As Final Exams Begin, Power Is a Big Question
The New York Times, 05/13/01

British Telecom
The Times of London, 05/12/01

Houston needs to think small about future technology
Houston Chronicle, 05/13/01

Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
Houston Chronicle, 05/13/01

MSEB not to pick up 15 pc in DPC after phase II completion
Press Trust of India Limited, 05/13/01

Enron plans to pull out of Gulf gas project: MEED
Agence France-Presse, 05/13/01

SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
Houston Chronicle, 05/13/01

More power to reform agenda
The Economic Times, 05/13/01

India Power Min: New Power Deal With Enron Unit Possible
Dow Jones International News, 05/12/01

India: Talks begin on Dabhol issue
Business Line (The Hindu), 05/12/01

India to allow 3rd party sale if DPC, MSEB jointly approach
Press Trust of India Limited, 05/12/01

DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
Portland Oregonian, 05/12/01

Congressman suggests state buy PGE
Associated Press Newswires, 05/11/01

National Desk; Section 1
As Final Exams Begin, Power Is a Big Question
By JODI WILGOREN

05/13/2001
The New York Times
Page 16, Column 4
c. 2001 New York Times Company

For final exams, prepared students pack extra pens, calculators, bottled
water, granola bars. And, at the University of California's Berkeley campus
this year, a flashlight.
As state officials and utilities struggle to maintain the power supply during
California's continuing energy shortage, administrators and professors at the
31,000-student campus are planning for the possibility that rolling blackouts
may disrupt exams, which began on Friday and run through next Saturday.
''People here are used to interruptions,'' Sara Abbas, 21, a senior
communications major, said with a shrug as she studied in a cafe near campus.
''People walking in, people running around buck naked and whatnot. People
have cut the power lines. They just reschedule.''
In an e-mail message sent Wednesday, the executive vice chancellor, Paul R.
Gray, advised instructors to use ''individual discretion to decide the
disposition of their examinations once the exam has started.'' Among the
options: delay the test until the lights return; postpone it until a
Saturday; grade the incomplete test; or cancel the exam altogether.
Professors are also encouraged to check a Web site to see if their exam rooms
have windows. ''In some classrooms,'' Mr. Gray noted, ''students may have
sufficient natural light.''
The rolling blackouts could hit most of the campuses of the University of
California and California State University. The two systems are embroiled in
a legal dispute with Enron Energy Services, a Houston-based company that, in
February, cut short a four-year contract to provide electricity directly to
the universities. For now, the two systems -- among the largest energy
consumers in the state -- are being supplied by Pacific Gas and Electric and
Southern California Edison.
Though several medical centers and the Davis, Los Angeles and Riverside
campuses of the University of California system are exempt from the
blackouts, the rest of the campuses have been put on alert.
At Berkeley, the warning from Mr. Gray only heightened pre-exam stress
levels.
''Stopping in the middle of a final would be detrimental to my grade because
I save the hardest questions until the end,'' said Heidi West, 20, a
sophomore majoring in political science.
Aaron Chung, a senior studying cognitive science, said it would be unfair to
grade half-finished exams because he often circled answers instinctively,
planning to return later with more care. ''The only thing I don't have a
problem with is if the professors give everyone A's,'' Mr. Chung, 23, said.
''You have to be under a lot of duress for that to happen.''
Gary L. Firestone, a biology professor, said he would move his 500-member
class out into the sunshine and tell students to spread their blue books on
the grass. But Jeff Good, a graduate student who teaches Introduction to
Syntax and Semantics, said he would probably cancel the exam because the
final counts for only 20 percent of the grade.
That is what Michelle Chen, a junior linguistics major in Mr. Good's class,
is hoping for.
''I would love a blackout,'' Ms. Chen said. ''I'm going to turn on my
air-conditioner. My toaster, too.''

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

Business
British Telecom
Patience Wheatcroft

05/12/2001
The Times of London
News International
Final 4
55
(Copyright Times Newspapers Ltd, 2001)

BRITISH TELECOM has inflicted enough damage on itself in the past year. But
others are still lining up to put the boot in. Hours after the company
announced a Pounds 5.9 billion rights issue and the separation of cash-hungry
BT Wireless, Moody's Investors Service lowered BT's credit rating. This
thumbs-down will cost BT an extra Pounds 35 million a year on existing loans
as well as making future working capital more expensive.
The timing is odd. One of the two other main agencies presented with the same
BT proposals maintained its rating and the other edged it down so little that
change-of-rating clauses were not triggered. In the meantime, the market
prices of BT debt have been rising. The Enron Cost of Credit, which measures
the overall risk premium on BT borrowing, has halved since mid February. Such
costly inconsistencies must focus more critical attention on the agencies,
whose power has grown out of proportion to their accountability.
Moody's verdict is, however, peanuts compared with the cost to BT of the
whims of Stephen Byers and the UK competition authorities. Moody's will no
doubt be aghast to learn that Yell could be worth Pounds 1 billion less as a
result.
In 1996 the Monopolies and Mergers Commission found that BT's Yellow Pages
had an 85 per cent monopoly of its market and made it sign undertakings to
cut prices by 2 per cent a year in real terms. The Office of Fair Trading has
reviewed this report; predictably, it has found that the enforced price cuts
have kept competition down and kept Yell's market share up.
The reasoning behind OFT advice that annual real price cuts should be doubled
is closed to scrutiny until Mr Byers has a new BT undertaking. But it appears
to argue that the market is still a monopoly, so Yell must be charging too
much, so prices should fall further.
The result, according to those formerly eager to buy Yell, is that a growth
business has been turned into a stagnant one, losing all momentum. This
sounds typical of the dead hand of UK regulation. It must strengthen the
resolve of BT's new leaders to remodel what the authorities so hate to the
greater advantage of shareholders.

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

OUTLOOK
Outlook
Houston needs to think small about future technology
WILLIAM DYLAN POWELL

05/13/2001
Houston Chronicle
2 STAR
4
(Copyright 2001)

OK, it's test time - sort of like a breakfast-time Rorschach test for Outlook
readers. Here we go: What's the first thing that comes to mind when someone
mentions Houston?
Time's up. Your answers may have been energy, medicine or seemingly random
acts of highway closure. But how about something very, very small? While
Houston may not exactly be synonymous with all things tiny, we may want to
start giving more mind share to the world of the miniature. As technology
advances, Houston may owe a great deal to the study of small substances.
Nanotechnology is the study of creating functional structures on a molecular
scale (the prefix "nano" means one billionth, or 10 to the ninth power
numerically). Its theories and practices give scientists the means to
construct useful entities using the smallest known particle of unaltered
matter.
Before your eyes glaze over in a terminology-induced science class flashback,
you should hear some of the possibilities that this technology could afford
residents of the Bayou City and their respective commercial enterprises. The
possibilities give the works of science fiction author Ray Bradbury a run for
their money, and include producing computers the size of viruses or factories
that could fit neatly on your desk. Cancer-destroying robots could roam a
patient's innards like mounted police at a spring break celebration.
Eventually, all diseases and mutations could be eliminated. And all
manufacturing processes would become waste-free, both in terms of the
environment and from a business process standpoint.
Sound like science fiction? Maybe, but truth is rapidly catching up with
fiction. A team of university researchers recently figured out how to make a
functional switch out of a single organic molecule. Discoveries such as these
have spawned several branch fields of study including nanobiotics, NEMS
(nanoelectromechanical systems) and nanomedicine.
This technology would surely change the world. But it would especially affect
Houston. Applications for nanotechnology are a great fit for Houston's
economic landscape. The chemical industry already has begun conducting
research in small-sizing certain chemical compounds. And the energy industry,
still our darling, has great interest in the power management possibilities
of nanotech. This could be Houston's next great vehicle for economic
development.
Nay-sayers have expressed caution regarding progress in this field on two
separate fronts. First on how distant potential commercial offerings remain;
and secondly on the potential dangers of combining genetic engineering,
nanotechnology and robotics (for fear of creating self-assembling intelligent
machines as often portrayed in science-fiction movies). But too much
technological progress is happening at once for the possibilities not to whet
the appetites of the entire scientific and business communities.
Already, developmental overtures have been heard from Houston's little sister
to the north. The Dallas-Fort Worth region and its growing base of
semiconductor, light assembly and defense industries are keeping a close eye
on developments in small science. In March, a private-sector company donated
$2.5 million to the University of Texas at Dallas for nanotech research. And
a handful of Dallas-area groups have been quietly conducting research of
their own. This money augments the federal government's nearly half-billion
dollar allotment of 2001 research funding for nanotechnology. Houston has its
own projects, but they receive far less publicity.
Houston's public nanoscience efforts have been centered mostly on Rice
University's grand Turks of academia. Pushing the envelope of academic
excellence as usual, Rice's heavyweight research barons continue to generate
and distribute knowledge on the many potential applications of this exciting
technology. But as successful as they are, they receive far less publicity
and support than other less commercially significant disciplines.
On May 29, leaders from the energy, medical and technology sectors will
converge at the Houston Technology Forum to discuss various technology trends
that will affect Houston's future. Will the keynote speakers (chief
executives from Compaq, the Texas Medical Center and Enron) address the issue
of what Houston is doing to prepare for advances in nanotechnology and its
potential economic impact on the region?
I certainly hope so. Energy, medicine and technology are the terra firma of
Houston's economy. Each of these industry sectors could reap profound
benefits by bringing nanotechnology's concepts to light.
Sure, the fruits of this nascent science are still a long way off. But it's
going to become remarkably important sooner than we think. So while
Houstonians are well known for our love of largeness, it's time to think
small. Let's take a careful evaluation of what this technology could mean to
our city and its economic development.

