Hi Vince, Paulo Oleira (one of the M.I.T attending our meeting on wed)'s
research interest turned out to be a match for April Hodgeson (VP of content
origination). I had him talk to April (Stinson was on the call as well) to
discuss his research interest and what he would likely to do for April.  I
suggested (and April agrees) that Paulo would intern with her and Matt and
perform research on how end users (consumers and business) improved
experience with ePowered content can be quantified.  This may include
performing control experiments at M.I.T.  We decided not to over specify what
he would do since it is likely to change as soon as he arrives.  I suggested
once he starts, he will work with April and Matt Harris (VP enterprise
origination) and they will define what the student needs to complete for the
internship.

Addiontionally, Tom Gros agrees that this type of research are needed and
this is a great way to start.

I will proceed to have recruiting contact the student with an offer to start
around May 22, 2000 unless someone tells me otherwise.

Regards,

Ravi.

P.S. Charlene, please include Paulo in your May 22, 2000 start group.  Paulo
will report to me within EBS research group but will work on a day-to-day
basis with April and Matt. As you've mentioned that compensation is somewhat
fixed but please keep in mind that this person is a PhD candidate with very
specialized skill set. Please contact Vince before extending an offer that
may be too low, etc.

----- Forwarded by Ravi Thuraisingham/Enron Communications on 02/17/00 09:27
AM -----

	Charlene Jackson@ENRON
	02/17/00 08:25 AM

		 To: Vince J Kaminski/HOU/ECT@ECT
		 cc: Celeste Roberts/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Ravi
Thuraisingham/Enron Communications@Enron Communications@ECT
		 Subject: Re: Summer Internship Position

Celeste,

We need to make sure that the interns in Vince's group are coordinated and
incorporated with the rest of the summer associates.  They should be offered
the same starting dates, I believe they are May 22, 2000 June 5, 2000.  I am
not sure about the June date.  Would you check and let Vince know.  They
should also be offered the same starting salary package as the others.  They
will be included in training (a few days) and any other events we host.
Thanks


Louise,

As you know, we were told during today's Integration Committee call that Marketing's and Legal's text changes for the
website would be accepted any time today. Following the call, however, I was told that the noon deadline was firm, but
we could make minor text changes on Thursday. Based on that information, we forwarded partial comments to Kal Shah by
noon. In a late afternoon email, I found out that we will not be able to complete our changes until perhaps five days
after the site goes live.

We appreciate the pressure and long hours people in Houston are putting into getting the site up and running. We applaud
their efforts and do not wish to add to their burden. I tell you this only to make you aware of our situation, should
any problems arise because of the unedited text. Hopefully, if anything does arise, problems can be easily and quickly
corrected.

Please call me at 212-713-8508 if you have any questions or if I can help you in any way.

Thank you,

Claudia Robinson
Director, Employee Communications, UBS Americas Inc.

-----Original Message-----
From: Louise.Kitchen@enron.com [mailto:Louise.Kitchen@enron.com]
Sent: Tuesday, February 05, 2002 6:59 PM
To: Robinson, Claudia; Kal.Shah@enron.com
Cc: Petrie, James [UBS]; Eber, Louis [UBS]; Brady, Penny [UBS]; Keily,
Ruth [UBS]; Mitchell, Nikki [UBS]; Bridges, Mark [UBS];
David.Forster@enron.com; Hollis, Amanda [UBS]; ODonnell, Pat [UBS]; Dow,
Colette [UBS]; louise@enron.com
Subject: RE: Web content

Fine by me.  The site will go live this week-end in preparation for Monday
morning.

    -----Original Message-----
   From:   "Robinson, Claudia" <claudia.robinson@ubsw.com>@ENRON
   Sent:   Tuesday, February 05, 2002 12:04 PM
   To:     Shah, Kal
   Cc:     Petrie, James [UBS]; Eber, Louis [UBS]; Brady, Penny [UBS];
             Keily, Ruth [UBS]; Mitchell, Nikki [UBS]; Bridges, Mark [UBS];
             Forster, David; Hollis, Amanda [UBS]; ODonnell, Pat [UBS];
             Dow, Colette [UBS]; 'louise@enron.com'
   Subject:  FW: Web content
   Importance:  High

   Kal,

   Below are preliminary comments from Communications and Marketing on the
   Web content. We will be making more minor
   changes on Thursday, during the final review process, and review the
   site once it goes live next week.

   I sent comments from Legal to you earlier today.

   Please let me know if you have questions.

   Claudia
   212-713-8508

   -----Original Message-----
   From: Halligan, Laura [UBS]
   Sent: Tuesday, February 05, 2002 1:00 PM
   To: Robinson, Claudia
   Subject:
   Importance: High

   Here is marked version of web text.  Only got to page 3...

   Laura Halligan
   Associate Director
   Manager, Marketing Services
   UBS Warburg Americas

    - webtext.doc << File: webtext.doc >>

   Visit our website at http://www.ubswarburg.com

   This message contains confidential information and is intended only
   for the individual named.  If you are not the named addressee you
   should not disseminate, distribute or copy this e-mail.  Please
   notify the sender immediately by e-mail if you have received this
   e-mail by mistake and delete this e-mail from your system.

   E-mail transmission cannot be guaranteed to be secure or error-free
   as information could be intercepted, corrupted, lost, destroyed,
   arrive late or incomplete, or contain viruses.  The sender therefore
   does not accept liability for any errors or omissions in the contents
   of this message which arise as a result of e-mail transmission.  If
   verification is required please request a hard-copy version.  This
   message is provided for informational purposes and should not be
   construed as a solicitation or offer to buy or sell any securities or
   related financial instruments.

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged
material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is
strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact
the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message.
This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or
evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or
any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you.
**********************************************************************

Visit our website at http://www.ubswarburg.com

This message contains confidential information and is intended only
for the individual named.  If you are not the named addressee you
should not disseminate, distribute or copy this e-mail.  Please
notify the sender immediately by e-mail if you have received this
e-mail by mistake and delete this e-mail from your system.

E-mail transmission cannot be guaranteed to be secure or error-free
as information could be intercepted, corrupted, lost, destroyed,
arrive late or incomplete, or contain viruses.  The sender therefore
does not accept liability for any errors or omissions in the contents
of this message which arise as a result of e-mail transmission.  If
verification is required please request a hard-copy version.  This
message is provided for informational purposes and should not be
construed as a solicitation or offer to buy or sell any securities or
related financial instruments.


---------------------- Forwarded by Kay Mann/Corp/Enron on 10/10/2000 09:14
AM ---------------------------

	Enron North America Corp.

	From:  Kay Mann                           10/10/2000 09:13 AM

To: Sheila Tweed/HOU/ECT@ECT, al.larsen@enron.com
cc:

Subject: LM6K Change Order #2

I believe this to be the latest draft of the PSCO change order.
Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 10/10/2000 09:11
AM ---------------------------
From: Kathleen Clark@ENRON_DEVELOPMENT on 10/05/2000 05:36 PM
To: Kay Mann/Corp/Enron@ENRON, Ben Jacoby/HOU/ECT@ECT, Chris.booth@enron.com
cc:

Subject: LM6K Change Order #2

Kay, Ben & Chris:

Attached is the latest draft of Change Order #2 for your review & input:

Kathy


please remind me of this meeting
 -----Original Message-----
From: 	Davis, Sarah A.
Sent:	Monday, October  15, 2001 2:01 PM
To:	Neal, Scott
Subject:	Focus Group
Importance:	High

REMINDER

Enron Vice President Focus Group
Tuesday, Sept. 16
4:00-5:00
EB16C1

Thanks for your participation!

Sarah A. Davis
Director of Resource Mgmt, WorkLife & Employee Relations
713/853-5328
Fax 713/646-8498
sarah.a.davis@enron.com


Ben decided to send the exhibits to Coral, so that's where this question came
from.

Will we have an exhibit U?

I know we owe you some answers from your email of the 6th.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 12/11/2000 05:41
PM ---------------------------

	From:  Ben F Jacoby @ ECT                           12/11/2000 05:25 PM

Sent by: Ben Jacoby@ECT
To: Kay Mann/Corp/Enron@Enron, Chris Booth/NA/Enron@Enron
cc:

Subject: Performance guarantees

Any ideas on this?

Ben
---------------------- Forwarded by Ben Jacoby/HOU/ECT on 12/11/2000 03:48 PM
---------------------------

"Seigler, Tom" <tseigler@coral-energy.com> on 12/11/2000 04:50:15 PM
To: "'Ben.F.Jacoby@enron.com'" <Ben.F.Jacoby@enron.com>
cc:
Subject: Performance guarantees

Ben, Exhibit U indicates that liquid fuel guarantees are in Sec. 10.8.4.  I
could not fine them in that section.  Could you point me to where the liquid
fuel guarantees are located?

Tom Seigler
713-767-5672
Fax: 713-265-5672


-----Original Message-----
From:  Ahn, Christopher
Sent: Wednesday, April 04, 2001 3:05 PM
To: Rorschach, Reagan
Subject: re: ERCOT QSE Boiler Plate

Reagan,

Here is the Boiler plate that Michelle was talking about

-Chris


The Buzz  Thursday, September 14, 2000

Due to server difficulties, The Buzz was sent out Thursday.

