WORCESTER, MA, March 27 /CNW/ - World Energy Solutions, Inc. (TSX: XWE)
announces the successful completion of several on-line energy auctions that is
expected to save a consortium of Delaware state, county and local entities
approximately $8.2 million over a three-year period. The contracts awarded as
a result of the auctions will provide electricity at an average rate of
$0.0815 per kWh, which is a reduction of 11.2 percent from the current year's
Included in electricity contracts awarded to three suppliers - Pepco
Energy Services, Constellation New Energy and Amerada Hess - is a provision
requiring that five percent of the electricity come from "green" sources for
fiscal year 2008, increasing to six percent by the third year of the contract.
In using the World Energy Exchange, the Delaware consortium was able to
achieve its green objectives at no additional cost premium to the price of
The electricity needs of school districts, volunteer fire companies, the
city of Wilmington, Kent County, Sussex County, the University of Delaware and
Delaware Technical and Community College were aggregated for the energy
According to a press release issued by the state Office of Management and
Budget, "The reverse energy auction provides a mechanism to achieve attractive
commodity prices while maintaining fairness for all interested bidders."
Bob Furman, Division Director of Facilities Management for the State of
Delaware, said he elected to use the on-line auction for electric procurement
after hearing a World Energy presentation last summer. "The World Energy
representative convinced me - and everyone else in attendance - that an
on-line auction would generate the most competition," he said, adding that an
incumbent supplier, while "not crazy about the idea," agreed with that
"For a commodity like electricity, the auction makes sense," Furman said.
"Not only is it likely to generate the most competition, but there's a
psychological component in the reverse auction that pushes prices down."
"We're very pleased with the results," continued Furman. "World Energy
did exactly what they said they'd do. The process was simple and
straightforward and it was a 'clean' process. In our evaluation, the awards
are not open to protest or challenge because the prices are what they are."
Philip Adams, World Energy's Chief Operating Officer, commented that
"This procurement supports two key pillars of our strategy - excellence in the
government segment and commitment to the emerging green market - and enhances
our position as the on-line energy procurement solution of choice for state
and local governments.
"Our customer was a coalition of governmental entities with unique needs
and a 'green' component," Adams said. "We were able to address those needs and
satisfy their environmental commitment while reducing their costs. We look
forward to continuing to work with the State of Delaware energy team."
About World Energy Solutions, Inc.
World Energy is an energy brokerage company that has developed the World
Energy Exchange on-line auction platforms, through which a diverse set of
energy buyers and sellers can trade energy, financial instruments and
renewable energy credits in a fiscally efficient and process compliant manner.
To date the company has brokered over 31 billion kilowatt hours of electricity
and 64 million decatherms of natural gas.
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: that our revenue is dependent
on actual future energy purchases pursuant to completed procurements; the
demand for our services is effected by changes in regulated prices or
cyclicality or volatility in competitive market prices for energy; our
dependence on a small number of key energy consumers, suppliers and channel
partners; factors outside our control that affect transaction volume in the
electricity market; and other factors identified in our Registration Statement
on Form S-1 and subsequent reports filed with the Securities and Exchange
For further information:
For further information: Media Relations, Ginger Juhl, Juhl
Communications, (720) 200-4082, firstname.lastname@example.org; or Investor
Relations, Jim Parslow, World Energy Solutions, Inc., (508) 459-8100,