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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

International
Saudi Arabia Sets Pacts With 9 Oil Firms

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

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

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

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

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

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

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

DAILY DATEBOOK
JON CARROLL
Enron is my spiritual teacher
Jon Carroll

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

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

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

EDITORIAL
WASHINGTON INSIGHT
Gloom today, glut tomorrow
Carolyn Lochhead

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

India: India and Bush Administration: Beyond assumptions

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

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

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

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

Enron's Indian Creditors Seek to Salvage Dabhol Project

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

                             The Fight

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

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

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

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

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


I will be out on Friday, October 26th visiting my daughter at the University of Arizona in Tucson.  I will be leaving early on Thursday October 25th to catch a plane to Tucson.   cvb


Suzanne,

Please schedule this week's conference call for 930am on Wednesday, and
include the usual suspects:  Sheila, Scott, Rose, Mike Barnas and Kent
Shoemaker.

Thanks,

Kay


I don't know anything about any sunglasses. Just kidding, I was wearing them
all weekend.

Chris


Richard,
Life does move on!   What is Malcomb thinking!  Can you imagine intentionally
working for and believing in Jonathan Legg?

Hope all is well.

Mike


Dave

I just realized that you do have "financial desk excluding futures" on report.

Get rid of the other "financial desk" and when you aggregate it exclude the futures trades.

Thanks


Nice job.  Only comment is that the crazies in California now find market
power under every rock and in every pipeline.  I think there's a chance that
someone might assert that 20% share equals market power.  Might want to say
"significant supplier" or something similar.  No big deal, but I thought I'd
flag it for your consideration.

Best,
Jeff


Thanks, I am sending you a new HPL GISB w/ Texaco

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


In addition to World Markets Energy information  <http://esource.enron.com/worldmarket.asp>
 and Country Analysis and Forecasting, <http://esource.enron.com/worldmarket_CountryAnalysis.asp>

eSource now offers free access to World Markets - Regulatory Analysis

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Market Participants:

Just a couple of friendly reminders...

1. The deadline for you to submit your preliminary comments for the CMR
Recommendation will be tomorrow, Friday, July 28, 2000 at 5:00pm.

2. Please remember you will need to use the template we have provided for
you.  You can download the template from the CAISO website at
http://www.caiso.com/clientserv/congestionreform.html   Scroll down to the
Congestion Management Reform Recommendation (DRAFT) Feedback Form,
highlighted in yellow.

Should you have any questions, please feel free to contact either myself or
my assistant Colleen Grant.

Thank you in advance for your timely responses, and your adherence to using
the template we have provided for you.

Byron Woertz
Director, Client Relations


I have nothing to do either but I'm just surfing the web.  I'm not as
dedicated as you are.

Gabriel Monroy
02/06/2001 10:41 AM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: Re: Guess What

At that rate you will pay to get out of Houston right?     No worries, there
is still another game on the 20th and the Season begins Feb 27th (this one is
for points. The other two are Pre-season but still very competitive because
they are organized by the league).  By the 27th, maybe you will already have
finished GMAT.

So, I guess I should not even worry about having told Purvi right?    Well,
if you finish the benchmark early, you know where to go, but don't worry. I
won't be expecting you. Let me know what you hear from Laura (if that is how
you spell her name).  I will talk to the MD after lunch I guess. I'll let you
know what the outcome was.
There is absolutely nothing to do. I am educating myself by reading some
things about Acquisitions.

Gabriel


-----Original Message-----
From: 	Rorschach, Reagan
Sent:	Thursday, May 24, 2001 12:52 PM
To:	Fairley, David
Subject:	RE: FW: Open items for MDEA

From: 	Mann, Kay
Sent:	Thursday, May 24, 2001 12:13 PM
To:	Rorschach, Reagan; Fairley, David; Kroll, Heather
Subject:	Re: FW: Open items for MDEA

1.  Need details re item 1  below.  Please suggest language (band of acceptability, etc) which I will massage and incorporate.
[Rorschach, Reagan]  Heat rates for given output from each machine are incorporated in the bogey model.  We will establish these for contract purposes in the exhibit that specs out all owned assets.  Those are the rates that we will discuss/modify each quarter.
[Fairley, David]  Even though tweaking heat rates in the stack model periodically (at least to be discussed quarterly) is subjective, MDEA would always want to be as accurate as possible because the the inaccuracy causes the incorrect quantity of gas to be nominated, so they underburn or overburn for the day, which would get expensive if the extent of the inaccuracy were very much.  They wear the risk on this.  Being short or long delivered gas presents a variety of ways in which MDEA has to pay for costs to get in balance.  Therefore, any desire that they might have to improperly shift the "bogey" to pay us $2 - 4 less per MWh, costs them more in gas imbalance costs.

6.  Do I have the latest draft of Marketing/Risk policies? [Rorschach, Reagan]   Yes
[Fairley, David]  Sent via e-mail 5-21, but will re-send that e-mail for convenience.

