Democrats Prepare to Duel Bush Over Energy Price Caps in West
The Wall Street Journal, 06/01/01

Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
Los Angeles Times, 06/01/01

Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
The Wall Street Journal, 06/01/01

Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
The Wall Street Journal, 06/01/01

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL
Asia Pulse, 06/01/01

GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001

INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS
Asia Pulse, 06/01/01

Thomas E. White becomes Secretary of the Army
M2 Presswire, 06/01/01

Some light at last!
The Economic Times, 06/01/01

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
Associated Press Newswires, 06/01/01

California Lawmakers Eye Billing Businesses for Edison Rescue
Dow Jones Business News, 05/31/01

Construction of power plant in DeSoto County is underway
Associated Press Newswires, 05/31/01

Politics & Policy
Democrats Prepare to Duel Bush Over Energy Price Caps in West
By John Harwood and Jeanne Cummings
Staff Reporters of The Wall Street Journal

06/01/2001
The Wall Street Journal
A16
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -- If you talk to economists, many will say President Bush is on
solid ground in opposing caps on soaring electricity prices in California and
elsewhere. But if you talk to voters, many will suggest he has political
problems.
And now that Democrats control the U.S. Senate, they are poised to make those
problems a lot worse.
Mr. Bush got a taste of what is coming in his widely touted showdown with
California Gov. Gray Davis in Los Angeles this week. The Republican president
repeated his familiar argument that capping wholesale electricity prices
would do nothing to curb demand or increase the supply of power for
California. But the Democrats' Mr. Davis, fortified by polls showing that 70%
of Californians favor price caps, managed to get equal billing during Mr.
Bush's visit for his argument that they are needed to keep the state from
slipping into recession and threatening the national economy in the process.
Because Sen. Jim Jeffords of Vermont left the Republican Party last week and
changed control of the Senate, Democrats now have a more effective national
platform to press the same arguments -- and to threaten Mr. Bush's political
standing beyond the already hostile turf of California. The incoming chairman
of the Senate Energy and Natural Resources Committee, Democratic Sen. Jeff
Bingaman of New Mexico, says he plans to move soon on legislation capping
prices for California and other Western states, a bill that has attracted
some GOP support as well.
"I think it's clear to anybody that the prices being charged for wholesale
power are excessive," said Sen. Bingaman, in an interview while he was
heading toward California on a fact-finding mission. "I don't believe it's
going to be adequate to get us through this summer, to just continue saying
that eventually supply will come into line with demand and the problems will
be resolved."
Meantime, the incoming chairman of the Permanent Subcommittee on
Investigations, Democratic Sen. Carl Levin of Michigan, plans to investigate
the role of oil companies in higher gas prices. "This is the manipulation of
prices, and we've got to investigate it because our people in Michigan are
absolutely furious," Sen. Levin says. Just as Republicans once used the
machinery of Congress to probe then-President Clinton's problems, Democrats
see ripe opportunities for embarrassing an ex-oilman president with strong
links to Texas energy-producing companies that are profiting from today's
supply squeeze.
During the 2000 presidential campaign, five of the major companies now
supplying power to California -- Duke Energy Corp., Dynegy Inc., Enron Corp.,
Reliant Energy Inc., and Williams Cos. -- gave some $3.6 million to Mr. Bush
and the GOP, more than triple the amount donated to Democrats. Three of those
companies are based in Mr. Bush's home state of Texas, which only adds to the
political tensions.
The Democratic offensive has the GOP worried. Price caps amount to "terrible
policy, but good politics," frets Republican pollster Neil Newhouse. Mr. Bush
now faces "a difficult job" overcoming the Democratic arguments for caps, he
adds, because "control of the Senate has given them a megaphone on issues
that they just didn't have before."
That doesn't necessarily mean Mr. Bush ultimately will suffer grave damage.
As congressional Republicans learned to their chagrin in battles with Mr.
Clinton, the presidential bully pulpit remains the most potent weapon in
American politics for framing policy debates. Even with that advantage,
though, the Clinton administration found that the initial appeal of arguments
on issues such as tobacco regulation and prescription drugs faded under
sustained counterattack by Republicans and affected industries.
And so far, polls are showing that Mr. Davis also is paying a political price
in California for the crisis. Still, Mr. Davis, who faces re-election next
year and may later seek the 2004 Democratic presidential nomination, believes
he can limit the damage by emphasizing his efforts to expand supply and
spotlighting the actions of energy companies in Texas and elsewhere. On CNN's
"Larry King Live" this week, he complained that "money sucked out of this
state" amounts to "a massive transfer of wealth" from Californians to the
industry.
Whatever the political ramifications, they aren't limited to California.
Consumers in Washington, Idaho and Montana that are serviced by the same
electric grid have seen 30% increases in their utility rates. That is why Mr.
Davis, with support from some GOP governors in the West, is asking the
Federal Energy Regulatory Commission to impose short-term wholesale price
caps to help protect electricity consumers from soaring rates until new power
plants approved for construction in California increase supply enough to
bring prices down through market forces. California Democratic Sen. Dianne
Feinstein and Oregon Republican Sen. Gordon Smith are offering legislation to
accomplish that in the committee that Mr. Bingaman now will chair.
As a matter of policy, most economists probably would agree with Mr. Bush's
free-market position on price caps, though that sentiment is hardly
unanimous. As he met with the president this week, Mr. Davis released a
letter from 10 prominent economists backing price caps as a temporary remedy
for a market "not characterized by effective competition." One of the
signatories was Alfred Kahn, architect of airline deregulation under
President Carter.
But Bush economic advisers, heeding the free-market arguments that have held
the high ground in regulatory policy debates since the Reagan era, insist
that such caps would distort the energy market and be difficult to abandon
even when market conditions turn more favorable for consumers. "Price caps do
nothing to reduce demand, and they do nothing to increase supply," Mr. Bush
said in California this week.
Mr. Davis says the Federal Energy Regulatory Commission is obliged under law
to assure "just and reasonable" prices, and he says he will sue the agency to
force it to act despite the dismissal earlier this week of a similar lawsuit
filed by California's Democratic legislative leaders. Whether the governor's
effort succeeds, it could provide another forum in which supporters of price
caps can make their case. In discovery, for instance, California attorneys
may be able to get industry data on how much the wholesalers are paying to
produce electricity and their real costs of delivering it.
Such transactions are drawing attention because of the significantly higher
prices being charged in California compared with other states. This week, for
instance, the price of a million British Thermal Units of natural gas in the
San Juan Basin in New Mexico was $2.80, said one economist for the Senate
Energy Committee. But when that gas arrived at the Southern California
border, she said, the price was $10.20 per million BTUs.
Mr. Bush himself voiced concern about such differentials in his meeting with
Mr. Davis, and ordered the FERC to step up monitoring for price gouging. He
has designated Pat Wood, a recent FERC appointee who headed the Texas Public
Utilities Commission during his governorship, as the administration's lead
liaison to California.
Mr. Wood, in fact, could end up an increasingly important player as the
crisis in California and other Western states plays out this summer. Mr.
Wood, who supported some price caps in Texas, is considered more flexible on
the issue than is FERC's current chairman, free-market champion Curtis
Hebert. During his confirmation hearings, Mr. Wood said it may be too late
for price caps because the commission would need months to study materials
and determine an appropriate market rate.
If the administration continues resisting caps, Democrats vow to score
political points heading into the 2002 congressional elections. "Bush is the
individual who ginned this up into a crisis" by frequently calling attention
to the nation's energy problems, says Jim Jordan, executive director of the
Democratic Senatorial Campaign Committee. "Yet the administration won't
consider any serious short-term action to alleviate the problem for the
public."
--- Energy Problems?

Public views of President Bush and energy problems, nationally and
among Californians:

Nationally
Q: In general, do you approve or disapprove of the way President Bush
is handling his job as president?

Approve 52%
Disapprove 38%

Q: Based on what you have read or heard, do you favor or oppose
President Bush's plan to deal with the country's current energy
problems?

Poor job 49%
Good job 38%

Q: How do you think President Bush is handling energy?

Oppose 42%
Favor 38%
Unsure 20%

In California
Is it a good or bad thing for the federal government to cap energy
prices?

GOOD THING BAD THING NO OPINION

All adults 70% 24% 6%
Registered voters 68 26 6
Democrats 79 17 4
Republicans 57 37 6
Other 63 29 8

Sources: National poll numbers from CNN/Time poll; California numbers
from the Field Poll

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

California; Metro Desk
Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
RICH CONNELL; ROBERT J. LOPEZ
TIMES STAFF WRITERS

06/01/2001
Los Angeles Times
Home Edition
B-1
Copyright 2001 / The Times Mirror Company

California officials are probing a vast private network of electricity
trading floors suspected of being a central culprit in California's spiraling
energy prices.
A special state Senate panel investigating alleged manipulation of the energy
market is zeroing in on hundreds of thousands of secretive transactions each
year that help determine whether California will have the power it needs--and
what it will have to pay to get it. Those activities also are central to a
lawsuit by the San Francisco city attorney, who has accused power companies
of using unfair business practices to reap huge profits from the state's
volatile and vulnerable energy market.
A single electron may be traded nearly a dozen times, often at escalating
prices, before reaching California. By then, the actual cost of producing the
electricity may have no relation to its price.
Unlike other commodity and stock exchanges, the frenzied daily activity on
the energy trading floors escape any independent oversight, which critics
contend makes the operations ripe for collusion and price-fixing.
"They're playing the California power game," said attorney Michael Aguirre, a
former federal prosecutor now suing power companies on behalf of Lt. Gov.
Cruz Bustamante. "The trading is the epicenter of the whole enchilada. They
trade and inflate the value."
Power company representatives say their trading floors operate legally and
ethically. "I don't think there has ever been the slightest shred of evidence
[of] something illicit or wrongdoing," said Gary Ackerman of the Western
Power Trading Forum, an industry trade group.
Ackerman and players in the market say prices are not always ratcheted up
through the trading. Often, they say, traders can match supply and demand to
help stabilize prices through daily transactions and long-term contracts.
Still, Aguirre and others say, these sophisticated trading operations have
outmaneuvered bureaucrats at Cal-ISO and the state Department of Water
Resources, the agencies responsible for buying billions of dollars worth of
power over the past several months.
The sprawling trading floors, scattered across the country, are marvels of
high technology. Amid banks of computers and huge wall screens that track
weather, electricity prices and demand across vast regions, mathematicians,
meteorologists and rows of gung-ho traders try to optimize profits buying and
selling one of the world's most volatile commodities.
"These are trading floors that are well outside any regulatory format," state
Sen. Joseph Dunn (D-Santa Ana) said Thursday. "What impact do these trading
floors have on the situation in California?"
Plant Operations Also Scrutinized
Although trading floors are an important focus of state authorities, the
probes of the power companies include an array of issues. Investigators are
digging into the operations of power plants to determine whether unnecessary
shutdowns have been used to tighten supplies and hike prices. Dunn, a onetime
consumer attorney, is heading the Senate investigation panel that is trying
to unravel these issues and the role of the trading floors, operated by the
nation's largest power marketers: Enron, Mirant, Duke Energy, Dynegy Inc.,
Williams Cos. and Reliant.
The committee is seeking records that could determine whether the power
companies have swapped information on trading tactics to maximize prices.
Among dozens of categories of documents Dunn's committee has requested--and
may ultimately subpoena--are computer records from trading floors, recordings
of communications between traders for different companies and training
manuals for traders.
"We know one product of that trading is it drives up the price. . . . What
are you trading for, other than to drive up the price?" Dunn said in a recent
interview.
His committee, which has yet to uncover any wrongdoing, is battling with the
power companies to obtain information the firms insist is confidential.
San Francisco City Atty. Louise H. Renne also is focusing on trading-floor
activity.
"That is a central concern of ours," said Owen Clements, Renne's chief of
special litigation. Clements suspects power traders may be "churning"
megawatts through repeated sales and boosting prices.
"If everyone passes it around and makes a profit, and the ratepayer and the
state of California are stuck with the bill . . . that certainly looks like
an unfair business practice," he said.
A spokesman for Houston-based Enron, which operates one of the busiest
trading operations, said critics misunderstand the energy market, where
profits are not necessarily tied to high prices.
"We're agnostic about the direction of prices," Mark Palmer said. "We make
money one way or the other." He said the trick is in having a diversified
portfolio--and offering unique risk services--to absorb the changing market.
Palmer said those implying misconduct on the trading floors are "100%
politically motivated. . . . These are folks who want to return California to
[power] regulation."
Still, some industry officials acknowledge that some additional oversight of
trading floors may be needed. Ackerman, of the power trading association,
said his members have asked federal regulators to consider an auditing
program to review trading activities.
"If people don't have confidence in trading floors," Ackerman said, "that's a
problem."
*
Times staff writer Miguel Bustillo contributed to this story.

