Energy Insight News for Tuesday, November 27, 2001
Transmission system needs quick fix

It's been called the "best investment a nation ever made." Throughout its
history, it has enriched the country's quality of life, positioned the U.S.
for international competitiveness and enhanced national security.

The words describe the U.S. interstate highways, but substitute electrons
for motor vehicles and it aptly portrays the country's "other" interstate
system: its transmission system. 

If the national system of roads brought the country closer together and made
it easier to get from "here to there," the nation's system of high capacity
cables certainly has done the same. 

However, while the concrete and macadam highways have a method to fund
repairs and to expand, no modern modus operandi currently exists to grow the
wires system. 

With the ongoing industry restructuring and the shift from self-contained,
vertically integrated fiefdoms with their own portions of the grid, no one
wants to take the step of funding new transmission if the return on
investment is low-or even uncertain. 

The Federal Energy Regulatory Commission first urged, then demanded,
utilities give up control of their wires to regional transmission
organizations (RTOs) to smooth out the transmission system, but even that
mandate seems to be bogged down in the realities of such a massive endeavor.
Read the entire story at http://www.energyinsight.com. 
Also, catch the latest news headlines on Energy Insight Executive, updated
twice daily.
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Market Brief    Monday, November 26             	
Stocks  Close   Change  % Change (from Wed.)	
DJIA    9,982.75        148.1   1.51%	
DJ 15 Util.     287.21  0.7     0.26%	
NASDAQ  1,941.23        66.18   3.53%	
S&P 500 1,157.42        20.4    1.79%	
                        	
Market Vols     Close   Change  % Change	
AMEX (000)      136,544 24,142.0        21.48%	
NASDAQ (000)    1,723,091       146,534.0       9.29%	
NYSE (000)      1,088,376       65,707.0        6.43%	
                        	
Commodities     Close   Change  % Change	
Crude Oil (Jan) 18.79   (0.17)  -0.90%	
Heating Oil (Dec)       0.524   (0.010) -1.91%	
Nat. Gas (Henry)        2.717   (0.096) -3.41%	
Propane (Dec)   29.25   (2.25)  -7.14%	
Palo Verde (Dec)        25.25   (1.00)  -3.81%	
COB (Dec)       30.50   (1.00)  -3.17%	
PJM (Dec)       26.70   (0.90)  -3.26%	
                        	
Dollar US $     Close   Change  % Change	
Australia $     1.928   (0.008) -0.41%	
Canada $        1.60    (0.002) -0.12%	
Germany Dmark   2.22    (0.006) -0.27%	
Euro    0.8801  0.002   0.18%	
Japan ?en     124.1   0.900   0.73%	
Mexico NP       9.18    0.030   0.33%	
UK Pound        0.7078  0.0011  0.16%	
                        	
Foreign Indices Close   Change  % Change	
Arg MerVal      223.87  18.59   9.06%	
Austr All Ord.  3,284.70        12.20   0.37%	
Braz Bovespa    13759.53        965.74  7.55%	
Can TSE 300     7466.40 135.50  1.85%	
Germany DAX     5114.12 27.09   0.53%	
HK HangSeng     11391.96        218.04  1.95%	
Japan Nikkei 225        11064.3 403.22  3.78%	
Mexico IPC      5757.52 83.11   1.46%	
UK FTSE 100     5,302.50        (11.30) -0.21%	
                        	
Source:  Yahoo! & TradingDay.com                        	
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Executive News
Dynegy mulling renegotiation of Enron deal 
A source close to the Dynegy/Enron merger talks Monday afternoon said "all
the parties in the transaction" are currently in discussions that could lead
to a renegotiation of the deal. The source could not comment on what parts
of the proposed deal were specifically under review. Enron's stock, down to
just over $4/share at Monday's close, is about $6 below its price at the
time of the $8.9 billion stock-for-stock deal announced Nov. 9, which valued
Enron shares at roughly $10.85/share. A Dynegy spokesman said today that
Dynegy was still conducting "due diligence". The source close to the talks
acknowledged suggestions that other companies may have an interest in
acquiring Enron. When asked if renegotiations of the deal were currently
underway, the source re-emphasized that Dynegy is currently "talking to all
the parties in the transaction."

NAFTA panel urges study of power deregulation, pollution
The North American Commission for Environmental Cooperation (CEC) wants the
U.S., Canada and Mexico to address pollution issues before energy markets
open up between the countries, officials with the international agency said
Monday. "There is a momentum toward restructured North America energy
markets, but what's missing is the environmental context," said Paul Miller,
CEC's program manager for air quality. The CEC was created to act as an
environmental watchdog as part of the North American Free Trade Agreement.
The CEC officials noted Mexican power plants produce more pollution than
ones in the U.S. and expressed concern that companies will build plants in
Mexico to avoid tougher U.S. regulations, only to sell the power in the U.S.
They said this might cause unduly high pollution in border areas.

To subscribe to our Executive News Service, which is updated twice daily,
log on to http://www.energyinsight.com, or contact Platt's Direct Response
Team at 1-800-424-2908 (if outside the United States call 1-720-548-5700).
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