FYI - In case you haven't seen this.
---------------------- Forwarded by Mary Hain/HOU/ECT on 02/26/2001 10:06 AM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Ronald Carroll" <rcarroll@bracepatt.com>
02/26/2001 09:35 AM

To: <Christi.L.Nicolay@enron.com>, <daniel.allegretti@enron.com>,
<hfromer@enron.com>, <jsteffe@enron.com>, <mary.hain@enron.com>,
<smara@enron.com>
cc:
Subject: Fwd: Supreme Court Action in FERC Cases

In case you haven't heard, the Supreme Court has granted cert of our and the
state of New York's cert petitions on the extent of FERC's jurisdiction over
transmission facilities.

Date: Mon, 26 Feb 2001 11:18:06 -0600
From: "Jeffrey Watkiss" <dwatkiss@bracepatt.com>
Subject: Fwd: Supreme Court Action in FERC Cases
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_570CFA0B.E081E8A6"

Attached is Lou Cohen's (of Wilmer Cutler) write up of the Supreme Court's
grant of two petitions for certiorari in the appeals of FERC's Order No. 888
on transmission open access.  While too much should never be read into a
grant of certiorari, this seems to be auspicious for Enron and to validate
Joe's conclusion that it would be imprudent for Enron to rest on its victory
in the court of appeals and not oppose proactively New York, et al. who are
asking the Court to expand the native load exception.  It should also be
noted that the broadside against FERC's authority to act (the Dalton cert.
petition), which Enron took the lead in opposing, was rejected outright.
Enron's brief is due in 45 days.  Joe and I shall meet with Lou early next
week to get this process started.  Please call me if you have any questions.
Received: from mcafee.bracepatt.com by bracepatt.com; Mon, 26 Feb 2001
10:39:07 -0600
Received: FROM dcex3.wilmer.com BY mcafee.bracepatt.com ; Mon Feb 26 10:47:51
2001 -0600
X-Proxy: keymaster.bracepatt.com protected
Received: FROM dcex2.wilmer.com BY dcex3.wilmer.com ; Mon Feb 26 11:35:17
2001 -0500
Received: by dcex2.wilmer.com with Internet Mail Service (5.5.2650.21) id
<15T7HGFJ>; Mon, 26 Feb 2001 11:35:17 -0500
Message-ID: <C72E469FD563464EA42AC501F8CCB30704749473@dccl40.wilmer.com>
From: "Cohen, Louis" <LCohen@Wilmer.COM>
To: "Joe Hartsoe (E-mail)" <jhartso@enron.com>
Cc: "Jeffrey D. (Dan) Watkiss (E-mail)" <dwatkiss@bracepatt.com>,  "Killory,
Ted" <TKillory@Wilmer.COM>, "Palansky, IJay"  <IPalansky@wilmer.com>,
"Plotnick, Michael" <MPlotnick@wilmer.com>,  "Cohen, Louis"
<LCohen@Wilmer.COM>
Subject: Supreme Court Action in FERC Cases
Date: Mon, 26 Feb 2001 11:35:04 -0500
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2650.21)
Content-Type: multipart/alternative;
boundary="----_=_NextPart_001_01C0A012.1A1432F0"

Here is a  summary.? I included the cites just in case.? Let me know if you
need  more.
?
The Supreme Court  today granted two petitions for certiorari to review the
D.C. Circuit's decision  in Transmission Access Policy Study Group v. FERC,
225 F.3d 667  (2000).? The Court granted the petition of New York and other
states (New  York?v. FERC, No. 00-568)) to consider?whether FERC may preempt
state  jurisdiction over transmission of energy from generators to retail
customers in  the same state.? (The Court declined other questions?New
York?had  raised.)? The Court also granted the petition of Enron Power
Marketing,  Inc. (EPMI v. FERC, No. 00-809) to consider whether FERC has
jurisdiction to  regulate all transmission in interstate commerce, including
transmission for  bundled retail sales, and whether FERC is obligated under
the Federal Power Act  to eliminate undue discrimination by requiring
transmission-owning utilities to  provide service on the same terms to all
users, including bundled retail  sales.? The cases will be argued together,
probably not before October  2001.


here it is


[IMAGE] [IMAGE] [IMAGE] 	[IMAGE]
 Earn continuous residual income for the rest of your life!  We'll help you do it!  It's easy to turn the internet into your own 24/7 business and earn an executive's salary!  Financial freedom is only a click away! [IMAGE]  	[IMAGE]

[IMAGE]
If you do not wish to receive future mailings from National Brands, click here  to unsubscribe.


Here is the list Marcelo and I put together in September (see attachment at
the bottom).

---------------------- Forwarded by Shona Wilson/NA/Enron on 10/16/2000 05:00
PM ---------------------------

	From:  Shona Wilson                           10/05/2000 12:44 PM

To: Mike Jordan/LON/ECT@ECT
cc:

Subject: Re: action point list

---------------------- Forwarded by Shona Wilson/NA/Enron on 10/05/2000 12:48
PM ---------------------------

	From:  Shona Wilson                           10/02/2000 07:27 AM

To: Paul Wallace/HEL/ECT@ECT
cc: Tim Poullain-Patterson/LON/ECT@ECT, Richard Sage/LON/ECT@ECT, Mike
Jordan/LON/ECT@ECT, Alfred.pennisi@mglondon.com, marcelo.parra@mgusa.com,
Louis.colarusso@mgusa.com, Andy Cornfield, William Morley/EU/Enron@Enron

Subject: Re: action point list

Dear Paul,

Thanks for the update.  Can you liase with Al Pennisi and Marcelo Parra to
look at the R&N information?  We are trying to get a handle on how
comfortable we are outsourcing the majority of the middle office for the US
brokerage business.  Not just settlements, but nearly all functions.  Al is
putting together some information regarding R&N.  Together with Al, Kevin
Rhodes and Marcelo we should be able to come to a recommendation (either the
middle office operations is something we should start to do ourselves, or
that we think it is best to continue to use R&N as an outsourcer for the
brokerage business).

If you want to discuss call me at 713 853 9123.

Regards

Shona

Paul Wallace @ ECT

10/02/2000 03:18 AM
To: Shona Wilson/NA/Enron@ENRON
cc: Tim Poullain-Patterson/LON/ECT@ECT, Richard Sage/LON/ECT@ECT, Mike
Jordan/LON/ECT@ECT, Alfred.pennisi@mglondon.com@ENRON, Mary
Perkins/HOU/ECT@ECT, marcelo.parra@mgusa.com@ENRON,
Louis.colarusso@mgusa.com@ENRON, Andy Cornfield@ENRON, William
Morley/EU/Enron@Enron

Subject: Re: action point list

Hi Shona,

Ideally I think Will Morley (recent hire to London Documentation team) should
be looking after the Documentation area as he is managing the London
side (I will confirm this)

On the Settlements side I am happy to look at the Rolfe & Nowlan side as I
have around 10 years experience using and developing R&N in my
previous employments

thanks

	Enron Capital & Trade Resources Corp.

	From:  Shona Wilson @ ENRON                           29/09/2000 19:08

To: Tim Poullain-Patterson/LON/ECT@ECT, Richard Sage/LON/ECT@ECT, Mike
Jordan/LON/ECT@ECT
cc: Alfred.pennisi@mglondon.com, Mary Perkins/HOU/ECT@ECT,
marcelo.parra@mgusa.com, Louis.colarusso@mgusa.com, Andy Cornfield, Paul
Wallace/HEL/ECT@ECT
Subject: action point list

As requested, here is the action point list Marcelo & I put together for NY.

Best regards

Shona


You need to give yourself some!

 -----Original Message-----
From: 	Kitchen, Louise
Sent:	Friday, October 12, 2001 5:13 PM
To:	Calger, Christopher F.; Milnthorp, Rob; Tycholiz, Barry; Lagrasta, Fred; Curry, Mike; Jacoby, Ben; Luce, Laura; Vickers, Frank W.; Llodra, John; Kroll, Heather; Redmond, Brian; Forster, David; Williams, Jaime; Miller, Don (Asset Mktg); Josey, Scott; Mrha, Jean; Baughman, Edward D.
Cc:	Killen, Faith
Subject:	End of quarter origination numbers

Q3 now over, you will each be receiving in the internal mail a copy of the origination numbers associated with each of your groups.  Please could you ensure the numbers are both;

(i) Correct, and
(ii) Correctly allocated

Should employees have left the group or company please do not allocate the amount to another originator as this will distort the numbers, just leave the name of the employee and number in place although they have left.   These numbers will be used as a (obviously only one component) component of performance review.  As you know we also monitor the soft targets so please ensure these are correct too.   If you want to check your progress on soft targets - these are available from Faith.

Please send all alterations to Faith Killen or call her on 30352.

Thanks

Louise


Coal Scores With Wager on Bush; Belief That Mineral Is Part of 'Balanced'
Energy Policy Lifts Industry Outlook
The Washington Post, 03/25/01

Energy trading floors represent ground zero in electricity crisis
Associated Press Newswires, 03/25/01

India: Centre's interest liability on dues to Enron starts
Business Line (The Hindu), 03/25/01

Victoria Station's pounds 250m facelift
The Independent - London, 03/25/01

Standoff may delay renegotiation on Enron project
The Times of India, 03/25/01

Deal to sell PGE may fall through
Associated Press Newswires, 03/24/01

Govt clears FDI proposals worth Rs 683 crore
The Economic Times, 03/24/01

Nigeria blames US firm for delay in power project: report
Agence France-Presse, 03/24/01

Enron deal with Sierra likely a bust / Buyer of Portland General having
trouble raising cash
Houston Chronicle, 03/24/01

Market rebounds, but not stability
Houston Chronicle, 03/24/01

Midwest to face high gas prices again / Supply of anti-smog component already
one-quarter below last year
Houston Chronicle, 03/24/01

COMPANY NEWS
ENRON SALE OF UNIT TO SIERRA PACIFIC IS DOUBTED
The New York Times, 03/24/01

Operators of California Power Grid Testify of System Abuses
KRTBN Knight-Ridder Tribune Business News: The Orange County Register -
California, 03/24/01

Santa Clara Plans for More Power / Generators to be built on existing plant
sites
The San Francisco Chronicle, 03/24/01

Calif. Crisis, M&A, Gas To Dominate Talk At Howard Weil
Dow Jones News Service, 03/23/01

