Previously here at the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), we have reported on the successful electricity buy accomplished through the aggregation of a number of townships and communities across New Jersey who participated in a reverse auction conducted by the New Jersey Sustainable Energy Joint Meeting (NJSEM) (see Middletown, New Jersey Saves Well-over $100,000 on Energy Purchases through Reverse Auction Process - http://reverseauctionresearch.blogspot.com/2010/07/middletown-new-jersey-saves-well-over.html).
Now comes a report from the Cherry Hill Sun, reporting on the impact on the local township. You can read the full story by clicking on the link below:
Program to save town on lighting bill | Cherry Hill Sun
Great observations here that all public officials should take note of, as the aggregation of demand between small purchasers, combined with the competitive bidding environment of the reverse auction, produced big savings - in excess of ten percent - for the participating communities. Cherry Hill Mayor Bernie Platt commented that: “One of our most substantial, ever-increasing and painfully unpredictable operating costs is purchasing energy to run municipal services. When we paired that problem with our sustainability and environmental goals, such as reducing our carbon-emissions footprint, it seemed logical to join the NJSEM – and Township Council members and I are quite pleased that the decision is already paying off in the form of taxpayer savings.” Dan Keashen, Chief of Staff for the New Jersey Sustainable Energy Joint Meeting, remarked that: "The proof is in the pudding. Through this public bid for street-lighting, we received a lower rate than we had through our utility provider – that’s the sort of out-of-the-box collaborating that will help us through what is, essentially, a shared fiscal crisis.”
"The proof is in the pudding" and "out-of-the-box" stuff - that's not stringing cliches together - that's REAL savings that can save REAL dollars for all local, state, and even national governments through the strategic use of reverse auctions in their procurement efforts. And, with budgets being what they are across the public sector, this is a move that should have been made yesterday!
Do you want to explore how your agency can make the move to save money through using reverse auctions? If so, contact us here at the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/)
to learn more.
David
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