Enron's Net Soars, Despite Telecom Loss, Gaining 40% Amid Strong Energy Units
The Wall Street Journal, 07/13/01

Enron Net Rose 40% in Quarter
The New York Times, 07/13/01

Treasury Prices Climb as More Money Is Shifted To U.S. Bonds on Weakness of
Emerging Markets
The Wall Street Journal, 07/13/01

THE ENERGY CRISIS Some State Energy Consultants Own Generators' Stock Ethics:
They negotiate deals and buy electricity from power firms. GOP officials
claim credit for forcing the disclosure of potential conflict.
Los Angeles Times, 07/13/01

THE ENERGY CRISIS Plan Uses Public in Refund Demand Legislature: Democrats'
proposal to pressure 'greedy' firms is attacked by GOP as political ploy.
Los Angeles Times, 07/13/01

COMPANIES & FINANCE THE AMERICAS - Surging energy sales behind Enron advance.
Financial Times, 07/13/01

Lex - Enron.
Financial Times - FT.com, 07/13/01

UK: Paladin says Enron sells entire stake.
Reuters English News Service, 07/13/01

White House adviser targeted for dealings with Salvation Army
Associated Press Newswires, 07/13/01

UK: Bidder list for Southern Water grows-report.
Reuters English News Service, 07/13/01

DPC not to re-start work on Phase II work
Business Standard, 07/13/01

California Power Bills Exceed Refunds, Judge Says (Update4)
Bloomberg, 07/13/01

California Governor Casts Blame for Crisis, to His Benefit
Bloomberg, 07/13/01

Enron's Net Soars, Despite Telecom Loss, Gaining 40% Amid Strong Energy Units
By Rebecca Smith
Staff Reporter of The Wall Street Journal

07/13/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. posted a 40% increase in second-quarter net income, reflecting
the enormous profitability of its energy marketing and trading enterprise,
which was sufficient to offset wider-than-expected losses at its
telecommunications unit.
The Houston company had net income of $404 million, compared with $289
million a year earlier, on revenue that nearly tripled to $50 billion.
Earnings per share rose 32% to 45 cents from 34 cents.
Enron was lifted by exceptionally strong electricity- and gas-trading
volumes. In North America, natural-gas volumes jumped 9% and
electricity-trading volumes jumped 71%. In Europe, where Enron is pushing
aggressively into newly deregulated markets, trading volumes for gas more
than doubled and for electricity leapt to almost five times those of before.
From practically nothing just two years ago, Europe generates one-quarter of
Enron's energy-trading volumes.
Profits from trading more than compensated for a $101 million loss posted for
the company's telecommunications business that analysts had, until recently,
proclaimed would soon generate more income than Enron's energy business. For
the quarter, bandwidth-service revenue was $16 million. The unit posted a
loss of $8 million for the year-earlier quarter.
Enron's chief executive, Jeffrey Skilling, said prices for capacity on
fiber-optic networks, such as the one Enron has built, have been "dropping
like a rock. . . . We've been shocked at the extent."
Mr. Skilling said the company is trying to boost revenue by focusing on
fiber-optic delivery of data and entertainment -- "a narrow piece of the
business but about all that's left" -- and is hoping the glut in capacity
will evaporate as competitors go broke. He said companies that continue to
invest, despite the "market meltdown," and keep their networks state of the
art will be rewarded eventually.
Enron's results beat analysts' expectations, but several said they fear
softening electricity prices throughout the nation, and particularly in the
West, could crimp third-quarter results. "Enron benefited from unusual price
volatility," during the quarter, said Raymond Niles, an energy analyst for
Salomon Smith Barney. But it is uncertain whether that will continue with a
general softening of natural-gas and electricity prices across the country,
most notably in the West.
Mr. Skilling said he thinks California may have seen the worst of its energy
crisis. He consistently has said he doesn't think Enron's earnings will be
significantly affected by possible refund orders from federal energy
regulators or other regulatory intervention.
He added that Enron was pleased with steps the Federal Energy Regulatory
Commission took this week to encourage the formation of four big
electric-transmission grid operators in the West, the Northeast, the
Southeast and the Midwest.

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

Business/Financial Desk; Section C
Enron Net Rose 40% in Quarter
Bloomberg News

07/13/2001
The New York Times
Page 12, Column 4
c. 2001 New York Times Company

HOUSTON, July 12 -- The Enron Corporation, an energy trader, said today that
its second-quarter profit rose 40 percent as its sales of natural gas and
electricity surged in the United States and Europe.
Net income rose to $404 million, or 45 cents a share, from $289 million, or
34 cents, in the period a year ago, Enron said. Results beat analysts'
estimates by 3 cents a share.
Revenue almost tripled to $50.1 billion. Enron, which is based in Houston,
sold almost twice as much power in North America and five times as much in
Europe than in the quarter a year ago.
Although electricity and natural gas prices surged in California, Jeffrey K.
Skilling, the chief executive of Enron, said the state ''is just not a big
factor'' in Enron's increasing profits. The company bolsters earnings by
increasing sales of energy and other commodities like lumber and steel rather
than by raising prices, analysts said.
''That's the nature of the commodities business,'' said Zach Wagner, an
analyst with Edward Jones & Company. ''As markets open up, their volumes will
grow. Their margins are basically flat.''
Enron's profit margin was less than 1 percent last year and has averaged 2.1
percent the last five years, based on Bloomberg data. That compares with a
profit margin of 6.5 percent for Exxon Mobil, the largest publicly traded
energy company.
Shares of Enron have dropped 31 percent the last year, despite steadily
increasing earnings, and sales that now rival those of Exxon Mobil. Shares of
Enron rose 45 cents today, to $49.55.
Enron was expected to make 42 cents a share in the quarter, the average
estimate of analysts polled by Thomson Financial/First Call.

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

Credit Markets
Treasury Prices Climb as More Money Is Shifted To U.S. Bonds on Weakness of
Emerging Markets
By Michael Mackenzie and Andrew Gelfand
Dow Jones Newswires

07/13/2001
The Wall Street Journal
C12
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Treasury prices closed higher as renewed weakness in emerging
markets prompted investors to shift more money into the U.S. bond market.
It is common for Wall Street traders to bid Treasurys higher when weakness in
other markets seems likely to spur flows into Treasurys, which are viewed as
a haven.
But yesterday's action involved more than just Wall Street firms and provided
substantial support, mostly offsetting the bearish influence of a stock
rally. "Argentina is keeping a good bid in the [Treasury] market," said Peter
Cordrey, managing director at Prudential Investment Management in New Jersey.
Much of the focus again was Argentina, whose long-term sovereign credit
rating yesterday was cut by Standard & Poor's to single-B-minus from
single-B.
S&P said the ratings outlook for Argentina remained negative and cited
"growing strain on the cohesion of the governing coalition and the risk that
it may impede efforts by Economy Minister Domingo Cavallo to implement
draconian measures to balance the federal budget."
That country is "just looking worse and worse every time you turn around,"
said Drew Matus, market economist with Lehman Brothers in New York.
Despite indications that Argentine officials are trying to win agreement on
spending cuts, investors remained nervous about the nation's ability to
service its large external debt burden. Prices of Argentine floating-rate
bonds fell about 103/8 points to 623/8.
In U.S. Treasury trading, meanwhile, the benchmark 10-year note at 4 p.m. EDT
was up 8/32 point, or $2.50 per $1,000 face value, at 98 6/32. Its yield fell
to 5.242% from 5.276% late Wednesday, as yields move inversely to prices.
The 30-year Treasury bond's price was up 14/32 at 96 1/32 to yield 5.652%,
down from 5.684% Wednesday.
Shorter Treasury maturities preformed less strongly than longer ones, and
analysts cited gains in stocks as a reason.
The Dow Jones Industrial Average surged 237.97 points to 10478.99, and the
Nasdaq Composite Index jumped 103.70 points to 2,075.74. Treasurys are being
"pulled in two directions, and the stock market is winning in the [short]
end," said Richard Gilhooly, senior bond strategist at Paribas Capital
Markets in New York.
Another factor bolstering Treasurys was economic news. In two early releases,
the Labor Department reported both a huge rise in claims for state
unemployment benefits and slightly lower prices for imported goods.
The number of workers filing first-time applications for jobless benefits
jumped by 42,000 to 445,000 in the week ended July 7, the highest level since
about mid-1992. That raised the four-week moving average to 410,750 claims.
Today, two other economic reports may dominate the attention of bond
investors: the producer price index and retail sales, both for June.
A Dow Jones Newswires/CNBC survey found that economists believe the PPI was
unchanged in June and will show a slight 0.1% increase in the month excluding
food and energy. "The friendly inflation news should help to keep a bid in
long [dated] Treasurys," said Gemma Wright, a bond-market strategist at
Barclays Capital in New York.
A separate Dow Jones Newswires poll found that economists expect to see a
0.3% rise in overall retail sales in June, or a 0.2% sales gain excluding
automobiles.
Corporate Bonds
Marlin Water Trust II sold $475 million and 515 million euros ($439 million)
of securities via Credit Suisse First Boston and Deutsche Banc Alex. Brown.
In 1998, Enron Corp. created a special-purpose entity, to finance the
purchase of water utility Wessex Water PLC of the United Kingdom. Yesterday's
issue was a refinancing of that debt, but was done in a way that keeps the
debt off Enron's balance sheet, underwriting officials said.
The U.S. portion of the deal was priced to yield 6.31%, or 2.25 percentage
points over Treasurys. In early trading, it was quoted at 2.25 percentage
points over Treasurys, which was "reasonably positive on a day when the
corporate market was so jittery," said Stephen Kane, portfolio manager at
Metropolitan West Asset Management.
Generally, investment-grade corporate bonds weakened on concerns about
emerging markets. Yield margins to Treasurys, an important performance gauge,
widened by 0.05 to 0.10 percentage point.
Separately, Citigroup Inc. tapped the market with $2 billion of two-year
global floating-rate notes priced to yield 0.09 percentage point over
three-month London interbank offered rate, or Libor.
Agency Securities
Fannie Mae sold $2.5 billion of callable benchmark securities, which traded
strongly afterward.
Its $1.5 billion of 5.5%, five-year notes yielded 5.5657%, or 0.05 percentage
point over the Fannie Mae benchmark level on an option-adjusted spread basis.
An additional $1 billion of 6.25%, 10-year notes yielded 6.408%, or 0.03
percentage point over the Fannie Mae benchmark level on an option-adjusted
basis.
Scott Graham, head of agency trading at Greenwich Capital Markets, said his
company saw "a number of customers" who don't typically consider callable
issues, but were nonetheless looking to buy some of the new securities.
---
Sonja Ryst, Richard A. Bravo and Tyler Lifton contributed to this article.