A Section
Coal Scores With Wager on Bush; Belief That Mineral Is Part of 'Balanced'
Energy Policy Lifts Industry Outlook
Dan Morgan
Washington Post Staff Writer

03/25/2001
The Washington Post
FINAL
A05
Copyright 2001, The Washington Post Co. All Rights Reserved

Few businesses placed as big a bet on Republicans in the last election as the
coal industry, which gave 88 cents out of every dollar in campaign
contributions to GOP candidates or organizations. Two months into the Bush
administration, that wager has begun to pay off.
President Bush has jettisoned a campaign promise to require coal-burning
power plants to reduce emissions of carbon dioxide, after heeding industry
warnings that such action could "kill coal." Now, industry officials who
worked for this week's Environmental Protection Agency decision to revoke a
Clinton administration crackdown on arsenic in drinking water are taking aim
at more than two dozen pending rules regulating substances from coal mine
dust and ozone to diesel particulates.
In the GOP-controlled Congress, lobbyists for coal companies, railroads and
electric utilities are mobilizing behind tax credits, subsidies and
regulatory exemptions for coal-burning utilities.
The emergence of coal from the political shadows is due in part to Bush's
conviction that the mineral, which is used to generate half the nation's
electricity, is crucial to preventing the spread of the California energy
crisis.
Coal "didn't have a very friendly forum in this town" during the Clinton
administration, an environmental official said. The Clinton administration
favored rigorous enforcement of clean air controls on emissions by
coal-burning utilities and encouraged expansion of power plants using cleaner
natural gas. The Bush administration, in a tilt back the other way, contends
that an expansion of coal-generated power must be part of the "balanced"
energy policy needed to provide ample electricity at reasonable prices.
But coal's new strength also rests on the enhanced influence, in the
aftermath of last year's election, of a network of interests, such as
electric utilities and railroads, that strongly oppose lessening the
country's dependence on coal.
In late February, senior executives of coal, utility and railroad companies
descended on Washington under the auspices of an informal group, the
Coal-Based Generators, to lobby for legislation providing tax credits and
other subsidies for utilities using experimental "clean coal" technologies.
Among them were Irl Engelhardt, chairman of the Peabody Group, the nation's
largest coal enterprise, whose holding company contributed $250,000 to the
Republican National Committee in July. Engelhardt himself served as an energy
adviser to the Bush-Cheney transition team.
Meanwhile, coal, rail and power companies such as Peabody Holdings Inc.,
Burlington Northern/Santa Fe, and Southern Co., provided funding last year to
start Americans for Balanced Energy Choices, to develop grass-roots support
for coal.
"The market realities have changed, and the political dynamics have changed
in Washington," said the group's president, Steve Miller, a Democrat who was
Bill Clinton's campaign organizational chairman in Kentucky in 1992. "People
have no idea of the environmental improvement the coal industry has made."
To get that message across, Americans for Balanced Energy Choices has set up
a Web site and prepared a media advertising budget of several million dollars
to finance what Miller says will be "a longtime conversation with opinion
leaders across the country." The purpose will be to counter the influence of
environmental organizations.
Separately, the Coalition for Affordable and Reliable Energy, made up largely
of trade associations, has been set up to lobby in Washington and has begun
running advertisements in Capitol Hill publications.
Electric utilities and their executives and employees last year gave $18.4
million to candidates and parties, of which $12.4 million went to
Republicans, according to the Center for Responsive Politics, a campaign
research group. Southern Co., one of the nation's largest coal-burning power
producers, opposes the Kyoto protocol, under which signatory nations,
including the United States, agreed to reduce greenhouse gas emissions to
1990 levels. The Senate has never ratified the agreement.
Southern Co. is represented in Washington by the lobbying firm headed by
former Republican National Committee chairman Haley Barbour, a close
associate of Senate Majority Leader Trent Lott (R-Miss.).
In the House, Rep. Joe Barton (R-Tex.), chairman of the subcommittee with
jurisdiction over clean air and energy, has vowed that legislation containing
such restrictions will "never" pass through his panel. Until Barton's
northeast Texas district was reconfigured in 1994, it contained strip mines
and coal-burning power plants belonging to Texas Utilities Co., the third
largest electricity producer in the United States. Barton has continued to
receive funds from its political action committee.
The coal industry itself has made use of its own extensive network of
connections. The Interior Department's newly appointed deputy secretary is J.
Steven Griles, who has lobbied for coal and gas companies ranging from
Pittston Coal Co. to Dominion Resources.
The Bush-Cheney transition team was sprinkled with industry officials,
including Engelhardt and Steven Chancellor, president and chief executive of
Indiana-based Black Beauty Coal Co. Chancellor and his company were major
Republican contributors, and he hosted a fundraiser in August at his home
attended by former president George Bush and vice president Dan Quayle,
according to the Indianapolis Star.
West Virginia coal executive James "Buck" Harless raised more than $100,000
for President Bush and chipped in $100,000 to the Bush-Cheney Inaugural Fund,
as did Peabody Holding Co. and Southern Co.
The coal industry may enjoy even better connections in Congress. Along with
Sen. Robert C. Byrd (D-W.Va.), Sen. Mitch McConnell (R-Ky.) has advanced
legislation providing billions of dollars in tax credits for utilities, and
indirectly benefiting contributors to GOP campaign committees he has headed.
In the debate over global warming, coal interests have prevailed over
environmental organizations and corporations that have been moving toward
acceptance of the threat of carbon dioxide emissions. This small but growing
group now includes BP Amoco PLC, Enron Corp., Entergy Corp. and American
Electric Power, an Ohio-based coal-burning utility.
Enron's chief executive, Kenneth Lay, one of Bush's most generous campaign
supporters, has urged the president to create a trading system for carbon as
a way of limiting emissions into the atmosphere. But Lay was not given
advance notice of Bush's decision ruling out mandatory carbon controls,
sources said.
A spokesman said Lay was "somewhat disappointed that we don't have a process
in place to deal with what he thinks is going to be a significant issue."

http://www.washingtonpost.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Energy trading floors represent ground zero in electricity crisis
By MICHAEL LIEDTKE
AP Business Writer

03/25/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - In Houston, it's simply known as "the power corner."
Separated by just a few city blocks, four major power wholesalers run
Byzantine trading systems that sway energy prices across the nation with
minimal oversight from the government.
The Houston trading floors run by Enron Corp., Reliant Energy, Dynegy Inc.
and Duke Energy represent ground zero in a power crisis threatening the
quality of life in much of the Western United States this summer.
By seizing upon the opportunities created by deregulation and leveraging the
Internet, the Houston traders have introduced the ruthlessness of the free
market into the once-sedate power industry.
In the process, they have driven two California utilities to the financial
brink and electrified the electricity business, just as junk bond traders
ignited Wall Street in the 1980s and venture capitalists fueled Silicon
Valley in the 1990s.
After raking in billions of dollars for their companies last year, the energy
traders are emerging as the first business hotshots of the new millennium.
"They are extremely good at what they do," said Severin Borenstein, director
of the University of California at Berkeley's energy institute.
"There are guys on Wall Street that spend all their time doing extremely
complex calculations on bond yields and figuring out how to make the most
money on the spreads. These traders (at the power companies) are doing the
same thing with the energy market."
As they become more sophisticated, the power marketers are moving much of
their muscle online, where they are proving more adept at e-business than
most of Silicon Valley's fallen Internet companies.
Enron handles much of its trading business on a Web site launched in November
1999. The company describes Enrononline.com as the world's biggest e-commerce
site, based on the completion of 548,000 transactions, totaling $336 billion,
with 3,000 customers in 2000.
Following Enron's lead, Duke, Reliant and another major California generator,
Mirant Corp., banded together with Wall Street investment banks Goldman Sachs
and Dean Witter Morgan Stanley to launch IntercontinentalExchange.com.
The 7-month-old site reported daily trading volumes of 3 million megawatt
hours in late February.
San Diego attorney Michael Aguirre believes the power companies are using the
password-protected online exchanges to secretly share information and control
the power supply to manipulate prices. Aguirre has spent the past six months
scrutinizing the trading operations as he pursues a lawsuit alleging that the
power generators broke antitrust laws.
"The whole trading thing is just a front that lets them game the market," he
said. "They can get away with it because no one (outside the industry) can
figure out what they are doing."
Enron says its trading system, particularly the online exchange, has resulted
in fairer and more efficient markets. The allegations of market abuse are
"just some sour grapes from people who didn't come up with the idea in the
first place," Enron spokesman Eric Thode said Friday.
One of the biggest distinctions between the Texas energy traders and the Wall
Street securities traders is how they are regulated.
The Securities and Exchange Commission and the Commodities Future Trading
Commission oversee the trading of most of the nation's key markets. But the
power traders answer to the Federal Energy Regulatory Commission, an agency
with little training in the sophisticated financial instruments deployed by
these marketers.
The power traders aren't just holding California over a barrel. Other states
are paying even higher prices - a factor that will likely further reduce
supplies for California in the months ahead.
In a series of recent deals disclosed to The Associated Press by a major
marketer, energy traders charged California $330 to $360 per megawatt hour
for July electricity. They fetched $415 per megawatt hour in a key Pacific
Northwest market and $495 per megawatt hour in a major Arizona market for
contracts covering the same time.
A similar price disparity occurred for August electricity contracts.
California paid top price of $395 per megawatt hour while the Pacific
Northwest market paid $460 per megawatt hour and the Arizona market paid $535
per megawatt hour.
As the nation's largest power broker, Enron is the kingpin of the energy
traders.
Spread through seven floors at Enron's Smith Street headquarters in Houston,
the energy specialists among the company's 1,500 traders try to divine where
prices are headed, and then swap electricity and natural gas contracts like
stocks and bonds.
"You can walk into that trading room and if you didn't already know that you
were on Smith Street in Houston, you would swear you were on Wall Street in
New York," said Shannon Burchett, chief executive officer of Risk Limited
Corp., a Dallas energy consultant.
Although energy is its main business, Enron also trades many other
commodities, including paper, lumber, steel and broadband access to the
Internet.
Enron's trading strategy remains a mystery even to industry analysts, partly
because the company considers its techniques to be proprietary.
Using a team of mathematicians and meteorologists, Enron's traders try to
identify places where the company can buy electricity at the cheapest price
and then deliver it for a higher price somewhere else. The traders post the
prices at which it will buy and sell electricity.
Enron's trading savvy yielded a big payoff last year.
The trading business posted an operating profit of $1.6 billion, up 160
percent from $628 million in 1999. When electricity and natural gas prices
soared to record highs in the fourth quarter, Enron's trading profit more
than tripled, from $151 million to $538 million.
Without providing specifics, Enron officials said the profits poured in from
all over the country, not just California.
"Contrary to what you may hear or read, our success is linked to efficient
markets, not higher prices in California, or anywhere else for that matter,"
Steve Kean, an Enron executive vice president, assured the U.S. Senate during
January testimony. "What we are interested in is competitive and
well-functioning markets. Our financial success is not built on California's
back."
More power companies are trying to emulate Enron's success by investing in
elaborate trading floors and aggressively recruiting the brightest MBAs out
of graduate schools.
Williams Energy emerged as one of its industry's most profitable companies
last year by capitalizing on electricity price swings from its
21,000-square-foot trading floor in Tulsa, Okla. The operation includes a
70-foot wall filled with secret data and two 30-foot data walls breaking out
the latest information on energy futures.
Even as its California utility sank deeper into debt with the electricity
generators, PG&E Corp. continued to build a 137,000-square-foot trading floor
in Rockville, Md., to trade electricity. PG&E's worsening financial woes
finally forced the company to delay the expansion late last year.
AES Corp. discovered the increasingly important role that trading floors play
in the profit equation last year. The Arlington, Va.-based company owns three
California power plants, but said it didn't make any money from them last
year because of a contract that turns over the electricity sales to Williams.
The arrangement left AES with an $11 million loss from its California
operations last year. Williams doesn't break out its earnings by region, but
its energy services division nearly tripled its profit in 2000 to $1.56
billion.

