Solvay
Supply and Economic Assessment: Rate
Assessment, Supply
Assessment,
Request for Qualification and Request for Quotation
Solvay,
New York
The
electric department of the village of Solvay, New York, is not unlike
many municipal electric utilities. With just under 50 megawatts of annual
peak load, it is small compared to giant investor-owned utilities. Most
of the load comes from local residents and businesses. Solvay, however,
differs in two respects: it enjoys a low-cost, albeit limited, wholesale
power supply available to the municipal utilities served by the New York
Power Authority (NYPA) and has an above-average proportion of manufacturing
demand that is growing. With Solvay's projected increase in load, it was
evident that this village of 6,800 would exceed its allocation of low-cost
NYPA power, necessitating the procurement of additional, possibly more
expensive, electricity. With deregulation, a number of supply alternatives
were available, and the Berger Group assisted Solvay in determining the
most economical sources. Working with the village and local industry,
Berger assessed the existing and future demand and issued a Request for
Qualifications and Quotation for power purchase. Because Berger had encouraged
Solvay to be one of the pioneers in energy deregulation, this procedure
resulted in a very aggressive response from interested suppliers. The
Berger Team analyzed proposed capacity and pricing formulas against projected
loads and identified the best alternatives to meet local power needs.
Berger then prepared a comprehensive report on the findings, discussed
options with local officials, met with prospective suppliers and assisted
in structuring and negotiating power supply contract terms and conditions.
The final deal that was struck will result in savings of several million
dollars over the next 10 years and help support even further industrial
expansion in the village.
The
electric department of the village of Solvay, New York, is not unlike
many municipal electric utilities. With just under 50 megawatts of annual
peak load, it is small compared to giant investor-owned utilities. Most
of the load comes from local residents and businesses. Solvay, however,
differs in two respects: it enjoys a low-cost, albeit limited, wholesale
power supply available to the municipal utilities served by the New York
Power Authority (NYPA) and has an above-average proportion of manufacturing
demand that is growing. With Solvay's projected increase in load, it was
evident that this village of 6,800 would exceed its allocation of low-cost
NYPA power, necessitating the procurement of additional, possibly more
expensive, electricity. With deregulation, a number of supply alternatives
were available, and the Berger Group assisted Solvay in determining the
most economical sources. Working with the village and local industry,
Berger assessed the existing and future demand and issued a Request for
Qualifications and Quotation for power purchase. Because Berger had encouraged
Solvay to be one of the pioneers in energy deregulation, this procedure
resulted in a very aggressive response from interested suppliers. The
Berger Team analyzed proposed capacity and pricing formulas against projected
loads and identified the best alternatives to meet local power needs.
Berger then prepared a comprehensive report on the findings, discussed
options with local officials, met with prospective suppliers and assisted
in structuring and negotiating power supply contract terms and conditions.
The final deal that was struck will result in savings of several million
dollars over the next 10 years and help support even further industrial
expansion in the village.