Enron Mentions - 07/05/01 ,
 Wall Street Reporter Interviews George A. Kast, President & CEO of Global 
Water Technologies
Business Wire, 07/05/01

Developments in California's energy crisis
Associated Press Newswires, 07/05/01

UK: ANALYSIS-Where have all the LME volumes gone?
Reuters English News Service, 07/05/01
USA: UPDATE 1-New Power adds customers with two deals.
Reuters English News Service, 07/05/01

Factiva Energy Digest
Factiva Energy Digest, 07/05/01

India Risks Lower Rating If Deficits Grow, S&P Says (Update2)
Bloomberg, 07/05/01

California Seeks Cheaper Long-Term Power Contracts, Paper Says
Bloomberg, 07/05/01

USA: U.S. Cash LPG-Propane firms on bullish crude oil fundamentals.
Reuters English News Service, 07/05/01


Wall Street Reporter Interviews George A. Kast, President & CEO of Global 
Water Technologies

07/05/2001
Business Wire 
(Copyright (c) 2001, Business Wire) 

GOLDEN, Colo.--(BUSINESS WIRE)--July 5, 2001--Global Water Technologies, Inc. 
(OTCBB: GWTR), a full-service cooling water company utilizing advanced 
technologies and engineered solutions to provide process cooling water to 
power plants, process industry and municipalities, worldwide, today announced 
that George A. Kast, President and CEO, has been featured in an interview by 
Wall Street Reporter. In the interview, Kast discussed industry trends, 
market potential and growth opportunities in the markets that the Company has 
cultivated. 
The interview was conducted on Tuesday, July 3, 2001, at 1:00 p.m. (MT) by 
Matt Cleary, and is currently audibly available, on the Wall Street 
Reporter's web site, www.wallstreetreporter.com, by clicking on the CEO 
Interviews link.
Commenting on this interview, George Kast, President and CEO stated: "We are 
very pleased to be featured in an interview by the Wall Street Reporter. This 
is a very exciting time for Global Water Technologies, Inc. and we are 
excited that this forum gives us the opportunity to present our story to the 
investment community." 
The interview primarily covered the most recent corporate events and the 
Company's efforts to implement its business strategy, capitalizing on its 
competitive advantages in the rapidly expanding power, energy and utility 
sector. The Wall Street Reporter is a leading information source for 
professional investors seeking new investment ideas. Their in-depth 
interviews of CEOs with leading public companies are geared toward 
sophisticated investors who demand an unbiased, unscripted, first-hand 
perspective that enables them to make informed investment decisions. 

About Global Water Technologies 

Global Water Technologies, Inc. (OTCBB: GWTR) is a company with major 
interests in the areas of power, energy and water. The company utilizes its 
proprietary technology to enhance power production by providing cold, clean 
water to increase operating efficiencies, reduce water use and operating 
costs. Through this process, GWTR is able to increase their client's power 
output by up to 10% depending upon age, design and efficiency of the plant. 
GWTR's client base includes, but is not limited to, the following companies: 
General Electric (NYSE: GE), Enron subsidiary companies (NYSE: ENE), Raytheon 
Company (NYSE: RTN), Archer Daniels Midland (NYSE: ADM), British Petroleum 
Amoco, Mitsubishi, Mobil, Texaco (NYSE: TX), Duke Fluor Daniel, Kerr McGee 
(NYSE: KMD) and Calpine (NYSE: CPN). 

Forward-Looking Statement 

This news release contains forward-looking statements within the meaning of 
Section 27A of the Securities Act of 1933, as amended, and section 21E of the 
Securities Exchange Act of 1934, as amended. Such statements are subject to 
risks and uncertainties that could cause actual results to vary materially 
from those projected in the forward-looking statements. The Company may 
experience significant fluctuations in future operating results due to a 
number of economic, competitive and other factors, including, among other 
things, the size and timing of customer orders, changes in laws, new or 
increased competition, delays in new products, production problems, changes 
in market demand, market acceptance of new products, seasonal in product 
purchases, and changes in foreign exchange rates. These factors, and other 
factors, which could materially affect the Company and its operations are 
included in the Company's filings with the Securities and Exchange Commission 
and are incorporated herein.

