Computer Megamerger: Will Bigger Be Better? Houston Frets Over Symbol of Diverse Economy
The Wall Street Journal, 09/05/01
Shell to Stop Selling Power in Ohio, Texas Energy: Company says it will take too long to become profitable with the slowed pace of electricity deregulation.
Los Angeles Times, 09/05/01
INTERNATIONAL CAPITAL MARKETS - Political risk kills appetite for Asian project finance.
Financial Times, 09/05/01
Enron India Willing To Complete Phase II Of Dabhol Proj
Dow Jones International News, 09/05/01
INDIA: Enron's Indian row may end soon-trade body.
Reuters English News Service, 09/05/01
INDIA PRESS:Dabhol Pwr Lenders Agree To Restructure Loans
Dow Jones International News, 09/05/01
FIs agree to reduce interest rate on DPC loans
The Economic Times, 09/05/01
Loss of local PC giant a blow to city's image
Houston Chronicle, 09/05/01
INDIA: India to revive reform, boost demand for growth.
Reuters English News Service, 09/04/01
Energy-Policy Debate Looms Large As Congress Returns
Dow Jones Energy Service, 09/04/01
USA: US energy firms fear 'show trial' on power refunds.
Reuters English News Service, 09/04/01



Computer Megamerger: Will Bigger Be Better? Houston Frets Over Symbol of Diverse Economy
By Russell Gold and Thaddeus Herrick
Staff Reporters of The Wall Street Journal

09/05/2001
The Wall Street Journal
A14
(Copyright (c) 2001, Dow Jones & Company, Inc.)

For nearly 20 years, the city of Houston has looked to Compaq Computer Corp. as a symbol of the city's efforts to diversify beyond its boom-and-bust energy economy. But with Hewlett-Packard Co.'s proposed acquisition of Compaq, the nation's fourth-largest city once again is looking very much like an oil town. 
Indeed, Houston remains heavily tied to its bedrock industry: Of the city's economic base, 49% is related to energy, though that is down from 82% in 1982.
But Compaq, one of city's largest employers and best-known consumer name, helped to soften the image. Jim Kollaer, chief executive of the Greater Houston Partnership, the city's business advocacy group, said Compaq played the leading role in its efforts. "We've used it as a major flag for recruiting," he said. "Not having that banner to carry will be a loss." 
The real impact to Houston of the acquisition is still unknown, although there is widespread expectation of job losses at Compaq, which has 11,000 workers in Houston. But immediately, the prospect of losing the headquarters of its largest link to the high-tech New Economy is a psychological blow for the Bayou City. 
When skeptics looked down on Houston as a town that oil built, "we had a ready response to that," says Steve Currall, director of the Rice Alliance for Technology and Entrepreneurship at Rice University in Houston: "Compaq was the original major magnet of human capital in the [information technology] sector" to the city. 
Though Compaq wasn't created until 1982, its ties to Houston are deep. The idea for the computer company was launched over dessert at the House of Pies Restaurant & Bakeries on one of the city's main thoroughfares. Plans for the company are said to have been drawn up on a paper place mat. Once grown, Compaq bought the naming rights to the home of the National Basketball Association Houston Rockets, and the company picked up sponsorship of the Houston Marathon. Compaq had also developed training programs with local community colleges to train tech workers for manufacturing. 
But while Compaq's name is on the basketball arena, the downtown skyline is dominated by towers that have the corporate logos of Exxon Mobil Corp., Texaco Inc. and El Paso Corp. And cranes are now building new skyscrapers for Enron Corp., Reliant Energy Inc. and Calpine Corp. While the energy sector still dominates the regional economy, it is itself tremendously diversified, including strong suits in oil and natural-gas production, petrochemicals, refineries and an emerging cluster of companies involved in electrical production and distribution. 
The city also boasts a massive port facility, a campus among the world's largest medical complexes and, of course, the National Aeronautics and Space Administration. But Houston has mostly watched technology companies bypass it and head to other cities, including its intrastate rivals Dallas and Austin. The boom "never took very good roots in Houston," says Bill Gilmer, a senior economist at the Houston branch of the Dallas Federal Reserve Bank. "Once you get past Compaq and BMC Software and a few others, you are sort of through." 
Still, the city remains committed to diversifying its economy in order to avoid a rerun of the crushing energy downturn of the mid-1980s, when one in every eight jobs was lost, about 225,000 in all, says Mr. Gilmer. As part of that effort, Mayor Lee P. Brown, the onetime drug czar under former President Clinton, issued a statement yesterday promoting the city's attractiveness to "the best and brightest workers."

