INSIDE TRACK: Saving up for a rainy day: WEATHER RISK MANAGEMENT: This week's 
storms have prompted businesses to face up to the need to hedge against 
changes in the climate, says Toby Shelley:
Financial Times, Nov 2, 2000
		
		Arena foes, supporters battle it out 
		HOUSTON CHRONICLE, 11/02/00
		
		Azurx Shareholder sues over deal's price
		Houston Chronicle, 11/02/00
		
		'Big-picture' strategy gives C.I. Global edge Growth-oriented, diversified 
fund delivers on all fronts
		The Globe and Mail, 11/02/2000

		Calif Generators See FERC Ruling As Step, Not Solution
Dow Jones News Service, 11/01/00
		
		IN THE MONEY: Enron Looks To Un-Dip Its Toe From Water
Dow Jones News Service, 11/01/00
		
		USA: Transwestern N.M. gas line cut 25 pct on train derail.
Reuters English News Service, 11/01/00
		
		US Natural Gas Cash Prices End Up On Arbitrage Spreads
Dow Jones Energy Service, 11/01/00
		
		
		
		INSIDE TRACK: Saving up for a rainy day: WEATHER RISK MANAGEMENT: This week's 
storms have prompted businesses to face up to the need to hedge against 
changes in the climate, says Toby Shelley:
Financial Times, Nov 2, 2000, 763 words

		As emergency services brace themselves for more gales after the worst storms 
since the hurricane of 1987, businesses and the public are beginning to 
realise what climate change means: not just flood damage but also disruption 
of infrastructure and transport. 
		The Association of British Insurers says the bill for Sunday's storm will 
amount to hundreds of millions of pounds. This comes on top of last month's 
flood damage in Kent of Pounds 40m-Pounds 80m. Bad weather cost insurers 
Pounds 861m in 1999. 
		While the costs of flooding are fairly easy to quantify, the financial burden 
in terms of business forgone is less obvious. Swimsuit and umbrella 
manufacturers face an obvious weather risk (although a company making both 
would be nicely hedged), but so do 70 per cent of all companies, according to 
industry experts. 
		As awareness of such risks increases among shareholders, chief executives are 
less able to use the climate as an excuse for lower profits. As a result, a 
growing number of companies are developing weather risk management using some 
of the many instruments now available (see below). 
		Europe is catching up with the US in developing mechanisms and tools to help 
companies manage such risk. The London International Financial Futures 
Exchange aims to launch weather futures contracts early in 2001; Societe 
Generale is developing weather hedge funds; Enron, the US energy and trading 
group, is launching another 17 sites in Europe around which to trade weather 
risk; and Weather Risk Marketing is putting together an insurance programme 
in the London market, aimed at FTSE 200 companies, with capacity of Pounds 
100m per customer. 
		The global market in weather risk derivatives is valued at Dollars 
3bn-Dollars 8bn (Pounds 2bn-Pounds 5.5bn) and is mainly in the US. 
		Gas and electricity market deregulation provided the impetus for UK energy 
companies to enter the weather derivates market. Centrica, the UK-based 
energy supplier, is particularly enthusiastic. Given a "normal" winter in 
1999, Centrica's profits would have been Pounds 24m higher. 
		Thor Lien, Enron's senior weather derivatives trader in Europe, values the US 
market at about Dollars 3bn and believes growth next year in Europe could 
double that. But there are a number of imbalances in the current market and 
brakes to further development. 
		The very enthusiasm of the energy sector means demand for derivative hedges 
against warm winters far outweighs demand for hedges against cold winters. 
		Nick Ward, weather risk broker at Spectron Futures, says higher winter demand 
can leave the current derivatives market with characteristics of an insurance 
market where risks have to be absorbed. 
		Lack of liquidity in the market is limiting business, according to some, 
although Mr Ward says the derivative market can look at Pounds 50m risks. An 
active hedger agrees: "The derivatives and reinsurance markets are certainly 
developing, with some larger transactions, which may be in the tens of 
millions, being explored. Most deals, however, remain relatively small in 
comparison with the overall level of risk that could be transferred in these 
markets." 
		SocGen is the only bank to have committed itself thus far to the weather risk 
market and is developing a Dollars 145m hedge fund activity in Europe and 
Asia. Diego Wauters, global head of insurance derivatives, says his team 
often closes two or three deals a week worldwide. It has done about 60 deals 
globally over the last 12 months, 70 per cent of them weather risks. 
		Data pose a problem for some companies. Rob Preston, a director at Speedwell 
Weather Derivatives, says the cost of access to UK weather data from the 
government-owned Meteorological Office may be restricting the take-up of 
weather risk management by smaller companies. For data from a local weather 
site, the Met charges Pounds 1,500 for temperature and the same again for 
rainfall. 
		Another significant brake on market development is lack of awareness. Even 
where treasurers are persuaded of the value of hedging weather risks, selling 
the idea to the board can be difficult. 
		Peter Blogg at Liffe does not expect a flood of interest when futures 
contracts begin trading. Rather, the plan is to establish them as benchmarks. 
At a conceptual level, protecting profits from the weather is accepted by 
many chief executives but few are putting weather risk management into 
practice. 
		David Gamble, executive director of Airmic, the UK risk managers' 
association, says there is a growing interest in the area, although few 
non-energy companies have taken an interest so far. Retailers such as 
Sainsbury and Tesco have no involvement, nor does Railtrack, the notoriously 
weather-prone rail operator. Cargill, the global trading house, is active in 
the US but maintains only a watching brief in Europe. 
		The future structure of the emerging market remains unclear. Mr Preston 
foresees a two-tier basis: a primary market in tailored deals accepted by 
insurance and capital market companies; and a secondary market in wholesale 
traded risks appealing to insurers and energy companies. 
		For Enron, Mr Lien sees a rapidly growing wholesale market in Europe with the 
extremes covered by insurers who will, increasingly, be able to hedge their 
exposure on the derivative market. He says that big exposures require 
syndicated insurance at present but in six months' time the derivatives 
market will have more liquidity. 
		Copyright , The Financial Times Limited




