TITLE: CERA Monthly Oil Briefing: Fundamentals Update
E-mail Category: CERA Monthly Briefing
CERA Knowledge Area: World Oil

In the past two weeks, oil prices have sold off the premium or price strength
that had been built into the market in anticipation of possible shortages
this winter. The exact cause of the sharp switch in market psychology is hard
to pinpoint but seems to be a combination of very early signs that the oil
stock situation is at least stabilizing, even if stocks have not built
substantially, and that, thus far, despite a few weeks of colder-than-normal
temperatures, heating oil supply has been adequate to meet demand in the key
US market. That has allayed some of the concerns that were driving
speculative interest into the market. Furthermore, the potential for weakness
in the US economy may be creating expectations for weaker oil demand in 2001.

The change in market psychology was dramatically illustrated when news that
Iraq was cutting off exports caused prices to slide, yet, the Iraqi export
cutoff is having a concrete effect on fundamentals. If the cutoff lasts
through December, the effect will be pronounced-it would turn a projected
fourth quarter 2000 stockbuild of 0.5 million barrels per day (mbd) into a
stockdraw of 0.1 mbd. We expect Iraqi production levels to remain erratic
because of its dispute with the UN Security Council over sanctions, and
exports may again cease. At some point such a development would have a price
supportive effect.

CERA's price outlook for 2001 remains the same as that in the World Oil Watch
released in late November. Assuming normal winter weather and no prolonged or
repeated shutdowns of Iraqi production, the projected average for first
quarter 2001 is $29 per barrel for WTI. However, this outlook is based on
OPEC's announcing an agreement early in the first quarter to cut its
production by the start of the second quarter. A failure to restrain output
would result in a downward adjustment to an average of $27 WTI for the first
quarter of 2001, with prices lower in the second half of the quarter than in
the first. The downward pressure results from the prospect of a
larger-than-usual implied build in stocks during the second quarter of about
3.0 mbd-with a cut in OPEC output.

Iraq in a Twilight Zone
As anticipated, Iraq ceased exporting oil under the UN-controlled "oil for
food" program as of December 1 in protest over the rejection by the Security
Council's sanctions committee of its proposed December export price schedule.*

Iraq's pricing was judged by the UN overseers, who monitor the export program
and advise the sanctions committee, to be about 60 cents per barrel below
comparable crudes in an apparent attempt to offset an illicit surcharge that
Iraq was seeking from buyers.

Although the standoff with the sanctions committee continues, Iraq partially
resumed exporting on December 13. Since then, about 1 mbd has been exported
from the Mina al-Bakr terminal in the Persian Gulf. Prior to the shutdown,
Iraqi exports under UN auspices were at a rate of 2.21 mbd for November, as
compared with 2.08 mbd for the third quarter. Exports for November were about
1.3 mbd from Mina al-Bakr and about 0.9 mbd from Ceyhan in the Mediterranean.
Exports from Ceyhan have not resumed, owing to the surcharge dispute, with
the result that about 1.2 mbd of Iraqi crude remains off the market.

Iraq's semi-shutdown has put it into a kind of twilight zone while its
dispute with the sanctions committee over pricing continues. (In the midst of
this dispute, the UN Security Council approved phase nine of the oil-for-food
program at the last minute on December 5; it became effective on December 6
and has been accepted by Iraq). As of December19, Iraq's revised export price
for Ceyhan, proposed for the remainder of December, has again been judged too
low by the overseers and is expected to be rejected by the sanctions
committee. Additionally, the overseers have notified lifters of Iraqi crude
that any oil payment made directly to Iraq rather than to the UN escrow
account would be a violation of UN sanctions. Buyers of Iraqi oil from Mina
al-Bakr have consistently been reported as saying that they are not paying a
surcharge to Iraq.

How long Iraq may operate at about half capacity is unclear, but it continues
to request a surcharge payment from prospective lifters at Ceyhan in an
apparent effort to circumvent and degrade the UN financial controls that are
the heart of the sanctions system. The distinction that Iraq has made between
Mina al-Bakr and Ceyhan arose when it resumed operations at Mina al-Bakr by
loading two cargoes for the India Oil Company. Iraq may have judged this
accommodation to be in its interest, since it recently also signed an oil
exploration contract with India under which payments would be made in oil. As
currently structured, the deal would violate UN sanctions, but India is
seeking an exception from the Security Council on grounds of economic
hardship. The exception seems unlikely to be granted, which may lead Iraq to
cease exports from Mina al-Bakr again.

There are many possible scenarios that Iraq could follow, but we expect
uncertainty about Iraqi exports to continue as Iraq uses its oil exports as
leverage to undermine sanctions in its ongoing struggle with the Security
Council to end all restraints. Consequently, the Iraq factor will remain an
element in the oil price outlook.

Iraq's antisanctions campaign has also raised the visibility of the Iraq
issue in Washington as the incoming Bush administration prepares to take
office. Secretary of State-designate Colin Powell has already acknowledged a
need to reassess Iraq policy and has said that he would work to "reenergize"
sanctions. The Iraq issue is being debated in virtually every foreign
policy-oriented think tank in Washington. A consensus seems to be emerging
around seeking renewed international support and legitimacy for sanctions by
retaining UN control over Iraq's oil revenue and strictly enforcing a
prohibition on sales of weapons and related material while lifting general
trade controls that increasingly are both ineffective and an international
irritant. There is virtually no sentiment in favor of operations to
destabilize or remove the Saddam Hussein regime on the pragmatic basis that
the prospects for success are remote.

Demand Trends
Record high US natural gas prices have increased the economic incentive for
gas consumers with the capability to switch from gas to distillate to do so,
and reports of switching are emerging in a number of areas. Interruptible gas
customers with resid or distillate fuel back-up have already switched to oil,
so it is now firm gas supply customers with the potential to add to the
already high level of distillate demand. So far in December US distillate
demand is running at a record high December level of 3.9 mbd. However, only a
small portion of this demand is the result of economically based
fuel-switching from gas to distillate. CERA estimates that the additional
demand likely to come from further switching of gas to distillate is
relatively small, on the order of 0.1 to 0.2 mbd. In CERA's view it is likely
that only a portion of the theoretical capacity will be switched on short
notice because in some cases, this theoretically switchable capacity has not
been used in recent years, and tankage and delivery infrastructure may be in
uncertain condition.

