Baltimore (PRNewswire-FirstCall) BGE Commercial Building Systems, a wholly owned subsidiary of BGE HOME and Constellation Energy Source, both members of Constellation Energy Group, announced today that they had been chosen from among several competing suppliers to provide the Johns Hopkins Institutions in excess of 395 thousand megawatt hours of electricity annually to five locations. The locations include: Johns Hopkins University’s Homewood campus, the Johns Hopkins Medical Institutions campus in East Baltimore, Johns Hopkins Bayview Medical Center, Johns Hopkins Asthma Center, and Johns Hopkins Wyman Park Medical Center. The total of expected revenues from all the accounts is $20 million.
As a result of electric deregulation, large commercial businesses must select an energy supplier by July 1, 2002 or begin paying default service rates.
Johns Hopkins, which is one of the largest private-sector electric accounts, was anticipating deregulation and was prepared to make an informed decision. “They are a sophisticated buyer and had comprehensive understanding of electricity concerns; therefore, they were well aware of pricing components and influences, capacity issues, and market movement. Johns Hopkins University uses a thermal storage system, which is critical to pricing structure. We were able to give them a pricing structure that would take advantage of how they use their electricity in order to see tangible economical benefits,” said Bill Munn, President and CEO of BGE Commercial Building Systems.
Contract negotiations with Johns Hopkins were conducted through Constellation Energy Source (CESource), another member company of Constellation Energy Group. The deal was highly competitive because Johns Hopkins had several companies who were competing with each other in order to become their energy supplier of choice. Constellation Energy Source supplied Johns Hopkins with energy studies and analysis that provided additional insight into the dynamics of the marketplace. CESource was then able to craft an offer acceptable to all parties that provided Johns Hopkins with minimal budgetary impact.
“Working together as a team, BGE Commercial Building Systems and CESource are striving to build long term relationships with these important customers,” said Greg Jarosinski, President of Constellation Energy Source.
Note: BGE Commercial Building Systems is a wholly owned subsidiary of BGE HOME and a member of Constellation Energy Group. Constellation Energy Source (CESource) is also a member of Constellation Energy Group. Based in Baltimore, Constellation Energy Group owns energy-related businesses, including a North American wholesale power marketing and merchant generation business, and the Baltimore Gas and Electric Company (BGE). Constellation Energy Group had $3.9 billion in revenues in 2001 and assets of $14.1 billion at December 31, 2001.