Fortune Global 500 List: Enron No. 16
Fortune, July 23, 2001
THE CARNAGE GETS WORSE Profits at bellwether companies slid in the second
quarter
BusinessWeek, 07/30/01

Power-Market Bear Mauls Plans For New Generators In West
Dow Jones Energy Service, 07/26/01
UK: Carrots and sticks to turn big business greener.
Reuters English News Service, 07/26/01

JAPAN: UPDATE 1-Kobe Steel to raise 165 bln yen for power business.
Reuters English News Service, 07/26/01

ENRON CANCELS MIAMI-DADE PLAN POWER PLANT BUILDER FAVORS DEERFIELD SITE
South Florida Sun-Sentinel, 07/26/01

Rove's First Step Toward Shedding Stock Took 5 Months
The Washington Post, 07/26/01

Insider Selling by Enron Execs Speaks Louder Than Their Words
TheStreet.com, 07/20/01

Enron's Own Dot-Com Bubble Finally Popped
TheStreet.com, 07/13/01

Fortune Global 500 List: Enron No. 16
Fortune, July 23, 2001
http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=203281

News: Analysis & Commentary: FLASH PROFITS
THE CARNAGE GETS WORSE Profits at bellwether companies slid in the second
quarter
By Pallavi Gogoi in Chicago, with bureau reports

07/30/2001
BusinessWeek
34
(Copyright 2001 McGraw-Hill, Inc.)

Welcome to the earnings recession. Economists may debate the health of the
economy, but there's little doubt where Corporate America stands: Profits
have shrunk for three consecutive quarters now. Higher energy costs, the
gut-wrenching hangover from tech-spending excesses, and the strong dollar
have all contributed to a slowing economy--and continue to take a heavy toll
on earnings.
That's despite seemingly strong revenue gains. Although overall sales rose 8%
in the second quarter from the year before, BusinessWeek's flash profit
survey of 90 bellwether companies shows that net income shriveled 34%. But on
a closer look, sales weren't so hot either. Much of the jump stems from Enron
Corp.'s 196% revenue gain. Barring that, overall sales were flat. DEPRESSED.
Nor is the carnage over yet. First Call/Thomson Financial says earnings will
drop 8% in the third quarter. Worse, recent earnings surprises have the
Boston firm backing away from a projected 3.3% profit recovery in the fourth
quarter. So far, 811 companies have warned of lower second-quarter earnings,
up from 263 a year ago. ``You don't switch from record earnings warnings to
normal overnight,'' says Charles L. Hill, First Call's director of research.
Few sectors escaped the bloodbath. Tech companies continued to lead the
downturn: Intel Corp.'s net dropped 94% on depressed demand for chips, while
Motorola Inc.'s $759 million quarterly loss was one of the worst among the 90
companies. Carmakers and airlines didn't fare much better. General Motors
Corp.'s profits plunged 73% on weaker sales and losses from overseas units.
``The strong dollar is becoming an increased problem in the marketplace,''
says GM CFO John Devine. Among carriers, UAL Corp. was one of the worst
performers, posting a $292 million loss. Corporate travel cuts will force
losses at most major carriers.
The financial services sector was a mixed bag. Citigroup's net rose 9%, to
$3.7 billion, on higher global business growth. But venture capital
investments in technology dealt Wells Fargo & Co. an $87 million loss.
There were few surprises among the quarter's star performers. Jack Welch will
retire with his legacy as a master of strong and consistent earnings intact:
General Electric Co. earnings rose 15%, to $3.9 billion. Pharmaceuticals were
also healthy. Pfizer Inc.'s net surged 56% to $1.8 billion, and Johnson &
Johnson's climbed 9%, to $1.5 billion, on increased drug sales. Good thing.
If the economy stays sick, we're all going to need plenty of painkillers.

Table: BusinessWeek's Flash Profits Survey (This table is not available
electronically. Please see the July 30, 2001 issue.)
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Power-Market Bear Mauls Plans For New Generators In West
By Mark Golden
Of DOW JONES NEWSWIRES

07/26/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- The crumbling price of electricity in the western
U.S., attributed by many to federal price controls, has forced power plant
developers to cancel projects, calling into question whether there will be
enough electricity to meet demand in the Northwest this winter.
The cancellations of peaking plants and temporary, oil-fired generators -
high-cost units that provide power needed only when demand is highest - have
cut projected generating capacity in the Northwest by up to 1,000 megawatts,
about 3% of the combined peak demand of Washington, Oregon, Idaho and western
Montana.
"The price caps have added uncertainty," said Scott Simms, spokesman for
Enron Corp. (ENE) unit Portland General Electric Co. "If we look forward to
this winter and you see a diminished supply scenario, you can see why we have
concerns about regional reliability. That could put us in a position of
having rotating outages in the region."
About two weeks after the Federal Energy Regulatory Commission imposed limits
on western power prices on June 19, Portland General halted installation of a
new 45-megawatt gas-fired peaking turbine at its existing Boardman power
plant.
The utility was developing the extra generation both to meet its customers'
needs and to sell some output to other Northwest utilities left short of
hydroelectric supplies due to this year's drought. A turbine that size could
power about 45,000 homes.
"You can directly attribute that to FERC price controls," Simms said.
After the FERC order, at least two utilities in Washington State ended
negotiations with NRG Energy (NRG) for supplies from new plants that NRG was
ready to build in time for winter. Both utilities - Tacoma Power and
Snohomish County Public Utility District - experienced significant supply
shortages in the past 12 months, paid very high prices in the spot market and
had to raise customer electric rates by as much as 50%.
But both utilities told NRG, and later Dow Jones Newswires, that they had no
reason to sign long-term contracts to guarantee new supplies, because the
FERC had practically eliminated the financial risk of relying on the spot
market. NRG, as a result, scuttled plans to build peaking plants in
Washington that could have added 300 megawatts.
FERC's price controls, as well as supply-demand fundamentals, have
dramatically changed the economics of selling power into the West's open
market in the past few months.
The current western U.S. electricity price cap of $98 a megawatt-hour covers
the costs of generating power from easy-to-install but inefficient peaking
turbines, but not the capital costs of buying and installing new peakers. In
addition, the current price cap may soon be recalculated to a much lower
level. The cap is based largely on natural gas prices, which have been cut in
half since the cap was first formulated in June.

Not Everyone Blames FERC

The average monthly price for on-peak hours in the Northwest from August
through March is $60 a megawatt-hour - a fraction of what it was three months
ago. Many in the western electricity industry think that's because FERC's
price controls have kept prices artificially low. A smaller group thinks the
market is appropriately signaling that not all the planned gas-fired plants
are needed, because some power plants are already under construction and
consumers are conserving electricity.
Jim Kemp, a senior executive for the Canadian utility TransAlta's (TA.TO)
merchant power group, TransAlta (TA.TO), for example, doesn't attribute the
cancellation of projects to price controls.
"I see it as due to demand-side control and new units," Kemp said. "The
market is sending out a signal that we have enough. Maybe this winter we will
find that we don't have enough, but that's not the signal the market is
sending now."
The spot market for power has been far below the federal price cap for two
months. Mild weather, a slowing economy and conservation efforts throughout
the West have made power from expensive peaking plants unnecessary except for
a few hours so far this summer.
"Prices started to come down before the FERC mitigation plan started," said
Tacoma Power supply analyst David Lucio, who was negotiating with NRG. "The
need to try to execute a contract wasn't as great with the prices falling."
Lucio said there should be enough capacity to get the Northwest through the
winter, barring abnormalities like a long, extended freeze.
Construction of dozens of peaking plants in the West is going forward in
cases where developers sold supply contracts in advance. TransAlta is
continuing construction of a 154-megawatt peaking plant in Washington,
because much of the plant's capacity was sold months ago.
"The number of announced projects is far and away more than what is needed
within the time frame we're talking about," said Dick Watson, a director with
the Northwest Power Planning Council.
Still, several western utilities have asked the FERC to raise the price cap.
Puget Sound Energy (PSD) told the FERC the cap "undercuts the Commission's
efforts to ensure adequate supplies of electricity."
As previously reported, some small oil-fired generators, which are even more
expensive to operate than the permanent, gas-fired peaking plants, have even
been taken off line permanently after being installed over the past six
months. And orders for new generators have been canceled.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com

