Hello everyone,

Here are some updates since our meeting and some follow through points:

1. Today I received access to lotus notes and instructions on how to use it
for the purpose of tracking our agreements.  this should greatly improve the
efficiency of our work on this project.

2. I received confirmation that on Monday that we should have final drafts of
the Raymond James and Robertson Stephens Brokerage Agreements ready for
signatures.  Sam is preparing the accompanying documents for R/J.  Stephanie,
can you prepare those for R/S?  R/S is a high priority agreement.  Thank you.

3.  This morning we finally received comments from Jefferies & Co.  I will
review them on Monday.

4.  Psytech Analytics, an added high priority agreement, was sent to Sheila
Glover for final execution.

5. I got written confirmation that ING Barings was executed, from their
perspective.

******To update our status memo, let me know if anyone else has any other
updates they would like for me to add.  As per our discussion at the meeting,
I will draft the checklist memo to the folks downstairs this afternoon and
distribute it to you guys to see if there is anything you want to add.

Cheryl Nelson
Senior Counsel
EB3880D
(713) 345-4693


If you cannot read this email, please click here .

Earnings.com - EOG Earnings Detail
Earnings.com 	[IMAGE]
	  EOG Resources Inc(EOG)              [IMAGE] View Today's Earnings Announcements        Earnings Date Upcoming Announcement October 24, 2001  BEFORE MARKET    Add This Event To My Calendar    Upcoming Conference Call October 24, 2001 10:00AM [IMAGE]  Add This Event To My Calendar  Last Conference Call April 23, 2001 10:30AM Click To Listen       Last Earnings Headline    July 30, 2001 7:19 PM - EOG Resources Reports Second Quarter 2001 Results- 6.1 percent increase in North American production - Net income available to common of $133.4 million or $1.13 per share - Continuing current share repurchase program  - PR NEWSWIRE  Note: All times are Eastern Standard Time (EST)     Consensus EPS Estimate This Qtr Jun 2001 Next Qtr Sep 2001 This Fiscal Year Dec 2001 Next Fiscal Year Dec 2002 Avg Estimatem (mean) $0.93 $0.81 $4.19 $2.82 # of Estimates 20 19 24 21 Low Estimate $0.62 $0.52 $3.05 $1.41 High Estimate $1.09 $1.28 $5.70 $5.50 Year Ago EPS $0.63 $0.95 $3.24 $4.19 EPS Growth 47.22% -15.07% 29.39% -32.78%    Quarterly Earnings Mar 2001 Dec 2000 Sep 2000 Jun 2000 Mar 2000 Estimate EPS $1.60 $1.13 $0.74 $0.54 $0.23 Actual EPS $1.79 $1.33 $0.95 $0.63 $0.33 Difference $0.19 $0.20 $0.21 $0.09 $0.10 % Surprise 11.87% 17.70% 28.38% 16.67% 43.48%    Earnings Growth Last 5 Years This Fiscal Year Next Fiscal Year Ave Est Next 5 Years P/E (FY 2001) PEG Ratio EOG Industry Rank: 36 of 70 29.30% 29.39% -32.78% 18.12% 8.78 0.48 INDUSTRY  OIL-US EXP&PRO 32.20% 22.10% -9.60% 18.90% 12.42 0.45 SECTOR OILS/ENERGY          6.40% 145.39% 24.03% 19.10% 14.76 1.24 S&P 500 8.40% -4.20% 14.60% 17.00% 22.15 1.31    Long-term Growth Avg Est High Est Low Est Estimates EOG  18.12%  30.00%  9.00%  5      Covering Analysts:   View History     A.G. Edwards   Banc of America   Bear Stearns   CIBC World Markets   CSFB   Chase H&Q   Credit Lyonnais   Dain Rauscher Wessels   Deutsche Bank   First Albany   Freidman, Billings   Gerard Klauer Mattison   Howard, Wiel   Jeffries and Company   Johnson Rice   Lehman Brothers   Merrill Lynch   Morgan Stanley, DW   Pershing   Raymond James   Salomon Smith Barney   Sanders Morris Mundy   Simmons & Co.   Southcoast Capital   Stifel Nicolaus   Warburg Dillon Reed    Zacks All research data provided by  Zacks Investment Research.    Net EarningsEarnings data provided by  Net Earnings Corporation , the leading provider of future financial information and calendars.

? 1999-2001 Earnings.com, Inc., All rights reserved about us  | contact us  |  webmaster  | site map  privacy policy  | terms of service


Thanks.

DG

	From:  Jason Wolfe @ ENRON                           01/16/2001 04:20 PM

To: Darron C Giron/HOU/ECT@ECT
cc:
Subject: Re: Monthly Natural Gas P & L Request

I forwarded this to Carole to take care of Northwest as she was running it
Nov and Dec.
I also sent off the Mgmt-West P&L

Jason


Attached please find the talking points on DPC to support your efforts in
Washington, D.C.


Hi Mr. Lewis -

Ken asked me to send you an e-mail stating that he would be happy to submit
your name for consideration to Dick Cheney.  He asked if you would please
send him a current bio.

Thanks.

Rosalee

<Bill_Lewis@mckinsey.com> on 11/28/2000 03:43:58 PM
To: Kenneth.lay@enron.com
cc:
Subject: New Administration

Ken,

Sorry to miss you today when I called. Since I am leaving for India in a
few minutes, I thought I would sent you an E-mail, and then I can try to
call you from India. Because of the time difference, it will not be easy
for us to connect. Unfortunately I will not be back in the US until
December 7.

The reason for my call was to see if you would feel comfortable putting my
name forward to Dick Cheney for a position in the new administration. I am
not sure where the best fit would be, but it might be Chairman of the
National Economic Council. That job has a good combination of management
and economics. You know I have only been associated with Democratic
administrations in past, but Democratic administrations were a little
different in those days. You are somewhat familiar with my record on
economics and there is a lot on that in the public domain.

Just let me know what you think. Maybe a quick E-mail would suffice ( I am
carrying my computer).

Best regards,
Bill

+-------------------------------------------------------------+
| This message may contain confidential and/or privileged     |
| information.  If you are not the addressee or authorized to |
| receive this for the addressee, you must not use, copy,     |
| disclose or take any action based on this message or any    |
| information herein.  If you have received this message in   |
| error, please advise the sender immediately by reply e-mail |
| and delete this message.  Thank you for your cooperation.   |
+-------------------------------------------------------------+


I just though you would be interested in knowing that the UT game that you
are going to will be at 6 pm.

http://www.texassports.com/fbo/fbc/2000schedule.html


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  ? 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Crude     http://www.carrfut.com/research/Energy1/crude44.pdf
Natural Gas     http://www.carrfut.com/research/Energy1/ngas44.pdf
Distillate     http://www.carrfut.com/research/Energy1/hoil44.pdf
Unleaded     http://www.carrfut.com/research/Energy1/unlded44.pdf

Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG44.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG44.pdf

Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL44.pdf

Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606  USA
Tel:  312-368-6149
Fax:  312-368-2281
soblander@carrfut.com
http://www.carrfut.com


continental.com Specials for Susan Scott
Wednesday, February 20, 2002
****************************************

EARN UP TO 11,000 BONUS MILES WITH AT&T/ONEPASS REFER-A-FRIEND.*

Enroll in the AT&T/OnePass program and earn up to 11,000 bonus miles through the AT&T/OnePass Refer-a-Friend Promotion.

Learn more about this offer and enroll today:

http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VS

*Terms and conditions apply. Offer ends February 28, 2002.

****************************************
TABLE OF CONTENTS
1. This Week's Destinations
2. Hilton Hotels & Resorts, Doubletree Hotels & Resorts, & Embassy Suites Hotels Offers
3. Westin Hotels & Resorts, Sheraton Hotels & Resorts, Four Points by Sheraton, St. Regis, The Luxury Collection and W Hotels Offers
4. Alamo Rent A Car Offers
5. National Car Rental Offers

****************************************
1. THIS WEEK'S DESTINATIONS

Depart Saturday, February 23 and return on either Monday, February 25 or Tuesday, February 26, 2002. Please see the Terms and Conditions listed at the end of this e-mail.

Purchase continental.com Specials online until 11:59pm (CST) Friday at
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VT
You can also purchase continental.com Specials for an additional cost of $20 per ticket through our telephone service at 1-800-642-1617.

**********************************************
ROUND-TRIP TRAVEL MAY ORIGINATE IN EITHER CITY
**********************************************
****Roundtrip BETWEEN CLEVELAND, OH and:

$109 - Charleston, WV
$109 - Dayton, OH
$109 - Harrisburg, PA
$109 - Indianapolis, IN
$109 - Lexington, KY
$109 - Nashville, TN
$109 - Norfolk, VA

****Roundtrip BETWEEN HOUSTON, TX and:

$109 - Austin, TX
$129 - Greenville/Spartanburg, SC
$129 - Huntsville/Decatur, AL
$129 - Lexington, KY
$129 - Wichita, KS

****Roundtrip BETWEEN NEW YORK/NEWARK and:

$129 - Birmingham, AL
$119 - Charleston, SC
$119 - Greenville/Spartanburg, SC
$119 - Louisville, KY
$119 - Milwaukee, WI
$109 - Pittsburgh, PA

********************************
2. CONTINENTAL.COM SPECIALS FROM HILTON HOTELS AND RESORTS, DOUBLETREE
HOTELS AND RESORTS, AND EMBASSY SUITES HOTELS

The following rates are available February 23 - February 25, 2002 and are priced per night.
--------------------------------------
Alabama - Huntsville - Hilton Huntsville - $79

New Jersey - Newark - Hilton Woodcliff Lake - $119

Ohio - Cleveland - Hilton Garden Inn Cleveland Airport - $79
Ohio - Cleveland - Embassy Suites Hotel Cleveland-Downtown - $139
Ohio - Cleveland - Embassy Suites Hotel Cleveland-Independence - $95

Texas - Austin - Hilton Austin North - $99
Texas - Austin - Doubletree Hotel Austin - $99
Texas - Houston - Hilton Houston Hobby Airport - $109

To book this week's special rates for Hilton Family Hotels, visit and book at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VU
Special rates apply only for the dates listed at each hotel and are subject to availability. Check hilton.com for specific dates at each Hilton Family Hotel. Or call at 1-800-774-1500 and ask for Value Rates. Restrictions apply to these rates.

