AMDAX.com, an e-commerce company based in San Diego, CA,unveiled plans yesterday to host an Internet-based real-timeutility auction system, in an attempt to give California gas andelectric consumers another option to secure their energy needs. Thecompany said it was in the midst of finalizing numerous contractswith electric generators, gas and electric marketers and end users.Currently, the auction is set to start Nov.1.

Bill McKenna, an AMDAX spokesman, said he would not be surprisedif “hundreds of millions of dollars” worth of transactions passedthrough the system in the first year of its existence.

“Essentially, we will provide solutions for the challengespresented to California’s energy industry by deregulation. We willoffer services for every step of an energy transaction, including abilling engine, metering solutions, cash flow management andconsulting services in addition to commodity procurement,” saidMcKenna.

Concerning the auction process, industrial and electricconsumers intent on buying energy from suppliers in California willpay an administrative fee to participate, but McKenna said it willbe waived for the first six months the auction is operational.Marketers will pay a 2% clearinghouse fee.

Once in the auction, buyers can create and submit their energyload profile. Their parameters, needs and credit are displayed onthe screen for suppliers to see and bid on. Such a process can leadto savings, said Shop Energy, an agent company for AMDAX that otherend user companies can contact in order to join the new exchange.

“Had this system been around over the past three years, acompany with a level load profile, could have purchased theirnatural gas supplies at an average cost of NGI minus 11 at theSouthern California Border,” said John Walker, a Shop Energyrepresentative. Walker explained that if the Internet auctionsystem had been operational three years ago, any end user logged incould have locked in a $2.35 price for gas at the SouthernCalifornia Border, which would have averaged 11 cents less thanNGI’s SoCal indexes since that time. The process also provides anoption to the request for proposal (RFP) process, which Shop Energysaid “requires enormous amounts of time, human resources, andexcellent market timing.”

For more information concerning ADMAX or the online auction, seethe company’s web site at www.admax.com, or call John Walker at(888) 299-6898.

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