In The Buzz this week:

EES Closes Sony Electronics Deal: EES just closed a fixed-price commodity
deal with San Diego,s largest energy user, Sony Electronics, Inc. Sony is
just one of many deals that closed in August through the collaborative
efforts of the Market Development group. The objective of the group is to
streamline processes and procedures to close more commodity deals faster.
Market Development, Origination, Commodity Structuring, Risk Management,
Account Implementation Planning (AIP), Legal, and Regulatory Affairs joined
forces to create an easy-to-close scenario for the California markets. A
daily executable price sheet and ready-to-use short form contract are
products that were developed from this effort. EES Market Development scored
their first hits in San Diego last month. Four additional deals that have
recently closed include Burlington Coat Factory, WW San Diego Harbor Island*
Travel Lodge, Martin Furniture, and La Jolla Pharmaceuticals. Congratulations
to the deal team and to Market Development. Click on link to learn who was
involved:
http://inet.ees.enron.com/vision/comm/eespeople/

Enron Building Services Takes on 100 New Employees from Springs: As part of
our agreement with Springs Industries, Springs has contracted with Enron
Building Services for facilities management work that includes the operation
of Springs, in-house power plants as well as their heating and
air-conditioning systems. About 100 workers at Springs will be assumed by
Enron Building Services. Springs reported that this is part of a continuing
effort to bring a higher level of expertise to their mechanical
infrastructure. Springs spokesman Ted Matthews stated that &Springs is
proficient in making home fashions and sheets, but doesn,t have experience in
running power plants.8

Two of Our Customers in Wall Street Journal Cover Articles: Two of our EES
customers are getting bigger. Chase Manhattan has agreed to acquire J.P.
Morgan for approximately $36 billion. Chase, with over $360 billion in
assets, is one of the world,s leading financial institutions. The Wall Street
Journal also reported that Quebecor World was negotiating an acquisition of
the cable company Videotron. Quebecor World is a diversified global
commercial printing company offering customers state-of the art- printing
capabilities, plus related value added printing services.

Skilling Makes Plea for FERC to Control Monopoly Transmission System Abuses:
Enron President and COO Jeffrey Skilling told a National Press Club
conference in Washington, D.C., that &the U.S. wholesale market for
electricity is the most screwed up8 of all the deregulating markets in which
Enron participates globally. Skilling urged the Federal Energy Regulatory
Commission (FERC) to use its influence to ensure open access to the nation,s
transmission grid. According to Skilling, Enron,s attempts to schedule power
transactions have often been denied because of &alleged capacity shortages,8
yet transmission-owning utilities turn around and use the requested capacity
for their own generation facilities to move power along the same route.
Skilling pointed to the fact that access to the transmission grid is hindered
by barriers controlled by monopolies, stating &We need some very strong
action to ensure that the system is open and that people can get power from
places where it is available to places where it is needed.8 Skilling, who
went on to say that the solution would be for FERC to eliminate inconsistency
in the application of market rules to participants and ensure that the
transmission system is opened up and nondiscriminatory. Click on link to read
article:
http://eeshou-dowj1.ees.enron.com/pagebuilder/viewarticle.asp?folderid=1&AN=RT
R0025031699

Some Interesting Facts: Peak demand for electricity has risen 11 percent in
the U.S. since 1995, while reserve margins for excess power capacity dropped
14 percent since 1997. Instances of so called transmission loading reliefs*or
system failures*have soared 300 percent since 1998.

California Update: Two electric utilities, Southern California Edison (SCE)
and Pacific Gas and Electric (PG&E), who serve 90 percent of Californians,
want to renege on the deregulation deal from 1996 that prevents SCE and PG&E
from passing high electricity costs onto their customers until 2002. Last
week, SCE and PG&E lobbied unsuccessfully to pass legislation that would have
allowed them to add a surcharge to consumer bills from 2002 to 2006. Instead,
the legislature passed a relief bill last week for the states,s smallest
utility, San Diego Gas & Electric (SDG&E). Through the law, which imposes
rate freezes in San Diego, SDG&E consumers and state taxpayers are expected
to repay the higher prices over time, including interest. PG&E has paid $2
billion from May through June for higher electricity prices without passing
those costs to its users. That amount is expected to rise to many more
billions until the rate ends, if prices stay at high levels. Wholesale prices
have soared to 25 cents a KWh, which calculates into five times the six cents
a KWh charged just a year ago.

Seeking Nominations for the EES Chairman,s Award: Recognizing an individual
who has gone above and beyond the parameters of his or her job and has
demonstrated exemplary performance, EES Chairman's Award nominations for the
third quarter are due September 30. Nomination forms can be found on the
vision site under EES people.

If you missed Mark Harada,s Brown Bag Check it out Online: Mark,s Brown Bag
discussed electric deregulation in Illinois and how Commonwealth Edison
services to customers fall short of those provided by EES: Click on link to
view video of Brown Bag:
http://eeshou-etv02.ees.enron.com/brownbags/bb_marcharada/index.html


EDF is terminating its line with us today.  Sarah


FROM STEVE KEAN:  PLEASE DO NOT COPY OR FOWARD THIS EMAIL

           DRAFT

To:	Enron Employees Worldwide

From:	Ken Lay and Jeff Skilling

Subject:	Organizational Changes	Date:	February 6, 2001

 Enron is forming a new organization - - the Enron Accelerator - - to drive
the formation and development of new businesses at Enron.  Enron,s unique
ability to start and develop new businesses has driven most of our growth
over the years.  Lou Pai, currently Chairman and CEO of Enron Energy Services
will lead the Accelerator.  Over his years at Enron, Lou has been key to the
creation and rapid growth of our wholesale gas, wholesale power and energy
service businesses.  The existing business units will continue their new
business development activities, while the Accelerator will be focused on
identifying new business opportunities which are natural extensions of Enron,
s business model and core skills, but not currently under development within
Enron.

 Dave Delainey, currently President and CEO of Enron Americas, will become
Chairman and CEO of Enron Energy Services.  Dave brings a wealth of
experience and accomplishment from Enron Wholesale Services, businesses where
he led phenomenal growth in our Canadian business and our North American
origination activity, and, most recently, had a stellar year in Enron
Americas.

 Joining Dave in EES will be Janet Dietrich, currently Managing Director in
Enron Americas.  Janet will assume responsibilities as _____________________
of EES.  Janet has led an extremely successful origination team in Enron
Americas.  Together, Janet and Dave will bring extraordinary commercial
skills to the already outstanding EES team.

 In connection with these leadership changes at EES, Dan Leff and Marty Sunde
will assume responsibility as ________________ and ______________
respectively at EES.  Together with Tom White, Vice Chairman of EES, Dan and
Marty have led the development and execution of a highly successful business
model at EES.  This new leadership structure will enable EES to continue on
its path of rapid growth and profitability over the coming years.

 John Lavorato will succeed Dave as President and CEO of Enron Americas.
John has been an essential part of Enron,s energy trading success over the
years and is a key part of Enron Wholesale Services, continuing success
story.  Joining John is Louise Kitchen, currently President and CEO of Enron
Networks.  Louise, who accelerated Enron,s phenomenal growth with the
deployment of EnronOnline, will take over as Chief Operating Officer of Enron
Americas.

 Philippe Bibi, currently Chief Operating Officer of Enron Networks will take
over as President and CEO of Enron Networks.  Under Philippe,s leadership,
Enron has become a technology powerhouse and the leading e-commerce company.
Joining Philippe as Chief Operating Officer is Greg Piper, currently Managing
Director of Enron Networks.  Greg ____________________________

 Please join us in congratulating all of these individuals on their
achievements and their new responsibilities.

 [Policy Committee Changes?]

 [In addition, a number of individuals have elected to leave Enron.  David
Haug, currently Executive Vice President of Enron and formerly Chairman and
CEO of Enron CALME, has elected to leave Enron to pursue other
opportunities.  David initiated and oversaw the successful transition of
CALME into Enron Wholesale Services while continuing to meet financial
targets for his organization.  Also leaving Enron are Diomedes Christodoulou,
Chief Commercial Officer of Enron Broadband Services; James Bannantine,
formerly CEO of Enron South America; and Sanjay Bhatnagar, CEO of Enron
Broadband Services for the Middle East and Asia.  Diomedes, Jim and Sanjay
built and led strong and talented teams at Enron.  We wish all of these
individuals the very best in their new endeavors.]


Thanks for the explanation, Diana!

Kate


test

Debra Perlingiere
Enron North America Legal
1400 Smith Street, EB 3885
Houston, Texas 77002
Debra.Perlingiere@enron.com
713-853-7658
713-646-3490 Fax


Those of you who know Tarcy will want to know that he passed away last night after suffering an aortic aneurysm at work. Last night at around 1000 PM, he passed away as they were completing his surgery, due to a second aneurysm.  Please pass this on we will keep you posted about the services.

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

This email is confidential and may be legally privileged.

It is intended solely for the addressee. Access to this email by anyone else, unless expressly approved by the sender or an authorized addressee, is unauthorized.

If you are not the intended recipient, any disclosure, copying, distribution or any action omitted or taken in reliance on it, is prohibited and may be unlawful. If you believe that you have received this email in error, please contact the sender, delete this e-mail and destroy all copies.

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


Chris, as per our discussion, I just want to confirm that we have the ability
to break the contract with the EPC provider at any time.  Further, I want to
confirm that our costs will be minimal and that this whole process (ie
putting a number on a term sheet) has been based on trying to maximize the
short run value of the project.  In other works, we have no intention of
lifting their offer.  Finally, we are not ordering HRSG's or steam turbines.

These guys add no value and they are killing me!

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 09/26/2000
07:14 PM ---------------------------

David W Delainey
09/26/2000 07:12 PM
To: Dick Westfahl/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Larry L
Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject: Las Vegas CoGen

Guys, I have explained the strategy/tactics that have lead to this position
in some detail.  In my opinion the company is not at risk and potentially ENA
could create significant value from a project that we have very little
invested.  I understand the construction risk on the bid as much as anyone
and we have no intention of lifting their offer. As far as EECC involvement,
as I had mentioned, Coleman was a part of all these discussions.  I will
argue that Mike and the ENA deal team made the right call necessary to
maximize return in the short run for Enron without investing significant
dollars or taking significant risks.

Obviously, I was unsuccessful in explaining such a sophisticated strategy.

Regards
Delainey

---------------------- Forwarded by David W Delainey/HOU/ECT on 09/26/2000
07:01 PM ---------------------------

Dick Westfahl@ENRON_DEVELOPMENT
09/26/2000 09:30 AM
To: Dave Delainey
cc: Larry L Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Las Vegas CoGen

Dave:

See attached memo.

