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1 DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP DLA Energy Installation Energy Kevin Ahern Sept. 1, 2010 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 1
2 Natural Gas Natural Gas established in 1990 DLA Energy is the Department of Defense s central procurement agency for direct supply natural gas. DoD s policy is to competitively acquire direct supply natural gas under the natural gas program managed by DLA Energy when cost effective and the program has the same degree of supply reliability as other practical alternative energy sources. DLA Energy is actively managing over 129 million dekatherms of natural gas under single and multiyear contracts 200+ DoD and federal civilian customers across the U.S. and Alaska $112 million in cost savings for FY09 Customer Segmentation (based on qty) Other DoD 2% Fed Civ 23% Army 29% Contract Coverage in 38 States (including Alaska) plus District of Columbia Air Force 19% Navy/USMC 27% 2
3 Electricity Electricity established in 1996 DLA Energy is executing the competitive acquisition of retail open access for Department of Defense and federal civilian agencies in states that have implemented deregulation. The DoD components are encouraged to partner with DLA Energy and aggregate regional electricity requirements to competitively procure electricity and ancillary services. DLA Energy is actively managing over 15.7 million megawatt hours of electricity valued at over $1.2 billion under multiyear contracts Customer Segmentation (Based on $) AF 12% Fed Civ 31% Army 29% Retail Access Implemented, DLA Energy awarded contracts Retail Access Implemented, DLA Energy solicited, no awards Retail Access pending, DLA Energy monitoring market DoD Other 12% Navy/USMC 16% 3
4 Energy Savings Energy Savings Performance Contracts established in 1998 Defense Reform Initiative Directive 21 directed DLA Energy to assist the military Services with using ESPC contracts to reduce energy demand. Partnering with DOE ESPC IDIQ contracts Private sector investment in energy conservation Awarded over $430 million in energy savings performance contracts since Actively engaged with various DoD components to initiate procurement support for ESPC efforts Performing contract administration supporting ESPC task orders valued in excess of $121.5 million for multiple Army locations 4
5 Renewable Energy Renewable Energy established in 2001 In December 2001, DLA Energy awarded its first renewable energy contract on behalf of various DoD and federal civilian customers in Texas in response to Executive Order 13123, which encouraged the federal government to significantly improve its energy management in order to save taxpayer dollars and reduce emissions that contribute to air pollution and global climate change. Issued multiple procurements for long-term (10yr) power purchase agreements to facilitate large and small scale solar photovoltaic efforts at DoD and federal civilian sites Signed a support agreement to provide procurement support to the Army in the development of a geothermal plant at Hawthorne Army Depot, Nev 5
6 Renewable Energy Credits DLA Energy has awarded over 4.5 million megawatt hours of renewable energy credits valued at $6.2 million since ,000,000 DLA Energy REC Purchase Summary ,500,000 2,000,000 1,500,000 1,000, ,000 Landfill Gas Blend (BM/W/LFG) Geothermal Wind Biomass - MWh $ Value MWh $ Value MWh $ Value MWh $ Value MWh $ Value MWh $ Value MWh $ Value
7 Demand Response Demand Response established in 2008 DLA Energy has signed agreements with multiple curtailment service providers across the U.S. and is actively issuing task orders for customer participation in load reduction programs during times of peak demand in return for financial incentives. Signed agreements with 13 curtailment service providers DoD and federal civilian customer participation in PJM, New York Independent System Operator (NYISO), Independent System Operator New England (ISO-NE) and the Electric Reliability Council of Texas (ERCOT) territories Over $1.8 million in credits received since the third quarter of
8 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 8
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