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Arlington, Va.-based AES will likely be forced to offload much of its Latin America portfolio at bargain prices as there are a slew of assets already for sale in the region and international interest in the sector is very low, reason analysts and bankers. AES announced last week it is looking to sell $1-1.5 billion of underperforming assets in the U.S. and Latin America to shore up its balance sheet.

The Edison Electric Institute is pushing for the creation of standardized mark-to-market power-trading accounting practices to mitigate foul play and to improve investors' understanding of power traders' balance sheets. David Stringfellow, director of accounting at the Washington, D.C.-based utility lobbying group, told PFR that Enron's alleged abuse of accounting rules has shown the need for specific power-trading guidelines. The EEI is currently gathering industry support for the move and hopes to approach the Financial Standards Accounting Board and its affiliate the Emerging Issues Task Force (EITF) within the next few weeks.

The project finance market is turning ever more wary of merchant risk, as evidenced by the recent restructuring of two deals in syndication, and interest is growing among lenders looking to offload their exposure to non-contracted power price risk in the secondary market. One project financier notes that although there's never been an active secondary market in project loans, since the start of the year he's been contacted by a number of players looking to offload merchant exposure on deals that have already closed. "It's not pitching. It's really begging," he says of the sales approach.

MMC Enterprise Risk, a unit of the insurance and asset management behemothMarsh & McLennan, is looking to build a weather team targeting end-users with structured solutions and has hired ex-Enron origination manager Partho Ghosh as part of the effort. M&M has been looking at the market for a while, but hasn't been active so far, says one official. Another was unsure whether the insurer had executed any deals.

Newark, N.J.-based Public Service Enterprise Group last Tuesday launched a new $620 million senior revolving credit facility, with J.P. Morgan leading the transaction. A PSEG spokesman says the one-year deal is for general purposes and a C.P. back-up. The revolver is upsized by $50 million over the previous facility.

Dynegy Holdings was forced to pay a 185 basis point premium over it most recent debt offering when it tapped the bond market earlier this month. The unregulated arm of the Houston power giant tapped the bond market Feb. 15 with a $500 million deal priced at par to yield 8.75%. Its last fixed-income foray--a March 2001 $500 million offering of 10-year notes--yielded 6.9% at offer. The price change reflects the company being placed on credit watch for a possible downgrade since the last issue and wider credit spreads for the sector as a whole, explains Steve Stengel, a spokesman.

Reliant Resources' decision to scrap the sale of its Dutch generation and European energy-trading business and instead begin rebuilding its European power franchise, has left M&A bankers dumbfounded. "Once you've announced a sale you've got to go through with it," says one London-based power-banking chief. He adds, "When you've told investors and employees that the business doesn't fit in with your plans, how can you then retain it?"

Bonds Date Maturity Issuer Amount Price Type of Security Coupon (%) Moody's S&P Book Manager(s) 02/15/02 02/28/07 EnBW International Finance 655.4 99.484 Fxd/Straight Bd 5.125 A2 A+ BarcCap/Deutsche Bank 02/15/02 02/28/12 EnBW International Finance 873.9 99.704 Fxd/Straight Bd 5.875 A2 A+ BarcCap/Deutsche Bank 02/19/02 12/28/05 Nederlandse Waterschapsbank 200 99.789 Fxd/Straight Bd 4.25 Aaa AAA CSFB/RBC M&A Date Announced Date Effective Target Name Target Country Acquiror Acquiror Country Value ($mil) 02/15/02 02/15/02 Apokjeden Norway Tamro Oy Finland - 02/15/02 - NRG Energy U.S. Xcel Energy U.S. 585.684 02/16/02 - Gas Brasiliano Distribuidora Brazil Petrobras Brazil - 02/18/02 02/18/02 KRI (Piecobiogaz) Poland RWE Germany - Source: Thomson Financial Securities Data Company. For more information, call Rich Peterson at (973) 645-9701.

Dr. Klaus Sturany, cfo of RWE, told a room packed with analysts and bankers eager to hear confirmation of the Germany company's bid for Innogy "I'm afraid some of you might be disappointed." He told delegates the company doesn't comment on market rumors and declined to answer a question on RWE's appetite for the U.K. energy market. However, he acknowledged the slim pickings in the European market.

