PowerOptions, Direct Energy Business sign $375 million electricity supply contract after robust, competitive bidding
Boston, MA, — PowerOptions and Direct Energy Business announced today that they have signed a $375 million, four-year electricity supply contract providing unmatched flexibility and predictability to more than 500 of the Commonwealth’s leading nonprofits and government institutions.
The contract ends a robust, months-long competitive bidding process. The procurement process had several serious bidders, more than past solicitations, which drove the price lower and netted better terms for members, according to PowerOptions President and CEO Cynthia A. Arcate.
“These are best in class terms and conditions which lead the industry and pale in comparison to what individual customers can negotiate on their own – that is a testament to our size and the buying power of our membership,” said Arcate. “This contract will provide our members with a unique ability to, with our help, chart their electricity supply future.”
“We are pleased to have again been selected from a strong pool of suppliers to extend our relationship with PowerOptions and their members for the next four years,” said Paul Dobson, head of operations and IT and acting president of Direct Energy Business. “This unique offering to the PowerOptions members is another example of Direct Energy Business as a total energy management provider.”
Unlike other aggregations, the PowerOptions program is an opt-in regime that provides customer-specific pricing and allows members to pick the length of contract that best meets their needs.
The competitive and open bidding process led to bids which were reviewed by members of PowerOptions’ staff, their Member Advisory Committee and industry experts. The staff, committee members and experts also reviewed the suppliers’ quoted pricing, proposed contract terms, financial qualifications, commercial competence and corporate and staff experience.