PRESS RELEASE

July 5, 2002

Energy Analyst Sees Electricity Price Volatility Continuing in Short-Term

Encourages Business to Plan Ahead

CONCORD, NH - Ms. Heidi Kroll, Market and Policy Analyst for Gallagher, Callahan & Gartrell, expects competitive market forces to take hold and bring order to the electricity market, but sees continued volatility and price spikes in the near future.

At the International District Energy Association's 93rd Annual Conference and Trade Show on Sunday, June 23, Kroll presented her views on the future of electricity prices and how businesses might be affected. The exhibition, held in Baltimore, Maryland, focused on the promotion and exchange of information crucial to the district energy industry between energy and utilities experts nationwide.

Kroll stated, "It is likely that the path from a regulated industry to competitive markets will become clearer with time and that the public's confidence in electric competition will be restored. In the interim, however, this uncertainty will compound traditional market forces, increasing the likelihood for continued price volatility and magnifying price spikes."

She also briefly described options businesses can take to hedge against such price volatility. Said Kroll, "The good news for individual electric users is that they can control their business decisions. There are a growing number of electric choices that can provide enormous value when carefully selected and tailored based on business needs. For example, on-site cogeneration, load shedding protocols, energy efficient motors, and high efficiency lighting can provide great returns on company investment for many applications."

She also added, "Forward contracts can also be an effective tool to hedge against price volatility, but when they merely lock-in high prices that improved market rules are apt to lower over time, long-term investments in and commitments to multi-fuel production systems, load management and energy efficiencies could be a better bet."

Kroll's presentation and a related article titled Energy Prices: What Does the Future Hold are available on the Gallagher, Callahan & Gartrell web site.

Gallagher Callahan & Gartrell is a leading multidisciplinary government and regulatory law firm offering services to clients in New Hampshire and New England.

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