Case Study:Maryland Clean Energy Center

1212 West Street, Suite 200 Annapolis, MD 21401

The Maryland Clean Energy Center (MCEC) is a corporate instrumentality of the State created by the General Assembly with a statute-directed mission to advance clean energy and energy efficiency products, services, and technologies as part of a specific economic development strategy.

Project Overview

In early 2017 Wye River was engaged by MCEC to provide financial advisory services in connection with the acquisition and installation of energy savings equipment from Constellation NewEnergy, Inc. for the benefit of the University of Maryland College Park.

Financing Overview

This transaction was unique in that it involved an Energy Performance Contract between Constellation NewEnergy, Inc. and MCEC in which Constellation NewEnergy, Inc. (without the credit support of its parent corporation) guaranteed measurable energy utility and operational savings. Through a Shared Energy Agreement between MCEC and the University of Maryland College Park, MCEC agreed to share a portion of the energy and operational savings produced by the project with the University, and the University, in turn, agreed to include in its request for State appropriation funds to make payments with respect to the project, calculated as a percentage of the projected energy and operational savings established under the Energy Performance Contract and equaling debt service under the financing. Through an aggressive bank solicitation process, Wye River was able to help MCEC obtain a 15 year interest rate of 2.60% for this $18.3 million tax-exempt financing.

Wye River Group’s Role

Wye River’s provided the following scope of service to MCEC during the planning and implementation of the projects:

  • Coordination of finance team members and responsibilities
  • Preparing cash flow and bond sizing analyses
  • Reviewing draft transaction documents
  • Developing and implementing a plan of finance
  • Developing a list of financing prospects and conducting a competitive financing solicitation
  • Participating in meetings and conference calls with MCEC, the University and Constellation NewEnergy, Inc.
  • Familiarizing lenders with the nuances of energy performance programs
  • Negotiating financing terms and conditions and coordinating closing activities

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