The Handbook of Municipal Bonds

CASE STUDY 3

Newport News Issues an Energy Savings COP

A. Theodore Palatucci J.P. McGowan & Company

 

 

 

For more than 15 years, the Federal government has encouraged its departments and agencies to install massive upgrades to their energy utilization infrastructure in an attempt to contain costs and expenditures for electricity and natural gas. Through various Executive Orders and Congressional legislative initiatives, a multitude of energy projects were developed and installed at governmental installations around the world. As might be expected, the Department of Defense has been among the largest implementing agencies. Projects for upgrades of energy infrastructure have taken place at major U.S. Air Force facilities both in the contiguous lower 48 states and in Alaska. The Army, Navy and the United States Marine Corps have all installed new lighting; heating, ventilation, and air conditioning (HVAC); fiber optics; heat pumps; swamp coolers; and other energy saving projects at shipyards, ammunition depots, and other bases throughout the country and at offshore facilities as well.

An interesting aspect of all this activity was the requirement for all of this new equipment installation to occur without the expenditure of capital on the part of government. The various service agencies were expected to effect the installation of massive amounts of new boilers, air conditioners, wiring, lighting, controllers and associated wiring, and so on, within the confines of their then-current ...