Monday, January 12, 2009

$900 Million in Energy Conservation Contracts Awarded by the U.S. Army Corps of Engineers

/PRNewswire-FirstCall/ -- The U.S. Army Corps of Engineers recently announced the awarding of sixteen contracts for energy conservation measures under the Energy Savings Performance Contracts (ESPC) program. These contracts are third-party financing tools to help achieve mandated energy reduction goals in accordance with the National Energy Conservation Policy Act. The contracts are to be used for government installations or facilities throughout the Continental United States, Alaska, Hawaii, District of Columbia, U.S. Territories and possessions. The contracts have a five-year base ordering period and one optional five-year ordering period with a possible payback period of up to twenty five (25) years from the time of award. The total capacity of these contracts is $900 million which is split between sixteen Energy Service Companies (ESCOs).

The Federal Government is the largest single user of energy in the United States and these awards demonstrate its commitment to sound government stewardship by recognizing efforts to save energy, reduce federal energy costs, cut greenhouse gas emissions, promote cutting-edge technologies, strengthen national security and create a stronger economy. Lime Energy's (NASDAQ:LIME) subsidiary, Applied Energy Management (AEM) has a long history of servicing ESCOs under ESPC and Indefinite Delivery Indefinite Quantity (IDIQ) programs. Last month the Department of Energy (DOE) announced the award of $80 billion under a new set of IDIQ programs to sixteen ESCOs that include current AEM customers.

"AEM has been serving ESCOs through IDIQ and ESPC contracts for over 12 years," stated John O'Rourke, President and CEO of Applied Energy Management, a subsidiary of Lime Energy. "We currently work with 10 of the 16 ESCOs awarded contracts by the Army Corps of Engineers and hope to develop relationships with additional companies as part of this new program. In addition to our experience in energy efficiency, we are also looking forward to incorporating our renewable energy construction experience in geothermal, solar and biomass for projects under the new program."

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