City of Key West ESPC Program Overview and Update

This City of Key West meeting on March 20, 2026, provided an overview and update on the city's Energy Savings Performance Contracting (ESPC) program. NV5, a clean energy consulting firm, presented the business case for moving forward with an ESPC project aimed at reducing the city's $3 million annual utility costs across 450 energy and water meters. The presentation detailed how the ESPC model leverages future utility savings to fund energy efficiency and capital improvement projects, such as lighting upgrades, HVAC controls, and building envelope improvements, with projected savings of 10-30%. The city was asked to authorize proceeding to the next step of issuing a Request for Proposals (RFP) to select an energy services company (ESCO) to implement the turnkey project and guarantee savings. Preliminary financial modeling showed a $6.46 million project with debt payments largely offset by energy savings over a 20-year term. The meeting focused on procurement strategy, vendor selection, and budget-neutral funding mechanisms for energy and capital upgrades.