History of AOBA Alliance Inc.

Apartment and Office Building Association of Metropolitan Washington

The AOBA Alliance, Inc. is a subsidiary of the Apartment and Office Building Association of Metropolitan Washington (AOBA), which is the leading membership-based organization, representing commercial and multi-family residential real estate, in the Washington, DC area. Since 1974, AOBA has worked diligently to protect and enhance the value of its members’ investments through effective leadership, advocacy, information exchange, and professional development. Having represented the local industry in virtually every major utility proceeding in last 35 years, AOBA has established itself as the primary voice of the commercial building industry in both legislative and regulatory activities.

AOBA is the Washington, DC metropolitan area federated member of the Building Owners and Managers Association (BOMA) and the National Apartment Association (NAA). Through these affiliates, AOBA is represented on Capitol Hill and before federal agencies, and members have access to nationally recognized certification programs, research and information, and networking forums.

In the late 1990’s, the AOBA leadership team recognized that movements toward deregulation of retail electricity and natural gas markets could provide both opportunities and challenges for commercial building owners and managers. Their main concern was to ensure that any deregulation scheme adopted would both maximize their members’ potential savings while also protecting their legal interests. In this context, AOBA became an active participant in both regulatory and legislative activities relating to utility deregulation in the District of Columbia, Maryland and Virginia. AOBA also undertook a nearly three-year long process to assess how it could best assist its members in gaining cost-effective access to energy markets if retail electric and natural gas markets were deregulated.

AOBA Alliance, Inc.

In 2000, AOBA formed a wholly-owned, for-profit subsidiary, AOBA Alliance, Inc. The purpose of the AOBA Alliance is to provide the commercial building industry a channel through which to achieve savings through the procurement of energy and energy-related services as well as greater access to industry information. Shortly thereafter, AOBA Alliance became a licensed broker and market of energy and energy-related services in the District of Columbia, Maryland and Virginia.

Initially, the AOBA Alliance sought to create a structure that would enable participants in to gain a better understanding of their electric and natural gas usage profiles, as well as help them to secure the services they might need to improve the energy efficiency of their buildings. Thus, the first task was to identify potential energy service providers and to create a relationship that would best address these objectives. After interviewing numerous potential energy service providers, the AOBA Alliance selected Pepco Energy Services, Inc. (PES) as its preferred energy service provider and entered into an agreement to market energy and energy-related services in the Washington Metropolitan Area.

On July 1, 2000 when electric service became deregulated in Maryland, the AOBA Alliance and PES were among the first to offer competitively priced electric service in the state. In addition, with the start of deregulation in the District of Columbia on January 1, 2001, the AOBA Alliance and PES undertook competitive electric service offerings in this jurisdiction as well. Over the past 15 years, the AOBA Alliance has saved its participants more than $500 million in energy costs. Currently, more than 10,000 accounts, representing a total load of more than 650 MW of electricity and 2 BCF of natural gas, are under contract through the AOBA Alliance.

The relationship with PES continued until late 2009 when PES announced its decision to exit the retail energy supply industry. While PES continues to honor all contracts through their scheduled expiration dates, it is no longer making new offers or extending existing contracts. Throughout 2009, AOBA Alliance conducted a comprehensive review of potential competitive energy suppliers. In early 2010, the AOBA Alliance announced its selection of Constellation as its new preferred energy supply provider. The primary goal in selecting a new supplier was to obtain competitive pricing while maintaining the highly favorable contract terms and conditions that AOBA Alliance participants have enjoyed over the past decade. The AOBA Alliance’s relationship with Constellation furthers our goals and objectives of providing value-added energy procurement and products and services for our participants.

In October 2010, the AOBA Alliance became licensed by the Pennsylvania Public Utility Commission to serve as a broker and marketer of electricity throughout the Commonwealth of Pennsylvania. The AOBA Alliance markets to all non-residential rate payers of energy including multi-family apartment buildings, office buildings, hotels, universities, churches, synagogues and restaurants. With the expiration of the rate caps in the PECO service territory in the Philadelphia area beginning January 1, 2011, in late 2010, the AOBA Alliance began marketing to the commercial building industry.