Thanks,

Dick


---------------------- Forwarded by Shanna Husser/HOU/EES on 12/07/2000 07:38
AM ---------------------------

LHusser@aol.com on 12/06/2000 11:05:08 PM
To: shusser@enron.com
cc:
Subject: Fwd: The Texas Version of Survivor

Return-path: <Arutha504@aol.com>
From: Arutha504@aol.com
Full-name: Arutha504
Message-ID: <3a.dc8f548.27606fc3@aol.com>
Date: Wed, 6 Dec 2000 23:44:51 EST
Subject: The Texas Version of Survivor
To: Terri1801@aol.com, FINNTTF@aol.com, CGolmon@aol.com, LISABGRUBBS@aol.com,
CHOOSIER41@aol.com, LHusser@aol.com, Cktlaz1@aol.com,
kleyser@RedRiverBank.net, amasden@hotmail.com, Insane824@aol.com,
vmiller48@hotmail.com, LAM0951@aol.com, MollyeMon@aol.com, ONeal415@aol.com,
tarver01@bellsouth.net, SWilli8831@aol.com
MIME-Version: 1.0
Content-Type: multipart/alternative;
boundary="part2_57.e798a6e.27606fc3_boundary"
Content-Disposition: Inline
X-Mailer: Unknown sub 171

Texas Survivor Network Television is developing a "Texas Version" of
"Survivor," the popular TV show.

Contestants must travel from Amarillo through Fort Worth, Dallas, Houston,
College Station, San Antonio, through San Marcos and Lubbock, and back to
Amarillo driving a Volvo with a bumper sticker that reads: "I'm for Gore, I'm
Gay, and I'm Here to Take Your Guns."

The first to complete the round trip is the winner.

This email was cleaned by emailStripper, available for free from
http://www.printcharger.com/emailStripper.htm


---------------------- Forwarded by Julia H Chin/NA/Enron on 09/28/2000 02:03
PM ---------------------------

ELim@milbank.com on 09/27/2000 09:10:41 PM
To: barry.schnapper@enron.com, dan.boyle@enron.com,
trevor.randolph@enron.com, brian.steinbrueck@enron.com,
julia.h.chin@enron.com, gina.karathanos@enron.com, annmarie.tiller@enron.com,
Brent.Vasconcellos@enron.com, clint.walden@enron.com, ryan.siurek@enron.com,
lnath@dlj.com, dscott@dlj.com, dcapolon@dlj.com, lmallett@dlj.com,
mbdavis@dlj.com, dhemsey@dlj.com, cwebb@dlj.com, mprotz@dlj.com,
mcho@dlj.com, czhu@dlj.com, paul.f.cambridge@db.com, mike.jakubik@db.com,
craig.orchant@db.com, george.tyson@db.com, ross.newman@db.com,
maia.babbs@db.com, ute.muenstermann@db.com, peter.zabel@db.com,
joseph.kopec@db.com, alan.coster@db.com, mspradling@velaw.com,
rastin@velaw.com, eosterberg@velaw.com, tchandler@velaw.com,
crankin@velaw.com, pwarman@velaw.com, silversteina@sewkis.com,
sbaratta@sewkis.com, aroberts@wilmingtontrust.com,
jlawler@wilmingtontrust.com, gmitchell@ustrust.com, lyoung@ustrust.com,
mazie@rlf.com, hoffner@rlf.com, tom.mazza@deweyballantine.com,
joan.wheatley@deweyballantine.com, hershel.wein@deweyballantine.com,
robert.frastai@deweyballantine.com, ghall1@lehman.com, vforte@lehman.com,
scutter@lehman.com, kimberly.blue@ubsw.com, scott.whitney@ubsw.com,
michael.hynes@ubsw.com, tom.mcerlean@ubsw.com, peter.o'malley@csfb.com,
jeffrey.blum@csfb.com, kathy.lynn@ljminvestments.com, mkahne@lehman.com,
dstark@stonehurstcapital.com, scristman@nixonpeabody.com,
drevers@jhancock.com, hovey.ken@principal.com, goldm@tcwgroup.com,
insulj@tcwgroup.com, aweed@jhancock.com, watts.joellen@principal.com,
millem@tcwgroup.com, moores@moodys.com, ronald_barone@standardandpoors.com,
john_oconnor@fitchratings.com
cc: TDavis@milbank.com, JGallup@milbank.com, BKayle@milbank.com,
AWalker@milbank.com, KRiester@milbank.com

Subject: Osprey II - Enron Agreement

Attached, please find a revised draft of the Enron Agreement for the Osprey
II transaction.? It has been marked against the draft dated 9/8/00.? Please
note that this draft is being simultaneously distributed to our clients and
therefore remains subject to their review.? Please do not hesitate to contact
me if you have any questions or comments.

Best regards,
Evelyn Lim

 <<Enron Agreement.doc>>

This e-mail message may contain legally privileged and/or confidential
information. If you are not the intended recipient(s), or the employee
or agent responsible for delivery of this message to the intended
recipient(s), you are hereby notified that any dissemination,
distribution or copying of this e-mail message is strictly prohibited.
If you have received this message in error, please immediately notify
the sender and delete this e-mail message from your computer.

 - Enron Agreement.doc


EnronOnline
Trade Counts and Volume for May 07, 2001
			EXTERNAL		INTERNAL		TOTAL
COUNTRY	COMMODITY	CATEGORY	COUNT	QTY	COUNT	QTY	COUNT	QTY	UNIT OF MEASURE
Austria	Power	Physical	          7 	           10,701 	        -   	                   -   	           7 	           10,701 	MWh
Canada	Natural Gas	Financial	        16 	    10,215,000 	          4 	           84,000 	         20 	    10,299,000 	MMBtu
Canada	Natural Gas	Financial Option	          5 	         459,000 	        -   	                   -   	           5 	         459,000 	MMBtu
Canada	Natural Gas	Physical	      242 	      5,358,258 	        -   	                   -   	       242 	      5,358,258 	MMBtu
Canada	Power	Financial	        15 	             2,544 	          1 	                  24 	         16 	             2,568 	MWh (Canada)
France	Power	Physical	          8 	         134,440 	        -   	                   -   	           8 	         134,440 	MWh
Germany	Power	Physical	        70 	      1,023,169 	        -   	                   -   	         70 	      1,023,169 	MWh
Netherlands	Power	Physical	          2 	           58,692 	        -   	                   -   	           2 	           58,692 	MWh
Norway	Power	Financial	        13 	         344,520 	        -   	                   -   	         13 	         344,520 	MWh
Switzerland	Power	Physical	        17 	             8,830 	        -   	                   -   	         17 	             8,830 	MWh
United Kingdom	Metals	Financial	          5 		        -   		           5 	                   -   	LME Registered  mt Lot
USA	Crude	Financial	      120 	      5,755,000 	        37 	      1,695,000 	       157 	      7,450,000 	Barrel
USA	Crude	Financial Option	        -   	                   -   	          3 	         150,000 	           3 	         150,000 	Barrel
USA	Crude	Physical	          6 	         510,000 	        -   	                   -   	           6 	         510,000 	Barrel
USA	Gas Pipeline Capacity	Physical	          1 	           10,000 	        -   	                   -   	           1 	           10,000 	MMBtu
USA	LPG	Financial	          4 	           95,000 	        -   	                   -   	           4 	           95,000 	Gallon
USA	Natural Gas	Financial	      864 	  351,084,550 	      483 	  183,543,479 	    1,347 	  534,628,029 	MMBTU
USA	Natural Gas	Financial Option	        43 	    39,700,000 	          1 	         500,000 	         44 	    40,200,000 	MMBTU
USA	Natural Gas	Physical	   1,742 	    21,201,369 	        36 	      2,322,871 	    1,778 	    23,524,240 	MMBTU
USA	Oil Products	Financial	        27 	         683,096 	          6 	             2,024 	         33 	         685,120 	Barrel
USA	Power	Financial	        53 	         655,752 	        18 	         149,948 	         71 	         805,700 	MWh
USA	Power	Physical	      545 	      7,740,755 	        57 	         980,054 	       602 	      8,720,808 	MWh
USA	Rate and Currency	Financial	        -   	                   -   	          3 	      9,000,000 	           3 	      9,000,000 	FX USD
		 Total 	   3,805 		      649 		    4,454


Sara and Marie,
CSFB Europe requires information to open an account.  We have an account with CSFB Corporation - NY. Would you please review their requirements?  Do we have a problem with any of them?

Please do not hesitate to call if questions.  I will get Robert Daborn's telephone number.
Thanks,
Sheila

-----Original Message-----
From: Hopley, Kimberly
Sent: Wednesday, September 19, 2001 6:04 AM
To: Glover, Sheila
Cc: Brogan, Theresa T.
Subject: FW: ECT Invesmtents Inc

SG,

I called CSFB (Robert Daborn CSFB Compliance) yesterday because they issued yet another confirm in the name of ECT Investments PLC and not ECT Inv Inc. (We thought this matter had been resolved on their side but apparently not).

Below I have attached an email that I received from Robert.  The email contains a word document that requires an authorized Enron person's signature.

Please let me know if I can do anything from this side to resolve this matter.

Many thanks
Kimberly

-----Original Message-----
From: Daborn, Robert [mailto:robert.daborn@csfb.com]
Sent: Tuesday, September 18, 2001 7:18 PM
To: Hopley, Kimberly
Subject: RE: ECT Invesmtents Inc

Kimberly,

Further to our conversation of earlier today it would appear that trades
have been incorrectly allocated to an existing Enron account. This existing
account has been opened with CSFB for several years and it may well be the
case that it is the correct entity for certain transactions between our two
corporations.

However, I note that for transactions executed by yourself the correct
booking entity should be ETC Investments Inc (ETC). Whilst ETC is an
existing client of CSFB Corporation - NY it is not currently set up as a
client of CSFB Equities / CSFB Europe Ltd.

In order that your account can be set up and trades booked correctly I would
appreciate it if you could provide CSFB with following information:

1) Confirmation that ETC is a wholly / majority owned subsidiary of Enron
Corp. This can be evidenced by providing CSFB with a copy of Enron's Annual
Report / Audited Financial Statement and Accounts or confirmed in writing by
Enron on Enron letterhead

2) Confirmation of the registered address of ETC

3) Completed and signed authorisation document attached below.