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


Business; Financial Desk
Shell to Stop Selling Power in Ohio, Texas Energy: Company says it will take too long to become profitable with the slowed pace of electricity deregulation.
MARGOT HABIBY
BLOOMBERG NEWS

09/05/2001
Los Angeles Times
Home Edition
C-5
Copyright 2001 / The Times Mirror Company

HOUSTON -- Shell Energy Services, an affiliate of Royal Dutch/Shell Group, the second-largest publicly traded oil company, said Tuesday that it will stop selling retail power in Ohio and Texas because of a slowdown in U.S. deregulation. 
Shell Energy will focus instead on selling natural gas in Georgia and Ohio, the company said.
"Volatile energy prices and an uncertain economic environment over the past few months have caused legislators, regulators, generators and marketers to reconsider their deregulation situations and strategies," Alan Raymond, president and chief executive of Shell Energy, said in a statement. 
The company said the slower pace of deregulation made it unlikely that it would make a profit "in a reasonable amount of time" by selling retail power nationwide. 
Power prices in California, one of the first states to open its market, rose exponentially last summer, and the state experienced a series of outages. Politicians have accused the state's power sellers of profiteering in the competitive market. The power sellers say there are flaws in the California market model and the state has a supply shortage. 
Shell Energy said it will find another marketer for its 30,000 Ohio customers and will withdraw from Texas' retail choice program, scheduled to start Jan. 1. Customers who selected Shell for the pilot program ahead of statewide deregulation will be returned automatically to their traditional utility. 
Competitor NewPower Holdings Inc. said its New Power unit's base of residential and small-business customers continues to grow, and it remains committed to retail energy competition. The company has customers in 10 states. 
NewPower, a venture formed by Enron Corp. to compete with traditional gas and electric utilities, said in a statement that natural gas presents "an attractive marketing opportunity," but it believes that "electricity deregulation is progressing strongly and provides a sustainable market that will only continue to grow." 
Shares of Shell fell 44 cents to $56.19 in the U.S. Shell is based in The Hague. Shell Energy is based in Houston. 
Shares of Purchase, N.Y.-based New Power rose 15 cents to $14.15 on the New York Stock Exchange.

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

INTERNATIONAL CAPITAL MARKETS - Political risk kills appetite for Asian project finance.
By MARY WATKINS.

