FYI

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 02/05/2001 11:21 AM -----

	John Fortunato@ENRON
	02/05/2001 11:05 AM

		 To: Sara.Shackleton@enron.com
		 cc: Stephen.Klein@Enron.com
		 Subject: Re: Caraustar Industries, Inc. ("CP") ISDA Master Agreement

Sara:

I quess this is good news. What is the next step. Will your group now draft a
final ISDA? I am in contact with Caraustar on Tuesday, just want my story
correct.

Thanks

John
---------------------- Forwarded by John Fortunato/NA/Enron on 02/05/2001
10:56 AM ---------------------------
From: Paul Radous on 02/05/2001 09:47 AM
To: John Fortunato/NA/Enron@Enron
cc: Sara.Shackleton@Enron.com

Subject: Re: Caraustar Industries, Inc. ("CP") ISDA Master Agreement

I have spoken with Matthew Carnwath.  I have explained the meanings of the
various thresholds.  Sara, it appears that I made an error in calculating the
cross default threshold for the c/p.  Please raise it from $10MM to $15MM in
the executable version.  For your reference, I have enclosed another credit
worksheet incorporating that change.  Otherwise, there appear to be no
remaining points of disagreement involving Credit.

John Fortunato
02/02/2001 11:01 AM
To: Paul.Radous@Enron.com
cc: Sara.Shackleton@Enron.com

Subject: Re: Caraustar Industries, Inc. ("CP") ISDA Master Agreement

Paul:

I will have Mathew Carnwath contact you early next week. Mathew is the
controller at Caruastar's large Rittman Ohio mill and has been directed by
the CFO (Lee Thrash) to work out these details. Mathew is only the messenger,
but is in contact with the Caruastar attorney's on these issues.(FYI, he can
be reached at 330-927-7244 or via e-mail, Mathew.Carnwath@Caruastar.com).

Thanks for the help

John
---------------------- Forwarded by John Fortunato/NA/Enron on 02/02/2001
10:50 AM ---------------------------
From: Sara Shackleton@ECT on 02/02/2001 10:28 AM
To: John Fortunato/NA/Enron@Enron
cc: Stephanie Panus/NA/Enron@Enron

Subject: Re: Caraustar Industries, Inc. ("CP") ISDA Master Agreement

John:  Please have Caraustar call Paul Radous about the cross default issue.
Legal will wait to hear back from Paul after his discussion with your
counterparty.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 02/02/2001 10:25 AM -----

	Paul Radous@ENRON
	02/02/2001 10:09 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Re: Caraustar Industries, Inc. ("CP") ISDA Master Agreement

We are ok with reciprocal website financials.  Please have the counterparty
call me to discuss the cross default threshold.  We use a widely accepted
standard in the industry, which is 2% of total debt, rounded.  In fact, by
this standard, Enron has set it's own threshold too low.

From: Sara Shackleton@ECT on 02/02/2001 09:04 AM
To: Paul Radous/Corp/Enron@ENRON
cc: John Fortunato/NA/Enron@Enron, Stephanie Panus/NA/Enron@Enron

Subject: Caraustar Industries, Inc. ("CP") ISDA Master Agreement

Paul:

John Fortunato has advised me that CP has only three (3) issues with the
draft which we delivered in November, 2000.  The credit issues are:

(1)  CP financials available online - we'll need their website address

(2)  CP Threshold for cross default is too low and wish a "higher number" but
have not given John any indication of what they want

Please let John and Stephanie know the outcome so that we can prepare
executable docs.  Thanks.

P.S.  The legal issue was governing law, Texas or NY.  CP doesn't care but
needs confirmation and possibly explanation.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Subject:  Summer Shoe Pledge

Okay ladies

           Please raise your big toes and repeat after me:

           As a member of the Cute Girl Sisterhood, I pledge to follow
the

           rules when I wear sandals and other open-toe shoes.

           I promise to always wear sandals that fit. My toes will not
hang

           over and touch the ground, nor will my heels spill over the
backs, and the

           sides and tops of my feet will not pudge out between the
straps.

           I vow that I will either go polish-free or vow to keep the
polish

           fresh, intact and chip-free. I will not cheat and just touch
up my big toe.

           I will sand down any mounds of skin before they turn hard and

           yellow.

           I will shave the hairs off my big toe.

           I won't wear pantyhose even if my misinformed girlfriend,
coworker,

           mother, sister tells me the toe seam really will stay under
my toes if I

           tuck it there.

           If a strap breaks, I won't duct-tape, pin, glue or tuck it
back into

           place hoping it will stay put. I will get my shoe fixed or
toss it.

           I will not live in corn denial, rather I will lean on my good
friend

           Dr.Scholls if my feet need him.

           I will resist the urge to buy jelly shoes at Payless for the
low,

           low price of $4.99 even if my feet are small enough to fit
into the kids'

           sizes. This is out of concern for my safety, and the safety
of others. No one

           can walk properly when standing in a pool of sweat and I
would hate to take

           someone down with me as I fall and break my ankle.

           I promise I will take my toe ring off toward the end of the
day if

           my toes swell and begin to look like Vienna sausages.

           Lastly, I vow that I will be brutally honest with my

           girlfriend/sister/coworker when she asks me if her feet are
too ugly

           to wear sandals. Someone has to tell her that her toes are as
long as my

           fingers and no sandal makes creepy feet look good.

           This is my summer shoe pledge to you.

Get your FREE download of MSN Explorer at http://explorer.msn.com


Could be a move to create some negotiating leverage to persuade suppliers to
take a haircut on the utilities undercollection.
----- Forwarded by Jeff Dasovich/NA/Enron on 03/14/2001 10:57 AM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	03/14/2001 10:32 AM

		 To: Katie Kaplan <kaplan@iepa.com>, "'Andy Brown (E-mail)'"
<ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'" <andybrwn@earthlink.net>,
"'Baker Carolyn (E-mail)'" <cabaker@duke-energy.com>, "'Bob Escalante
(E-mail)'" <rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'"
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'"
<curtis_l_kebler@reliantenergy.com>, "'Douglas Kerner (E-mail)'"
<DKK@eslawfirm.com>, "'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan
Smutny-Jones (E-mail)'" <smutny@iepa.com>, "'Jeff Dasovich (E-mail)'"
<Jeff.Dasovich@enron.com>, "'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John
Larrea (E-mail)'" <john.g.larrea@williams.com>, "'John Stout (E-mail)'"
<John_H_Stout@reliantenergy.com>, "'Julee Malinowski-Ball (E-mail)'"
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent
Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Kristin Vellandi
(E-mail)'" <kvellandi@pstrategies.com>, "'Lynn Lednicky (E-mail)'"
<lale@dynegy.com>, "'Marty Wilson (E-mail)'" <mwilson@pstrategies.com>,
"'McNally Ray (E-mail)'" <rmcnally@mcnallytemple.com>, "''Nam Nguyen'
(E-mail)'" <nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'"
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'"
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'"
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>,
"'Rob Lamkin (E-mail)'" <rllamkin@seiworldwide.com>, "'Roger Pelote
(E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell (E-mail)'"
<stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'"
<smara@enron.com>, "'Theo Pahos (E-mail)'" <tpahos@ppallc.com>, "'Tom Ross
(E-mail)'" <tross@mcnallytemple.com>, "Carol H Hudson (E-mail)"
<Chudson@iepa.com>, steven kelly <steven@iepa.com>, "'Anne Kelly (E-mail)'"
<kelly@hnks.com>, "'Chuck Cole (E-mail)'" <ccole@advocation-inc.com>,
"'Delany Hunter (E-mail)'" <dhunter@smithandkempton.com>, "'DJ Smith
(E-mail)'" <djsmith@smithandkempton.com>, "'Hedy Govenar (E-mail)'"
<hgovenar@acom2.com>, <mmoretti@mccabeandcompany.net>, "'Maureen OHaren
(E-mail)'" <Oharen@hmot.com>, "'Mike Monagan (E-mail)'" <mrmonagan@aol.com>,
"'Phil Isenberg (E-mail)'" <isenberg@hmot.com>, "'Robert Ross (E-mail)'"
<robbiz@cwo.com>, "'Ron Tom (E-mail)'" <Rtom@govadv.com>, "'Scott Govenar
(E-mail)'" <sgovenar@govadv.com>, "'Susan Mccabe (E-mail)'"
<sfmccabe@mindspring.com>, <rtemple@mcnallytemple.com>,
<megan.beiser@edelman.com>, <tracy.fairchild@edelman.com>,
<deborah.fiorito@dynegy.com>, <tcwillia@duke-energy.com>
		 cc:
		 Subject: Senate to investigate market power/price manipulation

Senator Burton and Senator Joe Dunn will "Make an announcement regarding
potential manipulation in the wholesale energy market" today at 11am in room
1190 at the state capitol." (See article below for details).

We will keep you posted.

Thanks,
Jean

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

State Senate panel will probe power pricing

March 14, 2001

By KIMBERLY KINDY
The Orange County Register

SACRAMENTO A newly formed Senate committee will investigate whether power
producers manipulated the electricity market and overcharged the state for
energy.

State Sen. Joe Dunn, D-Santa Ana, will chair the committee, which will
immediately request records from the power merchants and next month will
interview employees in an attempt to determine whether allegations of
collusion among energy producers are true.

"What has really caused me to push for this investigation is their behavior
mirrors one another,'' Dunn said. "I don't know how that could occur. They
seem to be clones of each other."

The power producers said the investigation is a waste of time, that they have
done nothing to manipulate the marketplace.

"They can look all they want,'' said Gary Ackerman, executive director of the
Western Power Trading Forum, a trade group representing power merchants.
"They aren't going to find evidence."

Dunn said hearings will be held to review the documents and to conduct the
interviews in public. The investigation is expected to be completed within
two months.

The aim is to identify problems with the structure of the market that may
have allowed generators to manipulate prices, and to determine whether there
was any illegal activity.

