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     Friday, October 19, 2001 Issue 39   EDITORIAL  Weathering Risk   This week's Briefing is concerned with risk, chiefly that presented by weather in the face of newly deregulated (re-regulated?) energy markets.  Our main feature explains how susceptible the industry has become to increasingly volatile weather, and how the plethora of risks which become presented (include those directly related to earnings) can be alleviated by trading a portfolio of weather derivatives.  We also outline some of the companies who are already emerging as major players in what is already becoming an essential tool for managing financial risk.   On a broader note, our second feature outlines approaches to managing risk in general, and how energy companies can identify and consolidate new opportunities, and reap real financial benefit from minimal risk.   Also, this week saw Eyeforenergy's conference in Singapore, which has been a resounding success.  In a future issue of the Briefing, we will bring you details of events as they unfolded at this three-day meeting of some of the most influential and forward-thinking companies and organizations in the Asian energy market.  For now, you can apply for unlimited access to the speakers' presentations at this conference - more details are available here .   -- Bruno Russell, Acting Editor      FOCUS   Weather is Risky Business for Energy Providers   The pathway to economic oblivion is paved with the bleached bones of those that failed to manage risk. It has been said that economic history is the history of people learning to manage risk. As deregulation takes root, power providers are spreading their reach to the far corners of the globe, in an effort to minimize their risk in any given market.  You don't need a quick trip to Las Vegas to realize that the laws of probability are alive and well in the energy sector. Even the most basic of economic indicators; things that once seemed unpredictable, crop harvest, storms, war, famine, the flow of capital can all be forecast with some degree... Click here for Full Story      INSIGHT   Managing Risk, "That Old Black Magic"   Headlines coming out of the energy sector are hard to escape. One company reports record profits, another record losses, another goes belly up, yet even more merge, acquire, form alliances, expand, contract and jockey for position as deregulation and increasing competition in energy markets thrust them from a historically stable, low risk environment into a brave new world, full of ever changing risk and opportunities.  Add to the mix shareholders screaming for more profits, consumers demanding lower prices, regulators hell bent on proving deregulation is a myth; there is only re-regulation in a new world order. With this dislocation, the first issue for shareholders and managers of the affected companies to come... Click here for Full Story      ADVERTISEMENT  [IMAGE] Eyeforenergy Green Convention 2001  Hotel Le Plaza, Brussels 5-6 November 2001  In light of new EU Directives which aim to double green power's share of the electricity requirement in Europe to 22.1% by 2010, we are very pleased that Johannes Maters of the Commission will deliver this event's opening address, discussing the Commission's role in promoting the use of renewable energy.   He heads a formidable programme of speakers from Europe's energy majors who will be presenting their strategies for commercial green success, including representatives of BP, Enron, Nuon, Erga, RWE Power, JP Morgan and many more.   For full programme and speaker details, click here   [IMAGE]  Landmark Graphics and Petroleum Place -- Accelerating Business Efficiency   Landmark Graphics and Petroleum Place Delivers Enormous Efficiencies within Acquisition and Divestiture. How? Through online delivery of data and evaluation tools within an APS environment to afford dramatic efficiencies for both sellers and buyers.   Visit www.petroleumplace.com   [IMAGE]  The Business of Fuel Cells for Stationary Applications Le Plaza Hotel, Brussels, November 27-28th   Business models, strategic alliances, distribution channels, early market opportunities and financing will be discussed in Brussels from November 27th to 28th.  Companies delivery presentations include: End users and distributors (RWE, Gaz de France, UK local government), Manufacturers (Alstom Ballard, Siemens Westinghouse, Global Thermoelectric, Cermaic Fuel Cells Ltd., Zetek Power), Component and catalyst providers (DuPont, Johnson Matthey Fuel Cells, Vandenborre, Idatech), Investors and independent financial analysts (Metasource, Phil Doran), and Industry Associations (World Fuel Cell Council, COGEN Europe).  