AICUP members work with Utility Solutions, Inc. (USI), an energy procurement and management consultant. to stay apprised of opportunities for more efficient energy purchasing and utilization.
When it was announced that rate caps would be lifted, AICUP, along with USI, developed a plan for AICUP members. A recent email to AICUP members announced the roll-out of the AICUP Electricity Procurement Program for colleges and universities located in the PECO, MetEd and PenElec service territories. For those members, the rate caps will end 12/31/2010—after which, they will be subject to market based pricing.
Fortunately, future electricity costs are currently experiencing a six-year low. Accordingly, it is an opportune time to obtain pricing. Through a competitive bid process, AICUP and USI, selected two companies, Constellation NewEnergy and Sempra, as preferred suppliers. Each have agreed to support a goal of providing competitive and responsive pricing to all AICUP members.
In the PP&L territory, where rate caps ended on 12/31/2009, these suppliers provided excellent pricing and responsiveness to AICUP members signing eight colleges and universities to two-year and three-year terms. Based on this positive experience, AICUP chose to continue with these suppliers as preferred suppliers for the PECO, MetEd and PenElec service territories. One member college, in the PECO service territory, has already executed a three-year agreement.
Participation in this AICUP program is completely voluntary. Given the current market conditions, our member schools are strongly encouraged to obtain multi-year pricing. The preferred suppliers will work with individual schools to determine the impact of the pricing on overall electric costs. Based on experience, a two-year or three-year agreement appears to be the most favorable in achieving budget certainty while minimizing year to year fluctuations.
Each of the preferred suppliers is willing to work closely with member institutions to structure a pricing proposal to meet individual needs. USI is available for consultation at any time to discuss any of these issues. If interested, the first step is to execute a Letter of Authorization allowing the preferred supplier to access account data history. A price offer and draft agreement will be presented within 7-10 business days. Because of market volatility issues, prices are typically only good for the day offered. However, the preferred suppliers are willing to refresh pricing as often as necessary until an institution makes a final decision.
CONTACTS: Lew Cohen, USI (610-642-5180), Art Morris, USI (717-394-2054), Blaire Aull, Constellation NewEnergy (410-470-2033) or Dan Emmett, Sempra (412-585-1609).
AICUP members work with Utility Solutions, Inc. (USI), an energy procurement and management consultant. to stay apprised of opportunities for more efficient energy purchasing and utilization.
When it was announced that rate caps would be lifted, AICUP, along with USI, developed a plan for AICUP members. A recent email to AICUP members announced the roll-out of the AICUP Electricity Procurement Program for colleges and universities located in the PECO, MetEd and PenElec service territories. For those members, the rate caps will end 12/31/2010—after which, they will be subject to market based pricing.
Fortunately, future electricity costs are currently experiencing a six-year low. Accordingly, it is an opportune time to obtain pricing. Through a competitive bid process, AICUP and USI, selected two companies, Constellation NewEnergy and Sempra, as preferred suppliers. Each have agreed to support a goal of providing competitive and responsive pricing to all AICUP members.
In the PP&L territory, where rate caps ended on 12/31/2009, these suppliers provided excellent pricing and responsiveness to AICUP members signing eight colleges and universities to two-year and three-year terms. Based on this positive experience, AICUP chose to continue with these suppliers as preferred suppliers for the PECO, MetEd and PenElec service territories. One member college, in the PECO service territory, has already executed a three-year agreement.
Participation in this AICUP program is completely voluntary. Given the current market conditions, our member schools are strongly encouraged to obtain multi-year pricing. The preferred suppliers will work with individual schools to determine the impact of the pricing on overall electric costs. Based on experience, a two-year or three-year agreement appears to be the most favorable in achieving budget certainty while minimizing year to year fluctuations.
Each of the preferred suppliers is willing to work closely with member institutions to structure a pricing proposal to meet individual needs. USI is available for consultation at any time to discuss any of these issues. If interested, the first step is to execute a Letter of Authorization allowing the preferred supplier to access account data history. A price offer and draft agreement will be presented within 7-10 business days. Because of market volatility issues, prices are typically only good for the day offered. However, the preferred suppliers are willing to refresh pricing as often as necessary until an institution makes a final decision.
CONTACTS: Lew Cohen, USI (610-642-5180), Art Morris, USI (717-394-2054), Blaire Aull, Constellation NewEnergy (410-470-2033) or Dan Emmett, Sempra (412-585-1609).