LOUISVILLE, Ky. (Feb. 21, 2001)—The International Tire and Rubber Association is offering members reduced utility rates through a combined purchasing program administered by Affiliated Power Purchasers International (APPI).
By leveraging the combined purchasing power of ITRA participants with that of other trade groups, the new Energy Buyers Program can reduce utility costs in states that have deregulated the sale of electricity and natural gas.
APPI, which is not affiliated with any utility or other energy-related company, is compensated only if it produces savings for program participants, ITRA said in announcing the new program Feb. 19.
Furthermore, by handling the negotiating and technical aspects of utility purchases, APPI will enable participants to spend more time managing and growing their businesses, ITRA said. In this way, participants will be able to reap the benefits of deregulation while avoiding its potential risks.
However, because deregulation is accomplished on a state-by-state basis and there is no federal legislation mandating it, the program´s potential benefits vary according to a participant´s location.
ITRA offered the following state-by-state rundown:
* In New Jersey and Pennsylvania, which have completely deregulated the sale of electricity and where there is active competition among potential suppliers, savings for participants in the Energy Buyers Program are averaging 12 percent, ITRA said.
* Delaware and Maryland only recently deregulated electricity and the APPI is still negotiating initial savings opportunities for program participants there.
* Arizona, California, Connecticut, Maine, Massachusetts, Montana, New Hampshire, New York, Oklahoma, Oregon and Rhode Island likewise have implemented deregulation. However, potential savings currently are limited due to the lack of a competitive market, the association said.
* In Michigan, savings opportunities under the program are limited to the Detroit Edison service territory only.
* Illinois, New Mexico, Ohio, Washington D.C. and West Virginia only began deregulating electricity Jan. 1.
* Texas and Virginia will commence deregulation Jan. 1, 2002.
Arkansas will deregulate Oct. 1, 2002.
* Nevada will enter the competitive phase of deregulation, Jan. 1, 2003. Alaska and South Carolina have deregulation legislation pending. However, but no dates have been set for implementation.
* Georgia, Hawaii, Idaho, Kansas, Kentucky, Nebraska, South Dakota and Tennessee presently are not considering deregulation of electricity. The remaining states are in the process of legislative investigation and have not yet deregulated, ITRA said.
Similar information regarding the deregulation of natural gas is available by calling the APPI at (800) 520-6685 or visiting the company´s Web site, www.apienergy.com/itra.