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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.

The Avalon Advantage – Visit our website at www.avalonenergy.us, call us at 888-484- 8096, or email us at jmcdonnell@avalonenergy.us.

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Copyright 2013 by Avalon Energy® Services LLC

 

 

 

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Avalon Energy Services Completes New Energy Supply Contracts on behalf of Donohoe Real Estate Services

BETHESDA, Md., May 14, 2013 – Avalon Energy Services, the Mid-Atlantic’s leading energy consulting firm, announced today that they successfully completed an electricity procurement for 19 commercial real estate properties managed by Donohoe Real Estate Services. The properties are located in Maryland and the District of Columbia.  Under the new contracts, the properties will save more than $1.5 million per year on electricity supply costs.

“We are pleased to assist the premier firm of Donohoe Real Estate Services in obtaining such great savings,” said Jim McDonnell, Chief Operating Officer of Avalon Energy.

Tim Gallagher, President of Donohoe Real Estate Services, noted “At Donohoe, we have a more than century long tradition of creating value for our tenants and our property owners.  Working with Avalon Energy has allowed us to further build upon this tradition.”

Avalon Energy Services, LLC (Avalon Energy) provides a range of energy consulting services to commercial, industrial, institutional, and government customers.  Services include consulting related to energy procurement, energy audits, demand side management, and the implementation of distributed generation and combined heat and power (CHP) applications.  Avalon Energy’s website is www.avalonenergy.us.

Founded in 1884, The Donohoe Companies is the oldest full-service real estate organization in the Washington, DC region and also one of the largest — ranked in the top 50 private companies in the metropolitan area.

Donohoe has invested billions of dollars in Washington’s premier office, hotel, retail, industrial, and residential projects.  In addition, Donohoe provides a full range of building management, brokerage, and maintenance services to major institutions, corporations, and associations.

Today, guided by a fourth generation of the founding family, Donohoe remains committed to the basic values of excellence, integrity, and customer satisfaction. The philosophy and tradition that has brought Donohoe over a century of success continues to be the foundation of their business approach — hard work, fair play, and the willingness to take reasonable risks with prudent provision for the future.   For more information, please visit Donohoe’s website at www.donohoe.com.

Contact:

Jim McDonnell                                                Kevin Furnary

Chief Operating Officer                                 Senior Consultant

Avalon Energy Services, LLC                    Avalon Energy Services, LLC

888-484-8096, ext 202                               703-868-5677

jmcdonnell@avalonenergy.us                   kfurnary@avalonenergy.us

The Avalon Advantage – Visit our website at www.avalonenergy.us

Copyright 2012 by Avalon Energy® Services LLC