McLean, Va., February 5, 2003 — ACN Energy, a marketer of natural gas and electric power serving the residential and small commercial market announced today that agreement has been reached with Aquila Merchant Services, Inc. (AMS), a wholesale energy merchant, and Aquila, Inc., AMS’s parent company.
The agreement effectively ends the long-term relationship between the companies. Aquila had been providing supply, trade finance, market guarantees, loans and associated services to ACN Energy in exchange for fees and liens on ACN Energy assets.
While specifics of the agreement remain confidential, ACN has satisfied the loans, replaced Aquila’s market guarantees, and procured gas and electric supplies from new counterparties, in effect, replacing or satisfying all the elements of the Aquila accord. In exchange, Aquila has released all of its liens and security interests in ACN Energy.
“While we have enjoyed our relationship with Aquila, we are pleased to have amicably finalized our agreements. The resulting impact on our balance sheet is significantly positive and continues to reflect the overall financial health of ACN Energy,” said John Huffman, chief executive officer of ACN Energy.
ACN Energy retained Skipping Stone, Inc., an energy-consulting firm, to negotiate the Aquila agreements as well as negotiate replacement strategic finance and supplier arrangements for the 9 Billion Cubic Feet of natural gas and 135 Megawatts of power consumed annually by ACN retail customers.
ACN Energy is a wholly owned subsidiary of ACN Inc. ACN Energy serves mass-market customers behind 14 utility service areas with both natural gas and electricity.
About ACN Inc.
A privately held customer acquisition company, ACN, Inc., is headquartered in Farmington Hills, Michigan, and operates in 11 countries throughout North America and Europe.
ACN Energy is a wholly owned subsidiary of ACN, Inc. ACN is a member of the Direct Selling Association. More information is available at www.acninc.com.
About Aquila Inc.
Based in Kansas City, Missouri, Aquila operates electricity and natural gas distribution networks serving customers in seven states and in Canada, the United Kingdom, and Australia.
The company also owns and operates power generation assets. At June 30, 2002, Aquila had total assets of $11.9 billion. More information is available at www.aquila.com.