FESCO’s energy as a service (EaaS) platform is a technically and financially feasible method to deliver new energy systems without initial customer CAPEX needed for installation. Additionally, having the equipment owned by FESCO increases the likelihood that high-quality systems and an abundance of maintenance will be provided. The more efficient and crucial the equipment is, the less likely it is to fail and affect profitability for both the customer and FESCO.

EaaS utilizes existing legislative, regulatory, and other federal- or state-based authorities in ways that have historically been underutilized and that are permissible under federal acquisition regulations. 

Through the EaaS approach, FESCO will design, own, operate, and maintain power/thermal generation, energy storage, HVAC, compressed air, and renewable energy systems based on your energy demands, thus becoming a non-tariffed based Utility. This design will ensure the supply of energy through an “obligation to serve” agreement that delivers energy matching the type and volume desired. The customer is charged a negotiated fee for capacity and usage. This is cost-effective for customers because FESCO can take all incentives and tax benefits associated with the system that would otherwise not be available. 

EaaS boasts a number of benefits to customers: 

  • EaaS is scalable and replicable. Whether EaaS is for heating, cooling, electricity, air, or other Utility services, these systems can be scaled both up or down across large campuses. 
  • EaaS can be executed rapidly for non-federal and federal customers through our Alaskan Native Corporation 8(a) entity, which can receive up to a $100,000,000 DOD task order, or a $22,000,000 civilian task order award without a J&A. For federal customers FESCO has solved the issue of complex lease/easement rules to enable fast project delivery. 
  • Third, there is reduced financial risk to customers and increased simplicity of contracting. Under EaaS the financial burden to build and operate energy systems flips from the customer to FESCO. EaaS unit prices for electricity, cooling ton hours, MLBs of steam, and CFM of compressed air are set at a unit rate that is less than your current expenses. All the while, this increases resiliency of current energy systems.  
  • EaaS is consistent with a customer/agency procurement requirements. At the end of the contract term, the customer/agency can choose to: (1) extend the term of the contract, (2) require FESCO to remove the equipment, or (3) have FESCO sell the assets to the customer/agency at Fair Market Value (FMV). In some instances, depending on the jurisdiction, the FMV calculation can include a discount factor equal to the cost to remove the asset. 

For Our Federal Customers

Information the U.S. Government should provide to prospective vendors for EaaS.

Noting that data is often sensitive and should be disclosed with the proper precautions, the following partial list of datasets is helpful, but not required, for determining an accurate financial pro forma for a proposed site-specific or installation-wide energy resilient project at a particular installation:

  • 15-minute load data over the preceding two years for chilled water systems, and building-level load data if available for critical assets,
  • Electric, gas, steam, water, and communication one-line diagrams,
  • Real estate property conditions,
  • Environmental use restrictions, known risks and hazards, and current existing mitigation efforts along with any applicable state or federal permits,
  • Explosive ordinance restrictions and arcs, and associated wireless communication restrictions,
  • Electricity, gas, and water utility bills for each month over the preceding two years,
  • The existing tariffs for electricity, gas, and water for the installation,
  • The official name of the substation and wholesale node associated with the installation,
  • Prior and current analyses done by installation or federal officials on the cost estimates or feasibility of instituting various energy efficiency or energy generation projects at the installation,
  • Available real property or square footage in buildings available for use over the term of the expected EaaS contract and whether the property is likely subject to a categorical exemption under the National Environmental Policy Act or would require extensive, time-consuming, and costly environmental impact statement (EIS),
  • Critical loads and their location on the one-line diagrams,
  • Existing diesel generators at the installation, their capacity, and location,
  • Electricity outage data,
  • Key agency officials and their contact at the base, regional, and national levels that have jurisdiction over the approval processes for the proposed project, and
  • Existing and ongoing energy projects at the base, the contract vehicle, the contracting officials, and the scope of the projects, especially ones that may impact the proposed energy project in terms of load, land availability, and interoperability of generation assets or microgrid controls.  

The Agency would not have to provide ownership, or similar rights-to-use of Government assets.