Planned Enron Plants Jolts Japan Power Industry - Nikkei
Dow Jones International News, 11/29/00

USA: Enron's Skilling sees demise of integrated energy firms.
Reuters English News Service, 11/29/00

PUC Approves Plan for New Power Company to Supply Energy to PECO Customers
PR Newswire, 11/29/00

PG&E, Sempra, Morgan Stanley Defendants In Calif Lawsuit
Dow Jones Energy Service, 11/29/00

Alberta Cancels Power Deregulation, Continue to Set Prices
Bloomberg, 11/29/00

Enron Plans to Seek Approval for Power Plant in Northern Japan
Bloomberg, 11/29/00






Planned Enron Plants Jolts Japan Power Industry - Nikkei

11/29/2000
Dow Jones International News
(Copyright (c) 2000, Dow Jones & Company, Inc.)

TOKYO (Nikkei)--Enron Corp. unveiled plans Wednesday to have subsidiary 
E-Power KK build a liquefied natural gas -fueled power plant with an output 
capacity of 2 million kilowatts in Aomori Prefecture, Northern Japan, sending 
a shock wave through the Japanese electric power industry, the Nihon Keizai 
Shimbun reported in its Thursday morning edition. 
The Texas-based energy company aims, from around 2007, to supply electric 
power to large-lot users in the Tohoku and Tokyo metropolitan regions at 
prices lower than those charged by domestic utilities. It may double the 
output capacity to 4 million kilowatts in the future, the business daily 
reported.
The scale of the project is highlighted by the fact that electric power 
demand in Aomori Prefecture peaks at 1.33 million kilowatts in summer, the 
report said. 
E-Power, a joint venture launched by Enron with Orix Corp. (IX or 8591), also 
intends to build coal-fueled power plants with an output capacity of about 
500,000kw each in Fukuoka and Yamaguchi Prefectures, Western Japan. 
These projects would give Enron an output capacity that would put it in the 
same league as Hokkaido Electric Power Co. (J.HEP or 9509), Hokuriku Electric 
Power Co. (J.HKE or 9505) and Shikoku Electric Power Co. (J.SEP or 9507). 
An official of the Ube Chamber of Commerce and Industry welcomed Enron's plan 
to build a plant in the Yamaguchi Prefecture town, saying it "will help 
promote the local economy." 
Many Japanese cities have seen the hollowing out of their industrial base 
since the collapse of the bubble economy. 
Some industry watchers, however, questioned the viability of Enron's plans, 
saying that the U.S. energy firm could only undersell domestic utilities by 
raising its output capacity to a significantly high level. But to do so, they 
explained, Enron will not only need to shell out a large amount of investment 
capital, but also clear other obstacles such as winning favorable 
environmental assessments and building facilities to unload fuel. 
Most importantly, the scope of Japan's deregulation of the retail market for 
electric power must be expanded further if Enron hopes to successfully carry 
out its plans, they said, according to the report. -0- 29/11/00 23-28G

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


USA: Enron's Skilling sees demise of integrated energy firms.

11/29/2000
Reuters English News Service
(C) Reuters Limited 2000.

HOUSTON, Nov 29 (Reuters) - Enron Corp. President and Chief Operating Officer 
Jeff Skilling said on Wednesday he expects technology to lead to the demise 
of the traditional "vertically integrated" energy company whose operations 
run from oil exploration to selling gasoline at the pump. 
"I think what you are going to see is the disintegration of this business 
into hundreds and maybe thousands of smaller enterprises that are tied 
together electronically or virtually," Skilling told the Arthur Andersen 
Energy Symposium in Houston.
Enron, which began as a natural gas pipeline operator, seized opportunities 
created by energy deregulation to become North America's biggest wholesale 
marketer of gas and electricity. It has also been a pioneer in the use of the 
Internet to trade gas and power and a growing number of non-energy 
commodities. 
Skilling said industrial companies had been integrated in the past to cut 
down on the transaction costs involved at different stages of the production 
chain. 
However, technology, particularly Internet technology, was causing such 
transaction costs to plummet, thus undermining the rationale for vertical 
integration, he said. 
Big integrated companies would be forced to recognize that they could not be 
the lowest cost producer of crude oil, the lowest cost refiner and the lowest 
cost gasoline marketer, he said. 
Skilling predicted this would lead to the breaking up of big integrated 
companies and the emergence of many smaller specialist companies which 
enjoyed significant cost advantages in their own particular field. 
Skilling said today's big vertically integrated energy companies were an 
anachronism from the days of Standard Oil founder John D. Rockefeller. 
"It's an industry structure that was designed by John D. Rockefeller in 1870 
and it hasn't changed much in 130 years. I think it will change a lot over 
the next 10 or 15 years," he said.

