Dear Managers,

Now would be an optimal time to assess the progress or lack of progress of your staff members as it relates to Mid-Year PRC.

I encourage you to do the following:

?	Ask you direct reports for their current 2001 goals along with a status report of their progress.
?	Ask your direct reports for a brief self evaluation of their contributions to date for PRC purposes
?	Sit down with your direct reports and talk to them about their areas of improvement that need to addressed and goals that need to be met that will impact the employee at Mid-Year PRC if they are not attained.

This will reduce the chance of miscommunication between you and your employee when you have to deliver difficult messages or where there may be disagreement about current performance levels.      As you already know by now, Frank and I always ask if the issues that are a part of the PRC have been addressed and documented in the recent past with the employee.     Please call us if we can be of any assistance with this process.

Hector G. McLoughlin, PHR
Human Resources
Enron Net Works
Office: 713-853-6703
Cell: 713-854-0839


The new office in Oslo is "going live" today,  Monday, July  24.  Please make
a note of the new address.

Enron Nordic Energy
Hoffsveien 1D
Postboks 637, Sk>yen
0214 Oslo
Norway

All the phone numbers are the same as before.


?????

-----Original Message-----
From: Howard, Kevin A.
Sent: Tuesday, November 06, 2001 9:01 AM
To: Geaccone, Tracy
Subject: RE: Transwestern Fair Value

Banks want to exclude goodwill. How would you explain the difference between the two?
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


Thanks!

 -----Original Message-----
From: 	Sztroin, David
Sent:	Wednesday, March 06, 2002 3:33 PM
To:	Lokey, Teb
Subject:	West Florida Electric Co-op for Sta. 13

Teb, click on below.

http://www.wfeca.net/


I just spoke with Heather Dunton in Risk, and she said they've had problems
valuing index forward deals that settle at the last 5-day NYMEX average. So
to remedy the situation, they're taking a fifth of the volume out of the deal
each day, beginning five days prior to the expiry date. In this case, the
expiry date is 4/25/01, so they began with taking 5 MW out of deal 585480 and
putting it into a fixed price forward deal - 586775. Each day Heather will
take another fifth of the volume in 585480 and put it into 586775, and she'll
average the fixed prices each day to eventually end up with the last 5-day
average. That's the long and short of why this new forward deal - 586775 -
doesn't need to be confirmed. Our position with Deseret stays the same - it's
just split between two deals temporarily.

Please call Heather or me with any questions. She's going to add another
comment in both deals to indicate the changes she'll be making, so it should
be apparent to everyone that 586775 does not need to be confirmed at any
point. When we get to the expiry date, Heather will kill that fixed forward
deal, since the index price will pull into the system and 585480 will value
properly.

Sorry for the winded explanation, but I thought it was better to give you
more than less!

Thanks,
Kate

	From:  Sharen Cason                           04/20/2001 06:31 AM

To: Kate Symes/PDX/ECT@ECT
cc:

Subject: 586775

Can you check and see why we are not confirming this deal with Deseret?  It
is on the not to be confirmed list.

Thanks!


515167

broker has 50 mws on this one too.

thanks


Here is how my proposed 2001 budget will be allocated.  this is indicative
only, as our timesheets ultimately produce, over the course of the actual
year, the actual allocations.  let me know if you have questions or want to
discuss.  mcs
---------------------- Forwarded by Mark Schroeder/LON/ECT on 04/09/2000
18:15 ---------------------------

Greg McMahon
04/09/2000 17:53
To: Mark Schroeder/LON/ECT@ECT
cc:

Subject: Re: Allocations- updated

Mark,

Revised as per your email. 4% taken from Holland Gas and put to Holland
Physical Power, and 5% from Germany Non Project Specific and put to
German Physical Power.

Thanks for the feedback Mark , Ingrid had a word to me.

Greg


66443 is his ext.  thanks.

	Jeff Dasovich
	Sent by: Jeff Dasovich
	04/27/2001 11:30 AM

		 To: Lisa Yoho/NA/Enron@Enron
		 cc:
		 Subject: Re: California Pipeline

on interminable conference calls.  i'll call les.

best,
jeff


Ginger:
I was referred to you by Kay Chapman.  I have not received my W-2 Form.  Are
you able to print out a duplicate ASAP.  I can come and pick it up when it is
ready.  Thanks for your help.
Ben Rogers
3-7998


This is to confirm the Legal Team Review meeting this afternoon with Mark Haedicke at 5:00 p.m. (CST) in EB3321.  Please plan to attend.

Thank you.

Janette Elbertson
on behalf of Mark E. Haedicke
Enron Wholesale Services
Legal Department
Telephone:  (713) 853-7906
Fax:  (713) 646-2600
e-mail:  janette.elbertson@enron.com


eSource Presents Global Access Training

Thomson Financial / Intelligence Data is pleased to offer in-depth training for the Global Access research tool.  Global Access is a web-based, integrated research tool that provides desktop access to a full range of financial and business data for thousands of U.S. and international companies.  Users can access information such as public company filings, private company financials, full-image annual reports, earnings estimates, insider trading analysis and news.

Global Access can be used for competitive analysis, identifying investment opportunities, supporting investment decisions, conducting case studies, and more.

Introduction to Global Access

?	Overview of Global Access
?	Overview of data sources
?	Using Global Access

Attend one of our Introduction to Global Access Clinics:

July 19		1:00 - 2:00 PM 	EB572
July 19		2:15 - 3:15 PM 	EB572

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?	Review of Global Access
?	Advanced reporting using Global Access

Attend our Advanced Global Access Clinic:

     July 19	       3:30 - 4:30 PM 	      EB572

Seats fill up fast! To reserve a seat, please call Stephanie E. Taylor at 5-7928

The Cost is $25.00 Per Person
No Shows will be charged $50.00

* Please bring your Global Access login ID and password. If you don't have one, a guest ID will be provided.

Check the eSource training page at http://esource.enron.com/training.doc for additional training sessions and vendor presentations.


I am missing the following deals per Prebon  for Sean Crandall

1) Enron sells to WWP 25 mw of Mid-C at $112 for 11/14-11/30
2) Enron buys from Edison 25 mw of Mid-C at $112 for 11/14-11/30


Scottish Power reportedly considering 3 bln usd bid for Enron's Portland
AFX News, 04/29/01

UK PRESS:Scottish Power Mulls Bid for Enron's Portland
Dow Jones, 04/29/01

Scottish Power Mulls Bid for Portland General, Observer Says
Bloomberg, 04/29/01

India's MSEB Hopeful Of New Power Pact With Enron Unit
Dow Jones, 04/29/01

India: Enron pull-out could put Indian lenders in a spot
Business Line (The Hindu), 04/29/01

Enron not interested in completion of Dabhol project
Press Trust of India Limited, 04/29/01

African-American museum gathers support, money, ideas
Houston Chronicle, 04/29/01

After several tries, black museum approaches reality in Houston
Associated Press, 04/29/01

COMMUNITY HELPERS SOUTH SCHOOL GIVES $2,500
Portland Oregonian, 04/29/2001

World Bank to vote on $450 mln India power loan
Reuters, 04/28/01

UK: Scottish Power mulls Portland bid - paper
Reuters, 04/28/01

India: Save Dabhol project
Business Line (The Hindu), 04/28/01

India: Systemic changes needed for SEBs, says Prabhu
Business Line (The Hindu), 04/28/01

India: Enron not to affect India ratings: S&P
Business Line (The Hindu), 04/28/01

Maharashtra to appoint Godbole to lead renegotiations with DPC
Press Trust of India Limited, 04/28/01

Power play over Dabhol
Business Standard, 04/28/2001

India waits for a rediscovery
Business Standard, 04/28/01

 Enron gets set to pull the plug on power project
South China Morning Post, 04/28/01

Enron not needed at all, says NGO
The Times of India, 04/28/01

State-wide stir against Enron from March 1
The Times of India, 04/28/01

Enron, India in dispute over future of gas-fired power plant
Associated Press Newswires, 04/28/01

STARS & DOGS A selection of this week's winners and losers compiled by Andrew
Bell
The Globe and Mail, 04/28/01

Talk & Speculation
San Antonio Express-News , 04/28/01

Enron's stock price gets whipped after broadband unit falls short
Associated Press Newswires, 04/28/01

Scottish Power reportedly considering 3 bln usd bid for Enron's Portland

04/29/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

LONDON (AFX) - Scottish Power PLC is considering a move to bolster its U.S.
West Coast operations by bidding for Enron Corp unit Portland General for
around 3 bln usd, reports the Observer, without citing sources.

Enron last week broke off talks with U.S. utility Sierra Pacific over a deal
said to be worth 3.1 bln. This opened the door to Scottish Power, the report
says.

An unnamed City source said Portland, which sells power to 725,000 customers
in and around the Oregon state capital, would be a perfect fit for the
Pacificorp business in the north-west U.S. which Scottish bought in 1999 for
4.7 bln stg. Scottish has consistently said it wants to build up its business
in the U.S.

