U.S. Capitol Power Supplier Saves $9.5m on Natural Gas

by | Jun 16, 2011

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The facility powering the U.S. Capitol and other key buildings has saved more than $9.5 million on a new 17-month natural gas contract secured through the World Energy Exchange, according to government procurement arm the General Services Administration.

The GSA ran a series of online reverse auctions on the exchange together with energy management services firm World Energy, to procure natural gas for the Central Heating and Refrigeration Plant (pictured) . The facility is the core infrastructure of the Heating Operation and Transmission Division (HOTD), GSA’s district energy utility. HOTD provides steam and chilled water service to government and quasi-government customers in the heart of Washington D.C., and co-generates electricity with natural gas-fired turbine-generators.

The auction process enabled the Central Heating Plant to attract multiple bidders, test various pricing products and terms, and secure a fixed-price contract more than $2.00 per dekatherm (Dth) below its FY11 rate. With World Energy, and under the auspices of the GSA’s Natural Gas Acquisition Program, HOTD was able to solicit competitive bids on different acquisition types, driving bidding to a low market price, World Energy says.

The company says the procurement highlights both the pedigree of the GSA program, which has helped government agencies around the country purchase over $1 billion in natural gas, and the ability of World Energy to continue attracting and serving top government accounts. In 2010 alone, the Natural Gas Acquisition Program delivered over $30.5 million in annual savings and $75.6 million in total contract savings to its participants, the GSA says.

“The results of our auctions on behalf of GSA and its growing roster of government clients continue to demonstrate that our online platform provides the transparency, liquidity and real-time competition energy buyers need to get the most from the market,” World Energy president Phil Adams said.

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