For Immediate Release
November 13, 2008
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Says Innovative Energy Buying Group Initiative Designed to Deliver Stability Around Unpredictable Energy Market for Small Business Sector
Mayor Thomas M. Menino today joined small businesses and energy broker and utility management firm Taylor Consulting and Contracting in announcing the City's new Boston Buying Power initiative, an innovative energy-buying group designed to allow small businesses to purchase energy as a large group at a long-term fixed price through access to the deregulated energy market.
|At Model Hardware in Allston Village, Mayor Thomas M. Menino announced the City's new Boston Buying Power initiative, an innovative energy-buying group designed to allow small businesses to purchase energy as a large group at a long-term fixed price through access to the deregulated energy market.|
"Boston is committed to encouraging and supporting strong business communities. One of the ways we can do this is by advocating for small businesses and providing resources during difficult economic times," Mayor Menino explained. "Boston Buying Power is designed to give our hard-working small business sector the peace of mind that comes from long-term price certainty and budget stability, including access to energy efficiency programs."
Mayor Menino first announced the initiative last summer at a small business symposium and resource fair held at the Reggie Lewis Center in response to an increasingly volatile energy market. In August, a formal Request for Responses (RFR) was issued by the City's Department of Neighborhood Development (DND), which called for qualified energy brokers or consultants to create an energy-buying group to work directly with businesses to monitor the energy market and procure energy supply. In late September, Taylor Consulting and Contracting, a national utility management firm based in Pennsylvania, was selected to serve as the City's small business energy broker and consultant.
Many of Boston's small businesses utilize major utilities such as NSTAR or National Grid for their energy supply, and pay a pre-determined cost for access to the market, as well as the cost a company charges to bring the service to the customer's door.
Boston Buying Power participants will still pay their supplier for the delivery but will pay less for the energy itself because the partnership will access the energy market directly through experienced wholesale market negotiators. A management fee for organizing and maintaining the buying pool will be paid directly to Boston Buying Power by the selected supplier, and this fee will be built into a business's monthly energy price.
In addition to the procurement of energy, Boston Buying Power will also allow businesses to connect to programs and services that will help with the process of reducing and managing their consumption of gas and electric, creating and increasing energy efficiency within the Boston business sector.
"Boston Buying Power will combine the purchasing power of hundreds – possibly thousands – of commercial and industrial costumers across the Boston area, in order to give customers incredible benefits ranging from low pricing, to long-term rate stability, to the most advanced system of energy and utility management tools and services," explained Scott Stiner, Chief Operating Officer for Taylor. "Within twelve months, we think Boston Buying Power could be the single largest purchaser of energy in Massachusetts."
Today's announcement, made at Model Hardware, a participating Allston Village business, came just a day after the Boston Redevelopment Authority (BRA) released the results of a survey that found that the majority of the City's small businesses are struggling to cope with rising energy costs and are interested in taking steps to reduce their environmental impacts.