HOUSTON--(BUSINESS WIRE)--Choice! Energy Services (Choice), a leading provider of customized energy procurement and management solutions, announced today it has been selected to represent the City of Houston’s power procurement process. Its unrivaled knowledge of the wholesale energy markets enabled Choice to secure optimal price and contract terms for the City’s energy needs resulting in savings exceeding $30 million per year. With a potential value of $500 million, the contract was awarded to Reliant Energy with options to purchase longer terms held by the City.
“The City of Houston sought a partner to provide strategic consulting and a proven ability to manage large and complex energy purchases,” said Kiki Dikmen, managing partner of Choice. “We are delighted to be awarded the contract following a highly competitive RFP and interview process that began in the summer of 2011. We are particularly proud of the partnership we developed with the City based on our proven transparent approach.”
The contract with Choice stipulates the company will provide unbiased consulting related to the selection of possible suppliers and ensure bidders’ credit ratings adhered to the City’s strict requirements. For the City, it was crucial that Choice be able to negotiate and structure contracts with suppliers to accommodate growth with no penalties, facilitate all bid rounds, accurately calculate taxes and mitigate overall risk. Along with a number of other innovative strategies, Choice, the City and Reliant collaborated to strip out its street light load and migrate it to Locational Marginal Pricing to take advantage of lower off-peak prices in the evenings. This has also become an easier tracked process through the introduction of the “Dashboard” available through Choice’s website that shows the LMP markets live to its users.
The City asked Choice to select a day when market conditions were favorable to execute the contract. On Feb. 26, 2012, Choice accomplished that goal upon seeing heat rates demonstrate relief and longer term natural gas prices showing continued downward movement—resulting in competitive long term power rates for the City.
There are a number of green power elements embedded in the contract as well as very flexible schedules to accommodate the City’s long-term growth. The City will also enjoy discounts as their accounts payable systems are equipped to facilitate payment much earlier than they are due, providing significant savings to Houston taxpayers.
About Choice! Energy Services
Headquartered in Houston with additional offices in New York and Louisville, Choice! Energy Services was founded in 2002 as a result of electricity deregulation in Texas. The company has since expanded into every deregulated electricity and gas markets in the country and offers services in several regulated states as well. With the goal of helping customers reduce energy costs, better manage budgets and lower overall risk, Choice! Energy Services is a leading provider of electricity and gas brokerage services in the United States. For more information, please visit: www.choiceenergyservices.com.