09/05/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

With another downturn looming, activity has dried up, saysMary Watkins. 
Investor appetite for project finance bonds in Asiahas dwindled this year in the face of credit ratingdowngrades, defaults and an uncertain economic and legal environment.
According to Moody's Investors Service, there is expected to be only one cross-border project bond issue this year in Asia outside Australia and New Zealand. 
Five years ago, governments across Asia thought the answer to their infrastructure funding problems was to turn to the private sector, with power stations, water plants, roads and railways being financed using funds from foreign sponsors backed by international bank loans and bonds. 
However, with another economic downturn looming, activity in the project bond and bank market, which was at its height in the mid-1990s, has dried up. 
Figures from Dealogic Capital Data ProjectWare, which tracks project finance transactions, show that only two project bonds, worth about $600m, have closed this year. Both were in Australia. 
This compares with 15 project bond issues in the region last year, worth about $4.1bn. 
Moody's says international investors now perceive a more palatable risk-reward ratio outside emerging market economies. 
Consequently, demand for infrastructure financing, which on a global scale over the next 10 years is estimated to require $1,000bn to $2,000bn of investment, far outstrips supply. 
Batul Sharif of Project-Ware said that this year borrowers have turned to the loans market, which has the possibility of political risk cover or a rating from one of the agencies. 
"The loans market has been the better option to service the intricacies of a project finance deal in a region with high political risk," Ms Sharif says. 
International investors, meanwhile, have shunned project bonds in favour of US or high-quality Asian bonds. 
Sean Chang, fund manager at Invesco in Hong Kong, says that companies funding or refinancing projects in the region are looking at the loan market as a cheaper funding option than the bond market. 
"We are expecting a number of big issues in September and October when investors come back to the market. Investors will be looking at some selective corporate bond issues," Mr Chang says. 
Downgradings of project bond paper in Asia have soured project finance deals for investors and banks. 
Meanwhile, foreign companies, which had their fingers burnt a few years ago when state companies tried to renegotiate off-take agreements, are now increasingly wary of throwing their resources behind billion-dollar projects in Asia as they did a few years ago. 
In particular, currency volatility in the region and political tariff disputes of the type seen in Pakistan's Hub power project, or more recently in the case of the Dabhol project in India, have served as reminders of the risks involved. 
The Indian government is locked in a dispute with Enron, the US energy group, over payment for the $2.9bn Dabhol plant. 
"The problem in Asia is the level of political and legal uncertainty," according to Brian Cahill at Moody's in Australia. 
"There is a level of scepticism. Some corporates are looking at the structures in place and (concluding that) while they may be in place now, they may not be there in 10 years' time." 
Despite the decline in support for cross-border project bonds, the funding solution could come from local bank and capital markets with countries such as Malaysia, Singapore and South Korea beginning to open up. 
Given that sponsors in previous deals were caught out by the mismatch of local currency revenue and dollar-funded loans, local currency deals are providing part of the answer. 
Citibank, which has a local bank network, says it is turning its attention to managing local currency project bond deals. 
It says that by using domestic rating agencies and working with local institutions, it expects to see a rise in local currency bond issues of the type being used for Malakoff, the Malaysian power company. 
(c) Copyright Financial Times Ltd. All rights reserved. 
http://www.ft.com.

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

Enron India Willing To Complete Phase II Of Dabhol Proj

09/05/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Enron Corp. (ENE) is willing to complete the 1,444 megawatt phase II of India's Dabhol power project before selling its entire stake in the Dabhol Power Co., Enron India spokesman Jimmy Mogal said Wednesday. 
Enron holds a controlling 65% stake in the $2.9 billion, 2,184 megawatt Dabhol power project located in the western Indian state of Maharashtra. The Maharashtra State Electricity Board holds a 15% stake in Dabhol while General Electric Co. (GE) and Bechtel Corp. (X.BTL) hold 10% each of the remaining equity.
"We have offered to complete the project at cost if a buyer wants us to do it. It's there in our buyout proposal submitted to the government," Mogal said. 
As reported, Enron has threatened to pull out of the India project following payment disputes with its sole buyer, the Maharashtra State Electricity Board and the failure of India's federal government to honor its counter-guarantee for the Dabhol project. 
Dabhol phase II is currently about 95% complete. Its construction was abandoned by the contractor because of a payment dispute. 
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dowjones.com

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


INDIA: Enron's Indian row may end soon-trade body.

09/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, Sept 5 (Reuters) - A "win-win" solution to U.S. energy giant Enron's bitter row with Indian authorities could be achieved within weeks, the head of the Confederation of Indian Industry (CII) said on Wednesday. 
The leading trade body got involved in talks after Enron Corp's chairman, Kenneth Lay, asked for its help to resolve the payment dispute with a local utility, CII director-general Tarun Das told Reuters on the sidelines of a conference.
"It could be resolved within weeks. It will be a win-win situation for all. Enron will leave India but it will complete the project. There will be a 2,000-MW plant owned by Indians," he said. "We are facilitating a dialogue. We want foreign investment to come to India and we want good Indo-U.S. relations." 
Enron India spokesman, Jimmy Mogal, said the company had offered to complete the second phase of the project where construction had been abandoned by the contractor because of the payments dispute. 
"While it would not be appropriate to comment on specific discussions, I can confirm that our proposal for buyout submitted to the government of India included our offer towards services at cost for project completion should they so require us to facilitate this."