In the case of market structure flaws, Dunn said senators would work to make
necessary changes through legislation or by working with federal regulatory
officials. Any proof of illegal activity would be forwarded to state Attorney
General Bill Lockyer, whose office is conducting its own investigation.


The address list on the memo below contains the names of all ENA Energy
Operations employees who worked in the offices in Houston, Denver and Calgary
on January 1st to test our systems.   Does it work for you to copy and paste
this for Cliff's note?  Let me know if it would be better to provide this to
you in a different way.  Thanks.  --Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 01/05/2000 01:21 PM
---------------------------

	Enron North America Corp.

	From:  Sally Beck                           12/30/99 03:42 PM

To: Sally Beck/HOU/ECT@ECT, Kenneth W Walther/HOU/ECT@ECT, Molly
Johnson/HOU/ECT@ECT, Jarrod Cyprow/HOU/ECT@ECT, Jefferson D
Sorenson/HOU/ECT@ECT, Larry Joe Hunter/HOU/ECT@ECT, Elizabeth L
Hernandez/HOU/ECT@ECT, Charles T Muzzy/HOU/ECT@ECT, George Smith/HOU/ECT@ECT,
Jeff D Davis/HOU/ECT@ECT, Lisa Kinsey/HOU/ECT@ECT, Beverly Beaty/HOU/ECT@ECT,
Cindy Vachuska/HOU/ECT@ECT, Clarissa Garcia/HOU/ECT@ECT, Edward
Terry/HOU/ECT@ECT, Jesse Villarreal/HOU/ECT@ECT, Katherine L
Kelly/HOU/ECT@ECT, Sabra L Dinari/HOU/ECT@ECT, Victoria Versen/HOU/ECT@ECT,
Robert Superty/HOU/ECT@ECT, Gary L Payne/HOU/ECT@ECT, Heather
Choate/HOU/ECT@ECT, Richard Pinion/HOU/ECT@ECT, Scotty Gilbert/HOU/ECT@ECT,
Patti Sullivan/HOU/ECT@ECT, Randall L Gay/HOU/ECT@ECT, Stacey J
Brewer/HOU/ECT@ECT, Natalie Baker/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT,
Eric Bass/HOU/ECT@ECT, Jay Reitmeyer/HOU/ECT@ECT, William Kelly/HOU/ECT@ECT,
Pat Clynes/Corp/Enron@ENRON, Robert E Lloyd/HOU/ECT@ECT, Stella L
Morris/HOU/ECT@ECT, Susan D Trevino/HOU/ECT@ECT, Charlene
Richmond/HOU/ECT@ECT, Hollis Hendrickson/HOU/ECT@ECT, Jeff A
Crook/HOU/ECT@ECT, Jeff W Westover/HOU/ECT@ECT, Larry G Cash/HOU/ECT@ECT,
Linda J Ewing/HOU/ECT@ECT, Lisa Csikos/HOU/ECT@ECT, Max Doner/HOU/ECT@ECT,
Melissa K Ratnala/HOU/ECT@ECT, Sabrae Zajac/HOU/ECT@ECT, Sheri
Thomas/HOU/ECT@ECT, Vivien Pham/HOU/ECT@ECT, Wade R Price/HOU/ECT@ECT, Amelia
Alland/HOU/ECT@ECT, Sylvia A Campos/HOU/ECT@ECT, Jason Moore/HOU/ECT@ECT,
Samuel Schott/HOU/ECT@ECT, Donna Consemiu/HOU/ECT@ECT, Marilyn
Colbert/HOU/ECT@ECT, Mary Solmonson/HOU/ECT@ECT, Veronica I
Arriaga/HOU/ECT@ECT, Carolyn Gilley/HOU/ECT@ECT, Mark D Thorne/HOU/ECT@ECT,
Shirlet Williams/HOU/ECT@ECT, Melissa White/HOU/ECT@ECT, Daren J
Farmer/HOU/ECT@ECT, Cassandra Moses/HOU/ECT@ECT, Howard B Camp/HOU/ECT@ECT,
Rita Wynne/HOU/ECT@ECT, Kellie Bilski/HOU/ECT@ECT, Michael Eiben/HOU/ECT@ECT,
Bryce Baxter/HOU/ECT@ECT, Marlo C James/HOU/ECT@ECT, Kim S
Theriot/HOU/ECT@ECT, Rhonda L Denton/HOU/ECT@ECT, Sharen Cason/HOU/ECT@ECT,
John D Postlethwaite/HOU/ECT@ECT, Kristin Albrecht/HOU/ECT@ECT, Stacey W
White/HOU/ECT@ECT, Evelyn Aucoin/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT,
Theresa R Kotrla/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Carrie
Southard/HOU/ECT@ECT, Dale Neuner/HOU/ECT@ECT, Donna Greif/HOU/ECT@ECT, Frank
L Davis/HOU/ECT@ECT, Jennifer deBoisblanc Denny/HOU/ECT@ECT, Lisa
Gillette/HOU/ECT@ECT, Lorraine Becker/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT,
Chris Swenson/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Sheila
Glover/HOU/ECT@ECT, Bennett Kaufman/HOU/ECT@ECT, Dart Arnaez/HOU/ECT@ECT,
Theresa T Brogan/HOU/ECT@ECT, Rebecca Ford/HOU/ECT@ECT, Bob
Klein/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Laurel Adams/HOU/ECT@ECT,
Robert Richard/Corp/Enron@ENRON, Gary Stadler/HOU/ECT@ECT, Michael E
Moscoso/HOU/ECT@ECT, Chris Abel/HOU/ECT@ECT, David Maxwell/HOU/ECT@ECT, John
Jacobsen/HOU/ECT@ECT, Robert Richard/Corp/Enron@ENRON, Scott
Pleus/HOU/ECT@ECT, Cliff Lawrick/CAL/ECT@ECT, Peggy Hedstrom/CAL/ECT@ECT,
Chris Wiebe/CAL/ECT@ECT, Kevin Heal/CAL/ECT@ECT, Kathy Reeves/CAL/ECT@ECT,
Dan Dietrich/CAL/ECT@ECT, Scott Sitter/DEN/ECT@Enron, Theresa
Staab/Corp/Enron@ENRON
cc: Cliff Baxter/HOU/ECT@ECT, Kevin P Hannon/HOU/ECT@ECT, Greg
Whalley/HOU/ECT@ECT, Richard Causey/Corp/Enron@ENRON
Subject: Thanks for January 1, 2000

I wanted to extend my thanks in advance to all of you who will join me in the
office on January 1, 2000.  I appreciate your willingness to devote part of
your holiday weekend to the continuing success story at Enron.

As a company, Enron has spent much time and effort to ensure that business
will continue smoothly as we move into the year 2000.  Ken Walther, in
working with many of you, has done an excellent job of preparing a work plan
for January 1.    Your  work on the first  will be the final step in this
process.  Your efforts that day will allow all ENA employees to return to the
office on January 4th with confidence in our ability to continue business as
usual.

I wish each one of you a happy new year.  I continually feel privileged to
work with this dedicated and talented group of  employees.  I look forward to
all that we will accomplish in 2000.


I have retained Utah counsel.  I'll keep you posted.  I haven't looked at
your other question yet but I will !  Sara


Margie, that time works with my schedule. Let me know when it is finalized.
Thanks,
Joe

-----Original Message-----
From: Moreno, Margie M. [mailto:MMoreno@reliant.com]
Sent: Tuesday, February 05, 2002 10:26 AM
To: Parks, Joe
Subject: Interview Itinerary

Joe:

I have attached a copy of the Interview Itinerary.  Please let me know
is this will work for you!  Thanks.
 <<ParksJH.doc>>
Margie Moreno
Reliant Resources - HR Dept
713-207-8586 ph,713-207-0832 fax,713-421-5329 pg
mmoreno@reliant.com


If you have not responded to me regarding your attendance at the above
referenced meeting, please do so by 12:00pm (noon) tomorrow.

The meeting on December 8, is scheduled to begin at 8:30am and conclude by no
later than 4:00pm (maybe even earlier).  Hope this helps in flight schedules..

gngr
713-853-7751
----- Forwarded by Ginger Dernehl/NA/Enron on 11/27/2000 03:34 PM -----

