2015 Regional Streetlight Procurement Program

DVRPC launched the first round of the Regional Streetlight Procurement Program (RSLPP) in 2015. Participants benefitted from reduced product and labor pricing, a common step-by-step program timeline and process, and technical and legal assistance in designing and implementing their projects. Program partners include the Pennsylvania Sustainable Energy Finance (PennSEF) program developed for the Pennsylvania State Treasury by the Foundation for Renewable Energy and Environment (FREE), and Keystone Lighting Solutions based in State College, PA.

2015 Regional Streetlight Procurement Program in detail

In October 2015, DVRPC developed a RFP on behalf of 45 municipal governments [pdf] who expressed interest in participating in round one of the RSLPP. This RFP competitively selected a single Energy Services Company (ESCO), Johnson Controls Inc (JCI). Each of the ESCOs that submitted proposals had been pre-qualified by the PennSEF program. The RFP also rigorously vetted each ESCO on pricing, design, and overall approach, and also included a technically-sound specification for streetlights, which allowed the program to lock-in pricing for much of the program.

DVRPC worked closely with the PennSEF team and technical consultant, Keystone Lighting Solutions to provide oversight of JCI throughout this process to ensure that they were providing transparent, clear, and cost-effective solutions in the Energy Performance Contracts developed for each municipality.

JCI provided each participating municipality with a free “preliminary” pre-contract audit that included an estimate of savings available through an LED conversion project.

Municipalities satisfied with the pre-contract audit entered into a Guaranteed Energy Savings Agreement (GESA) with the selected ESCO. The GESA provided:

  • An investment grade audit of the LED lighting retrofit that will demonstrate at least 90 percent of the savings identified in the pre-contract audit;
  • Highest quality LED fixtures at a price lowered due to the bulk purchase;
  • A guarantee of energy cost savings (additional savings will also be realized through operational and maintenance savings achieved throughout the life of the project);
  • Measurement and verification of energy savings achieved as a result of the project;
  • If requested, long-term, low-interest rate financing that is subject to appropriations and will not increase municipal debt (the financing will be self-funded through energy savings);
  • Unbiased technical support throughout the project by a competitively-selected third-party consultant as part of the program;

A pool of financing was arranged for the participating municipalities by PennSEF through Univest Bank. Of the participating municipalities 24 used financing through this pool, totaling $9.8 million.

The remaining 11 municipalities paid for their projects using internal funds.

Project results:

  • 35 municipalities proceed with a guaranteed savings agreement with JCI, while the remaining ten are likely to retrofit their outdoor area lighting to LED over time;
  • More than 26,000 LED outdoor lighting fixtures will be installed throughout the region in 2017; and
  • Together, these municipalities will save 10,600 megawatt hours, 5,500 metric tons of CO2 emissions, and $900,000 annually in energy and operational costs. $16 million net savings over 20 years.

A case study of this project was written by the Northeast Energy Efficiency Partnership, found here.

If you are interested in participating in round 2 of the RSLPP, or for more information about the program, please contact Liz Compitello, Senior Research Analyst, at DVRPC: ecompitello@dvrpc.org, or 215-238-2897.

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