Every year on April 22nd—and throughout the entire month of April—millions of people around the world come together to support their communities and raise awareness about environmental issues and the ongoing fight against climate change. In celebration of Earth Day, our teams demonstrated their dedication to sustainability by taking part in clean-up efforts and community events across the regions we serve. Our efforts go beyond just one day or week: we take pride in the fact that our teams are committed to making a positive impact in our communities all year long.
Our progress to net zero carbon emissions
This year, our team has made significant progress in our commitment to sustainability and decarbonization. To achieve net zero carbon emissions across our operations, we are making critical changes at our central facilities in Boston and Cambridge, with our other systems in cities across the country to follow.
These sustainable upgrades will enable us to serve our customers with eSteam™, our carbon-free thermal energy product. eSteam™ is designed to rapidly decarbonize the highest source of emissions in major cities: commercial buildings.
To offer eSteam™, we are installing electric boilers, industrial-scale heat pumps, and thermal storage at our central facilities. This year, these plans have become a reality with critical electrification upgrades.
Key electrification updates
In 2024, Vicinity installed the electric boiler at its Kendall facility, and the boiler entered service in November 2024. Today, it is generating and delivering eSteamTM to customers like Boston-based college Emerson College. To power the boiler, Vicinity is procuring electricity from renewable, carbon-free energy sources like wind and solar.
Our teams are also actively engineering the river-source industrial-scale heat pump complex that will be used to create eSteamTM at our Kendall facility.
We will install the 35MW industrial-scale heat pump complex at our Kendall facility by 2028. Rather than utilize natural gas, the system will allow us to extract heat from the Charles River and use it to preheat water for our new electric boiler, improving the system’s overall efficiency. From there, the water will be returned to the Charles River at a lower temperature, ensuring no change or damage to the river’s ecosystems.
In 2025, our Grand Rapids operations also made significant progress in their electrification transformation. We officially kicked off our Grand Rapids electrification plans by commencing the installation of our newest electric boiler. Today, the 9MW boiler is being installed, with plans to be operational in 2026.
Vicinity Energy teams commemorate Earth Day
This year, Vicinity’s teams around the country took action to improve the environment and spread awareness of the environmental movement throughout Earth Month, leading up to Earth Day on April 22.
From cleaning up our local parks and rivers to supporting community efforts, our employees took action this year to better the communities we serve for all.
Philadelphia
To celebrate, our Philadelphia team came together to clean up the Schuylkill River Trail, removing debris and helping clean up this shared space.
Boston and Cambridge
Our Boston and Cambridge teams and their families came together to participate in the Run of the Charles, the annual river race held by the Charles River Watershed Association, the leading science and advocacy organization for the Charles River and its watershed and a great partner to our organization.
Baltimore
The Baltimore team kicked off Earth Month with a campus clean up at the University of Maryland, Baltimore (UMB)! The group came together with the Office of Sustainability and Environmental Services, and volunteers to pick up trash around campus.
Facility managers and building owners have many options to consider when it comes to heating and cooling. In many U.S. cities, it’s common to compare the costs of installing and maintaining onsite natural gas boilers against connecting to a centralized system, like district energy.
To ensure you’re making the best energy decision to meet your business objectives, make sure to ask these three key questions:
What are the lifecycle costs?
What are my opportunity costs?
Does this energy option align with our institutional objectives?
What are the lifecycle costs? How to calculate a lifecycle cost analysis
The most effective way to compare between onsite natural gas boilers and district energy is to conduct a lifecycle cost analysis.
What is an energy lifecycle cost analysis?
A lifecycle cost analysis provides the most comprehensive picture of the costs and benefits of potential energy options. This analysis considers many factors, including the equipment’s purchase price, financing costs, and operating and maintaining the equipment over time.
Which variables should I assess in a lifecycle cost analysis?
To get the full picture of the costs of onsite boilers versus district steam, it’s essential to evaluate the following variables:
1. Financing costs
Both natural gas plants and district energy connections typically require an up-front investment. The investment size will vary depending on the natural gas equipment and connection costs for district energy.
Typical investment costs for onsite natural gas boilers include:
Costs of purchasing equipment
Installation costs
Any costs associated with modifying the building space to accommodate new equipment
Loan and interest expenses, if necessary
2. Operations and maintenance (O&M) costs
There are always costs associated with owning, operating, and maintaining energy equipment. But what are operations and maintenance costs?
Full-time staff or contractors to operate the system with the right licenses and certifications
Ongoing maintenance costs, including replacement parts and future upgrades to keep the system running optimally
Consumable materials
Decommissioning costs
While upfront capital investment may be lower, natural gas plants tend to incur much higher operating costs, especially over time as systems age and more maintenance and repairs are needed.
Alternatively, district energy requires little to no O&M budgeting, as many district energy companies employ full-time staff that perform operations and maintenance services for customers.
3. Variable energy costs
While fuel costs are a factor for both district energy and an onsite natural gas plant, there are additional energy costs that help paint a full picture of variable energy costs.
Supply and consumption costs: It’s critical to consider energy supply costs, the price of generating or purchasing electricity. These costs are market-driven and based on demand, so they can change frequently.
Potential carbon taxes or fines: Installing an onsite boiler plant is often a long-term commitment, opening businesses up to the risk of carbon fines that could apply in the future.
Rate structures: It’s vital to evaluate the rate structure associated with natural gas and district energy – whether they are firm, or interruptible, which can impact service.
Flexibility: District energy companies can utilize more sustainable fuel sources, such as renewable resources, as an alternative to fossil fuels. This flexibility means that district energy systems can evolve and adapt to different fuel sources as new technologies emerge.
4. Fixed costs
The fixed costs associated with each option need to be carefully assessed. District energy companies tend typically charge a capacity rate, or a charge to reserve capacity on the system to ensure your load is uninterrupted.
Other fixed costs that should be incorporated are taxes and insurance, which can vary depending upon the option you are evaluating.
What are my opportunity costs?
Even if businesses have the capital on hand to finance new equipment, there are always opportunity costs with every investment decision, such as losing potential gain from other alternatives.
Budget allocation: Investing in a new mechanical room needed for onsite boilers could mean leaving less budget to invest in your core operations, new technologies, upgrades, or expansions.
