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Supply and Demand Side Companies Merge

Supply and Demand Side Companies Merge

The supply-side energy marketer Strategic Energy Ltd. (SEL) and the demand-side management company Custom Energy LLC (Custom Energy) announced a merger last week designed to help customers lower energy use and cost.

Each will maintain their separate identities with Custom Energy serving as the parent company, but their service will change dramatically, according to Richard Zomnir, president of SEL, "Through our alliance with Custom Energy, we can help ensure companies use less energy and pay less for it -- a complete energy management solution." Terms of the agreement were not disclosed, and no staffing changes are expected.

The major force behind the consumer demand for the merger, according to Zomnir, is energy deregulation. "Today's smart consumers already are cutting costs through curbing energy use, but electricity deregulation adds even greater opportunities for savings."

Greg Orman, Custom Energy's CEO, shares Zomnir's views. "Customers can now turn to Custom and SEL to proactively manage energy costs from start to finish." Custom Energy, based in Kansas City, has been a purely demand side management company for more than 20 years. It designs and installs energy efficient building systems, operations and maintenance programs, and back-up power systems for commercial and industrial customers. "Our partnership with SEL fills a valuable niche in our services, positioning us to provide complete solutions for our clients long-term needs."

SEL has specialized in marketing to commercial and industrial energy consumers. Sources close to the merger cited similar corporate cultures, a results-oriented outlook, objectivity, and strong national base as reasons for the merger. No timetable was given for the merger's completion.

John Norris

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