---------------------- Forwarded by Kay Mann/Corp/Enron on 01/08/2001 06:35
PM ---------------------------

Ben F Jacoby@ECT
01/08/2001 06:24 PM
Sent by: Ben Jacoby@ECT
To: Kay Mann/Corp/Enron@ENRON
cc: Fred Mitro/HOU/ECT@ECT

Subject: Re: Ltr to SEL enclosing Facility Agreements

Tomorrow AM is fine.

Kay Mann@ENRON
01/08/2001 06:03 PM
To: Ben F Jacoby/HOU/ECT@ECT
cc:
Subject: Re: Ltr to SEL enclosing Facility Agreements

Will he be there tonight, or shall we go for tomorrow am?

Kay

Ben F Jacoby@ECT
01/08/2001 06:01 PM
Sent by: Ben Jacoby@ECT
To: Kay Mann/Corp/Enron@ENRON
cc: Fred Mitro/HOU/ECT@ECT

Subject: Re: Ltr to SEL enclosing Facility Agreements

I called John Jones to give him a heads up. He requested that a full copy be
deliverd directly to him as well. Please let me know if you want me or Fred
to follow up on this.

Thanks,

Ben

Kay Mann@ENRON
01/08/2001 05:53 PM
To: Ben F Jacoby/HOU/ECT@ECT
cc:
Subject: Re: Ltr to SEL enclosing Facility Agreements

The stuff is being delivered in accordance with the notice provision of the
letter agreements, which means the  original goes to "President".  A copy is
also being delivered to George, so he would be a good one to make
distribution at Intergen.

Kay

Ben F Jacoby@ECT
01/08/2001 05:48 PM
Sent by: Ben Jacoby@ECT
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: Ltr to SEL enclosing Facility Agreements

Who at Intergen are the agreements being delivered to?

Kay Mann@ENRON
01/08/2001 05:35 PM
To: Ben F Jacoby/HOU/ECT@ECT
cc: Fred Mitro/HOU/ECT@ECT
Subject: Re: Ltr to SEL enclosing Facility Agreements

I had Ozzie sign it, and it has been sent to Carolyn.

Kay

Ben F Jacoby@ECT
01/08/2001 05:32 PM
Sent by: Ben Jacoby@ECT
To: Kay Mann/Corp/Enron@ENRON
cc: Fred Mitro/HOU/ECT@ECT

Subject: Re: Ltr to SEL enclosing Facility Agreements

I'm happy doing it, or Fred can sign.

Kay Mann@ENRON
01/08/2001 03:41 PM
To: Ben Jacoby/HOU/ECT@ECT
cc: Fred Mitro/HOU/ECT@ECT
Subject: Ltr to SEL enclosing Facility Agreements

Do you want to print, sign and fax, or shall I take to Janet or someone else
to sign?

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 01/08/2001 03:37
PM ---------------------------

"Campbell, Carolyn" <CCampbell@KSLAW.com> on 01/08/2001 03:30:43 PM
To: "'kay.mann@enron.com'" <kay.mann@enron.com>
cc: "Keffer, John" <JKeffer@KSLAW.com>

Subject: Ltr to SEL enclosing Facility Agreements

 <<2TCV01!.DOC>>
Kay:

Per your request, enclosed is a proposed letter to SEL enclosing the final
facility agreements.  I have included a "receipt acknowledged" signature in
the proposed letter, although I believe this is optional as long as our
courier, upon delivery, obtains a signature acknowledging receipt.  Please
advise of any comments.  Thank you.

Carolyn M. Campbell
King & Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

Enclosure: 131359v1

                    Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

 - 2TCV01!.DOC


I'm glad you had a good time. I know about 2 DM songs so I don't think I would have had as much fun in the rain.

cd


Jeff-can you review this and let me know what you think.  Please initial and send back if you think it's ok as is.  Plsease advise by Nov 5. Thank you.
 -----Original Message-----
From: 	rpetti@ladwp.com@ENRON
Sent:	Thursday, October 25, 2001 12:03 PM
To:	srbateson@duke-energy.com; bondsr@bp.com; kbosley@reliant.com; halbourlon@reliantenergy.com; pabrown@socalgas.com; dacluff@duke-energy.com; duvalma@texaco.com; ffield@energy.twc.com; arcinc@flash.net; fgearyc@gte.net; greg_hood@oxy.com; wwhusse@ppco.com; carla.j.johnson@usa.conoco.com; ejohnsto@utilicorp.com; skatz@sempratrading.com; dkohler@br-inc.com; dkuhn@oneok.com; karl_kurz@anadarko.com; karim.manji@gs.com; pat_mulhern@oxy.com; anjn@dynegy.com; tom.roth@neg.pge.com; csupplee@utilicorp.com; Tholt, Jane M.; robert.turner@elpaso.com; judith.vogel@elpaso.com; Ward, Kim S (Houston); cweyman@astraoil.com; nancy.wojciehowski@williams.com; Sabrina Bienstock
Subject:	LADWP Gas Contract

Dear Potential Gas Supplier

As some of you may know our authority to buy gas off our existing spot agreement
will come to an end on December 31, 2001.  While we will honor current
commitments for gas to be delivered after that date, but we will not be able to
use the spot agreement to buy any more gas.  The reason that this is happening
is that our City Attorney has interpreted the new City Charter as not allowing
delegations of authority such as employed in the way we buy gas now.

We are seeking approval for an ordinance which must be approved by the City
Council that will restore our former ability to buy gas with the kind of
agreement most gas suppliers are familiar.  We have the ordinance approved by
the City Attorney and it will shortly be in the pipeline for approval by our
Board and the City Council, but until then, this contract is a stop gap to keep
us operating.

I've attached the new contract and a cover letter which explains what we are
doing.  The deadline is November 8, 2001 at 4:00 PM.  We will take the executed
contracts to our Board with the counterparties listed on a Board Resolution and,
if it is approved, we will be allowed to buy gas from this group after the new
year begins.  This is not the ideal contract but one we feel our Board will be
comfortable with until we can get around the Charter problem.  I can't make any
changes to this contract.  There is a notice published in the LA Times about the
availability of the contract but I am sending it to you directly as someone we
have already done business with (and undoubtedly have satisfied all our
boilerplate requirements) and will probably be interested in what we are trying
to do here.

I Hope most of you will respond.  Thanks

(See attached file: Spot Gas Cover Letter.doc)(See attached file: New Spot Gas
Contract.doc)

 - Spot Gas Cover Letter.doc
 - New Spot Gas Contract.doc


Mtg:  George McClellan, Mike Byer & Jeff RE Vulcan (George 33924)


---------------------- Forwarded by Sara Shackleton/HOU/ECT on 07/21/99 09:53
AM ---------------------------

Dale Neuner on 07/21/99 08:01:54 AM
To: Mary G Gosnell/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT, Larry Joe Hunter/HOU/ECT@ECT
Subject: Re: Outstanding financial trades with "The Dow Chemical Company"

Mary, please see my initial findings below, and can you follow-up with Sara -
as I am sure there is some history here.

Dale
3-9746

Sara Shackleton
07/20/99 02:07 PM
To: Dale Neuner/HOU/ECT@ECT
cc:
Subject: Outstanding financial trades with "The Dow Chemical Company"

RE:  Deal Nos.
EY 6926 OMNIBUS  PROPANE 6/30 Credit Rpt says Dow Hydrocarbons...
EY 8108 OMNIBUS  PROPANE 7/02 Credit Rpt says Dow Hydrocarbons...
EY 8531 OMNIBUS  PROPANE 7/06 Credit Rpt says Dow Hydrocarbons...
EY 9343 Status=GENERATED PROPANE 7/07 Credit Rpt says Dow Hydrocarbons...
EQ 6930.1, .2 OMNIBUS  ETHELYNE/ 11/2/98
     ETHANE  I don't have a C/R back this far

ECT does NOT have a master with The Dow Chemical Company.  Are these trades
booked on an omnibus?  I am not certain that credit approved these trades.
Are they all propane?  We need to discuss.  SS


print
----- Forwarded by Steven J Kean/NA/Enron on 10/16/2000 10:26 AM -----

	Ann M Schmidt
	10/16/2000 08:26 AM

		 To: Mark Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Meredith
Philipp/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Elizabeth
Linnell/NA/Enron@Enron, Mary Clark/Corp/Enron@ENRON, Laura
Schwartz/Corp/Enron@Enron
		 cc:
		 Subject: Enron Mentions

