TODAY: Rick Wayman, CFA, looks beyond--and under--the numbers posted by
Amazon, and comes to a different conclusion than many others around him.
Also, frequent contributor Dave Sterman warns investors against being
caught up in another wave of euphoria. And Shannon Swingle, our
contributing editor, discusses the investment opportunities afforded by
strategic sourcing.

Indeed, from B2B to B2C e-commerce, networks get a lot of play this
week: in addition to a free report on Amazon.com, readers can download a
pair of reports on networking stocks or sign up for Morgan Stanley's
free research trial to download a recent report on Network Associates
(NETA).

======================== Sponsored by =========================

Receive a 4 week RISK-FREE trial subscription to the Financial Times

Financial Times reporters all over the world cover everything from
business and economic news to world events like no other publication.
Click on the link below to start your 4 week risk-free trial
subscription and receive the insightful reports on companies and markets
worldwide with the FT's unique, global perspective.

SUBSCRIBE TODAY:

https://www.ftsubs.com/JCE14A2326
==============================================================

Below
---------

Investment ideas
Broker reports
Top 10
Free and sponsored reports

==============================================================

Investment ideas
-----------------------------------------

1. Pro forma profits: Hell freezes over (on a pro forma basis)
Could Amazon be pulling an Enron?

By Rick Wayman, CFA

I always thought that hell would freeze over before Amazon.com (AMZN)
posted a profit. This company, and the market's love affair with it, has
always amazed me. After all, how could a market (even an irrational one)
price this stock near $120 at a time when it was losing $0.44 on every
dollar of sales, which is what happened in 1999?

Ever since Jeff Bezos, the Prince of Pro Forma, announced that AMZN
would post a profit by the end of 2001, I eagerly awaited the release so
I could see how, not if, he would concoct the desired result.

I was not disappointed.

Click here to read more:
http://www.theinternetanalyst.com/article.asp?docid=6233&nd=0124

2. B2B insights: Strategic sourcing
Streamlined processes and lower costs create new investment opportunities

By Shannon Swingle, contributing editor

B2B e-commerce stocks suffered from highly publicized plummets during
the last two years, placing weaker players in jeopardy, but since
September this group has seen an impressive run-up in the shares of some
stocks. Far from being on the verge of extinction, it's a sector with
multi-trillion-dollar potential, a piece of which many vendors are
trying to grab.

Click here to read more:
http://www.theinternetanalyst.com/article.asp?docid=5983&nd=0124

3. Insider selling: Sucker's rally
Fool you twice, shame on you

By Dave Sterman, equity research analyst

In recent months, investors have returned to their speculative ways,
bidding up share prices in companies that still face challenging
outlooks to say the least. With signs emerging that the economic
recovery will be tepid at best, these investors may want to proceed with
caution. Indeed, some of the biggest gainers in recent months may be the
most vulnerable to a pullback, especially those for which the company-
specific outlook has yet to brighten.

Click here to read more:
http://www.theinternetanalyst.com/article.asp?docid=6119&nd=0124

======================== Sponsored by =========================

Rip-Roaring Returns from the Post-September 2001 Rebound!

Few profited as handsomely as Steve Harmon in today's market
turnaround. For instance, his portfolio of travel security
stocks is up an incredible +88% since 9/01. And the best is
yet to come! Get a jump on 2002 with a FREE 30-day trial:

http://www.investools.com/c/go/BRBN/MTEX2B-brbnTD3?s=S601
==============================================================

Broker reports
-----------------------------------------

1. SPECIAL REPORT: Morningstar explains why it finds FMKT attractive
despite ongoing risks.

The firm makes a valuation-based bullish investment case for this B2B
services company. An investment overview, valuation analysis, analyst
report, peer comparison, and grades on growth, profitability, and financial
health all included. (3-page report for purchase - $10)
http://www.theinternetanalyst.com/download.asp?docid=21260335&nd=0124

2. WHAT'S HOT?: Network power

C.E. UT explains why it sees sector bellwether Cisco (CSCO) and
Riverstone (RSTN) as two well-positioned companies in the space. Also,
why it is cautious on companies with focus on next-gen solutions.
Valuation comparison chart. (4-page report for purchase - $10)
http://www.theinternetanalyst.com/download.asp?docid=25935347&nd=0124

======================== Sponsored by =========================

It's here! The Multex Investor Toolbar
Now you can get broker research, quotes,
charts and company information from
anywhere on the Web.

http://www.athoc.com/wis/activate/activate.asp?pid=10279&mktmsg=JA1
==============================================================

Free and sponsored reports
-----------------------------------------

1. FREE RESEARCH REPORT:
Amazing Amazon

Stating that it believes the company has "turned the corner," Hambrecht
reviews the first ever profitable quarter for Internet retailing giant,
Amazon.com (AMZN). This 7-page report, which usually sells for $25, is
free to members for the next 72 hours.
http://www.theinternetanalyst.com/download.asp?docid=26054909&nd=0124

2. FREE SPONSOR REPORT:
Morgan Stanley sets a $35 price target for "outperform-volatile"-rated Network Associates (NETA).

The firm argues that NETA is gaining marketshare and "still has
significant margin expansion ahead." Readers can download this report,
which outlines the firm's valuation analysis and investment positives
and risks, for free by registering for the firm's free-research trial.
http://www.theinternetanalyst.com/download.asp?docid=4340536&sid=8&nd=0124

Top 10
-----------------------------------------

Top 10: Most recommended Internet stocks

This week's selection includes USA Networks (USAI), AOL-Time
Warner (AOL), and Cisco Systems (CSCO).

Presenting the latest valuation and analyst recommendation
data from Multex's proprietary stock-screening tool applied to the
universe of The Internet Analyst stocks. See tables sorting the top 10
stocks according to the highest average recommendation.
http://www.theinternetanalyst.com/article.asp?docid=1580&nd=0124

================================================================

Click here to register at Multex Investor:
http://www.multexinvestor.com/registration/regWrapA1Basic.asp

Click here for The Internet Analyst homepage:
http://www.multexinvestor.com/Analysts/HomeTIA.asp

If you'd like to learn more about Multex Investor, please visit:
http://www.multexinvestor.com/welcome.asp

If you can't remember your password and/or your user name, click here:
http://www.multexinvestor.com/lostinfo.asp

If you want to update your email address, please click on the url below:
http://www.multexinvestor.com/edituinfo.asp

================================================================
To remove yourself from this mailing list, please REPLY to THIS
email message with the word UNSUBSCRIBE in the subject line. To
remove yourself from ALL Multex Investor mailings, including the
Daily Update and The Internet Analyst, please respond with the
words NO EMAIL in the subject line.

You may also unsubscribe on the account update page at:
http://www.multexinvestor.com/edituinfo.asp

Please email your feedback to The Internet Analyst, include TIA in
the subject line at:
investor.feedback@multex.com

Please send your questions and comments to:
investor.help@multex.com

Please email advertising inquiries to us at:
advertise@multex.com

Like a specific article? Now you can send it to a friend with just
a click. Check out the send to a friend feature next to each article.

To advertise in this e-mail, ASK FOR TIA at:
advertise@multex.com


That will be fine (for the sole purpose of negotiating the ISDA).  Regards.
Sara

"JOHN G KLAUBERG" <JKLAUBER@LLGM.COM> on 03/22/2000 09:17:49 AM
To: <Sara.Shackleton@enron.com>
cc:
Subject: Fwd: Re: Western Resources

Sara:  I am out of town, but receive thed enclosed response from Carol on
this Western contract.  I assume that you are ok with LeBoeuf doing the work
on this for Western.  If not, just let me know.  If it is ok with you, I will
put together a very brief conflict waiver letter like we have done in the
past.  Because I will be out of town the rest of this week, I might not be
able to get it to you till the first part of next week, unless I can free
up.  Let me know if that is any problem.  I hope all is well.  John
Content-Transfer-Encoding: quoted-printable
Received: from proxysvr.llgm.com ([10.4.218.42]) by LLGM.COM; Mon, 20 Mar
2000 10:05:47 -0500
Received: from 10.4.218.25 by proxysvr.llgm.com (InterScan E-Mail VirusWall
NT)
Received: from gateway.llgm.com (root@localhost) by gateway.llgm.com with
ESMTP id KAA11225 for <JKLAUBER@LLGM.COM>; Mon, 20 Mar 2000 10:05:46 -0500
(EST)
From: Carol.St.Clair@enron.com
Received: from ene-ns03.nt.ect.enron.com (outbound5.enron.com
[192.152.140.9]) by gateway.llgm.com with ESMTP id KAA11221 for
<JKLAUBER@LLGM.COM>; Mon, 20 Mar 2000 10:05:44 -0500 (EST)
Subject: Re: Western Resources
To: JKLAUBER@LLGM.COM
Cc:
Date: Mon, 20 Mar 2000 09:05:26 -0600
Message-ID: <OFEBC142AA.DB9935DD-ON862568A8.0052BC3E@nt.ect.enron.com>
X-Priority: 3 (Normal)
X-MIMETrack: Serialize by Router on ENE-NS03/Enron(Release 5.0.1 (Intl)|16
July 1999) at 03/20/2000 09:05:45 AM
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Disposition: inline

John:
I checked with Sara about this and she mentioned that Kevin was supposed to
prepare a waiver letter to address this.  Could you please contact her at
853-5620?  I will be on vacation this week starting on Wednesday and given
your   schedule it might make sense to work this with Sara.  Thanks.
Carol


Shannon.

1124399, 1124401, 1124393

Thanks,

Errol

From: Shannon McPearson/ENRON@enronXgate on 05/01/2001 01:41 PM
To: Errol McLaughlin/Corp/Enron@ENRON
cc:

Subject: Post IDs

Please send me the Post ID's for NG Price, NG Price Options and NG Price
Crude, for April.
;
Thanks!
Shannon McPearson
Enron North America
713-853-5944
Shannon.McPearson@enron.com


John,

I just realized that I didn't return your call on Friday.  I ran out of the
office on Friday after two difficult days and had Cathy collect all my stuff
for my trip.  Jeff and I landed in Singapore last night at 1am (it is odd
leaving for the airport on Sat. morning and arriving on Monday morning) and
are in the office for a while this afternoon.  I'll give you a call a little
bit later.  If your call is urgent, please don't hesitate to give me a
voicemail if our time zones don't match up.
Thanks and sorry for the delay.
m


You may want to leave some time to general Rockies discussion this afternoon led by Frank and Steve.  Mike wants some order in the meeting it sounds like so you probably should leave some time for that.

