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Future of Kyoto Protocol Minus U.S. Is Uncertain
The Wall Street Journal, 07/16/01

As the shakeout proceeds, some business-to-business marketplaces show their
staying power.
The New York Times, 07/16/01

Municipal power firms cleaned up / Public producers charged state far more
than private
The San Francisco Chronicle, 07/16/01

Enron's Lay Visit Fails To End India Dabhol Woes
Dow Jones International News, 07/16/01

INDIA'S NTPC WILL NOT BUY ENRON STAKE IN DAHBOL POWER: GOVERNMENT
Asia Pulse, 07/16/01

INDIA PRESS: Min Rules Out NTPC Buying Out Dabhol Power
Dow Jones Asian Equities Report, 07/16/01

INDIA PRESS: Dabhol Needs $500M To Restart Construction
Dow Jones Asian Equities Report, 07/16/01

ITALIAN PRESS: Montedison Seeking Help In Takeover Defense
Dow Jones International News, 07/16/01

San Jose Mercury News, Calif., Stocks.comment Column
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News -
California, 07/16/01

Innogy's pounds 300m power-trading lift
The Independent - London, 07/15/01

Finalise terms of reference for Enron probe in 8 days:Munde
Press Trust of India Limited, 07/15/01

Karl Rove, President's Focus Engineer, Finds Self in Spotlight; Eyes of Bush
Critics Turn to Key Adviser If the Message Blurs
The Washington Post, 07/15/01

8 firms plan building vast interstate gas pipelines / But energy experts say
other states could tap into supply first
The San Francisco Chronicle, 07/15/01

Sale withdrawal raises Mitie hopes
The Times of London, 07/15/01

Future of Kyoto Protocol Minus U.S. Is Uncertain
By John J. Fialka and Geoff Winestock
Staff Reporters of The Wall Street Journal

07/16/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Diplomats from around the world gather in Bonn starting today to address a
seminal question: Will there be a Kyoto protocol on global warming without
the U.S., or none at all?
The key player in answering that question appears to be Japan, whose position
may well determine whether other industrialized nations move ahead despite
the Bush administration's vigorous opposition.
The Kyoto protocol will be the central issue at a United Nations convention,
which initially was intended to complete the pact after talks in The Hague
broke down in November over relatively minor differences between the European
Union and the U.S. Since then, however, President Bush rejected the treaty as
"fatally flawed," throwing its future into doubt.
The protocol, brokered by former Vice President Al Gore in 1997 and later
signed by former President Clinton, requires industrial nations to reduce
their emissions of carbon dioxide and five other gases thought to be warming
the planet by 5.2% below 1990 levels. The Bush administration wants an
alternative that is less punishing on the energy-intense U.S. economy, and
that imposes tougher requirements on China, India and other fast-developing
nations.
President Bush on Friday announced a series of steps to reduce the impact of
heat-trapping gases, in lieu of the Kyoto protocol. The president unveiled a
$120 million National Aeronautics and Space Administration project to study
climate modeling, among other things. The Department of Energy, meanwhile,
has signed two agreements to study carbon levels, and the White House also
awarded $25 million in grants for similar studies elsewhere. Finally, the
Department of Treasury started a $14 million forest-conservation program in
El Salvador.
Still, the U.S. turnabout on Kyoto continues to shock Europe, and European
leaders vow to go it alone. "To wait for the U.S. is to wait for someone who
has refused your invitation," European environment commissioner Margot
Wallstrom said this week.
But under the terms of the protocol, the Europeans need ratifications from
industrial nations that emit 55% of the developed world's "greenhouse" gases,
and European nati ons don't account for that level of reductions themselves.
Reaching that amount without the U.S. isn't possible without the support of
Russia and Japan.
Japan's position is most up in the air, and it accounts for 8% of total
emissions. Japan's environmental minister, Yoriko Kawaguchi, paid a series of
last-minute calls on U.S. cabinet officials on Friday. Japanese officials
want the Kyoto protocol to come into force, but they appear reluctant to take
a position against the Bush administration.
To push its case, the EU has spent the past two weeks trying to build a
constituency around the world to put the protocol into effect, a move that
would allow key provisions to acquire legal force, such as an international
emissions-trading system and penalties for noncompliance.
Ms. Wallstrom visited Asia and Australia last week, and British Deputy Prime
Minister John Prescott was in Tokyo on Thursday. The EU strategy has been to
offer to make it easier for these wavering countries to sign up. For example,
the EU was previously reluctant to allow "sinks" such as forests, which soak
up carbon dioxide and hence reduce net emissions of greenhouse gases, to be
counted toward national targets for emission reductions. But in a bid to win
support from key countries, especially Japan, it is now offering more
flexibility on sinks.
Paula J. Dobriansky, an undersecretary of state who will lead the U.S.
delegation, said the U.S. will not block other nations that want to pursue
the protocol, but it will intervene in Bonn if the talks affect other U.S.
interests. "We plan to be very active and constructive in that regard." The
Bush administration is still studying alternatives to the treaty.
Meanwhile, U.S. companies are divided on the protocol. Eileen Claussen, head
of the private nonpartisan Pew Center on Climate Change, has formed a group
of 36 major companies that includes DuPont Co., Enron Corp., Weyerhaeuser Co.
and Boeing Co., to argue for action on global warming. While they don't agree
on every aspect of the Kyoto formula, she explains, "they all want to get
this process started in a way that spreads out the pain but gets something
done."
Meanwhile, the Global Climate Coalition, whose membership includes the U.S.
mining industry, the National Association of Manufacturers and other large
industrial trade associations, supports the Bush antitreaty stance. Taking
more time to discuss the protocol, says Glenn Kelly, its executive director,
"will continue the Kyoto quagmire and allow diplomats to continue to collect
frequent-flier miles."

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

Business/Financial Desk; Section C
E-Commerce Report
As the shakeout proceeds, some business-to-business marketplaces show their
staying power.
By Bob Tedeschi