CONTACT: Global Water Technologies, Inc. Steve Rash, 303/215-1100, Ext. 192 
info@gwtr.com www.gwtr.com or Equity Growth & Management Tom Waite, 
407/444-0375 
12:00 EDT JULY 5, 2001 
Developments in California's energy crisis
By The Associated Press

07/05/2001
Associated Press Newswires 
Copyright 2001. The Associated Press. All Rights Reserved. 

Developments in California's energy crisis: 
THURSDAY:
- No power alerts as electricity reserves stay above 7 percent. 
- The Senate Judiciary Committee continues its debate at a hearing over Gov. 
Gray Davis' proposal to aid financially strapped Southern California Edison. 
- Lt. Gov. Cruz Bustamante and Assemblywoman Barbara Matthews introduce two 
additional whistleblowers from power plant operated by Duke Energy. 
- The grand jury that will probe criminal charges of price gouging by energy 
generators will convene this week in Sacramento. The 19 new members of the 
Sacramento County grand jury were assigned by State Attorney General Bill 
Lockyer and will assess the results of several government investigations. 
- The U.S. Trustee argues again in bankruptcy court that ratepayers should 
have a committee to represent their interests in the Pacific Gas & Electric 
Co. bankruptcy proceedings. 
WEDNESDAY: 
- No power alerts as electricity reserves stay above 7 percent. 
WHAT'S NEXT: 
- The Senate committee investigating possible price manipulation in 
California's energy market meets Tuesday. The committee will vote on contempt 
citations against generators Mirant and Enron who failed to comply with 
subpoenas for documents. Six other suppliers have until Tuesday to turn over 
documents. 
THE PROBLEM: 
High demand, high wholesale energy costs, transmission glitches and a tight 
supply worsened by scarce hydroelectric power in the Northwest and 
maintenance at aging California power plants are all factors in California's 
electricity crisis. 
Southern California Edison and Pacific Gas and Electric say they've lost 
nearly $14 billion since June 2000 to high wholesale prices the state's 
electricity deregulation law bars them from passing on to consumers. PG&E, 
saying it hasn't received the help it needs from regulators or state 
lawmakers, filed for federal bankruptcy protection April 6. Electricity and 
natural gas suppliers, scared off by the companies' poor credit ratings, are 
refusing to sell to them, leading the state in January to start buying power 
for the utilities' nearly 9 million residential and business customers. The 
state is also buying power for a third investor-owned utility, San Diego Gas 
& Electric, which is in better financial shape than much larger Edison and 
PG&E but also struggling with high wholesale power costs. 
The Public Utilities Commission has approved average rate increases of 37 
percent for the heaviest residential customers and 38 percent for commercial 
customers, and hikes of up to 49 percent for industrial customers and 15 
percent or 20 percent for agricultural customers to help finance the state's 
multibillion-dollar power buys. 
Track the state's blackout warnings on the Web at 
www.caiso.com/SystemStatus.html.

UK: ANALYSIS-Where have all the LME volumes gone?
By Martin Hayes

07/05/2001
Reuters English News Service 
(C) Reuters Limited 2001. 

