Dynegy Says First-Quarter Profit Higher Than Expected (Update4)
Bloomberg, 04/02/01

Enron Italia Chief Says It Won't Buy Extra Enel Capacity
Dow Jones Energy Service, 04/02/01

USA: Enron and Saks ink energy management deal.
Reuters English News Service, 04/02/01

Kiodex To Provide Risk-Management System For EnronOnline
Dow Jones Energy Service, 04/02/01

Kiodex, Inc. To Market Risk Workbench Via EnronOnline
Business Wire, 04/02/01

Enron In Private Energy Supply Pact With Saks >ENE SKS
Dow Jones News Service, 04/02/01

Maverick of the Morning
CNNfn: Market Coverage - Morning, 04/02/01

Exxon Mobil Replaces General Motors Atop Fortune 500 (Update1)
Bloomberg, 04/02/01

Arizona Lacks Natural Gas Pipeline Capacity, Paper Reports
Bloomberg, 04/02/01




Dynegy Says First-Quarter Profit Higher Than Expected (Update4)
2001-04-02 16:15 (New York)

Dynegy Says First-Quarter Profit Higher Than Expected (Update4)

     (Updates with closing share price. For more on the California
electricity crisis, see {EXTRA <GO>}.)

     Houston, April 2 (Bloomberg) -- Dynegy Inc., a U.S.
electricity and natural-gas trader, said first-quarter per-share
profit was higher than expected on trading gains, boosted by
``strong'' gas and power demand. The company also raised its 2001
earnings forecast.
     First-quarter profit rose to 40 cents a share from 26 cents a
year earlier, the company said in a statement. It was expected to
earn 31 cents, the average estimate of analysts polled by First
Call/Thomson Financial. The company expects to make $1.92 to $1.97
in 2001, up from its previous forecast of $1.80 to $1.87, the
statement said.
     The Houston-based company runs several power plants in
California. The state has been hit by a 10-month electricity
shortage, and the average power price there rose nine-fold last
quarter from a year earlier. Colder-than-usual weather in other
parts of the U.S. helped earnings, analysts said.
     ``It's been the same thing throughout the industry -- they've
had good margins in most of country,'' said William Hyler, an
analyst at CIBC World Markets. He rates Dynegy a ``strong buy.''
     Dynegy owns Illinois Power, a utility with 650,000 gas and
power customers in southern Illinois. Dynegy's fourth-quarter
profit more than doubled, driven by power sales in the Midwest and
Northeast.
     The company also owns, manages or is building or acquiring
power plants in Texas, Arkansas, Kentucky, Georgia, North
Carolina, Louisiana, Nevada, Washington and New York. Its plants
currently generate about 13,500 megawatts of capacity, or enough
to light 13.5 million homes.
     ``I think their geographical reach has been a tremendous
asset for them,'' said Merrill Lynch analyst Donato Eassey, who
rates Dynegy ``near-term accumulate.''

                           Dynegydirect

     The company also said it has had $9 billion in transactions
on its online trading site, Dynegydirect, since its start in
November. The site had $3 billion in transactions last year.
     Shares of Dynegy rose 89 cents to $51.90. They have risen 65
percent in the past year.
     Dynegy will announce first-quarter earnings on April 17. The
company is expected to earn $1.84 a share in 2001, according to
First Call.
     Other energy traders have said in the past three weeks
they'll make more money than expected in the first quarter because
of gains in business in the U.S. West. They include San Jose,
California-based Calpine Corp., an electricity generator and power-
plant developer; Spokane, Washington-based Avista Corp., owner of
utilities in the U.S. Northwest; and Atlanta-based Mirant Corp.,
the energy-trading arm of Southern Co.
     In January, Houston-based Enron Corp., the biggest energy
trader, raised its 2001 profit forecast, partly because of trading
in North America.
     Dynegy was one of 26 energy suppliers to California accused
in a March 22 report by that state's Independent System Operator,
which controls 75 percent of California's power grid, of
overcharging the state for power. The generators say their prices
were fair based on market conditions.
     Earlier last month, Dynegy and Minneapolis-based NRG Energy
Inc., co-owners of four California power plants, agreed to sell
the state enough electricity to light as many as 2.3 million homes
through 2004.
     Chevron Corp., the No. 2 U.S. oil company, owns 29 percent of
Dynegy.


