For Immediate Release - July 09, 2009

GOVERNOR PATRICK ANNOUNCES STATE WILL SAVE $10 MILLION ON ENERGY COSTS

Effort in keeping with cost-savings measures being implemented across state government

BOSTON - Thursday, July 9, 2009 - Governor Deval Patrick today announced the Patrick-Murray Administration has worked to save an estimated $10 million on state electricity costs over the next two years, the result of a successful procurement for 24 large state agencies, authorities and non-profit institutions.

The Administration, working with Worcester-based World Energy Exchange and Science Applications International Corporation, conducted a reverse auction for electricity supply for large Executive Branch agencies, the Trial Courts, the Massachusetts Turnpike Authority, the Massachusetts Military Division, Quincy Medical Center, Greater Boston Legal Services and a small non-profit.

"Significantly reducing our energy costs will benefit taxpayers, and stands out as another example of ways we are working to make state government more cost effective and efficient during these tight financial times," said Governor Patrick.

The auctions attracted many of New England's top energy suppliers, were highly competitive and resulted in contracts that will power accounts for the state's executive agencies, including the Department of Capital Asset Management, Department of Conservation and Recreation, State Police and Department of Corrections. A number of large non-executive state agencies also awarded contracts through the auction.

"In a time when every dollar counts, we are pleased that we were able to secure this contract and help provide a real savings to the Commonwealth," said Jim Ferri, Procurement Manager, Energy, at Massachusetts' Operational Services Division. "Wherever possible, particularly in these challenging economic times, it is important we do what we can to secure quality service contracts at lower prices."

The Governor and members of his Administration have been working diligently to streamline operations, identify opportunities for cost-savings and make state government more efficient. In addition to the energy costs savings generated by this procurement, the Administration has also implemented the following measures:

  • Launched a prompt pay discount program, building certain discounts into vendor contracts to encourage agencies to process their bills quickly in order to take advantage of the discount terms offered. In fiscal year 2007, $2.29 million worth of discounts were taken; $3.37 million in fiscal year 2008; and already $1.86 million in the first six months of fiscal year 2009.
  • Consolidated IT spending at Executive Offices to reduce costs, enhance data-security and improve data-sharing.
  • Created an online filing program to allow most taxpayers who file basic tax returns to file their income taxes conveniently, securely and at no costs. This initiative is designed to drive down the number of paper filings, thus decreasing the administrative cost associated with process paper returns; provide citizens with access to a system that saves time and money; and introduce a more eco-friendly approach to doing business.
  • Implement energy-efficient management practices, such as lighting control systems and use of utility rebates. These measures have met the tenets of Executive Order No. 484 and earned the Commonwealth approximately $400,000 in savings.

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