Northern Power, a subsidiary of Distributed Energy Systems Corp. (Nasdaq: DESC), has been awarded $3.5 million in contracts to help Honeywell install, commission, operate and maintain turnkey combined heat and power (CHP) systems for the United States Postal Service (USPS).
The contracts include $2.5 million for a new 1-megawatt (MW) CHP facility at the USPS San Bernardino Processing and Distribution Center in Redlands, CA. This system is expected to produce enough power during normal operation to provide 80% of the facility’s forecasted electrical power demand.
Under an additional $1 million agreement, Northern Power’s PowerAdvantage(TM) service program will provide operations and maintenance support to the 1.5-MW CHP system at the USPS Margaret L. Sellers Processing and Distribution Center in San Diego, which Northern Power installed and commissioned in 2005.
The CHP system at the San Bernardino facility is part of an ongoing effort by the USPS and Honeywell to improve energy efficiency and reduce energy costs at more than 250 USPS facilities in Southern California. The projects led by Honeywell are designed to save the USPS $4.1 million in annual cost savings and reduce annual consumption by almost 30 million kilowatt hours (kWh) – enough energy to power almost 4,000 homes for a year.
“Being selected again by Honeywell to further assist USPS in implementing this important energy plan reinforces our belief in the importance of these types of projects,” noted Charles “Chach” Curtis, Vice President of On-site Power at Northern Power. “They are further evidence that a growing number of major energy users see the need to plan more strategically when it comes to energy consumption, thereby delivering better power reliability, efficiency and cost-savings.”
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