Jay


[IMAGE]
 [IMAGE]    Search NYTimes.com  Today's News Past Week Past 30 Days Past 90 Days Past Year Since 1996
  [IMAGE]  [IMAGE]       Customize This E-Mail   [IMAGE]  Customize This E-Mail
   November 19, 2001  QUOTE OF THE DAY "I think the most important thing is that he is not  able to function any longer,  and we're agnostic as to how   that happens. I rather doubt   just given the circumstances here I rather  doubt we're talking about a long, drawn-out trial."  CONDOLEEZZA RICE, on whether United States troops expect to kill Osama bin Laden or capture him for trial.    HolidayShopping Holiday Shopping Take advantage of special offers and discounts -- on gifts, travel and luxury items from NYTimes.com's premium advertisers -- with the Holiday Shopping E-Mail.  Sign up now .     NATIONAL Laid Low by Last Recession, California Is Ready for Next  Experts are expressing guarded optimism over California's economic future, saying the state may come through the tough times in better shape than other regions.   Challenge Revives SAT Test Debate  The challenge being mounted against the SAT exam by the University of California has brought attention to a previously arcane debate.   Ford Motor Workers Get on the Job Training in Religious Tolerance  Several hundred Ford workers of many faiths and jobs turned out on Thursday for "An Islamic perspective on the events of Sept. 11".     MORE NATIONAL NEWS   Advertisement    The most comprehensive Real Estate listings site in town  NYTimes.com/realestate combines The New York Times Classified ads with listings from nearly every broker in the city- more searchable New York listings than you'll find anyplace else.  Most listings feature: neighborhood maps, photos, floor plans and virtual tours.   [IMAGE]   INTERNATIONAL More U.S. Troops in bin Laden Hunt; Hide-Outs Bombed  With the rapid collapse of the Taliban, the United States has intensified its pursuit of Osama bin Laden and his network.   Afghan Victors Agree to Talks on Interim Rule  Bowing to American pressure, Northern Alliance officials agreed Sunday to attend a meeting of Afghan opposition groups somewhere outside the country.   Foes Claim Taliban Are Killing Soldiers Who Seek to Defect  Foreign soldiers fighting for the Taliban have begun killing their Afghan Taliban comrades in a desperate effort to hang on to the encircled city of Kunduz.     MORE INTERNATIONAL NEWS    BUSINESS Phillips and Conoco to Form U.S. Gasoline Giant  The Phillips Petroleum Company and Conoco agreed to merge, creating an oil company with a market value of $35 billion.   Companies Compete to Provide Saudi Internet Veil  Nearly a dozen software companies are competing for a contract to help Saudi Arabia block access to Web sites the Saudi government deems inappropriate.   Wild Welcome Greets Rivera at Fox News  Geraldo Rivera's hiring as a war correspondent for Fox News has ruffled feathers inside   and outside the network.     MORE BUSINESS NEWS    TECHNOLOGY Companies Compete to Provide Saudi Internet Veil  Nearly a dozen software companies are competing for a contract to help Saudi Arabia block access to Web sites the Saudi government deems inappropriate.   Executive Moves From Ticketmaster to Trade Shows  Fredric D. Rosen turned Ticketmaster into a multibillion-dollar behemoth, but doing the same with trade show operator Key3Media is turning out to be a tough second act.   William Daley Will Assume Post at SBC  William M. Daley, the campaign chairman of Al Gore's unsuccessful presidential bid, will be the next president of SBC Communications.     MORE TECHNOLOGY NEWS    POLITICS Sept. 11 Attacks Refocused the Spotlight  The terrorist attacks have considerably altered the profiles  and power  of many of the nation's leading political figures.   Torricelli Backed Donor's Bid for a Korean Project, a Letter Shows  Senator Robert G. Torricelli recommended a political donor for a contract on a sensitive nuclear-reactor project in North Korea.   Top Democrats Politic Through Rural Mexico  Thousands of miles away from their own constituents, the two top U.S. Democrats took a ride Sunday through a rural stretch of central Mexico.     MORE POLITICS NEWS    SPORTS Jets Continue Mastery of the Dolphins  The Jets trounced the Dolphins for the eighth   straight time to vault into first place in the A.F.C. East.   Hoping for an Appealing Match  This week's rankings suggest the potential for an appealing championship game in the Rose Bowl: Miami against Nebraska.   Strahan Runs Down Success  Giants defensive end Michael Strahan is sacking quarterbacks at a pace more furious than any defensive player in N.F.L. history.     MORE SPORTS NEWS    ARTS 'Potter' Movie Sets Box Office Record  "Harry Potter and the Sorcerer's Stone" sets the record for the biggest movie opening of all time, earning an estimated $93.5 million in its first three days.   Iconoclastic Physicist for All Occasions  Peter Parnell's "QED" is such a textbook example of  biographical theater that it's hard to watch  it without seeing the diagram beneath.   Hemingway's Blessing, Copland's Collaboration  A pastiche of the adventures of young Hemingway, with a dramatic script written by A.E. Hotchner in 1957 and music composed by Aaron Copland, will finally have its premiere.     MORE ARTS NEWS    NY REGION United in Grief and Prayer, Sharing the Common Language of Tears  Thousands attended a service in Rockaways, Queens, to honor victims of the Flight 587 crash.   Torricelli Backed Donor's Bid for a Korean Project, a Letter Shows  Senator Robert G. Torricelli recommended a political donor for a contract on a sensitive nuclear-reactor project in North Korea.   With Water and Sweat, Fighting the Most Stubborn Fire  Experts are calling the World Trade Center site the longest commercial building fire in United States history.     MORE NY REGION NEWS    OP-ED  The Vanishing Act   By BOB HERBERT  The end of welfare faces the cold reality of a  recession that  threatens to leave millions of American families jobless, and all but helpless as well.   Big Mo   By WILLIAM SAFIRE  The elder Bush once called political momentum "the big Mo." Nothing gathers support like a sense of  inevitability. The younger Bush has  it now.   The Job Nobody Trained For   By ROBERT M. GATES  For all practical purposes, the   federal government started homeland defense from scratch on Sept. 11.     MORE OP-ED  NEWS    About This E-Mail You received these headlines because you requested The New York Times Direct e-mail service. To sign up for other newsletters, cancel delivery, change delivery options or your e-mail address, see http://www.nytimes.com/email .   Check or un-check the headlines you would like to receive or cancel and remember to go to the bottom of the page and click on "Save Selections."  Suggestions and feedback are welcome at feedback@nytimes.com .   Please include the following ID number when writing to feedback@nytimes.com   so that we can track any reports of problems: 6415816   How to Advertise For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact Alyson Racer at alyson@nytimes.com  or visit our online media kit at http://www.nytimes.com/adinfo    Copyright 2001 The New York Times Company


In Energy Insight for Friday, August 25
In Energy Insight Today (Blue Banner, all subscribers)
With more power in the possession of fewer companies, the amount of
generating capacity a big utility needs to compete in the marketplace is
rising.  Find out just how many tens of thousands of megawatts constitutes
"big" these days, including a list of the biggest, at
http://www.einsight.com.

Also in Energy Insight Today, European news headlines from FT Energy's team
of London-based editors.

In Energy Insight 2000 (Red Banner, premium-pay access only)
In Energy Insight Energy Services:  Energy industry business-to-business
exchanges could save utilities millions of dollars in procurement and
billing, but first they must head off antitrust issues that have plagued
other business sectors.  Details at http://www.einsight.com.

In Energy Insight Fuels:  Environmental concerns about coal, supply
shortages in natural gas plus improvements in the efficiency and design of
nuclear plants may equate to a rebound in uranium-fueled power.  Read about
it at http://www.einsight.com.

********************
News Brief

+High Cost of Oil and Natural Gas Puts FPL $518 Million Behind in Fuel
Expense Recovery

Faced with skyrocketing oil and natural gas prices and heavy seasonal demand
for electricity, Florida Power & Light Company has filed preliminary
paperwork with the Florida Public Service Commission identifying $518
million in expenses above projections for fuel burned to produce electricity
in 2000. FPL will file with the Commission in September for permission to
recover the expense in customer bills beginning Jan. 1, 2001.

Part of this increase will be offset by a refund to customers that is
currently estimated to be $75 million to $100 million. The refund is
pursuant to an agreement reached in April 1999 with the Office of the Public
Counsel and the FPSC that provides for revenue sharing between FPL and its
customers, as well as a 6% annual rate reduction for three years. As a
result of the forecasted fuel costs and the expected rebate, residential
electric rates could increase by approximately 13% per kilowatt-hour.

The cost of oil used to generate electricity has more than doubled since the
first quarter of 1999 and has not been this high since the Gulf War in 1990.
Since January 2000, oil prices have increased 44% per barrel. Natural gas
prices also have risen unabated, climbing 77% since January 2000. With the
onset of winter, natural gas prices may increase further as demand for
heating fuel increases.

/////////////////////

Market Brief    Thursday August 24
Stocks  Close   Change  % Change
DJIA    11,182.74       38.1    0.3
DJ 15 Util.     358.51  (5.7)   (1.6)
NASDAQ  4,053.28        42.3    1.1
S&P 500 1,508.31        2.3     0.2

Market Vols     Close   Change  % Change
AMEX (000)      50,373  (7,710.0)       (15.3)
NASDAQ (000)    1,548,008       85,370.0        5.5
NYSE (000)      825,146 (41,307.0)      (5.0)

Commodities     Close   Change  % Change
Crude Oil (Oct) 31.63   (0.39)  (1.23)
Heating Oil (Sep)       0.9533  (0.00)  (0.29)
Nat. Gas (Henry)        4.54    (0.07)  (1.43)
Palo Verde (Sep)        177     0.00    0.00
COB (Sep)       191     8.00    4.19
PJM (Sep)       33      0.50    1.52

Dollar US $     Close   Change  % Change
Australia $     1.745   (0.01)  (0.40)
Canada $        1.487   0.00    0.10
Germany Dmark   2.166   (0.01)  (0.46)
Euro    0.9017  (0.00)  (0.11)
Japan _en     106.83  (0.23)  (0.21)
Mexico NP       9.205   (0.02)  (0.18)
UK Pound        0.6749  0.00    0.25

Foreign Indices Close   Change  % Change
Arg MerVal      470.51  2.87    0.61
Austr All Ord.  3,330.40        7.70    0.23
Braz Bovespa    17,310.96       (139.48)        (0.81)
Can TSE 300     11,178.98       71.17   0.64
Germany DAX     7,230.26        (2.52)  (0.03)
HK HangSeng     17,439.70       12.30   0.07
Japan Nikkei 225        16,670.82       234.17  1.40
Mexico IPC      6,293.55        (73.45) (1.17)
UK FTSE 100     6,557.04        (9.20)  (0.14)
Source: Yahoo! and NYMEX


Enron's Net Soars, Despite Telecom Loss, Gaining 40% Amid Strong Energy Units
The Wall Street Journal, 07/13/01

Enron Net Rose 40% in Quarter
The New York Times, 07/13/01

Treasury Prices Climb as More Money Is Shifted To U.S. Bonds on Weakness of
Emerging Markets
The Wall Street Journal, 07/13/01

THE ENERGY CRISIS Some State Energy Consultants Own Generators' Stock Ethics:
They negotiate deals and buy electricity from power firms. GOP officials
claim credit for forcing the disclosure of potential conflict.
Los Angeles Times, 07/13/01

THE ENERGY CRISIS Plan Uses Public in Refund Demand Legislature: Democrats'
proposal to pressure 'greedy' firms is attacked by GOP as political ploy.
Los Angeles Times, 07/13/01

COMPANIES & FINANCE THE AMERICAS - Surging energy sales behind Enron advance.
Financial Times, 07/13/01

