve building and systems even more,” said Chuck Hoppe, senior account executive, NORESCO.

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As one of the largest U.S. energy services companies, NORESCO specializes in the development, design, construction, financing and operation of energy and environmental efficiency projects, performance contracting and central energy plants. In addition to state government agencies, NORESCO clients include federal government agencies, universities, local governments, school districts, hospitals, industrial and commercial businesses. NORESCO has implemented more than $2.5 billion in energy savings at more than 2,000 sites throughout the U.S. and abroad. NORESCO is a subsidiary of Carrier Corp.

About Carrier Corp.
Carrier Corp. is the world’s leader in high technology heating, air-conditioning and refrigeration solutions. Carrier experts provide sustainable solutions, integrating energy efficient products, building controls, and energy services for residential, commercial, retail, transport and foodservice customers. Founded by the inventor of modern air conditioning, Carrier improves the world around us through engineered innovation and environmental stewardship. Carrier is a unit of United Technologies Corp., a leading provider to the aerospace and building systems industries worldwide.


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