Connecticut Valley Hospital to get $30M Energy Upgrade

A press release from the Connecticut Department of Mental Health and Addiction Services

The Department of Mental Health and Addiction Services has selected NORESCO to lead the implementation of a $30 million energy makeover at Connecticut Valley Hospital in Middletown.

It's the first project selected under an innovative new program designed to reduce costs through energy efficiency at state and municipal buildings.   

The comprehensive energy retrofits, to be paid for through future guaranteed energy savings, will bring much-needed and highly efficient energy systems and equipment to the CVH campus, which first opened its doors in 1868 and where operations are constantly challenged by aging infrastructure.  

This is the first project out of the gate under Connecticut’s new standardized energy savings performance contracting program, that allows state agencies and municipalities to enter into performance contracting agreements with energy service companies. 

These contracts enable agencies and municipalities to upgrade facilities and reduce energy costs, while creating jobs and driving investment in Connecticut’s economy. The program has a number of support mechanisms — like pre-approved contractors, on-call advisors, standardized contract templates, and targeted financial assistance — which will help ensure a streamlined approach and successful projects. 

An energy savings performance contract is a tool that state agencies and municipalities can use to perform energy efficiency upgrades on their buildings with no up-front costs. 

The costs of the efficiency upgrades are paid for through guaranteed savings on future energy bills. The CVH project will include approximately $30 million in energy efficiency upgrades. 

The staff at the Department of Mental Health and Addiction Services at the hospital will work closely with the Department of Energy and Environmental Protection, the Office of Policy Management, and the Clean Energy Finance and Investment Authority to secure private financing to provide the limited amount of upfront capital needed for the project. 

“This performance contracting project at Connecticut Valley Hospital showcases yet another innovative program the state is using to meet our objectives for Connecticut’s cheaper, cleaner, and more reliable energy future,” said Gov. Dannel P. Malloy. 

“This program supports our push to be better stewards of taxpayer dollars and also moves us closer to the goal of leading the nation in energy efficiency.” 

Through these contracts, state and local governments will immediately realize tremendous savings from energy efficiency projects without having to spend scarce dollars and then wait for the payback period.  

“We are delighted to be leading by example in reducing energy use and costs,” said Patricia Rehmer, commissioner of the Department of Mental Health and Addiction Services. 

“This performance contracting project offers a means for us to realize much-needed infrastructure improvements that will significantly increase efficiency, reduce operating and maintenance costs, and improve the living environment for our patients,” she said.