must be for real
---------------------- Forwarded by Kay Mann/Corp/Enron on 02/15/2001 07:06
AM ---------------------------

Janette Elbertson@ECT
02/14/2001 06:03 PM
To: Alan Aronowitz/HOU/ECT@ECT, Roger Balog/HOU/ECT@ECT, Peggy
Banczak/HOU/ECT@ECT, Sandi M Braband/HOU/ECT@ECT, Robert
Bruce/NA/Enron@Enron, Teresa G Bushman/HOU/ECT@ECT, Bob Carter/HOU/ECT@ECT,
Michelle Cash/HOU/ECT@ECT, Barton Clark/HOU/ECT@ECT, Harry M
Collins/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Nancy
Corbet/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ned E
Crady/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eddy Daniels/NA/Enron@Enron,
Angela Davis/NA/Enron@Enron, Peter del Vecchio/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Andrew Edison/NA/Enron@Enron, Shawna Flynn/HOU/ECT@ECT,
Chris Gaffney/TOR/ECT@ECT, Robert H George/NA/Enron@Enron, Johan
Gerrese/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Barbara N Gray/HOU/ECT@ECT,
James Grace/Corp/Enron@ENRON, Mark Greenberg/NA/Enron@ENRON, Wayne
Gresham/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT,
Dan J Hyvl/HOU/ECT@ECT, Karen E Jones/HOU/ECT@ECT, Anne C
Koehler/HOU/ECT@ECT, Alan Larsen/PDX/ECT@ECT, Dan Lyons/HOU/ECT@ECT, Bruce
Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kay Mann/Corp/Enron@Enron,
Jane McBride/AP/Enron@Enron, Travis McCullough/HOU/ECT@ECT, Lisa
Mellencamp/HOU/ECT@ECT, Janet H Moore/HOU/ECT@ECT, Janice R
Moore/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT, Cheryl Nelson/NA/Enron@Enron,
Gerald Nemec/HOU/ECT@ECT, Marcus Nettelton/NA/Enron@ENRON, Limor
Nissan/NYC/MGUSA@MGUSA, Francisco Pinto
Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Angeline Poon/SIN/ECT@ECT, David
Portz/HOU/ECT@ECT, Dale Rasmussen/HOU/ECT@ECT, Coralina
Rivera/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael A Robison/HOU/ECT@ECT,
Daniel R Rogers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Elizabeth
Sager/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, Frank
Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Lance Schuler-Legal/HOU/ECT@ECT,
Sara Shackleton/HOU/ECT@ECT, Shari Stack/HOU/ECT@ECT, Carol St
Clair/HOU/ECT@ECT, Lou Stoler/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Sheila
Tweed/HOU/ECT@ECT, Steve Van Hooser/HOU/ECT@ECT, John
Viverito/Corp/Enron@Enron, Ann Elizabeth White/HOU/ECT@ECT, Randy
Young/NA/Enron@Enron, Stuart Zisman/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT,
Kimberlee A Bennick/HOU/ECT@ECT, Martha
Braddy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sarah
Bruck/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Genia FitzGerald/HOU/ECT@ECT, Nony
Flores/HOU/ECT@ECT, Linda R Guinn/HOU/ECT@ECT, Ed B Hearn III/HOU/ECT@ECT,
Mary J Heinitz/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Kathleen
Carnahan/NA/Enron@Enron, Deb Korkmas/HOU/ECT@ECT, Laurie Mayer/HOU/ECT@ECT,
Matt Maxwell/Corp/Enron@ENRON, Mary Ogden/HOU/ECT@ECT, Debra
Perlingiere/HOU/ECT@ECT, Larry Pardue/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Robert Walker/HOU/ECT@ECT, Kay Young/HOU/ECT@ECT, Merrill W Haas/HOU/ECT@ECT,
Andrea Calo/SA/Enron@Enron, Brent Hendry/NA/Enron@Enron, David
Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Greg Johnston/CAL/ECT@ECT, Peter
Keohane/CAL/ECT@ECT, Justin Boyd/LON/ECT@ECT, Edmund Cooper/LON/ECT@ECT, Mark
Elliott/LON/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT, Denis
O'Connell/LON/ECT@ECT, Robert Quick/LON/ECT@ECT, Paul Simons/LON/ECT@ECT,
Martin Rosell/OSL/ECT@ECT, Rahul Saxena/LON/ECT@ECT, Greg
Johnston/CAL/ECT@ECT, Mark Powell/CAL/ECT@ECT, Christian Yoder/HOU/ECT@ECT,
Matthias Lee/SIN/ECT@ECT, Suzanne Adams/HOU/ECT@ECT, Connie
Castillo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sheri L Cromwell/HOU/ECT@ECT,
Margaret Doucette/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janette
Elbertson/HOU/ECT@ECT, Kaye Ellis/HOU/ECT@ECT, Carolyn
George/Corp/Enron@ENRON, Jenny Helton/HOU/ECT@ect, Holly
Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jan M King/HOU/ECT@ECT, Taffy
Milligan/HOU/ECT@ECT, Pat Radford/HOU/ECT@ECT, Becky Spencer/HOU/ECT@ECT,
Linda J Simmons/HOU/ECT@ECT, Dina Snow/Corp/Enron@Enron, Twanda
Sweet/HOU/ECT@ECT, Brenda Whitehead/HOU/ECT@ECT, Yo Yamanishi/AP/Enron@Enron,
Claudia Meraz/HOU/ECT@ECT, Reginald Shanks/HOU/ECT@ECT
cc:

Subject: Carlos A. Sole', III - Transfer from EECC

Carlos A. Sole' III,  Senior Counsel, joined the EWS Legal Department on
February 12.  Carlos will report to Barbara Gray and will temporarily be
located in EB3858E.  Please stop by and welcome Carlos to the department.

Janette Elbertson
Enron North America Corp.
Legal Department - EB3326
Telephone:  (713) 853-7906
Fax:  (713) 646-2600
janette.elbertson@enron.com


Attached, in Word and WordPerfect, is the current draft of the Facility
Agreement, marked against the version circulated Wednesday night.  There will
be a conference call to finalize this document and the Hawaii I Facility
Agreement Thursday morning at 9:30 cst.

Muriel C. McFarling
Andrews & Kurth L.L.P.
1717 Main Street, Suite 3700
Dallas, Texas 75201
(214) 659-4461
(214) 659-4784 (fax)

 - Hawaii_II.wpd
 - Hawaii_II.doc


ENA's master is with TD, New  York Branch.  Which branch are we dealing with?


ClickAtHome Pilot Three Members!

We hope your experience with the Clickathome ordering website and vendors has
been exciting and fun for you!  We need your feedback to determine next steps
of the program.  Please take 5 minutes to fill out the first of three
surveys. Your feedback is critical to the successful launch of this program
in the next few months.  Please complete the survey by clicking on the link
below by Monday, February 5th.

http://etcsurvey.corp.enron.com/wi/p0304201/i.asp?r=902&s=VPPYRSTO&l=9

Thanks.

Clickathome project team


I would suggest Dan Lyons from ENA Legal for Vision and Values.

Mark


Stocks Close Higher As Investors Cheer Earnings News
Dow Jones Business News- 10/22/01
Enron Faces Holder Suit From Fincl Chief Pacts
Dow Jones News Service- 10/22/01
Shapiro Haber & Urmy Files Class Action on Behalf of Purchasers of Enron Corporation Stock (NYSE: ENE) in The Period From July 13, 2001 Through October 16, 2001
PR Newswire- 10/22/01
Enron Board Approved Partnerships Run by Chief Financial Officer
PR Newswire- 10/22/01
USA: UPDATE 3-SEC looks into Enron deals, stock slides 20 pct.
Reuters English News Service- 10/22/01
Enron shares plunge 20 percent after acknowledging SEC inquiry
Associated Press Newswires- 10/22/01
STOCKWATCH Enron lower after SEC questions transactions; AG Edwards downgrades
AFX News- 10/22/01
Enron Corp. Information requested by SEC.
Regulatory News Service- 10/22/01
Enron Shares Slide as SEC Seeks Information on Deals With CFO's Partnership
Dow Jones Business News- 10/22/01
Enron Says SEC Asks About Related-Party Transactions (Update8)
Bloomberg- 10/22/01
UniPrime Signs Letter of Intent for Wind Energy Park Project
Business Wire- 10/22/01