With AP Graphic POWER PLAYERS

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

India: Centre's interest liability on dues to Enron starts

03/25/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, March 24. THE Government of India would incur an interest liability
of eight per cent on the Rs 229-crore due that it owes Enron India, starting
today. The company had invoked the Centre's counter-guarantee to recover the
amount due from the Maharashtra State Electricity Board (MSEB).
The Centre has one month to honour the guarantee. If no payment is made
within 15 days, interest must be paid for the remaining two weeks.
According to Union Power Ministry officials, the Centre will have to pay
interest at the rate of 1 per cent above the Bank Rate, currently at 7 per
cent.
In addition to the interest to be paid by the Centre for the guaranteed
amount, an interest of "reference rate plus 2 per cent" is already being
charged on the outstanding bills. The reference rate is calculated according
to a separate formula in the power purchase agreement (PPA).
According to the officials, "the Government will pay the money only after the
Union Law Ministry reviews the dispute between MSEB and Dabhol Power Company
over the Rs 401-crore penalty." This could mean a long wait for DPC and may
also end up in international arbitration, say senior MSEB officials.
MSEB has asked DPC to pay a penalty of Rs 401 crore for failing to make power
available at 90 per cent plant load factor (PLF) within three hours (as per
the power purchase agreement) of receiving the hourly requirement from MSEB.
The "default" happened on January 28 when one of MSEB's units tripped and it
required more power at short notice.
"We have asked them to adjust their bills for December, January and February
against the penalty," said Mr Vinay Bansal, Chairman, MSEB.
The board owes DPC a total Rs 341 crore for the three months.
While Enron officials have asked MSEB to at least pay the December dues,
before the "default" occurred, the board still holds that DPC should "adjust"
its bills against these charges.
"The interests will be adjusted once the Government makes payments.
MSEB will have to ultimately pay the amount as the Centre will recover the
dues from the State, and it, in turn, from us," said Mr Bansal.
Meanwhile, MSEB is "considering" paying its February bill to "ensure DPC's
business is not disrupted" in case of delay.
"We have received information that there may have been another default by DPC
during February. But that matter will be discussed only in May. We will
decide then if DPC is liable for another penalty," he said.
And, an Enron official said the "company might consider waiving the interest
on the guaranteed amount (Rs 229 crore) as we have been bending backwards
anyway, as far as payments are concerned."
Archana Chaudhary

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business
Victoria Station's pounds 250m facelift
HEATHER TOMLINSON

03/25/2001
The Independent - London
FOREIGN
1
(Copyright 2001 Independent Newspapers (UK) Limited)

Railtrack is planning a giant office and retail development at Victoria
Station, London, estimated to be worth at least pounds 250m.
The rail group is one of four companies planning major property developments
in Victoria that could transform the area and compete with a similar projects
at Paddington, west London.
The developments, also proposed by Grosvenor Estates, Howard Ronson
Organisation (HRO) and Land Securities, total 1.4m square feet, larger than
the Canary Wharf tower in London's Docklands.
Railtrack is understood to be working on a masterplan for the site, which
would see the development of up to 500,0000 square feet of space built above
and around the station.
Railtrack has one of the largest property development programmes in the UK.
Valued at pounds 2bn, it dwarfs the development programme of Land Securities,
the UK's largest quoted property company.
Run by John O'Brien, Railtrack's property department is also planning a
42-storey tower at Paddington Station and a huge mixed- use development with
Pillar Property at Cricklewood, north London.
At Victoria, Railtrack will launch a survey with the three other developers
to gauge demand from potential tenants.
But the developers could have an early boost. Enron, the US energy giant that
pulled out of a deal to move to Canary Wharf last year, is now understood to
be keen to expand its offices in Victoria.
Huge development schemes like the ones planned in Victoria are notoriously
tricky to execute. But property experts believe the companies behind the
plans have sufficient clout to carry them off.
Grosvenor Estates, the Duke of Westminster's private property company, is one
of the largest land owners in London's West End. HRO is owned by Howard
Ronson, estranged cousin of property tycoon Gerald Ronson, and has become a
top player in UK development. Land Securities, valued at pounds 4.5bn, is a
FTSE 100 company.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Standoff may delay renegotiation on Enron project
Vinu Lal

03/25/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: The much-touted renegotiation on the Dabhol Power project has
stumbled upon a fresh controversy, which is likely to further delay the
proceedings.
While Enron as well as the Maharashtra State Electricity Board (MSEB) want
officials from the Union ministries of power and finance to be present at the
renegotiation hearings, the Centre has turned down the request. Due to this,
though it is over two weeks since the terms of reference of the review
committee were amended to include renegotiation of the power purchase
agreement, no hearing has been conducted with the Dabhol Power Company (DPC).
Sources said that due to this standoff the committee is unlikely to submit
its report within first week of April according to the terms of reference.
An Enron spokesperson said, ``We have made our stand very clear before the
committee that for a renegotiation of a contract signed by various parties,
including the government of India, the government of Maharashtra and the
Central Electricity Authority (CEA), all parties should be part of the review
process.''
P.S. Paunikar, technical director, MSEB, said, ``We had requested top
officials from the ministries of power and finance and the CEA to be present
during the renegotiation meetings with the DPC. But the Centre has declined
to depute any official for this purpose.''
DPC's stance has surprised industry observers since during the previous
renegotiation committee proceedings under Kirit Parikh, the company had not
set any conditions of this sort. The Centre has justified its stand not to
depute any officials stating that review of Dabhol project is strictly a
state affair and that it has no role to play in it.
Meanwhile, sources say that a preliminary draft report of the committee is
already finalised, but it has not incorporated the amendments made on March
9. According to the amendments made by a government order, the committee has
been empowered to ``renegotiate a new tariff structure and suggest measures
to be taken to safeguard the interests of the state government and
electricity consumers''.
However, chief minister Vilasrao Deshmukh is said to be adamant on reviewing
the project and the committee may call the DPC for renegotiation talks
ignoring the conditions set by the firm.
Interestingly, the power major has openly stated that it will not give
confidential documents to the committee, which are crucial for a thorough
review of the Dabhol project.
Succumbing to pressure from the Left allies of the DF government, Mr Deshmukh
had announced an amendment of the terms of reference of the Godbole
committee.
Though committee members were unavailable for comment, sources added that
work on drafting the report had started on March 7 since the government had
still not specified clearly the need to renegotiate the agreement then.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Deal to sell PGE may fall through

03/24/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

PORTLAND, Ore. (AP) - A deal to sell Portland General Electric Co. to
Nevada-based Sierra Pacific Resources for $3.1 billion is in jeopardy because
Sierra Pacific might not meet the financial requirements necessary for the
purchase, a spokesman said Saturday.
Executives from PGE's parent company, Enron Corp. of Houston, held a
conference call with investors Friday to discuss the utility's sale, said
Mark Palmer, Enron spokesman. The executives also dismissed rumors of a
layoff in their broadband division, he said.
"There were three or four areas of noise about stock and concern that the
Portland General-Sierra Pacific transaction won't take place," Palmer said.
"CEO Jeff Skilling said the odds of that deal being closed are at 5 percent."
Palmer said the reason hinges on Sierra Pacific's financial situation. It
cannot buy Portland General until meeting requirements on debt limits and
common stock values set by the Securities and Exchange Commission.
"There's some restructuring language in Nevada that would not allow Sierra
Pacific to sell some of their assets," Palmer said. "Sierra is concerned the
SEC will not approve the deal unless they're able to raise cash by selling
these assets."
Earlier this month, Sierra Pacific's parent company, Las Vegas-based Nevada
Power Co., also told The Las Vegas Sun the deal with PGE would likely fall
through because of the financial problems.
The Sun reported Saturday that Portland General's sale to Sierra Pacific
likely won't be completed due to a California law that bars public utilities
from shedding generators until 2005 because of an electricity shortage.
Palmer would not comment on other buyers interested in the utility.
He said Enron would continue working with Sierra Pacific until May 5, at
which time either company can call off negotiations. Enron announced the sale
in 1999, after buying the company in 1996.
"It's not like either company is dropping it," Palmer said. "It's entirely in
the hands of Sierra Pacific right now."
Scott Simms, a spokesman for PGE, said Portland General has been excluded
from most of the discussions.
"We are the child and Enron and Sierra are the parents and it's sort of like
they're talking about custody issues," he said. "There's always discussion
between the two parties. We aren't privy to those discussions and probably
shouldn't be."
PGE supplies power to 728,000 Oregonians, Simms said. If successful, the
merger between PGE and Sierra Pacific would create the third-largest utility
in the West, serving 1.7 million customers in Oregon, Nevada and California.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Govt clears FDI proposals worth Rs 683 crore
Our Bureau

