Despite the fact that World Energy had run successful auctions for the state, their university system – which accounts for approximately one-third of the state’s total usage – was initially reluctant to buy into the concept and chose not to participate, hiring its own consultant. In the first year, certain college campuses outside the system found that they had much lower pricing than the university system, which had gone its own way. After six months of substandard price performance as compared to the out-of-system colleges, the system went back to its previous supplier, dispensing with the consultant.

Two years later, the state and the system were looking to purchase 1.4 billion kilowatt hours of electricity. World Energy made a presentation detailing the benefits of participating together in a series of auction events. The presentation was a success, but the real proof was in the actual results of the auctions. Even the state’s consultant agreed that the World Energy-engineered price was better than what he could have gotten from a paper RFP and the director of procurement for the state called the results “outstanding by any measure.”

Result: Thirteen contracts were awarded quickly and efficiently, saving the taxpayers more than $31 million over a two-year period. The auction even included a 5% green component, which was awarded at no premium relative to the price paid for conventional power.