Stocks Close Higher As Investors Cheer Earnings News
By Peter Edmonston

10/22/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
The Wall Street Journal Online
Stocks rallied sharply Monday despite the widening anthrax scare, as a batch of better-than-expected quarterly earnings reports cheered investors.
The Dow Jones Industrial Average gained 172.92, or 1.9%, to close at 9377.03 after gaining 40.89 points Friday. The Nasdaq Composite Index rose 36.75, or 2.2%, to 1708.06 after climbing 18.59 points in the previous session.
Other major stock indexes gained ground Monday. The Standard & Poor's 500-stock index added 16.42 to 1089.90, the New York Stock Exchange Composite Index rose 7.13 to 561.45, and the Russell 2000 Index gained 4.80 to 430.50.
Bonds were mixed and the dollar strengthened.
The stock market's gains were tempered briefly by news that a postal worker in Washington, D.C., was diagnosed with anthrax contracted by inhalation. Additionally, two other postal workers in Washington have died and their deaths are being investigated to determine if they died of that same ailment.
But stocks took the anthrax reports in stride, suggesting a new and surprising level of confidence among market participants, some analysts said Monday. "The market is really shrugging off this news," said Mark Donahoe, a managing director at U.S. Bancorp Piper Jaffray.
Upbeat earnings news from American Express, released Monday afternoon, seemed to give stocks an additional lift.
Investors may be shifting their focus away from concerns about anthrax exposure and U.S. military maneuvers in Afghanistan to take a closer look at quarterly earnings results, said Steven Kroll Sr., managing director at Monness, Crepsi & Hardt.
The uncertainty on the global front "looks like it is going to be a long, drawn-out affair," Mr. Kroll said. "I think stocks will revert back to being earnings-driven."
Although dismal by ordinary standards, last week's flood of quarterly earnings reports got a reasonably upbeat reception from investors, who seem to have approached them with extremely low expectations. "The markets acted pretty well last week in light of some very ugly earnings," said Mr. Donahoe of U.S. Bancorp. That resilience might be giving hope to investors this week, he added.
Still, investors will be carefully sifting through quarterly results in the coming week to get a fix on how the fourth quarter is shaping up, Mr. Kroll argued.
Third-quarter earnings showed several pockets of strength on Monday, with big companies such as Minnesota Mining and Manufacturing and U.S. Steel posting results that met or topped analysts' estimates.
The Dow industrials got an additional boost shortly after 2 p.m. EDT when index component American Express reported earnings that, excluding certain items, beat Wall Street previously lowered estimates.
The financial-services concern posted net income of $298 million, or 22 cents a share, down 60% from $737 million, or 54 cents a share, a year earlier. Excluding charges related to a corporate restructuring and the September 11 attacks, American Express said it would have earned $595 million, or 45 cents a share, for the latest quarter. Analysts had been expecting earnings of 30 cents a share, according to Thomson Financial/First Call.
Shares of American Express surged after the quarterly earnings release, closing up 3.4% at $30.32.
Chip stocks helped lead the Nasdaq composite higher, with the Philadelphia semiconductor index gaining 5.4%. The rally seemed to be a continuation of Friday's gains in the sector, sparked by positive earnings news from KLA-Tencor.
U.S. Steel, the nation's No. 1 steelmaker, said it swung to a third-quarter loss from a profit a year earlier, hurt by oversupply and a weak economy. But excluding charges related to the closure of one mill and damage at another, U.S. Steel said its loss was much narrower than what was forecast by analysts surveyed by Thomson Financial/First Call. Shares of U.S. Steel rose 9.7% to $14.74.
Investors also sent 3M shares nearly 5% higher after the maker of chemical and adhesive products squeaked by Wall Street estimates, despite a 21% decline in net income. And oil producers Conoco and USX-Marathon Group handily beat analysts' forecasts.
But not all the earnings news was cheery. Local phone company SBC Communications recorded net income that was slightly below estimates. Shares of SBC, a component of the Dow industrials, fell 5.1% to $41.40.
Meanwhile, the outlook for corporate profits in the fourth quarter seems discouraging, some analysts noted. On Monday, 3M guided Wall Stret's earnings expectations lower for the upcoming quarter, and a top executive at U.S. Steel told analysts that the company's fourth quarter would be "difficult."
Companies "are meeting third quarter expectations, but they are talking down the fourth quarter," said Mr. Kroll of Monness Crespi & Hardt. He said that some of the rise in Monday's markets might be a carryover from Friday's buying activity related to the expiration of U.S. stock option and index option contracts, an event known as "double witching."
One of the hardest-hit stocks on Monday was Enron, an energy concern that said that the Securities and Exchange Commission was seeking information about certain complex transactions it undertook with a limited partnership organized by its chief financial officer. Shares of Enron plunged 21% to $20.65.
Overseas, stocks closed higher. London's Financial Times-Stock Exchange 100-Share Index gained 1.1%, while Frankfurt's Xetra DAX index rose 2%. Earlier in the day, Japan's Nikkei 225 average closed with a gain of 0.3%, but Hong Kong's Hang Seng Index ended 0.3% lower.
In economic news, the Conference Board reported that its index of leading indicators for the month fell 0.5% in September, matching the estimates of economists surveyed by Thomson Global Markets. The index -- a composite of measurements aimed at forecasting likely changes in the economy -- included some data gathered after the Sept. 11 attacks.
The decline, which was the index's largest one-month drop since January 1996, confirmed that the widespread weakness in the U.S. economy is deepening, the Conference Board said. Falling stock prices and rising initial unemployment claims were two of the index components that contributed most negatively to the September reading.
In August, the leading-indicators index slipped 0.1%, less than the previous estimate of a 0.3% decline. Even so, the back-to-back declines paint a bleak economic picture, said Conference Board economist Ken Goldstein.
The two-month decline in the index suggests that the already-weak economy is likely to remain weak into next year, Mr. Goldstein said. The overall reading from these numbers indicates that manufacturing and services are experiencing a significant slowdown.
In major U.S. market action:
Stocks rose. On the Big Board, where 1.09 billion shares were traded, 1,813 stocks rose and 1,291 fell. On the Nasdaq, 1.49 billion shares changed hands.
Bonds were mixed. The 10-year Treasury note rose less than 1/16 point Monday, or 62.5 cents for each $1,000 invested. The yield, which moves inversely to its price, fell to 4.618%. The 30-year bond fell 1/16 point to yield 5.364%.
The dollar rose. The dollar bought 122.56 yen, compared with 121.20 yen late Friday. The euro traded at 89.18 U.S. cents, down from 89.84 cents late Friday.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Faces Holder Suit From Fincl Chief Pacts

10/22/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)
NEW YORK -(Dow Jones)- A shareholder of Enron Corp. (ENE) filed a derivative suit in Texas court alleging that Enron's board breached their fiduciary duties to the company by allowing Chief Financial Officer Andrew Fastow to create and run certain limited partnerships.
In a press release Monday, a law firm representing the unnamed shareholder said that Enron's board lost over $35 million by allowing Fastow to run these partnerships, which engaged in transactions with Enron and presented a conflict of interest.
The suit alleges that the limited partnerships bought Enron assets, permitting Fastow to use his inside knowledge of the company's financial condition to earn millions of dollars.
On Oct. 16, Enron announced that it will take a $35 million charge relating to the limited partnerships and revealed that the company had to repurchase 55 million of its shares in order to unwind its involvement in the partnerships, thereby reducing the company's shareholder equity by $1.2 billion.
On Monday, Enron said the Securities and Exchange Commission recently requested additional information regarding the limited partnerships.
On Oct. 19, The Wall Street Journal reported that Fastow, and possibly a handful of partnership associates, realized more than $7 million last year in management fees and about $4 million in capital increases on an investment of nearly $3 million in the partnership, which was set up in Dec. 1999 principally to do business with Enron.
Fastow has been finance chief of Enron since 1997 and has been with the firm 11 years, which included extensive work setting up and managing company investments.
Enron's New York Stock Exchange listed shares fell to a 52-week low on Monday following news that the SEC requested additional information.
A spokeswoman from Enron said the company has not seen the lawsuit and it does not comment on pending litigation.
-Thomas Gryta; Dow Jones Newswires; 201-938-5400

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Shapiro Haber & Urmy Files Class Action on Behalf of Purchasers of Enron Corporation Stock (NYSE: ENE) in The Period From July 13, 2001 Through October 16, 2001

