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Army Surpasses $1B Mark for Utility Energy Service and Energy Savings Performance Contracts

transmission tower against the sun during sunsetThe U.S. Army Materiel Command’s Anniston Army Depot has awarded a utility energy service contract that clinched the service branch’s $1 billion mark in energy savings performance contracts.

The Army said Thursday the contract will help Anniston run operations and support the depot’s readiness efforts as well as the service branch’s response to President Barack Obama’s challenge for all federal agencies to achieve a total $4 billion in investments before the end of 2016.

“These contracts are important to the Army … Federal agencies like the Army can leverage their utility budgets and take the steps essential to enhancing resiliency, achieving cost savings, and improving operations and maintenance,” said Katherine Hammack, Army assistant secretary for installations, energy and environment.

The $20 million contract, the service branch’s 127th ESPC award, pushed the total budget allotted to individual contracts and task orders to $1.015 billion which represents 68 percent of the Defense Department‘s efforts to respond to the president’s challenge.

These energy usage contracts collectively equate to an approximate of 12.7 trillion British thermal unit energy savings annually which can power almost 350,000 average U.S. households per year.

The service branch added that private investors use their own funds for modernization and implementation of energy and water efficiency strategies as well as renewable energy systems on Army installations that the service branch will return through part of the utility cost savings achieved from the projects.

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