07/16/2001
The New York Times
Page 4, Column 1
c. 2001 New York Times Company

EARLIER this year, Forrester Research, the Internet consulting firm,
predicted that the universe of business-to-business e-marketplaces would
shrink to a mere 180 in the next two years, from 1,000 or more today. It was
a bleak forecast, but one that surprised few who had watched such sites
search in vain for customers in 2000.
The shakeout is proceeding apace, with the rate of mergers and failures
picking up where the consumer e-commerce sector left off. But just as some
survivors have begun to emerge from the consumer e-commerce rubble, so, too,
have some of the so-called B2B marketplaces started to show some staying
power.
In recent weeks, Pantellos, an online marketplace for the utilities industry,
said it had handled nearly $200 million of transactions since it rolled out
in January. ChemConnect, an online chemicals exchange, recently crossed the
$1 billion mark in transactions handled so far this year. Intercontinental
Exchange, a trading site for electric power, gas and oil, said it had handled
more than $100 billion in trades in the 10 months since it opened.
These companies and a handful of others, analysts said, have managed to
attract buyers and sellers by broadening their service features beyond the
typical marketplace site, which heretofore had focused mainly on the concerns
of buyers. ''While buyers have run to this fairly quickly, suppliers
haven't,'' said Matthew Sanders, a Forrester analyst.
Most of the business-to-business marketplaces, Mr. Sanders said, were created
with the premise that if a corps of powerful buyers in a given market
gathered on one site, the suppliers would come running -- even if that meant
the suppliers had to engage in auctions in which they underbid one another
for the right to sell their wares.
''But attributes that go beyond price, like quality, service, the stability
of the brand, warranties -- all the things suppliers build around their
products -- marketplaces haven't allowed them to offer,'' Mr. Sanders said.
ChemConnect, for one, has countered that trend, said Michele B. Hincks, the
company's vice president for marketing. Ms. Hincks said the site had set up
an online exchange floor, where 5,000 to 7,000 companies negotiate to buy and
sell specialized chemical products.
The site lists companies that are interested in buying or selling certain
types of chemicals, and then sets them up in password-protected negotiation
rooms, where they can deal with such issues as product quality, warranties,
shipping and price. In exchange for enabling such negotiations, Ms. Hincks
said, ChemConnect charges annual subscription fees of $300 to more than
$100,000.
According to a recent report by Gartner's GartnerG2, a business strategy
research firm, e-marketplaces will broaden their offerings even further in
the coming months, to rely on a wider spectrum of business services, like
supply-chain collaboration and demand forecasting.
In the case of e-Steel, such services now dominate the company's business
plan. Michael S. Levin, e-Steel's chief executive, said that about a year
ago, the company changed its focus from a typical e-marketplace to that of a
software seller that also operates an online marketplace for heavy
industries.
Companies like Ford Motor and BHP, the Australian miner, Mr. Levin said,
''told us in their own way that enabling a transaction online is interesting,
but insufficient, and that we had to do more than that for them to become
clients.''
So e-Steel developed software that the companies now use to help integrate
their manufacturing processes with those of their suppliers, using the Web.
Among other things, the software permits Ford to track and manage the
manufacturing steps that begin when it orders steel from a supplier.
The software helps Ford move the steel to plants for processing, while
accounting for the different specifications for rolling the steel, stamping
it, and moving it to various processors and assembly plants.
Mr. Levin would not say how many clients e-Steel had for the software, which
costs each customer millions of dollars a year and requires multiyear
contracts. Nor would he disclose revenue figures for the company, which is
privately held. But he said the company had ''two years' worth of money in
the bank, and way before that, probably within 15 months, we'll be cash-flow
positive.''
As for the site's marketplace, Mr. Levin said it still had value, ''but only
as part of a much more powerful set of tools'' and for serving as a place for
attracting prospective software clients.
Analysts and executives also pointed to the role of experienced -- and
independent -- management for whatever success some e-marketplaces had
experienced so far. Lauren Jones Shu, research director at GartnerG2, said
those were not advantages shared by many of the so-called industry consortium
marketplaces, which are owned by a collection of the major participants in a
given industry.
E-marketplaces like Covisint and Exostar, which are owned by some of the
biggest companies in the automotive and aerospace industries, respectively,
are examples of consortium-owned sites. But Ms. Shu declined to say whether
she thought the ownership structure of those particular sites was a handicap.
Still, Ms. Shu said, ''a lot of them have agendas that are too large, and are
trying to cater to the various needs of different members.''
Apparently, at least one e-marketplace owned by an industry group, Pantellos,
has avoided paralyzing its management. Pantellos, an online exchange that is
owned by 21 large utility companies, was cited by Mr. Sanders, the Forrester
analyst, as one of the few e-marketplaces to find success this year.
The site caters to utility companies and energy service companies like
General Electric, helping utilities and power companies build and manage
power plants, for example, and offering a forum for suppliers of those
services to compete for business. The business is growing quickly, said
Graham Collins, the company's chief executive. ''Virtually all of our
operating metrics are doubling every two weeks,'' he said.
Mr. Collins attributed that growth, in large part, to the fact that the 21
companies with ownership stakes in Pantellos did not have a direct say in how
it operated. ''That's allowed us to stay focused on the interests of our
memberships, not the parochial interests of the shareholders,'' he said.
''There's nothing more mind-numbing than to attend meetings where you have to
vote on whether or not you should vote.''
Luck, of course, has played a role in the early success of some online
exchanges -- perhaps most notably in the success of Intercontinental
Exchange, which in April announced it would buy Europe's largest offline
energy exchange, the International Petroleum Exchange.
Jeffrey Sprecher, chief executive of Intercontinental Exchange, based in
Atlanta, said the core of the site's technology was refined between 1994 and
1997. But at that time, Mr. Sprecher said, ''absolutely no one'' in the
electric power, gas and oil markets wanted to trade in the forward and
futures markets online. ''Everybody thought they were already getting the
best prices,'' he said, and they feared that posting prices on the Web would
destroy that competitive advantage.
Then in October 1999, Enron started buying and selling these products online,
''and the whole argument about pricing went away,'' Mr. Sprecher said.
Shortly thereafter, he offered equity in his site to 13 market makers, like
BP and Goldman Sachs, in exchange for commitments to use the site for
trading.
''I got lucky in that I built this before the Internet revolution,'' Mr.
Sprecher said. ''The last year's been amazing, compared to the early years,
which involved a lot of sitting around.''

Photo: The Dofasco steel company is an investor in e-Steel and one of its
''strategic customers.'' Employees at the Dofasco operations in Hamilton,
Ontario, bind a roll of automotive steel in preparation for shipping. (Taras
Kovaliv)

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

NEWS
Municipal power firms cleaned up / Public producers charged state far more
than private
Mark Martin, Lynda Gledhill
Chronicle Staff Writers

07/16/2001
The San Francisco Chronicle
FINAL
A.1
(Copyright 2001)

