Ex-Enron Execs Launch Own Firm
Jan. 14, 2002
PHILADELPHIA (AP) _ Several former Enron executives launched a new company Monday to market energy services to small and medium-sized businesses instead of the large industrial customers the bankrupt giant had sought out.
Celeren Corp. was negotiating the final details of an expected $15 million agreement with its first customer, a New York company, and expected to announce that deal by the end of next week, said Thomas A. Brigger, president and chief executive officer.
The company is also negotiating with potential investors, looking for a $5 million equity partner in what Brigger called a ``tough market for venture capital, equity investment.''
Brigger, Celeren chief operating officer Donald S. Parker and others left Enron in July to start organizing their new venture, well before the Houston-based energy trader rocked the financial world with its Oct. 16 disclosure of a $638 million third quarter loss and its bankruptcy filing on Dec. 2.
Brigger had been Mid-Atlantic regional manager for Enron Energy Services' outsource fulfillment operation, and Parker had been Mid-Atlantic regional director of asset risk management.
``The group we were with, Enron Energy Services, was doing very well. Our group had nothing to do with accounting,'' Brigger said.
He said Celeren will focus on small to mid-sized businesses and institutions often overlooked by large energy conglomerates.
``Enron liked large Fortune 100 companies with 400 sites, we like a single site or a reasonably placed location. Generally our prototype is a company that spends about $1 million a year on energy services, though $10 million doesn't bother us,'' Brigger said.
Celeren plans to offer services in which customers pay a flat monthly payment over the life of the agreement, and Celeren then takes the responsibility for obtaining the energy _ electric or gas _ on the market and delivering it.
In addition to the customer expected to be announced next week, Brigger said several more, whose names he declined to disclose, were ``in the pipeline.''
On the Net: http://www.celeren.com