LONDON, July 5 (Reuters) - Years of rising business on the London Metal 
Exchange (LME) could be over, after volume dropped in the first half of 2001, 
and many in the world's largest industrial metals market say the growth may 
never be recaptured. 
Senior traders cite several factors behind the 16 percent decline in business 
in the first six months - prices are depressed, rival electronic systems have 
sprung up, global economies are weak.
"The problem is the general conditions that are prevailing at the moment - we 
are seeing recessionary signs that are dampening the market. It is cyclical, 
and that is the worry because the cycle is lasting some time," one said. 
Since 1991, volumes have risen from 16.93 million lots to 2000's record 66.44 
million. There have previously been troughs in the business and price cycle, 
but these did not markedly affect volumes - the 1994/1995 decline was some 
500,000 lots. 
So the concern now is that this downturn is different. 
"That (lower volume) is horrible. Some business is undoubtedly going off the 
market, but a lot of people are not making proprietary positions anymore - 
they are not making any money," a director at an LME associate broker said. 
"It is going to get a lot worse - it is a bleak picture at the moment for 
next year. A lot of people will have to ask: 'Is it worth being in the 
business?'," a manager at another broker said. 
The LME said this week that total futures and options turnover during 
Jan/June 2001 fell to 29.899 million lots, down from Jan/June 2000, when 
volume rose 18 percent to 35.440 million. Traded options turnover has 
virtually halved, falling to 1.481 million lots from 2.784 million. 
LME data showed that this half-year was still the third highest on record, 
only tailing 1999 by 100,000 lots. 
"(this)...clearly illustrates the continuing health of the LME and the 
essential part it plays as a hedging medium to the global metal market, 
despite the current economic environment," the LME said on Thursday. 
SWITCHED ON SCREENS BLUR THE PICTURE 
The major factor that emerged last year is electronic trading, either 
web-based or specific screen-based platforms. 
Competitors such as Enron Online and Spectron Metals have grabbed business 
while the LME has also sanctioned and launched its own system, LME Select. 
Many of these trade LME contracts, so the turnovers are still being 
incorporated into the Exchange's volumes. But the ethos of screen-trading has 
implications for broker costs and revenues. 
"You are seeing more business going towards the screens - and some platforms 
will offer a less-regulated OTC (over-the-counter) market," the manager said. 
LME ring-dealers and associate brokers now face even lower commissions. Costs 
will fall when screens offer straight-through processing, embracing 
back-office functions such as matching. 
"In an electronic market, the cost of serving a client drops dramatically and 
if a customer has direct access to the market, which could happen, he gets 
direct control," he said. 
In London's soft commodity markets, which migrated away from trading floors 
to screens in 2000, commissions have fallen sharply, he noted. 
For the moment, the LME retains a traditional open-outcry floor - it and 
London's International Petroleum Exchange (IPE) are the last bastions of this 
form of trading. 
Business is also transacted in offices over telephones. But this is also 
changing with the advent of screens. 
"In some ways the screens, whoever they belong to, may be the problem," a 
senior trader said. 
"In the old days, you used to talk to people more, get a feel for the market, 
and take a punt. Not so much now - the big boys still chat, but not as much, 
and with the screens it is almost a 'matched bargain' situation," he said. 
METAL INDUSTRY SHYING AWAY 
The malaise affecting prices is not helping, especially as there is little 
incentive for consumers to buy, while a falling market always sees less 
speculative activity. 
Most of this year has seen prices progressively weaker, with copper at its 
lowest since July 1999, zinc and tin at levels last seen nearly eight years 
ago, lead at a 12-month low-point and nickel and aluminium at two-month lows. 
Although prices have been softer, there have been occasions when tightness 
has prevailed. When the market moves from contango, when nearby prices are 
cheaper than forward, into backwardation, which is the opposite, hedging 
dries up. 
Although the LME derives much of its liquidity from speculators, the bulk of 
its trade comes from the metals industry - hedging and price protection. 
"There is routine hedging taking place, but what one would call the strategic 
positioning is just not happening at the moment," the manager said. 
MARKET CONTRACTION LIKELY 
If volumes continue to fall, and there is the pressure on commissions, then 
further contraction and consolidation in the market appears likely. There are 
now only 12 ring-dealing members of the LME - those who alone are entitled to 
trade on the open-outcry floor - down from nearly 30 in the mid-1980s. 
"There is too much capacity in the market even now, and these ongoing rumours 
do not help. For months one RDM has supposedly been taking over another. It 
is about time they got on with it," the senior trader said. 
"A base metal trading operation may eventually come down to a few people 
sitting at the end of a treasury desk," the associate broker director said.

USA: UPDATE 1-New Power adds customers with two deals.

07/05/2001
Reuters English News Service 
(C) Reuters Limited 2001. 

