NGI The Weekly Gas Market Report
NGI Archives | Daily GPI | NGI All News Access
Entergy Seeks Help for Wholesale Electric Trading Unit
New Orleans-based Entergy confirmed last week that it has beeninvolved in talks regarding a possible joint venture between itswholesale electricity trading unit, Entergy Wholesale Operations(EWO), and another undisclosed company. Entergy said it hopes tomake an announcement within five weeks. No other details about apossible deal were given.
“This is something that has been going on for a while. But thereports are true. We are looking to help hedge our price risk inthe wholesale electric trading business by creating a jointventure,” said Carol Clawson, an Entergy spokeswoman.
Based in Houston, EWO employs more than 100 people. It has beenoperating for more than three years. In 1999, the unit lost$500,000 in income. Yet, despite its poor financial results, theunit still finished in the top 10 of the power marketer rankings byselling 106.8 MMWh in 1999. That total marks an 8.8 MMWh increaseover 1998’s numbers.
Entergy owns, manages, or invests in power plants generatingnearly 30,000 megawatts of electricity domestically andinternationally and delivers electricity to about 2.5 millioncustomers in portions of Arkansas, Louisiana, Mississippi andTexas.
If the joint venture occurs, it will not be the first majorchange for Entergy’s wholesale team this year. Last January, EWOwas created when Entergy Power Marketing (EPMC) and Entergy PowerGroup (EPG) merged into a single entity. The unit was to be a majorpart of the company’s five-year growth strategy (see Daily GPI,Dec. 7).
©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.
© 2024 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |