KENNETH LAY: THE SHOES ARE DROPPING
BusinessWeek- 11/05/01
STOCKWATCH Enron shares resume fall, down 8 pct as SEC opens investigation
AFX News- 11/01/01
USA: RESEARCH ALERT-Merrill lowers Enron rating.
Reuters English News Service- 11/01/01
USA: UPDATE 1-Enron says gets $1 billion in secured credit.
Reuters English News Service- 11/01/01
Credit Suisse Says Citigroup Is Its Top Pick
Dow Jones News Service- 11/01/01
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against Enron Corporation
Business Wire- 11/01/01
Enron Obtains $1 Billion in Financing to Bolster Credit Facilities
Dow Jones Business News- 11/01/01
Enron: EnronOnline Trading Volume Above Average Wed
Dow Jones Energy Service- 11/01/01
USA: UPDATE 1-Before The Bell - Futures up with Microsoft.
Reuters English News Service- 11/01/01
Enron stock price plunges again
Associated Press Newswires- 11/01/01
Enron Misled Investors about Overvalued Assets and Off-Balance Sheet Deals -- ENE
PrimeZone Media Network- 11/01/01
Inside Money
TAKEOVER TALK INVIGORATES ENRON STOCK
Orlando Sentinel- 11/01/01
Enron Gets New Bank Loans But Its Bonds Fall Further
Capital Markets Report- 11/01/01
Enron Gets $1 Bln Loan to Boost Cash, Credit rating (Update3)
Bloomberg- 11/01/01
BG India: To Extend Enron Oil, Gas Field Operator Talks
Dow Jones Energy Service- 11/01/01
INDIAN FINANCIAL INSTITUTIONS FAIL TO RESOLVE DABHOL POWER ISSUE
Asia Pulse- 11/01/01
India: SCI to inject more funds into Greenfield Shipping
Business Line (The Hindu)- 11/01/01
Mariner Energy sells pipelines
The Daily Deal- 11/01/01
Enron and the curse of Drexel
CBS.MarketWatch.com- 11/01/01

In Business This Week: HEADLINER
KENNETH LAY: THE SHOES ARE DROPPING
By Stephanie Anderson Forest in Dallas
Edited by Monica Roman

11/05/2001
BusinessWeek
50
(Copyright 2001 McGraw-Hill, Inc.)
When Enron CEO Jeffrey Skilling resigned abruptly in August after six months on the job, longtime Chairman Kenneth Lay assured investors that ``there's no other shoe to fall.'' So much for the warning. On Oct. 16, the Houston-based energy giant reported its first quarterly loss in more than four years after taking $1.01 billion in write-offs. It also disclosed a surprising $1.2 billion charge to shareholder equity to help unravel complex transactions between Enron and partnerships that until recently had been overseen by former Chief Financial Officer Andrew Fastow. Then, on Oct. 22, Enron revealed that the Securities & Exchange Commission is probing those Fastow-related transactions. Two days later, Enron promoted Jeff McMahon to CFO and announced that Fastow will take a leave of absence. The setbacks have Lay, who has reclaimed the CEO post, scrambling. He must get operations back on track, fend off shareholder lawsuits, and, above all, rebuild credibility with investors.

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

STOCKWATCH Enron shares resume fall, down 8 pct as SEC opens investigation

11/01/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Enron Corp shares were sharply lower, down more than 8 pct at midsession, as investors continued to fear that the company's dealings with the LJM partnership could bring heavy financial reprisals following the opening of a formal inquiry by the Securities and Exchange Commission, dealers said.
At 11.55 am, Enron was down 1.35 usd, or 9.57 pct, to 12.55.
The DJIA rose 61.23 points to 9,136.44, the S&P 500 gained 8.76 points to 1,068.40 points, the Nasdaq composite climbed 23.02 points to 1,713.40.
Yesterday, Enron announced the election of William Powers Jr to the board, to chair a Special Committee that will examine and take any appropriate actions with respect to transactions between Enron and entities connected to related parties.
In addition to reviewing the transactions in question, the Special Committee is charged with communicating with the SEC and recommending any other actions it deems appropriate.
While the investigation might take time to draw a conclusion, the immediate cash crunch Enron has been facing is expected to be resolved, said Merrill Lynch analyst Duane Grubert.
One step in that direction came following Enron's announcement that JP Morgan and Salomon Smith Barney Inc have executed commitment letters to provide 1 bln usd in secured credit lines supported by the company's Northern Natural Gas and Transwestern Pipeline assets.
Over time, Enron has several other options to raise cash, including cutting its 400 mln usd per year dividend, cutting back on its 1500 mln usd of capital spending, and monetizing its July 2002 right to convert debt into 11.5 million shares of EOG, said Grubert.
The danger for the company now is that a "real or fabricated confidence crisis by Enron's counterparties threatens near term strength of the merchant segment. Competitors could get mean, and could prematurely shun Enron, while trying to steal market share," he said.
blms/aw For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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

USA: RESEARCH ALERT-Merrill lowers Enron rating.

11/01/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 1 (Reuters) - Merrill Lynch on Thursday said it lowered both its mid-term and long-term ratings for Enron Corp. , the No. 1 buyer and seller of natural gas, to "neutral," from "accumulate" and "buy," respectively, due to uncertainty about the U.S. Securities and Exchange Commission's investigation into the company's financial dealings.
Analyst Donato Eassey said in a research note that while he "has not altered his view of Enron's fundamentals or its ability to weather the long term storm," he believes the noise surrounding the SEC's investigation will overpower any earnings analysis.
"Ultimate outcome and underlying fundamentals aside, we believe significant pressure and uncertainty will remain on Enron until the investigation concludes," Eassey said.
The Houston-based company, whose stock has been sent into a tailspin by the probe, said on Wednesday the informal inquiry by the SEC had become a full-scale investigation of the company's finances.
The stock slumped $1.34, or nearly 10 percent, to $12.56 in Thursday morning New York Stock Exchange trade. In the past week and a half, the stock has dropped to nine-year lows while losing $17 billion in market value.

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

USA: UPDATE 1-Enron says gets $1 billion in secured credit.

11/01/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 1 (Reuters) - Enron Corp., facing a probe by U.S. regulators into its financial dealings, on Thursday said it obtained $1 billion in secured credit lines to bolster investor confidence.
Enron said J.P. Morgan, the investment banking arm of J.P. Morgan Chase & Co., and Citigroup Inc. unit Salomon Smith Barney Inc. will provide the credit, which will be secured by Enron's Northern Natural Gas Company and Transwestern Pipeline Co. assets.
The proceeds will be used to supplement short-term liquidity and to refinance maturing obligations, Enron said. The commitments are subject to customary terms and conditions, including final due diligence, the company said.
The announcement came shortly before opening trade on the New York Stock Exchange, where Enron shares plunged $1.60, or 11.5 percent, to $12.30.
Earlier Thursday, brokerage house Merrill Lynch & Co. cut its rating on Enron to "Neutral/Neutral" from Accumulate/Buy." The Securities and Exchange Commission said late Wednesday it was making an informal inquiry into Enron transactions a full-scale investigation.
"This is yet another step in our efforts to enhance market and investor confidence," said Jeffrey McMahon, Enron's new chief financial officer. "We are moving aggressively to strengthen our balance sheet and maintain our investment grade credit rating."
Kenneth Lay, Enron's chairman and chief executive, said with more than $1 billion in cash on hand, the additional credit capacity will "further solidify Enron's standing as the leading market maker in wholesale energy markets."

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

Credit Suisse Says Citigroup Is Its Top Pick

11/01/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Credit Suisse First Boston Corp.'s (Z.CSF) research team covering the brokerage industry said its investment strategy remains "defensive" given the uncertainty that continues to pervade the marketplace.
CSFB analyst Joan Solotar recommends investing in the "highest quality/strongest franchise" companies only with a 12 to 18 month time frame in mind because the stocks could lose some value in the near-term.
Citigroup Inc. (C) is their top pick, Solotar said in a research note, with a price target in the mid-50s. The financial services giant was recently trading up 4 cents, or 0.1%, at $45.40. For investors seeking a purer-play company in the brokerage arena, she suggests Goldman Sachs (GS), given its "longer-term franchise value as well as nearer-term relative market share momentum."
"Brokerage stocks have performed surprisingly well in the face of adversity," Solotar said, noting their 9% rise on average in October. "We believe this mostly relates to the assumption by investors that enough fiscal stimulus had been injected to cause an economic rebound."
As a result, Solotar believes the stocks already reflect some amount of earnings recovery.
"Our concern rests on the belief that returns next year are not likely to exceed the low-to-mid teens for most firms, and with book valuation hovering above two times, there is much room for disappointment," she said, "Add to that the uncertainty surrounding terrorist attacks, and the need to add expenses next year in the form of new back-up sites and hot-sites."
She doesn't expect to see much demand for investment banking services without an economic recovery; equity underwriting backlogs now stand at the lower end of the recent $18 to $20 billion range. Underwriting levels should remain at current levels, as should merger and acquisition activity, she said in the note.
Trading volumes are down from their initial surge after September 11, but are holding steady.
"If we believe we may have defined bottom, why are we not more bullish?," Solotar said, "While we may project September was bottom, we are not projecting much in the way of recovery any time soon."
She said fixed-income business, while relatively stronger than other areas, is not providing as much as it was in the first half of the year. Meanwhile, newer problems, such as exposure to Enron Corp. (ENE), create uncertainty. Solotar said she doesn't know of any direct exposures to Enron. Enron's shares have tumbled since Oct. 16 when it posted third-quarter charges of $1.01 billion. The charges are related to certain investments which were run by former financial chief Andrew Fastow. On Thursday, the Securities and Exchange Commission's inquiry into partnerships head by Fastow moved to an official investigation.
-By Tara Siegel Bernard, Dow Jones Newswires; 201-938-5288; tara.siegel@dowjones.com

