The Denver Housing Authority today announced it is launching an efficiency program that will cut an estimated 25 percent of the authority's annual energy cost, saving it about $1.8 million a year.

The authority is being initiated through a $16 million Energy Performance Contract with Honeywell.

The program will be unveiled at 1 p.m. at the DHA's Quigg Newton Homes, 4403 Lipan St.

"DHA's investment in these massive energy upgrades demonstrates our commitment to conservation," Ismael Guerrero, DHA's executive director said in a statement.

"In the process, we are educating 7,700 residents to be green-minded consumers."

Salina Newman and her two sons will be the first to move into a DHA energy efficient home.

Denver Mayor John Hickenlooper applauded the program.

"Sustainability is not only about creating a strong economy that also protects the environment," Hickenlooper said. "True sustainability should ensure that economic opportunity flows out into all neighborhoods.

Hickenlooper thanked the Housing Authority's board, staff, the U.S. Department of Housing and Urban Development and "other partners for this ambitious program — an important step in our journey to becoming a balanced energy capital of the West."

DHA began the process by hiring Honeywell to conduct an energy audit in January 2006.

The audit examined, among other things, weatherization, electricity and water consumption of DHA buildings.

The audit showed that the Denver Housing Authority would derive significant benefit by implementing comprehensive energy-saving measures.

The new improvements will be installed in approximately 3,700 public housing units across the city, impacting nearly 7,700 very low, low and moderate-income residents.

"The installation of energy-saving devices in homes is generally out of reach for low and moderate-income families," said Bill Mosher, the chair of the DHA board.

"We are pleased with the fact that we are able to provide this for DHA residents as well as begin to create a culture of energy conservation among the families we serve," Mosher added.

In the Denver area, the average utility costs are approximately $1.54 per square foot.

For public housing units, the average utility cost is $2.61 per square foot, or nearly double the area average. All DHA property management staff and residents will receive training on the energy-saving upgrades.

The type of energy improvements to be installed include: retrofit common and tenant lighting areas, high efficiency appliances and furnaces, low flow water faucets, shower heads and toilets, windows, building envelope improvements, irrigation systems, high limit thermostats, demand control ventilation and high efficiency boilers.

Energy-saving measures also include a pilot geothermal heating and cooling system, one of approximately 30 systems in Colorado and the largest in the Denver area. Building improvements will have the 20-year life cycle and will have the same environmental impact as planting 460,000 trees and enough water savings to fill 80 lakes the size of Ferril Lake at Denver's City Park.

Construction has already begun and is scheduled to be completed by August 2008.

Honeywell acts as the general contractor for the project and subcontracts the work.

"More than half of a city's greenhouse gas emissions are generated by buildings," said Joe Puishys, president of Honeywell Building Solutions. "Given the number of facilities involved in the project, this is an important undertaking not only for the DHA and its residents, but the entire Denver community."

rebchookj@RockyMountainNews.com or 303-954-5207