New Power Contracts Push GSA Northeast Region to 95 Percent Green
WORCESTER, MA, April 30 /CNW/ - World Energy Solutions, Inc. (NASDAQ: XWES; TSX: XWE), a leading energy management services firm, today announced the General Services Administration (GSA) Northeast Region will begin receiving renewable power supply on May 1, 2010 from contracts awarded through a November 2009 auction on the World Energy Exchange(R). Under the terms of these 24, 36 and 48-month contracts, GSA is expected to purchase 217 million kWh of electricity for federal facilities, of which 206 million kWh - or 95 percent - is expected to come from renewable sources. Three of GSA's largest facilities in New York City - 290 Broadway, 26 Federal Plaza, and 500 Pearl Street - will receive 100 percent renewable power over the entire term of the awarded contracts.
Jonathan Harvey, Vice President, Government, at World Energy said: "GSA continues to be highly sophisticated in its use of the World Energy Exchange to secure a cost-effective mix of renewable and traditional energy supply. GSA is using the Exchange to assess supply variables, such as contracting periods and the percentage of renewable energy, in order to better manage its portfolio of supply contracts. We believe the different contract terms and electricity sources provide a natural hedge, mitigating future price risk."
Harvey pointed out that GSA will save $3.5 million when comparing new contract rates to the prior ones for the included accounts, even as GSA complied with tougher new green standards imposed by the Department of Energy (DOE). For example, GSA exceeded the DOE's minimum green power procurement requirement while meeting a tighter renewable power definition that requires renewables either be produced from resources located in the NYISO or be delivered into the NYISO. In fact, through the auction process, GSA was able to procure green power within the NYISO at a lower cost per kWh than its last procurement in 2007, before the new definition was in effect.
On April 22, 2010, World Energy attended GSA's Earth Day celebration at the 290 Broadway facility. Commented Phil Adams, President of World Energy: "Participating in this important Green event at a location that will soon be powered by 100 percent renewable energy, thanks to the collective efforts of our teams, is extremely gratifying. The fact that GSA was able to leverage our auction methodology to greatly reduce the price for renewable energy is further testimony to the power of our people, process and technology and the ongoing achievement of our clients, Brian Magden, Energy Program Coordinator for GSA's Northeast and Caribbean Region, and Ken Shutika, Contracting Officer for GSA's Energy Division. As they continue to lead by example, GSA advances its reputation for excellence in green procurement."
World Energy has had a long and successful relationship with the GSA dating back to 2001. Over this period, GSA has won more than a half dozen awards for its energy procurement practices, including a 2002 U.S. Department of Energy Federal Energy Management Award for Innovative Technology for Small Groups for supply procurement in the State of New York, and a 2008 Environmental Award for its pioneering work providing the Statue of Liberty and Ellis Island with green energy. Through World Energy, GSA has procured nearly 11 billion kWh of electricity supply and 100 million Dth of natural gas supply for Federal facilities.
Founded in 1949, GSA manages more than 11 percent of the government's total procurement dollars and $24 billion in federal assets, including 8,600 government-owned or leased buildings and 213,000 vehicles. GSA helps preserve our past and define our future, as a steward of more than 480 historic properties, and as manager of USA.gov, the official portal to federal government information and services. GSA's mission to provide superior workplaces, expert technology solutions, acquisition services, purchasing and E-Gov travel solutions and management policies, at best value, allows federal agencies to focus on their core missions.
About World Energy Solutions, Inc.
World Energy (NASDAQ: XWES; TSX: XWE) operates online exchanges for energy and green commodities. For buyers and sellers of electricity, natural gas, capacity, demand response, and green-energy assets, World Energy's proven approach has transformed the normally complex procurement process into a powerful, streamlined vehicle for cost savings. In addition to enabling customers to seek competitive pricing on traditional energy commodities, World Energy is taking a leadership position in the emerging environmental-commodities markets. Its award-winning World Green Exchange(R) supports the ground-breaking Regional Greenhouse Gas Initiative's (RGGI) cap and trade program for CO2 emissions. For more information, please visit www.worldenergy.com.
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: our revenue is dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; there are factors outside our control that affect transaction volume in the electricity market; and there are other factors identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
SOURCE WORLD ENERGY SOLUTIONS, INC.
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