We will take the NGPL variances.
PL

	From:  Cathy Sprowls                           02/16/2001 01:28 PM

To: Phillip M Love/HOU/ECT@ECT
cc:
Subject: Re: Financial Liquidation Issues

The Aurora liquidation tagg is N65007.2

The NGPL variance is primarily the following:

N50101.X                   2,221.50
              N70658.3              131,316.55

NQ1900.1               (15,596.02)

Sorry, my notes were getting a little hard to follow on some of those cells.

Thanks
Cathy
---------------------- Forwarded by Cathy Sprowls/HOU/ECT on 02/16/2001 01:23
PM ---------------------------

Phillip M Love
02/16/2001 10:27 AM
To: Cathy Sprowls/HOU/ECT@ECT
cc:
Subject: Re: Financial Liquidation Issues

0008 Lone liquidations can you please get the tagg number for the aurora
liquidation tsf from the East
Is the NGPL purchase variance for roughly $109K part of the the N50101 - syn
storage?

 WPS liquidation NV8650.1 is a option premium that is being paid on sitara
#384296 12/00-2/01.  This liquidation needs to be seperated out to its own
line and split accordingly along the months 12/00 & 01/01 - $116,250 and 2/01
$105,000.  We should get oa forms on this deal for these months that this
liquidation will offset.
Take remaining $7K
Thanks.
PL


---------------------- Forwarded by Mitch Robinson/Corp/Enron on 10/24/2000
05:23 PM ---------------------------

Pete McCormick@ENRON_DEVELOPMENT
10/24/2000 04:36 PM
To: Mitch Robinson@Enron, Richard Broussard@Enron
cc: Ross Newlin@EES, Tom Callaghan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Modified Gleason Monthly report

Attached, please find the modified report for September. The wording about
the deficiencies to Unit #1 causing a potential for loss of availability has
been changed to be more specific to the current conditions and expected
repair of such.

Peter


SBX 28 (Sher), related to expedited siting, passed out of both houses
today and was sent to Governor Davis.  The bill was amended to remove
the unemployment provisions which the Chamber and Manufacturers objected
to.  Some of the key provisions of the bill are as follows:

Expedites various CEC procedures for siting power plants;

Limits to 45 days and 100 days, until January 1, 2004, a local
jurisdiction's time for initial review and final review, respectively,
of an application submitted to the CEC;

Requires CEC to certify repowering projects within 180 days;

Extends from August 1, 2001 to December 31, 2002, the date by which
temporary "peaker" power plants must be in
service so as to qualify for the four-month siting process.

Requires ARB to develop expedited programs for retrofitting and
identifying and banking of emission credits;

Requires air districts to adopt an expedited program for permitting of
standby or distributed generation facilities and natural gas
transmission facilities;

Authorizes payment to air districts of mitigation fees for a new power
plant in lieu of obtaining actual emissions offsets, when the owner or
operator of the plant has shown that offsets are not available;

Waives conditionally, for a period of 10 years, standby charges imposed
by electrical corporations on customers who have installed non-gas-fired
distributed generation equipment five megawatts or smaller that commence
operation by September 1, 2002.  Provides that the waiver for gas-fired
units shall only apply until June 1, 2006.

Permits a gas corporation, until June 1, 2002, to exercise the power of
eminent domain to condemn any property for the purpose of competing with
another entity  in the offering of natural gas and services related to
natural gas.  Additionally, until June 1, 2002, prohibits CPUC from
making a finding on a petition or complaint  filed pursuant to Section
625 of the Public Utilities Code, and requires CPUC to dismiss the
petition or complaint.

http://info.sen.ca.gov/pub/bill/sen/sb_0001-0050/sbx1_28_bill_20010423_amended
_asm.pdf


Can you let me know what this software and hardware do?

 -----Original Message-----
From: 	Davis, Angela
Sent:	Thursday, January 10, 2002 10:11 AM
To:	Detmering, Tim
Subject:	RE: Enron-SE Corp.  Hardware and software

It is proposed that these will be transferred to the Netco.  The hardware and software were purchased by ENA or EPMI (I have been trying to obtain the answer to this question from accounting).  It is proposed that the $1.5 million outstanding payable to the vendor ESCA would remain with the estate.  Please let me know if you have a problem with this.

Angela D. Davis
Enron North America Corp.
1400 Smith Street, EB3817
Houston, Texas 77019
Tel: (713) 345-8347
Fax: (713) 646-3393
e-mail: angela.davis@enron.com


Richard,

When you get a minute I would like to catch you up  on these issues.  I think
it is appropriate to get outside counsel to look at the two Westinghouse
issues we have.

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 10/16/2000 08:40
AM ---------------------------

Scott Laidlaw@ENRON_DEVELOPMENT
10/13/2000 07:21 PM
To: Ben F Jacoby@ECT, Kay Mann@ENRON, John
Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David K
Bargainer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brian D
Barto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dan
Shultz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Matthew
Tezyk/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Normand/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike
Coleman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bruce
Golden/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mitch Robinson@Enron
cc:

Subject: siemens westinghouse damaged generator

everyone - greetings.

the attached letters are drafts for your review and comment.  we'll clean up
the transmittal with letterhead at time of sending.

our intent is to send these two letters to siemens westinghouse asap.

plz respond with comments asap.

regards.  scott.


Is 9 am OK?
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 02/14/2000
03:31 PM ---------------------------

Brant Reves
02/14/2000 02:39 PM
To: Sara Shackleton/HOU/ECT@ECT, Marie Heard/HOU/ECT@ECT
cc:
Subject: Re: Occidental

neuf est tres bonne.  "nine is very good".

Sara Shackleton
02/14/2000 02:29 PM
To: Marie Heard/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT
cc:
Subject: Occidental

How about 9 am tomorrow morning in my office?


Good Luck in your new job. I hope you find New England enjoyable. I lived in
Maine for three years and loved the area and all it had to offer.

-----Original Message-----
From: Mary.Hain@enron.com [mailto:Mary.Hain@enron.com]
Sent: Friday, March 23, 2001 10:36 AM
To: David_Aamodt@pgn.com; dapnucc@teleport.com; dick@pnucc.org;
seabron.adamson@frontier-economics.com; Frank_Afranji@pgn.com;
raa@vnf.com; Joseph.Alamo@enron.com; ajaldrich@snopud.com;
Jeff.Alexander@enron.com; Al.Alexanderson@enron.com;
Keonee.Almaida@enron.com; hollis.alpert@ferc.fed.us;
Brenda.Anderson@enron.com; angles@howry.com; Alan.B.Aronowitz@enron.com;
gdb@vnf.com; npbaker@bpa.gov; ellen@tca-us.com; paulb@citizenspower.com;
paulb@citizenspower.com; garybarbour@email.msn.com;
jbartus@cammckenna.com; glynda.becker@mail.house.gov;
Samuel.Behrends@enron.com; bbennett@bpa.gov; sberman@hewm.com;
ramsen.betfarhad@mail.house.gov; KBILAS@SKADDEN.COM; sbooye@SKADDEN.COM;
raymond.r.boyce@state.or.us; tbradley@bracepatt.com;
scott.brattebo@pacificorp.com; sbrose@steptoe.com;
sbuchheit@bracepatt.com; alanb@wutc.wa.gov; Jim.Byrne@enron.com;
vergil.cabasco@mail.house.gov; johncameron@dwt.com;
Doug.Carmichael@enron.com; Ed.Cassidy@enron.com; ajchambe@llgm.com;
Melissa.Chiechi@enron.com; elchristensen@snopud.com;
kevin.clark@ci.seattle.wa.us; rcloward@avistacorp.com;
david_cohen@rniinc.com; Bill.Comish@enron.com;
Victor.Contract@enron.com; powerlac@aol.com;
Frederick.Coolbroth@enron.com; michaelcorrigan@bchydro.bc.ca;
kcorum@nwppc.org; KCurry@bracepatt.com; wcurry@enron.com;
gdahlke@paine-hamblen.com; kadaly@mcimail.com; mday@gmssr.com;
dearing@chelanpud.org; tdeboer@paine-hamblen.com; Tom_Delaney@enron.com;
sdleonard@earthlink.net; dldorrell@stoel.com; Mary.Doyle@enron.com;
Jay.Dudley@enron.com; mce2280@idahopower.com;
michaelearly@earthlink.net; Katherine.Edwards@enron.com;
rle@givenspursley.com; imaxtrans@aol.com; Chris.Elliott@enron.com;
sandra.elliott@ferc.fed.us; kerwin@ect.enron.com; dezickson@mwe.com;
Jim.Fallon@enron.com; fallonr@howrey.com; Elias.Farrah@enron.com;
Michele_Farrell@pgn.com; dfaulk@puget.com; gfergus@brobeck.com;
Willard.Fields@enron.com; sfisher@avistaenergy.com; pfox@bracepatt.com;
Pat.Franklin@enron.com; John.Frazzell@enron.com; ericf@prestongates.com;
don.furman@pacificorp.com; segfurst@bpa.gov; Jackie.Gallagher@enron.com;
craiggannett@dwt.com; Alvaro.Garcia@enron.com; sbishop@gibbs-bruns.com;
wgibson@nwppc.org; ggilbert@ci.tacoma.wa.us; Pat.Gilman@enron.com;
Alex.Goldberg@enron.com; jlgreene@energyadvocates.com;
Chris_Groener@mail.house.gov; Mary.Groggin@enron.com;
Mark.E.Haedicke@enron.com; Stephen.Hall@enron.com;
steve.c.hall@enron.com; Leo.Hamblin@enron.com; whannaford@nwppc.org;
jim.harding@ci.seattle.wa.us; rhardy@hardyenergy.com; kharri@puget.com;
Steve_Hawke@pgn.com; dhawkins@caiso.com; marc.hellman@state.or.us;
Scott.Helyer@enron.com; mhenry@bracepatt.com; dwmp@teleport.com;
rhornby@tca-us.com; mhornst@aol.com; dhuard@jmbm.com;
Marlene.Huntsinger@pgn.com; cfi1@tca-us.com;
Richard.Ingersoll@enron.com; pljacklin@stoel.com; montrey@aol.com;
danj@cfmdc.com; kgjohnson@bpa.gov; ljohnson@pwrteam.com;
Karen.E.Jones@enron.com; mkanner@kannerandassoc.com;
karid@perkinscoie.com; pkaufma@ect.enron.com; Paul.Kaufman@enron.com;
Jeffrey.Keeler@enron.com; Devon Kehoe; James.Keller@enron.com;
Joe.Kelliher@mail.house.gov; kkennedy@bdbc.com; Rick.Kessler@enron.com;
rdking@bpa.gov; Harry.Kingerski@enron.com; Harry.Kingerski@enron.com;
rsk@schwabe.com; gwilliams8@austin.rr.com; John.Klauberg@enron.com;
Holli.Krebs@enron.com; ekrogh@wiredweb.com; blafferty@avistacorp.com;
wdlamb@bpa.gov; John.Lamb@enron.com; Therese.Lamb@enron.com;
srlarson@bpa.gov; Cindy_Tatham@co.washington.or.us;
zora.lazic@bchydro.com; kaleathley@bpa.gov; pamela_lesh@pgn.com;
Debi.LeVine@enron.com; lcg@europa.com; doug.little@powerex.com;
Robert.Loeffler@enron.com; Chris.Long@enron.com; sjlong@bpa.gov;
rlopezv@conet.com.mx; david_lucio@iep.illinova.com;
king.lum@bchydro.bc.ca; kevin.lynch@pacificorp.com;
Mark.Maehr@enron.com; Randal.T.Maffett@enron.com;
John.Malowney@enron.com; Sueyen.Mao@enron.com; Susan.J.Mara@enron.com;
Susan.J.Mara@enron.com; Lee.Martin@enron.com; maurw@perkinscoie.com;
Wayne.Mays@enron.com; Michael.McCall@enron.com;
Sandra.McCubbin@enron.com; Travis.McCullough@enron.com;
Michael.McDonald@enron.com; brugen@erols.com; mckinley@wpuda.org;
mcm@vnf.com; mcnichol@wapa.com; shauna@pnucc.org;
Maureen.McVicker@enron.com; pmeringolo@brobeck.com; demetcalf@bpa.gov;
cemeyer@bpa.gov; jmilegich@sppc.com; fred_miller@pgn.com;
Jeffrey.Miller@enron.com; jerry.miller@pacificorp.com;
Laura.Miller@enron.com; scott.miller@ferc.fed.us; Bill.Miner@enron.com;
phil_moeller@gorton.senate.gov; pmohler@hewm.com; emoler@velaw.com;
nkmorgado@bpa.gov; Mike@tonkon.com; krmoxness@bpa.gov;
mmps@millcreeklaw.com; pmurphy@mbllp.com; terrym@millcreeklaw.com;
bmurtha@acy.sunint.com; Rich.Nassief@enron.com; tod@mgninc.com;
Douglas_Nichols@pgn.com; Patty.Nichols@enron.com;
Christi.Nicolay@enron.com; tmnoguchi@bpa.gov; darcy@tonkon.com;
Sarah.Novasel@enron.com; Sarah.Novosel@enron.com;
Tom.O'Donnell@enron.com; PObenchain@idahopower.com; Pegy.Olds@enron.com;
Carol.Opatrny@enron.com; tpaine@avistacorp.com; Dave.Parquet@enron.com;
bpascoe@mtpower.com; afpaschke@bpa.gov; ccperigo@bpa.gov;
wlpernas@stoel.com; lpeters@pacifier.com; jill@pnucc.org;
Mona.L.Petrochko@enron.com; npickover@bracepatt.com;
Phillip.Platter@enron.com; Alfred.Pollard@enron.com;
Walt.Pollock@enron.com; gporter@sppc.com; Kevin.M.Presto@enron.com;
jquint@puget.com; arlene.ragozin@ci.seattle.wa.us; maraschio@bpa.gov;
Dale.Rasmussen@enron.com; Scott.Rasmussen@enron.com;
Bobby.Reeves@enron.com; preiten@pngc.com; reyna2r@kochind.com;
shellyr@pacifier.com; Jeff.Richter@enron.com; raroach@bpa.gov;
atrodrigues@bpa.gov; rarogers@bpa.gov; peterroi@erols.com;
Rothfelder@rlo-law.com; Richard.Sanders@enron.com; jsaven@pacifier.com;
Michael.Schilmoeller@enron.com; jschlect@avistacorp.com;
Sabine.Schnittger@frontier-economics.com; Diana.Scholtes@enron.com;
Roger.Seifert@enron.com; Cara.Semperger@enron.com;
asettanni@bracepatt.com; Richard.Shapiro@enron.com; vsharp@enron.com;
msmith1@enron.com; Joshua.Sheinkman@enron.com; jshurts@nwppc.org;
Sid@enron.com; msizer@ci.tacoma.wa.us; slavens.paula@deps.ppl.com;
small@wrightlaw.com; small@wrightlaw.com; douglas.smith@ferc.fed.us;
Mike.Smith@enron.com; Roger.Smith@enron.com; Larry.Soderquist@enron.com;
Harvey.Spigal@enron.com; mstauffer@mtpower.com;
James.D.Steffes@enron.com; James.D.Steffes@enron.com;
mestewardpsedc@worldnet.att.net; JKStier@bpa.gov;
rbstrong@paine-hamblen.com; DASwanstrom@Verner.com;
Mike.Swerzbin@enron.com; tabors@tca-us.com; Ron.Tapscott@enron.com;
James.K.Tarpey@enron.com; Jake.Thomas@enron.com;
ryan_thomas@burns.senate.gov; jrt2058@idahopower.com
Subject: I'm Leaving Enron

