----- Forwarded by Richard B Sanders/HOU/ECT on 11/17/2000 10:19 AM -----

	"Meringolo, Peter" <PMeringolo@brobeck.com>
	11/16/2000 03:27 PM

		 To: "'Richard.B.Sanders@enron.com'" <Richard.B.Sanders@enron.com>,
"'msmith1@enron.com'" <msmith1@enron.com>, "'Mary.Hain@enron.com'"
<Mary.Hain@enron.com>, "'David_Aamodt@pgn.com'" <David_Aamodt@pgn.com>,
"'Christian.Yoder@enron.com'" <Christian.Yoder@enron.com>, "'mday@gmssr.com'"
<mday@gmssr.com>, "Fergus, Gary S." <GFergus@brobeck.com>, "Stephen C. Hall
(E-mail)" <schall@stoel.com>
		 cc:
		 Subject: Draft letter to the CPUC

Please let either Gary or me know your thoughts and comments regarding the
below draft letter to the CPUC.

Thanks,

Peter

> PRIVILEGED AND CONFIDENTIAL
> ATTORNEY CLIENT COMMUNICATION
> ATTORNEY WORK PRODUCT
>
>
>
> Harvey Morris Esq.
> California Public Utilities Commission
> 505 Public Utilities Commission
> San Francisco, California   94102
>
>  Re:   I.00-08-002  Subpoenas Served on Enron Power Marketing, Inc.
> ("EPMI"), Enron Energy Services Operations Inc. and Enron Energy Services
> Inc. (collectively referred to as "EES"), Enron Energy Marketing
> Corporation ("EEMC"), and Portland General Electric Corporation ("Portland
> General")(collectively sometimes referred to as the "Enron Entities")
>
> Harvey,
>
>  I am writing in response to the various voicemail exchanges and
> phone calls between Michael Day, on behalf of the Enron Entities, and
> yourself during the past few weeks.  Here is the current status as we
> understand it.  Based upon the agreements we reached between October 6,
> 2000 and October 18, 2000 (date of your confirming email) the Enron
> Entities have made the following document productions in response to the
> subpoenas served by California Public Utilities Commission (the
> "Commission"):
>
> * October 13, 2000  Bate Nos. Enron Entities 000001-000025 on behalf
> of all Enron Entities Responsive to Request Nos. 1-11, 20.
>
> * October 27, 2000 Bate Nos. P000001-002115 on behalf of Portland
> General Responsive to Request Nos. 12, 14, 16 and 18.
>
> * November 14, 2000 Bate No. Enron Entities 000026 (Diskette with
> EES/EEMC retail data) Responsive to Request Nos. 7 to 11, 13, 15 to 17,
> and 19.
>
> * November 15, 2000 Bate No. P002116-002117 (Diskettes with Portland
> General Data, which include approximate 355,000 wholesale transactions)
> Responsive to Request Nos. 7 to 11, 13 to 17, and 19.
>
> We believe with these productions, we have complied with the October
> 6-18th agreement with respect to Portland General and EES/EEMC.  As you
> know, these productions were all made reserving the Enron Entities rights
> to object or challenge the subpoenas and reserving any claims, defenses,
> objections, jurisdictional or otherwise, or other responses.
>
>  We originally had hoped to have all of the Transactional Data for
> EPMI, as defined in our October 6th email, available for production by
> October 27th.  However, we were also mindful of your expressed expectation
> that any data provided be useful and reliable.  The collection of data you
> requested in the subpoenas is neither kept electronically in the same
> location nor organized as you requested it.  In fact during our review of
> some of the data we found significant errors that called into question the
> methodology by which the data was extracted from existing information.
> When it became apparent that we could not accurately estimate how long it
> would take to get reliable data given the volume of transactions involved,
> we informed you of the problem.  We now understand that if we cannot give
> you a firm date when the balance of the Transactional Data will be
> available, the Commission believes it will have no choice but to seek to
> compel production before the Federal Regulatory Energy Commission
> ("FERC").  We understand the pressure that you must be under to get data
> immediately, but we cannot, at this time, give you another date in the
> immediate future by which we are certain that we will be able to produce
> accurate data.
>
>  Moreover, during the iterim between October 18th and today, a number
> of significant events have occurred that we believe bear on the subpoenas
> served on the Enron entities.  First, we understand that many other
> parties who were served with the same subpoenas have not provided the
> detailed information requested and have objected on a variety of very
> sound legal grounds.  Second, the Commission itself has, without a hearing
> on the motion, unilaterally revised the proposed protective order that is
> supposed to govern these productions and summarily denied other changes
> sought by other parties served.  Third, the Commission has filed its
> motion before FERC seeking an order compelling the production of the data
> from those other parties that have objected and seeking an expedited
> hearing and production schedule.  We note that the reasons stated in the
> motion before FERC as the basis for the production are materially
> different than the reasons originally stated in the ex parte application
> to the Commission's own Administrative Law Judge who issued the subpoenas.
> Finally, FERC itself has completed its investigation and has issued a
> tentative order as of November 1, 2000.
>
>  Originally, the Enron Entities had been prepared to accept "most
> favored nation" treatment with respect to protective orders and requests
> by others to limit the scope of the subpoenas and produce information that
> was available.  However, given both the Commission's stated urgent need
> for an immediate answer that EPMI cannot in good faith give despite
> substantial effort (date for production of reliable and accurate
> Transaction Data) and the uncertainty created by the above described
> intervening events, EPMI believes it has no choice but to serve its formal
> objections and responses to the subpoenas and await the Commission's
> threatened motion to compel before FERC.
>
>  We also understand from our discussions with you that the Commission
> has created various lists or categories for the entities that have been
> served with subpoenas.  We understand that there is a list for those
> entities that have been cooperating, a list for those who have been
> delaying and a list for those who have been objecting and exercising their
> rights to challenge the subpoenas.  We understand that the Commission
> intends to punish, by whatever means it has available, those entities that
> object and exercise their rights to challenge the subpoenas.  We deplore
> these tactics, but despite all of the efforts to cooperate described
> above, we understand that EPMI may in fact be moved from the cooperating
> list to the group to be punished for exercising its rights.
>
>  If you have and questions or comments, please do not hesitate to
> contact me.
>
>         Sincerely,
>
>
>
>         Gary S.
> Fergus

=======================================================
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I am resending the original message that I sent to Kevin regarding Rick
Causey's memo.  Please refer him to the second point in my e:mail, as well as
the attachment.  Thanks.
---------------------- Forwarded by Sally Beck/HOU/ECT on 01/04/2000 03:22 PM
---------------------------

	Enron North America Corp.

	From:  Sally Beck                           12/17/99 07:03 PM

To: Kevin P Hannon/HOU/ECT@ECT
cc:
Subject: Various Discussion Points

I will commit to writing the three items that I had hoped to discuss with you
today.  Feel free to get back with me via voice mail (x35926).  If you would
prefer to discuss any of these with me, you can reach me at home from
December 20-23 while I am on vacation.  My home number is 281-370-8568.  I
will be back at work for the week between Christmas and New Years.

1)  January 1:  Do you want me to call you that day after we have tested all
systems to give you a status update?  I can leave a voice mail for you at
your Enron number.  Or if you prefer, I would be happy to call you if you
will provide me with a number where you will be.  Cliff Baxter and several
key commercial personnel have asked that I call them after we have completed
our testing of all systems that support each commodity and product that we
trade in North America.  I will make these phone calls myself, and will
naturally treat all phone numbers that I have been given as confidential.
Please let me know your preference for notification.

2)  Definition of a global focus for trading operations:  Attached is a draft
memo that Rick Causey proposes to send.  This memo describes a coordination
role that I will play on certain operational policies and procedures that
should be coordinated in all trading locations.  Please let me and/or Rick
know if you have any comments or suggestions.  I had hoped to briefly discuss
this with you in person, as I would want you to understand two points:  (1)
This role will not prevent me from continuing a very strong focus on the
needs of ENA.  I have worked very hard to assure a level of accuracy, control
and service in ENA operations.  Through that hard work, I believe that I have
your confidence in my ability to deliver results.  I  would do nothing to
jeopardize that.  (2)  There is a need for this coordination function, and
some one will play that role.  If I play that role, I can be in the best
position to influence outcomes with ENA's needs in mind.

3)   Gas Logistics:  I will talk with Whalley about my thoughts on this, but
I had wanted to make you aware that Jeff Shankman believes that he wants
logistics to report to him.  His stated reason to me is that he wants it to
"look like power".  I had wanted to discuss with you your thoughts on what
the criteria should be on which we make that decision.  I will propose to
Greg and Jeff that gas logistics should be located in direct proximity to the
regional traders in order to facilitate the flow of commercially viable
information about the pipes and capacity.  ( We have that now for the Central
and West desks, and should be able to make this happen as the 32nd floor is
built out for gas.)  I believe, however, that gas logistics should now report
to Brent Price, my business controller over gas for the East, Central and
West regions.  Brent would then have operations truly front to back (risk,
confirmations, scheduling and invoicing) and he sits on 31 and works very
closely with Jeff.   Also, Brent would be in the best position to ensure that
the logistics team meets requirements for timeliness and accuracy of
volumetric information so that we can achieve our target headcount reduction
in gas operations of 52 by year end 2000.  Without a continuing focus in
logistics on the downstream information needs, I will be concerned about our
ability to deliver our projected cost savings.  I also believe that Brent
will be in the best position to ensure minimal flash to actual variances.
While Greg and Jeff were certainly both with ECT in 1996 when we had an
earnings hit as a result of flash to actual variances, I am not sure that
either one was involved closely enough to appreciate the need for a strong
front to back focus to prevent these problems, and that includes holding
logistics accountable for their part in this.

I will let you know the outcome of my conversations with Greg and Jeff on
this issue.


It is with sadness and regret that we announce that Cliff Baxter is resigning
as an employee of Enron.  We are happy, though, that Cliff,s primary reason
for resigning is to spend more time with his family.

Cliff is a unique talent.  His creativity, intelligence, sense of humor, and
straightforward manner have been assets to the company throughout his
career.  He will be missed.

Cliff joined Enron in 1991 and was a key member of the team that built Enron,
s wholesale business.  Before becoming Vice Chairman of Enron, Cliff served
in a variety of positions in Enron,s wholesale businesses, culminating in his
appointment as Chairman and Chief Executive Officer of Enron North America in
1999.

We have asked Cliff, and he has agreed, to continue in a consulting role for
the company while concluding negotiations on a number of key asset
dispositions.

Please join us in thanking Cliff for his service to the company and in
wishing him the very best.


