Bruce A. Williamson, Dynegy Inc.’s new president and CEO, has two priorities he plans to accomplish in the next few days. The first, which he began Wednesday, is to meet with the employees — “face time,” said a Dynegy spokesman. His second priority is to meet all of Dynegy’s customers, with its top customer, ChevronTexaco, likely at the top of the list.

Williamson, 43, received a unanimous thumbs up from the company’s board of directors in his selection as Dynegy’s top gun last week, and he also was elected to the board. In his new role, Williamson is charged with developing and executing the company’s revamped business strategy. Dan Dienstbier will continue in a non-management role as chairman of the board.

Williamson basically hit the ground running last week, Dynegy spokesman David Byford told NGI . Inundated with requests to talk, Byford said Williamson wanted to meet every employee and explain to each of them that Dynegy had a strong future ahead of it. “He’s a good guy,” said Byford. “Everyone is really excited about having him here, and he’s very positive about the long-term leadership he wants to bring.” Byford said Williamson was sure that Dynegy had a vibrant future ahead of it, and although it will take time, he plans to be there as it happens.

“I accepted this position because I believe Dynegy can re-establish itself as an energy industry leader,” said Williamson. “The steps the company has taken to improve its financial condition and restructure the business will serve as a solid beginning in our efforts to build a new Dynegy.”

Williamson already has a substantial track record of success. The new CEO has 20 years of experience in energy and finance, spending the past five years in Houston in senior leadership positions with Duke Energy. Most recently, Williamson was CEO and president of Duke Energy Global Markets. In that role, Williamson was responsible for all of the Duke units’ global commodities and international business.

The relatively young executive is charged with pulling together a once vibrant and growing company, and restoring investor confidence. Williamson will oversee Dynegy’s transformation from former energy merchant leader to a business with four separate units: power generation, natural gas liquids, regulated energy delivery and telecommunications. Dynegy also will continue its energy marketing and trading, but on a much smaller level.

Byford said, “You can call it 25 different names,” but Dynegy will be buying natural gas and selling electricity for, among other things, its subsidiary Illinois Power. “It’s all about long-term contracts,” said Byford, and Dynegy plans to honor all of them. By far the largest and most lucrative deals are with Dynegy’s biggest customer, ChevronTexaco, which holds a 26.5% stake in the company.

Dynegy has had a business relationship with ChevronTexaco since 1996, and now markets all of ChevronTexaco’s natural gas in North America. Revised late last year, the long-term contract extends through Aug. 31, 2006, and Byford said Dynegy had every intention of honoring the terms of the contract (see NGI, Dec. 24, 2001). ChevronTexaco has not backed out of its support for Dynegy, confirming after former CEO Chuck Watson’s resignation that its support continued and that contracts remained valid (see NGI, June 24).

The oil major also stepped in to guide Dynegy after Watson resigned last May, securing ChevronTexaco Vice Chairman Glenn Tilton in the interim role. Two of its officers remain on Dynegy’s board as well. Besides the gas marketing contracts, the two companies have other substantial transactions still in play. Last fall, when Dynegy attempted the merger with Enron Corp., it was ChevronTexaco that provided the $1.5 billion equity stake to secure Enron’s Northern Natural Gas Co., in the event the merger failed.

Although spokesman Byford could not directly comment on Williamson’s schedule, he reiterated that the new CEO plans to meet with all of Dynegy’s customers, but he did not have a timetable of when any meetings may be scheduled.

In 1997, Williamson was appointed CEO and president of Duke Energy International, and was responsible for strategy, business development and asset management for all of the company’s international activities, including exploration and production, gathering and processing of natural gas, natural gas liquids marketing, gas transmission and power generation.

After Duke Power and PanEnergy Corp. merged in 1997, Williamson was named senior vice president of business development and risk management. Before the merger, he also was vice president of finance for PanEnergy, where he was responsible for corporate development, corporate-wide commodity risk management and strategic oversight of corporate treasury. Before joining PanEnergy, Williamson worked for Royal Dutch/Shell Group, advancing over a 14-year period to assistant treasurer of Shell Oil Co.

Williamson earned a bachelor’s degree in finance from the University of Montana and a masters of business administration from the University of Houston.

Dienstbier praised the appointment, and said Williamson had a “proven track record of building and sustaining successful businesses throughout his career. His industry knowledge, financial acumen and broad experience in commercial operations and customer relationships will provide the company with capable leadership as it continues to rebuild.”

The board also reported that Sheli Rosenberg, vice chair of Equity Group Investments, had resigned because of demands resulting from other commitments. She had been a board member since 2000. The board now has 10 members, including Williamson and two members representing ChevronTexaco.

In other news, U.S. District Judge Alvin Hellerstein in New York last week reversed the bankruptcy judge’s ruling, and said Enron Corp. shareholders could pursue their lawsuit against Dynegy for abandoning its merger last November. Judge Arthur Gonzalez, who is overseeing the Enron bankruptcy case, in April had blocked the shareholder lawsuit from going forward.

Dynegy and Enron agreed to a $92 million settlement over the failed merger in mid-August. In the settlement, Dynegy agreed to pay its former rival $25 million, as well as release nearly $67 million held in an escrow account for the Northern Natural Gas pipeline, which was ceded to Dynegy in January.

In a 13-page opinion, Hellerstein ruled that the alleged harm to Enron shareholders was different from that suffered by Enron. “Enron was to benefit from the merger agreement by having its debts assumed…Enron shareholders were to benefit by becoming shareholders of Dynegy. These are distinct and separate benefits; therefore, the injuries sustained by their loss are distinct and separate.”

Dynegy spokesman John Sousa said the company is reviewing Hellerstein’s decision, but noted that the company believes the judge’s interpretation of Texas law is not valid. “The opinion makes no ruling on the merits of the shareholders’ suits,” said Sousa. “We expect these cases to be dismissed.”

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