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

UK: Carrots and sticks to turn big business greener.
By Andrew Callus

07/26/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 26 (Reuters) - Stricter environmental laws, flagged by last
week's climate change conference, have companies scrambling to link
investment strategies to making money from helping save the planet.
Governments from 186 countries returned home from a climate change meeting in
Bonn with the task of making the 1997 Kyoto protocol on combatting global
warming into law.
After that, they must find ways to meet their respective carbon emissions
limits by 2012, or face penalties.
The deal reached in Bonn will allow the trading of greenhouse gas emissions
whereby a company polluting below its limit can sell credits to a company
polluting more than is allowed. Advocates of the system believe this will
create incentives to cut emissions and will help reduce costs of lowering
emissions.
The allowances of greenhouses gases a company can emit will be denominated in
metric tonnes of carbon dioxide equivalent.
Energy giant Royal Dutch/Shell predicts a traded price of $5 a tonne of
carbon in 2005, rising to $20 a tonne (equivalent to $6 a tonne of CO2) by
2012.
"Our investment criteria today incorporate that cost of carbon," said David
Hone, Climate Change Adviser to the Anglo-Dutch group.
"What that's doing is starting to steer our investment portfolio and our
project portfolio to lower emission projects, or forcing higher emission
projects to go down the route of more investment to mitigate that carbon in
the first place."
"This is a big agenda now. It's serious stuff," said Mark Lilley, a partner
in risk management at the consultancy Accenture. "Business, and not just the
energy business, just has to be part of it on every level, or it risks
getting burned."
NEW TOOLS
Besides the internationally tradeable carbon pollution credits, the
governments agreed initiatives such as Clean Development Mechanisms (CDMs)
that allow developed nations to score credits by funding climate friendly
projects in developing countries.
On top of this, they have their own decisions to make on what kind of
domestic legislation to use to get the message through to industry.
Their options include bully tactics such as UK's Climate Change Levy on
greenhouse gas polluters, incentive-based schemes like Germany's guaranteed
prices for greener electricity, or a combination of both styles.
But it will be the business community that does the emissions reducing, the
trading, and the innovating.
"Now (after Bonn) we have targets, timeframes, market mechanisms and
opportunities to develop some new energy technologies," said Nick Hughes,
environmental policy adviser to the British oil multinational BP Plc.
"Now that those elements are there and there's an opportunity to do something
on a global scale, the ball is really rolling."
Green investment funds springing up everywhere are not just focussing on the
obvious alternative energy plays.
Emma Howard Boyd runs the Environmental Research Unit of British fund Jupiter
Asset Management, managing two green funds worth about 230 million pounds
($330 million).
About 70 percent of her funds are in "solution providers" like Danish wind
power stock Vestas and the British public transport operation FirstGroup that
is involved in testing fuel cell powered buses.
But the remaining 30 percent is reserved for companies from a wide range of
sectors that are minimising their environmental impact.
"We believe we are focussing on the companies of the future," she said.
"There are strong drivers coming into place to encourage their growth."
Nevertheless, it looks as though Big Oil, the motor industry, and power
utilities are destined to play the biggest part.
"It's not a revolution we are looking at here, it's mainly about doing
existing things better," said David Kernohan, Manager of the Energy
Environment Service at the consultancy Cambridge Econometrics.
"The new fuel technologies and fuel efficiency improvements achieved by the
energy producers and motor manufacturers are major achievements, even if not
very flamboyant ones."
The prospect of emissions trading alone will bring the trading skills of
existing energy giants and gas and power traders like Enron into play.
And, of course, all the corporate oil producers - even the environmentally
conservative giant Exxon Mobil - recognise the shift to cleaner gas, and are
scrambling as fast as they can in that direction with their production
portfolios.
"Gas has a major role to play as a bridge to sustainability and we are
talking about decades in that role," said Frank Chapman, chief executive of
the gas-rich energy group BG.
Independent Power Producers (IPPs) like International Power and Calpine and
their construction partners are obvious beneficiaries of CDM projects,
building cleaner replacement plants in developing countries for maximum
carbon credit points.
But nuclear generators, too, are looking for rehabilitation, now that the
environmental focus is off the toxic waste debate and on CO2 emissions -
where they are zero emitters along with more expensive wind and solar power.

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

JAPAN: UPDATE 1-Kobe Steel to raise 165 bln yen for power business.

07/26/2001
Reuters English News Service
(C) Reuters Limited 2001.

TOKYO, July 26 (Reuters) - Kobe Steel Ltd, Japan's fifth-largest steel maker,
said on Thursday it would raise 165 billion yen ($1.34 billion) in project
funds from banks to launch an electricity wholesale business.
It will borrow funds from banks including Dai-Ichi Kangyo Bank, Sanwa Bank,
the Industrial Bank of Japan and Sumitomo Mitsui Banking Corp.
Kobe Steel is currently building two coal-burning power generators with
output capacity of 700,000 kilowatts each in the western city of Kobe, with
plans to begin supplying electricity to the wholesale market from April 2002.
As part of ongoing moves to deregulate the power industry, Japan opened up
the market for the supply of electricity to large-lot consumers in March
2000.
The electricity is supplied to office buildings and commercial centres among
others, and represents some 30 percent of the power market.
Only a handful of firms have been successful so far in taking business away
from Japan's 10 main power utilities, which until last year enjoyed a
regional monopoly on the wholesale business.
Some foreign firms have also expressed an interest in carving a niche, most
notably Enron Corp, a U.S. energy marketing and trading giant.
Japan plans to review its deregulation measures in 2003.
Kobe Steel's shares ended the day up 3.13 percent, or two yen at, 66 yen.
($1=123.58 Yen).

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

LOCAL
ENRON CANCELS MIAMI-DADE PLAN POWER PLANT BUILDER FAVORS DEERFIELD SITE
ELLIS BERGER Miami Bureau

07/26/2001
South Florida Sun-Sentinel
Broward Metro
4B
(Copyright 2001 by the Sun-Sentinel)

Enron Corp. is focusing its energies on building a power plant in Deerfield
Beach now that it has canceled construction plans for a site in far south
Miami-Dade County, a company spokesperson said Wednesday.
"We're not renewing our option on the Miami-Dade property," said Lea Sooter
in a telephone interview from Enron headquarters in Houston. "This makes
Deerfield Beach that much more important to the citizens of Florida. I don't
know what the big picture is for Florida, but there is a definite need for
power."
But Sooter refused to conclusively rule out the possibility Enron could
someday build on another site not far away in south Miami- Dade. She
acknowledged that a company project manager met with officials of Homestead,
a city faced with severe financial problems. But nothing came of the meeting.
"We were approached by the city of Homestead, and were listening to what they
could bring to the table," she said in a prior interview. "We do that all the
time on projects that never get developed."
Charles LaPradd, Homestead's communications and project manager, said city
officials had no specific site in mind, but let Enron know the company would
be welcome in the city that has its own power plant.
"It never went anywhere, but it's still open," LaPradd said. "It was a `we're
here' kind of thing. We showed our power plant to them. It's always good to
have backup. We have three of our 16 main generators down."
The Deerfield Beach project is currently stalled. Given the go- ahead in June
by the city's Development Review Committee, it was put on hold last week when
the Broward County Commission imposed a moratorium on new power-plant
construction. Enron officials said the company was considering legal action
as well as trying to convince the state Department of Environmental
Protection to intervene.
The moratorium, enforced by denying the air-quality operating permits are
required for power plants, is to end May 1.
Sooter said Enron's Miami-Dade decision was based on which site would best
serve the public interest.
"It is not unusual for us to look at multiple sites and choose to build on
the one that is going to work best for everyone," she said.
The action clears the way for Miami-Dade's Department of Environmental
Resources Management to close a construction landfill near the 61-acre site
at Southwest 256th Street and 97th Avenue, east of the Homestead Extension of
the Florida Turnpike.
Environmentalists and residents of the nearby Lakes of the Bay neighborhood
vehemently opposed the project. But Sooter said that opposition had nothing
to do with the switch in plans.
"Enron wants to be seen as the good guys," she said. "The primary benefit we
can give the residents of Miami-Dade is to let the county close the landfill
in a timely manner. DERM can now go forward on their own time line with Enron
out of the loop."

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

A Section
Rove's First Step Toward Shedding Stock Took 5 Months
George Lardner Jr.
Washington Post Staff Writer

07/26/2001
The Washington Post
FINAL
A04
Copyright 2001, The Washington Post Co. All Rights Reserved