Drawing

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

A
Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
MIKE SNYDER
Staff

05/13/2001
Houston Chronicle
4 STAR
33
(Copyright 2001)

A group of prominent business executives, worried that Houston's reputation
as an unpleasant place to live imperils its future, is developing a plan to
transform the city's educational system, urban design and economic base.
The work of the Center for Houston's Future, a nonprofit group affiliated
with the Greater Houston Partnership, reflects growing concern that Houston
must reposition itself as a vibrant, desirable destination if it is to
compete in an economic climate that empowers skilled workers to live wherever
they choose.
Creating such a "livable city," leaders of the effort say, would in turn
enrich the lives of every Houstonian.
"The interests of the business community are fully aligned with the interests
of the community at large," said Eugene H. Vaughan, a money management
executive and board chairman of the Center for Houston's Future.
A report prepared for the organization by a business-based task force
recommends that local leaders challenge long-held assumptions that have
discouraged meaningful land-use planning. It sketches a vision of Houston 20
years from now in which technology and other tools have revolutionized public
education, "livable city centers" have changed the physical landscape and
current civic leaders have groomed a new, more diverse generation of
successors.
The report argues that the business community's traditional leadership role
in Houston's civic affairs should continue. But it suggests the models of
business influence that prevailed in "the old days" should be re-examined.
"Those were the days when oil was king, and Houston was the energy capital of
the world - the days when a handful of `big' leaders, including CEOs of major
corporations, could meet in a room together and decide on the future of
Houston," the report states.
"But times have changed, and there is far less tolerance in Houston's highly
diverse, egalitarian society for a hidden oligarchy to run things, no matter
how benevolent those leaders might be."
The center's board includes top executives of some of Houston's most
successful and influential companies, including Enron Chairman Ken Lay; Ned
Holmes, chairman and CEO of Parkway Investments/Texas Inc.; James Royer,
president and CEO of Turner, Collie & Braden Inc.; William White, president
and CEO of WEDGE Group Inc.; and Jim Kollaer, president and CEO of the
Greater Houston Partnership.
Vaughan said the stature of the board members is an indication that the group
is not likely to generate plans that will simply sit on a shelf.
"They've got so many demands on their time that they're not going to fool
around with something that is ill-conceived," he said.
Rice University sociology professor Stephen Klineberg, one of the experts who
advised the task force that generated the report, agreed that the center's
work could be very influential.
"This is the first time there's been a systematic, coordinated effort on the
part of the business community" to improve Houston's quality of life,
Klineberg said.
The Center for Houston's Future was created in the early 1990s primarily as a
source of research information for the partnership, Houston's premier
business organization. But its role changed about two years ago, Vaughan
said, when Holmes became chairman of the partnership and encouraged the
center to take an aggressive approach to planning for the region's future.
Last summer, the center organized three workshops attended by 36 people
representing a cross section of the business community. These 10-day,
seven-night events, led by professional facilitators and featuring various
guest speakers, produced a report outlining four possible future Houston
scenarios.
James D. Calaway, a member of the center's board, said the details outlined
in the four scenarios are intended to be "illustrative" and are not
necessarily the actions the organization ultimately will recommend. However,
they provide insight into the direction of the group's thinking, he said.
In the first scenario, based on the assumption that local planning and
decision-making proceed much as they have in the past, the workshop
participants speculate that tension between the city and suburbs increases to
the point that the Legislature strips Houston of its annexation power.
Development is greatly restricted because of failure to meet clean-air
standards, property values plummet and the City Council must pass a large tax
rate increase.
Houston becomes a stronghold of low-wage, service-sector employment, and the
gap between rich and poor widens: "For many who live there, it's simply a
large urban sprawl, adrift in the global economy, or it's a three-year
hardship post on the way to something more desirable."
Scenario two suggests that Houston's leaders transform the educational system
by developing a "Teacher Network" that delivers Internet-based educational
resources into every classroom and teacher's home in the region. This in turn
leads to a communitywide electronic educational network, with every home in
the Houston area connected to the Internet by 2007.
These efforts, combined with universal, full-day preschool care, lead to
state-of-the-art local schools by 2010, with almost universal high school
graduation rates and 75 percent of these graduates going on to college or
technical training programs.
The report does not estimate the cost of these measures or identify how they
would be funded. Potential sources, Calaway said, include local, state and
federal tax money, private grants and reallocation of funds now being spent
on more traditional educational programs.
In scenario three, local leaders take bold steps to overcome Houston's
reputation for sprawl, dirty air and lack of green space - perceptions that
hamper efforts to attract the talent needed to keep the region economically
competitive.
These leaders develop a vision of Houston based on the creation of "livable
city centers" - major activity centers targeted for redesign and
redevelopment - and the connection of these centers through "personal and
public transport in corridors that delight the eye."
Within the centers, streets are reconstructed to better accommodate
pedestrians. Financial incentives prompt developers to provide a wide range
of housing styles, including substantial affordable housing. The Main Street
light rail line is built, succeeds spectacularly and is followed by more rail
lines extending in various directions.
To accomplish these goals, the report states, local leaders must overcome
their "ingrained suspicion of planning," and the City Council must adopt
"new, more prescriptive development standards" within the livable city
centers. Early successes lead to a public referendum authorizing the
expenditure of $8 billion over 20 years to create the "livable city."
Scenario four focuses on making Houston a "crossroads of the world economy."
The city's business leadership becomes broader and more diverse, and it turns
its energy toward diversifying the economy.
The energy industry, adapting to the new economic climate, transforms its
business model and creates new, high-tech enterprises. Space, nanotechnology
and biotechnology research help launch hundreds of companies that quickly
become significant global players.
The workshop participants concluded that Houston must accomplish key elements
of scenarios two, three and four if it is to become a "true world-class city
in which to live and conduct business."
Calaway and Vaughan said the next steps will include designating committees
to develop specific recommendations in each of the broad areas studied, such
as education and quality of life. Working groups then will be established to
begin translating these ideas into policy, they said.
Although the center is focused on the long term, they said, it must produce
results as soon as possible.
"If we do not get serious about this, 20 years from now we're going to be a
low-wage environment, putting people in very, very dead- end jobs," Calaway
said during a recent presentation on the group's work to members of the
nonprofit Gulf Coast Institute.
"We've got to get the quality of life right, but we've also got to make sure
that we educate these kids for our future."

Mugs: 1. Ken Lay (p. 45); 2. Ned Holmes (p. 45); 3. James Royer (p. 45); 4.
Jim Kollaer (p. 45)

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

MSEB not to pick up 15 pc in DPC after phase II completion

05/13/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, May 13 (PTI) Maharashtra State Electricity Board (MSEB) has decided
not to pick up the remaining 15 per cent equity in Enron-promoted Dabhol
Power Company (DPC), which it was earlier supposed to, after the complete
construction of the entire USD three billion power project in Dabhol.
"It is true that we had promised to take the 15 per cent, translating into
infusion of around USD 65 million and given the serious financial stress the
board is facing, it is not going to be possible for us to participate in the
phase II of the project", a senior MSEB official told PTI here Sunday.
Currently, Enron International owns 65 per cent, MSEB -15 per cent, General
Electric and Bechtel 10 per cent each.
However, MSEB is yet to send an official intimation to DPC in this regard,
the official said adding the board would inform the company soon after the
completion of the project.
DPC's USD 1.87 billion phase II would be fired on June seven, 2001, thus
marking completion of the 2,184 MW project.
DPC, which received a Foreign Investment and Promotion Board clearance in
last December for its 10.83 billion foreign Direct Investment, has not been
able to scout an alternative fifth partner for MSEB's equity.
The company had decided to off load the 15 per cent of its current holding of
65 per cent to a new entity, as according to the company's global
debt-consolidation it needed to maintain its stake at 50 per cent in DPC
after its completion.
In order to avoid any delay, Enron had agreed to meet up with the equity
shortfall as per the former's agreement with its lenders.
(THROUGH ASIA PULSE) 13-05 2001

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

Enron plans to pull out of Gulf gas project: MEED

05/13/2001
Agence France-Presse
(Copyright 2001)

DUBAI, May 13 (AFP) - Enron Corp. of the United States plans to pull out of a
project to deliver Qatari gas to the United Arab Emirates (UAE), Middle East
Economic Digest (MEED) reported on Sunday.
Enron is a partner in the Dolphin Energy project along with the
Franco-Belgian company TotalFinaElf and the Abu Dhabi government- owned UAE
Offsets Group (UOG). Its role is to build a pipeline under the Gulf between
Qatar and Abu Dhabi.
"The profit margin for Enron would be low. At present, the Dolphin project is
being developed primarily as an upstream venture," an industry source told
MEED.
Another industry publication, Middle East Economic Survey (MEES), reported
last week that the two other partners regarded Enron's estimated cost for
constructing and laying the 350-kilometre (220- mile) undersea pipeline as
too high.
"There is talk of new partners," a source with TotalFinaElf, whose role is to
develop a block in Qatar's giant North Field, told MEED. "But whatever
happens, we are staying."
On March 14, Qatar and the UAE inked a 25-year term sheet agreement on the
project, setting the volume at two billion cubic feet (20 million cubic
metres) of natural gas per day.
Differences over pricing and volumes had put back the signing of the
agreement for two years after a first statement of principle for Dolphin was
inked by Qatar and UOG in March 1999.
According to MEES, Qatar Petroleum and UOG have finally agreed on a gas price
formula of 1.3 dollars per million BTU (British thermal units) following
"high-level political intervention from Qatar and Abu Dhabi".
TotalFinaElf and Enron are strategic partners in the multi- billion-dollar
project, each holding a 24.5 percent share in Dolphin Energy Limited (DEL),
with UOG retaining a controlling 51 percent stake.
From Abu Dhabi, the gas is to be distributed inside the emirate and on to
Dubai and Oman. An extension to Pakistan through an undersea pipeline is also
planned, as part of a regional gas network.
hc/rp

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

BUSINESS
SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
CAROL RUST
Special to the Chronicle

05/13/2001
Houston Chronicle
2 STAR
1
(Copyright 2001)

