Enron Corp., a provider and marketer of energy in the US, said its Energy Services unit signed a more than US$ 1 billion agreement with Owens Corning Inc. to manage energy needs at 20 of the fibreglas…
Enron Corp., a provider and marketer of energy in the US, said its Energy Services unit signed a more than US$ 1 billion agreement with Owens Corning Inc. to manage energy needs at 20 of the fibreglass maker“s US plants. Under the 10-year deal, Enron Energy Services will manage all Owens Corning“s energy and commodity requirements, including electricity and natural gas and will also design, build and finance certain energy infrastructure projects. Enron will also formulate hedging strategies aimed at reducing Owens Corning“s financial risks associated with price swings in energy markets. “Enron“s ability to provide nationwide energy price risk management, construction management for energy related assets, as well as furnish capital, uniquely positions us to reduce Owens Corning“s energy costs in a deregulating market,” Lou Pai, chief executive of Enron Energy Services, said in a statement. In the same statement, Owens Corning“s top executive, Glen Hiner, said the maker of insulation products has a keen understanding of the importance of trimming energy costs, and chose Enron because of the breadth of Enron“s expertise. “We have selected Enron because they can address the volatility we are facing nationwide, and also provide the capital necessary to further drive down our energy consumption and costs,” Hiner said.