Illinova Energy Partners Expands Presence in Arizona through Purchase of Quality Energy Services

Strategic Insights -

Illinova Energy Partners (IEP), a leading power marketing and energy management service company, has acquired Quality Energy Services (QES), a natural gas marketing company based in Tempe, Arizona. The acquisition marks a significant expansion of IEP's presence in Arizona, positioning the company for growth in the state's rapidly changing energy landscape. As Arizona prepares for electric deregulation, IEP aims to leverage its new foothold to offer a range of services, including natural gas supply, energy information management, and energy efficiency services.

Key Takeaways:

  • IEP has purchased Quality Energy Services (QES), a natural gas marketing company based in Tempe, Arizona, expanding its presence in the state in advance of electric deregulation.
  • The acquisition gives IEP a competitive foothold in Arizona and increases the financial strength of QES, enabling it to further reduce natural gas costs for current customers.
  • IEP has demonstrated significant growth since mid-1998, increasing natural gas revenues more than three-fold and serving eight times more sites than at the beginning of 1998.
  • IEP plans to serve about 5,000 industrial and large commercial facilities by the end of 1999 and may see natural gas revenues grow to approximately $90 million, an increase of $11 million from 1998.
  • The acquisition of QES brings additional competencies to IEP's core staff, allowing the company to lower its customers' total on-site supply costs.
  • IEP has also purchased EMC Gas Transmission in Michigan and Equitable Resource Marketing in Indiana in the last six months, expanding its presence in new markets.

Statistics:

  • IEP's natural gas revenues have increased more than three-fold since mid-1998.
  • IEP is now serving eight times more sites than at the beginning of 1998.
  • IEP projected natural gas revenues of approximately $90 million in 1999, a $11 million increase from 1998.
  • IEP plans to serve about 5,000 industrial and large commercial facilities by the end of 1999.

Sources:

  • BUSINESS WIRE, "Purchase Triples Illinova Energy Partners' Gas Revenues; Company to Open Offices in Arizona" (April 8, 1999)
  • Illinova Energy Partners, Various Press Releases (1999)