Shortly before he was named as President Bush's senior adviser in January,
Karl Rove met with a transition team lawyer who took a look at Rove's stock
portfolio, heavy with companies that do business with the government, and
told him he would probably have to sell.
"He wanted it cleaned up as fast as he could," said the lawyer, Fred
Fielding. "He didn't want the bother." But Fielding advised Rove to wait
until he obtained a certificate of divestiture from government lawyers -- a
determination that the stocks did, indeed, pose a conflict -- in order to
defer paying capital gains taxes.
Yet, it took more than five months for that step to occur, and, in the
meantime, Rove met with officials or trade association representatives of at
least six of the companies in which he said he had more than $100,000 worth
of stock: Intel, Enron, General Electric, Johnson & Johnson, Pfizer and
Cisco.
Given Rove's preeminent position in the Bush White House and the size of his
holdings, those meetings have generated the very trouble Rove had said he
wanted to avoid. Democrats have seized on the meetings to accuse the
administration of the kind of ethical lapses that Republicans were quick to
jump on during the Clinton administration, and Rep. Henry A. Waxman
(D-Calif.) has demanded that Rove's conduct be referred to the Justice
Department.
Republicans have said the controversy smells of political payback -- "putting
politics before the facts," White House spokesman Dan Bartlett said of Waxman
-- and dismissed suggestions that the meetings constituted a conflict of
interest.
In a June 29 letter to Waxman, White House counsel Alberto R. Gonzales
defended Rove, saying that he "either had passing, inconsequential contacts"
with some of the companies in his portfolio "or participated in broad policy
discussions" on issues affecting them, such as energy policy. None of this,
Gonzales said, "presents an ethical problem under applicable regulations."
But several ethics experts said they thought that determination should be
made by the Justice Department, not the White House, although they said they
doubted a review would result in anything more than a civil penalty, if that.
One expert, a Republican who asked that his name not be used, blamed White
House lawyers for political ineptitude in failing to see that "top guys" like
Rove should have been given priority instead of being kept waiting for weeks
while lower-ranking staffers had their holdings reviewed.
"If the system had worked efficiently, within a short period of time, a
certificate of divestiture would have been issued, [Rove's] stock sold, and
that would have been it," the source said. "A lot of forms have to be
reviewed, but if there are problems, most of them are going to wind up on the
Fed Page. If the chief of staff or senior political adviser gets into
trouble, it's Page One."
Under the federal conflict-of-interest law, it is a crime for any government
official to take part "personally and substantially" in a government action
about any "particular matter" in which he or she has a financial interest.
Regulations issued by the Office of Government Ethics cover appearances of a
conflict, or situations that would not violate the criminal law but "would
raise a question in the mind of a reasonable person about [the official's]
impartiality." Failing to meet that standard can result in a reprimand,
suspension or dismissal.
President Bush told his staff at its swearing-in ceremony Jan. 22 that he
expected "every member of this administration to stay well within the
boundaries that define ethical and legal conduct. This means avoiding even
the appearance of problems."
According to the White House, lawyers from the counsel's office met with Rove
in early April and again April 24 to inform him of several options he had in
addition to selling his stocks. White House spokeswoman Anne Womack said
these included seeking waivers that would have allowed him to participate
despite a conflict or selling his stocks down to permissible "threshold
levels."
Rove said he still wanted to sell everything and the lawyers started working
on an application for a certificate of divestiture. Under OGE guidelines, it
amounted to an affirmation on Rove's part that he had to sell the stocks "to
eliminate or prevent a conflict of interest."
Waxman said last week that the White House did not have the power to judge
Rove's conduct. He cited the federal law requiring that executive branch
departments, including the White House, report to the Justice Department "any
information" relating to criminal violations by an employee.
"Congress appropriately believed that the Department of Justice would be in a
better position to render an impartial judgment than the employee's own
department or agency," Waxman wrote.
The Clinton White House was boxed in by that law on two occasions. Former
White House counsel Abner Mikva said he was forced to ask the Justice
Department whether national security advisers Samuel R. "Sandy" Berger and
Anthony Lake had violated conflict-of-interest rules by failing to dispose of
certain stocks after being told to do so.
Mikva said he viewed the violations as technical and completely
unintentional, but under the law he had no choice. "They had stock in a
couple of oil companies, nothing approaching a significant holding," Mikva,
now a law professor at the University of Chicago, said in an interview.
Berger and Lake "never met with the individual companies, but they were
dealing with the energy crisis," Mikva said. "Beth Nolan [Mikva's deputy]
brought it to my attention. She said, 'You've got to turn this over to
Justice.' I said, 'This is ridiculous.' She said, 'The law is very clear; we
have no discretion.' "
In Berger's case, he was told by White House lawyers to sell 1,500 shares of
Amoco Corp. that had been held for years in a trust established by his wife's
grandfather. He was reluctant, fearing a stiff tax for stocks held so long,
but he was informed in March 1994 that he had to sell since he was involved
in questions about whether to keep sanctions on Iraq and Libya, policy
decisions that could affect his stock. He was told he could defer his capital
gains taxes by using the proceeds to buy "permitted property" such as an
open-end mutual fund.
Berger agreed to sell, but then, sources have said, forgot to do so until
White House lawyers prodded him in mid-June 1995.
Lake was "even more innocent," Mikva said. Lake was told in 1993 to sell
stock in four energy companies -- Exxon Corp., Mobil Corp., Duke Power Co.
and TECO Energy Inc., because he would be making decisions on energy policy
as national security adviser. Mikva said Lake told his secretary to forward
the instructions to his broker, but she simply filed the instructions,
thinking the sales had been completed. Lake has said he discovered from his
broker in June 1995 that he still owned the stocks and sold them the next
day.
Justice "sat" on the cases for more than a year, Mikva said, but Lake
eventually paid a fine of $5,000 to close a civil probe, and Berger agreed to
pay $23,000. The Bush White House, Mikva said, "couldn't be more wrong" if it
thinks it can absolve Rove without Justice Department scrutiny.
Rove's March 12 meeting with Intel executives and associates has generated
the most controversy because they brought up a merger application that they
hoped the government would approve.
Gonzales said Rove was "noncommittal and offered no substantive response."
The White House counsel said the matter was in the hands of an interagency
review panel "on which Mr. Rove did not sit and in which he played no part."
New York University law professor Stephen Gillers said he did not think Rove
could be called to account for saying, "The people handling this are Joe and
Harry.' I realize they may then go to Joe and Harry and say, 'Karl sent me,'
but I don't think this violates the rule."
Another ethics specialist, Monroe Freedman, disagreed, saying Rove created
"an appearance of impropriety" simply by meeting with Intel when he held more
than $100,000 worth of stock in the company.
"The problem you have is that a reasonable person would question the
propriety of what went on," Freedman said. "We are not required to accept
what they say about their meeting not having anything of substance to it."
Gonzales said Rove sought no waivers because he "took care to avoid" any
direct participation in matters that would have required one. Gonzales did
not address the question of an appearance of impropriety, but White House
spokesman Bartlett said Rove rejects the notion that he had created one.
In addition to the Intel meeting, the White House has also acknowledged that
Rove attended meetings that helped shape the administration's energy policy
at a time when he owned a substantial amount of energy company stock,
including Enron Corp., the Houston-based natural gas and electricity trader
embroiled in energy disputes in California, and General Electric Co., which
has a nuclear power division. He also reported holdings of up to $50,000 each
in Royal Dutch Shell Group and BP Amoco.
Rove spoke with Enron Chief Executive Officer Kenneth Lay on subjects ranging
from energy policy and global warming to appointment of an Enron-favored
candidate to the Federal Energy Regulatory Commission.
Gonzales said that Rove was not a member of the task force that developed
Bush's energy policy and that the discussions he took part in about "the
contours" of the policy were general and had no direct and predictable impact
on his Enron holdings.
Rove also met March 20 with a group of executives from the Nuclear Energy
Institute, which develops policy on key legislative and regulatory issues
affecting the nuclear power industry and which counts GE's Nuclear Energy
division as one of its members.
On May 11, he met with John Chambers, president of Cisco Systems Inc., which
makes Internet routing equipment, during a trip to Palo Alto that Rove made
for the Republican National Committee. On June 5, Rove set aside half an hour
in his office for an introductory meeting with two lobbyists from the
Pharmaceutical Research and Manufacturers Association; its members include
Johnson & Johnson and Pfizer Inc.
He finally received his divestiture orders June 6 and sold all his stock June
7.
Staff researchers Lynn Davis and Madonna Lebling contributed to this report.

http://www.washingtonpost.com
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Insider Selling by Enron Execs Speaks Louder Than Their Words
By Christopher Edmonds  <mailto:cedmonds@thestreet.com>
Special to TheStreet.com
7/20/01 7:32 AM ET
URL: <http://www.thestreet.com/funds/chrisedmonds/1496696.html>

At Enron, actions are speaking differently than words.
At the same time as Enron Chairman Ken Lay and Enron President and CEO Jeff
Skilling were touting their company's stock as undervalued, both were in the
process of selling hundreds of thousands of shares.
In an exclusive interview </comment/streetsidechat/1186095.html> with
TheStreet.com last November, Lay suggested that Enron stock -- then trading
in the mid-$70s at nearly 50 times earnings -- was undervalued. "Comfortable
that it's worth that [50 times earnings], yes," he said. "As a matter of
fact, some of us here and, of course, many analysts would maintain that even
that is undervaluing the company."
Yet, since the beginning of the year, Lay has simultaneously exercised and
sold nearly 400,000 shares, continuing a program of exercising options and
selling the shares that dates back to last November. This year's sales were
all at prices below the November prices at which he said the shares were
undervalued. According to data compiled by Thomson Financial/First Call,
Lay's options transactions occurred between $52.95 and $82 a share.
In February, Lay stepped down as Enron's CEO, retaining the title of
chairman.
Skilling's words and actions were similar. During a January analysts and
investors meeting in Houston, Skilling said he believed Enron stock was worth
$126 a share. At the same time, he was in the middle of completing sales of
130,000 shares of Enron stock he registered in November 2000. Since January,
Skilling has registered for sale an additional 270,000 shares of Enron. And
since the first of the year, he has sold stock at between $52.95 and $80.57 a
share.
Both Lay and Skilling still hold large positions in Enron. As of May 30, Lay
and his family reportedly owned more than 2.66 million shares, and Skilling
controlled more than 1.1 million shares. They each acquired more than 100,000
shares from the company in January.
Enron spokesperson Mark Palmer says the sales are "program sales" that
involve the exercise of expiring options and the sale of stock to cover the
costs and tax liability, a common practice among executives at many major
corporations.
And, Palmer notes that Enron's compensation makes such sales almost routine.
"A very significant portion of senior management's compensation is paid in
equity," he says.
Mixed Messages
Analysts and investors worry about the messages such high-level insider sales
send, especially when at the same time executives are touting the stock's
appealing value. "Certainly, it's a concern to see the chief executive
selling so aggressively," says Jeff Dietert, an analyst at Simmons & Co., a
Houston energy investment boutique and a member of the TSC Energy Roundtable.
</comment/streetsidechat/1242533.html> "Especially when they are saying the
stock is undervalued. That sends a very mixed message to investors."
While acknowledging Enron's unique equity-based compensation program, Dietert
says recent selling at the top is unique. "You constantly see a regular group
of people selling as they monetize their compensation" at Enron, he says.
"However, the larger sales from senior executives are different. Sales have
been weighted much more heavily to Lay and Skilling than they have been in
the past."
Dietert's 12-month price for Enron is $58, and his firm has not provided
banking services to Enron. Simmons does not rate companies.
Another analyst who asked not to be named was more critical. "The [insider
sales] are disconcerting to say the least. In a market like this where the
slightest indication of lack of confidence sends a stock down precipitously,
their actions are speaking louder than their words."
Dream vs. Reality
One reason for the mixed messages may have been the company's belief in
broadband. At the time Skilling made his now famous $126 tout, he indicated
that nearly $40 of value would come from Enron's now flailing broadband
business. As my colleagues Adam Lashinsky
</comment/siliconstreet/1489696.html> and Peter Eavis
</comment/detox/1489630.html> have aptly chronicled, Enron's great dream for
broadband turned into a nightmare.
"The world certainly looks a lot different today than it did in January,
especially to Enron," says Tom McIntyre, president of Dessauer & McIntyre
Asset Management, a Massachusetts-based investment adviser. "You sure don't
see projections from anyone assigning value to broadband now." In fact, on
Enron's second-quarter earnings call, Skilling lamented the fact that
investors seem to be assigning negative value to the company's telecom
operations. McIntyre holds a long position in Enron.
Still, investors might have expected Skilling's words to be backed by his
actions. When he made the bullish comments in January, Skilling was selling
stock even though the shares were trading near $80 a share, a 57% discount to
his target price. That led the analyst to quip, "If it's not an expensive
stock, why are they out there selling it?"
To others, however, the sales are just noise that distracts from a solid
growth story. "You would prefer it if they would never sell," says McIntyre.
"I'd rather watch them hold the shares like I do. However, [Skilling] still
owns well over a million shares, and the consistent sales suggest they have a
program to sell whether the stock is near its high or at its lows." (Records
show that Skilling has been selling 10,000 shares each week since
mid-November.)
The two executives "have a long record of creating and sustaining value for
shareholders. I have a high level of confidence that Skilling can continue
that record," McIntyre said.
But appearances count. "It's a question of perceptions," says McIntyre. "In
this market, anything can get a company, and the insider-sales news does
hurt."
That's especially true when actions and words don't mesh. As the analyst
quipped, "It's what they call an oxymoron. You are saying one thing and doing
another."

