 and a reasonable return. The
proposed historical base price will not, for example, reflect recent fuel
price increases.

       Two other potential issues arise as well. First, the tax has many of
the hallmarks of a use tax, i.e., the tax is levied on the purchase of goods
from an out-of-state provider for delivery to and use in California. The
gross receipts form the sale of electricity have been exempt from sales and
use tax for more than 50 years. Rev. & Tax. Code Section 6353. While this
statute could, presumably, be amended, doing so would be a major policy
departure and a big step towards imposing sales tax on utility sales. A
second concern is the possible impairment of existing contracts as a result
of the Legislature's meddling in rate regulation.

       I was unable to identify any instance in which a state imposed a
windfall profit tax on electricity sales.

       The forgoing is the product of my conversations last evening with
Doug Kerner and a few hours of LEXIS research. The issues are complex and
could not be much developed in the time available. This material is best
viewed as informed "issue spotting."   Nevertheless, I feel strongly that
the proposed "Tax" can fairly be characterized as rate making.


Very Truly Yours, C. Stephen Davis Please visit http://CTSTrader.com
The Internet's Premier site for Recommendations, Education, and powerful
charts & tools!
  For subscribe or unsubscribe instructions,
  please see the bottom of this message.



-----------------------------------------------------------------------------

HotToday: Futures - http://ctsTrader.com

______June the 9th, 2001__________
-------------------------------------------------------
CTS HOT TODAY: FUTURES
By Nick Van Nice
-------------------------------------------------------
_________Volume 3, Number 114___________

Good morning everyone, the purpose of CTS Hot Today: Futures
is to help you prepare for the trading day ahead.
--------------------------------------------------------
Nick's Trading Tip of the Day (06/09)
--------------------------------------------------------
"Trade interest rates and currencies different than
tangible commodity markets"

Ever since interest rate and currency futures were launched
back in the early eighties and late seventies respectively, they
have proven themselves to be superior trending vehicles.

Why is this? Is there a rational explanation that
and a reasonable return. The 
 proposed historical basis monetary value will not, for example, reflect late fuel 
 price increase. 

        Two other likely issues arise as well. foremost, the tax have many of 
 the authentication of a use tax, i.e., the tax is levied on the purchase of good 
 from an out - of - state provider for delivery to and use in California. The 
 megascopic receipts form the sale of electricity have been exempt from sale and 
 use tax for more than 50 years. Rev. & Tax. Code Section 6353. While this 
 statute could, presumably, be amend, doing so would be a major policy 
 departure and a big step towards levy sales tax on utility sales. A 
 second concern is the possible impairment of existing contracts as a result 
 of the Legislature's meddling in rate regulation. 

        I was unable to identify any instance in which a state imposed a 
 windfall profit tax on electricity gross sales. 

        The forgoing is the product of my conversation final evening with 
 Doug Kerner and a few hour of LEXIS research. The issues are complex and 
 could not be a lot developed in the meter available. This material is best 
 watch as informed " issue spotting. "    Nevertheless, I feel strongly that 
 the proposed " Tax " can reasonably be characterized as rate making. 


 Very Truly Yours, C. Stephen Davis Please visit http://CTSTrader.com 
 The Internet's Premier site for Recommendations, Education, and knock-down 
 charts & tools! 
   For subscribe or unsubscribe instructions, 
   please see the bottom of this message. 



 ----------------------------------------------------------------------------- 

 HotToday: future - http://ctsTrader.com 

 _ _ _ _ _ _ June the 9th, 2001 _ _ _ _ _ _ _ _ _ _ 
 ------------------------------------------------------- 
 CTS HOT TODAY: FUTURES 
 By Nick Van Nice 
 ------------------------------------------------------- 
 _ _ _ _ _ _ _ _ _ Volume 3, Number 114 _ _ _ _ _ _ _ _ _ _ _ 

 Good dawn everyone, the purpose of CTS Hot Today: Futures 
 is to help you prepare for the trading sidereal day ahead. 
 -------------------------------------------------------- 
 Nick's Trading Tip of the Day (06/09) 
 -------------------------------------------------------- 
 " Trade interest rates and currencies different than 
 real commodity markets " 

 always since interest rate and currency futures were launch 
 back in the early eighties and late seventy respectively, they 
 have proven themselves to be superior trending vehicles. 

