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The Atlanta Constitution, 02/15/2001 State Sees $2.3 Billion Tab for Emergency Buys San Diego Union-Tribune, 02/15/2001 Deals & Deal Makers: First Boston's `Son of Tyco' Deal Goes Sour ---=20 Underwriter Left Holding A Bagful of Unsold Bonds The Wall Street Journal, 02/15/2001 Envera Becomes Preferred Settlement Network for Enron Global Markets'=20 Petrochemical Transactions PR Newswire, 02/15/2001 LME to Continue with Longer Open-outcry Hours Reuters, 02/15/2001 Nigeria Races Against Time to End Power Outages Reuters, 02/15/2001 Team Canada Assists China's Power Monopolists=20 Financial Post - Canada, 02/15/2001 US Marathon Oil Mum On Reported Enron India Assets Buy Dow Jones, 02/15/2001 State Agrees to Widen Scope of Enron Review Committee The Economic Times, 02/15/2001 Indian Newspaper Highlights=20 Asia Pulse, 02/15/2001 India: For a Dabhol Relief Fund? Business Line (The Hindu), 02/15/2001 Enron Saga: Power of Political Will on Test The Times of India, 02/15/2001 Making the Power Sector Viable The Hindu, 02/15/2001 Prabhu Stresses Supply Reforms Business Standard, 02/15/2001 =20 Apps off the Shack Computers Today, 02/15/2001 =20 National Award From The Points of Light Foundation Honors Six Companies=20 Dedicated to Community Service PR Newswire, 02/15/2001 Lawsuits Pending in the Wake of State's Energy Crisis Associated Press Newswires, 02/14/2001 =20 Power Crisis Was Long in the Making: California Deregulation Just Hastened= =20 Reckoning Seattle Post-Intelligencer, 02/14/2001 =20 Letters Page Denver Rocky Mountain News, 02/14/2001 =20 Catholic Health East signs energy supply contract Times Union Albany, 02/14/2001 =20 Rentable Storage: Efficient But Risky CMP TechWeb, 02/14/2001 3 Members Keep Off First Enron Panel Meet The Indian Express, 02/14/2001 Letters to the Editor: A Contradiction? The Statesman, 02/14/2001 Letters to the Editor: A test of principles and being practical The Statesman, 02/14/2001 Regulator Authorizes Enron and British Gas to Use Brazil-Bolivia Gas Pipeli= ne=20 Gazeta Mercantil, 02/14/2001 Studios Release Movies for Internet Reuters, 02/14/2001 Video Store No More? TheStandard.com, 02/14/2001 Stonepath Group to Sell Interest in Intermodal Business To Enron Global=20 Markets PR Newswire, 02/14/2001 ---------------------------------------------------------------------------= --- -------------------------------------- Business DAILY BRIEFING STAFF REPORTS AND NEWS SERVICES 02/15/2001 The Atlanta Constitution=20 Home G; 2 (Copyright, The Atlanta Journal and Constitution - 2001)=20 UTILITIES/ENERGY: Enron says it can help California power woes=20 Enron, the largest energy trader, has turbines that could be used in new=20 California power plants if the state gives generators incentives to relieve= =20 an electricity shortage there, Chairman Kenneth Lay said. California Gov.= =20 Gray Davis wants to boost the state's generating capacity by 5,000 megawatt= s,=20 enough to light 5 million homes, by July.=20 =20 --- Staff, Associated Press, Bloomberg News, Dow Jones News Service, Wall= =20 Street Journal State sees $2.3 billion tab for emergency buys San Diego Union-Tribune=20 By Ed Mendel=20 UNION-TRIBUNE STAFF WRITER=20 February 15, 2001=20 SACRAMENTO -- The amount the state expects to spend on emergency power has= =20 soared to $2.3 billion and may continue to grow for weeks or months.=20 A request for an additional $500 million last week was quickly followed by = a=20 request for another $500 million this week, in part because the state has= =20 begun buying power for San Diego Gas & Electric.=20 The emergency purchases began Jan. 17 when Gov. Gray Davis declared an=20 emergency because suppliers would no longer sell power to two nearly bankru= pt=20 utilities, Pacific Gas and Electric and Southern California Edison.=20 The state is buying power on the expensive spot market while struggling to= =20 negotiate a portfolio of long-term contracts that are expected to sharply= =20 reduce costs.=20 Davis said yesterday that more long-term contracts could be announced this= =20 week. But the state does not want to obtain all of its long-term contracts= =20 immediately, because prices could go down later.=20 Meanwhile, the governor said he hopes that an agreement on a plan to begin= =20 paying off the $13 billion debt of the utilities, in exchange for their=20 transmission systems and other assets, will calm the market.=20 The governor intends to reach an agreement with legislative leaders on a=20 debt-relief plan that can be presented to the utilities tomorrow, setting t= he=20 stage for several weeks of negotiations.=20 "As soon as the utilities indicate their assent to this plan -- or some=20 modified version we can assent to -- everything will begin to stabilize and= =20 calm down," Davis said.=20 "There is no question when there is uncertainty it affects prices, and we= =20 want to create the opposite -- some certainty, predictability -- in what I= =20 like to call a challenge," Davis told reporters, "and you guys call a=20 crisis."=20 The governor said that state purchase of the transmission systems will be t= he=20 biggest part of the proposal tomorrow. Other assets that have been mentione= d=20 are stock options, scenic land around hydroelectric facilities, and payment= s=20 from utility parent firms.=20 The state is not revealing the price of its power purchases, arguing that= =20 would prevent lower-priced bids from suppliers in the future. Davis said he= =20 hopes to have a secrecy period of less than six months and may announce a= =20 schedule in two or three weeks.=20 "But I definitely do not want to jeopardize the integrity of the secret bid= =20 prices," he said. "Because if we do that, we are just going to force=20 Californians to pay more for power than they would otherwise."=20 An official of the state Department of Water Resources, which owns=20 hydroelectric facilities and is purchasing power for the state, estimated= =20 last month that the state was paying $45 million a day for power.=20 The governor's emergency order last month authorized the state to dip into= =20 $440 million in Water Resources funds. The Legislature quickly appropriated= =20 $400 million for additional power purchases, and included $500 million in t= he=20 bill authorizing long-term contracts.=20 But Feb. 5, the state Department of Finance sent the Legislature a=20 "deficiency"=20 notice saying it intended to begin spending an additional $500 million to b= uy=20 power in 10 days, unless the Legislature objected.=20 The department issued another notice this week saying yet another $500=20 million will be required because all of the previous funding is expected to= =20 be exhausted by Feb. 23.=20 "This is somewhat sooner than had earlier been anticipated due to colder=20 weather and the inclusion of electricity purchases for the San Diego Gas &= =20 Electric service area," said the notice issued Tuesday.=20 The long-term contracting legislation signed early this month by Davis made= =20 SDG&E eligible for the state purchases. SDG&E is in better financial=20 condition than PG&E and Edison, but has a debt of more than $500 million.= =20 All three utilities are the victims of a failed deregulation plan: The rate= s=20 they can charge customers are capped (in SDG&E's case by legislation after= =20 bills doubled last summer) while the wholesale cost of power soared,=20 producing huge debts.=20 The long-term contracting legislation authorizes the state to issue $10=20 billion or more in bonds to spread the cost of the power purchases over a= =20 period of years in an attempt to avoid a rate increase.=20 The bonds will be paid off by ratepayers through a monthly charge on their= =20 bill. Money from the bonds also will be used to repay Water Resources and t= he=20 state general fund for the purchases made on the spot market.