Please see attached memo from Beth Tilney and Cindy Olson.


well since we cant i think im going to take off, have a good weekend


Start Date: 4/12/01; HourAhead hour: 11;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041211.txt


Enron is forming a new organization - - the Enron Xcelerator - - to drive the
formation and development of new businesses at Enron.  Enron's unique ability
to start and develop new businesses has driven most of our growth over the
years.  Lou L. Pai, currently Chairman and CEO of Enron Energy Services, will
lead the Xcelerator.  Over his years at Enron, Lou has been key to the
creation and rapid growth of our wholesale gas, wholesale power and energy
service businesses.  The existing business units will continue their
development of core businesses, while the Xcelerator will be responsible for
developing new business opportunities that are natural extensions of Enron's
business model and core skills, but not currently under development elsewhere
in Enron.

Dave Delainey, currently President and CEO of Enron Americas, will become
Chairman and CEO of Enron Energy Services.  Dave brings a wealth of
experience and accomplishment from Enron Wholesale Services' businesses where
he led the growth of our Canadian business and our North American origination
activity and, most recently, had a great year in Enron Americas.

Dave is forming an Office of the Chairman in EES.  Joining Dave in the Office
of the Chairman are Dan Leff, President of EES, Global Energy Services, and
Marty Sunde, President of EES, Global Marketing and Services.  Dan and Marty
have been instrumental in the development and execution of the successful EES
business model.  Also joining the Office of the Chairman of EES is Janet
Dietrich as Chief Operating Officer.  Janet, currently is Managing Director
in Enron Americas, where she has been successful in many of Enron Wholesale's
core businesses, including gas trading, risk management and structural
origination.  Tom White will continue as Vice Chairman of EES and will focus
on the development and expansion of EES' customer relationships.  Lou, Tom,
Dan, Marty and the entire EES organization have developed a great business
model with great growth prospects.  EES has become an essential part of
Enron's market valuation and growth story.  This new leadership structure
will enable EES to continue on its path of sustained growth and increasing
profitability.

John Lavorato will succeed Dave as President and CEO of Enron Americas.  John
has been an essential part of Enron's energy trading success over the years
and is a key part of Enron Wholesale Services' continuing success story.
Joining John is Louise Kitchen, currently President and CEO of Enron
NetWorks.  Louise, who accelerated Enron's outstanding growth with the
deployment of EnronOnline, will take over as Chief Operating Officer of Enron
Americas.

Philippe Bibi, currently Chief Operating Officer of Enron NetWorks will take
over as President and CEO of Enron NetWorks.  Under Philippe's leadership,
Enron has become a technology leader and the leading e-commerce company.
Joining Philippe as Chief Operating Officer is Greg Piper, currently Managing
Director of Enron NetWorks.  Greg currently leads Enron NetWork's origination
activity and was responsible for the creation and deployment of ClickPaper,
Enron's successful online pulp and paper marketplace.

Please join us in congratulating all of these individuals on their
achievements and their new responsibilities.


_______________________________________________________________

This message and any attachments are intended for the individual or entity
named above.  If you are not the intended recipient, please do not read,
copy, use or disclose this communication to others; also please notify the
sender by replying to this message, and then delete it from your system.
Thank you.
_______________________________________________________________

Kay: At Gregg's request, I forwarded the comments to Jerry Fox, who is
handling this for Peoples. I spoke briefly with Jerry. He said he had
reviewed the comments and was in general agreement. He also indicated that
he needed more information to finalize the Petition. Although he hasn't yet
gotten back to me, I believe he is reviewing this. I plan to put in another
call to him later today.


Martin,

Works for me.

Vince

Shirley, Please, put on my schedule.

From: Martin Lin on 04/26/2001 11:05 AM
To: Vince J Kaminski/HOU/ECT@ECT, Vasant Shanbhogue/Enron@EnronXGate, Sandeep
Kohli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sevil Yaman/Corp/Enron@Enron
cc:
Subject: carpool to Austin for Short Course

The five of us will be riding together for the May 2 short course.  Perhaps
leaving at 9am would be best to give sufficient time for lunch before the
course.  Would an estimated departure from Enron at that time be suitable to
everybody?

Martin


BUSINESS HIGHLIGHTS

Coal Trading
The liquidity in trading of the Standard European Coal Agreement has
increased significantly over the last 6 weeks.  Many counterparties that
previously opted to stay on the sidelines finally chose to join the game.
Since the contract's inception at the beginning of the year, Enron has traded
a total of 5.3 million tons against the SECA contract, of which 3.8 million
tons has been traded via EnronOnline since July 2000.  We are 5.3 million
tons of a total traded market of 5.8 million tons.

Principal Investments
Tridium Inc., the leading provider of Internet-based automation
infrastructure solutions, announced the close of a $20 million round of
capital funding. The funds will be used to increase Tridium,s sales and
technical support offices in North America, expand its operations into Europe
and Asia, and enhance its technology and products. kRoad Ventures, L.P. and
Enron North America each contributed $10 million in venture capital.

Corporate Development
Allegheny Energy Supply Company, LLC, a wholly owned subsidiary of Allegheny
Energy, Inc., announced the signing of a definitive agreement under which
Allegheny Energy Supply will purchase three Enron natural gas-fired merchant
generating facilities. The acquisition is expected to close in the 2nd
quarter of 2001.

PERFORMANCE REVIEW

The deadline to provide feedback is Friday, November 17.  If you have been
selected to provide feedback on one of your fellow employees, please take the
time to fill out an evaluation online at www.pep.enron.com.

IN THE NEWS

"Enron Corp., already North America's biggest, buyer and seller of natural
gas and electric power is dead serious about its efforts to capture a big
slice of the $400 billion global trade in pulp, paper and lumber."
-Reuters News Service

2000 CHAIRMAN,S AWARD NOMINEES
Please join us in congratulating the ENA/EIM/EGM/ employees who have been
recognized as Chairman,s award nominees.

Congratulations to:

 Irma Alvarez  Alan Aronowitz  Rick Bergseiker  Carol Coats  Joya Davis
Rufino Durante
 Sue Foust  Julie Gomez  Barbara Gray  Jackie Griffith  John Harrison  Gerri
Irvine
 Kathy Benedict  Michael Kelley  Mike McConnell  Dave Nommensen Ina Norman
Juan Padron
 Veronica Parra  Michael Roberts  Rhonda Robinson Kevin Sweeney  Helen
Taylor  Stacey White

Extra kudos to BARBARA GRAY, who is a finalist for the 2000 Chairman,s
Award.  Barbara and ten other individuals are flying to San Antonio from
around the world to be honored at Enron,s annual Management Conference.  One
of these finalists will be recognized as the 2000 Chairman,s Award winner.

WELCOME
New Hires ENA/EIM/EGM
ENA ) Anil Chandy, Alejandra Chavez
EGM ) Marty Cates, JoAnne Underwood, Brad Miller

Transfers to ENA/EIM/EGM
ENA ) Mark Wadlington, Jennifer Blay-Smith, Georgian Landau, Kathryn Bussell,
John Coleman, Steven Gillespie, Clarissa Garcia, Ina Rangel, Farouk Lalji,
Eva Rainer, Chuchu Wang, Smith Day
EGM ) Gloria Solis, Carmella Jones, Nancy Haralson

LEGAL STUFF
The information contained in this newsletter is confidential and proprietary
to Enron Corp. and its subsidiaries.  It is intended for internal use only
and should not be disclosed outside of Enron.


Several changes have been made to Stack Manager and the website. These changes are outlined below and will be visible by all as of Monday September 3, 2001.

Stack Manager Changes

Activate/Inactivate Stack - This functionality allows the trader to pull a product's prices from the website without suspending the product. If the Top of Stack limit order functionality is activated for a particular product this should be used to pull the stack prices from the website without pulling the entire product; therefore, if there are top of stack limit orders against the product they will remain visible and transactable on the website.

If a product's stack is inactivated the font for that product will be grayed out in stack manager. If the stack is active it will appear in black font.

To use this feature, select the product, right click and choose "Inactivate Stack". When you are ready to reactivate your prices, select the same product, right click again and choose "Activate Stack". There are also icons on the tool bar at the top of your screen which will Activate/Inactivate the stack of the highlighted product. See screen shot below for the icons.

Changes to Product Properties - Currently when modifications are made to certain properties within the product properties screen, the product will be suspended and pulled from the website. Now instead of being suspended, the product's stack will become inactive. Once the changes have been made and saved to the properties of a product simply click the Activate Stack icon as discussed above.

Website Change

Restrictions on Top of Stack orders - If Top of Stack limit orders are allowed on a product, but the trader is not showing both a bid and offer, limit orders will not be able to be placed on that product.

If you have any questions please call me at 31787. Thanks.

Savita

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Official Philips / U.S. Soccer Stadium Chant to Debut on October 7 at World Cup Qualifier
CHICAGO (Thursday, October 4, 2001) - U.S. Soccer fans will come together in one voice to show their national pride and rally the U.S. Men's National Soccer Team in their important World Cup qualifier against Jamaica at Foxboro Stadium on Oct. 7. As they wave their flags and support the red, white and blue, U.S. Soccer fans will have - for the first time ever - an official chant to unite them in pride and support for their team. As part of a new American tradition, the official Philips / U.S. Soccer Stadium Chant will be debuted by the fans and revealed to the nation during the crucial qualifying match just outside Boston.
Continue: http://www.ussoccer.com/news/fullstory.sps?iNewsid=2473

  ---
You are currently subscribed to ussoccerfan_tx as: jarnold@enron.com.
To modify your registration, please visit http://www.ussoccerfan.com/
For more information on U.S. Soccer, please visit http://www.ussoccer.com/


EFF_DT PORTFOLIO_ID DOWN95
12/6/00  MANAGEMENT-CRD 0
12/6/00  MANAGEMENT-GAS 4,433,359.
12/6/00  MANAGEMENT-PWR 353,366.
12/6/00  AGG-MANAGEMENT 4,638,876.


Sheila:  Looks like Rafael never read the email that Susan Flynn sent to
Nancy a few days ago.  I don't know where this stands.  Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 06/23/2000 10:37 AM -----

	Susan Flynn
	06/21/2000 08:33 AM

		 To: Nancy Muchmore/NA/Enron@ENRON
		 cc: Rafael Rangel/NA/Enron@Enron, Robert H George/SA/Enron@Enron, Sara
Shackleton/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron
		 Subject: Enron Inversiones de Energia S.C.A.

 The email that you sent to me below does not pertain to to the referenced
entity.  Did you send me this email in error?  In order to open to the
brokerage account for Rafael Rangel, we need corporate resolutions and an
authorized traders list for the referenced entity.    On June 1, 2200, I
emailed our form of corp. resolutions and authorized traders list to you and
Rafael.  I will send the email to you again.   Please advise me of when I
should expect to receive these documents so that we can open the acccount.
Please call me if you have any questions.

Susan D. Flynn
Enron North America Corp.
1400 Smith Street, EB3806
Houston, Texas  77002
Phone:  713-853-0975
Fax:  713-646-3490

	Nancy Muchmore@ENRON
	06/20/2000 06:16 PM

		 To: susan.flynn@enron.com
		 cc:
		 Subject: Certificate


Thanks Lindy.  Have a good time in sunny California!  K.

