PowerOptions inks $500 million deal with Direct Energy Extends Affordable Power Solutions to Nonprofits with Innovative New Ability to Access Wholesale Market
Boston, April 14, 2010 – PowerOptions has signed an extended four year agreement with Direct Energy Business, LLC worth $500 million to supply electricity to its 500 members, continuing its mission of providing Massachusetts nonprofits, cities and towns with affordable energy solutions.
The new agreement with Direct Energy allows PowerOptions members access to purchasing directly from the wholesale market, signaling a sea change in the way power is purchased by area employers. The contract’s prices take advantage of today’s market, hovering near a record low, and provide businesses with dependability and predictability on energy bills well into the future.
“Once again, PowerOptions has been able to secure a favorable supply arrangement that meets the diverse needs of our members – large and small – including buying in bulk directly from the wholesale energy market, without the administrative and financial burdens associated with that kind of market participation,” said PowerOptions President and CEO Cynthia Arcate.
Dennis Villanueva, Utilities Manager for Partners HealthCare System, says direct participation in the wholesale market can be a very burdensome and expensive proposition for some customers. "This pricing option developed by PowerOptions is innovative and shows how PowerOptions continues to be on the cutting edge of aggregation in the retail competitive market as it has since its inception in 1997," Villanueva said.
“Our relationship with PowerOptions, and our ability to offer them and their customers such innovative energy solutions, is made possible by the competitive market here in Massachusetts,” says Mike Senff, Direct Energy Business Vice President, Sales and Marketing. “We operate in many markets throughout North America and know that as we develop new approaches to products and services, we have a receptive audience in the PowerOptions team to tailor these products to their unique customer base.”
There are over 500 members in PowerOptions, about 350 of which currently buy electricity through the PowerOptions program, including several large state facilities.
“With that kind of demand, we can design a program that provides favorable terms for all of our members – large and small – to meet the level of risk and sophistication they have with the competitive market” says Arcate.
“For our smaller members, they can opt for a fixed all-in price that they know is fair, market- based and predictable for budget purposes.”
About PowerOptions®
The award-winning PowerOptions® was formed by HEFA in 1996 and operates as a stand-alone nonprofit organization. It is among the largest electricity and natural gas purchasing consortiums in Massachusetts, with $220 million of annual energy commodity purchases and a combined demand of approximately 200 megawatts of electricity and 11 Bcf of natural gas usage. Any nonprofit or public institution in Massachusetts may become a member and participate in this collective purchasing effort. For more information, visit www.poweroptions.org.
About HEFA
HEFA is fully self-funded, receiving no tax-payer dollars. HEFA also provides funding for hospitals, cultural institutions, research centers and human service providers, as well as energy procurement services to all nonprofit, state and municipal facilities through PowerOptions®, its energy buying consortium.
Fulfilling its mission to save money for nonprofits, last year alone HEFA provided more than $3.2 billion in low-cost financing, saving nonprofits $600 million in debt service costs. Find out how at www.mhefa.org.
About Direct Energy
Direct Energy Business is one of North America’s largest commercial retail energy suppliers and a Direct Energy company. With more than 20 years of industry experience, Direct Energy Business is dedicated to helping customers make cost-effective choices for their electricity and natural gas requirements. Headquartered in Pittsburgh, PA, Direct Energy Business serves nearly 50,000 customers in 14 states, the District of Columbia and five Canadian provinces. Direct Energy is wholly owned by Centrica plc. (LSE:CNA,) one of the world’s leading integrated energy companies. To learn more, visit www.directenergybusiness.com.