Stand up, Texas, against California's bullying
Houston Chronicle, 05/24/01

Markets / Your Money Senate Shift to Ripple Across Industries Politics:
Jeffords' decision could broadly affect range of sectors, from drugs and HMOs
to tobacco and energy.
Los Angeles Times, 05/24/01

Brazil asking power users to cut back
Houston Chronicle, 05/24/01

California Official Cites Evidence of Electricity Price Manipulation
KRTBN Knight-Ridder Tribune Business News: Contra Costa Times - Walnut Creek,
California, 05/24/01

Shrugging off energy ties / GOP gubernatorial hopeful downplays his Texas
investments
The San Francisco Chronicle, 05/24/01

India Appoints Nominee To Dabhol Power Dispute Panel
Dow Jones Asian Equities Report, 05/24/01

INDIA: New Delhi aims to help Enron patch up with utility.
Reuters English News Service, 05/24/01

POLAND: ANALYSIS-Central European gas markets head for shake-up.
Reuters English News Service, 05/24/01

India: A 'hurt' Godbole quits, persuaded to stay on
Business Line (The Hindu), 05/24/01

INDIAN GOVT TO ACCEPT PROPOSALS TO SETTLE POWER DISPUTE
Asia Pulse, 05/24/01

Endesa to sell coal-powered plants operated by Electra de Viesgo (Endesa
incluye una mayoria de centrales de carbon en Viesgo antes de venderla)
Expansion, 05/24/01

Is Pawar playing power politics with Enron?
The Economic Times, 05/24/01

Godbole does a Mamata; quits, then back
The Economic Times, 05/24/01

COMPANIES & FINANCE THE AMERICAS: Dynegy on the lookout for deals
Financial Times; May 24, 2001

May 24, 2001
Houston Chronicle
Stand up, Texas, against California's bullying
By JONATHAN WILCOX
LADIES and gentlemen: May I present to you the Hon. Bill Lockyer, attorney
general of the state of California, from the May 22 Wall Street Journal:
"I would love to personally escort (Enron Corp. Chairman Kenneth) Lay to an 8
x 10 cell that he could share with a tattooed dude who says, `Hi, my name is
Spike, honey.' "
When you stop gagging, join me in celebrating Lockyer's crude, lewd and
unsubdued behavior. It has stripped away whatever veneer of respectability
California officials had by virtue of the offices they hold and exposed them
as braggarts and bullies of the first order. But they also wield enormous and
destructive power -- and they intend to use it.
The sooner Texans realize this the better.
As citizens of the state that is home to much of the nation's energy
production, the people of Texas are intimately familiar with the booms and
busts of the oil and natural gas industries. Sometimes, prices are high, new
supply is nigh and willing buyers can only sigh.
Other times, gluts occur, demand fluctuates, competition grows ruthless and
revenues seep out like the last remnants of black crude from a stripper well.
These are the principles of American capitalism, free market forces and the
give-and-take and push-pull that separate this nation's economic capacity
from all others. It is a fundamentally fair system, it has served us
remarkably well and every time we have tampered with it, it has been to our
ultimate detriment.
Witness California's partial "deregulation" of its electricity market.
The Golden State, for all its vanity, pride and preening machismo, actually
knows very little of tough times. Sure, we can handle the occasional
spectacular episode, like an earthquake or wildfire. That's part of the
thrill of living in California.
But when it comes to our economic expectations and their interrelationship
with our desired lifestyle, we only know the California way: more, more often
and with no end in sight.
And if we don't get what we want, when we want it, it's someone else's fault.
In that light, it is no surprise that we are saddled with our current
governor, Gray Davis, and our current law enforcement chief, the
aforementioned Lockyer.
Despite his frequent jittery appearances on national television, Davis is a
politically shrewd man. He may not know which public policy choices are best
for the state's future, but that's not his highest priority.
Item No. 1 on Davis' "To Do" list is to get re-elected next year. But this
has been complicated by the state's year of energy woes, Davis' ineffectual
response and the fact that California is a largely one-party state.
Of California's eight statewide elected offices, seven are held by Democrats,
including Davis and Lockyer. You don't have to be a Delphic oracle to discern
that if Davis gets tossed out, he will take more than a few of his political
brethren with him.
So, as California tiptoes toward its long, hot summer of rolling blackouts
and unprecedented electricity shortages, Davis is busy digging his personal
bomb shelter. He's preparing for the big one, calculating that while the
damage will be great, and the fallout potentially lethal, he and the other
cockroaches, like Lockyer, will survive.
How will they do this? By finding some fall guys to take the rap.
Call it the Texas two-step: First, Davis declares "war" on Texas energy
producers. Next, Lockyer says he expects to file civil charges against
suppliers, with, he hopes, criminal counts to follow.
For a demonstration of how not to deal with Lockyer and other California
aggressors, examine the rejoinder of Mark Palmer, Enron's vice president for
corporate communications. Lockyer's comment about Lay, he said, "is so
counterproductive that it doesn't merit a response."
Wrong. Weak. Ineffective. Decency in the face of demagoguery may be
dignified, but it's little more than an invitation to further abuse and, for
Enron, public villainy.
Enron had a chance to do something corporations under hostile government fire
only dream about: Embarrass, disarm and neutralize a corrupt public official
out to smear their good name.
By challenging Lockyer to either reassess or renounce his remarks, Enron
could have injected common sense and rare truth into a debate that has become
twisted and warped by the tirades of California officials. Best of all, Enron
could have extracted the kind of retraction that would have adorned Lockyer
with the scarlet "A" of contrite politicians: apology.
Lockyer and other state officials may not yet know the ceiling of scorn Enron
will tolerate from them. But they surely know the floor: Joking with
journalists of the pleasure they would take from the arranged assault of
Kennth Lay in a California prison.

Business; Financial Desk
Markets / Your Money Senate Shift to Ripple Across Industries Politics:
Jeffords' decision could broadly affect range of sectors, from drugs and HMOs
to tobacco and energy.
JOSH FRIEDMAN
TIMES STAFF WRITER

05/24/2001
Los Angeles Times
Home Edition
C-1
Copyright 2001 / The Times Mirror Company

The expected defection of Sen. James M. Jeffords of Vermont from the
Republican Party could markedly affect the drug, HMO, defense, credit card
and tobacco industries, money managers and investment analysts said
Wednesday.
"I don't see any upside for the [stock] market. This looks like gridlock of
the worst possible kind," John Carey, manager of the Pioneer Fund, said of
the switch, which would give the Democrats control of the Senate for the
first time since 1995 and increase their ability to slow President Bush's
legislative agenda.
"The market was beginning to feel confident that the regulatory burden on
business would ease," he added, "and there was even hope for
business-friendly legislation. But no longer."
Analysts said the clearest winners in a switch to a Democratic Senate could
be lenders Fannie Mae and Freddie Mac, whose status as government-sponsored
enterprises is expected to remain intact. Both stocks were up strongly
Wednesday despite a weak market.
Still, most analysts said it's unlikely that a change in the balance of
congressional power would lead to what Carey termed "radical anti-business
legislation." And President Bush's income tax cut, passed by both houses and
headed for a conference committee, also is expected to remain intact.
"But I wouldn't expect another tax cut next year, not anymore," said Greg
Valliere, chief political analyst in Charles Schwab's Washington Research
Group. "The Jeffords defection, if it happens, doesn't mean the Bush agenda
is in tatters. It does mean gridlock for a lot of businesses."
Here's how some major industries could be affected:
* Drug makers
A Democratic Senate could produce a public relations nightmare for the
pharmaceutical industry, already under scrutiny over the pricing of some
medications.
"They can apply more heat to the pharmaceutical industry and inflame issues,
such as [supposedly] charging too much for drugs," said Tom Miller, a policy
analyst with Cato Institute, a conservative think tank.
"There's a headline risk. You know, 'Ted Kennedy Holding Hearings on Drug
Companies,' " added Valliere. Kennedy (D-Mass.) is in line to be chairman of
the Senate Health Committee.
Analysts said such tactics aren't likely to result in legislation, given
Republican control of the House.
Still, Andy Laperriere, a political economist at International Strategy &
Investment Group in Washington, said Democratic Senate control at least would
revive the "potential threat of price controls in some form."
* HMOs
Those stocks were hard hit Wednesday, perhaps as investors envisioned
industry critic Kennedy shaping a so-called patient's bill of rights or
Medicare reform.
Still, a power shift could work in Bush's favor if Kennedy and fellow
Democrats were to block administration health-care proposals at every turn,
said Alan Skrainka, chief market strategist at brokerage Edward Jones. The
GOP could end up gaining seats in the midterm election next year, he said, by
campaigning against stonewallers.
* Defense and aerospace
Most analysts said the expected shift would probably have little impact on
the defense industry, even if the leadership changes in the key committees
such as Armed Services and Appropriations, since both sides of the aisle
agree on the need for more defense spending.
But debate over already contentious issues such as missile defense and
whether to restart production on the B-2 Stealth bomber could intensify.
"These would be bones of contention anyway but maybe more so with the
Democrats' added power in the Senate," said Paul H. Nisbet, analyst with JSA
Partners.
Some analysts said defense stocks have run up since last summer on hopes of
increased spending, perhaps leaving them vulnerable.
* Credit card issuers
The bankruptcy reform bill approved by both houses, considered a boon for
major credit card issuers like MBNA and Bank One, could be watered down or
even killed, Laperriere said.
* Energy
Some money managers suggested environmental restrictions pushed by emboldened
Democrats could hinder a variety of energy companies.
"This news is good for the caribou, that's about it," said Pioneer's Carey,
referring to the chances that a Democratic Senate could block efforts to
drill for oil in sensitive arctic areas. "They can breathe easier."
But a Senate shift might not hurt energy companies as much as some expect,
analysts said. If the Democrats use their Senate control to block elements of
the president's new energy plan, it could be a plus for wholesale power
merchants and traders such as Enron, Reliant Energy and Duke Energy, said
Merrill Lynch analyst Donato J. Eassey.
"With gridlock you're going to have uncertainty, and uncertainty causes
volatility, which is good for [traders]," Eassey said.
Bush's plan to open the Arctic National Wildlife Refuge to limited oil and
gas exploration was politically dicey even before the possible Senate change,
several analysts said.
The majority of oil field services firms might actually do better if the
Alaskan proposal failed, according to analyst Poe Fratt of A.G. Edwards. Only
a handful of such companies stand to benefit from development of the wildlife
refuge tract, he said.
If exploration is blocked there, "more companies will benefit from drilling
elsewhere," he said.
* Tobacco
Huge jury verdicts against cigarette makers in recent years "really started
when industry executives got dragged before the Senate," Laperriere said, so
tobacco companies wouldn't look forward to another round of hearings. He
called new hearings "a real possibility" if the Democrats are running the
Senate.
* Fannie and Freddie
Laperriere said the threat of policy changes that would affect regulation of
Fannie Mae and Freddie Mac would be diminished under a Democratic Senate.
He noted that instead of Phil Gramm (R-Texas) leading the Senate Banking
Committee, it would be led by Paul S. Sarbanes (D-Md.), a major supporter of
the popular lending agencies.
* Telecommunications
Some analysts said chances for deregulation--for example, allowing the Baby
Bells fully into the long-distance market--won't survive a power shift in the
Senate.
"There was hope that the Telecommunications Act, which has actually impeded
competition, might be revisited," Carey said. "If this [Jeffords situation]
is bad news for any industry, it's telecom."
But several analysts and investors said the market impact of the Jeffords
defection already has been overblown. "The biggest thing we needed from this
administration was the tax cut, and it looks like we're getting it," said
Robert Nichols, chairman of Windward Capital Management in Los Angeles.
*
Times staff writers Denise Gellene, Thomas Mulligan and Peter Pae contributed
to this report.
RELATED STORIES
Switch: Jeffords has told aides he will quit the GOP today. A1
Markets: Stocks fall as investors mix caution with confidence. C4