From the start of the state's energy meltdown, Gov. Gray Davis and many
lawmakers have cast private out-of-state energy companies -- especially those
in Texas -- as pirates plundering California's economy.
But a Chronicle analysis found that some of the most expensive megawatts
California bought during the bleak winter months actually came from what many
would consider to be sympathetic traders -- publicly owned power producers.
The Chronicle study of spot market purchases shows that as a whole, public
agencies in California and elsewhere charged an average of about $344 per
megawatt hour during the first three months of the year, while private
companies charged less than $250.
More than 80 percent of the power sold by public agencies was above the $269
per megawatt hour average that California paid all power providers. Less than
a third of the power from private companies exceeded that average.
"I think anybody who ripped off the state ought to be investigated," said
Harvey Rosenfield, head of the consumer group Foundation for Taxpayer and
Consumer Rights. "A publicly owned utility shouldn't be prospering from this
crisis. And those munis that did ought to immediately forfeit any excessive
profits."
Yet, like with everything in the power crisis, not everything is always as it
appears, and public utility officials say they're hardly to blame for the
sky-high electricity prices.
Interviews with operators of publicly owned power providers paint a picture
of state Department of Water Resources electricity buyers sometimes so
desperate to avert rolling blackouts that they didn't haggle over price.
"DWR called us and said we're looking for power at $500 a megawatt hour for a
seven-hour period," said Kate Hora, a spokeswoman for the Modesto Irrigation
District, which delivers power to 95,000 customers in the Central Valley.
"There was no negotiation. We just helped them out at the price they named."
Pete Garris, chief of operations for the DWR department in charge of buying
and selling power, said something like that would not have been typical.
MUNIS PROVIDE 'RELIABLE ENERGY'
"I could see offering $500 per megawatt hour when the market was trading at
$650," he said. "One thing munis do for the most part is provide reliable
energy. If they say they are going to deliver so many megawatts, they are
going to deliver."
But that reliability can be expensive.
Much of the public power was hydroelectric from the Pacific Northwest,
usually delivered at expensive peak demand hours. And municipal agencies say
they were forced to press into operation old, inefficient generators.
"(State officials) would call and say, 'We need the energy,' " said Ignacio
Troncoso, director of public service for Glendale Water and Power. "We didn't
really want to give it to them because it meant using some very inefficient
turbines, but they said they needed it. Sometimes, it cost $1,000 or $2,000
per megawatt hour, but they paid it."
S. David Freeman, Davis' top energy adviser, said the state bought a
relatively small percentage of its power from municipal utilities, and it was
at a time when the state was getting nearly all of its electricity in the
volatile spot market.
20% FROM PUBLIC AGENCIES
About 20 percent of the power purchased by California in the first quarter of
2001 came from publicly owned agencies in the United States, Canada or
Mexico.
"You have to consider the volume," said Freeman, whose hiring in April was
controversial because he headed the Los Angeles Department of Water and
Power.
Los Angeles charged California on average $292 per megawatt hour for power.
Before he joined the state in April, Freeman said Los Angeles' rates were
based on cost plus 15 percent.
"I don't say we're angels, but we're being neighborly," he said then. "We're
not giving you a cup of sugar, we're selling it, but not at exorbitant
prices."
Like Los Angeles, Canada's publicly owned BC Hydro sold more than 800,000
megawatts to the state in the first three months of the year at above-average
costs. Spokeswoman Elisha Odowichuk said the utility's rates to California
were higher because of delivery costs.
But the utility made enough money to give their Canadian customers a $130
rebate.
DAVIS WANTS $8.9 BILLION BACK
Davis has demanded $8.9 billion in refunds for electricity prices the state
says were excessive. The state estimates that it is owed about $600 million
from the municipals, Michael Kahn, chairman of the board of the Independent
System Operator, said last week.
The state is hoping that the Federal Energy Regulatory Commission will order
private providers to issue refunds. But the commission has no jurisdiction
over municipal utilities.
At least one offer was put on the table by municipal utilities and is under
consideration, said Steve Maviglio, spokesman for Davis. If no deal is
reached, the state is prepared to go to court, he said.
"Anybody who is on the list of price gougers, we intend to seek refunds
from," he said.
WHY PUBLIC POWER COST MORE
Energy experts suggested several reasons why public power may have cost the
state more than electricity offered by Enron, Duke and other private
companies.
The state probably bought most public power during peak usage hours in the
evening or during days when rolling blackouts loomed, said Severin
Borenstein, a professor with the University of California's Energy Institute
in Berkeley.
That's how the Modesto Irrigation District briefly got into the business of
selling power to the state. The district sold 175 megawatts to California on
Feb. 13 for $500 per megawatt hour.
The district bought power from an Oregon utility for $375 per megawatt hour
and delivered it to the state from 1 to 7 p.m. during a Stage 3 power alert.
The state avoided blackouts that day.
Seattle City Light earned on average the most per megawatt hour of any public
utility, getting a price of $634. But an official there also said there were
no negotiations with the state.
The utility had a contract to deliver electricity to 35 Nordstrom stores in
California. State power grid officials determined that the stores weren't
using all the power and then snapped up the excess for what is referred to as
the clearing price: the highest price paid for electricity during that hour.
SEATTLE'S CHARGES DEFENDED
But Seattle isn't rolling in money because of its dealings with California.
The utility has raised rates three times this year, spokesman Dan Williams
said.
Modesto's and Seattle's experiences are probably similar to other public
utilities, said Michael Shames of the Utilities Consumer Action Network,
based in San Diego.
"The munis did make a profit," he said. "But there's no evidence that Los
Angeles or any other city made the same kind of sky-high profits that the
Dukes of the world did. We haven't seen any municipal utility officials
taking expensive vacations because of the crisis."
Shames suggested that public utilities' high rates may not have been as high
as private companies' offers.
"When they (state energy officials) got really tight, the private companies
were probably offering to sell at exorbitant prices," he said.
STATE WAS NO CHARITY CASE
Still, several publicly owned agencies acknowledge that they didn't treat the
state Department of Water Resources as a charity case.
When the state was desperate for megawatts, Burbank officials would look for
power on the open market and sell it to the state if they could make a 10
percent profit to cover such things as administrative expenses, said Fred
Fletcher, assistant general manager of the utility. Sacramento Municipal
Utility District did the same, a spokesman said.
Fletcher scoffed at any charge that municipal utilities owe California a
refund.
"It's insulting to ask for any money back. We weren't part of the problem,
and we helped the state in a crisis," he said. "And it's not like we're doing
well."
Glendale residents face a 10 percent increase in electricity rates beginning
this month, and Burbank ratepayers will see their power bills rise 17 percent
beginning this month.
-----------------------------------------------------------
CHART: The cost of power for California Some of the most expensive megawatts
that California purchased on behalf of financially troubled utilities at the
height of the energy crisis came from publicly owned power generators. The
average price paid during the first three months of the year exceeded the
prices paid to private power companies. Name MWh Average price City of
Seattle, City Light Department 3,870 $634.17
Modesto Irrigation District 175 $500.00
Powerex (trading arm of BC Hydro) 804,302 $497.87
Tacoma Power 5,889 $475.43 Eugene Water & Electric Board 151,850 $432.37
Grant County PUD (Washington) 91,209 $348.18
Sacramento Municipal Utility District 47,555 $330.34
City of Glendale 27,325 $326.99
Bonneville Power Administration 461,144 $304.64
Los Angeles Dept. of Water & Power 805,479 $292.28 Silicon Valley Power (City
of Santa Clara) 400 $290.00 City of Burbank 28,940 $273.13
MSR Public Power Agency (Modesto) 65 $255.00
Turlock Irrigation District 10,675 $237.31
California Dept. of Water Resources 287,454 $205.25
Commission de Federale Electricidad(x) 50,752 $192.91
City of Riverside 330 $190.00
Northern California Power Agency 27,172 $186.87
East Bay Municipal Utility District 1,424 $173.00
Salt River Project (Arizona) 80,076 $169.17
City of Vernon 22,145 $161.67
City of Anaheim 33,532 $152.60
Megawatts used from public agencies 2,941,763 $343.67
MWh Average price Total megawatts used from private sources 9,943,224 $246.79
Total megawatts purchased from all sources 12,884,987 $268.90 (x) Mexico
Source: California Department of Water Resources, Chronicle research
Chronicle Graphic

PHOTO, CHART: SEE END OF TEXT

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

Enron's Lay Visit Fails To End India Dabhol Woes
By Himendra Kumar
Of DOW JONES NEWSWIRES

