FCIP Process

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Four Steps to Energy Savings Performance Contracting in the FCIP

Step 1: Preliminary Energy Audit

During the preliminary energy audit, several ESCOs selected by the customer perform a relatively quick inspection of the customer's facilities to get a general idea of the current energy use, improvements needed, and the potential for savings. There is no charge to the customer for the preliminary audit.

After the preliminary energy audit, the ESCOs present their findings to the customer and FCIP staff. The FCIP staff helps customers evaluate the preliminary proposals, and then customers select one ESCO for the Investment Grade Audit. FCIP staff does not take part in the ESCO selection.

Step 2: Investment Grade Audit (IGA)

The IGA is a comprehensive audit of the customer's facilities. Prior to the IGA, the customer and the ESCO determine the audit scope. FCIP staff can help customers identify priorities and evaluate opportunities to ensure that the audit meets their needs. When included with an Energy Performance Contract, the cost is typically lower than a stand-alone audit.

Following the audit, the ESCO presents the IGA Report to the customer, which outlines a proposed FCIP project. FCIP staff reviews this report and identifies for the customer potential issues related to program compliance.

Step 3: Energy Performance Contract

The Energy Performance Contract defines the project scope, the terms of the guarantee including the terms of the Measurement and Verification period and the construction schedule. Before the contract is finalized, the customer and the ESCO work together to develop the contract based on the customer's priorities, projected energy and operational and maintenance savings, and costs. FCIP staff review focuses on the guarantee of savings and the Measurement and Verification operational terms to make sure the customer fully understands these critical components of the contract. The Energy Performance Contract is between the customer, and the ESCO, and is approved by FCIP.

Step 4: Measurement and Verification

Measurement and Verification occurs after the project is completed when energy and operation and maintenance cost savings are calculated to verify that the reduction in energy usage meets the terms of the guarantee. The ESCO performs the Measurement and Verification and reports results to both the customer and the FCIP. Depending on the terms of the guarantee of savings, customers may receive a shortfall check for unrealized savings.

The FCIP team continues to provide customer assistance and guidance throughout the Measurement and Verification period. And, FCIP staff may assist with resolving issues that may arise.

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