With energy rate caps set to expire this year, SEPTA has taken a proactive approach to save money for customers and taxpayers, including a recent procurement that could result in a savings of more than $8 million through the end of 2012.
Mondre Energy, Inc. (MEI), a leading energy strategies and management firm based in Philadelphia, recently provided strategic advice, analysis, and final recommendations to SEPTA for its procurement of approximately 40 megawatts of electric power – an estimated $20 million annual expense – for a portion of the Authority’s propulsion power accounts. The electricity delivered to these accounts is used to power subway, trolley, and Regional Rail lines. The procurement included coordination with Amtrak, which helped in providing the background to the soliciting process with competing electric generation companies.
“The removal of PECO rate caps in January 2011 means that all energy users in the Philadelphia region now have the opportunity to shop for their electricity needs,” said Judith Mondre, president and founder of MEI. “For SEPTA, we were able to provide insights and advice that saved millions of dollars and helped to significantly lower the Authority’s electricity costs.”
“We look upon the ability to procure electricity on the open market as an opportunity to save money,” said Richard Burnfield, SEPTA’s Chief Financial Officer. “Working with the team at Mondre Energy provided us with confidence that we were addressing the procurement process strategically, asking the right questions, and making better decisions that will help hold down costs for our ridership.”
MEI and SEPTA are also working together to procure electricity for use in SEPTA offices, maintenance yards and other facilities. For more information on MEI, visit www.mondreenergy.com.