Energy Market Report
Thursday, December 27, 2001

*See attached pdf file.
__________________________________________________________
Western Pre-Scheduled Firm Electricity Prices($/MWh)
December 26, 2001 for December 30, 2001

Peak(Heavy)
                   Low     Change**   High    Change**
NW/N. Rockies*    21.00      NA       22.00      NA
Mid-Columbia*     21.00      NA       22.00      NA
COB*              19.25      NA       20.50      NA
N. California*    19.25      NA       23.00      NA
Midway/Sylmar*      NA       NA         NA       NA
S. California*    18.50      NA       25.00      NA
Mead*             18.50      NA       19.00      NA
Palo Verde*       18.00      NA       19.00      NA
Inland SW*        18.00      NA       19.00      NA
4-Corners*        18.25      NA       19.50      NA
Central Rockies*  14.50      NA       15.50      NA
__________________________________________________________
Off-Peak(Light)
                   Low     Change**   High    Change**
NW/N. Rockies*    21.00      NA       22.00      NA
Mid-Columbia*     21.00      NA       22.00      NA
COB*              19.25      NA       20.50      NA
N. California*    19.25      NA       23.00      NA
Midway/Sylmar*      NA       NA         NA       NA
S. California*    18.50      NA       25.00      NA
Mead*             18.50      NA       19.00      NA
Palo Verde*       18.00      NA       19.00      NA
Inland SW*        18.00      NA       19.00      NA
4-Corners*        18.25      NA       19.50      NA
Central Rockies*  14.50      NA       15.50      NA

*Denotes trading of flat, 24-hour products.
**"NA" changes are not applicable because prices for on and off peak goods
are not comparable to flat products.
__________________________________________________________
Western Pre-Scheduled Firm Electricity Prices($/MWh)
December 26, 2001 for December 31, 2001

Peak(Heavy)
                   Low     Change**   High    Change**
NW/N. Rockies     22.75      NA       23.25      NA
Mid-Columbia      22.75      NA       23.25      NA
COB               24.00      NA       24.75      NA
N. California     26.00      NA       26.50      NA
Midway/Sylmar       NA       NA         NA       NA
S. California     25.30      NA       27.00      NA
Mead              25.00      NA       26.00      NA
Palo Verde        25.00      NA       26.00      NA
Inland SW         25.00      NA       26.00      NA
4-Corners         24.75      NA       26.00      NA
Central Rockies   21.50      NA       22.50      NA
__________________________________________________________
Off-Peak(Light)
                   Low     Change**   High    Change**
NW/N. Rockies     21.00      NA       22.00      NA
Mid-Columbia      21.00      NA       22.00      NA
COB               19.25      NA       20.50      NA
N. California     19.25      NA       23.00      NA
Midway/Sylmar       NA       NA         NA       NA
S. California     18.50      NA       25.00      NA
Mead              18.50      NA       19.00      NA
Palo Verde        18.00      NA       19.00      NA
Inland SW         18.00      NA       19.00      NA
4-Corners         18.25      NA       19.50      NA
Central Rockies   14.50      NA       15.50      NA

**"NA" changes are not applicable because prices for on and off peak goods
are not comparable to flat products.
__________________________________________________________
Gasping Over Gas

As EMR staff and Western traders trickled into work from their extended
holidays, peak prices in the Western energy markets backed down slightly
from levels seen on Wednesday.  "Well, weather's not atplay here - there's a
lot of water for the hydro, it's cool, but not cold, and it's the holidays,"
explained one Northwest marketer. "There's just not a lot of motivation to
buy or sell," he added.  Off-peak power firmed up slightly across the entire
WSCC, likely due to increased overnight heating demand, some analysts
ventured.  Other likely contributors to Thursday's softening of WSCC peak
power prices were high gas inventories and lower spot prices, according to
players.  The AGA's weekly natural gas inventory report was released on
Thursday, showing a draw of 81 bcf - a bigger draw than the industry
expectations of 65 to 70 bcf, but well below last year's draw of 175 bcf and
the historical average of 145 bcf.  Combined with the fact that current U.S.
stocks stand at 2.980 tcf, or 90% of capacity, Thursday's natural gas news
wreaked havoc on NYMEX futures prices.  The January contract expired
Thursday after plummeting 35.6 cents to settle at 2.555$/mmBtu, while the
February contract trailed along, losing 31.8 cents to close at 2.619$/mmBtu.
"I felt like I was on a sinking ship," exclaimed one exasperated gas
marketer, "Everyone was yelling 'Bail, bail, bail!'"  Despite the excitement
in natural gas markets, most energy traders reported another day of thin and
illiquid trading as most businesses and all schools will remain closed until
after the New Year.

