SOURCE: Siemens

July 26, 2005 08:01 ET

Mississippi Department of Corrections Partners With Siemens; Will Save More Than $6 Million in Energy & Operational Costs -- Guaranteed!

First State Agency in Mississippi to Enter Into a Performance Contract

BUFFALO GROVE, IL -- (MARKET WIRE) -- July 26, 2005 -- Siemens Building Technologies, Inc., will guarantee the Mississippi Department of Corrections (MDOC) more than six million dollars in energy and operational costs under the terms of a 15-year Performance Contract.

The MDOC is the first state agency in Mississippi to enter into a Performance Contract. Such agreements typically allow a customer to purchase a systems upgrade and/or service that pays for itself over time, with no upfront costs. The savings in energy and operating costs fund the building improvements and financing costs over a specified term, and the savings are guaranteed on an annual basis.

Siemens (NYSE: SI) will provide the MDOC with a comprehensive energy and water management program that guarantees energy and operational savings estimated to be $430,000 per year at current energy prices.

"This joint partnership will serve as a representation for how other state departments throughout Mississippi might achieve an efficient and effective operation of their facilities," said MDOC Commissioner Chris Epps. "MDOC is excited about joining Siemens in this energy and cost-savings plan. I look forward to a long productive association with the company."

The program, which began in May, will take eight months to complete. It will involve upgrading existing lighting to higher efficiency lighting in three state prisons (Mississippi State Penitentiary, Central Mississippi Correctional Facility, and South Mississippi Correctional Institute), 17 community work centers, and three restitution centers. The higher efficiency lighting in these facilities will consume 42% less energy.

Siemens will also install an energy management control system to improve the efficiency of heating, ventilation and climate control equipment in the three state prisons, along with an Ozone Re-Circulating Laundry System that will provide significant reductions in both hot water and total water usage.

In addition, Siemens will replace an old 80-ton chiller with a new one at the South Mississippi Correctional Institute. The replacement of older mechanical equipment with new, more efficient equipment, will not only save energy, it will also reduce maintenance cost.

"This venture will result in operational savings that by far exceed the installation cost associated with it, in addition to its continuing maintenance and support costs," said Commissioner Epps.

As a leading provider of building controls, fire safety and security system solutions, Siemens Building Technologies, Inc., makes buildings comfortable, safe, productive and less costly to operate. The company focuses on improving the performance of its customers' buildings, so that its customers can focus on improving their business performance. With U.S. headquarters in Buffalo Grove, Ill., Siemens Building Technologies employs 7,500 people and provides a full range of services and solutions from more than 100 locations coast-to-coast. Worldwide, the company has 29,000 employees and operates in more than 42 countries.

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    Mike Ruggeri