"The money that’s saved here will go into advanced care and services for veterans at this hospital.....It’s a good deal all around."
Dr. Leo S. McKayDeputy Secretary
Dept. of Veterans Affairs
MT. HOME ENERGY CENTER
Johnson City, Tennessee
Department of Veterans Affairs Increases Energy Security and Saves Money Through Innovative and Unique Concept
THE OPPORTUNITY
VA was in need of energy efficiency upgrades at their James H. Quillen Medical Center and also was searching for a way to leverage new technology to create a secure source of energy while removing the risk and variability of the hospital’s energy supply ......... and all of this at NO COST to VA or taxpayers!
THE RESULTS
Energy Systems Group developed a first-of-its-kind solution that leveraged a Federal Government public/private development authority to dramatically improve the entire campus. Applying the Enhanced-Use Lease concept, ESG designed, constructed and now operates a full-service energy center which provides electricity, steam, and chilled water to the medical center and school. In addition, all 31 facilities at the center received upgrades to reduce energy use and improve building lifespan. Through this on-going $27 million partnership, VA benefits include:
- Financing Package to Pay for Projects Without Any Capital Expense from VA
- Reliable & Secure Source of Energy to Meet All Campus Needs
- Reduced Energy and Operation Costs to Fund Existing Hospital Mission
- Improved Patient & Staff Working and Living Environment
- Medical Center Receiving a Percentage of Revenues from ALL Energy Sales to Non-VA Customers

PARTNERSHIP HIGHLIGHTS
Services provided by Energy Systems Group to the James H. Quillen Medical Center Campus:
Financing and Bonding Package
Guaranteed Energy Savings
Engineering, Development, Design and Operation
Measurement and Verification Services
Project Management & Ongoing Staff Training
Strategic Energy Master Planning™
Complete Service Energy Center with:
- 4.9 MW of electric generation
- 5,900 tons of chilled water systems
- 3 package steam boilers
- 700,000 gallons of chilled water storage
- 30,000 pounds per hour of steam production for VA
- Upgrades and modifications to HVAC control systems for 38 buildings
- Refurbish and retrofit existing steam supply system
- Centralized steam supply from energy center