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

INDIA PRESS:Dabhol Pwr Lenders Agree To Restructure Loans

09/05/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Indian lenders to the U.S. energy major Enron Corp.'s (ENE) unit Dabhol Power Co., led by Industrial Development Bank of India (P.IDB), have agreed to reduce interest rates on their loans to 14.5%, from 16.5%, reports the Economic Times. 
"We have agreed to make a sacrifice - take a cut on interest by 2% on the loan amount. We also exploring other possibilities for bringing down the overall project cost," the newspaper quoted an unnamed IDBI executive as saying.
Domestic lenders have a total exposure of about $1.2 billion in the 2,184 megawatt, $2.9 billion Dabhol power project located in the western India state of Maharashtra, the report says. 
Enron has a controlling 65% stake in Dabhol Power. 
Domestic lenders are busy negotiating with potential buyers of Enron's stake, mostly local state-owned companies and foreign entities, following Enron's announcement of its desire to sell, adds the report. 
Web site: http://www.economictimes.com 

-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dowjones.com

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

FIs agree to reduce interest rate on DPC loans
James Mathew & Soma Banerjee

09/05/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

AS part of the package for bringing down the project cost of the controversial Dabhol power project, the domestic financial institutions led by Industrial Development Bank of India have in principle agreed to reduce 2 per cent interest rates on their loans to the project. 
The squeeze in project cost is aimed at bringing down the tariff of the power generated by the project to a reasonable level.
We have in principally agreed to make a sacrifice take a cut on interest by two per cent on the loan amount. We are also exploring other the possibilities for bringing down the overall project cost, a senior IDBI executive told ET. 
It could not be, however, ascertained whether the foreign lenders would also take a similar cut on interest rates on their loan amounts to the Enron-promoted 2144 MW project. 
The move on the cost cut comes even as the FIs are busy negotiating with various prospective buyers of how the Enron stake could be bought by another company. 
This is the first ever move since the government set up a high level committee of FI representatives who have been working closely with the finance and power ministry. 
It has been proposed that the domestic lenders who have a total exposure of about $ 1.2 billion will slash their interest rates for the debt given for the Enron project. The total debt exposure of the project stands at $ 1.9 billion. 
This will be the second cut in interest rates in this fiscal. The last time, the project developers themselves had approached the state government and state electricity board authorities and had suggested this as one of the possible ways to cut tariffs. However, the deduction then was far more steep with the FIs slashing rates from 21 per cent to 16.5 per cent. 
If the proposal goes through, the interest rates for the loans will come down to 14.5 per cent which is just about the rate at which the FIsthemselves source their funds. Sources in FI circles said that a cut in interest rate at this stage is one of the ways being explored to make the project feasible. 
The whole idea behind the cost rationalisation exercise is to find a new developer for the project. With Enron having made up its mind to pull out of the project, the Centre along with the Fis are now trying to find ways to firstly complete the project and secondly find a new developer for Enrons stake.