=20 In comparison, the $2.3 billion that the state expects to spend on power=20 purchases so far is equal to the reserve in the $104.7 billion state budget= =20 proposed for next fiscal year. It is more than the total amount of money=20 earmarked for the state's mental health programs.=20 State Treasurer Phil Angelides told reporters last week that the $10 billio= n=20 bond issue will not be ready until May. He said if interim financing throug= h=20 short-term notes is too expensive, the state has $9 billion in cash reserve= s.=20 Angelides said that the long-term contracts must be obtained before the bon= ds=20 can be issued. He said the average price of the contracts will determine th= e=20 total amount needed for the bond issue, which could exceed $10 billion.=20 The governor spoke yesterday while revealing more details of his plan to=20 boost power generation in California by 5,000 megawatts to avoid blackouts= =20 this summer, when air-conditioning drives up the demand for electricity.=20 He is proposing legislation that would provide rebates to companies that=20 install small business generators of less than 10 kilowatts, a 50 percent t= ax=20 credit for generators between 10 and 200 kilowatts, and $50 million for=20 co-generation, wind and solar programs.=20 "We are in for a struggle this summer," Davis said. "It will test our=20 resolve. But I am convinced if we all do our part, we will get through this= =20 summer without major disruptions."=20 Jeffrey Skilling, chief executive officer of Enron, the nation's largest=20 electricity trader, said electricity costs would go down when significant= =20 progress occurs in planning power plants.=20 "Faster siting will cause the forward price of electricity to drop below $5= 0=20 a megawatt," Skilling said yesterday at an electric industry conference in= =20 Houston. In retail terms, that is 5 cents a kilowatt.=20 Yesterday was California's 30th straight day in a Stage 3 power alert. Grid= =20 operators struggled to meet demand by making last-minute power purchases fr= om=20 the Northwest.=20 "We came close this morning (to blackouts) but it got better by the hour,"= =20 said Patrick Dorinson, spokesman for the state Independent System Operator.= =20 "It was touch and go."=20 ISO managers had worried they might not meet demand because of the forced= =20 shutdown of power plants capable of producing 10,400 megawatts -- 400=20 megawatts more than the day before. Officials said the plants were taken of= f=20 line for repair work.=20 Dorinson said he could not predict how long the state would remain on Stage= 3=20 alert.=20 "It is the same situation. I feel like Bill Murray," he said, referring to= =20 the star of the movie "Groundhog Day," whose character keeps reliving the= =20 same day.=20 Deals & Deal Makers: First Boston's `Son of Tyco' Deal Goes Sour ---=20 Underwriter Left Holding A Bagful of Unsold Bonds By Suzanne McGee Staff Reporter of The Wall Street Journal 02/15/2001 The Wall Street Journal C1 (Copyright © 2001, Dow Jones & Company, Inc.) Credit Suisse First Boston is finding there may be too much of a good thing= .=20 The big New York investment bank apparently scored a coup last week when it= =20 was chosen as underwriter to sell $2.25 billion of convertible bonds for=20 conglomerate Tyco International, a deal that CSFB might have expected to=20 produce big fees and give the firm a leg up on the widely watched "league= =20 tables" that rank Wall Street underwriters. . . . "The market has been flooded with these deals, even as the frustration on t= he=20 part of investors has grown," Mr. Cunningham says. "And the new issue marke= t=20 has been so, so active that everyone's trying to digest what's out there."= =20 --- Hitting the Rocks? Rumors swirl that underwriters of several big convertible issues weren't ab= le=20 to sell everything, and still carry some of the securities on their books. . . . Underwriter: Salomon Smith Barney Company: Enron Size: $1.25 billion Date: Feb. 5 Took the still-unusual step of buying some of the issue in the aftermarket = as=20 "stabilization", sparking rumors it still owned the issue. Source: WSJ Research Envera Becomes Preferred Settlement Network for Enron Global Markets'=20 Petrochemical Transactions 02/15/2001 PR Newswire (Copyright © 2001, PR Newswire) RICHMOND, Va., Feb. 15 /PRNewswire/ -- Envera(TM) announced today that Enro= n=20 Global Markets LLC has become its newest equity participant and trading=20 member. Envera is a leading global electronic network for chemical and=20 petrochemical industry B2B transactions and services.=20 Enron Global Markets will connect its petrochemicals, natural gas liquids a= nd=20 plastics systems to the Envera network. Additionally, Envera will become th= e=20 Preferred Settlement Network for members' petrochemical transactions with= =20 Enron Global Markets. Envera members also will have access to Enron's world= -=20 class product and service offerings. "We welcome Enron as a member of Envera," stated Bob Mooney, Envera's CEO.= =20 "As our newest member, Enron extends Envera's value proposition by opening = up=20 to Enron's trading verticals, including new industries such as oil and gas,= =20 petrochemicals and plastics to Envera's trading members. Furthermore, our= =20 members have enhanced access to Enron's many services, continuing Envera's= =20 "Business FOR Business" (eB4B)(TM) strengths."=20 ABOUT ENVERA=20 Envera is a trusted e-business solutions provider that improves members'=20 supply-chain communications and fosters business growth in the chemical and= =20 petroleum industries. Envera's initial equity and trading partners include:= =20 Albemarle Corporation (NYSE: ALB); Borden Chemical, Inc; Enron Global Marke= ts=20 group of Enron (NYSE: ENE) Equistar; Ethyl Corporation (NYSE: EY); Lubrizol= =20 (NYSE: LZ); Lyondell Chemical Co. (NYSE: LYO); Mays Chemical; Occidental=20 Chemical Corporation (NYSE: OXY); Phenolchemie; and Solutia (NYSE: SOI).=20 Visit Envera via its Web site at www.envera.com or call 1-888-ENVERA1. /CONTACT: Richard J. Chvala of Envera, 804-788-5667 or rchvala@envera.com o= r=20 Douglas Friedman of Enron, 713-853-7377 or Douglas.S.Friedman@enron.com/=20 06:01 EST=20 LME to continue with longer open-outcry hours By Martin Hayes=20 LONDON, Feb 15 (Reuters) - The London Metal Exchange (LME), the world's=20 largest non-ferrous metals market, said on Thursday an experimental extensi= on=20 to its open-outcry hours would continue.=20 ``The board looked at a whole range of issues at its (February) meeting...I= t=20 decided that this aspect should continue, but will be kept under review,''= =20 LME Director of Corporate Affairs Jonathan Haslam said.=20 In a move that bucked the inexorable trend in European markets away from=20 floors and towards electronic trading platforms, the LME last October=20 introduced a trial 1330-1510 GMT extension to its open-outcry trading hours= .=20 Before then, there had been a break at the end of the morning session when= =20 the floor was closed. Now LME open-outcry trading hours run from 1140 to 17= 00=20 continously.=20 LME Select, the exchange's screen trading system which was launched on=20 February 9, operates from 0730 to 1930, with the exception of a 45-minute= =20 closure between 1230 and 1315, when the second official rings take place.= =20 Traders from the LME's 12 ring-dealing members (RDMs), who are entitled to= =20 trade during the open-outcry sessions, said more activity has been seen=20 during the first part of the extended period.=20 ``The guys on the floor have got accustomed to it now, and are doing more= =20 business than they previously would have,'' one floor trader said.=20 Others said the bulk of trade was seen after 1330, with business slackening= =20 after some 45 minutes, only to pick up from 1510 onwards when the customary= =20 afternoon rings take place.