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Enron Mail |
Introducing the Power Curve II
The November Forward Price Curve (updated from our September analysis) Introducing the Spark Spread Comparing the Energy Merchants Summary of key points: * Power prices have growth tighter since our September analysis; 2001 forward prices are higher in every region by an average of 5%. * The national average forward price is 23% higher in 2001 than in 2000. * We introduce the spark spread in this report. We expect a slightly wider power/gas spread in 2001, although natural gas prices continue to climb to record levels. This is bullish for generators. * Generators are off 29% from summertime peaks; we suggest accumulating prior to next summer. We highlight Calpine, NRG Energy, and Southern Energy. * We also recommend energy merchants, whose strong trading skills offer protection in any commodity pricing environment. We recommend Enron, Dynegy, and Duke Energy. (See our Merchant Matrix on page 7.) <<The Power Curve II.pdf<< If you have any trouble opening the document, please call Judy Collazo at 212-816-2760. Raymond C. Niles Power/Natural Gas Research Salomon Smith Barney (212) 816-2807 ray.niles@ssmb.com s - The Power Curve II.pdf
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