Shared Savings Program

The Authority completed its first off-balance-sheet operating lease transaction. The financing enabled a hospital, located in the downstate area, to finance an energy savings project on a tax-exempt basis without having to characterize it as debt on its financial statements. The hospital is only required to make payments if the projected savings are realized and if not; a performance guarantee offered by a major energy service company will cover the shortfall. The borrower received the advantages of the Authority’s low interest rate, obtained the benefits of updated assets to reduce the cost of operating, without having to incur additional debt. 

For more information about this initiative please contact Arthur Ware at DASNY at (518) 257-3373 or via email at Aware@DASNY.org.