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U.S. Department of Energy Energy Efficiency and Renewable Energy

Utility Energy Service Contracts

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Launching a Utility Energy Services Contract (UESC): Getting to Yes!: Learn how to implement efficiency and renewable energy projects under a UESC by taking this FEMP eTraining course.

Memorandum for the Heads of Executive Departments and Agencies
On December 2, 2011, the White House issued a memorandum to the heads of executive departments and agencies committing the Federal Government to enter into a combined $2 billion in energy savings performance contracts (ESPCs) and utility energy savings contracts (UESCs) by the end of 2013. This commitment will help agencies meet the goals set by Executive Order 13514 on Leadership in Environmental, Energy, and Economic Performance in 2009. Read the full memorandum.

Utility energy service contracts (UESCs) offer Federal agencies an effective means to implement energy efficiency, renewable energy, and water efficiency projects.

In a UESC, a utility arranges funding to cover the capital costs of the project, which are repaid over the contract term from cost savings generated by the energy efficiency measures. With this arrangement, agencies can implement energy improvements with no initial capital investment. The net cost to the Federal agency is minimal, and the agency saves time and resources by using the one-stop shopping provided by the utility.

This section outlines utility energy service contracts as well as information and resources available to Federal agencies and their serving utilities. This information includes:

  • Types of Contracts: Typical contract and model agreements to expedite UESC project development and contract negotiations.

  • Laws and Regulations: Enabling legislation and executive orders encouraging Federal agencies to conduct UESCs, as well as legal opinions and guidance.

  • Getting the Best Value: Lessons learned and other resources to help Federal agencies get the best value and results from UESC project investments.

  • Federal Utility Partnership Working Group (FUPWG): Working group overview, member and partner contacts, and meeting notes.

  • Partnership Meetings: On-site partnership meetings and training on UESC requirements and processes.

  • Case Studies: Federal agency success stories outline energy management projects funded through UESCs.

  • Resources: Publications, related documents, software, and training offered by FEMP for Federal agencies and utility partners.

  • Contacts: FEMP and U.S. Department of Energy (DOE) national laboratory contacts available to help Federal agencies and utility partners with UESC implementation.