Are you well informed?  Restructuring Today readers got the story below
last week.  They've also read interviews with Salt River Project's Dick
Silverman, Dennis Bakke from AES Corp, Williams' Keith Bailey and Erle
Nye of TXU, to name just a few, in the last month.  Interviews coming up
include Chuck Watson from Dynegy, Sempra's Steven Baum and Alan Raymond
of Shell Energy.  Restructuring Today tells what the CEOs making the big
decisions are thinking and planning on.

FERC RTO bombshell

Enron's Kean, Skilling
see big impact on
retail markets
---
Wholesale grid to be
90% open in 2-3 years

Enron Chief of Staff Steve Kean "has been actively involved in getting
this stuff done," said CEO Jeff Skilling in introducing Kean to a
conference call last week.
     Today's wholesale power market, Enron finds is only about 20-25%
open.
     "This is going to push for something close to 100%," Kean forecast
but he wants to see how FERC deals with public power first.
     "It's going to be a significant, a significant expansion of the
industrial market," he predicted, "to 80 or 90% levels within a
relatively short period of time."
     As Kean reads FERC, "they appear to be getting rid of pancaking of
rates ... We're going to have 100 potential supply sources we're going
to be able to put in touch with thousands of markets.
     "It's even more significant than simply getting open access tariffs
across the individual utility systems.
     "We're going to be able to move power from where it is to where
it's needed."  Kean thinks the RTOs will facilitate the opening of
retail markets.
     "As we get more workably competitive wholesale markets it's going
to increase our ability to deliver away from traditional pooling points
and serve retail energy markets as well.
     "A huge step forward and a dramatic increase, a multiple increase
in the investible market," he told analysts.
     Skilling agreed with Kean's numbers and went a step farther
predicting the 20% open shift to 90% open will happen in the next two or
three years.
     "We're serving 30,000 sites," Skilling noted.  "We can physically
get power to only about 20% of those locations given the constrictions
in the grid and the difficulty of moving across the grid.
     "This will make it much, much easier to get power much further out
from the market centers where we've been operating today," Skilling
forecast.

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