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Electricity Broker to Help NPSD Save Hundreds of Thousands of Dollars |
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In an effort to decrease expenses related to electricity, the North Penn School District (NPSD) contracted with Amerex Brokers, LLC, to purchase power at a reduced cost.
Previously, NPSD purchased PECO utility power through the Montgomery County Intermediate Unit (MCIU). The method used by the MCIU is called Block and Index which typically yielded a savings of 11 percent off the utility benchmark. This method is very conservative and is most successful in a semi-stable market.
The way that NPSD will now purchase power through Amerex will provide more latitude and flexibility in a less stable environment, which the nation is currently experiencing. Amerex uses a method of purchasing power that multiplies a heat rate to the commodity cost of natural gas to calculate power costs. Essentially, power can be purchased the same way natural gas is purchased. Recent data indicates that other school districts using this method have yielded a 25 percent savings off the benchmark as compared to the Block and Index method. This could translate into a $450,000 savings a year for NPSD.
Efforts such as contracting with Amerex, Green Schools initiatives, transportation efficiencies and other changes to decrease operational costs help NPSD direct its valuable resources to its core mission of educating students. |