---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001
10:05 PM ---------------------------

Peter Styles@ECT
06/01/2001 04:58 AM
To: Brendan Devlin/EU/Enron@Enron
cc: Richard Shapiro/NA/Enron@Enron

Subject: EFET draft security of supply paper

Take a look at attachment below for guidance in any discussion with Ristori
next Wednesday re Bush energy policy statement and comparative aspects of EC
green paper on sec. of supply. To remind you of what Loyola said on CNN
yesterday:
 - Agrees with need to re-evaluate role of nuclear plus future investment in
it .
 - Disagrees with weight given to supply side and indigenous sources,
compared with demand side and fuel diversity (also from external sources?)
 - Disagrees with exclusion of climate change considerations.

---------------------- Forwarded by Peter Styles/LON/ECT on 06/01/2001 10:25
AM ---------------------------

brian.samuel@txu-europe.com@txu-europe.com on 04/23/2001 02:31:45 PM
To: "EFET Secretariat" <secretariat@efet.org>
cc: peter.styles@enron.com

Subject: EWG - security of supply paper

Jan, please find a revised draft of the SoS paper following discussions with
Peter. I would be grateful if you could circulate it to the members of the
electricity working group for comment by 30th April. Likewise could you also
forward it to Ian Wood.
(See attached file: efetsos.doc)

Thanks Brian

~~~~~~~~~~~~~~~~~~~~~    DISCLAIMER    ~~~~~~~~~~~~~~~~~~~~~

This E-mail is private and confidential and may be covered by
legal professional privilege. It is therefore only intended for
the addressee(s). If you are not one of those persons you must
not read, copy, store, disclose, use or distribute its contents.
Please also contact the sender immediately and delete the original.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 - efetsos.doc

---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001
10:05 PM ---------------------------
From: Bruno Gaillard/Enron@EUEnronXGate on 06/01/2001 07:07 PM GDT
To: Richard Shapiro/NA/Enron@Enron
cc:

Subject:  Background Information France Electricity

Background

The Continental European electricity market is developing from an integrated
monopoly business to a competitive market. A segment of electricity users now
have the right to choose their supplier from a range of marketers. The
emergence of new marketers and generators has created the demand for price
risk management solutions and has encouraged the development of a traded
wholesale market. Following the adoption of the EU Electricity Directive in
December 1996, member states were obliged to transpose the directive into
national legislation opening electricity markets to competition by February
1999.

The directive sets out a three-tiered approach to the liberalisation of
electricity supply markets. Stage one entered into effect on 19 February
1997, and calls for the opening of 22% of national markets, based on the
average community share of electricity consumed by end customers using more
than 40 GWh per year. The degree of opening will increase over six years by
lowering the community consumption threshold to 20 GWh in 2000 (27% market
opening) and to 9 GWh in 2003 (32-33% market opening). Distributor access is
a matter for each member state. The implementation of a new directive,
expected in 2002, will improve the conditions for a liberalized market.

At present, the level of compliance with the directive varies between member
states. The EU countries farthest along the process of liberalisation are
Germany, Austria, Spain and the Netherlands. Switzerland, although it is not
an EU member state, is integral to market developments. France, although
having chosen to comply with the minimum requirements of the directive, has
proven to open up their market more than expected.

Current Market

EDF is the dominant electricity producer in France, the largest power
producer in the world with 475TWh generated in 2000,  and the largest
exporter in Europe (net exports reached 71 TWh in 2000).  Power generation in
France is mainly nuclear (70%), but also hydro (20%), while conventional
thermal generation represents 10%. EDF is a vertically integrated company
with services and products in generation (92%), supply (?%), transmission and
distribution (95%). Finally, this historical supplier is a State Entity; the
French State owns EDF,s capital.  A few Independent Power Producers (IPP) are
also active in the market, such as Snet (6.4TWh, coal-fired), and CNR (16TWh,
hydro). Other smaller IPPs are commercially active but most must sell their
production to EDF under a regulated tariff.

More than 100 distribution companies are active through a concession regime
in their local distribution area. Few, however, are of a significant size
(less than a dozen have sales of over 400 GWhs), or have eligible customers
in their concession areas.

The French System Operator (RTE) was created on 1 July 2000 and is a
sub-division of EDF, although it is unbundled in terms of management and
accounting. A postage stamp tariff has been implemented under the
transitional regime, which varies according to the voltage used and is based
on a matrix (Summer/Winter, Peak/Off-Peak). Users have to contract for their
maximum transmission capacity. Imbalances are settled under a published
tariff, which introduces high charges for imbalances beyond a 10% tolerance
level and 5MW.

A three-year framework contract (e.g., by way of a Master Agreement with a
minimum term of three years) is required for eligible customers, but
eligibles are free to deal for shorter maturity transactions within such a
three-year contractual framework.

Although the criteria for eligibility is per site, and eligible customers
have to contract transmission for each site, RTE has created balancing
responsibility contracts (contrats de Responsable d'Equilibre) which compels
the aggregation of imbalance charges for different eligible sites within an
equilibrium perimeter defined with RTE. Imbalances are settled under a
published tariff which charges a heavy penalty for any imbalance beyond a 10%
tolerance level or 5MW.

Even though we are currently under a transitional regime in France, the
ability to trade power already exists. Optimisation can be found through
real-time arbitrage offered by the flexibility of the industrial process, the
availability of market prices and optional structures. The establishment of
balancing responsibility contracts has created the basic conditions for an
effective power trading market in France, and this through the exchange of
blocks from one perimeter to another. Blocs are only exchangeable on
day-ahead bases but intra-day procedures are expected to be implemented. All
transactions are currently based on bilateral physical contracts.

The establishment of this framework has contributed to an increasing number
of players for trading, imports, exports and transit; we are confident that
the French power market will develop rapidly.     Enron Capital & Trade
Resources Limited ("ECTRL") is a balancing responsible actor in France and
closed the first physical power transaction in France early 2000, and was the
very first new entrant to trade power (buy/sell) in France late 2000.

Future Developments

France's size and geographical position will make it a natural hub for
trading on the Continent. It is Europe's second largest electricity market,
with net consumption (including industrial on-site consumption) totalling
over 400 TWh in 1999. The increase of physical trading, envisaged capacity
release by EDF, and creation of future market mechanism will contribute to
the further development of the market.

Both a balancing market and a spot exchange market are expected to be
implemented by end 2001. Players in the balancing market will propose put and
call options, exercised by RTE according to its own portfolio of contacts
(producer, consumer) and providing it with physical balancing capacity. The
balancing market will also show referenced market prices for balancing
services.

Some of the spot market volume is expected to be operated by ParisBourse.
However, due to the dominant position of EDF, the limited number of active
IPPs, existing restrictions for trading for authorised producers in France,
and the lack of transparency with regard to current rules for allocation of
cross-border capacity and attribution of congestion costs, we believe that
the conditions for the creation of an effective spot power market in France
are not yet fully met.

Recently, the European Commission has asked EDF to auction 6,000MW of virtual
capacity through VPP auctions starting in September 2001, representing about
30% of the market for French eligible industrials This will further
contribute to increase liquidity.

Regulatory Environment

The goal of Directive 96/92/EC concerning the internal market in electricity
is to obtain a cheaper but secure electricity supply by introducing and
gradually expanding competition while maintaining industry competitiveness in
the face of price decreases. France has transposed the directive, however
certain imperfection with regards to non-discriminatory access and the level
of liberalisation still exist.

The French Electricity law was passed on 10 February 2000, a year later  than
required by the EU, establishing a transitional regime for third party access
(TPA). Several application decrees still have to be passed, including
transportation tariffs on the electric grid to eligible customers. The
current threshold for eligibility is 16GWh (net of auto-consumption) per year
and per site, and represents about 600 eligible clients and 1,200 sites.
Eligibility for distribution companies is currently limited to the eligible
consumption of customers located in their concession areas. The French power
market is effectively open to some competition, and about 60 eligible
industrials have so far switched totally or partly from the historical
supplier. The eligibility threshold will be reduced to 9GWh per site by
direct application of the EU Directive by Feb. 2003, as the French government
declined a quicker opening of the power market.

The two main authorities, which oversee the industry, are the CRE (Commission
de Regulation de l'Electricit,) is the official regulatory body and the
ministry of industry. The CRE is responsible to insure that RTE provides for
non-discriminatory access on to the grid and will be issuing transportation
tariffs.  The Ministry is responsible for providing generation licenses for
IPPs and for determining eligibility issues.

RTE is implementing new capacity allocation procedures on the UK, Italy and
Spain interconnectors. On the remaining borders, capacity is currently
allocated on a first-come-first served basis rule, and congestion fees are
levied at the margin, which favours long-term contracts and historical
players. In addition, there is currently some lack of transparency with
regards to RTE real-time data on the capacity available/used for exports and
imports. However an intra-day market is now effective for transits, imports
and exports.  The first come first serve allocation rule on border capacity
is likely to be changed by end 2001. In addition, the CRE is likely to
request RTE to release additional data in the months to come.

New IPPs have to be authorised through auctions or through direct decision of
the Ministry of Industry, the main route for authorisation. Authorised IPPs
in France are limited by Decree to buying for resale to eligible customers a
maximum of buy for resale to eligible customers a volume equivalent to 20% of
the installed capacity, including long term contracts. Although the
interpretation of this law is unclear, a recent statement by M. Tuot,
Director General of the CRE, implies that these restrictions only apply to
French authorised producers and thus not to foreign-based energy companies or
other non-producing entities. Thus, these restrictions do not apply to ECTRL,
as we are not registered in France.  In addition, French IPPs are free to
sell and export their production.

Eligible customers, who are physically connected to the Grid, have to
contract for transmission vis-.-vis RTE (Contrat Made). Traders, such as
ECTRL, are not required to have such a transmission contract, as they do not
consume the power they purchase. Only a balancing responsibility contract
coupled with grid access contracts (import, export, and/or transit) are
required by RTE.

A new Decree is expected to be passed by Summer 2001, setting up new
conditions for transmission, transits and exports under a permanent regime.
Imports, which are allocated on a pro-rata basis, are free of transmission
charges.

A network code is currently under discussion between market players and
RTE.

Market Conventions

A range of wholesale electricity products are currently traded in France.
Peak and baseload day-ahead, week-ahead, monthly, quaterly, and yearly
products are traded.  Peak products follow the German convention (12 hour
peaks on weekdays, 08h00-20h00).  Contract sizes are typically 25MW or 50MW.

Gate closure for scheduling imports, exports and transits is 14h00 Paris
time.  Gate closure for scheduling "echanges de blocs" is 16h00 Paris time.

