Review of Energy Service Contracts

The Office of the Inspector General initiated a review of the Energy Services Company (ESCO), currently known as the Federal Energy Services Program. The objective of the review was to evaluate whether the program was meeting its intended purpose of providing energy efficiency for the customer. TVA was unable to provide documentation to allow determination of the amount of actual energy efficiency achieved, specifically by ESCO, for two of the three current customers participating in the program. As a result, we were unable to determine the total impact of ESCO in providing energy efficiency for the customer and the degree ESCO supported the accomplishment of TVA's 2020 vision of greater energy efficiency. Also, as part of the audit, we assessed TVA GOES (government, oversight, execution, and support) and business case documentation and found that while substantial improvements were being made to the program, programmatic gaps and other opportunities for improvement existed.