POWER BRIEFS - June 8, 2001

POWER BRIEFS
FRIDAY, JUNE 8, 2001

NEWPOWER IN THE NEWS - =20
NEWPOWER TESTS CONSERVATION TOOLS - [Philadelphia Business Journal, May 31.=
] The next time you forget whether you left the thermostat on, there's a ch=
ance you could turn it off with your cell phone. You could, that is, if y=
ou're from one of 300 households in Philadelphia that will participate in o=
ne of three pilot programs that will link electricity meters to the Interne=
t. http://philadelphia.bcentral.com/philadelphia/stories/2001/05/28/daily27=
.html=20

NEWPOWER SEES SAVINGS FROM SMART ENERGY TECHNOLOGY - [Reuters, June 1.] New=
Power said it will conduct three pilot programs in Philadelphia to test con=
sumers' reaction to "smart" energy saving technology. These new products r=
equire "smart"' meters that tell a "smart"' device to operate when the cos=
t of generating electricity is cheapest?" Energy restructuring leads to tec=
hnological innovation, efficiency and environmental benefits,"' said H. Eug=
ene Lockhart, NewPower's president and chief executive officer. "`These pi=
lots are a wonderful example of control being shifted from the utility to t=
he consumer. The nation's move to energy restructuring makes it possible fo=
r consumers to better manage their energy needs." http://biz.yahoo.com/rf/0=
10601/n0179210.html

ENERGY-SAVING TECHNOLOGY TO BE USED IN PILOT PROGRAM - [Philadelphia Inquir=
er, June 1.] NewPower said it would launch three residential pilot programs=
in Philadelphia this month, to gauge consumer response to energy-saving te=
chnology. The three programs will include 100 homes each and consist of a =
time-of-use metering pilot, a heating and air-conditioning control pilot, a=
nd a Web-based interactive pilot, which lets customers control their thermo=
stat from any Web-enabled device. NewPower said it wanted to learn how cons=
umers react to pricing and features of so-called demand-side management mea=
sures, and how to make them profitable. =09
NEWPOWER TO LEARN IMPACT OF HI-TECH METERS, CONTROLS ON CUSTOMERS LIVES - [=
Restructuring Today, June 1.] NewPower is taking the latest in DSM technolo=
gy to the people in an effort to see how they react?.Tim Vail, NewPower's v=
ice president of energy technology solutions, is not doing a technology bet=
a test. "We want to learn consumer acceptance and responses to the produc=
ts." A critical Vail target is learning how residential consumer lifestyle=
s compare with load profiles so test volunteers will have to fill out a num=
ber of questionnaires about what they were doing at a given time. The powe=
r 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 an=
d use - that's the critical component of restructuring," he added?"Educatio=
n is a major component of the whole piece for us," Vail said. =09

SAVING ENERGY IS HOT AGAIN - [Pittsburgh Post-Gazette, June 3.] Not since t=
he oil crisis of the 1970s has the public's interest in energy conservation=
seemed so high. Even President Bush touts the value of conservation, desp=
ite criticism from environmentalists that his administration's policies rel=
y too much on increased energy production and too little on energy efficien=
cy 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. . . A=
t least one company has leap-frogged over state regulators. NewPower began =
installing energy-saving technology in 300 households in the greater Philad=
elphia area. "These pilots are a wonderful example of control being shifte=
d from the utility to the customer. The nation's move to energy restructuri=
ng makes it possible for consumers to better manage their energy costs," sa=
id H. Eugene Lockhart, NewPower's president and chief executive officer. ht=
tp://www.post-gazette.com/businessnews/20010603conservebiz3.asp=20

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, gua=
ranteed for one year, by 5 percent and its variable price by 3 percent?NewP=
ower, a new entrant in Georgia's unregulated natural gas market, is offerin=
g to lock in a gas price of 74.9 cents per therm for two years. That compar=
es with one-year offers of 84.9 cents per therm from Georgia Natural Gas an=
d 76.9 cents from Shell Energy.=20

NEWPOWER TO START GAS SALES TO PG&E CUSTOMERS IN CALIFORNIA - [Bloomberg, J=
une 4.] NewPower is offering northern California residents two-year fixed-p=
rice 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, s=
pokeswoman Gael Doar said. http://www.bloomberg.com/fgcgi.cgi?T=3Dmarketsqu=
ote99_news.ht&s=3DAOxv3sBTUTmV3UG93 =20

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=3D16&spuid=3D16&indx=3D91011=
6&article=3Don=20