Other: The Gas Market

A transitional regime was implemented on 10 August 2000 by direct application
of the EU Directive, thus establishing regulated TPA for sites whose
consumption is over 25 million cubic meters p.a. The eligibility threshold
will be reduced to 15million cubic meters in 2003, and 5 million cubic meters
in 2008. No gas law has been passed yet (forecasted for mid 2002), and it is
expected that the transitional regime for gas in France will last until end
2002. A zonal/distance-related tariff was published on 13 July 2000 by
GdF-Transportation. A permanent entry/exit tariff structure is likely to be
developed for 2003. Charges for imbalances are expensive and access to
storage is restricted. GdF-Trading, however, has published conditions for
balancing services.
There is only one trading Hub for France located at the French/Belgian border
(Blaregnies/TaisniSres). Due to the distance-related nature of the
transportation tariff, competitive TPA is limited to eligible sites which are
located not too far (less than about 250Km) from the French/Belgian border.
The main imports into France are for high cal gas, and GdF has published the
conditions for high cal/low cal gas swaps.
As there is not yet a gas law in France (a +Projet de Loi, was approved on
17th May 2000) transposing the EU gas directive into domestic legislation,
the Regulatory Commission has not been appointed to date, and the official
regulatory body remains the Ministry of Industry.
Although current conditions do not facilitate full requirement supply to
customers from new entrants, it is already possible to optimise gas supply
through import of blocs for part or full supply. ECTRL was the first new
entrant to supply gas at the French border, and more recently into France.
ECTRL's cumulative volume of gas trades so far totals 550 million cubic
meters.

The above represents only Enron's and its affiliates views' and, accordingly,
neither Enron nor any of its affiliates is providing any advice to you in the
above information.  You are not entitled to rely on any of the above
information and you are advised to take such other independent advice, as you
may deem necessary in respect of the matters referred to above.

 -----Original Message-----
From:  Brod, Simon
Sent: 25 May 2001 17:31
To: Gaillard, Bruno
Cc: de Gaulle, Pierre; Brun, Raphael; Davies, Philip; Duvauchelle, Antoine;
Sankey, Ross
Subject: RE: Background Information France/Final Draft

My suggested paragraph on market conventions:

A range of wholesale electricity products are currently traded in France.
Peak and baseload day-ahead, week-ahead, monthly, quaterly, and yearly
products are traded.  Peak products follow the German convention (12 hour
peaks on weekdays, 08h00-20h00).  Contract sizes are typically 25MW or 50MW.

Gate closure for scheduling imports, exports and transits is 14h00 Paris
time.  Gate closure for scheduling "echanges de blocs" is 16h00 Paris time.

Simon

From: Bruno Gaillard/Enron@EUEnronXGate on 25/05/2001 15:36
To: Pierre de Gaulle/LON/ECT@ECT, Raphael Brun/LON/ECT@ECT, Simon
Brod/LON/ECT@ECT, Philip Davies/Enron@EUEnronXGate, Antoine
Duvauchelle/Enron@EUEnronXGate
cc: Ross Sankey/LON/ECT@ECT

Subject: RE: Background Information France/Final Draft

Below please find a revised version of the document. One element that is
still missing and that should be completed by the traders is the
"conventions" by possibly adding gate closure information, peak vs. off-peak,
and other relevant information.

Bruno

Updated May 2001.

Background

The Continental European electricity market is developing from an integrated
monopoly business to a competitive market. A segment of electricity users now
have the right to choose their supplier from a range of marketers. The
emergence of new marketers and generators has created the demand for price
risk management solutions and has encouraged the development of a traded
wholesale market. Following the adoption of the EU Electricity Directive in
December 1996, member states were obliged to transpose the directive into
national legislation opening electricity markets to competition by February
1999.

The directive sets out a three-tiered approach to the liberalisation of
electricity supply markets. Stage one entered into effect on 19 February
1997, and calls for the opening of 22% of national markets, based on the
average community share of electricity consumed by end customers using more
than 40 GWh per year. The degree of opening will increase over six years by
lowering the community consumption threshold to 20 GWh in 2000 (27% market
opening) and to 9 GWh in 2003 (32-33% market opening). Distributor access is
a matter for each member state. The implementation of a new directive,
expected in 2002, will improve the conditions for a liberalized market.

At present, the level of compliance with the directive varies between member
states. The EU countries farthest along the process of liberalisation are
Germany, Austria, Spain and the Netherlands. Switzerland, although it is not
an EU member state, is integral to market developments. France, although
having chosen to comply with the minimum requirements of the directive, has
proven to open up their market more than expected.

Current Market

EDF is the dominant electricity producer in France, the largest power
producer in the world with 475TWh generated in 2000,  and the largest
exporter in Europe (net exports reached 71 TWh in 2000).  Power generation in
France is mainly nuclear (70%), but also hydro (20%), while conventional
thermal generation represents 10%. EDF is a vertically integrated company
with services and products in generation (92%), supply (?%), transmission and
distribution (95%). Finally, this historical supplier is a State Entity; the
French State owns EDF,s capital.  A few Independent Power Producers (IPP) are
also active in the market, such as Snet (6.4TWh, coal-fired), and CNR (16TWh,
hydro). Other smaller IPPs are commercially active but most must sell their
production to EDF under a regulated tariff.

More than 100 distribution companies are active through a concession regime
in their local distribution area. Few, however, are of a significant size
(less than a dozen have sales of over 400 GWhs), or have eligible customers
in their concession areas.

The French System Operator (RTE) was created on 1 July 2000 and is a
sub-division of EDF, although it is unbundled in terms of management and
accounting. A postage stamp tariff has been implemented under the
transitional regime, which varies according to the voltage used and is based
on a matrix (Summer/Winter, Peak/Off-Peak). Users have to contract for their
maximum transmission capacity. Imbalances are settled under a published
tariff, which introduces high charges for imbalances beyond a 10% tolerance
level and 5MW.

A three-year framework contract (e.g., by way of a Master Agreement with a
minimum term of three years) is required for eligible customers, but
eligibles are free to deal for shorter maturity transactions within such a
three-year contractual framework.

Although the criteria for eligibility is per site, and eligible customers
have to contract transmission for each site, RTE has created balancing
responsibility contracts (contrats de Responsable d'Equilibre) which compels
the aggregation of imbalance charges for different eligible sites within an
equilibrium perimeter defined with RTE. Imbalances are settled under a
published tariff which charges a heavy penalty for any imbalance beyond a 10%
tolerance level or 5MW.

Even though we are currently under a transitional regime in France, the
ability to trade power already exists. Optimisation can be found through
real-time arbitrage offered by the flexibility of the industrial process, the
availability of market prices and optional structures. The establishment of
balancing responsibility contracts has created the basic conditions for an
effective power trading market in France, and this through the exchange of
blocks from one perimeter to another. Blocs are only exchangeable on
day-ahead bases but intra-day procedures are expected to be implemented. All
transactions are currently based on bilateral physical contracts.

The establishment of this framework has contributed to an increasing number
of players for trading, imports, exports and transit; we are confident that
the French power market will develop rapidly.     Enron Capital & Trade
Resources Limited ("ECTRL") is a balancing responsible actor in France and
closed the first physical power transaction in France early 2000, and was the
very first new entrant to trade power (buy/sell) in France late 2000.

Future Developments
 << OLE Object: Picture (Metafile) >>
France's size and geographical position will make it a natural hub for
trading on the Continent. It is Europe's second largest electricity market,
with net consumption (including industrial on-site consumption) totalling
over 400 TWh in 1999. The increase of physical trading, envisaged capacity
release by EDF, and creation of future market mechanism will contribute to
the further development of the market.

Both a balancing market and a spot exchange market are expected to be
implemented by end 2001. Players in the balancing market will propose put and
call options, exercised by RTE according to its own portfolio of contacts
(producer, consumer) and providing it with physical balancing capacity. The
balancing market will also show referenced market prices for balancing
services.

Some of the spot market volume is expected to be operated by ParisBourse.
However, due to the dominant position of EDF, the limited number of active
IPPs, existing restrictions for trading for authorised producers in France,
and the lack of transparency with regard to current rules for allocation of
cross-border capacity and attribution of congestion costs, we believe that
the conditions for the creation of an effective spot power market in France
are not yet fully met.

Recently, the European Commission has asked EDF to auction 6,000MW of virtual
capacity through VPP auctions starting in September 2001, representing about
30% of the market for French eligible industrials This will further
contribute to increase liquidity.

Regulatory Environment
 << OLE Object: Picture (Metafile) >>
The goal of Directive 96/92/EC concerning the internal market in electricity
is to obtain a cheaper but secure electricity supply by introducing and
gradually expanding competition while maintaining industry competitiveness in
the face of price decreases. France has transposed the directive, however
certain imperfection with regards to non-discriminatory access and the level
of liberalisation still exist.

The French Electricity law was passed on 10 February 2000, a year later  than
required by the EU, establishing a transitional regime for third party access
(TPA). Several application decrees still have to be passed, including
transportation tariffs on the electric grid to eligible customers. The
current threshold for eligibility is 16GWh (net of auto-consumption) per year
and per site, and represents about 600 eligible clients and 1,200 sites.
Eligibility for distribution companies is currently limited to the eligible
consumption of customers located in their concession areas. The French power
market is effectively open to some competition, and about 60 eligible
industrials have so far switched totally or partly from the historical
supplier. The eligibility threshold will be reduced to 9GWh per site by
direct application of the EU Directive by Feb. 2003, as the French government
declined a quicker opening of the power market.

The two main authorities, which oversee the industry, are the CRE (Commission
de Regulation de l'Electricit,) is the official regulatory body and the
ministry of industry. The CRE is responsible to insure that RTE provides for
non-discriminatory access on to the grid and will be issuing transportation
tariffs.  The Ministry is responsible for providing generation licenses for
IPPs and for determining eligibility issues.

RTE is implementing new capacity allocation procedures on the UK, Italy and
Spain interconnectors. On the remaining borders, capacity is currently
allocated on a first-come-first served basis rule, and congestion fees are
levied at the margin, which favours long-term contracts and historical
players. In addition, there is currently some lack of transparency with
regards to RTE real-time data on the capacity available/used for exports and
imports. However an intra-day market is now effective for transits, imports
and exports.  The first come first serve allocation rule on border capacity
is likely to be changed by end 2001. In addition, the CRE is likely to
request RTE to release additional data in the months to come.

New IPPs have to be authorised through auctions or through direct decision of
the Ministry of Industry, the main route for authorisation. Authorised IPPs
in France are limited by Decree to buying for resale to eligible customers a
maximum of buy for resale to eligible customers a volume equivalent to 20% of
the installed capacity, including long term contracts. Although the
interpretation of this law is unclear, a recent statement by M. Tuot,
Director General of the CRE, implies that these restrictions only apply to
French authorised producers and thus not to foreign-based energy companies or
other non-producing entities. Thus, these restrictions do not apply to ECTRL,
as we are not registered in France.  In addition, French IPPs are free to
sell and export their production.

Eligible customers, who are physically connected to the Grid, have to
contract for transmission vis-.-vis RTE (Contrat Made). Traders, such as
ECTRL, are not required to have such a transmission contract, as they do not
consume the power they purchase. Only a balancing responsibility contract
coupled with grid access contracts (import, export, and/or transit) are
required by RTE.