A Trio of Little Guys
Embarks on Wild Ride
In Global Oil Market
---
Pursuing Business With DOE,
Their Paths Diverge; One
Leads to `a Lot of Money'
By Wall Street Journal staff reporters John Fialka in Denver, Alexei
Barrionuevo in Tallahassee, Fla., and Jonathan Weil in New York
?
10/16/2000
The Wall Street Journal
Page A1
(Copyright (c) 2000, Dow Jones & Company, Inc.)
Lance Stroud of New York, Renard D. Euell of Denver and Ronald Peek of
Tallahassee, Fla., all had dreams of becoming oil barons. And on Oct. 4, when
the Department of Energy announced the results of the bidding for oil from
the nation's Strategic Petroleum Reserve, they thought their ships had come
in.
Two of the three black entrepreneurs were unknowns in the industry, and none
of them had ever done a major oil deal. But there they were, listed as
winning bidders alongside some of the biggest names in the business --
Marathon Ashland Petroleum LLC, Morgan Stanley Dean Witter & Co., BP Amoco
PLC and Amerada Hess Corp. Each would be given the right to withdraw millions
of barrels of oil from the reserve amid one of the most volatile oil markets
in decades. In exchange, each had offered to replace that oil, plus an
additional amount akin to an interest payment, a year later. They and the
other winning bidders, the Energy Department said, were picked soley because
they pledged to return the biggest quantities of oil to the reserve.
There was just one catch: In its rush to release the oil and so ease a price
crunch, the Energy Department had suspended its usual requirement that each
bidder supply financial guarantees. But it wanted the winning bidders to
present letters of credit, equal to the oil's market value, five days after
their bids were submitted. The big players could easily meet that
requirement. But Messrs. Stroud, Euell and Peek were men of limited means.
They needed to find someone willing to back them for tens of millions of
dollars -- and fast.
The drama made for an unaccustomed scene in Harlem, where the 35-year-old Mr.
Stroud lived with his 74-year-old mother. A heavy-set man with a goatee, Mr.
Stroud, a former Army enlisted man who had dropped out of college shy of
graduation, had held a string of odd jobs while using the Internet to seek
out a big business deal.
The aspiring oil man had entered his bid for four million barrels from the
reserve, via the Internet. He won't discuss the details of his bid, but says
he thought he could outbid the large oil companies because he didn't have as
much overhead. After the winning bids were announced, Mr. Stroud became
something of a celebrity. TV news crews arrived to interview his neighbors,
many of whom had no idea what all the fuss was about. "I thought he [Mr.
Stroud] was some kind of rap star," recalls Carline Thomas, who lives down
the hall from him.
As neighbors paused to shoot the breeze on the steps of nearby residential
buildings, most marred by graffiti, Wall Street couriers bearing fat packets
of information spent the week scurrying back and forth from Mr. Stroud's
apartment on a seedy block in Harlem's central business district.
Inside Mr. Stroud's apartment, the telephone wouldn't stop ringing, and his
mother was helping him field the calls. He says he was in serious talks with
four companies. And a movie producer was interested in his life story. Then,
amid the chaos, tragedy struck. On Tuesday night, his mother, Iris Manning,
suffered a cardiac arrest, and was taken to a hospital a few blocks south of
Mr. Stroud's apartment.
Mr. Stroud said he spent most of Wednesday running between his apartment and
the hospital, taking occasional phone calls to deal with prospective
financiers. Ms. Manning went into cardiac arrest three more times, and died
at 9:47 p.m. Wednesday evening.
Mr. Stroud was dazed by the fact that what he called the two biggest events
of his life -- the death of his mother and his selection by the Energy
Department -- occurred almost simultaneously. "I'm saying `there must be some
reason I'm here,' " he said later. "These things happening like this, the
odds must be in the millions."
Mr. Stroud won't discuss which companies were vying for his oil, but he says
at one point he thought he had an offer to buy him out for $1.50 a barrel, or
$6 million. The most serious discussions began Thursday, with a
representative from a refining company, which he refuses to name. From that
discussion Thursday until the following evening, Mr. Stroud says, he was
confident that the refiner would grant him the letter of credit he needed.
But at 9 p.m. Friday, three hours before his deadline, Mr. Stroud said he got
a call telling him the deal was off. "I was upset," he says. "I mean, instead
of wasting my time with that I could have obtained the financing quickly"
from some other source.
A spokesman for Koch Industries Inc., based in Wichita, Kan., said it was in
negotiations with both Messrs. Euell and Stroud. "We invited them to make a
deal that made economic sense." BP Amoco said it also had discussions with
Mr. Stroud.
Mr. Stroud now says the DOE should have given him an extension, under the
circumstances. "If your mother passes, aren't you given three days to
grieve?" Mr. Stroud asks. His mother's funeral is scheduled for Wednesday,
which would have been her 75th birthday, he says.
Mr. Euell ran a small company, Euell Energy Resources, whose 12 employees
helped him broker natural-gas sales and other small energy deals. By night,
he worked the phones from his home in a modest Denver suburb, calling oil
producers in Nigeria and energy brokers in Singapore and Sydney, always
looking for the big score that would make him rich.
A friend, Norman Early, a sometime golfing partner and a former Denver U.S.
district attorney, says the 50-year-old Mr. Euell is "one of those guys who
shoots for the stars." On Oct. 4, Mr. Euell thought he had hit one. He had
been awarded the right to withdraw three million barrels of oil from the
Strategic Petroleum Reserve, in exchange for returning 3.3 million barrels a
year later. That was enough oil to fill 14,019 conventional tank trucks.
Knowing he would need a partner to provide financial backing, Mr. Euell had
already placed a call to a man he'd never met: Kenneth L. Lay, chairman and
chief executive of Enron Corp. He said he was sure he was going to be one of
the top bidders for the reserve oil. Would Enron like to be his partner?
Within a few hours John Nolan, the giant energy company's vice president in
charge of trading, called from London. Enron , he said, was interested.
By Oct. 6, the price of oil had already fallen, making Mr. Euell's bid look
generous. Still, he felt bullish. "I'm betting on Mother Nature, that she's
coming back this winter and that oil's going to be more valuable."
It wasn't Mother Nature, but the crisis in the Middle East that turned things
around. Monday, Oct. 9, the target price for November oil futures on the New
York Mercantile Exchange, jumped a dollar to $31.86 a barrel and headed
higher. Mr. Euell flew to Houston and took a room at the Hyatt Regency, from
which he could see Enron 's 50-story office tower.
By Tuesday, the price of oil had hit $33.18. By Mr. Euell's calculations that
meant a $3 million profit for him and an equal amount for his prospective
partner just across the street. Enron 's lawyers were working on an agreement
that would substitute Enron as the major party in Mr. Euell's contract, he
said, and were drawing up the letter of credit for $93 million that the DOE
required.
Eager to close the deal, Mr. Euell called Enron trader Patrick Danaher, who
was working on the project. "I want to sign this thing up today," Mr. Euell
told him, claiming that he had received an offer from another, unnamed firm,
offering to buy his contract for $1.2 million. According to tapes of the
conversation provided by Enron , Mr. Danaher said the paperwork was under
way: "Let me see if we can do that today."
Mr. Euell called backed at 11:30 a.m. and again at 11:45 a.m. Each time, the
trader sounded more pessimistic. Prospects were "50-50." When Mr. Euell
suggested he had other offers, Mr. Danaher told him: "If you have a bid at
$1.2 million, you should take it. A bird in the hand is worth two in the
bush. I just have to tell you that." Still, he invited Mr. Euell to dinner.
Tuesday's deadline passed without dinner or any action from Enron . While it
appears from the tapes that the parties had been close to an accord, Eric
Thode, a spokesman for Enron 's trading branch, says: "At no time was there
anything remotely resembling a deal with Mr. Euell."
Mr. Euell got the DOE to agree to extend the deadline for another 24 hours
and, after a round of frantic phone calls, says he collected pledges from a
group of European banks to support the $93 million letter of credit. But,
when the new deadline expired, he still had failed to get the proper
paperwork to the DOE, which then declared his award to have lapsed. "They
played me," Mr. Euell complains, blaming Enron for the missed deadlines.
Still, he says, the experience amounted to an instant "Ph.D." in oil. Next
time, he vows, he will have his own letter of credit.
The DOE said late last week that it will accept new bids on the seven million
barrels of oil Messrs. Stroud and Euell forfeited.
As for Mr. Peek, he remains the mystery man of the three. His company,
Burhany Energy Industries Inc., was formed Aug. 21. It employs no one but Mr.
Peek himself. Staffers at the Florida Black Business Investment Board, where
Mr. Peek works as a business-development specialist, said he had taken last
week off. Shutters were drawn at his modest, one-story house in Tallahassee.
Phone calls to Mr. Peek were forwarded to an unidentified neighbor. In an
e-mail to a reporter, Mr. Peek apologized for being unreachable. He was
"working relentlessly to consummate this transaction" and couldn't "entertain
any distraction at the moment."
On Saturday, the Department of Energy announced that Mr. Peek had
successfully transferred his interest in three million barrels of government
oil to Hess Energy Trading Co. of New York, a partnership that includes
Amerada Hess. Amerada Hess Vice President Carl Tursi said he could give few
details of the deal, except to say that he believes there was an
"arrangement" that resulted in "a lot of money" for Mr. Peek.

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

Financial
DEAL OF THE WEEK; Artesia Seeks a Link To Information Firms
Nicholas Johnston
?
10/16/2000
The Washington Post
FINAL
Page E05
Copyright 2000, The Washington Post Co. All Rights Reserved
Rockville-based Artesia Technologies wasn't just interested in another
venture capital investment. It wanted partners.
In its recent $26 million funding, the digital asset management company's
second round, its venture capital lead was joined by a group of "strategic
partners."
Artesia wanted to form relationships with other information management
companies, instead of working only with banks or venture capital firms. "We
wanted to make it more of a partnership with other companies," said Brian
Hedquist, Artesia's marketing communications manager.
For example, in September, Vignette Corp. of Austin announced an agreement
with Artesia to create an Internet commerce application. Now with Vignette's
investment, the relationship is strengthened. "It's not a pure financial
investment," said Hedquist of the equity stake Vignette and the other
strategic partners have in Artesia. "They have a vested interest. We're all
going to benefit."
Artesia was born last year in a management-led buyout with the help of $25
million from Warburg Pincus.
CEO Chris Veator created the company when he and a group of insiders led a
buyout of the information management division of Boston-based financial
information giant Thomson Financial Corp.
Veator's idea was to jump into digital asset management for a broad array of
clients, not just managing information for publishing companies and new
organizations.
"We found very quickly," Veator said, "that the real opportunity was not just
in the publishing community."
Company officials said the funding will help Artesia pursue more
international expansion opportunities, the primary focus of which will be
Europe, where Artesia opened a London office last June. Also, the financing
will be used to increase the sales and marketing staff. Veator expects the
staff to double and revenue to triple over the next 12 months, though he
declined to give any financial information.
Artesia Technologies
Deal size: $26 million
Investors: Led by Warburg Pincus Ventures; EA Systems Inc., Enron Broadband
Services, Vignette, Razorfish and Protege Virtual Management Solutions
Description: Digital asset manager, helps companies catalogue, search and use
stored digital information
Headquarters: Rockville
Employees: 140
Web site: www.artesia.com

