Energy Systems Group Awarded UESC at Maxwell Air Force Base

MONTGOMERY, AL--(Marketwired - August 24, 2016) - Energy Systems Group (ESG), a leading energy services provider and wholly owned subsidiary of Vectren Corporation (NYSE: VVC), in collaboration with its utility partner, Alabama Power Company (APC), a subsidiary of Atlanta-based Southern Company (NYSE: SO), was awarded a $4.4 million Utility Energy Services Contract (UESC) at Maxwell Air Force Base (Maxwell AFB) in Montgomery, Alabama. Host to the 42d Air Base Wing, Maxwell AFB is the site of Air University, a part of the US Air Force Air Education and Training Command.

Consisting of five energy conservation measures (ECMs), the UESC project will save over $572,000 annually over a 10-year performance period. ECMs being implemented include lighting controls and/or retrofits in 18 buildings, heat recovery chillers in 20 buildings, various mechanical retrofits, controls upgrades in 22 buildings, and demand ventilation and retro-commissioning in 6 buildings. ESG will also provide performance verification services in order to validate the savings after project completion. The project is expected to be completed within 13 months.

"Maxwell Air Force Base is vitally important to the state and to our nation's defense," said Tony Smoke, Alabama Power's vice president of marketing. "We are excited to partner with ESG to support the base and its efforts to become more energy efficient."

The UESC project is expected to reduce Maxwell's energy use by over 41,000 MMBtu (one million British Thermal Units) or 12 GWh (gigawatt hours) per year, enough to power nearly 1,100 American homes, and will help the base better meet its energy intensity reduction goals.

"ESG is proud to partner with Alabama Power to implement this UESC project which will help modernize Maxwell Air Force Base while increasing its energy efficiency and resiliency," said Greg Collins, ESG President. "As the key training center for future Air Force leaders, Maxwell AFB will experience an enhanced, energy-efficient learning environment as a direct result of this project," added Collins. "Extensive use of innovative heat recovery chiller technology demonstrates that Maxwell AFB is committed to being on the front lines of energy efficiency while maximizing every energy dollar spent."

The energy efficiency upgrades will reduce greenhouse gases by over 8,400 metric tons of carbon dioxide annually, which is equivalent to planting about 8,000 acres of new forest.

Energy Systems Group (ESG), a wholly owned subsidiary of Vectren Corporation (NYSE: VVC), is a leading energy services provider that specializes in energy efficiency, sustainability, and infrastructure improvement solutions in the government, education, healthcare, commercial, and industrial sectors. ESG is an industry leader in developing and implementing federal government projects with 28 utility partners under Utility Energy Services Contracts and through public / private partnerships such as Enhanced Use Leases. ESG is strongly positioned to develop projects across the full spectrum of federal contracting opportunities, including Energy Savings Performance Contracts with the U.S. Department of Energy and the U.S. Army Corp of Engineers. ESG also offers a full range of sustainable infrastructure solutions including waste-to-energy, distributed generation, and renewable energy. To learn more about ESG, visit www.energysystemsgroup.com.

Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE: SO), provides reliable electricity to more than 1.4 million customers at a total retail price that has been below the national average for decades. Learn more at www.alabamapower.com.