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

May 24, 2001
Houston Chronicle
Brazil asking power users to cut back
Officials want to pare consumption by a fifth
Copyright 2001 Houston Chronicle News Services
SAO PAULO, Brazil -- The towering offices of Banco Itau and Microsoft Corp.
in Brazil's financial heartland greeted nightfall with their trademark lights
turned off.
Store owners celebrated astronomic weekend sales of energy-saving lamps.
That's good news as the government asks the nation to chop 20 percent off
energy consumption to avoid widespread blackouts and to haul South America's
biggest country and economy out of a chronic power shortage sparked by
drought.
"We are in the hands of the public. If people manage to economize 20 percent,
the likelihood of blackouts will be very small," said Mauro Arce, Sao Paulo
State energy secretary and member of an anti-crisis task force.
The plan to stave off California-style electricity cuts has borne encouraging
results so far. The program asks consumers, companies and industry to cut
electricity use by 15 percent to 25 percent, with the threat of price
surcharges of 50 percent to 200 percent. But it will come at a cost.
Economists fear rationing and its consequences could knock Brazil's economic
growth to less than 3 percent from expectations of 4 to 4.5 percent.
Government officials only say it will slow the economy but will not predict
how much.
And it may trigger moves by the government to encourage the aggressive power
plant program that has long been needed. Power plant builders, including
companies with big presences in Houston, have delayed plans to build plants
because they fear losses from the risk from local currency devaluations.
Rationing officially begins June 1 across most of Brazil, although its
biggest cities have already dimmed street lighting, and consumers have turned
to candles.
The government estimates it needs to expand the country's generation capacity
by 50 percent, or 31,000 megawatts, by 2008 at a cost of about 33 billion
reais, or $14 billion.
Brazil's power shortage has been hidden over the years by overuse of
reservoirs. The government increased generation in years with good rain by
failing to let the reservoirs fill to capacity. Hydroelectric power is
responsible for about 85 percent of Brazil's generation capacity.
"In the last 40 years there have been plenty of droughts, but we've never
been forced to ration energy," said Lido Luis Sauer, an energy-studies
professor at the University of Sao Paulo.
Reservoirs, the professors said, were often allowed to fill only to 70
percent of capacity. Reduced rainfall has cut the reservoir levels to as low
as 30 percent.
"We're on the verge of trying to generate power with mud," Sauer said. "We've
been warning them for years that this risk exists, but they told us `don't
panic.' "
For now, the power grid here depends on the weather and the cooperation of
the public.
If water levels fall farther, the country may need to cut up to 40 percent of
consumption, Arce said. Rationing is set to last through November, when the
rainy season resumes.
With cooperation and the weather on its side, the energy task force will just
need some understanding from the public.
In an early sign of irritation, Sao Paulo Internet company ATN Internet filed
a lawsuit seeking a judicial ban on power cuts. And Supreme Court President
Marco Aurelio Mello said some of the government's measures violated the
constitution.
"Unfortunately, the filing of injunctions and lawsuits has become a national
sport," said Pedro Parente, head of the task force. "The situation today is
serious. We need this to be understood by the judiciary."
If the public cooperates, Parente said the government could relax some of its
rationing measures. The task force had banned energy contracts for new
commercial or industrial projects.
Brazil's government realizes it has to end the drought in power plant
construction and is considering a program to protect some electricity
utilities from currency risk to attract the $14 billion it needs for new
power plants.
Companies such as AES Corp., Duke Energy Corp. and El Paso Energy Corp. have
delayed or limited expected investment in natural gas-fired generation plants
on concern that government rules limit their ability to pass along increases
in dollar-denominated fuel costs to electricity consumers who are billed in
reais, the local currency.
Devaluations cut the revenues of the power plant builders, but not their
expenses.
"The government hasn't had a policy to attract investment to generation,"
said Frank McGann, an oil analyst with Merrill Lynch & Co. in New York. "An
adjustment in gas prices is a major step forward, which should have been
taken two years ago."
The failure to build plants has come despite natural gas supplies piped in
from Bolivia, Argentina and fields of Brazil's Atlantic coast and a national
"emergency plan" to encourage the building of dozens of new plants to make up
the shortfall.
A new natural gas supply contract with power producers may spur some
much-needed construction.
Under the currency guarantee proposal, which could be adopted as government
policy as early as this week, Petroleo Brasileiro SA, the state-controlled
oil company, which is the lead investor in the country's major pipelines,
would sell gas to generators under a one-year contract with a fixed price in
reais, said Energy Minister Jose Jorge de Vasconcelos Lima.
If the dollar price of gas rose during the contract, Petrobras would charge
the difference to a special account. The generator would pay off that
account, plus interest and Brazilian inflation, by including them as part of
the next one-year, fixed price contract at the same time that the government
raises consumer power rates, a spokeswoman for the Energy Ministry said.
A utility now has to pay Petrobras and other distributors the market rate,
but is limited in the amount of the increase it can pass on to consumers.
With rationing likely to raise distributors' costs -- slashing profits more
-- these companies are reluctant to invest in any new venture, including
generation.
"It has never been decided who will pay for foreign exchange losses in the
gas contracts," said Luiz Maurer, vice president for the Brazilian
association of energy trading companies, as well as head of regulatory
matters for Enron in Latin America.
Enron, for its part, is moving ahead with plans to build about 800 megawatts
of new generation capacity. The move, as well as plans by Petrobras to become
a minority investor in a series of gas-fired plants, is a direct result of
the same problem.
With other companies holding back on generation projects, Enron and other gas
distributors need a market for their natural gas. AES said recently it may
cancel $240 million in investments in three plants.
"If we don't build plants or help others build them, we will be in an even
worse situation," said Ron Vaz Moreira, chief financial officer of Petrobras.
"We won't have any market for our gas."

California Official Cites Evidence of Electricity Price Manipulation
Mike Taugher

05/24/2001
KRTBN Knight-Ridder Tribune Business News: Contra Costa Times - Walnut Creek,
California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