Enron Italia Chief Says It Won't Buy Extra Enel Capacity

04/02/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

VENICE, Italy -(Dow Jones)- Enron Corp. (ENE) will stay out of the auctions 
for Italian power company Enel SpA's generating capacity, despite recent 
developments that should bring the price of the assets down, Enron Italia 
chief Riccardo Bortolotti told a conference Friday. 
"We're very interested in doing risk management or power purchasing 
agreements, or capacity and tolling agreements," but not in actual ownership 
of the physical assets, Bortolotti told Dow Jones Newswires on the sidelines 
of the conference.
Enel was recently ordered to sell an additional 5,500 megawatts of plant in 
order to gain regulatory approval for its purchase of telecoms company 
Infostrada. This is in addition to long-standing plans for a three-tranche 
sale of 15,000 MW of installed capacity. The extra supply is expected to 
reduce the realized price of the assets considerably. 
Staying out of the auctions will restrict Enron's near-term options in 
operating in Italy, which has the highest electricity prices in Europe. 
Import capacity is scarce and planning permission for greenfield projects is 
still slow, despite promises by the government to simplify the procedure. 
Earlier, the head of the Italian arm of Germany's E.On AG (EON), Luca Alippi, 
refused to rule out participation in the auctions. Originally, E.On had 
decided not to bid. 
Separately, Bortolotti called on Italian regulatory authorities to change 
legislation that allows power consumers the freedom to cancel supply 
contracts at six months' notice. He noted that in such an environment, it 
will be difficult for independent power producers to secure financing for new 
projects. 
"You can't finance a project on trust," Bortolotti told Dow Jones Newswires. 
He explained that whereas this measure was necessary at the start of 
deregulation in order to allow customers to get out of disadvantageous 
contracts, now it is working against the interests of consumers. 
"If we can't sign (power purchasing agreement) contracts, then in the long 
term, they won't be able to find a counterparty" to compete with incumbent 
suppliers, he said. 
-By Geoffrey T. Smith, Dow Jones Newswires; +44 7771 513 797; 
geoffrey.smith@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


USA: Enron and Saks ink energy management deal.

04/02/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, April 2 (Reuters) - Enron Corp. , North America's largest buyer and 
seller of electricity and natural gas, said Monday its energy services unit 
signed a long-term energy management agreement for all of upscale retailer 
Saks Inc.'s facilities. 
"By outsourcing the management of its electricity and natural gas supply to 
Enron, Saks is significantly protected from energy price uncertainty and 
volatility, particularly in California and New York," said David Delainey, 
chairman and chief executive of Enron Energy Services.
Financial terms were not disclosed. 
Under the agreement, Enron Energy Services will supply all of Saks' store 
locations, which total over 300, its distribution facilities, and 
administrative offices with electricity and natural gas. 
The companies are also working to identify ways to save Saks money through 
energy efficiency. 
Although no time frame was given, a spokeswoman for Enron said that contracts 
typically run between 5 and 10 years. 
To date, Enron Energy Services manages energy at more than 28,500 customer 
sites. 
In an effort to cut energy costs and boost profits, a host of companies, 
which include drug maker Eli Lilli and Co. , the North American arm of 
British glassmaker Pilkington Plc , one of the world's largest glass and 
plastics makers Owens-Illinois , and cereal and sports beverages maker Quaker 
Oats Co. , have recently handed their energy management over to Enron. 
Shares of Enron were up 45 cents at $58.55 while shares of Saks were up 25 
cents to $13.25 in midmorning trade on the New York Stock Exchange.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Kiodex To Provide Risk-Management System For EnronOnline