KEMAH - Tom Lober trundled home from second grade with a three- tiered wooden
box he'd made at school.
"This is my houseboat," he told his mother 35 years ago. "When I grow up, I'm
going to live on a boat."
His practical-minded mother put the "boat" to work as a patio plant stand
until it finally rotted from a decade of exposure.
On a recent evening, Lober stood on the bow of one of his four charter
yachts, enjoying the sunset-tinted water and a mild breeze as the 100-foot
luxury boat moved quietly from Clear Lake into Galveston Bay.
"This is what I love," Lober said, scanning a horizon dotted with distant
boats. "The others are here to party, but this is it for me."
The founder and owner of Star Fleet Entertainment Yachts spoke calmly against
the din of a mini-Mardi Gras heating up on middeck, where bead-clad
executives were letting their hair down at their annual appreciation party
for a major customer. A Mae West look- alike hired for the event meandered
among them, handing out cigars and sultry comments in her mermaid-cut white
dress studded with faux pearls and a white feather boa twirled about her
neck.
In the eight and one-half years since the 42-year-old Lober started Star
Fleet, he's seen everything from fire-eaters to hula dancers as entertainment
on the hundreds of custom cruises his staff of 70 puts together each year.
Last year, the company booked 400 cruises, which translated into $2.3 million
in gross sales, in events ranging from Gulf Coast versions of company picnics
to a bat mitzvah with a Gilligan's Island theme. One guy recently plunked
down $2,000 to charter an entire boat for a date.
One of Lober's seven captains is, handily, a licensed minister for weddings.
Star Fleet staff recently added squirt guns, Hula Hoops and limbo sticks as
regular on-board equipment.
"It's a bizarre business," Lober said. "Nothing seems unusual anymore."
Nearly all Star Fleet's cruises include dinner. His kitchen staff does the
prep work for hors d'oeuvres and main courses on land near the marina,
transferring them to a generous galley on board before customers arrive. The
galley crew does the final cooking.
Star Fleet Entertainment Yachts is one of about a dozen businesses of its
size in the country that provides strictly private charter yacht cruises, but
Lober has hundreds of competitors locally.
"I'm competing with caterers, hotels, restaurants - anyone in the eating,
drinking and party business," he said. "People say there are two things
you're never supposed to own: a boat and a restaurant. I put a restaurant on
a boat."
Last month, he launched what he believes is the first-ever water limousine, a
30-foot yacht complete with wet bar, sound system, leather couches, TV and
VCR that takes small groups to waterfront restaurants and bars, just like a
limo does on land.
Sometimes, his clients hop off and dine at one of the restaurants on the
Kemah Boardwalk while the limo is anchored beside it. In other cases, waiters
deliver the food to the boat, equipped with removable dining tables that can
seat 14, and the customers dine while cruising Clear Lake.
Lober was a natural shoo-in for a career on the water. His father owned a
supply boat business in Houston and a fleet of shrimp boats based in
Trinidad. He eventually became president of his dad's supply boat business
after getting a master's degree in maritime management from Texas A&M
Maritime Academy in Galveston in 1981.
But he still had that idea from second grade that grew from living on a boat
to providing exclusive entertainment on the water.
In 1986, he joined the Passenger Vessel Association, a national group of
vessel owners that provides public or private cruises for gaming, ecotourism
or other entertainment. He attended seminars, talked to boat owners,
researched trends in the industry and tried to figure out what it would take
to float his idea.
Lober drew up plans for a boat big enough to accommodate up to 150
passengers, but with a three-foot draft to keep from running aground in the
notoriously shallow Clear Lake and Galveston Bay.
"I wanted to be able to take that boat anywhere on the lake," which is five
feet deep in places, he said.
Bankers were skeptical when he approached them for a loan.
"This was a new business in Houston that had never been done before," Lober
said. "They had no confidence.
"I finally got to the point where I'd just take my business plan into a bank
and say, `I know I'm not going to get a loan - just look at what I've got and
tell me what it needs,' " he said.
Even without a loan in place, Lober began hands-on research. During the week,
he still worked at his father's supply boat business, but flew to Fort
Lauderdale, Fla., on weekends to work as a deck hand and food server for a
charter yacht company to learn the business from the bottom up.
After a year of loan seeking, he found a lender at the Passenger Vessel
Association's annual meeting. Caterpillar Finance agreed to lend him 60
percent of the $950,000 in construction costs if he installed Caterpillar
engines on the boat.
Construction took a year, during which Lober continued his research, serving
drinks on weekends aboard a charter boat on the Detroit River and Lake St.
Clair.
Finally, Lober launched Star Gazer in October 1993.
The maritime academy might have taught him how to navigate by the stars, but
it didn't prepare him for marketing.
"I didn't know what I was doing," Lober said. "The first year, I spent
$125,000 in marketing blunders," including a $50,000 mass mail campaign that
he called "a total flop."
Marketing was twice as expensive as he thought it would be and took twice as
long for potential customers to understand the concept he was trying to sell,
he said. Meanwhile, his boat sat in the stall for up to three weeks at a
time.
Lober had a $30,000 monthly overhead in debt service, office rental,
insurance and slip fees, and "I still had to pay it if the boat didn't leave
once," he said.
Panicked, he joined the Greater Houston Partnership to seek out ideas, and he
got one: target marketing.
He and his small staff scrutinized every detail about the people who used the
boat and set out to find more like them. He set his sights on the corporate
client, which makes up about 70 percent of his business today. Corporate
customers include Enron, Exxon Mobil, Shell, Continental Airlines and Katy
Mills mall.
"We have had our party with Star Fleet every year for five years," said Ravi
Lal, director of ethylene division of Technip, based in San Dimas, Calif.
"The first year, I wanted to do something special that I hadn't seen before.
Everybody likes it, and everybody wants to come back."
Business slowly began to build, and word spread. Lober added the 90-foot Star
Cruiser in 1997, the 74-foot Star Spirit in 1999, and brought in a fourth,
the Lake Limo, last month. Also in 1999, he bought 6 acres with 600 feet of
waterfront and built Star Fleet Marina. While part of that land is still
undeveloped, it eventually will become a parking lot for 500 cars when Lober
adds a fifth large yacht, Star Ship, sometime in the future.
"We plan to add Star Ship when we're turning down enough business from the
other boats," he said.
After more than eight years, Lober has yet to take home a salary, putting
everything back into the business.
The more he puts back, the more business he can accommodate.
But Lober and his staff still keep close tabs on their customers.
"We track everything - which individuals, what type of event, whether they
prefer sit-down dinners, how they heard about us - you name it," he said.
It's a lot of details. He knows that blackout shades, pull-down projector
screens and multiple microphone jacks are needed for presentations, and that
some clients like to be picked up at one of the Galveston hotels or other
locations on the Houston Ship Channel.
If a customer hires a deejay, a crewmember provides padding to put underneath
the CD player on the bandstand because dancing on the steel dance floor
causes the player to bounce.
Lober's three full-time cruise consultants handle charter buses to and from
the marina, limos, menus, photographers and decorations. They work with Star
Fleet's in-house florist and theme designer to provide floral arrangements
for sit-down dinners and Hawaiian leis of fresh orchids and hibiscus for a
major retailer's party, for which the florist helped transform the boat's
stanchions into palm trees.
And consultants have their own suggestions, such as bestowing captains' hats
instead of the usual corsages to employees with top sales who were being
honored at a recent floating awards banquet.
Lober believes his company's custom service brings customers back.
"They handle all the details once, and after customers go on that first
cruise, they're sold on the concept," he said. "People love something
different. We provide a different kind of party. If they do it once, they
usually want to do it again."
But cruises aren't limited to parties, Lober said. Customers have chartered
boats for banquets, retreats, new product introductions, incentive awards
dinners and for scattering loved ones' ashes.
About 60 percent of Star Fleet's business is repeat and referral. The recent
corporate party featuring the Mae West look-alike was the fifth the company
has chosen to have with Star Fleet.
Part of Lober's initial marketing problem - which continues today - is that
Houstonians just don't realize how close to the water they are.
"It's not like Fort Lauderdale, where water is part of the landscape," he
said. "In Houston, there's no high-visibility location to see the water, just
one spot on Loop 610 that overlooks the Port of Houston. Even in Clear Lake,
there are only one or two places when you drive around the lake that you can
actually see the water. We don't have a San Francisco Bay or New York Harbor.
So people have to be reminded."
He also has to deal with the misconception that only the very rich can afford
cruises, Lober said.
"Some people think they can't afford a luxury yacht, but when they compare
our complete package with upscale restaurants, hotel banquet facilities,
country clubs and wedding manors, we are quite competitive," he said. "And
our food is gourmet quality. Just like a five-star hotel, we never cut
corners."
Event cruises start at $40 per guest including food, bar, entertainment, tax
and gratuities.
Lober depends heavily on customer surveys to develop the service he and his
crew provide. And customers informally give Star Fleet staff new ideas with
some of the extras they bring aboard, such as the squirt guns, Mardi Gras
beads, Hula Hoops and limbo sticks.
"We learn a lot from our customers," he said. "We see what they do, take the
best and give it back to them."
Because customer surveys indicate that about 20 percent of Star Fleet's
business comes from being seen on the water, Lober and his captains make
their crafts as visible as possible whenever they take them out. The real
opportunity for hot-dogging comes when a customer charters two or three
boats, and they raft up to become the Star Fleet flotilla, with customers
moving from one boat to another. A three-boat charter can handle up to 375
guests.
But one boat can still do a lot of advertising.
At the recent corporate party, Mae West joined the other revelers who were
slinging Mardi Gras beads at al fresco diners as Capt. Tony DeFore edged Star
Gazer close to the Kemah waterfront. They may not have known it, but they
were doing a little of Lober's public relations work for him.
As the boat pulled back into the Star Fleet Marina, Lober pointed out a barge
under construction. When it is finished - by the end of the year, he hopes -
the bottom floor will be a galley for food preparation, the second the Star
Fleet office and the third floor an 1,800-square-foot apartment.
It will kind of resemble that three-tiered wooden box he brought home from
school years ago, Lober says.
And he's going to live at the top.

Photos: 1-2. Left: Star Gazer, first of the Star Fleet Entertainment Yachts,
launched in 1993, sets sail for Southshore Harbor earlier this month. From
left to right are bartender Bridget Byous, server Leona Clark, Cruise
Director Edith Mitchell and President Tom Lober. Below: Cruise Director Edith
Mitchell unties the Star Gazer's bow line (color); 3. Star Fleet
Entertainment yachts President Tom Lober watches server Leona Clark polish
silverware for a buffet dinner aboard the Star Gazer. Last year, the company
booked more than 400 cruises, generating $2.3 million (color, p. 4)

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

More power to reform agenda
Soma Banerjee

05/13/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

THE electricity industry is often identified as the black sheep in the
infrastructure sector which has continued to lag behind despite an overdose
of government support.
Despite being one of the earlier industries to be opened up, private
investments in this sector have failed to take off.
Worse, the only sizeable project which was something to write home about
Enrons Dabhol Power plant in Maharashtra is currently a under cloud with its
promoters involved in a legal battle with the state entity and its sole
consumer for non-payment of bills. Policy makers and investors in the energy
sector are still groping to find ways and means to improve the performance of
this key industry.
Although private investments were expected to come in a big way in creating
new capacities, policy uncertainties and above all the poor financial health
of the consumer, in most cases the SEBs, have posed major problems for power
plant developers.
After about ten years of liberalisation, the private sector has to its credit
only about 5000 MW and according to projections by experts investments in
greenfield projects are unlikely before four to five years.
The factors that have been taken into consideration in the current projection
are almost inbuilt into the system. For one, there is a general agreement
that stressing on generation alone without doing much on the distribution
front has eroded the financial health of most SEBs.
``Private power developers cannot be expected to invest in projects till they
are assured that they will be paid for the energy produced, experts say.
But like the recent Montek Singh Ahluwalia report maintains, such reforms
cannot be done overnight and will require minimum five to seven years before
they break even.
The sector has already seen major exits like Cogentrix and Powergen and if
the current trends are anything to go by it would not be long before Enron
too says Sayonara India, claim sources in the power industry.
IPPAI, an association for private power investments, feels that the flip-flop
by the government as far as power policies are concerned have made it
difficult for investors to take decisions.
``Take this as an example at one time there were more than 200 MoUs signed up
for private power projects, the government provided counter guarantees for
eight projects, of which only three have taken off. Of this the Enron project
is already facing problems of nonpayment, says a senior source.
According to estimates drawn up by financial institutions like Power Finance
Corporation an organisation responsible for monitoring the financial health
of the SEBs and helping them with their reform programmes almost all the SEBs
have registered a negative turnover. Which is why the financing or
escrowability of SEBs across the country has been reduced to zero.
According to Union power minister Suresh Prabhu, the states are now
responsive to changes and reforms and the recent drive initiated by the
Centre to work with the state governments was expected to yield results.
But this sector has seen far too many committees which have failed to yield
much hope and it is only sheer determination of SEBs and political will that
can help this backbencher.

