Presbyterian Senior Living Simplifies Energy Procurement with World Energy Solutions and EnergyWise Consulting

Online Auctions Help CFO Reduce Power Costs, Tame Complexity across Growing Senior-Living Network

Dillsburg, PA and Worcester, MA – October 7, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy procurement firm, today announced it has teamed again with channel partner EnergyWise Consulting to help Presbyterian Senior Living, a large and growing senior-living network, successfully procure more than 30 million kWh of electricity for three of its Pennsylvania facilities.

Through a series of competitive auctions run on the cloud-based World Energy Exchange®, Presbyterian Senior Living was able to test multiple terms and products behind the PPL, Penelec and West Penn Power service territories. Leveraging this process, Presbyterian Senior Living received more than 120 real-time bids from 12 qualified electricity suppliers, ultimately securing competitive rates for fixed-price contracts running through 2017. Delivery under the new terms begins in January 2015.

“World Energy’s approach to energy procurement maximizes our buying power and is a close fit with our culture,” said Jeff Davis, CFO, Presbyterian Senior Living. “I know from experience that the auctions will deliver a result marked by the highest transparency, competitiveness and integrity. World Energy provides a super-efficient, super-transparent and super-easy way to buy electricity across multiple sites.”

Since 2009, World Energy and EnergyWise Consulting have worked together to procure electricity – behind six separate utility service territories in Pennsylvania and Maryland – for Presbyterian Senior Living communities. Over the course of that time, Presbyterian Senior Living has turned to the energy management firms to help manage a growing portfolio of sites, accounting for more than $5 million in annual electricity spend.

According to Davis, “If every $5 million contract I had ran this efficiently, I would have a wonderful life. The combination of World Energy and EnergyWise Consulting has turned the headache of buying and managing power for hundreds of facilities into a non-event. Especially in an environment where I am repeatedly required to cut costs, I appreciate the savings World Energy reliably delivers. We could never afford the staff needed to buy and manage electricity across our network the way World Energy and EnergyWise do, but even if we could, I doubt we could do the job as effectively.”

Added Nelson Hoover, Founder, EnergyWise Consulting: “My clients depend on me to meet their energy management challenges, so it’s important that I have the best solutions in the market at my disposal. That’s why I have teamed with World Energy over the years as my energy-procurement partner across my portfolio. As is evidenced by the results we have achieved for Presbyterian Senior Living, World Energy deepens my capabilities as an energy consultant and contributes meaningfully to the success of my clients and business.”

Concluded Phil Adams, CEO of World Energy Solutions, “The success of Presbyterian Senior Living’s energy procurement program highlights key attributes of World Energy’s winning approach. First, our auctions reliably deliver the best price in the market. They do so through a process that maximizes competition and advantages the customer. Second, our collaboration with channel partners broadens their service capabilities while extending our market reach, a win-win that results in productive long-term partnerships and loyal customers.”

About Presbyterian Senior Living

Presbyterian Senior Living is a not-for-profit organization providing retirement and senior-care services for more than 85 years. Headquartered in Dillsburg, Pennsylvania, Presbyterian Senior Living provides services to approximately 6,000 seniors in 29 locations in the Mid-Atlantic region of Pennsylvania, Maryland, Ohio and Delaware. Presbyterian Senior Living fulfills its charitable purpose and mission by providing a full range of high quality healthcare, housing and other related community services directed primarily to people 55 and over. For more information, please visit www.presbyterianseniorliving.org.

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. For more information, please visit www.worldenergy.com.

This press release contains forward-looking statements which involve risk and uncertainties. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “forecasts,” “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, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. 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, 2013 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. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. 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.

For additional information, contact:

Dan Mees
World Energy Solutions
(508) 459-8156
dmees@worldenergy.com
www.twitter.com/wattsworking

Nelson Hoover
EnergyWise Consulting
(717) 581-1900
nelson@energywiseconsulting.com

Source: World Energy Solutions, Inc.

Phillips Academy Secures New Electricity Contract through World Energy Solutions

Online Auctions Attract Robust Supplier Participation and Bidding, Test Numerous Products and Terms

Worcester, MA – September 16, 2014 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management firm, today announced it has helped Phillips Academy, a world-renowned college preparatory secondary school, successfully procure over 26 million kWh of electricity to power its campus.

Through a series of competitive online auctions run on July 25, 2014 over the cloud-based World Energy Exchange®, Phillips Academy tested 12 different terms and products for 80 accounts, including 70 residential buildings. Working with World Energy, Phillips Academy received more than 90 bids from seven electricity suppliers over the course of two hours, ultimately securing a competitive fixed rate. Delivery under the new 24-month contract begins in December 2014.

