COSTARS members save big on utility costs thanks to electricity shopping event
06/12/2018
State College, Pa. — The Penn State Facilities Engineering Institute (PSFEI) today announced the results of its COSTARS electricity shopping event.
A total of 324 accounts were solicited and awarded using the PSFEI-created Energy Risk Management Application (ERMA). By comparing published utility company rates (known as the price to compare) to bids from prospective suppliers, PSFEI enabled COSTARS to lock in lower rates for 48 members, for a total of more than $450,000 in projected savings.
“This service provides COSTARS clients with a transparent, competitive and user-friendly procurement process, administered by a group of energy and procurement professionals who provide direction and answer questions,” said Scott Harford, PSFEI energy management consultant. “Having knowledgeable professionals preparing accounts for inclusion in the procurement process helps ensure each and every client gets the best possible price for their electricity.”
By participating in the electricity shopping events, COSTARS members have accrued annual cost reductions of more than $1.45 million over the past three years, according to Kevin Dean, PSFEI energy management consultant.
“One of the biggest challenges that comes with shopping for energy is understanding the terms and conditions of the suppliers’ contracts,” said Dean. “The COSTARS program completely eliminates this hurdle by utilizing the Commonwealth’s RFQ which is written with the COSTARS members’ best interests in mind.”
PSFEI uses its proprietary ERMA software to assist the Pennsylvania Department of General Services (PADGS) with soliciting, comparing and awarding electricity contracts in real-time. This allows PSFEI and PADGS personnel to receive bids, analyze the bids and award the most cost-effective contract all within a few hours. The efficiency of the process empowers PSFEI clients to take advantage of buying opportunities in the energy market, providing an opportunity to save money.
For more information about COSTARS Electricity Procurement Services, visit http://www.psfei.psu.edu/Services/Energy/COSTARS.aspx.
The Penn State Facilities Engineering Institute provides facilities engineering services, education programs and energy management to Pennsylvania state agencies, the federal government and nonprofit organizations. The organization aims to advance its customers’ facilities engineering objectives through applied research, education and innovation.
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