POWER BRIEFS - May 25, 2001

POWER BRIEFS
FRIDAY, MAY 25, 2001

NEWPOWER IN THE NEWS - =20
PULLING PLUG ON TXU IS A BRIGHT IDEA - [Fort Worth Star-Telegram, May 17.] =
NewPower, 43 percent owned by the Houston energy powerhouse Enron, is the =
price leader [for householders] who keep the home lights fully ablaze. Reli=
ant Energy, corporate kin to Houston Power and Light, is the price leader f=
or frugal homeowners?New Power offers power users a choice of locking in po=
wer rates at 8.3 cents for two years subject to a $7.50 monthly service fee=
, or accepting a guarantee that their power bills will always be less than =
TXU's comparable bite for the same period. For the moment, the low-price gu=
arantee plan sports the lowest rates?"We're trying to figure out what custo=
mers want," says Gael Doar, a NewPower spokeswoman. "The whole thing about =
energy restructuring is that you have a choice." To date, the PUC has recru=
ited 17 percent of the 90,000 volunteers it hopes will become TXU exes this=
summer. One result is sweeter deals. New Power will toss in free electri=
city this December and next to folks who sign up by May 31. On Wednesday, =
a New Power sales representative tossed in a $25 gift certificate at Home D=
epot if I'd sign up on the spot.

A FLICKERING PILOT - [Houston Chronicle, May 20.] NewPower Co., a partnersh=
ip of Houston-based Enron Corp., America Online and IBM, is mailing various=
offers to homes, including one for free Continental Airlines frequent-flie=
r miles, while Green Mountain Energy Co., which sells only wind-produced po=
wer in the state, has set up information booths at local events such as the=
Texas Crawfish Festival? Separate slots were also reserved for commercial =
and industrial customers to participate in the pilot. In many areas statewi=
de, a lottery was held because more than enough nonresidential customers si=
gned up. "Businesses make these kinds of decisions all the time, whether i=
t be coffee or copiers. They will switch if there is economic value," said =
Tim Vail, NewPower's vice president of energy technology solutions. "Consum=
ers have a different view, much more of an emotional sale."

CLEVELAND MAYOR PROPOSES NATURAL GAS SAVINGS - [Cleveland Plain-Dealer, Ma=
y 22.] Tens of thousands of Cleveland residents would save about $100 on na=
tural gas next winter under a cooperative-buying arrangement proposed yeste=
rday by Mayor Michael R. White. As proposed, the discounted natural gas wou=
ld come from the New Power Co. The city identified New Power as a gas suppl=
ier with operating licenses in 19 states and 630,000 customers. The proposa=
l was praised by Councilman Michael O'Malley, chairman of council's Public =
Utilities Committee. O'Malley said he expected the the City Council to appr=
ove the deal with New Power. http://www.cleveland.com/cuyahoga/plaindealer/=
index.ssf?/xml/story.ssf/html_standard.xsl?/base/cuyahoga/9905238071687131.=
xml=20

NEWPOWER, AMPO TARGET OHIO - [Gas Daily, May 22.] A venture of The New Pow=
er Company and AMPO will co-brand a new marketing program targeting residen=
tial and small commercial customers who wish to pool their volumes for a be=
tter gas price in Ohio. See p. 5 on the following link: http://home.enron.=
com/pubs/gasdaily/data/gasdaily.05.22.2001.pdf=20

CUYAHOGA FALLS HOOKS CITY UP WITH GAS PLAN - [Akron Beacon Journal, May 22.=
] Fifty-six percent of Cuyahoga Falls natural gas customers who did not sig=
n up for one of the many discount rate plans offered beginning last summer =
will have a chance to do so.=20
The city has reached an agreement with American Municipal Power-Ohio (AMP-O=
hio), its electricity supplier, to allow residents to sign up for a reduced=
natural gas rate beginning June 25, Mayor Don Robart announced yesterday. =
To do so, AMP-Ohio is working with NewPower, a New York-based independent =
company that supplies natural gas to more than 630,000 residential and smal=
l commercial customers. http://www.ohio.com/all/2001/May/22/newsdocs/002572=
.htm=20