	Ginger Dernehl
	10/30/2000 12:05 PM

		 To: assad@elektro.com.br, Alberto Levy/SA/Enron@Enron, Aleck
Dadson/TOR/ECT@ECT, Allison Navin/Corp/Enron@ENRON, Amy
Fabian/Corp/Enron@ENRON, Barbara A Hueter/NA/Enron@Enron, Bernadette
Hawkins/Corp/Enron@ENRON, Bill Moore/NA/Enron@Enron,
cristinah@elektro.com.br, Carlos Gustavo Azevedo/SA/Enron@Enron, Carmen
Perez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carolyn Cooney/Corp/Enron@ENRON,
Charles Yeung/HOU/ECT@ECT, Chauncey Hood/NA/Enron@ENRON, Chris
Long/Corp/Enron@ENRON, Christi L Nicolay/HOU/ECT@ECT, Cynthia
Sandherr/Corp/Enron@ENRON, Damon Harvey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Dan Staines/HOU/ECT@ECT, Daniel Allegretti/NA/Enron@Enron, Donald
Lassere/NA/Enron@Enron, Donna Fulton/Corp/Enron@ENRON, Eidy
Catala/TRANSREDES@TRANSREDES, Elizabeth Linnell/NA/Enron@Enron, Frank
Rishe/HOU/EES@EES, Geriann Warner/NA/Enron@Enron, Ginger
Dernehl/NA/Enron@Enron, Gisele S Braz/SA/Enron@Enron, Gloria
Ogenyi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Guillermo Canovas/SA/Enron@Enron,
Harry Kingerski/NA/Enron@Enron, Howard Fromer/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron, Janine Migden/DUB/EES@EES, Javier
Pantoja/TRANSREDES@TRANSREDES, Jean R Dressler/NA/Enron@Enron, Jeff
Brown/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Jeffrey
Keeler/Corp/Enron@ENRON, Joao Paixao/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe
Allen/NA/Enron@Enron, Joe Connor/NA/Enron@Enron, Joe
Hartsoe/Corp/Enron@ENRON, Joe Hillings/Corp/Enron@ENRON, Jose
Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joseph Alamo/NA/Enron@Enron,
Kathleen Sullivan/NA/Enron@ENRON, Kerry Stroup/DUB/EES@EES, Kikumi
Kishigami/NA/Enron@Enron, Kirsten Bellas/NA/Enron@Enron, Lara
Leibman/NA/Enron@Enron, Laurie Knight/NA/Enron@Enron, Leslie
Lawner/NA/Enron@Enron, Lindsay Meade/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Lisa Yoho/HOU/EES@EES, Lora Sullivan/Corp/Enron@ENRON, Luiz
Maurer/SA/Enron@Enron, Lysa Akin/PDX/ECT@ECT, Marchris
Robinson/NA/Enron@Enron, Marcia A Linton/NA/Enron@Enron, Marcie
Milner/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Maureen
McVicker/NA/Enron@Enron, Mona L Petrochko/NA/Enron@Enron, Nancy
Hetrick/NA/Enron@Enron, Patrick Keene/NA/Enron@Enron, Paul
Kaufman/PDX/ECT@ECT, Ray Alvarez/TRANSREDES@TRANSREDES, Ricardo
Charvel/NA/Enron@Enron, Richard Ingersoll/HOU/ECT@ECT, Richard
Shapiro/NA/Enron@Enron, Robert Frank/NA/Enron@Enron, Robert
Hemstock/CAL/ECT@ECT, Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Robin Kittel/NA/Enron@Enron, Ron McNamara/NA/Enron@Enron, Roy
Boston/HOU/EES@EES, Rubena Buerger/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Sandra McCubbin/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Scott
Bolton/Enron Communications@Enron Communications, Sergio
Assad/SA/Enron@Enron, Stephen D Burns/Corp/Enron@ENRON, Steve
Montovano/NA/Enron@Enron, Steve Walton/HOU/ECT@ECT, Steven J
Kean/NA/Enron@Enron, Sue Nord/NA/Enron@Enron, Susan J Mara/NA/Enron@Enron,
Susan M Landwehr/NA/Enron@Enron, Terri Miller/HOU/EES@EES, Thane
Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tom Briggs/NA/Enron@Enron, Tom
Chapman/HOU/ECT@ECT, Tom Delaney/Corp/Enron@ENRON, Tom Hoatson/HOU/EES@EES,
Tracy Cooper/Enron Communications@Enron Communications, Valeria
Lima/SA/Enron@Enron, Vinio Floris/Corp/Enron@Enron, Xi Xi/Enron
Communications@Enron Communications
		 cc: Miyung Buster/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Elizabeth
Linnell/NA/Enron@Enron, Lynnette Barnes/NA/Enron@Enron, Stephanie
McMurray/NA/Enron@Enron, Linda L Lawrence/NA/Enron@Enron, Earlene
O'Connell/NA/Enron@Enron, Margo Reyna/NA/Enron@Enron, Eric
Benson/ET&S/Enron@ENRON, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Gia Maisashvili/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James D
Steffes/NA/Enron@Enron, Marcia A Linton/NA/Enron@Enron, Margaret
Carson/Corp/Enron@ENRON, Joan Stransky/Corp/Enron@ENRON, Rob
Bradley/Corp/Enron@ENRON, Jeffrey Keeler/Corp/Enron@ENRON, Stacey
Bolton/NA/Enron@Enron, Mary Schoen/NA/Enron@Enron
		 Subject: Government Affairs-The Americas Dept. Meeting - December 8, 2000

The next Government Affairs-The Americas meeting will be held in Houston, TX
at the DoubleTree Hotel on Friday, December 8, 2000.  A block of rooms has
been reserved under "Enron Corp - Government Affairs" and each individual is
required to make their own reservation.  The group dinner will be held on
Thursday, December 7 at Ruggles Restaurant, Enron Field at 7:00pm.  Please
let me know of your plans to attend the dinner and meeting by Wednesday,
November 15.

Hotel information below:

DoubleTree Hotel
400 Dallas Street
Houston, TX 77002
713-759-0202  Phone #
713-654-0727  Fax#

Additional information regarding the meeting will follow, but please remember
to make your reservation and call me if you have any questions.

gngr
713-853-7751


All information about the Emission Reduction Credit Program is available electronically from Georgia's EPD-Air Protection Branch internet site located at:

http://www.air.dnr.state.ga.us/bank/

The information on available credits and contacts can be under the menu item "Available Credits."

If you have any additional questions, please contact Terry Johnson at (404)363-7097.

>>> "Taylor, Michael E" <Michael.E.Taylor@ENRON.com> 09/18/01 01:26PM >>>
Lynn,

Can I receive a list of all available credits?

Michael Taylor
Enron Global Markets
(713) 853-1885

**********************************************************************
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.
**********************************************************************


Never mind, I think I found it.

Thanks, anyway!

 -----Original Message-----
From: 	Heard, Marie
Sent:	Tuesday, November 06, 2001 11:17 AM
To:	Crawford, Sharon
Subject:	Williams

Sharon:

Can you send me a copy of the physical gas master with Williams Energy Marketing & Trading Company?

Thanks!

Marie


When posting Short Term Curves -> you are posting a 6x8+24 into the 7x8 price column.
For Short Term the 7x8 column is your 6x8+24 price.  (The 6x8+24 price column is not relevant to you.)

Please use this order when posting:
ON PEAK
SUNDAY
OFF PEAK


Please confirm that the changes to change order #2 reflect NW's request.

Thanks,

Kay


I wanted to give you some feedback.  Elena Chilkina has gone way above the
call of duty to help me on a very important research project.  I am trying to
conduct some research on the global fuels market for Jeff Shankman.  When I
mentioned this to Elena, she was extraordinarily helpful in helping me
compile some very useful information on very short notice.  She was able to
quickly define the scope of the project and gather some pertinent
information. Because this was not one of her regular assignments, she put in
many extra hours to help us out on this project.

I just wanted to let you know about a job well done.

Regards,

Craig


-----Original Message-----
From: michael.j.napolitana@db.com [mailto:michael.j.napolitana@db.com]
Sent: Monday, April 09, 2001 8:44 AM
To: anil.sama@intel.com
Subject: RE: Help with Research on Pepsi/Quaker Oats

Anil,

Our firm re-launched coverage right before the acquisition, they issued two
First Call notes, no report.  I hope these help.  How is your handspring
stuff coming?

Mike
PEPSICO INC. [PEP] "BUY"
"Actual Results May Vary Materially From Expectations Described Herein"
----------------------------------------------------------------------------
---
Date:            12/04/2000    EPS          1999A       2000E       2001E
Price:           43.81         1Q           0.25        0.29        0.32
52-Wk Range:     49 - 30       2Q           0.31        0.38        0.43
Ann Dividend:    0.56          3Q           0.34        0.40A       0.44
Ann Div Yld:     1.28%         4Q           0.33        0.38        0.45
Mkt Cap (mm):    63,240        FY(Dec.)     1.24        1.45        1.64
3-Yr Growth:     13%           FY  P/EPS   35.3X       30.2X       26.7X
CY    EPS      NE     NE          NE
Est. Changed     No            CY  P/EPS        NM       NM            NM
----------------------------------------------------------------------------
---
Industry:            CONSUMER PRODUCTS
Shares Outstanding(Mil.):  1443.516
Return On Equity (1999) :    30.0%
----------------------------------------------------------------------------
---

DETAILS:
"Quaker Acquisition Meets the Lion's Share of Criterion"

Yesterday PepsiCo announced Quaker would be acquired for stock at an
exchange rate of 2.3 shares per OAT share with quasi collars around $40-$45
per PEP share.  CEO Roger Enrico stated the deal as modeled would boost the
"big 4" financial metrics:  1- Top Line to 7%+, 2 - EBIT Growth to 11-12%,
3- EPS to 13-14% and 4 -ROIC + 200 basis points.  In our view, this one
appears more likely to go 2 for 4 or 3 for 4, with higher returns on our
calculations providing the most significant challenge.  As we stated in our
11/29 note, the mere act of doing the deal on a pooling basis does not
change the fact that $13.5 billion in stock will be floated (@$43.5/PEP
share)- thereby boosting the capital base by which ROIC is measured.  In
addition, we believe earnings accretion relies to some degree on integration
savings which may be "un-bundled" as non-strategic food businesses (and
their distribution systems) are eventually sold.

"Add More To the Core"

PEP has long maintained the higher degree of on-the-go food consumption
necessitates increased product offerings around Frito-Lay in North America.
Quaker's grain based snacks and nutrition bars may fit the bill - but can
they produce enough turns to make it inside Frito's vaunted DSD (direct
store delivery) trucks?  If so, why has PEP not previously attempted to
carve its own niche?  We expect a volume pop as newly freed up system
capacity pushes the new snacks, but do not know whether the Gatorade power
bar and Quaker Rice Cakes can produce a sustainable channel presence.  For
example, in most core products (Fritos, Doritos, Lays) PEP is the undisputed
industry leader where a viable number two player really does not exist.
Many of the newly acquired "add more" ideas target the morning day part and
are likely to face formidable competition from Kraft, General Mills and
Kellogg.  In short, we believe food expansion outside of salty snacks is
laudable (i.e., it may be difficult to growing at the same historic rate as
the last ten years), but PEP's impressive supply chain power and value to
retailers may not readily overcome significant execution risk and heightened
competition.

The Gator Gumshoes.

