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Commerce Energy Acquires C/I Customers, Triples Gas Sales
Costa Mesa, CA-based Commerce Energy Group Inc. announced Monday it has closed a $4 million acquisition of 300 commercial/industrial (C/I) natural gas customer accounts from Houston Energy Services Co. (HESCO). The customers have accounts in five states — California, Florida, Nevada, Kentucky and Texas — with an estimated collective load of 12 Bcf/year, effectively tripling Commerce’s natural gas sales volumes.
As part of the purchase, Commerce Energy concurrently finalized an agreement for a “multi-year, strategic supply relationship” with Sumitomo Corp.’s Newport Beach, CA-based subsidiary Pacific Summit Energy, LLC to become the exclusive supplier of natural gas for the acquired C/I customers. Pacific Summit is Commerce’s current gas supplier, and is a leading integrated trading and investing firm and a major distributor of energy commodities.
In addition, Commerce Energy signed an agreement with Houston, TX-based Advanta Energy Corp. to provide marketing services to the existing and acquired C/I customer segment as well as expanding that segment in the future.
Commerce CEO Steve Boss called the latest purchase “an excellent fit” with key elements of the energy service provider’s plan to grow the size of its customer portfolio “significantly” through both organic growth and acquisitions. It also intends to deliver on its energy supply needs through agreements with strategic wholesale supply partners.
“In addition to significantly expanding our commercial customer base, we expect this transaction to triple the size of our natural gas sales volumes, increasing our annual natural gas revenues nearly $100 million,” said Boss, adding that the purchased contracts will be “immediately accretive” to Commerce’s fiscal 2007 operating results.
Commerce Energy is an electricity/natural gas marketer, operating through wholly owned subsidiaries Commerce Energy Inc. and Skipping Stone Inc. Commerce Energy operates in 12 states and serves 140,000 customers, and Skipping Stone is an energy consulting firm serving utilities, pipelines and merchant trading/technology companies.
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