Rochester businesses combine forces to defray energy costs

Jul 21, 2010 — Foster's Daily Democrat

Joey Cresta

Jul. 21, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- ROCHESTER -- The city has announced a new Rochester Buying Power initiative that officials laud as an innovative energy-buying program that will band small businesses together to purchase energy in a stable and potentially money saving manner.

The program's name refers to the buying power of several Rochester commercial and industrial customers pooled together in order to give them benefits ranging from low pricing and long-term rate stability to advanced energy and utility management tools and services, according to Economic Development Manager Karen Pollard.

Pollard and other city officials announced the program during a ceremony at Poulin Auto Country Tuesday morning. The car dealership is one of the first companies to sign up for the program.

"We obviously were very interested in it," said Ron Poulin in a phone call with Foster's Tuesday afternoon. "We're excited to be one of the first in the city to try it."

Poulin said it takes a lot of energy to run a car dealership, from the extensive lighting, heating and air conditioning costs to the price of the power tools running in the service center.

"It makes a pretty big energy bill. When you see an opportunity to save money, you have to take it," he said.

The Buying Power program does not guarantee savings, but the worst case scenario is only a bill equal to what businesses already pay for utilities, Pollard said. If they are unable to find a better rate, nothing happens and participating businesses continue to pay current utility bills, she said.

It is more likely, though, that businesses will find energy savings in the program, officials said. That is because the partnership will access the energy market directly through experienced wholesale market negotiators, according to a statement from the city's Economic Development office.

Jeff Hiatt, of Performance Business Solutions, is the local representative. He said the goal is to aggregate between 10 and 50 million kilowatt-hours, enabling participants to gain more savings by having a bigger pool.

Hiatt explained the program hinges on the deregulation of the energy industry, which separates its delivery and supply aspects. While participants will continue paying their current utility provider, such as Public Service of New Hampshire, for the delivery, they can pay other deregulated suppliers in one large transaction through the Buying Power program to receive a discount.

While Poulin has opted for a direct fixed rate option, Hiatt said the most popular aspect of the program is a "reverse auction" wherein multiple deregulated providers offer the best prices to participating businesses.

The program also benefits participants by providing access to Utility Module, an online portal developed by Taylor Consulting and Contracting, that will give business owners much more clarity on their utility bills. According to Hiatt, the program allows users to view energy usage down to each individual meter, helping to determine where the most energy is used and where to focus energy efficiency measures.

Hiatt said this sort of program has taken off in Boston, Mass., where in one year, they got 800 businesses on board and produced savings of up to $1.5 million a month.

The city of Rochester itself has also stepped into the program as a participant, marking the first city to participate both for its own energy purchasing and that of its businesses, he said. The city of Somersworth also uses this type of program for its energy needs, he said.

"We're expecting great results here for the businesses who choose to participate," he said.

Pollard said the Economic Development department is the facilitator making Buying Power available to businesses, but noted it is up to each business to decide whether to participate.

"We're making it available, then it's up to them whether they want to participate or not," she said. "This is a program that could help many businesses."

For more information on Buying Power, see rochesterbuyingpower.com.

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