Q: ISDA International Swaps and Derivatives Association, Inc. 600 Fifth Avenue Rockefeller Center - 27th floor New York, NY 10020 U.S.A. URGENT!! URGENT!! URGENT!! URGENT!! URGENT!! URGENT!! URGENT!! Please note that the Trading Practice Committee Meeting scheduled for this evening at 6:00 at the offices of Bank of America has been postponed until further notice. Kindly acknowledge by replying to this message. **IF YOU HAVE CONFIRMED TO ATTEND ON BEHALF OF YOURSELF AND/OR YOUR COLLEAGUES, KINDLY FORWARD THIS MESSAGE TO THEM IMMEDIATELY**
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A: URGENT NOTICE FOR TODAY'S TRADING PRACTICE COMMITTEE MEETING.

Q: It looks like we are done on the new Citizens deal effective July 1. I have sent original contracts for execution. We now have to put the deal in the system. This is a little complicated. The attached spreadsheet indicates how this deal will work, using June as an example. The only differences between June and future months are: 1) In the future, we will collect a $.09/MMBtu demand charge with $.02/MMBtu of this going to EAMR (ENA gets $.07/MMBtu) 2) In the future, the PG&E discount is $.10, not $.25. Some of the complicated booking issues are: 1. We need to show the John Cogan commission as a separate deal and a cost to ENA 2. We need to show the payment to EAMR as a separate deal and a cost to ENA 3. We will continue to bill Citizens for the TW Mainline cost on our utility deal 1 and 2 above are pretty straight forward and should not create any deal entry difficulties other than someone will have to enter the deals. Number 3 is more difficult. The complexities relate to where we are making the sale and what costs should be included. Can you get with the folks who can help us here and have them come up with a recommendation on how this deal should be booked? Let me know if you have questions. I also believe I can add value in speaking with Darren Giron or others. I guaranty their initial recommendation will not be 100% workable. Thanks!
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A: Citizens Gas Deal

Q: Fellas, Presto has asked me to be the contact to Allan Stewart at PIRA with regard to setting up an arrangement for their consulting services. I'm currently having information-gathering discussions over services and fees for both gas and power, in both the east and west. In order to fully incorporate everyone's needs into our arrangement with PIRA, I'll be contacting you this week to gather requests. Or, if you know what you need, please just reply to me with the specific information. Thanks,
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A: PIRA

Q: <<IPW091001.doc>> Good Morning, Attached, please find the latest issue of our Independent Power Weekly. Also note that today and tomorrow (9/10 and 9/11), CSFB will host a Power Generation Supply Chain Conference at the Plaza Hotel in New York City. This event is designed to provide investors with a wholistic perspective on all aspects of the sector-from coal and natural gas companies, to equipment and service providers, to the power producers themselves. The major power generators are scheduled to speak on Tuesday morning (9/11). Between 9.25 am - 11.50 am presentations will be given by the following companies: Aquila, Calpine, Mirant, NRG Energy, Orion Power, Reliant Resources and TECO Energy. In addition, at 8 am on Tuesday there will be a panel discussion focusing on the state of the generation market. Finally, at 12 pm on Tuesday Judah Rose a power market consultant with ICF Consulting will offer his perspectives on the outlook for the sector during a luncheon presentation. Summary: 1. IPPs Fall 3.7% Last week our IPP composite declined 3.7%, outperforming both the NASDAQ (-6.5%) and the S&P 500 (-4.2%). Shaw Group, which was up 14.4%, was the strongest performer in the group. AES Corp was the weakest performer, falling 10.7%. 2. Awaiting a Bottom We attribute last week's stock price performance to broader market concerns regarding the health of the macro economy and its ability to recover by the end of 2001. Our sense is that investors recognize that IPP valuations are extremely attractive. However, prior to moving aggressively back into the sector, they await some indication that stock prices have stabilized and a bottom has indeed been achieved. 3. Shell Terminates Contract with CPN; Concerns Unwarranted Following its exit from the retail marketing business, Shell terminated a 5 year 3,000 MW requirements contract with Calpine. We believe some investors concluded that this announcement had negative implication for CPN's earnings outlook and its overall hedging strategy. In our view these concerns are unwarranted for 4 reasons: 1. The Shell contract was unusual; 2. There is no earnings impact; 3. Remarketing the output will not be an issue; and, 4. The status of CPN's hedging objectives is unaffected. 4. Legal and Administrative Issues Remain for California Windfall Profits Tax Bills Recently, two bills that would impose a windfall profits tax on California generators have been advancing through the California legislature and will likely by heard on the floor of the Assembly this week. The current legislative session will end this Friday (9/14), requiring any pending bills to be passed by that time. In our view these bills are best understood as a negotiating tactic by Governor Gray Davis and Democrats in the legislature designed to extract additional concession from the FERC and the state's power generators. While we expect at least one or both of these bills to advance through the legislative process, full implementation is likely to be prevented by a number of legal and administrative impediments. Regards,
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A:
CSFB Independent Power Weekly-Issue #42