Navy's Long-Term Partnership with Utility is a Proven Success

February 1, 2002

San Diego Gas & Electric (SDG&E) and the Department of the Navy have worked together closely over the past 6 years to improve the energy efficiency of facilities within Navy Region Southwest, Southwest Division of the Naval Facilities Engineering Command, and the Navy Public Works Center, San Diego. SDG&E's Utility Energy Service Contract (UESC) program has executed in excess of $118 million in mechanical energy efficiency projects since 1996. Of this work, $65 million is in progress and will result in a reduction in Federal energy bills in San Diego County by approximately $8 million per year.

Notable projects underway include an area-wide direct digital controls (DDC) system and a host of related projects at the Naval Medical Center, San Diego. Once complete, the area-wide DDC system will be one of the largest controls project undertaken in the nation. Current delivery orders supporting the area-wide DDC concept are valued in excess of $14 million and are projected to save the Government more than $1.5 million annually in energy and maintenance costs. This groundbreaking work will eventually connect 17 separate Navy and Marine Corps bases through a central control system that will enable the Government to remotely control equipment and monitor energy consumption as well as implement several electricity demand limiting strategies.

At the Naval Medical Center, San Diego, where several DDC system retrofits have been ongoing for several years, new DDC controls will manage variable-air-volume boxes, air handlers, and new variable speed drives throughout the facility. This work is being accomplished by SDG&E under a strict, not-to-interfere basis with the hospital's normal operations. Plans at the Navy Medical Center also call for a complete test and balance of the air systems and operator workstations, which will include detailed graphics showing equipment status and providing the ability to control equipment set points to reduce energy consumption. In total, more than $15 million in controls and mechanical projects are either ongoing or complete at the Navy Medical Center, resulting in almost $2 million in annual savings to the Government.

Dave Guebert, Director of Federal Accounts at SDG&E said, "The most important aspect of these projects is the partnership that SDG&E and the Federal Government have been able to forge over the years. Without the team approach and trust that each organization has in the other, none of this would have been possible."

Edward Thibodo, Energy Team Contracting Officer at the Naval Facilities Engineering Command, Southwest Division, notes that without the partnership between the Government and SDG&E only a small portion of this work would have been accomplished. The partnership begins long before the project. The team cannot be built after award; it has to be in place prior to the first audit.

The Navy's UESC program, as shown in the San Diego area, has resulted in significant savings for the Federal Government and has demonstrated the true value of an ongoing partnership.

For more information, please contact David McAndrew of FEMP at 202-586-7722 or