Switching by interruptible gas customers (such as utilities) to distillate
began about a month or more ago, although the volumes involved are relatively
small. Switching to residual fuel already occurred months ago when gas prices
started to surge in the summer. A portion of the US secondary and tertiary
distillate stockbuild seen this autumn was likely prompted by interruptible
gas customers filling their reserve distillate fuel storage. Given the
expectations of a tight gas market, regulators have been explicit about
enforcing back-up fuel storage requirements in the months leading up to the
current heating season.

Other end users of natural gas have few or no options for fuel switching.
Some ammonia and ethane producers have shut down operations because the cost
of feedstock natural gas is high. Natural gas is also used in some enhanced
oil recovery operations, and some of these producers have also opted to sell
gas back to the grid rather than produce oil.

Supply Trends
Non-OPEC supply for the fourth quarter is expected to be up 0.9 mbd over a
year earlier at 46.4 mbd. Recent events include a shortfall in Mexican
production, curtailed in October by about 300,000 bd owing to the effects of
Hurricane Keith. Mexico's fourth quarter liquids production is expected to be
3.64 mbd-about 95 percent of Mexican liquids capacity. Norway's output
increased 200,000 bd from October to November as maintenance season ended.
Norway's production for the fourth quarter is expected to be 3.53 mbd.*

Growing Russian crude oil production throughout the year is supporting a
recent surge in exports, in spite of higher export taxes. Russian exports of
domestic oil production (excluding transit volumes) reached 2.5 mbd in
November, after remaining fairly steady at about 2.35 mbd from July though
October. Fourth quarter oil exports are expected to average 2.5 mbd, 0.3 mbd
greater than in the fourth quarter 1999.

CERA estimates Iraqi oil production averaged 2.91 mbd in November-down 0.1
mbd from the October level. The cutoff in exports earlier this month reduced
Iraqi output for the first 12 days of December to roughly 0.8 mbd. Iraq
resumed exports of about 1 mbd on December 13, which raised production to
1.80 mbd. Assuming no change in Iraq's current production stance, Iraqi
production would average 1.41 mbd for December. On a quarterly basis, the
decline in Iraq output would lead to estimated OPEC output in the fourth
quarter of 29.0 mbd and would turn an estimated global oil stockbuild of 0.5
mbd into a stockdraw of 0.1 mbd. These production estimates include 0.15 mbd
of crude oil exports to Syria that began on November 20 without UN
authorization and are continuing.

Oil Stocks
US crude oil inventories (DOE data) have climbed intermittently from an
annual low of 280 million barrels in September and reached 292 million
barrels in mid-December (see Figure 1). Since prices weakened in late
November, crude oil stocks have stabilized above the annual low in September
and the ranges seen in October to levels from 289-292 million barrels.

Primary inventories of US heating oil remain well below year-earlier levels;
at 48 million barrels they are 15 million barrels, or 24 percent less, than
those of a year ago, but there are indications of builds in secondary and
tertiary inventories. We estimate that wholesale and consumer stocks are up
5-10 million barrels since August and are actually higher than they were at
the end of last year.

In Europe crude oil stocks are at more comfortable levels when compared with
those of the United States. In November stocks rose nearly 9 million barrels
to 426 million barrels. At this level they are below the highs of 1999 but
well above the low levels of early 1996 (see Figure 2). Japanese crude oil
inventories at end-October were 107.6 million barrels, which is above the
record low set earlier this year but still well below levels seen in recent
years (see Figure 3).

*********************************************************
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Strategies and Risks for the Energy Future" in Houston, February 12-16,
2001!? For more information and to register, please visit
http://www20.cera.com/ceraweek/

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Honey, I have talked to maritza and she will come clean Thursday
Also - if you could follow up on the insurance claim I filed for the tree info is:
Allstate's South TX claim office ph#1-888-250-6605
The claim number is 8202536549 filed 8/31 on our homeowner's policy#216939226
I don't think they assigned an adjustor yet - they said someone from that claims
office would call us..
ily
kq


The Power Deal Ticket report and the Weekly Gas report have been combined into one file.  The first tab is the Power Deal Ticket information.  The second tab summarizes last week's gas transactions and the third tab lists the gas transaction details.


---------------------- Forwarded by Holden Salisbury/PDX/ECT on 05/01/2001 02:18 PM ---------------------------

Outlook Migration Team@ENRON
04/30/2001 09:02 PM
To:	Anna Mehrer/PDX/ECT@ECT, Chris Lackey/PDX/ECT@ECT, Chris Mallory/PDX/ECT@ECT, Dave Fuller/PDX/ECT@ECT, Diana Scholtes/HOU/ECT@ECT, Ed Clark/PDX/ECT@ECT, Fran Chang/PDX/ECT@ECT, Glenn Surowiec/PDX/ECT@ECT, Heather Dunton/PDX/ECT@ECT, Holden Salisbury/PDX/ECT@ECT, Jeff Richter/HOU/ECT@ECT, Jeff Shields/PDX/ECT@ECT, Jeff G Slaughter/PDX/ECT@ECT, Jeffrey Oh/PDX/ECT@ECT, Jessica Burry/PDX/ECT@ECT, Jim Buerkle/PDX/ECT@ECT, Jim Gilbert/PDX/ECT@ECT, Kate Symes/PDX/ECT@ECT, Laura Wente/HOU/ECT@ECT, Mark Fisher/EWC/Enron@Enron, Samantha Law/PDX/ECT@ECT, Sean Crandall/PDX/ECT@ECT, Terry W Donovan/HOU/ECT@ECT, Todd Perry/PDX/ECT@ECT, Tom Alonso/PDX/ECT@ECT, Tracy Ngo/PDX/ECT@ECT
cc:

Subject:	4-URGENT - OWA Please print this now.

Current Notes User:

REASONS FOR USING OUTLOOK WEB ACCESS (OWA)

1. Once your mailbox has been migrated from Notes to Outlook, the Outlook client will be configured on your computer.
After migration of your mailbox, you will not be able to send or recieve mail via Notes, and you will not be able to start using Outlook until it is configured by the Outlook Migration team the morning after your mailbox is migrated.  During this period, you can use Outlook Web Access (OWA) via your web browser (Internet Explorer 5.0) to read and send mail.

PLEASE NOTE:  Your calendar entries, personal address book, journals, and To-Do entries imported from Notes will not be available until the Outlook client is configured on your desktop.

2. Remote access to your mailbox.
After your Outlook client is configured, you can use Outlook Web Access (OWA) for remote access to your mailbox.

PLEASE NOTE:  At this time, the OWA client is only accessible while connecting to the Enron network (LAN).  There are future plans to make OWA available from your home or when traveling abroad.

