Re-Regulation is Here; Cautious on Group; Much Risk Already in Stocks
*	As anticipated, FERC enacted electricity price controls yesterday
across the United States, west of the Rockies.
*	Controls only affect spot market (approx. 20% of total market), and
are set to expire on September 30, 2002
*	Details of controls suggest effect on earnings may be limited,
but...
*	We think the "skids have been greased" for further controls down the
road, as government regulators seek regulatory solutions to future market
imbalances
*	We are becoming more cautious on group, but maintain positive
ratings at this time given extent of recent pull-back and likely strong
2Q:01 earnings outlook
*	Refer you to our earlier note entitled, "Political Risk Worsens;
Expect FERC Decision Today" where we previewed the FERC decision and provide
further details of our analysis

 <<Re-Regulation is Here. 6-18-01pdf.pdf>>  <<Re-Regulation is Here
6-18-01.doc>>

Raymond C. Niles
Power/Natural Gas Research
Salomon Smith Barney
(212) 816-2807
ray.niles@ssmb.com

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 - Re-Regulation is Here. 6-18-01pdf.pdf 
 - Re-Regulation is Here 6-18-01.doc