March 31, 2011

CONNECTICUT STATE AGENCIES TO SEE REDUCED ENERGY RATES

New fixed-price natural gas contracts will save approximately $660,000 in first quarter of FY12

(HARTFORD, CT) - The Office of Policy and Management (OPM) announced today that it has secured new fixed-price contracts to supply natural gas to Connecticut's state agencies. One contract, covering 453 natural gas accounts for the period of July 1 through September 30, 2011, will result in a price reduction of 37.7 percent. An additional contract, covering 12 fuel-switching accounts for the same period, shows a 25.1 percent reduction. OPM estimates the combined cost savings for the state at approximately $660,000.

"At a time when state agencies are being asked to do more with less, this is a significant help," said Gian-Carl Casa, Undersecretary for Legislative Affairs. "As always, we will continue to monitor conditions and trends in the energy market in an effort to secure the best available rates for the state."

For the state's 453 accounts natural gas accounts, the new contract price is set at $6.68 per dekatherm (Dth), compared to the current price $10.73. For the state's 12 fuel-switching accounts, the new price is set at $6.35/Dth, versus the current price of $8.48.

The Office of Policy and Management (OPM), in conjunction with the Department of Administrative Services (DAS), has responsibility for establishing prices for the state's energy commodities, primarily electricity and natural gas. In addition to monitoring energy commodity markets on an on-going basis, OPM engages the services of an expert energy consultant to actively observe market trends and advise on purchasing decisions. Employing these strategies for purchasing energy commodities helps provide cost-savings and price stability for state agencies.

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For Immediate Release: March 31, 2011

Contact: Office of Policy & Management

860-418-6200

Twitter: @GovMalloyOffice

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