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June 18, 2007
WORCESTER, MA, June 18, 2007 - World Energy Solutions, Inc. (TSX: XWE), the operator of leading online exchanges for energy and energy-related products, today announced that Dallas/Fort Worth International Airport (DFW) has become the latest public agency, and one of the first in Texas, to purchase natural gas supply via the World Energy Exchange online auction platform.
In an auction held on May 22, 2007 DFW received pricing for 389,900 million BTUs of natural gas for use in heating the 6.9 million square feet of passenger terminals and hotels - about 15 percent of its annual energy requirements. Immediately following completion of the online reverse auction, DFW awarded a 12-month supply contract valued at $3.38 million to NGTS, LP of Dallas. Natural gas supply under the contract will begin flowing October 1, 2007.
Historically, DFW purchased energy supply through a paper-based request for proposal (RFP) and sealed bid method, according to Rusty Hodapp, DFW's vice president of energy and transportation management.
Hodapp said, "Our traditional procurement method only afforded the prospective supplier one opportunity to provide a competitive price, and they were blind to the other offers we were receiving. The online reverse auction provided the suppliers a two and a half hour window of opportunity to evaluate their position in the market and submit pricing offers, and at the same time and in real time, they could observe their competitors' offers as they were being made. We feel the transparency of the online reverse auction format is its most valuable feature."
"The online auction exceeded the airport's expectations and will net a savings of approximately $70,000 when compared to our current contract. We are now evaluating the use of online reverse auctions for future energy purchases," said Hodapp.
Phil Adams, World Energy COO, said, "World Energy Exchange's online reverse auction tool, coupled with our market intelligence and ability to deliver real time price transparency through sophisticated RFP structuring, streamlines the supply procurement process. At the same time, it creates real cost savings by inducing competition among suppliers that drives prices down to real market levels for organizations like DFW.
"We are excited by the trust and confidence placed in us by one of the busiest airports in North America, and are pleased to have once again delivered a satisfactory result for a high profile customer and one of our over 250 suppliers," said Adams.
About World Energy Solutions, Inc.
World Energy operates leading online exchanges for energy and energy-related products. Our proven approach provides market intelligence, promotes liquidity, and creates price transparency for all market participants, enabling our customers to transact with confidence and to seek the best possible price. To date, the company has brokered over 32 billion kwh of electricity, 500 million kwh of green power and Renewable Energy Certificates (RECs) and one trillion cubic feet of natural gas. For more information, please visit www.worldenergy.com.
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward looking statements. Such risks and uncertainties include, but are not limited to: our revenue is dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; we depend on a small number of key energy consumers, suppliers and channel partners; there are factors outside our control that affect transaction volume in the electricity market; and there are other factors identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
SOURCE: World Energy Solutions, Inc.
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