Enron Mail

Subject:h: Eyeforenergy Briefing
Date:Thu, 18 Oct 2001 19:07:27 -0700 (PDT)


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Friday, October 19, 2001 Issue 39 EDITORIAL Weathering Risk This =
week's Briefing is concerned with risk, chiefly that presented by weather i=
n the face of newly deregulated (re-regulated?) energy markets. Our main f=
eature explains how susceptible the industry has become to increasingly vol=
atile weather, and how the plethora of risks which become presented (includ=
e those directly related to earnings) can be alleviated by trading a portfo=
lio of weather derivatives. We also outline some of the companies who are =
already emerging as major players in what is already becoming an essential =
tool for managing financial risk. On a broader note, our second feature o=
utlines approaches to managing risk in general, and how energy companies ca=
n identify and consolidate new opportunities, and reap real financial benef=
it from minimal risk. Also, this week saw Eyeforenergy's conference in Si=
ngapore, which has been a resounding success. In a future issue of the Bri=
efing, we will bring you details of events as they unfolded at this three-d=
ay meeting of some of the most influential and forward-thinking companies a=
nd organizations in the Asian energy market. For now, you can apply for un=
limited access to the speakers' presentations at this conference - more det=
ails are available here . -- Bruno Russell, Acting Editor FOCUS We=
ather is Risky Business for Energy Providers The pathway to economic obli=
vion is paved with the bleached bones of those that failed to manage risk. =
It has been said that economic history is the history of people learning to=
manage risk. As deregulation takes root, power providers are spreading the=
ir reach to the far corners of the globe, in an effort to minimize their ri=
sk in any given market. You don't need a quick trip to Las Vegas to realiz=
e that the laws of probability are alive and well in the energy sector. Eve=
n the most basic of economic indicators; things that once seemed unpredicta=
ble, crop harvest, storms, war, famine, the flow of capital can all be fore=
cast with some degree... Click here for Full Story INSIGHT Managing =
Risk, "That Old Black Magic" Headlines coming out of the energy sector ar=
e hard to escape. One company reports record profits, another record losses=
, another goes belly up, yet even more merge, acquire, form alliances, expa=
nd, contract and jockey for position as deregulation and increasing competi=
tion in energy markets thrust them from a historically stable, low risk env=
ironment into a brave new world, full of ever changing risk and opportuniti=
es. Add to the mix shareholders screaming for more profits, consumers dema=
nding lower prices, regulators hell bent on proving deregulation is a myth;=
there is only re-regulation in a new world order. With this dislocation, t=
he first issue for shareholders and managers of the affected companies to c=
ome... Click here for Full Story ADVERTISEMENT [IMAGE] Eyeforenergy G=
reen Convention 2001 Hotel Le Plaza, Brussels 5-6 November 2001 In light =
of new EU Directives which aim to double green power's share of the electri=
city requirement in Europe to 22.1% by 2010, we are very pleased that Johan=
nes Maters of the Commission will deliver this event's opening address, dis=
cussing the Commission's role in promoting the use of renewable energy. H=
e heads a formidable programme of speakers from Europe's energy majors who =
will be presenting their strategies for commercial green success, including=
representatives of BP, Enron, Nuon, Erga, RWE Power, JP Morgan and many mo=
re. For full programme and speaker details, click here [IMAGE] Landmar=
k Graphics and Petroleum Place -- Accelerating Business Efficiency Landma=
rk Graphics and Petroleum Place Delivers Enormous Efficiencies within Acqui=
sition and Divestiture. How? Through online delivery of data and evaluation=
tools within an APS environment to afford dramatic efficiencies for both s=
ellers and buyers. Visit www.petroleumplace.com [IMAGE] The Business o=
f Fuel Cells for Stationary Applications Le Plaza Hotel, Brussels, November=
27-28th Business models, strategic alliances, distribution channels, ear=
ly market opportunities and financing will be discussed in Brussels from No=
vember 27th to 28th. Companies delivery presentations include: End users a=
nd distributors (RWE, Gaz de France, UK local government), Manufacturers (A=
lstom Ballard, Siemens Westinghouse, Global Thermoelectric, Cermaic Fuel Ce=
lls Ltd., Zetek Power), Component and catalyst providers (DuPont, Johnson M=
atthey Fuel Cells, Vandenborre, Idatech), Investors and independent financi=
