Los Angeles Power Firm Chief Lists Solutions for Crisis
Los Angeles Times, 05/27/01

Cutting Kilowatt Hours / Californians see rewards in conservation
The San Francisco Chronicle, 05/27/01

W and the Coast: California dreaming
Houston Chronicle, 05/27/01

Houston's top execs in energy / Oil and gas claims 8 of 10 highest- paid
Houston Chronicle, 05/27/01

Enron's Indian Unit Dabhol Rejects Payment From State in Quarrel Over Bills
Dow Jones Business News, 05/27/01

SAUDI ARABIA: UPDATE 3-Saudi seen revealing gas leaders before June signing.
Reuters English News Service, 05/27/01

Oil Cos Told To Accept Aramco As Gas JV Partner -Report
Dow Jones Energy Service, 05/27/01

India: Indian lenders of DPC to participate in Singapore meet
Business Line (The Hindu), 05/27/01

Senator Calls for Hearings Into Energy Regulators' Moves
The New York Times, 05/26/01

Enron's secret bid to save deregulation / PRIVATE MEETING: Chairman pitches
his plan to prominent Californians
The San Francisco Chronicle, 05/26/01

USA: Beverly Hills crowd unmoved by Enron pitch - paper.
Reuters English News Service, 05/26/01

Enron courts prominent Californians at secret meeting
Associated Press Newswires, 05/26/01

Enron's Dispute With Utility In India Grows More Tangled
The New York Times, 05/26/01

India: MSEB requests MERC to rescind Dabhol PPA
Business Line (The Hindu), 05/26/01

DPC refuses to take MSEB's bill for April
The Economic Times, 05/26/01

Ganske Has Own War Chest To Take On Harkin for Senate
Omaha World-Herald, 05/26/01

Senate confirms Texan to energy commission
Houston Chronicle, 05/26/01

DUMB TALK / California AG's remarks crude and deceptive
Houston Chronicle, 05/26/01

Enron sends staff on deputation
Business Standard, 05/26/01

Power firm vetted Bush energy regulators
The Guardian, 05/26/01

Changes in Senate could offer state relief
The San Diego Union-Tribune, 05/26/01

California; Metro Desk
Los Angeles Power Firm Chief Lists Solutions for Crisis
KURT STREETER
TIMES STAFF WRITER

05/27/2001
Los Angeles Times
Home Edition
B-3
Copyright 2001 / The Times Mirror Company

A Texas business executive whose company has profited enormously from
California's energy crisis says California needs more deregulation, not less.
Kenneth Lay, the head of Houston-based Enron Corp., handed out a four-page
plan detailing his solution to California's energy crisis at a meeting with
Los Angeles Mayor Richard Riordan and other state business and political
leaders at a Beverly Hills hotel May 17.
The report details several ways to solve California's energy crisis.
"Get deregulation right in California," it reads. "California never
deregulated. . . . There is more regulation than ever."
Among the document's other points are calls for consumers to pay the billions
of dollars in debt the state's public utilities have incurred, and an
assertion that federal investigations into price gouging by private firms
such as Enron are contributing to the problems.
Lay also suggests increasing conservation efforts, partly through pricing
that would cost consumers more for using electricity during peak times.
Reached for comment, Steve Maviglio, a spokesman for Gov. Gray Davis, called
the paper a "generator's wish list," saying it goes against the governor's
policy on the energy crisis.
"The governor is not calling off the dogs," Maviglio said Saturday. "To
suggest that ratepayers should shoulder the entire burden of deregulation is
totally the opposite of what the governor is calling for."
Lay, one of President Bush's biggest campaign contributors and a key advisor
on the Bush energy plan, has built a powerful energy company by buying
electricity from generators and then selling it. Enron reported first-quarter
revenue of $50.1 billion, nearly a 281% increase over the same quarter last
year.
Lay met with Riordan and luminaries including actor Arnold Schwarzenegger and
financier Michael Milken--plus about a dozen others--at the Peninsula Hotel.
Enron spokesman Mark Palmer said: "Our position is simple." California needs
to "increase the supply of energy and decrease the demand."
*
Associated Press contributed to this story.

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

NEWS
Cutting Kilowatt Hours / Californians see rewards in conservation
Joe Garofoli
Chronicle Staff Writer

05/27/2001
The San Francisco Chronicle
FINAL
A.21
(Copyright 2001)

For months, Californians have been engaging in acts so egregious that Beltway
types fear they threaten "the American way" of life.
Like conserving energy. In huge numbers.
The Bush administration has been fretting about how to protect our way of
life in the face of energy shortages, but many Californians will tell you
they haven't sacrificed much of anything while knocking 20 percent or more
off their power bill. Not unless you count having two refrigerators to be a
constitutionally protected right.
"People who complain about the cost of energy just aren't thinking hard
enough for ways to save," said Jerri Linn Phillips. She cut 30 percent from
her power bill by unplugging unused appliances in her one-bedroom apartment
in San Francisco's Japantown.
To the amazement of the rest of the energy-guzzling country, all this
personal sacrifice hasn't curled the stereotypically soft Californians into
fetal positions. In fact, with electricity costs about to go up, many are
ready to evangelize about their relatively pain-free conservation.
"The real hardship has been the fear of the unknown," said P.J. Astrup, an
Alameda resident whose most recent cross to bear was finding a gallon of
curdled milk in his second refrigerator.
"Sure, the lights going out for a couple of hours may have perturbed a few
people (in California), but it hasn't been that bad yet."
That doesn't mean conserving has been easy. It's been a hassle to change
bulbs and air-dry clothes and nag the kids: "Turn off those lights. Don't you
know there's an energy crisis?"
Still, a Field Poll this month found that 63 percent of Californians surveyed
have cut at least 10 percent of their energy usage since the start of the
crisis; nearly one in four has cut 20 percent or more. The poll was taken
after a study found that Californians use less electricity than their
counterparts in every state but one -- Rhode Island.
Not every California conservationist is as rabid as John Muir. While the more
ambitious bought meter readers to measure the output of every appliance in
the house, the rest just unplugged their coffeemakers and let the laundry
pile up an extra week until there was a full load.
A few, like Rosie Sorenson, make a game of con
serving.
When the Richmond resident feels like rewarding herself for a conservation
job well done, she'll say, "Tonight, I'll treat myself - - I'll read with
real electricity," instead of using a battery- powered lamp.
Or she'll plug in two, count 'em, two bulbs in the panel above the bathroom
mirror in her 1,150-square-foot condominium.
"We're very privileged as a country," said the self-described "recovering
psychotherapist" and budding novelist. "We have so much. But if we rally
together, we should be able to get through this."
Flipping circuit breakers, air-drying clothes and performing a dozen other
conservation tasks has helped Sorenson drop her electricity usage 41 percent
from January to March. Next up: She's going to ask the head of her condo
complex to turn down the heat in one of its three pools and -- horrors! --
hot tubs. "We don't need all that," Sorenson said.
Conservation chutzpah like that could be construed as compromising the
American way of living in another part of the country. Middle America hears
"conservation" and thinks, "Put some canned peaches in the root cellar. We
got another Depression coming."
A better term would be "energy efficient," said Richard Perez, editor of the
14-year-old magazine Home Power, a bible for folks living off the power grid.
While "conservation" connotes "doing without" to the unconverted, everybody
feels good about making their lives more "efficient."
"I come from a no-sacrifice kind of place," said Perez, who hasn't turned off
his microwave, VCR or any other appliance, even though his Ashland, Ore.,
home is powered exclusively by renewable energy sources. "And we haven't met
a California home yet where we can't cut the utility costs 20 percent."
Conservation is a fun game the whole family can play. Jeff Goodrich deputized
his three children as "energy monitors" at the beginning of the energy
crisis. Their reward for closing doors and turning off the TV surge
protector: Every month, they get to keep whatever the family saved over last
year's energy bill. Last month, each kid got $22.
"I'd rather give the money to them than Enron or some Texas company," said
Goodrich, who lives in Greenbrae.
"I'm always amazed by the response people have to Californians," he said. "It
seems like they're always ready to jump on us for being nuts. But
conservation is about preserving our standard of living, not doing without."

PHOTO; Caption: Leigh, 8, (left) Grace, 6, and Michael, 10, showed off their
reward for being household energy monitors for their parents, Mary and Jeff
Goodrich (background). / John O'Hara/The Chronicle

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

OUTLOOK
Opinion
W and the Coast: California dreaming
CRAGG HINES
Staff

05/27/2001
Houston Chronicle
2 STAR
2
(Copyright 2001)

LOS ANGELES - Welcome to California, Mr. President. You're a brave man.
They've been saying terrible things about you out here. Some of them are even
true.
When you arrive Monday for your first visit to the Golden State since the
election, try to blend in. Take it from me, you'd look fabulous in
Birkenstocks. Don't call it "La-La-Land." But do say, "dude," a lot. (See
below.)
Remember these people didn't like you that much before the lights began to
flicker. Key figures: Gore 54, Bush 41. And after all that work and money and
those nasty, hot visits last year to the raisin sheds in Fresno. So, don't
take the smiles of the official welcoming party too seriously. They wouldn't
make a very good focus group.
When I told John Burton, Democratic leader of the state Senate, you were
finally coming to California he said: "It'll be like Stevenson going to
Dallas." Not exactly, but you get the idea.
You can do self-deprecation, and it would not be amiss. Self- deprecation,
hell. What about self-mortification? You might even want to borrow Jerry
Brown's little flagellation thingy from his seminary days.
Did you bring a flashlight?
It would help if you can tone down the West Texas twang. Intimate that you're
an orphan, and certainly don't admit that your parents live in Houston or
that you've ever been to such a wantonly rapacious place. Why,
"unconscionable price-gouging" occurs there, according to Gov. Gray Davis.
Talk about your brother in Florida and how, just like Californians, he
doesn't want any more drilling off his coastline. (You can skip the part
about how you don't exactly agree - with him or them.)
Talk about your sister in the Washington, D.C.-area. Remind them that her
husband worked for such California Democrats as Tony Coelho (do not recall
that Coelho got out of Congress just ahead of the ethics committee) and that
your brother-in-law is a lobbyist for the California wine industry. Good
names to drop: Ernest and Julio.
You might try telling folks you're from Connecticut. You were born there, and
you went back to Yale as commencement speaker just last Monday.
And for heaven's sake don't tell them you know Enron Chairman Ken Lay or that
he and corporate colleagues are among the biggest Republican bankrollers. A
few days ago, state Attorney General Bill Lockyer said he'd like to find a
way to lodge criminal charges against some Big Energy boys.
"I would love to personally escort Lay to an 8 x 10 cell that he could share
with a tattooed dude who says, `Hi, my name is Spike, honey,' " Lockyer told
one crowd, according to an aide. Just for emphasis, the attorney general
repeated it for the Wall Street Journal. I guess Lockyer just forgot to
mention that as a state senator in 1996 he voted for the electricity
deregulation bill at the heart of the problem.
See, I told you how useful "dude" could be. And, as Lockyer also proves,
cheap political theatrics are pretty hot too.
Before you meet with Gov. Davis, make sure to read the latest statewide poll
from the Public Policy Institute of California. Maybe have it lying around
the room when Davis walks in. He's familiar with the numbers and will catch
your drift.
Fewer than half of Californians now approve of the way he's handling his job
- a big drop from January. Sixty percent disapprove of the way he's handling
the electricity crisis.
The best news is that the public doesn't really blame either of you - yet -
for the crisis. A third of folks in the poll blame the energy companies.
Almost as many blame former Republican Gov. Pete Wilson who pushed the
deregulation measure and the Democratic- dominated Legislature that enacted
it.
Only 10 percent blame Davis and the current Legislature and only 8 percent
blame you and the federal government - the same number, by the way, who blame
California consumers. But that doesn't mean you're off the hook. Fifty-six
percent of the folks don't like the way you're responding to the crisis. If
you don't have an order for capping electricity prices in your briefcase, you
might consider having Air Force One fly on to Hawaii.
Like folks across the country, Californians give you decent marks overall,
with 57 percent in the PPIC poll approving of your job performance and 36
percent disapproving. Seven percent must have been at the beach.
Two other things: Get out of here before the air-conditioning season really
cranks up, and, remember, they call it "sushi," not "bait."

