Pepco Energy Services has been awarded a two-year contract to supply natural gas to various Department of Defense (DoD) facilities and federal civilian agencies in the Northeast and across the central part of the United States.

The $92.5 million contract to supply 4.2 million Dth would begin Oct. 1 and would run through Sept. 30, 2010. The contract, secured by the Defense Energy Support Center in Fort Belvoir, VA, is fixed with an “economic price adjustment,” the DoD stated. The original proposal was web-solicited with 37 responses, according to DoD.

Pepco Energy Services, a subsidiary of Pepco Holdings Inc., estimated that it has saved federal agencies nearly $46 million in electricity costs in the Washington, DC, area over the last 18 months under a U.S. General Services Administration (GSA) contract. Between December 2006 and May, the GSA-DC portfolio used 2.5 billion kWh, Pepco said. During that time, it said the GSA portfolio saved $45.75 million versus the applicable standard offer service rates.

Based on the current standard offer service rates, Pepco Energy Services estimated that the GSA portfolio would save around $39 million annually for a total savings of $58.5 million between now and December 2009.

The 36-month contract, which began in December 2006, called for Pepco Energy Services to provide power to national landmarks that include the U.S. Capitol, the Smithsonian Institution, the National Gallery of Art and the Kennedy Center, as well as the U.S. Departments of Agriculture, Commerce, Energy, Interior, Justice, Labor, State, Transportation and Treasury. Pepco estimated that 9.5% of the total electricity purchase includes “attributes” from renewable resources.

Pepco Energy Services also supplies electricity to several government agencies in New York and Chicago, including GSA, the Social Security Administration, the Railroad Retirement Board, the Bureau of Prisons and the Edward Hines Jr. Veterans Affairs Hospital.

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