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

Sept. 5, 2001
Houston Chronicle
Loss of local PC giant a blow to city's image 
By DAVID IVANOVICH 
Copyright 2001 Houston Chronicle Washington Bureau 
Hewlett-Packard Co.'s planned purchase of Compaq Computer Corp. means more to Houston than the loss of a headquarters. 
It's a blow to the much-cultivated image of Houston as something more than an oil and gas town. 
Since the Oil Bust days of the mid-1980s, city boosters have touted the diversification of Houston's economy. Compaq has given them a ready-made success story. 
With its legendary start at a brainstorming session at a House of Pies, its meteoric rise in the personal computer world, and its strong name-brand recognition, Compaq was Houston's answer to the new economy meccas of Austin, Seattle and Silicon Valley. 
"Compaq was a recognizable name on the world market, and it was one we were able to utilize," said Jim Kollaer, president of the Greater Houston Partnership. "We'll just have to look at our marketing in a little different way." 
The diversification strategy is evident in a 12-page glossy advertising insert the Greater Houston Convention and Visitors Bureau is running in the New York Times this month in an effort to promote the city. 
"Houston's technology industry presence is transforming the `Bayou City' into `Silicon Bayou,' " the ad declares. "The technology sector is key to the diversified economic base that has fueled the city's growth through the past decade." 
Compaq and BMC Software are both mentioned in the ad. 
After the Compaq acquisition, city leaders still intend to trumpet what is expected to be a sizable Hewlett-Packard presence in the Houston area, noted Jordy Tollett, president of the Convention and Visitors Bureau. 
But it won't be the same. 
"It's not like saying the company was founded here," Tollett said. 
Of the 21 Houston-based companies that made the Fortune 500 list last April, Compaq ranked No. 2, behind energy giant Enron Corp. 
Houston has lost its share of venerable business names over the years, including Tenneco, Panhandle Eastern, Texas Commerce Bank, Transco, Coastal Corp. and, recently, Mitchell Energy & Development Corp. 
White Plains, N.Y.-based Texaco -- which has a large presence in Houston -- is soon expected to be swallowed by Chevron Corp. 
The people who market Houston say this is not just a local problem. 
"We're dealing with the reality of operating in a global market," Kollaer said. "This is not an issue that is unique to Houston." 
The economic effects of the loss of a corporate headquarters is typically not as great as, say, the closing of a manufacturing plant, noted Ron Starner, director of publications for Conway Data, which publishes Site Selection magazine. 
"Most of the blow is psychological," Starner said. "It's perceived prestige." 
Higher-wage manufacturing jobs typically help create several jobs in the service sector, Starner said. "You don't see the same multiplier effect with corporate headquarters jobs." 
But Houstonians may well notice Compaq's absence. 
For the second year in a row, Compaq is the lead sponsor for the Houston Marathon. Company officials have assured marathon organizers that they will again back the event in January. 
But the company's role in future marathons is uncertain. 
The company also retains the naming rights for the Compaq Center, for now the home of the Houston Rockets. Those naming rights expire in 2003, about the time the new downtown arena is expected to open. 
Compaq officials would not say Tuesday whether the Compaq Center's name might change as a result of the deal. 
It also has been a large supporter of arts organizations around town, including the Alley Theatre and the Houston Symphony Orchestra. 
"Compaq's just always been there, providing software and actual computers to help the nonprofit arts organizations," said Laura Bodenheimer, development director for the Hobby Center for the Performing Arts. "We are all hoping that Hewlett-Packard will continue the tradition." 


