Message-ID: <10185913.1075845460333.JavaMail.evans@thyme>
Date: Mon, 9 Apr 2001 01:25:00 -0700 (PDT)
From: benjamin.morton@ssmb.com
Subject: Bankruptcy in California; Implications for our Growth Energy Name	s
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Bankruptcy in California; Implications for our Growth Energy Names

* We would not sell Energy Merchants/Power Producers on news that PCG
has declared Chapter 11 bankruptcy.
* Ongoing payments in California are being made by the state;
therefore do not anticipate material exposure for ongoing earnings.
* Primary exposure is current receivables: (1) these one-time amounts
are limited (roughly estimate max. of 50% of 2001 earnings); and (2) we
expect that, as trade creditors, they will get high priority in a bankruptcy
proceeding. We think most of these amounts are likely to be recoverable,
although a significant (perhaps several year) delay is possible as these
claimants work their way through the bankruptcy process.
* By our rough estimation, companies with fairly significant one-time
earnings exposure include:  NRG, MIR, DYN, CPN.  Companies with fairly small
exposure include:  ENE, AES, WMB, EPG and DUK.

 <<PCG bankruptcy 4-9-01.pdf>>  <<PCG bankruptcy 4-9-01.doc>>

Raymond C. Niles
Power/Natural Gas Research
Salomon Smith Barney
(212) 816-2807
ray.niles@ssmb.com

s


 - PCG bankruptcy 4-9-01.pdf
 - PCG bankruptcy 4-9-01.doc