Since entering its prior electricity contract, Phillips Academy had seen energy prices rise significantly, making it important for the institution to use the best process possible to procure its power, school officials said. By leveraging World Energy’s auction-based approach, Phillips Academy maximized supplier participation in its procurement event and gained valuable visibility into market pricing across products and terms that enabled it to select a contract that delivered the most value to its campus.

“As an alumnus of Phillips Academy, I am delighted by my alma mater’s choice to source electricity through our online platform that promotes competition and price discovery,” said Phil Adams, CEO of World Energy Solutions. “Today, more than 100 secondary schools, colleges and universities enjoy the advantages of World Energy’s approach to energy procurement, something we call ‘Procurement 2.0,’ which helps institutions gain control of the energy buying process and extract the best available price from the competitive market.”

About Phillips Academy

One of the nation’s first independent secondary schools, Phillips Academy – widely known as Andover – stands ready to meet and expand the minds and passions of some of the brightest students in the nation and the world. With 220 faculty members, 300 course offerings, and more than 100 clubs, sports and other programming, Andover offers a broad and deep residential college-preparatory experience. Offering admission on a need-blind basis, Andover seeks to help young people grow intellectually, artistically, athletically and morally. Youth from every quarter from nearly every state and 40 countries study with teachers and scholars who are also coaches, house counselors, advisors, mentors and inspirations. For more information, please see: www.andover.edu.

About World Energy Solutions, Inc.

World Energy Solutions, Inc. (NASDAQ: XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company’s award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. 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 which involve risk and uncertainties. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “forecasts,” “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, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. 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, 2013 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. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. 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.

For additional information, contact:

Dan Mees
World Energy Solutions
(508) 459-8156
dmees@worldenergy.com
www.twitter.com/wattsworking

Source: World Energy Solutions, Inc.

UEO Makes Major Power Purchase through World Energy Solutions

Signs One Year Electricity Contract to Power New Utica Shale Facilities

Kensington, OH and Worcester, MA – September 24, 2013 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has helped Utica East Ohio Midstream LLC (UEO) secure more than 630 million kWh of electricity for its new gas-processing plant in Kensington, Ohio and its new NGL fractionation, storage and rail terminal in Scio, Ohio.

UEO is a joint venture between M3 Ohio Gathering LLC, Access Midstream, L.P. and EV Energy Partners, L.P. and is one of the largest integrated midstream service complexes in eastern Ohio (UEO Buckeye). The UEO complex currently includes 800 million cubic feet per day of natural gas processing and associated NGL fractionation, loading and terminal facilities.

In late 2012, UEO approached World Energy about its power needs in Ohio and worked closely with the firm to establish the key criteria for selecting the right electricity supplier for its new facilities. Criteria included strong ties to Ohio, generation assets and a significant employee presence in the state, and competitive pricing. Leveraging its deep experience in, and understanding of, the Ohio power market, World Energy effectively solicited competitive offers on UEO’s behalf, helping the company secure an attractive service contract.

“World Energy Solutions did an excellent job helping us design and execute a strategy for securing power in Ohio that met our business needs and enhanced our support of business in Ohio,” said Brant Baird, EVP and COO of UEO. “World Energy worked with us every step of the way to ensure our success, tapping into their deep knowledge of the Ohio electricity market and extensive supplier relationships to unlock opportunities and deliver a great outcome. We are excited about the results of our collaboration with World Energy and look forward to continuing our relationship with them on future endeavors.”

Added Phil Adams, CEO of World Energy Solutions: “We’ve been a leader in energy procurement since the advent of electricity deregulation, and over the years we have assembled one of the deepest, most expert teams in the industry. Our people have seen it all and have successfully transacted in every competitive market. There is no substitute for this kind of hands-on experience, the mastery we have developed over our proverbial ‘10,000 hours.’ It is a key ingredient in every deal we transact for our customers and is on full display here in our work for UEO.”

About M3 Ohio Gathering LLC

M3 Ohio Gathering LLC is an affiliate of M3 Midstream LLC (“Momentum”).  Momentum is an independent midstream energy company formed to build, acquire, own and operate midstream oil and gas assets in growth areas of the United States. Momentum’s current focus is the development of greenfield projects that include oil and gas gathering, compression, processing and fractionation. More information is available at www.m3midstream.com.

About Access Midstream

Access Midstream Partners, L.P. (NYSE: ACMP) is the industry’s largest gathering and processing master limited partnership as measured by throughput volume. The Partnership owns, operates, develops and acquires natural gas gathering and processing systems and other midstream energy assets. Headquartered in Oklahoma City, the Partnership’s operations are focused on the Barnett, Eagle Ford, Haynesville, Marcellus, Niobrara and Utica shales and Mid-Continent region of the U.S. Further information is available at www.accessmidstream.com.