A new Decree is expected to be passed by Summer 2001, setting up new
conditions for transmission, transits and exports under a permanent regime.
Imports, which are allocated on a pro-rata basis, are free of transmission
charges.

A network code is currently under discussion between market players and
RTE.

Market Conventions

Traders: Need to Add: gate closer information and on-peak off peak hours plus
whatever relevant conventions.

Other: The Gas Market

A transitional regime was implemented on 10 August 2000 by direct application
of the EU Directive, thus establishing regulated TPA for sites whose
consumption is over 25 million cubic meters p.a. The eligibility threshold
will be reduced to 15million cubic meters in 2003, and 5 million cubic meters
in 2008. No gas law has been passed yet (forecasted for mid 2002), and it is
expected that the transitional regime for gas in France will last until end
2002. A zonal/distance-related tariff was published on 13 July 2000 by
GdF-Transportation. A permanent entry/exit tariff structure is likely to be
developed for 2003. Charges for imbalances are expensive and access to
storage is restricted. GdF-Trading, however, has published conditions for
balancing services.
There is only one trading Hub for France located at the French/Belgian border
(Blaregnies/TaisniSres). Due to the distance-related nature of the
transportation tariff, competitive TPA is limited to eligible sites which are
located not too far (less than about 250Km) from the French/Belgian border.
The main imports into France are for high cal gas, and GdF has published the
conditions for high cal/low cal gas swaps.
As there is not yet a gas law in France (a +Projet de Loi, was approved on
17th May 2000) transposing the EU gas directive into domestic legislation,
the Regulatory Commission has not been appointed to date, and the official
regulatory body remains the Ministry of Industry.
Although current conditions do not facilitate full requirement supply to
customers from new entrants, it is already possible to optimise gas supply
through import of blocs for part or full supply. ECTRL was the first new
entrant to supply gas at the French border, and more recently into France.
ECTRL's cumulative volume of gas trades so far totals 550 million cubic
meters.

The above represents only Enron's and its affiliates views' and, accordingly,
neither Enron nor any of its affiliates is providing any advice to you in the
above information.  You are not entitled to rely on any of the above
information and you are advised to take such other independent advice, as you
may deem necessary in respect of the matters referred to above.

 -----Original Message-----
From:  de Gaulle, Pierre
Sent: 25 May 2001 12:22
To: Brun, Raphael; Brod, Simon; Gaillard, Bruno; Davies, Philip
Cc: Sankey, Ross
Subject: RE: Background Information France/Final Draft

This is the final draft as approved by EOL legal and Mark Elliott.

Any ultimate comments?

Pierre
---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 25/05/2001
12:24 ---------------------------
From: Justin Boyd/Enron@EUEnronXGate on 25/05/2001 12:16
To: Mark Elliott/Enron@EUEnronXGate, Pierre de Gaulle/LON/ECT@ECT, Ian
Brungs/Enron@EUEnronXGate
cc:

Subject: RE: Background Information France/Final Draft

i have no further comments from an EOL perspective

justin
 -----Original Message-----
From:  Elliott, Mark
Sent: 25 May 2001 12:05
To: de Gaulle, Pierre; Boyd, Justin; Brungs, Ian
Subject: FW: Background Information France/Final Draft

Pierre,

Re the main text - see my comments in blue below.  I have passed this on to
Justin as you will see as Justin is charge of Legal for EOL and will also
have to approve it.  With regards to the slides, could you give me a hard
copy - I can't seem to open them on my system.

Kind regards

Mark

 -----Original Message-----
From:  de Gaulle, Pierre
Sent: 22 May 2001 12:26
To: Mark Elliott/LON/ECT@ENRON; Oliver, Jennifer
Subject: RE: Background Information France/Final Draft

Mark,

Please find herewith the background info for EOL France. It seems that you
would have to approve it (Any other approval needed?). Please note that this
draft has been seen and amended by Raphael, Simon, Philip and Bruno.

Thanks

Pierre

---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 22/05/2001
12:22 ---------------------------
From: Jennifer Oliver/Enron@EUEnronXGate on 22/05/2001 11:10
To: Pierre de Gaulle/LON/ECT@ECT
cc:

Subject: RE: Background Information France/Final Draft

Pierre,

Has French Power Legal approved the final draft below? If not, please could
they review before I submit this to the EnronOnline approval process. Also,
please let me know any other approvals you have receieved so far. This will
help determine who still needs to review.

Thanks,
Jennifer

 -----Original Message-----
From:  de Gaulle, Pierre
Sent: 21 May 2001 18:04
To: Oliver, Jennifer; Goddard, Paul
Subject: Re: Background Information France/Final Draft

Please find the final draft of EOL Backgoung information for France. Please
also find two slides about France, which can be included in the Continental
Gas Trading presentation.

I would like to appear in the background as the main commercial contact
point, as follows:

Pierre de Gaulle
Director France
Tel: + 44 207 783 7742
Fax: + 44 207 783 8255
Mobile: + 44 777 19 01 565
Email: Pierre.de.Gaulle@enron.com

 Thanks

Pierre

 << File: SlidesFrance.ppt >>

---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 21/05/2001
18:00 ---------------------------

 << OLE Object: Picture (Device Independent Bitmap) >>
Bruno Gaillard@ENRON
21/05/2001 17:51
To: Pierre de Gaulle/LON/ECT@ECT
cc: Raphael Brun/LON/ECT@ECT, Simon Brod/LON/ECT@ECT, Philip
Davies/LON/ECT@ECT

Subject: Re: Background Information France/EOL/Draft 2   << OLE Object:
StdOleLink >>

See red and strikethrough comments below

---------------------- Forwarded by Pierre De Gaulle/LON/ECT on 20/05/2001
16:09 ---------------------------

 << OLE Object: Picture (Device Independent Bitmap) >>
Pierre de Gaulle
14/05/2001 19:56
Sent by: Pierre De Gaulle
To: Jennifer Oliver/EU/Enron@Enron, Paul Goddard/EU/Enron@Enron
cc: Philip Davies/LON/ECT@ECT, Bruno Gaillard/EU/Enron@Enron, Raphael
Brun/LON/ECT@ECT, Simon Brod/LON/ECT@ECT

Subject: Background Information France

Please find a draft of the marketing background information about the French
power (and gas) markets for EOL.

Your comments are appreciated.

Thanks

Pierre

Updated May 2001.

1)Background

France is the second largest country in Europe with 58 million inhabitants.
EdF, who was the monopolistic producer, is the largest power producer in the
world with 475TWh generated in 2000, thanks to nuclear production. The
historical supplier, who is at the same time the largest exporter of power in
Europe (net exports reached 71TWh in 2000), is a direct emanation from the
French State, who owns EdF capital. Power generation in France is mainly
nuclear (70%), but also hydro (20%), while conventional thermal generation
represents 10%. EdF owns 92% of power generation, and 95% of distribution.

A few Independent Power Producers (IPP) are also active in the market, such
as Snet (6.4TWh, coal-fired), and CNR (16TWh, hydro). Other small IPPs sell
their production to EdF under a regulated tariff. There has been significant
development of cogeneration projects since 1997. There is now 3,500MW of
installed capacity, thanks to the legal obligation for EdF to purchase power
generated from cogeneration units at a preferable (is "preferable" the
correct word??)   tariff. In the view of the transposition of  the EU
Electricity Directive into French law, this purchase obligation ceased to
apply for new large projects (over 12MW) from 1st Jan. 1999.
More than 100 distribution companies are active through a concession regime
in their local distribution area. Few, however, are of a significant size
(less than a dozen have sales of over 400 GWhs), or have eligible customers
in their concession area.

2) Regulatory Environment

The French Electricity law was passed on 10 February 2000, implementing
regulated third party access (TPA) in France under a transitional regime. The
law was approved one year late, failing to meet the required EU deadline.
Dozens  ["Dozens"  - I would replace this with "Several")  of application
decrees still have to be passed, including tariffs to eligible industrials.
The French power market is open to competition, however. About 60 eligible
industrials have so far switched totally or partly from the historical
supplier. Current threshold for eligibility is 16GWh (net of
auto-consumption) per year and per site, representing about 600 eligible
clients and 1,200 sites. The eligibility threshold will be reduced to 9GWh
per site by direct application of the EU Directive in Feb. 2003, as the
French government declined a quicker opening of the power market.

Eligibility of distribution companies is limited to the eligible consumption
of customers located in their concession area.
A three-year framework contract ( e.g., by way of a Master Agreement with a
minimum term of three years) is required for eligible customers, but
eligibles are free to deal for shorter maturity transactions within such a
three year contractual framework.

New IPPs have to be authorised through auctions or through direct decision
from the Ministry of Industry, which is the main route for authorisation.
Authorised IPPs in France are limited by Decree to trading buy for resale to
eligible customers a volume equivalent to 20% of the installed capacity,
including long term contracts. Trading is currently defined as the conditions
of power purchase for resale to eligible customers. These Trading
restrictions, however, do not apply to ECTRL, as we are not registered in
France. IPPs are free to sell and export power.

The French System Operator (RTE) was created on 1 July 2000 and is a
sub-division of EdF, although it is unbundled in terms of management and
accounting. A postage stamp tariff was implemented under the transitional
regime, which varies according to the voltage used,and which is based on a
matrix (Summer/Winter, Peak/OffPeak). Users have to contract transmission up
to the maximum capacity that they will use. RTE purchases excess capacity
available through transmission contracts at fixed prices, which represents
about half of the market price. Imbalances are settled under a published
tariff, which introduces high charges for imbalances beyond a 10% tolerance
level and 5MW. Although the criteria for eligibility is per site, and
eligible customers have to contract transmission for each site, RTE has
created programme responsible contracts (contrats de Responsable
d'Equilibre), which allow the aggregation of imbalance charges for different
eligible sites within an equilibrium perimeter defined with RTE.

Eligible customers, who are physically connected to the Grid, have to
contract for transmission vis-.-vis RTE (Contrat Made). Traders, such as
ECTRL, are not required to have such a transmission contract, as they do not
consume the power they purchase. Only a programme responsible contract
coupled with grid access contracts (import, export, and/or transit) are
required by RTE.

A new Decree is expected to be passed by Summer 2001, setting up new
conditions for transmission, transits and exports under a permanent regime.
It is likely that this new tariff will implement a 1/3 injection-2/3 delivery
calculation factor. Imports, which are allocated on a pro-rata basis, are
free of transmission charges.

Programme responsible contracts have established the basis of trading in
France through the exchange of blocs from one perimeter to another.  Enron
Capital & Trade Resources Limited ("ECTRL")  is programme responsible in
France. Cross border capacity is currently allocated on a first-come-first
served basis rule by RTE, and congestion fees are levied at the margin, which
favours long term contracts and does not give equal treatment to all players.
