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Sempra Energy Solutions Inks $46.5 Million Government Contract

Sempra Energy Solutions Inks $46.5 Million Government Contract

As one of its primary segments among large industrial customers needing energy services, San Diego-based Sempra Energy Solutions announced Thursday it had secured another series of four multi-year, multi-million-dollar merchant energy services contracts with federal facilities in four states -- California, Colorado, Florida and Utah -- and Puerto Rico. In total, the contracts are estimated to be worth $46.5 million, the company said.

Included in the package are: San Diego Veterans Affairs Healthcare System; Evans Army Hospital at Fort Carson, CO; Veterans Integrated Service Network 8 in Florida and Puerto Rico; and Hill Air Force Base in Ogden, UT.

The largest deal is in Sempra's headquarters city of San Diego -- a 10-year, $17.9 million project to replace an existing cogeneration system with one that is 40% more efficient than power from the grid, saving an estimated $19.3 million over the life of the contract. In addition, a new compressed air system will be installed at the one-million-square-foot hospital.

At a cluster of Veterans medical centers -- six in Florida and one in Puerto Rico -- Sempra's energy service unit has a 15-year, $12 million deal covering lighting retrofits, cooling tower additions, water-saving equipment and heating as well as ventilation/air-conditioning upgrades in four Florida hospitals in West Palm Beach, Bay Pines, Orlando and Gainesville.

In Colorado, Sempra Solutions has a 20-year, $11 million contract at the Fort Carson hospital, involving re-locating the custom-designed, high-temperature hot-water generators being closer to the hospital and housing them in a new, insulated building to minimize heat-loss in transmission, saving a projected $12.7 million for the hospital, according to Sempra.

Fourth, Sempra will complete a $5.66 million contract at Hill Air Force Base in Utah as a result of a $20 million, seven-year energy-conservation program it recently completed at facility. The new 20-year contract is the first successful contract award for an Air Force installation under the federal Department of Energy Super Energy Savings Performance Contract, the company said in its announcement.

Noting Sempra's "long history" of doing deals with the federal government, Erbin Keith, Sempra Energy Solutions president, said his company is "dedicated" to the federal market, and it now holds "competitively awarded regional contracts that allow our federal customers to move forward."

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