Dallas to save up to $21 million on new electricity supply contract

Midland, Texas, August 9, 2010 — Priority Power Management engineered a new electricity supply sourcing strategy for the city of Dallas that will result in estimated savings of up to $21 million over the next three years.

The city of Dallas engaged Priority Power Management in December 2009 to evaluate their electricity supply requirements and develop a strategy to optimize the way the city of Dallas sources their electricity supply from retail electricity suppliers.

Over the past seven months, Priority Power Management performed detailed electricity load analysis, assessed various product structures and risk analysis, developed a formal request for proposal package, evaluated bidder responses and assisted the city of Dallas with contract negotiations. The end result was a new three-year electricity supply contract that delivers savings to the city of Dallas.

The contract incorporated purchasing energy blocks that were customized to fit the city of Dallas’ load shape during various times of day throughout the year. It also mitigated any potential price risk to the city of Dallas from changes associated with the Texas electricity market moving from a zonal to a nodal market structure later this year.

“The new electricity supply contract is a tremendous win for the city of Dallas,” said Carolyn McKnight-Bray, director of city of Dallas’ Equipment and Building Services Department. “Priority Power Management’s experience and market knowledge was invaluable to the city of Dallas as we sought new ways to lower our electricity costs, create budget certainty and minimize our risk.”

Additionally, the contract included maintaining the city of Dallas’ commitment to purchasing 40 percent of their total energy requirements as renewable energy from Texas wind power farms, which came at significant savings to their previous agreement.

“The engagement with the city of Dallas was a major undertaking,” said John J. Bick, Managing Principal of Priority Power Management. “We were challenged with meeting several objectives in a fluid and ever-changing market. By working closely with the city staff, we were able to meet those objectives and exceed the goals of creating sustainable savings for the city of Dallas.”

 

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