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

World Stock Markets
Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
By Jesse Pesta
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
C11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Foreign companies are on a shopping spree in India's stock
market, buying up their own affiliates and hoping to take them private.
In recent weeks, companies ranging from Otis Elevator Co. and Carrier Corp.,
both of Farmington, Conn., to Hoganas AB of Sweden, a player in the global
iron-powder business, have made open offers for the shares of their Indian
units, sometimes at prices that suggest they consider themselves a bargain.
Boston chemicals maker Cabot Corp. offered 100 rupees ($2.13) a share for
Cabot India Ltd. at a time when it was trading around 55 rupees.
Royal Philips Holland has offered to buy the 17% of light-bulb maker Punjab
Anand Lamp Industries it doesn't already own, according to Punjab. Otis and
Carrier, which are units of United Technologies Corp., Hartford, Conn., have
offered to buy all shares outstanding of their Indian affiliates, Otis
Elevator Co. (India) Ltd. and Carrier Aircon Ltd. The price for Carrier
shares was a nearly 100% premium to the stock's price prior to the offer.
The buybacks have triggered a surge in the stocks of other companies with a
foreign pedigree. Companies including Rayban Sun Optics India Ltd. (a unit of
Bausch & Lomb Inc., Rochester, N.Y.) and Philips India Ltd. (a unit of Royal
Philips Holland) have seen share prices rise as much as 40% or more since the
mid-May offers for Otis and Carrier, which were two of the early ones in the
current wave.
Both Rayban and Philips India deny open offers are planned. In any case,
Philips already boosted ownership in its Philips India unit to 83% from 51%
late last year.
In contrast to the surging shares of multinationals since mid-May, the Bombay
Sensitive Index has risen only 1.56%. It closed yesterday at 3631.91, down
30.13.
The trend has several drivers. For one thing, Indian stocks remain battered
after a rash of big market scandals earlier this year. Meantime, taking a
company private means it no longer is required to share as much information
about its business either with the market or a local partner. "In tough times
it will safeguard your interest," says Jignesh Shah, strategist at Ask-RJ
Investment Management in Bombay.
But most significantly, India has slowly made it easier in recent years for
foreigners to invest. Indeed, the buyback trend contrasts with the feud
between Dabhol Power Co. and its customer, the Maharashtra State Electricity
Board, over unpaid electricity bills. Dabhol, which is 65%-owned by Houston's
Enron Corp., is India's largest foreign investment and an emblem of the
difficulties foreign companies have encountered through the years. But the
buyback trend "works against the story of negative foreign-investment
environment" in India, one analyst notes.
As a rule, the companies play down the importance of stock price. Hoganas's
buyback for instance reflects the company's global strategy, but reflects as
well on a liberalizing India: Everywhere else in the world Hoganas owns 100%
of its subsidiaries, even Japan and China, says Virendra Sud, managing
director. But India didn't allow full foreign ownership 15 years ago, when
the company came here, he says, or else "we would have done it then." It's
purely coincidental that the buyback comes just as the stock market "has sort
of hit rock bottom," he says.
Otis attributes its buyback partly to India's growing appetite for more
sophisticated elevators, which means transferring advanced designs here.
Technology transfer heightens the need for closer cooperation with the
parent, says Managing Director Ashok Malhotra. But the company's reason for
going public in the first place sheds light on the regulatory cycle playing
out today in India. In the 1970s, India went through a phase of requiring
foreign companies to be part locally owned, so Otis made the public offer
that it is trying to undo today. "You have to work under the rules of the
time," Mr. Malhotra says.
---
Yesterday's Market Activity
Nasdaq's losses overnight pressured markets throughout Asia as Tokyo blue
chips tumbled 1.7% and South Korea's benchmark index fell 2.6%. European
markets rebounded somewhat from the previous day's declines, though volume
was thin. Overall, the Dow Jones World Stock Index rose 0.10%, or 0.20, to
195.33. Excluding the U.S., the index fell 0.68%, or 0.96, to 141.08.
In TOKYO, the Nikkei Stock Average was down 1.7%, or 231.21 points, to
13262.14. Nomura Securities downgraded its ratings on Fujitsu, Toshiba and
NEC, causing a broad slump in technology shares. Fujitsu ended down 2.8% at
1,543 yen, NEC slumped 3.9% to 1,947 yen, and Toshiba fell 3.6% to 675 yen.
In HONG KONG, the Hang Seng Index ended down 1.8%, or 245.72 points, at
13174.41. China Mobile fell 2.8% or 1.1 Hong Kong dollars to close at
HK$37.80. Property concern Cheung Kong dropped 3.4% to HK$85 and Sun Hung Kai
finished down 2.4% at HK$72.75.
In LONDON, the FTSE 100 Index slipped 0.01%, or 0.8 points, to 5796.10.
Services company Rentokil Initial surged 12.9% to 215 pence after it said
sales from continuing businesses were up 7.1% and operating profit was up 9%
year on year. It also said it has bought back 120 million of its own shares
since March. Invensys closed 6% higher at 142 pence after posting results in
line with expectations. Retailer Boots ended 3.5% higher at 597 pence after
posting earnings results in line with expectations.
In PARIS, the CAC 40 Index closed up 0.2%, or 9.92 points, to 5454.19.
Alcatel closed up 2.4% to 29.95 euros following the release Wednesday of
weaker-than-expected results and the demise of merger talks with Lucent
Technologies. J.P. Morgan cut its earnings-per-share forecast for the
communications-equipment supplier. Deutsche Bank also expressed negative
sentiment about the company, saying an industry turnaround is unlikely before
the fourth quarter of 2001. Car maker Renault closed down 1.1% to 55.15
euros. Lehman Brothers cut its 2001 earnings forecast, citing exposure to
falling demand in U.S. and Europe.
--- MSCI Indexes

% FROM
May 30 May 29 12-00

U.S. ........... 1183.7 1201.5 -5.3
Britain ........ 1723.9 1744.4 -6.4
Canada ......... 1030.8 1049.4 -10.9
Japan .......... 828.4 844.2 +2.5
France ......... 1763.4 1794.3 -7.3
Germany ........ 755.2 767.4 -7.7
Hong Kong ...... 6844.0 6920.0 -11.0
Switzerland .... 939.5 946.6 -7.6
Australia ...... 700.3 702.9 +9.4
World Index .... 1120.6 1136.4 -8.2
EAFE MSCI-p .... 1325.6 1342.7 -11.2

As calculated by Morgan Stanley Capital International Perspective,
Geneva. Each index, calculated in local currencies, is based on the
close of 1969 equaling 100.

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

International
Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
By Bhushan Bahree
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
A11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

PARIS -- Exxon Mobil Corp. and the Royal Dutch/Shell Group appear poised to
win coveted leadership roles this weekend in a historic reopening of Saudi
Arabia's energy industry.
People familiar with developments said that barring last-minute upsets,
Exxon, the world's largest publicly owned oil company, will be named operator
of the largest opening being offered by the Saudis, the South Ghawar
natural-gas project that will require investment of $15 billion and is named
after the world's largest oil field, in the country's eastern province. But,
they cautioned, because Shell has been competing hotly for South Ghawar,
nothing can be taken for granted until the Saudis officially name the winners
and sign memorandums of understanding on Sunday.
As of late last night, Shell, the second largest company, was expected to win
the second prize: leadership of the Shaybah gas project, which requires
investment of $5 billion and is named after a recently developed oil field in
the kingdom's remote Empty Quarter, a southeastern desert region. Saudi
Arabia already has named Exxon leader of the third and last gas project
opened to foreign investment, the Red Sea project that requires investment of
as much as $5 billion.
Saudi Arabia's energy industry was nationalized in the 1970s, but over the
past two years has been reopened to foreign investment, prompting a fierce
contest among the world's largest oil companies. The people familiar with
developments cautioned that until the choices have been endorsed by an
11-member ministerial committee headed by Saudi foreign minister Prince Saud
al-Faisal, and given the final nod by Saudi Crown Prince Abdullah, they
couldn't be considered final.
The people said the ministerial committee met late yesterday ahead of a
formal signing ceremony planned for Sunday in Jeddah, the Saudi city on the
Red Sea coast. Such is the importance of getting into Saudi Arabia that the
chief executives of the eight companies chosen to participate in the gas
projects are flying to Jeddah to sign the memorandums, a prelude to
negotiations about fiscal and other terms. Final agreements aren't expected
until year's end at the earliest.
Officials of Exxon, Shell and the Saudi government declined to comment on the
choices made by the kingdom, which has the world's largest crude reserves and
is fifth in the natural-gas reserves after Russia, Iran, Qatar and the United
Arab Emirates. A leadership role -- or operatorship in industry parlance --
brings the opportunity to set the pace of the project and create local
networks that can prove valuable for future projects.
The kingdom still isn't allowing foreign companies into its crude-oil
business, which is run by the state-owned Saudi Aramco, but foreign oil
companies hope they eventually will be allowed into that sector, too. Indeed,
Aramco is expected to participate in the gas projects opened to foreigners,
with voting rights that have yet to be determined. The projects are
wide-ranging and encompass a long chain from exploration and production of
natural gas, to its transportation and use to generate electricity and in
water desalination plants.
Last month, Saudi Arabia named eight foreign companies, from a list of 11, to
take part in three consortiums for these projects. Besides Exxon and Shell,
they are BP PLC, TotalFinaElf SA, Conoco Inc., Phillips Petroleum Corp.,
Occidental Petroleum Corp. and Enron Corp. The three companies that sought
but failed to get a place are Chevron Corp., ENI SpA, and Marathon Oil Canada
Inc.
Industry officials say the competition was some of the fiercest ever. Said a
senior industry executive: "Everybody is looking 10 years down the road, and
the place to be is in Saudi Arabia."

