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Strategies & Market Trends : IPPs and Merchant Energy Co.s -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (422)	10/10/2002 6:21:57 PM
From: ItsAllCyclical	Respond to of 3358

EP's CA fine, if any... I'll leave that one up to the "experts": 1) This article implies that it may be in excess of 1 billion dollars. That would lead me to believe that in a worst case scenario we may be talking about 1-2 billion at most. biz.yahoo.com 2) Jim P. seems to come to the same conclusion. I've following Jim for a long time. I'd put his opinion above most of the reseach out there. 3) Credit Suisse research says that the FERC ruling was very flawed and in a worst case scenario wouldn't hold up in D.C. Circuit Court of appeals (decision would be late '03 if necessary). 4) Check out El Paso's response: elpaso.com In my opinion, a worst case scenario would be a compromise of some sort and a best case would be total EP victory. This is a company that pays almost 500 mil/year just in dividends. I think they could recover from almost any fine. Although California has some political clout I'm willing to bet that Texas doesn't want to see EP go under (nor is it in California's best interest). Thus my worst case compromise scenario.