21 Utilities, Energy Companies Form E-Procurement Venture
A consortium of 21 energy and utility companies have formed a
new company, Pantellos Corp., to operate an e-procurement web site,
which was announced earlier this year. The companies also have
hired Commerce One, a world leader in e-commerce site development,
as their primary technology partner. Pantellos will have an initial
capitalization of $100 million.
The new web site will be used for the purchase and sale of goods
and services between the energy industry and its suppliers,
targeting the $130 billion plus utility and energy supply
The consortium, which added six new members recently, announced
plans in March to develop the e-commerce platform. It will allow
utilities and other energy companies to buy everything from power
turbines to office supplies. "It will be almost like a large
utility version of E-Bay," said AEP spokesman Pat Hemlepp.
The new members include Carolina Power & Light, DTE Energy,
Dominion Resources, El Paso Energy, GPU, Inc. and Ontario Power
Generation. They join American Electric Power, Cinergy,
Consolidated Edison International, Duke Energy, Edison
International, Entergy, FirstEnergy Corp., FPL Group, PG&E
Corp., Public Service Enterprise Group, Reliant Energy, Sempra
Energy, Southern Company, TXU Corp. and Unicom.
By bringing customers and suppliers together online, the
founders of Pantellos expect to streamline purchasing processes,
shorten purchasing cycles, and increase accessibility between
buyers and sellers, according to PG&E Corp. CEO Robert D.
Glynn, who added that the creation of the new online marketplace
also should promote supplier diversity.
"PG&E Corporation maintains a strong commitment to supplier
diversity," said Glynn. "Pantellos will provide small and
historically underutilized suppliers open, low-cost access and
increased market reach. Our support of Pantellos represents a great
opportunity for us to further our ongoing commitment to these
suppliers. Specifically, through our businesses, we envision using
Pantellos' services in such a way as to enhance the access of
women- and minority-owned businesses."
Pantellos is seeking participation from all interested
suppliers. For more information see www.pantellos.com