Kentucky's Morehead State Set to Realize $9.3 Million in Energy Savings with Energy Performance Contract from Siemens

Thursday, January 17, 2013 12:17 pm EST


"This university is taking steps to diversify and modernize its sources of energy while staying cost effective"

Siemens Industry, Inc. Building Technologies division today announced that Morehead State University will save over $775,000 annually in utility costs through an Energy Savings Performance Contract (ESPC). This will accrue over $9.3 million in aggregate utility savings over the term of the 12-year agreement.

“These measures provide a tangible demonstration of Morehead State University’s and the Commonwealth of Kentucky’s commitment to environmental responsibility by significantly reducing carbon dioxide emissions associated with campus operations,” says Beth Patrick, MSU’s CFO and Vice President for Administration and Fiscal Services. “Projects like these demonstrate that energy efficiency and environmental sustainability can be fiscally and socially responsible improvements.” 

Siemens worked with the university to complete a detailed facility infrastructure assessment and energy audit. Rather than continuing investments in the older coal plant and taking on more risk of increasingly stringent environmental requirements, it opted to construct a new natural gas-fired plant that would be more cost effective – and compliant-- over time. In total, the project will affect 30 campus buildings and consist of:

• A new, recently completed, 4,000-square foot natural gas-fired boiler plant to replace the university’s outdated coal-fired boiler plant, housing two new 900 horsepower steam boilers
• Facility upgrades for many of the campus buildings’ HVAC and electrical systems. Siemens will replace older fan motors and belts, and install variable speed drives and, where necessary, dampers, valves and cooling coils
• Digital Energy Monitors on most campus buildings to track electricity consumption on a per-building basis
• Digital control upgrades that can be networked over the university’s existing IT infrastructure
• Lighting controls and occupancy sensors

In addition to lowering ongoing operating costs, the university will curb its CO2 emissions by over 8,381 tons per year, which is equivalent to planting 75.3 acres of trees or taking 1,491 cars off the road annually. The university also will avoid costs of over $4 million during the program primarily from reduced plant operations and maintenance costs, freeing much-needed budget dollars for other educational expenses.

“This university is taking steps to diversify and modernize its sources of energy while staying cost effective,” says Steve Hoiberg, global market manager, Higher Education, Siemens Building Technologies. “Siemens is proud to team with Morehead State and other colleges and universities across North America to help educate the next generation of leaders and policy makers in a more sustainable environment.” 

This is Siemens’ fourth EPC with a major Kentucky university in recent years. Projects with Northern Kentucky University and Eastern Kentucky University were completed in 2006 and 2012, respectively. University of Louisville will wind up its second major phase of energy efficiency improvements in early 2013.

About Siemens
Siemens Infrastructure & Cities Sector, with approximately 87,000 employees worldwide, offers sustainable technologies for metropolitan areas and their infrastructures. Its offerings include complete traffic and transportation systems, intelligent logistics, efficient energy supply, environmentally compatible building technologies, modernization of the way power is transmitted and distributed, and smart consumption of electricity.  The sector is comprised of the Rail Systems, Mobility and Logistics, Low and Medium Voltage, Smart Grid and Building Technologies Divisions as well as Osram Sylvania. For more information, visit

The Siemens Building Technologies Division is the world’s market leader for safe and energy efficient buildings (“green buildings”) and infrastructures. As a service provider, system integrator and product vendor, Building Technologies has offerings for building automation, heating, ventilation and air conditioning (HVAC), fire protection and security. For more information, visit

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Alison Lewis
(770) 751-2194