HOW TO ACCESS OUTLOOK WEB ACCESS (OWA)

Launch Internet Explorer 5.0, and in the address window type:  http://nahou-msowa01p/exchange/john.doe

Substitute "john.doe" with your first and last name, then click ENTER.  You will be prompted with a sign in box as shown below.  Type in "corp/your user id" for the user name and your NT password to logon to OWA and click OK.  You will now be able to view your mailbox.

PLEASE NOTE:  There are some subtle differences in the functionality between the Outlook and OWA clients.  You will not be able to do many of the things in OWA that you can do in Outlook.  Below is a brief list of *some* of the functions NOT available via OWA:

Features NOT available using OWA:

-  Tasks
-  Journal
-  Spell Checker
-  Offline Use
-  Printing Templates
-  Reminders
-  Timed Delivery
-  Expiration
-  Outlook Rules
-  Voting, Message Flags and Message Recall
-  Sharing Contacts with others
-  Task Delegation
-  Direct Resource Booking
-  Personal Distribution Lists

QUESTIONS OR CONCERNS?

If you have questions or concerns using the OWA client, please contact the Outlook 2000 question and answer Mailbox at:

	Outlook.2000@enron.com

Otherwise, you may contact the Resolution Center at:

	713-853-1411

Thank you,

Outlook 2000 Migration Team


Mark your calendar to attend the special workshop entitled Power Marketing
Transactions Using the EEI/NEM Master Contract from Deal to Payment taking
place in Houston, Texas on March 7th and in New York City on April 25th.

Attached is the brochure (in Acrobat format) detailing the workshop.  In
addition to the panelists listed in the brochure, also joining our Power
Contract Team Panelists will be:

Randy Baker, Manager of Credit Risk, Reliant Energy
Edward Kim, Director of Financial Risk, PSE&G
Ronald Barone, Director, Corporate Ratings Group, Standard & Poor's

Don't miss this opportunity!  Space is limited, so register as soon as
possible.  We look forward to seeing you!

For further information about registration contact Wanda Green at
202-508-5182 or wgreen@eei.org

Andrew S. Katz, Senior Attorney
Edison Electric Institute
701 Pennsylvania Avenue, N.W.
Washington, D.C.  20004
Voice:  202-508-5616
Fax:     202-508-5673
e-mail:  akatz@eei.org

 - pwr mktg trnsactns.pdf


Are you going to handle this?
PL

 -----Original Message-----
From: 	Cheung, Cecilia
Sent:	Tuesday, January 15, 2002 11:45 AM
To:	Love, Phillip M.; Keiser, Kam
Cc:	Wong, Jeremy; Lim, Francis S.
Subject:	RE: New NETCO books

If the central books have 2 set up then I'll leave MC assigned to GD and we need another set of central books set up for P/B/I.  Please have the new books set up in Global first (with new book codes, not MC) then email me the new IDs, book names, book codes and region codes.

CP ID	Short Name	Code	Region	Commodity	Uom	Currency	Commodity/UOM/Curr	P	B	Idx	GD	PHY	Y
	FB-CENT1-CAD-GD?		CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X			X
	FB-CENT2-CAD		CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X			X
	FB-CENT3-CAD		CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X			X
	FB-CENT4-CAD		CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X			X
	FB-CENT5-CAD		CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X			X
	FB-CENT6-CAD		CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X			X

Call me if you have any questions.  Thanks.

Cecilia
x53362

 -----Original Message-----
From: 	Love, Phillip M.
Sent:	Tuesday, January 15, 2002 9:15 AM
To:	Cheung, Cecilia; Keiser, Kam
Cc:	Wong, Jeremy; Lim, Francis S.
Subject:	RE: New NETCO books

The West books should be GD and GDY for Canadian deals.  I would think that the central books should have two set up, one for P/B/I and one for GD.  I believe I had called you and said that the books should be set up like FT-ONT-GDL for the gas daily books.  This is correct.  Thanks.
PL

 -----Original Message-----
From: 	Cheung, Cecilia
Sent:	Monday, January 14, 2002 5:31 PM
To:	Keiser, Kam; Love, Phillip M.
Cc:	Wong, Jeremy; Lim, Francis S.
Subject:	New NETCO books

Phillip/Kam,

The following new Canadian gas books are all assigned to "MC" but a canadian book can either be price/basis/index or gasdaily but it cannot be both (otherwise cause problems in PortCalc).  I remember we discussed about this last time and I was told to use FT-ONTARIO as the example, but there are a lot of FT-ONTARIO books like FT-ONT-CENTRAL and FT-ONT-GDL with different setup.

For example, 166860 has all P/B/Idx/GD checked which it shouldn't be.  And 166859 has GD checked so does it mean it should be set up as a Canadian gasdaily book?  Then if 166860 - 166877 are Canadian price/basis/index, another book code should be assigned instead of using MC.  Please advise.

CP ID	Short Name	Code	Region	Commodity	Uom	Currency	Commodity/UOM/Curr	P	B	Idx	GD	PHY	Y
166860	FB-CENT1-CAD	MC	CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X	X		X
166863	FB-CENT2-CAD	MC	CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X	X		X
166867	FB-CENT3-CAD	MC	CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X	X		X
166871	FB-CENT4-CAD	MC	CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X	X		X
166875	FB-CENT5-CAD	MC	CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X	X		X
166877	FB-CENT6-CAD	MC	CENT	NGGJ	GJ	CAD	NG/GJ/CAD	X	X	X	X		X
166859	FB-WEST1-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166865	FB-WEST2-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166869	FB-WEST3-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166873	FB-WEST4-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166876	FB-WEST5-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166880	FB-WEST6-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166881	FB-WEST7-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166882	FB-WEST8-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X
166883	FB-WEST9-CAD	MC	WEST	NGGJ	GJ	CAD	NG/GJ/CAD				X		X

Also as per our conversation with Kam, all PB-HDG books set up from the original list have been removed from the database as they were not supposed to be set up in Tagg/Erms.

Thanks,
Cecilia
x53362


---------------------- Forwarded by Julie Hernandez/AA/Corp/Enron on
05/19/2000 04:38 PM ---------------------------

Julie Hernandez
05/19/2000 03:46 PM
To: Patti Thompson/HOU/ECT@ECT
cc:
Subject: Calgary


Not sure.  It seems to be sporadic.  Another issue is the work load imposed on Cara when she has scheduling conflicts.  She has had to schedule a lot lately.  We'll figure it out ...

