Subject: Re: FYI
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 1 Jun 1999 07:02:00 -0700 (PDT)

How kind of you to forward this to me, slipping ever nearer as I have been  
to the precipice of  mental collapse as I stagger toward the  much needed two 
week vacation in early July.!    I'm forced to dig down into the repository 
of various mental stability enhancing  coping devices and come up with an old 
line from one of the songs that my Troubadour Quartet has been singing:  "My 
Anchor Holds."  Let the summer season begin and toss our frail bark upon the 
mighty commercial seas.  Let the waves smash over the quarterdeck.  --cgy 

Elizabeth Sager
06/01/99 01:20 PM
To: Christian Yoder/HOU/ECT@ECT
cc:  
Subject: FYI

FYI Stand ready, stand firm.
---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 06/01/99 03:19 
PM ---------------------------
From: Mark - ECT Legal Taylor on 06/01/99 12:24 PM
To: Elizabeth Sager/HOU/ECT@ECT
cc:  
Subject: FYI

Western Power Market Stands 'Poised on the 
Precipice' According to the ICF Kaiser Consulting
Group's 1999 Bulk Power Outlook

FAIRFAX, Va., June 1 /PRNewswire/ -- Power markets in the Western System 
Coordinating Council are ``poised on the
precipice'' of capacity shortfalls and extreme price volatility this summer 
and next, according to a new study of the regional
market by the Energy Practice of the ICF Kaiser Consulting Group. ``The West 
stands at least a one in three chance of
experiencing price spikes similar to those seen in the Midwest market during 
the summer of 1998,'' said Judah Rose, a Senior
Vice President with the Group and the director of the ICF study.

ICF's analysis of the West points to a number of key near-term implications: 

     Regional Capacity Deficits. The region is in a delicate supply/demand 
balance, with most sub-regions of the West relying
     on a capacity surplus in the Pacific Northwest to meet near-term peak 
capacity requirements. Because demand growth is
     outpacing new supply additions, those deficits will only become more 
extreme over the next two years.
     Volatility Exacerbated by Hydroelectric Dependence. A fifth consecutive 
year of above-average hydroelectric generation
     -- the principle cause of the Pacific Northwest surplus -- will again 
mask the West's precarious supply/demand balance in
     1999. However, if the drought conditions of the early 1990s resurface, 
the West will find itself at an even greater risk of
     price spikes.
     Upward Pressure on Prices. Prices are on an upward trend for 1999 and 
2000, the result of both higher regional spot
     natural gas prices and the increasing value of ``pure capacity'' -- the 
value of ensuring reliability for consumers. 

The study also evaluates the long-term future of the Western market and 
highlights the following key results: 

     Capacity Requirements Growing Steadily. The region's underlying demand 
growth is strong, creating a long-term regional
     capacity need totaling more than 18,000 MW by 2005, unless there is a 
serious economic downturn in the region.
     Energy Prices Trending Downward. The trend for long-term energy prices 
is for negative real growth through 2010, but
     the region will remain susceptible to near-term volatility while market 
institutions continue to evolve and new supply is
     slowly added over the next few years.
     Capacity Prices Rising Slowly. Current low capacity values will continue 
to rise (but still remain below many other
     regions) as new, more efficient generation is added.
     Strong Gas Demand Growth at Stable Prices. Gas demand for power 
generation is poised to more than double by 2010,
     with the most explosive growth in the Rocky Mountain and Southwest 
subregions. Even so, the West region's vast gas
     supply potential appears capable of meeting this growth with little, if 
any, real price appreciation through 2010. 

``The Western U.S. Region volume of our Bulk Power Outlook, along with the 
other five regional volumes, offers
comprehensive insights into the rapidly changing North American power 
markets,'' said Sudhakar Kesavan, President of the
ICF Kaiser Consulting Group. ``No other firm can match our analytic 
capabilities -- which are based on an understanding of the
fundamentals driving electric power markets -- and the knowledge gained from 
working one- on-one with the market's key
players.''

About the ICF 1999 Bulk Power Outlook

ICF's analysis of the Western market is part of the 1999 Bulk Power Outlook, 
an authoritative assessment of North American
regional bulk power markets through 2010. The study also provides the 
analytical basis for ICF's extensive and well-respected
consulting services providing market assessment, asset valuation, and project 
due diligence evaluations for the North American
electric power and natural gas industries. The 1999 Bulk Power Outlook is 
available for six regional markets -- West,
Northeast, Midwest, Southeast, South Central, and Canada -- well as a 
National Subscription, which includes the six regional
studies and a North American summary volume. Additional information on the 
1999 Bulk Power Outlook, including a
prospectus, sample volume, and order form, can be found at 
http://www.icfkaiser.com/consulting/products/BPS.htm.

The 1999 Bulk Power Outlook is part of the ICF Kaiser Consulting Group's 
growing family of products and services. Related
studies on energy and environmental issues recently completed by ICF include 
the SO2 Allowance Market Outlook and the
Ozone Transport Region: NOx Allowance Study, which detail ICF's views on air 
emissions allowance markets.

For information about the 1999 Bulk Power Outlook and related studies, or any 
of ICF Consulting Group's products and
services, call Aldyn Hoekstra at 415/507-7188 or Cheryl Aronson at 
415/507-7151. Additional information the ICF Kaiser
Consulting Group can be found on ICF's Web site at 
http://www.icfkaiser.com/consulting.

About the Company

Headquartered in Fairfax, Virginia, ICF Kaiser is one of the United States' 
largest engineering, construction, program
management, and consulting services companies. Its more than 4,000 employees, 
located in 60 offices around the world,
provide fully integrated capabilities to clients in four related market 
areas: environment, infrastructure, industry, and energy. ICF
Kaiser reported gross revenue of more than $1.2 billion for the 12 months 
ended December 31, 1998. All references to ICF
Kaiser indicate ICF Kaiser International, Inc. and any of its subsidiaries.

Forward-Looking Statements and Certain Factors Affecting ICF Kaiser and Its 
Businesses

This release contains ``forward-looking statements'' within the meaning of 
the Private Securities Litigation Reform Act of 1995,
which are identified by the use of forward-looking terminology such as 
``may,'' ``will,'' ``could,'' ``should,'' ``expect,'' ``believe,''
``anticipate,'' ``aim,'' ``intend,'' ``plan,'' ``estimate,'' or ``continue'' 
or the negative thereof or other variations thereof. Such
forward-looking statements are necessarily based on various assumptions and 
estimates and are inherently subject to various
risks and uncertainties, including risks and uncertainties relating to the 
possible invalidity of the underlying assumptions and
estimates, that may cause actual results to differ materially from those 
stated or implied by these forward-looking statements.
These forward-looking statements also are subject to company-specific risks 
and uncertainties such as the company's ability to
maintain existing contracts (including contracts with the federal government) 
at their existing or at improved levels, to accurately
estimate and recover costs incurred on fixed- price contracts, to sign new 
contracts in established or new markets (including
international markets), to conclude and implement successfully certain 
acquisitions and joint-venture relationships, and to avoid
significant environmental fines, penalties, or liabilities. 

SOURCE: ICF Kaiser Consulting Group