7. Bogey calc only addresses gas.  What if the fuel of choice is fuel oil?  Does the fuel cost and heat rate change?
[Rorschach, Reagan]  heat rates change when switching to fuel oil.  That info is not available from MDEA.  If the opportunity presents itself, we will evaluate on a event specific basis and agree to the actual cost of production. [Fairley, David]    The rule of thumb  that we will use to look at the Stack Model when burning oil vs. gas is about a 5% improvement  in heat rate with oil.  Cost per MMBtu is whatever we plug into the model, whether gas or oil, and prices change daily and intraday anyway, so price changes don't bother us.  Since the oil is coming out of their tank, there is no concern about gas imbalance cost, therefore agonizing very much about heat rate modifications when using oil vs. gas is not really very practical.

Please point me to the defn of profit by cutting and pasting from wherever it is.  I did  a quick search and couldn't find it, but I didn't do a page turn to locate it.
[Fairley, David]  It is in the last exhibit, MDEA EPMI Incentive Fee Calculation, Exhibit XX, attached.  I'm not sure that Section 13 and Exhibit XX work well together.  They were drafted at different times.  I will send any comments on this in the morning.  (The only thing that we have changed in this group of exhibits attached is the revised asset management services description that was e-mailed with the Marketing Strat. and the Trad & Risk Policy).

Thanks,

Kay

From:	Reagan Rorschach/ENRON@enronXgate on 05/24/2001 11:38 AM
To:	Kay Mann/Corp/Enron@Enron
cc:

Subject:	FW: Open items for MDEA

 -----Original Message-----
From: 	Fairley, David
Sent:	Thursday, May 24, 2001 11:15 AM
To:	Rorschach, Reagan
Subject:	RE: Open items for MDEA

 -----Original Message-----
From: 	Mann, Kay
Sent:	Wednesday, May 23, 2001 5:06 PM
To:	Rorschach, Reagan; Kroll, Heather; Fairley, David; May, Tom
Subject:	Open items for MDEA

[Fairley, David]

Here are issues which I'm unclear about, all of which impact the drafting of the agreement:

1. How are we setting the heat rate?  Do we have the GADS (?)?  Is it a daily average, weekly average?  Flat rate? Adjusted? If so, how often?
[Fairley, David]
Each utility is obligated to provide the heat rate information to use in the appropriate Exhibit and the Stack Model.  As conditions change the utilities must update this info.  We are tracking heat rates based on actual fuel usage.  Services and Orig agreed yesterday to add language that requires a quarterly review of heat rate data to determine if the assumptions being used are satisfactiry -- it can never be exact, but it should be accurate within a band of acceptability.  No GADS.  Heat rates will be adjusted in the model as often as necessary to account for significant changes such as hotter ambient temps..

2. Are we comfortable that there are no permit restrictions?
[Fairley, David]
Yes, their units are too small.  We have discussed this with the customer, and with our internal air permit guys.
[Rorschach, Reagan]  They have Title V permits, and they are faxing them to us today.  They have no run hour limitations on gas, however, they are limited on oil.  Will need to get that summary to Kay as soon as possible.

3. We have determined that we won't deal with fuel oil, right?
[Fairley, David]
We won't buy and sell fuel oil.  We may dispatch on oil at start-up, or we may switch to oil and sell the gas if profitable, which constitutes a Product transaction with the resulting profit split.
[Rorschach, Reagan]  We need to state that MDEA and Cities are responsible for maintaining fuel oil supplies.

4. We aren't making money on gas, right?
[Fairley, David]
We make money on gas two ways.  The first is outside the contract, and is basicly any internal profit on re-sale of gas to the Cities.  The second way we can make money on gas is when the gas trade is in the form of a Product trade, and those procedures apply.

5. Do we have a defn of costs that we like yet, and if so, how does it fit in to the picture?
[Fairley, David]
Yes, will send separately.

6. Is there an up-to-date set of exhibits?
[Fairley, David]
The Marketing Strategy, the Trading and Risk Policy, and the Description of Asset Management have been upated.  The other Exhibits have not been modified.  The Marketing Strategy and Trading & Risk Policy have been discussed at length with MDEA (MDEA commercial, not legal), and their comments/questions incorporated.

7. It would help if theh commercial part of the team could send me the following, in words and/or formulae:

The defn and method of establishing the bogey (target production cost) formula can be an exhibit, which would be great for the commercial team to work on.
[Fairley, David]
Thought we had this covered in the definitions and obligations of the parties.  Will look at it again.  Conceptually, MDEA, Services Group, and Orig are in full agreement, so we need to make sure that the contract language is clear enough.
[Rorschach, Reagan]  See attached exhibit detailing the calc with an example.

 Are we determined how we should deal with imbalances (part of cost of power)?
[Fairley, David]
There are three considerations on this: (1) who wears imbalance exposure?, (2) who manages imbalances (hourly type activity), and (3) who pays for imbalances?  Imbalances are billed by Entergy directly to MDEA under their Network Services Agreement.  EPMI's hourly desk manages the load/resource items hourly, but MDEA has the exposure (physical and price) to imbalances.  Weather/load changes, and fluctuations in supply create hourly imbalances (they happen, they are uncontrollable, and we fix them) which EPMI's hourly desk manages as part of the imbalance service described in the definitions and obligations of the parties.  A different section in the contract states that MDEA wears the exposure.

