Maryland Nonprofits Energy Purchasing Program
with
Affiliated Power Purchasers International
Affiliated Power Purchasers International, APPI, is the newest money saving service for members of Maryland Nonprofits. APPI provides energy cost saving services on the national level to 150 associations. APPI is a local company, located in Salisbury, with staff involved as volunteers and board members for nonprofits on the Eastern Shore. APPI combines national energy deregulation experience with local commitment; a winning combination for the members of Maryland Nonprofits.
Since the beginning of deregulation in the mid 90’s, Maryland Nonprofits has been exploring options to help nonprofits control their energy costs. Because electricity rates were artificially low until 2006 for most of our members, competitive alternatives didn’t exist. When the caps were lifted on June 1, 2006, energy increases ranged from 14% to 53% depending on whether the provider was Allegheny Power, BGE, Delmarva or Pepco and whether a Small Commercial or Mid-size Commercial Customer. Members began seeing the impact of the increases on their June 2006 bills. The recent Annapolis legislation that provides rate relief only applies to residential accounts.
Maryland Nonprofits believes that if something is already working we should ask if we can join in (that is how our Workers Compensation Program with IWIF started.) We investigated several association programs that are up and running in Maryland. One program required a separate fee of $250 per location to get a quote. Another program required that once the quote was given, a decision must be made within hours. Neither up-front fees nor speedy decision-making are part of the culture of many nonprofits. In investigating how energy purchasing works, we discovered that different suppliers will give different rates to different types of companies. Another thing we know about nonprofits is that they vary dramatically in how they use energy. We didn’t want a program that would lock us into using just one provider.
APPI’s program met all our requirements. There are no front-end fees. APPI understands nonprofits and has developed ways to deal with decision-making challenges. APPI will shop each nonprofit’s business to find the best provider. APPI has worked in states that have been through the deregulation process and they know what to expect.
The process is simple. You will complete a Letter of Authorization (LOA) and attach a recent copy of your electricity bills. The LOA (which you put on your own letterhead) authorizes APPI to get a record of your energy usage from your current provider and to put your business out for bid. The LOA is not a contract and does not bind you to accept any offer. APPI then provides a list of companies that are interested in providing you electricity and the prices they will charge. You have the option of saying yea or nay. You determine the timing. Only when you say “Yes”, do you sign a contract. That contract is with the energy provider. Included in the cost of energy is a small fee that is paid to APPI for their role. You will not pay anything directly to APPI; APPI receives their fee from the electricity provider.
Changing electricity providers changes only the billing. You will still continue to get transmission from your local utility – Allegheny, BGE, PEPCO, or Delmarva. You don’t need another meter. Service calls are still made to the utility you are currently using.
At this time, APPI’s service is only available for commercial accounts. A number of our members have residential accounts. When energy alternatives are available for residential service, we will notify you.
Maryland Nonprofits has a group of committed volunteers who help evaluate potential money saving opportunities. One of our volunteers offered to be the guinea pig and put his organization’s electricity out for bid. He got the first set of bids and like most nonprofit executives didn’t immediately act on it. Got second bids and committed his organization to a two-year contract that will save him 7 to 8% if the kilowatt costs remain the same for the next twenty-four months. If the cost of energy goes up, the savings will be even more. He estimates it took less than two hours to achieve the savings.
If you are ready to move forward, you can contact APPI at 800-520-6685 or email them at info@appienergy.com. The website can be viewed at www.appienergy.com. Make sure to tell them that you are a member of Maryland Nonprofits.
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