Capping off its first full year of offering energy products and services successfully, Tractebel Energy Services Inc. (TES), the retail energy subsidiary of Tractebel North America Inc., said it now plans to expand its retail product offering in the future to include natural gas and information-based services and will continue to enter newly deregulated states where opportunities exist to meet customer needs in the commercial and industrial energy sector.

Based in Houston, TX, TES offers customers products and services that allow them to establish long-term energy budget management strategies with specific cost control and risk management measures in place. Currently licensed to sell electricity to commercial and industrial customers in five U.S. states, the company said it has enjoyed rapid growth in the U.S.commercial and industrial energy sector, notching $500 million in contracts since operations began last year.

Exceeding first-year expectations, TES said the contracts it has done since the company’s September 2002 inception represent more than 1,200 MW and 2,500 customer accounts. The company serves as Tractebel’s vehicle to provide end-user electricity and related energy services and products. TES began serving its first customers in December 2002 and has steadily gained market share in four of the states where it is operating: Massachusetts, New Jersey, New York, and Texas.

“Our confidence that we could succeed in a highly competitive arena is based on our fundamental belief in the deregulation model combined with superior customer service,” said Zin Smati, CEO of TES. “Competition is the basis of our free enterprise system and it is a proven formula that works. Competition — and therefore, deregulation — drives down costs, inspires innovation, and ultimately spurs economic growth. With deregulation, customers have the opportunity to choose their energy provider and the specific products and services that will best allow them to control their budgets and manage their risks.”

The company received its license to sell electricity in New Jersey on Aug. 6, 2003. “With the expiration of New Jersey’s bundled energy price cap, which had been in effect for the past five years, more than 1,700 large commercial and industrial users are dealing with market uncertainty, including exposure to hourly volatility of electricity prices,” TES said. “However, deregulation, when managed properly, can provide a real opportunity for lowering electricity costs as well as gaining access to innovative services.”

Customers include hospitals, hotels, colleges and universities, industrial and manufacturing facilities, supermarkets and chain stores, and large residential buildings. The company attributes its success on its ability to provide customers with innovative products and services designed specifically to help them control their energy budgets and minimize risks.

“We have gained insight into a large variety of industrial and services businesses around the world, in all types of markets, particularly in the U.S.,” said Dirk Beeuwsaeert, CEO of Tractebel Electricity & Gas International. “Our decision last year to launch Tractebel Energy Services was based on our desire to extend this experience to a broader range of customers and subsequently to a broader range of products and services to help industrial and commercial customers better manage their energy costs. Our success in 2003 is a strong indicator that customers want and need what we are offering and we have every reason to believe that Tractebel Energy Services will experience an equally successful second year of operations.”

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