PacifiCorp has some 1.5 mln residential, commercial and industrial customers
spread in Oregon, California, Washington, Wyoming, Utah and Idaho.

"Portland sits in the middle of PacifiCorp territory in Oregon," the source
said. "There would be added customers and big synergies in infrastructure,
opera tions, and head office functions. It would make sense."

Scottish Power unveils results this week.

UK PRESS:Scottish Power Mulls Bid for Enron's Portland

04/29/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- Utility giant Scottish Power PLC (SPI) is considering a
move to bolster its American West Coast operations by bidding for Enron
Corp's (ENE) Portland General in a deal that could total $3 billion, The
Observer newspaper reports.

-London Bureau; Dow Jones Newswires; 44 (0)20 7842 9279

ScottishPower Mulls Bid for Portland General, Observer Says
2001-04-29 11:30 (New York)

     Glasgow, Scotland, April 29 (Bloomberg) -- ScottishPower Plc,
the U.K.'s No. 2 utility, may bid for Enron Corp.'s Portland
General Electric Co. in a transaction worth as much as $3 billion,
the Observer newspaper said.
     ScottishPower spokesman Gordon Laidlaw declined to comment on
the newspaper's report.
     Portland General has 725,000 customers in Oregon. Its
operations and infrastructure could fit with PacifiCorp, the
biggest utility in the U.S. Northwest, which ScottishPower bought
for $10.7 billion in 1999, the paper said.
     Last week, Enron's planned sale of Portland General to Sierra
Pacific Resources was canceled after both companies agreed that
the California energy crisis had made regulatory approval too
difficult.
     ScottishPower has asked Oregon regulators to allow it to
raise customer prices in the state by 24 percent for three months
from May 2 to cover costs it expects to incur in the period. The
company is losing about $1 million a day because of a failure at a
plant in Utah.

(The Observer, 4-29, business p.1) Click {WNUK <GO>} for a list of
U.K. newspaper Web sites

--Richard Blackden in the London newsroom on +44 (0) 20-7673-2821
or at rblackden@bloomberg.net /ja

Story illustration: {SPW LN <Equity> COMP <GO>} for a graph
comparing ScottishPower shares with major indexes.

SPW LN <Equity> ENE US <Equity> SRP US <Equity>

NI SUM NI UTI NI MNA NI CA NI ELC NI NRG NI CMD NI OR NI RULES NI
UK NI SCOTS NI USWE

-0- (BN ) Apr/29/2001 15:30 GMT

India's MSEB Hopeful Of New Power Pact With Enron Unit
By Himendra Kumar
Of DOW JONES NEWSWIRES

04/29/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW DELHI -(Dow Jones)- India's Maharashtra State Electricity Board is
hopeful of renegotiating its power purchase agreement with the U.S. energy
major Enron Corp.'s (ENE) Indian unit Dabhol Power Co., MSEB Chairman Vinay
Bansal said late Sunday.

The $3 billion, 2,184-megawatt Dabhol project has been mired in financial
disputes after MSEB, its main customer, failed to pay several of its bills.
The project has the largest single foreign investment in India.

The Dabhol project has been in trouble since December when the government of
Maharashtra state, where the Dabhol project is located, said the company
charged exorbitant prices for electricity, and thus demanded a new price
agreement.

Meanwhile, the board of Dabhol Power at its meeting in London April 25, had
authorized DPC's managing director to proceed with a preliminary move toward
terminating its troubled joint venture power project in western India.

"We are at a point of renegotiating the power purchase agreement with Dabhol
Power Co. A committee has been constituted with the government of India
participation. I am hopeful of a positive outcome," Bansal told Dow Jones
Newswires in a telephone interview.

He said he hadn't heard anything from DPC's management on the preliminary
termination notice.
"It's true that the DPC board has authorized the company's managing director
to issue a preliminary termination notice. I am not sure why, when or whether
he will use it," Bansal said.

The preliminary termination notice is the first of three steps that end in
the abandonment of the project, agreed to by investors when the joint venture
was formed.

Bansal said that if the preliminary notice of termination is issued by the
DPC's managing director, there will be a six-month suspension period in which
the two sides will be "negotiating to remedy the defect."
"If the dispute cannot be resolved even after the negotiations, the final
termination takes place. Thereafter, MSEB or a third party may buy the Dabhol
unit. The compensation price will be decided by the arbitrator whose decision
will be based on which of the two parties has defaulted," Bansal said.

Enron India spokesman Jimmy Mogal refused to comment on the DPC board's
decision when reached by Dow Jones Newswires, saying it was an internal
company matter.

Indian lenders, present at a meeting with foreign financial institutions in
London on April 23 have said they favor re-negotiation of the DPC-MSEB power
purchase agreement.

Under a 1996 counter-guarantee agreement, the federal government is obliged
to pay Enron when MSEB defaults.

Enron invoked that guarantee in February - marking the first time in Indian
history that a company has invoked such a federal guarantee - when the state
utility said it couldn't afford to pay Dabhol.

But before the federal government stepped in, the state government paid $17
million in outstanding bills. Since then, the state power utility has
confirmed that all pending bills have been paid.

However, a dispute over payment of $48 million for December and January bills
is pending. For its part, MSEB says it wants the power bills to be offset
against a 4 billion rupee ($1=INR46.8575) fine it levied on Dabhol for what
it said was the non-supply of power for intermittent periods between October
2000 and the end of January.

Several political parties had earlier demanded the project be scrapped, since
the costs had increased to INR7 from INR1.8 per unit agreed to six years ago
for electricity generated by the 740-megawatt naphtha plant.

Enron has maintained that work will be completed by year's end on the 1,444
megawatt liquified natural gas plant.

Houston, Texas-based Enron has a 65% stake in Dabhol Power, and is the
project's largest shareholder. Other shareholders include the MSEB with 15%
and General Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each.
-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9427;
himendra.kumar@dowjones.com

India: Enron pull-out could put Indian lenders in a spot

04/29/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire
MUMBAI, April 28. DABHOL Power Company's (DPC) overseas lenders have a
guarantee cover of about Rs 6,000 crore from the IDBI-led consortium of
Indian lenders.

If the Enron-sponsored project is terminated, the Indian lenders will have to
incur the additional burden over and above the funds they have already sunk
in.

This is in addition to the Union Government's guarantee of about Rs 2,500
crore to overseas lenders. Sources said according to the agreements between
the overseas lenders, the Indian financiers and the Government, the "total
pay-out in the event of termination would not be less than the entire foreign
debt". Of the total debt of close to $2.2 billion, about 70 per cent has been
already disbursed by lenders of which 40 per cent has been lent by overseas
entities.

If the "blame" of termination finally comes to rest on any Indian entity, the
penalty payable to Enron would amount to about Rs 30,000 crore. Irrespective
of the payments to be made to Enron - promised returns on premature
termination - the foreign lenders are secured by the word of domestic
financial institutions and not just the Central and State Governments.

Sources said this is one of the major reasons Indian lenders are opposed to
premature termination of the project, apart from their loans being
"unsecured". At the DPC board meeting in London, IDBI had voted against the
resolution to initiate termination.

The sources said Enron wants to "see some concrete and positive signals" from
the Government within about three weeks that it is "serious" about the
project. A positive signal, according to them, would mean a commitment that
phase II would continue on schedule and the power produced would be lifted
completely. It also wants the "first phase to be up and running at full steam
without hindrance".

However, even if foreign creditors have to be paid off, it is unlikely to be
in a single settlement. Domestic lenders may have to negotiate some kind of
an arrangement to repay the foreign debt in tranches.

Another possibility, albeit a remote one, is that the new entity that takes
over the project will also take over the foreign debt.

Meanwhile, the expert panel to be formed for renegotiation of the power
purchase agreement will include all members of the Godbole Committee, a State
Government official said. It will also include one member each from the Union
Finance Ministry, the Central Electricity Authority, the State Finance
Ministry and the Chairman of the Maharashtra State Electricity Board.

He also said the State Government will appoint the arbitrator before May 9.

