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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: manny t who wrote (30727)	3/11/2004 3:04:11 PM
From: jim_p	Respond to of 206084

manny, My thoughts are that it's giving us another buying opportunity. The issues I see are: 1. FERC will most likely have the final say and they have already settled with RRI. 2. RRI did not break any laws that were in place at the time. Power prices fell and RRI lost money on a trade. They were simply trying to make up the loss by decreasing the supply in hopes of recovering their losses. We may not like it, but last I checked it was called free enterprise. RRI does not have a monopoly in CA and they should have the right to sell their product at a profit. If profits remained to high for to long competition would come in a lower prices as they have done. 3. The potential charges are against a subsidiary of RRI which both S&P and RRI already have come out and said the outcome will not have a material effect on the company as a whole. 4. The actions were those of several employees. I can't see RRI being harmed unless they did something that was both illegal and it was condoned by RRI's company policy. I suspect they were not following company policy when they took the actions they took. I agree with the last comment about the worst that can happen is it will further tarnish RRI's corporate image, but the board has already addressed that issue by making a change in management. It will be interesting to see the charges that may come out in the next several weeks. Jim