04/02/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- Kiodex Inc. said it signed a deal with EnronOnline to 
market its risk-management software on Enron Corp.'s (ENE) proprietary 
Internet exchange for energy products. 
Financial terms of the agreement weren't disclosed, company executives said 
Monday.
The deal allows Kiodex to position itself this year in a second key online 
marketplace for energy products. It also will provide the risk-management 
technology on eNymex when the New York Mercantile Exchange launches its 
electronic platform sometime in the second quarter. 
The EnronOnline deal gives Kiodex significant exposure in the energy sector. 
More than 1,200 companies trade with Enron on the proprietary exchange. 
"Those 1,200 companies are crude, gas or refined products, so we were 
specifically targeting them," said Raj Mahajan, Kiodex president. "There's no 
better way to reach that market than through EOL." 
Since Enron launched EnronOnline in November 1999, it has been a principal in 
more than 800,000 trades valued in excess of $485 billion. More than 1,600 
products are traded daily on the Web-based exchange, including energy, 
metals, bandwidth, pulp and paper, weather derivatives and plastics. 
Kiodex plans to expand its risk-management services from energy trading and 
other commodities markets to foreign exchange and fixed income. 
"Our strategy is to be the risk hub, to gather into the Risk Workbench all 
trades done, whether they're over-the-counter or on an exchange," said Kiodex 
Chief Executive R. Martin Chavez. 
The Kiodex Risk Workbench will be available through EnronOnline in the second 
half of 2001. Trades executed on EnronOnline can be automatically fed into 
the Kiodex system for analysis, eliminating repetitious data entry. 
The software lets traders calculate a basic set of risk-management reports 
for all their EnronOnline transactions in crude oil, refined products and 
natural gas. Additional Kiodex risk-management services will be available on 
a subscriber basis. 
Kiodex provides pricing tools, market data and financial reports to assist 
companies in managing their exposure to market volatility. 
-By Stephen Parker, Dow Jones Newswires; 201-938-4426; 
stephen.parker@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Kiodex, Inc. To Market Risk Workbench Via EnronOnline

04/02/2001
Business Wire
(Copyright (c) 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--April 2, 2001--Kiodex, Inc., a provider of 
web-based risk management and trading systems, today announced the signing of 
a definitive agreement to market the Kiodex Risk Workbench(SM) in conjunction 
with EnronOnline. 
Under the terms of the agreement, EnronOnline customers will be able to 
calculate a basic set of risk management reports for all of their EnronOnline 
transactions in natural gas, crude oil and refined petroleum products. The 
reports will be generated by Kiodex's flagship software application, the 
Kiodex Risk Workbench(SM), and provided at no cost to the EnronOnline user. 
Customers requiring additional functionality from the Kiodex Risk 
Workbench(SM) will be able to access its features directly through a paid 
subscription to Kiodex.
Accessed via the internet, the Kiodex Risk Workbench(SM) is a risk-management 
system that provides pricing tools, market data, and financial reports to 
assist corporations in managing their exposure to market volatility and in 
complying with Financial Accounting Standards Board(FASB) Statement 133. 
Reports generated by the Kiodex Risk Workbench(SM) will be available through 
EnronOnline in the second half of 2001. Trades executed on EnronOnline can be 
automatically fed into the Kiodex Risk Workbench(SM) for analysis, 
eliminating the need for manual deal entry. 
"Kiodex and Enron share the goal of bringing market-leading risk management, 
transparency, and liquidity to existing and developing commodities markets," 
stated R. Martin Chavez, Kiodex CEO. "The placement of our risk services on 
EnronOnline, the world's most successful B2B marketplace, brings simple and 
cost-effective straight-through processing and best risk practices to 
thousands of corporations worldwide." 
Since its launch in November of 1999, EnronOnline has been a principal in 
over 800,000 transactions valued in excess of $485 billion. Over 1,600 
products are traded daily on EnronOnline in markets such as natural gas, 
crude oil, refined petroleum products, metals, electricity, bandwidth, coal, 
pulp and paper, weather derivatives and plastics. 
"Enron looks forward to providing EnronOnline customers access to Kiodex's 
Risk Workbench(SM)," said Andy Zipper, vice president for EnronOnline. 
"Providing liquidity, price transparency and risk management in commodity 
markets is the hallmark of EnronOnline and this agreement furthers that 
goal." 

About Kiodex, Inc. 

