Note: This page is part of the Governor's News Archive, which holds press releases from January 2009 through September 2011. Since October 2011, recent news can be found in the Newsroom and archived news is available at news.delaware.gov.
April 12, 2010
Retail Electricity Agreement Results in $4.388 Million Annual Savings, More Clean Power for State, Local Governments, School Districts and Higher Education
Dover – Governor Jack Markell announced a three-year-long electricity agreement with Washington Gas Energy Services that will save the State, local governments, higher education institutions and school districts substantial dollars in their yearly energy budgets while boosting the amount of clean power.
The agreement will provide electricity at a rate of $0.0752 per kWh, which is a reduction of approximately 18 percent from the current year’s contract rates. In total, these agreements represent a savings of $13.165 million over three years for the State and its aggregation partners as compared to current contract rates. In addition, the agreement calls for an initial set-aside of 30.5 percent of power to come from clean sources for Fiscal Year 2011 as compared to the current level of 8 percent. The percentage of clean power purchased will increase to 35 percent by the third year of the contract.
“We will continue to push for ways to drive down the cost of government,” Governor Markell said. “These electricity agreements not only save taxpayers’ money but allow the state to increase the amount of clean power it uses in state facilities. I am pleased we were able to make energy purchases that represent a win-win for Delawareans.”
In March, Governor Markell signed Executive Order #18, setting forth a broad agenda for Delaware to lead by example in energy efficiency efforts, waste management and renewable energy purchases. The results of today’s auction achieves the 30% renewable energy target in the Order ahead of schedule and ties into the Governor's broader efforts to integrate energy efficiency and renewable energy into state operations to save money, reduce environmental impacts, and create jobs in Delaware.
“We are very pleased with the results of today’s auction,” said Ann Visalli, director of the Office of Management and Budget. “By combining our electricity purchase with all of our aggregation partners, we were able to secure very favorable prices from electricity generators using the innovative reverse auction methodology.”
“Saving money while buying cleaner, less polluting energy is a great deal for Delawareans," said Collin O'Mara, secretary of DNREC. "Through OMB's innovative approach to energy procurement, Delaware is once again leading by example and demonstrating the way toward a cleaner energy economy"
The State’s partners for the energy bid includes school districts, volunteer fire companies, New Castle County, Kent County, Sussex County, the University of Delaware, Delaware Technical and Community College, the Delaware Solid Waste Authority and the Riverfront Development Corporation.
The State worked in conjunction with World Energy Solutions, a leader in the online energy brokerage market, on a reverse energy auction. The reverse energy auction provides a mechanism to achieve attractive commodity prices while maintaining fairness for all interested bidders.