Lex - Enron.
Financial Times - FT.com, 07/13/01

UK: Paladin says Enron sells entire stake.
Reuters English News Service, 07/13/01

White House adviser targeted for dealings with Salvation Army
Associated Press Newswires, 07/13/01

UK: Bidder list for Southern Water grows-report.
Reuters English News Service, 07/13/01

DPC not to re-start work on Phase II work
Business Standard, 07/13/01

California Power Bills Exceed Refunds, Judge Says (Update4)
Bloomberg, 07/13/01

California Governor Casts Blame for Crisis, to His Benefit
Bloomberg, 07/13/01

Enron's Net Soars, Despite Telecom Loss, Gaining 40% Amid Strong Energy Units
By Rebecca Smith
Staff Reporter of The Wall Street Journal

07/13/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. posted a 40% increase in second-quarter net income, reflecting
the enormous profitability of its energy marketing and trading enterprise,
which was sufficient to offset wider-than-expected losses at its
telecommunications unit.
The Houston company had net income of $404 million, compared with $289
million a year earlier, on revenue that nearly tripled to $50 billion.
Earnings per share rose 32% to 45 cents from 34 cents.
Enron was lifted by exceptionally strong electricity- and gas-trading
volumes. In North America, natural-gas volumes jumped 9% and
electricity-trading volumes jumped 71%. In Europe, where Enron is pushing
aggressively into newly deregulated markets, trading volumes for gas more
than doubled and for electricity leapt to almost five times those of before.
From practically nothing just two years ago, Europe generates one-quarter of
Enron's energy-trading volumes.
Profits from trading more than compensated for a $101 million loss posted for
the company's telecommunications business that analysts had, until recently,
proclaimed would soon generate more income than Enron's energy business. For
the quarter, bandwidth-service revenue was $16 million. The unit posted a
loss of $8 million for the year-earlier quarter.
Enron's chief executive, Jeffrey Skilling, said prices for capacity on
fiber-optic networks, such as the one Enron has built, have been "dropping
like a rock. . . . We've been shocked at the extent."
Mr. Skilling said the company is trying to boost revenue by focusing on
fiber-optic delivery of data and entertainment -- "a narrow piece of the
business but about all that's left" -- and is hoping the glut in capacity
will evaporate as competitors go broke. He said companies that continue to
invest, despite the "market meltdown," and keep their networks state of the
art will be rewarded eventually.
Enron's results beat analysts' expectations, but several said they fear
softening electricity prices throughout the nation, and particularly in the
West, could crimp third-quarter results. "Enron benefited from unusual price
volatility," during the quarter, said Raymond Niles, an energy analyst for
Salomon Smith Barney. But it is uncertain whether that will continue with a
general softening of natural-gas and electricity prices across the country,
most notably in the West.
Mr. Skilling said he thinks California may have seen the worst of its energy
crisis. He consistently has said he doesn't think Enron's earnings will be
significantly affected by possible refund orders from federal energy
regulators or other regulatory intervention.
He added that Enron was pleased with steps the Federal Energy Regulatory
Commission took this week to encourage the formation of four big
electric-transmission grid operators in the West, the Northeast, the
Southeast and the Midwest.

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

Business/Financial Desk; Section C
Enron Net Rose 40% in Quarter
Bloomberg News

07/13/2001
The New York Times
Page 12, Column 4
c. 2001 New York Times Company

HOUSTON, July 12 -- The Enron Corporation, an energy trader, said today that
its second-quarter profit rose 40 percent as its sales of natural gas and
electricity surged in the United States and Europe.
Net income rose to $404 million, or 45 cents a share, from $289 million, or
34 cents, in the period a year ago, Enron said. Results beat analysts'
estimates by 3 cents a share.
Revenue almost tripled to $50.1 billion. Enron, which is based in Houston,
sold almost twice as much power in North America and five times as much in
Europe than in the quarter a year ago.
Although electricity and natural gas prices surged in California, Jeffrey K.
Skilling, the chief executive of Enron, said the state ''is just not a big
factor'' in Enron's increasing profits. The company bolsters earnings by
increasing sales of energy and other commodities like lumber and steel rather
than by raising prices, analysts said.
''That's the nature of the commodities business,'' said Zach Wagner, an
analyst with Edward Jones & Company. ''As markets open up, their volumes will
grow. Their margins are basically flat.''
Enron's profit margin was less than 1 percent last year and has averaged 2.1
percent the last five years, based on Bloomberg data. That compares with a
profit margin of 6.5 percent for Exxon Mobil, the largest publicly traded
energy company.
Shares of Enron have dropped 31 percent the last year, despite steadily
increasing earnings, and sales that now rival those of Exxon Mobil. Shares of
Enron rose 45 cents today, to $49.55.
Enron was expected to make 42 cents a share in the quarter, the average
estimate of analysts polled by Thomson Financial/First Call.

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

Credit Markets
Treasury Prices Climb as More Money Is Shifted To U.S. Bonds on Weakness of
Emerging Markets
By Michael Mackenzie and Andrew Gelfand
Dow Jones Newswires

07/13/2001
The Wall Street Journal
C12
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Treasury prices closed higher as renewed weakness in emerging
markets prompted investors to shift more money into the U.S. bond market.
It is common for Wall Street traders to bid Treasurys higher when weakness in
other markets seems likely to spur flows into Treasurys, which are viewed as
a haven.
But yesterday's action involved more than just Wall Street firms and provided
substantial support, mostly offsetting the bearish influence of a stock
rally. "Argentina is keeping a good bid in the [Treasury] market," said Peter
Cordrey, managing director at Prudential Investment Management in New Jersey.
Much of the focus again was Argentina, whose long-term sovereign credit
rating yesterday was cut by Standard & Poor's to single-B-minus from
single-B.
S&P said the ratings outlook for Argentina remained negative and cited
"growing strain on the cohesion of the governing coalition and the risk that
it may impede efforts by Economy Minister Domingo Cavallo to implement
draconian measures to balance the federal budget."
That country is "just looking worse and worse every time you turn around,"
said Drew Matus, market economist with Lehman Brothers in New York.
Despite indications that Argentine officials are trying to win agreement on
spending cuts, investors remained nervous about the nation's ability to
service its large external debt burden. Prices of Argentine floating-rate
bonds fell about 103/8 points to 623/8.
In U.S. Treasury trading, meanwhile, the benchmark 10-year note at 4 p.m. EDT
was up 8/32 point, or $2.50 per $1,000 face value, at 98 6/32. Its yield fell
to 5.242% from 5.276% late Wednesday, as yields move inversely to prices.
The 30-year Treasury bond's price was up 14/32 at 96 1/32 to yield 5.652%,
down from 5.684% Wednesday.
Shorter Treasury maturities preformed less strongly than longer ones, and
analysts cited gains in stocks as a reason.
The Dow Jones Industrial Average surged 237.97 points to 10478.99, and the
Nasdaq Composite Index jumped 103.70 points to 2,075.74. Treasurys are being
"pulled in two directions, and the stock market is winning in the [short]
end," said Richard Gilhooly, senior bond strategist at Paribas Capital
Markets in New York.
Another factor bolstering Treasurys was economic news. In two early releases,
the Labor Department reported both a huge rise in claims for state
unemployment benefits and slightly lower prices for imported goods.
The number of workers filing first-time applications for jobless benefits
jumped by 42,000 to 445,000 in the week ended July 7, the highest level since
about mid-1992. That raised the four-week moving average to 410,750 claims.
Today, two other economic reports may dominate the attention of bond
investors: the producer price index and retail sales, both for June.
A Dow Jones Newswires/CNBC survey found that economists believe the PPI was
unchanged in June and will show a slight 0.1% increase in the month excluding
food and energy. "The friendly inflation news should help to keep a bid in
long [dated] Treasurys," said Gemma Wright, a bond-market strategist at
Barclays Capital in New York.
A separate Dow Jones Newswires poll found that economists expect to see a
0.3% rise in overall retail sales in June, or a 0.2% sales gain excluding
automobiles.
Corporate Bonds
Marlin Water Trust II sold $475 million and 515 million euros ($439 million)
of securities via Credit Suisse First Boston and Deutsche Banc Alex. Brown.
In 1998, Enron Corp. created a special-purpose entity, to finance the
purchase of water utility Wessex Water PLC of the United Kingdom. Yesterday's
issue was a refinancing of that debt, but was done in a way that keeps the
debt off Enron's balance sheet, underwriting officials said.
The U.S. portion of the deal was priced to yield 6.31%, or 2.25 percentage
points over Treasurys. In early trading, it was quoted at 2.25 percentage
points over Treasurys, which was "reasonably positive on a day when the
corporate market was so jittery," said Stephen Kane, portfolio manager at
Metropolitan West Asset Management.
Generally, investment-grade corporate bonds weakened on concerns about
emerging markets. Yield margins to Treasurys, an important performance gauge,
widened by 0.05 to 0.10 percentage point.
Separately, Citigroup Inc. tapped the market with $2 billion of two-year
global floating-rate notes priced to yield 0.09 percentage point over
three-month London interbank offered rate, or Libor.
Agency Securities
Fannie Mae sold $2.5 billion of callable benchmark securities, which traded
strongly afterward.
Its $1.5 billion of 5.5%, five-year notes yielded 5.5657%, or 0.05 percentage
point over the Fannie Mae benchmark level on an option-adjusted spread basis.
An additional $1 billion of 6.25%, 10-year notes yielded 6.408%, or 0.03
percentage point over the Fannie Mae benchmark level on an option-adjusted
basis.
Scott Graham, head of agency trading at Greenwich Capital Markets, said his
company saw "a number of customers" who don't typically consider callable
issues, but were nonetheless looking to buy some of the new securities.
---
Sonja Ryst, Richard A. Bravo and Tyler Lifton contributed to this article.