 -----Original Message-----
From: 	Belden, Tim
Sent:	Friday, July 20, 2001 6:22 AM
To:	Scholtes, Diana
Subject:	Reduced Work Week!

How?


HAYSLETT, RODERICK J,

A revised version of the Evaluation form for Associates and Analysts is attached below. Please disregard and destroy the form you received on July 2, as well as any blank forms retrieved from the PEP system prior to that date. Please use the attached for Associate and Analyst evaluations.

All Evaluations for Associates and Analysts must be completed using this form.


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/01/2000
04:12 PM ---------------------------

Vince J Kaminski
12/01/2000 03:35 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: TO_DO

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/01/2000
03:36 PM ---------------------------

Vince J Kaminski
12/01/2000 03:14 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: TO_DO

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/01/2000
03:15 PM ---------------------------

Vince J Kaminski
12/01/2000 02:16 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: TO_DO

Start project  with Elene for Mark


This will be yours when you get back - same counterparty as Tex Mex, I
think.  I'll finish this and forward you some other docs.

kau
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/03/2001 07:50
AM ---------------------------

John Moore
04/02/2001 02:24 PM
To: Kay Mann/Corp/Enron@Enron
cc: Mitch Robinson/Corp/Enron@Enron

Subject: Re: BPUB

Kay,

1.) We are entering into a CA with BPUB, can we reference it in Article II,
Paragraph 3?  It's term is "two years from the date of this letter",
presumably  21 March 2003.

2.) Under the "PRELIMINARY TERM SHEET"  where we define "Structure" do you
think we need to elaborate on the phrase "appropriate project  structure"?
Maybe we should say "appropriate project equity participation and finance
structure".

Otherwise, I like the document.  I called John Davidson, outside counsel for
BPUB, this morning and he's approved the CA.  I expect that we'll get a
partially executed CA within the next day or so.

JMoore

Kay Mann
04/02/2001 01:11 PM
To: John Moore/Corp/Enron@Enron, Mitch Robinson/Corp/Enron@Enron
cc:

Subject: BPUB

Anything else for the term sheet?  Feel free to add it and return to me.


Aimee,
Are you confirming these volumes with HL&P?  We have been doing some special
deals at Green's Bayou and the HL&P dealmaker has been calling to find out
what the volumes are.  I do not think he communicates with his scheduler, is
that the case?  Anyway, we need to agree with HL&P on what volumes flowed on
these special days and get them into the system so they can be billed
correctly.

   Aimee Lannou                06/19/2000 02:18 PM

To: Edward D Gottlob/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON
cc:
Subject: HL&P 6/00

Ed - when you have a chance, I would like to go over this with you.

Aimee


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 11/01/2000
05:05 PM ---------------------------

"The Alliance of Energy Suppliers" <alliance@eei.org>@ls.eei.org on
11/01/2000 04:13:19 PM
Please respond to "The Alliance of Energy Suppliers" <alliance@eei.org>
Sent by: bounce-app-ippexecs-33275@ls.eei.org
To: "Generation and Power Marketing Executives" <app-ippexecs@ls.eei.org>
cc:
Subject: Alliance Info Alert: FERC Report on Western Markets

At its special meeting today, FERC released the results of its eagerly
awaited probe into California's summer power crisis, concluding that under
certain circumstances, California ratepayers were subjected to unjust and
unreasonable power rates due to California's "seriously flawed" market
structure and rules in conjunction with tight demand and supply conditions
throughout the West.

The FERC staff report on western markets and the causes of the Summer 2000
Price Abormalities, entitled, Part I of Staff Report on U.S. Bulk Power
Markets, is available at the following website:
http://www.ferc.fed.us/electric/bulkpower.htm
In response, FERC issued an order proposing a series of sweeping structural
changes to the California ISO and PX to help remedy the pricing problems, and
solicited public comment by November 22.  A technical conference has also
been scheduled for November 9, to discuss the proposed solutions and other
remedies that might be suggested (details TBA).  While all four commissioners
supported the order, the order stretched the Commission.  Chairman Hoecker
and Comm. Breathitt expressed strong endorsements, while Comms. Hebert and
Massey concurred, citing areas where they felt the Commission had either
"over-reached" or not gone far enough, as discussed below.  A final order is
expected to be issued by year's end.

At the same time, the Commission warned California consumers of their
continued risk of paying higher prices unless policy makers there resolve
state issues, such as: (1) immediately implementing the availability of day
ahead markets for power purchases; (2) development of demand responses; (3)
siting of generation and transmission; and (4) assurance of sufficient
reserve requirements.

Highlights of Proposed California Structural Remedy

In its order, FERC proposed a series of market overhauls, including:

(1) Eliminating the state's mandatory requirement that the state's
investor-owned utilities buy and sell electricity through the PX, and allowing
these utilities to purchase electricity through forward contracts and other
alternative mechanisms to manage supply risks.

(2) Requiring market participants to schedule 95 percent of their
transactions in the day-ahead market and instituting a penalty charge for
under-scheduling (in excess of five percent of hourly load requirements), in
order to discourage over-reliance on the real-time spot market.

(3) Establishing independent, non-stakeholder governing boards for the ISO
and PX.

(4) Modifying the current single price auction system by (a) imposing a
temporary $150/MWh "soft cap" that prohibits supply bids in excess of $150
from setting the market-clearing price for all bidders; (b) requiring sellers
bidding above $150/MWh to report their bids to FERC on a confidential, weekly
basis and provide certain cost support; and (c) requiring the ISO and PX to
report monthly information on such bids.  The Commission's price mitigation
measures would remain in effect through December 31, 2002.

(5) Declining to order retroactive refunds for the state's ratepayers and
utilities, citing insufficient authority to do so, but subjecting sellers to
potential refund liability for transactions from October 2, 2000 until
December 21, 2002, but no lower than their marginal or opportunity costs, if
FERC finds non-competitive behavior.

(6) Encouraging accelerated state siting approval and introduction of demand
response management programs.

Separately, the draft order rejected the ISO's request for an extension of
its current purchase price cap authority, and the PX's request for price
capping authority.

Commissioner Responses

Comm. Herbert reluctantly concurred, noting that his decision may change when
a final order is considered based on comments filed or testimony offered at
the November 9 meeting.  He stressed that he would have preferred that the
order address four areas: (1) eliminate all price controls in California
markets; (2) abolish the single price auction entirely; (3) terminate the
"buy and sell" mandate in the PX; and (4) direct the ISO to address a long
list of cited problems in its January 2001 RTO filing, rather than having the
Commission prescribe specific remedies.

