EES is listed as receiving $1.5 million for 7.5 MWs of reduction

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 03/20/2001 01:45 PM -----

	"Beiser, Megan" <Megan.Beiser@edelman.com>
	03/20/2001 01:19 PM

		 To: "Aaron Thomas (E-mail) (E-mail)" <athomas@newenergy.com>, "Andrea Weller
(E-mail) (E-mail)" <aweller@sel.com>, "andrew Chau (E-mail) (E-mail)"
<anchau@shellus.com>, "Bill Chen (E-mail) (E-mail)" <bchen@newenergy.com>,
"Douglas Oglesby (E-mail) (E-mail)" <doao@chevron.com>, "Fairchild, Tracy"
<tracy.fairchild@edelman.com>, "Jeffrey Hanson (E-mail) (E-mail)"
<jeff.hanson@phaser.com>, "jennifer Chamberlin (E-mail) (E-mail)"
<jnnc@chevron.com>, "john Barthrop (E-mail) (E-mail)"
<jbarthrop@electric.com>, "John Leslie (E-mail) (E-mail)" <jleslie@luce.com>,
"Joseph Alamo (E-mail) (E-mail)" <jalamo@enron.com>, "Manuel, Erica"
<Erica.Manuel@edelman.com>, "'Michael Nelson' (E-mail)"
<mnelson@electric.com>, "Peter Bray (E-mail) (E-mail)" <pbray@newpower.com>,
"Rebecca Schlanert (E-mail) (E-mail)" <rschlanert@electric.com>, "Richard
Counihan (E-mail) (E-mail)" <rick.counihan@greenmountain.com>, "'Robert
Morgan' (E-mail)" <rmorgan@newenergy.com>, "Sue Mara (E-mail) (E-mail)"
<smara@enron.com>, "Allen, Stevan" <stevan.allen@edelman.com>,
arm@phaser.com, "brbarkovich@earthlink.net" <brbarkovich@earthlink.net'>,
cra@calretailers.com, dennis.flatt@kp.org, dhunter@smithandkempton.com,
djsmith@smithandkempton.com, Dominic.DiMare@calchamber.com,
drothrock@cmta.net, gharrison@calstate.edu, hgovenar@govadv.com,
jackson_gualco@gualcogroup.com, ken_pietrelli@ocli.com, kgough@calpine.com,
kmccrea@sablaw.com, kmills@cfbf.com, lhastings@cagrocers.com, mday@gmssr.com,
mmoretti@calhealth.org, nplotkin@tfglobby.com, randy_britt@robinsonsmay.com,
richard.seguin@kp.org, RochmanM@spurr.org, rrichter@calhealth.org,
sgovenar@govadv.com, smccubbi@enron.com, spahnn@hnks.com, theo@ppallc.com,
vincent.stewart@ucop.edu, vjw@ceert.org, "Warner, Jami"
<jami.warner@edelman.com>, wbooth@booth-law.com, wbrown@lhom.com,
wlarson@calstate.edu
		 cc:
		 Subject: Press Release: GOVERNOR DAVIS ANNOUNCES STATE AGREEMENTS TO SPUR
ENERGY EFFICIENT BUILDINGS

Megan Beiser
Assistant Account Executive
Edelman Public Relations Worldwide, Sacramento
Phone: (916) 442-2331
Fax: (916) 447-8509

> PR01:104
> FOR IMMEDIATE RELEASE
> 03/20/2001 01:30 PM
>
>
> GOVERNOR DAVIS ANNOUNCES STATE AGREEMENTS TO SPUR ENERGY EFFICIENT
> BUILDINGS 03/20/2001
>
> SACRAMENTO
>
> Governor Gray Davis today announced that the California Energy Commission
> has signed 12 grants and contracts totaling almost $9.2 million to install
> "energy smart" technology in commercial and industrial buildings
> throughout the state.
>
> "Our campaign for conservation and improved energy efficiency will
> translate into real reductions in the summer when we need it most - and
> beyond," Governor Davis said. "With these grants in place, California will
> continue to set the national standard for energy efficiency."
>
> The agreements signed by Governor Davis will account for about 93
> megawatts of projected savings from buildings outfitted with demand
> responsive building systems technology. Demand responsive building systems
> work by using software that automatically dim lights, reduce air
> conditioning use, and cut other electrical loads. They operate in response
> to signals from the Independent System Operator (ISO) or from an electric
> utility or service provider.
>
> Under the agreements, commercial electricity customers will agree to shave
> peak loads by 10 to 30 percent upon receiving the signal from the ISO.
> They will be paid by the ISO to curtail electricity load in their
> buildings in real time.
>
> In addition to these grants, the Governor also announced that an
> additional eight megawatts of electricity would be saved through grants to
> the K-Mart Corporation. K-Mart will use a $2 million grant to replace old
> lighting fixtures with energy efficient ones in its 85 California stores.
>
> The demand responsive program and the innovative efficiency and renewables
> program covering the K-Mart grant are parts of AB 970, which was passed
> last year. The bill is designed to reduce at least 220 megawatts of peak
> load by June 1, 2001.
>
> The Governor has proposed an additional $70 million in his New Demand
> Reduction Initiative program that would yield an additional 160 megawatts
> in savings from demand responsive building systems.
>
> For more information, please contact the California Energy Commission.
>
> Demand Responsive Contracts:
> 1. Sacramento Municipal Utility District, $882,750, target savings: 10
> megawatts
> 2. Roseville Electric, $956,000, target savings: 10 megawatts
> 3. Pacific Gas and Electric, $1,411,026, target savings: 35 megawatts
> 4. Seiben Energy Associates, $340,245, target savings: 1.3 megawatts
> 5. Apogee Interactive, Inc., $422,915, target savings: 5 megawatts
> 6. Enron Energy Services Op. Inc. , $1,500,000, target savings: 7.5
> megawatts
> 7. San Diego Regional Energy Office, $1,085,476, target savings: 3.125
> megawatts
> 8. Global Energy Partner, LLC, $1,540,000, target savings: 15 megawatts
>
> Grants:
> 1. Cisco Systems, $40,460, target savings: 1.2 megawatts
> 2. Alameda County, $260,964, target savings: 1.2 megawatts
> 3. Hewlett Packard, $445,693, target savings: 1.8 megawatts
> 4. Foothill College District-De Anza, $283,140, target savings: 1.3
>
>
>
> Megan Beiser
> Assistant Account Executive
> Edelman Public Relations Worldwide, Sacramento
> Phone: (916) 442-2331
> Fax: (916) 447-8509
>


FYI.  Thanks.

Lara
----- Forwarded by Lara Leibman/Enron Communications on 11/06/00 04:29 PM
-----

	Wayne Gardner
	11/06/00 10:19 AM

		 To: Lara Leibman/Enron Communications@Enron Communications, Donald
Lassere/Enron Communications@Enron Communications, James Ginty/Enron
Communications@Enron Communications, Robbi Rossi/Enron Communications@Enron
Communications, Michelle Hicks/Enron Communications@Enron Communications,
Cynthia Harkness/Enron Communications@Enron Communications, Alisa
Christensen/Enron Communications@Enron Communications, Lou Casari/Enron
Communications@Enron Communications, Sue Nord/NA/Enron@Enron, David
Merrill/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jan Haizmann/LON/ECT@ECT
		 cc:
		 Subject: 11/8/00 Regulatory, accounting, legal, tax meeting - the sequel

The follow-up meeting to last Thursday's RAL&T meeting will be held on
11/8/00 in EB 4434/4438 from 0830 to 1200.

The domestic call-in number will be (877) 233-7845

The international call-in number will be (505) 766 5458

Participant code for both domestic and international:  510460

Yes, there will be FOOD

W. Wayne Gardner
Enron Broadband Services
1400 Smith Street
Houston, TX  77002-7361
Phone:  713 853 3547
Fax:  713 646 2532


Thanks very much, Laura.  If it's appropriate, I would like to attend?  Just
let me know.  Thanks very much.

