In a move to provide a single energy source for its industrial and commercial customers, Sprague Energy Corp. is entering the estimated $250 billion retail electricity market.
While the company has offered electricity to its New Hampshire customers since 1996 as part of the state’s deregulation pilot program, the expansion into Massachusetts, Maine, Connecticut and Rhode Island marks the company’s intent to serve the growing deregulated market.
“For most customers, the process of purchasing electricity on the open-market is complex and time consuming,” said James M. Kantelis, president and chief executive officer, Sprague Energy Corp. “Sprague has served the energy needs of industrial and commercial companies for more than 130 years, and we have used this experience to design an electric supply program that simplifies the challenges,” he said.
One of Sprague’s first customers is Twin Rivers Technologies based in Quincy, Mass. Sprague will provide Twin Rivers with 16,000 megawatt hours per year over three years. “Sprague’s electricity offering provides significant value to us. They worked with us to create a proposal that generates savings versus the standard offer rate. We have enjoyed a long-standing fuel oil relationship with Sprague, and the electricity deal is a logical extension of that relationship”, said Paul Angelico, President of Twin Rivers Technologies.
Within months of launching this new initiative, Sprague has entered into agreements to supply approximately 180,000 megawatt hours of electricity to its customers.
“We are pleased to be adding electricity to the slate of products our sales representatives can offer our customers. We are now in a position to serve the fuel oil, natural gas, coal and electricity requirements of our growing customer base,” said Tom Flaherty, Vice President, Industrial Marketing for Sprague.
“Sprague’s experience in the energy business uniquely qualifies us to provide balanced purchasing strategies designed for each customers specific needs. In addition to providing electricity to Sprague’s existing customer base, deregulating electricity markets provide access to a growing market that is a natural fit to our existing lines of business. It also makes Sprague unique with a product offering to serve our customer’s entire energy needs.” said James G. Daly, Sprague’s Director of Power Market Development.
Founded in 1870 as a supplier of coal and oil, Sprague has evolved into the Eastern Seaboard’s leading resource for industrial, commercial, space heating and transportation fuels, as well as material handling services. Last year, Sprague distributed more than 35 million barrels of petroleum products and 3 million tons of coal and bulk materials in a safe and environmentally sound manner. Sprague is a wholly owned subsidiary of Axel Johnson Inc., a member of the Axel Johnson group of Stockholm, Sweden.