Bingaman, Senate Energy Chief, Will Block Bush Plan (Update1)
Bloomberg, 06/05/01

USA: TECO breaks ground on 599-MW Arkansas power plant.
Reuters English News Service, 06/05/01

Reuters to Provide Its Customers With EnronOnline Quotes
Business Wire, 06/05/01

UK: Intl bonds-Telecoms suffer despite positive market.
Reuters English News Service, 06/05/01

Natural gas generators considered to ease electricity demand, prices
Associated Press Newswires, 06/05/01

Waste Management to Start Trading Pulp and Paper (Update1)
Bloomberg, 06/05/01

Profile: Power Play, Who's to Blame for the Energy Crisis?; Lowell Bergman,
"Frontline" correspondent, Laura Holson and Joseph Kahn, The New York Times,
discuss the energy crisis
ABC News: Nightline, 06/04/01

Bingaman, Senate Energy Chief, Will Block Bush Plan (Update1)
2001-06-05 10:50 (New York)

Bingaman, Senate Energy Chief, Will Block Bush Plan (Update1)

     (Adds company names in fourth paragraph and details about
contributions in paragraph 23.)

     Washington, June 5 (Bloomberg) -- President George W. Bush
delivered his energy plan to Senator Frank Murkowski last month,
expecting the Alaska Republican to push it more or less intact
through the Senate and on to passage by the House.
     Now the package intended to boost oil and gas production and
ease some pollution controls is in the hands of Jeff Bingaman. The
New Mexico Democrat disagrees with Bush's approach and wants to
start fresh negotiations on what U.S. policy should be.
     Bingaman, 57, who's spent most of his 19 years in the Senate
out of the spotlight, will become chairman of the Energy and
Natural Resources Committee when Democrats take control of the
Senate later this week.
     Bush wants to make it easier for companies like Enron Corp.,
Exxon Mobil Corp. and BP Plc, to build power plants and pipelines
by easing regulations, and he's opposed to regulating the carbon
dioxide emissions blamed for global warming. Bingaman has
introduced legislation to cut emissions to curb global warming.
     The president's proposal to drill in the Arctic National
Wildlife Refuge, in trouble even with Republicans in charge, is
dead as long as Democrats have control. Bingaman has no plans to
consider it.
     Bush opposes caps on energy prices; Bingaman is cosponsor of
legislation to impose caps on wholesale energy prices in
California although, according to a spokesman, he'd prefer the
Federal Energy Regulatory Commission do that on its own.

                         Seeking Consensus

     Bingaman says rather than offer his own plan now, he'll try
to sit down with Republicans and negotiate something both sides
can agree on. There is already agreement on some proposals, such
offering tax credits to encourage domestic drilling and the use by
business of renewable energy technology, such as wind-powered
turbines.
     ``Obviously, I'm going to work for consensus,'' he said.
``There's nothing about much of these issues that should be
partisan.''
     Bingaman says he hasn't decided whether to push a single,
comprehensive energy bill or move issues separately. Democrats may
insist on separate bills for political purposes, said Tim Evans, a
senior energy analyst at IFR Pegasus.
     ``They'll say, `Let's get all of the most vulnerable
Republicans on record supporting drilling and see if they get re-
elected,''' he said.
     Whatever his decision, Bingaman won't meet Murkowski's goal
to have a bill for Bush to sign on July 4.
     ``I'm not anxious to have some artificial deadline so that we
can have a bill-signing ceremony on a holiday,'' Bingaman said.
``I don't think that's the way to legislate.''

                     Visionary or Do-Nothing?

     Throughout his career, Bingaman has made a practice of taking
time to study an issue before acting.
     ``He's something of a visionary,'' said Bruce Black, a former
law partner who became a federal judge in New Mexico after
Bingaman recommended his nomination. ``He sees trends.''
     Opponents see inaction.
     ``He doesn't accumulate much in the way of negatives by not
doing much,'' said John Dendahl, chairman of the Republican Party
of New Mexico.
     Bingaman is a politician who doesn't stray from party
positions, Dendahl said. ``He's not a maverick. He's always been
when the chips are down a straight Democratic voter.'' In 2000,
Bingaman voted with the party leadership 87 percent of the time on
votes in which the two parties took opposing positions, according
to data compiled by Congressional Quarterly.

                        Fundraising Success

     In the Senate, Bingaman's strategy has been to home in on
issues that have been neglected, such as school accountability and
defense research that has civilian uses, work with others, and not
hog the credit.
     ``He wouldn't try to beat it to the front of the class,''
said Ben Alexander, a Bingaman fundraiser.
     That approach appears to have worked: Republicans haven't
been able to budge Bingaman from his Senate seat by appealing to
New Mexicans' distrust of party-line politicians.
     With Alexander's help, Bingaman built a campaign fund that's
helped him fend off rivals. He raised $2.7 million for his 2000 re-
election bid compared with his Republican challenger's $669,000.
     The $295,527 Bingaman got from oil and gas companies and
electric utilities made him the industry's sixth-largest
congressional recipient in last year's elections, according to the
Center for Responsive Politics.
     The oil and gas industry gave $32.6 million overall last year
in campaign contributions. The top contributor, Enron, a pipeline
and energy-trading firm, gave $2.4 million. Exxon, the world's
largest publicly traded oil company, followed with $1.4 million
and BP, the third largest publicly traded oil company, donated
$1.3 million, according to the Center for Responsive Politics.

                     Comparison With Murkowski

     Environmentalists said Bingaman will balance conservation and
production concerns better than Murkowski.
     ``Murkowski wants to jam through an agenda'' to boost
production, said Alyssondra Campaigne, legislative director of the
National Resources Defense Council. Bingaman ``tends to be more
studious and thorough.''
     As chairman, Murkowski has pushed a comprehensive bill that
includes tax incentives to promote the use of alternative energy
and opening 1.5 million acres of the 19-million acres of the
Alaska refuge to oil and gas exploration.
     Bingaman has proposed leasing land in the Gulf of Mexico for
oil production, and that concerns environmentalists.
     ``It would put too much at risk in coastal resources,'' the
NRDC's Campaigne said.

USA: TECO breaks ground on 599-MW Arkansas power plant.

06/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, June 5 (Reuters) - TECO Energy subsidiary TECO Power Services held
a groundbreaking ceremony Tuesday on its 599-megawatt natural gas-fired power
plant in Dell, Ark.
Actual construction on the Dell Power Station began in March, the company
said in a statement.
One megawatt provides enough electricity for about 1,000 average homes,
therefore the Dell plant will provide enough electricity for about 600,000
homes.
National Energy Production Corp. (NEPCO), a subsidiary of Houston-based
energy giant Enron Corp. , is building the plant.
The Dell plant, along with a sister plant, the McAdams station in Kosciusko,
Miss., are designed to interconnect with the Entergy transmission system.
Both will sell electricity to wholesale customers in the Southeast and
Midwest, TECO said.
Dell is expected to begin commercial operation in the second half of 2002.
Tampa, Fla.-based TECO Energy units include Tampa Electric, Peoples Gas
System, TECO Transport, TECO Coal, TECO Coalbed Methane, TECO Propane
Ventures and TECO Solutions. TECO Power Services have announced projects to
serve customers in 18 states, spanning the southern half of the U.S.
TECO Energy has ownership in nearly 11,000 megawatts, operating, under
construction or in advanced stages of development worldwide.
- New York Power Desk, 646 223-6074, fax 646 223-6079, e-mail
Eileen.Moustakis@reuters.com.

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

Reuters to Provide Its Customers With EnronOnline Quotes

06/05/2001
Business Wire
(Copyright (c) 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--June 5, 2001--Reuters (NASDAQ: RTRSY), the global
information, news and technology group, today announced the launch of a new
service called "EnronOnline Real-Time Quotes." Subscribers of the service
have access on their Reuters screen to real-time EnronOnline quotes for
power, natural gas, crude oil and refined products, bandwidth, metals, coal,
emission allowances, sea freight and weather derivatives. In addition, the
quotes are archived so users can retrieve, track, view and analyze the
information over time using their Reuters desktop tools.
Users - including traders, analysts and others - can view bids, offers, and
midpoints as well as the high, low, closing midpoint and change from the
previous day. Using their Reuters tools, they can create charts, models,
position reports and other analysis. Subscribers will not be able to transact
on the quotes through Reuters.
Phil Lynch, Reuters America Co-Chief Executive Officer, said: "With the
increased volatility in energy markets and the growth in online commodities
trading, the EnronOnline Real-Time Quotes service will provide a
comprehensive source of market pricing for our customers."
Subscriptions to EnronOnline Real-Time Quotes are available to Reuters
customers globally. The service provides quotes on North American and
European markets. Quotes are available in real-time during EnronOnline's
market hours. In global markets such as crude oil, quotes are updated 24
hours a day, seven days a week. More information on this service is available
at www.reuters.com/enrononlinequotes.
Since the November, 1999 launch of EnronOnline, the world's largest commodity
trading website, customers have completed over one million transactions on
the site. Today, EnronOnline transacts over $3 billion daily in energy and
other commodities.

Note to Editors:

Reuters (www.about.reuters.com) premier position as a global information,
news and technology group is founded on its reputation for speed, accuracy,
integrity and impartiality combined with continuous technological innovation.
Reuters strength is based on its unique ability to offer customers around the
world a combination of content, technology and connectivity. Reuters makes
extensive use of internet technologies for the widest distribution of
information and news. Around 73 million unique visitors per month access
Reuters content on some 1,400 Internet websites. Reuters is the world's
largest international text and television news agency with 2,500 journalists,
photographers and camera operators in 190 bureaux, serving 160 countries. In
2000 the Group had revenues of (pound)3.59 billion and on 31 December 2000,
the Group employed 18,082 staff in 204 cities in 100 countries. Reuters
celebrates its 150th anniversary this year.

Reuters and the sphere logo are the trademarks of the Reuters group of
companies.

EnronOnline is a trademark of Enron Corp.