Best,
Jeff


Charity gets a time at bat from Enron
Houston Chronicle, 10/03/01
States protest federal involvement in electricity competition, deregulation
Associated Press Newswires, 10/03/01
USA: Enron stock extends recovery with 10 pct jump.
Reuters English News Service, 10/03/01
Nigeria LNG Signs MOUs With Enron, Iberdrola
Dow Jones Energy Service, 10/03/01
Supreme Court Hears Case With High Import For Pwr Mkts
Dow Jones Energy Service, 10/03/01
INDIA: Enron's Indian unit again defaults on interest dues.
Reuters English News Service, 10/03/01
USA: Energy merchant stocks up after Calif. settlement.
Reuters English News Service, 10/03/01
BG India Hopes To Be Operator Of Enron Fields By Oct 31
Dow Jones Energy Service, 10/03/01
Enron sells Indian oil and gas assets to British operator
Associated Press Newswires, 10/03/01
Enron Confirms India Oil, Gas Assets Sale To BG Grp
Dow Jones Energy Service, 10/03/01
BG Group to Buy Enron India Assets for $388 Million (Update4)
Bloomberg, 10/03/01

U.S. Supreme Court Questions Reach of Federal Energy Regulators
Bloomberg, 10/03/01

Enron to Sell Oil, Gas Fields in India to BG Group (Update1)
Bloomberg, 10/03/01

Oct. 3, 2001
Houston Chronicle
Charity gets a time at bat from Enron
By GREG HASSELL
Copyright 2001 Houston Chronicle
When Houstonians gather at Enron Field this week, Barry Bonds' attempt to rack up 71 homers in a single season won't be the only unprecedented feat on display.
Just above the scoreboard that will record any homers Bonds might send screaming out of the ballyard is a sign bearing the United Way logo. It looks ordinary enough, like the dozens of other ads that dot the stadium.
But the last time the Astros played at home, the sign bore Enron Corp. logo. Late last week Enron donated the sign to United Way, which will get the space through the 2002 season. It's the first time a naming rights sponsor of a modern U.S. stadium has donated a major sign to charity.
According to advertisers familiar with rates at Enron Field, the sign is worth about $500,000 a year. Since Enron maintains a small logo on the sign, the actual value of the gift would be less.
"This tells the world that, as powerful as Enron is, they put a lot of stock in what we do," said Jackie Martin, president of the United Way of the Texas Gulf Coast. "That's beyond the power of dollars. It's priceless."
Enron decided to make the gift because it had two signs in the park, including one that reads ENRON FIELD in huge blue letters.
"I looked up there and thought, `This might be a little bit of overkill,' " said Mark Palmer, vice president of Enron's corporate communications. "We could really help one of our community partners if we shared that space up there. For all the great work the United Way does, it makes sense to partner with them."
Name gets a lot of play
Since Enron agreed to pay $100 million for the naming rights, it has reaped a public-relations bonanza.
"When people say they are going to a game here, they say, `I'm going to Enron,' " Palmer said. "That is tremendous for our company."
Because of the stadium's odd dimensions and the tremendous number of home runs hit there, the name Enron Field is famous in sporting circles.
"I was in London, and I overheard a television announcer say, `Big news at Enron!' "Palmer said. "My head just about snapped off, I turned around so fast. Then I realized it was CNN Sports, and they were talking about the stadium."
While Enron's experience shows naming rights deals can give a mighty boost to a corporation's name, the wider world of naming rights deals is embroiled in turmoil these days.
A number of companies that shelled out millions for naming rights are in financial trouble. That includes PSINet Stadium in Baltimore, named for a dot-com turned dot-bomb. It includes Pro Player Stadium in Miami, named for a troubled maker of sports apparel.
The St. Louis Rams play in a dome named after TWA, but the financially trouble airline has been bought out and the dome's name is for sale.
In past naming-rights deals, the heaviest buyers have been high-tech outfits and airlines. Both of those industries are in the toilet now, and it seems unlikely we'll see any big deals coming from those quarters anytime soon.
"It is a period of uncertainty," said Todd Gruen, managing editor of a publication called Naming Rights Deals. "Once we get a handle on where the economy is going, the naming rights industry can find its place as well."
Some deals go sour
But the situation is more serious than merely dollars and cents. In some cities, there has been a backlash against selling names to the highest bidder.
The mayor of Chicago threatened to scuttle a deal to refurbish Soldier Field unless the Bears relented on their demands for naming-rights revenues. The team backed down last week.
In Denver, the Denver Post is refusing to call the new stadium there Invesco Field at Mile High. Instead, it will call it Mile High Stadium -- the name of the legendary abandoned stadium next door. Denver's mayor, who lobbied hard against selling the name to a corporation, applauded the snub.
Does this mean the golden days of naming rights are over? Will the Rockets find a dry well when they go courtin' for a naming-rights partner for their new downtown arena?
"We've seen a leveling off of prices and we'll continue to see a leveling off for the next few years," said Dean Bonham, president of the Bonham Group, which negotiates naming rights deals. "But contrary to some reports, the sky isn't falling. These deals will continue to be sought by corporations, just not with the sense of urgency we've seen in the past."

States protest federal involvement in electricity competition, deregulation
By H. JOSEF HEBERT
Associated Press Writer

10/03/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - Several states told the Supreme Court the government went too far when it ordered electric utilities to open their power lines to competitors and spurred a movement toward deregulation.
But one of the country's largest power marketers, Enron, argued before the court Wednesday that the Federal Energy Regulatory Commission should have gone even further to help companies like Enron get equal access to power grids.
During the hourlong hearing, the justices gave little indication of how they will decide on a case that could dramatically affect management of the nation's power grids and the future of electricity competition.
At one point, Justice Stephen Breyer said FERC, which regulates wholesale power markets and interstate transmission of power, was being "whipsawed" from both directions.
The commission's 1996 decision, which for the first time required traditional utilities to open their transmission lines to competing power merchants, triggered a movement toward wholesale electricity competition and led numerous states to end monopolies in retail power markets.
But utility regulators in nine states, led by New York, filed suit arguing that the FERC order amounts to a federal agency attempting to regulate retail sales, usurping a traditional state function.
At the same time, Enron's lawsuit charged that FERC violated federal law because it did not require access to transmission lines when utilities continued to keep transmission and retail sales as one operation - as remains the case in many states that have yet to allow competition.
In June 2000, an appellate court essentially upheld FERC's regulation, prompting appeals from both Enron and the state regulators.
"It's an example of where an agency has overstepped its bounds," Lawrence Malone, general counsel for the New York State Public Service Commission, told the justices at Wednesday's hearing. The other states party to the suit are Florida, Idaho, New Jersey, North Carolina, Virginia, Washington, Vermont and Wyoming.
Malone, appearing on behalf of all nine states, argued that FERC's order pre-empts state authority to regulate retail sales and set rates.
"This case isn't about rates," countered Louis Cohen, representing Enron Power Marketing Inc. before the court. "What we're concerned about is getting onto the (grid) system."
Cohen said that under the current access rules a dominant utility in a state that has not moved to competition may still "hog" the lines and keep Enron and similar marketers from moving power across a region.
The Justice Department, representing FERC before the court, argued that the commission only sought to strike a balance between the need to give competitors equal access to power lines and leaving retail market issues to the states.
Edwin Kneedler, deputy solicitor general, told the court that FERC, in his view, could have gone further, as Enron has argued. But, he said, to do so it would first have had to order all utilities to separate retail sales and transmission, something it chose to leave to the states.
The case, which is not expected to be decided until sometime next year, comes at a time of growing concern about electricity competition and power grid reliability in light of recent power problems in California.
About half of the states have taken some steps toward retail electricity competition.
Many power industry experts as well as the FERC commissioners have emphasized that a truly competitive electricity market will be difficult to achieve without smooth and efficient flow of electricity across large regions, if not nationally. And that, argue companies like Enron who want to compete with traditional utilities, will require more open access to transmission.
In an attempt to smooth the flow of power, FERC has embarked on a campaign to establish four large, regional transmission organizations to manage the national power grid. A court decision rolling back some of FERC's authority over open access to transmission lines could affect that effort.
Uncertainty over how far the federal government will be allowed to go in requiring transmission access also could affect state decisions on whether to embrace electricity competition, according to some industry experts.
---
On the Net:
Federal Energy Regulatory Commission: http://www.ferc.fed.us/
Enron: http://www.enron.com/corp/

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

USA: Enron stock extends recovery with 10 pct jump.

10/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, Oct 3 (Reuters) - Shares of Houston-based energy marketing and trading giant Enron Corp. extended their recent recovery from 3-year lows with a 10 percent gain on Wednesday amid improving investor sentiment toward companies that operate in U.S. wholesale natural gas and electricity markets.
In afternoon trading Enron's stock was up $3.17 at $33.78, in a fifth straight day of gains since closing just above $25 on Sept. 26, its lowest close since October 1998.
However, Enron's stock still shows a loss for the year-to-date of some 59 percent, compared with a decline of about 19 percent for the S&P 500 index, and Enron is trading well below highs of around $90 set in August and September of last year.
"Enron was really beaten up because of several issues and was really oversold, so that's why it continues to recover," said Banc of America Securities analyst William Maze.
The Houston-based company's stock fell sharply in August after the surprise resignation of Jeff Skilling as chief executive officer but the stock had already come under pressure as a result of a disappointing performance by its fledgling broadband business and a stalled power plant project in India.
Maze said Enron was currently benefiting from a realization among investors that wholesale natural gas and power companies would probably suffer less than other sectors if the United States enters a protracted economic downturn.
"It's one of the few sectors that offers some visibility to (earnings) numbers both this year and next year, so there is quite a bit of interest coming back into the group," he said.
Maze said Enron and its peers also got a boost on Wednesday from Edison International unit Southern California Edison's plan to pay its creditors and avoid bankruptcy, even though Enron is not one of SoCal Ed's biggest creditors.
Enron and its peers should also benefit from new Federal Energy Regulatory Commission Pat Wood's commitment to opening up the national power transmission grid, Maze said, while Enron's sale of its Indian oil and gas assets, announced on Wednesday, underscores its commitment to its "asset-light" doctrine.