        maryann@pnucc.org, mtierney@sempra.com, robin_tompkins@pgn.com,
        Ann.Tumlinson@enron.com, AW.Turner@enron.com,
Sheila.Tweed@enron.com,
        Lisa.Urick@enron.com, rvermeers@avistacorp.com,
        Frank.W.Vickers@enron.com, John.Walley@enron.com,
        kristiwallis@sprintmail.com, walshl@howrey.com, swalton@enron.com,
        Steve.Walton@enron.com, kaward@bpa.gov, Kim.Ward@enron.com,
        Carol.Wardell@enron.com, dwatkiss@bracepatt.com, sawatson@bpa.gov,
        judy.welch@NWPP.ORG, 211-6155@mcimail.com, Kwenzel@zzz.com,
        cwestadt@sppc.com, Brian.Whalen@enron.com, Bill.Williams@enron.com,
        klwmtp@worldnet.att.net, lyn_williams@pgn.com, Greg.Wolfe@enron.com,
        Vickie.Wolk-Laniewski@enron.com, Ed.Wood@enron.com, mwood@stoel.com,
        Steve.Wright@enron.com, Teresa.L.Wright@enron.com, WSCC@enron.com,
        Charles.Yeung@enron.com, Christian.Yoder@enron.com,
        Steven.J.Kean@enron.com, Steve.Kean@enron.com,
        Travel.in.the.Park@enron.com, D.Brett.Hunsucker@enron.com,
        Carla.Hoffman@enron.com, Bernadette.Hawkins@enron.com,
        Joe.Hartsoe@enron.com, Donna.Fulton@enron.com,
Roger.Fragua@enron.com,
        James.B.Fallon@enron.com, Michael.Etringer@enron.com,
        Terry.W.Donovan@enron.com, Stacy.Dickson@enron.com,
        Ginger.Dernehl@enron.com, Rhonda.L.Denton@enron.com,
        Jeff.Dasovich@enron.com, Sean.Crandall@enron.com,
Tom.Briggs@enron.com,
        t.briggs@enron.com, Stacey.Bolton@enron.com, dbenevid@enron.com,
        dbenevid@enron.com, Tim.Belden@enron.com, Robert.Badeer@enron.com,
        Phillip.K.Allen@enron.com, Alan.Comnes@enron.com,
Lysa.Akin@enron.com,
        Portland.West.Desk@enron.com, assad@elektro.com.br,
        Alan.Comnes@enron.com, Alberto.Levy@enron.com,
Aleck.Dadson@enron.com,
        Allison.Navin@enron.com, Amy.Fabian@enron.com,
        Barbara.A.Hueter@enron.com, Bernadette.Hawkins@enron.com,
        Bill.Moore@enron.com, cristinah@elektro.com.br,
        Carlos.Gustavo.Azevedo@enron.com, Carmen.Perez@enron.com,
        Carolyn.Cooney@enron.com, Charles.Yeung@enron.com,
        Chauncey.Hood@enron.com, Chris.Long@enron.com,
        Christi.L.Nicolay@enron.com, Cynthia.Sandherr@enron.com,
        Damon.Harvey@enron.com, Dan.Staines@enron.com,
        Daniel.Allegretti@enron.com, Dave.Mangskau@enron.com,
        Donald.Lassere@enron.com, Donna.Fulton@enron.com,
        Eidy.Catala@enron.com, Elizabeth.Linnell@enron.com,
        Frank.Rishe@enron.com, Geriann.Warner@enron.com,
        Ginger.Dernehl@enron.com, Gisele.S.Braz@enron.com,
        Gloria.Ogenyi@enron.com, Guillermo.Canovas@enron.com,
        Harry.Kingerski@enron.com, Howard.Fromer@enron.com,
        James.D.Steffes@enron.com, Janine.Migden@enron.com,
        Javier.Pantoja@enron.com, Jean.R.Dressler@enron.com,
        Jean.Ryall@enron.com, Jeff.Brown@enron.com, Jeff.Dasovich@enron.com,
        Jeffrey.Keeler@enron.com, Joao.Paixao@enron.com,
Joe.Allen@enron.com,
        Joe.Connor@enron.com, Joe.Hartsoe@enron.com, Joe.Hillings@enron.com,
        Jose.Bestard@enron.com, Joseph.Alamo@enron.com,
        Kathleen.Sullivan@enron.com, Kerry.Stroup@enron.com,
        Kikumi.Kishigami@enron.com, Kirsten.Bellas@enron.com,
        Lara.Leibman@enron.com, Laurie.Knight@enron.com,
        Leslie.Lawner@enron.com, Linda.J.Noske@enron.com,
        Linda.Robertson@enron.com, Lindsay.Meade@enron.com,
        Lisa.Yoho@enron.com, Lora.Sullivan@enron.com, Luiz.Maurer@enron.com,
        Lysa.Akin@enron.com, Marchris.Robinson@enron.com,
        Marcia.A.Linton@enron.com, Marcie.Milner@enron.com,
        Mary.Hain@enron.com, Maureen.McVicker@enron.com,
        Melinda.Pharms@enron.com, Michelle.Belzak@enron.com,
        Mona.L.Petrochko@enron.com, Nancy.Hetrick@enron.com,
        Patrick.Keene@enron.com, Ray.Alvarez@enron.com,
        Rebecca.W.Cantrell@enron.com, Ricardo.Charvel@enron.com,
        Richard.Ingersoll@enron.com, Richard.Shapiro@enron.com,
        Robert.Frank@enron.com, Robert.Hemstock@enron.com,
        Robert.Neustaedter@enron.com, Robin.Kittel@enron.com,
        Ron.McNamara@enron.com, rboston@enron.com, Rubena.Buerger@enron.com,
        Sandra.McCubbin@enron.com, Sarah.Novosel@enron.com,
        Scott.Bolton@enron.com, Sergio.Assad@enron.com,
Stella.Chan@enron.com,
        Stephen.D.Burns@enron.com, Steve.Montovano@enron.com,
        Steve.Walton@enron.com, Steven.J.Kean@enron.com, Sue.Nord@enron.com,
        Susan.J.Mara@enron.com, Susan.M.Landwehr@enron.com,
        Terri.Miller@enron.com, Thane.Twiggs@enron.com,
Tom.Briggs@enron.com,
        Tom.Chapman@enron.com, Tom.Delaney@enron.com, Tom.Hoatson@enron.com,
        Tracy.Cooper@enron.com, Valeria.Lima@enron.com,
Vinio.Floris@enron.com,
        Xi.Xi@enron.com, Steven.J.Kean@enron.com, Jeffrey.Keeler@enron.com,
        Christi.L.Nicolay@enron.com, Sarah.Novosel@enron.com,
        Robert.Frank@enron.com, Lara.Leibman@enron.com,
        Gloria.Ogenyi@enron.com, Richard.Shapiro@enron.com,
        Leslie.Lawner@enron.com, Paul.Kaufman@enron.com,
        Aleck.Dadson@enron.com, Daniel.Allegretti@enron.com,
        Howard.Fromer@enron.com, Joe.Hartsoe@enron.com, rboston@enron.com,
        Janine.Migden@enron.com, Christie.Patrick@enron.com,
        Jane.Wilson@enron.com, Rhonda.L.Denton@enron.com,
        kmagruder@newpower.com, scovino@newpower.com,
Rebecca.Carter@enron.com,
        Shelley.Corman@enron.com, Janet.Butler@enron.com,
        Kevin.M.Presto@enron.com, Brad.Richter@enron.com,
Greg.Piper@enron.com,
        Kevin.McGowan@enron.com, Kim.Ward@enron.com, Leslie.Reeves@enron.com
Date: Fri, 23 Mar 2001 10:24:18 -0800
Message-ID: <OFCFA12BE4.1A65CFD4-ON88256A0F.00666A9C@enron.com>
X-MIMETrack: Serialize by Router on ENE-MTA01/Enron(Release 5.0.6 |December
14, 2000) at
 03/23/2001 12:29:04 PM
MIME-Version: 1.0
Content-type: text/plain; charset=us-ascii