Contact: http://www.washingtonpost.com
IG

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

Oct. 16, 2000, 11:01PM
What public gets is at heart of arena issue
By ERIC BERGER
Copyright 2000 Houston Chronicle
When Enron Field opened this spring, the Astros boasted to fans that they
were playing baseball the way it was meant to be -- on real grass, under the
open sky.
Blocks away, the Rockets and most of the city's political and business elite
are asking voters for a new basketball arena.
Yet, if voters approve the construction in the Nov. 7 election, the game
still would be played indoors on a hardwood floor. An arena is, after all, an
arena, and basketball already is played in Houston the way it was meant to
be.
The team points to such fan benefits as a flashier show, with modern video
and sound equipment, and a more competitive team funded by higher revenues.
The arena's influential backers say an arena would spur downtown development,
strengthen the economy and help affirm Houston's position as a world-class
city.
For nonfans, it's difficult to predict how many of these benefits an arena
actually would generate. More calculable is the financial effect it would
have on Rockets owner Leslie Alexander and, to a lesser extent, the city of
Houston.
Compared with his bare-bones lease at Compaq Center, Alexander and the 12
players who wear his uniform stand to benefit greatly.
Based on estimates from other new arenas, Alexander stands to reap $30
million to $45 million more a year were he to go from being a tenant at
Compaq Center to being landlord of a new arena. For about $7 million a year,
Alexander would enjoy revenue from such sources as 100 luxury suites, premium
club seating near the court, selling the building's name and even bestowing
upon Miller, Coors or some other brewer the right to sell $6 beers.
Granted, going from tenant to landlord would boost his costs. Less the rent
he now pays at Compaq Center, Alexander would spend $8 million to $10 million
a year to keep the lights on.
For players, there's no such overhead. They would share the windfall. Under
the collective bargaining agreement ratified in January 1999, most revenues
collected by NBA owners are stirred into a mythical pot, out of which 55
percent is divided by the number of teams to determine a salary cap.
For the city's part, it would spend less money buying and preparing land for
the arena under this year's deal, with expenses capped at $20 million. A
different location chosen in last year's plan would have cost the city at
least $15 million more.
Both this year and last the city was to own the land and arena after 30
years. Now the city would get a parking garage, too.
In the revised agreement, the city also would receive $200,000 a year, use of
the arena for convention-related events or fund-raisers on 20 days a year,
and a suite between the free-throw lines.
It's a "much better deal" for Houston, says Mayor Lee Brown, who, as a chief
negotiator and supporter of the previous deal, is among the least likely to
make such admissions.
City officials have valued the suite at $250,000 to $500,000 because it would
allow Houston to woo convention center customers. The Rockets plan to sell
the suites for $100,000 to $150,000 each.
The suite actually could cost more than it is worth if the city opts to cater
games for visitors. This year, the sports authority spent about $65,000 on
food for about 80 dates at Enron Field. There would be at least twice as many
events in the arena.
The public would make its greatest contribution through the Harris
County-Houston Sports Authority.
That board would sell bonds to cover the arena's $175 million design and
construction cost. Appointed by the city and county to collect hotel and car
rental taxes to finance stadium construction, the 13-member sports authority
also would repay a $30 million loan -- interest-free for the first five years
-- from business leaders earmarked for a parking garage.
What does the public get in return?
"Something much bigger," said Ken Lay, co-chairman of the pro-arena campaign.
"It's making Houston, Texas, and particularly downtown, a much more viable
economic area. Making it more attractive for business to come to town, making
it more attractive for conventions to come to town, and making it more
attractive for the best and brightest talent in the world to come here and
work with us."
Moreover, supporters say a downtown arena, with its advanced sound and video
systems, wider concourses, scores of restrooms and a constellation of
eateries, would be like going from a phonograph to a hi-fi stereo.
Some longtime Compaq Center patrons who have visited new arenas agree.
"When people go to Enron Field they've had an experience," said fan Rebecca
Tonahill, 53, who attends a couple of dozen Rockets and Comets games a year
and has traveled to Los Angeles and Indianapolis arenas that opened last
year. "You don't get an experience at Compaq Center, but I think they could
capture some of that with the new arena."
Overall analyses of the deal's bottom-line cost vary by how much the sports
authority loses, if anything, from building the parking garage.
Harris County Tax Assessor-Collector Paul Bettencourt calculates the Rockets
would pay only 30 percent of the arena's total cost, which comes to $256
million by his tally, and the public would pay the remainder. Ric Campo, the
sports authority's financial whiz, contends the team's contribution would be
closer to half of the $220 million he estimates as the total cost.
Depending on how the numbers are manipulated, both are right.
Bettencourt believes the public would pay the parking garage's entire $35
million cost.
A sore spot among tax watchdogs has been the sports authority building a
garage that Alexander will have exclusive profit from during his events,
including games involving the Rockets and Comets basketball teams and
ThunderBears arena football team.
Still, said Campo, the sports authority has use of the garage at all other
times, which he says would be enough to cover annual garage payments. The
private loan is interest-free for the first five years, which would save $9
million.
What is clear is that taxpayers would spend between $125 million and $175
million to build an arena that would create wealth for a few. Arena opponents
call it corporate welfare. Supporters say it's a good investment.
It has happened before, to an even greater extent, with the construction of
Enron Field for Astros owner Drayton McLane Jr. and the football stadium for
Houston Texans owner Bob McNair.
"This point always raises serious questions about balance in people's minds,"
said Dennis Howard, a sports marketing professor at the University of Oregon.
"Those paying the greatest share are not getting the benefit. They often
can't even afford to go."
The counter-argument from arena supporters is that visitors pay most hotel
and car rental taxes. Bettencourt has studied the issue and concluded that
locals pay at least 30 percent of the visitor taxes.
Howard's research suggests about one of every 10 people who live in a market
where a major-league sports team gets a new building ends up using the
facility in a given year. However, the study did not differentiate arenas
from football or baseball stadiums. Arenas probably would attract more people
because of the many nonsporting events held there.
Not only do fans pay for the building with taxes, they are hit again by more
expensive tickets, said Howard, noting that average ticket prices jump by 30
to 40 percent in a new building.
The Rockets disputed that, citing a study of six recently opened arenas where
prices jumped from 7 to 28 percent. The team's chief operating officer,
George Postolos, said the Rockets have not raised the price of the most
affordable tickets in five years. He said the team would remain committed to
keeping a comparable number of affordable seats in a new arena.
Customers buying expensive tickets, typically corporations, would feel the
bulk of the increase.
"Premium seat holders get more in a new building," he said, "and they pay
more for it."
Houston voters, at least, have a fairly clear idea of who is getting what in
this deal. "It's all right there on the table," notes Bob Eury, president of
Central Houston Inc.
That is not always the case when teams and governments are eager
collaborators in search of public support. In Indianapolis, for instance,
local media suggested the agreement to build the $183 million Conseco
Fieldhouse involved $104 million in private money and $79 million in public
money. One reporter writing in the Indianapolis Star's special arena-opening
section went as far as to write: "This isn't Houston or Hartford, Conn., or
those other cities that swung open the public vault when it came time to pony
up for new sports facilities."
An arena built with less public than private money in such a small market
would be something worth bragging about.
The reality in the bond documents is much different: The city's capital
improvement board sold $222.6 million worth of bonds to finance the arena and
a parking garage. Those bonds will be repaid by a dizzying array of taxes,
including a cigarette tax, car-rental tax, hotel tax, a tax on goods sold at
the arena, and a diversion of state income taxes on player's salaries.
The private contributions come from $10 million worth of donated land, a $37
million loan to be repaid by the city, and, as touted by the Star, $57
million from the Pacers basketball team.
But the Pacers' "contribution" is made up almost entirely of revenues the
city expects to generate from the arena's publicly financed parking garage
when the team is not using it, according to an attorney who worked on the
bond sale.
Advertising for the arena in Houston so far has been accurate, but there are
two sides to some of the numbers presented.
A common claim is that the Rockets would pay $8.5 million a year in rent,
appearing most recently in an Oct. 1 opinion piece by sports authority
Chairman Billy Burge. This implies that more than half the $13 million to $14
million the sports authority would pay on its arena debt each year would come
from the Rockets.
Actually, of this "rent," $1.6 million would be put into a fund for major
arena repairs. Another $1.5 million would be paid to the sports authority,
but if the sports authority could pay its annual debts, the money would be
refunded to the Rockets. The sports authority would have enough money to pay
its debt on three stadiums if its tax revenues rise at 3 percent. They have
grown at around 10 percent in recent years.
Finally, another $200,000 of the "rent" is paid to the city.
Boosters also commonly promote arenas to voters as engines of economic
development, generating millions of dollars in sales taxes.
But even if the teams left, most personal leisure spending would simply be
spent on movies, the arts or other forms of entertainment, said John
Siegfried, a Vanderbilt University economics professor.
The other major chunk, from sales taxes on corporate spending at the arenas,
often comes from advertising budgets, he said, and there are other
promotional activities where the money could be spent.
"Repeatedly, we're finding the emperor has no clothes," said Howard, of
Oregon. "These buildings are sold as economic development engines, but the
economic impact they create is negligible."
Studies by professional consultants may, and often do, find otherwise, but
they are usually commissioned by a team or government seeking to justify
public spending on a new facility, Siegfried said.
Campo countered that building Enron Field has already fueled local economic
gain from higher property tax revenues. The ballpark's 10 blocks of land were
purchased at $12 per square foot, he said. A single block across the street
was recently sold for $100 a square foot to Trammel Crow.
Land values around the arena site have likewise doubled within the last year
on speculation of development there.
"That's creating a lot of value for the city, county and schools," Campo
said.
Economists, including four interviewed for this article, argue that spending
public money in other ways, such as tax abatements to developers, would
stimulate even more activity. They point to research in respected economic
journals that has found higher high school graduation rates and more spending
on police encouraged economic growth, whereas a major-league sports team
actually put a drag on the economy.
By Texas law, the sports authority may not spend the taxes it collects on a
venue unless it is approved by voters, and it may spend its revenue only on
sports facilities or other community projects like an arts center.
Its 2 percent hotel tax and 5 percent car rental tax will not rise if the
arena proposition passes. Adding arena payments to its existing debt would
completely tap its resources, however.
The board has not addressed what to do if the arena fails. To spend money on
anything other than an approved venue, such as hospitals or schools as
opponents suggest, would require legislative action.
Return to top

OUTLOOK
Editorials
FOR ARENA / Many concrete reasons to support this proposal Nov. 7
Staff

10/15/2000
Houston Chronicle
4 STAR
2
(Copyright 2000)

Houstonians are no strangers to the many arguments for and against the
building of new sports arenas. We've hashed and rehashed them often in the
past few years. We've put one facility - Enron Field for baseball downtown -
on the map, and we're erecting another - a new football/rodeo stadium at the
site of the Astrodome.
A decision on a third piece - a downtown basketball/hockey arena - is
forthcoming on the Nov. 7 election ballot.
The Chronicle urges voters to vote for the arena referendum.
It makes sense for Houston to finish the third leg of this sports facility
package as both a quality-of-life amenity and a valuable economic development
tool.
The arena proposal is essentially the same one, in terms of financing, as the
others that were approved by voters in 1996. Tax dollars will be spent
sparingly, taxpayer liability is limited, and taxpayers are even protected
from having to pick up cost overruns.
The fact there is a relative consensus on the proposal, or at least a lack of
vigorous opposition as there was on a previous proposal, is a signal that
this deal is a better one for Houston. The building's tenants, the Houston
Rockets and Comets, are paying a fair share of the costs.
Ticket and parking taxes have been eliminated from the new proposal.
Many people find the "corporate welfare" aspect of publicly financed arenas
distasteful, and some of their concerns have merit. But the reality is that
major league sports teams are amenities that help cities and all of their
residents. That's part of the reason so many cities compete to have them and
retain them.
Houstonians have debated this issue for years, and some people will adhere,
no matter what, to the philosophy that sports teams shouldn't be publicly
subsidized. Continued debate won't change their minds.
We believe the presence of sports teams and facilities such as these is a
plus for the city that far outweighs the public costs.
It's not an esoteric, theoretical discussion. The proof is concrete - as
concrete as the 18 new projects developed in downtown around Enron Field.
They include a mix of residential, office and entertainment facilities
totaling about $700 million.
The economic activity these enterprises generate is already a boon to
Houston's economy. The property value they add to the tax rolls will more
than offset the public investment costs of Enron Field.
Some critics of the arena have posited the theory that funds needed for
public safety, such as improvements to the Fire Department, will be raided or
shortchanged by the city's commitment to the arena. But that's simply not the
case. The increased property taxes and other benefits of a more dynamic
downtown will repay the city's investment many times over. That's new tax
money available to the city's general fund, which pays for police and fire
protection. So, it's not an either-or decision.
Furthermore, what the stadium and all this activity have done for downtown,
and for Houston's image as a whole, is quite remarkable.
Remember, downtown's northeast quadrant was was a virtual ghost town of
dilapidated warehouses and empty fields only a few months ago. Enron Field,
coupled with Theater District development and other projects, has put to rest
almost every argument that was made against the building of that stadium.
A downtown arena would help complete the renaissance of the area and would
put money into the public coffers.
These are all strong reasons to vote enthusiastically for the arena proposal
on Nov. 7.

