SOURCE: World Energy Solutions

World Energy Solutions

April 06, 2011 08:01 ET

Town of Berlin Turns On Power Savings With World Energy Solutions

Online Auction Process Attracts Bidders, Spurs Competitive Pricing

BERLIN, MD and WORCESTER, MA--(Marketwire - April 6, 2011) - World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has helped the Town of Berlin, Md. secure a new one-year purchase power agreement with American Electric Power Service Corporation (AEP) through a competitive Internet-based bidding process on the World Energy Exchange®. The new power contract is anticipated to save the town's residential electric customers approximately 12 percent on average below their current monthly bills starting this summer.

The savings will be reflected in each customer's bills through the Power Cost Adjustment (PCA) portion of their monthly electric bills. The full impact of the reduced power supply cost will be phased into rates through the PCA over three months beginning with the billing customers receive in August.

"PCA charges represent just over one-third of the cost per kilowatt hour for residential customers, so the savings provided through the new contract will have a measurable impact for Berlin electric customers," said Mayor Gee Williams. 

Three qualified firms competed on March 29, 2011 in the live Internet auction. All bids were made in real time and were simultaneously visible to all of the competing firms and to Berlin officials and the town's electric engineering consultants.

In 2009, using a traditional request for proposals (RFP) format, the Town had only one qualified bid for a power supply agreement. The primary goal of Berlin officials at that time was to stabilize electric rates that had risen dramatically in the previous year in the open marketplace where the town had been purchasing power.

"Our goal this year is to be more ambitious by using World Energy's Internet auction
approach to produce the lowest possible purchase power contract by attracting multiple qualified bidders to compete with each other in real time," said Mayor Williams. "I believe the town has taken a positive step in an unpredictable energy market by contracting a power supply agreement that will reduce the cost of purchased power over the next year compared to what we have been paying."

The Internet auction was conducted by World Energy Solutions and APPI. Berlin officials were guided and advised through the process by two electrical engineering consulting firms, Booth and Associates, Inc. and Customized Energy Solutions.

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 $20 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 Green 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.

Contact Information

  • For additional information, contact:

    Dan Mees
    World Energy Solutions, Inc.
    (508) 459-8156
    Email Contact

    Erika Moran
    The Investor Relations Group
    (212) 825-3210
    Email Contact

    Mayor Gee Williams
    Town of Berlin
    410-641-3858