I am going to be the Senior Regulatory Counsel at ISO New England starting
on April 9, 2001.   My last day in the Portland area will be March 31,
2001.  I enjoyed working with you and wish you the best of everything.  My
new address will be:

Mary Hain
Senior Regulatory Counsel
ISO New England Inc.
One Sullivan Road
Holyoke, MA  01040-2841
(413) 535-4000
mhain@ISO-NE.com


Enron North America Corp.

	From:  David W Delainey                           06/21/2000 02:51 PM

Sent by: Kay Chapman
To: Raymond Bowen/HOU/ECT@ECT, Dan Leff/HOU/EES@EES, Brian
Redmond/HOU/ECT@ECT, George McClellan/HOU/ECT@ECT, Mark E
Haedicke/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT,
Jeffrey A Shankman/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, Jeff
Donahue/HOU/ECT@ECT, Jere C Overdyke/HOU/ECT@ECT, Marty Sunde/HOU/EES@EES,
John J Lavorato/Corp/Enron@Enron, Joe Kishkill/SA/Enron@Enron, Wes
Colwell/HOU/ECT@ECT, James L Noles/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Mark Frevert/NA/Enron@Enron, David W Delainey/HOU/ECT@ECT, David
Oxley/HOU/ECT@ECT, Marsha Schiller/HOU/ECT@ECT, Lillian Carroll/HOU/ECT@ECT,
Angie Collins/HOU/ECT@ECT, Janette Elbertson/HOU/ECT@ECT, Christy
Chapman/HOU/ECT@ECT, Carolyn George/Corp/Enron@ENRON, Barbara
Lewis/HOU/ECT@ECT, Stella L Ely/HOU/ECT@ECT, Donna Baker/HOU/ECT@ECT, Carol
Moffett/HOU/EES@EES, Kimberly Hillis/HOU/ECT@ect, Lisa Wolfe/NA/Enron@Enron,
Shirley Tijerina/Corp/Enron@ENRON, Sherryl
Stone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nicki Daw/NA/Enron@Enron, Jennifer
Burns/HOU/ECT@ECT, Rhonna Palmer/HOU/ECT@ECT, Kay Chapman/HOU/ECT@ECT, Fran L
Mayes/HOU/ECT@ECT, Cindy Adams/HOU/ECT@ECT, Irma Alvarez/HOU/ECT@ECT, Kathy
Dodgen/HOU/EES@EES, Kay Chapman/HOU/ECT@ECT
Subject: ENA VP PRC Pre-Ranking Meeting

This is a reminder to please have your calendar marked for Friday July 7,
2000, for the ENA VP PRC Pre-Ranking Meeting. The meeting will be held at the
DoubleTree (Granger B) from 8:00 am to 5:00 pm.

If you have any questions/conflicts, please feel free to call me.  Irma
Alvarez will be following up with invitations that will have detailed
information within the next few days.

Thanks,

Kay  3-0643


We need to communicate with Massey before he gets completely carried away
blaming the interstate pipeline business for gas price spikes.  We need to
get him the information regarding Cal LDCs failure to fill storage and their
opposition to additional pipeline construction in the state.  Shelley --
could you forward copies of the LDC filings to the group.  Should Joe or I
(or both) try to see massey when I am in town next week?
---------------------- Forwarded by Steven J Kean/NA/Enron on 04/26/2001
02:07 PM ---------------------------
From: Jeff Dasovich on 04/24/2001 06:57 PM
Sent by: Jeff Dasovich
To: Richard Shapiro/NA/Enron@Enron, skean@enron.com, James D
Steffes/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Leslie
Lawner/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Rob
Bradley/Corp/Enron@ENRON, Janel Guerrero/Corp/Enron@Enron, Karen
Denne/Corp/Enron@ENRON, Alan Comnes/PDX/ECT@ECT, Sandra
McCubbin/NA/Enro@Enron, Susan J Mara/NA/Enron@ENRON
cc:

Subject: Some Background on California Gas Price Spikes--The Other Side of
the Story

Last week, I distributed a presentation that the Brattle Group gave before
the California Inquisition (i.e., legislative gas oversight committee looking
into the gas price spikes at the Cal border).

The Brattle Group is a consulting firm that Edison has long used to beat up
on SoCalGas (recall that Edison used to be a big gas customer when it owned
power plants).  Edison "arranged" for the Brattle Group to be the star
witness at the Cal Leg gas hearing.  Their job was to set up El Paso and
Dynegy for the hit at hearings that took place the following day.  Their
message was simple (and simplistic):

El Paso and Dynegy have market power.
They have used the market power to drive up basis and thus the price of gas
at the border (to "obscene" levels).
That, in turn, has driven up electricity prices.

Ken Lay is giving a gas talk tomorrow, and Rob Bradley asked that I provide
the alternative view to the Edison/Brattle rant, in the event that he gets
any questions on the topic.  It's attached.  Apologies, it's quick and dirty,
but it provides the basics.

Obviously no need for us to defend El Paso or Dynegy, but might be useful to
offer a more rationale explanation than the one that the California
Legislature is peddling.

Finally, we were also fingered somewhat as culprits at the hearing (the
California PUC FERC lawyer claimed that ENA and TW colluded to drive up basis
when ENA controlled a portion of  the capacity), but the overriding goal of
the hearing was to go after EP and Dynegy.

Best,
Jeff


I made the changes, and I have one question in parentheses on the financial
piece.


As we discussed, Linda's divorce is in Judge Squires' court. The opposing
counsel is Susan Myres, who I think has recently moved to Don Fullenwiller's
firm. She presents a problem for two reasons. First,she is much,much more
aggressive than Linda's current atty. At the prelimanary hearing, she
objected to half of the question, which the judge sustained(he has asked to
withdraw and I say good riddance)  The bigger problem in my mind is that her
aggression has "empowered" Linda's husband. It is pretty pathetic from what
Linda tells me. He says things like"wait till I tell my lawyer about this,
she'll go straight to the judge" Linda needs someone that knows what they are
doing, is aggressive enough to handle Ms.Myres, and has some clout with the
Judge. Linda can pay,but has limited resources. Thanks for your help.


Whether I can attend or not, I think an internal gathering tomorrow to review
outstanding World Hunger issues would be appropriate followed by the
regularly scheduled call on Wednesday.  If you all would push this along in
my absence, I will ask Suzanne Adams to send out the reminder memo to the
distribution list.  Be sure to include Bill Williams so that his input can be
applied to the Longview turbine purchase.  Thanks!

	John Schwartzenburg@ENRON_DEVELOPMENT
	05/07/2001 07:22 AM

		 To: John G Rigby@ENRON_DEVELOPMENT, Scott
Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Sheila Tweed@ECT
		 Subject: Columbia Call - Monday

John and Scott: Please attend this call. It will start bumping into the GE
world hunger and Arcos turbines.

JWVS
----- Forwarded by John Schwartzenburg/ENRON_DEVELOPMENT on 05/07/2001 07:21
AM -----

	Jessica Burry@ECT
	05/04/2001 03:09 PM

		 To: jffell@stoel.com, semack@stoel.com, moconnell@stoel.com,
pjschneider@stoel.com, wlclydesdale@stoel.com, alindell@uswest.net,
wrussell@airpermits.com, hmarkwick@powereng.com, dwight_sangrey@golder.com,
dpluymers@golder.com, rleonard@golder.com, james_thornton@golder.com,
Christopher F Calger/PDX/ECT@ECT, Andy Chen/PDX/ECT@ECT, Ed
Clark/PDX/ECT@ECT, Don Hammond/PDX/ECT@ECT, Mark Mullen/PDX/ECT@ECT, Jonalan
Page/PDX/ECT@ECT, Dale Rasmussen/HOU/ECT@ECT, Jeff Shields/PDX/ECT@ECT, Jake
Thomas/HOU/ECT@ECT, Laura Wente/HOU/ECT@ECT, Bill Williams/PDX/ECT@ECT, Lisa
Bills/Enron@EnronXGate, Kortney Brown/Enron@EnronXGate, Bob
Carter/HOU/ECT@ECT, Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Terry
W Donovan/HOU/ECT@ECT, Roseann Engeldorf/Enron@EnronXGate, Matthew F
Gockerman/Enron@EnronXGate, Ed B Hearn III/HOU/ECT@ECT, Herman
Manis/Enron@EnronXGate, David Marshall/HOU/ECT@ECT, Stephanie
Miller/Corp/Enron@ENRON, Chip Schneider/Enron@EnronXGate, John
Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cris
Sherman/Enron@EnronXGate, Jeffrey A Soo/Enron@EnronXGate, Catherine
Clark/Enron@EnronXGate, Sheila Tweed/HOU/ECT@ECT, Mary Schoen/NA/Enron@Enron,
Justin Folloder/Enron@EnronXGate, William Fleenor/Enron@EnronXGate
		 cc: Jody Blackburn/PDX/ECT@EC, Theresa Villeggiante/PDX/ECT@ECT, Alisha
Guerrero/Enron@EnronXGate, Elizabeth Squires/PDX/ECT@ECT
		 Subject: Columbia Call - Monday

Conference Call - Project Columbia
Date:   Monday, May 7th
Time:  10:30AM PST
Duration:  1.5 Hour
Dial-in: 877.475.9228
Part. code: 203517
Host code: 760110

Mt. Rainier is reserved for those located in Portland.

If you have any questions, please let me know.

Jessica Burry
503-464-3800


Have PG&E and SCE filed their latest ATCP filings?  If so, can we get it?  If
not, can we get it when they do, including workpapers?

Thanks

Roger


| notifications                                                            |
+--------------------------------------------------------------------------+

Peterson, Todd added to Texas Terminators's rosters, and Hollis, Mike dropped.
If you have a cell phone or pager, you can get this information even sooner! Go to your league's web site and click "Options, Notifications" on the main toolbar to have notifications sent to your pager or phone, via text messaging.