INDIA: India to revive reform, boost demand for growth.
By Himangshu Watts

09/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, Sept 4 (Reuters) - India will step up investment expenditure, give another push to its privatisation programme and reform labour laws to revive its slowing economy, Finance Minister Yashwant Sinha said on Tuesday. 
"We want to give a stimulus to the economy," Sinha told reporters after Prime Minister Atal Behari Vajpayee's late-evening meeting with heads of key economic ministries.
Sinha said he hoped the measures would boost demand and speed up economic growth which fell to 5.2 percent in 2000/01 from 6.4 percent a year earlier. 
Analysts say the government needs to take decisive measures to revive the economy as outlook for this year also appears gloomy with exports, industrial production and tax revenues down. 
Vajpayee told the ministers that there were "major areas of concern" such as the industrial slowdown, although some indicators such as inflation, food stocks and the current account deficit were strong, Sinha said. 
IMPLEMENTATION 
Sinha said the government was determined to show results. 
"The prime minister has taken the first step towards the observance of the year of implementation," he said referring to Vajpayee's declaration in his Independence Day speech last month. 
Promised key economic reforms such as the revamping of restrictive labour laws and privatisation have become stalled under Vajpayee's Bharatiya Janata Party led-coalition government. 
The government has also been rocked by a string of scandals involving the defence industry, domestic stock markets and a state-run mutual fund. 
The drift encouraged international agencies to downgrade India's ratings and outlook citing a slowdown in economic reform, unchecked budget deficits and mounting debt. 
Sinha said the prime minister had asked to cabinet secretary, India's seniormost civil servant, to suggest ways to cut red tape and coordinate with various ministries to implement projects that would generate demand in the economy. 
He said the government would encourage timely completion of large projects. The Press Trust of India reported that the power ministry had listed 14 projects involving an expenditure of 12 billion rupees ($255 million) which would be started this year. 
India's Cabinet Committee on Disinvestment, which approves privatisation of state-run firms, would meet shortly to discuss "new areas of disinvestment" Sinha said. 
He said a new cabinet panel on strategy would be set up. "There has been a feeling that we have not been discussing economic strategy." 
LABOUR LAWS 
The government would also set up a group of ministers to study changes in labour laws and prepare a new legislation. 
"The endeavour of the government is to...introduce it in the next session of parliament," Sinha said. 
He said Vajpayee would call another meeting soon to discuss down-sizing of several ministries. 
Vajpayee also discussed measures to boost foreign investment, but did not discuss the woes of U.S. energy firm, Enron Corp , which wants to sell its equity in its troubled Dabhol plant, which is India's biggest direct foreign investment. 
The meeting was attended by ministers and top officials from the power, petroleum, finance, disinvestment and law ministries, among others. 
It follows a weekend move by Vajpayee to expand his coalition cabinet and shuffle several portfolios after what aides said was a performance review.

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

Energy-Policy Debate Looms Large As Congress Returns
By Bryan Lee
Of DOW JONES NEWSWIRES

09/04/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- Congress returns this week after a monthlong recess, and energy legislation is a top priority at committees in both the House and Senate. 
A House Energy and Commerce Committee will hear testimony on nuclear power liability issues Thursday, and the Senate Energy Committee resumes its "markup" of a comprehensive energy-policy bill next week.
The House passed a considerable piece of the Bush administration's energy-policy package in a bill this summer, which addressed key controversies such as automobile fuel economy and drilling for oil in Alaska's Arctic Natural Wildlife Refuge, known as ANWR. 
Nuclear power and electricity restructuring issues are next on the agenda in the House Energy and Commerce Committee. 
The Senate will take up those controversies in one fell swoop, with ANWR promising to be the lightning rod for public attention and debate. 
The campaign to convince the Senate against following the House in voting to open ANWR to drilling began in earnest during the weekend, as environmentalists released a study disputing arguments that Arctic drilling will produce some 750,000 jobs. 
The jobs argument helped drum up organized labor support for ANWR, with the AFL-CIO coming out in favor of drilling there on the eve of the House vote, joining with other unions such as the Teamsters. 
The union support was touted as tipping the scales in the House in favor of ANWR drilling, and the argument was expected to be persuasive on the Senate side, as well. 
The new assessment, sponsored by environmental groups, downplays the amount of oil to be derived from ANWR to conclude that fewer than 50,000 jobs will result. 
Sen. Frank Murkowski, R-Alaska, will take the lead in arguing for Senate support of ANWR drilling in the face of filibuster threats from Sens. John Kerry, D-Mass., and Joe Lieberman, D-Conn. 
But whatever the outcome on ANWR, the Democrat-controlled Senate is certain to take a different tack on energy policy than the Bush administration. 
Democrats have criticized the Bush plan as too heavily weighted in favor of domestic energy production that benefits the energy concerns that contributed heavily to Bush's presidential campaign. They favor an approach that promotes more conservation and development of renewable energy. 
That is certainly the agenda for Sen. Jeff Bingaman, D-N.M., chairman of the Senate Energy Committee. The committee's markup will continue next week, with energy conservation and efficiency at the top of the agenda. 
Bingaman kicked off his committee's voting on energy-policy legislation last month, promising to weave global climate-change objectives into the heart of the Senate bill. 
This will give Democrats a chance to highlight President Bush's opposition to the Kyoto global warming treaty. 
"One of the most important public policy issues we will face in the 21st century is climate change," Bingaman said. 
A key question going into this fall's debate is what actions Congress will take affecting the $220 billion U.S. electricity sector. 
An effort last month by House Majority Whip Tom DeLay, R-Texas, to bring together various efforts in support of electricity restructuring legislation failed. 
Bingaman, meanwhile, is calling for beefing up the regulatory muscle of the U.S. Federal Energy Regulatory Commission, which will produce opposition from state regulators and various industry interests. 
Lobbyists contacted Tuesday were skeptical Congress will reach agreement on electricity restructuring issues. FERC is now chaired by a Bush-appointee, Pat Wood, the former head of the Texas utility commission, whose activist agenda at FERC is expected to take much of the wind out of the sails for power-sector reform in Congress. 
When it comes to electricity, there are too many issues "where people are willing to lay down on the railroad tracks," said one former congressional aide. 
But congressional aides in both the House and Senate were confident that legislation will emerge addressing the electricity sector. 
"We have the president's support," said a spokeswoman for Rep. Joe Barton, R-Texas, who chairs the House Energy and Air Quality Subcommittee. 
"Electricity is ripening very nicely," said a Bingaman spokesman, who suggested that the committee could turn its attention to the issue as soon as next week, after the energy efficiency and conservation issues. 
Competitive power providers are rolling out an advertising campaign Wednesday in support of electricity restructuring legislation. 
The Electric Power Supply Association and companies such as Enron Corp. (ENE), Dynegy Inc. (DYN) and Reliant Energy (REI) have formed the Coalition for a Powerful Future to tout the economic and consumer benefits of electricity competition in "Power Points" television spots directed at members of Congress. 
Whatever the outcome, both the House and Senate are on track to wrap up work on energy-policy legislation this fall. It remains to be seen, however, whether a joint House-Senate conference committee will complete work on a compromise energy bill in time to allow Congress to send a bill to the president before it adjourns for the year. 
"It's all kind of uncertain," said a utility industry lobbyist. 
"They'll do something on energy. The question is, how much do they actually do?" said another lobbyist. Despite all the wrangling in the House and Senate this fall, much of the final energy-policy bill will be written behind closed doors in conference committee, the lobbyist predicted, citing the experience of the 1992 Energy Policy Act. 
-By Bryan Lee, Dow Jones Newswires; 202-862-6647; bryan.lee@dowjones.com

