DALLAS, HOUSTON, and WORCESTER, Mass., April 15, 2014 (GLOBE NEWSWIRE) -- World Energy Solutions, Inc. (Nasdaq:XWES), a leading energy management services firm, today announced it has helped the GSA Energy Division successfully procure over 850 million kWh of electricity – including more than 125 million kWh from renewable sources – for 81 federal accounts in Texas. Twenty new Veterans Administration accounts joined the GSA Energy Division for this latest procurement, adding more than 90 million kWh to the buy. Six federal agencies participated in the auctions, including the Veterans Administration, US Bureau of Prisons, US Bureau of Engraving and Printing, and USDA.
Through a series of competitive online auctions run on the World Energy Exchange® in March 2014, GSA tested 18 different products and terms in a fair and transparent manner, receiving 274 bids from 11 qualified retail electricity suppliers over the course of two hours. Highlighting the competitiveness of the pricing events, 33% of the bids were received in the final minute of each auction.
The online event resulted in new contracts of up to 60-months that are expected to yield more than $5.1 million in annual savings, or 35%, compared to the participating agencies' prior agreements. All agencies will receive 15% green power from new generation sources located within the state of Texas. Delivery under the new terms is set to begin in April and June of 2014.
"This was an important procurement for GSA and World Energy in the State of Texas that proved to be a rousing victory for fair play and the superiority of the auction process," said Jonathan Harvey, Vice President, Government, at World Energy Solutions. "Not only did the competitive auctions deliver 8-figure savings in the face of a rising price environment, driving winning prices below the 5 cents per kWh threshold, but the auctions also outperformed the 'no-bid' approach offered by the incumbent supplier of the new auction participants.
"The reason government agencies go out to bid in the first place is to help establish the best and fairest price, and that's what the GSA auctions in Texas accomplished. We commend the GSA for running another outstanding event that drove savings and enhanced green power adoption among all of the participating agencies."
Dating back to 2001, World Energy has had a long and successful relationship with GSA. Over this period, GSA and its clients have won several awards for energy procurement practices. Through World Energy, GSA has procured more than 14 billion kWh of electricity supply and 170 million Dth of natural gas supply for federal facilities over the course of hundreds of procurement events.
As the federal government's workplace solutions provider, the U.S. General Services Administration works to foster an effective, sustainable and transparent government for the American people. GSA's expertise in government workplace solutions include:
- Effective management of government assets, including more than 9,600 government-owned or leased buildings and 215,000 vehicles in the federal fleet, and preservation of historic federal properties;
- Leveraging the government's buying power through responsible acquisition of products and services making up approximately 14 percent of the government's total procurement dollars;
- Providing innovative technology solutions to enhance government efficiency and increase citizen engagement; and
- Promoting responsible use of federal resources through development of government-wide policies ranging from federal travel to property and management practices.
For more information about GSA, please visit www.gsa.gov.
About World Energy Solutions, Inc.
World Energy Solutions, Inc. (Nasdaq:XWES) is an energy technology and services firm transforming energy procurement and energy efficiency for commercial, industrial, institutional, government and utility customers. The Company's award-winning, cloud-based auction platform, the World Energy Exchange®, its team of energy experts, and a network of more than 500 suppliers and 300 channel partners form an ecosystem that enables customers to minimize their total cost of energy. To date, World Energy has transacted over $45 billion in energy, demand response and environmental commodities, creating more than $3 billion in value for its customers. For more information, please visit www.worldenergy.com.
This press release contains forward-looking statements which involve risk and uncertainties. The words "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "forecasts," "projects," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events, including without limitation, its expectations of backlog and energy prices, and its expectations in growth in revenue, operating results, operating margins, and free cash flow. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections or expectations prove incorrect, actual results, performance or financial condition may vary materially and adversely from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to the following: the Company's revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for the Company's services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; the potential impact on the Company's historical and prospective financial results of a change in accounting policy may negatively impact its stock price; and other factors outside the Company's control that affect transaction volume in the electricity market. Additional risk factors are identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 and subsequent reports filed with the Securities and Exchange Commission. The forward-looking statements made in this press release are made as at the date hereof. Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the forward-looking statements expressed in this press release. Forward-looking statements are provided for the purpose of presenting information about management's current expectations relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, other than as required by securities laws.
Source:World Energy Solutions, Inc.