09-16-1996 Planning Packet - Laserfiche WebLink

Home Browse Search

NorAm brings a growing, well-respected wholesale gas and electricity trading business, significant mid-stream gas assets in the form of interstate pipelines, gathering, and storage, and the nation’s third largest gas distribution operation. One of its distribution divisions, Entex, serves metropolitan Houston, in addition to communities in Louisiana and Mississippi, and has approximately 600,000 customers in common with 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 Energy positions Houston Industries to be a national wholesale 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, offering innovative products and efficient service throughout a broad region of the country. "Market and regulator^' forces are changing the industry 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. "We 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 efficiency 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 presents exciting new opportunities for our emplo_ ees as we enter the na -»! e is distribution and transmission businesses for the first time, expand into whoi^.uie gas and electric marketing, and extend our international position." Milt Honea, Chairman, President, and CEO of NorAm Energy said, "This transaction is a natural fit 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 combination- 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 enhanced ability to offer a broad array of products and services, particularly in electricity. Finally, the combination will provide greater opportunities for our employees as the combined company continues to expand iis wholesale, retail, and international presence." I t