Power Industry Continues to Experience Growth in 2002

---

The following is an advisory by IndustrialInfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The recently released 2002 Industrial Outlook (http://www.industrialinfo.com/indoutlook.htm) published by IndustrialInfo.com indicates that the power industry will continue to experience growth through 2002. Despite a slowing economy, milder weather conditions during 2001, and many states reconsidering deregulation, capital and maintenance expenditures are expected to exceed 2001 figures significantly.

In the United States, the majority of capital expenditures will continue to be focused towards construction of new grassroot power plants, unit additions at existing stations, and repowering of older, less efficient units. Over the past three years, most of the new generation constructed has been in the form of simple cycle and combined cycle natural gas-fired plants. In recent months, a growing trend towards development and construction of new coal-fired power units has been identified and is expected to continue through the next few years. Development of new generation utilizing renewable energy resources is also expected to experience continued growth. Attention is also being focused towards nuclear generation as owners of twenty nuclear units have applied for relicensing, with more expected through 2004. Expenditures towards implementation of environmental programs during 2002 are expected to remain steady.

Most international regions are experiencing substantial growth in the power industry. This is mainly due to needed additional capacity to supply power to underdeveloped regions, growing populations, and deregulated markets across the globe. Some regions of the world have expressed intentions to phase out nuclear generation over the next two decades and new capacity will be needed to replace decommissioned nuclear units. Development of renewable energy is experiencing tremendous growth as many countries seek more environmentally friendly sources of electricity.

Overall, 2002 continues to be promising for companies involved with the electrical utility industry. However, as new capacity is added and prices for electricity continue to decline, the much anticipated slow down in the industry could be on the horizon.