Message-ID: <15728280.1075851645753.JavaMail.evans@thyme> Date: Fri, 21 Sep 2001 06:22:21 -0700 (PDT) From: neil.stein@csfb.com To: undisclosed-recipients@enron.com Subject: CSFB Power Gen Update: EIX Bankrptcy?--Implications for theIPPs Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Stein, Neil X-To: undisclosed-recipients X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Inbox X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst <> Good Morning Attached, please find our Power Generation Update issued this morning. 1. EIX Bankruptcy Filing?-Implications for the IPPs Recent press reports have suggested there is a growing likelihood that an involuntary bankruptcy petition will be filed against Southern California Edison, the utility subsidiary of Edison International (EIX, Not Rated). We thought it would be timely to analyze the implications of an SCE bankruptcy for the IPPs. 2. SCE Bankruptcy Would be Neutral for the IPPs Our overall conclusion is that an SCE bankruptcy would be neutral for the sector: A. Such an event would have no impact on the earnings estimates or forecasted growth rates for any of the companies under our coverage. B. In addition, none of the companies have any direct receivables exposure to SCE. C. Finally, we believe reserves taken against accounts receivable balances from the CalISO and PX across the sector adequately mitigate exposure to potential bad debt writedowns. 3. Updated Accounts Receivables Exposure Included Included in the note are updated details on the accounts receivables exposure of all the IPPs with California operations. Regards, Neil Stein 212/325-4217 This message is for the named person's use only. It may contain confidential, proprietary or legally privileged information. No confidentiality or privilege is waived or lost by any mistransmission. If you receive this message in error, please immediately delete it and all copies of it from your system, destroy any hard copies of it and notify the sender. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient. CREDIT SUISSE GROUP and each of its subsidiaries each reserve the right to monitor all e-mail communications through its networks. Any views expressed in this message are those of the individual sender, except where the message states otherwise and the sender is authorised to state them to be the views of any such entity. Unless otherwise stated, any pricing information given in this message is indicative only, is subject to change and does not constitute an offer to deal at any price quoted. Any reference to the terms of executed transactions should be treated as preliminary only and subject to our formal written confirmation.