Bear Stearns has signed a deal to buy and sell fuel from a Houston-based provider as part of the bank's continuing expansion in the energy sector.

Bear Energy, the bank's energy trading subsidiary, will support power sales for MMC Energy, which means buying fuel and selling energy and ancillary services for two of MMC's California power plants. Bear Energy will receive a fixed monthly fee as well as a performance incentive for any revenues it makes after meeting MMC's annual budget for the two plants.