 How are we setting the bogey?    Formula?   [Fairley, David]  The bogey is set when the load projection and stack models are run each day.  Both parties participate by providing certain necessary info and discussing results and planning the day's activities.
[Rorschach, Reagan]  Records of bogey decisions will be archieved

Subject to audit?  [Fairley, David]    Yes, but they would be auditing something that is jointly derived each day.  Frankly, they would like to have less involvement; ie, they trust us to do it all, but we are requiring them to participate and buy in every day.

Two bogeys or one (gas and oil)?
[Fairley, David]
One bogey for power.  Gas is an input for determining the bogey.
[Rorschach, Reagan]  Bogey set day-ahead.

What is defn of profit?  I think I have the general idea, but a sentence or two would be helpful as a reality check.
[Fairley, David]
This is in the pricing calc's.  Should we have a definition?

What costs are included on the buy and sell side [Fairley, David]  see cost definition being provided separately.

Re stack model: a sentence or two describing what it is and how it is used. [Fairley, David]    See definition in my mark-up's to the main agreement.

Updated exhibit on facilities, contracted resources, operating limits. [Fairley, David]   Services and Orig are reviewing these, but other than what was mentioned above, probably no changes unless you see a specific area that is a problem.

What information does MDEA need for us to provide in order to split costs/profits?  Are we clear that Cities buy gas, MDEA buys/sells power?
[Rorschach, Reagan]  I will be getting exhibits of the reporting both daily and monthly.  We need to make sure to limit our info providing responsibilities to those reports.

It would be great if I could get one set of answers to these questions/issues, which has commercial buy in all around.

Thanks,

Kay << File: Bogey Calculation Method.doc >>


(See attached file: hpl0616.xls)

 - hpl0616.xls


---------------------- Forwarded by Angie Zeman/Corp/Enron on 02/08/2001
11:35 AM ---------------------------

Brent_Dornier@enron.net on 02/08/2001 05:01:56 AM
To: Angie.Zeman@enron.com
cc:
Subject: Friday funnies... one day early

(See attached file: computer.doc)

 - computer.doc


April 25 would be the only day that may work for Jeff.  Please advise.

Thanks,
Joannie

"Gail Glidewell" <GailG@morgangroup.com> on 03/29/2001 03:56:59 PM
To: <abreco@ix.netcom.com>, <billymont@aol.com>, <jeff.skilling@enron.com>,
<robert_duncan@transwestern.net>
cc: "Michael S. Morgan" <MichaelM@morgangroup.com>

Subject: Lunch

Alfredo, Robert, Bill, & Jeff:

Mike Morgan would like to have lunch with all of you to catch up.  Some
dates open for him are as follows:

  Any day the week of April 16th
  April 25, 26
  May 1st through May 3rd
  May 7th, 9th, or 10th

Please advise which of these dates might work for you.

Gail Glidewell
Assistant to Michael Morgan


Attached, please find a press release from Governor Davis announcing the
signing of SBX 6 which creates a PPA.

http://www.governor.ca.gov/state/govsite/gov_htmldisplay.jsp?BV_SessionID=@@@@
0298965258.0990051291@@@@&BV_EngineID=eallccemeikbemfcfkmchcng.0&sCatTitle=Pre
ss+Release&sFilePath=/govsite/press_release/2001_05/20010516_L01015_GGD_signs_
SB6X_Power_Authority_bill.html&sTitle=GOVERNOR+SIGNS+CALIFORNIA+%0aPOWER+AUTHO
RITY+BILL%0a&iOID=14801


I definitely think we should let customers know as needed basis.  Someone should certainly
	talk to ENA.  Terry, please work with Jean on this.

	John and Terry, are there other customers who download our rates?  Thanks. Lynn

 -----Original Message-----
From: 	Adams, Jean
Sent:	Monday, August 27, 2001 4:43 PM
To:	Kowalke, Terry; Buchanan, John; Blair, Lynn
Subject:	Rates Effective August 1, 2001

When the descrepancy between our rates posted on the website and entered in our system was discovered, did we notify any of our customers that this had occurred.  ENA loads our rates into their system.  They should probably know if they need to re-load them for September 1.

What do you think?

Jean


1-bedroom apt for rent from end of this month until 2/18/2001.
Address: 2677 Creekside Dr, San Leandro ,CA 94578
Rent: $900/month + electricity. (I pay $1185/month + electricity)
Transportation: 5 minutes walk to Bayfair Bart station. Easy access to 880,
238, 92
Environment: inside Lakeside Village (a huge village complex),  Quite and
rural-style. Convenient shopping.
Spacious (700 square feet), very clean, new carpet, w/ spatio, ceiling fan,
dish washer
2nd-floor, sunny(south-faced), free gym/swimming pool
one free covered parking lot
You can choose to live there after 2/18/2001, but have to negotiate a new
rent with the management office.
If interested, please send email to tao@haas.berkeley.edu,or call
415-218-6690 (cell) or 510-483-3822 (home) for Daniel.


