Utility Energy Service Contracts (UESCs)

Utility Energy Service Contracts (UESCs) are financing vehicles through which federal government agencies may implement efficient and renewable energy projects through partnerships with their serving utilities. The utility typically arranges the financing to cover the capital costs of the project with repayment amortized over the contract term from the cost savings generated by the energy efficiency measures. Through UESCs, federal agencies can implement energy improvements with no initial capital investment, minimal net cost, and savings in time and resources through one-stop shopping provided by the utility.