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

A
Is new arena deal a slam-dunk for taxpayers? / Houston's costs, funding for
NBA team compared to other cities
ERIC BERGER
Staff

10/15/2000
Houston Chronicle
2 STAR
1
(Copyright 2000)

Those who support subsidizing an arena to keep the Houston Rockets in Space
City hail the deal struck this summer. It's better for taxpayers than last
year's accord, they say. It's comparable to what the Astros and Texans got.
Perhaps more important, they say, the agreement Houstonians will vote on Nov.
7 is a "market deal" that compares favorably with other arenas built in
recent years for National Basketball Association teams.
But does it really?
A Houston Chronicle study of the seven most recently built U.S. arenas for
NBA clubs reveals that four were constructed with less tax money than will be
spent here if voters approve next month's arena proposition. One had a
slightly larger public contribution and two were built with considerably more
public money.
There are good reasons for this, arena boosters contend. Unlike Houston,
three of these four cities offering lesser subsidies provided other
incentives.
In Dallas and Los Angeles, they note, the government condemned whole blocks
of land for private development around the arena. In Atlanta, Ted Turner was
given carte blanche to develop public land.
All of the markets that received a smaller subsidy also had both major league
basketball and hockey teams, which could share the construction costs. Two
teams generate more revenue, which tends to make the public contribution less
vital.
"This is one of the largest single-team contributions to a building ever,"
said Rockets Chief Operating Officer George Postolos, whose team is paying
about $7 million a year for control of the Houston arena.
Still, there is another general rule of thumb when it comes to determining a
public subsidy. Historically, the less populous a city and its suburbs, the
more public money is needed to complete an arena project. With their bevy of
Fortune 500 companies, larger cities far outstrip the mid-sized markets'
capacity to buy the pricey suites and club seats that make new arenas so
lucrative for NBA owners.
Strikingly, an arena was built with far fewer tax dollars in one city smaller
than Houston - Denver.
Atlanta, a market comparable to Houston, built an arena with considerably
less public money.
This was also the case in two larger markets. Los Angeles built an arena with
almost no public money, and Dallas' expensive project had substantially less
public than private money involved.
Only two of the cities reviewed, San Antonio and Indianapolis, built arenas
with larger public money contributions, which is consistent with their
relatively small market stature.
"The arena deal follows the Enron Field-type of model," said Harris County
Tax Assessor-Collector Paul Bettencourt, who released a study critical of
Houston's arena plan but has not campaigned against it. "It's consistent with
how the baseball and football stadiums were built in Houston.
"But it's clearly not the model for arenas in the rest of the country, from
Los Angeles to Atlanta to Denver."
Conservative activist Bruce Hotze, who recently launched an effort against
the arena, says Houston should follow the example of other cities where the
owners of sports teams - such as the Utah Jazz in 1991 - have primarily paid
for their facilities. He characterizes anything less as corporate welfare.
The list of factors determining how far a team can dip into public coffers
goes on, from the breadth of a team's local following to its success and its
owner's popularity, said Andrew Zimbalist, a Smith College economics
professor.
But the overriding factor is probably simpler, he said.
"The best strategy for any team to follow is to ask for so much money that
the referendum passes by a tenth of a percentage point," Zimbalist said.
"Teams will get as much as they can. If it passes by 5 percent, the owner,
usually a smart businessman, has done himself a disservice."
Another big factor is a threat to move.
This has loomed over Houston since NBA Commissioner David Stern announced
earlier this year that he was "certain" the Rockets would leave town without
a new building.
When the Denver Nuggets wanted a new arena in the mid-1990s they had a decade
left on their lease. The Rockets have just three years left before they can
leave Houston. Otherwise, Denver's circumstances as its leaders began
negotiating with the team were remarkably similar to Houston's.
The city had just spent about $200 million in public money to build Coors
Field for the Colorado Rockies baseball team, and was contemplating an even
larger expenditure to replace Mile High Stadium for the NFL's Broncos.
But when it came to the city-owned McNichols Arena, built, like Compaq
Center, in 1975, the attitude was that if the team's owner wanted a new
building he would have to do it largely with public money, said Dean Bonham,
a Denver-based sports consultant. Eventually, the owner got some city
concessions totaling about $30 million but paid for all the arena's
construction costs.
A few years later in Houston, after building Enron Field and ponying up for a
new football stadium, public leaders have signed a similar, heavily
subsidized plan for the basketball team.
What was it that opened Houston's treasury when Denver's was closed?
"I can sum the difference up in one word: leverage," Bonham said. "The Denver
teams weren't going anywhere soon. The Rockets got a green light to go."
In Miami, a smaller market where a building was constructed with slightly
more public money than would be spent in Houston, the Heat's first arena was
only 8 years old when the team asked for a new facility.
At first team officials, amid threats of leaving, managed to cut a deal with
the Miami-Dade County Commission to build a $165 million arena on Biscayne
Bay with only $50 million coming from the team.
But leading up to a referendum a new county mayor, Alex Penelas, was elected
in part because he campaigned against public financing for the arena, saying
the county had "given away the kitchen sink."
Later, a deal was struck in which the team paid for the arena's construction
and the county bought bayfront property and helped the team with annual
operating costs.
This dramatic game of building publicly backed sports stadiums with
questionable public support is so familiar throughout the United States that
it has practically become the fifth major league sport.
More than $21.7 billion has been spent or committed on 95 built or planned
big-league stadiums since 1990, and, according to several economists'
calculations, two-thirds of that money comes from public sources.
In Houston, more than two-thirds of the nearly $1 billion in built, planned
or proposed stadiums since 1996 has or would come from public sources.
In spring 1996, citing aging facilities and unprofitable leases, the Oilers
had left town and the Astros were making threats. The still-champion Rockets
were bound here into the new century, but would soon sue to break that lease
and were making no promises beyond 2003.
The Astrodome and Compaq Center had lost their sheen amid a nationwide tide
of stadium building that is only now ebbing. Political leaders decided they
must do something to stop the defection of Houston's pro sports teams.
For several months, a blue-ribbon commission chaired by Pete Coneway and Ben
Love tackled the issue, ultimately deciding, as elsewhere around the country,
that the city and county should help build new facilities for baseball,
football and basketball.
From this blueprint arose the Harris County-Houston Sports Authority, which
has helped fund two of those facilities and is seeking voter approval to
spend its remaining tax revenues on a new downtown basketball arena.
The Astros hit the jackpot with Enron Field, which has propelled their
attendance to more than 3 million for the first time. After the Oilers made
good on their threat to move to Nashville, it took Bob McNair's $700 million
and Texas charm, as well as a $367 million football stadium, to bring the NFL
back.
Sports authority members say that if McNair's experience teaches Houston
anything, it will take a far greater investment than the proposed arena's
costs to return the NBA should the Rockets leave.
They point out as well that in building both the baseball and football
stadiums, although each cost more than the arena, Alexander would pay more
than has either McNair or Astros owner Drayton McLane Jr.
Houston's arena deal, as complicated as it appears, lacks the hidden value
attached to some other deals, which Rockets officials say makes sports team
owners in the other markets appear less mercenary at first blush.
More than two years ago Dallas voters approved a $125 million public
contribution to a new arena by a handful of votes in a citywide referendum.
A scrappy coalition of opponents, which had only $75,000 to spend, tried to
point out that the public was giving up much more than the $125 million.
Beneath that widely reported figure was essentially freedom for the arena
developers, Dallas Mavericks owner Ross Perot Jr. and Dallas Stars owner Tom
Hicks, to proceed with an 18-city block, $1 billion overall development with
the city's blessing.
In January, Perot sold the Mavericks basketball team to Internet billionaire
Mark Cuban.
Perot, who had bought the team only four years earlier, said he was
interested in the new arena largely for the related development
opportunities.
"A lot of people look at a basketball team as an anchor tenant for an arena.
I look at an arena as the anchor tenant for a much larger program," he said
upon selling the Mavericks. His Hillwood Development Corp. retained the
development rights.
To aid the development, the city of Dallas condemned much of the land and
offered as much as $30 million for infrastructure work to spruce up the
property.
The city also let both the Stars, a hockey team, and Mavericks out of their
Reunion Arena leases several years early and went so far as to ensure no
other sports referendums would be on the same ballot. Hillwood also got a 4
percent construction management fee and Hicks 1.5 percent as part of the $325
million in public and private money spent on the arena.
"Oh sure, there were kickbacks and all that," said Sharon Boyd, co-
chairwoman of the opposition group It's a Bad Deal!
"It was like all of a sudden there were five men in Dallas that got free land
and didn't have to pay taxes. That's a sweet deal."
Like Dallas, Atlanta offered Ted Turner a plush real estate deal to keep the
Hawks basketball team in the city, freeing up the NBA team to pay more than
half the arena's actual construction cost.
Hawks' owner Turner Broadcasting Co. was given 10 years to add development to
the public land the arena was built on, with streets, roads, sidewalks and
other needed infrastructure paid for with tax money.
In Los Angeles, the city condemned most of about 30 acres surrounding the
privately developed Staples Center for a hotel, restaurants and an
entertainment district.
"The subsidies take all kinds of forms," said Robert Baade, an economics
professor at Lake Forest College in Illinois.
"The cities and teams have become much more clever about how they finance
these things and hide the public subsidies."
Monday: Who would pay, who would benefit from a new arena.

Graph: 1. Basketball arena deals (p.18); Photos: 2. Houston Rockets Proposal
arena (p.18); 3. San Antonio Spurs: SBC Arena (p. 18); 4. Dallas Mavericks:
American Airlines Center (p.18); 5. Atlanta Hawks: Phillips Arena (p.18); 6.
Denver Nuggets: Pepsi Center (p.18); 7. Los Angeles Lakers, Los Angeles
Clippers: Staples Center (p.18); 8. Miami Heat: American Airlines Arena
(p.18); 9. Indiana Pacers: Conseco Fieldhouse (p. 18)

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


Greetings:
n order to keep everyone in the loop, the folks on today's call wanted to
send out a brief summary of the call for the benefit of those who couldn't
make it.  Apologies for any omissions, inaccuracies, etc.  Others who were on
the call please chime in if I've gotten anything wrong, or missed anything.

Best,
Jeff

SUMMARY
Enron, Duke, El Paso and Williams were on the call, as was Michael Hoffman of
the Blackstone Group (the Governor's financial advisors).
On the subject of how the group would organize itself, it was agreed that the
calls would be open to anyone who wanted to participate.
A smaller group consisting of Duke, El Paso, Enron, and Williams would take
the lead on walking the halls of Sacramento, meeting with policy makers, and
advocating whatever plan the group develops.
Folks agreed that achieving a comprehesive solution requires a tangible
process; that is, the principals need to get in a room, face to face, for
however long it takes to work out a resolution.
It was agreed that the process should start no later than the beginning of
next week, and that it should take place in Sacramento.
It was decided that the Legislature and the Attorney General needed to be
brought into the process as soon as possible, i.e., next week.
There was some discussion regarding the release today of "Plan B."  Plan B is
a plan proposed by Democratic and Republican legislators as an alternative to
the MOU that the Governor struck with Edison.  After that call I received a
copy of "Plan B."  If you'd like a copy please send me your fax number.
Folks on the call agreed to have the next "supplier-only" call-in meeting on
Friday.
Finally, Michael Hoffman said that they are hoping to have a "ratings agency
level" presentation prepared by the end of the week.  The goal of the
presentation is to reassure capital markets that the bonds the state seeks to
issue are solidly backed by retail rates.

The Agenda for Tomorrow's Call with the Governor's Staff
Item #1:  The Credit Issue
Michael Hoffman said that the Governor's office wants to start tomorrow's
meeting discussing the creditworthiness issue.
Hoffman said that the Governor's folks are hoping to have completed by the
start of tomorrow's meeting a draft of an agreement between the California
PUC and CDWR.  The agreement is designed to ensure that DWR gets paid for
power services delivered.
If the draft is ready, they'd like to discuss on the call tomorrow.

