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Demand strong for DESEU energy efficiency revenue bonds

March 5, 2019

The Delaware Sustainable Energy Utility announced a successful issuance and sale of tax-exempt energy efficiency revenue bonds, which will fund $19.1 million for energy-saving performance contracts for the Indian River and Colonial school districts, and the Delaware Department of Health and Social Services. The sale of these bonds was originally envisioned by DESEU Chairman Harris McDowell III, as a way to fund needed energy efficiency programs.

The bond sale results affirmed the importance of the excellent AA+ credit ratings that DESEU Bonds maintain from Standard and Poor’s. The bonds were issued to provide funds in support of DESEU’s mission of providing energy savings and value to the residents and business of the state.

DESEU Executive Director Tony DePrima said, "This year’s bond sale comes at an opportune time as long term interest rates are favorable, allowing the DESEU to fulfill our mission of offering affordable energy efficiency initiatives." 

Demand for the bond sale was high; DESEU was originally seeking $18.65 million and had $57 million in orders allowing for the fulfillment of the obligation with the best proposed pricing. The true interest cost was 3.22. percent for the sale.

The proceeds from the sale of the the bonds will mainly be used to finance or refinance the cost of the design, construction and installation of energy conservation measures, as well as to fund capitalized interest on the bonds, and to pay a portion of the costs of issuing the bonds. Overall, there are $33.4 million in guaranteed energy savings, with $3.7 million in net energy savings for the three recipient agencies.

Among dozens of planned energy conservation measures that will be addressed, some of the more typical include retrofitting interior and exterior lighting with LED systems; upgrading domestic water fixtures with low flow flush kits and fixtures; installing new high efficiency transformers; the addition of attic insulation, door weather stripping, and roof sealing for improved thermal and humidity control; and converting boiler heating systems from oil to duel natural gas/oil operations.

The EERB sales will support projects for these agencies:
• Indian River School District ($7.31 million) – seven elementary schools, three middle schools, two high schools, two specialty schools.
• Colonial School District ($7.37 million) – eight elementary schools, three middle schools, one high school, three specialty schools.
• Delaware Department of Health and Social Services ($3.96 million) – six state service centers, four campus sites

In 2011 the DESEU raised more than $72 million in their first energy efficient revenue bond sale. The agencies supported in 2011 were Delaware State University, Delaware Technical and Community College, Delaware Office of Management and Budget, Delaware Department of Correction and the Delaware Department of Services for Children, Youth and their Families.

The Delaware Sustainable Energy Utility is a unique nonprofit that helps Delawareans save money through clean energy and energy efficiency. Its Energize Delaware programs provide energy education and financial incentives to Delaware residents, businesses, nonprofits, government facilities, farms, faith organizations and schools. For more information, go to www.EnergizeDelaware.com.