Vectren Energy Delivery of Ohio Conducts Annual SCO Natural Gas Auction With World Energy Solutions
Event Marks Fifth Consecutive Success for Vectren With World Energy; Results Approved by PUCO
COLUMBUS, Ohio and WORCESTER, Mass., Jan. 29, 2013 (GLOBE NEWSWIRE) -- World Energy Solutions, Inc. (Nasdaq:XWES), a leading energy management services firm, today announced Vectren Energy Delivery of Ohio (Vectren) has successfully conducted its annual natural gas auction for its Standard Choice Offer (SCO) load on the World Energy Exchange®. The auction secured natural gas supplies for Vectren customers from April 1, 2013 through March 31, 2014 and established a retail price adjustment of $1.05 per thousand cubic feet (Mcf).
On January 15, 2013, World Energy Solutions, Vectren's auction manager, conducted a descending clock auction for the SCO. The Public Utilities Commission of Ohio (PUCO) Staff, Vectren and the Office of the Ohio Consumers' Counsel jointly monitored the auction. The following day, the Commission agreed with PUCO Staff's post-auction assessment that the auction was conducted in a fair manner and accurately reflected the current natural gas market.
In all, bids were submitted by seven suppliers based on fixed adjustments to the NYMEX settlement price. Three winning bidders will supply Vectren customers with natural gas beginning April 1, 2013.
Vectren's SCO rate changes monthly and is calculated as the sum of the retail price adjustment plus the New York Mercantile Exchange (NYMEX) month-end settlement price. The price adjustment reflects the winning bidders' estimate of their cost to deliver natural gas from the production area to Vectren's service area. The new price adjustment resulted in the same $1.05 per Mcf as the current adjustment.
"Since 2008, World Energy has been an integral part of our process for sourcing competitive natural gas supply for customers who have not enrolled in Vectren's Choice program," said Scott Albertson, Vice President, Regulatory Affairs at Vectren. "We value the fairness, transparency and efficiency of the auctions and the competitive dynamic they foster, one that truly results in a market-based price for customers."
In a press release dated January 16, 2013, Bruce Weston, Office of the Ohio Consumers' Counsel, stated: "The auction result again confirms the consumer benefit of a competitive standard offer for natural gas."
Added Phil Adams, CEO, World Energy Solutions: "Many utilities team with World Energy for procurements ranging from monthly and seasonal commodity buys to high-visibility, high-stakes events like Vectren's annual SCO natural gas auction. Each and every time a price derived from our auction has been taken to the local utility commission, our utilities have a perfect record of rate case approval."
About World Energy Solutions, Inc.
World Energy Solutions, Inc. (Nasdaq:XWES) is an energy management services firm that brings together the passion, processes and technologies to take the complexity out of energy management and turn it into bottom-line impact for the businesses, institutions and governments we serve. To date, the Company has transacted more than $30 billion in energy, demand response and environmental commodities on behalf of its customers, creating more than $1 billion in value for them. World Energy is also a leader in the global carbon market, where its World Energy Exchange® supports the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based regulatory program in the U.S. to reduce greenhouse gas emissions. For more information, please visit www.worldenergy.com.
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This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to the following: our revenue and backlog are dependent on actual future energy purchases pursuant to completed procurements; the demand for our services is affected by changes in regulated prices or cyclicality or volatility in competitive market prices for energy; and there are factors outside our control that affect transaction volume in the electricity market. Additional risk factors are identified in our Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.
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