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EnergyGateway.com Delivers Savings, Says P&G

EnergyGateway.com Delivers Savings, Says P&G

After five months of use and $100 million in gas purchases, Procter & Gamble (P&G) concluded EnergyGateway.com's natural gas marketplace works like charm.

"EnergyGateway.com brings together a large number of buyers and sellers providing a competitive market environment that has delivered significant savings for Procter & Gamble," said Michele Kidd, North American energy purchasing group manager.

The exchange, which went live in September 1999 and fired up its gas marketplace in November 1999, claims to be the biggest transaction site for large commercial and industrial energy customers, as well as utilities and producers. The system allows a business to post its needs, then choose from among the bids it receives from suppliers. Fees are charged only on successful transactions, and suppliers also can sell to other suppliers.

"By streamlining the procurement process online, Procter & Gamble is reaping benefits in the form of true savings and the freedom to focus on more strategic value-added duties," said Dan Pugh, director of major accounts at EnergyGateway.com.

F. Daniel Ryan, EnergyGateway's president and co-founder said the electric marketplace has just recently started signing people on, but the natural gas marketplace has "51 of the largest natural gas suppliers in the country, and a number of them are already electricity providers. So we are transitioning the providers over to the electricity marketplace and adding our consumers to the electricity marketplace." Ryan pointed out that electricity deregulation's slow growth is limiting the areas his electricity platform can serve.

Procter & Gamble's praise comes on the heels of EnergyGateway's October deal with Cargill Inc., an international marketer, processor and distributor of agricultural, food, financial and industrial products and services. Initially, Cargill intends to spend $55 million buying gas on EnergyGateway.com, but in the future it could extend its usage to cover all of the company's $500 million natural gas and electricity needs.

"We selected EnergyGateway because it is the first company to blend proven energy transaction expertise with the ease, flexibility, convenience and control of e-commerce," said J.F. Muse, a spokesman for Cargill. Alex Steis

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