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

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, Jun 1 Asia Pulse - A new package 'acceptable to all' is being
evolved to resolve the seven-month old wrangle between Enron promoted Dabhol
Power Company and the Maharashtra State Electricity Board (MSEB) over the
issue of cost of power and payment of bills, A V Gokak, the federal
government's representative in Maharashtra's negotiation committee said
today.
"Things are moving in the right direction and government is serious to
resolve the crisis," Gokak told PTI after a meeting with the Finance
Minister, Yashwant Sinha, here.
Gokak said none of the parties to the dispute are in favour of closure of the
$3 billion project.
Earlier, the Indian government had asked Central Electricity Authority (CEA)
to explore possibility of selling the DPC power to deficient states. But the
Power Minister, Suresh Prabhu, had ruled out possibility of National Thermal
Power Corporation (NTPC) lifting DPC power.
Prabhu had stated that the government would make all efforts to settle the
matter in consultation with the stake holders.
Asked if any time frame has been set to break the impasse, Gokak said "delay
is in nobody's interest, but there are no readymade solutions."
The negotiating committee, headed by Madhav Godbole, has held two rounds of
negotiations with the last round held earlier this week being termed
"positive" by both DPC and the MSEB.
Gokak is believed to have put forward alternative solutions in resolving the
crisis.
(PTI) MYB 01-06 2030

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

		GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001
By JOHN DIZARD

		The share price of one large electron-pushing company is up nearly 70 per
cent this year, but could be in line for another pop to the upside.
		That may sound like a report from Mary Meeker, the formerly omniscient
internet stock guru, or like your broker's stock-of-the-week pitch.
		Well, neither will be making such a claim at the moment - their legal
departments have them on too tight a leash. And the stock I have in mind is
not a technology stock in the sense of a silicon basher or programmer farm.
It is Edison International, the California electric power holding company,
whose Southern California Edison utility has been very publicly hovering at
the edge of bankruptcy for several months.
		The day after President George W. Bush made his "You're on your own,
California" speech, Edison's share price dropped more than 5 per cent. And
while the year-to-date rise, from Dollars 6.25 to Dollars 10.50 this week,
has been impressive, share-holders have seen a 46 per cent loss year on year.
		So why should anyone be optimistic about the chances for the common
shareholders in the holding company? Essentially because the state
legislators are being terrified into coming up with a bail-out plan - not
exactly the plan of Gray Davis, the governor of California, but one that will
preserve some value for the holding company shareholders and give them a more
predictable future.
		By now every one knows that the California utilities were squeezed by fixed
retail rates and rising wholesale costs. Edison has said it has Dollars 3.5bn
in "undercollected" wholesale power purchase costs. The state of California
(and its taxpayers) stepped in to buy power when the utilities ran out of
borrowing capacity in January. PG&E, the other big investor-owned utility,
filed for Chapter 11 protection back in April. Edison held off from filing,
preferring to try to get a state government bail-out.
		Much is missing from the standard account. For example, consumer groups
believe there is a lot of padding in the "undercollect", and that the holding
company should cough up billions in assets paid for with dividends supplied
by the SCE subsidiary. Many of the California public believe that the
merchant generators such as Duke Energy and Enron should pay back overcharges
rather than get any back bills paid.
		And yet the legislative tide is turning in Edison's favour. Within the next
couple of weeks, I expect the Democrats - who control both the state Assembly
and Senate - to come up with a bail-out plan for Edison that has a good
chance of passing both houses and being signed into law by the governor. The
reason is the the distinction they have begun to make between ratepayers and
taxpayers.
		To a legislator, tax payments, as distinct from utility rates, are things
that run through their hands and go to favoured programmes. Taking over the
payment of electric wholesale costs did not look too scary back in January,
when Governor Davis said it would go on for a few weeks and be easily covered
with the cash on hand. Well, the state has paid out nearly Dollars 8bn and
its cash reserves will be under increasing pressure until a Dollars
12bn-Dollars 13bn bond issue can be floated some time after August 15. A
decline in tax receipts is putting even greater stress on the state
government's resources.
		So the legislators want to get as far out of the power business as they can,
as fast as they can. That means saving Southern California Edison from
Chapter 11.
		The deal being negotiated within the Democratic leadership looks something
like this. The state will make a large loan, call it Dollars 1bn, against the
security of Edison's transmission system, to be repaid either through a sale
of the system to the state or a deduction from the allowed return on the
towers and wires. The holding company will pay out about Dollars 400m to prop
up the subsidiary. The rest of the undercollect will be paid for by a
"dedicated rate component", or charge to ratepayers - mostly commercial,
industrial and large users - that cannot be revoked by the Public Utility
Commission. The generators can get 70 cents on the dollar for their back
bills right away, or they can litigate forever.
		There are a few details that lawyers will quibble over, such as the
constitutionality of retroactively raising rates. And some may ask if it is
not cheaper just to let Edison go into Chapter 11, because even with the plan
it will not be able to take the state's place as a wholesale buyer at any
time soon. But I would bet on its passing anyway. And that would be good news
for Edison International shareholders, since they will have held on to most
of the holding company's assets, and still have an ongoing business in the
subsidiary.
		Don't bet the rent money on it, but it looks closer to me than a comeback in
spending on semiconductors. Maybe the children's college money - if you lose
it, they should work harder anyway.
		Copyright: The Financial Times Limited

		INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001
By ROBIN ALLEN and MATTHEW JONES

		ExxonMobil and Royal Dutch/Shell are the favourites to lead two of Saudi
Arabia's multi-billion dollar upstream gas projects to be opened to foreign
companies, according to industry observers in the Middle East.
		A committee of Saudi ministers responsible for the developments was due to
meet late last night. The companies are expected to learn the size of their
stakes either late today or early tomorrow, an official close to the projects
said.
		Saudi Arabia, which has excluded foreign companies in upstream operations
since 1975, last month announced the selection of eight oil groups to
participate in three gas projects requiring initial investment of around
Dollars 25bn.
		Exxon has already been appointed leader of Core Venture 2, on the Red Sea
coast, which also includes Occidental Petroleum and Enron Corp of the US. The
partners in Core Venture 3, the Shaybah development in the south-eastern
quarter of the kingdom, are Shell, TotalFinaElf of France and Conoco of the
US.
		Analysts and industry experts in Riyadh and Abu Dhabi said Exxon was expected
to be named leader of South Ghawar, also known as Core Venture 1, with a 35
per cent stake. BP and Shell would each be awarded 25 per cent shares while
Phillips would receive 15 per cent.
		Exxon was expected to be given a 70 per cent share of Core Venture 2, with
the remainder split equally between Occidental and Enron. Shell was tipped to
lead Core Venture 3 with 40 per cent of the project, while Total and Conoco
were expected to win 30 per cent each.
		One analyst said there was an outside chance that BP would be awarded
leadership of Core Venture 1 for political reasons.
		A BP official last night said the group had had no indication of the
decision, but added: "Even if we are not selected we will still have a very
significant part in a huge project. The important thing is to be there."
		Additional reporting by Robin Allen in Dubai
		Copyright: The Financial Times Limited

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, June 1 Asia Pulse - International ratings agency Fitch has changed
the Rating Outlook on India's sovereign ratings from Stable to Negative,
citing well-flagged concerns about fiscal policy, privatization and the
deterioration in the foreign investment climate.
Fitch currently rates the foreign and local currency obligations of India at
BB+ and BBB- respectively.
The negative rating outlook reflects the slow progress of the government in
implementing privatization and addressing the weaknesses in public finances.
The fiscal-monetary policy mix in India remains unfavorable, resulting in
relatively high real interest rates and crowding out of private sector
investment.
Until the authorities display a concerted willingness to address fiscal
imbalances, India will remain locked in a stop-go cycle of growth and the
sovereign could slip into a debt trap, Fitch said in a press statement.
The recent corruption scandal, involving the ruling Bhartiya Janata Party
(BJP)-led coalition government, threatens to exacerbate these trends and slow
economic reform.
India's general government fiscal deficit at over 9 per cent of GDP is among
the highest in the realm of rated sovereigns.
Persistently high fiscal deficits have led to a build-up of the general
government's debt burden, estimated to be over 60 per cent of GDP.
In addition, the government has guarantees outstanding amounting to 9 per
cent of GDP.
Fitch reiterates the point that such guarantees, issued to back mainly
infrastructure projects, are contingent liabilities of the government.
This has most recently been borne out in the case of Enron, where the US
power company has invoked a central government guarantee for payment arrears
accumulated by the Maharashtra State Electricity Board.
ASIA PULSE 01-06 1609

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

Thomas E. White becomes Secretary of the Army

06/01/2001
M2 Presswire
Copyright 2001 M2 Communications, Ltd. All Rights Reserved.

Thomas E. White became the 18th secretary of the Army today after being
nominated by President George W. Bush on May 1, 2001, and confirmed by the
Senate on May 24.
White expressed his gratitude to the president and the secretary of Defense
for their confidence and trust in him. During his confirmation hearing before
the Senate Armed Services Committee on May 10, White identified four
objectives he will pursue as secretary of the Army in support of the
president and the secretary of Defense: to invest in people, to assure
readiness, to transform the entire Army and to adopt sound business practices.
The secretary of the Army is the U.S. Army's senior civilian, responsible by
statute for all matters relating to Army manpower, personnel, reserve
affairs, installations, environmental issues, weapons systems and equipment
acquisition, communications and financial management. The secretary leads a
work force of some one million active duty, National Guard and Army Reserve
soldiers and 225,000 civilian employees. The department has an annual budget
of approximately 70 billion dollars.
Before his appointment as secretary of the Army, White was the vice chairman
of Enron Energy Services, the Enron corporation subsidiary responsible for
providing energy outsource solutions to commercial and industrial customers
throughout the United States.
White began his service to the nation in 1967, after graduating from the U.S.
Military Academy at West Point. His distinguished career as a commissioned
Army officer included two tours in Vietnam and service as commander, 1st
Squadron, 11th Armored Cavalry Regiment; commander, 11th Armored Cavalry
Regiment, V Corps; and executive assistant to the chairman, Joint Chiefs of
Staff. He retired from the Army in 1990 with the rank of brigadier general.
For additional information, see the Army web site at
http://www.dtic.mil/armylink or contact Army Public Affairs at (703)
697-7550.
((M2 Communications Ltd disclaims all liability for information provided
within M2 PressWIRE. Data prepared by named party/parties. Further
information on M2 PressWIRE can be obtained at http://www.presswire.net on
the world wide web. Inquiries to info@m2.com)).

