boston.com Business your connection to The Boston Globe

For a dull business a moment in sun

With the Sox contract, broker will now supply power for all 4 of area's major league teams

In a rare opportunity for glory in the dull business of brokering electricity, Constellation Energy Group Inc. can now boast it's the real power behind all four major league sports teams in Greater Boston.

The Boston Red Sox yesterday confirmed they have signed up the Baltimore energy conglomerate's Constellation NewEnergy division as the energy supplier for Fenway Park.

Constellation was previously tapped by the New England Patriots to provide the power supply for Gillette Stadium. The Celtics and the Bruins, who both call the FleetCenter home, are also Constellation customers.

The Sox had been paying NStar for electric supply, until the end of state-regulated standard offer rates March 1 threatened a rate hike of more than 12 percent. Under the state's 1998 electric deregulation law, customers can choose among companies to supply the electricity they use, but continue to pay utilities such as NStar for actual power delivery.

As part of the multiyear pact, Constellation is also paying the Sox a promotional fee for the right to market itself as ''the power behind the World Champion Boston Red Sox." Constellation and the Sox would not say how many other companies bid for the Sox power supply contract or describe financial terms.

''Publicity-wise, it's fabulous for Constellation -- let's face it," said Angela M. O'Connor, director of energy programs for Associated Industries of Massachusetts, the state's top business lobbying group representing more than 7,000 Bay State companies. ''It's a tremendous feather in Constellation's cap to be able to advertise that."

Some of Constellation's main rivals in the power supply business include Dominion Resources Inc., Select Energy Services Inc., and Transcanada Power Marketing Ltd.

While Constellation will help the Red Sox save thousands of dollars on their electric bills compared to NStar rates, that's a choice that is largely unavailable to average households and small business customers, despite the promises made by advocates of the 1998 deregulation law.

''No one begrudges the fact that the Red Sox can cut a deal, and it's great news for them, but the individual fans sitting in the seat at Fenway Park do not have the same opportunity," said Neal B. Costello, a Boston attorney who represents several energy companies.

Costello has been a leading advocate for new laws that would make it easier for households and small businesses to opt in to joining power-buying cooperatives that could prompt companies like Constellation to market to consumers they now ignore.

''It's difficult to do it one Red Sox fan at a time because they don't represent enough business to make it attractive," Costello said. ''We can do better."

As of January, the most recent tally, just 2.5 percent of Bay State households -- almost all of them members of the Cape Light Compact buyers' cooperative on Cape Cod -- and 6.6 percent of small commercial customers were paying competitive suppliers for power instead of taking their utility's basic power plan, according to the state Division of Energy Resources.

In contrast, more than half of all electricity used by big industrial and commercial suppliers -- the most attractive and profitable customers -- was sold by competitive suppliers.

The public relations value associated with being the ''official supplier" of anything to the Red Sox makes them a far more attractive prospective customer to energy companies.

But Fenway Park also represents a decent-sized consumer of electricity.

During peak demand time on game days, according to Bob Kinscherf, a senior business development manager with Constellation NewEnergy, Fenway Park draws about 3,000 kilowatts of electricity, a load comparable to 2,250 average-sized homes.

A huge consumer of electricity at Fenway is the seven lighting towers that contain a total of 544 1,500-watt lightbulbs maintained by Granite City Electric Supply of Quincy.

Kinscherf said as a business proposition, Constellation was pleased to land the Sox as a customer because of the increasing number of nongame entertainment events and Fenway tours organized by the team.

''They're certainly using it for a lot more things than they did under the old ownership," Kinscherf said, and that translates to more demand for electricity and higher sales for Constellation.

Peter J. Howe can be reached at howe@globe.com.

SEARCH THE ARCHIVES
 
Today (free)
Yesterday (free)
Past 30 days
Last 12 months
 Advanced search / Historic Archives