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

BUSINESS
Houston's top execs in energy / Oil and gas claims 8 of 10 highest- paid
L.M. SIXEL
Staff

05/27/2001
Houston Chronicle
2 STAR
1
(Copyright 2001)

Want to know just how well the energy business is doing?
Consider this: Eight out of the 10 highest-paid executives in Houston are in
the oil and gas business.
The annual list, compiled by Resource Connection for the Houston Chronicle,
is dominated by executives from Enron Corp., Anadarko Petroleum Corp. and
Nabors Industries. The executives were handsomely rewarded in stock options
and awards of stock at a time when their company stock prices are riding
high.
The top earner was the chairman and CEO of Nabors Industries, Eugene M.
Isenberg. He earned $63.9 million last year, largely because the company
doubled the number of options it awarded him the previous year, said Tammy
Hemphill, director of human capital consulting for Resource Connection.
When times are good, companies typically give away more options. It's a way
to attract and retain senior management.
Isenberg's compensation comes strictly through the performance of the
company, said Denny Smith, director of corporate development for Nabors
Industries. The only way Isenberg can make money is if the value of the
company's stock grows through his efforts.
And he's made a lot for Nabors Industries. When Isenberg took over the
company in 1986, its net worth was a negative $35 million and it was emerging
from bankruptcy. Under Isenberg's leadership, the company's net worth is now
$2 billion, said Smith. And Nabors' stock price doubled during 2000.
Isenberg earned 42 percent more than the highest-paid executive of the year
before. Robert Devlin, American General's chairman and chief executive
officer, earned $45 million in 1999.
Devlin fell to the 10th place on the recent list (he earned $27,272,697 in
2000). But according to a source familiar with American General's
compensation packages, Devlin will receive about $200 million in stock
options and other incentives in 2001 as a result of American International
Group's purchase of American General.
Four of the six highest-paid executives in Houston are from Enron. But the
highest-paid Enron executive is not Chairman Ken Lay.
In fact, Lay made less money than three of his lieutenants because he
received far fewer stock options.
For example, Kenneth Rice, chairman and chief executive officer of Enron
Broadband Services, one of Enron's business units, received more than twice
as many options as Lay and Jeff Skilling, Enron's chief executive officer and
president.
Consequently, Rice was the second-highest-paid executive in Houston, taking
home $47,375,588 in 2000. Lay, who was the sixth- highest-paid executive,
earned $35,665,037.
Max Watson, the former chairman and chief executive officer of BMC Software,
was conspicuously absent from the list this year.
He didn't get any stock options or restricted stock awards in 2000, so his
compensation was just salary and bonus of $1.2 million, Hemphill said. But
that wasn't enough to put him on the list, which required a package worth at
least $2 million.
John Cox, acting chief financial officer of BMC Software, said the company
awards options only once every three years. It's a good- sized grant that's
supposed to last three years.
The options take four years to vest so they always have options "on the
table" - options that haven't vested yet but have a high value that makes it
difficult for an executive to leave the company.
Of the 17 highest-paid executives in Houston, five are from Anadarko.
"They're very good at what they do," said Teresa Wong, manager of public
affairs and corporate communications for Anadarko.
The company went from a $4 billion company in January 2000 to a $16 billion
company by the end of the year, she said. It catapulted into the top in terms
of production, employees and reserves, she said.
The executives are being rewarded for that increased risk and responsibility,
she said. And it didn't hurt that the stock price more than doubled during
the year.
Dynegy's executives also benefited from the company's rapid growth. Two of
the merchant energy company executives were among the 14 highest-paid
executives in Houston.
"We had an incredible year last year," said Jennifer Rosser, director of
strategic business communications. The stock price increased 231 percent, the
number of employees more than doubled, and the company had a 210 percent
increase in net income.
Chuck Watson, chairman and CEO, and Steve Bergstrom, the company's president,
are among the founders of the company, she said.
Incentive plans based on options and awards of stock work well when the stock
market is riding high. They aren't as effective when the stock prices are
"underwater" - Wall Street lingo for worthless.
So, to re-motivate executives in a depressed stock market, nonenergy
companies have been focusing on short-term incentives such as cash bonuses,
said Wes Hart, an executive compensation consultant who designs executive
incentive plans for Buck Consultants.
Companies hope the cash incentives will boost their numbers - earnings per
share and cash flow - and hopefully the stock price will follow, Hart said.
That new focus on short-term thinking doesn't mean companies stopped
pondering longer-term goals. But some are adding more "teeth" to their
long-term performance goals to get away from the idea that options are a
"gimme" or given based on seniority.
And to keep the long-term goals from becoming worthless when the stock price
falls, companies are using goals that aren't as directly tied to the stock
price.
Sometimes executives must meet a profit hurdle. Others must outperform a
designated peer group on several key performance categories, Hart said.
Other times, executives are required to meet an imposed stock market hurdle;
for example, the stock has to reach $50 and stay there for 10 days. And some
companies are giving executives a reward if the company's stock price drops
less than its competitors, Hart said.

Photos: 1. Because of differences in stock option packages, Enron Corp.
President and Chief Executive Officer Jeffrey Skilling made less than Kenneth
Rice, chairman and chief executive officer of Enron Broadband Services, one
of Enron's business units (p. 2); 2. Because of differences in stock option
packages, Enron Corp. President and Chief Executive Officer Jeffrey Skilling
made less than Kenneth Rice, chairman and chief executive officer of Enron
Broadband Services, one of Enron's business units (p. 2); Mug: 3. Eugene M.
Isenberg (p. 2); Graph: 4. Company financials (p. 2)

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

Enron's Indian Unit Dabhol Rejects Payment From State in Quarrel Over Bills
By Jesse Pesta

05/27/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Staff Reporter at The Asian Wall Street Journal
NEW DELHI -- In an unusual twist in a quarrel over unpaid bills, Enron
Corp.'s Indian power project, Dabhol Power Corp., has rejected a check valued
at $39 million from its only customer, the Maharashtra State Electricity
Board.
Dabhol also delivered a sharply worded four-page letter responding to the
electricity board's decision last week to rescind its contract based on a
claim that Dabhol misrepresented its "ramp-up rate" - the time it takes to go
from launch to full power. "We deny that DPC have practiced any
misrepresentation," the letter says. "Furthermore, we do not think that the
MSEB entertains any honest belief" in its own allegation, the letter says.
It is the latest in a series of counterpunches as both sides try to gain the
edge in a fight over the rates Dabhol charges for electricity. The $3 billion
power plant is the largest foreign investment in India, and the dispute is
being closely watched as an indicator of India's hospitality toward investors
from abroad.
India is in dire need of electricity: New Delhi endures hours-long blackouts
every day. However, many of India's state electricity boards have little cash
because of widespread electricity theft and lax customer metering. The Dabhol
dispute broke late last year, when the Maharashtra board defaulted on bills
totaling $48 million.
Dabhol's critics claim the rates it charges are unreasonably high. Dabhol
rejects that argument. Among other things, Dabhol has pointed out that the
Maharashtra board draws only about 15% of the plant's capacity, down from an
average of 60% or so before the dispute. Reduced use pushes up the per-unit
cost because the pricing formula includes some capital costs. A 90%
utilization rate would result in a tariff of 4.5 to five rupees (nine cents
to 11 cents) per kilowatt-hour, one official estimated. In contrast, the
chairman of the Maharashtra electricity board, Vinay Bansal, said on Sunday
that current tariffs may be in the range of seven to 10 rupees, which he
acknowledged is partly due to reduced utilization of capacity.
Mr. Bansal said he hadn't seen the Dabhol letter and couldn't comment on it
specifically.
He also said that after Dabhol rejected the April payment, the Maharashtra
board deposited the payment to a Dabhol account. But, he added, "If they want
to return it, they can still return it."
In the letter, Dabhol says it rejected the check for 1.37 billion rupees
because it was accompanied by a note saying the payment was made under
protest, a reference to the Maharashtra board's decision last week to rescind
its electricity contract with Dabhol.
"The MSEB cannot have it both ways," says the letter, signed by Enron
executive K. Wade Cline. Either the board is rescinding the contract, or it
is affirming the validity of the contract by making payments.
Regarding the Maharashtra board's claim that Dabhol misrepresented the
plant's ramp-up rate, the letter says the contract permits "unilateral
amendment" of the production schedule based on actual plant performance. Mr.
Bansal said the board disagrees with Dabhol's interpretation of the contract.
This isn't the first time Dabhol has come under fire. In Maharashtra state
elections in 1995, a coalition government came to power partly on the
strength of a campaign against the plant. Political leaders said the plan was
too costly and too dependent on foreign fuel. The newly elected state
government canceled the project, although the contract was later renegotiated
and construction was finished in May 1999.
With the payment defaults, trouble had returned. In recent months, Dabhol has
invoked political force majeure - a move typically used to dissolve a
contract because of war or natural disaster - saying recent government
actions could harm the company's ability to meet its obligations. It also has
called on existing federal-government guarantees to cover the overdue bills.
Meanwhile, the Maharashtra electricity board has slapped fines totaling four
billion rupees ($85 million) on Dabhol for amending the start-up schedule,
and a state panel has recommended sweeping changes in the contract.
But the past week or so has been particularly stormy and Dabhol itself
indicated a willingness to scrap the contract. A week ago, Dabhol issued a
preliminary termination notice, a formal step that would allow it to cancel
the contract six months from now if the disputes aren't resolved. And on
Wednesday, the Maharashtra board said it was rescinding the contract.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

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

SAUDI ARABIA: UPDATE 3-Saudi seen revealing gas leaders before June signing.
By Peg Mackey

05/27/2001
Reuters English News Service
(C) Reuters Limited 2001.

