Gexa Energy: Little marketer growing very fast

Gexa Energy is preparing to move into Pennsylvania and New Jersey and repeat the successful formula it's using in Texas, CEO Neil Leibman told RT.
     Gexa posted revenues in the third quarter of 2002 of 692% over the previous year's - $78 million compared to $9.8 million (RT, 11/17).
     Leibman expects this year's revenues to be between $250 million and $300 million on "minimal growth" and less than 1% of the market because it's "in the process of signing some affiliate and marketing deals that will drive customers to Gexa."
     Gexa's secret?
     "It wasn't magic," Leibman assured.
     Gexa focuses on small business and residential customers in all the Texas deregulated markets rather than the C&I clients many think are more profitable.
     "Our experience with C&I customers is that after you sign them, they're looking for next year's price."
     The smaller customers, Leibman said, sign one to two-year contracts, are less price-sensitive and looking for a local firm.
     Gexa (they say jexa) keeps the image of a local firm by using independent contractors and agents on a "grassroots basis."
     Gexa works with community groups, Leibman added, and instead of paying broker fees will make donations to local causes.
     Gexa doesn't advertise other than sponsoring a few soccer teams and buying billboards at local baseball fields.
     "Our motto is to have the lowest acquisition cost/customer," Leibman said.
     How low?