Space: Typically, mechanical rooms, large chillers, boiler plants, and cooling towers take up a considerable amount of precious space within urban buildings that could otherwise be used for parking or amenities that would improve the tenant experience.
Reliability: Evaluating the cost of a potential outage and downtime is vital in assessing which option to select to best meet your energy needs. Outages can impact your tenants’ safety, comfort, or the well-being of your patients.
Does this energy solution align with institutional objectives?
The last piece worth considering is the alignment of energy decisions with institutional objectives.
Safety objectives
It is also critical to consider how the energy decision will impact the safety of occupants. Opting for onsite natural gas boilers can potentially expose occupants to hazardous chemicals and fumes due to onsite combustion and mechanical equipment. Opting for a district energy service, on the other hand, eliminates the safety risk by generating thermal energy off site.
Sustainability objectives
Many companies and institutions today have sustainability and Science Based Targets initiative (SBTi) goals, and energy decisions can have a direct impact on these programs.
As organizations seek to reduce their carbon footprint, an energy infrastructure decision can be heavily influenced by expected emissions output.
While there are many factors to consider when making an energy decision – from incentive programs, opportunity costs, sustainability objectives and more – a lifecycle cost analysis ensures you are able to make an informed energy decision that meets your institution’s goals and objectives.
Across the country, Vicinity teams are working hard to transform our facilities, enabling us to reach net zero carbon emissions by 2050 or sooner. As we spearhead this next evolution of district energy, we’re sharing key updates at our facilities.
Vicinity’s district energy system in Grand Rapids, Michigan is making key electrification progress, with an electric boiler being installed in the coming months.
Future electrification plans for Grand Rapids revolve around distributed electrification, leveraging existing systems that already benefit from distributed generation and access to renewable resources. The electrification of our operations will allow us to offer eSteam™ to decarbonize our customers’ buildings and communities.
Learn more about the various changes we’re making to decarbonize our Grand Rapids district energy operations below and stay tuned for all future updates on our progress.
Grand Rapids electrification progress
February 2026 update
Since October, key progress has been made at our Fulton Street facility to prepare the electric boiler for service this summer.
Key initiatives include work to install:
Infrastructure at the substation of our local electric utility, Consumers Energy, where our extension will be finalized
A dedicated substation at the Vicinity Energy facility
Mechanical connection of the electric boiler
To optimize space and timeliness, our team is integrating the new electric boiler equipment with the existing systems and infrastructure at the facility.
Electrification progress
To seamlessly integrate the new electric boiler with the existing facility, key upgrades have been made to fabricate a new main steam header extension and interconnect, along with an additional expansion loop for resiliency.
An additional chemical feed system will be installed to meet the conductivity necessary for electric boiler operation. The team is also in the process of installing new recirculating pumps.
Main steam header interconnect and isolation valve
Main steam header expansion loop installation
Boiler feed water interconnect with existing infrastructure
Main steam header fabrication
Boiler recirculating pump installation
Boiler recirculating pump installation
Electrification progress
Progress is being made to install a substation at Vicinity’s facility that will power the electric boiler. All subgrade construction for the substation has been completed.
Electrification progress
Work being done at the local utility (Consumers Energy) to install a dedicated feed to the Vicinity Energy facility to power the electric boiler.
October 2025 update
Our team has been working hard to get the new 9MW electric boiler operational. Construction of the new mezzanine was completed, allowing access to the electric boiler’s supporting infrastructure within the facility.
To operate this new electric boiler, the team is utilizing existing systems at the facility, like the water treatment system, RO system, and feed pump. However, the new electric boiler requires a different level of conductivity. To accomplish this, the team is installing supplemental water treatment to meet required specifications.
The upgrades coming at the facility over the next few months will allow for future growth and capacity. The team is utilizing existing systems and infrastructure at the plant to enable a timelier commissioning of the electric boiler.
Electrification progress
The new mezzanine for the electric boiler was constructed, providing access to the platform that will hold supporting infrastructure for the electric boiler.
Additional view of the new mezzanine.
Installation of the new recirculating pumps for the electric boiler is in progress.
Our customers, partners, and community members joined us at our Grand Rapids facility to mark the beginning of the installation of our new, 9MW electric boiler. Throughout the summer of 2025, the electric boiler will be installed at the facility. Once installed, our carbon-free thermal energy product, eSteam™, will be available to our customers throughout Grand Rapids.
The engineering and construction of this electric boiler is supported by the $2 million grant awarded to Vicinity by the Michigan Public Service Commission in 2024. This transition represents a significant step towards reducing reliance on traditional fuel sources and embracing cleaner, more sustainable alternatives.
Electrification progress
The Vicinity team commemorated the electrification kickoff alongside local business and legislative leaders.
The 9MW electric boiler at Vicinity’s Grand Rapids facility.
Vicinity Energy Grand Rapids team members also joined the kickoff celebration.
Vicinity Energy President and CEO Kevin Hagerty and U.S. Representative Hillary Scholten (MI-3) were the first to kick off the wrench turning ceremony.
Many cities across the United States are finding ways to combat climate change by setting ambitious decarbonization goals to reduce greenhouse gas emissions. Urban buildings are notorious for emitting significant carbon emissions into our atmosphere by using fossil fuels for heating and other energy uses.
Why staying on natural gas could be costly
While many buildings and homes around the world currently rely on natural gas for heating needs, there are several risks factors that are critical to consider when debating whether to remain on natural gas over cleaner fuel sources.
Operating costs and legislative risk
An additional risk building owners must consider is price unpredictability and the looming operating cost increases associated with using natural gas. This legislative uncertainty and price volatility make long-term energy planning difficult.
When buildings install natural gas equipment, they are locked in to using fossil fuels for 30 to 40 years, which is the average life span of the equipment. It’s crucial to review all energy options to ensure that buildings can adapt as climate legislation is implemented over the next 5, 10, or even 30 years.
Onsite mechanical plants require ongoing operation and maintenance. Often, this means bringing on full-time staff or contractors to run the system daily. Owners must check their local regulations to ensure they have factored in the appropriate number of staff with the right qualifications and licensing to meet the city’s operational requirements. They must also account for ongoing maintenance, including parts replacement and future upgrades, to keep the system running optimally.
