New program to aggregate large healthcare facility purchasing group to reduce costs in competitive electricity market
PITTSBURGH, April 26, 2004 — Strategic Energy, a leading supplier of retail electricity in competitive markets, announced it has been endorsed by GNYHA Services, Inc., an affiliate of the Greater New York Hospital Association (GNYHA), to develop and implement an electricity aggregation program for its members.
Under the terms of the agreement, Strategic Energy will aggregate and manage the electricity usage of up to 250 regional hospitals in order to achieve the best electricity prices available in the wholesale market. The new initiative is GNYHA Services’s first-ever energy aggregation program available to members in regional markets with active electric choice programs, including New York, Connecticut and New Jersey. In selecting Strategic Energy to administer the program, GNYHA Services considered the company’s solid track record serving retail customers as well as its experience managing electricity for large healthcare facilities.
“Hospitals use large amounts of electricity around the clock, so giving our members an opportunity to reduce these costs can provide a significant bottom line advantage,” said Alfred J. LoBiondo, GNYHA Services’s Senior Vice President of Supply Chain Management. “As an experienced player in the deregulated electricity industry, Strategic Energy will help us to navigate the energy markets and provide our members with cost reductions wherever possible.”
The GNYHA Services/Strategic Energy program offers each member a competitive price per kilowatt-hour that is capped throughout the term of the agreement, providing health facilities with budget certainty as well as the potential for additional savings through Strategic Energy’s unique electricity portfolio management approach.
“Today’s hospitals operate within very tight budgets, so the ability to generate savings on overhead costs can make a drastic bottom line impact,” said Trevor F. Lauer, Vice President of Strategic Energy. “Plus, by locking in a price at a competitive rate over the life of the contract, hospital administrators can focus on delivering quality healthcare with peace of mind, knowing their energy expenditures will be within budget.”
About GNYHA Services
GNYHA Services is an affiliate of the Greater New York Hospital Association (GNYHA) that provides business services and group purchasing programs to health care facilities. GNYHA is a trade association representing more than 250 not-for-profit hospitals and continuing care facilities, both voluntary and public, in the metropolitan area and throughout the State, as well as in New Jersey, Connecticut, and Rhode Island.
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 nine states with retail choice, including California, Connecticut, 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.
Doug Colafella, 412-644-3095
Great Plains Energy
Todd Kobayashi, 816-556-2904
Tina Lee, 212-506-5461