Win a VIP Vegas Vacation! OR Win $600 CASH!
http://www.sportsline.com/links/6/1/223/sffn1011v.cgi
+--------------------------------------------------------------------------+
|        Copyright 2001 Commissioner.COM Inc and SportsLine.com Inc.       |
|   Your site is always at http://football.fantasy.sportsline.com/getbad   |
+--------------------------------------------------------------------------+

FB10SP


The attached schedule cover both Sunday and Monday, March 17-18.  Associated text files have been posted to Sparky.

Michael R. Frazier
Manager, Load Forecasting
Enron Energy Services
Office: 713-345-3200
Pager: 877-926-0615
P-mail: 8779260615@skytel.com


It is with regret that I have to announce that Jeff Skilling is leaving Enron.  Today, the Board of Directors accepted his resignation as President and CEO of Enron.  Jeff is resigning for personal reasons and his decision is voluntary.  I regret his decision, but I accept and understand it.  I have worked closely with Jeff for more than 15 years, including 11 here at Enron, and have had few, if any, professional relationships that I value more.  I am pleased to say that he has agreed to enter into a consulting arrangement with the company to advise me and the Board of Directors.
Now it's time to look forward.
With Jeff leaving, the Board has asked me to resume the responsibilities of President and CEO in addition to my role as Chairman of the Board.  I have agreed.  I want to assure you that I have never felt better about the prospects for the company.  All of you know that our stock price has suffered substantially over the last few months.  One of my top priorities will be to restore a significant amount of the stock value we have lost as soon as possible.  Our performance has never been stronger; our business model has never been more robust; our growth has never been more certain; and most importantly, we have never had a better nor deeper pool of talent throughout the company.  We have the finest organization in American business today.  Together, we will make Enron the world's leading company.
On Thursday at 10:00 a.m. Houston time, we will hold an all employee meeting at the Hyatt.  We will broadcast the meeting to our employees around the world where technically available, and I look forward to seeing many of you there.


I would love to - I really like going to the movies but never seem to make it!  Only one stipulation though - we don't go see planet of the apes!  I heard it was REALLY bad - possibly the worst movie ever made.

 -----Original Message-----
From: 	Heintzelman, Pete
Sent:	Wednesday, August 08, 2001 11:13 AM
To:	Ward, Kim S (Houston)
Subject:	RE: Dinner tonight

No innuendos at all, i just did not realize my cumulative rudeness!  Would you like to go to a movie some time this week or weekend?

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Wednesday, August 08, 2001 11:00 AM
To:	Heintzelman, Pete
Subject:	RE: Dinner tonight

I'm quite sure - but I don't understand your email.  Are you insinuating that I was being dramatic?  Not what I intended at all!

 -----Original Message-----
From: 	Heintzelman, Pete
Sent:	Wednesday, August 08, 2001 9:50 AM
To:	Ward, Kim S (Houston)
Subject:	RE: Dinner tonight

That I did not realize.  Are you sure?  Well, then, perhaps I could coerce you into seeing Apocolpse Now Redux or some other theatrical event?

PJH

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Wednesday, August 08, 2001 9:22 AM
To:	Heintzelman, Pete
Subject:	RE: Dinner tonight

It was fun - you missed out.  How could anything be more important than dinner @ vanny's?  especially when she made a cake!  You realize that that was the third time I've asked you to do something and you have said no.........

 -----Original Message-----
From: 	Heintzelman, Pete
Sent:	Wednesday, August 08, 2001 9:03 AM
To:	Ward, Kim S (Houston)
Subject:	RE: Dinner tonight

Oh that's right.  Glad you had fun.  How was Vanny's dinner?

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Wednesday, August 08, 2001 9:01 AM
To:	Heintzelman, Pete
Subject:	RE: Dinner tonight

Was in Memphis for the weekend.  It was lots of fun - saw a lot of my friends, hung out with my neice.

 -----Original Message-----
From: 	Heintzelman, Pete
Sent:	Monday, August 06, 2001 4:29 PM
To:	Ward, Kim S (Houston)
Subject:	RE: Dinner tonight

I would be but I already have plans.  I would like to do something later in the week though.  Were you in town this weekend?  My bro, sis in law and nephew were in all weekend and we had fun.  A lot of golf and some swimming with the little man.

PJH

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Monday, August 06, 2001 3:16 PM
To:	Heintzelman, Pete
Subject:	FW: Dinner tonight

Any interest in a bar-b-q at Suzanne's tonight?
 -----Original Message-----
From: 	Vann, Suzanne
Sent:	Monday, August 06, 2001 9:06 AM
To:	Richter, Jeff; Perry, Todd; Cross, Edith EES; Slone, Jeanie; McDonald, Rob; Gerard, Camille; Herron, Chris
Cc:	Ward, Kim S (Houston)
Subject:	Dinner tonight

Kim and I are having people over for dinner tonight at my house.  We are going to throw something on the grill, drink some cold beer and enjoy the Houston humidity.  Let me know if you are able to make it.

Suzanne
x54436
713-426-3886 (home)

I live in the Heights on the corner of 9th and Columbia.  If you are coming from Montrose/Studemont take a left onto 9th.  If you are coming from Waugh/Heights Blvd, take a right onto 9th:  http://www.mapquest.com/cgi-bin/share?s6l9c8j553ddi8sy


Need exhibit B added.  Redlines are against most recent version sent by
Reagan.


PLANNED OUTAGE
N O T I F I C A T I O N
			INFORMATION SYSTEMS & SERVICES

To:

Who this affects:		Enron Energy Services Employees

		Documentum Users

Date of Outage:

Outage Information:

Purpose:

		7:30 PM, Friday, September 8, 2000  until 9:00 AM, Saturday, September 9, 2000

		EESHOU-DM1 server will be unavailable.

		Server is being brought down for database maintenance.

Work Around:		None

		Thank you for your cooperation!

If you have questions about the above notification, please call the
EES Tech Support Call Center at (713) 853-9797 or Toll Free at (888) 853-9797


Please let me know if you have any additions/revisions.

Thanks!

Holly Keiser
Enron Americas
Legal Department - EB 3887
713-345-7893 (ph)
713-646-3490 (fx)
Holly.Keiser@enron.com


Vince,

Thank you very much but I ended up finding interviewers for all the time
slots.  Paulo has volunteered to interview for 1 hour, thank you for
suggesting his name.

Kristin

Vince J Kaminski@ECT
01/17/2001 02:00 PM
To: Kristin Gandy/NA/Enron@ENRON
cc: Kevin Kindall/Corp/Enron@ENRON, Alex Huang/Corp/Enron@ENRON, Paulo
Issler/HOU/ECT@ECT, Bob Lee/NA/Enron@Enron, Vince J Kaminski/HOU/ECT@ECT

Subject: Re: Carnegie Interviews Super Friday

Kristin,

I shall be tied up with the Wharton group all day Friday.
I am forwarding the message to some members
of the Research Group. I hope some of them will be available.

Vince

P.S. To the Research Group. Can you, please, help Kristin?

	Enron North America Corp.

	From:  Kristin Gandy @ ENRON                           01/16/2001 02:03 PM

To: Alyse Herasimchuk/NA/Enron@Enron
cc: Vince J Kaminski/HOU/ECT@ECT, Ann Korioth/Enron Communications@Enron
Communications, Terry Yamada/Corp/Enron@Enron, Traci Warner/Enron
Communications@Enron Communications, Erik Simpson/HOU/ECT@ECT, Laura
Howenstine/Enron Communications@Enron Communications, Sarah
Wesner/Enron@EnronXGate
Subject: Re: Carnegie Interviews Super Friday

Okay group it is Tuesday and we have heard from no volunteers.  We only need
30 minutes of your time.  Is any one available on this Friday to interview?

Please Help!

Kristin

	From:  Alyse Herasimchuk                           01/12/2001 03:55 PM

To: Vince J Kaminski/HOU/ECT@ECT, Ann Korioth/Enron Communications@Enron
Communications, Terry Yamada/Corp/Enron@Enron, Traci Warner/Enron
Communications@Enron Communications, Erik Simpson/HOU/ECT@ECT, Laura
Howenstine/Enron Communications@Enron Communications, Sarah Wesner/Corp/Enron
cc: Kristin Gandy/NA/Enron@Enron

Subject: Carnegie Interviews Super Friday

We have one last group of candidates coming in for final round interviews on
Friday, January 19th. We need Interviewers for half a day (9:00 am to 11:15
am). Please let me know if you can be available for the entire morning or
what times you could be available:

9:00 am - 9:30
9:35 am - 10:05
10:10 am - 10:40
10:45 am - 11:15

I appreciate any help you can offer in submitting names for those who may be
able to interview if you can not. Thanks!

Alyse Herasimchuk
Recruiting Coordinator
Associate / Analyst Program
57339


Kim,

Per your request, attached are redlined and clean version of the executable
version of the (a) Schedule to the ISDA Master Agreement, and (b) Paragraph
13 to the ISDA Credit Support Annex.

Please advise if all is OK, so that we may fax signature pages for immediate
execution.

Thanks.

Cordially,
Susan S. Bailey
Enron North America Corp.
1400 Smith Street, Suite 3806A
Houston, Texas 77002
Phone: (713) 853-4737
Fax: (713) 646-3490
E:mail:  Susan.Bailey@enron.com


Hunter,

Are you watching Alberto?  Do you have Yahoo Messenger or Hear Me turned on?

Phillip


http://www.consultrci.com

*********************************************************************
SCIENTECH IssueAlert Sponsor:

Energy Exchanges Online - Scottsdale - December 4-6: the only place to
meet your future clients, suppliers and partners.  SCIENTECH has secured
a $300 discount for all IssueAlert subscribers to participate to this event.
 To join Altra, HoustonStreet, Petrocosm, APX, Enron, Conoco, Duke plus
a legion of other online energy experts visit www.eyeforenergy.com/xonline.
This is the only event to take you from yesterday to tomorrow TODAY!
*********************************************************************

===============================================================
SCIENTECH IssueAlert, November 21, 2000
Dynegy and NRG Energy to Purchase Sierra Pacific Assets
By: Will McNamara, Director, Electric Industry Analysis
===============================================================

Dynegy (NYSE: DYN) and NRG Energy (NYSE: NRG) announced a major expansion
of their co-owned generation portfolio in the West through asset purchase
agreements to acquire 1,330 MW of power generation facilities from Sierra
Pacific Resources (NYSE: SRP).  The facilities include the 740 MW gas-fired
Clark Generating Station and 590 MW of the 605 MW, coal-fired Reid Gardner
Generating Station. The facilities are currently owned by Sierra Pacific
Resources' subsidiary, Nevada Power Company, and serve the growing Las
Vegas market.

ANALYSIS: This $634 million purchase has resulted from regulatory mandates
surrounding the Sierra Pacific-Nevada Power merger, which was completed
in July 1999. Sierra Pacific is undergoing the sale and transfer of all
of its remaining gas, oil and natural-gas fired Nevada generating assets,
which it intends to complete in 2001.