The clear-cut  winner appears to be the Pepsi bottlers.  Management is
justifiably muted in defining the Gatorade  - PBG/WH opportunity in broad
terms, why disprupt OAT's established warehouse distribution?  More to the
point, we believe management recognizes that much like SOBE, its new, albeit
smaller alt beverage brethren, significant distribution retooling at the
outset risks disruption at retail.  However, we expect the system bottlers
to create volume opportunities immediately.  For example, if only PBG's
vending and "up and down" street distribution capabilities were deployed,
the incremental case volume contribution could create 2% additional growth
points in the first year.  Given such new portal potential, we are therefore
puzzled by management's 9% guidance for Gatorade sales - nearly 3% lower
than anticipated 2000 results.  Is the bar being re-set to make numbers?
Might the mighty green bottle be facing saturation in existing channels as
it closes in on 85% market share? Or might the Pepsi system,  looking to
improve Gatorade margins by gradually transitioning to lower slotting fees,
be anticipating minor volume disruptions?  On this last point, we say
"minor" because the slotting issue we allude to most likely applies to the
convenience and gas channel where Gatorade's indelible brand equity makes it
a must stock for retailers.  We believe that lower CSD volumes in 2000 are
highly instructive: Even the strongest brands face execution risk.

Do food retailers really want to empower bigger suppliers?

PEP's profit contribution to retail is well documented.  Aided by strong
brands in three categories and a very efficient distribution system, it is a
major provider of returns.  Gatorade as well as the non-snack food
businesses only augment this role.  In this light, management expects it's
relatively underutilized Tropicana ambient juice brands (Twister) to get a
boost.  Pure economics make this one inviting, but from a retailer
standpoint, (think Bentonville, Arkansas) does giving up leverage to
manufacturers matter?  Again, CSD's are illustrative of the potential risk.
Faced with an arguably better economic profit from higher CSD prices for the
category, certain retailers siezed the opportunity to boost private label
shares at lower prices.  We note that The Twister portfolio's brand equity
is not nearly as strong as Tropicana Pure Premium's, making the logically
appealing distribution opportunity somewhat easier for retailers to resist.

Coin of the Realm: Why does a company use its stock as deal currency?

Because it is likely fairly valued or even overvalued relative to debt based
alternatives.  If there is such as thing as a "cheap way" to spend $13.5
billion, stock swaps in GAAP world is it.  When book value equity is used,
PEP return on capital actually rises 50 via the OAT deal.  (We impact ROIC
for both Quaker's Snapple charge and this deal's anticipated write-off).
However, a share issuance, which equates to much more, will be floated.  We
estimate the consideration of this cost on an economic basis (i.e., what was
spent) would negatively impact return on capital by 400 basis points.  In
addition, while a model based on the present value of future cash flows
might produce a more favorable valuation, we see three hurdles to building
it:

1- No clear visibility on capital allocation or growth prospects for
Gatorade outside the U.S.  In our view this aspect of the deal alone may be
the ultimate arbiter of success or failure.

2- The integration of much of Quaker's food businesses may be only
temporary.

3- Execution issues on the domestic snack and isotonic businesses may yield
a bumpy set of cash flows over the next two years.

On this last point, we believe PEP's experience in restructuring during the
1997-1999 period bears some consideration.  A more brand focussed,
horizontal business model would indeed prove superior to a more vertically
integrated one that included restaurants and bottling.  However, it took
investors quite some time to realize stock price appreciation.  In the
current transaction, OAT also portends strategic value, but the benefits may
not be immediate.

Maintain BUY rating.

For the next 6 months, we see deal integration trumping PepsiCo's many
positive operational attributes.  We see the stock as range bound between
$40-45 until the close in the spring.  At that point, many of the margin
opportunities should become more apparent.  Therefore, we maintain our
12-month price target of $49.

----------------------------------------------------------------------------
--
PEPSICO INC. [PEP] "BUY"
PEPSICO: TRIPPING ON THE ELECTROLYTE FANTASTIC--MEETING WITH CFO INDRA
NOOYI
----------------------------------------------------------------------------
---
Date:            11/29/2000    EPS          1999A       2000E       2001E
Price:           45.38         1Q           0.25        0.29        0.32
52-Wk Range:     49 - 30       2Q           0.31        0.38        0.43
Ann Dividend:    0.56          3Q           0.34        0.40A       0.44
Ann Div Yld:     1.23%         4Q           0.33        0.38        0.45
Mkt Cap (mm):    65,507        FY(Dec.)     1.24        1.45        1.64
3-Yr Growth:     13%           FY  P/EPS   36.6X       31.3X       27.7X
CY    EPS      NE     NE          NE
Est. Changed     No            CY  P/EPS        NM       NM            NM
----------------------------------------------------------------------------
---
Industry:            CONSUMER PRODUCTS
Shares Outstanding(Mil.):  1443.516
Return On Equity (1999) :    30.0%
----------------------------------------------------------------------------
---

HIGHLIGHTS:
Yogi Knows Best
Yesterday, we met with PepsiCo CFO Indra Nooyi, the de facto keeper of the
company's rigorous financial discipline.  Without the ability to make direct
inquiries regarding Quaker, (it only elicits a "no comment" in a Reg. FD
world), our discussion helped build the oatmeal/electrolyte mosaic to the
point where the company's interest may best be capsulated as a
"non-denial/denial". In other words, that great pinstriped poet and
philosopher may be right on with PEP/OAT - "It ain't over till it's over."

Round Up the Usual Suspects
Following the rumored, and in our view, temporarily aborted plays for OAT by
PEP, KO and Danone, a faint Swiss whisper is being heard from Nestle.  Why
not just throw in Cadbury, Kraft and any other food/beverage company with an
unlevered pulse?  Not a bad thing for Quaker, in our opinion, but after
paying so much for Gatorade - we estimate a $105 takeout implies an EBITDA
multiple north of 23 times for the green stuff - only a company with a well
established global distribution system has any shot at attaining enough
return to make it work.  That leaves three - KO, PEP and MO (Kraft) with the
latter perhaps a tad preoccupied at this time.  And if Coke really is
done...

Framing Deal Criterion in a Place Called Purchase
Nooyi remains steadfast that any deal would not dilute earnings or impair
return on capital.  From our standpoint, here's the rub: these metrics point
to stock based pooling which is arguably inferior to a debt based purchase.
PEP's significant cash flow and underlevered balance sheet argue
compellingly for using debt - the after-tax capital cost is cheaper and it
would be free to dispose of non-strategic assets.  We believe such an
approach would produce more attractive returns, but cause earnings dilution
- PEP no-no.  Alternatively, a tax-free stock swap may be accretive to
earnings while the true capital cost is hidden thanks to the vagaries of
GAAP accounting.  In fact, equity capital cost in our analysis is higher and
the company would be holding a portfolio of food businesses for two years
that are for the most part lower returning assets (hot cereal being an
exception).  Hence, we believe a stock-based play for Quaker faces an uphill
battle to value creation.

AmBevolution?
We discussed Pepsi's burgeoning relationship with AmBev, the Brazilian beer
and soft drink giant.  Given PEP's relatively small (6%) soft drink share,
AmBev's distribution is critical to success.  Despite a lower implied profit
for AmBev as a Pepsi bottler vs. its own brands, Nooyi sees significant
opportunity once market execution matches that of AmBev's leading brands
such as Antarctica Guarana.  The trump card here may be AmBev's attraction
to "Power of One" style initiatives with PepsiCo's snacks operations.  Such
developments are encouraging, in our opinion, but our Latin beverage team
sees domestic beer as AmBev's most compelling near-term opportunity.

> -----Original Message-----
> From: Sama, Anil [SMTP:anil.sama@intel.com]
> Sent: Thursday, April 05, 2001 10:45 PM
> To: michael.j.napolitana@db.com
> Subject: Help with Research on Pepsi/Quaker Oats
>
> Hi Mike,
>
> For our Financial Info Analysis class project, we are looking
> for analyst reports on the Pepsi / Quaker Oats acquisition
> that was announced in January.
>
> Would your firm have any analysis/reports on this merger?
> If so, could you provide us some of that analysis?
>
> Thanks,
> - Anil.


market_relations@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List:

Dear Market Participants,

Due to the outage of the NYISO website today (October 16, 2001), the
following
changes originally scheduled for implementation today have been rescheduled
for
October 30, 2001.

1) Deployment of BEA's WebLogic application server.

2) Data postings for real-time internal transmission flows and limits.

3) Transmission line scheduled and actual outages.

In addition, the MIS outage scheduled for October 17, 2001 at 11:35 AM
has also been cancelled.  This outage will be rescheduled.

The NYISO apologizes for any inconvenience that this unscheduled outage
has caused and we are working to bring the website back on-line as soon
as possible.

If you have any questions, please call Customer Relations at 518-356-6060.

Regards,

Customer Relations


Did you get this from Jean?


I would like to sign up for the lottery for all four days.

Thanks,

Eric

	Enron North America Corp.

	From:  Cheryl Kuehl @ ENRON                           03/29/2000 08:57 AM

To:
cc:  (bcc: Eric Bass/HOU/ECT)
Subject: Associate & Analyst Programs Astro Tickets

The Associate & Analyst Programs are please to present you with the
opportunity to attend one of the first four Astro's games in Enron Field.
There are a limited number of tickets, therefore the tickets will be given
away through a lottery system.  Program Management will draw names on
Wednesday, March 29 and the lottery winners will be notified by 4:00 p.m. of
the same day.

The Lottery rules are as follows:
You are limited to two (2) tickets.  You may submit your name for all 4
games.  However, you are only eligible to receive tickets to one game.  We
must have your reply by 2:00 p.m.  Due to the short time frame replies
received after 2:00 p.m. cannot be considered.

 Games     Number of tickets available
 March 30 vs. New York Yankees    22
 March 31 vs. New York Yankees    38
 April 1 vs. Texas Rangers     68
 April 7 vs. Philadelphia Phillies     15

To sign up for the lottery, please contact Cheryl Kuehl via lotus notes.

Thank you
Celeste Roberts
Director
Associate & Analyst Programs


Just to clarify.