DUBAI, May 27 (Reuters) - Saudi Arabia is expected to reveal the leaders of
two coveted gas projects before putting pen to paper on multi-billion dollar
agreements with leading foreign oil companies on June 3, industry sources
said on Sunday.
On May 18 the kingdom awarded eight major oil companies stakes in a gas
development initiative, its biggest opening to foreign investors in a quarter
of a century.
ExxonMobil and Royal Dutch/Shell have won starring roles in the so-called
"core venture" projects, estimated to require combined total investments of
$25 billion.
And industry sources have suggested that Exxon is in pole position to lead
the $15 billion South Ghawar development, known as core venture 1, with Shell
a strong contender to lead core venture three - development of gas at Shaybah
in the empty quarter of southeast Saudi Arabia.
Both supermajors already have considerable investment in the kingdom's
refining and petrochemical sectors and feature as top customers of Saudi oil.
BP is also competing for the top slot in South Ghawar, sources said.
Exxon, Shell, BP and Phillips have all been granted stakes in South Ghawar,
viewed by many as the prize gem of the gas initiative - unveiled more than
two years ago.
The leader of core venture 1 is due to get a 35 percent stake, two companies
are to get 25 percent each and one firm 15 percent, sources in the region
said.
Shell, TotalFinaElf and Conoco have all been awarded stakes in the Shaybah
venture, where the leading company is due to receive a 40 percent stake, with
the remaining firms getting 30 percent each, according to industry sources.
Exxon already has secured the leading role with 70 percent in core venture
two on the Red Sea coast while Occidental and Enron between them hold 30
percent.
READING THE FINE PRINT
By the signing ceremony in Jeddah, the oil companies will have had more than
two weeks to pore over "preparatory agreements" which detail some guidelines
for the three core ventures and outline the percentage stakes of each
consortium, industry sources said.
Fiscal and regulatory frameworks are to be worked out during the second half
of the year, they added.
Companies are expecting tough negotiations in order to finalise contracts by
a year-end target. "This is just the start of things," an industry executive
said. "There are going to be about five months of intense talks."
Top oil firms insist there are profits to be made in the kingdom, holder of
the world's fourth-biggest gas reserves.
"The Saudis have been saying all along that these are world-class projects
with world-class returns," an analyst said. "The oil majors are not doubting
that."
And they have wound up with bigger exploration blocks than they first
envisaged. "They all asked for more exploration and they got it," an industry
executive said.
The scope of South Ghawar core venture 1 includes gas exploration in the
North Rub al Khali, a natural gas liquids (NGL) recovery plant, gas
processing, participation in expansion of the gas pipeline network,
construction of two power and water desalination plants and two petrochemical
plants.
Investment of up to $5 billion in the Red Sea core venture 2 includes an
exploration area in the northern Red Sea, development of the existing Midyan
and Barqan gas fields and requirements for power, desalination and
petrochemical plants.
Investment of some $5 billion in the Shaybah core venture 3, Shaybah includes
gas exploration in South Rub al Khali, development of the Kidan gas field and
power, desalination and petrochemical plants.
Analysts expect state oil company Saudi Aramco to participate in the gas
initiative. "It is unwise to think that Saudi Aramco will not be involved," a
regional analyst said.

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

Oil Cos Told To Accept Aramco As Gas JV Partner -Report

05/27/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

MANAMA, Bahrain -(Dow Jones)- The Saudi government has told international oil
companies they must accept the state-owned Saudi Arabian Oil Co. (C.SOI), or
Aramco, as a partner in any core gas project it offers them if Aramco wants
the partnership, the Saudi business daily al-Eqtisadiah reported Sunday.
It quoted sources as saying that Aramco will also have a majority voting
rights on key issues regardless of its equity size in the projects. The
newspaper didn't elaborate on whether this kind of arrangement would be
accepted by the foreign companies.
Aramco would also receive compensation for any existing assets, property or
infrastructure used by the planned joint ventures, which shouldn't conflict
with any of Aramco's current projects, the newspaper said.
The Saudi government is expected to sign preliminary agreements for
multibillion dollar natural gas development projects with prequalified oil
companies June 3, a Saudi government source said Sunday.
The government earlier this month selected a consortium comprising Exxon
Mobil Corp. (XOM), Royal Dutch/Shell Group (RD), BP PLC (BP) and Phillips
Petroleum Co. (P), for a project to develop the South Ghawar field, called
Core Venture 1, with an estimated investment value of between $15 billion and
$17 billion.
Exxon Mobil was also appointed to lead Core Venture 2, or the Red Sea
project, with Occidental Petroleum Corp. (OXY) and Enron Corp. (ENE), which
bid jointly for the project, as partners.
Core Venture 3, the Shaybah project, was awarded to a consortium of Shell,
TotalFinaElf (TOT) and Conoco Inc. (COCA). Leaders for Core Ventures 1 and 3
have yet to be confirmed.
-By Abdulla Fardan, Dow Jones Newswires; (973) 530758;
abdullah.fardan@dowjones.com

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

India: Indian lenders of DPC to participate in Singapore meet

05/27/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 26. INDIAN lenders to Dabhol Power Company have decided to take
part at the meeting in Singapore called by foreign financiers of the project.
Institutional sources told Business Line that even though the exact agenda of
the meeting has not been finalised as yet, domestic lenders would participate
in the meeting to be held on June 5 and 6. They were earlier contemplating
skipping the meeting as they thought it would serve no good because DPC had
anyway begun termination proceedings.
Also, with chances of foreign lenders cashing the deferred payment guarantees
increasing, Indian lenders are keen to find out what is on their minds. As of
now, they have not received any indication from their counterparts abroad.
The source said the meeting is expected to discuss whether they should
continue disbursements to the project in spite of the company serving the
preliminary termination notice and MSEB retaliating with a legal notice. The
board yesterday approached the Electricity regulatory commission for
resolving the dispute for which a hearing is scheduled on May 29.
Indian financiers still favour continuing with the project as it is close to
completion.
Another issue likely to crop up is funding the cost overruns. The delays
caused by various reasons has apparently resulted in cost overruns reportedly
of about $400 million. The company has already brought in all the equity and
now, if it has to continue with construction, it has to borrow more, which
the lenders are not very keen on.
Meanwhile, the sources said Enron is trying to work out ways of bringing down
the tariff. They said Enron is likely to have another meeting with officials
of Union Power and Finance Ministries.
- Our Bureau

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

National Desk; Section A
Senator Calls for Hearings Into Energy Regulators' Moves
By CHRISTOPHER MARQUIS

05/26/2001
The New York Times
Page 11, Column 1
c. 2001 New York Times Company

WASHINGTON, May 25 -- Accusing federal regulators of not doing their job,
Senator Dianne Feinstein called today for hearings into possible
improprieties between members of the Federal Energy Regulatory Commission and
private energy interests.
Ms. Feinstein, a California Democrat, said the commission, which is
responsible for regulating the energy industry and is known by the acronym
FERC, had not acted to protect residents of her state from companies that
were reaping undue profits through spiraling energy costs.
''Despite evidence of manipulation and price gouging in both the electricity
and natural gas markets in California and the West, and a finding by FERC
last November of 'unjust and unreasonable' rates,'' the senator said, ''the
commission has failed to take the actions necessary to bring reliability and
stability to the marketplace.''
Ms. Feinstein made the request in a letter to Senator Joseph I. Lieberman,
who is poised to take over the Committee on Governmental Affairs once the
Democrats regain control of the Senate. Mr. Lieberman, who has already asked
the General Accounting Office to investigate price gouging, could not be
reached for comment today.
In her letter, Ms. Feinstein cited an article in The New York Times today
reporting that Kenneth L. Lay, chairman of the Enron Corporation, had told
the commission's chairman, Curtis Hebert Jr., that he would support his
continuation in the job if the commissioner endorsed the company's views on
energy deregulation. Enron is the nation's largest electricity trader.
Mr. Hebert said he had rejected Mr. Lay's offer. Mr. Lay told The Times that
it was Mr. Hebert who had asked him to intercede with White House officials.
The president appoints members of the commission and names its chairman.
''It would be unconscionable if any of the nation's electricity traders or
generators were in a position to be able to determine who chairs or becomes a
member of the commission,'' Ms. Feinstein said.
Environmental groups and other critics say the Bush administration has
granted unprecedented access to leaders of the energy industry. They note
that both President Bush and Vice President Dick Cheney made their fortunes
in oil and that the president's national energy strategy, unveiled last week,
relied heavily on exploiting new resources rather than conservation or fuel
efficiency.
But in a recent interview, Mr. Cheney said the White House was motivated by
''sound public policy'' and not what the energy companies sought.
The Senate today confirmed Mr. Bush's nominees for two Republican vacancies
on the five-member panel. They are Patrick Wood, a former head of the Texas
Public Utilities Commission, which deregulated electricity in the president's
home state, and Nora Brownwell, a Pennsylvania utility regulator.
Mr. Cheney has indicated that Mr. Wood will take over as chairman.

Photo: Senator Dianne Feinstein (Associated Press)

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

NEWS
Enron's secret bid to save deregulation / PRIVATE MEETING: Chairman pitches
his plan to prominent Californians
Christian Berthelsen, Scott Winokur
Chronicle Staff Writers

05/26/2001
The San Francisco Chronicle
FINAL
A.1
(Copyright 2001)

Energy executive Kenneth Lay, head of powerful Enron Corp., quietly courted
Arnold Schwarzenegger, Richard Riordan, Michael Milken and other luminaries
this week in Beverly Hills to drum up support for his solution to
California's energy crisis.
His prescription called for more rate increases, an end to state and federal
investigations and less rather than more regulation.
Lay, a close friend of President Bush and one of his largest campaign
contributors, hosted a private 90-minute meeting in a conference room at the
Peninsula Hotel in Beverly Hills on Thursday.
Among the participants were Milken, the former head of the Drexel Burnham
Lambert investment banking firm who pleaded guilty to fraud charges in 1990
and who now runs a think tank based in Santa Monica; movie star
Schwarzenegger; and Riordan, the mayor of Los Angeles. Schwarzenegger and
Riordan have been courted recently as GOP gubernatorial candidates.
One participant, who agreed to speak on the condition he not be identified,
said the meeting appeared to be geared toward getting participants to support
Lay's vision and then champion it to officials who are trying to solve the
state's energy mess.
PLAN TO RESCUE DEREGULATION
The source said the timing and tone of the meeting suggested Lay is concerned
that California will abandon its disastrous experiment with power markets by
either re-regulating the system or creating a government authority to provide
electricity. Gov. Gray Davis signed legislation last week to create and fund
a state power authority that would build, buy and run power plants in
California.
"They're trying to rescue deregulation," the source said of Enron executives.
"They think the whole state power authority is a bad idea."
At the meeting, Enron representatives circulated a four-page position paper
titled "Comprehensive Solution for California," which was obtained by The
Chronicle. It said ratepayers should bear responsibility for the billions in
debt incurred by the state's public utilities and that investigations of
power price manipulation and political rhetoric are making matters worse.
The paper made no mention of the possibility that much of the runaway
electricity costs in California is due to market manipulation by power
generators and traders -- a possibility given credibility in studies by
regulators and economists.
One of the talking points read: "Get deregulation right this time - -
California needs a real electricity market, not government takeovers."
Another point suggested giving consumers monetary rebates for conserving
electricity.
INVOLVED IN EARLY DAYS
Lay has been an aggressive champion of deregulated electricity markets and
was an early advocate in persuading California to begin its experiment with a
competitive power market system.
Lay has created a new kind of company in the process, one that essentially
produces nothing but makes money as a middle-man, buying electricity from
generators and selling it to consumers. During the first quarter of this
year, Enron's revenues increased 281 percent to $50.1 billion.
Asked about the purpose of the meeting, Karen Denne, a spokeswoman for Enron,
said she would "look into that" and then did not return repeated telephone
calls seeking comment. One participant said Denne was present at the meeting.
D.C. CONNECTIONS
Meanwhile, Lay's power in Washington is reported to have reached
unprecedented heights. According to a story in yesterday's New York Times,
Lay supplied the Bush administration with a list of candidates for jobs
regulating the power industry and even interviewed one of them. The story
also said Lay essentially threatened to seek the removal of the chairman of
the Federal Energy Regulatory Commission, Curt Hebert, if he does not support
Lay's desire to further deregulate the nation's electricity system. Lay
denied the allegation.
Also in attendance at this week's meeting were Bruce Karatz, chief executive
of home builder Kaufman & Broad; Ray Irani, chief executive of Occidental
Petroleum; and Kevin Sharer, chief executive of biotech giant Amgen. Among
those who were invited but did not attend were former Los Angeles Lakers star
Earvin "Magic" Johnson; supermarket magnate and Bill Clinton supporter Ron
Burkle; and Dennis Tito, recently returned from the world's first civilian
space trip.
Milken, through a spokesman, confirmed that he attended the meeting, but
declined to be interviewed. Schwarzenegger could not be reached for comment
through a publicist, and Sharer did not return a call yesterday afternoon.
A spokesman for Riordan, Peter Hidalgo, said the Los Angeles mayor attended,
but was "not intending to formulate any kind of policy position on this
issue. His intent is to listen to all sides."
Attached to the Enron handout was a two-page open letter, addressed to Davis
and the state Legislature, apparently prepared for those who support Lay's
position and would be willing to sign their names to it. The source who
participated in the meeting said those assembled appeared noncommittal and
asked a number of questions of Lay, but did not agree to champion his agenda.

