DECEMBER 2023 THE CONSTRUCTION SOURCE AMERICA - EAST 8 | City of Cincinati capture twice as much energy output over this year. The city has negotiated a 20-year deal with a company known as Solar Power and Light (SP&L). In a move that will not cost Cincinnati one red cent, SP&L plans to build, operate and maintain solar power facilities at its own expense. In turn, the city will purchase energy from SP&L at a cost that is less than what they now pay. “This enables us to better budget for future energy cost, is a hundred percent green, and even in Cincinnati where there is cheap coal, we can Less than $2 million of City capital funds were used to leverage over $14 million of energy efficiency work through an energy services performance contract. City of Cincinnati Fact Sheet 2009/2010 Energy Services Performance Contracting Background Like most cities, the City of Cincinnati is challenged by its aging facilities and limited capital funds. Most of the facilities were built at a time when energy and operational expenses were not a major factor in building design and most are now in need of technology and comfort upgrades. What is Energy Services Performance Contracting? State of Ohio enabling legislation introduced in 1994 (and amended in 2008) allows municipalities to fund capital improvements with energy and operational savings through a guaranteed performance based contract. The installation of energy savings measures can be financed by Ohio municipalities over the average useful life of the equipment, typically 15 years, and is not included in the calculation of the municipality’s net indebtedness. How is the City of Cincinnati Currently Using Energy Services Performance Contracting? The City owns/operates nearly 400 buildings. Energy audits of key buildings have been conducted at 88 buildings to date, including City Hall, the Duke Energy Convention Center, and facilities operated/managed by Fire, Police, Recreation, Health, Parking, Lunken Airport, and Public Services. Nearly $15 million of energy efficiency upgrades in 69 City facilities was leveraged by about $1.7 million of City capital and $1.1 million of Energy Efficiency and Conservation Block Grant funding. When all the lighting, heating and air conditioning, building automation, and building envelope upgrade work is completed, City energy use will be reduced by more than 10.1 million kWh and energy costs will be reduced by over $1 million per year. The work will also generate 100,000 kWh of renewable energy and reduce greenhouse gas emissions by 8,929 metric tonnes. How did the City Fund the Current Performance Contracts and what are the expected Environmental and Financial Benefits? Year Total Project Costs City Financed w/Energy Savings City Capital Duke Energy Rebates/State Grants Federal Grant Funding State Grant Funding Annual Energy Reduction Annual Energy Generation 2009 $5,908,691 $4,511,652 $469,000 $190,172 $334,930 $402,937 3.8M kWh/ 116,213 ccf 100,000 kWh 2010 $8,810,640 $6,515,953 $1,238,737 $253,574 $802,376 0 6.3M kWh/ 33,907 ccf 0 TOTAL $14,791,331 $11,027,605 $1,707,737 $443,746 $1,137,306 $402,937 10.1M kWh/ 150,120 ccf 100,000 kWh City of Cincinati | 9 save money too,” says Falkin. There are other benefits in the way of improving air quality. Granted, Cincinnati is free of conditions that plague communities from California and Texas to New York, but it too wrestles with issues unique to its environment. Abundant coal means abundance of energy generated from coal. Though companies employ what Falkin describes as “reasonably good” measures to control air pollution, it can still be done better. In fact, some plants are already relying more on a mix of Cincinnati and Southwest Ohio lead the state in the number of renewable energy generating sites Annual GHGE Reduction City’s Annual Energy Savings 3,437 metric tonnes $449,344 5,492 metric tonnes $587,527 8,929 metric tonnes $1,036,871
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