NEW YORK, July 5 (Reuters) - New Power Co., a national energy provider partly 
owned by powerhouse Enron Corp. , said on Thursday it plans to make two 
separate acquisitions that would increase its customer base by about 20 
percent and raise its visibility in Pennsylvania and Ohio. 
Financial terms of the agreements with AES Direct, the retail marketing 
subsidiary of independent power company AES Corp. , and with CoEnergy, a unit 
of Michigan-based DTE Energy , were not disclosed.
Purchase, New York-based New Power, a unit of NewPower Holdings Inc. , which 
was formed to take advantage of electricity deregulation, said the deals 
would add a total of 121,000 electric and natural gas customers. At the end 
of the first quarter, it had about 631,000 customers, a company spokeswoman 
said. 
New Power said it signed an agreement to buy AES Direct's customer base and 
related assets, including natural gas inventory, supply and transportation 
contracts as well as billing and customer service operations. 
It also is buying Ohio-based customers from CoEnergy, gaining entry into 
service areas of four additional utilities. 
Shares of New Energy were unchanged at $8.75 in morning New York Stock 
Exchange trade, the low end of a 52-week range of $4.63 to $28.69.

Factiva Energy Digest - July 5, 2001.

07/05/2001
Factiva Energy Digest 
Copyright (c) 2001 Dow Jones Reuters Business Interactive Ltd., trading as 
Factiva. 

POWER & UTILITY 
*German Utilities Should Expand Abroad, Consultant Says 
COLOGNE, Germany (Reuters) - Germany's top utilities lag far behind major 
foreign rivals in the share of revenues derived internationally, which could 
limit future growth, a consultant told an industry conference on Thursday. 
"Germany's market leaders lag behind in their market presence in Europe and 
the rest of the world," said Volker Flegel, a European energy expert at 
consultancy A.T. Kearney's Munich office. "If they don't act fast, the gap 
will widen....They have to adopt more of a pan-European perspective," he 
said, singling out Spain as the most attractive investment target. 
Flegel said revenues generated outside Germany by the country's top four 
utilities ranged between 3.0% of turnover at HEW, to 11% at E.ON, 11.7% at 
RWE (RWEG.DE) and 15.1% at EnBW. By comparison, the shares of foreign sales 
at U.S. energy groups TXU and Enron were 36% and 18.6%. Foreign sales 
contributed 18.6% to turnover at French/Belgian group Electrabel and 18.3% at 
France's EdF. 
*New Power Adds 20% to Customer Base With Two Deals 
NEW YORK(Reuters) - New Power Co., a national energy provider partly owned by 
powerhouse Enron Corp., on Thursday increased its customer base by about 20% 
and its visibility in Pennsylvania and Ohio with two separate acquisitions. 
Financial terms were not disclosed. New Power, a unit of NewPower Holdings 
Inc., which was formed to take advantage of electricity deregulation, added a 
total of 121,000 electric and natural gas customers to its customer base of 
about 615,000. 
New Power said it signed an agreement to buy the customer base and related 
assets of AES Direct, the retail marketing subsidiary of independent power 
company AES Corp., which includes natural gas inventory, supply and 
transportation contracts as well as billing and customer service operations. 
It also bought Ohio-based customers from CoEnergy, a unit of Michigan-based 
DTE Energy, gaining entry into service areas of four additional utilities. 
Full versions of these and other energy stories are available from Dow
Jones Interactive and Reuters Business Briefing 
Factiva Contact: Marc Donatiello, +1 609-627-2659, 
marc.donatiello@factiva.com. 
(Copyright (c) 2001, Dow Jones & Company, Inc.). 

India Risks Lower Rating If Deficits Grow, S&P Says (Update2)
2001-07-05 09:12 (New York)

India Risks Lower Rating If Deficits Grow, S&P Says (Update2)

     (Adds minister's comment starting in 19th paragraph.)