****************************************
3. CONTINENTAL.COM SPECIALS LAST-MINUTE WEEKEND RATES FROM WESTIN HOTELS & RESORTS, SHERATON HOTELS & RESORTS, FOUR POINTS BY SHERATON, ST. REGIS, THE LUXURY COLLECTION, AND W HOTELS

Last-Minute Weekend Rates for this weekend February 22 - February 26, 2002.
--------------------------------------
There are no offerings from Westin Hotels & Resorts, Sheraton Hotels & Resorts, Four Points by Sheraton, St. Regis, The Luxury Collection and W Hotels this week.

********************************
4. CONTINENTAL.COM SPECIALS FROM ALAMO RENT A CAR

Rates listed below are valid on compact class vehicles at airport locations only. Other car types may be available. Rates are valid for rentals on Saturday, February 23 with returns Monday, February 25 or Tuesday, February 26, 2002.
-------------------------------
$20 a day in:  Austin, TX (AUS)
$20 a day in:  Birmingham, AL (BHM)
$18 a day in:  Nashville, TN (BNA)
$20 a day in:  Charleston, SC (CHS)
$20 a day in:  Cleveland, OH (CLE)
$26 a day in:  Newark, NJ (EWR)
$18 a day in:  Houston, TX (IAH)
$20 a day in:  Indianapolis, IN (IND)
$18 a day in:  Harrisburg, PA (MDT)
$18 a day in:  Milwaukee, WI (MKE)
$19 a day in:  Pittsburgh, PA (PIT)

To receive continental.com Specials discounted rates, simply make advance reservations and be sure to request ID # 596871 and Rate Code 33. Book your reservation online at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VW
or contact Alamo at 1-800 GO ALAMO.

*If you are traveling to a city or a different date that is not listed, Alamo offers great rates when you book online at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VY
For complete details on these offers, please refer to Alamo's terms and conditions below.

****************************************
5. CONTINENTAL.COM SPECIALS FROM NATIONAL CAR RENTAL

Rates listed below are valid on intermediate class vehicles at airport locations only. Other car types may be available. Rates are valid for rentals on Saturday, February 23 with returns Monday, February 25 or Tuesday, February 26, 2002.
------------------------------------------
$23 a day in:  Austin, TX (AUS)
$23 a day in:  Birmingham, AL (BHM)
$21 a day in:  Nashville, TN (BNA)
$23 a day in:  Charleston, SC (CHS)
$23 a day in:  Cleveland, OH (CLE)
$21 a day in:  Dayton, OH (DAY)
$29 a day in:  Newark, NJ (EWR)
$23 a day in:  Greenville/Spartanburg, SC (GSP)
$21 a day in:  Huntsville/Decatur, AL (HSV)
$21 a day in:  Houston, TX (IAH)
$26 a day in:  Indianapolis, IN (IND)
$23 a day in:  Lexington, KY (LEX)
$24 a day in:  Milwaukee, WI (MKE)
$21 a day in:  Pittsburgh, PA (PIT)
$23 a day in:  Louisville, KY (SDF)

To receive continental.com Specials discounted rates, simply make your reservations in advance and be sure to request Product Code COOLUS. To make your reservation, contact National at 1-800-CAR-RENT (1-800-227-7368), or book your reservation online at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VA
Please enter COOLUS in the Product Rate Code field, and 5037126 in the Contract ID field to ensure you get these rates on these dates.

* If you are traveling to a city or a different date that is not listed, National offers great rates when you book online at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VB
For complete details on these offers, please refer to National's terms and conditions below.

****************************************
CONTINENTAL.COM SPECIALS RULES:
Fares include an $18.60 fuel surcharge. The September 11th Security Fee of up to $10 depending on routing, is not included. Passenger Facility Charges, up to $18 depending on routing, are not included. Up to $3 per segment federal excise tax, as applicable, is not included. Applicable International and or Canadian taxes and fees up to $108, varying by destination, are not included and may vary slightly depending on currency exchange rate at the time of purchase. For a complete listing of rules please visit:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VC

ALAMO RENT A CAR'S TERMS AND CONDITIONS:
Taxes (including VLF taxes up to US$1.89 per day in California and GST), other governmentally-authorized or imposed surcharges, license recoupment fees, fuel, additional driver fee, drop charges and optional items (such as CDW Waiver Savers(R) up to US$18.99 a day,) are extra. Renter must meet standard age, driver and credit requirements. Rates higher for drivers under age 25. Concession recoupment fees may add up to 14% to the rental rate at some on-airport locations. Up to 10.75% may be added to the rental rate if you rent at an off-airport location and exit on our shuttle bus. Weekly rates require a 5-day minimum rental or daily rates apply. For weekend rates, the vehicle must be picked up after 9 a.m. on Thursday and returned before midnight on Monday or higher daily rates apply. 24-hour advance reservation required. May not be combined with other discounts. Availability is limited. All vehicles must be returned to the country of origin. Offer not valid in San Jose, CA.

NATIONAL CAR RENTAL TERMS AND CONDITIONS:
Customer must provide Contract ID# at the time of reservation to be eligible for discounts. Offer valid at participating National locations in the US and Canada. Minimum rental age is 25. This offer is not valid with any other special discount or promotion. Standard rental qualifications apply. Subject to availability and blackout dates. Advance reservations required. Geographic driving restrictions may apply.

TERMS AND CONDITIONS FOR WESTIN, SHERATON, FOUR POINTS,
ST. REGIS, THE LUXURY COLLECTION, AND W HOTELS:
Offer is subject to availability. Advance Reservations required and is based on single/double occupancy. Offer not applicable to group travel. Additional Service charge and tax may apply. The discount is reflected in the rate quoted. Offer valid at participating hotel only. Offer valid for stays on Fri - Mon with a Friday or Saturday night arrival required. Rate available for this coming weekend only. Offer available only by making reservations via the internet. A limited number of rooms may be available at these rates.

---------------------------------------
This e-mail message and its contents are copyrighted and are proprietary products of Continental Airlines, Inc. Any unauthorized use, reproduction, or transfer of the message or its content, in any medium, is strictly prohibited.

****************************************
If you need assistance, please visit:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VD
View our privacy policy at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VSR

This e-mail was sent to: sscott5@enron.com
To modify your continental.com Specials profile, please visit:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VSSVuLuILjpKVSUCYDSUC

TO UNSUBSCRIBE:
We hope you will find continental.com Specials a valuable source of information. However, if you prefer not to take advantage of this opportunity, please let us know by visiting the continental.com Specials page on our web site at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VSU

TO SUBSCRIBE:
Please visit the continental.com Specials page on our web site at:
http://continentalairlines.rsc01.net/servlet/cc5?JHQTSSVkkJhllYxLgjhgQJhuV2VST


Please increase deliveries into Eastrans to 25,000 MMBtu/dy effective
9/25/01 and continue until further notified.

The redeliveries will be:

7300 MMBtu from Fuels Cotton Valley
17,700 MMBtu to PG&E


Dear Power Outage Database Customer,
Attached you will find an excel document. The outages contained within are forced or rescheduled outages. Your daily delivery will still contain these outages.
In addition to the two excel documents, there is a dbf file that is formatted like your daily deliveries you receive nightly. This will enable you to load the data into your regular database. Any questions please let me know. Thanks.
Greg Elliott
IIR, Inc.
713-783-5147 x 3481
outages@industrialinfo.com
THE INFORMATION CONTAINED IN THIS E-MAIL IS LEGALLY PRIVILEGED AND CONFIDENTIAL INFORMATION INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY NAMED ABOVE.  YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION, OR COPY OF THIS E-MAIL TO UNAUTHORIZED ENTITIES IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS E-MAIL IN ERROR, PLEASE DELETE IT.
 - OUTAGE.dbf
 - 012102R.xls
 - 012102.xls


Please be advised that MAC will not cross-examine any party.

Traci Grundon Kirkpatrick, Attorney for MAC

JAN E. BROOKER
DAVIS WRIGHT TREMAINE, LLP
1300 SW FIFTH AVENUE, SUITE 2300
PORTLAND, OR 97201
503.778.5263
FAX:  503.778.5441


On May 8, 2001, in greater San Juan, Puerto Rico, a San Juan Metro bus
dropped into a hole that had been excavated by a work crew from San Juan Gas
Company. The hole had been excavated by a San Juan Gas crew (or contract
labor) under the supervision of a San Juan Gas operations supervisor as part
of the project in which new plastic gas pipe and fiber optic conduit were
being inserted into a portion of the existing San Juan Gas distribution
system.

At the request of Risk Management, the Litigation Unit engaged local counsel
and a local investigator for the purpose of obtaining the details of the
incident. Initial reports indicate that at approximately 5:00 pm on May 8,
the rear wheels of a Metro bus dropped into the excavation described above.
The bus was traveling in a contra-flow bus lane and apparently struck and
damaged three private vehicles as a result of the incident.

The incident also caused personal injury to the bus driver, some passengers
and others. The bus driver and two passengers were taken to the hospital, but
do not appear to be seriously injured. The driver complained of being
overcome by the fumes of the diesel fuel that was spilled from the fuel tank
of the bus. An elderly male passenger was thrown form his seat and may have
injured his ribs. A 9 year old girl received a contusion to her forehead.
Additionally, approximately 20 other individuals claimed to have been
passengers on the bus and complained to the police of injuries. None required
immediate hospital treatment.

The facts obtained to date, indicate that the hole was excavated by the San
Juan Gas crew (as part of the insertion program mentioned above) in the bus
lane as allowed by permit on April 30, 2001. The hole was not filled on that
date, but was left with a large, heavy steel plate over it so that further
work could be done. Between April 30 and May 8, the hole remained unfilled
with the steel plate covering it and some further work may have been
undertaken. The hole was filled in shortly after the incident.

In light of the facts that have been obtained, it is the view of Risk
Management that the incident is a covered event and is, therefore, an insured
matter. They wish to proceed immediately to address the personal injury and
property claims in an effort to obtain an efficient resolution of such claims
before suits are brought and the cost of litigation is incurred. Based on the
facts of this incident and our litigation experience in San Juan, the
Litigation Unit concurs with the desire of Risk Management to seek an
expedited resolution of the claims that will arise out of this incident.

Risk Management has made arrangements with a local claims adjuster, in
conjunction with our local counsel, to undertake the task of resolving the
claims. Since the goal is to resolve the claims before litigation, Risk
Management is prepared to initiate the process on Monday, May 21, and will do
so, unless an objection is received. If you have an objection or wish to have
further information, simply respond to this email.