10/22/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)
BOSTON, Oct. 22 /PRNewswire/ -- The law firm of Shapiro Haber & Urmy LLP has filed a class action suit alleging securities fraud in the United States District Court for the Southern District of Texas (Houston Division), 515 Rusk Ave., Houston, Texas 77002, against Enron Corporation ("Enron") (NYSE: ENE) and certain of its officers and directors.
The case was filed on behalf of all purchasers of the common stock of Enron during the period from July 13, 2001 through October 16, 2001, inclusive (the "Class Period").
The complaint alleges that the defendants violated section 10(b) of the Securities Exchange Act of 1934 ("the Exchange Act"), and Rule 10b-5 promulgated thereunder, and that defendants' wrongful conduct artificially inflated the price of Enron common stock during the Class Period. The complaint charges that the defendants misrepresented and concealed material facts concerning the Company's financial transactions with two partnerships established by Enron's Chief Financial Officer, which resulted in substantial losses to Enron and a reduction in shareholders' equity of over $1 billion. The price of Enron's common stock plummeted over 20% in just three trading days following disclosure of the financial losses resulting from Enron's dealings with these partnerships.
Plaintiff seeks to recover damages suffered by class members and is represented by the law firm of Shapiro Haber & Urmy LLP, which has successfully prosecuted numerous securities class actions on behalf of defrauded investors. More information about the firm and its qualifications is available on the firm's website at www.shulaw.com.
If you are a member of the class described above, you may wish to join the action. You may move the court to serve as a lead plaintiff no later than December 21, 2001.
If you would like a copy of the complaint, would like to discuss joining this action as a lead plaintiff, or would like to inform us that you are a member of the proposed class, please contact Thomas G. Shapiro, Esq. or Liz Hutton, paralegal, Shapiro Haber & Urmy LLP, 75 State Street, Boston, MA 02109, (800) 287-8119, fax at (617) 439-0134, or e-mail at cases@shulaw.com.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X66791593

/CONTACT: Thomas G. Shapiro, Esq. or Liz Hutton, paralegal, Shapiro Haber & Urmy LLP, +1-800-287-8119, cases@shulaw.com/ 16:54 EDT

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Board Approved Partnerships Run by Chief Financial Officer

10/22/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)
NEW YORK, Oct. 22 /PRNewswire/ -- An Enron (NYSE: ENE) shareholder has filed a derivative suit in Texas state court which charges that Enron's board of directors breached their fiduciary duties to the Company by allowing its CFO, Andrew Fastow to create and run certain limited partnerships. The Enron board lost the Company over $35 million by allowing Fastow to run these partnerships, which engaged in transactions with Enron and presented a clear conflict of interest for the Enron CFO.
In addition to other transactions, the limited partnerships bought Enron assets, permitting Fastow to use his inside knowledge of the Company's financial condition to earn millions of dollars for himself and the limited partnerships. On October 16, 2001 the Company announced that it would take a $35 million charge relating to the limited partnerships. It was also revealed that the Company had to repurchase 55 million of its shares in order to unwind its involvement in the partnerships, thereby reducing the Company's shareholder equity by $1.2 billion.
On October 22, 2001, the Company announced that the SEC recently requested additional information regarding these limited partnerships.
If you would like additional information regarding this lawsuit, you may contact Murielle Steven Walsh at Pomerantz Haudek Block Grossman & Gross LLP, New York, New York, 888-476-6529 ((888) 4-POMLAW) or mjsteven@pomlaw.com.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X60348122

/CONTACT: Murielle Steven Walsh, Esq. of Pomerantz Haudek Block Grossman & Gross LLP, +1-888-476-6529 (+1-888-4-POMLAW), mjsteven@pomlaw.com/ 15:41 EDT

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
USA: UPDATE 3-SEC looks into Enron deals, stock slides 20 pct.
By David Howard Sinkman

10/22/2001
Reuters English News Service
(C) Reuters Limited 2001.
NEW YORK, Oct 22 (Reuters) - Shares of Enron Corp. slumped more than 20 percent on Monday after it said U.S. regulators are looking into company transactions, another blow to a company whose chief executive resigned in August.
A spokesman for North America's biggest buyer and seller of natural gas and electricity declined to discuss an inquiry by the U.S. Securities Exchange Commission, but said it was cooperating. The SEC also declined to outline details of its inquiry.
Investor confidence in the company has been rocked by reports from The Wall Street Journal about its relationship with two limited partnerships that were run until recently by Enron's chief financial officer, Andrew Fastow. The company also reported last week its first quarterly loss in more than four years, and took $1.01 billion in charges and writedowns on ill-fated investments.
Problems at Enron surfaced two months ago when CEO Jeff Skilling resigned after only six months at the helm.
Enron shares declined $5.49, or 21 percent, to $20.56 in Monday afternoon trade on the New York Stock Exchange, shaving off almost $4.2 billion of its market capitalization. The stock, the biggest decliner by percentage loss on the NYSE, fell as much as 22.8 percent on Monday, when it opened at its lowest level since September 1998.
Shares declined 23 percent last week after the Journal ran its first story about the limited partnerships on Wednesday.
Enron declined to comment on whether the SEC's inquiry into "certain related party transactions" involved the partnerships.
"Related party transactions" is the heading used by Enron in its 1999 and 2000 annual reports to discuss dealings with its limited partnerships, LJM Cayman LP and the larger LJM2 Co-Investment LP, which engaged in complex hedging transactions involving company assets worth hundreds of millions of dollars.
Fastow severed his ties to the partnerships in June. LJM was set up in June 1999 for energy-related investments, and LJM2 in December 1999 for energy-and communication-related investments.
The Journal reported $35 million of its third-quarter loss of $638 million were connected with the limited partnerships
Curt Launer, an analyst at Credit Suisse First Boston, said investors should question Enron's use of real value accounting when the value of certain assets, "most notably in telecommunications," have declined precipitously.
"Investors have had several opportunities to question Enron's credibility and at each of those turns the share price has declined," Launer said.
Some analysts, though, cautioned against assuming fire when there might only be smoke.
"This is an inquiry, not an investigation, and I cannot imagine Enron's attorneys or accountants would allow it do to something illegal," said Merrill Lynch analyst Donato Eassey.
"It's easy for the market to kick a company when its down, but these challenges do not last for a solid company, and we think Enron is one."
Shares in the company are down 75 percent this year.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron shares plunge 20 percent after acknowledging SEC inquiry

10/22/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.
HOUSTON (AP) - Shares of Enron Corp. plunged more than 20 percent Monday after the energy trading giant said the Securities and Exchange Commission had sought information company's transactions with limited partnerships, which were managed by an Enron senior officer.
In a statement, Enron said it had provided the regulatory agency with information in response to an inquiry last week.
"We welcome this request," Enron chairman and chief executive officer Kenneth L. Lay said in a statement Monday. "We will cooperate fully with the SEC and look forward to the opportunity to put any concern about these transactions to rest."
Investors were upset by the news, however, sending shares of Enron down dlrs 5.30 to dlrs 20.75 in heavy trading on the New York Stock Exchange.
The transactions took place in 1999 and 2000, according to Houston-based Enron's 2000 annual report. They resulted in a dlrs 16 million pre-tax gain to Enron in 1999 and a dlrs 36 million loss in 2000.
Enron officials declined to provide details about the transactions or name the limited partnerships, instead referring questions to a section of the annual report on related party transactions.
"Enron entered into transactions with (limited partnerships) to hedge certain merchant investments and other assets," according to the section in the annual report.
Enron spokesman Mark Palmer said the SEC first contacted Enron last week and described the request is an "informal inquiry."
"This is not an investigation," he said. "We see the request as an opportunity to put this issue behind us."
SEC spokesman John Heine said he could not comment on the filings. "We can't confirm or deny that type of activity," Heine said.
The electricity marketer and natural gas provider says both internal and external auditors and attorneys reviewed the related party arrangements, the company's board was fully informed of and approved the arrangements, and they were disclosed in the company's SEC filings.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
STOCKWATCH Enron lower after SEC questions transactions; AG Edwards downgrades

10/22/2001
AFX News
(c) 2001 by AFP-Extel News Ltd
NEW YORK (AFX) - Shares of Enron Corp were down sharply in late morning trade, after the Securities and Exchange Commission requested the company to provide information on certain related-party transactions, prompting AG Edwards to downgrade the stock to 'hold' from 'buy', dealers said.
At 11.10 am, Enron was down 4.29 usd, or 16.47 pct, at 21.76. The DJIA was up 57.57 points at 9,261.68, and the S&P 500 composite index was up 5.57 points at 1,079.05.
In a statement this morning, Enron confirmed that the SEC had requested documents, and said it would "cooperate fully" with the commission.
However, the company did not give any details of the transactions concerned or of the reasons behind the SEC's request.
According to AG Edwards analyst Mike Heim, Enron "significantly reduced" its equity to unroll a partnership arrangement with a partially-owned subsidiary formerly run by Enron's chief financial officer.
"This arrangement, which was not discussed in past SEC filings, has led to a growing distrust of the company by the financial community.
"In our opinion, the market is most likely overreacting to the news being disseminated over the last few days.
"However, we can give no assurances that all the problems at Enron have been fully disclosed," Heim said.
In its statement this morning, Enron said although its internal and external auditors and attorneys have reviewed the related-party arrangements, adding that the Board was "fully informed of and approved these arrangements", which were disclosed in the company's SEC filings.
"We believe everything that needed to be considered and done in connection with these transactions was considered and done," said chief executive Kenneth Lay.
ng/gc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.
Enron Corp. Information requested by SEC.

