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Enerfax Daily
NORTH AMERICA'S FREE POWER AND GAS INFORMATION SOURCE=20
Monday, February 4 2002 No. 926
Visit: http://www.enerfax.com to view our web version or for Oil Prices & =
News http://www.enerfaxgold.com=20

PHYSICAL NATURAL GAS PRICES =20
Gulf/Eastern Region =20
| Agua Dulce | 2.06 |
| ANR SE | 2.15 |
| Carthage TG | 2.13 |
| Chicago Citygate | 2.20 |
| Columbia Gulf Onshore | 2.17 |
| Dominion South Point | 2.37 |
| Henry Hub | 2.19 |
| Houston Ship Channel | 2.18 |
| Katy Hub | 2.13 |
| NGPL LA Pool | 2.14 |
| NGPL - Midcontinent | 2.07 |
| NGPL STX | 2.10 |
| NGPL TX/OK | 2.12 |
| NNG Demarc. | 2.16 |
| Niagara | 2.36 |
| Sonat Tier 1 | 2.16 |
| TCO IPP Pool | 2.27 |
| Tetco ELa | 2.16 |
| Tetco M-3 | 2.48 |
| Tetco STX | 2.08 |
| TGP Zone 0 | 2.11 |
| TGP Zone 1 (500 Leg) | 2.15 |
| TGT Zone SL | 2.17 |
| New York Citygate | 2.56 |
| Transco Station 65 | 2.22 |
| Transco Zone 6 (NY) | 2.56 |
| Trunk ELa | 2.15 |
| Western Region =20
| California Border | 2.17 |
| El Paso Keystone | 2.05 |
| El Paso San Juan-Blanco | 2.05 |
| Waha Hub | 2.10 |
| Canadian/Rockies Region=20
| Nova/Aeco (C$/gig) | 2.99 |
| Dawn Hub/Union | 2.30 |
| Northwest Stanfield | 2.04 |
| Wyoming Pool | 1.91 |
| Opal | 1.91 |
| PGT-Malin | 2.10 |
| Sumas | 2.00 |
Flow Dates 02/2-4
-------------------------------------------------------------
NATURAL GAS FUTURES
Henry Hub=20
12 Month Strip 2.5156 -0.0023 =20
18 Month Strip 2.6121 -0.0052 =20
| Month | High | Low | Close | Change |
| MAR | 2.175 | 2.100 | 2.138 | +0.000 |
| APR | 2.220 | 2.160 | 2.198 | +0.008 |
| MAY | 2.280 | 2.240 | 2.266 | +0.008 |
| JUN | 2.350 | 2.310 | 2.331 | +0.005 |
| JUL | 2.410 | 2.385 | 2.391 | +0.000 |
| AUG | 2.465 | 2.425 | 2.446 | -0.002 |
| SEP | 2.470 | 2.430 | 2.446 | -0.002 |
| OCT | 2.480 | 2.440 | 2.470 | -0.002 |
| NOV | 2.710 | 2.650 | 2.695 | -0.004 |
| DEC | 2.920 | 2.880 | 2.894 | -0.010 |
| JAN | 3.020 | 2.480 | 2.981 | -0.013 |
| FEB | 2.960 | 2.480 | 2.931 | -0.016 |
-------------------------------------------------------------

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Natural Gas Futures End Friday Flat

