Energy Market Report
Friday, December 28, 2001

*See attached pdf file.
__________________________________________________________
Western Pre-Scheduled Firm Electricity Prices($/MWh)
December 28, 2001 for January 1, 2002

Peak(Heavy)
                   Low     Change**   High    Change**
NW/N. Rockies*    21.00      NA       24.00     NA
Mid-Columbia*     21.00      NA       24.00     NA
COB*              21.00      NA       24.00     NA
N. California*    21.50      NA       25.00     NA
Midway/Sylmar*      NA       NA         NA      NA
S. California*    20.50      NA       24.50     NA
Mead*             20.00      NA       24.25     NA
Palo Verde*       18.00      NA       22.00     NA
Inland SW*        18.00      NA       24.25     NA
4-Corners*        20.00      NA       24.25     NA
Central Rockies*  18.00      NA       23.00     NA
__________________________________________________________
Off-Peak(Light)
                   Low     Change**   High    Change**
NW/N. Rockies*    21.00      NA       24.00     NA
Mid-Columbia*     21.00      NA       24.00     NA
COB*              21.00      NA       24.00     NA
N. California*    21.50      NA       25.00     NA
Midway/Sylmar*      NA       NA         NA      NA
S. California*    20.50      NA       24.50     NA
Mead*             20.00      NA       24.25     NA
Palo Verde*       18.00      NA       22.00     NA
Inland SW*        18.00      NA       24.25     NA
4-Corners*        20.00      NA       24.25     NA
Central Rockies*  18.00      NA       23.00     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 28, 2001 for January 2, 2002

Peak(Heavy)
                   Low     Change**   High    Change**
NW/N. Rockies     23.50      NA       27.00     NA
Mid-Columbia      23.50      NA       27.00     NA
COB               25.00      NA       27.50     NA
N. California     26.75      NA       30.25     NA
Midway/Sylmar       NA       NA         NA      NA
S. California     26.75      NA       30.75     NA
Mead              27.00      NA       30.00     NA
Palo Verde        26.00      NA       29.25     NA
Inland SW         26.00      NA       30.00     NA
4-Corners         27.00      NA       28.00     NA
Central Rockies   23.75      NA       24.25     NA
__________________________________________________________
Off-Peak(Light)
                   Low     Change**   High    Change**
NW/N. Rockies     21.00      NA       24.00     NA
Mid-Columbia      21.00      NA       24.00     NA
COB               21.00      NA       24.00     NA
N. California     21.50      NA       25.00     NA
Midway/Sylmar       NA       NA         NA      NA
S. California     20.50      NA       24.50     NA
Mead              20.00      NA       24.25     NA
Palo Verde        18.00      NA       22.00     NA
Inland SW         18.00      NA       24.25     NA
4-Corners         20.00      NA       24.25     NA
Central Rockies   18.00      NA       23.00     NA

**"NA" changes are not applicable because prices for on and off peak goods
are not comparable to flat products.
__________________________________________________________
Enron "Stock" (Certificates) Soars

As power contracts moved into the New Year, marketers across the WSCC saw
prices firm up, if only marginally.  "We're still looking at some pretty
mild weather forecasts, and precipitation and flows are still healthy,"
noted one Northwest player.  Enron once again graced the wire agencies on
Friday, as always garnering dubious honors.  Collectors can now buy Enron
stock certificates for up to $99 on eBay.  That is almost $9 more than the
actual stock sold for on its best day!  Evidently, Enron's historic demise
has placed its stock in the same Hall of Fame as stock certificates from
Czarist Russia and from now-nonexistent countries, and is a sought-after
commodity by collectors and enthusiasts.  Meanwhile, abundant natural gas
supplies have kept a lid on NYMEX Henry Hub futures prices.  The February
contract, trading for its first day in the front-month position, gained 15.5
cents over the day's trading, erasing half of Thursday's loss, to close at
2.774$/mmBtu.  March followed hot on February's heels, rising 11.6 cents to
settle at 2.746$/mmBtu.