Enron's Own Dot-Com Bubble Finally Popped
By Adam Lashinsky  <mailto:alashinsky@thestreet.com>
Silicon Valley Columnist
7/13/01 9:58 AM ET
URL: <http://www.thestreet.com/markets/adamlashinsky/1490114.html>

Enron (ENE <http://tscquote.thestreet.com/StockQuotes.jhtml?tkr=ENE>:NYSE) is
no longer an Internet company.
Of course, the Houston-based energy distribution and trading concern never
was a dot-com, though it tried to convince Wall Street it was. In early 2000,
Enron went so far as to suggest to investors the precise value of its nascent
money-losing bandwidth business. Wall Street obediently obliged, inflating
Enron's share value by as much as 75% from the time the company started
bragging about its prospects, a disconnect noted disapprovingly here
</comment/siliconstreet/928870.html> a year ago April.
Now that dot-com valuations have gone the way of full-service gas stations,
Enron is finally owning up to reality regarding the broadband business. "It's
like someone turned off the light switch," Enron President and CEO Jeffrey
Skilling told investors Thursday morning while announcing an otherwise solid
quarter. "Revenue opportunities have just dried up."
Indeed, Enron recorded a $109 million loss related to its broadband
businesses, compared with income before interest, minority interest and taxes
of $17 million in the year-earlier period. Skilling noted that Enron would
dramatically scale back the burn rate for its broadband business and that the
expectations for resuming progress in this market have been pushed back by at
least a year.
The story was so different a year and a half ago. With Enron's shares trading
in the low 50s, Enron convinced analysts -- who openly admitted their
ignorance of the telecommunications issues important to the broadband market
-- that bandwidth delivery opportunities were huge. Enron cajoled the stock
price into the $90s by August, after telling analysts that the broadband
business alone was worth $37 per share, or $27 billion.
Today, despite sound performance in its key, wholesale energy-distribution
business, Enron's shares are worth $49.55. Even Wall Street, convinced
perhaps that the prospects for an IPO of the once-hot Internet operations are
totally dead, has gone back to analyzing energy prospects.
Ronald Barone, a "natural gas/energy convergence" analyst with UBS Warburg in
New York, lowered his price target Thursday on Enron from $102 to $70. In a
report, he noted that his earlier projected price applied a multiple of 40 to
his previous 2002 earnings target of $2.10 per share and $17 worth of value
for broadband services. Now Barone assumes 32 to 33 times estimated 2002
per-share earnings of $2.15 (the same EPS estimate CEO Skilling offered on
Thursday's conference call) and zero value for broadband.
Enron must be one of the most promotional companies on the planet. If
investors played the old Bob Newhart drinking game and had to refill their
mugs every time Skilling said "outstanding" in relation to second-quarter
performance, they would have been drunk before the question-and-answer
session. But Skilling doesn't like the new reality.
"Everything has been taken out of our stock for the bandwidth business," he
correctly observed. "We are probably getting a negative impact on the stock,
and I don't think that's right."
Interestingly, as recently as January, management at Enron suggested to Wall
Street that its discounted cash-flow models suggested a value of $126 for the
stock, including $40 a share for the broadband business. Why companies feel
it's proper even to comment on their own stock prices is a wonder. Skilling
had nothing to say about the $126 valuation, and analysts didn't query him
about it.
Oh, it's right all right. No longer the bright shining prospect, broadband is
a real drag on the company now, albeit a small one. Robert Franson, an
analyst with Bear Stearns in New York, notes that the old IPO rumor has been
replaced by one suggesting Enron will sell or lease its broadband network
while maintaining the services businesses built around it. "One great thing
about Enron is that it is constantly getting out of businesses that aren't
right," he says.
Bear Stearns had the luxury of initiating coverage on Enron only in December,
so it was able to sidestep the trap of perceived value to the broadband
business. Donato Eassey of Merrill Lynch is hanging on to hope. "We believe
Enron at current prices offers investors a free call option on the future of
broadband, and the ultimate turnaround in the telecom market once it occurs,"
he told clients in a report. Eassey has a price target of $74.50 on Enron's
shares.
For what it's worth, in April 2000 Enron traded for about 43 times Wall
Street's 2001 earnings estimates of about $1.65 per share. Now the company
predicts 2001 EPS of $1.80 (showing the success of its main wholesale
business), and is valued at about 23 times its own 2002 earnings estimates.
It's worth noting that Enron is a good example of a company that has taken
advantage of the Internet. Skilling said 60% of the company's transactions
occurred on the Internet in the second quarter. That's impressive, but no
more so than all the business Dell or Cisco does online. Efficient use of
Internet infrastructure does not an Internet company make.
Interestly, Enron is in much better shape than the upstart companies to which
it eagerly compared itself 18 months ago in justifying a higher valuation. By
giving up all of the hype-driven market value it received from gullible
investors with dot-com stardust in their eyes, Enron merely is back to about
where it belongs, or, as Skilling argues, perhaps a little lower. Comparable
stand-alone "bandwidth" companies like Akamai and Exodus have given up most
of their boom-time value.
Enron prudently says it will maintain a stake in the ground of broadband
services so it can benefit when the market materializes. Perhaps when that
happens, Wall Street will value the incremental business for what it's worth,
not what they dream it's worth.


Hi Ed,

This transaction should close within the next 5-7 days.  Will the original
minute books be ready?

Thanks,

Kay


Robert,

Ken developed an industrial report before he left.  It can be found at
o/logistics/kenseaman/industrialsmonthly/...  There is one file for each
month of 2000.  I need you to update this for March.  This will need to be
distributed to Gas Control, Logistics, and myself.  Let me know if you have
any questions.

D


I do not appear to be having a winning record for getting my approval list
right the first time today.  Attached is also a revised list for 01/31/00.
Mea culpa, mea culpa, mea maxima culpa...


This is a pretty good general reference on Ontario.


I vote for you.

From: Ben Jacoby/ENRON@enronXgate on 06/01/2001 04:08 PM
To: Kay Mann/Corp/Enron@Enron
cc: Fred Mitro/ENRON@enronXgate

Subject: RE: TECO

Do you want to send the LOI to TECO, or should I?

 -----Original Message-----
From:  Mann, Kay
Sent: Friday, June 01, 2001 1:32 PM
To: Mitro, Fred
Cc: Jacoby, Ben
Subject: RE: TECO

I don't believe we need Keffer's input to process the LOI.  I can have their
power guy look at the term sheet if we think we are done with it.

From: Fred Mitro/ENRON@enronXgate on 06/01/2001 12:42 PM
To: Kay Mann/Corp/Enron@Enron
cc: Ben Jacoby/ENRON@enronXgate

Subject: RE: TECO

Kay:

I will review your comments on the LOI.  I wanted to check with make sure
that someone at King & Spalding is reviewing the Midway term sheet along with
the LOI, so that we can send the term sheet to TECO on Monday/Tuesday.

Let me know.

Fred

 -----Original Message-----
From:  Mann, Kay
Sent: Friday, June 01, 2001 11:45 AM
To: Jacoby, Ben; Mitro, Fred
Cc: jkeffer@kslaw.com
Subject: TECO

Ben,

I made a minor adjustment to the LOI re: exclusivity.

