FCIP Frequently Asked Questions (FAQs)

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Q: Who benefits when Energy Conservation measures are implemented?

A: Everybody benefits in terms of delaying the cost of new generation plants, cleaner air and a better environment. You benefit specifically from the reductions in your operating expenses and increased efficiency. This releases funds for other purposes.

Q: What is an "ESCO" and "performance contracting"?

A: An ESCO is an energy service company. ESCOs are the performance contractors. Performance contracting is a method for making capital improvements to a facility, and having a guarantee that the resulting operational savings will cover the debt service. Performance contracting allows for major upgrades to be completed within existing budgets because your payments are based on the savings you receive.

Q: What kind of savings can I expect to receive?

A: Depending on the systems installed and the type of facilities you have, the annual energy and maintenance savings can be substantial--a good target is 15% to 25% of your current operating costs.

Q: Where do I find the funds to pay for the services that save me money?

A: The funds are in your own budget in the form of inflated energy expenses. You may be wasting energy and valuable funds if your buildings do not have modern equipment and systems! We can finance the improvements with your pledge to repay the lease back from your savings.

Q: What is the financing tool?

A: Because you're eligible for tax-exempt lease purchase financing, you will secure funds at very attractive tax-exempt rates with no down payment. This is a capital lease structure with a $1 at the end of the lease term.

Q: What are some of the major steps involved in completing the project?

A: First of all, you'll want to contact us to let us know you are interested in saving energy and money through our Facility Conservation Improvement Program. We can refer you to several ESCOs, who will send an energy company professional out to your complex to do a walk through of your facility and identify systems that could be improved upon. The ESCO will then do a cost/benefit analysis and provide you with results on how implementing these changes will save you money. Finally, we will set up a customized financing structure that fits your needs. Once the plan is approved and documentation is completed, you'll be on the road to saving money!

Q: Where can I get more information?

A: Feel free to email or contact him at by calling (785) 271-3152.