State of Alabama Department of Corrections - Energy Performance Contract
The Alabama Department of Corrections (ADOC) entered into a $62,000,000/22-year Energy Performance Contract lease agreement to finance the purchase and installation of energy conservation measures to address the needs which had been developed for each of the 29 ADOC facilities throughout the state.
The Alabama Department of Corrections has been plagued for years by limited capital improvement budgets, inefficient buildings, outdated systems and worn out equipment. When all phases of the planned energy efficiency projects are completed, the ADOC will reduce its utility usage by more than 25 percent, exceeding the Governor’s Executive requiring state agencies to reduce utility usage by 20% from FY2005 levels. And, the annual utility savings are projected to cover the debt service throughout the period.
This financing is Phase I of a two-phased project. Phase two is projected to be $17,500,000 – both phases were awarded to Grant Capital in September of 2010.
"The state of Alabama Department of Corrections urgently needed to upgrade the prisons aging infrastructure. Grant Capital provided $86.2 million to finance an energy performance contract for the energy retrofits and renovations, estimated to achieve significant operating expense savings over time. The Grant Capital team not only provided the state with competitive market rates but efficiently executed the documentation process leading to funding."
Associate Commissioner of Administration,
Alabama Department of Corrections
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