The Reid Gardner and Clark Stations are among the seven asset bundles that
were included in an auction by Sierra Pacific earlier this year. Located
in southeastern Las Vegas, the Clark Generating Station consists of 10
gas- and oil-fired generating units, which as noted total 740 MW. The oldest
unit at the Clark Generating Station became operational in 1955, the newest
in 1994. Specific information about which units at the Clark Generating
Station are included in this purchase was not available. The Reid Gardner
Generating Station consists of four baseload coal-fired units and is located
52 miles northeast of Las Vegas. According to recent data from the Energy
Information Administration, the California Department of Water Resources
owns about 68 percent of the Reid Gardner Plant. It is not clear what impact
the Dynegy / NRG purchase will have on this organization's ownership in
the plant.

The purchase of the Sierra Pacific assets is subject to approval from the
Federal Trade Commission, FERC and the Nevada Public Utilities Commission,
and is expected to close during the second quarter of 2001. Additional
conditions of the deal include a power purchase agreement for Nevada Power
to buy energy and ancillary services from Dynegy and NRG "at a stable price"
until March 2003.

On their own, both companies are leaders in independent power production
and energy supply. Yet this acquisition is the latest in a string of
collaborative
efforts between Dynegy and NRG. Together, the companies have been actively
acquiring power plants in Illinois and the West Coast, along with purchases
that they have made independently. In fact, this purchase of assets from
Sierra Pacific marks the sixth asset alliance between Dynegy and NRG.
Together,
the two companies jointly own 2,768 MW of power generation facilities in
California and 350 MW in Illinois. In most of the partnerships, and in
the case of this latest purchase from Sierra Pacific, Dynegy markets the
energy produced at the plants and oversees fuel management services, while
NRG manages the operational side.

Last July, Dynegy and NRG entered into a similar agreement to expand the
Rocky Road Power Plant, a natural gas-fired, simple cycle peaking facility
in East Dundee, Illinois. The move into Illinois was an important strategy
for both companies. Of course, Dynegy completed its merger with Illinova
last summer, creating a $22 billion company that is well-positioned to
compete in electric generation, wholesale and retail marketing, and gas
and electric power trading. At the time, the CEO of NRG Energy made it
clear that the Rocky Road plant expansion was part of the two companies'
strategy in becoming a large contributor to the Chicago-area energy market.
Dynegy, in fact, intends to continue acquiring and expanding generation
facilities in Illinois so that it can compete with Exelon Corp.

Moreover, both companies are positioning themselves to be leaders in
generation
capacity and power supply, and the purchase of the 1,330 MW from Sierra
Pacific factors in to both of their strategies. Not only does the acquisition
help to expand both companies' asset base, but it also diversifies their
power supply offerings. For instance, NRG claims that the assets complement
its current gas-fired peaking and intermediate California assets, providing
the benefits of fuel and dispatch level diversification. NRG aims to build
a "top three position in its primary markets." The acquisition of assets
from Sierra Pacific puts NRG into a prime position in the fast-growing
Nevada and Western markets by adding a strong component of baseload generation
to its portfolio.

In fact, this is the second acquisition that NRG has made from Sierra Pacific.
Just last month, NRG announced its intent to purchase a 50-percent interest
in the Valmy Power Station, which Sierra Pacific is selling also as a result
of regulatory mandates. The Valmy Power Station, which is primarily
coal-fired,
produces electricity in the northern Nevada and surrounding markets. In
this $273 million deal, NRG acted as an independent buyer.

Dynegy has long claimed that it wants to gain a 10-percent share, or 70,000
MW, of the U.S. electric market over the next five year by acquiring plants,
building them or negotiating the right to sell power produced by others.
In order to reach this goal, I had projected last summer that Dynegy might
be looking to merge with another provider to build its scale, considering
the fierce competition it faces from other generation companies. The company
has now taken a different path to achieve essentially the same result.
The addition of Sierra Pacific's facilities, combined with other assets
that the company has acquired or developed this year, increases Dynegy's
generating capacity by more than 4,000 gross megawatts. Dynegy contends
that this figure is comparable to many industry mergers without the regulated
transmission and distribution businesses. Dynegy also believes the acquisition
will support a raise in its earnings forecast for 2001, from $1.75 to $1.80
per share.

Dynegy's goals are pretty ambitious. However, the company has been increasing
earnings over the last year, so the $1.80 per share target may be attainable.
For 3Q 2000, Dynegy reported recurring net income of $176.5 million, or
55 cents a share, compared with Dynegy / Illinova pro forma recurring net
income of $96.5 million, or 32 cents per share, for the same period last
year. Much of this growth is coming from Dynegy Marketing and Trade, whose
reported net income increased to $141.9 million*80 percent of the company's
consolidated net income. There is little doubt that Dynegy and NRG,
considering
that they own 2,768 MW of power in the state, benefited from the short
supplies in California this summer, which*along with other factors*drove
up the cost for power in the state.

Another interesting element to this announcement is the fact that similar
strategic acquisitions are being made possible by mandated divestiture
that other companies have faced due to merger activity. Just yesterday,
I wrote about Duke and Williams embarking on a joint venture to purchase
the Gulfstream pipeline project from Coastal Corp. This sale was made possible
because Coastal is being forced to divest the pipeline as a result of its
merger with El Paso Energy. As the old adage goes, one company's loss is
another company's gain, which could be viewed as one of the drawbacks of
M&A activity. Another possible trend is the joint activity we are seeing
between companies. The Duke / Williams  and Dynegy / NRG projects are both
examples of companies that have collaborated on development and acquisition
ventures to support both their joint and individual strategies. As the
energy industry becomes more competitive, like-minded companies may find
that they can actually gain more by developing similar strategic alliances,
rather than following a insular path typically exemplified by, for example,
Southern Company.
===============================================================
Read SCIENTECH's free SourceBook Weekly article: "AES: SourceBook's Company
of the Year," at:
http://www.consultrci.com/web/rciweb.nsf/Web+Pages/SBEntrance.html
==============================================================

SCIENTECH is pleased to provide you with your free, daily IssueAlert. Let
us know if we can help you with in-depth analyses or any other SCIENTECH
information products. If you would like to refer a colleague to receive
our free, daily IssueAlerts, please reply to this email and include their
full name and email address or register directly at:

http://www.consultrci.com/web/infostore.nsf/Products/IssueAlert

Sincerely,

Will McNamara
Director, Electric Industry Analysis
wmcnamara@scientech.com
===============================================================
Feedback regarding SCIENTECH's IssueAlert should be sent to
wmcnamara@scientech.com
===============================================================

SCIENTECH's IssueAlerts are compiled based on independent analysis by
SCIENTECH
consultants.  The opinions expressed in SCIENTECH's IssueAlerts are not
intended to predict financial performance of companies discussed or to
be the basis for investment decisions of any kind.  SCIENTECH's sole purpose
in publishing its IssueAlerts is to offer an independent perspective regarding
the key events occurring in the energy industry, based on its long-standing
reputation as an expert on energy and telecommunications issues.

Copyright 2000.  SCIENTECH, Inc.

If you do not wish to receive any further IssueAlerts from SCIENTECH, please
reply to this message and type "remove" in the subject line.


Dear Colleagues,

We know you have many questions about your new benefits plan, payroll issues and other changes that will occur over the next few weeks. Human Resources and Communications are preparing a thorough Q&A, which we will send to you tomorrow and will regularly update as more information is available.

Meanwhile, please read the announcement below from Security about how you can obtain a new UBS Warburg access card that will allow you to enter our new office space after Friday.

I am confident that you share my enthusiasm about our new opportunity.  We look forward to working along side each of you in the coming days.

David Oxley
Head, Human Resources
____________________________________________________________________

Access Cards

There will be a two-day transition for the new UBS Warburg access cards. Beginning Monday, February 11, access to the 5th and 6th floors of Enron Center South will require these new cards. UBS Warburg access cards can be picked up from 7 a.m. to 7 p.m. at the reception area on the 5th floor of Enron Center South on Thursday, February 7th ; Friday, February 8th ; and Monday, February 11. Enron Security will produce new access cards with existing photographs, then simultaneously issue the new and collect the old cards. Employees without UBS Warburg cards will be allowed into the Enron Center South building on Monday but will have to collect their new cards as soon as possible to gain access to the 5th and 6th floors.

Employees who fail to collect their new cards by 7 p.m. Monday will be required to contact Enron Security's general information number at 713-853-5360 to arrange to pick them up.

There will be security staff available at the pick up point on ECS 5 to help with any problems you might have.

It is suggested employees wear their access cards at all times while on the premise.

Accessible Areas - The new cards will allow UBS-W employees to enter:
5th & 6th floors and Plaza area of Enron Center South ,
The Sky Ring
Body Shop, Enron Center North Plaza and therefore access the Credit Union and Cafeteria from either building.

Restricted Areas - Employees must submit to Enron Security a Restricted Access Request form (available by calling 713 8535360 ) and signed by Bob McAuliffe (713-853-7468) to enter:
Enron Center South, 8th and 9th floors
Enron Center North, 22nd and 34th floor
Ardmore Data Center.

Employees staying with the Enron estate while visa and other issues are completed - Employees in this group who are on assignment arrangements to UBS-W will be issued a regular access card - available in the same way as other new UBS-W employees.

Estate employees who are working with UBS-W on transition issues  - If they will be based in UBS-W office space they should talk to their UBS-W counterpart for approval and then UBSW HR for the issue of a UBS-W contractor card (in addition to their regular Enron badge).


You have received this email because the requester specified you as their Manager. Please click http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000028567&Page=Approval to review and act upon this request.

Request ID          : 000000000028567
Request Create Date : 4/10/01 2:53:40 PM
Requested For       : bilal.bajwa@enron.com
Resource Name       : VPN/IPASS
Resource Type       : Applications


Here is some "light" reading for you.  Print this one out, get a coke, and a pack of cigs.   Enjoy!  The author got this one right,  this has been my life and many many others for a long time --- this is what enrons culture has been like for years.