An investigation into electricity prices has turned up evidence that
generators are throttling their power plants up and down to drive up prices,
according to California's top utility regulator.
Loretta Lynch, president of the state Public Utilities Commission, said
Wednesday that an investigation started last year to examine electricity
prices, and which later turned to examine unprecedented numbers of power
plant outages, has found instances where generating units were backed down
until electricity emergencies were declared and then brought back up in such
a way as to maximize profits.
"What we saw was a pattern of individual behavior," Lynch said.
Generators acknowledge that they vary the output from their power plants, but
say they do so for legitimate business reasons. Included among those reasons
is a little-known tactic to insure themselves against breakdowns that would
be limited under a federal order that is to take effect next week.
Although Lynch would not reveal more specifics, her comments, which echoed
revelations she made before a state Senate committee last week in Southern
California, come as accusations, legal threats and rhetoric are all swirling
to a boil.
Earlier this week, Attorney General Bill Lockyer, whose office is working
with the PUC in one of several ongoing electricity market investigations,
reportedly said that he wanted to escort Enron Corp. Chairman Kenneth Lay to
a prison cell "that he could share with a tattooed dude who says, `Hi, my
name is Spike, honey."'
The heated rhetoric and continuing legal threats have infuriated generators,
who continue to trot out figures showing that they are running power plants
harder than ever.
"There's nothing that gets under our skins more than somebody --some
government official -- who is ill-informed making those judgments," said Tom
Williams, a spokesman for Duke Energy, a North Carolina-based company that
owns three major power plants in California and is building a fourth.
Duke generated 50 percent more electricity from those plants last year than
it did the previous year, Williams said. And the company is on track to
generate even more this year, he added.
But Lynch and other state leaders are becoming increasingly hostile in their
remarks about the half- dozen out-of-state power companies that bought
utility-owned power plants in 1998 and 1999 as the state moved to restructure
the electricity industry.
Lynch said state regulators are at least a month away from taking legal
action, but she also said that in addition to looking at power plant outages,
the investigation was looking at patterns in the way power plants are run,
allegedly to influence prices and then capitalize on them.
"There are several ways the generators game the system," she said.
The companies acknowledge they might limit output because of environmental
restrictions and in situations where the cost of running a plant is higher
than the price they could get for electricity at a given point in time.
But there is another reason, too. It is a practice that has troubling
implications because it sets up a situation where the higher prices go, the
more incentive companies have to hold back power.
Documents filed with the Federal Energy Regulatory Commission show that some
companies ease off their units' throttles in order to insure themselves
against the possibility of a breakdown at another unit. Their logic is this:
Energy companies typically sell electricity in advance, so they have an
obligation to provide that electricity to their buyers. If they are running
at 100 percent capacity and a unit breaks down, the company has to scramble
to buy electricity at high, last-minute prices in order to meet its
contractual obligations.
Last summer, for example, a large, 750-megawatt unit at Duke's Moss Landing
power plant broke down, and Duke found itself spending $1.2 million an hour
to meet its contracts.
By holding some of their power-generating capacity in reserve, the companies
can insure themselves against a breakdown somewhere else. And the higher
prices go, the more insurance they might want to keep.
"That is a rationale they are using," said PUC energy division director Paul
Clanon.
Duke, Mirant Corp. and Pacific Gas & Electric were among the companies who
objected to a draft order from federal regulators that would put an end to
the practice of withholding power from the spot-market to cover the
possibility of a breakdown.
In papers that Mirant filed with FERC, the Atlanta-based generator said that
if its ability to withhold power in that way was restricted, then regulators
should allow the company to charge even more for its electricity.
But FERC shot that argument down, saying that although it is reasonable for a
company to not sell all of its electricity ahead of time, there is no reason
to hold back power from the hour-to-hour spot market, as Mirant wanted to do.
The federal commission said that, contrary to Mirant's claims, "the generator
faces no financial risk" if it is forced to sell all its available power on
the spot market.

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

NEWS
Shrugging off energy ties / GOP gubernatorial hopeful downplays his Texas
investments
Carla Marinucci
Chronicle Political Writer

05/24/2001
The San Francisco Chronicle
FINAL
A.3
(Copyright 2001)

Wealthy GOP gubernatorial hopeful Bill Simon Jr., on a campaign stop
addressing California's power crunch yesterday, kicked off his own personal
energy crisis when he confided to an energy executive, "I'm an oil and gas
man from way back."
Simon, son of the late Nixon Treasury Secretary William E. Simon, later
insisted that he misspoke.
But in his first open campaigning in Northern California, the Los Angeles
businessman and philanthropist acknowledged both energy investments and his
role as a former board member of Houston's Hanover Compressor Co. The
publicly traded energy-related firm is a market leader in natural gas
compression and counts among its partners the Texas energy giant Enron.
Simon, who has also invested in educational technologies, Internet firms and,
most recently, South of Market real estate in San Francisco, stressed
yesterday that stocks in energy-related firms are only a small part of his
portfolio.
But ties to a Texas energy firm could negatively affect his first run for
public office in California. A Field Poll released this week showed an
increasing number of Californians holding energy firms responsible for power
shortages.
And, as President Bush prepares to visit the state next week, Texas oil and
gas firms have specifically been the target of Gov. Gray Davis, who asserts
that their hunger for profits accounts for the crisis.
Hanover Compressor, traded on the New York Stock Exchange under the symbol
HC, has 2,700 employees and had an estimated worth of $2.6 billion on April
30, according to a recent financial report.
A 1996 report in Oil and Gas Investor magazine described Hanover as a
fast-growing, profitable innovator in technologies to compress and transport
natural gas. The firm signed a $130 million deal with Enron Capital and Trade
Corporation in 1995, according to the magazine.
Yesterday, Simon insisted that he is not strongly tied to the firm, and said
that if he runs, he will release financial statements showing his holdings.
"I'm not an oil and gas man," Simon told The Chronicle. "Speaking loosely, I
said I have experience in looking at oil and gas investment opportunities.
"I was one of a group. I was on the board for a little bit," he said of his
relation to Hanover. "I still have a small piece. . . . We still have some
ownership of it . . . (but) I'm not active, never really was."
The focus on Simon's energy holdings came as the prospective candidate toured
Lawrence Livermore National Laboratory.
Simon also heard presentations -- and pitches for venture capital - - from
two energy executives: Rick Jeter, who heads X.L. Operating, a Fort Worth,
Texas, oil and gas producer; and Steve Doyle, chief executive of Clean Energy
Systems. As Simon met with them after their presentations, his greeting to
Doyle, overheard by reporters, was, "I'm an oil and gas man from way back."
"Hanover Compression was one company that we started 10 years ago now," he
explained to reporters. "It promotes the efficient use of gas. It helps it
come out of the ground. It helps it be transported. It's good technology.
"We have to continue to focus on these kinds of energy efficiencies," he
said. "This is our way out, ultimately, of the energy crisis."
Asked the extent of his financial interest in that and other energy-related
firms, Simon could not provide specifics. "I'd have to get you those
numbers," he said.
But he said, "We've looked at a broad variety of opportunities in virtually
every industry in the country. Oil and gas is one. . . . I'm not specific to
this industry. I'm an eclectic investor."
On energy issues, Simon said he would be "willing to look at" expanding oil
drilling in California, though he said he was opposed to offshore drilling.
He said he could support "temporary" price caps on the wholesale costs of
energy, but insisted any details would require more study. "You have to know
how urgent the problem is with respect to the supply and balance," he said.
Asked if Davis has been fair in criticizing Texas firms, Simon said, "I think
he ought to quit pointing fingers and start focusing on solutions."
But he said he did not yet have a detailed energy plan, adding, "We're
putting it together right now."
Simon, 50, said he expects to make his announcement about a gubernatorial run
the first week in June.
He told potential volunteers yesterday he would be a "major investor" in his
campaign, but would also raise funds for the estimated $40 million to $60
million needed in a gubernatorial race.
Simon said he is exploring his first political run because "I'm always
interested in being of service. I think here's a place I could be of some
help."
But "the reason I'd like to seek the office of governor, as opposed to
controller or even run for the Assembly, is that's where we have to focus our
attention," he said. "If you have a weak top of the ticket, you have less of
a chance at being elected further down on the ticket. Normally, I'm just
working my way up, paying my dues, but in this situation, I don't know we
have that option."

PHOTO (2); Caption: (1) Bill Simon Jr. listened to a presentation at Lawrence
Livermore National Laboratory while former U.S. Energy Secretary John
Herrington sat behind him., (2) On a campaign swing through Northern
California, Bill Simon Jr. got a lesson in forensic science at Lawrence
Livermore National Laboratory. / Photos by Michael Macor/ The Chronicle

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

India Appoints Nominee To Dabhol Power Dispute Panel

05/24/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

BOMBAY -(Dow Jones)- The Indian government Thursday announced measures,
including the appointment of a retired senior official as its nominee on the
negotiating panel that is sitting with Enron India Pvt. Ltd., to resolve the
Dabhol power supply dispute.
Retired Telecom Secretary A.V. Gokak has been appointed as the government's
nominee on the negotiating panel - set up by the state government of
Maharashtra - that's made up of state and federal government officials and
officers of Maharashtra State Electricity Board, or MSEB.
The long-standing dispute is over power tariffs on electricity generated from
a plant of the Dabhol Power Co., the Indian unit of U.S.-based Enron Corp.
(ENE). The plant that will generate 1,444 megawatts of power when the second
phase is completed later this year is India's biggest foreign investment to
date at $3 billion.
In a further move Thursday, New Delhi has set up a committee of senior
officers from various ministries to examine any proposals that might emerge
from the negotiating panel.
The panel was set up after last month's delivery to Maharashtra government of
the Godbole Report, a 198-page document prepared by a five-member team headed
by former federal home secretary, Madhav Godbole.
A key recommendation of the report included the renegotiation of a power
purchase agreement between the Dabhol Power Co. and the MSEB.
The negotiating panel was due to meet Wednesday for a second round of talks
with senior executives of the DPC but was cancelled after Godbole resigned
over criticism levelled by leader of the National Congress Party Sharad Pawar
that implied the panel had negative attitudes. Godbole subsequently withdrew
his resignation.
A further meeting has been scheduled Tuesday.
Meanwhile, federal Minister of Power Suresh Prabhu confirmed Thursday that
the Indian government is ready to consider any worthwhile idea emerging from
the negotiating panel.
- By Steve Percy, Dow Jones Newswires, 91 22 2884211; steve.percy@dowjones.com

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

INDIA: New Delhi aims to help Enron patch up with utility.

05/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, May 24 (Reuters) - India's federal government will help Enron Corp
and Maharashtra state resolve their wrangle over the U.S. energy giant's
troubled $2.9-billion power project, an official statement said on Thursday.
Dabhol Power Co, 65 percent owned by Enron, and the Maharashtra State
Electricity Board (MSEB) have been embroiled in a dispute over payments for
six months.
The dispute provoked the Houston-based Enron Corp to issue a preliminary
notice last week to terminate its contract to sell power to the utility.
"The government of India will assist in the implementation of any agreed
proposals, which have the support of the concerned parties," the statement
said.
The federal government has nominated a representative in the state's panel
negotiating with Enron.
Another committee of senior officials has been set up in New Delhi to assess
the outcome of the negotiations, the statement said.
"The (junior) power minister, Suresh Prabhu, has confirmed that the
government of India is ready to consider any worthwhile idea emerging out of
the negotiating committee for the settlement of the dispute."
The statement said the federal government wanted the state to resolve the
dispute.
"The government of India is of the view that a quick settlement of the
dispute is essential for the power sector of Maharashtra."
The 2,184-MW power project was regarded as a test case of India's plans to
encourage private investment in the power sector.
The first phase of 740 MW of the project is up and running, while the second
phase of 1,444 MW is slated to be completed next month.