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

Some light at last!

06/01/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

NEW Delhis intervention in the tussle between Enron and the Maharashtra
government is a welcome development. The government wants the Central
Electricity Authority to find out whether electricity generated by Dabhol
Power Company can be sold to states which need power badly if it cant be used
by Maharashtra.
This is a good idea India is seriously short of reliable, quality electricity
supply. Maharashtra claims that it doesnt need even the 740 MW now generated
by DPC at going rates. This creates further trouble: the lower Maharashtras
offtake, the higher the unit price of DPC power. Once other power hungry
states start buying up electricity from DPC, the price per kilowatt hour will
fall sharply.
The first step to getting DPC out of the hole that Enron, Maharashtra and
successive Indian governments have dug it into, is to allow the utility to
sell power to anyone who wants to purchase it at going rates. However, asking
central utilities like the fledgling Power Trading Corporation to evacuate
DPC power for sale outside Maharashtra wont solve the hassles of the sector
for all time.
The government should modify electricity laws to allow generating companies
to sell electricity to all users immediately. An ordinance passed by New
Delhi will do the trick power is a concurrent subject, with central
legislation overriding states.
But even if that happens, it is doubtful if there will be too many buyers for
Dabhol power at its present price about Rs 4 per unit with the plant running
at high capacities. If the price is to be brought down further, the deal with
MSEB will have to be renegotiated.
The Godbole Committee says that some financial restructuring, de-dollarising
of debt and equity, and so on can bring prices down by about 30 per cent from
DPCs minimum Rs 4 per unit rate today.
Otherwise, as the GC points out, it will be impossible for the project to be
viable at current tariffs. India desperately needs electricity to grow. For
the power sector to grow, reforms are necessary at every level
renegotiations, yes, but also changes in laws and the rules of the game.

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

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
By MICHAEL LIEDTKE
AP Business Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - State energy regulators say they are close to finishing
probes into whether electricity wholesalers illegally aggravated the state's
power squeeze.
In one year, California's power crisis has raised customer rates by $5.7
billion and dumped a $13 billion bailout bill on taxpayers. State officials
hope to recover the money if they find evidence that out-of-state wholesalers
manipulated the market to illegally driving up prices.
The wholesalers say they are being turned into scapegoats for a 1996
deregulation law sculpted by California lawmakers and the state's two largest
utilities, Pacific Gas and Electric and Southern California Edison.
The utilities have reported a combined $8.2 billion in losses since June
2000.
Two legislative committees are investigating allegations that wholesalers
created artificial supply shortages that drove wholesale electricity prices
as high as $1,900 per megawatt hour. Before June 2000, wholesale prices for
energy sold under similar terms rarely climbed above $150 per megawatt hour.
At least five lawsuits, including one filed by San Francisco City Attorney
Louise Renne, seek damages from wholesalers on behalf of all Californians.
"I don't think these are going to be very hard cases to make," said Owen
Clements, chief special litigator for San Francisco. "Even if they didn't
break the letter of the law, they clearly have violated the spirit of the
law."
Attorney General Bill Lockyer is offering multimillion-dollar rewards to
power plant workers and energy traders who provide the state with inside
information about wholesaler's decisions.
"Everyone feels like they're being ripped off. There's a lot of emotional
belief that unfair things have been done, but we're still working through the
case," said Lockyer, a Democrat who voted for the deregulation law when he
served in the state Senate.
The state utilities commission is inspecting power plant documents that may
show whether some facilities shut down unnecessarily to diminish supply. The
commission and Lockyer are investigating whether the plants then increased
production to reap big profits.
Power wholesalers maintain that the plants, many of which are 30 to 40 years
old, shut down for legitimate equipment repairs and maintenance.
"No one in our industry cuts back on production so a competitor can make more
money. It just doesn't happen, at least not on planet Earth," said Gary
Ackerman, executive director of the Western Power Trading Forum, a trade
group.
The Federal Energy Regulatory Commission earlier this year alleged that
Tulsa, Okla.-based Williams profited from the closure of two Southern
California power plants owned by a business partner, Arlington, Va.-based AES
Corp.
Without admitting wrongdoing, Williams refunded $8 million to settle the
charges.
California's investigations are examining the conduct of Williams, as well as
several other prominent power wholesalers, including Houston-based Enron
Corp., Dynegy Inc., and Reliant Energy, Charlotte, N.C.-based Duke Energy and
Atlanta-based Mirant Corp.
Cohen said the utilities commission could file a civil lawsuit against the
wholesalers by the end of June. Lockyer expects to wrap up an investigation
in late July at the earliest.
---
On The Net:
California Public Utilities Commission: http://www.cpuc.ca.gov
California Attorney General: http://www.caag.state.ca.us
http://www.enron.com
http://www.reliant.com
http://www.dynegy.com
http://www.duke-energy.com
http://www.williams.com
http://www.mirant.com

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

California Lawmakers Eye Billing Businesses for Edison Rescue
By Jason Leopold

05/31/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Dow Jones Newswires
LOS ANGELES -- California lawmakers are mulling yet another set of ideas for
rescuing embattled Southern California Edison, and this time businesses would
be on the hook.
In an attempt to deflect charges of a bailout that have thus far stymied
efforts to restore the utility to solvency, legislators are now considering
ways to shift the burden of financing the rescue from residential ratepayers
to the state's largest businesses, aides to key state lawmakers said this
week.
The ideas being worked over by Senate President Pro Tem John Burton, Assembly
Speaker Robert Hertzberg and Assemblyman Fred Keeley have yet to take shape
as formal proposals. But an aide to Burton said some key lawmakers are so
"desperate" to keep Edison International (EIX) utility Southern California
Edison from following PG&E Corp. (PCG) unit Pacific Gas & Electric into
bankruptcy court that they are willing to consider anything that will takse
residential consumers out of the equation.
"The idea is that the large industrial customers are the ones who pushed for
deregulation in the first place, so they should be responsible for bailing
out Edison," the aide said. "We're looking to take the burden off of
residential ratepayers."
The premise of a plan discussed by lawmakers on a conference call Thursday is
to designate Southern California Edison's largest commercial ratepayers as
non-core customers. Those customers -- some 3,600 users of more than 500
kilowatt-hours a month -- would be responsible for financing the cost of
power the utility must purchase or have purchased for it in the wholesale
market. The non-core customers would also help the utility recoup most of its
$5.5 billion in unrecovered power costs through a surcharge on their bills.
Core residential customers would be protected from the wholesale power market
as the primary beneficiaries of the low-cost power the utilities generate
themselves or have locked up in long-term contracts.
Enron Pushing Access to Customers
Separately, Enron Corp. (ENE) has been lobbying lawmakers for several weeks
to win approval to sign power-supply contracts with Southern California
Edison's largest commercial customers, leaving the utility to serve just its
residential customers and small businesses, aides to Gov. Gray Davis, Messrs.
Burton and Hertzberg said.
An Enron executive confirmed that the company sent a four-page proposal to
Mr. Hertzberg proposing that Southern California Edison's large industrial
customers sign so-called direct-access contracts with Enron. Enron also has
recently made a presentation about direct access to some members of the
California Chamber of Commerce.
Under the proposal, heavy users would be required to contract directly with
companies like Enron for their power.
Direct access was a key part of the state's 1996 deregulation plan, but was
scrapped early this year when the state started buying wholesale power in
place of the utilities.
The core/non-core proposal is one of several being discussed by lawmakers as
alternatives to a memorandum of understanding Mr. Davis struck with Edison in
April. The MOU -- which doesn't vary much from an agreement in principle
reached in February -- has been called dead on arrival by some lawmakers, who
have been mulling various alternatives rather than moving the agreement
forward.
State Sen. Debra Bowen, a Redondo Beach Democrat and chairwoman of the Senate
energy committee, said there are so many "Plan B's" floating around the
Legislature that, "We're going to need to hire an apiculturist."
Steve Maviglio, a spokesman for the governor, said the Davis administration
is still dedicated to seeing legislation to enact the memorandum of
understanding move through the Legislature, but said separating the utility's
"core and non-core" customers would be at the forefront of new discussions.
It was too early to say whether the governor would support the plan, he said.
Dominic DiMare, a lobbyist with the California Chamber of Commerce, said the
chamber has told the Davis administration that shifting the burden of the
Southern California Edison bailout to businesses is "a very bad idea" that
could cost the state billions of dollars in economic activity.
"This [plan] would really screw businesses," Mr. DiMare said. "We just got
hit with a 50 to 90% rate increase. We're dangerously close to losing our
businesses to other states."
Write to Jason Leopold at jason.leopold@dowjones.com
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved

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

Construction of power plant in DeSoto County is underway
By TIMOTHY R. BROWN
Associated Press Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

JACKSON, Miss. (AP) - A North Carolina-based independent electric power plant
developer and operator has started construction on a $490 million generating
facility in DeSoto County.
Cogentrix Energy Inc. will build the 800-megawatt power plant in Southaven on
40 acres next to existing TVA and Entergy electric substation facilities. The
plant is the largest economic development project in the history of the north
Mississippi county.
The second largest project is a $150 million power plant currently being
built by Duke Energy.
Both are expected to be operational in 2003.
The National Energy Production Corporation, a subsidiary of the Enron Corp.,
is serving as the engineering and construction contractor for the Congentrix
project.
"It is in construction as we speak," Jeff Freeman, Congentrix vice president
for corporate communications, said Thursday. "NEPCO is mobilized on site and
they are doing earth work. It will probably take them 24 to 27 months to get
the plant in commercial operation."
Freeman said the Charlotte, N.C., company found several reasons why building
a plant in Southaven, a fast-growing city located just south of Memphis,
Tenn., was a good investment.
"The first thing that we look for in any project is a basic need for the
commodity that we produce, which is electricity," Freeman said. "The area
served by the transmission systems, TVA and Entergy, at this location provide
access to areas that need electricity."
The plant will use natural gas as fuel and will include the latest in
environmental and combustion control technologies, Freeman said.
Cogentrix owns all or part of 27 facilities with a capacity to generate about
7,000 megawatts in 14 states.
Southaven Mayor Greg Davis said both plants will generate about $300,000 to
the city, in lieu of taxes, and about $1 million each to the county school
system.
Davis said the plants will not employ many workers so traffic in the area
will not increase. He also pointed to the positive impact of temporary jobs
during construction.
"Then, road and bridge tax that they will be paying is substantial also,"
Davis said. "So from a financial impact we will see a great return in the
investment."
---
On the Net:
Congentrix: http://www.congentrix.com
Duke Energy: http://www.duke-energy.com

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


have your lawyer call ours.  we probably need to test this position in
court.  we need to set a benchmark for others who may be in this position.