CONTACT: Reuters Nancy Bobrowitz / Felicia Cosby 646-223-5220 / 646-223-5223
nancy.bobrowitz@reuters.com felicia.cosby@reuters.com or Middleberg Euro RSCG
Bill Ferguson / Ayesha Talwar 212-699-2742 / 212-699-2741
williamf@middleberg.com ayesha@middleberg.com
14:07 EDT JUNE 5, 2001

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

UK: Intl bonds-Telecoms suffer despite positive market.

06/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, June 5 (Reuters) - European telecoms firms were hit by rumours of new
issuance and profit taking in the international bond markets on Tuesday while
other industries enjoyed stable prices on good market sentiment.
The Reuters CorpTop index and traders had telecoms spreads - the difference
between the yield on corporate and similarly dated government bonds - between
two and four basis points wider on Tuesday.
Industrial companies and utilities, however, traded two to three basis points
tighter.
The fall in telecoms bonds prices was partly caused by strong indications
from investment banks that Deutsche Telekom is on the verge of launching a
deal for between five and 10 billion euros.
"That rumour has caused some repricing today bu we also have profit taking
after a month-long rally in telecoms prices caused patly by a fall in equity
volatility and partly by a feeling that the harsh part of the storm may have
passed," said one London-based trader.
Telecoms bonds have benefitted from a feeling among many investors that the
immediate danger of credit rating downgrades and further bad news has now
passed.
"Telecoms is a roller coaster but maybe the twists and turns are a little
more gentle than they were four months ago," said one Paris-based trader.
"Also remember that many of these companies are household names and that
attracts the retail market while the possibility of getting a heavier coupon
on further downgrades attracts those out looking for risk," she added.
A good run, however, has triggered some selling as investors look to cash in.
British Telecom's 6.125 percent, February 2006 bond, for example, was trading
two basis points wider on the day, traders said.
Meanwhile, Deutsche Telekom's 6.125 percent July 2005 issue was trading out
seven basis points by 1400 GMT.
Investment banks have been in talks with the German telecom giant for several
months regarding a jumbo bond issue, but Deutsche Telekom's need to make
coupon repayments on outstanding bonds in June and July mean an announcement
is expected soon.
Bankers said they expected the bond to be entirely denominated in euros as
this is where the operator can achieve the best cost of funding.
Deutsche Telekom issued a $14.6 billion transaction last year which was the
largest corporate bond sale ever at the time.
Moody's put Deutsche Telekom's A2 long-term rating on review for a possible
downgrade in March while S&P placed its A-rating on review for a downgrade in
February.
In the primary market insurance firm Swiss Life launched a 300 million euro,
0.50 percent exchangeable bond which can be switched for shares of HSBC
Holdings or Swiss Life itself.
An official from lead manager Lehman Brothers said that the bond was three
times oversubscribed and that a 50 million euro greenshoe - extra bonds held
by the underwriter and released if there is sufficient demand - was also
sold.
The bond was entirely sold to European investors and all buyers where from
major financial institutions, the official said.
Elsewhere in the primary market the European bank for Reconstruction and
Development launched a one billion euro five-year deal. It priced at 52 basis
points over the 4.625 percent May 2006 U.S. Treasury.
Meanwhile, Energy giant Enron sold 10 billion yen due 2004.
British supermarket chain Sainsbury announced that it plans to launch a
benchmark euro bond in the near future. Deutsche Bank and HSBC will lead the
transaction.

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

Natural gas generators considered to ease electricity demand, prices

06/05/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

EUGENE, Ore. (AP) - Natural gas generators could ease demand and prices for
electricity in the southern Willamette Valley, where businesses and utilities
are bracing for skyrocketing rates and power shortages.
The biggest proposal is a 500-megawatt power plant that Texas energy giant
Enron Corp. may build on industrial property in the Coburg area, possibly on
the site where Willamette Industries runs a wood products plant.
By comparison, Eugene and neighboring Springfield use a total of about 450
megawatts.
The rest of the proposals are for smaller operations that mostly would be
connected to local businesses and mills.
"Everyone's looking for power," says Frank Lambe, general manager of the
Emerald People's Utility District.
Even if the Enron plant is built within Emerald's service territory, it
doesn't mean the local utility would get any of the power.
Enron, with revenues of more than $100 billion, typically sells power to the
highest bidder.
In fact, an Enron plant likely would require Emerald to buy another 10
megawatts of electricity on the open market to run the plant's lights,
heating and other needs.
Emerald board member Katherine Schacht, who represents the Coburg area, said
she's concerned that the power from the Enron plant would go to California
rather than helping meet local energy needs.
She also said "there are a lot of questions that need to be asked and
answered" about the plant's impact on water, air quality and other issues.
The Enron plant would be similar to those now under construction in the
Hermiston area and in Klamath Falls. Those plants are several stories high,
emit large amounts of carbon dioxide and consume between 2,000 and 2,400
gallons of water a minute.
Carbon dioxide, a greenhouse gas, isn't a regulated pollutant.
Enron and the businesses considering their own generators would buy natural
gas from the main north-south pipeline that runs down the Willamette Valley.
The plans are only preliminary, but they illustrate growing concern about
future price increases that could reach 100 percent this fall and worries
that the region will suffer energy shortages for the next several years.
Many businesses also see a chance to make money by generating electricity in
a market with wholesale prices that have jumped over $300 a megawatt - 10
times the going rate a year ago.
Enron hasn't applied for any permits for a plant in the Eugene area, nor has
the company given the state an official notice that it intends to build the
plant.
But Enron has notified the Bonneville Power Administration, the federal power
marketing agency in Portland that supplies the Northwest with half its
electricity, that it is considering building the plant.
If Enron does build a plant in the Eugene area, it would need a permit from
the Lane Regional Air Pollution Authority to emit nitrogen oxides and any
other contaminants.
A large plant also would need approval from the Oregon Energy Facilities
Siting Council, as well as local jurisdictions if it requires land use
changes.

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

Waste Management to Start Trading Pulp and Paper (Update1)
2001-06-05 16:15 (New York)

Waste Management to Start Trading Pulp and Paper (Update1)

     (Adds closing share price.)

     Houston, June 5 (Bloomberg) -- Waste Management Inc., North
America's largest trash hauler, formed a pulp- and paper-trading
group to help control the risk of price swings from its recycling
business.
     The largest recycling company, Houston-based Waste Management
expects trading to begin in the third quarter, the company said in
a Business Wire release. It runs 190 facilities for collecting
such items as paper, plastic, glass and aluminum.
     Trading will begin gradually as the company emphasizes
management of the 4 million tons of paper it handles annually,
President A. Maurice Myers said in the statement.
     Other companies also have begun trading in pulp and paper
items such as old newspapers and corrugated containers. Enron
Corp., an energy-trading and pipeline company, is applying its gas-
and power-trading models to paper. It owns a newsprint mill in
Garfield, New Jersey, and another in Canada.
     Waste Management shares rose 56 cents to $28.40. The company
had sales of $12.5 billion last year.

Profile: Power Play, Who's to Blame for the Energy Crisis?; Lowell Bergman,
"Frontline" correspondent, Laura Holson and Joseph Kahn, The New York Times,
discuss the energy crisis

06/04/2001
ABC News: Nightline
(c) Copyright 2001, American Broadcasting Companies, Inc. All Rights Reserved.

