News
PowerOptions Contracts with Hess Corporation to Supply Massachusetts Nonprofits and Public Institutions with Natural Gas
Boston, September 17, 2007 – In a deal that could total more than $300 million over the next three years, the Massachusetts Health and Educational Facilities Authority (HEFA) announced today that its PowerOptions program has signed an agreement with retail energy supplier Hess Corporation to offer natural gas contracts to nonprofit institutions, cities and towns and other public organizations that are members of HEFA's PowerOptions energy buying program. The potential value of the natural gas that will be sold under the program could exceed $100 million annually.
PowerOptions Executive V.P. Carter Wall says the contract terms are highly competitive in the Massachusetts market, giving nonprofits and government organizations much more control over their utility bills in a period of high market volatility. "For over ten years, PowerOptions has been in the business of giving our member organizations more certainty about their energy costs," Wall said.
PowerOptions member Dennis Villanueva, Energy Manager for Partners HealthCare System, agrees: "The PowerOptions program has brought significant benefits to Massachusetts' non-profits and public institutions, which in turn helps all of the people we serve."
Hess Corporation, which has its headquarters in Woodbridge, NJ, will offer PowerOptions members their choice of contract length and a variety of pricing options. "Hess was chosen after a highly competitive bid process," said Wall. "We were impressed by their competitive pricing, the strong financial position of the company, and their excellent customer service." Under the agreement, Hess may supply natural gas to over 500 nonprofit institutions and government organizations that make up the PowerOptions consortium. The agreement with Hess will offer supply to PowerOptions customers through October 2011.
The award-winning PowerOptions program is the largest electricity and natural gas purchasing consortium in Massachusetts. In 2006, PowerOptions members made up almost 9% of the entire competitive retail market for electricity in Massachusetts, with a combined demand of approximately 250 megawatts, and to date PowerOptions has saved its participants more than $250 million on utility bills compared to LDC basic service rates. Members range from cities and towns, hospitals and colleges, to small human service agencies and cultural institutions located throughout the Commonwealth. Any nonprofit or public institution may become a PowerOptions member and participate in this collective purchasing effort. For more information, call 617-737-8480 or visit www.poweroptions.org.
Hess Corporation is one of the largest multi-state providers of competitive retail energy services in the U.S. For more information, visit www.hessenergy.com