 -----Original Message-----
From: 	Donoho, Lindy
Sent:	Monday, August 06, 2001 9:04 AM
To:	Watson, Kimberly
Subject:	FW: TEAM BUILDER

Well, now my curiosity is peaked.  I'm sorry I will miss it.  We did just get confirmation this morning on our SoCal meeting.

HAVE FUN!
Lindy

 -----Original Message-----
From: 	Divelbiss, Sasha
Sent:	Monday, August 06, 2001 8:44 AM
To:	Gottsponer, Morgan; Watson, Kimberly; Keller, John R.; Faucheaux, Eric; Abdmoulaie, Mansoor; Matthews, Ronald; Ramsaran, Gale; Alters, Dennis; Hughes, Matt; Asante, Ben; Schoolcraft, Darrell; Jolly, Rich; Roensch, David; Lokay, Michelle; Lindberg, Lorraine; Donoho, Lindy; Smith, Buzz; Lohman, TK; Geaccone, Tracy
Cc:	Sumlin, Roger; Fagan, Fran; Dodd, Wilford
Subject:	TEAM BUILDER

This is just a Reminder!!!!
	August 8th - Four Seasons Hotel Downtown
				      1300 Lamar Street
			(we will be located in the Conroe Room)

 << OLE Object: Microsoft ClipArt Gallery >> Breakfast will be served at 7:15 AM and we will begin promptly at 8:00AM.  Once again we encourage you to dress casually, but keep in mind the Hotel Room may be Cold!!!  Maps to the Secret Social will be handed out following the afternoon brainstorming event!!!
		We look forward to seeing YOU there!!!


I will be at the dinner tonight.

DG    3-9573


The Pre-Bid Meeting has been moved to 3:00 on Tues, 11/21 ... it's still in
EB30c1 though.

Laura


Bush Adviser Rove Owns Stock in Major U.S. Firms
The Wall Street Journal, 06/04/01

Saudi Arabia Sets Pacts With 9 Oil Firms
The Wall Street Journal, 06/04/01

Saudi Arabia in Pacts With Nine Global Oil Firms Energy: Deals to develop
natural gas fields and other projects, worth at least $25 billion, are first
major foreign funding in sector since 1975.
Los Angeles Times, 06/04/01

Enron is my spiritual teacher
The San Francisco Chronicle, 06/04/01

Gloom today, glut tomorrow
The San Francisco Chronicle, 06/04/01

INDIA: Rating firms may be judging India harshly-analysts.
Reuters English News Service, 06/04/01

INDIA: India rupee ends off lows, fwds close higher.
Reuters English News Service. 06/04/01

UK: Spectron trades UK's first post-NETA spark spread.
Reuters English News Service, 06/04/01

INDIA: Enron India lenders meet in Singapore on Tuesday.
Reuters English News Service, 06/04/01

INDIA: UPDATE 1-India's Prabhu says power reforms enter new phase.
Reuters English News Service, 06/04/01

Nigerian president slams US energy firm Enron for "poor performance"
BBC Monitoring, 06/04/01

India: India and Bush Administration: Beyond assumptions
Business Line (The Hindu), 06/04/01

Enron's Indian Creditors Seek to Salvage Dabhol Project
Bloomberg, 06/04/01

Enron Japan's Hirl on Power Deregulation: Commodity Comment
Bloomberg, 06/04/01

Bush Adviser Rove Owns Stock in Major U.S. Firms
By Jim VandeHei
Staff Reporter of The Wall Street Journal

06/04/2001
The Wall Street Journal
A4
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -- President Bush's chief political strategist owns hundreds of
thousands of dollars worth of stock in companies potentially affected by the
president's top legislative priorities, newly released federal records show.
Karl Rove, one of the president's most trusted advisers on almost every major
legislative initiative, owns between $100,000 and $250,000 of stock in Enron
Corp., Pfizer Inc., General Electric Co., Boeing Co. and Johnson & Johnson,
among other holdings. (Federal law requires public officials to report their
assets, income and debts in broad ranges only). All of these companies could
be affected by one or more of the policies or legislative initiatives on
which the president consults Mr. Rove: tax cuts, increased defense spending,
an industry-oriented energy policy and health-care reform.
Mr. Rove said yesterday that he has been waiting for several months for
approval from the Office of Government Ethics to sell all of his stock
holdings and roll the proceeds into a diversified account without having to
pay capital-gains taxes, as permitted by federal law. In the meantime, "I
have had to avoid being involved in matters that specifically and materially
affect my specific holdings," Mr. Rove said.
Mr. Rove said he filed his financial disclosure reports Dec. 30 and was later
informed by the Office of Government Ethics that he should sell all of his
stock holdings to avoid even the appearance of a conflict of interest.
But the government ethics office, which couldn't be reached for comment
yesterday, has yet to officially grant Mr. Rove a certificate of divestiture,
which would allow him to roll his proceeds into diversified accounts,
according to White House spokeswoman Anne Womack. It appears that Mr. Rove
has lost tens of thousands of dollars as a result of the delay because most
of his stocks have lost value since the beginning of the year.
Mr. Rove insisted that he has been careful to avoid any discussions that
directly affect companies he is invested in, as federal conflict-of-interest
laws require. But that can't be easy for Mr. Rove, widely regarded as one of
the most powerful and influential figures in the White House. Mr. Rove serves
as the president's top political adviser and runs the administration's
long-term strategy team. He is also the president's top liaison to outside
groups, including corporations.
"He's involved in virtually every decision that is made here," says a White
House aide. It is unclear how many times, if ever, Mr. Rove recused himself
from discussion inside the White House.
President Bush, already under fire from Democrats for his administration's
close ties to industry, is likely to draw more scrutiny as a result of the
new disclosures of financial links between top White House officials and
major U.S. corporations, especially energy firms.
The White House disclosed the personal finances of Mr. Rove and several other
top administration officials at the behest of the media. It appears that as a
result of an administrative backlog, Mr. Rove is the only member of the
senior staff who hasn't been given the green light to sell his stock,
according to a White House aide.
The reports show that Mr. Rove was one of several White House officials with
a financial connection, past or present, with Enron and other energy
companies. Larry Lindsey, the president's top economic adviser who helped
draft the energy plan, received $50,000 from Enron in 2000 for consulting
work he did for the company, the documents show.
Lewis Libby, chief of staff to Vice President Dick Cheney, who was chairman
of the White House task force that wrote the energy plan, recently sold tens
of thousands of dollars of stock in Enron and other energy companies,
including Texaco Inc., Exxon Mobil Corp. and Chesapeake Energy Corp. It is
unclear when the transaction went through.
Clay Johnson, director of presidential personnel, reported holding between
$100,000 and $250,000 in El Paso Energy Partners LP. And National Security
Adviser Condoleezza Rice had $250,000 to $500,000 worth of Chevron Corp.
stock and was paid $60,000 last year for her work as a director at the
company. Mr. Rove disclosed smaller holdings in BP PLC and Royal Dutch/Shell
Group.

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

International
Saudi Arabia Sets Pacts With 9 Oil Firms

06/04/2001
The Wall Street Journal
A17
(Copyright (c) 2001, Dow Jones & Company, Inc.)

JEDDAH, Saudi Arabia (AP) -- Saudi Arabia signed agreements with nine oil
companies yesterday, a move that marks the first major foreign investment in
its energy sector since the industry was nationalized in the 1970s.
The expected deal, valued at $25 billion at least, involves the development
of three natural-gas fields in the kingdom, as well as a number of related
power plants, transmission pipelines and water-desalinization projects.
Exxon Mobil Corp., the world's largest publicly traded oil company, is the
lead manager on two of the projects, including the $15 billion Ghawar Core
Venture 1 project. It also will lead the Red Sea Coast Core Venture 2
project. Royal Dutch/Shell Group was chosen to lead the Shaybah Core Venture
3 project.
The Western companies will help Saudi Arabia convert its utilities from oil
burning to natural gas, which would free up more of the kingdom's crude oil
for export.
The other companies selected were BP PLC, TotalFinaElf SA, Conoco Inc.,
Phillips Petroleum Co., Occidental Petroleum Corp., Enron Corp. and Marathon
Oil Canada Inc.
Saudi Arabia's state-owned energy company, Saudi Aramco, will be an equity
owner in the projects.
Saudi Arabia nationalized its oil fields in 1975 after tension caused by the
Arab oil embargo against the West that began two years earlier, and it closed
its energy exploration and production sectors to foreign investment.
Although locked out of the production of energy, Exxon Mobil has $5 billion
in refining and petrochemical joint ventures in the country, and it said it
is also the largest foreign purchaser of crude oil and other hydrocarbons
from Saudi Aramco.

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

Business; Financial Desk
Saudi Arabia in Pacts With Nine Global Oil Firms Energy: Deals to develop
natural gas fields and other projects, worth at least $25 billion, are first
major foreign funding in sector since 1975.
From Associated Press

06/04/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company

JIDDAH, Saudi Arabia -- Saudi Arabia signed agreements with nine
international oil companies Sunday, a move that marks the first major foreign
investment in its energy sector since nationalizing the industry in 1975.
The deals, worth a total of $25 billion or more, involve the development of
three natural gas fields in the kingdom and a number of related power plants,
transmission pipelines and water desalinization projects.
The Western companies will help Saudi Arabia convert its utilities from
oil-burning to natural gas, which would free up more of the kingdom's crude
oil for export.
Exxon Mobil Corp., the world's largest publicly traded oil company, is the
lead manager on two of the projects, including the $12-billion-to-$16-billion
Ghawar Core Venture 1 project. It also will lead a second core project. Royal
Dutch/Shell was chosen to lead a third project. The last two projects have a
value of $7 billion to $10 billion each, Prince Saud al Faisal told
reporters.
The other companies selected were BP of Britain, TotalFinaElf of France,
Conoco Inc. of Houston, Phillips Petroleum Co. of Bartlesville, Okla.,
Occidental Petroleum Corp. of Los Angeles, Enron Corp. of Houston and
Marathon Oil Co. of Houston.
Harry Longwell, director and senior vice president at Exxon Mobil, said the
financial terms of the deal are still being discussed. But he said his
company is ready to begin the work when the final contracts are signed.
"The Saudis' expectations are extremely aggressive," Longwell said. "It's a
very tight schedule and in recognition of that, the ability to get this done
is one of the key reasons we were chosen to lead two of these ventures. We
already have a senior management team in place and are ready to go to work
immediately."
Saudi Oil Minister Ali Ibrahim Naimi said the companies are expected to
profit on returns from the exploration and development of gas fields with
more than 15% of the investment cost.
Saudi Arabia's state-owned energy company, Saudi Aramco, will be an equity
owner in the projects.
Saud said if the companies discover oil, they will be compensated and the
fields will be repossessed by Saudi Arabia.
Saudi Arabia nationalized its oil fields in 1975 and closed its energy
exploration and production sectors to foreign investment.
Although locked out of the production of energy, Irving, Texas-based Exxon
Mobil has $5 billion in refining and petrochemical joint ventures in the
country and is the largest foreign purchaser of crude oil and other
hydrocarbons from Saudi Aramco.