The information requested above is required to meet our UK Regulatory &
Legal obligations and is not to my knowledge retained by our New York
office.

Please accept my apologies for any delay you've experienced in resolving
this issue but by providing the information requested we should be in a
position to make the requisite changes.

Kind Regards

Rob Daborn
Legal & Compliance
CREDIT | FIRST
SUISSE | BOSTON

Tel: 44(0) 207 883 8359
Fax: 44(0) 207 888 4883
E Mail: Robert.Daborn@CSFB.com

-----Original Message-----
From: Hopley, Kimberly [mailto:kimberly.hopley@enron.com]
Sent: 18 September 2001 16:54
To: robert.daborn@csfb.com
Subject: ECT Invesmtents Inc

Robert,

As discussed per our telephone conversation earlier today :

Please would you amend your records so that confirms issued to us are in
the name of   ECT Investments Inc and not Enron Investments PLC.

Please confirm

Thanks and regards,

Kimberly Hopley
Financial Trading
Tel : +44(0)20 7783 2644
Fax : +44(0)20 7783 1913
Email : kimberly.hopley@enron.com

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************

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


Democrats Prepare to Duel Bush Over Energy Price Caps in West
The Wall Street Journal, 06/01/01

Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
Los Angeles Times, 06/01/01

Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
The Wall Street Journal, 06/01/01

Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
The Wall Street Journal, 06/01/01

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL
Asia Pulse, 06/01/01

GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001

INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS
Asia Pulse, 06/01/01

Thomas E. White becomes Secretary of the Army
M2 Presswire, 06/01/01

Some light at last!
The Economic Times, 06/01/01

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
Associated Press Newswires, 06/01/01

California Lawmakers Eye Billing Businesses for Edison Rescue
Dow Jones Business News, 05/31/01

Construction of power plant in DeSoto County is underway
Associated Press Newswires, 05/31/01

Politics & Policy
Democrats Prepare to Duel Bush Over Energy Price Caps in West
By John Harwood and Jeanne Cummings
Staff Reporters of The Wall Street Journal

06/01/2001
The Wall Street Journal
A16
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -- If you talk to economists, many will say President Bush is on
solid ground in opposing caps on soaring electricity prices in California and
elsewhere. But if you talk to voters, many will suggest he has political
problems.
And now that Democrats control the U.S. Senate, they are poised to make those
problems a lot worse.
Mr. Bush got a taste of what is coming in his widely touted showdown with
California Gov. Gray Davis in Los Angeles this week. The Republican president
repeated his familiar argument that capping wholesale electricity prices
would do nothing to curb demand or increase the supply of power for
California. But the Democrats' Mr. Davis, fortified by polls showing that 70%
of Californians favor price caps, managed to get equal billing during Mr.
Bush's visit for his argument that they are needed to keep the state from
slipping into recession and threatening the national economy in the process.
Because Sen. Jim Jeffords of Vermont left the Republican Party last week and
changed control of the Senate, Democrats now have a more effective national
platform to press the same arguments -- and to threaten Mr. Bush's political
standing beyond the already hostile turf of California. The incoming chairman
of the Senate Energy and Natural Resources Committee, Democratic Sen. Jeff
Bingaman of New Mexico, says he plans to move soon on legislation capping
prices for California and other Western states, a bill that has attracted
some GOP support as well.
"I think it's clear to anybody that the prices being charged for wholesale
power are excessive," said Sen. Bingaman, in an interview while he was
heading toward California on a fact-finding mission. "I don't believe it's
going to be adequate to get us through this summer, to just continue saying
that eventually supply will come into line with demand and the problems will
be resolved."
Meantime, the incoming chairman of the Permanent Subcommittee on
Investigations, Democratic Sen. Carl Levin of Michigan, plans to investigate
the role of oil companies in higher gas prices. "This is the manipulation of
prices, and we've got to investigate it because our people in Michigan are
absolutely furious," Sen. Levin says. Just as Republicans once used the
machinery of Congress to probe then-President Clinton's problems, Democrats
see ripe opportunities for embarrassing an ex-oilman president with strong
links to Texas energy-producing companies that are profiting from today's
supply squeeze.
During the 2000 presidential campaign, five of the major companies now
supplying power to California -- Duke Energy Corp., Dynegy Inc., Enron Corp.,
Reliant Energy Inc., and Williams Cos. -- gave some $3.6 million to Mr. Bush
and the GOP, more than triple the amount donated to Democrats. Three of those
companies are based in Mr. Bush's home state of Texas, which only adds to the
political tensions.
The Democratic offensive has the GOP worried. Price caps amount to "terrible
policy, but good politics," frets Republican pollster Neil Newhouse. Mr. Bush
now faces "a difficult job" overcoming the Democratic arguments for caps, he
adds, because "control of the Senate has given them a megaphone on issues
that they just didn't have before."
That doesn't necessarily mean Mr. Bush ultimately will suffer grave damage.
As congressional Republicans learned to their chagrin in battles with Mr.
Clinton, the presidential bully pulpit remains the most potent weapon in
American politics for framing policy debates. Even with that advantage,
though, the Clinton administration found that the initial appeal of arguments
on issues such as tobacco regulation and prescription drugs faded under
sustained counterattack by Republicans and affected industries.
And so far, polls are showing that Mr. Davis also is paying a political price
in California for the crisis. Still, Mr. Davis, who faces re-election next
year and may later seek the 2004 Democratic presidential nomination, believes
he can limit the damage by emphasizing his efforts to expand supply and
spotlighting the actions of energy companies in Texas and elsewhere. On CNN's
"Larry King Live" this week, he complained that "money sucked out of this
state" amounts to "a massive transfer of wealth" from Californians to the
industry.
Whatever the political ramifications, they aren't limited to California.
Consumers in Washington, Idaho and Montana that are serviced by the same
electric grid have seen 30% increases in their utility rates. That is why Mr.
Davis, with support from some GOP governors in the West, is asking the
Federal Energy Regulatory Commission to impose short-term wholesale price
caps to help protect electricity consumers from soaring rates until new power
plants approved for construction in California increase supply enough to
bring prices down through market forces. California Democratic Sen. Dianne
Feinstein and Oregon Republican Sen. Gordon Smith are offering legislation to
accomplish that in the committee that Mr. Bingaman now will chair.
As a matter of policy, most economists probably would agree with Mr. Bush's
free-market position on price caps, though that sentiment is hardly
unanimous. As he met with the president this week, Mr. Davis released a
letter from 10 prominent economists backing price caps as a temporary remedy
for a market "not characterized by effective competition." One of the
signatories was Alfred Kahn, architect of airline deregulation under
President Carter.
But Bush economic advisers, heeding the free-market arguments that have held
the high ground in regulatory policy debates since the Reagan era, insist
that such caps would distort the energy market and be difficult to abandon
even when market conditions turn more favorable for consumers. "Price caps do
nothing to reduce demand, and they do nothing to increase supply," Mr. Bush
said in California this week.
Mr. Davis says the Federal Energy Regulatory Commission is obliged under law
to assure "just and reasonable" prices, and he says he will sue the agency to
force it to act despite the dismissal earlier this week of a similar lawsuit
filed by California's Democratic legislative leaders. Whether the governor's
effort succeeds, it could provide another forum in which supporters of price
caps can make their case. In discovery, for instance, California attorneys
may be able to get industry data on how much the wholesalers are paying to
produce electricity and their real costs of delivering it.
Such transactions are drawing attention because of the significantly higher
prices being charged in California compared with other states. This week, for
instance, the price of a million British Thermal Units of natural gas in the
San Juan Basin in New Mexico was $2.80, said one economist for the Senate
Energy Committee. But when that gas arrived at the Southern California
border, she said, the price was $10.20 per million BTUs.
Mr. Bush himself voiced concern about such differentials in his meeting with
Mr. Davis, and ordered the FERC to step up monitoring for price gouging. He
has designated Pat Wood, a recent FERC appointee who headed the Texas Public
Utilities Commission during his governorship, as the administration's lead
liaison to California.
Mr. Wood, in fact, could end up an increasingly important player as the
crisis in California and other Western states plays out this summer. Mr.
Wood, who supported some price caps in Texas, is considered more flexible on
the issue than is FERC's current chairman, free-market champion Curtis
Hebert. During his confirmation hearings, Mr. Wood said it may be too late
for price caps because the commission would need months to study materials
and determine an appropriate market rate.
If the administration continues resisting caps, Democrats vow to score
political points heading into the 2002 congressional elections. "Bush is the
individual who ginned this up into a crisis" by frequently calling attention
to the nation's energy problems, says Jim Jordan, executive director of the
Democratic Senatorial Campaign Committee. "Yet the administration won't
consider any serious short-term action to alleviate the problem for the
public."
--- Energy Problems?

Public views of President Bush and energy problems, nationally and
among Californians:

Nationally
Q: In general, do you approve or disapprove of the way President Bush
is handling his job as president?

Approve 52%
Disapprove 38%

Q: Based on what you have read or heard, do you favor or oppose
President Bush's plan to deal with the country's current energy
problems?

Poor job 49%
Good job 38%

Q: How do you think President Bush is handling energy?

Oppose 42%
Favor 38%
Unsure 20%

In California
Is it a good or bad thing for the federal government to cap energy
prices?