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

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against Enron Corporation

11/01/2001
Business Wire
(Copyright (c) 2001, Business Wire)
WASHINGTON--(BUSINESS WIRE)--Nov. 1, 2001--The following notice is issued by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C., on behalf of its client, who filed a lawsuit on October 31, 2001 in the United States District Court for the Southern District of Texas (Houston Division), on behalf of purchasers of the common stock of Enron Corporation ("Enron" or the "Company") (NYSE:ENE) during the period of January 18, 2000 through and including October 17, 2001 (the "Class Period").
The complaint alleges that the defendants violated section 10(b) of the Securities Exchange Act of 1934 ("The Exchange Act"), and Rule 10b-5 promulgated thereunder, and that defendants' wrongful conduct artificially inflated the price of Enron common stock during the Class Period. The complaint charges that the defendants misrepresented and concealed material facts concerning the Company's financial transactions with two partnerships established by Enron's then Chief Financial Officer, which resulted in substantial losses to Enron and a reduction in shareholders' equity of over $1 billion. The price of Enron's common stock has plummeted over 50% since the disclosure of the financial losses resulting from Enron's dealings with these partnerships.
Plaintiff's counsel -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. -- has significant experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in Washington, D.C., Seattle, Washington and New York, New York and is active in major litigation pending in federal and state courts throughout the nation.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total hundreds of millions of dollars or more.
If you purchased shares of Enron stock during the Class Period, you may move the Court no later than December 21, 2001 to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal standards.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Andrew N. Friedman, Esq.
or
Mary Ann Fink
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, NW
West Tower, Suite 500
Washington, DC 20005
Telephone: 888/347-4600 or 202/408-4600
E-mail: afriedman@cmht.com or mfink@cmht.com

CONTACT: Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Andrew N. Friedman, 888/347-4600 afriedman@cmht.com or Mary Ann Fink, 202/408-4600 mfink@cmht.com
10:20 EST NOVEMBER 1, 2001

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

Enron Obtains $1 Billion in Financing to Bolster Credit Facilities

11/01/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -- Enron Corp. said Thursday it has secured commitments for an additional $1 billion in financing from units of J.P. Morgan Chase & Co. and Citigroup Inc. as the embattled energy trader moves to supplement its credit facilities.
"This is yet another step in our efforts to enhance market and investor confidence," said Enron Chief Financial Officer Jeffrey McMahon. "We are moving aggressively to strengthen our balance sheet and maintain our investment grade credit rating."
Enron has seen its stock price plummet in a selloff sparked by a loss of investor confidence in the company following big third-quarter write-downs and the disclosure of an inquiry by the Securities and Exchange Commission. In morning trading on the New York Stock Exchange, Enron (ENE) shares were down $1.67, or 12%, to $12.23. The stock has declined from a 52-week high of $84.88.
Enron's new financing is secured by its Northern Natural Gas Co. and Transwestern Pipeline Co. assets.
The financing news comes a day after the SEC elevated to a formal investigation its inquiry into Enron's financial dealings with partnerships headed by its former chief financial officer, Andrew Fastow. A formal investigation involves the SEC's enforcement branch going to the five-member commission and obtaining formal subpoena power to pursue its inquiry.
Enron last week disclosed that the SEC had contacted the company as part of what it described as an informal inquiry into the Fastow-related partnerships. At the time, Enron said it welcomed the inquiry and that it would cooperate fully with the SEC -- a position the company has restated repeatedly since.
In turn, Enron named William Power a director and head of a four-member committee to look into the Fastow-related transactions and other matters. Power is dean of the University of Texas School of Law.
Enron has consistently said its dealings with the Fastow-connected partnerships were legal and properly disclosed to investors. According to Enron filings with the SEC, the company did deals involving billions of dollars of assets and Enron stock with entities related to the Fastow partnerships. Internal partnership documents indicate that Mr. Fastow and possibly others made millions of dollars from the partnerships. Mr. Fastow, who was replaced as chief financial officer by Mr. McMahon last week, has consistently declined to be interviewed.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

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

Enron: EnronOnline Trading Volume Above Average Wed

11/01/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
(This article was originally published Wednesday.)

NEW YORK -(Dow Jones)- Enron Corp.'s (ENE) electronic trading system, EnronOnline.com, saw 7,100 transactions Wednesday by early evening, company spokesman Eric Thode said.
A handful more deals were expected Wednesday evening because some products trade 24 hours a day.
As in the past two weeks, the volume of transactions Wednesday exceeded the 30-day average volume of about 5,600 daily transactions.
"It's been above average for a while," Thode said, due to "people balancing portfolios heading into winter and because of the volatility in the gas and power markets."
Some industry sources have speculated that EnronOnline volumes may be higher than normal because counterparties are busy flattening their positions with Enron because of questions of Enron's creditworthiness. EnronOnline isn't an exchange. It's a vehicle for customers that want to execute trades with Enron. Enron is the counterparty for all deals done there.
"Because we know people's transactions and their portfolio with us, we know that is not the case. It is business as usual," Thode said.
Trading volumes are normally lower at the beginning of new months, Thode said. Wednesday was effectively part of November for over-the-counter energy markets, where spot trades are for next-day delivery. The last day of trading for November forward power contracts was Tuesday.
EnronOnline trading volume at the beginning of September, said Thode, was probably in the low to mid 5,000 range, which was well below Wednesday's number.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com

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

USA: UPDATE 1-Before The Bell - Futures up with Microsoft.

11/01/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Nov 1 (Reuters) - U.S. technology stock futures rose in pre-opening trading on Thursday and Microsoft Corp. gained after sources said government officials were weighing a proposal to settle the software giant's landmark anti-trust case.
The December Standard & Poor's 500 futures contract was up 2.30 points at 1,063, and the comparable contract for the technology-steeped Nasdaq 100 index was up 14.50 points at 1,384.
Microsoft's shares climbed to $59.90 on the Instinet electronic brokerage system from $58.15 at Wednesday's close.
Computer heavyweight International Business Machines countered Microsoft's gains. Its shares slid after Morgan Stanley initiated coverage of the company's stock as "neutral," falling $107.37 on Instinet from Wednesday's close of $108.07.
Enron Corp., the nation's largest energy trader, also dropped after it said late Wednesday an informal inquiry by the U.S. Securities and Exchange Commission had become a full-scale investigation of questionable financial dealings.
Enron dropped to $12.75 from $13.90 at Wednesday's close.
Telecommunications equipment maker ADC Telecommunications Inc. slipped after it warned that its fourth-quarter results would be worse than expected because of the continued decline in capital spending by communication service providers. It dropped to $4.50 from Wednesday's close of $4.55.
King Pharmaceuticals Inc. rose to $39.30 after from Wednesday's close of $38.99 after Moody's Investors Services raised its rating on some of the company's debt.
Technology stocks like Sun Microsystems , up at $10.30 from $10.15 at Wednesday's close, and Intel Corp. , up at $24.50 from $24.42 at the prior close, bolstered the high-tech sector.
The Nasdaq-100 Pre-Market Indicator was up 0.89 percent.

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

Enron stock price plunges again
By JUAN A. LOZANO
Associated Press Writer

11/01/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
HOUSTON (AP) - Troubled Enron Corp. said Thursday it has secured $1 billion in new financing, using its natural gas and pipeline assets as collateral. But its stock price took another dive after rising a day earlier on takeover speculation.
In afternoon trading Thursday on the New York Stock Exchange, Enron shares were down 9.3 percent, or $1.29 a share, at $12.61.
After dropping to a nine-year low on Tuesday, shares of the nation's largest natural gas and power marketer rose 25 percent Wednesday amid speculation the Houston-based company was a takeover candidate.
But after the stock market closed for the day, Enron announced the Securities and Exchange Commission had opened a formal investigation into possible conflicts of interest.
The SEC is apparently looking into dealings Enron had with partnerships led by its former chief financial officer, Andrew Fastow, who was forced out last month as investors fled because of questions about the arrangements.
On Thursday, Enron announced its investment bankers had arranged for $1 billion in fresh credit lines that it planned to use partly to refinance maturing debts.
"This is yet another step in our efforts to enhance market and investor confidence," said Jeffrey McMahon, Enron's new chief financial officer. "We are moving aggressively to strengthen our balance sheet and maintain our investment grade credit rating."
Late Wednesday, Enron said it created a special committee headed by University of Texas law school dean William Powers to respond to the SEC investigation. Powers also was elected to Enron's board of directors.
"I have asked the board to take this action to address fully and forthrightly investors' questions and concerns," said Enron chairman and chief executive Kenneth L. Lay. "We will also make every appropriate public disclosure during the course of the SEC's investigation."
However, Duane Grubert, an analyst with Sanford C. Bernstein and Co. in New York, said Enron still has much to do to restore investor confidence.
"With (stock) values this low, you've got two camps of investors: guys that hate Enron and guys that want to be cautiously attracted to Enron," Grubert said. "It's led to the trading range being irrationally low and shares being oversold. It's not something the company wants."
Enron's stock has skidded since the company reported a $638 million third quarter loss just over two weeks ago, dragged down by a one-time charge of $1.01 billion attributed to various losses. Some of these losses have been tied to partnerships managed by Fastow, who was ousted last week.
Earlier this week, Moody's Investors Service downgraded the company's long-term debt and warned of possible further downgrades.
Since reporting its disappointing third quarter, Enron had been negotiating to establish new credit lines.
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said Wednesday's stock price surge, after two weeks of selling, was likely a reaction to a The Wall Street Journal report on rumors of a possible takeover of Enron.
Others might have been buying figuring the stock had hit bottom, she said.
On Tuesday, Enron's stock closed at $11.16, its lowest level since 1992.
Potential buyers include General Electric's GE Capital unit, Warren Buffett's Berkshire Hathaway and Royal Dutch Shell, the Journal said.
---
On the Net:
http://www.enron.com

AP Photo XNYR310 of Oct. 29

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

Enron Misled Investors about Overvalued Assets and Off-Balance Sheet Deals -- ENE

11/01/2001
PrimeZone Media Network
Copyright (c) 2001 PrimeZone Media Network, Inc. All Rights Reserved.
PHILADELPHIA, Nov. 1, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit on behalf of an investor against Enron Corp. ("Enron" or the "Company") (NYSE:ENE) and its principal officers and directors in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased Enron securities during the period from March 30, 2000 through and including October 18, 2001, inclusive (the "Class Period").
The complaint alleges that Enron and its principal officers and directors violated Section 10(b) and 20 (a) of the Securities Exchange Act of l934 and SEC Rule 10b-5. The complaint alleges that defendants misled investors (1) by reporting assets that were overvalued by more than $1 billion, which caused writedowns in that amount and are expected to lead to further writeoffs of hundreds of millions of dollars, (2) by concealing facts regarding relationships with a related entity that led to a more than $1 billion reduction of shareholders' equity and a $35 million charge, and (3) by failing to disclose the fact that agreements with other related entities satisfaction of which include obligations that may require the Company to issue large amounts of its shares. This misconduct caused the market prices of Enron stock to be artificially inflated during the Class Period. When facts about these matters were disclosed at the end of the Class Period, the market price of the Company's stock fell from a high of $90 per share during the Class Period to a low of $15 per share, and securities analysts downgraded their ratings of the Company's stock despite the precipitous fall in its market price. Also, Enron's senior debt was placed on notice by Moody's for possible downgrade.
Also, an SEC inquiry into the Company's transactions with related entities has been announced, and the Company revealed that its Chief Financial Officer, who is one of the Defendants, has taken a "leave of absence" from the Company, and has been replaced. If you purchased Enron securities during the period from March 30, 2000 through October 18, 2001, inclusive, you may, no later than December 21, 2001 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Enron securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million)
If you purchased Enron securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Carole A. Broderick, Esquire
Arthur Stock, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.