About EV Energy Partners

EV Energy Partners, L.P. (NASDAQ: EVEP) is a master limited partnership engaged in acquiring, producing and developing oil and gas properties. More information about EVEP is available at http://www.evenergypartners.com.

 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.

Seeing Is Believing: Energy Auctions Win New Admirers

reverse-auction-bid-historyWe love to see new talent hit the ground running here at World Energy.

Our newest member of the LCI (large commercial & industrial) sales team joined us from a major competitor, and he’s gotten off to a quick start with significant customer wins in Maryland and Michigan. We had a chance to catch up with him fresh off completing his first energy procurement  auctions on behalf of customers.  Here’s what he had to say:

“We took good care of clients at my old shop, but not like this. The unique ability here at World Energy to bring together suppliers through the auction process, compressing the market to get a great price, is superior to anything I have ever experienced.

“I just did an auction for a customer where the incumbent supplier was whispering in the customer’s ear NOT to take their load to auction, and that basically sealed the deal. The customer knew if the incumbent was that worried, there must be something to the auction idea. There certainly is. The client opted for the auction, and it blew away the incumbent’s best price, effectively saving the client tens of thousands of dollars over the life of the contract.

“I’ve seen this from both sides now and can say with confidence that the World Energy auction platform creates the best possible market for the client to achieve the most competitive supplier pricing available.”

World Energy Solutions Selected by TIPS/TAPS Purchasing Program as Approved Energy Services Provider

Designation Increases Government Buyers’ Access to Top Energy Procurement Services, Streamlines Contracting Process

Houston and Dallas, TX – September 12, 2012 – World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has been selected by The Interlocal Purchasing System (TIPS/TAPS) as an approved energy services vendor for its members. TIPS/TAPS, a purchasing cooperative serving public and private school districts, colleges and universities, and other government entities at the federal, state, city, county and municipal levels, is designed to provide participating government buyers with substantial savings and value through cooperative purchasing practices.

The new designation advances World Energy Solutions’ reputation as a leader in government energy procurement while making it easier for new customers to benefit. TIPS/TAPS members can now leverage World Energy Solutions’ leading energy management platform to buy electricity, natural gas and green power directly through the TIPS/TAPS contracting vehicle, streamlining the contracting process.

“World Energy’s track record of providing value, service and savings to government energy buyers makes them a natural for inclusion in TIPS/TAPS, a program dedicated to improving the purchasing process for each of our members,” said Kim Thompson, TIPS/TAPS Cooperative Coordinator. “Adding the expertise, supplier pool and platform proficiency of World Energy to our growing network of services is a win for our members, and future members, here in Texas and around the country.”

Added Brian Dafferner, Vice President at World Energy Solutions: “Our selection to the TIPS/TAPS program is an important win for World Energy in Texas that should open doors to more energy buyers across the State. World Energy shares TIPS/TAPS’ dedication to reducing risk and complexity for government purchasers, making it easier and more effective for them to engage the market to secure the best prices and most value possible for their constituents.”

For more information on how TIPS/TAPS and World Energy Solutions can help with your next energy purchase, please contact Jon Dumas, Account Manager, World Energy Solutions, at jdumas@worldenergy.com or (713) 395-1990 ext. 204; or visit our website at www.worldenergy.com/tipstaps-partnership/.

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 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.

ReCharge NY, but Avoid the Seven-year Itch

As many of you know, the “ReCharge NY” program is replacing the old “Power for Jobs” program that has been in place for many years.  Both of these programs are economic development plans that provide deeply discounted electricity rates to organizations across New York State in hopes of helping them retain and/or hire more workers.  The Power for Jobs program was very successful, but one big problem was that participants were re-allocated these discounts on an annual basis.  This understandably created tension, because participants were never sure if their allocations would be renewed.

The new ReCharge NY program attempts to solve this issue by providing up to 50% of applicants’ power at exceptionally cheap rates (via hydropower), with customers having a one time option of securing the balance of their power at market rate for up to seven years.

Securing the hydropower for up to a seven year period is a no-brainer, in my opinion, and the kind of clear market signal that members of associations like Multiple Intervenors, the Manufacturers Association of Central New York, and the Buffalo-Niagara Partnership have been looking for.  This allows them to budget/plan on a multi-year basis with a fixed price for power on the hydro allocation they are provided by NYPA.  However, what should organizations do about the “market rate” option that NYPA is providing?

This is where customers have options. While participants can accept the hydropower allocation, they will only be given a “one-time opportunity” to take a NYPA market rate or go to market on their own. Which leads to the million dollar question: Is accepting a long-term price by NYPA on “market rate” power really in a customer’s best interest?  Or, put another way, is NYPA going to provide a better price point than organizations can get by going to market themselves?

I think there is good reason to explore the market. If you look at the price of energy over the last seven years, you’ll see that energy prices are considerably lower today than they were back then.  If you had taken even a discounted market rate seven years ago, you might be paying a premium for your energy today.

