With lofty goals of becoming a nationally recognized leader inretail energy supply, The New Power Company, formed in May throughan alliance of Enron, America Online, IBM, and General Electric,filed with the Securities and Exchange Commission (SEC) on Fridayto launch an initial public offering of $400 million.

The initial public offering will be lead-managed by Donaldson,Lufkin & Jenrette Securities. Co-managers of the offering willbe Chase Securities, CIBC World Markets, Credit Suisse FirstBoston, PaineWebber, Salomon Smith Barney and DLJdirect. The newcompany has applied to be listed on the New York Stock Exchangeunder the ticker symbol (NPW).

The New Power Company got an initial capital infusion fromsponsors in excess of $120 million. The company recently purchasedColumbia Energy Group’s retail gas and power, mass marketingbusiness, which currently serves 300,000 retail energy customers ineight states. The transaction is expected to be completed by latesummer or early fall (see Daily GPI, July 5).

The company was formed in May with IBM as back office manager,Enron as energy supplier, and AOL as the key link to the smallcustomer marketplace. Most of Enron’s financial commitment to thenew company will be through value-in-kind investment. Enron isexpected to be responsible for providing energy commodity pricing,risk management and government regulatory affairs. IBM is buildingthe corporate infrastructure and web site and will man the callcenter. AOL will give The New Power Co. access to its 22 millioncustomers for six years. The company said that it would startsupplying customers in only a few markets later this year.

Enron holds a little over 51% of the company, GE Capital EquityInvestments owns 9%, California Public Employees’ Retirement System(CalPERS) has acquired almost 7.5%, and IBM owns 1% (see Daily GPI,May 17).

H. Eugene Lockhart, former president of AT&T ConsumerServices, president of Bank America’s Global Retail Bank and formerpresident and CEO of MasterCard International, was brought on boardas the new company’s CEO. Lockhart also was joined by a number ofhigh-level executives from the telecommunications and financialservices sectors, as well as several former Enron executives whospecialize in energy commodity pricing, marketing, risk managementand government regulatory affairs (see Daily GPI, May 17).

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.