The Balescu-Lenard theory of plasma kinetic equation is reformulated in such a way that the resulting collision term now conserves the sum of the kinetic and potential energy to the first order in the plasma parameter. The new collision term is expressed in terms of the instantaneous values of the single-particle distribution function and its fi~st derivative in time. § I. Introduction The collision term of the kinetic equation for a classical plasma, obtained originally by Balescu1l and Lenard, 2l takes explicit account of the dynamic screenc ing action of the plasma in the interaction processes of the charged particles; this has been a major improvement over the classical collision term of charged particles due to Landau.3l It is well known that the Balescu-Lenard collision term conserves the kinetic energy density as well as ~he number density and the mean velocity. This p~operty implies that the Balescu-Lenard collision term is relevant to describing the relaxation processes of an ideal-gas plasma only; in an isolated plasma containing a significant amount of interaction energy, the sum of the kinetic and potential energies should be c.onserved. It thus becomes important to reformulate the Balescu-Lenard theory so that the conservation law of energy may be properly taken into account in the relaxation processes of a nonideal plasma. Recently, a remarkable progress_ has been made in these directions by Klimontovich. He first analyzed the Boltzmann equation for an imperfect neutral gas and obtained a kinetic equation in which interaction is completely taken into account within the framework of the pair collision approximation. 4l He then proceeded to consider a similar kinetic equation for a plasma in a first approxi mation with respect to the plasma parameter ;5l the parameter, g=l/n).D 3 , where AD is the Debye distance, measures the discreteness of the particles c~ntained in the plasma. Because the effects of polarization brought about by the long range Coulomb interaction play an important part in the plasma, this problem is more difficult than that considered for the case of a neutral system. Klimontovich treated the problem through calculation of time evolution of electric-field fluctu ations in the plasma. We consider this problem of formulating the kinetic equation of a classical