     New York, July 5 (Bloomberg) -- India must cap its federal
and state government budget deficits or risk having its credit
rating lowered, a Standard & Poor's analyst said.
     India's ``BB'' rating, which is two notches below investment
grade, may be cut if the combined deficits widen to more than 10
percent of gross domestic product from nine percent now, Joydeep
Mukherji, S&P's associate director and India analyst, said in an
interview.
     ``We continue to watch the fiscal problem very closely as
that is the most vulnerable area that could lead to a negative
rating action,'' Mukherji said.
     The warning comes as the government plans to increase
spending to bolster a slowing economy. A lower rating would raise
the cost of borrowing for the government and Indian companies,
already among the highest in Asia. India's benchmark 10-year bond
yield is 9.6 percent, higher than 6.5 percent for comparable
Chinese bonds and 6.8 percent for South Korean bonds, both of
which have an investment grade rating.
     S&P lowered the outlook on India's rating to ``stable'' from
``positive'' in October. The agency cited India's failure to meet
deadlines for sales of state-owned companies. The rating is among
the lowest in the region.
     Last week, an analyst for Moody's Investors Service said
India must step up sales of state assets and trim its budget
deficit to avoid a reduction in the outlook on its debt. Moody's
``Ba2'' rating, also two notches below investment grade, has a
``positive'' outlook, meaning it may be raised.

                         Growing Debt

     Fitch cut India's long-term sovereign rating outlook to
``negative'' from ``stable'' on May 31. Fitch, which rates India
``BB+,'' one notch below investment grade, cited ``concerns about
fiscal policy, privatization and a deterioration in the investment
climate.''
     ``Any downward change in the country's rating or outlook will
adversely impact investments in India,'' said Kalpana Morparia,
executive director of lender ICICI Ltd., which borrowed about $100
million in international markets last year.
     Years of budget deficits have saddled India with 14 trillion
rupees ($297 billion) of debt, equal to about 63 percent of GDP.
Servicing the debt leaves little money to invest in schools,
hospitals or other projects that could improve the well-being of
Indians and raise the rate of economic growth in the world's
second most-populous country.

                             Slowdown

     The economy expanded 3.8 percent in the quarter ended March
31 from a year earlier, down from 5 percent growth the previous
quarter and the slowest pace in nearly three years, as a two-year
drought pruned rural incomes. In response, Finance Minister
Yashwant Sinha said last week he would step up government spending
to stimulate the economy.
     ``Lower growth may mean lower tax revenue and increased
pressure on governments to raise spending that could enlarge the
combined deficits of the central and state governments beyond 10
percent of GDP this year, potentially weakening the rating,''
Mukherji said.
     Investors too are getting concerned with the government's
profligacy. In the first two months of the fiscal year, the
central government's budget deficit has reached a quarter of the
target for the year as a whole.
     ``The growing deficit bothers me,'' said Bharat Shah, who
manages 33 billion rupees at Birla Sun Life Asset Management in
Mumbai. ``There's a need for a sharp reduction in expenditure that
will call for political consensus, which I don't think is in
place.''
     Without pruning deficits, the government can't hope to lower
interest rates. Higher interest rates in India damp the
government's plan of attracting more foreign companies to set up
businesses locally.

                        Overseas Investment

     ``The most important thing to do is to get more foreign
direct investment, which is the mother of all solutions,'' Shah
said. Last year, India managed to attract $4.5 billion in foreign
investment, a tenth of what China took in.
     India's program to sell state assets, reduce tariffs and
otherwise free the economy from government interference hasn't
moved as fast as expected, Mukherji said.
     ``India has had about 3 years' worth of economic reforms
spread out over the last 10 years,'' he said.
     For example, the government said it planned to raise 120
billion rupees by selling stakes in more than 20 state-run
companies in the fiscal year that began April 1. So far this year,
it hasn't sold a single stake.

                           Privatization

     Privatization minister Arun Shourie said delays in selling
stakes in companies such as national carrier Air India Ltd. and
state-run hotel chain India Tourism Development Corp. were not
unusual and investors need to be patient.
     ``We are proceeding methodically,'' Shourie told reporters at
a news conference late last night. ``Have faith in the process.''
     S&P isn't convinced. If the government's economic program
fails to gather speed, the country may slip to its pre-1990s
growth rate of 3.5 percent a year from an average of more than 7
percent in the 1990s, Mukherji said.
     The dispute between the Maharashtra State Electricity Board
and Enron Corp., the country's biggest foreign investor, which has
set up a $3 billion power plant, is a ``long-term disaster'' and a
``bad, loud and clear signal to potential foreign investors,''
Mukherji said.
     The state electricity board has refused to pay 3 billion
rupees for power supplied by Enron's local unit, Dabhol Power Co.
India hasn't delivered on guarantees to pay for the power. The
dispute is widely seen as a litmus test for foreign investment in
India.
     ``The Indian private sector is used to bad politics and
failed economic policies, such as energy reforms, but the foreign
private sector is not,'' Mukherji said.