Natural gas futures for March delivery on the NYMEX ended another boring s=
ession flat for the day last Friday at $2.138 per MMBtu. The April contract=
gained $0.008 to $2.198 per MMBtu. The market opened lower, but was soon b=
oosted by short-term cold and short-covering from speculators and locals pu=
shing as high as $2.165 per MMBtu. Buy-stops were believed to be above $2.1=
7 per MMBtu, and will still likely be there today. Estimated volume Friday =
was only about 50,400 contracts, with 19,600 of those spreads. There just w=
as not enough volume to hit the buy-stops as the market hovered mostly betw=
een $2.14 $2.15. With the market unable to breach $2.17, speculators were =
forced to back-off late. If $2.17 can be breached today, the market could r=
ise to the next resistance level at $2.22, and then possibly as high as $2.=
48 before reality once again sinks in. However, if the cash market opens lo=
wer this morning, the market may not get a chance to test the resistance. W=
ith still ! more than 1 Tcf in excess storage over last year and a relative=
ly mild winter so far, the markets short to medium term bias is still down.=
Natural gas for weekend delivery across the US and Canada was generally fl=
at to $0.10 higher Friday. Natural gas for weekend delivery at the Henry hu=
b gained $0.05 to $2.19 per MMBu.
-------------------------------------------------------------
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-------------------------------------------------------------
Today's Power Bulletins
* Office of Public Utility Council Suing Texas Public Utility Commission Ov=
er Rates Default Provider Can Charge in Western Service Territory for TXU C=
orporation
* PG?Sends Bankruptcy Details to Judge
* AmerenEnergys Trading and Marketing President James Whitesides Resigns
* Niagara Mohawk Continues Western New York Storm Restoration Efforts
* Midwest ISO Implements Next Phase of Commercial Operations Plan
* Sempra Energy Honored in Mexico City for Developing Cross-Border Infrastr=
ucture
* Plug Power CEO to Speak at Salomon Smith Barney Distributed Generation an=
d Power Technology Conference Tomorrow in New York
* Nuclear Energy Institute Says Nuclear Power Plants Set Reliability and Ou=
tput Records in 2001
* Court Tells VP Cheney to Explain Energy Task Force Secrecy=20
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-------------------------------------------------------------

Enron Power Trading Falls in 4th Quarter

Enrons 4th quarter power trading volumes were about 26% lower than the prev=
ious quarter, which is surprising since it was bankrupt for a third of the =
quarter and in deep trouble for over half of the period. Enron Power Market=
ing sold almost 221 million MW from October through December, down from abo=
ut 300 million MW sold during the 3rd quarter. Last week, the FERC began in=
vestigating allegations that Enron unfairly raised wholesale power prices d=
uring California's power crisis last year. After Enron took a $1.2 billion =
write-down in shareholder equity related to its off-balance-sheet transacti=
ons, other energy firms limited their trading with Enron out of concern cre=
dit obligations. In the first 3 quarters of 2001, Enron had about 15% of th=
e nations wholesale power market and AEP was next in line with about an 8% =
share. The table below shows Enron's biggest customers, the total MW sold a=
nd the highest price paid by each for the 4th quarter.=20

ENRONS TOP 10 CUSTOMERS - 4th-QUARTER 2001=20

Total MW High Price ($ per MW)=20
American Electric Power 17,942,497 317=20
Williams Energy 16,604,339 353=20
Aquila Energy 15,321,220 205=20
Duke Energy 14,635,810 335=20
New York ISO 13,401,592 134=20
Dynegy 12,923,756 205=20
Reliant Energy 10,759,800 180=20
Mirant Energy Marketing 10,702,749 305=20
El Paso Merchant Energy 8,413,494 385=20
PG?Energy Trading 6,885,501 160=20
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-------------------------------------------------------------
Natural Gas NYMEX Volume
02MAR 31,239
02APR 11,175
02MAY 4,559
02JUN 3,411
02JLY 2,139
02AUG 5,355
02SEP 2,694
02OCT 1,932
02NOV 1,166
02DEC 912
03JAN 1,188
03FEB 1,473
03MAR 2,151
03APR 1,839
03MAY 482
03JUN 1,329
03JLY 150
03AUG 103
03SEP 132
03OCT 413
03NOV 379
03DEC 506
04JAN 269
04FEB 163
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--------------------------------------------------------------

