Starting January 1998, New Energy Ventures will provide electricity to the first coalition of water agencies to have joined together to purchase and sell the service.
The Association of California Water Agencies Utility Service Agency has agreed to purchase electricity from New Energy for one year. It will allow members to save a minimum of $5 million annually on electric costs, depending on how many members sign up. The deal includes a price protection guarantee, committing New Energy Ventures to match any better offer from other electric suppliers, or to release ACWA-USA members to take the better offer.
"Our members can choose either a guaranteed discount from utility retail rates or a very attractive share-the-savings arrangement," said ACWA-USA President Ed Horton. "Either approach will result in our members reducing their electricity bills next year, which is the whole purpose behind deregulating the electric industry in California."
California water utilities account for 5 percent of the states peak electric demand, and use about 7 percent of the total consumed in the state. The 16 members of ACWA-USA represent an electric load of about 250 megawatts and about 1 billion kilowatt-hours of usage.
ACWA-USA is a joint power agency formed by the Association of California Water Agencies.
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