10/22/2001
Regulatory News Service
(C) 2001
INTNTH 22 October 2001
ENRON ANNOUNCES SEC REQUEST, PLEDGES COOPERATION
HOUSTON - Enron Corp. (NYSE: ENE) announced today that the Securities and Exchange Commission has requested that Enron voluntarily provide information regarding certain related party transactions.
"We welcome this request," said Kenneth L. Lay, Enron chairman and CEO. "We will cooperate fully with the SEC and look forward to the opportunity to put any concern about these transactions to rest. In the meantime, we will continue to focus on our core businesses and on serving our customers around the world."
Enron noted that its internal and external auditors and attorneys reviewed the related party arrangements, the Board was fully informed of and approved these arrangements, and they were disclosed in the company's SEC filings. "We believe everything that needed to be considered and done in connection with these transactions was considered and done," Lay said.
Enron is one of the world's leading energy, commodities and services companies. The company markets electricity and natural gas, delivers energy and other physical commodities, and provides financial and risk management services to customers around the world. Enron's Internet address is www.enron.com. The stock is traded under the ticker symbol "ENE."
END
'MSCEAFEAALXFFFE.

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

Enron Shares Slide as SEC Seeks Information on Deals With CFO's Partnership

10/22/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)
HOUSTON -- Shares of Enron Corp. slumped Monday after the energy-trading concern said the Securities and Exchange Commission has asked for information about "certain related party transactions," including those between Enron and a limited partnership organized by its chief financial officer.
Enron promised to cooperate fully with the SEC request and said in a prepared statement that it "welcomes" the request and looks forward to put "any concern about these transactions to rest."
In 4 p.m. EDT trading on the New York Stock Exchange, Enron (ENE) shares fell $5.40, or 21%, to $20.65.
Last week The Wall Street Journal reported that a limited partnership organized by Andrew Fastow, Enron's chief financial officer, made millions in profits in transactions with the firm. The story cited information reported in an internal partnership document.
Enron also said last week it will repurchase up to 55 million shares that it had issued as part of transactions with LJM2 CO-Investment LP, the limited partnership created by Mr. Fastow.
In addition, Enron took a $1.01 billion charge in the third quarter, mostly connected with write-downs of bad investments, producing a loss of $618 million, or 84 cents a share. Excluding charges, income was $393 million, or 43 cents a share, in the quarter.
The charge covers a wide range of items including costs related to the limited partnerships that were, until recently, by Mr. Fastow.
The company said the costs connected with the partnerships total $35 million and involve the early termination of "certain structured finance arrangements."
The partnerships were set up two years ago, and while the company maintains that they are perfectly proper, some have suggested that it is a conflict of interest for Enron's chief financial officer to be involved in a partnership that was looking to purchase Enron assets, the Journal reported.
The energy company said its auditors reviewed the arrangements and its board was fully informed and approved the deals, which were disclosed in SEC filings.
"We believe everything that needed to be considered and done in connection with these transactions was considered and done," Enron Chairman and Chief Executive Kenneth Lay said on Monday.
Separately, an Enron shareholder filed a derivative lawsuit in Texas court alleging Enron's board breached its fiduciary duties to the company by allowing Mr. Fastow to create and run certain limited partnerships.
A law firm representing the unnamed shareholder said in a prepared statement that Enron's board lost over $35 million by allowing Mr. Fastow to run these partnerships, which engaged in transactions with Enron and presented a conflict of interest.
The suit alleges that the limited partnerships bought Enron assets, permitting Mr. Fastow to use his inside knowledge of the company's financial condition to earn millions of dollars.
-- Bill Platt of Dow Jones Newswires contributed to this report.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

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

Enron Says SEC Asks About Related-Party Transactions (Update8)
2001-10-22 17:10 (New York)

Enron Says SEC Asks About Related-Party Transactions (Update8)

     (Adds in sixth paragraph that analyst estimates dissolving
affiliated companies would cost $3 billion.)

     Houston, Oct. 22 (Bloomberg) -- Enron Corp.'s shares fell 21
percent after the Houston-based company said the Securities and
Exchange Commission requested information on partnerships run by
Chief Financial Officer Andrew Fastow and other executives.

     Enron, the largest energy trader, created partnerships and
other affiliated companies to buy and sell assets such as power
plants to lower the debt on its books. An investor sued Enron's
board Wednesday, saying two partnerships cost the company $35
million and Fastow's leadership of them was a conflict of
interest.

     Investors today said they were concerned that Enron may be
forced to dismantle the affiliated companies by paying off the
owners in cash or stock. Chief Executive Ken Lay said last week he
may be have to ``unravel'' agreements that created the companies
if Enron's debt ratings fall too far.

     ``We need confidence their long-term credit rating won't go
below investment grade,'' said Roger Hamilton, an analyst at John
Hancock's value funds, which own 600,000 Enron shares.

      Enron reduced shareholders' equity by $1.2 billion when it
repurchased 55 million shares of two such partnerships controlled
by Fastow, LJM Cayman and LMJ2 Co-Investment, the Wall Journal
reported last week.

     Dismantling more of the affiliated companies and partnerships
would cost Enron or its shareholders as much as $3 billion, Ray
Niles, a Salomon Smith Barney analyst, wrote in a report to
investors today.

     Enron shares fell $5.40 to $20.65. They touched $19.67 during
the day's trading, the lowest level since Jan. 15, 1998.

                           Shares Plunge

     The stock has fallen 75 percent this year amid concerns about
failed investments in trading of space on fiber-optic
communications networks and a water company, and the resignation
of Jeff Skilling as CEO in August after seven months on the job.

     While Skilling said he resigned for personal reasons,
investors say his departure led them to question whether the
company was concealing problems, including possible liabilities
from affiliated companies.

     On Tuesday, Enron surprised many investors when it reported a
$618 million third-quarter loss, the result of writing off $1.01
billion in failed investments.

      Moody's Investors Service placed the company's debt on watch
for possible downgrade. The company's debt is rated at investment
grade by Fitch, Standard & Poor's and Moody's.

     The company received a faxed request for information from the
SEC on Wednesday asking for information, spokesman Mark Palmer
said, and will respond ``as soon as possible.''

     ``We will cooperate fully with the SEC and look forward to
the opportunity to put any concern about these transactions to
rest,'' Lay, who is also Enron's chairman, said in a statement.

                          Dilution Fears

     Enron has formed at least 18 companies to serve as financing
vehicles for its projects, based on filings with the Texas
secretary of state. Fastow and other Enron executives are named as
the controlling partners or the board members in the companies.

     Some have bought Enron assets such as power plants, removing
the debt for those projects from Enron's books. That allows Enron
to keep cash earned from the main trading business from supporting
what it views as secondary businesses, Standard & Poor's debt
analyst Todd Shipman said.

      Enron brokers trades of electricity, natural gas and other
commodities as well as owns power plants and natural-gas
pipelines.

     Dismantling the affiliates would be costly. Whitewing
Management, an affiliated company that has bought 14 Enron power
plants and lists Fastow as managing director, holds 250,000
preferred shares of Enron.

     Enron may have to convert the preferred shares to common
stock if share prices fall below a certain level and the credit
rating drops below investment grade, according to company filings.
That would dilute the value of common shareholders' investment.

     ``The concern is how many of these dilutive structures are
out there?'' Shipman said. ``Investors are worried they might have
to share their Enron earnings with a lot more people than they
originally thought.''

                        Worrisome Financing

     Enron's auditors and attorneys reviewed the company's
``related party arrangements,'' the board approved them, and they
were disclosed in SEC filings, Enron said in its statement.

     That hasn't eased concerns. The reduction of shareholder
equity by $1.2 billion from the LJM partnerships is reason to
worry about Enron's other financing vehicles, wrote Niles, the
Salomon analyst. Enron also may take another $2.4 billion in
losses from investments in the Dabhol power plant in India and
projects in South America, he wrote.

     Enron's 8 percent coupon bonds due in 2005 fell $34 per
$1,000 face value to be offered at $1,022 today from $1,056 on
Friday, traders said. Yield on the debt rose to 7.33 percent from
6.33 percent.

     Based on Bloomberg composite ratings, most of Enron's long-
term debt is rated at BBB2 and BBB1, two or three levels above
investment grade.