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take me off your mailing list

JobOpps@idrc.org on 09/05/2000 01:57:01 PM
To: jarnold@ei.enron.com
cc:
Subject: Job Opportunities from IDRC

IDRC Job Opportunity Posting

DATE RECEIVED: September 05, 2000

POSITION: Real Estate Manager
COMPANY: Sony Corporation of America
LOCATION: New York City NY, USA

For complete details go to:
http://site.conway.com/jobopps/jobdetail.cfm?ID=82
To see all job postings go to: http://site.conway.com/jobopps/jobresult.cfm


Are we good to go?

I forgot to show  my husband your pictures.  If it is ok with you, I'll bring
them back on Monday.

Have a great weekend,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 09/29/2000 04:17
PM ---------------------------

Fred Mitro@ECT
09/29/2000 04:11 PM
To: Herman Manis/Corp/Enron@ENRON, Kay Mann/Corp/Enron@Enron
cc: Rusty Stevens/Corp/Enron@ENRON

Subject: Ledford agreement - accounting issue

Herman:

I talked with Karen Way at Piper Marbury Rudnick & Wolfe (our chicago
counsel) regarding the contingencies section (s.18) of the Ledford land
option agreement.  She confirmed for me that none of the conditions in
Section 18 would allow us to recover either the option consideration ($5000)
or the purchase price ($265,000).  Further, the language at the end of
Section 20 specifically states that the option consideration is true option
consideration and is deemed earned by the Optionors upon receipt.

Based upon our discussions this afternoon, I will let Kay know that you are
comfortable with the agreement being executed in its current form.

Thanks,
Fred


Ben:
I talked with Thomas Suffield and he wants Miguel Vasquez to run the numbers
on the Florida model., since they have been running numbers on the Plano
model for a little while now.  I walked Miguel through what I had done and
how they should look at running the model, based on what Thomas found out and
what you have said in the past.  I also gave them the numbers that the desk
has given based on the simple cycle case (5 year number) and combine-cycle
case (5 year number).  From this they have modeled and graphed these
different scenarios.  I also worked on getting a bid and ask from the desk,
but you may need to talk to Berney because they are not giving out the ask at
this time.
Hope this helps and please give me a call if you have any questions. Thanks
Ben
3-7998


For the week  October 9-13th:

Transwestern weekly average deliveries to California were 1,025 MMcf/d (94%)
while east deliveries averaged 265 MMcf/d.  San Juan lateral throughput
averaged 723 MMcf/d while receipts from Rio Puerco averaged 50 MMcf/d.

El Paso average deliveries to California were 2,200 MMcf/d (75%) :

- PG&ETop (capacity 1,140 MMcf/d) deliveries averaged 518 MMcf/d (45%)
- SoCalEhr (capacity 1,250 MMcf/d) deliveries averaged 1,153 MMcf/d (92%)
- SoCalTop (capacity 541 MMcf/d) deliveries averaged 529 MMcf/d (98%)

Other pipeline throughput:

- PGT ( capacity 1,937 MMcf/d) throughput to California averaged 1,737 MMc/d
(91%)
-  Kern River (capacity 700) throughput to California averaged 425 MMcf/d
(60%)

The cash PG&E/Topock - SoCal/Needles spread shrank consistently from a Monday
.48 difference to a Friday difference of .11

Friday Enron Online Basis numbers:

  Nov  Nov 00-March '01 April-Oct '01
Perm-CA   .32    .31      .50
SJ - CA    .66    .49      .72
SJ-Waha   .37    .21      .29
Perm-Waha   .03    .03      .07


The ISO Settlements group has determined that based on the available
information the "Market" payment amount by Enron should be $8,000,000 due on
May 31, 2001 by 10am.   This is based on the adjusted meter data submitted
by Enron between 3/14/01-3/24/01 and final settlement statements that have
been generated only to March 18th, which has updated the preliminary
statements to this date.  Along with this, we have calculated that the GMC
payment should be $460,532.
Please note that any true-ups to the exact settlement statement charges will
be reflected in the final settlement statements for the dates in which we
had to trend (3/18 through 3/24).  Adjusted Payment / Charges will be made
within the normal market mechanisms.

Keoni Almeida
California Independent System Operator
phone: 916/608-7053
pager:  916/814-7352
alpha page:  9169812000.1151268@pagenet.net
e-mail:  <mailto:kalmeida@caiso.com>


Good Morning,

Just a reminder to get your AGA estimates in by noon. (11:00 CST).

Last Year      -103
Last Week      -190

Thank You,
George Ellis
BNP PARIBAS Commodity Futures, Inc.

_____________________________________________________________________________________________________________________________________

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Toute utilisation de ce message non conforme a sa destination, toute diffusion ou toute publication, totale ou partielle, est interdite, sauf autorisation expresse.