Berger & Montague, P.C. Sherrie R. Savett, Esquire Carole A. Broderick, Esquire Kimberly A. Walker, Investor Relations Manager (888) 891-2289 or (215) 875-3000 Fax: (215) 875-5715 InvestorProtect@bm.net

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

MONEY
Inside Money
TAKEOVER TALK INVIGORATES ENRON STOCK
JUAN. A. LOZANO, ASSOCIATED PRESS

11/01/2001
Orlando Sentinel
METRO
C5
(Copyright 2001 by The Orlando Sentinel)
HOUSTON -- After plummeting to a nine-year low following recent economic losses and an investigation by federal securities regulators, shares of Enron Corp. jumped nearly 25 percent Wednesday amid speculation the company was ripe for takeover.
Shares of Enron, the nation's largest natural gas and power marketer, rose $2.74 to close at $13.90 Wednesday on the New York Stock Exchange. It is still down 69 percent since the company reported third-quarter earnings two weeks ago.
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said Wednesday's surge was likely a reaction to a Wall Street Journal report that Enron's beaten-down stock price has stirred rumors of a possible takeover. Others may be buying figuring the stock has hit bottom, she said.
On Tuesday, Enron's stock closed at $11.16, its lowest level since 1992.
Potential buyers include General Electric's GE Capital unit, Warren Buffett's Berkshire Hathaway and Royal Dutch Shell, the Journal said.
Duane Grubert, an analyst with Sanford C. Bernstein and Co. in New York, said Shell, which has a small presence in energy marketing, would be a good fit.
"Shell tried to be in the merchant energy arena and didn't really succeed," he said. "To buy into an established franchise must be attractive to Shell."
Enron officials did not immediately return telephone calls Wednesday.

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

Enron Gets New Bank Loans But Its Bonds Fall Further
By Joe Niedzielski
Of DOW JONES NEWSWIRES

11/01/2001
Capital Markets Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- Word that Enron Corp. (ENE) had secured $1 billion in fresh funds Thursday did little to soothe prices on the company's outstanding debt securities.
Similar to other companies like Lucent Technologies Inc. (LU) that have faced short-term liquidity issues this year, Enron was forced to put up its assets in order to secure the financing. And the new bank facilities leapfrogged in front of other creditors like senior unsecured lenders.
The Houston-based energy and trading company said in a statement Thursday that the new financing is supported by Enron's Northern Natural Gas Company and Transwestern Pipeline Company assets. JPMorgan and Salomon Smith Barney were co-arrangers on the credit lines.
Enron plans to use the proceeds to supplement short-term liquidity and to refinance maturing obligations. The new $1 billion of secured credit lines with the more than $1 billion in cash currently on the balance sheet "will further solidify Enron's standing as the leading market maker in wholesale energy markets," Kenneth Lay, Enron's chairman and chief executive officer, said in the statement.
But the need to pledge assets to get the credit lines shows caution on the part of lenders that's understandable given Enron's situation, said Susan Abbott, a managing director in corporate finance at Moody's Investors Service.
"It signals the fact that the people with the money are not confident enough to trust the general corporate creditworthiness of the entity they're loaning money to," Abbott said. Still, by securing the $1 billion, Enron avoided a negative signal that it couldn't secure financing, she said.
Moody's lowered the company's senior unsecured long-term debt rating Monday to Baa2 from Baa1. The debt is rated triple-B-plus by Standard & Poor's Corp., with a negative outlook. Fitch also maintains a triple-B-plus rating and it placed the debt on Rating Watch Negative late last week.
Questions Remain

Traders and bondholders aren't convinced that the new money will be enough. Enron has yet to post information on its balance sheet with the Securities and Exchange Commission. And late Wednesday it disclosed that the SEC elevated to a formal investigation its inquiry into Enron's financial dealings with partnerships headed by its former CEO, Andrew Fastow.
Some market participants remain concerned over the lack of disclosure over Enron's off-balance sheet financing vehicles.
One bank loan officer in New York also cited concerns over the amount of trade receivable and physical settlement obligations Enron may have upcoming in its energy trading business.
Abbott at Moody's said the main question is whether Enron's trading counterparties will tighten credit requirements. Other liquidity needs for Enron, she said, are a matter of whether the markets are demanding additional collateral.
Earlier Thursday, Enron's bonds were down about three to four points after trading up Wednesday by as much as five points. Enron bonds that come due in 2005 were quoted just shy of 78 cents on the dollar, while Enron paper that matures in 2009 was bid at around 76 cents. Shorter-term paper that comes due in 2003 was bid slightly higher at 77 cents on the dollar.
Enron bank debt has also fallen this week. A five-year revolving loan facility is quoted in the high 70s, while a 364-day facility, part of $3 billion in loan facilities that Enron drew down on last week, was quoted at around 90 cents on the dollar, according to Loan Pricing Corp. in New York.
In addition, the credit default swap market, where participants can buy protection against defaults or other credit events like loan restructurings, is displaying signs of distress in the Enron name. Those willing to sell Enron protection this week have demanded some of the premium, or "points" up front, to go into the trade.
Usually, trades in credit default swaps are initially unfunded, with premiums paid on a quarterly or semiannual basis, similar to a company's interest payments on its bonds.
The cost is also higher to write protection over the next year than it is for protection that covers the next three years. Traders say this indicates there are concerns over Enron's obligations coming due.
Recent quotes for credit protection on Enron call for buyers to pay 12% to 15% of the notional amount of the contract up front, with the annual premium for one-year protection at around 15%. Enron's credit curve then slopes downward with three-year protection offered at around 11%.
Enron's stock was down $1.33 at $12.57 in early afternoon trade.

-By Joe Niedzielski, Dow Jones Newswires, 201-938-2039; joe.niedzielski@dowjones.com
(Andrew Dowell contributed to this story.)

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

Enron Gets $1 Bln Loan to Boost Cash, Credit Rating (Update3)
2001-11-01 11:40 (New York)

Enron Gets $1 Bln Loan to Boost Cash, Credit Rating (Update3)

     (Adds possibility of additional loans in 12th paragraph.)

     Houston, Nov. 1 (Bloomberg) -- Enron Corp., the largest
energy trader, received a $1 billion loan from J.P. Morgan Chase &
Co. and Salomon Smith Barney Inc. after agreeing to use the
company's natural-gas pipelines as collateral.

     Proceeds will go for debt payments and to supplement Enron's
short-term cash reserves. Assets of Enron's Northern Natural Gas
Co. and Transwestern Pipeline Co. will secure the loan.

     The financing comes a day after Enron said the U.S.
Securities and Exchange Commission is formally investigating
partnerships run by its former chief financial officer. Using the
pipelines as collateral signals Enron's desperation to reassure
shareholders and trading partners that it is creditworthy,
investors said.

     ``Its not reassuring, it's worrisome,'' said Donald Coxe,
manager of the Harris Insight Equity Fund, which owns about 78,000
Enron shares. ``If they had to secure the loan, obviously the
lenders don't think they can rely on Enron's financial
statements.''

     Shares of Enron fell $1.35, or 9.7 percent, to $12.55 in late
morning trading. Earlier, they dropped to $11.47. Before today,
the shares had fallen 83 percent this year.

     Enron's shares fell 52 percent last month amid an SEC inquiry
into partnerships headed by Andrew Fastow, Enron's former chief
financial officer, that cost $35 million and $1.2 billion in lost
shareholder equity. A formal SEC investigation began yesterday.

     ``It seems until we know more about the SEC investigation,
it's going to be a difficult time for the stock,'' said Tara
Gately, an energy analyst at Loomis Sayles & Co., which sold most
of its Enron shares early last year.

                      Pipeline as Collateral

     Enron, based in Houston, got its start as a gas-pipeline
company. In the past decade, Chairman Kenneth Lay has transformed
the company into the biggest trader of electricity, natural gas,
forest products and other commodities. Enron accounts for about a
quarter of U.S. power and natural gas trades.

     Northern Natural Gas, Enron's largest pipeline, has
approximately 16,500 miles of pipeline from the Permian Basin in
Texas to the Great Lakes. Transwestern Pipeline spans about 2,500
miles.

     Since the SEC began its inquiry, concerns about shaky
finances have prevented Enron from selling commercial paper, or
short-term IOUs. The financing is to ``enhance market and investor
confidence,'' Enron Chief Financial Officer Jeffrey McMahon said
in a statement.

     ``We are moving aggressively to strengthen our balance sheet
and maintain our investment grade credit rating'' McMahon said.

     Enron can borrow another $200 million by bringing other banks
into the loan, spokeswoman Karen Denne said. ``We don't have any
plans to do so at this point,'' she said.

                           Credit Rating

     On Monday, Moody's Investors Service lowered Enron's long-
term credit rating to ``Baa2'' from ``Baa1,'' two notches above
junk status. It also placed the company's ``P-2'' rating for
commercial paper on review for possible downgrade.

     Falling below investment grade would trigger early repayment
terms for affiliated companies Enron formed to buy its assets such
as power plants. The affiliates plan to repay borrowed money by
selling the assets. Enron might have to repay any difference
between what the assets sell for and the underlying debt.