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

USA: US energy firms fear 'show trial' on power refunds.

09/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, Sept 4 (Reuters) - Energy firms supplying electricity to the Pacific Northwest denied on Tuesday they overcharged for power and called a federal agency hearing on the issue nothing more that a "show trial." 
A Federal Energy Regulatory Commission administrative law judge began several days of hearings this week on claims from Pacific Northwest purchasers that electricity suppliers owe refunds of some $1.5 billion from overcharges during the region's energy crisis earlier this year.
Refunds are being demanded by Puget Sound Energy and a host of Pacific Northwest cities, including Seattle and Tacoma. 
FERC ordered a proceeding to determine if any refunds were due in the region, while establishing a separate case to review California's demand for $8.9 billion in refunds. 
At Tuesday's hearing, electricity sellers - including Enron Corp. , Idacorp Inc. and Pinnacle West Capital Corp. unit Arizona Public Service Co. - joined forces to defend their business practices. 
"We overcharged no one," Dan Watkiss, an attorney for the power-selling firms, told reporters during a break in the hearing. 
Watkiss also complained to FERC judge Carmen Cintron that the selling firms were not given enough time to prepare for the hearing and the companies were being rushed and denied their legal rights. 
"This is really being reduced to a show trial," he said. 
Cintron is scheduled to make her recommendations later this month to the FERC's four-member commission, which will then rule on the issue. 
The Pacific Northwest purchasers suffered a setback last week when Cintron rejected an attempt to force the selling firms to share specific data on their sales in the Western market to help determine if the companies owe refunds. 
After the transaction data was submitted to Cintron, it was put under seal to prevent other parties in the case or the public from examining it.

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