Announcer: June 4th, 2001. CHRIS BURY host:
Rolling power blackouts, bankrupt utilities, skyrocketing electricity prices.
Unidentified Man #1: It is the most volatile commodity in the world.
BURY: Are power generators gouging consumers?
Unidentified Woman #1: I think it's pretty appalling that the folks who sell
us power can charge whatever they want.
Mr. KENNETH L. LAY (Chairman, Enron): And every time there's a shortage or a
little bit of a price spike, it is always collusion or conspiracy or
something. I mean, it always makes people feel better that way.
BURY: And right in the middle, a federal agency you've probably never heard
of.
Mr. CURTIS HEBERT (Chairman, Federal Energy Regulatory Commission): They
didn't build this monopolistic system overnight, and we won't change it
overnight either.
BURY: Tonight, Power Play, Who's to Blame for the Energy Crisis?
Announcer: From ABC News, this is NIGHTLINE. Substituting for Ted Koppel and
reporting from Washington, Chris Bury.
BURY: California is known as the great American incubator. From hem lines to
Hula-Hoops, the Golden State gives birth to trends that often spread east.
That is why so many states are paying close attention to California's
troubled attempt at deregulating electricity. Last week, California Governor
Gray Davis asked President Bush for help in the form of a price cap on power
companies. The president said no. Now Governor Davis is threatening to sue
the federal agency that regulates electricity prices. More on that later.
But first, the results of a new ABC News/Washington Post poll. It suggests
that President Bush is developing an energy problem. When asked what they
think of the president's performance on energy, a clear majority, 58 percent,
say they disapprove. That's up 15 percent since Mr. Bush released his energy
plan. When asked if they think the United States is heading into an energy
crisis, six in 10 Americans answer yes.
TEXT:
ABC News POLL The Washington Post
Margin of Error +-3.0%
How do you rate the president's performance on energy?
June 3 May 13
Disapprove 58% 43%
Do you think the US is heading into an energy crisis?
Yes 61% No 36%
BURY: California is already there. For months now, The New York Times and the
public broadcasting program "Frontline" have teamed up to investigate. Their
collaboration, "Blackout," airs tomorrow night on many PBS stations. It
documents a colossal mismatch in the brand new game of buying and selling
power on the open market. It's like the New York Yankees against the Toledo
Mud Hens.
Unidentified Woman #2: We didn't use his five because their minimum was, you
know, higher than what we were willing to pay.
Unidentified Man #2: I'll sell you 108 now.
BURY: (VO) On one side, companies such as Enron, the Texas energy broker,
trade electricity like any other commodity. A sophisticated trading operation
buys and sells billions of dollars worth of energy every day. It's the
largest company of its kind in the world.
Unidentified Man #3: See what I'm saying?
KELLY: CRS. This is Kelly.
BURY: (VO) On the other side, in this converted department store in
Sacramento, is California's trading team.
Unidentified Man #4: This is the operations center. This is the--this is the
location where we make energy purchases and fill the state of California
energy requirements.
BURY: (VO) Here, employees drafted from the state's water department go
head-to-head with the pros from Enron and other companies. Since 1999, the
cost to California has skyrocketed from $7 billion to an estimated $60
billion this year, an increase of 750 percent. And the demand for
electricity, up less than 5 percent.
(OC) In their documentary, reporters for The New York Times and "Frontline"
address a fundamental question, who's to blame? Narrating this segment is
"Frontline" correspondent Lowell Bergman.
Unidentified Man #5: Our forecast reserves look like they'd be pretty thin
over the peak as well.
Unidentified Man #6: How much is...
LOWELL BERGMAN reporting:
(VO) The power industry blames the high prices on shortages brought on by
California's failure to build any major power plants over the last decade,
despite a booming economy.
Mr. LAY: I mean, we have a supply/demand imbalance. Too much demand, too
little supply in California.
BERGMAN: (VO) Not everyone agrees. Consumer advocates in California accuse
the generators of actually withholding supply.
Ms. NETTIE HOGE (Executive Director, TURN): The idea that all of a sudden we
had a supply crunch is preposterous. What happened is, all of a sudden, the
new plant owners and the traders, like Mr. Lay's organization, looked at the
data and figured out how to manipulate the market. As soon as that happened,
the prices never went down again. If it was totally a supply problem, why
would we have excess prices at 5:00 in the morning on Christmas Day when
nobody but Santa is working?
BERGMAN: (VO) The generators, in turn, say they shut down plants for routine
winter maintenance.
Mr. LAY: Every time there's a shortage or a little bit of a price spike, it's
always collusion or conspiracy or something. I mean, it always makes people
feel better that way.
BERGMAN: But you know as well as I do that the price--it's nice for a
business.
Mr. LAY: Yeah.
BERGMAN: You're in the business of--of making money for your shareholders.
Mr. LAY: Mm-hmm.
BERGMAN: Right, as a company?
Mr. LAY: Yeah.
BERGMAN: So you would be foolish, as you said, to turn down the kind of money
you could make this past winter in California. Is--isn't there a...
Mr. LAY: I--I--I think you put words in my mouth out there.
BERGMAN: OK.
Mr. LAY: I said we--we made some money in California. We made some money
across the country and around the world. I mean, and as I tell my friends in
California, Enron was doing quite well before California imploded.
Unidentified Man #7: So you can't blame the Enrons. I mean, they're the
guys--that's--that's what they do. They try to make as much money from the
money that they get invested. You blame the regulators.
BERGMAN: (VO) Across the country, tucked in an out of the way building behind
Union Station in Washington, DC, sits the Federal Energy Regulatory
Commission or FERC. FERC's commissioners are appointed by the president and
control a $250 billion energy sector critical to America's economy. With the
coming of deregulation, state control over wholesale electricity rates passed
to the federal government, making FERC the final arbiter of just and
reasonable rates. It's a power FERC has been reluctant to use.
Curt Hebert is a protege of Senator Trent Lott, who convinced President
Clinton to appoint Hebert to the FERC in 1997. In January, President Bush
made him the FERC chairman, and Hebert has made no bones about where he
stands on free markets.
Mr. HEBERT: The rules of competition govern that economies work, that choice
works. It's why we're American. We inherently like choice. It's why we left
the mother country. We didn't like the rules they were setting. We wanted to
make our own rules. We want our own choices and we believe that works.
BERGMAN: OK, but is electricity different?
Mr. HEBERT: It's a transition . It takes some time. Look, they didn't build
this monopolistic system overnight, and we won't change it overnight either.
Mr. WILLIAM MASSEY (FERC Commissioner): Without some effective price control
this summer, I fear for the worst.
BERGMAN: (VO) William Massey is a FERC commissioner, a Democrat, who has
found himself in opposition to his chairman.
Unidentified Man #8: Mr. Massey, what is the nub of the disagreement that you
have with Mr. Hebert?
Mr. MASSEY: I think what it boils down to is a philosophical disagreement
about the role of my agency in ensuring just and reasonable prices.
I think it's long past time for this agency to step in and--and impose a
temporary time out on the markets.
Mr. HEBERT: Well, that is the problem because these people are saying
temporary, but they don't mean temporary. It's kind of like the temporary
rent control you have in New York. It's not temporary at all. Matter of fact,
you know, in Washington, DC, we don't do temporary very well, and that's a
problem.
BERGMAN: (VO) In fact, late last year, after six months of unrelenting high
prices in California, the FERC finally did declare California's rates unjust
and unreasonable, but took no action.
Governor GRAY DAVIS (Governor, California): So they found these people guilty
a year ago. They just haven't agreed on the sentence.
BERGMAN: Well, we talked with Curt Hebert. And we got...
Gov. DAVIS: Well that's, you know.
BERGMAN: That's what?
Gov. DAVIS: Lots of luck.
BERGMAN: What do you mean, "Lot's of luck"?
Gov. DAVIS: Because...
BERGMAN: He's the federal--he's the guy you are turning to to give you the
money.
Gov. DAVIS: He is the chairman of the commission. But he has not been overly
sympathetic to California. He's more of an ideologue than a problem solver.
BERGMAN: Well, he's saying you just want him to give you short-term relief,
price caps, which won't solve the problem.
Gov. DAVIS: Problems meaning fattening the balance sheet of already
enormously wealthy energy companies.
BURY: How much blame do the energy companies really deserve?
BERGMAN: Watch your--your heating bills, your natural gas bills, which are,
to a certain extent, reflected in your electricity bill. And don't think that
this couldn't happen where you are.
BURY: And how much of this energy crisis did California bring upon itself?
Those questions when we come back.
Announcer: This is ABC News: NIGHTLINE, brought to you by...
(Commercial break)
BURY: Joining us from Boston, Lowell Bergman, the correspondent for
tomorrow's "Frontline" broadcast. From our Los Angeles bureau, Laura Holson,
a business correspondent for The New York Times, who's been covering the
California energy crisis. And here in Washington, Joe Kahn, who reports on
energy and economics for The New York Times.
Laura, just before the break, we heard California Governor Davis blaming the
energy companies and the federal regulators. How much of his argument is
sinking in. In other words, whom do Californians blame for this?
Ms. LAURA HOLSON (The New York Times): The interesting thing is Californians
blame everybody for this ap--for what has happened with the energy crisis.
They blame the governor for not responding quickly enough to a crisis that
started, you know, a year ago, if you really, you know, look at when prices
starting going up. They are angry at their utilities who they feel have
failed them. They have often had very close kind of paternal relationships
with their utilities and they feel that they've been cheated. And they are
very angry with the power generators, in particular, who they feel are
charging them just exorbitant amounts for energy.
In particular, there was a company last week, a power generator that said it
charged consumers, rather the utilities, 4,000, nearly $4,000 per megawatt
hour, which is enough to light a thousand homes for one hour. And when they
heard this, they were outraged. They just thought, you know, `How can this
be? How can we get,' in their terms, kind of ripped off by power generators
who are using them to make, you know, a lot of money.
BURY: Joe Kahn we heard those poll numbers from this survey out tonight
suggesting that President Bush has a bit of a public relations problem on
energy. How is that going to affect the politics here in Washington?
Mr. JOSEPH KAHN (The New York Times): Well, clearly the--President Bush and
the White House are calculating that by the time people have to go to the
polls to select a new president, a slew of new power plants will be online in
California. Electricity prices, presumably, will come down quite a bit and
their free market stance on this will not ultimately cost him at the polls.
It's not as clear that Republicans in the Congress have the same commitment.
This has already been a very turbulent time in Washington with the Democrats
now in control of the Senate. I think you can expect to see a legislative
initiative by the Democrats to introduce some kind of price caps in
California. Some Republicans may sign on to that. Some have already indicated
that they will. It's going to be a real knockdown political flight--fight in
Washington over what the strategy ought to be.
BURY: Lowell Bergman, talk a little bit about that free market activity that
Joe just mentioned. We saw the clip from your documentary with the--the
traders from Enron pitted against the--the buyers from California. And I must
say, it really did look like a mismatch.
BERGMAN: Well, in fact, some of the people at Enron told us that they welcome
the day when PG&E and Southern California Edison, the regular utilities get
back in the marketplace because they do feel like they've got them, if you
will, outgunned. And--but I should point out to the audience, that when Laura
was talking about this $3800 a megawatt hour, which was Duke Energy Company,
the normal price, if you will, the standard price for a megawatt hour was
around 40 or less. So the level of profit that we're talking about is what
people are upset about. And the problem here is--is primarily that in a free
market and the way that the marketplace in California is set up in
particular, there's no limit to what could be--could be charged when you get
close to that area of scarcity with electricity. Electricity truly is
different and as Jeff Skillings says in our documentary, he's the CEO of
Enron, it is the most volatile commodity in the world.
BURY: Yet, at the same time, Joe, we are seeing electricity traded as if it
were oil or soybeans or steel. I mean, how is electricity different?
Mr. KAHN: Well, for economic reasons, it's different in a--in a couple of key
respects. For one thing, it's an absolutely vital commodity. People aren't
prepared to do without it. Moreover, electricity powers every other part of
the economy. So, it's one of these sort of fundamental rights that we have.
In fact, as far back as the New Deal, Franklin Roosevelt made clear that
electricity was so important that it would be subject to federal legislation
guaranteeing everybody in this country just and reasonable electricity
prices.
BURY: But just and reasonable electricity prices, Laura, do you want to pick
up the question of well, who determines what's just and reasonable here?
Ms. HOLSON: Well, it's very clear that President Bush believes that the
market, you know, sets what's just and reasonable. And, you know, that has
not been what Governor Davis has said at all. He believes that because this
is a commodity that people, you know, believe is guaranteed that there should
be some price cap on it. It's an interesting, if you will, situation when
business and politics kind of intersect. Governor Davis said very early on
that he did not want two things to happen in California. One is that the
utilities would go bankrupt and the second was that rates would be raised for
consumers. And he's in a very tight spot right now because those two things
that he did not want to happen indeed have happened. And it only looks like
it will get worse this summer when experts have said Californians can expect
another 260 hours of blackouts.
BURY: Laura, we have to take a break. But when we come back, we want to
address the question of whether power companies are doing what just comes
naturally to them. Back with our guests in a moment.
(Commercial break)
BURY: We're back with "Frontline"'s Lowell Bergman and Laura Holson and Joe
Kahn of The New York Times.
Joe, aren't these power companies doing exactly what they are supposed to be
doing, which is maxi--maximizing profits and to get the biggest return for
their shareholders?
Mr. KAHN: Sure. That's their responsibility. They--they have no excuse for
arbitrarily lowering the price that they could charge for electricity if the
market will bear a higher price.
BURY: Lowell Bergman, in your documentary, do you find any evidence that the
power companies are--are gouging consumers or doing anything illegal?
BERGMAN: Well, illegality, no one really has any serious evidence, although
there have been lots of allegations and there's been lots of speculation
about it. But we should also point out in the documentary and in The Times
that some of the companies are starting to realize, it seems, that even
though they are owed hundreds of millions, in some cases $500 million or more
still by these bankrupt utilities, they're going to have to take a hair cut
as Governor Davis describes it. They're going to have to make some bargain.
And I think we may...
BURY: Let me jump in there. What do you mean they're going to have to get a
hair cut?
BERGMAN: Well, apparently, that's Governor Davis's way of telling them that
they're going to have to take less to a--less than a full dollar payment for
what they are owed, and that there has to be some kind of settlement here of
between the various parties, other we're not--otherwise we won't see any
progress.
BURY: Lowell, one of the old cliches in investigative reporting is follow the
money. And much has been made of this argument that the Bush administration,
accusations have been made, that the Bush administration is too cozy with the
power companies and the power company regulators. What did you find in your
reporting?
BERGMAN: Well, we found that Vice President Cheney was very up front about
it, I mean, about his relationship with Ken Lay, the head of Enron, the fact
that he built a stadium for Enron when he was head of Halliburton. You know,
the vice president is the first CEO of a Fortune 500 company to hold
presidential office in the history of the United States. So--but they are
very open and up front and balance this relationship with their friends and
with the people who they feel comfortable with.
BURY: Laura Holson, this idea that so many Texas companies are profiting from
California's misery, as it were, I suppose Californians find that
particularly infuriating.
Ms. HOLSON: It's funny, in the San Francisco Bay area when I was growing up
near there, there was this great rivalry between the San Francisco 49ers,
which is, as we all know, a football team and the Dallas Cowboys. And that
seems to be replaced, if you will, with consumers in California who look at
Texas gen--at, you know, a lot of the power generators, which are based in
Texas, and who they feel now are just, you know, making a lot of money off
them. It's--there's always been a rivalry between those two states. And now I
think it's deeply personal because it's hitting consumers, or as they believe
it, it's hitting them in their pocket books.
BURY: Joe Kahn, how long before these new power plants are going to be coming
on line? And before they do, or in the time before they do, what--what is it
that the federal government can do to help California out?
Mr. KAHN: Well, it--it will probably be about 18 months before sufficient new
power comes online in California to start substantially changing the supply
and demand equation there. And that's a very speedy pace. That's with a very
expedited permit process for new plants. The governor in California has put a
lot of effort into building new plats--plants quickly.
BURY: So what happens between now and then?
Mr. KAHN: Well, that's the question. That's the debate. The Federal Energy
Regulatory Commission has the power under the Federal Power Act, in fact some
people argue it has the obligation under the Federal Power Act to ensure that
just and reasonable electricity rates prevail in California at all times. It
can't just selectively choose the times. And it has already found at the end
of last year that rates in California are unjust and unreasonable.
BURY: So what's it doing about that?
Mr. KAHN: Well, it's--it's tried a variety of compromise measures so far,
very limited price controls on certain kinds of electricity sales during
emergency hours. So far that appears to be an insignificant contribution to
reducing the overall electricity bill in California.
BURY: Laura, Governor Davis is demanding wholesale price controls. President
Bush has made it pretty clear that he's not going to lean that way. What
options does Governor Davis have?
Ms. HOLSON: You know, it's--again he's stuck in this place where it--it
doesn't look like he's got any kind of real out. I mean, he can try to
demand. He can demand as much as he wants from the power generators, but if
the federal government doesn't step in, he really can't do anything. The
interesting thing, at least I see kind of going forward, is how Californians
have really adapted to a really, you know, awful situation. There's a law
that's being proposed right now in California in which businesses will know
months in advance whether their neighborhood is going to be impacted by a
blackout so they can plan. I mean, we've almost turned into--if anybody
remembers traveling through Italy during their college days, you always kind
of knew when the airlines or the trains were going to go on strike because
they told you a day ahead of time. And that's very much what's happening in
California where they're warning people, you know, two days, an hour, you
know, one day ahead of time so that they can prepare.
BURY: That's a pretty dark scenario. Lowell, we just have a few seconds left,
what lessons should the rest of the country take from California's crisis?
BERGMAN: Well, watch your--your heating bills, your natural gas bills, which
are to a certain extent reflected in your electricity bills. And don't think
that this couldn't happen where you are. And I think that the industry itself
is beginning to understand that the crisis in California may, in fact, impact
on the future of deregulation nationally.
BURY: Lowell Bergman, Laura Holson, Joe Kahn, thank you so much for joining
us tonight.
BERGMAN: Thank you.
Mr. KAHN: Thank you.
Ms. HOLSON: Thank you.
BURY: When we come back, an update on a NIGHTLINE broadcast from just over a
month ago.
Announcer: To receive a daily e-mail about each evening's NIGHTLINE and a
preview of special broadcasts, logon to the NIGHTLINE page at abcNEWS.com.
(Commercial break)
BURY: In May, we profiled the case of death row inmate Johnny Paul Penry,
convicted of murdering the sister of a former pro football player. Today, the
Supreme Court overturned Penry's death sentence. It ruled, six to three, that
the jury did not have clear instructions on how to weigh his mental
retardation when it sentenced him. The court will take up the broader issue,
whether executing the mentally retarded is cruel and unusual punishment, in
its next term.
That's our report for tonight. I'm Chris Bury in Washington. For all of us
here at ABC News, good night.

