Subject: FW: CSFB Independent Power Weekly-Issue #31
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], edward.sac
Cc: [email-masked]
Date: Mon, 18 Jun 2001 12:13:00 -0700 (PDT)

-----Original Message-----
From: 	"Sifert, Bryan" <[email-masked]>@ENRON [mailto:IMCEANOTES-+22[email-masked]]  On Behalf Of "Stein, Neil" <[email-masked]>
Sent:	Monday, June 18, 2001 6:11 AM
To:	undisclosed-recipients:;@ENRON
Subject:	CSFB Independent Power Weekly-Issue #31

Good Morning,

Attached, please find the latest issue of our Independent Power Weekly.

 <<IPW061801.pdf>>

Summary:
1. IPPs Fall 5.1%   Last week our IPP composite fell 5.1%, outperforming the
NASDAQ (-8.1%), but lagging behind the S&P 500 (-4.0%).  AES Corp. was the
strongest performer in the group, rising 3.8%.  NRG Energy was the weakest
performer, falling 11%.

2. Investors Focus on Today's FERC Meeting   Putting pressure on stock
prices, investors expressed concern regarding the FERC's special upcoming
meeting, scheduled for today (6/18).  At today's meeting the commission is
expected to extend the scope of its previous April 25 California market
mitigation order.  In particular, we expect FERC to: 1) Extend floating
power price caps to all hours; and, 2. Extend floating caps to other western
states.

3. Minimal Impact on IPPs   We believe the expansion of the FERC's current
market mitigation plan will have an immaterial impact on the Independent
Power Producers with California exposure-AES, CPN, MIR, NRG, and RRI.  Our
reasons are as follows: 1) The bulk of their capacity is sold forward; 2.
The FERC's methodology is benign; and, 3) Valuations already reflect
political uncertainty and normalized power prices.

4. NRG Hosts Conference Call On Friday (6/15), NRG hosted a conference call
to address investor concerns surrounding near-term equity needs, pending
acquisitions and recent regulatory developments.  On the call management
noted that: 1) Barring a major acquisition, it will not issue equity in the
near-term; 2) NRG's pending acquisition of 1,767 MW of generation capacity
from Conectiv should close by June 30; and, 3) Expansion of the FERC's
Western market mitigation measures should not impact NRG's performance.
Also on the call, management reaffirmed its previous 2001 EPS guidance of
$1.35. .  Trading at 13.2 times our 2002 estimate versus a group average of
16.1 times, NRG represents the best relative value in the IPP group.  We
believe this discount is unwarranted and reiterate our Buy rating and $37
price target.

5. Review of ORN Analyst Conference   On Tuesday (6/12), Orion Power hosted
its first major investor conference in Baltimore, Maryland.  The meeting
featured presentations from 10 senior managers.  We do not believe investors
were previously aware of the full breadth and depth of the management team.
While no major announcements were made, the meeting served to confirm that
ORN is on track to achieve its strategic and growth objectives.

6. Coverage of GEG Initiated with a Buy Rating   On June 11, 2001 CSFB
initiated on Global Power Equipment Group (GEG) with a Buy rating and a
twelve-month price target of $42.  We co-cover GEG with John McGinty--CSFB's
machinery analyst.

Regards,

Neil Stein   212/325-4217
Bryan Sifert   212/325-3906

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 - IPW061801.pdf