Case Study: Performance Contracting

Queens University of Charlotte

Queens University of CharlotteCharlotte, North Carolina

Decentralized Steam Plant Provides Significant Energy & Cost Savings

Established in 1857, Queens University of Charlotte serves over 1,600 students. Struggling with a failing centralized steam plant built in 1948, the university’s leadership recognized the need for a transformative solution to modernize their heating systems. Partnering with CMTA through a guaranteed energy savings contract, they replaced the inefficient steam system with ultra-efficient boilers and water heaters in individual buildings. This strategic upgrade aimed to cut natural gas consumption by over 50%, reduce operational costs, and eliminate expenses related to repairs and a rental boiler. The project also aimed to address severe steam leaks that had caused elevated moisture levels in occupied spaces. By transitioning to localized boilers and water heaters and replacing failed equipment, the university significantly advanced the modernization of its mechanical infrastructure while reinforcing its commitment to sustainability.

The Challenges

  • Transition from an aging, inefficient centralized steam plant to localized heating equipment
  • Address steam leaks and elevated moisture levels to improve occupant comfort
  • Install new systems without disrupting campus operations
  • Achieve significant cost savings while minimizing natural gas consumption and improving system redundancy
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Queens University highly recommends the CMTA team. During this project, CMTA proved to be excellent communicators, creative problem solvers, and valuable partners, [providing] solutions that were in tune with our conditions, needs, and budget and [proactively] addressing situations. Created with Sketch.

Matt Packey

CFO, VP for Administration, Queens University of Charlotte

The Solutions

The campus heating and energy system underwent a comprehensive overhaul to address inefficiencies, safety risks, and rising operational costs associated with the aging steam plant. Prior to the upgrade, the 18 buildings served by the centralized steam system faced substantial energy losses and safety challenges due to widespread steam leaks, failing condensate return pumps, and exposed steam piping. The deteriorating infrastructure forced the steam boilers to operate at an elevated base load year-round, as they also provided domestic hot water for residence halls, resulting in a high gas Energy Use Index (EUI) of 61.85 kBTU/ft²/yr. Maintenance issues were further exacerbated by the limited availability of replacement parts for aging equipment. A critical failure of the system during winter, which affected space heating and domestic hot water in several residence halls, highlighted the urgent need for modernization.

In place of this system, CMTA introduced localized heating through the installation of 12 gas-fired condensing boilers and 12 gas-fired condensing domestic water heaters across 14 buildings. By decoupling the heating hot water and domestic hot water systems, the university achieved significant operational efficiencies, particularly during the cooling season, as boilers could now operate with a 15:1 turndown ratio. This flexibility ensured the system could respond more efficiently to actual building load demands, reducing energy waste. Following the upgrade, gas EUI dropped to 29.25 kBTU/ft²/yr, representing a substantial improvement in energy performance.

However, to implement this system, CMTA had to overcome complex logistical and environmental challenges with creative and efficient solutions. One of the most significant challenges was installing 3,700 linear feet of underground EPDM natural gas piping without disrupting the 24/7/365 campus operations. To avoid safety risks, preserve ADA access, and minimize noise pollution, the team employed horizontal boring techniques rather than traditional trenching methods. This innovative approach allowed piping lines to be run beneath existing utilities such as internet, water, and electricity without impacting critical infrastructure or incurring repair costs.

Alongside the heating system retrofit, a series of Energy Conservation Measures (ECMs) were implemented to improve overall electrical efficiency. These included replacing 19 air handling units, 2 rooftop units, and 1 kitchen makeup air unit, as well as recommissioning a previously inactive solar array and completing a campus-wide LED lighting retrofit. The project also involved a full Building Automation System (BAS) recommissioning, integrating advanced controls such as outside air system lockouts, outside air setpoint resets, and variable speed operations with the addition of VFDs. Post-upgrade, the campus-wide electrical EUI decreased from 42.8 kBTU/ft²/yr to 38.69 kBTU/ft²/yr, demonstrating measurable sustainability gains. 

Improving System Reliability and Efficiency

Prior to the project, three of the campus’s existing steam boilers had been decommissioned, and the fourth boiler had been downgraded to operate at only 50% capacity. This configuration presented a major risk, as a failure of the remaining boiler would have left the steam plant unable to provide adequate heating for all campus buildings. Such a failure would have forced the university to rely entirely on the permanently integrated rental boiler, which carried a monthly cost of approximately $10,000 and represented a considerable financial strain. Compounding this issue, underground steam line ruptures had become increasingly frequent, leading to critical incidents that accelerated the project timeline to address the system’s vulnerabilities.

To resolve these issues, redundancy became a key design focus for the new system. CMTA’s design introduced two boilers/domestic water heaters per site, offering 75% redundancy. This approach ensures that the system remains fully operational even if a single piece of equipment fails, significantly improving both reliability and cost efficiency. Post-renovation, the university has experienced reliable operations, with a sharp reduction in cold-related complaints throughout the winter months.

The Results

The modernization project delivered significant environmental and economic benefits, surpassing expectations in multiple areas. Within the first year of operation, the university achieved $419,071 in savings—30% above the guaranteed $322,864. Additionally, the project reduced natural gas consumption by 53%, eliminating 224,735 therms annually and reducing campus greenhouse gas emissions by 1,189 MTCO2e. Beyond energy efficiency, the physical steam plant was demolished, providing an additional 3,000 ft² of campus green space and permeable surfaces. Together, these improvements highlight the project’s success in promoting sustainability and occupant comfort while supporting long-term financial returns, achieving a simple payback period of 23 years.

Queens University of Charlotte Energy Use

[{"x":"JAN","Baseline":"11.9","Guaranteed":"7.7","Actual":"8.7"},{"x":"FEB","Baseline":"22.5","Guaranteed":"14.7","Actual":"16.1"},{"x":"MAR","Baseline":"33.0","Guaranteed":"21.7","Actual":"22.6"},{"x":"APR","Baseline":"42.3","Guaranteed":"28.3","Actual":"28.6"},{"x":"MAY","Baseline":"50.4","Guaranteed":"34.3","Actual":"33.8"},{"x":"JUN","Baseline":"59.2","Guaranteed":"41.3","Actual":"39.3"},{"x":"JUL","Baseline":"68.4","Guaranteed":"48.7","Actual":"45.4"},{"x":"AUG","Baseline":"78.0","Guaranteed":"56.4","Actual":"52.7"},{"x":"SEP","Baseline":"88.0","Guaranteed":"64.1","Actual":"59.8"},{"x":"OCT","Baseline":"98.2","Guaranteed":"71.6","Actual":"66.7"},{"x":"NOV","Baseline":"109.2","Guaranteed":"78.9","Actual":"73.6"},{"x":"DEC","Baseline":"120.4","Guaranteed":"86.3","Actual":"81.4"}]
WHAT DOES THIS DATA MEAN?
BASELINE: THE ANNUAL ENERGY CONSUMPTION BEFORE THE PROJECT
GUARANTEED: CMTA'S GUARANTEED ENERGY USE FOR THE CLIENT POST-PROJECT
ACTUAL: THE MEASURED ENERGY USE AFTER THE PROJECT