     Fastow continues to work, and Enron hasn't punished him,
Palmer said. Fastow declined to be interviewed, spokeswoman Karen
Denne said. SEC spokesman John Heine declined to comment on the
agency's request to Enron.

     ``We believe everything that needed to be considered and done
in connection with these transactions was considered and done,''
Lay said in the statement.

UniPrime Signs Letter of Intent for Wind Energy Park Project

10/22/2001
Business Wire
(Copyright (c) 2001, Business Wire)
APACHE JUNCTION, Ariz.--(BUSINESS WIRE)--Oct. 22, 2001--UniPrime Capital Corporation Inc. (NQB:UPRC) announced today that it has signed a Letter of Intent (LOI) with Jessel Enterprises Inc. of Los Angeles for a partial interest in a wind park ground lease.
This ground lease, owned by Enron Wind Development Corp., a subsidiary of Enron Corp. (NYSE:ENE), represents in excess of 3,000 acres of prime natural land in the Tehachapi Valley, possessing an extremely high-quality wind source. The output at this particular location is rated at approximately 64 megawatts, and can service roughly 40,000 residential customers. Revenue generation from the Jessel Enterprises wind park is estimated to be $96 million per year.
UniPrime Capital Corporation president and CEO Randy Russo stated, "We are very pleased to have this opportunity to assist in providing a clean, environmentally favored alternative power supply to California consumers, especially in view of the recent crisis condition that many west coast markets have been experiencing."
Additional information about this particular wind park project, and the industry in general, can be found at the American Wind Energy Association's website at http://www.awea.org. UniPrime Capital Corporation is a publicly traded investment holding company trading under the symbol UPRC.

Statements contained in this document that are not historical in nature are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause future results to differ materially from those set forth in such forward-looking statements. UniPrime Capital Corporation undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof. Such risks and uncertainties with respect to UniPrime Capital Corporation include, but are not limited to, its ability to successfully implement internal performance goals, performance issues with suppliers, regulatory issues, competition, the effect of weather, exposure to environmental issues and liabilities, variations in material costs and general and specific economic conditions.


nice

 -----Original Message-----
From: 	Valdes, Maria
Sent:	Wednesday, December 05, 2001 1:07 PM
To:	Dorland, Chris; Burnett, Lisa
Subject:

 << File: IMG_0165.JPG >>
 << File: IMG_0166.JPG >>


Sally,

Shari Mao contacted her boyfriend and he gave her the name of a larynx
specialist at Methodist Hospital - Dr. Donald T. Donovan (713-798-5900).  I
hope this might be helpful.

Lisa Cousino


-----Original Message-----
From: 	Polsky, Phil
Sent:	Thursday, April 18, 2002 8:44 AM
To:	Germany, Chris
Subject:	Nymex Strip

go to the link below to look at the gas strip.

 -----Original Message-----
From: 	Polsky, Phil
Sent:	Wednesday, April 17, 2002 4:27 PM
To:	Gregory, Paul
Subject:

http://hotcs.enron.com/fundyplasma/site/Financial.jsp


Any possibility of adding a back up for me in case of my absence?  Jennifer
Denny is the person I would like to designate.

I assume (Andy, correct me if you think otherwise), that this message will go
out to all business units, and we here in Houston will handle everything.

Thanks
Sheri

Leslie Hansen
11/09/2000 04:35 PM
To: Andy Zipper/Corp/Enron@Enron, Sheri Thomas/HOU/ECT@ECT
cc: Mark Taylor/HOU/ECT@ECT
Subject: Third Party Trading Platform Policy

Andy and Sheri:

Here is a draft of what I propose Mark Frevert and Mark Haedicke send out to
the traders re use of third-party electronic trading platforms.  Note that I
included a contact for questions at the bottom of the policy.  I have listed
myself for now -- who would you like to designate?  Will this e-mail go out
to European and other business units as well, and if so, from the same
senders?

Mark Taylor has approved the e-mail and the policy.

Let me know what you think.  I will circulate to Mark Haedicke for approval
as soon as I receive your comments and/or approval.

Leslie

**************************************************************************
Many of you have received offers to use third -party electronic trading
platforms like Dynegydirect.  Enron has a Policy Relating to Use of Third
Party Electronic Trading Platforms to serve as a guide to appropriate
registration for and use of such trading platforms.  The Policy provides that:

You must notify the Enron Net Works LLC (ENW) designee set out in the Policy
if you would like to trade on such a trading platform.
All registration and other documentation must be sent to the ENW designee,
who will coordinate the necessary legal and administrative review.
You are not authorized to use a third-party electronic trading platform until
you are authorized by ENW.
The Master User for all third-party electronic trading platform accounts will
be an ENW designee.
If you are currently using any third-party electronic trading platform,
please notify the ENW designee.

A full copy of the Policy Statement is attached for your review.


Christmas is upon us!!  Please see the below invitation and come join us on
Thursday 12/14/00 on the 50th floor of the Enron building at 1400 Smith
Street in the executive dining room.  If you have never seen the 50th floor
decorated for Christmas, it should be a treat.  I hope to see you there.  If
you cannot make it, Happy holidays and goodwill to all.  Please RSVP to
jeffrey.mcclellan@Enron.com.

Jeff McClellan
President - Cougars@Enron
713-853-4779


Jeff,
Steve Kean asked that I forward this document to you.  We transmitted this to
DOE today for its use in negotiating a package with Barton.   Via Ed
Gillespie, we are also transmitting it directly to Barton.  (Ed's wife is
Barton's fundraiser.)

Linda R.


Danny

Will you have a chance to give Craig a call?  He would be a great
addition to your group despite the fact that he lives in the Woodlands.

John


Worked on Project Hodge


1. I appreciate everyone who participated in the call today.  I think that
the discussion proved that we can find consensus on a reasonable approach for
transmission pricing and energy markets.

2. To make more clear about the Regional Plans, I think that we need to
consider the following.

A. BACKGROUND

Timelines of Current Process
Current Players & Current Positions
Allies
Key Issues now facing the process

B. MOVING FORWARD

Top Issues upcoming
External Factors (e.g., will Entergy join SPP)
Resource Needs
Relationship to Commercial Objectives / Business Plans

C. OTHER ISSUES / CONCLUSION

I hope this helps set an outline for the Regional Plans.  The key idea is
that I want to make sure everyone has a calendar of where we are going and
what issues need to be addressed.  Don't be shy about adding other topics and
issues.  We need to have this to communicate within our group and to the
commercial people.  I don't expect this to be easy, but I think that it will
be helpful.

3. I think that we need to put more detail around the entire structure.  This
would entail developing four things (1) a tariff, (2) ISO Systems &
Procedures, (3) Day Ahead PX Energy Market, (4) Transmission Flowgate PX
Market.  These are the four building blocks to a New Marketplace.

My hope is for Enron to put these things out in a detailed framework using
"off the shelf" material.  I know that Tom Delaney has already started
working on a tariff.  I think we could adapt the Cal PX model into point 3.
We could probably use the APX Flowgate System for point 4.  On the ISO, maybe
we could go to ESCA and have a Detailed Scope / Work Plan and fees on setting
up an ISO (including costs of operation over time).  It would make sense to
me to do this very formally (including setting energy market zones and
defining the commercially significant Flowgates).  I would use the MISO as
the market to focus on, but am willing to listen to other thoughts.

Please let me know what everyone thinks.

Jim


fyi, rick
 -----Original Message-----
From: 	Roberts, Dave
Sent:	Thursday, March 22, 2001 7:17 PM
To:	Buy, Rick
Cc:	Hachen, James
Subject:	EAM Woodlands Meeting

Rick,

I just realized that I failed to thank you for coming to the Woodlands last month to speak to the EAM and AOPS teams regarding risk management at EES.  In the brief time I've been at Enron, I've focused on bringing a more disciplined approach to, and understanding of, the importance of identifying and managing the risk inherent in the EAM business.  However, you provided a far more global perspective, including the view senior management, the Board, and the investment community. It meant a lot to the group to have someone from senior management take the time to meet with us.

I'd also like to acknowledge the support we've received from Jay and others within RAC  - I appreciate their efforts.

Again, thanks for the visit.

