May 2007
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Honeywell to Help City of Quincy Cut Energy Costs by $1 Million Per Year, Use 25 Percent Less Electricity, Fuel

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Conservation Program First in Massachusetts to Use New Law to Deliver Significant Environmental and Financial Benefits to Community

QUINCY, Mass., May 18, 2007 – Honeywell (NYSE:HON) today announced a $32.8 million contract with the City of Quincy, Mass., for a conservation program that will reduce the city’s energy costs, improve its buildings and cut greenhouse gas emissions.

The 20-year contract is the first of its kind for a Massachusetts city since the state passed legislation — Chapter 11 of the Acts of 2006 — that allows municipalities to enter into long-term energy saving projects.

“This is a milestone energy conservation project not only for the City of Quincy, but also the state of Massachusetts,” said Mayor William Phelan. “We are extremely proud to be a municipal leader in the area of energy conservation. This program makes sense from an environmental and financial perspective.”

Under the contract, Honeywell will upgrade 40 of the city’s buildings and public schools. Quincy expects to cut costs by $1 million per year as a result of the energy-efficient improvements. Plus, the addition of a more accurate water metering system is expected to generate approximately $1.25 million in extra revenue. The city anticipates that the energy savings, which are guaranteed by Honeywell, and new revenue stream will pay for the entire program. So the work will not increase city operating budgets or require additional taxpayer dollars.

The program also will generate environmental benefits, reducing the city’s electricity use by an estimated 25 percent and fuel (natural gas and heating oil) use by 27 percent. The decrease in energy consumption is expected to curb more than 5.2 million pounds of annual carbon dioxide emissions. According to figures from the Environmental Protection Agency (EPA), this is equivalent to removing more than 500 cars from the road.

“Forward-thinking municipalities are recognizing the importance of having more efficient facilities and reducing their impact on the environment, and are able to make changes in a financially responsible way with a program like this,” said Kevin Madden, vice president of global sales at Honeywell Building Solutions. “We look forward to helping Mayor Phelan and all Quincy residents become more energy efficient and environmentally responsible.”

The city also has partnered with the EPA to be the first community in New England to take part in the Energy Star Challenge, an initiative to reduce energy consumption across residential, commercial and government buildings by 10 percent. Through its work with Honeywell, Quincy anticipates it will reduce energy use across its buildings portfolio by at least 25 percent, far exceeding the EPA guidelines.

Honeywell will make numerous building infrastructure improvements as part of the program. This includes heating, ventilation and air conditioning (HVAC) upgrades in 40 buildings and boiler replacements in 9 buildings that will enhance operational efficiency and provide greater comfort to building occupants; roof replacement in six buildings, and other building envelope improvements including window and door replacement, insulation, caulking and weather stripping in more than 30 buildings; and a lighting retrofit that will update 18,000 outdated lamps and ballasts across city buildings with new energy-efficient fixtures.

PlantPROCORE Honeywell will install a solar panel at the Lincoln Hancock Elementary School building that will heat the school’s pool as well, utilizing renewable energy technology to reduce utility costs and environmental impact. In addition, the pool will be fitted with a special cover to retain heat and reduce evaporation when it’s not in use, further enhancing energy efficiency at the school.

To tie the city’s new and existing building systems together, Honeywell will install its Enterprise Buildings Integrator, a control system that will allow city engineers to centralize and optimize energy management across all the buildings.

Along with the energy conservation measures, the city expects to increase budget revenue through improved water system metering. Specifically, Honeywell will replace more than 430 water meters at commercial sites. The meters will be networked through an automated meter reading system that will greatly improve reporting accuracy and generate a revenue increase as a result.

Honeywell expects to complete the facility improvements and install the water meters by August 2008. The company also will provide ongoing service, performance measurement and verification, and training as part of the contract.

Honeywell International is a $33 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London and Chicago Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit www.honeywell.com. Honeywell Building Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Building Solutions, access www.honeywell.com/buildingsolutions.
 

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