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

California; Metro Desk
THE ENERGY CRISIS Some State Energy Consultants Own Generators' Stock Ethics:
They negotiate deals and buy electricity from power firms. GOP officials
claim credit for forcing the disclosure of potential conflict.
ERIC BAILEY
TIMES STAFF WRITER

07/13/2001
Los Angeles Times
Home Edition
B-10
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- More than half a dozen consultants hired by the state to
purchase electricity and to negotiate long-term power deals own stock in
generating companies such as Calpine and Enron that have profited handsomely
during California's energy crisis.
The potential conflict of interest emerged Thursday with the release of
financial disclosure statements by consultants who have been hired by the
state since the start of the power crunch.
Among those disclosing stock ownership were two key negotiators of long-term
energy contracts and two workers hired to purchase electricity from
generators, including some of the firms in which they hold an interest.
Several other consultants who played key roles in the state's energy efforts
decided not to file financial disclosure statements, citing legal exemptions
under state law.
Among those who did not file the financial disclosure statements were a pair
of executives at two Wall Street firms that stand to make $14 million if the
state buys California's power grid. Of about 50 consultants hired by the
state in the past six months, 27 filed the disclosures.
The disclosures follow a firestorm in Sacramento last month over the hiring
by Gov. Gray Davis of two media consultants also employed by Southern
California Edison, the troubled utility that is negotiating with the state
over a bailout package.
Steve Maviglio, a Davis spokesman, said the governor's legal staff was
reviewing the financial disclosure forms for any potential conflicts of
interest.
"If there's anything inappropriate," Maviglio said, "then we'll deal with
it."
Republicans, however, said the hired workers had revealed overt conflicts
that clearly violated state law.
Secretary of State Bill Jones, a Republican running for governor against
Davis next year, said the revelations call into question the work performed
by the consultants on high-priced energy contracts that are "going to
mortgage our children's future for decades to come."
"If you show a conflict, the potential is there for collusion," Jones said.
"I'm not accusing anyone, but that's why you have disclosure."
Rob Stutzman, a state GOP spokesman, said he was particularly troubled
because the consultants had delayed filing the disclosure forms for months.
Under state law, the forms are supposed to be submitted within 30 days after
the consultants go to work for the state.
Most of the energy consultants, who could not be reached for comment,
reported owning relatively small amounts of stock in energy firms, generally
less than $10,000.
But one of the new workers, William Mead, disclosed that he owned between
$100,000 and$1 million in Calpine, a San Jose-based energy firm. Mead did not
report when the stock had been purchased.
Only one of the contractors reported selling off stock after coming to work
for the state.
Vikram Budhraja, president of Pasadena-based Electric Power Group LLC, on
Jan. 11 purchased between $10,000 and $100,000 in stock of Dynegy, a
electricity and natural gas producer. He sold it off on Jan. 29, 10 days
after he came to work for the state. Budhraja has been a top negotiator of
the state's long-term energy contracts, which have included a deal concluded
March 2 with Dynegy.
Richard Ferreira, a retired Sacramento Utility District executive hired by
the state to negotiate long-term power contracts, reported the purchase of
between $2,000 and $10,000 of stock in Calpine, a San Jose-based energy firm,
in August 2000. He also purchased a similar amount of stock in General
Electric Co., which produces power plant equipment, in April 2000.
Bernard Barretto, an energy trader, reported that he owned an undisclosed
amount of stock in Enron Corp., a big Texas-based energy firm. Elaine Griffin
purchased between $10,000 and $100,000 in Calpine stock on Feb. 1, less than
three weeks before she came to work for the state as an energy trader.
Constantine Louie, an energy scheduler, reported owning between $10,000 and
$100,000 in Calpine stock.
Republicans took credit for forcing the Davis administration to file the
reports, a charge the governor's office brushed aside.
Jones, the secretary of state, held a news conference Tuesday to complain
about the failure of nearly all the state's energy consultants to file any
sort of financial disclosure forms. The statements were only made available
late in the afternoon Thursday, months after many consultants went to work
for the state.
Maviglio, the governor's spokesman, said the delays were explained in part by
negotiations that began in March with the Fair Political Practices
Commission, the state's ethics watchdog, to determine if the consultants were
required to file the forms.
He also suggested that Jones' accusations were fueled more by campaign
politics than any devotion to constitutional duty.
"One needs to question why the secretary of state is using taxpayer money to
investigate something beyond his jurisdiction," Maviglio said. "That's why we
have an FPPC, to look at these kinds of things."

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

California; Metro Desk
THE ENERGY CRISIS Plan Uses Public in Refund Demand Legislature: Democrats'
proposal to pressure 'greedy' firms is attacked by GOP as political ploy.
CARL INGRAM
TIMES STAFF WRITER

07/13/2001
Los Angeles Times
Home Edition
B-10
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- The Democratic-led state Senate intends to fill constituent
mailboxes with a taxpayer-financed appeal urging Californians to demand
nearly $9 billion in energy price refunds from "greedy out-of-state power
generators."
Senate leader John Burton (D-San Francisco) said the mailers will ask
Californians to join the Senate and Gov. Gray Davis in insisting that the
Federal Energy Regulatory Commission order the refunds of alleged overcharges.
Senate Democrats set the high target despite a federal mediator's ruling
against Davis earlier this week. The mediator said California would be
entitled to only about $1 billion in generator overcharges, not the $8.9
billion that Davis has fought for.
Senate officers said the cost of the mail campaign will be paid from the
budgets of senators, at taxpayer expense, as part of the Legislature's
constituent service mail program.
But Republicans attacked the mailer as political propaganda that may violate
state law and Senate policy barring issuance of "partisan" documents at
public expense.
Sketchy details of the quietly developed project surfaced on the Senate floor
Thursday. Staffers who worked on it said it was virtually impossible to
calculate the program's cost.
But they indicated that if all 26 Democrats agreed to send up to 30,000
mailers each to constituents, the postage alone would cost $140,400.
If each mass mailing exceeded 30,000 pieces, a higher postage rate would
apply, raising the cost, officials said.
In the mailer, constituents are asked to return an attached card to their
state senator, urging "full refunds of the outrageous prices charged by the
greedy out-of-state power generators."
Cynthia Lavagetto, manager of the Senate mail program, said each member will
decide what do do with the returned cards, including simply filing them or
sending them on to FERC.
Lavagetto said a prototype mailer was prepared with the help of the Select
Committee on Citizen Participation, a panel that has no chairman or members,
since it has not been activated this year. But it does maintain an office and
has three staffers on the Senate payroll.
Burton dismissed the Republican charges of partisanship as baseless. "We do
this all the time on a variety of issues," he said. "We're saying, 'Stop
stealing California's money.' "
But Sen. Ross Johnson of Irvine, the Senate's senior Republican, denounced
the mailing as clearly partisan. He said it appeared to reflect a developing
2002 election strategy of Davis and Democrats to blame the FERC and
out-of-state generators for California's energy mess.
"I seriously question the appropriateness of using taxpayer money to get
people to lobby [for the refunds]," Johnson said.
Johnson and Sen. Ray Haynes (R-Riverside) suggested that Democrats turn their
criticism to municipal utilities, including the Los Angeles Department of
Water and Power. Some utilities charged the state even higher prices last
winter than did private generators.
"Why are they not attacking the DWP?" Johnson asked.
He noted that S. David Freeman was running the DWP at the time some of its
highest prices were charged to the state, which is buying power for
California's financially crippled utilities. Later, Davis hired Freeman as
his top energy price negotiator.
"Doesn't David Freeman more properly belong in that same jail cell as the guy
called Spike than he does in the governor's office?" Johnson asked.
"Spike" has become a character in the California energy debate, thanks to
Atty. Gen. Bill Lockyer, who is investigating whether power sellers engaged
in price-gouging and antitrust behavior.
In an interview with the Wall Street Journal in May, Lockyer said he would
"love to personally escort [Enron Corp. Chairman Kenneth] Lay to an 8-by-10
cell that he could share with a tattooed dude who says, 'Hi. My name is
Spike, honey.' "

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

COMPANIES & FINANCE THE AMERICAS - Surging energy sales behind Enron advance.
By JULIE EARLE.

07/13/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Enron, the US energy trader, yesterday posted a 40 per cent rise in
second-quarter profits to $404m, due to surging gas and electricity sales in
North America and Europe.
The Houston-based company also said it would continue to grow aggressively in
Europe and seize any opportunities to expand in the US, after regulators on
Wednesday ordered the formation of an organisation to open the North American
electricity market.
Jeff Skilling, Enron chief executive, said the company had its sights set on
Europe for strong earnings growth, which it hopes will eventually match North
America.
The company's wholesale business unit, the group's main profit driver,
derives 70 per cent of its business from North America.
"We see more growth opportunity in Europe than in North America. Gas volumes
are up more than 100 per cent (in the quarter)," Mr Skilling said. "The gas
and electric market in Europe is almost as big as North America and we got an
early start."
Mr Skilling said a decision by the Federal Energy Regulatory Commission to
order the formation of four grid organisations to optimise the transmission
of electricity in parts of the US was hugely important.
He estimated only 20 per cent of the wholesale market for electricity could
be accessed and the decision would take this to 90-95 per cent.
Mr Skilling said Enron, which has transformed itself from a pipeline company
into a large energy trader, was focused on its volumes, not revenues, which
jumped to $50.1bn in the quarter, from $16.9bn a year ago.
The only poor performer was the broadband division, which trades space on
fibre-optic networks. The unit posted a loss of $102m in the quarter, against
an $8m loss a year ago, and the company said it would cut costs there.
Enron's result of $404m, or 45 cents a share, compared with $289m, or 34
cents, in the same quarter a year ago.
Analysts had been expecting 42 cents a share.
By the close in New York, the company's shares were trading 45 cents higher
to $49.55. See Lex.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

Lex - Enron.

07/13/2001
Financial Times - FT.com
(c) 2001 Financial Times Limited . All Rights Reserved

Be careful of the company you keep. Having enjoyed its status as a
telecommunications play last year, Enron is now suffering with its new
friends. The US energy trader has dropped by 40 per cent since the start of
the year - underperforming the market by a third - despite the earnings
momentum in its core energy trading business.
A 40 per cent increase in net income in the second quarter, even allowing for
inevitable questions over earnings quality, is impressive. The strength of
the energy trading business, with volumes up by almost 60 per cent, is more
than enough to offset the misery in the broadband trading business.
However, the broadband division's $102m losses are shocking, even in these
difficult times. The market has collapsed, partly owing to credit problems in
the telecoms sector. Enron's cost base is completely out of kilter with the
opportunity. At least it should not be too hard to put that right. Actual
investment in assets is limited; and by reallocating staff to the
fast-growing energy trading divisions, restructuring costs can be kept to a
minimum.
Broadband is not the only worry. California's troubles have not affected
trading volumes, but regulatory risk remains, while promises on asset sales
have not been met. Trading on 23 times 2002 forecast earnings, the valuation
looks fair for a fast-growing trading company. The upside lies in convincing
investors to give the company more credit for its value-added risk management
services. The long-term potential of broadband trading, meanwhile, is thrown
in for free.
(c) Copyright Financial Times Group.
http://www.ft.com.

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

UK: Paladin says Enron sells entire stake.

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - UK oil and exploration company Paladin Resources
said on Friday that U.S. energy firm Enron had sold the whole of its 19
percent holding.
Enron, which was Paladin's largest shareholder, sold its stake of 40 million
shares at 44 pence via HSBC.
A Paladin spokesman said the move would increase liquidity and broaden its
shareholder base.