In addition, there is currently some lack of transparency with regards to RTE
real-time data on the capacity available/used for exports and imports. This
allocation rule is likely to change by end 2001. In addition, the CRE is
likely to request RTE to release additional data in the months to come.

The CRE (Commission de Regulation de l'Electricite) is the offical regulatory
body, which mainly covers TPA and tariff issues, while IPP licenses and
eligibility issues are covered by the Ministry of Industry.

3) Business Opportunity

Although we are currently under a transitional regime in France, the ability
to trade power already exists. Optimisation can be found through real-time
arbitrage between the flexibility of the industrial process, market prices
and optional structures. The establishment of programme responsible contracts
has created the basic conditions for an effective power trading market in
France. ECTRL closed the first physical power transaction in France early
2000, and was the very first new entrant to trade power (buy/sell) in France
late 2000.

An intraday market is now effective for transits, imports and exports, and is
expected to soon be extended to exchange of blocs in France.
Liquidity has been dramatically increasing (although the market remains
dominated by the historical player) thanks to RTE capacity auctions for
(auction has not been implemented on Spanish side yet) [QUERY: do we need
this bit in brackets??  What does it add??  Can't we just delete it??  Or is
it a note and someone has to write some better text here??  It just does not
read correctly in English owing to its place in the sentence at present] UK,
Italy and Spain interconnectors, RTE tenders for HV Grid losses, industrials
switching, and new players coming into the market. In addition, the European
Commission has determined that EdF will auction 6,000MW of virtual capacity
through VPP and PPA auctions in September 2001, representing about 30% of the
market for French eligible industrials This will further contribute to
increase liquidity.
A network code is currently under discussion between market players and
RTE.

4) Future Development

It is forecasted that both balancing market and spot exchange market will be
implemented by end 2001. Players in the balancing market will propose put and
call options, which will be exercised by RTE according to its own portfolio
of contacts (producer,consumer), thus providing RTE with physical balancing
capacity. The balancing market will also show referenced market prices for
balancing services.

The Some of the spot market volume is expected to be run by ParisBourse.
However, due to the dominant position of EdF, the limited number of active
IPPs, existing restrictions for trading for authorised producers in France,
and the lack of transparency with regard to current rules for allocation of
cross-border capacity and attribution of congestion costs, we believe that
the conditions for the creation of an effective spot power market in France
are not yet fully met. ECTRL has actively been lobbying in order to have fair
and transparent rules implemented for every player in the market and has
actively contributed for a spot market to take place.

However, thanks to an increasing number of players in France for trading,
imports, exports and transit, we are confident that the French power market
will develop rapidly.

5) The Gas Market Situation

A transitional regime was implemented on 10 August 2000 by direct application
of the EU Directive, thus establishing regulated TPA for sites whose
consumption is over 25 million cubic meters p.a. The eligibility threshold
will be reduced to 15million cubic meters in 2003, and 5 million cubic meters
in 2008. No gas law has been passed yet (forecasted mid 2002), and its is
expected that the transitional regime for gas in France will last until end
2002. A zonal/distance-related tariff was disclosed published on 13 July 2000
by GdF-Transportation. A permanent entry/exit tariff structure is likely to
be developed for 2003.  Charges  for imbalances are expensive, and access to
storage is restricted. GdF-Trading, however, has published conditions for
balancing services.
There is only one trading Hub for France located at the French/Belgian border
(Blaregnies/TaisniSres). Due to the distance-related nature of the
transportation tariff, competitive TPA is limited to eligible sites which are
located not too far (less than about 250Km) from the French/Belgian border.
The main imports into France are for high cal gas, and GdF has published the
conditions for high cal/low cal gas swaps.
As there is not yet a  [new??] gas law in France ( a Projet de Loi was
approved on 17th May 2000) transposing the EU Gas Directive into domestic
legislation, the Regulatory Commission has not been appointed to-date , and
the official regulatory body remains the Ministry of Industry.
Although current conditions do not facilitate full requirement supply to
customers from new entrants, it is already possible to optimise gas supply
through import of blocs for part or full supply. ECTRL was the first new
entrant to supply gas at the French border, and more recently into France.
ECTRL's cumulative volume of gas trades so far totals 550 million cubic
meters.

The above represents only Enron's and its affiliates views' and, accordingly,
neither Enron nor any of its affiliates is providing any advice to you in the
above information.  You are not entitled to rely on any of the above
information and you are advised to take such other independent advice as you
may deem necessary in respect of the matters referred to above.

---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001
10:05 PM ---------------------------
From: Bruno Gaillard on 06/01/2001 07:04 PM GDT
To: Richard Shapiro/NA/Enron@Enron
cc:

Subject: Gas situation in France

----- Forwarded by Bruno Gaillard/EU/Enron on 01/06/2001 19:03 -----

	Bruno Gaillard
	24/05/2001 18:12

		 To: Philip Davies/Enron@EUEnronXGate
		 cc: Didier Magne/Enron@EUEnronXGate
		 Subject: Gas situation in France
Philip

Attached the relevant sections of a paper produced by EFET (largely by us) on
TPA in the French gas market and Enron comments to the EU on TPA issues. Note
that these papers were produced in December of 2000 and mid-Feb 2001
respectively. Notable changes since then include.

A relatively competitively priced conversion service (H-Cal to L-Cal gas) at
TaiseniSres has been but in place
The balancing regime has been improved and penalties are now indexed to
Zeebrugge (x 1.5 or x -0.5)
Access conditions to LNG have been published
Flexibility services are offered by GdF- Supply. The terms and conditions up
to now had been onerous. Recent talks between Didier and a customer suggest
that they have been wildly improved but this still needs to analysed by us.
Transit tariffs have been published but is also restricted to a  year-long.
The regulator is seriously considering changing the tariff structure from a
distance related structure to a entry/exit type structure.
The first hearing on the law (directive transposition) at the parliament has
been delayed from spring 2001 to summer 2002. Regulated tariffs will not
likely be put in place until 2003.

Let me know if you need more information.

Bruno

---------------------- Forwarded by Richard Shapiro/NA/Enron on 06/08/2001
10:06 PM ---------------------------
From: Bruno Gaillard/Enron@EUEnronXGate on 06/01/2001 07:14 PM GDT
To: Richard Shapiro/NA/Enron@Enron
cc:

Subject: EdF capacity auctions

Information on capacity release program (VPP) in France

Letter below to the consultants of EDF

Decision on Merger imposing capacity release

Trustee mandate that we proposed to the EU

Initial VPP proposal by EDF

 -----Original Message-----
From:  Sankey, Ross
Sent: 01 June 2001 09:51
To: de Gaulle, Pierre
Cc: Gaillard, Bruno; Philip Davies/LON/ECT@ENRON; Brun, Raphael; Brod, Simon;
Styles, Peter; Dindarova, Nailia; Shaw, Eric; Elliott, Mark
Subject: RE: EdF capacity auctions

All,

I would suggest we need to do the following :-

? Register for the auction and receipt of the IM asap.  Bruno could you
please discuss with Mark and put together our registration document.  I
assume that ECTRL meets the criteria of a trader "registered" in an EU member
state?  Does not appear to be any need to deal with credit support or other
regulatory "qualifiers" such as balancing agreements as yet.  Mark - agree?
Bruno - could you please take care of sending this registration letter (agree
with Pierre who should act as principal contact).
? Establish once and for all the role of Trustee and CRE in the process of
approving capacity release phasing, auction process for each phase and
product specifications AND understand how the "consultation" process will
work once we have the IM.  Hence need to discuss with MTF, then Trustee and
CRE asap ie in June if possible.  Preferably before we meet again with
PWC/Roth....

In addition to Pierre's comments, the PIM also states that strike prices at
least are subject to Trustee review but a number of areas need to be
questioned.

? Capacity Release Phasing.  PIM confirms the 5 year period of the remdey but
also says a review can be requested after 3 years.  Bruno - you need to
review the remedy doc, but I do not see how a 2 year phasing of capacity
release complies with the remedy (at least in spirit).  We would suggest
there is no impediment to offering the FULL remedy in a single phase.  If
theere is insufficient demand they can always have a fall back position to
release unsold capacity on a 6 monthly or annual basis through the 5 year
period.  The current proposal is no more than EdF trying to minimise capacity
release and/or extract max value (can't blame them for trying but it is not
what we want or what remedy requires).  EdF's only real argument is that
phasing will allow more new suppliers to enter at a later date as eligiblity
threshold drops in France.  However, since eligible demand already exceeds
total capacity release this would limit development of competition to
existing eligibles.  As a minimum the release programme for all capacity
should be clearly defined up front; not at the whim of EdF.  Peter - thoughts
on this and how, in context of remedy, we can argue for accelerated single
phase auction (with possible reauctioning of unsold capacity over 5 years)?
? Auction Process : qualifying criteria likely to be more defined in IM; but
no obvious problems here.  I am less sure about nature of auction process.
We obviously need to think it through more, but why not just have a simple
process based on single sealed bids (or an electronic bid process).  The use
of price "clock" controlled by the auctioneer may allow a reserve price to be
set which is clearly not the intent of the remedy - this should be set at
zero for all product groups not subjectively "to ensure excess demand" but
only for certain groups!
? Product Specs : need to understand what if anything can be changed here.
Strikes seem to be subject to Trustee approval, but we need to understand
what else can be influenced eg within day flex.  Since we have already
covered this in previous submissions to MTF, EdF etc this should be easy to
identify as we go forward.

Any comments?

Ross

 -----Original Message-----
From:  de Gaulle, Pierre
Sent: 01 June 2001 09:00
To: Sankey, Ross
Cc: Gaillard, Bruno; Philip Davies/LON/ECT@ENRON; Brun, Raphael; Brod, Simon;
Styles, Peter; Dindarova, Nailia
Subject: RE: EdF capacity auctions & other EU news

Point 1.5: This info is of a preliminary nature and is subject to change. In
addition, it is mentioned in point 6 that registered companies for the
auction will have the opportunity to ask questions and raise issues during
conferences, which will be then considered by EdF.

Specifications of the auction will be finalised by end August. This seems to
leave some room for a complete feedback from registered companies. Let's
discuss the content of the PIM.

I suggest to arrange anothe meeting with PWC/Rothschild in the next few weeks
(week 11-16 June).

What about a potential meeting with the Trustee about the PIM?

Pierre

From: Ross Sankey/Enron@EUEnronXGate on 31/05/2001 19:31
To: Bruno Gaillard/Enron@EUEnronXGate, Philip Davies/LON/ECT@ENRON, Pierre de
Gaulle/LON/ECT@ECT, Raphael Brun/LON/ECT@ECT, Simon Brod/LON/ECT@ECT
cc: Peter Styles/LON/ECT@ECT, Nailia Dindarova/LON/ECT@ECT

Subject: RE: EdF capacity auctions & other EU news

Bruno,

Quel surprise.  Should make your follow up with the MTF interesting as to the
role of the Trustee.

