In a unique partnership, a gas company and an electric utility are tapping their connections into U.S. households to offer both energy and non-energy products and services.
PacifiCorp Holdings Inc., Portland, Ore., and KN Energy Inc., Lakewood, Colo., have unveiled a package that provides households with energy, telecommunications, and information/entertainment television.
PacifiCorp and KN formed a joint venture to offer-in addition to natural gas and electric power supply-services to residences via partnerships and alliances that include satellite television, wireless modem/Internet capabilities, long distance telephone, home product repair, and energy conservation monitoring. These services, in turn, are provided under one convenient package on one bill served through one customer service number.
The two companies in December 1996 purchased Orcom Systems, Bend, Ore., a company that had designed sophisticated billing and information systems for small-to-midsize utilities in partnership with IBM.
The same technology will now be adapted to household needs.
"This is a bold approach for the future," said Fred Buckman, PacifiCorp's CEO. "We're providing utilities throughout the country with an aggressive and competitive platform that will foster their success in a changing environment."
Larry Hall, KN Energy chairman and CEO, noted that his company is taking a different approach from most in teaming with an electric utility: "We want to be partners and suppliers to other utility companies, as opposed to those in our industry who are attempting to take over other markets and customers."
Dubbed Simple Choice, the package will be offered to PacificCorp's 1.4 million customers in seven states.
PacifiCorp is the nation's third largest electric utility, with 1.4 million customers in seven western states. KN Energy is a gas gatherer, processor, transporter, and marketer in 10 western and midcontinent states.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
