A consortium of 21 energy and utility companies has established Pantellos Corp., a new e-commerce company capitalized at $100 million and based in Houston. Scheduled to begin operation in the first quarter of 2001, the company will operate an independent internet marketplace for nonfuel energy services and goods purchases.
A search is under way for a chief executive, said a spokesman for member company American Electric Power Co.
The business-to-business exchange will operate as a single global portal for purchasing anything from transformers and wire to turbines and equipment repairs. Initial services will include online proposals, price quotes, and auctions.
"The launch of Pantellos Corp. is an important milestone in our continuing efforts at PG&E Corp. to capitalize on e-commerce opportunities to improve the speed, efficiency, and cost-effectiveness of the way we do business,'' said PG&E Chairman, CEO, and Pres. Robert D. Glynn, Jr. "We expect Pantellos to benefit our utility customers and generate value for both our shareholders and suppliers alike."
The for-profit exchange will be active in the electric, natural gas distribution, natural gas pipelines, and other energy sectors, according to a statement. By building an online marketplace, the consortium expects to generate significant benefits for purchasers and suppliers alike by streamlining purchasing processes, shortening purchase cycles, and increasing accessibility between buyers and sellers, according to founding member Reliant Energy Inc., Houston.
Forrester Research Inc. estimates utilities are the third largest industry in terms of total online business trade. To date, Pantellos, derived from Greek for "complete" or "absolute," has initiated contact with some 1,500 suppliers, according to a statement.
Pantellos has selected Commerce One as its primary technology partner. Morgan Stanley Dean Witter & Co. has been retained as the financial advisor for the new company. PricewaterhouseCoopers LLP is providing business advice and assisting in the development of the e-marketplace.
Since the announcement of its formation in March, six additional companies have joined the original 15 members. The new members of Pantellos are Carolina Power & Light Co., DTE Energy Co., Dominion Resources Inc., El Paso Energy Corp., GPU Inc., and Ontario Power Generation Inc. They join Reliant Energy, American Electric Power Co., Cinergy Corp., Consolidated Edison, Inc., Duke Energy Corp., Edison International, Entergy Corp., First Energy Corp., FPL Group, PG&E, Public Service Enterprise Group Inc., Sempra Energy, Southern Co., TXU Corp., and Unicom Corp.
