Federal Energy Management Program

Financing Working Group

Objectives

For the past 3 years, but most intently since late 2003, agencies and congressional oversight organizations have been scrutinizing the financial aspects of the ESPC transaction. The primary intent was to determine if agencies were getting the best value in the financing of the projects. FEMP established a working group, chaired by Skye Schell of DOE, to explore the issue of financing in ESPC projects and to determine if opportunities existed for reducing ESPC financing costs. The findings of the working group led to FEMP's conclusion that financing costs for federal ESPCs could be reduced by requiring ESCOs to solicit multiple financing offers and select the best one, and ensure that more financing-related information is included in the ESPC project package. The working group recommended a short term solution, addressing actions agencies can take immediately to reduce financing costs, in the form of modifications to the DOE Super ESPC IDIQ contracts.

Working Group Members

Co-Chairs: Skye Schell and Patrick Hughes
Robert Baugh, Oak Ridge National Laboratory
Doug Dahle, National Renewable Energy Laboratory
Jeff Dominick, National Renewable Energy Laboratory
Patrick Hughes, Oak Ridge National Laboratory
Linda Mesaros, Mesaros Consulting, Inc.
Schuyler Schell, U.S. Department of Energy, Federal Energy Management Program
Tatiana Strajnic, U.S. Department of Energy, Federal Energy Management Program
Robert Tomiak, Office of DUSD (Installations & Environment)

Results

Report of the Finance Cost Reduction Working Group to the Federal ESPC Steering Committee
Reducing Financing Costs for Federal ESPCs.

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Last Revised: Monday, January 24, 2005 1:02 PM