Health and safety concerns
Fossil fuel-based heating systems, such as oil or natural gas furnaces, can contribute to indoor air pollution, which, according to the EPA, is often more dangerous than outdoor air pollutants due to high exposure levels. They release combustion byproducts such as carbon monoxide, which can negatively impact indoor air quality and overall health.
As carbon consciousness grows among building tenants and investors, so does the demand for green energy solutions that address concerns about reducing carbon emissions in our atmosphere and preserving our natural resources, air quality, and overall health.
By implementing cost-effective and sustainable electrification solutions, building owners can lower carbon emissions, attract environmentally conscious tenants, improve marketability, and enhance the long-term value of their properties.
However, electrifying an existing building can be challenging, expensive, and increase demand for an already overloaded grid network.
Benefits of electrification for building owners
For many building owners, going through a large-scale retrofit project to install electric equipment and facing the increasing monthly cost of retail electricity can be daunting.
The good news is that alternatives are available to aid the transition away from natural gas, without retrofits or upfront capital investment.
By electrifying district energy systems, we can leverage existing infrastructure to ensure access to reliable and environmentally friendly electrons.
Vicinity’s transition to electric boilers and industrial-scale heat pumps to generate carbon-free eSteam™ eliminates the costs associated with constructing new electric substations—costs that would otherwise be passed onto the ratepayers—and avoids the challenge of permitting and citing new electric infrastructure, especially when gaining public support in cities.
Vicinity’s access to transmission-level electricity rates helps overcome financial barriers associated with installing electrification technologies and is more effective and less disruptive than onsite alternatives like built-in electric boilers. eSteam™ is an invaluable tool for cities and building owners aiming to meet sustainability targets, comply with carbon ordinances, and fulfill tenants’ increasing demands for sustainability.
What is eSteam™ and how it works
By opting for the carbon-free thermal energy product, eSteam™, building owners can improve their energy efficiency, reduce their carbon footprint, and prioritize the health and safety of tenants—all while keeping their budgets on track.
By installing electric boilers and heat pumps in its large central facilities, purchasing power from the grid at transmission-level rates, and harnessing the untapped energy from rivers, Vicinity can offer all the benefits of the district energy service our customers count on without compromising reliability.
eSteam™ affordability and operational strategies
Affordability is a cornerstone in Vicinity’s electrification plan, ensuring that the transition to carbon-free solutions remains as cost-effective as possible. We make eSteam™ affordable by utilizing our large systems, existing infrastructure, and access to transmission-level rates to help our customers achieve their sustainability goals.
Further, our energy experts are skilled in procurement and equipment dispatch, which allows us to aggregate large loads and operate our equipment optimally to achieve the highest efficiencies at the lowest cost. Vicinity employs two essential strategies:
“Valley” hunting: We can aggregate the load of our customer base and purchase energy when it is the least expensive. In the future, we will install thermal storage so we can purchase power when it is least expensive, produce eSteam™, store it, and distribute the stored steam when our customers need it.
Optimal equipment dispatch: With our team’s extensive operational experience, we can flexibly adapt and dispatch our generating assets to most optimally serve customers. When affordable renewable energy is accessible, we will procure electricity to produce eSteam™. However, when renewable energy becomes scarce or expensive, we can quickly switch to alternative steam-generating equipment to maintain uninterrupted operations and keep costs low.
Through these operational approaches, we are dedicated to delivering the best possible outcomes for our customers without compromising affordability.
Ready to reduce carbon emissions and future-proof your building? Contact Vicinity Energy to learn more about eSteam™ solutions.
It’s already that time of the year: we are preparing for the 2025-2026 winter season! Vicinity Energy is evaluating weather patterns and trends in the natural gas market to inform our customers of potential price volatility.
Vicinity carefully considers and implements risk mitigation strategies to ensure both reliability of supply and the lowest possible commodity deployment to limit exposure to volatile energy markets.
As fuel prices fluctuate, district energy customers rely on Vicinity’s multiple fuel sources to ensure reliable energy delivery and redundancy. Last winter, natural gas spot prices spiked as extreme cold weather drove heating demand sharply higher, compounded by low storage levels and other supply constraints. Vicinity was able to leverage backup distillate fuel supplies to maintain reliability during gas curtailment and price increase.
Natural gas prices forecast by the numbers
Looking ahead to this winter, market expectations for natural gas prices will be shaped by several key factors: LNG exports, domestic production, gas inventory levels, and La Niña weather patterns.
Henry Hub natural gas price forecast
According to the U.S. Energy Information Administration (EIA), the Henry Hub natural gas spot price is projected to average $3.40/MMBtu in 2025, rising to $3.90 MMBtu in 2026. This increase is largely driven by growing liquefied natural gas (LNG) export demand, as several new export terminals in the US Gulf Coast are expected to come online. U.S. LNG export capacity is forecast to expand from the current 17 Bcf/d to nearly 20 Bcf/d in 2026, and close to 22 Bcf/d in 2027.
As of October 3rd, 2025, the November NYMEX Henry Hub natural gas futures contract settled at $3.32/MMBtu, and current forward markets indicate that the Henry Hub price will average about $3.71/MMBtu in November 2025 through December of 2026.
Natural gas price forecast: winter 2025-2026
The prompt winter November 25 – March 2026 strip is currently hovering about $3.95/MMBTU.
Natural gas storage levels are a critical indicator of natural gas prices, and last year’s trends highlight the market’s sensitivity to supply constraints and demand increase.
A resilient production run rate of 107 Bcf/d, together with an early tapering of summer demand and prolonged seasonal LNG maintenance, enabled storage levels to recover to historical norms. As a result, U.S. natural gas inventories are expected to enter this winter at 3.9 Tcf, about 6% above the five-year average, signaling a healthy supply outlook.
The National Weather Service’s Climate Prediction Center is projecting a La Niña pattern heading into Winter 2025–26. Historically, La Niña winters have produced colder conditions across the North and West, and warmer, wetter conditions across much of the East. This setup increases the potential for mid-winter nor’easters and price volatility, echoing past La Niña events such as the 2014 Polar Vortex, Winter Storm Uri (Feb 2021), and the February 2025 cold blast that impacted much of the Northeast.