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


That's probably a good idea.  I'll wait until I get our comments.

 -----Original Message-----
From: 	Harris, Steven
Sent:	Friday, March 01, 2002 3:21 PM
To:	Donoho, Lindy
Subject:	RE: Draft - SoCal/Topock Announcement

Do we need to run this by SoCal?

 -----Original Message-----
From: 	Donoho, Lindy
Sent:	Friday, March 01, 2002 3:16 PM
To:	Watson, Kimberly; Lindberg, Lorraine; Lohman, TK; Lokay, Michelle; McConnell, Mark; Y'barbo, Paul; Kilmer III, Robert; Harris, Steven
Subject:	Draft - SoCal/Topock Announcement

Here's a simple first draft.  I didn't know how much detail we should get into.

Ramona, am I using the correct terminology?  They are not going to confirm in Cycle 1.  They are just going to let us fill-in where El Paso filled-up all the capacity downstream.

 << File: SoCal-TopockScheduling.doc >>

Let me know your comments.

Thanks!


Start Date: 4/23/01; HourAhead hour: 22;  No ancillary schedules awarded.
Variances detected.
Variances detected in Generation schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042322.txt

---- Generation Schedule ----
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 22 / Preferred:   4.00 / Final:   3.89)
  TRANS_TYPE: FINAL
  SC_ID: SierraPowe
  MKT_TYPE: 2
  TRANS_DATE: 4/23/01
  UNIT_ID: VESTAL_6_WDFIRE
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 22 / Preferred:   0.00 / Final:   0.00)
  TRANS_TYPE: FINAL
  SC_ID: EES
  MKT_TYPE: 2
  TRANS_DATE: 4/23/01
  UNIT_ID: BADLND_7_PL1X2


Michelle

please can you review the attached feedback forms for YE01 sign off. The descriptors were not changed from MY 01 (not attached).

PAPER COPIES ON THE WAY.

call me if you have any questions.

thanks

Elspeth Inglis
Global Performance Management Team
work:    (713) 853 7636
mobile:  (713) 301 3781


What is the starting date for delivery?

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


I just changed the rate on Tenn/transport uage deal 235293 from $.11 to
$.0116.  We should get back 85,155 x $.0984==$8,300 tonight.
---------------------- Forwarded by Chris Germany/HOU/ECT on 07/17/2000 12:41
PM ---------------------------

Chris Germany
07/17/2000 09:39 AM
To: Alicia Perkins/HOU/ECT@ECT
cc: Dick Jenkins/HOU/ECT@ECT
Subject: Transport Usage

I just changed the rate on Algon/transport usage deal 233358 from $.26 to
$.0206.  We should get back 155,000 x $.2394 == $37,000 tonight.


Greg, I had a message to call Joe Dial yesterday.  I haven't called him back
yet.  Should I wait to hear from you?  Please advise.  Thanks, SRS

From: Greg Piper/ENRON@enronXgate on 03/08/2001 02:42 PM
To: Jeff Skilling/Corp/Enron@ENRON
cc: Philippe A Bibi/ENRON@enronXgate

Subject: FW: eWorldTradeX

FYI.

We are meeting with Joseph Dial next Tuesday, a former CFTC commissioner and
friend of the Wendy Graham.  He had sent you a letter on March 1 about an
options and futures exchange he was building called eWorldTradeX, Inc.  I
don't know what he wants, but we are following up on it and we will let you
know about it, if necessary.

Thanks.

GP
 -----Original Message-----
From:  Spiller, Tina
Sent: Thursday, March 08, 2001 11:08 AM
To: Piper, Greg
Subject: eWorldTradeX

Mr. Skilling is traveling next Tuesday, so he won't be participating in the
meeting with Mr. Dial.  I've confirmed Bibi and Zipper.

