Energy partnership reduces electricity costs for Pennsylvania taxpayers

The city of Pittsburgh and the county of Allegheny, Pa., have executed a joint electricity purchase that will save taxpayers an estimated $1.4 million over the next two years, while doubling their renewable energy commitment.

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To leverage their combined purchasing power and reduce energy costs, the city and county initiated a joint contract with Co-exprise Inc., a technology and strategic sourcing company based in Wexford, Pa. Co-exprise provided an Internet-based platform to qualify energy suppliers and collect bids from these suppliers, as well as conducted a reverse auction that ultimately delivered best market price and terms for the electricity supply.

The energy purchase represents the first phase of bid events associated with the Western Pennsylvania Energy Aggregation Program. Participants not only included the City of Pittsburgh and Allegheny County, but also the Sports and Exhibition Authority, the Pittsburgh Zoo and the Pittsburgh Water and Sewer Authority.

This buying consortium awarded a two-year contract to Duquesne Light Energy to provide generation and transmission services for approximately 230 million kwh, which includes a renewable energy requirement of 10 percent. The figure is a 100 percent increase over the current requirement.

“The Western PA Energy Aggregation Program is a great example of the city and county jointly pursuing best-in-class purchasing practices that are enabled by 21st century technology to make the best use of taxpayer dollars,” said Pittsburgh Mayor Luke Ravenstahl.

Ravenstahl and County Executive Dan Onorato also have expanded the Energy Aggregation Program to include subsequent energy bid events and have invited other western Pennsylvania entities, such as universities, school systems, government authorities and businesses, to join this initiative.

“The results of this initiative illustrate what the city and county can achieve together by maximizing our purchasing power and delivering the lowest total energy costs for our constituents,” Onorato said.

Co-exprise Inc. designs and leverages technology to enhance the way organizations source everything from complex, direct materials to everyday commodities.

For more information about the firm’s capabilities, visit http://www.co-exprise.com/.

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