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

California; Metro Desk
THE ENERGY CRISIS Some State Energy Consultants Own Generators' Stock Ethics:
They negotiate deals and buy electricity from power firms. GOP officials
claim credit for forcing the disclosure of potential conflict.
ERIC BAILEY
TIMES STAFF WRITER

07/13/2001
Los Angeles Times
Home Edition
B-10
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- More than half a dozen consultants hired by the state to
purchase electricity and to negotiate long-term power deals own stock in
generating companies such as Calpine and Enron that have profited handsomely
during California's energy crisis.
The potential conflict of interest emerged Thursday with the release of
financial disclosure statements by consultants who have been hired by the
state since the start of the power crunch.
Among those disclosing stock ownership were two key negotiators of long-term
energy contracts and two workers hired to purchase electricity from
generators, including some of the firms in which they hold an interest.
Several other consultants who played key roles in the state's energy efforts
decided not to file financial disclosure statements, citing legal exemptions
under state law.
Among those who did not file the financial disclosure statements were a pair
of executives at two Wall Street firms that stand to make $14 million if the
state buys California's power grid. Of about 50 consultants hired by the
state in the past six months, 27 filed the disclosures.
The disclosures follow a firestorm in Sacramento last month over the hiring
by Gov. Gray Davis of two media consultants also employed by Southern
California Edison, the troubled utility that is negotiating with the state
over a bailout package.
Steve Maviglio, a Davis spokesman, said the governor's legal staff was
reviewing the financial disclosure forms for any potential conflicts of
interest.
"If there's anything inappropriate," Maviglio said, "then we'll deal with
it."
Republicans, however, said the hired workers had revealed overt conflicts
that clearly violated state law.
Secretary of State Bill Jones, a Republican running for governor against
Davis next year, said the revelations call into question the work performed
by the consultants on high-priced energy contracts that are "going to
mortgage our children's future for decades to come."
"If you show a conflict, the potential is there for collusion," Jones said.
"I'm not accusing anyone, but that's why you have disclosure."
Rob Stutzman, a state GOP spokesman, said he was particularly troubled
because the consultants had delayed filing the disclosure forms for months.
Under state law, the forms are supposed to be submitted within 30 days after
the consultants go to work for the state.
Most of the energy consultants, who could not be reached for comment,
reported owning relatively small amounts of stock in energy firms, generally
less than $10,000.
But one of the new workers, William Mead, disclosed that he owned between
$100,000 and$1 million in Calpine, a San Jose-based energy firm. Mead did not
report when the stock had been purchased.
Only one of the contractors reported selling off stock after coming to work
for the state.
Vikram Budhraja, president of Pasadena-based Electric Power Group LLC, on
Jan. 11 purchased between $10,000 and $100,000 in stock of Dynegy, a
electricity and natural gas producer. He sold it off on Jan. 29, 10 days
after he came to work for the state. Budhraja has been a top negotiator of
the state's long-term energy contracts, which have included a deal concluded
March 2 with Dynegy.
Richard Ferreira, a retired Sacramento Utility District executive hired by
the state to negotiate long-term power contracts, reported the purchase of
between $2,000 and $10,000 of stock in Calpine, a San Jose-based energy firm,
in August 2000. He also purchased a similar amount of stock in General
Electric Co., which produces power plant equipment, in April 2000.
Bernard Barretto, an energy trader, reported that he owned an undisclosed
amount of stock in Enron Corp., a big Texas-based energy firm. Elaine Griffin
purchased between $10,000 and $100,000 in Calpine stock on Feb. 1, less than
three weeks before she came to work for the state as an energy trader.
Constantine Louie, an energy scheduler, reported owning between $10,000 and
$100,000 in Calpine stock.
Republicans took credit for forcing the Davis administration to file the
reports, a charge the governor's office brushed aside.
Jones, the secretary of state, held a news conference Tuesday to complain
about the failure of nearly all the state's energy consultants to file any
sort of financial disclosure forms. The statements were only made available
late in the afternoon Thursday, months after many consultants went to work
for the state.
Maviglio, the governor's spokesman, said the delays were explained in part by
negotiations that began in March with the Fair Political Practices
Commission, the state's ethics watchdog, to determine if the consultants were
required to file the forms.
He also suggested that Jones' accusations were fueled more by campaign
politics than any devotion to constitutional duty.
"One needs to question why the secretary of state is using taxpayer money to
investigate something beyond his jurisdiction," Maviglio said. "That's why we
have an FPPC, to look at these kinds of things."

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

California; Metro Desk
THE ENERGY CRISIS Plan Uses Public in Refund Demand Legislature: Democrats'
proposal to pressure 'greedy' firms is attacked by GOP as political ploy.
CARL INGRAM
TIMES STAFF WRITER

07/13/2001
Los Angeles Times
Home Edition
B-10
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- The Democratic-led state Senate intends to fill constituent
mailboxes with a taxpayer-financed appeal urging Californians to demand
nearly $9 billion in energy price refunds from "greedy out-of-state power
generators."
Senate leader John Burton (D-San Francisco) said the mailers will ask
Californians to join the Senate and Gov. Gray Davis in insisting that the
Federal Energy Regulatory Commission order the refunds of alleged overcharges.
Senate Democrats set the high target despite a federal mediator's ruling
against Davis earlier this week. The mediator said California would be
entitled to only about $1 billion in generator overcharges, not the $8.9
billion that Davis has fought for.
Senate officers said the cost of the mail campaign will be paid from the
budgets of senators, at taxpayer expense, as part of the Legislature's
constituent service mail program.
But Republicans attacked the mailer as political propaganda that may violate
state law and Senate policy barring issuance of "partisan" documents at
public expense.
Sketchy details of the quietly developed project surfaced on the Senate floor
Thursday. Staffers who worked on it said it was virtually impossible to
calculate the program's cost.
But they indicated that if all 26 Democrats agreed to send up to 30,000
mailers each to constituents, the postage alone would cost $140,400.
If each mass mailing exceeded 30,000 pieces, a higher postage rate would
apply, raising the cost, officials said.
In the mailer, constituents are asked to return an attached card to their
state senator, urging "full refunds of the outrageous prices charged by the
greedy out-of-state power generators."
Cynthia Lavagetto, manager of the Senate mail program, said each member will
decide what do do with the returned cards, including simply filing them or
sending them on to FERC.
Lavagetto said a prototype mailer was prepared with the help of the Select
Committee on Citizen Participation, a panel that has no chairman or members,
since it has not been activated this year. But it does maintain an office and
has three staffers on the Senate payroll.
Burton dismissed the Republican charges of partisanship as baseless. "We do
this all the time on a variety of issues," he said. "We're saying, 'Stop
stealing California's money.' "
But Sen. Ross Johnson of Irvine, the Senate's senior Republican, denounced
the mailing as clearly partisan. He said it appeared to reflect a developing
2002 election strategy of Davis and Democrats to blame the FERC and
out-of-state generators for California's energy mess.
"I seriously question the appropriateness of using taxpayer money to get
people to lobby [for the refunds]," Johnson said.
Johnson and Sen. Ray Haynes (R-Riverside) suggested that Democrats turn their
criticism to municipal utilities, including the Los Angeles Department of
Water and Power. Some utilities charged the state even higher prices last
winter than did private generators.
"Why are they not attacking the DWP?" Johnson asked.
He noted that S. David Freeman was running the DWP at the time some of its
highest prices were charged to the state, which is buying power for
California's financially crippled utilities. Later, Davis hired Freeman as
his top energy price negotiator.
"Doesn't David Freeman more properly belong in that same jail cell as the guy
called Spike than he does in the governor's office?" Johnson asked.
"Spike" has become a character in the California energy debate, thanks to
Atty. Gen. Bill Lockyer, who is investigating whether power sellers engaged
in price-gouging and antitrust behavior.
In an interview with the Wall Street Journal in May, Lockyer said he would
"love to personally escort [Enron Corp. Chairman Kenneth] Lay to an 8-by-10
cell that he could share with a tattooed dude who says, 'Hi. My name is
Spike, honey.' "

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

COMPANIES & FINANCE THE AMERICAS - Surging energy sales behind Enron advance.
By JULIE EARLE.

07/13/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Enron, the US energy trader, yesterday posted a 40 per cent rise in
second-quarter profits to $404m, due to surging gas and electricity sales in
North America and Europe.
The Houston-based company also said it would continue to grow aggressively in
Europe and seize any opportunities to expand in the US, after regulators on
Wednesday ordered the formation of an organisation to open the North American
electricity market.
Jeff Skilling, Enron chief executive, said the company had its sights set on
Europe for strong earnings growth, which it hopes will eventually match North
America.
The company's wholesale business unit, the group's main profit driver,
derives 70 per cent of its business from North America.
"We see more growth opportunity in Europe than in North America. Gas volumes
are up more than 100 per cent (in the quarter)," Mr Skilling said. "The gas
and electric market in Europe is almost as big as North America and we got an
early start."
Mr Skilling said a decision by the Federal Energy Regulatory Commission to
order the formation of four grid organisations to optimise the transmission
of electricity in parts of the US was hugely important.
He estimated only 20 per cent of the wholesale market for electricity could
be accessed and the decision would take this to 90-95 per cent.
Mr Skilling said Enron, which has transformed itself from a pipeline company
into a large energy trader, was focused on its volumes, not revenues, which
jumped to $50.1bn in the quarter, from $16.9bn a year ago.
The only poor performer was the broadband division, which trades space on
fibre-optic networks. The unit posted a loss of $102m in the quarter, against
an $8m loss a year ago, and the company said it would cut costs there.
Enron's result of $404m, or 45 cents a share, compared with $289m, or 34
cents, in the same quarter a year ago.
Analysts had been expecting 42 cents a share.
By the close in New York, the company's shares were trading 45 cents higher
to $49.55. See Lex.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

Lex - Enron.

07/13/2001
Financial Times - FT.com
(c) 2001 Financial Times Limited . All Rights Reserved

Be careful of the company you keep. Having enjoyed its status as a
telecommunications play last year, Enron is now suffering with its new
friends. The US energy trader has dropped by 40 per cent since the start of
the year - underperforming the market by a third - despite the earnings
momentum in its core energy trading business.
A 40 per cent increase in net income in the second quarter, even allowing for
inevitable questions over earnings quality, is impressive. The strength of
the energy trading business, with volumes up by almost 60 per cent, is more
than enough to offset the misery in the broadband trading business.
However, the broadband division's $102m losses are shocking, even in these
difficult times. The market has collapsed, partly owing to credit problems in
the telecoms sector. Enron's cost base is completely out of kilter with the
opportunity. At least it should not be too hard to put that right. Actual
investment in assets is limited; and by reallocating staff to the
fast-growing energy trading divisions, restructuring costs can be kept to a
minimum.
Broadband is not the only worry. California's troubles have not affected
trading volumes, but regulatory risk remains, while promises on asset sales
have not been met. Trading on 23 times 2002 forecast earnings, the valuation
looks fair for a fast-growing trading company. The upside lies in convincing
investors to give the company more credit for its value-added risk management
services. The long-term potential of broadband trading, meanwhile, is thrown
in for free.
(c) Copyright Financial Times Group.
http://www.ft.com.

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

UK: Paladin says Enron sells entire stake.

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - UK oil and exploration company Paladin Resources
said on Friday that U.S. energy firm Enron had sold the whole of its 19
percent holding.
Enron, which was Paladin's largest shareholder, sold its stake of 40 million
shares at 44 pence via HSBC.
A Paladin spokesman said the move would increase liquidity and broaden its
shareholder base.