Nov. 2, 2000, 9:23PM
HOUSTON CHRONICLE
Arena foes, supporters battle it out 
By JANETTE RODRIGUES 
Copyright 2000 Houston Chronicle 
With less than a week to go before the arena referendum is put to a vote, 
supporters and foes put aside any niceties in favor of bare-knuckle brawling 
during a debate Wednesday. 
Both sides spent a lot of time pitching, spinning and trying to persuade 
members of The Greater Heights Area Chamber of Commerce, which sponsored the 
event. 
The debate started out in classic point-counterpoint style, with a panel of 
Houston television news anchors asking the questions. But both sides quickly 
went into attack mode. 
In the pro-arena corner were Harris County-Houston Sports Authority Chairman 
Billy Burge and Don Jordan, the co-chairman of Let's Build It Together, the 
pro-arena campaign group. Opposing them were Metropolitan Coalition President 
DeWayne Lark and conservative activist Bruce Hotze. 
"Les Alexander gets all the benefits," Hotze said. "If this was a marriage it 
wouldn't last a week. It is not a good deal." 
Burge retorted: "Mr. Hotze, you sound like Bill Clinton -- a half-truth is 
the blackest lie of all." 
After a few of Hotze's anti-arena comments received applause from the 
audience, Jordan chided some of those gathered. 
"You can be very confused and ... clap about the statements that are being 
made to you that aren't exactly accurate," he said. "That is one of the 
benefits of being here today. You can look beyond some of the advertising 
that has gone up, 90 percent of which is incorrect." 
Later, the event got even more colorful after KTRK-Channel 13 anchor Bob 
Boudreaux asked anti-arena activists what they knew about the deal that 
fiscally conservative U.S. Rep. Bill Archer, R-Houston, didn't know. Archer 
is appearing in the pro-arena campaigns' most recent television commercials. 
"I think the pro-arena campaign has been a Clinton-esque campaign of 
misstatements and misleading, and I think they have told people that the 
Rockets are going to pay their fair share," Hotze said. "They pay nothing up 
front. I think if Bill Archer knew all the facts, Bill Archer would not come 
out and endorse this." 
Jordan responded: "That's an incredible statement. The only thing I know 
about that might be more incredible than what you just heard is if anybody 
out there believed it. Bill Archer knows what's going on about this arena 
down here." 
Opponents accused pro-arena forces of doling out corporate welfare at 
taxpayers' expense, while proponents repeatedly criticized arena opponents' 
statements as misleading and inaccurate. 
Backers of the arena say it would spur downtown development, strengthen the 
economy, boost good feelings about the city and cement Houston's position as 
a world-class city. 
Lark said that he supports a new arena, but that taxpayers shouldn't have to 
foot the bill -- especially when a billionaire sports team owner stands to 
benefit the most from the deal. 





