Allegheny Technologies Inc. and DukeSolutions signed acomprehensive energy alliance agreement yesterday for long-termenergy supply and demand management. Under terms of the contract,DukeSolutions will help ATI implement company-wide initiatives toreduce domestic energy costs in 12 states.

Although no cost savings estimates were released,Pittsburgh-based ATI CEO Robert B. Bozzone said he expects to see”substantial cost savings. He said the company’s natural gas andelectricity expenses total nearly $120 million annually. “Thesecosts have become volatile and can vary widely from one region ofthe country to another.”

Last August, DukeSolutions began using online auctions to buyenergy for its clients to reduce costs (see Daily GPI, Aug. 31). The company uses auction whereclient facilities are grouped to create optimal savings based on thenumber and quality of suppliers, local rules and regulations,pipelines, electric transmission line constraints, distribution andtransmission tariffs, facility loads and market prices.

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