 << File: Midway TECO LOI june 1.doc >>

Policy states that any time we sign up to exclusivity we are supposed to get
it approved by Mark Metts, Tim Detmering and the CEO of the affected business
unit.  Seems a little silly in this case, but it can't hurt. (yes, I know we
didn't do it with the turbine stuff)

Kay


I'll try to give you a call tomorrow

----Original Message-----
   >From:      Rizvi Tabish <tabish.rizvi@capco.com>
   >To:          "'whalley@enron.com'" <whalley@enron.com>
   >Cc:          "'liz.m.taylor@enron.com'" <liz.m.taylor@enron.com>
   >Bcc:
   >Subj:      Request for a Recommendation
   >Sent:     Wednesday, December 06, 2000 11:37 AM
   >
   >Greg,
   >
   > I'm sure that Liz has alaredy informed you that I've called a couple
   >of times to speak with you.  My reason for calling is that I am currently
   >working on my applications for business school and as I'm sure you can
   >appreciate, recommendations are a very important part - since you attended
   >Stanford yourself.  I remember speaking with you about graduate school a
   >while back when I was in Houston, and the words "it's a crap shoot" still
   >stick in my head.  That's what you called the application process and I'll
   >never forget the quote.  As I plan to apply, I will most definitely see
   >first-hand how true these words are.
   >
   > In any event, I need three people with whom I have forged great
   >relationships with in my professional and academic career(s) who would be
   >able to write me a "first-class" recommendation.  I feel that you are
   >definitely one of these people.  I still hope that Enron would open an
   >extensive presence in New York; I would must rather be there.  I really
   >liked what I did; u
   >
   ><truncated...>


The following are summaries of legislation that we worked on this year:

AB995/SB1194
In their original form these bills would have:
Codified existing utility responsibilties for the distribution grid without
ensuring ecquivalent protection for customers' existing rights to
interconnect their own facilities to the distribution grid and to invest in
cost effective facilities that they allowed to build and use today
Limited the CPUC's pending rulemaking on dg and dc before there was adequate
discussion of the important and controversial policy issues
Borrowed language from 1890, reciting only the language which supports
utility control of the dg while omitting the portions that state customers
and competitors should have open and comparable access to the dg
provided no mechanism to ensure increased reliability for electric consumers
Included an inaccurate "laundry list" description of all the things that
utilities and ESP's shall continue to be responsible for

All of the above was iriginally drafted in language expanding the utilities'
rights and franchise authority, and provided greater certainty of cost
recovery in situations where the utilities have traditionally borne
significant risk

As amended, the bill only codified the CPUC's existing jurisdction and the
utilities' existing tole as to facilities owned by the utilities, and
included numerous restrictive clauses to prevent expansive interpretation of
the statute in favor of the utilities

AB2290

This bill would have done the following:
capped electric rates in San Diego at the same level required under 1890
which would have created as much as $1 billion in undercollection
provided that the same customers who recive the benefits of the rate cap
today may not necessarily have to pay back the undercollection, thereby
promoting cost shifting.
limited the CPUC to implementings steps which allow the utility to fix the
wholesale markets problem without prividing similar opportunites to non
utilities
required the CPUC to petition FERC to find that wholesale rates from this
summer were not just and reasonable and to seek means to force power
marketers and generators to disgorge excessive profits

AB265

This bill which became the final vehicle contained a simplified version of
AB2290, but patterned on the Wood decision

Enron helped dissuade the authors from accepting the following amendmants
provided that the rate cap would ahve applied to all customers of all three
utilities
Provided that all classes of customers be included in the bill
provided that it would be a freeze and not a rate cap
we advocated for a reduced term to the cap and it was reduced to two years,
as opposed to the original proposal for 3-4 years

AB970

Enron helped make the following amendments to the bill

Labor and environmental interests sought to include stricter definitions
related to air quality under the federal act and to limit the operations of
peaking plants to stage II alert situations.  These were deleted from the bill
Labor sought to include rate regulations of the output of expedited peaking
plants.  This provision did not make it into the bill
Renewable providers sought a cleanest first processing priority of all CEC
applications..this was deleted
The Electricity Oversight Boars was irignally designated as the entity with
whom peaking plants had to contract with.  This was amended to give the EOB
only consultive authority to contact the ISO regarding peaking agreements and
with the CPUC regarding interconnection issues
A limit of 500 hours of operation per year was deleted from the bill
Language drafted by Enron was inserted to clarify that local gov had to
sibmit final comments/determinations within 100 days of filing an expidited
peaking application
Language clarifing that an expedited peaking platn could be taken out of
service in lieu of converting to a combined cycle plant after three years was
taken at our request
language regarding the recovery of transmission upgrade or expansion project
costs was clairified to ensure that no transmission related costs were
included in utility distrbution rates
We kept the bill to be voluntary, in lieu of existing processes

SCE/PGE proposal

Lobbied against their legislative proposal which would have extended the rate
freeze and continued CTC collection indefinitely.  The proposal would have
also provided a mechanism to recoup increased wholesale costs for electricity
which exceeded the frozen rate charged to customoers.  We were successful in
keeping them from finding an author

SB1622

Helped defeat a bill that would have authorized the CEC to develop
regulations, retroactively, relating to power plant siting and environmental
justice

SB1345

Enron sought and obtained deletion of provisions which would have restricted
dg plants from obtaining improved interconnection or standby service unless
they were prohibited from selling power off-site.  The bill merely limited
the funding of state grants to DG projects which do not sell off site.


Mary Hain has resigned her position with Enron.  Please remove her from all
your mail lists.

Thank you.

Lysa Akin
Gov't Affairs - Sr. Admin. Ass't.

	Enron Capital & Trade Resources Corp.

	From:  Terry Mundorf <terrym@millcreeklaw.com>
03/22/2001 10:16 AM

Please respond to terrym@millcreeklaw.com
To: abuckley@wutc.wa.gov, alan@epud.org, ali.rodol@ci.seattle.wa.us,
archive-power-ratecase@bpa.gov, aw_turner@pgn.com, BASSL@sce.com,
bessex@cowlitzpud.org, bferranti@mbllp.com, bpadiscovery@merkellaw.com,
ccopatrny@e-z.net, crow@millernash.com, cub@teleport.com, cwagers@dcpud.org,
dan.meek@usa.net, darcy@tonkon.com, darkills@popud.com, dbkinnard@pplmt.com,
dfaulk@puget.com, discoveryparalegal@bpa.gov, dldorrell@stoel.com,
dmacgregor@morganlewis.com, doney@doneylaw.com, doug_brawley@pngc.com,
dparrish@prmllp.com, dws@keywaycorp.com, eauverde@hotmail.com,
eboyd@ppcpdx.org, efinklea@energyadvocates.com, elisaCKF@aol.com,
EnerGlaw@aol.com, Eric.Larson@oremetwahchang.com, erick_johnson@pngc.com,
ghuhta@cowlitzpud.org, huse@eesconsulting.com, ias@dvclaw.com,
jack.speer@alcoa.com, jacksonc@ida.net, janet.prewitt@state.or.us,
jdeason@chbh.com, jeffn@subutil.com, jhartso@enron.com, JLH@mc-power.com,
johk@critfc.org, john.yanov@eweb.eugene.or.us, johncameron@dwt.com,
jolynnr@mresearch.com, jpw@duncanallen.com, jrb_ora@televar.com,
jsaven@pacifier.com, jschlect@avistacorp.com, kevin.clark@ci.seattle.wa.us,
kknitte@gcpud.org, kmoxness@cencoast.com, kpom@mail.pacifier.com,
kyle@ppcpdx.org, lawyer@teleport.com, Lhamilton@avistaenergy.com,
lpeters@pacifier.com, lwolv@worldaccessnet.com, lyn_williams@pgn.com,
marc.hellman@state.or.us, marss@perkinscoie.com, matts1@atg.wa.gov,
mershanlaw@aol.com, mhain@ect.enron.com, michaelearly@earthlink.net,
mike.macdougall@powerex.com, mmetzler@ci.tacoma.wa.us,
mschaff@worldnet.att.net, mthomas@mtpower.com, Paul@KinergyLLC.com,
pete.forsyth@kaiseral.com, pete@ashland.or.us, peter@richardsonandoleary.com,
pfox@bracepatt.com, pljacklin@stoel.com, pmurphy@mbllp.com,
pnichols@idahopower.com, pobenchain@idahopower.com, pspi@dynegy.com,
pvickery@tpud.org, rachel@rnp.org, ratecase@pngc.com, rates@ppcpdx.org,
rbstrong@painehamblen.com, rdb@keywaycorp.com, rfoiani@gcpud.org,
rkindley@schwabe.com, rle@givenspursley.com, rpierce@avistaenergy.com,
scott.brattebo@pacificorp.com, seligman@teleport.com, simonf@atg.wa.gov,
sjohnsto@wutc.wa.gov, skaravit@ci.tacoma.wa.us, stephens@eslerstephens.com,
steve@nwenergy.org, tdeboer@painehamblen.com, terrym@millcreeklaw.com,
tgrim@chbh.com, townsend@chbh.com, tracigrundon@dwt.com,
tstevenson@ci.burbank.ca.us, weavertr@yakima-wa.com, wmgt3@montana.com
cc:
Subject: WP-02 Data Response

request_number:  DS-WA:017
firstname:  Terry
lastname:  Mundorf
e-mail:  terrym@millcreeklaw.com
exhibit_wp-02-e-:  JGC-01, 02
page_numbers:
request_text:
request_text:  Please disclose and/or produce any and all communications from
October 16, 2001 to the present, between any of the party representatives
listed below and any representative of BPA concerning rates to be in effect
for BPA's Fiscal Years 2002-2006, the interactions of such rates and customer
contracts, or procedural aspects of rate these proceedings.