07/16/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- U.S energy major Enron Corp. (ENE) Chairman Kenneth
Lay met with India's leadership last week in an effort to resume operations
of the company's local power plant, saying the project's future looked good.
Yet, to analysts and the project's lenders, there is still no end in sight to
the problems of Dabhol Power Co., Enron's India subsidiary. Dumped by its
sole buyer, the Maharashtra State Electricity Board over unaffordable
tariffs, the 740 megawatt Dabhol power plant in the western Indian state of
Maharashtra remains shut since May 29.
Work on an 85% complete 1,444 MW Dabhol phase II project - due to start
operations later this year - has also stopped as funds from lenders dried up.
Enron has so far, turned down a government proposal for lower tariffs which
analysts say could end the stalemate.
"The lenders feel the DPC should start renegotiating the power purchase
agreement so that phase I can be restarted at the earliest," said R.S.
Agarwal, executive director of Industrial Development Bank of India (P.IDB),
one of the main lenders to the Dabhol project.
The Indians have lent $1.4 billion out of the project's $2.9 billion total
projected cost. IDBI's own exposure is in the excess of 20 billion rupees
($1=INR47.16) and the bank runs the risk of going deep into the red if the
project goes bust.
Dabhol is India's single largest foreign investment to date.
R.K. Pachauri, director of an independent think tank Tata Energy Research
Institute said: "Enron has to go ahead and just renegotiate its power
purchase agreement with MSEB and cut tariffs, as far as the project's phase I
is concerned. As regards phase II, it needs to talk to interested parties
like power deficit states and keep tariffs at competitive levels. Delays are
not going to help anyone. Action needs to be taken quickly."
Lay indicated that the Houston-based energy major was considering easing its
stance.
"I did not want to leave the country this time without reaffirming my
interest in, and support for India, and my strong belief that there is a
great potential in this country," he said before flying back to the U.S.
"I hope that we will be able to find a resolution to this (Dabhol) problem
that allows us all to move forward and realize that potential," he added.
The Indian government on its part, says, it thinks the dispute is between a
seller and buyer of electricity. The project is guaranteed by the federal
government.
"Dabhol needs to sort out its differences over payments with MSEB before the
government can settle any claims of Enron," said a senior Indian Power
Ministry official.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to Dabhol charging 7.1 Indian rupees a kilowatt-hour for its
power, compared with INR1.5/kwh charged by other domestic suppliers.
The project has been in trouble since December when the government of
Maharahtra state said the company charged exorbitant prices for electricity,
and demanded a new price agreement. Enron did not bow on the call, the
situation deteriorated and phase I eventually ceased operations in late May.
Enron has a controlling 65% stake in DPC. Other shareholders include the MSEB
with 15% and General Electric Co.(GE) with Bechtel Corp.(X.BTL) with 10%
each.
DPC sent MSEB a preliminary termination notice in May and if no common ground
is reached, phase I could close down for good within six months from the
notice. A London arbitration court would then rule which of the two sides
defaulted on the contract for compensation purposes.
-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426;
himendra.kumar@dowjones.com

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

INDIA'S NTPC WILL NOT BUY ENRON STAKE IN DAHBOL POWER: GOVERNMENT

07/16/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, July 16 Asia Pulse - The federal government has ruled out the
possibility of the National Thermal Power Corporation (NTPC) buying out US
energy giant Enron's stake in the controversial Dabhol Power Company (DPC).
Federal Power Minister Suresh Prabhu said this during the meeting with Enron
Chairman Kenneth Lay, who was here last week to discuss the fate of the US$3
billionr project, which is embroiled in a payment controversy with
Maharashtra State Electricity Board (MSEB), government sources said.
The Enron team, led by Lay, discussed several options, including an exit
route in which the government takes over the beleaguered US$3 billion Dabhol
power project.
Though exact details of the meeting were not forthcoming, sources familiar
with the discussions said that the government takeover could possibly be done
through NTPC or a Special Purpose Vehicle (SPV) involving NTPC taking over
the plant and selling power to the national grid.
Enron, which holds 65 per cent interest in DPC, is scouting for Indian
companies who can take over its equity worth over US$800 million.
Ruling out the option, Prabhu had pointed out that there was no question of
NTPC buying Enron's stake in DPC saying, "The NTPC was not in the business of
taking over sick companies."
Enron's Indian unit, Dabhol Power Co., and state utility Maharashtra State
Electricity Board, have been locked in a wrangle for more than six months
over payments.
In May, Enron issued a preliminary termination notice after MSEB defaulted on
payments, and the utility, Dabhol's lone buyer, stopped taking power from the
embattled US$2.9 billion plant.
(PTI) 16-07 1851

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

INDIA PRESS: Min Rules Out NTPC Buying Out Dabhol Power

07/16/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Indian Power Minister Suresh Prabhu has ruled out the
possibility of the state-owned power utility National Thermal Power Corp.
(P.NTP) buying out Dabhol Power Co., the controversial Enron-controlled $2.9
billion power project in the western Indian state of Maharashtra, reports The
Financial Express.
The newspaper report says Prabhu communicated this to Enron Corp. (ENE)
Chairman Kenneth Lay during their meeting last week in New Delhi. Enron owns
a 65% stake in DPC.
The Dabhol project is the largest single foreign investment in India to date.
Phase 1 is capable of producing 740 megawatt electricity. However the power
plant isn't in operation because its sole buyer, the Maharashtra State
Electricity Board, stopped drawing power since May 29 over what it called
"unaffordable tariffs." Work on 1,444 MW Dabhol Phase 2 was suspended June 17
following nonpayment of its bills by DPC to its contractors. Website:
http//www.financialexpress.com

-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426;
himendra.kumar@dowjones.com

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

INDIA PRESS: Dabhol Needs $500M To Restart Construction

07/16/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Dabhol Power Co., an Indian unit of U.S. energy major
Enron Corp. (ENE), will need to raise $500 million to restart construction on
the 1,444 megawatt Dabhol plant phase II, reports the Financial Express.
DPC is incurring a loss of at least half a million dollars a day after the
construction work on Dabhol phase II was suspended June 17 following
nonpayment of its bills by DPC to its contractors, the report says.
At $2.9 billion, Dabhol is the largest single foreign investment into India
to date. Enron owns a controlling 65% stake in DPC located in the western
Indian state of Maharashtra. Dabhol Phase I is capable of producing 740
megawatt electricity. However the power plant is currently not in operation
because its sole buyer, the Maharashtra State Electricity Board, stopped
drawing power since May 29 over what it called "unaffordable tariffs."
Newspaper Web site: http//www.financialexpress.com

-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9426;
himendra.kumar@dowjones.com -0-
16/07/01 04-00G

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

ITALIAN PRESS: Montedison Seeking Help In Takeover Defense

07/16/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

MILAN -(Dow Jones)- Montedison SpA (I.MNT) is preparing its defense of a Fiat
SpA (FIA)-led takeover bid and is planning on calling on the Benetton family
or Luxottica SpA (LUX) as partners, Il Sole 24 Ore reported at the weekend.
A U.S. industrial partner, such as AEP (AEPI), Enron (ENE), Entergy (ETR),
Aes (AES) or Mirant (MIR) could also aid in a defense strategy, the paper
says.
Newspaper Web site: http://www.ilsole24ore.com
-Milan Bureau, Dow Jones Newswires; 39 02 7601 5386 -0- 16/07/01 07-51G

