Development Process
The development process, as outlined below, typically requires six to eight months from initial customer contact to construction.
Mutual Non-Disclosure Agreement
Metrus and customer enter into a mutual non-disclosure agreement, which initiates the transfer of information. The shared information may include customer’s audited financials, utility billing history, facility operation protocols, or details regarding the ESA structure and pricing. This information is used to verify that the ESA is an appropriate solution for the customer.
Letter of Intent
Metrus and customer enter into a letter of intent that outlines: (1) mutual intent to develop a project using the ESA structure, (2) preliminary project development activities and timeline, (3) exclusivity period, and (4) outline of subsequent project development and implementation steps.
Preliminary Scoping Study
ESCO will complete a preliminary scoping study that summarizes the facility upgrade opportunities, the resulting energy efficiency improvements, and the associated operational benefits. This preliminary scoping study is completed at no cost to the customer, and the customer has no obligation to proceed with the project after the study is complete.
Project Agreement
If the preliminary scoping study identifies a feasible project opportunity, Metrus, customer, and the ESCO sign a binding project agreement. This agreement documents the intent of the parties to develop the project and summarizes the parameters that will be used to determine if the final project scope is “acceptable”. If the final recommended scope meets these criteria and customer does not choose to proceed with the ESA, then customer must pay a break-up fee, which is designed to cover the costs of completing the investment-grade audit. The PA will also define an exclusivity period, during which the parties agree to work towards project implementation.
Investment-Grade Audit
The ESCO will complete an investment-grade audit, which provides detailed cost and savings information for each measure that is included in the project. This report forms the basis for final engineering and design, which streamlines construction activities. Metrus and customer will collaborate with the ESCO during project scoping discussions.
Efficiency Services Agreement (ESA)
After the project scope of work is finalized, Metrus and customer execute the ESA. In parallel, Metrus executes a contract with the ESCO to cover project implementation and the subsequent maintenance activities. With these two contracts in place, the ESCO begins construction activities.