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

DAILY DATEBOOK
JON CARROLL
Enron is my spiritual teacher
Jon Carroll

06/04/2001
The San Francisco Chronicle
FINAL
E.10
(Copyright 2001)

THE BUDDHA SAYS that we take wisdom where we find it. Perhaps the Buddha does
not say that, but it's not a bad idea anyway. The Buddha would have said it,
maybe, had he not been saying the other things.
Our enemies can teach us lessons. Our adversaries can make us stronger. They
can be consumed with greed and contempt, their very breath can be toxic, and
yet their actions can open upward-flowing paths.
Take Enron, the energy company, or Chevron, another energy company, or El
Paso Natural Gas, yet another energy company. These organizations are the
minions of Satan. They pillage and they profit. They are in the ascendant.
Their enemies fall before them like cordwood. Ordinary citizens cower and
meekly hand over tribute.
And yet we thank them. We send our investigators after them and we pray that
their executives land in jail, but we thank them. They have shown us the
nature of our enslavement. They have defined the nature of our sloth.
We have believed the Big Lie. We have believed in the free lunch. We have
trusted those who would pander to us. We have eaten energy in great dripping
gobs. Did we know it was not infinitely renewable? Oh yes. Did we understand
that energy companies could create "shortages" whenever they wanted merely by
closing plants for "maintenance"? You bet we did. And did we confuse the
energy companies with charitable organizations and/or alchemists able to
repeal the laws of nature? We did not.
But it was more convenient to forget those things, and so we did. We have
busy lives. We must do the things we must do. The infrastructure is
everywhere crumbling, and we are patching it up ourselves. We are paying
bureaucrats with taxes, but the bureaucrats are inadequate, so now the spirit
of volunteerism is much praised.
Volunteers are people who do jobs that other people are being paid to do but
don't.
AND SOMEHOW, EVEN in a society as relentlessly materialistic as this one, we
forgot about our own checking accounts. Already seduced by the idea that
credit card debt is good clean fun, we decided to waste a lot of money using
energy we didn't need.
I'm not talking about using a washing machine instead of going down to the
river and beating your clothes with small stones -- I'm talking about washing
machines with quarter-full loads and settings far too powerful for the task
at hand. Right? Lights burning in unoccupied rooms. Appliances plugged in but
never used.
We pay for it. We send our wonderful money straight to the largest villains
in American commerce because we are too stupid to do anything else. You
wonder why they have contempt for us. You wonder why Dick Cheney believes he
can fool all of the people all of the time. Because he has.
Look: Last week the secretary of commerce suggested means-testing Social
Security -- that is, means-testing a pension plan. You gave us the money, we
kept it for 40 years, now -- prove that you need it!
Why did he suggest that? Because he can! Why did PG&E demand additional
compensation for its executives, who are moral dimbulbs and social criminals
under any fair definition? Because they can get away with it! They will get
away with it! You watch!
I AM NOT saying that we have no one to blame but ourselves. There are active
villains, and there are people who allow villainy to occur. Everyone in a
corrupt system is corrupt. The fools are the ones who don't end up with any
extra money.
We are the fools. If we understand our foolishness, we begin to be wise. We
send lovely bread-and-butter notes to Enron -- once we were blind, but now we
see. And we await developments, or create them.
--------------------------------------------------------
It would be foolish to mention SUVs. When the brain is ready, the ear will
hear.

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

EDITORIAL
WASHINGTON INSIGHT
Gloom today, glut tomorrow
Carolyn Lochhead

06/04/2001
The San Francisco Chronicle
FINAL
A.19
(Copyright 2001)

WHAT GOES UP usually comes down. And few industries are more prone to boom
and bust than energy.
Imagine the news stories a few years from now: "Crisis hangover -- energy
stocks sink as prices plunge; But California consumers still stuck with high
bills."
"The energy industry is suffering its worst downturn since the supply glut of
the 1990s, as dozens of big new power plants come on line, and the
just-completed Alaskan gas pipeline sends natural gas prices to their lowest
levels in six years.
"The one bright spot for Texas generators is California, where consumers are
locked into long-term contracts for wholesale electricity that the state
signed at the peak of its blackouts in the summer of 2001.
"Sacramento lawmakers have appealed to President Daschle to help get the
state off the hook, arguing that California will never claw its way out of
its economic slump if businesses continue to flee to states where energy is
cheap.
"But top Enron lobbyist Gray Davis, a former governor of California, warned
Daschle that suppliers would have little choice but to go to court to enforce
the contracts the state signed."
Washington and Sacramento are agog with the energy crisis and bursting at the
seams with plans to fix it. But the one thing no one - - even
environmentalists -- suggests is letting high energy prices discourage energy
consumption or encourage new supplies.
"To economists, letting the price rise is the solution," said Paul Portney,
president of Resources for the Future, a Washington think tank. "To elected
representatives, having the price go up is the problem."
Political memories tend to be selective and short. But it was the energy glut
of the 1990s that contributed to California's blackouts, $3 gasoline and
$400-a-month heating bills. Likewise, high prices are now laying the seeds of
their own destruction.
As a story in the New York Times noted, an energy investment boom "promises a
cyclical increase in supplies that is expected to stabilize or reduce prices
in coming months, many industry executives and private analysts say."
Through much of the 1990s, there was a glut of energy. Fuel of all kinds was
really cheap.
How cheap? Adjusted for inflation, as cheap as in 1949, economists calculate.
Energy is the oxygen of the economy, and rock-bottom prices contributed to
the long economic boom. But low prices also caused energy production to slump
and consumption to soar.
People ditched their economy cars for SUVs. Houses got bigger, ceilings got
higher and kitchens sprouted industrial stoves with enough BTUs to melt
aluminum. Stores, offices and homes turned into summertime refrigerators.
Low prices discouraged energy development.
"Oil was so cheap for so long, that people were selling their refineries,"
Portney said. "You had virtually no exploration for new natural gas when
prices were at $2 a BTU."
As demand soared and supply fell, prices rose. Profits have grown so robust
that green fuels, such as biomass and wind, are becoming economically viable.
The oil industry is booming. Refineries are expanding. The long-delayed
construction of a natural gas pipeline from Alaska now looks likely. So many
power plants are under construction that the market may be flooded with as
much as 200,000 new megawatts by 2004.
Investments in energy efficiency -- from new-age superconducting transmission
wires to better light bulbs -- are suddenly looking attractive for the first
time in decades.
"High prices will dampen demand, high prices will encourage supply, and will
encourage people to make better use of what they've got," said Robert Ebel,
director of energy for the Center for Strategic and International Studies.
"So we're starting on the down slope. We're not very far down. When prices
start to decline, I can't say how far they will go. But they will decline,
because that's just the law of supply and demand. Prices decline, demand
starts to creep up again, there's less incentive to add to supply, and here
we go again."

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

INDIA: Rating firms may be judging India harshly-analysts.
By Vidya Ranganathan

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - Analysts have reacted with surprise to last week's
decision of ratings agency Fitch to cut India's sovereign ratings outlook to
negative from stable, and say there are no grounds to downgrade the country.
Fitch, which rates India's foreign currency obligations at BB-plus, a notch
above Moody's Investors Service and Standard & Poor's, cited concerns about
fiscal policy, privatisation and deterioration in foreign investment climate.
However, economists speculated it could either be on account of Fitch
adjusting its ratings in line with other global agencies, or a fallout of
U.S. energy giant Enron Corp's threat to exit an Indian power venture over
payments problems.
Moody's and S&P said on Friday they have not revised ratings or outlook but
are disappointed with fiscal reform efforts.
Local currency and stock markets reacted nervously to the announcement, but
economists said most concerns were exaggerated.
"When the direction of reforms is positive and government flows are
improving, the outlook should not change," said Mohan Nagarajan, chief
economist at local rating agency CARE Ltd.
Even if the provocation for the rating review was the Enron episode, analysts
said the problems were specific to the power sector and will not affect the
robust foreign investment the country has been receiving.
"Enron was a bad deal, made on unreasonable terms in the first place and does
not reflect the ability of the government to pay its dues," said an economist
with a U.S.-based fund.
Some of the confusion arises from the various ratings assigned to India.
Moody's has retained a positive outlook on its Ba2 rating since late 1999,
while S&P has a stable outlook and a BB rating.
CONCERNS OVERSTATED
Analysts said none of the factors Fitch cited had deteriorated in the past
year, since it first rated India.
Fitch said India's fiscal-monetary mix was unfavorable, real interest rates
were high and there was the risk of a debt trap.
India marginally overshot its budgeted fiscal deficit in 2000/01
(April-March) to 5.2 percent of GDP, down from the previous year's 5.6
percent.
But laws to control government spending are awaiting parliament's approval,
there are incentives for disciplined state governments and a determined
effort at privatising state-run firms has begun.
Burgeoning fiscal deficits have persisted for a decade and public debt at 60
percent of GDP is high, but at six percent annual growth, India is one of the
fastest expanding economies in Asia.
"In terms of external liquidity, India is much stronger than its BB+ rating
while even its public debt to GDP ratio is lower than that of some Asian
nations," said P.K. Basu, chief economist for South East Asia at Credit
Suisse First Boston, Singapore.
Foreign investment has been pouring in - portfolio flows at $2.2 billion so
far in 2001 are at record levels and compare with $1.56 billion for the whole
of 2000 - and foreign exchange reserves are strong at $42.8 billion.
Interest rates and yields have also dropped, with the Reserve Bank of India
(RBI) adopting an aggressive easing stance this year to prop the slowing
economy, and inflation is benign.
"The hardest initial steps are being taken and there is still a lot of
inertia, but soon there will be a willing audience and reforms can progress
faster," CARE's Nagarajan said.
But critics said the changes were still very superficial and structural
reforms that would spur long-term growth and demand were lacking.
"What the rating agencies have emphasised is fiscal consolidation, which
means better revenue streams, efficient expenses, user charges for public
utilities...we promised these three years back and haven't moved very far on
those," said Saumitra Chaudhari, economist with local rating agency ICRA Ltd.
"We still do not have a securities bill, mature debt market and our banks
have not cleaned up,".

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

INDIA: India rupee ends off lows, fwds close higher.