Hebert stated that while he was opposed in principle to the "soft cap"
concept, if one had to be adopted, then the soft cap should increase
incrementally increase over time at specific pre-announced dates.  He
believes that this would serve to both encourage greater investment in
facilities and additional forward contracting as well as provide an incentive
for California regulators to address market design and other flaws.  Also, he
would not have disbanded the stakeholder governing boards at this time, but
allow the ISO and PX to address this issue in their January 2001 RTO
filings.  In addition, he would not dictate risk management methods,
preferring instead that market participants determine appropriate actions on
their own.  Finally, he advised Californians not to be so environmentally
focused that they do not realize their tremendous need for generation
capacity.

Comm. Breathitt stated her approval of the Order while warning that FERC
cannot allow the events of this past summer to reverse or slow the progress
towards open and competitive markets.  She noted that it was the Commission's
job to guide the market to self-correct and not to conduct "command and
control."  She also commended the managers of the ISO and PX, saying that
they have performed admirably.  However, she noted she is awaiting comments
on the single price auction remedy and its accompanying confidential
reporting requirements.

Comm. Massey concurred, but emphasized that he advocates a more aggressive
approach.  He feels that the Congress has "put its thumb on the scale" in the
Federal Power Act to protect consumers.  Stating that prices will continue to
be unreasonable in the future, he believes that this Order moves in the right
direction, by proposing solutions to identified problems such as an over
reliance on the spot market, lack of demand response, the need to
reconstitute governance of the ISO and PX and the elimination of the buy/sell
mandate.  Comm. Massey specifically called for comments regarding whether the
$150/MWh soft cap went far enough, whether FERC has the legal authority to
issue refunds and to determine whether there should be a requirement for a
certain percentage of forward contracting to hedge against the spot market
price volatility.

Finally, Chairman Hoecker stated his strong support of the Order, but noted
that this is "no time to pull punches."  He emphasized that the Commission
needed frank comments from the industry.  He echoed Comm. Breathitt's warning
that competition is at risk and that they needed to get the markets back on
track.  Noting that the Commission lacked authority to order refunds, he
stated that the responsibility rests with Congress.  Addressing
jurisdictional issues, he stated that siting problems encountered at the
state level are slowing the "meandering transition" to competition.  He feels
that the state of California and FERC need to work together to resolve these
problems and that FERC is not attempting to usurp power.  Rather, California
is part of a broader interstate market and is dependent on the western region
for reliable energy, thus placing the burden on federal action to make things
work, Hoecker maintained.  The Chairman also said that the Commission will
fully investigate and act upon complaints of market power abuse or further
evidence provided by staff's ongoing investigation.

If you have any questions or comments, please call Jack Cashin at
202/508-5499.


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/13/2001
09:08 PM ---------------------------

Shirley Crenshaw
04/13/2001 06:37 PM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Pinnamaneni
Krishnarao/HOU/ECT@ECT, Vasant Shanbhogue/HOU/ECT@ECT, Mike A
Roberts/HOU/ECT@ECT, Joseph Hrgovcic/HOU/ECT@ECT, Tanya
Tamarchenko/HOU/ECT@ECT, Zimin Lu/HOU/ECT@ECT, Martin Lin/HOU/ECT@ECT,
Maureen Raymond/LON/ECT@ECT, Osman Sezgen/HOU/EES@EES, Paulo
Issler/HOU/ECT@ECT, Amitava Dhar/Corp/Enron@ENRON, Alex
Huang/Corp/Enron@ENRON, Kevin G Moore/HOU/ECT@ECT, William
Smith/Corp/Enron@Enron, Jose Marquez/Corp/Enron@ENRON, Chonawee
Supatgiat/Corp/Enron@Enron, Shalesh Ganjoo/HOU/ECT@ECT, Tom
Halliburton/Corp/Enron@Enron, Elena Chilkina/Corp/Enron@Enron, Sevil
Yaman/Corp/Enron@Enron, Sofya Tamarchenko/NA/Enron@Enron, Bob
Lee/NA/Enron@Enron, Gwyn Koepke/NA/Enron@Enron, Hector Campos/HOU/ECT@ECT,
Anita DuPont/NA/Enron@ENRON, Youyi Feng/NA/Enron@Enron, Praveen
Mellacheruvu/HOU/EES@EES, Stephen Bennett/NA/Enron@ENRON, Roman
Zadorozhny/HOU/EES@EES, Lance Cunningham/NA/Enron@ENRON, Leann
Walton/NA/Enron@ENRON, Shane Green/HOU/EES@EES, Seksan
Kiatsupaibul/HOU/EES@EES, Kate Lucas/HOU/ECT@ECT, Nelson
Neale/NA/Enron@Enron, Rabi De/NA/Enron@ENRON, Kenneth
Parkhill/NA/Enron@ENRON, Jaesoo Lew/NA/Enron@ENRON, Jason
Sokolov/HOU/ECT@ECT, Steve Bigalow/NA/Enron@Enron, Tom
Barkley/NA/Enron@Enron, Rakesh Bharati/NA/Enron@Enron, Wichai
Narongwanich/HOU/EES@EES, Sandeep Kohli@Enron, Iris Mack/ENRON@enronXgate,
Mitra Mujica/ENRON@enronXgate
cc:
Subject: Party, Party, Party (at Sandeep's new house)

Hi everyone:

Please mark Saturday, May 5th on your calendar.  Sandeep is
having everyone over to his new house!

DETAILS TO FOLLOW!


Travis,

Just to let you know that Mark Elliott will be the primary lawyer responsible
for clickpaper.com for Europe.

Justin


514118 was changed to COB.

Kerri Thompson@ENRON
02/05/2001 02:41 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: apb checkout

sorry 514118

   Kate Symes @ ECT                02/05/2001 04:31 PM

To: Kerri Thompson/Corp/Enron@ENRON
cc:

Subject: Re: apb checkout

513386 has been changed.
514418 - no such deal.

Kerri Thompson@ENRON
02/05/2001 02:30 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: apb checkout

513386 should be apb

514418  broker has cob


Mr. Mitchell,

At the request of Phil DeMoes I am forwarding a draft of a GISB between Enron
North America Corp. and Oglethorpe Exchange Place.   Upon your review,
please give me a call to discuss any questions and or issues regarding the
draft.   I may be reached at one of the locations listed below.