Thank you for your attention to this matter.


To remind me to discuss this with you when you get in:

We received via our fax notices from the OMLX a request to provide them with
information about our Y2K readiness.  When you have a minute let's look at
the form together.  Probably Alan will have the answers.


Tana,

It appears that the Exodus NDA was done out of the Portland office and we
don't have access to their directories.  It does look like our form, so you
can probably use it as your starting point.

We, at EBS, are sorry for this inconvenience.

Marie

Marie Heard
Senior Legal Specialist
Enron Broadband Services
Phone:  (713) 853-3907
Fax:  (713) 646-8537
Marie_Heard@Enron.net


damn!  you got a 112?  did you answer yes to the animal sex question?  i
scored lower than you.  i scored a 96.  my mother would be proud.  i am just
an angel.    you should move to the french riviera.  i think i am going to do
something similar.  i need to go anna nicole and marry a rich old woman and
move to the carribean.  i think i could quit work and become some old blue
hair's boy toy.  i would only be a couple of years.  i would probably be able
to get a girlfriend on the side who is more my age.  all i would really have
to do is get on a different sleeping schedule than her and i could totally
avoid her.  fuck working.  i don't want to use my mind.  i think that is what
i am going to work on this weekend.  i can go volunteer at some old person
place and find a honey.  sounds like a plan.  talk to you later.


Again, let me know if there are any questions.

Thank you
Amy
ext 39741


Tana -

Here is the Dow information.   If you cannot access the document as attached
to this e-mail, see if you can find the e-mail from Mr. Guarino as you appear
to be copied on it.

Mark
Senior Counsel, EWS
Phone:     713-345-8897
Facsimile: 713-646-3490
E-Mail:      Mark.Greenberg@enron.com
----- Forwarded by Mark Greenberg/NA/Enron on 04/27/2001 05:15 PM -----

	"Guarino, Carlo (C)" <cguarino@dow.com>
	04/27/2001 01:54 PM

		 To: "Pavetto, John" <John.Pavetto@ENRON.com>, "'Allario, John'"
<John.Allario@ENRON.com>
		 cc: "Jones, Tana" <Tana.Jones@ENRON.com>, "'mark.greenberg@enron.com'"
<mark.greenberg@enron.com>, "Mason, James (JL)" <masonj@dow.com>, "Isley,
Kenneth (KD)" <kdisley@dow.com>, "Ruiz, Fernando (F)" <fruiz@dow.com>,
"Kalil, Charles (CJ)" <CJKALIL@dow.com>
		 Subject: RE: Non-disclosure Agreement

John, I have sent you back our suggested changes to the NDA. If you agree,
then please send it back as final and we'll get it signed. As you can tell,
we removed section 5 since in the spirit of co-operation, this seems
inappropriate and a very unlikely circumstance.

Best Regards,

Carlo
Carlo Guarino
Global Development Director
Dow Growth Center

Office  (989) 636-0860 / Mobile (313)655-7553
Fax      (989) 636-1453
Internet address: CGuarino@dow.com

-----Original Message-----
From: Allario, John [mailto:John.Allario@ENRON.com]
Sent: Friday, April 27, 2001 1:09 PM
To: Carlo Guarino (E-mail)
Cc: Pavetto, John; Jones, Tana
Subject: Non-disclosure Agreement

Carlo,

John Pavetto mentioned to me you and your team are presently reviewing
and proposing a few changes to our Non-disclosure Agreement.   You may
contact either Tana Jones (Legal Specialist) or Mark Greenberg
(Attorney) directly in order to address your comments or changes.
Please feel free to contact me also for any questions, comments or
scheduling.

Tana Jones - 713-853-3399
Mark Greenberg - 713-345-8897
John Allario - 713-853-4587

Best regards,

John Allario

 - DowNetWorks.doc


All -

Please find the attached presentation regarding Project Hurricane current
status,

Steve Jernigan


Matched TRCO bid.  I was bid #5 !!!


Randy:
Here is the latest version of the "work-in-progress" pitch book.  Please make
comments and send back.  I will contnue to add to it, so please fell free to
give me a call about the presentation.  Thanks
Ben Rogers


Dear john,

Good news !

Your order # WB-000207391 has been shipped.

SKU#       Quantity     Item Description               Total
ESWFF10E      1          Epson Software Film Factory v1.03, Windows Keycode          $29.95

          Subtotal:       $29.95
          Sales Tax:      $0.00
          Shipping:       $0.00

          Total:          $29.95

$29.95 will be charged to your credit card for these items.

If your order was shipped via UPS or Federal Express,
you can track the progress of your shipment by
clicking on the following link:

If you have any questions, please reply to epsonstoreorders@ea.epson.com.
If you prefer, you can call us at 1-800-873-7766
between 6:00 a.m. and 6:00 p.m. Pacific Time, Monday through Friday.
Please be sure to reference your order number with any inquiries.

Thank you for choosing Epson products. We look forward to serving
you again in the near future.

Sincerely,

Customer Service
epsonstoreorders@ea.epson.com


Mark -- Mark Greenberg asked me to forward this to you for approval.  Please
review and let me know if there are any changes.

Kal
x 39354

To: Mark Greenberg/NA/Enron@ENRON, Justin Boyd/LON/ECT@ECT
cc: Amita Gosalia/LON/ECT@ECT
Subject: revised postcard for approval - disregard earlier version

We've had to make some changes to the postcard text I sent yesterday.  Please
approve this version instead.

Kal Shah
EnronOnline


Good Afternoon all!

Just a reminder that I will be in orientation on Monday, April 23rd.  Levon
Wilson at x39282, is my backup assistant.  There will be a temp at my desk,
should you have any administrative needs while I am away.  I will return to
the office on Tuesday, at my regular time.  Thank you for your attention to
this matter.

Regards,
Keegan
5-3317


<<Letter Agmt Enron Turbines Delta Power.DOC>>

Kay:

Attached is the execution draft of the ENA/PPL Letter Agreement.   Let me
know if you need anything else.  Thanks.

Carolyn M. Campbell
King & Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

                    Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

 - Letter Agmt Enron Turbines Delta Power.DOC


Start Date: 1/30/02; HourAhead hour: 6;  HourAhead schedule download failed. Manual intervention required.


Trey,

I will book this tonight.

Thanks,

Errol

From: Trey Hardy/ENRON@enronXgate on 05/02/2001 03:08 PM
To: Errol McLaughlin/Corp/Enron@ENRON
cc:

Subject: FW: Louis Dreyfus Corporation Credit Reserve

As a follow up to my voice mail, I wanted to forward this to you as well.

Thanks

Trey

 -----Original Message-----
From:  Williams, Jason R.
Sent: Wednesday, May 02, 2001 7:47 AM
To: Hardy, Trey
Cc: Buy, Rick; Bradford, William S.; Rohauer, Tanya; Quigley, Dutch; Dawson,
Sherry
Subject: Louis Dreyfus Corporation Credit Reserve

Please note the following addition to the ENA credit reserve:

Counterparty:    Louis Dreyfus Corporation
Deal Number: V67542.1
Originator:   Dutch Quigley
Date:    April 30, 2001
Amount:   $70,000

The reserve covers a NYMEX swap transaction where Enron bought fixed price @
$4.305/MMBTU.  The deal begins in January 2003 and runs through December
2005, with a volume of  6 contracts/month.

Please call me if you have any questions.

Jay Williams
Ext. 53923


here is the location of the file and the person that compiled the file,.  Please let me know if you need anything else, thanks.
PL

 -----Original Message-----
From: 	Ma, Felicia
Sent:	Monday, October 15, 2001 5:54 PM
To:	Love, Phillip M.
Cc:	Ma, Felicia
Subject:	File is ready - Chicago office listing

CPR does not have historical data before Oct. 2000. Please go to O:\_Dropbox\FMA to pick up the file. File name is "enovate.xls".

Felicia
 -----Original Message-----
From: 	Love, Phillip M.
Sent:	Monday, October 15, 2001 12:54 PM
To:	Ma, Felicia
Subject:	Chicago office listing

Kam Keiser suggested I call you to help with a request I received from our auditors.  Can you give me a list of all of the deals that have been put into Sitara for the Chicago office - the book/counterparty name will be Enovate.  The Arthur Anderson auditors have requested this information.  They are doing an audit of Enovate and want a list of all of the deals since the book started in order to get a sample size for their audit.  you should not have to go back farther than 01/00.  Thanks for your help and shout if you need anymore information.
PL


* IMMEDIATE ACTION REQUIRED - Do Not Delete *
Executive Impact & Influence Program

Dear Scott Neal,

As part of the Executive Impact and Influence Program,
each participant is asked to gather input on the
participant's own management styles and practices as
experienced by their immediate manager, each direct
report, and up to eight colleagues/peers.

You have been requested to provide feedback for a
participant attending the next program.  Your input
(i.e., a Self assessment, if you are a participant in
this program, Manager assessment, Direct Report
assessment, or Colleague/Peer assessment) will be
combined with the input of others and used by the
program participant to develop an action plan to
improve his/her management styles and practices.  If
you are providing feedback as a Manager of the
participant, please note that your feedback will be
identified in the summary report.

It is important that you complete this assessment NO
LATER THAN CLOSE OF BUSINESS on Tuesday, May 1, 2001.

To begin the online administration process, you will
need the following Internet address and Password(s).
NOTE:  If you are providing feedback for more than one
person, each password and participant name is
individually listed below.

Open your Internet browser e.g., Internet Explorer or
Netscape Navigator, and please type or copy the URL
address below into your Internet browser (please DO NOT
go through Lotus Notes):

www.fsddatasvc.com/enron

D99UHK    (Mark Breese)

If you experience technical problems, please call
Dennis Ward at FSD Data Services, 713-942-8436.  If you
have any questions about this process, you may contact
Debbie Nowak at Enron, 713-853-3304, or Christi Smith at
Leadership Research Institute/Keilty, Goldsmith & Company,
619-216-0404.

Thank you for your participation.


FYI.  Edison has been successful at peeling off one of the ESPs--New West.  Seems that in exchange for getting paid negative CTCs, New West may have agreed to take the position that all DA customers should be charged for Edison's undercollection. I'm not aware of any other ESPs that are willing to take that position.  The salient quote in New West's "supplemental" PHC statement reads:

"It is the position of New West Energy that all customers, both bundled service customers and direct access customers, are equally responsible for payment of the net undercollections.  Fairness dictates that bundled customers and direct access customers are both assessed their fair share of the responsibility for repaying the amount of the net undercollections as may be determined by the Commission."

