Orange accelerates AMI rollout via energy performance contract to capture lost revenue

Orange accelerates AMI rollout via energy performance contract to capture lost revenueThe city council has approved an investment-grade audit with Willdan Energy Solutions to finalize a self-funding infrastructure program that prioritizes water meter replacement alongside energy upgrades.

The City Council approved an Energy and Performance Contract with Willdan Energy Solutions on February 10, 2026, to conduct an Infrastructure Investment Grade Audit.

The proposal includes accelerating the city's existing AMI program to standardize the system and replace aging meters without using new capital or operating funds.

Willdan projects the water metering component will generate $500,000 in annual free cash flow and free up $400,000 annually for other capital priorities.

The audit will involve testing a portfolio of removed meters to quantify accuracy loss and establish guaranteed revenue recovery savings.

The Orange City Council voted unanimously on February 10, 2026, to move forward with an Investment Grade Audit (IGA) with Willdan Energy Solutions, aiming to finalize a scope of work for infrastructure upgrades funded through guaranteed savings. While the broader initiative includes solar and lighting improvements, the acceleration of the city’s water metering program emerged as a central financial driver of the proposal. Colton Gorman, representing Willdan, described the Advanced Metering Infrastructure (AMI) component as offering "substantial financial benefits." The proposed project would accelerate and complete the utility’s existing AMI program, resulting in full standardization across the service area. Gorman projected that the metering upgrades would yield "$500,000 in projected annual free cash flow after the project costs," noting that this would free up approximately $400,000 annually for other capital priorities. The project is being pursued under California Government Code Section 4217, which authorizes public agencies to accelerate energy-efficient upgrades if the project cost is offset by utility savings. Willdan has frequently utilized this mechanism for energy-centric projects, such as HVAC, solar, and electrification upgrades in Dublin, Fairfield, and San Diego. To validate the financial model for Orange's specific focus on water revenue, Willdan will conduct a rigorous audit of the city's current meter inventory. Gorman explained that the firm plans to target approximately 180 locations, removing existing meters—some ranging from 10 to 20 years old—and sending them to a lab for accuracy testing. This data will be used to benchmark the system's current water loss and revenue leakage, allowing the firm to mathematically guarantee the savings generated by the new equipment. Councilmember John Gyllenhammer questioned the mechanics of the audit, specifically asking what Willdan would do to get the water metering assessment done. Gorman clarified that the lab testing of the removed meters is essential to "guarantee those energy savings" and provide a representation of the entire portfolio's accuracy. The approved IGA has a cost of $70,000. If the council chooses to proceed with the turnkey construction projects identified in the audit, this fee will be rolled into the project financing and paid for by the guaranteed utility savings. If the city declines to move forward after the audit is completed, it will be responsible for paying the fee directly. The council approved the contract 6-0, with one member absent.