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

White House adviser targeted for dealings with Salvation Army
By RON FOURNIER
AP White House Correspondent

07/13/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - Senior White House adviser Karl Rove, increasingly a target
of criticism from Democrats and Republicans, wound up at the center of a new
storm over his dealings with the Salvation Army.
White House aides rallied to his side, and Rove was unapologetic. But
Democratic National Committee chairman Terry McAuliffe called for
congressional hearings.
"I think the truth needs to come out," McAuliffe said Thursday. "Let's have
hearings and get to the bottom of this."
At issue was the Salvation Army's push for a regulation allowing religious
charities to practice workplace discrimination against gays, and Rove's
actions on behalf of the group. Rove said he was simply doing his job.
While McAuliffe called for hearings, Senate Majority Leader Tom Daschle,
D-S.D., seemed less riled. "Karl Rove is a very respected individual and I
wouldn't have any comment to make," Daschle said.
Thursday's flap was not the first for Rove, who oversees politics, strategy
and public liaison at the White House.
When Sen. James Jeffords bolted the GOP and turned the Senate over to
Democrats last month, Republicans accused Rove of alienating the Vermont
lawmaker during the tax-cut debate. He was fingered, too, for not warning
Bush earlier that Jeffords might jump ship.
When Rove sat in White House meetings on policy that could impact his stock
portfolio, Democrats demanded to know whether his holdings with Houston-based
Enron Corp. and Intel Corp. created a conflict of interest.
When Bush crossed some military advisers and suspended Navy bombing on the
Puerto Rican island of Vieques, Rove's involvement in the case was held up as
proof by critics that the decision was politically-motivated.
Rove's involvement in the Salvation Army case has stirred debate in
Republican and Democratic circles about whether he wields too much power and
is too political for the White House.
The White House rejected the Salvation Army's request Wednesday, but only
after the revelation of an embarrassing Salvation Army memo. The memo said
the administration had promised to issue a regulation protecting it and other
religious charities from efforts to prevent such discrimination in exchange
for the Salvation Army's support of Bush's plan to open government programs
to religious groups.
White House officials left the impression that no senior officials were
involved in the discussions, failing to point out Rove's activity until
Thursday.
In a telephone interview, Rove said he recalled having just three or four
brief discussions on the topic. He received a request from a Salvation Army
ally to looked into the rule, sent the ally to the White House faith-based
office, forwarded the written request to a government lawyer and was told
later by the lawyer, "We're not certain there's anything we can do."
The lawyer, Jay Lefkowitz, told reporters the request lay dormant after his
discussion with Rove.
Rove rejected the criticism. "My job is not to say, `Don't send me something
or call me.' My job is to keep my eyes and ears open and send things to the
appropriate departments," he said.
Some top Republicans outside the White House said Rove has become a
lightening rod.
"Part of his role is to be a deflection shield for the president," said GOP
consultant Rich Bond. "Everytime Karl takes a hit, it's one less hit the
president has to take. Karl knows that and he is a big boy."
Aides say the president is not troubled by Rove's actions, even joking about
the controversies.
White House chief of staff Andrew Card also defended Rove.
"I may be naive, but we have no problem of division on the senior level,"
said Card. "I was in the Reagan White House when we had three clear camps ...
We don't have that here."
Aides do acknowledge, however, that there is some resentment of Rove in the
lower ranks of the White House. Some grumbled that Rove did not let White
House press secretary Ari Fleischer know Wednesday about his involvement in
the Salvation Army case. Others, still tired from a tough campaign and
frustrated by their new jobs, said they resent Rove's wide reach.

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

UK: Bidder list for Southern Water grows-report.

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - More potential bidders have emerged that may
challenge Italian utility ENEL for Southern Water, the British regional
utility put up for sale by its parent Scottish Power Plc earlier this year, a
trade magazine reported on Friday.
Utility Week said British gas and homes services retailer Centrica had teamed
up with French utility Vivendi Environnement , which already owns UK water
assets, "to consider a bid".
But it cited unnamed sources saying the German-owned investment bank WestLB
Panmure, which was behind a management buyout of Southern Water's neighbour
Mid Kent Water earlier this year, had "emerged as front-runner in the past
week".
ENEL has said it is interested, and according to Reuters' industry sources
Scottish Power's floor price is 1.7 billion pounds ($2.4 billion) excluding
any attached debt.
Scottish Power said in March the business was for sale.
It needs the cash to help fund its own plans for expansion in the United
States, where industry sources say it has held talks on buying Portland
General, a power utility owned by Enron Corp , which neighbours the UK
group's own PacifiCorp arm.

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

DPC not to re-start work on Phase II work
Our Regional Bureau NEW DELHI

07/13/2001
Business Standard
3
Copyright (c) Business Standard

Enron-promoted Dabhol Power Company (DPC) today said that Enron Corp chairman
Kenneth Lay during his meetings with the Centre and the Maharashtra
government had not agreed to any proposal to complete the construction of
phase-II of the power project.
"Dabhol Power Company believes that a decision to recommence construction
cannot be made unless various issues relating to the project are completely
resolved," DPC said in a statement.
It said that any discussion that Lay had on recommending construction of
phase-II was in the context of the current uncertainties surrounding the
project.
DPC said that contractors working on the project resorted to termination due
to non-payment of their dues as lenders had stopped disbursing funds.
"This decision was taken as a result of continuing defaults by MSEB
(Maharashtra State Electricity Board), including MSEB's repudiation of the
PPA, their failure to pay outstanding invoices and their stated unwillingness
to accept phase-II power, as well as failure of the government guarantors to
honour their payment guarantees," said the statement.
It added that the situation had not changed.

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

California Power Bills Exceed Refunds, Judge Says (Update4)
2001-07-12 21:40 (New York)

California Power Bills Exceed Refunds, Judge Says (Update4)

     (Adds legislator comment in sixth paragraph, details from
judge in 11th paragraph, negotiator comment in 12th paragraph.)

     Washington, July 12 (Bloomberg) -- California's debts to
power sellers for electricity purchases exceed any refund the
state can claim for alleged overcharging, a judge overseeing
settlement talks said in a report to federal regulators.
     California and its utilities may be owed more than $1 billion
on claims generators overcharged them, Administrative Law Judge
Curtis Wagner wrote in a report to the Federal Energy Regulatory
Commission. California alleges power sellers like Duke Energy
Corp., Enron Corp. illegally inflated prices by $8.9 billion.
     ``While there are vast sums due for overcharges, there are
even larger amounts owed to energy sellers'' by California and its
utilities, Wagner wrote. He said the state is owed ``hundreds of
millions of dollars, probably more than a billion dollars.''
     The decision strengthens the generators' claim that the
state's request for billions isn't supported by the facts. Energy
companies have offered a total of $716 million in refunds to the
state, Wagner said.
     FERC-ordered negotiations between the state and the energy
sellers broke down without an agreement this week. FERC will
decide on the size of refunds within 60 days. California Governor
Gray Davis has said the state will sue if it does not receive the
refunds it demanded.
     ``I find it unlikely that someone will not be unhappy enough
to go to court,'' said State Senator Debra Bowen, a Democrat from
Los Angeles. ``There's too much money at stake.''

                         Wagner's Report

     FERC will use Wagner's report to calculate the size of any
refunds. California could receive refunds in the form of credit
against power-buying debts. In his report, Wagner didn't say how
much the state and its utilities owe to power companies.
     ``Can a cash refund be required where a much larger amount is
due the seller? The chief judge thinks not,'' wrote Wagner, who is
FERC's chief administrative law judge.
     Wagner provided suggestions to the FERC commissioners on how
to set any refunds. He urged that they calculate potential
overcharges beginning October 2000. California had urged the
settlement be figured from May 2000.
     Davis criticized that decision, calling it ``a $3 billion
free gouge for the generators'' in a statement released by his
office.
     The judge said California had rejected a settlement offer he
made during the talks. He did not say what that settlement offer
was. He said California would not budge from its initial demand.
He also said California did not provide him some of the background
information he requested until this week.
     ``If we had more time we might have been able to respond more
quickly, but we did the best we could,'' said Michael Kahn,
chairman of the Independent System Operator, the state's electric
grid manager. He led the state delegation.

                    Heart of Dispute

     At the heart of the dispute are federal regulations that
require power sellers to charge only those rates deemed by federal
regulators to be ``just and reasonable.'' FERC had price caps in
place when some of the disputed power purchases were made.
     Energy companies claim that rising natural-gas prices and a
lack of adequate supply pushed prices up. The state accuses the
companies reaping unreasonable profits.
     Davis has made attacks on power generators a staple of his
response to the energy crisis, and has accused them of gouging the
state in dozens of speeches since January. He said that if the
state isn't paid $8.9 billion, it would sue for up to $20 billion.
     Energy executives accuse Davis and California political
leaders of attempting to scapegoat the energy companies for a
failed deregulation plan that led to soaring wholesale prices last
year. The state's largest two utilities can't pay for their power.
     ``It's pretty clear that the state has no particular interest
in resolving this,'' Enron Chief Executive Jeffrey Skilling said
in an interview with Bloomberg News. ``It makes for good political
fodder, and so I think they'll spend a lot of time making a lot of
noise about it.''
     Several other energy companies praised the judge's
recommendations.
     ``We agree with the judge's position that the $8.9 billion
refund number is totally unsubstantiated,'' Duke Energy Corp.
spokesman Tom Williams said.
     PG&E Corp.'s Pacific Gas & Electric and Edison
International's Southern California Edison, the state's largest
investor-owned utilities, ran up more than $14 billion in debt
buying electricity last year. The state stepped in and began
buying power for them in January, and has spent more than $7
billion.

California Governor Casts Blame for Crisis, to His Benefit
2001-07-13 03:03 (New York)

California Governor Casts Blame for Crisis, to His Benefit

     San Francisco, July 13 (Bloomberg) -- California Governor
Gray Davis's popularity is bouncing back, and pollsters credit the
Democratic lawmaker's campaign to blame the state's energy
problems on out-of-state power companies.
     Davis has criticized Duke Energy Corp., Enron Corp. and other
power sellers as price gougers since January. This week, Davis
used a power-plant opening as a platform to claim that energy
sellers are ``bleeding us dry.'' The Democratic state attorney
general and Democratic-controlled state Senate are investigating
the firms for market manipulation.
     The governor is winning support because of his attacks. A Los
Angeles Times poll in June showed that 86 percent of Californians
believed power generators distorted prices. Davis's approval
rating rose to 52 percent of registered voters in June, from 46
percent in early April, his lowest since being elected in 1998,
his pollster, Paul Maslin, found.
     ``Gray Davis is very good at licking his fingers and seeing
which way the political winds blow,'' said Bruce Cain, a political
science professor at the University of California at Berkeley.
``And he's found good villains.''

                    Outlook for Settlement

     The politics may make it harder for the state to reach a
settlement with energy companies for claims they overcharged the
state by $8.9 billion, analysts say. A federal judge overseeing
settlement talks said the state is owed far less. Davis says the
state will sue for $18 billion if its demands aren't met.
     ``There is no way you are going to get any kind of agreement
from someone making such audacious claims,'' said Donato Eassey,
an energy analyst at Merrill Lynch & Co. in Houston.
     The refunds may be secondary to Davis's effort to be re-
elected in 2002, a victory that political analysts say position
him as a contender for national office in 2004.
     ``He's in good shape going into 2002, and if he wins, there's
the inevitable speculation about whether he eyes a run for
president in 2004,'' Cain said.
     Just months ago, Davis's public approval ratings were at
their lowest point since he was elected, according to a Field
Institute poll in April.
     PG&E Corp.'s utility, the state's largest, was in bankruptcy.
Wholesale-power prices were rising, and millions of Californians
lost power in a string of blackouts caused by reduced power
reserves.