The product that is traded in New York is a financial swap that settles
against the Day Ahead clearing price.  It is changes to HQ's physical
deliveries (0 to 1500 MW) into NY that can swing the clearing price by at
least $20.  This is not just due to the price that HQ sells their energy for,
but is mostly due to the impact on congestion in NY of HQ deliveries.  When
HQ is not delivering high volumes, NY is generally uncongested and the price
for the entire state is set by gas generation in the East.  When HQ delivers
high volumes, the system becomes congested and the west price is set by much
lower cost resources and the east price is set by gas generation.  The impact
on the NY West price (Zone A) is at least $15 dollars.  Since the majority of
the OTC trades are settled against this price, it gives HQ tremendous ability
to trade financially and then influence the settlement price.  Large
generators in New York west could also do this but it would be quite costly
for them to withhold 1000 MW of generation and this would be easily noticed.
HQ however, has hydro generation and can easily store their water for
delivery another day.

HQ trades directly in the New York OTC market as HQ Energy Services (US)
Inc..  The general market realizes the impact that HQ can have on the
clearing price and will often pull out of the market when HQ is trading.  I
have heard from a couple of sources that HQ is using Select to trade for them
to avoid this problem but I cannot confirm this.

Hope this helps clarify things.

Tom.

	From:  Christi L Nicolay @ ECT                           09/22/2000 11:03 AM

To: Sarah Novosel/Corp/Enron@Enron
cc: Howard Fromer/HOU/EES@EES, James D Steffes/HOU/EES@EES, Kevin M
Presto/HOU/ECT@ECT, Tom May/Corp/Enron@Enron, Joe Hartsoe/Corp/Enron@Enron,
Richard Shapiro/HOU/EES@EES, Steven J Kean/NA/Enron@Enron

Subject: HQ Energy Mkt. Power

Tom May asked me to get a summary of what FERC reviewed and why FERC found
that HQ had mitigated its market power initially.  HQ's 3 year update is due
in Nov.

HQ, acting through Select, has the ability to move the price $20 or more.

In accordance with our strategy to protest MBRs for problem utilties, EPMI
will most probably protest the HQ request for continuation of MBRs.  Please
proceed with the RCR for Tabors and B&P to research this problem and begin
work on a protest.


i have a new one for you to download on napster:

lord tariq and peter gunz:   deja vu.

you will definately like this one.  let me know when it is a good time to
burn another cd.


ok so i am bored.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 4:05 PM
To:	Nelson, Michelle
Subject:	RE:

see what happens when i try and have a nice conversation

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 4:03 PM
To:	Maggi, Mike
Subject:	RE:

you are jack frost the jack ass!!  he he

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 4:03 PM
To:	Nelson, Michelle
Subject:	RE:

i am the heat miser

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 4:02 PM
To:	Maggi, Mike
Subject:

Frosty the Snowman.....


is this on the website?


Danetta worked it for the  Fountain Valley project.  How long has she been
here?  I didn't know there was anyone other than you.

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 04/02/2001 02:24:25 PM
To: "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>
cc:

Subject: RE: Enron/Delta Turbine Acquisition

Kay, unless I've lost my mind, I've never seen these docs before.  What deal
was it on.  I don't have anything on CA Development.  I don't remember
executing any attorney's opinions?

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Monday, April 02, 2001 2:47 PM
To: Shoemaker, Kent (GEAE)
Subject: RE: Enron/Delta Turbine Acquisition

Yes, this stuff is for the purchaser's bank.

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 04/02/2001 01:45:44
PM

To:   "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>
cc:

Subject:  RE: Enron/Delta Turbine Acquisition

Kay:  Is there anything different from the forms you and I worked on
earlier.

Kent

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Monday, April 02, 2001 1:32 PM
To: danetta.beaushaw@ps.ge.com
Cc: kent.shoemaker@ae.ge.com; lee.johnson@ps.ge.com;
Stephen.Thome@enron.com
Subject: Enron/Delta Turbine Acquisition

Hi Danetta,

I heard a rumor that you are the one to look at this stuff.  I know that
you recently went through the process in connection with the Fountain
Valley transaction.  I'm happy to serve up those forms to Freshfields if
that makes it is easier for you.

My number is 713 345 7566.

Thanks,

Kay

---------------------- Forwarded by Kay Mann/Corp/Enron on 04/02/2001 12:27
PM ---------------------------

Kay Mann
04/02/2001 10:09 AM

To:   kent.shoemaker@ae.ge.com
cc:   lee.johnson@ss.ps.ge.com

Subject:  Enron/Delta Turbine Acquisition

Hi Kent,

I don't know whether Lee has mentioned the Delta Power deal that we are
working on.  We are taking 4 turbines and putting them in an LLC, and
selling some of the interest in the LLC to Delta Power.  Three of the
turbines are turbines formerally known as LV Co Gen turbines, and we are
buying new LM's to replace the ones we are using here.  In any event, Delta
Power is financing the deal, and they have asked that we get GE sign off on
the attached documents.  Therefore, I would be interested in your response
to the attached.

I understand that Lee is in New Orleans today, but I'll send him a copy
anyway.

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/02/2001 10:05
AM ---------------------------

"PARKER, Isabel" <isabel.parker@freshfields.com> on 04/01/2001 05:10:38 PM

To:   "Carolyn Campbell (E-mail)" <CCampbell@KSLAW.com>, "John Keffer
      (E-mail)" <JKeffer@KSLAW.com>, "Kay Mann (E-mail)"
      <kay.mann@enron.com>, "Rick Vicens (E-mail)"
      <rvicens@deltapower.com>, "Gregory F. Lang (E-mail)"
      <gregorylang@paulhastings.com>
cc:   "BURKE, Ted (TDB)" <ted.burke@freshfields.com>

Subject:  Enron/Delta Turbine Acquisition

This e-mail is confidential and may well also be legally privileged. If you
have received it in error, you are on notice of its status.  Please notify
us immediately by reply e-mail and then delete this message from your
system.  Please do not copy it or use it for any purposes, or disclose its
contents to any other person:  to do so could be a breach of confidence.
Thank you for your co-operation.  Please contact our
IT Helpdesk on +44 (0) 20 7936 4000 Ext.2000 or email
ITHelp@freshfields.com if you need assistance.

As discussed during our call earlier this afternoon, please find attached
for onward transmission to GE a draft of (i) the GE Consent and Agreement
and (ii) the GE legal opinion.

Kind regards
Isabel

(See attached file: NY003700033.DOC)
(See attached file: NY003699615.DOC)


If you are looking to feed and challenge your faith, visit
Crosswalk.com's Spiritual Life Channel at:
http://spiritual.crosswalk.com
-----------
T O D A Y    G O D    I S    F I R S T
                  Marketplace Meditations
                       by Os Hillman

Fruitful Suffering

..."It is because God has made me fruitful in the land of my
suffering."
- (Genesis 41:52)

Joseph named his second son Ephraim. Ephraim was given to him
after he had been delivered from his suffering of 13 years.
Joseph said that he named him this because God had made him
fruitful in the land of his suffering. Ephraim means "twice
fruitful."

Joseph was fruitful in two instances. He was fruitful during his
time of adversity and in his prosperity. When God brings us into
a time of suffering, it can be a fruitful time. It's rare for us
to see the fruit during the suffering period. But know that the
roots are going deep into the spiritual soil of our soul because
of our pressing in to God during our time of suffering. This is
producing a work in our character that cannot be seen until it
finishes the process. Such was the case for Joseph.

It was not until several years after such a time of suffering
that I began to see the fruit of the trials that the Lord allowed
me to experience. How grateful I am to understand some of the
"why" that has led to a new life in Him that I would never have
had without this period.

Samson had great anointing but lacked character. We see many
today who have great anointing yet lack character. But God is
raising up Josephs who not only have great anointing for these
days but also great character. Suffering produces character.

If you find yourself in a time of suffering, now is the time to
press into God. Let your roots grow deeper. Whenever there is a
famine, tree roots are forced to drive deeper into the soil to
find water. These times are designed to create such a deep-rooted
faith that our natures will be changed forever.

* * * * * * * * * * * * Author's Note * * * * * * * * * * *

Want some practical ways to integrate your faith and work?
Read the free article Christians At Work.
Send email to christiansatwork@quicktell.com.
We will forward it to you.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Published and distributed by Crosswalk.com, this daily devotional is
written by Os Hillman (os@marketplaceleaders.org).  Os is president of
Marketplace Leaders, an Atlanta based ministry teaching Biblical
principles for career and business success.  He offers a FREE newsletter
and other resources at:
http://www.marketplaceleaders.org

Order "TGIF: Today God I s  First" - 365 daily meditations to motivate
and inspire for $17 for TGIF subscribers. Click here to order:

http://www.marketplaceleaders.org/displayroom/skudetail.nhtml?uid=10055

To support Os Hillman  & Marketplace Leaders , click:
 https://nhf.org/applications/donate.htm?FDN=Marketplace%2BLeaders

Mail: 3520 Habersham Club Drive, Cumming, Georgia 30041 USA.

____________________SUBSCRIPTION INFO_______________________

* You subscribed to Marketplace Meditations as:
         < jeff.king@enron.com >
* To unsubscribe from this newsletter immediately, click here:
         < http://link.crosswalk.com/UM/U.ASP?A3.12.261895 >
  If that link is not clickable, simply copy and paste it into
  your browser window.
* To change your address:  unsubscribe your old address
  and then subscribe your new address.
* To subscribe, send an email to:
  < SUBSCRIBE-marketplace@lists.crosswalk.com > or go to
  < http://www.crosswalk.com/lists > for a complete list of
  our newsletters.
* Copyright ? 2001 Crosswalk.com, Inc. and its Content
  Providers. All rights reserved.

____________________________________________________________


In anticipation of your meeting tomorrow, I have attached a summary of
Enron's credit exposure to PG&E Corp and its affiliates as of Friday, January
5th.  I will be happy to provide you updated numbers if necessary in the AM.

Please call if you have any questions.

Bill


El Paso Pipeline Update - The US Dept. of Transportation approved reinstating
gas service for El Paso's Line 1100 damaged in the recent explosion.  This
brought 400 million cfd of capacity back on stream to the California border.
The ruptured Line 1103 will not be repaired until further investigations have
been completed.  The availability of Line 1100 capacity had the following
basis impact:  Permian to California basis for October dropped from Monday by
$1.30/MMBtu while November '00 - March '01 and April - October '01 narrowed
by $0.43 and $0.37 respectively.  Also, TW shippers are no longer using El
Paso Window Rock as a receipt point on our system.

