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History
The AOBA Alliance has evolved from a long history
of leadership on the part of the Apartment and Office Building Association
of Metropolitan Washington (AOBA) in energy and utility matters.
Having represented the commercial building industry in virtually
every major utility proceeding affecting electricity and natural
gas consumers in the Washington Metropolitan area for the last 25
years, AOBA has established itself as the primary voice of the commercial
building industry in both legislative and regulatory activities.
Recognizing that movements toward deregulation of retail electricity
and natural gas markets could provide both opportunities and challenges
for commercial building owners and managers, the leadership of AOBA
sought to ensure that any deregulation scheme adopted would maximize
their potential savings while protecting their interests. In this
context, AOBA became an active participant in both regulatory and
legislative activities relating to utility deregulation in Maryland,
the District of Columbia, 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.
Those activities culminated early in 2000 with
the formation of the AOBA Alliance, Inc., a wholly-owned, for-profit,
subsidiary of AOBA. The AOBA Alliance was charged, in part, with
facilitating the participation of apartment and office building
owners and managers in newly deregulated retail markets for electricity
and natural gas. (See the AOBA Alliance, Inc. Mission
Statement). However, understanding the importance of energy
use information and energy use efficiency in competitive markets,
the AOBA Alliance also sought to create a structure that would aid
participants in their efforts to gain a better understanding of
their electrical 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 of the AOBA
Alliance was identify providers and assess the types of relationships
with energy service companies that would best address those objectives.
After interviewing a large number of potential service providers,
the AOBA Alliance selected PEPCO Energy Services, Inc. as its "preferred
provider" and entered into a three-year partnership arrangement
to develop and market energy and energy-related service products
to the office and apartment building industry in the Washington
area.
When electric service became deregulated in Maryland
on July 1, 2000, AOBA was one of the first organizations to offer
competitively priced electric service in that state. By late August
2000, the AOBA Alliance had enrolled over 30 building management
companies in its Maryland offering representing over 1,500 electric
service accounts and an aggregate peak demand of more than 137 MW.
That was more than double its initial enrollment target for Maryland.
This has been followed by two more successful electric offerings
in Maryland. In addition, with the commencement of deregulation
of retail electric markets in the District of Columbia on January
1, 2001, the AOBA Alliance undertook the formulation and marketing
of competitive electric service offering in that jurisdiction. Its
first District of Columbia offering also substantially exceeded
initial marketing goals. In the District and Maryland combined,
the AOBA Alliance now has enrolled more than 3,000 electric accounts
with an aggregated load in excess of 325 MW.
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