PHOTO; Caption: Kenneth Lay

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

USA: Beverly Hills crowd unmoved by Enron pitch - paper.

05/26/2001
Reuters English News Service
(C) Reuters Limited 2001.

SAN FRANCISCO, May 26 (Reuters) - Enron Corp. chairman Kenneth Lay sought the
backing of prominent Californians for an energy deregulation plan this week
but had little success, the San Francisco Chronicle reported on Saturday.
The newspaper, citing an anonymous source present at the 90-minute meeting
Thursday at the Peninsula Hotel in Beverly Hills, said that among those
present were Los Angeles Mayor Richard Riordan, actor Arnold Schwarzenegger
and former junk-bond kind Michael Milken.
The newspaper said Enron failed to obtain signatures from anyone at the
meeting for an open letter to Gov. Gray Davis and the state legislature which
was attached to a four-page position paper championing power market
deregulation.
The Chronicle quoted its source as saying Lay's guests were inquisitive but
noncommittal.

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

Enron courts prominent Californians at secret meeting

05/26/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - In a move to garner support from prominent California
Republicans, a Texas energy executive held a secret meeting to push for the
preservation of the state's deregulated power market, a newspaper reported
Saturday.
Houston-based Enron Corp. Chairman Kenneth Lay met with such names as movie
star Arnold Schwarzenegger, Los Angeles Mayor Richard Riordan and Michael
Milken, who pleaded guilty to fraud charges in 1990 as head of the Drexel
Burnham Lambert investment banking firm, the San Francisco Chronicle
reported. The 90-minute private meeting took place Thursday in a Beverly
Hills hotel.
Schwarzenegger and Riordan have been courted as Republican candidates for
governor.
Enron distributed a four-page plan at the meeting calling for ratepayers to
pay the billions in debt racked up by the state's public utilities and
contending that state and federal investigations of price gouging are
hindering the situation, the Chronicle reported after obtaining a copy of the
paper.
Others attending the meeting included chief executives Ray Irani of
Occidental Petroleum, Kevin Sharer of biotech giant Amgen, and Bruce Karatz
of home builder Kaufman & Broad, the Chronicle reported, citing unidentified
sources.
Lay, who is a friend and one of President Bush's largest campaign
contributors, has built the world's largest energy trader by buying
electricity from generators and selling it to consumers. During the first
quarter of this year, Enron's revenues increased 281 percent to $50.1
billion.
Lay and Gov. Gray Davis have disagreed about how California's power crisis
should be handled, and Lay says his company is being used as a scapegoat.
Enron spokeswoman Karen Denne did not immediately return a call seeking
comment Saturday.
----
On the Net:
http://www.enron.com/corp/

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

Business/Financial Desk; Section C
INTERNATIONAL BUSINESS
Enron's Dispute With Utility In India Grows More Tangled
By SARITHA RAI

05/26/2001
The New York Times
Page 2, Column 5
c. 2001 New York Times Company

BANGALORE, India, May 25 -- The dispute between the Enron Corporation and
Indian federal and state government officials keeps getting messier.
Talks meant to settle the dispute over months of unpaid power bills fell
apart before they could begin on Wednesday, when the chief negotiator on the
government side, Madhav Godbole, abruptly resigned after being criticized by
a senior politician for going into the negotiations with a ''negative
mind-set.'' Pressure from the chief minister of Maharashtra state persuaded
him to retract the resignation later in the day.
Then, on Thursday, the state-run utility at the center of the dispute -- the
sole customer for electricity generated by the Enron-controlled Dabhol Power
Company -- served notice that it would challenge the validity of the contract
between Dabhol and the utility and seek to have it canceled.
The utility has long complained that Dabhol's rates are too high, and it has
tried to assess penalties on Dabhol for failing to achieve promised levels of
power capacity.
Another government committee member, R. K. Pachauri, the director of an
energy research institute, also resigned, and told reporters that the
committee had been asked to rewrite the power supply contract, which it had
no authority to do.
The move by the utility came nearly a week after Dabhol escalated the dispute
to a new level by serving its own termination notice on the utility for
nonpayment. Under the contract's terms, Dabhol's notice set the clock ticking
on a six-month cooling-off period in which the two sides might settle the
dispute before the contract is ended.
The Indian federal government, which is represented on the negotiating
committee along with the utility and the state government, has been pressing
for a quick resolution. ''The government is ready to consider any worthwhile
idea emerging out of the renegotiating committee for the settlement of the
dispute,'' the energy minister, Suresh Prabhu, said on Thursday.
Where the talks are headed is hard to tell, but both sides have much to lose
from an irreparable rupture. The success of the $2.9 billion Dabhol project,
65 percent owned by Enron, is seen as crucial to the development of India's
investment-starved power industry, and to India's hopes of attracting $10
billion in foreign investment in the coming year. Both the federal and state
governments have guaranteed the utility's payments of its bills, as well as
some of the loans to build the project.
For Enron's part, Dabhol has not brought in any revenue for months, and a
drawn-out legal battle in the Indian courts could leave it unable to recover
any of its losses if unsuccessful.
Talks are now scheduled to begin Tuesday.

Photo: Part of a power plant that a subsidiary of the United States energy
company Enron has been building in Dabhol, India. A dispute with Indian
officials over unpaid bills has clouded the future of the plant. (Associated
Press)

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

India: MSEB requests MERC to rescind Dabhol PPA

05/26/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 25. THE Maharashtra State Electricity Board filed a petition with
the Maharashtra Electricity Regulatory Commission on Friday, asking it to
rescind the power purchase agreement (PPA) with the Dabhol Power Company.
The move is expected to shift arbitration proceedings between the two
companies to an Indian forum. "MERC will now give us instructions whether
parallel action should continue. We are praying to the commission that
arbitration proceedings be discontinued," a senior MSEB official said.
"Although, the PPA was signed much before MERC's formation, the dispute arose
only over the past few months. And as such, we are seeking a hearing on these
disputes," the official said. The Advocate General of Maharashtra, Mr Goolam
E. Vahanvati, is expected to represent MSEB at the commission hearing.
On Thursday, MSEB had issued a legal notice to Enron, stating that it had
been forced to rescind the PPA and was avoiding the contract as DPC had
"misrepresented material facts" while drawing up the PPA and hence, the board
was "no more bound by the contract".
According to the official, the PPA provides for full capacity availability
within three hours of "cold start", for which MSEB has to pay a penalty of Rs
17 lakh.
MSEB had alleged that DPC's machines take five hours to reach full capacity
and had slapped a rebate of Rs 401 crore in January 2001.
"Following this, DPC not only said the performance curves in the PPA be
replaced but that the plant profile did not fit the PPA to begin with. Also,
a series of notices - arbitration, escrow, political force majeure and
finally the preliminary termination notice - were slapped on the board," the
official said.
The board has now asked MERC to look into all disputes between the two
companies.
If DPC does not attend the hearing, the commission can give an 'ex-parte
hearing', according to legal sources. According to Section 52 of the ERC Act,
provisions of this Act have an overriding effect on all other Acts.
The board will also seek damages to the tune of about Rs 700 crore, which
includes the January rebate of Rs 401 crore and the subsequent two rebates
amounting to Rs 300 crore, the official said.
Meanwhile, negotiations between the two parties are expected to continue.
"The Godbole committee meeting is scheduled on May 29. We would like to reach
an understanding with DPC," the official said.
The board has offered to continue buying power from DPC in spite of the
notice to avoid inconvenience to the power company.
Bill not accepted: Meanwhile, DPC refused to accept Rs 139 crore toward its
April power purchase bill paid by MSEB under protest on Friday.
The DPC spokesperson refused to comment on the company's decision.
"We had sent them the bill amount but they did not accept it," a senior MSEB
official said.
The board now plans to deposit the money in DPC's bank account and send a
separate protest letter to the company, as per PPA provisions.
- Our Bureau

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

DPC refuses to take MSEB's bill for April
Our Bureau

05/26/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

DABHOL Power Company on Friday refused to accept the Rs 136.87-crore April
electricity bill payment from Maharashtra State Electricity Board.
"We sent the cheque to DPC, but they refused to accept it. We are yet to get
any reply from them," said N M Mishra, director (finance) of MSEB. He said
the money was parked in a Canara Bank account.
According to a senior MSEB official, the DPC move is in response to MSEB's
notice to rescind the power purchase agreement issued on Thursday.
"It seems that since MSEB is paying the cheque under protest, DPC is now
looking at various legal implications," he said. The DPC spokesperson was not
available for comments.
Meanwhile, DPC on Friday held discussions with the power ministry officials
in New Delhi. Enron managing director K Wade Cline met power secretary A K
Basu and discussed the situation arising out of DPC serving a preliminary
termination notice because of an unresolved six-month dispute over bills owed
by MSEB.
Basu said, "The Centre will do whatever possible to resolve the DPC-MSEB
dispute at the earliest."
The ministry has advised DPC to appear before Maharashtra government's
negotiating committee headed by Madhav Godbole to plead their case.
According to Basu, the Centre has appointed former telecom secretary A V
Gokak on the committee for an early solution.
"Gokak has been fully briefed and he would try to bring both sides on a
common ground. But both the parties have to come to an understanding between
themselves," he added.

