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ENRON AND LOCKHEED MARTIN MISSILES & SPACE SIGN AGREEMENT FOR ELECTRICITY AND ENERGY SERVICES PACKAGE
FOR IMMEDIATE RELEASE: Tuesday, May 12, 1998
WALNUT CREEK, Calif. - Enron Energy Services, Inc. (EES), a subsidiary of Enron Corp., announced today that it has signed a four-year agreement to provide an innovative combination of energy and energy services to Lockheed Martin Missiles & Space. Enron will finance, construct, operate and maintain new energy infrastructure for the company, lower Lockheed Martin's electricity costs, and improve reliability in delivery of its electricity supply. Over the four-year period of the contract, Enron will provide electricity valued at $75 million.
"This is a textbook case on how a company can achieve significant benefits from competitively priced electricity and from Enron's well-established engineering, construction and maintenance capabilities," said Lou L. Pai, chairman and CEO of EES. "Not only is Lockheed Martin paying less for electricity, but more importantly, it has taken an innovative approach to realize greater savings through Enron's financing of these new energy assets."
"Enron has provided us a fully integrated energy package including capital, commodity and services," said Joel Suty, vice president of operations for Lockheed Martin Missiles & Space. "Companies are always looking for ways to cut costs, and we're no exception. We will start to see immediate savings without having to pay a dime up front."
This agreement expands an existing relationship between Lockheed Martin and Enron. Lockheed Martin Missiles & Space, one of the largest electricity consumers in the Silicon Valley, is currently an Enron retail natural gas customer.
Enron is the world's leading integrated electricity and natural gas company. The company, which owns approximately $23 billion in energy related assets, produces electricity and natural gas, develops, constructs and operates energy 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."
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For additional information please contact:
Gary Foster
713-853-4527
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