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In The News – Avalon Energy Services

Avalon Energy Services recently completed an electricity procurement project for KBS Capital Advisors’ One Washingtonian Center property in Gaithersburg, MD.  Marc Deluca, Regional President of KBS, noted that “Electricity markets have exhibited extreme volatility.  The folks at Avalon Energy Services have deep expertise and an unsurpassed understanding of the energy markets and how they work.  With their advice and counsel, we were able to successfully navigate our way to a very positive outcome. “

Click here for the full story.

Avalon Energy Services also recently became licensed by the Pennsylvania Public Utility Commission to assist commercial, industrial and governmental natural gas customers in all of the natural gas distribution company service territories in the Commonwealth of Pennsylvania.  These are:

  • Columbia Gas of Pennsylvania
  • National Fuel Gas Distribution Corporation
  • PECO Energy Company
  • Peoples TWP LLC
  • Peoples Natural Gas Company, LLC
  • Peoples Natural Gas, LLC – Equitable Division
  • Philadelphia Gas Works
  • UGI Utilities, Inc.
  • UGI-Central Penn Gas
  • UGI-Penn Natural Gas
  • Valley Energy, Inc.

Avalon Energy Services is now licensed for electricity and natural gas in Maryland, Pennsylvania, New Jersey and the District of Columbia.

Copyright 2014 by Avalon Energy® Services LLC

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40% Reduction and Volatility Avoided

Our recent press release was picked up by numerous news outlets.  Click here to see how it was reported by the Wall Street Journal’s Market Watch.

In summary, Avalon Energy Services, LLC and our project partner, Ameresco, successfully completed a second natural gas procurement process for the District of Columbia Department of General Services (DC DGS). Under its initial supply contract, DC DGS experienced an estimated 40 percent reduction in the price it pays for natural gas supply.  This second round allowed the District of Columbia to avoid the extreme volatility in natural gas prices that occurred during this winter’s heating season.

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Real Energy Cost Savings

Below are the results from a sampling of reverse auctions conducted for Avalon Energy Services’ customers, including customers of varying size, over the past few months.  The first graph shows the customer’s annual energy costs before competitive bidding (blue line) and after contracts were executed on accepted bids (red line).  Pre-auction annual energy costs ranged from $0.7 million to $9.6 million, while post-auction costs ranged from $0.5 million to $5.6 million.

This translates into savings from about $0.2 million to about $4.0 million per year, as shown on the graph below:

Annual savings on a percentage basis are presented in this third graph and range from 27% to more than 40%.

Of course, past performance is not necessarily an indicator of future results, but in our experience, a well-executed and carefully managed reverse auction will achieve the most advantageous results for a customer.  The key is to use a skilled energy consultant who can effectively analyze your needs, customize a solution, and successfully use competition among suppliers to bring about the optimal energy procurement outcome.

Evelyn Teel contributed to this article.

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Copyright 2013 by Avalon Energy® Services LLC