Ed:  Do you want legal to do anything at this point? Sara

 -----Original Message-----
From: 	Sacks, Edward
Sent:	Tuesday, October 09, 2001 1:33 PM
To:	'douglasp@coned.com'
Cc:	Wheeler, Rob; Shackleton, Sara
Subject:	Consolidated Edison Company of New York / Enron North America Corp - Proposed Credit Terms

Please review the following proposed outline of the credit lines for the proposed ISDA.

Collateral Threshold (tied to S&P and Moody ratings, lower of):

					ConEd		Enron
	A+/A1 and above		$75,000,000	$60,000,000
	A, A-, A2, or A3			$60,000,000	$55,000,000
	BBB+, BBB, Baa1 or Baa2	$25,000,000	$50,000,000
	BBB- or Baa3			$5,000,000	$15,000,000
	Below BBB- or Baa3		$0		$0

I am trying to set parameters which give ConEd the credit that it deserves as an A+ regulated utility and Enron the credit it warrants as a BBB+ energy marketer.  Given the different business profiles of our companies, I don't believe that the application of parity should be practiced with regards to setting credit lines.  I think you would agree to this approach when looking at other market players, such as banks, municipalities, etc.  I hope we can come to agreement on the proposed credit lines, so that we can proceed with the negotiations of the ISDA.  Please call or reply with any comments or questions.

Regards,

Ed Sacks
Enron Corp.
1400 Smith Street
Houston, Texas 77002
(713) 345-7712


Monument Derivatives GIVE UP to GS&Co.

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


_________________________________________________________________

                   I N V E S T I N G  B A S I C S
                     Wednesday, October 18, 2000

benjamin.rogers@enron.com
_________________________________________________________________

REGISTER TO BECOME A FOOL -- GET FREE STUFF!
http://www.fool.com/m.asp?i=159941
_________________________________________________________________

 Sponsored By: American Express
 American Express has "some of the deepest financial planning
 tools of all the online brokerages" -Gomez Advisors,
 Internet Broker Scorecard. Invest with a brand you know and
 trust!
 http://www.lnksrv.com/m.asp?i=159942

ASK THE FOOL

-- Q. I've just learned that Levi Strauss is a private company,
so I can't buy shares of it. What other major companies are
privately held?

-- A. Take a gander at these biggies: Cargill, Mars, Bertelsmann
AG, Bechtel, Publix Supermarkets, IKEA International, Amway,
Penske, S.C. Johnson & Sons, Montgomery Ward Holding Co.,
Packard Bell NEC, Enterprise Rent-A-Car, Hallmark Cards, Borden,
McCain Foods, Hyatt, Hechinger and Domino's Pizza. Some of these
firms offer shares to employees, but individual investors are
out of luck.

-- Q. I've noticed that stocks jump in price when they're added
to the S&P 500 Index. Why is this, and is there any way to learn
which companies will be added in the future?

-- A. You've noticed correctly. When it was announced recently
that America Online would be added to the S&P 500, its shares
quickly rose about 12 percent.

Stocks get added to these indexes to replace ones deemed no
longer worthy of being included, or ones that have merged with
other companies and therefore disappear. The announcements draw
the attention of investors, sending share prices up. And once
the companies are added, index funds that will have to own these
stocks begin snapping up shares.

Unfortunately, the stocks begin moving as soon as the
announcements are made, before they're even officially added. So
there's little time to sneak in and benefit. But if you've
invested in high-quality, growing companies, chances are you may
eventually see some of them added to important indexes.

Got some questions of your own for the Fool? Head to our Help
area or post your question on the Ask a Foolish Question
discussion board.
http://www.fool.com/m.asp?i=159943
http://www.fool.com/m.asp?i=159944

_________________________________________________________________

INVESTING BASICS - STOCK SPLITS

Wondering whether to buy a stock before or after a split is like
asking, "Should I eat this peanut-butter-and-jelly sandwich
before or after Mom cuts it in half?

Stocks don't become more inexpensive when they split. True, you
get more shares. But each is worth less. Imagine you own 100
shares of Sisyphus Transport Corp. (ticker: UPDWN). They're
trading at $60 each and total $6,000. When Sisyphus splits
2-for-1, you'll own 200 shares, worth about $30 each. Total
value: (drum roll, please) $6,000. Yawn.

Some people drool over stocks about to split, thinking the price
will surge. Stock prices sometimes do pop a little on news of
splits. But these are artificial moves, sustainable only if the
businesses grow to justify them. The real reason to smile at a
split announcement is because it signals that management is
bullish. They're not likely to split their stock if they expect
the price to go down.

Splits come in many varieties, such as 3-for-2 or 4-for-1.
There's even a "reverse split," when you end up with fewer
shares, with each worth more. Reverse splits are usually
employed by companies in trouble, to avoid looking like the
penny stocks they are. If a stock is trading at a
red-flag-raising $2 per share and it does a reverse 1-for-10
split, the price will rise to $20 and those who held 100 shares
will then own 10.

Companies often split their stock so that the price will remain
psychologically appealing. Sometimes, not splitting would mean
that few people could afford even a single share. If Microsoft
hadn't split seven times in the last decade, each share would be
worth more than $6,500.

With stocks, just as with any purchase, examine what you're
getting for the price. Study the company and compare the stock
price to other numbers, such as earnings. A low price might be
inviting, but a $200 stock can be much more of a bargain than a
$20 one. If your funds are limited, you can just buy fewer
shares.

It's always fun to suddenly own more shares, but splits are like
getting change for a dollar. They're not cause for celebration.
_________________________________________________________________

IN THE SPOTLIGHT

-- If you'd like to learn more about various indexes such as the
S&P 500 (and what companies are in them), pop over to our
collection of index resources.
http://www.fool.com/m.asp?i=159945

-- Do your friends and relatives (and us) a favor -- introduce
them to the Fool. If you take a little time to help someone you
care about get on the path toward financial independence, you'll
be giving them an enormous gift. Even if you leave Fool.com out
of it, do spend some time with people, talking finances. There
are few greater gifts you can give someone than a nudge toward
financial independence.
http://www.fool.com/m.asp?i=159946

-- If you've got knowledge to share, you could make a few
dollars for it at Soapbox.com. Consider dropping by Soapbox (a
Motley Fool company) to see what other authors are offering.
http://www.lnksrv.com/m.asp?i=159947
_________________________________________________________________

A NOTE FROM THE AUTHOR(

I hope you're finding this product useful. The content
originally appeared as part of our nationally syndicated
newspaper feature (which I also prepare). Consider giving your
local editor a jingle and suggesting that they think about
carrying the Fool.
http://www.fool.com/m.asp?i=159948

Selena Maranjian
http://www.fool.com/m.asp?i=159949

_________________________________________________________________

My Portfolio: http://www.fool.com/m.asp?i=159950
My Discussion Boards: http://www.fool.com/m.asp?i=159951
My Fool: http://www.fool.com/m.asp?i=159952
Fool.com Home: http://www.fool.com/m.asp?i=159953
My E-Mail Settings: http://www.fool.com/m.asp?i=159954

 Sponsored By: American Express
 American Express has "some of the deepest financial planning
 tools of all the online brokerages" -Gomez Advisors,
 Internet Broker Scorecard. Invest with a brand you know and
 trust!
 http://www.lnksrv.com/m.asp?i=159955

THE SECRET TO A COMFORTABLE RETIREMENT...
 ...is smart planning. Start now with the Motley Fool's
 Roadmap to Retirement online seminar.
http://www.fool.com/m.asp?i=159956

BECOME A FOOL!
 Get a FREE Investing Guide and more...
http://www.fool.com/m.asp?i=159957

FOOL DIRECT E-MAIL SERVICES
 Need to change your address or unsubscribe? You
 can also temporarily suspend mail delivery. Click here:
http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers
@enron.com

 Have ideas about how we can improve the Fool Direct or new
 e-mail products you'd like to see? Try our discussion board:
http://www.fool.com/m.asp?i=159958
____________________________________________________
(c) Copyright 2000, The Motley Fool. All rights reserved. This
material is for personal use only. Republication and
redissemination, including posting to news groups, is expressly
prohibited without the prior written consent of The Motley Fool.

MsgId: msg-18262-B10182547Address.msg-20:34:10(10-18-2000)
X-Version: mailer-sender-master,v 1.84
X-Version: mailer-sender-daemon,v 1.84
Message-Recipient: benjamin.rogers@enron.com


---------------------- Forwarded by Peter Keohane/CAL/ECT on 09/18/2000 08:33
AM ---------------------------

Soma Ghosh
09/18/2000 03:06 AM
To: Peter Keohane/CAL/ECT@ECT, Jonathan McKay/CAL/ECT@ECT, Cris
Sherman/HOU/ECT@ECT, Derek Davies/CAL/ECT@ECT, William S
Bradford/HOU/ECT@ECT, John Griffith/Corp/Enron@Enron, "Ellison, Mike"
<Mike.Ellison@rbcds.com>, "McArthur, Ian" <IAN.MCARTHUR@ROYALBANK.COM>,
"Fleming, Blair" <BLAIR.FLEMING@ROYALBANK.COM>
cc: Brian Kerrigan/HOU/ECT@ECT, Catherine Clark/HOU/ECT@ECT
Subject: Alberta Pre-pay

All,

Please find attached the revised structure for the Alberta pre-pay.

The diagrams are accompanied by narrative & should provide some clarity.

Please note that the numbers used are not actual proposed prices/volumes &
have just been used for the purpose of illustrating the structure.

Regards,

Soma


---------------------- Forwarded by Keith Miceli/Corp/Enron on 06/05/2000
12:43 PM ---------------------------

Keith Miceli
06/05/2000 09:52 AM
To: Diomedes Christodoulou/SA/Enron@Enron, J Mark Metts/NA/Enron@Enron@ECT,
Mark Palmer/Corp/Enron@ENRON
cc:

Subject: Communication Plan Preparatons

Gentlemen:  The California Project is now moving from phase I into phases II
with respect to commuication/PR activities:

Phase I--No major leak/"no comment policy".  The only communications
responses (ESA Employee Memo, Employee Q&As for Elektro and Cuiaba, and
Q&Asfor vaious stakeholders) required to date were prompted by the TV (Bom
Dia) news story and Gazeta Mercantil article.

Phase II--Major leak requiring disclosure.  While prospective buyers have
signed CAs, there's always the possibility that news of the Project and/or
elements from the IM could be leaked--either inadvertently or by design.
While this scenario is unlikely, we need to be prepared to respond before
there is an actual sale of assets.  A draft press release has been prepared
for Ken Lay, confirming that Enron is considering the sale of its assets in
South America.  There is also a set of generic Q&As, which is being expanded
to include stakeholder-specific Q&As.  The ESA Employee Memo (May 8) is also
being modified.

