Note:  CERA is forecasting a weaker economy and weaker demand for power
and gas this year.


Subject: Western Energy--Power and Gas Prices and Volatility Expected to
Fall - CERA Monthly Briefing 



Title: Demand, Prices to Follow Trajectory of the Economy 	
URL(s):	

http://www20.cera.com/eprofile?u=35&m=2702;


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WESTERN ENERGY--POWER AND GAS PRICES AND VOLATILITY EXPECTED TO FALL

CERA expects a weaker US economy to be one of the outcomes of the tragic events 
on September 11, 2001, which will further reduce the demand for gas and power. 
Spot prices for natural gas and power already reflect this expectation, and 
CERA's outlook anticipates continued price weakness. 

*  As new supplies continue to arrive over the next year, even as demand 
weakens, the West will have more than adequate supplies of gas and power.
 
*  This surplus supply situation will put additional downward pressure on 
prices.

*  The shift from supply tightness to the recent plunge in prices can be traced 
principally to the rapid decline in demand for both gas and power this year, 
while supplies grew.

**end**

Follow above URL for complete report (9 printed pages).



E-mail Category: Monthly Briefing                                  
CERA Knowledge Area(s): Western Energy


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