A multi-year alliance will give Constellation Power Source the right to manage the Texas power resource needs for TNP Enterprises Inc.’s Texas-New Mexico Power Co. (TNMP) and First Choice Power under an agreement announced Wednesday. The Constellation Energy Group unit will manage about 1,100 MW under an agreement made through a competitive selection process begun by TNP last October. No financial details were disclosed.

First Choice Power is TNMP’s competitive affiliate that will begin serving customers in Texas’ electric market when it opens to competition in January 2002. The company also will serve customers during the pilot program that kicks off in July.

Under the alliance agreement, Constellation will serve as TNMP’s Qualified Scheduling Entity, manage all of TNMP’s generation assets, including TNP One and existing supply contracts for Texas, and provide energy requirements for TNMP’s existing ERCOT load. Along with serving TNMP’s existing load, Constellation also will serve as a pricing desk to provide flexible pricing structures to support First Choice Power’s retail expansion.

“First Choice Power’s strategy is to focus on its existing brand equity and its strong customer relationships,” said TNP Enterprises CEO William J. Catacosinos. “This alliance is a critical part of that strategy because it allows us to focus our resources on what we do best, while ensuring a dependable, cost-effective power supply for our customers.”

Constellation Energy Group CEO Charles W. Shivery called the alliance a “natural fit” with Constellation’s business in Texas. “It reinforces our belief that competition in Texas will create new commercial alignments that capitalize on individual companies’ competitive strengths.”

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.