Phase III--With the IM out, CAs signed and data rooms open, we should begin
to implement parts of the Communication Rollout Plan to demonstrate the
strength/success of the business strategy, limit speculation and provide
greater sense of certainty to important stakeholders.  The activities that we
can undertake now, include:

? Contact lists--Develop comprehensive contact lists of all
audiences/stakeholders.  Include names, addresses, phone, fax,, and email.
Put into Excel format.  Identify who internally "owns" each list.

? Speaking platforms--Develop list of speaking opportunities to introduce
Enron's business model and announce our regional strategy.

? Audience communications map*Develop a matrix that details the specific
communications strategy for key stakeholder audiences.  It should cover:
? *Timing: when should this audience be communicated with, e.g., before
public announcement, simultaneous with public, etc.
? *Form: what form should the communication take, e.g., written,
face-to-face, e-mail, conference call, employee meetings, etc.
? *Content: what is the message to be delivered
? *Responsibility:who,s responsible for creating communication; who within
company will deliver communication

? Communications training/message delivery preparation -- Key company
spokespeople need to be prepared to delivery the strategic messages regarding
transactions, but also to deftly handle difficult questions from employees,
analysts, customers and the media regarding the company's ultimate plans for
the region.  It will be essential that all spokespeople are delivering the
same message and are well prepared for difficult situations.

? Fact sheets on individual assets ) The information can be pulled from the
IM.  Developing fact sheets on each asset will enable them to be packaged in
any combination-- depending on the ultimate transaction.

? Vision piece*The existing white paper on company strategy would be revised
to  explain the rationale behind the strategy, future expectations for the
region, and intentions regarding employees and customers.

? Press kit shell:
*Press release ) can be drafted with blanks for key details
*Fact sheet on deal (template) ) assets involved; background on buyer/seller;
costs and sales terms; employees; customer base; revenue
*Asset fact sheets (see above)
*Vision (see above)
*Information buyer
*Information on Enron/ESA

? Q&A ) There are certain questions that will need to be answered regardless
of the situation; a master set of Q&A can be developed and then be broken up
and used as needed depending upon situation and audience.

Employee Issues
What happens to employees?
Will employees lose their jobs?  If so, how many?
What if I don,t want to work under the new owner?
What role will Jim and Diomedes play following sale?

Customer & Business Partner Issues
How will customers be affected by transaction?
How will ESA business partners be affected?
Do business partners have any say in whether transaction should go forward?

Approval Process
Who has to approve the sale?
What is the regulatory/approval process?  How long will this take?

Enron and ESA Strategy
What happens to ESA?
What business will you be in, in South America?
Will Enron repeat this process in other parts of the world?
What happens if not all of ESA assets are sold?

Financial Implications
What is the total anticipated price for all of the assets?
How much of company,s holdings does this represent?
What is the impact on shareholders?
How will the money be reinvested?

I would appreciate feedback on the proposed workplan, so I can make the
appropriate changes and begin completing the above tasks.  Diomedes, I know
that you and Mark are super busy, but I,m available to meet with you at your
convenience.  It would also be extremely valuable for me to reinitiate the TA
support from Sue Garman.  I,ve kept her posted on developments, so she,s
prepared to &hit the ground running.8   Lastly, Mark, with so many of the
rollout activities involving HQ, I would like a chance to discuss how to
organize a team effort to accomplish the many and varied activities.

Regards, Keith


Start Date: 4/27/01; HourAhead hour: 8;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042708.txt


I have added the comments from Mike and Orjan plus the volumes traded graph
supplied by Orjan (thank you!).

Please review and make any final comments and return to me by early next week
as we need to get this to Beth's team for distribution.

Thank you for all of your assistance on this!   Cindy


Joel,

Mary Lynn Ruffner has been involved, but to my knowledge has not reviewed the
documents.  Matt Gockerman handles most of the tax stuff for enovate.

As for the structure, the commercial focus is on keeping things as simple as
possible.

If Sarah doesn't have a copy of the LLC agreement, I can get you one.

Lou Stoler was involved in the formation of enovate, although I coordinate
most of their legal issues now.

I've seem a preliminary DASH, but I don't know where it sits now.

Hope this helps.

Kay

From: Joel Ephross on 11/06/2000 11:22 AM
To: Kay Mann/Corp/Enron@Enron, Sarah Wesner/Corp/Enron@Enron
cc:

Subject: Enovate

i faxed comments on the CA and note to Heather at Bracewell earlier today.
Would like to see copies of the LLC Agreement and the propsed guaranty.

Who from tax and accounting is reviewing this deal?

Is there a reason for member guaranties rather than equity funding agreements
or note purchase agreements or any other structure?

Is a DASH/GASH prepared?

Who in legal handled the formation of the Enovate entity? [just in case I had
questions about structure, etc.]


Although I haven't seen this yet, I agree, this sounds like something we want
to support.  Alan would you unzip for me?

	Enron Capital & Trade Resources Corp.

	From:  "Ronald Carroll" <rcarroll@bracepatt.com>
02/09/2001 10:44 AM

To: "Andrea Settanni" <asettanni@bracepatt.com>, "Jeffrey Watkiss"
<dwatkiss@bracepatt.com>, "Nancy Pickover" <npickover@bracepatt.com>,
<jhartso@enron.com>, <mary.hain@enron.com>, <smara@enron.com>
cc:
Subject: Fwd: Mirant Delta, LLC, et al. v. Cal ISO, EL01-35

Sue/Mary:  I have not seen the complaint, but it sounds like something that
we may want to support.

Nancy:  Please get a copy of the complaint for me and fax copy to Sue and
Mary.  Thanks.

Date: Fri, 09 Feb 2001 11:57:47 -0600
From: "Tracey Bradley" <tbradley@bracepatt.com>
To: "Paul Fox" <pfox@bracepatt.com>
Cc: "Andrea Settanni" <asettanni@bracepatt.com>, "Jeffrey Watkiss"
<dwatkiss@bracepatt.com>, "Nancy Pickover" <npickover@bracepatt.com>, "Ronald
Carroll" <rcarroll@bracepatt.com>
Subject: Mirant Delta, LLC, et al. v. Cal ISO, EL01-35
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_4219F1AE.E485EA5C"

On Feb. 6, 2001, Mirant Delta, LLC and Mirant Potrero, LLC filed a complaint
against the Cal ISO in Docket No. EL01-35-000, which has been attached.  In
the complaint, Mirant alleges that the ISO is violating the Federal Power Act
and prior FERC orders through (1) waiving the applicable credit requirements
for the IOUs prior to FERC approval (particularly in light of the ISO's
inability to pay suppliers for energy provided); (2) failing to pursue all
available remedies against defaulting parties; and (3) seating a
non-independent governance board.

The relief sought by Mirant is as follows:  (1) that it be required to sell
wholesale power only on commercially reasonable terms that provide for
adequate assurances of payment; (2) that FERC order the ISO not to change its
rates unilaterally in violation of the Filed Rate Doctrine; and (3) that FERC
require the ISO adhere to the specific provisions of its tariff and FERC
orders.

Mirant has requested fast track processing for this complaint.  It appears
that FERC is granting this request; FERC noticed the complaint on Feb. 8, and
established Feb. 26 as the due date for interventions/protests and answers.

 - mirant.tiff.zip


Patrice:
I hate to ask people but would you mind doing a review for me?
Thanks,
Mark


Thomas, if you have any questions, please call me at ext. 54858.

Thanks,

"Z"


------------------------------------------------------------------------------------------------------
W E E K E N D   S Y S T E M S   A V A I L A B I L I T Y

F O R

June 1, 2001 5:00pm through June 4, 2001 12:00am
------------------------------------------------------------------------------------------------------

ECS to ECN Network Interconnection, June 9th 2001

This is a notification that the Enron Corp. I/T Networks team will be connecting the new building network infrastructure located in Enron Center South (ECS) to the existing Enron Center North (ECN) backbone network.  While this activity is not expected to produce a disruption to network services, this notice is designed to alert the organization to our activities.  No network hardware or systems are anticipated to be shutdown.  The actual physical interconnection of the networks will be performed in the EB 34th floor Data Center.

Interconnection activities are scheduled to occur the evening of June 9th 2001 starting from 7:00 p.m.(CT) and completing around 11:00 p.m. (CT). Application testing activities will begin at 11:00 p.m. (CT) once all network testing has completed.

If you have any further questions, please contact Pete Castrejana at 713-410-0642 for more information.

SCHEDULED SYSTEM OUTAGES:

ARDMORE DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.

AZURIX: No Scheduled Outages.

EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.

EDI SERVER: No Scheduled Outages.

ENRON CENTER SOUTH DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages

ENRON NORTH AMERICAN LANS:
Impact:  ENS
Time:  Fri 6/1/2001 at  11:00:00 PM CT thru Fri 6/1/2001 at  11:45:00 PM CT
	Fri 6/1/2001 at    9:00:00 PM PT thru Fri 6/1/2001 at     9:45:00 PM PT
	Sat 6/2/2001 at  5:00:00 AM London thru Sat 6/2/2001 at  5:45:00 AM London
Outage:  Enable routing on new router ecn-34-cor-ccr1
Environments Impacted:  ENS
Purpose: This router will be used to connect to the new building
Backout: remove routing on the router.
Contact(s): 	Scott Shishido    713-853-9780

Impact:  AEP
Time:  Fri 6/1/2001 at  8:00:00 PM CT thru Fri 6/1/2001 at  8:30:00 PM CT
	Fri 6/1/2001 at  6:00:00 PM PT thru Fri 6/1/2001 at  6:30:00 PM PT
	Sat 6/2/2001 at  2:00:00 AM London thru Sat 6/2/2001 at  2:30:00 AM London
Outage:  Shutting off the internal link to 1201 Louisiana
Environments Impacted:  AEP
Purpose: Company occupying that space has been sold.
Backout: None
Contact(s): 	Garhett Clark         713-345-9953
                        Robert Humlicek   713-853-6366   713-406-8293

Impact:  ENS/GCO
Time:  Fri 6/1/2001    thru Wed 7/4/2001
Outage:  HPL migration to AEP
Environments Impacted:  GCO
Purpose: Sites sold
Backout: None
Contact(s): 	Garhett Clark         713-345-9953
		Robert Humlicek   713-853-6366   713-406-8293

FIELD SERVICES:  No Scheduled Outages.

