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Enron allows plastics and petrochemicals companies to outsource their entire utility operations including natural gas, power, steam, water, and conditioned air. In the outsourcing transaction, Enron becomes a company's internal utility provider and is responsible for operations, maintenance, and efficiency improvement of all of the utility assets. This responsibility can include monetization of existing energy assets as well as ongoing investment in energy efficiency improvement.
In this way, outsourcing helps customers allocate scarce capital from low return utility projects to higher return capacity improvement projects.
Outsourcing also allows customers to manage commodity price risk in several ways. For example, Enron can swap floating for fixed utility prices to eliminate volatility entirely, or Enron can cap utility prices, to allow customer participation in any future price decreases.
Outsourcing also allows customers to manage regulatory risk during the unpredictable period while state by state deregulation occurs.
Enron is able to integrate our price risk management, trading, outsourcing, and financing capabilities into a solution that will help petrochemical and plastics companies smooth their revenues, protect their profits, lower their cost of capital, and ultimately improve critical performance ratios.
For more information about utility outsourcing, visit www.ees.enron.com.
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