=20 ``There is a bit of a dead zone between 1415 and 1515...but the longer it= =20 (the floor) is open, the better it is for the survival of the ring,'' anoth= er=20 senior trader said.=20 EVEN LONGER HOURS UNLIKELY=20 Last month traders from the RDMs mooted the idea of even longer trading hou= rs=20 -- with some seeking to begin daily floor trading from as early as 0900 GMT= ,=20 ending as now at 1700 GMT.=20 ``It (the board) looked at this situation in the light of a great deal of= =20 change that is taking place....We continue to review the whole of the=20 operation,'' Haslam said.=20 As well as introducing an electronic trading platform to run alongside but= =20 not replace open-outcry trading and the inter-office telephone market, the= =20 LME also demutualised late in 2000 and reconstituted its board.=20 Traders said another extension was unlikely as there was no unanimity among= =20 the 12 RDMs. Also, such a move would meet opposition from the LME's 27=20 associate broker clearing members (ABCMs). These companies have all the=20 rights of LME membership, but cannot trade during the open-outcry sessions.= =20 Then they largely become customers of the market and trade through the RDMs= .=20 ``The current extension means that they (ABCMs) have lost a lot of their=20 pricing power over lunch,'' one said.=20 The RDMs are fighting the advance of electronic trading to maintain=20 traditional open-outcry trade, which has all but disappeared from European= =20 markets -- only London's International Petroleum Exchange (IPE) still=20 operates a floor.=20 As well as LME Select, rival systems managed by Spectron Metals and Enron Online, part of Enron Corp (NYSE:ENE - news), also operate and capture=20 business.=20 Nigeria races against time to end power outages By Mike Oduniyi=20 EGBIN, Nigeria, Feb 15 (Reuters) - The rumble of pneumatic drills echoes=20 through the jungle surrounding this rustic village on the outskirts of=20 Nigeria's biggest city, Lagos.=20 Scores of workmen in orange overalls and youths from villages close to=20 Nigeria's power complex at Egbin dig frantically in a race against time to= =20 complete the country's most eagerly awaited electricity project.=20 After prolonged squabbling between Lagos State and the federal authorities= =20 over regulatory issues, the U.S. energy group Enron (NYSE:ENE - news) is=20 finally pushing ahead with the first major private initiative to help end= =20 Nigeria's chronic energy crisis.=20 Enron has the task of providing 270 megawatts (MW) of emergency electricity= =20 to Lagos by the end of February after a botched earlier plan to start=20 producing from last December.=20 ``We are working hard to meet the February deadline,'' said Adeola Taiwo, a= =20 worker at the site.=20 Decades of mismanagement by military rulers have left Nigeria, Africa's top= =20 crude oil producer, with a long running scarcity of both electricity and=20 refined petroleum products that has paralysed everything from private homes= =20 to industry.=20 ``The economy is at the mercy of the erratic electricity supply,'' said=20 Adekunle Olumide, head of the Lagos Chamber of Commerce and Industry.=20 Production costs had soared by 25 percent because companies needed to insta= ll=20 their own generating plants, he told Reuters.=20 El-Tayeb Ibrahim, an official of the Nigerian Manufacturers Association, sa= id=20 the energy problem had forced the closure of about 130 companies in norther= n=20 Kano State in the past six months.=20 STATE MONOPOLY A FAILURE=20 The state power monopoly, the National Electric Power Authority (NEPA) has= =20 become a by-word for inefficiency in Nigeria where some households can be= =20 without electricity for months.=20 The $800 million Enron project is the initiative of Governor Bola Tinubu,= =20 whose territory covers the sprawling metropolis of Lagos, with a population= =20 of more than 10 million inhabitants.=20 NEPA now produces just over half the 4,000 MW which it estimates is the=20 minimum Nigeria needs. Some 40 percent of that is consumed by Lagos, the=20 country's industrial hub in the southwest.=20 The most visible part of the work involves laying a 10-km (six-mile) stretc= h=20 of pipeline that will collect natural gas from a station in the Ikorodu=20 district of Lagos state to fire Enron's barge-mounted electricity generatin= g=20 plants anchored at a small jetty near Egbin.=20 Also in full steam are contracts awarded by the federal government to fulfi= l=20 President Olusegun Obasanjo's pledge to end power outages nationwide by=20 December this year.=20 After two countrywide blackouts early last year, an angry Obasanjo went on= =20 state television to apologise to the nation. He sacked NEPA's management an= d=20 took direct charge of plans to boost electricity supply.=20 Obasanjo, who was elected in May 1999 at the end of 15 years of military=20 rule, faces re-election in 2003. Many Nigerians believe his chances depend= =20 largely on how he delivers on his promise of uninterrupted power supply.=20 Close to the Enron site lies Nigeria's biggest power station, the Lagos=20 Thermal Power Station at Egbin. NEPA workers have been clearing sites there= =20 for equipment due to be shipped in by the Japanese engineering firm Maruben= i.=20 The company won the federal contract to overhaul two Egbin generating units= =20 of 220 MW capacity each in the thermal plant.=20 Similar projects are in progress to refurbish rusty generating plants=20 neglected by ruling generals.=20 TOUGH TASK=20 Obasanjo has set NEPA the tough target of raising electricity output to 4,0= 00=20 MW by the end of this year.=20 ``It is not going to be easy, but we are achieving this target by end of th= is=20 year,'' said NEPA spokesman Mohammed Mousa-Booth.=20 Electricity generation reached a new record peak of 2,600 MW in the first= =20 week of January, he said. The previous highest level of 2,460 MW was last= =20 attained in 1996.=20 Other international companies involved in Nigeria's electricity programme= =20 include Germany's Siemens , which is constructing a 276 MW thermal power=20 plant, and Italy's oil giant Agip which is to build and operate a 450 MW=20 gas-fired power plant.=20 The government has also given its approval in principle for the U.S. oil=20 major ExxonMobil (NYSE:XOM - news) to build and operate a 350 MW thermal=20 plant.=20 While the ExxonMobil and Agip projects are long-term, NEPA is hoping to=20 quickly add 1,226 MW to its present output by September this year.=20 The government has backed the power programme with a massive 51 billion nai= ra=20 ($460 million) allocation in the 2001 budget which helped push up the overa= ll=20 capital budget significantly.=20 ($ equals 110.8 naira)=20 Team Canada assists China's power monopolists=20 Financial Post - Canada; Feb 15, 2001 BY GRAINNE RYDER Team Canada's host in China, Premier Zhu Rongji, has performed miracles in= =20 restructuring much of China's debt-ridden state sector. Burdened with=20 hundreds of thousands of decrepit state companies that could neither repay= =20 their debts nor create new jobs, Mr. Zhu shut down thousands of money-losin= g=20 coal mines, textile factories, and steel works, slashing 12 million jobs in= =20 the last three years. He gave the military five months to divest its busine= ss=20 empire of trading companies, luxury hotels, and nightclubs. He granted citi= es=20 greater autonomy to run their own affairs -- a move credited with improving= =20 the country's investment climate and providing new incentives for=20 environmental cleanup. The Far Eastern Economic Review describes his reform= s=20 as "the largest transfer of industrial property since Mao Zedong nationaliz= ed=20 industry in the 1950s."=20 But Mr. Zhu's plans to bring competition to the last big holdout of the=20 monopolists -- China's power industry -- have stalled. China's old guard ha= s=20 decided to make its stand for central rule in the power sector and it has= =20 found an important Western ally: Canada.