Cinergy Restructures; Plans 330 MW Project
As the nation continues to creep warily forward into natural gas
and electricity deregulation on all fronts, Cinergy Corp.
understands that in order to take advantage of the full potential
of its companies it must change as well. The company announced
yesterday that it is embracing a new organizational structure that
will increase the autonomy of its subsidiaries and focus on the
growing importance of non-regulated markets.
The new structure contains three business units: Energy
Merchant; Regulated Businesses; and Power Technology and
Infrastructure Services. Each unit will have a CEO who will be
responsible for developing a vision and setting strategic direction
and goals, and a president who will be responsible for executing
each unit's business plan.
"Today, about 50% of our earnings come from non-regulated
markets, a dramatic change from five years ago when nearly all of
our earnings came from our regulated business," said James E.
Rogers, CEO of Cinergy. "Our new organization more clearly defines
the regulated and unregulated businesses, while providing platforms
for future growth."
The Energy Merchant business, which will operate power plants
and be responsible for all wholesale energy marketing, trading and
risk management, will be headed by recently appointed CEO Michael
J. Cyrus. William J. Grealis has been named CEO of the Regulated
Businesses unit, which operates all gas and electric transmission
and distribution services.
The unit will also manage the regulated businesses of PSI
Energy, The Cincinnati Gas & Electric Co. and the Union Light,
Heat and Power Co. Larry E. Thomas has been appointed CEO of Power
Technology and Infrastructure Services, which will manage a
portfolio of emerging energy businesses.
Cinergy also announced that its affiliate, Cinergy Capital &
Trading, is in the process of evaluating a project that would add
330 MW to the Midwest region during peak energy usage periods. The
four natural gas-fired turbines would be installed in Levan
Township near Oraville, IL.
"We are very interested in the Levan Township location as a
potential site," said Art Vivar, vice president of business
development for Cinergy Capital & Trading. "With the very tight
supply of electricity at times of peak use in the Midwest, these
units would provide an additional source of clean energy to
maintain reliable electric service in the region."
The unregulated affiliate, which is part of the Energy Merchant
segment, estimates the project would cost between $150-to-$180
million, with construction beginning during the fall of 2002.
Pending environmental approvals and construction permits, the
company said it expects to have work completed by summer of 2003.
©Copyright 2001 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.