Metro Energy Solutions entered into an energy purchase agreement with the City of Orange Housing Authority to provide electricity and hot water at a discount. Metro Energy Solutions will own and operate a 70 kW cogeneration system for the purpose of displacing a portion of the Housing Authority's electricity and thermal load for energy cost savings.

The proposed cogeneration project scope incorporated (1) 70 Kilowatt Tecogen cogeneration module. The cogeneration system was designed to produce hot water only. The sizing for the cogeneration system is based primarily upon the building's average hot water requirement.

The Orange Housing Authority had to make no capital investment. In this project Metro Energy Solutions provided all of the capital and will also provide all of the maintenance during the 12-year term of the contract.

For the next 12 years the Housing Authority will receive a guaranteed 12% discount on all electric and thermal energy provided by the cogeneration system. The new cogeneration system will provide approximately 505,000 kWh per year for the term of the agreement and over $65,000 in energy cost savings.