Northwest peak power prices for the Sunday-Monday package eased off almost
2$/MWh from levels seen on Wednesday.  Monday peak goods at Mid-Columbia
traded in a tight range from 22.75 to 23.25$/MWh.  Temperatures in the
Northwest ranged from the upper-40s west of the Cascade Mountains to below
freezing east of the Cascades.  The five-day forecast called for
temperatures across the region to converge on normal as the weekend
progresses into Monday.  The latest six-to-ten called for temperatures to
range from normal to below normal across the region from January 2 through
6.  Flows at Chief Joseph were revised slightly upward, coming in at 90 kcfs
Friday, 75 kcfs Saturday, 60 kcfs Sunday, 90 kcfs Monday, 55 kcfs New Year's
Day, and 100 kcfs Wednesday through next Thursday.  There was no unit news
to report in the Northwest on Thursday.

Amid near-normal weather forecasts and weak spot gas prices, heavy load
energy costs fell in the Golden State on Thursday, while light load prices
were up on the usual all-day Sunday premium. Sunday-Monday package prices at
SP15 won the pole position on Thursday, with peak goods changing hands
between 25.3 and 27$/MWh, while off-peak power was traded from 18.5 to
25$/MWh.  "L.A. is supposed to be about 10 degrees warmer than load centers
farther north so weather's probably not a factor, but New Year's loads are
usually higher, particularly in Pasadena with the Rose Bowl and all,"
speculated one California player.  Another added that liquidity was still
affecting the market on Thursday.  Spot natural gas prices at the Southern
California border followed the general trend when they slipped 23 cents,
trading between 2.52 and 2.57$/mmBtu.  In generation news, gas-fired Moss
Landing #6 (739 MW) returned to service on Thursday.  The unit has been down
since December 19 for unplanned maintenance.  Los Medanos (550 MW) was
operating at 125 MW, down from Wednesday's level of 200 MW.  Additionally,
there was an extra 640 MW off-line on Thursday from units with a capacity
less than 250 MW.  On the weather front, the outlook was less than exciting,
with temperatures across the state expected to linger within five degrees of
normal through Monday.  Overnight lows were forecast uniformly in the
mid-40s.  The latest six-to-ten from the NWS called for above-normal
temperatures from January 2 to 6.

Not even sustained below-normal temperatures could prop up power prices for
peak goods in the Southwest on Thursday against the gas-led tumble that
rattled the WSCC.  Peak goods at Palo Verde traded in a dollar range from 25
to 26$/MWh, a softening of 4$/MWh on the high end.  Temperatures were normal
to below normal across the region, and one couldn't even break a sweat in
Phoenix on Thursday.  The five-day forecast called for temperatures to heat
up on average, but they were still not expected to warm into above-normal
territory.  The latest six-to-ten predicted temperatures to remain normal or
below normal through January 6.  Nary a murmur was heard of unit outages in
the region on Thursday.

David Ramberg and Jessie Norris
_________________________________________________________

Western Generating Unit Outages

Current                            Begins          Ends          Reason
CAISO units <250/6515 total          NA             NA
planned/unplanned*
Alamitos #3/320/gas               04-Dec-01         ?            planned
Alamitos #4/320/gas               23-Dec-01         ?            planned
Big Creek Project/1020/hydro      09-Dec-01         ?         @752MW,
planned
El Segundo #3/337/gas             02-Oct-01         ?            unplanned
Etiwanda #3/320/gas               22-Dec-01         ?            planned
Etiwanda #4/320/gas               22-Dec-01         ?            planned
Grand Coulee #19/600/hydro        10-Dec-01       March          repairs
Helms PGP #2/407/hydro            01-Oct-01         ?            planned
Hyatt/Thermalito/933/hydro        02-Oct-01         ?      @607 MW,
unplanned
Los Medanos/550/gas               25-Dec-01         ?      @125 MW,
unplanned*
Morro Bay #4/336/gas              22-Dec-01         ?            planned
Ormond Beach #2/750/gas           05-Oct-01         ?      @350 MW,
unplanned
Pittsburg #6/317/gas              22-Nov-01         ?            planned
Sutter Plants/546/gas             04-Dec-01         ?            planned

For unit owners refer to pdf version.
*Indicates a change from previous EMR.
______________________________________________________________________

Eastern Markets Pre-Scheduled Firm Power Prices ($/MWh)

December 27, 2001 for December 28, 2001

Peak (Heavy) in $/MWh
                 Low     Change   High      Change
Into Cinergy    19.00    -3.00    21.50     -5.50
Western PJM     25.50    -0.50    26.35     -0.15
Into Entergy    21.00    -2.50    22.50     -3.00
Into TVA        20.00    -4.00    20.50     -5.00
___________________________________________________________
As natural gas prices dropped considerably and below-normal temperatures
reigned supreme, peak power prices for Friday delivery settled lower across
the Eastern Interconnect.  "The Jan/Feb contract came off a lot today, but
otherwise there wasn't much interest or liquidity in the market," commented
one southern trader.  The AGA's weekly inventory report listed an 81 bcf
draw on Thursday, above most industry forecasts of 65 to 70 bcf.  NYMEX
Henry Hub futures were unable to sustain recent gains, and slipped
substantially.  On its last day of trading, the January contract sunk like a
stone, losing a traumatic 35.6 cents to close at 2.555$/mmBtu.  February
fell an equally depressing 31.8 cents to end at 2.619$/mmBtu.