03/24/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

NEW DELHI
COMMERCE and Industry Minister Murasoli Maran on Friday cleared 48 foreign
direct investment proposals involving inflows worth Rs 683 crore.
Proposals cleared include a Rs 230-crore project of Broadband Solutions for
ISP services, Rs 148.03 crore proposal of Tamil Nadu Industrial Development
Corporation and Rs 95.52 crore proposal of Lafarge India.
Other major proposals cleared by the government include those of Housing
Development Finance Corporation, Akzo Nobel Chemicals International BV of The
Netherlands, BNP Paribas, TotalFina Elf and Saloman Smith Barney India.
Broadband Solutions Pvt Ltd, an Enron group promoted project, has been
allowed to buy out its joint venture partners to increase stake to 100 per
cent and infuse additional equity to the extent of Rs 230 crore.
TIDCO has been allowed to increase foreign equity stake in a venture that is
setting up a hi-tech industrial park to 99 per cent from the existing level
of 89 per cent. This will see infusion of Rs 148.03 crore into the venture.
Maran has also cleared the proposal of Financiere Lafarge of France to
increase stake in Lafarge India Ltd to 12.48 per cent from the existing level
of 4.61 per cent.
The additional shares would be acquired from HDFC and two investment
companies for Rs 95.52 crore. With this, the total holding of the French
cement major will go up to 73.13 per cent in its Indian subsidiary.
HDFC has been allowed to allot 26 per cent equity stake to Standard Life
Investments of Scotland for Rs 56.60 crore for portfolio management services,
management and advisory services.
Akzo Nobel Chemical has been allowed to increase equity stake in a project to
74.98 per cent from the existing level of 40 per cent.
The Dutch company will infuse Rs 34.20 crore for the additional stake.
BNP Paribas Equities has been allowed to issue preference shares worth Rs 26
crore for its non-banking financial services.
The 5 per cent redeemable non-cumulative non-convertible preference shares
would be subscribed by BNP Equities Mauritius. Saloman Smith Barney India,
too, has been allowed to increase preference equity.
The Citibank group entity will Rs 24.91 crore for additional preference
equity in the Indian subsidiary.
TotalFinaElf has been allowed to incorporate a 100 per cent owned subsidiary
with investment of Rs 23 crore to provide technical, managerial and
operational support services in the development of projects and
infrastructure facilities for oil, gas and power sector.
Among other proposals cleared today was that of Bayer Industries to increase
its stake in Bayer India Syntans, a venture engaged in manufacturing and
marketing of leather chemicals and auxiliaries, from 70 per cent to 100 per
cent.
Bayer will buy out its joint venture partner Indian Syntans Group Rs 4.46
crore.
British Petroleum has been allowed to increase its holding in Tata BP
Lubricants to 99 per cent from the existing level of 50 per cent. BP will
acquire the shares for Rs 6.37 crore.
Selviac Nederland BV has been allowed to increase its holding in Godrej
Pillsbury to 56.50 per cent from the existing level of 51 per cent for a
consideration of Rs 5.61 crore. Godrej Pillsbury manufactures wheat flour,
cake/dessert mixes and canned vegetables.
The government has also cleared applications of several companies for
amendment to their foreign collaboration approvals. These include
applications of LG Chemicals, IBM India, Osram GmbH and Nestle India.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Nigeria blames US firm for delay in power project: report

03/24/2001
Agence France-Presse
(Copyright 2001)

LAGOS, March 24 (AFP) - Nigeria has blamed US power group Enron for delays in
executing an electricity project in the economic capital Lagos, a press
report said Saturday.
The 800-million-dollar investment deal to supply electricity to the city grid
was signed in December 1999 between Lagos State, the Nigerian state-run
electricity operator NEPA and US power group Enron Inc.
Under the terms of the agreement, Enron was expected to complete the first
phase of the project by December last year.
A statement from the office of Nigeria's Power Minister Segun Agagu, cited by
the newspaper This Day, accused the US company of not meeting the deadline.
"NEPA and the government have exercised great patience and restraint in the
face of these delays and breaches of contract," the statement said.
It said however, that Nigeria "will continue to honour all obligations and
commitments that are genuinely and transparently negotiated."
Enron late last year shipped a 90 megawatt floating power plant to Nigeria,
which was brought in on barges.
The company also agreed an 800 million dollar investment in a new 540
megawatt power plant to be built north of the city.
The two plants were to boost the currently inadequate power supplies
available to the country's economic capital.
joa/nb

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

BUSINESS
Enron deal with Sierra likely a bust / Buyer of Portland General having
trouble raising cash
MICHAEL DAVIS
Staff

03/24/2001
Houston Chronicle
3 STAR
1
(Copyright 2001)

Enron Corp.'s $3.1 billion deal to sell its regulated electric utility
Portland General Electric to Sierra Pacific Resources will likely fall
through because of regulatory problems that leave it short of cash, officials
for the companies said Friday.
Jeffrey Skilling, Enron's chief executive, said in a conference call Friday
that there is only a 5 percent probability that Sierra Pacific's purchase of
Portland General will be closed.
A Sierra Pacific Resources spokesman confirmed that the deal is in trouble.
"It's going to be very difficult for the transaction to be completed," said
Karl Walquist, spokesman for Sierra Pacific in Reno, Nev.
Enron announced the deal to sell the utility that serves the Portland, Ore.,
region in November 1999. The company had been one of the first natural gas
and power marketers to buy a regulated electric utility. Enron paid $1.8
billion for the company in 1997 and assumed $1.1 billion in debt.
If the deal falls through, it isn't likely to pose any big problems for Enron
.
Portland General has consistently posted profits for Enron - although much
less than the company's natural gas and power marketing operations - and
analysts say it should not be hard to find another buyer.
When it bought Portland General, Enron also acquired Portland General's
fledgling telecommunications business. That small division of the Portland
utility was the seed for Enron's broadband operations, one of the company's
most promising new lines of business.
Enron's shares have regained some of the ground they lost in the past two
weeks. Enron closed Friday at $59.40, up $4.37.
The Portland General deal falling through is the second blast of bad news
that Enron has sustained recently. Enron and Blockbuster announced recently
that they had called off their plans to team up to provide movies on demand.
The bad news and the overall market decline trimmed about 30 percent from the
value of Enron's shares over the past two weeks. Enron's shares closed as low
as $55 earlier this week. On Feb. 14, the same shares closed at $80.
The company said earlier this week that it expects profits of $1.70 to $1.75
a share this year.
Enron raised its 2001 profit estimate in January, citing growth in European
and North American trading and more business from its fiber- optic network.
It previously expected to earn $1.60 to $1.70 a share.
Sierra Pacific has utilities that serve southern Nevada and the Lake Tahoe
area.
The company posted a net loss of $39.8 million for the year 2000, blaming the
loss on the high cost of power it bought on wholesale markets. The company
has not been able to recover those costs through higher rates as the tight
power markets in California have pushed up prices in neighboring states.
The Portland General sale is in jeopardy because the company may not be able
to raise the money it needs to close the deal.
Nevada has not opened its markets to customer choice. The problems California
experienced after it opened its electricity markets spooked Nevada lawmakers
so badly that they have delayed a plan to open their state in September.
Delaying the deregulation means Sierra Pacific will not be able to sell a
Nevada power-plant stake it needed to raise cash to buy Portland General.
Even if the deal with Sierra Pacific falls through, however, there are other
buyers waiting in the wings, said Donato Eassey, energy analyst with Merrill
Lynch Global Securities in Houston.
"There is a laundry list of folks standing in line to buy Portland General,"
Eassey said. "They will probably just continue to run those assets
efficiently and wait until another buyer comes along."
Skilling said Portland General is making money, and Enron still is willing to
sell the Oregon utility.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

BUSINESS
Market rebounds, but not stability
Houston Chronicle News Service

03/24/2001
Houston Chronicle
3 STAR
1
(Copyright 2001)

NEW YORK - Battered prices and fresh memories of a remarkable rally attracted
bargain hunters on Friday to pick up a wide array of the stock market's
offerings.
The nation's largest technology companies posted strong gains, and the Dow
Jones industrial average put some distance between itself and the definition
of a bear market, which it had temporarily dropped below on Thursday before
rebounding from a steep decline.
But as corporate earnings continue to erode and economic views only grow
murkier, modest reversals and even more wild swings seem likely before stock
prices settle on a consistent direction again, market analysts said.
"I think these kind of market swings are going to be typical," said David
Henwood, chief investment officer for Raymond James & Associates. "Is there
anything out there on the horizon to cause you to believe there's any
sustainability to it?"
The Dow gained 115.30 points, or 1.2 percent, to close at 9,504.78, with a
strong contribution from its technology components.
Despite Thursday's late rally and Friday's gains, the Dow is still down
318.63 points, or 3.2 percent, for the week.
"The market still appears to lack confidence and conviction," said Alan
Ackerman, market strategist for Fahnestock & Co., a brokerage firm.
"Corporate earnings visibility keeps getting pushed further and further
back."
Meanwhile, the technology-heavy Nasdaq composite index rose 30.98 points, or
1.6 percent, to 1,928.68, bringing its gain for the week to 2 percent.
And the Standard & Poor's 500-stock index gained 22.25 points, or 1.99
percent, to 1,139.83, leaving it down 1 percent for the week.
In part, the stock market's newfound strength seemed to reflect a sort of
afterglow following the Dow's rally Thursday afternoon.
The confidence spread to the technology sector, where stocks have been
battered more than 60 percent from levels of a year ago.
"Eventually you just say these things are just too cheap to sell," said James
Crawford, a portfolio manager at Trevor Stewart Burton & Jacobsen. "We could
be looking at a half-decent rally. Maybe not back to the old highs, but at
least back to something you could make a little money on."
Microsoft, a leading Nasdaq stock as well as a Dow component, gained $2.56,
to $56.56, while Dell Computer rose $1.19, to $27.44.
Buyers also seemed unfazed by Motorola's announcement that it would lay off
4,000 workers. The struggling wireless phone maker already had announced
18,000 job cuts this year. Its shares rose 31 cents, to $15.99.
Shares of Enron Corp. surged nearly 8 percent as Chief Executive Officer
Jeffrey Skilling assured analysts there are no layoffs planned for the
company's broadband division. Enron shares began plunging this week because
of layoff rumors, setting a 52-week low of $51.51 before rebounding. Enron
closed up $4.38 at $59.40.
However, Immunex fell $7.25, or 38.4 percent, to $11.62, after the
biotechnology company said clinical trials of its treatments for chronic
heart failure and asthma had failed, dealing a blow to the company's effort
to expand its product line beyond its treatment for rheumatoid arthritis.
Advancing issues outnumbered decliners nearly 2-to-1 on the New York Stock
Exchange and the Nasdaq Stock Market. The Russell 2000 index, which tracks
the shares of smaller companies, rose 10.47 to 443.27.
Consolidated volume, which includes all NYSE-listed shares, came to 1.58
billion, down sharply from the near-record 2.04 billion traded Thursday.
The 30-year Treasury bond declined 20/32 point to yield 5.31 percent, up from
5.26 percent a day earlier.
The dollar was quoted at 122.60 Japanese yen in late New York trading, down
more than a yen from 123.63 Thursday. The euro closed at 88.85 cents,
slightly higher than its 88.75 cents Thursday.
The dollar fell to 9.575 pesos from 9.620. The peso rose to 10.4439 cents
from 10.3950.
In Mexico, the bolsa closed 0.316 percent lower, down 17.81 points at
5,618.67.
Overseas markets were higher Friday. Japan's Nikkei stock average closed up
2.8 percent. In Europe, Germany's DAX index rose 2.9 percent, Britain's FTSE
100 advanced 1.6 percent, and France's CAC- 40 climbed 2.6 percent.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