- Archana Chaudhary - Dinesh Narayanan

Enron not interested in completion of Dabhol project

04/29/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.
Mumbai, Apr 29 (PTI) The US energy major Enron-promoted Dabhol Power Company
(DPC) has said it is "not interested" in completing the USD three billion
power project in western Indian state of Maharashtra, following non-payment
of dues by the state electricity board (MSEB) and federal government's
refusal to honour the Rs 1.02 billion counter-guarantee.
In DPC's board meeting held in London on April 25, Enron India Managing
Director K Wade Cline and DPC President Neil McGregor made it clear they were
"not very keen for completion of the project as the management felt that both
the state government and the Centre (Indian Government) were undermining the
gravity of the situation", a senior state government official who attended
the meeting told PTI here Sunday.
Cline told the DPC directors that since the state government had "not shown"
any serious interest in dissolving the imbroglio, DPC and its international
lenders were "not in favour of continuing the project".
When contacted DPC spokesperson refused to comment.
The fate of DPC's 2,184 MW project, which is 92 per cent complete, hangs in
balance, since the Indian financial institutions (FIs) led by IDBI have
stopped funding the debt portion of the project, with around 70 per cent of
the USD 1.8 billion worth total disbursement already pumped in.
"Naturally, we have stopped disbursement as we think that it is indeed a
loss-making proposition, as of now. If MSEB begins paying, we would go ahead
with our funding as well", an IDBI official said.
According to the IDBI official, this very stand adopted by Indian lenders has
upset the DPC management and Enron top bosses in Houston as well.
In the meeting, Cline had informed that DPC's foreign lenders had put up a
condition before the company, that they would cough up the required USD 250
million, "only if Indian FIs fulfill their debt component", the official
added.
Other than the issuance of termination notice to MSEB, another issue that
rocked the heated meeting was Godbole review committee's strong stand on
separating the USD 800 million Liquified Natural Gas terminal from Dabhol
project.
"On what basis has Godbole committee asked for renegotiation of the LNG
facility? ...do they have any international expertise in purchase of this
particular fuel?", Cline had questioned the MSEB representatives in London.
He asked whether the high-powered panel had "ever consulted any expert before
commenting on "take or pay" clause of the LNG contract which is mandatory
feature worldwide".
In its recommendations made public two weeks ago, the Godbole panel had
recommended renegotiation of the five million tonnes LNG terminal facility
and DPC's shipping agreements with Oman LNG and ADGAS.
"The ministry for Petroleum and Natural Gas should examine the feasibility of
integrating Dabhol facility within the broad plans of LNG imports into India
and also necessary pipeline investments in this regard", the panel
recommended.
While the 740 MW Phase-I is already operational, the 1,444 MW Phase-II is
scheduled for commissioning in January 2002.
(THROUGH ASIA PULSE) 29-04 2001

 A
African-American museum gathers support, money, ideas
SALATHEIA BRYANT
Staff

04/29/2001
Houston Chronicle
4 STAR
44
(Copyright 2001)

It's an idea that organizers say goes back more than 10 years. But after a
few false starts, plans for a state-of-the-art African- American museum in
Houston appear closer to becoming a reality.

Since kicking off its planning efforts last year, the museum's board has
raised about $400,000 from such corporate sponsors as Enron, Compaq Computer
Corp. and Chase Bank. Organizers are now looking for land in the Museum
District, meeting with community advisers and turning to local schoolchildren
for name suggestions.

Planners expect to break ground on the museum within 12 to 18 months.

"So far the people are very enthusiastic," said board chairman Gerald Smith.
"This is one of the few larger cities that does not have this type of
representation. What we want to do in Houston is different than what has been
done in other cities."

Smith said the idea for an African-American museum goes back about 15 years,
but died for a lack of broad support. It was later revived under the
administration of Mayor Lee Brown. Fund-raising for the museum is expected to
start in earnest once the land is bought. Plans call for the museum to
highlight 400 years of African-American contributions in history, art,
literature, science and other areas. Organizers say the museum will feature
technology, exhibits and educational programming.

"We're talking the whole concept of African-American experience," Smith said.
"It's a blending of all those things."

Irene Johnson, the project's planning director, said organizers want to
encourage community involvement.  One way to accomplish that, she said, is by
sponsoring the naming contest.  Interested students can submit proposed names
for a chance at winning several prizes. The winning entry will win a Compaq
laptop computer, a printer and other prizes. A winner will be chosen by the
end of May.

"We want the contest to inspire and garner support for the project. The
school children will be our future museum goers, so it's important to capture
their ideas," Johnson said. Marti Mayo, the director of the Contemporary Arts
Museum and president of the Houston Museum District Association, said there
is widespread support and interest in adding the new museum to the 11
institutions already in the district.

"(African-American museums) exist in Los Angeles, New York and Chicago," Mayo
said. "It's late in coming, but at the same time we'll take it whenever it
comes.  "All of us are excited and pleased to potentially welcome this
institution to the district. We all feel there is a great need for this
institution," he said. "None of us feel like we've been able to focus enough
on African-American arts. Everybody would welcome another player."

After several tries, black museum approaches reality in Houston

04/29/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
HOUSTON (AP) - Proponents of a museum spotlighting black culture and history
say they expect to break ground within 12 to 18 months on a state-of-the-art
facility in Houston.
Organizers are now looking for land in the Museum District just southwest of
downtown, meeting with community advisers and turning to local schoolchildren
for name suggestions.
It's an idea that organizers say goes back more than 10 years.
Since kicking off its planning efforts last year, the museum's board has
raised about $400,000 from such sponsors as Enron Corp., Compaq Computer
Corp. and Chase Bank.
"So far the people are very enthusiastic," board chairman Gerald Smith said.
"This is one of the few larger cities that does not have this type of
representation. What we want to do in Houston is different than what has been
done in other cities."
The idea for an African-American museum goes back about 15 years, but died
for a lack of broad support, Smith said. It was later revived under the
administration of Mayor Lee Brown.
Fund-raising for the museum is expected to start in earnest once the land is
bought. Plans call for the museum to highlight 400 years of black
contributions in history, art, literature, science and other areas.
Organizers say the museum will feature technology, exhibits and educational
programming.  "We're talking the whole concept of African-American
experience," Smith said. "It's a blending of all those things."
To encourage community involvement, organizers want to let students propose a
name for the museum. The winning entry will win a Compaq laptop computer, a
printer and other prizes. A winner will be chosen by the end of May.
"We want the contest to inspire and garner support for the project. The
schoolchildren will be our future museum goers, so it's important to capture
their ideas," project planning director Irene Johnson said.
Marti Mayo, the director of the Contemporary Arts Museum and president of the
Houston Museum District Association, said there is widespread support and
interest in adding the new museum to the 11 institutions already in the
district.
"All of us are excited and pleased to potentially welcome this institution to
the district. We all feel there is a great need for this institution," Mayo
said. "None of us feel like we've been able to focus enough on
African-American arts. Everybody would welcome another player."

LOCAL STORIES
COMMUNITY HELPERS SOUTH SCHOOL GIVES $2,500
Gregg R.S. Blesch - The Oregonian

04/29/2001
Portland Oregonian
SUNRISE
C05
(Copyright (c) The Oregonian 2001)
The South Salem High School Shine program, with the help of PGE- Enron's
Community 101 program, gave a $2,500 grant to the Easter Seals Children's
Guild, a therapy center in Salem for children with disabilities.

The students who participated in Shine (Saxons Helping Inspire Neighborhood
Excellence) are members of Jon Abel's class in business leadership. They
received $7,500 from PGE-Enron, then, acting as a foundation to disburse the
money, screened applications, listened to presentations and visited possible
recipients.

"Now it's not just someone requesting money," said Abel of the students'
experiences visiting the organizations. "They suddenly become aware that the
world doesn't revolve around them." The Easter Seals Children's Guild will
put the grant toward a new park with a range of surfaces -- such as brick,
concrete and gravel - - for physical and occupational therapy.

The Children's Guild also received a $15,000 grant from the Ready to Learn
fund of the Oregon Community Foundation. The grant will pay for services that
prepare preschool children with disabilities for classes in public schools.
Other donations

* Parrot Creek Child & Family Services will receive $200,000 during the next
three years from the Meyer Memorial Trust for a new development and marketing
program. The grant will pay the salary and costs of a development director
and a half-time support position. It also received $25,000 from the Collins
Foundation to cover moving and set-up costs of consolidating its Clackamas
County satellite offices into one building in Oregon City. The organization,
which has been in Oregon City for 32 years, provides services for at-risk
youth, including residential treatment, mentoring, parent counseling and
Healthy Start.

* The Library Foundation received $5,000 in grants from Tektronix and
Northwest Natural for its summer Web Camp, which will give more than 100
middle school students experience designing Web pages and teach them about
high-tech careers. Three one-week sessions will be offered for free during
the summer.

* Southwest Washington Medical Center received $10,000 from Bank of America
for the Stepping Stones bereavement camp. The three-night summer camp
provides counselors -- professionals and trained volunteers -- who organize
activities to help families with grief. The medical center also received
$1,400 from Columbia Credit Union for the year-round Stepping Stones program,
which provides support for children who have lost loved ones.

-- Gregg R.S. Blesch
If you know of a grant or donation to a nonprofit group or project to
consider noting in Community Helpers, please e-mail the item to
helpers@news.oregonian.com or fax it to 503-227-5306, or send it to Community
Helpers, The Oregonian, 1320 S. W. Broadway, Portland, Ore. 97201.

World Bank to vote on $450 mln India power loan
Reuters, 04-28-01 04:56:44 PM

By Nick Edwards
WASHINGTON, April 28 (Reuters) - The World Bank said on Saturday its board
would vote next week on lending India's Power Grid Corp. $450 million as part
of a $1.3 billion package to finance reform and development in the country's
power sector.

"The total amount of money, with everything included, is about $1.3 billion,"
a bank spokeswoman told Reuters.

The multilateral lender's board meets on Thursday to vote on its contribution
to the package that has three central elements -- two related to efficiency
and distribution and a third to Power Grid's diversification into
telecommunications.

