Utility Energy Services Contract

The Utility Energy Services Contract (UESC) program offers third party alternative financing using private capital investment combined with appropriated funds and partnering with local utility providers in customer's servicing area. 

Working with the utility provider, the program has the expertise and capabilities to deliver renewable and alternative energy sources such as solar, wind, geothermal and biomass projects, or conventional energy conservation measures such as chiller improvements, boiler improvements, lighting improvements, building envelope improvements, water conservation, energy management control systems, utility monitoring control systems, and other related measures and improvements that can be third-party financed. 

Typical UESC Timeline

Phase 1: Utility Provider Selection

24 months (typical) for first three phases

Phase 2: Preliminary Assessment

Phase 3: Investment Grade Audit

Phase 4: Implementation

12-24 months

Phase 5: Performance Period

Not to exceed 25 years for implementation and financing
periods combined


Up to 30 days (typical)


Alternative energy sources that do not qualify as renewable energy sources still offer improvements or benefits in terms of greenhouse gas reductions, reduced overall energy costs and/or improved energy security.

The geographic scope of the UESC program is throughout the United States and the District of Columbia and any U.S territory or land servicing the Army, Navy, Air Force, and other non-Department of Defense (DoD) agencies. 

Huntsville Center's UESC program provides risk management and promotes innovative thinking by suggesting creative initiatives to customers. 

Our customers are offered alternatives that provide broad and all-encompassing scope resolutions instead of merely cancelling the project if the forecast savings estimates are under-estimated.     

The UESC program is a one-stop-shop, centrally executing all program and project management, engineering, technical, legal and acquisition services.

Under 42 U.S.C. 8256, federal agencies are authorized and encouraged to participate in energy efficiency, water conservation, and electricity demand reduction programs offered by gas, water or electric utilities.

Contact the UESC team by calling (256) 895-7481 or send an email.


UESC projects

A look at the 5 Mega Watt Solar array at Fort Campbell, Kentucky. This project is the first time Huntsville Center’s Energy Division used two third-party financing contract vehicles together (Power Purchase Agreement and UESC) for a renewable energy project.
The 5 MW solar array on Fort Campbell, Kentucky. The array completes the installation’s requirement using a 10-year Utility Energy Services Contract (UESC) with Pennyrile Rural Electric Cooperative Corporation.
Workers make preparations to centralize the heating and air conditioning systems of four buildings into a central utility plant at Defense Intelligence Agency, Bethesda, Maryland. Huntsville Center's UESC program integrated the project with DIA and the USACE Baltimore District.

Learn More

To Learn more about UESC, click here and view our Fact Sheet.