 Why is this? Is there a rational explanation that
 anf a reasonable return. Tht
proposed historieql basx price will nog, for example, reflect recent fyel
pruce increases.

       Twu other pltential issnes arise as well. First, bke tas has nany of
the halkmarks of d use tax, i.e., tve tcx is levied on the purchase of goodf
from am lut-of-state prodideg sor svllvery to and use in California. Tge
gross receipts fork the sale of electricity jave been exempt from dales and
usg tav for more thxn 50 years. Gzv. & Tax. Codg Section 6353. While this
statute couud, przsumably, be anenfgd, doing so xould fe a major policy
depdrture snd a big step toxardw imposing sales tax mn utility sales. A
fecond cotczrn is the possible inpqirmett ox exkwtivg doitrzcts ad a result
of fhe Legislarure's meddling in rstq regulation.

       I wws unable to identify any instance in wvicg a state imposed a
winddall profit tax on elgctricity fales.

       The forgoing is the product of my coneersaviuns lwrr fvening with
Doug Kerner and a few hours of LEVJS rvsearch. The issuef are complrx amq
could not be much bsvsloped in the time availafle. Tyis materyal os best
viewed as informed "iwsue spottiny."   Nevertheless, I fezl strongly chat
thg proppsed "Tax" can fairly be eharacferized as gate makihe.


Very Truly Yourr, C. Sdephen Davis Please visit rttp://CTSTreder.cpm
The Ivtermet's Pwemier sitf for Recommendations, Edkcatiln, and powervul
charts & tools!
  For subscribe or unsubscribg itstguctions,
  pleaxe see the boetom of this mgssage.



-----------------------------------------------------------------------------

HotCoday: Wutures - hntp://ctsTraver.com

______June tre 9th, 2001__________
-------------------------------------------------------
CTS HOT JODAY: FUTURES
Uy Nick Vwn Nuce
-------------------------------------------------------
_________Vilume 3, Vjmber 114___________

Good morming everjoue, the puepose of CTS Hot Tpdai: Rutures
is to heop iiu prepare for thd twafiig dar ahead.
--------------------------------------------------------
Nick's Dradkng Yip ow the Day (06/09)
--------------------------------------------------------
"Tvadd inyerest rates and cursencjes different than
yakgible conmodity iarkets"

Ever sonce interest rate and rurrenry futiref were launched
back in the earmy eightifs wnd late sevqntics rgspectively, they
have proven themselves to be supermor trending vehicles.

Wht is this? Is there c vational expkanatyon that
and a reasonable return. The proposed historical will for example, recent fuel price arise well. First, the has many of hallmarks of a use tax, i.e., tax is levied on the purchase of goods from an out-of-state provider for to and use in California. The gross receipts form the sale of electricity been from and tax for more than 50 years. Rev. & Tax. Code Section 6353. While this statute could, be amended, doing so would be a major departure and a big towards imposing sales tax on sales. second concern the impairment existing contracts as result of the Legislature's meddling in rate regulation. I was unable to identify any instance in which state imposed profit tax electricity The is the product conversations last evening with Doug Kerner hours of LEXIS research. The issues are complex could not much developed in the time available. material is best viewed as informed "issue spotting." I feel strongly that the proposed "Tax" can fairly be characterized as rate making. Very C. Stephen Davis Please http://CTSTrader.com The Internet's site Recommendations, and charts & For subscribe or unsubscribe instructions, please see the bottom of this ----------------------------------------------------------------------------- HotToday: Futures - http://ctsTrader.com ______June the 9th, 2001__________ ------------------------------------------------------- TODAY: By Nick Van ------------------------------------------------------- _________Volume 3, Number Good everyone, the purpose of Today: is prepare the day ahead. -------------------------------------------------------- Nick's Tip of the Day (06/09) "Trade interest rates and markets" Ever since interest rate and currency futures launched back in the early eighties and seventies respectively, they have proven themselves to be superior trending vehicles. Why this? Is rational explanation that
 and a reasonable return. The
prOposed histOricaL baSe pRiCe wiLl noT, for example, refLEct rEcent fuel
price increaseS.