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

India Power Min: New Power Deal With Enron Unit Possible
By Himendra Kumar
Of DOW JONES NEWSWIRES

05/12/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- India is hopeful the Maharashtra State Electricity
Board's power purchase agreement with the U.S. energy company Enron Corp.'s
(ENE) Indian unit Dabhol Power Co. can be renegotiated and the DPC's dispute
over payments be settled, the country's federal Power Minister Suresh Prabhu
said.
In a weekend interview with Dow Jones Newswires, Prabhu said the very fact
that the DPC had come to the negotiating table for discussions on its power
price was an indication that Enron was keen to save its India project.
A special panel, set up by the Maharashtra state government, met with
representatives of the DPC, for the first time Friday and agreed to another
meeting May 23.
Friday's meeting lasted for more than two hours.
"I am of the view that a negotiated settlement is possible since the first
meeting of DPC with the Maharahtra state expert panel went off well. There
has been a positive response both from the DPC and the MSEB after the
meeting. The central government will also reciprocate by participating in a
meaningful dialogue. The next meeting will really decide on how it all goes,"
Prabhu said.
Earlier this week, in an e-mail to Dow Jones Newswires from Houston, Enron
Vice President John Ambler however, said, "While we have constantly
maintained that we are open to continuing a dialogue towards resolving
issues, this (Friday) meeting should in no manner be construed as an open
offer from DPC to renegotiate the terms of the contract."
The Maharashtra state government contends that the price paid for electricity
from the Dabhol power plant, India's biggest-ever foreign investment at $2.9
billion, is "unaffordable" and seeks to renegotiate tariffs.
A recent committee appointed by the government, the Godbole panel,
recommended that the power purchase agreement be renegotiated.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to Dabhol charging 7.1 rupees ($1=INR46.8825) a kilowatt-hour
for its power, compared with INR1.5/kwh charged by other suppliers.
The 2,184-megawatt DPC project in Maharashtra has been mired in financial
disputes after the Maharashtra State Electricity Board, its main customer,
failed to pay the December 2000 and January bills. The Godbole panel is
working toward lowering the DPC's power tariff and allowing the sale of
excess power to the federal government or its utilities. A restructuring of
the DPC's stakeholding may also be on the agenda.
The Maharashtra government has asked the committee to try to negotiate a
revised agreement within a month. The DPC currently operates a 740-megawatt
naphtha plant contributing about 0.7% to India's installed capacity. Enron
has maintained that work will be completed by the year-end in the second
phase of the Dabhol project that will add 1,444 MW to its capacity. The plant
will switch from naphtha to liquefied natural gas as a fuel source in 2002.
Texas-based Enron has a 65% stake in the DPC and is the project's largest
shareholder. Other shareholders include the MSEB with 15%, and General
Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427;
himendra.kumar@dowjones.com

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

India: Talks begin on Dabhol issue

05/12/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 11. OFFICIALS of Enron India today met the expert committee
headed by Dr Madhav Godbole to discuss the fate of Enron's Dabhol Power
Company.
Mr A.V. Gokak, Union Government representative, who was appointed only last
night, could not attend the meeting due to the short notice.
Lenders to the project who were to attend the meeting stayed away.
Instead, Mr A.G. Karkhanis, former Executive Director, Industrial Development
Bank of India, attended as observer on behalf of foreign and Indian lenders,
Mr Vinay Mohan Lal, Energy Secretary, told reporters here after the meeting.
When asked about Enron's reluctance to renegotiate, Mr Lal said: "They are
coming again on May 23. What does that mean?"
Though none of those present at the meeting was willing to give more details,
senior State Government officials had earlier told Business Line that the
State would be willing to discuss phase II only after a decision on the
rebate slapped on DPC.
"Basically our strategy will be to bring the Rs 401- crore rebate payable by
DPC to the centre-stage," the official said. "The company has not mentioned a
single word about the rebate in any of their letters to either the MSEB or
the State. And we, on the other hand, have discussed anything but the rebate
in our letters to DPC," he said.
Mr Wade Cline, Managing Director, Enron India, did not comment on whether the
company would issue the preliminary termination notice.
The Maharashtra State Electricity Board (MSEB) Chairman, Mr Vinay Bansal, and
Mr Lal had last evening briefed the Democratic Front constituents about their
stand vis-a-vis Enron.
They are understood to have told the political brass of the State that MSEB
does not need the second phase of the Dabhol power project.
They categorically said MSEB would not buy power from DPC-phase II, it is
learnt.
MSEB also reiterated its stand that DPC should adjust the dues owed by it
against the non-performance penalty.
Senior MSEB officials said the board had replied to the arbitration notice
issued by DPC and made its position clear. The board is of the opinion that
DPC should adjust Rs 213 crore - the December and January bills - against the
Rs 401 crore penalty for performance default.
The State Government also has backed the MSEB in its replies to the three
arbitration notices served on it. It has said that since MSEB does not accept
the charges - non-compliance with the power purchase agreement (PPA) -
leveled against it, the State is not bound to pay.
The Centre too is understood to have backed MSEB in its preliminary reply to
the conciliation notice from DPC.
Today's meeting was attended by Mr Cline, Mr Neil McGregor, President, DPC,
Mr Mukesh Tyagi, Vice-President, DPC, and Mr Sanjeev Khandekar, VP, DPC, and
Mr Mohan Gurunath, Chief Financial Officer, DPC.
Among the renegotiation panel members, Mr Deepak Parekh, Mr E A S Sarma and
Mr Kirit Parikh were also unable to attend. The next meeting is scheduled on
May 23, Mr Lal said.
Gokak nominated to panel: The Government has nominated former fertiliser and
telecom secretary, Mr A.V. Gokak, to the arbitration committee involving
Dabhol Power Company (DPC).
The Power Ministry had earlier mooted the additional solicitor general, Mr
Harish Salve's candidature for the job.
The conciliation process, however, has been hanging fire as the third
conciliator is yet to be appointed. Dabhol Power Company had written to the
Centre last month seeking six names for selection of a mutually acceptable
conciliator to kick- start the conciliation process.
DPC's letter to the Finance Ministry was seen in the context of the
substantial delay between the initiation of the conciliation process three
weeks ago and the finalisation of the conciliators. Soon after the
conciliation process was initiated, DPC decided to invoke political force
majeure and moved in for arbitration - a prelude to termination of the
project.
Our Bureau

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

India to allow 3rd party sale if DPC, MSEB jointly approach

05/12/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, May 12 (PTI) The Federal Government will allow sale of power to a
"willing buyer" if the Enron-promoted Dabhol Power Company (DPC) and
Maharashtra State Electricity Board (MSEB) will together approach the power
ministry with a concrete proposal for their 2,184 mw project in Dabhol.
"I will give whatever status they want, including a mega project one, if DPC
and MSEB jointly approach the Centre (Federal Government) for the same",
Indian Power Minister Suresh Prabhu told reporters here Saturday.
He said the Indian Government would extend its cooperation to the Maharashtra
government (western state) "in every way" to resolve the imbroglio between
MSEB and DPC.
When pointed out that both the state government and DPC were of the opinion
that federal power utility National Thermal Power Corporation (NTPC) should
buy the power, Prabhu said NTPC cannot do so as it was power selling entity
and not buying one.
"There is no question of NTPC buying power from the project since long term
power purchase agreements (PPAs) have been signed by NTPC with the buying
states", he reiterated.
Prabhu said the Indian Government would also try and find out potential
buyers of DPC power "if other states were willing to buy the same".
Earlier in his meeting with state chief minister Vilasrao Deshmukh, the
latter had suggested that NTPC sell the excess power over and above the
300-400 MW needed for the state from the 740 MW phase-I and soon to be
commissioned phase-II of 1,444 MW, to other needy states.
(THROUGH ASIA PULSE) 12-05 2001

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

LOCAL STORIES
DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
DAVE HOGAN AND JEFF MAPES of the Oregonian Staff

05/12/2001
Portland Oregonian
SUNRISE
C01
(Copyright (c) The Oregonian 2001)

Summary: The suggestion generates little enthusiasm and critics suspect it's
motivated by the lawmaker's possible race for governor
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets." -- U.S. REP. PETER DeFAZIO D-ORE.
The state of Oregon should consider buying investor-owned Portland General
Electric to help protect Oregonians from gyrations in the electricity market,
U.S. Rep. Peter DeFazio declared Friday.
Gov. John Kitzhaber reacted politely and said he'll explore the idea, but
others said it's a long shot because of political, financial and timing
factors.
Critics said the proposal appeared aimed more at attracting attention to
DeFazio's potential candidacy for governor than anything else.
Several companies already are considering buying the utility, but DeFazio
said state ownership could help keep PGE customers' electricity rates low and
generate profits that could help the rest of Oregon.
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets," said DeFazio, D-Ore.
PGE serves about 725,000 retail customers, mostly in the Portland area, and
is owned by Houston-based Enron Corp. PGE's sale to Nevada's Sierra Pacific
Resources for $3.1 billion officially fell apart last month. Other possible
buyers include Northwest Natural and ScottishPower, which owns PacifiCorp.
While Enron and PGE officials declined to comment Friday, legislative leaders
showed no particular enthusiasm for DeFazio's idea.
"I appreciate his efforts, but I don't think it's the right idea at this
time," said House Speaker Mark Simmons, R-Elgin. He said the state already
has a package of bills aimed at spurring more energy production and
conservation.
Senate President Gene Derfler, R-Salem, said he'd be willing to sit down and
talk with DeFazio. "I would not just shut the door," he said, but he doesn't
plan to devote much work to the proposal. Derfler questioned whether state
government could run a utility as efficiently as a business.
DeFazio said a PGE purchase would offer several benefits. State ownership
would put control of PGE in local hands instead of those of a faraway
corporation such as ScottishPower. For PGE customers, state ownership would
provide some protection and stability in electricity rates. It also would be
a good investment that would pay for itself and perhaps pump revenue back
into the state's coffers.
The purchase could be financed with tax-exempt bonds sold by the state.
DeFazio said state Treasurer Randall Edwards had told him the idea was "in
the realm of possibility."
DeFazio's idea is an intriguing one and could provide some benefits, said Bob
Jenks, executive director of the Citizens' Utility Board, which represents
customers of investor-owned utilities such as PGE.
Jenks said the primary benefit would be that, if the state bought PGE, the
utility would be able to buy lower-priced electricity from the Bonneville
Power Administration, which is required to sell power at lower rates to
publicly owned utilities. However, a publicly owned PGE wouldn't be able to
buy the lower-priced BPA power for about five years because of electricity
sales contracts that already are in place.
And even if PGE were able to buy lower-priced BPA power, that wouldn't
necessarily translate to lower electricity bills for PGE customers, Jenks
said. In addition, he said it could increase rates for other publicly owned
utilities because the BPA has a shortage of cheap hydropower.
The state Public Utility Commission would have to approve any sale of PGE,
but outgoing PUC Chairman Ron Eachus criticized DeFazio's proposal, saying it
had the potential to increase rates both for PGE customers and for publicly
owned utilities. He also said it seemed designed to get political attention
for DeFazio's potential candidacy.
"I think we're in the political season where people are proposing grandiose
schemes that aren't very well thought out, and this seems to be one of
those," Eachus said.
DeFazio conceded that a high-profile proposal focused on a Portland-area
issue such as the ownership of PGE would be a good way for a candidate to
build support for a run for governor, but he said that had nothing to do with
his plan.
You can reach Dave Hogan at 503-221-8531 or by e-mail at
davehogan@news.oregonian.com.

