SSB Conference Call
Tuesday, February 13, 2001
2:00 PM EST

Beyond California: The Power & Merchant Energy Outlook for 2001

Recent Publication: The Power Curve and Merchant Energy Monthly

We see continued strong fundamentals in the wholesale power markets as
we move into 2001.

Forward markets show average U.S. power prices 92% higher in 2001 than in
2000.

The western hubs have seen the most staggering increases; however, the
markets foretell stronger prices across the country in 2001.

We continue to recommend the Power Producers, based on both our power price
and spark spread analyses, which show strengthening spark spreads in the
United States, despite the record highs recently seen in the natural gas
markets.  We highlight Calpine, NRG Energy, and Mirant.

Our volatility indices demonstrate a dramatic shift in historical volatility
to the western hubs and away from the Midwestern markets of 1998-99.  We
expect volatility to persist in the West, likely accompanied by higher
volatility in the remainder of the country in 2001.  This benefits Energy
Merchants, and we highlight Enron, Dynegy, Duke, and El Paso.

Dial In
800-229-0281 US
706-645-9237 Intl

Replay
800-642-1687 US
706-645-9291 Intl
Reservation 735670 (replay until 2/15)

hosted by:

Raymond Niles
Director
Power & Natural Gas Research
Salomon Smith Barney
212-816-2086



Raymond C. Niles
Power/Natural Gas Research
Salomon Smith Barney
(212) 816-2807
ray.niles@ssmb.com

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