Boston, February 1 — PowerOptions, the area’s leading energy buying consortium of nonprofit and government entities, today issued a Request for Proposals for retail electricity supply. Revenue under the contract could be more than $330 million over four years to the winning bidder.
The primary purpose of the RFP is for electricity supply with focus on predictability, dependability and cost savings. In addition, energy marketers are asked to bring forward visionary ideas to help PowerOptions’ 500 members better meet their comprehensive energy needs.
“In many ways the electricity market is just a commodity market with little differentiation, so we expect to see very similar prices from bidding suppliers,” said PowerOptions President and CEO Cynthia A. Arcate. “In today’s environment, our members need more than just a low price. We’re encouraging respondents to bring their most creative approaches and help us develop new products and services, which will help members capture greater value and mitigate risk in the energy market of the future.”
PowerOptions members purchase about $200 million annually in energy through programs for electricity and natural gas. The electricity program has nearly 200 MegaWatts of demand and one billion kilowatt-hours.
“With that kind of demand, we can design a program that provides favorable terms for all of our members – large and small, and we can push the market forward with creative and innovative ideas, much as we have done for the last 19 years,” added Arcate.
Specifically, the RFP calls for products and services which help reduce energy consumption and associated costs, including:
- Enhanced data gathering and analysis products which expand and improve members’ ability to collect and understand energy consumption and take action to reduce costs;
- Load management products which assist members in identifying and initiating cost-saving opportunities and adjust consumption patterns – particularly away from high-cost periods;
- Energy storage products that enable members to flexibly manage the timing of their usage to reduce costs
The innovative nature of the RFP was deliberate, Arcate said. “We know we have the opportunity to reach for something more on behalf of our members.”
PowerOptions members include some of the state’s largest hospitals, higher education institutions, municipalities, state agencies and smaller nonprofits.
“We are an attractive consortium for suppliers, who relish the opportunity to work with such a large base of important institutions and government entities,” she added.
RFP responses are due on March 9 at 2 p.m. The Request for Proposals is available by request by emailing ElectricRFP@PowerOptions.org.