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

Nigeria LNG Signs MOUs With Enron, Iberdrola

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LAGOS -(Dow Jones)- Nigeria LNG Ltd has signed memoranda of understanding with Enron Corp. and Spanish power company Iberdrola for the sale of LNG volumes from the 4th and 5th production units of its expansion program, NLNG said in a statement released here Wednesday.
Nigeria LNG plans to commence production from the two new units in 2005. However, it needs firm sales agreements accounting for all the production from those units before it will finalize the invesment.
The latest deals bring to 6.5 BCM/year the LNG volume from units four and five already committed. Each of the new production units will have capacity of 4 BCM/year.
Nigeria LNG and Enron had earlier signed an MOU for 1 billion cubic meters per year for the expansion program, also known as NLNG Plus volumes. The second agreement raises Enron's share of NLNG Plus volumes from 1 BCM/year to 4 BCM/year.
Spanish and North American receiving facilities are the primary destinations for LNG shipments to Enron under the new agreement, the statement said.
Iberdrola, which signed an MOU for 1.5 BCM/Year, will receive its shipments at the Spanish receiving terminal of Huelva.
Jean-Francois Capelle, General Manager, Commercial, of Nigeria LNG Limited, said MOUs will soon be signed for the remaining volumes of LNG from these units, and that work had already started on sales and purchase agreements to firm up these contracts. These may be signed by the last quarter of the year.
NLNG commenced commercial operation in October 1999 with its two-unit, 5.9 -million tons per annum Base Project. A third unit of similar design and capacity as the Base Project unit is currently under construction and is scheduled for completion in late 2002.
On completion of the NLNG Plus Project, NLNG will have an overall production capacity of 17 million tons per annum of LNG and 2 million tons per annum of LPG.
NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell (25.6%), TotalFinaElf (15%) and Agip (10.4%).
-By Vincent Nwanma; +234-1-585-0849/775-6185; vinwanma@beta.linkserve.com

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

Supreme Court Hears Case With High Import For Pwr Mkts
By Bryan Lee
Of DOW JONES NEWSWIRES

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- The U.S. Supreme Court Wednesday wrestled with how to interpret the 1935 Federal Power Act in the wake of competitive changes that have swept the $220 billion U.S. electricity sector over the past decade.
The justices heard oral arguments in competing challenges to rules the U.S. Federal Energy Regulatory Commission adopted in 1996 requiring utilities to open their transmission lines to competing wholesale power providers.
The case has great ramifications for congressional debate of electric industry restructuring legislation and FERC's ongoing efforts to promote competition as a surrogate for regulation.
"If you pull the rug out from under (FERC's rulemaking), the implications are enormous," said Vicky Bailey, the U.S. Energy Department's assistant secretary for policy and international affairs. Bailey was a FERC commissioner in 1996 when the rules were imposed.
State regulators argued the commission preempted their authority to regulate power sales at retail, while Enron Power Marketing Inc. (ENE), the nation's largest competitive power provider, maintained FERC failed to assert all the jurisdiction it could under the 66-year-old statute.
FERC's open-access mandate, called Order No. 888, paved the way for competitive wholesale power markets. It also set the stage for a 1999 rulemaking carrying that mandate even further to require utilities to turn control of their power lines over to independent management by regional transmission organizations, or RTOs.
But that sweeping effort to reshape the nation's interconnected power grid under control of a handful of RTOs would be hampered if the court agrees with the arguments of state utility regulators that FERC's rules supplanted authority Congress intended the states to have.
If the court agrees with Enron, FERC would have a much freer hand in carrying out its RTO rulemaking.
At issue is the arcane concept of "bundled" versus "unbundled" retail electricity sales. Congress in 1935 never envisioned that half the states today would have moved to open retail electricity service to competition among utilities and alternative providers.
Until the onset of retail power competition, states regulated wholesale power transmission services "bundled" into the retail transaction as an intrastate transaction. FERC regulated interstate transmission services in support of wholesale sales.
But FERC in Order No. 888 determined that once a state opens its power market to retail competition, then wholesale transmission services in support of the retail sales have been "unbundled," and regulation would shift from the states to the federal government.
FERC's policy call usurped state control of retail power sales that Congress intended in 1935, Lawrence G. Malone, general counsel for the New York Public Utility Commission, told the court.
FERC's assertion of authority over wholesale transmission services in support of unbundled retail sales should be struck down in order to preserve the "bright line" between retail and wholesale power sales Congress established in 1935, he said.
"We now have two hands on the retail wheel and it doesn't work," Malone said, accusing FERC of "overreaching" and "rewriting the law."
But Enron argued that FERC should have asserted authority over all wholesale transmission services, whether retail sales are bundled or unbundled. Allowing states to regulate wholesale transmission associated with retail sales violates the interstate commerce clause and disrupts sales in wholesale power markets, said Louis R. Cohen, the attorney representing Enron.
"Utilities hog these (transmission) facilities for their own use and keep us off the road," Cohen said, employing a highway analogy.
Deputy Solicitor General Edwin S. Kneedler argued on behalf of FERC for the court to uphold Order No. 888, which a lower court last year found was a permissible interpretation of FERC's authority under the law.
In its June 2000 ruling, the U.S. Court of Appeals for the District of Columbia Circuit said FERC's open-access transmission mandate represented a reasonable assumption of authority to remedy "a persistent barrier to the development of a competitive wholesale power sale market."
Nevertheless, Kneedler supported Enron's position by stating that FERC has jurisdiction over transmission in bundled retail rates. Any electricity transmitted on the power grid "is necessarily in interstate commerce," Kneedler said.
The justices actively questioned the three attorneys about the language in the Federal Power Act addressing state and federal jurisdiction over electricity sales.
The questioning seemed designed to determine if FERC erred, as Enron argued, in not asserting authority over all transmission services, or if the commission properly exercised discretion in asserting its authority, as the lower court ruled.
But the questioning didn't provide a clear indication as to how the court will ultimately decide the case.
Justice Antonin Scalia, renowned as being a strict constructionist of statutory language, appeared to argue both sides on the case, depending upon whether he was challenging arguments by Malone for New York or Cohen for Enron.
Justice Sandra Day O'Connor's statements appeared to support Enron's position.
"In 1935, we didn't have these interstate grids," O'Connor said. "Today, with a multi-state grid, it's hard to know how any transmission across the grid is anything but interstate commerce," she said.
At another point, O'Connor asked: "What difference does it make if transmission is bundled or unbundled?"
Lynne Church, president of the Electric Power Supply Association, which represents competitive power providers and supported Enron's case before the court, was optimistic that the court will rule that FERC's authority is expansive.
"I think Enron won," Church said.
"I'm cautiously optimistic we'll get a good result," said Cohen, Enron's attorney.
But Charles Gray, executive director of the National Association of Regulatory Utility Commissioners, called the arguments and the probing by the justices "inconclusive."
No matter which way the court rules, Congress will need to pass electricity legislation to address the divide between state and federal jurisdiction, said Gray, who represents state utility regulators.
"I've learned the hard way not to make judgments based on oral arguments," said Elizabeth Moler, who was FERC's chairman in 1996.
Moler, who now heads the Washington office of Exelon Corp. (EXC), called for the court to side with Enron's argument.
"The world has changed since Order No. 888," Moler said, calling the commission's 1996 jurisdictional call a "fair reading" of the law at the time. "If I was there today, I'd go much further," she said.
-By Bryan Lee, Dow Jones Newswires; 202 862-6647; bryan.lee@dowjones.com

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

INDIA: Enron's Indian unit again defaults on interest dues.