     J.P. Morgan is advising Enron on the sale of part of its
Azurix North America water business to American Water Works Inc.
for $148.8 million in cash and assumed debt. Salomon Smith Barney
is the investment banking arm of Citigroup Inc.

BG India: To Extend Enron Oil, Gas Field Operator Talks

11/01/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
SINGAPORE -(Dow Jones)- U.K. oil and gas company BG Group PLC (BRG) said Thursday it will extend the negotiation period on the operatorship of the Indian upstream assets of Enron Corp. (ENE) acquired by BG for US$388 million in early October.

0909GMT
A disagreement between BG and Enron Corp.'s former joint venture partners - state-owned Oil & Natural Gas Corp. (P.ONG) and Reliance Industries Ltd. (P.REL) - soon after BG acquired Enron Corp.'s upstream India assets threatened to scuttle the deal.
BG's goal of acquiring Enron's operatorship of the offshore Tapti gas field and the Panna/Mukti oil and gas field was being challenged by the two other partners which jointly hold a 70% stake in the assets.
BG made it clear it would walk away from the deal if it didn't get outright operatorship by Oct. 31.
But in a statement issued Thursday, BG India Vice President Nigel Shaw indicated talks between the three parties were positive and ONGC and that Reliance Industries could reach an agreement.
"We are making good progress and will continue discussions with ONGC and Reliance to reach agreement for BG India to operate these assets. We believe that this proposal is advantageous and is in the interests of the partnership," Shaw said.
BG India said it expects to continue discussions over the "coming weeks" and "will make an announcement in due course." The statement didn't specify the extended length of the negotiations.
The Indian government wants ONGC and Reliance to have first option on the operatorship, which was being pursued by both companies, according to Indian newspaper reports in October.
BG has portrayed its purchase of Enron Oil and Gas Ltd., or EOGIL, as significant as it raises its upstream profile, by boosting the group's global hydrocarbon production by up to 7%, and diversifying its distribution and pipeline interests in the fast-growing Indian energy market.

Susanta Mazumdar, a Bombay-based energy analyst with UBS Warburg (U.UBS) said BG India's bid for operator status would continue to face stiff resistance from ONGC and Reliance.
"Both ONGC and Reliance may not give up that easily. There is a strong corporate incentive to get operator status. BG India may have to give some concessions in other fields in return for operator status," Mazumdar said.
At the time of writing, ONGC and Reliance Industries declined to comment on BG India's move to extend the operatorship talks.
About 0932 GMT, BG Group shares were up 6.25 pence at 266.50 pence on the London Stock Exchange.
-By Sri Jegarajah, Dow Jones Newswires; 65-415-4066; sri.jegarajah@dowjones.com

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

INDIAN FINANCIAL INSTITUTIONS FAIL TO RESOLVE DABHOL POWER ISSUE

11/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.
NEW DELHI, Nov 1 Asia Pulse - Financial Institutions led by the Industrial Development Bank of India (IDBI) have failed to come up with a solution to the long payment dispute with United States energy company Enron that has forced the closing of the US$2.9 billion Dabhol Power Project.
Top officials of IDBI and ICICI met officials in the Finance and Power ministries here today but failed to come up with an "optimum" solution.
"We discussed Enron. The discussions are continuing and we are examining various options," IDBI Chairman P P Vora told reporters after meeting Power Secretary A K Basu.
He said the FIs, which have a total exposure of over Rs 62 billion in the project, wanted to come up with a optimum solution but declined to give a time frame for it.
Earlier in the day, Vora met Finance Minister Yashwant Sinha to apprise him about the situation.
FIs had decided to come up with a solution by Oct 31 for the second phase of the 2,184 MW Dabhol Power Company (DPC).
A settlement of the Enron imbroglio, being played out since early this year, assumes importance in view of Prime Minister Atal Bihari Vajpayee's forthcoming visit to Washington where he is likely to have wide ranging discussions with US President George Bush.
Enron was the biggest donor to Bush's presidential electoral campaign.
So far, Tata Power and BSES Ltd. were in the fray for buying Enron's stake in DPC.
Although the companies showed reluctance to buy Enron's stake at the price spelled out by the US power giant, Vora said the two companies are still in the fray.
(PTI) 01-11 1900

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

India: SCI to inject more funds into Greenfield Shipping

11/01/2001
Business Line (The Hindu)
Fin. Times Info Ltd-Asia Africa Intel Wire. Business Line (The Hindu) Copyright (C) 2001 Kasturi & Sons Ltd. All Rights Res'd
NEW DELHI, Oct. 31 AFTER several rounds of discussions and consultations within its board and with the Ministry of Shipping, the Shipping Corporation of India (SCI) has finally decided to pump in $ 13 million as additional investment in Greenfield Shipping Company to part-fund the gap in project cost of $ 55 million for building an LNG tanker for transporting gas to Dabhol Power Company.
"The Shipping Ministry has given its in-principle approval to SCI for investing an extra $ 13 million in Greenfield which will be in the form of a loan to the company and not as extra equity. The additional investment by SCI would not require clearance from the Union Cabinet," Government sources told Business Line.
Though the additional investment of $ 55 million is to be shared equally by the three promoters of Greenfield in proportion to their equity holdings, this proposition has gone awry due to the fact that one of the promoters, Enron-affiliate Atlantic Commercial Inc with a 20 per cent stake, has clearly said no to putting its share of extra funds.
In fact, Atlantic Commercial Inc.is understood to have expressed a desire to exit from Greenfield by selling its equity worth $ 11 million and the swap cost of $ 19 million.
Consequently, the extra investment of Atlantic Commercial Inc of $ 11 million is being shared by the other two partners - SCI and Japan's Mitsui O.S.K. Lines - apart from their own share of the additional cost in proportion to their equity holdings of 20 per cent and 60 per cent respectively.
So, SCI will put in an additional $ 13 million comprising its share of $ 11 million and $ 2 million of Atlantic Commercial's share. Whereas, MOL will pump-in an additional $ 42 million including its share of $ 33 million and $ 9 million of Atlantic's share.
The additional investment by the promoters of Greenfield Shipping Company has become necessary after the bankers to the LNG shipping deal led by ANZ Investment Bank had suspended disbursement of the last tranche of the project loan of $ 55 million, citing an event of default.
The additional investment made by SCI and MOL will take the form of a loan to Greenfield which would enable the Company to take possession of the LNG tanker on the scheduled delivery date of November 15.
Greenfield was formed for owning an operating a 137,000 cubic metre capacity tanker for transporting LNG to Enron-promoted Dabhol power plant. The tanker is ready for delivery at the yard of Mitsubishi, Japan.
The promoters are negotiating with Oman LNG to deploy the LNG tanker 'LNG Laxmi' till the LNG terminal of Dabhol goes on stream.
P. Manoj

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

New & NoteWorthy
Mariner Energy sells pipelines

11/01/2001
The Daily Deal
Copyright (c) 2001 The Deal LLC
Enron Corp. - Enron North America - Pioneer Natural Resources Co. - Nippon Mitsubishi Group - Nippon Oil Exploration USA Ltd. - Mariner Energy Inc.
Houston oil and gas explorer Mariner Energy Inc. said Wednesday it would sell its interests in the Aconcagua field and the Canyon Express pipeline system in the Gulf of Mexico to Nippon Oil Exploration USA Ltd. for $51 million. The field is one of three deepwater natural gas fields being developed to connect with the pipeline system and is located 150 miles southeast of New Orleans. Closing is set for today. Nippon Oil is a unit of Japan's Nippon Mitsubishi Group and Pioneer Natural Resources Co. of Irving, Texas. Mariner is owned by an affiliate of Enron North America, a unit of Houston energy trading and marketing giant Enron Corp., which provided financing for a 1996 management led buyout. -Claire Poole www.TheDeal.com

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

Enron and the curse of Drexel
Commentary: Energy trader's friends dry up
By David Callaway <<mailto:dcallaway@marketwatch.com>>, CBS.MarketWatch.com
Last Update: 1:15 AM ET Nov. 1, 2001
SAN FRANCISCO (CBS.MW) -- It was the master of its universe.

Its employees were rich, young and ruthless. It treated its clients and rivals alike, with disdain. Its leader counseled business tycoons and political powerbrokers alike. And when the bottom finally fell out, it didn't have a friend in the world to save it.

Wall Street loves a success story. But it loves a success story gone wrong even more. Such was the case for Drexel Burnham Lambert, the junk bond empire of the 1980s, whose spiritual leader Michael Milken orchestrated one of the greatest financial shell games of all time before it collapsed in a heap of federal investigations, losses and the largest bankruptcy in Wall Street history.

For Enron, the energy trading giant that has seen its shares lose more than two-thirds of their value this month amid questions about its financial transactions and its stability, the similarities are striking.

Like Drexel, Enron set out to change an industry. Like Drexel, it succeeded, for a while. Under the guidance of Chairman Ken Lay, Enron evolved from a backwater Texas natural-gas pipeline company to become the nation's largest energy merchant.

Its EnronOnline business transformed the way energy trading was done and funneled hundreds of billions of dollars in transactions through the company in last two years. The aggressive trading philosophy geared to squeezing a profit at all costs made millionaires of many employees, while those who were not deemed worthy simply vanished from the trading rooms, no questions asked. Enron was and is the dark star of the energy industry.

For his part, Lay became an international corporate celebrity, advising President Bush on his campaign and taking a lead role with Vice President Dick Cheney on the administration's controversial energy plan earlier this year.

But Enron's attempt to extend its dominance into the telecom industry and its secretive financial structure finally got the best of it. The unexplained resignation of its chief executive in August, the ouster of its chief financial officer last week and the company's inability to prove its financial health have prompted investors to bail out of Enron stock like jackrabbits escaping a brushfire.

Now Lay & Co. are busy trying to raise cash from a skeptical Wall Street that is starting to admit it never understood the business in the first place (sound familiar?). Takeover speculation gave Enron shares a boost Wednesday, helping it end a 10-day losing streak. But it's unlikely anyone is going to step into this mess before a Securities and Exchange Commission investigation into its finances yields a few more answers.