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

White House adviser targeted for dealings with Salvation Army
By RON FOURNIER
AP White House Correspondent

07/13/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - Senior White House adviser Karl Rove, increasingly a target
of criticism from Democrats and Republicans, wound up at the center of a new
storm over his dealings with the Salvation Army.
White House aides rallied to his side, and Rove was unapologetic. But
Democratic National Committee chairman Terry McAuliffe called for
congressional hearings.
"I think the truth needs to come out," McAuliffe said Thursday. "Let's have
hearings and get to the bottom of this."
At issue was the Salvation Army's push for a regulation allowing religious
charities to practice workplace discrimination against gays, and Rove's
actions on behalf of the group. Rove said he was simply doing his job.
While McAuliffe called for hearings, Senate Majority Leader Tom Daschle,
D-S.D., seemed less riled. "Karl Rove is a very respected individual and I
wouldn't have any comment to make," Daschle said.
Thursday's flap was not the first for Rove, who oversees politics, strategy
and public liaison at the White House.
When Sen. James Jeffords bolted the GOP and turned the Senate over to
Democrats last month, Republicans accused Rove of alienating the Vermont
lawmaker during the tax-cut debate. He was fingered, too, for not warning
Bush earlier that Jeffords might jump ship.
When Rove sat in White House meetings on policy that could impact his stock
portfolio, Democrats demanded to know whether his holdings with Houston-based
Enron Corp. and Intel Corp. created a conflict of interest.
When Bush crossed some military advisers and suspended Navy bombing on the
Puerto Rican island of Vieques, Rove's involvement in the case was held up as
proof by critics that the decision was politically-motivated.
Rove's involvement in the Salvation Army case has stirred debate in
Republican and Democratic circles about whether he wields too much power and
is too political for the White House.
The White House rejected the Salvation Army's request Wednesday, but only
after the revelation of an embarrassing Salvation Army memo. The memo said
the administration had promised to issue a regulation protecting it and other
religious charities from efforts to prevent such discrimination in exchange
for the Salvation Army's support of Bush's plan to open government programs
to religious groups.
White House officials left the impression that no senior officials were
involved in the discussions, failing to point out Rove's activity until
Thursday.
In a telephone interview, Rove said he recalled having just three or four
brief discussions on the topic. He received a request from a Salvation Army
ally to looked into the rule, sent the ally to the White House faith-based
office, forwarded the written request to a government lawyer and was told
later by the lawyer, "We're not certain there's anything we can do."
The lawyer, Jay Lefkowitz, told reporters the request lay dormant after his
discussion with Rove.
Rove rejected the criticism. "My job is not to say, `Don't send me something
or call me.' My job is to keep my eyes and ears open and send things to the
appropriate departments," he said.
Some top Republicans outside the White House said Rove has become a
lightening rod.
"Part of his role is to be a deflection shield for the president," said GOP
consultant Rich Bond. "Everytime Karl takes a hit, it's one less hit the
president has to take. Karl knows that and he is a big boy."
Aides say the president is not troubled by Rove's actions, even joking about
the controversies.
White House chief of staff Andrew Card also defended Rove.
"I may be naive, but we have no problem of division on the senior level,"
said Card. "I was in the Reagan White House when we had three clear camps ...
We don't have that here."
Aides do acknowledge, however, that there is some resentment of Rove in the
lower ranks of the White House. Some grumbled that Rove did not let White
House press secretary Ari Fleischer know Wednesday about his involvement in
the Salvation Army case. Others, still tired from a tough campaign and
frustrated by their new jobs, said they resent Rove's wide reach.

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

UK: Bidder list for Southern Water grows-report.

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - More potential bidders have emerged that may
challenge Italian utility ENEL for Southern Water, the British regional
utility put up for sale by its parent Scottish Power Plc earlier this year, a
trade magazine reported on Friday.
Utility Week said British gas and homes services retailer Centrica had teamed
up with French utility Vivendi Environnement , which already owns UK water
assets, "to consider a bid".
But it cited unnamed sources saying the German-owned investment bank WestLB
Panmure, which was behind a management buyout of Southern Water's neighbour
Mid Kent Water earlier this year, had "emerged as front-runner in the past
week".
ENEL has said it is interested, and according to Reuters' industry sources
Scottish Power's floor price is 1.7 billion pounds ($2.4 billion) excluding
any attached debt.
Scottish Power said in March the business was for sale.
It needs the cash to help fund its own plans for expansion in the United
States, where industry sources say it has held talks on buying Portland
General, a power utility owned by Enron Corp , which neighbours the UK
group's own PacifiCorp arm.

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

DPC not to re-start work on Phase II work
Our Regional Bureau NEW DELHI

07/13/2001
Business Standard
3
Copyright (c) Business Standard

Enron-promoted Dabhol Power Company (DPC) today said that Enron Corp chairman
Kenneth Lay during his meetings with the Centre and the Maharashtra
government had not agreed to any proposal to complete the construction of
phase-II of the power project.
"Dabhol Power Company believes that a decision to recommence construction
cannot be made unless various issues relating to the project are completely
resolved," DPC said in a statement.
It said that any discussion that Lay had on recommending construction of
phase-II was in the context of the current uncertainties surrounding the
project.
DPC said that contractors working on the project resorted to termination due
to non-payment of their dues as lenders had stopped disbursing funds.
"This decision was taken as a result of continuing defaults by MSEB
(Maharashtra State Electricity Board), including MSEB's repudiation of the
PPA, their failure to pay outstanding invoices and their stated unwillingness
to accept phase-II power, as well as failure of the government guarantors to
honour their payment guarantees," said the statement.
It added that the situation had not changed.

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

California Power Bills Exceed Refunds, Judge Says (Update4)
2001-07-12 21:40 (New York)

California Power Bills Exceed Refunds, Judge Says (Update4)

     (Adds legislator comment in sixth paragraph, details from
judge in 11th paragraph, negotiator comment in 12th paragraph.)

     Washington, July 12 (Bloomberg) -- California's debts to
power sellers for electricity purchases exceed any refund the
state can claim for alleged overcharging, a judge overseeing
settlement talks said in a report to federal regulators.
     California and its utilities may be owed more than $1 billion
on claims generators overcharged them, Administrative Law Judge
Curtis Wagner wrote in a report to the Federal Energy Regulatory
Commission. California alleges power sellers like Duke Energy
Corp., Enron Corp. illegally inflated prices by $8.9 billion.
     ``While there are vast sums due for overcharges, there are
even larger amounts owed to energy sellers'' by California and its
utilities, Wagner wrote. He said the state is owed ``hundreds of
millions of dollars, probably more than a billion dollars.''
     The decision strengthens the generators' claim that the
state's request for billions isn't supported by the facts. Energy
companies have offered a total of $716 million in refunds to the
state, Wagner said.
     FERC-ordered negotiations between the state and the energy
sellers broke down without an agreement this week. FERC will
decide on the size of refunds within 60 days. California Governor
Gray Davis has said the state will sue if it does not receive the
refunds it demanded.
     ``I find it unlikely that someone will not be unhappy enough
to go to court,'' said State Senator Debra Bowen, a Democrat from
Los Angeles. ``There's too much money at stake.''

                         Wagner's Report

     FERC will use Wagner's report to calculate the size of any
refunds. California could receive refunds in the form of credit
against power-buying debts. In his report, Wagner didn't say how
much the state and its utilities owe to power companies.
     ``Can a cash refund be required where a much larger amount is
due the seller? The chief judge thinks not,'' wrote Wagner, who is
FERC's chief administrative law judge.
     Wagner provided suggestions to the FERC commissioners on how
to set any refunds. He urged that they calculate potential
overcharges beginning October 2000. California had urged the
settlement be figured from May 2000.
     Davis criticized that decision, calling it ``a $3 billion
free gouge for the generators'' in a statement released by his
office.
     The judge said California had rejected a settlement offer he
made during the talks. He did not say what that settlement offer
was. He said California would not budge from its initial demand.
He also said California did not provide him some of the background
information he requested until this week.
     ``If we had more time we might have been able to respond more
quickly, but we did the best we could,'' said Michael Kahn,
chairman of the Independent System Operator, the state's electric
grid manager. He led the state delegation.

                    Heart of Dispute

     At the heart of the dispute are federal regulations that
require power sellers to charge only those rates deemed by federal
regulators to be ``just and reasonable.'' FERC had price caps in
place when some of the disputed power purchases were made.
     Energy companies claim that rising natural-gas prices and a
lack of adequate supply pushed prices up. The state accuses the
companies reaping unreasonable profits.
     Davis has made attacks on power generators a staple of his
response to the energy crisis, and has accused them of gouging the
state in dozens of speeches since January. He said that if the
state isn't paid $8.9 billion, it would sue for up to $20 billion.
     Energy executives accuse Davis and California political
leaders of attempting to scapegoat the energy companies for a
failed deregulation plan that led to soaring wholesale prices last
year. The state's largest two utilities can't pay for their power.
     ``It's pretty clear that the state has no particular interest
in resolving this,'' Enron Chief Executive Jeffrey Skilling said
in an interview with Bloomberg News. ``It makes for good political
fodder, and so I think they'll spend a lot of time making a lot of
noise about it.''
     Several other energy companies praised the judge's
recommendations.
     ``We agree with the judge's position that the $8.9 billion
refund number is totally unsubstantiated,'' Duke Energy Corp.
spokesman Tom Williams said.
     PG&E Corp.'s Pacific Gas & Electric and Edison
International's Southern California Edison, the state's largest
investor-owned utilities, ran up more than $14 billion in debt
buying electricity last year. The state stepped in and began
buying power for them in January, and has spent more than $7
billion.

California Governor Casts Blame for Crisis, to His Benefit
2001-07-13 03:03 (New York)

California Governor Casts Blame for Crisis, to His Benefit

     San Francisco, July 13 (Bloomberg) -- California Governor
Gray Davis's popularity is bouncing back, and pollsters credit the
Democratic lawmaker's campaign to blame the state's energy
problems on out-of-state power companies.
     Davis has criticized Duke Energy Corp., Enron Corp. and other
power sellers as price gougers since January. This week, Davis
used a power-plant opening as a platform to claim that energy
sellers are ``bleeding us dry.'' The Democratic state attorney
general and Democratic-controlled state Senate are investigating
the firms for market manipulation.
     The governor is winning support because of his attacks. A Los
Angeles Times poll in June showed that 86 percent of Californians
believed power generators distorted prices. Davis's approval
rating rose to 52 percent of registered voters in June, from 46
percent in early April, his lowest since being elected in 1998,
his pollster, Paul Maslin, found.
     ``Gray Davis is very good at licking his fingers and seeing
which way the political winds blow,'' said Bruce Cain, a political
science professor at the University of California at Berkeley.
``And he's found good villains.''

                    Outlook for Settlement

     The politics may make it harder for the state to reach a
settlement with energy companies for claims they overcharged the
state by $8.9 billion, analysts say. A federal judge overseeing
settlement talks said the state is owed far less. Davis says the
state will sue for $18 billion if its demands aren't met.
     ``There is no way you are going to get any kind of agreement
from someone making such audacious claims,'' said Donato Eassey,
an energy analyst at Merrill Lynch & Co. in Houston.
     The refunds may be secondary to Davis's effort to be re-
elected in 2002, a victory that political analysts say position
him as a contender for national office in 2004.
     ``He's in good shape going into 2002, and if he wins, there's
the inevitable speculation about whether he eyes a run for
president in 2004,'' Cain said.
     Just months ago, Davis's public approval ratings were at
their lowest point since he was elected, according to a Field
Institute poll in April.
     PG&E Corp.'s utility, the state's largest, was in bankruptcy.
Wholesale-power prices were rising, and millions of Californians
lost power in a string of blackouts caused by reduced power
reserves.