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

PUC Approves Plan for New Power Company to Supply Energy to PECO Customers

11/29/2000
PR Newswire
(Copyright (c) 2000, PR Newswire)

HARRISBURG, Pa., Nov. 29 /PRNewswire/ -- Approximately 299,000 PECO 
residential customers will receive discounted electricity from the New Power 
Company next year under a plan approved today by the state Public Utility 
Commission (PUC). 
Customers choosing to participate in the program will receive power from New 
Power beginning in January 2001 and through January 2004. New Power is a 
joint effort by Enron, America Online and IBM. PECO will continue to provide 
transmission and distribution service.
PUC Communications Manager Kevin Cadden explained that the customers would be 
randomly selected from those who have not shopped for an alternative supplier 
under the state's electric competition program. 
"PECO will select customers who have not actively participated in our 
program," he said. "However, customers have the right to opt out of this 
program and to return to PECO at any time without a penalty. They may also 
choose to shop for a supplier other than New Power or PECO." 
Today's action is intended to create more competition in the Philadelphia 
area by allowing a competitor to provide default service to PECO customers. 
Customers who do not shop under the state's electric competition law 
automatically continue to receive electricity from their local electric 
company. 
The PUC directed PECO in the utility's 1998 restructuring order and in its 
merger application with Unicom to develop a plan beginning in 2001 for 
assigning at least 20 percent of its residential customers to another 
supplier. 
The company asked for competitive bids on the proposal on August 24 and 
selected New Power on October 3. 
For additional press releases or more information on the PUC, visit their 
website at http://puc.paonline.com.


/CONTACT: Kevin Cadden, Communications Manager of the PA Public Utility 
Commission, 717-787-5722 or fax, 717-787-4193/ 16:02 EST 

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

PG&E, Sempra, Morgan Stanley Defendants In Calif Lawsuit

11/29/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

LOS ANGELES -(Dow Jones)- Energy marketing and trading companies that conduct 
business in California were named in a lawsuit filed in San Diego Superior 
Court Wednesday alleging traders "fixed" wholesale power prices and conspired 
with other companies to raise the "market clearing bid" for energy sold into 
the state's Power Exchange, resulting in more than $1 billion in electricity 
overcharges last summer. 
The complaint names as defendants PG&E Energy Trading, a unit of PG&E Corp. 
(PCG), Dynegy Power Marketing Inc. (DYN), Morgan Stanley Capital Group Inc., 
Enron Energy Services and Enron Power Marketing Inc (ENE), Reliant Energy 
Services, a unit of Reliant Energy Inc. (REI) Sempra Energy Trading and 
Sempra Energy Resoures, a unit of Sempra Energy Inc. (SRE) Southern Company 
Energy Marketing (SO), Williams Energy Marketing and Trading and Williams 
Energy Services Co., Duke Energy Trading and Marketing LLC (DUK) and NRG 
Energy (NRG).
The complaint, filed on behalf of sole plaintiff Ruth Hendricks pending class 
action status by a judge, alleges the companies "anticompetitive conduct 
included combining to restrain the amount of energy available through the 
(CalPX) and ISO energy markets, conspiring to illegally obtain and trade 
information relating to energy supply, pricing and demand, and combining to 
raise the market clearing bid for electric energy on the CalPX wholesale 
markets." -By Jason Leopold; Dow Jones Newswires; 323-658-3874;
jason.leopold@dowjones.com