L'internet ne permettant pas d'assurer l'integrite de ce message, BNP PARIBAS (et ses filiales) decline(nt) toute responsabilite au titre de ce message, dans l'hypothese ou il aurait ete modifie.
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The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  ? 2001 Carr Futures

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

Distillate     http://www.carrfut.com/research/Energy1/hoil21.pdf
Unleaded     http://www.carrfut.com/research/Energy1/unlded21.pdf


[IMAGE]
 Attention Fantasy Members! It's time to get an early start on that New Year's resolution. MVP.com is offering FREE Standard Shipping in our Fitness Shop until 1/17/02. Click here to see what we have to offer.   Save $.05 a gallon on the gas that keeps your car's engine clean. Click here  to apply online.  Win  a VIP Vegas Vacation! OR Win  $600 CASH!   Brought to you by   Sponsorship Bar You are receiving these e-reports because you have signed up for CBS SportsLine.com Fantasy Football.  To customize, reschedule, or turn off these reports please  click here    NFL Reports, Player Updates  [IMAGE]Latest NFL Player News  Jerome Bettis , RB PIT - El-Gato Updated 12/30/01 Bettis has been declared inactive for Sunday's game against the Bengals. Chris Fuamatu-Ma'afala will start in his place.   Jay Fiedler , QB MIA - Kar Bombs Updated 12/29/01 Fiedler has been added to Miami's injury report with a sore throwing elbow. He is listed as probable for Sunday's game against Atlanta, and is expected to start.  If you're desperate for a quarterback, Fiedler's matchup vs. the Falcons is a good one.   Steve McNair , QB TEN - Beegs Boys Updated 12/29/01 McNair was excused from practice on Friday due to a family illness. He is listed as questionable for Sunday's game against Cleveland, but he's expected to start.   Larry Foster , WR DET - Free Agent Updated 12/29/01 Foster (thigh) is expected to play in Sunday's game against Chicago. However, he is far too risky to start at this point in the Fantasy season.   Bert Emanuel , WR DET - Free Agent Updated 12/29/01 Emanuel (knee) is expected to play on Sunday against Chicago. However, he's too risky to start at this point in the Fantasy Football season.   Muhsin Muhammad , WR CAR - G money Updated 12/29/01 Muhammad (turf toe) will not play this week, and may miss the rest of the season. Isaac Byrd will likely start in his place again.    Seahawks  , DT SEA - G money Updated 12/29/01 CB Shawn Springs, who was suspended for the past four games, will not start on Sunday against San Diego. He may play a reserve role, however, but his playing time will likely be limited.   Todd Bouman , QB MIN - Free Agent Updated 12/29/01 Bouman will miss Sunday's game against Green Bay due to a thumb injury. Spergon Wynn will start in his place.   Spergon Wynn , QB MIN - Free Agent Updated 12/29/01 Wynn will start Sunday's game against the Green Bay Packers in place of the injured Todd Bouman. Wynn, who played in most of last week's loss to Jacksonville, is far too inexperienced to start this deep into the Fantasy season.   Drew Bledsoe , QB NE - El-Gato Updated 12/29/01 According to published reports, the Chicago Bears are interested in acquiring Bledsoe. With Tom Brady seemingly entrenched as New England's quarterback, it seems that Bledsoe has become expendable to the Patriots. The move would certainly improve the Bears' passing game, but no deals would likely be made until sometime in the spring.   Martin Gramatica , K TB - G money Updated 12/28/01 Gramatica has still not been ruled out for Saturday's game, although the Buccaneers have signed veteran kicker Doug Brien as insurance. Even if Gramatica can play, he will be a very risky Fantasy starter.   Warrick Dunn , RB TB - Perrito-style Updated 12/28/01 Dunn's status is day to day with a toe injury. He is expected to play this week, but Mile Alstott has been the most productive back on the team in recent weeks.   Michael Westbrook , WR WAS - El-Gato Updated 12/28/01 Westbrook's status is day to day with a knee injury. He is expected to play this week.   MarTay Jenkins , WR ARI - Free Agent Updated 12/28/01 Jenkins may miss his second consecutive game with an ankle injury this week. Arnold Jackson would replace him as Arizona's third receiver.  Brian Finneran , WR ATL - Free Agent Updated 12/28/01 Finneran is listed as probable with a knee injury. He is expected to play this week.   Tyrone Davis , TE GB - Free Agent Updated 12/28/01 Davis has been elevated to the No. 2 tight end slot over rookie David Martin. He will see a considerable amount of playing time now that he is healthy, because Green Bay employs many double tight end sets in the red zone.   Oronde Gadsden , WR MIA - Starboy Updated 12/28/01 Gadsden has been practicing this week and may be able to play. But his hamstring injury may limit his productivity.   Steve McNair , QB TEN - Beegs Boys Updated 12/28/01 McNair was limited in practice on Thursday. He is still expected to play this week, but he is a risky Fantasy starter because he will be less than 100 percent healthy.   Jimmy Smith , WR JAC - R-Diddy Updated 12/28/01 Smith (flu) has missed practice time this week. He is still expected to play.   Joe Horn , WR NO - Hurricanes Updated 12/28/01 Horn suffered a minor shoulder injury in practice on Thursday. He is expected to start this week.   Aaron Shea , TE CLE - Free Agent Updated 12/28/01 Shea (shoulder) has been placed on injured reserve. O.J. Santiago will continue to be Cleveland's No. 1 tight end while he is out.   Jason Brookins , RB BAL - Tacos Updated 12/28/01 Brookins has returned to practice and is listed as probable. But he still may not see any game action until Week 17.  Emmitt Smith , RB DAL - Hurricanes Updated 12/28/01 Micahel Wiley may miss this week's game with a hip injury. Smith is expected to appear on third downs this week as well as assuming his normal workload.   James Thrash , WR PHI - Perrito-style Updated 12/28/01 Thrash (ankle) returned to practice on Thursday. he is expected to play this week.   Wesley Walls , TE CAR - God Updated 12/28/01 Walls missed practice on Thursday with a knee injury. He may be a gametime decision this week.   Maurice Smith , RB ATL - Oper Error Updated 12/28/01 A banged-up Smith Toe/knee)  will continue to start for the Falcons. But Dan Reeves has indicated Rodney Thomas will continue to get some work at halfback.   Bob Christian , RB ATL - Free Agent Updated 12/28/01 Christian is day to day with a calf injury. He is expected to play this week.   Stephen Davis , RB WAS - Oper Error Updated 12/28/01 Davis (knee) has returned to practice. He is expected to start this week.   Todd Bouman , QB MIN - Free Agent Updated 12/28/01 Bouman took a few snaps Thursday but didn't appear to meet coach Dennis Green's "full strength" criteria for starting against Green Bay.   Spergon Wynn is likely to start Sunday, though coaches didn't discuss the issue after Thursday's practice. Bouman didn't participate in the team's morning walk-through, when players work on plays without fully suiting up. And during the portion of the regular practice that reporters were allowed to watch, Wynn took more snaps than Bouman. A trainer said Wynn continued to take more snaps later in the closed portion of practice.    Jerome Bettis , RB PIT - El-Gato Updated 12/28/01 Bettis, sidelined by a groin injury, returned to the practice field Thursday for the first time in a month. "Still questionable," coach Bill Cowher said. "He did more today. We'll see how he feels (Friday) and go from there. We'll take it day to day."   More Updates  Schedule, Breakdown  [IMAGE][IMAGE]  Copyright 2001 Commissioner.COM Inc and SportsLine.com Inc. Your site can be reached from http://fantasy.sportsline.com   FB10SP


