CASE STUDY
Southbridge Consortium
Industrial Group Aggregation

Late in 2003 a group of industrial customers in the Southbridge, Massachusetts area came together to form their own aggregation buying group in anticipation of the disappearance of Standard Offer Service in February 2005. The Southbridge Group, as this aggregation called itself, conducted a survey of licensed aggregators, brokers and suppliers in Massachusetts. The group selected CES as its aggregator based upon CES's knowledge of the market, open and transparent process and fees, and commitment to back office support.

For ten (10) months, CES participated in numerous meetings with the group, continued market surveillance, and made numerous recommendations based on various market conditions. It was difficult for the group to agree on a uniform approach, so CES continued to make recommendations and coach the group through the electricity market process. In September 2004, CES recommended and designed a short-term product that allowed the group to take advantage of a market dip. Before the conclusion of the agreement, CES negotiated a buy-back of the agreement from the supplier, yielding additional savings.

CES then conducted a second bid process that was for a forward looking ten (10) month product starting on March 1st, 2005, coupled with an option for a lower price, to potentially exercise if the market cooperates (dips). The results of these many actions were the following:

• The Southbridge Consortium saved 3.2 percent against Standard Offer Service for the last four (4) months of 2004.
• The forward looking ten (10) month agreement saved six (6) percent against Default Service
• The potential option can take advantage of a market dip and/or correction resulting in significant additional savings against Default Service