Message-ID: <6840242.1075845440093.JavaMail.evans@thyme>
Date: Fri, 22 Dec 2000 00:30:00 -0800 (PST)
From: benjamin.morton@ssmb.com
Subject: California Regulators Back Rate Increase For Utilities
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
X-From: "Morton, Benjamin [EQRE]" <benjamin.morton@ssmb.com>
X-To: undisclosed-recipients:, 
X-cc: 
X-bcc: 
X-Folder: \Greg_Whalley_Oct2001\Notes Folders\All documents
X-Origin: WHALLEY-G
X-FileName: gwhalley.nsf

California Regulators Back Rate Increase For Utilities

* California regulators indicated yesterday that they are willing to
raise rates for electric utilities EIX and PCG,  following a review of their
finances
* Hearings to review utilities' financial status in hearings on Dec.
27 and 28
* KEY DATE:  January 4, when we expect they will vote to raise rates
* We see this action as positive for the utilities, because it reduces
the likelihood of insolvency or bankruptcy, although further action is
required, in our view
* We also see it as positive for our Growth Energy companies.  Any
reduction in financial pressure on the utilities equates to reduced pressure
to re-regulate the wholesale power industry, in our view
* The results of the action were in line with our expectation; we
recommend investors buy the Growth Energy names on weakness.  In particular,
we highlight DYN, CPN, NRG, SOE and DUK.

 <<CA Power Market II 12-22-00.pdf>>

Raymond C. Niles
Power/Natural Gas Research
Salomon Smith Barney
(212) 816-2807
ray.niles@ssmb.com

s




 - CA Power Market II 12-22-00.pdf