How can Vicinity help?
Vicinity’s team of experts is continuously taking action to mitigate potential price spikes for our customers, especially during periods of high usage.
In addition to continuously monitoring the markets and leveraging our considerable backup distillate fuel supplies, Vicinity has proactively procured a portion of our fuel supply ahead of the winter season to help ensure efficiency and reliability. Our market experts believe this approach will serve our customers’ best interests and achieve more bill stability and budget visibility.
What can customers do to keep costs down during the winter?
Take steps to minimize energy use
Lower thermostat settings to at least 65 degrees when buildings are occupied
Lower thermostat settings an additional 5 to 10 degrees when buildings are vacant
Lower temperature settings on water heaters and limit the use of hot water when possible
Open blinds and shades to take advantage of the sun’s natural heat during the day and close shades at night to reduce heat loss through windows
Shut down any non-essential equipment
Temporarily close buildings and encourage employees to work from home so you can keep building temperatures lower throughout the day
Utilize winter preparedness resources: View our winter preparedness checklist to ensure optimal system performance during extreme weather.
Inspections and trap maintenance/insulation: request inspections by Vicinity team to ensure your equipment is optimized for efficient energy use.
Electrification progress
Throughout 2025, Vicinity has remained committed to transitioning our district energy systems away from fossil fuels and has made significant progress electrifying our operations.
In June, Vicinity officially kicked off its Grand Rapids electrification plans by commencing the installation of our newest electric boiler. When the electric boiler enters service in 2026, over 120 of Vicinity’s customers in Grand Rapids will have access to eSteamTM, carbon-free thermal energy, instantly.
In the coming years, we will continue to transform our facilities across the country by electrifying our operations with innovative technologies such as industrial-scale electric boilers, heat pumps, and thermal storage systems.
For questions on how Vicinity can support your businesses’ sustainability goals, reach out to our team.
The information in this blog post is for informational purposes only and is based on sources believed to be reliable. However, Vicinity does not represent or warrant as to its accuracy or completeness. This content does not constitute financial, investment, or trading advice. Any decisions based on this information are made at your own risk. Vicinity is not responsible for any errors, omissions, or reliance on this material.
As the days grow shorter and temperatures drop, heating systems are finally turned on after a long period of disuse. This time of year signals the important task of evaluating a building’s energy system to ensure it’s equipped to deliver heat efficiently and safely. As the days grow shorter and temperatures drop, heating systems are finally turned on after a long period of disuse. This time of year signals the important task of evaluating a building’s energy system to ensure it’s equipped to deliver heat efficiently and safely.
Building owners must establish a preventive equipment maintenance program with their energy provider to maintain efficient energy delivery, avoid equipment failures, reduce energy costs, and ensure the long-term sustainability of a commercial property.
What is preventive maintenance of equipment?
Preventive maintenance, or PM, refers to proactive processes that prevent equipment malfunctions and failures. These procedures ensure commercial heating systems operate effectively and efficiently and maintain their quality over time.
Any proactive measure is considered preventive maintenance. Typically, it’s time-based or scheduled. For example, you may test your pressure regulating valves to prepare for the winter season.
Or, it could be condition-based, where equipment or tools are cleaned once they reach a certain state. You might also service equipment after it’s used a specific number of times. These actions ensure your building’s system works as expected and avoids malfunctions over time.
Why is preventive maintenance for equipment important?
The winter season is a key time to evaluate the equipment used in buildings connected to district energy systems. Taking preventive measures with a building’s heating equipment before the winter season and low temperatures begin in earnest can help to:
Improve equipment reliability and function: Routine maintenance ensures equipment and tools operate as expected and corrects any performance issues.
Reduce energy consumption, greenhouse gas emissions, and operational costs: Preventive maintenance helps you spot opportunities to improve your heating system’s performance.
Prevent unplanned costs, maintenance, and even system downtime: You can reduce downtime by proactively identifying potential problems.
Enhance safety for employees and building occupants: When equipment is operating properly, it creates a safer building environment.
How Vicinity performs preventive maintenance of heating tools and equipment
Preventive maintenance activities can be conducted at any time, but are typically performed in preparation for winter and summer to prepare for peak loads due to temperature changes. Partnering with our customers, Vicinity’s team tailors our preventive maintenance approach to the unique needs of each building.
Depending on the building’s system, our team can isolate a maintenance issue or conduct a small shutdown event to repair equipment. Ahead of low temperatures, buildings can also test their heating system during off-hours or weekends to identify problems with climate control or local area flow control.
However, several elements of district energy systems require annual or more frequent inspection. Let’s dive into the most critical components buildings should focus on when preparing for the heating season.
Conduct steam trap inspections
Steam traps collect condensate to prevent corrosion caused by built-up moisture and ensure that high-quality, dry steam flows through the steam system. Steam traps also block the escape of live steam, minimizing energy waste. Typically done between November and March, steam trap surveys help ensure the efficient delivery of district energy.
A Vicinity technician conducts the steam trap inspection using an ultrasonic digital detector. The process involves locating, identifying, tagging, and periodically testing the performance of the steam trap. If it is the first survey, the technician tags and catalogs each trap for future surveys.
Failed traps can allow large amounts of steam to pass through the equipment before giving up its thermal energy content. Failed traps can lead to water hammers, which damage the building’s system and produce undesirable noise.
Check Pressure Regulating Valves (PRVs)
Pressure regulating valves (PRVs) are designed to reduce incoming steam pressure to ensure safe steam distribution. While typically done in the summer, testing pressure-regulating valves can be done at any time to prepare for the winter season.
Vicinity’s team will typically identify the PRV’s make, model, size, and serial number. They will then test the valve for leaks, clean orifices, test the gauging, and set it to the desired system pressure.
Testing PRVs is important because failed PRVs may cause system over-pressurization and relief valves to release steam into the atmosphere. The PRV can also improperly cycle open and closed, both oversupplying and then starving the downstream equipment of steam. The inspection will include inspecting the PRV operating mechanism (pneumatic, hydraulic, or motor operated).
