NEW YORK, NY and WORCESTER, MA — (Marketwire) — 01/17/12 — World Energy Solutions, Inc. (NASDAQ: XWES), a leading energy management services firm, today announced it has helped GSA Region 2 successfully procure over 800 million kWh of electricity for more than 36 of its facilities and other federal accounts in New York State, including the Veterans Administration, American Red Cross, Bureau of Prisons and Department of the Interior.
Through a series of competitive online auctions on the World Energy Exchange®, GSA tested multiple products and terms in a fair and transparent manner, receiving over 270 bids in the process — 43% of which came in the last 30 seconds of the auctions. The online events resulted in new four-year contracts that are expected to yield more than $35 million in savings compared to the participating agencies– prior agreements, or a rate reduction in excess of 35 percent. Delivery under the new terms will begin in May and June of 2012.
“In all our years working together with GSA Region 2, we have never seen the auctions drive prices this low in New York, a powerful testament to the competitive dynamics of this procurement process and the strong supplier participation it elicits,” said Jonathan Harvey, Vice President, Government, at World Energy Solutions. “GSA has achieved a truly outstanding procurement result in a time of heightened budget constraints.”
Added Richard Domaleski, CEO of World Energy Solutions: “Under the leadership of Ken Shutika and Brian Magden, GSA Region 2 continues to demonstrate an unwavering commitment to energy procurement excellence, a dedication that has earned it numerous awards and which today is rewarding federal energy buyers, and the constituents they serve, with a staggering 8-figure electricity-rate savings.”
Today–s deal is comprised of both key renewals and additional new business for World Energy with GSA under the terms of the 5 year energy management contract the two executed in 2010. That contract provides supply-side energy procurement and management services to the GSA–s Energy Division for its extensive network of federal government agencies and runs through September 30, 2015.
Dating back to 2001, World Energy has had a long and successful relationship with GSA. Over this period, GSA and its clients have won several awards for energy procurement practices. Through World Energy, GSA has procured nearly 13 billion kWh of electricity supply and 120 million Dth of natural gas supply for Federal facilities over the course of hundreds of procurement events.
As the federal government–s workplace solutions provider, the U.S. General Services Administration works to foster an effective, sustainable and transparent government for the American people. GSA–s expertise in government workplace solutions include:
Effective management of government assets, including more than 9,600 government-owned or leased buildings and 215,000 vehicles in the federal fleet, and preservation of historic federal properties;
Leveraging the government–s buying power through responsible acquisition of products and services making up approximately 14 percent of the government–s total procurement dollars;
Providing innovative technology solutions to enhance government efficiency and increase citizen engagement; and
Promoting responsible use of federal resources through development of government-wide policies ranging from federal travel to property and management practices.
For more information about GSA, please visit .
World Energy Solutions, Inc. (NASDAQ: XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $20 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $1 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the ground-breaking Regional Greenhouse Gas Initiative–s (RGGI) cap and trade program for CO2 emissions. For more information, please visit .
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to the following: our revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; and there are factors outside our control that affect transaction volume in the electricity market. Additional risk factors are identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
For additional information, contact:
Dan Mees
World Energy Solutions, Inc.
(508) 459-8156
Erika Moran
The Investor Relations Group
(212) 825-3210