World Energy Solutions' Online Energy Procurement Platform Enables City
to Achieve Budget Certainty Despite Volatile Energy Markets
SPRINGFIELD, MA, June 11 /CNW/ - Mayor Domenic J. Sarno today announced
that Springfield has secured a $47.5 million, 60-month supply of electricity
using the World Energy Exchange online procurement platform. The city's usage
is 48 million kWh annually.
The winning bid came in five percent less than the city had budgeted for
electricity, enabling it to annually reallocate $500,000 dollars to other
"With energy rates at an all time high, we needed a partner who could
help us achieve budget certainty and provide the most efficient procurement
process," said Sarno. "World Energy absolutely met those two objectives, and
the end result was a long-term contract at rates that actually came in five
percent (or $500,000) below our annual budget forecast."
Stephen P. Lisauskas, executive director of the Springfield Finance
Control Board, said the procurement is an example of the many improvements in
energy management the City has made in recent years; including more than
$15 million in energy efficiency investments and improved buying, which is
saving millions of dollars.
"The World Energy contract is another step in the right direction,
allowing the City to lock in rates now and avoid cost increases in the
future," said Lisauskas.
Said World Energy CEO Richard Domaleski: "Increasing energy costs are
putting a strain on city and town budgets across the nation. While the World
Energy Exchange cannot solve the global energy crisis, it can help governments
deal with this crisis by providing them with an exchange where they can secure
competitive prices for their energy contracts, freeing up municipal funds for
schools, police, road repair and other key government functions."
Seamless Online Energy Acquisition
Before it began using the World Energy Exchange, the City of Springfield
procured energy through a consultant using paper-based Requests for Proposals
However, rising energy costs and increased energy market volatility
convinced the City that it should attempt to procure its electricity in a way
that was more efficient, and that would provide the city with the best pricing
available for electricity over the next five years. In addition, the city
wanted a solution that would also fully comply with its bidding rules and
other local, state and federal procurement regulations.
After engaging in an extensive search process for the right energy
procurement solution, the City selected World Energy because of the company's
proven track record in securing highly competitive prices for government
contracts, and its platform's ability to provide date and time-stamped
documentation for each stage of the transaction.
- Auction announced May 10, 2008
- Started at: 9 a.m. on May 20, 2008
- Ended at: 12:20 p.m.
- Twenty separate auction events with varying terms and loads
- A total of eight suppliers placed 127 bids
- ConEdison Solutions was awarded the contract
- The contract total value was $47.5 million for 60 months
- The contracts will supply the city with electricity starting
July 1, 2008
Sam Morgan of ConEdison Solutions said the company is pleased to have won
the contract. "Throughout our 10-year history, we have served numerous
municipalities, and have helped customers achieve budget certainty by
delivering the best available electricity rates. As with all of our customers,
the City of Springfield and its taxpayers will benefit from our significant
energy expertise, financial stability and dependability. We look forward to
working with the City of Springfield and hope to serve them for many years,"
About World Energy
World Energy 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 over 42 billion
kwh of electricity, and nearly 1bb kwh of green power and Renewable Energy
Certificates (RECs) and one trillion cubic feet 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: Azell Cavaan, City of Springfield, (413)
787-7892; Jason Brown, World Energy Media Relations, (646) 202-9759,