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

POLAND: ANALYSIS-Central European gas markets head for shake-up.
By Marta Karpinska

05/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

WARSAW, May 24 (Reuters) - Central Europe's gas market is heading for a
shake-up as Poland nears the go-ahead for a disputed transit pipeline and the
neighbouring Slovak and Czech republics launch key sector sell-offs, analysts
say.
The Polish government plans to examine an industry-backed proposal for a gas
link connecting Belarus and Slovakia-based transit systems which would carry
fresh Russian supplies to western Europe.
"The recommended route is not the worst possible, and I do not rule out that
the cabinet will approve it, although we may need some small adjustments,"
Economy Minister Janusz Steinhoff told reporters on Wednesday.
Russian Prime Minister Mikhail Kasyanov, who arrives later on Thursday in
Warsaw for a three-day visit, is due to meet Economy Ministry officials and
is expected to try to talk up the Russia-favoured pipeline project.
The decision - which could terminate an alternative plan by Russia's giant
Gazprom to lay a more pricey pipeline along the bed of the Baltic Sea - may
affect a key gas sell-off pending in neighbouring Slovakia, analysts said.
"Gazprom is very interested in the region, particularly in the Slovak transit
system, but its decision will partly depend on whether the new transit will
run across Poland," said Evgeny Solovyov, sector analyst at SG Securities in
London.
SLOVAK TRUMP CARD
Analysts say the sale of the Slovak SPP gas group, including a powerful and
highly lucrative gas transit system, is sure to attract heavy investor
interest and become the largest ever sale in the country.
"The national businesses in central Europe are all like individual pieces of
one puzzle, and Slovakia's SPP is the most important piece of that picture,"
said Bidzina Bejuashvili, oil and gas analyst at Raiffeisen Zentralbank in
London.
Last year SPP shipped almost 90 billion cubic metres (bcm) of Russian natural
gas to western Europe, making Slovakia the top cross-region gas transit
route.
The state wants to sell 49 percent of SPP - also a gas distribution and
transportation monopoly - all of which will likely go to a strategic
investor. A rough price tag put by analysts on the entire SPP varies from $2
billion to $8 billion.
So far, Gazprom and a consortium of Ruhrgas, Gaz de France PR and Italy's
Snam - a gas distribution arm of Eni - have expressed interest in acquiring
the stake.
Germany's RWE Gas and Wintershall have also said recently they would jointly
bid for the gas group.
The German consortium said it would bid too for SPP's neighbour, Czech gas
import monopoly Transgas, which the government wants to sell with eight gas
distributors, in a sale which attracted 14 preliminary bids earlier this
week.
"Czech and Slovak national markets are simply too small, and whoever pursues
the respective gas assets is likely to be looking for their transit pipelines
connecting Russian supplies and western consumers," said Bejuashvili.
POLISH LINK
Analysts say that Gazprom, Snam, Gaz de France, as well as Ruhrgas and
Wintershall - all involved in a consortium to build the Polish transit link -
will likely be the frontrunners in the regional gas asset acquisitions.
The consortium is now carrying out a feasibility study on a powerful transit
pipeline route running mostly along Poland's eastern border, but avoiding
most of its eastern national parks, due to link Belarussian and Slovak
pipelines.
Poland had initially opposed the transit project fearing the new volumes
would be complemented with Russian gas from the pipelines of its strategic
ally, Ukraine. But it has surrendered to pressure from both its commercial
partners and the European Union - which it is negotiating to join.
The government had hoped the new pipeline, likely to replace a previously
planned second stretch of the existing east-west Yamal pipeline running
across Poland, would be used to supply some Russian gas imports to its
industrial southwest.
The Yamal pipeline, which now has a capacity of 18 billion cubic metres (bcm)
per year, needs $350 million for three compressor stations to boost its
capacity to a planned 32 bcm.
POLISH POTENTIAL
Analysts said that Poland's 39-million-consumer market and relatively low gas
usage - only 8.5 percent of total primary fuel consumption - make the
domestic gas market growth potential much higher than that of its neighbours.
"It is quite reasonable to assume that Polish gas consumption will grow at a
faster pace than its economic growth in coming years," said Solovyov.
Poland's gas monopoly PGNiG expects last year's consumption of 10.9 bcm to
grow by five percent per year over the next three years to reach almost 13
bcm by 2003.
The government's long-range forecast - which a lot of analysts say is too
high - sees annual gas consumption up to 18.4 billion cubic metres by 2010.
In a highly disputed plan the Polish government wants to sign a long-term
agreement with Norway later this year which would enable it to diversify from
its currently mainly Russian gas supplies, and boost import volumes by 5 bcm
as of 2007.
"There is absolutely no guarantee the consumption will grow as expected, and
signing a new long-term contract may result in PGNiG being highly
overcontracted," the head of Enron Polska, Jaroslaw Astramowicz, told a
recent industry seminar in Warsaw.
Poland already has a 25-year deal with Russia under which it must buy up to
14 bcm annually, and analysts warn that a new long-term deal may seriously
dent the financial standing of Polish gas distribution firms ahead of their
planned sell-off.
Poland does not plan to start selling its four gas distributors until next
year, but analysts say that September general elections, strongly tipped to
be won by the opposition social democrats, may delay those plans further.

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

India: A 'hurt' Godbole quits, persuaded to stay on

05/24/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 23. DR MADHAV Godbole, Chairman of the Enron renegotiation panel,
resigned this morning but the Maharashtra Government persuaded him to stay
back and continue the renegotiation process with Enron. Dr Godbole withdrew
his resignation in the evening. The second meeting of the panel which was
scheduled for today with Enron representatives did not take place because of
the Chairman's resignation.
When contacted, Dr Godbole said: "I am withdrawing my resignation in the
light of the Chief Minister's letter to me in which the Cabinet has
unanimously asked me to take back my resignation. They have placed complete
faith in me and the committee. The Cabinet has asked me to carry on with the
complex and onerous task of negotiating with Dabhol Power Company."
Dr Godbole also said he had received calls from different political parties
and various other organisations asking him to reconsider the decision to
quit. He considered it a vote of their confidence in the committee and its
working.
Dr Godbole had quit in reaction to "derogatory remarks" made by the
Nationalist Congress Party (NCP) leader, Mr Sharad Pawar.
Last night, Mr Pawar had reportedly made a statement saying he was
"apprehensive of the outcome of discussions with Enron as those leading the
talks from the Government's side are working with a negative approach".
Dr Godbole submitted his resignation to the Chief Minister saying he was
"hurt" by Mr Pawar's statement. The NCP is one of the leading partners in
Maharashtra's Government.
"We will try and clear this misunderstanding. He (Godbole) has been appointed
by the State Government. And the Government has no doubt about the
committee's working. We want him to continue on the panel," Mr Chhagan
Bhujbal, Deputy Chief Minister and NCP leader, said.
- Our Bureau

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

INDIAN GOVT TO ACCEPT PROPOSALS TO SETTLE POWER DISPUTE

05/24/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, May 24 Asia Pulse - The federal government will accept
recommendations of the renegotiating committee headed by the Madhav Godbole
for the settlement of the dispute between Dabhol Power Company (DPC) and the
Maharashtra State Electricity Board (MSEB).
A government statement quoted Power Minister Suresh Prabhu as saying, "The
Government of India is ready to consider any worthwile idea emerging out of
the renegotiating committee for the settlement of the dispute."
The proposal, Prabhu said, has to be acceptable to the parties to the dispute
- MSEB and Enron-promoted DPC - adding that a quick settlement of the
differences was essential for the power sector of Maharashtra.
DPC had last week slapped a preliminary termination notice (PTN) on MSEB
following the dispute over payment of power bills.
While former telecom secretary, A V Gokak, has been appointed as the federal
government's nominee on the Godbole Committee constituted by the Maharashtra
Government, a committee of senior officers of the concerned ministries has
been set up to quickly examine the proposals emerging out of the negotiating
committee, the statement said.
The committee officers comprise officials of Ministries of Finance, Power and
Petroleum.
(PTI) 24-05 2000

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

Endesa to sell coal-powered plants operated by Electra de Viesgo (Endesa
incluye una mayoria de centrales de carbon en Viesgo antes de venderla)

05/24/2001
Expansion
Copyright(C) 2001 Abstracted from Expansion in Spanish, Source: World
Reporter (TM)

Endesa, the Spanish electricity company, has decided which assets to sell and
it will auction its Electra de Viesgo subsidiary, which has 560,000 clients
in the Cantabria region. This company has 2,610MW of generation assets and 36
per cent of its plants are coal powered. Electra de Viesgo is estimated to be
worth over 2bn euros (Pta332bn). Endesa is carrying out the sale in order to
raise funds which will finance operations in other European countries and it
has invited European and US energy companies to the auction. These include
Hidrocantabrico, of Spain; Eon and RWE, of Germany, and Enron and AES, of the
US. The winner will gain 3 per cent of the Spanish electricity distribution
market and 5 per cent of the generation market.
Hidrocantabrico is regarded as the favourite to acquire Electra de Viesgo.
Its market, Cantabria, borders Asturias and the cost of integrating the two
companies will enable it to make a higher offer than its rivals. However,
Hidrocantabrico's complicated shareholder situation (EDP, EnBW, CajAstur and
Ferroatlantica have to agree on the company's management), may be a
hindrance. In order to carry out the sale, Endesa will transfer a series of
power plants located throughout Spain to its subsidiary. These plants will
represent a quarter of the generation assets to be sold by Endesa. The
decision to sell follows Endesa's failed merger attempt with Iberdrola and
will enable the company to invest without increasing its debts. According to
market sources, Endesa may resume plans to merge with Iberdrola following the
sale.

