PowerOptions unveils $400 million agreement
PowerOptions, an energy purchasing consortium for local government entities and nonprofits, announced a projected $400 million agreement with a unit of Hess Corp. that it says will allow members to buy natural gas at reduced costs.
By aggregating the energy needs of its members, PowerOptions can negotiate bulk energy purchases at lower prices than individual members can get on their own.
Currently, many PowerOptions members are buying natural gas under contracts negotiated several years ago when natural gas prices were much higher than they are today.
The four-year deal just announced will allow PowerOptions members to "blend their previous higher prices with today’s unprecedented low market prices – resulting in greater predictability for members and cost savings in the near term," PowerOptions said in a press release. "The immediate cost reductions come at a time when many nonprofits and governmental entities, particularly cities and towns, are facing unprecedented budget deficits."
Operating as a stand-alone nonprofit, PowerOptions was formed in 1996 by the Massachusetts Health and Educational Facilities Authority, the largest issuer of tax-exempt revenue bonds in the Commonwealth.