Picatinny Arsenal Awards Cogeneration Project to Energy Systems Group

WHARTON, N.J., Nov. 09, 2017 -- Energy Systems Group (ESG), a leading energy services provider and wholly owned subsidiary of Vectren Corporation (NYSE: VVC), recently joined officials from Picatinny Arsenal to break ground on a $16.6 million Department of the Army Energy Savings Performance Contract (ESPC) project, awarded to ESG in July 2017, for energy infrastructure improvements at Picatinny Arsenal in New Jersey. Attendees included Jordan Gillis, Acting Assistant Secretary of the Army Installations, Energy and Environment; Brigadier General Alfred F. Abramson III, Senior Commander; Lieutenant Colonel Jeffrey Ivey, Garrison Commander; Fred Hankerson, Deputy to the Garrison Commander; and Richard Havrisko, Picatinny Department of Public Works Director. As the Joint Center of Excellence for Armaments and Munitions, Picatinny Arsenal provides products and services to all branches of the U.S. military through its staff of more than 6,000 that specializes in the research, development, acquisition, production, and lifecycle management of advanced weapon systems and ammunition.

Pictured left from right: Brigadier General Alfred F. Abramson III, Senior Commander; Jordan Gillis, Acting Assistant Secretary of the Army Installations, Energy and Environment; Steven Spanbauer, Senior Vice President, Energy Systems Group; and Lieutenant Colonel Jeffrey Ivey, Garrison Commander.

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0b9ef79b-cb14-4382-8c02-5d6ea33d4ba8

This project enables Picatinny Arsenal to address critical infrastructure and facility needs that would otherwise be deferred until appropriated resources became available. In addition to the extensive mechanical scope, the project includes a gas-fired, 2-megawatt cogeneration plant to enhance mission assurance through resilient energy capabilities.

"Bringing this cogeneration project online at Picatinny Arsenal is a great example of the Army's energy resilience strategy in action," Acting Assistant Secretary of the Army for Installations, Energy and Environment, Jordan Gillis stated at the November 7^th commissioning ceremony for the Army's latest Combined Heat and Power project. "Picatinny provides critical support to the Army, and these cogeneration infrastructure upgrades that you see today, enhance the Arsenal's and the Army's goals to be a ready force. Army installations are prioritizing energy and water security to ensure available, quality power and water are on hand to sustain critical missions for a minimum of 14 days. This project received unprecedented collaboration to ensure it remained financially viable,” added Mr. Gillis. “Thanks to an enhanced utility commodity price from New Jersey Natural Gas, this project's life cycle cost analysis came in strong. The project has been submitted for a $2 million incentive credit from the New Jersey Clean Energy Program, which provides confidence to investors that cogeneration projects are attractive and viable.”

Mr. Gillis further added, “In the future, this facility has the capability to be fitted with back-up propane, which will enable it to withstand a potential cut-off of its natural gas supply. Increasing fuel diversity further diversifies our assurance that when we require power, it will be there. Installation energy resilience enables Army Readiness and the Army's Multi-Domain Warfighting Strategy. It benefits the Army, the surrounding community, and the Nation. To help context the size of this project, based on its 2MW size, this project will deliver enough power to operate the equivalent of 2,000 standard-sized residential homes on a cold winter day. It is a phenomenal addition to Picatinny's operational enhancement."

ESG has previously implemented seven ESPC projects at Picatinny Arsenal and is currently implementing operations and maintenance services under an ongoing Arsenal Wide Maintenance contract.  The ESPC projects implemented by ESG have earned six Annual Secretary of the Army Energy and Water Management Awards. 

“ESG is honored to support Picatinny Arsenal and the Army,” said Steve Spanbauer, Senior Vice President of Energy Systems Group. “This project expands and builds upon the work ESG has already completed at the Arsenal, further helping Picatinny increase mission resiliency, reduce energy consumption, and update infrastructure,” added Spanbauer. “We applaud the Army’s leadership in implementing innovative solutions by which all of the infrastructure improvements are paid for from savings; this is good for the U.S. Army, U.S. businesses, and U.S. taxpayers."

Energy Systems Group (ESG), a wholly owned subsidiary of Vectren Corporation (NYSE:VVC), is a leading energy services provider that specializes in energy efficiency, sustainability, and infrastructure improvement solutions in the government, education, healthcare, commercial, and industrial sectors. ESG is strongly positioned to develop projects across the full spectrum of federal contracting opportunities, including Energy Savings Performance Contracts with the U.S. Department of Energy and the U.S. Army Corp of Engineers. ESG is an industry leader in developing and implementing federal government projects under Utility Energy Services Contracts and through public/private partnerships such as Enhanced Use Leases. ESG also offers a full range of sustainable infrastructure solutions including waste-to-energy, distributed generation, and renewable energy. To learn more about ESG, visit www.energysystemsgroup.com.

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