ROCK ISLAND ARSENAL, Illinois -- (June 16, 2016) On June 16, the Rock Island Arsenal Garrison received a $240,219 rebate check from Mid-American Energy Company. The check was for the Garrison's Energy Savings Performance Contract energy improvements for eight buildings that were part of the decentralization of the central heating plant, as well as six individual LED lighting efficiency improvement projects developed by Public Works for buildings 222, 230, 240, 299, and street lighting.
It is likely, later this year, another rebate check in the approximate amount of $167,000 will be received from the utility for other energy efficiency improvement projects completed this year. This is not the first rebate check the Garrison has received nor the last.
The utility rebates are a result of a formal partnership with the Mid-American Energy Company which follows the rules set forth by the Illinois Commerce Commission. The ICC rules provide a method for customers to receive the benefits of custom and prescriptive financial rebates for qualifying efficiency improvements in lighting, building shell, motors, variable speed drives, heating, and air conditioning. The utility partnership also provides for the installation specialized energy consultant assistance hired by the utility company, project planning meetings between the customer and the utility, project site visits, formal building energy audits resulting in audit reports, and energy consultant inspections at project completion to assure all the improvement were completed and qualify as constructed for the financial incentives as previously planned.
The rebates and assistance are financed through a small percentage paid by the customer each month through utility bill payment. This method of financing is a result of energy efficiency tariffs imposed by the ICC. The Garrison qualifies for these benefits because the command uses natural gas and electricity purchased from the utility company and its energy improvement project qualifies for rebates and assistance. In the past, most of the Garrison buildings were heated by steam from the coal-fired central heating plant, and did not qualify because the source of energy was not from its utility company.
In many cases, the financial incentives are necessary to justify the approval for an energy improvement project. Project planning determines the design; estimated project cost; financial incentive; annual energy, operation, and maintenance savings. Then a life cycle analysis is used and determines the payback in years. For example, for Building 210 mentioned previously there was a $125 per LED light fixture prescriptive rebate resulting in a 9.9 year payback, which was acceptable, but without the incentive, the payback would have been 25 years, which is longer than the life of the light fixture and the project could not be justified. Sometime, projects are evaluated using the custom rebate process, and in the case of one building, 70 percent of the project cost was financed by rebate incentives.
Recent policy changes allow the installations within the fiscal year to re-invest the rebate funds into new energy projects. The Garrison is presently doing this and has 10 LED lighting project in a queue which further takes advantage of even more financial incentives during the second cycle of project investment. Projects that have already been financed with this year's rebate funds are LED lights on Government Bridge, exterior lights around buildings 102-104, and 295 LED lamps in Building 240. Some of the major projects in the queue are new LED lights for buildings 22, 112, 210, 225, 351, fitness center, and exterior lights at the hydro dam.
The Garrison also participates in the utility's electrical curtailment program that benefits the installation as much as $50,600 a year. In the case of Rock Island Arsenal, the Garrison signs a curtailment contract with the utility in the early spring to use its 1,000 KW generator during a peak alert. During a hot day, during the months of June through September, the utility may require the installation to turn on the electrical generator. The utility can request the Garrison as many as seven times in a season or only once. In any case, it receives the same amount at the end of the curtailment period as long as it faithfully fulfills its contracted agreement.
The energy efficiency partnership and rebate program with Mid-American Energy has been very beneficial to the installation to assist with achieving its energy and cost reduction goals, and the Garrison looks forward to continue its successful partnership.
Related Links:
US Army Garrison Rock Island Arsenal
Assistant Secretary of the Army for Installations, Energy and Environment
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