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

San Jose Mercury News, Calif., Stocks.comment Column
Scott Herhold

07/16/2001
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

When Calpine (CPN) was selling for around $37 last fall, I suggested it might
be worth considering because it had been unfairly battered by political
winds. It's since gone up, back down, and back up again, finishing Friday at
$44.53. So now might be the time to take a look at its longer-term prospects.
Looking several years out, it's worth listening to the skeptics -- and to how
Calpine responds to them.
The gentle breezes of doubt -- and it has to do with an England acquisition,
of all things -- come from an organization called CreditSights
(www.creditsights.com), which analyzes companies with bondholders in mind.
Because Calpine has issued so many bonds to finance its expansion, what the
bondholders think makes a difference.
No other company in Silicon Valley -- not even Cisco, not anymore -- has
quite the scope of ambition of Calpine (CPN), the independent power generator
with offices in downtown San Jose.
If you live in the valley, you may know the company best for its gritty --
and now apparently successful -- fight to establish a power plant off Metcalf
Road in San Jose.
If you live in California, you may know about its intricate dance with PG&E
over whether they would be paid for $266 million of unpaid bills.
But these are only a few glimmers in the klieg lights of its ambitions. Not
everyone is singing hosannahs. A recent report by CreditSights analyst Dot
Matthews was a good-news, bad-news review of Calpine.
First, in a development she said was "probably most important," she hailed
the recent agreement with PG&E that would allow Calpine to collect the $266
million owed to it. The market has greeted this news with acclaim, sending up
Calpine's stock by about $7 a share -- or about 20 percent -- since the news
of the agreement broke early this month.
But in CreditSights' view, another piece of news from Calpine was unsettling:
The announcement that the company was paying $800 million to acquire the new
1,200-megawatt Saltend power plant near Hull, England, its first overseas
acquisition.
"This is disappointing for two reasons," Matthews wrote. "First, the plant is
in Englandwhich is a difficult place for American companies to make money in
power production distribution. Second, we are starting to see a pattern
develop where Calpine appears to be buying plants that other savvy players
don't seem to want. We are concerned that Calpine may be expanding at any
price so it can keep up the earnings growth that fuels its stock quote."
The CreditSights report went on to note that both Enron and Entergy (ETR),
which built the Saltend plant, are selling generation facilities -- and that
there is no shortage of power in England.
So what is Calpine's response? I talked with Calpine senior vice-president
Ron Walter, who says the acquisition of Saltend -- a state-of-the-art
gas-fired plant -- is part of a long-term plan to expand outside the
continental United States and Canada. (Calpine has said it's also looking at
possibly expanding in Italy and Spain).
"The growth (in England) is certainly not what the growth is in this
country," Walter said. "But because of the unique nature of this plant, we
feel it's going to do extremely well in this marketplace."
Walter points out that Enron, a heavy trader of energy, has a very different
business plan than Calpine, which has stayed a manufacturer. And he says that
Entergy wanted cash out of its Saltend plant.
And to the charge of expanding too fast? Walter insists -- with justification
-- that Calpine has demonstrated nimbleness today in building 29 power plants
at once.
"We spend all our time looking at each market, at the age of plants, and what
the competition is doing," he said. "We pick the targets that make sense."
It's a good response, and investors who have stayed with Calpine have been
amply rewarded. The stock has gone up 22-fold since its IPO nearly five years
ago.
But it's hard to dismiss all doubt. History teaches that an empire inevitably
gets harder to manage the more far-flung it is. Remember, the Romans
ultimately had trouble doing business in England, too.
Scott Herhold's Stocks.comment appears every Monday and Thursday. Write him
at the San Jose Mercury News, 750 Ridder Park Drive, San Jose, Calif. 95190;
e-mail sherhold@sjmercury.com; phone (408) 920-5877.To read the columns
online, see www.siliconvalley.com/opinion/herhold/b

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

Business
Innogy's pounds 300m power-trading lift
BEN ROSIER

07/15/2001
The Independent - London
FINAL
1
(Copyright 2001 Independent Newspapers (UK) Limited)

Innogy, the domestic electricity business which demerged from International
Power, can expect a boost of up to 500 million euros (about pounds 300m) over
the next three years by exploiting the emerging power-trading business.
The figure is based on calculations by analysts at Schroder Salomon Smith
Barney (SSSB), who say utility businesses such as Enron have used the
practice in the US market. They say European firms such as Innogy and
PowerGen, which is in the process of being bought by E.ON of Germany, could
follow Enron's lead.
Power trading is the sale of electricity as a commodity - a market that has
developed over the past decade and was given greater impetus in the UK when
the New Electricity Trading Arrangements (NETAs) were introduced in March
this year. The NETA system is a wholesale market which allows companies to
balance their books when they trade power.
Electricity can be bought and sold according to a variety of factors, such as
how it is generated and when it is used. Utility companies can use power
trading to better manage their price risks, for example by buying
gas-generated electricity on the market if the costs of generating their own
energy from other sources is too high.
As well as speculating on future prices, companies can generate additional
revenues by selling risk-management services to smaller utilities and other
firms.
SSSB believes traded volumes of electricity in the UK will eventually be five
times the actual consumption of the country. It says Innogy, which owns the
retail business npower, is slightly ahead of PowerGen in the power-trading
market.
"Companies can use [power trading] as a clever way to add value to their
existing assets," said Daniel Martin, a utilities analyst at SSSB. "If they
are successful, I can see 500 million euros, potentially more, added to their
value." But he said the utility firms will have to be more transparent in
telling the City how much they raise from power-trading activities if they
want to see the benefits on their stock prices.
Brian Senior, director of trading and asset management at Innogy, said:
"[Power trading] is helping us extract maximum value from our asset base, and
is also a source of extra revenues.
"We are looking at the possibility of moving into continental Europe."

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

Finalise terms of reference for Enron probe in 8 days:Munde

07/15/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, Jul 15 (PTI) Bharatiya Janata Party (BJP) national vice-president
Gopinath Munde Sunday demanded that the terms of reference for the judicial
inquiry appointed by the government of western state of Maharashtra into the
Enron controversy should be finalised within eight days instead of one month.
Addressing a press conference here, Munde demanded that the government
announce the terms of reference during the monsoon session of the state
legislature.
Demanding that the final report of the judicial probe be submitted within
three months, he urged the ruling Congress and the NCP not to "politicise"
the issue.
The leader of the oppostion in the state assembly, Narayan Rane, alleged that
by merely instituting a judicial probe without declaring the terms of
reference, Chief Minister Vilasrao Deshmukh was "taking his allies for a
ride".
Deshmukh had announced a judicial probe into various aspects of the power
purchase agreement signed between US energy major's Dabhol Power Company and
state electricity board (MSEB) on July 11.
The terms and reference of the probe would be decided by co-ordination
committee of the Democratic Front government within a month, he had
announced.
(THROUGH ASIA PULSE) 15-07 2001

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

A Section
Karl Rove, President's Focus Engineer, Finds Self in Spotlight; Eyes of Bush
Critics Turn to Key Adviser If the Message Blurs
Dana Milbank
Washington Post Staff Writer

07/15/2001
The Washington Post
FINAL
A04
Copyright 2001, The Washington Post Co. All Rights Reserved