Item #2:  Identify the Components of a Comprehensive Solution.
It was agreed that our group should put on the table at tomorrow's meeting
the universe of issues that need to be included in a comprehensive solution.
Enron was asked to take a first stab at what those components are.  The
following is a brief outline, which is not intended to be definitive, but a
starting point for discussion.
Utility creditworthiness
retail rates must reflect costs
Increase supply
streamline and otherwise reform the siting process
Decrease demand
establish real-time pricing
implement demand buy-down and other conservation programs
Create a real market
Remove the State from the power-buying business as soon as possible (e.g.,
once new rates are in place and utilities are returned to creditworthiness;
approximately 3-6 months)
Return the procurement role to the utilities
Reinstate Direct Access immediately for all customers
Within 18-24 months, create a "core/noncore" market structure for
electricity, similar to California's market structure for natural gas
Keep the industry in the hands of the private sector
Reject proposals calling on the State to take over transmission, generation,
etc.
Resolve outstanding legal claims, investigations, etc.
Resolution requires certainty and prompt payment (understanding that
discounts on receivables is on the table for discussion)


Tim and Steve,
	As mentioned by Tim, another alternative would be to not make the prepetition payment and just use the market to settle these obligations.  If the cost of the payment is factored into the cost of the transmission and compared to the cost of a market settlement, the company would benefit by not making the prepetition payment for approximately the next 32 days worth of deliveries.  After this time the company would incur additional costs to deliver at Pinnacle Peak for the remaining term of the WALC obligation.  The term of the WALC agreement is through 12/31/04 and is in the money during LLH for the entire term.
 -----Original Message-----
From: 	Fischer, Mark
Sent:	Wednesday, January 09, 2002 10:18 AM
To:	Belden, Tim; Alonso, Tom; Salisbury, Holden
Cc:	Thome, Stephen
Subject:	RE: APS Transmission Invoice

Tim
We are currently using APS transmission to satisfy a LLH short position at Pinnacle Peak.  The revenue associated with the sale at Pinnacle Peak is $45/MWh.  The transmission is used to liquidate a long position at Four Corners 345 against the Pinnacle Peak short position.  The cost of the power purchased at Four Corners is $22.25/MWh.  Using the APS transmission is the most economic liquidation scheme at this time.  Our alternative would be to sell the length below the market value, and buy the short at above market value.  This assumes that we could find a willing buyer and seller. The spread between the purchase and sell price in this scenario is estimated at $5/mwh.  The cost of the APS transmission is $1.95/mwh.

Salt River has the facility to provide the same service, but at this time they are unwilling to provide service to Enron.

If you have any further questions please contact me.
 -----Original Message-----
From: 	Belden, Tim
Sent:	Wednesday, January 09, 2002 8:49 AM
To:	Alonso, Tom; Fischer, Mark; Salisbury, Holden
Subject:	FW: APS Transmission Invoice

what is this transmission for?  how critical is it?

 -----Original Message-----
From: 	Thome, Stephen
Sent:	Tuesday, January 08, 2002 2:51 PM
To:	Schneider, Chip; Calger, Christopher F.
Cc:	Helton, Susan; Gorte, David; Miller, Don (Asset Mktg); Aucoin, Evelyn; Plauche, Stephen; Belden, Tim
Subject:	APS Transmission Invoice

Chip,

I have a new critical vendor with a prepetition invoice.  Arizona Public Service provides us critical transmission between the major trading points in the Southwest.  We owe them $43,708.60 for November transmission charges.  They will cut us if we do not pay.  I have explained that this payment needs to go through the creditor's cash approval process.

They can cut us starting tomorrow, but have agreed to a stay if we pay our December invoice of $8,071.20.  I will be faxing this invoice for immediate payment.

Steve


Our Times: Orange County Community News SAN JUAN CAPISTRANO
Rebecca Harris, (949) 248-2154

?
09/14/2000
Los Angeles Times

Orange County Edition
B-5
Copyright 2000 / The Times Mirror Company
?

?
State Sen. Bill Morrow (R-Oceanside) today will discuss electric industry
deregulation at a town hall meeting.
Also on the panel are California Public Utilities Commissioner Carl Wood,
Chris Tooker of the California Energy Commission, San Diego Gas & Electric
vice president of distribution services Steve Davis and Ray Thompson,
Republican policy consultant for energy, utilities and communications in
Sacramento.
?

The meeting is scheduled for 7 p.m., at the San Juan Capistrano Community
Center, 25925 Camino del Avion.
Information: Lisa Smith, (949) 489-9838.


Here are all of the deal numbers that correspond with today's tie point, Cal
PX, and Cal Imbalance deals. I erased the EOL transaction numbers on the
first four, but I believe they were going in a sequence beginning at 627.

Thanks so much for your help on this.

458259
458260
        64
        65
        66 Tie Points
        67
        69
        70

458271
        72 PX
        73

458276
        58 Imbalance


Scott,
This should fit your purposes.  Please call me if you need any clarification
or if it does not meet your needs.

Ben,
This is the same model I sent you back at the beginning of December for your
scenarios with Rodney.  You may be more accessible to help Scott with any
questions that he has though I'm happy to help should you need me.

Thanks
Grant


FYI -

Sally - Bob and/or I will keep you posted on how we get on.  It may be a
better outcome if we can sell our imbalances to AEP as we will have a hard
time resolving them after the Close.

Brian

 -----Original Message-----
From:  Wallis, Janet H.
Sent: Monday, April 16, 2001 8:27 AM
To: Gottlob, Edward; Lamphier, Gary; Villarreal, Elsa; Farmer, Daren J.;
Papayoti, Lee; Redmond, Brian; Hall, Bob; Baxter, Bryce; Martin, Thomas A.
Subject: Bad Debt two (the sequel)

Team,
During out meeting on Thursday, we decided that we would meet once a week in
Brian Redmond's conference room.  Everyone with outstanding  receivables is
invited (that is a nice way of saying Mandatory).  Brian would like for us to
meet every week until the receivables balance is at zero.

Thanks

Next meeting time is:
 Wednesday the 18th
 4:00
 Conference room 3567

Ed, below are the outstanding transportation receivables.
 Mitchell Gas Services, LP  96,960
 Dynegy Marketing 7 Trade  118,892
 Exxon Company USA   73,892
 Entex Gas Marketing   58,127
 PG&E Texas Industrial Energy. LP 200,456


are you free at 3:00 today to go over the aga model?


----- Forwarded by Mark Palmer/Corp/Enron on 07/10/2001 07:47 PM -----

	"Leopold, Jason" <Jason.Leopold@dowjones.com>
	07/10/2001 07:32 PM

		 To: "'pat.dorinson@mirant.com'" <pat.dorinson@mirant.com>,
"'mark.palmer@enron.com'" <mark.palmer@enron.com>
		 cc:
		 Subject: LADWP

=DJ LADWP, Run By Davis Adviser, Cashed In On Calif Crisis

Dow Jones Capital Markets Report via Dow Jones

   By Jason Leopold
   Of DOW JONES NEWSWIRES

  LOS ANGELES (Dow Jones)--On a single day in June 2000, the Los Angeles
Department of Water and Power, the largest municipal utility in the country,
raked in $5 million selling California surplus power for $1,000 a
megawatt-hour
- about 30 times the average price the utility charged the month before.

  That sale, reported by the California Independent System Operator and
confirmed by the LADWP in an interview last June, was one of many instances
in
which the municipal utility cashed in on California's power crisis.

  On Monday, the Department of Water Resources, the agency that has been
purchasing California's bulk power needs in lieu of the state's
cash-strapped
utilities, released a detailed report of spot-market power purchases showing
the
LADWP charged the state an average of $242 a megawatt-hour for power from
Jan.
18 through May 31 this year. That price is about $35 higher than those
charged
by most of the out-of-state generators Gov. Gray Davis has criticized
repeatedly
as price gougers.

  Potentially embarrassing for the Davis administration, however, is that
the
LADWP was formerly run by General Manager David Freeman, who in April became
Davis' top energy adviser.

  Steve Maviglio, press secretary to Davis, said Texas-based generators are
primarily to blame for the high wholesale prices that crippled the state's
two
largest utilities.

  "Anywhere they wear cowboy hats, they probably have handkerchiefs across
their
face, because they are robbing us blind," he said. "The bad guys are clearly
the
out-of-state generators."

  Freeman's trademark is a white Stetson.

  The former LADWP chief, who last September quipped that a "blind pig could
make money" under California's faulty deregulation setup, didn't return
calls
for comment.

  Freeman took a leave of absence from the LADWP in January to negotiate
long-term power contracts on behalf of the state.

     Power To Sell

  According to the DWR report, the LADWP brought in $331 million selling
power
to the state between Jan. 18 and May 31 this year.

  The LADWP, which didn't take part in the state's deregulation debacle and
which isn't under the jurisdiction of federal energy regulators, also cashed
in
throughout 2000. The utility has 7,000 megawatts of generation capacity but
only
needs about 5,500 MW to serve its retail customers, freeing it to sell as
much
as 1,000 megawatts to the ISO at prices comparable to what the generators
were
charging.

  The LADWP did so well that it was able to pay down $200 million in debt
and
will reduce its customers' rates in 2002.

  "It just shows you that enterprise is where you find it," Freeman said in
an
interview last year.

  Last July, ratings agency Fitch concluded that California's electricity
shortage provided LADWP "an opportunity for the sale of surplus power at
favorable prices which added to the municipal system's coffers."

  According to a report by the ISO, manager of the state's electricity grid,
the
LADWP overcharged California for power from May 2000 through February 2001
by as
much as $20 million. Maviglio said the state will pursue refunds from the
utility.

  On Tuesday, an LADWP spokesman defended the utility's power prices, saying
the
costs of producing electricity were extremely high.

  The ISO has estimated that the state was overcharged nearly $9 billion for
electricity sales in the 12 months ended May 2001. On Monday, settlement
talks
between state officials and generators over the refunds broke down.

  Other municipal utilities, including the Sacramento Municipal Utility
District
and private companies like BC Hydro in Canada, have also racked up enormous
sums
selling surplus power to California at the last minute.

  -By Jason Leopold, Dow Jones Newswires; 323-658-3874;
jason.leopold@dowjones.com

  (END) Dow Jones Newswires  07-10-01

  1557EDT

(AP-DJ)--07-10-01 1557EDT
:TICKER: EIX PCG SRE
:SUBJECT: EUTL CA COBO MU PETR
Copyright (c) 2001 Dow Jones and Company, Inc.
Received by NewsEDGE/LAN: 7/10/01 12:57 PM


Attached is the spreadsheet with exchange detail by individual. It's a big
spreadsheet you should go to the Tab
'Detailed Sheet with Exchange Fees'


Hi,

This is another friendly reminder to please submit your information for the Gas Logistics PowerPoint presentation.   I need this information ASAP.

Thanks,
Elizabeth

 -----Original Message-----
From: 	Webb, Elizabeth
Sent:	Thursday, October 11, 2001 9:01 AM
To:	Lamadrid, Victor; Kinsey, Lisa; Sullivan, Patti; Jaquet, Tammy; Greif, Donna; Smith, George F.; Olinger, Kimberly S.; Farmer, Daren J.; Calcagno, Suzanne; Williams, Jason (Trading)
Cc:	Superty, Robert; Newton, Lisbet; Garcia, Clarissa; Schrab, Mark L.
Subject:	RE: Logistics PowerPoint presentation

Hi All,

This is just a friendly reminder that I need the information for the Gas Logistics PowerPoint presentation by tomorrow, Friday, October 12th.

Thanks for your time and assistance.   Please call me with any questions.