Nov. 2, 2000, 12:12AM
HOUSTON CHRONICLE
Briefs: City and state 
Azurix shareholder sues over deal's price
A shareholder has sued Azurix Corp. and its parent Enron Corp. on grounds 
that a $275 million plan to take Azurix private undervalues the water 
company's shares. 
Azurix spokeswoman Diane Bazelides said the company has not been served with 
the papers and therefore is unable to comment on the lawsuit. 
Houston-based Enron last week offered to provide financing to let Azurix 
purchase its shares at $7 apiece. Enron owns a little more than a third of 
the water company it created two years ago and controls another third through 
an investor group called Atlantic Water Trust. 
In one of six lawsuits filed in Delaware Chancery Court, Azurix shareholder 
Thomas Turberg says Enron and Azurix's directors have violated their duties 
to shareholders by agreeing to purchase the shares at a price that is less 
than the water company is worth. 
The defendants are trying to use their control of Azurix to force 
shareholders "to sell their equity interest in Azurix at an unfair price, and 
deprive Azurix's public shareholders of maximum value to which they are 
entitled," the suit says. 
Turberg asks the judge to grant class-action status to his case, stop the 
transaction and award damages and legal fees. 
Enron shares rose $1.19 to $83.25, while Azurix shares fell 19 cents to 
$6.06. Azurix's shares have fallen more than 80 percent since Enron took the 
company public last year. 


Report on Mutual Funds Special Report
15-Year Review of Mutual Funds FUNDSCOPE
'Big-picture' strategy gives C.I. Global edge Growth-oriented, diversified 
fund delivers on all fronts, Gordon Powers says
Gordon Powers
SPECIAL TO THE GLOBE AND MAIL

11/02/2000
The Globe and Mail
Metro
M3
All material copyright Thomson Canada Limited or its licensors. All rights 
reserved.

