FW: CSFB Independent Power Weekly-Issue #30 ,
 -----Original Message-----
From: 	"Sifert, Bryan" <bryan.sifert@csfb.com>@ENRON [mailto:IMCEANOTES-+22Sifert+2C+20Bryan+22+20+3Cbryan+2Esifert+40csfb+2Ecom+3E+40ENRON@ENRON.com]  On Behalf Of "Stein, Neil" <neil.stein@csfb.com>
Sent:	Monday, June 11, 2001 6:26 AM
To:	undisclosed-recipients:;@ENRON
Subject:	CSFB Independent Power Weekly-Issue #30

Good Morning,

Attached, please find the latest issue of our Independent Power Weekly.

 <<IPW061101.pdf>>

Summary:
1. IPPs Fall 6.9%   Last week we saw continued lackluster performance from
the Independent Power Producers.  Our composite fell 6.9%, underperforming
both the NASDAQ (+3.1%) and the S&P 500 (+0.3).  Mirant, which was down
1.6%, was the strongest performer in the group.  Shaw Group was the weakest
performer, declining by 12.0%.

2. Politics and Price Caps Dominate Investor Attention  In our view, last
week's continued poor stock price performance reflected 2 major issues: 1.
Lingering political uncertainties with increased media attention; and, 2.
Soft spot power market conditions across much of the US.

3. Power Markets Recover on Friday   Importantly, on Friday (6/8), most
regions across the US experienced a significant upturn in power pricing with
forecasts calling for hotter weather.  Trades for Monday delivery, which
took place on Friday, saw price increases of 10-25% on average in the
Eastern and Central regions.  In the Western region, prices spiked up
40-50%.  Should these price increases prove to be sustainable, we would
expect to see a meaningful improvement in investor sentiment.

4. EIX Bankruptcy?  Implications for the IPPs   Recently there has been
increasing speculation that a Chapter 11 bankruptcy filing by Southern
California Edison, the utility subsidiary of Edison International, could be
imminent.  We thought it would be timely to analyze the implications of an
SCE bankruptcy for the IPPs.  Our overall conclusion is that an SCE
bankruptcy would be neutral for the sector.  Such an event would have no
impact on the earnings estimates or forecasted growth rates for any of the
companies under our coverage.  In addition, none of the companies have any
direct receivables exposure to SCE.  Finally, we believe reserves taken
against accounts receivable balances from the CalISO and PX across the
sector adequately mitigate exposure to potential bad debt writedowns.

5. Looking Ahead: ORN Analyst Meeting   On Tuesday (6/12), Orion Power will
host its first major analyst meeting since its November 2000 IPO.  Beyond
giving a detailed review of the business, we expect management to discuss
the prospect of future acquisitions.  Recently, management has indicated
that it is evaluating a number of potential transactions located primarily
in the Southeast.  We also expect the company to provide a detailed
regulatory update on its key markets-PJM and NY.  Finally, we expect
management to reaffirm prior guidance for 2001 of $1.15 per share.  While we
believe ORN's exposure to the New York City market offers meaningful upside
potential, we believe the company will continue with its conservative stance
for the year.  Our 2001 and 2002 EPS estimates for ORN remain $1.20 and
1.60.  Our target price is $38.

Regards,

Neil Stein   212/325-4217
Bryan Sifert   212/325-3906


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 - IPW061101.pdf
louise.kitchen@enron.com, christopher.calger@enron.com, w.duran@enron.com, 