Mirant Moving to Allay Investor Fears

In an attempt to allay the fears of investors, Mirant plans to sell assets =
and reduce expenditures to lower its debt. Shares of Mirant have fallen by =
50% in the last 2 months, following the downfall of Enron and the downgrade=
of about $4.9 billion of its debt to junk status by Moodys. Last week, Mir=
ant said that 4th quarter earnings had dropped by 55%, due to lower energy =
prices and a charge of $66 million from exposure to Enron. It also cut its =
capital budget by 50% and lowered its earnings forecast in 2002 to $1.60 to=
$1.70 per share, from its December estimate of $1.90 to $2.00, because of=
lower profit margins. Mirant expects 1st quarter profits of $0.30 per shar=
e, lower than last years $0.52 per share. Profit for the 4th quarter dipped=
to $30 million, or $0.09 per share, from $67 million, or $0.20 per share a=
year ago. Revenue was off 9%, to $7.24 billion from $7.96 billion. Mirant =
was spun off from Southern Company in September 2000 and the deal was compl=
eted last ! April, when Southern distributed 272 million shares, or 80% of =
Mirant for $9.44 billion. In efforts to distance itself from Enron, Mirant =
points out that assets, such as power plants, contributed 90% to its profit=
ability, unlike Enron, whose trading unit was responsible for 90% of its 20=
00 revenue. Mirant has delayed plans to spend $3 billion on tripling its 15=
,000 MW of power this year. Instead it will limit capital spending to the c=
ompletion of power plants that will produce 5,700 MW. Mirant will also cut =
about 65% of job at its German unit, Bewag, which it wants to sell.
-------------------------------------------------------------

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-------------------------------------------------------------
PHYSICAL POWER PRICES
| | High | Low | Average |
| | $/MWh | $/MWh | $/MWh |
| Cinergy | 21.00 | 19.00 | 19.40 |
| ECAR | 22.25 | 16.50 | 20.25 |
| ERCOT | 21.00 | 18.50 | 19.10 |
| Entergy | 19.00 | 17.00 | 18.35 |
| TVA | 23.00 | 20.15 | 22.55 |
| ComEd | 20.25 | 19.75 | 20.10 |
| Nepool | 29.50 | 29.25 | 29.30 |
| PJM West | 22.75 | 21.75 | 22.00 |
| Main | 20.25 | 18.00 | 19.55 |
| MAPP | 21.25 | 19.00 | 20.40 |
| Palo Verde | 26.50 | 23.50 | 24.95 |
| Mid C | 21.00 | 19.00 | 19.60 |
| COB | 24.00 | 22.00 | 22.60 |
| 4 Corners | 24.25 | 23.25 | 23.90 |
| Mead | 25.75 | 24.00 | 24.95 |
| NP 15 | 27.00 | 24.00 | 24.80 |
| SP 15 | 27.50 | 24.00 | 25.35 |
-------------------------------------------------------------

Baker Hughes Weekly Rig Count

The number of rigs searching for oil and natural gas in the US fell by 6 to=
853 last week, according to Baker Hughes. The total was down from 1,138 a =
year ago. The number searching in Canada was down 7 to 452, compared to 579=
a ago. The number of rigs in the Gulf of Mexico was down 3 to 114, compare=
d to 159 a year ago. In the US, the number searching on land was 714, and t=
he number offshore was 121. Eighteen were operating in inland waters. The t=
otal North American rig count fell by 13 to 1,305, down from 1,717 a year a=
go.=20
-------------------------------------------------------------

OPEN SEASON
SG Resources Mississippi, L.L.C., a wholly owned subsidiary of SGR Holdings=
, L.L.C., is conducting an open season for firm storage services at its new=
high-deliverability, salt cavern, natural gas storage facility, known as t=
he Southern Pines Energy Center. The open season will begin at 9:00 a.m. CD=
T on February 4, 2002, and will continue until 5:00 p.m. CDT on March 4, 20=
02. The project is located at the border of Mississippi and Alabama with ac=
cess to the major pipelines serving the Mid-Atlantic and the Southeastern U=
nited States. The facility is ideally located to serve as a transportation =
and storage hub for shippers on any one of nine major pipelines that will b=
e interconnected directly or indirectly to the project. Information on the =
facility and the Open Season is available on our web site at http:=
//www.sgr-holdings.com =20
or contact us at 713-914-8188.
-------------------------------------------------------------

