Introduction of the European Gas Advisory Service and European Power Advisory Service

To: European Gas and Power Clients
From: Peter Hughes, CERA Senior Director; Scott Foster, CERA Director; Simon
Blakey, CERA Director; Mack Brothers, CERA Director
Date: 14 March 2000

Re: Introduction of the European Gas Advisory Service and European Power
Advisory Service

For the past 15 years, CERA's European Gas and Power Retainer Advisory
Service has been primarily a natural gas service, with a small component
related to electric power issues. In recognition of the changing industry
and regulatory environment for electric power, we have significantly added
to our electric power capabilities in Europe over the past three years, in
terms of both staff and of the depth and breadth of our research. Based on
strong client demand for a dedicated team and service focused on the
impending sea change for the power industry and our desire not to lessen the
service we provide to the natural gas industry and market in Europe, CERA is
pleased to announce the launch of the European Power Advisory Service as of
1 April 2000. This new service, in combination with our existing European
Gas Advisory Service, will maintain CERA's thought leadership and provide
clients with an "early warning" system in these fast changing and important
markets.

The two teams will continue to work closely together, which will allow them
to identify and analyze the important aspects of "convergence" between the
gas and electric power markets while highlighting and researching the
independent issues in each market.

European Gas Advisory Service

The European Gas Advisory Service will continue to provide clients with
independent analysis and insight on the changing dynamics of the European
gas market. It offers decision makers clear and comprehensive analysis on
the future energy landscape and the challenges posed by the emerging
competitive environment in Europe. The focus is on market fundamentals, the
impact of European Union and national policies, the changing industry
structure, and strategic responses.

The deliverables include:

The semi-annual European Gas Watch
European Gas Decision Briefs
European Gas Private Reports
European Gas Energy Signposts
Interactive media conference calls
Dedicated European Gas website-highlighting CERA's current thinking and
market fundamentals on the gas sector in Europe on a country-by-country
basis.
Attendance at European Gas Roundtables (Optional)

European Power Advisory Service

The European Power Advisory Service will provide clients with independent
analysis and insight on the changing dynamics of the European power market.
The service will review the market fundamentals for the European electricity
market and will provide clients with a framework for understanding and
interpreting the major changes taking place in the market. European Power
Advisory Service will present CERA's view of the dynamics and assessment of
the opportunities being created in the market.

The deliverables will include:

A semi-annual European Power Watch
European Power Decision Briefs
European Power Private Reports
European Power Energy Signposts
Interactive media conference calls
Dedicated European Power website-highlighting CERA's current thinking and
market fundamentals on the power sector in Europe on a country-by-country
basis.
Attendance at European Power Roundtable (Optional)

We are pleased at this opportunity to enhance CERA's coverage of a rapidly
changing market and look forward to providing you with deeper and broader
perspectives on the future of European energy.

If you have any questions regarding this exciting transition, please contact
Mack Brothers* in our Paris office at +33 (0) 1 42 44 10 10. Also please
note the upcoming European Gas and European Power Roundtable sessions
scheduled for Monday 5 June 2000 in Paris. These roundtables commence at 9
a.m. and include dinner that evening.

* CERA is pleased to announce that as of 1 April 2000 Mack Brothers will be
moving from our Cambridge office to our Paris office to head the Commercial
team for European Energy.

**end**

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