Energy conservation talk from an energy purveyor? That was the focus of the remarks of Phillip Tonge, president of U.S. operations for Direct Energy at a Houston Strategic Forum luncheon on Thursday. That may seem counterintuitive, but Tonge thinks that if he helps customers save energy, they'll keep buying power from his company.
Continue reading below
Direct Energy, a unit of the U.K.'s Centrica plc, entered the Texas market when it deregulated, along with TXU Corp., and it's been buying up assets every since, most recently a power plant in Victoria, Texas, its third power plant acquisition (it bought its first two for $277 million). Tonge said he's scouting for more, particularly in renewables like wind and solar power. His company has also bought natural gas reserves in Canada via its acquisition of Calgary, Alberta-based Rockyview Energy Inc. last November for $115 million, so he may do the same in the U.S. to fuel his power plants. His company is also investing in companies that provide services around power-using appliances, such as its purchase of Dayton, Ohio-based Residential Services Group in 2004 for $150 million.
"We'll continue to invest in renewable energy and in technology," he said, noting that Centrica has committed 1 billion pounds ($1.8 billion) for investment in clean coal technology. - Claire Poole
