Convergence of gas and electricity is no longer a trend on thehorizon but rather the law of the land. Anyone doubting this needonly look at who the big players are in both commodities, notedKenneth D. Rice, CEO of Enron Capital & Trade Resources (ECT).

“Although there have been over 500 applications and certificatesfor power marketers, only six power marketers last year sold morethan 50 million MWh. Virtually all of those, I think, all of thosesix except one was also one of the top-10 gas marketers in thecountry. So what that tells me is it’s not an easy thing to getinto this business. Just because you’ve got a power marketingcertificate doesn’t mean you’re in the business. Just because yousay you’re selling power doesn’t make you competitive. What thistells me is people that are competitive, businesses that arecompetitive, are the ones that understand both gas and electricityand are big players in those markets,” Rice told attendees atEnergy & Power Risk Management’s Power ’98 conference inHouston Wednesday.

Top gas marketers in 1993 were Enron, Amoco, Western Gas,Tenneco, and Natural Gas Clearinghouse, Rice noted. Today thatranking is Enron, Dynegy (formerly NGC), Engage Energy, El PasoEnergy, and Duke. “So we’ve had a lot of consolidation in thisbusiness, but virtually everybody who’s a leader today was also aleader five or six years ago.”

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