POWER BRIEFS
FRIDAY, JUNE 8, 2001



NEWPOWER IN THE NEWS  -   
NEWPOWER TESTS CONSERVATION TOOLS - [Philadelphia Business Journal, May 31.] The next time you forget whether you left the thermostat on, there's a chance you could turn it off with your cell phone.   You could, that is, if you're from one of 300 households in Philadelphia that will participate in one of three pilot programs that will link electricity meters to the Internet. http://philadelphia.bcentral.com/philadelphia/stories/2001/05/28/daily27.html 

NEWPOWER SEES SAVINGS FROM SMART ENERGY TECHNOLOGY - [Reuters, June 1.] NewPower said it will conduct three pilot programs in Philadelphia to test consumers' reaction to "smart" energy saving technology.  These new products require "smart"' meters that tell  a "smart"' device to operate when the cost of generating electricity is cheapest?" Energy restructuring leads to technological innovation, efficiency and environmental benefits,"' said H. Eugene Lockhart, NewPower's president and chief executive officer.  "`These pilots are a wonderful example of control being shifted from the utility to the consumer. The nation's move to energy restructuring makes it possible for consumers to better manage their energy needs." http://biz.yahoo.com/rf/010601/n0179210.html

ENERGY-SAVING TECHNOLOGY TO BE USED IN PILOT PROGRAM - [Philadelphia Inquirer, June 1.] NewPower said it would launch three residential pilot programs in Philadelphia this month, to gauge consumer response to energy-saving technology.  The three programs will include 100 homes each and consist of a time-of-use metering pilot, a heating and air-conditioning control pilot, and a Web-based interactive pilot, which lets customers control their thermostat from any Web-enabled device. NewPower said it wanted to learn how consumers react to pricing and features of so-called demand-side management measures, and how to make them profitable. 	
NEWPOWER TO LEARN IMPACT OF HI-TECH METERS, CONTROLS ON CUSTOMERS LIVES - [Restructuring Today, June 1.] NewPower is taking the latest in DSM technology to the people in an effort to see how they react?.Tim Vail, NewPower's vice president of energy technology solutions, is not doing a technology beta test.   "We want to learn consumer acceptance and responses to the products."  A critical Vail target is learning how residential consumer lifestyles compare with load profiles so test volunteers will have to fill out a number of questionnaires about what they were doing at a given time.  The power industry has long bunched up ratepayers into classes using an average to picture typical use of customers.  "We've got empirical data from a variety of sources but we want to get real world experience with it," Vail noted, a major departure from most metering pilots underway these days?"How do we take this technology and meld it into a product that consumers will want and use - that's the critical component of restructuring," he added?"Education is a major component of the whole piece for us," Vail said. 	

SAVING ENERGY IS HOT AGAIN - [Pittsburgh Post-Gazette, June 3.] Not since the oil crisis of the 1970s has the public's interest in energy conservation seemed so high.  Even President Bush touts the value of conservation, despite criticism from environmentalists that his administration's policies rely too much on increased energy production and too little on energy efficiency and conservation. John Hangar, a former PUC member and current president of PennFuture, an environmental and consumer advocacy organization, wants electric utilities to install time-of-use meters in customers' homes. . . At least one company has leap-frogged over state regulators. NewPower began installing energy-saving technology in 300 households in the greater Philadelphia area.  "These pilots are a wonderful example of control being shifted from the utility to the customer. The nation's move to energy restructuring makes it possible for consumers to better manage their energy costs," said H. Eugene Lockhart, NewPower's president and chief executive officer. http://www.post-gazette.com/businessnews/20010603conservebiz3.asp 

TWO MARKETERS CUT NATURAL GAS PRICES - [Atlanta Journal-Constitution, June 1.] Atlantans are getting a small break on their energy bills: Two leading Georgia natural gas marketers have reduced prices following a sharp drop in wholesale prices. No. 1 marketer Georgia Natural Gas Services reduced its variable price --- the price subject to monthly change --- for June by 4.5 percent. Shell Energy, the No. 3 marketer, marked down its fixed price, guaranteed for one year, by 5 percent and its variable price by 3 percent?NewPower, a new entrant in Georgia's unregulated natural gas market, is offering to lock in a gas price of 74.9 cents per therm for two years. That compares with one-year offers of 84.9 cents per therm from Georgia Natural Gas and 76.9 cents from Shell Energy. 

