NEWS INFORMATION FROM

THE OFFICE OF MAYOR STEPHEN R. REED
City of Harrisburg
King City Government Center
Harrisburg, PA 17101-1678
Telephone: 717.255.3040

FOR IMMEDIATE USE
24 August 2004

CITY BULK BUYING PROGRAM ON NATURAL GAS SAVES OVER $1.8 MILLION

Harrisburg, PA—Mayor Stephen R. Reed today announced that a natural gas bulk buying program has thus far saved $1,858,660 since its inception, including $417,853 during the past year.

Reed said the city is now able to take-on additional participants. Any group, person or company with a total of $20,000 or more a year in natural gas costs would be eligible, regardless of whether the properties are residential, commercial, industrial, public or non-profit.

The program presently serves the city, Dauphin County, Harrisburg School District, Harrisburg Housing Authority, Harrisburg Redevelopment Authority, The National Civil War Museum, the Pennsylvania National Fire Museum and Community Life Team.

The program was first created by the Mayor in 1999. The city administers it and utilizes William Welch of Benchmark Solutions, Inc., in Pittsburgh as program consultant for the purpose of negotiating and monitoring purchases and billings.

The combined purchasing power of the participants allows for a negotiated lower commodity price for natural gas, purchased when market pricing is usually at its lowest point in the year.

Reed said that in addition to the savings on natural gas, a review of individual natural gas billings of participants has resulted in at least $50,000 in other savings by identifying instances when taxes were charged or incorrect higher tariffs were applied, resulting in rebates and credits to customers.

“The combined purchasing power of the participants, and a better understanding of the participants’ energy needs,” said Reed, “provides the impetus needed for the Program’s Energy Consultant to negotiate lower natural gas prices.” Property owners interested in joining the program may contact Louis Colon at The Mayor’s Office of Special Projects, 405 City Government Center, 10 N. 2nd Street, Harrisburg, PA 17101, or telephone (717) 255.3035.

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