CITY SAVES NEARLY $1 MILLION THROUGH PRE-PAID ENERGY PROCUREMENT
(7/27/2007) NEW HAVEN- In just six months, the period between January and June of 2007, New Haven has saved $950,000 in energy costs. This savings is the result of an 18-month energy procurement agreement between the City and Constellation New Energy (CNE) that locked in a set energy rate for the duration of the agreement. This agreement protected the City from any energy rate increases allowing it to pay only the locked-in rate.
Last year, the City created an Energy Procurement Committee to plan for its energy needs when New Haven’s contract with United Illuminating Company (UI) expired in December of 2006. Understanding that UI would impose a significant rate hike, the committee was charged with soliciting proposals from other companies in the retail power generation market to save the City money on energy spending.
“The CNE offer was the best fit for us as we were guaranteed that the pricing we negotiated would hold constant throughout that 18-month period,” said Lawrence Rusconi, Director of the Office of Management and Budget. “For fiscal year 2007-08 our estimated cost savings will exceed $2,000,000. In addition, we have secured approval from the Board of Aldermen to negotiate extended agreements for up to 5 years.”
“When combined with the City’s aggressive Energy Conservation Program in all City Schools and City Buildings, cost savings are expected to be even higher,” said Mayor John DeStefano, Jr. “By being proactive we are being very diligent to ensure that the City is operating as cost efficiently as possible. This is an important achievement for New Haven particularly in a time when few other cities are doing anything at all to react to increasing energy prices and it’s good for our budget’s bottom line.”
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