=20 Under Mr. Zhu's plans, the power industry would no longer be run as a=20 monopoly. State power companies operating hydro dams and nuclear stations= =20 would have to compete with private power companies for access to customers.= =20 Consumers would need to pay for transmission costs as well as generation=20 costs, giving local power producers -- who don't need to ship power a great= =20 distance -- a major cost advantage over distant suppliers.=20 If Mr. Zhu and his reformers succeed in implementing this plan, China's=20 multi-billion dollar hydro and nuclear empires -- long subsidized by Canadi= an=20 taxpayers -- could face bankruptcy. Even without these reforms being fully= =20 implemented, the state power industry, a bastion of central planning, knows= =20 that it cannot find willing customers for power from its hydro dams and=20 nuclear plants.=20 Chinese officials now openly doubt whether the Three Gorges dam, backed by= =20 Canada's Export Development Corporation, will be able to sell all its outpu= t=20 when it starts generating power in 2003. The provinces and cities slated to= =20 buy its power either already have enough power, or they prefer to have the= =20 private sector build local power plants to meet future demand.=20 Other large government-run hydro projects face the same predicament. The=20 US$3.5-billion Ertan dam, built with Canadian grants and World Bank loans,= =20 has run at an annual loss of US$120-million since it came online in 1998. I= t,=20 too, can't find enough customers. Its largest prospective customer, Chongqi= ng=20 municipality, balked at buying its overpriced power. The newly built=20 US$4-billion Xiaolangdi dam, again backed by Canada and the World Bank, can= 't=20 find customers either. As the retired deputy general manager of the Three= =20 Gorges Project Corporation recently explained to China Business Times,=20 provincial governments and municipalities favour local power plants over th= e=20 central government's distant hydro dams because local plants produce=20 lower-cost power and, when they're privately owned, generate local tax=20 revenue.=20 Under pressure from residents who are tasting democracy and making=20 environmental demands, cities are also switching from coal to cleaner-burni= ng=20 gas -- but rarely with the help of Canada. The city of Lanzhou, on the Worl= d=20 Health Organization's list of the world's 10 worst-polluted cities, is=20 working with Siemens of Germany to co-finance and retrofit its existing coa= l=20 plant with gas turbines and to build a new gas-fired plant. Hangzhou city,= =20 with Japanese financing, is building a 100-megawatt, gas-fired co-generatio= n=20 plant that will save 200,000 tons of coal a year and eliminate dozens of th= e=20 city's inefficient industrial boilers. Already, five major Chinese cities= =20 have built their own natural gas networks to promote private investment in= =20 gas-fired power plants.=20 While Canada partners with China's aging monopolists to push outdated,=20 money-losing technologies -- Team Canada is expected to announce another=20 Three Gorges Dam contract today -- China's newly privatized power companies= =20 are mostly turning to U.S. and European energy know-how.=20 "Gas is the quickest way to get a turnaround in pollution levels," says Bri= an=20 Anderson, chairman of Shell Companies, Northeast Asia, who saw China's citi= es=20 begin the switch from coal to gas in 1998. With only 2% of China's energy= =20 needs currently met by gas (coal still provides 70%), there is plenty of ro= om=20 for growth. Last year, China's State Council approved construction of a=20 US$12-billion, 4,200-kilometre gas pipeline from Xinjiang to Shanghai,=20 expected to be built in partnership with Enron and BP Amoco. Royal=20 Dutch/Shell Group is investing US$3-billion in gas pipelines and power plan= ts=20 to serve Beijing and neighboring cities.=20 In the coastal province of Guangdong, where electricity demand has grown=20 rapidly over the last decade, Swiss-giant ABB has built several=20 combined-cycle plants, running them on alternate fuels (diesel, blast furna= ce=20 gas) until natural gas comes online. An advanced ABB combined-cycle plant= =20 supplies electricity and steam to China's largest steelmaker, the=20 newly-privatized Bao Shan Steel Corporation. Shakou Power Plant Company now= =20 supplies electricity to Foshan city using a 280-megawatt oil-fired=20 combined-cycle plant financed by Hong Kong banks.=20 Knowing that large hydro, coal and nuclear cannot compete with this new bre= ed=20 of cleaner and lower-cost power producer, the central monopolists are=20 fighting back. To prop up the uneconomic nuclear plants that Canada and=20 China's domestic nuclear industry are providing, China's State Council not= =20 only provides a host of subsidies, it wants to force large power consumers = to=20 buy nuclear power. To prop up the Three Gorges project -- a pariah that no= =20 western government would touch before Canada endorsed it with subsidies on = a=20 previous Team Canada mission -- the State Economic and Trade Commission=20 announced that provincial and city authorities will have to buy electricity= =20 from the Three Gorges dam once it starts generating electricity in 2003. At= =20 the same time, the government is shutting down small power plants, ostensib= ly=20 for environmental reasons, and forbidding electricity distribution=20 authorities in areas served by large hydro dams to buy power from private= =20 suppliers.=20 But these successes by the old guard at subverting markets are exceptions.= =20 Apart from Canada, the power monopolists have few friends. Should the power= =20 monopolists lose their grip to Mr. Zhu -- as have other monopolists in=20 China's economy -- Canada's power industry may find it has few friends in= =20 China.=20 Thursday, February 15=20 US Marathon Oil Mum On Reported Enron India Assets Buy SINGAPORE (Dow Jones)--U.S.-based Marathon Oil & Gas Co. declined to commen= t=20 late Wednesday on Indian press reports saying it has submitted a bid for=20 Enron Corp.'s (ENE) upstream Indian oil and gas assets.=20 Quoting unnamed industry sources, the Financial Express reported Tuesday th= at=20 Marathon had emerged as one of the strong contenders for picking up Enron's= =20 30% stake in the Mukta, Panna and Tapti oil and gas fields.=20 "Top industry sources disclosed that Marathon has also been shortlisted in= =20 the first round of bidding along with Reliance (Reliance Petroleum Ltd.=20 (R.RPT)) and ONGC (Oil & Natural Gas Co. (P.ONG)) for buying Enron's stake = in=20 these fields," the Financial Express reported.=20 Asked to comment on the report, Roger Holliday, Marathon's director of publ= ic=20 affairs told Dow Jones Newswires that "it is not company practice to respon= d=20 to speculation in the media."=20 Enron said last year it was considering selling its oil and gas assets=20 located in the Mukta, Panna and Tapti oil and gas fields. Reliance Petroleu= m=20 and ONGC, Enron's joint ventures partners, have expressed an interest in=20 bidding for the stake.=20 Enron India operates three offshore oil and gas fields in a joint venture= =20 with ONGC and Reliance Petroleum. The Tapti, Panna and Mukta fields are=20 located off the coast of Gujarat and Maharastra.=20 It holds a 30% stake in each field, while ONGC and Reliance hold 40% and 30= %=20 stakes respectively.=20 Analysts said Enron may be seeking to divest its oil and gas assets to focu= s=20 instead on "new economy" sectors such as telecommunications.=20 State agrees to widen scope of Enron review committee Our Bureau 02/15/2001 The Economic Times Copyright (C) 2001 The Economic Times; Source: World Reporter (TM) MUMBAI=20 IN RESPONSE to persistent demands from the anti-Enron section of the ruling= =20 alliance, the Maharashtra government on Wednesday agreed to widen the terms= =20 and references of the high-powered Enron review committee. The state government has instituted the review committee to look into the= =20 states energy scenario, with special reference to the US energy giant Enron= =01,s=20 Dabhol Power Company.