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   Thursday, February 21, 2002 Issue 47   EDITORIAL  Protestors, Profits and Cows    Most of the Eyeforenergy team has returned from our recent, Energy, Weather and Emissions Trading conferences in Amsterdam.  With over 250 people at the event (and that's not counting the protestors and media who showed up), these events were a true success and we'd like to thank all the speakers, sponsors and delegates who came and made it what it was.   Our newsletter this week brings together a number of interesting issues.  Al Massey's written an article on the new Bush plan unveiled as a Kyoto alternative.  We've also got a first day summary of some of the key issues emerging from the Amsterdam conference.  And we begin looking further into the world of energy management and what's out there for both the buyers and sellers of energy in terms of both key issues and concerns as well as solutions.   And finally, to end on a light note (and after a week that saw our conference attacked by people with blue wigs and water pistols, how can you end on anything else?), we've got a joke that was forwarded to us about cows and Enron.  It certainly made us chuckle...     Feudalism You have two cows. Your lord takes some of the milk.Fascism You have two cows. The government takes both, hires you to take care of them and sells you the milk. Communism You have two cows. You must take care of them, but the government takes all the milk.Capitalism You have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income. Enron You have two cows. You borrow 80% of the forward value of the two cows from your bank, then buy another cow with 5% down and the rest financed by the seller on a note callable if your market cap goes below $20B at a rate 2 times prime. You now sell three cows to your publicly listed company, using letters of credit opened by your brother-in-law at a 2nd bank, then execute a debt/equity swap with an associated general offer so that you get four cows back, with a tax exemption for five cows. The milk rights of six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more and this transaction process is upheld by your independent auditor and no Balance Sheet provided with the press release that announces that Enron as a major owner of cows will begin trading cows via the Internet site COW (cows on web). I am sure you now fully understand what happened.      --Allison Robertshaw, Editor   FOCUS   Monitoring Energy Use in the Digital Economy    As deregulation comes to an overloaded and often antiquated power grid, companies and consumers alike struggle with rising energy cost and the need for a smooth flow of electrons. For much of the world, deregulation offered the false promise of increased competition that would result in lower rates.  Energy users can only watch with growing concern as the world's transmission buckles under the strain of keeping pace with global expansion at a time when demand for electricity is outpacing supply. Today's energy market is becoming fractured with power shortages, high prices and reduced... Click here for Full Story    Day 1 Update from Eyeforenergy's Energy, Emissions and Weather Trading Conference    With over 250 people in attendance at the Amsterdam shows, the three trading events kicked off to a distinct buzz. Initial excitement was caused by a group of environmental protestors who stormed the hotel and briefly occupied the Emissions Trading conference, which resumed shortly afterwards.  The excitement about the emissions trading conference didn't go down a notch after the protestors were removed - if anything delegates were even more determined to get down to work. With the impending UK emissions auction, all eyes were on Powergen's Dr William Kyte and what this... Click here for Full Story     INSIGHT   Bush Unveils Kyoto Alternative "GHG, Global Warming and the Battle of Semantics"    Since he came out in opposition to the Kyoto Protocol last March, President George Bush has drifted from most of the world community over the issue of global warming. The latest shot fired across the bow of Kyoto supporters came last week when the President unveiled his alternative to the treaty.  