                         Governor Rebounds

     The governor was widely criticized for failing to act swiftly
to end the crisis. Now Davis seems to be recovering, analysts
said.
     While vilifying the power companies, the first-term governor
has also been spearheading the state's response to the energy
crisis. He has created a team to negotiate a financial rescue
package to save Edison International's Southern California Edison
utility from bankruptcy, started an $800 energy conservation drive
and pushed for more power plants to be built.
     The energy companies lashed back at Davis this week. A
spokesman for Enron Corp., the world's largest energy trader,
accused Davis and California leaders of conducting a political
``witch hunt.''
     ``The last thing they want to do is take responsibility for
the problem they created,'' Enron spokesman Mark Palmer said.
``They set about looking for the biggest villains.''
     Enron filed suit against a California state Senate committee
investigating allegations of market manipulation, accusing the
panel and its Democratic chairman in a letter of seeking a
``scapegoat'' for a failed deregulation law.

                   Plotting his Response

     Davis began plotting his response to the crisis almost
immediately after it became public in January, said Garry South,
his chief political strategist. Step one, Davis aides said, was to
blame the energy companies that were profiting from the state's
woes. Davis targeted a half-dozen companies. In addition to Enron
and Duke, Mirant Corp., Reliant Energy Inc., and Williams Cos.
were placed in the crosshairs.
     ``There was a group of perpetrators from out of state
manipulating this system and screwing consumers,'' South said.
``We had to explain how this thing happened.''
     Republicans criticize Davis for inaction on the crisis, while
acknowledging he is favored to win re-election going into next
year's campaign.
     He leads three potential rivals -- Secretary of State Bill
Jones, banker William Simon, the son of former Treasury Secretary
William Simon, and former Los Angeles Mayor Richard Riordan,
according to the Times poll of 1,541 state residents conducted
June 23-26.
     ``He will be the favorite,'' said Rob Stutzman, a consultant
for the California Republican Party.

                         Worries Ahead

     Davis still has worries as the state struggles to address the
energy crisis, analysts say.
     PG&E Corp.'s Pacific Gas & Electric filed for bankruptcy in
April. Edison International's Southern California Edison, the No.
2 utility, is struggling to overcome legislative opposition to the
financial-rescue package negotiated by Davis.
     Davis may be blamed, analysts say, if the state Legislature
refuses to ratify the rescue plan for Edison and the utility files
for bankruptcy. Republicans and many Democrats in the Legislature
oppose the agreement, known as a memorandum of understanding.
     ``The MOU's dead, and the likely scenario is for the utility
is to go into bankruptcy,'' said Peter Navarro, an associate
professor of economics and public management at the University of
California at Irvine.
     California voters may receive unpleasant reminders of the
crisis all summer. The state has already suffered through six days
of rolling blackouts, and more are predicted.
     ``As soon as the lights go out, it's Gray's fault,'' Navarro
said.


?
----- Original Message -----
From: Larry Knigge
 - BallotWPBF11.11.00.doc


----- Forwarded by Jeff Dasovich/NA/Enron on 03/30/2001 10:54 AM -----

SoCalGas to Make System Enhancements
Southern California Gas Co. confirmed plans to expand its intrastate gas
transportation system and make enhancements to its storage facilities to help
meet record-setting gas demand by electric generators in Southern California.
SoCalGas Chairman Edwin A. Guiles informed California Public Utilities
Commission President Loretta Lynch of the plans in a March 27 letter.
He said the company had begun modifications to its system that will allow it
to deliver an additional 175 MMcf/d by year end. SoCal's Lad Lorenz told NGI
last week the company was planning to increase receipt point capacity at
Wheeler Ridge where it interconnects with Kern River and Mojave, at the
Needles compressor station where it interconnects with Transwestern Pipeline
and at a receipt point for in-state production in the San Joaquin Valley (see
Daily GPI, March 23
<http://intelligencepress.com/subscribers/daily/news/d20010323g.html>). The
Topock, AZ, border delivery point, which saw the sharpest price increases
this winter, was not among the points slated for expansion because of the
cost of expanding there. The company plans to add 85 MMcf/d of capacity at
Wheeler Ridge, 50 MMcf/d at Needles and 40 MMcf/d for in-state production.
"We are taking immediate action to increase compression horsepower at three
delivery stations to boost the amount of natural gas that can be transported
into The Gas Company's intrastate pipeline system," said Guiles. "In light of
the uncertainties surrounding future demand for natural gas on The Gas
Company's system, these modifications are the least cost way that we can be
assured of meeting the gas demands of all of our customers and avoid any
possibility for curtailments of service." Guiles said the proposed 5%
increase in capacity would be enough to serve another 1.3 million residential
customers per day or to power 1,200 MW of new baseload electric generation.
"The improvements are consistent with SoCalGas' goals of maintaining as much
as 20% more capacity than our requirements for periods of normal demand," he
said.
SoCalGas also is proposing some adjustments to its gas storage operations
that will help increase the in-state supply of natural gas by 24 Bcf - or
enough gas to serve a half million residential customers for one year - over
the next year. It already has on file at the CPUC plans to abandon the
Montebello storage field in Los Angeles County and withdraw the 10-12 Bcf of
base and working gas that remains in the field. In addition, the company is
planning to drill several new wells at its Aliso Canyon and La Goleta storage
fields in order to remove 14 Bcf of base gas, split evenly between the two
fields, and sell it into the market. The reduction in base gas is expected to
have no impact on the amount of working gas capacity available in each field.
Because of strong gas demand last summer, the levels of natural gas at the
company's underground storage reservoirs reached near historic lows this
winter. The LDC is encouraging non-core shippers to get a head start on
storage injections this year because it expects demand to remain strong in
2001.
"Our goal for this year is to have no curtailments of gas service to our
customers, but we need to maximize the use of our existing intrastate
capacity in order to reach our goal," said Guiles. "We're telling our large
industrial and electric generation customers that the best way that they can
avoid curtailments next winter is to make full use of the available pipeline
space and put natural gas in storage whenever possible, particularly during
the second quarter of this year.
"I believe that, if undertaken, these proposals will have a positive impact
on reliability next winter," said Guiles.


Stinson,

No problem.

Vince

Stinson Gibner
07/12/2000 11:26 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Giuseppe cell phone

Vince,

Can I loan to Giuseppe my cell phone for the summer?

Stinson

---------------------- Forwarded by Stinson Gibner/HOU/ECT on 07/12/2000
11:25 AM ---------------------------
From: Samer Takriti@ENRON COMMUNICATIONS on 06/28/2000 10:49 AM
To: Stinson Gibner/HOU/ECT@ECT@ENRON
cc:
Subject: Re: Bandwidth Trading Feature Set

I will be on the call. I may disconnect around 4:00 to attend the traders'
daily meeting.
A couple of issues:
1. Would it be possible to get Gappy a cell phone for the summer? He does not
have a phone at home. I think the reason for avoiding installing a phone in
his apartment is the increasing cost of his Houston stay.
2. It is getting noisier here. Gappy and I are wandering if we could get
office space downstairs (that we share). We will maintain presence on 44, but
we will be able to discuss when needed.
-Samer


it just goes to show you, GOD is a first a Husker fan, then a Notre Dame fan!!!!!!!

-----Original Message-----
From: Lmfoust@aol.com [mailto:Lmfoust@aol.com]
Sent: Tuesday, December 11, 2001 5:10 PM
To: khyatt@enron.com
Subject: Re: NYTimes.com Article: B.C.S. Formula Works Just Fine

If you are a Nebraska fan! That Colorado loss was a huge flogging. Only Nebraska STILL makes it to the best bowl. The computers love you


Start Date: 4/24/01; HourAhead hour: 14;  No ancillary schedules awarded.
Variances detected.
Variances detected in Generation schedule.
Variances detected in SC Trades schedule.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042414.txt

---- Generation Schedule ----
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 14 / Preferred:   0.00 / Final:   0.00)
  TRANS_TYPE: FINAL
  SC_ID: EES
  MKT_TYPE: 2
  TRANS_DATE: 4/24/01
  UNIT_ID: BADLND_7_PL1X2

---- SC Trades Schedule ----
$$$ Variance found in table tblInt_Interchange.
     Details: (Hour: 14 / Preferred: -600.00 / Final: -595.03)
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/24/01
  TRADING_SC: NES1
  PNT_OF_INTRC: SP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 1
  DEAL_NO: 1

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 14 / Preferred:   2.38 / Final:   1.88)
  TRANS_TYPE: FINAL
  LOAD_ID: PGE4
  MKT_TYPE: 2
  TRANS_DATE: 4/24/01
  SC_ID: EPMI
$$$ Variance found in table tblLoads.
     Details: (Hour: 14 / Preferred: 134.45 / Final: 129.51)
  TRANS_TYPE: FINAL
  LOAD_ID: SDG1
  MKT_TYPE: 2
  TRANS_DATE: 4/24/01
  SC_ID: EPMI


Attached for your information is a summary of several recent SoCalGas advice letters.  AL2837-A, which describe the new internal receipt point operating procedures that SoCalGas is implementing, may be of interest to your gas marketing folks.  Have a good weekend!

Dan

Law Offices of Daniel W. Douglass
5959 Topanga Canyon Blvd.  Suite 244
Woodland Hills, CA 91367
Tel:   (818) 596-2201
Fax:  (818) 346-6502
douglass@energyattorney.com


great, thanks for the information.  Also, you and everyone else in your group did a nice job coordinating the
process.

-----Original Message-----
From: Buckley, Karen
Sent: Monday, November 05, 2001 12:10 PM
To: Neal, Scott
Subject: RE: Trading Track offers

Yes, these are additional people who will join the TT, as per my conversation with lavo this am.

Thx karen
Karen Buckley

-----Original Message-----
From: Neal, Scott <Scott.Neal@ENRON.com>
To: Buckley, Karen <Karen.Buckley@ENRON.com>
Sent: Mon Nov 05 11:56:26 2001
Subject: RE: Trading Track offers

Will the people with asterisks be receiving offers?  just curious.

	 -----Original Message-----
	From: 	Buckley, Karen
	Sent:	Monday, November 05, 2001 10:15 AM
	To:	Suarez, John; Cuilla, Martin; Schwieger, Jim; Brawner, Sandra F.; Carson, Mike; Zipper, Andy; Maggi, Mike; Presto, Kevin M.; May, Larry; Sturm, Fletcher J.; Ermis, Frank; Allen, Phillip K.; Arora, Harry; Forney, John M.; Mckay, Jonathan; Neal, Scott; Mckay, Brad; Shively, Hunter S.; Lewis, Andrew H.; Davis, Mark Dana; Arnold, John; Holst, Keith; Grigsby, Mike; King, Jeff; Benson, Robert; Gilbert-smith, Doug; Martin, Thomas A.; Bass, Eric; Keavey, Peter F.; Ruscitti, Kevin; Storey, Geoff
	Cc:	Lavorato, John; Kitchen, Louise
	Subject:	Trading Track offers

	All,

	The below is the confirmed list of those who will be extended offers to join the ENA Trading Track.   Thanks for your particpation in this recruiting event.

