Alliant Energy Corp., Johnson Controls Inc., Honeywell International Inc. and Energy Performance Specialists have completed work on nearly 80 armories, maintenance shops and other state-owned military buildings to save on energy costs.
The four companies were hired by the state to help the military facilities upgrade lighting and steam traps through an energy-saving initiative funded in part by the federal stimulus package and a state bonding program.
The initiative is linked to a 2006 executive order by Gov. Jim Doyle that called for state agencies to reduce energy use by 20% by the end of the 2010 fiscal year. The state owns more than 6,200 facilities that paid more than $125 million in utility costs in 2006, according to the governor's office.
The state Department of Military Affairs secured stimulus funding to improve energy efficiency at armories. The initiative cost $3.4 million, of which about $2.2 million came from the American Recovery and Reinvestment Act.
Statewide, Wisconsin is projected to save $297,385 a year. Although the payoff for the investment is estimated at about a decade, there will be savings going forward, advocates say.
Alliant Energy's non-regulated business, Alliant Energy Resources, went through the process of becoming a qualified energy service company, or ESCO, to participate in the state program, utility spokesman Scott Reigstad said. Honeywell and Glendale-based Johnson Controls are multinational ESCOs.
Alliant's non-regulated business is focused on wind farm construction and environmental consulting. Several years ago, the company sold off international energy and resort holdings as it scaled back business holdings that weren't a traditional regulated electric and natural gas utility.
ESCOs make energy efficiency improvements and are paid over time through the savings a utility customer - in this case the state - sees on energy bills.
"Alliant Energy began taking a serious look at participating in the performance contracting program in 2008," said Nancy Wills, Alliant sales manager, in a statement. "Once we made the decision to go ahead, we quickly started looking at State of Wisconsin facilities and how we could work with state agencies to make them more energy efficient."
Alliant's energy services business upgraded 18 armories, which yielded $67,841 in energy savings, the company said.
Honeywell upgraded 38 armories, Johnson Controls upgraded 16 and Energy Performance Specialists of McFarland upgraded seven.
"The performance contracting program provides a boost to our economy and a means to accomplish energy reduction goals without spending additional tax dollars," said David Osborn, the state's project manager, in a statement.
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MCFARLAND (WKOW) -- A lighting company in McFarland earned a mention in Governor Doyle's state of the state speech for its ability to astound even Madison Gas and Electric in delivering energy conservation.
Doyle said today Energy Performance Specialists (EPS) is also an example of growing green jobs, going from two employees in 2003 to twenty one workers today.
But EPS founder and president Rod Heller also conceded during the last half of 2009, companies in the private sector flatly refused to consider the necessary capital investment to convert to energy efficient lighting, even though they were expected to realize a 25 percent return on investment within two years.
Doyle said expanding state energy initiatives and pending legislation will spur businesses to commit to energy efficiency and create jobs, but others are concerned about near term impacts of energy upgrades in a fragile economy.
27 News reporter Tony Galli is following this story and will have more on where the track of possible job creation is going on wkowtv.com, and during 27 News at 5 and 6 p.m.