Todays Gas Bulletins
* S?May Cut Williams Credit Rating
* Ex-Enron CEO Ken Lay Breaks Silence with Testimony in Front of Congressio=
nal Hearing Today; Former CEO Jeff Skilling and Former CFO Andrew Fastow to=
Testify Thursday in Front of House Energy and Commerce Committee.
* President Bush Touts Pension Reform Without Mentioning Enron
* Transco to Pay $1.4 Million Fine and Clean Up Soil and Groundwater Contam=
ination=20
* Andersens British Clients Seek Further Assurances Company Still Viable
* Justice Department Tells White House Not to Destroy Enron Papers
* House of Representatives Democrat Waxman Wants to Interview Army Secretar=
y Thomas White This Week About Role as Former Senior Executive at Enron
* NiSource Credit Rating Cut to Lowest Investment Grade Above Junk
* Williams Companies and Williams Communications and Officers and Directors=
=20
Sued on Behalf of Investors
------------------------------------------------------------

Ziff Energy Group presents
Gas Storage 2002
Redefining the Fundamentals:
Is Gas Still in the Storage Game?
Power Drives Storage
Will the recession affect plant and storage development?
Will record high volumes in storage further depress gas prices?
Is it possible to mitigate storage risk while dealing with year-round price
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-------------------------------------------------------------
Midwest ISO Begins Selling Regional Transmission Service =20

The Midwest Independent Transmission System Operator has implemented its ta=
riff and will now provide regional transmission service for bulk power in t=
he Midwest ISO footprint. Transmission customers are now able to request tr=
ansmission service from Midwest ISO without going to individual transmissio=
n owners. The Midwest ISO, which serves 21 transmission owners in 15 states=
, is responsible for evaluating and coordinating requests for access to the=
regional power grid on a non-discriminatory basis. The Midwest ISO says th=
at transmission customers in the Midwest will now benefit from standardized=
rates, terms and conditions for service over its 86,000 miles of transmiss=
ion lines. Transmission customers are now able to request transmission serv=
ice from the MISO's OASIS website, giving them the ability to view transmis=
sion availability data at the same time and request transmission service in=
the same manner. It also provides for streamlined electronic scheduling wh=
ich allows! customers to easily schedule approved transactions for service =
across multiple control areas in the MISO footprint. In addition, customers=
will now have access to an independent, regional analysis of bulk power fl=
ows utilizing a standard methodology. The MISO will provide a single bill t=
o customers for all transmission service provided.=20
-------------------------------------------------------------
R. W. Beck is an engineering and management consulting firm serving utiliti=
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help our clients face energy market challenges by providing:
Portfolio Analysis to improve diversification and risk-adjusted performance=
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Asset Valuation to understand the market value and risk characteristics of =
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Training to improve your ability to identify and manage tactical and strate=
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Please visit our web site at http://www.rwbeck.com=20

