Constellation Energy Resources, LLC, a subsidiary of Exelon Corporation (EXC), has entered into the phase 2 of an agreement with The Port Authority of New York and New Jersey, worth $25.8 million, in an attempt to further strengthen the latter’s energy efficiency and water conservation initiatives. The project is part of the Port Authority’s Energy Conservation Improvements initiative and scheduled to be concluded in Dec 2016.
Per the contract, this National Association of Energy Service Companies-affiliated firm will provide a wide array of services to the Port Authority – fitting over 5,000 light-emitting diode (LED) exterior lighting fixtures at the George Washington Bridge, the Goethals Bridge and Outerbridge Crossing, and the Holland and Lincoln Tunnel Roadways.
In addition, Constellation will execute several efficiency improvement measures for the tunnels and bridges, including the installation of interior lighting, building automation controls, and replacement of boilers and chillers at the administration buildings.
Both the Port Authority and Constellation stand to benefit from the transaction. On proper execution of these initiatives, the Port Authority is expected to save operating costs of over $27 million in 20 years. Annually, it is expected to conserve around 1.1 million gallons of water and reduce the generation of greenhouse gases by 3,000 tons throughout the term of the contract. The Port Authority will utilize the accumulated funds for the latest project.
The contract will also ensure stable cash inflow for Constellation, which it will be able to utilize in profitable ventures.
Constellation had prior experience of working with the Port Authority. In Feb 2014, the firm received a contract worth $2.1 million from the Port Authority to install 2,300 energy-efficient LED lights in the Lincoln Tunnel. Moreover, Constellation had previously offered energy conservation measures to the Port Authority for the Port Authority Bus Terminal and the Lincoln Tunnel.
Exelon continues to keep its commitments in terms of maintaining product and service standards along with punctual delivery. This helps the company to win more contracts from public organizations and commercial customers.
In Dec 2014, Commonwealth Edison Company, another subsidiary of Exelon, announced that its Smart Ideas energy efficiency program enabled customers to save over $950 million on their electricity bills along with reducing energy consumption by over 9.8 million megawatt-hours since being launched in 2008.
Exelon helps residential and public customers to install energy efficiency programs at their respective facilities. These initiatives will allow the company to meet environmental regulations and reduce utility bills.
Exelon currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Northeast Utilities (NU), Brookfield Infrastructure Partners L.P. (BIP) and PG&E Corp. (PCG), each carrying a Zacks Rank #2 (Buy).
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