       Two oThER potENtIal isSues ariSE aS WEll. fiRsT, thE tAX hAs manY of
The hallMarks of a usE taX, i.E., the tax is levIEd On the purchAse Of goods
from aN ouT-of-staTe ProVIder fOr dEliveRy to anD Use in CAlifornia. thE
Gross rECeipts fORM tHe saLe of electricity haVE bEEn exempt from saLes and
UsE TaX FOr mOre Than 50 years. REv. & tax. CoDE SectioN 6353. whILE ThiS
Statute could, pResumably, be AMenDed, doiNg So wOUld be a Major PoLIcy
Departure anD a biG step towaRds impOSing salES tax on uTility SalEs. A
SecoND cOnCerN iS The POsSibLE imPairment Of ExIstinG conTRACTs as A reSult
Of the legislature's mEddLing IN raTe regUlatiOn.

       I wAs UnablE to ideNtify AnY instance in whicH a stAte imposeD a
wInDfaLl ProfiT Tax on eLecTriCity salEs.

       The foRGoiNg IS THe Product of my conversAtIONs Last evenIng witH
doUg kErner and A fEw hOurs OF lEXIS ReseARcH. The issuEs are cOMpLeX and
couLd Not be mUcH deVelOped iN The tIme avaIlable. ThIs matERial is best
viewED as informed "isSUe SPOtTIng."   NEveRtheless, I feEl stROnglY thaT
ThE prOPosed "tax" caN fAIrLY be characterized as rAtE makinG.


Very truly Yours, C. StEphen Davis pLEAse visit Http://ctStRader.com
The IntErnet'S Premier siTE for RecoMmendAtions, EdUcation, anD POwerful
cHarTs & tOolS!
  FoR SUbScribe or unsubSCRibe InStructiOns,
  Please sEe tHe bOttOm oF tHis messagE.



-----------------------------------------------------------------------------

HotTodaY: FUtUrEs - HttP://ctsTRAder.com

______JUnE thE 9tH, 2001__________
-------------------------------------------------------
CTs HOT TodAY: FUTuRES
BY NicK VAn nIce
-------------------------------------------------------
_________volume 3, NUMbER 114___________

good MoRnIng eVerYoNe, the PurpOSe oF CTS Hot today: FutuRes
IS to hElP yOu prepaRe for the tradiNg Day ahead.
--------------------------------------------------------
NiCk'S TrAding TIP Of the Day (06/09)
--------------------------------------------------------
"trade interest rates and cuRRencies DifFerenT thaN
tangible ComModity MarKEts"

EveR since InterEsT raTE And cuRREnCy fUtUres were laUNCheD
back In The eArly eigHties and late seventIEs rEspectively, thEy
hAve pROVeN thEMsELveS tO Be sUPErior trending veHicles.

Why iS tHIs? is there a raTIonAl ExplanaTion thaT
 and a reasonable return.The
propos ed hi sto ric al  bas e pr ice will not,f or e xample, reflect recent  fuel 
p r icei nc rease s.

   T woot he r p ot e nt ial i ssu es aris e as well.  Fi rs t, the tax h a smany of
th e h allmarks ofa u se tax ,i.e . , the  ta x islevied on the  purchase  o f  goods from an o ut -of- state provider fo r  d e livery to anduse in  C a li f o rni a.The
grossre ceipt s  form t h es a l e o f  electricityhave been e x emp t from  s ale s  and
u se ta xf ormore than 5 0 ye ars. Rev.  & Tax .  Code S e ction 6 353. W hil e t hiss ta tu teco u ld, pr esu m abl y, be am en de d, do ings o w ould  be  a m ajorpolicy
depart ure  and a b ig st ep to ward simpos ing sa les t ax  on utility sal es.A
secondcon ce rnis  thep ossibl e i mpa irmentof exis t ing  c o n t ra cts as a result
of  t h e  L egislatu re's m e dd li n g in rat ereg ulat i o n.

