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Education is key to managing energy costs

From The Beacon, June 2005, Vol. XXXI, No. 6

Do your homework. That’s the advice DeAnne Auclair has for any city or town that decides to take control of its energy procurement.

Auclair didn’t know any more about electricity than the average homeowner until she became the energy liaison for Attleboro, a city of 43,000 in Bristol County. But today Mayor Kevin Dumas’s executive secretary can talk about price curves with the best of them.

Auclair says that taking energy matters into your own hands can be more cost-effective than hiring a consultant. The problem is that the cost of a consultant can eat up all of the savings you gain by buying power through the competitive market.

Auclair combines her own research with the offerings of the MMA’s MunEnergy program, which the city has worked with since the program was launched five years ago to reduce exposure to power price fluctuations.

“MunEnergy has been very effective in providing us with cost savings,” Auclair says. “Lights and power are a major expense in a municipality, especially street lights. We’ve reduced our average street light expenditure to $36,000 a month. I cringe at the thought of what it would cost if we weren’t on an energy program.”

She says the street light savings are probably in the range of $10,000 a month.

Attleboro, the birthplace of New England’s jewelry industry, just signed a new power agreement with MunEnergy, once again locking in for a three-year agreement.

“We’re in it for the long haul,” Auclair says. “The price of energy hardly ever goes down.”

She called MunEnergy, found a good rate, and circulated the agreement to the mayor and the city solicitor. Within three days, the city had locked in its energy costs through 2008.

“We have to explore every avenue we can to save money, and this is one way we can reduce our exposure,” she says.

On occasion, she says, the market price for electricity supply may drop below the price in the long-term agreement, but the community will still save money over the term of the contract.

An energy point person like Auclair can help a community by gaining a good understanding of how to work in the competitive energy market. Auclair uses common sources, including Internet research and the Kiplinger Report. And she strongly advocates attending seminars, such as ones that have been sponsored by MunEnergy, to learn more.

“Take the time to listen at the seminars, read the material and try to really understand that everything is tied to oil,” she says. “I am by no means an expert in the field; I learned from the information I’ve gathered.”

Constellation NewEnergy, the MMA-endorsed energy supplier for the MunEnergy program, is available to discuss your requirements and any questions you have about buying power in the competitive marketplace.

For more information, contact MunEnergy Program Manager Erik Everton at (617) 772-7530.


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