Tina Spiller
Assistant to Greg Piper
Enron Net Works Office of the Chairman
713.853.5746
tina.spiller@enron.com


Note: Transactions are in pairs, therefore gas transactions for Mar 7 is 10 etc.


please print
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/02/2000
12:02 PM ---------------------------

	From:  George McClellan                           10/01/2000 02:36 PM

To: Mike McConnell/HOU/ECT@ECT
cc: Jeffrey A Shankman/HOU/ECT@ECT, Stuart Staley/LON/ECT@ECT, Joseph P
Hirl/AP/ENRON@ENRON
Subject: Japan - Asia markets

Mike -

Thanks for your voice mail of Friday regarding your trip to Tokyo.  As we
have discussed we are in the process of identifying a strategy and forming a
team to lead our Asian coal efforts.

We view continental Europe and Japan / Asia as the next areas of growth for
our group.  One of our greatest challenges has been identifying and
attracting to our group the best "Enron" people, and strong industry
players.  We have made some progress with the recent addition in Houston of 3
- excellent mid-marketers with industry backgrounds.  However we are still in
the process of building a strong European organization, and staffing Sydney
with a core group of Enron traders and industry mid-marketers.

Clearly Japan represents the single largest market for coal in Asia.  The
other major markets are Taiwan, Korea, Hong Kong and to a degree India.  The
largest coal exporters in the region are Australia, Indonesia, China and
Russia.  Our staffing strategy for Asia is to initially build a core trading
and marketing group centered around 2 - 3 experienced "Enron" guys in Sydney,
add  mid-marketers with industry experience in Sydney and Tokyo, and hire  2
- locals in China to look after our deliveries from PRC suppliers.

Our experience to date has shown that industry guys orphaned in a regional
office face certain failure. As a result we are trying to avoid the mistake
we have made in the past of hiring local industry players, and then failing
to provide them with proper direction and support.

We are on target to relocate at least 2 - "Enron" guys to Sydney by Jan -
Feb.  We will continue to search for strong industry guys in Sydney, and make
any necessary changes to our existing structure there.  We have not yet
started to identify qualified people with industry experience in Tokyo - but
will obviously do so.  I will get with Stu and Joe to discuss using a local
head-hunter, and advertising in trade journals etc.

We share your views on our potential for growth in Asia and Japan, and are
working to put a team in place that will be focused on developing a strongly
competitive, sustainable  business in the region.  Our initial goal is to
develop Asia to the point where Sydney is running it's own books for both
coal and freight, and we are a major supplier in the region.

Stu and I will be in Hong Kong and Beijing Oct.  7 - 11 to meet with the
Chairman of Shenua Coal, and senior management of Shanxi Coal, China Light &
Power, and Hong Kong Electric.  The primary purpose of the trip is to
encourage Shenua to perform in accordance with their obligations under our
supply agreement; introduce ourselves to Shanxi; assure CLP that we will
perform under our term sales agreement; and start negotiations with HKE for a
term sales contract.

I will coordinate my schedule with Joe, and will spend a few days in Tokyo
(Oct. 12 - 13) at the end of the PRC trip.  We can coordinate our efforts,
put a time line in place for staffing the Tokyo office with qualified coal
guys, and discuss our overall strategy for entering the Japanese market.

I will be in the office Mon. - Weds., and am available to meet with you and
Jeff to discuss the above at your convenience.

 Thanks,

George


scheije@selectenergy.com writes to the NYISO_TECH_EXCHANGE Discussion List:

When it is sorted out would the ISO please plan on explaining the SCD
failure on the 16th in necessary detail?

Thanks

Jim


The topic will the the western natural gas market.  I may have overhead
slides.  I will bring handouts.


Submit a Pac request and keep Tom posted on when and where.

	Cynthia Sandherr
	09/07/2000 05:05 PM

		 To: Steven J Kean/NA/Enron@Enron, Joe Hillings/Corp/Enron@ENRON, Elizabeth
Linnell/NA/Enron@Enron, Joe Hillings/Corp/Enron@ENRON, Carolyn
Cooney/Corp/Enron@ENRON
		 cc: Rosalee Fleming/Corp/Enron@ENRON, Thomas E White/HOU/EES@EES
		 Subject: Congressman Edwards (D-TX)

Steve:  Congressman Chet Edwards is having a fundraiser in Houston, October
10th, 5:30-7:30 p.m. at Reliant's Bruce Gibson's home in River Oaks (2178
Troon).  Drayton McLane will attend.  They are looking for $1000 to host or
$500 sponsor.  Congressman Edwards has been very helpful with our defense
procurement issues, and we have contributed to him recently.  The
Congressman's main request was to include Ken Lay's name on their invitation
which Ken Lay graciously agreed to do so the Congressman is most pleased.
Thus, the remaining request to attend and give additional money is up to you,
although if we have room in our budget and Ken Lay or Tom White were
available, I would recommend their attendance.


Thanks for the reply Sherri.  I missed Jeff last night at Paul's so we
didn't get a chance to talk.  Paul and I would appreciate the opportunity to
set up a meeting before the holidays.  I know it's going to be tough given
everyone's tight schedules, but please find below some dates that work for
Paul and me:

Dec 11 afternoon; Dec 12 afternoon; Dec 13 10:30-2:00; Dec 15 afternoon; Dec
18/19/21 all day

Please let me know if any of these dates work so we can set a firm time.  If
Jeff wants to combine with lunch, that would be great too.  Thanks/Neil.

-----Original Message-----
From: Jeff.Skilling@enron.com [mailto:Jeff.Skilling@enron.com]
Sent: Wednesday, December 06, 2000 10:50 AM
To: Neil Kelley
Subject: Re: Genesis Park

Dear Neil,

Jeff asked me to let you know that he will be at Paul Hobby's open house
this evening and hopes to see you there to discuss Genesis Park and Vitol.
In the event you two do not cross paths there, please let me know and we'll
see what we can do to schedule a meeting before the end of the year.

Regards,
Sherri Sera
Assistant to Jeff Skilling
713.853.5984
713.646.8381 (fax)
sherri.sera@enron.com

Neil Kelley <NKelley@TQCap.com> on 12/01/2000 02:51:21 PM

To:   "Jeff Skilling (E-mail)" <jeff.skilling@enron.com>
cc:

Subject:  Genesis Park

Jeff, I've been meaning to corner you at one of the YPO functions to spend
a
minute discussing a couple of topics.  First and foremost, I wanted to
introduce Genesis Park which is a "new economy" investment company that's
been recently founded here in Houston by Paul Hobby, Fred Lummis, Steve
Gibson, Peter Shaper, Bruce Herzog and myself.  Paul and I were hoping to
have an opportunity to spend 30 minutes with you in the next few weeks to
describe in person what we're all about.  And to be clear, we're not
looking
for Enron money, we are raising money from private individuals.  We've
already met with Jay Fitzgerald and Steve Horn to establish the
Enron/Genesis business relationship.

I also wanted to get your views on Enron's approach to oil trading and
whether the Vitol Group presented an opportunity.  Frankly, I think Vitol
is
an excellent acquisition target although the success they've enjoyed in the
last year or two will make it a bit more difficult.  They have an
unbelievable franchise, but they also have some fundamental weaknesses
which
could be exploited to Enron's benefit.  I'm shooting in the dark here but
hopefully it's worth some discussion.

If you can free some time during this busy holiday period to meet, it would
be greatly appreciated.  Paul and I could come to your office, or possibly
you could come to our "offices" over on Hermann Park.  We're buying 17
acres
on Hermann Park adjacent to the Park Lane Towers which we plan to develop
into a technology park.  For the time being, we are officing in a high tech
shed on the property!

Please let me know.  Thanks/Neil.


For those who follow European developments, some of these slides show how
Enron's settled (not just physical) volumes stack up against other big
European players (their numbers are probably just physical).   mcs
---------------------- Forwarded by Mark Schroeder/LON/ECT on 28/07/2000
16:15 ---------------------------

Dani Palethorpe
28/07/2000 15:47
To: Mark Schroeder/LON/ECT@ECT
cc: Amr Ibrahim/ENRON_DEVELOPMENT@enron_development, Fiona Grant/LON/ECT@ECT

Subject: Re: Powerpoint Presentation

I apologise - I did send the wrong presentation

Here is the correct one

Let me know if there are any further questions

dani

Mark Schroeder
28/07/2000 14:36
To: Dani Palethorpe/LON/ECT@ECT
cc: Amr Ibrahim/ENRON_DEVELOPMENT@enron_development, Fiona Grant/LON/ECT@ECT

Subject: Re: Powerpoint Presentation

I just scrolled through it, and may have missed it.  Which slide shows the
comparision to other energy companies?  thanks  mcs

Dani Palethorpe
28/07/2000 14:26
To: Amr Ibrahim/ENRON_DEVELOPMENT@enron_development
cc: Mark Schroeder/LON/ECT@ECT, Fiona Grant/LON/ECT@ECT

Subject: Powerpoint Presentation

As requested, enclosed is a powerpoint presentation showing  our traded
volumes in the european market , including those  that compare us to rival
energy companies.