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - The rupee ended unchanged on Monday, recovering
from the day's low after a large European bank sold dollars, dealers said.
It had slipped to a low of 47.04 per dollar in early deals on dollar
purchases by a jewellery importer.
The rupee ended at steady at d47.01/02 per dollar.
Dealers said there was no impact of Friday's comments from international
rating agencies which had raised concerns over continuity of foreign
investment and dragged shares lower.
The currency recovered from lows around 47.085 on Friday, reacting to
international rating agency Fitch's revision in the outlook for India's
ratings on sovereign debt to negative from stable, citing worries about
fiscal policy, privatisation and deterioration in the country's foreign
investment climate.
Later, rating firms Moody's and Standard & Poor's (S&P) said they were
disappointed over the government's reform effort.
Moody's also raised a concern about India's Maharashtra state utility's
ongoing tussle with Houston-based Enron Corp and said: "the dispute indicates
that India's government may not be willing to live up to its contractual
obligations".
It added this would further deter foreign direct investment from coming into
the country.
The comments weighed on bond prices, which extended losses on Monday, and in
turn led to paying in dollar forwards.
"After a long gap, there was corporate paying interest in forwards today," a
dealer with a state-run bank said.
The six-month forward ended at an annualised 5.10 percent compared with
Friday's 4.95.
For a speed guide to Reuters treasury coverage, ((Bombay Treasury Desk, +91
22 265-9000 fax +91 22 264-1699, vidya.ranganathan@reuters.com)).

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

UK: Spectron trades UK's first post-NETA spark spread.

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, June 4 (Reuters) - Energy brokerage Spectron said late on Friday it
had traded the first brokered gas-electricity arbitrage, or "spark spread",
deal in the UK since the launch in March this year of new electricity trading
arrangements (NETA).
"Now that liquidity has returned to the electricity market post NETA, such
transactions are expected to become more common...", said Spectron in a
statement.
The deal was concluded between UK utility Powergen and U.S. energy group
Enron .
Spectron said the trade, covering winter 2002, was for 60 megawatts of
electricity at 21.42 pounds a megawatt hour and for 100,000 therms of gas at
24.85 pence a therm.
The winter period specified in the deal ran from October 1 to March 31.
For the electricity, one day was defined as 2300 hours to 2300 hours.
For the gas, one day was 0600 hours to 0600 hours.
The deal comes as the industry moves to create standard terms and conditions
for spark spreads.
Powergen is due to meet in mid-June with other traders, including Aquila
Energy , for talks aimed at agreeing standard terms.
"It is hoped that the market will soon establish standardised documentation
leading to a standardised product that will help promote liquidity in one or
more levels of efficiency," said Spectron.

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

INDIA: Enron India lenders meet in Singapore on Tuesday.
By Sriram Ramakrishnan

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - Lenders to Enron Corp's troubled Dabhol Power
Company begin a two-day meeting in Singapore on Tuesday to try and settle
differences over continued support to a controversial $2.9 billion power
project in India.
Representatives of some of the world's largest banks like Citibank , ABN AMRO
, and Bank of America, will be at the meeting. Indian lenders like the
Industrial Development Bank of India , State Bank of India and ICICI will
also participate.
Market analysts speculate that the meeting will attempt to forge a joint
stand on supporting the project which now produces 740 MW of power and is
slated to increase it to 2,184 MW shortly in its second phase.
But it comes against a backdrop of rising tension between Dabhol and the
Indian state utility, the Maharashtra State Electricity Board (MSEB), which
is the sole buyer of Dabhol's electricity.
Indian lenders, who have lent the bulk of the funds to the plant, want to
continue supporting the project.
But they are being opposed by offshore lenders who want to withdraw their
loans. Loans of around $638 million of the offshore lenders are covered by
guarantees provided by Indian institutions.
The Indian lenders, fearing for their profitability if the foreign banks pull
the plug, plan to oppose any such move.
But they have been forced on the backfoot by MSEB's decision last week to
stop buying power from Dabhol and terminate its 1995 contract with the
company under which it agreed to lift the entire output.
The MSEB has complained that Dabhol produces costly power while Dabhol has
blamed MSEB for defaulting on payments worth $48 million.
Last month, Dabhol issued a preliminary notice to terminate its contract to
sell power. It has also filed for arbitration in London. This provoked MSEB
to haul Dabhol before a local regulatory body, the Maharashtra State
Electricity Regulatory Commission (MERC), which issued a temporary order
staying the arbitration proceedings.
The dispute has already affected India's image among foreign investors.
Last week, global rating agency Moody's expressed concern over slippage in
the Indian government's reform programme and cited the Enron's dispute as an
example that the country may be losing credibility with foreign investors.
"The dispute indicates that India's government may not be willing to live up
to its contractual obligations. As a consequence, this would further deter
foreign direct investment from coming into the country," Moody's said.
India's federal Power Minister Suresh Prabhu tried to dispel those fears in
an interview with Reuters on Sunday.
"India is always in favour of making sure that international contracts are
respected," he said. "There is no need for concern." ($1 = 47 Indian rupees).

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

INDIA: UPDATE 1-India's Prabhu says power reforms enter new phase.
By Clarence Fernandez

06/04/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, June 4 (Reuters) - India's reforms of its sputtering power sector
have entered a new phase, with plans afoot to free up private supply,
overhaul debt-ridden state utilities and recraft tariffs, Power Minister
Suresh Prabhu told Reuters.
With investors' fears fanned by a squabble between U.S. energy giant Enron
Corp and a local utility, Prabhu said in an interview late on Sunday that
India is standing behind international contracts.
"Sanctity of contracts has to be kept," Prabhu said.
The row began late last year when the utility in western Maharashtra state
defaulted on payments of $48 million to Dabhol Power Company, 65 percent
owned by Enron. The 2,184 MW power project is India's largest foreign
investment, at $2.9 billion.
Prabhu has vowed to take Indian reforms in a new direction.
"Absolutely," he said in reply to a question whether India's reforms have
entered a different phase. The Power Ministry will now also focus on power
distribution, he added, besides its early preoccupation with generation
needs.
"In India unfortunately for the last 10 years...reforms policy was skewed in
favour of generation," he said. "We never really realised that distribution
is the more important part of the process."
Prabhu added, "We have now decided we will make enough structural changes in
distribution so that at the end of distribution enough investment is made."
CHARTERED ACCOUNTANT
A chartered accountant, Prabhu hails from the verdant regions of India's
western coastal strand, and chaired a co-operative bank that was one of the
country's largest, in terms of deposits, before his foray into politics.
An errant lock of hair straying across his forehead, Prabhu eschews the
Indian politician's traditional uniform of starched white handspun cotton for
the shirtsleeves and trousers preferred by the professionals who have entered
government, and whom local media call "technocrats".
Prabhu said India has decided to allow private producers to sell power direct
to consumers, lifting curbs that have hobbled the country's decade-old reform
effort.
He said the question of power affordability had spurred him to ask India's
states to permit third-party sales of power, which analysts have called a
stumbling-block for foreign investment.
"They cannot force a generator to sell power only to the SEBs, and that's a
major change we are trying to make," Prabhu said, referring to the states.
SEBs or state electricity boards are owned by the state governments, and
supply power to most of India.
India estimates that 100,000 MW of fresh capacity will have to be installed
over the next 12 years to meet its power needs. Most of the $200 billion in
funds that will be required will have to come from foreign private
investment.
But India's spotty reform record over the last decade has made investors
wary. Bureaucratic procedures, legal delays and political wrangling have held
up reform moves.
RATING REVISED TO NEGATIVE
Last week global rating agency Fitch revised India's sovereign rating outlook
to negative from stable, citing fiscal concerns, the slow pace of
privatisation and deterioration in the country's foreign investment climate.
Competing agency Moody's sees signs of slippage in the reforms, and Standard
& Poor's has expressed worries over India's budget deficit.
Prabhu said he wants to overhaul state power utilities by introducing
standard accounting policies, cutting transmission and distribution losses to
15 percent, and tackling crushing debt, thus helping to lure foreign
investment into the sector.
The poor financial health of the utilities, expected to run up combined
losses of about $6 billion in the 2001/02 fiscal year, has proved a hurdle in
efforts to draw private investment.
Prabhu said an expert panel examining ways to restructure SEB finances -
looking at technical, commercial and tariff issues - is expected to report
within a few weeks.
"For the first time we will be preparing commercial data which is
internationally accepted. We will be preparing technical data which is
internationally appreciable. And thirdly, we'll be creating an information
base which will be created by experts and then made available to the states,"
he said.
The utilities' transmission and distribution losses run to up to 25 percent
of the electricity they generate, compared to a figure of about eight percent
internationally, he said.
Prabhu wants to trim this to about 15 percent within two or three years.
"In the case of India, I am willing to accept a figure of 14 percent to 15
percent, because to bring it below that will be technically feasible but
commercially unviable," he added.
Other steps to tone up power generation include attempts to link the eastern
region with the rest of India, efforts to boost plant load factors through
modernisation of equipment, and to persuade people to use energy more
efficiently.
Prabhu said he is building political will to support these moves through a
programme to tell consumers why they can no longer get power cheap, or even
free, as many did in the past. ($1=47 Indian rupees).

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

Nigerian president slams US energy firm Enron for "poor performance"

06/04/2001
BBC Monitoring
Source: The Guardian web site, Lagos, in English 4 Jun 01/BBC Monitoring/(c)
BBC

Text of article by Francis Obinor entitled: "Obasanjo chides Enron on Lagos
power project"; published by Nigerian newspaper The Guardian web site on 4
June
For failing to live up to expectation of the Nigerian government and the
people as regard its role in the Independent Power Project (IPP) initiated by
the Lagos State government two years ago, Enron, the American firm got a hard
knock from President Olusegun Obasanjo at the weekend [2-3 June].
In his conclusion, Obasanjo accused Enron, a major player in the electricity
project, of poor performance and bad faith. Ostensibly angry at the delay in
the project's full take-off and the 30 MW recently connected to the national
grid from the scheme, the president on the American Cable News Network (CNN)
declared: "Enron has played a dirty game on us. Dirty game in two ways."
Beside putting up an exorbitant price, the company according to the
president, also failed to comply with the terms of the contract. Continuing,
Obasanjo said: "The price at which they (Enron) have tried to sell power to
us has been very exorbitant. Two, what they told us they would do, they have
not done."
While refusing to disclose the firm's charges, Enron Vice-President of
Marketing John Ambler said the primary objective of the company was to get
the project on stream. "We have a project that is very close to coming on
line," he said, stressing that the company's desire is to see the project
work effectively in Nigeria, especially in Lagos. He added that Enron is
committed to the IPP and assured Lagosians that they would soon begin to feel
the impact.
The state government brought forward the June 2001 deadline it set for the
commencement of the first phase of the project when it fired the first 30 MW
of electricity to the national grid two weeks ago.
At the Government House on 23 May, Governor Bola Tinubu said his
administration and the contracting firm felt that there was no harm in
bringing the date forward and assured that another 30 MW would be added soon.
He noted that, contrary to expectations that the project would cover the
entire state at a go, it would be in phases and the focus for now would be
industrial consumption. "The concentration for now is not as private homes,
we would soon get there," Tinubu assured.
The controversial IPP programme, which the federal government had at one time
been accused of frustrating, has suffered several setbacks, including Enron's
initial plan to sell its shares to AES, another American company. Last April
was originally fixed for the project's take-off but the failure of Trevi, a
construction company in charge of transmitters, caused a shift in the date.