Transport Options Program - Representatives from 7 companies comprising a
majority of TW's larger shippers attended our workshop on this new tariff
filing.  All attendees were given in advance of the meeting a draft copy of
the proposed filing for their review and comment.  The TW Team (Jeff Fawcett
and Susan Scott) did an outstanding job of preparing the material, answering
questions, and anticipating shipper concerns related to this new service.
The only serious objections raised  by the customers were concerns related
to: (1) potential abuses by marketing affiliates and (2) hoarding of option
capacity by any one shipper.  Among the  solutions proposed were restricting
Enron affiliates  access to the program and limiting the volume of
outstanding options any one shipper can hold.  At the end of the meeting, we
asked for final comments to be submitted to TW by next week in anticipation
of filing the tariff with the FERC in mid-September.

KN/Oneok Contract -  We negotiated a 12 month max rate agreement with Oneok
for 20,000 MMBtu/d of west flow capacity starting February 1, 2001.  We also
negotiated in the contract a provision whereby if Oneok releases any of the
capacity above the max rate, then TW shares 50/50 in the incremental revenue.

EOG Resources - We are negotiating a new transport agreement with EOG for
incremental volume they could bring into TW's West Texas lateral.  Initially,
the volume was 4 - 5,000 MMBtu/d but now may be at least 15,000 MMBtu/d.  EOG
is reviewing the proposed interconnect and operating agreement.  EOG has not
typically held transport capacity on TW in the past.

September Pipe Outage - We are trying to accommodate west flowing shippers
whose transport will be cut from September 6-10 due to DOT testing on
Transwestern.  The plan is to facilitate the use of PG&E Market Center
storage to supply west markets during the outage.  Volume may be as high as
20 -50,000 MMBtu/d at an incremental rate for TW of $.05 -.08/MMBtu.


Here's a summary:

? WGU focuses on "competency-based education"--apparently it gives credit for
job experience, etc.
? Degrees offered include:  AS, BS, MS in Learning and Technology, Graduate
Certificates in Technology and Instructional Design, and an Undergraduate
Certificate.  Focus is teaching and information technology.
? They appear to offer course-work as an employee-benefit and the potential
to earn a college degree through "distance learning"--like University of
Phoenix.
? On 11.27.00, WGU received "Candidate For Accreditation" status by the
Inter-Regional Accrediting Committee (IRAC).
? WGU partners with AT&T, Cisco Systems, Novell, Sun Microsystems, and 3Com.
? WGU has a "National Advisory Board," which aids WGU in planning and
implementation.  The NAB consists of AOL, Apple, AT&T, Cisco Systems,
Convergys, Drake International, IBM, ITP, KPMG Consulting, Micron, Microsoft,
Novell, SallieMae, SCT, Sun Microsystems, and 3Com
? Participating States include all the WGA States:  the 12 Western states,
Guam, Indiana, Nebraska, North Dakota, Oklahoma, South Dakota, and Texas.
? Board of Trustees includes: the Chairman of 3Com, a VP of Sun, President
Northern Arizona University, Representative from the Alfred P. Sloan
Foundation, VP Gov't Affairs for AT&T, Nebraska Coordinating Commission on
Higher Education, Roy Romer, General Manager of Global Education Industry for
IBM, and Governor's Geringer, Knowles, Locke, and Leavitt.
? Governor Leavitt is Co-Chair with Governor Locke.


Elvis Grabec 5
Denver K - if available - 0


Casey,

Can you have someone follow up with Hai and Harry and see how all these reports are working?

Stacey

 -----Original Message-----
From: 	Postlethwaite, John
Sent:	Monday, January 07, 2002 3:02 PM
To:	White, Stacey W.; Evans, Casey
Subject:	something else to think about

I think we really need to get someone to ensure that the option sensitivity report is working and working quickly. If we are going to be trading a lot of financial deals then this would be beneficial. I know Hai did a lot of testing on it but I thought there were still problems. Am I wrong?

John


---------------------- Forwarded by Juan Hernandez/Corp/Enron on 04/17/2001
04:07 PM ---------------------------

Rudy Acevedo@ECT
04/17/2001 01:59 PM
To: John Kinser/HOU/ECT@ECT, Rudy Acevedo/HOU/ECT@ECT, Juan
Hernandez/Corp/Enron@ENRON, Miguel L Garcia/NA/Enron@ENRON, Joe
Stepenovitch/Corp/Enron@Enron, Joe Errigo/Corp/Enron@Enron, Doug
Miller/Corp/Enron@Enron, Larry F Campbell/NA/Enron@Enron, Keller
Mayeaux/Corp/Enron@Enron, Chad Starnes/Corp/Enron@Enron, Dean
Laurent/HOU/ECT@ECT, Don Baughman/HOU/ECT@ECT, Christopher
Watts/NA/Enron@Enron, Steve Olinde/Corp/Enron@Enron, Larry
Jester/Corp/Enron@ENRON, Juan Padron/NA/Enron@Enron, Benjamin
Rogers/HOU/ECT@ECT, Narsimha Misra/NA/Enron@Enron, Patrick Hanse/HOU/ECT@ECT,
Mauricio Trejo/Enron@EnronXGate, Dustin Collins/HOU/ECT@ECT
cc:

Subject: meeting

All you losers are required to attend a mandatory meeting on monday @4:30.
and that means you J.D. and Don


As we continue to mold Enron Net Works into the service organization model discussed at the ENW All Employee meeting on Oct. 5, we are pleased to announce the following changes to the organization.

Steve Hotte, currently transitioning into the role of CIO for Enron Americas, will take responsibility for the following areas:
Gas Trading - Zhiyong Wei
Power Trading - Steve Nat
Back Office - Ramesh Rao
Commercial Coordination - Tommy Yanowski

John Paskin, currently transitioning into role of CIO for Corporate Systems will lead the following teams:
ISC - Allan Sommer
Enterprise Portal - Tony Mends
Treasury - Tom Conley
Intranet/Livelink/Graphics - Scott Cleverly, JoAnne Knodel, Vikki McCullough
CRM Strategy - Kevin Guion
Matrix with HRIS - Kathy Schultea

Steve Stock will move into the new role of Enterprise Frameworks reporting to Mark Pickering and will lead the following teams:
Architecture - John Simmons
Development Support - Richard Burchfield
Global Data - Joe Wong
MKM - Arlene Ogden
Enterprise RAC
 	 RAC Analytics - Winston Jia
  	 RAC Infrastructure - Ramesh Ganapathy
Global Valuation - Dana Docherty

Interviews for a CIO for EGS are currently in progress.

Please join us in congratulating all of these individuals on their new responsibilities.  A copy of the Organization structure is attached for your review.

Greg, Sally and Mark


G$-

Hey brother, the move is setup for Wednesday, November 15.  They are going to
be packing and moving Chris from 8am-12am, then they will head over to your
place.  I'll have Chris give you a call (@ 713-853-3512) when they are
finishing up at his place, so you can head over to your house.

Thanks again,

Bruce

----- Forwarded by Bruce Rudy/NA/Enron on 11/10/2000 04:15 PM -----

	Chris Jantz
	11/10/2000 03:59 PM

		 To: Bruce Rudy/NA/Enron@Enron
		 cc:
		 Subject: Move Info

Here ya go.

Chris


Yes, close will take priority.  That is a free time job.  Thanks for the update.

	  From:  Dana Davis @ ECT                           02/06/2001 11:49 AM

To:	Brian Schwertner/NA/Enron@Enron
cc:

Subject:	Question

Is it OK that I let entries take priority over those documents that you wanted me to hole punch and place in binders for you?  I thought I could do it for sure today and I still might be able too but I want to make sure that I don't fall behind on the entries.  Is that OK?  Oh yeah, Brad and Lisa Kang had me working on projects for them Friday and Monday.


Just a note that as of 4/1/00, CES' SST capacity on TCO will decrease. We have
submitted a request to COH for Storage Capacity and Transport (FSS & SST) for
the 00-01 season. COH should have the actual numbers late Friday, but I have
made a guesstimate below. You only get 50% of your Oct-Mar WD capacity for
Apr-Sep Inj, which could be around 50,000 dth/d. The numbers below are from
3/00, so 4/00 should be smaller, but I will forward to you as soon as I can.


You're on!

From: Joan Quick on 10/18/2000 01:06 PM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: trco transport rates

oops.  forgot next week is start of bidweek.   so, how about dinner monday
nite?

Chris Germany
10/18/2000 01:04 PM
To: Joan Quick/HOU/ECT@ECT
cc:
Subject: Re: trco transport rates

No can do on lunch next week.  How about after work at that little Italian
place (i think) close to St Thomas High School?  We talked about this place
before

From: Joan Quick on 10/18/2000 01:02 PM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: trco transport rates

thanks.  we need to get together for lunch.  i would even do chic filet.  i
can do any day next week, except monday.

joan

Chris Germany
10/18/2000 08:17 AM
To: Joan Quick/HOU/ECT@ECT
cc:
Subject: Re: trco transport rates

hey you, everything is still the same but here they are just as a double check

Zone Comm  Fuel
1-1 .0653  .35%
2-2 .0694  .46%
3-3 .0792  .45%

From: Joan Quick on 10/16/2000 04:52 PM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: trco transport rates

hey you,

it's october, and was wondering if trco has changed up their transport/fuel
fees.

thanks
joan


green bay and chic under 39


Kim,

Here are the drafts for Anaheim / LA.  I am working on Arizona Public Service.

