Energy management contracts continue to pop up in the strangestplaces, as Enron Energy Services (EES) found in taking over theenergy needs of the Quaker Oats Co. The deal announced last weekcovers 17 of the company’s packaged food and beverage facilities.Enron said the multi-million dollar deal is good for 10 years.

Under the agreement, Enron will manage the supply of electricityand natural gas while providing operations and maintenance onenergy assets. The contract also includes energy relatedinfrastructure upgrades that will increase energy efficiency inQuaker’s facilities.

The 15 U.S. facilities are located in 11 states across thenation, with an additional two plants located in Canada.

“Outsourcing energy management to Enron Energy Services enablesus to continue our cycle of reinvestment and pursue future savingsopportunities,” said Russ Young, senior vice president, supplychain for Quaker.

“As one of the leading food and beverage packaging companies inthe United States, Quaker’s decision to outsource energy managementcontinues to distinguish them as an industry leader,” said JeremyBlachman, chief operating officer of Enron Energy Services NorthAmerica. “Furthermore, Quaker will see that the competitiveadvantage of their business strategy is significantly enhanced bythe addition of our expertise in energy efficiency and riskmanagement.”

Currently, EES manages energy for an array of customers at morethan 28,500 customer sites. Enron estimates that its energy servicecontracts signed over the last two years represent a reduction ofapproximately eight billion kWh of electricity usage and 18trillion Btu of natural gas consumption between 2000 and 2012.

Alex Steis

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