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Electricity Contract Will Save DC Taxpayers an Estimated $30 Million

Monday, January 8, 2007

(Washington DC) Through the Mayor's DC Municipal Aggregation Program Round II (DC MAP II), the District will successfully save an estimated $30 million over the next three years on electricity costs, while doubling its environmental commitment. Former Mayor Anthony A. Williams directed the DC MAP II Task Force, led by the District Department of the Environment (DDOE), the Office of Contracting and Procurement (OCP) and the Office of Property Management (OPM), to expand the aggregation participation, increase the renewable energy requirement over the current 5 percent and create savings for the District. Participation was increased from 330 million kilowatt hours to 1.5 billion kilowatt hours of electricity load, and the renewable energy requirement was doubled to 10 percent.

The District, with the help of Co-exprise, Inc., a technology and strategic sourcing company hired to provide energy procurement services and conduct the reverse auction, awarded Hess Corporation the 36-month contract to supply electricity to the District at the rate of 8.594 cents per kilowatt hour with 10 percent environmentally friendly green power. Doubling the renewable requirement supports the District's commitment to the US Mayors Climate Change Agreement and ensures that the District reduces its contribution to global warming. DDOE, on behalf of Mayor Adrian M. Fenty, plans for a second aggregation auction in the spring and will seek pricing for 15 percent, and 20 percent renewable energy.

The three-year contract includes generation and transmission services for the University of the District of Columbia, the Sports and Entertainment Commission, the Washington Convention Center, the District Department of Transportation Street Lights and Traffic Signals, and the Executive Agencies including DC Public Schools. The contract award was approved by the DC Council with a unanimous vote during the December 19, 2006 legislative session.

For more information on the DC MAP II or to participate in the spring aggregation, contact Sylvia Jones at (202) 673-6744 or Ralph McMillan at (202) 673-6736.