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January 17, 2007
World Energy Solutions (TSX: XWE) announces that the General Services Administration (GSA) Northeast Region has finalized competitive power supply contracts for several three- to five-year terms using the World Energy Exchange. Under the terms of these contracts, GSA is expected to purchase 1.4 billion kWh of electricity for federal facilities, of which 237 million kWh is expected to be from renewable energy sources.
Jon Harvey, World Energy vice president, said, “GSA has become highly sophisticated in its use of the World Energy Exchange to secure a mix of renewable and non-renewable energy supply. GSA is using the Exchange to assess supply variables such as contracting periods and the percentage of renewable energy in order to better manage its portfolio of supply contracts. We believe that the different contract terms and electricity sources provide a natural hedge, mitigating future price risks.” Harvey pointed out that GSA is expected to realize cost-avoidance savings of approximately $30 million, or 15 percent, over the life of the contracts.
The federal government has set a goal of having three percent of all energy used in federal facilities coming from renewable sources such as wind power through 2009, increasing to five percent for 2010 to 2012. With the most recent auctions conducted over the World Energy Exchange, GSA-owned and operated facilities in the Northeast will achieve 33 percent in renewable supply, much of which will come from windmills located in Pennsylvania. The Statue of Liberty is one of the federal facilities that will be served by this power supply.
World Energy has had a long and successful relationship with the GSA. The GSA's Energy Center of Excellence (ECOE) was given a 2002 U.S. Department of Energy Federal Energy Management Award for Innovative Technology for Small Groups following use of the World Energy Exchange for supply procurement in the state of New York. Since first using the World Energy Exchange in 2001, GSA has procured more than 7.2 billion kWh of electricity supply for federal facilities.
About World Energy Solutions, Inc.
World Energy is an energy brokerage company that has developed an online auction platform, the World Energy Exchange, through which energy consumers in the United States are able to purchase electricity and other energy resources from competing energy suppliers. While the company's core competency is brokering electricity, it has adapted its World Energy Exchange auction platform to accommodate the brokering of natural gas, green power and certain other energy-related products.
This press release contains forward-looking statements that are based on our current expectations, beliefs, assumptions, estimates, forecasts and projections about the industry and markets in which World Energy Solutions operates. The statements contained in this release are not guarantees of future performance, are inherently uncertain and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements, and such statements should not be relied upon as representing World Energy Solutions' expectations or beliefs as of any date subsequent to the date of this press release. We do not undertake any obligation to update forward-looking statements made by us. Important factors that may affect future operating results include: our revenue is dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is effected 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; factors outside our control affect transaction volume in the electricity market; and other factors identified in our Registration Statement on Form S-1 and subsequent reports filed with the Securities and Exchange Commission
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