What effect has the Enron bankruptcy had on Mirant?
There’s no question our sector is out of favor. If a company the size of Enron could go bankrupt, then anyone could. You’ll see companies scale back their plans for growth. We’ve had to adjust our growth plan to meet this new market reality. We’re not in trouble financially, but we’ve cut our capital budget by 40%, reduced our growth rate, and sold some assets. We’re the 13th-largest owner of power plants in this country. That’s the reason we’re in trading and marketing — to minimize the risks of these plants. Some 80% to 90% of the money we make is from our [generating] assets. That isn’t well understood. I would not want to own assets without having a trading operation. The key is to integrate the two. Q: Do you think there’s a risk that Enron’s failure creates a political backlash against deregulation that could legislate the merchant business away? A: I don’t think it will. The competitive wholesale markets have proven they are robust and viable. They will continue. Q: Is Enron’s
