KANSAS CITY, MO and TAMPA, FL, March 21, 2002 — Aquila Merchant Services, a wholly-owned subsidiary of Aquila, Inc. has agreed to provide both power trading and risk management consulting services to Tampa’s Seminole Electric Cooperative Inc.
Under a one-year contract, Aquila will provide all of the cooperative’s short-term power trading services (hourly periods through 90-day duration). Through the contract, Aquila will be providing power to many Florida businesses and homeowners.
Seminole is a generation and transmission cooperative that provides bulk power to 10 member distribution cooperatives. These cooperatives serve more than 1.5 million individuals and businesses in 45 counties, from the Georgia border to the Everglades.
“Aquila is one of the gas and power marketers in North America, so our members will benefit from their trading and risk management know-how,” said Tim Woodbury, vice president of strategic services for Seminole Electric.
The consulting services will be provided by Aquila’s Radius Group, which was formed less than a year ago to assist energy users manage risks associated with the purchase and sale of energy and energy related products.
The group is unique within the industry because its focus is to complement the risk management needs of its clients. In some cases, clients want a complete family of risk management services, including access, through Aquila’s Risk 180 software, to daily energy market knowledge from Aquila’s trading activities. Other firms, like Seminole, only need risk management services that complement their own risk staff.
“This is the beginning of what we hope is a very long relationship with Seminole,” said Ed Mills, president and chief operating officer of Aquila Merchant Services.
” We are entering an era where analyzing energy needs and all associated risk requires a great deal of hands-on experts and collective, daily knowledge. Helping Seminole and its members is one more way we can make greater use of what we’ve built to run our world-class energy wholesaling and risk management businesses.”
Members of Aquila’s Radius Group typically work with a company’s senior management team, usually led by the chief financial officer, to identify company risks or opportunities. The goal of the group is to help firms avoid the disasters many companies and firms faced last year in the aftermath of the California energy crisis. The Radius Group has experts in regulated and non-regulated energy businesses, chemicals, agriculture, banking and finance, coal, aluminum, refining, steel and other industrial markets.
Based in Kansas City, Aquila (formerly UtiliCorp United) is an international energy and risk management company. It is one of the largest wholesalers of electricity and natural gas in North America, provides wholesale energy services in the United Kingdom and has a presence in Germany and Scandinavia. It also operates electricity and natural gas distribution networks in seven states and in Canada, New Zealand and Australia. More information is available at www.aquila.com or www.merchant.aquila.com.