Alternatively, if budget certainty is your concern, then you may want to consider signing a multi-year agreement – like GSA NY did in a recent auction – but only at the end of a competitive, transparent process where you know you are getting the best price in the market.

Either way, 7 years just seems like too long a time horizon in my opinion.

Bottom line, when you work with World Energy, you will find out what price point to expect through a competitive auction in your region where all suppliers will be invited to compete for your available “market rate” power. We’re hosting a webinar on March 22nd at 2pm to further discuss the “market rate” option for ReCharge NY program applicants and how a competitive auction can yield the best available rates for your organization.  If getting the best available price is your energy goal – please join us!

MY “Five Steps for Planting the Seeds of an Energy-Savings Program”

What struck me about Mario Rufino’s article over at Environmental Leader is how eloquently it frames the backstory of the sustainability officer: well-intentioned, under-funded, and somewhat disconnected.  It highlights what we see every day in our customer work: the importance of a holistic approach to energy management particularly as it pertains to sustainability.

Here are MY “Five Steps for Planting the Seeds of an Energy-Savings Program”

Step One: Understand that your CFO is your Biggest Asset. You don’t have to “operate in survival mode” or do “more with less”.  If you can show ROI, and better yet, a self-funding program, the CFO will give you resources.

Step Two: Understand your Total Energy Costs. Quantity used is certainly one important aspect, and taking steps to be more efficient makes a lot of sense, but don’t forget about commodity price.   Did you know that you can buy green power at little to no premium to conventional power if you source green power as part of an energy procurement?  Are your facilities in deregulated markets on competitive supply or still with the utility?  Is your buying process yielding the lowest price?  If you could save money on the commodity, could you reinvest some of those savings into efficiency or sustainability measures?

Step Three: Create an Integrated Plan. What you do and when you do it matters.  Trying to do more with less?  What about engaging in a demand response program, and then utilizing those ISO payments to fund an efficiency project?  How about tapping utility incentive programs for efficiency projects?  Some utilities reimburse for up to 70% of a project’s costs, think you could convince your CFO to support the other 30%?

Step Four: Let ROI Drive Focus. There are many efficiency measures you can do.  Being analytical about the impact of the project and rigorous about ROI and payback periods will help determine the “batting order” of your plan, and will demonstrate financial savvy that can win points with your CFO.

Step Five:  Lather, Rinse, Repeat. Your plan must be dynamic.  Things change.  Pennsylvania becomes competitive.  Demand Response payments change in PJM.  A utility offers a new incentive program.   Natural gas prices are at all-time lows.   Changes in the regulatory and pricing environment are happening all the time, your plan needs to be nimble enough to react to changing circumstances.

Energy Procurement Arrives in the 21st Century

If you care about saving your company money on energy costs this year, or know someone who does, you owe it to yourself to read Eric Bloom’s post, “Procurement Arrives in the 21st Century.” Eric is an analyst at Pike Research, one of the few industry analyst firms that gets that there is an energy revolution going on and practical ways to harness it. Here is an excerpt that caught our eye at World Energy:

“Still, the procurement industry is stuck in the 20th century. Less than 10% of energy procured by commercial and industrial customers today is traded online. Instead, energy procurement is most often handled on paper and by phone. To illustrate just how far procurement still has to go, think of it this way:  Twenty years ago, if you wanted to book a plane ticket, you had to either call airlines yourself and compare offers or hire a travel agent. Today, you go on Orbitz or another service and instantly compare hundreds of offers. With business customers spending hundreds of billions of dollars on energy every year, you would think the market would have gone in a similar direction….”

This sentiment was on my mind yesterday as the General Services Administration announced a successful, multi-state procurement for its New England Region, which will save the participating agencies over $3.75 million a year.  If you think a paper process can net a similar result, including 150 bids from six suppliers, with 41% of the bids coming in the last 15 seconds of the event, and all done in a fair and transparent manner, then I’ll respectfully let you get back on hold to compare those airline offers.

Case Study: Top 10 LDC Sizzles with Efficiency

The Situation

  • Customer burdened with the manual execution of a complex and time-consuming process for buying winter peaking gas.

World Energy Action

  • In 10 days, World Energy structured and sent to suppliers the inaugural set of auction events featuring temperature trigger and everyday peaking products – 64 tranches total.

Result

  • Extremely competitive auction event with 17 unique bidders and 485 bids.  
  • Full load was awared in a matter of hours, rather than the two full weeks it previously took.

Customer quote

  • “The auction went great and the reports that followed were my lifeline….the spreadsheets summarized everything we needed to know in order to award 660,000 Dths of winter calls….in just a couple of hours!  Pretty amazing to say the least!”