Please let me know if you need assistance regarding these slides

dani


---------------------- Forwarded by Phillip M Love/HOU/ECT on 11/13/2000
08:13 AM ---------------------------

Shane.Dobbs@fctg.com on 11/10/2000 08:25:32 AM
To: wwilson@eng.auburn.edu, Tharpbl@eng.auburn.edu, domino@sonet.net,
hamptone@booksamillion.com, jwood@regionsbank.com, jmjaked@mindspring.com,
gwave85@hotmail.com, phillip.m.love@enron.com, poe77@earthlink.net,
stephaniepool@huntersystems.com
cc:
Subject: FW:

?
-----Original Message-----
From: Jourdan_Will
Sent:  Friday, November 10, 2000 8:24 AM
To: BIFP TRADERS
Subject:  FW:

?
-----Original Message-----
From: David Ray  [mailto:dray@montrad.com]
Sent: Friday, November 10, 2000 8:30  AM
To: William Hocutt; Jourdan_Will; Webb Jackson; Tracy Tiberia; Tim  Watkins;
TAYLOR MCELROY; Stuart Phillips; Stanley, Craig ; Stan HEAD Roberts;  Skew
Dawg; Sarah Hollis; Rusty Sexton; Rob Harper; Penn Wilder; Matt Skelton;
Marty Holt; Mark Smith; Lee Cobb; Kip Tullos; Kevin Judice; Ken Lott;
Jeffrey  Hollis; Jeff Maudsley; Jeanie Wahl; Jay Nichols; J2Andyj2@aol.com;
gsatterw@option-one.com; Greg Stanley; G. Alford; Ezell Webb; Emma; Ellen
Roberts; Eddie Pruett; Drew Porter; Dill, Bo; David Perry; Dave Ellis
(Crib);  Dan (Dial) Wrather; Dad; Clint Ray; Chris Garmon; Chad Medder; Brian
Moore;  Brenda Ford; Brandon Wallis; Bradley O Elliott; Bethany Self; B P
Mendheim;  Ashley Whittemore; Arch Lee; Annette Judice; Amanda Ray; Allen,
Trey; A D  Rogers; Adam Bloomston
Subject: Fw:

?
----- Original Message -----
From: John  Brinkley
To: Bobby Cummings (E-mail) ; Charles Brinkley  (E-mail) ; Kelley A. Wilson
(work) (E-mail) ; Melissa Brinkley (E-mail) ; Woody Marks (E-mail)  ; Adam
Walton ;  David Alexander Ray  ; David Nomberg ; David  Watson ; Gary Clarke
Burns, Jr. ; Michael Parks
Sent: Friday, November 10, 2000 8:16 AM
Subject: FW:

?
 - Morons1.gif


ok

 -----Original Message-----
From:  Dasovich, Jeff
Sent: Thursday, May 10, 2001 1:29 PM
To: Brown, Kortney; Tribolet, Michael; Neustaedter, Robert; Steffes, James;
Soo, Jeffrey A.
Subject: Core/Noncore Analysis

Can we have a call tomorrow to discuss status, etc.?  10 AM Houston time work
for folks?

Best,
Jeff


Note: Brian Petty forwarded this to me on 11/17/00 and I thought it would be
of interest.

Joe Hillings

 - COPPSS~1.TXT


Dear Mr. Kaminski,

In the name of all the MSCF students I would like to wish you and your
family a merry christmas and a happy new year. Thank you very much for
taking the time to come here and talk with us. It was greatly appreciated.

Best regards,

Pierre


As we discussed in our meeting last week, I will be initiating a project to
capture all of our confirmations in an "inventory format" as you mentioned.
Our
log captures the major elements of each deal to keep our group organized with
regard to deadlines, etc.

When you have a minute, please elaborate on some of the specifics which
you would like to see. I have an idea, but wanted to receive your input as
well.

Thanks David


fyi,

----- Forwarded by Tana Jones/HOU/ECT on 09/14/2000 04:55 PM -----

	Tana Jones
	09/14/2000 04:04 PM

		 To: Frank L Davis/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT
		 cc: Tom Moran/HOU/ECT@ECT, Veronica Espinoza/Corp/Enron@ENRON, Kim S
Theriot/HOU/ECT@ECT
		 Subject: EOL Financial Power Trading Approvals

Per the request of Stephanie Sever, I am attaching a list responding to her
request to confirm the attached counterparties ability to trade financial
power products online.  Stephanie, the ones I said "OK to open" you will need
to go in and open for financial power (from Legal only).

Call me if you have any questions about specific counterparties.


Celeste,

I would like to ask you for a favor. We would like to have Sevil as an intern
in our group
this summer. She prepares a Ph.D. dissertation  on transmission: a critical
issue to the power
markets everywhere.

I have also a few other students I would like to take in as summer interns. I
shall send you
the resumes in separate messages.

Vince Kaminski

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/11/2000
12:51 PM ---------------------------

sevil yaman <syaman_98@yahoo.com> on 02/10/2000 10:22:28 PM
To: vkamins@enron.com
cc:
Subject: Summer Internship Position

Hi Dr. Kaminski,

As I told you last Monday in Dr. Kao's class I am
looking for a summer internship position in your group
in which I can use my economics background together
with my quantitative skills and knowledge in
electricity markets. Currently, I am a third year
Ph.D. student at the Economics Department of  the
University of Houston. At the end of this semester
I'll be completing my coursework and starting to write
my dissertation which analyzes the access pricing
issue in network industries, especially in electricity
transmission.
I would like to give you a few examples from my
coursework. In addition to basic Statistics I-II and
Econometrics I-II, I have taken "Macroeconomic
Modeling and Forecasting" (Time Series) class in which
I learned RATS. In "Applied Econometrics" class, it
was given a great deal of attention to the case method
learning approach that involved extensive computer
analysis. We were taught SAS. As a term paper I worked
on electricity demand forecasting. This semester I am
taking "Special Topics in Applied Econometrics" course
in which I am being taught Qualitative Dependent
Models, MLE, Panel Data Techniques, and so on, and as
software STATA. Moreover, this semester I am also
taking "Options Theory and Its Applications" class and
auditing Dr. Kao's class. I definitely agree with you
in what you mentioned in your lecture last Monday
about the understanding of the options theory as a
necessity in the energy sector.
Besides, I spent my last summer in the Oil and Gas
unit of the World Bank as a research assistant. This
work experience in which I had great exposure to the
energy market issues and my own research area, which
is regulation of transmission pricing (congestion
pricing), made me believe that the ongoing
restructuring of the electricity sector, especially
the transmission network issue, could be well
understood by working in the industry.
Dr. Kaminski, attached you can find my resume. I would
be glad if you could find a chance to review it and
get back to me soon.

Many thanks,

=====
Sevil Yaman
Department of Economics
University of Houston
Houston, TX 77204-5882
(713) 743-3814 / 3817
__________________________________________________
Do You Yahoo!?
Talk to your friends online with Yahoo! Messenger.
http://im.yahoo.com
 - resume-sevil.doc


from today's LA Times....

Davis is essentially endorsing the CPUC's proposed rate design where
Residential pays less than their share, ie. less than the 3cents.
He is also suggesting that, contrary to the CPUC decision last week, that
some of the increase go to bailing out the IOU's
-- if they sell the transmission.

Davis Acknowledges Need for Rate Hike

                                                           Electricity: In a
statewide TV broadcast, he says the average would be 26.5%. For
                                                        the first time, he
calls situation a "crisis."

