Message-ID: <25191780.1075861766932.JavaMail.evans@thyme> Date: Mon, 26 Nov 2001 15:39:54 -0800 (PST) From: ei_editor@platts.com To: einsighttext@listserv.platts.com Subject: Transmission system needs quick fix Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: Energy Insight Editor X-To: EINSIGHTTEXT@LISTSERV.PLATTS.COM X-cc: X-bcc: X-Folder: \KHYATT (Non-Privileged)\Hyatt, Kevin\Deleted Items X-Origin: Hyatt-K X-FileName: KHYATT (Non-Privileged).pst Energy Insight News for Tuesday, November 27, 2001 Transmission system needs quick fix It's been called the "best investment a nation ever made." Throughout its history, it has enriched the country's quality of life, positioned the U.S. for international competitiveness and enhanced national security. The words describe the U.S. interstate highways, but substitute electrons for motor vehicles and it aptly portrays the country's "other" interstate system: its transmission system. If the national system of roads brought the country closer together and made it easier to get from "here to there," the nation's system of high capacity cables certainly has done the same. However, while the concrete and macadam highways have a method to fund repairs and to expand, no modern modus operandi currently exists to grow the wires system. With the ongoing industry restructuring and the shift from self-contained, vertically integrated fiefdoms with their own portions of the grid, no one wants to take the step of funding new transmission if the return on investment is low-or even uncertain. The Federal Energy Regulatory Commission first urged, then demanded, utilities give up control of their wires to regional transmission organizations (RTOs) to smooth out the transmission system, but even that mandate seems to be bogged down in the realities of such a massive endeavor. Read the entire story at http://www.energyinsight.com. Also, catch the latest news headlines on Energy Insight Executive, updated twice daily. /////////////////////////////////////////////// Market Brief Monday, November 26 Stocks Close Change % Change (from Wed.) DJIA 9,982.75 148.1 1.51% DJ 15 Util. 287.21 0.7 0.26% NASDAQ 1,941.23 66.18 3.53% S&P 500 1,157.42 20.4 1.79% Market Vols Close Change % Change AMEX (000) 136,544 24,142.0 21.48% NASDAQ (000) 1,723,091 146,534.0 9.29% NYSE (000) 1,088,376 65,707.0 6.43% Commodities Close Change % Change Crude Oil (Jan) 18.79 (0.17) -0.90% Heating Oil (Dec) 0.524 (0.010) -1.91% Nat. Gas (Henry) 2.717 (0.096) -3.41% Propane (Dec) 29.25 (2.25) -7.14% Palo Verde (Dec) 25.25 (1.00) -3.81% COB (Dec) 30.50 (1.00) -3.17% PJM (Dec) 26.70 (0.90) -3.26% Dollar US $ Close Change % Change Australia $ 1.928 (0.008) -0.41% Canada $ 1.60 (0.002) -0.12% Germany Dmark 2.22 (0.006) -0.27% Euro 0.8801 0.002 0.18% Japan ?en 124.1 0.900 0.73% Mexico NP 9.18 0.030 0.33% UK Pound 0.7078 0.0011 0.16% Foreign Indices Close Change % Change Arg MerVal 223.87 18.59 9.06% Austr All Ord. 3,284.70 12.20 0.37% Braz Bovespa 13759.53 965.74 7.55% Can TSE 300 7466.40 135.50 1.85% Germany DAX 5114.12 27.09 0.53% HK HangSeng 11391.96 218.04 1.95% Japan Nikkei 225 11064.3 403.22 3.78% Mexico IPC 5757.52 83.11 1.46% UK FTSE 100 5,302.50 (11.30) -0.21% Source: Yahoo! & TradingDay.com ////////////////////////////////////////////// Executive News Dynegy mulling renegotiation of Enron deal A source close to the Dynegy/Enron merger talks Monday afternoon said "all the parties in the transaction" are currently in discussions that could lead to a renegotiation of the deal. The source could not comment on what parts of the proposed deal were specifically under review. Enron's stock, down to just over $4/share at Monday's close, is about $6 below its price at the time of the $8.9 billion stock-for-stock deal announced Nov. 9, which valued Enron shares at roughly $10.85/share. A Dynegy spokesman said today that Dynegy was still conducting "due diligence". The source close to the talks acknowledged suggestions that other companies may have an interest in acquiring Enron. When asked if renegotiations of the deal were currently underway, the source re-emphasized that Dynegy is currently "talking to all the parties in the transaction." NAFTA panel urges study of power deregulation, pollution The North American Commission for Environmental Cooperation (CEC) wants the U.S., Canada and Mexico to address pollution issues before energy markets open up between the countries, officials with the international agency said Monday. "There is a momentum toward restructured North America energy markets, but what's missing is the environmental context," said Paul Miller, CEC's program manager for air quality. The CEC was created to act as an environmental watchdog as part of the North American Free Trade Agreement. The CEC officials noted Mexican power plants produce more pollution than ones in the U.S. and expressed concern that companies will build plants in Mexico to avoid tougher U.S. regulations, only to sell the power in the U.S. They said this might cause unduly high pollution in border areas. To subscribe to our Executive News Service, which is updated twice daily, log on to http://www.energyinsight.com, or contact Platt's Direct Response Team at 1-800-424-2908 (if outside the United States call 1-720-548-5700). ///////////////////////////////////////////////