In pursuing its mission to realize cost savings for local government agencies, the Baltimore Regional Cooperative Purchasing Committee (BRCPC) awarded two contracts in 2004 for the purchase of electricity.

In May, the BRCPC awarded a 23-month, $67.3 million contract to Reliant Energy to supply electricity for 2,405 GL, or commercial, accounts for 23 local government entities. These accounts had been purchasing electricity at Price Freeze rates, which expired on June 30. Without a contract, these accounts would have reverted to the fluctuating Standard Offer Service (SOS) rate. The contract with Reliant Energy is expected to save more than $6 million over the term of the contract, compared with the SOS rate.

In November, the BRCPC awarded a 30-month, $61 million contract to Constellation NewEnergy to supply electricity to a pool of "P" type accounts. These accounts are currently covered by a cooperative contract with PEPCO, which expires on March 30. Without a new contract, these accounts would have had to purchase electricity at the SOS rate. The new contract is estimated to save approximately $4.8 million over the course of the contract, compared with the SOS rate.

The BRCPC also realized significant savings in 2004 on items such as copier paper and fuel oils through online reverse auctions, which allow vendors to bid against each other in real time.

Posted: 01/06/2005