10/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, Oct 3 (Reuters) - Dabhol Power Co, the troubled Indian unit of U.S. energy giant Enron Corp , said on Wednesday it has defaulted on interest payments totalling $24 million, the company's second interest default in the past two weeks.
"We have not made interest payments due on September 30 to Indian lenders," a Dabhol spokesman told Reuters.
He said the lenders belonged to a consortium of Indian banks and financial institutions led by the country's largest term lender, Industrial Development Bank of India .
Enron's spokesman told Reuters on September 21 that Dabhol defaulted on interest owed to international lenders, but had not specified the amount.
Some of these payments were also to be made by September 30.
Dabhol's power plant on the western coast of India, built at a cost of $2.9 billion, has been shut since June after its sole buyer, a loss-making local utility, stopped purchasing power and defaulted on payments.
In addition to shutting down the 740 MW first phase of the plant, Dabhol ended work on the almost-completed second phase, which would have increased the capacity to 2,184 MW.
The utility, the state-owned Maharashtra State Electricity Board, had contracted to buy all the plant's output, but later said it didn't need all the power, which it said was too expensive.
Dabhol and the utility are now locked in a legal dispute.
Dabhol has not been earning any revenue since June, and last month requested an unspecified amount from lenders to meet its monthly interest payments.
The Dabhol spokesman said the lenders have still not responded to its request for assistance.
Almost 70 percent of the power plant was funded by debt. Indian lenders, including banks and financial institutions, have lent about $1.4 billion and foreign lenders have contributed the rest.
Of the 30 percent equity, Enron owns 65 percent, the state utility owns 15 percent, with General Electric and Bechtel owning 10 percent each.

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

USA: Energy merchant stocks up after Calif. settlement.

10/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 3 (Reuters) - Shares of energy merchant firms rose sharply Wednesday in early trade after California's second largest utility reached a deal which will allow it to pay off the debt incurred to them for buying power.
Late Tuesday, Southern California Edison, a unit of Edison International , said it reached a deal with state utility regulators that will enable it to develop a plan to pay off creditors. SCE amassed $3.9 billion in debt over the past year buying power, mostly from merchant energy companies.
"I would imagine they are going up on the probability they are going to get paid," said Raymond Moore, an analyst with with Weatherly Securities.
Gainers included Mirant Corp. , which was up 8.63 percent or $1.96 to $24.66; Enron Corp. , up 6.11 percent or $1.87 to $32.48; and Calpine Corp. , up 8.69 percent or $2.15 to $26.90.
The fact that energy merchants are trading at historical lows relative to the Standard & Poor's 500 increase their attractiveness to investors, wrote Salomon Smith Barney analyst Raymond Niles in a research note.
Niles recommends the entire group, which also includes Dynegy Inc. , Duke Energy Corp. , El Paso Corp. , Williams Cos. Inc. and Aquila Inc. . With the exception of Duke, the group was up between 1 and 4 percent.
. (C) Reuters Limited 2001.

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

BG India Hopes To Be Operator Of Enron Fields By Oct 31

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- British Gas India Pvt. Ltd., a wholly-owned subsidiary of the U.K.-based oil and natural gas company BG Group PLC (BRG), hopes to become the operator of the Pannna-Mukta oil and gas field and the Tapti gas field located offshore India's western coast by Oct. 31, BG India's Chief Executive Nigel Shaw said Wednesday.
As reported, BG Group earlier Wednesday announced a conditional acquisition of U.S. energy company Enron Corp.'s (ENE) 30% stake in the Tapti and Panna-Mukta fields subject to getting the operatorship of the fields. The acquistion, worth $388 million, will be for Enron Oil and Gas India Ltd.'s entire offshore interests.
"It's clear. If we don't get the operatorship, we will walk away. We are currently in talks with both ONGC and Reliance, the two other partners in Panna-Mukta and Tapti fields," Shaw told reporters at a press conference in New Delhi.
India's state-owned Oil and Natural Gas Corp. (P.ONG) holds a 40% stake in Panna-Mukta and Tapti fields while Reliance Industries Ltd. (P.REL) owns the remaining 30%.
Shaw said the commercially recoverable reserves from Panna-Mukta and Tapti fields have been estimated at 783 billion cubic feet of natural gas and 43 million barrels of crude oil.
The natural gas from Panna-Mukta and Tapti fields will continue to be sold to the state-owned Gas Authority of India Ltd. (P.GAI) if BG becomes the operator.
"The contract with Gas Authority of India will remain for the life of the fields. There won't be any change in the original sales contract," Shaw said.
He added that BG India will try to double the current output from Panna-Mukta and Tapti fields by 2004.
"That will be the best case scenario depending upon the overall domestic demand for oil and gas," Shaw said.
Production from Panna-Mukta and Tapti fields totalled an average of 70 million standard cubic feet of natural gas a day and 8,200 barrels of crude a day in the year to March 31, Shaw added.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dowjones.com

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

Enron sells Indian oil and gas assets to British operator

10/03/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SINGAPORE (AP) - Enron Oil and Gas India Ltd. said Wednesday that it has sold its Indian oil and gas assets to the United Kingdom's BG Group PLC for dlrs 388 million.
Enron Oil and Gas India - a subsidiary of U.S. energy giant Enron Corp. - held a 30 percent stake in the Tapti gas field and Panna-Mukta oil and gas field.
It also held a 62.64 percent interest in a major gas and oil exploration license.
"The sale is subject to completion of arrangement with joint-venture partners," an Enron spokesman said.
He said BG is making arrangements with Enron "to continue as operator."
State-owned Oil & Natural Gas Corp. holds a 40 percent stake in the Panna-Mukta and Tapti fields, while the other 30 percent is owned by Reliance Industries Ltd.
Energy analysts have said Enron Oil and Gas India is likely to have undersold its oil and gas assets.
Earlier this year, the state reportedly bid dlrs 400 million for Enron's Indian oil and gas assets, only to have the bid rejected. Analysts said Enron was unlikely to settle for anything less than dlrs 600 million for its 30 percent stake in the venture.
Analysts say the sale may herald Enron Corp.'s departure from the controversial Dabhol Power Project - India's largest private power plant - of which Enron Corp. has a 65 percent controlling stake.
The dlrs 3 billion Dabhol project has been mired in financial disputes when its main customer, the Maharashtra State Electricity Board, failed to pay several of its bills.
"This is unrelated to Dabhol," the spokesman said, however. "We had expressed an interest (in selling the oil and gas assets) before the Dabhol problems had begun."
(dj/hp-ep)

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

Enron Confirms India Oil, Gas Assets Sale To BG Grp

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

SINGAPORE -(Dow Jones)- Enron Oil and Gas India Ltd., a subsidiary of U.S. energy major Enron Corp. (ENE), confirmed Wednesday that it has sold its Indian oil and gas assets to the U.K.'s BG Group PLC (BRG) for US$388 million.
EOGIL held a total 30% stake in the Tapti gas field and Panna-Mukta oil and gas field and a 62.64% interest in the CB-OS/1 exploration license.
"The sale is subject to completion of arrangement with joint-venture partners," an EOGIL spokesman said. "BG is making arrangements with EOGIL to continue as operator."
State-owned Oil & Natural Gas Corp. (P.ONG) holds a 40% stake in the Panna-Mukta and Tapti fields, while the other 30% is owned by Reliance Industries Ltd. (P.REL).
Energy analysts have said EOGIL is likely to have undersold its oil and gas assets.
Earlier this year, ONGC reportedly bid US$400 million for Enron's Indian oil and gas assets, only to have its bid rejected. Analysts said Enron was unlikely to settle for anything less than US$600 million for its 30% stake in the venture.
The EOGIL spokesman declined to comment on the issue, saying the size of bids reported in the press were "speculative."
The spokesman also declined to comment on reports that ONGC was positioning itself to be operator.
Analysts have said EOGIL's offloading of its oil and gas assets in India may herald Enron Corp.'s departure from the controversial Dabhol Power Project - India's largest private power plant - of which Enron Corp. has a 65% controlling stake.
The US$3 billion Dabhol project has been mired in financial disputes when its main customer, the Maharashtra State Electricity Board, failed to pay several of its bills.
"This is unrelated to Dabhol," the spokesman said. "We had expressed an interest (in selling the oil and gas assets) before the Dabhol problems had begun."
-By Sri Jegarajah, Dow Jones Newswires; 65-415-4066; sri.jegarajah@dowjones.com -0- 03/10/01 09-20G

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

BG Group to Buy Enron India Assets for $388 Million (Update4)
2001-10-03 12:30 (New York)

BG Group to Buy Enron India Assets for $388 Million (Update4)

     (Adds BG closing share price in the fifth paragraph, Enron
shares in the sixth, BG comment in the 15th.)

     London, Oct. 3 (Bloomberg) -- BG Group Plc, the onetime U.K.
natural gas monopoly, agreed to buy Enron Corp.'s oil and natural
gas fields in India for $388 million, its biggest purchase to date
in a bid to fill the nation's growing energy shortage.

     India's gas production fell 11 percent to 1999 from 1997 as
Oil & Natural Gas Corp., the state explorer, made no significant
discoveries in 15 years. Insufficient supplies of gas have hurt
growth in the country's fertilizer and chemicals industries and
hampered upgrading of its power plants, still mostly coal-fed.