GOOD THING BAD THING NO OPINION

All adults 70% 24% 6%
Registered voters 68 26 6
Democrats 79 17 4
Republicans 57 37 6
Other 63 29 8

Sources: National poll numbers from CNN/Time poll; California numbers
from the Field Poll

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

California; Metro Desk
Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
RICH CONNELL; ROBERT J. LOPEZ
TIMES STAFF WRITERS

06/01/2001
Los Angeles Times
Home Edition
B-1
Copyright 2001 / The Times Mirror Company

California officials are probing a vast private network of electricity
trading floors suspected of being a central culprit in California's spiraling
energy prices.
A special state Senate panel investigating alleged manipulation of the energy
market is zeroing in on hundreds of thousands of secretive transactions each
year that help determine whether California will have the power it needs--and
what it will have to pay to get it. Those activities also are central to a
lawsuit by the San Francisco city attorney, who has accused power companies
of using unfair business practices to reap huge profits from the state's
volatile and vulnerable energy market.
A single electron may be traded nearly a dozen times, often at escalating
prices, before reaching California. By then, the actual cost of producing the
electricity may have no relation to its price.
Unlike other commodity and stock exchanges, the frenzied daily activity on
the energy trading floors escape any independent oversight, which critics
contend makes the operations ripe for collusion and price-fixing.
"They're playing the California power game," said attorney Michael Aguirre, a
former federal prosecutor now suing power companies on behalf of Lt. Gov.
Cruz Bustamante. "The trading is the epicenter of the whole enchilada. They
trade and inflate the value."
Power company representatives say their trading floors operate legally and
ethically. "I don't think there has ever been the slightest shred of evidence
[of] something illicit or wrongdoing," said Gary Ackerman of the Western
Power Trading Forum, an industry trade group.
Ackerman and players in the market say prices are not always ratcheted up
through the trading. Often, they say, traders can match supply and demand to
help stabilize prices through daily transactions and long-term contracts.
Still, Aguirre and others say, these sophisticated trading operations have
outmaneuvered bureaucrats at Cal-ISO and the state Department of Water
Resources, the agencies responsible for buying billions of dollars worth of
power over the past several months.
The sprawling trading floors, scattered across the country, are marvels of
high technology. Amid banks of computers and huge wall screens that track
weather, electricity prices and demand across vast regions, mathematicians,
meteorologists and rows of gung-ho traders try to optimize profits buying and
selling one of the world's most volatile commodities.
"These are trading floors that are well outside any regulatory format," state
Sen. Joseph Dunn (D-Santa Ana) said Thursday. "What impact do these trading
floors have on the situation in California?"
Plant Operations Also Scrutinized
Although trading floors are an important focus of state authorities, the
probes of the power companies include an array of issues. Investigators are
digging into the operations of power plants to determine whether unnecessary
shutdowns have been used to tighten supplies and hike prices. Dunn, a onetime
consumer attorney, is heading the Senate investigation panel that is trying
to unravel these issues and the role of the trading floors, operated by the
nation's largest power marketers: Enron, Mirant, Duke Energy, Dynegy Inc.,
Williams Cos. and Reliant.
The committee is seeking records that could determine whether the power
companies have swapped information on trading tactics to maximize prices.
Among dozens of categories of documents Dunn's committee has requested--and
may ultimately subpoena--are computer records from trading floors, recordings
of communications between traders for different companies and training
manuals for traders.
"We know one product of that trading is it drives up the price. . . . What
are you trading for, other than to drive up the price?" Dunn said in a recent
interview.
His committee, which has yet to uncover any wrongdoing, is battling with the
power companies to obtain information the firms insist is confidential.
San Francisco City Atty. Louise H. Renne also is focusing on trading-floor
activity.
"That is a central concern of ours," said Owen Clements, Renne's chief of
special litigation. Clements suspects power traders may be "churning"
megawatts through repeated sales and boosting prices.
"If everyone passes it around and makes a profit, and the ratepayer and the
state of California are stuck with the bill . . . that certainly looks like
an unfair business practice," he said.
A spokesman for Houston-based Enron, which operates one of the busiest
trading operations, said critics misunderstand the energy market, where
profits are not necessarily tied to high prices.
"We're agnostic about the direction of prices," Mark Palmer said. "We make
money one way or the other." He said the trick is in having a diversified
portfolio--and offering unique risk services--to absorb the changing market.
Palmer said those implying misconduct on the trading floors are "100%
politically motivated. . . . These are folks who want to return California to
[power] regulation."
Still, some industry officials acknowledge that some additional oversight of
trading floors may be needed. Ackerman, of the power trading association,
said his members have asked federal regulators to consider an auditing
program to review trading activities.
"If people don't have confidence in trading floors," Ackerman said, "that's a
problem."
*
Times staff writer Miguel Bustillo contributed to this story.

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

World Stock Markets
Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
By Jesse Pesta
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
C11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Foreign companies are on a shopping spree in India's stock
market, buying up their own affiliates and hoping to take them private.
In recent weeks, companies ranging from Otis Elevator Co. and Carrier Corp.,
both of Farmington, Conn., to Hoganas AB of Sweden, a player in the global
iron-powder business, have made open offers for the shares of their Indian
units, sometimes at prices that suggest they consider themselves a bargain.
Boston chemicals maker Cabot Corp. offered 100 rupees ($2.13) a share for
Cabot India Ltd. at a time when it was trading around 55 rupees.
Royal Philips Holland has offered to buy the 17% of light-bulb maker Punjab
Anand Lamp Industries it doesn't already own, according to Punjab. Otis and
Carrier, which are units of United Technologies Corp., Hartford, Conn., have
offered to buy all shares outstanding of their Indian affiliates, Otis
Elevator Co. (India) Ltd. and Carrier Aircon Ltd. The price for Carrier
shares was a nearly 100% premium to the stock's price prior to the offer.
The buybacks have triggered a surge in the stocks of other companies with a
foreign pedigree. Companies including Rayban Sun Optics India Ltd. (a unit of
Bausch & Lomb Inc., Rochester, N.Y.) and Philips India Ltd. (a unit of Royal
Philips Holland) have seen share prices rise as much as 40% or more since the
mid-May offers for Otis and Carrier, which were two of the early ones in the
current wave.
Both Rayban and Philips India deny open offers are planned. In any case,
Philips already boosted ownership in its Philips India unit to 83% from 51%
late last year.
In contrast to the surging shares of multinationals since mid-May, the Bombay
Sensitive Index has risen only 1.56%. It closed yesterday at 3631.91, down
30.13.
The trend has several drivers. For one thing, Indian stocks remain battered
after a rash of big market scandals earlier this year. Meantime, taking a
company private means it no longer is required to share as much information
about its business either with the market or a local partner. "In tough times
it will safeguard your interest," says Jignesh Shah, strategist at Ask-RJ
Investment Management in Bombay.
But most significantly, India has slowly made it easier in recent years for
foreigners to invest. Indeed, the buyback trend contrasts with the feud
between Dabhol Power Co. and its customer, the Maharashtra State Electricity
Board, over unpaid electricity bills. Dabhol, which is 65%-owned by Houston's
Enron Corp., is India's largest foreign investment and an emblem of the
difficulties foreign companies have encountered through the years. But the
buyback trend "works against the story of negative foreign-investment
environment" in India, one analyst notes.
As a rule, the companies play down the importance of stock price. Hoganas's
buyback for instance reflects the company's global strategy, but reflects as
well on a liberalizing India: Everywhere else in the world Hoganas owns 100%
of its subsidiaries, even Japan and China, says Virendra Sud, managing
director. But India didn't allow full foreign ownership 15 years ago, when
the company came here, he says, or else "we would have done it then." It's
purely coincidental that the buyback comes just as the stock market "has sort
of hit rock bottom," he says.
Otis attributes its buyback partly to India's growing appetite for more
sophisticated elevators, which means transferring advanced designs here.
Technology transfer heightens the need for closer cooperation with the
parent, says Managing Director Ashok Malhotra. But the company's reason for
going public in the first place sheds light on the regulatory cycle playing
out today in India. In the 1970s, India went through a phase of requiring
foreign companies to be part locally owned, so Otis made the public offer
that it is trying to undo today. "You have to work under the rules of the
time," Mr. Malhotra says.
---
Yesterday's Market Activity
Nasdaq's losses overnight pressured markets throughout Asia as Tokyo blue
chips tumbled 1.7% and South Korea's benchmark index fell 2.6%. European
markets rebounded somewhat from the previous day's declines, though volume
was thin. Overall, the Dow Jones World Stock Index rose 0.10%, or 0.20, to
195.33. Excluding the U.S., the index fell 0.68%, or 0.96, to 141.08.
In TOKYO, the Nikkei Stock Average was down 1.7%, or 231.21 points, to
13262.14. Nomura Securities downgraded its ratings on Fujitsu, Toshiba and
NEC, causing a broad slump in technology shares. Fujitsu ended down 2.8% at
1,543 yen, NEC slumped 3.9% to 1,947 yen, and Toshiba fell 3.6% to 675 yen.
In HONG KONG, the Hang Seng Index ended down 1.8%, or 245.72 points, at
13174.41. China Mobile fell 2.8% or 1.1 Hong Kong dollars to close at
HK$37.80. Property concern Cheung Kong dropped 3.4% to HK$85 and Sun Hung Kai
finished down 2.4% at HK$72.75.
In LONDON, the FTSE 100 Index slipped 0.01%, or 0.8 points, to 5796.10.
Services company Rentokil Initial surged 12.9% to 215 pence after it said
sales from continuing businesses were up 7.1% and operating profit was up 9%
year on year. It also said it has bought back 120 million of its own shares
since March. Invensys closed 6% higher at 142 pence after posting results in
line with expectations. Retailer Boots ended 3.5% higher at 597 pence after
posting earnings results in line with expectations.
In PARIS, the CAC 40 Index closed up 0.2%, or 9.92 points, to 5454.19.
Alcatel closed up 2.4% to 29.95 euros following the release Wednesday of
weaker-than-expected results and the demise of merger talks with Lucent
Technologies. J.P. Morgan cut its earnings-per-share forecast for the
communications-equipment supplier. Deutsche Bank also expressed negative
sentiment about the company, saying an industry turnaround is unlikely before
the fourth quarter of 2001. Car maker Renault closed down 1.1% to 55.15
euros. Lehman Brothers cut its 2001 earnings forecast, citing exposure to
falling demand in U.S. and Europe.
--- MSCI Indexes

% FROM
May 30 May 29 12-00

U.S. ........... 1183.7 1201.5 -5.3
Britain ........ 1723.9 1744.4 -6.4
Canada ......... 1030.8 1049.4 -10.9
Japan .......... 828.4 844.2 +2.5
France ......... 1763.4 1794.3 -7.3
Germany ........ 755.2 767.4 -7.7
Hong Kong ...... 6844.0 6920.0 -11.0
Switzerland .... 939.5 946.6 -7.6
Australia ...... 700.3 702.9 +9.4
World Index .... 1120.6 1136.4 -8.2
EAFE MSCI-p .... 1325.6 1342.7 -11.2

As calculated by Morgan Stanley Capital International Perspective,
Geneva. Each index, calculated in local currencies, is based on the
close of 1969 equaling 100.