Karl Rove, the political brain who brought President Bush to the White House,
is all about focus. "You really have to focus," he would say during the
presidential campaign. Now, as Bush's senior adviser, he says his biggest
worry for the administration is "losing focus."
So why is it that Rove's name is often the one mentioned these days when the
White House message is blurry? Last week, Rove popped up in the context of an
arrangement between the White House and the Salvation Army over a regulation
the charity sought to exempt it from workplace bias laws based on sexual
orientation.
Before that, Rove attracted attention for his role in the Bush decision to
suspend Navy practice bombing on the Puerto Rican island of Vieques in what
was seen as a bid to appeal to Hispanic voters. Then there was the episode in
which Rove participated in policy discussions that could have affected Enron
Corp. and Intel Corp., two companies in which he has substantial holdings.
Rove has become a lightning rod for critics of the administration, turning up
when there's a controversial matter the White House would rather avoid. When
Sen. James M. Jeffords (Vt.) quit the Republican Party, Rove's pressure
tactics came into question. In discussions over stem cell research, Rove has
been present, voicing worries that federally funded research using human
embryos would cost Bush antiabortion Roman Catholic voters. In everything
from judicial appointments to policy toward Sudan, Rove has made his presence
known.
Why the bull's-eye on Rove's forehead? Partly, it's because Rove, by choice,
is involved in most everything the White House does. It's also because he's a
political adviser rather than a seasoned government official, so his actions,
regardless of motive, seem tainted to some outsiders. Liberals are eager to
demonize him because he is the White House's principal liaison to
conservative interests. And Rove, for his part, enjoys a larger-than-life
reputation and seems to relish combat.
The embarrassments that have come from Rove's actions demonstrate the
pitfalls of having a political strategist in a dominant position in a White
House. But Rove's omnipresence also gives the president assets that, Bush
allies say, have made the Bush presidency successful. Rove ensures that the
president keeps the crucial backing of his conservative base. "He's the one
conservatives feel comfortable in calling and feel that when they air their
concerns they're speaking to a guy who understands their language," said Ken
Connor of the conservative Family Research Council.
Rove's White House colleagues say the senior adviser is merely doing his job
by working with constituencies. "It's a completely bogus rap," Bush's deputy
counselor, Daniel Bartlett, said of the Rove criticisms. "It's part of Karl's
core responsibility to speak with these outside groups."
Some former Clinton administration hands said Rove, 50, is making matters
worse by involving himself so visibly in so many issues. "When you're in the
middle of a new administration and come to town, you have a big blue-dot
target painted on your back," said James Carville, Bill Clinton's top
strategist in 1992. "It seems Karl has tried to paint his orange. He seems to
sort of welcome the fire."
Former Clinton staff chief John D. Podesta said that while Carville did not
take a job in the Clinton White House, Rove is applying the anything-goes
rules of politics to governing. "You've got a White House political director
who seems to have enormous influence on issues of life and death, like stem
cells," Podesta said. "His range of authority is over things normally done by
the chief of staff or the national security adviser."
But Bush's outside strategists said keeping a political animal in his inner
circle is the president's source of strength. GOP operative Ralph Reed said
Clinton would have been better off putting Carville in the White House. "When
the senior political strategist to an incoming administration is pushed to
the periphery, it often has devastating consequences," Reed said. "Had Lee
Atwater lived and had the role in the first Bush White House that Karl Rove
has in this administration, I personally believe that administration would
have had a better shot at reelection."
Last week's Salvation Army flap shows the pitfalls of having a top political
adviser like Rove so heavily involved in policymaking, but it also shows how
Rove has been able to secure for Bush the crucial support of the GOP right
during his first six months.
Congressional staffers said they heard two different messages coming from the
White House over the faith-based initiative. John J. DiIulio Jr. and his
White House Office of Faith-Based and Community Initiatives, they said, was
seeking to build a consensus among lawmakers, including Democrats. The
legislation retained the 1996 "charitable choice" law's prohibition on
proselytizing, while requiring groups to make any religious activity
"voluntary" and "separate from the program funded."
That change impressed Rep. Barney Frank (D-Mass.). "They did write it in very
strong language that says you cannot use this money to do anything
religious," he said.
But some conservatives balked at the change, arguing that charities would be
even more restricted than under the 1996 law. "What's sad about it is Bush is
laying out the principles very well, but the details belie the principles,"
said Marvin Olasky, an original architect of Bush's proposal who has become
an opponent. "This makes it worse, makes it more difficult for any
evangelical or conservative Catholic or Jewish group to be involved."
While DiIulio irked some conservatives, another group of White House
officials, including Rove, sought to please the right by pushing the measure
through the House even as it stalled in the Senate. This infuriated
Democrats. "It's been very clear that on the one hand John DiIulio and his
staff want to get a bill done and are reaching out to Democrats to reach
consensus," a Democratic aide said. "On the other hand, the White House
legislative strategy does not seem to reflect that kind of cooperative
spirit."
But conservatives were soothed. Michael Horowitz, a scholar with the
conservative Hudson Institute who opposes the faith-based initiative because
he says it would dilute churches' spirituality, said DiIulio's office has
"the worst strategic judgment." But Rove has compensated for that. "What the
White House badly needed was somebody to keep in touch with its conservative
base," Horowitz said. "Karl Rove anchors them to his base and he's superb at
that. His sympathy for the conservative base is extraordinary."
The Salvation Army sought to benefit from that sympathy when a lobbyist it
hired who was friendly with Rove asked the senior adviser for help. Rove
asked the Office of Management and Budget to look into the request. The White
House rejected the proposal last week when the request, and claims from the
Salvation Army of a "firm commitment" to act on it, became public.
As it turns out, House Republicans, working with several White House
officials, had already made changes to the House legislation two weeks ago
that gave the Salvation Army most of what it wanted: protection from cities'
domestic partnership benefit requirements.
This protection comes in a provision allowing all grant programs covered
under the faith bill to be turned into vouchers. "Indirect assistance through
vouchers rather than a city contract would spare the [Salvation] Army and
other religious groups the burden of the domestic partner benefits," said Ira
Lupu, a George Washington University law professor. House Democrats also
argue that the law indirectly allows gay hiring discrimination in a provision
that says a religious organization will be free from state and local
interference in the "definition, development, practice, and expression of its
religious belief."
Democrats have been muted in their complaints about such provisions. But
there was no such restraint when it came to Rove's involvement in the
initiative, particularly over the Salvation Army flap. Terence McAuliffe, the
Democratic National Committee chairman, fired off a statement demanding Rove
"come clean." Wrote McAuliffe: "The White House is arrogantly evading
questions about its backroom deals, and hiding the part played by Bush's top
aides."
Mary Matalin, a senior Bush aide, said McAuliffe cannot argue with the
legislation on the merits so is using Rove as a target. "It's his inability
to engage on issues," she said. "For Terry to succeed, they need to create
villains. They had Newt Gingrich, Ken Starr and Tom DeLay, and now they're
trying Karl -- and it's not going to work."

http://www.washingtonpost.com

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

NEWS
8 firms plan building vast interstate gas pipelines / But energy experts say
other states could tap into supply first
Bernadette Tansey
Chronicle Staff Writer

07/15/2001
The San Francisco Chronicle
FINAL
A.1
(Copyright 2001)