Despite a new unit outage and continued cold weather, day-ahead electricity
prices edged down in the Mid-Atlantic on Thursday.  According to sources,
Indian Point #2 tripped off-line sometime Wednesday and remained down on
Thursday.  Some traders speculated the unit would be back up Saturday,
December 29.  Western PJM daily goods changed hands between 25.5 and
26.35$/MWh.  "Someone was buying a lot of power early so prices were strong,
but after that they fell.  There was some West to East congestion which kept
them from dropping too much and the real-time number was also robust,"
summed up one PJM player.  LMPs lingered above 40$/MWh for two hours in the
late morning, but were averaging 25.85$/MWh through 15:00 EST.  The five-day
weather outlook predicted sustained below-normal temperatures through
Monday, with highs uniformly expected in the mid-30s across PJM.  The latest
six-to-ten called for below-normal temperatures from January 2 to 6.

Forecasts for bitterly cold temperatures by the weekend cheered Midwestern
sellers, but despite the good news heavy load energy costs for Friday
delivery slumped on Thursday.  Into Cinergy pieces traded between 19 and
21.5$/MWh, losing a painful 5.5$/MWh off the high end and 3$/MWh off the
low.  "Load forecasts for the new week are higher, so we should see some
strength on Friday," opined one trader, while another said, "I think people
will keep the thermostat up and their gas fireplaces crackling over New Year
's."  No new curtailment information was available on Thursday.  High
temperatures were expected in the low-20s to high-teens by Saturday, with
little change expected through Monday.  The most current six-to-ten
predicted below-normal temperatures from January 2 to 6.

Amid much weaker natural gas prices, peak electricity prices tumbled in the
Southeast on Thursday.  Into Entergy deals were done from 21 to 22.5$/MWh,
with the bulk of transactions seen nearer the high end.  Into TVA prices
were heard between 20 and 20.5$/MWh, losing at least 4$/MWh off both ends,
while traders said the hub was very illiquid.  Friday forecasts predicted
slightly below-normal temperatures, with overnight lows in the 28 to 34
degree range.  Substantial cooling was expected by Sunday and Monday, with
lows predicted in the mid-20s across the entire region.  The latest
six-to-ten called for below-normal temperatures from January 2 to 6.
___________________________________________________________
California ISO Congestion Index in $/MWh

                         Path                 Peak   Off-peak
for 28-Dec-01         NW1 to NP15             0.00     0.00
                      NW3 to SP15             0.00     0.00
                      AZ3 to SP15             0.00     0.00
                      LC1 to SP15             0.00     0.00
                      SP15 to NP15            0.00     0.00


OTC Forward Peak Electricity Contracts in $/MWh

                    Mid-C              PV              SP-15
                Bid      Ask      Bid      Ask      Bid      Ask
BOM             --       --       --       --       --       --
January        24.75    26.25    27.25    28.25    28.50    29.50
February       21.50    23.00    26.00    27.00    27.00    28.00
March          19.00    20.50    25.50    26.50    26.50    27.50
Q1 '02         21.50    23.00    25.75    26.75    27.50    28.50
Q2 '02         16.50    18.00    28.00    29.00    28.00    29.00
Q3 '02         33.50    35.50    43.75    44.75    42.00    43.00
Q4 '02         28.50    30.00    28.75    29.75    31.00    32.00
Cal '03        30.75    32.25    34.00    35.00    35.00    36.00


Represents the most recent bid/ask spread obtainable
by the Energy Market Report.



Alberta Power Pool Index (C$/MWh)

                    Peak(14)   Peak(16)   Off-Peak    Flat     Change
for  26-Dec-01       24.48      22.85      16.88      20.98     5.76



BPA's Offer for 12/27/01 and 12/29/01.

Hours        Amount          NW delivered        COB/NOB delivered

7-22         100MW           Market Price*          Market Price*

*Market price will be determined at time of request.



NYMEX Henry Hub Gas Futures in $/mmBtu

                 Close        Change
        Jan      2.555        -0.356
        Feb      2.619        -0.318



Natural Gas Spot Prices in $/mmBtu

                  Low          High
Sumas             2.40         2.45
So. Cal Border    2.52         2.57
San Juan          2.37         2.42
__________________________________________________________

Economic Insight, Inc. - 3004 SW First, Portland, Oregon 97201,
Telephone (503) 222-2425, Internet e-mail emr@econ.com -
Copyright, Economic Insight, Inc. 2001.