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

India: India and Bush Administration: Beyond assumptions

06/04/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

SOON after Mr George W. Bush Jr. won the US elections, Indian observers
proclaimed quickly that a Republican administration bodes good for India. A
Republican administration was expected to not pester India about human rights
violations in Kashmir, not force it to sign the CTBT, and get tougher with
China.
Mr George Bush's decision to "drop by" the External Affairs Minister, Mr
Jaswant Singh's meeting with the American National Security Advisor, Ms
Condoleezza Rice, seemed to somehow confirm this false sense of euphoria.
This narrow thinking fails to understand the drivers of Republican ideology.
The reality is the Republicans care about a range of issues that will force
the BJP Government to make some difficult decisions.
Take the first issue of human rights violations in Kashmir. It is true there
are many isolationists in the Republican Party who, probably, do not care
about human rights violation in Kashmir so long as it does not affect them,
and is not happening in their backyard. But there is another powerful force
in Republican politics - the religious wing. This includes powerful members
of the US Cabinet such as The Attorney-General, Mr John Ashcroft, who are
Christian fundamentalists.
Mr Bush himself claims to be a 'born again Christian'.
The religious right is rarely interested in foreign policy; it mostly
concerns itself with moral and social issues such as abortion and teenage
pregnancy. But the few times it does intervene, it is when it feels a country
is "persecuting Christians". And when it does intervene, no Republican
administration dares cross it.
For instance, China is periodically identified as a country that persecutes
Christians. Christian missionaries and ministers are routinely harassed and
imprisoned because they are trying to spread their religion. Because of this
issue, Republican members of the Christian right in Congress have all but
declared a religious war on China, routinely opposing any attempt to improve
relations - including trade relations - with that country.
India, as an emerging power, is more carefully watched, and frequently
mentioned in the American press. Stories of Christian missionaries being
burnt alive and nuns raped are attributed to "elements associated with the
Hindu fundamentalist ruling party". In its latest human rights report, the US
State Department noted these acts with concern.
The Pope's mention of these issues to the Prime Minister, Mr Atal Bihari
Vajpayee, was also noted in the American press. India is, perhaps, half a
step away from being branded as a country that "persecutes Christians".
A self-professed born-again Christian like Mr George Bush would quickly take
up the Christian right's cause, trumping all other bilateral issues. Human
rights may not matter to the isolationists, but Christian, and to a lesser
extent Jewish, religious freedom matters tremendously to a Republican
administration.
The second fallacy was that since the Republicans in Congress did not pass
the Comprehensive Test Ban Treaty, they would not force other countries to
pass the CTBT either. But why are the Republicans are opposed to the CTBT.
The opponents of the CTBT feel that it fails to safeguard American security.
They frankly care little about Indian security. They would love to be able to
restrict India's ability to test and use its weapons. To them, nuclear
weapons not in American hands translates into an unsafe world. Unless India
manages to convince the Republicans otherwise, the Republican administration
is likely to tighten the anti-proliferation screws on India.
The third fallacy relates to a tough, long-term strategic re-alignment the
Bush Administration will demand of India. Mr Bush's foreign policy-makers are
unreconstructed 'Cold Warriors'. In the post-Cold War era, they are
desperately "searching for an enemy". They appear to have settled on China as
"the next enemy". Their next step is to search for "allies"
who rarely challenge their views. Thinkers in Washington and New Delhi
believe that India and the US are "natural allies". But such a decision has
an enormous range of long-term consequences for India.
To discuss just a few: Most of the Indian military's equipment comes from
Russia and the former Soviet Union. Allying with the US will be seen by the
Russians as abandoning them, and this could have an enormous impact on the
legacy military equipment. Recent noises from the Foreign Ministry suggest
India is also eager about Mr George Bush's proposed missile defence
programme. But this technology is far from proven, and during the decade over
which it may be developed (if it gets past Congress), China will most
certainly develop many nuclear weapons. These may, primarily, be a deterrent
against the US, but it will force India into an arms buildup it can barely
afford.
The Americans are reserving their missile defence system for their "closest
allies". India today is neither fish nor fowl - not quite a threat, but not
quite an ally either. It is unlikely that India will be able to convince the
Americans to give it the defence system.
Even if the Americans agree to sell it to India, it could never afford the
sticker price. So, before it rejoices at the notion of anti-China hawks in
the White House, let India ponder over the unexamined consequences.
The final issue is one that may precipitate in the very near term.
Enron and Maharashtra find themselves in a dispute that neither wants to
lose, and that appears to be rapidly getting shriller. Mr George Bush's
background is as a Texas oilman - and he is widely accused in the US of being
beholden to the interests of the energy industry.
In fact, they were among the biggest "contributors to his campaign".
The Enron Chairman, Mr Kenneth Lay, is a friend of Mr Bush's, and was
seriously considered for a job in his Cabinet. He is so well connected that
he was recently accused of influencing who is appointed by the White House to
regulate the energy industry. In the near term, Mr Bush could quite possibly
lean heavily on New Delhi to "make sure that Enron's interests are not
neglected". If New Delhi does not respond to his satisfaction, his opinion of
India, and consequently, his administration's dealings with the country, are
likely to be coloured far more than we think.
Giridhar Srinivasan

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

Enron's Indian Creditors Seek to Salvage Dabhol Project
2001-06-04 08:41 (New York)

Enron's Indian Creditors Seek to Salvage Dabhol Project

     Mumbai, June 4 (Bloomberg) -- Indian banks that loaned money
to Dabhol Power Corp., the local unit of Enron Corp., will try and
persuade their international counterparts to keep alive the $3
billion project at a meeting of lenders in Singapore tomorrow.
    The two-day meeting will be the first between the two groups
of bankers since they met in London on April 24-25 to discuss an
escalating dispute on power prices that has pitted Enron against
the Maharashtra State Electricity Board, Dabhol's only customer.
     ``We will discuss how we can go about resolving the
problem,'' R.S. Agarwal, executive director at Industrial
Development Bank of India, or IDBI, said. IDBI is the biggest
lender to the Dabhol project.
     The outcome of the Singapore meeting, to be held in the
offices of ABN Amro Holding NV, one of the biggest international
lenders to the project, will be crucial to the banks, which have
loaned as much as $2 billion to Dabhol.
     Indian banks fear the Maharashtra State Electricity Board's
decision to stop buying power from Dabhol may strengthen
international lenders' resolve to terminate the project and invoke
government guarantees to recover their loans.
     ``Foreign lenders want to close the (Dabhol) chapter,'' said
Pradyumna Kaul, an activist with Enron Virodhi Andolan, a non-
government organization opposed to the project. ``They are eager
to call in their loans, even if it means taking a 10 to 15 percent
cut, rather than spend more on supervision and legal expenses
while watching the saga linger.''
     Local banks such as IDBI are most at risk as the Maharashtra
and federal governments have guaranteed only foreign banks' loans
of about $600 million to the venture.
     IDBI alone has exposure totaling 21.58 billion rupees ($460
million) to the project, including 15.28 billion rupees in
guarantees.
     Foreign lenders such as ABN Amro, Citibank N.A., a unit of
Citigroup Inc., Bank of America and Credit Suisse First Boston in
April approved Dabhol's decision to begin termination of its power
supply contract with the board. They are in favor of canceling the
project.
     India's government risks having to pay 170 billion rupees in
fines, resulting from guarantees it has offered on payments and
loans, if Enron pulls out of the project.

                             The Fight

     Maharashtra State Electricity Board Wednesday stopped buying
power from Dabhol as the dispute escalated. The board on May 24
told Dabhol Power Co. it was canceling its power purchase
contract, six days after Dabhol gave the board notice it was set
to pull out of the project because of the six-month dispute over
bills owed by the board.
     ``The MSEB's move has complicated the matter. We did not
expect MSEB to do this,'' Agarwal at IDBI said last week.
     Dabhol, 65 percent owned by Enron, and the board are in
dispute over 3 billion rupees in unpaid bills for December and
January. Others bills through March have been paid.
     The board has refused to pay the December and January bills,
saying they should be lowered to reflect a 4 billion rupee penalty
the board imposed on Dabhol for not supplying power at full
capacity on Jan. 28.
     The dispute Thursday prompted debt-rating company Fitch to
change its outlook on India to ``negative'' from ``stable.'' Fitch
said the climate for foreign investors has deteriorated.
     ``The dispute indicates that India's government may not be
willing to live up to its contractual obligation,'' the Economic
Times quoted Kristin Lindow, India analyst at Moody's Investors
Service, as saying. ``As a consequence, this would further deter
foreign director investment from coming into the country.''
     Moody's and Standard & Poor's have stable outlooks on the
country's sovereign rating. S&P has an investment grade rating of
``BBB'' on the country's sovereign debt. Moody's, like Fitch,
rates India's debt as junk at ``BB2.''

Enron Japan's Hirl on Power Deregulation: Commodity Comment
2001-06-04 06:29 (New York)

     Sydney, June 4 (Bloomberg) -- Joseph Hirl, chief executive of
Enron Corp.'s Japanese unit, Enron Japan Corp., comments on the
outlook for deregulation of Japan's electricity industry. He spoke
at the Coaltrans Asia conference in Sydney.

On Japanese government policy:
     ``The government does have a strong commitment to
deregulation, but there are some significant policy concerns''
including a ``greater than 80 percent reliance on imports'' of
energy.
     ``The market has been open a bit over a year, however not
much has happened. No genuine competition exists under the current
system. The companies there recognize that it will happen. It's
inevitable.
     ``The level of competition in Japan now is similar to the
U.S. in 1994-95, or Europe in 1996-97. Prices are about 400
percent higher than the U.S.
     ``To put it in perspective, I won't give the name of this
large chemical company, but it consumes about 600 megawatts. If
you compare that business with a company that's just like it in
Houston, Texas, the difference would be about $250 million a year
in the cost of electricity.
     ``For such an export-led economy, that's a difficult
situation to be in, and it's contributing to the overall malaise
in the economy.''

On the likelihood of a California-style electricity crisis in
Japan:
     ``Despite exploitation of California by the utilities, METI
(Ministry of Economy, Trade and Industry) and others recognize it
was a problem of design, not competition'' in California.


It's changed.

Stephanie Piwetz   04/13/2001 08:10 AM

To: Kate Symes/PDX/ECT@ECT
cc: Kimberly Indelicato/HOU/ECT@ECT

Subject: 580930.01

Kate, amerex said cp should be Coral Power instead of El Paso

, THANKS


Dear ClickAtHome Participant,

ClickAtHome is interested in making sure you have the latest security tools available to you.  As part of the ClickAtHome program, you may download and update Norton Anti-Virus and BlackICE Defender software from the ClickAtHome Portal.