AMP-OHIO DEAL MAY SET A PATTERN FOR NEWPOWER ADVANCES - [Restructuring Toda=
y, May 23.] American Municipal Power - Ohio in Columbus, has 10 customers =
that serve 85 cities and towns - some as large as Columbus and Cleveland - =
and 10 industrials. A subsidiary of the joint action agency, AMPO Inc, has=
embarked on a two-year venture with The New Power Co to co-brand a gas agg=
regation program for residents and small businesses throughout the 85 juris=
dictions to leverage group buying power of the consumers. NewPower's David =
Eichinger hopes to develop similar deals. =09He finds AMPO "a treat to work=
with" and we suggested that if the deal goes well, NewPower may open doors=
to the public power community for aggregation. AMPO sells less than $4 mil=
lion in power annually at retail but sells $216 million at wholesale. The C=
ity of Cleveland in a related agreement will work with NewPower to offer a =
low, fixed-cost plan for the coming heating season. Given the natural gas p=
rice spikes of the past winter it looks like AMPO and NewPower may have an =
attractive package. Eichinger thinks that the reason markets are opening u=
p is to provide the public with the best deal and the most innovative servi=
ces. "Forward thinkers like AMPO are going to be great for us to work with=
," Eichinger observed. What about selling electricity with AMPO? "Absolute=
ly," he replied. Working with AMPO helps NewPower build brand and a presenc=
e, he noted. Add to that an endorsement to sell all of the products and se=
rvices including new technologies.

OTHER ENERGY NEWS - NewPower shares news items weekly to inform employees a=
bout coverage of the energy industry. Publication of a news clip is not an=
endorsement of its viewpoint or accuracy.

UTILITIES TINKERING WITH PRICING PLANS - [Atlanta Journal & Constitution, M=
ay 20.] Retail prices are regulated in most parts of the country. But when =
utilities pay more for wholesale power, they have to pass it on. How much p=
rices rise depend partly on whether we learn, again, to conserve. http://ww=
w.accessatlanta.com/partners/ajc/epaper/editions/sunday/business_b370252301=
5142660068.html=20

ADMINISTRATION REJECTS CARTER-ERA SACRIFICES, SUGGESTING COMMON SENSE - [As=
sociated Press, May 20.] Bush's blueprint relies on more energy supplies an=
d a basket of enticements for greater energy efficiency. In his speech intr=
oducing it, he called conservation "the result of millions of good choices =
made across our land on a daily basis," and asked for no hard choices in pa=
rticular. Rozanne Weissman, speaking for the Alliance to Save Energy, was =
not surprised. "Americans do not want sacrifice and deprivation," she said.=
http://www.chron.com/cs/CDA/story.hts/business/energy/915261=20

'SMART' METERS MAY EASE BEATING METE OUT BY ENERGY PRICES - [Boston Globe, =
May 21.] Proponents of electricity deregulation insist that introducing ma=
rket competition to the once-quintessential monopoly industry will save peo=
ple money in the long run. But a big, still largely unsolved challenge of e=
lectric deregulation involves something fundamental to successful markets: =
accurate, timely prices for the product that consumers can respond to in th=
e classic supply-demand dance. http://www.boston.com/dailyglobe2/141/busine=
ss/_Smart_meters_may_ease_beating_mete_out_by_energy_prices+.shtml=20

PG&E TARGETS BUSINESS CUSTOMERS TO CONSUME LESS - [IndustryClick, May 21.] =
In conjunction with its customer education campaign called "The More You Kn=
ow About Conserving Energy, the Less Energy You Need," Pacific Gas and Elec=
tric Co. has stepped up its efforts to update business customers on the ene=
rgy crisis and provide tools to help them conserve energy-especially in the=
coming months when power shortages are likely. http://www.telecomclick.com=
/magnewsarticle.asp?newsarticleid=3D201641&magazineid=3D11=20

PARTNERSHIP TO EDUCATE CONSUMERS; SUPPLIERS OF POWER, GAS WILL BE SELECTED =
- [Richmond Times-Dispatch, May 23.] A partnership called the Virginia Ene=
rgy Team will run the advertising and education programs needed to get cons=
umers ready for competition among power and natural gas suppliers. Teaching=
consumers about deregulation and how to choose a power supplier is conside=
red critical if the pricing of power is to be turned over to market forces =
without harming consumers. The SCC has planned a five-year, $30 million edu=
cation program. Efforts also will be made to reach people directly, such as=
through community groups. Small-scale grants will be available to groups t=
o help them conduct consumer education. http://www.timesdispatch.com/busine=
ss/MGB5IY5Z0NC.html=20

