Press Release: Harrah's Entertainment, Inc.
June 11, 2001
LAS VEGAS, NV -- Harrah's Entertainment, Inc. (NYSE: HET) announced Friday that, in response to skyrocketing energy
costs, it has signed a seven-year energy management agreement with Enron Energy Services, a subsidiary of Enron
Corp. (NYSE: ENE).
The agreement is the latest in a series of energy conservation efforts, including capital projects to reduce consumption,
that Harrah's has undertaken to minimize the impact of higher energy costs.
The agreement calls for Enron Energy Services to provide Harrah's with electricity and natural gas at 16 Harrah's
casinos in seven states. The companies are also working together to identify additional energy efficiency projects
that will reduce energy use at Harrah's casinos across the country.
``Energy price volatility in Nevada, New Jersey and Illinois is likely to increase over the next decade,'' said
Karen Spacek, Harrah's Vice President of Strategic Sourcing. ``Harrah's casinos in those three states account for
nearly three-quarters of the $40 million we now spend annually on electricity and natural gas.
``One Nevada utility has already signaled a 36 percent increase in electricity rates next year, and spot prices
for natural gas have nearly quadrupled since the first quarter of 2000,'' Spacek said. ``We clearly needed to develop
a strategic energy plan that produces efficiencies and provides price stability and greater value to our guests.
``Improved demand-side management should enable us to achieve more than $2 million in annual savings, while effective
commodity management will allow us to lock in power rates that could be substantially below market rates over the
next several years,'' Spacek said.
Enron Energy Services President Janet Dietrich said, ``By taking a proactive risk-management approach with their
electricity and natural gas supplies, Harrah's is significantly protected from energy price uncertainty and volatility.
``We see this agreement as the beginning of a long-term relationship with Harrah's, allowing them to focus on their
core business while we secure stable energy supplies for them and continuously improve the energy efficiencies
of their casinos,'' Dietrich said.
Enron is one of the world's leading electricity, natural gas and communications companies. The company, with revenues
of $101 billion in 2000, markets electricity and natural gas, delivers physical commodities and financial and risk-management
services to customers around the world, and has developed an intelligent network platform to facilitate online
business. Fortune magazine has named Enron ``America's Most Innovative Company'' for six consecutive years. Enron's
Internet address is www.enron.com.
Founded more than 60 years ago, Harrah's Entertainment, Inc. is the most recognized and respected name in the casino-entertainment
industry, operating 21 casinos in the United States under the Harrah's, Showboat, Rio and Players brand names.
With a combined database of more than 23 million players, Harrah's Entertainment is focused on building loyalty
and value with its target customers through a unique combination of great service, excellent products, unsurpassed
distribution, operational excellence and technology leadership.
Additional information about Harrah's Entertainment is available on the Company's web site, www.harrahs.com.
This release includes ``forward-looking statements'' intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified
by phrases such as the company ``believes,'' ``expects,'' ``anticipates,'' ``foresees,'' ``forecasts,'' ``estimates''
or other words or phrases of similar import. Similarly, such statements herein that describe the company's business
strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that could cause actual results to differ materially
from those in forward-looking statements. Such risks and uncertainties include, but are not limited to, economic,
bank, equity and debt-market condition, changes in laws or regulations, third-party relations and approvals, decisions
of courts, regulators and governmental bodies, factors affecting leverage, including interest rates, abnormal gaming
holds, and effects of competition.
SOURCE: Harrah's Entertainment, Inc.