Norton AntiVirus software repairs computer virus infections automatically.  It scans and cleans your hard drive, diskettes and both incoming and outgoing email.
BlackICE Defender is an industrial-strength anti-hacker system that protects your PC by scanning your DSL, cable modem, or dial-up Internet connection looking for hacker activity. When it detects an attempted intrusion, it automatically blocks traffic from that source, keeping intruders from accessing your system.
By installing and updating both Norton AntiVirus and BlackICE Defender, your ClickAtHome PC will have the latest security offered by these two products.
Instructions for accessing the Portal and downloading the software are provided below.
If you have any questions or wish to provide feedback, please email clickathome@enron.com.  Thank you for your participation in ClickAtHome.
The ClickAtHome Team!
__________________________________
To download the software:
1)  Visit the ClickAtHome Portal at www.clickathome.net from your ClickAtHome PC.
2)  Logon to the Portal with your personally created Portal User ID and Password, or create a new account if you have not created a user ID and password by selecting "Create a NEW Account" at the top left corner.  The Portal User IDs and Passwords are created by you.  The Enron Help Desk is not able to assist with Portal support, but if you need any assistance, please send an email to "clickathome@enron.com".
3) Once you have logged on, select "Tools" from the top menu bar.
4) Under the "Secure Download" heading, click on "BlackICE" or "Norton" and log on to the download page using your SAP ID and Date of Birth.
5) Follow the directions provided on screen.


2nd pick is available if you can package a good offer together.


Brent-

Are we still on target to receive your comments within the next day or so?
We really need to complete this process.

I look forward to hearing from you.

Thanks,

John

	Brent Hendry
	08/25/2000 04:30 PM

		 To: John Viverito/Corp/Enron@Enron
		 cc: Jonathan Whitehead/AP/Enron@Enron, Mark Taylor/HOU/ECT@ECT
		 Subject: Re: Japanese ISDA Documentation and Japanese Weather GTC
Documentation

I apologize for the delay. I hope to be able to get to the reviews early next
week.
Thanks,
Brent

	John Viverito
	08/20/2000 08:24 PM

		 To: Mark Taylor/HOU/ECT@ECT, Brent Hendry/NA/Enron@Enron
		 cc: Jonathan Whitehead/AP/Enron@Enron
		 Subject: Japanese ISDA Documentation and Japanese Weather GTC Documentation

Mark and Brent-

Please inform me when you anticipate your respective reviews of the ISDA
documentation and Japanese Weather GTC documentation will be completed.

In the interim, if you have any questions, please contact me.

Thanks,

John


EFFECTIVE IMMEDIATELY, MY NEW E-MAIL ADDRESS IS joya.williams@enron.com.
PLEASE DELETE joya.davis@enron.com from your address book.

THANKS.

Happy Holidays!
Joya' F. Williams, Sr. Admin. Assistant
EGM Legal Department
1400 Smith St., EB3855A
Houston, Texas  77002
joya.williams@enron.com
(713) 853-9559 (direct dial)
(713) 646-4842 (fax)


John,

Please find the expiration schedule below for the EOL COAL NYMEX monthly
products.

Please call with any questions.

-Chad Pennix
Ext. 33891


OK

DG    3-9573


I will be leaving today at 4:00, and will be in a meeting from 2:30 until then. If we need to discuss anything today, please give me a call beforehand.


TOPIC:           The Midcoast Story: $0 to $600 Million in Five Years

SPEAKER:     Dan C. Tutcher, president, Enbridge (U.S.) Inc.

DATE:            Tuesday, October 9, 2001

TIME:             11:30 am - 1:15 pm

LOCATION:     Houston Club, 811 Rusk (New Location)

RSVP:            By 5:00 p.m., Friday, October 5, 2001
                       Email acg@kerr-solutions.com, fax 281/424-4770, call
713/593-4700

COSTS:          Members with a reservation by the deadline: $25
                       Guest accompanying a member: $30
                       Walk-ins and guests without reservations: $40
                       Credit card required for reservations; no shows will
be billed.

When Enbridge (U.S.) Inc. acquired Midcoast Energy Resources, Inc. in May
2001, Midcoast had over 80 pipeline systems in 10 states, the Gulf of
Mexico and Canada, comprising over 4,100 miles of pipe, which were
transporting in excess of 1.25 bcf/d, with total revenues of $800 million
in 2000.  Midcoast had grown from $0 to $600 million in just five years in
its industry.  So why did Dan Tutcher decide it was time to stop what
Midcoast was doing and merge?

About speaker:  Dan C. Tutcher is president of Enbridge (U.S.) Inc.,
president and director of Enbridge Energy Partners, L.P. (formerly Lakehead
Pipe Line Company), and group vice president of Transportation Group South,
wholly owned by Enbridge Inc.  Additionally, Mr. Tutcher serves as
president and CEO of Magic Interests, L.P., a Texas corporation controlled
by him.

Prior to Enbridge's acquisition of Midcoast Energy Resources, Inc.
(Midcoast) in May 2001, Mr. Tutcher founded and served as chairman of the
board, president and CEO of Midcoast from its formation in 1992.

The third generation of a petroleum industry family, Mr. Tutcher has over
30 years experience in owning and operating companies involved in petroleum
production, gas processing, natural gas gathering and transmission.  He has
been involved in the design, construction and operation of petroleum
pipelines and all types of petroleum equipment and storage, as well as oil
and gas exploration and production.  He earned a BBA from Washburn University.

Mr. Tutcher serves on the board of directors for the Interstate Natural Gas
Association of America, in addition to the Gas Processors Association and
the board of directors of Berkshire Asset Management Incorporated; he is a
past member of the Utilities Advisory Board of Cigna Corporation.  Active
within the community as well, he serves as chairman and director of Cancer
Counseling, Inc. of Houston.
============================================
RESERVATION DEADLINE:  For reservations, fax 281/424-4770, call the voice
mail number 713/593-4700 or e-mail acg@kerr-solutions.com no later than
5:00 p.m. on Friday, October 5, 2001.

Yes, I will attend the TUESDAY, October 9ACG luncheon.

NAME:
COMPANY:
PHONE:
GUESTS:
CC# for payment:
Circle one:       MC       V       AE
Expiration date:

=======================
2001-2002 HOUSTON CHAPTER SPONSORS
Andersen * Baker Botts LLP * Cooper Cameron Corporation
Frost Bank * Jackson Walker LLP * McGriff, Seibels & Williams of Texas
Porter & Hedges, L.L.P. * Southwest Bank of Texas * Varco International

Association for Corporate Growth (www.acg.org/houston) is the
networking organization for professionals involved in deal making,
mergers & acquisitions, equity capital, strategic alliances,
and other aspects of corporate growth and development.

=======================
Dottie Kerr (dottie@kerr-solutions.com)
Association for Corporate Growth - Houston Chapter Administrator
Voice mail: 713-593-4700


please print
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/10/2000
09:32 AM ---------------------------

	Enron North America Corp.

	From:  Jeff Smith                           10/09/2000 03:46 PM

To: Mike McConnell/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT, John L
Nowlan/HOU/ECT@ECT, Gary Hickerson/HOU/ECT@ECT, Jere C Overdyke/HOU/ECT@ECT,
George McClellan/HOU/ECT@ECT, Mark Tawney/HOU/ECT@ECT, Sheila
Glover/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Scott Earnest/HOU/ECT@ECT, D Todd
Hall/HOU/ECT@ECT
cc: Brent A Price/HOU/ECT@ECT, Thomas Myers/HOU/ECT@ECT, Cris
Sherman/HOU/ECT@ECT, Stanley Farmer/Corp/Enron@ENRON
Subject: EGM Management Summary / Hot List as of 10/4

Attached is the initial 4Q Management Summary for activity through 10/4 and
this week's Hot List.  Please give me a call if you have any
questions/concerns.

Thanks,
Jeff


Hey, just wanted to let you know that Melissa was induced this morning and
baby Lauren should be here sometime later this afternoon.  I'm not sure if
you are on her email list but I will forward any pictures I get on to you.
Hope you had a good weekend, sounds like you're definitely living the high
life with all the single girls!  How fun!  :)
I, on the other hand, am picking out baby furniture & decorations....crazy
isn't it?
Well, take care and I'll talk with you soon.

-Amy


The IT Compliance team has been asked to conduct a process review and process
development project with the Clickpaper team.  The immediate plan is to focus
on key processes prior to the go live date of July 24.  Arthur Andersen has
agreed to provide experienced personnel to assist with this effort as
necessary.

Attached please find a draft work program of the processes we plan to focus
on over the next 13 days.  Under the execution section, the work program
identifies the priority processes and the contacts we will initiate
interviews with.  We will begin scheduling interviews this afternoon.

Thanks in advance for your cooperation,

Andrew Parsons
3-6665


i had mentioned a  week ago that i wanted to show you what we were doing here at genesis park, not  knowing what the week would bring...ken rice mentioned to day that he was going  to come by tomorrow and that he mentioned that to you in case you want to park  any personal staff here and keep a desk as you contemplate your next move,  we  overbuilt the space intentionally in contemplation of an entrepreneur in  residence concept and would be glad to show you around, let me know what works  713 858 3161


so sorry to hear about your dog, Weller.   thanks for telling andrew!

Hope you guys are well.  If you feel like a  road trip, Caroline's 1st b-day party is July 14th (on a Sat.)  Would love  to see ya'll!

Laura


Sally,
I just wanted to follow up with you on John Postlewaite's options that we
discussed when we enticed him to stay here at Enron.  I asked Kim Melodick
and Norma Villareal if they knew anything about them and they did not.  I
know you spoke to David Oxley about this.  Can I follow up with him?  Thanks.
Kristin


True, but the limits and associated P&L notifications relate to commodity
groups rather than business units - they used to be the same. Unfortunately,
where we have become more sophisticated and, as in this case legitimately
hedge a natural exposure with some other commodity, the latter commodity (and
associated P&L) gets counted in the commodity "cut".

Loss notifications, especially, serve as a "flag", and provided the
explanation makes sense and everyone who needs to make a decision about it,
can do so, then it serves its purpose. The other upside is that when,
sometime in the future, we have to refer back to an event, we have good
"institutional memory".

I talked to Brent about this yesterday - my advice was that notifications
would be better drafted by those closest to the positions (i.e. his mid
office groups)

Rgds
DP

 -----Original Message-----
From:  Shankman, Jeffrey A.
Sent: Thursday, June 21, 2001 9:11 AM
To: Abel, Chris; Buy, Rick; Nowlan Jr., John L.; Murphy, Ted; Port, David;
Schultz, Cassandra; Whalley, Greg
Cc: Apollo, Beth; Wilson, Shona; Thibodeaux, Kenneth; Price, Brent A.; Hall,
D. Todd; Burns, Jennifer; Romero, Araceli; Taylor, Liz; Wallace, Cassi
Subject: RE: Final 6/19/01 Global Products Notification

In this Violation memo, you are taking out positive P&L associated to a nat
gas posion in the LPG books which is a true hedge versus some long dated
propane positions.  When you add back the hedge P&L I believe there is no
violation.