One point to note for both MTF and Albers at COMP - the lack of within day
flexibility is hardly in keeping with the intention of supporting development
of retail supply to end users with fluctuating demand.  Suppliers will thus
be at the mercy of EdF in the balancing market.

In addition, how on earth can they be allowed to take 2 years to complete the
process?  How does that fit with merger remedy?

Somewhat ironic that they have the document in English!

Lets discuss what if anyhting we can do after you have spoken with MTF.

Regards,

Ross

 -----Original Message-----
From:  Gaillard, Bruno
Sent: 31 May 2001 19:03
To: Philip Davies/LON/ECT@ENRON; Sankey, Ross; de Gaulle, Pierre; Brun,
Raphael; Brod, Simon
Cc: Styles, Peter; Dindarova, Nailia
Subject: RE: EdF capacity auctions & other EU news

Obviously a done deal - interestingly the Trustee is not mentioned. EDF has
the capacity offering on its web page
http://www.edf.fr/htm/en/enchere/enchere and has a detailed document in
English but not in French yet. They also has EFET under industry links as
well as the CRE, DIGEC.

Attached is EDF's presentation of the product. After a quick look, it seems
that flexibility is not a option (nomination at noon, and price has not
changed)

 << File: VPP MIP.pdf >>
Bruno

31/05/01 UK: EDF ISSUES DETAILS OF ITS FIRST CAPACITY AUCTION.
LONDON, May 31 (Reuters) - French utility Electricite de France (EdF)
announced on Thursday details of its first auction to sell electricity
production capacity to competitors. EdF was required by the EU Commission in
February to give access to some of its generation capacity as a condition for
EU approval of its purchase of a 25 percent stake in German utility EnBW.
In the next two years, EdF will auction a total of 6,000 megawatts which
include 1,000 MW of peak capacity sold at a price of 26 euros per megawatt
hour (MWh) and 4,000 MW of baseload at a price of eight euros/MWh.
In addition, 1,000 MW of cogeneration production capacity will be made
available. Production from cogeneration plants is bought by EdF from smaller
producers under long-term contracts.
"With such contracts, electricity suppliers and traders will be able to have
electricity without the technical and operational risks of running a power
plant," said EdF in a statement.
The price for cogeneration capacity will be made public a few weeks before
the auction as it depends on gas price movements, EdF said.
The auction will take place in several tranches, the first one starting in
September, when 200 MW of peak capacity will be auctioned, 800 MW of baseload
and 190 MW of cogeneration.
The whole 6,000 MW should be sold by October 2003.
EdF, which has a 94 percent share of the French generation market, has a
total installed capacity of 103,500 MW.

 -----Original Message-----
From:  Dindarova, Nailia
Sent: 31 May 2001 17:20
To: Gaillard, Bruno; Philip Davies/LON/ECT@ENRON
Subject: EdF capacity auctions & other EU news

FYI see attached
---------------------- Forwarded by Nailia Dindarova/LON/ECT on 31/05/2001
17:07 ---------------------------

 << OLE Object: Picture (Device Independent Bitmap) >>
"Sandra James" <Sandra_James@electricity.org.uk> on 31/05/2001 17:11:51
To: <david.love@british-energy.com>, <rob.plaskitt@british-energy.com>,
<shercock@compuserve.com>, <jgreen3@edisonmission.com>, "Gwyn Dolben"
<Gwyn_Dolben@electricity.org.uk>, <KHanks@enron.com>,
<Nailia.Dindarova@enron.com>, <Peter.Styles@enron.com>,
<mwedg90@entergy.com>, <alison.cole@innogy.com>, <DAVID.TOLLEY@innogy.com>,
<peter.heffer@magnox.co.uk>, <ALAN.CLARK@natpower.com>,
<David.Burnett@nie.co.uk>, <Gordon.Dunlop@nie.co.uk>, <Chris.Price@pgen.com>,
<david.densley@scottish-southern.co.uk>, <shamblyn@seeboard.com>,
<Brian.Samuel@txu-europe.com>, <Phil.Hardy@txu-europe.com>,
<andy.papageorgi@uk.ngrid.com>, <christine.brown@uk.ngrid.com>,
<judith.ward@uk.ngrid.com>, <louise.petchell@uk.ngrid.com>,
<michael.metcalfe@uk.ngrid.com>, <James.Sheward@uuplc.co.uk>,
<Arthur.Probert@yeg.co.uk>, <gail.antrobus@yeg.co.uk>,
<Gail.Silcock@yeg.co.uk>, <joanne.bridge@yeg.co.uk>
cc:

Subject: EdF capacity auctions & other EU news

Dear All

Please see attached news items from this afternoon, including details of
EdF's sale of capacity.

Regards

Sandra

*****************************************************************
This e-mail is confidential. It is intended only for the person named.
Unless you are that person, or authorised to receive this e-mail, you
must not copy or use it or disclose it to anyone else.  If you have
received this e-mail in error, please contact the sender.  Thank you
for your cooperation.
Electricity Association Services Limited, 30 Millbank, London  SW1P 4RD
(Reg. in England No: 2366837).
*****************************************************************
 - eunews 31may pm.doc << File: eunews 31may pm.doc >>


Mind your own business options east.

Enjoy.
Mike


Sara, Samantha

I talked to Chuck Kaufman and he had the following concerns from a credit
standpoint:

1) Cross Default-  He wanted to lower Enron's cross default to $50MM to equal
the amount for Cinergy.  I informed him, this amount has been set by our
banks and the Enron Treasurer feels the $100MM is justified.  He has agreed
to keep the amounts as they are.

2) Guaranty's and Guaranty/Collateral Thresholds-
    a) Enron outgoing Guaranty-  Enron currently gives a $10MM guaranty to
cover two Cinergy entities, Cinergy Marketing and Cinergy Capital. In my
credit          worksheet I asked that Enron give them an additional $10MM
guaranty to cover this ISDA specifically with the intention of amending the
existing guaranty  to remove Cinergy Marketing.  After speaking to Chuck I
have agreed to tie the existing guaranty to this contract and not use the
additional guaranty at all.
 Please tie the existing guaranty to the ISDA, I will forward a copy of that
guaranty to you, so it can be used as and exhibit.

   b) Enron incoming Guaranty-  Enron currently receives a $10MM guaranty
from Cinergy Corp which guaranty's Cinergy Marketing and Cinergy Capital for
both  physical and financial products.  I allocated $2MM of this guaranty to
the ISDA with a $2MM collateral threshold.  Chuck wanted to see their
threshold  increased to $10MM.  I told them I would agree to this if we
received an increase in their guaranty to allow for cushion for other
business outside of this  ISDA.  He is going to put this requested increase
to $12MM into their corporate office.  This being said, please increase the
collateral threshold  for Cinergy Marketing to $10MM.

Can you please incorporate these changes into the ISDA, and once I hear that
Chuck has confirmed the increase in the Guaranty amount to Enron I will
notify you to send execution copy's to him, assuming all the legal issues
have been resolved.

Regards,
Russell


Steve:  I intend to get the following email to Ken once he lands today in
DC.

Per our conference call last evening, we put together additional information
on Administration appointments in preparation for Ken Lay's meeting with Clay
Johnson.  The post of Ambassador to India has garnered the interest of
several candidates.  Former Senator Larry Pressler has asked for support.
Appended is an Email from Joe Hillings regarding the state of play on this
nomination.  I also check with Wade Cline in India about his reaction to
Senator Pressler.  Wade indicated that he does not know the Senator
personally, but that "he is well thought of in India and would be a good
choice."  Please note from Joe's Email that Joe is concerned about a possible
Pressler nomination.

With respect to the SEC, Ken was asked to speak on behalf of James Doty from
the law firm of Baker Botts.  Appended is his bio.  I checked with Ed
Gillespie this morning about his latest information on SEC.  Ed believes that
Joe Grunfest of Stanford University is the leading candidate.  No one has
contacted us on behalf of Mr. Grunfest.  In a recent Washington Post article,
in addition to Doty, Rep. Chris Cox was mentioned as a possible candidate.
Ed did not turn up Cox's name in his conversation with Administration
officials today.

I understand FERC candidates will also be discussed in the meeting.  Ed
Gillespie indicated this morning that "Pat Wood is still the pick."   Ed also
reported that Rep. Joe Barton is pushing Joe Kelliher for a potential slot.
We have worked closely with Joe over the past several weeks on California
issues.  He was on the transition team and is currently housed at the
Department of Energy as an Advisor to the Secretary.  I also understand that
McLane Layton of Senator Nickles' office has been told by the White House she
is on the list for consideration.  Rick Shapiro and I met with her last
week.   Both Kelliher and Layton were among the candidates listed on an early
Enron document given to the transition team.  I believe everyone in Enron
Government Affairs believes  Pat Wood is the superior pick.


hey!

We are all fine.  How is Miller?  Did he survive the trip to Lubbock..  Ha!  He's right the aggies always get kicked in the cohones by the Red Raiders.  Must have been a good game.  I am officially poor now thanks to Enron's financial wizards.  You have to be glad you left.  drop me a line.  Take care!

-----Original Message-----
From: Hunsucker, Brett [mailto:Bhunsucker@ercot.com]
Sent: Thursday, November 01, 2001 5:47 PM
To: Platter, Phillip
Subject: RE: FW: Hey

Hey Chief,

Just checking in to see how you and the fam are doing.  Hope all is
well.  Holly says Hey.

Brett

-----Original Message-----
From: Phillip.Platter@enron.com [mailto:Phillip.Platter@enron.com]
Sent: Monday, April 23, 2001 3:46 PM
To: Bhunsucker@ercot.com
Subject: Re: FW: Hey

Yo!    Things are OK here.   I  keep seeing your truck driving around
here.
Its a bummer not seeing ya'll in it.   I hope you are settling in well.
There are new faces around here everyday.  I think this summer wil be
pretty exciting.

Take care.


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Dear Jason and Dr. Kaminski,

Attached are files for our project. The word section is in .pdf format and
excel models are zipped to reduce size. You need to unzip the file first to
view the models. When reading the excel file, press "F9" to initiate
calculations.

Our team members are also interested in meeting with Dr. Kaninski to talk
about the models and visit Enron's trading facility.

We appreciate the excellent class Dr. Kaminski has brought to us.

Felix Feng Lu
on behalf of our team

********************
Felix Feng Lu
MBA Candidate, Class 2001
Jesse H. Jones Graduate School of Management
Rice University
phone - 713.942.8472 / fax - 714.908.7914
monfan@rice.edu
********************

 - winmail.dat


Folks -- Bracewell looked deeper and located the 1946 Neb. Case regarding
FERC jurisdiction over disposition of facilities.  Call if you have
questions.  Joe
----- Forwarded by Joe Hartsoe/Corp/Enron on 03/23/2001 01:31 PM -----

	"Karen Bishop" <kbishop@bracepatt.com>
	03/23/2001 01:25 PM

		 To: <jhartso@enron.com>
		 cc:
		 Subject: MEMO RE JURISDICTION OVER DISPOSITION OF FACILITIES.WPD

Joe:
Per Dan, please find attached the memo regarding Jurisdiction Over
Disposition of Facilities to a State.

