University of California, California State University Sign Direct-Access Power Contract with APS Energy Services(OAKLAND, Calif., March 26) – The University of California and California State University today announced signing of an agreement with APS Energy Services to provide direct access electricity to both university systems.
APS Energy Services will supply electrical power to seven of the 10 University of California (UC) campuses and 19 of the 23 California State University (CSU) campuses, plus the CSU Chancellor's Office and UC Office of the President.
Based in Phoenix, Ariz., APS Energy Services is a full-service energy provider offering services to commercial, industrial and residential customers. It is a member of Pinnacle West Capital Corp. In 1997, it became the first energy service provider to offer direct access in California.
"We expect this agreement will provide a direct access rate structure that will be extremely advantageous to the universities compared with other alternatives," said Joseph P. Mullinix, UC senior vice president for business and finance.
"While the overall energy costs to the universities will be greater, due to new market conditions, the new agreement will allow the California State University to continue to save money on electrical costs, which will benefit our students and our programs," said Richard P. West, CSU executive vice chancellor and chief financial officer. "With the pressures on the state budget, saving funds where we can is very important to the CSU."
The contract serves all UC campuses except UCLA and UC Riverside. It serves all CSU campuses except Los Angeles, Northridge, Sacramento and Stanislaus.
The two university systems' original four-year direct access contract with Enron Energy Services, expires on March 31, 2002. The new contract transfers service to APS Energy Services.
The University of California and California State University have been leaders in negotiating long-term, low-cost contracts to mitigate fluctuations in electricity markets.
Last Updated: 26 March 2002