Evaluate heat exchanger and water samples
A heat exchanger is a system that transfers heat between a source and a working fluid. District energy systems transfer heat from the hot water in the district heating system to the cold water in an individual building’s heating system.
To ensure that heat exchangers function properly, Vicinity’s team takes water samples from the heat exchanger and tests the water for conductivity. This ensures that tube bundles are not leaking and that city water is not entering the system through such leaks.
Vicinity’s team also drains cooling tower heaters during cold weather. When temperatures are expected to be below 20°F for an extended period, the cooling tower basin heaters are drained below the building roof level, the basin heater is turned off, and space heaters are turned on as applicable. Our team also works to adjust glycol or other antifreeze concentrations throughout the cooling system, as required.
Inspect steam piping
Before the winter season, it’s standard to visually inspect steam piping. Vicinity’s team typically checks for leaking joints, watermarks, insulation, and corrosion on the pipes.
This ensures safe, reliable steam delivery into the building and reduces the opportunity for steam to leak into the connected building.
Review the mechanical room hot water loop
In the mechanical room, Vicinity’s team inspects all piping, inlet/outlet temperatures, and pressures on heat exchangers and mechanical pumps.
This inspection confirms the adequate operation of key energy transfer equipment, such as heat exchangers, which supply building heat, hot water, and other process loads. The general condition and function testing of space heaters and heat tracing is important to note as well.
Inspect the condensate return line
A visual inspection of the building’s condensate return line is done ahead of the winter season to check for leaks and corrosion. A condensate return system collects condensate from different points in the system and returns it to the boiler to save energy. This inspection involves checking the condensate pump seals for leaks and vent pipes for vapor emissions. Proper insulation and plugging penetrations is key to preventing freeze-ups.
This inspection is done to avoid condensate water spills and ensure proper evacuation of condensate from system lines, allowing steam-operated equipment to function correctly. The test can also help identify any leaking steam traps in the system.
Vicinity’s facilities take extensive measures to prepare for winter weather before November to ensure our teams are prepared for extreme weather and cold-related emergencies.
Here are three steps that every building should take to ensure winter preparedness:
Designate a ‘weather watcher’ to monitor weather conditions.
Train your team on how to properly remove snow from roofs, roads, and equipment, staff according to needs.
Gather emergency supplies, including steam hoses for thawing frozen lines, portable heaters, antifreeze supplies for cooling systems, shovels, warm clothing and hand protection.
Equipment preventative maintenance schedule for winter
Below is a schedule you can follow to prepare for winter preventive maintenance each year. It summarizes what you should do and when relative to the winter season.
Item / Component
What to Inspect / Do
When (Relative to Winter)
Steam traps
Survey with ultrasonic detector; tag each trap; test performance; repair or replace failed traps.
Late autumn; periodically through winter
Pressure Regulating Valves (PRVs)
Identify make/model; test for leaks; clean orifices; check gauges; adjust to system pressure; inspect mechanisms.
Late autumn; retest before winter
Heat exchanger & water quality
Take water samples; test conductivity; check for leaks; adjust glycol/antifreeze; drain cooling tower basin heaters if needed.
Prior to winter; before sustained sub-20°F
Steam piping
Inspect joints, insulation, corrosion; repair as needed.
Pre-winter and mid-winter
Condensate return lines
Inspect for leaks, corrosion, pump seals, vent pipes; ensure insulation and freeze protection.
Before winter; monitor during winter
Mechanical room/Hot water loop
Inspect piping, measure temps & pressures; test pumps, space heaters, heat tracing.
Pre-winter; checkpoints during winter
Winter readiness/Emergency preparedness
Assign weather watcher; train staff; gather supplies; check heaters & fuel; seal building envelope.
Late autumn; refreshed before major storm
Vicinity’s experts are here to help
Taking proactive steps to maintain your building’s energy systems can lead to significant benefits. From lower energy bills to a reduced carbon footprint, the effort invested in preparing your facility for winter pays off. Vicinity’s energy experts are here to help with all your energy needs. Give our energy experts a call to:
Work on repairs
Submit quotes before the coming heating season
Get help preparing your budgets for next year
Schedule a site visit to get preventive maintenance assessments from our team
How district energy is helping commercial buildings and local communities
District energy uses local resources to tackle broad, global energy and environmental challenges. But what is it, exactly?
District energy uses a centrally located facility, or facilities, to generate thermal energy – heat, hot water or chilled water – for a number of nearby buildings that in effect form an “energy district.” These resources are transported through underground pipes to meet the needs of communities, cities, or campuses – such as colleges, hospitals, airports, or office parks. This provides multiple advantages:
Freedom from asset ownership and maintenance, including associated costs
Energy pricing stability and cost effectiveness
More efficient energy delivery
Greater reliability and redundancy in energy supply
Reduced carbon footprint
The International District Energy Association created this great short video that provides a solid introduction to how and why district energy works so well:
Although district energy has an impressive history (did you know it was originally used to heat the baths of Ancient Rome?), it’s also a constantly evolving technology that uses innovative techniques, fuel sources and infrastructure to provide more efficient, resilient, and environmentally responsible energy than conventional generation sources. According to the United Nations Environment Programme, district energy systems “typically reduce primary energy demand in heating and cooling by 50%,” and can achieve operational efficiency of up to 90%.
District energy is cost-effective
So, is district heating better than onsite energy generation?
There’s a common misconception that onsite energy generation is cheaper than connecting to a district energy network. This faulty conclusion usually arises when the start-up costs of generating energy onsite and the ongoing operations and maintenance (O&M) expenses associated with onsite infrastructure are not considered.
Because district energy customers receive a finished thermal product, they don’t need to pay the millions in upfront capital costs for installation of chillers and/or boilers or the ongoing costs to maintain their own equipment. Onsite heating and cooling infrastructure can represent one of the largest startup costs for a new building and are repeat offenders when it comes to breakdowns that require pricey repairs. It’s important to conduct a lifecycle economic comparison between district energy and onsite generation when comparing the two.
By evaluating variable energy costs, recurring fixed operating costs and upfront capital costs, oftentimes, district energy is the optimal economic solution.
