The fresh ink on the Tennessee Board of Regents’ finalized contracts with Energy Services Companies promises refreshing changes to campus that include better lighting, a more efficient chiller system and reduced electric rates.

TTU is poised to capture a major share of the $25 million available through the TBR for the Middle Tennessee region to improve our energy-related infrastructures. With this new method of funding called “performance contracting,” every penny saved by lower utility bills can be used by the university to reinvest in future energy-related improvements. In performance contracting, each group of projects is labeled a “delivery order,” from proposal to completion.

“Our first delivery order will investigate energy saving projects for lighting retrofitting, an improved chiller system and distributed generation using new diesel generators,” says Larry Wheaton, facilities engineer.

Wheaton says the campus community can expect a lighting audit for all academic buildings to begin April 26. Contracted lighting auditors, accompanied by TTU staff during all visits, will take a survey of all lighting fixtures.

“A similar lighting audit recently conducted at another TBR university resulted in improvements that pleased a great number of professors,” says Wheaton.

The extent of lighting retrofitting will be determined by a two-to-three month detailed energy study that will also reveal the exact plan of action for improving the chilled water system and installing diesel generators. A final proposal for our first delivery order will be reviewed and approved by the university before the contractors start work.

The campus’ central chiller system will be upgraded to properly cool water, distribute that water effectively and deal with humidity. New insulation will also eliminate pipe sweating and increase efficiency.

New diesel generators for distributed generation of electricity will offer some of the greatest savings in terms of allowing us to purchase electricity at a reduced rate. But that’s not the only advantage the new generators will bring.

“There are two large benefits to using distributed generation,” says Wheaton. “First, we will be able to buy electricity at a significantly reduced rate, saving as much as 40 percent on our current bill. Second, in times of emergency power outages, we will be a refuge for the community because of the system’s ability to provide backup electricity in case of a power outage due to storms or other disasters.”

Wheaton emphasizes that performance contracting follows standard TBR documentation and construction procedures, simply blending those processes and standards with the new project components. The TBR expects $78 million or more in savings systemwide over the next five years.

Based on conservative estimates, our first phase of projects is expected to cost about $6.2 million, resulting in annual energy savings and rate reductions of more than $800,000 a year. However, these savings from existing utility budgets will be used for retiring the indebtedness.

While the immediate improvements will reduce energy consumption and costs, as well as improve the comfort and usability of campus buildings, there’s a long-term benefit as well from this new way of paying for utility improvements.

"Performance contracting allows us to pay for these types of improvements without putting them on the TBR’s capital improvements list,” says Wheaton. “As these projects are eliminated from the list, it’s more likely other capital projects will be funded much sooner.”