Thanks,
Elizabeth
x51694
 << File: Gas Logistics PowerPoint1.ppt >>  Presentation is located at O:/Logistics/Management/Presentations/Gas Logistics PowerPoint1.ppt

 -----Original Message-----
From: 	Webb, Elizabeth
Sent:	Thursday, October 04, 2001 2:56 PM
To:	Lamadrid, Victor; Kinsey, Lisa; Sullivan, Patti; Jaquet, Tammy; Greif, Donna; Smith, George F.; Olinger, Kimberly S.; Farmer, Daren J.; Calcagno, Suzanne; Williams, Jason (Trading)
Cc:	Superty, Robert; Newton, Lisbet; Garcia, Clarissa; Schrab, Mark L.
Subject:	Logistics PowerPoint presentation

Hi All,

Per the discussion at today's staff meeting, I would like you all to review the attached presentation and put in general information for your particular desk/cost center in the respective slides.   I have one slide for each desk/cost center called " Desk/Cost Center X Information" and another called "Asset Management Deals" if this is applicable to you.

Please return the attached presentation with your additions and/or changes to me by Friday, October 12th.    Please call me if you have any questions or concerns.

Also, please feel free to utilize me as a resource for any PowerPoint presentations, data gathering that you may need done.

Thanks,
Elizabeth

Presentation is located on O:/logistics/management/Gas Logistics PowerPoint1

 << File: Gas Logistics PowerPoint1.ppt >>
Elizabeth Webb
elizabeth.webb@enron.com
713-345-1694


Kevin,
No prolem.

Vince

Kevin G Moore
07/27/2000 02:12 PM
To: Shirley Crenshaw/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Mike A
Roberts/HOU/ECT@ECT
cc:
Subject: LAST DAYS

Soon we will be losing two members of the Research
    group.
They are not leaving the same day however ,a same
day celebration will cut cost somewhat.

Please let me know ,

Alexios leaves on Monday - July 31
and Farouk will soon follow.

     (menu)
Peach cobbler
ice cream
fruit tray

Please inform before Monday..

Thanks

                                                                      Kevin
Moore


---------------------- Forwarded by Scott Neal/HOU/ECT on 02/01/2001 05:31 PM
---------------------------

	Enron North America Corp.

	From:  Corporate Payroll @ ENRON                           01/29/2001 10:45 PM

Sent by: Enron Announcements@ENRON
To: All Eligible Enron Employees United States
cc:
Subject: New Employee Service ) Turbo Tax

As tax season rapidly approaches, we are pleased to announce a new W-2
employee service.  If you plan to file your personal income taxes through
TurboTax 2000 (Intuit's personal tax filing software) you will be able to
automatically download your W-2 information into the appropriate TurboTax
forms directly over the Internet for free.

Enron has chosen to provide this service to help speed the processing time
and accuracy of your return while supporting paperless processing.

More information regarding this service is listed below or visit
www.probusinesstaxes.com to find out more about the TurboTax software and
Web-based filing service.

Employee Fact Sheet: ProBusiness/Intuit W-2 service

Q.  What is the Automated Tax Return (ATR) service?
A. Intuit Inc., makers of the popular Quicken TurboTax tax preparation and
filing software, have launched a new Automated Tax Return (ATR) service to
simplify tax preparation for TurboTax users. ATR allows users of TurboTax tax
preparation and filing software to import tax information from multiple
sources such as employers, brokerage houses, and mutual fund companies
directly into the correct TurboTax forms over the Internet.  Since our
payroll tax provider, ProBusiness, has partnered with Intuit to provide this
service, you will be able to electronically download your individual W-2 data
from ProBusiness directly into TurboTax through the Internet for free. Also,
as part of this program, you can receive a  5% discount on all TurboTax and
Quicken products including shipping and handling (go to
www.probusinesstaxes.com for more information).

Q. So how does it work?
A. Embedded in each version of TurboTax 2000 (both the software and web
application) is a series of screens that will ask whether your employer
allows you to automatically download your data into TurboTax.  To use the
free service, simply answer "yes" then select our payroll tax provider,
ProBusiness, from a drop-down list of providers which includes ProBusiness,
PeopleSoft, Ceridian, and seemyw2.com.  Validate your request by entering
your social security number and W-2 box one data and your W-2 data will
automatically transfer via the Internet into the appropriate locations in the
TurboTax form.

Q. Is this a secure transaction?
A.  Intuit,s TurboTax ATR service combines Open Financial Exchange (OFX), the
standard technology used in e-finance, with 128-bit military-grade encryption
to create an advanced security protocol that ensures the highest level of
security and confidentiality when obtaining financial data to populate your
TurboTax form over the Internet.

Q. How do I participate in this program?
A.  Only employees using Intuit,s TurboTax 2000 tax preparation and filing
software can take advantage of this Web-based ATR service.  TurboTax software
and the ATR Web-based filing service can be accessed at
www.probusinesstaxes.com.

Q. What if I already own TurboTax 2000(does this still work?
A. Yes, all copies of TurboTax 2000 contain the Automated Tax Return service
option.

Q. Overall what are the Benefits to me?
A.  Using the ATR service provided by Intuit and ProBusiness, you can:
? Increase your probability of accurate filing.
? Eliminate the need to manually enter your W-2 information and other
financial data.
? Increase the overall speed of tax filing.


-----Original Message-----
From: 	Rodriguez, Grace
Sent:	Friday, November 09, 2001 4:14 PM
To:	Mumm, Chris; Reyes, Jim; Presto, Darin; Linder, Eric; Runswick, Stacy; Coffing, Timothy; Merriss, Steven; Dean, Craig; 'janders3@enron.com'; Mier, Michael; Blair, Kit; Driscoll, Michael M.; Purcell, Mike; Merten, Eric; Gilbert, Scotty; Wente, Laura; Hall, Steve C. (Legal)
Cc:	Kearney, Julie; 'numbers@numbersintoknowledge.com'
Subject:	FEEDBACK REQUESTED: Tricks of the Trade (11.8.01)

Hello all!

Jon Koomey, the instructor for your Tricks of the Trade (Energy Math) course, has requested participant feedback regarding his class. If you have any comments or suggestions, please e-mail Jon at numbers@numbersintoknowledge.com and copy me as well.

For your convenience, I have included questions from other course evaluations to help guide your thoughts. Feel free to include other comments or suggestions.

Was the presentation of information clear and at the right level of detail?  Did the presenter keep the course interesting?
For a course held entirely in one day, the level of detail was effective.  The course was interesting with the real life examples and the challange problem solving in groups.  The visual aids could use some improvement.  I have no specific ideas, but I found the consistent nature of the material to create a lull in the presentation.
Were there any topics discussed that you would have liked greater detail on?
Current events.  I liked the bit on the Kyoto Treaty
Were there any topics covered that you did not find beneficial or relevant?
I've systematically erased them from my memory...too late to recall
Were there any topics that you would have liked information on that were not included in the seminar?
Currency conversions as they relate to production costs
Did you find the group and individual exercises useful?  Do you have any changes or recommendations for the exercises that you would have found more beneficial?
The individual exercises were the most useful.  It encourages the attendees to work together and think through a problem.
How well was the day structured?  For example, did the course cover too much or too little information, would you have preferred more or less group work, etc.
More group work.  Although you are limited w/one day groups
On a scale of 1 to 10 (10 being the best), how would you rate this course for usefulness and relevance to your work?
8.5
Other Comments:
      Good course...I was a bit worried in the first hour as we focused on compilation errors for data gathering
If you have any questions, please let me know!

Regards,
Grace
x8321

 -----Original Message-----
From: 	Rodriguez, Grace
Sent:	Wednesday, November 07, 2001 6:39 PM
To:	Mumm, Chris; Reyes, Jim; Presto, Darin; Linder, Eric; Runswick, Stacy; Coffing, Timothy; Merriss, Steven; Dean, Craig; 'janders3@enron.com'; Mier, Michael; Blair, Kit; Driscoll, Michael M.; Purcell, Mike; Merten, Eric; Gilbert, Scotty; Wente, Laura; Hall, Steve C. (Legal)
Cc:	Kearney, Julie
Subject:	REMINDER: Training Opportunity--Tricks of the Trade (11.8.01)

Last e-mail:

If you are reading this e-mail on Thursday, 11.8.01, and it is past 9:00am: You are late for your Tricks of the Trade course! If you're wondering where to go:

Where:	2WTC Oregon Room--Skybridge to 2WTC and down one level. Enter double doors, veer left. Room is in the right corner.
Time:	9:00am until roughly 5:00pm (breakfast at 8:45am, lunch provided.)
Bring:	Pen (or pencil) and paper

Have fun!

-Grace
x8321

 -----Original Message-----
From: 	Rodriguez, Grace
Sent:	Tuesday, November 06, 2001 8:25 PM
To:	Mumm, Chris; Reyes, Jim; Presto, Darin; Linder, Eric; Runswick, Stacy; Coffing, Timothy; Merriss, Steven; Dean, Craig; 'janders3@enron.com'; Mier, Michael; Blair, Kit; Driscoll, Michael M.; Purcell, Mike; Merten, Eric; Gilbert, Scotty; Wente, Laura; Hall, Steve C. (Legal)
Cc:	Kearney, Julie; Jarnagin, Josie
Subject:	CONFIRMING: Training Opportunity--Tricks of the Trade (11.8.01)

Howdy all!

I am just confirming your participation at the Tricks of the Trade (Energy Math) course this Thursday, November 8th. If you have any conflict with attending the course (9:00am-5:00pm, roughly), please let me know ASAP.

I will be distributing some pre-course reading material. While it is not required to complete it prior to the course, it would be very helpful in understanding the class.

If you have any questions, please let me know!

Regards,
Grace
x8321

============================

Tricks of the Trade for Analysts in the Energy Biz
Presented by Jonathan Koomey, PhD, Staff Scientist, Lawrence Berkeley National Lab

Date: 	Thursday, November 8th, 2001
Time:	9:00 am - 5:00 pm
Location:  	2WTC, Oregon Room
To bring:	Pen and paper, precourse reading material
Other info:	Course materials will be provided at the start of class
		Breakfast and lunch available both days

Course Outline:
Put facts at your fingertips:  Key references and data sources.
Understanding data:  Pitfalls in data acquisition and handling.
Introduction to back of the envelope calculations.
Summary of US and Western electricity systems.


I forwarded it to him--you had "eng" twice--it should be only once.

Piper

From: Jeff.Dasovich@enron.com
Subject: Background for Enron Solution to California's Electricity
Crisis--Follow up from Meeting on 5.10.01
To: piper.cole@sun.com
Cc: Karen.Denne@enron.com
Date: Mon, 14 May 2001 12:07:10 -0500
X-MIMETrack: Serialize by Router on ENE-MTA01/Enron(Release 5.0.6 |December
14,
2000) at 05/14/2001 12:02:08 PM
MIME-Version: 1.0
Content-Disposition: inline

Hi Piper:
The email I sent on Friday to Scott McNealy's address (listed below) got
bounced back to me.  Just wanted to make sure that you folks received the
materials.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 05/14/2001 12:05 PM -----

Jeff Dasovich
Sent by: Jeff        To:     scott.mcnealy@engeng.sun.com,
Dasovich             piper.cole@sun.com
cc:     Kenneth Lay/Corp/Enron@ENRON,
skean@enron.com, Karen
Denne/Corp/Enron@ENRON
05/11/2001           Subject:     Background for Enron
Solution to
08:32 PM             California's Electricity Crisis--Follow
up from
Meeting on 5.10.01

Attached is additional background on the solution that Ken Lay discussed
today and that Enron is proposing as a comprehensive solution to
California's electricity crisis.  If you have any  questions, don't
hesitate to contact me at 415.782.7822 or on my pager at 888.916.7184.