 - MEMOREJU.WPD


The attached PDF file summarizes our view (Mary Hain's and mine) of the
possible outcomes of taking the PX investigation the FERC route or the PX
Settlement route.  To make a commercial decision, we need to know what
jurisdiction we would like this case to be settled in and the rules of
engagement in each jurisdiction.  For example, if we do a FERC filing we must
meet a "just and reasonable" standard while if we appeal an ADR decision to
FERC we have to prove that the ADR finding was "Arbitrary and Capricious."
Please review the attached file and let me know if any of it is wrong.
Personally, I need more input from legal and regulatory on what our odds of
winning our in the different juridictions before I can make an informed
decision.


Please arrange for the promotion for Sara Shackleton from Sr. Counsel to
Asst. General Counsel effective March 1, 2001.


My daughter has reservations at Kingsway House, 71 Eardley Court. Can you see
if anyone knows if this place is a disaster? She is going with a girlfriend
that doesn't have hardly any money so they had to find a place that was cheap
which worries me no end. Tx Rick


RC 102757 has been set up on Co. 0011 for the Southern Cone Risk Management
group of employees reporting to Scott Mills within Sally Beck's Global Risk
Management organization.  It will roll up under ACZStaff.0308.

Please transfer the following people from RC 100012 to this new RC effective
January 1, 2000:

Jana Morse   458-15-4343
Juana Fayett   633-03-2671
Christine Garcia   451-81-1732
Sarah J. Smith   059-56-6541

If you have any questions, please call me.  If you believe anyone else needs
to receive this E-mail, please forward to the appropriate people.  Thanks.

Lisa Cousino
x3-6343


Dan,
Thank you for the opportunity.  I am open today until 2:30 (I have meetings
from 3:00 - 5:00), or tomorrow before noon, and after 4:00.  Wednesday also
looks good (you pick)!

Thanks!

Jeff

	Daniel Coleman
	12/04/2000 10:52 AM

		 To: Jeff Youngflesh/NA/Enron@ENRON
		 cc: Craig H Brown/NA/Enron@Enron
		 Subject: Vulcan Signs

Jeff,
Please review the note below, and let's discuss at your convenience.

Daniel Coleman, C.P.M.
Enron Global Strategic Sourcing
Sourcing Portfolio Leader - Construction Services
(713) 646-7028

----- Forwarded by Daniel Coleman/NA/Enron on 12/04/2000 10:51 AM -----

	Bob Hamlin <bhamlin@vulcaninc.com>
	11/02/2000 04:26 PM

		 To: "'daniel.coleman@enron.com'" <daniel.coleman@enron.com>
		 cc:
		 Subject: Change Places

Hello

I hear from Leonard that he had a very good meeting with you last week in
Houston.  We are hearing from quite a few people and the business is
beginning to flow.   On that subject Leonard did pass on to me that the
signed contract is "on the way".

The purpose of this e-mail is inquire about Enron's ability to
provide/supply natural gas to our company.  We consume quite a bit of
natural gas relatively speaking in our aluminum furnace.   I believe last
year we spent about $500,000.

As we both know the price of natural gas is rising.  It never hurts to check
and see if better deals are out there.  If this is of any interest, please
pass on to the appropriate person/group who would handle.  The can contact
me first and then I will turn over to our person here.  Thanks

Bob Hamlin
Vice President
Vulcan Utility Signs & Products
800-426-1314


Please send Vickie a copy of our schedule w/ attys.
----- Forwarded by Richard B Sanders/HOU/ECT on 12/18/2000 12:54 PM -----

	Vicki Sharp@EES
	12/15/2000 04:14 PM

		 To: Richard B Sanders/HOU/ECT@ECT
		 cc:
		 Subject: California visit

What firms are you visiting with in California?


it was almost worth buying a ticket

"Jennifer White" <jenwhite7@zdnetonebox.com> on 03/08/2001 07:30:39 AM
To: john.arnold@enron.com
cc:
Subject: ooops....

Someone did win the lottery.  Perhaps I shouldn't watch the news on mute
if I want to get the story straight.

Also...another La Strada brunch this Sunday.  Will it ever end???

---- "Jennifer Brugh" <jmb@triadresources.com> wrote:
> Hi everyone!
>
> It's that time again, yep La Strada time!  On Sunday, March 11th we
> are
> meeting at La Strada on Westheimer at 11:00 to wish farewell to Courtney.
>
> Let me know if you can make it!
>
> Jennifer
>
>

___________________________________________________________________
To get your own FREE ZDNet Onebox - FREE voicemail, email, and fax,
all in one place - sign up today at http://www.zdnetonebox.com


Ireached Barry yeaterday at 011-529-848-7400  Rm.1607.

Are you sure your info is correct?

 -----Original Message-----
From: 	Miller, Stephanie
Sent:	Wednesday, December 05, 2001 7:27 AM
To:	Whitt, Mark
Subject:	FW:

fyi

 -----Original Message-----
From: 	Presas, Jessica
Sent:	Wednesday, December 05, 2001 7:43 AM
To:	Miller, Stephanie
Subject:	RE:

Yes

 -----Original Message-----
From: 	Miller, Stephanie
Sent:	Tuesday, December 04, 2001 2:41 PM
To:	Presas, Jessica
Subject:	RE:

did you send this to Louise and John L?

 -----Original Message-----
From: 	Presas, Jessica
Sent:	Tuesday, December 04, 2001 11:46 AM
To:	Miller, Stephanie; Ward, Kim S (Houston); Polsky, Phil; Bronstein, Mara
Subject:

You can reach Barry at the Westin Regina Resort at (998) 848-7400 in room 1907.


Michelle:  I've verified the information below.  If you'd like to drill down
deeper into any particular issue listed below, just let me know.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 03/12/2001 06:56 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	03/12/2001 04:41 PM

		 To: Michelle Robichaux/HOU/EES@EES
		 cc: Artemio Muniz/HOU/EES@EES, Harry Kingerski/NA/Enron@ENRON, James
Shirley/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Scott Massey/HOU/EES@EES, Scott
Stoness/HOU/EES@EES
		 Subject: Re: SOCAL Gas Questions!

Greetings Michelle:

As we talked about it last week---and now that I'm back in the office, I'm
having folks check to make sure that this is 100% accurate:

Rates for core subscription customers are forecasted (I believe based on
previous month's gas prices).
Bills for core subscription customers are lagged (I believe by 30 days after
consumption).
The IOUs face a PBR mechanism that incents them to buy index (though they may
have engaged in a modest amount of hedging).
The California PUC issued an order (about 2 months ago) prohibiting noncore
customers from switching to core subscription status.

I'm back in the office today, and have folks checking on this.  I need to pin
down with certainty 1) the forecast period, and 2) the bill lag period.  Will
get back to you as soon as we get the info.  If there's anything, just let me
know.

Best,
Jeff

	Michelle Robichaux@EES
	03/12/2001 04:33 PM

		 To: Artemio Muniz/HOU/EES@EES, Scott Stoness/HOU/EES@EES
		 cc: Scott Massey/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Jeff
Dasovich/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, James
Shirley/HOU/EES@EES
		 Subject: SOCAL Gas Questions!

Art/Scott

I have been trying to locate the right person in the organization to assist
with some questions about   Socal Gas.

Comment/Question:  Tricon, an EES gas customer behind Socal, paid
significantly  more for marketer gas service (IF SOCAL BORDER)   in Q4 00'
when compared to the cost of gas for Socal Gas customers.  How does Socal Gas
adjust for its cost of gas?  Is there a delayed true-up mechanism???  What
options are available should the customer return to utility service?

Tricon has been asking for the information for over a week.  I need an update
as soon as possible.

I appreciate your help.  Call me at X35976 if you have any questions,

Michelle


Rob, please follow up with Dorie she will handle the process for you.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 07/17/2000
11:00 PM ---------------------------

Rob Milnthorp
07/17/2000 03:38 PM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Offsite

Dave, I am seeking your approval to take my group on an offsite to Las Vegas
sometime in late 3rd/early 4th quarter. Cost is approx Cdn $1000/person for
flight and accomodation (thursday - sunday). As you know, we have done this
for a number of years but I'm not sure what approvals were obtained in the
past as it was either your group or Lavorato's group at the time. This would
involve Origination only as Trading is doing an offsite in conjunction with
the rest of Shankman's group. It should be noted also that we decided not to
attend the Masters this year as we didnt think it generated enough business
following last years trip -  this cut our expenses substantially. Please let
me know your thoughts on this.

Regards
Milnthorp


Yep.  Guess I'll leave Monday to get there.

"Veselack, Joni" <joni.veselack@neg.pge.com> on 05/08/2001 03:33:19 PM
To:	"'Chris.Germany@enron.com'" <Chris.Germany@enron.com>
cc:
Subject:	RE: Who is doing Tenn 500/800??

You should know better. You could do a road trip... you're good at driving!!

-----Original Message-----
From: Chris.Germany@enron.com [mailto:Chris.Germany@enron.com]
Sent: Tuesday, May 08, 2001 4:31 PM
To: joni.veselack@neg.pge.com
Subject: RE: Who is doing Tenn 500/800??

No chic - business trip.  May not go because tickets are $900.  I waited
toooooooo late doggoneit.

"Veselack, Joni" <joni.veselack@neg.pge.com> on 05/08/2001 02:07:38 PM

To:   "'Chris.Germany@enron.com'" <Chris.Germany@enron.com>
cc:
Subject:  RE: Who is doing Tenn 500/800??

Which chick are you taking with you???

-----Original Message-----
From: Chris.Germany@enron.com [mailto:Chris.Germany@enron.com]
Sent: Tuesday, May 08, 2001 2:59 PM
To: joni.veselack@neg.pge.com
Subject: RE: Who is doing Tenn 500/800??

We'll chat later.  I'm trying to get an invite to Florida for a CNG thingy
next week.  Leave Wed come back Friday.  May not happen.

"Veselack, Joni" <joni.veselack@neg.pge.com> on 05/08/2001 01:57:27 PM

To:   "'Chris.Germany@enron.com'" <Chris.Germany@enron.com>
cc:
Subject:  RE: Who is doing Tenn 500/800??

Why doesn't Enron promote from within.... same old story. It just took a
long time before EOL had the markets out there.

I leave Tuesday evening. There is a dinner Monday night... you should get
an
invite... since Goodell has to do the family thing... as always.

What happen to Dick??

-----Original Message-----
From: Chris.Germany@enron.com [mailto:Chris.Germany@enron.com]
Sent: Tuesday, May 08, 2001 2:49 PM
To: joni.veselack@neg.pge.com
Subject: Re: Who is doing Tenn 500/800??