Dave Roberts


HOUSTON - Enron announced today the launch of EnronOnline, a global
Internet-based transaction system for wholesale energy and other
commodities.  EnronOnline will allow participants to not only view commodity
prices in real-time but also to directly transact with Enron over the
Internet free of commission. The transaction system will go live on Nov. 29,
1999, with the launch of North America natural gas to be followed by all
other products over the next six weeks.
 "EnronOnline offers customers the next level of wholesale energy transaction
service by having easy and simple access to Enron,s prices and products,"
said Jeffrey K. Skilling, president and COO of Enron.  "This Internet system
complements Enron,s extensive marketing capabilities and gives our
counterparties the choice of transacting over the telephone or instantly
through our website."
Enron,s customers across the world will be able to access several hundred
traded products through EnronOnline. The company will leverage its wholesale
market expertise to publish real-time prices for power, natural gas, coal,
weather products, liquids, petrochemicals, pulp and paper, emission credits
and other commodities in the Americas, Europe and Asia. It will continue
expanding web-based commodity and product offerings globally.
 "Unlike other Internet commodity service providers, EnronOnline doesn,t
match buyers with sellers," said Skilling.  "Customers will be able to
instantaneously conduct transactions directly with an Enron company as a
principal."
Real-time capabilities in the United States will be delivered wherever
possible through Enron Communication, Inc.,s intelligent fiber optic network.
This system is designed to combat web latency and create a true real-time
environment online for Enron,s customers.
 A preview of the system is currently available at www.EnronOnline.com.
 Enron is one of the world,s leading electricity, natural gas and
communications companies.  The company, which owns approximately $34 billion
in energy and communications assets, produces electricity and natural gas,
develops, constructs and operates energy facilities worldwide, delivers
physical commodities and financial and risk management services to customers
around the world, and is developing an intelligent network platform to
facilitate online business.  Enron,s Internet address is www.enron.com and
the stock is traded under the ticker symbol, "ENE."


If you absolutely can not find enough of the right players to go on the
cruise, let me know.  My husband is scheduled for a baseball game on
Wednesday night.  If I could find some Diamond level tickets for another day
for him, he might consider giving up his tickets for Wednesday night.  This
is a last resort sort of measure, however, so I hope that you find success in
response from others. But do let me know...


FYI
----- Forwarded by Bernadette Hawkins/Corp/Enron on 03/13/2001 06:30 PM -----

	"Jackie Gallagher" <JGallagher@epsa.org>
	03/13/2001 05:48 PM

		 To: <bhawkin@enron.com>, <bmerola@enron.com>, <christi.l.nicolay@enron.com>,
<donna.fulton@enron.com>, <james.steffes@enron.com>,
<janelle.scheuer@enron.com>, <jeff_brown@enron.com>, <jhartso@enron.com>,
<Mary.Hain@enron.com>, <rshapiro@enron.com>, <sarah.novosel@enron.com>,
<tom.hoatson@enron.com>
		 cc:
		 Subject: Summary of FERC Recommendation on California Market Monitoring &
EPSA Comment Outline

MEMORANDUM

TO: Regulatory Affairs Committee
       Power Marketers Working Group

FROM: Joe Hartsoe, Regulatory Affairs Committee Chair
            Bob Reilley, Power Marketing Working Group Chair
            Julie Simon, Vice President of Policy
            Erin Perrigo, Senior Manager of Policy

DATE: 03/13/01

RE: Summary of the FERC Staff Recommendation on California
      Market Monitoring and Mitigation and EPSA Comment
      Outline

Pursuant to its December 15, 2000 Order (EL00-95-000) (December Order), FERC
released its Staff Recommendation on Prospective Market Monitoring and
Mitigation for the California Wholesale Electric Power Market (Report),
issued March 9th, addressing mitigation of price volatility in the California
markets.  Comments on the Report are due on Thursday, March 22nd.  The
following is a summary of the Report, along with an outline of possible EPSA
comments.  We will discuss the report and EPSA's comments further on our
weekly Power Marketers conference call.  To access the call, dial
1-800-937-6563 and ask for the Julie Simon/EPSA call.  If you have any
questions, please feel free to contact Erin Perrigo at 202-628-8200 or
eperrigo@epsa.org.

Report Summary

Stressing that the proposal is designed to apply only to approximately five
percent of the market that remains in real-time and not to the bilateral and
forward markets, the Report immediately notes that "ultimately the real
solution to California's problems lies in increased investments in
infrastructure."

The Report recommends that the California ISO conduct a real-time auction
with associated measures to mitigate the impact of physical and economic
withholding and significant exercises of market power during periods of
scarcity:

(1) Coordinating and Controlling Outages -  The ISO should coordinate and
approve all planned outages by units that have a Participating Generator
Agreement (PGA) with the ISO.  Coordination and outage control procedures
should then be coupled with reporting requirements to FERC and dispute review
should be expedited.  Similarly, the ISO should closely monitor unplanned
outages and report questionable outages to FERC for further investigation.

(2) Selling Obligations - All capacity that is available and not scheduled to
run under sellers with PGAs should be offered in the real-time market  - this
obligation would not be imposed on bilateral markets of the ISO day-ahead
markets.  PGA generators would have to submit to FERC a dependable capacity
for each unit in addition to other operating parameters necessary to
calculate marginal costs, such as heat rate.  FERC Staff would then use this
data, in combination with published fuel costs and emission credit data to
determine a price that the ISO would use pre-determined to mitigate prices
during times of reserve deficiency.  Load Serving Entities should also be
required to name their curtailment price and to identify which loads will be
curtailed.

(3) Price Mitigation - When called upon to provide the available and
unscheduled capacity as mentioned above, PGA unit prices would be mitigated
in hours when there is a reserve deficiency, or Stage 3 emergencies (the
Report notes that it is "these hours which are extremely conducive to the
exercise of market power by suppliers") and will be obligated to sell
capacity in real-time at the marginal cost of the highest-priced PGA until
called upon to run.

(4) Real-time Price Mitigation for Each Generating Unit - all generating
units should have a standing, confidential price based on its marginal
costs.  This price will be used by the ISO to establish the real-time market
clearing price when mitigation is appropriate.  Staff believes that a single
market clearing price auction design is appropriate, thus reversing the
recommendation to use an as bid design in the December Order.

(5) Market Clearing Price - All real-time energy offers should be paid the
applicable market clearing price.

(6) Conditions for Invoking Mitigation - Mitigation measures should only be
applied to critical operating periods, such as emergencies.

As noted in the Report, Staff recognizes that there are potential
difficulties in implementing the proposal, and that "there are no easy
answers to the current problems in the California market."  Among the
purported difficulties, Staff notes implementation problems with bidding
obligations on imported power, incentive effects on load scheduling,
treatment of purchased power, mitigating prices during emergencies, and
setting a price component for scarcity.

Suggested EPSA Comments

EPSA has a number of concerns with the proposal, however there are a few
things we commend.  Namely:  (1) the Staff's timely turnaround of the report,
as directed in the December Order; (2) their admission that the overarching
problem cannot be solved by these shorter-term mitigation measures, only by
increased investments in infrastructure; and (3) recommendation of the single
price auction in the real-time market, noting that it should be used for only
approximately five percent of the market.  Also, to stress the importance of
regulatory certainty, the Report recommends a date-certain "sunset" for the
mitigation approach of no more than one year.

Areas of concern include:

(1) It is not acceptable to use a cost-based model to explain what happens to
prices in a shortage period.  The oil shortages of the 1970s are a good
illustration - a nine percent cut in free world oil supplies led to the first
quadrupling of oil prices from about $3 to $12 per barrel.  Similarly, prices
rose to $42 in 1980 with an eight percent reduction in free world oil supply.

(2) Staff's proposal for calculation of the market clearing price does not
create a market clearing price in scarcity situations, and does not take into
account the customer's value of the commodity.  To the extent seller's costs
are used, full costs are not included Staff's recommendation.  As outlined in
EPSA's recently filed white paper on market monitoring, full costs should
include opportunity costs, scarcity value, capacity value, and risk.

(3) The Report fails to link high prices to any anti-competitive behavior,
yet still alleges such behavior throughout the Report.

(4) EPSA opposes the forced bidding into the real-time market as
recommended.  This prescription precludes and preempts competitive business
decisions and retards the healthy development of the market.

(5) The Report's method for calculating the market clearing price is not
illustrative of a true market and may create an artificial market clearing
price.  The method proposed in FERC's refund order of March 9th may be
preferable to the method proposed in this Report.  Staff's method only
includes participating generators and does not include imports, and
out-of-market purchases.  EPSA prefers a method that is more inclusive of
details and characteristics of a true market.


Some of the interconnection agreements that we are looking at, have metrics
for performance.  However, those metrics are specific to how the ILEC
performs with regard to the CLEC.  I believe those metrics are confidential
between the parties to the interconnection agreement.  Once we sign
agreements, we will receive reports from the ILECs on their performance
relative to us, in a very limited way.  We would not receive information
relative to that ILECs performance for any other carrier.