BUSINESS
Midwest to face high gas prices again / Supply of anti-smog component already
one-quarter below last year
Reuters News Service

03/24/2001
Houston Chronicle
3 STAR
2
(Copyright 2001)

NEW YORK - Supplies of the key blending component for U.S. anti- smog
gasoline are running nearly a quarter below this time last year, setting the
stage for another summer pump price spike, the Energy Information
Administration said this week.
Stocks of methyl tertiary butyl ether, or MTBE, an additive used by refiners
to blend cleaner-burning reformulated gasoline required in a third of the
nation's pumps, were at 7.96 million barrels in February or 22 percent below
year-ago levels, the statistics branch of the Department of Energy said.
Stock levels at this time of the year are crucial because most refiners start
gearing up to blend the summer gasoline grades in March.
"We're certainly starting off behind the eight ball," said one Houston-based
consultant.
The supply crunch is the result of the trickle-down effect of the record-high
cost of natural gas, from which MTBE is derived.
A quadrupling of natural gas prices in December and January from the previous
year spurred producers to profit more by selling the pure gas to power
companies instead of stripping out the methanol and butane needed for MTBE.
Several of the country's major producers of MTBE were either shut down or
operating at severely reduced capacity from December to February, including
Enron Corp., Valero Energy Corp. and Global Octanes Corp.
As a result, the year started with around 8 million barrels, or 14 percent
less than last January's supplies, which industry analysts already considered
tight a year ago.
Although natural gas prices eased last month and allowed MTBE plants to come
back up, there were problems in restarting several of the facilities after
remaining idle for a month or two.
Last year's Midwest gasoline spike came amid new environmental rules imposing
more stringent regulations for a new reformulated grade called RFG 2.
This year, industry sources say the outlook looks just as expensive for the
consumers in the Midwest, especially after the closure of refiner Premcor's
80,000 barrel per day Blue Island refinery outside Chicago. The defunct
plant's production used to provide Chicago with about half of its cleaner
gasoline.
In an attempt to steer clear of volatile prices, the Environmental Protection
Agency said last week it will relax its emission standards from gasoline in
Chicago and Milwaukee, which basically allows more ethanol - the corn-based
alternative oxygenate to MTBE.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business/Financial Desk; Section C
COMPANY NEWS
ENRON SALE OF UNIT TO SIERRA PACIFIC IS DOUBTED
Bloomberg News

03/24/2001
The New York Times
Page 3, Column 1
c. 2001 New York Times Company

The Enron Corporation said yesterday that its $3.1 billion sale of the
Portland General Electric Company to Sierra Pacific Resources might not be
completed. ''There's probably a 5 percent probability that Sierra Pacific's
purchase of Portland General will be consummated,'' the chief executive,
Jeffrey Skilling, said on a conference call with investors. Enron said in
January that Sierra Pacific might not be able to sell a Nevada power plant
stake as needed to win regulatory approval for the Portland General
transaction. Enron blamed a California law that barred public utilities from
shedding generators until 2005 because of an electricity shortage.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Operators of California Power Grid Testify of System Abuses

03/24/2001
KRTBN Knight-Ridder Tribune Business News: The Orange County Register -
California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

WASHINGTON--The operators of the state's electricity grid said Thursday that
California and its utilities have paid $6.8 billion too much for electricity
since last spring and they want federal regulators to order power suppliers
to give some of that money back.
The state contends that the overcharging was made possible because some power
generators kept prices artificially high through questionable bidding
practices or by limiting the supply of electricity.
But unless the Federal Energy Regulatory Commission changes its philosophy
and methods, the grid's plea for relief could fall on deaf ears.
Federal regulators have so far been willing to review only transactions that
took place during Stage 3 alerts, when the state is on the verge of the kind
of rolling blackouts that swept through California this week.
And FERC's commissioners say they can only consider alleged overcharges since
Oct. 2, which they previously set as a starting point for considering any
refunds. The state's analysis goes back to last May.
"We have no recourse legally to go back retroactively and look at rates that
occurred before we set the refund-effective period," FERC Commissioner Linda
Breathitt said in an interview Thursday.
Breathitt and FERC's chairman, Curt Hebert, defend only reviewing charges
during Stage 3 alerts.
"Those are the hours when we believed that the exercise of market power would
have been most prevalent," she said.
Limiting the review to that time, says dissenting Commissioner William Massy,
virtually guarantees there will be few or no refunds. There were only two
hours of Stage 3 alerts during 2000, he said.
"If you are concerned about a high bid during shortage conditions, you would
be doubly concerned about that same bid under conditions where there was
plenty of supply," Massey said Thursday in an interview.
In fact, the California Independent System Operator, which manages the
state's power grid, found that significant market power is being exercised
during all market conditions, and that $6.2 billion of the allegedly
excessive power costs were billed when no Stage 3 emergency existed.
According to studies by the ISO's economists, suppliers used "well-planned"
strategies, including offering part of their capacity for sale at a much
higher price than other sellers. The ISO studied transactions involving 21
generating companies. It did not release the names of any of them. Leading
suppliers in California include Dynegy Inc., Duke Energy Corp., Reliant
Energy Inc., Williams Cos. and Enron Corp.
"The prices were above a normally competitive market," said Anjali Sherrin,
author of the ISO's analysis.
The $6.8 billion includes $562 million in alleged overcharges during December
and January. Of those, FERC has proposed refunding $69 million for January.
The power generators accused of the overcharges have until the end of today
to give tell FERC why they believe those charges were justified.
The ISO wants federal regulators to step in and stabilize the wholesale
electricity prices that have pushed Southern California Edison and Pacific
Gas & Electric Co. to the brink of insolvency.
Power companies that sell to the ISO and the utilities said they were
confident an independent examination will find that they did nothing wrong.
"We stand by our practices," said Richard Wheatley of Reliant Energy in
Houston, which owns about 8 percent of California's in-state generating
capacity. "We have operated legally and ethically at all times in
California."
FERC has been under fire from state and federal officials and lawmakers for
not being aggressive in dealing with the electricity crisis.
In recent weeks the agency has taken several actions, including proposing
refunds for January and February.
But those who have watched the agency over the years say the actions do not
yet signal a change of course from its posture of preferring to let the
markets work their will. "I think what they are trying to do is the minimal
amount possible, to say they are on top of the situation," said Bill Marcus,
an economist at JBS Energy in Sacramento, an energy and water-resources
consulting firm. "They'll probably figure out a way to back down from the
refunds."
Perhaps the most controversy has come over FERC's opposition to any form of
price caps.
The Bush administration as well as Hebert are dead set against caps. They say
increased supply and conservation are the proper solutions and that price
caps would retard new generation.
Massey supports them, however, and Breathitt says she is becoming
increasingly worried about the short-term problem in California and is open
to some form of caps.
But, she says, unless Hebert's mind can be changed, he can block even a study
of proposed caps.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

NEWS
Santa Clara Plans for More Power / Generators to be built on existing plant
sites
Michael McCabe
Chronicle Staff Writer

03/24/2001
The San Francisco Chronicle
FINAL
A.15
(Copyright 2001)

Anticipating vastly increased demand for power from Silicon Valley's
high-tech companies, the city of Santa Clara is planning to build up to four
small to medium electricity generating plants.
The goal is to increase the city's electrical supply by as much as 50
percent. City officials say the plants, to be built on existing power
generation sites in industrial areas, could be online as early as next year.
Unlike the San Jose City Council, which rejected Calpine's plan to build a
600-megawatt plant in the city's southern end, the Santa Clara council
directed staff to seek proposals for building the small to medium plants.
The plants probably would be owned and operated by the municipal electric
utility, Silicon Valley Power, or possibly by private companies.
"These plants are being built to meet our future load requirements," said
Larry Owens, division manager of customer services for the city's power
company. "Adding new generation to our portfolio of existing in-town
resources will keep us ahead of the curve."
Santa Clara, along with Palo Alto and Alameda, is among the few
municipalities in the Bay Area that own and operate its own utilities. The
city generates 40 percent of its power with plants it owns or in partnership
with other municipal utilities. It also has long-term contracts with other
power companies, including Pacific Gas and Electric Co. and Enron.
Palo Alto officials have recently raised the possibility that they too may
build a small power plant in their city to augment energy supplies.
In Santa Clara, as much as 80 percent of the additional demand is expected to
come from high-tech companies, said John Roukema, the utility's assistant
director.
"A lot of the new demand will come from Internet data centers, where they
take whole buildings and put wall-to-wall computers inside to act as servers
for Web sites," Roukema said. "These are very energy-intensive users."
Plans for buildings stuffed with computers are sprouting up in other cities
as well. San Jose officials gave preliminary approval last week to what would
be the world's largest "server farm." The sprawling facility to handle
Internet traffic would drain about 150 megawatts of power from the state
electricity grid.
Santa Clara, which has two power plants within the city's limits, wants to
build the four plants next to existing power substations at 1205 Space Park
Drive and 2970 Lafayette St., and next to its two power plants at 525 Roberts
St. and 2339 Gianera St.
Their power capabilities would range from 50 to 130 megawatts. A 130-megawatt
plant could provide power to 130,000 homes in the city, but 90 percent of the
city's power goes to commercial and industrial customers.
Santa Clara, a city with a population of just over 100,000 people, has
several prominent Silicon Valley companies within its boundaries, including
Intel Corp., Sun Microsystems, 3Com, and Applied Materials.
Unlike San Jose, Santa Clara officials anticipate little opposition to the
plants, mainly because they would be relatively small and they would be
located in industrial areas.
If all four plants are built, the total cost is estimated at $130 million, to
be paid for with revenue bonds or with the city's existing reserves. City
officials insist customers will not end up with higher bills.
"What this is all about is stable prices and supply for our customers," said
Carol McCarthy, Santa Clara's deputy city manager.