     Domestic bureaucracy has already thwarted efforts in India by
Electricite de France and Cogetrix Energy Inc., which have pulled
out, while Enron is locked in a price dispute with authorities.
The government is the sole buyer of gas and power from producers
and the sole seller to distributors.

     ``BG has gotten assets in an undersupplied market for a
reasonable price,'' said Roger Richards, who helps manage $12
billion at Prudential Bache in London. ``True, there's general
concern about the state involvement. But if you get your foot in
the door, stay and work hard, you'll enjoy returns.''

     BG shares fell 2.5p, or 1 percent, to 261p in London. BG
shares over the past year have risen 1.1 percent, while the 11-
member FT-SE All-Share Oil & Gas Index has fallen 9.6 percent.

     Enron shares rose as much as $2.84, or 9.3 percent, to $33.45
in New York.

     The government expects a gas deficit to triple in the next
six years unless new wells are drilled or existing fields expand
sales. BG, with 70 percent of its reserves as gas, is pushing to
sell the fuel in markets from the U.S. to Asia. At Enron, the sale
is part of a drive to end pumping oil and gas and focus on energy
trading.

                       Core Area

     ``The deal crystallizes India as a new core area of
operations,'' said David McManus, a BG executive vice president,
in an interview. ``India's gas demand is expected to grow by half
over the next 10 years, while its gas production is falling. We
aim to bridge this huge gap in some part.''

     The operations include a 30 percent stake in the Tapti gas
field and the Panna/Mukhta oil and gas field, as well as 63
percent of an untapped deposit on the west coast of India. The
assets hold more than 170 million barrels of oil and gas, BG said.

     ``They're supplementing their existing gas business in India
with new reserves,'' said Anthony Eccles, an analyst at Dresdner
Kleinwort Wasserstein in London. ``That justifies the price they
agreed to pay.''

     BG controls Gujarat Gas Co., which supplies gas to customers
in the Gujarat state, and owns half of Mahanagar Gas Ltd., which
serves Mumbai. It also is building a liquefied natural gas plant
in Gujarat.

     The Gas Authority of India is the monopoly buyer of gas from
the fields and the seller of the fuel to BG's ventures. While the
fields' existing output has been fully contracted to the Gas
Authority, the company will negotiate a right to bypass it with
additional production, McManus said.

                        Commitment

    ``They must be committed to getting additional gas out of the
ground'' to make the investment pay off, said Iain Reid, an
analyst at UBS Warburg. ``This is the rationale for the deal.''

     The acquisition is conditional on whether BG will be approved
as the fields' operator, the company said.

     BG will invest ``hundreds of millions'' of dollars to double
production in the Tapti field by 2004 if the other two partners in
the venture, Reliance Industries Ltd. and ONGC Ltd., contribute as
well, said Nigel Shaw, chief executive officer of BG India Pvt.
     ``BG is ready to play its part,'' he said.

     Lehman Brothers advised BG on the acquisition, McManus said.
     The agreement ``represents a significant step for Enron in
selling assets not integrated into our wholesale or retail energy
businesses,'' Enron president for exploration and production Jeff
Sherrick said in a statement.

     The assets being sold to BG exclude Enron's Dabhol Power Co.
project in India, a $3 billion venture entangled in a nine-month
payment dispute with its state-run buyer. Enron has said it wants
to sell its 65 percent share of Dabhol, which is owed $64 million
by the Maharashtra State Electricity Board.

     Both Enron and BG said the sale of gas fields are unrelated
to Dabhol's troubles. McManus declined to say whether BG would be
interested in buying Dabhol.

     Before agreeing with BG, Enron rejected bids from its Indian
venture partners, ONGS and Reliance, as well as from the nation's
biggest refiner, Indian Oil Corp.

                         Competition

     BG faces competition from other companies eager to set foot
in the Indian gas market.

     Both Royal Dutch/Shell Group, Europe's largest oil company,
and Indian state-owned energy companies are developing LNG
terminals in Gujarat, whose coast faces Oman across the Arabian
Sea.

U.S. Supreme Court Questions Reach of Federal Energy Regulators
2001-10-03 16:37 (New York)

U.S. Supreme Court Questions Reach of Federal Energy Regulators

     Washington, Oct. 3 (Bloomberg) -- The U.S. Supreme Court
considered how far federal energy regulators can push electric
utilities to make their power lines available to competitors.

     The nine justices heard oral arguments today on a landmark
1996 federal order requiring utilities to provide equal access to
their power transmission networks. Regulators say giving
competitors access to the power grid formerly run by utilities is
key to opening the power business to competition.

     New York and other states say the Federal Energy Regulatory
Commission order infringed on state authority and could prevent
states from making sure power goes to their neediest customers
during shortages. Power trader Enron Corp. takes the opposite
view, saying the order didn't go far enough to ensure competition.

     ``We're trying to protect the rates and services for the 127
million customers in this country,'' Lawrence Malone, New York
State Public Service Commission general counsel, told the court.

     The justices offered no clear indication of how they will
rule, and several struggled to understand the technical issues of
grid mechanics.

     ``I don't even know how this works, all this blocking,
scheduling business,'' Justice Stephen G. Breyer said during a
discussion of ways utilities can discriminate against competing
power suppliers.

     The question is whether a 1935 law gives FERC authority to
enact the rule, which is targeted at states that have opened their
energy markets to competition, or about half the nation.
     The court is expected to rule by the end of June.

                       Protecting Hospitals

     A ruling against the commission could halt the nation's
advance toward opening to competition the electricity business,
which had $226.5 billion in U.S. sales in 2000, experts said.

     ``If the court enshrines some limitations on FERC's
authority, it will create confusion and it will, at least for a
while, slow change in the industry,'' said James Hoecker,
commission chairman from 1997 until early this year.

     Government lawyers dismissed concerns that the transmission
rule might prevent states from ensuring that customers such as
hospitals receive power if the system gets crowded.

     The rule says utilities can discriminate based on the need
for power, while they can't favor transmission to their own
customers over that of a competitor.

     ``They could protect hospitals, that sort of thing,'' said
Edwin Kneedler, the Justice Department's deputy solicitor general.

                          Enron Argument

     Enron lawyer Louis Cohen argued that the commission issued
the transmission order in 1996 after finding ``endemic, undue
discrimination'' by traditional utilities. Because not all
utilities must open their lines, FERC still is exempting about 60
percent of traffic from the rule, he said.

     Houston-based Enron, the nation's largest energy trader,
needs to be able to send power through lines in states that aren't
open to competition so it can deliver power to customers in
neighboring states that have open markets, Cohen said.

     ``This is a problem only FERC can solve,'' Cohen said. He
asked the justices to tell the commission it has authority to
order these utilities to provide equal line access.

     The commission can address claims of discrimination by
utilities in states without open markets on a case-by-case basis,
Kneedler said in response to questions from the court.

                      Regional Organizations

     The commission has moved further since the 1996 order to
ensure that power-sellers have equal access to transmission lines
and that utilities aren't protecting the market for their own
power plants.

     Recognizing that competitive power suppliers and marketers
won't get into the business if they're not sure they can fairly
sell power through utility lines, the commission has told
utilities to join regional transmission organizations, or RTOs.
The RTOs would independently control the grid even in states that
haven't opened their energy markets to competition.

     Last week the commission told utilities to join an RTO by
Dec. 15 or risk losing the authority to set their own rates based
on market conditions, or having merger approvals delayed.

     Commission Chairman Pat Wood said recently he hopes Congress
will step in if the high court rules against FERC.

Enron to Sell Oil, Gas Fields in India to BG Group (Update1)
2001-10-03 16:13 (New York)

Enron to Sell Oil, Gas Fields in India to BG Group (Update1)

     (Adds closing share price.)

     Houston, Oct. 3 (Bloomberg) -- Enron Corp., which has been
fighting with India's Maharashtra state for nine months over power
payments, agreed to sell oil and natural-gas fields in the South
Asian country to the U.K.'s BG Group Plc for $388 million.

     Houston-based Enron, the biggest energy trader, has been
selling assets, including infrastructure projects such as
pipelines and power plants, to focus on trading and brokering
energy and other commodities. Enron wants to sell its Dabhol Power
project in India, a $3 billion venture it says is owed $64 million
by the state's electricity board.

     The agreement ``represents a significant step for Enron in
selling assets not integrated into our wholesale or retail energy
businesses,'' Jeff Sherrick, Enron president for exploration and
production said in a statement.

     Shares of Enron jumped $2.88, or 9.4 percent, to $33.49,
paring this year's decline to 60 percent. BG fell 2.5p to 261p in
London.

     BG, the U.K.'s former natural-gas monopoly, got a 30 percent
stake in a gas field and an oil and gas field, as well as 63
percent of an untapped deposit on the west coast of India. They
hold more than 170 million barrels of oil and gas, BG said.