 -----Original Message-----
From: 	Lohman, TK
Sent:	Tuesday, November 06, 2001 10:05 AM
To:	Brawner, Sandra F.
Subject:	FW:  Texas Monthly November 2001: How Enron Blew It

 -----Original Message-----
From: 	Buehler, Craig
Sent:	Wednesday, October 24, 2001 1:01 PM
To:	Lohman, TK; Ward, Linda; Minter, Tracy; McEvoy, Christine
Subject:	 Texas Monthly November 2001: How Enron Blew It

How Enron Blew It
Less than a year ago, the Houston-based energy behemoth had everything: money, power, glitz, smarts, new ideas, and a CEO who wanted to make it the most important company in the world. Now its stock is down, wall street is bearish, and the CEO is gone. What went wrong?
by Mimi Swartz </mag/issues/authors/mimiswartz.php>
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like the international headquarters of the best and the brightest. The lobby in no way resembles the hushed, understated entryways of the old-fashioned oil companies, like Shell and Texaco nearby. Enron, in contrast, throbs with modernity. The people hustling in and out of the elevators are black, white, brown; Asian, Middle Eastern, European, African, as well as American-born. They are young, mostly under 35, and dressed in the aggressively casual uniform of the tech industry-the guys wear khakis, polo shirts, and Banana Republic button-downs. Almost preposterously fit, they move through the building intently, like winners. Enron is nothing if not energetic: A Big Brother-size TV screen frantically reports on the stock market near a bank of elevators, while another hefty black television relaying the same news greets people entering from the garage. A sculpture of the corporate symbol, an E tipped at a jaunty angle, radiates colors as it spins frenetically on its axis; a Starbucks concession on the ground floor keeps everyone properly caffeinated. Multicolored, inspirational flags hang from the ceiling, congratulating Enron on its diversity and its values; one more giant banner between elevator banks declares Enron's simple if grandiose goal: "From the World's Leading Energy Company to . . . The World's Leading Company!"
For a while, that future seemed guaranteed, as Enron transformed itself from a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000. It was a Wall Street darling, with a stock price that increased 1,700 percent in that sixteen-year period, with revenues that increased from $40 billion to $100 billion. "The very mention of the company in energy circles throughout the world creates reactions ranging from paralyzing fear to envy," notes a 2001 report from Global Change Associates, a firm that provides market intelligence to the energy business.
This Enron was largely the creation of Jeff Skilling, a visionary determined to transform American business. Hired sixteen years ago as a consultant by then-CEO Ken Lay, Skilling helped build a company that disdained the old formula of finding energy in the ground, hauling it in pipelines, and then selling it to refineries and other customers. Instead, it evolved into a company that could trade and market energy in all its forms, from natural gas to electricity, from wind to water. If you had a risky drilling venture, Enron would fund it for a piece of the action. If you wanted your megacorporation's energy needs analyzed and streamlined, Enron could do the job. If you were a Third World country with a pitiful infrastructure and burgeoning power needs, Enron was there to build and build. Basically, if an idea was new and potentially-and fantastically-lucrative, Enron wanted the first crack. And with each success, Enron became ever more certain of its destiny. The company would be the bridge between the old economy and the high-tech world, and in February of this year, Skilling reaped his reward when he succeeded Lay as chief executive officer. Enron, says Skilling, "was a great marriage of the risk-taking mentality of the oil patch with the risk-taking mentality of the financial markets."
The Enron story reflects the culture that drove American business at the end of the twentieth century. Like the high-tech companies it emulated, Enron was going to reinvent the American business model and, in turn, the American economy. Maybe it was natural that this Brave New World also produced a culture that was based on absolutes: not just the old versus the new, but the best versus the mediocre, the risk takers versus the complacent-those who could see the future versus those who could not. The key was investing in the right kind of intellectual capital. With the best and the brightest, a company couldn't possibly go wrong.
Or could it? Today Enron's stock trades at around $35, down from a high of $80 in January. The press cast Enron as the archvillain of California's energy crisis last spring, and Skilling caught a blueberry pie in the face for his relentless defense of the free market. A long-troubled power plant project in India threatened the company's global ambitions. Telecommunications, in which Enron was heavily invested, imploded. Wall Street analysts who once touted the company questioned its accounting practices. Some of the change in Enron's fortunes can be attributed to the economic downturn in uncertain times that has afflicted all of American business. But the culture that the company created and lived by cannot escape blame.
ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about business-we got it." At Enron, in fact, you either "got it" or you were gone-it was as simple as black and white. It is not coincidental, then, that the color scheme of Skilling's River Oaks mansion mirrors the corporation he once headed. Here, the living room's white walls shimmer against the mahogany floors. Black leather trims the edge of snowy carpets. Billowy sofas set off the jet-black baby grand. In the entry, white orchids cascade from a black vase on a black pedestal table that in turn pools onto cold, white marble. There is only one off-color note: After almost twenty years, Jeff Skilling is no longer associated with Enron, having resigned abruptly after just six months as CEO. Once, Skilling was hailed as the next Jack Welch (General Electric's masterful CEO), as one of Worth magazine's best CEO's in America (anointed in 2001), and even as a daredevil who hosted the kind of unchained adventure junkets in which, a friend told BusinessWeek, "someone could actually get killed." Today, he sounds more like Ebenezer Scrooge on Christmas morning. "I had no idea what I'd let go of," Skilling says of all the personal sacrifices he made while retooling Enron.
From a black chair in the white library, across from a huge black and white photograph of his daughter and two sons, Skilling clarifies. The demands of working 24-7 for Enron caused him to ignore his personal finances. Divorced, he lived in a 2,200-square-foot house without a microwave or a dishwasher. He almost missed his brother's wedding. "Learning a foreign language-I never learned a foreign language!" he exclaims. He never once took his youngest son to school. "I'm interested in the kids. You don't do kids in fifteen-minute scheduling." Travel: "You can't go to Africa for a week and get anything out of it!" Skilling includes the study of architecture and design on his list of missed opportunities, then he stops and sighs. "I'm not sure that fulfillment in life is compatible with a CEO's job," he says, finally. Then his eyes lock on mine, and his voice, which had softened, regains its pragmatic edge. "It would have been easy to stay," he says. "But that would not have been good for me."
He's a smallish, ruddy-faced man who keeps himself at fighting weight, handsome in the way of corporate titans, with piercing cheekbones and that assiduously stolid gaze. But the impatience Skilling once reserved for cautious underlings and dull-witted utility company executives is now targeted at reporters who have labeled his resignation "bizarre" and associates who are bitterly skeptical of his need for family time. His shrug stretches the limits of his shimmering blue button-down, and his matching blue eyes look put upon. "I'm surprised," he says, "that people have so much trouble understanding this."
PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early nineties couldn't help but notice a funny and, for its time, novel scene unfolding throughout the workday at the base of the Enron Building. From nine to five and before and after, you could see people slipping out of the pristine silver skyscraper to smoke. They perched on the chrome banisters or lurked near the glass doors at the entry, puffing like mad. They always looked hurried and furtive, even ashamed. Whatever people knew about Enron in those days (and most people didn't know much), it was often associated with that scene: Enron boasted one of the first nonsmoking corporate headquarters in Houston, and there couldn't have been clearer evidence of its break with the energy world of the past. What macho engineer would have put up with such humiliation?
But this company was a child of another time, that period in the mid-eighties when chaos enveloped the gas business. Federal deregulation of natural gas turned a steady, secure industry, in which gas pipeline companies frequently enjoyed a monopoly in portions of the areas that they served, into a volatile free-for-all. The situation was compounded five years later by federal deregulation of the pipeline business. So it happened that a gentlemanly gas pipeline company, Houston Natural Gas (HNG) found itself under attack from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG was then run by Lay, a sturdy, taciturn former economics professor and Transco chief operating officer who had a passion for military strategy. (His doctoral thesis at the University of Houston was on supply and demand in the Vietnam War.) Lay, who was from Missouri and never succumbed-at least outwardly-to Texas brashness, had done well enough: Thanks to canny expansions, HNG's pipelines stretched from Florida to California and throughout the state of Texas.
HNG fended off Coastal, but to protect the company from other takeover attempts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska pipeline concern called InterNorth, one of the largest pipeline companies in the country at the time. Then, a funny thing happened: HNG started acting in a way that would characterize the company for years to come-a lot like Coastal. What the Nebraskans blithely labeled "the purchase" was being called "the merger" back in Houston, and before long, following some particularly brutal politicking between Omaha and Houston, the company's center of gravity started shifting toward Texas, and shortly after that, Ken Lay was running a new company called Enron. "Over time it became clear that Lay had a better vision of the future," says one person associated with Enron at that time. "He never fought change. He embraced change."
Lay had won, but what exactly did that mean? Enron was saddled with massive debt from the takeover attempt, and thanks to deregulation, no longer had exclusive use of its pipelines. Without new ideas-for that matter, a whole new business plan-the company could be finished before it really even got started.
LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling had spent a lot of time in the Midwest, and he was self-made-at fourteen he had been the chief production director at a start-up TV station in Aurora, Illinois. (His mother would drop him off there every day after school.) "I liked being successful when I was working, and I was smart," he told BusinessWeek earlier this year. But unlike many of his Enron colleagues, Skilling wasn't deliberate and soft-spoken and happy to go home at five o'clock; he was anxious and excitable, and nothing, but nothing excited him more than what he would come to call "intellectual capital." He loved being smart, and he loved being surrounded by smart people. He graduated from Southern Methodist University, went into banking-assets and liability management-and took on Harvard Business School, where he graduated in the top 5 percent of his class. Then Skilling took the next step on what was then the new, souped-up path to American success: He joined Manhattan's McKinsey and Company as a business consultant, and that is where Ken Lay found him in 1985.
It is often said of Lay that his instincts for hiring the best are flawless, and his choice of Skilling probably saved the company. Skilling was above all an expert at markets and how they worked. While everyone else was worrying about the gluts and the shortages that defined the gas industry, he alone saw the parallels between gas and other businesses. And so in a world where credit was nearly impossible to come by, Skilling came up with what he called the Gas Bank, which contractually guaranteed both the supply and the price of gas to a network of suppliers and consumers. Enron would not be a broker but a banker. It would buy and sell the gas itself and assume the risk involved. And Enron would make money on transactions, much like an investment bank would.
Skilling worked up some numbers and found them "absolutely compelling." Then the McKinsey consultant took the idea to a meeting of about 25 Enron executives. He had a one-page presentation. "Almost to a person," Skilling says, "they thought it was stupid." Almost. After Skilling left the meeting dejected, he walked Ken Lay to an elevator and apologized. Lay listened and then said, "Let's go."
The Gas Bank was not an overnight success. For months Skilling woke up in a cold sweat, sure he had ruined not only his career but the careers of dozens of colleagues who had assisted him. In fact, he had come upon one of those divides that seem to define his life: "I believed this whole world would be different, a huge breakthrough" is the way Skilling puts it today, and even if he is typically immodest, he was right. Fairly soon after launching, the company sold $800 million worth of gas in a week. True to Skilling's character, success turned out to be a matter of old versus new: He says the joke around Enron was that if a company's CEO was under fifty, "We were in." And he was in too: In 1990 Skilling finally left McKinsey and joined Enron as the head of Enron Finance Corporation, a new division created just for him. In 1991 that company closed a deal that earned $11 million in profit. After that, says Skilling, "we never looked back."
Skilling and Lay also realized that the Gas Bank couldn't work unless it had a trading component. Myriad trades were needed to build the market that would make the project go. But by buying and selling enormous quantities of gas, Enron not only constructed a market but almost instantly came to dominate it. The company had the best contacts, the best intelligence, and the best access to supplies. That, in turn, attracted more customers who wanted to be part of the play. With so many customers in its pocket, Enron could better predict the direction of the market and could use that knowledge to make trades for its own benefit-Enron could in effect bet on which way the price of gas would go, as one might do with pork bellies or soybeans, but with startling accuracy, thereby generating profits higher than anyone could have ever imagined.
THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had made: He created, within Enron, a new culture to match its new trading business. The idea was to build a "knowledge-based business," which demanded a skill set not exactly prized by Enron's employees from the old HNG days. Most were deliberate, cautious, responsible, somewhat defensive people, most of them men, of course-the kind of people you'd expect to find working in an industry regulated by the federal government. But now the company needed bolder people for its bold new era: that included anyone who wanted to make money-lots of money-for themselves and for the company. "Enron was going to create a niche for itself or die," one former executive explains. "The people who had narrow views eventually were forced out, because if they had narrow views about other things, they had narrow views about the market."
Skilling wanted smart people but not just any smart people. He wanted the smartest people from schools like Harvard, Stanford, and maybe, Rice. And because his firm was now acting more like a bank than a pipeline company, he wanted to draw from the pool of recruits that would be attracted to the biggest and best investment banks, like Merrill Lynch or Credit Suisse First Boston. In addition to being smart, Enron people were also supposed to be "aggressive." You were right for Enron if you didn't want to wait until you were thirty to close your own deals or move up in an organization.
You could see what he was looking for on "Super Saturdays" at the Houston headquarters: eight fifty-minute interviews with ten minute breaks in between-the company might herd as many as four hundred people through in just one day. They were scored from 1 to 5 on their smarts, their problem-solving ability, their passion for hard work, and what at Enron was called "a sense of urgency." People who scored less than 2.5 were scratched. The shrewdest candidates knew how to work Enron before they were even hired: These were the types that automatically turned down the company's first offer, knowing Enron would come back with more. The starting salary was around $80,000. Maybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more than enough for a lease on the obligatory Porsche Boxster or one of the lofts being renovated close to downtown. (Enron people didn't live in far-flung suburbs. Suburbs were uncool and too far from the office.)
For the lucky winners, Enron offered the corporate equivalent of a gifted-and-talented program. New associates learned the latest techniques for structuring energy deals, and there were rotations at Enron offices around the globe. The hours were long, but every possible need was taken care of. A company concierge handled all the things important people couldn't be bothered with: picking up dry cleaning or prescriptions, shining shoes, cleaning the house, planning a vacation. Of course, a lot of people who worked for Enron never got to take vacations-they were too busy making money-but they could use the company gym and the company's personal trainers. If they were overweight or wanted to quit smoking, they could join Enron's Wellness Program. Massages were offered six days a week, from seven in the morning until ten at night. "They were so cutting edge," rhapsodizes someone involved with the company health care program at the time. "They really thought about the psychology and what it took to keep these people going."
Skilling handed out titles analogous to those at Wall Street firms-analysts, associates, directors, and managing directors-but everyone knew that those titles didn't really matter. Money did. Instead of competitive salaries and decent bonuses, Enron offered competitive salaries and merit-based bonuses-with no cap. "If you really worked hard and delivered results, you could make a lot of money," says Ken Rice, who stayed with Enron for 21 years until resigning recently as the head of the company's faltering broadband division. Or, as the saying goes, you got to eat what you killed. Gas traders with two or three years of experience could wind up with a $1 million bonus. And the more you produced, the closer you got to Jeff: Real hot dogs joined him glacier hiking in Patagonia, Land Cruiser racing in Australia, or off-road motorcycling in a re-creation of the Baja 1,000 race, ending at a spectacular Mexican villa. "Every time he'd speak, I'd believe everything he'd say," one loyalist says.
