Post Office Delivers Incentive Deals

The U.S.P.S. is handing out contracts with energy efficiency companies who assume the risk that their work will actually reduce energy use. The Post Office's Shared Energy Savings (SES) program handed out ten energy conservation contracts worth $1.3 billion, but the contractors absorb the cost of installing the equipment.

The contracts are expected to save the Post Office an average of $11 million per year. The 10 participating companies are: BGA, Inc., Tampa, Fla; Chevron Corporation, San Francisco; ConEdison Solutions, White Plains, N.Y.; Energy Services Group, Wayzata, Minn.; Honeywell, Inc., Saugus, Mass.; and Noresco, L.L.C., Westborough, Mass.

Companies that offer to work on an incentive basis are showing confidence in their ability to deliver results and are likely to have success in attracting customers who are skeptical of the financial benefits.