Earlier this year, PG&E raised rates on commercial users by 15%. "Our goal is to stabilize and manage the risk of prices going up even more," says Tate. Under terms of the negotiations, Enron would provide individual contracts for two to three years with Bay Area property owners at a rate agreed upon by the Bay Area Energy Committee. Talks have been ongoing for nearly six months, but Tate anticipates that BOMA is close to wrapping an agreement with Enron within the next several weeks.

Although the rates would not come cheap--at least not at first, says Tate--the deal will allow property owners to lock in one set price for the agreed term, thus building owners would not be subjected to rate increases by PG&E or any other energy provider. "The two benefits here are that property owners will be able to lock in their prices and know what the energy costs are going to be. They will be protected from severe market fluctuations," he says. "And as utility prices continue to rise, locked-in rates could become a discount."

Energy bills are the single largest operating expense for building owners, says Tate. Enron would not be able to protect building owners from rolling blackouts, says Tate. "It's up to the California ISO and the local utility company to determine which grids are affected by the rolling blackouts."