Pennsylvania University Implements $10 Million Performance Contract

TAC to Install Energy Saving Measures to Reduce Utility Costs by $900,000 Annually

DALLAS – June 4, 2007 – East Stroudsburg University of Pennsylvania (ESU), located in East Stroudsburg, Pa., has signed a $10 million performance contract with the Energy Solutions division of TAC. A world leader in building automation, security and energy solutions, TAC will provide facility upgrades to simplify operations and improve the comfort and efficiency of university buildings. TAC guarantees that ESU will reduce utility costs by more than $900,000 annually when the project is completed.

To resolve ESU’s energy, comfort and controls issues, TAC will install a variety of energy conservation measures (ECMs) impacting 1.4 million square feet of university space. These ECMs will include heating, ventilating, and air conditioning (HVAC) system improvements and installing direct digital controls (DDC) based on open protocols. Open systems allow building owners to integrate components from a variety of sources and tie them together to operate seamlessly. This will eliminate the university’s dependence on a proprietary vendor. TAC will also upgrade ESU’s boilers with controls and economizers, and will provide much-needed humidity control. Finally, energy efficient lighting and water saving plumbing fixtures will be added.

“This performance contract will not only save the university thousands of dollars, but will also enhance the quality of campus life,” said Scott Heinrich, manager of utilities at ESU. “Some of our facilities were so uncomfortable at times that members of the faculty were voicing complaints. In our Fine Arts Center, high humidity levels had the potential to damage musical instruments and art work as well as the building itself.”

TAC is delivering this project through performance contracting, a turnkey contracting method whereby the design, construction, commissioning and performance measurement are incorporated into one guaranteed fixed price. Improved facility efficiency and comfort are among the long-term results TAC delivers as the single provider accountable for all aspects of the project. 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. TAC guarantees the amount of savings the 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.

“Students, faculty and other staff at ESU will enjoy a better learning and working environment as a result of these facility updates,” said Wes McDaniel, vice president of TAC Energy Solutions. “The new open system controls will enable the staff to effectively manage mechanical systems to both increase comfort and save money.”

East Stroudsburg University, part of the Pennsylvania State System of Higher Education, offers 69 undergraduate major programs. Located on 213 acres in the East Stroudsburg community in eastern Pennsylvania, the university contains 61 campus buildings. These include academic facilities; a fine and performing arts center; eight residence halls, housing 2,200 students; and a 1,000-seat dining hall. Campus administrators called on TAC to provide energy savings and solve operational and comfort issues through improved building controls and HVAC equipment upgrades.

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 5,000 people worldwide, with partners and branches in 80 countries. TAC's parent company, Schneider Electric, is the world leader in automation and electricity management, with 112,000 employees worldwide and operations in 190 countries.

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