Kiodex, Inc. is a technology and services company that provides risk 
management and trading expertise to all commodity market participants through 
easily accessible web-based products. Kiodex's cost-effective and 
sophisticated risk management tools enable traders, managers, and corporate 
officers to easily and accurately understand, quantify and manage their 
risks. 
The company's flagship product, the Kiodex Risk Workbench(SM), is integrated 
into the world's leading commodity transaction platforms, increasing the 
transparency of those markets by making risk management tools easily 
accessible. In September of 2000, Kiodex was selected from over 50 competing 
vendors to develop the order-matching engine for the New York Mercantile 
Exchange's new electronic trading platform, enymex(SM). For more information, 
please visit www.kiodex.com.


CONTACT: Kiodex, Inc. Greg Henderson, 646/437-3815 greg.henderson@kiodex.com 
URL: www.kiodex.com 
10:31 EDT APRIL 2, 2001 

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 

Enron In Private Energy Supply Pact With Saks >ENE SKS

04/02/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Enron Corp.'s (ENE) Enron Energy Services unit agreed 
to manage the supply of electricity and natural gas to all of Saks Inc.'s 
(SKS) store locations, distribution facilities, and administrative offices in 
39 states. 
Financial terms of the "long-term" contract weren't disclosed.
In a press release Monday, the companies said they are also working together 
to identify energy efficiency projects that will provide additional economic 
value to Saks. 
Saks added that by outsourcing the management of its electricity and natural 
gas supply to Enron, it is "significantly protected from energy price 
uncertainty and volatility, particularly in California and New York." 
Enron's Web site is http://www.enron.com.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 



Business
Maverick of the Morning
Rhonda Schaffler, Brett Gallagher

04/02/2001
CNNfn: Market Coverage - Morning
(c) Copyright Federal Document Clearing House. All Rights Reserved.

RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: Surging energy prices helped 
ExxonMobil (URL: http://www.exxon.mobil.com/) top the annual "Fortune 500" 
list of the largest American companies. Exxon moved up two places, from 
number three last year to number one this time around. Other energy companies 
fared well in 2000 also. Enron (URL: http://.www.enron.com/) jumped from 18, 
to seven, and Duke Energy (URL: http://www.duke-energy.com/) shot up to 17th, 
from 69th. 
But while the latest energy crisis may be good for businesses, it is not good 
for consumers. Energy Secretary Spencer Abraham recently characterized the 
current shortage as the most serious in 30 years. Gas prices, electricity and 
home heating prices are all on the rise. And consumers are desperately 
looking for some ways to save money. KeySpan (URL: 
http://www.keyspanenergy.com/) is hoping its on-line site will help consumers 
do just that. Myhomekey.com is offering homeowners and renters an on-line 
service to help reduce their energy costs. Robert Catell is chairman and CEO 
of KeySpan.
Bob, thanks for joining us. 
ROBERT CATELL, CHMN. & CEO, KEYSPAN: Good morning, nice to be here this 
morning. 
SCHAFFLER: This certainly was timely of you to come up with this on-line 
expertise, I guess we should call it. 
CATELL: Well, energy and energy costs, it`s on everybody`s minds these days. 
And Myhomekey.com can help people reduce their energy costs. 
SCHAFFLER: OK, so how does this work? 
CATELL: Well, it`s a very simple system. It`s - KeySpan, which is a large 
energy company here in the Northeast, has developed Myhomekey.com, which is 
an Internet-based home energy management business. And people, by inputting 
information on their home, can learn about their energy usage, and more 
important, they can learn how to reduce their energy usage. 
BRETT GALLAGHER, GUEST HOST, MARKET CALL: Bob, how - in the day of Internet 
models where people often joke that it`s a great idea but how do you make any 
money on it? I guess the question is how will KeySpan make money on this? or 
is it just a service? 
CATELL: Well, KeySpan has a representation for providing services to our 
customers. And as part of our strategy, we have an Internet-based strategy, 
Myhomekey.com is one part of that strategy. And by offering products and 
services to customers through KeySpan, we can sell those products and 
services, have our customers have easier access to the company and to these 
important products and services. 
SCHAFFLER: What is the one obvious way to save energy that people might 
overlook, that they find out by going to the site? 
CATELL: Well, one of the easiest things people can do is kind of lower their 
thermostats in the winter time, or shut off their air-conditioners in the 
summer time. But by going to the site, they can find out the energy uses of 
all of their appliances, can look for more efficient appliances, and can even 
schedule to purchase, and the installation of that appliance right on the 
site. 
GALLAGHER: What sort of range and prices do these products and services 
encompass? are they cheap fixes? or are we talking about full reinstallations 
of furnaces? 
CATELL: Well, it varies, actually, the site itself is free. The customer can 
go in there and sign on. And if they`re registered, they can go right into 
the site, or register, it doesn`t cost them anything. But the services that 
they can get on the site go from converting their house from oil to gas, 
which is something of interest to KeySpan, or buying a refrigerator, buying 
an air-conditioning unit. So it really varies. 
SCHAFFLER: You know, when we`ve got an energy crisis, it benefits energy 
companies. But how concerned over all are you about the big picture out there 
as far as what`s going on in California and oil prices? 
CATELL: Well, KeySpan being a very large energy company here in the Northeast 
is obviously concerned about the overall picture. We want to be sure that 
customers have enough energy. We also want to be sure that customers use 
energy efficiently, they conserve so that we obviously have enough energy to 
maintain our quality of life, and to develop businesses here in the area. 
SCHAFFLER: Robert Catell of KeySpan, thanks so much for joining us, 
appreciate it. 
CATELL: Thank you, a pleasure 