al analysts (Metasource, Phil Doran), and Industry Associations (World Fuel=
Cell Council, COGEN Europe). As this event has been produced by our siste=
r organization, EyeforFuelCells, we are pleased to announce that subscriber=
s to the Eyeforenergy Briefing automatically qualify for a 20% discount on =
registration. Just quote "brief" on any registration material. For the fu=
ll programme and registration, please click here: http://www.eyeforfuelcell=
s.com/events/europe2001/programme.shtml [IMAGE] NEWS ROUND UP - WEEK IN =
REVIEW Green Mountain Stakes Claim to Texas Sun, Plans Two Solar Projects=
October 16, 2001---Two solar arrays capable of producing a combined 100k=
W are on the drawing boards of Green Mountain Energy Company. At the same t=
ime the company announced the launch of the Big Texas sun Club, billed as a=
n easy way for Green Mountain customers to support the company's solar ener=
gy efforts. "The launch of this new product and the development of these n=
ew solar facilities is a result of the tremendous customer demand we have e=
xperienced in the Texas market," said Gillan Taddune, vice president and ge=
neral manager of the Texas region for Green Mountain Energy Company. "We ha=
ve large... Click here for Full Story Scientists Urge U.S. to Develop M=
ore Renewable Energy Resources October 15, 2001---In a report released to=
day the Union of Concerned Scientists urges the United States to take a pro=
-active stance on renewable energy. The report says the country should esta=
blish a goal of producing at least 20 percent of its electricity from wind,=
solar, geothermal and other renewable energy sources by 2020. The Cambrid=
ge, Massachusetts-based group said currently more than half of the electric=
ity produced in the United States comes for power plants that burn coal, wi=
th less than 2 percent of the country's electricity coming from renewable s=
ources. "Adopting a renewable energy standard would diversify... Click he=
re for Full Story Enron's European Electricity Trading Takes Off Octo=
ber 12, 2001---Houston based energy giant Enron reports that it has traded =
five times as much wholesale electricity in continental Europe during the f=
irst half of this year than it did in a similar period last year. Continen=
tal power trading director Gregor Baeumerich told Reuters the company trade=
d 523 terawatt hours in the first half - roughly equivalent to annual Germa=
n power demand - up from 93 terawatt hours in the first half of 2000. ``O=
n average we are now doing around 200 deals a day with about... Click here =
for Full Story Calpine to Float $2.56 Billion Bond Offering October=
11, 2001---Calpine announced Thursday that it plans to raise about $2.56 b=
illion from a four-currency bond offering and a sale of pass-through certif=
icates. According to a source familiar with the scheme the San Jose, Cali=
fornia based independent power company, has enjoyed strong demand... Click =
here for Full Story Shell Marches Back to Profitability October 10,=
2001---After losing some R$100 million between 1999 and 2000 Shell is back=
in the black and experiencing considerable growth in 2002. Shell also prom=
ised to conquer the leadership of the market over the next years. The compa=
ny will invest R$180mil in assets in 2002, a growth of 33% if... Click here=
for Full Story Puget Energy's Stock Dips as Regulators Reject Rate Inc=
rease October 9, 2001---As regulators rejected an emergence rate increa=
se Puget Energy's management slashed the Washington utility's earnings repo=
rt, sending the stock to its lowest price in eighteen months. The company=
's utility arm, Puget Sound Energy had asked Washington State's Utilities a=
nd... Click here for Full Story Latest News Now! [IMAGE] EDI=
TORIAL [IMAGE] Weathering Risk ARTICLES [IMAGE] Weather is Risky Busines=
s for Energy Providers [IMAGE] Managing Risk, "That Old Black Magic" NEW=
S ROUND UP [IMAGE] Green Mountain Stakes Claim to Texas Sun, Plans Two Sola=
r Projects [IMAGE] Scientists Urge U.S. to Develop More Renewable Energy R=
esources [IMAGE] Enron's European Electricity Trading Takes Off [IMAGE] C=
alpine to Float $2.56 Billion Bond Offering [IMAGE] Shell Marches Back to =
Profitability [IMAGE] Puget Energy's Stock Dips as Regulators Reject Rate =
Increase EVENTS [IMAGE] Green Convention 2001 [IMAGE] EEO Europe - =
Energy Trading in the New Economy [IMAGE] Emissions Trading 2002 [IMAG=
E] Weather Trading 2002 SUBSCRIBE Please enter your email address b=
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l below. Thank you If you have any comments about this newsletter or =
you would like to suggest future topics or industry related news, please em=
ail bruno@eyeforenergy.com [IMAGE] =09