City uses energy auction to save money
- By John Moore
- Feb 21, 2007
The city of Worcester, Mass., expects to save more than $870,000 on electricity it acquired through an online energy auction.
The city tapped World Energy Solutions’ online auction platform to buy electricity for more than 400 accounts, including all city buildings, public schools, streetlights and the convention center. World Energy conducts reverse auctions in which multiple sellers submit bids to supply a commodity specified by the buyer.
Worcester’s projected savings is in comparison to published utility rates. The city, the third largest in New England, had been purchasing power through a state consortium since 1998.
World Energy, an energy brokerage company based in Worcester, has several public-sector customers, including Maryland’s Department of General Services. In December 2006, the company cited new government procurements as a factor behind its 35 percent revenue hike for the quarter that ended Sept. 30, 2006.