Onsite Energy Corporation has executed the Fourth Amendment to its Master Energy Efficiency Services Agreement with the City of San Diego to proceed with a comprehensive US$3.6 million energy project at the city’s Police Department Headquarters building.Carlsbad, California – March 18, 2003 [SolarAccess.com] The project will incorporate both energy efficiency measures designed to reduce consumption and solar photovoltaic (PV) and combined heat and power (CHP) systems that are expected to produce over 60 percent of the electricity that the building currently consumes. Under the Fourth Amendment, Onsite will deliver a turnkey energy efficiency project that is projected to save the city approximately one million kWh of electricity and 11,000 therms per year of natural gas and a CHP project that is expected to generate 3.5 million kWh of electricity and produce thermal energy in the form of hot water and chilled water that will displace energy that otherwise would be provided by the building’s conventional systems. The PV system is projected to produce an additional 45,000 kWh per year. The project scope includes design engineering services, project and construction management and procurement of energy efficiency and power generation equipment and installation of the equipment necessary to implement the energy efficiency measures and the CHP system. Onsite also will provide ongoing operations and measurement and verification services to the project. The city will not have to provide any up-front capital for the project because it will apply funds that it otherwise would pay in utility bills for the energy saved and produced toward the financing costs of the project. The project is the fourth phase between the city and Onsite, and will utilize tax exempt financing over a 12-year period. The resulting financing costs are expected to be less than the energy savings guaranteed by Onsite. In addition to producing over an estimated 3.5 million kWh, which represents over 80 percent of the building’s remaining electricity use after the energy efficiency measures are implemented, the CHP system also will supply hot water and chilled water for space conditioning and domestic hot water to the building. This is expected to further reduce the building’s energy consumption by approximately 27,600 therms and 633,000 kWh per year. Energy efficiency measures to be implemented include upgrades of the facility’s energy management and control system, lighting and lighting control system, and the facility’s HVAC systems, and will also include solar control film installed on the building’s windows designed to minimize air conditioning power requirements and heat loss. The project is expected to be complete by year-end 2003. The project is expected to benefit from approximately US$718,000 in utility incentive payments available as a result of participation in state and utility sponsored programs that provide cash incentives for CHP, PV and energy efficiency capital improvements. In addition to incentive funds earned, the city is expected to reduce its expenditures for purchased electricity and natural gas by as much as US$8.4 million over the 12-year financing period. After paying for financing costs and operating costs for the CHP system, the city is expected to save over US$1.8 million in energy costs over the first 15 years of operation.