And why not? By 1995 Enron had become North America's largest natural-gas merchant, controlling 20 percent of the market. But at a company where the buzzword was "aggressive," that was no place to stop: Skilling and Lay believed the Gas Bank model could easily be applied to the electricity business. Firmly committed to the notion that a deregulated market meant better service at lower prices for consumers (and untold profits for Enron), they began barnstorming the country, pressing their case with entrenched power company presidents (who, with their multimillion-dollar salaries and monopoly service areas, had little incentive to change) and energy regulators (who were somewhat more receptive, thanks in part to Enron's generous lobbying efforts).
But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay made him the president and chief operating officer of the company. By then, the division known as Enron Capital and Trade Resources was the nations largest wholesale buyer and seller of natural gas and electricity. The division had grown from two hundred to two thousand employees, and revenues from $2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil in the industry has convinced him that he is on the right track," the New York Times noted. Everyone would certainly have thought so: Enron and Skilling had totally transformed one industry and were well on their way to transforming another.
"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within," sang the New York Times in 1999. "In the staid world of regulated utilities and energy companies, Enron Corp is that gate-crashing Elvis," crowed Fortune in 2000. Wall Street was demanding tech-size growth on a tech timetable, and Enron, in 2000, obliged with second quarter earnings of $289 million, up 30 percent from the previous year. That year the company seemed to discover a market a minute: Under Skilling, Enron was trading coal, paper, steel, and even weather. No one blinked when a London wine bar became an Enron client. People drank more in warm weather than cold, so why not buy a hedge against the usual winter downturn?
But most exciting to the financial world was Enron's entry into high-tech communications. Because of the company's marketing dominance, EnronOnline became another overnight success, handling $335 billion in commodity trades online in 2000. Enron, as usual, made its money on the spread between the bid price and the asking price. Then there was the broadband business: To Enron, trading excess capacity in large, high-speed fiber-optic networks (empty lanes on the fabled information highway) wasn't that different from trading the capacity of natural gas pipelines. So Enron created a market for what the industry calls bandwidth. Soon after, it also announced a twenty-year deal with Blockbuster to deliver movies on demand electronically to people in their homes. Enron looked like a company that couldn't lose. "Its strategy of building businesses, shedding hard assets, and trading various commodities can help it do well even in an uncertain market," BusinessWeek insisted.
There was, however, another reason Enron did so well in such a short time: the company's hard-nosed approach toward its customers. The old notion of customer service was based on the long haul-you had to nurse and coddle customers to keep them. But Enron had new markets and new ideas-customers had to come to it. Over time, the company stopping referring to its business clients as customers and began calling them "counterparties."
Skilling wanted the biggest profits on the shortest timetable: Gains were maximized by creating, owning, and then abandoning a market before it became overtaxed and overregulated. So if you wanted to launch a high-risk venture quickly-such as Zilkha Energy's new high-tech approach to drilling for oil-you got your financing from Enron because a bank would take forever to underwrite the project, if it ever would. But because Enron invented its markets and subsequently dominated them, Enron could set the terms of its deals, from the timeline to the method of accounting to whether the deal happened at all.
While many businesses used what was known in the industry as "mark-to-market accounting," for instance, Enron used it on an unprecedented scale. The company priced their deals at current market value-but it was always Enron's idea of the market value; companies that balked at their pricing didn't get deals. And while old-fashioned companies spread their profits out like annuities over a period of years, Enron took most of its profit up-front. However many millions would be made on a deal that covered several years, they went on the books in the current year. If a few analysts thought there might be something fishy about what they called "subjective accounting," investors didn't particularly care as long as the profits rolled in. As the market fluctuated and the landscape changed, the company might abandon a project that had been in the works for months because its profit margins weren't going to be high enough. "Enron is known for leaving people at the altar," says one former employee. Winning the highest possible profits for the company could even extend to Enron's attitude toward charity. When a fundraiser for the Houston READ Commission, a literacy group, called on Enron for a contribution, it was suggested that he start raising money for Enron's competing literacy charity: "Even the person who was supposed to give money away for Enron was supposed to make money for Enron," he says.
As Enron became more and more successful, the culture Skilling had created took on a dark side: The competition turned inward. As one member of the Enron family put it, "It became a company full of mercenaries." The change started at the bottom. As Enron's domination of the energy market grew, most of the recruiting frills fell away. New associates were treated much like the commodities the company traded. Global Change's Enron spies reported overhearing orders like "I need a smart person-go buy me one" or "Buy me an intelligent slave, quick." Enron had never been the kind of place where people sang to you on your birthday, but now the workaholism bordered on self-parody: A Random Acts of Kindness program lasted only a few months. It was too disruptive. People couldn't get their work done.
And, of course, Enron had a program for institutionalizing creative tension. The Performance Review Committee, which had initially been installed by Skilling in the Capital group, became known as the harshest forced ranking system in the country. Employees were rated on a scale of one to five, and those with fives were usually gone within six months. (The PRC's nickname quickly became "rank and yank.") It was a point of pride that Skilling's division replaced 15 percent of its workforce every year. As one Skilling associate put it, "Jeff viewed this like turning over the inventory in a grocery store." Skilling's approach to business-get in and get out-had become Enron's attitude toward its workers. In time, it would become many workers' attitude toward the company. Teamwork, never that valuable in a trading culture, went the way of the eyeshade and the abacus. If protocol required an Enron higher-up to come from Europe to help with a project in the Third World, he might help-or he might not, depending on whether another, potentially more lucrative project was pending elsewhere.
Everyone felt the pressure to perform on a massive scale at massive speed: "They were so goal oriented toward immediate gratification that they lost sight of the future," says one former employee. Anyone who couldn't close deals within a quarter was punished with bad PRC scores, as were the higher-ups who had backed them. Past errors and old grudges were dredged up so often as new ammunition in PRC meetings that the phrase "No old tapes" became an Enron clich?. "People went from being geniuses to idiots overnight," says one former Enron executive.
In such a hothouse, paranoia flowered. New contracts contained highly restrictive confidentiality agreements about anything pertaining to the company. E-mail was monitored. A former executive routinely carried two laptops, one for the company and one for himself. People may have been rich at Enron, but they weren't necessarily happy. One recruiter described the culture this way: "They roll you over and slit your throat and watch your eyes while you bleed to death."
BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy company into the world's leading company, he had to make one more change: Just as he had done ten years before, Skilling had to purge the company of its remaining old order. Where Enron once prized cautious executives who dealt with tangible assets like pipelines, it now valued bold executives who dealt with intangible assets. Pipelines, power plants-they may have been Enron's pride, but Skilling wanted them gone. Expensive, long-term building projects had no place when Wall Street was devoted to quick profits and enormous returns on investment capital, and Skilling knew it. "It wasn't the time for long-term approaches," an Enron executive says of Wall Street's mood. "It was the technology era."
To rid Enron of the last vestiges of its past, Skilling had to take on Rebecca Mark, long considered his rival for the CEO's job. Mark was for many years the poster child for the Enron way: Young, attractive, aggressive-her nickname was Mark the Shark-she came from sturdy Midwestern stock but had the requisite Harvard MBA. Mark was largely responsible for the success of Enron International, the asset-heavy side of the company where she developed $20 billion worth of gas and power plants, which accounted for 40 percent of Enron's profits in 1998. For this she reaped breathtaking compensation-one Enron executive estimated $10 million-and adoring press clips, including two appearances on Fortune's list of the fifty most powerful women in corporate America.
But then Mark ran into trouble with a gas-fired power plant in Dabhol, India, one of the largest ever constructed. She had played the game the Enron way: Taking Enron into a new market, she had finagled low import taxes (20 percent instead of the usual 53) and hung in through 24 lawsuits and three changes in government. But the time and expense needed to make India and other Enron plants around the globe successful did not mesh with Enron's goals, and Skilling's impatience with Mark grew.
Forcing Mark out, however, was no easy matter. Key executives left, divisions were dismantled, but she remained. The truth was Enron didn't mind firing lower-level employees, but it hated to fire the kind of aggressive, relentless people it tended to promote. The company preferred humiliation-keeping a director in his cubicle, say, but failing to include him in the glamour deals, or kicking someone upstairs with a fancy title. (One particularly difficult executive won a few years at graduate school, gratis.) A company as smart as Enron could probably deduce too that dispatching one of the most visible businesswomen in the country would provoke a public-relations disaster. So Lay and Skilling did something classically Enronian: They gave Mark her own company. Despite Skilling's contempt for asset-heavy businesses, Enron spent more than $2 billion to buy a run-of-the-mill British water utility that could serve as Enron's entry into the emerging world of water privatization. Mark was put in charge of making Enron, yes, the world's greatest water company. Azurix, as the new business was called, looked like another sure thing: Its IPO in 1999 raised $695 million.
But Mark had to succeed on Enron's increasingly abbreviated timetable in a business fraught with political and emotional complexities. Water is not like gas or electricity-owners and governments are a lot less willing to give it up, even for lots of money. The company stumbled, layoffs commenced, and confidence evaporated. By August 2000 the stock price, which had started out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much diminished, was folded into Enron. "I think it's best for Rebecca to start afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal. Or as one critic put it, "They were more interested in destroying the old culture than running a business."
As 2000 drew to a close, Skilling was in total command. In December Ken Lay announced the inevitable: "The best time for the succession to occur is when the company is doing well," he told the press. "Enron is doing extremely well now." In February 2001 Jeff Skilling took over the CEO's job.
ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-power market made it an instant target in the California deregulation debacle. Both PBS's Frontline and the New York Times took on Enron, portraying the company as a heartless colossus that used its influence in Washington (Lay and Enron's political action committee are the top contributors to George W. Bush) to force old people on fixed incomes to choose between buying food or electricity. Skilling and Lay appeared on camera singing belligerent anthems to the free market, while another memorable scene juxtaposed one of the company's jackallike traders against a hapless state employee in California, as both tried to buy power online. The Times reported that Lay had tried to persuade a new federal commissioner to change his views on energy deregulation. The bad press was, to say the least, ironic: Just as the media was pounding Enron for its omnipotence, Wall Street was discovering its weaknesses. By late March the stock price had slid to $50 a share from $80 in January.
Within Enron, the asset-based divisions took the rap for the decline. (The India plant continued to be enormously costly, at least in part because of constant turnover within Enron's management team.) But the California situation was more visible and therefore more damaging, despite Enron's claim that the state had never built enough power plants to service its population and never properly managed those it had. "For three months Gray Davis did a very good job of blaming us," says Mark Palmer, a vice president for corporate communications. "We were a Texas company. There was a Texan in the White House. California was a state that didn't put him in office, and his biggest contributor was a Texas energy company. Performance is going to take care of our stock price. The truth will take care of Gray Davis." (California utilities still owe Enron $500 million, another reason stockholders might be panicky.) But more problematic than the crisis itself was Skilling's all too apparent lack of contrition. Facing down his critics, he cracked a joke comparing California with the Titanic. ("At least the Titanic went down with its lights on.")
But the biggest problem was Enron's telecommunications division, which had been responsible for at least one third of its heady stock price. Investors believed that Enron could revolutionize high-speed communications, just as it had revolutionized gas and power. Enron estimated the global market for buying and selling space over fiber-optic cable would grow from $155 billion in 2001 to $383 billion by 2004-but then the tech bubble burst. So too did the much-hyped movies-on-demand deal with Blockbuster. For the first time in its confoundingly successful life, Enron had nothing new to take to market. Like the popular high school girl who suddenly packs on a few pounds, Enron suddenly looked less alluring to Wall Street.
Skilling launched a campaign to keep Enron's most important cheerleaders, the stock analysts, in the tent, but he wasn't cut out to be a supplicant. During the reporting of first quarter profits, he called an analyst who challenged Enron's financial reporting an "asshole." When the company reported hefty second quarter profits, many analysts questioned whether those profits had come from the generation of new business or from the sale of old assets. Ignoring the growing chorus critical of Enron's accounting, Skilling promised, as he always had, that innovations were just around the corner. "There wasn't any positive news," Carol Coale, of Prudential Financial, says now. "Basically, he talked me out of a downgrade."
The business press, so generous in the past, turned surly. Fortune had asked in March whether Enron was overpriced. ("Start with a pretty straightforward question: How exactly does Enron make its money?") The routine cashing in of stock options that were about to expire by key executives was portrayed in the media as a fire sale. (Skilling had sold $33 million worth, Ken Lay and Ken Rice close to four times that amount.) Then the Wall Street Journal reported on a fund run by the CFO that had been a source of strife within the company. (It was essentially risk management against Enron's possible failures.) Every negative story seemed to produce a concurrent drop in the stock price: By late August it had fallen below $40. Enron, so institutionally unforgiving, finally got a taste of its own medicine. "When Wall Street is in love with a stock, they're forgiving of something like accounting," says Carol Coale. "When a company falls out of favor, all these issues carry more weight."
This fact was not lost on people inside the company, who suddenly started experiencing an attack of conscience. Those who had looked the other way as the most powerful Enron executives dumped their wives and married their secretaries or carried on flagrant interoffice affairs now saw the error of their ways. "It just created an attitude," one executive still at Enron says. "If senior people are doing that, why are we held to a higher standard? There was a real culture of 'We're above everyone else.'"
Loyalty had never been prized at Enron, so there was no reason to expect it now. An old-fashioned, slow-moving company like Exxon could demand hardship duty in Baku with the promise of greater rewards down the road. "But," as one Houston oilman explains, "if you have to negotiate a hardship duty with someone who doesn't have loyalty and has money, then you have a corporation that's better suited for good times than bad."
As it turned out, that description applied to Jeff Skilling too. As the stock price stubbornly refused to ascend, he made no secret of his unhappiness and frustration. Then, after a trip to visit the families of three employees killed at a plant in England, he had an epiphany: Life was short; for him, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named a new president, arranged a trip to New York to calm analysts and investors, and promised a kinder, gentler Enron in the future. Trading anything and everything was out. The company, Lay says, will still innovate but "innovate much closer to our core." As for the culture: "Things like the Performance Review Committee, I think we could have applied better. By trying to categorize people into so many different categories, you ended up creating a morale problem."
That Skilling's supposedly brilliant colleagues were as shocked at the news of his departure as the rest of the business community may be testament to their lack of emotional intelligence. Despite Skilling's lengthy tenure with Enron, he'd always been contemptuous of the long haul; he'd always believed in cutting losses and moving on. But now that he was abandoning them when the company was in trouble, it was different. "Even Jeff's biggest detractors wouldn't have wanted him to walk out the door," one loyalist admits.
But on the day we meet, Skilling is looking forward, not back. "Look," he says with finality, "ninety percent of my net worth is in Enron. Were my interests aligned with the shareholders? Absolutely."
Free of falling stock prices and shareholder pressures, he is nestling himself back into the world of ideas. His eyes flash as he talks about new technologies. "The first wave never gets it right," he says. "The stand-alone dot-coms didn't work, but the technological applications will create a second wave that will change the world." Houston, he promises, will become the world's center of commodity trading, and he intends to be a part of it. In fact, he is already shopping for office space.
"This is the second wave, and Enron's got it," he says, almost breathless. "There are thousands of people running around the streets of Houston that get it."