=20 The terms and references of the review committee will be extended as=20 suggested by the allies of the ruling Democratic Front and whatever documen= ts=20 are sought by the committee will be provided to it including the power=20 purchase agreement, chief minister Vilasrao Deshmukh said on Wednesday.=20 He, however, refused to go into details of the extended scope of the review= =20 panel saying, all issues raised by the DF constituents will be studied.=20 The DF co-ordination committee convenor, N D Patil had earlier disapproved= =20 the terms and references of the Madhav Godbole-led panel saying, the=20 committee should look not only into the PPA but also the Enron project in= =20 totality. He had written to the chief minister asking him to widen the revi= ew=20 committees scope.=20 The review committee will be submitting its interim report about the PPA=20 signed between the Maharashtra State Electricity Board and Enron=01,s DPC,= =20 within a month, said the chief minister.=20 It could take another month or so to submit its report concerning issues=20 raised by the DF splinter groups, Deshmukh said, adding, there are no=20 differences in the ruling alliance over the matter.=20 When asked about the state governments Rs 74-crore payment to MSEB to clear= =20 the last installment of DPCs November bill of Rs 148 crore, Deshmukh said,= =20 The amount was not paid to clear DPCs dues. It is the amount payable to MSE= B=20 from the budgetary allocation. It is purely at the discretion of the board = as=20 how to use its funds, he clarified.=20 To a query, he said, we have not asked the MSEB to put a stop to DPCs=20 payments.=20 Deshmukh reiterated that the Centre should take over DPCs project and said,= =20 the state government was yet to receive any communication in this regard.= =20 Asked about renegotiations with DPC, Deshmukh said, let the review committe= e=20 submit its report first.=20 Meanwhile Kirit Parikh, a prominent member of the review committee, has=20 expressed his inability to attend some of the committee meetings. The=20 anti-Enron section of the DF allies had expressed displeasure at Parikhs=20 inclusion in the committee, citing his pro-Enron stance in the past.=20 Parikh is not withdrawing from the committee, said Deshmukh, while confirmi= ng=20 the development. It might not be possible for a member to attend each and= =20 every meeting of the committee, he said. INDIAN NEWSPAPER HIGHLIGHTS - FEB 15, 2001 02/15/2001 Asia Pulse © Copyright 2001 Asia Pulse PTE Ltd. NEW DELHI, Feb 15 Asia Pulse - Highlights of today's newspapers:=20 =20 THE FINANCIAL EXPRESS=20 - Maharashtra (western India state) government has agreed to widen the term= s=20 and references of the high-powered committee, instituted to look into the= =20 state's energy scenario with special reference to US energy major Enron=20 promoted Dabhol Power Company.=20 India: For a Dabhol relief fund? 02/15/2001 Business Line (The Hindu) Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -= =20 Asia Intelligence Wire IMAGINE this. You are running a company and sign a long-term contract with = a=20 supplier. You guarantee the supplier you will buy at least 90 per cent of= =20 everything he produces. In case you fail to buy up to 90 per cent of the=20 supplier's plant capacity then you agree to pay a penalty to the supplier.= =20 The absolute quantum you have to pay is determined, among other factors, by= =20 the rupee-dollar rate as well as the prices of certain commodities in the= =20 international market. Under the terms of the contract, you agree to shoulde= r=20 both these risks. In case you fail to pay your supplier who, incidentally, is supplying only= =20 about a fifth of your total requirements, the contract mortgages all your= =20 assets as well the assets of your parent company. The contract also=20 guarantees that in case you fail to pay the supplier, your parent company= =20 will be forced to pay the supplier and then deduct it from the revenues due= =20 to your company.=20 As if all this is not enough, the contract also stipulates that it is not= =20 governed by Indian laws and that the parent company will continue to pay th= e=20 supplier even if the contract is termed illegal, invalid or unenforceable.= =20 The supplier starts his operations and given the nature of the contract, th= e=20 product is extremely high-priced and your company is not in a position to= =20 pay. What would you do?=20 "Are you stupid? I would never sign a contract like that." "If my company= =20 even got a hint that I was contemplating signing a contract like this, I=20 would be sacked and legal proceedings initiated against me," were some of t= he=20 reactions I got when I put this proposal to some of my friends from the=20 corporate circles.=20 Why is it then that the Maharashtra State Electricity Board, the Maharashtr= a=20 Government as well as the Union Government have got into such an agreement= =20 with the Enron-promoted Dabhol Power Corporation? Were they all really=20 concerned about the power situation in Maharashtra or were there other unsa= id=20 imperatives?=20 We will perhaps never get the answers to these questions, but as DPC evoked= =20 the Central counter-guarantee for its payment, the controversial project ha= s=20 once again become the focus of media attention.=20 Last week was full of stories and discussions on the controversy from=20 day-to-day news reports, to a lengthy feature in the India Business Report.= =20 But the most interesting one was on India Talks on CNBC and featured Mr Har= ry=20 Dhaul, Director-General of the Independent Power Producers' Association, an= d=20 Mr Abhay Mehta, activist and author of Power Play, an "expose" of the Enron= =20 project.=20 Anchored by Mr Paranjoy Guha Thakurta, the discussion kicked off by talking= =20 about the options open to the various parties involved. Mr Dhaul,=20 understandably considering his constituency, was of the opinion that the=20 first thing to do is honour the contract. He believed it was possible for a= ll=20 parties concerned to come to some kind of an amicable solution. Mr Guha=20 Thakurta interrupted to ask him whether the Maharashtra Government going=20 bankrupt by honouring the contract was an amicable solution. Mr Dhaul's=20 answer was a classic case of using numbers to confuse the issue. "I do not= =20 know whether by adding five per cent of the capacity the Maharashtra=20 government will go bankrupt," he said.=20 Reacting to this, Mr Mehta pointed out that for this additional five per ce= nt=20 capacity that Mr Dhaul talked about, the MSEB would be shelling out about 3= 0=20 per cent of its revenues and once the second phase of DPC came on stream, t= he=20 MSEB would be paying out close to 70 per cent of its total revenues. "There= =20 is no set of conceivable economic parameters which can allow payments of th= is=20 magnitude," he said.=20 Mr Mehta pointed out that what has never been appreciated is the sheer amou= nt=20 of money involved. The total contract with DPC is worth $35 billion, "the= =20 single-largest commercial contract in the history of this country," as Mr= =20 Mehta described it and went on to say that if one assumed a 6.5 per cent=20 annual depreciation of the rupee against the dollar, as it has happened ove= r=20 the last 50 years, it meant a total outlay of - hold your breath - Rs 400,0= 00=20 crore.=20 When Mr Dhaul started to ask whether it meant that the country was not in a= =20 position to accept foreign investment of $2- 3 billion, Mr Guha Thakurta,= =20 again to his credit, interrupted to say the issue was not really the quantu= m=20 of foreign investment as the terms at which it has been contracted.