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

Is Pawar playing power politics with Enron?
Girish Kuber

05/24/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

MAHARASHTRA'S former chief minister Sharad Pawar's statement criticising
Madhav Godbole, the head of the renegotiation team, and the timing chosen by
him to air his views, has focused attention on his role in the Enron
controversy.
Pawar, who had first inked the Enron deal as the chief minister of
Maharashtra in 1992, was at the center of controversy when the Opposition
accused him of "favouring" the US energy giant.
The issue of Rs 64 crore being spent by Enron on "educating" Indians had
become a political issue in the 1995 state Assembly elections which Pawar
lost.
In more recent times, Pawar has repeatedly intervened at crucial junctures.
On the eve of Wednesday's session of the Godbole panel, Pawar criticised
Godbole of having " a negative attitude" about Enron. Though Pawar did not
name Godbole, the message was loud and clear.
His statement comes at a time when the Maharashtra State Electricity is
planning to issue a pre termination notice to Enron after the Godbole panel's
scheduled meet on Wednesday.
The board officials had discussed the issue with the state's advocate-general
and were believed to have received a go-ahead from chief minister Vilasrao
Deshmukh.
Last October, when the state government had decided not to pay Enron's bills,
Pawar convinced the state government to release Enron payments. It was after
his intervention that the state government decided to appoint a committee to
review the project.
Surprisingly, last month, when Deshmukh had a meeting with Yashwant Sinha and
Suresh Prabhu at Delhi, Pawar was seen accompanying the chief minister though
his name did not figure on the official list of invitees.
However, subsequently, the committee could not be formed since the faction
loyal to Pawar in the state government was clearly against Godbole's
appointment.
State energy minister and Pawar's trusted aide, Padmasinh Patil, had publicly
expressed his ire against Godbole. It was only after the Janata Dal, Peasents
and Workers Party, CPI (M) and other anti-Enron groups threatened to withdraw
support of the government, the Godbole Committee came into being. But not
bofore a month was lost in a wrangling. Even after the committee's formation,
Patil continued his tirade against Godbole.
It was only chief minister Deshmukh's support that the Godbole Committee
could survive the opposition from within. Political observers believe that it
was the Congress' strategy to support the Godbole Committee that at the end
could expose the wrongdoings of the earlier governments.
As expected, the Godbole Committee, in its first report, exposed what it
called the "lack of governance at every stage" in finalising the Enron deal.
Godbole even suggested a judicial probe to pin those guilty for this "faulty
deal".
It was against this backdrop that Pawar's views on Godbole created a flutter
on Wednesday. Although Godbole withdrew his resignation, it has certainly
widened the rift between the NCP and Congress.

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

Godbole does a Mamata; quits, then back
Our Bureau

05/24/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

IT'S not a comparison that springs naturally to mind. But Madhav Godbole, the
former home secretary in charge of renegotiations with Enron, on Wednesday
managed a passable imitation of Mamata Banerjee by resigning in the morning
and withdrawing his resignation later in the day.
In a day marked by considerable drama that briefly threatened the
renegotiation process with Enron, Godbole decided not to press for his
resignation after chief minister Vilasrao Deshmukh personally expressed "full
faith and confidence" in his ability to "handle the complex and onerous task
of renegotiation".
Earlier in the day, Godbole, who took offence to former chief minister Sharad
Pawar's "derogatory" remarks, decided to walk out of the panel.
Pawar had last on Tuesday night said he was doubtful about the outcome of the
ongoing renegotiations between the state and DPC as those heading the state
government's panel did have a positive approach to resolve the issue.
Godbole's swift decision to quit the panel sent shock waves at the Mantralaya
-- headquarters of the state government -- as it seemed to threaten the
existence of the government.
The Janata Dal, Peasants and Workers Party and other splinter groups went to
the extent of saying they would pull out of the nine-party coalition if
Godbole's resignation was accepted.
Following these development, the state government had to cancel the crucial
second round of renegotiations with DPC slated for Wednesday. Enron and the
Centre's representative were to attend the meet.
"I have resigned due to the derogatory remarks made against me by Sharad
Pawar last night," Godbole said on Wednesday morning.
Godbole said instead of strengthening the negotiator's hands, such statements
"loosen the concerned authority's grip over the fragile situation".
However, chief minister Vilasrao Deshumukh appealed to him to reconsider his
decision. "Godbole's in-depth knowledge and experience makes him
indispensable for handling vexed issues such as renegotiation with the US
energy giant," Deshmukh said.
Deshmukh, after the Cabinet meet, sent a letter to Godbole expressing full
confidence in him. "Godbole should not respond to statements from those
outside the government," said Deshmukh.
Meanwhile, Pawar, too, tried to control the damage. "It was my personal
opinion that was not aimed at any particular person. Godbole should not have
resigned. He should complete his task."
Interestingly, Chagan Bhujbal, the state's deputy chief minister, was put on
a re-fighting mission and asked to express faith in Godbole on behalf of the
NCP, led by Pawar.
Later in the evening Godbole decided not to press for the resignation. "I
have received a letter from the chief minister expressing full confidence in
my abilities. It also states the views expressed by Sharad Pawar were his
personal views. He has said the state government had appointed me and they
had no complaints against me. I, therefore, see no reason to press for my
resignation," Godbole said.
Meanwhile, the next meeting of the renegotiating panel has been convened on
May 29.

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

		COMPANIES & FINANCE THE AMERICAS: Dynegy on the lookout for deals
Financial Times; May 24, 2001
By JULIE EARLE

		Dynegy, the US gas and electricity supplier, has told analysts it will make
large imminent acquisitions or mergers in the US and overseas.
		The company told analysts at a conference in Texas on Tuesday that it was
keen to make mergers and acquisitions in the near future.
		The deals could include generation assets, gas pipeline and storage
infrastructure, entire utilities and communication assets. Dynegy's customers
are in North America, the UK and elsewhere in Europe.
		Dynegy, which is Houston-based, was tight-lipped yesterday about any possible
deals, saying only that it was "always looking for opportunities to enhance
shareholder value".
		The company told analysts it had an active oil, liquids, gas and power group
fully integrated with its US operations, and was "poised to exploit
opportunities".
		It said it would like to own more European assets, but added that prices
remained high, despite an oversupplied market.
		Jay Yannello, an analyst for UBS Warburg in New York, said Dynegy could
leverage aggressively any assets within its network infrastructure.
		"We would not rule out substantial transactions," he said.
		Dynegy told analysts it was looking for 10 per cent of the US power market
and an ongoing 15 per cent share of the US gas market.
		Dynegy and its competitors, including Enron and El Paso, have been recording
big profits in the past two quarters, and and have come under fire from
regulators over the California power crisis.
		Copyright: The Financial Times Limited


Hello Team,

Please add one more Georgetown MBA to your list for SuperSaturday.  The candidates info is:

Jennifer Yi-Ling Lin		yjl2@georgetown.edu		703-528-4793

She was interviewed by our team at the Black MBA Conference and it was determined that she should come down for Supersaturday.  If you could treat her as a campus recruit, it would be greatly appreciated.  I will forward her resume.

Thanks -=- Paul L.


you getting on call w/rob bradley?  jeff


Mark:
Who should handle this?  Given my situation, I would prefer not to take this
on and I have talked to Seth about my situation.  Please let me know what you
think.  Would this be something that Lou Stoler would work on with our help?
Carol
----- Forwarded by Carol St Clair/HOU/ECT on 07/10/2000 02:45 PM -----

	Seth Hurwitz@ENRON
	07/06/2000 12:11 PM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc:
		 Subject: sorema structure

Carol, I'd like to speak with you regarding the following structure proposed
by Sorema, which address the fact that they can't sell/buy derivatives and
can't reinsure any contract governed by NY law.  The credit issue
remains--they propose solving it by means of an assignment clause.

Sorema did six deals with us last year using Palladium.

Seth
x37487
---------------------- Forwarded by Seth Hurwitz/Corp/Enron on 07/06/2000
12:12 PM ---------------------------

inouar@soremagrp.com on 07/06/2000 10:29:19 AM
To: seth.hurwitz@enron.com
cc:

Subject: sorema structure

PLease find attached an explanation of the structure we are looking at.

Idriss.

(See attached file: Weather Derivatives Reinsurance.doc)

 - Weather Derivatives Reinsurance.doc


There will be a meeting to discuss unfinished PRC matters for ENA Legal on
Monday, June 19, at 9:30 a.m. (immediately following the regularly scheduled
OGC meeting) in conference room EB38C2.  This should take approximately 30
minutes.


Start Date: 1/19/02; HourAhead hour: 21;  HourAhead schedule download failed. Manual intervention required.

    LOG MESSAGES:

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-----Original Message-----
From: 	Rust, Bill
Sent:	Monday, January 28, 2002 10:51 AM
To:	Fitzpatrick, Amy
Subject:	Bill Rust and UBS Offer

Amy,

I have decided not to accept the offer of employment from UBS. If you need to contact me, you may call me at home 281-225-9272 or at rust@entouchonline.net

Thank you,
Bill Rust


FYI, just wanted to make sure you and your team were aware of the outage.  Pete Davis and Dave Poston can answer any questions you may have.