Attached please find a memo prepared by the Barreras, Siqueiros y Torres
Landa firm concerning the Amparo proceeding in which Enron Energia Industrial
de Mexico, S. de R.L. de C.V. is an interested party.  This memo reinforces
the opinion previously provided by the Lopez Velarde firm.

Should you have any questions or comments, please advise.
----- Forwarded by Peggy Banczak/HOU/ECT on 11/20/2000 09:41 AM -----

	"Eduardo Siqueiros T." <est@bstl.com.mx>
	11/15/2000 09:47 PM

		 To: peggy.banczak@enron.com
		 cc:
		 Subject: Enron Energia Induistrial de Mexico

Dear Peggy:

In furtherance to our telephone conversation, please find below brief
analysis of the amparo claim submitted by Consorcio Desarrollo Economico
Mexicano, S.A. de C.V. ("Consorcio")which you have the concern may affect the
standing of permits granted to Enron Energia Induistrial de Mexico, S.A. de
C.V. ("Enron").

The main arguments presented by Consorcio in its amparo complaint seeks to
challenge the constitutionality of certain legislation, including regulations
under which permits are granted for generation of electricity. ?Further,
Consorcio challenges the actions of the Energy Regulatory (Commission
Comision Reguladora de Energia) insofar as it granted a permit to Enron and
other entities, despite the fact that Consorcio had submitted an application
earlier in 1999. ?The challenge is also directed against action of the
Federal Electricity Commission (Comision Federal de Electricidad) and Luz y
Fuerza del Centro, for executing a Supply Agreement with the permit holders.

The claim of amparo is in our belief deficient, and so is their initial
request to be granted a suspension of effects during the judicial process.

It is important to point out that the amparo claim is filed against laws and
actions of authorities, and not against private entities or actions of
private entities.

From the documents reviewed, Enron filed a brief as third interested party
affected (tercero perjudicado) whereby it essentially presented the argument
that Consorcio could not avail itself of the protection of amparo, to the
extent that it had already consented to the validity of regulations at the
time it filed itself for an application to be awarded a permit for generation
of electric energy.

In its ruling of September 29th 2000, the Second District Court for
Administrative Matters for the Federal District rejected the claim for
procedural grounds (sobreseimiento), withouit examining the merits of the
claim, insofar as it determined that there were several causes therefor,
including, but not limited to the fact that the claim against certain
authorities was inapplicable. ?It also indicated that the nature of the
permits executed by the Energy Regulatory Commission should be deemed as
actions among private entities. ?We believe this last aspect is incorrect,
although we believe there were ample causes for denial of the amparo, even
though the District Court did not examine the merits of the complaint.

The District Court did not therefore consider the arguments submitted on
behalf of Enron.

Consorcio thereafter appealed through a procedure of review (recurso de
revisi?n), challenging that the District Court failed to identify CFE and Luz
y Fuerza del Centro as authorities, even though they had powers enacted as
authorities. ?It did not, however, address the issue outlined by the District
Court on whether the permits were of a private nature.

Enron filed through its local counsel a new brief identifying the failure by
Consorcio to identify actions which affect its rights as required under
Mexican Amparo Law, while it insisted on the fact that Consorcio had
consented to the law.

In light of the above, we believe there are scarse opportunities for the
appeal (revisi?n) to be successful, because even though the Collegiate
Circuit Court were to deem that the District Court failed to examine certain
issues and decided to examine the merits of the claim, the arguments and
purported legal rights affected which were claimed by Consorcio should not be
deemed to be valid.

If you would like any clarification to the above, we will gladly oblige.

Regards,
Eduardo Siqueiros
Barrera, Siqueiros y Torres Landa
est@bstl.com.mx
===========================================================
This e-mail is private and confidential and contains information
intended only for the use of the person named above. ?If the recipient
of this message is not the one intended, you are hereby notified that
any dissemination, distribution or copying of this communication is
strictly prohibited. ?If you have received this document in error,
please send it to postmaster@bstl.com.mx immediately. ?Thank you.


What are your Trco volumes again?  I can make changes now without writing new deal tickets.


I've made a rough stab at an exhibit to capture the changes which are
necessary for the ABB contract.  Please comment on the attached, suggest
changes, etc.

I will add a rep. or condition about receiving all the change orders, etc,

FYI, I will be working on this over the weekend, should you care to comment.

Kay