 Terry Mundorf (WPAG)
 Lon Peters (PGP)
 Linc Wolverton (ICNU)
 Scott Brattebo (PacifiCorp)
 Kevin Clark (Seattle City Light)
 David Hoff (PSE)
 Geoff Carr (Northwest Requirements Utilities)
 Dennis Parrish (Market Access Coalition Group)
 Pam Jacklin (PacifiCorp)
 Peter Richardson (PPC)
 Kyle Sciuchetti (PPC)
 Ray Kindley (PGP)
 Jay Waldron (PGP)
 Doug Brawley (PNGC)
 Eric Johnson (PNGC)
 Darcy Norville (PGE)
 Lynn Williams (PGE)
 Steve Weiss (Northwest Energy Coalition)
 Mark Hellman (OPUC)

For purposes of this Request, "disclose and/or produce" has the meanings
described below.  With respect to oral communications, "disclose and/or
produce" means to describe the time, date, approximate duration, and
substantive content of the communication; the identity and organizational
affiliation of the communicating individuals; whether the communication
occurred in person or by telephone; the location of the communication if in
person; the identity of any witnesses to the communications, including all
individuals in the room if the communication occurred by speakerphone; and
whether the communication was made in the presence of or after coordination
with BPA counsel (if so, identify such counsel).  For purposes of this
Request, you need not "disclose and/or produce" oral communications that
occurred during meetings noticed in compliance with Rate Case Rule 1010.7(d).

With respect to written communications, the Request includes communications
in any recorded form, whether on paper, electronic (including, without
limitation, e-mails), or whatever form.  For such communications, "disclose
and/or produce" means to provide copies of all non-identical versions of any
written communications and to describe with particularity the location where
such communications were found and/or stored, including the identity of the
individual with possession or control of the written communications; to
describe with particularity the circumstances under which they were generated
or referred to; and to fully "disclose and/or produce" any oral
communications made in connection with the written communications consistent
with the preceding paragraph.  For purposes of this Request, you need not
produce papers served on all parties to the rate case and made part of the
official file in the rate case.

response_text:  WPAG objects to this Data Request on the grounds that it (1)
seeks information that is not relevant and (2) seeks information that is
unduly burdensome to produce.  (Rules of Procedure Governing Rate Hearings,
Section 1010.8(b).)  WPAG further objects to this Data Request on the grounds
that it is in improper form, as it does not cite to specific testimony or
indicate the specific use to which to information sought will be put,
(Special Rules of Practice, WP-02-O-01.)and was received after the deadline
for submission of data requests.  Without waiving the foregoing objections,
we respond as follows:

See response and exhibits to DS-WA:017

The following information is from the web server:
1.  Logon: IUSR_GRANITE
2.  Remote Host:  router.millcreeklaw.com
3.  Remote IP Address:  204.57.181.3
4.  Form URL:
https://secure.bpa.gov/power/secure/psp/ratecase/discovery/wp_02_response.html
5.  Browser Client:  Mozilla/4.0 (compatible; MSIE 5.01; Windows 95)


Monica,

Please include Rahmaan Mwongozi and Binh Pham on the distribution for the
Basis Report each night.

Thank you,
Robin


Leave IAH 7:40 AM
Ar Austin 8:30 AM

Lv Austin 8:15 PM
Ar IAH 9:10 PM


[IMAGE]	?

You may want to register in  advance of the International Contemporary
Furniture Fair, which begins 19 May in New York,  at the second annual vote
at designzine.com.  In a couple of weeks, we will remind when ballot casting
begins.

Whether you register now or  cast your ballot later, you automatically become
eligible to win a super high-design  product. Last year,s prizes included a
felt chair by the Blue Dot boys, the  gold anniversary edition of Starck,s
Juicy Salif, and an Emeco aluminum chair.

Since there will be a vast  number of off-site parties, exhibitions, and
other events concurrent with the  fair, you will need one or all of these
guides, available at the Javits Center  or on newsstands:

Interni magazine
Interior Design/Abitare Italia 2001

Prospects by the Passagen/Cologne  Group

The ICFF bound-in  card in Time Out New York magazine, 17 May issue

In our own publication,  designzine.com, look into some of the new articles
from our ,zine members,  which include a piece on Thomas Sandell and the
resurgence of Scandinavian design,  by Monument,s Claes Britton. Thomas  has
come a long way since designing for IKEA. Also, Rowan Moore provides some
insights into Santiago Calatrava and his first two American buildings, in
Metropolis.

Back to the ICFF  and the in-town events*even though they,re about business
for most of us, they  can also be fun. So have some, but go easy on the
cocktails.

?

Cordially,

Mel Byars
Editorial director
designzine.com

?

If you would like to remove your e-mail address from  our mailing list,
please click here.

?

?

?


Thank you for your e-mail.  I have taken the liberty of forwarding your
information to Cindy Olson, Executive VP of HR.  You may contact Cindy
directly at 713-853-7418.

Thanks,
Joannie Williamson
Assistant to Jeff Skilling
713-345-7774
713-646-8381 (fax)
joannie.williamson@enron.com

"Tony Kishindo" <dewolffboberg@worldnet.att.net> on 04/02/2001 10:02:32 AM
Please respond to <tony.kishindo@dewolffboberg.com>
To: <jeff.skilling@enron.com>
cc:

Subject: DeWolff Boberg & Associates

4/2/01

Jeff Skilling
CEO
Enron Corporation
1400 Smith
Houston, TX 77002

Dear Mr. Skilling:

My name is Tony Kishindo and I am the Senior Market Analyst for DeWolff
Boberg and Associates. I am approaching you with hopes of scheduling some
time on your calendar for an introductory meeting between yourself and my
Vice President, Scott Bein.

The meeting is 45 minutes long and we are not looking for any sort of
commitment or decision at this point. We realize you may not be considering
the services of an outside resource, now or in the foreseeable future. We
non-the-less would appreciate the privilege of meeting with you, determining
the compatibility of our two firms, and earning a place in your Rolodex.
Regardless of the outcome of this meeting, we sincerely appreciate your
kindness and courtesy.

We offer our clients guaranteed process improvement and operations cost
reduction. We guarantee a 20% - 30% increase in production in as little as 8
months. The reason the results are so quick is because we are not technology
peddlers, we focus in on people, equipment and materials which we have found
to be any companies most valuable assets. We offer our clients a security
blanket when it comes to process improvement. Please feel free to visit our
home page at, www.dewolffboberg.com.

Thank you for your time, I look forward to scheduling 45 minutes of your
time at your nearest convenience.

Sincerely,

Tony Kishindo
DeWolff Boberg & Associates
800 800 6030
tony.kishindo@dewolffboberg.com


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Below is a summary of upcoming RTO-related events that Enron is participating in.

************************************************************************************************

Week of October 22

Regulatory proceeding before the Indiana Commission on the transfer of control of transmission assets by the IN IOUs to MISO and Alliance.

Wednesday, October 24

FERC Meeting - Discussion of RTO Developments for the Northeast, Southeast, and Midwest.  Separate docketed items include (1) Reliability, Security and Market Operations, and (2) Electricity Market Design and Structure.

October 29 - 30

Illinois Energy Leadership Conference - Illinois Commissioner Edward Hurley and Richard Sergel, President & CEO of National Grid USA to discuss RTOs.

October 31/November 1

Western Interstate Energy Board and Western Governor's Association Conference in Seattle - Issues to be addressed are Multi-State Protocols for Transmission Siting/Permitting, and the Western RTOs and Seams Issues.
FERC RTO NOPR on Market Design to be issued
FERC orders in Northeast, Southeast and Midwest RTO proceeding


You can run but you can't hide!

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 03/07/2001 04:32
PM ---------------------------

	From:  Chris Booth                           03/07/2001 10:58 AM

To: Kay Mann/Corp/Enron@Enron
cc:

Subject: LLC Purchase Letter Agreement

For your reading pleasure.  Enjoy!
---------------------- Forwarded by Chris Booth/NA/Enron on 03/07/2001 11:03
AM ---------------------------

	From:  Chris Booth                           03/01/2001 08:37 AM

To: michael.young@northwestern.com
cc: Ben Jacoby/HOU/ECT@ECT, Fred Mitro/HOU/ECT@ECT

Subject: LLC Purchase Letter Agreement

Michael,

Please find attached a draft of the LLC purchase letter agreement for your
review.  Please feel free to call to discuss.

Thanks,

Chris


Please see the attached Work Request.

This is an urgent work request.

Thanks,
Hollis

---------------------- Forwarded by Hollis Kimbrough/EWC/Enron on 04/08/2002
03:44 PM ---------------------------

Dan Lindquist
04/08/2002 02:23 PM
To: Hollis Kimbrough/EWC/Enron@ENRON, Kevin Cousineau/EWC/Enron@ENRON
cc: Val Artman/EWC/Enron@Enron

Subject: FAR MR/SS

Gentlemen,

Please review and comment.

Thanks

Daniel J. Lindquist
---------------------- Forwarded by Dan Lindquist/EWC/Enron on 04/08/2002
02:33 PM ---------------------------

Phil Waddell
04/08/2002 02:06 PM
To: Val Artman/EWC/Enron@Enron
cc: Dan Lindquist/EWC/Enron@Enron, Joe Thorpe/EWC/Enron@Enron, John
Nemila/EWC/Enron@ENRON, Kevin Cousineau/EWC/Enron@ENRON, Mike
Messier/EWC/Enron@ENRON, Dave Schulgen/EWC/Enron@ENRON

Subject: FAR MR/SS

Please include the attached March production data from Mill Run with the FAR.