-----Original Message-----
From: Glatz, Michael [mailto:MGlatz@caiso.com]
Sent: Monday, July 09, 2001 11:09 AM
To: CRCommunications; ISO Market Operations Group; Market Status
Cc: TSWG
Subject: RE: CAISO Urgent Notice - SI Servers UNAVAILABLE, MONDAY July
9th, 2001 (14:18 to 14:55pst) REMINDER

REMINDER

> -----Original Message-----
> From:	CRCommunications
> Sent:	Friday, July 06, 2001 6:55 PM
> To:	ISO Market Operations Group; Market Status
> Cc:	TSWG
> Subject:	CAISO Urgent Notice - SI Servers  UNAVAILABLE, MONDAY July
> 9th, 2001 (14:18 to 14:55pst)
>
> 		ISO Market Participants
> 		Market Status Distribution
> 		** URGENT NOTIFICATION:  SI Servers  UNAVAILABLE, MONDAY
> July 9th, 2001 (14:18 to 14:55pst) as we will be DEPLOYING THE NEW SI
> RELEASE FOR OASIS REDESIGN COMPLETION.
>
> 		Please submit all Hour Ahead schedules for July 9th  HE ,
> 1800 and 1900 and Supplemental Energy schedules for, 1700 and 1800 prior
> to 1400pst.
>
> 		Once the SI system is available, Please point your
> web-browsers to our Primary server in Folsom by utilizing the following
> URL: https://iso_si/iso .    Also, please be advised that you should clear
> the Netscape cache, close all open Netscape windows, and re-start
> Netscape, before attempting to log onto the primary site.
>
>
> 		Please contact Ginger Seitles (916) 351-4420 or
> gseitles@caiso.com if you have any questions or concerns.
>
> 		Thank you,
> 		ISO Market Operations
>


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Kuwaiti Oil Minister Offers to Step Down  Kuwaiti members of parliament have called for the resignation of the entire govern! ment following last week's explosion at an oil plant where four workers were killed and sixteen were injured.  Unocal Secures OPIC Funds  OPIC will be providing support of up to $350 million in OPIC financing for two of Unocal's offshore oil and natural gas projects in Indonesia.   PDVSA Begins 3 Year Offshore Exploration Program  PDVSA's justlaunched a three-year, $375 million offshore natural gas exploration program in the Atlantic near the Deltana platform area.  Transocean Sedco Forex Announces 2001 Results  Transocean Sedco Forex Inc. reported a fourth-quarter profit after one-time charges pushed it to a loss in the same period of 2000.  Gulf Marine Wins Matterhorn TLP Topsides Project !  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The attached article appeared in today's San Diego Union. I now have the
official transcript from the Senate hearing of May 18 if you need that. If
you are scheduling a conf call for tomorrow, can you do it after 12 your time
as I am flying to San Francisco and will then be in the Brobeck offices.
Thanks

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Content-Transfer-Encoding: quoted-printable
Date: Wed, 06 Jun 2001 08:53:28 -0700
From: "Cindy Frederick" <cfred@pkns.com>
To: "Michael Kirby" <mlk@pkns.com>
Subject: IS TRADING AN INSIDER'S GAME?
Mime-Version: 1.0
Content-Type: text/plain; charset="us-ascii"
Content-Disposition: inline

IS TRADING AN INSIDER'S GAME?
Buying, selling of electricity is a growth business, but some say deck is
stacked against consumers

By Craig D. Rose
STAFF WRITER

June 6, 2001

While Californians decry deregulation's failure to deliver a competitive
market, electricity wholesalers have quietly developed a vast and rapidly
growing business of buying and selling power among themselves.

The deals take place on high-tech trading floors in Houston and elsewhere
around the country, as well as on Internet-based trading systems.

Some experts say this electricity trading is a key mechanism for raising
consumer power prices, yet it's largely unregulated.

"Electricity trading is like buying stock -- when you have ability to change
the stock price," said Frank Wolak, a Stanford University economics professor
and member of the state grid operator's market surveillance group.

Energy companies say the buying and selling of contracts to deliver power
provides risk management, allowing plant owners to presell their electricity,
lock in prices and avoid fluctuations. The rough and tumble of the free
market, they add, is the most efficient means of allocating a resource like
electricity.

But industry critics say trading is far from a competitive market paradigm.
In their view, it's a means of communication -- a way for energy insiders to
collude and raise prices under the guise of competition.

To be sure, the trading arms of major energy companies have emerged as stars
in an industry where profit surges of 300 percent or 400 percent are not
uncommon.

The transactions, shrouded in secrecy, can leave ownership of a critical
commodity in unknown hands. Consider the case of power generated by AES
Corp.'s California plants.

In 1998, AES made a bold move. Immediately after purchasing power plants that
gave it control of 10 percent of the state's electric generating capacity,
the company sold the output from its plants for the next 20 years to Williams
Cos.

Williams did not sit on this treasure trove of electrons. The Tulsa, Okla.,
company soon sold 80 percent of what it bought.

It is difficult to say who owns that power now. Some might be owned by Sempra
Trading, a sister company of SDG&E. Or some could be owned by Enron Corp.,
the nation's biggest electricity trader.

A spokeswoman for Williams conceded that Williams itself may have repurchased
some of the electricity it sold earlier. But trading companies closely guard
their positions.

This much can be said with certainty: Electricity that AES sold for less than
5 cents per kilowatt-hour to Williams changed hands perhaps 10 times in the
wholesale market and emerged at times in recent months with a price tag for
consumers that was 300 percent higher.

Williams' trading profits increased by 523 percent in the first quarter this
year.

Advance sales
All this buying and selling creates curious confluences.
In their attempt to deflect criticism over high prices, generating companies
such as Duke Energy -- operator of the South Bay Power Plant in Chula and
others in the state -- frequently note that they sell most of their
electricity far in advance. But they acknowledge less often that their
trading units may also be buying power, which could boost the company's
electricity inventory.

Duke was the fourth biggest electricity trader last year and cited its
trading activity as a prime contributor to its wholesale business profits,
which soared 324 percent in the first quarter to $348 million.

It is a company's power traders who frequently direct plant operators to
increase or decrease the generation of power in response to market conditions.

Energy companies have little option but to turn to trading for profits. One
of the better kept secrets of electrical deregulation and its promise of
competition is that there is remarkably little competition in the production
side of the business.

For one thing, electricity is a commodity; power from one company is
indistinguishable from that generated by others.

More important, nearly all modern plants generate power from turbines built
by a handful of manufacturers. The result? Modern plants owned by different
companies produce power at nearly identical cost.

"The cost of power produced by modern plants is all within a mil
(one-thousandth of a dollar)," said Michael Peevey, an adviser to Gov. Gray
Davis and former president of Southern California Edison.

So the extraction of profit in the electricity business relies much more on
trading. Traders' profits rise when prices are volatile -- plunging, or even
better, rising sharply.

Little regulation
But despite the obvious temptation to manipulate the market, the burgeoning
electricity trading business has remained largely unregulated.
The Federal Energy Regulatory Commission does require quarterly filings from
energy traders, but these often provide incomplete information, or at least
little that has been of concern to FERC.

In fact, although the trading of electricity grew more than a hundredfold
from 1996 to 2000, FERC has taken no major enforcement action against a
trader. After the onset of the California crisis last year, FERC has acted
once. That was against Williams, which agreed to pay $8 million without
admitting guilt to resolve an allegation that it withheld supply to pump up
prices.

FERC's record of enforcement in the area of power trading stands in contrast
to a long list of enforcement actions within other markets taken by the
Securities Exchange Commission and the Commodity Futures Trading Commission.

FERC has recently added staff to its market oversight operations. But William
Massey, a FERC commissioner, says the agency's effort is still inadequate.

"Electricity can be flipped, stripped and chopped up," Massey said. "It's an
extraordinarily complicated market.

"The sophisticated marketers and traders have simply moved past us. We're
kind of horse and buggy in our approach and they're out there in rocket ships
flying around ... The problem is that sophisticated traders don't necessarily
produce reasonable prices. They produce profits."

Before deregulation, electricity trading was a low-key affair. Regulated
utilities dealt power back and forth on a reciprocal basis to fill
electricity shortfalls in their control areas. There was little trading for
profit until the mid-1990s, after federal legislation and FERC rulings opened
the market.

Major traders include large energy companies, sister companies of
California's major utilities and Wall Street firms.

Market volatility
In many ways, the trading of power is similar to that of other commodities.
But there are important differences. Because it cannot be stored and its use
is so fundamental, the price of electricity is the most volatile of all.
When supplies are tight, a single supplier can rapidly raise prices to
budget-busting levels, as evidenced by Duke Energy's recent admission that it
charged California nearly $4,000 for a megawatt-hour of power, a quantity
that probably sold hours earlier for one-tenth of that sum or less.

Wolak, the Stanford economist, and state Sen. Joseph Dunn, D-Garden Grove,
who is investigating the state power market, say trading allows companies to
collude under the guise of competition. Instead of wringing out lowest costs,
the wholesale trading market serves to raise prices, they say.

"As I trade to you and you trade to me, we communicate to each other what
price we would like to get," said Wolak. "It's not collusive. It's just
communicating price."

Mark Palmer, a spokesman for Enron, the nation's biggest power trader, said
California's problem is not the result of trading.

"It's a result of shortages," Palmer said.

Underscoring its emphasis on trading, Enron's new headquarters tower in
downtown Houston rises from a six-story block of new trading floors,
including expanded space for electricity trading.

Enron also pioneered trading in cyberspace and its Enron Online site claims
to be the most active computer-based trading market.

The Houston company argues that consumers won't fully benefit from power
trading and deregulation until they have greater choice in choosing their
power supplier. And the company says FERC has not done enough to open access
to transmission lines, which would allow traders to move power around the
country. To that end, Enron has lobbied hard for President Bush's plan for a
national electricity grid.

Palmer says the notion that the price of electricity rises each time it is
traded is mistaken.