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

News
Ganske Has Own War Chest To Take On Harkin for Senate
MATT KELLEY
WORLD-HERALD BUREAU

05/26/2001
Omaha World-Herald
Sunrise
8
(Copyright 2001 Omaha World-Herald Company)

Should it come down to personal wealth, Rep. Greg Ganske will have an edge in
a 2002 Iowa Senate race with Sen. Tom Harkin.
Ganske, a Republican who plans to challenge Harkin, held assets worth between
$2.48 million and $5.63 million at the end of 2000, according to financial
disclosure statements. Harkin, a Democrat, reported wealth between $363,000
and $1.43 million.
Those figures, however, may prove irrelevant as both candidates have proved
their ability to finance expensive campaigns without dipping into their
personal fortunes. Not since Ganske's first run for office, in 1994, has
either man spent his own money to get elected.
"We're both pretty good fund-raisers," Ganske said Wednesday.
The financial figures are reported each year on disclosure statements filed
by every member of Congress.
For the lawmakers from western Iowa, the most recent disclosure reports
showed relatively little change from 1999.
The maximum value of Republican Sen. Charles Grassley's assets dwindled a
bit, from $5 million in 1999 to just under $3.4 million last year. Grassley,
who farms in Butler County, keeps virtually all of his wealth in farmland and
mutual funds.
While the maximum value of Grassley's assets dwindled, the minimum value rose
from $1 million in 1999 to $1.13 million last year.
Grassley also reported loans for his farmland of between $115,000 and
$300,000. His farms brought in $81,700 in income 2000 with just over $60,000
in expenses, according to the report.
Republican Rep. Tom Latham, who is part owner of a family farm and seed
company, reported assets of between $1.5 million and $3.23 million in 2000.
That's up from 1999, when Latham reported assets between $1.1 million and
$2.6 million.
Latham's disclosure report also shows a significant jump in investment
income, from between $108,400 to just over $1 million. In 1999, Latham
reported income of between $60,000 to $145,000.
Most of that increase is due to income from his share of the family seed
company, which in 2000 crept into reporting bracket with a $1 million
ceiling. Latham's income from the company, however, is likely much closer to
bracket's lower threshold of $100,000 - a level he did not exceed in 1999.
Latham also reported a salary from Latham Seed Co. of $6,000. He reported a
loan in Grand Junction, Iowa, for $15,000 to $50,000.
As in 1999, Rep. Leonard Boswell's main source of investment income came from
the sale of between $15,000 and $50,000 in calves from his farm in Decatur
County.
The Democrat's total wealth in 2000 stood between $402,000 and $880,000 - all
of it tied to his farmland. He reported between $30,000 and $100,000 in farm
loans.
Aside from his congressional salary, Boswell earned just over $8,000 in
pension payments from his service in the Iowa Legislature. His wife, Dody,
earned just under $7,000 from Lamoni Community Schools.
Ganske also held about the same level of assets and income over 1999. He
reported between $112,100 and $273,000 in income, most it from stock
dividends, interest and capital gains.
Ganske's wife, Corrine, also works as a physician. They reported no
liabilities.
The majority of Ganske's wealth was in mutual funds.
Should Ganske win the GOP primary to face Harkin, the race is likely to
become pivotal as both parties jockey for control of the Senate. Both
candidates will draw significant donations from outside the state, perhaps
from party coffers in Washington.
Even so, personal wealth can provide a comforting cushion in close races.
According to the Center for Responsive Politics, Ganske used $618,000 of his
own money to help him defeat longtime Democratic incumbent Neal Smith in
1994.
Ganske will be mounting a similar challenge in 2002 against Harkin, a
stalwart of Iowa's Democratic establishment.
While smaller than Ganske's Harkin's portfolio contained a wide array of
stock and bond holdings. In addition to various mutual funds, Harkin and his
wife, Ruth, owned stock in Southwest Airlines, Lucent Technologies, Lehman
Brothers and Kimberly Clark.
And while he roundly criticizes the oil industry for reaping large profits,
The Harkins own between $1,000 and $15,000 worth of common stock in Enron
Corp., an energy company. Ruth Harkin owns between $25,000 and $100,000 in
stock in Conoco Inc. and served on the oil company's board of directors.
Her husband recently issued a statement that he has always been proud of his
wife's career.

Mugs/5GanskeHarkinGrassleyLathamBoswell

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

BUSINESS
Senate confirms Texan to energy commission
Houston Chronicle News Service

05/26/2001
Houston Chronicle
3 STAR
1
(Copyright 2001)

WASHINGTON - The Senate confirmed on Friday a Texas ally of President Bush
and a Pennsylvania electricity regulator to become commissioners on the
Federal Energy Regulatory Commission.
The voice-vote confirmation filled two Republican vacancies on the
increasingly visible five-member commission, which has come under intense
scrutiny in recent months over its actions to correct the wholesale power
market chaos in California.
Confirmed were Pat Wood III, head of the Texas Public Utility Commission,
which is handling the deregulation of electricity in Texas, and Nora
Brownell, a regulator in Pennsylvania, where deregulated power markets have
been called a model. Wood's term runs through mid-2005; Brownell's will
expire a year later.
FERC Chairman Curtis Hebert, a Republican, will retain his post. The two
Democrats on the commission, William Massey and Linda Breathitt, also remain
on board.
Also Friday, Sen. Dianne Feinstein, D-Calif., called for hearings into
possible improprieties between FERC members and private energy interests.
In her letter, Feinstein cited a report in the New York Times on Friday that
Ken Lay, the chairman of the Enron Corp., had told Hebert that he would
support his continuation in the job if the commissioner endorsed the
company's views on energy deregulation. Houston-based Enron is the nation's
largest electricity trader.
Hebert said he rejected Lay's offer. Lay told the Times that it was Hebert
who asked him to intercede with White House officials. The president appoints
the commission and names its chairman.

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

A
Editorials
DUMB TALK / California AG's remarks crude and deceptive
Staff

05/26/2001
Houston Chronicle
3 STAR
42
(Copyright 2001)

By now many Houstonians are aware of the inappropriate and totally dumb
remark California Attorney General Bill Lockyer made about Enron Corp.
Chairman Kenneth Lay earlier this week.
"I would love to personally escort Lay to an 8-by-10 cell that he could share
with a tattooed dude who says, `Hi, my name is Spike, honey,' " Lockyer is
reported to have said in a May 22 story in The Wall Street Journal.
Lockyer would like the world to blame Enron and other Texas-based energy
companies for California's rolling blackouts.
His crude remark is not only dumb, but also calculated to deceive, because he
and other California legislators who approved the state's partial electricity
deregulation (Lockyer was a member of the Legislature) can only blame
themselves for California's shortages.
Lockyer's personal attack on Lay was beneath anyone with even a modicum of
civility. It was all the more appalling because such gutter talk by
California's top law enforcement official is not helpful in resolving
California's problems, particularly when Lockyer, as the Golden State's
attorney general, is supposedly conducting a fair and impartial investigation
into the crisis.

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

Enron sends staff on deputation
P Vaidyanathan Iyer NEW DELHI

05/26/2001
Business Standard
1
Copyright (c) Business Standard

Having appointed global management consultants Arthur Andersen to value its
business worth in the country, Enron has now sent on deputation most of its
100-odd employees to two of its subsidiaries, Dabhol Power Company and
Broadband Solutions Pvt Ltd.
According to sources, with Enron Corp deciding not to undertake any fresh
investments in the country, the team at Enron India had to be deployed
elsewhere in its existing lines of business, DPC and BSPL. While DPC is
embroiled in a controversy, BSPL has made investments to the tune of $30
million in setting up data centres in India.
Sources further said that Enron India, in effect, has been reduced to a shell
company merely holding stakes in Dabhol and Broadband Solutions. They also
said that several employees had put in their papers since they were no longer
handling tasks for which they were originally hired.
When contacted, a company spokesperson said, "Those on the MetGas and fibre
optic projects have been reassigned." He however refused to comment on the
total number of employees deputed elsewhere.

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

Power firm vetted Bush energy regulators
JULIAN BORGER IN WASHINGTON

05/26/2001
The Guardian
Copyright (C) 2001 The Guardian; Source: World Reporter (TM)

Julian Borger in Washington
Applicants for jobs on the commission regulating the US energy market have
been vetted by the Enron Corporation, the country's biggest electricity power
company and a significant contributor to George Bush's election campaign,
according to a report published yesterday.
Soon after being appointed chairman of the federal energy regulatory
commission, Curtis Hebert told the New York Times, he received a telephone
call from the Enron president, Kenneth Lay, offering the company's backing to
help him keep his job if he adapted his views on deregulation.
Mr Hebert said he was offended by the approach and turned down the offer.
His appointment as chairman, which was provisional pending the nomination of
other members of the commission, has since been called into question by
Vice-President Dick Cheney.
Mr Hebert's chief of staff, Walter Ferguson, confirmed the newspaper account
yesterday. '[Mr Hebert] has always been forthright and he's been a
straight-shooter with folks in the industry,' he said.
Mr Lay, a close friend of the Bush family, confirmed that the telephone call
took place, but said it was Mr Hebert who asked for Enron's backing to keep
his job.
Either way, environmentalists and other critics of President Bush argue, the
fact that the conversation took place at all demonstrates the leading role
corporations like Enron have in making energy policy in Washington under the
new administration.
According to a joint investigation by the New York Times and Public
Broadcasting Service (PBS), Mr Lay and other Enron executives interviewed
other candidate members of the regulatory commission and supplied the
president's personnel adviser, Clay Johnson, with a list of the company's
preferred candidates.
The two commissioners Mr Bush chose to fill the vacant Republican seats both
had the backing of Enron and other power companies.
'It just confirms what we believed and what we've been saying, that the
Bush-Cheney energy plan is written by corporations and it's in the interests
of the corporations,' said Kevin Curtis, vice-president for government
affairs of the National Environmental Trust, a Washington pressure group.
Enron, a Dollars 100 billion behem oth in the energy trading market, was a
significant backer of Mr Bush in last year's election. It contributed Dollars
1.7m to Republican candidates, 72% of its total campaign spending.
It is a strong supporter of deregulation in the electric power market, in
particular the opening up of state markets to outside suppliers.
At the time of the phone call from Mr Lay, Mr Hebert had launched an
investigation of the pricing policies of big electricity traders, such as
Enron.
'One of our problems is that we do not have the expertise to truly unravel
the complex arbitrage activities of a company like Enron,' he told the New
York Times, adding: 'We're trying to do it now and we may have some results
soon.'
Mr Ferguson confirmed yesterday that the investigation would continue.
The large-scale deregulation of regional electricity markets since 1996 has
failed to reduce prices in many states, and since the chaos and power
shortages produced by the botched deregulation in California, the pace of
market reform has slowed down, much to the frustration of Enron.
In their telephone conversation, a few weeks after Mr Hebert's appointment,
he said Mr Lay told him that 'he and Enron would like to support me as
chairman, but we would have to agree on principles'.
Those principles would involve the pace and nature of deregulation.
Mr Lay said that there was 'never any intent' to link Mr Hebert's employment
with the commission's policies.
When Mr Hebert, a former Mississippi state regulator, was given the
chairman's job in January, the White House told him he would keep it at least
until Mr Bush's other nominees, Pat Wood and Nora Brownell, were confirmed by
the Senate.
Their appointment was confirmed this week, and Vice-President Cheney told PBS
that Mr Wood, head of the Texas public utility commission, should now get Mr
Hebert's job.
Mr Ferguson said yesterday that the president was the only one who could
decide whether Mr Hebert should keep his job.
Other candidates for seats on the commission also say that Enron played a
role in the selection process. Joe Garcia, a Florida regulator and now a
leader of the Cuban-American National Foundation, an exile pressure group,
said he was interviewed by Mr Lay and other Enron officials.

