Expanding its fast-growing sphere of influence within theindustry, EnronOnline, the Internet-based wholesale energytransaction platform sponsored by Enron, announced that it willhold the country’s first online sulfur dioxide (SO2) emissionsallowance auction from March 13-16.

During the auction period, users will be able to place onlineorders, free of charge, for the purchase or sale of SO2 allowances.These allowances let power generators exceed Clean Air Actemissions standards. Enron will sell a minimum of 15,000 allowancesduring the auction, subject to the online reservation price.Enron’s auctions for SO2 emissions allowances will be held on amonthly basis. Enron will not sell any of the credits, said ShellyMansfield, an Enron spokesperson. It is just creating the openforum from which these credits can be bought and sold she added.

“Using the EnronOnline platform to offer auction capabilitieswill help increase liquidity in the SO2 allowances market,” saidGreg Woulfe, director of emissions trading at Enron North America.”The online auction system is efficient and convenient forcustomers and provides the advantage of a streamlined transactionprocess.”

Although this auction will be the first one EnronOnline willhold in the U.S., the company is not a stranger to the procedure.Enron successfully launched its online auction system in the UKwhen it ran its second annual natural gas storage auction, EnBank,via the EnronOnline website. The first round of online biddingended with the completion of several long-term storage contracts,the company said.

Mansfield said this marks the next stage of the rapid growthexperienced by the Internet trading platform. “[EnronOnline] iswidely used, and growing every day,” she said. “Especially the gasside. That is very liquid.” She did not, however disclose anyvolumes or monetary amounts except for the fact that more than25,000 total transactions have been completed via EnronOnline sinceits inception in November 1999.

The platform’s surge coincides with general consolidation in theInternet-based energy trading platform industry. Last week,Houston-based Amerex Natural Gas Inc. and sister company Amerex PowerInc. together bought the gas and electricity brokerage businesses ofHouston-based BTU Brokers Ltd. for an undisclosed price (see DailyGPI, Feb. 29). Last year, Altra, one ofthe industry’s biggest players, purchased three different onlinebrokerage firms, including its chief competitor, Quicktrade (see DailyGPI, June 29).

One gas marketer, who wished to remain anonymous, saidEnronOnline is highly preferable over the other choices.”[EnronOnline] is feeless, the bid-asks are more in tune with themarket, and the people operating the system actually have a stakein the industry. Altrade doesn’t offer that. Altrade is purely abrokerage service. Enron, however, is also a player in theindustry. I have an automatic relationship with them, and that hashelped out numerous times. Personally, I think Altrade is introuble.”

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