"The market is always looking for the real price of a commodity," Palmer said.

Dunn, the California state senator, says his investigation found a different
function for trading. At a time when supply barely meets or falls short of
demand, he noted, companies with electricity to sell have to worry only about
how high to set their price.

"The trader is a pawn in the generator's game to drive up prices," said Dunn.
"Trading develops a level of trust. You, my alleged competitor, will bid in
the same patterns and I will respond not in a competitive pattern but in a
complimentary pattern."

The state senator said his investigation found evidence that on several days,
energy companies appeared to test their ability to drive prices up, without
being undercut by competitors.

This ability to drive up prices without competitive consequence is a key test
of market power, the technical term for manipulation or price fixing.

But Dunn also conceded that antitrust violations can be hard to prove in
court. He suggested that even if the trading behavior falls short of
antitrust violations, it remains anti-competitive and devastating for the
California economy.

To Harry Trebing, a utility industry expert and professor emeritus at
Michigan State University, wholesale electricity trading is reminiscent of
what took place in the 1920s and early '30s. Back then, utility companies
created complex networks of holding companies that traded stock among
themselves, driving up prices in the process.

Undoing that scheme was a focus of President Franklin Roosevelt's
administration. Congress ended up barring national power companies and
tightening regulation of utilities, in an effort to counteract their tendency
to create markets that work only for insiders.

"The broad goals of trading are the same," Trebing said.

"The goal is to maximize profits through raising prices."


Please take me off your distribution list for monthly close contacts.

Thanks

Tracy Geaccone


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Rick

I thought I would give you an update on what I am doing from a systems
perspective.  I'm trying to get a systems plan together from Beth.  We simple
do not have one.  From there I will coordinate with traders and back office
to try to create a plan that everyone can by off on.  My new motto is
"Systems will be fixed or people will die".  I will keep you informed.

John


I haven't seen any of the press reports (even though I am in London and I
hear that's where they were) but I thought this was a well drafted response.
The only additional rumours I have heard indicate that the police may have
been rough in their handling of demonstrators outside the fence at the plant
construction site.  I remember hearing that there were times that the
construction workers feared for their lives because of the vehemence of the
protesters.  I guess that didn't make it into the Human Rights Watch (ever
heard of them?) report.

Mark
---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
01/27/99 04:08 PM ---------------------------
From: Ken Lay and Jeff Skilling AT Master_po@CCMAIL on 01/25/99 02:20 PM
To:
cc:
Subject: Human Rights Watch

To:      All Employees
From:    Ken Lay & Jeff Skilling
Subject: Human Rights Watch

Over the next few days, you may see some press coverage of a report that was
issued by the Human Rights Watch which alleges human rights abuses in
relation to the Dabhol Power Company (DPC) project in India. As you know,
Enron is a 50 percent owner of the Dabhol project, which should be
operational next month.

We want each of you to know that this report is entirely without basis.  We
are very disappointed that Human Rights Watch has chosen to listen to the
perspectives of the people who have opposed the project since the beginning.
As you are probably aware, project opponents filed more than 20 lawsuits
against the project in the Indian courts over the past four years.  Every
lawsuit was dismissed, withdrawn or ruled in DPC's favor.  The project is
clearly above reproach.

Enron was advised of the Human Rights report just a few days before it was
issued.  The Dabhol Power Company, the Government of Maharashtra and our many
supporters were never even contacted.

DPC has worked hard to promote positive relations within the community.  A
handful of people who oppose the project were interviewed for this report in
great detail.  Unfortunately, the good relationships we have built with a
large percentage of the community were not reflected.  Our community efforts
have included building a school and a hospital, planting thousands of trees
at the site, building wells for drinking water and conducting numerous job
training programs for area residents. Last year, Enron made a $500,000 grant
to CARE to be used for programs in the state of Maharashtra.

Our media statement on the issue is as follows:

Dabhol Power Company does not tolerate human rights abuses by its employees
or contractors.  And, while we respect the work of Human Rights Watch and its
mission, this report is out of context at best and dredges up allegations
that have been put to rest over the past four years.  Much of the report
deals with concerns over state police actions, over which we have no control,
and it is misleading by Human Rights Watch to allege so.

Please refer any media inquiries to the Enron International public relations
office at 713-646-6416.


Sean and Diana do not recognize this deal. They tried to check with the
brokers, but couldn't get a hold of anyone. I'll let you know first thing in
the morning whether or not this is good and what the deal number is.

Kate

Evelyn Metoyer@ENRON
11/30/2000 03:08 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Missing Trade for 11-30-00

Prebon sent over a confirmation for the following trade for Sean Crandall
Enron buys from Aquila January  Mid-C 25 mw at $300.00


GROSS! I never thought of velveeta as a dessert type ingredient! Although, I
DO have a 2 lb. brick at home so I have enough for BOTH recipes! Nasty!

-----Original Message-----
From: Susan.Scott@enron.com [mailto:Susan.Scott@enron.com]
Sent: Thursday, October 05, 2000 2:57 PM
To: Shelton, Karin
Subject: RE: rapscallion in th' kitchen

Okay, it is a slow day at the office.  Here are recipes I found on the
Internet.
May be time to throw a White Trash party.

DOT'S CREAMY FUDGE

1 lb. margarine
1 lb. Velveeta cheese
1 Tbsp vanilla
4 lb. powdered sugar
1 cup Hershey's cocoa
1 cup nuts, chopped

Melt margarine, Velveeta cheese and vanilla in double boiler. Remove from
heat. Add powdered sugar, cocoa and nuts.  Mix together well. This sets up
fast. Press in buttered casserole dish. Makes about 5 pounds good fudge.

VELVEETA CHEESE FUDGE

1 lb. butter or margarine
1 lb. Velveeta cheese
1 cup cocoa
1 Tbsp vanilla
4 lb. powdered sugar
1 1/2 to 2 cup. nuts

Slowly melt butter and Velveeta. Can be done in microwave. Add cocoa and
vanilla. Mix well. Add powdered sugar and nuts. Mix well. This will be
very stiff. The last pound of powdered sugar may need to be added and
mixed by hand. Pour into buttered cookie sheet or 2 (9 x 13-inch) cake
pans. This makes about 6 pounds of very creamy and delicious fudge.
Stores well.

"Shelton, Karin" <kss@overlandpartners.com> on 10/05/2000 03:02:57 PM

To:   "'Susan.Scott@enron.com'" <Susan.Scott@enron.com>
cc:

Subject:  RE: rapscallion in th' kitchen

Mmm! Th' house did smell a bit oniony and I actually DID wonder even though
I had used small on-yons if I had used too many! I actually had cooked WAY
too much chicken .  They were pretty huge chicken breasts, so maybe I will
mix some of that stuff up for us from the leftover ingredients! I totally
overbought on Velveeta - minor grocery store freak-out I guess - so we can
make lots o' trashy Velveeta foods! I was in bed by 11:30 so it wasn't so
bad.

Karin

-----Original Message-----
From: Susan.Scott@enron.com [mailto:Susan.Scott@enron.com]
Sent: Thursday, October 05, 2000 2:22 PM
To: Shelton, Karin
Subject: Re: rapscallion in th' kitchen

Lawd have mercy!
hope your dish turned out great and you didn't use too many dem on-yons.
Mm!


Good morning,

How are you doing?  I enjoyed our ride in this morning.  I wish it could have been longer, sorry it wasn't.  I so wished it could have been longer, you look so good today.  Let me know what your plans are this evening, maybe I will have some time to spend with you.  I will let you know just as soon as I know.  It is really up in the air right now.  I don't want you to cancel anything.  Hope you have a wonderful day.

I think I am in a still in a daze from this morning, I can't imagine how I would feel if we would have stayed longer, probably very calm and wonderful.  I still feel wonderful, but something seems to be missing, anyway, better work.

Talk to you soon, my sexy thing.


Charlie,
 I have modified both documents based on Joan's comments.  I trust that you
will get them distributed to the proper parties.


Hey Steve; S
Sorry to bug you, but I'd like to ask howyou want us to include/review the
MD's on 9 Jan, and whom among that group we should anticipate being reviewed,
having profiles and data on etc?  We have the normal straight (for lack of a
better description) MD's; we have the COO's who are also MD's (Lavorato,
Sunde, Bowen, Mccarty, et. al); and finally we have the former EC members who
are not Policy Committee (but were, and perhaps still are EC ( i.e. Haug,
Bannentine, Sanjay, Tom White).

Should they be :
reviewed all one group,
divided so that COO's who are also policy committee and will be present on 9
Jan remain in NR during the main review period, then excused for their reviews
How to handle the former EC members? Are they still EC or effectively MD's of
another level to be reviewed separately?

Welcome your thoughts and advice on this,

Regards, Gina


Lawrence

We bought 100mw at $50 for HE 11-23 edt.  If the P&L shows 50mw, that's
because we had to give the cash guys 50mw.

Larry C.
800-963-0942


My message cut off...  The conclusion is that while we continue to need to
address the kinds of issues laid out in your recommnedations, we need to look
at solutions which may go deeper to adress our communications problems .. .
solutions which have become available only recently.  Why not have these guys
focus on an online training program to both teach people how to make
information available and accessible (eg by recording information and
updating on the intranet) and demonstrating the importance of this activity
to the success of the organization.

I think you and your team have done a fine job dealing with the traditional
(and perhaps largely insoluble problems) that this group wants to take on.  I
am pessimistic that the program outlined below will provide anything other
than marginal improvements.   I am somewhat optimistic, though, that we may
be able to bypass many of these problems (and get to the heart of what people
are really complaining about in the survey) by instituting real knowledge
management at Enron.