                                                        By DAN MORAIN, Times
Staff Writer

SACRAMENTO--After spending months voicing opposition to rate hikes, Gov.
                                                        Gray Davis
acknowledged to a statewide television audience Thursday night the need
                                                        for an electricity
rate increase that would average 26.5%.
                                                             For the first
time calling it an "energy crisis," Davis enumerated steps he has taken,
                                                        then said he has
fought "tooth and nail against raising rates." But citing a need for
                                                        increases, the
Democratic governor called for a tiered system in which people who use
                                                        the most electricity
pay the most--as much as 37% more if they use more than twice
                                                        their minimum
allotment.
                                                             "Here's the
point: The more you use, the more you pay," Davis said. "The more you
                                                        conserve, the more
you save. Conservation is our best short-term weapon against
                                                        blackouts and price
gouging."
                                                             Davis said his
proposed rate plan is sufficient to help reduce the $13-billion debt of
                                                        Southern California
Edison and Pacific Gas & Electric. Although the bulk of the rate
                                                        increase would be
used to help California finance bonds for long-term power
                                                        purchases, about 10%
to 15% would be earmarked for the utilities--so long as they
                                                        agree to sell their
transmission lines to the state, according to the administration.
                                                             The decision to
offer the utilities at least some rate hike monies brought a sharp
                                                        response from
lawmakers. Consumer advocates also are sure to be unhappy.
                                                             "We are not in
this business to bail out these guys," said Senate President Pro Tem
                                                        John Burton (D-San
Francisco).
                                                             Added Harry
Snyder of Consumers Union: "Absolute giveaway . . . He is going to
                                                        pay them off
completely for all their mistakes."
                                                             The governor
took the unusual step of reserving air time on statewide television at a
                                                        time when he is
slipping in polls and surveys show that the public is increasingly
                                                        concerned about the
energy crisis. Gov. Pete Wilson took a similar step during the
                                                        recession in 1992
when he moved to raise taxes and cut government spending.
                                                             The speech took
on greater urgency as the California Independent System
                                                        Operator, the entity
that oversees power distribution, warned Thursday that the state
                                                        will face 34 days of
rotating blackouts if consumers and businesses use the same
                                                        amount of electricity
this summer that they did last year. The blackouts could be
                                                        extensive enough to
darken 5 million homes at once.
                                                             The governor's
speech came hours after the Legislature approved a record $1.1
                                                        billion in energy
conservation measures designed to provide consumers with incentives
                                                        to reduce electricity
use.
                                                             In his speech,
Davis renewed his call to Californians to curtail electricity use by at
                                                        least 10%, even as a
new report was issued warning that the state faces repeated
                                                        summer blackouts
because of a major gap in the supply of power during the coming
                                                        months.
                                                             "We are 34
million strong, and if each of us does our part, we can minimize
                                                        disruptions and get
through the summer," Davis said.
                                                             The governor did
not speak in detail on any issue, including the rate hike. The talk
                                                        lasted a mere five
minutes, delivered in fewer than 800 words.
                                                             Under Davis'
proposal, Southern California Edison residential customers would face
                                                        an average increase
of 2.21 cents per kilowatt hour. San Diego Gas & Electric
                                                        customers would have
a 2.57-cent hike, while Pacific Gas & Electric would have a
                                                        2.44-cent boost.
Business rates would rise slightly more.
                                                             Davis blamed the
rate hikes on rising natural gas prices, a lack of adequate
                                                        generation and the
federal government's refusal to cap wholesale power prices.
                                                             Rates for
customers of the state's two largest utilities rose 9% in January. That boost
                                                        remains in effect.
Legislation approved earlier this year bars further rate increases for
                                                        those who use up to
30% more than their so-called baseline allocation.
                                                             According to
administration estimates, 53% of consumers would experience no rate
                                                        hike beyond the 9%
boost approved in January. A fourth of all households would face
                                                        increases averaging
34.5%.
                                                             Under the
proposal, which requires Public Utilities Commission approval, people
                                                        who use up to 200% of
their baseline allocation would see rates on that portion of their
                                                        electricity use go up
by 9%, plus the 9% already imposed for a total of 18%.
                                                             Electricity
users who consume more than twice their baseline allocation would pay
                                                        between 33% and 37%
more for kilowatts used beyond 200% of their baseline
                                                        allocation.
                                                             Davis' proposed
rate increase is somewhat lower than that proposed by the PUC, in
                                                        part because he had
more information, including the price that the state is paying for
                                                        electricity, his
aides said.
                                                             "My proposal
raises rates fairly, assures us of long-term power, stabilizes the utilities
                                                        and promotes
conservation," Davis said.
                                                             Although there
has been wide news coverage of the crisis, the governor's aides said
                                                        Davis felt a need to
talk directly to Californians to sum up the steps that he has taken to
                                                        solve the problem.
                                                             Perhaps adding
to the urgency, utility customers could start seeing increases in their
                                                        bills as early as
next month. Further raising the stakes for the speech, Davis warned this
                                                        week that supplies
will be so short that there could be blackouts by the end of the
                                                        month, and continue
into May and June.
                                                             "The public is
more aware of what is going on on this issue than any other issue I
                                                        have seen, ever,"
said Democratic political consultant Gale Kaufman. "People have
                                                        gotten three or four
bills that they're unhappy with and they may have been in a
                                                        blackout or two.
There is a concern for the future.
                                                             "By not talking
to the public for a long time," Kaufman said, "and focusing it on one
                                                        speech in one day,
people will dissect this five minutes, much more than if he would
                                                        have had a regular
dialogue."
                                                             In what some
political consultants see as a reflection of Davis' declining political
                                                        strength, a recent
Times poll showed that in Davis' hometown of Los Angeles, only
                                                        14% are more likely
to vote for a candidate endorsed by Davis, while 21% would be
                                                        less likely.
                                                             Several recent
private polls show that a majority of Californians would not vote to
                                                        reelect Davis if he
were on the ballot today, though Davis does not face voters in a
                                                        general election for
19 months, giving him plenty of time to recover.
                                                             "People need to
be reassured that there is a strong sense of direction," said Bill
                                                        Carrick, a Democratic
consultant. "I don't think people are looking for a magic wand.
                                                        But they need a sense
that there is sense of direction."
                                                             Other political
consultants said Davis used television to get his message out because
                                                        newspaper accounts
have raised questions about his handling of the situation. Also,
                                                        voters who get the
bulk of their information from television news generally have less
                                                        knowledge about the
nuances of the crisis.
                                                             "He is not doing
well with the print story," said Republican consultant Wayne C.
                                                        Johnson, "so he has
decided to change venues."
                                                             Johnson, like
many consultants, also said the governor's declining poll numbers likely
                                                        influenced his
decision to make the television appearance, carried on most stations
                                                        across the state
during 6 p.m. news shows.
                                                             "Gray Davis
doesn't do anything that the polls don't dictate," Johnson said. "He is
                                                        doing this because
the polls show his support is in free-fall."
                                                             Until Thursday,
Davis had not characterized the situation as a "crisis," instead calling
                                                        it a "challenge."
That euphemism raised the hackles of many legislators.
                                                             "It's pretty
clear: The public is angry and scared," said state Sen. Don Perata
                                                        (D-Alameda). "They
want a sense that someone is in control, and that there is some
                                                        certitude of where
we're going. We're lacking both."
                                                             The Legislature,
meanwhile, approved two measures touted as ways to cut the
                                                        state's power needs
this summer, when hot temperatures traditionally cause demand to
                                                        surge--a situation
that this year could result in blackouts.
                                                             The bills had
been bogged down in squabbling between the Assembly and Senate.
                                                        The delay raises
questions about whether the conservation incentives will be in place
                                                        long enough to have
an immediate effect.
                                                             The bills, a
$709-million measure by state Sen. Byron Sher (D-Stanford) and a
                                                        $409-million measure
by Assemblywoman Christine Kehoe (D-San Diego), contain a
                                                        dizzying range of
financial "carrots" designed to help people cut power use.
                                                             There is $50
million to help low- and moderate-income consumers replace
                                                        energy-wasting
appliances such as old refrigerators with new, more energy-efficient
                                                        equipment, $60
million to help consumers replace older lighting systems, $7 million to
                                                        teach school children
about energy efficiency, and $50 million for electricity meters for
                                                        businesses.
                                                             The Senate bill
won final passage on a 31-6 vote; the Assembly bill cleared the
                                                        Legislature on a
55-15 vote. However, not everyone supported the concept of
                                                        government subsidies
to reduce power use.
                                                             Meanwhile,
utility watchers issued gloomy reports early Thursday, helping to drag
                                                        down the stocks of
Edison International and PG&E Corp., parent corporations of the
                                                        beleaguered
utilities. Edison closed at $12.64 per share, down 34 cents or 2.6%, while
                                                        PG&E fell to $11.38
per share, down 27 cents or 2.3%, on the New York Stock
                                                        Exchange.
                                                             Standard &
Poor's said it is unlikely that Southern California Edison and Pacific Gas
                                                        & Electric will
regain a sound credit rating soon. The Wall Street debt-rating firm
                                                        lowered the
utilities' credit rating to high-risk junk-bond status in January when they
                                                        began defaulting on
debt.
                                                             Standard &
Poor's cited a lack of action by Davis and state legislators, and said rate
                                                        increases approved by
the PUC will not be sufficient to pay all electricity costs. Banks
                                                        and other creditors
will run out of patience before long unless a settlement is reached to
                                                        help the utilities
pay past debts, Standard & Poor's said.
                                                             The firm
predicted that "the coming weeks are likely to be critical if the utilities
are to
                                                        be made financially
sound companies once again and avoid bankruptcy proceedings."


Just a FYI---Recent developments---there is a slim chance that you may here from Tony Conway or Donnell in the near future trying to be nosey about me and Lonnie...please keep everything on the downlow.  As time progressed, things eventually were discussed regarding me that did not go well for Lonnie.  It is definitely not okay for him to talk to me (because of my past relationships) and I don't want to cause any more confusion for him with Tony.  Itsn't this childish!!!  I'm a grown ass woman, dealing with this shit regarding someone who doesn't mean a damn thing to me.  (I hope I'm not too late!)

I hope we can roll tonight so I can fill you in, I have a 5:30 hair appointment, so I'll be leaving at 4:50 so let me know.

 -----Original Message-----
From: 	Cross, Ora
Sent:	Tuesday, November 06, 2001 3:51 PM
To:	Mims, Patrice L.
Subject:	Communication

Hey Homie,

   I got a funny feeling I will be working late tonight.  (Smile)

  Thanks for your help on yesterday.


Marie,

Obviously, you are not "in the know".  The word on the Enron streets is that
Yao is brokering the peace in Bosnia, and that is why he is too busy to call
his old friends!


I just went through a restructuring of my portfolio with Morgan Stanley.  I
think I am fine for now.  Thank you.

"Swearingen, David" <dswearinge@dlj.com> on 05/16/2001 12:35:35 PM
To: "'Stanley Horton'" <stanley.horton@enron.com>
cc:

Subject:

Mr. Horton,

We appreciate your time a few weeks ago and sincerely hope we were able to
clearly convey our disciplined investment approach to you during our
meeting.    We also hope we were able to help you to re-define the term
"risk".   Using our disciplined approach, we have been able to provide our
clients with consistent returns
and avoid negative returns over the course of the past 10 years.  We credit
the success to developing and implementing a very focused and structured
investment plan.

At this point, we would like to have your permission to put together a
proposal for a portfolio which would be constructed upon the same philosophy
and guidelines utilized by Yale University's multi-billion dollar endowment
fund.    The purpose of the proposal would be to show you how we build our
client portfolios
in an attempt to minimize ( if not eliminate ) negative annual returns while
providing above market returns.

We know you would find the proposal interesting and would give you better
insight into how
high net worth individuals, endowments and wealthy family groups construct
their investment
portfolios.

We look forward to hearing back from you.  Have a great day.

Sincerely,

William L Swearingen II  /  Vice President  David J. Swearingen
Credit  First      Credit  First
Suisse Boston      Suisse Boston


In support of Enron,s continuing efforts to increase its return on invested
capital and direct resources towards our highest return businesses, David
Haug, Chairman and CEO of Enron CALME, Jim Hughes, President and COO of Enron
APACHI, Joe Kishkill, Managing Director of Enron South America, and Frank
Stabler, formerly a Managing Director of Enron CALME, will join Mark Metts in
a corporate wide effort, to help monetize some of Enron,s assets.  David will
help transition the CALME business activities into other parts of Enron while
working with Mark on the asset monetization projects.  David will continue as
an Executive Vice President for Enron Corp and a member of Enron,s Executive
Committee.  Cliff Baxter will oversee this effort.

Consistent with these changes, the CALME group will be divided as follows.
Enron Global LNG and Enron,s Caribbean Basin activities will become part of
the new Enron Global Markets (EGM) group headed by Mike McConnell.  Rick
Bergsieker, President/COO of LNG will continue in that role and in his dual
role as President/COO of Enron Middle East, which will also join EGM. Shawn
Cumberland, President and COO of the Caribbean Basin unit and his executive
team will carry out the transition process for the Caribbean business unit's
people and businesses as part of EGM.  Management of its Colombia and
Venezuela businesses will transfer to Enron South America and its LNG-related
activities to EGM as described above.

The EES related initiatives and people will be transferred to those units.
All of the various international businesses will participate as usual in the
upcoming budget process with their new alignment and continue to meet their
plan targets for 3rd and 4th quarters.

Concurrently, we are consolidating our trading and merchant activities in
Japan and Australia into Enron Europe.  Joe Hirl and Paul Quilkey will report
to Enron Europe,s Office of the Chairman.

