POWER BRIEFS
FRIDAY, MAY 25, 2001



NEWPOWER IN THE NEWS  -   
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. Reliant Energy, corporate kin to Houston Power and Light, is the price leader for frugal homeowners?New Power offers power users a choice of locking in power 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 guarantee plan sports the lowest rates?"We're trying to figure out what customers want," says Gael Doar, a NewPower spokeswoman. "The whole thing about energy restructuring is that you have a choice." To date, the PUC has recruited 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 electricity 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 Depot if I'd sign up on the spot.

A FLICKERING PILOT - [Houston Chronicle, May 20.] NewPower Co., a partnership of Houston-based Enron Corp., America Online and IBM, is mailing various offers to homes, including one for free Continental Airlines frequent-flier miles, while Green Mountain Energy Co., which sells only wind-produced power 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 statewide, a lottery was held because more than enough nonresidential customers signed up.  "Businesses make these kinds of decisions all the time, whether it be coffee or copiers. They will switch if there is economic value," said Tim Vail, NewPower's vice president of energy technology solutions. "Consumers have a different view, much more of an emotional sale."

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

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

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 sign up for one of the many discount rate plans offered beginning last summer will have a chance to do so. 
The city has reached an agreement with American Municipal Power-Ohio (AMP-Ohio), 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 small commercial customers. http://www.ohio.com/all/2001/May/22/newsdocs/002572.htm 

AMP-OHIO DEAL MAY SET A PATTERN FOR NEWPOWER ADVANCES - [Restructuring Today, 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 aggregation program for residents and small businesses throughout the 85 jurisdictions to leverage group buying power of the consumers. NewPower's David Eichinger hopes to develop similar deals. 	He 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 million in power annually at retail but sells $216 million at wholesale. The City 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 price spikes of the past winter it looks like AMPO and NewPower may have an attractive package.  Eichinger thinks that the reason markets are opening up is to provide the public with the best deal and the most innovative services.  "Forward thinkers like AMPO are going to be great for us to work with," Eichinger observed. What about selling electricity with AMPO?  "Absolutely," he replied. Working with AMPO helps NewPower build brand and a presence, he noted.  Add to that an endorsement to sell all of the products and services including new technologies.


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.

UTILITIES TINKERING WITH PRICING PLANS - [Atlanta Journal & Constitution, May 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 prices rise depend partly on whether we learn, again, to conserve. http://www.accessatlanta.com/partners/ajc/epaper/editions/sunday/business_b3702523015142660068.html 

ADMINISTRATION REJECTS CARTER-ERA SACRIFICES, SUGGESTING COMMON SENSE - [Associated Press, May 20.] Bush's blueprint relies on more energy supplies and a basket of enticements for greater energy efficiency. In his speech introducing 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 particular.  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 

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

PG&E TARGETS BUSINESS CUSTOMERS TO CONSUME LESS - [IndustryClick, May 21.] In conjunction with its customer education campaign called "The More You Know About Conserving Energy, the Less Energy You Need," Pacific Gas and Electric Co. has stepped up its efforts to update business customers on the energy 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=201641&magazineid=11 

PARTNERSHIP TO EDUCATE CONSUMERS; SUPPLIERS OF POWER, GAS WILL BE SELECTED  - [Richmond Times-Dispatch, May 23.] A partnership called the Virginia Energy Team will run the advertising and education programs needed to get consumers ready for competition among power and natural gas suppliers. Teaching consumers about deregulation and how to choose a power supplier is considered 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 education program. Efforts also will be made to reach people directly, such as through community groups. Small-scale grants will be available to groups to help them conduct consumer education. http://www.timesdispatch.com/business/MGB5IY5Z0NC.html 

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

TXU TO DIVIDE DEREGULATED, REGULATED UNITS WITHIN FIRM - [Dallas Morning News, May 22.]  TXU Corp., owner of the state's largest utility, plans to further separate its regulated power delivery business from its power generation and energy trading business, chief executive Erle Nye told analysts Monday. Deregulation will allow residential consumers to choose their electricity provider for the first time in generations. "Investor-owned" utilities such as Dallas-based TXU Corp.'s TXU Electric will also be able to compete for customers outside their service areas for the first time. Its power delivery 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 

