https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
    • Latest videos
    • Product Guides
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
    • Latest videos
    • Product Guides
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE 2022
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com

Economy


FINANCIAL MANAGEMENT/Saving money on energy costs

FINANCIAL MANAGEMENT/Saving money on energy costs

The way energy is bought, sold and delivered in the United States is changing dramatically. And as it changes, state governments are emerging as the new
  • Written by Jeff Householder
  • 1st August 1999

The way energy is bought, sold and delivered in the United States is changing dramatically. And as it changes, state governments are emerging as the new champions in the fight to reduce energy costs for cities and counties.

Local governments are saving on energy costs by tapping the purchasing power of state contracts and volume buying. Additionally, gas suppliers are unbundling services, allowing cities and counties to evaluate the most cost-effective energy source in each location. In essence, what has always been a fixed cost is becoming a variable cost local governments can influence.

In Florida, for example, a program called EnergyDIRECT is helping cities and counties save energy and money. Initiated in 1994, the program, in part, is implementing an age-old concept that large businesses and some governments have used for years: By encouraging users to band together and, thus, increase volume, the state essentially creates a “joint action program” to obtain the lowest price for natural gas and other fuels on the open market.

“There’s been a dramatic shift in thinking about how to save energy and save money,” says state of Florida energy management consultant Jim Geer, who worked with the state to implement its program. “What’s so exciting about it is that we are just beginning to scratch the surface. The possibilities are endless.”

In Florida, the state reached an agreement with Enron Capital & Trade Resources, a commodities broker, to provide gas on the interstate pipeline system. Under EnergyDIRECT, a master gas transportation agreement between the state Department of Management Services and a local gas provider covers the local delivery of gas to all program customers.

The state contract also allows all governmental participants to unite to buy natural gas on the open market at a low price and arrange delivery through a local distribution company. (Ohio, Michigan, New Jersey, New York, Oklahoma and Texas have similar energy-sharing programs in place or currently are in the process of implementing them. In addition, Pennsylvania, North Carolina and Georgia are looking into the idea.)

Since gas costs are a pass-through for gas distributors, there is no loss of margin revenue. Consequently, the local gas provider agreed to let the state buy gas on its own and arrange for transportation independently. The move has created a steady rise in state demand for natural gas.

The program is not a cookie-cutter solution. In some areas, the lack of existing lines, the low price of electricity or the return on investment may not make the switch to natural gas a viable solution.

However, the savings are real. And the lower prices make natural gas a good candidate for schools and other locations that traditionally have had to rely on other fuels. Additionally, gas-fired water heaters recover more quickly than electric heaters, providing a steady, uninterrupted stream of hot water — important in school areas like locker rooms and kitchens. In fact, Florida is looking at adding the Duval County School System in Jacksonville to its customer list.

Besides the schools, Florida’s program includes 38 facilities across the state. Those facilities have saved an estimated $1.15 million thus far in energy costs, Geer says. In the next year, the state plans to add about 500 new facilities to the program.

City and county managers and engineers interested in participating in a program like EnergyDIRECT should contact their state’s purchasing offices to see if one is in place. “When it comes to energy usage, saving money and being more efficient, we’re not playing in the same old ball game,” Geer says. “And we won’t be again.”

Tags: Economy

Most Recent


  • businesses
    Engaging businesses to strengthen your community
    A prosperous business community epitomizes effective city leadership and fuels economic growth. But to fully understand and address specific needs within your community, cities must engage with local stakeholders and businesses to cultivate and maintain a strong business ecosystem. Business engagement plays an essential role in a city’s retention of businesses, helping to foster organic […]
  • Shifting city demographics present an opportunity to build coalitions, address inequality
    Minority-majority cities are driving American growth. New York City, Los Angeles, and Chicago, for example, combined for an estimated 16% of the nation’s total gross domestic product in 2021—future projections anticipate a continuation of this trend, and an opportunity to create coalitions to address injustices. Between 2015 and 2020, 22% of U.S. cities were majority-minority, […]
  • ARPA funds
    Spending American Rescue Plan Act funds: A primer for municipalities
    The American Rescue Plan Act (ARPA) of 2021 is a $1.9 trillion legislative package that includes funding for states, local governments and tribal nations to respond to the economic and public health impacts of the COVID-19 pandemic. While initially restricted, subsequent guidance from the federal government has expanded what those funds can be used for. […]
  • New York City, New York
    Report: While remote work is causing offices to empty out, walkable cities are still in high demand
    Given the reliance on vehicular transportation in the United States, some American cities historically haven’t prioritized being walkable in past planning and or design. But amid an unprecedented shift in the economy toward remote work, those that have are increasingly desirable for prospective residents. A new report from Smart Growth American and Places Platform, “Foot Traffic […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Prioritizing rapid restore leads to stronger ransomware attack recovery
  • Rethinking the ways cities can invest in vital neighborhoods
  • How to innovate and invest on a budget in state and local IT services
  • Treasury Department launches Coronavirus State and Local Fiscal Recovery Funds to deliver $350 billion in funding

White papers


Modernizing government services for today’s resident expectations

24th January 2023

Preparing Your Community Now for the Next Generation of Older Adults

18th October 2022

Helping Government Fleets Achieve Their Goals

30th September 2022
view all

Webinars


Future-proof Your State and Local Government Finance: 5 Key Trends for 2023

6th February 2023

How To: Evaluate Digital Government Service Delivery Technologies

23rd January 2023

Using Technology to Enhance Communications

29th November 2022
view all

PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

GALLERIES


25 of the best city flags flying over American metros and towns

7th February 2023

These 10 American cities are well prepared for a tech-based future

1st February 2023

Report: While remote work is causing offices to empty out, walkable cities are still in high demand

26th January 2023
view all

Twitter


AmerCityCounty

NYC wants to convert unused offices into housing units through relaxed regulations, incentivization dlvr.it/Sj7ls5

8th February 2023
AmerCityCounty

Tuning into your community: Top reasons why your agency needs a podcast dlvr.it/Sj7578

8th February 2023
AmerCityCounty

25 of the best city flags flying over American metros and towns dlvr.it/Sj2RyK

7th February 2023
AmerCityCounty

Residents ask government leaders to show measurable sustainability results and triumphs dlvr.it/Sj1znw

6th February 2023
AmerCityCounty

Future-proof Your State and Local Government Finance: 5 Key Trends for 2023 dlvr.it/Sj1KxB

6th February 2023
AmerCityCounty

Amid spike, federal transportation department launches initiative to curb traffic-related deaths dlvr.it/Shvs31

3rd February 2023
AmerCityCounty

Engaging businesses to strengthen your community dlvr.it/ShvZn0

3rd February 2023
AmerCityCounty

Report: Some public employees face financial hardship; comprehensive pay packages proved ‘a pathway toward economic… twitter.com/i/web/status/1…

2nd February 2023

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.