Scott is your main man - I guess.  I don't know if he is going to keep
doing it or if he's going to hire an analyst.  I think Susan will be doing
Texas Eastern.  Mr. Goodell will be going to the CGAS/TCO meeting on
Tuesday.  I may be going Tues afternoon.

When do you leave Houston?

"Veselack, Joni" <joni.veselack@neg.pge.com> on 05/08/2001 08:16:56 AM

To:   "'Chris Germany'" <chris.germany@enron.com>
cc:
Subject:  Who is doing Tenn 500/800??

Vickey told me yesterday was her last day. I see Scott Neal is on Tenn Z0.

There are no quotes out there... just for Enron's info.

I'll be in town this weekend.. going to TCO/Gulf meeting Monday and
Tuesday.
Hope to see you.

Hope your back and other aches are okay.

PG&E National Energy Group and any other
company referenced herein that uses the PG&E name or
logo are not the same company as Pacific Gas and
Electric Company, the regulated California utility.  Neither
PG&E National Energy Group nor these other
referenced companies are regulated by the California Public
Utilities Commission.  Customers of Pacific Gas and Electric Company
do not have to buy products from these companies in order
to continue to receive quality regulated services from the utility.


Here is draft of our letter of understanding.

---------------------- Forwarded by Mark Breese/HOU/ECT on 01/11/2001 03:19
PM ---------------------------

Jeffrey T Hodge
01/11/2001 09:40 AM
Sent by: Jenny Helton
To: Ed McMichael/HOU/ECT@ECT, Mark Breese/HOU/ECT@ECT, Gil
Muhl/Corp/Enron@ENRON
cc:
Subject: PSE&G LOU

Attached please find the revised LOU and a redlined version compared to the
originals.


Here is the latest turn on the Investor List.  Can you please have someone
add fax numbers to the list.  Thanks
Ben


---------------------- Forwarded by Matthew Lenhart/HOU/ECT on 11/28/2000
02:09 PM ---------------------------

shirley.s.elliott@citicorp.com on 11/28/2000 12:32:55 PM
To: Matthew.Lenhart@enron.com
cc:

Subject: FW: New Bongo Partners

this is pretty funny.  when you want to try sushi, give me a call.  i'll tell
you all the good stuff to get and we'll try some soy beans.  they are so good
for you and taste good too!  they're a great snack -- tons of protein, very
little fat and carbs.  you spelled it "discusting."

s.

-----Original Message-----
From: mowilliamson [SMTP:mowilliamson@deloitte.com]
Sent: Tuesday, November 28, 2000 12:11 PM
To: shirley.s.elliott
Cc: mowilliamson
Subject: FW: New Bongo Partners

-----Original Message-----
From: Marix, Todd @ Houston Galleria [mailto:tmarix@cbre.com]
Sent: Tuesday, November 28, 2000 12:07 PM
To: 'Mimi Marix'; 'Molly Williamson'
Subject: New Bongo Partners

-----Original Message-----
From:   Banks, Tre @ Houston Galleria
Sent:   Tuesday, November 28, 2000 11:22 AM
To:     Marix, Todd @ Houston Galleria
Subject:        FW: wooderson

> say, man, you gotta joint..............it'd be a lot cooler if you
> did!!!!!!
>  <<new_bongo_partners.jpg>>
<<new_bongo_partners.jpg>>

- This message (including any attachments) contains confidential information
intended for a specific individual and purpose, and is protected by law.  -
If you are not the intended recipient, you should delete this message and
are hereby notified that any disclosure, copying, or distribution of this
message, or the taking of any action based on it, is strictly prohibited.

?
-----Original Message-----
From: Marix, Todd @ Houston Galleria  [mailto:tmarix@cbre.com]
Sent: Tuesday, November 28, 2000 12:07  PM
To: 'Mimi Marix'; 'Molly Williamson'
Subject: New Bongo  Partners

-----Original Message-----
From:?? Banks,  Tre @ Houston Galleria
Sent:?? Tuesday, November  28, 2000 11:22 AM
To:???? Marix,  Todd @ Houston Galleria
Subject:??????? FW: wooderson

> say, man, you gotta joint..............it'd be a  lot cooler if you
> did!!!!!!
>? <<new_bongo_partners.jpg>>
<<new_bongo_partners.jpg>>

 - new_bongo_partners.jpg


-----Original Message-----
From: 	"Kennedy, Rod" <rod.kennedy@rbcinvestments.com>@ENRON
Sent:	Wednesday, October 24, 2001 11:03 AM
To:	Dorland, Dan; Dorland, Chris
Subject:	Enron Research

A good company on sale.
Research..............
 <<DORENE1.pdf>>  <<DORENE2.pdf>>  <<DORENE3.pdf>>
Don't lick your envelope for awhile...........
Rod

 - DORENE1.pdf
 - DORENE2.pdf
 - DORENE3.pdf


The presentations from the San Antonio Leadership Conference are now
accessible from the Business Risk Management intranet page.  Just click on
"Conference San Antonio."   Please pass this information on to accounting
personnel who were not at the conference as well.

Attached is the mentoring questionnaire for you to volunteer to be a mentor
in our new mentoring program.  You can complete it electronically and email
it to me or you can print it and send it to EB 1923.  Thanks for being a part
of this new program.

Jan


Start Date: 4/20/01; HourAhead hour: 8;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042008.txt


I'm not taking this personal. I realize you're busy with what you're doing....Let me know when you get some time.

cjc

x35630

 -----Original Message-----
From: 	Griffith, John
Sent:	Wednesday, October 24, 2001 9:41 AM
To:	Cramer, Chris
Subject:	RE: Spread Option

I am but I have been very busy over here just as you are as well.  I guess the way that things usually happen is that unless the originator pushes something to happen, I don't worry about it very much.  Maybe not the best way to handle, but my work schedule is usually swamped from 6:30 am till about 4:00 pm.  I do want to get together but I will have to let you know if today is good.  The AGA comes out today, could be a busy afternoon.  Sorry about this.  Please do not think I am blowing you off.  I will call you later.

What is your number?

Thanks for your patience.

 -----Original Message-----
From: 	Cramer, Chris
Sent:	Wednesday, October 24, 2001 9:36 AM
To:	Griffith, John
Subject:	Spread Option

Hey John,

Any comments on what I sent you yesterday? Are you still interested in getting together and discussing results? If so, let me know and I'll be available.

regards,

cjc


It was just a funny song making fun of Enron.  You didn't miss out on much.
I signed the offer letter last week, and we went through the orientation and filled out the piles of paperwork.  I won't have the new title and company name officially until the 8th I heard.

What is up with you?  How's the car treating you?  Were you able to sell the maroon thing?
I'm house shopping now, I want to build one, just don't know where.  It is fun looking though.

Talk to you later,

KK

-----Original Message-----
From: Kloehr, James (EKT) [mailto:James.Kloehr@entergykoch.com]
Sent: Friday, February 01, 2002 10:34 AM
To: Keiser, Kam
Subject: RE: We made the big time

Hey,

Are you officially an employee of the new company ?  If so when are they
going to start flowing gas again?  I tried execute the attached file but was
unable.  What was it?  Anything else going on?

jk

> -----Original Message-----
> From:	Keiser, Kam [SMTP:Kam.Keiser@ENRON.com]
> Sent:	Friday, January 25, 2002 9:04 AM
> To:	james.kloehr@entergykoch.com
> Subject:	FW: We made the big time
>
>
>
> -----Original Message-----
> From: Palmer, B. Scott
> Sent: Friday, January 25, 2002 9:02 AM
> To: Gossett, Jeffrey C.; Keiser, Kam; Giron, Darron C.; Mills, Bruce;
> Love, Phillip M.; McLaughlin Jr., Errol; Valdes, John
> Subject: FW: We made the big time
>
>
>
>
> -----Original Message-----
> From: Palmer, Sarah
> Sent: Thursday, January 24, 2002 2:03 PM
> To: Palmer, B. Scott
> Subject: FW: We made the big time
>
>
>
>
> **********************************************************************
> This e-mail is the property of Enron Corp. and/or its relevant affiliate
> and may contain confidential and privileged material for the sole use of
> the intended recipient (s). Any review, use, distribution or disclosure by
> others is strictly prohibited. If you are not the intended recipient (or
> authorized to receive for the recipient), please contact the sender or
> reply to Enron Corp. at enron.messaging.administration@enron.com and
> delete all copies of the message. This e-mail (and any attachments hereto)
> are not intended to be an offer (or an acceptance) and do not create or
> evidence a binding and enforceable contract between Enron Corp. (or any of
> its affiliates) and the intended recipient or any other party, and may not
> be relied on by anyone as the basis of a contract by estoppel or
> otherwise. Thank you.
> **********************************************************************
>  << File: Enron-Ron-Ron.mp3 >>


Chris, Isabel Resendez is handling Ashland Chemical, her ext. is 3-0440.

Jeff

Chris Germany
10/08/2000 11:37 AM
To: Jeff W Westover/HOU/ECT@ECT
cc:
Subject: Ashland Chemical

Who handles the billing for Ashland Chemical?


Dear Mechelle,

Although I am still somewhat confused about goals and deliverables of the
model project that we discussed last week, I thought I would share some
information with you that may help you better scope this project.  As I
currently understand it, AA wants to ensure that all databases, spreadsheets
etc are inventoried.

Currently, risk management is incharge of setting up curves and books in the
source systems. We are responsible for setting up the relevant curve/book in
RisktRAC.  We have no access to the source systems. We are changing this
process by:

Instead of being inserted in the middle of the process we are working with IT
to transfer over the responsibility of establishing curves and books in the
source systems to ourselves.  At the moment we are concentrating on ERMS,
then will work with EnPower, and lastly, exotic spreadsheets.
We are developing a process to validate all new curves the day they are
created.
Our global exception reporting captures books & deals that do not make it
into any of the VAR, credit, or DPR.
An inventory of active books in the RAC website (which all risk management
personnel have access to) is being created.  This is a short term fix until
the counterparty book library initiative can meet our needs (not before
March).
We are putting a tool together to track all of the book requests.

I'll keep you updated on our progress.

Best regards

Shona


The 1999 Form W-2 and Retiree Tax Form 1099-R will be mailed to your address
of record by January 31, 2000. If you have not received your form by February
16th, you may request, in writing, for a duplicate copy to be sent to you.
Please note that a written request, including authorized signature is
required.

When requesting a duplicate form, please specify the year for which you need
a copy, sign your request, and include the following information:

 Name
 Complete Mailing Address
 Phone Number
 Social Security Number

You may mail your request to:
 ENRON CORP
 EB 1667
 P O BOX 1188
 HOUSTON TX   77002

Or you may fax your request to 713-646-3755.

Your request will be processed within one week of receipt.

If you have a question regarding the information on your Form W2, please
contact Ginger Sinclair at 713-853-9567.  Ginger will take a detailed message
of your questions and someone from the Payroll Tax Group will contact you as
soon as possible.