NEWPOWER TO START GAS SALES TO PG&E CUSTOMERS IN CALIFORNIA - [Bloomberg, June 4.] NewPower is offering northern California residents two-year fixed-price natural-gas contracts to lure customers from PG&E Corp.'s gas utility.  In Sunnyvale, California, NewPower is offering is 98 cents a therm, or $9.80 per million British thermal units, and a $2.99 monthly fee, NewPower's Web site said. NewPower will offer gas service in 37 California counties, spokeswoman Gael Doar said. http://www.bloomberg.com/fgcgi.cgi?T=marketsquote99_news.ht&s=AOxv3sBTUTmV3UG93  

NATURAL GAS OFFERED AT FIXED RATE - [The Freemont Argus and Oakland Tribune, June 5] New York state-based NewPower is offering California residents a fixed-rate contract for natural gas, a commodity that saw big price spikes this past winter due to a supply shortage.  Residential customers in PG&E's service territory who commit to a two-year contract would pay 98 cents for each therm of natural gas. There would also be a monthly service fee of $2.99. http://www.argus-ang.com/default.asp?puid=16&spuid=16&indx=910116&article=on 

PRIX FIXE NATURAL GAS NOW AVAILABLE - [Contra Costa Times, June 5.]  With an offer of a two-year price guarantee, NewPower has set out to capture a portion of the retail natural gas market now served by the bankrupt utility unit of PG&E Corp. http://www.contracostatimes.com/news/leads/stories_one/enron_20010605.htm 

NEWPOWER OFFERS FIXED RATES - [Gas Daily, June 5.]  Gas customers in Pacific Gas & Electric's service territory can lock into a fixed rate with NewPower, a subsidiary of New Power Holdings.  The national gas and electric marketer yesterday began to offer  two-year fixed-rate to customers in several counties in Northern California.  "NewPower is enormously pleased to provide California consumers, who've been buffeted by volatile energy prices, with a stable gas contract," said Eugene Lockhart, president and CEO of The New Power Co.
SELLING STABLE PRICES WORKS FOR NEWPOWER IN CALIFORNIA - [Restructuring Today, June 6.] Yes, the California market is open for retail gas competition.  It's been open for maybe a decade but few have found the market attractive until now.  NewPower is going in selling a two-year fixed price package that really appeals in today's world of price spiking. The fixed price insulates customers from price spikes in the volatile California marketplace. NewPower's Terri Cohen relates that the firm expects to sign up 16,000 customers.  They'll have the opportunity to lock in gas at 98? a therm, compared to an average PG&E price last January of $1.40 a therm.  The LDCs change their price monthly with a filing to the PUC based on what their costs have been.  NewPower's deal is available to retail customers in 37 northern California counties, including San Francisco and Sacramento. Before the announcement, NewPower already had 600,000 gas and electric customers in 19 markets.

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

SURVEY SHOWS CUSTOMERS OVERWHELMINGLY FAVOR PRICE STABILITY - [Maxim Consulting Press Release, June 1.]  A nationwide survey shows that gas customers want their local gas utility to pursue strategies that will prevent future price spikes. The survey results also suggest ways for utilities to regain customer loyalty diminished in the wake of last winter's price increases. The results of the survey were recently presented to a group of utility executives and regulators at the New England Conference of Public Utilities Commissions. The survey shows that customers overwhelmingly prefer programs that mitigate price volatility, such as fixed price and capped price programs. http://www.newsalert.com/bin/story?StoryId=CoXCtqbWbtKvgmdi0&FQ=%22maxim%20consulting%22&Nav=na-search-&StoryTitle=%22maxim%20consulting%22 

