POWER BRIEFS - June 1, 2001

POWER BRIEFS
FRIDAY, JUNE 1, 2001

* * * DELIVERING ON THE STRATEGY - On Tuesday, May 30th, NewPower celebrat=
ed a record-breaking day in customer sign ups. Between the Charlotte and He=
rndon facilities, and the company's outbound telemarketing efforts, NewPowe=
r booked more than 1,300 accounts for the day! Approximately 572 new custo=
mers called in to our center to come onboard for a gas plan, while approxim=
ately 390 called in for electric. Total (gas and electric) residential out=
bound telemarketing efforts for the day brought in approximately 287 new cu=
stomers, while outbound telemarketers enrolled approximately 63 new small c=
ommercial customers. Since August, NewPower has enrolled roughly 120,000 g=
as and electric customers. The count for the end of June is estimated at 1=
24,000 (this does not take into account Tuesday's remarkable results). Thi=
s is the beginning of great things to come for NewPower's marketing and cus=
tomer contact efforts. Please share the great news with contractors and c=
onsultants.

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.

CHENEY SAYS DESPITE SENATE SHIFT, LONG-TERM ENERGY POLICY NEEDED - [Oil & G=
as Journal, May 25.] US Vice-Pres. Dick Cheney Friday said policy makers s=
hould not yield to political expediency and continue ignoring the nation's =
long-term energy needs. http://ogj.pennnet.com/articles/web_article_display=
.cfm?Section=3DOnlineArticles&ARTICLE_CATEGORY=3DTOPST&ARTICLE_ID=3D102299

MASSACHUSETTS ELECTRIC FIRMS ASK REGULATORS TO RAISE RATES - [Boston Globe,=
May 26.] Two big utilities that serve electric customers in Central Massa=
chusetts yesterday filed for fuel charge increases for residential customer=
s. The rate increases being sought by Fitchburg Gas and Electric Light Co. =
and Massachusetts Electric Co. apply to "standard offer" service and follow=
the filing a week ago by NSTAR Electric for fuel charge increases in its s=
tandard offer and default service generation rates. Massachusetts Electric,=
a retail arm of National Grid USA in Westboro, also filed yesterday seekin=
g to increase its standard offer by the same amount -- 1.23 cents -- from 5=
.401 per kWh to 6.631 cents per kWh. The rate increase would add $6.15 to =
the monthly bill of typical residential customer using 500 kilowatts, pushi=
ng it from $56.54 to $62.69. http://www.newsalert.com/bin/story?StoryId=3DC=
oW8Qqaicr0WTruXfq1rssum&FQ=3D%22fitchburg%20gas%22&Nav=3Dna-search-&StoryTi=
tle=3D%22fitchburg%20gas%22=20

ELECTRICITY-CHOICE PROMOTION PROGRAM STUDY IN MISCUES - [Columbus Dispatch,=
May 27.] If you listen to the people who run Ohio Electric Choice -- the =
state's electricity-deregulation program -- the marketing plan has been a s=
uccess. According to one survey, 62 percent of Ohioans are aware of the pla=
n to allow them to choose their electricity provider. That compares with 38=
percent who knew of the plan before a multimillion-dollar public-relations=
and advertising campaign began last year. But in real terms, the $11.2 mi=
llion being spent statewide during the first 12 months of the five-year pla=
n doesn't seem to have produced many tangible results. So far, only 150,000=
residential customers in northern Ohio and 500 more in the central and sou=
thern parts of the state have switched suppliers. There's been more succes=
s with community-driven efforts -- and with little noticeable assistance fr=
om the statewide promotional dollars. http://libpub.dispatch.com/cgi-bin/do=
cumentv1?DBLIST=3Dcd01&DOCNUM=3D23614&TERMV=3D31224:6:31289:6:51808:6:

TEXAS PUC CHAIRMAN GAINS FEDERAL ENERGY POST - [Associated Press, May 27.] =
The Senate has approved President Bush's nomination of Pat Wood, chairman o=
f the Texas Public Utility Commission, to the Federal Energy Regulatory Com=
mission. Also approved for the panel was Nora Brownell, a member of Pennsy=
lvania's Public Utility Commission. The two were unanimously approved Frida=
y. http://www.dallasnews.com/politics/378308_wood_27nat.ART.html=20

POWER FIRM CHIEF LISTS SOLUTIONS FOR CRISIS - [Los Angeles Times, May 27.] =
Kenneth Lay, the head of Houston-based Enron Corp., handed out a four-page =
plan detailing his solution to California's energy crisis at a meeting with=
Los Angeles Mayor Richard Riordan and other state business and political l=
eaders at a Beverly Hills hotel May 17. http://enehou-dj01.corp.enron.com/v=
iewarticle.asp?folderid=3D8&AN=3DLATM0114700482=20

