Enron Signs Energy Service Deal with Eli Lilly

Enron Energy Services (EES) is on the move again, signing its second energy management contract in as many weeks, this time with pharmaceutical company Eli Lilly and Co. The $1.3 billion agreement will run for the next 15 years.

Under the agreement, EES will manage and supply the electricity and natural gas for Lilly's facilities in Indiana. The contract also includes operations and maintenance on energy assets and related energy infrastructure upgrades that will increase energy efficiency for Eli Lilly.

"Lilly continues to look for ways to operate more effectively and efficiently," said Frank Deane, vice president of biochemical manufacturing at Eli Lilly. "Outsourcing our energy purchasing and operations and maintenance of energy related equipment makes sense in terms of future savings and Lilly's overall strategy to focus on our core business-pharmaceutical research and development. This strategy also allows us to retain all the affected employees and offer them reassignments in areas closer to our core business."

EES recently reported it had entered into a multi-million dollar agreement to manage The Quaker Oats Co.'s energy needs for 10 years (see NGI, Feb. 26).

"Our agreement with Lilly gives the company immediate integration into Enron's extensive buying power and expertise in energy management services, while enabling them to focus on their core competencies," said Jeremy Blachman, COO, global national outsourcing and commodity for EES. "We look forward to being a part of Lilly's continued success."

EES said that the contracts it has signed over the last two years represents a reduction of about 8 billion kWh of electricity and 18 trillion Btu of natural gas consumption between 2000 and 2012. Alex Steis

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