With electric utility industry deregulation in Alberta, Canada, as of January 1, 2001, Johnson Controls will help manage the entire school district’s electricity procurement. “By outsourcing the time and expertise needed to research, analyze and negotiate for the most reliable, least expensive electricity,” says Don Dart, CBE’s superintendent of business operations, “we will reduce the risk involved with this purchasing decision and be able to focus more effectively on our core competency—teaching and accommodating the needs of children.”
Electricity rates are expected to rise significantly after utility deregulation takes effect. This will add to the uncertainty all large electricity consumers are facing. CBE will rely heavily upon the decades of experience Johnson Controls consultants have at managing strategic energy procurement decisions. The agreement will also be an opportunity for CBE to receive recommendations that will significantly minimize demand-side energy usage in its district through equipment upgrades and student and faculty energy education programs. With more than 200 schools in the district paying nearly $6 million (Cdn.), the risk could be significant in a volatile open market. By constantly monitoring prices from numerous energy marketers, Johnson Controls will select the choice that best matches the school district’s energy requirements and, ultimately, minimize its short- and long-term exposure in an open electricity market.
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