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Packaged Ice Picks Enron for Energy Outsourcing

Packaged Ice Picks Enron for Energy Outsourcing

Packaged Ice Inc. plans to outsource energy management of 60 U.S. ice manufacturing facilities to Enron Energy Services (EES). Enron will evaluate and implement capital projects related to Packaged Ice's "private utility" to increase productivity and efficiency of the plants. Enron also will provide electricity or manage energy procurement at the facilities.

"We believe that this agreement with Enron should achieve productivity gains, reduce our energy usage and save millions of dollars over the life of the contract without requiring the dedication of critical internal resources," said James F. Stuart, Packaged Ice CEO.

Terms of the 10-year agreement include a commodity-to-production level pricing agreement. Packaged Ice's energy expenditures over the term of the contract will be tied to the pounds of ice produced and are estimated to be more than $100 million.

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