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GSA Awards $23 Million in Power Contracts to Two PA Energy SuppliersExelon and Allegheny to Supply Power to 28 Federal Agencies and Non-profit Organizations

GSA # 9533

November 12, 1998
Contact: Bill Bearden (202) 501-1231
Barbara McPhelim (215) 656-6128


WASHINGTON, DC -- Taking advantage of energy deregulation initiatives and leveraging its purchasing power, the U.S. General Services Administration awarded power contracts worth an estimated $23 million on behalf of 28 federal agencies and non-profit organizations to two major energy suppliers in Pennsylvania, which will save nearly $4.5 million.

The GSA Public Buildings Service (PBS) Mid-Atlantic Region headquartered in Philadelphia awarded energy contracts on November 2 to Exelon Energy and Allegheny Energy, two major energy suppliers in Pennsylvania. The firms will provide power to 24 federal agencies, including GSA, and 4 non-profit organizations over the next 12 months beginning January 1, 1999. The contracts will provide an estimated energy use requirement in excess of 600 million kWh.

Dave Barram, GSA Administrator, praised the work of Ken Shutika, Jim Smith, and Don Stiteler, GSA Mid-Atlantic Regional employees, and the agency's Public Utilities Division of the Energy Center of Expertise for actively pursuing other agencies to combine requirements to obtain the lowest rates available in the market.

"By becoming the provider of choice to these other agencies, GSA's efforts will save these agencies and ultimately the American taxpayer an estimated $4.5 million," said Barram. This amount is in addition to any guaranteed savings that these local utilities are offering for 1999.

"GSA's accomplishments in energy management are critical to our future success as we focus on our bottom line," said Robert Peck, GSA's PBS Commissioner. "We are demonstrating that we can provide our customers with the most cost-effective solutions to their energy needs."

Energy management in federal buildings nationwide has long been a focus of GSA. Last month, the agency won four 1998 Federal Energy and Water Management Awards by the U.S. Department of Energy for outstanding work in the areas of energy and water management. And earlier this year, GSA launched "Planet GSA," a new environmental initiative to increase employee awareness on ways in which they can leverage GSA's mission to help with the environment by "building, buying, driving and saving green."

GSA is an executive branch agency that provides policy leadership and expertly managed space, products, services and solutions at the best value to enable federal employees to accomplish their mission. Its real estate services are provided by its Public Buildings Service, which houses about one million federal employees in 270 million square feet of office space in approximately 8,300 facilities.

GSA's Energy Center of Expertise is a multi-disciplinary team within PBS dedicated to providing leadership within the federal government in developing contracting vehicles that procure utility services at the lowest cost to the taxpayer and the greatest value to the agency. Services cover the procurement of electricity, natural gas, water and sewage services. The current emphasis is on positioning the government to take advantage of potential cost savings due to utility industry restructuring initiatives.

"This is the single most successful nationwide contract for procuring electricity for the government," said Beth Shearer, Director of the GSA Energy Center of Expertise. "Each state is handling deregulation a little differently. This is what makes effective procurement so important and why we believe Pennsylvania's model for deregulation is excellent."

The GSA Pennsylvania Power Procurement Participating Agencies are:

Federal Agencies

VA Hospital System
Federal Bureau of Prisons
Internal Revenue Service
Social Security Administration
Army Corps of Engineers
Tobyhanna Army Depot
NIOSH/Bureau of Mines
U.S. Mint
National Guard (Ft. Indiantown Gap)
Job Corps
Coast Guard
U.S. Park Service
U.S. Department of Agriculture
National Oceanic and Atmospheric Admin.
Air Force - 911th Airlift Wing
Federal Aviation Administration
Department of Treasury
General Services Administration
Environmental Protection Agency
Immigration and Naturalization Service
Department of Interior (Fish and Wildlife)
Army Reserve Centers statewide
Department of Energy
U.S. Postal Service

Non-Profit Organizations
Elwyn, Inc. (NISH)
American Red Cross
Devereux Foundation
Delta Community Supports