SAN DIEGO and DALLAS, July 26, 2002 — Clarus Energy Corp. has teamed with Hunt Power, L.P. to form a new partnership called Clarus Energy Partners, L.P.
The partnership provides electricity and thermal energy under long-term supply contracts using dedicated, on-site power generation facilities that are developed, owned and operated by Clarus Energy. Clarus Energy, with principal offices in San Diego, California, targets energy-intensive businesses in the life sciences, pharmaceutical, food processing, manufacturing and hospitality industries.
The on-site distributed generation model of Clarus Energy provides these businesses tangible monthly savings, while providing a hedge against the uncertainty of future rate hikes or supply outages.
Installation of the first customer project is underway and will be announced next month. The project, which is typical of projects Clarus Energy will develop, transfers all of the responsibilities associated with on-site power generation, including design, permitting, equipment acquisition, installation, operation, fuel supply and maintenance from the customer to Clarus Energy.
The advantage for customers is a hassle-free energy alternative that stabilizes energy costs, assures supply and avoids capital expenditures. Customers buy electricity just like they would from their utility, but with the added advantage of stable prices — a much needed benefit in a volatile electric market.
David Field, president and founder of Clarus Energy said, “Our customers’ electricity and natural gas costs are a substantial portion of their overall operating costs. These customers face significant uncertainty with respect to the price and availability of energy. Clarus Energy provides our customers with an assured supply of energy at a predictable price, enabling our customer to remain focused on their core business.”
The partnership leverages Hunt Power’s financial support, existing metering businesses, energy management services, and fuel supply management expertise to further build upon the Clarus Energy on-site energy delivery platform. The strength of the partnership allows Clarus Energy to provide the customer with competitive energy supply options. The partnership is initially focusing on projects in California, with plans to expand to other states to meet the growing demand for alternative energy supply options.
“We firmly believe that distributed generation plays a meaningful role in increasing the electric generating capacity in California, while also providing customers a competitive choice,” said Hunter L. Hunt, president of Hunt Power, L.P. “We’re pleased to play a positive role in enhancing the supply of electricity in California and other states. As to the management team at Clarus Energy, it is the best we’ve seen at combining a winning business model with the ability to execute in a business that requires discipline and careful planning.”
Hugh Baker, vice president of Hunt Power, led the negotiations that resulted in the formation of the partnership. Baker said, “In addition to providing a solid financial foundation, this partnership makes strategic sense to prospective customers for a number of reasons. Clarus Energy’s management team is very experienced in utility infrastructure project development and financing. They have an all-star staff of recognized experts in distributed generation technology, project management, gas supply and delivery and technical sales.”
Hunt Power, L.P. is a project development and investment organization that seeks out opportunities to create value in the utility marketplace. Hunt Power owns, operates and/or invests in enterprises engaged in electric metering, technology office space development, power generation technologies and power infrastructure development.
Hunt Power is an affiliate of Dallas, Texas based Hunt Consolidated, Inc., which ranks number 101 on the Forbes magazine list of the top 500 privately held companies in the United States. Hunt Consolidated is directed by Ray L. Hunt. Other Hunt Consolidated affiliated companies include Hunt Oil Company, Hunt Realty Corporation, Hunt Private Equity Group and Hunt Ventures, L.P. For more information, please visit the Web site at www.huntpower.com .
Headquartered in San Diego, Clarus Energy Partners, L.P. provides cost competitive, reliable electricity to energy-intensive businesses such as life sciences, pharmaceutical, food processing, manufacturing, and hospitality services. Visit Clarus Energy Partners, L.P. on the Web at www.clarusenergy.com . For more information call +1-800-486-4001.