Texas City Implements $800,000 Energy Saving Performance Contract

Dallas – March 11, 2008 – The city of Lufkin, Texas, is implementing $872,500 in facility enhancements designed to improve operations, comfort and efficiency in seven city buildings comprising 134,392 square feet. The Energy Solutions division of TAC, a world leader in energy services, building automation and security, will complete the work as a performance contract with the city. TAC guarantees that Lufkin will reduce its utility costs by more than $102,000 annually when the project is completed.

Lufkin, a city of 33,000, located 125 miles north of Houston in east Texas, faced ever-increasing utility costs. The city also wanted to lead by example in promoting green practices, such as energy efficiency. In addition, aging mechanical equipment in many city facilities was not providing adequate occupant comfort within the buildings.

“This performance contract with TAC allows the city of Lufkin to make essential improvements to our facilities,” said Paul Parker, Lufkin city manager. “Since we are trading the money we were spending on utilities to complete the work, the city’s overall budget will not be impacted to provide our employees with a more comfortable workplace. Furthermore, the city sets an excellent example of environmental concern and demonstrates that going green can be very cost-effective.”

Performance contracting is a turnkey method whereby the design, construction, commissioning and performance measurement are incorporated into one guaranteed fixed price. Improved facility efficiency, comfort, financial management and environmental protection are among the long-term results TAC delivers as the single provider accountable for all aspects of the project.

TAC guarantees the amount of savings performance contracting projects will achieve and agrees to pay the difference if that amount is not realized. Typically, new, more efficient equipment and upgraded facility automation systems generate the utility savings, as well as maximize energy efficiency and improve occupant comfort. Performance contracting projects are funded in a variety of ways, including general obligation bond funds, maintenance reserve funds, and financing secured against guaranteed energy savings.

[an error occurred while processing this directive] To reduce utility costs, save energy and improve comfort, TAC will install a variety of energy conservation measures (ECMs) in Lufkin’s buildings. A citywide lighting retrofit will replace older, inefficient fluorescent lighting with new, long-lasting, efficient fixtures. A new energy management system (EMS) will allow city staff to monitor and control mechanical systems, such as heating, ventilation and air conditioning (HVAC) at various city facilities from a single workstation. The EMS will streamline operations and maintenance while providing precise control of indoor environmental conditions.

Lufkin City Hall will receive a central plant redesign that will enable the system to operate more efficiently. This new design will enable the central plant to operate independently or in conjunction with Police Department HVAC systems. This solution will allow systems to be optimized during after-work hours when the City Hall portion of the building is closed, but the Police Station is still occupied. Multizone HVAC systems will be modified to variable air volume (VAV) systems to improve efficiency and comfort, while a new outside air intake unit at City Hall will improve indoor air quality and create a healthier environment for employees.

“Through this performance contract, the city of Lufkin will obtain the infrastructure improvements it needs without diverting funds from services for its citizens,” said Wes McDaniel, vice president of TAC Energy Solutions. “TAC delivers performance contracts that put the needs of customers first and offer accountability on all levels, while providing turnkey solutions to reduce the energy and operational inefficiencies of building systems. To provide enduring performance, TAC uncovers the causes of facility energy issues and focuses on diagnosis and education to ensure that each project minimizes the customer’s risk, while delivering relevant business value,” he adds.

About TAC
TAC is a leading provider of building automation solutions based on Open Integrated Systems for Building IT. TAC's mission is to provide added value through building environment services for indoor climate, security and use of energy, delivered with advanced technology to end users and property owners throughout the world. With over 80 years of experience in the HVAC, building automation and security arenas, TAC employs more than 7,500 people worldwide, with partners and branches in 80 countries. TAC's parent company, Schneider Electric, is the world’s power and control specialist with 112,000 employees worldwide and operations in 190 countries. Visit www.tac.com

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