Message-ID: <29563183.1075845457747.JavaMail.evans@thyme> Date: Mon, 11 Dec 2000 09:32:00 -0800 (PST) From: daily@restructuringtoday.com To: daily@restructuringtoday.com Subject: Meet the head of the leading firm in our business Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: quoted-printable X-From: US Publishing X-To: "RT Reader" X-cc: X-bcc: X-Folder: \Greg_Whalley_Oct2001\Notes Folders\Discussion threads X-Origin: WHALLEY-G X-FileName: gwhalley.nsf 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= =20 the company that it expects to be the leading retail energy company in North=20 America. So you get a sharp competitive edge in the back room, you recruit IBM as a= =20 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=01,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 b= est price and to protect you against price spikes -- you get up front 30=20 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=20 Lockhart, most recently president of Consumer Services at AT&T and before that presid= ent of BankAmerica=01,s Global Retail Bank with its consumer, commercial and sm= all=20 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= =20 detail: * How NewPower intends to actually start up the retail industry? What is= =20 the heart of NewPower=01,s business plan? * How they'll make money in markets where margins may seem too thin. * How he=01,s going to have 600,000+ customers next month and easily a mi= llion by the end of 2001. * What percentage of their sales come from the NewPower website. What=20 figure is he using for cost of customer acquisition? * Lockhart plans to have by the end of the first quarter or at the latest= =20 the second quarter 750,000 customers making them by far the largest unregulated= =20 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=01,s the role of backward dating in forward market margins? * Where NewPower gives a 20-25% discount on the commodity portion of a bi= ll, what kind of margin can it make now? * How do higher prices help NewPower? "We=01,re actually in a very good= =20 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= =20 bill, collect the money and care for a customer at lower cost than anyone else in= =20 the industry by several orders of magnitude." We=01,d love to send you the two-story, detailed report on how the leading= =20 company in our industry is going to get there and stay there. Reply to daily@restructuringtoday.com and I'll rush you the two articles or= =20 call 1-800-486-8201. Subscribe today! Restructuring Today is the nations leading daily focused = on the convergence of electricity, natural gas, telecom and dot-com --=20 chronicling the creation of America's largest industry. If you fax the completed attac= hed order form to 1-202-298-8201, I'll make sure you don't miss a single vital= =20 issue. Cordially, Season Hawksley US Publishing 1-800-486-8201 daily@restructuringtoday.com - orderform.pdf