For investors, a short-term rally beyond the jump Wednesday is still possible now that all of the big mutual funds have dumped the shares. But at a closing price of $13.90, Enron shares are more than a Texas mile from their 52-week high of $84.88 last December.

For Enron itself, it's time to put its cards on the table with regulators and Wall Street. As the Drexel saga showed, a strategy of defiance to the end only hastens the end.


Hi Jeff:

I'd love to sit down and talk with you in more detail about your decision to
leave Enron. If at any point you feel comfortable talking about it, how
about doing so in the Chronicle?

I'm sure you're aware of the speculation and rumors out there and how that's
hurting the stock. Talking to me would be an opportunity for you to stop the
negative chatter.

Aside from that, I think there's a genuine interest in the community in your
decision. I'm sure there are plenty of executives at other companies who
would love to read to about it, and wish they had the guts to do what you
did.

End of pitch.

Laura

Laura Goldberg
Business Reporter
Houston Chronicle
713-220-7207
713-354-3419 (fax)


USCAA Track & Field Championships, June 9, 2001
The Enron Running Club is seeking runners, sprinters, discus & shot put
throwers, and high jumpers & long jumpers to compete in the annual USCAA
Track & Field Championships on Saturday, June 9th at Rice University.
Participate in co-ed track relays & field events of all ages and abilities;
showcase your energy and talents in a challenging, competitive, and fun
environment; participate in an Enron tradition since 1994; experience
teambuilding and camaraderie like never before!  For more information or to
sign up, contact Cindy Richardson at x3-4770 or sprint to:
http://home.enron.com:84/erc/index.html

Heights Fun Run 5K
Join the Enron Running Club at the Heights Fun Run 5K benefiting The Houston
Heights Association,s Community Projects scheduled for Saturday, June 2nd.
If you,re interested in running or volunteering your time, please contact
Cindy Richardson at 713-853-4770 or Kelly Lombardi at 713-345-5841.  For more
information, run to: http://home.enron.com:84/erc/index.html.

Dad,s Day 5K
Join the Enron Running Club at the Dad,s Day 5K and 1 Mile Family Walk
benefiting The Prostate Cancer Research and Awareness scheduled for Saturday,
June 2nd.  If you,re interested in running or volunteering your time, please
contact Cindy Richardson at 713-853-4770 or Kelly Lombardi at 713-345-5841.
For more information, run to: http://home.enron.com:84/erc/index.html.

Stop by for some Texan BBQ, fresh air and Entertainment at Antioch Park

The Assist The Officer Foundation (ATO), a non-profit organization working
independently,  is inviting all Enron employees to come by Antioch Park  on
Friday, June 1st from 11am - 1pm and enjoy a delicious plate of BBQ for only
$5.  Come and listen to the tunes of KRBE with Gabe, their mobile DJ, and
raffles with many prizes will be given away.  Raffle tickets will be $2 each
or 3 for $5.  ATO is dedicated to assisting Houston peace officers injured or
disabled in the line of duty.  Please come out and support your local law
enforcement professionals.

The Caladium plants that are in the huge plant pots throughout the Plaza are
going to be replaced and will be available for purchasing on Monday, June 4th
for $4.00 in the Plaza by the up escalator from 11 a.m. to 12 p.m..

Join us in Dublin or Honolulu ----Joints in Motion is a marathon training
program for walkers and runners that is aligned with a fundraising effort for
the Arthritis Foundation.  The Dublin Marathon will be held Oct. 29 and the
Honolulu marathon will be December 9.  Please call for more information at
713-529-0800.

Volunteer for the Boys & Girls Club Summer Camp Weekends!!!
Kevin Hannon, Boys & Girls Club board member, invites you to join Enron
employee John Cote at a Boys & Girls Club summer camp who is looking for
commitment from a FEW GOOD ENRON MEN AND WOMEN:

WHAT:   2nd Annual Houston Boys and Girls Club / Enron Summer Camp Weekend (2
camps)

WHEN:   Boys Camp
  Friday afternoon (3:00 - 6:00pm), June 22 through Sunday afternoon, June 24
  --OR--
  Friday afternoon (3:00 - 6:00pm), July 20 through Sunday afternoon, July 22

  Girls Camp
  Friday afternoon (3:00 - 6:00pm), July 6 through Sunday afternoon, July 8
  --OR--
  Friday afternoon (3:00 - 6:00pm), July 13 through Sunday afternoon, July 15

WHERE: Willis, TX (75 minutes from downtown Houston -- just north of Conroe)

WHO:   6-8 counselors per camp to chaperone 75 boys (ages 7-16)

HOW:   Share all sports activities, including canoeing, hiking, fishing,
organizing a talent    show/bonfire/ghost stories, obstacle course, water
balloon fights, softball, basketball,   archery, football, etc.  (Cooking and
clean-up covered by the Houston Boys Club staff.)

CONTACT: John A. Cote at ext. 33830

SPREAD THE WORD.  SPOUSES & OFFICE COLLEAGUES WELCOME.
LAST YEAR'S CAMP WAS A HUGE SUCCESS!

Volunteers Needed for Bring Your Child to Work Day!

Bring Your Child to Work Day is Friday, June 29

Please email Jennifer Milligan if you are interested in volunteering and
indicate your preference in the below activities:

Registration Table
Houston Police Dept / Stranger Danger / Fingerprinting
Outdoor Activities (SPCA pets, Balloon King, kids crafts, etc.)
Business Etiquette class
Business Art (kids' resumes, etc)
Lunch ticket sales/coordination (in Antioch Park)

The Enron Running Club and the Houston Corporate Athletic Association are
seeking volunteers to assist at the annual USCAA Track & Field Championships
on Saturday, June 9th at Rice University.  There are many volunteer
opportunities requiring little or no experience including timers, scoring,
lane judges, cheering on athletes and more!  We are looking for employees,
families and friends that can contribute a few hours or who are willing to
spend the day benefiting a great cause.  If you are interested or would like
more information, please contact Kelly Lombardi at x3-8491.

Many volunteers are needed to help with the planned activities for the Enron
Children on June 29th.  If you're interested, send your name and phone
extension to workperks.enron.com.

Support KidSave and Help Miracles Happen. Every Summer.

Kidsave,s  Summer Miracles Program enables orphaned children ages 5 to 11 to
travel to the  US and Canada, live with families and attend day camp. The
program gives  families who may be concerned about the problems of adopting
an older child a chance to meet, get to know and in the best-case scenario,
fall in love with a  child. The program gives prospective parents an
opportunity to see and evaluate  first-hand the challenges and rewards of
adopting an older  child.

In 1999 and  2000 Kidsave and adoption agency partners placed 432 children -
96 percent of  children who participated in the program. Generally, 85 to 90
percent of  children who participate in the program find homes easily through
the program.  The remaining 10 to 15 percent require more work.

Kidsave  believes every child deserves a family. We are committed to placing
all children  who participate in the Summer Miracles Program in permanent
families or  family-like environments.

We are looking  for families to host children, and for others who want to
help us make the camp  program happen for these 250 children.   As a
non-profit organization, Kidsave depends on donations to raise the  money to
bring these children here and find them families.  Please call Tonya Hoppe at
281.286.8948  or tonya@tonya.cc to get involved in Houston,s  Kidsave
program.

Find Out how to Join The Downtown Club May 29 & 30!
The Downtown Club (formerly The Met-Business & Sports Club)Membership
representatives from The Downtown Club will be in the Enron Plaza
Tuesday-Wednesday, May 29-30, from 11 am - 1 pm to discuss membership, the
new "Signature Gold" program (see attached file for more information), and a
new membership referral program.  Don't miss out on this opportunity to join
the Downtown Club or to upgrade your current membership.  As a reminder, a
$200 initiation fee is required for new memberships.   For more information,
contact The Downtown Club Membership Services department at 713-652-0700 or
Georgia Fogo, ext. 3-5609.

http://home.enron.com:84/messaging/siggoldcourses.pdf

Enron and Kidventure Camps are proud to bring you Camp Enron Summer 2001.
Celebrating our third year, Camp Enron  will once again be providing summer
camp for children, ages 5-13, of Enron employees and contractors.

This year, camp will be May 29-August 10.  Ten, one-week sessions will be
available and families may choose to attend any or all sessions.  Each camp
week is Monday through Friday.

The cost is $150 per week and includes all transportation, field trips and
activities.  A deposit of $50 per week is all that is needed to reserve your
sessions.   The deadline to register is Monday, May 21.

To register, log on to: http://www.kidventurecamp.com/camp_enron.htm.
Spaces are limited.

Enron parents simply ride to work with  their children and check them in to
the Energizer in the morning with the Camp Enron Team.  Enron Campers are
loaded on Coach USA Buses and transported to our nearby camp. At the end of
the day campers are brought back to the Energizer for parents to check out.

It's that easy!

For more information please contact:

web site: www.kidventurecamp.com
call Kidventure: 713.960.8989
e-mail: camps@kidventurecamp.com

Have News to Share?
To post news or events in Enron In Action, please e-mail your information to
EIA@enron.com
no later than 12:00 noon the Thursday prior to the next Monday,s mailing.


Hello, Enron.


Start Date: 3/7/01; HourAhead hour: 5;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030705.txt
###Cannot locate a Preferred or Revised_Preferred Schedule that matches the
FINAL Individual Interchange Schedule.  Unable to assign deal number.


[IMAGE][IMAGE]

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[IMAGE]

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Don't  delete. This is your $10 Amazon.com promotional certificate.

Amount: $10 off your order of $50 or more at Amazon.com
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Expires: June 17, 2001

To redeem your $10 promotional certificate, simply:

1. Go to Amazon.com.
2. Select the items you want (totaling $50 or more, not including shipping
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This promotional certificate will expire at 11:59 p.m. PDT on June 17,  2001.

If you have any questions, please see the Help section of our site:

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Please note  that this e-mail was sent to the following address:
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talk to Kim

 -----Original Message-----
From: 	"Fenner, Chet" <Chet_Fenner@bmc.com>@ENRON [mailto:IMCEANOTES-+22Fenner+2C+20Chet+22+20+3CChet+5FFenner+40bmc+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Monday, June 04, 2001 3:53 PM
To:	Parks, Joe
Subject:	Wed Night?

