Sempra Inks Energy Deal with Auto Parts Firm
Offering to manage energy and related infrastructure services,
Sempra Energy's energy services provider has inked a deal with one
of the nation's largest auto parts retail chains. Under the deal
Sempra Energy Solutions will provide energy information and billing
management services for 718 retail outlets in 37 states.
The one-year agreement with Advance Auto Parts follows the
retailer's recent purchase of Western Auto, a former subsidiary of
Sears, Roebuck & Co., last year, adding 590 stores and upping
Advance's total facilities to 1,700 throughout the U.S. and Puerto
Rico. The firms would not disclose the dollar value of the contract
or the projected cost savings for Advance Auto. Included in the
Sempra contract are all of the newly acquired stores, along with
128 existing Advance outlets located in the same geographical
The goal is to save Advance Auto at least 2% on its annual costs
for electricity, natural gas, water and sewer services at the
multiple sites that are served by about 600 separate utility
companies. It is still undetermined what proportion the non-energy
services will turn out to be, according to a San Diego-based Sempra
spokesperson, who noted that this is the largest scale in which
they have agreed to manage water/sewer services.
"As we integrate two national retail chain operations, we need
to be armed with the knowledge that will allow us to make the
smartest decisions about energy in the deregulated marketplace,"
said Troy Metz, Advance Auto's corporate service manager. Advance
will use Sempra's Internet-based bill analysis, payment and
reporting system, EnchargeT.
"One of the values that Advance Auto saw in Encharge is that it
would help them integrate these new sites into their operations,"
said the Sempra spokesperson. Sempra will be "supporting the
company's rapid growth as it integrates new stores into its network
and develops a long-term energy strategy," said Sempra's Donald E.
Felsinger, group president of unregulated businesses.
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