SOURCE: World Energy Solutions
NEW YORK, NY and WORCESTER, MA--(Marketwire - Jun 28, 2012) - World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it helped the U.S. General Services Administration, Region 2, successfully procure ~300 million kWh of electricity. Included in the procurement were several GSA facilities in New York, as well as other federal accounts, including the American Red Cross, Bureau of Prisons, United Nations, U.S. Coast Guard and U.S. Department of Veterans Affairs.
Through a series of competitive online auctions on the World Energy Exchange®, GSA tested multiple products and terms in a fair and transparent manner, amassing 127 bids from six suppliers in the process. The online events resulted in new contracts that are expected to yield more than $10.8 million in savings compared to the participating agencies' prior agreements. Delivery under the new terms will begin in May 2013.
Notably, GSA awarded two-year power contracts for its Manhattan and Upstate Service Centers, which are expected to yield annual savings of more than $3 million and $750,000 respectively. The Manhattan Service Center achieved this savings while purchasing 100% green energy. In addition, GSA's Upstate Service Center was able to secure 7.5% green power for some of its accounts that had not purchased green power previously.
Through the auctions, each participating agency secured green power while reducing energy costs, further burnishing GSA Region 2's credentials in environmental leadership. In 2011, GSA Region 2 won a coveted GSA Achievement Award for Real Property Innovation in sustainability. GSA has been notified it will receive a similar award again in 2012 for continuing to lead by example.
"It is very gratifying to help GSA Region 2 and other participating federal agencies in New York capitalize on historic lows in the market to save money and green their portfolios," said Jonathan Harvey, Vice President, Government, at World Energy Solutions. "Each time we do this -- and we've been working together now for 10+ years -- we see how well our procurement process works, the competitive dynamics it fosters and the strong supplier participation it elicits. GSA continues to lead the way in energy procurement, delivering great results to its constituents in a fair and transparent manner."
Added Phil Adams, CEO of World Energy Solutions: "Under the careful stewardship of Ken Shutika and Brian Magden, GSA Region 2 has set the gold standard for energy procurement. The proof lies in the numerous awards they have won -- and keep on winning -- and the millions of dollars in electricity-rate savings and green power they continue delivering to a growing number of federal agencies and facilities."
Today's deal marks the latest success for World Energy and GSA under the terms of a 5-year energy management contract the two executed in 2010. That contract provides supply-side energy procurement and management services to the GSA's Energy Division for its extensive network of federal government agencies and runs through September 30, 2015.
As the federal government's workplace solutions provider, the U.S. General Services Administration works to foster an effective, sustainable and transparent government for the American people. GSA's expertise in government workplace solutions include:
- Effective management of government assets, including more than 9,600 government-owned or leased buildings and 215,000 vehicles in the federal fleet, and preservation of historic federal properties;
- Leveraging the government's buying power through responsible acquisition of products and services making up approximately 14 percent of the government's total procurement dollars;
- Providing innovative technology solutions to enhance government efficiency and increase citizen engagement; and
- Promoting responsible use of federal resources through development of government-wide policies ranging from federal travel to property and management practices.
- For more information about GSA, please visit www.gsa.gov.
About World Energy Solutions, Inc.
World Energy Solutions, Inc. (NASDAQ: XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $30 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $1 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the ground-breaking Regional Greenhouse Gas Initiative's (RGGI) cap and trade program for CO2 emissions. For more information, please visit www.worldenergy.com.
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to the following: our revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; and there are factors outside our control that affect transaction volume in the electricity market. Additional risk factors are identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.