Peoples Energy Services has purchased the Midwest portfolio ofKN Energy subsidiary mc2 for an undisclosed sum. The transactionincludes 8,000 gas contracts, inventories and related receivables,increasing PE Services’ customer base to more than 20,000 Chicagoarea businesses, the largest of any supplier in the Chicago market,the company said.

“We choose Peoples Energy Services because we believe it willprovide superior service to mc2 customers, it offered a fair pricefor the business and we have a strong, long-standing relationshipbetween the two companies,” said Mort Aaronson, president and COOof KN Services and en*able. KN selected PE Services as the buyerfollowing a process that began in late May.

KN made a decision earlier this year to discontinue its mc2retail energy marketing unit, which was acquired when KN purchasedMidCon Corp. KN said mc2’s business strategy clashed with that ofKN Services and en-able, KN’s retail energy marketing and servicesjoint venture with PacifiCorp.

“The approach of mc2 was to build market share through directbranded sales to commercial customers, and to sell energy in themost attractive commercial markets regardless of geographiclocation. This conflicts with KN’s highly successful marketingphilosophy, which is to approach this business through partnerships[with utilities] and to concentrate marketing efforts within KN’sasset base region,” the company said in a statement at the time.

To insure a seamless integration, PE Services mailed informationletters to each of its new customers and set up an informationhotline at 888-896-0842 to handle customer questions. “Since wealready service 12,000 customers in this market, our systems andprocedures already in place should provide a smooth transition,”said PE Services President Michael Rumman. Peoples Energy Servicesis the nonregulated retail marketing unit of Chicago-based PeoplesEnergy Corp.

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