Partnering for Performance: How Ole Miss and NEMEPA Are Tackling Load Through Conservation
In today’s energy landscape, managing load isn’t just about building new infrastructure or adding capacity; it can also mean finding smarter, more efficient ways to use the energy we already have. For local power companies (LPCs), one often-overlooked opportunity lies in partnering with large customers to uncover energy conservation strategies that can reduce demand across the system.
The University of Mississippi (Ole Miss) and North East Mississippi Electric Power Association (NEMEPA) are proving just how impactful these partnerships can be. With a shared focus on reducing costs, improving infrastructure and advancing sustainability, the university and its power providers have built a model of collaboration that benefits not only the campus but also the larger grid it connects to.
A Clear Need, a Phased Solution
When Dean Hansen arrived at Ole Miss from the University of Texas at Austin, he brought with him a sharp eye for energy efficiency. “I noticed right away that there were significant opportunities for energy savings at Ole Miss,” he said. Utility costs were steadily rising, and the school was juggling growing energy needs with aging infrastructure.
Ole Miss launched a multiphase energy savings performance contract (ESPC) designed to stretch over a decade and upgrade campus systems in prioritized waves. The approach allowed the university to address critical needs while maintaining flexibility in vendor partnerships. Hansen developed a Department of Energy-style RFP and led a cross-campus evaluation team that ultimately selected Trane as its energy services partner.
“Our primary goals were to reduce operating expenses, address aging equipment and start making decisions based on lifecycle cost instead of lowest first cost,” Hansen said. That meant modernizing lighting, updating HVAC systems and improving building automation. So far, the effort has paid off: The university has saved approximately $1.2 million in annual energy costs and cut its energy intensity back to 2018 levels despite continued campus growth.
Collaboration from the Ground Up
Though Ole Miss maintains its own substation, campus distribution network and linemen, it relies on both NEMEPA and Oxford Utilities to deliver power. Buildings at the campus edge and beyond are served directly by those LPCs, and Hansen said their support was essential in planning and implementing the ESPC.
From the earliest stages of the project, Ole Miss engaged with local utilities and TVA. Trane’s engineers worked directly with NEMEPA and Oxford Utilities to gather historical utility data and assess rate structures. That information was crucial in setting baselines and verifying potential savings. “Trane helped us apply for and receive nearly $1 million in TVA rebates and incentives across the five phases of our project,” Hansen noted.
Justin Smith, Director of Engineering and Operations at NEMEPA, underscored that role. “TVA required interval data to determine whether the university qualified for the programs,” he said. “Providing that information is part of how we support all our members in exploring energy solutions.”
Load Impacts that Ripple Out
While NEMEPA didn’t have to make infrastructure upgrades specifically for the ESPC, the utility has kept close tabs on how campus improvements affect its system. “Ole Miss has experienced steady growth over the years, and we must plan accordingly,” Smith said. “Initiatives like this play an important role in maintaining grid reliability — especially during peak events.”
Hansen agreed that while the load reduction benefits are complex to calculate given continual building additions and demolitions, the campus has managed to grow without increasing total energy usage. That’s a win for the university, for its LPCs and for TVA, particularly as the Valley contends with rapid electrification and new industrial demand.
Even without demand response agreements in place, Ole Miss’s energy strategy is helping to shave the top off NEMEPA’s peak, and Smith sees long-term value in the partnership. “Staying engaged with your members and understanding the challenges they are facing and their future plans can help ensure they are aware of what programs are available to them through TVA,” he said.
A Model for Others
The ESPC has also brought broader environmental benefits. So far, it has reduced campus emissions by more than 7.4 million pounds of CO₂, 102,000 pounds of SO₂ and 27,000 pounds of N₂O. LED lighting alone has significantly lowered maintenance costs, and upcoming upgrades to the chilled water loop are expected to improve system resiliency across two dozen buildings.
“Our chancellor recently re-signed the 2nd Nature Climate Commitment,” Hansen said. “This program helps us meet his long-term goals around sustainability while also addressing rising energy costs and deferred maintenance.”
And there’s still more to come. Of the 250 energy conservation measures identified in the initial audit, fewer than 50 have been implemented. Future projects may include solar panels, thermal storage or even co-generation.
Meanwhile, NEMEPA continues to invest in system upgrades, SCADA and AMI to stay ahead of campus and regional growth. Smith said they’re also evaluating new TVA programs, like Resiliency 360, to bring added value to Ole Miss and all its other members.
The Takeaway
The Ole Miss-NEMEPA partnership shows that large institutions can play a critical role in managing load and that LPCs have a vested interest in supporting those efforts. With transparency, coordination and the right incentives in place, these collaborations can yield benefits well beyond a single campus footprint.
“A collaborative approach is best,” Hansen advised. “Find a partner who wants a long-term relationship, not just a transaction. That’s when the real impact happens.”
In a time of rising demand and limited capacity, that kind of partnership might be just what the Valley needs.