                         Governor Rebounds

     The governor was widely criticized for failing to act swiftly
to end the crisis. Now Davis seems to be recovering, analysts
said.
     While vilifying the power companies, the first-term governor
has also been spearheading the state's response to the energy
crisis. He has created a team to negotiate a financial rescue
package to save Edison International's Southern California Edison
utility from bankruptcy, started an $800 energy conservation drive
and pushed for more power plants to be built.
     The energy companies lashed back at Davis this week. A
spokesman for Enron Corp., the world's largest energy trader,
accused Davis and California leaders of conducting a political
``witch hunt.''
     ``The last thing they want to do is take responsibility for
the problem they created,'' Enron spokesman Mark Palmer said.
``They set about looking for the biggest villains.''
     Enron filed suit against a California state Senate committee
investigating allegations of market manipulation, accusing the
panel and its Democratic chairman in a letter of seeking a
``scapegoat'' for a failed deregulation law.

                   Plotting his Response

     Davis began plotting his response to the crisis almost
immediately after it became public in January, said Garry South,
his chief political strategist. Step one, Davis aides said, was to
blame the energy companies that were profiting from the state's
woes. Davis targeted a half-dozen companies. In addition to Enron
and Duke, Mirant Corp., Reliant Energy Inc., and Williams Cos.
were placed in the crosshairs.
     ``There was a group of perpetrators from out of state
manipulating this system and screwing consumers,'' South said.
``We had to explain how this thing happened.''
     Republicans criticize Davis for inaction on the crisis, while
acknowledging he is favored to win re-election going into next
year's campaign.
     He leads three potential rivals -- Secretary of State Bill
Jones, banker William Simon, the son of former Treasury Secretary
William Simon, and former Los Angeles Mayor Richard Riordan,
according to the Times poll of 1,541 state residents conducted
June 23-26.
     ``He will be the favorite,'' said Rob Stutzman, a consultant
for the California Republican Party.

                         Worries Ahead

     Davis still has worries as the state struggles to address the
energy crisis, analysts say.
     PG&E Corp.'s Pacific Gas & Electric filed for bankruptcy in
April. Edison International's Southern California Edison, the No.
2 utility, is struggling to overcome legislative opposition to the
financial-rescue package negotiated by Davis.
     Davis may be blamed, analysts say, if the state Legislature
refuses to ratify the rescue plan for Edison and the utility files
for bankruptcy. Republicans and many Democrats in the Legislature
oppose the agreement, known as a memorandum of understanding.
     ``The MOU's dead, and the likely scenario is for the utility
is to go into bankruptcy,'' said Peter Navarro, an associate
professor of economics and public management at the University of
California at Irvine.
     California voters may receive unpleasant reminders of the
crisis all summer. The state has already suffered through six days
of rolling blackouts, and more are predicted.
     ``As soon as the lights go out, it's Gray's fault,'' Navarro
said.


Donna Piazze
Program Director
Field Application Project
The Wharton School
Univ. of Pennsylvania
(215) 573-8394
(215) 573-5727 fax
fap@management.wharton.upenn.edu
piazze@wharton.upenn.edu


Financial Desk
State's Utilities Could Be in Hot Water as Bills Are Due Power: Whether they
can collect funds for escalating costs is a question that worries Wall
Street, others.
CHRIS KRAUL

09/22/2000
Los Angeles Times
Home Edition
Page A-1
Copyright 2000 / The Times Mirror Company
As the meter runs on California's electricity crisis, shock over this
summer's price spikes is giving way to a new concern: uncertainty over
whether and how the state's three investor-owned utilities can collect the
staggering amounts in power costs they haven't been allowed to pass through
to consumers.
The unanswered question is how high the bill--now $4 billion and
counting--will go, and whether consumers will foot all or part of it. And
that there are no easy answers--perhaps short of an overhaul of the state's
deregulated power market, or legislation from officials seemingly reluctant
to act--only adds to the growing anxiety.
Rate freezes in effect at Southern California Edison, Pacific Gas & Electric
and San Diego Gas & Electric, which serve about three-quarters of the state's
residents and businesses, are forcing the utilities to borrow an estimated $1
billion a month to cover their added wholesale costs. Those loans are
draining the companies' resources and threatening their financial structure,
analysts say.
The rising unpaid balance presents a longer-term burden that worries Wall
Street, the state's business interests and, of course, the utilities. If
passed along to consumers, the amount could ultimately negate the promised
benefits of cheap energy that were the reason for being for the landmark
deregulation of California's electricity industry. But making the utilities
absorb the entire "undercollections" would strike a grievous financial blow
to the companies.
The crisis also has created a potential time bomb for shareholders of parent
companies Edison International and PG&E Corp. Skyrocketing wholesale
electricity costs are canceling out deregulation's underlying assumption of
low-cost wholesale energy--and the projected generous retail margins with
which utilities were to pay off nuclear plants and other uneconomical assets.
The deregulation law gave utilities until March 2002 to complete the payoff,
when open-market conditions would take over in their service areas. But with
wholesale electricity costs where they are, the "stranded asset" balances are
growing instead of shrinking--and posing an enormous potential hit for
shareholders, who would have to absorb the remaining "bad asset" costs after
the deadline passes.
Whether the companies' shareholders or ratepayers--or both--end up footing
the undercollection bill, all Californians could pay in the long run,
analysts say, if current market problems remain unresolved and the state is
seen as a less attractive place in which to do business.
How will it all shake out? Wall Street is as much in the dark as
Californians, said Lori Woodland, an analyst with Fitch Inc. of Chicago, one
of three debt-rating agencies to recently lower their outlooks for Southern
California Edison, PG&E, SDG&E and their parent companies.
"It's not clear how regulators view this issue," Woodland said. "They may
permit the utilities to recover their costs [from ratepayers]; they may not.
That's a big uncertainty, and it may remain this way for months. Meanwhile,
power prices are very high, and significant amounts of money are flowing out
the door of the utilities."
The uncertain prospects for collecting those billions of dollars also affect
stock prices, and PG&E in particular has slumped in recent days as the
implications register with investors. From a high of $31.64 on Sept. 11, PG&E
shares have dropped to Thursday's close of $23.19 on the New York Stock
Exchange.
Amid the finger pointing and doubts, many wonder if electricity deregulation
itself could be junked and the state's power industry re-regulated. Others
suggest that rate freezes be extended indefinitely or hope that the Federal
Energy Regulatory Commission now investigating the California electricity
market will take corrective action to make it all better.
Although the parties involved all seem fearful of the dimension of the crisis
and doubtful of any near-term solution, consensus couldn't be less evident
among the major players on how to deal with it. Although all three utilities
agree the current market isn't working, they have not come forward with a
common plan to solve the crisis and aren't working on one, sources say.
Partial lifting of the rate freezes is advocated by PG&E Corp. and Sempra
Energy, parent of SDG&E, the first state utility to pay off its stranded
costs and thus be allowed to fully pass along wholesale costs to customers.
The state Legislature has since stepped in to freeze SDG&E rates after a
political firestorm fed by customer protests over bills that doubled and even
tripled during the summer.
Lifting the rate freeze would stem the tide of electricity undercollections,
a sum the utilities realize is not necessarily collectible in the current
political climate.
"We have to fix these retail rates, which mask the true cost of electricity
and which are creating the shortfall," said SDG&E President Edwin A. Guiles.
In San Diego, for example, the average price paid by SDG&E customers zoomed
from 11 cents per kilowatt-hour last year to 28 cents at its highest point
this summer, before the Legislature stepped in to cap the rates, bringing the
average price paid down to about 10 cents.
So tinkering with the rate freeze could be politically hazardous.
"The pain we saw in San Diego this summer is something we want to avoid for
our customers in Northern and Central California," said PG&E spokesman Jon
Tremayne.
PG&E is expected soon to formally petition the state Public Utilities
Commission to lift its rate freeze. The San Francisco-based utility argues
that the $2.8-billion value of its Northern California hydroelectric
properties, which under deregulation it is required to divest, would erase
its stranded costs and make it eligible to pass along wholesale costs to
consumers.
Southern California Edison's chief financial officer, Jim Scilacci, said the
utility could possibly be eligible to lift the rate freeze later this year if
planned asset sales bring high enough prices.
But with the legally mandated rate freeze in effect in San Diego, observers
doubt that the state would let PG&E and Edison revert to market prices.
In response, some consumer advocates are saying, in effect: Let the
utilities, which ignored warnings of the electricity shortages at the root of
the summer's price spikes, lie in the beds they made and pay the unforeseen
costs of deregulation themselves.
"Essentially this is the result of a deal gone wrong. It's buyer's remorse,"
said Michael Shames of the Utility Consumers' Action Network, a San Diego
watchdog group. "The utilities cut a deal, and now they don't like the terms
of the deal and they want out of it."
Somewhat more flexible is Ed Yates, senior vice president of the
Sacramento-based California League of Food Processors, whose energy-intensive
industry could be devastated by the full brunt of high wholesale energy
costs.
"What frightens us is that the utilities and the state could declare the rate
freeze over and we'd have a San Diego situation," Yates said, referring to
how the rising summer power costs made some San Diego County agricultural
products noncompetitive. "What we want is rate stability. But I don't see a
solution. There are powerful interests at work who don't agree on the goal."
State officials are divided, with some including PUC President Loretta Lynch
looking to the federal government to impose order. Gov. Gray Davis has
discussed holding an energy summit next month to try to hash out solutions,
but no date or agenda have been set.
"The governor is obviously aware of the problems that California utilities
are facing and continues to be committed to making deregulation work and is
calling on everyone involved to act in a responsible way," said spokesman
Steve Maviglio, adding that Davis has set aside much of October to work on
the problem.
Lynch made it clear she will be unreceptive to any solution that would have
consumers absorbing all of the undercollections and that resolving the
utilities' huge debts must come as part of a comprehensive overhaul of
California's dysfunctional electricity market.
"I don't think there is a simple solution. The utilities have a problem, I
agree, but the resolution is much more complex than having the ratepayer eat
the bill," Lynch said. "The answer lies in a broader solution of addressing
the wholesale energy market."
Unclear is how long Wall Street would wait for some kind of resolution before
downgrading utilities' debt, the next step after the negative outlook
revisions.
"There are obviously many challenges presented to the power industry," said
Standard & Poor's David Bodek. "The costs are very high and at the end of the
day have to be borne by someone. If it's the utilities, there are financial
implications that could impact credit quality."


Just a note to remind you that we are going to try and run a full DPR on Monday for today's trading.  Please remember to have your groups export the P&L files (all groups) and benchmarks (gas & liquids).

If you have any questions, comments, concerns, you can reach me on my mobile at 713 408 4315 or contact Chris at X33102.