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


Gerald,

I didn't find anything in my TransAlta file, but here are 3 different types of agreements I've used to tie up Shippers before doing a capacity release.

Steve Van Hooser
Enron North America Corp.
713-853-7238
713-646-3490 (fax)


It will be folks from Americans for Tax Reform and many of the think tank
people you'll see on Friday.  Rob Bradley will be there as well.  It might be
fun, but it's not a big deal if you can't make it.


Dale,

My recommendation is to make Steve the head of the research unit in London.
We were talking originally about September but I think we should accelerate
this process.
Of course, Anjam will be very unhappy about it, but we cannot manage around
him
any longer.

I think that the promotion should be combined with a salary increase.
I would like to offer him a significant increase that
goes with expanded responsibilities and much higher visibility.
A salary increase will also bring him closer to the market.
 We see the market for  technical people going through the roof in
practically every location
where we operate.

A contract is not a good solution in my view. It creates a sense of false
security for
both an employee and the company.

I shall send a message to John Sherriff with my recommendation. I shall cc
you.
I would appreciate if you could bring it up with John as well.

Vince

Dale Surbey
07/11/2000 10:23 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Steve Leppard

Hi Vince,

HR is working on a mid-year salary review for London people that have a
noticeable gap between their compensation at Enron and what we would have to
pay in the market for a replacement.  They highlighted Steve as someone with
a potential gap - particularly in light of what we're seeing in our quant
recruiting effort for credit trading and research.

I'd like your opinion on the best way to make sure we keep Steve happy and
keep him at Enron.  There are several things I see we can do:

1)  Give him a mid-year pay increase to move him closer to market.  I'm not
sure this is the best way to go, especially if we only offer him a token
salary increase.

2)  Offer him more responsibility:  What are your thoughts on timing for
making Steve the official head of the London research team?  With my move to
EBS, should we accelerate this?  I think this is good way to keep him happy
and motivated, and then follow up with a more meaningful salary review at
year-end (as part of the regular process) that takes into account his greater
responsibility.

3)  We have some people that we're trying to get under long-term (3-yr)
contract with a 12-month notice clause.  Obviously anyone signing one of
these will want significant up-front compensation for being handcuffed.
We've not had a lot of success with these here in London, and I would prefer
to keep Steve happy so he wants to stay with Enron rather than contractually
binding him to the job.

I'd value your thoughts on this.

Thanks,

Dale


Joe, here is the UIC-17 for dewatering.  The hardcopy is in the FedEx.
Thanks for the help.  <<Ball - enclosing Injection well work
permit.DOC>>  <<INJECTION WELL WORK PERMIT.DOC>>
 - Ball - enclosing Injection well work permit.DOC
 - INJECTION WELL WORK PERMIT (2).DOC


great job!!


Todd, I have gone through all of these resumes and will not pursue a next step at this time.

The latest candidate that appears to be on the most interest to me is Robert Ayres and I will have my secretary set up a meeting with him this week.

Thanks, BT

 -----Original Message-----
From: 	Peikert, Todd
Sent:	Monday, September 10, 2001 1:56 PM
To:	Tycholiz, Barry
Cc:	Slone, Jeanie
Subject:	Redeployment Candidates

Barry,

As promised, here are some of the current redeployment candidates that have a marketing/structuring/trading background for consideration concerning your West Origination opening.  I believe that you have seen Jim Lowe before and expressed some limited interest in him.  The other candidates are most likely new to you.

Let me know if you would like to pursue any of these redeployed employees.

 << File: Alok Garg.doc >>  << File: Mark Dypiangco.doc >>  << File: Laura Odenthal.doc >>  << File: Audrey O'Neil.doc >>  << File: Jim Lowe.doc >>

Also, I spoke with Mark McConnell today, and he mentioned that he had accepted the offer to join the Transwestern group of ETS.  He primary motivation for selection of this option was his desire to work with asset deals.  As we know, given EWS "asset light" approach to deal making, this option would be difficult to fulfill within the West Origination group.  However, he mentioned that he was very impressed with your group, and short of the asset piece maintained a high interest in your open position.

Regards,
Todd Peikert


FYI, if you have not already received this.

Samantha

Samantha M. Slater
Manager of State & Regional Affairs
Electric Power Supply Association
1401 New York Avenue, N.W.
11th Floor
Washington, D.C.  20005
Phone: 202-628-8200
Fax: 202-628-8260
E-mail: sslater@epsa.org
Date: Wed, 07 Nov 2001 17:30:33 -0500
From: "Jackie Gallagher" <JGallagher@epsa.org>
To: <joe.lane@abnamro.com>,<peter.gaw@abnamro.com>,	<georgekeefe@aegislimited.com>, <lconley@aeglobalmarkets.com>,	<MPA@aelaw.com>, <cwentlent@aesc.com>, <gdavis@aesc.com>,	<jruggirello@aesc.com>, <rnaill@aesc.com>,	<carrie.cullenhitt@aesmail.com>, <sara.oneill@aesmail.com>,	<jjhayden@airmail.net>, <jdayka@alleghenyenergy.com>,	<tadlhoc@alleghenyenergy.com>, <vschaff@alleghenypower.com>,	<bbuchynsky@aol.com>, <cpowerc@aol.com>, <Frayblay@aol.com>,	<lealp@aol.com>, <MAPSA1@aol.com>, <ngmuller@aol.com>,	<richzambo@aol.com>, <John.A.Cohen@BAKERNET.com>,	<Jonathan.W.Gottlieb@BAKERNET.com>,	<Michael.J.Zimmer@BAKERNET.com>, <roger.m.gibian@BAKERNET.com>,	<feldmanr@bingham.com>, <mcwilliams@bingham.com>,	<Croach@bostonpacific.com>, <jroy@bostonpacific.com>,	<rjanssen@bostonpacific.com>, <wwerner@bostonpacific.com>,	<marzmj@bp.com>, <netemeah@bp.com>, <prescorw@bp.com>,	<zaiontj@bp.com>, <oskvigoh@bv.com>, <awc@cais.com>,	<alexm@calpine.com>, <alycial@calpine.com>,	<craigc@calpine.com>, <eileenk@calpine.com>,	<jackp@calpine.com>, <jconnelly@calpine.com>,	<jlphillips@calpine.com>, <joer@calpine.com>,	<jstanton@calpine.com>, <kgough@calpine.com>,	<kzadlo@calpine.com>, <petec@calpine.com>,	<peterb@calpine.com>, <pmoeller@calpine.com>,	<priyad@calpine.com>, <sschleimer@calpine.com>,	<tkaslow@calpine.com>, <wtaylor@calpine.com>,	<Lynn.Hargis@chadbourne.com>, <vengel@chienergy.com>,	<Dennis.Flaherty@Cinergy.COM>, <jason.barker@Cinergy.COM>,	<Michael.Alexander@Cinergy.COM>, <davidhodges@cogentrix.com>,	<andrew.katz@constellation.com>,	<david.perlman@constellation.com>,	<harvey.reed@constellation.com>,	<lisa.decker@constellation.com>, <pensabene@constellation.com>,	<agold@coral-energy.com>, <breilley@coral-energy.com>,	<dtrammel@coral-energy.com>, <jbarnett@coral-energy.com>,	<kburton@CovantaEnergy.com>, <paula_soos@CovantaEnergy.com>,	<iepnj@cpanj.com>, <debora_rhoan@dc.kirkland.com>,	<elaine_walsh@dc.kirkland.com>, <cnicholson@deloitte.com>,	<kimontag@deloitte.com>, <srahman@deltapower.com>,	<efisher@deweyballantine.com>, <eodonnell@deweyballantine.com>,	<jenglish@deweyballantine.com>,	<zori_ferkin@deweyballantine.com>, <bill_byrd@dom.com>,	<carolyn_moss@dom.com>, <wesley_walker@dom.com>,	<alexanderp@dsmo.com>, <EisenstatL@dsmo.com>,	<FallonR@dsmo.com>, <perlism@dsmo.com>, <RustumM@dsmo.com>,	<gschott@duke-energy.com>, <jmdonnell@duke-energy.com>,	<lebarrett@duke-energy.com>, <mboyd@duke-energy.com>,	<mfgildea@duke-energy.com>, <mshaywood@duke-energy.com>,	<rjmatlock@duke-energy.com>, <sslavigne@duke-energy.com>,	<teresabrown@duke-energy.com>, <Barry.Huddleston@dynegy.com>
Subject: FERC RTO Order
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_441E987D.FD9CF782"