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

Congressman suggests state buy PGE
By CHARLES E. BEGGS
Associated Press Writer

05/11/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SALEM, Ore. (AP) - Congressman Peter DeFazio on Friday proposed that the
state buy Portland General Electric as a way to hold down power costs.
The Democrat outlined his plan after presenting it to Gov. John Kitzhaber,
who said he would ask his energy advisers to analyze it.
PGE is Oregon's biggest electric utility, serving more than 700,000
customers. DeFazio said a state purchase of the company could insulate many
Oregonians from "the craziness in power markets."
DeFazio said the state could buy the company by issuing revenue bonds and
have the utility operate as a public power entity.
He said the purchase would give the state a diverse mix of transmission
rights along with hydropower, gas, coal and renewable energy sources.
"While I have not exhaustively researched the proposal, it does appear to be
feasible," said DeFazio, an opponent of electric deregulation.
Enron Corp., the Texas-based owner of PGE, is trying to sell the utility.
Sierra Pacific last month abandoned its plan to buy PGE for $3.1 billion,
citing increasing difficulties in the current market and the political
environment in the West.
Kitzhaber said he's not opposed to the idea of the state buying a private
utility, as long as it would benefit consumers.
DeFazio said PGE has been a profitable company, and putting it in public
ownership could give it preference over private utilities for the Bonneville
Power Administration's hydropower.
The congressman's suggestion wasn't welcomed by the Legislature.
"Thanks, but no thanks," said House Speaker Mark Simmons.
"Philosophically, I think it's the wrong approach," he said. "We have a
bipartisan package of bills dealing with the issue."
Among those are his measure to delay partial electric deregulation for large
businesses and a bill to speed up the process for siting temporary generating
plants.
Senate President Gene Derfler didn't reject the idea, but said the
Legislature doesn't have enough time in the current session to take on a job
like a utility purchase.

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


I wasn't wanting to bother you with this as I was handling w/Jordan and co.,
but given our later issue re: the UK positions and Skilling's request for
component VaR for Agg Enron   (Ted's call to you just know), I'm forwarding
after all.

Cassandra.
---------------------- Forwarded by Cassandra Schultz/NA/Enron on 12/06/2000
03:04 PM ---------------------------

From:  Cassandra Schultz
       12/06/2000 01:55 PM

To: Michael Kass/EU/Enron@Enron, Chris Abel/HOU/ECT@ECT, James New/LON/ECT@ECT
cc: Oliver Gaylard/LON/ECT@ECT, David Port/Market Risk/Corp/Enron@ENRON, Mike
Jordan/LON/ECT@ECT, Shona Wilson/NA/Enron@Enron

Subject: Loss Notification - "Structured Derivatives"

Per discussion with Ted Murphy, P/L related to the Eastern spread options
should be included in our Loss Notification monitoring in accordance with the
Risk Management Policy.  However, my understanding is that the positions and
VaR are captured in European Gas and UK Power, but the P/L is reported
separately in "Structured Derivatives".  This reporting is perhaps further
complicated by related prudencey being released in the line item European
Gas.

The 12/5 DPR reflects a ($43MM) loss in Structured Derivatives, and Oliver
indicated this represents the market moving against our Eastern spread option
position.  This is a Ken Lay level notification by any measurement standards,
regardless of whether you compare it to the $7,500 VAR limit for Gas, or the
$15,300 VaR limit for UK Power. Or even split it between them.

Chris, please include this loss in today's notification letters to Ken Lay
and Jeff Skilling for the 5th.  Per Oliver, the loss was due to power price
curve shift and gas volatility curve shift against the Eastern spread options.

Going forward, James, perhaps you could work with Oliver and the commercial
team to determine a reasonable methodology to support the allocation of P/L
and related DPR reporting  for these positions so we can continue to evaluate
in compliance with the policy.

Thank you,
Cassandra.


1/00 Plan Allocations for RC 1497 - Farmer:

15%  Gas Network Services
84% Gas Network Trading
1%   Gas Network Development -->  Time spent on Project Sally was primarily
determining the estimated number of employees required to perform the
Trading Support functions and reading the deal memorandum.

Daren


As to ENA swaps, upon discussion with Andrea and Ryan there will be no
language included in the provision in respect of trying to define when
something is or is not deemed reasonably withheld.  See below.  Sara is
discussing the Avici swap with EBS.  I am going to prepare the ENA confirms
on this basis.

The (i) Termination Date and (ii) each date specified as such in a written
notice from either party to the other party with respect to a designated
Number of Shares specified in the notice (the "Notice"), to which the party
receiving such notice consents, which consent shall not be unreasonably
withheld.  For the avoidance of doubt, a Notice shall be sent from either
party to the other party on the Termination Date.

Enron North America Corp.
Mary Cook
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com

	Ryan Siurek@ENRON
	09/06/2000 02:31 PM

		 To: Mary Cook/HOU/ECT@ECT, Julia H Chin/NA/Enron@Enron, Kristina
Mordaunt/Enron Communications@Enron Communications, AnnMarie
Tiller/Corp/Enron@ENRON, Ryan Siurek/Corp/Enron@ENRON, Andrea V
Reed/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Vaulation Date Raptor Language: RUSH

Mary,

Per your e-mail, I would like to delete (ii) in the defininition of
"reasonably withheld" as there is only one party that has a possibility to
have a material unhedged position (ie. Enron).

Thanks,

Ryan

The (i) Termination Date and (ii) each date specified as such in a written
notice from either party to the other party with respect to a designated
Number of Shares specified in the notice (the "Notice"), to which the party
receiving such notice consents, which consent shall not be unreasonably
withheld.  For purposes of this Confirmation, the parties agree that consent
shall be deemed reasonably withheld (i) if the party receiving the Notice has
a reasonable business purpose for maintaining the Transaction (excluding any
business purpose relating specifically to the existing or anticipated value
of the Transaction or any other Transaction subject to the Agreement) or (ii)
if consenting to the Notice would result in a material unhedged exposure or
liability for the party receiving the Notice.  For the avoidance of doubt, a
Notice shall be sent from either party to the other party on the Termination
Date.

---------------------- Forwarded by Ryan Siurek/Corp/Enron on 09/06/2000
02:25 PM ---------------------------

MARY COOK@ECT
09/06/2000 01:06 PM
To: Julia H Chin/NA/Enron@Enron, Kristina Mordaunt/Enron Communications@Enron
Communications, AnnMarie Tiller/Corp/Enron@ENRON, Ryan
Siurek/Corp/Enron@ENRON, Andrea V Reed/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT,
Sara Shackleton/HOU/ECT@ECT
cc: Mark Taylor/HOU/ECT@ECT

Subject: Vaulation Date Raptor Language:  RUSH

Kristina, please forward as you deem necessary to EBS persons for final
approval.  Thank you.

Please see attached language concerning the Raptor swaps in respect of the
Valuation Date mechanism and advise me as soon as possible of your approval
or comments, if any.  We are trying to finalize all public swaps (save Active
Power) today, so your timeliness will be GREATLY appreciated by me!  Mary


Kate,

Please approve and autoschedule deal # 533948.

Les


I met with Karen Marshall today.  She is in the Community Relations group and
is organizing the dinner on September 7th.  I suggested that she add to the
invitation list the other interviewers this year for the scholarships (Roger
Ondreko and Gene Humphrey), Brent Price and Loftis Fitzwater (one of last
year's scholarhip recepients who started with us as an Associate this
summer).  I have also volunteered to coordinate with the University on
appropriate attendees, as some of Karen's info is dated and she does not know
people at the school. I will keep you posted.  --Sally
---------------------- Forwarded by Sally Beck/HOU/ECT on 08/22/2000 03:53 PM
---------------------------

	From:  Karen Marshall                           08/21/2000 01:41 PM

To: bob.may@bus.utexas.edu, Philip.zerrillo@bus.utexas.edu,
Brittf@mail.utexas.edu, eronn@mail.utexas.edu, GGau@mail.utexas.edu,
hadawayb@mail.utexas.edu, Mkllg@mail.utexas.edu, Eloy.garcia@bus.utexas.edu,
gina.longoria@bus.utexas.edu, Jonathan.edwards@bus.utexas.edu,
katie.george@bus.utexas.edu, Sally Beck/HOU/ECT@ECT, Thomas
Suffield/Corp/Enron@ENRON, Cindy Justice/HOU/ECT@ECT, Celeste
Roberts/HOU/ECT@ECT, Charlene Jackson/Corp/Enron@ENRON, Cindy
Olson/Corp/Enron@ENRON, Richard Causey/Corp/Enron@ENRON, David
Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Elyse Kalmans/Corp/Enron@ENRON,
Karen Marshall
cc: Melinda.nelson@bus.utexas.edu
Subject: Enron MBA Excellence Fund Scholars Dinner

Attached is the Enron MBA Excellence Fund Scholars Dinner invitation.  RSVP
Karen Marshall at 713-853-7632 or Melinda Nelson at 512-471-7603.


Expensed them.


Done.

Gregory Carraway
01/18/2001 03:22 PM
To: Errol McLaughlin/Corp/Enron@ENRON
cc:

Subject: Re: Gas Daily deals in dispute

Sorry, I meant to put QD9473, instead of QD8473. Could you let me know when
it is changed? Thanks!!!


Dear Amazon.com Customer,

With the countdown to the holidays getting shorter all the time, it's
easy to think you won't get everything done. But don't worry--we've
got you covered with a huge selection, creative gift ideas, and lots
of ways to get it there.

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So stop by Amazon.com today--and discover how easy it can be to find,
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PS: For help with how to ship that perfect gift, check out our Holiday
Ordering Deadlines page. It has all you need to know to ensure
delivery by December 24.

http://www.amazon.com/ordering-deadlines

We hope you enjoyed receiving this message. However, if you'd rather
not receive future e-mails of this sort from Amazon.com, please visit
the Help page Updating Subscriptions and Communication Preferences
through the link below, then click the Customer Communication
Preferences link.

http://www.amazon.com/unsubscribe

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

jdasovic@enron.com


I couldn't get my e-mail to work, so I am using Randy's..... I am having
trouble selling our length on PG&E for November.  Is there any way we
can settle financially instead of selling the imbalance.  (it is around
16,000).