Engage Energy America LLC - Buy only until demonstrate have power marketer's
licence.
Engage Energy Canada LP - Decline physical power unless can demonstrate
physical business activity in US.
Otherwise Ditto Credit.

	Tana Jones@ECT
	05/30/2001 05:23 PM

		 To: Alan Aronowitz/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Marcus
Nettelton/NA/Enron@ENRON, Harry M Collins/HOU/ECT@ECT, David
Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Robbi Rossi/Enron
Communications@Enron Communications, John Viverito/Corp/Enron@Enron, Jane
McBride/AP/Enron@Enron, Andrea Calo/SA/Enron@Enron, Peter Keohane/CAL/ECT@ECT
		 cc:
		 Subject: EOL Approvals: 05-30-01

----- Forwarded by Tana Jones/HOU/ECT on 05/30/2001 05:23 PM -----

	Tom Moran/ENRON@enronXgate
	05/30/2001 03:29 PM

		 To: Karen Lambert/ENRON@enronXgate, Tana Jones/HOU/ECT@ECT, Samuel
Schott/ENRON@enronXgate, Brant Reves/ENRON@enronXgate, Debbie R
Brackett/ENRON@enronXgate, Cynthia Clark/ENRON@enronXgate, Enron Europe
Global CounterParty/LON/ECT@ECT, Stephanie Sever/ENRON@enronXgate, Tom
Moran/ENRON@enronXgate, Claudia Clark/ENRON@enronXgate, William S
Bradford/ENRON@enronXgate, Lisa Lees/ENRON@enronXgate, Juana
Fayett/ENRON@enronXgate, Jana Morse/Corp/Enron@Enron, Trang
Le/ENRON@enronXgate, Paul Maley/LON/ECT@ECT, Sonya Clarke/LON/ECT@ECT, Tim
Davies/LON/ECT@ECT, Karen O'Day/ENRON@enronXgate, Tanya
Rohauer/ENRON@enronXgate, Kelly Lombardi/ENRON@enronXgate, Brian
Lindsay/Enron Communications@Enron Communications, EOL Call Center@ECT, Bill
D Hare/ENRON@enronXgate, Amy Heffernan/Enron Communications@Enron
Communications, Molly LaFuze/Enron Communications@Enron Communications, Danny
Clark/Enron Communications@Enron Communications, Stephanie
Panus/NA/Enron@Enron, Teresa Mandola/ENRON@enronXgate, Bill
Kyle/ENRON@enronXgate, Amber Ebow/ENRON@enronXgate, Thu Pham
Arnold/ENRON@enronXgate, Tandra Coleman/ENRON@enronXgate, Lesli
Campbell/ENRON@enronXgate, Wendi Lebrocq/ENRON@enronXgate, Mark
Taylor/HOU/ECT@ECT
		 cc:
		 Subject: EOL Approvals: 05-30-01

Please see attached

Regards,
Tom Moran
713-853-3017


Attached are the EGF-Legal dealflow sheets for Q4--in progress and closed
transactions.  Please feel free to contact me or any of the EGF attorneys or
assistants with any questions and/or comments you may have.