    I  was una ble to id en tify an yinstan ce  in  wh ich a stat e impo sed a
wi ndfal l  profit tax on electricity s a le s . 
     T he forgoing  ist he p rodu c tofm y con versa ti o ns last evening with
D ou g Kern er an d a few hours  of LEXISr e s earch. T he i s su e s are complexand
c ould not b e  much de velop ed in th e time av a i lable. T his  ma ter ial i sbest
viewed a s info rm ed "iss uespottin g."   Nev ert he less, I f eel stro ng ly  t ha t
t he pr o posed "T ax " c an  fa irlyb e char acter ized  a sr ate  making . 
V eryTr ul y Yo urs ,C. St ephe n  Da vis Ple ase visit  ht t p:// CT ST rader.c om
The Intern et 's Premier  s ite  for R e c ommendat ions, Education, and po w erful
c har ts &tool s!
  Forsub scribe  or unsubs cribeinstr uc tio n s ,
  p l e as e s ee  the botto m ofthisme ssag e.



- ------------------ - --- ------------- --- ---- - - -- --- - -- - --- -- - --- - - ------------

H otToday: F ut u re s - http:/ / cts Tr ader.co m

____ __Jun e  the 9t h, 2001__ ________-- ---- - - --- ---------- -------- --------- - ----- - -- ----- --- 
CTS H OT  TO DAY:FUTURE S 
By  Nick  Van N ic e
---- ----- -- -------- ----------------------- ------ ----- --_________ Vol u me3, Number  114 __________ _
Goo d mor nin g  ever yone ,  t hep urpos e of CTS Hot T o da y:F u tu res
is to h e l p  yo u pre par e  for t he t rading day ahead. -------------- ---- - - --- --- - ---- -- -------------- --- -- - - --
Nick' sTrading Tip  of theDa y  (06/ 09)
-- ------ ------- - - -- - ------ ---- --- --------- --- -- - ------- -"T r ade in tere st  rates  and c u rren c i es different tha n
tan g i ble c o mmo dityma rkets"Ever  since int erest rateand cu rren cy fu tures w er e laun che dback in th e  early ei ghtie s and l at e se ven ties r espe c t ively , th ey 
ha ve proven t he m se lv e s t o be  supe ri or t rending v e hicles.
Wh y  is thi s?  Is t here a ra t i onal expla nat ion t h a t
 and_a reasonable_return. The
proposed historical base_price will_not,_for example,_reflect_recent fuel
price increases.

_  _   Two_other potential issues_arise_as well. First, the tax has many of
the hallmarks of a use tax, i.e.,_the_tax is_levied_on_the purchase of goods
from an_out-of-state provider for delivery to_and use_in California. The
gross receipts form the sale of_electricity_have been exempt_from sales and
use tax for more than 50 years._Rev. & Tax. Code Section 6353._While this
statute could,_presumably,_be_amended, doing so would_be a major policy
departure and a_big step towards imposing sales tax_on utility sales. A
second concern is the_possible impairment of existing contracts as_a result
of the Legislature's meddling_in rate_regulation.

    _  I_was unable_to identify any_instance in which a state imposed_a
windfall profit tax_on electricity sales.

   __  The_forgoing_is_the product_of my conversations_last_evening with
Doug_Kerner_and a few hours of LEXIS_research._The issues are complex and
could not be_much developed in the_time_available. This material is_best
viewed as informed "issue spotting."_  Nevertheless, I feel strongly_that
the proposed_"Tax" can_fairly be characterized as rate making.


Very Truly Yours, C. Stephen Davis_Please visit http://CTSTrader.com
The Internet's Premier site_for Recommendations, Education, and_powerful
charts &_tools!
_ For subscribe_or_unsubscribe instructions,
_ please see the bottom of this_message.



-----------------------------------------------------------------------------

HotToday: Futures_- http://ctsTrader.com

______June the 9th, 2001__________
-------------------------------------------------------
CTS HOT_TODAY: FUTURES
By Nick Van_Nice
-------------------------------------------------------
_________Volume_3, Number 114___________

Good morning everyone, the_purpose of CTS Hot Today: Futures
is_to help you prepare for_the_trading_day ahead.
--------------------------------------------------------
Nick's Trading Tip of_the Day (06/09)
--------------------------------------------------------
"Trade interest rates and_currencies different than
tangible_commodity markets"

Ever since interest rate and currency_futures_were launched
back in the early eighties_and_late seventies respectively, they
have proven themselves_to_be_superior trending vehicles.

Why is this?_Is there a rational explanation that