Is there a group even planned?  Erik's gone, and not sure if there was a
dinner planned or not.  Do you know?


how bouts we eat something healthy for dinner?  i'm thinking about trying to go to the store right after work.
how does a tossed salad w/ tomatoes/mozzarella and balsalm vinegar sound....and then maybe some sort of something else...sauted breast of chick??

I will be busy baking the cake.  I am just crossing my fingers that the oven doesn't wig out on me mid cake..........you might have to sedate me if that happens.
We'll talk later.
L-mo


Mark:

Should we amend the "Procedures for Entering into Transactions" in the RMT masters to provide for paperless transactions?

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490


I have made some adjustments to the other income piece

Rod Hayslett
EB4054
713-853-6178


Kam,
Here is a list of our books.  I included text files as books.


Dear Members:

NESA is pleased to be holding its 3rd Annual Benefit Golf Tournament on
Monday, March 18th, 2002 at the prestigious Champions Golf Club.  Proceeds
will again benefit The Sunshine Kids Foundation.

This is your opportunity to secure a corporate ($2000) or individual ($500)
sponsorship which includes a foursome or a single tee time, respectively for
this outstanding tournament and great cause.  Attached are registration
forms.

NESA has been proud to donate over $50,000 in the last two years to local
charities through this tournament, and we need your help to continue to do
so.  If you have any questions, please feel free to email me or call me at
713/856-6525.

Don't forget about our mixer on Thursday, January 31st at the Boaka Bar
downtown. No cover, first drink free - can't beat it!  RSVP to me if you can
make it.  Visit their website for directions at
www.mercuryroom.com/boaka/boaka.html

TERESA A. KNIGHT
Vice President, Member Services
teresa.knight@nesanet.org
(713) 856-6525
Fax (713)856-6199

 <<INVITE LETTER - INDIVIDUAL REGISTRATION FORM.doc>>  <<INVITE LETTER -
SPONSOR REGISTRATION FORM.doc>>


I'm sorry, I forgot that you were clairvoyant.  I don't think you can make a
case that you were smart for betting me without the points.  That's like me
saying that Enron's stock is trading at 70 why don't I buy it for 80 b/c I am
confident that it is going to 90.

That's real smart.  No wonder EES loses money!

	Enron North America Corp.

	From:  Timothy Blanchard @ EES                           03/20/2000 10:14 AM

To: Eric Bass/HOU/ECT@ECT
cc: Matthew Lenhart/HOU/ECT@ECT, Chad Landry/HOU/ECT@ECT
Subject: Re:

Going below the belt?  If that makes you feel better, because you were wrong
about your team and conference AGAIN, so be it.  There are still seats
available on the bandwagon.  The fee is only $50.  How smart you were to bet
me without giving any points - definitely worth bragging about.

Eric Bass@ECT
03/20/2000 09:29 AM

To: Timothy Blanchard/HOU/EES@EES
cc: Matthew Lenhart/HOU/ECT@ECT, Chad Landry/HOU/ECT@ECT
Subject: Re:

how was the well this weekend?

	Enron North America Corp.

	From:  Timothy Blanchard @ EES                           03/20/2000 08:52 AM

To: Eric Bass/HOU/ECT@ECT, Chad Landry/HOU/ECT@ECT, Matthew
Lenhart/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT,
Brian Hoskins/HOU/ECT@ECT
cc:
Subject:

One other thing...

Teams in the Sweet 16

SEC - 3
Big 12 - 2

Bass, not working out the way you thought it would, huh?


Aisha,

The person to contact is Christie Patrick who is in charge  our University
Relations
Office. Her E-mail address is:  christie_patrick@enron.com.

I shall forward your message to Ms. Patrick.

Vince

Aisha Jamal <aisha@uh.edu> on 04/23/2001 03:15:29 PM
Please respond to aisha@uh.edu
To: vkamins@ect.enron.com
cc: mmfoss@uh.edu
Subject: Dr. Michelle Foss- Energy Institute

Dear Mr. Kaminski,

I am writing to ask a favor for Dr. Michelle Foss. As you know we will
be running our "New Era" program from May 14- May 25th. Dr. Foss was
wondering if on May 22nd (between 1:30pm and 4:00pm) , we would be able to
bring
our participants for a tour of your trading floor. At this time we will have
30-40 people, and since only 10 people maximum should really be on a
trading floor we need to have 4 companies among which to divide our
participants. At this time, we have a floor from Coral Energy, and are
working with Duke,
and I will be contacting Mr. Paul Roberts to arrange for the Reliant Energy
trading floor. I was hoping very much that you would be able to direct
me to the right person to contact to arrange this tour. Will this be a
possiblity? I really appreciate your help very much. Thank you!

Best Regards,

Aisha Jamal
Energy Institute
713-743-4634


Heather -

Thanks for the information.  At this time, we prefer to use our form documents.  I understand that Tana is currently working on the NDA for this company, based upon information Erica provided.  As to the form of agreement, I can probably have something by the end of the day tomorrow for 2Advanced.com to look at.  Please let me know what the "agressive" schedule is.

Thanks.

Mark

 -----Original Message-----
From: 	Alon, Heather
Sent:	Wednesday, October 17, 2001 5:34 PM
To:	Greenberg, Mark
Subject:	Design Agency for EnronOnline
Importance:	High

Hi Mark,
	As Erica mentioned, we are going to move forward with 2advanced.com to redo the EnronOnline website.  I will be the primary point of contact between Enron and the agency, but please cc Erica Bess as well. Here is the contract and the two-way NDA 2advanced.com sent over.  True to Enron form, we are pushing a very aggressive schedule, so please let me know if you need any other additional information or if I can be of any assistance in any way.

  << File: Enron Services Agreement.pdf >>  << File: Non-Disclosure Agreement - Enron.pdf >>

Thanks,
Heather

 -----Original Message-----
From: 	Bess, Erica
Sent:	Wednesday, October 17, 2001 10:09 AM
To:	Greenberg, Mark
Cc:	Jones, Tana; Alon, Heather
Subject:	RE: Design Agency for EnronOnline
Importance:	High

Tony Novak

2Advanced Studios
34145 Pacific Coast Highway, #327
Dana Point, CA 92629-2808

Tel: 	949.443.2112
Fax:	949.443.2122

 -----Original Message-----
From: 	Greenberg, Mark
Sent:	Wednesday, October 17, 2001 10:04 AM
To:	Bess, Erica
Cc:	Jones, Tana
Subject:	RE: Design Agency for EnronOnline

Erica -

Please provide me with the necessary information on the company (e.g., contact name, address, etc.).  I'll make sure that we get the confidentiality agreement moving forward.

Thanks.

Mark

 -----Original Message-----
From: 	Bess, Erica
Sent:	Wednesday, October 17, 2001 9:10 AM
To:	Greenberg, Mark
Cc:	Alon, Heather
Subject:	Design Agency for EnronOnline
Importance:	High

Mark -

We have selected 2Advanced Studios as the agency to do EnronOnline's redesign.  Please prepare a Non-Disclosure Agreement for them and let me know what other documents we need and how to proceed.

Their mailing address is 34145 Pacific Coast Highway, #327, Dana Point, CA 92629-2808.  Our point of contact is Tony Novak.

Thanks,
Erica
x3-5159


damn, thought you forgot

-----Original Message-----
From: Lavorato, John
Sent: Monday, October 15, 2001 12:15 PM
To: Arnold, John
Subject: RE:

plus 50 for the minni bet 185

-----Original Message-----
From: Arnold, John
Sent: Monday, October 15, 2001 11:16 AM
To: Lavorato, John
Subject: RE:

5-3-2
+255 - 120 = 135 your way

-----Original Message-----
From: Lavorato, John
Sent: Saturday, October 13, 2001 9:25 AM
To: Arnold, John
Subject:

i owe you 120 - wow

all 150

balt -1
tb +3
chic/ariz over 39.5
car +5
giants +11
sd +3
sf -3
miami -3
seattle +6.5
oak +3.5


Scott--

Would you please include my name on all future e-mails.
I am the real time NY/NE trader.

LC


Here you go!  Anything you think we need to add?  You in Houston today?  I'm
working from home -- my dad's in town until tomorrow, so I'm supervising some
"daddy dos."   :-) kd

---------------------- Forwarded by Karen Denne/Corp/Enron on 04/30/2001
02:01 PM ---------------------------

Janel Guerrero
04/30/2001 02:05 PM
To: Karen Denne/Corp/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron
cc:

Subject: Talking points

Plz give Dasovich a copy of the talking points for Ken's bb.  thanks


When: Wednesday, April 25, 2001 3:00 PM-5:00 PM (GMT-06:00) Central Time (US
& Canada).
Where: EB3335

*~*~*~*~*~*~*~*~*~*


Jeff,

Thanks for a great speech at the Barcelona Directors' Conference last Fall.
It was most inspiring and insightful.

I am returning to you with another request, which you, unfortunately, had
to turn down last year because of a Board meeting scheduling conflict but
that I hope you can make this time. We would very much like you to
participate in the Sanderst?len Conference in Norway, February 6-9, 2002,
as keynote speaker. While you are invited to stay for the entire conference
(your spouse is also invited), the preferred speaker dates are Wednesday,
February 6 or Thursday, February 7.

Among other confirmed speakers are Phil B. Watts (Shell), J.J. Mulva
(Phillips), Thierry Desmarest (TotalFinaElf), Burckhard Bergman (Ruhrgas),
Euan Baird (Schlumberger), Olav Akselsen (Norwegian Energy Minister). The
audience will consist mostly of top business executives in the
international energy industry. Participants are limited to 110 to preserve
the extraordinary atmosphere that characterizes the Conference.

Should you be willing to come, I would also suggest that you set aside some
time so I could arrange a couple of meetings with key energy executives in
the Nordic area. Olav Fjell, Statoil's CEO, would be eager to see you to
compare notes on opportunities in the European gas markets. As you know,
the company is being part-privatized as of June 18, and they will be
looking for cooperative arrangements. Also, several power-focussed
companies, such as V?ttenfall, Fortum and Statkraft would like to have
discussions with you. Most of the people mentioned above, will be at the
Conference.

I hope you are able to take this opportunity of combining speaking,
one-on-one discussions with a few top leaders at the same time as enjoying
a bit of Norwegian nature (you can go skiing at Sanderst?len!).