Jeff

 -----Original Message-----
From:  Abel, Chris
Sent: Wednesday, June 20, 2001 4:25 PM
To: Buy, Rick; Nowlan Jr., John L.; Murphy, Ted; Port, David; Schultz,
Cassandra; Shankman, Jeffrey A.; Whalley, Greg
Cc: Apollo, Beth; Wilson, Shona; Thibodeaux, Kenneth; Price, Brent A.; Hall,
D. Todd; Burns, Jennifer; Romero, Araceli; Taylor, Liz; Wallace, Cassi
Subject: Final 6/19/01 Global Products Notification

Attached is the Enron Global Markets Global Products Trading notification
memo for  5 Day Cumulative Loss for June 19, 2001.  The Office of the
Chairman for Enron Global Markets is responsible for printing out a hard copy
of this memo, signing it and returning the hard copy to Chris Abel at 3155a,
who will forward it to RAC to obtain their signature.

Thank You

 << File: 6-19 Global Products 5 Day.doc >>


These two deals are entered with a special counterparty name that looks like
it may have been set up for some special deal.  There is another counterparty
name out there that looks just the same only without the very last series of
letters.  I will check here and see if anyone knows the difference.  There is
a note in the Global System that says Heather Dunton had this CP set up.  If
you could check with her and see if it should be used for these deals or if
the other CP should be used.

Thanks!


---------------------- Forwarded by Chris Germany/HOU/ECT on 02/19/2000 01:21
PM ---------------------------

Clayton Vernon@ENRON
02/17/2000 09:36 AM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Re: Natasha-

Chris-

Natasha's email address is:

textile@warlock.kharkov.ua

Send her a digital picture, and introduce yourself to her. Her sister speaks
fluent English, and will translate any difficult parts.

Clay


Dave,

Quick update.

It appears Art is on vacation all week.  He is obviously not too concerned about the issue.  I am still waiting to hear back from David Tang to see if they want one of their guys to go to the plant tomorrow.

We could/should get FERC approval any day.  This is the last real CP for this deal.

Let me know if you and Cyrus hook up.

Thanks,

Don


The meeting will be in Jeff's office on Wednesday (tomorrow) at 3:00 to 3:45 p.m.

Rae Meadows
Senior Administrative Assistant
Enron North America
1400 Smith Street
Houston, Texas 77002
713-853-9282
rae.meadows@enron.com


Sorry it's taken so long, Lisa Mellencamp (legal) and I will be.    See you
Monday afternoon/evening at your offices at 101 California, Suite 1950.
Steffes is joining us.

 -----Original Message-----
From:  Dasovich, Jeff
Sent: Wednesday, April 11, 2001 10:25 AM
To: Tribolet, Michael
Subject: Re: Composition of unsecured creditors committee

Michael:
Do we know who from Enron will actually be on the committee?
Best,
Jeff

	Karen Denne 04/11/2001 09:29 AM 	   To: Jeff Dasovich/NA/Enron@Enron, Susan J
Mara/NA/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, Paul
Kaufman/PDX/ECT@ECT, Mark Palmer/Corp/Enron@ENRON  cc:   Subject: Composition
of unsecured creditors committee

fyi...
---------------------- Forwarded by Karen Denne/Corp/Enron on 04/11/2001
09:29 AM ---------------------------
From: Michael Tribolet/ENRON@enronXgate on 04/11/2001 07:11 AM
To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Rick
Buy/ENRON@enronXgate, William S Bradford/ENRON@enronXgate, Richard
Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Karen
Denne/Corp/Enron@ENRON, Lisa Mellencamp/HOU/ECT@ECT, Vicki Sharp/HOU/EES@EES,
Travis McCullough/HOU/ECT@ECT
cc: jklauber@llgm.com@SMTP@enronXgate, ceklund@llgm.com@SMTP@enronXgate,
byoung@llgm.com@SMTP@enronXgate, jlhuemoe@llgm.com@SMTP@enronXgate

Subject: Composition of unsecured creditors committee

Please see appointment list attached below:

KES Kingsburg L.P. (QF?)
City of Palo Alto (pension holdings?)
Enron Corp & Affiliates
State of Tennessee (pension holdings?)
Dynegy Power Marketing, Inc.
The Davey Tree Co. (vendor)
GWF Power Systems (QF)
U.S. Bank (Trustee on PCB's)
Merrill Lynch (CP holder?)
The Bank of New York (Bond Trustee)
Bank of America (Agent on revolver)

 -----Original Message-----
From:  "Johnson, Stephen" <Stephen.Johnson2@usdoj.gov>@ENRON
[mailto:IMCEANOTES-+22Johnson+2C+20Stephen+22+20+3CStephen+2EJohnson2+40usdoj+
2Egov+3E+40ENRON@ENRON.com]
Sent: Tuesday, April 10, 2001 7:52 PM
To: Johnson, Stephen; 'jmhpower@aol.com';
'grant_kolling@city.palo-alto.ca.us'; Tribolet, Michael;
'tmilne@mail.state.tn.us'; 'john.c.herbert@dynegy.com';
'david.adante@davey.com'; 'pmar@mofo.com'; 'keith.marshall@usbank.com';
'mlurie@exchange.ml.com'; 'gbush@bankofny.com';
'clara.strand@bankofamerica.com'
Subject: RE:

I'm pretty sure the form was left off....

 -----Original Message-----
From:  Johnson, Stephen
Sent: Tuesday, April 10, 2001 5:49 PM
To: 'jmhpower@aol.com'; 'grant_kolling@city.palo-alto.ca.us';
'michael.tribolet@enron.com'; 'tmilne@mail.state.tn.us';
'john.c.herbert@dynegy.com'; 'david.adante@davey.com'; 'pmar@mofo.com';
'keith.marshall@usbank.com'; 'mlurie@exchange.ml.com'; 'gbush@bankofny.com';
'clara.strand@bankofamerica.com'
Subject:

Stephen L. Johnson
Attorney
United States Department of Justice
Office of the U.S. Trustee
250 Montgomery Street, Suite 1000
San Francisco, CA 94104

415-705-3333 tel.
415-705-3379 fax
stephen.johnson2@usdoj.gov

 - Appointment of Committee.pdf << File: Appointment of Committee.pdf >>


Attached for your information, is an updated list of the Work Order Numbers.
related to Cost Center 105657.

Revision:  Work Order No. E.002050 for East Midstream Origination has been
added to the list.

Best regards,
Taffy


Effective immediately, responsibility for the operational, environmental, safety and social audits of Enron facilities is transferred from Enron Transportation Services (ETS) Quality Management to Corporate Public Affairs under Mike Terraso, Enron's vice president of Environment, Health and Safety, and Chief Environmental Officer.  The current directors of Facility Audits, Chuck Goode and Steve Allen, will report to Mike and will be responsible for leading the corporate asset operations audits.  Technical experts from business unit operations and engineering will continue to serve on the multidisciplinary audit teams.   Audit responsibility for ETS assets will remain in ETS.


see this attachment:


---------------------- Forwarded by Hunter S Shively/HOU/ECT on 11/27/2000
09:51 AM ---------------------------

Jacquelyn Burks@ENRON
11/22/2000 11:13 AM
To: Chris Gaskill/Corp/Enron@Enron, Mike A Roberts/HOU/ECT@ECT, Geoff
Storey/HOU/ECT@ECT, Hunter S Shively/HOU/ECT@ECT
cc: Johnny Palmer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: Interview Schedule - Carlos Morales

Hello,

Please let me know what's your availablity for Dec. 4. This interview is for
Carlos Morales, I'm trying to get Carlos and Dipak in on the same day for an
interview. Please let me know what day and time is good for you.

Thanks,

Jackie

Johnny Palmer@ENRON_DEVELOPMENT
11/22/2000 10:43 AM
To: Jacquelyn Burks@Enron
cc:

Subject: Please schedule

Jackie,

Please schedule this interview for 12/4.  In addition to the following
interviewers please add:  Chris Gaskill, Mike Roberts, Geoff Storey, and
Hunter Shively.

Carlos can be reached at:
H: (617) 738-0732
C: (617) 216-3691

Thanks,
Johnny
54017
---------------------- Forwarded by Johnny Palmer/ENRON_DEVELOPMENT on
11/22/2000 09:58 AM ---------------------------

Jennifer Fraser@ECT
11/16/2000 01:18 PM
To: Johnny Palmer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Re: Enron - Mathematician Opportunity

Let's interview him

Suggested Interviewers
Vince Kaminski
Stinson Gibner
Jeff Shankman
Jen Fraser

Thanks
Jen

Johnny Palmer@ENRON_DEVELOPMENT
11/16/2000 12:59 PM
To: Jennifer Fraser@ECT
cc:
Subject: Re: Enron - Mathematician Opportunity

Jennifer,

Please review and inform me of your interest in Carlos' experience.

Thanks,
Johnny
54017
---------------------- Forwarded by Johnny Palmer/ENRON_DEVELOPMENT on
11/16/2000 12:58 PM ---------------------------

Carlos Morales <carlosm@math.bu.edu> on 11/06/2000 02:12:32 PM
To: Johnny.Palmer@enron.com
cc:

Subject: Re: Enron - Mathematician Opportunity

Dear Johnny Palmer,

I am a Mathematics Ph.D. candidate at Boston University, specializing on
statistics.  I have worked at Citizens Power (now Edison Mission Marketing
and Trading) since April of this year developing software for their
trading desk and risk management department.

In particular, I have implemented state-of-the-art
procedures to price derivative contracts on gas and electricity, and
worked on default correlations among counterparties.

Attached is a html copy of my vita.

Sincerely,

Carlos J. Morales
Department of mathematics and Statistics
Boston University

 - cv.html


Thursdays would be OK by me provided that we don't have to meet on
Thanksgiving.

W. Wayne Gardner
Enron Broadband Services
1400 Smith Street
Houston, TX  77002-7361
Phone:  713 853 3547
Fax:  713 646 2532

	Jeff Dasovich@ENRON
	Sent by: Jeff Dasovich@ENRON
	06/11/2000 17:17

		 To: Wayne Gardner/Enron Communications@Enron Communications
		 cc:
		 Subject: Re: Draft questions on regulatory aspects of bandwidth trading

Greetings Wayne:

Sorry that I missed the last meeting.  I'll be attending by phone this week,
but would like to attend in person as often as I can (understanding that our
meetings will be weekly).  Now don't shoot me, but I was wondering if it
might be possible to have the meetings on Thursday mornings.  That way I
could actually be in Houston for the meetings (which my schedule doesn't
permit me to do on Wednesdays).  If it's too complicated, don't sweat it; I
can continue to do the meetings by phone.  But if Thursdays can fit into
folks' schedule, that would be great.  Thanks and talk to you on Wednesday.

Best,
Jeff