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Web-based business-to-business exchange fuels by energy crisis

Monday, February 5, 2001

California's power shortage has boosted energy levels at the Utility Warehouse, an online business-to-business exchange.

The Portland company, which lists used and surplus utility equipment on its Web site, is getting phone calls and server hits from contractors, manufacturers and others battling chaos in California's power supplies and prices.

In particular, Marketing Director Lane Kadel said, the Utility Warehouse is hearing from plants that are vulnerable to the state's interruptible power exchange program.

Manufacturers that participate in the program, such as General Mills, can have their power diverted elsewhere with only 30 minutes' notice. Their options are to go black, meaning that they lose power completely; to keep the power flowing by agreeing to pay 100 or more times the usual cost of a kilowatt hour; or to crank up their own backup generators.

Kadel said many California lumber companies are turning to option No. 3, judging from their increased interest in buying steam-turbine generators that burn waste wood, known as hog fuel.

The Utility Warehouse has 25,000 to 35,000 pieces of equipment listed at any given time, including steam-turbine generators that burn hog fuel, Kadel said.

Since its founding by three former Bonneville Power Administration engineers and managers, the Utility Warehouse has seen more than $40 million of equipment sold via its Web site (www.utilitywarehouse.com). The figure includes items such as power circuit breakers, transformers, switches, load interrupters, insulators, conductors, transmission and distribution line structures and poles.

Between 200 and 400 companies pay $600 a year for unlimited listings on the Web site, plus additional fees for search boxes, vendor page links and other Web services. The Utility Warehouse's three-person staff, operating as Resource Management Associates, also acts as equipment brokers, earning commissions on deals they put together for buyers and sellers.

"It's amazing how fast this stuff goes in the market," Kadel said.

-- Steve Woodward

Copyright 2001 Oregon Live. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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