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ENRON AND SUIZA SIGN LONG-TERM ENERGY OUTSOURCE AGREEMENT
FOR IMMEDIATE RELEASE: Tuesday, July 13, 1999
HOUSTON – Enron and Suiza Foods Corporation, a leading manufacturer and distributor of dairy products and one of America’s fastest growing companies, announced today Enron’s largest energy outsourcing agreement to date. Enron will provide comprehensive energy management services at more than 50 of Suiza’s manufacturing facilities in 24 states.
This ten-year agreement assures Suiza that it will receive cost competitive energy through efficiency measures designed to drive down consumption and transfer energy-related risk management to Enron. Specifically, Enron will manage all aspects of Suiza’s energy commodities; design, build and finance certain energy infrastructure projects; devise optimal maintenance and operation standards related to energy conversion equipment; and deliver a consolidated monthly invoice that reflects an energy cost per unit of product.
“Enron’s ability to provide fully-integrated, nationwide energy outsource service and Suiza’s strong growth projections will drive even more operational efficiencies over the life of the contract and will likely increase the total contract value as Suiza expands,” said Lou Pai, chairman and CEO of Enron Energy Services. “We look forward to playing an integral role in Suiza’s continued success.”
“This long-term agreement with Enron enables us to focus our time and capital on growth in our core business and the perfection of our core operational skills,” said Gregg Engles, chairman and CEO of Suiza. “We are pleased to have Enron on board as our energy partner and look forward to a prosperous and growing relationship.”
Suiza Foods, a Dallas-based company, is a leading manufacturer and distributor of fresh milk and related dairy products, shelf-stable and refrigerated food and beverage products, frozen food products, and coffee. The company’s products are distributed throughout the United States and Puerto Rico. Through aggressive acquisition, consolidation, and operation of numerous regional and national companies, Suiza has become a major force in the U.S. dairy industry. Suiza’s internet address is www.suizafoods.com and trades on the NYSE under the ticker symbol, “SZA.”
Enron is one of the world’s leading electricity, natural gas and communications companies. The company, which owns approximately $30 billion in energy and communications assets, produces electricity and natural gas, develops, constructs and operates energy and water facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing a nationwide Internet-based communications network. 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
Cory Olson
Suiza Foods
214-303-3645
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