State Agencies Conduct Three Additional Auctions to Procure Natural Gas
WORCESTER, MA, Sept. 17 /CNW/ - World Energy Solutions, Inc. (TSX: XWE)
today announced that savings derived from the State of Connecticut's first
electricity auction last fall have resulted in even greater savings since the
market run up started several months ago. The Constitution State anticipated
over $12 million in annualized savings at the close of its October 2007
electricity auction. Since then, unprecedented spikes in commodities markets
have resulted in an additional savings of $6 million.
The World Energy Exchange has aided the State in shielding taxpayers from
commodity-price spikes by locking in competitive rates over a fixed timeframe.
The additional $6 million saved from last fall's auction exemplifies how the
auction process helps avoid costs otherwise passed on to citizens. The auction
platform also allowed the State to purchase green power at little to no
premium, garnering Connecticut recognition from the EPA as one of the nation's
top green-power purchasers.
In last fall's October 2007 auction, various Connecticut government
agencies contracted 134,420,000 kWh of renewable power (17% of their total
load) through the World Energy Exchange.
Building on the State's Success
In separate auctions conducted on June 11th, 2008, the University of
Connecticut's (UConn) Rentschler Field, home of the Huskies football team, and
the State's Capital City Economic Development Authority's (CCEDA) conducted
successful electricity auctions on the World Energy Exchange. Both used the
exchange as part of the State of Connecticut's five-year contract with World
The combined annual contract value for the Rentschler Field and CCEDA
auctions was $2.6 million, and the winning supplier for both auctions was Suez
Energy. Ten percent of the total power purchased for Rentschler Field will be
The State also successfully completed its first natural gas auction via
the World Energy Exchange on May 21st of this year. The annual contract value
was $5.8 million for delivery of 1.8 million Dth annually. The winning
suppliers were Direct Energy and Santa Buckley, a local gas supplier. The
State is planning its fifth procurement event on the World Energy Exchange in
the coming months.
"We're really pleased to see other Connecticut agencies follow the
State's lead in using the World Energy Exchange to secure competitive prices
for their natural gas and electricity purchases," said Phil Adams, President
and COO, World Energy. "Moreover, the State of Connecticut has demonstrated
exceptional leadership in greening its energy portfolio, and it's gratifying
to see other state entities following suit."
About World Energy
World Energy Solutions, Inc. operates leading online exchanges for energy
and environmental commodities. Our proven approach provides market
intelligence, promotes liquidity, and creates price transparency for all
market participants, enabling our customers to transact with confidence and to
seek the best possible price. To date, the company has transacted more than
45 billion kWh of electricity, 1 billion kWh of green power and Renewable
Energy Certificates (RECs) and over 100 billion Dth of natural gas. 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; we depend on a small
number of key energy consumers, suppliers and channel partners; 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.
For further information:
For further information: Investor Relations: Phil Adams, World Energy
Solutions, Inc., (508) 459-8100, email@example.com; or Craig Armitage,
The Equicom Group, (416) 815-0700 x 278, firstname.lastname@example.org; Media
Relations: Dan Mees, World Energy Solutions, Inc., (508) 459-8156,