Contract Status Update

Transcription

1 Contract Status Update Archdiocese of Baltimore Energy Purchasing Cooperative

2 Rates July 3, 2008 Highest prices for all energy resources in six years Oil $ per barrel October 29, 2008 Date Contracted Electricity Default rates for May 2009 BGE: $ per kwh AES: $ per kwh DELMARVA: $ per kwh May 2009 Lowest prices in four years Oil $42.00 per barrel Economy Second Lowest Recession Since Depression

3 October 2008 Electricity Price Projection Annual Increase - Average 11% per year KWh Annual Average Annual Electricity Supply Prices Year

4 KWh Annual Average Current Electricity Price Projection Annual Electricity Wholesale Supply Prices Year CQI Associates 4

5 Electricity Supply Contract BGE With Capacity Increase Rates changed due to capacity pass-thru regulatory change July % Contract Ended June 2010 Small Type 1 Accounts G, $0.111 per kwh Mid Sized Type 2 Accounts GS, $0.108 per kwh Large Type 3 Accounts GL, $0.113 per kwh Large Primary Accounts GLP, $0.105 per kw Supplier Hess (Purchased Select Energy) 2009 Default Rate: $ per kwh 2010 Default Rate: $ per kwh

6 Electricity Supply Contract Allegheny With Capacity Increase Rates changed due to capacity pass-thru regulatory change July % Contract Ended June 2010 Small Type 1 Accounts 110, $0.108 per kwh Mid Sized Type 2 Accounts 163, $ $0.101 per kwh Large Type 3 Account, None in the program Supplier Hess (Purchased Select Energy) 2009 Default Rate: $ per kwh 2010 Default Rate: $ per kwh

7 New Electricity Contracts Offered October 29, 2008 New Accounts December 2008 to May 2013 Existing Members on Hess contract starting June 2010 to May 2013 BGE $ Default Rate: $ per kwh Allegheny $ Default Rate: $ per kwh Delmarva $ Default Rate: $ per kwh

8 Status - BGE June 2010 Contract Rate $ May 2010 Default Rate $ May 2011 Default Rate $ May 2012 Default Rate $ CQI Associates 8

9 Status AES/Potomac Edison June 2010 Contract Rate $ May 2010 Default Rate $ May 2011 Default Rate $ May 2012 Default Rate $ CQI Associates 9

10 Contract Status DELMARVA June 2010 Contract Rate $ May 2010 Default Rate $ May 2011 Default Rate $ May 2012 Default Rate $ CQI Associates 10

11 Cost to Cover Difference between contract rate and market rate if account was terminated June 2011 Average account: 295,000 kwh per year (24,583 per month) Average cost: $35,900 per year ($2,987 per month) Cost to cover: $15,300 for remaining 24 months $ compared to $0.105 per kwh average Current market rate June 2011: $0.091 per kwh CQI Associates 11

12 Contract & Cost to Cover Calculations BGE Account CONTRACT 295,500 kwh PERIOD Rate Annual Cost Year One Year Two Total Cost Three Years Average Rate Year Three June 10 to May $35,906 $35,906 $35,906 $35,906 $107,719 $ DEFAULT RATE 295,500 DEFAULT RATE 295,500 DEFAULT RATE 295,500 Cost to Cover June 10 to May $35,141 $35,141 June 11 to May $30,342 $30,342 June 12 to May $26,970 $26,970 $92,453 $ June 11 to June 13 $15,300 Difference $15,266 CQI Associates 12

13 Pay Cost to Cover Return to Default Rate kwh PERIOD Rate Annual Cost Year One Year Two Year Three Total Cost Three Years Average Rate CONTRACT 295,500 June 10 to May $35,906 $35,906 $30,342 $26,970 $93,218 $ Cost to Cover $15,300 $15,300 Total $108,518 $ DEFAULT RATE 295,500 June 10 to May $35,141 $35,141 DEFAULT RATE 295,500 June 11 to May $30,342 $30,342 DEFAULT RATE 295,500 June 12 to May $26,970 $26,970 $92,453 $ Cost to Cover June 11 to June 13 $15,300 Difference $16,065 CQI Associates 13

14 Blend and Extend Offer to 2015 kwh PERIOD Rate Annual Cost Year Two Year Three 2013 Year Four 2014 Year Five 2015 Total Four Average Years Rate Year One June 10 to May $35,906 $35,906 $33,983 $33,983 $33,983 $33,983 $135,930 $ CONTRACT 295,500 Cost to Cover $0 DEFAULT RATE 295,500 June 10 to May $35,141 $35,141 $30,342 $26,970 $30,141 $33,983 $121,436 $ Difference $14,495 CQI Associates 14

15 Remain till 2013 & Price Two Years New Contract to 2015 kwh Annual Cost Year One 2011 Year Two 2012 Year Three 2013 Total Year Four 2014 Year Five 2015 Total Average Rate PERIOD Rate June 10 to May $35,906 $35,906 $35,906 $35,906 $107,719 $26,891 $26,891 $53,781 $0.091 CONTRACT 295,500 Cost to Cover -0- DEFAULT RATE 295,500 Cost to Cover June 10 to May $35,141 $35,141 $30,342 $26,970 $92,453 $30,141 $33,983 $64,124 $ Difference $15,266 Difference $10,343 June 11 to June 13 $15,300 CQI Associates 15

16 Natural Gas Contract - Current Central Maryland Current Contract: November 2008 to October 2011 $1.086 per therm Supplier - Washington Gas Energy Members with WGES in other programs will be transitioned to the co-op as the current contracts end for a term to end October Price will be based on market rates at the time

17 Natural Gas Contract Western Maryland Current On Default Service Current Supplier: Columbia Gas of Maryland Market Price: $0.64 per therm delivered Bid Option: Not considered cost effective at this time

18 Natural Gas Next Steps Contract Ends: October Rate: $1.086 per therm New Contract Option: November 2011 Meter Read Date Price Option BGE Indicative: $0.648 per therm Nov Price to Compare February 2012 $0.785 per therm CQI Associates 18

19 Electricity Residential Default Rates - Current to September 2011 BGE: $ per kwh AES/PE: $ per kwh DELMARVA:$ per kwh Default Rates - October 2011 to May 2012 BGE: $ per kwh AES/PE: $ per kwh DELMARVA:$ per kwh

20 Electricity Residential Default Rates - October 2011 to May 2012 BGE: $ per kwh AES/PE: $ per kwh DELMARVA:$ per kwh Co-op Rates Current for 12 months Starting June 2011 MRD BGE: $0.090 per kwh AES/PE: $0.067 per kwh DELMARVA:$0.089 per kwh

21 NEXT STEPS Electricity Cancel & Pay Cost to Cover Return to Default Rate Blend & Extend to 2015 Remain till 2013 & Re-price Spring 2013 Natural Gas Return to Default Rate November 2011 Contract for 12 months November 2011 to 2012 Residential Remain on default Contract for 12 months starting June 2011 CQI Associates 21