R contracts law have created new opportunities
for natural gas utilities to increase sales to the federal government through participation in energy savings projects. There are three ways in which a gas utility can participate and increase sales: contractors for energy efficiency improvements at federal facilities in eight states. The total value of this one Free Savings Contract will be up to $750 million. According to DOE, this contract "is the first in a series of six similar awards that will be made during the next The gas utility can expand existing utility business by entering into a new type of Demand Side Management (DSM) Plus Contract with the federal government-potentially without competition.
The gas utility can create nonregulated energy services companies or "ESCO" affiliates that can enter into Energy Savings Performance Contracts (ESPCs) with the federal government, with timited or no competition.
The gas utility and affiliated or nonaffiliated ESCOs can design these DSM-Plus Contracts and/or ESPCs so that utility sales are increased under existing utility service agreements.