BALTIMORE (January 22, 2002) – The Maryland Department of General Services (DGS) today announced Pepco Energy Services, a subsidiary of Potomac Electric Power Company, has been competitively selected to supply electricity to 18 State agencies and departments. The 24-month contract, which begins July 2002, represents nearly $65 million and 1.6 billion kilowatt hours of conventional and green electricity and is the first purchase of “green” electricity by Maryland State government.
“In a time of fluctuating energy prices, the stability from the two-year contract will permit Maryland to provide reliable and affordable electricity for State government operations,” said DGS Secretary Peta N. Richkus. “Additionally, we have met Governor Glendening's goal that six percent of the electricity supplied be from 'green' generation sources.”
On March 13, 2001, Governor Parris N. Glendening issued an Executive Order which established a goal for the procurement of “green” electricity for use within State facilities, the highest goal of any state. Six percent of the electricity that Pepco Energy Services will supply to the State – enough to meet the annual electricity needs of about 4,000 Maryland households – will be “green” electricity, which consists of electricity produced with renewable resources. Electricity produced with renewable resources has significantly lower environmental impacts than electricity produced with conventional resources.
“Using electricity produced from renewable sources such as biomass helps improve Maryland's environment while reducing our dependence on depletable resources,” said Frederick H. Hoover, Jr., Director of the Maryland Energy Administration. Hoover noted that under the direction of the Governor and General Assembly, Maryland departments and agencies worked together to examine electricity procurement options. He said this unified approach yielded the positive outcome hoped for.
Under the agreement, Pepco Energy Services will provide electricity to agencies and departments located primarily in the Annapolis and Baltimore areas, including the Departments of Corrections, General Services, Health and Mental Hygiene, and Transportation; as well as Morgan State University; Towson University; the University of Maryland, Baltimore; the University of Maryland, Baltimore County; the University of Baltimore; and Baltimore City Community College. Additionally, the Anne Arundel County Public School System’s nine largest facilities and the Camden Yards Sports Complex, home of Baltimore's professional baseball and football teams, are piggy-backing on the new contract.
All of the customers covered by the contract are located in Baltimore Gas & Electric Company’s (BGE’s) retail service area, and all are served under BGE’s “Schedule P,” which is the tariff applying to BGE’s largest commercial and industrial customers. "Schedule P” customers face the decision of either remaining with BGE and paying fluctuating market-based rates for electricity, or choosing a new competitive electric supplier by July 2002.
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CONTACT:
Dave Humphrey, Director of External Affairs
DGS Office of External Affairs
410-767-4652
E-MAIL: Dave.Humphrey@dgs.state.md.us
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