Costco controls costs for Electricity by turning to World Energy

Auctions in New York City and Westchester reduce pricing 11 and 16%

September 22, 2003 - Costco applied its sharp eye for buying to electricity by partnering with on-line reverse auction leader World Energy Solutions. That collaboration paid off as Costco secured reduced commodity pricing for 7 warehouses in New York City and Westchester.

World Energy attracted 4 suppliers to bid on Costco’s facilities. The reverse auction caused these suppliers to bid 24 times, reducing pricing 11 and 16% and enabling Costco to lock in a fixed commodity price for a 12 month term.

“We are delighted to add Costco to our roster of Fortune 500 National accounts,” said Richard Domaleski, President of World Energy Solutions. “Their needs as an enterprise with locations across the country are a perfect fit for World Energy, as we play in all deregulated commodity markets. We are one of the only one-stop shopping sources for companies interested in a national solution.”

About Costco: Costco currently operates 412 warehouses, including 304 in the United States and Puerto Rico, 61 in Canada, 15 in the United Kingdom, five in Korea, three in Taiwan, three in Japan and 21 in Mexico. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com.