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Exxon Mobil Replaces General Motors Atop Fortune 500 (Update1)
2001-04-01 21:40 (New York)


     (Adds that citation is from Fortune.com Web site)

     New York, April 1 (Bloomberg) -- Exxon Mobil Corp. topped the
new Fortune 500 ranking of the biggest U.S. companies, replacing
General Motors Corp., as higher oil prices contributed to $210.4
billion in revenue last year.
     GM fell to third, behind Wal-Mart Stores Inc., Fortune said
on its Fortune.com Web site. In the list's 55-year history, only
GM and Exxon have been No. 1. Energy companies fared well this
year, with Enron Corp. moving to No. 7 from 18th and Duke Energy
Corp. going to No. 17 from 69.
     Wal-Mart had $193.3 billion in revenue, about $8.7 billion
more than GM, Fortune said. The retailer employs 1.2 million
people, more than any other company on the list. Ford Motor Co.
was fourth and General Electric Co. fifth.
     Rounding out the top 10 were financial services provider
Citigroup Inc., computer maker International Business Machines
Corp. and telecommunications companies AT&T Corp. and Verizon
Communications Inc.
     The high oil and natural-gas prices that helped energy
companies hurt other industries, Fortune said. Five of the top 15
made less money than in 1999, and profits rose 8.4 percent, less
than previous year's 29 percent increase, Fortune said.
     California and New York led all states among the listed
companies with 55 headquarters each. Texas is home to 45 companies
on the list, while Illinois has 39 and Ohio has 20. Forty of the
companies are based in New York City, twice as many as in Houston,
the No. 2 city.

(Fortune.com 4-1)

See {FRTN <GO>} for Fortune's Web site.


Arizona Lacks Natural Gas Pipeline Capacity, Paper Reports
2001-04-02 14:29 (New York)


     Phoenix, Arizona, April 2 (Bloomberg) -- Arizona is facing a
capacity shortage in the pipelines that deliver natural gas to
electricity generators, fueling concern about high prices and
power shortages this summer, the Arizona Republic reported.
     El Paso Corp.'s El Paso Natural Gas Co. and Enron Corp.'s
Transwestern Pipeline, which deliver the bulk of the state's
natural gas, said they had plenty of capacity a year ago though
are now running full, the paper said. The state, which has no
developed wells, relies on pipelines to bring in natural gas from
Colorado, New Mexico and Texas, the paper said.
     The companies attribute growing demand for gas to colder
weather and a growing reliance on natural gas to generate
electricity, the paper said. There are 20 new power plants
proposed for the state and all will be fired by natural gas, the
paper said.
     Arizona will need more than 3 billion cubic feet of
additional capacity to build all the plants and another
3.5 billion to supply plants proposed for California, which draws
its natural gas from the same pipelines as Arizona, the paper
said. That would require doubling the present pipelines running
through Arizona, the paper said.

(Arizona Republic 4-2)

For the Web site of the Arizona Republic, see {AZNA <GO>}.