Energy Efficiency Saves USPS $110 Million

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The U.S. Postal Service recently began a program designed to save millions of dollars in energy costs.

Under the Shared Energy Savings effort, the USPS awarded 10 energy conservation contracts totaling an estimated $1.3 billion to six companies that will receive a percentage of the dollar savings attributable to the projects in return for assuming all implementation costs.

These contracts will help the USPS avoid an average of $11 million a year in energy costs over 10 years. Energy expenditures are a significant part of the postal service's annual budget, USPS officials said. In fiscal year 2005, energy costs were about $550 million, not including spending for heating and transportation fuels.

The suppliers in this award are BGA Inc., Tampa, FL; Chevron Corp., San Francisco; Con Edison Solutions, White Plains, NY; Energy Services Group, Wayzata, MN; Honeywell Inc., Saugus, MA; and Noresco LLC, Westborough, MA.

Under the contracting process, energy conservation measures are identified, financed and installed by the supplier. These measures can include anything from use of renewable energy sources, such as wind power and geothermal heat pumps, to combined heat and power, lighting retrofits and energy-efficient building controls.

This program benefits facilities nationwide, said Susan Brownell, USPS vice president of supply management. It also aims to produce environmental benefits and improve facility conditions for employees and customers.

"Recognizing that the implementation of energy conservation measures can reduce costs significantly, the [USPS] established the Shared Energy Savings contracting mechanism not only to trim energy dollars, but also to improve energy efficiency," she said.

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