Power & Natural Gas
Mark-to-Market Brouhaha; Buy Energy Marketers

* Recent press has questioned accounting practices of energy
marketers.  Concerns center on use of "mark-to-market" accounting
* Stocks down 8.7% since Monday
* View concerns as unfounded
* Reiterate 1H (Buy, High Risk) ratings on Enron (ENE), Dynegy (DYN)
and 2M (Outperform, Medium Risk) on Duke Energy (DUK)

 <<trc71789.pdf>>

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

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 - trc71789.pdf