York, Pennsylvania Charges into Reverse Auctions for Procurement of Municipal Electrical Power

Here  at the Reverse Auction Research Center, we have delved into the growing trend for government agencies to use reverse auctions to save money on their electricity contracts for the often growing needs these public sector entities have for electrical power in an our age that is heavy on technological - and air conditioning - needs. We have seen how entities in a number of states have done so successfully, including:

• New Jersey
• Middletown (Middletown, New Jersey Saves Well-over $100,000 on Energy Purchases through Reverse Auction Process)
• Cherry Hill ("The Proof is in the Pudding": Exhibit A on the Impact of Reverse Auctions in Governemnt )
• Delaware (13 Million Reasons: Why State Governments Must Make The Move to Reverse Auctions ), and
• Pennsylvania (Pittsburgh Blazes The Way, Again, in Reverse Auctions: How Municipal Governments are Saving Millions of Taxpayer Dollars on Their Energy Purchases Through Introducing Reverse Auction-based Competition Among Power Suppliers)

Now, the County Government of York, Pennsylvania is charging into the future as well.

York currently spends $2 million a year on electricity, and York County's Director of Facilities, Scott Cassel, will be employing a reverse auction for the first time for the county's electrical purchases.  With electrical rates expected to increase in 2011 in the deregulated environment in the State of Pennsylvania, Cassel hopes to try and hold the line at least, and perhaps save money, on its overall electrical budget. The auction is planned for July 25th. You can read the article from the July 18th, 2010 edition of The York Daily Record "York County to go shopping online for electricity provider," below:

York County to go shopping online for electricity provider - The York Daily Record

We'll post an update on the results of York Country's reverse auction efforts when they are released post-event. In the meantime, we wish Cassel well in this program!

David

Image by Torley via Flickr

About the Author:

David C. Wyld (dwyld.kwu@gmail.com) is the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/). He currently serves as the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a noted expert on reverse auctions and e-procurement topics, being widely published on the topic and a recognized expert/consultant in the area.

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