Following is a directory of ongoing generation asset sales. The accuracy of the information, which is derived from many sources, is deemed reliable but cannot be guaranteed. To report new auctions or changes in the status of a sale, please call Will Ainger, managing editor, at (44-20) 7303-1735 or e-mail wainger@euromoneyplc.com. Seller Plants Location MW Plant Type Advisor Status American Electric Power/ Northeastern units 3 & 4 Okla. 300 Coal N/A Reviewing sale strategies. Central and Southwest Corp. Lon C. Hill Texas 546 Gas Nueces Bay Texas 559 Gas Ennis S. Joslin Texas 249 Gas ADWEA Um Al Nar Abu Dhabi 1,100 Gas & Water Desalination CSFB Expected to send out RFPs in December. Central Hudson Gas & Electric Syracuse N.Y. 100 CHP Navigant Final bids due by late Nov. Beaver falls N.Y. 100 CHP Niagara falls N.Y. 52 Coal CMS Energy Loy Yang Melbourne, Australia 2,000 Coal Not chosen Announced intention to sell. Ensenada Argentina 128 Gas-fired J.P. Morgan CT Mendoza Argentina 520 Gas-fired J.P. Morgan El Chocon Argentina 1,320 Hydroelectric J.P. Morgan DPL All plants Ohio 3,500 N/A Morgan Stanley Enel Eurogen Italy 7,008 Various - Having sold Elettrogen it will sell one of two Interpower Italy 2,611 Various - other generation portfolios shortly. Enron Bahia Las Minas Panama 355 PwC Intention to sell. Pueto Quetzal Guatemala 110 (administrator) PQPLLC Guatemala 124 Margarita II Nicaragua 70.5 EcoElectrica Puerto Rico 507 Puerto Plata Dominican Republic 185 Cuiaba Brazil 480 Nowa Sarzyna Poland 116 Continued Enron Sarlux Italy 551 PwC Intention to sell. Trakya Turkey 478 (administrator) Chengdu Cogen China 284 Northern Marianas Guam 80 Bantagas Philippines 110 Dabhol India 2,184 Subic Bay Philippines 116 Teesside U.K. 1875 Wilton U.K. 154 IVO Energy Brigg U.K. 240 Gas BNP Paribas Preparing information memo. South Humber U.K. 1,240 Gas Grangemouth*** U.K. 130 Gas Edenderry Ireland 120 Peat Independent Energy Various U.K. 130 N/A KPMG KPMG is handling the asset sale after Independent Energy went into receivership. MARCOR Remediation - Calif. 5.7 Wood - - (A broker acting for an undisclosed seller) Niagara Mohawk Power Nine Mile Point 1 N.Y. 1,614 Nuclear N/A Awaiting bids. Nine Mile Point 2 N.Y. 1,140 Nuclear N/A North Atlantic Energy Seabrook* N.H. 408 Nuclear N/A Must be sold by Dec. 2003. Oman (Ministry of Housing, Rusail Oman 730 Gas - - Electricity & Water) Ghubratt Oman 507 CHP Wad Al-Jazzi Oman 350 Gas Ontario Power Generation Lennox Ontario 2,140 Oil, gas Merrill Lynch & Expects to sell Lennox and Lakeview shortly. Lakeview Ontario 1,140 Coal Scotia Capital- Atikokan Ontario 215 Coal Thunder Bay Ontario 310 Coal Mississagi River Ontario 490 Hydro Pacific Gas & Electric 68 Plants Calif. 3,800 Hydro Morgan Stanley Awaiting PUC approval. Expect sale to close shortly. Public Service Co. of New Merrimack N.H. 475.8 Coal J.P. Morgan Subject to approval for rate settlement by PUC Hampshire (Northeast Utilities) Newington N.H. 415 Oil/gas and state legislature. Schiller N.H. 146.6 Oil/gas Lost Nation N.H. 19.1 Diesel Merrimack N.H. 42.2 Diesel Schiller N.H. 18 Diesel Public Service Co. of New White Lake N.H. 23 Diesel Subject to approval for rate settlement by Hampshire (Northeast Utilities) Amoskeag N.H. 17.5 Hydro PUC and state legislature. Ayers Island N.H. 9.1 Hydro Canaan Vt. 1.1 Hydro Eastman Falls N.H. 6.5 Hydro Garvins Falls N.H. 12.1 Hydro Gorham N.H. 2.1 Hydro Hoolsett N.H. 1.95 Hydro Jackman N.H. 3.55 Hydro Smith N.H. 14.2 Hydro ScottishPower Hazelwood Victoria, Australia 1,600 Coal CSFB Final bids due shortly. TXU Lake Creek Texas 323 Gas Merrill Lynch Reviewing sales strategy. Tradinghouse Texas 1,340 River Crest Texas 110 Mountain Creek Texas 893 Parkdale Texas 327 North Main Texas 123 Monticello Texas 1,900 Coal Merrill Lynch Is looking to sell an undisclosed number of its Martin Lake Texas 2,250 coal assets. Big Brown Texas 1,150 Sandow Texas 545 Wisconsin Energy Bridgeport Conn. 1,100 (combined) - - Has put up for sale following collaspe New Haven Conn. 1,100 (combined) of NRG deal. * North Atlantic Energy owns 34.8% of Seabrook *** Fortum owns 75% of Grangemouth. Mitsubishi owns the remainder.