$8M Upgrades Save Montana State More Than $400,000 Annually
Montana State University says its first energy savings performance contract (ESPC), which was performed by McKinstry, has exceeded the guaranteed energy savings by more than 15 percent.
After an intensive energy audit in 2010 laid out numerous opportunities for utility savings, McKinstry’s Bozeman team began work on the $8 million project in 2013. McKinstry guaranteed annual savings of more than $370,000 from reductions in energy, water, steam, natural gas and peak demand. The company measured these savings for the duration of one year after the project’s completion and confirmed actual savings of $429,000 – 15 percent higher than guaranteed.
The initial savings were calculated using the state utility rates established when the energy audit occurred five years ago. Since then, regional utility rates have risen by roughly 7 percent, meaning the University is saving more in real dollars than the estimated annual savings measured by the company.
The first phase of work included mechanical and lighting upgrades in several auxiliary buildings on campus, including the Brick Breeden Fieldhouse. Two subsequent projects have been completed and their savings are currently being measured and verified.
Energy savings performance contracting legislation was enacted in Montana in 2007.
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