Electric auction to save millions for Maryland

The Hogan administration announced Wednesday the implementation of a reverse auction for energy purchases will save tax payers about $25 million over the next four years.

Electric companies bid using a reverse auction to provide service to state-owned facilities and buildings at the lowest costs.

Governor Hogan says this shows Maryland is open for business and the energy industry is taking notice.

"We can reduce our spend on energy over four years, locking in a low rate, locking in a low rate for four years is something that the industry didn't think that we would be able to do so were very very happy that we were able to do that and make sure Maryland is open for business," said Ellington Churchill, Jr., Secretary of General Services.

This reverse auction has led to the states lowest electric supply rates in its history and have locked the rates in for a longer period of time than industry predictions.