IN THE NEWS

Energy chief gauges cost control, competition in R.I.
Providence Business News, 02/7/05

NATURAL GAS & ELECTRICITY BULK-BUYING POOLS

TEC-RI has led Rhode Island in aggregating both natural gas and electricity users into bulk-buying pools.

Gas – Prior contracts realized savings of about 15-20% for about 25 of TEC-RI large natural gas users. The feasibility of initiating another gas pool is currently being considered.

Electricity – The initial effort to pool TEC-RI members benefited only about 15 members with high load factors. The impact of high Last Resort Service pricing when contracts expired has created a reluctance to leave SOS.

TEC-RI has assisted members in obtaining contracts that are below the Standard Offer Price. Generally it has been our large customers with high load factors or considerable off-peak usage who have benefited from competition.

Currently, rising oil and gas prices have necessitated a fresh look at procurement based on risk management and quick reaction to take advantage of a very volatile market in electricity and natural gas.

Developments in the regional market are leading to more scrutiny of transmission costs and rates.