City will remain the largest green-powered city in the U.S.
STAMFORD, Conn.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/TraditionEnergy?src=hash” target=”_blank”gt;#TraditionEnergylt;/agt;–Tradition Energy, announced today that it has advised the City of
Dallas, Texas, on the largest green energy transaction since the
inception of Texas electricity deregulation. The new 10-year contract
will deliver more than 750 million kilowatt hours of electricity per
year to the City with savings of ~$80 million and reduce the energy rate
by over 26% compared to the expiring contract. As a result, the City of
Dallas will remain the most populous city in the nation with 100% green
power for its operations.
The historic renewable energy purchase also represents the first time a
local government of Dallas’ size has committed to a long-term strategy
of sourcing 100% of its load from off-site wind and solar farms,
including new sites not yet developed, in an attempt to eliminate any
electricity purchased from the grid. Initially, the contract supports
and draws power from the Foard City Wind Farm in West Texas. Through
Tradition’s negotiation, the winning energy supplier has agreed to work
with the City on sourcing the City’s volume from new renewable assets
that may be developed in North Texas, at no additional charge.
Tradition Energy’s Dallas advisory team conducted a rigorous procurement
process among 12 of the top energy providers. The outcome of several
months of contract negotiation resulted in numerous benefits for the
City, including:
- 26% budget reduction over the current agreement;
-
$3.66 million overall projected savings in the current
fiscal year; - $7.85 million overall projected savings annually;
-
$1.5 million over the term for energy-related projects and
initiatives and an additional $300,000 in community program support; -
maintains the City’s environmental leadership profile of using 100%
green energy; -
allows the City to pursue the development of new renewable
energy generation of their own; - provides budget certainty for the next decade.
“This is a great deal for Dallas,” said Errick Thompson, Director of
Building Services for the City. “With significant tax revenue reductions
looming, it is very important to find opportunities to reduce expenses.
Our open and competitive process delivered 10 years of budget certainty
and 100% renewable energy at a very market-competitive cost.”
“We are thrilled with this new renewable agreement our Dallas and
Stamford teams negotiated on behalf of the City of Dallas,” said Alan
Kurzer, CEO, Tradition Energy. “Not only have we helped the City achieve
their sustainability goals and dramatically reduce costs, but this new
contract will also provide budget certainty in the highly volatile ERCOT
market for many years,” added Michael Ayala, Executive Director,
Tradition Energy.
To read the City of Dallas’ announcement click here.
About Tradition Energy
Tradition Energy is the nation’s largest and most experienced
independent energy risk management and procurement advisor, serving more
than 1,300 commercial, industrial and governmental clients ranging from
Fortune 500 global companies to medium-sized businesses to local
municipalities. Tradition Energy is part of the Tradition Group, a
leading global institutional broker of financial and commodity products.
Tradition employs over 2,300 people in 29 countries around the world and
is publicly listed on the Swiss stock exchange (CFT). www.TraditionEnergy.com
Contacts
G. Scott Merrell, Senior Director, Marketing, 713-609-9922, [email protected]