District energy also takes up much less space in a building than onsite generation would. On average, district energy connection infrastructure requires about the same amount of space as a parking spot, which means buildings can make smart, economic use of all the space they would have needed to dedicate to boilers, water towers, cooling systems, thermal storage, and more.
District energy is reliable
One thing that makes it so reliable is that district energy systems have built-in redundancy within its central plants and networks, meaning they can leverage multiple generating assets and fuel, power and water sources. If a piece of equipment or utility source is compromised or experiencing any issues, the system can continue to operate by drawing from its back-up sources and infrastructure. Compare that to what happens to a building’s operations if an issue occurs with an onsite boiler – no heat or hot water until it’s fixed. In fact, a building’s district energy service could eliminate the need for onsite N+1 redundancy.
As global climate and weather conditions become more extreme, the ability to ensure reliable energy even during severe conditions is a growing concern. Because many district energy grids can black-start (meaning they can restart without the aid of external electrical transmission) and can use a range of fuel sources, such systems can maintain a high level of energy uptime even during extreme weather events.
District energy is more reliable in terms of its components and delivery too. With insulated carbon steel conduit piping encased in concrete, a district energy network’s distribution system is more robust and resilient than conventional utility alternatives.
District energy is sustainable
With climate change in full force, every decision we make plays a critical role in healing the planet and minimizing our negative impact on the environment.
Energy production is responsible for a substantial portion of the greenhouse gases that trap the sun’s heat within the earth’s atmosphere. Fossil fuels, such as coal, oil, and gas stand out as the most predominant culprits for climate change, as they are responsible for over 75 percent of global greenhouse emissions and 90 percent of all carbon dioxide emissions. These numbers paint an urgent picture: everyone must play their part in cutting emissions in half by 2030 and reaching net-zero emissions by 2050.
Despite these concerns, a clean energy future is well within reach. The International Renewable Energy Agency (IRENA) estimates that around 90 percent of all decarbonization solutions in 2050 will involve harnessing green energy from renewable sources to improve energy efficiency and supply innovative electrification technologies.
By centralizing and aggregating the production of heat, hot and chilled water to multiple buildings, district energy cuts down on the amount of fuel that would be required by individual buildings using onsite generation, and the resulting carbon emissions. Furthermore, it allows for faster, more complete transitions to clean energy sources as they become available: district energy systems can employ renewable energy sources, like biofuels, wind, solar, and hydro, to produce carbon-free steam and maximize energy efficiency.
District systems and infrastructure can easily be updated to integrate new technologies and/or renewable fuels that benefit a great number of buildings in a geographic footprint. This allows for carbon footprint reductions at a scale that would be impossible to achieve on an individual basis.
As an example, Vicinity Energy delivers thermal energy to over 90 million square feet of space throughout Philadelphia. As the central plant in the district adopts cleaner, green energy approaches, the ripple effect is massive! For example, combined heat and power (CHP) is one technology that Vicinity has employed in several of its districts, including Philadelphia, to provide sustainable, efficient thermal energy to its customers.
Vicinity has also implemented the use of biogenic fuels in our operations. Otherwise wasted vegetable oil from restaurants is then collected and can be burned in our district energy systems as-is, resulting in huge energy and carbon savings. Other technologies include waste-to-energy, geothermal, and other sustainable distributed energy resources.
Bringing it all together, locally and globally
This shift to more efficient renewable fuels and the impacts that only district energy can achieve at such a large scale has brought considerable carbon reductions here in the US and the world over. For example, the city of Anshan in China is projected to reduce its use of coal, a heavy pollutant, by 1.2 million tons each year by combining separate networks into a district, and simultaneously capturing 1 gigawatt of heat wasted by a city steel plant.
Another example is Paris, which has utilized district energy for years to combat air pollution. Today, 50 percent of Paris’s social housing, all of its hospitals, and 50 percent of its public buildings are supplied by district energy. That’s the heat-demand equivalent of 500,000 households! Or look at London, which has a number of district heating projects underway, including the Lee Valley Heat Network, which will provide heat and hot water to over 5,000 homes by capturing waste heat from a nearby EcoPark.
Whether for reasons of price, reliability, efficiency, or to create more sustainable infrastructure for future generations, communities across America and the world are looking locally, joining together, and making a change for the better with district energy.
When facility managers and building owners evaluate energy providers, the decision impacts cost, reliability, sustainability, and long-term risk.
If you’re comparing energy options, these are the most important questions to ask and why they matter.
1. What are the full lifecycle costs of this energy option?
Lifecycle cost is one of the most important factors when choosing an energy provider. It shows the true cost of an energy solution over time, not just the upfront price.
A typical lifecycle cost analysis looks at a 20-year period and includes:
Upfront capital costs
Operating and maintenance expenses
Fuel and energy costs
Fixed costs such as taxes, insurance, and capacity charges
At Vicinity, district energy systems help reduce capital risk by eliminating the need for building owners to purchase, operate, and maintain boilers, chillers, and cooling towers, while offering predictable, competitive pricing.
2. What renewable and low-carbon energy options are available?
Many organizations now have emissions reduction goals, and energy infrastructure plays a direct role in meeting them.
District energy systems are fuel-agnostic, meaning they can integrate cleaner energy sources as they become available, without requiring major retrofits in individual buildings.
Vicinity is actively transitioning our systems to electric boilers, heat pumps, thermal storage, and other clean technologies to support long-term decarbonization.
3. What opportunity costs come with this decision?
Energy infrastructure decisions affect more than utility bills; they affect how capital and space are used.
District energy systems reduce both capital and space requirements, allowing organizations to invest more in their core mission instead of mechanical infrastructure.
4. Will I be able to understand and track my energy usage?
Clear visibility into energy usage helps organizations budget, plan, and improve efficiency.
District energy providers can provide customers with detailed energy reports that highlight usage patterns, peak demand, and opportunities for optimization.
5. How reliable and redundant is the energy system?
Reliable energy delivery is critical for mission-critical facilities.
District energy systems have built-in redundancies with numerous backup sources, equipment, and infrastructure. Because these systems operate at scale, district energy systems can eliminate the risk, headache, and expense associated with maintaining building mechanical rooms.
In addition, the ability to switch fuel allows in the event of an emergency allows district energy systems to be more reliable than other alternatives.