Best regards,
Jeff
(See attached file: California Electricity Solution 0510.doc)

_____________________________________________________________________
_______
/______/\  Piper Cole
/_____ \\ \  Vice President, Global Public Policy
/______\ \\ /  Sun Microsystems, Inc.
/______/ \/ / / 901 San Antonio Road, MS PAL1-554
/______/ /   \//\ Palo Alto, CA 94303
\______\//\   / /
\______/ / /\ / Phone: 650/336-6633
\______/ \\ \  Fax:   650/336-0835
\______\ \\  E-Mail: piper.cole@sun.com
\______\/  http://www.sun.com/policy


This is to confirm the meeting that is scheduled today at 3:00 pm Central Time in EB3321 regarding Enhanced Limit Orders.  I will call Portland and Calgary.

The attendees are:

John Arnold
Tom Martin
Mike Grigsby
Phillip Allen
Scott Neal
Hunter Shively
John Zufferli
Kevin Presto
Tim Belden
Fletch Sturm
Dana Davis
Mike Swerzbin

Please let me know if you have any questions.

Thanks

Kim Hillis


NYMEX Membership Services
June 1, 2001
Notice # 00-042

SWITCH OF LESSOR

Please be advised that effective with the close of business, June 1, 2001,
the following member(s) will switch their lessor within the Exchange:

Brian O,Neil (ADB-508)

SWITCH OF STATUS

Please be advised that effective with the close of business, June 1, 2001,
the following member(s) will switch their status within the Exchange:

John Ketcham (JKAY-4667) from a Licensee Member to a Full Member with a
qualified trader guarantee provided by Man International, Inc.

NOTICE OF INTENTION TO TRANSFER

Please be advised that effective with the close of business, June 1, 2001,
the following member(s) have given notice of intention to transfer their sole
membership privileges:

Oliver Alma (OLVR-3260)

 Members and Member Firms have (10) days from the date of this notice to
advise the Corporate Secretary,s Office of any claims in accordance with Rule
2.51.

Inquiries regarding the above should be addressed to the Member Services
Department at 212-299-2379.

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

"http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&
refdoc=(MS-42)"

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


Jeff, I discovered this on my email this morning (I couldn't sleep).  I
didn't know where you were on the numbers for the presentation but I thought
I would forward this to you know.  I hope you already had what you needed
here since i am sure it is too late.

Mike
---------------------- Forwarded by Mike McConnell/HOU/ECT on 07/23/2000
08:10 AM ---------------------------

Craig Chaney
07/21/2000 12:40 PM
To: Mike McConnell/HOU/ECT@ECT
cc: Bryan Seyfried/LON/ECT@ECT
Subject: EnronCredit.com Market Size Data

Mike,

Bryan Seyfried asked me to send this information to you regarding our
estimated market size.

Total Market Size:  $1 Trillion Existing Credit Derivative Market
EnronCredit.com Market Share:  $10 Billion
Margin from Market Share: 1.7%

By Sunday afternoon we hope to be able to send you off some graphs that
depict the expected growth over time.  If you have any questions please email
us.  We'll be working this weekend.

Thanks,

Craig Chaney
EnronCredit.com
http://www.enroncredit.com


Oversight.  No other reason.  Thanks for noticing and letting me know.

Best,
Jeff

	James D Steffes
	05/21/2001 04:03 PM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: Re: More Info: PG&E to Announce Open Season on Redwood and Baja
Early Next Week

Jeff -

Why don't you send this also to Phillip Allen?

Jim

From: Jeff Dasovich on 05/18/2001 12:24 PM
Sent by: Jeff Dasovich
To: Stephanie Miller/Enron@EnronXGate, Barry Tycholiz/Enron@EnronXGate, Chris
H Foster/Enron@EnronXGate, Jeffery Fawcett/Enron@EnronXGate, Steven
Harris/ET&S/Enron@ENRON, Leslie Lawner/NA/Enron@Enron, Rebecca W
Cantrell/HOU/ECT@ECT, skean@enron.com, Richard Shapiro/NA/Enron@Enron, James
D Steffes/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Sandra
McCubbin/NA/Enron@Enron, Donna Fulton/Corp/Enron@ENRON, Joe
Hartsoe/Corp/Enron@ENRON, Shelley Corman/Enron@EnronXGate, Julie A
Gomez/Enron@EnronXGate, Laird Dyer/SF/ECT@ECT, Michael McDonald/SF/ECT@ECT,
David Parquet/SF/ECT@ECT, Samuel Wehn/HOU/ECT@ECT, Alan
Comnes/Enron@EnronXGate, Christopher F Calger/Enron@EnronXGate, Tim
Belden/Enron@EnronXGate, Robert Badeer/Enron@EnronXGate, Paul
Kaufman/Enron@EnronXGate
cc:

Subject: More Info: PG&E to Announce Open Season on Redwood and Baja Early
Next Week

PG&E will announce via press release very early next week an open season on
Redwood, Baja and Silverado.
It comes in direct response to recent announcements of expansions into
California by pipelines.
The bid protocols will be structured similar to original open season from the
original Gas Accord.
The open season will start on June 1 and end on July 31.
Capacity will be available starting 1.1.03.
Bidders will be able to bid up to 30 years (PG&E states that that's what
generators want).
Accompanying the announcement will be another announcement that PG&E will
expand Redwood by 200mmcf/day, which they hope to have available by 1.1.03,
or some time during Q103.
About 2-4 weeks after the open season begins, PG&E will file its proposed
"Gas Accord II,"  (the first one expires end of 02).
As part of that filing, PG&E will offer its proposed ratemaking treatment for
the next five years (beginning 1.1.03).
PG&E will not include in the open season 1) core capacity and 2) certain EAD
contracts that extend beyond the Gas Accord 1 end date.
In addition, PG&E will hold back an additional 20% (after excluding core and
EAD), to be "open-seasoned" at some "future" date.
The capacity to be auctioned is: 1) 900 mmcf/day on Redwood, 2) 245 (annual)
on Baja, plus an additional 200/day in summer on Baja, 3) 155 on Silverado.
How PG&E will market the 20% they intend to hold back, and when they might
auction it off in the future will be discussed in PG&E's Gas Accord II filing.
No single company will be awarded more than 30% of the capacity on any
specific path in the primary open season (though firms can bid whatever level
of capacity they choose).

Please forwad along to anyone else who might be interested.  If you have any
questions, just holler.

Best,
Jeff


Why are you sending this e-mail out?

	Enron Energy Services

	From:  Anthony Tran @ EES                           04/11/2001 09:35 AM
	713-345-3002

To: Chad Landry/HOU/ECT@ECT@ENRON
cc: All Enron Employees United States@ENRON,
IMCEANOTES-iBuyit+40ENRON@ENRON.com, Marc Pederson/Contractor/Enron
Communications@ENRON COMMUNICATIONS, Sheila A Knudsen/ENRON@enronXgate
Subject: RE: Reply Requested: Do You Code Or Approve Invoices?

Mine too...!!! PLEASE

Anthony Tran,

IBM Global Services, Enron Account
Mid-Range Servers, Team Lead
Pager: 1-800-759-8888.  PIN # 1030383
Tel. 713-345-3002 (Office).  713-345-3337  (Fax).
IBM Email : tonytran@us.ibm.com

Personal Homepage:

http://www.geocities.com/u69076/

	Chad Landry@ECT
	04/11/01 09:17 AM

		 To: Marc Pederson/Contractor/Enron Communications@ENRON COMMUNICATIONS@ENRON
		 cc: Sheila A Knudsen/ENRON@enronXgate@ENRON, All Enron Employees United
States@ENRON, IMCEANOTES-iBuyit+40ENRON@ENRON.com@ENRON
		 Subject: RE: Reply Requested: Do You Code Or Approve Invoices?

Take me off this list, PLEASE.

CKL

From: Marc Pederson@ENRON COMMUNICATIONS on 04/11/2001 09:12 AM
To: Sheila A Knudsen/ENRON@enronXgate@ENRON
cc: All Enron Employees United States@ENRON,
IMCEANOTES-iBuyit+40ENRON@ENRON.com@ENRON
Subject: RE: Reply Requested: Do You Code Or Approve Invoices?

No I do not.


To:  Enron Corporate Policy Committee:

Please review the attached memo outlining business-wide cost saving
opportunities.  Please forward any comments that you have to Suzanne Brown
via email by close of business on Wednesday, June 6th.


Dear Steve:  The Texas Railroad Commission doesn't have anything in its records that certain assets held by the subject company were divested to KN Processing, Inc., a subsidiary of KN Energy, Inc. on 3/31/1997.  We've tried to tell the Texas Railroad Commission that we no longer own this company, but since KN hasn't filed the proper reports for a number of wells for which it is shown to be a gas nominator and/or gas gatherer, the Commission is still looking to us to file reports like the P-5 for this entity.

Do you remember who handled the sale of this company to KN Processing, Inc.?  I don't know where to begin to do the research about this company or these wells.

Please advise, and thanks,
Mary
x37796


I meant 2001.

Scott Neal
10/24/2000 10:25 AM
To: Jared Kaiser/HOU/ECT@ECT, Tammi DePaolis/Corp/Enron@ENRON, Robin
Barbe/HOU/ECT@ECT, John Craig Taylor/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT
cc:
Subject: 2000 top target customers

I would like each of you to list your top 5-10 target customers for 2000 by
12pm tomorrow.  Please let me know if you have any questions.


** URGENT NOTIFICATION:  SI Server will be
UNAVAILABLE, Today, Wednesday, August 1, 2001 (14:20 to 14:55pdt) to Perform
a Fallback to our backup SI server in Alhambra.

			Please submit all Hour Ahead schedules for August
1st  HE , 1800 and 1900 and Supplemental Energy schedules for, 1700 and 1800
prior to 1400.

				Once the fallback is complete and the SI
system is available, Please clear your memory and disk caches (Edit,
Preferences, Advanced, Cache) & close all Netscape windows (including
messages).  Restart Netscape and point your browsers to our Backup server by
utilizing the following URL: https://alhibk1b/iso.

				Please contact Benik DerGevorgian (916)
351-2277 bdgevorgian@caiso.com or Michael Glatz (916) 608-5727
mglatz@caiso.com if you have any questions or concerns.

				Thank you,
				ISO Market Operations

Client Relations Communication
CRCommunications@caiso.com


---------------------- Forwarded by Richard B Sanders/HOU/ECT on 07/06/99
03:30 PM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Office Chairman @ ENRON                           07/01/99 12:33 PM

To: Enron Worldwide
cc:
Subject: Organizational Changes

Interoffice
Memorandum

Enron's performance has been exceptional.  This performance is reflected in
our stock price, in the recognition we receive in the media and financial
communities, and, most importantly, in the enthusiasm of our people.  It has
been clear to us for some time that we are driving fundamental change in the
marketplace and that our natural gas, electricity and communications networks
can be positioned for even greater growth.  A &new economy8 is emerging, an
economy based on intellectual capital and the compelling economics of
networks.  Capturing the opportunities in this new economy calls for
increased coordination and integration across our wholesale (ECT, ECM, EI),
retail (EES), and communications (ECI) businesses.  It is our intention to
combine the operations of these businesses into a cohesive organization that
will ensure we realize the growth we foresee in all our businesses.

To this end, we are initiating a number of organization and staffing changes
in these businesses and related changes in the Enron Office of the Chairman,
in Corporate Staff groups, and in a number of management/personnel
committees.  Other business units, EOG, GPG, PGE, and Azurix, will not be
directly affected.  Accordingly, the following changes are effective
immediately.

