ESMEC Energy Trust saves millions in costs
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.