Six months after Californians were stunned to find their winter heating bills
soaring by hundreds of dollars, energy companies are moving ahead with plans
to build pipelines into the state that could lead to a flood of cheaper
natural gas and give consumers a break.
At least eight companies have proposals in the works to build interstate
pipelines, running thousands of miles, from gas fields in Canada, the Rocky
Mountains and the Southwestern United States to California.
"The California economy is very strong, and it's going to continue to grow
and expand," said Jim Macias of Calpine Corp., which is developing plans for
a pipeline that would run from the Southwest to a terminal in Antioch. "We
have adequate pipeline capacity for today, but we have to build capacity for
the future."
The prospect of vastly increased pipeline space for natural gas, coupled with
a building boom in California of gas-powered electricity plants, could head
off crises such as the one that beset the state last winter. As the weather
turned cold, tight space on gas pipelines meant big heating bills for
customers and huge debts for utilities and the state that had to buy
electricity produced by gas-fired plants.
INSURANCE AGAINST BLACKOUTS
Gov. Gray Davis has touted the brace of new plants as California's insurance
against blackout threats and price increases. Just in the past month, Davis
has thrown the ceremonial switches on three new power plants in California,
all of which run on natural gas.
"California is building its way to total energy self- sufficiency," Davis
said Monday at opening ceremonies for Calpine's Los Medanos Energy Center in
Pittsburg.
But there's a risk to putting so many eggs in one basket, say some industry
experts. California's rush to construct the new gas turbines -- at least 16
will come online by 2004 -- is being repeated across the nation by states
equally attracted by the environmental benefits and potential cost savings of
gas.
Those states will want to tap into pipelines being built across their
territory for their own needs, said Joe Benneche, a forecasting expert with
the U.S. Energy Department. Coastal states such as California and Florida
might not get their fill from the leftovers.
"They are at the end of the line," Benneche said. "It does make them more
vulnerable."
And even as they welcome the added megawatts from new power plants, some
California officials are wary of hitching the state's energy future to market
players that have interests in both natural gas and electricity.
"These are horizontally integrated companies that are deciding every day
based on arbitrage spreads whether they are going to sell a megawatt or a
molecule of gas," said Loretta Lynch, president of the state Public Utilities
Commission.
STUDYING GAS PRICE HISTORY
At the state's urging, federal officials are looking into why gas prices at
the California border leaped last winter to levels as much as 10 times the
national average. State regulators have accused El Paso Corp., a Texas energy
firm, of restricting gas shipments through its pipeline into the state to
raise prices -- something El Paso denies.
Generators said the price run-ups for gas justified equally huge increases in
the price of electricity they sold to the utilities and, later, the state.
And even as blackouts loomed, some firms like El Paso upheld their right to
divert fuel from generators and sell the gas instead if the price was right.
Lynch said the state needs to come up with better ways to prevent companies
from manipulating the price of gas, to increase inventories and to promote
competition so prices stay under control.
Even some industry officials are urging caution over the rush to natural gas
as the fuel source for as much as 90 percent of the country's new generation.
"It makes sense to maintain a balanced portfolio," said Neil Brown, a
spokesman for PSEG Power, a Newark, N.J., firm investing in both natural gas-
and coal-powered plants. "One of the reasons California did experience
problems was its reliance on gas and hydroelectric power. Disruptions in both
those sources contributed to supply problems."
Although geological research indicates that North American gas reserves
should be adequate for 50 to 70 years, that doesn't protect individual
regions from temporary shortages that can cause devastating price spikes,
said Benneche, the Energy Department forecaster. The key to preventing those
shortages is to build enough pipelines on time to meet the need, he said.
WAIT-AND-SEE ATTITUDE
Although energy firms, including Enron, El Paso and Sempra Energy, are
talking about a range of projects to supplement the five major interstate
lines into California, only two pipelines so far have received final approval
or have been completed, said Bill Wood, a gas expert for the state Energy
Commission.
Some companies will wait and see what demand looks like before making a final
decision on whether to build, he said.
"They don't want to overbuild," Wood said. "You only get paid for what you
use."
But maintaining extra capacity for use by competing gas marketers is
essential to hold down prices, Wood said. Otherwise, he said, a limited
number of marketers holding pipeline space can jack up rates.
Taking a cautious approach, Pacific Gas and Electric Corp.'s gas transmission
affiliate pipeline has applied to expand its capacity from Canadian gas
fields to the Oregon border by about 10 percent. Most of that will probably
be siphoned off by new gas-fired plants in Washington and Oregon, Wood said.
But the rising demand is attracting new players aside from traditional
pipeline companies operating in California. San Jose's Calpine sees a
robust-enough market to invest in its own pipeline project, if only to fuel
the 12,000 megawatts of gas-fired generating capacity the company plans to
build in California by 2005.
"We're making a big investment in gas-fired plants in California," Macias
said. "So we better be darned sure there's going to be an adequate supply
that can be transported at a reasonable price."

CHART; Caption: Chronicle Graphic

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

Business
Sale withdrawal raises Mitie hopes
Nick Hasell

07/14/2001
The Times of London
News International
Final 2
45
(Copyright Times Newspapers Ltd, 2001)

THE sudden withdrawal of a large sell order stoked hopes that Mitie Group
will emerge with an upbeat trading statement when it reports full-year
figures on July 23.
Shares in the maintenance and building services group have fallen from 190p
last December, despite optimism that the company will benefit from pledges of
increased Government spending on schools and hospitals, some of its biggest
clients. Mitie also has a strong record of earnings growth, and gave a
positive presentation to analysts in its recent year-end briefing.
That meant Mitie followers were relieved yesterday after an unnamed broker
unexpectedly pulled an overhanging sell order. The shares rallied 8 1/2p in
response to close at 142 1/2p. The FTSE 250 faded 5.1 points at 6,163.8.
Tour operators suffered on a first-half profit warning from Switzerland's
Kuoni, which complained of problems in Scandinavia. Airtours, the biggest
player in the region, lost 25 1/2p at 240p. First Choice Holidays fell 6p to
140p.
Incepta, the public relations agency that issued a cautious annual meeting
statement last week, gave up 2 1/2p to 51p as UBS Warburg moved from "buy" to
"hold". Richard Nichols, finance director, has bought 20,000 shares at 53p.
Hopes of a bullish update from SIG lifted shares in the building materials
distributor a further 4p to 224 1/2p. However, some dealers are sceptical,
suggesting that the company may have suffered from a slowdown in UK
commercial property and a weak German construction market. Half-year figures
are due on September 3.
Miller Fisher, the loss adjuster that terminated talks on a possible offer in
April, tumbled 2 1/4p to 7 1/2p. Numis Securities has a sell recommendation
on the shares with an 8p price target, and expresses concern at a recent
client defection.
Mettoni Group, the AIM-listed provider of call centre technology, recovered 5
1/2p at 40 1/2p as the company reassured that first-half pre-tax profits
would be in line with expectations. The shares fell sharply on Thursday on
what dealers described as a badly-executed sell order.
Paladin Resources was the most active small-cap market after HSBC Securities
placed the 20 per cent stake held by Enron, the US energy group. Enron bought
into the independent oil producer at 27p in 1998, and sold its 41 million
shares yesterday at 44p. With the overhang out of the way, Paladin improved 4
1/2p at 49p.

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


I have taken what I believe this is the most recent form of the GE turbine
contract, changed to reflect the difference in purchaser, and filled in some
of the blanks.  I have compared it against the Delta redline that Rick sent
me this afternoon, after having accepted Delta's proposed changes for the
purpose of running the comparison.   The notes included are placeholders
since I wasn't clear if these items will change with the equipment swap.

GE is also reviewing Salmon Energy Agreeement version 2.

redline

Thanks,

Kay


Greg,

            The kids are into typical toys and games.  Justin likes power
ranger stuff.  Kelsey really likes art.  Books would also be good.

            We are spending Christmas in Houston with Heather's sister.  We
are planning to come to San Marcos for New Years.

            How long will you stay?  what are your plans?  Email me with
latest happenings with you in the big city.

keith


Tom: Can you quickly tell me if the breakout of Algonquin will occur anytime
soon. Brad


---------------------- Forwarded by Amy Fabian/Corp/Enron on 08/14/2000 02:32
PM ---------------------------

Chris Long
08/10/2000 06:12 PM

To: Mark E Haedicke/HOU/ECT@ECT, Steven J Kean/HOU/EES@EES, Richard
Shapiro/HOU/EES@EES, Mark Taylor/HOU/ECT@ECT, Joe Hillings/Corp/Enron@ENRON,
Cynthia Sandherr/Corp/Enron@ENRON, Tom Briggs/NA/Enron@Enron
cc: raislerk@sullcrom.com, Allison Navin/Corp/Enron@ENRON

Subject: CFTC Reauthorization

At his request, I met Lee Sachs, Assistant Treasury Secretary, who had
requested the meeting after a brief conversation recently.  Lee said that
senior-level negotiations led by Secretary Summers were initiated last week
between the CFTC and SEC and that progress was being made on the single stock
futures issue (the major issue postponing movement of the legislation).

