NEW YORK, September 27, 2013–FS Energy, the energy management and advisory subsidiary of FirstService Corporation, has announced that the bidding process for its fall 2013 Energy Aggregation Purchasing Program is completed. The program leverages the purchasing power of the FirstService Residential property portfolio in New York City to reduce natural gas and electricity costs. Unlike most utility purchasing programs, this is a true aggregation product without requirements to lock in or fix prices.
For the fall 2013 program, FS Energy aggregated the consumption of hundreds of residential properties comprising 122,400,000 kWh in electric load and over 912,100 Dths in natural gas load. Based on the program’s past performance, participating buildings can potentially save up to 15% on electricity and up to 9% on natural gas costs.
FS Energy again included a multi-tiered bidding process for natural gas by separating the purchase on two levels: by service area (Con Edison vs. National Grid) and by service type (firm vs. interruptible). Because interruptible natural gas customers can operate their mechanical equipment utilizing an alternative fuel source, rates are cheaper than firm service. As a result, FS Energy awarded the natural gas contract to three separate suppliers in order to maximize the total savings to each property.
Properties that participate in the Energy Aggregation Purchasing Program remain customers of Con Edison or National Grid for the delivery portion of the commodity. Since these utilities do not guarantee the best rates possible, customers are encouraged to research and compare prices of energy service companies (ESCOs) to get the best rates. The FS Energy program provides each customer with an annual Energy Tracker Report that demonstrates savings on an “apples to apples” basis.
Significant Results To Date
This marks FS Energy’s fifth Energy Aggregation Purchasing Program. Since the program launched in fall 2011 participating properties have saved more than $6.3 million.
“We are thrilled that this no-cost solution continues to put money directly in the pockets of our clients,” says David Kuperberg, President, FirstService Residential New York. “It is especially gratifying that we are able to secure the most favorable rates available as a result of our portfolio size.”
Through a complex, multi-tiered Request for Proposal process, FS Energy’s specialists negotiate with numerous suppliers on behalf of a group of independently owned and operated properties, all of which are managed by FirstService Residential. Several rounds of bidding ensue until one or more vendors is selected. FS Energy bases its final decision on the most cost effective pricing for each individual property as well as the level of customer service provided by the vendor.