INTERNET:
Impact:  Internet
Time:  Fri 6/1/2001 at  10:30:00 PM CT thru Fri 6/1/2001 at  10:45:00 PM CT
	Fri 6/1/2001 at    8:30:00 PM PT thru Fri 6/1/2001 at     8:45:00 PM PT
	Sat 6/2/2001 at  4:30:00 AM London thru Sat 6/2/2001 at  4:45:00 AM London
Outage:  Reboot Enron.com edge routers
Environments Impacted:  Internet
Purpose: Regular reboot to prevent such problems as memory corruption. Intermettent disruption to last about five minutes.
Backout:
Contact(s): 	John Shupak          713-853-7943
		Bryan Aubuchon    713-345-8446

MESSAGING:
Impact:  Corp Notes
Time:  Fri 6/1/2001 at  9:00:00 PM CT thru Sat 6/2/2001 at  1:00:00 AM CT
	Fri 6/1/2001 at  7:00:00 PM PT thru Fri 6/1/2001 at 11:00:00 PM PT
	Sat 6/2/2001 at  3:00:00 AM London thru Sat 6/2/2001 at  7:00:00 AM London
Outage:  cNotes Server Reboots
Environments Impacted:  All users on any of the mailservers listed below
Purpose: Scheduled @ 2 week interval
Backout: Make sure server comes up.
Contact(s): 	Trey Rhodes  (713) 345-7792

Impact:  EI
Time:  Fri 6/1/2001 at  9:00:00 PM CT thru Sat 6/2/2001 at  1:00:00 AM CT
	Fri 6/1/2001 at  7:00:00 PM PT thru Fri 6/1/2001 at 11:00:00 PM PT
	Sat 6/2/2001 at  3:00:00 AM London thru Sat 6/2/2001 at  7:00:00 AM London
Outage:  EI Notes Server Maintenance
Environments Impacted:  EI Local/Domestic/Foreign Sites
Purpose: Scheduled @ 2 week interval
Backout: N/A
Contact(s): 	David Ricafrente    713-646-7741

MARKET DATA: No Scheduled Outages.

NT: No Scheduled Outages.

OS/2:  No Scheduled Outages.

OTHER SYSTEMS: No Scheduled Outages.

SITARA:  No Scheduled Outages.

SUN/OSS SYSTEM: No Scheduled Outages.

TELEPHONY: No Scheduled Outages

TERMINAL SERVER:  No Scheduled Outages.

UNIFY:  No Scheduled Outages.

-------------------------------------------------------------------------------------------------------------------------------------
								FOR ASSISTANCE

(713) 853-1411   Enron Resolution Center

Specific Help:
Information Risk Management			(713) 853-5536
SAP/ISC                                                                               (713) 345-4727
Unify On-Call 					(713) 284-3757  [Pager]
Sitara On-Call					(713) 288-0101  [Pager]
RUS/GOPS/GeoTools/APRS			(713) 639-9726  [Pager]
OSS/UA4/TARP				(713) 285-3165  [Pager]
CPR						(713) 284-4175  [Pager]
EDI Support 					(713) 327-3893  [Pager]
EES Help Desk					(713)853-9797 OR (888)853-9797
TDS -Trader Decision Support On-Call                    (713) 327-6032 [Pager]


Attached please find the blacklined version of the Project 20/20 purchase and
sale agreement showing changes from the draft circulated last week.  This
version was given to Norther Border yesterday.  I need any comments you may
have as soon as possible.

Shonnie
----- Forwarded by Shonnie Daniel/HOU/ECT on 08/21/2000 09:55 AM -----

	"HAL HALTOM" <HALTH@andrews-kurth.com>
	08/21/2000 08:10 AM

		 To: <gerald.nemec@enron.com>, <Shonnie.Daniel@enron.com>
		 cc:
		 Subject: Blacklined Purchase and Sale Agreement

Attached is a blacklined copy of the draft of the Purchase and Sale Agreement
that was distributed yesterday.  Hal.

 - BL ENA PSA.doc


Rick:

See the attached letter and the spreadsheet (created by Joe) for these volumes. I'm going to have Theresa Vos create a PPEP invoice for this amount.

I need additional contact info from Ken and left him a message. Edit or laugh at will.

Maz


file is saved to o:/_dropbox/finanical transprt 1220
PL


thanks for showing up to the party on sunday.  your new name backout
ballases!


Good morning Ladies!
This deal has two different terms entered.  One says 12/1/00-12/31/00 (in
which case, it needs to be changed to "yes/agreement" and the other says
12/1/00-12/1/00 (in which case, we don't confirm).
Please let me know.
Thanks!  Glad to have you with us Kate!!!
Kim


---------------------- Forwarded by Juan Hernandez/Corp/Enron on 12/15/2000
10:47 AM ---------------------------

Don Baughman@ECT
11/21/2000 10:30 AM
To: Richard Hrabal/HOU/ECT@ect, Kayne Coulter/HOU/ECT@ECT, John
Kinser/HOU/ECT@ECT, Patrick Hanse/HOU/ECT@ECT, Rudy Acevedo/HOU/ECT@ECT,
Gerald Gilbert/HOU/ECT@ECT, Cyril Price/HOU/ECT@ECT, Jay
Wills/Corp/Enron@ENRON, Wayne Herndon/Corp/Enron@ENRON, Larry
Jester/Corp/Enron@ENRON, Jeff King/Corp/Enron@Enron, Juan
Hernandez/Corp/Enron@ENRON, Joe Errigo/Corp/Enron@Enron, Lawrence
Clayton/Corp/Enron@Enron, Dean Laurent/HOU/ECT@ECT, Keller
Mayeaux/Corp/Enron@Enron, Doug Miller/Corp/Enron@Enron, Chad
Starnes/Corp/Enron@Enron, Joe Stepenovitch/Corp/Enron@Enron, Greg
Trefz/Corp/Enron@ENRON, Lisa Burnett/Corp/Enron@Enron, Jason
Choate/Corp/Enron@ENRON, Larry F Campbell/NA/Enron@Enron
cc:

Subject: Fw: Why Palestinians throw rocks!

 - AHMED.mpg


PLEASE READ THIS IMPORTANT INFORMATION CONCERNING THE ENRON STOCK FUND IN THE ENRON CORP. SAVINGS AND ESOP PLANS

On Friday, January 11, trading of Enron stock was suspended on the New York Stock Exchange (NYSE).  All Savings and ESOP Plan transactions, including 401(k) payroll contributions,  involving this fund were placed in a pending status until trading resumed.

As announced by Enron's Office of the Chair on Wednesday, January 16, Enron stock would now be traded Over The Counter (OTC).  Upon receiving this information, work began immediately to develop a process that allows for OTC trades in the plans.

On Thursday, January 17, Enron initiated a process to facilitate OTC trades of Enron stock inside the 401(k) and ESOP and all pending transactions were processed using Thursday's closing price.

Now that trading has resumed, we urge you to review your investment elections to ensure that they are consistent with your investment goals.

As things change, we will continue to update you.

Enron Benefits Department


<! >
<! >
<! ATTENTION!>
<! You are reading this message because your mail reader cannot display HTML.>
<! If you would prefer to receive text messages from now on,>
<! click the link below or copy it into a web browser.>
<!
http://208.50.155.100/ClickAction?func=S_TurnOffHtml&partname=columbiahouse_music&uid=84715283
>
<! >

<title></title>

11.23.01

	Dear Paul,

Skip the stress of Holiday shopping -- it´s easy to make them holly and
jolly with ColumbiaHouse.com Gift Certificates. Plus, you can already
pick up Angie Stone´s just out new set!

	Unlimited 60% off...No full-price purchase necessary! (plus shipping and handling)

	(plus shipping & handling) details

expires: 12/4/01

Start Shopping

<form method="get" action="http://www.columbiahouse.com/soft?">

<input type="hidden" name="memid" value="kv73eg9nam9z4x5e4gjm">

<input type="hidden" name="olc" value="8eac91mbj7">

<input type="hidden" name="tk" value="9471">

		<select name="searchtype">

		<option value="ARTIST">Artist</option>

		<option value="ALBUM">Album</option>

		<option value="MUSIC_PULL_NO">selection#</option>

		</select>

		<input type="text" size="10" name="searchfor">

		<input type="image" src="http://images.columbiahouse.com/ch/images/se2/email/go_button.gif" border="0">

 Alternative

 Classical

 Christian

 Country

 Dance

 Gospel

 Hard/Metal

 Jazz/Blues

 Latin

 Light & Easy

 New Age/World

 R&B

 Rap

 Rock

 Soft Rock/Pop

 Soundtracks

 Holiday

 Bestsellers

 Bargain Titles

 Web Extras

 50 Music Milestones

 Deluxe Box Sets

 Greatest Hits

</form>

		Give Them The Gift Of Music!
ColumbiaHouse.com Gift Certificates

		details

			Don´t know what to get 'em this holiday? Let them click for their own
perfect present with our brand new Gift Certificates! Not only can your
family and friends order the latest and greatest music, they can take
their pick from thousands of the hottest DVDs and videos around. It´s shopping made simple!

			Go Shopping!

		Angie Stone´s latest "Mahogany Soul" featuring the hit
Brotha.
Angie Stone "Mahogany Soul"

		details

			JUST RELEASED -- and we´ve already got it! The retro-soul star is
back and she´s givin' it up for good guys everywhere with Brotha
and the bonus remix, Brotha (Part II) featuring Alicia
Keys and Eve. "Soul" also sways to the beat of the O´Jays-sampled Wish I Didn´t Miss You and the Musiq Soulchild duet The Ingredients Of Love.

			Go Shopping!

		The Holiday Gift Center

		Skip the long lines and crowded parking lots -- it´s a snap to wrap up
your Holiday shopping at our Gift Center! Here´s just a few of the great
gifts you´ll find:

				Stevie Wonder

At The Close Of A Century

				Save 34%! 70 wonderful songs -- from Superstition and You Are
The Sunshine Of My Life to Living For The City and My
Cherie Amour -- plus a great 96-page color booklet.

				Various Artists

Pop Music: The Modern Era

				A 2 CD set -- just $2.99! Features 38 monster hits from Lauryn
Hill, Billy Joel, Aerosmith, Bruce Springsteen,
Herbie Hancock, Michael Jackson and many more.

				Enya

Paint The Sky With Stars

				The red-hot singer collects 16 of her very best Celtic-spiced stunners,
including Orinoco Flow, Marble Halls, Caribbean
Blue, Shepherd Moons, Watermark and 2 exclusive cuts.

				Linkin Park

Hybrid Theory

				One of the year´s biggest breakouts! Bizkit-sized riffs and heavy
grooves collide on the new hit In The End, One Step Closer
and Crawling.

			Start Shopping Now!

Gladiator, The Matrix, Meet the Parents, Charlie´s Angels, Pay It
Forward and many more! Get 4 DVDs for 49 cents each (plus shipping &
handling)! Click here to join our DVD Club.

From Holiday gifts to up-to-the-minute hits, you´ll find it all at
ColumbiaHouse.com -- stop by now!

Thanks,

	This Columbia House Special Offers Mail is an exclusive service for Club members. If you wish to unsubscribe to this email, click here to update your email preferences or reply to this message with "unsubscribe" in the subject line. You are subscribed as plucci@enron.com.