---------------------- Forwarded by Phil Waddell/EWC/Enron on 04/08/2002
02:10 PM ---------------------------

Phil Waddell
04/08/2002 01:55 PM
To: Val Artman/EWC/Enron@Enron
cc: Dan Lindquist/EWC/Enron@Enron, Joe Thorpe/EWC/Enron@Enron, John
Nemila/EWC/Enron@ENRON, Kevin Cousineau/EWC/Enron@ENRON, Mike
Messier/EWC/Enron@ENRON, Dave Schulgen/EWC/Enron@ENRON

Subject: FAR MR/SS

Please find the attached FAR.

Best regards,

Philo


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Charles Schwab & Co., Inc.
Email Alert

Morning Market View(TM)
for Wednesday, January 2, 2002
as of 9:30AM EST
Information provided by Schwab Center for Investment Research

STOCKS SLIGHTLY HIGHER TO KICK OFF NEW YEAR

Against the backdrop of little corporate or economic news,
stocks are poised to open slightly higher, with technology
leading the way following an upbeat Semiconductor Industry
Association report. Chipmaker Micron Technology (MU,31,f2) is
higher in premarket activity following news that a potential
partner raised DRAM prices by 30%. Treasuries are slightly
lower, while global markets are mixed as today marks the
official transition to the euro currency in the euro-region.

Chipmakers could get a boost this morning after the
Semiconductor Industry Association (SIA) reported that global
sales of semiconductors rose 1.6% in November to $10.6 billion,
the second consecutive monthly increase after October's sales
rose 2.5% to $10.44 billion. SIA also indicated the industry is
on pace to realize 4.7% growth in 4Q sequential sales.
Continuing the improving theme, shares of Micron Technology are
higher in the premarket session after South Korea's Hynix
Semiconductor (HXSCF,0.80) raised the price of its memory chips
by 30%, its third increase in a month. Separately, Hynix
indicated this morning that it will wrap up merger talks with
Micron this month.

Media conglomerate Walt Disney Co. (DIS,21,f2) was granted a
temporary restraining order prohibiting satellite-TV operator
EchoStar Communications (DISH,27,f1) from dropping the Dow
component's ABC Family channel from its listings. EchoStar
claims Disney's purchase of ABC Family from News Corp. (NWS,32)
in October voided the network's contract.

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manufacturing index is expected to rise to 46.0 in December from
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European bourses are lower amid a report that the euro-zone
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of 8:52 a.m. EST, paced by declines in telecom equipment and
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Asian stocks were generally higher, led by semiconductor stocks
following Hynix Semiconductor's 30% increase in the price of its
DRAM chips. Japan's Nikkei 225 index remains closed for a
national holiday, while the yen is trading slightly lower
against the dollar.

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FUTURES WATCH

In the March Globex futures contract as of 8:52 a.m. EST, the
S&P 500 index was unchanged while the Nasdaq 100 index was 9
points higher (10 points above fair value). The March DJIA
futures contract was up 49 points (1 point below fair value),
and the February crude oil futures traded on the NYMEX were up
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Tana

Would you mind forwarding this list to Marcus Vialli

Many thanks

Justin

---------------------- Forwarded by Justin Boyd/LON/ECT on 17/10/2000 16:26
---------------------------

Anne Edgley
17/10/2000 16:15
To: Justin Boyd/LON/ECT@ECT
cc: Tana Jones/HOU/ECT@ECT, Markus Fiala/LON/ECT@ECT

Subject: Re: ISDA Agreements - Hypovereins/Bank Austria

Thanks Justin. As a follow-uo, Credit.com are now asking whether they can
have a list of all counterparties with whom with executed ISDAs. I presume
that is a long list but hopefully easily available. Thanks again for your
help.

Justin Boyd
17/10/2000 15:16
To: Anne Edgley/LON/ECT@ECT
cc:

Subject: Re: ISDA Agreements - Hypovereins/Bank Austria

Anne

FYI

J
---------------------- Forwarded by Justin Boyd/LON/ECT on 17/10/2000 15:18
---------------------------
From: Tana Jones on 17/10/2000 09:11 CDT
To: Justin Boyd/LON/ECT@ECT
cc:

Subject: Re: ISDA Agreements - Hypovereins/Bank Austria

No, no ISDA's or other master agreements in place with this counterparty.

	Justin Boyd
	10/17/2000 05:04 AM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: ISDA Agreements - Hypovereins/Bank Austria

Hi Tana!

Could you assist on this?

Many thanks

Justinian

---------------------- Forwarded by Justin Boyd/LON/ECT on 17/10/2000 11:06
---------------------------

Anne Edgley
17/10/2000 11:00
To: Justin Boyd/LON/ECT@ECT
cc:

Subject: ISDA Agreements - Hypovereins/Bank Austria

I have been asked by Credit.com whether there are ISDA agreements in place
with the above mentioned banks (who are about to merge). I suspect the answer
is No but please can we find out.
Thanks.


Everyone,

Carla Hoffman informed me on Friday that she has accepted another position
outside the company.    I would like to thank her for all she has done for
Enron West Power over the years and wish her the best on her new endeavors.

Thanks,
Jeff Richter
Short Term California Desk


Folks,

Starting Monday, 4/22/02, manual wire requests will have to go through the Cash Management Committee (CMC) the day before payment.  This means that the request forms and accompanying support documentation will have to be signed by the appropriate signatories of the business unit (BU), the BU CAO and the BU Head and delivered to myself (3-6337) at EBN 714a or Drew Kanellopoulos (3-9424) the day before the CMC meeting.  For example, if you need a wire sent on Wednesday, 4/24/02, you would need to deliver the request to us by the end of the day on Monday, 4/22/02 so the request could be reviewed at the 4/23/02 CMC meeting.  Check requests should be delivered three days in advance.

The only exceptions to this process will be items such as same day payment for prepay commodities.

We appreciate you helping us relieve the incredible stress on the system to get payments more efficiently and please pass this on to anyone I have missed.

Regards,
Doug


is that a good place to go for drinks afterwards or should i go somewhere
else?


I'm sending this again.  It came back late today saying the delivery time had
lapsed.  Sorry you did not get it yesterday.

Alison Bailey
713-853-6778
---------------------- Forwarded by Mary Alison Bailey/HOU/ECT on 10/31/2000
04:24 PM ---------------------------

	Enron North America Corp.

	From:  Mary Alison Bailey                           10/30/2000 03:20 PM

To: Steven J Kean/NA/Enron@Enron, Mark Courtney/HOU/ECT@ECT, Traci
Warner/Enron Communications@Enron Communications, Scott Porter/HOU/EES@EES,
Bernie Barcio/Enron Communications@Enron Communications, Andrew
Wilson/Corp/Enron@ENRON, Bill Windle/Corp/Enron@Enron, Brian Spector/Enron
Communications@Enron Communications, Kate Fraser/HOU/ECT@ECT, Pushkar
Shahi/HOU/ECT@ECT, Waymon Votaw/NA/Enron@Enron, Patrick Wade/HOU/ECT@ECT,
David Dye/HOU/EES@EES, Jon Adler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg
Characklis/HOU/AZURIX@AZURIX, William Kendrick/OTS/Enron@ENRON, Larry
Leib/Corp/Enron@Enron, Andrew Miles/NA/Enron@Enron, Stephen Stenhouse/Enron
Communications@Enron Communications, Trevor Randolph/Corp/Enron@ENRON,
Charles Varnell/NA/Enron@Enron, Doug Sewell/HOU/ECT@ECT, Alhamd
Alkhayat/NA/Enron@ENRON, Micha Makowsky/Enron Communications@Enron
Communications, Frank Bay/Enron Communications@Enron Communications, Jaime
Gualy/Enron Communications@Enron Communications, John Wilson/NA/Enron@ENRON,
John Walt/Corp/Enron@ENRON, Kelli Little/NA/Enron@Enron, Patrick
Wade/HOU/ECT@ECT, Michelle Juden/HOU/EES@EES, Aamir Maniar/NA/Enron@Enron,
Doug Sewell/HOU/ECT@ECT, Brian O'Rourke/Enron Communications@Enron
Communications, David Maskell/Enron Communications@Enron Communications,
Michelle D Cisneros/HOU/ECT@ECT, John Kiani/HOU/EES@EES,
Marilyn_baker@enron.net
cc:
Subject: RESULTS OF SUPER SATURDAY - RICE MBA

Please call or e-mail candidates who have received "offers".All of your hard
work paid off - you have a great list of "offers".  These students have all
been called and will receive a letter/packet by the end of the week.


Andre,

I gave John the Round 5 information and told him the time restraints.  Please
let me know if you need anything further.

Kim


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	Purchasing Information:

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FYI.  If you'd like to discuss, don't hesitate...
----- Forwarded by Jeff Dasovich/NA/Enron on 09/28/2000 12:46 PM -----

	Marianne Castano@EES
	09/28/2000 12:39 PM

		 To: Dennis Benevides/HOU/EES@EES
		 cc: Jeff Dasovich/NA/Enron@Enron, Karen A Cordova/HOU/EES@EES, Diann
Huddleson/HOU/EES@EES
		 Subject: Re: SDG&E Credits

Dennis:  Just wanted to bring this item to your attention.  We've researched
the terms of our residential agreements and have noted that they are silent
as to the issue of credits/refunds.  I've asked Jeff and Mike Day, our
regulatory counsel in CA, for their input on whether we should refund these
credits back to our residential customers.

