Online Auctions Heighten Competition for Leading Dairy Cooperative’s Business, Yielding Rate Savings in Rising Power Markets and Green Energy
Methuen and Worcester, MA – July 17, 2013 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has helped Agri-Mark, a dairy cooperative of 1,250 farm families, including the award winning Cabot and McCadam brands, successfully procure 18 million kWh of electricity for its West Springfield, MA and Chateaugay, NY manufacturing plants.
Through a series of online auctions run on the World Energy Exchange®, Agri-Mark was able to test various terms and products in both markets in a transparent manner and on an “apples to apples” basis. The West Springfield auctions netted Agri-Mark 10 percent green power at a discounted rate, while the Chateaugay event helped the co-op secure attractive fixed pricing for a portion of its load within the ReCharge NY program, providing valuable budget certainty.
“Because energy prices had risen since our last contracts, we needed a procurement process that would maximize competition for our business and deliver the best prices,” said Alan DiBenedetto, Senior Vice President – Corporate Controller at Agri-Mark. “Not only did World Energy deliver that competitive process across two very different markets, significantly increasing the number of suppliers bidding for our business, but the way the auctions were structured yielded excellent results that helped us meet our strategic energy needs for each plant.”
Added Jim Tringe, Operations Planning and Development Analyst at Agri-Mark: “Because World Energy runs the auction tranches in series, enabling suppliers to ‘sharpen their pencils’ along the way, the winning bid for the green-power product offered in our West Springfield event actually came in below the best bid for ‘brown’ power. This made it possible for us to pursue our green energy strategy without premium pricing.
“For our Chateaugay facility, that same process helped us systematically evaluate more than 50 bids for fixed-rate products. This enabled us to take some of our load off the utility’s index rate, which had risen significantly over the past six months, and lock in at a great price for the next two years. We are very excited about the outcome of these auctions. We feel we’ve realized a lot of value from World Energy’s approach to energy management.”
Concluded Phil Adams, CEO of World Energy Solutions: “We expect to deliver great results to our clients, but we still get excited to see customers experience for themselves the advantage of our auction process. It was great to see Agri-Mark try the auction for one of their facilities, embrace it, and come back for more. It was also gratifying to see this deal led by our Connecticut mid-market team, who are gaining traction upselling the auction solution.”
Agri-Mark, with $880 million in 2012 sales, markets more than 300 million gallons of farm-fresh milk each year for more than 1,250 dairy farm families in New England and New York. The cooperative is headquartered in Methuen, Mass., has been marketing milk for dairy farmers since 1913, and actively represents their legislative interests in the Northeast and in Washington, D.C. Agri-Mark farmers own the award-winning Cabot brand of Vermont Cheddar, butter and other dairy products in addition to the McCadam brand of New York Cheddar, Pepper Jack and other cheeses. For more information about Agri-Mark, visit our web site at www.agrimark.coop.
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 $40 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $2 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. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company’s revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company’s services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company’s historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company’s control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.
Source: World Energy Solutions, Inc.