Fwd: Meet the Head of the Leading Firm in Our Business

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From: "The Power Marketing Association" <pma-marketplace@mgfairfax.rr.com<
Date: Wed, 13 Dec 2000 08:16:28
Subject: Meet the Head of the Leading Firm in Our Business
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Meet the head of the leading firm in our business.

Imagine the opportunity!

Imagine that the leading energy company in the world has picked you to run
the company that it expects to be the leading retail energy company in North
America.

So you get a sharp competitive edge in the back room, you recruit IBM as a
co-owner assuring you the lowest cost per customer by a factor of two or
three.

To get your foot in 27 million doors you recruit AOL as a co-venturer with a
commitment from AOL to promote NewPower's wares. You do an IPO and take in
about $700 million for working capital. The IPO is over and the quiet period
it required. But the most important silver spoon -- so that you get your
energy at the best price and to protect you against price spikes -- you get
up front 30 Enron-trained risk managers and traders. Can you imagine
having to recruit them?

To make sure this team is run by the optimum chief they picked Eugene
Lockhart, most recently president of Consumer Services at AT&T and before
that president of BankAmerica's Global Retail Bank with its consumer,
commercial and small business banking services delivered through 3,000+
branches.

Now, Lockhart's talking about his plans.

Restructuring Today had lunch with Lockhart Thursday and reported in detail
(to read the full story see attachment):

? How NewPower intends to actually start up the retail industry? What is
the heart of NewPower's business plan?
? How they'll make money in markets where margins may seem too thin.
? How he's going to have 600,000+ customers next month and easily a million
by the end of 2001.
? What percentage of their sales come from the NewPower website. What
figure is he using for cost of customer acquisition?
? Lockhart plans to have by the end of the first quarter or at the latest
the second quarter 750,000 customers making them by far the largest
unregulated retail marketer in the US.
? How does he think utilities will compete with the NewPower paradigm?
? What marketshare do they expect to get at first and then by 2005?
? What does he see as his biggest challenge?
? Why is this a good time for NewPower to invade California markets?
? Why will NewPower succeed where Enron failed?
? What's the role of backward dating in forward market margins?
? Where NewPower gives a 20-25% discount on the commodity portion of a
bill, what kind of margin can it make now?
? How do higher prices help NewPower? "We're actually in a very good
position given (that) the gas cost increases perversely will work in our
favor ... "
? "We have a 10-year, exclusive agreement with IBM whereby we can issue a
bill, collect the money and care for a customer at lower cost than anyone
else in the industry by several orders of magnitude."

To read the full NewPower story see attachment.

- pmafup.pdf