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

NEWS
CALIFORNIA ENERGY CRISIS
Changes in Senate could offer state relief
Finlay Lewis and Toby Eckert
COPLEY NEWS SERVICE

05/26/2001
The San Diego Union-Tribune
1,2,6,7
A-1
(Copyright 2001)

WASHINGTON -- After weeks of impasse, a plan to bring emergency relief to
California's suffering electricity customers suddenly seems likely in the
Senate because a sympathetic friend unexpectedly finds himself in a position
to help.
This dramatic reversal of fortune will occur when Sen. Jeff Bingaman, D-N.M.,
becomes chairman of the Senate Energy and Natural Resources Committee because
of Vermont Sen. James Jeffords' defection from the GOP.
Bingaman is expected to take control of the committee next week when Jeffords
officially becomes a political independent and throws control of the chamber
to the Democratic Party. Bingaman will replace Sen. Frank Murkowski,
R-Alaska, a strong ally of the energy industry.
Unlike Murkowski, Bingaman supports a bill championed by Sens. Dianne
Feinstein, D-Calif., and Gordon Smith, R-Ore., to impose temporary restraints
on wholesale power sales in the West. The bill is likely to command a
majority if it comes to a vote in the committee.
The price caps still face fierce resistance in the House and at the other end
of Pennsylvania Avenue, where President Bush, armed with a veto pen, and Vice
President Dick Cheney steadfastly resist movement toward any form of price
controls.
But because of a committee chairman's agenda-setting power, Bingaman's
ascension would dramatically shift the prospects of the Feinstein bill and
other energy issues in the Senate.
Bush's proposal to open the Arctic National Wildlife Refuge to oil
exploration already faced difficulty, but now opponents will have easier
means to block it. And other environmentally contentious energy proposals
could face tough scrutiny from Jeffords, who is expected to become chairman
of the Senate's Environment and Public Works Committee.
Still, the president will have the power to enact the bulk of his energy
program because fewer than two dozen of his 105 proposals need congressional
action.
But the shift in the Senate allows Democrats to advance their own plan. At
the top of the list are temporary price controls.
"It's a priority for Sen. Bingaman," said Jude McCartin, a spokeswoman for
the senator. "He would like to act quickly to meet the challenges."
"Bingaman is from a Western state, unlike Murkowski," said Ashley Brown,
executive director of an electricity-policy think tank at Harvard University.
"His geographic outlook is going to be different. He is also going to be
sensitive to Democratic senators from California. It's going to mean more to
him than it meant to Murkowski."
McCartin and aides to Feinstein were guardedly optimistic about the measure's
prospects should the bill reach the Senate floor, where its bipartisan
parentage will likely guarantee bipartisan backing.
That does not mean Feinstein's bill is home-free.
Bush and Cheney's opposition to price caps is rooted firmly in their belief
that they would discourage investment in the energy industry, thereby
resulting in even shorter power supplies and more California blackouts.
In the House, a companion bill to the Feinstein-Smith measure is snarled in
complex and inconclusive negotiations in the House Energy and Commerce
Committee, and the House Republican leadership would be poised to bury any
measure that might make it to the floor in defiance of Bush's wishes.
But other factors may be bolstering prospects for action to ease the
California crisis.
McCartin pointed to the Senate's unanimous vote yesterday afternoon
confirming two Bush nominees to posts on the Federal Energy Regulatory
Commission as signaling a possibly more activist bureaucratic policy in
dealing with the state's problems.
The two new members of the nation's major regulatory authority over the power
industry are Pat Wood III, the head of the Texas Utility Commission, and Nora
Brownell, a Pennsylvania utility regulator.
Bush reportedly plans to replace FERC Chairman Curtis Hebert with Wood.
While observers say it is unlikely that Wood and Brownell would defy the
White House, they note that the appointees have indicated they might take a
more expansive view than most current FERC commissioners to bring relief to
California.
Once the Democrats take formal control of the Senate, probably about June 5,
there could be other actions affecting California's power problems.
Feinstein yesterday urged the likely chairman of the Senate Governmental
Affairs Committee, Sen. Joseph Lieberman, D-Conn., to investigate whether
energy companies are improperly influencing the FERC.
She cited a report in yesterday's New York Times that Kenneth Lay, the head
of Enron Corp., a Houston-based power marketing company, had offered to back
Hebert in his effort to remain at the commission's helm if Hebert supported
Enron's positions on electricity deregulation.
Enron outpaced all other energy companies last year in contributing to GOP
campaigns, while Lay has personally been one of Bush's most generous
financial backers.
"Since FERC has refused to fulfill its legally mandated function under the
Federal Power Act to restore `just and reasonable' electricity rates, we need
to ask whether undue influence by the companies that FERC regulates has
resulted in its failure to act," Feinstein wrote in a letter to Lieberman.
Senate passage of the Feinstein-Smith bill would send the measure to the
House, where some Republican House members from California face close
re-election races next year.
A Field Poll recently showed that 75 percent of state residents view the
electricity situation as "very serious" and that 59 percent say it was caused
by energy companies seeking to increase profits.
Democratic strategists, citing those findings, say some California lawmakers
visiting their districts over the Memorial Day recess may come under pressure
to take strong action to restrain energy prices.

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


Mike,
I left out a slide in your proposal which outlines the benefits.

Let's discuss.


No, not directly.  I would suggest you contact Tom Martin.  George
---------------------- Forwarded by George Weissman/HOU/ECT on 05/23/2001 12:32 PM ---------------------------
From:	Sandi M Braband on 05/23/2001 12:00 PM
To:	George Weissman/HOU/ECT@ECT
cc:	Dan J Hyvl/HOU/ECT@ECT
Subject:	ENA contracts to be assigned

George,
Have you been working with anyone on ENA's behalf to bless the list of contracts to go to HPL? If so, who? Let me know please--thanks


Announcement for E283-1: Real Estate Finance:

Dear all:

Let me introduce myself. I am your TA, Barbara Bukhvalova. During this semester you will not see much of me unless you come to my office hours. However, you will be able to read my comments on some of your graded work and will receive occasional messages from me through Izio.

I have TAed this corse before and unlike last semester I am very proud that I have conquered the skill of using finance calculators which is a very hard task for absent minded PhD students. I hold regular office hours which hopefully will fit most, but if for some reason you need alternative arrangements do not hesitate to ask me for an appointment or/and please do communicate with me via email about shorter questions you might have.

I am going to post a math primer momentarily. This document is for (very) optional perusal. It is targeting those of you who had a long break in studies before joining Haas and/or generally are not very friendly with math. The criterion of usefulness of that file is how well you follow the lecture on mortgage math (duration, convexity etc.). If you feel like you are lacking some basic intuition on where the formulas are coming from, you can have a glance at this short (barely 3-page) document. Otherwise you might not benefit from looking at it at all.

I am looking forward to the rest of the semester and wish you all good luck.

Barbara

===========================================
This message was sent from the Izio system at http://haas.Izio.convene.com.
If you have any questions or comments regarding this email or the Izio system, please forward them to IzioSupport@convene.com.


Content-Transfer-Encoding: quoted-printable
Return-Path: <karen.mcnulty@usbank.com>
Received: from  rly-za03.mx.aol.com (rly-za03.mail.aol.com [172.31.36.99]) by
air-za01.mail.aol.com (v76_r1.23) with ESMTP; Wed, 15 Nov 2000 16:05:40 -0500
Received: from  mx02.usbank.com ([156.36.240.14]) by rly-za03.mx.aol.com
(v76_r1.19) with ESMTP; Wed, 15 Nov 2000 16:04:03 -0500
Received: from 10.207.4.79 by mx02.usbank.com with SMTP (WorldSecure Server
SMTP Relay(WSS) v4.5); Wed, 15 Nov 2000 13:04:26 -0800
X-Server-Uuid: 1e505468-1c7e-11d4-a4f6-0050da14be60
Received: from 10.88.32.240 by ntorccmx01.or.usbc.com with ESMTP (
WorldSecure Server SMTP Relay(WSS) v4.5); Wed, 15 Nov 2000 13:05:23 -0800
X-Server-Uuid: 9fbd4b68-d59c-11d3-ab85-0004ac4c2802
Subject: FW: The Golden Telephone
To: christian.c.casebeer@tek.com, andycox815@hotmail.com,
kac5575@hotmail.com,        erikdietz@yahoo.com, rgenor@hotmail.com,
patrick_hallinan@keybank.com,        JoeHutchinson@HamptonAffiliates.com,
jonesbr@hotmail.com,        kauz@terragon.com, charlesk@rosefestival.org,
kurtzi@aol.com,        LillahMay@aol.com, susan.mcdowell@usbank.com,
mcnultyleepatty@sprintmail.com, Matthew.Neff@phs.com,
julsandjerry@worldnet.att.net, jpickerd@lsil.com,
DPIERCE@TAXANALYSIS.COM, julie.podhora@usbank.com, lrodrigu@pcc.edu,
jason.rosario@codesic.com, sandlin@bendcable.com, sandozk@juno.com,
katherine.starkovich@usbank.com, joe@dynic.com, woods@pacifier.com,
kwoodall@standard.com, Kjzumbo@aol.com
X-Mailer: Lotus Notes Release 5.0.3  March 21, 2000
Message-ID: <OF646CA068.7C76FC9B-ON88256998.007241F1@or.usbc.com>
From: karen.mcnulty@usbank.com
Date: Wed, 15 Nov 2000 12:50:17 -0800
X-MIMETrack: Serialize by Router on NTZTWREM04/OR/Servers/USB(Release 5.0.5
|September 22, 2000) at 11/15/2000 12:50:19 PM
MIME-Version: 1.0
X-WSS-ID: 160C251924528-01-01
X-WSS-ID: 160C25D272423-01-01
Content-Type: text/plain;  charset=iso-8859-1

GO BEAVS!!!!!!!!!!

The Golden Telephone

?A highly recruited high school football player was visiting schools to
find
the best university for him. His first stop was the University of
Washington.? When he got there, Coach
Rick Neuheisel immediately picked up a golden telephone.? After talking for

several minutes, he said, "Thank you, God" and hung up.? This shocked the
young man. He asked the coach what was so special about the golden phone.
"Well,
?this phone is a direct line to God.? God tells us whether or not new
recruits? would be stars at our university."

The athlete asked if he could use the phone to ask God what college he
should pick. "Sure, you can!? But it's going to
cost you $2,000.? Calling Heaven isn't cheap."? The fellow didn't have that

kind of money, so he moved along.

His next stop was at the University of Oregon.? Upon entering Coach Mike
Bellotti's office, Coach Bellotti immediately picked up a similar golden
telephone.? After talking several minutes, he said, "Thank you, God" and
hung up.? The boy said, "Hey, I've seen those phones before.? Can I use
yours to call God and ask what college I should pick?"? Coach Bellotti
said,
"Sure, but it's going to cost you $1,000.? Calling Heaven isn't cheap."
Again, not having that kind of money, the young man left.? Who would want
to
live in Eugene anyway?

?His last stop was in Corvallis at Oregon State University.? Upon arrival
at
the office, Coach Dennis Erickson picked up a golden telephone, talked to
God, and said, "Thanks," and hung up. The boy just had to use that phone,
so
he said,
?"Coach Erickson, I really need to use that golden telephone so I can call
God and ask him which college I should choose.? From Washington it was
going
to cost me $2,000.? From Oregon they wanted $1,000.? So how much will it
cost me
?to call Heaven from here at Oregon State?"

The coach smiled and said,? "Nothing, son. It's a local call."

GO BEAVERS!!!

CIVIL WAR IS COMING!!!DUCKS BETTER BEWARE!!!-YOU'RE IN OUR HOUSE!!!!
SALSA STADIUM WILL BE ROCKING!!!!!!!!!!!


Attached please find the inception document for the flexible deal viewer project. Please review the document and provide your comments by next Monday. I will be circulating the document for signature next Tuesday.

Thanks

Zhiyong


-----Original Message-----
From: Felling, Amy
Sent: Friday, September 28, 2001 9:38 AM
To: Scott, Susan M.
Subject: Lost Creek Oct. Numbers

Susan,

Let me know if you have any questions about these volumes!

003-    13582  (till Oct. 3rd)
004-    1975
005-   21850

Thanks,
Amy


Attached below please find the cash flow/tariff increase study we discussed 2
1/2 weeks ago at the Sunday DPC strategy session.  The study assumes a
decrease in losses from 40% to 25% and an increase in collection efficiency
83% to 92% from 2000-01 to 2006-07.  Further, it is assumed that only one
block of DPC operates until 2006-07.

