FYI. "European Voice" is a Brussels based weekly focussing on EU politics and 
policies.

---------------------- Forwarded by Peter Styles/LON/ECT on 06/15/2001 10:47 
AM ---------------------------


EEMF <EEMF@edelman.com> on 06/15/2001 10:54:30 AM
To: <nailia.dindarova@enron.com>, "  <peter.styles@enron.com>, " (E-mail)" 

Subject: Early Warning Information: EEMF and EME in the press


Energy guru warns against dangers of 'industry squeeze'
ENERGY liberalisation in Europe is vulnerable to political interference in
the wake of the crisis on America's West Coast, according to a leading
industry player.
The warning comes from Jonathan Green, a director at Edison Mission Energy -
one of the companies caught up in the California crisis which has seen
millions of homes left without power as prices surge by up to 50%. "As a
result of California, politicians are much more sensitive now about the
possibility of things going wrong," said Green.
The London-based Edison strategist was speaking to European Voice after a
conference of major pan-European power firms at the European Energy
Millennium Forum in Brussels last week. The companies voiced their concerns
over environmental and other political factors that could squeeze the
industry, leading to the capacity problems seen across the Atlantic. "The
danger will come if there is some sort of constraint on new capacity coming
forward," Green added.
Both fuel price increases and 'stranded costs' - debt carried over from
capital investments under previous regimes - can be passed on to consumers
in the early stages of liberalisation, thereby making the process
politically unpopular.
Industry maintains that environmental pressures contributed to the
California crisis by imposing heavy costs on the building of new plants.
"Equally in Europe you can see pressures for older plants to close down
because of emissions," said Green.
Euro-MPs are currently in conciliation talks with EU governments over new
emissions limits for large power plants that could force older generators to
shut down for part of the year. Negotiations resume next week.


EEMF Team
eemf@edelman.com
Tel: +32 2 227 61 83