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

International
Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
By Bhushan Bahree
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
A11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

PARIS -- Exxon Mobil Corp. and the Royal Dutch/Shell Group appear poised to
win coveted leadership roles this weekend in a historic reopening of Saudi
Arabia's energy industry.
People familiar with developments said that barring last-minute upsets,
Exxon, the world's largest publicly owned oil company, will be named operator
of the largest opening being offered by the Saudis, the South Ghawar
natural-gas project that will require investment of $15 billion and is named
after the world's largest oil field, in the country's eastern province. But,
they cautioned, because Shell has been competing hotly for South Ghawar,
nothing can be taken for granted until the Saudis officially name the winners
and sign memorandums of understanding on Sunday.
As of late last night, Shell, the second largest company, was expected to win
the second prize: leadership of the Shaybah gas project, which requires
investment of $5 billion and is named after a recently developed oil field in
the kingdom's remote Empty Quarter, a southeastern desert region. Saudi
Arabia already has named Exxon leader of the third and last gas project
opened to foreign investment, the Red Sea project that requires investment of
as much as $5 billion.
Saudi Arabia's energy industry was nationalized in the 1970s, but over the
past two years has been reopened to foreign investment, prompting a fierce
contest among the world's largest oil companies. The people familiar with
developments cautioned that until the choices have been endorsed by an
11-member ministerial committee headed by Saudi foreign minister Prince Saud
al-Faisal, and given the final nod by Saudi Crown Prince Abdullah, they
couldn't be considered final.
The people said the ministerial committee met late yesterday ahead of a
formal signing ceremony planned for Sunday in Jeddah, the Saudi city on the
Red Sea coast. Such is the importance of getting into Saudi Arabia that the
chief executives of the eight companies chosen to participate in the gas
projects are flying to Jeddah to sign the memorandums, a prelude to
negotiations about fiscal and other terms. Final agreements aren't expected
until year's end at the earliest.
Officials of Exxon, Shell and the Saudi government declined to comment on the
choices made by the kingdom, which has the world's largest crude reserves and
is fifth in the natural-gas reserves after Russia, Iran, Qatar and the United
Arab Emirates. A leadership role -- or operatorship in industry parlance --
brings the opportunity to set the pace of the project and create local
networks that can prove valuable for future projects.
The kingdom still isn't allowing foreign companies into its crude-oil
business, which is run by the state-owned Saudi Aramco, but foreign oil
companies hope they eventually will be allowed into that sector, too. Indeed,
Aramco is expected to participate in the gas projects opened to foreigners,
with voting rights that have yet to be determined. The projects are
wide-ranging and encompass a long chain from exploration and production of
natural gas, to its transportation and use to generate electricity and in
water desalination plants.
Last month, Saudi Arabia named eight foreign companies, from a list of 11, to
take part in three consortiums for these projects. Besides Exxon and Shell,
they are BP PLC, TotalFinaElf SA, Conoco Inc., Phillips Petroleum Corp.,
Occidental Petroleum Corp. and Enron Corp. The three companies that sought
but failed to get a place are Chevron Corp., ENI SpA, and Marathon Oil Canada
Inc.
Industry officials say the competition was some of the fiercest ever. Said a
senior industry executive: "Everybody is looking 10 years down the road, and
the place to be is in Saudi Arabia."

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

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, Jun 1 Asia Pulse - A new package 'acceptable to all' is being
evolved to resolve the seven-month old wrangle between Enron promoted Dabhol
Power Company and the Maharashtra State Electricity Board (MSEB) over the
issue of cost of power and payment of bills, A V Gokak, the federal
government's representative in Maharashtra's negotiation committee said
today.
"Things are moving in the right direction and government is serious to
resolve the crisis," Gokak told PTI after a meeting with the Finance
Minister, Yashwant Sinha, here.
Gokak said none of the parties to the dispute are in favour of closure of the
$3 billion project.
Earlier, the Indian government had asked Central Electricity Authority (CEA)
to explore possibility of selling the DPC power to deficient states. But the
Power Minister, Suresh Prabhu, had ruled out possibility of National Thermal
Power Corporation (NTPC) lifting DPC power.
Prabhu had stated that the government would make all efforts to settle the
matter in consultation with the stake holders.
Asked if any time frame has been set to break the impasse, Gokak said "delay
is in nobody's interest, but there are no readymade solutions."
The negotiating committee, headed by Madhav Godbole, has held two rounds of
negotiations with the last round held earlier this week being termed
"positive" by both DPC and the MSEB.
Gokak is believed to have put forward alternative solutions in resolving the
crisis.
(PTI) MYB 01-06 2030

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

		GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001
By JOHN DIZARD

		The share price of one large electron-pushing company is up nearly 70 per
cent this year, but could be in line for another pop to the upside.
		That may sound like a report from Mary Meeker, the formerly omniscient
internet stock guru, or like your broker's stock-of-the-week pitch.
		Well, neither will be making such a claim at the moment - their legal
departments have them on too tight a leash. And the stock I have in mind is
not a technology stock in the sense of a silicon basher or programmer farm.
It is Edison International, the California electric power holding company,
whose Southern California Edison utility has been very publicly hovering at
the edge of bankruptcy for several months.
		The day after President George W. Bush made his "You're on your own,
California" speech, Edison's share price dropped more than 5 per cent. And
while the year-to-date rise, from Dollars 6.25 to Dollars 10.50 this week,
has been impressive, share-holders have seen a 46 per cent loss year on year.
		So why should anyone be optimistic about the chances for the common
shareholders in the holding company? Essentially because the state
legislators are being terrified into coming up with a bail-out plan - not
exactly the plan of Gray Davis, the governor of California, but one that will
preserve some value for the holding company shareholders and give them a more
predictable future.
		By now every one knows that the California utilities were squeezed by fixed
retail rates and rising wholesale costs. Edison has said it has Dollars 3.5bn
in "undercollected" wholesale power purchase costs. The state of California
(and its taxpayers) stepped in to buy power when the utilities ran out of
borrowing capacity in January. PG&E, the other big investor-owned utility,
filed for Chapter 11 protection back in April. Edison held off from filing,
preferring to try to get a state government bail-out.
		Much is missing from the standard account. For example, consumer groups
believe there is a lot of padding in the "undercollect", and that the holding
company should cough up billions in assets paid for with dividends supplied
by the SCE subsidiary. Many of the California public believe that the
merchant generators such as Duke Energy and Enron should pay back overcharges
rather than get any back bills paid.
		And yet the legislative tide is turning in Edison's favour. Within the next
couple of weeks, I expect the Democrats - who control both the state Assembly
and Senate - to come up with a bail-out plan for Edison that has a good
chance of passing both houses and being signed into law by the governor. The
reason is the the distinction they have begun to make between ratepayers and
taxpayers.
		To a legislator, tax payments, as distinct from utility rates, are things
that run through their hands and go to favoured programmes. Taking over the
payment of electric wholesale costs did not look too scary back in January,
when Governor Davis said it would go on for a few weeks and be easily covered
with the cash on hand. Well, the state has paid out nearly Dollars 8bn and
its cash reserves will be under increasing pressure until a Dollars
12bn-Dollars 13bn bond issue can be floated some time after August 15. A
decline in tax receipts is putting even greater stress on the state
government's resources.
		So the legislators want to get as far out of the power business as they can,
as fast as they can. That means saving Southern California Edison from
Chapter 11.
		The deal being negotiated within the Democratic leadership looks something
like this. The state will make a large loan, call it Dollars 1bn, against the
security of Edison's transmission system, to be repaid either through a sale
of the system to the state or a deduction from the allowed return on the
towers and wires. The holding company will pay out about Dollars 400m to prop
up the subsidiary. The rest of the undercollect will be paid for by a
"dedicated rate component", or charge to ratepayers - mostly commercial,
industrial and large users - that cannot be revoked by the Public Utility
Commission. The generators can get 70 cents on the dollar for their back
bills right away, or they can litigate forever.
		There are a few details that lawyers will quibble over, such as the
constitutionality of retroactively raising rates. And some may ask if it is
not cheaper just to let Edison go into Chapter 11, because even with the plan
it will not be able to take the state's place as a wholesale buyer at any
time soon. But I would bet on its passing anyway. And that would be good news
for Edison International shareholders, since they will have held on to most
of the holding company's assets, and still have an ongoing business in the
subsidiary.
		Don't bet the rent money on it, but it looks closer to me than a comeback in
spending on semiconductors. Maybe the children's college money - if you lose
it, they should work harder anyway.
		Copyright: The Financial Times Limited

		INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001
By ROBIN ALLEN and MATTHEW JONES

		ExxonMobil and Royal Dutch/Shell are the favourites to lead two of Saudi
Arabia's multi-billion dollar upstream gas projects to be opened to foreign
companies, according to industry observers in the Middle East.
		A committee of Saudi ministers responsible for the developments was due to
meet late last night. The companies are expected to learn the size of their
stakes either late today or early tomorrow, an official close to the projects
said.
		Saudi Arabia, which has excluded foreign companies in upstream operations
since 1975, last month announced the selection of eight oil groups to
participate in three gas projects requiring initial investment of around
Dollars 25bn.
		Exxon has already been appointed leader of Core Venture 2, on the Red Sea
coast, which also includes Occidental Petroleum and Enron Corp of the US. The
partners in Core Venture 3, the Shaybah development in the south-eastern
quarter of the kingdom, are Shell, TotalFinaElf of France and Conoco of the
US.
		Analysts and industry experts in Riyadh and Abu Dhabi said Exxon was expected
to be named leader of South Ghawar, also known as Core Venture 1, with a 35
per cent stake. BP and Shell would each be awarded 25 per cent shares while
Phillips would receive 15 per cent.
		Exxon was expected to be given a 70 per cent share of Core Venture 2, with
the remainder split equally between Occidental and Enron. Shell was tipped to
lead Core Venture 3 with 40 per cent of the project, while Total and Conoco
were expected to win 30 per cent each.
		One analyst said there was an outside chance that BP would be awarded
leadership of Core Venture 1 for political reasons.
		A BP official last night said the group had had no indication of the
decision, but added: "Even if we are not selected we will still have a very
significant part in a huge project. The important thing is to be there."
		Additional reporting by Robin Allen in Dubai
		Copyright: The Financial Times Limited

