Message-ID: <10123565.1075851650809.JavaMail.evans@thyme> Date: Mon, 1 Oct 2001 05:16:23 -0700 (PDT) From: neil.stein@csfb.com To: undisclosed-recipients@enron.com Subject: CSFB Independent Power Weekly-Issue #45 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 the latest issue of our Independent Power Weekly. > > Summary: > 1. IPP's Rise 3.9% Last week our IPP composite increased 3.9%, > underperforming the NASDAQ (+5.3%) and the S&P 500 (+7.8%). Orion Power, > which was up 38.1%, was the strongest generator in the group. AES Corp > was the weakest performer, declining 47.1%. > > 2. Generation Oriented Utilities Fall 0.6% Our universe of generation > oriented utilities fell 0.6%, underperforming the NASDAQ and S&P 500, > while outperforming the UTY (-4.8%). Black Hills Corp, which was up 7.5%, > was the strongest performer in the group. PPL was the weakest performer, > declining 11.9%. > > 3. Some Good News and Some Bad News Last week saw considerable stock > price volatility as investors focused on 3 key events: 1. Reliant > Resources acquires Orion Power; 2. AES Corp. (Restricted) issues earnings > warning; and, 3. CPN reaffirms earnings guidance. > > 4. IPPs Trading 22% Below Private Market Asset Value We believe the > RRI/ORN transaction provides additional support for our private market > valuation framework. Our analysis indicates that as a group, the major > IPPs are trading at a 22% average discount to their private market asset > values. NRG Energy and Reliant Resources are trading at the most > significant discounts to their private market values--30% and 35%. We > believe the disparity between public and private market valuations is > unsustainable. > > 5. Power Market Update Last week power prices were down across the > country. Generally we continue to see a trend of power prices moving down > in "lock-step" with natural gas prices. While the Mirant National Power > Index fell 12% last week, the Natural Gas Week composite spot price fell > 13%. Also contributing to the weakness was seasonally mild weather ahead > of the normal October power plant maintenance season. > > 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.