Online Auctions Heighten Competition for City’s Electricity Contract, Delivering Transparency, Liquidity, Savings
March 8, 2013 –Springfield, MA– Mayor Domenic J. Sarno, Phil Adams, CEO, World Energy Solutions, Patrick Sullivan, Executive Director of Parks, Buildings and Recreation Management, Dan Warwick, Superintendent of Schools and TJ Plante, Acting Chief Administrative and Financial Officer announced the successful on line auction to purchase electricity over the next three years. World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, assisted the City to successfully procure over 135 million kWh of electricity. The resulting 35-month contract is expected to save the City more than $2.6 million annually.
Through a series of online auctions run on September 19 over the World Energy Exchange®, the City was able to test multiple terms and products in a transparent and objective manner, receiving 71 bids from suppliers in a competitive format that drove down prices and netted the City and its constituents more than $7.5 million in total contract savings. Delivery under the new terms will begin in July 2013.
Mayor Sarno stated “As we move forward I have directed my team to turn over every stone and achieve savings while at the same time ensure the delivery of services to our residents. I am impressed with this accomplishment and I look forward to continue to find ways to manage the City and find ways to do more with less. I recall 15 years ago when I was a councilor the utilities were always the budget buster. Now we manage our utilities and by knowing the kWh use building by building we can use this data to purchase our power at a reduced rate.”
Patrick Sullivan stated “It is reassuring to know we have assembled a team in the Department of Parks, Buildings, and Recreation Management (DPBRM) that truly manage the day to day use of power by our city departments. Our goal has been and will remain to provide services at the lowest cost for the taxpayer. DPBRM have taken the necessary measures in ensuring our buildings are managed at a high level and by knowing the individual building usage you can properly manage electricity across the city. Also, World Energy has provided a high level of technical guidance of knowing when to auction our electricity and they have been a great resource to the city”
Dan Warwick stated “I am thrilled with this reported savings. This will allow us to provide additional instructional materials to the classroom and additional funding towards school repairs. Properly managing our utilities and fuels has allowed the city and schools to cap increases in costs and maintain a higher level of service to the classroom.”
TJ Plante commented ‘This savings is welcome news as we start planning our FY 14 budget. Across the city we are finding ways to reduce are utility costs and by doing so we can start to stabilize the cutting and ensure services to our residents.”
“Our new energy contract marks the latest in a series of successful strategic initiatives we have undertaken to drive down our total energy costs and deliver significant savings to our taxpayers,” said Mayor Domenic J. Sarno, City of Springfield. “We’ve aggressively instituted a number of energy efficiency measures throughout the City, reducing our energy usage, and now through the efforts of our Procurement team and our partner World Energy Solutions, we have dramatically lowered the price we pay for that energy. This is a winning combination that highlights the benefits of smarter energy management and our ongoing dedication to better serving the citizens of this great City.”
Added Phil Adams, CEO of World Energy Solutions: “We commend the City of Springfield for the measures it is taking to reduce energy consumption and cost. Helping customers navigate the complexities of energy management to meet their goals is central to what we do. What the City has achieved in its recent energy procurement attests to the power of our approach and the value created by our people, process and technology.”
About World Energy Solutions, Inc. World Energy Solutions, Inc. (NASDAQ: XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $30 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $1 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas 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 the following: our revenue and backlog are 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; and there are factors outside our control that affect transaction volume in the electricity market. Additional risk factors are identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
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World Energy Solutions, Inc.