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Holy Cranberries! Two More EES Deals

March 15, 1999
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Holy Cranberries! Two More EES Deals

Enron Energy Services proved energy management services appeal to Catholic clerics as well as cranberry growers while adding two deals to its parcel of contracts. Last week EES announced deals with the Archdiocese of Chicago and Ocean Spray Cranberries Inc.

EES and Ocean Spray made a $116 million long-term agreement for total energy management services intended to save Ocean Spray millions of dollars at its domestic manufacturing and distribution facilities.

Throughout the 10-year agreement, Enron will fund infrastructure improvements, optimize contracts, supply gas and power, manage energy information systems such as meters, and act as consultant on opportunities such as cogeneration. "Enron Energy Services will reduce Ocean Spray's total energy and facility management costs by investing capital and management expertise in all aspects of the energy supply chain," said Lou Pai, CEO of Houston-based Enron Energy Services (EES).

"We free up our employees to focus on our own core processes and products," said Kevin Murphy, Ocean Spray CEO. "We reduce our impact on the environment through lower fuel and electricity consumption, and we save millions of dollars over the life of the contract."

Ocean Spray, headquartered in Lakeville, MA, is a leading producer of canned and bottled juices and juice drinks with annual sales of nearly $1.5 billion. A marketing cooperative, Ocean Spray is owned by 950 cranberry and citrus growers in the United States and Canada.

Also, EES made a seven-year energy management deal with the Archdiocese of Chicago, the second largest diocese in the United States. The deal is worth $246 million and involves 2,000 Archdiocese facilities. Enron will provide energy-related savings by upgrading and replacing, where needed, the Archdiocese's energy equipment such as boilers, chillers and lighting fixtures; by supplying gas; and by providing other energy management services including consolidated billing and contract optimization. In addition, during the next two years, Enron will conduct energy audits to decrease energy usage at Archdiocese facilities.

"Enron has had a successful partnership with the Archdiocese of Chicago for more than 11 years, saving them nearly $1 million per year on natural gas consumption," Pai said. The Archdiocese of Chicago serves about 2.3 million Catholics in Cook and Lake counties in northeastern Illinois.

Joe Fisher, Houston

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