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Utility Energy Service Contracts for Federal Agencies

Utility energy service contracts (UESCs) allow federal agencies to take advantage of energy management services offered by their serving utilities, including energy- and water-efficiency improvements, renewable energy, and demand reduction.

UESCs are essential tools used by agencies to achieve their energy management goals, including those outlined in Executive Order 13693. To enhance the use of this contracting vehicle, the Federal Energy Management Program (FEMP) developed the Utility Energy Service Contract Guide, which helps streamline and simplify the UESC process and includes samples and templates for federal acquisition teams. Along with the guide, FEMP maintains a list of utility partners offering UESCs.

Under 42 U.S.C. 8256, federal agencies are authorized and encouraged to participate in energy-efficiency, water-conservation, and electricity-demand programs offered by gas, water, or electric utilities. Section 432 of 42 U.S.C. 8253 authorizes agencies to combine appropriations and financing. These and other related authorities can be reviewed in Utility Energy Service Contracts: Enabling Documents.

What We Do

FEMP’s Utility Partnerships Program fosters effective relationships between federal agencies and their local serving utilities through various ways.

  • Utility Contracts: Find areawide contracts, basic ordering agreements, and separate contracts.

  • Federal/Utility Partnerships Program: The Federal Utility Partnership Working Group (FUPWG) fosters effective relationships between federal agencies and their local serving utilities through various ways, which are outlined in the Utility Partnerships Program Overview

  • Resources: FEMP offers free training, technical support, and connects utilities with agency peers to consult with about UESC projects.

What We’ve Accomplished

Since 1994, $2.8 billion have been leveraged through federal utility partnerships. More than 1,800 projects from small single measure projects to large comprehensive projects have been reported. FEMP is designated to track agency-wide progress toward federal goals. Agencies may ensure their UESC project is captured by submitting data using the UESC Data Collection Template.

What Success Looks Like

Photo of U.S. Department of Energy Fermi National Accelerator Laboratory.Read case studies about agencies that have successfully used utility energy service contracts to implement energy-saving projects.