UGI Utilities, Inc. has been awarded a $27.7 million Utility Energy Services Contract (UESC) project with the Defense Logistics Agency (DLA), at its site, Defense Distribution Center, Susquehanna in New Cumberland, PA.
UGI will serve as the general contractor in providing a number of energy efficiency improvements to the base, including converting their heating source from fuel oil to natural gas.
UESC is a contracting vehicle sponsored by the U.S. Department of Energy which allows utilities to provide comprehensive energy efficiency improvements and energy cost reductions to their federal customers. The program in effect allows utility companies such as UGI to serve as a single source for energy efficiency improvements, recognizing the knowledge base of utilities and simplifying the contracting process.
UGI is the general contractor and has partnered with other subcontractors to implement energy conservation measure at DLA. In addition to converting the base’s boilers to natural gas, other measures include lighting retrofits and solar air heating.
The UESC project implementation will begin in 2013, with the majority of the work being completed during the 2014 calendar year. The project will generate significant energy cost savings, primarily through the natural gas conversion.
The price of natural gas has dropped more than 30 percent over the past five years with the introduction of Marcellus Shale gas into the market. Large installations such as DLA can see major savings through a conversion from oil to natural gas.
UGI Utilities has headquarters in Reading, Pennsylvania and serves 660,000 customers in 45 Pennsylvania counties. Customers interested in additional information visit the UGI website at www.ugi.com; on Facebook at www.facebook.com/ugiutilities; Twitter at www.twitter.com/ugi_utilities.