Let me know

Kim Olinger


---------------------- Forwarded by Ben Jacoby/HOU/ECT on 05/09/2000 11:26 AM
---------------------------

	Enron North America Corp.

	From:  Ben F Jacoby                           04/27/2000 07:07 PM

Sent by: Ben Jacoby
To: Mike J Miller/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT, Tammy R
Shepperd/HOU/ECT@ECT, Carl Tricoli/Corp/Enron@Enron
cc: John Moore/Corp/Enron@Enron, Debbie Chance/Corp/Enron@Enron, Raimund
Grube/Corp/Enron@ENRON, Jeffrey M Keenan/HOU/ECT@ECT, Dave
Kellermeyer/HOU/ECT@ECT, Greg Krause/Corp/Enron@Enron, Steve
Krimsky/Corp/Enron@Enron, Fred Mitro/HOU/ECT@ECT, Stephen
Plauche/Corp/Enron@Enron, Rusty Stevens/Corp/Enron@ENRON, Bruce
Sukaly/Corp/Enron@Enron
Subject: IPP Project Development Report Update

Attached please find an updated development report. Please let me know if you
have any questions.

Regards,

Ben


I sent in the admission fees, so hope you still want to go.

---------------------- Forwarded by Gerald Nemec/HOU/ECT on 07/30/99 08:21 AM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  giordano@wt.net                           07/27/99 02:15 AM

Please respond to giordano@wt.net
To: Gerald Nemec/HOU/ECT
cc:
Subject: Re: Tasting List for August 5th

>Greg,  I have never been to a tasting before.  Will there be some small foods
to
>go along with the wine?
>

Yes, we will have cheese, fruit and bread to accent the wine.

Greg Giordano,
Director


Here is the latest margin rate change -
----- Forwarded by Sara Shackleton/HOU/ECT on 12/06/2000 04:19 PM -----

	exchangeinfo@nymex.com
	12/04/2000 02:08 PM

		 To: sara.shackleton@enron.com
		 cc:
		 Subject: (00-414) Margin Rate Change for Natural Gas

Notice No. 00-414
December 04, 2000

TO:
ALL NYMEX MEMBERS AND MEMBER FIRMS
ALL NYMEX CLEARING FIRMS
ALL NYMEX OPERATIONS MANAGERS

FROM: Neal Wolkoff, Executive Vice President

SUBJECT: MARGIN RATE CHANGE

Effective Date: Tuesday, December 05, 2000 (close of business)

Futures Contract: Henry Hub Natural Gas Futures

Contract Months: All Months

Rate Change:
NYMEX Division Margins on Henry Hub Natural Gas Futures Contracts
Effective Date: Tuesday, December 05, 2000 (close of business)

Clearing Member (Maintenance Margin): Old: $7,500  New: $10,000
Member Customer (Initial Margin): Old: $8,250  New:  $11,000
Non-Member Customer (Initial Margin): Old: $10,125  New:  $13,500

Should you have any questions regarding these changes, please contact Arthur
McCoy at (212) 299-2928 or Joe Sanguedolce at (212) 299-2855.  This notice
supersedes all previous notices regarding outright margins for the NYMEX
Henry Hub Natural Gas Futures Contract.

__________________________________________________
Please click on the link below to indicate you have received this
email.

"
http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&r
efdoc=(00-414)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.


Start Date: 4/17/01; HourAhead hour: 4;  No ancillary schedules awarded.
Variances detected.
Variances detected in Energy Import/Export schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041704.txt

---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 4 / Preferred:  12.00 / Final:  11.98)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/17/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_ERNIE
  ENGY_TYPE: WHEEL


Dan's cell 917-757-0519


I know your ad said that you wouldn't reply to anything without a picture but I'm not really computer literate yet and I thought your posting was interesting.  Energy law is a hobby for me right now since I'm an electricity trader for Enron.  Anyway, I'm not really looking for anything more than to meet some new people.  Hanging around traders all the time gets a little out of control and leads to meeting the wrong girls.  If you want to email let me know.

ryan


Hey, I, for some reason, just got your email.  Anyway,  I'll try to call you
later in the morning, but if you want to call me at work my # is
713-853-0472.  Talk to you soon.

Mat


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/02/2001
03:09 PM ---------------------------

"RiskNews Update" <listadmin@riskwaters.com> on 03/02/2001 12:30:06 PM
To: List Member <vkamins@enron.com>
cc:
Subject: - latest RiskNews Update - 02/03/2001

RiskNews Update - http://www.RiskNews.net

RiskNews Update - http://www.risknews.net/

===================================================================
RiskNews Update - week ending 02/03/2001
http://www.RiskNews.net
News for derivatives and risk management professionals
===================================================================

Dear Subscriber,

Welcome to RiskNews Update!

An innovative Argentine bond issue that gained an above-sovereign rating,
Enron,s moves to create a European bandwidth boom, further clever
catastrophe protection from Swiss Re and awareness of a potential increase
in institutional trading costs through the decimalisation of US equity
markets represented some of the key headlines this week.

The political risk insurance deal was put together by Sovereign Risk
Insurance, a Bermuda-based joint venture between ACE and XL Insurance,
which raised Argentina,s Salta Hydrocarbon Royalty Trust,s note issue to
investment grade debt. Notably, the ranking was higher than Argentina,s
sovereign rating. Given the Basel Committee,s endorsement, similar deals
are likely to emerge elsewhere.

Enron, meanwhile, believes a liquid European bandwidth market will emerge
within a year. The US firm is significantly ramping up its European energy
operations.

Swiss Re, which first put together earthquake protection deals in
California in 1997, has developed yet another innovative reinsurance and
investment capital deal to give $100 million protection to policyholders
of the California Earthquake Authority.

Meanwhile, the move to decimalisation and minimum price increments of one
penny in the US equity markets could result in an overall decline in
market liquidity and higher costs for institutional client trades
according to research by US investment bank Goldman Sachs (see top story).

Christopher Jeffery
Editor, RiskNews

Tel: 44 (0)20 7484 9880
mailto:cjeffery@riskwaters.com

LOOK >>> Exclusive offer for subscribers of www.RiskNews.net ONLY! The
Risk 2001 Europe Event

Risk Magazine,s 6th Annual European Derivatives And Risk Management
Congress held in Paris on 10 & 11 April 2001. Book NOW for Risk 2001
Europe and get 10% off the TOTAL cost of the event. Click here to go
directly to the booking form:
https://secure.riskpublications.com/secure/conferences/risk2001europe/risk2001
europe_risknews.htm

-----------------------------------------------------------------
Don't miss this exclusive offer for you, or your colleagues, to receive a
FREE copy of the March issue of Energy and Power Risk Management (worth US
$33/o22/E39). Energy and Power Risk Management is a market leader,
providing all the essential information you need on the new developments,
issues and risks facing the global energy and power markets. Click here
for the latest issue and the FREE offer:
http://www.EPRMonline.com/freeissue_frame/index.htm?caller=RWG_update
------------------------------------------------------------------

RiskNews Update - 02/03/01

Headlines/ Technology and Exchanges/ People/ Events

===================================================================
Headlines - 02/03/2001
===================================================================

2 March ) The move to decimalisation and minimum price increments of one
penny in the US equity markets could result in an overall decline in
market liquidity, and higher costs for institutional client trades.

2 March - London-based online risk consulting boutique Reech Capital has
acquired French derivatives consultancy and application services provider
services firm Netquant

2 March - Swiss Re New Markets and Goldman Sachs have used a combination
of reinsurance and investment capital to arrange $100 million in funds
that would be made available to California Earthquake Authority
policyholders in the event of one or more earthquakes during the next 23
months

1 March - Enron Broadband Services, a wholly owned subsidiary of
Houston-based electricity, gas and communications company, Enron
Corporation, has launched online bandwidth trading in Europe

28 February - BNP Paribas Commodity Futures, a subsidiary of BNP Paribas,
has launched a 24-hour energy futures and options brokerage service

28 February - Morgan Stanley Capital International has launched its new
real-time index service, which includes indexes for derivative products
that are updated every 15 seconds and are designed specifically for trading

27 February - Rumblings that China is planning to widen the trading band
of the renminbi or break its peg with the US dollar have gone on for
years, but People's Bank of China officials recently appear to have been
testing the market's reaction

26 February - Sovereign Risk Insurance, a Bermuda-based joint venture
between ACE and XL Insurance, has sold a political risk insurance policy
that will raise an emerging markets bond issue from sub-investment grade
to investment grade

26 February - The International Swaps and Derivatives Association is
launching a new credit derivatives committee to deal with issues related
to trading practices

To read more now, click http://www.risknews.net

*******************************************************************
The launch issue of TELECOMS CAPACITY is OUT NOW! Click here for your FREE
copy (worth $27). Additionally, take advantage of our LIMITED SUBSCRIPTION
OFFER and save 25% off if you subscribe before 30 April 2001. You will
find both these offers and features from the launch issue available on
http://www.TelecomsCapacity.com

===================================================================
Technology and Exchanges - 02/03/2001
===================================================================

2 March - The European Energy Exchange (EEX) yesterday launched Germany's
first electricity futures market, ahead of rival Leipzig Power Exchange
(LPX), which plans to introduce a competitor service within the next few
months

2 March - The Chicago Board Options Exchange, the world's largest options
exchange, will launch its new screen-based trading system, CBOEdirect, at
the beginning of June

1 March - Goldman Sachs has added online exotic FX options in five
currency pairs to its WebET internet trading system

1 March - Dublin-based alternative trading and asset management firm
Greenhouse Capital Management is to replace its back-office risk
management systems with futures and options software developed by France's
Ubitrade, formerly known as ATSM

1 March - Eurex's electronic trading platform has started auctioning repos
in the form of Swiss-registered money-market claims and Swiss federal bonds

28 February - Global over-the-counter derivatives electronic brokerage
Icor, which has been beaten to market by chief rival Volbroker, has
received a significant cash injection from the alternative investment fund
unit of US insurance broker Arthur J Gallagher

27 February - Bank of Tokyo-Mitsubishi is building its online foreign
exchange dealing capacity using Cognotec's AutoDeal Lite service

26 February - Merrill Lynch Investment Managers (MLIM) plans to strengthen
its control of the credit and counterparty risk in its portfolios of
assets under management by licensing an integrated risk management
software package called Risk Vision from MKIRisk

26 February - The European securities arm of Bank of Tokyo-Mitsubishi,
Tokyo-Mitsubishi International, is to use risk management software
supplied by Canada's Algorithmics to manage its collateral risk for its
derivatives trading activities

