October 16, 2002; Kurt Wulff Quoted on Energy Partnerships by Chip Cummins in THE WALL STREET JOURNAL

Energy Partnerships Like Kinder's Could Be Running Out of Steam

HEARD ON THE STREET

........... some investors and analysts are starting to wonder whether Kinder Morgan Energy and other such partnerships are losing steam.......

Critics charge that the steep incentive payments unfairly drain cash from common investors, who often don't read the financial filings describing the payments. The incentive structure "is designed to look innocuous and simple but in reality is a sophisticated stripping of assets from unsuspecting persons, in our opinion," Kurt Wulff, an independent analyst, wrote earlier this year.

Arthur Bugs Baer, a retired money manager in Madison, Conn., likens the payments to incentive fees, which he doesn't typically mind paying if the investment is a good one. But Kinder Morgan Energy's steep incentives are "insane," he says. He considered buying into the partnership earlier this year, but after reading Mr. Wulff's investor newsletter, he balked and even sold off his holding in another MLP...............