1. Definitions
The following terms used within this Contract are defined as follows:
Energy Baseline - A calculation or measure of each type of energy consumed (or, as
appropriate, water consumed or operating and maintenance costs) in existing facilities at the
Premises prior to the installation of energy conservation measures or energy efficiency
measures as described in Attachment 4 - M& V Plan.
Energy Cost Savings Measures (ECMs)/Operating Cost Savings Measures (OCMs) - A
set of activities that result in savings of energy, water or operating and maintenance costs at
the Premises and described in detail in Attachment 2 - Maintenance and Service
Agreement. OCMs include any measures that eliminate and/or avoid expense as a result of
the installation or modification of equipment, or services performed by ESCO. OCMs do not
include any measures that produce savings solely because of a shift in the cost of personnel
or other similar short-term cost savings.
Energy Savings - The reduction in energy consumption or demand resulting from ESCO’s
ECMs/OCMs which shall include electric energy savings, gas energy savings, operational
savings, maintenance savings, water consumption savings and any other savings achieved
as a result of the Work as shall be determined after adjustments for variations in other
factors that might substantially affect the data such as weather, changesin operating
practices or other external influences.
Energy savings shall be determined by comparing the Energy Baseline with the energy
consumed (or demand) after ESCO has implemented ECMs/OCMs. A description of the
promised savings and the terms of the Performance Guarantee with respect to promised
Energy Savings is included in Attachment 4 - M & V Plan.
Final Completion - The date on which ESCO warrants by written notice in the form
provided in Attachment 1 - Final Investment Grade Audit and that all Work is completed
including all remaining items of Work identified in the notice contained in Attachment 10 —
Substantial Completion delivered at Substantial Completion.
Project Acceptance - The date wnen the Customer approves all Work warranted by ESCO
to be at Final Completion, including all remaining items of Work identified in the notice
delivered at the Substantial Completion date. Project Acceptance will not be made until
ESCO has demonstrated, through the Guidelines for Project Acceptance as described in
Attachment 11 - Final Acceptance, that all ECMs/OCMs are achieving all of the stated
savings in Attachment 4 - M & V Plan. Project Acceptance shall be by written notice in the
form provided in Attachment 11 - Final Acceptance.
Substantial Completion - The date on which ESCO warrants by written notice in the form
provided in Attachment 10 — Substantial Completion that installation of ECMs/OCMs is
substantially complete and the Customerhas accepted such ECM/OCM as installed.
4 ESCO Contract — Nashua Schools & EEI, Inc.
