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Cinergy Consolidates ProEnergy Purchase

Cinergy Consolidates ProEnergy Purchase

Cinergy Corp. has moved to integrate its purchase of Producers Energy Marketing, LLC (ProEnergy) with its own commodity marketing operation, cutting some ProEnergy executives and planning the integration of its smaller Houston office into the larger ProEnergy facilities in Houston.

A Cinergy spokesman confirmed the company had cut five "upper management" positions. NGI has learned from sources the personnel cut included ProEnergy's president and two marketing vice presidents, the supply vice president and the chief financial officer. The spokesman would not confirm the titles nor supply names. Questioned as to whether there would be other cuts, he said only that the company was continuing an evaluation of the entire organization. Another company spokesman said he knew of no specific plans at this point.

Changes have been expected since Cinergy, based in Ohio and the parent of Cincinnati Gas &amp Electric, purchased the ProEnergy wholesale gas marketing firm last June, saying it would make a good fit with Cinergy's wholesale electric marketing business. Cinergy bought the firm from owners Oryx Energy and Apache Corp. for $42 million. It also signed a 10-year alliance with the producers to market their entire gas supply of about 1.1 Bcf/d. The new trading unit, Cinergy Capital and Trading, is headed by Madeleine W. Ludlow, president, and Michael J. Cyrus, executive vice president.

Ellen Beswick

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