"Part of the World Bank loan, if approved, will go to support the first phase
of laying fiber-optic cables across the (Power Grid) network," the
spokeswoman said.

India threw open its long-distance telecommunications sector last August, and
Power Grid, which has a network of 24,850 miles (40,000 km) of transmission
lines, plans to provide end-to-end bandwidth services.

The loan package is unusual in that it would be granted directly to the
state-owned power distribution utility, rather than to the sovereign
government of India. The government is, however, guarantor to the program.

The bank spokeswoman declined to speculate on whether the board's decision
would be influenced by the crisis brewing in India's power sector with U.S.
energy company Enron Corp.
(ENE.N).

"The bank is engaged at the national level and the state level in power
reforms, broadly," the spokeswoman said, declining to comment specifically on
Enron and the questions that its potential pullout from India raised about
reform in the mainly state-run power sector.

Houston-based Enron took a major step on Wednesday toward bailing out of an
almost complete $2.9 billion power project on the west coast of India in a
bitter dispute over pricing and unpaid bills.

The dispute threatens to undermine already weak foreign private investor
confidence in direct investments in India, which totaled just $2.6 billion
last year -- a fraction of China's $40.8 billion.

The World Bank would make any loan to Power Grid on its usual repayment terms
of 20 years with five years grace with an interest rate at an unspecified
margin above the London Interbank Offered Rate (LIBOR).

The spokeswoman said other lenders in the program included Germany's
Kreditanstalt fuer Wiederaufbau (KfW) with up to $150 million and domestic
Indian institutions.

If passed by the bank's Washington-based board next week, the World Bank loan
agreement would then be signed in India by representatives from the bank in
Delhi, Power Grid and government officials.

The funds would then be available for draw down within 60 days.

UK: Scottish Power mulls Portland bid - paper
04/28/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, April 28 (Reuters) - Scottish Power is considering a move to bolster
its operations on the west coast of the U.S. via a bid for Oregon-based
Portland General in a deal worth up to $3 billion, according to a report in
Sunday's Observer newspaper.

Portland's owner, Enron, last week broke off talks with the U.S. utility
Sierra Pacific on a $3.1 billion sale, opening the door to Scottish Power, it
said.

The article said Portland, which sells power to 725,000 customers around the
state capital of Oregon, would be a perfect fit for the Scottish Power's
Pacificorp unit in the U.S. northwest, which it bought in 1999.

The paper said Scottish Power's intentions would come under scrutiny when the
company reports results next week.

Scottish Power could not be immediately reached for comment.

India: Save Dabhol project
04/28/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire
THE DECISION OF the Dabhol Power Company board - at its meeting in London on
Wednesday - "to authorise the Managing Director to issue a notice of
termination on the contract to sell 740 MW of power in India" is important
for the message it sends to New Delhi, the Maharashtra Government and the
Maharashtra State Electricity Board: Closing down the project would be a real
option at the right time. In the normal course - especially in view of all
that has happened over the past few months (including DPC invoking the
political force majeure clause in the power purchase agreement) - it would
have been no surprise had a final decision on termination been taken at the
board meeting itself. That this has not happened means the project can still
be salvaged and this should now become the focus of all the parties.
But this will not be easy not merely because of the defects in the PPA (from
the Indian standpoint, that is) but also because of the bad blood
unnecessarily created between the two sides. To take but one example: The
MSEB went ahead to clear its March bill to DPC 'under protest' despite an
earlier communication (after the payment of the February bill) from the Enron
India Managing Director, Mr K. Wade Cline, that the company "would not and
will not recognise any payments made as being 'under protest'." The MSEB's
reported response was that it was not taking any notice of this stand because
Mr Wade Cline's "letter had no legal standing," adding, "we will continue to
pay our bills 'under protest'. Let them dispute it." This is no way to engage
in a dispute as it detracts from the main effort to arrive at a mutually
acceptable solution and instead focusses on ephemeral and secondary issues
that have little bearing with the core problem.
Now that the focus will once again shift to India from London, hopefully both
sides will try their best to arrive at a settlement, which actually means
they will have to climb down from their positions. One, the MSEB cannot be
expected to continue paying through its nose for power which it does not even
consume, not merely because this is unfair and unjust but also because the
Board simply does not have the funds.
Further, if it does not make any sense for the MSEB to be part of such an
arrangement (even if it is of its own making), it makes even less sense for
the Maharashtra Government and the Centre to be penalised for a
widely-acknowledged infirmity in the PPA. As for DPC, being the hardnosed
investor it is, it cannot but be aware of the financial untenability of
certain aspects of the PPA. In such a situation, provided the principal
promoters like Enron Corporation want to continue operating in India (of
which one is not very certain), the sensible - perhaps even 'ethical' -
course would be to agree to an amended PPA which would at least be equitable
to the two sides.
The central point in the issue is that the 2,184 MW power project (to be
completed by the year-end) is an asset to the nation's infrastructure,
implying at once that letting it go to seed is no option at all. At the same
time, the DPC promoters must be allowed to make their money - not on the
scale allowed by the existing, one-sided and patently unfair PPA but at a
level which will make the PPA seem a fair document in keeping with the norms
applied to such projects. This means the PPA will have to be renegotiated - a
path already accepted by the Indian side but on which DPC is yet to make its
stand clear. Admittedly, top DPC officials have let it be known that they are
willing to talk (preferably with the Centre). So all may not be lost
vis-a-vis the Dabhol power plant.

India: Systemic changes needed for SEBs, says Prabhu
04/28/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire
NEW DELHI, April 27, THE Union Power Minister, Mr Suresh Prabhu, has informed
the Lok Sabha that "systemic changes" need to be introduced and
institutionalised if the chronically sick State electricity boards (SEBs)
were to be restructured on an enduring basis.

Responding to the concern expressed by the senior Congress leader, Mr
Madhavrao Scindia, during question hour, Mr Prabhu said that the outstanding
dues of the SEBs were a staggering Rs 30,000 crore.

The Government has constituted an expert group to recommend measures for
one-time settlement of outstanding dues of the SEBs towards Central public
sector understandings as also the dues from the Central public sector units
to State power utilities.

The expert group headed by the Planning Commission member, Dr Montek Singh
Ahluwalia, would submit its report before the end of this month.

It would suggest a strategy for capital restructuring of SEBs including the
provision of structural adjustment loans so as to enable them to tide over
the present financial crisis, make them operationally viable and improve
their credit rating.

He agreed with Mr Scindia that the one-time solution for outstanding dues
should be an all-time solution and there should not be any recurrence of this
problem in future. Tracing the genesis of the problems of the SEBs to the
difference in the cost of energy generation and the cost of tariff which
entails a loss of Re 1 per unit, Mr Prabhu said this year the power stations
would be generating 525 billion units.

That is why restructuring of the SEBs on a permanent basis was a must.

The Minister said that the Government was working on a package.

Accordingly, all the consumers should be metered and all the distribution
centres would be treated as profit centres and all the SEBs would have to
give a projection of their performance before the year begins.

When Mr Scindia drew the Minister's attention to a point on the liabilities
of the Enron company which he described as damaging the interest of the
country, the State Government and the power company resulting in "massive
confusion," Mr Prabhu clarified that the agreement was between the State
Government of Maharashtra and the Enron company and the Centre's role is
'limited' in giving counter-guarantee to the guarantee provided by the State
Government.

He said a Standing Committee has been constituted under the Ministries of
Finance, Power and Law and the Petroleum and Natural Gas would also be roped
in to resolve the tangle.

Sops for shipping urged: When Mr Rajaiah Malayala, and Mr P.C. Thomas,
demanded sops for the indigenous shipping industry which has been facing
rough weather, the Minister of Shipping, Mr Arun Jaitley, said that the
Finance Minister has responded to the concern of the shipping industry while
moving the Finance Bill on Wednesday.

As the domestic shipping industry has to improve its competitiveness
globally, efforts would continue to be made with the Department of Revenue to
ensure that the domestic shipping industry does not get bogged down by harsh
tax regime. He conceded that in most countries the shipping industry was
operating on a zero-tax regime.

Fast-track courts: In response to a question by Mr Chandra Bhusan Singh, Mr
Jaitley, who is also the Minister of Law, Justice and Company Affairs, said
that to clear the huge pendency of cases in the various courts in the
country, it is proposed to set up 1,734 courts on a fast-track basis.
- Our Bureau

India: Enron not to affect India ratings: S&P

04/28/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, April 27. INDIA'S sovereign rating would remain unaffected by
aggravation of the Enron dispute, according to international rating agency
Standard & Poor's.

"The ratings are unaffected because the issues with Dabhol Power Company
(DPC) are not about a default on debt. This is a technical distinction but an
important one. The Government incurs many types of liabilities, but we do not
consider all of them to be 'debt' for our purpose," Mr Joydeep Mukherji, Head
of Sovereign Ratings, S&P told Business Line in a mailed reply.

"A counter-guarantee backing the Maharashtra guarantee on the State
Electricity Board's obligation to pay Dabhol is not 'debt' as far as our
ratings go," he said.