To read more now, click http://www.risknews.net

*******************************************************************
Have you seen the results of the joint Energy & Power Risk Management/Risk
magazines' over-the-counter commodity derivative rankings? What have been
the big changes in the past 12 months? Click here for online coverage:
http://www.EPRMonline.com

===================================================================
People - 02/03/2001
===================================================================

2 March - BNP Paribas has appointed Sylvie Durham as head of corporate
equity derivative products for North America. In the newly created
position, Durham will be responsible for originating and marketing
structured equity products for BNP Paribas' corporate client base

2 March - US investment bank Merrill Lynch has hired 10 new derivatives
and capital market executives in its EMEA region, to boost its presence in
a series of potential growth areas

1 March - New York-based trading and risk management software provider
Summit Systems has appointed Joseph Bruno as its new director of sales, in
an effort to concentrate on the sales side of the business

1 March - Tony McCormick, vice-president of derivatives markets at Charles
Schwab, has been appointed to the board of directors at the Chicago Board
Options Exchange

28 February - Dresdner Kleinwort Wasserstein, the investment banking arm
of Germany's Dresdner Bank, has appointed David Schwartz, Richard Fedrick,
Sylvie Botter and Roland Toussaint to its global debt derivatives
marketing team, in a bid to expand its derivatives business

28 February - Rob van Paridon, US head of wholesale client business at ABN
Amro, has been selected to succeed Erik Post as head of the Dutch bank's
global futures business

To read more now, click http://www.risknews.net

*******************************************************************
SPECIAL OFFER from Risk Books: Buy any two Credit titles and get a third
of your choice absolutely FREE! Click here for the Credit book titles:
http://www.riskbooks.com/cluster_credit.shtml

==================================================================
Events - 02/03/2001
===================================================================

Risk 2001 Europe ) Risk magazine,s 6th annual European derivatives and
risk congress,
10 & 11 April, Paris

At this year,s Risk Europe Congress, an entire stream is dedicated risk
management for investment managers. Key speakers on this stream include:

Malcolm Kemp, Zurich Scudder Investments Limited,
David Mordecai, University of Chicago
Michael de Marco and Erwin Martens, Putnam Investments
Stephen Rees, Baring Asset Management
Dr B. Scherer, Deutsche Asset Management
Kenrick Ramlochan, Bank of America
Kelsey Biggers, Measurisk
Pim Poppe, Robeco Group
Donna Marie Howe, ABN Amro
Peter Davies and Dr P. K. Satish, Askari
Michelle McCarthy, Deutsche Bank Group
Edward Fishwick, AXA Investment Management

(http://www.risk-conferences.com/risk2001euro)

At no other event will you hear from these leading market participants,
who will deliver cutting-edge presentations, focusing on the key risk
management issues facing the investment industry in Europe.

Congress keynote presentations from:
Bob Litzenberger, Goldman Sachs
Andrew W. Lo, Massachusetts Institute of Technology

Other conferences coming soon:

Monte Carlo techniques, London 8 & 9 March 2001; New York 12 & 13 March
2001
Accounting for energy derivatives, Houston 26 & 27 March 2001
Practical accounting for derivatives, London 2 & 3 April 2001; New York 19
& 20 April 2001
ALM 2001 ) Risk Magazine,s 7th annual Conference ) New York 21 & 22 June
2001
Risk 2001 USA ) Risk magazine,s 7th annual US derivatives and risk
management congress, Boston 12 & 13 June 2001.

For further information contact: http://www.risk-conferences.com
http://www.risktraining.com

===================================================================
All of Risk Waters Group online services can be accessed through
http://www.riskwaters.com

______________________________________________________________________
To unsubscribe, write to financewise-unsubscribe@listbot.com


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 01/30/2001
11:21 AM ---------------------------

Susan J Mara@ENRON
01/30/2001 09:14 AM
To: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly
Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol
Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT,
Christina Liscano/HOU/EES@EES, Christopher F Calger/PDX/ECT@ECT, Craig H
Sutter/HOU/EES@EES, Dan Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES,
Dennis Benevides/HOU/EES@EES, Don Black/HOU/EES@EES, Dorothy
Youngblood/HOU/ECT@ECT, Douglas Huth/HOU/EES@EES, Edward
Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES, Erika Dupre/HOU/EES@EES,
Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES, Frank W
Vickers/HOU/ECT@ECT, Gayle W Muench/HOU/EES@EES, Ginger
Dernehl/NA/Enron@ENRON, Gordon Savage/HOU/EES@EES, Harold G
Buchanan/HOU/EES@EES, Harry Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES,
James D Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James
Wright/Western Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES,
Jeremy Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe
Hartsoe/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Kathy
Bass/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin
Hughes/HOU/EES@EES, Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES,
Mark S Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES,
Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael
Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, Mike M Smith/HOU/EES@EES,
mpalmer@enron.com, Neil Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul
Kaufman/PDX/ECT@ECT, Paula Warren/HOU/EES@EES, Richard L
Zdunkewicz/HOU/EES@EES, Richard Leibert/HOU/EES@EES, Richard
Shapiro/NA/Enron@ENRON, Rita Hennessy/NA/Enron@ENRON, Robert
Badeer/HOU/ECT@ECT, Roger Yang/SFO/EES@EES, Rosalinda Tijerina/HOU/EES@EES,
Sandra McCubbin/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Scott
Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Sharon Dick/HOU/EES@EES,
skean@enron.com, Susan J Mara/NA/Enron@ENRON, Tanya Leslie/HOU/EES@EES, Tasha
Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri Greenlee/NA/Enron@ENRON, Tim
Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES, Vicki Sharp/HOU/EES@EES,
Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES, William S
Bradford/HOU/ECT@ECT, Jubran Whalan/HOU/EES@EES, triley@enron.com, Richard B
Sanders/HOU/ECT@ECT, Robert C Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
dwatkiss@bracepatt.com, rcarroll@bracepatt.com, Donna
Fulton/Corp/Enron@ENRON, gfergus@brobeck.com, Kathryn
Corbally/Corp/Enron@ENRON, Bruno Gaillard/EU/Enron@Enron, Linda
Robertson/NA/Enron@ENRON, Phillip K Allen/HOU/ECT@ECT, Ren, Lazure/Western
Region/The Bentley Company@Exchange, Michael Tribolet/Corp/Enron@Enron,
Phillip K Allen/HOU/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Richard B
Sanders/HOU/ECT@ECT, jklauber@llgm.com, Tamara Johnson/HOU/EES@EES, Gordon
Savage/HOU/EES@EES, Donna Fulton/Corp/Enron@ENRON, Robert C
Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject: CPUC posts audit reports

Here's the link for the audit report
----- Forwarded by Susan J Mara/NA/Enron on 01/30/2001 08:53 AM -----

	andy brown <andybrwn@earthlink.net>
	01/29/2001 07:27 PM
	Please respond to abb; Please respond to andybrwn

		 To: carol@iepa.com
		 cc: "'Bill Carlson (E-mail)'" <william_carlson@wastemanagement.com>, "'Bill
Woods (E-mail)'" <billw@calpine.com>, "'Bob Ellery (E-mail)'"
<bellery@spi-ind.com>, "'Bob Escalante (E-mail)'"
<rescalante@riobravo-gm.com>, "'Bob Gates (E-mail)'" <bob.gates@enron.com>,
"'Carolyn A Baker (E-mail)'" <cabaker@duke-energy.com>, "'Cody Carter
(E-mail)'" <cody.carter@williams.com>, "'Curt Hatton (E-mail)'"
<Curt.Hatton@gen.pge.com>, "'Curtis Kebler (E-mail)'"
<curtis_l_kebler@reliantenergy.com>, "'David Parquet'"
<david.parquet@enron.com>, "'Dean Gosselin (E-mail)'"
<dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'"
<fernley.doug@epenergy.com>, "'Douglas Kerner (E-mail)'" <dkk@eslawfirm.com>,
"'Duane Nelsen (E-mail)'" <dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'"
<ed.tomeo@uaecorp.com>, "'Eileen Koch (E-mail)'" <eileenk@calpine.com>,
"'Eric Eisenman (E-mail)'" <eric.eisenman@gen.pge.com>, "'Frank DeRosa
(E-mail)'" <frank.derosa@gen.pge.com>, "'Greg Blue (E-mail)'"
<gtbl@dynegy.com>, "'Hap Boyd (E-mail)'" <Hap_Boyd@enron.com>, "'Hawks Jack
(E-mail)'" <jack.hawks@gen.pge.com>, "'Jack Pigott (E-mail)'"
<jackp@calpine.com>, "'Jim Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe
Greco (E-mail)'" <jgreco@caithnessenergy.com>, "'Joe Ronan (E-mail)'"
<joer@calpine.com>, "'John Stout (E-mail)'" <john_h_stout@reliantenergy.com>,
"'Jonathan Weisgall (E-mail)'" <jweisgall@aol.com>, "'Kate Castillo
(E-mail)'" <CCastillo@riobravo-gm.com>, "Kelly Lloyd (E-mail)"
<kellyl@enxco.com>, "'Ken Hoffman (E-mail)'" <khoffman@caithnessenergy.com>,
"'Kent Fickett (E-mail)'" <kfickett@usgen.com>, "'Kent Palmerton'"
<kent.palmerton@williams.com>, "'Lynn Lednicky (E-mail)'" <lale@dynegy.com>,
"'Marty McFadden (E-mail)'" <marty_mcfadden@ogden-energy.com>, "'Paula Soos'"
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'"
<rjhickok@duke-energy.com>, "'Rob Lamkin (E-mail)'"
<rllamkin@seiworldwide.com>, "'Roger Pelote (E-mail)'"
<roger.pelote@williams.com>, "'Ross Ain (E-mail)'"
<rain@caithnessenergy.com>, "'Stephanie Newell (E-mail)'"
<stephanie-newell@reliantenergy.com>, "'Steve Iliff'"
<siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'" <steve_ponder@fpl.com>,
"'Susan J Mara (E-mail)'" <smara@enron.com>, "'Tony Wetzel (E-mail)'"
<twetzel@thermoecotek.com>, "'William Hall (E-mail)'"
<wfhall2@duke-energy.com>, "'Alex Sugaoka (E-mail)'"
<alex.sugaoka@uaecorp.com>, "'Allen Jensen (E-mail)'"
<al.jensen@nrgenergy.com>, "'Andy Gilford (E-mail)'"
<agilford@wbcounsel.com>, "'Armen Arslanian (E-mail)'"
<Armen.Arslanian@gecapital.com>, "Bert Hunter (E-mail)"
<rjhunter@spectrumcapital.com>, "'Bill Adams (E-mail)'" <sangorgon@aol.com>,
"'Bill Barnes (E-mail)'" <bill.barnes@lgeenergy.com>, "'Bo Buchynsky
(E-mail)'" <BBuchynsky@aol.com>, "'Bob Tormey'" <rjtormey@duke-energy.com>,
"'Charles Johnson (E-mail)'" <c.johnson@ejgd.com>, "'Charles Linthicum
(E-mail)'" <charles.linthicum@powersrc.com>, "'Diane Fellman (E-mail)'"
<difellman@energy-law-group.com>, "'Don Scholl (E-mail)'"
<dscholl@purenergyllc.com>, "'Ed Maddox (E-mail)'"
<emaddox@seawestwindpower.com>, "'Edward Lozowicki (E-mail)'"
<elozowicki@sjo.coudert.com>, "'Edwin Feo (E-mail)'" <efeo@milbank.com>,
"'Eric Edstrom (E-mail)'" <edstrome@epenergy.com>, "'Floyd Gent (E-mail)'"
<fgent@thermoecotek.com>, "'Hal Dittmer (E-mail)'" <hedsf@aol.com>, "'John
O'Rourke'" <orourke.john@epenergy.com>, "'Kawamoto, Wayne'"
<wkawamoto@wm.com>, "'Ken Salvagno (E-mail)'" <kbssac@aol.com>, "Kent Burton
(E-mail)" <kent_burton@ogden-energy.com>, "'Larry Kellerman'"
<kellerman.larry@epenergy.com>, "'Levitt, Doug'" <sdl@calwind.com>, "'Lucian
Fox (E-mail)'" <lucian_fox@ogden-energy.com>, "'Mark J. Smith (E-mail)'"
<mark_J_smith@fpl.com>, "'Milton Schultz (E-mail)'" <bfpjv@c-zone.net>, "'Nam
Nguyen (E-mail)'" <nam.nguyen@powersrc.com>, "'Paul Wood (E-mail)'"
<paul_wood@ogden-energy.com>, "'Pete Levitt (E-mail)'" <Pete@calwind.com>,
"'Phil Reese (E-mail)'" <rcsc@west.net>, "'Robert Frees (E-mail)'"
<freesrj@apci.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>, "'Scott
Harlan (E-mail)'" <harlans@epenergy.com>, "'Tandy McMannes (E-mail)'"
<mcmannes@aol.com>, "'Ted Cortopassi (E-mail)'"
<ted_cortopassi@ogden-energy.com>, "'Thomas Heller (E-mail)'"
<hellertj@apci.com>, "'Thomas Swank'" <swank.thomas@epenergy.com>, "'Tom
Hartman (E-mail)'" <tom_hartman@fpl.com>, "'Ward Scobee (E-mail)'"
<wscobee@caithnessenergy.com>, "'Brian T. Craggq'" <bcragg@gmssr.com>, "'J.
Feldman'" <jfeldman@mofo.com>, "'Kassandra Gough (E-mail)'"
<kgough@calpine.com>, "'Kristy Rumbaugh (E-mail)'"
<kristy_rumbaugh@ogden-energy.com>, "Andy Brown (E-mail)"
<abb@eslawfirm.com>, "Jan Smutny-Jones (E-mail)" <smutny@iepa.com>, "Katie
Kaplan (E-mail)" <kaplan@iepa.com>, "Steven Kelly (E-mail)" <steven@iepa.com>
		 Subject: CPUC posts audit reports