SHELL UNIT SIGNS DEAL ON NATURAL GAS PRICES - [Cleveland Plain Dealer, June 2.] Shell Energy Services Inc. yesterday became the next big player in Northeast Ohio's quickly changing utility services industry.  The Texas-based subsidiary of Shell Energy signed a one-year deal with Northeast Ohio Public Energy Council to provide discounted natural gas to customers in NOPEC communities across eight counties, beginning in September. http://www.cleveland.com/news/plaindealer/index.ssf?/xml/story.ssf/html_standard.xsl?/base/news/991474210115554.xml 

9 CITIES UNITE FOR GREATER MIGHT  - [Boston Globe, June 3.] Imagine if nine Massachusetts cities combined their muscle to lower their health-care premiums and energy costs, and unify plans for affordable housing and developing jobs.  Those are among the hopes of city leaders who participated in a new cooperative effort that kicked off Wednesday.  At the meeting, officials from Boston, Cambridge, Chelsea, Everett, Malden, Medford, Melrose, Revere, and Somerville discussed ways their communities might be able to better work together. Possible areas of collaboration include joint purchasing and forging common strategies. http://www.boston.com/dailyglobe2/154/north/9_cities_unite_for_greater_mightP.shtml 

ON BUSH'S BRAND OF ENERGY DIVERSITY - [TIME.Com, June 4.] The Bush administration's national energy policy is meant to stimulate a national debate. It is certainly doing that. Whatever you believe about its recommendations, the report is a surprisingly well-crafted overview of America's energy situation. http://www.time.com/time/business/printout/0,8816,128829,00.html 

THE BATTLE OF CALIFORNIA - [Newsweek, June 4.] There are two dueling storylines for California's energy crisis. In the Gray Davis version a noble public servant who inherited a flawed electricity deregulation scheme from his Republican predecessor is trying to defend California's shellshocked consumers against the depredations of greedy "out of state" energy producers and an uncaring White House. In the Republican scenario, a desperate politician, worried about his falling poll numbers, is trying to shift the blame to the White House. http://www.msnbc.com/news/582445.asp#BODY

ELECTRICITY USAGE SHRINKS BY 11% - [San Francisco Chronicle, June 4.] By turning off lamps, turning up thermostats and buying energy-efficient light bulbs, the people of California helped reduce the state's electricity consumption last month 11 percent below the May 2000 level, more than was expected, Davis administration officials said yesterday. 
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2001/06/04/MN183543.DTL 

BINGAMAN, SENATE ENERGY CHIEF, WILL BLOCK BUSH PRODUCTION PLAN - [Bloomberg, June 5.] Bush opposes caps on energy prices; Bingaman is cosponsor of legislation to impose caps on wholesale energy prices in California although, according to a spokesman, he'd prefer the Federal Energy Regulatory Commission do that on its own. 
Bingaman says rather than offer his own plan now, he'll try to sit down with Republicans and negotiate something both sides can agree on. http://quote.bloomberg.com/fgcgi.cgi?ptitle=Energy%20News&s1=blk&tp=ad_topright_energy&refer=topfin&T=markets_bfgcgi_content99.ht&s2=blk&bt=ad_position1_energy&middle=ad_frame2_energy&s=AOxxZjBXlQmluZ2Ft 


PREPAID POWER PROPOSED - [Associated Press, June 5.] Operators of the region's electricity grid recommended yesterday that consumers pay extra to ensure that New England has enough electricity generation capacity.  Federal regulators had ordered the new charge in December -- even though New England now has plenty of generation capacity -- but a court challenge has kept it from being implemented. The rate would go into effect July 1, if approved by federal regulators.  The proposal requires companies that buy electricity from generators to pay those generators to maintain enough extra capacity to accommodate peak demand.  If the companies don't pay enough for extra capacity, they are forced to pay a "deficiency charge." http://www.telegram.com/news/page_one/10nelectric1.html 

ALARMED CALIFORNIANS CUT ELECTRIC POWER USE - [Washington Post, June 6.] Fearful of blackouts and expensive utility bills, Californians have begun conserving electricity at a rate the state has rarely seen.  New figures show that California residents and businesses reduced power consumption by 11 percent in May. http://www.boston.com/dailyglobe2/157/nation/Alarmed_Californians_cut_electric_power_use+.shtml 