Best regards

Tore

(See attached file: Sanderst?len2001participants.doc)(See attached file:
Sanderst?leninfo2002.doc)

+-------------------------------------------------------------+
| This message may contain confidential and/or privileged     |
| information.  If you are not the addressee or authorized to |
| receive this for the addressee, you must not use, copy,     |
| disclose or take any action based on this message or any    |
| information herein.  If you have received this message in   |
| error, please advise the sender immediately by reply e-mail |
| and delete this message.  Thank you for your cooperation.   |
+-------------------------------------------------------------+
 - Sanderst?len2001participants.doc
 - Sanderst?leninfo2002.doc


Phil:

I was just checking to see when we would execute the amendment to the
Security Agreement (to permit the rehypothecation of securities).  Please let
me hear from you.

Regards,

Sara


http://www.pge.com/cgi-bin/pipeline_gasinv.pl#storage_forecast,
'enehou\houston\appsrw\webcontent\gastrading\west_desk\logistics\pge.xls.

this is the website and path to the file.


yes...please change griffith to trading.
thanks,
john


he'll call in.... do you have any ideas


Do I need to do anything re: this?  Thanks. DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/21/2000
10:56 AM ---------------------------

"Rowena Mapile" <Rowena.Mapile@groupwise.swgas.com> on 01/19/2000 12:58:26 PM
To: Drew Fossum/ET&S/Enron@ENRON, gfastuca@enron.com, Julia
White/ET&S/Enron@ENRON, mmcgowan@enron.com, Michel Nelson/ET&S/Enron@ENRON,
Rocky Jones/HOU/ECT@ECT, Steven Harris/ET&S/Enron@ENRON
cc:

Subject: PCGA Workshop Invitation

Please see attached...

 - First E-Mail to Event Registration Team Members.doc


Ken:

It is my understanding that we must get approval from the Office of the
Chairman to utilize the company aircraft for personal use.

My family is holding a Holiday Reunion in Atlanta December 18-23.  Debbie and
I would like to fly to Atlanta and back on Friday, December 22, with our
children.  The twins, Jason and Jessica, are a little bit too young yet to
try the commercial airlines, which is why I am requesting to use a company
aircraft.

Of course, we would only secure a plane if it is NOT needed for business
purposes that particular day and would be subject to company policy on all
charges.

No problem if this doesn't work!

Stan


Attached is "Annex B.doc" which we use to prepare Annex B which contains the
credit provisions we attach to a Confirmation when such is requested for
omnibus financial confirmations.  About mid-way through the US Annex B is
about 4 selections of collateral annexes depending on whether the credit is
one-way or two-way and whether the collateral requested is letters of credit
only or letters of credit and cash.  Following that is form of letter of
credit.  We have an Annex B form for US counterparties and Canadian
counterparties.  I have attached both.   The law in Canada currently does not
favor taking cash in Canada and WE DO NOT TAKE CASH (this obviously is quite
problematic for us!).  Our current advice from Canadian counsel is that Cash
must be perfected in a way similar to filing a UCC.  The Canadian and US
lawyers are re-reviewing this situation and I will let you know when/if this
advice changes.

	Karen A Cordova@EES
	05/21/2001 10:00 AM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: Credit Support Annex

Tana -

Does a Credit Support Annex exist for transactions perfected on the long form
(omnibus) confirmation?  Is there such an animal?  If you have something like
that, can I get a copy?

Thanks again, Karen


Thanks for your help.  This should work well, assuming Chris and Steve are
available.  Hopefully Lexi will have resumes for you tomorrow.  I will be in
touch on details.
---Original Message-----
   >From:      Ashley Baxter/Corp/Enron
   >To:          Sally Beck/HOU/ECT@ECT
   >Cc:          Beth Perlman/HOU/ECT@ECT
   >Bcc:
   >Subject:      OU Candidates
   >Date:     Wednesday, November 08, 2000 1:11 PM
   >
   >Sally,
   >
   >I just left a message with Chris Hanz and Steve Stock who are both Sr.
   >Directors under Beth Perlman.  Given the office visit schedules - Chris
   >and Steve will likely only be available at the following times:
   >
   >Chris to meet with Chris Hoyle  After 10:30 a.m.
   >Steve to meet with John Rodgers From 1:00 p.m. - 1:30 p.m.
   >
   >
   >I will let you know as soon as I hear from them and confirm.
   >
   >Thanks,
   >Ashley
   >33589


- Garp2002.ppt


Outlook Migration Team@ENRON
05/14/2001 01:26 PM
To: V Charles Weldon/HOU/ECT@ECT, Ed McMichael/HOU/ECT@ECT, Eric
Boyt/Corp/Enron@Enron, Eric Moon/HOU/ECT@ECT, Geraldine Irvine/HOU/ECT@ECT,
Jin Guo/HOU/ECT@ECT, Louis Dicarlo/NA/Enron@ENRON, Maria Garza/HOU/ECT@ECT,
Mark Breese/HOU/ECT@ECT, Sandy Olitsky/HOU/ECT@ECT, Santiago
Garcia/NA/Enron@Enron, Steven Curlee/Corp/Enron@Enron, Alexandra
Villarreal/NA/Enron@ENRON, Andrea Ring/HOU/ECT@ECT, Brad McKay/HOU/ECT@ECT,
Chris Germany/HOU/ECT@ECT, Scott Hendrickson/HOU/ECT@ECT, Eric
Thode/Corp/Enron@ENRON, Jennifer Walker/NA/Enron@Enron, Judy
Townsend/HOU/ECT@ECT, Kathie Grabstald/HOU/ECT@ECT, Kimberly
Bates/HOU/ECT@ECT, Mark Koenig/Corp/Enron@ENRON, Peter F Keavey/HOU/ECT@ECT,
Rebecca Ford/HOU/ECT@ECT, Sandra F Brawner/HOU/ECT@ECT, Scott
Goodell/Corp/Enron@ENRON, Scott Neal/HOU/ECT@ECT, Sean
Boyle/Corp/Enron@ENRON, Susan W Pereira/HOU/ECT@ECT, Victoria
Versen/HOU/ECT@ECT, Vladi Pimenov/NA/Enron@Enron, Craig Taylor/HOU/ECT@ECT,
David Jones/NA/Enron@ENRON, Frank W Vickers/NA/Enron@Enron, Gil
Muhl/Corp/Enron@ENRON, John Hodge/Corp/Enron@ENRON, Maureen
Smith/HOU/ECT@ECT, Nelson Ferries/Corp/Enron@ENRON, Phil
DeMoes/Corp/Enron@ENRON, Robin Barbe/HOU/ECT@ECT, Ruth Concannon/HOU/ECT@ECT,
Tammi DePaolis/Corp/Enron@ENRON, Daniel Lisk/NA/Enron@Enron, Hillary
Mack/Corp/Enron@Enron, Jan Sutherland/NA/Enron@ENRON, Jason
Wolfe/NA/Enron@ENRON, Shannon Groenewold/ENRON@enronXgate, Shelly
Mendel/NA/Enron@ENRON, Stacey J Brewer/HOU/ECT@ECT, Suzanne
Christiansen/HOU/ECT@ECT, Ted Evans/NA/Enron@ENRON, Dina
Snow/Corp/Enron@Enron, Kay Young/HOU/ECT@ECT, Lance
Schuler-Legal/HOU/ECT@ECT, Vineet Arora/NA/Enron@ENRON, Beth A
Ryan/HOU/ECT@ECT, Bill Berkeland/Corp/Enron@Enron, David A
Terlip/Corp/Enron@Enron, Doug Leach/HOU/ECT@ECT, Marc De La
Roche/HOU/ECT@ECT, Randal Maffett/HOU/ECT@ECT, Tushar Dhruv/Corp/Enron@Enron,
Yolanda Cordova-Gilbert/HOU/ECT@ECT, Amy Villasenor/OTS/Enron@Enron, Debra
Young/OTS/Enron@Enron, Jeff Arnold/OTS/Enron@ENRON, John
Reese/FGT/Enron@ENRON, Josh Mayes/OTS/Enron@Enron, Larry
Fenstad/OTS/Enron@ENRON, Mark Adleman/OTS/Enron@ENRON, Mary Ann
Johnson/OTS/Enron@ENRON, Mary Lynne Dix/OTS/Enron@Enron, Mike
Thomas/OTS/Enron@Enron, Morris Brassfield/OTS/Enron@ENRON, Rinetia
Turner/OTS/Enron@Enron, Robert Geheb/OTS/Enron@Enron, Ruthann
Frausto/OTS/Enron@ENRON, Tyrone Brown/OTS/Enron@ENRON
cc:
Subject: 2- SURVEY/INFORMATION EMAIL 5-17-01

Current Notes User:

To ensure that you experience a successful migration from Notes to Outlook,
it is necessary to gather individual user information prior to your date of
migration.  Please take a few minutes to completely fill out the following
survey. Double Click on document to put it in "Edit" mode. When you finish,
simply click on the 'Reply With History' button then hit 'Send'  Your survey
will automatically be sent to the Outlook 2000 Migration Mailbox.

Thank you.

Outlook 2000 Migration Team

------------------------------------------------------------------------------
--------------------------------------------------------------

Full Name:        Susan W. Pereira

Login ID:  spereir

Extension:  33229

Office Location:  EB3223F

What type of computer do you have?  (Desktop

Do you have a PDA?  If yes, what type do you have:   (None

Do you have permission to access anyone's Email/Calendar?  no
    If yes, who?

Does anyone have permission to access your Email/Calendar?  no
    If yes, who?

Are you responsible for updating anyone else's address book?  no
    If yes, who?

Is anyone else responsible for updating your address book?  no
    If yes, who?

Do you have access to a shared calendar?  no
    If yes, which shared calendar?

Do you have any Distribution Groups that Messaging maintains for you (for
mass mailings)?  no
    If yes, please list here:

Please list all Notes databases applications that you currently use:  mailbox

In our efforts to plan the exact date/time of your migration, we also will
need to know:

What are your normal work hours?  From:  7    To:      5

Will you be out of the office in the near future for vacation, leave, etc? no
       If so, when?        From (MM/DD/YY):      To (MM/DD/YY):


What is your new cell number ?
I tried to call you to see what you would like Thanksgiving ...
Besides HoneyBaked Turkey and Cornbread Stuffing ...we need to choose more items...your choices are:

Potatoes Au Gratin
Sweet Potato dish  (which is very good !)
Broccoli Rice Casserole

Dessert:
Pumpkin Pie
Cheese Cake
Both !