PRIX FIXE NATURAL GAS NOW AVAILABLE - [Contra Costa Times, June 5.] With a=
n offer of a two-year price guarantee, NewPower has set out to capture a po=
rtion of the retail natural gas market now served by the bankrupt utility u=
nit of PG&E Corp. http://www.contracostatimes.com/news/leads/stories_one/en=
ron_20010605.htm=20

NEWPOWER OFFERS FIXED RATES - [Gas Daily, June 5.] Gas customers in Pacifi=
c Gas & Electric's service territory can lock into a fixed rate with NewPow=
er, a subsidiary of New Power Holdings. The national gas and electric mark=
eter yesterday began to offer two-year fixed-rate to customers in several =
counties in Northern California. "NewPower is enormously pleased to provid=
e California consumers, who've been buffeted by volatile energy prices, wit=
h a stable gas contract," said Eugene Lockhart, president and CEO of The Ne=
w Power Co.
SELLING STABLE PRICES WORKS FOR NEWPOWER IN CALIFORNIA - [Restructuring Tod=
ay, 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 attractiv=
e until now. NewPower is going in selling a two-year fixed price package t=
hat really appeals in today's world of price spiking. The fixed price insul=
ates customers from price spikes in the volatile California marketplace. Ne=
wPower's Terri Cohen relates that the firm expects to sign up 16,000 custom=
ers. 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 th=
eir price monthly with a filing to the PUC based on what their costs have b=
een. NewPower's deal is available to retail customers in 37 northern Calif=
ornia counties, including San Francisco and Sacramento. Before the announce=
ment, NewPower already had 600,000 gas and electric customers in 19 markets=
.

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.

SURVEY SHOWS CUSTOMERS OVERWHELMINGLY FAVOR PRICE STABILITY - [Maxim Consul=
ting 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. T=
he results of the survey were recently presented to a group of utility exec=
utives and regulators at the New England Conference of Public Utilities Com=
missions. The survey shows that customers overwhelmingly prefer programs th=
at mitigate price volatility, such as fixed price and capped price programs=
. http://www.newsalert.com/bin/story?StoryId=3DCoXCtqbWbtKvgmdi0&;FQ=3D%22ma=
xim%20consulting%22&Nav=3Dna-search-&StoryTitle=3D%22maxim%20consulting%22=
=20

SHELL UNIT SIGNS DEAL ON NATURAL GAS PRICES - [Cleveland Plain Dealer, June=
2.] Shell Energy Services Inc. yesterday became the next big player in Nor=
theast Ohio's quickly changing utility services industry. The Texas-based =
subsidiary of Shell Energy signed a one-year deal with Northeast Ohio Publi=
c Energy Council to provide discounted natural gas to customers in NOPEC co=
mmunities across eight counties, beginning in September. http://www.clevela=
nd.com/news/plaindealer/index.ssf?/xml/story.ssf/html_standard.xsl?/base/ne=
ws/991474210115554.xml=20

9 CITIES UNITE FOR GREATER MIGHT - [Boston Globe, June 3.] Imagine if nine=
Massachusetts cities combined their muscle to lower their health-care prem=
iums and energy costs, and unify plans for affordable housing and developin=
g jobs. Those are among the hopes of city leaders who participated in a ne=
w 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 wo=
rk together. Possible areas of collaboration include joint purchasing and f=
orging common strategies. http://www.boston.com/dailyglobe2/154/north/9_cit=
ies_unite_for_greater_mightP.shtml=20

ON BUSH'S BRAND OF ENERGY DIVERSITY - [TIME.Com, June 4.] The Bush administ=
ration's national energy policy is meant to stimulate a national debate. It=
is certainly doing that. Whatever you believe about its recommendations, t=
he report is a surprisingly well-crafted overview of America's energy situa=
tion. http://www.time.com/time/business/printout/0,8816,128829,00.html=20

THE BATTLE OF CALIFORNIA - [Newsweek, June 4.] There are two dueling storyl=
ines for California's energy crisis. In the Gray Davis version a noble publ=
ic servant who inherited a flawed electricity deregulation scheme from his =
Republican predecessor is trying to defend California's shellshocked consum=
ers 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 t=
he White House. http://www.msnbc.com/news/582445.asp#BODY

ELECTRICITY USAGE SHRINKS BY 11% - [San Francisco Chronicle, June 4.] By tu=
rning off lamps, turning up thermostats and buying energy-efficient light b=
ulbs, the people of California helped reduce the state's electricity consum=
ption last month 11 percent below the May 2000 level, more than was expecte=
d, Davis administration officials said yesterday.=20
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/c/a/2001/06/04/MN183543.D=
TL=20