TEXAS TO EASE INTO NEW PILOT - Houston Chronicle, May 22.] The PUC has decided that electric customers enrolled in Texas' upcoming pilot market will be switched to new retail electric providers (REPs) gradually this summer in the interest of  optimal operation of all necessary systems. http://www.newsalert.com/bin/story?StoryId=CoWNKqaicse8TrevsruC&FQ=%22ERCOT%22&Nav=na-search-&StoryTitle=%22ERCOT%22

CONSUMER GROUPS SAY GPU CASE CRITICAL TO RATEPAYERS -  [Pittsburgh Post-Gazette, 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 with customers in the Erie area and in pockets throughout Pennsylvania, has asked the PUC for permission to increase its rates beyond the caps it agreed to when electric deregulation began.  Consumer groups fear that if the PUC allows GPU Energy to do this, it will prompt other utilities to seek a rollback of rate caps that have helped protect Pennsylvanians from the soaring electric bills that have Californians reeling. 
http://www.post-gazette.com/businessnews/20010522puc5.asp 


ASSEMBLY FORMS ENERGY PLAN - [Albany Times Union, May 22.] Assembly Democrats plan to unveil a comprehensive energy package today that will promote conservation efforts, provide rate relief and enhance consumer protections.  The bills, to be outlined by Assembly Speaker Sheldon Silver and Energy Committee Chairman Paul Tonko, include a measure to set up a block of discounted power for consumers -- the first 200 kilowatts on a monthly bill, according to some sources. The average New York consumer uses 300 kilowatts.  Also, a bill is planned that would protect consumers from requirements of energy service companies.
http://www.timesunion.com/AspStories/story.asp?storyKey=58618&category=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 the Administration's Energy Plan and the Democrat's Response is issuing an urgent call for bipartisan support for meaningful incentives for massive new investments in additional energy supplies, conservation, infrastructure and technology. 
http://biz.yahoo.com/bw/010522/2504.html 
 
SITHE RETURNS FIRE ON NSTAR - [Boston Herald, May 22.] Sithe Energies yesterday forcefully denied a claim by NSTAR that it overcharged customers $70 million for electricity during times of peak demand and blamed NSTAR for causing the problems.  NSTAR last week accused power generators Sithe and PG&E National Energy Group of overcharging for electricity last year when congested transmission lines made it tough to get cheaper outside power. It also asked regulators to cap prices. NSTAR, the successor to Boston Edison, Commonwealth Electric and other power companies, plans a rebate to customers if it wins back the $70 million. http://www.bostonherald.com/business/business/powr05222001.htm

CONSUMER RIGHTS CITED IN PETITION WITH TEXAS PUC  - [Houston Chronicle, May 23.] Residential consumers switching power companies under a pilot deregulation program aren't being properly informed of their rights, four consumer groups said Tuesday. Consumers Union, Texas Legal Services Center, Texas Ratepayers' 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 documents, 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 use.  They also ask that the PUC's education campaign better inform consumers of their rights. http://www.chron.com/cs/CDA/printstory.hts/business/918674 

US LAWMAKERS PLEDGE TO COOPERATE ON ENERGY POLICY INITIATIVES - [Oil & Gas Journal Online, May 24.] Partisanship is being left at the door when it comes to energy policy, key energy lawmakers and Bush administration officials pledged Thursday. At a Senate energy panel hearing Thursday, featuring Energy Sec. Spencer Abraham, there was already a clear acknowledgement that the 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 committee have sponsored robust energy bills, and I am struck by how much common ground there is between these bills and our proposals."  Bingaman also concurred 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.com/articles/web_article_display.cfm?Section=OnlineArticles&ARTICLE_CATEGORY=TOPST&ARTICLE_ID=102093 

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


OF INTEREST * * * "OW, SUMMER'S COMING" - NEWPOWER DEBUTS NEW TEXAS PRINT ADS
	Beginning June 1, TXU, HL&P and other Texas investor-owned utilities must offer customer choice for up to five percent of their electrical load.  To date, NewPower has captured an average of roughly 40 percent of the available marketshare in the TXU/HL&P service territories.  We can, however, continue to sign up customers for the pilot as long as slots are available. 
	Last weekend, new NewPower advertisements began appearing the Dallas Morning 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 Guaranteed Savings Plan, offering consumers a guaranteed savings over the utility provider.  Another offer, the Peace of Mind Plan, locks in a fixed rate for two years.
	The Texas pilot will end when full regulation begins on January 1, 2002.
Guaranteed Savings Ad (Dallas Morning News example) 
 - N01NP003#12 3125x15.75.pdf 

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


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