This email came in to parties to the CPUC proceeding.  The materials should
be available on the CPUC website, www.cpuc.ca.gov.  The full reports will be
available.  ABB

Parties, this e-mail note is to inform you that the KPMG audit report will be
posted on the web as of 7:00 p.m on January 29, 2001.  You will see
the following documents on the web:

1. President Lynch's statement
2. KPMG audit report of Edison
3. Ruling re: confidentiality

Here is the link to the web site:
http://www.cpuc.ca.gov/010129_audit_index.htm

--
Andrew Brown
Sacramento, CA
andybrwn@earthlink.net


Hey you said I could delete this one.  Yea!!

Elizabeth L Hernandez
05/22/2000 10:26 AM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Price disc. on deal 231760 for 04/00

Can you confirm the price on deal 231760 for Lisa Valderrama.
---------------------- Forwarded by Elizabeth L Hernandez/HOU/ECT on
05/22/2000 10:25 AM ---------------------------

Robert Allwein
05/22/2000 10:21 AM
To: Elizabeth L Hernandez/HOU/ECT@ECT
cc:
Subject: Re: Price disc. on deal 231760 for 04/00

This is a CES deal. I do not know who is confirming the pricing for the CES
deals. I would reccomend maybe getting with Chris Germany. Please let me know
if you need something else.

Elizabeth L Hernandez
05/22/2000 09:16 AM
To: Robert Allwein/HOU/ECT@ECT
cc:
Subject: Price disc. on deal 231760 for 04/00

Who is the trader for deal 231760?  As you can see from Lisa's note we have a
price discrepancy.  Can you please help us out.

---------------------- Forwarded by Elizabeth L Hernandez/HOU/ECT on
05/22/2000 09:15 AM ---------------------------

Lisa Valderrama
05/21/2000 10:39 AM
To: Elizabeth L Hernandez/HOU/ECT@ECT
cc:
Subject: Price disc. on deal 231760 for 04/00

It looks like we have a price discrapency on deal 231760 for April
production.  Columbia Natural Resources has invoiced ENA  at $3.02 and we
have the deal priced at $2.14.  Could you please check with the trader and
confirm which price is correct.

Thanks
Lisa
3-7134


----- Forwarded by Sue Nord/NA/Enron on 05/31/2001 04:08 PM -----

	Brad Richter@ENRON COMMUNICATIONS
	05/31/2001 03:55 PM

		 To:
		 cc: (bcc: Sue Nord/NA/Enron)
		 Subject: Project Raven

To the due diligence teams of Project Raven--

As you may have already heard, EBS decided this week not to pursue continued
discussions with Raven.  I wanted to take the time to thank each of you for
the many hours you put into the transaction.  I firmly believe that we did
the most thorough due diligence possible given our time constraints and the
relative disarray of Raven's organization.  Each diligence team pitched in
with helpful suggestions and worked toward a common goal, and we should be
proud of the manner in which we arrived at our conclusions.  But as is the
rule in business, you win some and you lose some.  Regardless of the outcome,
I sincerely appreciate your efforts and hope that we can meet up again on the
next deal.  In the meantime, if you have any questions about the process or
would like to tie up loose ends please fell free to stop by.

Thanks again,

Brad Richter
EBS Corporate Development


We have received the following executed Master Agreement:

Type of Contract: ISDA Master Agreement ( Multicurrency-Cross Border)

Effective Date:  April 12, 2000

Enron Entity:  Enron North America Corp.

Counterparty:     Westpac Banking Corporation

Transactions Covered:   Approved for all products except:          pulp and
paper and weather

PLEASE NOTE:   The Counterparty is the Calculation Agent.   The Counterpary
has three (3) Local Business Days after the receipt of a Confirmation from
ENA to accept or dispute the Confirmation.


Brant:
Please call me about this.
Carol
----- Forwarded by Carol St Clair/HOU/ECT on 07/10/2000 06:36 PM -----

	Tanya Rohauer
	07/10/2000 02:48 PM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc: Brant Reves/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT
		 Subject: Re: Columbia assignment

My understanding is it stayed with Columbia and we have continued to transact
under it.  I do not know The New Power Company; Brant would probbaly be the
best person to review the credit and determine if we are OK with the
assignment.  Why are they sending us "notification" - don't they need to
obtain our consent?

Thanks,
Tanya

   Carol St Clair                07/10/2000 02:35 PM

To: Tanya Rohauer/HOU/ECT@ECT
cc:
Subject: Columbia assignment

Tanya:
When the Columbia purchase was done in January, did the 1/30/98 ISDA Master
between ENA and Columbia Energy Services Corporation stay with Columbia or
come over to us?  The reason that I am asking is that they have sent ENA a
letter notifying us of Columbia's transfer of its rights under such Master to
The New Power Company, so it seems as if they believe that that Master was
not part of our acquisition.  Who in credit needs to be aware of this if in
fact this Master will be assigned to New Power?
Carol


---------------------- Forwarded by Jenny Helton/HOU/ECT on 07/20/99 08:21 AM
---------------------------

	From:  Jeffrey T Hodge                           07/20/99 08:17 AM

To: Jenny Helton/HOU/ECT@ECT
cc:
Subject:

---------------------- Forwarded by Jeffrey T Hodge/HOU/ECT on 07/20/99 08:17
AM ---------------------------

Ozzie Pagan
07/19/99 11:56 AM
To: Jeffrey T Hodge/HOU/ECT@ECT
cc:
Subject:

here it is.
---------------------- Forwarded by Ozzie Pagan/HOU/ECT on 07/19/99 11:55 AM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Veronica_L_Birch@fpl.com                           07/19/99 11:11 AM

To: Ozzie Pagan/HOU/ECT
cc:
Subject:

---------------------- Forwarded by Veronica L Birch on 07/19/99 12:11 PM
---------------------------

Veronica L Birch
07/19/99 12:03 PM

To:   OPAGAN@ect.com
cc:
Subject:

Ozzie - Here's your copy.  Please call with any questions.  Veronica
(561-625-7616)

(See attached file: CONTRACT.doc)

 - CONTRACT.doc


Attached is PIRA's extended Daily Demand Report.

Please contact Morris Greenberg and Victoria Watkins for more information
regarding these reports at [mailto:morris@pira.com] and
[mailto:vwatkins@pira.com], respectively. For distribution requests, contact
John Graziano at [mailto:jgraziano@pira.com]. We can all be
reached at (212) 686-6808

.

 - ed041601.xls
 - ed041601.pdf


SK - I went ahead and approved this request.  This is to make your computer
faster. mm

You have received a new IS&S request for Steve Kean.  Please review the
request and make any necessary changes.  If you approve the access, please
click the Approve button at the top of the request form and EES Security will
receive notification.  You may click the link at the end of this message to
view the request document.


Hi Stuart,

Please remove me from your mailing list.

Thanks

 -----Original Message-----
From: 	Stuart Sheldrick/Enron@EUEnronXGate@ENRON [mailto:IMCEANOTES-Stuart+20Sheldrick_Enron+40EUEnronXGate+40ENRON@ENRON.com]
Sent:	Tuesday, September 25, 2001 11:56 AM
To:	Enron Europe CP Name Changes
Cc:	Hunter-Lindsay, Brian
Subject:	RE: RE : Name change to GCP record National Power PLC

National Power PLC (CPID 51043) has now changed its name to International Power PLC in GCP

Regards

Stuart

 -----Original Message-----
From: 	Sheldrick, Stuart
Sent:	21 September 2001 16:09
To:	Enron Europe CP Name Changes
Cc:	Hunter-Lindsay, Brian
Subject:	RE : Name change to GCP record National Power PLC

From Monday 23/09/01 Counterparty CPID 51043 National Power PLC will be changed to International Power PLC

This is due to a name change that took place on 02/10/00

Please call me if this causes any problems 34563

Regards

Stuart


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