Peoples Energy Buys mc2 Retail Portfolio
Peoples Energy Services has purchased the Midwest portfolio of
KN Energy subsidiary mc2 for an undisclosed sum. The transaction
includes 8,000 gas contracts, storage inventories and related
receivables, increasing PE Services' customer base to more than
20,000 Chicago area businesses, the largest of any supplier in the
Chicago market, the company said.
"We chose Peoples Energy Services because we believe it will
provide superior service to mc2 customers, it offered a fair price
for the business, and we have a strong, long-standing relationship
between the two companies," said Mort Aaronson, president and COO
of KN Services and en*able. KN selected PE Services as the buyer
following a process that began in late May.
KN made a decision earlier this year to discontinue its mc2
retail energy marketing unit, which was acquired when KN purchased
MidCon Corp. KN said mc2's business strategy clashed with that of
KN Services and en-able, KN's retail energy marketing and services
joint venture with PacifiCorp.
"The approach of mc2 was to build market share through direct
branded sales to commercial customers, and to sell energy in the
most attractive commercial markets regardless of geographic
location. This conflicts with KN's highly successful marketing
philosophy, which is to approach this business through partnerships
[with utilities] and to concentrate marketing efforts within KN's
asset base region," the company said in a statement at the time.
To ensure a seamless integration, PE Services mailed information
letters to each of its new customers and set up an information
hotline at 888-896-0842 to handle customer questions. "Since we
already service 12,000 customers in this market, our systems and
procedures already in place should provide a smooth transition,"
said PE Services President Michael Rumman. Peoples Energy Services
is the nonregulated retail marketing unit of Chicago-based Peoples
©Copyright 1998 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.