The Delaware Sustainable Energy Utility announced a successful issuance and sale of tax-exempt energy efficiency revenue bonds, which will fund $19.1 million for Energy Saving Performance Contracts for the Indian River and Colonial School Districts and the Delaware Department of Health and Social Services.
The sale of EERB’s was originally envisioned by DESEU Chairman Harris McDowell III, as a way to fund needed energy-efficiency programs.
The bond sale results affirmed the importance of the AA-plus credit ratings that DESEU bonds maintain from Standard and Poor’s. The EERB’s were issued to provide funds in support of DESEU’s mission of providing energy savings and value to the residents and business of the state.
"This year’s bond sale comes at an opportune time as long term interest rates are favorable, allowing the DESEU to fulfill our mission of offering affordable energy efficiency initiatives,” said DESEU Executive Director Tony DePrima.
DESEU was originally seeking $18.65 million and had $57 million in orders allowing for the fulfillment of the obligation with the best-proposed pricing. The true interest cost was 3.22 percent for the sale.
The proceeds will mainly be used to finance or refinance the cost of the design, construction and installation of energy conservation measures, as well as, to fund capitalized interest on the bonds and to pay a portion of the costs of issuing the bonds. Overall, there are $33.4 million in guaranteed energy savings, with $3.7 million in net energy savings for the three recipient agencies.
Among dozens of planned ECM’s that will be addressed, some of the more typical include: retrofitting interior and exterior lighting with LED systems; upgrading domestic water fixtures with low flow flush kits and fixtures; installing new high-efficiency transformers; the addition of attic insulation, door weather stripping and roof sealing for improved thermal and humidity control; and converting boiler heating systems from oil to duel natural gas/oil operations.
Of those funds, $7.31 million will go to support projects in the Indian River School District, including seven elementary schools, three middle schools, two high schools and two specialty schools; $7.37 million will go to Colonial School District, including eight elementary schools, three middle schools, one high school and three specialty schools; and $3.96 million will go to the Delaware Department of Health and Social Services, including six state service centers and four campus sites.
For more, visit energizedelaware.com.