Illinova Bolsters Midwest Marketing
Illinova Energy Partners (IEP) purchased the Chicago holdings of
the natural gas marketer Energy Dynamics Inc. yesterday, adding
1,400 commercial and industrial customers to its Midwest base.
Illinova also said the purchase will push its overall gas revenues
above $100 million annually. Terms of the transaction were not
"This purchase immediately strengthens our natural gas customer
base throughout Illinois and Indiana. However, the real benefit
comes from our ability to introduce those commercial and industrial
users to the savings opportunities available with comprehensive
energy services," said Tom Rainwater, vice president of IEP's
Along with supplying gas to its new customers, Illinova will
also offer energy management services as well. Rainwater said IEP
can provide 15-20% savings compared to their customers' present
Dan Schooley, president of Energy Dynamic Inc.'s parent company,
Lumen Energy Co., said Illinova's ability to offer other services
besides gas supply was a major factor in the decision. "We wanted
to assure our customers of continued natural gas service, as well
as of the added benefit of comprehensive energy management services
and the ability to purchase electricity from an established power
marketing company in the near future."
Energy Dynamics, Inc. serves large-volume energy users in the
commercial and industrial sector. It also was one of the firms
involved in the recent natural gas pilot programs launched in the
Chicago area by NICOR and Peoples Gas, whereby small business users
can select their gas supplier. It is the fourth marketing operation
IEP has purchased in the past seven months. The others include
Tempe, AZ-based Quality Energy Services (QES), EMC Gas Transmission
in Michigan and Equitable Resource Marketing in Indiana.
"The Energy Dynamics acquisition is right in line with our
strategy to aggressively grow our customer base and position
Illinova Energy Partners as a full-service energy provider in each
of the markets we serve," said Ralph Tschantz, senior vice
president of marketing for Illinova Energy Partners. IEP plans to
increase its natural gas revenues to $150 million by the end of
this year. It also forecasts a customer base of 5,000 industrial
and commercial facilities.
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.