	Rgds, Karen.

	External: (4)

	Fred Baloutch
	Jeffrey Zaun
	Eric Moncada
	Gabriel Weinart

	Internal: (14)
	Brent Dornier
	Carrie Larkworthy
	Gary Linhart
	Geroge Huan
	Giron Gustavo
	Jason Huang*
	Jason Jennaro
	Jozef Lieskovsky
	Leonidas Saavas*
	Mason Hamlin
	Peter Bennett
	Rahul Seksaria
	Scott Freeman*
	Steve Pan

	*additional offers


There are increasing requests for IT development resources for databases and
websites within the group.  There are two issues involved regarding this
activity:  Enron Networks is now charging for such development, and the
production of these many and various projects leads to high maintenance needs
and projects are often abandoned after short use.

If you need a new database, it should be developed in one of the desktop
applications that everyone has - Word, Excel or Access. Such
documents/databases can be shared on the O: Common/Public Affairs drive.  If
your needs are more complex than these applications will support, or if your
needs are more global, an effort should be made to fit the data into the
Project Tracking database.  Contact Elizabeth Linnell for this global
database.

Products/information to be published to the intranet should be placed on the
existing Public Affairs intranet site. Having multiple sites is confusing to
our customers and an ineffective use of resources, as well as expensive to
develop and maintain.  Contact Earlene O'Connell regarding additions to the
website.


FYI------Guadalupe had a plant go down today 2/27, and therefore had to get
some gas off Oasis, so they took all 40.0 from AEC back into the Aquila
Header, so I moved the deals to reflect this on WGR (Aquila Header ).
Guadalupe deals:  594527 & 578932.

They said there is a chance they will have to do it again tomorrow.

Let me know if you have any questions.

Mark


i told you he would.  it wont be easy, but for a year you would learn a lot.


Glenda,
Hope everything is going well for you guys.  I just wanted to take a minute
and thank you for the easter  gift you sent Jackson.  It was very
thoughtful.  He has enjoyed coloring the book and everything else he can get
his hands on.  He also ate all of the chocolate as fast as he could.  He is
getting really big and really independent.  We are headed to Jazz fest this
weekend in New Orleans, I am sure he will really enjoy it this year.  Take
care and we will talk to you soon.  Thanks again.
Love,
Jackson, Ashley & Phillip


TASK ASSIGNMENT

Status:		completed

Task Priority:		1
Task Due On:		3/7/2000
Task Start Date:	3/7/2000


Tracy:

Please expedite review and payment of the attached.

Thanks in advance,

George

 -----Original Message-----
From: 	Apollo, Beth
Sent:	Friday, January 04, 2002 2:45 PM
To:	Wasaff, George
Cc:	O'Neil, Murray P.; Beck, Sally
Subject:	Murray O'Neil's expenses

George -

This note is to confirm that Murray O'Neil's latest expense report (roughly $2,000) was for valid,  POST-petition business.  He travels from Portland where he is based, to Houston, as needed, to work on Power settlements and volume management for EES, and these expenses are for airfare, hotel and meals for the week prior to the Christmas holiday.  Per our discussion, I assume that these were held up by the system due to the $5,000 limitation, for further review.

Please have a member of your team expedite the review of this expense report, so that it can be released today, if possible.  I assume that they will confirm to us that the report has been released so that Murray will no longer be behind in his expense reimbursements, since he will be traveling to Houston again (and therefore incurring expenses) on Monday.

I understand that Enron is not issuing cash advances, but that once the initial backlog of expense processing is done, that reimbursement will occur much more quickly, now that we are in the post-petition environment.

Thanks so much,

Beth


fyi...
---------------------- Forwarded by Karen Denne/Corp/Enron on 12/07/2000
12:26 PM ---------------------------

"sandra" <SYamane@marathon-com.com> on 12/07/2000 11:55:00 AM
Please respond to "Sandra Yamane" <SYamane@marathon-com.com>
To: <karen.denne@enron.com>, Windows@marathon-com.com
cc:

Subject: Overload-Why the state can't keep up with the demand for energy
--even in Decem

 - Overload-Why the state can't keep up with the demand for energy --even in
December.htm


Note: Transactions are in pairs, therefore the number of gas transactions for Mar 21 is 6 etc.


-----Original Message-----
From: 	Perry, Warren
Sent:	Thursday, November 15, 2001 8:28 AM
To:	Green, Tracey
Subject:	FW: Houston Chronicle FYI

Nov. 14, 2001, 9:45PM
Move to a leaner Enron
Enron has divided its business units into three categories: core businesses it plans to keep; noncore, which are for sale; and under review, ones it may sell.
All core businesses are expected to be retained, while noncore businesses, which include about $8 billion in assets, will be sold or spun off over the next year. Those businesses under review are those that the company says have good earnings potential, but it's not yet clear if they will stay.
Keepers:
Natural gas pipelines
Gas and electricity trading operations in North America and Europe
Retail operations in North America and Europe
Coal trading operations
For sale:
Broadband Services, including:
? Internet bandwidth trading
? Online data storage products
? Semiconductor trading
? Media Services, including TV ad time trading
? Voice data trading
? Digital Content Services (DCS)
Global Assets, including:
? Elektro, an electric utility in Brazil
? Dabhol, a power plant in India
? TGS, a natural gas pipeline in Argentina
? Azurix, an international water company
? Enron Wind operations
Possible sales:
Enron Global Markets operations, including:
? Commodity trading in crude and related products
? Weather derivatives
? Freight markets
? Foreign currency exchange
? Agricultural products, including fertilizer
Enron Industrial Markets
? Pulp and paper, lumber trading
? Steel industry services.
? Plastics
? Emissions trading

Barbara Cain
ENRON Global Markets
Liquids Settlements
barbara.cain@enron.com - Email
(713) 345-3336 phone
(713) 853-1893 fax


Did Stan make the call to FERC, I wonder.


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

----- Forwarded by Debra Perlingiere/HOU/ECT on 05/30/2001 03:40 PM -----

	Judy Thorne/ENRON@enronXgate
	05/30/2001 08:37 AM

		 To: carol_wilson@oxy.com@SMTP@enronXgate
		 cc: Debra Perlingiere/HOU/ECT@ECT, Judy Thorne/ENRON@enronXgate
		 Subject: Oxy GISB

Carol,

Per John Grass, I am forwarding for your review the attached sample of Enron
Upstream Company, LLC's GISB.   Please do not hesitate to give me a call with
any questions you may have regarding the enclosed.

Thanks,
Judy Thorne
ENA Upstream Company, LLC


I will be out of the office September 18-19,2000 and will return Wednesday
September 20, 2000.  If you should need anything in the mean time please call
Sheila Walton at X30649 or the HR assistant Ramona Perkins at X58165.


These are the sites Mary had record of.
----- Forwarded by Brenda Whitehead/HOU/ECT on 07/17/2000 10:44 AM -----

	Mary J Heinitz
	07/17/2000 10:40 AM

		 To: Brenda Whitehead/HOU/ECT@ECT
		 cc:
		 Subject: CLE Seminars

----- Forwarded by Mary J Heinitz/HOU/ECT on 07/17/00 10:40 AM -----

	Becky Tlucek
	05/16/00 10:42 AM

		 To: Alan Aronowitz/HOU/ECT@ECT, Roger Balog/HOU/ECT@ECT, Peggy
Banczak/HOU/ECT@ECT, Sandi M Braband/HOU/ECT@ECT, Teresa G
Bushman/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT,
Shonnie Daniel/HOU/ECT@ECT, Peter del Vecchio/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Shawna Flynn/HOU/ECT@ECT, Chris Gaffney/HOU/ECT@ECT,
Barbara N Gray/HOU/ECT@ECT, Wayne Gresham/HOU/ECT@ECT, Mark E
Haedicke/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT, Dan J Hyvl/HOU/ECT@ECT, Anne
C Koehler/HOU/ECT@ECT, Dan Lyons/HOU/ECT@ECT, Travis McCullough/HOU/ECT@ECT,
Lisa Mellencamp/HOU/ECT@ECT, Janet H Moore/HOU/ECT@ECT, Janice R
Moore/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT, Gerald Nemec/HOU/ECT@ECT, David
Portz/HOU/ECT@ECT, Michael A Robison/HOU/ECT@ECT, Elizabeth
Sager/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, Lance
Schuler-Legal/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Shari
Stack/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT, Lou Stoler/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Steve Van Hooser/HOU/ECT@ECT,
Ann Elizabeth White/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT, Barton
Clark/HOU/ECT@ECT, Bob Carter/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT,
Martin W Penkwitz/NA/Enron@Enron, Jason Peters/Corp/Enron@Enron, James
Grace/Corp/Enron@ENRON, Kay Mann/Corp/Enron@Enron, John
Viverito/Corp/Enron@Enron
		 cc: Joya Davis/HOU/ECT@ECT, Chaundra Woods/HOU/ECT@ECT, Kaye
Ellis/HOU/ECT@ECT, Pat Radford/HOU/ECT@ECT, Sheri L Cromwell/HOU/ECT@ECT,
Twanda Sweet/HOU/ECT@ECT, Brenda Whitehead/HOU/ECT@ECT, Jenny
Helton/HOU/ECT@ect, Linda J Noske/HOU/ECT@ECT, Linda J Simmons/HOU/ECT@ECT,
Dina Snow/Corp/Enron@Enron, Erica Braden/HOU/ECT@ECT, Janette
Elbertson/HOU/ECT@ECT, Carolyn George/Corp/Enron@ENRON, Suzanne
Adams/HOU/ECT@ECT, Taffy Milligan/HOU/ECT@ECT, (bcc: Mary J Heinitz/HOU/ECT)
		 Subject: CLE Seminars

I am sure you'all have all the CLE you probably need, but just in case you do
not, there is an easy way to catch up!  You can earn CLE credits through
several websites on the internet!  The advantage of this is that all you need
is a computer with an internet connection.  You can "attend" when you want,
24 hours a day, from your home or the office!   Some will allow you to log
your time which enables you to break away from the "seminar" to finish at a
later time.   There is a fee in most cases.  You can register on-line or by
phone, and can charge it to your credit card with either registration
method.

The websites I know about are listed below.  There are probably more if you
do an internet search for "CLE".

http://www.texasbarcle.com
http://www.abanet.org/cle/clenow/
http://www.cle.com
http://www.law.legalseminars.com
http://www.cle-net.edu
http:/www.cleonline.com

The first two listed are on the Texas Bar and American Bar Associations'
websites.


Jim

My feeling is that FERC is not going to change its RTO plans because of this possible interference from the Texas PUC

A possible scenario is SPP to ask permission to continue the implemantation of a new settlement and congestion management system. A good point for internal discussion is: To what extent  we want to oppose to those changes ? (which seem to be aligned to our recommendations, but those may imply additional SPP resources)

Christi - What do you think?

 -----Original Message-----
From: 	Steffes, James D.
Sent:	Wednesday, October 24, 2001 4:04 PM
To:	Maurer, Luiz; Nicolay, Christi L.; Ryall, Jean
Subject:	RE: Texas Comission supports prompt implementation of SPP

Luiz -

I would like to schedule a phone call with Nick and the PUCT staff to understand the implication of this...  Maybe he isn't asking for too much, but let's get some clarity before we say anything at FERC.

