Constellation NewEnergy Finalizes Power Agreement with South Texas Aggregation Project, Inc.
February 17 2006 - 12:39PM
PR Newswire (US)
BALTIMORE, Feb. 17 /PRNewswire-FirstCall/ -- Constellation Energy
(NYSE:CEG) announced that its subsidiary, Constellation NewEnergy,
has renewed its electricity purchase agreement with South Texas
Aggregation Project, Inc. (STAP), to provide 130 megawatts of
electric power for cities and city utility accounts in South Texas.
STAP is a nonprofit corporation run entirely by public officials
with membership available to all political subdivisions in Texas
that purchase electricity for public facilities. The STAP members
purchasing power from Constellation NewEnergy include 39 cities and
a number of governmental authorities. Aaron Thomas, vice president,
Constellation NewEnergy, said, "The renewed STAP contract will
continue to provide the STAP members with excellent customer
service and greater price certainty during the winter months and
throughout the rest of 2006." STAP was created to achieve volume
savings and administrative efficiencies by combining the electric
load of members' electric utility accounts. Since the Texas market
was deregulated in 2002, STAP members have participated in programs
and realized significant cost savings compared to what they would
have paid on the regulated rate, known in Texas as the "Price to
Beat." The renewed contract with Constellation NewEnergy is
expected to provide cost savings for STAP members of more than 20
percent over the current Price to Beat rates. "The STAP model
proves it is far more efficient for a group of municipalities to
come together to solve their energy management needs than to
develop their own expertise," said STAP Board Chairman Jim Darling.
"Furthermore, the combined electric load of the STAP members is
much more attractive to competing electric providers than the load
of any one single city. STAP's bargaining strength has led to lower
costs for all members." Constellation NewEnergy
(http://www.newenergy.com/), a member of Constellation Energy
(NYSE:CEG), is a leading competitive supplier of electricity,
natural gas and energy-related services to commercial and
industrial customers throughout North America. Constellation
NewEnergy operates in all competitive energy markets throughout
Canada and the United States, providing products that enable
customers to effectively manage and control energy costs.
Constellation NewEnergy's regional expertise, coupled with its
national presence, provides customers with customized energy
products and services while leveraging the assets of one of the
strongest integrated energy companies in North America.
Constellation NewEnergy, based in Baltimore, serves more than
10,000 commercial and industrial customers throughout 31 states and
3 Canadian provinces representing more than 15,000 megawatts of
peak load and more than 300 billion cubic feet of annual natural
gas consumption. Constellation Energy
(http://www.constellation.com/), a FORTUNE 200 company with 2005
revenues of $17.1 billion, is the nation's largest competitive
supplier of electricity to large commercial and industrial
customers and the nation's largest wholesale power seller.
Constellation Energy also manages fuels and energy services on
behalf of energy intensive industries and utilities. It owns a
diversified fleet of more than 100 generating units located
throughout the United States, totaling approximately 12,000
megawatts of generating capacity. The company delivers electricity
and natural gas through the Baltimore Gas and Electric Company
(BGE), its regulated utility in Central Maryland. For further
information on STAP, call Jim Darling, McAllen City Attorney, at
956-972-7121 or Geoffrey Gay, STAP legal counsel, at 512-322-5875.
Editors' Note: STAP members include Alamo, Alice, Alton, Aransas
Pass, Beeville, Bishop, Carrizo Springs, Charlotte, Corpus Christi,
Corpus Christi Regional Transit Authority, Dilley, Edna, Fulton,
George West, Hidalgo County Water Improvement District Number 3,
Housing Authority of Corpus Christi, Ingleside, Ingleside on the
Bay, Kingsville, La Feria, Laguna Vista, Lavaca Navidad River
Authority, Los Fresnos, Lyford, McAllen, Mercedes, Mission, Odem,
Orange Grove, Pharr, Pleasanton, Point Comfort, Port Aransas, Port
Lavaca, Portland, Refugio, Rockport, San Juan, Sinton, South Padre
Island, South Texas Water Authority, Taft, Victoria, and Woodsboro.
First Call Analyst: DATASOURCE: Constellation Energy CONTACT: Debra
Beck, Constellation Energy, +1-410-234-7433 Web site:
http://www.constellation.com/ http://www.newenergy.com/ Company
News On-Call: http://www.prnewswire.com/comp/084087.html
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