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, June 1 Asia Pulse - International ratings agency Fitch has changed
the Rating Outlook on India's sovereign ratings from Stable to Negative,
citing well-flagged concerns about fiscal policy, privatization and the
deterioration in the foreign investment climate.
Fitch currently rates the foreign and local currency obligations of India at
BB+ and BBB- respectively.
The negative rating outlook reflects the slow progress of the government in
implementing privatization and addressing the weaknesses in public finances.
The fiscal-monetary policy mix in India remains unfavorable, resulting in
relatively high real interest rates and crowding out of private sector
investment.
Until the authorities display a concerted willingness to address fiscal
imbalances, India will remain locked in a stop-go cycle of growth and the
sovereign could slip into a debt trap, Fitch said in a press statement.
The recent corruption scandal, involving the ruling Bhartiya Janata Party
(BJP)-led coalition government, threatens to exacerbate these trends and slow
economic reform.
India's general government fiscal deficit at over 9 per cent of GDP is among
the highest in the realm of rated sovereigns.
Persistently high fiscal deficits have led to a build-up of the general
government's debt burden, estimated to be over 60 per cent of GDP.
In addition, the government has guarantees outstanding amounting to 9 per
cent of GDP.
Fitch reiterates the point that such guarantees, issued to back mainly
infrastructure projects, are contingent liabilities of the government.
This has most recently been borne out in the case of Enron, where the US
power company has invoked a central government guarantee for payment arrears
accumulated by the Maharashtra State Electricity Board.
ASIA PULSE 01-06 1609

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

Thomas E. White becomes Secretary of the Army

06/01/2001
M2 Presswire
Copyright 2001 M2 Communications, Ltd. All Rights Reserved.

Thomas E. White became the 18th secretary of the Army today after being
nominated by President George W. Bush on May 1, 2001, and confirmed by the
Senate on May 24.
White expressed his gratitude to the president and the secretary of Defense
for their confidence and trust in him. During his confirmation hearing before
the Senate Armed Services Committee on May 10, White identified four
objectives he will pursue as secretary of the Army in support of the
president and the secretary of Defense: to invest in people, to assure
readiness, to transform the entire Army and to adopt sound business practices.
The secretary of the Army is the U.S. Army's senior civilian, responsible by
statute for all matters relating to Army manpower, personnel, reserve
affairs, installations, environmental issues, weapons systems and equipment
acquisition, communications and financial management. The secretary leads a
work force of some one million active duty, National Guard and Army Reserve
soldiers and 225,000 civilian employees. The department has an annual budget
of approximately 70 billion dollars.
Before his appointment as secretary of the Army, White was the vice chairman
of Enron Energy Services, the Enron corporation subsidiary responsible for
providing energy outsource solutions to commercial and industrial customers
throughout the United States.
White began his service to the nation in 1967, after graduating from the U.S.
Military Academy at West Point. His distinguished career as a commissioned
Army officer included two tours in Vietnam and service as commander, 1st
Squadron, 11th Armored Cavalry Regiment; commander, 11th Armored Cavalry
Regiment, V Corps; and executive assistant to the chairman, Joint Chiefs of
Staff. He retired from the Army in 1990 with the rank of brigadier general.
For additional information, see the Army web site at
http://www.dtic.mil/armylink or contact Army Public Affairs at (703)
697-7550.
((M2 Communications Ltd disclaims all liability for information provided
within M2 PressWIRE. Data prepared by named party/parties. Further
information on M2 PressWIRE can be obtained at http://www.presswire.net on
the world wide web. Inquiries to info@m2.com)).

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

Some light at last!

06/01/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

NEW Delhis intervention in the tussle between Enron and the Maharashtra
government is a welcome development. The government wants the Central
Electricity Authority to find out whether electricity generated by Dabhol
Power Company can be sold to states which need power badly if it cant be used
by Maharashtra.
This is a good idea India is seriously short of reliable, quality electricity
supply. Maharashtra claims that it doesnt need even the 740 MW now generated
by DPC at going rates. This creates further trouble: the lower Maharashtras
offtake, the higher the unit price of DPC power. Once other power hungry
states start buying up electricity from DPC, the price per kilowatt hour will
fall sharply.
The first step to getting DPC out of the hole that Enron, Maharashtra and
successive Indian governments have dug it into, is to allow the utility to
sell power to anyone who wants to purchase it at going rates. However, asking
central utilities like the fledgling Power Trading Corporation to evacuate
DPC power for sale outside Maharashtra wont solve the hassles of the sector
for all time.
The government should modify electricity laws to allow generating companies
to sell electricity to all users immediately. An ordinance passed by New
Delhi will do the trick power is a concurrent subject, with central
legislation overriding states.
But even if that happens, it is doubtful if there will be too many buyers for
Dabhol power at its present price about Rs 4 per unit with the plant running
at high capacities. If the price is to be brought down further, the deal with
MSEB will have to be renegotiated.
The Godbole Committee says that some financial restructuring, de-dollarising
of debt and equity, and so on can bring prices down by about 30 per cent from
DPCs minimum Rs 4 per unit rate today.
Otherwise, as the GC points out, it will be impossible for the project to be
viable at current tariffs. India desperately needs electricity to grow. For
the power sector to grow, reforms are necessary at every level
renegotiations, yes, but also changes in laws and the rules of the game.

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

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
By MICHAEL LIEDTKE
AP Business Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - State energy regulators say they are close to finishing
probes into whether electricity wholesalers illegally aggravated the state's
power squeeze.
In one year, California's power crisis has raised customer rates by $5.7
billion and dumped a $13 billion bailout bill on taxpayers. State officials
hope to recover the money if they find evidence that out-of-state wholesalers
manipulated the market to illegally driving up prices.
The wholesalers say they are being turned into scapegoats for a 1996
deregulation law sculpted by California lawmakers and the state's two largest
utilities, Pacific Gas and Electric and Southern California Edison.
The utilities have reported a combined $8.2 billion in losses since June
2000.
Two legislative committees are investigating allegations that wholesalers
created artificial supply shortages that drove wholesale electricity prices
as high as $1,900 per megawatt hour. Before June 2000, wholesale prices for
energy sold under similar terms rarely climbed above $150 per megawatt hour.
At least five lawsuits, including one filed by San Francisco City Attorney
Louise Renne, seek damages from wholesalers on behalf of all Californians.
"I don't think these are going to be very hard cases to make," said Owen
Clements, chief special litigator for San Francisco. "Even if they didn't
break the letter of the law, they clearly have violated the spirit of the
law."
Attorney General Bill Lockyer is offering multimillion-dollar rewards to
power plant workers and energy traders who provide the state with inside
information about wholesaler's decisions.
"Everyone feels like they're being ripped off. There's a lot of emotional
belief that unfair things have been done, but we're still working through the
case," said Lockyer, a Democrat who voted for the deregulation law when he
served in the state Senate.
The state utilities commission is inspecting power plant documents that may
show whether some facilities shut down unnecessarily to diminish supply. The
commission and Lockyer are investigating whether the plants then increased
production to reap big profits.
Power wholesalers maintain that the plants, many of which are 30 to 40 years
old, shut down for legitimate equipment repairs and maintenance.
"No one in our industry cuts back on production so a competitor can make more
money. It just doesn't happen, at least not on planet Earth," said Gary
Ackerman, executive director of the Western Power Trading Forum, a trade
group.
The Federal Energy Regulatory Commission earlier this year alleged that
Tulsa, Okla.-based Williams profited from the closure of two Southern
California power plants owned by a business partner, Arlington, Va.-based AES
Corp.
Without admitting wrongdoing, Williams refunded $8 million to settle the
charges.
California's investigations are examining the conduct of Williams, as well as
several other prominent power wholesalers, including Houston-based Enron
Corp., Dynegy Inc., and Reliant Energy, Charlotte, N.C.-based Duke Energy and
Atlanta-based Mirant Corp.
Cohen said the utilities commission could file a civil lawsuit against the
wholesalers by the end of June. Lockyer expects to wrap up an investigation
in late July at the earliest.
---
On The Net:
California Public Utilities Commission: http://www.cpuc.ca.gov
California Attorney General: http://www.caag.state.ca.us
http://www.enron.com
http://www.reliant.com
http://www.dynegy.com
http://www.duke-energy.com
http://www.williams.com
http://www.mirant.com

