Illinova Energy Partners (IEP) purchased the Chicago holdings ofthe natural gas marketer Energy Dynamics Inc. last week, adding1,400 commercial and industrial customers to its Midwest base.Illinova also said the purchase will push its overall gas revenuesabove $100 million annually. Terms of the transaction were notdisclosed.

“This purchase immediately strengthens our natural gas customerbase throughout Illinois and Indiana. However, the real benefitcomes from our ability to introduce those commercial and industrialusers to the savings opportunities available with comprehensiveenergy services,” said Tom Rainwater, vice president of IEP’scentral region.

Along with supplying gas to its new customers, Illinova alsowill offer energy management services. Rainwater said IEP canprovide 15-20% savings compared to their customers’ present bills.

Dan Schooley, president of Energy Dynamic’s parent company,Lumen Energy Co., said Illinova’s ability to offer other servicesbesides gas supply was a major factor in the decision. “We wantedto assure our customers of continued natural gas service, as wellas of the added benefit of comprehensive energy management servicesand the ability to purchase electricity from an established powermarketing company in the near future.”

Energy Dynamics serves large-volume energy users in thecommercial and industrial sector. It also was one of the firmsinvolved in the recent natural gas pilot programs launched in theChicago area by NICOR and Peoples Gas, whereby small business usersselected their gas supplier. It is the fourth marketing operationIEP has purchased in the past seven months. The others includeTempe, AZ-based Quality Energy Services (QES), EMC Gas Transmissionin Michigan and Equitable Resource Marketing in Indiana.

“The Energy Dynamics acquisition is right in line with ourstrategy to aggressively grow our customer base and positionIllinova Energy Partners as a full-service energy provider in eachof the markets we serve,” said Ralph Tschantz, IEP senior vicepresident of marketing. IEP plans to increase its natural gasrevenues to $150 million by the end of this year. It also forecastsa customer base of 5,000 industrial and commercial facilities.

John Norris

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