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Chemistry Council Selects Reliant Energy to Supply Members

26 Jun 2003 - In excess of 40 Chemistry Council of New Jersey members have signed or are expected to sign competitive energy supply agreements valued at approximately $70 million with Reliant Energy Solutions East (Reliant Energy Solutions). The agreements are the result of a process sponsored by the Chemistry Council to solicit bids and evaluate competitive suppliers on behalf of its members.
 
"Given that New Jersey electric monopoly prices are fully 50 percent above the national average, we were looking for a supplier that could provide competitive pricing as well as a long-term commitment to providing service in the region," said Hal Bozarth, executive director, Chemistry Council of New Jersey. "Reliant Energy Solutions met those needs and more. Reliant is an excellent choice for our members."
 
Reliant Energy Solutions will provide up to 300 megawatts of power to more than 60 different locations owned by some of New Jersey's largest industrial and manufacturing facilities. Each of the companies was presented with a customized contract designed to meet the specific power needs of its individual business with terms ranging from 10 to 26 months in duration.
 
The Chemistry Council of New Jersey is one of the nation's leading state- level trade organizations representing companies in the business of chemistry, including pharmaceuticals, flavors and fragrances, precious metals, oil refining, cosmetics and food processing.
 
"We are delighted to have been chosen by the Chemistry Council to supply power to its members," said Jim Ajello, president, Reliant Energy Solutions. "The Council consists of some of the world's most sophisticated companies, and we have a strong track record of serving these types of firms. We are delighted that they have placed their confidence in us by signing these contracts."
 
EPEX, an independent energy procurement consultant in the Mid-Atlantic region, was retained by the Chemistry Council to assist in evaluating suppliers. "Reliant Energy Solutions was selected because of its ability to maximize the savings of the group while still addressing the unique issues of each company, such as varying electrical usage profiles and on-site generation," said EPEX Principal Sandra Barber. "It is apparent that the size and prominence of the Chemistry Council participating companies resulted in the best pricing for each individual member."
 
On August 1, the New Jersey electricity market enters phase two of its deregulation plan. Beginning on that date, large commercial and industrial customers who have not switched to a competitive supplier will change to a new hourly rate structure based on the Pennsylvania/New Jersey/Maryland (PJM) real-time energy market.
 
"The Board of Public Utilities' decision to create a default pricing structure that encourages electric competition in New Jersey is finally benefiting the state's largest employers," said Bozarth. "Our request for proposals generated a number of bids that offered our members competitive pricing, innovative product structures and varying contract terms. New Jersey's businesses would benefit tremendously from extending the benefits of competition to the broader market in the coming year."