Enron Turns Energy into Oatmeal
Energy management contracts continue to pop up in the strangest
places, as Enron Energy Services (EES) found in taking over the
energy needs of the Quaker Oats Co. The deal announced last week
covers 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 electricity
and natural gas while providing operations and maintenance on
energy assets. The contract also includes energy related
infrastructure upgrades that will increase energy efficiency in
The 15 U.S. facilities are located in 11 states across the
nation, with an additional two plants located in Canada.
"Outsourcing energy management to Enron Energy Services enables
us to continue our cycle of reinvestment and pursue future savings
opportunities," said Russ Young, senior vice president, supply
chain for Quaker.
"As one of the leading food and beverage packaging companies in
the United States, Quaker's decision to outsource energy management
continues to distinguish them as an industry leader," said Jeremy
Blachman, chief operating officer of Enron Energy Services North
America. "Furthermore, Quaker will see that the competitive
advantage of their business strategy is significantly enhanced by
the addition of our expertise in energy efficiency and risk
Currently, EES manages energy for an array of customers at more
than 28,500 customer sites. Enron estimates that its energy service
contracts signed over the last two years represent a reduction of
approximately eight billion kWh of electricity usage and 18
trillion Btu of natural gas consumption between 2000 and 2012.
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