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DC Selects WGL to Supply Power to 700 City Government Accounts

September 2, 2015 By Cheryl Kaften

WGL Energy Services announced on August 26 that it had been selected by the District of Columbia Department of General Services (DGS) to supply 400,000 megawatt hours (MWh) of electricity to about 700 city government accounts.

WGL said it had been chosen for the Electricity Service and Supply Contract because it provides a flexible source of power from “a complete ecosystem of energy sources,” including electricity, natural gas, and renewables such as solar and wind.

“[We are] helping the District [to] manage energy as an asset by becoming more energy efficient, reducing volatility, and lowering its carbon footprint,” commented Louis J. Hutchinson, VP and chief revenue officer for WGL, the parent company of WGL Energy.

The new contract is based on an innovative “block and index” strategy that will enable the District to purchase a block of energy at a fixed price; and the remainder at spot market pricing on the PJM Interconnection Real-Time Market.

“Transitioning from a 100 percent fixed-price, full-requirements purchasing contract to a block and index strategy saves taxpayers money, while enabling the District government to integrate renewable and cost-saving wind power into our electricity supply,” said Mark Chambers, sustainability and energy management director at DGS.

According to WGL and DGS, the strategy provides a highly structured and progressive approach to purchasing energy, which mitigates market volatility and helps stabilize energy costs over time.

Service to the 700 government accounts started in August.

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