Enron Office of the Chairman

Joe Sutton will join the Office of the Chairman as Vice Chairman.  In his new
role, Joe will work with the two of us to manage the operations of the
company.

Rebecca Mark, previously Vice Chairman of the company, will now fully
concentrate on her responsibilities as Chairman and CEO of Azurix, our most
recent public company. Rebecca has also been elected to the Enron Board of
Directors, effective today.

Ken Harrison, previously Vice Chairman of the company, will fully concentrate
on his responsibilities as Chairman and CEO of Portland General Electric and
Non-Executive Chairman of Enron Communications.  Ken will continue to serve
on Enron's Board of Directors.

Redefined Business Units

ECT, ECM, EI, EES, and ECI will be regrouped into eight regions/businesses
and five global functions.  Each region/business will be operated as an
independent entity but will coordinate staffing, career paths, compensation
and performance review across all units.  Each global function will provide
its specialized expertise across all regions/businesses.  Included in these
functions is a new technology function, which will focus on information
systems and growth of our e-commerce capabilities where we believe there is
enormous potential.  These organizational units and their leadership are as
follows:

 Regions/Businesses

 North America:  Cliff Baxter, CEO; Kevin Hannon, COO
 Europe:  Mark Frevert, CEO; John Sherriff, President; Dan McCarty, COO
 South America: Jim Bannantine, Co-CEO; Diomedes Christodoulou, Co-CEO
 India:  Sanjay Bhatnagar, CEO
 Caribbean, Middle East:  David Haug, CEO
 Asia, Africa:  Rebecca McDonald, CEO
 EES:  Lou Pai, CEO; Tom White, Vice Chairman
 ECI:  Joe Hirko, Co-CEO; Ken Rice, Co-CEO (Ken Harrison ) non-executive
Chairman)

 Global Functions

 Risk Management:  Greg Whalley, CEO
 Finance:  Andy Fastow, CFO; Jeff McMahon, Treasurer
 Asset Operations:  Kurt Huneke, CEO
 EE&CC:  Larry Izzo, CEO
 Technology:  Mike McConnell, CEO

Corporate Staff

All corporate and EI staff units will be regrouped into six corporate staff
groups.  These staff groups will support all operations of Enron.  These
organizational units and their leadership are as follows:

 Legal:  Jim Derrick, EVP and General Counsel; Rob Walls, SVP and Deputy
General Counsel
 Risk Assessment and Control:  Rick Buy, EVP
 Accounting and HR:  Rick Causey, EVP and Chief Accounting Officer
 Investor Relations:  Mark Koenig, EVP
 Other Staff Groups:  Steve Kean, EVP and Chief of Staff
 Corporate Development:  To be determined.

Committees

A new Executive Committee will be formed to replace the existing Management
and Operating Committees.  Membership will be as follows:

 Ken Lay, Chairman
 Jeff Skilling, Alternate Chairman
 Joe Sutton
           Stan Horton
Jim Bannantine         Kurt Huneke
 Cliff Baxter         Larry Izzo
 Sanjay Bhatnagar        Steve Kean
Rick Buy         Mark Koenig
 Rick Causey         Rebecca Mark (Ad hoc)
 Diomedes Christodoulou        Mike McConnell
 Jim Derrick         Rebecca McDonald
 Andy Fastow         Jeff McMahon
 Peggy Fowler         Lou Pai
 Mark Frevert         Mark Papa (Ad hoc)
 Kevin Hannon         Ken Rice
 Ken Harrison         John Sherriff
 David Haug         Greg Whalley
 Joe Hirko         Tom White

Four other committees, which will be essential to the success of this new
organization, will be formed.  These committees are:

 Managing Director and SVP Personnel Committee:  Jeff Skilling, Chairman
 Vice President Personnel Committee:  Kevin Hannon, Chairman
 Vision and Values Committee: Joe Sutton, Chairman
 Workforce Diversity:  Ken Lay, Chairman

Details of membership on these committees will follow shortly.

Summary

Over the next several weeks all of the specifics of this reorganization will
be further ironed out and communicated.  In the meantime, please bear with us
-  we are confident that these changes will have a significant, positive
impact on the operation and growth of the company.


I just wrote on our confirm that we are in agreement to trade date 12/4/00
per Matt Motley and faxed it back to Powerex for the records and kept fax
transmittal, and sent it off for filing.  Just letting you know.  Thanks

   Kate Symes                12/19/2000 11:26 AM

To: Stephanie Piwetz/HOU/ECT@ECT
cc:
Subject: Re: 12/4 term

I've changed the term to 12/4, and I'm going to make a note in our daily deal
correction report that this was due to a late report from EES. Thanks for
catching this.

Kate

Stephanie Piwetz   12/19/2000 09:02 AM

To: Kate Symes/PDX/ECT@ECT
cc:

Subject: 12/4 term

Kate, below is the EES spreadsheet that has the shows the powerex trade shown
on 12/4/00.  Please verify and we can backdate the trade and reconfirm the
document, or we can initial Powerex change and send back to them to show that
we are in agreement.  Thanks Stephanie

---------------------- Forwarded by Stephanie Piwetz/HOU/ECT on 12/19/2000
10:54 AM ---------------------------

Jubran Whalan@EES
12/04/2000 04:42 PM
To: Daily Term Hedges for EES Portfolio
cc:
Subject: 12/4 term

CHECK CAREFULLY ONE COB TRANSACTION IS NORTH TO SOUTH AND ONE IS SOUTH TO
NORTH.


Start Date: 3/8/01; HourAhead hour: 11;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030811.txt

---- Energy Import/Export Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 3/8/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_WATER
  ENGY_TYPE: FIRM


---------------------- Forwarded by Eric Bass/HOU/ECT on 08/31/2000 12:05 PM
---------------------------

"Brett Lawler" <brettlawler@hotmail.com> on 08/31/2000 03:34:13 AM
To: a_diekman@hotmail.com, chris_a_regnier@yahoo.com, John9375@aol.com,
CHMARGAU@aol.com, srhea@acm.org, Eric Bass/HOU/ECT@ECT
cc:
Subject: Fwd: Fw: Professional Quiz

>From: "Christine Lane" <cll@prodigy.net>
>To: "brett lawler" <brettlawler@hotmail.com>
>Subject: Fw: Professional Quiz
>Date: Thu, 10 Aug 2000 18:42:05 -0000
>
>
>----- Original Message -----
>From: Diane Zarembo <diane@harrisonpersonnel.com>
>To: Micah Gartman <bingham@pdq.net>; Chris Lane <cll@prodigy.net>; Lauren
>Lawler <l.lawler@mail.utexas.edu>; Chris Bell
><chris@harrisonpersonnel.com>;
>Christy Kersh <christy@harrisonpersonnel.com>
>Sent: Thursday, August 10, 2000 6:10 PM
>Subject: Fw: Professional Quiz
>
>
> > This has absolutely just made my day! Check it out---it's great!  It was
> > sent to me by a manager at St. Luke's Hospital that I work with.
> >
> > Diane Zarembo
> > Harrison Personnel
> > (713) 960-9906, ext. 112
> > ----- Original Message -----
> > From: "Daniel Davies" <zdxd02@sleh.com>
> > To: <lenamaris@aol.com>
> > Sent: Thursday, August 10, 2000 8:27 AM
> > Subject: Professional Quiz
> >
> >
> > The following short quiz consists of 4 questions and tells whether you
>are
> > qualified to be a "professional".  Scroll down for each answer.
> >
> > The questions are not that difficult.
> >
> > 1. How do you put a giraffe into a refrigerator?
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > The correct answer is:
> > Open the refrigerator, put in the giraffe and close the door.
> > This question tests whether you tend to do simple things in
> > an overly complicated way.
> >
> > 2. How do you put an elephant into a refrigerator?
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > Wrong Answer:
> > Open the refrigerator, put in the elephant and close the refrigerator.
> >
> > Correct Answer:
> > Open the refrigerator, take out the giraffe, put in the elephant
> > and close the door.  This tests your ability to think through
> > the repercussions of your actions.
> >
> > 3. The Lion King is hosting an animal conference.  All the animals
>attend
> > except one.  Which animal does not attend?
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > Correct Answer:
> > The Elephant. The Elephant is in the refrigerator.  This tests your
> > memory.
> >
> > OK, even if you did not answer the first three questions correctly, you
> > still have one more chance to show your abilities.
> >
> > 4. There is a river you must cross. But it is inhabited by crocodiles.
>How
> > do you manage to cross it?
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > Correct Answer:
> > You swim across. All the Crocodiles are attending the Animal
> > Meeting. This tests whether you learn quickly from your mistakes.
> >
> > According to Andersen Consulting Worldwide, around 90% of the
>professionals
> > they tested got all questions wrong.
> >
> > But many preschoolers got several correct answers.  Anderson Consulting
>says
> > this conclusively disproves the theory that most professionals have the
> > brains of a four year old.
> >
> >
> >
>

_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

Share information about yourself, create your own public profile at
http://profiles.msn.com.


----- Forwarded by Jeff Dasovich/NA/Enron on 04/30/2001 04:30 PM -----

	Scott Govenar <sgovenar@govadv.com>
	03/01/2001 05:47 PM

		 To: Jeff Dasovich <jdasovic@enron.com>
		 cc:
		 Subject: Hertzberg

Here is the revised Hertzberg memo.

Speak to you soon.

Scott

 - Hertzberg final.doc


Vincent Kaminski,

You should have received a fax over the Labor Day weekend regarding our
upcoming Sports Tournament.  If you did not receive it, please visit our
website at www.houstonenergy.org and go to the "next scheduled event", or
just go directly to http://www.houstonenergy.org/public/sportscover.doc. for
all the information you need.  Hope to see you there and don't delay in
sending in your registration!

-----------------------------------------------------------
This message was sent by:

Teresa Knight, Executive Director
Houston Energy Association (HEA)
Phone: (713) 651-0551
Fax: (713) 659-6424
tknight@houstoneneryg.org

If you would like to have your email address removed from our mailing list,
please click the link below to the HEA Home page, where you will find a
mini-form to remove your name automatically.

http://www.houstonenergy.org/

If you did not receive the attached file or it was corrupted, you can find it
at: http://www.houstonenergy.org/public/


Euromoney stopped doing their great seminar a few years back.  We have not
yet found any other seminar that equals it.  I'll keep my eyes posted,
though.

	Alan Aronowitz
	10/25/2000 04:16 PM

		 To: Tana Jones/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
		 cc:
		 Subject: ISDA Master Documentation Workshop

Are either of you aware of any master documentation workshops being offered
in NYC or London in the next few months that would be worthwhile for Jane
McBride to attend?  I remember several years ago going to a program that
Euromoney (or Eurocurrency) put on for 2-days focusing on ISDA's.

Please advise. Thanks.


- MidC.xls


Kathy,

I will be out of town on Thursday and Friday, and will therefore be unable to
attend.

Thank you,

Kay


It looks like one of our schedules got cut. I'm checking with Phil Platter on
this one, and I'll let you know when I find out.

Kate

Stephanie Piwetz   04/02/2001 12:00 PM

To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Deal 565759.01

Kate, please check, deal 565759.01, I verballed the trade with APB on Friday
3/30/01
Enron Sells Idaho
4/2-4/2
220.00    total mw s400
sp 15

Looks like it has been changed, each hour a different mw.
Please let me know the details.
Thanks
Stephanie