With the Enron-sponsored DPC teetering on the brink, many quarters feared
that it would "seriously impair foreign investor sentiment" and international
rating agencies would downgrade the country.

Mr Mukherji agrees that the issue would hit sentiment. "Our rating is a
judgement on the ability to pay 'debt' fully and on time. It is not an
indication of profitability or a view about investment prospects.

The Enron episode will certainly hurt foreign investor sentiment but that is
separate from a debt rating," he said. Enron is about the only foreign
investor left in the country's power sector. Many players such as Cogentrix
and Powergen have already exited their respective ventures.

With that backdrop, Mr Mukherji said, "At a broader level, not about the
rating itself, the episode is very bad for India.

Regardless of the merits of the Dabhol case, it sends a clear and negative
signal to potential foreign investors, going beyond the energy sector. India
has lots of consumers, farmers, and industries willing to pay lots of money
for reliable, guaranteed power supply.

"Many Indian and foreign groups are eager to set up plats to provide that
power and make a profit. It should have been a win-win situation for all
sides. Instead, the only result after a decade of reform is that
load-shedding is as bad as ever and most private investors in power have
packed up and left in bitterness."

However, a view, that projects such as Dabhol power are not viable in a
country with low resources and paying capacity, is gaining currency.

Some analysts ask when utilities in California, where delinquency levels are
close to zero, could not afford the power sold by independent producers such
as Enron, what chances of survival does MSEB have.

- Dinesh Narayanan

Maharashtra to appoint Godbole to lead renegotiations with DPC

04/28/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, Apr 28 (PTI) The government of the western Indian state of
Maharashtra has decided to appoint former bureaucrat Madhav Godbole, who had
recently reviewed Dabhol Power Company's (DPC) Power Purchase Agreement (PPA)
with Maharashtra State Electricity Board (MSEB), to lead the expert team for
renegotiating the PPA following the US energy major's threat to terminate the
agreement.

An official order would be issued on Monday and the experts' committee would
have to consider the recommendations and terms of reference put forth by the
Godbole Review Committee, state government sources said here Saturday.

Sources said no time-frame had been set, but "it will all depend on the other
side (DPC) also participating in resolving the imbroglio".

"Godbole has been chosen to head the renegotiation team as he knows each and
every minute detail of the 2,184 mw project", they said, adding at least two
of the five members of the Godbole panel--Deepak Parekh and E A S
Sharma--would be nominated on the renegotiations committee. Sources said MSEB
chairman Vinay Bansal and the country's National Thermal Power Corporation's
representative would also be included in the panel.

On Friday, state Chief Minister Vilasrao Deshmukh had categorically stated
that he was hopeful of renegotiating the PPA even though Enron was
contemplating serving of notice terminating power supply to the state.

He maintained that termination of PPA between DPC and MSEB would be harmful
to both and that Enron should not take any "harsh decision" in the matter.

(THROUGH ASIA PULSE) 28-04 2001

The BS Weekend
Power play over Dabhol
Pradeep Raje and S Ravindran

04/28/2001
Business Standard
3
Copyright (c) Business Standard
As Vinay Bansal, chairman of the Maharashtra State Electricity Board (MSEB)
walked into a board meeting of the Enron-promoted Dabhol Power Company (DPC)
in London on Wednesday, April 25, he had reason to be happy. The other person
who had reason to smile was the Maharashtra energy secretary V M Lal. Bansal
and Lal are on the DPC board by virtue of MSEB holding a 15 per cent stake in
it.
Why should they be smiling when the chief item on the agenda was to authorise
Enron managing director Wade Cline to serve a preliminary notice terminating
the contract for the Dabhol power project a contract signed in 1992 and
renegotiated in 1995? Well, for the simple reason that, two days earlier, the
clique of 25 lenders to the project had advised Enron not to terminate the
contract. Fortified with the knowledge that Enron couldn't possibly go
against the advice of the lenders, the Bansal-Lal duo assumed the board
agenda was almost infructuous.
Indeed, the lenders had made a strong case against the termination of the
contract, noting that since 92 per cent of the construction was already over,
no purpose would be served by precipitating matters. Even the foreign
lenders, whose loans are covered by the central government counter-guarantee,
were persuaded by the Indian lenders Industrial Development Bank of India
(IDBI), ICICI and the State Bank of India that the bankers' primary business
was to invest money in a project that would return revenue streams over a
period of time, and not simply to recover their principal invested.
Preliminary reports of the lenders' meeting suggest the foreign lenders who
were initially planning to pack their bags and escape the uncertainties of
the project, saw merit in the argument that they might lose a significant
chunk of their India exposure at one go. Fresh investment avenues are not
coming up, and the foreign lenders didn't want to be left out of the India
pie. After all, in the business of global banking, it is only association
with existing projects that begets fresh opportunities.
But despite the lenders' posturing and well-intentioned advice for the Enron
representatives on the DPC board, the latter wasn't one to give up so easily,
especially after venturing this far just to show its displeasure with the way
matters were progressing. DPC has, all along, argued that it has a watertight
contract and that MSEB should honour its obligations under the contract.
It was only after the state government refused to honour its guarantee, and
even the central government seemed to side with the Maharashtra government
rather than honour its own counter-guarantee, that DPC decided to pull the
trumps in its contract. It had to make a point: if MSEB and the local
governments weren't willing to pay up what was due, they would have to pay up
all the penalty clauses for termination of the contract.
So despite the lenders' advice, the board chose to let the sword hang
tantalisingly closer to MSEB's head. It authorised Enron (India) managing
director Wade Cline to serve the notice as and when he deemed fit.
If the Indian side was talking tough all this while to force DPC to accept
its stand on renegotiating a lower tariff, the latter had dangled the threat
of phenomenal penalties if the government strayed off the course charted in
the power purchase agreement.
As the resolution was carried through, the MSEB chairman and energy secretary
realised their bluff was called. The smiles vanished. But they still put up a
brave front. Speaking from London, MSEB officials denied that they had been
checkmated: "This does not mean that they will issue the notice immediately.
Cline has only been authorised to do so," they said.
But they did admit that the situation had not been defused in spite of the
fact that the government had made some conciliatory moves. Just before the
DPC board meet, the Union government had announced on April 23 that a
committee, comprising representatives of the state government, MSEB and
nominees from the Centre, would be set up to renegotiate the power purchase
agreement with DPC to get lower tariffs.
In retrospect, lenders say, Enron seems to have realised that they had no
option but to sit with the state government and thrash out fresh tariffs.
After all, it couldn't afford to let payments being held up for months on
end. Moreover, if MSEB was not drawing enough power from the 740 MW Phase I
of the project, claiming financial inability to service the purchases, what
is the guarantee that it would draw power when the larger 1,444 MW Phase II
comes up? Putting up capacities when the goods don't sell doesn't make sense.
So to salvage the investment, Enron realised that it had little option but to
renegotiate with the state government.
Then it simply became a matter of fortifying positions ahead of the
negotiations. In short, it is trying to convey that it will negotiate but it
better be a deal that satisfies the Houston (Texas)-based company.
The problem as far as the DPC is concerned is the high tariff it charged the
MSEB. These have been as high as Rs 8 per unit at times. Critics of the
project, consisting of politicians, bureaucrats and NGOs, have said that this
is crippling MSEB. The fixed cost alone for the first phase of 740 MW is Rs
95 crore per month.
This means that MSEB has to pay DPC Rs 95 crore whether it
buys power or not. This fixed charge will rise to Rs 500 crore per month when
the second phase is commissioned by December 2001. For the MSEB, which rakes
in around Rs 800 crore per month, the prospect of paying out Rs 500 crore to
one supplier is a nightmare.
What does the immediate future offer? In the next few weeks expect Enron and
the negotiating committee to open direct parleys. There will be hard
bargaining on both sides. By deciding to to send its nominees into the
renegotiating committee, the Government of India has made it clear that it is
taking the issue very seriously.
Earlier, the government was content to treat it as a fight between the state
government, MSEB and DPC. But the fact that unpaid bills were being claimed
from its own account, through the counter-guarantee clauses, seems to have
forced the Centre to be much more careful in what the two sides agree on.
Indeed, the central government has just realised what a mess it had got
itself into. It had sided with MSEB when it decided not to honour the counter
guarantee invoked by DPC for the December, 2000, bill of Rs 102 crore. But
that got the Centre embroiled in an arbitration proceeding over this amount.
And, above all, the central government, being the sovereign, cannot be seen
as being so petty as to wriggle out of its obligations. One false move and
the entire worth of the Centre's word would be laid to waste.
Playing on that, Enron is trying to show that any renegotiations on its part
are in the nature of mercy concessions: since it has a valid signed contract,
no one messes with it.
What this means is that there is no way the state government, MSEB and the
Government of India can shy away from their obligations of paying the DPC
bills. MSEB owes at least Rs 230 crore to DPC for December 2000 and January
2001.
Indeed, DPC made it clear to the Godbole committee that nothing was sacred.
However, it would negotiate at a common forum which consists of all the three
other affected parties MSEB, the Maharashtra government and the Union
government. This concern of DPC has already been met.
The issue of what is to be renegotiated still remains. The Godbole committee
itself had laid out the extent of concessions for each of the parties to the
deal, and had warned that unless the entire package is agreed upon, this
round of negotiations will end like the previous round held in 1995. The
committee said: "The renegotiations will be a complete failure and will only
end up complicating matters further."
These recommendations are well known and documented now. However, for the
record, the Godbole panel has recommended splitting the liquefied natural gas
(LNG) project from the power project. DPC has set up a 5 million tonne LNG
terminal of which only 2.1 million tonne is for the power plant. However the
entire cost of the LNG facility has been loaded on to the power project.
If this recommendation is accepted, it will, first, bring down the cost of
the power project. Then, it will eliminate the need for MSEB to buy about 1.8
million tonne of LNG whether it wants it or not.
This, in turn, will relieve MSEB of an annual burden of $ 403 million. The
excess LNG could be marketed to other players which are mushrooming. The
Reliance and Essar groups as well as Petronet LNG are keen to set up LNG
terminals in western India. It has also said that the equity return for the
DPC tariff be defined in rupees than in dollar terms. This will insulate the
tariff from exchange rate fluctuations.
It further adds that this tariff should be benchmarked to the lowest cost of
power supply from other gas-based plants in the world. The committee has
recommended that the sale of power be allowed to others apart from MSEB. This
is possible only if the tariff is brought down to rates comparable with other
producers.
Central utilities like the National Thermal Power Corporation (NTPC) and the
Power Trading Corporation, besides power companies like BSES and Tata Power,
have already made it clear that they are not keen on buying DPC power at the
current rates. BSES and Tata Power charge their customers only between Rs 2
to Rs 3.50 per unit. The least cost DPC power works out to Rs 4 per unit.
What happens if the renegotiations fail and Enron decides to pull out of the
project? Will it mean the end of foreign direct investment in a sector which
is starved of funds?
"There has been little investment in the power sector over the last decade
due to the poor financial health of the state electricity boards. The health
of these boards has, in fact, deteriorated over the last decade when reforms
have been launched. Unless this basic problem is addressed, there will be
little investment coming into this sector," says R V Shahi, CMD of power
major BSES.
This is a point of view that is echoed in the Godbole committee report which
is otherwise quite critical of DPC. The report warns, "The committee would
like to state strongly that none of the solutions espoused for independent
power projects in general and DPC in particular is tenable without the reform
of MSEB, especially its distribution business." The day MSEB reforms and its
finances are in order, Bansal and Lal will smile more often.

