Press Release

Schools, Government and Businesses Saving Millions

    HARRISBURG, Pa. – Across the state, school districts, municipalities and businesses are taking advantage of the Electric Choice Program by joining together in energy consortiums to purchase electricity on a collective basis. This is good news for Pennsylvania’s taxpayers and businesses. By cutting electricity costs, schools and governments save money and face less pressure to raise taxes. Lower electricity costs help businesses manage their bottom line and remain healthy.

    "The founding of energy-buying consortiums is one of the direct benefits of electric choice," said John M. Quain, chairman of the Pennsylvania Public Utility Commission. "By working together and leveraging their size, the groups are bringing greater savings to all of their members. And these are savings on top of the individual savings customers are already enjoying."

    In Northumberland County, the Milton School District expects to save approximately $57,000 this year, according to Business Manager Gary Shaffer. The district saved $22,000 in 1998’s pilot program. Likewise, the county’s Warrior Run School District shaved nearly $17,000 off its 1998 bills and expects higher savings this year when the Electric Choice Program is open to more customers.

    The school districts are two of approximately 313 non-profit entities making up the Pennsylvania Energy Consortium (PENCON). Founded in 1997 by the Central Susquehanna Intermediate Unit in Milton, Pennsylvania, PENCON coordinates the purchase of electricity for school districts, government municipalities, municipal authorities and public libraries.

    "We now have 242 of the state’s school districts, 42 municipalities and 29 other non-profit organizations in 50 counties," said Jeff Kimball, PENCON coordinator. "We expect to save our members more than $15 million in 1999."

    Other school districts and municipalities have quickly picked up on the opportunity to save money and have signed or are negotiating deals.

• The Central Pennsylvania Energy Utility Consortium is a joint effort by Cumberland, Dauphin and Perry counties with more than 300 participating members. Estimated savings for 1999 include, among others, Central Dauphin School District, $200,000; Cumberland Valley School District, $150,000; Cumberland County, $138,000; Dauphin County, $110,000; and Perry County, $21,000.
• The Delaware Valley Energy Consortium represents 74 public school districts, 43 private schools, 22 municipalities, eight vocational-technical schools and four intermediate units in Bucks, Chester, Delaware and Montgomery counties. Among its members, Central Bucks School District in Bucks County expects to save $247,000 in 1999; Downingtown Area School District in Chester County, $158,000; Upper Darby in Delaware County, $152,000; and North Penn School District in Montgomery County, $169,000.
• In Pittsburgh’s Allegheny County, the South Hills Area Council of Governments is working to bring the benefits of electric choice to its 122 participating communities.
• The Philadelphia School District recently negotiated a deal that is expected to save $3.6 million in 1999.
• In Hampton Township, Allegheny County, officials have helped residents take advantage of electric choice by extending the benefits of their power contract. Residents receive a reduced rate from the township’s energy supplier based on the number of customers who sign up. About 2,700 of the 6,000 residents have already signed up.

    "This is the wave of the future," said Chris Lochner, Hampton Township manager. "Customers want a simple way to participate in the Electric Choice Program and we’ve been able to help them. It’s been a huge success to be even close to half of our residential base in such a short time."

    Businesses are also enjoying the benefits of the Electric Choice Program, as trade associations leverage their membership powers to negotiate deals.

• The Harrisburg-based Pennsylvania Food Merchants Association and its sister group, the Pennsylvania Convenience Store Council, have 1,800 corporate members who operate about 5,500 stores and employ about 100,000 people. In addition to helping their members, the groups have included an offer for members’ employees to reduce their electric costs at home.
• In Erie, the Manufacturer's Association of Northwestern Pennsylvania has endorsed a company for its 6,500 members in 17 counties. Employees may also participate. More than

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