ESMEC En­ergy Trust saves mil­lions in costs

Record Observer - - News -

CENTREVILLE — The Eastern Shore of Mary­land Ed­u­ca­tional Con­sor­tium En­ergy Trust achieved cost avoid­ance of an ad­di­tional of $1.9 mil­lion dol­lars com­pared to the Del­marva Power stan­dard of­fer ser­vice rates for the fis­cal year 2016. The cost avoid­ance was achieved through im­ple­men­ta­tion of an in­no­va­tive elec­tric pro­cure­ment pro­gram for its mem­bers.

The ESMEC En­ergy Trust elec­tric pro­cure­ment pro­gram was de­signed to achieve lower elec­tric sup­ply costs and more flex­i­ble elec­tric price risk man­age­ment. A cen­tral goal of the pro­gram is to re­duce price volatil­ity while meet­ing pub­lic pro­cure­ment re­quire­ments in a cost ef­fec­tive man­ner. This is achieved through a com­bi­na­tion of a cost-plus struc­ture and man­aged bid whole­sale pur­chases and uti­liz­ing sound com­mod­ity pur­chas­ing strate­gies of time di­ver­sity (time buys) and mar­ket re­spon­sive pur­chases (value buys). The elec­tric­ity pro­cure­ment is guided by es­tab­lished pro­cure­ment poli­cies and im­ple­mented by En­erNOC Inc., Bal­ti­more.

The ESMEC En­ergy Trust was founded by the nine Eastern Shore school sys­tems in 2001 in re­sponse to Mary­land’s elec­tric­ity dereg­u­la­tion. Since in­cep­tion, the En­ergy Trust has avoided an es­ti­mated $15.3 mil­lion dol­lars in elec­tric­ity costs, sav­ing tax re­sources for di­rect pro­grams and ser­vices. There are now 28 in­sti­tu­tional mem­bers of the Trust, in­clud­ing 10 school sys­tems, three com­mu­nity col­leges, eight county gov­ern­ments and seven towns, most of which are on the Eastern Shore.

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