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Calif. Crisis, M&A, Gas To Dominate Talk At Howard Weil
By Christina Cheddar
Of DOW JONES NEWSWIRES

03/23/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- As hundreds of energy company executives and investors
gather in New Orleans beginning Sunday evening for the Howard Weil Energy
Conference, the customary talk about oil prices may get drowned out by the
roar of other industry concerns.
Issues such as the California power crisis, the continuing march of industry
consolidation, and the rise in natural gas prices have been stealing
headlines for months, and are likely to take center stage at the conference,
which tends to be one of the more prominent industry gatherings each year.
In addition, participants will be honing in on the trend toward energy
convergence, where companies market both gas and power, have trading
operations, and, in many cases, have pipeline assets and power-generating
facilities.
Rising energy prices also have led industry observers to ask questions about
alternatives to oil and gas. In response, Howard Weil, which is a unit of
Legg Mason Inc. (LM), has added a fourth day of company presentations
dedicated to power technologies. Presenting on that day will be microturbine
manufacturer Capstone Turbine Corp. (CPST), gas-to-liquids technology
developer Syntroleum Corp. (SYNM), and power-quality product maker Active
Power Inc. (ACPW).
Still, oil prices remain at the heart of the industry, and executives will be
weighing in with their views about where prices are heading.
Kicking off the conference presentations will be Chevron Corp.'s (CHV) Chief
Executive Dave O'Reilly.
Other oil companies presenting at the conference include Conoco Inc. (COCA,
COCB), USX-Marathon Group (MRO), Phillips Petroleum Co. (P) and Anadarko
Petroleum Corp. (APC).
Included among the oilfield services companies are Global Marine Inc. (GLM),
Halliburton Co. (HAL), Transocean Sedco Forex Inc. (RIG) and Schlumberger
Ltd. (SLB).
El Paso Corp. (EPG), Dynegy Corp. (DYN), Enron Corp. (ENE), and Reliant
Energy Inc. (REI) are among the convergence and power companies making
presentations.
Barrett Resources Corp. (BRR), which is fending off a hostile bid from Shell
Oil Co., was slated to appear Monday, but has pulled out of the conference.
Speculation continues over whether Shell's bid will be challenged by a rival
for the Denver oil and gas exploration and production company.
Last year, Anadarko, of Houston, created a stir by announcing its plan to
acquire Union Pacific Resources Corp. on the morning of its presentation.
Participants may be looking forward to other comparable industry developments
to occur at this year's conference.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166;
christina.cheddar@dowjones.com

Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.


Mary,

Per my voice mail to you, I am updating you on the status of the ISDA's we
have sent to Engage:

1) Engage Energy US, LP:
I spoke to Luke Mickum, the legal person at Engage US (713-877-7446), this
morning.  He is looking into what issues need to be reviewed/discussed.
According to Carol there are no open issues.  If that is the case can we send
executed copy's of the ISDA to him for signature.  Before it is sent off, we
need to make sure the correct changes have been made to the Credit Annex, as
the credit support provider has changed from my original credit worksheet.  I
am not sure if Carol had made those changes in her drafts.

2) Engage Energy Canada, LP
According to the Lotus Notes Database, the draft amendment of this contract
was also sent to Luke, although he is the US lawyer.  A draft needs to be
sent to the Canadian Lawyer, Suzzi Sethi 403-297-0348.  She sent us a draft
guaranty for review with the guarantor West Coast Gas Inc.  This counterparty
is the new guarantor for Engage Canada and the ISDA Credt Annex needs to be
updated accordingly.  Once again, we need to make sure the Credit information
is still correct in the original draft.  I have given a copy of the guaranty
to Tana, can you please review this and provide your comments to Suzzi.

Please let me know if you require any additional information.

Thank you,

Russell

   Carol St Clair                08/04/2000 11:58 AM

To: Russell Diamond/HOU/ECT@ECT
cc: Tana Jones/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT
Subject: Re: Engage

Russell:
I am working with Tana on the Engage US amendment.  There should be no open
issues, but before I left I sent some e-mails to Luke Mickum, their attorney
which he never responded to.

Tana,
Please ask Mary Cook to review the Engage Canada Guaranty from West Coast.
The comments that I made to the other Engage Guaranty which I have forwarded
to you should apply here.  Has their attorney in Canada responded to  the
Engage Canada amendment?  The latest draft of the Engage US amendment and the
latest draft of the Engage Canada amendment I believe is still on your system
and should be in the file, but you and Mary should both follow up with their
attorney based on the e-mails that I sent to him which I have forwarded to
you.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com

	Russell Diamond
	08/03/00 02:34 PM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc:
		 Subject: Engage

Hi Carol,

Hope you and you newborn are doing well?  I am not sure what work issues you
are handling, if any, but I would like to ask you if you have any further
information on Engage.  I think Tana Jones may have been speaking to you on
this issue.  I have received a guaranty format from Westcoast Gas Inc. to
cover Engage Energy Canada LP.  They are waiting on our review before they
issue the executed document.  Tana has a copy of this.  Also, I would like to
know what outstanding issues we have with the Engage US and Canada ISDA
amendments so I can go ahead and work to finish them up.

Hope all is well,

Russell


That was amazing.


Please let me know if you have any questions.

Thanks,

Fran Chang
503.464.7973


Hi gang.  Please read the following and let me know what you think.  Also,
what would be the best way to handle this.


EFFECTIVE IMMEDIATELY!

Due to compressor problems, the nominations for the HPL deal have changed:

July 25

10,000 Inlet HPL @ Eastrans

  7,800 FCV / HPL
15,000 Tenn / HPL
  2,500 Mobile Beaumont / HPL  (please note 2500 is physical flow for first 5
hours of original 12,200 nom)
     0      HPL Cartwheel
<15,300> OVER Redelivery Requirements

July 26 (This is the plan until 5:00 pm today)

20,000 Inlet HPL @ Eastrans

   7,800    FCV / HPL
      0        Tenn / HPL
  12,200  Mobile Beaumont / HPL  (please note 2500 is physical flow for first
5
hours of original 12,200 nom)
     0          HPL Cartwheel
    <0>

Please note, the excess volumes for July 25 will be considered
over-redeliveries, NOT incremental sales.
If you have any questions, please call Bruce McMills at (713) 627-6467 or Chad
Cass at (713) 627-6202.

Thanks,
Chad Cass


Please bookout the following deals that I entered for 3/31/2001.

Match purchase deal 718081 with sales deal 718078.

I think this is my last New Power deal forever.


Can I come at 10 a.m. please?

Thanks,
Kate

GRACE RODRIGUEZ
02/23/2001 03:16 PM
To: Portland West Desk
cc:

Subject: ClickAtHome Portland Road Show

Please note the following changes:
We would like to know the approximate number of attendees for the morning
sessions, so please be sure to let me know which of the two sessions you are
interested in attending.
The afternoon session will begin at 1:00pm, rather than 12:00pm
In order to keep the "flow" of traffic moving through Mt. Hood, please plan
on stopping by at the top of the hour (1pm, 2pm, 3pm, 4pm, 5pm).

If you have any questions, please let me know.

Regards,
Grace
x8321


For your information, please see the attached list of the visiting attorneys who are attending the legal conference.

Martha Keesler
Senior Administrative Assistant
Enron North America Corp.
1400 Smith, EB 3829
Houston, Texas 77002
(713) 345-2423
(713) 646-3491 (Fax)


How about meeting in advance of tomorrow's 130 phone call to discuss the
approach we want to take with GE?

I'm suggesting 400 this afternoon.  Please let me know how this works for you.

Thanks,

Kay


Did this lady contact you? Rick

 -----Original Message-----
From: 	Derecskey, Cindy
Sent:	Thursday, July 12, 2001 10:03 AM
To:	Buy, Rick
Cc:	Davis, Jeff D.; Patrick, Christie; Walt, John
Subject:	ICE Program - UVa - DASH

Good morning Rick,

Christie Patrick suggested that I contact you for assistance in pulling together a 'dummy' DASH and past deal capital budgeting information.  Enron University Affairs, the Xcelerator and the Recruiting department are collaborating with the McIntire School of Commerce (University of Virginia) on a year long project where 80 Commerce students will research a topic assigned to them by Enron.  At this point, the Xcelerator has suggested research on the 'Decentralization of Energy Distribution/Distributive Generation', and to this end, we are responding to faculty requests for broad-based industry and Enron-specific information.  Bob Kemp, Associate Dean for the Graduate Programs has requested any type of capital budgeting information that we could provide to help the students 'get a better feel for' how Enron structures its deals.

I am by no means a financial guru or whiz, so I'm not sure any of this will make sense to you but here are the buzz words he mentioned during a conference call:

cash flows
$ required needed
cost of capital
time adjustments (for capital)

Is there anything else we can give them (outside of a dummy DASH)?  We will be entering in a CA with the school/students.

Please let me know at your earliest convenience.

Regards,

Cindy
Enron University Affairs

x 5-7591


Many of you have friends who are no longer with the company, so we wanted to provide you an overview of continuing efforts to assist Enron's former employees.

CAREER SERVICES
Last December Enron established a website to assist former employees identify jobs in Houston and throughout the United States.  Only former Enron employees and potential employers can access the site, http://careerservices.enron.com/

On this site, former employees can:
	? Post their resumes for approved employers to view
	? View job postings
	? Receive updates and information on career and community services available to them
As of January 25, 2002:
	? More than 1,300 companies had been approved to view resumes
	? Company recruiters had logged on more than 3,500 times to search for candidates
	? More than 600 jobs had been posted on the site

FINANCIAL ASSISTANCE
The Greater Houston Community Foundation
The Greater Houston Community Foundation (GHCF), in collaboration with the United Way of the Texas Gulf Coast, the Houston Area Urban League, Crisis Intervention of Houston, and Career and Recovery Resources, have established a fund to provide dedicated support for former Enron employees.  GHCF offers former employees counseling services and helps them work with mortgage companies, landlords and utilities to defer monthly bills while they are out of work.   If you are interested in making a tax-deductible donation to the GHCF, please call 713-268-6458 or mail donations to GHCF at 4550 Post Oak Place, Suite 317, Houston, TX  77027.  Checks should be made payable to Greater Houston Community Foundation and designated for the Enron Employee Transition Fund.  To receive assistance, former employees can call 713-533-4598, or outside Houston, 1-800-493-4598.  Lines are open 24 hours a day, seven days a week.

