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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (1358)	12/20/2001 11:05:25 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 1438

Roger, I think that what we are missing on CPN is the extent and nature of long term contracts they have, and assumptions they have made on demand over the next ten years (and thus major commitments to Cap expenses that will be difficult to get out of) without the market for that capacity materializing. Unfortunately, these are guesses, as i said, I can't discern these types of commitments in the balance sheet, and I fear that a lot of the forward power was sold to Enron, and the question is will they stand (or will they be around to stand) behind these commitments, now that the whole spectrum of energy costs has been ratcheted down by a good 50%. zeev