-----Original Message-----
From: 	"Colangelo, Maria" <Maria.Colangelo@ubsw.com>@ENRON   On Behalf Of "Abramson, Barry" <Barry.Abramson@ubsw.com>
Sent:	Monday, September 24, 2001 7:54 AM
To:	undisclosed-recipients:;@ENRON
Subject:	Electric Utilities - Weekly Update

KEY POINTS
This is our first Weekly Update since the terrorist attacks upon the United States last week.  We wish to express our
sympathy for all of the victims and their families.  We also want to express our appreciation for the heroic efforts of
all of the rescue workers who put themselves in danger in order to help others.

When the stock markets reopened this week, the utility stocks, in a broad sense, resumed their previous pattern of
trading.  Since August, the stocks of companies that have more of the characteristics of traditional utilities have
outperformed while the higher-growth electricity companies that are less regulated have been laggards.  These trends
continued last week.

Before September 11, the IPP stocks and the utilities with merchant generation, were losing value because of fundamental
concerns about lower wholesale power prices.  Also before September 11, the higher yielding, more traditional utilities
were gaining in value due to their defensive characteristics that were favored due to the slowing U.S. economy.

After September 11, it appears that investors driven by fear of the unknown and by greater concerns about a recession in
the U.S., have looked for safe havens in the higher yielding utility stocks.

Although higher yields are good for a portfolio in a period of market uncertainty, we think that the best values in the
electric group are in what we consider to be the over-sold merchant generating stocks, such as PPL Corp. (PPL-$37.00,
rated Strong Buy)[2], Duke Energy (DUK-$37.17, rated Strong Buy)[2] and NRG Energy (NRG-$15.50, rated Strong Buy).

We also favor a few of the seemingly over-sold diversified energy/convergence stocks, such as Dominion Resources
(D-$58.98, rated Strong Buy)[2] and NiSource (NI-$23.40, rated Strong Buy).

 <<WKLY10924.doc>>  <<WKLY10924.pdf>>


 - WKLY10924.doc 
 - WKLY10924.pdf 

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