Lured by historically stronger returns and a recent increase in RRSP 
foreign-content limits, Canadian investors have poured a record $39-billion 
into foreign securities so far this year. 
And thanks to some excellent performance and strong brand loyalty among 
financial advisers, a fair chunk of this exodus has been heading into several 
funds sponsored by C.I. Mutual Funds Inc.
Consider the $3.2-billion C.I. Global Fund. Under the tutelage of long-time 
manager William Sterling, the 14-year-old fund returned 21.1 per cent in 
1997, 26.2 per cent in 1998 and 37.1 per cent last year. 
Over the 10 years ended Sept. 30, these strong numbers propelled it to a 
stellar compound average annual rate of return of 17.7 per cent, well above 
the 13.7-per-cent average of its global equity-fund peers. 
Against a backdrop of rising inflation, technology jitters and potential 
interest-rate hikes, however, the fund has been struggling more recently. 
Year to date, it has delivered barely a break-even return. 
Despite this recent blip, though, fund analyst Stephen Kangas, managing 
editor of Toronto-based Fundlibrary.com, calls mammoth C.I. Global a 
"must-have" fund. 
"Bill Sterling's big-picture strategy and [co-manager] Stephen Waite's 
stock-picking have worked to put this fund not only in the first quartile but 
right up there as a core offering within the global category," Mr. Kangas 
says. 
Mr. Sterling and his team, most recently working for C.I. through independent 
Credit Suisse Asset Management LLC, now have a major stake in a new 
portfolio-management partnership, New York-based C.I. Global Advisors LLP, 
that manages several funds in the Toronto-based C.I. family. 
This new partnership "means the management group is in place for the long 
haul," says Mr. Kangas, who favours arrangements where managers have equity 
stakes. 
Driven by the big-picture themes outlined in his appealing book, 
Boomernomics, and using discounted cash flow as his primary yardstick, Mr. 
Sterling has created a growth-oriented, broadly diversified fund that seldom 
has much in common with its benchmark, the Morgan Stanley World index. 
It generally contains about 140 stocks, with the largest holding limited to 
roughly 3 per cent of the portfolio and the top 10 stocks representing no 
more than 20 per cent of the pie. "You really can't do it any other way," Mr. 
Sterling says. "When it comes right down to it, nobody really knows who's 
going to win all the battles. With technology in particular, you have to take 
a much broader view." 
Similarly, although currency movements are always a factor in any global 
fund, Mr. Sterling makes little attempt to hedge his dollar exposure, 
preferring to use it as another key criterion in determining his country 
choices. "We're much more likely to back an exporter who's going to benefit 
from a sliding currency than to try and play the currency itself. That's 
really where you're going to benefit." 
Although still sporting a positive outlook for the long term, Mr. Sterling 
has been trying to reduce the risk in the portfolio in recent months. Despite 
the increased promise of an economic soft landing in North America, he still 
worries that U.S. corporate profits may fail to meet expectations. 
"We've been feeling a bit defensive for a while now. As long as central banks 
are raising rates -- and we think one or two quarter-point hikes in the U.S. 
are still likely -- you're going to see continued volatility and uncertainty, 
particularly in U.S. technology stocks." 
Consequently, he's reduced the fund's holdings in the United States and, to a 
lesser extent, in Europe. Right now, the fund has 52 per cent of its stocks 
in the United States, 21 per cent in Europe and 7 per cent in Japan, with 
roughly 13 per cent in cash. That's a far cry from the beginning of the year, 
when the fund had roughly two-thirds of its money south of the border and 
very little cash on hand. 
Over the past 18 months, U.S. tech stocks have swung dramatically, almost 
twice as much as the rest of the market. As a result, the securities of many 
technology companies are priced more like options than stocks, Mr. Sterling 
says. "And that means likely more volatility, rather than less. Prudent asset 
allocation suggests that you diversify away from an asset class as its 
volatility increases. Despite the very real merits of the sector, investors 
shouldn't have all their eggs in some high-tech basket." 
Although technology still plays a significant role in the fund -- big 
holdings include PMC Sierra Inc., Broadcom Inc., Vodafone Airtouch PLC and 
Cisco Systems Inc. -- Mr. Sterling quickly points to what he calls "the 
leopards" within the fund's largest holdings. 
Companies such as Corning Inc. are an increasing force in fibre optics, and 
ones such as utility giant Enron Corp. are "changing their spots and looking 
for new ways to succeed. But, unlike many younger tech companies, they still 
make money in the process," he says. 
For conservative investors looking to diversify their holdings, the fund is 
"definitely a core fund for most portfolios," Mr. Kangas says. 
"Put this C.I. fund together with, say, a strong offering like AGF 
International Value, and you've got an excellent foundation to build upon. 
Lower risk, strong returns, broad diversification -- I think this fund has 
really delivered on all these fronts. Highly recommended." 
C.I. Global 
Category: Global equity Manager: William Sterling Load status: Optional Total 
assets: $3.2-billion Management expense ratio: 2.4% 
Globe 5-star rating: ***** Returns to Sept. 30, 2000 1-month simple rate of 
return: 0.5% 3-month simple rate of return: 1.1% 6-month simple rate of 
return: 0.0% 1-year compound annual rate: 39.0% 2-year compound annual rate: 
29.1% 3-year compound annual rate: 20.5% 5-year compound annual rate: 20.2% 
10-year compound annual rate: 17.7% Top 10 holdings To Sept. 30, 2000 
1. Corning Inc 3.4%


2. Network Appliance Inc 2.0


3. General Electric Co 1.9


4. Microsoft Corp 1.8


5. PMC-Sierra Inc 1.7


6. Vodafone Airtouch Plc 1.7


7. Cisco Systems Inc 1.6


8. Enron Corp 1.6


9. Citigroup Inc 1.5


10. Skandia Foersaedrings AB 1.5
Telephone: 1-800-563-5181 Breakdown by country 
USA 52.1%


Israel 0.1%


South Africa 0.5%


Canada 2%


Japan 6.8%


Cash 12.9%


Other 25.6%

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Calif Generators See FERC Ruling As Step, Not Solution
By Christina Cheddar