Enron Ex-Employee Relief Fund Account
A former employee has established the Enron Ex-Employee Relief Fund Account at the Humble Community Bank.  Visit the website at <http://www.eerfa.com> for more information or to make a donation.  Former employees can submit grant requests to eerfarequest@surfmk.com.

MDPC Transitional Assistance Program
Memorial Drive Presbyterian Church has created a Transitional Assistance Program open to both members and non-members who need assistance re-entering the workforce.  Right Management Consultants offers a series of two-day workshops for former employees on topics such as Career Assessment and Evaluation, Job Search Communication and Managing in a Time of Change.  Requests for limited and discretionary short-term financial assistance will be accepted from those who have participated in this program.  MDPC will offer a holistic approach to re-entering the workforce including family counseling and stress management. For more information, contact Memorial Drive Presbyterian Church at 713-953-2550, ext 180.


Hello Richard,

I have been trying to come up with the 312,658 number and am
having difficulty.  Please e-mail me the missing numbers.  It
would be a big help.  I would send you my spreadsheet, but it can
get pretty confusing.  There are so many combinations.  Most of
your numbers agree with the auditor's numbers.  However, there are
a few that do not but are listed on the proof of purchase from
EPMI.  Then some of those purchases don't seem to be reported on
the MPR.  Another scenario is where I found numbers on the MPR
that agree with the auditor but not you....then again, those could
be the missing numbers.  Anyway, sorry this is taking so long.
Once I get all the numbers from you, hopefully I can wrap this up.

I received the e-mail from Heather Raitt.  I briefly looked over
it but haven't spent much time on it yet.

Thanks Richard.  And again, sorry for the delay.

Mary

p.s.  Please respond to this e-mail address.  I will be working
from home the rest of the week.  Thanks.

________________________________________________________________
Sent via the EV1 webmail system at mail.ev1.net


thank you, julie.

Scott


OUR VERY OWN RICHARD SANDERS WILL REPRESENT ENA AT THE GAME SHOW KICK-OFF AT
THE HYATT REGENCY TODAY.  RICHARD ANSWERED ALL OF THE QUESTIONS CORRECTLY
THIS MORNING OUT OF OUR EIGHT FINALIST.  PLEASE GO CHEER HIM ON TO WINNING
MILLIONS FOR UNITED WAY.

SEE YA AT 11:00 AM.
THE HYATT REGENCY IMPERIAL BALLROOM

LOOK FOR THE ENA SIGNS & T-SHIRTS!!!!!!!!!!!!!!!!!!!!!

FREE LUNCH IN ANTIOCH PARK
11:45 - 1:30PM

Joya' F. Davis
Sr. Admin. Assistant
ENA Legal Department
EB3855A
joya.davis@enron.com
(713) 853-9559 DID
(713) 646-4842 FAX


Ignore Shankman - I think that was a bit of joke.


We've changed the weekly scheduled meeting to accommodate more people's calendars:

When: every Tuesday
When: 3pm
Where: 15c1


A position has recently become available in the Real Time Trading group
reporting to Bill Williams.  Bill will be holding an information session on
Thursday, April 19, 2001 at 11:00 am in Mt Hood for anyone who would like to
learn more about this opportunity.  Interested candidates should let Amy
FitzPatrick know by close of business on Monday, April 23, 2001.

Real Time Trading
Real Time Trading is responsible for the physical and financial integrity of
prescheduled energy transactions.  This includes managing curtailed schedules
and preserving Enron,s financial rights with non-performing trading
counterparties.  The group is required to maintain records and update
databases that explain supply or market interruptions in order to minimize
customer billing dispute issues.

In addition, Real Time Trading is responsible for the hourly trading of
energy in the California ISO and bilateral markets.  Traders are expected to
initiate profitable trades while maintaining an acceptable amount of risk
exposure to the company.  The group is expected to know all settlements
requirements and charges related to each type of trade.  Each trader is
capable of interfacing with customers and responding to internal and external
billing inquiries.

Real Time is required to administer terms of Service Desk contracts, which
may include the selling of excess generation and purchasing energy for
customer,s load requirement.  Also, each trader is responsible for gathering
and reporting information on unit outages, transmission line derations and
other information that is useful for all West Desk Trading activity.

Job Duties
? Confirm purchases and sale of power for Enron Power Marketing
? Work closely with volume, risk management, and dispute settlement groups
? Aid in preparation of price and deal reports and assist in the resolution
of volume/price discrepancies
? Interface with service and middle marketing customers to resolve real-time
questions and concerns
? Assist in testing and implementation of FSP and OATI real-time tagging
? Work closely with information technology and fundamentals group to maintain
and develop Real-Time tools and systems

Qualifications
? Bachelors in Finance, Business, Accounting or related field
? 1 to 2 years of previous power industry experience in WSCC is preferred.
? Excellent problem solving and communication skills
? Working knowledge of Excel, Access, Visual Basic and SQL
? Self motivated
? Detail oriented


REMINDER -----TODAY 3:00 PM

Dave would like to have a strategy meeting next Tuesday  October 17, 2000,
from 3:00-5:00 pm in room 30C1. No preparation is necessary and it's
important that each of you plan to attend.

If you cannot attend, please contact Dave directly.

Laura - Video Conf.

Frank Vickers - - Video Conf.
Barry Tycholiz--  Video Conf.


Thank you for the feedback.  We're "sanitizing" the document a wee bit
(taking out the "opposing view--response" part).  When that's done, I assume
it will OK to distribute.  Karen?

Best,
Jeff

	Susan M Landwehr
	05/15/2001 11:12 PM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc: Paul Kaufman/PDX/ECT@ECT
		 Subject: Re: Backgrounder for McNealy

Jeff--I just today had a chance to review this document.  If you're still
looking for comments I have one suggestion.

Under section 1 you list the problem and then the solution and then use the
heading "Don't make matters worse".  If you could somehow highlight that
section--make it stand out more.  The folks that you are trying to
reach--business leaders---understand capital markets and how all of the
rhetoric and investigations and allegations can discourage investment.

I would like to be able to send this document when you get it finished to
some of our contacts in the gov's offices--ok with you?

Lastly, I love the chart on growth.

	Jeff Dasovich
	Sent by: Jeff Dasovich
	05/14/2001 12:08 PM

		 To: skean@enron.com, Richard Shapiro/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron, Alan Comnes/Enron@EnronXGate, Karen
Denne/Corp/Enron@ENRON, Janel Guerrero/Corp/Enron@Enron, Susan J
Mara/NA/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, Paul
Kaufman/Enron@EnronXGate, Susan M Landwehr/NA/Enron@Enron, Linda
Robertson/NA/Enron@ENRON, Tom Briggs/NA/Enron@Enron, Joe
Hartsoe/Corp/Enron@ENRON, Leslie Lawner/NA/Enron@Enron, Harry
Kingerski/NA/Enron@Enron, Jennifer Thome/NA/Enron@Enron, Robert
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: Backgrounder for McNealy

Greetings:
As folks heard, Ken Lay met with some California CEOs last Friday back East.
As a result of that meeting, McNealy, CEO for Sun, asked for some background
and more detail on what Ken Lay proposed as a solution for California during
his meetings in California over the past couple of weeks.  McNealy and others
have expressed a willingness to make phone calls to policymakers, etc. to try
to advance the ball.

I pulled this together very hastily on Friday and take responsibility for all
errors, omissions, ramblings, etc.  Wanted to distribute, however, to make
sure that all had the info that is getting distributed.  Know folks are busy,
but this will likely get distributed to other CEOs this week, so any
comments, suggestions, etc. about how to improve are welcome and appreciated.

Best,
Jeff


Thanks,  I just ordered it.

DG

randy.g.kruger.jr@us.arthurandersen.com on 03/28/2001 02:50:26 PM
To: Darron.C.Giron@enron.com
cc:
Subject: Re: Ethics

The internet address is as follows:

http://www.psiware.com/ethics.asp

To:   Randy G. Kruger Jr.
cc:
Date: 03/28/2001 02:21 PM
From: Darron.C.Giron@enron.com
Subject:  Ethics

Randy,

Could you please send me the info on the ethics course?  Thanks.

DG

*******************Internet Email Confidentiality Footer*******************

Privileged/Confidential Information may be contained in this message.  If you
are not the addressee indicated in this message (or responsible for delivery
of
the message to such person), you may not copy or deliver this message to
anyone.
In such case, you should destroy this message and kindly notify the sender by
reply email. Please advise immediately if you or your employer does not
consent
to Internet email for messages of this kind.  Opinions, conclusions and other
information in this message that do not relate to the official business of my
firm shall be understood as neither given nor endorsed by it.


Evelyn,
This should have been sent to you.  I'm sure that you will be copied in the future.
Doug
 -----Original Message-----
From: 	Carson, Mike
Sent:	Friday, January 04, 2002 7:50 AM
To:	Sewell, Doug
Subject:	FW: WIRE Transfer to KOCH

 -----Original Message-----
From: 	Carson, Mike
Sent:	Friday, January 04, 2002 7:50 AM
To:	Bentley, Corry
Subject:	WIRE Transfer to KOCH


A procedural order issued late last night on the Staff Investigation in the
California market.  A special FERC Commission meeting will be held November 1
to consider a draft order on remedies.  The Commission will also issue the
staff investigation report.  Thereafter, comments are due within three weeks
to supplement the record or comment on the Commission's proposed remedies.
On November 9, the Commission will hold a public conference to discuss
proposed remedies.  Based on the full record then, the FERC expects to issue
an order directing remedies by the end of the year.


David

I agree with your proposal but would like to add that in order to determine
the MAC for Vitol Holding BV, in the absence of a Rating from S& P etc, we
need to receive details of existing bank covenants which I believe you were
going to forward to us.

We also need to consider the netting issue between the various entities
involved in UK Power / Gas / Oil

Please give me a call if you have any questions

Best regards

Lee

	Enron Capital & Trade Resources Corp.

