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Duke Tackles Retail through Alliance with United

July 13, 1998
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Duke Tackles Retail through Alliance with United

Duke Energy Trading and Marketing, L.L.C. (DETM) continued its strategy of allying with local direct marketing and energy companies as a way of tackling the retail market by entering into an energy management and marketing agreement with United Gas Management of Pittsburgh. DETM plans to support United in aggregating residential natural gas customers in selected areas of the country.

DETM, which is 60% owned by Duke Energy and 40% by Mobil Corp., will manage the supply, storage and transportation of natural gas on behalf of United in the United States. Last month, the company formed an alliance with Orlando, FL-based Enviro-Check to sell gas and energy services to the multi-family housing (MFH) industry. DETM markets natural gas and electric power and provides comprehensive related services, including risk management and total energy management throughout North America. But earlier this year the company decided a direct entrance into the retail market was not the way to go.

DETM found that an energy management and marketing alliance is a more effective approach to entering new, small end-user markets, said Kevin Howell, DETM senior vice president. "This alliance is a strong entry into the residential gas market where DETM will be providing natural gas for homeowners through United's direct marketing."

United President Paul Woods said the DETM alliance will give his company a boost in retail markets nationwide. "Not only will we have full access to buying long-term gas and managing our gas supply as efficiently as possible, but the alliance with Duke Energy and Mobil will be invaluable in attracting new residential accounts."

United Gas Management Inc. of Pittsburgh, Pa., is a privately-held natural gas retailer currently serving an estimated 50,000 customers in Ohio and Pennsylvania. Through United Energy Management Inc., its wholly-owned subsidiary based in Daly City, CA, it also offers combined natural gas and electricity supply services to residential and small commercial customers in the western United States.

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