City of Orem, Utah
Performance Contract Solution saving energy and improving city infrastructure
The City of Orem, Utah – the fifth largest city in the state – sought energy upgrades and retrofit solutions in order to modernize services for citizens, reduce its energy output, and improve resource and cost efficiency. The project started with the goal of replacing 5,128 street lights. As more needs were identified, the project grew to cover a variety of energy upgrades.
Orem chose Siemens’ Energy Savings Performance Contract solution for its 17-part project, which included increasing HVAC cooling capacity, boiler replacements, and many more upgrades in addition to the street lights. This solution was selected because Siemens has implemented similar projects in the state, and the proposed management planning, pricing and projected cost savings (estimated at $11.4 million over 15 years) were aligned with the city’s needs.
Benefits for Customer
Siemens enabled the city to complete many projects through the expertise of its Building Technologies Division, while providing the creativity to finance the projects through a tax-exempt loan structure via its Financial Services Division by using savings generated from the energy infrastructure upgrades to pay back the loan. Siemens offered an integrated arrangement by combining technological and financial expertise to meet Orem’s goals while providing relative ease and competitive pricing overall.