	From:  David Fransen <DBF@Vitol.com>                           31/05/2000
15:57

To: "'Sara Shackleton'" <Sara.Shackleton@enron.com>
cc: "Lee Munden (E-mail)" <lmunden@enron.com>, "David Hardy (E-mail)"
<dhardy@enron.com>, Gilbert Widmer <GIW@Vitol.com>

Subject: Master Agreement (financial) between Enron North A merica Corp. (
"ENA") and Vitol S.A. ("Vitol")

Sara

Firstly, thanks for the message. I am indeed the right person for ISDA's in
Vitol. I did meet with your credit people in London ( David Hardy and Lee
Munden) and we did discuss the idea of replacing the existing agreement. I
am at present in our office in Rotterdam, but will be back in Geneva
tomorrow. I therefore do not have the existing agreement with me, but I seem
to remember that it is just signed with Vitol SA Inc, which is the US branch
office of the main trading company in the Vitol Group, Vitol SA, which is a
Swiss company registered in Geneva. I would suggest that you send us a
proposal for an ISDA agreement with Vitol SA, set up as a multibranch
company about to trade out of its Geneva and Houston office, and with Vitol
Holding BV (the ultimate parent company of the group) as the credit support
provider. I would hope that once we have agreed terms for the basic schedule
and credit support annex, we can then easily add other Vitol or Enron
companies as appropriate.

Regards, David

David Fransen
Vitol SA Geneva
Tel : 00-41-22-322-1111

**********************************************************************
This email and any files transmitted with it are confidential and
intended solely for the use of the individual or entity to whom they
are addressed. If you have received this email in error please notify
the sender.
**********************************************************************

-----Original Message-----
From: Sara Shackleton [mailto:Sara.Shackleton@enron.com]
Sent: 31 May 2000 15:20
To: dbf@vitol.com
Subject: Undeliverable: Master Agreement (financial) between Enron North
A merica Corp. ( "ENA") and Vitol S.A. ("Vitol")

----- Forwarded by Sara Shackleton/HOU/ECT on 05/31/2000 08:19 AM -----
|--------+----------------------->
|        |          System       |
|        |          Administrator|
|        |          <postmaster@V|
|        |          itol.com>    |
|        |                       |
|        |          05/30/2000   |
|        |          11:31 AM     |
|        |                       |
|--------+----------------------->

>---------------------------------------------------------------------------
-|
  |
|
  |       To:     Sara.Shackleton@enron.com
|
  |       cc:
|
  |       Subject:     Undeliverable: Master Agreement (financial) between
|
  |       Enron North A merica Corp. ( "ENA") and Vitol S.A. ("Vitol")
|

>---------------------------------------------------------------------------
-|

Your message

  To:      ddf@vitol.com
  Cc:      Tanya Rohauer
  Subject: Master Agreement (financial) between Enron North America Corp. (
"ENA") and Vitol S.A. ("Vitol")
  Sent:    Tue, 30 May 2000 17:27:07 +0100

did not reach the following recipient(s):

ddf@vitol.com on Tue, 30 May 2000 17:31:42 +0100
    The recipient name is not recognized
     The MTS-ID of the original message is: c=US;a=
;p=Vitol;l=LDN0040005301631L7L87HSX
    MSEXCH:IMS:Vitol:LONDON:LDN004 0 (000C05A6) Unknown Recipient

Message-ID: <862568EF.005A5FCD.00@notes.ect.enron.com>
From: Sara Shackleton <Sara.Shackleton@enron.com>
To: ddf@vitol.com
Cc: Tanya Rohauer <Tanya.Rohauer@enron.com>
Subject: Master Agreement (financial) between Enron North America Corp. (
"ENA") and Vitol S.A. ("Vitol")
Date: Tue, 30 May 2000 17:27:07 +0100
Return-Receipt-To: Sara Shackleton <Sara.Shackleton@enron.com>
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2650.21)
X-MS-Embedded-Report:
Content-Type: text/plain;     charset="iso-8859-1"

I am a derivatives lawyer with ENA in Houston and obtained your name through
one
of my traders who is transacting with Jay Carr in Houston (please see
attached
message below).  When I spoke with Jay earlier this month, I asked him for
the
name of a lawyer but was advised that all Vitol lawyers were in New York and
that he would pass my message along to a lawyer.  I am assuming that you are
the
trading lawyer who can assist me with negotiating an ISDA Master Agreement
between our respective companies.  If not, please let me know and feel free
to
pass this message on to the appropriate attorney.  On April 12, 1995, Enron
Capital & Trade Resources Corp., predecessor in title to ENA, and Vitol
S.A.,
Inc. entered into a Master Agreement which is one of ENA's early energy
price
swap agreements.  Since our companies are currently trading weather
derivatives,
I think you would agree that it would be prudent to supersede the existing
agreement with an ISDA Master Agreement.  This relates to my conversation
with
Jay in that we confirmed our weather deals under the existing master but
incorporated the 1991 and 1993 ISDA definitions into the confirms of our
weather
trades.  Please let me hear from you.  You can reach me via email, phone
(713/853-5620) or fax (713/646-3490).
----- Forwarded by Sara Shackleton/HOU/ECT on 05/30/2000 11:14 AM -----
|--------+----------------------->
|        |          Sara         |
|        |          Shackleton   |
|        |                       |
|        |          05/05/2000   |
|        |          11:47 AM     |
|        |                       |
|--------+----------------------->

>---------------------------------------------------------------------------
-|
  |
|
  |       To:     jfc@vitol.com
|
  |       cc:
|
  |       Subject:     Master Agreement (financial) between Enron North
America|
  |       Corp. ("Enron") and Vitol S.A.
|

>---------------------------------------------------------------------------
-|

Jay:  I am a lawyer with Enron.  I called for you on Friday, you're out, and
no
one else could help.  I would like to speak with a Vitol lawyer about (1)
replacing our existing financial master with an ISDA (to accommodate a
broader
range of products) and (2) specifically incorporating the relevant ISDA
definitions into the recent weather transaction confirmations even though
the
master is an early master energy price swap agreement.  Please call me at
713
853-5620 with the information so that we can move quickly.  Thank you for
your
help.  Sara


OUTLOOK EMAIL NOTIFICATION

Your Date of Migration is: Monday, June 11th

YOU WILL BE UNABLE TO SEND E-MAIL unless you take the following action:
Please go through your Notes email and clean out as many old/un-needed email
items as possible BEFORE your date of migration.? After you are migrated to
Outlook you will only be allocated 100MB of total Mailbox space.?? If more
than this amount of data is migrated to Outlook YOU WILL NOT BE ABLE TO SEND
E-MAIL until it is below the 100MB limit.? Cleaning up your Notes email now
will prevent this from happening to YOU.

Enron,s messaging platform is migrating from Lotus Notes to Microsoft Outlook
2000 worldwide.  You will be accessing Outlook for all of your email
functions.

WHY IS ENRON MIGRATING TO OUTLOOK 2000?

Many factors contributed to the decision to migrate from Lotus Notes to
Microsoft Exchange/Outlook.  The most prominent factors were:

? Significant advantages to moving to a product that is more integrated with
current Enron apps (Windows 2000, Office and Internet Explorer)
? More efficient Shared PC and Roaming User features
? Improved support and integration for Palm/CE devices
? Instant Messaging capabilities

WHAT IS BEING MIGRATED TO OUTLOOK 2000?

? Email Messages.  From the date of your scheduled migration, the last (30)
thirty days of your Email will be converted for use in Outlook.
? All your folders in Notes you use to store email messages in.
? To Do Items
? Journal Items
? Calendar Entries dating from (1) one year in the past to (10) ten years in
the future will be converted.
? Address Books, but NOT your Distribution Lists that you created.  You will
need to re-create these in Outlook.

Thank you,

Outlook 2000 Migration Team


Did you ever call him?
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 01/07/2001
11:54 AM ---------------------------

GWDORSEY@aol.com on 01/05/2001 03:38:50 PM
To: jeff.shankman@enron.com
cc: whalley@enron.com
Subject: fert

I reached Greg today and had a nice conversation. He encouraged me to call
you.

Having missed you today I wanted to make a few suggestions.
With regard to your reservations about an investment in plant and equipment-
I understand that any such investment would be: limited and subject to your
being very attracted to the deal. I am confident that I can bring you deals
that will sell themselves.
-need to have an exit strategy that would allow an exit within 2-4years

A trading strategy without investment in plant and equipment will yield
attractive results.

With regard to how that would look - I will draft a short business plan and
send it to you next week basing it on a pure trading basis.

Let me invite you and Greg to a breakfast (or any other meal) during the week
of 16 Jan. That will give me a chance to get a few numbers in your hand
prior.

Regards for the New Year
George Dorsey
713 302 2047
406 582 0974


Attached is a black-lined copy of the Assignment and Assumption Agreement.

Angela D. Davis
Enron North America Corp.
1400 Smith, Suite 3842
Houston, Texas 77002
Tele. (713) 345-8347
Fax:  (713) 646-3393
e-mail:  angela.davis@enron.com


Jeff/Leslie/Barry---attached is a quideline that we developed on what our
"global" message on price risk management would be as we talk to PUCs across
the country and was intended to address the issue in both power and gas
markets.  It's a good starting point and should obviously then be tailored to
each state's situation.

I am happy to jump on a call to discuss.  I will be in Michigan on Monday,
but could be available between 9:30 and 12:00 eastern.  (6:30-9:00
pacific--sorry Jeff!!).  If you could leave me a voice mail about what time
to talk and whose number to call that would be great.  #612-339-4599

If we decide to talk later in the week, I am not open on Tuesday until about
3:30pm central but Wednesday I'm pretty much available all day.

	Jeff Dasovich
	Sent by: Jeff Dasovich
	07/13/2001 05:21 PM

		 To: Leslie Lawner/ENRON@enronXgate
		 cc: Barry Tycholiz/ENRON@enronXgate, Susan M Landwehr/NA/Enron@ENRON
		 Subject: RE: CA Instrate Gas matters

I can make time.  Let's try to let Leslie vacation.  Also, I'm having a memo
prepared that should be ready first thing Monday AM on the CA Commission's
policies regarding utility use of hedging instruments.  Just let me know when
you'd like to talk.

Best,
Jeff


Attached is an updated spreadsheet with the latest calculations of methanol plant allowances, DERCs and ERCs.

Marc N. Phillips
Director, Regulatory Technical Analysis
713-646-7646 (cell 713-594-6919)
marc.phillips@enron.com