-----Original Message-----
From: 	Courtney Cleman <Courtney.Cleman@morganstanley.com>@ENRON  
Sent:	Monday, October 01, 2001 9:01 AM
To:	kkonolig@ms.com
Subject:	Watt's News-The Weekly Update/Kit Konolige/MS Electric Utilities  Research

Morgan Stanley Electric Utilities Research

Kit Konolige  (212) 761-6237
David Reynolds  (212) 761-6078
Carrie Stevens  (212) 761-6183
Chris Bezler  (212) 761-4487
Julianne Cappos  (212) 761-3115
Douglas Levine  (212) 761-7134

Watt's News - The Weekly Update

* Free markets will not die-ALJ recommends NO refunds in the Northwest
A catalyst that could help support gencos' valuation to a
premium multiple once again. Could have positive implications
for pending CA refunds.
* RRI pays 15.8X for ORN shares, lowers growth rate to 15%
Critical acq. as RRI's prior '02 EPS guidance now 15% lower
due to lower CA power prices. RRI target price lowered to $25,
maintain Outperform-V. ORN lowered to Neutral.
* AES lowered to Neutral - misses EPS due to co. specific items
primarily
Only a portion of $0.50 shortfall in earlier guidance is
understandable. 2001E cut from $1.85 to $1.25, the low end of
co.'s guidance.
* Many companies reaffirm '01 & '02 EPS - validating earnings power
AEP, CPN, DUK, DYN, ETR, ILA, MIR, NRG, PPL & SRE
reaffirm '01 EPS guidance. CPN, DYN, ETR, MIR also reaffirm
'02 EPS guidance. Informally reaffirmed - D, PEG & TXU.
 - 112681.pdf 
 - Courtney.Cleman.vcf