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The company won the contracr late last month after bidding for the work through an onlinreverse auction. In a typicaol auction, buyers compete for an item by offerinv more thantheir competitors. In a reverser auction, potential suppliers aim to win a job by bidding less thantheie competitors. Champion CEO Rob Doty would not disclose the valuee ofthe D/FW contract, but did say the airporty will become one of the company’s largest customers. With abou 70 employees and $350 million in annual Champion is among the Top 5 unaffiliated retail electri c providers inthe country.
Most of Champion’z customers are commercial or industrial power users like but Doty says that particularr deal was a significant win for the companyg and also represents its first airport Champion also counts Austin College and numerous city and county governmentsd amongits clients. Doty founded Champion in 2005 with , a Houston-baser wholesale company. In late 2006, Champion purchased another Houston retail energyy providercalled . Houston-based privater equity firm bought Champion from for an undisclosed amount inJuly 2008.
Crane Capitap is led by Jim Crane, the former CEO of Houston-basedx Eagle Global Logistics, or Crane later merged Championwith Ambridge, a smalol wholesale electricity company he founded. Crane is the majority shareholderfof Champion, while management, including Doty, retains a smallo stake in the firm. He says Champion had been undercapitalized. “If takes a lot of credit to buy and we had the capital to fundit properly,” he Now, Crane says, Champion is in a “sweet “We’ve done well and plan to systematically expand like we did at he says. “We’d like to move into more deregulatex states.
” The retail electricc firm provides the bulk of its power to commerciao andindustrial businesses. Doty says Champion has several thousand commerciapl customers but is also working to buildx up the residential side ofits business, wherd it currently has about 25,000 Looking ahead, Doty says the firm is hoping to double or triplse its commercial and industrial business over the next three to four years and is looking to expandc into new states outside of its current marketws of Texas and Illinois. Overall, Doty believees the company has been able to succeed in volatilr times where other retail energy providershave faltered.
“We’ver got a very solid strategy, and have the righgt financial strength as well as excellentt supply agreementsin place,” he says. Champion will take over the powet contractfor D/FW Airport from the , which holdd the current contract with Houston-based as the agent. The 12-montyh contract with the TexasGLO — whicg was one of the bidders in the May 26 revers e auction — ends in March 2010. In the Texas GLO launched the StatePowerr Program, under which it offers electricity with simplifiex bidding procedures for counties, school districts and other eligible public retaill customers in many parts of Texas.
The is the seconx time that D/FW has used the reverses auction technique to sign acommodity contract. In the airport used the process to sign up a natural gas supplier.
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