U.S. Postal Service Saves $110 M Using Renewable Energy

Ten energy conservation contracts issued under the Postal Service’s Shared Energy Savings (SES) program will help the United States Postal Service (USPS) avoid an average of $11 million a year in energy costs over 10 years — for a total savings of $110 million.

Under the SES contracting process, energy conservation measures are identified, financed, and installed by the supplier, and include the use of renewable energy sources, such as wind power and geothermal heat pumps, combined heat and power, lighting retrofits and energy- efficient building controls. The contracts, with an estimated value of $1.3 billion, were awarded to six companies that will receive a percentage or “share” of the dollar savings attributable to the projects, in return for assuming all implementation costs. “Recognizing that the implementation of energy conservation measures can reduce costs significantly, the Postal Service established the Shared Energy Savings contracting mechanism not only to trim energy dollars, but also to improve energy efficiency. This program was also designed to produce environmental benefits and improve facility conditions for employees and customers,” said Susan Brownell, USPS, vice president, Supply Management. The SES suppliers included in this award are BGA, Inc. (Tampa, FL); Chevron Corporation (San Francisco, CA); ConEdison Solutions (White Plains, NY); Energy Services Group (Wayzata, MN); Honeywell, Inc. (Saugus, MA); and Noresco, LLC (Westborough, MA). According to Postal Service officials, energy expenditures are a significant portion of the annual Postal Service expense budget. In FY2005, energy costs were approximately $550 million, not including costs for heating and transportation fuels. Since 1775, the USPS, an independent federal agency that visits more than 144 million homes and businesses every day, receives no taxpayer dollars for routine operations, but derives its operating revenues solely from the sale of postage, products, and services.
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