The Internet e-commerce bandwagon rolled on yesterday with 15more riders. A consortium of 15 US electric and gas companies plansto launch an Internet marketplace for the energy industry and itssuppliers. The companies include American Electric Power, Cinergy,Consolidated Edison Inc., Duke Energy, Edison International,Entergy, FirstEnergy Corp., FPL Group, PG&E Corp., PublicService Enterprise Group, Reliant Energy, Sempra Energy, SouthernCompany, TXU and Unicom.

“We see this investment as a way to take advantage of thebusiness-to-business marketplace evolving rapidly via theInternet,” said Paul Bowers, Southern Company chief marketingofficer. “The open technology framework and increased efficienciesthat will evolve will benefit our company. This is the premierplatform for business transactions and the opportunities forprocurement are overwhelming.”

The business-to-business exchange will operate as a singleglobal portal for purchasing anything from transformers and wire toturbines and equipment repairs. The for-profit exchange will beopen for use by any company in the energy/utility industry.

By building an online marketplace, the consortium expects togenerate significant benefits for purchasers and suppliers alike bystreamlining purchasing processes, shortening purchase cycles andincreasing accessibility between buyers and sellers. According toForrester Research, utilities are the third largest industry interms of total online business trade.

The consortium expects to establish an independent company byJune to operate the exchange, initially owned by the foundingcompanies.

Initial services will include online proposals, price quotes andauctions. The exchange will be designed to encourage openparticipation. The strong commitment of the companies to supplierdiversity will continue. PricewaterhouseCoopers was chosen to helpdevelop the exchange and select the technology provider.

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