Contract saves city $30 million, supports renewable energy
Mayor Annise Parker announced recently that Houston-based Reliant Energy has been awarded a three-year contract for $500 million to provide electricity to city facilities in keeping with the principles of the Hire Houston First policy.
"It's a great deal for us," said Mayor Parker in a press release. "We are getting a competitive price, and we are able to select a local corporation to do the work. We have a responsibility to the city and the people of Houston to do everything we can to keep jobs in our city. This selection reinforces that commitment."
"We're delighted to have earned the opportunity to continue serving the citizens of Houston," said Jason Few, president of Reliant Energy and chief customer officer of NRG. "Reliant is uniquely positioned to meet the city's energy needs with competitive prices, clean energy choices and innovative, customized solutions. Just as we do for our residential customers, we are providing tools and services to help the city better manage its electricity use, save money and maximize its purchase and use of renewable energy."
Choice Energy Services was contracted to advise the city's power procurement team, whose analysis using market futures forecasting estimated a $30 million decrease in annual expenditures by the city on electricity, which would reduce spending to $100 million per year.
Houston has been ranked the No. 1 governmental purchaser of green energy for the past four years, and its contract with Reliant will continue to enable the purchase of renewable energy credits. Under the purchase agreement with the city, Reliant has also committed to supporting the city's Minority and Women-owned Business Enterprise program by purchasing 15 percent of the electricity needed from a certified MWBE.
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