Can you please set something up with you, Christi, Jean and me for Friday pm and then we'll go outside next week??

Jim

 -----Original Message-----
From: 	Maurer, Luiz
Sent:	Wednesday, October 24, 2001 2:00 PM
To:	Steffes, James D.
Subject:	Texas Comission supports prompt implementation of SPP

Jim

You were right. SPP is going to use this episode as a lever to be "promoted" to an RTO.

Texas is recommending three steps to introduce competition at Texas-SPP. One is described as follows:

*	Support the SPP's efforts to begin wholesale market operations: Mr. Brown, Vice President of SPP, testified that SPP can begin wholesale market operations and complete systems testing by April 1, 2002. He has requested that the SPP Board approve his recommendation to start to wholesale market operations. This Commission should support that process by:

-	Requesting in writing that the SPP Board begin wholesale operations as soon as possible with a target date of completing systems testing by April 1, 2002.
-	Advising FERC of the need to support SPP wholesale market operations. While Mr. Brown testified that the recent July and September Federal Energy Regulatory Commission (FERC) orders regarding SPP's start up expenditures will not impede SPP from implementing wholesale market operations, this Commission should advise FERC that the findings from our hearing show the need for FERC to fully support SPP wholesale operations startup.


I forgot to attach the program file. Here it is

-chonawee

---------------------- Forwarded by Chonawee Supatgiat/Corp/Enron on
10/17/2000 09:13 PM ---------------------------

Chonawee Supatgiat
10/17/2000 09:13 PM
To: Mike A Roberts/HOU/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT

Subject: program

Mike,
Here is third version of the program. It gives better results than the
previous versions you have. Sorry for the delay, these past 2 days I have
been busy meeting with people on the new EBS project. I think the result
looks reasonably good. You can try it. (To run, type cow filename.jpg m)

smallcow.jpg : hand count 165, program reports 140
cow2.jpg : hand count 1, program reports 1
cow3.jpg : hand count 273, program reports 244
cow4.jpg : hand count 7, program reports 7
cow5.jpg : hand count 160-180, program reports 165
-chonawee

You can show it to the others by yourself or I can go with you. I will have
to go to German Consulate tomorrow morning and will be in the office around
10:30-11am.
-Chonawee


give me all the details later.....


Good morning, Rod.

I wanted to forward my resume to you for review.  If I find myself in need of a new position, you will hopefully have an idea of where I can be most beneficial in your group...that is if you have something available.  Thanks for your help.

Tracey

PS> Consider this favor in lieu of a PRC review :)


---------------------- Forwarded by Matthew Lenhart/HOU/ECT on 08/14/2000
10:02 AM ---------------------------

"Marcantel MM (Mitch)" <MMMarcantel@equiva.com> on 08/14/2000 08:38:36 AM
To: "'Chad.Landry@enron.com'" <Chad.Landry@enron.com>,
"'Matthew.Lenhart@enron.com'" <Matthew.Lenhart@enron.com>
cc:

Subject: FW: Booty Call Agreement

Ice!

THE PRE-BOOTY CALL AGREEMENT
>>> > This pre-booty call agreement (hereinafter referred to as the
>>>"Agreement")
>>> > is
>>> > entered into on the _____ day of __________, 2000, by
>>> > _______________________, between ____________ and ______________.
>>>THIS AGREEMENT SHALL COVER THE FOLLOWING RULES AND PRINCIPLES:
>>>1. No sleeping over -- unless it is very good and we need to repeat
>>> it in the morning.
>>>
>>>2. No meeting in public except for dinner or drinks before the
>>> events of the evening.
>>>
>>>3. No calls before 9 PM -- we don't have shit to talk about.
>>>
>>>4. None of that "lovemaking" shit -- only mind-blowing sex allowed.
>>>
>>>5. No emotional discussions -- Ex.: Where are we heading with this?
>>> Do you love me? The answer is no, so don't ask.
>>>
>>>6. No plans made in advance -- that is why you are called the
>>> "backup," unless you are from out-of-town, then it's only a one-
>>>time advanced arrangement.
>>>
>>>7. All gifts excepted -- money is always good.
>>>
>>>8. No baby talk -- however, dirty talk is encouraged.
>>>
>>>9. No asking for comparisons with former lovers -- it's really none
>>> of your damn business.
>>>
>>>10. No calling each other "friends with privileges" -- we are not
>>> friends, just sex buddies.
>>>
>>>11. Calling out the wrong name during sex is OK -- don't be
>>> offended.
>>>
>>>12. No extra clothing -- I don't want your ass leaving anything
>>> behind when you leave.
>>>
>>>13. No falling asleep right after sex -- it's over, so get your ass
>>> up and go home.
>>>
>>>14. Don't be offended if I don't ask if you enjoyed it -- I don't
>>> care.
>>>
>>>15. You cannot borrow my car for any reason.
>>>
>>>16. If anyone asks who you are, the standard response will be: "My
>>> roommate's girlfriend/boyfriend."
>>>
>>>17. Doggie style preferred -- just hit it hard and right or get the
>>> hell out!
>>>
>>>18. Reason for doggie style: the less eye contact the better. I
>>> don't want to look at you, just fuck you.
>>>
>>>19. We hook up absolutely whenever the mood strikes ME -- so don't
>>> keep calling.
>>>
>>>20. The most important one -- no condoms, no fucking. Carry your ass
>>> home.
>>>
>>>21. Bring your own drink -- I am not your liquor store.
>>>
>>>22. No phone use, please -- don't want anyone calling back looking
>>> for your ass.
>>>
>>>
>>> *** EXTRA TIP FOR SUCCESSFUL BOOTY CALLS***
>>>
>>> The aforementioned rules may only be altered by the holder of
>>> the agreement. If the other party attempts to change or alter any
>>> terms of this Agreement, it will automatically become null
>>> and void and you will then be removed from the BOOTY CALL LIST and
>>> deleted from phone memory and email list. BLOCKED from all
>>> communications until your silly ass understands the rules.
>>>
>>> Participating Party Signature_______________________________________
>>> Date:________________
>>>
>>> Participating Party Signature_______________________________________
>>> Date:________________


No comment.
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/19/2001 07:03
AM ---------------------------

Ann Elizabeth White@ECT
04/18/2001 06:56 PM
To: Roseann Engeldorf/ENRON@enronXgate @ ENRON
cc: Herman Manis/ENRON@enronXgate@ENRON, Lisa Bills/ENRON@enronXgate@ENRON,
Barbara Gray, Ben Jacoby, Steven Krimsky/Corp/Enron@Enron, Kay
Mann/Corp/Enron@Enron

Subject: Re: MOA - Pompano Beach

After our meeting, Ben asked me to please delete the phrase "or its
designee"  from this draft and, with the assignment language (Section 14), I
thought it was clear that there could be a designee (or assignee) if PBEC
desired in its sole and absolute discretion.

I've also spoken to Herman about his concern that I didn't put in an
additional Whereas statement that specifically stated that this agreement is
not a binding obligation on PBEC's part to build the facility or incur any of
the fees addressed. Ben and I also discussed this and I had hoped that adding
a Whereas Clause that says "PBEC desires to construct the Facility if it
receives all requisite local, city, county, state or federal approvals for
development and construction thereof" made it clearly contingent and that,
coupled with broad assignment and termination language, would suffice.  As
Barbara specifically pointed out at our meeting, the agreement is in fact a
binding agreement but the obligations under the agreement are not binding
until the conditions subsequent have occurred (being the commencement of
construction) and the events of commencement of construction are entirely
within PBEC's control.

I guess I'm not clear as to what the  concern is for adding the word
"designee" when the agreement says PBEC has the sole and absolute right to
assign to another party, without the City's consent and, if we elect to not
build the facility or the agreement otherwise terminates, PBEC is relieved of
all obligations under the agreement, which is what is provided for in Section
16.d.  I would think that the broad rights of assignment and the absolute
release are stronger than just adding the word "designee" in the definition
of PBEC.

From: Roseann Engeldorf/ENRON@enronXgate on 04/18/2001 05:42 PM
To: Ann Elizabeth White/HOU/ECT@ECT
cc: Herman Manis/ENRON@enronXgate, Lisa Bills/ENRON@enronXgate
Subject: MOA - Pompano Beach

Ann Elizabeth - I have reviewed the latest draft - is there any reason why we
can't add the phrase "or its designee" in the definition of "PBEC"?  Although
I understand you have included a broad assignment provision, it helps to
include "designee" language to show our compliance with the facility
structure.

Thanks,

Rose


-----Original Message-----
From: "clayton vernon" <cvernon@houston.rr.com>@ENRON
Sent: Sat 12/8/2001 1:32 AM
To: Lavorato, John
Cc:
Subject: $5 million for 90 days?- how quaint!

You demanded the shareholders pay you $5 million to  "suffer" at Enron for another 90 days???. Poor, poor John. Oh, the horror of it  all!


Here's the presentation.  I've discussed it with Jeff and Mona.


Teammates, It is obviously a good idea if I am kept in the loop  about what
is going on with respect to any of the brokerage account projects and
assignments or we figure out a way to clarify the recurring confusion on who
is working on what or what the status of the projects are.   In the meeting
yesterday Stephanie, you stated that you had not gotten any feedback on this
project yet and therefore had not started any of the tasks.  But now you are
saying that everything is done and Sara has reviewed it.  When did that
happen and why did you not send it to me to review?   Did I miss something?
Have any other of our plans with respect to this project changed?

I suggest that at our next meeting we set aside time for everyone to discuss
any concerns or -- quite frankly frustrations -- any of us have about working
on this project along with suggestions on how to better accomplish our goals.

Cheryl Nelson
Senior Counsel
EB3880D
(713) 345-4693

	Stephanie Panus
	02/27/2001 09:36 AM

		 To: Cheryl Nelson/NA/Enron@Enron
		 cc: Samantha Boyd/NA/Enron@Enron
		 Subject: Re: Urgent Task List for Enron Credit Inc. - Assignment of Accounts

Cheryl,
Per your attached memo, I thought that you were working on the Prime
Agreements.  I have prepared the Authorized Traders List with input from
Richard Sage and Sheila, which Sara has reviewed.  We are working with
Richard Kerr on the tax id information.  We need to move forward on these
agreements as the traders are anxious to get going.

Thanks,
Stephanie

02/15/2001 02:12 PM
Cheryl Nelson
Cheryl Nelson
Cheryl Nelson
02/15/2001 02:12 PM
02/15/2001 02:12 PM
Sent by: Cheryl Nelson
To: Stephanie Panus/NA/Enron@Enron
cc:

Subject: Urgent Task List for Enron Credit Inc. - Assignment of  Accounts

Stephanie, in the event that we do not meet today, I am sending this email.
I figured out what we need to do to to get started on the Enron Credit
Accounts:

1. One thing we will have to do is open up PRIME brokerage accounts for Enron
Credit Inc. with each of the 3 different brokers.  So we have to preapre an
authorized traders list for Enron Credit Inc.  Please call Richard Sage to
find out if there are particular names we should use for the various officers
or whether they are simply the same as for ENA.  Sheila Glover might also
have some say, find out who knows who the officers of Enron Credit Inc. are.

2.  Then please prepare the Authorized Traders list.  Make sure that the
phone numbers for the folks we put on the list is update.  Do not rely on
People finder.  Confirm with their assistants.

