DALLAS--(BUSINESS WIRE)--Using a new, unprecedented strategy, River Oaks Energy led and negotiated efforts for Dallas/Fort Worth (DFW) International Airport, the third busiest airport in the world, to secure new supply contracts for electricity. The new contracts go into effect March 2015 and will provide DFW Airport with 950 million kilowatt hours (Kwh) of electricity over the two-year term servicing about 275 meters; 30 percent of the electricity will come from renewable energy sources. The total contract value is more than $60 million.
Key to securing the favorable contracts was the unique customer-focused procurement strategy employed by Dallas-based River Oaks Energy. In the weeks leading up to the online reverse auction event, the team for River Oaks Energy and DFW International Airport worked closely together to customize a request-for-proposal (RFP) that not only combined the dominant and diverse purchasing power of this aviation industry leader, but also presented a fair and transparent online bidding environment for electricity suppliers. Additionally, they leveraged River Oaks Energy’s extensive expertise in and knowledge of the Electric Reliability Council of Texas (ERCOT), which manages the flow of electric power to 24 million Texas customers.
The industry’s top electricity suppliers competed in an online reverse auction on Nov. 13 using the Energy Market Exchange’s (EMEX) online reverse auction platform. At the end of auction, DFW International Airport secured and locked in a fixed, budget-certain electric rate until 2017.
“The terms for these contracts were 100 percent customer-driven whereby suppliers were required to participate based on their willingness to provide electric power centered on the customer’s specific needs. As energy experts and consultants, it’s our job to encourage electricity suppliers to change their paradigm to compete in this process, even if it is uncomfortable,” said Duane Lock, president of River Oaks Energy.
“By focusing up front on the real needs and demands of the customer and using a ‘live’ online reserve auction event to bid down prices, any large commercial or government entity can secure unique and customized contracts with suppliers of electricity, natural gas and other products and services,” Lock said.
About River Oaks Energy
Since 2003, River Oaks Energy has empowered commercial and industrial government organizations by providing effective and efficient energy management solutions throughout Texas, as well as in Connecticut, Illinois, Ohio, Pennsylvania, New York, New Jersey, Maryland and Washington D.C. For more information, visit www.riveroaksenergy.com.