Jordan
---------------------- Forwarded by Jordan Mintz/HOU/ECT on 11/22/2000 02:39
PM ---------------------------

Darlene C Forsyth
11/22/2000 02:13 PM
To: Jordan Mintz/HOU/ECT@ECT
cc:
Subject: Dealflow - 11/22/00


per disc with steve on 3/22


is this still an issue?


+ Finance Minister Yashwant Sinha outlined a program to stimulate growth
during the current fiscal year.
+ The World Bank is likely to increase funding in India to over $3 billion.
+ NIIT Ltd. stated that it has allocated $100 million for its acquisition
program, primarily focused on US targets.

USIBC Daily News
October 17, 2000

Agro/Patents/Pharma
October 17: The government has assured farmers in the northern state of
Haryana that it will consider giving them a relief package for damaged rice
similar to the one announced earlier for the farmers of Punjab. Business
Standard?
<http://www.business-standard.com/today/markets2.asp?Menu=1?
http://www.hindustantimes.com

Broadcasting/Entertainment
October 17: The Information and Broadcasting Ministry is evaluating two
alternative models for the introduction of direct-to-home television
broadcasting in the country: free-for-all and restricted competition.? The
Hindustan Times? (Print edition only)

Communications
October 17:The Indian government has framed detailed rules and appointed an
official structure under its e-commerce law to enable digital signatures and
transactions from Wednesday, officials said. Reuters
http://www.siliconindia.com/shownewsdata.asp?newsno=5525&newscat=Technology

October 17: Telecom Venture Group (TVG) of Hong Kong and its associates are
planning to sell their 11% equity stake in BPL Communications, the holding
company for the BPL group cellular phone companies, BPL Mobile and BPL
Cellular. Business Standard
http://www.business-standard.com/today/corp9.asp?Menu=2

October 17: Hughes Tele.com India Ltd (HTIL), a unit of Hughes Network
Systems, became the first private telecommunications company to complete
initial public offering (IPO), becoming the first private telecommunication
company in India to go public. The total equity raised approximately $193
million. siliconindia
http://www.siliconindia.com/shownewsdata.asp?newsno=5515&newscat=Technology

Economic/General News
October 17: Finance Minister Yashwant Sinha has outlined a program to ensure
7% growth during the current fiscal year. This includes pushing through
pipeline power sector projects, expediting the prime minister's north-south
national highway program and imparting momentum to the economic reforms by
taking up important legislations during the forthcoming winter session of
Parliament.?? The Financial Express
http://www.expressindia.com/fe/daily/20001017/fec17064.html

Energy
October 17: BP Amoco will join a consortium led by Indian Oil to promote a
venture that will import liquefied natural gas in Kakinada, in the southern
state of Andhra Pradesh.? The Financial Express.? (Print edition only)

October 17: The Indian government will continue to own 51% of the equity in
Indian Oil Corporation, Oil and Natural Gas Commission and Gas Authority of
India Ltd.? The Financial Express.? Rediff
<http://www.rediff.com/money/2000/oct/16rupee.htm>

Financial: Trade & Investment
October 17: The Ministry of Finance has cleared the Finance Companies
Regulation Bill. The proposed legislation, which will bring all non-banking
finance companies under a separate act, has been referred to the Cabinet
Committee on Economic Affairs.? The Economic Times? (Print edition only)

October 17: Industry chambers have urged SEBI to review provisions in the
takeover code to discourage hostile takeovers. They have independently urged
that the regulations on creeping acquisitions be relaxed further so that
promoters can counter takeover bids effectively.? The Times Of India
http://www.timesofindia.com/today/17busi2.htm

October 17: The World Bank is likely to increase its funding in India to over
$3 billion during the current financial year, significantly higher than the
$1.8 billion sanctioned during the 1999-2000 fiscal year. Business Standard
? http://www.business-standard.com/today/economy1.asp?Menu=3

Information Technology
October 17: NIIT Ltd. stated that it has allocated $100 million for its
acquisition program.? NIIT is primarily looking at acquisitions in the US,
which it has identified as a key market. The Hindu Business Line (Print
edition only)

October 17: Convergent Communications India Pvt.Ltd. has entered into a
strategic alliance with U.S.-based Smart Modular Technologies for marketing
its memory modules, memory cards, and communication products. The Financial
Express (Print edition only)

Insurance and Finance
October 17: The Securities & Exchange Board of India made it compulsory for
asset management companies to disclose their balance sheets every year.
Business Standard http://www.business-standard.com/today/markets2.asp?Menu=1

Political/International
October 17: A senior BJP leader stated that Mr. Advani is will be the choice
for the job of Prime Minister, if the need arises," The Hindu
http://www.hinduonline.com/today/stories/01170004.htm