Obviously, not a helpful statement.  New West's supplemental PHC statement is attached.

Best,
Jeff


Baby shower photo from last night.

---------------------- Forwarded by Chris Germany/HOU/ECT on 09/08/2000 08:16
AM ---------------------------

Trogg522@aol.com on 09/07/2000 09:10:37 PM
To: chris.germany@enron.com
cc:
Subject: Photo


Comments, suggestions on suggestion below from other committee members?
---------------------- Forwarded by Lisa Connolly/NA/Enron on 02/26/2001
09:34 AM ---------------------------

Eldorlaw@aol.com on 02/25/2001 05:44:52 PM
To: Lisa.Connolly@enron.com
cc:

Subject: Questions re interviewees

Lisa:

    I thought your questions were righ on the mark.  Would you also add a
question regarding how they would handle union negotiations for higher pay
and benefits in light of fiscal pressures?

Look forward to seeing you

Roel


WHAT IS THIS ALL ABOUT?  HAVE YOU SPOKEN WITH THIS GUY?   Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 05/26/2000 03:08 PM -----

	Tim McKone@ENRON
	05/26/2000 02:48 PM

		 To: Mark Taylor/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Shari
Stack/HOU/ECT@ECT
		 cc:
		 Subject: Re: Executed Master Agreements

Hello my Esteemed Doctors,

I am in Rodney Malcolm's Commercial Transaction Group focusing on selling
energy outsourcing relationships to industrial consumers.
Based on the list of executed master agreements that was provided to us
recently, many of our targeted industrial customers have not signed our
master swap agreement.

In preparation for our transacting with these customers, would you send me as
soon as possible a copy of our Master Swap Agreement language, a copy of the
more intermediate "Omnibus" Short form Swap agreement, and a copy of the one
or two page confirmation agreement.  I will forward to my group so that they
can become more familiar with the language, and I will also accumulate the
industrial customers that we are closest to closing deals.  I will then
forward the names of those customers to you so that we can get these
documents to the customers in advance of the deals.

If you have any questions or comments, please call me at x35583.  Thank you,
Tim
---------------------- Forwarded by Tim McKone/Corp/Enron on 05/26/2000 02:26
PM ---------------------------

Bob Carter@ECT
05/26/2000 11:15 AM
To: Tim McKone/Corp/Enron@ENRON
cc:

Subject: Re: Executed Master Agreements

We have a separate group in legal that puts these together.  Ed and I are not
involved in the preparation or negotiation of swap agreements.  The group  in
legal that works on them is led by Mark Taylor (x37459).  Others in the group
are Carol St. Clair (x33989), Sara Shackleton (x35620) and Shari Stack
(x39477).  I suggest that you contact any one of those people.  If I can
assist, please let me know.

	Tim McKone@ENRON
	05/26/2000 11:07 AM

		 To: Bob Carter/HOU/ECT@ECT, Ed B Hearn III/HOU/ECT@ECT
		 cc: Rodney Malcolm, James A Ajello/HOU/ECT@ECT
		 Subject: Re: Executed Master Agreements

Hello Bob and Ed.

What is the most efficient way for us to get Master Swap Agreements in place
with our industrial consumers.  With the commodity energy market going
through the roof, many of the industrials are asking us to concentrate on
solving their short term commodity exposure and look to establish a  greater
outsourcing opportunity in the future.  We do not seem to have Master Swap
Agreements in place with industrials such as IMC Global, AK Steel, WR Grace,
and our solutions will involve financial swaps.

Thank you. Tim


Thanks, chica.


"Robb, Kathy" <KRobb@hunton.com> writes to the NYISO_TECH_EXCHANGE Discussion List:

Here is the presentation from the PSC for Monday's ICAP Working Group
meeting. I am told that either Mark Reeder or Steve Keller will be making
it.

 - ICAP presentation outline.doc


Jim,

	WSCC is voting on the formation of the WECC which will consolidated WSCC with the Western Regional Transmission Association and the Southwest Regional Transmission Association.  The Northwest Regional Transmission Association is likely to follow.  In order for this proposal to pass, 85% of the members must vote in favor and 90% of the control area MWs.  I think we should be there to vote for approval of the proposal.  In addition to combining the three (and possibly four) organizations, the change will alter the board make up, bringing independent members onto the board and allowing more latitude in membership.  The committees will be reevaluated as well and restructured over then next 2-3 years.

	Ray Alvarez is the member of the Board, so I talked to him about coverage.  He seemed to be uncertain about his availability.  I have an RTO West Congestion Management Meeting, where we are closing in on the final details of a financial rights model based on nodal pricing in real time.  I think I need to be there to keep the thing from getting fouled up.  Dave is close in Phoenix, so that was the reason that we tentatively made a reservation for him at the hotel.

Steve

 -----Original Message-----
From: 	Steffes, James D.
Sent:	Monday, November 19, 2001 7:21 AM
To:	Perrino, Dave; Alvarez, Ray; Walton, Steve
Subject:	RE: WSCC BOT Meeting announcement - Dec 5-6 Phoenix

Before we take this on, let's talk about how it fits into our priorities.  What will be happening that we must cover?

Jim

 -----Original Message-----
From: 	Perrino, Dave
Sent:	Saturday, November 17, 2001 12:29 AM
To:	Alvarez, Ray; Walton, Steve; Steffes, James D.
Subject:	RE: WSCC BOT Meeting announcement - Dec 5-6 Phoenix

Ray,

I will be happy to attend the WSCC BOT meeting in December.  I spoke to Steve about the issues to be covered, so we should be all set.  I will contact WSCC and register next week.

Kind Regards,

Dave

 -----Original Message-----
From: 	Alvarez, Ray
Sent:	Friday, November 16, 2001 11:45 AM
To:	Perrino, Dave; Walton, Steve; Steffes, James D.
Subject:	RE: WSCC BOT Meeting announcement - Dec 5-6 Phoenix

Dave, Steve and I talked and due to our schedules and distance from Phoenix, we think it would be most effective if you could represent the company at this BOT meeting.  This is assuming your schedule allows and Jim is on board with one of us attending.  It will be an important meeting with approval of WECC and next year's budget on the agenda.  I am making hotel reservations for you, since today is the deadline.  I think you also need to fill out a form for WSCC; Jenny Remington is the meeting planner.  I will send Dennis Eyre a delegation after I hear from you and Jim.  Ray

 -----Original Message-----
From: 	Perrino, Dave
Sent:	Thursday, November 15, 2001 12:20 PM
To:	Alvarez, Ray; Walton, Steve
Subject:	WSCC BOT Meeting announcement - Dec 5-6 Phoenix

FYI

 << File: DEC 2001 ANNOUNCE.doc >>


Since Unify {MOP}  is down today it will be impossible to meet my
aggressive deadline for completing
         the "Ken Seaman" report.
         Once the system is up and running, I will complete the report and
the Julie Meyers report.
          I am updating both reports  with the information available.

         This message really is intended for Gary because Daren and Pat is
aware of my situation.

---------------------- Forwarded by Robert E Lloyd/HOU/ECT on 08/01/2000
02:48 PM ---------------------------
From: Robert E Lloyd on 07/31/2000 09:50 AM
To: Pat Clynes/Corp/Enron@ENRON
cc: Daren J Farmer/HOU/ECT@ECT, Gary A Hanks/HOU/ECT@ECT, Robert E
Lloyd/HOU/ECT
Subject: Re: Industrial Report

I will have  the "Ken Seaman"  file completed by the end of day August
1st.

	Enron North America Corp.

	From:  Pat Clynes @ ENRON                           07/31/2000 09:40 AM

To: Robert E Lloyd/HOU/ECT@ECT
cc: Robert E Lloyd/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Gary A
Hanks/HOU/ECT@ECT
Subject: Re: Industrial Report

I am referring to Ken Seaman's file which provides additional information.
We definitely need Ken's
File completed by Aug 1st. and distributed to our group, Daren Farmer, and
Gary Hanks.  Both files should
be completed and can be linked on duplicate information.    Thanks,  Pat

Robert E Lloyd@ECT
07/31/2000 09:29 AM
To: Pat Clynes/Corp/Enron@ENRON
cc: Robert E Lloyd/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Gary A
Hanks/HOU/ECT@ECT

Subject: Re: Industrial Report

I am confused. What file do you want me to update;   Julie Meyers file or Ken
Seaman file ?
  Both files  provide similar data which is helpful to all of our support
groups.
  To  prepare both files I feel is a duplicate of my efforts .  Please let
know if you want both files updated
   and the approximate time table for completion.

	Enron North America Corp.

	From:  Pat Clynes @ ENRON                           07/31/2000 09:02 AM

To: Robert E Lloyd/HOU/ECT@ECT
cc: Daren J Farmer/HOU/ECT@ECT, Gary A Hanks/HOU/ECT@ECT
Subject: Re: Indutrial Report

Robert,
This is the file that I referenced in my last email.   Please get this file
going again.  Thanks,  Pat

Daren J Farmer@ECT
02/25/2000 04:52 PM
To: Robert E Lloyd/HOU/ECT@ECT
cc: Pat Clynes/Corp/Enron@ENRON

