Marking the continuation of a successful 1999 strategy, EnronEnergy Services (EES), a subsidiary of Enron Corp., announcedyesterday it has signed the Chase Manhattan Corp. to a 10-year,$750 million energy management agreement.
Enron will provide energy management services for 860 of Chase’sfacilities nationwide, including office buildings, retail branchesand operations centers. As part of this agreement, Enron willprovide commodity management, including analysis and consolidationof 30,000 annual utility invoices currently processed throughmultiple operating groups, as well as overall project managementfor energy infrastructure upgrades, designed to make materialimprovements in the energy efficiency of many Chase facilities.
“Our agreement effectively takes Chase out of the energymanagement business and enables them to focus more time andresources on growing their successful financial services business,”said Lou Pai, CEO of EES.
During 1999, EES entered into contracts representing $8.5billion of customers’ future expenditures for gas, power and energyservices, more than double the $3.8 billion contracted in 1998.”Our retail business is now profitable. This business has reachedcritical mass in contracting activity and service capabilities, andprofitability is expected to accelerate rapidly,” Kenneth Lay,Enron CEO said recently.
Deals on the scale of this Chase agreement are not uncommon. Lastfall, the Enron subsidiary signed Owens Corning to a 10-year $1billion contract. Over the summer, EES also inked two other largecontracts: one with Suiza Food Corp. and the other with Packaged IceInc. (see Daily GPI, July 14).
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