Sue Nord
03/21/2001 02:41 PM
To: Dung Tran/Enron Communications@ENRON COMMUNICATIONS
cc: Barbara A Hueter/NA/Enron@Enron, Donald_Lassere@enron.net, Jeff
Dasovich/NA/Enron@Enron, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Lara Leibman/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Marchris
Robinson/NA/Enron@Enron, Margo Reyna/NA/Enron@Enron, Mona L
Petrochko/NA/Enron@Enron, Ricardo Charvel/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Scott Bolton/Enron Communications@Enron
Communications, Stephen D Burns/Corp/Enron@ENRON, Susan M
Landwehr/NA/Enron@Enron, Xi_Xi@enron.net, Eric Benson/NA/Enron@ENRON, Mike
Dahlke/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Allison Navin/Corp/Enron@ENRON,
Carmen Perez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Karen Huang/Enron
Communications@Enron Communications, Ginger Dernehl/NA/Enron@Enron, Maureen
McVicker/NA/Enron@Enron, Elizabeth Linnell/NA/Enron@Enron

Subject: Re: Network Performance and Reliability

Hi Dung,

I haven't seen anything with performance or reliability metrics.  I'll send
this around to the other people in our group to see if they've seen anything.

Sue

	Dung Tran@ENRON COMMUNICATIONS
	03/20/2001 04:18 PM

		 To: Sue Nord/NA/Enron@Enron
		 cc:
		 Subject: Network Performance and Reliability

Sue,

We're looking at evaluating our network metrics vs. other carriers.  Most of
the information I have found
centers on reach (i.e. miles of fiber, presence, etc.) as opposed ot
performance or reliability.  Has anything
crossed your attention in the Regulatory space that looks at this type of
issue?

Dung


The following meeting has been requested by Mary Gosnell, please plan to
attend:

Topic:  ENA's involvement in EOL issues with other regulated Enron Entities
Date:  Today, October 25th
Time:  11:30 - 12:00pm
Location: EB49C1

Thank you,

Julissa


Transwestern received a Compliance Order from the State of New Mexico, Air
Quality Bureau, for an outstanding turbine replacement activity at the P-1
C/S which occurred in 1996.   Transwestern had met with the AQB over this
issue in 1996 and assumed that the issue had been resolved, as no further
actions were received from the agency until this Compliance Order was
received. The issue in question was Transwestern's replacement of
interchangeable internal components from a 4700 turbine into the existing
smaller turbine (3505).  The larger internal components  (inlet guide
vanes/nozzles) which were placed into the 3505 were mechanically derated to
simulate conditions of the smaller turbine.  When Transwestern received
permit approval from the AQB to operate at the larger turbine capacity,
Transwestern made the upgrade adjustments and then operated at the higher
turbine value 4700.  The AQB did not understand that Transwestern could not
make the adjustments to the inlet guide vanes as any such activity by
Transwestern would void the warranty with Soalr Mfg.  Only Solar is
authorized to make adjustments to the turbine.  This prevents Transwestern
from randomly and arbitrarily manipulating and adjusting horsepowers of this
turbine at their descretion.

In the 1996 meeting with the AQB, Transwestern committed to conducting a
emissions test of the 4700 to determine if emissions were more or less than
the permitted values for the 3505.  It was shown that emissions from the 4700
were less than that permitted by the AQB for the 3505.  It should also be
mentioned that the 3505 was a regerative turbine and the 4700 is a simple
cycle.

  Apparently, EPA has mandated that the AQB act on all issues considered to
be outstanding as determined by the EPA.  Dave Nutt has been sent the
Compliance Order to review.  Under the conditions of the Order, Transwestern
has 30 days to request another hearing.

Id like to have a group discussion to decide how Transwestern will manage and
handle this issue.  Would someone contact Anabelle and have her set up a
conference call for sometime next week?


Kristin,

The problem with this guy is that we maxed out on the number of interns we
can gainfully employ and provide adequate supervision. So, we have to pass on
him.

Vince

	Enron North America Corp.

	From:  Kristin Gandy @ ENRON                           02/16/2001 07:54 AM

To: Stinson Gibner/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Vandy Student

I hear that you have been in contact with this student.  Do you have any
interest in hiring him for a summer position?  If not please just let me know
and I will call him to let him know.

Regards,
Kristin
---------------------- Forwarded by Kristin Gandy/NA/Enron on 02/16/2001
07:49 AM ---------------------------

Dmitri Villevald <Dmitri.Villevald@owen2002.vanderbilt.edu> on 02/15/2001
04:00:51 PM
To: "'kristin.gandy@enron.com'" <kristin.gandy@enron.com>
cc:

Subject:

Dear Ms. Gandy:

Thank you for taking time out of your busy schedule to visit the Owen
Graduate School of Management at Vanderbilt on January 23-24 for on-campus
interviews for the Summer Associate positions at Enron. It was a pleasure
talking with you, and I hope I conveyed to you how excited I am about the
prospect of applying my skills at Enron.

I realize that Enron offers a limited number of positions and greatly
respect your choice of Summer Associates. I would like to ask you if there
is any opportunity for me to work at Enron during this summer for free. I am
confident that my sincere interest in derivatives will allow me to greatly
contribute to Enron during this summer. I am particularly interested in
Enron Research Group. (I had a phone interview with Mr. Gibner on January
31st, and I sent him email yesterday asking for the opportunity to work for
free during this summer).

I am looking forward to hearing from you. If I can provide more information
or answer additional questions, please feel free to contact me either by
telephone (615-496-1132) or via e-mail
(Dmitri.Villevald@owen2002.vanderbilt.edu). Also, I am always ready to fly
to Houston for additional interviews.

Again, thank you for your time and consideration.

Sincerely,
Dmitri Villevald
OWEN MBA 2002


Wed is OK. Tues is bad.


Tana:

Worthington Industries, Inc. is NOT authorized to trade US power products --
restricted by credit.

*******************

Rainbow Energy Marketing Coporation is authorized to trade US power pursuant
to the master EEI contract.

Leslie


no, it was a GTC Firm.  You will need to create a new deal.

Julie

Daren J Farmer
10/17/2000 02:32 PM
To: Julie Meyers/HOU/ECT@ECT
cc:
Subject: meter 5892 South Katy Gas Unit 2- Allocation

JM,

Is the contract for this deal still valid?  I want to roll the deal for Sep
and Oct.

D
---------------------- Forwarded by Daren J Farmer/HOU/ECT on 10/17/2000
02:29 PM ---------------------------

Mark McCoy@ENRON
10/17/2000 01:34 PM
To: Daren J Farmer/HOU/ECT@ECT
cc:
Subject: meter 5892 South Katy Gas Unit 2- Allocation

Daren---

I need some help with meter 5892 for September 00 due to a feedback error.
Deal 133196 (purchase from Duke on gathering contract) is erroring out due to
it's expiration date of 8/31/00......however it still showed up in POPS (w/o
a nom) on 9/1.  Volume management allocated volume to it according to the
allocation statement.  Should this deal be extended?  I noticed it is not out
there for October either.  I have the feedback error sheet & allocation if
you want to see them.

Let me know,

Mark
x33396

p.s. Fred Boas said you used to handle this and you were very wise in the art
of allocation......so I am expecting big results Grasshopper!


Per my conversation with Lisa, I am going to open the referenced counterparty
to trade financial.


In the past we have blessed RAC as a truly corporate function with whom we could share information and receive services.  When I read that there are power trading folks on the RAC team, my radar goes up about the need to put firewalls in place within RAC.
 -----Original Message-----
From: 	Enron Announcements/Corp/Enron@ENRON [mailto:IMCEANOTES-Enron+20Announcements_Corp_Enron+40ENRON@ENRON.com]  On Behalf Of Rick Buy and Mark Haedicke@ENRON
Sent:	Friday, October 05, 2001 12:03 AM
To:	All Enron Worldwide Special@ENRON
Subject:	New Legal Team to Assist RAC

	In order to bring better legal coordination and standardization to Enron's Risk Assessment and Control (RAC) group, we have formed a new legal group, which will initially include Lisa Mellencamp (Finance), Marcus Nettelton (Power Trading), Carol St. Clair (Broadband/Power Trading), Mary Cook (Financial Swaps), Peter Keohane (Canada), Ed Essandoh (Retail), Paul Darmitzel (Retail) and Elizabeth Sager (Power Trading) (Team Leader).  This group will focus on, among other things, managing Enron's exposures with bankrupt counterparties, working out credit solutions with distressed counterparties and standardizing our overall credit practices.  The initial members in this group have been drawn from Enron's numerous legal groups in order to gain a broader perspective.   Each of these members will provide support to this new group in addition to their current responsibilities.

	Within RAC, Michael Tribolet will focus on distressed counterparties, in conjunction with Bill Bradford, who continues to manage the Credit Risk Management group.

