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NGC Becomes 'Dynegy,' Reflecting Changing Energy Industry

NGC Becomes 'Dynegy,' Reflecting Changing Energy Industry

The changing face of the energy industry finally prompted NGC Corp. to change its name to something that encompasses electric power as well as natural gas and other commodities. NGC is now Dynegy, a name fashioned from the words dynamic and energy.

NGC began as a natural gas trading company in 1985 and is now a $13 billion energy marketing services company, with businesses including gas, power, crude oil and coal marketing; power generation; and natural gas liquids production and marketing. Most recently, the company made a series of regional alliances with utilities aimed at penetrating what is expected to become a $300 billion deregulated gas and electricity market throughout North America.

The new name and logo were rolled out at an event attended by more than 1,000 people in downtown Houston last week. The event included a multimedia presentation with a laser light show and was broadcast live over the Internet. When asked what the presentation cost, a spokeswoman demurely intimated "as much as two full-page ads in the Wall St. Journal," but she wouldn't give a dollar figure. The event was reminiscent of one held by Enron at the same downtown Houston hotel when the company changed its logo to the big "E" in January 1997 (See NGI Jan. 20, 1997).

"Given the changing scope of the company and the breadth of our strategic vision, we felt the time had come to change our name and logo to better reflect who we are today and what we will be tomorrow. The name Dynegy embodies our future vision, a dynamic company embracing the challenges of an energy marketplace opening to competition and people driven to perform beyond expectations," said Chuck Watson, Dynegy CEO.

The new logo is a tangram, a seven-piece puzzle invented in China more than a thousand years ago. The seven precise pieces of the tangram can be assembled in thousands of ways. The only limitation to the number of solutions is imagination. The puzzle is said to reflect a company with the ability to respond flexibly to its customers' needs, as well as the imagination to identify problems and create solutions that arise in providing energy services to a dynamic marketplace. Dynegy has trademarked three solutions of the tangram for use as corporate symbols. They depict a running person; a figure standing on its hands; and a square. The name and logo were developed from an extensive market and customer research campaign conducted by Anspach Grossman Enterprise, one of the nation's leading corporate identity consultants. The shapes in the logo should be familiar to anyone who has played the brain-teaser game Tangoes.

Watson said opportunities for the company to participate in an industry in transition, namely the electric power market, is similar to the situation the company found itself in its infancy. "NGC has been an industry leader in the reformation of the natural gas marketplace. I am certain that as the power industry follows this same course and continued convergence and retail access grows, Dynegy will once again be among the leaders. There is only one constant in our industry: change. Where some see uncertainty, we see overwhelming opportunity."

All subsidiary companies will operate under the Dynegy name: Natural Gas Clearinghouse and Electric Clearinghouse will be combined and named Dynegy Marketing and Trade; Destec Energy will become Dynegy Power Corp.; Warren Petroleum Company will be Dynegy Midstream Services, Limited Partnership; and NGC Oil Trading &amp Transportation Inc. will be named Dynegy Oil Trading &amp Transportation Inc.; NGC United Kingdom Ltd. and NGC Canada Inc. will be named Dynegy United Kingdom Ltd. and Dynegy Canada Inc., respectively.

Watson said bringing divisions such as Warren and Destec under the Dynegy name with the rest of the company actually will save money on supporting brand identities. One thing that will be going is "The Energy Store" tagline NGC had been using. "The Energy Store served us well for five years now. The Energy Store doesn't quite encompass everything that we are." Dynegy's advertising campaign will be focused on business to business advertising using trade journals and direct mail.

Shareholder approval of the name change is required and expected.

Joe Fisher, Houston

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