 Notwithstanding  the fact that the language of the original decision
allowing the credits does not address direct access customers, Jeff and Mike
recommend, given the current climate in California, that we take action to
refund these credits to our residential customers.

 Just want to make sure you're "on board" with this before we direct CSC to
refund the credit back to our residential accounts...Marianne

.

	Enron Energy Services

	From:  Karen A Cordova                           09/21/2000 05:00 PM
	Phone No: 713.853.3150
  713.646.8860 - FAX No.

To: Marianne Castano/HOU/EES@EES
cc:
Subject: SDG&E Credits

Diane Huddelston called Lori Pinder about an issue;  Here it is:

Due to the merger btw SDG&G & Sempra Energy (about a year or less ago), a
savings was realized.  The CPUC said these savings must be passed on to
customers 1 time per year, in September.  They are called Annual Merger
Credits.

Pursuant to all commercial contracts, Enron is entitled to keep the savings
(per Diane).  What about the residential customer accounts?

Enron keeps the savings or should the residential customer receive?

Who could handle this issue for Diane?

Thanks, KC


Beth,

We will agree to this version with the following changes:

"Enron recognizes that, when NEGM is acting as Buyer hereunder, NEGM is
purchasing gas on behalf of certain gas companies (the "Repurchasers") to
whom it immediately resells such gas at the Delivery Point(s).  In addition
to any other circumstances for which NEGM is entitled to claim force majeure
pursuant to this Contarct, Enron agrees that NEGM as Buyer shall be entitled
to claim force majeure if a Repurchaser purchasing gas from NEGM is unable
to take delivery of gas as a result of an event of force majeure at such
Delivery Point)s).  The parties further agree that the term "Transporter"
when used in this Contract, including, but not limited to, in Sections 4.1.
and 11.1, shall include any company acting in the capacity of a transporter
for any Repurchaser and agree that Section 4.3 of the Contract will apply to
invoices from such Transporters for Imbalance Charges received from such
Transporters to the same extent as if such invoices were received
by NEGM, provided that any such Repurchaser scheduled and nominated the same
volumes as Enron and NEGM scheduled and nominated on behalf of such
Repurchaser at the Delivery Point(s)."

Please let me have your thoughts.

Regards,
Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


Thanks so much.  Let's talk - I'll be back in the office on Thursday.  Have
fun and good luck with the house hunt and sale!


Thanks a million.  Will keep you in the loop on what's going on between now
and Thursday.  And don't hesitate if you need anything, or if there's
anything that you want to add to the stew.

	Chris H Foster@ECT
	11/07/2000 01:07 PM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: Utility Business

Jeff:

Following is a summary of recent EPMI West Power activity with the 3
California utilites

PG&E - EEI Master Agreement in place.  As part of their recent RFP, we
completed 2, 50 MW,  5 year, sale transactions for peak hours at $58.40 and
$58.70.  They are looking at EOL although they have not transacted on it.
They call regularly for shorter dated quotes.  We deal with Claudia Grief who
works in Joe Henri's group.  Overall, we have a very positive relationship
and look forward to increasing business.

Edison - Almost finished negotiation of a EEI Master Agreement to allow
transactions.  We are haggling about some credit issues, but expect these to
be resolved shortly.  We participated in their only RFP.   They did not
transact with us or, to our knowledge, with others. They got cold feet.   We
work with Jill Horswell, Sean Baker and Bennie Wu.  Since master contracts
are not done yet, and no deals have been completed, I would say this
relationship is not as good as PG&E but better than SDG&E.  I would expect
that we will be doing regular cash business by the end of the year.  They are
looking at EOL.

SDG&E - We have participated in 3 RFPs and have not been successful.  We have
been trying to sell them longer dated energy (5 years).  We believe they have
bought from others but for small size and limited duration.  We work with
Sharon Firooz.  We have sent them master EEI agreements and are not making as
much progress in getting them to agree.  They prefer using the  WSPP contract
rather than EEI.  We hate WSPP.  We will keep pounding on them until they see
the light but it will likely take longer.  Plus they are far more skittish
re: longer dated transactions thatn the other utilites.  This said, I would
be surprised if we were not transacting with them on shorter term deals by Q1
2001.  They are not using EOL.

Please let me know if this summary meets your needs 503/464-3822.

C


Would it help if I found the name of some finance contact at Delta Power?

Kay

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 04/09/2001 02:46:24 PM
To: "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>
cc:

Subject: RE: Salmon Energy

I'm thinking attorneys need a wholly-owned sub to do our overflow work.  I
had to draw a picture for this transaction - the finance people are taking
over

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Monday, April 09, 2001 3:43 PM
To: Shoemaker, Kent (GEAE)
Cc: Shoemaker, Kent (GEAE); Johnson, Lee L (PS, GE AEP)
Subject: RE: Salmon Energy

I'd better ask Delta on that one, since there is a financing involved.  I
believe PP to be a wholly owned sub/project co, but I'll confirm.

Kay

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 04/09/2001 02:10:12
PM

To:   "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>, "Shoemaker, Kent (GEAE)"
      <kent.shoemaker@ae.ge.com>
cc:   "Johnson, Lee L (PS, GE AEP)" <lee.johnson@ps.ge.com>

Subject:  RE: Salmon Energy

What is the relationship between Delta Power and Pegasus/Salmon.  I feel
like I'm playing that game called "Telephone"

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Monday, April 09, 2001 1:56 PM
To: Shoemaker, Kent (GEAE)
Cc: Johnson, Lee L (PS, GE AEP)
Subject: Re: Salmon Energy

PP will own 80% of SE, Enron owning the remaining 20%.

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 04/09/2001 12:44:37
PM

To:   "'kay.mann@enron.com'" <kay.mann@enron.com>
cc:   "Johnson, Lee L (PS, GE AEP)" <lee.johnson@ps.ge.com>

Subject:  Salmon Energy

What is the relationship between Salmon Energy and Pegasus Partners?

g          GE Power Systems

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

___________________________
           Kent A. Shoemaker
           Counsel
           GE Industrial Aeroderivative Gas Turbines
           GE Aeroderivative and Package Services
           1 Neumann Way
           MD S150
           Cincinnati, Ohio 45215
           Phone:  (513) 552-5838  Dial*Comm:  8*892-5838
           Mobile:  (513) 604-4687
           Fax:      (513) 552-2882 Dial*Comm:  8*892-2882
           Internet:  Kent.Shoemaker@ae.ge.com

> ********************************NOTICE********************
> The information contained in this document and any documents attached
> hereto may be a confidential attorney-client communication or may
> otherwise be privileged or confidential.  It is the property of General
> Electric Company and shall not be used, disclosed to others, or
reproduced
> without the express written consent of General Electric Company.  If you
> are not the intended recipient, you are hereby notified that you have
> received this transmittal in error; any review, dissemination,
> distribution or copying of this transmittal is strictly prohibited.  If
> you have received this transmittal and/or attachments in error, please
> notify us immediately by reply or by telephone (call us at +1 513
> 552-5838) and immediately delete this message and all its attachments.
> Thank you.
>
>


I found a more updated version than the one I sent you yesterday.

Best regards

---------------------- Forwarded by Shona Wilson/NA/Enron on 10/17/2000 07:55
AM ---------------------------

Marcelo Parra@MGUSA
10/05/2000 04:04 PM
To: Tim Poullain-Patterson/LON/ECT@ECT
cc: Mike Jordan/LON/ECT@ECT, Shona Wilson/NA/Enron@Enron, Louis
Colarusso/NYC/MGUSA@MGUSA, Tom McKeever/EU/Enron@MGLTD

Subject: MG Future structure

Tim,
As discussed, please find attached an updated version of the Enron Metals
North America Structure.  It includes the Brokerage business and updates the
Merchanting operations.  Please review and provide your comments.  I would
like to finalize this and begin the formal implementation of these changes as
soon as possible.

Best regards,
Marcelo
Enron Metals & Commodity Corp.
E-Mail: Marcelo.Parra@enron.com


----- Forwarded by Tana Jones/HOU/ECT on 11/15/2000 05:19 PM -----

	Paul Finken@ENRON COMMUNICATIONS
	11/15/2000 05:00 PM

		 To: jnugent@purchasepooling.com
		 cc: kihansen@cisco.com, Tana Jones/HOU/ECT@ECT, Kara Knop/Enron
Communications@Enron Communications, Dovie Keprta/Enron Communications@Enron
Communications
		 Subject: NDA-Purchase Pooling, Inc.

John - The legal department informed me that the Enron NDA would be mutually
binding and if we worked from your Purchase Pooling NDA that it would take a
few days before they could review the document.  Is it possible to work from
the Enron NDA or do you or your attorneys have specific questions?

pf
----- Forwarded by Paul Finken/Enron Communications on 11/15/00 04:52 PM -----

	Tana Jones@ECT
	11/10/00 02:13 PM

		 To: jnugent@purchasepooling.com
		 cc: Dovie Keprta/Enron Communications@Enron Communications, Paul
Finken/Enron Communications@Enron Communications, Leslie Hansen/HOU/ECT@ECT
		 Subject: NDA-Purchase Pooling, Inc.

At the request of Paul Finken, I am attaching our proposed form of
Non-Disclosure Agreement.  If the enclosed meets with your approval, please
mail or fax an executed copy to me.  If you have any comments or questions,
please do not hesitate to call me at (713) 853-3399.  My fax number is (713)
636-3490.