CITY OF POUGHKEEPSIE LED STREET LIGHTING May 5, 2014
Preliminary Project Economics 1 Total Project Summary Proposed LED Project includes the following: LED Street Lighting Upgrades LED Traffic Signal Upgrades – 93 Intersections Purchase Price of Existing Lights from Central Hudson for $327,522 – City is negotiating pricing Security Deposit on Attachment of Lights to Central Hudson Utility Poles of $149,500
Preliminary Project Economics 2 Summary Preliminary LED Project Economics Estimated Project Cost$5,547,811 Annual Energy Savings 2,158,160 kWh Annual Energy Cost Savings$165,675 Annual O&M Savings$265,346 Total Cost Savings (First Year)$431,021 Annual Payment$399,232 Simple Payback Period12.2 years Net Present Value (NPV)$2,032,647 Return on Investment (ROI)36.48% Savings over 25 Years$5,378,471
Preliminary Project Economics 3 Cash Flow BAN Interest Rate 1.75% BOND Interest Rate 3.75% Term of 20 Years
Preliminary Project Economics with Rate Increase 4 Summary Preliminary LED Project Economics Estimated Project Cost$5,547,811 Annual Energy Savings 2,158,160 kWh Annual Energy Cost Savings$248,594 Annual O&M Savings$265,346 Total Cost Savings (First Year)$513,940 Annual Payment$399,232 Simple Payback Period10.3 years Net Present Value (NPV)$3,015,315 Return on Investment (ROI)54.35% Savings over 25 Years$8,411,244
Preliminary Project Economics with Rate Increase 5 Cash Flow BAN Interest Rate 1.75% BOND Interest Rate 3.75% Term of 20 Years
Comparison of Rate Increase 6 Description Current Rate W/ Rate Increase Estimated Project Cost$5,547,81$5,547,811 Annual Energy Savings 2,158,160 kWh 2,158,160 kWh Annual Energy Cost Savings$165,675$248,594 Annual O&M Savings$265,346 $265,346 Total Cost Savings (First Year) $431,021$513,940 Annual Payment$399,232 $399,232 Simple Payback Period12.2 years10.3 years Net Present Value (NPV)$1,603,168$3,015,315 Return on Investment (ROI)28.90%54.35% Savings over 25 Years $5,378,471$8,411,244
Comparison of Rate Increase 7
Next Steps
Project Next Steps 8 Council Approval of Project Central Hudson License Agreement – City Needs to Finalize the Terms of the Agreement with Central Hudson Authorize Prototype of Different Manufactures to be Installed and Finalize Fixture Selections
Project Schedule 9 May 5th, 2014 Presentation to the Common Council May 5th, 2014 Council Resolution to Approve Project and Financing August 15, 2014 Estimated Start of Construction August, 2015 Measurement And Verification
Questions & Discussions Thank you. Wendel Energy Services, LLC Joseph DeFazio, PE, Vice President of Energy Services Sam Marotta, CEM, CMVP, BEAP, Project Lead