     ``BG has gotten assets in an undersupplied market for a
reasonable price,'' said Roger Richards, who helps manage $12
billion at Prudential Bache in London. ``True, there's general
concern about the state involvement. But if you get your foot in
the door, stay and work hard, you'll enjoy returns.''

     Both Enron and BG said the sale is unrelated to Dabhol's
troubles. McManus declined to say whether BG would be interested
in buying Dabhol.

     Before agreeing with BG, Enron had rejected bids from its
Indian venture partners, ONGS and Reliance Industries Ltd., as
well as from the nation's biggest refiner, Indian Oil Corp.

     BG controls Gujarat Gas Co., which supplies gas to customers
in the Gujarat state, and owns half of Mahanagar Gas Ltd., which
serves Mumbai. It also is building a liquefied natural gas plant
in Gujarat.


As you may be aware, I am conducting an in-house seminar on compliance with labor and employment laws and the practice of good employee relations.  This 4 hour, interactive program is tailored to Enron's culture and ETS-specific issues.  Stan Horton and the ETS Division Heads have mandated attendance for all Managers and above, and for those persons who have supervisory responsibility.

	The main goals of this session are to help management avoid employment-related litigation, maintain a trouble-free workplace, and maximize employee productivity.  In order to accomplish these goals, it is imperative to understand the intricate connection between sound management practices and legal requirements.

	Some of the topics covered are: maintaining a discrimination and harassment free workplace; the hiring process; compensation issues; performance management; lawful terminations; and all related topics that are necessary to effectively control the risks associated with managing a workforce.

	There are three sessions open in October -- the 3rd, 17th, and 31st.  They run from 8:00 to Noon.  Please
contact my assistant, Miranda Southard, by e-mail to enroll in one of these sessions.  She will then provide you the exact location and other particulars.

	Feel free to let me know if you have any questions.

Brian


part II

 <<003732481.NYW>>

Please advise when received.

[INFO] -- Content Manager:
This message is for the named person's use only.  It may contain
confidential, proprietary or legally privileged information.  No
confidentiality or privilege is waived or lost by any mistransmission.
If you receive this message in error, please immediately delete it and all
copies of it from your system, destroy any hard copies of it and notify the
sender.  You must not, directly or indirectly, use, disclose, distribute,
print, or copy any part of this message if you are not the intended
recipient. CREDIT SUISSE GROUP and each of its subsidiaries each reserve
the right to monitor all e-mail communications through its networks.  Any
views expressed in this message are those of the individual sender, except
where the message states otherwise and the sender is authorised to state
them to be the views of any such entity.
Unless otherwise stated, any pricing information given in this message is
indicative only, is subject to change and does not constitute an offer to
deal at any price quoted.
Any reference to the terms of executed transactions should be treated as
preliminary only and subject to our formal written confirmation.

 - 003732481.NYW


I am writing you to inform you of an incident that occurred at the NCL
FRACTIONATOR this week. I would like to go into detail on what occurred to
ensure that everyone has a good understanding of what kind of employee is
involved and the potential for further intentional acts like this from this
disgruntled employee. I would like to have some feedback on this to ensure
that we take the necessary means to ensure that we cover all of the basis.

On Wednesday 1/31/01 we had a PSV go off on one of our process vessels due
to a plant upset. I was notified that the incident was minimal with no
spill or Hydrocarbon release which exceeded the reportable quantity. I
quickly drove to the sight and investigated the incident, I found the
information to be true. There was no detectable hydrocarbon, only a small
amount of rust on the ground which was ejected from the inside of the
emergency stack. I notified the head plant operator & requested an incident
report to be filled out, which he has since delivered to me. I checked the
stack chart and noticed only a small release. At this point I felt that
there was no reason to call in a breakdown to the APCD because we had
neither exceeded the reportable quantity, and the equipment did as it was
designed breaking no rules. I then assigned a clean up crew and an employee
to inspect the PSV's and ensure the proper operation of the equipment
involved. All was cleaned up and the equipment serviced properly, and I am
currently going over the incident report with our safety coordinator.

During the clean up on the day of the incident I was approached by our
Utility Operator Clark Layshot who was on during the incident. Clark was
very upset and was pointing the finger at Mark Stringer who was the Head
Operator on duty. Clark said that the PSV had gone off for an hour and had
released over 5000 gallons of NGL. I new this to be untrue for many
reasons, for one I responded quickly enough that the liquid would still
have been there on the ground, the chart showed exactly the time of
starting and stopping of the release which was just a matter of minutes, I
also new because I was on the phone with the others involved on my drive
out to the plant. I listened to Clarks remarks and let him know that I was
investigating the incident and the discussion was ended.

The following day while I was giving a operational tour to Eugene Ogorman,
I was confronted once more by Clark who said he needed to speak to me
immediately, so I excused myself and met with Clark. Clark said that I
could either have 5 hours or 2 weeks, I asked Clark what he meant and he
said that he was giving his notice. I then asked him why when he became
extremely hostile and said in many words that he was very unhappy! He told
me that everyone was liars, that ENRON was a horrible company, that the
facility was going to blow up and how he was going to kick some of the
employees asses. This went on for a while with numerous other extremely
intense encounters. I then notified my boss, Rick Suderman who in turn made
the appropriate calls.

Today we were the recipients of an incident investigation performed by the
SJVU APCD. We were met by Mike Oldershaw of the APCD who typically does our
compliance testing. Mike informed us that his office was notified of an
incident which released for 48 hours NGL through our west emergency stack.
They were also told that the ground was saturated with hydrocarbon and
insinuated that EOTT/ETS operations was trying to hide this.

Myself and Rick Suderman accompanied Mike through the complete
investigation which included inspection of the release sight, inspection of
the operator logs, inspection of the stack flow charts, and an emission
inspection of the components involved. Mike expressed to us that who ever
called in was disgruntled and obviously fabricated a story to try and
create problems for the company. We went over the permit for the usage of
the emergency stack and all agreed that we were not in violation. Mike was
not sure if a breakdown needed to be reported, so he agreed to call us with
the final outcome of this investigation once he discussed it with his boss.

I am happy to say that after all of this Mike Oldershaw called me back and
said that he had talked to his boss and they both agree that we followed
the rules and none were broken. Mike said that we were in compliance and
there would be no NOTICE OF VIOLATION, the equipment did as it was designed
and the operations group worked well in controlling and isolating the
situation. Mike said that he feels very good about what EOTT and ETS is
doing and the approach that we are taking to ensure compliance. I have
since notified Larry Campbell who informed me to call John steenberg and to
send an email to all of you.

If there are any questions please contact me, thanks for all of your help,
Scott


Glad you could make it yesterday.  I don't play (at least not in front of
others), so I do look for golfers from time to time.  I will keep your number
handy!

	Enron Capital Management

	From:  David Baumbach                           10/17/2000 09:32 AM

To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Golf Tourney

Sally, I really appreciate being able to play on your behalf in the
tournament yesterday.  It was a very nice course and we had a great time.
It's always nice to interact with your peers outside of work.  If you ever
need an extra player again ... my clubs are in the car.

Thanks again.

Dave


Can you please forward to me your telephone number.

Thanks.
Twanda


We lost 1/2 of the money on our west basis positions.
We lost the other 1/2 on fixed price length.


Sorry I never called yesterday...I had turned my phone off and didn't realize
you'd called until last night.  I'm still at work right now and therefore am
extremely tired.  Hope you got everything you needed to accomplished this
weekend.  I had a good time at the game and, thanks to Travis's pledge class
reunion, have come to the conclusion that 27-28 is a better age range for
me.  There young enough to excuse being single due to career focus and still
old enough to know who they are and what they want.  Some critical things
happen in those 3-5 years from a man's late twenties to early thirties that
can expose so many "issues" (examples of which I got to see several of on
Saturday).

Talk to you soon,
Susan

Are you and Doug going to OU?


very funny today...during the free fall, couldn't price jv and xh low enough
on eol, just kept getting cracked.  when we stabilized, customers came in to
buy and couldnt price it high enough.  winter versus apr went from +23 cents
when we were at the bottom to +27 when april rallied at the end even though
it should have tightened theoretically.  however, april is being supported
just off the strip.  getting word a lot of utilities are going in front of
the puc trying to get approval for hedging programs this year.

slafontaine@globalp.com on 03/13/2001 11:07:13 AM
To: jarnold@enron.com
cc:
Subject: utilites?

hey johnny. hope all is well. what u think hrere? utuilites buying this break
down? charts look awful but 4.86 ish is next big level.
jut back from skiing in co, fun but took 17 hrs to get home and a 1.5 days to
get there cuz of twa and weather.


