Priority Power Management (PPM), a Texas-based energy consulting services firm, has successfully negotiated and secured a new electricity supply contract for Texas Purchasing Coalition (TPC) member hospitals – resulting in estimated savings of more than $7 million over the five-year contract term.
Based in Plano, Texas, TPC is a member-owned collaborative of about a dozen area hospitals that, through economies of scale, have cumulatively saved $120 million across the supply chain and purchased services spend over the past five years. The group has been working with PPM since 2010.
“We attribute the success of our Committed Energy Program and its ability to maximize our owners’ savings directly to their high level of [dedication],” commented TPC CEO Geoff Brenner, adding, “By demonstrating the benefits of a well-organized, committed group purchase, TPC members will save millions of dollars annually on their electricity purchases.”
“With our large group buying power and ability to move quickly to capture historically low power prices, we were able to achieve very significant energy savings and budget certainty,” stated Dale Droll, director of Engineering for Shannon Medical Center, a member institution based in San Angelo, Texas. “We could not have achieved this level of savings on our own. By working together with TPC and Priority Power Management, we coordinated a single competitive negotiation that was extremely valuable.”
“We are very pleased with the outcome of this most recent energy supply contract negotiation on behalf of TPC member hospitals,” said John Bick, managing principal of PPM. “While there was still over a year remaining on the existing contracts, we saw an opportunity to act now and capture historically low forward energy prices.”