Thank you


IN THIS ISSUE:
Getting Rid of What Doesn't Work

Sounding Like a Broken Record
Greg Casey has said this for almost a year, but circumstances are making him
do it again. Business needs to get high-tech with their grassroots activity.
The time is now!
http://www.bipac.org/supporters/subscription/BiweeklyEIS/6_00_2TakingtheLead
.html

Getting New Spin for a New Era
Bernadette Budde gives her advice to campaigns on what works and what
doesn't when making their case for business support.
http://www.bipac.org/supporters/subscription/BiweeklyEIS/6_00_2BAB.html

Still At The Heart of GOP Control
It has been six years since the GOP took control of Congress. Who is left
from that historic class? Do they need help in the upcoming election? What
are their main issues?
http://www.bipac.org/supporters/subscription/BiweeklyEIS/6_00_2Freshman.html

Party Squabbles in Safe Seats
In the latest round of primaries, many of the winners are all but assured
seats in the next Congress. The real fight was in the primary. Find out who
won and who lost.
http://www.bipac.org/supporters/subscription/BiweeklyEIS/6_00_2Primaries.htm
l

Late Filings Reveal Limited Targets
Filings in Alaska, Arizona, Colorado, Kansas and Wyoming are discussed.
http://www.bipac.org/supporters/subscription/BiweeklyEIS/6_00_2Filings.html

Project 2000: You've Got Mail
Create and send your customized Project 2000 Voting Records to neighbors,
coworkers and colleagues.
http://www.bipac.org/supporters/subscription/BiweeklyEIS/6_00_2P2K.html

DON"T MISS THE EVENT OF THE SUMMER!!
Chairperson Maria Little (UPS) and the BIPAC PAC Council request the
pleasure of your company at the PAC Council Kick-off Reception
June 28, 2000
4:30-6:00 p.m.
The University Club
1135 16th Street, N.W.
Washington, DC
Please come and see the new products and services BIPAC's PAC Council has to
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BIPAC has it all. . .this is one stop shopping at its best. Join us on the
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Win a Free BIPAC Membership or a free ticket to next year's Adam Smith
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Win a FREE "Fat Cat" CD from Aristotle and see who gives the big money!
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Don't forget to sign up for BIPAC's Political Briefing Series. The next
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Malenfant at 202-833-1880 or malenfant@bipac.org
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Adam Smith Commemorative Coins are Still Available!! Contact Deb Flavin or
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Starting April 2000, BIPAC brings you Elections Insight and all of the
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comprehensive analysis is available on the BIPAC website (www.bipac.org
<http://www.bipac.org>) in the candidate database.

To let us know what you think of the new Elections Insight-Online Edition
email Adrienne Gizicki at Gizicki@bipac.org <mailto:Gizicki@bipac.org>

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<mailto:payne@bipac.org>. Thank You!


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 09/01/2000
04:13 PM ---------------------------

GemanIX@aol.com on 09/01/2000 04:05:21 PM
To: Vince.J.Kaminski@enron.com
cc:
Subject: Many

Dear Vince,
1.I apologize for not having got back to Karla
earlier but Dauphine is not properly equipped yet.
2.The conference with Samuelson,Merton,Heath,
Ross,McKean etc was spectacular.512 academics
and practitioners came to College de France and
 were very grateful.
3.I was so worn out afterwards that I did not make
it to Houston.I just went to visit Alex after a week
conference on Quantitative Risk Management
where I was speaking at Carnegie Mellon
4.Another former PhD student of mine has been
testing and improving the software.He is great
and modest ;giving the papers I referee and the
conferences I go to,I do believe that we are still
ahead(or way ahead)today.We also beautifully
simplified the valuation of the hourly swings.
Obviously,in case of a problem,my reputation
and your esteem would be more valuable
than 30% of 90,000 USD (to be shared ...)
5.I declined RISK in Houston and NewYork
and am not sure I will have the pleasure
to see you in London.In all cases, we
should coordinate for Paris soon
Helyette


Is  anybody actually coming to DC for homecoming this year?

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-----Original Message-----
From: 	Shackleton, Sara
Sent:	07 December 2001 18:26
To:	Cooper, Edmund
Subject:	Enron Credit Inc.

Edmund:

I have not received anything from anyone in London or anywhere else regarding positions, etc.

I did speak with a Weil bankruptcy lawyer and there were many issues especially with respect to ENA positions (and I don't know where the high value credit positions are booked).  They believe that we may have structuring issues working through London and not directly with a purchaser.

Can you send the information over here?

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


Jeff & Miyung -

Steve Kean would like to build a database of offers made to California that
were rejected last year.  This would become public information to give to the
Bush Administration, Capitol Hill, etc.

1. Peaking Offers / Plants (incld Calpine) - Jeff can you work with Parquet
to build this.

2. Terms sales to SDG&E last year - Miyung can you run a press clipping
report to show what was not taken.  Also, Jeff can you please get the full
details (MW, Price, Term) for our offer to SDG&E last year.

Thanks.  Please call with questions.

Jim


Check out this link, and then read the story below.
http://www.telegraph.co.uk/et?ac=000625542412043&rtmo=aq4CTWTJ&atmo=99999999&p
g=/et/00/4/20/nmar20.html

 WAKE UP AMER  A, THIS IS WHY OUR
 FOUNDING FATHERS PUT THE SECOND
 AMENDMENT IN OUR CONSTITUTION

Where We're Headed
    By Robert A. Waters
****************************************************************

 You're sound asleep when you hear a thump outside your
 bedroom door.

 Half-awake, and nearly paralyzed with fear, you hear muffled
 whispers. At least two people have broken into your house
 and are moving your way.

 With your heart pumping, you reach down beside your bed
 and pick up your shotgun. You rack a shell into the
 chamber, then inch toward the door and open it.

 In the darkness, you make out two shadows. One holds a
 weapon--it looks like a crowbar.

 When the intruder brandishes it as if to strike, you raise the
 shotgun and fire. The blast knocks both thugs to the floor.
 One writhes and screams while the second man crawls to
 the front door and lurches outside.

 As you pick up the telephone to call police, you know you're
 in trouble. In your country, most guns were outlawed years
 before, and the few that are privately owned are so stringently
 regulated as to make them useless.
 Yours was never registered.

 Police arrive and inform you that the second burglar has died.
 They arrest you for First Degree Murder and Illegal
 Possession of a Firearm.

 When you talk to your attorney, he tells you not to worry:
 authorities will probably plea the case down to manslaughter.
 "What kind of sentence will I get?" you ask.
 "Only ten-to-twelve years," he replies, as if that's nothing.
 "Behave yourself, and you'll be out in seven."

 The next day, the shooting is the lead story in the local
 newspaper. Somehow, you're portrayed as an eccentric
 vigilante while the two men you shot are represented as choir
 boys. Their friends and relatives can't find an unkind word to say
 about them. Buried deep down in the article, authorities
 acknowledge that both "victims" have been arrested numerous
 times. But the next day's headline says it all:
 "Lovable Rogue Son Didn't Deserve to Die." The thieves have
 been transformed from career criminals into Robin Hood-type
 pranksters.

 As the days wear on, the story takes wings. The national media
 picks it up, then the international media.

 The surviving burglar has become a folk hero. Your attorney
 says the thief is preparing to sue you, and he'll probably win.

 The media publishes reports that your home has been
 burglarized several times in the past and that you've been
 critical of local police for their lack of effort in apprehending the
 suspects. After the last break-in, you told your neighbor that you
 would be prepared next time. The District Attorney uses this to
 allege that you were lying in wait for the burglars.

 A few months later, you go to trial. The charges haven't been
 reduced, as your lawyer had so confidently predicted. When
 you take the stand, your anger at the injustice of it all works
 against you. Prosecutors paint a picture of you as a mean,
 vengeful man.

 It doesn't take long for the jury to convict you of all charges.

 The judge sentences you to life in prison.

__________________________________________

 This case really happened.

***********************************
 On August 22, 1999, Tony Martin of Emneth, Norfolk, England,
 killed one burglar and wounded a second. In April, 2000, he was
 convicted and is now serving a life term.

 How did it become a crime to defend one's own life in the
 once-great British Empire?

 It started with the Pistols Act of 1903. This seemingly
 reasonable law forbade selling pistols to minors or felons and
 established that handgun sales were to be made only to those
 who had a license. The Firearms Act of 1920 expanded licensing
 to include not only handguns but all firearms except shotguns.
 Later laws passed in 1953 and 1967 outlawed the carrying of
 any weapon by private citizens and mandated the registration of
 all shotguns.

 Momentum for total handgun confiscation began in earnest after
 the Hungerford mass shooting in 1987. Michael Ryan, a
 mentally disturbed man with a Kalashnikov rifle, walked down
 the streets shooting everyone he saw. When the smoke cleared,
 17 people were dead.

 The British public, already de-sensitized by eighty years of "gun
 control", demanded even tougher restrictions. (The seizure of all
 privately owned handguns was the objective even though Ryan
 used a rifle.)

 Nine years later, at Dunblane, Scotland, Thomas Hamilton used
 a semi-automatic weapon to murder 16 children and a teacher at
 a public school.

 For many years, the media had portrayed all gun owners as
 mentally unstable, or worse, criminals. Now the press had a real
 kook with which to beat up law-abiding gun owners. Day after day,
 week after week, the media gave up all pretense of objectivity and
 demanded a total ban on all handguns.
 The Dunblane Inquiry, a few months later, sealed the fate of the
 few sidearms still owned by private citizens.

 During the years in which the British government incrementally
 took away most gun rights, the notion that a citizen had the right
 to armed self-defense came to be seen as vigilantism. Authorities
 refused to grant gun licenses to people who were threatened,
 claiming that self-defense was no longer considered a reason to
 own a gun. Citizens who shot burglars or robbers or rapists were
 charged while the real criminals were released. Indeed, after the
 Martin shooting, a police spokesman was quoted as saying, "We
 cannot have people take the law into their own hands."

 All of Martin's neighbors had been robbed numerous times, and
 several elderly people were severely injured in beatings by young
 thugs who had no fear of the consequences. Martin himself, a
 collector of antiques, had seen most of his collection trashed or
 stolen by burglars.

 When the Dunblane Inquiry ended, citizens who owned handguns
 were given three months to turn them over to local authorities.
 Being good British subjects, most people obeyed the law. The few
 who didn't were visited by police and threatened with ten-year
 prison sentences if they didn't comply.

 Police later bragged that they'd taken nearly 200,000 handguns
 from private citizens.

 How did the authorities know who had handguns?

 The guns had been registered and licensed. Kinda like cars.

 Sound familiar?

 WAKE UP AMERICA, THIS IS WHY OUR
 FOUNDING FATHERS PUT THE SECOND
 AMENDMENT IN OUR CONSTITUTION.

 - att1.htm