Aquila Inc. has agreed to end a long-term relationship with natural gas and power marketer ACN Energy, in which Aquila Merchant Services Inc. provided supply, trade finance, market guarantees, loans and associated services in exchange for fees and liens on ACN Energy assets.

Although the agreement’s specifics were not disclosed, ACN Energy said it had satisfied the loans, replaced Aquila’s market guarantees and procured gas and electric supplies from new counterparties, which in effect, replaced or satisfied all of the elements of the original contract. In exchange, Aquila has released all of its liens and security interests in ACN Energy. ACN Energy retained Skipping Stone Inc. to negotiate the Aquila agreements as well as negotiate replacement strategic finance and supplier arrangements for the 9 Bcf and 135 MW consumed annually by ACN retail customers.

“While we have enjoyed our relationship with Aquila, we are pleased to have amicably finalized our agreements,” said ACN CEO John Huffman. “The resulting impact on our balance sheet is significantly positive and continues to reflect the overall financial health of ACN Energy.”

Specifics of the agreement will remain confidential, said parent company ACN Inc. ACN Energy serves mass-market customers in 14 utility service areas with both natural gas and power. ACN, a privately held customer acquisition company, is headquartered in Farmington Hills, MI. and has operations in 11 countries throughout North America and Europe.

In other news, Aquila subsidiary Everest Connections Inc. has stopped its expansion plans, effective Jan. 31. The company, which offers Kansas City residents another choice for cable, Internet and telephone service, said it would continue to serve its 20,000 customers, but said that plans to build a larger network were being stopped. The expansion halt was accompanied by the resignation of Kevin Anderson, who was Everest’s president.

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