India waits for a rediscovery
Paran Balakrishnan

04/28/2001
Business Standard
13
Copyright (c) Business Standard

Has India slipped off the world map once again? Or, is it about to be
re-discovered, now that times are turning tough and inventories are piling up
in the international marketplace?

Six years ago international bankers and corporations couldn't get enough of
India. In everyone's mind India was the Promised Land with a gigantic
population that was hungering for everything, from electricity to televisions
and Black Label whisky. Foreign investors bought the GDRs of companies like
Garden Vareli and Arvind Mills that were selling extraordinary growth stories.

The world has altered beyond recognition since then. The foreign investors
discovered the harsh truth that a gigantic market by itself doesn't always
add up to huge sales. Many investors burnt their fingers buying GDR issues in
companies that soon became terminally ill.

The enthusiasm for India ebbed gradually but it returns from time to time.
India became the flavour of the season about one year ago when hi-tech fever
was at its frenzied peak. Suddenly, investors decided that India was logging
on to the world and would soon be a good bet once again. Businessmen like
Azim Premji were written about in magazines around the world and it was hard
not to notice India's hi-tech revolution.

Plenty has happened since then and it's a safe bet that anyone who invested
in the Indian stock market one year ago must have lost money if he didn't get
out in double-quick time.

What about the giant investments that everyone predicted would flow into
India? A few years ago, former finance minister P Chidambaram told an
audience in London that foreign investment in India would easily touch $10
billion by 2000. It hasn't even touched half that amount in 2001 and there's
certainly no sign that it is about to pick up sharply.

The fact is that brokers, analysts and the global corporations are a bit
tired of India. This country is a rickety and rumbunctious democracy and it
suffers from a degree of unpredictability that foreigners find baffling. The
stock market had just begun to pick up when the Tehelka tapes threw it off
course once again. The body blow came after bull operator Ketan Parekh was
arrested and accused of manipulating the market. Says one London-based
broker: "You never know what to expect. It is just one thing after another."

On another front the signals are getting mixed by the continuing travails of
Enron and the Maharashtra government. As everyone knows the world's power
position has changed unimaginably and companies like Enron have discovered
that there are electricity shortages in places like California. Suddenly
their enthusiasm for the developing world has waned rapidly.

Nevertheless, foreign money is still pouring into the stock markets. As the
Dow Jones Index and the Nasdaq grind to a halt it is clear that there won't
be super profits in these markets for several years to come. Suddenly, with
the index at 3,500 Mumbai looks a better bet. The market is almost certainly
undervalued and there are definitely bargains to be had.

Back in the mid-'80s growth in the United States had slowed to a halt and the
giant corporations decided that they had to get to Europe and South East Asia
where growth was ticking along at a comfortable pace. Come the '90s and the
action has shifted back to America. It is extremely likely that the wheel is
about to turn once again and this time countries like China and India could
be in sharp focus.

Does it matter what foreign businessmen think about India? The answer is
definitely yes. Foreign money has changed the balance of power on the Bombay
Stock Exchange. And the globe has shrunk with e-mail and swifter jet travel.
And with the WTO policing the world, India must learn to play by the rules of
the game. It must learn to look like a star of the business world and do
business like one.

Enron gets set to pull the plug on power project

04/28/2001
South China Morning Post
4
(c) Copyright 2001 South China Morning Post Publishers. All Rights Reserved.

A dispute over unpaid debts owed to a United States power conglomerate
is casting a cloud over India's foreign investment hopes

After a 10-year battle the country's largest direct foreign investor is ready
to retreat, but the Indians could be the long-term losers. Texas-based Enron
this week took a big step toward abandoning an almost-complete US$2.9 billion
project in India.

The board of Dabhol Power, the Indian subsidiary of Enron, met in London on
Wednesday and authorised the company's managing director to issue a
preliminary notice to terminate the project, which has been billed as the
world's largest natural-gas-fired power plant, The Times of India reported.

"The board has given powers to the management to issue the pre-termination
notice. But the meeting unanimously felt the need of the hour was not to
terminate the project but to initiate a re-negotiation process," Vinay
Bansal, chairman of the Maharashtra State Electricity Board (MSEB), was
quoted as saying by the newspaper.

The notice is the first of three steps that could end in the abandonment of
the US$3 billion project. A six-month reconciliation period would follow any
move by Dabhol to issue the termination notice, Mr Bansal said.

In the past six months, the MSEB has defaulted on bills for electricity
supplied by Dabhol, which operates another plant 160 kilometres south of
Bombay.

Late on Thursday, the MSEB said it had paid Dabhol Power 1.34 billion rupees
(about HK$222.5 million) for electricity it bought in March.

But the payment only partially resolves the total overdue amount of 2.26
billion rupees, which Enron has been unable to collect even after invoking
guarantees issued by the government of Maharashtra and the federal
government.

The state utility also owes Enron payments for power delivered in December
and January.

Neither government is willing to foot the bill for a project which has proved
expensive and hugely unpopular. Yet failing to meet obligations with Enron
threatens to reinforce the image of India as a poor investment climate,
making it harder for the nation to raise the huge sums needed to improve its
infrastructure.

Ironically, Enron was once viewed as playing a lead role in sparking
infrastructure-investment led growth.

A decade ago, the company offered to build a string of power plants after
India rolled out the red carpet to multinationals.

The country needed to add 8,000 megawatts of generating capacity a year to
meet demand that was growing at 8 per cent to 10 per cent annually.

However, years of socialism had left the nation with a network of
money-losing, state-run utilities incapable of paying the estimated 300
billion rupees per year development cost. The government's reluctance to
reform the domestic power sector meant few domestic companies were willing to
build plants.

Enron, and a swarm of other foreign energy companies, offered to fill the
void.  Enron quickly struck a deal in the early 1990s to build a plant in
Maharashtra, a contract renegotiated after a state election brought to power
a new government which claimed the terms were too generous and the result of
alleged kickbacks.

Through the deal, Enron became the largest foreign investor in the country,
accounting for 10 per cent of total direct foreign investment in India since
1992.

The massive project proved hugely unpopular. Its power cost more than that
from state-owned plants, as a result of the rupee's depreciation against the
US dollar and partly due to the rise in the cost of naphtha, the original
fuel source.

At its peak operating rate, the plant's output cost about 4.75 rupees per
kilowatt hour. However, because of the payment dispute with the state power
board, it is running at only 25 per cent of capacity and charges 7.1 rupees
per kilowatt hour, more than three times the rate of other suppliers.