ONLY 11 PERCENT SAY THEY HAVE BEEN GREATLY INCONVENIENCED BY ENERGY WOES - =
[Associated Press, May 23.] Seventy-five percent of Californians say the s=
tate's energy woes have become a very serious problem, but so far only 11 p=
ercent say they have been greatly inconvenienced by power blackouts, accord=
ing to a new poll. Thirty-two percent said they have been inconvenienced s=
ome or a little by blackouts. Fifty-seven percent said they experienced no =
inconvenience or had not been hit by a power outage. http://www.contracosta=
times.com/news/california/stories_statebrk/powerpoll_20010522.htm=20

TXU TO DIVIDE DEREGULATED, REGULATED UNITS WITHIN FIRM - [Dallas Morning Ne=
ws, May 22.] TXU Corp., owner of the state's largest utility, plans to fur=
ther separate its regulated power delivery business from its power generati=
on and energy trading business, chief executive Erle Nye told analysts Mond=
ay. Deregulation will allow residential consumers to choose their electrici=
ty provider for the first time in generations. "Investor-owned" utilities s=
uch as Dallas-based TXU Corp.'s TXU Electric will also be able to compete f=
or customers outside their service areas for the first time. Its power deli=
very business, which includes the poles and wires that transmit electricity=
, will continue to be regulated. http://www.dallasnews.com/business/stories=
/373364_TXU_22bus.ART.html=20

TEXAS TO EASE INTO NEW PILOT - Houston Chronicle, May 22.] The PUC has deci=
ded that electric customers enrolled in Texas' upcoming pilot market will b=
e switched to new retail electric providers (REPs) gradually this summer in=
the interest of optimal operation of all necessary systems. http://www.ne=
wsalert.com/bin/story?StoryId=3DCoWNKqaicse8TrevsruC&FQ=3D%22ERCOT%22&Nav=
=3Dna-search-&StoryTitle=3D%22ERCOT%22

CONSUMER GROUPS SAY GPU CASE CRITICAL TO RATEPAYERS - [Pittsburgh Post-Gaz=
ette, May 22.] The Public Utility Commission is expected to consider a case=
that could affect the future of electricity deregulation in Pennsylvania. =
After being hit with significant losses, GPU Energy, an electric utility w=
ith customers in the Erie area and in pockets throughout Pennsylvania, has =
asked the PUC for permission to increase its rates beyond the caps it agree=
d to when electric deregulation began. Consumer groups fear that if the PU=
C allows GPU Energy to do this, it will prompt other utilities to seek a ro=
llback of rate caps that have helped protect Pennsylvanians from the soarin=
g electric bills that have Californians reeling.=20
http://www.post-gazette.com/businessnews/20010522puc5.asp=20

ASSEMBLY FORMS ENERGY PLAN - [Albany Times Union, May 22.] Assembly Democra=
ts plan to unveil a comprehensive energy package today that will promote co=
nservation efforts, provide rate relief and enhance consumer protections. =
The bills, to be outlined by Assembly Speaker Sheldon Silver and Energy Com=
mittee Chairman Paul Tonko, include a measure to set up a block of discount=
ed power for consumers -- the first 200 kilowatts on a monthly bill, accord=
ing to some sources. The average New York consumer uses 300 kilowatts. Als=
o, a bill is planned that would protect consumers from requirements of ener=
gy service companies.
http://www.timesunion.com/AspStories/story.asp?storyKey=3D58618&;category=3D=
Y

