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ENRON AND SAN FRANCISCO GIANTS SIGN LONG-TERM COMMODITY, FACILITIES MANAGEMENT AGREEMENTS FOR PACIFIC BELL PARK
FOR IMMEDIATE RELEASE: Thursday, December 3, 1998
HOUSTON - Enron Energy Services, Inc., a subsidiary of Enron Corp., announced today it will become the exclusive provider of electricity and energy and facilities management services for the San Francisco Giants through a 10-year energy commodity agreement and a 15-year management contract for Pacific Bell Park.
Through these two contracts, totaling more than $60 million, Enron Energy Services will provide the electricity to operate Pacific Bell Park, as well as services for heating, ventilation and air conditioning and administration of various subcontracts for maintenance of all mechanical and electrical equipment.
Enron Energy Services also will provide the Giants with capital to purchase equipment needed to operate the stadium and, through fixed price contracts, will provide risk management services related to managing volatility of long-term stadium operating costs.
"These agreements capture our core competency - the integration of commodity, capital and energy and facilities management services - and exemplify the tremendous value we can bring to sports facilities as their full-service energy and facility management provider," said Lou L. Pai, chairman and CEO of Enron Energy Services. "This comprehensive relationship with the Giants further confirms our commitment to the California market and is the first to take advantage of our full range of capabilities, including facility management services which we have been building as part of our overall strategy for Enron Energy Services."
"Our partnership with Enron Energy Services is a critical component of our program to privately construct Pacific Bell Park and efficiently manage the new facility," said Larry Baer, Giants executive vice president and chief operating officer. "We also share a similar vision of making Pacific Bell Park a facility that is enjoyed by the community year-round and look forward to working with Enron to achieve this important goal."
Pacific Bell Park is the first privately financed major league ballpark built in more than 30 years. Enron Energy Services joins several other distinguished U.S. corporations that have become Winners Circle Sponsors by partnering with the Giants to build the stadium. These include Pacific Bell, Anheuser Busch, Chevron, The Coca-Cola Company and CHW Bay Area. As the exclusive sponsor in the energy category, Enron Energy Services will have signage and promotional rights at the new ballpark.
Construction of Pacific Bell Park is scheduled to be completed in April 2000. The Enron Energy Services contracts will become effective in early 1999, when the company will support the Giants in commissioning the systems for the stadium and then provide power once the systems are functional.
Located in San Francisco's China Basin area, the intimate 42,000-seat ballpark incorporates the style and ambiance of traditional urban ballparks with state-of-the-art technology. Pacific Bell Park will feature an asymmetrical playing field with a short right field fence (306 feet) enabling homeruns to land in the San Francisco Bay, as well as year-round children's attractions, specialty food restaurants, retail outlets and a waterfront promenade which will allow fans to view the game at no cost through open archways in the right field fence.
Enron is one of the world's leading integrated natural gas and electricity companies. The company owns approximately $30 billion in assets, produces electricity and natural gas, develops, constructs and operates energy and water facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Peggy Mahoney - Enron Energy Services
(713) 345-7034
Staci Walters Slaughter - SF Giants
(415) 330-2714
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