HOUSTON, Texas, March 4, 2002 — In one of the largest commercial real estate-related energy contracts ever signed in the state of Texas, Crescent Real Estate Equities Co. has entered into an agreement with Dynegy Inc. to provide electricity to a majority of Crescent’s Texas portfolio.
Under the terms of the 12-month agreement, Dynegy is providing 115 megawatts of power to 54 Crescent-owned facilities in Houston and Dallas/Fort Worth, totaling nearly 22 million square feet. The agreement took effect on January 1, 2002.
“This agreement is about more than our ability to craft unique solutions to meet customers’ energy needs; it demonstrates that competitive markets work and customers are interested in partnering with a proven leader with experience navigating competitive markets,” said Louis Dorey, president of marketing and origination for Dynegy Inc. “Crescent’s philosophy of teamwork and collaboration helped make this partnership possible.”
On January 1, 2002, Texas opened its power market to competition. To date, more than 300,000 Texans have expressed an interest in switching power providers. In addition to delivering an improved array of products and services, industry restructuring has encouraged significant investment in new generation facilities throughout the state, resulting in projected reserves in excess of the 15 percent. Dorey believes this has resulted in greater reliability and downward pressure on prices for consumers.
According to Denny Alberts, president and chief operating officer for Crescent, “Crescent began researching energy efficiencies long before deregulation took effect in January. By being proactive years before deregulation, we can now potentially save millions of dollars in electricity costs and pass these substantial savings onto our customers.”
As an asset-backed physical supplier of energy commodities, Dynegy serves the complex wholesale and retail energy markets in managing the varying needs of energy supply, delivery and price risk management. Dynegy owns and controls nearly 19,000 megawatts of generating capacity in the U.S. and markets and sells approximately 12.6 billion cubic feet per day of natural gas.
Through its global energy delivery network and marketing, logistics and risk management capabilities, Dynegy provides solutions to customers in North America, the United Kingdom and Continental Europe. The company’s web site is www.dynegy.com.