Many Indians believe the Enron contract has bankrupted the state power board,
and threatens to wreck the shaky state budget if the contract is not
renegotiated. "We don't want Enron. They can go and sell their power
elsewhere," state finance minister Jayant Patil said last month.

The 740 MW first phase of the project began operating in May, 1999, and later
this year the second phase is due to come on line, tripling output to 2,184
MW.

That is forcing both sides to toughen their positions, as next year the
amount owed by the state will more than quadruple to more than US$1 billion a
year under the 20-year contract.

The nasty dispute seems certain to cripple efforts to attract other foreign
investment. India attracted just US$2.6 billion in direct foreign investment
last year. China, with a roughly comparable population and an economy twice
the size of India's, attracts 20 times more.

Enron not needed at all, says NGO
Manjiri Damle

04/28/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)
PUNE: Prayas, the consumer watchdog body on electricity, has told the energy
review committee headed by Dr Madhav Godbole that the costly Enron power
project was not needed to meet the energy requirements of the state and that
the very legality and clearances given to the project were questionable.

Prayas was invited by the Godbole committee, which is reviewing the
controversial project and other private power projects that are coming up in
the state, to make a submission on the Enron issue.

The non-governmental organisation (NGO) stated that the energy demand of the
state was 67,500 million units (MU) in fiscal 1998-99 which was expected to
go up to 86,200 MU in fiscal 2003-04. Possible generation from the existing
plants would be 87,060 MU and hence there would be no need to add capacity.
The state may suffer a peak-hour shortfall of 400 to 1,500 MU which could be
mitigated by exploring other options like purchase of captive energy from
industrial units, Prayas added.

The NGO told the committee that the MSEB's own generation could be maximised
through a series of steps. Quality of coal supplied to the MSEB's thermal
plants could be improved by blending imported coal, thereby generating an
additional 670 MW. Utilisation of Uran's idle capacity could yield another
500 MW. Power could also be procured from Tata, BSES, captive industrial
plants and co-generation by sugar factories.

On proposed options regarding Enron, Prayas stated that the sale of Enron
power outside Maharashtra would not be possible because other states would
not afford it. Besides, there would be major legal and contractual problems
as well, the NGO has said.

About other private power projects like Bhadrawati, Reliance and other liquid
fuel-based projects coming up in the state, Prayas advised that the
government and the MSEB should ensure cancellation of all power purchase
agreements (PPAs).

State-wide stir against Enron from March 1
A Staff Reporter

04/28/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

PUNE: Leftist and socialist parties have planned an intense state-wide
agitation from March 1 to demand the scrapping of the Enron project.

Addressing a press conference here on Tuesday, general secretary of the
committee Prof Ajit Abhyankar said over 10,000 demonstrators would group
under the banner of the anti-globalisation action committee and stage
demonstrations at the Enron site in Dabhol. "We will be ready to face any
action from the police," he said, adding that dharnas would also be held in
front of all tehsil offices around the state to coincide with the
demonstrations at Dabhol.

In Pune district, demonstrations have been planned at Khed, Junnar, Haveli,
Purandar, Shirur, Maval, Pimpri-Chinchwad and other tehsil offices, Prof.
Abhyankar said. Over 3,000 activists are expected to participate in the
agitation in the district while a team of 200 Pune activists will leave for
Dabhol on Wednesday.

Prof. Abhyankar expressed happiness over the fact that not just the leftists
parties but also the common people were participating in the anti-Enron
drive. "Although some constituents of the Democratic Front government are
trying their best to save Enron, a strong section in the government is of the
opinion that the Enron agreement is an insult to the state and the Union
government," he said. Without taking names, he hinted that the Nationalist
Congress Party (NCP) and the Bharatiya Janata Party (BJP) may forge an
alliance to keep Enron in the state.

Speaking on the economic aspects, Prof Abhyankar said that once the second
phase of Enron became operational, the MSEB would have to cough up Rs 7,144
crore annually for buying electricity that the state did not need or could
afford.

Enron, India in dispute over future of gas-fired power plant
By RAMOLA TALWAR BADAM
Associated Press Writer

04/28/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

DABHOL, India (AP) - Workers in yellow helmets scramble up steel girders to
fit pipes into place for the world's largest natural gas-fired power plant,
to be completed off India's western coast this year by American energy giant
Enron Corp.

But 200 miles away in Bombay, government officials say they cannot afford the
electricity that Enron is now providing from a naphtha plant at the site, and
they expect the electricity generated by liquefied natural gas will cost even
more.

"Enron is simply unaffordable," said Padamsinh Patil, energy minister for the
state of Maharashtra, which includes Bombay. "The state cannot afford the
power, so we take less power, but still have to pay Enron huge amounts."

India needs power - during the April-to-October 2000 hot season, the nation
had a daily shortfall of nearly 8,000 megawatts of electricity, according to
the Center for Monitoring the Indian Economy.

Enron's naphtha and gas plants at Dabhol will together be able to generate
about 2,200 megawatts, but politicians have trouble with the price. Aging
coal- and gas-fired plants that have been depreciated can charge about two
rupees (4 cents) per kilowatt hour, while Enron's naphtha plant has been
charging 11 to 15 cents.

"Everyone wants to use us to blame for the systemic problem that the state
electricity boards in this country sell power for less than it costs them to
generate or buy power," said K. Wade Cline, president of Enron India.

Despite the protests, Cline believes that the $3 billion project - India's
biggest-ever foreign investment - will go on line at the end of 2001.

An advantage for Enron - and the major complaint against it - is a unique
contract that requires the federal government to pay up in case of default by
Maharashtra. Another grievance is that the Enron deal requires Maharashtra to
pay for electricity even if it doesn't use it.

Enron invoked the federal guarantee in February, when the state utility said
it could not afford to pay Dabhol Power Corp., Houston-based Enron's Indian
subsidiary. But before the national government stepped in, state officials
paid $17 million in overdue bills.

Enron says it is owed $48 million for power delivered in December and
January. The February power bill has already been paid, and Krishna Rao,
member of the Maharashtra State Electricity Board, said Wednesday the March
electricity bill was being paid.

The state bailout drew attention to the Enron deal, with opponents again
raising questions about the cost to be borne for foreign investment and
development. The debate comes as the government in New Delhi tries to reduce
subsidies and sell off state-owned enterprises.

Enron says federal payment guarantees were essential because few foreign
companies were willing to invest when India began opening its economy in the
early 1990s.

"Who wanted to come to India at that time? Very few companies did," said
Cline. "We came along, with some others, and said we're willing to invest
because we think India has a bright future."

Preparing for that future, workers at Dabhol clamber around inside an LNG
tank that could fit three jets stacked one atop another. They weld a
steel-reinforced dome, while others outside drill concrete blocks for the
mile-long jetty where the LNG tanker Laxmi - meaning "wealth" in Hindi - is
scheduled to dock in November.

Enron says LNG is the cleanest and most economical fuel, but Bombay
politicians have their doubts. They point at electricity prices that have
increased fourfold, which Enron attributes to the rise to the jump in oil
prices and a depreciation of the Indian rupee.

Opponents of the project say the government should have invested in its own
power plant instead of tying up with a foreign company.

"We're not against foreign companies, but the Enron project is a sure pill
for India's financial collapse," said Pradyumna Kaul, an anti-Enron activist.
"It will bankrupt the nation. Both sides should agree to a separation and
abort the contract now."

Enron believes a crackdown on power theft and reduction of waste in
transmission and distribution would generate enough money to pay for Dabhol's
electricity.

A state government-appointed committee agreed and this month called for
reform of the state power utility that defaulted on its payments to Enron.
But the five-member panel also insisted on lower tariffs and urged
renegotiating the price agreement.

Enron chief executive Jeffrey Skilling likened the India situation to the
power woes being felt in California.

"The utility offers a fixed rate to their customers and the wholesale costs
of electricity have gone up like they have in the U.S.," he said from Enron
headquarters in Houston. "The distribution company is having a liquidity
squeeze identical to what you have with (Pacific Gas & Electric)." Meanwhile
at Dabhol, managers are moving to the next phase, training workers to man tug
boats to guide that first LNG tanker into port.

"When you first go into these villages with helicopters, bulldozers, they're
nervous, as any of us would be," said Cline. "But we're in a 20-year
partnership here. Dabhol is going to be producing power for Maharashtra for a
long, long time."

End advance for release weekend editions, April 28-29

Report on Business: Net Worth
STARS & DOGS A selection of this week's winners and losers compiled by Andrew
Bell

04/28/2001
The Globe and Mail
Metro
B10
All material copyright Thomson Canada Limited or its licensors. All rights
reserved.

*** *** Blockbuster BBI in Nyse $17.90 U.S., up $1.65 (BBI-NYSE) Top
management in huge pointy hats, doublets and hose aren't scared of
video-on-demand over the Internet. Profits are up and, anyway, movies on the
Web are still a blurry bore. And investors seem pleased to hear a
transmission joint venture with stumbling pipeline thing Enron has been
allowed to suffocate quietly. After all, who wants toxic volatile gas
shooting out of the TV? . *** *** Fidelity Canadian Asset Allocation

Business
Talk & Speculation

04/28/2001
San Antonio Express-News
Metro
02C
(c) Copyright 2001 San Antonio Express-News. All Rights Reserved.