To ensure that the "unsubscribe process" has been completed successfully please allow 2 weeks. We do apologize for any interim emails that are received while we are updating our records.

Thank you for shopping at ColumbiaHouse.com.

Copyright © 2001 ColumbiaHouse.com All rights reserved.

kv73eg9nam9z4x5e4gjm


Dad,

Attached is Brett's baseball schedule.  I will send Colton's schedule to you
later.   Also,
I deposited the Farm money into the Wells Fargo account over the weekend.

Scott


Please note that my new e-mail address, effective February 1, 2002, will be     Bob.Burleson@Dynegy.com

Thanks, Bob


Looks good to me.  Please make sure Holly puts it on the group calendar.

	Stephanie Panus@ENRON
	02/22/2001 09:01 AM

		 To: Brent Hendry/NA/Enron@Enron, Sara Shackleton/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT,
Mary Cook/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Robert
Bruce/NA/Enron@Enron, Tana Jones/HOU/ECT@ECT, Francisco Pinto
Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cheryl Nelson/NA/Enron@Enron,
Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Anne C Koehler/HOU/ECT@ECT,
Angela Davis/NA/Enron@Enron, Holly Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: Vacation

I would like to take off next Friday, March 2, if no one has a conflict.

Thanks,
Stephanie


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  , 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Please notice that distillate and unleaded options have been added.

Option Candlesticks
http://www.carrfut.com/research/Energy1/candlesticks50.pdf

Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606  USA
Tel:  312-368-6149
Fax:  312-368-2281
soblander@carrfut.com
http://www.carrfut.com


FYI
----- Forwarded by Mark E Haedicke/HOU/ECT on 05/14/2001 10:03 AM -----

	Mark E Haedicke
	05/11/2001 05:46 PM

		 To: Vicki Sharp/HOU/EES
		 cc:
		 Subject: Plan to Rebuild the Business

Here are my thoughts so far:

1.  Initial Legal Team -- Jeff Hodge, Jim Keller, Carol St. Clair, Aaron
Rothwarg

2.  Spot Check the Forms -- over the next week

3.  Conform Forms to ENA Forms -- over next two months

4.  Develop Form Approval Process -- dual approvals by EES and ENA

5.  Develop Deal Approval Process -- deals above a certain size (or material
variations from the form) would require concurrent EWS approval

6.  Request List of Major Contract Concerns from Traders -- items that cannot
be hedged


______________________________________________________
Get Your Private, Free Email at http://www.hotmail.com
 - comics.htm


I had to flee to Houston.

cd


Last week I reported to our Board of Directors that our highest priority
objectives for 2000
are to continue to substantially improve our safety and environmental record
throughout this
year.  These objectives supersede any and all of our financial objective for
2000.
EOTT 2000 Objectives:
Environmental - Reduce reportable spills and leaks by 50%
Safety - Reduce lost time accidents by 30%

I am pleased to report that our Regional Business Managers, District Managers
and their
teams are working closely with Operations Governance to ensure that those
objectives are met.

Please take time to read the following article:

	When pipelines are time bombs
	2 million miles of them deliver potential catastrophe every day

By Patrick McMahon, USA TODAY(Front Page Article 3/14/00
	BELLINGHAM, Wash. - Last summer, an underground pipeline ruptured in a city
park here and sent a torrent of gasoline along a wooded streambed toward two
10-year-olds playing with a barbecue lighter.

After the 16-inch pipeline had been hemorrhaging for an hour and 34 minutes,
an explosion sent a fireball racing through the park. A plume of smoke rose
30,000 feet.

Authorities say the blast probably was triggered by a spark from the lighter.

"There was a spark and the sky turned orange, the boys both told me
afterward," says Frank King, whose son, Wade, was one of the boys in the
park. Wade and his friend, Stephen Tsiorvas, were burned over 90% of their
bodies. They died the next day.

Also killed was 18-year-old Liam Wood, who had graduated from high school
five days before. The college-bound Wood was fly-fishing in the park when he
was overcome by fumes, fell into the creek and drowned.

"To many people, the boys were considered heroes," says Mark Asmundson, the
mayor of this seaside city north of Seattle. In sparking the explosion, the
boys kept the most extensive damage confined to the 241-acre park, he says.
"The river of gasoline was heading right for the center of the city."

On Monday, the Senate Commerce Committee held a one-day hearing here, about
five minutes from where the incident occurred, on legislation to improve
safety and government oversight of pipelines and the companies that operate
them. The hearing included gripping, sometimes tearful, testimony from the
boys' parents as well as statements from state and federal officials.

"My baby died because of inaction. His death was preventable," said Katherine
Dalen, Stephen's mother.

More than 2 million miles of iron, steel and plastic pipes - some as large as
5 feet in diameter - snake beneath the earth and deliver oil, gasoline,
natural gas and potential disaster across America every day. They range from
the trans-Alaskan pipeline to tiny pipes carrying natural gas to people's
homes. Safer than gasoline trucks or ocean-going tankers by most measures,
once-remote pipelines are prompting new worries as sprawling metropolitan
areas grow into their paths.

U.S. pipeline accidents have fluctuated in the past 10 years. In the 1990s,
there were 3,917 liquid fuel spills and natural gas leaks, roughly one a day.
The incidents, most involving local lines carrying natural gas, resulted in
201 deaths, 2,826 injuries and $778 million in property damage from 1990
through 1999.

There also are environmental costs. In January, one of the nation's largest
pipeline companies, Koch Industries of Wichita, Kan., paid a $30 million
civil fine to settle Environmental Protection Agency water-pollution charges
involving 300 oil spills from 1990 to 1997. The EPA said Koch failed to
inspect its pipelines and waited for leaks before making repairs.

Liam Wood's mother, Marlene Robinson, is focused on stronger regulations
nationwide, including more and better inspections, and regional watchdog
committees.

"I don't have any children left to protect," she said in an interview and
repeated at the hearing. "This didn't have to happen to Liam, and it doesn't
have to happen to other people's children."

Although the cause of the Bellingham incident remains under investigation,
one factor might have been damage to the pipeline from a backhoe when a water
line was being installed in 1995. But investigators also have many questions
about the role of Olympic Pipeline Co., which operates a network of pipelines
along a 299-mile corridor from north of Bellingham to Portland, Ore.

Investigators for the National Transportation Safety Board (NTSB) want to
know whether Olympic ignored warning signs and whether it could have acted
more swiftly after the leak. But the inquiry has been delayed by a parallel
investigation by the U.S. Attorney's Office. Several Olympic employees have
declined to testify and have invoked their constitutional rights against
self-incrimination.

Pipeline owners and government regulators defend the safety of transporting
two-thirds of the nation's fuels by pipeline, and they warn that more rules
could boost energy prices. Critics say pipelines are too loosely regulated,
not fully inspected and, in some cases, deteriorating.

The U.S. Transportation Department oversees pipelines. Its Office of Pipeline
Safety sets standards for design, operation, maintenance and emergency
response. Richard Felder, who heads the office, testified at Monday's
hearing. "Our goal is to prevent incidents like Bellingham from ever
happening again," he said.

In an earlier interview, he defended his office's performance and the
industry: "It's a good record. It's the safest form of transporting fuel, far
and away."

The office has extensive rules on pipeline safety, including requirements for
signs along the route and programs to alert potential diggers, but "there's
no such thing as risk elimination," Felder says. "All you can do is manage
it."

But the chairman of the federal government's transportation safety watchdog
agency is unimpressed with Felder's office and says it deserves a grade of F.
"It's been the most frustrating area I've had to deal with as chairman," says
Jim Hall, NTSB chairman since 1994. He says no agency has a worse record of
responding to NTSB recommendations.

In a recent speech, he said there's no indication that the Office of Pipeline
Safety "is in charge or that its regulations, its inspections, its assets,
its staffing and its spirit are adequate to the task."

Felder takes issue with much of the criticism, but he endorses calls for more
research into pipeline safety. He said his office is in the final stages of
preparing new safety standards for heavily populated and environmentally
sensitive areas.

He emphasized that the leading cause of pipeline failure is "third-party
damage" from road, utility and construction work. The agency has worked to
enhance a system to alert pipeline companies of digging with one telephone
call.

Felder is critical of local authorities who ignore pipelines when making
decisions on housing and commercial development. "Local planning has not kept
people away from pipelines," he says. "It's astounding to me."

Felder bristles at critics' suggestions that his agency is a tool of the oil
and gas industry. "I can't agree with that one iota," he says. "We try to
balance the safety issue and the economic issue."

The Senate Commerce Committee will consider a bipartisan bill sponsored by
Sens. Patty Murray, D-Wash., and Slade Gorton, R-Wash.; Rep. Jack Metcalf,
the Republican who represents Bellingham; and Rep. Jay Inslee, a Democrat
whose district includes an operating section of the pipeline.

The bill would require periodic internal inspections of pipelines, boost
federal spending on research, increase the number of federal pipeline
inspectors nationwide - there now are 55 - and expand states' regulatory
authority. On Monday, the Office of Pipeline Safety gave the state of
Washington the temporary right to do more inspections.

The Murray-Gorton bill also would require federal certification of pipeline
workers and expand the public's right to know about spills and leaks.

"I was totally shocked and amazed when this happened," Murray says. "You
always assume that your neighborhood is safe and somebody has taken care of
this."

The Bellingham rupture not only dumped 278,000 gallons of gasoline into this
city of 63,000 near the Canadian border but also unleashed civic furor at
Olympic Pipeline. "It's hard for people to get interested in things they
can't see. Out of sight is out of mind," Mayor Asmundson says. He has visited
the boys' grieving families and lobbied Congress. The blast "has dominated my
life since June 10."

Pipeline operators portray accidents as isolated to escape national scrutiny,
he says. "The whole focus of the industry is containment. Do whatever you
have to do locally, but don't stir things up nationally."

Last week, Murray released a report she requested from the Transportation
Department's inspector general. It faults the Office of Pipeline Safety for
ignoring enhanced safety requirements, including increased inspections inside
pipes, in highly populated and environmentally sensitive areas as Congress
required in 1992 and 1996.

A U.S. General Accounting Office audit of operations is due in May. Also
pending is a decision from Felder and the pipeline safety office on whether
to restart the 39-mile section shut down since the Bellingham accident.
Olympic Pipeline has repaired the line and is eager to reopen it.

People living along the route and officials are pushing for more extensive
testing of the still-operating section of the line south of Bellingham.
Felder says he has not decided whether it should be shut down.

Last week, Felder's office ordered a new round of testing along the entire
line, but critics such as Inslee are not convinced it will be enough. The
tests must be conducted on the closed section of the pipeline before a
decision is made on reopening it.


Thanks

 -----Original Message-----
From: 	Dorland, Chris
Sent:	Thursday, August 09, 2001 12:30 PM
To:	Mckay, Jonathan
Subject:

Congrats on the CFA! Maybe one day I'll get off my lazy ass and give it a shot.

Chris