TNPC Inc., the partnership formed by Enron Corp., IBM, and American Online Inc., to sell electricity and gas retail nationwide filed Friday for an initial public offering.
The company, formed in mid-May, estimates the value of the offering will be about $400 million. The proceeds from the offering to be underwritten by Donaldson Lufkin & Jenrette Inc. and other financial companies will be used to acquire customers, build infrastructure, and for general corporate purposes, according to the filing. Pricing and number of shares is yet to be determined.
TNPC will do business as the New Power Co., headquartered in Greenwich, Conn. At first, New Power will sell electricity and gas into only a few markets that are deregulated. But as deregulation continues to progress throughout the US, the company expects to enter the retail energy market nationally.
Enron, IBM, and AOL and other investors are the stakeholders in the new company. Enron says it will provide the company with access to its energy commodity pricing, risk management, and government regulatory affairs expertise.
Enron�s risk management technology will be an integral part of the enterprise. IBM will build, staff, and run the core components of the back office functions and help develop the e-business strategy. New Power has a 6-year agreement with AOL, under which AOL subscribers can select New Power as their electricity and natural gas utility provider in deregulated markets in the US.
They can also pay their utility bills online.
The company expects to complete its technical infrastructure with AOL by late summer and launch sales first in Pennsylvania and New Jersey in the second half of the year. A TNPC spokesperson did not return phone calls.