Enron Energy Services is on track to double its energymanagement agreements this year, announcing yesterday it had signeda 10-year agreement with Prudential Insurance of America. Termscall for Enron to supply or manage the supply of electricity andnatural gas, and provide related energy management services forPrudential’s 21 corporate-owned office buildings in Arizona,Connecticut, Florida, Illinois, Minnesota, New Jersey andPennsylvania.

The two also agreed to work on energy efficiency projects toprovide more economic and environmental benefits at selectedPrudential facilities across the country.

“Our partnership with Enron will enable Prudential to take fulladvantage of leading-edge energy management solutions, which willresult in immediate cost savings and significantly reduce ourexposure to future rate fluctuations,” said Victor Castellano, vicepresident of Business Services at Prudential. “We look forward topartnership with Enron to develop additional energy conservationand cost reduction projects and strategies.”

Enron Energy Services’ Peggy Mahoney said the agreement puts hercompany on track to reach nearly $16 billion in energy marketingagreements this year, nearly double 1999’s total of $8.5 billion.That’s up from $3.8 billion in energy agreements in 1998.

Prudential has increasingly pursued outsourcing arrangementsthat enable it to focus more fully on its core businesses ininsurance, investments and asset management. Along with energymanagement, Prudential outsources other major services includingproperty management, food services, travel, architectural andengineering.

“As one of the first in the insurance industry to outsourceenergy management, Prudential’s agreement with Enron reflects itsability to quickly adapt to today’s rapidly changing energymarketplace,” said Lou L. Pai, chairman and CEO of Enron EnergyServices. “As deregulation continues to unfold across the country,we are committed to keeping Prudential ahead of the curve.”

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.