Energy Systems Group to Implement Energy Savings Program at the Veterans Affairs Palo Alto Health Care System

PALO ALTO, CA--(Marketwired - Sep 4, 2014) - Energy Systems Group (ESG), a leading energy services provider and wholly owned subsidiary of Vectren Corporation (NYSE: VVC), has been awarded a $7.8 million Energy Savings Performance Contract (ESPC), by the U.S. Department of Veterans Affairs (VA), to implement an energy savings program at the Veterans Affairs Palo Alto Health Care System (VAPAHCS). The VAPAHCS maintains one of the top three research programs in the VA, and operates nearly 900 beds, including three nursing homes and a 100-bed homeless domiciliary, all of which serve more than 85,000 enrolled Veterans.

This ESPC program will provide the VAPAHCS with two new 1,055-ton high-efficiency chiller units to replace outdated equipment in the Building 100 (hospital and clinics) chiller plant; nearly 9,000 energy efficient light-emitting diode (LED) lamps across most of the campus; nearly 600 wirelessly-monitored LED emergency exit signs; more than 500 occupancy and daylight sensors to maximize energy savings; and energy-saving improvements to the campus steam distribution system.

Under the contract agreement, Energy Systems Group will provide the necessary program management, design and construction services, training, operations and maintenance services, performance monitoring and verification, equipment repair and replacement, and arrangement of financial services to meet the needs of this project.

This program will help the VA achieve the President's goals for energy efficiency in Federal buildings by reducing annual energy consumption at the VAPAHCS by a total of 23,289 million British Thermal Units (Btus) per year, including nearly 6 million kilowatt-hours of electricity and 3,750 million Btus of natural gas. This reduced energy consumption will result in approximately $880,000 of savings annually. The project will be financed through a private-sector firm and backed by ESG's energy savings guarantee.

This project marks ESG's first federal ESPC contract since its acquisition of Chevron Energy Solutions' (CES) federal sector energy services unit, in April 2014. ESG is now one of 16 approved "Super ESPC" contractors that have been awarded indefinite-delivery, indefinite-quantity (IDIQ) U.S. Department of Energy (DOE) ESPCs, based on demonstrated capabilities to manage the development and implementation of multiple ESPC projects worldwide. Strongly positioned to develop projects across the full spectrum of federal contracting opportunities, ESG is an industry leader in developing and implementing federal government projects with 13 utility partners under Utility Energy Services Contracts, and through public / private partnerships such as Enhanced Use Leases. 

Energy Systems Group (ESG), a wholly owned subsidiary of Vectren Corporation (NYSE: VVC), is a leading energy services provider that specializes in energy efficiency, sustainability, and infrastructure improvement solutions in the government, education, healthcare, commercial, and industrial sectors. ESG also offers a full range of sustainable infrastructure solutions including waste-to-energy, distributed generation, and renewable energy. To learn more about ESG, visit www.energysystemsgroup.com.