Subject: Indutrial Report

Robert,

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

D


Some points of interest for the week,
Equity Market Update
There is a tug-o-war in the market between the crisis in confidence caused by the Enron debacle and the increasingly positive nature of the economic data. First, let's chat about the Enron fall-out.
The market seems to be suffering from a nasty case of Enron-itis, as some of the talking heads have called the recent negative sentiment in the market. Clearly something changed with the bankruptcy of Enron. It is the largest US bankruptcy ever. There are not one, but two official governmental investigations of the company and further investigations are likely. The bankers, accountants and the lawyers are also going to get a hard look. What has the market particularly bothered is the glaring oversight by Arthur Anderson (AA), one of the big five accounting firms. Delta Airlines has been using AA for over 50 years and they are looking for a new auditor. Also, the credit rating agencies dropped the ball too. One of them actually upgraded Enron's debt a few weeks before its demise. What is the investing public to think? Who can you trust? Generally, investors understand that the Street's advice needs to be viewed with a critical eye, but the accountants were supposed to be looking out for investors. It certainly makes you say hmmmmm...
The market hates uncertainty and the level of uncertainty has increased greatly and it is not likely to dissipate for some time. Imagine the discussions at the other accounting firms. Companies are not going to be able to slip anything by their accountants from now on. Standards are going to be toughened up and that may cause some pain for companies that have pushed the envelope in the past. In addition, the market is going to search and destroy every company that has Enron-like qualities. Off-balance sheet partnerships or structures, complicated financial statements and foreign domiciled tax structures. It started almost right away with the decimation of Enron's competitors, Williams (WMB), El Paso (EP), Mirant (MIR) and Calpine (CPN), who have had to sell assets and issue stock in order to repair their balance sheets. Some of those companies are trading as if we will never need power or natural gas again (EP is my favourite among these companies, as you know). Next, the market had its day or so with the asbestos-infected companies and then more recently proceeded to anyone with off-balance sheet assets or a history of accounting indiscretions. We had better get used to this sort of roller-coaster existence. With over 6,000 hedge funds, a hyper-active media and market information available 24/7, the witch hunts will continue. Still, it is important to note a few things:
First, not all companies with off-balance sheet items are guilty of transgressions and not every company that acquires others for a living (a la Tyco) violates standard accounting principles. In fact, nobody has proven (yet) that Tyco has done anything improper. The risk of impropriety makes people sell, not the fact.
Second, regardless of whether your company is guilty of doing anything nasty, if it plays in the same sand-box as a company that attracts the ire of investors, it is going down. Period. Full stop. No matter if it is guilty of anything or not. These are market events not business events. Consider the pain and suffering experienced by El Paso (EP) thanks to Enron or Viacom (VIA.b) thanks to Haliburton (HAL) and its asbestos exposure. Viacom bought CBS which owned Westinghouse once upon a time, but that did not stop the stock from getting pasted even though it is insured and reserved up the wazoo ('up the wazoo' is a technical term signifying a significant amount).
Third, emotions and sentiment can push stock prices around a great deal in the short term, but over the long term, stock prices are determined by a company's ability to generate cash. The best opportunities are likely to come from buying companies with low debt levels that are relatively free of controversy, but have been beaten up because they resemble another company with a real problem. Biovail (BVF), Viacom (VIA.b), El Paso (EP), etc. However, each of these names also comes with an increased risk profile as a result of the market's heightened sensitivity to 'issues' (accounting, asbestos, debt levels, litigation, etc.).
On the economic front, the data seems to be point to an economic recovery that is already underway.
Consumer confidence rose from 94.6 to 97.3 in January and was up for the second straight month. The index is now above the pre-September 11 level. Also the expectations component of the index was the highest in over a year, suggesting that consumer spending should continue to hold up well.
Durable Goods orders rose in December and importantly the ex-transportation orders rose for a third month in a row, the longest streak of gains in 4 years.
New home sales rose stronger than expected and taken together with last week's existing home sales, total home sales were above 6.1 million (annualized) and stable.
Today, the unemployment rate fell to 5.6% and the 4-week moving average of jobless claims fell to its lowest level since August; and the ISM (NAPM) index came in at 49.9 vs. 50.0 expected and new orders remained above 50, indicating order volume is expanding.
Finally, on the international front, the German Business Confidence index rose and is now close to its pre-September 11 level.
Unfortunately, Japan continues to struggle. The Japanese unemployment rate rose to a record high 5.6% and real wage-earning household spending fell 4.4% compared to last year. Both figures were worse than expected and the drop in household spending does not bode well the prospects of an economic recovery. Also, the yen continues to slide as confidence in the government and the economy wanes. The Japanese fiscal year ends on March 31st and there is widespread concern that the country's banks will have to mark down the value of more loans and investments, potentially pushing some of them into bankruptcy. Of course, a number of bankruptcies would be a good thing much like the S&L crisis was for the US in the early 1990s. A cathartic cleansing followed by an audible flush could lead to a great buying opportunity. Stay tuned.

Financials - The US banks are trading very poorly - no wonder. Credit quality, which everybody knew was bad, has turned out to be at least as nasty as expected or worse. PNC Financial (PNC) had to restate its earnings when the SEC forced the company to consolidate 3 subsidiaries, K-Mart (KM) filed for chapter 11, Global Crossings (GX) shuts its doors, and today, the 2nd biggest European cable company defaulted on $6.4 billion in debt and preferred stock. When you add these events on to the Enron scenario, it makes investors of all kinds hold a bit more cash, a few more government bonds and a little less equity. This is the kind of pain that is quite typical for the trough of the credit cycle. As you know, JP Morgan (JPM) has been a recommended stock for many quarters, however it looks like it will be removed from the US Focus List as it has broken our technical screen. The stock remains buy or strong buy rated around the Street and a great deal of bad news would seem to be already priced into the stock. However, the risk of further negative credit events seems quite high, and as a result, we suggest that new money go into Citigroup (C), which is trading at just under 14x 2002 EPS vs. its historical range of about 12x to 20x. Out anlayst's comments on Sun Life (SLC) suggest this is a name we should continue to accumulate.
Sun Microsystems (SUNW) is under pressure following negative comments by Merrill. According to Merrill, recent comments by ORCL's Larry Ellison give cause for concern about SUNW's high-margin Unix server mkt; ORCL is replacing 3 Unix servers with a cluster of INTC servers running Linux; concern is that SUNW's Unix biz will be attacked from below by INTC servers running NT or Linux (particularly Linux, as it's easier to learn than SUNW's Solaris operating system). Microsoft (MSFT) was added to Goldman Sachs portfolio and Oracle (ORCL) was removed.
Calpine (CPN) was downgraded to Deutche Bank to BUY from Strong Buy due to a lack of near-term catalysts in the stock; current risks include: continued weakness in power prices and spark spreads, the California DWR contract renegotiations, a highly leveraged balance sheet, and a tight cash flow situation. Price target is $20. We should get used to reading recommendations like this one. The list of risks is large and imposing and yet many of you will notice that the target is $20 suggesting a 72% return is possible over the next 12 months. We would encourage investors to focus on the risks and the likelihood of them happening rather than a highly subjective target.
In Canada, focus on Focus List names Sun Life (SLC) and Shaw Communications (SJR.b). Suitability is everything, never more so than in the current market environment.
Interest Rate Update
The big, but not so surprising news yesterday was the decision by the FOMC to keep the Fed funds rate steady at 1.75%, while the discount rate remained at 1.25%.  also as expected, the Fed maintained their easing bias.  This was the first "no change" following an FOMC meeting since Dec/00, after 4.75%  of cuts in 11 steps through 2001.  The committee noted that there are "signs that weakness in demand is abating and economic activity is beginning to firm have become more prevalent".  This is different from the last comment on Dec 11 when they stated "weakness in demand shows signs of abating, but those signs are preliminary and tentative".  The easing bias was justified due to the uncertainty of the strength in business capital and consumer spending.  RBC CM Economics believe that this statement will be a sign of things to come, with rates in a holding pattern, and an easing bias remaining, until the recovery is firmly and sustainably in place.  They are calling for the first hike to occur no earlier than September. - Fed funds futures are pricing in earlier expectations - the July contract is indicating a 100% chance of a 25 bps hike.
Stocks are the bigger news with Nasdaq stock futures up 10.50 pts after an upgrade to Intel by Merrill Lynch, gains in Oracle after the company reaffirmed its profit target, and Applied Materials stating that a bottom has come and gone for the industry.
Have a good weekend and be good,
Rod.


All:

This is the Credit2B NDA which you received a few minutes ago.
Please review when you have an opportunity.

Leslie and Tana: let's coordinate to finalize this. Our meeting with Credit2B
is on Wednesday Dec 13
(and Erisk on Tuesday Dec 12).

We'll be leaving at 9am on Monday morning.

Our contact information in NYC:

W Hotel
541 Lexington
212-755-1200

Thanks,

David
---------------------- Forwarded by David P Dupre/HOU/ECT on 12/08/2000 02:24
PM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  RHarris@Credit2B.com                           12/08/2000 02:15 PM

To: david.p.dupre@enron.com
cc:
Subject: FW: Reciprocal Confidentiality Agreement

-----Original Message-----
From: Harris, Robert
Sent: Friday, December 08, 2000 3:12 PM
To: 'Leslie.Hansen@enron.com'
Cc: Craig.Chaney@enron.com; Tana.Jones@enron.com;
Jeff.Kinneman@enron.com
Subject: Reciprocal Confidentiality Agreement

I think the changes look worse than they are.

I hope these are acceptable to you.

robert
 <<NDA with Enron_.doc>>

 - NDA with Enron_.doc


Tana, please look at that list as soon as you can.  I'd like to get the email
out today or tomorrow since we need rsvps for the food and drink.  Thanks,
Suz


Hi Philippe -

Ken asked me to request that you call the above referenced gentleman.  He was
referred by a friend of Ken's.  He wants to see if his oil on-line business
is a fit for us.  Ken said he has no idea whether it will work or not, but
please give him a courtesy call.

Steve Hellman at 212-628-7191 or cell phone 917-623-9730.

Thanks.

Rosie


-----Original Message-----
From: 	"Fuller, Holly" <Holly.Fuller@ElPaso.com>@ENRON [mailto:IMCEANOTES-+22Fuller+2C+20Holly+22+20+3CHolly+2EFuller+40ElPaso+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Monday, July 30, 2001 3:29 PM
To:	Benson, Robert
Subject:	RE: What up ?

Hey Rob, sorry if I sounded a little weird on the phone the other night.  My
boyfriend and I were in the middle of a really heavy discussion when you
called.  He was standing right by me, (upset with me), so it was a little
awkward.  It was great to hear from you and I'd still like to meet you for a
drink sometime after work.  Take care, Holly

[Benson, Robert]  Hey Holly, sorry it has taken me so long to get back to you, I went back to Calgary for 10 days. Finally toke a vacation, I'm glad you wrote back, I shouldn't have called on a Friday night. I hope every thing worked out with your boyfriend. I'd love to get out with you, how's next wed or thurs ? Talk to ya later, Rob
******************************************************************
This email and any files transmitted with it from the ElPaso
Corporation are confidential and intended solely for the
use of the individual or entity to whom they are addressed.
If you have received this email in error please notify the
sender.
******************************************************************


this quote just fell out of one of my spirals....

"The timid and fearful first failures dismay, but the stout heart stays trying by night and by day.  He values his failures as lessons that teach the one way to get to the goal he would reach."