=20 Mr Mehta disputed the claim that DPC has invested $3 billion or about Rs=20 15,000 crore for a 2,000 MW project. "Are they out of their minds?=20 Who has checked these figures," he asked, pointing out that internationally= ,=20 the norm for power projects was Rs 2 crore per MW. "There is no way they ha= ve=20 invested more than $1.5 billion," he said. Mr Thakurta, with a wicked grin = on=20 his face, interrupted to ask him whether he was including the $20 million= =20 that Ms Linda Powers of Enron had said been spent on educating Indian=20 authorities. Second, Mr Mehta said that almost 60 per cent of the investmen= ts=20 has come from India from institutions such as the IDBI, SBI, etc.=20 "We have an absurd situation when a country like Mozambique orders equipmen= t=20 from the US and the US EXIM bank gives a loan for it without any guarantees= .=20 But the US EXIM Bank's loans to Enron have been guaranteed by Indian=20 institutions," Mr Mehta said.=20 Mr Dhaul, while eventually agreeing that power from DPC was more expensive,= =20 said that the regulator in Maharashtra has made certain observations about= =20 it. He said he was not worried about the merit or dispatch aspect of the=20 issue. Mr Dhaul was, of course, referring to the Maharashtra Electricity=20 Regulatory Commission's direction to the MSEB to buy power from the cheapes= t=20 available sources. But the problem is that, irrespective of whether the MSE= B=20 buys power from Enron or not, the PPA stipulates that it still has to=20 continue paying. A point that maybe not Mr Dhaul, but all citizens of=20 Maharashtra should be worried about.=20 Mr Dhaul went on say that he shared Mr Mehta's concerns about the cost of= =20 electricity, and felt that some sort of solution could be found. But he lef= t=20 the critical issue unsaid. Where is the money?=20 How is the Maharashtra Government going to pay the absurd amounts of money= =20 that it has contracted for?=20 May be as a wag suggested, trifle cynically, it is time we set up a Dabhol= =20 Relief Fund.=20 Menka Shivdasani Enron Saga: Power of political will on test Rajesh Ramachandran 02/15/2001 The Times of India Copyright (C) 2001 The Times of India; Source: World Reporter (TM) NEW DELHI: Is there a way out of the Enron imbroglio? Contrary to what=20 `experts' and the government say, there seem several options available to t= he=20 government. But to avail them would require some political will.=20 S N Roy, former chairman of the Central Electricity Authority, points out= =20 that just as Pakistan got a US power company to reduce its tariff by half,= =20 India too should get the Enron tariff reduced. When asked whether it is ready to re-negotiate the power purchase agreement= =20 (PPA) and bring down the tariff, Enron did not respond. Instead, a public= =20 relations agency replied that ``tariffs are not high''.=20 Observers assert that even after ensuring a reasonable profit for Enron, th= e=20 tariffs can be cut. K K Govil, director projects, Power Finance Corporation= =20 insists, ``The present PPA is heavily in favour of Enron. The PPA should be= =20 re-negotiated to get capital costs and rate of return calculated in rupees= =20 and not dollars.''=20 According to Govil, pegging the costs and tariffs to foreign exchange is=20 unheard of. ``The capacity related incentive should also go. Ideally, the= =20 cost of a gas-based plant should be half that of a coal-fired plant.=20 But in Enron's case it is not so. This too has to be rectified,'' said Govi= l.=20 The government is tight-lipped, but sources say the government may palm off= =20 the burden to utlilities like National Thermal Power Corporation, Power=20 Trading Corporation or Power Grid Corporation. That will end the public=20 scrutiny of the project, contrary to what is happening in Maharashtra now,= =20 and the account will be shared by central utilities, state electricity boar= ds=20 and others. Also making the round is a politically powerful industrial=20 house's name, which might broker the deal.=20 But will all this help? Roy feels it would be a disaster: ``Impossible. How= =20 can the government force NTPC or PTC, a commercial enterprise, to buy power= =20 at Rs 5 a unit and sell it at Rs 2?'' Even at full capacity, Enron's power = is=20 expected to cost around Rs 5 a unit, much higher than the NTPC's selling ra= te=20 of about Rs 2 per unit.=20 Prasant Bhushan, fighting a public interest litigation in the Supreme Court= ,=20 has another set of solutions: Nationalise the project by an Act of=20 Parliament, paying Enron a token or fair amount as in the case of bank=20 nationalisation. Or, the Maharashtra Electricity Regulatory Commission's=20 statutory power should be invoked to override the PPA and regulate the=20 tariffs.=20 The Supreme Court had earlier limited the petition's scope to accountabilit= y=20 of the public servants. ``If the SC gives full leave, the project will be= =20 voided since there was much illegality involved. Most importantly, if a=20 criminal investigation into the bribes is initiated, enough evidence could = be=20 unearthed in three months,'' said Bhushan.=20 Will all this deter foreign investment in India? Ashok Rao, convenor of=20 national working group for power, feels the bogey of foreign investment=20 fleeing is a blackmail tactic. He points out that India is a bigger power= =20 industry market than most of Europe, West Asia or Latin America. ``There is= a=20 global recession in power industry. So, most private power companies are ju= st=20 a front for power equipment manufacturers who have to sell their equipment = in=20 India. That is why they insist there should be no competitive bidding for= =20 equipment.'' Would it hurt much if the government synchronised people's nee= ds=20 with investor priorities? Making the power sector viable Prem Shankar Jha 02/15/2001 The Hindu Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -= =20 Asia Intelligence Wire The fact that Enron had to invoke the Central government's guarantee before= =20 the Maharashtra State Electricity Board finally paid its dues till November= =20 shows that both the MSEB and the Maharashtra government are comprehensively= =20 bankrupt. The MSEB paid because the Maharashtra government realised that=20 pushing the burden onto New Delhi would not get it off the hook. The=20 counterguarantee ensured that the Centre would pay Enron and deduct the mon= ey=20 from Maharashtra's annual plan allocation. So why did Mumbai create the=20 confrontation?=20 If one were to go by the ranting of Maharashtra politicians , it was to mak= e=20 sure that there would be `no more Enrons', that is, no more corrupt deals= =20 with rapacious foreign investors, bent upon robbing the poor people of Indi= a=20 by forcing them to pay seven rupees a unit for power. But the true reason i= s=20 that the Maharashtra government was trying to shift the blame for its own= =20 lack of courage. Like virtually every other State government, Maharashtra= =20 lacks the courage to stop giving electricity free, or nearly free, to more= =20 than three quarters of its consumers. This has plunged the MSEB deep into t= he=20 red, because there is an obvious limit to how far the remaining paying=20 consumers can subsidise the rest. The CEO of Enron in India put this in a nutshell a few days ago when he=20 pointed out that the MSEB's problems arose from the fact that it was=20 subsidising 90 per cent of its consumers and allowing transmission and=20 distribution losses - an euphemism for power theft - of fully one third of= =20 the power it generated. As if this was not bad enough, the Government=20 repeatedly declared an amnesty for consumers who had not paid their bills.