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


B&C

800   357  4410  ext  6422  Amy regardinding Telefonica


----- Forwarded by Tana Jones/HOU/ECT on 10/09/2000 08:47 AM -----

	Bradley Diebner
	10/06/2000 04:32 PM

		 To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Sheri Thomas/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT,
Bernice Rodriguez/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Debbie R
Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT,
Molly Harris/HOU/ECT@ECT, Cynthia Clark/Corp/Enron@ENRON, Mary G
Gosnell/HOU/ECT@ECT, Enron Europe Global Contracts and Facilities, Enron
Europe Global CounterParty, Stephanie Sever/HOU/ECT@ECT, Bradley
Diebner/HOU/ECT@ECT, Stacey Richardson/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT,
Adnan Patel/Corp/Enron@ENRON, Claudia Clark/HOU/ECT@ECT, William S
Bradford/HOU/ECT@ECT, Lisa Lees/HOU/ECT@ECT
		 cc:
		 Subject: EOL Credit Responses 10/06/00

The EOL approvals for 10/06/00 are attached below.

Regards,
bd


To:	The Enron Management Committee

The Enron Corp. Board of Directors approved a new Risk Management Policy (the "Policy") on August 14, 2001, and notice has been distributed to Enron employees to announce the posting of this policy on the Enron intranet website at http://home.enron.com/resources (without market risk limits due to confidentiality).  The Policy includes a three page Executive Summary providing an overview of risk management practices for the four major types of risks addressed: (a) market risk; (b) credit risk; (c) operational risk and (d) liquidity/funding risk, and this summary is attached to this e-mail for your convenience.  The credit policy was incorporated without change, and the Transaction Approval Process and Guarantee Approval Processes were also incorporated with updating for specific approval authorities.

This e-mail message is being sent to the Enron Management Committee to highlight some key aspects of the Company's market risk management practices which may be of interest.

The Policy established a new Risk Management Committee, members of which are the Chief Risk Officer and any others designated by the CEO of Enron Corp.  During this transition period, existing Commodity Group Limits as of August 14th remain in effect, and Enron Business Unit Limits are assigned accordingly.  These limits may be further adjusted by the Risk Management Committee and the CEO, and your market risk managers will be working with you to review the limit structure for your business unit's activities to facilitate compliance with the Policy and your business initiatives.  RAC is currently working with Global Risk Management Operations to develop appropriate risk reporting that meets the Policy requirements and the needs of business unit management.

Regards,
Cassandra Schultz
Vice President, RAC
713-853-0429
cassandra.schultz@enron.com

Summary of Changes to Market Risk Management Practices

In addition to consolidating Enron's various risk management policies and procedures into one comprehensive Policy, some substantive changes and clarifications were made to the Company's market risk management practices, as summarized below.

1.	Increased the VaR Limit for the Trading Portfolio, providing discretion to the Enron Corp. CEO ("CEO") to allocate such VaR limits within defined parameters
2.	Established an Expected Tail Loss Advisory Limit for the Trading Portfolio
3.	Revised the Market Risk Limit Structure within each Portfolio to delegate more discretion for individual Business Unit and Commodity Group limits to the CEO and Risk Management Committee
a)   Concentration VaR Limits approved by Board of Directors
b)   Business Unit VaR Limits approved by CEO / Risk Management Committee
c)   Commodity Group Limits for each Business Unit approved by CEO / Risk Management Committee
d)   Trader/Desk Limits approved by Business Unit Office of the Chairman

Key Points re: the Limit Structure
1.	Concentration Limits are established on 6 large buckets of commodity groups; this bucketing focuses on market indicators from a Board perspective, not according to Enron's organizational structure;
?	1) Americas Gas, 2) Americas Power, 3) European Gas & Power,
4) Products, 5) Financials, and 6) Emerging Businesses
o	Examples:  Americas Power Concentration Limit includes Global Risk Markets; Financials Concentration Limit includes Credit; Appendix A of the Policy lists the individual Commodity Groups comprising each Concentration Limit
2.	CEO/Risk Management Committee has discretion to allocate the Trading Portfolio VaR limit among the Enron Business Units, subject to the Concentration Limits approved by the Board
3.	Expected Tail Loss is a new risk metric, and accordingly, an advisory limit is established only at the total Trading Portfolio level; some Commodity Groups may have the measurement calculated in RisktRAC, but no limit is set
4.	Business Unit VaR Limits are to be set for each Enron Business Unit (i.e. Enron Americas, Enron Global Markets, Enron Europe, etc. - any Business Units recognized as having authority for trading by the CEO)
5.	Commodity Group Limits are now to be set at a Business Unit level, representing the individual Business Unit's authority for trading specific commodities
?	every Business Unit shall have a Commodity Group Limit for any commodities for which they are authorized to trade;
?	these Commodity Group Limits and corresponding risk reporting will enable top management and the Risk Management Committee to quickly understand risk parameters on a "pure" commodity group basis within each Enron Business Unit;
6.	Each Enron Business Unit OOC can establish Trader/Desk Level Limits and/or related risk reporting as they require, enabling them to view their trading results the way they manage their business (i.e., the same trader may actually trade more than one commodity, and therefore wish to view risk parameters for several commodities combined, etc.)

Risk Management Benefits of Limit Structure: 1) CEO flexibility below the Concentration Limit level, and 2) individual Enron Business Units have clearly defined trading authority, enabling the Risk Management Committee to authorize business units to trade in the same commodities while strengthening risk management practices to facilitate compliance with the Board approved Concentration Limits

Limit Monitoring and Reporting
1.	All position and VaR violations are triggered at 100% of the respective limit
2.	All Daily Loss notifications are triggered at 100% of the VaR limit
3.	All Cumulative 5-day Loss notifications are triggered at 225% of the VaR limit
4.	Trading Portfolio limit monitoring reported to the Board
5.	Concentration limit monitoring reported up to the CEO, and at Board meetings
6.	Business Unit and Commodity Group limit monitoring reported up to the Risk Management Committee
7.	Trader/Desk Level Limits and related reporting to be established by each business unit

Overall Portfolio Structure
?	Expanded the Trading Portfolio includes all of Enron's mark-to-market trading activity, including speculative trading of PGE and ETS
?	Merchant Portfolio does not have established limits
?	Clarified that the Capital Portfolio is to capture and manage all positions related to Enron's capital structure; the VaR limit established is a Concentration Limit for Enron stock related transactions; as other positions are captured and measured, additional limits may be established as needed
Added a new "Regulated" Portfolio for certain transportation and distribution activities (a VaR limit was established by the Board for PGE's regulated activities)
?	Added a new "Other Assets & Contracts" Portfolio to capture and manage accrual or other type of positions not otherwise captured in the other Portfolios; no limits established


I just spoke to the state of Arizona concerning the tree removal at Station
2.  Their response to our request to remove the trees has been APPROVED,
provided that this is the only pre activity  we do prior to receiving the air
permit.  This means that no other  construction or preparation activities can
be performed  or conducted untill the air permit has been issued.   This
approval also includes stump removal if need be......

From: Donna Martens/ENRON@enronXgate on 07/18/2001 08:14 AM CDT
To: Larry Campbell/ET&S/Enron@ENRON
cc:

Subject: RE: TWPL Station 2 Timber

Larry -FYI    -Earl mentioned in the conference call that the State may
consider cutting down trees as construction activities and we may need to
hold off until we receive the air permit.

 -----Original Message-----
From:  Campbell, Larry
Sent: Tuesday, July 17, 2001 12:14 PM
To: Gutierrez, Cecil
Cc: McCracken, Mike; Chanley, Earl; Martens, Donna; Martens, Donna; Arnold L
Eisenstein/ENRON_DEVELOPMENT@ENRON
Subject: Re: TWPL Station 2 Timber

HOld off on the tree cutting, till we hear from the state of Arizona.  Under
the regulations of the air permitting, we are not allowed to initiate any
kind of construction activity untill the air permit is received.  Cutting the
trees could be construed as initiating construction.......

Cecil Gutierrez
07/17/2001 10:58 AM
To: Mike McCracken/ET&S/Enron@ENRON
cc: Earl Chanley/ET&S/Enron, Donna Martens/ET&S/Enron, Larry
Campbell/ET&S/Enron@ENRON

Subject: Re: TWPL Station 2 Timber   << OLE Object: StdOleLink >>

hey mike , how are you.
I should be getting a "day/date" from Earl as to when to give the Forest
Service the date(s) for them to schedule their tree cutting.
Ken Jacobs has asked me (TW) for a date/week.  The forest service will then
set up a crew and send them in.  Once the trees are cut, Ken will send me the
Tree Contract and invoice for those trees.

I mentioned this to Donna Marten and Earl in last weeks conference call.


So lets see.  You want me to take time out of my busy schedule so that you
can plan a date with some dude?


thank you dear.

 -----Original Message-----
From: 	Hernandez, Morela
Sent:	Monday, October 15, 2001 11:46 AM
To:	Causholli, Monika
Subject:	Car Insurance

Here's the agent I've talked to. She's really nice :-)
Janette Redou
3642 University
Houston, TX 77005-3360 map </cgi-bin/db2www/agtmap.d2w/report?agt=8389&'reg'=25&st=53>
Phone: (713) 666-3642
Fax: (713) 666-8029
Email: JANETTE.REDOU.LJ3W@STATEFARM.COM  </cgi-bin/agtmail.cgi?email_addr=JANETTE.REDOU.LJ3W@STATEFARM.COM&pref_name=JANETTE&last_name=REDOU>
Office Hours:
Mon-Fri 9:00am to 5:00pm
Sat 9:00am to 1:00pm
After Hours by Appointment
Find a Claim Office </claims/fndoffc.htm>

http://www.statefarm.com/cgi-bin/db2www/agtqry1.d2w/report


FYI.  Appears that the two sides may be crawling toward renegotiation.

