After the Auction: Ohio's New Electricity Landscape

What is the significance of the May 2009 electricity auctions for Ohio business energy buyers?

The May 2009 electricity auction established default electricity rates through May of 2011 for electricity consumers in the FirstEnergy service territory. Due to wholesale power prices that are at near record lows and the elimination of some tariff charges from the historical regulated rate structure, retail suppliers are now able to offer rates lower than the default rates. This means, for the first time in several years, energy consumers have a real opportunity to beat the default/utility rate on electricity, an opportunity that can translate into major cost savings for savvy buyers. But Ohio businesses need to act quickly. Due to the volatile nature of the wholesale power market, this opportunity could be short-lived.

How can Ohio electricity buyers best take advantage of the new rate structure?

I can�t stress this enough: Businesses can and should �shop� their electricity load amongst retail energy suppliers for lower price opportunities now. One of the most efficient methods of shopping for and procuring electricity is via the World Energy Exchange�. By using World Energy�s proven process, which is delivering cost savings today to Ohio electricity buyers throughout the FirstEnergy service territory (in recent weeks our customers have realized over $3 million in savings against the utility rate), buyers can tap our network to bring multiple suppliers together to compete for their business.

What common mistakes should Ohio electricity buyers look to avoid?

Avoid accepting the first offer of rate savings versus the default rate. Businesses may receive an offer from electricity suppliers that�s lower than what their utility may provide, but how do they know it�s the best rate for their load without market intelligence and proven methods for generating competitive prices? Several companies that have utilized the World Energy Exchange have already contracted at rates significantly lower than those that were originally offered.

Why should Ohio energy buyers consider engaging with World Energy instead of staying on with the utility?

The short answer is that World Energy is already helping your peers across vertical markets - including manufacturing, health care, real estate, and higher education - seize this market opportunity and save money. We want to help you, too. The longer answer is we are already a trusted name in Ohio, and know and understand this market. We have been active here since 2001, with a team based right here in Dublin, successfully transacting natural gas for over 90 customers, many of them national or regional brand names. The World Energy Exchange is a commercially proven, award-winning online platform that gives retail energy buyers the advantage when procuring their electricity. We are energy procurement experts who possess effective methods for ensuring that energy-intensive businesses obtain very competitive, least cost sources of electricity and natural gas. Furthermore, the buyer, our customer, retains complete control over the decision making process, so there�s no pressure to transact.

What do you see ahead for the Ohio electricity and other energy markets?

Businesses will need to stay on top of ongoing changes within the deregulating energy marketplace or engage leading-edge companies like World Energy for market intelligence, expertise and future monitoring of the shifting competitive landscape. As we�ve seen, particularly in the past year, energy markets are incredibly volatile and can move without notice or for unexplained reasons. Due to the uncertainty surrounding these markets, energy buyers can no longer employ the same energy procurement methods and strategies of the past. If they do, consider it an opportunity lost.

About World Energy Solutions, Inc.

World Energy (NASDAQ: XWES; TSX: XWE) operates online exchanges for energy and green commodities. For buyers and sellers of electricity, natural gas and green- energy assets who are impacted by today�s volatile energy markets, World Energy�s proven approach has transformed the normally complex procurement process into a powerful, streamlined vehicle for cost savings. In addition to helping its customers seek competitive pricing on traditional energy commodities, World Energy is taking a leadership position in the emerging environmental-commodities markets. For more information visit www.worldenergy.com.

World Energy Solutions, Inc. 4995 Bradenton Avenue Dublin, OH 43017 www.worldenergy.com

World Energy is author of this article on Energy Procurement Strategies. Find more information about Gas Energy Procurement here.