= =20 The MSEB has therefore sunk deeper and deeper into the red. To cut its cost= s=20 it has bought as little as possible from Enron, and that has pushed the per= =20 unit cost of Dabhol power into the stratosphere. Enron's argument is=20 unassailable. Every single power utility in the world follows one basic rul= e=20 in power pricing. This is to set a tariff that covers the average cost of= =20 generation for all the stations that are on line at the time. When a new=20 power plant is added, or an old one replaced, the much higher cost of=20 generation from the new plant (the marginal cost to the utility) is absorbe= d=20 by raising the average tariff just enough to absorb the increased cost at t= he=20 margin. In the case of Maharashtra, since the Dabhol plant added 6 per cent= =20 to the State's total generating capacity and amounted to about 8 per cent o= f=20 MSEB's capacity, an 8 per cent increase in average tariff or in the=20 realisation of unpaid dues, would have sufficed. But although the MSEB had= =20 been increasing its average tariffs in earlier years, it did not do so=20 between 1997-98 and 1998-99, that is, when Dabhol was commissioned. Add to= =20 this a rise in T&D losses, and MSEB's average realisation actually fell aft= er=20 Dabhol came on line.=20 If Maharashtra does not want to buy Dabhol's power, why does it not sell th= e=20 surplus to a neighbouring State or to the National Thermal Power Corporatio= n=20 in the public sector? The answer is that none of them has kept its average= =20 tariff realisation above the average cost of generation. They too will add = to=20 their losses by buying Dabhol power, and therefore prefer load shedding=20 instead.=20 The difficulty that Enron is experiencing in recovering its dues has=20 delivered the coup de grace not just to foreign, but to all private=20 investment in power projects. For if it takes a dentist's tongs to extract= =20 money secured by a formal central counterguarantee, what will happen to=20 projects that do not enjoy that safeguard? Since public investment is capab= le=20 of adding at most 3000 MW of generating capacity a year when the country=20 needs three times that capacity, economic growth will soon slow to a snail'= s=20 pace for want of power.=20 The Central government knows this. Since 1996 it has been prodding the Stat= e=20 governments towards breaking up the State electricity boards into separate= =20 generation, transmission and distribution companies, and then privatising= =20 them. But so far only one State - Orissa - has gone the whole way. The cris= is=20 that the country therefore faces is that while at the present pace the=20 privatisation of distribution could take as long as ten years, the power=20 crisis is already here. What the country needs is a means to make the State= =20 electricity boards viable today, before they are privatised. So far, apart= =20 from making the States bind themselves to various financial reforms in the= =20 memoranda of understanding that they have signed with the Centre as they as= k=20 for doles to tide them over their financial woes, the Central Government ha= s=20 done nothing.=20 There is, however, a way to do this almost immediately. This is to end the= =20 theft of power that is taking place in the country in the name of the farme= r.=20 In sharp contrast to the privatisation of the SEBs, this can be accomplishe= d=20 in at most two years.=20 While everyone knows that some of the electricity supposedly consumed by th= e=20 farmer is actually diverted to other uses, most people have assumed that th= e=20 proportion diverted is relatively small. This is because the rise in the=20 share of electricity consumed by the rural sector, from 14 per cent in 1978= =20 to 31 per cent in 1995, seems on the face of it reasonable.=20 Not everyone has realised that in absolute terms, farm consumption increase= d=20 by 8.3 times. And this happened when the number of electrified tubewells ha= d=20 only doubled from 3.3 million to 6.3 million and the land under irrigation= =20 had increased by only 48 per cent. In absolute terms therefore electricity= =20 consumption for agriculture should not have risen by more than three times.= =20 The balance, amounting to 90 billion units in 1998- 99, was in effect stole= n.=20 Had the States realised only Rs. 2 per unit for this electricity, it would= =20 have increased the revenue of the SEBs by Rs. 18,000 crores, and made them= =20 solvent overnight. State governments have been unwilling to raise tariffs f= or=20 agriculture for fear of hurting the farmers. But the Central Government can= =20 show them a simple way of continuing to subsidise irrigation, which is=20 overwhelmingly the main consumer of electricity on the farm, without=20 encouraging wholesale diversion and theft. This is to issue registration=20 papers for every electrified pumpset in the country, stating its horsepower= =20 and the land cultivated by the farmer, raise the rural tariff to a flat Rs.= 2=20 per unit, or whatever the SEBs deem appropriate, and offer a rebate of Rs.= =20 1.75 (the going rate of subsidy) on the estimated maximum consumption of=20 power per tubewell. Farmers need only bring their bills to a local bank wit= h=20 which they have opened an account, show their registration papers, and pay= =20 the rebated amount. The bill will be paid by the bank (as urban electricity= =20 and telephone bills are paid today) and the rebate collected by it from the= =20 government authority concerned.=20 This scheme has the added advantage that to avail themselves of the subsidy= ,=20 the farmers will have to install electricity meters. State governments have= =20 accepted the need to do this in principle but have so far been unable to=20 speed up its implementation. Prabhu stresses supply reforms Our Economy Bureau NEW DELHI 02/15/2001 Business Standard 2 Copyright © Business Standard Union power minister Suresh Prabhu has called for the need to shift focus= =20 from power generation to the upgradation of the distribution system, so tha= t=20 generation of power becomes a more paying proposition. We have decided to= =20 constitute a committee to look into the upgradation of the distribution=20 mechanism in the country, as the pilferages in the distribution procedures= =20 and poor collection mechanisms have been found to be the main constraining= =20 factors in the development of the sector, Prabhu said here today. Reforms have to be undertaken in the distribution front and the central=20 government will finance states which are willing to undertake reforms, he= =20 said at the summit, `India Can Make It', organised by Assocham. "An MoU has= =20 already been signed between the Centre and the Haryana government yesterday= =20 for cooperation in the field of power reforms, while more agreements will b= e=20 signed with other states in the near future," he said. The Union Cabinet ha= d=20 held a special meeting on the power situation in the country yesterday, wit= h=20 the minister giving a detailed presentation on the prospects for reform in= =20 the sector.=20 The country has already faced a major power breakdown on January 1, while t= he=20 invoking of the counter-guarantee by Enron has put both the Centre and the= =20 Maharashtra government in a piquant situation. The MoUs specify clear=20 milestones which state governments have to achieve, following which central= =20 assistance will be provided, he said. On the transmission front, the=20 government has decided to create a national grid for effective management o= f=20 power. MASTER FILE APPS OFF THE SHACK K. JAYADEV WITH INDRAJIT BASU AND SRINIVAS R. 02/15/2001 Computers Today 32 Copyright 2001 Living Media India Ltd Much saged, are you finally planning to start a dotcom venture? Planning to= =20 use the Internet as a new tool of doing business? Or want to have a virtual= =20 private network to get not only your various business processes=20 interconnected, but also net in the suppliers and partners? Sign up with an= =20 Internet data centre (IDC), and your requirements will be taken care of.