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 Quaker's facilities.

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 management."

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.

Alex Steis

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