BALTIMORE, MD – The Maryland Department of General Services (DGS) and the Maryland University System today announced that the USM / DGS Energy Committee has raised more than $ 13 million to the state in ‘energy savings since 2014, of which more than $ 1.5 million are expected to be achieved in fiscal year 2022..
“This is only a part of the total savings expected in the years to come from Maryland’s unique market-based buying approach,” said DGS Secretary Ellington E. Churchill, Jr. “The DGS continues to serve the citizens of Maryland by identifying and developing more energy efficient plans, projects and procedures to reduce energy costs and expenses.
In 2006, the DGS and USM took the initiative to form an energy committee whose goal was to develop energy purchasing strategies for all state government operations by taking advantage of prices discounts available in a deregulated market. As part of the Energy Committee’s innovative electricity purchase strategy, the State participates in an auction revenue rights (ARR) process.
“USM is proud to be part of this important partnership and looks forward to working with DGS to identify additional opportunities to increase energy savings,” said USM Chancellor Jay Perman. “Addressing energy efficiency to reduce costs for the state is not only fiscally responsible, but environmentally friendly. “
Since 2009, the Energy Committee has authorized wholesale electricity purchases on the PJM wholesale electricity market for major government accounts, including the Annapolis Capitol complex, penitentiaries, prison sites, health care and college campuses. In this arrangement, the state covers part of the future load at a fixed price, then pays hourly market rates for the remaining needs. The state continues to service its small accounts through conventional fixed-price retail contracts.
All wholesale electricity buyers are eligible for ARRs, which entitles them to a share of the revenue generated from auctions each spring, where the private sectors bid for financial rights over various transmission paths. Therefore, ARR revenues are only determined by market activity. Retail customers are not eligible to participate directly in ARRs.
Over the years, for major government accounts, the Energy Committee has consistently demonstrated the interest, through lower unit prices, of buying on the wholesale market, compared to fixed-price contracts. . Part of this benefit is achieved through the committee’s annual participation in the ARR process.
About the DGS: The Department of General Services is responsible for essential services and programs administered on behalf of the State, including the procurement of goods and services; design, build, lease, manage and maintain facilities; lead energy conservation efforts; administer the state capital grant program; and providing essential services such as fuel management, disposal of surplus assets and records management. The Maryland Capitol Police General Service Department provides security and safety for state buildings.