We congratulate David Haug and Rebecca McDonald for proposing these
realignments, which we agree, will maximize both the financial and
intellectual capital in Enron.  Over the coming weeks, specific assignments
and reporting relationships will be determined and communicated.


Today's IssueAlert Sponsors:

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questions Sterba was asked at: www.scientech.com

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April 20, 2001

Deal for SCE's Transmission Assets Appears Dead on Arrival

by Will McNamara
Director, Electric Industry Analysis

[News item from Reuters] California Gov. Gray Davis' billion dollar plan to
save utility Southern California Edison (SCE) from bankruptcy is in deep
trouble and could be rejected by legislators. Legislative sources said the
governor was having so much trouble gathering support for his plan that he
could not find anyone to sponsor a bill. One Assembly official called the SCE
bailout plan "the most unpopular piece of legislation in years."

Analysis: Even when this deal was announced as an "agreement in principle"
some 50 days ago, it seemed too far-fetched to be possible. The only party
that clearly seems to benefit from the agreement forged between Gov. Davis
and SCE is the cash-strapped utility. California energy customers appear to
get the short end of an expensive stick, while the state seemingly gains
nothing of value beyond what could amount to a whole new set of
administrative problems. Thus, despite the hype with which Gov. Davis
announced this rescue plan for SCE, California legislators-both Republicans
and Democrats-are saying  "not so fast" and appear to be collectively opposed
to the plan as it currently stands. As it becomes apparent that the
California Legislature will not approve this plan, the general consensus is
that Gov. Davis' offer to SCE is simply a financial bailout for the utility
that provides no benefit to California residents.

For background on the details of Gov. Davis' rescue plan for SCE, please
reference my IssueAlert from 4/11/01. In a nutshell, the state of California
agreed to buy SCE's 12,000-mile transmission grid, which covers much of the
southern half of the state, for $2.76 billion, 2.3 times the system's book
value. SCE would be allowed to use the proceeds to pay off its existing debt,
restoring it to financial stability.  Both the California Legislature and the
CPUC need to approve this deal by Aug. 15 or else the agreement is
terminated.

In the highly politicized climate under which the California energy crisis
has unfolded, it is imperative to understand the agendas that each
stakeholder possesses. For instance, keep in mind that Gov. Davis' political
career has been severely damaged by the state's energy crisis, and the fact
that Pacific Gas & Electric Co., California's largest utility company,
declared bankruptcy has only further tainted the governor's standing. Perhaps
more than any other goal, Davis wants to keep SCE from also filing for
Chapter 11 protection. In addition, Davis believes he will be better able to
solve the crisis if he assumes control over the state's transmission grid
(much like the state has assumed the role of a power purchasing agent).
Normally, a measure supported by the Democratic governor could be easily
approved by California's Democrat-controlled legislature. However, the energy
issue has divided support for Davis even within his own party. Consequently,
the governor needs the support of both Republicans and Democrats in order to
see his rescue plan for SCE pass.

For its part, there was very little reason why SCE should not have agreed to
the governor's terms. From multiple standpoints, the utility gains enormously
from the governor's offer, while at the same time it avoids lengthy and
costly bankruptcy proceedings. Under the agreement, SCE gains a method for
pulling itself out of debt, via rate increases that probably would be
implemented over the next 15 years. Further, its parent company Edison
International gets to hold on to a reported $4.8 billion that SCE has
provided to the corporate operation since 1997. (The exception to this is a
$400 million tax refund that Edison International would give back to SCE).
While Davis referred to his plan as a  "good, balanced deal," some consumer
groups have charged that SCE "has taken the governor to the cleaners."

Meanwhile, California customers clearly lose in the deal because they would
be forced to ultimately pay for the $2.76 billion that the state needs to buy
the transmission assets. The state would purchase the lines with bonds that
would be paid off by transmission fees charged to SCE customers. It is
presently not clear whether or not those fees, which are already part of
monthly bills, would be sufficient; therefore, it is likely that rates would
be increased to support the purchase. In addition, the subtext of the deal is
that customers would ultimately pay to drive down SCE's debt, which was
accumulated as a result of unrestricted wholesale power costs charged by
generators. Consequently, California customers would bear the responsibility
for prices that FERC has at times deemed "unjust and unreasonable."

Ultimately, however, it is the California Legislature and CPUC that will have
the authority to approve the agreement between Gov. Davis and SCE. These two
agencies must ultimately decide if the plan is good or bad, and weigh the
impact for various stakeholders. Presently, the legislature in particular is
finding that there are many questionable aspects about the plan. For
instance, what value would there be in the California government owning only
one portion of the state's interconnected transmission system? PGOCorp. has
walked away from the negotiating table and has expressed little interest in
selling its transmission lines to the state. No agreement with Sempra Energy
(parent of San Diego Gas & Electric) has been reached either. Thus, if the
Gov. Davis / SCE agreement is approved, the state of California would gain
ownership rights to only a portion of the overall transmission system in the
state. Many legislators challenge the value of this, especially when it is
considered that most of the congestion that leads to higher prices within the
state is concentrated along PG&E's portion of the grid. The counter-argument
to this point is that, now that its utility is in bankruptcy proceedings,
PGOmay not have the choice of whether or not to sell its transmission assets
to the state. The bankruptcy judge would make this decision. Thus, some
argue, the state may have a better chance of obtaining PG&E's transmission
assets if it can first complete a deal with SCE.

The second fundamental problem is that causing California legislators to turn
their back on the governor's plan is what some have referred to as an
"obscene bailout" for SCE and its parent company. Some reportedly believe
that Gov. Davis rushed into an overly generous offer for SCE out of anxiety
caused by the breakdown in his communications with PG&E. As noted, the $2.76
billion offer for SCE's assets is about 2.3 times their book value, so many
legislators are having difficulty reconciling what appears to be an
inappropriate price tag (and, once again, a cost that taxpayers and
ratepayers would ultimately have to absorb). Currently, SCE customers pay a
FERC-approved transmission rate based upon a cost-plus formula. If the state
pays 2.3 times book value, it would equate to ratepayers paying two times
over for those same transmission lines. In addition, some legislators,
including former Democratic allies of Gov. Davis, have suggested that SCE
should be forced to enter bankruptcy as Pacific Gas & Electric Co. has done.
Naturally, legislators will approach the issue with their constituents in
mind, knowing that they will be accountable for how they vote on this plan.
Looking at the issue from a customer perspective, one could argue that SCE
declaring bankruptcy would create less financial hardship for California
customers than bailing out the utility and increasing rates. This will be a
major political challenge for California legislators to resolve if the
governor's plan becomes sponsored as a bill.

If I pull out my crystal ball and be so bold as to make projections in this
case, I would predict that there is little chance that Gov. Davis' rescue
plan for SCE will pass in its current form. The energy crisis in California
has become so politicized that legislators will be very reticent to approve
any measure that resembles a financial bailout for one of the utilities,
especially without obtaining something of value for the state in return. It
is Gov. Davis' personal agenda to obtain control over the state's
transmission assets, but I don't see this as being a priority for other
California lawmakers. Thus, the deal will be a tough sell unless some new
development occurs that puts owning SCE's transmission assets in the state's
best interest. Considering the many headaches associated with this business,
and the fact that the state has no expertise in this area, I don't see this
occurring. Consequently, the game is by no means over for SCE and its
potential for bankruptcy does not appear to have decreased to any large
extent. One large California utility is already in bankruptcy court. We could
be only days or weeks away from seeing SCE head in that direction as well.

An archive list of previous IssueAlerts is available at
www.scientech.com

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Copyright 2001. SCIENTECH, Inc. All rights  reserved.


If your schedule permits, please join us at our Holiday Party.  Click on the
attached link to launch your invitation.

 http://invitation.enron.com


No- the conclusion is incorrect. The peakers help to mitigate the risk
created by market positions. Maybe just change the last sentence to read
"Because the peakers offset the contract, the VAR is substantially reduced. "
Rick


EnronOptions Announcement

You can now access a web site that describes EnronOptions ) Your Stock Option
Program.  The web site contains some highlights of the EnronOptions Program
as well as some Frequently Asked Questions (FAQs).

Access EnronOptions ) Your Stock Option Program web site by clicking on
http://hrweb.enron.com or by typing the address into your web browser.

We hope you find the site helpful in addressing your questions about the
EnronOptions Program.  If you have any questions, please contact your H.R.
Representative.

There will be several EnronOptions - Your Stock Option Program presentations
throughout the month of January.  Stay tuned to a computer near you for
details.


Please contact Keith Holst if you should have any questions regarding the new
spread products.  Please let him know when they are completed.  I will be out
of the office until Wednesday.  Thank you very much.

Mike Grigsby


Good Morning-

I've had to take defensive driving for a ticket that I got.   I have a court
date scheduled for Friday morning  Sept. 29th at 8:00 am to submitt  the
defensive driving certificate.  I will be arriving late that morning and I
wanted to let you know 1st.


20k off HPL @ Eastrans effective JULY 26, 2000

Redelivered @

Mobil Beaumont           12200
FCV                                         7800
TOTAL                           20000

Thanks,
Chad Cass


G.

The weekend looks good. I have to do a little homework. Other than that I am
ready to go. Houston just may kick our ass. Your room is available either
night.

GT

> -----Original Message-----
> From: Gerald.Nemec@enron.com [SMTP:Gerald.Nemec@enron.com]
> Sent: Thursday, September 21, 2000 11:51 AM
> To: gtownsend@manorisd.net
> Subject: Football
>
> GT,
>
> I am planning on coming in for the game this weekend.  Not sure if it will
> be Fri. night or Sat. morning.  What does your schedule look like for the
> weekend?
>


Beek,

Rocky asked me to let you know that he is really hoping to be at the party
Friday evening and at the game Saturday afternoon, but he'll have to be home
Saturday night for a wedding.  We'll keep you posted on how it works out, but
so far it's looking like he'll be there for part (perhaps most?) of the fun.

Regards,
Sherri Sera
Assistant to Jeff Skilling
713.853.5984
713.646.8381 (fax)
sherri.sera@enron.com