Alamo City execs don't make the list

For the second time in as many weeks, San Antonio has been dissed by a
national ranking.
First it was a Progressive Policy Institute that ranked San Antonio 49th in
technology out of the top 50 metro areas. If that weren't bad enough, a Worth
magazine ranking of the country's 50 best CEOs ignores San Antonio
executives.

Sure, there's Jeffrey Skilling of Enron in second place. Michael Dell of Dell
Computer made the list at No. 21. James Truchard of Austin's National
Instruments was 28th, while Gordon Bethune of Continental Airlines and
William Wise of El Paso Energy scored 33rd and 36th, respectively.
Houston-based Spinnaker Exploration's CEO, Roger Jarvis, was ranked 43rd.
Douglas Rock of Houston's Smith International rounds out the Texas contingent
at No. 46.

No San Antonio representation whatsoever, even though the list was compiled
based on the executives' "foresight, judgment and competitive juice to make
their investors happy," as the magazine said. Don't San Antonio's oil
companies, with their record-breaking earnings, meet that description?

Enron's stock price gets whipped after broadband unit falls short
By BRAD FOSS
AP Business Writer

04/28/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

With natural gas and power prices pumped up, investors have electrified the
stocks of the major energy-trading companies over the past year. For Enron
Corp., however, the surge was short-circuited.

Enron, the nation's top natural gas trader and the leading wholesale
electricity marketer, has been punished on Wall Street for the past seven
months.

Its stock price has fallen more than 30 percent since August 23, in large
part because of investor pessimism toward the company's nascent high-speed
Internet unit.

Just as Enron shares were inflated by speculative enthusiasm for Enron
Broadband Services Inc., they lost considerable gas when investors realized
the unit would not be profitable for a couple of years, said Jeff Skilling,
Enron's president and chief executive.

Meanwhile, the stock prices of Enron competitors Duke Energy Corp., Dynegy
Inc., Reliant Energy Inc. and El Paso Corp., seen double-digit percentage
growth for the year thanks to volatile natural gas and electricity prices, an
essential ingredient for profits in the energy-trading business.

Enron's success as a buyer and seller of power contracts helped shield its
own stock for a while, Skilling said, but the weak Internet unit left them
feeling "a little bit like a duck in a pond. And there are still a lot of
hunters around that pond with a lot of ammo left."

The only way to resuscitate Enron's stock price now, Skilling said, is to
improve earnings.
The Houston-based company has done just that. Its wholesale electricity
trading operations fueled a 25 percent growth in net profit during the three
months ended March 31.

But a recent spate of negative news about the company has kept investors
jittery.

In March, Enron's attempt to sell its Portland General Electric Co. unit to
Reno, Nevada-based Sierra Pacific Resources fell apart and its exclusive
20-year video-on-demand partnership with Blockbuster Inc. was called off.

Enron also has been dogged lately by difficulties collecting money from
customers in India, where a utility has defaulted on nearly $50 million in
payments, and in California, where the company's exposure to the bankrupt
Pacific Gas and Electric Co. is about $580 million.  The deflated valuation
of Enron's stock, however, is most directly linked to its money-losing
broadband unit.

"People ascribed a lot of value to (the unit's) business plan," said Dennis
Higgins, an energy analyst at Morgan Stanley Dean Witter.

Enron Broadband Services delivers speedy Web services over its nationwide
fiber-optic network and sells bandwidth as a commodity to telecommunications
firms such as BellSouth Corp. and Qwest Communications International Inc.

It lost $35 million in the first quarter, but Skilling said the wholly-owned
subsidiary is "gaining traction," though it would not be profitable for
another two or three years.

Financial analysts now either ignore the Internet services division when
discussing Enron's outlook for 2001 and early 2002, or they go out of their
way in research reports to highlight reduced expectations for Enron
Broadband.

Ronald Barone, an energy analyst at UBS Warburg, put a positive spin on the
"collapse in broadband valuation," in a recent research note.

"The downward revision of some highly aggressive price targets well above
$100 were healthy steps in getting this once top performer back on track to
delivering solid shareholder returns," he said. Barone still says Enron's
stock will reach this level, only it will take 18 months instead of 12
months.

The company's first-quarter profit was $425 million as it swapped electricity
and natural gas contracts at a time when low supplies and high demand drove
up energy prices nationwide.  The stocks of Enron's competitors have chugged
along since April 2000, but Enron shares have fallen about 14 percent. The
Williams Companies Inc., which also invested heavily in telecommunications,
has also been a weak performer on Wall Street compared to its rivals,
remaining basically unchanged since a year ago.

Donato Eassey, an energy analyst at Merrill Lynch, said Enron's shares are
due for a turnaround, predicting that "the floodgates are going to open."

At a time when the United States is short on supplies of natural gas and
electricity and demand is on the rise, "few companies are better-suited than
Enron to help folks deal with those high prices," Eassey said.

As for the once-ballyhooed broadband unit, he said, "It'll be icing on the
cake if it comes back."
---
On the Net:
http://www.enron.com
End advance for release weekend editions, April 28-29


Thanks.

 -----Original Message-----
From: 	Booth, Chris
Sent:	Monday, November 19, 2001 5:09 PM
To:	Mann, Kay
Subject:	RE: NorthWestern Call Option

I aint making any payments until we get the official okeydokey.

 -----Original Message-----
From: 	Mann, Kay
Sent:	Monday, November 19, 2001 5:07 PM
To:	Booth, Chris
Subject:	RE: NorthWestern Call Option

We don't want to pay them until we get agreement to the form of the docs.  I don't think much will be required, but I just want to make sure it is coordinated.

Kay

 -----Original Message-----
From: 	Booth, Chris
Sent:	Monday, November 19, 2001 5:06 PM
To:	Mann, Kay
Subject:	RE: NorthWestern Call Option

I'll take all the help and advise that you wish to offer.

 -----Original Message-----
From: 	Mann, Kay
Sent:	Monday, November 19, 2001 5:03 PM
To:	Booth, Chris
Subject:	RE: NorthWestern Call Option

And me?

 -----Original Message-----
From: 	Booth, Chris
Sent:	Monday, November 19, 2001 5:00 PM
To:	Jacoby, Ben
Cc:	Mann, Kay; Vos, Theresa
Subject:	NorthWestern Call Option

Ben,

I will coordinate the $5,112,535 payment to NorthWestern with Theresa.

Chris

 << File: Blue Dog Remaining GE Payments.xls >>


Check it out.


It has been decided that this call will now take place on a bi-weekly basis.
Below are the dates for the upcoming calls, so please mark your calendars
accordingly.

Dates for Upcoming Leadership Calls:

Monday, July 30
Monday, August 13 & 27
Monday, September 10 & 24
Monday, October 8 & 22
Monday, November 5 & 19
Monday, December 3, 17 & 31

Time for Upcoming Leadership Calls: 10:00 AM (CDT)

Number: 1-800-998-2462
               pass code 5316376

Also, as a reminder, these calls are mandatory.  If you are unable to attend
please let both Rick & I know.

Thanks and please call if you have any questions.

Ginger Dernehl
Administrative Coordinator
Global Government Affairs
Phone# 713-853-7751
Fax# 713-646-8160


Attached please find a name change for Western Area Power Administration's
Phoenix Area Office.  This is a branch office for the US Department of
Energy.  There is no documentation for this change.

Shortname changes will be coordinated with ERMS IT tomorrow, 04/20/01.

Records will be inactivated on Tue, May 1.

Please call with any questions or concerns.

Thanks,

Cheryl x33103


ABX2 2 (Corbett) was heard on the Assembly floor today.  The initial vote
was 34-33 so the bill was placed on call.  Instead of lifting the call and
taking another vote, Democratic leadership rescinded the action.  Because
the action was rescinded versus allowing the bill to fail passage and
granting reconsideration, Assembly Member Corbett will have two more
opportunities to hear the bill.

Neither ABX2 65 or SBX2 1 were heard.  AB 81 (Migden) which would change the
calculation for assessing power plants, will be a two year bill.


Thanks!  I agree-lets stay offline on possible deals.  DF

Lee Huber
03/07/2001 10:48 AM
To:	Drew Fossum/ET&S/Enron@ENRON
cc:

Subject:	Due Diligence items

Congrats!!
Also  I don't think it wise to put due diligence activities on Legals weekly bullets but I will put them on my weekly report to you.  Those reports get too wide a distribution.  OK??


Thanks to each of you who help in the review process yesterday.  As many of you know, we found that several of the contracts that we reviewed did reconcile with the Total Exposure (in other words, the agreements were not the right ones).  Eric Moon and Russell Diamond are working with IT, Credit and Risk to access deal specific information in a way that will let us link deal numbers to contract numbers.  Thereafter we can get the right agreements and finish the process.  I will update you later today on the status.  If you have any questions, please ask.
Ed