Peak power costs in the Northwest showed some strength in the new month on
news of a large outage in the eastern reaches of the region, the five-day
uncertainty, and forecasts for colder weather in the near future.
Mid-Columbia peak goods traded from 23.5 to 27$/MWh, a gain of 3.75$/MWh on
the high end and .75$/MWh on the low.  Temperatures across the region ranged
from firmly below freezing to the low 50s on Friday, but the five-day
forecast called for colder weather on both sides of the Cascade Range
through January 1.  The latest six-to-ten predicted Northwest temperatures
to stick just below normal from January 3 to 7.  Forecasted flows at Chief
Joseph remained healthy, but were revised slightly downward to 75 kcfs
Saturday, 60 kcfs Sunday, 90 kcfs Monday, 55 kcfs Tuesday, 95 kcfs Wednesday
and Thursday, and 90 kcfs next Friday.  There was no news of unit outages in
the Pacific Northwest on Friday, but East of the Rockies, in Montana, news
that PPL Montana's Colstrip #4 (740 MW) had tripped off line late Thursday
washed over the WSCC market.  Both the cause and the ETR were kept close to
the chest.

Despite softer gas prices on key pipelines in the West, day-ahead
electricity prices strengthened in the Golden State on Friday, with the
inclusion of the first working day of 2002 in the two-day package boosting
load forecasts.  As two unit outages affected the SP15 grid, heavy load
prices climbed almost 4$/MWh, trading between 26.75 and 30.75$/MWh.  Light
load goods changed hands between 20.5 and 24.5$/MWh.  Spot gas at the
Southern California border settled 9 cents lower on Friday from 2.43 to
2.48$/mmBtu.  In hydro happenings, the DWR reported that data for last week
shows the California snow pack already standing at 55% of expected April 1
levels.  If the current precipitation trends continue the snow pack will be
at 120% of the average, a welcome sign for all those watching generation at
the northern hydros.  In unit news, gas-fired Ormond Beach #1 (725 MW) was
off-line on Friday for planned maintenance, while Alamitos #6 (480 MW) also
tripped, but for unplanned reasons.  The five-day forecast continued to show
little change, as temperatures were expected to remain within 5 degrees of
normal through Tuesday.  Los Angeles forecasts called for highs in the
mid-60s Monday and Tuesday, while mid-state load centers were expected to be
about 10 degrees cooler.  The most current six-to-ten predicted above-normal
temperatures from January 3 to 7.

With cold weather firmly entrenched across the Southwest and forecasts
calling for greater cooling and even snow, peak power at Palo Verde firmed
up about 3.25$/MWh on the high end for the first peak day of the New Year.
Peak goods traded from 26 to 29.25$/MWh on Friday, up from the 25 to 26$/MWh
seen on Thursday.  "Sure it's kind of cold," admitted one seller, "but
unless we get some big unit outages or a gas spike, we're not going to see
much strength in the market any time soon."  There were no unit outages to
report in the Southwest on Friday.  Daytime highs in the north were on the
low side of freezing and expected to stay that way into next year, while
temperatures in the south ranged from the high 30s to mid-60s, and were
forecast to cool off as the New Year approaches.  The latest six-to-ten
called for below-normal temperatures to grip the region from January 3 to 7.

David Ramberg and Jessie Norris
_________________________________________________________

Western Generating Unit Outages

Current                            Begins          Ends          Reason
CAISO units <250/6495 total          NA             NA
planned/unplanned*
Alamitos #3/320/gas               04-Dec-01         ?            planned
Alamitos #4/320/gas               23-Dec-01         ?            planned
Alamitos #6/480/gas               28-Dec-01         ?            unplanned*
Big Creek Project/1020/hydro      09-Dec-01         ?         @752MW,
planned
Colstrip #4/740/coal              27-Dec-01         ?            unplanned*
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 #1/725/gas           28-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 28, 2001 for January 2, 2002