BIZ SCHOOL GRADS REDISCOVER ENERGY - [Reuters, May 27.] Getting a job in th=
e staid energy business hasn't exactly been considered the pinnacle of succ=
ess for ambitious business school graduates. Maybe it should be, since a n=
ational energy crisis makes conditions ripe for a resurgence of interest in=
the industry from both newly minted MBAs and experienced executives. http:=
//biz.yahoo.com/rb/010527/business_energy_jobs_dc.html=20

AGL TO SHUT OFF 4,000 MORE CUSTOMERS - [Atlanta Journal-Constitution, May 2=
9.] Nearly a quarter of a million Georgia households are on Atlanta Gas Lig=
ht Co.'s turnoff list, almost two months after expiration of a Public Servi=
ce Commission-ordered moratorium on disconnections of natural gas service. =
That's 16 percent of the 1.5 million homes and businesses in the state tha=
t purchase natural gas from unregulated marketers and are supplied through =
AGL's pipeline system. Most of the accounts on the disconnection list will =
never be actually turned off because customers will pay their bills or make=
payment arrangement with marketers. http://www.accessatlanta.com/partners/=
ajc/newsatlanta/0529gas.html=20

DON'T TURN BACK CLOCK, MASS. URGED - [Worcester Telegram & Gazette, May 29.=
] A bill would put Massachusetts on daylight-saving time year-round in an =
effort to save energy.=20
Proposed by state Rep. William G. Greene, D-Billerica, it comes as skyrocke=
ting electricity prices force California and other states to consider the c=
hange, too. http://www.telegram.com/news/page_one/savetime1.html=20

TAPPING POWER OF SUPPLY, DEMAND - [Philadelphia Inquirer, May 30.] Regulati=
ng markets so they are more efficient will always involve controversial iss=
ues and politically charged decisions. But those are the right issues to ar=
gue about. The real energy policy question should be how - not whether - to=
make the market work. http://inq.philly.com/content/inquirer/2001/05/30/bu=
siness/CASS30.htm?template=3Daprint.htm=20

COURT DECLINES ENERGY PRICE CAP - [Associated Press, May 30.] Gov. Gray Dav=
is threatened to sue the federal government for help in his state's power c=
risis after an appeals court declined to order energy regulators to cap who=
lesale electricity prices. http://cnniw.yellowbrix.com/pages/cnniw/Story.ns=
p?story_id=3D21142293&ID=3Dcnniw&scategory=3DUtilities=20

CALIFORNIA'S DAVIS PRAISES BUSH DIRECTIVE ON NATURAL GAS - [Oil & Gas Journ=
al, May 30.] California Gov. Gray Davis Tuesday praised President George W.=
Bush's directive to investigate high natural gas prices in the state, but =
confirmed they remained far apart on the "big enchilada" of temporary elect=
ricity price relief. http://ogj.pennnet.com/articles/web_article_display.cf=
m?Section=3DOnlineArticles&ARTICLE_CATEGORY=3DElect&ARTICLE_ID=3D102547=20

CUSTOMER SIZE, INCOME KEY TO DECIDING TO PARTICIPATE IN RETAIL CHOICE: NARU=
C - [Electric Power Daily, May 31.] Customer size and income are two key f=
actors affecting participation in retail choice programs for gas and electr=
icity. See p. 4 of the following link: http://home.enron.com/pubs/powerdai=
ly/data/powerdaily.05.31.2001.pdf=20

MEDIA QUOTE OF THE WEEK: "Admit it: The only comic relief in this energy c=
risis has been watching our leaders go at suppliers and each other like pro=
wrestlers or Jerry Springer guests." - Los Angeles Times, May 25, 2001=
=20

OF INTEREST * * * WHAT THEY'RE SAYING - FINANCIAL ANALYSTS ON THE COMPANY'S=
FIRST QUARTER 2001 RESULTS
"NewPower Holdings remains an attractive Long Term Buy as the first nationa=
lly branded provider of electricity and natural gas to residential and smal=
l commercial customers in the United States. Unlike traditional utilities,=
which have service areas defined by geography, NPW is targeting select opp=
ortunities in deregulated markets throughout the country? We believe this r=
emains an attractive high growth business proposition, particularly with a =
fully-funded business plan trading at approximately twice book value." - J.=
P. Morgan Securities Inc.

"NewPower continues to grow with lower-than-expected costs, driven by stron=
g growth in their Internet marketing efforts and their ability to acquire p=
ortfolios of customers at attractive prices?We like the concept. We think =
timing is right for investing in the newly emerging Competitive Retail Ener=
gy industry?Being a first mover in this business in very important. In our=
view, NewPower has clearly established itself as a credible first mover." =
- Salomon Smith Barney
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