Attached is a FERC Order Providing Guidance On Continued Processing of RTO Filings, issued today.

 - RM01-12.00C.doc


Pager:  850-986-5643


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I just wanted to tell the three of you that I had such a ball at Texadelphia
today... Susan, I am so happy for you and your Ted Noble stories were
wonderful! :o)

Jessica, I am VERY glad that it worked out that you could be in Houston this
weekend... everything was so relaxing and I enjoyed the time spent.... glad
we were also able to share the terrible Houston fashion scene... so sad...

I love you all very much and hope you have a wonderful week!

-Jen

PS  Susan here's the quote:

"I think we delight to praise what we enjoy because the praise not merely
expresses but completes the enjoyment; it is its appointed consummation.  It
is not out of compliment that lovers keep on telling one another how
beautiful they are; the delight is incomplete till it is expressed."  --
C.S. Lewis
________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com


FYI.  No action needed at this point.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 07/11/2000 05:13
PM ---------------------------

	From:  Gregg Penman                           06/30/2000 10:22 AM

To: j.burns@pecorp.com, Paul Burgener/Corp/Enron@ENRON, Kay
Mann/Corp/Enron@Enron, Tammy R Shepperd/HOU/ECT@ECT, Mary Lynne
Ruffer/HOU/ECT@ECT, Sam Round/HOU/ECT@ECT, Kevin P Radous/Corp/Enron@Enron
cc:

Subject: Midwest Energy Cash Management Policy

Attached is a quick pass at a template for the Midwest Energy Hub Cash
Management Policy based on conversations with both Peoples Energy and Enron
personnel.  I have tried to get down on paper all the issues and have
included several bracketed items and comments that need clarification.
However, I have undoubtedly missed some things and welcome any input. If
everyone could provide me with their comments by Thursday July 6th, I will
incorporate them and work with Kay to translate this into an executable legal
document.

Thanks for everyone's assistance,

Gregg


Lori,

Inquiring about the status of the agreement sent to you in December.

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


FYI.   Current thinking all in.

 -----Original Message-----
From: 	Cilia, Mary
Sent:	Wednesday, September 26, 2001 1:33 PM
To:	Goodrow, Alicia; Bowes, Bill; Hayslett, Rod
Subject:	Revised Gain


For the next two days, you can call me on the cell# 832-724-6346.
Krishna.


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/30/99
04:31 PM ---------------------------

Vince J Kaminski
10/04/99 07:30 AM
To: Andrew Schuleman/AA/Corp/Enron@ENRON
cc: Thomas Bauer/AA/Corp/Enron@Enron, Richard Causey/Corp/Enron@Enron, Ted
Murphy/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT,
Patty Grutzmacher/AA/Corp/Enron@Enron, John Sorrells/AA/Corp/Enron@Enron,
Derek Claybrook/AA/Corp/Enron@Enron
Subject: Re: Model Development Report

Andy,

Thanks for your message regarding the Model Risk project. I think it's a very
important issue and really critical to Enron. The model risk represents a
very significant exposure to the company: a wrong model results in bad
decisions and eventually leads to accounting errors and incorrect financial
statements.

Here are my comments.

1. Reasons of model risk. The main source of model risk in Enron is omitted
in your list. I think it's due to the fact that the responsibility for the
final model approval and validation is dispersed in the organization and
there no single unit/person that is vested with the authority to audit,
approve  and monitor valuation models. The popular perception is that this is
done by the Research Group, but this could not be further form the truth.
Given the way the organization evolved over the last few years, we became a
group of internal consultants, working on highly specialized, partial
problems (sometimes, we work on a project from A to Z, but it's an exception
to the rule).

It's imperative that this is communicated to the senior management in a
precise, non-ambiguous way. I think that this is the main source of potential
problems and the first shortcoming of the modeling process to be corrected.

2. Inappropriate application of models. I would expand point 3 in your
draft (inappropriate application of models)
and add two lower level points: a) wrong inputs b) incorrect model used for a
given transaction. TVA is an example of point a: a transaction in case of
which the inputs have not been being updated for an extended period of time
in the past.

3. Control Strength. Under Control Strength you can mention that several
audits
of the Research Group model by Arthur Andersen and Darrell Duffie have been
initiated at our insistence.

4. Audit scope. I don't think you can address the issue of the model risk if
you exclude
from your review Risk Analytics and IT. The model development
activity cannot be divided into separate, independent processes.
I am afraid your recommendations will be highly inaccurate if your audit
scope will
remain as is.