								--- Edgar A. Guest


MAY,  LARRY ,
?
You have been selected to participate in Enron's Mid Year 2001 Performance
Management process by providing performance feedback on the employee(s)
listed below.  Your feedback plays an important role in our process, and your
participation is critical to the success of Enron's Performance Management
goals.
?
You will soon receive, via email, a UserID and Password to login to Enron's
Performance Management System (PEP).  Once you receive this information, you
may access PEP at http://pep.enron.com , login and select Complete Feedback
from the Main Menu.
?
If you have any questions, please contact the Enron PEP Help Desk at:
Houston:  1.713.853.4777, Option 4 or email: perfmgmt@enron.com
London:  44.207.783.4040, Option 4 or email: pep.enquiries@enron.com
?
Thank you for your participation in this important process.
?
Employee Name:
COUCH, CHARLES
HUAN, XIAOJUN
RIORDAN, SEAN


Welcome to Enron Center South. As you have probably already noticed, things look a little different here. We wanted to orientate you to your new environment and inform you about the future technology coming on-line in the coming weeks.

Occupancy Guidebook To Enron Center South
You will find this handy guide on your desk; it contains information concerning the enhanced printer environment, the new easy access keyboards and telephony procedures.

NEC Monitors
The NEC monitors have an internal anti-glare screen to help reduce eye strain and eliminate the need to install an additional screen cover.  Additionally, an integrated speaker has been installed on one monitor for each desk.

Turret Users
An "Alliance MX turret quick reference guide" has been placed on your desk; this includes important information about the new features such as "Caller ID" and "Voicemail Indication".

Increased Information Access
There are many NEC 50" Plasma screens installed on the 5th and 6th floors.  While many of these will be displaying information designed for the specific unit, others will be displaying various television channels.  The audio to these television channels can be accessed via any of your telephony equipment.  Here's how:

Ten audio channels have been set up for access from your either your Avaya telephone, Stentophon, or IPC Turret.  The channels have been defined on Page 15 of your Turret.  To access the audio from either your Avaya or Stentophon, simply dial the extensions shown in the table below:

Channel	Avaya	Stentophon
Weather Channel	12401	801
CNN Headlines News	12402	802
CNN Financial News	12403	803
CNBC	12404	804
MSNBC	12405	805
Bloomberg	12406	806
Financial News Network	12407	807
CNN	12408	808
Fox Sports	12409	809
ESPN1	12410	810

Wireless Telephony
You may notice the cellular phone coverage is not consistent across the floor, and some areas have virtually no coverage at all.  We are implementing a multi-network "in-building" system to provide consistent high quality service for the campus, keeping you in touch while you are on the move.

Wireless LAN
The infrastructure to support Wireless LAN technology is in place and is being tested. We will be implementing multi level encryption and security to keep our intellectual property safe from eavesdroppers or hackers.

Amtel Replacement
As a move to provide a more flexible "Plug n Play" environment and to help with the reduced desk footprint, we have replaced the Amtel message boxes with Microsoft Exchange Instant Messaging. The Global Messaging Team is testing additional software products to provide some of the features not available with Exchange Instant Messaging; these include one-touch response keys, external LED display, and printing.  Updates will be provided as they become available.

Keeping an Open forum
We will keep you informed of the changes and developments as the migration to the building continues, please feel free to respond with any comments, queries or suggestions to  mailto:Enron.Center.South.Technology@enron.com


its:

\\nahoutrd-dv4\powerdpr2000

 -----Original Message-----
From: 	White, Stacey W.
Sent:	Friday, January  4, 2002 1:39 PM
To:	Postlethwaite, John; Evans, Casey
Subject:	Request

Can one of you resend me the unarchive shortcut to 2000 data?

Stacey


Would we be better off letting the trade associations fight this one out?  I
haven't read the pleading yet, but from your description, I wouldn't be
surprised if all of them oppose it--AGA included.  DF

From: Shelley Corman/ENRON@enronXgate on 02/06/2001 08:53 AM
To: James D Steffes/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Rebecca W Cantrell/HOU/ECT@ECT, Leslie
Lawner/NA/Enron@Enron, "Robert Kilmer (E-mail)"
<rkilmer@enron.com>@SMTP@enronXgate, Mary Kay Miller/ET&S/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON, Dorothy McCoppin/FGT/Enron@ENRON
cc: Margaret Carson/Corp/Enron@ENRON

Subject: Complaint Against Gas Sellers to Reimpose Price Caps - Docket No
RP01-223

The National Association of Gas Consumers (an association of municipal gas
systems) has filed a complaint against all sellers of natural gas in the US
to re-impose wholesale prices caps.  They are seeking a benchmark (soft cap)
of $2.74/MMBtu.

The benchmark figure is based on an average gas forecast from a recent
National Petroleum Council study.  (Ken Lay is a member of the NPC).

The procedural rules are a bit fuzzy.  Ordinarily, respondents have 20 days
to answer a complaint.   However, FERC rules provide for service on
respondents.  Here NAGC has not named specific respondents.


Please disemminate more widely as you may think appropriate, but below is a
copy of the summary and conclusions of a study commissioned by the European
Commission on the "social effects" (meaning "unemployment", among other
things) of liberalisation.  Thought many of you would find it of interest for
a  variety of your research and target audiences.  mcs
---------------------- Forwarded by Mark Schroeder/LON/ECT on 09/10/2000
17:14 ---------------------------

Nailia Dindarova
09/10/2000 16:16
To: Govt Affairs
cc:

Subject: Commission's study on the social effects of liberalisation

Please see attached a summary and conclusions of the study carried out by a
consulting firm (ECOTEC) at the Commission's request.

Nailia


here is the correspondence so far
---------------------- Forwarded by Eric Bass/HOU/ECT on 06/28/2000 02:00 PM
---------------------------

	Enron North America Corp.

	From:  Eric Bass                           06/28/2000 01:29 PM

To: Matthew Lenhart/HOU/ECT@ECT, Timothy Blanchard/HOU/EES@EES, Chad
Landry/HOU/ECT@ECT, Brian Hoskins/HOU/ECT@ECT, Jason.Bass2@COMPAQ.com,
Michael Walters/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, David
Baumbach/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT,
Hector Campos/HOU/ECT@ECT, dasparado@aol.com, mballases@hotmail.com, Jody
Crook/Corp/Enron@ENRON, Harry Bucalo/HOU/ECT@ECT
cc:
Subject: FANTASY FOOTBALL 2000

By the way I am going to kick all of you asses this year
---------------------- Forwarded by Eric Bass/HOU/ECT on 06/28/2000 01:28 PM
---------------------------

	Enron North America Corp.

	From:  Eric Bass                           06/28/2000 08:23 AM

To: Matthew Lenhart/HOU/ECT@ECT, Timothy Blanchard/HOU/EES@EES, Chad
Landry/HOU/ECT@ECT, Brian Hoskins/HOU/ECT@ECT, Jason.Bass2@COMPAQ.com,
Michael Walters/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, David
Baumbach/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT,
Hector Campos/HOU/ECT@ECT, dasparado@aol.com, mballases@hotmail.com, Jody
Crook/Corp/Enron@ENRON, Harry Bucalo/HOU/ECT@ECT
cc:
Subject: FANTASY FOOTBALL 2000

It is coming up on that time again.  The most glorious time of year.  The
time of the year when life begins anew.  No, not spring, FOOTBALL SEASON!

That being said, it is time to start thinking about fantasy football again.

I need to know who of you is interested in playing again, and any suggestions
on rule changes (i.e. scoring, fees, etc.). I was thinking about having the
draft in late August.

Let me know if you have any friends that you think might want to play.

-Eric


There's nothing special here.  Just cloudy.

I took Roscoe in to get neutered.  Neil just couldn't handle it.  Men are so
funny like that.  Now I'm going to run some errands.  I hope the weather gets
better for this evening.  They are still covering the weather 100% on the tv,
and it looks like it is getting better.  Still more of a deal south of here.

Kay


Robert Snare
117 Wichita Lane
Williamsburg, VA 23188
bcsnare@yahoo.com

To Mr. Ken Lay,

I'm writing to urge you to donate the millions of dollars you made from selling Enron stock before the company declared bankruptcy to funds, such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills.  Enron and you made millions out of the pocketbooks of California consumers and from the efforts of your employees.

Indeed, while you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out.  And Enron made an astronomical profit during the California energy crisis last year.  As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt.

The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

Sincerely,

Robert Snare


USA: Enron shares in stay in doldrums after downgrade.
Reuters English News Service, 10/29/01
USA: US companies' credit quality to worsen-Moody's.
Reuters English News Service, 10/29/01

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
Bloomberg, 10/29/01

USA: Enron shares drop despite further triage attempts.
Reuters English News Service, 10/29/01

USA: Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
USA: UPDATE 1-Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
POWER POINTS:Enron May Have To Rethink Asset-Light Focus
Dow Jones Energy Service, 10/29/01
OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's
AFX News, 10/29/01
USA: Moody's cuts Enron to 2 notches above "junk".
Reuters English News Service, 10/29/01
UK: Europe energy firms wary of Enron on credit worries.
Reuters English News Service, 10/29/01
BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
Dow Jones Energy Service, 10/29/01

USA: Enron shares in stay in doldrums after downgrade.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Enron Corp.'s share price hovered above seven-year lows touched in earlier trade Monday after Moody's Investor Service cut the credit status of its senior unsecured debt of North America's largest energy trader to two ratings above junk status.
Enron, the largest electricity and natural gas trader in North America, also on Monday said it was in talks with banks to expand its credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron shares were down $1.40, or 9.03 percent, to $14.10 on the New York Stock Exchange, after earlier in the session trading below $14 for the first time since December 1994.
Moody's also warned that it could cut the debt rating again, now downgraded to Baa2, as well as its rating for the Enron's commercial paper.
Enron's credit-worthiness will have a direct affect on its day-to-day trading operations and its trading partners' perception of making good on trades. With a credit rating hovering above junk status, the cost of doing business will soar as trading partners look for increased collateral to back trades.
Last week Enron shares lost almost $14 billion in market value as a series of piecemeal disclosures about the company's involvement in complex partnerships began to trickle out.
Investors have fled Enron's stock in droves following disclosures that the company did off-the-balance sheet transactions with two limited partnerships run by former chief financial officer Andrew Fastow in deals the U.S. Securities and Exchange Commission is now looking into for possible conflict of interest.
Enron compensated its partners in this off-balance sheet structure with the promise of Enron shares, if the value of private investments in several of its units fell below a certain level.
Many industry observers see Enron's request for additional credit, after the company tapped its banks for $3.3 billion last week, as a sign a weakness.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carol Levenson, an analyst with independent research firm gimmecredit.com.