	Please join us in supporting the efforts of this new group.


Harbor Cogen called this on Monday night shift at approximately HE 24 stating
that they would be unable to supply their day ahead schedules due to a crack
in an oil supply line.  Mike at Harbor stated that we should not bid in day
ahead schedules for Wednesday either as it appears to be a problem which may
take some time to fix.  To cover the day ahead schedules we looked for power
to cover it in SP however we could not find even an offer during the night
shift.  I would advise Les and whomever is on the day and night shifts on
Tuesday to keep in touch with Harbor regarding this issue.  Thank you for
your attention to this matter and if you should have any questions please
call me on my cell 702-0463


please loop me in on the call w/tim.  thanks.


I have a 1:10 t time for Windrose on Sat.    I have a 3:1 coupon that will reduce the expense to $51 pp + tax.
Let me know if you can go.

JMF


Only couple brief comments on the version that includes Edison's comments:

Under the definition of "Spot Market Service" it now reads:

This service is available for Large Customers and Medium Customers whose service from a Direct Access provider has been interrupted, or who have failed to elect or be deemed to elect either Direct Access, Core Service or Term Service.

I don't understand the meaning of the phrase "or be deemed to elect."  If inserting the phrase serves an important purpose, then perhaps it's appropriate to leave it in.  But we haven't discussed any reason for needing it.  As such, given the last-minute nature of the change, it should be deleted.

There is one heckuvalot of detail in the rate-related language that Edison provided that we didn't have a chance to discuss in our negotiations.  It may turn out that it's all fine, but I frankly haven't haven't had the chance to adequately wrap my meager mind around the language, so I just want to let folks know that many more comments on those pieces may pop up from my end in the near term.
Finally, I just want to raise a flag on section 25465 (a) (6) regarding the green portfolio standard.  We never discussed/analyzed those additional percentages and consequently we never established a "zone of comfort" around including those numbers.  That may become an issue (and may not, just wanted to briefly flag it).

Thanks again for all the effort.

Best,
Jeff


I have attached a final copy of the Media General Confirmation.


Attached is the HB 1777 hand out that Scott mentioned this morning.

Thanks.

Karen Huang
Administrative Assistant
Enron Broadband Services
(503) 886-0396 Desk
(503) 886-0440 Fax
email: karen_huang@enron.net


You may have seen one of these before...
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/27/2001 11:27
AM ---------------------------

Rhonda L Denton@ECT
04/27/2001 10:08 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Long form


A meeting regarding the Terms of Physical Offtake Agreement with the VPP
Facility has
  been scheduled for Monday December 18th at 1:00-2:00 in EB2868.

  Amy
  x37293


Here are companies I've uncovered so far that look like potential competitors
or who offer similar product for specifically the financial industry.

Arcordia
OMR Systems-Back Office Outsourcing
GlobeOp Financial Services - not a competitor, but I like the way they
promote/position their services
Energy Services Group (ESG) - maybe ?
Orcom Solutions

If I uncover more, I'll let you know.


Start Date: 3/8/01; HourAhead hour: 2;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030802.txt

---- Generation Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: WheelSHAST
  MKT_TYPE: 2
  TRANS_DATE: 3/8/01
  UNIT_ID: WSENGY_1_UNIT 4


(See attached file: HPLN0109.xls)

 - HPLN0109.xls


Sara left you a voice mail about this attachment.


will do.

	Vicki Sharp@EES
	12/21/2000 01:01 PM

		 To: Jeff Dasovich/Na/Enron@ENRON, Mike D Smith/HOU/EES@EES
		 cc:
		 Subject: Re: California PUC Decision Info/Update

please change mike smith's email to be mike d smith.  Thanks.

From: Jeff Dasovich@ENRON on 12/21/2000 12:58 PM
Sent by: Jeff Dasovich@ENRON
To: Joseph Alamo/NA/Enron@Enron
cc: Alan Comnes/PDX/ECT@ECT, Dennis Benevides/HOU/EES@EES, Eric
Letke/DUB/EES@EES, George McClellan/HOU/ECT@ECT, Harry
Kingerski/NA/Enron@ENRON, James D Steffes/NA/Enron@ENRON, Jennifer
Rudolph/HOU/EES@EES, Joe Hartsoe/Corp/Enron@ENRON, Kevin
McGowan/Corp/Enron@ENRON, Lisa Yoho/NA/Enron@ENRON, Lysa Akin/PDX/ECT@ECT,
Mary Hain/HOU/ECT@ECT, Michael Smith/ENRON@enronxgate, Mona L
Petrochko/NA/Enron@ENRON, Paul Kaufman/PDX/ECT@ECT, Richard
Shapiro/NA/Enron@ENRON, Roger Yang/SFO/EES@EES, Sandra
McCubbin/NA/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Scott
Stoness/HOU/EES@EES, skean@enron.com, Stuart Staley/LON/ECT@ECT, Susan J
Mara/NA/Enron@ENRON, Vicki Sharp/HOU/EES@EES, Wanda Curry/HOU/EES@EES
Subject: Re: California PUC Decision Info/Update

From the most recent information we have, the most likely outcome appears to
be the following:

As we've discussed this week, the administration and the utilities continue
to have a very difficult time reaching agreement on 1) how much of the
undercollection the IOUs should absorb and how much consumers should absorb
and 2) how big the rate increase should be to manage the IOUs cash
flow/credit  problems (governor wants 10%, IOUs want at least 20%).
It remains likely that the Commission will rule today on relaxing regulations
to make it easier for the IOUs to enter into longer-term contracts w/out
getting 2nd and 3rd guessed by the Commission.
It is likely that the Commission will signal strongly that it will not let
the IOUs go bankrupt but will only go so far as to outline its plan for
considering and implementing a "rate stabilization" plan in Q1 2001.

That said, the stakes are very high and things could change dramatically
between now and 2 PM PST.  Just talked to two SVPs with PG&E and Edison and
they said that they don't know what the Commission will do at 2.

Jeff

	Joseph Alamo
	12/21/2000 12:30 PM

		 To: George McClellan/HOU/ECT@ECT, Kevin McGowan/Corp/Enron@ENRON, Stuart
Staley/LON/ECT@ECT, Lisa Yoho/NA/Enron@Enron, skean@enron.com, Richard
Shapiro/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Sandra
McCubbin/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, James D
Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Wanda
Curry/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES,
Scott Stoness/HOU/EES@EES, Mary Hain/HOU/ECT@ECT, Alan Comnes/PDX/ECT@ECT,
Joe Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Mona L
Petrochko/NA/Enron@Enron, Jennifer Rudolph/HOU/EES@EES, Eric
Letke/DUB/EES@EES, Vicki Sharp/HOU/EES@EES, Michael Smith/ENRON@enronxgate
		 cc: Jeff Dasovich/NA/Enron, Lysa Akin/PDX/ECT@ECT
		 Subject: California PUC Decision Info/Update

On behalf of Jeff Dasovich, please note:

the California PUC decision will be available on
the PUC website @ 1:00 PM PST.

The Commission will continue the meeting @ 2:00 PM PST
to address the issue.

Thanks,

Joseph Alamo
Sr. Admin. Asst.
Government Affairs - The Americas
San Francisco CA


Can you find out this morning the principal place of business and state of
incorporation for TBI Field Services, Inc. and let me know?  Thanks.


Hey!? What's up?? How's your new job  going?? Just wanted to touch base with
you.? How's Jenn?? Michael  & I are doing great, still loving our house!?
There's really nothing  new to speak of.? Anything in your life?? Entertain
me.
?
Amy E. Hood
The Hall Agency
(214) 559-4255
(214) 559-0032 fax
amy@thehallagency.com
??


Please note,

	The Daily Central Desk meeting, which starts @ 1:45 PM, will take place today only in Team Room 5716 (located on the 5th floor.)  Starting tomorrow, this meeting will take place in Team Room 6716 (located on the 6 floor.)

Thank you,
Irena Hogan
Sr. Administrative Assistant
Enron Americas
(713) 853-6143


Hey honey, how was the Men's Club?


Ben was actually already planning on going.  In fact he informed me he would
be bringing a friend from Canada.

FYI - I didn't know there was a "friend" in Canada until very recently
(although I had my suspicions) and further more had never heard a name until
today.  Regardless, any friend of y'alls is a friend of mine.  Also, Nick is
going to bring Amy (his significant other).

Should be an interesting evening.

Wilson Kriegel@ENRON
04/26/2000 04:58 PM
To: Susan M Scott/HOU/ECT@ECT
cc:
Subject: Re: Red Meat

i'll be there on time for a good steak...did you invite Ben?