Following up on the comprehensive energy purchasing program initiated last year, the DEPM Energy Team has recently conducted a new round of auctions for electricity and gas for our managed properties. The resulting master and individual building contracts consolidate the savings obtained last year and bring the pricing to new low levels for our clients.
The core of our strategy lies in aggregating the usage of our managed properties to leverage our purchasing power and position us to offer the lowest energy pricing to each property. We preselect high performing and financially stable (Fortune 500) energy supply companies to participate in the auctions. The latest round can be summarized as follows:
- Our electricity auction for more than 200 million kilowatt-hours of electricity brought a reduction in electrical cost over last year’s contracts of more than $2.6 million.
- The natural gas supply purchasing program of more than 6 million therms of gas will bring additional savings over the contract term of over $1.1 million.
- The negotiated price reductions on more than 10 million gallons of oil continues to bring our buildings over $400,000 in savings annually.
As a result of this program, DEPM-managed buildings will receive the lowest pricing for these energy commodities obtainable for multi-family buildings in the New York City region. The price reductions take effect when the current contracts expire at the end of the second quarter or early in the third quarter of this year. The result will be net savings of more than $4.1 million across the portfolio and over the term of the contracts.
The DEPM Energy Team will continue to strive to ensure the best possible energy pricing for our buildings, taking advantage of current market trends and locking in these beneficial positions with contractual commitments. Any questions on our energy purchasing programs may be directed to firstname.lastname@example.org .