---------------------- Forwarded by Catherine Clark/HOU/ECT on 09/29/2000
09:22 AM ---------------------------

	Enron Global Finance

	From:  Catherine Clark                           09/28/2000 04:50 PM

To: Jonathan McKay/CAL/ECT@ECT, jeffrey.w.dellapina@chase.com
cc: John Griffith/Corp/Enron@Enron, Soma Ghosh/HOU/ECT@ECT, Brian
Kerrigan/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT
Subject: TD volumes

Jon: I'm attaching TD's volumes (in GJs) for swap 1 with Enron Canada.  The
fixed price is $5.983.  Just to be clear, these are how the volumes add up:
12/29/2000 422,002 GJ
03/29/2001 422,002 GJ
06/29/2001 422,002 GJ
90/27/2001 25,058,472 GJ

Jeff: can you size up the fixed price for the swap between ENA and Chase to
reflect your spread on the above volumes?

John:  you can use the same volumes, but at the price you get from Jeff
(which you will pass on to Enron Canada in our internal swap).

I will e-mail you RBC's volumes as soon as I confirm that they have locked in
an interest rate (their volumes will be slightly different from TD's).
Please call me with any questions.  Thanks,
-Catherine
(713) 853-9943

PS:  TD has links to other databases embedded in this spreadsheet.  Before
opening in Excel, go to a blank sheet and set to manual calculation (go to
Tools, then Options)

---------------------- Forwarded by Catherine Clark/HOU/ECT on 09/28/2000
04:21 PM ---------------------------

hulla@tdsecurities.com on 09/28/2000 04:13:20 PM
To: Pushkar.shahi@enron.com, catherine.clark@enron.com
cc:
Subject:

Final, final version (I hope)....

(See attached file: Enron IRS.xls)

 - Enron IRS.xls


---------------------- Forwarded by John Arnold/HOU/ECT on 02/12/2001 07:29
AM ---------------------------

"Mark Sagel" <msagel@home.com> on 02/11/2001 08:00:51 PM
To: "John Arnold" <jarnold@enron.com>
cc:
Subject: Natural update

FYI
 - ng2001-0211.doc


I thought Rogers signed a long time ago but check with Oxley

 -----Original Message-----
From: 	Presto, Kevin
Sent:	Thursday, May 17, 2001 4:41 PM
To:	Lavorato, John
Subject:	Rogers

Did Rogers sign his contract or is he still holding out?


Alan --

I assume that you will lead Enron's response to EPSA's comments?  Should we have a discussion of this filing before the EPSA meeting on Friday?

Pls give me a call.

Jim

 -----Original Message-----
From: 	"Jackie Gallagher" <JGallagher@epsa.org>@ENRON
Sent:	Wednesday, October 31, 2001 9:28 AM
To:	acomnes@enron.com; Hawkins, Bernadette; Nersesian, Carin; Nicolay, Christi L.; Fulton, Donna; Steffes, James D.; Scheuer, Janelle; Hartsoe, Joe; Shelk, John; Noske, Linda J.; Robertson, Linda; Alvarez, Ray; Shapiro, Richard; Novosel, Sarah; Mara, Susan; Lindberg, Susan; Hoatson, Tom
Subject:	EPSA Leave-Behind on Market-Based Rate Authority- Conf. Call	Friday, 11:00 a.m.

MEMORANDUM

TO: Regulatory Affairs Committee
       Power Marketers Working Group

FROM: Jim Steffes, Regulatory Affairs Committee Chair
            Bob Reilley, Power Marketers Working Group Chair
            Julie Simon, Vice President of Policy
            Erin Perrigo, Manager of Policy

DATE: October 31, 2001

RE: EPSA Leave-Behind on Market-Based Rate Authority
      ?Conference Call on Friday, November 2nd at 11:00 a.m.
       (EST)

Last Friday, we held a conference call to discuss EPSA's position on possible changes to FERC's market-based rate authorization standard and the Commission's recently released staff report outlining several alternatives to the currently used hub-and-spoke method.  Please review the attached draft, which has been extensively revised based on last week's call.  We have scheduled a conference call on Friday, November 2nd at 11:00 a.m. (EST) to discuss this draft and hope to be able to go forward after that call.  To access the call, please dial 1-800-937-6563.  Ask for the Julie Simon/EPSA Call. If you have any questions, comments or edits before the call, please contact Julie Simon at 202-628-8200 or jsimon@epsa.org.

Attachment

 - MBR leave behind draft 2.doc


Randy will you please get this to Jerry.

Please review.  And please call me after you have had a chance to review re
logistics.

---------------------- Forwarded by Dwight Beach/HOU/ECT on 01/30/2001 03:32
PM ---------------------------

"David Locascio" <dlocascio@bracepatt.com> on 01/30/2001 03:25:27 PM
To: <kcglc@alltel.net>
cc: "Jay Sonnenberg" <jsonnenberg@bracepatt.com>, <dwight.beach@enron.com>,
<gerald.nemec@enron.com>, <apalizzi@yahoo.com>
Subject: O&M agreements

Attached please find both blacklined and execution of the respective O&M
Agreements for the 2 facilities, excluding certain exhibits.  Jay Sonneburg
with Bracewell will be taking the execution copies with him in order to get
the 2 LLC's signature when Enron takes control of the LLCs.

Jay will attach Schedule 1 to each agreement which is a description of the
facilities.  My understanding is that Dwight will be forwarding electronic
versions of Schedule 2 - Permits and Schedule 3 - Budget for both
agreements.  All other schedules are already attached to the agreements
themselves.

Because I will be out of the office most of the day tomorrow in meetings and
Jay will have his hands otherwise very full at the closing, I would suggest
getting with me asap on Tues. if any material changes are needed.  At this
point I would not recommend changing any non-material changes.

I am available today to discuss at your convenience and can be reached at
(713) 221-1396.  Best regards.

David W. Locascio
Bracewell & Patterson, L.L.P.
711 Louisiana, Suite 2900
Houston, Texas  77002-2781
phone: 713.221.1396
fax:      713.221.2134
email: dlocascio@bracepatt.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.

 - Redline O&M AGREEMENT for LUMBERTON.doc
 - Execution Copy of O&M AGREEMENT for LUMBERTON.doc
 - Redline O&M Agreement for Elizabethtown.doc
 - Execution Copy of O&M Agreement for Elizabethtown.doc


TRADE DATE	NA GAS	NA POWER	TOTAL TRADE CNT
11/27/2001	2016	662	3834
11/26/2001	2093	655	3547
11/25/2001	14	22	36
11/24/2001	48	16	64
11/23/2001	17	38	376
11/22/2001	27	8	318
11/21/2001	2326	712	3540
11/20/2001	3393	689	4810
11/19/2001	3604	1047	5533
11/18/2001	54	15	69
11/17/2001	24	28	52
11/16/2001	2626	909	4791
11/15/2001	2838	1092	5136
11/14/2001	2553	865	5209
11/13/2001	2312	930	4791
11/12/2001	2609	833	4762
11/11/2001	26	10	37
11/10/2001	13	17	30
11/9/2001	1834	782	3654
11/8/2001	2376	937	4379
11/7/2001	3497	1542	6034
11/6/2001	3783	1547	6222
11/5/2001	3960	1581	6444
11/4/2001	25	10	36
11/3/2001	26	32	58
11/2/2001	3780	1199	5836
11/1/2001	3973	1493	6539

Regional breakdown:


---------------------- Forwarded by Patrice L Mims/HOU/ECT on 02/02/2001
12:57 PM ---------------------------

Patrice L Mims
02/02/2001 01:03 PM
To: Patrice L Mims/HOU/ECT@ECT
cc:
Subject: Re:What's Happening?

Hey girl,

How's it going?  Haven't had a chance to talk with you over the last two
days.  I went to get me hair done on Wednesday night and did not get home
until 11:00 p.m.  By the time I got the kids to bed, it was almost midnight
and I was sick about keeping them up that late.  Last night, I went to the
grocery store, came home and cooked my boys a good meal of ham, macaroni and
cheese and green beans.  After we relaxed for a while, we started getting
ready for their baths and we all went to bed around 8:30 p.m.  I was
exhausted from being out late Tuesday and Wednesday night.  I woke up around
1:00 a.m. and watched TV for a few minutes and went back to bed.   I was
tired.

This evening I made a nail appointment.  My nails look like "do-do".  I would
like to get a new set tonight, but we'll see if we get off early enough for
that.

Daddy sent me a e-mail today, he had two really bad days on Wednesday and
Friday, but he's scheduled to go in for more tests today.

Talk with you later!


April 24, 2001
Notice No.:  01-140

To:
All NYMEX Holdings, Inc. Stockholders

From:
Donna M. Talamo, Director
Office of the Corporate Secretary

Re:
List of Candidates for Election to the Board of Directors of NYMEX Holdings,
Inc.

Please be advised that the Office of the Corporate Secretary has received
declarations which qualify the following candidates to run for election to
the Board of Directors of NYMEX Holdings, Inc.  The election will be held on
Wednesday, May 23, 2001.

