DALLAS, March 5, 2002 — Officials with Retail Electric Provider Cirro Corp.â„- have announced a five-year, contractual relationship with wholesale energy merchant Aquila, Inc., that will significantly strengthen Cirro’s buying power to purchase electricity from energy suppliers on behalf of Texas customers.
As part of the contract, Kansas City based Aquila, a provider of risk management services and a wholesaler of electricity and natural gas in North America, will be granted a ten percent equity stake in Cirro.
“Cirro was established to empower customers through affordable electricity, personal service and advanced management tools,” said Tim Rogers, CEO of Cirro. “An alliance with such a powerful industry leader will facilitate the fulfillment of that mission by adding Aquila’s financial strength and expertise to our company. This relationship will enable Cirro to make more economic purchases of electricity while providing the framework for further expansion into other deregulating electricity markets.”
Aquila’s Wholesale Services business provides commodity and risk management services focusing on the energy industry. The company’s structured financial products combine financing with innovative commodity products and services. Through the alliance, which became effective January 1, 2002, Aquila will provide Cirro with a revolving line of credit as well as a credit facility to purchase power from suppliers over the next five years. The credit line can progressively escalate as Cirro grows each year.
“We were attracted to Cirro because the company has a solid business plan, customer-focused philosophy, experience and leadership in place to be successful,” said Mike Young, Aquila vice president of Market Aggregation. “As this market continues to evolve, Cirro, through its credit support by Aquila, is ideally positioned to optimize its ability to attract customers while efficiently obtaining economic supply.”
Headquartered in Plano, Texas, Cirro provides electricity and services to residential and business consumers in Texas. The Company offers competitive energy prices, improved customer service, pricing choices and innovative products and services tailored to meet customer needs.
“Cirro continues to move forward in the energy marketplace through a series of strategic business initiatives and customer acquisition strategies,” added Rogers. “The addition of such an experienced partner in electricity and natural gas services is of tremendous value to our company. We anticipate a long, healthy and prosperous relationship with Aquila.”
For more information, visit www.cirrocorp.com or www.aquila.com.