Utica State Office Building Receives Award for Energy Excellence

Statewide Energy Efficiency Measures Yield Avoided Costs of $3.1 Million

ALBANY, NY (12/08/2009)(readMedia)-- New York State Office of General Services (OGS) Commissioner John C. Egan today announced that energy conservation and efficiency efforts have brought about a significant reduction in energy consumption in the agency's 19.5 million square foot portfolio of buildings.

These efforts were demonstrated at the Utica State Office Building, which has reduced its energy use from 2007 levels by 27.6 percent. This and other measures enabled the Utica State Office building to be selected as an Energy Star Building by the U.S. Environmental Protection Agency and the U.S. Department of Energy. This is the national symbol for superior energy efficiency and environmental protection.

Commissioner Egan was joined at today's announcement by Assemblywoman RoAnn Destito (D/WF-Rome).

"The Utica State Office building has provided OGS with a template on how to maximize every opportunity we can to save energy," Commissioner Egan said. "This enables OGS to help Governor Paterson meet the expectations of the taxpayers by finding innovative ways to reduce operational costs."

"The major energy efficiency upgrades the state has made to its Utica Office Building will significantly boost ongoing energy conservation efforts in the Mohawk Valley and statewide," said Assemblywoman RoAnn Destito (D/WF-Rome). "State OGS Commissioner John Egan and his staff are to be commended by putting state government at the forefront of efforts to reduce state taxes, and to improve the environment."

At the midpoint of the 2009-10 fiscal year, OGS' statewide energy consumption, including electricity, oil, and natural gas, was down 5.15 percent compared to the first half of last year, and 13.11 percent compared with 2007. For this fiscal year OGS, in cooperation with agency tenants, have provided more than $3 million in avoided costs.

OGS' aggressive energy conservation and efficiency efforts have brought about a significant reduction in energy consumed at state facilities. These efforts are supplemented by a nationally recognized natural gas contract and new legislation authorizing OGS to expand aggregate electricity purchasing. All told the agency is saving millions to help close New York State's budget gap.

OGS manages a portfolio of more than 50 buildings totaling more than 19.5 million square feet of office space, including the State office buildings in Hornell, Utica, Watertown, Syracuse, Binghamton and Buffalo.

During the six-month period of April-September 2009, the Utica State Office Building reduced energy consumption from 2007 levels by 27.6 percent, while the Dulles State Office Building in Watertown reduced energy consumption from 2007 levels by 13.4 percent.

The OGS-managed Henderson Smith State Office Building, located in Hornell (Steuben County) and the Dulles State Office Building, in Watertown (Jefferson County) have been jointly certified as Energy Star Buildings by the U.S. Environmental Protection Agency and the U.S. Department of Energy. This national mark of excellence is based on each facility's energy performance and efficiency. OGS is seeking to replicate this performance and transfer technological achievement by pursuing a similar designation for several additional properties in its portfolio.

OGS is also pursuing fuel purchasing strategies that result in lower operational costs. It was recently awarded the George Cronin Award for Procurement Excellence by the National Association of State Purchasing Officials for an innovative natural gas contract that contributed $1.5 million in savings during the 2008-09 heating season. Under this contract, OGS negotiated a fixed price agreement with its natural gas supplier to allow it to exclusively burn this fuel at two dual-fuel heating and cooling facilities that service more than 19,500 employees in the Albany area.

OGS expanded this aggressive alternative purchasing program for the 2009-10 heating season by locking in 80 percent of its projected natural gas needs through January 2010, and 50 percent through July 2010. This action took advantage of current low rates and assists to minimize price risks within the volatile energy marketplace.

OGS is expanding its energy management and purchasing practices through the aggregated purchase of electricity for state agencies. Governor Paterson signed legislation earlier this year authorizing OGS to make direct energy purchases from the New York Independent System Operator on behalf of other state agencies, rather than those agencies buying individually through local utilities or energy service companies. This approach provides the opportunity to purchase electricity at lower unit costs, avoid certain tariff surcharges, and eliminate administrative costs that utility companies pass on to customers. The first of these direct purchase pilots are expected to take place in later this month.

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