EQUITY  HOLDER
(THREE vacancies)
(Terms expiring 2004, 2003 and 2002)

Cataldo Capozza
Joseph Cicchetti
Steven Crystal
Stephen Durante
Steven Errera
Joel Faber
Gary Lapayover
Stanley Levin
David Lazarus
Michel Marks
John Moore
Stephen Renov
Robert Sahn
Sol Tanne
Howard Wolfson
James Zamora

FUTURES  COMMISSION  MERCHANT
(ONE vacancy)
(Term expiring 2003)

John McNamara  (JLMC)
Stanley Meierfeld (STAN)
Peter Meyer  (WIM)

PUBLIC
(ONE vacancy)
(Term expiring 2002)

George Burman
Melvyn Falis
Lee White

For your information, the candidates, forum will be held on Wednesday, May 9,
2001 in the Board Rooms of the Exchange.

A proxy statement(s) and proxy card(s) (formerly called ballots) in
connection with the election will be mailed to you on or about May 1, 2001.

If you have any questions regarding the aforementioned, you may contact me at
(212) 299-2372.

__________________________________________________
Please click on the link below to indicate you have received this
email.

"http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdo
c=(01-140)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.


----- Forwarded by Jeff Dasovich/NA/Enron on 03/19/2001 08:34 PM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	03/19/2001 08:25 PM

		 To: Katie Kaplan <kaplan@iepa.com>, "'Andy Brown (E-mail)'"
<ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'" <andybrwn@earthlink.net>,
"'Baker Carolyn (E-mail)'" <cabaker@duke-energy.com>, "'Bob Escalante
(E-mail)'" <rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'"
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'"
<curtis_l_kebler@reliantenergy.com>, "'Douglas Kerner (E-mail)'"
<DKK@eslawfirm.com>, "'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan
Smutny-Jones (E-mail)'" <smutny@iepa.com>, "'Jeff Dasovich (E-mail)'"
<Jeff.Dasovich@enron.com>, "'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John
Larrea (E-mail)'" <john.g.larrea@williams.com>, "'John Stout (E-mail)'"
<John_H_Stout@reliantenergy.com>, "'Julee Malinowski-Ball (E-mail)'"
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent
Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Kristin Vellandi
(E-mail)'" <kvellandi@pstrategies.com>, "'Lynn Lednicky (E-mail)'"
<lale@dynegy.com>, "'Marty Wilson (E-mail)'" <mwilson@pstrategies.com>,
"'McNally Ray (E-mail)'" <rmcnally@mcnallytemple.com>, "''Nam Nguyen'
(E-mail)'" <nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'"
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'"
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'"
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>,
"'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'"
<smara@enron.com>, "'Theo Pahos (E-mail)'" <tpahos@ppallc.com>, "'Tom Ross
(E-mail)'" <tross@mcnallytemple.com>, <rtemple@mcnallytemple.com>
		 cc: "'Carol H Hudson (E-mail)'" <Chudson@iepa.com>, "'Jan Smutny-Jones
(E-mail)'" <smutny@iepa.com>, "'Steven Kelly (E-mail)'" <steven@iepa.com>,
"'Bill Carlson (E-mail)'" <william_carlson@wastemanagement.com>, "'Bill Woods
(E-mail)'" <billw@calpine.com>, "'Bob Ellery (E-mail)'"
<bellery@spi-ind.com>, "'Bob Gates (E-mail)'" <bob.gates@enron.com>, "'Cody
Carter (E-mail)'" <cody.carter@williams.com>, "'Curt Hatton (E-mail)'"
<Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>,
"'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'"
<fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'"
<dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>,
"'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'"
<eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'"
<frank.derosa@gen.pge.com>, "'Frazier Blaylock (E-mail)'"
<frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'"
<Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'Jim
Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'"
<jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'"
<jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>,
"'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'"
<khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'"
<kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'"
<lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'"
<marty_mcfadden@ogden-energy.com>, "'Paula Soos'"
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'"
<rjhickok@duke-energy.com>, "'Rick S. Koebbe (E-mail)'"
<rskoebbe@powerworksinc.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>,
"'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'"
<steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>,
"'William Hall (E-mail)'" <wfhall2@duke-energy.com>
		 Subject: Re: Public Affairs Committee Conference Call Wednesday at 10:00 a.m.

Attached (and below) is a copy of the PR memo for this week's Public Affairs
Committee Conference Call. ?Katie will be sending out additional information
related to the call later today.

Thanks,
Jean

--
Jean Munoz
McNally Temple Associates
916-447-8186
916-447-6326 (fx)

March 20, 2001

PR UPDATE

To: ???IEP PR Committee
Fr: ???Ray McNally, Richard Temple, Jean Munoz, Tom Ross
Re: ???PR Update

Key Messages

? When it comes to the upcoming Senate Hearings all we are asking for are:
?Facts, Fairness and Accountability
? This crisis can only be solved if we all work together to find solutions
that increase supply and reduce demand
? IEP members are investing billions of private-sector dollars to buy,
modernize and build power plants in California
? Long term contracts are the way to protect consumers, and stabilize prices
? We need to create a stable regulatory and political environment
? California is not an island . and we import far more than we export

Target Briefings

? State Senate and Assembly Republican and Democrat Caucuses . Once Seeing
the light is revised

Collateral Materials

? California Journal Ad April . "We?re working around the clock to keep the
lights on"
? California Journal Ad May . Proposed theme: We?re part of the solution .
working to keep the lights on this summer.
? Seeing the Light Update (now called "Powerful Ideas") . Draft one being
circulated for approval. ?Once complete will distribute to capitol press
corps, statewide media, legislature, key federal policy makers
? Weekly distributions . SB 39x, outage standards
? Web-site . www.turnonthetruth.com, continue to update

Earned Media

? Teleconference briefings with press . On Fridays, or as needed
? Statewide and national media outreach . Ongoing
? Editorial Board Meetings . Proposed Topics: outage coordination and
maintenance standards; solutions need to increase supply and reduce demand,
California First. Targeting: Sacramento Bee, LA Times, San Francisco
Chronicle, San Jose Mercury News, Alameda News Group, San Diego Union Tribune
?  "Powerful Solutions" briefing for reporters and editorial boards ???
? Response to Senate Investigation . available to respond to TV and radio
media at press conference, and issued statement (IEP reaction covered by:
?KFBK am 1530; Metro Networks Radio; KCRA, NBC- 3; ?KTXL FOX-40; KXTV ABC
-10, National Public Radio, Associated Press, Sacramento Bee) ???
? Response to San Francisco Chronicle article . Op-ed drafted to be submitted
on behalf of the California Manufacturers and Technology Association. ?Letter
to the editor to be submitted on behalf of IEP.

Proposed Activities to Defend Industry

? Message training prior to Senate Investigative Hearing
? One on one meetings with key supporters
? Media tours of power plants
? Editorial board meetings

Media Contacts 3/12 d 3/19 (partial list):

? KFBK am 1530, Mike Ward
? Metro Networks Radio, Don Andrews
? KCRA, NBC- 3, Kevin Riggs
? KTXL FOX-40
? KXTV ABC d10
? KPIX, CH. 5 San Francisco
? National Public Radio, Capitol Morning Report, Mike Montgomery
? Craig Rose, San Diego Union Tribune
? David Ward, Bloomberg
? Dan Weintraub, Sacramento Bee
? George Spencer, Restructuring Today
? Jeff Barber, McGraw Hill
? Gretchen Wenner, Business Journal
? Don Thompson, Associated Press
? Jennifer Coleman, Associated Press
? Jennifer Warren, Los Angeles Times
? KGO Radio, San Francisco
? Leslie Burkman, Riverside Press Enterprise
? Jeff McDonald, San Diego Union Tribune
? Mike Taugher, Contra Costa Times
? Greg Lucas, San Francisco Chronicle
? Jennifer Bjorhus, San Jose Mercury News
? Phil Yost, San Jose Mercury News Editorial Writer
? Steve Lawrence, Associated Press
? Brandon Bailey, San Jose Mercury News

on 3/19/01 10:09 AM, Katie Kaplan at kaplan@iepa.com wrote:

> Greetings:
>
> We will have a Public Affairs conference call on Wednesday at 10:00 PST to
> discuss the game plan for the next week, distributions and other related
> issues. Agenda and updated memo to follow later today.
>
> Call in number for Wednesday 10:00 a.m. PST:
>
> 1-800-486-2460
> The Pass-code is:
> 120895
>
> Katie Kaplan
> Manager of State Policy Affairs
> Independent Energy Producers Association
> (916) 448-9499
>
>
>
>

 - IEP/PR Memo 3/20


Lunch will be served at 11:30, QBR starts at 12:00.