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

California Lawmakers Eye Billing Businesses for Edison Rescue
By Jason Leopold

05/31/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Dow Jones Newswires
LOS ANGELES -- California lawmakers are mulling yet another set of ideas for
rescuing embattled Southern California Edison, and this time businesses would
be on the hook.
In an attempt to deflect charges of a bailout that have thus far stymied
efforts to restore the utility to solvency, legislators are now considering
ways to shift the burden of financing the rescue from residential ratepayers
to the state's largest businesses, aides to key state lawmakers said this
week.
The ideas being worked over by Senate President Pro Tem John Burton, Assembly
Speaker Robert Hertzberg and Assemblyman Fred Keeley have yet to take shape
as formal proposals. But an aide to Burton said some key lawmakers are so
"desperate" to keep Edison International (EIX) utility Southern California
Edison from following PG&E Corp. (PCG) unit Pacific Gas & Electric into
bankruptcy court that they are willing to consider anything that will takse
residential consumers out of the equation.
"The idea is that the large industrial customers are the ones who pushed for
deregulation in the first place, so they should be responsible for bailing
out Edison," the aide said. "We're looking to take the burden off of
residential ratepayers."
The premise of a plan discussed by lawmakers on a conference call Thursday is
to designate Southern California Edison's largest commercial ratepayers as
non-core customers. Those customers -- some 3,600 users of more than 500
kilowatt-hours a month -- would be responsible for financing the cost of
power the utility must purchase or have purchased for it in the wholesale
market. The non-core customers would also help the utility recoup most of its
$5.5 billion in unrecovered power costs through a surcharge on their bills.
Core residential customers would be protected from the wholesale power market
as the primary beneficiaries of the low-cost power the utilities generate
themselves or have locked up in long-term contracts.
Enron Pushing Access to Customers
Separately, Enron Corp. (ENE) has been lobbying lawmakers for several weeks
to win approval to sign power-supply contracts with Southern California
Edison's largest commercial customers, leaving the utility to serve just its
residential customers and small businesses, aides to Gov. Gray Davis, Messrs.
Burton and Hertzberg said.
An Enron executive confirmed that the company sent a four-page proposal to
Mr. Hertzberg proposing that Southern California Edison's large industrial
customers sign so-called direct-access contracts with Enron. Enron also has
recently made a presentation about direct access to some members of the
California Chamber of Commerce.
Under the proposal, heavy users would be required to contract directly with
companies like Enron for their power.
Direct access was a key part of the state's 1996 deregulation plan, but was
scrapped early this year when the state started buying wholesale power in
place of the utilities.
The core/non-core proposal is one of several being discussed by lawmakers as
alternatives to a memorandum of understanding Mr. Davis struck with Edison in
April. The MOU -- which doesn't vary much from an agreement in principle
reached in February -- has been called dead on arrival by some lawmakers, who
have been mulling various alternatives rather than moving the agreement
forward.
State Sen. Debra Bowen, a Redondo Beach Democrat and chairwoman of the Senate
energy committee, said there are so many "Plan B's" floating around the
Legislature that, "We're going to need to hire an apiculturist."
Steve Maviglio, a spokesman for the governor, said the Davis administration
is still dedicated to seeing legislation to enact the memorandum of
understanding move through the Legislature, but said separating the utility's
"core and non-core" customers would be at the forefront of new discussions.
It was too early to say whether the governor would support the plan, he said.
Dominic DiMare, a lobbyist with the California Chamber of Commerce, said the
chamber has told the Davis administration that shifting the burden of the
Southern California Edison bailout to businesses is "a very bad idea" that
could cost the state billions of dollars in economic activity.
"This [plan] would really screw businesses," Mr. DiMare said. "We just got
hit with a 50 to 90% rate increase. We're dangerously close to losing our
businesses to other states."
Write to Jason Leopold at jason.leopold@dowjones.com
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved

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

Construction of power plant in DeSoto County is underway
By TIMOTHY R. BROWN
Associated Press Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

JACKSON, Miss. (AP) - A North Carolina-based independent electric power plant
developer and operator has started construction on a $490 million generating
facility in DeSoto County.
Cogentrix Energy Inc. will build the 800-megawatt power plant in Southaven on
40 acres next to existing TVA and Entergy electric substation facilities. The
plant is the largest economic development project in the history of the north
Mississippi county.
The second largest project is a $150 million power plant currently being
built by Duke Energy.
Both are expected to be operational in 2003.
The National Energy Production Corporation, a subsidiary of the Enron Corp.,
is serving as the engineering and construction contractor for the Congentrix
project.
"It is in construction as we speak," Jeff Freeman, Congentrix vice president
for corporate communications, said Thursday. "NEPCO is mobilized on site and
they are doing earth work. It will probably take them 24 to 27 months to get
the plant in commercial operation."
Freeman said the Charlotte, N.C., company found several reasons why building
a plant in Southaven, a fast-growing city located just south of Memphis,
Tenn., was a good investment.
"The first thing that we look for in any project is a basic need for the
commodity that we produce, which is electricity," Freeman said. "The area
served by the transmission systems, TVA and Entergy, at this location provide
access to areas that need electricity."
The plant will use natural gas as fuel and will include the latest in
environmental and combustion control technologies, Freeman said.
Cogentrix owns all or part of 27 facilities with a capacity to generate about
7,000 megawatts in 14 states.
Southaven Mayor Greg Davis said both plants will generate about $300,000 to
the city, in lieu of taxes, and about $1 million each to the county school
system.
Davis said the plants will not employ many workers so traffic in the area
will not increase. He also pointed to the positive impact of temporary jobs
during construction.
"Then, road and bridge tax that they will be paying is substantial also,"
Davis said. "So from a financial impact we will see a great return in the
investment."
---
On the Net:
Congentrix: http://www.congentrix.com
Duke Energy: http://www.duke-energy.com

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


On Sept 21, SoCalGas filed its BCAP.  They propose a new firm
receipt point trading program based on the open season proposed in the
comprehesive settlement.  The also propose a return to embedded cost rates,
and an elimination of any transmission load risk for the utility.  We should
discuss whether Enron wishes to participate in this case, which will clearly
be a new vehicle for putting gas strategy issues before the commission.  Let
me know if you need a copy of the application.   Mike Day


The attached filing will be made at the CPUC later today related to EES'
claims on the Negative CTC - PX Credits.  The lawyers are continuing to
refine the document.  The discussion about how big the $ is will be deleted.

This does not get at PG&E's claim that the rate freeze had ended and
therefore the PX Credit was not applicable.

Jim

----- Forwarded by James D Steffes/NA/Enron on 01/19/2001 05:14 PM -----

	Harry Kingerski
	01/19/2001 05:13 PM

		 To: James D Steffes/NA/Enron@Enron
		 cc:
		 Subject: Complaint

----- Forwarded by Harry Kingerski/NA/Enron on 01/19/2001 05:12 PM -----

	Robert C Williams@ENRON_DEVELOPMENT
	01/19/2001 04:57 PM

		 To: Harry.Kingerski@enron.com
		 cc:
		 Subject: Complaint

---------------------- Forwarded by Robert C Williams/ENRON_DEVELOPMENT on
01/19/2001 04:58 PM ---------------------------
From: Mike D Smith@EES on 01/19/2001 04:37 PM
To: Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Peggy Mahoney/HOU/EES@EES, Iris Waser/HOU/EES@EES

Subject: Complaint

 Iris--call bob to make sure he got this.
---------------------- Forwarded by Mike D Smith/HOU/EES on 01/19/2001 04:37
PM ---------------------------

JMB <JBennett@GMSSR.com> on 01/19/2001 04:30:15 PM
To: "Mike Smith (E-mail)" <msmith1@enron.com>
cc:
Subject: Complaint

All right here it is --

The best I could come up with in three hours.

 <<X20098.DOC>>

I will wait to hear from  you.

Jeanne

 - X20098.DOC


---------------------- Forwarded by Kay Mann/Corp/Enron on 04/10/2001 08:44
AM ---------------------------

Kay Mann
04/10/2001 08:42 AM
To: David Fairley/ENRON@enronXgate
cc:

Subject: RE: MDEA question

I was referencing your question about power and gas activity obligations when
I raised the issue of putting it in the exhibits (which we have done pursuant
to discussions we had last Friday)  My point on the fuel plan  was that
Reagan deleted it, which was fine with me.  There is language in the contract
addressing Enron's responsibility to buy gas and fuel oil for the facilities.

Kay

From: David Fairley/ENRON@enronXgate on 04/09/2001 07:59 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: RE: MDEA question

Kay -- The fuel activity is so limited in scope that a separate Exhibit is
questionable.  If you don't want fuel in the contract body, then why not make
it a subset of the marketing plan.  Fuel activity is directly linked to power
marketing when running their units. Thanks -- david

 -----Original Message-----
From:  Mann, Kay
Sent: Monday, April 09, 2001 7:20 PM
To: Fairley, David
Subject: Re: MDEA question

Hi David,

Reagan struck all the references to the Fuel Plan.

I think the specific obligations would fit nicely in the scope exhibits, but
we can put the stuff in the body of the contract if that's better for you.
It just seemed that it would easier to work  with in the exhibits.

Kay

From: David Fairley/ENRON@enronXgate on 04/09/2001 04:57 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: MDEA question

Kay -- Do you want detail about our specific power and gas activity
obligations in the body of the contract, or in the Marketing Plan?  Is the
fuel plan included in the Marketing Plan?


----- Forwarded by Jeff Dasovich/NA/Enron on 02/02/2001 08:14 PM -----

	Scott Govenar <sgovenar@govadv.com>
	02/02/2001 01:46 PM

		 To: Mike Day <MDay@GMSSR.com>, Sandra McCubbin <Sandra.McCubbin@enron.com>,
Jeff Dasovich <jdasovic@enron.com>
		 cc:
		 Subject: Rate Freeze

Edison has agreed to support Enron's legislative language regarding the
rate freeze.  I forwarded this information to Joe Lyons in Rod Wright's
office.


?
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You might add the following:

Utility Processing Risk  -  will the utilities try to reject contracts that
are pre-Sept 20 but which are DASR'd afterwards for one reason or another,
or will the utilities try to impose other restrictive requirements to limit
the number of post July 1 contracts they must switch to DA?

Confidentiality Issues _ As part of their policing responsibility on this
issue, the utilities will likely try to insist on seeing all post July 1 DA
contracts, including sensitive provisions, and we will have to resist giving
sensitive commercial information.

Mike Day

-----Original Message-----
From: Dasovich, Jeff [mailto:Jeff.Dasovich@ENRON.com]
Sent: Tuesday, September 25, 2001 2:07 PM
To: mday@gmssr.com; Smith, Mike; Wu, Andrew; Mara, Susan; Higgason,
Kelly
Subject: Risks

Before providing more elaborate descriptions, wanted to try to get a
complete--but stripped-down--list of the key risk areas.  Please add
anything I may have missed, send it back, and I'll take a shot at
fleshing it out.

Thanks,
Jeff
>
> *	Retroactivity (July 1)
> *	No contract renewal
> *	No incremental "DASR'ing", i.e., adding/subtracting load on the
> margin (fast food chains, for example)
> *	Cost allocation risk (e.g., IOU undercollection, bonds, DWR
> undercollection gets distributed to DA customers)
>
>
>

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