Noco Energy Sells Stake in Gas Marketing Firm
Posted on: Wednesday, 10 May 2006, 12:07 CDT
By David Robinson, The Buffalo News, N.Y.
May 10--Constellation NewEnergy has acquired Noco Energy's 50 percent stake in its Noco Energy Marketing business, giving the Baltimore-based energy services company a stable of about 300 commercial and industrial customers in the region.
Constellation NewEnergy paid $10 million to acquire the stake in Noco Energy Marketing, which has seven employees, including six in Western New York and one in Pennsylvania.
"It fits in very well with our growing business in upstate New York," said Larry McDonnell, a Constellation NewEnergy spokesman. "This adds to, and helps us grow, our supply business in this region."
Michael Newman, Noco's executive vice president, said the sale signals a shift away from the large commercial and industrial customers that made up the bulk of the energy marketing business' sales, but does not diminish Noco's interest in offering natural gas services to smaller commercial and residential customers.
"We're going to continue to evolve this business-to-consumer model," Newman said.
Ultimately, Newman said he would like to see Noco's energy marketing business evolve to the point where consumers could walk into one of Noco's convenience stores and also be able to sign up for natural gas service.
The other half of the business is owned by MW Energy, a partnership that includes Gary Marchiori and Tim Wright, who have run the energy marketing business under a variety of owners, beginning from Texaco to Dynegy to Noco.
The acquisition will allow Constellation NewEnergy to add natural gas supply services to the consulting and energy management services it already offers in the region, McDonnell said. The acquisition brings Constellation NewEnergy a customer base that uses about 20 billion cubic feet of natural gas a year.
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CEG, DYN,
Source: The Buffalo News
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