BALTIMORE (August 10, 2007) – Between June 2006 and June 30, 2007, the innovative strategy of purchasing electricity directly from the regional grid and multiple wholesale suppliers resulted in savings of more than $30 million for local governments and participating agencies, compared with BGE’s standard offer service rates.

The $70.6 million spent on electricity purchases saved the region’s taxpayers approximately $12.1 million when compared with the retail cost of electricity. The total annualized cost was $.078 per kilowatt hour.

The Baltimore Regional Cooperative Purchasing Committee (BRCPC), a standing committee of the Baltimore Metropolitan Council, developed the wholesale portfolio approach to purchasing electricity, eliminating retail middleman costs, in conjunction with its independent energy advisor, South River Consulting. Pepco Energy Services, the portfolio licensed service provider, has also been instrumental in the strategy’s operational and performance success.

The portfolio includes 3,000 BGE commercial electric accounts. Participants include the Baltimore City and Anne Arundel, Baltimore, Carroll, Harford and Howard county governments; the Baltimore County Public Libraries and Revenue Authority; Baltimore City, Baltimore County and Harford County public schools; the cities of Aberdeen, Annapolis and Bowie; and the Baltimore Museum of Art and Walters Art Gallery.

Other local government organizations have since adopted the wholesale portfolio approach. The portfolio approach used by BRCPC for purchasing energy is currently one of the options being considered by the Maryland Public Service Commission, the Maryland Energy Administration and the Governor’s Office for Maryland’s electric utilities as a means of reducing energy costs for residential customers.

"It’s always good to find ways to save taxpayers’ money," said Harford County Executive David Craig, the BMC Chair. "The money local governments can save on electricity means more money to provide services that directly benefit our residents."