Vince Kaminski

Andrew Schuleman@ENRON
09/29/99 06:00 PM
To: Wanda Curry/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Model Development Report

Attached is a draft of the Model Development Report that will be presented at
the Controller's Meeting on Friday, October 1, 1999.  I would appreciate if
you could please review the report and respond with any comments prior to the
meeting.  I appreciate all your help and cooperation throughout our review.

Thanks,
Andy


Mark, note the feedback from the AA's, it is imperative that we get a handle
on this!  Let me know when I can spring our plan on Jeff.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 07/26/2000
03:37 PM ---------------------------

Jere C Overdyke
07/26/2000 03:26 PM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: ENA Analysts and Associates

Attached is a memo regarding a meeting I had with our associates on July 17,
2000.  Additionally, I met with Celeste Roberts on July 21 and held another
meeting with the Associates on same date.

The planned dinners with the associates as well as the proactive approach ENA
is taking with them is the correct course of action.

Jere
---------------------- Forwarded by Jere C Overdyke/HOU/ECT on 07/26/2000
03:06 PM ---------------------------

Jere C Overdyke
07/17/2000 02:53 PM
To: Ted C Bland/HOU/ECT@ECT
cc:
Subject: ENA Analysts and Associates

I met with 7 associates and 1 analyst  over lunch to discuss the Analyst and
Associate Program.  The major concern expressed by everyone in the meeting
was that the program has become a bureaucracy vs a meritocracy.  According to
the Associates, the program has become inflexible on any issue and the only
feedback they receive is "go talk to Skilling if you don't like the
answers".  Another major concern was compensation.  After listening to the
comments, my conclusion is that there are some problems that need to be
addressed.  Specific recommendations by this small group include (1) reduce
amount of time in program before promotion to manager from 18 months to 12
months, (2) increase Associates involvement in rotation decisions, (3)
explanations of why the program is structured in a certain way without
defensive comments of "go talk to Skilling", (4) generally, more of an open
market approach so that we are using a "carrot vs stick" method to motivate
behavior.

Let me know about the next meeting to discuss.

Jere
---------------------- Forwarded by Jere C Overdyke/HOU/ECT on 07/17/2000
02:23 PM ---------------------------

	Enron North America Corp.

	From:  David W Delainey                           07/14/2000 08:43 AM

Sent by: Kay Chapman
To: Sally Beck/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Raymond
Bowen/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT, Wes Colwell/HOU/ECT@ECT,
Janet R Dietrich/HOU/ECT@ECT, Jeff Donahue/HOU/ECT@ECT, W David
Duran/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT,
Mike Jakubik/HOU/ECT@ECT, Scott Josey/Corp/Enron@ENRON, John J
Lavorato/Corp/Enron@Enron, Rodney Malcolm/HOU/ECT@ECT, George
McClellan/HOU/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Julia Murray/HOU/ECT@ECT,
Jere C Overdyke/HOU/ECT@ECT, David Oxley/HOU/ECT@ECT, Kevin M
Presto/HOU/ECT@ECT, Brian Redmond/HOU/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT, C John Thompson/Corp/Enron@ENRON, Max
Yzaguirre/NA/Enron@ENRON, James A Ajello/HOU/ECT@ECT, Edward
Ondarza/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Beth Perlman/HOU/ECT@ECT,
Mark Frevert/NA/Enron@Enron, Jean Mrha/NA/Enron@Enron, Julie A
Gomez/HOU/ECT@ECT
cc: Patti Thompson/HOU/ECT@ECT, Catherine DuMont/PDX/ECT@ECT, Marsha
Schiller/HOU/ECT@ECT, Mollie Gustafson/PDX/ECT@ECT, Shirley
Tijerina/Corp/Enron@ENRON, Christy Chapman/HOU/ECT@ECT, Tina
Rode/HOU/ECT@ECT, Janette Elbertson/HOU/ECT@ECT, Stella L Ely/HOU/ECT@ECT,
Nicole Mayer/HOU/ECT@ECT, Tonai Lehr/Corp/Enron@ENRON, Kimberly
Hillis/HOU/ECT@ect, Ana Alcantara/HOU/ECT@ECT, Yolanda Ford/HOU/ECT@ECT,
Carolyn George/Corp/Enron@ENRON, Donna Baker/HOU/ECT@ECT, Rhonna
Palmer/HOU/ECT@ECT, Felicia Doan/HOU/ECT@ECT, Barbara Lewis/HOU/ECT@ECT,
Pilar Cerezo/NA/Enron@ENRON, Terrellyn Parker/HOU/ECT@ECT, Dusty Warren
Paez/HOU/ECT@ECT, Shirley Crenshaw/HOU/ECT@ECT, Nicki Daw/NA/Enron@Enron,
Cherylene R Westbrook/HOU/ECT@ECT, Kay Chapman/HOU/ECT@ECT, Lillian
Carroll/HOU/ECT@ECT, Venita Coleman/Corp/Enron@Enron, Melissa
Jones/NA/Enron@ENRON
Subject: ENA Analysts and Associates

As you know the ENA OTC is actively working with the Analyst and Associate
Program to develop greater talent flow into ENA.  We are presently working on
a number of initiatives to improve how this is working and significantly
improve communication flow and responsiveness. However in this regard we also
need you to help make sure we have clear lines of communication within ENA
regarding A&A resource levels, performance, rotations and retention efforts.

In this regard we would like for each of you to take the lead  for your
groups needs and ensure that any requests, questions or concerns about A&A's
in your area are passed through you to either Ted Bland (ENA Recuitment Team
Lead - x35275) or Jana Giovannani (ENA liaison from the AA Program - x39233)
or myself. It is important that we are discerning about what we do with our
A&A resources and plan carefully and accurately for our future needs, in this
regard we need for you personally (or a senior member of your team who you
may optionally delegate this task to) will take the time to review any A&A
resource requests from your team before passing them onto us.

In addition, given the importance of these resources, we will be inviting you
to a regular bi-monthly meeting to discuss ENA A&A matters. We will confirm
the first date in due course. In the meantime if you would like to volunteer
another senior member of your team to assume this reponsibility please supply
their name as soon as possible.

Please call with any questions.


Bill Rapp, an ETS attorney, has asked that we do a  Law Manager database search to determine whether David Foti shows up as a party or otherwise.  Mr. Foti is apparently being considered as a consultant by ETS.  Could you please run a search and reply by e-mail when you are finished?  Thanks.

	Britt


My finger was just to darn fast to hit the send button.  Here's the
attachment.