THE RHODE ISLAND ENERGY AGGREGATION PROGRAM
is a consortium of thirty-six Rhode Island cities and towns which are organized under the auspices of the League for the purpose of purchasing electricity and other energy related services from energy power suppliers at the lowest possible prices and with the highest quality of service. Since its inception in July, 1999, REAP has saved its thirty-six member cities and towns over $18 million in their costs for electricity and has become the most successful municipal aggregation program in the nation! Why REAP Was Created Electricity purchasing in a deregulated environment offers many opportunities for those entities that have the requisite expertise and organizational capability to create a vehicle to maximize savings in a deregulated marketplace. Unfortunately, many cities and towns had neither the expertise nor the purchasing clout to maximize their potential energy savings as they simply did not have an electric load profile (a pattern of use over time) that was capable of being leveraged to guarantee the best prices from energy suppliers. As an umbrella organization for its members, the Rhode Island League of Cities and Towns, offered both the required expertise and vehicle by which cities and towns could "reap" the most benefits in a deregulated environment. Cities and towns had already reaped a number of important benefits as a result of the League's initiatives and activities since the Rhode Island Utility Restructuring Act was passed in 1996. The League's numerous communications to its membership about utility restructuring fostered a greater awareness and understanding amongst local officials about the options that were available to them to capitalize on the opportunities in this new deregulated energy environment. The League introduced legislation and secured passage of a law in 1998 to facilitate local government's purchase of electricity and energy services by exempting these purchases from our state laws. The League intervened in utility restructuring hearings at the R.I. Public Utilities Commission to make sure that the interests of cities and towns were understood and recognized by both utilities and their regulators. The League secured venture capital from a national technology organization, Public Technology, Inc., to finance the activities of its expert consultants on energy, Stone and Webster. Local Governments Suited to REAP Benefits of Deregulation Cities and towns were uniquely positioned to benefit from utility deregulation for several reasons. First, municipalities represent one of the most valued ratepayers in the country because of their financial stability. Second, municipalities are large purchasers of electricity. Collectively, cities and towns in Rhode Island annually spend in excess of $8,000,000 dollars for their electricity. Third, the time of day usage of electricity by many cities and towns makes them ideal and attractive consumers for energy suppliers. Fourth, electric suppliers value municipalities for their name recognition or marquis value. Benefits of Joining REAP
Why REAP Makes $ense
REAP Savings to Date by Community |
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