Thanks

Shona

 -----Original Message-----
From: 	Wilson, Shona
Sent:	Wednesday, December 12, 2001 4:32 PM
To:	White, Stacey W.; Gossett, Jeffrey C.; Leuschen, Sam; Brown, Matt A.; Trevino, Susan; Ayala, Susie; Abel, Chris; Mills, Scott; Albrecht, Kristin; Miralles, Albert; Hall, D. Todd; Bruce, Michelle; Glover, Sheila; Carrington, Clara; Fondren, Mark; Evans, Casey; Swinney, John; Sweeney, Kevin
Subject:	FW: status update on the DPR

FYI based on our convo yesterday.  Please let me know if there is any info that has come up since we last spoke to lead you to believe this may not be possible.

thanks

 -----Original Message-----
From: 	Wilson, Shona
Sent:	Wednesday, December 12, 2001 4:29 PM
To:	Abel, Chris; Andrews, Naveen; Apollo, Beth; Beck, Sally; Belden, Tim; Bowen Jr., Raymond; Bradford, William S.; Brooks, Loretta; Buy, Rick; Castleman, Kent; Causey, Richard; Cockrell, Rainier; Colwell, Wes; Curry, Wanda; Day, Misti; Delainey, David W.; Dietrich, Janet; Fallon, Jim; Frevert, Mark; Gold, Joe; Gossett, Jeffrey C.; Haedicke, Mark E.; Hagelmann, Bjorn; Hall, D. Todd; Hanson, Kristen J.; Hardy, Trey; Hayden, Frank; Helton, Susan; Hickerson, Gary; Hillis, Kimberly; Hodges, Georgeanne; Kaminski, Vince J; Kass, Michael; Kathol, Sherri; Killen, Faith; Kitchen, Louise; Lavorato, John; Lay, Kenneth; McKinney, Hal; McMahon, Jeffrey; Mills, Scott; Moscoso, Michael E.; Murphy, Ted; New, James; Piper, Greg; Port, David; Presto, Kevin M.; Schmidt, Darin; Schoppe, Tammie; Shepperd, Tammy R.; Talley, Darin; Ueckert, Allen W.; Valdez, Veronica; Whalley, Greg; White, Stacey W.; Whiting, Greg
Subject:	status update on the DPR

We have postponed issuing the DPR until the terminations that have already been entered into are appropriately reflected in the risk books.  My aim is to produce a full preliminary DPR next Monday for this Friday's trading activity.

Please call me if you have any questions or comments.

Shona Wilson
Director, Global Risk Operations
X39123


Super Saturday is super early---7:15 sat. morn. and I'm at my desk.   Sounds
like all your events will be fun.  I'm counting on your helping me with my
parties, too!
Sounds like this week is busy, but I'm around next weekend.  We'll figure it
out this week.  No message yesterday, so I rescheduled it for late afternoon
today, can wait.

Later--Jeff

Alexandra Saler@EES
11/10/2000 01:20 PM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: Re:

this was the wierdest book I have ever read.  It was called The Story of O,
and it about this sex cult in Paris and it totally freaked me out.  I am glad
that it is over.  I started another one last night that is a little bit
lighter.  Three generations of Jewish women in the south kind of thing.  tell
me if yours is good.  I haven't read it.  I am going to the chronicle book
dinner on sunday and I am totally psyched.  if you want me to get any of the
books signed for you let me know.  Ted Coppel will be there with his new
book.  I am running out so leave me a message if you want it.  Have a great
weekend!  I am bummed you can't make next thursday, so we will have to plan
something fun soon.
ALI

To: Alexandra Saler/HOU/EES@EES
cc:
Subject: Re:

Everything was ok, just busy.  Good book?  I just started "When the sons of
heaven meet the daughters of earth"  have you heard of it?  I'd absolutely
love to go the the Anne Frank thing, but I can't get back from the management
conference.  I'm on a panel (with Jeremy) early Friday a.m.

Alexandra Saler@EES
11/10/2000 08:16 AM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: Re:

they must make you sign a confidentiality agreement when you walk in the
door!  well, I guess I have no choice but to believe you, even though some
juicy details would be kind of fun!
Her piano was so bad they had to do it twice.  At least I got to finish a
book.

To: Alexandra Saler/HOU/EES@EES
cc:
Subject: Re:

piano tuning?  nothing bad about last night--very tame.

Alexandra Saler@EES
11/09/2000 12:01 PM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: Re:

ok...so I do want the low-down on last night b/c I am sure there is a lot
that is inappropriate for email!  I will be out of the office all afternoon
so if you want to talk I'll be on my cell phone 256-5582.
Big....small....it is still the Enron Executive Committee and you should feel
extremely proud.  I am so happy for you!
I hope that you have a great lunch and that your speech went will this
morning.

ali

To: Alexandra Saler/HOU/EES@EES
cc:
Subject: Re:

Great!  Sorry YOU weren't there...
I'm on my way out  for a lunch.  I'll call you later.   (I'm excited about
the exec committee, but it is a little big, so I told Skilling we should
rename it the exec villiage!)

Alexandra Saler@EES
11/09/2000 11:06 AM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject:

how was the dinner?  I heard that there are PLENTY of girls there!


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 08/11/2000
08:08 AM ---------------------------

	Dawn Derr @ ENRON
	07/17/2000 11:02 AM

To: Rob Walls/NA/Enron@Enron, Monica Reasoner/HOU/ECT@ECT, Greek
Rice/Corp/Enron@ENRON, Larry Dallman/GPGFIN/Enron@ENRON, Christine
Schlaudraff/Corp/Enron@ENRON, Rodney Faldyn/Corp/Enron@Enron, Sally
Beck/HOU/ECT@ECT, Suzanne Brown/HOU/ECT@ECT, Mark Koenig/Corp/Enron@ENRON,
Elizabeth Linnell/HOU/EES@EES, J Mark Metts/NA/Enron@Enron, Charlene
Jackson/Corp/Enron@ENRON, Gary McCumber/HOU/ECT@ECT, Robert
Johansen/Corp/Enron@ENRON, Paul Clayton/HOU/ECT@ECT, Vince J
Kaminski/HOU/ECT@ECT, Billie Akhave/EPSC/HOU/ECT@ECT, Cynthia
Barrow/HR/Corp/Enron@ENRON, Sharon Aulds/HR/Corp/Enron@ENRO
cc:
Subject: Operating & Strategic Plan 2001 - 2003

Please use the Budget Format sheet attached below.  There is an error in the
Executive Summary sheet of the original file.  Hope this does not cause
anyone undue problems.

thanks.

Dawn
---------------------- Forwarded by Dawn Derr/Corp/Enron on 07/17/2000 12:01
PM ---------------------------

	Dawn Derr
	07/14/2000 03:17 PM

To: Rob Walls/NA/Enron@Enron, Monica Reasoner/HOU/ECT@ECT, Greek
Rice/Corp/Enron@ENRON, Larry Dallman/GPGFIN/Enron@ENRON, Christine
Schlaudraff/Corp/Enron@ENRON, Rodney Faldyn/Corp/Enron@Enron, Sally
Beck/HOU/ECT@ECT, Suzanne Brown/HOU/ECT@ECT, Mark Koenig/Corp/Enron@ENRON,
Elizabeth Linnell/HOU/EES@EES, J Mark Metts/NA/Enron@Enron, Charlene
Jackson/Corp/Enron@ENRON, Gary McCumber/HOU/ECT@ECT, Robert
Johansen/Corp/Enron@ENRON, Paul Clayton/HOU/ECT@ECT, Vince J
Kaminski/HOU/ECT@ECT, Billie Akhave/EPSC/HOU/ECT@ECT, Cynthia
Barrow/HR/Corp/Enron@ENRON, Sharon Aulds/HR/Corp/Enron@ENRON
cc: Elaine Schield/Corp/Enron@ENRON, Terry West/Corp/Enron@ENRON

Subject: Operating & Strategic Plan 2001 - 2003

Attached are the Guidelines and the Budget Template for the 2001 - 2003
Operating & Strategic Plan.

 A Budget Template should be completed for each Cost Center in your
area/group that will be utilized for 2001.  All budgets are due to Corp.
Financial Planning no later than close of business August 14, 2000.

While Corporate Financial Planning has attempted to make the process as easy
as possible, we know questions will arise.  Please feel free to contact me at
X37775 with any questions or problems.

Thanks in advance.

Dawn


Stacey,

Per my voicemail please find below three additional questions regarding
Schedule
C that we will discuss at our meeting on Friday.

   Was the booking of the $26 million Modesto option reversed?
   Does Schedule C still reflect the $11.4 million related to the BPA Federal
   Surplus Clause?  Is BPA delivering power under the contract?
   Have there been any subsequent changes in the values of power options since
   the first quarter?

If you have any questions, please call me at X6-6269.  Thank you.

Jennifer

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

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


How well do you know our Code of Ethics?

"It is a condition of employment that each employee accept the responsibility of complying with the foregoing policies.  The Company will require each employee of the Company to complete and submit a statement in a form designated by the Company pertaining to such employee's compliance with the policies set forth in this booklet.  The Company reserves the right to request any employee to complete and submit such statement at any time or as frequently as the Company may deem advisable."
(Enron Code of Ethics, July 2000, page 62)

What does that mean?

In layman's terms, everyone employed by Enron agrees to all the policies and standards listed in the current Code of Ethics (July 2000).

Who does it apply to?

The Code of Ethics applies to all employees, third party contractors, guests and licensees of Enron.  Additionally, employees are responsible for their family members and/or personal household who use, own, or have access to Enron's communication services and equipment -- including telephones, fax machines, computers, computer modems, long distance telephone services, cell phones, voice mail, pagers, e-mail, mail and delivery services.

What about my privacy?

Don't expect privacy when using Enron's equipment or services -- whether the activity is business or non-business related.  For example, don't use Enron's equipment to send or receive personal messages that you don't want monitored or accessed by the government, third parties or Enron.  In a nutshell, if you want privacy, don't use Enron's equipment.

Are there repercussions for non-compliance?

Yes.  An employee who violates any of the policies in the Code of Ethics is subject to disciplinary action, including suspension or termination of employment, and can include legal action if Enron believes it to be appropriate under the circumstances.

If you have any questions or comments about IT security or a related issue, please feel free to put them into eMeet (http://nahou-lnapp01.corp.enron.com/eThink/eMeet.nsf) under the "IT Security" category.  We'll monitor the site and respond to you there.


Here are the EES contracts that we have designated as Tier One priorities.  I
am attempting to identify the internal deal contacts (Service Mgrs, Legal,
Models, etc.) for each of these transactions.

American National Can
ArchDiocese of Chicago
Chase
Eli Lilly
IBM
Owens
Packaged Ice
Pilkington
Polaroid
Quebecor
Rite Aid
Simon Properties
Springs Industries
Suiza Foods
Tyco
UC/CSU

Thanks for your help on this stuff.  If you haven't received a response
before you leave let me know if I can assist in the follow-up.

Terry
x30442


These are useful updates.  Please include Whalley, Lavorato, Parquet, Dietrich, Delainey, Kitchens, Haedicke, Sanders, Kirby, Sharp, Leff, Calger, Belden etc on future updates.  Thanks

From:	Jeff Dasovich on 07/18/2001 08:18 PM
Sent by:	Jeff Dasovich

To:	Richard Shapiro/NA/Enron@Enron, skean@enron.com, Susan J Mara/NA/Enron@ENRON, Harry Kingerski/Enron@EnronXGate, James D Steffes/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Susan M Landwehr/Enron@EnronXGate, mpalmer@enron.com, Karen Denne/Enron@EnronXGate, Janel Guerrero/Enron@EnronXGate, Paul Kaufman/Enron@EnronXGate

cc:

Subject:	California Update 07.18.01

The Senate, the Assembly and the Governor are either poised to engage in very difficult negotiations, or the three are about to crash and burn and Edison's going to be left dangling.