3.  Please have Richard Sage or the appropriate contact person for the tax ID
number, address number and Classification (corporation, partnership, limited
liability co.) for Enron Credit Inc.  We will need this to fill out the tax
form and the Prime Brokerage New Account Information Form.

4.  Please get a W-9 Taxpayer I.D. form and fill out once you get the above
info.  Under part II, I think that we'll want to put "EXEMPT" but we'll want
to doublecheck this with some tax folks once we get the information we need.

5.  We will have to prepare a Form of Assignment.  But we will do that after
we get the abovementioned and other forms together.

I will work on the Prime Agreement and the Unanimous Consent Form next week.
Please forward the above information to me by Tuesday afternoon.  (Monday is
a holiday and I am out of the office tomorrow)

Cheryl Nelson
Senior Counsel
(713) 345-4693


Elizabeth and Christian:

I just spoke with Steve and he can join us for a conference call tomorrow at
1:00 pm PST to discuss contractual setoffs with WAPA.  Unless you hear
otherwise, let's assume Christian and I will initiate the call.  I am also
inviting Todd Barker to the call; Todd is a first-year associate at Stoel
Rives who has been helping Steve and me with WAPA research.---sch


Start Date: 4/10/01; HourAhead hour: 5;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041005.txt


Axel,

I attach a draft agenda for the meeting between Mr Ristori and Mr Shapiro
scheduled for next Wednesday.  If you have any thoughts, let us know.

Brendan
--------------------------------------------------

1. Electricity

Belgian power - status of Commission infringement action - our experience of
continuing closure of market, inability to transit power - inaction of CREG.
French power - forthcoming VPP auctions - border transmission capacity
auctions and ex post border congestion charges - arguments about
"reciprocity" vis a vis neighbouring Member States.
Commission action on Netherlands transmission capacity
German export and import related power transmission tariffs - status of
Commission discussions with German government post Florence?

2. Gas

German & French gas TPA regimes
Madrid process - forthcoming June meeting.
GFU and Norwegian TPA

3. Developments in Energy Policy

Progress of Commission's liberalisation acceleration proposals - outcome of
Energy Council and plans for parliamentary debates.
Green paper on security of supply
Bush Energy Policy


Please forward to all your direct reports
---------------------- Forwarded by Norma Villarreal/HOU/ECT on 11/16/2000
11:23 AM ---------------------------

Norma Villarreal
11/16/2000 11:23 AM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Vasant
Shanbhogue/HOU/ECT@ECT, Mike A Roberts/HOU/ECT@ECT, Pinnamaneni
Krishnarao/HOU/ECT@ECT, Maureen Raymond/HOU/ECT@ECT
cc: Sheila Walton/HOU/ECT@ECT, Shirley Crenshaw/HOU/ECT@ECT
Subject: HR Deadlines and Action Items

PEP system for feedback
ACTION ITEM
Employees need to provide feedback on requested employees
Supervisor's need to contact employee's requested reviewers (via phone mail
or email) who have not submitted feedback.
Deadline for PEP Feedback: Friday, November 17, 2000 CST

Open Enrollment for 20001 Benefit Election
ACTION ITEM
Employees who want change their Benefit election need to go to
www.enron.benefitsnow.com or call 1(800)425-5864.  If you do not have your
2001 Enrolment Personal worksheet which contains your personal identification
number please contact benefits at 1(800)3327373 option 1.
Extended Deadline: Friday, November 17, 2000, 5 p.m. CST

Bonus Defferal Election
ACTION ITEM
Employees wishing to receive stock options and phantom stock in lieu of all
or a portion of the cash bonus received during 20001 can will need to access
ehronline.enron.com.
Deadline: Friday, December 8,2000 CST

Please let me know if you have any questions.

Norma Villarreal
HR Generalist
X31545


The Insurance Luncheon/Presentation  is TODAY.  Lunch will be served at
11:30, with the presentation beginning around noon.  We have reserved The
Houston Room at 601 Jefferson (The Kellogg Building), Level A.

Walking Directions:  Exit the Enron Building, go to the right to Pease (1-1/2
blocks) and turn left.  The Kellogg Building is directly across from the YMCA
on Pease.  Go down the escalator one level to Level A and the Houston Room
will be directly in front of you.

You can also reach The Kellogg Building through the tunnel and skywalks.
Take the tunnel to the Continental Building and then the skywalks will take
you the rest of the way.

Shuttle Riders:  The Enron Shuttle will be leaving at approximately 11:15.
The Shuttle will hold a maximum of 30 people, so hopefully the weather will
clear up and some of you will want to walk the 1-1/2 blocks.  If more than 30
people want to take the Shuttle, he will be making a second trip at about
11:30-11:35.

SEE YOU THERE!


kitsch (kich) noun

   1. Art or artwork characterized by sentimental, often pretentious bad
      taste. The aesthetic or mentality in which such art is conceived or
      appreciated.

   2. Culture or civilization in a degraded state of sentimentality and
      vulgarity.

adjective

   Relating to or characterized by kitsch.

[German, probably of dialectal origin.]

   "Survivors were naturally eager to forget the grimness, and she suggests
   that they were helped in this by kitsch war poetry and by heroic military
   films."
   Hearing silence, Economist, Oct 28, 2000.

This week's theme: words from the German language.

.............................................................................
Have a heart that never hardens, and a temper that never tires, and a touch
that never hurts. -Charles Dickens, novelist (1812-1870)

Q: Tomorrow is my friend's birthday and I forgot to send her a gift. Help!
A: Give the gift of words. Send a gift subscription of A.Word.A.Day at
   http://wordsmith.org/awad/gift.html . It is the gift that keeps on
   giving the whole year long, and beyond.

Pronunciation:
http://wordsmith.org/words/kitsch.wav
http://wordsmith.org/words/kitsch.ram


Following please find a summary of the minor Y2K related glitches that
various business units experienced following the rollover.  As you can see,
the problems we encountered were minimal indeed.  Testing of less critical
functions is ongoing and will continue through normal operations.

Enron Europe
ETOL - Power Station Optimizer application is not accepting data.  The
application is used for informational purposes only, and has no control
functionality.  Operations are not affected.  ETOL will have the application
repaired early next week.

London - Enpower Europe deal selection criteria is not working with date
criteria.  The application does function with deal numbers, however.  The
Houston application team is currently working on the problem.

London - Global Products Accounting has a minor data import problem.  The
problem does not impair daily operations.  Repair date is set for January 4.

Enron House - Fire detection system alarm lights do not turn off following
tests.  The problem is cosmetic only.  Also, remote alarm systems skipped
forward to the date January 31, 2000.  It is believed the problem is also
cosmetic only.

EOTT
Ticketing entry system had a minor problem which has already been repaired.

General ledger application has a program that displays the year 1900.  The
extent of the issue and whether the problem is cosmetic only, is being
pursued.

International Regions
Transredes, Columbia - The pipeline SCADA (Supervisory, Control, and Data
Acquisition) system failed shortly after midnight.  This means the pipeline
control center is not automatically receiving pipeline information.  The
system is used for information purposes only and has not affected operations.

Enron North America
ENA - Enpower deal selection criteria is not working with date criteria. Same
as item two of Enron Europe. ENA has already repaired the problem for North
American operations. Currently discussing European implementation timeline.

ENA - SIFT application has a Microsoft Import problem. This process is not
critical to daily processes conducted by Global Products. Same issue as Enron
Europe item three. Repair date is January 4.

FacSys 4.1 passing wrong date, 01/01/100 instead of today,s date of
01/01/2000, to the fax machine which prints on the banner information.
Remediation scheduled before January 4.

Remediated three Excel macros in the non-commodity trading function.


Mike,

The later hour works perfectly for me.

Vince

Mike Fowler@ENRON
04/25/2001 12:08 PM
To: Vince J Kaminski/HOU/ECT@ECT, Craig Chaney/HOU/ECT, Stephen Stock/HOU/ECT
cc:
Subject:

Could we move the time for dinner Friday from 7 to 7:30 ?  (Veronica might be
going on a field trip for the kids which will run until late in the day.)

Steve, I think Veronica already mentioned this time to Debbie.

Thanks.

Mike


Gerald,

Any update on that PCS guaranty review?  Exposures are pushing past $20MM, a
highly visible exposure.

brant


Good afternoon.

There will be a special meeting via conference call of the i2 Board of
Directors on Tuesday, November 28, from 5:00 - 7:00 p.m. CST regarding the
Eagle acquisition.  We will forward appropriate documentation and
conference call information to you in the near future.

Please feel free to call me or Keith Larney (469-357-4497) with any
questions.  Thank you.
____________________

Shea Dugger
Legal Dept.
Tel: 469-357-4195
Fax: 469-357-6566
shea_dugger@i2.com


Attached is a revised Credit Watch listing as of 3/22/01.    Please note that
the status of both PG&E Energy Trading-Gas Corp. and PG&E Energy
Trading-Canada Corp. is "NO TRADES".
If there are any personnel in your group that were not included in this
distribution, please insure that they receive a copy of this report.
To add additional people to this distribution, or if this report has been
sent to you in error, please contact Veronica Espinoza at x6-6002.
For other questions, please contact Bill Bradford at x3-3831, Russell Diamond
at x5-7095, or Brant Reves at x3-9897.


I have an opening at Capp St. Gallery at CCAC April 19 6 p.m.-9pm called
PLOB

PLOB is an enclosed environment created out of hundreds of identical plastic
translucent modules. Each module has a light and single different sound that
are activated from movement.

Plastic Blob is a plob -
A plob is the state between liquid plastic and solid material object.
A Plob is a noun, but is also a verb. I plob in a state of endlessness.
Capp Gallery is turned into a non-stop amorphous plastic scape that denotes
a world with no boundaries - The space extends itself via plastic organic
modules of repetition d a continuum of surface based on a conventional
Cartesian grid. Plob is a metaphor for a continuous world, a neutral
landscape, and an undulating surface that is reconfigurable and sizable ad
infinitum.

The lightweight plastic moldings are rearrangeable abstractions that are a
growth from the floor, walls, and ceiling - an extension of the natural
landscape to the artificial landscape. All the notions of objects as
singular are dispelled and are replaced by an environment rising out of the
ground. The continuous white field is surrounded by field of fluorescence to
allude to the world of technology, to digital space and arbiters, as a
recluse from infotrophy.

Inevitably our entire physical landscape will merge and connect. Furniture
and space merge, Object and environment, City and town, water and ground,
highway to highway, being to being.

Please come.

Sincerely, Karim Rashid

Karim Rashid Inc.
357 W 17th Street
New York NY 10011
p 212 929 8657
f 212 929 0247

www.karimrashid.com

PLOB - This show for the CAPP STREET GALLERY - CCAC Institute will open
April 19th to May 12 at the Capp St. Gallery in San Francisco.  It is in the
Kent and Vicki Logan Gallery at 1111  8th St, San Francisco, CA 94107

 - Capp Street Gallery- SF


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


this video is so funny.  these two guys are a couple of dumb asses.
---------------------- Forwarded by Matthew Lenhart/HOU/ECT on 08/04/2000
11:57 AM ---------------------------
To: Michael Walters/HOU/ECT@ECT, Harry Bucalo/HOU/ECT@ECT, O'Neal D
Winfree/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT,
Matthew Lenhart/HOU/ECT@ECT, Timothy Blanchard/HOU/EES@EES, Chad
Landry/HOU/ECT@ECT, Yvette G Connevey/Corp/Enron@ENRON, David
Baumbach/HOU/ECT@ECT, Jody Crook/Corp/Enron@ENRON
cc:

Subject: cop shock

 - FingerPig.avi


PLEASE FORWARD YOUR SHIRT SIZE TO ME (S, M, L, XL, ETC.) AS SOON AS POSSIBLE,
BUT NO LATER THAN FRIDAY, SEPTEMBER 8, 2000.

