Good Morning,

Attached, please find the latest issue of our Independent Power Weekly.

 <<IPW071601.pdf>>
Summary:
1. IPPs Fall 1.9%   Last week our IPP composite fell 1.9%, underperforming
both the NASDAQ (+4.0%) and the S&P 500 (+2.1%).  Calpine was the strongest
performer in the group, rising 4.5%.  AES was the weakest performer, falling
9.5%.

2. 4 Items to Focus On   In our view, there were four items worth focusing
on from last week: 1.) AES fell 10% owing to Latin American concerns.  We
see downside to our 2001 estimate; 2.) The FERC settlement conference
adjourned on July 9.  On July 12, the presiding ALJ issued a recommendation
favorable to generators; 3.) On July 12, the US bankruptcy court approved
Calpine's settlement with PG&E; and, 4.) On July 10, NRG Energy announced it
would acquire a 2,255 MW portfolio from Indeck.

3. Latin America Pressuring AES Earnings   The likelihood of downside to our
2001 EPS estimate for AES. Corp. of $1.89 has increased materially.  We
believe the ongoing currency weakness combined with power rationing have the
potential to negatively impact 2001 EPS by $0.25-$0.30 versus prior
expectations-on a stand-alone basis.  While management indicated in mid-May
that it could offset weakness in Brazil, the currency has materially
depreciated since that time and shows no signs of improvement in the
near-term.  AES's second quarter earnings conference call will take place on
July 26.  Following the call, we will adjust our 2001 estimate accordingly,
unless management indicates that it remains positioned to offset these items
through upside in other parts of its business.

4.  FERC ALJ Issues Report    On Thursday (7/12), Curtis Wagner, the
Administrative Law Judge who presided over the recent settlement conference,
issued a report presenting his findings and recommendations for next steps.
Overall, the report was very much consistent with our expectations.  While
Wagner notes that some refunds are due from the generators, he argues that
the $8.9 billion demanded by the State of California "cannot be
substantiated."   We believe Calpine and Mirant offer the greatest downside
protection from this issue.

5. CSFB Power Generation Supply Chain Conference   On September 10 and 11,
CSFB will host a Power Generation Supply Chain Conference at the Plaza Hotel
in New York City.  This event is designed to provide investors with a
wholistic perspective on all aspects of the sector-from coal and natural gas
companies, to equipment and construction service providers, to the power
producers themselves.  Please contact us if you would like additional
information.

Regards,

Neil Stein   212/325-4217
Bryan Sifert   212/325-3906


This message is for the named person's use only.  It may contain
confidential, proprietary or legally privileged information.  No
confidentiality or privilege is waived or lost by any mistransmission.
If you receive this message in error, please immediately delete it and all
copies of it from your system, destroy any hard copies of it and notify the
sender.  You must not, directly or indirectly, use, disclose, distribute,
print, or copy any part of this message if you are not the intended
recipient. CREDIT SUISSE GROUP and each of its subsidiaries each reserve
the right to monitor all e-mail communications through its networks.  Any
views expressed in this message are those of the individual sender, except
where the message states otherwise and the sender is authorised to state
them to be the views of any such entity.
Unless otherwise stated, any pricing information given in this message is
indicative only, is subject to change and does not constitute an offer to
deal at any price quoted.
Any reference to the terms of executed transactions should be treated as
preliminary only and subject to our formal written confirmation.




 - IPW071601.pdf