Chevron Energy Solutions Acquires Viron Energy Services from CMS Energy, Expands Performance-Based Energy Efficiency Business
This is news concerning ChevronTexaco but issued by a ChevronTexaco subsidiary, Chevron Energy Solutions, and archived here for record purpose.
SAN FRANCISCO, July 2, 2003 - Chevron Energy Solutions, a ChevronTexaco subsidiary (NYSE: CVX), today announced that it has acquired the non-federal business of Viron Energy Services (Viron) from CMS Energy (NYSE: CMS). Viron is one of the oldest energy engineering firms specializing in performance contracting in the U.S. The acquisition significantly enhances Chevron Energy Solutions' capabilities in performance contracting, particularly in the education and state and local government markets, where Viron has secured hundreds of contracts.
"We look forward to offering Viron's expertise to schools, colleges, universities, cities, counties, states and many other customers, while continuing to deliver effective energy solutions to federal agencies and commercial and industrial customers," said Jim Davis, president of Chevron Energy Solutions.
"The fact that Viron has continued to win new projects speaks to its reputation, and we plan to build on this through the financial strength, technology resources and energy experience of ChevronTexaco," said Davis.
Founded in 1974, Viron has grown its energy services business over three decades and pioneered performance contracting, which involves guaranteeing future energy and operational savings - typically 15 to 30 percent of a customer's annual energy costs - through energy-efficient equipment upgrades, energy management solutions and other projects. Performance contracts are increasingly popular among educational and government institutions with budget constraints, because they enable customers to use future savings to finance additional facility improvements in the near term, within existing budgets.
Like Chevron Energy Solutions, Viron has maintained in-house engineering and monitoring capabilities, provided financing options and delivered solutions designed to address each customer's particular needs without promoting specific vendors, products or commodities.
John Mahoney, formerly president of Viron Energy Services, will serve as chief operating officer for Chevron Energy Solutions' expanded organization.
"To become part of Chevron Energy Solutions' organization and ChevronTexaco's 100-plus-year history as a leader in energy, opens up a world of opportunities for our customers and our employees," said Mahoney. "It's a great fit with Viron's capabilities.""
In addition, Chevron Energy Solutions confirmed that it has completed the transfer of contracts related to its purchase of the federal business of Planergy International, formerly known as Energy Masters International. As a result of that acquisition, announced in April 2002, Chevron Energy Solutions has been designing and implementing energy efficiency projects and integrated information systems for the federal government, helping many federal installations to manage infrastructure requirements and comply with energy reduction mandates.
Davis added, "With these two developments, Chevron Energy Solutions is well positioned to provide energy services to all institutional markets, in addition to commercial and industrial companies."
About 180 energy professionals have joined Chevron Energy Solutions as a result of the two acquisitions, expanding the company to approximately 300 employees. In addition, more than a dozen offices have been added, covering all major regions of the country.
About Chevron Energy Solutions
San Francisco-based Chevron Energy Solutions is a wholly-owned subsidiary of ChevronTexaco. With over two dozen offices nationwide, Chevron Energy Solutions partners with institutions and businesses to provide comprehensive solutions that help customers use less energy and pay less for energy, and that ensure reliable, high quality power for critical operations. Its services include energy information management, energy efficiency upgrades, and power quality and reliability solutions, including distributed generation.
For more information about Chevron Energy Solutions, please visit our web site at www.chevronenergy.com.
Updated: July 2003