-------------------------------------------------------------
POWER FUTURES =20
| Month | COB | Change | PV | Change |
| MAR | 19.25 | +0.25 | 21.25 | -0.20 |
| APR | 19.75 | +0.00 | 22.50 | -0.25 |
| MAY | 19.50 | +0.50 | 24.50 | +0.25 |
| JUN | 20.00 | -1.00 | 27.50 | +0.25 |
| JUL | 26.50 | -2.00 | 37.50 | +0.00 |
| AUG | 38.00 | -0.50 | 42.50 | -0.25 |
| SEP | 26.00 | -6.00 | 32.50 | -0.50 |
| OCT | 24.00 | -5.00 | 29.00 | +1.00 |
| NOV | 24.50 | -3.75 | 27.50 | +0.50 |
| DEC | 26.00 | -4.00 | 28.50 | +1.00 |
| JAN | 30.00 | +0.00 | 28.50 | -0.50 |
| FEB | 27.50 | +0.00 | 27.75 | -0.75 |
| Month | Entergy | Change | Cinergy | Change |
| MAR | 20.00 | +0.40 | 21.30 | -0.10 |
| APR | 20.00 | +0.40 | 21.50 | +0.10 |
| MAY | 22.50 | -0.60 | 24.50 | -0.25 |
| JUN | 27.10 | -0.40 | 29.80 | +0.05 |
| JUL | 34.65 | -0.35 | 38.40 | +0.05 |
| AUG | 34.65 | -0.35 | 38.40 | +0.15 |
| SEP | 21.70 | -0.05 | 23.15 | -0.10 |
| OCT | 21.95 | -0.05 | 23.00 | +0.00 |
| NOV | 21.95 | -0.05 | 23.00 | +0.00 |
| DEC | 21.95 | -0.05 | 23.00 | +0.00 |
| JAN | 24.25 | +0.00 | 26.00 | -0.10 |
| FEB | 24.25 | +0.00 | 26.00 | -0.10 |
------------------------------------------------------------
Power Futures =20
| Month | PJM | Change |
| MAR | 25.10 | +0.20 |
| APR | 25.10 | +0.20 |
| MAY | 28.55 | -0.05 |
| JUN | 35.25 | -0.25 |
| JUL | 46.35 | +0.15 |
| AUG | 46.35 | +0.15 |
| SEP | 27.10 | +0.10 |
| OCT | 26.10 | +0.10 |
| NOV | 26.10 | +0.10 |
| DEC | 26.10 | +0.10 |
| JAN | 30.25 | -0.10 |
| FEB | 30.25 | -0.10 |
-------------------------------------------------------------

Commodity Futures Trading Commission
NYMEX Natural Gas Futures=20
Reportable Positions as of 1/29/02=20

Open Interest: 465,995 10,000 MMBtu=20
Nonreportable
Non-Commercial | Commercial | Total | Positions
Long | Short| Spreading| Long | Short | Long | Short | Long | Short
11,147 59,577 40,707 377,068 333,282 428,922 433,566 37,073 32,429
Changes from 1/22/02 Change in Open Interest: -23,395
7,861 6,352 -2,837 -26,347 11,959 21,323 21,148 -2,072 -2,247
Percent of Open Interest for Each Category of Traders
2.4 12.8 8.7 80.9 71.5 92.0 93.0 8.0 7.0
---------------------------------------

Wisconsin Energy Power Plant Plan=20

Wisconsin Energy plans to build $3 billion in new electricity generators ov=
er the next nine years to meet growing energy demands. Forecasts indicate W=
isconsin will need more than the 2,800 MW the new units will generate by 20=
11. The projects include 2 natural gas fired generators and 3 coal burning =
units at existing power plants. Other power producers including Calpine and=
Mirant have delayed new construction in the state because of lower electri=
city demand and prices. The first natural gas fired should be under constru=
ction by early next year to be in service before the summer of 2005. Wiscon=
sin Energy has created a subsidiary that would build and own the generators=
and lease them back to the utility for up to 25 years. Calpine, Enron and =
PG?had opposed the proposal, saying it would delay deregulation in the stat=
e by more than a decade.=20
-------------------------------------------------------------

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Progas can custom build gas storage in the Upper Midwest.

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Progas is now accepting proposals and orders for years 2002-2007 for approx=
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8610 South Highway 277
Abilene, TX 79606
Phone: 915-698-3699
Fax: 915-698-2859
Email: gastorage@aol.com=20
-------------------------------------------------------------

FINANCIAL SUMMARY
The TSE 300 gained 42.02 points to 7690.57
The CRB Index climbed 2.22 points to 189.51
The US Dollar decreased 0.38 points to 119.79
The Dow declined 12.74 points to 9907.26
The S?500 lost 8.00 points to 1122.20
The Nasdaq was down 22.79 points to 1911.24
March NYMEX Crude Oil added 0.90 to 20.38
Canadian-US Exchange fell 0.0016 to 1.5907
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