Best,
Jeff

Battle lines drawn over long-term power deals
SD Union Tribune, 10.07.01
In a perverse sign that normalcy is returning, the state's power crisis roared back to life last week with the California Public Utilities Commission as the focus.
This time the state utilities commission pulled off a feat few could have anticipated, even from a long-running crisis that has caused blackouts and soaring electricity costs.
In a span of three hours last week, the five-member panel went from being applauded by consumer groups and blasted by industry interests to being vilified by consumer advocates and applauded by business.
Consumer advocates celebrated when the PUC refused to rubber stamp state-negotiated long-term power contracts, a move the governor said stalled the $12.5 billion bond offering needed to cover past power purchases.
But business leaders and the governor cheered the PUC for approving a $3.3 billion rescue of Southern California Edison, which consumer advocates criticized as an unauthorized bailout.
As massive as the Edison deal is, it may be less likely to affect customers of SDG&E than the second reality that emerged last week: Despite the PUC action on the contracts, Californians still face the burden of paying more than $40 billion over the next two decades for overpriced and possibly unneeded electricity.
Or maybe not.
While electricity providers continue to defend the long-term power contracts as fair and key to resolving the state's electricity crisis, consumer groups and others have launched a major offensive to get the contracts revised, renegotiated or canceled.
Critics argue that the deals were negotiated while the state's economy was reeling, blackouts were striking and federal regulators were insisting that the state had to tie up the bulk of its electricity needs through long-term deals.
Duress alleged
Consumer advocates say the long-term contracts bind California to power purchases at more than double current market prices and force the state to buy power it does not need.
"We should not be stuck with these agreements because conditions have changed so dramatically," said Bill Ahern, a senior analyst with Consumers Union, the publisher of Consumer Reports magazine. "We did these agreements under duress, and it is better for the generators and us to negotiate what all believe is a good deal."
Ahern also said an investigation of possible conflicts of interest for at least one member of the state team that negotiated the contracts could lead to their invalidation.
Michael Shames, executive director of the Utility Consumers' Action Network in San Diego, notes that much of the power to be delivered under the agreements will come from new plants yet to be built in California.
"The state has the ability through the siting process to modify those contracts," Shames said. The motivation to do so could grow soon, he added.
"Especially in an election year, the question will be whether elected officials and the public will tolerate the (cost) of these contracts," Shames said.
Shames noted that the Federal Energy Regulatory Commission pressed California to lock up much of its power under long-term contracts, because it argued that excessive reliance on short-term purchases was a major contributor to the power crisis.
Now it appears the cost of that solution could exceed the cost of the short-term crisis, Shames said.
Beyond the growing political pressure, San Diego attorney Michael Aguirre is arguing in appellate court that Gov. Gray Davis overstepped his legal authority by declaring an emergency and signing the long-term agreements in the first place.
He says California's electricity deals violate state law regarding purchasing practices.
"To circumvent that law by calling it an emergency does not pass legal muster," said Aguirre, who is suing electricity providers for overcharging. "There were other means to manage the emergency."
The PUC also says the state locked itself into too much power for too long a period.
"First and foremost, we should try to renegotiate, try to get shorter terms," said Gary Cohen, general counsel for the PUC.
Willingness to deal
At least two major suppliers have indicated a willingness to discuss the matter, Cohen said. The PUC also will continue to press for changes to the agreements with FERC.
The federal commission regulates wholesale power markets and is legally mandated to ensure prices are "just and reasonable." FERC is considering refunds for prices paid by California in spot power markets during the crisis.
Cohen argues that if spot prices are subject to refunds, long-term contracts should be subject to similar relief. The PUC has made several filings pressing this point, but has received no response from FERC.
For his part, the governor declines to call for renegotiation of the contracts.
"In order to renegotiate we would have to have the generator come to us, and they have not done so," said Steve Maviglio, the governor's spokesman. "We would be pleased to sit down and renegotiate. But we have not been approached by anyone."
Some experts believe Davis wants to break the contracts more than he is willing to say, but he must maintain credibility with the providers with whom he signed agreements. The same people speculate that the governor, who blasted the PUC last week for failing to help implement the agreements, may have privately welcomed the commission's action as a step toward revising the agreements.
Power providers, meanwhile, continue to support the agreements.
"The contracts are good for the state and helped stabilize the market," said William Highlander, director of public relations for Calpine Corp.
The San Jose company is the largest provider under the controversial agreements, with some $13 billion in contracts. Calpine hopes to provide much of that power from new plants it is building within California.
Sempra says contract fair
The company has not been approached by the state to revise its agreements, said Highlander, and he declined to say how Calpine would respond to such an overture.
San Diego-based Sempra Energy, another major provider under the agreements, also insists its contracts provide power at fair rates to the state.
Michael Niggli, president of Sempra Energy Resources, said his company will provide power for about 4 to 5 cents per kilowatt hour, based upon current natural gas prices.
"It's pretty tough to say, 'Let's renegotiate the lowest price contract,' " Niggli said.
But V. John White, director of the Center for Energy Efficiency and Renewable Technologies, said Sempra's contract and others lock the state into power that consumers are unlikely to need, and too much of the electricity comes from non-renewable sources.
White says state consumers are being held hostage by some unnecessary posturing.
"There are indications from several generators that a call to renegotiate would be responded to," White said. "The generators say nobody asked us. The governor says nobody has volunteered.
"But the opportunity is there at this moment to renegotiate. Why don't we ask?"
*****************************************************************
State authority buying more power for 2002
Critics say it's too costly, perhaps unnecessary and may be sold off later at a loss
OC Register, 10.07.01
SACRAMENTO -- California's new power agency is rushing to buy more electricity for next summer, even as the state has come under fire for buying too much costly power and then having to sell it at bargain prices.
Moreover, another state agency says the state will have enough power - because of existing contracts and conservation - to get through the hottest of summers next year.
The new power purchases, which are being negotiated by the California Public Power and Financing Authority, could add as much as 3,000 megawatts of power to California - enough for about 2.3 million homes - by June. That would be in addition to the existing $43 billion in long-term agreements the state has already inked with power generators.
Many observers - even those supportive of the power authority's goal to increase cleaner, alternative energy sources in the state - are balking at the agency's rapid pace, saying consumers will end up paying more in the long run.
"We're dumping power and (authority Chairman) David Freeman is buying more power. What's up with that? It's absolutely ludicrous,'' said Harry Snyder, executive director of Consumers' Union, which publishes Consumer Reports.
A draft report by the California Energy Commission shows the state already has plenty of power for next year.
Without the extra power being negotiated by the power authority, even in a very hot summer, the state would have about 6,000 extra megawatts during peak periods, when it needs 63,800 megawatts, about a 9 percent cushion. That is if all power plants came online as expected and residents continued to conserve as they are.
In a normal summer, such as this year's, the state would have 10,000 extra megawatts above the average 59,000 megawatts it needs, roughly a 17 percent surplus.
Power authority officials counter that those surplus figures are estimates that depend on people conserving at the rate they did this summer. "The more we own of our own supply, the more we can control the market,'' said state Treasurer Phil Angelides, an authority board member.
Said Freeman: "We are thinking our way through what we should do for next summer. That why we get paid the big bucks."
New contracts would increase 'green' power
In addition, at least one-third of the new energy the power authority is trying to buy - 1,000 megawatts - would come from solar, wind and other renewable energy providers, officials said.
Such generators were left out when the state signed its initial round of contracts. Bringing on 1,000 more megawatts would increase the portion of the state's energy derived from renewable resources to 13 percent. The long-term goal is 17 percent.
The remaining power purchased under the new contracts, perhaps 2,000 megawatts, would be from so-called "peaker'' plants - less efficient jet-engine-like generators that are turned on only during emergency shortages.
The emphasis on these natural gas plants irks many environmentalists, but proponents of them say these would be a new generation of gas peakers. While not preferable to conventional generating plants, they would pollute less than the peakers currently being pressed into service. If California can build new, more efficient ones, it can retire the old polluting ones, the argument goes.
Nonetheless, critics fear the state, rushing into new negotiations, will leave ratepayers with more expensive power contracts. They note that the authority hasn't completed an assessment on exactly how much power it really needs and what it wants for the state's power portfolio. That assessment won't be done until February.
"I hope they have a basis on which they've determined they need those (3,000) megawatts of contracts,'' said Lenny Goldberg, a lobbyist for The Utility Reform Network, a consumer watchdog group.
Businesses worry new pacts will hurt them
Even the state's businesses are critical.
They believe that the more expensive long-term power there is under state contract, the less likely lawmakers are to businesses go into the open market to buy the cheaper electricity they think they can get there.
Lawmakers, they believe, will want to force businesses to continue to buy power under the contracts they've negotiated because if the businesses were allowed to pull out, residential customers alone would be left paying the higher prices that those contracts dictate.
Lawmakers are reluctant to put any more burdens on the average consumer, who they feel are the unintended victims of a severely flawed deregulation system.
"I would just as soon not see them negotiate any more contracts,'' said Jack Stewart, president of the California Manufacturers and Technology Association.
The state power authority was signed into law in May to build its own plants, help others finance them and compete with the private power companies. Leading the $5 million-a-year agency is Freeman, the former head of the Los Angeles Department of Water and Power and one of Davis' closest advisers during the energy crisis.
The Legislature's auditors are casting a critical eye at the power authority and will hold hearings next month.
"It's not an investigation,'' said Assemblyman Fred Keeley, D-Felton, chairman of the Joint Legislative Audit Committee. But "it's appropriate early and often to review their work in a public venue and have them held accountable for compliance of the law.''
Keeley's committee is looking into the planned purchases and he said he could not yet conclude whether the power authority's actions could help or hurt the state.
Freeman said onlookers have been too quick to criticize the state's work.
"The plain truth is we had blackouts last winter. We did what we could. We kept the rates stable and lights on,'' Freeman said. "Criticism is real easy with the benefit of 20/20 hindsight.''


FERC today issued an Initial Decision in the hearing in the Transwestern case concerning several negotiated rate agreements to which Indicated Shippers and the CPUC had raised objections.  Briefly, the Judge ruled that Transwestern had not exercised market power and that the capacity was advertised and awarded in accordance with Transwestern's tariff.  However, Transwestern must modify its tariff to add a separate provision where all the posting, bidding and award procedures for purposes of awarding capacity are clearly stated.  A highlighted copy of the ruling is attached for your information.