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

USA: US companies' credit quality to worsen-Moody's.
By Jonathan Stempel

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - U.S. corporate credit quality is likely to grow much worse before it gets better, a leading credit rating agency said in a report issued on Monday.
Moody's Investors Service said that in the third quarter, it put on review for downgrade its credit ratings for 122 U.S. companies. At the same time, it put on review for upgrade its ratings for just 22 companies.
That 5.5-to-1 ratio is far greater than the 1.3-to-1 ratio in the second quarter.
In dollar terms, the situation looks more dire. Moody's warned it may downgrade $543 billion of debt, dwarfing the $66 billion Moody's said it may upgrade by 8.2-to-1.
"Particularly in light of September 11, the fourth quarter will be particularly weak for credit rating changes," said John Puchalla, Moody's senior economist. "A wide excess of rating reviews for downgrade over upgrades in the third quarter suggests credit deterioration will persist at least into early next year."
Rating reviews are significant because, unlike actual rating changes, they are not a "lagging" indicator, and suggest the future direction of corporate credit. Moody's normally wraps up its reviews within three months.
U.S. corporate credit quality is falling for many reasons. These include the weakening U.S. economy, an inability of marginal companies to raise cash, debt-financed merger activity and fallout from the Sept. 11 attacks on such industries as airlines, insurance, and travel.
For example, Moody's in July warned it may cut Comcast Corp.'s ratings after the Philadelphia-based company bid $44.5 billion for AT&T Corp.'s cable TV operations.
Then last month, Moody's warned it may cut Chicago-based Boeing Co.'s ratings because of the attacks' potential impact on demand for commercial airplanes.
In the third quarter, Moody's warned it may cut its ratings of 54 speculative-grade, or "junk"-rated, companies, and raise the ratings of just 11. For investment-grade companies, the gap was even more yawning: 68-to-11.
And in the fourth quarter? Through Friday, Moody's warned it may downgrade 47 companies and raise a mere four. On Monday, it downgraded embattled energy trading giant Enron Corp., and put all of its ratings on review for another downgrade.
Puchalla, however, said the decline could slow next year, in part because interest rates are low and companies are managing their balance sheets more conservatively.
"Lower borrowing costs and slowing debt growth should reduce debt servicing costs, and fiscal stimulus from the federal government should boost business revenues," he said. "That is a positive for credit quality."
The third quarter was the 14th in a row when corporate rating downgrades outpaced upgrades. The record is 19 quarters, set between 1988 and 1993.

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

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
2001-10-29 12:16 (New York)

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)

     (Updates with analyst comment in fifth paragraph.)

     Houston, Oct. 29 (Bloomberg) -- Enron Corp., which can't get
low-interest, short-term loans, faces skeptical lenders who will
demand increasingly harsher terms as the largest energy trader
tries to get cash in the bank, credit analysts said.

     ``Anyone providing new funding is going to be nervous,'' said
Sean Egan, managing director at Egan-Jones Ratings Co. ``It's
likely that lenders are going to demand collateral.''

     Enron is trying to get $1 billion to $2 billion in loans from
Citigroup Inc., J.P. Morgan Chase & Co. and other banks to calm
investors after a 52 percent drop in the company's stock since
Oct. 17, the Wall Street Journal reported. The company needs cash
every day to settle commodities transactions and to keep trading
partners.

     The company on Thursday tapped $3.3 billion in bank credit
lines last week to pay off about $2 billion in commercial paper,
or short-term corporate loans. A week ago, the Enron said the U.S.
Securities and Exchange Commission had began an inquiry into
related-party transactions. They cost the company $35 million and
$1.2 billion in lost shareholder equity.

     ``Banks are in the driver's seat, and Enron is a little
desperate,'' said Peter Petas, a debt analyst at CreditSights Inc.
``I think their interest rates for loans would go up.''

                       Sells Assets for Cash

     Companies in Enron's situation often agree to other bank
terms in order to secure loans, Petas said. Those can include
agreeing to use proceeds from selling assets to pay debt and
putting up assets as collateral.

     Enron is attempting to sell assets to raise cash. Two related
partnerships, Osprey and Marlin, depend on selling power plants
and similar assets to repay $3.3 billion borrowed to buy the
plants. Enron may have to pay any difference between the debt and
sales proceeds.

     The company plans to complete the $2.9 billion sale of
Portland General Electric, an Oregon utility, to Northwest Natural
Gas Co. next year.

     Shares of Houston-based Enron fell $1.30, or 8.4 percent, to
$14.10 in midday trading. Earlier, they touched $13.55, down 12
percent. The company's credit rating was cut by Moody's Investors
Service after it wrote down the value of its assets.

     The stock had tumbled 80 percent in the past 12 months.

--Russell Hubbard in the Princeton newsroom, 609-750-4651

USA: Enron shares drop despite further triage attempts.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Enron shares slipped to a new six-year low in early trade as North America's largest natural gas and electricity trader said it was talking to banks about tapping additional credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron's shares were trading down 90 cents, or 5.8 percent, to $14.60 in early morning trade on the New York Stock Exchange. Shares crashed through $15, a low not seen since February 1995.
Last week, Enron shed almost $14 billion in market value as its stock price tumbled more than half since last week, when a series of piecemeal disclosures about its involvement in complex partnerships began to trickle out.
However, many industry observers see Enron's request for an additional credit after tapping its banks for $3.3 billion last week after as a sign a weakness not of strength.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carole Levenson, research analyst with independent research firm gimmecredit.com.

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

USA: Enron says in talks with banks for new credit line.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a move to shore up investor confidence.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on a new credit line.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
Enron shares sank 50 cents, or 3.2 percent, to $15 in early morning trade on the New York Stock Exchange. ((David Howard Sinkman, New York Newsdesk 646-223-6094)).

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

USA: UPDATE 1-Enron says in talks with banks for new credit line.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a new move to shore up investor confidence after it tapped about $3 billion in credit last week, and to stop a plunge in the company's stock that set new six-year lows.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on the new credit line.
Enron shares crashed through a psychological barrier of $15 a share, shedding $1.66, or 10.65 percent, to $13.85 in early morning trade on the New York Stock Exchange. The stock has lost more than half of its value in the past two weeks, losing more than $14 billion in market capitalization.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer in Houston.
Enron shares have tumbled since the company reported its first-quarterly loss in more than four years on Oct. 16. The company also wrote down $1.2 billion in equity, including transactions with partnerships formerly run by its chief financial officer who was forced to step down from Enron last week.
The sell-off was sparked by investor concern about the transparency of the transactions, which the Securities and Exchange Commission is examining. Enron last week replaced CFO Andrew Fastow as part of efforts to restore investor confidence.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
"Clearly, both the stock and bond market view Enron as being in dire straits," said independent research firm Gimme Credit analyst Carol Levenson.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead it's an act of desperation."

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

POWER POINTS:Enron May Have To Rethink Asset-Light Focus
By Mark Golden

10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

NEW YORK -(Dow Jones)- On the face of things, it's hard to understand the stock market's headspinning reaction to Enron Corp.'s (ENE) revelation of some bad news in recent weeks.
Why the talk of a "death spiral" for North America's premier energy trading company? The stock price of Cisco Systems Inc. (CSCO), for example, saw an almost identical drop over a similar 12-month period. Nobody questioned the viability of Cisco.
The difference is that over the past few years, Enron has redefined itself as a company that runs on financial and intellectual muscle - not hard assets - and that focus is getting the company into trouble now that its credibility is in question.
If you're buying network components, you can probably stand some ambiguity in the finances of your supplier. After all, you're buying something you can touch. But if you're buying power or gas, what you're really buying is a commitment to deliver. If your supplier doesn't come through when the market gets tough, you're left totally exposed. In Enron's energy trading business, then, credibility at every level is critical.
For now, Enron looks to be more than viable. But the company's asset-light strategy might not be. Gross profits from trading have shrunk to 1.65% in the third quarter from 5.26% in the first quarter of 1998. Meanwhile, asset-heavy energy companies like Mirant Corp. (MIR) and Calpine Corp. (CPN) successfully use trading to optimize the performance of power plants and other infrastructure.
Two weeks ago, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. That didn't send investors running, however. In fact, its stock price rose a bit on the news.
What hurt was the disclosure that Enron had reduced its net assets, or "shareholders' equity," by $1.2 billion as a consequence of unwinding positions in partnerships headed by former Chief Financial Officer Andrew Fastow. That, along with warnings of possible downgrades by credit ratings agencies and an inquiry by the Securities & Exchange Commission produced a $15.6 billion drop in Enron's market value.
On Monday, Moody's Investors Service followed through by downgrading its rating on Enron's senior, unsecured long-term debt to Baa2 from Baa1, leaving it two steps above junk-bond levels. The agency kept Enron's ratings on watch for further downgrade.
Long-Running Concerns

A 50% hit to shareholder value still seems like an overreaction to a 10% reduction in shareholders' equity. The stock price reflects the expectation of additional losses to be reported and Enron's loss of credibility. Enron executives in a conference call Tuesday insisted that the worst was behind them, but few on the call believed that.
For some analysts, Enron's revelations only fed long-running concerns about the company's lack of financial disclosure.
Cary Wasden, managing partner of Reed Wasden Research, has had a "sell" recommendation on Enron since March. Unlike the analysts at big Wall Street firms, Wasden isn't in the business of selling stock. His firm isn't involved in brokerage and isn't a hedge fund. Wasden gets paid for his research, and the company doesn't invest in the securities it covers.
A main Wasden concern with Enron is that the company has regularly included the proceeds from one-time sale of physical assets in operating income. His belief is that Enron has dramatically inflated its earnings for the past couple of years - a concern to which an Enron spokeswoman couldn't immediately respond.
"Don't believe by any means this is the end of the story," Wasden said.
Wall Street sell-side analysts have largely kept Enron as a "buy" or "strong buy" as the stock fell from $90 to $20. But even they are expressing concerns about the quality of Enron's reporting.
For now, the plunge in the price of Enron's shares and bonds, which last week started trading like junk-rated debt, hasn't hurt its credit standing with energy trading partners.
"We haven't changed our thinking regarding Enron or our policies and practices. We're watching it, and so is everybody else, but they are a solid company," Reliant Energy Inc. (REI) spokesman Richard Wheatley said in a typical reaction. "This is unfortunately a feeding frenzy regarding some dealings that I'm sure Enron will be able to come out of at some point."
Keeping Talent A Challenge