Peak (Heavy) in $/MWh
                 Low     Change   High      Change
Into Cinergy    21.75     3.75    25.00      5.25
Western PJM     24.50     0.75    27.00      3.00
Into Entergy    23.50     2.00    25.00      2.00
Into TVA        19.90     1.40    20.10      0.85
___________________________________________________________
With light demand for New Year's Eve expected to lead into the middle of the
new week and colder temperatures on the horizon, peak power for Monday
delivery edged down across the Eastern Interconnect in lackluster end of the
week trading.  Wednesday goods gained ground as higher load forecasts pushed
early prices up.  "We usually do 1500 MW of PJM dailies at least, but this
short week between the holidays we've been lucky to do 100 MW each day.
There just doesn't seem to be an active market out there," commented one
Mid-Atlantic trader, adding that he was heading home early, a sentiment
echoed by many in the East on Friday.  To the relief of many gas watchers,
NYMEX Henry Hub futures rebounded somewhat on Friday.  February climbed 15.5
cents to close at 2.774$/mmBtu, while March gained 11.6 cents to end at
2.746$/mmBtu.

Colder weather forecasts in the new week were balanced by light load
expectations ahead of the holiday, which sent heavy load electricity prices
down in the Mid-Atlantic on Friday.  "Trading was choppy today.  I'd buy a
piece, and the offer would disappear before I could pick up another,"
commented one PJM dealer.  Western PJM goods for Monday delivery changed
hands between 23.75 and 24$/MWh, while early deals for Wednesday delivery
were heard between 24.5 and 27$/MWh.  Traders thought the market for
Wednesday would probably firm up on Monday.  "Balance for next week looks
promising.  It's all that cold weather," said one market player.  The
Jan/Feb contract saw action between 30.1 and 30.5$/MWh on Friday.  After
jumping to 33$/MWh twice in the early afternoon, LMPs averaged 19.28$/MWh
through 15:00 EST.  Temperatures for the early part of the new week were
expected to be nice and cold, with overnight lows in the 20 to 23 degree
range.  The latest six-to-ten called for below-normal temperatures from
January 3 to 7.

Spot electricity prices traded down for another day in the Midwest on
Friday, despite an anticipated drop in the mercury for the new week.  Into
Cinergy deals for Monday were seen between 18 and 19.75$/MWh, losing another
buck off the low end and almost two off the high.  The Wednesday picture
looked a little better, trading between 21.75 and 25$/MWh.  Strangely the
winter contract also lost ground on Friday, with transactions heard as low
as 24.4$/MWh.  Cold weather was expected to settle over the Midwest with a
vengeance, with highs for Monday and Tuesday expected in the 17 to 25 degree
range and lows in the frigid single digits.  The most current six-to-ten
predicted below-normal temperatures from January 3 to 7.

Amid very slow trading and colder temperatures expected in the new week,
peak power prices were flat to lower in the Southeast on Friday.  Into
Entergy pieces for Monday delivery were bought and sold from 21.5 to
23$/MWh, with the bulk of deals heard around 21.5 to 22$/MWh.  Wednesday
deals were tentatively heard between 23.5 and 25$/MWh.  Into TVA
transactions for New Year's Eve went through from 18.5 to 19.25$/MWh, while
Wednesday saw action slightly higher from 19.9 to 20.1$/MWh.  Overnight lows
were expected in the mid-20s by Monday, with highs in the low-40s.  The
latest six-to-ten called for below-normal temperatures from January 3 to 7.
___________________________________________________________
California ISO Congestion Index in $/MWh

                         Path                 Peak   Off-peak
for 29-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              --       --       --       --       --       --
February       22.00    23.50    26.00    27.00    27.00    28.00
March          19.00    20.50    25.50    26.50    26.50    27.50
April          17.50    19.00    24.00    25.00    25.00    26.00
Q2 '02         17.00    18.50    28.00    29.00    28.00    29.00
Q3 '02         33.50    35.50    44.00    45.00    42.50    43.50
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  27-Dec-01       46.26      45.03      22.00      38.02     17.04



BPA's Offer for 1/03/02.

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
        Feb      2.774         0.155
        Mar      2.746         0.116



Natural Gas Spot Prices in $/mmBtu

                  Low          High
Sumas             2.32         2.37
So. Cal Border    2.43         2.48
San Juan          2.30         2.35
__________________________________________________________

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