Two scenarios based on average realisation are illustrated:

1. A realistic cash flow study and  accompanying tariffs.  Given the above
assumptions and assuming there is no state subsidy in 2006-07, MSEB should
have a cash flow deficit of R34 Cr. in 2006-07 when Phase II comes on line
for sale to MSEB, given a reasonable annual tariff increase.  (See the tariff
sheet in gray shaded area.)  The annual rate increases would be15% for LT and
HT agriculture and LT public water works, a 10% increase for domestic, street
lights and interstate sales, a 4% increase for LT industrial and powerloom,
and 1% increase for LT commercial and HT industrial, public water works and
railways.

2. The annual tariff increases needed for MSEB to break even with a 3%
profit, assuming industrial and commercial classes are held flat, are
detailed below.  (See the Tariff sheet in red.)

 Domestic          8%
 LT Public Water Works    35.60%
 LT Agriculture and Poultry   26%
 Street Light     10.8%
 HT Agricultural & Poultry    26.9%
 Mula Pravara Electric Coop Soc.  24.30%
 Interstate sales       6.5%

It is obvious that  even the more realistic scenario would require strong
MSEB, state government and regulator resolve.

In a separate e:mail I will describe the cost of service study we have also
developed for MSEB.
---------------------- Forwarded by Jane Wilson/ENRON_DEVELOPMENT on
02/06/2001 11:08 AM ---------------------------

Heidi Hellmann

02/06/2001 09:43 PM

To: Jane Wilson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Ban Sharma/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Latest Model/Summary

Jane,

Attached is the latest summary (hard coded numbers, like I sent before) and
the latest cashflow model in case that is required for anything.

Just to confirm all that has changed are the customer categories and the MU's
in 1999-2000.


As you both may recall, we left unresolved whether our intention was to have
the credit derivatives tied to the applicable ISDA Master Agreement, if there
was any.  Mark's first thought was that they would always go under a GTC, but
after reflection, perhaps we might want them to go under the master.  We need
to get this resolved because there is no global contract assigned to any of
the credit derivatives online, which is causing much trouble between Global
Contract and the online crew.

Can you direct me as to what our approach will be.  Thanks.


---------------------- Forwarded by Rhonda L Denton/HOU/ECT on 03/13/2001
08:46 AM ---------------------------

Rhonda L Denton
02/12/2001 01:01 PM
To: John Kinser/HOU/ECT@ECT
cc:
Subject: FirstEnergy System to American Transmission Systems, Inc.

Please note below that American Transmission Systems is now handling
FirstEnergy's transmission.
---------------------- Forwarded by Rhonda L Denton/HOU/ECT on 02/12/2001
01:00 PM ---------------------------

Rhonda L Denton
12/04/2000 11:36 AM
To: Tim Belden/HOU/ECT@ECT, Dana Davis/HOU/ECT@ECT, Genia
FitzGerald/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Melissa Ann
Murphy/HOU/ECT@ECT, Kyle Schultz/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT,
Christi L Nicolay/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, Gretchen
Lotz/HOU/ECT@ECT, Dean Laurent/HOU/ECT@ECT, John D Suarez/HOU/ECT@ECT, Cara
Semperger/PDX/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Jan M King/HOU/ECT@ECT,
Mike Swerzbin/HOU/ECT@ECT, Mary Hain/HOU/ECT@ECT, Michael
Etringer/HOU/ECT@ECT, John Malowney/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT,
Laura Jones/HOU/ECT@ECT, Cyril Price/HOU/ECT@ECT, James E
Terrell/HOU/ECT@ECT, Corry Bentley/HOU/ECT@ECT, Matt Lorenz/HOU/ECT@ECT,
Thresa A Allen/HOU/ECT@ECT, David Portz/HOU/ECT@ECT, Sharen
Cason/HOU/ECT@ECT, Veronica Gonzalez/HOU/ECT@ECT, Kimberly Allen/HOU/ECT@ECT,
William S Bradford/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Christopher
Smith/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Russell Diamond/HOU/ECT@ECT, John
Suttle/HOU/ECT@ECT, Tanya Rohauer/HOU/ECT@ECT, Rod Nelson/HOU/ECT@ECT,
Stephanie Piwetz/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Leslie
Hansen/HOU/ECT@ECT, Russell T Kelley/HOU/ECT@ECT, Stewart Rosman/HOU/ECT@ECT,
Holli Krebs/HOU/ECT@ECT, Paul Choi/SF/ECT@ECT, Chris H Foster/HOU/ECT@ECT,
Sean Crandall/PDX/ECT@ECT, Diana Scholtes/HOU/ECT@ECT, Paul Mead/PDX/ECT@ECT,
Jeff Richter/HOU/ECT@ECT, Phillip Platter/HOU/ECT@ECT, Smith L
Day/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, D Brett Hunsucker/HOU/ECT@ECT,
Kim Ward/HOU/ECT@ECT, John M Forney/HOU/ECT@ECT, Edward D
Baughman/HOU/ECT@ECT, Kayne Coulter/HOU/ECT@ECT, John Kinser/HOU/ECT@ECT,
Robert Benson/Corp/Enron@Enron, Larry Valderrama/HOU/ECT@ECT, Paul J
Broderick/HOU/ECT@ECT, Edward Sacks/Corp/Enron@Enron, Janet H
Moore/HOU/ECT@ECT, Janice R Moore/HOU/ECT@ECT, Shari Stack/HOU/ECT@ECT, Kevin
M Presto/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect, Jesse Bryson/HOU/ECT@ECT,
Stanley Cocke/PDX/ECT@ECT, Michael M Driscoll/PDX/ECT@ECT, Doug
Gilbert-Smith/Corp/Enron@ENRON, Kimberly Hundl/Corp/Enron@Enron, Joy
Werner/Corp/Enron@ENRON, Elsie Lew/HOU/ECT@ECT, Amy Horton/Corp/Enron@ENRON,
Kim Durham/HOU/ECT@ECT, Rhonda Robinson/HOU/ECT@ECT, Rudy
Acevedo/HOU/ECT@ECT, Diana Allen/Corp/Enron@ENRON, Ted
Ballinger/NA/Enron@Enron, Don Baughman/HOU/ECT@ECT, Lisa
Burnett/Corp/Enron@Enron, Carla Hoffman/PDX/ECT@ECT, Mark Guzman/PDX/ECT@ECT,
Larry F Campbell/NA/Enron@Enron, Mike Carson/Corp/Enron@Enron, Alan
Chen/Corp/Enron@Enron, Jason Choate/Corp/Enron@ENRON, Lawrence
Clayton/Corp/Enron@Enron, Kevin Cline/Corp/Enron@Enron, Terri
Clynes/HOU/ECT@ECT, Keith Comeaux/Corp/Enron@Enron, Karla
Compean/HOU/ECT@ECT, Jason Crawford/Corp/Enron@Enron, Mike Curry/HOU/ECT@ECT,
Oscar Dalton/HOU/ECT@ECT, Clint Dean/Corp/Enron@Enron, Todd
DeCook/Corp/Enron@Enron, George Diaz/Corp/Enron@ENRON, Tom Dutta/HOU/ECT@ECT,
Joe Errigo/Corp/Enron@Enron, David Fairley/HOU/ECT@ECT, Miguel L
Garcia/NA/Enron@ENRON, Gerald Gilbert/HOU/ECT@ECT, Joe
Gordon/Corp/Enron@Enron, Brent Hebert/HOU/ECT@ect, Juan
Hernandez/Corp/Enron@ENRON, Wayne Herndon/Corp/Enron@ENRON, Jim
Homco/HOU/ECT@ECT, George Hopley/HOU/ECT@ect, Richard Hrabal/HOU/ECT@ect,
Rika Imai/NA/Enron@Enron, Alton Jackson/Corp/Enron@Enron, Larry
Jester/Corp/Enron@ENRON, Gary Justice/NA/Enron@Enron, MICHAEL
KELLY/ENRON@Gateway, Grace Kim/NA/Enron@Enron, Jeff King/Corp/Enron@Enron,
Madhup Kumar/Corp/Enron@ENRON, Justin Laverell/Corp/Enron@ENRON, Chris
Lenartowicz/Corp/Enron@ENRON, Peter Makkai/NA/Enron@Enron, Dave
Mangskau/Corp/Enron@ENRON, Posey Martinez/HOU/ECT@ECT, Tom
May/Corp/Enron@Enron, Keller Mayeaux/Corp/Enron@Enron, Doug
Miller/Corp/Enron@Enron, Jeffrey Miller/NA/Enron@Enron, Narsimha
Misra/NA/Enron@Enron, Steve Olinde/Corp/Enron@Enron, Andy
Pace/NA/Enron@Enron, Juan Padron/NA/Enron@Enron, Ricardo
Perez/NA/Enron@Enron, Joseph Piotrowski/NA/Enron@Enron, Joe
Quenet/NA/Enron@Enron, Bill Rust/HOU/ECT@ECT, David Ryan/Corp/Enron@ENRON,
Eric Saibi/Corp/Enron@ENRON, Zachary Sampson/NA/Enron@ENRON, Anna
Santucci/NA/Enron@Enron, Janelle Scheuer/HOU/ECT@ECT, Erik
Serio/Corp/Enron@Enron, Doug Sewell/HOU/ECT@ECT, Robert
Stalford/NA/Enron@Enron, Chad Starnes/Corp/Enron@Enron, Joe
Stepenovitch/Corp/Enron@Enron, Mark Symms/Corp/Enron@ENRON, Paul D
Thomas/NA/Enron@Enron, Greg Trefz/Corp/Enron@ENRON, Maria
Valdes/Corp/Enron@Enron, Joseph Wagner/NA/Enron@Enron, Christopher
Watts/NA/Enron@Enron, Lloyd Will/HOU/ECT@ECT, Jay Wills/Corp/Enron@ENRON,
George Wood/Corp/Enron@Enron, Alex Wong/Corp/Enron@Enron, Tracy
Ngo/PDX/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Lisa Lees/HOU/ECT@ECT, Valarie
Sabo/PDX/ECT@ECT, Fran Chang/PDX/ECT@ECT
cc:
Subject: FirstEnergy System to American Transmission Systems, Inc.

FirstEnergy System (FIRSTENESY) has assigned its transmission assets and
service agreements to American Transmission Systems, Inc.  (ATSI)  They are a
subsidiary of FirstEnergy Corp.  Their mnemonic reference changed from "FE"
to "ATSI."


---------------------- Forwarded by Darron C Giron/HOU/ECT on 09/05/2000
12:45 PM ---------------------------

"hollyw" <hollyw@email.msn.com> on 08/26/2000 10:55:20 AM
To: "Stacy Warren" <swarre02@coair.com>, "Sheri Thomas"
<Sheri.Thomas@enron.com>, "Rochelle Smith" <rochelle@waterengineers.com>,
"Raymond Paterson" <ray_paterson@hotmail.com>, "Nicol, Gary" <nicolg@bp.com>,
"Lori Horrocks" <loroks@yahoo.com>, "KRISTI GIRON" <KRISTI.GIRON@cfisd.net>,
"John Schmitz" <jschm@telxon.com>, "Jim Miller" <jraggie1@pdq.net>, "Janine
Gregor" <janine.gregor@talk21.com>, "Debbie \(Home\)" <jamoma3@cs.com>,
"Darron C Giron" <Darron.C.Giron@enron.com>
cc:
Subject: Fw: Nuff Said !

?
----- Original Message -----
From: dkerr2
To: hollyw@email.msn.com
Sent: Saturday, August 26, 2000 11:10 AM
Subject: Fw: Nuff Said !