Peppered with phrases such as "greenhouse gas intensity," and "stabilizing GHG concentration" while proposing a "new environmental path" that will "benefit the entire world," Bush's speech appeared to be more a battle of semantics, rather than a declaration of war on global warming...Click here for Full Story     ADVERTISEMENT  [IMAGE] TIP Days  TAF ICT Solutions, the Amsterdam based total solution provider in speech- and datasolutions, has received an enormous amount of attention during this week's Eyeforenergy events in Amsterdam. Following this, TAF ICT Solutions have organised their annual TAF ICT Solutions Product days (TIP Days) from March 11-15 2002.  This is designed to combine business with pleasure and gives you the opportunity to see the whole range of ICT products. The main motto 'Investigate before you invest' leads you to Voice Recording, Voice over IP (VoIP), Restart Service and Outplacement. Our entertainment programme consists of a unique wine-tasting experience in conjunction with Wijn Verlinden. Every night from 17.00 to 22.00 you can enjoy the surprising wines of our world. Don't hesitate to bring your colleagues to experience this wonderful event.  Reply now and reserver your seat on the TIP Days.  TAF ICT Solutions: tipdays@taf.nlor +31 20 448 880  [IMAGE]  Strategic Energy Management USA 2002 Park Hyatt Hotel, Philadelphia 24-25 June 2002  Energy Management has never been more important than today. As the energy sector continues to deregulate, energy managers are finding themselves increasingly faced with new players, new tools and new choices. A solid strategy which can navigate the challenges of intense competition, online developments and a volatile market supply, is crucial to your business.   Where can you go to network with the important players in the field? Where can you get expert appraisal of your energy strategy? Where can you find out about the latest tools that can make your operations more efficient and more secure? The answer is Philadelphia this June at the Strategic Energy Management USA conference and exhibition.   To find out more or get involved, simply register your interest at http://www.eyeforenergy.com/sem, email Meabh Quoirin at mquoirin@eyeforenergy.comor call +44 20 7375 7158.  [IMAGE]  NEWS ROUND UP - WEEK IN REVIEW   Japan's METI Embraces Renewable Energy    February 20, 2002---Japan's Ministry of Economy, Trade and Industry (METI), said this week that it plans to oblige power retailers from fiscal 2003 and sell certain amounts of energy generated by solar, wind and other types of renewable sources.  According to a draft bill made available Monday, METI aims to obtain cabinet approval on March 1 to submit to the ongoing Diet session a bill on special measures for the use of new energy by power utilities, ministry officials said.   The planned legislation is aimed at tripling the fiscal 1999... Click here for Full Story    Reliance Invites BG to Join in Enron India Bid    February 20, 2002---The bidding wars over Enron Corp's giant Indian power project are heating up as Reliance Industries Ltd., invites BG Group Plc. The British oil and gas major, to join them in a bid for the $2.9 billion project.  However, observers say the fiercely independent BGis expected to give the overture a cold shoulder and enter its own bid for the project, which includes a gas-fired 2,184 MW power plant and adjoining liquefied natural gas (LNG) jetty and storage... Click here for Full Story    In the eye of the Storm TXU Stock Holds Steady    February 19, 2002---With the state in the throes of electricity deregulation, falling natural gas prices and the Enron breakdown Dallas based utility TXU appears to be the clam at the eye of the storm. As utilities stocks, long considered the investment of choice for widows and orphans, continue to fall TXU trades at near its 52 week high of $51.50 per share.  In contrast Reliant Resources of Houston, formerly known as Houston Lighting & Power Co., has seen its stock fall to about $11 a share from $20 per share as recently as mid-November and from a 52-week high of $37.50. Shares of Houston energy trader Dynegy have fallen from $59 a share about a year... Click here for Full Story    Energy Traders Move to Shore up Stockholder Confidence    February 19, 2002---Energy traders are working hard to shore up investor confidence in the wake of Enron. Suffering from what is rapidly becoming known as the "Enron effect" Mirant has lost 60 per cent of its shareholder value. "We were suddenly and unexpectedly downgraded from a BBB flat credit rating to a BB+ by Moody's," said Marce Fuller, Mirant president and chief executive.  "Today we're facing capital markets that are effectively closed to our company." Ms Fuller used her company as a proxy last week to explain to the annual Cambridge Energy Research Associates conference how Enron's rapid demise had undermined the confidence of the public, investors and politicians... Click here for Full Story    Shareholders Sue J.P. Morgan Over Enron Exposure    February 18, 2002---The latest in the long stream of lawsuits surrounding the Enron mess comes from the law firm Glancy & Binkow LLP. The firm announced last Friday a shareholder class action lawsuit against J.P. Morgan Chase & Co, alleging that the No. 2 U.S. bank holding company did not initially divulge the full extent of its exposure to failed energy trader Enron Corp.  The law firm in its complaint charged that ``material omissions and the dissemination of materially false and misleading statements'' related to Enron artificially inflated the bank's stock price.    Troubled energy trader Enron's collapse left J.P. Morgan, one of its top lenders... Click here for Full Story    Bush Plan Spells Relief for Colorado Power Plants    February 18, 2002--- Doug Benevento, director of environmental programs for the Colorado Department of Health and Environment said last week that the State will benefit from President Bush's decision not to crack down on carbon dioxide emissions from coal-fired power plants.  Benevento said the only way to reduce carbon dioxide, the most prevalent of the greenhouse gases Bush hopes to reduce at coal-fired plants, is to switch from coal to natural gas.   That "would have tremendous economic impact on Colorado," Benevento said, because it is a major coal-producing... Click here for Full Story    Mirant Set to Sell Off $1.6 Billion in Assets, Strengthen Balance Sheet    February 15, 2002---Ray Hill, CFO of Mirant Corp., told an audience of investors attending a conference in New York yesterday, that the company's plan to strengthen its balance sheet with $1.6 billion in asset sales is on track. Hill reported that $300 million worth of asset sales is "very well advanced" and will be completed in the next couple of months as the company moves to restore investor confidence in the wake of Enron's collapse.  February 15, 2002---Ray Hill, CFO of Mirant Corp., told an audience of investors attending a conference in New York yesterday, that the company's plan to strengthen its balance sheet with $1.6 billion in asset sales is on track. Hill reported that $300 million worth of asset sales is... Click here for Full Story    Energy Traders Coming to Grips With Risk, Seek Deep Pocket Partners    February 15, 2002---Like nuclear waste after an atomic blast, the fallout from Enron is spreading throughout the energy sector. In the wake of the Houston trader's collapse energy traders are seeking out well-heeled financial partners in an effort to shore up their financial statements.  February 15, 2002---Like nuclear waste after an atomic blast, the fallout from Enron is spreading throughout the energy sector. In the wake of the Houston trader's collapse energy traders are seeking out well-heeled financial partners in an effort to shore up their financial statements...Click here for Full Story     Latest News Now!    [IMAGE]   EDITORIAL [IMAGE]Protestors, Profits and Cows   ARTICLES [IMAGE]Monitoring Energy Use in the Digital Economy [IMAGE]Day 1 Update from Eyeforenergy's Energy, Emissions and Weather Trading Conference [IMAGE]Bush Unveils Kyoto Alternative "GHG, Global Warming and the Battle of Semantics"   NEWS ROUND UP [IMAGE]Japan's METI Embraces Renewable Energy   [IMAGE]Reliance Invites BG to Join in Enron India Bid   [IMAGE]In the eye of the Storm TXU Stock Holds Steady   [IMAGE]Energy Traders Move to Shore up Stockholder Confidence   [IMAGE]Shareholders Sue J.P. Morgan Over Enron Exposure   [IMAGE]Bush Plan Spells Relief for Colorado Power Plants   [IMAGE]Mirant Set to Sell Off $1.6 Billion in Assets, Strengthen Balance Sheet   [IMAGE]Energy Traders Coming to Grips With Risk, Seek Deep Pocket Partners     EVENTS [IMAGE]CO2 Trading 2002: The North American Market [IMAGE] Strategic Energy Management USA [IMAGE] Energy Exchanges Online III   SUBSCRIBE  Please  enter your email address below to subscribe  to the EyeForEnergy newsletter. Thank you         UNSUBSCRIBE  To  unsubscribe from the EyeForEnergy newsletter  please enter your email below. Thank you       If you have any comments about this newsletter  or you would like to suggest future topics or  industry related news, please email  bruno@eyeforenergy.com   [IMAGE]