CONSUMERS LAG ON ELECTRIC PRICE CURVE - [CBS MarketWatch, June 6.] Up to now, many California electricity users have been opening their monthly bills and muttering to themselves: "What energy crisis?"  Of course there have been periodic blackouts for some, and many utility customers have seen their bills rise. But a sizable number of consumers have not seen a big change in their electric bills.   That's all about to change. And it's just in time, because wholesale electricity prices are coming down but state-approved energy increases are taking effect. http://www.marketwatch.com/news/story.asp?print=1&guid={AD628F25-0EB8-4EA4-A8FB-E1617477E3D0}&siteid=yhoo 


MEDIA QUOTE OF THE WEEK:  "What's more beneficial, move forward on the larger agenda or trudge around through the mud on this? Why beat our heads against the wall on price caps when we'll never be any closer on it?  If we moved forward, it would look like a partisan bloodbath."  - A GOP Aide, CNN, June 6, 2001 http://www.cnn.com/2001/ALLPOLITICS/06/06/congress.energy/index.html 

JUST 9 DAYS 'TIL FATHER'S DAY - THINK NEWPOWER - If you're planning on buying Dad a tie this Father's Day, you're still living in the '90's.  Instead, consider buying a gift that focuses on a more pressing, "2001" topic he will appreciate - energy efficiency and savings.
Saving on energy and energy efficiency have been a concern for most Dads, and "shut off the lights, I'm not made of money" has been roared by Dads nationwide. NewPower offers some Father's Day gift ideas that will light up his life:
The Power Planner allows the family to save energy when using even the most energy-hungry appliances. A plug that is simple to use (just plugs into a wall outlet), it can reduce the energy usage of some motorized appliances by up to 23 percent.   It's great for the refrigerator, window air conditioning unit or gas clothes dryer.  It's only $39.95, plus shipping and handling.  It will pay for itself.
MoleculAir? Filters slip into the home heating and cooling systems where they capture allergy-causing particles, dust, pollen, pet dander and dirt that contaminate the air and clog the heating and cooling systems, often causing them to expend more energy.  As an added service, Dad will get a bi-monthly reminder (by mail or e-mail) to change the filters.  The price of the filters runs from $39.95 to $59.95, plus shipping and handling.
The EnergyPack offers 300-watts of portable power.  Whether Dad is boating, camping, indoors or outoors, he has a rechargeable generator (think portable outlet) with him.  He can use it to jump-start his car or to recharge his cell phone.  It's small enough to carry with him, yet powerful enough to run his laptop for seven hours.  It is $159.95 plus shipping and handling (a more powerful, 600-watt EnergyPack is also available for $279.95).
It's not to late to order these items in time for Father's Day.  Call 1-866-NEWPOWER.  NewPower is the innovative energy source consumers can trust.

OF INTEREST * * * J.P. Morgan (JPM) has introduced a report launching its small-cap strategy (a small cap stock is defined by JPM as one with less than $3 billion in capitalization). The report provides small-cap stock picks, insights and data to leverage JPM analysts' views.  The first report (5/16/01) was titled "The Inefficient Frontier" because JPM believes that small caps are often poorly followed, leading to inefficiencies from which astute investors can profit.   The report's "Trading Recommended List" includes 25 stocks that JPM considers "best-positioned companies" poised for immediate appreciation, with a 12-month upside potential of at least 30 percent (turnover on the list occurs as warranted).  Among the 25 stocks on the list is NPW, The New Power Company, the only stock under the industry listing for "Electric Companies." 
Please note, news such as this is included in POWER BRIEFS to inform employees about the performance of and "word on the Street" about our stock.  NewPower does not endorse any one brokerage firm. 

#  #  #
________________________________________

Managers, please decide whether to post or pass along copies of POWER BRIEFS for contractors or consultants who are unable to access it on Lotus Notes.
.  
Please send questions or comments to: NewPower.Communication@NewPower.com 

POWER BRIEFS is a proprietary publication for all NewPower employees and is not intended for use by external audiences.