In the Senate:
The Senate bill 78XX is with about 90% likelihood going to be voted out of the Senate tonight---without a vote having taking place in any committee.
Burton announced during one of the two "informational" hearings that "this is it," despite the view of just about everyone who appeared before the committees the bill likely won't prevent Edison from going bankrupt.
The key features of the bill are:
Banks and QFs get paid in full.
Edison shareholders would be responsible for debts owed to suppliers
No direct access.
There are conflicting reports about whether the Senate will take up the bill tomorrow de-linking the bonds from the DWR contracts and whether the Republicans will go along with it.

In the Assembly:
The Committee is hearing the Wright and Hertzberg bills as we speak, with Hertzberg's the likely winner.
That bill now provides for Direct Access under certain conditions (the amendments describing the conditions were faxed today).
We're attempting to get the "July 12" date changed to "the effective date of the bill" or later.
The Assembly likely won't vote the Hertzberg bill out until tomorrow at the earliest.

The Problem:
The Assembly and Senate bills are diametrically opposed in the way each approaches the problem---in short, the bills are two ships passing in the night.
The Democratic leaders (Governor, Hertzberg, Burton) aren't talking, and Burton hasn't expressed any interest in talking---to anybody.

The likely outcome given the circumstances:
Burton says he's done what he needs to do (i.e., passed out a "fair" bill); the Assembly and Senate can't agree; they finish the budget; time runs out; they leave Friday; and Edison's left twisting.

That said, there's still a chance that the Governor could call Burton and sit down with Burton and Hertzberg and work something out by Friday, or begin talking and postpone the recess until they get it worked out.  But given Burton, the chance of that happening seems very slim.

In short, little has changed since yesterday.

Best,
Jeff


Here are some pics of my new son, Mckennan Harris Carson, 8lbs 7oz, born on
10/19/00.

>

 - Dcp00850.jpg
 - Dcp00852.jpg
 - Dcp00853.jpg


---------------------- Forwarded by Daren J Farmer/HOU/ECT on 12/14/2000
10:52 AM ---------------------------

Daren J Farmer
12/14/2000 10:51 AM
To: Mary Poorman/NA/Enron@ENRON, Aimee Lannou/HOU/ECT@ECT, Jackie
Young/HOU/ECT@ECT, Mark McCoy/Corp/Enron@Enron, Liz Bellamy/NA/Enron@Enron
cc:
Subject: Re: cannon assignment

I moved the Cannon sale volumes from #170335 to #529753 effective 12/14/00.
You will need to re-nom #529753 for all prior days at zero and then allocate
volumes at each meter from the old deal to the new deal.  Let me know if you
have any questions.

D

Mary Poorman@ENRON
12/14/2000 07:28 AM
To: Daren J Farmer/HOU/ECT@ECT
cc:
Subject: Re: cannon assignment

Daren,

Should I change the counterparty on this sale, or is that handled by
marketing?  Also, we may need to look at changing the Storage Agmt.   Please
advise.

Mary
---------------------- Forwarded by Mary Poorman/NA/Enron on 12/14/2000 07:26
AM ---------------------------

Julie Meyers@ECT
12/13/2000 05:12 PM
To: Mary Poorman/NA/Enron@Enron, Jackie Young/HOU/ECT@ECT, Aimee
Lannou/HOU/ECT@ECT
cc:

Subject: Re: cannon assignment

Has the volumes for the deal below been nomd' yet under the new deal.  Credit
is having a cow because they are showing exposure still under Cannon.  Is
there a way that we can get this done tomorrow?

Julie

---------------------- Forwarded by Julie Meyers/HOU/ECT on 12/13/2000 05:05
PM ---------------------------

Julie Meyers
12/12/2000 05:03 PM
To: Mary Poorman/NA/Enron@Enron, Jackie Young/HOU/ECT@ECT, Aimee
Lannou/HOU/ECT@ECT
cc:
Subject: Re: cannon assignment

---------------------- Forwarded by Julie Meyers/HOU/ECT on 12/12/2000 04:58
PM ---------------------------

	Enron North America Corp.

	From:  Robert Cotten                           12/12/2000 03:29 PM

To: Julie Meyers/HOU/ECT@ECT
cc:
Subject: Re: cannon assignment

Julie,

Cannon is not a wellhead producer.  The meters below are assigned to the
following individuals:

Meter #  Scheduler

68  Mary Poorman
4132  Jackie Young
1040  Aimee Lannou
1606  Mary Poorman

These schedulers should be advised of the changes.

Bob

Julie Meyers
12/12/2000 01:49 PM
To: Brant Reves/HOU/ECT@ECT
cc: Robert Cotten/HOU/ECT@ECT, Kristen J Hanson/HOU/ECT@ECT
Subject: Re: cannon assignment

New deal 529753.

Robert, please do your magic.

Kris, I'm not sure who in your group this should go to, this is a sale.

Julie

Brant Reves
12/11/2000 12:24 PM
To: Julie Meyers/HOU/ECT@ECT
cc:
Subject: cannon assignment

The trades below were originally executed between HPL and Cannon Interests
Houston per terms of a specific Master Physical Agreement.  After recieving
back executed documentation, we are ready to have the trades offically moved
within the various Enron capuring systems from Cannon to Kinder Morgan Texas
Pipeline, Inc. per the terms and conditions of the recently executed Master
Physical Agreement between HPL and Kinder Morgan Texas Pipeline, Inc.

First, here are the TAG Nos. of the trades we wish to have assigned.

NU2813
NA0376

Second, several trades are listed within a ERMS book called:  P A M
These trades show a 12-31-00 expiry and their Nos. are:

522284
830689
892696
904035
904276

I am not sure what these numbers are.  But, could you move them as well.

Thanks for your help.

brant


The attached reflects MTM as of 1/10. We need to review all in the money positions to determine if there are any not being served.
 -----Original Message-----
From: 	Hiemstra, Nick
Sent:	Monday, January 14, 2002 12:03 PM
To:	Baughman, Edward
Subject:	West Contracts

Here are the most recent valuations:


It's a smart way to finance tuition, remodel your home, take a vacation, or whatever you choose. The interest may even be tax deductible!

http://www.eloangroup.com

<<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>>
* To remove yourself from this mailing list, point your browser to:
http://i.pm0.net/remove?funnymoney:10
* Enter your email address (alewis@ect.enron.com) in the field
provided and click "Unsubscribe". The mailing list ID is "funnymoney:10".

OR...

* Reply to this message with the word "remove" in the subject line.

This message was sent to address alewis@ect.enron.com
X-PMG-Recipient: alewis@ect.enron.com
<<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>>

pmguid:1c.1avz.c796m


GOOD STUFF!!!!


Shona,

Could you or someone in your group provide us with a summary of the last
month's issues? It would be helpful to see trends in order to to track
improvements. and to get an overall feel for where we should focus our
efforts.

If you agree, let's just plan to have the summary for next week's meeting
with Rick and Sally.

Thanks,

Debbie

	Enron North America Corp.

	From:  Shona Wilson @ ENRON                           12/07/2000 11:28 AM

To: Sally Beck/HOU/ECT@ECT, Rick Buy/HOU/ECT@ECT, Debbie R
Brackett/HOU/ECT@ECT, Stephen Stock/HOU/ECT@ECT, Chris Abel/HOU/ECT@ECT,
David Port/Market Risk/Corp/Enron@ENRON, David Hardy/LON/ECT@ECT, James
New/LON/ECT@ECT
cc:
Subject: weekly log

Now that we have moved away from the daily problems to fixing procedures and
processes, I am no longer summarizing weekly info, but will continue to track
the daily problems and send these to you daily.  Let me know if you ever need
a summary and I will prepare one for you.

Thanks

Shona


some of these are pretty funny.


Stinson/Vince,

I think this is important to know.

Regards,
Sandeep.
---------------------- Forwarded by Sandeep Kohli/ENRON_DEVELOPMENT on
03/28/2001 08:23 AM ---------------------------

	Anshuman Srivastav

	03/28/2001 06:32:20 AM

To: Marc De La Roche@ECT
cc: Tushar Dhruv@Enron, Doug Leach@ECT, Mohan
Gurunath/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rajesh
Sivaraman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Shubh
Shrivastava/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mukesh
Tyagi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT (bcc: Sandeep
Kohli/ENRON_DEVELOPMENT)

Subject: Hedging LNG Volumes

Hi Marc,

DPC would like a swap to hedge its price expsoure on LNG. We do understand
that there exists a basis risk between JCC (the LNG SPA index) and Brent (the
market index for the product) and will bear such risk. We also appreciate the
fact that this is a financial product and irrespective of actual consumption,
we will still have to bear the burden (if any) of the swap.

Fuel - LNG indexed to JCC (closely correlated to Brent Futures)

   Period     Volumes (TBtu)  Volumes(MT)  Volumes(JCC Bbls)
  January 2002 to December 2002    33.61          650,000     9,127,049
  January 2003 to December 2003    48.63          940,000   13,207,496
  January 2004 to December 2004    48.63          940,000   13,207,496

Crude Swap Price: Can we look at a 'dirty' hedge and get a crude($/Bbl) swap
price. Like any other regular swap, this will be a monthly settle product.

The above conversions from MT to Bbls are based on LNG conversion factors.
(14.04 Bbls/MT).

We also would like to understand the requirements of the Credit Group to put
this hedge in place. Please indicate the process as well as the security
mechanisms to provide adequate credit support for the swap.

Please call me(98210 38711) or Rajesh (98201 88310) for any additional info.

Regards,
Anshuman


Enron Gov't Affairs provided this report on the Energy and Natural Resources
hearing on Natural Gas markets held this morning.  Please note the suggestion
that we provide a list of any specific items that we would like to see added
to energy policy legislation:

Witnesses from the Energy Information Administration, American Gas
Association, Natural Gas Supply Association and National Association of State
Energy Officials (NASEO) each testified that gas prices are high because
demand is greater than supply.
Basically, the hearing provided an opportunity for Western State Senators to
complain about policies that restrict E&P activity - especially on federal
lands.  Sen. Murkowski will probably introduce a supply oriented bill in the
next Congress.
The bottom line is that a number of Senators are deploring the lack of a
National Energy Policy and seem intent on doing something to rectify such
omission.
One specific area of interest of Senator Bingaman seemed to be the need to
create incentives to encourage pipleine investment.  He seemed especially
interested in the need for long term contracts to back development
Given that there may be interest to pass Energy Policy legislation, it may be
worthwhile to put together a wish list of items that affect our bottom line,
such as accelerated depreciation provisions, tax credits, etc.


Return-path: <Awenda2000@cs.com>
From: Awenda2000@cs.com
Full-name: Awenda2000
Message-ID: <75.d062b85.275d329b@cs.com>
Date: Mon, 4 Dec 2000 12:47:07 EST
Subject: our conversation today
To: wkamins@enron.com
MIME-Version: 1.0
Content-Type: multipart/mixed; boundary="part2_12.59ad86b.275d329b_boundary"
X-Mailer: Unknown sub 111

Hi Wincenty,
It was a pleasure talking to you today. I am enclosing my resume and look
forward to talking to you again.
Best regards
Bibianna

 - BIBIANNA  res.#2.doc