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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

School Districts’ Energy Performance Contracts (2013-MR-1)
We also released 8 letter reports to the following school districts: Downsville Central School District [pdf], Eldred Central School District [pdf], Fallsburg Central School District [pdf], Johnson City School District [pdf], Lansing Central School District [pdf], Middleburgh Central School District [pdf], Monticello Central School District [pdf], and Schoharie Central School District [pdf].


Released: April 11, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review the projected cost and energy savings achieved by energy performance contracts (EPC) entered into by eight school districts for the period of October 1, 1998 through August 21, 2013.

Background

An EPC is an agreement with an energy services company in which energy systems are installed, maintained or managed to improve the energy efficiency of, or produce energy for, a facility in exchange for a portion of the energy savings or revenues. The eight districts in this audit had nine EPCs that were initiated between February 2002 and August 2012 with total capital project costs of approximately $20.6 million.

Key Findings

  • Seven of the nine EPCs will achieve projected net savings but only six of the seven will meet the guaranteed projected energy consumption or cost savings. However, most of the savings will be the result of grants and/or State aid received to help finance the acquisition and installation of the capital equipment and assets used in the projects.
  • Three EPCs did not achieve the guaranteed cost savings; the districts did not have monitoring procedures in place over these EPCs.

Key Recommendations

  • Implement monitoring procedures to include reviews of energy consumption and related costs and compare these reviews to the EPC’s annual guaranteed energy cost savings.
  • If the guaranteed savings have not been met, consult legal counsel to determine whether action should be taken to recoup the difference.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236