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Shred Savings <br />SUMMARY <br />Date of operations Frd,rctary 1984 - March 1986 <br />Dollar amount loan*ds 0504,000.Q, <br />Number of units affected% 43 proper l tes. 6'_.11 unr is <br />Since February of 1984 the Energy F.osource Center has Offered a <br />Shared Savings Energy Management Service program for rental <br />properties. The EPC acts 0% an Energv Management Service and <br />tell*% full responsibility fnr desion. specification and <br />inspection of improvements, fh. program also includes A Tenant <br />Education program which focuses on energy, colon habits. In whet return <br />wonld <br />for these services the Owner agrees to fay <br />tile ERU have beer, paid to the utility had no wor It been done, The <br />t natomer mates repayment to the ERC in the form of munthly <br />lrvelized pavment.s which reflect heating costs prior to energy <br />rmpruvrmnnt.%. The ERC takes over responsibility for actual fuel <br />payments and retires the debt. With this method improvements <br />are io=tit.i-tied with no rhanye in cash flow to the property <br />These monthly budgeted Aaamwrf sronditilons. andany n]ly to the <br />significant <br />actual costs of energy. weather <br />hangLs in energy use. The program earns revenue through a ten <br />oan, management fee dud through a share of t1,a value of energy <br />p *rilding equals or exceeds its <br />sa iCe each year if the bu <br />wort because theprojections. Tht• owner is assured of quality <br />ERC mast retire the debt whether or not its share of the savings <br />I- sufricicnt to pay for debt retirement.. <br />The program is divided into two phases -- one to four unit. <br />bunidinus and structures with more than five units -- and funded <br />according to this distinction. The 1-4 unit phase is funded by <br />grants totaling e143,000 in roughly equal portions from the <br />Minnesota Department of Energv and Economic Development, <br />Minnesota Departmrnt of Economic Securityjr5f` and Northern <br />Natural GAS. 11130.04no of this total amount was set aside for <br />administration an,d research. The money ft11- tlm 5+ program is in <br />the form of a loan for 1S20.o0n arB4 frog, <br />TiletnoteMisnight supportediby <br />ly <br />Huosi,.0 Funds. payablo Ill Light y.r <br />loaf. <br />n quarantea of f10ty 000 each frte NSF and the City of Saint <br />Pdr11. The !:`uO,fKKn yuarantee cuvnrs any individual investment <br />which performs so pourly that the ERC cannot cover <br />o e►ethe principal Of <br />the fuel bills, or use the energy 9 <br />s tointerest as predicted, or <br />of well As the rase of rustnmer default. <br />Thr ERt. also utili:,rs 9nlar fntx ov end Energy Conservation haul: <br />subsidies of 20% to SOX which sw ve as a downpaymant to wo-t to <br />