SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): January 23, 1997
K N ENERGY, INC.
(Exact name of registrant as specified in its charter)
Kansas 1-6446 48-0290000
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation or organization) Number) Identification No.)
370 Van Gordon Street
P. O. Box 281304
Lakewood, CO 80228-8304
Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (303) 989-1740
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Item 5. Other Events.
_______ _____________
On January 23, 1997 K N Energy, Inc. and PacifiCorp (NYSE: KNE and PPW)
announced the formation of an innovative joint venture, called en able,
which will provide a broad portfolio of products and services under the
Simple Choice brand. Simple Choice offers to utilities a single
package of energy, home-oriented, communication and infotainment
products and services which can be marketed under a licensee's own
corporate name. A copy of the press release, dated January 23, 1997,
is filed as an exhibit and incorporated herein by this reference.
Item 7. Financial Statements, Pro-Forma Financial Information and Exhibits.
_______ ___________________________________________________________________
(a) Financial Statements - None
(b) Pro-Forma Financial Statements - None
(c) Exhibits
1.1 Press release, dated January 23, 1997
EXHIBIT INDEX
_____________
Exhibit Number
Page Exhibit Description Page
______________ ___________________ ____
1.1 Press release, dated January 23, 1997 4
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
K N ENERGY, INC.
Date: January 23, 1997 By: /s/ Martha B. Wyrsch
__________________________
Martha B. Wyrsch
Vice President, Deputy General Counsel
and Secretary
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FOR IMMEDIATE RELEASE
Media Contacts: Ann Carter, PacifiCorp, (503) 464-6238
Mike O'Bryant, PacifiCorp, (503) 464-5654
Mark Stutz, KN Energy, (303) 914-4649
PacifiCorp and KN Energy Simplify The Marketplace For
Utilities and Consumers
Portland, Ore., Jan. 23, 1997 -- All across America, people will soon be able
to turn to their local utility to purchase home energy, telecommunications and
infotainment in one simple package thanks to an innovative joint venture
announced today by PacifiCorp and KN Energy, Inc. (NYSE: PPW and KNE)
The new company, en able, will provide a broad portfolio of branded products
and services that local utilities can offer to their customers. KN Energy,
an innovative gas company, and PacifiCorp, a global electric utility, predict
this venture will reshape the way utilities operate in the face of challenges
posed by the rapid restructuring of the energy industry.
en able will offer utilities a single package of energy, communication and
infotainment home-oriented options under the Simple ChoiceSM brand. These
services will be available in one convenient package on one bill served
through one customer service number. All Simple ChoiceSM products and
services are supported through a state-of-the-art customer service center in
Scottsbluff, Neb., where customers can call seven days a week, 24 hours a day.
In early January, PacifiCorp and KN Energy purchased 100 percent of Orcom
Systems, a privately held company in Bend, Ore. Orcom is a leader in
designing and implementing billing and information solutions for small and
medium-sized utilities. Orcom developed the current billing system for
Simple ChoiceSM products. Orcom runs on an IBM AS\400 technology platform
and has an existing Premier IBM Business Partner relationship.
(more)
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PacifiCorp/KN Energy Simplify the Marketplace
IBM will be expanding its Premier IBM Business Partner relationship with
Orcom to support Simple ChoiceSM. The relationship involves providing IBM
products, technology-related infrastructure and integration services which
will allow all Simple ChoiceSM services to be consolidated on one bill.
"This is a bold approach for the future," said Fred Buckman, PacifiCorp chief
executive officer. "We're providing utilities throughout the country with an
aggressive and competitive platform that will foster their success in a
changing environment."
Larry Hall, KN Energy chairman and chief executive officer, said, "Through
this joint venture with PacifiCorp, we will accelerate our leadership
position in the marketplace. Together, our approach is quite different: we
want to be partners and suppliers to other utility companies, as opposed to
those in our industry who are attempting to take over other markets and
customers."
Hall will serve as chairman of enable and named Mort Aaronson president and
chief operating officer. Prior to this position, Aaronson was president and
chief operating officer for KN Services Inc., a wholly owned subsidiary of
KN Energy. Ed O'Mara will serve as enable executive vice president.
O'Mara was previously PacifiCorp strategic marketing and planning vice
president. The company will be located in Lakewood, Colo.
"We were the first to market late last summer with a package of bundled
services through the Simple ChoiceSM brand, and we will continue to stay ahead
of the market through this joint venture," Aaronson said. "en able is a
viable company today, and we are open for business with today's announcement.
We invite other utilities to join us in the Simple ChoiceSM brand, because
Simple ChoiceSM is about leveraging a utility's most important asset --
its relationship with its customers."
The Simple ChoiceSM program has stimulated widespread interest from potential
partners and licensees. This partnership with PacifiCorp expands the
Simple ChoiceSM market to an additional 1.4 million electric customers in
seven states throughout the U.S.
(more)
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PacifiCorp/KN Energy Simplify the Marketplace
"Utilities facing restructuring today are looking for solutions to better
serve their customers, build loyalty and generate new revenue. The
Simple ChoiceSM product platform does that for them as they market these
services under their own corporate name. This product offering and its
billing capabilities are available today for utilities to begin creating
additional value for their customers," O'Mara added.
Partnerships and alliances have also been established with DISH NetworkTM,
a satellite entertainment company; Metricom's RicochetTM wireless modem and
Internet service; Frontier HomeSaverSM Long Distance service; MaxServ, which
provides home product repair; and DQE WeatherWiseTM, for "weatherproofing"
customers' energy bills.
en able is a limited liability company owned by PacifiCorp Holdings, Inc.,
and KN Services, Inc.
PacifiCorp Holdings Inc., is a wholly owned subsidiary of PacifiCorp.
It oversees business outside of regulated electric activity.
PacifiCorp is an investor-owned international electric utility and diversified
energy service company, with assets of $14 billion. Headquartered in
Portland, Ore., PacifiCorp is the third largest electric utility company west
of the Rocky Mountains. It serves 1.4 million customers in seven western
states through Pacific Power and Utah Power, and 546,000 customers in
Australia through its Powercor subsidiary.
KN Energy, Inc., based in Lakewood, Colo., is an integrated energy service
company with operations that include natural gas gathering, processing,
marketing, storage, transportation, energy commodity sales -- natural gas,
liquids and power marketing -- and innovative services designed for
consumers, utilities and commercial entities. It operates in 10 western and
mid-continent states, has more than 230,000 residential, commercial,
industrial and agricultural customers, and more than 6,000 miles of
interstate pipeline.
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