FYI.

 -----Original Message-----
From: 	Berryman, Kyle  
Sent:	Thursday, November 15, 2001 9:42 AM
To:	Tawney, Mark
Subject:	'Business as usual' for weather derivatives  - Financial Times; Nov 15, 2001


GLOBAL INVESTING: 'Business as usual' for weather derivatives 
Financial Times; Nov 15, 2001
By ALISON BEARD

When Enron, the energy trading company, became mired in controversy late last month, weather derivatives buyers were in danger of losing one of their top three market makers. But trading has not skipped a beat, according to industry sources.
"So far it's been business as usual," said Tom Stus, a trader at Axia Energy, which also sells risk protection to companies that depend on the weather, such as amusement park operators and ski resort owners.
"At one time Enron was a pretty significant player, but since they've been involved with these problems, they've probably slipped to the top 10 in terms of volume.
"We haven't seen them much in the over-the-counter market," he added. "But they're still online."
Dynegy, the company that plans to acquire Enron, also trades weather derivatives, as do a host of other commodity firms, insurers and some brokerages. Goldman Sachs, the Wall Street bank, and XL Capital, the Bermuda-based insurer, for example, recently entered the market, picking up Enron's slack, Mr Stus said.
"There's been no effect whatsoever," said Ravi Nathan, general manager at Aquila, another energy trader. "This market has a lot of capacity available."
Copyright: The Financial Times Limited 1995-1998



Kyle R. Berryman
Weather Risk Management
Enron Global Markets

Houston Tel 713-853-1704
Houston Fax 713-646-3220