6. What level of support do you provide regarding maintenance and equipment?
Owners must also account for ongoing maintenance, including parts replacements and future upgrades, to keep the system running optimally. Asking energy providers to demonstrate their level of support can help ensure your business will be spending only what is necessary in the future.
By outsourcing the management of energy infrastructure to Vicinity experts, our customers minimize their energy-related costs, maximize efficiencies, and devote more focus to their core mission.
7. What are your emergency procedures in case of power outages?
Emergency preparedness is essential for hospitals, labs, and campuses.
Whether it be a power outage, mechanical interruption, or extreme weather event, your energy provider should be able to detail their plan to resume service and ensure the safety of all parties involved.
District energy infrastructure is designed for resilience, using insulated steel piping and redundant systems. Vicinity teams undergo regular safety training to ensure rapid response during service interruptions.
Making the right energy decision
By asking these questions, organizations can make informed energy decisions that reduce risk, control costs, and support sustainability goals.
In recent years, colleges and universities around the world have been placing sustainability at center stage. More recently, however, green initiatives have become more than just a box to check on a performative action checklist. Talking about sustainability is no longer enough, as students begin to consider the quantifiable efforts of colleges and universities when making their four-year decision.
The United States alone is responsible for 15% of global CO2 emissions. Furthermore, U.S. higher education institutions collectively emit 52,434 metric tons of carbon each year. Carbon dioxide has reportedly reached record-high levels and is the most dangerous and prevalent greenhouse gas in our atmosphere. Excessive carbon dioxide traps heat, resulting in global warming and climate change. Many risks are associated with climate change, including intense rainfall and flooding, rising sea levels, severe heat waves, and air pollution.
Green colleges that are making a positive impact
The current generation of college students is exceptionally carbon conscious and understands that significant changes must be made to combat the climate emergency. In fact, nine in ten Generation Zs prioritize taking small actions daily to protect the environment, such as buying used clothing and sourcing locally grown food. These efforts can be attributed partly to how climate change has impacted their lives: 68% of this generation has been personally affected by extreme weather events, which underlines the urgency of addressing this crisis.
Young adults have begun to realize their voice and are using it to advance causes of particular importance to them. 75% of Gen Zs agree that the world has reached its tipping point regarding climate change. They have taken a broader approach to addressing climate change by considering the sustainable impacts of their more significant purchases and career paths. Students hold colleges to a higher standard by evaluating prospective schools’ sustainable business practices, carbon footprint, and community-based efforts while deciding which universities to attend.
Luckily, as environmental awareness grows among incoming college freshmen, so does sustainability action at their respective universities. Here is a rundown of four American colleges committed to shaping a greener environment:
1. Emerson College
Emerson College, located in Boston, Massachusetts, has prioritized sustainability across all aspects of its organization. In 2007, the College joined 700 other higher education institutions in signing the Carbon Agreement, through which they pledged to work towards carbon neutrality by 2030.
This reduction was made possible in part by the organization’s dedication to meeting the internationally recognized Leadership in Energy and Environmental Design standards (LEED). Four of Emerson’s five residential halls and numerous academic buildings have earned LEED certification.
Since 2018, Emerson has purchased 100% wind electricity, leading the school to be named the largest green power user in the New England Women’s and Men’s Athletic Conference for 2018-2019. This title sits alongside many sustainability awards and recognition the campus has received.
In 2024, Emerson became the first university to decarbonize campus heating with eSteam™, Vicinity’s carbon-free thermal energy product. This marked a significant stride in the college’s goal to achieve a carbon-neutral and resilient campus by 2030. While campus buildings have decreased their carbon emissions by 80% since 2007, this step is an important pillar of the College’s continued carbon reduction strategies, making Emerson’s thermal operations carbon-neutral.
2. University of Pennsylvania
The University of Pennsylvania is an Ivy League research institution in Philadelphia, Pennsylvania. UPenn has demonstrated its commitment to cutting carbon emissions across its organization steadily to reach its goal of 100% carbon neutrality by 2042.
UPenn’s Climate and Sustainability Action Plan outlines its mission to mitigate the impacts of climate change and explore innovative ways of expanding its use of renewable energy to reduce carbon emissions. The University uses district energy to optimize energy efficiency at its advanced MOD 7 chilled water plant.
Additionally, their new power purchase agreement has allowed them to construct solar facilities which will fuel 75% of their academic campus and health system’s electricity demand. These solar farms will support a cleaner and more efficient energy grid. They’ve also expanded recommissioning energy efforts in their labs, classrooms, and offices to stay on par with these sustainability objectives.
3. Arizona State University
Arizona State University, located in downtown Tempe, Arizona, aims to lead the world by example through its sustainability vision. With 65 LEED-certified buildings and 90 solar systems on campus, ASU has gone above and beyond in honoring this vision.
ASU has implemented a circular resource system to minimize waste and accomplish a sky-high reuse value. ASU tracks waste across its organization through a Zero Waste Annual Review and strives to improve its system’s aversion rates and re-circulation characteristics each year.
The University has remained on track with its positive climate initiatives by enhancing energy efficiency. ASU guides its conservation efforts with building-level energy monitors to identify energy waste. In 2019, 51% of the energy consumed by the University came from low-carbon sources. The organization has twice been recognized by the Association for the Advancement of Sustainability in Higher Education for its sustainable purchasing practices, demonstrating its commitment to carbon neutrality.
Colorado State University, located in Fort Collins, Colorado, has dedicated its Student Sustainability Center to provide resources for student-led sustainability work. This center has supported many green innovation projects, such as the Patchwork Initiative, a student-run project to minimize clothing consumption and build a culture around slow fashion and upcycling. This program periodically collects lightly used seasonal clothes from students, faculty, staff, and other community members to create anonymous opportunities for students needing professional clothing or seasonal necessities.
Moreover, the University’s Coalition for Sustainable Student Organizations (CSSO) partners with registered student organizations campus-wide to encourage collective efforts that can better accomplish impactful climate action.
CSU was among the world’s first institutions to calculate its nitrogen footprint. The school’s Nitrogen Footprint Project was created entirely by students at the Sustainability Center. They gathered data from across campus to calculate the nitrogen footprint, checked and double-checked the numbers, and wrote their results in an award-winning research paper.
