ARIN Electric Consortium Formed

With the advent of new electric utility deregulation, ARIN and its member school districts are planning to purchase electric power in large quantities on the open market whenever it is cheaper to do so, and to manage electric consumption through a consortium.

At Tuesday night's board meeting, the IU formed the ARIN Electric Consortium (AEC) for school districts and other entities in Armstrong and Indiana Counties, agreed to sign a contract with OnDemand Energy Solutions for three years, and approved ARIN to participate itself as a member of AEC.

The Pennsylvania Public Utility Commission (PUC) rate caps for Allegheny Power and Pennsylvania Electric Companies (Penelec) expire December 31, 2010. Future electric rates are projected to increase starting January 1, 2011, as rate capes expire.

Western Pennsylvania's intermediate units have worked together over the last year with several energy suppliers and consultants. The goal was to partner with an outstanding energy consultant or supplier to establish sound programs to conserve electric power and manage electricity budgets. OnDemand was founded in 1995 in Pittsburgh and is a licensed PUC procurement company in Pennsylvania with over 1,500 clients purchasing more than two billion annual kWhs of electric power.

Districts that have schools with electricity provided from Allegheny Power and Penelec will be able to take full advantage of this program. It is expected that participating school districts will save significant money in future operating costs. ARIN's districts in Armstrong County saved thousands of dollars through ARIN's previous electric consortium in the mid-1990s, when electric was first deregulated. Districts in Indiana County were unable to save any money due to power industry and government regulations.