As this event has been produced by our sister organization, EyeforFuelCells, we are pleased to announce that subscribers to the Eyeforenergy Briefing automatically qualify for a 20% discount on registration.  Just quote "brief" on any registration material.  For the full programme and registration, please click here: http://www.eyeforfuelcells.com/events/europe2001/programme.shtml   [IMAGE]  NEWS ROUND UP - WEEK IN REVIEW   Green Mountain Stakes Claim to Texas Sun, Plans Two Solar Projects   October 16, 2001---Two solar arrays capable of producing a combined 100kW are on the drawing boards of Green Mountain Energy Company. At the same time the company announced the launch of the Big Texas sun Club, billed as an easy way for Green Mountain customers to support the company's solar energy efforts.  "The launch of this new product and the development of these new solar facilities is a result of the tremendous customer demand we have experienced in the Texas market," said Gillan Taddune, vice president and general manager of the Texas region for Green Mountain Energy Company. "We have large... Click here for Full Story     Scientists Urge U.S. to Develop More Renewable Energy Resources   October 15, 2001---In a report released today the Union of Concerned Scientists urges the United States to take a pro-active stance on renewable energy. The report says the country should establish a goal of producing at least 20 percent of its electricity from wind, solar, geothermal and other renewable energy sources by 2020.  The Cambridge, Massachusetts-based group said currently more than half of the electricity produced in the United States comes for power plants that burn coal, with less than 2 percent of the country's electricity coming from renewable sources.   "Adopting a renewable energy standard would diversify... Click here for Full Story     Enron's European Electricity Trading Takes Off   October 12, 2001---Houston based energy giant Enron reports that it has traded five times as much wholesale electricity in continental Europe during the first half of this year than it did in a similar period last year.  Continental power trading director Gregor Baeumerich told Reuters the company traded 523 terawatt hours in the first half - roughly equivalent to annual German power demand - up from 93 terawatt hours in the first half of 2000.   ``On average we are now doing around 200 deals a day with about... Click here for Full Story     Calpine to Float $2.56 Billion Bond Offering     October 11, 2001---Calpine announced Thursday that it plans to raise about $2.56 billion from a four-currency bond offering and a sale of pass-through certificates.   According to a source familiar with the scheme the San Jose, California based independent power company, has enjoyed strong demand... Click here for Full Story     Shell Marches Back to Profitability     October 10, 2001---After losing some R$100 million between 1999 and 2000 Shell is back in the black and experiencing considerable growth in 2002. Shell also promised to conquer the leadership of the market over the next years. The company will invest R$180mil in assets in 2002, a growth of 33% if... Click here for Full Story     Puget Energy's Stock Dips as Regulators Reject Rate Increase     October 9, 2001---As regulators rejected an emergence rate increase Puget Energy's management slashed the Washington utility's earnings report, sending the stock to its lowest price in eighteen months.   The company's utility arm, Puget Sound Energy had asked Washington State's Utilities and... Click here for Full Story      Latest News Now!       [IMAGE]     EDITORIAL [IMAGE] Weathering Risk    ARTICLES [IMAGE] Weather is Risky Business for Energy Providers [IMAGE] Managing Risk, "That Old Black Magic"    NEWS ROUND UP [IMAGE] Green Mountain Stakes Claim to Texas Sun, Plans Two Solar Projects  [IMAGE] Scientists Urge U.S. to Develop More Renewable Energy Resources  [IMAGE] Enron's European Electricity Trading Takes Off  [IMAGE] Calpine to Float $2.56 Billion Bond Offering  [IMAGE] Shell Marches Back to Profitability  [IMAGE] Puget Energy's Stock Dips as Regulators Reject Rate Increase     EVENTS [IMAGE]  Green Convention 2001   [IMAGE]  EEO Europe - Energy Trading in the New Economy   [IMAGE]  Emissions Trading 2002   [IMAGE]  Weather Trading 2002      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]