Enron Mentions EOTT Energy Registers 2M Sub Units For Hldr Koch Pete
Dow Jones Corporate Filings Alert 

USA: The Reuters Diary of the Supreme Court.
Reuters Washington Daybook Report 

UK: INTERVIEW-Italian power market long way from taking-off.
Reuters English News Service 


EOTT Energy Registers 2M Sub Units For Hldr Koch Pete

09/28/2001
Dow Jones Corporate Filings Alert 
(Copyright (c) 2001, Dow Jones & Company, Inc.) 

WASHINGTON -(Dow Jones)- EOTT Energy Partners L.P. (EOT) registered 2 
million of its subordinated units for its holder Koch Petroleum Group L.P. 
for conversion into 900,000 common units in the company and an option to buy 
another 1.1 million common units. 

According to a filing Friday with the Securities and Exchange 
Commission, the registration is part of a recapitalization agreement that the 
company, Koch and Enron Corp. (ENE) signed Sept. 6, which still must be 
approved by the company's unitholders. 

Under the registration, Koch may sell all 2 million subordinated 
units prior to approval of the proposed amendment to the company's 
partnership agreement or if the amendment isn't approved. 

As reported, Enron and Koch Petroleum have agreed to convert all 9 
million of their outstanding EOTT Energy subordinated units and $9.2 million 
of additional partnership interests into about 4.3 million common units. 

The company said the shift in capital structure will allow the 
company to increase cash distributions to $1.95 a unit from $1.90. 

Houston-based EOTT Energy is an energy company that gathers and 
markets crude oil and refined products in North America. 

-Joanne McPike, Dow Jones Corporate Filings Alert; 202-628-7669; 
joanne.mcpike@dowjones.com 


USA: The Reuters Diary of the Supreme Court.

09/28/2001
Reuters Washington Daybook Report 
(C) Reuters Limited 2001. 

THE REUTERS DIARY OF THE SUPREME COURT 
The Week of October 1, 2001
Below are cases scheduled for argument before the 
Supreme Court during the current session. Times are approximate. If you have information for the daybook or any questions, please call 202-898-8345 or fax 202-898-8401. For service problems, call 1-800-435-0101. The contact number for the Supreme Court recording is 202-479-3211. The Supreme Court's web site is http://www.supremecourtus.gov. The court is expected to post opinions at noon on the day they are released. 
Wednesday, October 3 
SUPREME COURT 
Beginning at 10 a.m. the Supreme Court hears oral arguments in the following cases: 
New York, et al. versus FERC, et al.; and Enron Power Marketing, Inc. versus FERC. 
Given that Congress in 1935 stated that federal regulation extends "only to those matters which are not subject to regulation by the states" (Section 201(a) of Federal Power Act), and transmission of energy from generators to retail customers in the same state was then "subject to regulation by states" (as it has been since 1935), may FERC preempt state jurisdiction over such intrastate retail transmissions of electric energy? Does FERC have jurisdiction under the Federal Power Act to regulate all transmission of electric energy in interstate commerce, including the interstate transmission of electric energy that is sold to retail customers at "bundled" prices? Did FERC have jurisdiction under the Act to eliminate pervasive "undue discrimination" in the provision of interstate electric energy transmission services by requiring transmission-owning utilities to provide interstate transmission services on the same terms to all users, for all interstate transmissions, including transmissions bundled with retail sales? Did the appeals court err in ruling that FERC had discretion to interpret the Act as denying FERC the necessary jurisdiction to remedy undue discrimination it had found in the provision of interstate transmission? 

UK: INTERVIEW-Italian power market long way from taking-off.
By Dominique Magada

09/28/2001
Reuters English News Service 
(C) Reuters Limited 2001. 

LONDON, Sept 28 (Reuters) - Electricity trading in Italy is still facing too many difficulties for a liquid market to take off, said Fabio Leoncini, President of the Italian Energy Traders Association, AIGET. 
"There are a few bilateral contracts traded occasionally, but the market is still in a very premature phase," he told Reuters in an interview on Friday.
One of the main problems, he said, was that demand for electricity in Italy was far higher than supply, and production from independent generators very limited. 
"Because of that, it is very hard to guarantee supplies and develop a liquid market," said Leoncini. 
Demand from consumers free to choose their supplier is estimated at 100 terawatt hours (TWh) per year, but only a quarter of that comes from independent sources, most of the remainder being supplied by former monopoly ENEL. 
"Out of these 25 TWh, 20 TWh are covered by electricity imports and the rest is generated by independent producers. So the proportion of power available is very small," he said. 
In addition, construction of new generation capacity was being held up by lengthy administrative authorisation process. 
New entrants currently present in the Italian market included U.S. trading firm Enron Corp, German utility E.ON, Spanish Endesa, U.S. utility TXU as well as newly formed Italian trading companies. 
"Some of the well-known traders are doing about five transactions a month and the volume varies a lot, so it's difficult to get a clear idea of volume traded," said Leoncini. 
He added that all transactions were over-the-counter bilateral contracts for the supply of physical electricity. 
LACK OF IMPORT CAPACITY LEADING TO HIGHER PRICES 
Electricity imports themselves were difficult to secure because of restricted interconnection capacity at the northern border, the main import point into Italy. 
"The only way to get electricity into Italy is to secure cross-border capacity, so competition is intense leading to high prices," said Leoncini. 
He added that high capacity prices added to already high baseload electricity prices in Italy. 
"Last year, we've seen capacity prices as high as 15 euros per megawatt hours (MWh). As a result, Italian wholesale prices remain very high compared to the rest of Europe," he said. 
Italian baseload electricity prices themselves averaged 30 to 35 euros per megawatt hour (MWh), compared to prices between 20 and 25 euros/MWh in the German wholesale market. 
CAPACITY SALE STILL AN ISSUE 
The system to sell cross-border capacity has been a bone of contention in Italy, with the regulator opting last year for an auction system that was then annulled by the Milan administrative court in favour of a pro-rata system. 
More recently, both Italian and French grid operators who manage the interconnections have agreed on a new auction system. 
"As AIGET we prefer by far an auction system, which is more transparent, but such a system could still be contested in court," said Leoncini. 
He added that it was equally important to gain access to other countries' grid once cross-border capacity was secured. 
"It's no longer an issue in France because the management of the grid is separate from the ownership. But that's not the case in Switzerland and Slovenia where access can sometimes be a problem," he said. 
Switzerland and Slovenia, which are outside the EU, are not subject to the electricity liberalisation directive requiring unbundling of transport and supply activities. 
Cross-border capacity in northern Italy amounts to about 6,000 megawatts (MW), but grid operator GRTN recently said it had plans to increase it to 10,000 MW in the next few years. 
POWER BOURSE TO BOOST MARKET LIQUIDITY 
Leoncini also said that traders were hoping that the new Italian power bourse to be launched early next year, a year behind schedule, would boost liquidity in the market. 
"We would have preferred a compulsory pool system, but that won't be the case," he said, adding that the bourse would still bring transparency to the market. 
The exchange will initially launch a physical day ahead contract as well as a balancing and adjustment markets.

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