Johnson Controls to create a better environment for Cornell College through $5.9M in infrastructure improvements
Steam plant removal and LED lighting installations are among the improvements enabled by a Contingent Payment Program
The $5.9M in infrastructure improvements are enabled by a Contingent Payment Program (CPP), an innovative funding alternative to traditional debt financing that fully transfers risk to Johnson Controls. In addition to removing the campus steam plant, upgrades include installing high efficiency boilers, LED lighting fixtures throughout the campus and window replacements in the Old Sem and College Hall buildings. These improvements will help to reduce energy usage by 20 percent. The CPP guarantees that the infrastructure upgrades will produce savings that can help repay Johnson Controls for the project over the 18-year term agreement.
“Contingent payment programs are unique in the marketplace because we don’t get paid unless we produce the agreed-upon result,” said Aaron Rittenhouse, Midwest Program Leader for Johnson Controls. “If there’s a shortfall, we have an obligation to fix the reason for it and if we overperform, Cornell keeps that revenue. The risk is fully transferred to Johnson Controls to allow Cornell to focus on their mission.”
Johnson Controls will continually monitor progress and provide a report every year to ensure the company’s projects are providing the agreed-upon savings. Jonathan Brand, President of Cornell College, said the campus community will benefit from core mission activities, such as faculty retention and student aid, as a result of this infrastructure improvement project.
“Working with Johnson Controls enables us to make rapid progress on what were formerly mid-term goals. We will be able to get entirely off of the steam plant, something that we have been hoping to do for years, as well as undertake several environmentally important projects without overburdening our budget,” said Brand. “Our students, faculty, and staff will know that this project will liberate additional funds that can be used elsewhere.”
Learn more about Cornell College here.
About Johnson Controls
Johnson Controls is a global leader creating a safe, comfortable and sustainable world. Our 105,000 employees create intelligent buildings, efficient energy solutions and integrated infrastructure that work seamlessly together to deliver on the promise of smart cities and communities in 150 countries. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. We are committed to helping our customers win everywhere, every day and creating greater value for all of our stakeholders through strategic focus on our buildings and energy growth platforms. For additional information, please visit http://www.johnsoncontrols.com or follow us @johnsoncontrols on Twitter.
About Johnson Controls Building Technologies & Solutions
Johnson Controls Building Technologies & Solutions is making the world safer, smarter and more sustainable – one building at a time. Our technology portfolio integrates every aspect of a building – whether security systems, energy management, fire protection or HVACR – to ensure that we exceed customer expectations at all times. We operate in more than 150 countries through our unmatched network of branches and distribution channels, helping building owners, operators, engineers and contractors enhance the full lifecycle of any facility. Our arsenal of brands includes some of the most trusted names in the industry, such as Tyco®, YORK®, Metasys®, Ruskin®, Titus®, Frick®, PENN®, Sabroe®, Simplex® and Grinnell®. For more information, visit www.johnsoncontrols.com or follow @johnsoncontrols on Twitter.
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