Oh how true!
----- Original Message -----
From: Amanda M.  Hissey
To: Trace  Torrence ; Tip  Williams ; Randy Eddy ; Paul Quinn ; Matt Clark ;
Dan Kerr ; Christy  Geaslen ; Bob ; Ashley  Williamson
Sent: Friday, August 25, 2000 9:01 AM
Subject: FW: Nuff Said !

?
-----Original Message-----
From: jimreniers [mailto:jimreniers@msn.com]
Sent:  Friday, August 25, 2000 8:57 AM
To: Bowman, Bill; Trish Bullard; Davis  bob HOME; Davis, Bob L; Gillen
Andrew; Hissy, Mandy; Lamm,Dennis; Lamm, Miles;  Macdonald, Don;
MGuinnSr@aol.com; Moore,  Pat; Ann Parker; Pfleghar,Dave; PAUL SRO; Torance
Trace
Subject: Fw:  Nuff Said !

?
Subject: Fw: Nuff Said !

?
 - species2.htm


Just a reminder not to use the form Master Netting Agreement that was attached to the e-mail notification sent yesterday.  You will be receiving a new form later today.

Thanks!

Marie


Theresa:  thanks for all your help over the last week.  We really appreciate
it and are glad we can cooperate so closely with the Denver office.  If you
need anything, let us know.  Again, Thanks.


I think Jeff should be the point person on putting the response together on
this (and future air and climate change position inquiries).  Jeff - please
make sure you get the comments of all involved.

Jeffrey Keeler
04/17/2001 05:02 PM
To: Michael Terraso/OTS/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Kelly
Kimberly/Enron Communications@Enron Communications, Lauren
Iannarone/NY/ECT@ECT, Catherine McKalip-Thompson/Enron Communications@Enron
Communications, Lisa Jacobson/ENRON@enronXgate, Mark Palmer/Corp/Enron@ENRON
cc:

Subject: Re: Greenpeace letters to Enron Europe concerning our position on
Kyoto

All:  I would like to discuss how we might respond to this letter from
Greenpeace, if at all.  The letter is attached way at the bottom of this
e-mail, and was received in several Enron European offices as a copy of what
was sent to Jeff Skilling and other CEOs of major companies.  I have not
confirmed our receipt of such a letter from any of you, but am assuming it
was delivered.

I think we could respond in a very positive, constructive manner to
Greenpeace, based on the statements we've already documented and the
strategies we are developing.  Lisa Jacobson and I are currently working on
developing some tighter climate change and clean air "messages" that we can
use in multiple areas ASAP -- upcoming Ken Lay speeches and interactions with
the Administration, revising the Statement for the 2001 Corporate
Responsibility Report, Enron Business articles and other internal uses,
responses to environmental group inquiries and shareholder meeting Q&A, and
use in everyday speeches and advocacy work.

The Greenpeace questions are tricky, and set up no-win answers for the most
part.  I doubt they will get any direct answers to questions like:  "Does
your company support President Bush in his opposition to the protocol?"   In
my opinion, we can respond to Greenpeace without directly responding to these
types of questions.  Addressing Kyoto directly is a slippery slope -- its
best to stick with the solution-oriented approach we've always taken.

For this reason, I was a bit concerned to see in the e-mail chain below a
characterization of Mark Palmer's statement on Kyoto (given to Jackie Gentile
in London) -- "Enron has always taken the view that the Kyoto protocol was
not a workable solution to dealing with CO2 emissions.  However it is not the
principles behind Kyoto that we take issue with, rather it is the vehicle
that has been devised to deliver the results."  I believe it is dangerous to
make such statements for a number of reasons -- Greenpeace would absolutely
beat us over the head with it, Friends of the Earth could step up its
shareholder initiatives, etc.    Also, this sets you up for a number of
follow up questions that I don't think we have answers to, like:  What about
Kyoto is not workable?  What would make it workable and would we help make it
workable?  If not Kyoto, what is Enron's preferred "vehicle?"  I'd really
rather stay with a constructive, solution-oriented approach and avoid
reference to Kyoto altogether.

I will talk with Kate Bauer in Enron Europe about this, but I think we need
to decide on a global, corporate-wide response to Greenpeace.   I would be
happy to set up a quick conference call on the subject, or just field
comments by e-mail -- whatever works best.

Thoughts?

Jeffrey Keeler
Director, Environmental Strategies
Enron
Washington DC office - (202) 466-9157
Cell Phone (203) 464-1541

	Lauren Iannarone@ECT
	04/17/2001 11:20 AM

		 To: Jeffrey.Keeler@enron.com
		 cc:
		 Subject: Re: Greenpeace letters to Enron Europe concerning our position on
Kyoto

FYI:  I  defer to you on this but assume we are in a good position to respond
to Greenpeace.  I assume you will discuss with Kate and Peter - let me know -
thanks

---------------------- Forwarded by Lauren Iannarone/NY/ECT on 04/17/2001
11:37 AM ---------------------------

Peter.Styles@enron.com on 04/17/2001 09:42:40 AM
To: Kate.Bauer@enron.com
cc: lauren.goldblatt@enron.com, kelly_kimberly@enron.net,
Fiona.Grant@enron.com, Jackie.Gentle@enron.com, Stacey.Bolton@enron.com,
Nailia.Dindarova@enron.com

Subject: Re: Greenpeace letters to Enron Europe concerning our position on
Kyoto

Thanks Kate. Please keep Nailia Dindarova in my Brussels office and me
copied on responses since I will be co-ordinating any pronouncements on
this topic in Europe in policymakers' circles. For them neither the
negativity nor the vagueness of the words you quote below (on which Mark
and Jackie already know my views!) will be adequate.

Kate Bauer@ENRON
17/04/2001 15:36

To:   lauren.goldblatt@enron.com
cc:   kelly_kimberly@enron.net, Fiona Grant/LON/ECT@ECT, Jackie
      Gentle/LON/ECT@ECT, Peter Styles/LON/ECT@ECT

Subject:  Re: Greenpeace letters to Enron in the Netherlands and Spain re
      our position on Kyoto

Lauren

Further to my telephone message today, I would be grateful for your view on
the approach we should be taking to the issue of Greenpeace sending letters
to our European offices re: Kyoto. Several of our offices (Spain, Belgium,
Netherlands) have received a local language version of the letter
originally sent to Jeff Skilling, and other CEOs, on 5 April 2001. The
email chain below gives an indication of what is in circulation.

Greenpeace is expecting a response within the next week. Jackie Gentle has
made me the point of contact in the PR department for this issue. We have
discussed this issue briefly and we would support issuing an initial
statement to acknowledge receipt of the letters, perhaps followed by a
standardised, corporate- approved letter, but would like to ensure our
approach is supported, and consistent with any actions, by Corporate. As
some of the countries in which we operate have tangible "green" focused
projects e.g. we have acquired a wind project in The Netherlands, it may be
appropriate to allow such countries to personalise their response in local
language.

If we follow up an initial acknowledgement with a fuller response to
Greenpeace's questions, I suggest we consider the following issues raised
recently by Jackie Gentle:

"In response to several requests for clarification, I have spoken with Mark
Palmer who has provided the following information on Enron's stance
regarding Kyoto:

Enron has always taken the view that the Kyoto protocol was not a workable
solution to dealing with CO2 emissions.  However it is not the principles
behind Kyoto that we take issue with, rather it is the vehicle that has
been devised to deliver the results.

We firmly believe that there is work to be done in reducing greenhouse
gases and Enron has put in place a number of programs that have measurably
reduced carbon dioxide as well as SO2 and Oxides of Nitrogen (Nox)

By way of example ....
   emissions trading programs have been put in place where these can be
   implemented
   Enron is one of the largest developers of natural gas-fired power plants
   which produce about 50 percent less carbon dioxide than coal or
   oil-fired plants
   demand-side management programs through EES to reduce energy usage
   the Catalytica program
   focus on renewable-related projects

At the current time there is no formal statement from Enron Corp on the
Kyoto issue."

Before we proceed, I would be grateful if you could contact me to share
your views on this.

Many thanks.
Best regards
Kate

Kate Bauer
Manager Public Relations and Communications
ext: 32495

---------------------- Forwarded by Kate Bauer/EU/Enron on 17/04/2001 14:14
---------------------------

Nailia Dindarova@ECT
17/04/2001 13:28

To:   Peter Styles/LON/ECT@ECT
cc:   Eva Hoeffelman/LON/ECT@ECT, Jackie Gentle/LON/ECT@ECT, Julie
      Green/LON/ECT@ECT, Mark Palmer/Corp/Enron@ENRON, Fiona
      Grant/LON/ECT@ECT, Andrew Morrison/LON/ECT@ECT, Hans-mart
      Groen/Enron@EUEnronXgate, Ross Sankey/LON/ECT@ECT, Kate
      Bauer/EU/Enron@Enron, Paul Hennemeyer/LON/ECT@ECT, Teun Van
      Biert/LON/ECT@ECT

Subject:  Re: Greenpeace letters to Enron in the Netherlands and Spain re
      our position on Kyoto  (Document link: Kate Bauer)

We have now recieved a letter from Greenpeace Belgium here in the Brussels
office (please see attached).

(See attached file: Greenpeace Belgium_Letter April 13 2001.tif)

Peter Styles
17/04/2001 11:59

To:   Stacey Bolton/Corp/Enron@Enron, Rob Bradley/Corp/Enron@ENRON, Richard
      Shapiro/NA/Enron@Enron
cc:   Nailia Dindarova/LON/ECT@ECT, Alfredo Huertas/LON/ECT@ECT, Teun Van
      Biert/LON/ECT@ECT

Subject:  Greenpeace letters to Enron in the Netherlands and Spain re our
      position on Kyoto

As I was saying in my e-mail a few minutes ago......................

---------------------- Forwarded by Peter Styles/LON/ECT on 17/04/2001
12:01 ---------------------------

Eva Hoeffelman
17/04/2001 12:52

To:   Jackie Gentle/LON/ECT@ECT, Axel_Pothof@nl.bm.com
cc:   Julie Green/LON/ECT@ECT, Peter Styles/LON/ECT@ECT, Mark
      Palmer/Corp/Enron@ENRON, Fiona Grant/LON/ECT@ECT, Andrew
      Morrison/LON/ECT@ECT, Hans-mart Groen/Enron@EUEnronXgate, Ross
      Sankey/LON/ECT@ECT, Kate Bauer/EU/Enron@Enron, Paul
      Hennemeyer/LON/ECT@ECT, Teun Van Biert/LON/ECT@ECT

Subject:  Greenpeace letter to Enron in the Netherlands re our position on
      Kyoto

Please find below the Greenpeace letter our Dutch office received today (as
has our Spanish office).  Their deadline for our answers to their questions
is before 26 April.  I am asking our PR agency in the NL to translate the
letter asap.

In the mean time, I will wait for direction on our official corporate
response on this issue and then discuss suitability or possible adaptation
for the Dutch market or for this letter in particular.

I have advised Hans-Mart to make sure all employees in the Dutch office do
not reply to any calls or queries re the above ubject and to refer them to
me.

Thanks
Eva
---------------------- Forwarded by Eva Hoeffelman/LON/ECT on 04/17/2001
11:36 AM ---------------------------

London Fax System2
04/17/2001 11:26 AM

To:   Eva Hoeffelman/LON/ECT@ECT
cc:

Subject:  New fax received (Likely sender: +31 0 206541966).

You have received a new fax from +31 0 206541966

The image contains 1 page(s).

 - Greenpeace Belgium_Letter April 13 2001.tif