Sanctions
October 16: Republican presidential candidate George Bush has said that if
elected he would not press India to sign the CTBT and favored immediate
lifting of all US sanctions against New Delhi. The Times of India
http://www.timesofindia.com/today/16worl3.htm

Transportation/Infrastructure
October 17: Surface Transport Minister Rajnath Singh has announced that the
golden quadrilateral project is on schedule. He said that the government has
begun implementing construction on 911 km of road and is preparing
implementation for the remaining 4,397 km of roads.? The Economic Times
http://www.economictimes.com/today/17infr06.htm

==============================================================================
=
The USIBC Daily News is a free service of the U.S.-India Business Council to
USIBC Members and affiliates.
USIBC provides Internet links to news stories for informational purposes
only, and makes no representation
of the accuracy of information posted on other organizations' websites.? To
add or remove your name from this
list, or with questions or comments, please contact USIBC via e-mail at
usibc@uschamber.com.

U.S.-India Business Council
Website: http://www.usibc.com

1615 H Street NW
Washington DC 20062-2000
Phone 202 463 5492
Fax 202 463 3173

West Coast
477 Ninth Avenue, Suite 107
San Mateo, CA 94402
Phone 650 685 8790 xt. 16
Fax 650 343 2848


I am told that due to the lack of settlement the Judge will recommend a
refund based on a proxy MCP wherein there will be a daily or hourly heat rate
multiplied by a DAILY gas price + O&M.  Emission costs would be justfied on a
generator-specific basis.

The refund would only look at transactions 2 Oct. 00 - 19 June 01.  Note that
refund orders have already come out so presumably this recommendation would
lead to a modification of  those existing orders.

The modifications proposed to the June 19 order affect the refund caculation
only; this does not change anything to the current mitigation rules.

To reiterate: the judges recommendation is just that and FERC has not yet
ruled fromally.

More news to come.

Alan Comnes

US FERC-Ordered Calif Power Talks End Without Agreement

07/09/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- Federally mediated negotiations between the state of
California and power providers ended Monday without an agreement settling the
state's demand for refunds for alleged overcharges.

Throughout the fast track 15-day settlement conference California remained
steadfast in its demand for $8.9 billion in refunds. But power providers
offered a total of $716.1 million, according to the federal mediator
overseeing the talks.

U.S. Federal Energy Regulatory Commission Chief Administrative Law Judge
Curtis Wagner said at the close of talks Monday that he will recommend that
the commission use its June 19 price-mitigation order to retroactively
determine refunds due dating back to Oct. 2, 2000. Such an approach is
expected to result in a total refund far less than the nearly $9 billion
sought by the state.

The FERC ordered settlement conference "set the balls rolling," Wagner said.
"In 15 days you can't work miracles," he said of the unresolved negotiations.

Wagner said he would recommend that FERC order a fast-track hearing of 60
days or less to address the disputed issues unresolved by the talks. He also
said he would recommend alterations in the June 19 orders pricing methodology
to address "problems" involving power plant heat rates, natural gas pricing
and the cost of emissions permits.

Of the total $716 million in refund offers cited by Wagner, the so-called Big
5 Power Generators in California had offered $510 million. The remainder
included $125 million offered by BC Hydro's Powerex, $49.6 million by a group
of 15 power marketers, $16.5 million by six California municipal utilities
and $25 million offered by "load serving entities" outside California.

"Many of the offers of settlement could with time result in an agreement,"
Wagner said.

Wagner also noted that California came "close to settlement" with Calpine
Corp. (CPN) during the negotiations. Calpine Vice President Joe Roman told
reporters that the agreement with California was "close to gelling."

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


Thanks Brian.  I'd delete ", oil and gas pipeline" and replace it with
"utility" at the end of line 3 to make it a bit broader.  Also, I've run this
by Lou and Dot for their input.  If they are OK, pls post it and email the
final back to me.   Thanks.  df

Brian Schaffer
04/04/2001 04:19 PM
To: Laura Kinningham/OTS/Enron@Enron
cc: Drew Fossum/ET&S/Enron@ENRON

Subject: AGC Job Posting

Laura:

 Here's an updated version of the posting based upon Drew's comments.

Drew:

 Feel free to take one more crack at it if necessary.  Otherwise, we'll have
it up on various sites.  Laura and I will scan resumes received and bring to
your attention any viable candidates.

Brian

----------------------------------

Assistant General Counsel

Enron Transportation Services is seeking a Commercial/Transactional Attorney
with a minimum of 7-10 years of transaction-based and regulatory experience
at a major law firm or corporation.  Candidate must have significant
experience in drafting, negotiating, and closing complex commercial
agreements in a regulated, oil and gas pipeline environment.  This position
requires close interaction with clients and external counsel, strategic
business development skills, solid knowledge of federal regulatory
requirements, risk management and assessment experience, and strong project
finance exposure.   Strong academic credentials, excellent analytical,
organizational and written skills required.


Attached are the final blacklines for the seasonal and daily FX products.
Also, we can discuss Justin's latest description.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com