Engineered Savings Programs (ESP) An Alternative to Performance Contracting

Authors

  • Michael J. Langton P.E., CEM, CLEP, CDSM Langton Energy Consultants

Abstract

Performance contracting (PC) programs are aimed at funding
infrastructure improvements, such as lighting and HVAC upgrades,
from energy savings. These programs are typically provided by origi-
nal equipment manufacturers (OEM) and unregulated utility-based
energy services companies (ESCOs). Unfortunately, they have not
been accepted widely in the private sector. Consulting engineers often
believe that PC programs fail to represent the best interests of the
customer. This is because PC programs cost substantially more than
traditional energy projects designed by professional consulting engi-
neering firms and installed by construction management companies.

Downloads

Download data is not yet available.

Author Biography

Michael J. Langton, P.E., CEM, CLEP, CDSM Langton Energy Consultants

Michael J. Langton, P.E., CEM, CLEP, CDSM, heads a private consulting firm, Langton Energy Consultants. Since entering the engineering industry in 1982 and earning his P.E. designation in 1987, he has become an accomplished engineer. He founded and was president of his own facility/construction management and consulting engineering company for six years and also managed the MEP department at Lockwood, Andrew and Newnam for three years. His expertise encompasses all facets of engineering design and management, including thermal storage analysis, energy utilization evaluations, telecommunications, and demand-side management. In addition to engineering design and management, he specializes in facility design and evaluation, construction management, and facility management operations. Michael has been recognized by the Association of Energy Engineers. He received the Region IV “Energy Engineer of the Year” award from AEE in 1993, and was enthusiastically welcomed as president of the North Texas Chapter of AEE in both 1990 and 1996. In 1999, he was selected as vice president of the Lone Star Chapter of AEE. 10927 Crestwater Circle, Magnolia, TX 77354; (p) 760-918-5680; (f) 760-918-5681; (e) mlangton@enovasoftware.com.

References

Some of these restrictions are driven by state legislation.

The internal rate of return (IRR) was calculated using the total project costs

and the estimated annual savings for the project. For simplicity, it is as-

sumed that the customer paid for the project’s first cost without using fi-

nancing.

Comparative financial analysis based on 7% cost of capital

Downloads

Published

2023-09-30

How to Cite

Langton, M. J. . (2023). Engineered Savings Programs (ESP) An Alternative to Performance Contracting . Strategic Planning for Energy and the Environment, 21(1), 27–35. Retrieved from https://journals.riverpublishers.com/index.php/SPEE/article/view/20411

Issue

2001: Vol 21 Iss 1 2001-2002

Section

Articles