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

Alberta Cancels Power Deregulation, Continue to Set Prices
11/29/0 18:27 (New York)

Alberta Cancels Power Deregulation, Continue to Set Prices

     Edmonton, Alberta, Nov. 29 (Bloomberg) -- The Canadian
province of Alberta canceled an auction of electricity production
and won't open its power markets next year as planned because of
consumers' fears that deregulation will boost prices.
     The government yesterday shelved plans to allow suppliers to
charge consumers market rates for electricity starting Jan. 1, and
canceled price increases it had previously approved.
     To prepare for competition, the government in August
auctioned rights to buy electricity from Alberta's power plants
for C$1.17 billion ($760 million).
     Buyers in the auction expected to be able to re-sell the
power at market prices, which can surge during heat waves or
shortages. Now regulators will continue to set the rates at which
power can be sold, limiting potential returns. In addition, the
government canceled plans to auction off four more power-sale
contracts today.
     One of the bidders in the earlier auction was Houston-based
Enron Corp., the world's biggest energy trader. It paid C$294.8
million to buy the output of a 706-megawatt power plant for 20
years. Enron spokesman Eric Thode said the company is still
evaluating Alberta's announcement.
     Rate-increase hearings at the Alberta Energy and Utilities
Board have been suspended. The province said it will create
regulations for electricity suppliers and the Power Pool of
Alberta, which auctions electricity from the province's
generators.
     Power import and export regulations for the pool will also be
changed, the government said.
     Last week the Globe & Mail newspaper reported officials from
Canada's Competition Bureau raided offices of Powerex Corp., the
energy trading arm of the British Columbia Hydro & Power
Authority, and Enron's Canadian unit, alleging the companies
conspired to raise electricity prices through the Pool.
     Enron fell $8.19 to $70.25 on the New York Stock Exchange.

--Gene Laverty in Calgary (403) 232-8188, or
glaverty@Bloomberg.net, through the Princeton newsroom (609) 279-
4000/alp



Enron Plans to Seek Approval for Power Plant in Northern Japan
11/29/0 14:22 (New York)

Enron Plans to Seek Approval for Power Plant in Northern Japan

     Houston, Nov. 29 (Bloomberg) -- Enron Corp., the world's
largest energy trader, said it will seek government approval to
build a natural-gas-fired power plant in northern Japan, a company
spokeswoman said.
     The plant, Enron's first in Japan, would be capable of
generating 2,000 megawatts, enough to light 2 million U.S. homes,
said Jackie Gentle, an Enron spokeswoman. It would take at least
six years to get the plant built and operating, she said. Gentle
said Enron wouldn't provide estimates of construction costs.
     The plant would be built by Enron's EPower Corp. unit. EPower
itself is a unit of Encom, in which Enron owns a 68 percent stake.
The rest of Encom is held by Orix Corp., Japan's biggest leasing
company, and private investors, Gentle said.
     EPower is considering building power plants in at least two
other places in Japan, including the southwestern city of Ube,
Gentle said. Japan began opening its electricity market to
competition in March.
     The plant in northern Japan will be fueled with liquefied
gas, Gentle said, requiring construction of a processing plant.
Gas is cooled into a liquid so it can be shipped using special
tankers when no pipelines are available. Almost all of Japan's
natural gas is imported, and arrives liquefied, according to the
U.S. Department of Energy.
     Shares of Enron fell $6.94 to $71.50 in midafternoon trading
amid signs that slowing U.S. economy will reduce energy demand.
Before today, they had risen 77 percent this year.
     Orix fell 10 yen to 10,810. Its shares have fallen 44 percent
since the first of the year.

--James Mosher in the Princeton newsroom (609) 279-4131, or at
jmosher@bloomberg.net/alp