Leading the charge toward a carbon-free future
Progressive environmental change does not strictly happen at the industry or governmental level. These green colleges demonstrate the reach of community-based sustainability with the support of intelligent, forward-thinking administration and eco-conscious students who push for more visibility into sustainability practices.
Energy bills for Pennsylvania-New Jersey-Maryland Interconnection (PJM) customers are expected to increase by about 30% this year. This is due to a significant rise in capacity pricing passed from PJM to electric suppliers, and ultimately, PJM customers.
Capacity prices increased because of record-high bids secured during the PJM capacity auction last year. Prices continued to rise at this year’s auction, increasing by another 22% that will go into effect starting June 2026 – May 2027. As the demand for energy grows in this region, there’s a greater need for capacity to supply peak-demand days.
In this post, we’ll review what this means for PJM customers and what you can do to reduce costs on your energy bill over the next few years.
What is the PJM capacity auction?
The PJM Base Residual Auction (BRA) is an annual capacity auction where energy suppliers bid on future capacity commitments within the Mid-Atlantic region. PJM holds this auction each year to ensure sufficient load capacity to handle demand increases on the grid in future planning years.
Through the auction, PJM secures forward commitments from generators, demand response providers, and other capacity resources to be available during future periods of peak demand. These resources are compensated with a fixed capacity payment in exchange for their obligation to perform when needed. This ensures that, even in extreme conditions, PJM has sufficient reliable resources committed ahead of time — reducing the risk of shortages or system stress.
How does the PJM capacity auction work?
The PJM BRA auction takes place annually, with results affecting capacity prices 1-3 years into the future. PJM studies the amount of capacity needed and evaluates multiple variables that influence demand on the grid.
The PJM capacity auction sets a fixed price for capacity for a future delivery year. Load-serving entities (such as utilities or retail suppliers) pay this charge to PJM in exchange for access to sufficient generation capacity during peak demand periods. While the capacity rate is fixed for the year, a customer’s monthly capacity charge may vary depending on their contribution to the system’s peak (known as their Peak Load Contribution or PLC). These costs are typically passed through to end users as part of the supply or transmission component of their electric bill.
PJM auction results (2025)
In 2024, the PJM capacity auction cleared record highs, increasing from about $28 to over $250 for some customers. These increases affected the following companies in their respective states:
Additionally, it’s important to note that price increases vary by region. For example, PJM customers in Baltimore experienced a higher increase due to multiple grid factors in that area.
PJM auction results (2026)
In July 2025, PJM announced the results of the 2026/2027 auction. Like the 2024 auction event, PJM anticipated greater demand for energy, and procured 134,311MW of generation resources The greater demand for energy led to higher capacity prices, and in this auction, prices hit the FERC approved cap, increasing by another 22% to an RTO wide clearing price of $329.17/MW-Day.
What does this mean for PJM customers?
Electric customers within the PJM service territory should prepare for a 30% increase in their energy bills starting in June 2025. The next PJM capacity auction for the 2027/2028 delivery year is scheduled for December 2025 and is expected to clear at levels similar to the most recent results.
It’s important to note that electric suppliers are not dictating this charge. It’s passed along as a fixed rate from PJM and attached to the energy bill.
Why are my energy bills increasing?
Capacity prices are increasing due to greater demand on the energy grid and fewer generators in service to meet those needs. As artificial intelligence adds more stress on data centers around the country, more capacity is needed to meet energy demands on high-use days. Maryland, for example, is home to dozens of data centers, which puts more demand on their energy grid. That will naturally increase the price of capacity because PJM needs to supply more energy on peak-demand days. AI’s effect on the energy grid is a common trend that will likely impact suppliers throughout the rest of the country.
Additionally, there are fewer electric generators available to supply energy during this capacity auction. Older generators in this region are being retired due to inefficiencies and decarbonization efforts, leaving fewer providers available to supply energy to these regions. While renewable energy resources are growing, their intermittency—even when paired with battery storage—limits their ability to fully replace the consistent output of retiring thermal generators.
Since there’s greater demand on the grid and fewer generators to meet that demand, those converging factors led to a record-high increase in capacity pricing.
What can PJM customers do to keep costs down?
If you’re a PJM customer, here’s what you can do to keep your energy bills down.
1. Review these seasonal preparation resources.
We’ve put together a few seasonal checklists designed to help building and facility managers prepare for seasonal procedures. They ensure proactive building readiness for summer temperatures, maximize equipment lifespan, and improve overall energy efficiency.
2. Measure usage patterns in your facility or building(s).
The better you understand your energy usage, the easier it is to limit usage and minimize your energy bill. Consider using resources like metering and sub-metering tools to get a feel for how much energy you’re using per department, equipment, or floor. If you’re noticing one area of your property is using more energy than expected, consider using some of the best practices in the next section to reduce your overall usage.
3. Minimize energy usage by following efficiency best practices.
Here are four ways you can minimize energy use in your building:
Set thermostat settings based on building occupancy.
Close blinds and shades during the day to keep offices cool.
Shut down any non-essential equipment.
Temporarily close buildings and encourage employees to work from home so you can keep building temperatures lower throughout the day.
4. Monitor the PJM capacity auction.
Some PJM customers may be surprised by this increase and wonder what they can do to prepare themselves for future changes in the energy market. PJM’s website provides consistent updates on its capacity auction, including key submission dates and milestones to monitor throughout the year. It also provides tools and helpful resources for PJM customers who are looking to learn more about the energy market in their area.
Next steps for PJM customers
PJM customers should prepare for this increase to affect their energy bills starting in June 2025. While capacity prices forecast high until 2028, you can monitor market trends on PJM’s website and follow the steps above to limit energy usage in your facilities. While we’re unsure how prices will change during the next capacity auction, it’s important to keep an eye on this market and understand how these factors can increase demand on your energy grid.
Reach out to your Vicinity Energy account manager with any questions or concerns.
White paper
A faster path to urban decarbonization
Discover how district energy electrification is helping cities achieve their carbon reduction goals. Read Vicinity’s roadmap, real-world results, and what it means for your building.
2. Measure usage patterns in your facility or building(s). 