--Gautam Chakravorthy in the Mumbai newsroom (91-22) 233-9027 or
at chakravorthy@bloomberg.net, with reporting by Anindya
Mukherjee, Abhay Singh and Arijit Ghosh in New Delhi/clw/pv/nmn


       
California Seeks Cheaper Long-Term Power Contracts, Paper Says
2001-07-05 14:44 (New York)


     Washington, July 5 (Bloomberg) -- California Governor Gray
Davis said the state would consider accepting some of the
$8.9 billion he says energy companies overcharged the state for
electricity in the form of lower rates on long-term contracts, the
San Jose Mercury News reported.
     While the money doesn't have to be paid in cash, it ``has to
net out to $8.9 billion,'' Davis told the paper.
     Energy companies such as Duke Power Corp., Enron Corp. and
Williams Cos. have said their prices were fair, with some saying
the state owes them money. The companies' response to Davis's
offer wasn't clear, the paper said.
     Settlement talks are scheduled to end Monday in Washington,
the paper said. Few details have emerged because the overseeing
judge imposed a gag rule on the discussions.

(San Jose Mercury News 7-3)

See {SJMN <GO>} for the San Jose Mercury News Web site.

--Russell Hubbard in the Princeton newsroom at (609) 279-4131, or
at rhubbard2@bloomberg.net/jjs

Story illustration: See {PMATSPSP <INDEX> GP D <GO>} to graph the
Bloomberg PowerMatch Index of Southern California power prices.


USA: U.S. Cash LPG-Propane firms on bullish crude oil fundamentals.

07/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, July 5 (Reuters) - U.S. cash liquefied petroleum gas (LPG) 
strengthened on bullish crude oil fundamentals early Thursday, traders said. 
Mont Belvieu, Texas propane gained a penny to trade at 35.88 and 36.00 cents 
a gallon, while Conway product traded 0.50 cent higher at 40.50 cents a 
gallon, traders said.
U.S. national crude supplies fell by 4.0 million barrels last week, according 
to the American Petroleum Institute (API), while the Energy Information (EIA) 
reported a bigger draw of 4.8 million barrels. 
Crude oil futures on the New York Mercantile Exchange (NYMEX) were up 58 
cents to $26.82 a barrel midday on the inventory numbers, while weighing the 
effect of Iraq resuming exports, which it stopped a month ago in protest of 
U.N. sanction discussions. 
Meanwhile, natural gas futures fell 8.10 cents go $3.120 per million British 
thermal units (mmBtu) amid stronger cash values. 
Ethanes tracked the strength, with Belvieu purity up 0.50 cent to trade at 
26.50 cents a gallon, and mix up 0.63 cents to trade at 25.63 cents a gallon, 
dealers said. Conway mix talked steady at 24.25/24.88 cents a gallon. 
In Belvieu, normal butane fell a penny to talk at 41.88/42.50 cents a gallon, 
isobutane firmed 0.25 cent to trade at 43.25 cents a gallon, and natural 
gasoline fell 0.50 cent to trade at 51.12 cents a gallon for Dynegy barrels 
and 52.50 cents a gallon for Enron barrels, dealers said. 
No deals were heard on the heavies on Conway. Normal butane talked steady at 
41.50/41.63 cents a gallon, isobutane down a penny at 50.00/51.50 cents a 
gallon and natural gasoline up 0.50 cent to be offered at 53.50 cents a 
gallon, traders said. 
- ((Soo Youn, New York Energy Desk, 646-223-6057, soo.youn@reuters.com)).
ann.schmidt@enron.com