State Farm Arena and City of Hidalgo Defaults on Payment Employees May Be In The Dark

Hidalgo, TX (MMD Newswire) October 21, 2015 — Visitors to State Farm Arena and employees at 29 City of Hidalgo facilities may soon be without lights. The City of Hidalgo defaulted on making payments on an Energy Management Contract with USA Promlite Technology only 8 months into a seven year service contract. USA Promlite and their client service representative, Enviro-Lite Solutions of Edinburg completed LED lighting projects at State Farm Arena, City Hall, Border Security, Fire Station, Police Department, Court House, Health Department, Boys and Girls Club, Waste Water Treatment Plant, Pump House, Parking Lots, 10th Street and other facilities that reduced energy cost for lighting by approximately 76%.

USA Promlite installed sample lights at the State Farm Arena parking lot enhancing light readings by as much as 300%, but the city has stalled the project by defaulting on making payments under the shared savings agreement. According to USA Promlite “It is unconscionable that the City will not honor the contract or operate in good faith to pay for the lights that the city continues to enjoy and receive substantial energy savings from.”

USA Promlite performed and financed the $4.1 million project with no out of pocket cost to the city under a service agreement that pays off the cost of the project over seven years by sharing the savings on the City’s electricity bill. The City of Hidalgo defaulted on making the monthly payments and has not made a payment since June of 2015. The City continues to enjoy the savings and benefits of new lighting yet has refused to honor the contract or provide specific reasons for non-payment. A preliminary review of the City’s energy bills reflects energy savings that meet or exceed the energy savings guarantee in the contract: however, the City has refused to release data to USA Promlite to complete the 1 year measurement and verification of energy savings. Hidalgo’s default is also impacting payment of services to local contractors including Enviro-Lite Solutions.

USA Promlite continues to own the lights and has the right to remove the lights. USA Promlite is very concerned about removing lights that are critical for public safety but is expected to immediately begin removing lights at Sate Farm Arena and other facilities that are not involved in emergency response to the citizens of Hidalgo. The default may be an indication of the City’s poor financial status or unfamiliarity of the project by new City officials. The default may result in higher interest rates in the future or limit the City’s ability to fund future capital improvement projects. USA Promlite is hopeful the new City Manager will resume making the shared energy savings payments to avoid removal of lights at a substantial cost to tax payers.

Media Contact: USA Promlite Technology 832-755-1325 [email protected]

PRESS RELEASE SOURCE: USA Promlite Technology

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