Richard Amabile
08/18/2000 05:20 PM
To: Mike McConnell/HOU/ECT@ECT, Louise Kitchen/HOU/ECT@ECT, David
Gorte/HOU/ECT@ECT, Cindy Olson/Corp/Enron@ENRON, James
Prentice/GPGFIN/Enron@ENRON, Jan Johnson/GPGFIN/Enron@ENRON, Mark
Koenig/Corp/Enron@ENRON, Sharon Butcher/Corp/Enron@ENRON, Mary
Clark/Corp/Enron@ENRON, Gina Taylor/OTS/Enron@Enron, Mike
Stewart/Corp/Enron@ENRON, Dave Schafer/OTS/Enron@ENRON, David A
Terlip/Corp/Enron@Enron, Joe Kishkill/SA/Enron@Enron, Marie
Hejka/Corp/Enron@ENRON, Craig Childers/HOU/EES@EES, Craig H
Sutter/HOU/EES@EES, Kirk McDaniel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Kathleen A Cook/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Keith
Sparks/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James C
Lewis/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ray Bennett/HOU/EES@EES, Joseph W
Sutton/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, George Wasaff/NA/Enron@Enron,
Elizabeth Tilney/HOU/EES@EES, Michael R Brown/LON/ECT@ECT, Andrew S
Fastow/HOU/ECT@ECT, Billy Lemmons/Corp/Enron@ENRON, Steven J
Kean/HOU/EES@EES, Scott Yeager@ees, Eric Thode/Corp/Enron@ENRON, Marie
Hejka/Corp/Enron@ENRON, Cynthia Barrow/HR/Corp/Enron@ENRON, John
Thompson/LON/ECT@ECT, Nigel Sellens/LON/ECT@ECT, David Oxley/HOU/ECT@ECT,
Drew C Lynch/LON/ECT@ECT, Marla Barnard/Enron Communications@Enron
Communications, robert.jones@enron.com, Kimberly Rizzi/HOU/ECT@ECT, Scott
Gilchrist/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janie
Bonnard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, willie.williams@enron.com, Scott
Gilchrist/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tim O'Rourke/Corp/Enron@Enron,
Miguel Padron/SA/Enron@Enron, Gerry Chatham/Corp/Enron@ENRON, Cindy
Skinner/HOU/ECT@ECT, Ranendra Sengupta/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: ksargent@cognitivearts.com

Subject: Computer Based Communications Training Initiative - Response
Reminder for Feedback

This is a reminder that we would like your feedback/input on the items
mentioned below regarding the Computer Based Communications Training
Initiative.  Please respond by the close of business Monday, August 21
otherwise we will need to move ahead with the responses received by that time.
             Dick Amabile
---------------------- Forwarded by Richard Amabile/HR/Corp/Enron on
08/18/2000 04:31 PM ---------------------------

Richard Amabile
08/16/2000 02:40 PM
To: Mike McConnell/HOU/ECT@ECT, Louise Kitchen/HOU/ECT@ECT, David
Gorte/HOU/ECT@ECT, Cindy Olson/Corp/Enron@ENRON, James
Prentice/GPGFIN/Enron@ENRON, Jan Johnson/GPGFIN/Enron@ENRON, Mark
Koenig/Corp/Enron@ENRON, Sharon Butcher/Corp/Enron@ENRON, Mary
Clark/Corp/Enron@ENRON, Gina Taylor/OTS/Enron@Enron, Mike
Stewart/Corp/Enron@ENRON, Dave Schafer/OTS/Enron@ENRON, David A
Terlip/Corp/Enron@Enron, Joe Kishkill/SA/Enron@Enron, Richard
Amabile/HR/Corp/Enron@ENRON, Marie Hejka/Corp/Enron@ENRON, Craig
Childers/HOU/EES@EES, Craig H Sutter/HOU/EES@EES, Kirk
McDaniel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kathleen A
Cook/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Keith
Sparks/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James C
Lewis/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard
Leibert/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ray Bennett/HOU/EES@EES, Joseph
W Sutton/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, George Wasaff/NA/Enron@Enron,
Elizabeth Tilney/HOU/EES@EES, Michael R Brown/LON/ECT@ECT, Andrew S
Fastow/HOU/ECT@ECT, Billy Lemmons/Corp/Enron@ENRON, Steven J
Kean/HOU/EES@EES, Diane Bazelides/HOU/AZURIX@AZURIX, Scott Yeager@ees, Eric
Thode/Corp/Enron@ENRON, Marie Hejka/Corp/Enron@ENRON, Cynthia
Barrow/HR/Corp/Enron@ENRON, John Thompson/LON/ECT@ECT, Nigel
Sellens/LON/ECT@ECT, David Oxley/HOU/ECT@ECT, Drew C Lynch/LON/ECT@ECT, Marla
Barnard/Enron Communications@Enron Communications, robert.jones@enron.com,
Kimberly Rizzi/HOU/ECT@ECT, Scott
Gilchrist/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janie
Bonnard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, willie.williams@enron.com, Scott
Gilchrist/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tim O'Rourke/Corp/Enron@Enron,
Miguel Padron/SA/Enron@Enron, Gerry Chatham/Corp/Enron@ENRON, Cindy
Skinner/HOU/ECT@ECT, Ranendra Sengupta/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: ksargent@cognitivearts.com

Subject: Computer Based Communications Training Initiative

As agreed in our V&V meeting today I have attached two items for your review:
1. A list of those who have been interviewed or have been part of a focus
group on this subject.

The input from individuals on this list will be the basis for developing the
5-7 key scenarios that will be a part of the training.  Please let me know if
you feel we should include more people from your unit to insure that your
unit's unique circumstances are appropriately taken into account.  If so, let
us know either their names or how you would like them to be identified.

Some of the individuals on this list will be contacted as Subject Matter
Experts to help provide real Enron contexts for the scenarios as they are
further developed.

2. A list of the "first draft" objectives for the program and 10 possible
scenarios.

Since we will only be able to have a total of about 5-7 scenarios in the
final version, identify the 5 - 7 on this list of high level scenario ideas
that will have the most impact on improving communications and the most
applicability to a range of managers across the Enron organization.  Any
other feedback you can provide on the objectives or scenarios would be
greatly appreciated.

We are seeking to move forward with the development of scenarios by the
beginning of next week.  Therefore, if you could provide your feedback on
both of the items above by Friday, August 18th, it would be greatly
appreciated.

             Dick Amabile


I thought you'd appreciate the humor in these.  Actually the first one's kind
of scary!!  Just in case you think I made this stuff up the web site's at the
bottom.

The U.S. Department of Agriculture is actively proposing that animal
carcasses with cancers,
     tumors or open sores be regarded merely as unaesthetic but safe for
human consumption as
        long as the offending part is cut away. The proposal is part of a
general loosening of
     slaughterhouse inspection standards, whose public comment period ends
Aug. 29. One critic
    already weighed in, saying she did not want to "eat pus from a chicken
that has pneumonia," but
    also included as benign by the proposal are glandular swellings,
infectious arthritis and diseases
                             caused by intestinal worms.

                               In Their Own Words

     Hubert Penrod Jr., on why the May promotion he had scheduled for his
Huge Hooter Haven
     strip club in Nashville had failed to attract men who had come to town
for the Billy Graham
    Crusade that weekend: "I know all the porn stars, but I don't exactly
keep up with preachers.
     Hell, I thought Billy Graham was some singer or something. It never
entered my mind that (it
                was) some preacher (who) was filling up the football stadium."

http://www.msnbc.com/comics/nw.asp


I don't have the list yet but I'll forward the info to you immediately upon
receipt.

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

	steven.kessler@db.com
	03/13/2001 12:47 PM

		 To: Sara.Shackleton@enron.com
		 cc:
		 Subject: Re: Assignment of trades

Hi Sara.  I did just hear. Your approach sounds fine.  Do you have a schedule
of trades, or should I try and dig one up?

Rgds

Steven Kessler
Director and Counsel
Deutsche Bank AG New York Branch
Tel: (212) 469-8202
Fax: (212 469-8172

Sara.Shackleton@enron.com on 03/13/2001 12:39:20 PM

To:   steven.kessler@db.com
cc:
Subject:  Assignment of trades

Hi, Steve:

We am preparing a form of assignment from ECT Investments, Inc. in favor of
Enron North America Corp. whch will transfer several credit derivative
Transactions.  I anticipate an attachment to the assignment which will
identify the trades.  I believe that Bill Bradford (Ernon) and Mark
Tarkington have discussed these trades and Bill is sending me the list.

Please let me know that you are aware of this request.  Thanks.

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


Please respond to

R. Todd Gross
NYMEX/Location/Basis Options
281-340-0875

Again Jesus said, 'Peace be with you! As the Father has sent me, I am
sending you.'
 John 20:21 (NIV)

Jesus again identified himself with his Father. He told the disciples by
whose authority he did his work. Then he passed the job to his disciples of
spreading the gospel of salvation around the world. Whatever God has asked
you to do, remember: (1) your authority comes from God, and (2) Jesus has
demonstrated by words and actions how to accomplish the job he has given
you. As the Father sent Jesus, Jesus sends his followers...and you.


Sally

I meet today with a representative of the Aust Financial Markets Assoc (AFMA)
to look at a system they have developed called SCOR: Standards for the
Control of Operational Risk. It is essentially a complex set of procedures
for identifying and managing operational risk. The idea is to use it to
benchmark and develop in written form your own control procedures.

I have a presentation pack and I think this would be worth our subscribing:
cost is $US5 500 for 3 years, but I was wondering:

1. Who would be the right person in Houston/London to go through this with -
if that is required
2. Am I re-inventing the wheel and do we have detailed written procedures all
ready.

Any feedback would be great. Another point to note that may be of interest:
all our trading counterparties in the energy markets have taken it, including
some with US parents like ourselves, including Delta and NRG. This surprised
me a little.

With thanks

Heidi