NGI The Weekly Gas Market Report
Sempra Energy has signed a comprehensive multi-million-dollar,five-year deal with Lockheed Martin Corp. to be its exclusiveenergy provider in 26 eastern states. Lockheed Martin expects tofinalize a similar deal for its western facilities with Enron sometime in March, according to Lockheed Martin energy manager SamJohnson.
Through a combination of energy efficiency and waterconservation measures, Sempra estimates it will help cut LockheedMartin’s energy bills a minimum of 17% for its eastern U.S.operations.
Declining to give specific dollar values, Johnson would only saythat Lockheed Martin’s eastern facilities in total representmulti-million-dollar annual natural gas and electricity loads, bothof which will be provided by parts of Sempra Energy’s nonutilityoperations. Estimates indicate there may be as much as $200 millionin retrofit energy systems work at Lockheed’s eastern facilitiesbased on initial audits of 10 locations that have identified $50million in energy system retrofit needs, carrying potential annualsavings of $9 million in energy costs at these facilities alone,according to information released by the two companies.
“We want to split up the work across the country (where Lockheedoperates in every state except North Dakota),” Johnson said. “Wethink this keeps a little competition going.”
“Lockheed Martin’s leadership has paved the way for largecompanies with multiple sites and facilities to benefit from thedramatic changes taking place in the energy industry,” said RichardFarman, chairman and CEO of Sempra, the San Diego-based holdingcompany for San Diego Gas and Electric Co. and Southern CaliforniaGas Co.
Several Sempra officials reiterated that the Lockheed deal is amajor coup for the newly merged company because it is the first onein which all of its combined energy services are being applied to amajor national customer. In addition to buying gas and electricityfor Lockheed, Sempra will provide energy billing and informationmanagement services, energy education and training to Lockheedemployees, energy use and billing analysis, and energy efficiencyretrofitting. The billing and energy management services alone areestimated to cut Lockheed’s energy costs from two to five percent.This is Sempra’s largest energy services deal so far, according tothe $5 billion holding company that includes trading, energyservices and international subsidiaries, in addition to its twolarge utilities.
Richard Nemec, Los Angeles
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