Berks County-based UGI Utilities Inc. has received a $27.7 million contract to implement energy-efficiency improvements such as natural-gas conversion from fuel oil at the Defense Logistics Agency distribution installation in Fairview Township, York County, the company said.
UGI is the general contractor and is partnering with subcontractors. Work includes natural-gas-boiler conversions, lighting retrofits and solar air heating, according to the utility firm.
With Utility Energy Service Contracts, a utility will provide analysis, design and installation for energy-efficiency, water-conservation and electricity-demand measures for a federal agency, according to the U.S. Department of Energy’s website.
A utility also will arrange financing when necessary, according to the department.
Natural gas from the Marcellus Shale has led to a drop in price in the past several years and large installations can achieve major savings if they convert from oil, UGI said.
Implementing the UESC project will start this year and a majority of the work will be completed in 2014, the company said.
UGI Utilities is a natural-gas and electric utility serving more than 660,000 customers in 45 counties in Pennsylvania and a county in Maryland.