11/01/2000
Dow Jones News Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

Of DOW JONES NEWSWIRES 

NEW YORK -(Dow Jones)- California's power generators think federal regulators 
took a big step toward improving what they see as a flawed market for 
wholesale electricity, but may have stopped short of total solution.
Earlier Wednesday, a committee formed by the U.S. Federal Energy Regulatory 
Commission released recommendations to revamp the Golden State's power 
market. 
The recommendations sprung from a probe conducted by the committee that 
sought to explain why California power prices tripled this past summer. 
Overall, companies supplying power to the state applauded the committee's 
finding that market manipulation by power generators in the state wasn't to 
blame, as some consumer groups had charged. 
FERC is the third agency to agree that there was no price collusion in the 
market this summer, said Duke Energy Corp. (DUK) spokesman Tom Williams. 
Company officials also said they were pleased by the agency's recommendation 
that California should allow its three utilities to buy power from a variety 
of suppliers and buy power in the forward markets. 
Previously, the utilities were required to buy and sell all power through the 
state's Power Exchange at market prices. 
The previous requirement, which bound the utilities to one supplier, 
effectively created another monopoly, said Enron Corp. (ENE) spokesman Mark 
Palmer. 
"Utilities should be able to manage their own price risk," Palmer said. 
Williams Cos. (WMB) spokesman Tim Thuston agreed. He said his company had 
been advocating this change, and was pleased to see it included in the 
agency's recommendations. 
However, generators did raise concerns over a so-called soft cap. Under the 
provision, a supplier who sells power above $150 a megawatt would be entitled 
to receive the bidding price, however, the supplier would have to file 
several reports to the FERC. 
Previously, all bidders in a single-price auction had to pay the highest bid 
paid, which was otherwise known as the market clearing price. Under the 
committee's recommendation, the market clearing price will never exceed the 
$150/MW cap. 
The companies also were concerned about a provision that could lead to 
refunds after October 1. 
Reliant Energy Inc. (REI) spokesman John Stout a two-year refund window is "a 
cloud hanging over the market." 
During Stout's initial review of the voluminous FERC report, he said he 
wasn't able to determine exactly how the FERC would establish what is the 
right price for power. 
He said Reliant would be paying attention to this provision, which he said 
could have broad implications for the companies who operate in the state. 
Other officials also noted that sometimes power is traded several times 
before it reaches its end-users. In those cases, how would refunds be 
determined, officials asked. 
In sharing their initial reactions to the 100-page report, company officials 
agreed there is still much work to be done. Officials said they plan to make 
additional recommendations to the state's agencies in the days ahead. 
The changes in the California power market are sure to affect the strategies 
of the state's power generators. 
Enron has already decided to back off plans to install 300 megawatts of new 
generation in the state next spring, said Enron's Palmer. The generation was 
part of a project proposed by the California Independent System Operator. 
Enron and 13 other companies are in negotiations to build the capacity, which 
would have operated during periods of peak demand, when prices are the 
highest. 
Palmer said the lingering uncertainty in the state's power market makes the 
project less financially attractive. 
Still, other financial opportunities could be created by the proposed 
regulations. Palmer said Enron's price-risk management operations could get a 
boost because the state's utilities will now be free to purchase power in the 
forward markets. 
Other trading companies also see an opportunity there, but none would 
estimate its potential value. 
Duke Energy spokesman Tom Williams emphasized the Charlotte, N.C., company's 
commitment to California. Duke, which supplies 4% of California's power, has 
already made a significant investment in the state, he said. 
Duke expects to continue to spend money in the state. For example, Duke will 
proceed with its plans to build its Moss Landing power plant in Monterey 
County. 
As for other power projects, Williams wouldn't provide specific details. 
Still, many believe additional capacity is needed to meet the state's growing 
power needs and lower prices. 
According to Williams, the FERC recommendations don't do enough to encourage 
new generation to be built in the state. 
"I think the next two months are full of uncertainty," Williams said. He 
added, as long as uncertainty persists in the market, companies won't want to 
make the investment. 
This point was echoed by other company officials. 
As the companies continue to review the order and make recommendations, it is 
likely officials will focus future debate on the soft cap and refund 
provisions of Wednesday's proposals. 
Still, the companies appeared encouraged that progress has been made toward 
correcting the state's markets. 
And a lot is at stake, according to Reliant's Stout. Not only is the 
company's future strategy in California riding on these decisions, but states 
like Nevada have slowed deregulation efforts in order to watch the events 
unfolding in California, Stout said. 
Stout said now is the time for consumer groups, power suppliers, utilities 
and the state agencies to come together "to get this power market fixed." 
-Christina Cheddar, Dow Jones Newswires, 201-938-5166 
christina.cheddar@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