What would you like ?


Elizabeth:  here is the PECO e-mail I referred to.  After skimming it, I
realize that if you find it at all worthwhile, you may ask to see a copy of
the PECO/Great Bay lawsuit and the agreement involved.  I'll see if Nellie
can locate that as well.  John

"This e-mail, including attachments, contains information that is
confidential and it may be protected by the attorney/client or other
privileges.  This e-mail, including attachments, constitutes non-public
information intended to be conveyed only to the designated recipient(s).  If
you are not an intended recipient, please delete this e-mail, including
attachments and notify me by return mail, e-mail or by phone at 212
424-8125.  The unauthorized use, dissemination, distribution or reproduction
of the e-mail, including attachments, is prohibited and may be unlawful.

John Klauberg
LeBoeuf, Lamb, Greene & MacRae, L.L.P.
212 424-8125
jklauber@llgm.com
Content-Transfer-Encoding: quoted-printable
Date: Tue, 27 Oct 1998 12:35:23 -0500
From: "JOHN G KLAUBERG" <JKLAUBER@LLGM.COM>
To: esager2@ect.enron.com
cc: stweed@ect.enron.com
Subject: Marketing Arrangements
MIME-Version: 1.0
Content-Type: text/plain;  charset=us-ascii
Content-Disposition: inline

Elizabeth:

Following up on our conversation last week, I have an associate pulling some
of the relevant authority on the fiduciary duty/principal--agent issues we
discussed in the context of some of the deals ECT is considering with respect
to marketing the output of generation units of third party owners.  We should
be able to get back to you this week with our thoughts in that respect and we
will forward to you the major authorities, articles, etc.  that we come up
with.

My sense of the market is that it is likely that ECT may be approached by
many owners of power plants as the markets further deregulate and some of the
owners of "hard assets" realize that they do not have the resources necessary
to participate in the wholesale power markets.  And, with the further market
participant fall-out to come (witness PacifiCorp's retrenchment announcement
on Friday), ECT could end up with a larger share of this market perhaps
resulting in multiple deals with third parties, even parties whose facilities
may be viewed in competition with one another (based on load pockets, grid
interconnection, etc.).  I agree with you that these deals carry a lot of
legal risk because of ECT's commanding presence in these markets.

In addition, I found the PECO marketing contract with Great Bay Power ("GBP")
that, as you know, resulted in litigation earlier this year.  I faxed it to
you this morning along with a copy of the complaint that GBP filed against
PECO earlier this year.  Set forth below are a few of the key aspects of the
PECO/GBP Contract that I thought you might find of interest, including some
of the contract language that bears on the fiduciary duty/ principal-agent
considerations.  I thought it made sense to focus on some of these, not
because it is a great contract, but I think it illustrates many of the
concepts that your commercial people may wish to employ in the proposed
marketing deals they are currently examining.  Further, you will see how many
of the key provisions dealing with the key legal concepts are either unclear
or confusing or never really addressed.

1.  Term; Exclusive Agent Relationship.  The Contract was for an initial term
of 2 years.  PECO is designated to act as GBP's exclusive agent in marketing
the power from GBP's only asset; namely, its interest in the Seabrook nuclear
plant.  Except as noted in Paragraph 2 below, GBP could not sell to customers
without PECO's consent.  GBP apparently sought the PECO deal since it needed
a party to "firm up" its sales; that is, it needed a party to back up its
Seabrook power in the event Seabrook went down.  GBP retained title to all
power until title passed to third parties.  Of further note is that in
connection with the contract PECO also received a warrant to purchase up to
4.9% of the stock of GBP.  (This is similar to what ECT proposed with El Paso
a year or so ago, but ECT proposed a warrant to purchase a greater percentage
of the stock of El Paso.)  Note that the 4.9% limit is '35 Act driven.  More
than 4.9% would be a "second bite" under the '35 Act that would require prior
SEC approval and, in addition, could be problematic for PECO under the
limitations of such Act.

2.  PECO's Authority to Effect Deals for GBP.  PECO could effect transactions
for GBP, although it could not execute deals of  more than a year in duration
without GBP's consent.  PECO also had the right to negotiate "on behalf of"
GBP enabling agreements (such as those necessary to effect NEPOOL
transactions), although those agreements would only become effective upon
GBP's consent (which could not be unreasonably withheld).  Notwithstanding
the foregoing, GBP could cause PECO to offer a sale of power on terms
directed by GBP if the sale was for longer than six months, provided GBP
could not require PECO to firm up such sale.  If PECO felt this was not the
best course of action, it could terminate the Contract.

3.  PECO Standard of Care.  Sec. 4(a) of the Contract provides that "PECO
shall use 'reasonable best efforts' to arrange for the sale of the [GBP
Power]" and that it "shall use the same care and diligence in arranging
Transactions [involving the GBP power] as it uses in the sale of capacity
and/or energy owned by PECO."  PECO was authorized and required to use
"reasonable judgment" during the negotiation and scheduling of transactions
under the Contract.

4.  Conflicting Sales Opportunities.  Sec. 4(c) denominated "Bundling of
Initial Power Amount" is of particular interest.  Effectively, this provision
requires that if some of the GBP power is available but not committed and
PECO has other NEPOOL power available to it that can be used to effect a
sale, then PECO shall be obligated to serve each such sale with both the GBP
power and its own NEPOOL resources "until the [GBP power] is fully
utilized."  It is not exactly clear how this provision is intended to work,
but I would assume that if PECO located a candidate for a sale transaction
and PECO could use its own NEPOOL power  (defined as "Other NEPOOL Supply")
to serve it or, alternatively, it could use the GBP power, then PECO would
have to make the sale using both sources of power.  It is not clear whether
PECO would have to apply the GBP first or whether a pro rata concept (perhaps
based on the ratio of the GBP power to the total power available) would be
permissible.  Obviously, this type of a provision would have major
implications for the considerations we have been discussing since ECT would
not want to be required either to use its counterparty's power first to make
a sale or to apply some form of pro rata concept (which would be incredibly
difficult to apply and a ticket to litigation).

5.  Notice of Conflicting Opportunities.  Sec. 4(d) of the Contract,
denominated "Economic Disincentive," similarly is interesting (and
confusing).  It provides, in effect, that if a portion of the GBP power is
uncommitted but PECO owns Other NEPOOL Supply and PECO would make more of a
margin by selling the Other NEPOOL Supply for its own account than effecting
a deal for the GBP power, then "PECO shall notify GBP of such
circumstances."  What is interesting is that it just requires PECO to notify
GBP; it does not appear that there is any restriction on PECO's right to sell
such power, except perhaps the restriction set forth in Sec. 4(c) above.
Perhaps the negotiators of the Contract know how these provisions tie
together, but it is not clear from the Contract itself.  This is very
surprising since one would think that it would have been in both parties'
interests to make it absolutely clear how the fiduciary duty/corporate
opportunity responsibilities were to be handled.

6.  Compensation.  With respect to compensation, PECO paid GBP a "reservation
fee" in consideration of GBP retaining PECO as its exclusive agent, which was
based on a $ per MWh basis.  GBP paid a "service fee" to PECO based on a % of
net sales revenues.  (It really wasn't on a net basis, however, since it
effectively was based on gross revenues less transmission and ancillary
services costs).

7.  Commitments for Future Opportunities.  Another interesting feature of the
Contract was the parties' commitments to engage in "future joint
opportunities."  For example, Sec. 13(a) states that "PECO shall be obligated
to provide Great Bay with the opportunity to participate in all purchases of
[additional favorably priced power from facilities in New England having a
term in excess of 1 year]." (Emphasis added).  As with many other provisions
of the Contract, it is not clear what happens if PECO and GBP do not agree on
the sharing of costs, revenues, etc. with respect to such additional
opportunities.

8.  Early Termination Rights.  In addition to termination for a breach of the
Contract, GBP could terminate upon 30 days notice prior to certain dates
(tied to the warrant expiration date).  PECO, as noted at paragraph 2 above,
could terminate on 90 days notice if GBP elected to effect a sale on its won
(that essentially PECO felt would not maximize the parties' profits).

9.  Choice of Law.  PECO was able to get Pennsylvania law to be the governing
law.  Presumably, this was a function of the fact that GBP had less
negotiating leverage and "needed" PECO to help it with firming up its sales.

10.  The Litigation.  In its complaint, GBP alleged, among other things, that
since inception of the Contract PECO only effected two firm energy
transactions for GBP.  In addition, it asserted that PECO entered into a
number of wholesale transactions for its own benefit, rather than in the name
of GBP.

I apologize for the length of this E-mail, but in light of the importance of
these issues to the deals ECT is considering, I thought it made sense to give
a flavor of the PECO/GBP contract.  We will be back to you later this week
with the outcome of our research.  Please call me if you have any questions
or need anything else.

John


Mike Grigsby will be out of the office today and tommorrow on vacation. If he needs to be reached, please let me know.

Ina Rangel
Administrative Coordinator
Enron North America
713-853-7257 Voice
713-646-3604 Fax


Ken,  Can you email me the particulars on Ted so we can put a consulting
agreement into place with him.  I need the following information:

Full Name
Address
Pay rate (Hourly/Daily+Expenses?)

I think that's all for now.  Thanks.


Paula,

Does not wok for me.

Vince

From: Paula Corey@ENRON COMMUNICATIONS on 04/17/2000 08:54 AM PDT
To: Vince J Kaminski/HOU/ECT@ECT, Anthony Mends/Enron Communications@Enron
Communications, Carl Livermore/HOU/ECT@ECT, Beth Perlman/HOU/ECT@ECT, Lou
Casari/HOU/EES@EES, Steve Lovett/Enron Communications@Enron Communications,
ametz@flash.net, Vanessa Carranza/Corp/Enron@Enron
cc:
Subject: Round  Table - Rescheduled

Ok - One more time ... Will Friday, May 19 work for everyone? Dinner at La
Mora 5:30 ish?
Please let me know and I will make reservations

Thank you

Paula