IU 13 Electricity Program Saves $2 Million For Local Schools

Lancaster, PA (10/17/2011) - An innovative partnership between Lancaster-Lebanon Intermediate Unit 13 (IU 13) and Direct Energy has proven successful for local school districts with over $2 million in savings.*

In January 2009, the rate caps for electricity were removed and the cost for securing energy increased substantially. A few months prior to the change, IU 13 began researching options to help districts manage the rate increase. Following much research and discussion with member school districts, IU 13 established the Electricity Procurement Program, which strategically purchases electricity in bulk for the participating school districts in the area. The program is designed to: reduce costs by procuring electricity on the wholesale market thereby eliminating additional retail fees and charges, and reduce the cost of operating the program by securing a qualified supplier and utilizing a professional team to manage the process.

After careful review and consideration, IU 13 selected Direct Energy, one of North America's largest commercial retail energy suppliers, as the electricity supplier and has been using the company's PowerPortfolio™ product to oversee the program. The decision was based on Direct Energy's stability, innovative product offerings, and extensive experience in working with schools. PowerPortfolio™ allows members to capitalize on schools' favorable usage profiles. In general, electricity pricing favors schools, since they tend to use less power during the summer, peak during morning and early afternoon hours, and avoid the most expensive late afternoon/early evening hourly rates. PowerPortfolio™ further enables IU 13 to control energy costs by making forward purchases when market conditions are optimal, and satisfying the balance of their usage requirements by prudent use of the hourly market.

Since 2009, the program has resulted in $2 million in total savings for participants. "Districts are continually searching for ways to minimize expenses through collaborative programs, consortium services, bulk purchasing, etc.," commented Gina Brillhart, Chief Financial Officer for IU 13. "Maximizing our buying power and purchasing strategies, and partnering with a reputable supplier to secure electricity, was an innovate solution to the rising cost of electricity. The program has proven successful and continues to strengthen."

"An organization's bottom line can be positively impacted by implementing a customized energy strategy, as seen with IU 13," said Mike Senff, Vice-President North American Sales and Marketing for Direct Energy Business. "By switching to PowerPortfolio™, IU 13 offered its members an efficient, cost-effective energy solution that matched their usage profiles."

To date, 17 districts in Lancaster County along with the Lancaster County Tax Collection Bureau have joined the IU 13 Electricity Procurement Program and have benefited from the savings. Programs of a similar nature have been established in neighboring counties and through area Intermediate Units across the state.

The information presented on this page was gathered and compiled by Direct Energy Business for the convenience of its employees, clients, and potential customers and is for informational purposes only. Although Direct Energy Business is happy to have assisted IU13 in making the energy decision that was right for it, please note that results such as described above are not guaranteed and will depend upon many factors, including, but not limited to, your company's risk tolerance, profile, and past decisions regarding energy purchases.

*In comparison to Pennsylvania Power and Light utility rates.

About Direct Energy

Direct Energy Business is one of North America's largest commercial retail energy suppliers and a Direct Energy company. With more than 20 years of industry experience, Direct Energy Business is dedicated to helping customers make cost-effective choices for their electricity and natural gas requirements. Headquartered in Pittsburgh, PA, Direct Energy Business serves nearly 50,000 customers in 14 states, the District of Columbia and five Canadian provinces. Direct Energy is wholly owned by Centrica plc. (LSE:CNA,) one of the world's leading integrated energy companies. To learn more, visit www.business.directenergy.com/small-business .

About Lancaster-Lebanon Intermediate Unit 13

(IU 13) is an education service agency dedicated to delivering irresistible services and programs to school districts and communities across the state. IU 13 is a leader in recognizing the needs of schools and in implementing programs to meet those needs, with a core compelling purpose to improve student learning. Through partnerships with the 22 school districts in Lancaster and Lebanon counties, as well as nonpublic school students, preschoolers, and adult learners, IU 13 provides outstanding service, support, and solutions to all! For more information visit www.iu13.org .

For additional information, contact:

Emily Richardson
Direct Energy
1-416-758-8979
emily.richardson@directenergy.com

Shannan Guthrie
IU 13
1-717-207-2365
shannan_guthrie@iu13.org