BINGAMAN, SENATE ENERGY CHIEF, WILL BLOCK BUSH PRODUCTION PLAN - [Bloomberg=
, June 5.] Bush opposes caps on energy prices; Bingaman is cosponsor of leg=
islation to impose caps on wholesale energy prices in California although, =
according to a spokesman, he'd prefer the Federal Energy Regulatory Commiss=
ion do that on its own.=20
Bingaman says rather than offer his own plan now, he'll try to sit down wit=
h Republicans and negotiate something both sides can agree on. http://quote=
.bloomberg.com/fgcgi.cgi?ptitle=3DEnergy%20News&s1=3Dblk&tp=3Dad_topright_e=
nergy&refer=3Dtopfin&T=3Dmarkets_bfgcgi_content99.ht&s2=3Dblk&bt=3Dad_posit=
ion1_energy&middle=3Dad_frame2_energy&s=3DAOxxZjBXlQmluZ2Ft=20

PREPAID POWER PROPOSED - [Associated Press, June 5.] Operators of the regio=
n's electricity grid recommended yesterday that consumers pay extra to ensu=
re that New England has enough electricity generation capacity. Federal re=
gulators 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 b=
y 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 ca=
pacity, they are forced to pay a "deficiency charge." http://www.telegram.c=
om/news/page_one/10nelectric1.html=20

ALARMED CALIFORNIANS CUT ELECTRIC POWER USE - [Washington Post, June 6.] Fe=
arful of blackouts and expensive utility bills, Californians have begun con=
serving electricity at a rate the state has rarely seen. New figures show =
that California residents and businesses reduced power consumption by 11 pe=
rcent in May. http://www.boston.com/dailyglobe2/157/nation/Alarmed_Californ=
ians_cut_electric_power_use+.shtml=20

CONSUMERS LAG ON ELECTRIC PRICE CURVE - [CBS MarketWatch, June 6.] Up to no=
w, many California electricity users have been opening their monthly bills =
and muttering to themselves: "What energy crisis?" Of course there have be=
en 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 en=
ergy increases are taking effect. http://www.marketwatch.com/news/story.asp=
?print=3D1&guid=3D{AD628F25-0EB8-4EA4-A8FB-E1617477E3D0}&siteid=3Dyhoo=20

MEDIA QUOTE OF THE WEEK: "What's more beneficial, move forward on the larg=
er agenda or trudge around through the mud on this? Why beat our heads agai=
nst the wall on price caps when we'll never be any closer on it? If we mov=
ed forward, it would look like a partisan bloodbath." - A GOP Aide, CNN, J=
une 6, 2001 http://www.cnn.com/2001/ALLPOLITICS/06/06/congress.energy/index=
.html=20

JUST 9 DAYS 'TIL FATHER'S DAY - THINK NEWPOWER - If you're planning on buyi=
ng 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 wi=
ll appreciate - energy efficiency and savings.
Saving on energy and energy efficiency have been a concern for most Dads, a=
nd "shut off the lights, I'm not made of money" has been roared by Dads nat=
ionwide. NewPower offers some Father's Day gift ideas that will light up hi=
s 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 b=
y up to 23 percent. It's great for the refrigerator, window air condition=
ing unit or gas clothes dryer. It's only $39.95, plus shipping and handlin=
g. It will pay for itself.
MoleculAir? Filters slip into the home heating and cooling systems where th=
ey capture allergy-causing particles, dust, pollen, pet dander and dirt tha=
t contaminate the air and clog the heating and cooling systems, often causi=
ng them to expend more energy. As an added service, Dad will get a bi-mont=
hly reminder (by mail or e-mail) to change the filters. The price of the f=
ilters 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 portab=
le outlet) with him. He can use it to jump-start his car or to recharge hi=
s 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 s=
mall-cap strategy (a small cap stock is defined by JPM as one with less tha=
n $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 2=
5 stocks that JPM considers "best-positioned companies" poised for immediat=
e appreciation, with a 12-month upside potential of at least 30 percent (tu=
rnover on the list occurs as warranted). Among the 25 stocks on the list i=
s NPW, The New Power Company, the only stock under the industry listing for=
"Electric Companies."=20
Please note, news such as this is included in POWER BRIEFS to inform employ=
ees about the performance of and "word on the Street" about our stock. New=
Power does not endorse any one brokerage firm.=20

# # #
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