EES Contracts with Two National Retailers
Enron Energy Services (EES) continued on its quick pace of business in 2001 as it reported that it has entered into two long-term agreements to manage energy supplies with large retailers last week. EES will manage the energy needs for all of Saks Inc.'s store locations, distribution facilities and administrative offices in 39 states. EES also teamed with J.C. Penney Co. to cover the acquisition of about $600 million in energy-related commodities for its retail locations. Terms of the Saks deal were not disclosed.
"By outsourcing the management of its electricity and natural gas supply to Enron, Saks is significantly protected from energy price uncertainty and volatility, particularly in California and New York," stated David Delainey, CEO of EES.
Under Enron's JC Penney contract, the company will manage the supply of electricity at more than 1,250 store locations in 50 states, as well as replace or update energy equipment to reduce consumption and create additional savings for the retail merchant.
These service agreements mark the fourth and fifth contract EES has entered into in the last three months. The company already this year has added glass manufacturer Pilkington North America Inc., Quaker Oats Co. and Eli Lilly and Co. to its ranks of customers(see NGI, Jan. 22; Feb. 26; March 5).
Enron's EES subsidiary currently manages energy at more than 28,500 customer sites. Contracts signed within the last two years represent a reduction of approximately 8 billion kWh of electricity consumption and 18 trillion Btus of natural gas consumption between 2000 and 2012, the company said.
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