=20 Earlier described mostly as Web hosting companies, IDCs offer a host of=20 facilities for organisations to face the Internet economy. It is a facility= =20 designed specifically to provide organisations with specialised=20 infrastructure and support required to optimise the security and availabili= ty=20 of the firms' Internet-related activities and initiatives. And as E-busines= s=20 demands continue to surge and grow in complexity, companies are looking at= =20 fully managed application hosting. Even companies which till now could not= =20 afford applications like enterprise resource planning (ERP) and customer=20 relationship management (CRM) are on the look out for accessing these key= =20 applications remotely without having to invest in the infrastructure build-= up. What do IDCs Offer?=20 Data centres are considered to be a critical component of Internet=20 infrastructure as they contain the servers on which reside the Web sites of= =20 various companies and businesses. They ensure that the data is available an= d=20 the integrity is maintained without the customer having to employ and train= =20 someone in-house. It also frees the client of obtaining, maintaining and=20 upgrading the required hardware/software.=20 Says Jasjit Sawhney, CEO of Net4India, "Data centres can manage bandwidth i= n=20 a very efficient manner which cannot be achieved using leased lines. For=20 instance, a small company may not require a full-fledged leased line or it= =20 might not want to tie itself down to one office/location. Hence, the compan= y=20 can place its server at a data centre. Also bandwidth can be increased as a= nd=20 when the company desires."=20 Explaining the functions of IDCs, Amar Babu, national channel sales manager= =20 of Intel India, adds, "Data centres provide plain hosting services wherein= =20 space, security and infrastructure is offered to clients. As they progress = on=20 the value chain, they will provide value-added services depending on the ne= ed=20 of their clients, which could range from bandwidth management to various=20 applications. This would enable them, and in turn their clients, to define= =20 QOS (quality of service) and SLAs (service level agreements) across the=20 clients' E-business requirements."=20 Major Players=20 Industry analysts in India expect investments to the tune of Rs 500 crore= =20 being made in the next 18 months into the data centre business. Starting fr= om=20 Sify, major players in India include Enron, Reliance, Asianfrontiers,=20 Net4India and Mantra Online. International giants like Cisco, Microsoft,=20 Intel, IBM, Sun Microsystems and Compaq are helping organisations build the= =20 data centres.=20 The investment depends on the number of servers and the space they occupy a= nd=20 generally range between Rs 3 crore for a small centre and Rs 50 crore for a= =20 big IDC. Standard benchmark developed by international players hovers aroun= d=20 $450 per square feet for a world-class organisation, which is called a leve= l=20 4 data centre.=20 IDCs, like other segment of the IT industry, are now looking at how to=20 differentiate themselves. In addition to focusing on delivering services,= =20 they are also trying to provide carrier neutral facilities and=20 platform/network independent solutions to customers. This approach offers= =20 customers the maximum flexibility in that they can engineer the solution th= at=20 best fits their needs without constriction. It also provides redundancy and= =20 reliability. "IDCs make data a reliable management tool to run a firm with.= =20 You have the holy trinity of data-manageability, reliability and security.= =20 This is ultimately what defines a data centre," observes Parind Parekh of= =20 Exatt Communications.=20 With Indrajit Basu in Kolkata and Srinivas R. in Bangalore=20 National Award From The Points of Light Foundation Honors Six Companies=20 Dedicated to Community Service 02/15/2001 PR Newswire (Copyright © 2001, PR Newswire) Ongoing employee volunteer programs benefit companies and their communities= =20 WASHINGTON, Feb. 15 /PRNewswire/ -- The Points of Light Foundation is=20 presenting an national community service award to six companies for their= =20 contributions and commitment to developing and managing effective employee= =20 volunteering programs. The award is part of an ongoing effort by the Foundation to encourage every= =20 company to get involved in volunteering and make a difference.=20 "In industries as diverse as aerospace and e-commerce to the legal professi= on=20 and electric utilities, companies are discovering how ongoing community=20 service programs can deliver real-world results," says Robert K. Goodwin,= =20 president and CEO of the Foundation. "We are excited to have this chance to= =20 honor their accomplishments as former President George Bush presents them= =20 with the 2000 Award for Excellence in Corporate Community Service."=20 This year's winners include Alibris, an e-commerce company that specializes= =20 in hard-to-find books; the Boeing Co., the largest aerospace company in the= =20 world; Capital One, a financial service provider; Holland & Knight, a law= =20 firm with offices in 21 cities across the United States, as well as several= =20 international locations; Petroleos de Venezuela, an energy company with=20 40,000 employees based in Caracas, Venezuela; and Salt River Project, an=20 electric and water utility in Phoenix.=20 The awards will be presented Feb. 23 at the George Bush Presidential Librar= y=20 and Museum in College Station, Texas.=20 The Points of Light Foundation, the nation's leading volunteer resource,=20 provides a full range of services to help businesses develop and manage=20 workplace volunteer programs. For more information, visit=20 www.pointsoflight.org .=20 Sponsors of the 2000 Awards for Excellence in Corporate Community Service= =20 include Bank of America, BP, Compaq Computer Corp., CVS, Enron Corp.,=20 Prudential, Roy Ryu, and the Washington Times Foundation & Atlantic Video.= =20 CONTACT: Kimberli Meadows of The Points of Light Foundation, 301-318-9277,= =20 e-mail, kmeadows@pointsoflight.org=20 Lawsuits pending in the wake of state's energy crisis By The Associated Press 02/14/2001 Associated Press Newswires=20 Copyright 2001. The Associated Press. All Rights Reserved.=20 Here are some of the lawsuits stemming from California's power crisis and= =20 hearing dates, if known:=20 -Duke Energy vs. California Independent System Operator. Duke is seeking to= =20 force the state to back purchases of expensive emergency power bought by th= e=20 ISO. The California Department of Water Resources has said it will only pay= =20 for less expensive energy bought on the day-ahead market. No court date set= . -Duke Energy vs. Gray Davis. Duke claims that Davis' decision to commandeer= =20 long-term power contracts owned by Edison and PG&E violated the supremacy= =20 clause of the U.S. Constitution. The lawsuit claims the emergency power=20 granted to Davis under state law does not extend to the power contracts,=20 which are under "exclusive federal jurisdiction." Hearing Feb. 15.=20 -Enron and Avista vs. California Power Exchange. Three power wholesalers wa= nt=20 to prevent the power exchange from forcing them to pay for nearly $1 billio= n=20 owed by Southern California Edison and Pacific Gas and Electric. Under a=20 federal tariff that governs the exchange, if a buyer of power defaults on= =20 payments, every member of the exchange - including power sellers - must pay= a=20 portion of the debt. hearing Feb. 15.=20 -Southern California Edison vs. Loretta M. Lynch, et al. Edison wants a=20 federal court to allow it to pass on the wholesale cost of power to=20 ratepayers. A judge rejected an attempt earlier this week to force the Publ= ic=20 Utilities Commission to raise rates immediately. Lynch is president of the= =20 PU
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