-----Original Message-----
From: 	"Russo, Brian" <Brian.Russo@ubsw.com>@ENRON   On Behalf Of "Abramson, Barry" <Barry.Abramson@ubsw.com>
Sent:	Monday, November 19, 2001 7:13 AM
To:	undisclosed-recipients:;@ENRON
Subject:	Electric Utilities:  Weekly Report

KEY POINTS
*	We continue to recommend an overweighting in the electric utility group.  The group's attractive relative P/E
valuation, its high relative yield, its defensive nature and interest sensitivity are all reasons why we think electric
stocks should perform well versus the overall stock market for the rest of 2001.
*	The average P/E ratio for the electric utility group is now 10.8x estimated 2002 EPS, compared with a 2002 P/E
of 24.2x for the S&P 500.  The relative P/E ratio of 0.45x is below the 25-year historic normal range of 0.60x-0.80x,
and is also near the all-time low of 0.40x.
*	The average yield for the electric utility group is now 4.96%, which should make the group attractive to
individual investors earning around 2.25% in the typical money market fund.  Historically, the yield on utility stocks
has rarely been more than twice as high as money market fund yields like it is today.
*	Falling oil and natural gas prices have caused wholesale power prices, that were already very low, to fall even
further.  Electricity futures prices, shown in Exhibit 2 on Page 5, fell by another 5% in most regions in the past week.
Electricity futures prices have fallen by about 10% across the U.S. in the past month.
*	Coal prices have not come down in line with the big declines in the prices of oil, natural gas and wholesale
power (see Page 8 for data on spot coal prices).  The spot price of coal is more than 50% above the price levels from
late last year in all coal markets.  It appears that due to supply constraints, coal prices have not followed the
decline in oil and natural gas prices.
*	Electric utility stocks lagged the overall stock market last week.  For the five trading days last week,
electric utility stocks went down in value by 3.7%, compared with a gain of 1.6% for the S&P 500.  IPP stocks had a good
week, with an average gain of 7.1%.
*	SPECIAL HOLIDAY TRIVIA QUIZ.  This Thursday, Americans celebrate the Thanksgiving Day holiday.  Can you name two
nuclear power plants whose names remind you of Thanksgiving?  (The answer is on the bottom of Page 4.)


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