Continuing its pile-up of large energy management deals, EnronEnergy Services (EES) announced a 10-year, $1 billion energyoutsourcing agreement with Owens Corning yesterday. Enron’sservices will cover 20 of the glass and composite materialmanufacturer’s major facilities located throughout the UnitedStates. Management services began when the contract was announced.

Through the agreement with Owens Corning, Enron said it willsupply or manage all energy commodity requirements includingelectricity and natural gas. It will also mitigate risks of pricevolatility and design, build and finance certain energyinfrastructure projects.

Glen Hiner, CEO of Owens Corning said, “We have selected Enronbecause they can address the volatility we are facing nationwide,and also provide the capital necessary to further drive down ourenergy consumption and costs.”

This is the Toledo, OH-based manufacturer’s first energymanagement deal. There was no bidding process for these services,and Tricia Ingraham, a company spokesperson, said Owens Corningapproached Enron about a possible deal. “We heard about what Enronwas doing with other companies and decided that they would fit ourneeds.” Although the 20 plants are located throughout the country,many of them are located in the Carolinas, Ingraham added.

For the Enron Corp. subsidiary, the agreement demonstrates itseffective presence as a national full-service energy servicescompany. “Enron’s ability to provide nationwide energy price riskmanagement, construction management for energy related assets, aswell as furnish capital, uniquely positions us to reduce OwensCorning’s energy costs in a deregulating market,” said Lou Pai, CEOof EES.

The Enron subsidiary has been one of the most successful players inthe energy management contract arena, contacting over $1.7 billionworth of deals in 2Q99. For the year, the company’s goal is to doubleits 1998 performance of $3.8 billion worth of managementcontracts. Over the summer, EES inked two other large outsourcingcontracts: one with Suiza Food Corp. and the other with Packaged IceInc. (see Daily GPI, July 14).

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