DETROIT, Aug. 15, 2005 (PRNewswire) -- A subsidiary of DTE Energy, today announced it will purchase six onsite energy projects, including Metro Energy, which operates the energy facility at Detroit Metro Airport, from Duquesne Light Holdings (DLH).
The companies have signed a purchase agreement for the projects, although closings of the individual projects will occur over the next several months. The purchase price for all six projects will total from $35 million to $40 million.
"These projects are a perfect strategic fit for us," said Chris Brown, executive vice president, DTE Energy Resources. "Our strategy is to invest in operations where we can add value, such as onsite energy projects that leverage our operations and management experience."
Onsite energy projects, located at industrial or commercial facilities, are dedicated to meeting the energy needs of host companies. The projects in this purchase are for energy services to automotive plants, airports and large industrial food processing facilities throughout the Midwest and in Ontario, Canada.
The DTE Energy subsidiary will provide a variety of energy management services to the six companies under long-term management service agreements. The subsidiary currently owns and/or operates 20 onsite energy projects throughout the country with automakers, steel companies, large commercial and institutional businesses, and in the pulp and paper industry. In this capacity, the company develops and operates all types of industrial energy equipment, including support systems such as electrical equipment, steam boilers, wastewater treatment and lighting systems, compressed air, chilled water and air handling equipment.
"Our experience in operating similar service projects for large industrial customers brings a wealth of energy experience to the table," said Kent McCargar, DTE Energy Services president. "The goal in all of our onsite energy projects is to provide efficient energy management so our customers can concentrate on what they do best -- their core businesses."
Based in Ann Arbor, Mich., the DTE Energy (dteenergyservices.com) non-utility subsidiary develops, acquires, builds, owns and operates energy projects for industrial, commercial and institutional customers and power generation facilities. DTE Energy Services has facilities in 15 states, ranging from power plants to on- site energy facilities such as coke batteries, powerhouses and pulverized coal injection operations.
DTE Energy (www.dteenergy.com) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.2 million customers in Michigan, and more than a dozen other energy-related businesses focusing on power and industrial projects, fuel transportation and marketing, and unconventional gas.
Duquesne Light Holdings (www.duquesnelightholdings.com) comprises an electric-utility company and several affiliate companies that complement its core business. Duquesne Light Co., its principal subsidiary, is a leader in the transmission and distribution of electric energy, offering superior customer service and reliability to more than 500,000 customers in southwestern Pennsylvania.
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