Six Utilities Form Energy E-Procurement Site
CMS Energy, Ameren Corp., KeySpan and UGI Corp. have joined
Allegheny Energy, Allete (formerly Minnesota Power) and PPL Corp.
in the formation of Enporion Inc., a global e-procurement exchange
for the energy industry. The companies see the potential for big
savings in pooling their buying power over the new exchange.
"This is a major step in taking advantage of technological
capabilities to unlock superior buying power, which will achieve
purchasing savings and bring more value to our shareholders," said
CMS Chairman William T. McCormick. "All energy utilities will be
able to use this global partnership for their benefit."
The global partnership will focus on building cost-effective
relationships between buyers and sellers. Both buyers and sellers
should see reduced cycle times, lower inventories, lower
transaction costs and enhanced profitability, the companies said.
Enporion is scheduled for commercial operation by the end of
this year. The Enporion partnership is similar to what 21
utilities, including Unicom, Reliant, Southern, Sempra, AEP,
ConEdison, Entergy and others, did in June with the formation of
Pantellos Corp. The Pantellos sponsors hired Commerce One as their
primary technology partner. Pantellos, with an initial
capitalization of $100 million, is scheduled to begin operation
early next year.
CMS's Thomas Burnham, manager of purchasing, said Pantellos is
not open to any more investors. "We thought that Enporion gave us
the best opportunity to both be an investor and get the benefits of
process and product savings."
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