Enron is a big company - far too big to ignore. But continued deterioration in the price of its shares and bonds could lead counterparties to restrict their traders' transactions with Enron. If the company's investment-grade bonds continue to trade near levels traditionally considered distressed, risk managers won't be able to ignore it, whatever else Moody's does.
Assuming that doesn't happen, Enron still faces a tough road ahead. Like all companies, Enron is the combination of capital and talent. For financial companies, talent is the more important ingredient, and Enron has been suffering damage to its talent for some time.
New Chief Executive Jeff Skilling left in August, and a handful of his key lieutenants left earlier in the year. The losses can be expected to continue. Much of the top management cashed out when the company's stock price was high and moved on. Now middle management on down is angry and anxious to move on, if they haven't already.
Over the years, Enron has compensated its very talented labor with stock options to make up for base pay considered low by the industry. Those options are now nearly worthless. If Enron's debt-service costs rise, the company could struggle to attract the talent needed to generate income in its core business of trading energy in North America.
Some analysts would like to see more turnover at the very top. When Skilling left, nobody believed Skilling or Chairman Kenneth Lay's assurances that it was for "personal reasons." When CFO Fastow was forced out of his position last week, Lay said, "In my continued discussions with the financial community, it became clear to me that restoring investor confidence would require us to replace Andy as CFO."
That's putting words in Wall Street analysts' mouths. Who thought scapegoating Fastow was really the answer?
"I don't know anybody who said that," Wasden said. "What did the CFO do, what did Skilling do, that Ken Lay wasn't part of?"
Real change will have to come from without, Wasden said.
"Enron has been a cult, more than a company," he said. "Recruiting from within does nothing to change the company, it just changes the disciples. Enron needs to pull some top talent from outside."
Nevertheless, Wasden thinks Enron's stock has reached its natural floor and, if the company starts disclosing how it really makes money, it can recover over time.
"There are a lot of earnings that can be wrung out of really strong operating assets, like pipelines and power plants," he said.
That means paying more attention to the assets that Enron has spent the past few years denigrating. Given the bind Enron is in, Lay won't have much choice. Enron will survive, but it won't be the same company at all.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com

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

OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's

10/29/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

(Moody's corrected its stance on Enron ratings to a downgrade)
NEW YORK (AFX) - Moody's Investors Service said it has lowered the senior unsecured long-term debt ratings of Enron Corp from Baa1 to Baa2 following a deterioration in Enron's financial flexibility since the company announced significant writedowns as well as equity charges in previously undisclosed partnership investments.
The long-term debt ratings remain on review for further downgrade, Moody's said.
Moody's also placed the company's Prime-2 rating for commercial paper on review for downgrade.
Moody's initially placed Enron's long-term debt ratings on review on Oct 16. The write-downs and equity charges led to a substantial loss in investor confidence that has led to a more than halving of Enron's share price and difficulties in rolling over commercial paper, according to Moody's.
In response to these events, Moody's said Enron has shored up its near-term liquidity position by drawing down on all of its committed revolving credit facilities and buying back its outstanding commercial paper, leaving the company with a net cash position of approximately 1.2 bln usd.
Moody's said it plans to focus on management's success in lining up further liquidity support and on their ability to retain credit availability from their major counterparties.
aw/gc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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

USA: Moody's cuts Enron to 2 notches above "junk".

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Moody's Investors Service on Monday cut embattled energy trading giant Enron Corp.'s senior unsecured debt rating to two notches above junk status, and warned it may cut that rating again, as well as its rating for Enron's commercial paper.
The rating agency cut Houston-based Enron's senior unsecured debt to "Baa2" from "Baa1," and said it may cut Enron's "Prime-2" commercial paper rating, which affects short-term debt. Its rating actions affect $13 billion.
Moody's said Enron is suffering from deteriorating financial flexibility since it announced big write-downs and equity charges from previously undisclosed partnership investments this month. This triggered "difficulties in rolling over commercial paper," Moody's said.
Enron, which has about $63.4 billion in energy assets, said on Monday it is talking with banks to get more credit, after last week drawing down $3 billion from a bank credit line to buy back its outstanding commercial paper.
Its shares traded Monday on the New York Stock Exchange at $13.75, down $1.75, or 11.3 percent. They have fallen 62 percent since Oct. 12, from $35.81.
Rating agency, Standard & Poor's, on Thursday revised its outlook for Enron's ratings to "negative" from "stable."

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

UK: Europe energy firms wary of Enron on credit worries.
By Stuart Penson

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 29 (Reuters) - Energy companies in Europe are shying away from trading with troubled U.S. energy group Enron amid concerns about the company's credit status, industry sources said on Monday.
Several large energy groups have frozen their dealings with Enron - one of Europe's biggest gas and power traders - as they hold urgent talks with the U.S. group about setting up new credit arrangements, the sources said.
"I think Enron's approach is to get the major counterparties back on board as quickly as possible and then hope the smaller ones will follow," said the head of risk management at one UK utility that halted its trade with Enron last week.
"They are talking with us about bank letters of credit," he said. "The people that are still trading with them are doing so on a very restrictive basis."
A spokesman for Enron's European headquarters in London headquarters declined to comment.
Reluctance to trade with Enron in Europe comes as the company tries to rebuild investor confidence after its stock hit five-year lows.
Triggering the slide was news last week the U.S. Securities and Exchange Commission is investigating huge losses relating to a private equity operation run by its former chief financial officer.
Houston-based Enron trades a large amount of its volume in the U.S. and Europe through its Internet EnronOnline system.
Last Friday the company said trade on EnronOnline was above average levels with more than 8,400 transactions at a notional value of approximately $4 billion.
Traders said Enron's plight could hit liquidity in European gas and power markets, where liberalisation has unleashed rapid growth in energy trading in the last couple of years.
One industry source cited a brokers list showing eight companies in the UK electricity market had put on hold their trading Enron, which is among the biggest five traders in the market.
In mainland Europe, where Enron has been a major driver of liquidity, potential counterparties are treading with care.
"We are avoiding them as counterparties - either by not trading with them or by using a 'sleeve' (a third party trader)," said a senior trader at one of Germany's big utilities, who declined to be named.
French traders said wariness about dealing with Enron had dampened liquidity although Enron was still in the market on Monday morning.
"Enron is a major player so counter parties are looking to see if there is a problem," said one French trader.

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

BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
By Michael Rieke

10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

HOUSTON -(Dow Jones)- Thanks to Enron Corp. (ENE), the broadband sector again looks like a place to make money.
But it won't be traders who will cash in on this new potential. It will be class-action attorneys. They're already lining up to sue Enron in at least five shareholder suits.
As of Oct. 25, two of lawsuits had been filed against Enron in federal court and three more in Texas state court. Most of them name as defendants Ken Lay, Enron's longtime chairman, former Chief Executive Jeff Skilling and Andrew Fastow, Enron's chief financial officer until he was put on leave of absence Oct. 25.
Still another suit, which isn't a class action suit, was filed naming as defendants members of Enron's board of directors.
All the lawsuits concentrate on private investment partnerships Enron set up, many of them managed by Fastow. Most of the suits contend that it was a conflict of interest to have the Fastow partnerships doing complicated hedging transactions with Enron.
The transactions named in the lawsuits involved billions of dollars of underperforming assets in broadband, water and other Enron investments.
Fastow operated on both sides of some of those transactions. As Enron's chief financial officer, he was being paid to manage the corporation's finances. As general partner of two LJM partnerships, he managed the counterparties to billions of dollars of trades with Enron. He shared in profits of those partnerships.
When investors began demanding information about the transactions, Enron's share price began to slide. With the heat on, Enron recently unwound the trades with the partnerships and booked $544 million related to losses from early termination of the deals, among other things.
That's when the class action attorneys went to work. So far, at least 14 law firms are representing the plaintiffs. Enron didn't respond to calls asking about the lawsuits.
Among the law firms representing plaintiffs is Milberg Weiss Bershad Hynes & Lerach, which put out a news release announcing its lawsuit. The release points out that the firm has been responsible for recovering more than $30 billion from class action lawsuits.
The lawsuits bring up questions about the bandwidth trading market. Some of the deals with the LJM partnerships run by Fastow "purportedly involved hedging transactions in the broadband market," according to Abrams and Franks v. Enron et al.
That could tie into questions that have lingered in the bandwidth market for months. Market skeptics have said Enron and other energy companies are the only ones trading bandwidth.
Enron has reported that it has been trading with a growing number of counterparties, a total of 120 in the second quarter of this year, according to Enron.
Now market watchers will want to know if any of Enron's trades were done with the LJM partnerships managed by Fastow.
They will also want to know how many bandwidth trades were done with Chewco Investments. That Houston company, according to a report in The Wall Street Journal, was managed by Michael Kopper and was set up in 1997 when Kopper was a managing director with Enron's Global Equity Markets Group. He left Enron earlier this year to work for partnerships run by Fastow.
Do the plaintiffs' attorneys know whether Enron was trading bandwidth with any of those investment partnerships?
"I think if is too early to tell," Thomas Bilek of Hoeffner & Bilek told Bandwidth Beat. "As you know, (information) is coming out in drabs and dribbles from Enron."
It could be several months before plaintiffs' attorneys get a chance to ask Enron officials those questions, Bilek said.
It's also too early to tell what potential damages plaintiffs could win, said Steven Schulman, an attorney with Milberg Weiss. "At this point, you can only talk about it in terms of (shareholder) losses, and the losses are in the billions."
Total losses will depend on the price each shareholder plaintiff paid for the stock and the price at which each shareholder later sold the stock.
Enron's share price topped out between $90 and $91 in the summer of last year. It set a 52-week low Oct. 26 at $15.04. That spread leaves plenty of room for losses.
Schulman told Bandwidth Beat that the record for losses in shareholder cases is $11 billion in a case involving Cendant Corp. (CD). Damages are usually a substantial portion of losses, Schulman said.
"Whether (the Enron case) is bigger or less, I couldn't opine," he said. "This is a big case, by any means."
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@dowjones.com

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