World Energy news releases.
GSA and World Energy Solutions Generate Millions in Savings for D.C.’s Central Heating and Refrigeration Plant
June 15, 2011 at 7:30 am
Capital’s Steam Plant Leverages Pricing Power of Reverse Auctions
Washington, D.C. and Worcester, MA – June 15, 2011 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has helped the Central Heating and Refrigeration Plant of the U.S. General Services Administration (GSA) save more than $9.5 million on a new 17-month natural gas contract.
The Central Heating and Refrigeration Plant is the landmark core infrastructure of the Heating Operation and Transmission Division (HOTD), GSA’s district energy utility serving federal facilities at the heart of Washington D.C. Through a series of online reverse auctions run on the World Energy Exchange®, GSA and World Energy enabled the Central Heating Plant to attract multiple bidders, test various pricing products and terms, and leverage the auction’s design and competitive dynamics to secure a fixed-price contract more than $2.00 per dekatherm (Dth) below its FY11 rate.
The successful procurement highlights both the pedigree of GSA’s Natural Gas Acquisition Program (NGAP), a multiple award-winner which has helped government agencies around the country effectively purchase over $1 billion in natural gas, and the ability of World Energy to continue attracting and serving top government accounts. The event itself showcased World Energy’s expertise in “auction architecting,” the ability to conceive and structure online auctions to maximize price discovery, heighten competition and drive down commodity cost, thus creating an advantage for the buyer. With World Energy, and under the auspices of NGAP, HOTD was able to solicit competitive bids on different acquisition types, driving bidding to a low market price.
“The results of our auctions on behalf of GSA and its growing roster of government clients continue to demonstrate that our online platform provides the transparency, liquidity and real-time competition energy buyers need to get the most from the market,” said Phil Adams, President of World Energy. “The results of the Central Heating and Refrigeration Plant auction in particular serve as a powerful reminder of the art and innovation that infuses World Energy’s approach, highlighting the expertise and creativity of our people, the rigor of our process and the power of our platform.”
Since 2002, GSA’s Natural Gas Acquisition Program (NGAP), in tandem with World Energy, has helped hundreds of federal accounts purchase over $1 billion in natural gas supply contracts. In 2010 alone, the program delivered over $30.5 million in annual savings and $75.6 million in total contract savings to its participants, an accomplishment which has earned Linda Collins, Director of NGAP, GSA’s 2010 Excellence in Acquisition award.
As the federal government’s workplace solutions provider, the U.S. General Services Administration works to foster an effective, sustainable and transparent government for the American people. GSA’s expertise in government workplace solutions include:
- Effective management of government assets, including more than 9,600 government-owned or leased buildings and 215,000 vehicles in the federal fleet, and preservation of historic federal properties;
- Leveraging the government’s buying power through responsible acquisition of products and services making up approximately 14 percent of the government’s total procurement dollars;
- Providing innovative technology solutions to enhance government efficiency and increase citizen engagement; and
- Promoting responsible use of federal resources through development of government-wide policies ranging from federal travel to property and management practices.
The GSA Heating Operation and Transmission Division (HOTD) provides steam and chilled water utility service to government and quasi-government customers at the heart of Washington D.C., and co-generates electricity with natural gas-fired turbine-generators.
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 $20 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 ground-breaking Regional Greenhouse Gas Initiative’s (RGGI) cap and trade program for CO2 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.
Source: World Energy Solutions, Inc.