09-23-1996 Council Packet - Laserfiche WebLink

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NorAm brings a growing, well-respected wholesale gas and electricity tradine business, significant mid-stream gas assets in the form of interstate pipelines ^ the nation s third largest gas distribution operation. One of Its distribution divisions, Entex, serves metropolitan Hous’.on, in addition to Communities in Louisiana and Mississippi, and has approximate!. 600,000 customers in common witn HL&P. NorAm also has a leading position in retail energy services and an emerging presence in Mexico and Latin America. The acquisition of NorAm Energ>' positions Houston Indus’ries lo oe a national wholesa.e and retail energy services leader with extensive gas and electric capabilities The combined entity will be well-equipped to meet the evolving needs of customers country products and efficient service throughout a broad region of the ' "Market and regulator)' forces are changing the industr)' landscape to a more competitive environment. In addition, the electricity and natural gas markets are converging, and customers are demanding additional products and services. This acquisition will substantially strengthen Houston Industries' strategic position given these rapid changes in the industry," said Don Jordan. V\e see several strategic benefits to this acquisition," continued Jordan. "First, it combines Houston Industries’ electric market knowledge with NorAm Energy’s wholesale gas and electricity trading operations and skills, which will help propel the combined company forward in the converging wholesale energy markets. Second it positions the combined company to provide the bundled gas and electric products and services customers are increasingly demanding. Third, it helps establish Houston industries broad national energy presence and offers the opportunity for improved eLiciency across all of our operations. Fourth, it gives us access to 3.6 million customers, 2.1 million more than we had previously." Jordan added, "This combination nrese’^ts exciting new opportunities for our employees as we enter the natural gas distribution and transmission businesses for the tirst time, expand into wholesale gas and electric marketing, and extend our international position." Milt Honea Clhairman President, and CEO of NorAm Energy said, "This transaction is a natural f't that will benefit our shareholders, customers, and employees. Our companies have a shared vision, common geographical areas, and complementary skills and assets. Our shareholders benefit from the value created by the combinaticn- the increased access to Houston Industries’ experience and skills in the electric power industry, Houston Industries’ financial strength, and our complementary international development interests. Our customers benefit from the combined company’s ermanced abihty to offer a broad array of products and services,, particularly in electricity. Finally, the combination will provde greater opportunities for our employees as the combined c ompany continues to expand its wholesale, retail and international presence." "