THANK YOU!!!!


October 22, 2001
Notice #MS-92

SWITCH OF LESSOR

	Please be advised that effective with the close of business, October
19, 2001, the following member will switch their lessor within the Exchange:

JEAN-PIERRE STEVENSON (BLUE-486)

	Members and Member Firms have (10) days from the date of this notice
to advise the Corporate Secretary's Office of any claims in accordance with
rule 2.51.

	Inquiries regarding the above should be addressed to the Member
Services Department at 212-299-2378.


FYI
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 02/02/2000
04:11 PM ---------------------------

David Minns@ENRON_DEVELOPMENT
02/02/2000 03:39 PM
To: Sara Shackleton/HOU/ECT@ECT
cc: Alan Aronowitz@ECT
Subject: Re: Australian counterparties - Guaranty in connection with ISDA
Master Swap Agreement

Sara, US legal opinions on guaranties is a hot issue for us. We needed to get
one when we were first granted our licence to trade electricity derivatives
in 1998 from Cadwalader Wickersham and Taft. It advises on the enforcability
of a guaranty under NY law in NY. I will fax it to you. I was planning on
getting an updated opinion as our guaranty form has developed. Also there are
several counterparties who are insisting on an individual opinion, which to
date we have not been willing give.

I am also working through Clement Abrams to get a legal opinion From Vincent
and Elkins on the enforceability of judgment in Australian court in respect
of a Guaranty  in NY. That is a more complicated exercise.

Anyway to answer your question it is customary to an extent. A number of law
firms advise their clients to get to cover themselves. Who is the
counterparty?

Sara Shackleton@ECT
02/03/2000 04:47 AM
To: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Australian counterparties - Guaranty in connection with ISDA Master
Swap Agreement

I am negotiating an ISDA on behalf of ENA with an Australian corporate
insisting upon a legal opinion (enforceability) with respect to the Enron
Corp. guaranty.  Is this a customary request by Australian corporates that
you would normally grant?  If so, who has issued the opinion?  I look forward
to your reply.  Regards.  Sara


You have to admire the initiative!

Suzanne is adding your changes to the purchase agreement now.

Kay

	From:  Scott Healy @ ECT                           11/02/2000 05:26 PM

To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Emissions definitions

I was expecting something a bit more basic when I gave the assignment.  I
thought that you would get a kick out of these definitions.

---------------------- Forwarded by Scott Healy/HOU/ECT on 11/02/2000 05:24
PM ---------------------------

JENNIFER N STEWART@ENRON
11/02/2000 05:16 PM
To: Stephen Plauche/Corp/Enron@Enron, Scott Healy/HOU/ECT@ECT
cc:
Subject: Emissions definitions

Here are the definitions of NOx, SOx, CO, VOC, and Particulates.  :)


Brent -

Attached are the spreadsheets proposed by HoustonStreet for the short
descriptions.  The concept with the attached is that HoustonStreet will post
the spreadsheets to the website and use them to ensure that customers can
identify - by cross-checking the spreadsheet - the description applicable to
the price/product.  In other words, this spreadsheet is intended to give the
customer a cross-reference list between our description and the matching
HoustonStreet description.

Please take a look at this at your convenience and let me know your
thoughts.  I understand through Bob Shults that there is some urgency to this
review.  Any assistance is appreciated.

Mark
Senior Counsel, ENA
Phone:     713-345-8897
Facsimile: 713-646-3940
E-Mail:      Mark.Greenberg@enron.com
----- Forwarded by Mark Greenberg/NA/Enron on 04/19/2001 02:51 PM -----

	John Applegate <japplegate@houstonstreet.com>
	04/19/2001 09:51 AM

		 To: "'mark.greenberg@enron.com'" <mark.greenberg@enron.com>
		 cc: "Bob Shults (E-mail)" <bob.shults@enron.com>, "Travis McCullough
(E-mail)" <Travis.McCullough@enron.com>
		 Subject: HoustonStreet Gas Short Descriptions

Mark:

Per Bob Shults' request, attached please find a spreadsheet comparing HSE's
short product descriptions to EOL's.  Also included in the spreadsheet is a
screen shot of HSE's gas trading floor to put the descriptions into context.
Please review this information purusant to Exhibit I, section 4 of the
Amended and Restated Posting Agreement.  Feel free to call me if you have
any questions.

Regards,
John

 <<HSE Gas Short Product Descriptions.xls>>

John Applegate
Vice President
Business Development
(603) 766-8706
 <<John Applegate.vcf>>

 - HSE Gas Short Product Descriptions.xls
 - John Applegate.vcf


Hi Reggie,
We spoke regarding the chairs on Monday.
Please,  we need these chairs as soon as possible ,without being charged.
We paid for all new chairs each time we moved and it's not fair we pay again.

   Thanks

 Kevin Moore

P.S. These chairs were taken .........
---------------------- Forwarded by Kevin G Moore/HOU/ECT on 04/18/2000 10:46
AM ---------------------------

	Enron North America Corp.

	From:  William Smith @ ENRON                           04/18/2000 10:00 AM

To: Reggie Wilson/EPSC/HOU/ECT@ECT
cc: Shirley Crenshaw/HOU/ECT@ECT, Kevin G Moore/HOU/ECT@ECT
Subject: Replacement of stolen chairs

Reggie,

There may already be a request floating around for a standard black office
chair for EB1972d.  It was stolen over a weekend several weeks ago.  In
addition to that one, my own chair at EB3132A was stolen this past weekend.
Could you come up with a couple of decent ones for us?

If you need to charge them to us, our numbers are 0011 and 100038.  As
always, call me if you need to at x58322.

Thanks!

Sam Smith


Key bullets for 2000 accomplishments and 2001 goals:

Executed firm transport contract with Oneok at maximum rate for California
deliveries.  Contract also includes provision for Marketing Fee if contract
is ever released above max rate.
Completed new interconnect with EOG for additional 15,000/day.  Potential
opportunity for future transport agreement.
Settled dispute with Burlington involving volume commitments under various
pipeline pressures.
Working with SPS and ePrime on potential power plant interconnect.
Working as liaison with programmers to enhance Deal Profitability system.
Working with Accounts Receivable to resolve outstanding reimbursable
projects.


Jim,

1 - Governance: p9/10 covering Scandinavia of the OFFER doc. still broadly
reflects the position.  Plans to broaden the ownership base of Nord Pool
beyond the Norwegian and Swedish SOs to include Finnish and Danish SOs have
not yet materialised.

2.- Transmission owner varies by country.  In N and S, state-owned entities
(Statnett, SvK) that were demerged from state-owned generators (Statkraft,
Vattenfall respectively) are the TOs and SOs (bundled).   As stated above,
NPool is 50/50 owned by Statnett and SvK.  Fingrid, Finnish SO is 25% owned
by PVO (generator), 25% Fortum (generator), government (12%) and
institutional shareholders (38%).  In W.Denmark, the distribution companies
own the SO, Eltra.

In E.Denmark, the situation is somewhat in flux.  Elkraft System (SO) is now
to be owned the E.DK distcos, rather than the dominant generator, EK Energi.
I note that as of 1.01.01, Elkraft System and Elkraft Transmission have been
established as separate entities so there is some move to separate, at least
mominally, TO and SO roles.  However, any consideration of Denmark must
acknowledge the consumer ownership model, which is effectively reverse
vertical integration: distcos own the dominant generators

Finnish and Danish TOs/SOs have no stake in Nord Pool (MO).

3. Participation in Nord Pool remains voluntary.  Participants can contract
directly with NP or with each other for supply.  All tranmission, with some
exceptions, is allocated to Nord Pool and rationed and priced through the NP
auction.

4.  Not quite sure what you mean here.  While there are increasing moves to
coordinate system operation between the countries, each country has its own
balancing market arrangements.

Most of the discussion in the OFFER document on Scandinavia still looks good
to me.  Hope this does the job.

Regards
Philip

Mark Schroeder
04/01/2001 10:38
To: Philip Davies/LON/ECT@ECT
cc: James D Steffes/NA/Enron@Enron

Subject: Re: NordPool

Philip - thanks  mcs

Jim - I had one more thought after speaking with Jeff, and just wanted to
make sure that it had been considered (may have been considered and rejected
by now).  Any thought to treating the huge debt recently rolled up in a way
that is akin to the olds PGA trackers in the gas industry, i.e., allow
utilities a cost of capital (even very low, e.g., 5%), than allow a fixed
monthly recovery, plus when wholesale (or retail prices) fall below some
specified level they can also add in some of the outstanding balance on the
debt that has recently accumulated?  For example if the price cap is set at 6
cents per kWh, and an additional i cent is allowed for recovery of this debt,
total bill is seven.  If prices eventually fall to 4 cents in a competitive
market (California dreaming!?), then utility can recover 4, plus the 1 cent
authorised, plus 2 cents applied toward the old debt (difference between 6
and 4).  Customers could still switch suppliers, and might seek supplier who
will not add on the 2 cents (good for Enron), but might meet the ratemaking
principle that utility has been given reasonable opportunity to recover its
costs.  Also at least delays, if not a permanent solution, any possible
bankruptcy.  Just a thought.   mcs

Philip Davies
04/01/2001 08:49
To: Mark Schroeder
cc:

Subject: NordPool

FYI - I will respond.
---------------------- Forwarded by Philip Davies/LON/ECT on 04/01/2001 08:52
---------------------------
From: James D Steffes@ENRON on 03/01/2001 17:46 CST
To: Philip Davies/LON/ECT@ECT
cc: Jeff Dasovich/NA/Enron@Enron

Subject: NordPool

Philip --

I wanted to make sure that the OFFER memo on Feb 98 still was correct for the
NordPool.

The key issues we are trying to establish are -

1. Governance
1.b Relationship of Transmission Owner to System Operator and Market Operator
2. Mandatory / Voluntary Participation
3. Energy Pool vs. Balancing Pool

If the report is still good, we can probably just pull the answers with some
help from you.

Jim


Group,
I have purchased 8 mws from the service desk for Tuesday (04/10) in SP-15.
We bought 8 mws from a service customer through the APX.  I have made the
entries into CAPs for the purchase from APX.  I have inc'd load in ST-WBOM.
Load will need to be dec'd and the energy sold off. You may want to  combine
it with EES(or buy some mws to make it a whole piece to sell) and use NCPA to
move it North.  Or maybe export it at Silverpeak.  The schedule is as
follows.  8 mw, HE 1-24 on 04/10 in SP-15.  The price is $150 peak, and $100
off peak.  Purchase from Services is #574640, and purchase from APX is
#574629.  Please make any buy-resales and sales under ST-WBOM.
Please call with any questions.

Thanks,
Bill