PITTSBURGH, Nov. 26, 2003 — Strategic Energy, a supplier of retail energy in competitive markets, announced it has re-signed a multi-year electricity supply agreement with Houston-based Energy for Schools (EFS) valued at nearly $200 million.
EFS is an aggregator that provides the largest volume of power to independent school districts in Texas, with more than 135 districts across the state participating in the program. Since partnering with Strategic Energy, EFS members have collectively saved more than $25 million a year off existing electric utility rates, allowing administrators to spend less on operating expenses and more in the classroom.
“By aggregating their load and harnessing their collective buying power, schools have a tremendous opportunity to save money, and no one understands these opportunities better than Strategic Energy,” said Trevor F. Lauer, Vice President of Strategic Energy. “Since we began serving retail customers in 1997, we’ve applied our expertise to generate millions in savings for more than 500 school districts in competitive markets across the country. Most importantly, we understand the education market and the unique purchasing demands school business administrators face.”
Energy for Schools was created when Texas opened its electricity markets to competition in 2001. Organized for the purpose of negotiating the purchase of electricity services for its members, EFS teamed up with Strategic Energy to harness the collective buying power of its members to achieve savings in the wholesale power market.
From its 24/7 Energy Management Center, Strategic Energy leverages EFS’s aggregated load in the wholesale market to secure the lowest-cost power available for program members. Furthermore, the price per kilowatt-hour is capped, so the schools are protected from price volatility throughout the term of the contract.
“We’re pleased to grow this important relationship with Strategic,” said Frank DeLaro, President of Energy for Schools. “Receiving a capped price for electricity gives our members the ability to plan ahead with confidence that their electricity expenses will be within budget each year. And from a partnership standpoint, we continue to be impressed with Strategic Energy’s customer service, timely and accurate billing, and knowledge of the energy markets. They always provide solid information that we can pass along to our members.”
About Energy for Schools
Energy for Schools is a Political Subdivision Corporation (PSC) registered with the Public Utilities Commission of Texas (PUCT). Energy for Schools’ mission is to maximize the benefits of electric deregulation in Texas for school districts. EFS was created specifically to serve the public education market in Texas.
About Strategic Energy
Strategic Energy, headquartered in Pittsburgh since 1986, is an energy management company providing electric load aggregation and power supply coordination services. For a management fee, Strategic Energy buys wholesale power under long-term contracts for direct delivery to retail customers under long-term contracts. The company operates in eight states with retail choice including California, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, and Texas. Majority-owned by Great Plains Energy (NYSE:GXP – News), Strategic Energy’s website is www.sel.com.