IN THE MONEY: Enron Looks To Un-Dip Its Toe From Water
By Carol S. Remond

11/01/2000
Dow Jones News Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column 

NEW YORK -(Dow Jones)- Sometimes it's easier to peddle a hard-sell when you 
don't have everyone looking over your shoulder.
That's what appears to be the case with Enron Corp. (ENE) and what it's doing 
with its majority stake in Azurix Corp. (AZX), the water company Enron 
partially spun-off to the public two years ago. 
In an unusual transaction, Enron has offered to loan Azurix $275 million so 
that it can buy back its stock from the public for $7 a share - that is, any 
and all shares owned by everyone except for those controlled by Enron. 
Following some fancy financial footwork involving trusts that own some of the 
Azurix stock on its behalf, the Houston, Texas energy and commodity trading 
company appears to be priming Azurix for a sale after failing to clinch a 
deal the more traditional way. 
(In a letter to Azurix, Enron indicated that so far, four potential buyers 
have presented themselves. But the top suitor, who offered $7 a share, seems 
to have had a change of heart after taking an in-depth look at the company). 
Details of the latest scheme are scant. All that is clear so far is that 
Enron has hired Lehman Brothers as an adviser regarding its plans for Azurix. 
Although Enron declined to comment on its plans, people familiar with the 
matter suggested that a complex transaction is now in the offing. 
One option Enron had was to do this in the more traditional manner: Buy back 
Azurix shares itself. But that posed a problem. In doing so, Enron would have 
owned more than 50% of the water company, forcing it to consolidate all of 
Azurix' financials on its balance sheet - including a healthy $1.3 billion in 
debt. 
Instead, with a little wave of a financial wand, it appears Enron has found a 
creative way around that problem. 
Here's how it works: Enron loans $275 million to the management of Azurix so 
it can repurchase the non-Enron related shares from the marketplace. That 
leaves an entity called the Atlantic Water Trust continuing to hold 67% of 
Azurix' shares. Atlantic Water is half-owned by Enron and another trust 
called Marlin Trust Co. Enron has voting rights on Marlin's shares. 
A person familiar with the situation suggested that the transaction, which 
has yet to be made public, would include some form of sweetner to entice 
management to back an Enron-arranged sale of Azurix to a third party. 
"Instead of being a growth-oriented play on deregulation and privatization in 
the water utility industry, Azurix will become a sort of quasi utility 
company," said Anatol Feygin, J.P. Morgan's Enron analyst. "Once that is 
done, Enron will be able to cut overhead and development activity and look 
for a buyer." 
An Azurix spokeswoman said Enron's offer is under consideration. She declined 
to comment on Enron's assertion that the water company had retained two 
advisers earlier this year to evaluate its strategic alternatives. 
What's clear so far is that if Enron succeeds in taking Azurix private, 
streamlining the decision making process by excluding private shareholders 
and the need to report to the Securities and Exchange Commission, it won't be 
able to sell the water business in parts and would likely look for a buyer 
for the whole lot. 
That's because the equity of Azurix's crown jewel, U.K.'s Wessex Water Ltd. 
is used to back a GBP400 million credit facility. 
"They can't sell Wessex first because to do so they would have to take that 
facility out," said John Kennedy, a utility analyst at Standard & Poor's. 
Azurix acquired Wessex in October 1998 for $2.4 billion. People familiar with 
the matter suggested that Enron is now in the process of re-evaluating 
Wessex, as well as smaller assets in Latin America. Analysts said that Wessex 
may now bring in about $1.8 billion. (Taking out long-term debt that comes to 
about $4.25 a share). 
So why is Enron so eager to get out of the water business? 
Trouble has been brewing for a while. In September, following months of 
Azurix falling short of analysts' earnings, its high-profile chief financial 
officer, Rebecca Mark, simultaneously resigned from her position and stepped 
down from Enron's board. 
The fact is that Azurix has fallen short of Enron's expectations. The 
energy-trading giant appears to have misjudged the speed of privatization in 
the water and waste-water industry. And now with projects behind, revenues 
have been slow, some $1.3 billion in long-term debt has accumulated and Enron 
appears to have given up on its plans. 
At the end, Enron's seconds may soon fuel ongoing utility consolidation in 
Europe. As least four large European water companies are believed to be 
potential buyers: France's Vivendi's Generale des Eaux and Suez-Lyonnaise des 
Eaux and Germany's E.On and RWE. 
The price of Azurix shares slumped as low as $3.37 earlier this month, far 
below its spring 1999 initial public offering price of $19. Azurix' stock was 
recently trading at about $6.125. - Carol S. Remond; Dow Jones Newswires; 
201-938-2074 
-carol.remond@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 

