Energy Systems Group to Implement Steam Decentralization and Energy Savings Program at Marine Corps Base Camp Lejeune

JACKSONVILLE, NC--(Marketwired - September 28, 2015) - Piedmont Natural Gas Company (NYSE: PNY) and Energy Systems Group (ESG), a leading energy services provider and wholly owned subsidiary of Vectren Corporation (NYSE: VVC), are implementing a Utility Energy Services Contract (UESC) by the Naval Facilities Engineering Command Mid-Atlantic (NAVFAC MIDLANT), signed in March, for a comprehensive steam decentralization project at Marine Corps Base Camp Lejeune. The project is beneficial for all parties, allowing Lejeune the opportunity to invest and upgrade aging infrastructure to realize efficiency and cost-savings at no up-front cost and will yield more than $37 million in projected savings over the 15-year term. Known as the home of "Expeditionary Forces in Readiness," Camp Lejeune is the home base for the II Marine Expeditionary Force, 2nd Marine Division, 2nd Marine Logistics Group, and other combat units and support commands.

The project marks Piedmont's first and ESG's largest UESC, a contracting vehicle that offers federal agencies a cost-effective means to implement energy efficiency, renewable energy, and water efficiency projects. Using the UESC program will allow Camp Lejeune to complete its steam decentralization program by April 2017, and shut down three central steam plants -- two of which currently burn coal.

The project scope includes design, construction, and commissioning of comprehensive energy savings upgrades for 37 buildings at three major locations at Camp Lejeune: Hadnot Point/French Creek, Marine Corps Air Station (MCAS) New River, and Courthouse Bay. Infrastructure improvements will consist of new high-efficiency boilers, hot water heating systems, heating, ventilation, and air-conditioning upgrades and water treatment equipment, integrated into a major controls expansion. Site enhancements will also include construction of new boiler buildings for improved reliability of decentralized systems.

"In our current constrained fiscal environment, third-party financing like this UESC at Camp Lejeune allows the Marine Corps to repair or replace outdated equipment with no upfront capital cost because the UESC uses the energy savings generated by the project, to pay for the project," explained Randy Monohan, energy projects officer for Marine Corps Installations Command. "Enhancements gained from UESC projects improve on-base working environments while reducing the energy consumption of our infrastructure," added Monohan. "As a result, these projects increase productivity, improve quality of life, and support the Federal mandates to reduce consumption, all of which build on the Marine Corps Energy Ethos of using our assets wisely and understanding the mission implications of the efficient use of resources like energy."

Greg Collins, ESG president added, "ESG is proud to partner with Piedmont Natural Gas and NAVFAC MIDLANT to develop cost-effective energy conservation measures that will further promote sustainability, efficiency, and environmental stewardship at Camp Lejeune by allowing them to complete their steam decentralization on time."

Piedmont's Vice President for Business Development and Technology Services, Ken Valentine, also commended the project, "We have been proud to support Camp Lejeune through this project and through our valued partnership with ESG and NAVFAC MIDLANT," said Valentine. "When completed, this project will result in greater energy efficiency at the base, help reduce Camp Lejeune's carbon footprint, and promote greater environmental stewardship and sustainability."

Camp Lejeune's carbon footprint will be reduced by up to 103,815 metric tons of carbon over the contract term, which is equivalent to planting approximately 85,000 acres of forest.

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.