Energy Service Companies (ESCOs)ADVICE ON WORKING WITH ESCOsAll businesses secure supplies, raw materials, shipping, and a host of other goods and services from other businesses. Smart businesses have developed procedures with their purchasing departments that include shopping around for competent vendors who offer fair prices, ensuring goods and services meet specifications, and adjusting payments to agreed-upon schedules of performance. Managers and perhaps legal counsel should become involved for transactions of substantial magnitude or that are different from the routine. These good business practices should be followed in working with ESCOs, just like working with other service providers. Doing business with energy services companies is different from the routine for most companies, so special care is necessary to ensure that the deal is sound and that the goods and services offered by the ESCO are installed appropriately and achieve the specified savings. Securing performance guarantees and common agreements on how actual savings will be measured is particularly important, both in commissioning the systems installed and in ensuring ongoing efficient performance. Toward that end, the National Association of Energy Services Companies (NAESCO) publishes The Energy Efficiency Project Manual: The Customer's Guide to Upgrading Equipment While Reducing Facility Operations and Maintenance Costs through Energy Efficiency Contracting. It is a "how to" guide that covers techniques for financing and technical terms used in the contractual process. The Manual includes sample requests for quotation (RFQ's) and requests for proposals (RFP's), as well as standard contractual provisions. The 102 page manual is available from NAESCO (www.naesco.org/bookstore) for $40. |
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