For the first Update of 2002, we bring you a Case Study (first published in
erivativesreview.com) of how a hypothetical power distribution company was
able to protect itself against weather-related variable earnings by the use
of weather risk analysis and hedge transactions.  This is a very interesting
article which, although based on the concept of weather risk for an energy
company, could be equally relevant to a huge number of industries.  Scroll
down a little for the link to the full story...

Also, if you are or are likely to be involved in weather trading or indeed
any form of risk management, you might like to check out what will be going
on at our upcoming conferences, taking place in Amsterdam in February.  More
details are available further down in this Update...

And finally, of course, all of us at Eyeforenergy wish our readers a very
Happy New Year and hope that it will be a prosperous and gratifying one for
all of you!

Bruno Russell
bruno@eyeforenergy.com


CONTENTS:

   -  ARTICLE: Weather Hedging At The Hot Air Gas Company
               (based on a true story of weather hedging)

   -  EVENTS RUNDOWN

   -  RECENT HEADLINES


ARTICLE: Weather Hedging At The Hot Air Gas Company
         (based on a true story of weather hedging)

The Hot Air Gas Company rises in a warm winter - based on a true story of
weather hedging...

The Hot Air Gas Company (HAGC) distributes gas to homes and commercial sites
in Canada, just across the border from the US city of Frozen Falls. In these
northern latitudes, the normally cold winters generate strong sales for the
company. However, the company, because it has weather sensitive revenue, has
a natural "weather bet". Through the warm winters of 1997-1998, 1998-1999
and 1999-2000 for example, the company struggled against declining sales and
weak revenues, and lost the bet. The winter of 2000-2001 was different: it
was so much colder than the long-term average of weather, that the company's
revenue was quite good - that is, the company won the bet....
Read the full article here:
http://www.eyeforenergy.com/content.asp?news=24222


EVENTS RUNDOWN

* EEO Europe: Energy Trading in the New Economy
  Amsterdam, 19-21 February 2002

Following up for our sell-out conference in Phoenix, December 2001 that was
attended by over 250 CEO's, senior executives and press, and Energy
Exchanges Online II:  Energy Trading in the New Economy USA (September
2001), Eyeforenergy brings you the premier networking and discussion
conference for the energy trading community.  Meet, do business and discuss
the big issues over 2 days with the leaders in energy trading in Amsterdam.

To find out more information, including discounts for pre-registration,
speaking, sponsoring and exhibiting opportunities, click here:
http://www.eyeforenergy.com/eurotrading/


* Emissions Trading 2002
  Okura Hotel, Amsterdam, 19-21 February 2002

Emissions trading options are ripe for the picking - so how can you make
sure you're ready to profit from GHG?  Let's face it - you can't really
afford not to be, especially as the World Bank has estimated demand in the
international GHG trading system to be in the order of US$20 billion per
annum by 2010.

Eyeforenergy is delighted to bring you this event which will focus on how
you can best seize this exciting new market opportunity.  As ever, the
conference will be driven by the industry leaders in this arena, backed up
by expert advice from those helping the indsutry make the right moves in
emissions.

Click here for further information:
http://www.eyeforenergy.com/emissions/


* Weather Trading 2002
  Okura Hotel, Amsterdam, 19-21 February 2002

Today's business is all about risk and how to mitigate it. Weather
derivatives has become one of the key tools industries as wide ranging at
utilities, airlines, and agriculture have at hand to off-set risks
associated with temperature and precipitation.  With over 70% of Europe's
companies facing weather-related risk, knowing about the latest advances in
weather trading is a necessity.

Eyeforenergy's latest event will be run in conjunction with our European
online trading conference, Energy Trading in the New Economy, and
Eyeforenergy's Emissions Trading 2002 event, so you can learn about the
latest developments in energy and emissions trading all under one roof.

Click here for further information:
http://www.eyeforenergy.com/weather/


* The Business of Fuel Cells for Transportation
  Dearborn Hotel, Detroit, Michigan
  April 30 - May 1, 2002

As manufacturers are increasingly developing technologies with the energy
industry, the auto industry is globalising at an unprecedented rate and both
OEMs and suppliers are renegotiating their alternative vehicle programs.
This event will examine all possible applications in teh transport industry
including synergies with hybrid automobiles and the potentially lucrative
APU market.

Fueling infrastructure will also be covered and, with BP recently launching
Hydrogen fueling stations in Singapore, this issure could not be more timely
or pertinent.  If you have a story to tell, a product to promote or would
simply like to get the full lowdown on the movers and shakers in the
industry then, if you're not already in Detroit, you'll certainly want to be
there in April 2002.

For more information, please visit:
http://www.eyeforfuelcells.com/


LATEST HEADLINES

PacifiCorp Changes Horses on Priest Rapids Hydroelectric Project
http://www.eyeforenergy.com/content.asp?news=24216

Texas Ready for Deregulation; PUC Puts Stamp of Approval on State Plans
http://www.eyeforenergy.com/content.asp?news=24194

TXU Taps Into Enron's West Texas Wind
http://www.eyeforenergy.com/content.asp?news=24193

Brazil's Aneel Taps Into 23 More Wind Projects
http://www.eyeforenergy.com/content.asp?news=24168


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