USA: Transwestern N.M. gas line cut 25 pct on train derail.

11/01/2000
Reuters English News Service
(C) Reuters Limited 2000.

SAN FRANCISCO, Nov 1 (Reuters) - Gas flows through a Transwestern (TW) 
natural gas pipeline in New Mexico have been cut by about 250 million cubic 
feet, or 25 percent, while the line is checked for damage after derailed 
train cars fell near the line, a Transwestern spokesman said Wednesday. 
The freight train derailment occurred late Sunday but the company was not 
informed the train cars had fallen near the gas line until Monday, when gas 
flows were reduced, he said.
The TW pipeline, in northwestern New Mexico, feeds California gas markets and 
normally operates at around one billion cubic feet a day. 
The spokesman for Transwestern Pipeline Co., a subsidiary of Houston-based 
Enron Corp. , was unable to say when the line would be back at normal 
capacity. 
No one was believed to have been hurt in the accident, he added.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 

US Natural Gas Cash Prices End Up On Arbitrage Spreads

11/01/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- U.S. natural gas physical prices mostly rose Wednesday 
with the New York Mercantile Exchange futures board, but still held a 15- to 
16-cent differential to the Nymex, one of the largest seen this year, traders 
said. 
The cost of carrying gas to storage blew out the differential, a Houston 
trader said, as some pipelines refused to allow more gas into storage at this 
late date. "Storage (and arbitrage) wasn't an option," a trader said.
That stagnated some non-incremental buying dead in its tracks, he said. He 
expects the 15- to 16-cent differential to continue on Thursday. 
Also, in the West, gas was looking for a home after some transportation had 
to be redirected because of a force majeure on Enron's Transwestern East of 
Thoreau line. 
A train derailment in New Mexico had damaged the line, cutting back and 
shifting gas deliveries from the East to the West, traders said. 
The Nymex December futures gas contract settled Wednesday at $4.686 per 
million British thermal units, up 19.6 cents as traders brushed aside an 
apparently bearish American Gas Association storage report and bought gas in 
preparation for possible wintry forecasts. 
Although predictions were for a build in the 60-65 billion cubic feet range, 
the AGA said 70 Bcf was added to storage last week, still within some 
expectations and considered slightly bearish. The anticipated total fill of 
about 2.7 trillion cubic feet has been a factor in driving prices down these 
last few weeks, marketers said. 
Swing physical gas for November at the benchmark Henry Hub in south Louisiana 
rose 4 cents-8 cents to a $4.32-$4.48/MMBtu range. November index at the 
Henry Hub is $4.50/MmBtu. 
Transcontinental Gas Pipe Line at Station 65 deals rose 2 cents on the bid, 
but fell 4 cents on the offer to a $4.35-$4.44 range. Index is seen at $4.51. 
At Katy in East Texas, buyers paid $4.25-$4.39, up 1 cent on the bid, down 3 
cents on the offer from the Transwestern outage. Index is seen at $4.43. 
At the Waha hub, prices closed at $4.17-$4.27, down 5 cents-10 cents, also as 
a result of the Transwestern outage. November index for the first of the 
month is at $4.50, flat to the Henry Hub. 
Prices in the West and California and New York moved above $5.00, traders 
said. The California Border index is put at $5.19; PG&E Citygate at $5.33; 
Transcontinental New York Zone 6 line at $5.10 and Texas Eastern's M3 line at 
$4.96, traders said. 
-By John Edmiston, Dow Jones Newswires,713-547-9209; 
john.edmiston@dowjones.com

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