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NNSA to save $7 million on electricity at Sandia, Kirtland Air Force Base over two years

Sandia National Laboratories and Kirtland Air Force Base intend to save an estimated $7 million in electricity as part of a recently entered wholesale electricity contract for calendar years 2014 to 2016. This also adds up to $17 million when compared to the commercial retail rate.

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Western Area Power Administration, with support from the NNSA’s Office of Sustainability and Utilities, entered into

the contract per an agreement between NNSA and Western, in which Western secures contracts for Sandia/KAFB electric supplies and Sandia/KAFB provides Western with the requisite funds to pay for the electric supply services provided.

Don Cook, NNSA’s Deputy Administrator for Defense Programs, said the contract is another example of NNSA’s commitment to identifying ways to improve the efficiency of NNSA’s operations to save money for American taxpayers. “We are continually seeking ways to improve the way we do business while maintaining the highest security and safety standards,” he said.

The 2014-2016 contract covers 83 percent of Sandia/KAFB’s projected electricity needs (in lieu of 100 percent) to allow for potential energy reductions in the out years and/or potential renewable energy purchases.

The annual electric power demand at Sandia/KAFB is about 65 MW and includes approximately 60 tenant organizations located on the Base. Presently, NNSA’s needs are roughly 60 percent of the combined Sandia/KAFB electric power usage.

In 2014, NNSA plans to issue another request for proposal (RFP) through Western to purchase future power for Sandia/KAFB for the years 2017 and beyond. These purchases are expected to continue to provide Sandia/KAFB with low cost electricity.