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Duke Inks Deal with Two Mitsubishi Plants in IL

Duke Inks Deal with Two Mitsubishi Plants in IL

Mitsubishi Motors Manufacturing of America (MMMA) announced it entered into a multi-year agreement with Duke Energy's DukeSolutions Inc. last week to manage energy service for Mitsubishi's two-million-square-foot manufacturing plant in Normal, IL. Over the contract term, DukeSolutions will support up to $30 million of energy expenditures for MMMA.

DukeSolutions will deliver savings through strategies such as rate negotiations, special contracts, supply management and comprehensive plant improvements, the company said. In a companion agreement, DukeSolutions is supplying gas valued at almost $7 million to the Normal site over a multi-year term.

The $10 billion electric utility industry in Illinois will begin deregulation in October. MMMA said this agreement will help it be prepared for that transition. MMMA is currently one of Illinois Power's top 20 customers and said it will switch suppliers if it finds a better deal. Larry Greene, executive vice president of procurement and supply for MMMA, said, "Competitive, quality supply that meets our requirements is the essence of our purchasing charter, so we naturally welcome the opportunities that deregulation affords."

MMMA and DukeSolutions are also looking at major infrastructure projects to improve productivity and efficiency within the plant. "Our real contribution is our ability to leverage all parts of the energy value chain," says Jack Menninger, vice president of DukeSolutions Midwest region. "Customers see the greatest boost in financial performance when we integrate supply, efficiency, risk management and financial products in one unified package."

John Norris

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