News

Utilities Service Alliance (USA) members South Texas Project (STP) and Xcel Energy’s Monticello station recently achieved more than $1.1 million in combined Total Cost of Ownership savings recently through the use of a USA supplier agreement with ARES Security Corporation.

The savings/cost avoidance was realized due to Security Post realignment where the ARES Security Product AVERT was used in support of risk-informed decision-making for reducing manpower.

Total Cost of Ownership (TCO) is supplier-furnished value that reduces the total cost of using a product or performing a service. All savings are validated and accepted by the member utility before they are counted.

“Sharing successes and best practices across the Fleet is one of the most significant benefits of membership in USA,” says Jim Kitchens, USA Director of Economic Strategies. “The savings realized here free up resources for other projects, including those that ensure safety and reliability.”

TCO is one of form of savings USA supplier agreements provide. Two more are First-Cost Savings and Rebate Incentives. First-Cost savings is the difference between the price paid by a participating company on a USA agreement and the price that company would pay to the same supplier if it contracted on an individual basis. Rebate incentives for purchase volumes encourage collaboration among members and promote increased utilization of Fleet agreements. Pooling purchases helps members reach higher rebate tiers, which benefits all participants with larger percentage rebates.

Stations needing more information about using AVERT to realize savings can contact:
• Tim Frawley (STP): (361) 972-8555 tfrawley@stpegs.com
• Kevin Nyberg (Monticello): (763) 295-1045 kevin.nyberg@xenuclear.com
• Rob White (Xcel Corporate Functional Area Manager): (612) 330-6863 rob.white@xenuclear.com
• Bob Scott ARES: (571) 351-1260 rscott@aressecuritycorp.com

USA is an alliance of six utilities operating seven nuclear power stations including Columbia, Comanche Peak, Fermi, Monticello, Prairie Island, Susquehanna and South Texas. Combined, they generate more than 12,000 megawatts of energy. In addition to administering a network of more than 60 nuclear suppliers, USA helps its members leverage their combined resources, talent and expertise to serve their customers with clean, safe, reliable and cost-efficient energy. It is on the web at www.usainc.org.