Contract Status Update Archdiocese of Baltimore Energy Purchasing Cooperative
Rates 2008 2009 July 3, 2008 Highest prices for all energy resources in six years Oil $147.00 per barrel October 29, 2008 Date Contracted Electricity Default rates for May 2009 BGE: $0.1430 per kwh AES: $0.0988 per kwh DELMARVA: $0.1203 per kwh May 2009 Lowest prices in four years Oil $42.00 per barrel Economy Second Lowest Recession Since Depression
October 2008 Electricity Price Projection Annual Increase - Average 11% per year KWh Annual Average Annual Electricity Supply Prices 18 16 14 12 10 8 6 4 2 0 14.9 15.8 13.6 13.8 12.1 10.3 9.2 9.8 8.3 5.8 6.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year
KWh Annual Average Current Electricity Price Projection Annual Electricity Wholesale Supply Prices 14 13.8 13 12 11 10 9 8 8.3 10.3 9.2 9.8 11.1 10.4 11.6 12.1 7 6 5.8 6.5 5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year CQI Associates 4
Electricity Supply Contract BGE With Capacity Increase Rates changed due to capacity pass-thru regulatory change July 2007 9.8% 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: $0.1430 per kwh 2010 Default Rate: $0.11892 per kwh
Electricity Supply Contract Allegheny With Capacity Increase Rates changed due to capacity pass-thru regulatory change July 2007 9.8% Contract Ended June 2010 Small Type 1 Accounts 110, $0.108 per kwh Mid Sized Type 2 Accounts 163, $0.099 - $0.101 per kwh Large Type 3 Account, None in the program Supplier Hess (Purchased Select Energy) 2009 Default Rate: $0.0988 per kwh 2010 Default Rate: $0.0897 per kwh
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 $0.12151 2010 Default Rate: $0.11892 per kwh Allegheny $0.08761 2010 Default Rate: $0.0897 per kwh Delmarva $0.11407 2010 Default Rate: $0.1162 per kwh
Status - BGE June 2010 Contract Rate $0.12151 May 2010 Default Rate $0.11892 May 2011 Default Rate $0.10268 May 2012 Default Rate $0.09127 CQI Associates 8
Status AES/Potomac Edison June 2010 Contract Rate $0.08761 May 2010 Default Rate $0.0897 May 2011 Default Rate $0.0735 May 2012 Default Rate $0.0697 CQI Associates 9
Contract Status DELMARVA June 2010 Contract Rate $0.11407 May 2010 Default Rate $0.1162 May 2011 Default Rate $0.1006 May 2012 Default Rate $0.0895 CQI Associates 10
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 $0.12151 compared to $0.105 per kwh average Current market rate June 2011: $0.091 per kwh CQI Associates 11
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 13 0.12151 $35,906 $35,906 $35,906 $35,906 $107,719 $0.12151 DEFAULT RATE 295,500 DEFAULT RATE 295,500 DEFAULT RATE 295,500 Cost to Cover June 10 to May 11 0.11892 $35,141 $35,141 June 11 to May 12 0.10268 $30,342 $30,342 June 12 to May 13 0.09127 $26,970 $26,970 $92,453 $0.10429 June 11 to June 13 $15,300 Difference $15,266 CQI Associates 12
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 13 0.12151 $35,906 $35,906 $30,342 $26,970 $93,218 $0.10515 Cost to Cover $15,300 $15,300 Total $108,518 $0.01530 DEFAULT RATE 295,500 June 10 to May 11 0.11892 $35,141 $35,141 DEFAULT RATE 295,500 June 11 to May 12 0.10268 $30,342 $30,342 DEFAULT RATE 295,500 June 12 to May 13 0.09127 $26,970 $26,970 $92,453 $0.10429 Cost to Cover June 11 to June 13 $15,300 Difference $16,065 CQI Associates 13
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 15 0.1215 $35,906 $35,906 $33,983 $33,983 $33,983 $33,983 $135,930 $0.1150 CONTRACT 295,500 Cost to Cover $0 DEFAULT RATE 295,500 June 10 to May 15 0.1189 $35,141 $35,141 $30,342 $26,970 $30,141 $33,983 $121,436 $0.1027 Difference $14,495 CQI Associates 14
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 15 0.1215 $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 15 0.1189 $35,141 $35,141 $30,342 $26,970 $92,453 $30,141 $33,983 $64,124 $0.1085 - Difference $15,266 Difference $10,343 June 11 to June 13 $15,300 CQI Associates 15
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 2011. Price will be based on market rates at the time
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
Natural Gas Next Steps Contract Ends: October 30 2011 Rate: $1.086 per therm New Contract Option: November 2011 Meter Read Date Price Option BGE Indicative: $0.648 per therm Nov. 2011 Price to Compare February 2012 $0.785 per therm CQI Associates 18
Electricity Residential Default Rates - Current to September 2011 BGE: $0.10106 per kwh AES/PE: $0.0821 per kwh DELMARVA:$0.0931 per kwh Default Rates - October 2011 to May 2012 BGE: $0.0928 per kwh AES/PE: $0.0705 per kwh DELMARVA:$0.0864 per kwh
Electricity Residential Default Rates - October 2011 to May 2012 BGE: $0.0928 per kwh AES/PE: $0.0705 per kwh DELMARVA:$0.0864 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
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