Delaware government must become more cost effective and, day by day, it is. Two recent efforts will save the state $23.455 million dollars and demonstrate how demanding fiscal responsibility creates real savings.
The first transaction will save Delawareans $13.165 million over three years, while also increasing the proportion of clean power we use.
The state joined together with school districts, volunteer fire companies, all three counties, universities and other entities to increase our purchasing power for electricity through an innovative reverse auction. The agreement with Washington Gas Energy Services reduces the state’s electricity rates by approximately 18 percent.
The agreement will also enable us to achieve our 30% renewable energy target ahead of schedule. The state currently relies on renewables for 8 percent of our electricity, but that number will rise to 30.5 percent by Fiscal Year 2011 and 35 percent by the third year of the contract. We’ll be saving money, reducing our environmental impact, and creating clean energy jobs in Delaware. (More information here.)
The second transaction was completed last week: the State of Delaware refinanced general obligation bonds to save $10.29 million, most of which will occur in Fiscal Year 2012.
We were able to take advantage of lower interest rates following the reaffirmation of Delaware’s triple-A credit rating by all three national bond rating agencies. We are one of only eight states currently rated at the highest level. This is a great example that shows how responsible financial management can save us money. (More information here.)