NATIONAL ENERGY MARKETERS ASSOCIATION CALLS FOR TARGETED INCENTIVES FOR NEW=
SUPPLIES, CONSERVATION, INFRASTRUCTURE AND TECHNOLOGY - [NEM Press Release=
, May 22.] The National Energy Marketers Association (NEM), responding to t=
he Administration's Energy Plan and the Democrat's Response is issuing an u=
rgent call for bipartisan support for meaningful incentives for massive new=
investments in additional energy supplies, conservation, infrastructure an=
d technology.=20
http://biz.yahoo.com/bw/010522/2504.html=20
=20
SITHE RETURNS FIRE ON NSTAR - [Boston Herald, May 22.] Sithe Energies yeste=
rday forcefully denied a claim by NSTAR that it overcharged customers $70 m=
illion for electricity during times of peak demand and blamed NSTAR for cau=
sing the problems. NSTAR last week accused power generators Sithe and PG&E=
National Energy Group of overcharging for electricity last year when conge=
sted transmission lines made it tough to get cheaper outside power. It also=
asked regulators to cap prices. NSTAR, the successor to Boston Edison, Com=
monwealth Electric and other power companies, plans a rebate to customers i=
f it wins back the $70 million. http://www.bostonherald.com/business/busine=
ss/powr05222001.htm

CONSUMER RIGHTS CITED IN PETITION WITH TEXAS PUC - [Houston Chronicle, May=
23.] Residential consumers switching power companies under a pilot deregul=
ation program aren't being properly informed of their rights, four consumer=
groups said Tuesday. Consumers Union, Texas Legal Services Center, Texas R=
atepayers' Organization to Save Energy and the AARP Capital City Task Force=
for Deregulation of Electricity filed a petition Tuesday with the PUC. In=
it, they asked the PUC to require electric providers to fix their document=
s, to take any other action needed to clear up consumer confusion that may =
be occurring, and to develop a standard document format for providers to us=
e. They also ask that the PUC's education campaign better inform consumers=
of their rights. http://www.chron.com/cs/CDA/printstory.hts/business/91867=
4=20

US LAWMAKERS PLEDGE TO COOPERATE ON ENERGY POLICY INITIATIVES - [Oil & Gas =
Journal Online, May 24.] Partisanship is being left at the door when it com=
es to energy policy, key energy lawmakers and Bush administration officials=
pledged Thursday. At a Senate energy panel hearing Thursday, featuring Ene=
rgy Sec. Spencer Abraham, there was already a clear acknowledgement that th=
e new Senate makeup will require the two political parties to be more open =
to compromise if energy legislation is to move forward this summer. Abraham=
stressed, "We start from a wide base of agreement. We all recognize energy=
as a critical challenge. Both the chairman and ranking member of this comm=
ittee have sponsored robust energy bills, and I am struck by how much commo=
n ground there is between these bills and our proposals." Bingaman also co=
ncurred that his bill "has many areas in common" with the others and added =
that "we need to identify" areas of mutual agreement. http://ogj.pennnet.co=
m/articles/web_article_display.cfm?Section=3DOnlineArticles&ARTICLE_CATEGOR=
Y=3DTOPST&ARTICLE_ID=3D102093=20

MEDIA QUOTE OF THE WEEK: There's been a lot of talk from some of our criti=
cs that somehow the only focus is on additional supplies. . . . That's simp=
ly not true," declared Cheney. "Anybody who says that simply hasn't read th=
e report." - Associated Press, May 23 http://inq.philly.com/content/inquir=
er/2001/05/23/business/NUKE23.htm=20

OF INTEREST * * * "OW, SUMMER'S COMING" - NEWPOWER DEBUTS NEW TEXAS PRINT A=
DS
=09Beginning June 1, TXU, HL&P and other Texas investor-owned utilities mus=
t offer customer choice for up to five percent of their electrical load. T=
o date, NewPower has captured an average of roughly 40 percent of the avail=
able marketshare in the TXU/HL&P service territories. We can, however, con=
tinue to sign up customers for the pilot as long as slots are available.=20
=09Last weekend, new NewPower advertisements began appearing the Dallas Mor=
ning News and Houston Chronicle. These ads (click twice on pdf attachments=
below) will continue to run on weekends and on a few key weekdays over the=
next four to six weeks. NewPower's lead product in Texas is the Guarantee=
d Savings Plan, offering consumers a guaranteed savings over the utility pr=
ovider. Another offer, the Peace of Mind Plan, locks in a fixed rate for t=
wo years.
=09The Texas pilot will end when full regulation begins on January 1, 2002.
Guaranteed Savings Ad (Dallas Morning News example)=20
- N01NP003#12 3125x15.75.pdf=20

Peace of Mind Ad (Houston Chronicle example)
- N01NP004#14 O 11.625x21.5.pdf=20

# # #
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