SOURCE: Energy Systems Group

February 27, 2008 17:20 ET

Energy Systems Group (ESG) Signs $5.6 M Contract With World's Largest Naval Station

Naval Station Norfolk Embarks on Energy Conservation

NORFOLK, VA--(Marketwire - February 27, 2008) - Energy Systems Group (ESG) signed their first Utility Energy Services Contract (UESC), teaming up with Virginia Natural Gas, Inc., a subsidiary of AGL Resources Inc., at Naval Station Norfolk, the world's largest naval station. ESG will provide lighting, water, and mechanical system upgrades and will establish the framework for decentralization of the central steam system. In compliance with current energy legislation, these projects are designed to reduce energy, improve infrastructure, and address comfort concerns expressed by Naval Station Norfolk.

The $5,693,529 contract consists of several key energy conservation measures including lighting retrofits, infrared (IR) heating, water conservation and steam to hot water conversion. The total duration of the design and installation effort will be fifteen (15) months.

Early in 2006, ESG began evaluating systems and surveying buildings that comprise Naval Station Norfolk to identify energy conservation opportunities. After surveying more than 40 buildings, this initial phase of work will include lighting retrofits for 28 buildings, water conservation measures for 9 buildings, steam to natural gas conversion for 2 buildings and retro commissioning for 1 building. Two hangars are being removed from the steam system and will become self-sufficient in the heating and cooling process.

"There is a great opportunity to take an energy infrastructure like the steam system that was built in the 1940s and bring it in-line with the Base's vision for 2020," commented John Songer, Senior Project Engineer for ESG.

Donna N. Peeples, Vice President, Sales and Marketing, AGL Resources, says, "At Virginia Natural Gas and throughout AGL Resources' service territory, we are committed to helping the U.S. Navy and all of our federal government customers to meet their mandated energy conservation goals through our UESC program. We are excited about the energy savings work at Naval Station Norfolk and celebrate the continuation of a long and successful relationship."

"It has been a real pleasure working with the Naval Station Norfolk staff. They are extremely professional in their operations and visionary in their energy conservation efforts. The base has a 2020 vision that has been and will continue to be instrumental in guiding Naval Station Norfolk to meet its energy goals," commented Grey Medinger, ESG Account Manager.

Naval Station Norfolk supports military operations in the Atlantic Ocean, Mediterranean Sea, and Indian Ocean. Naval Station Norfolk occupies approximately 4,300 acres and is the world's largest naval station with 75 ships and 134 aircraft homeported when not at sea. With 14 piers and 11 aircraft hangars, Naval Station Norfolk provides repair, refit and training support services as well the opportunity for ship and squadron crews to spend quality time with their families. Naval Station Norfolk is homeport to aircraft carriers, cruisers, destroyers, large amphibious ships, submarines, and a variety of supply and logistics ships. Fixed-wing Aircraft include C-2 Greyhound, C-9 Skytrain II, C-12 Huron and E-2 Hawkeye. Helicopters include the H-3 Sea King, CH-46 Sea Knight, CH-53 Sea Stallion, and SH-60 Seahawk.

Energy Systems Group is an award-winning energy solutions and performance contracting company providing innovative and self-funding solutions improving the efficiency, operation and finances of facility owners. ESG delivers these improvements from offices in Evansville, Indianapolis, Chicago, Atlanta, Baltimore, Johnson City, Raleigh, Nashville, Clearwater, St. Louis, Louisville, Lansing, Little Rock, and Richmond. To learn more about Energy Systems Group, visit their website at www.energysystemsgroup.com. ESG is a wholly owned subsidiary of Vectren Corporation (NYSE: VVC).

About Virginia Natural Gas

Virginia Natural Gas, a wholly owned subsidiary of AGL Resources (NYSE: ATG), provides retail natural gas sales and distribution services to 264,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.com.

About AGL Resources

AGL Resources (NYSE: ATG), an Atlanta-based energy services company, serves more than 2.2 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana. For more information, visit www.aglresources.com.

Contact Information


  • Lawrence Roth
    Vice President of Federal and Renewable Energy Projects
    Telephone: 812-492-3734
    E-mail: Email Contact