As you know, the House completed committee work on HR 4541 before it
recessed.  The bill will now is pending before the Rules Committee where
differences will be worked out between the three different Committee versions
(Agriculture, Commerce, and Banking).  The Senate Agriculture Committee
passed out the Senate version in July.  However, the bill is not moving
quickly in the Senate due to Senator Phil Gramm's desire to see significant
changes made to the legislation (not directly related to our energy
language). Last week at the Republican Convention, I asked the Senator about
the bill and he said they were working on it, but much needs to be changed
for his support.  More telling perhaps, were Wendy Gramm's comments that she
would rather the current bill die if a better bill can be passed next year.
What this means is that we must, at the least, remove Senator Gramm's
opposition to the bill to move the process and more importantly seek to gain
his support of the legislation.

Lee Sachs message was just that.  I told Lee that we shared his desire to
move the legislation as long as it contains a full exclusion for all
non-agriculture commodities (including metals).  He said that we would have a
difficult time defending the metals provision politically. But, Lee said  "we
would not find Treasury opposition to the House Commerce Committee language"
(which includes favourable language on energy and metals).   This is a
positive development, because it isolates the CFTC from its key defenders and
I hope ensures no veto threat on our issues.  However, I do not expect
Treasury to be vocal in support of our position.  It is clear that
Congressional leaders and the Administration want to get this bill done this
year and there remains a good opportunity for enactment.

However, with less than 20 or so legislative days left, we need Senator Gramm
to engage.  A call from Ken Lay in the next two weeks to Senator Gramm could
be an impetus for Gramm to move his staff to resolve the differences.  Gramm
needs to fully understand how helpful the bill is to Enron.  Let me know your
thoughts on this approach.   I am prepared to assist in coordinating the call
and drafting the talking points for a Ken Lay/Sen. Gramm call.


This is just too funny not to pass on!  Happy Monday!

Why I Fired My Secretary

Two weeks ago was my 45th birthday, and I wasn't feeling too hot that morning
anyway. I went to breakfast knowing my wife would be pleasant and say "Happy
Birthday," and probably have a present for me. She didn't even say "Good
Morning," let alone any "Happy Birthday." I thought,"Well, that's wives for
you. The children will remember." The children came in to breakfast and
didn't say a word. When I started to the office I was feeling pretty low and
despondent. As I walked into my office, my secretary, Janet said, "Good
Morning Boss, Happy Birthday." And I felt a little better; someone had
remembered. I worked until noon. Then, Janet knocked on my door and said,"You
know, it's such a beautiful day outside and it's your birthday, let's go to
lunch, just you and me." I said, "By George, that's the greatest thing I've
heard all day.  Let's go." We went to lunch. We didn't go where we normally
go; we went out into the country to a little private place.  We had two
martinis and enjoyed lunch tremendously.  On the way back to the office, she
said,"You know, it's such a  beautiful  day. We don't need to go back to the
office, do we?" I said, "No, I  guess not." She said, "Let's go to my
apartment." After arriving at  her apartment she said, "Boss, if you don't
mind, I think I'll go into the  bedroom and slip into something more
comfortable." "Sure,"  excitedly replied. She went into the bedroom and, in
about six minutes, she came  out carrying a big birthday cake, followed by my
wife, children, and dozens of our friends. All were singing Happy Birthday...
and there on the couch I sat...

naked.


Eric,

I got it - thank you for looking into it for me.

kc
---------------------- Forwarded by Karla Compean/HOU/ECT on 02/02/2001 01:13
PM ---------------------------

brian_jordan@mcgraw-hill.com on 02/02/2001 11:24:30 AM
To: kcompea@enron.com
cc:
Subject: nov 20 pmw Attachment is free from viruses. ScanMail

(See attached file: pmw1120.pdf)

 - pmw1120.pdf


This seems fine to me.  I have no other questions or comments.  There is a
small issue outstanding re. the Enron Re outside counsel opinion, which I
think LeBoeuf is handling with Bermuda counsel.

Regards

Steve

Mark.Taylor@enron.com on 05/31/2000 10:57:24 AM

To:   Stephen_Kruft@swissre.com
cc:   Lou.Stoler@enron.com
Subject:  Re: BWT Transaction

Thanks for your note.  In reply:

1.  We will change United Kingdom to England in the governing law section.

2.  and 3.  We did switch to the English law form and our form didn't
provide for using securities as collateral.  As you point out, it is likely
that SR will always be in the money and the CSA provides for an unlimited
Threshold for SR at all times so that it will never be providing collateral
under that document.   There are certainly other changes that could be made
to the document with that in mind but in the interest of time we didn't
make much of an effort on that score - our theory was that you wouldn't
mind too much since you would never have to post anything under this
document.

Please let me know if you have any other questions or comments.

Mark

                    "Stephen Kruft"
                    <Stephen_Kruft@sw        To:     mark.taylor@enron.com
                    issre.com>               cc:
                                             Subject:     BWT Transaction
                    05/31/2000 08:56
                    AM

I looked at the EFR-ENA Schedule in connection with Gordon Boozer's
comments.  I see no problems except:

1.  The document is expressed to be governed by the law of the"United
Kingdom."   I have never seen this formulation and think it should say
"England," as I believe there are in fact multiple legal systems (e.g.,
Scottish) within the U.K.

2.  I am not sure why all collateral except LCs was deleted.  Was this
agreed by EFR?  If so, OK.  If not, could the CSA provide for other
collateral as Gordon requested.  It is unusual for SR entities to use LCs
in non-reinsurance situations and would probably cost them less to post
Treasuries.  Here it is of course unlikely that EFR will have to post
anything, since EFR will always be in the money to some extent.

3. Did you switch to the English law form of CSA?

Regards

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Subject: Re: BWT Transaction
To: Stephen_Kruft@swissre.com
Cc: Lou.Stoler@enron.com
X-Mailer: Lotus Notes Release 5.0.3  March 21, 2000
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George Bush, minister of the double negative:  "Not over my dead body" will they raise your taxes.

Does that mean yes to tax increases as long as he is alive ?


What's story?  This opportunity to sell short/buy puts?


I will try to get some... I am having troubles with my computer today.....

Have a Happy Holiday!

MC

 -----Original Message-----
From: 	<devin.c.hall@us.pwcglobal.com>@ENRON
Sent:	Tuesday, December 18, 2001 9:01 AM
To:	Carson, Mike
Subject:	RE: update

Mike,

Do you have any pictures of Harris that you could email me?  Laura and I
would like to see if he has his dad's good looks (ha ha).

Devin

To:       Mike.Carson@enron.com @ INTL
cc:
From:     Devin C. Hall/US/TLS/PwC
Date:     12/17/2001 09:11:54 AM
Subject: (Document link: Devin Hall)     RE: update

Mike,

Thanks for the note, it was good to hear from you.  Quick update on us,
Laura and I bought a house in late September.
Our new address is 14501 W. 86th Street, Lenexa, KS, 66215.  Our house is
located in the Cedars development just off
of 87th St. and Lackman Rd.   Is this close to where you used to live?  All
of our family is doing well, we've  been getting
ready for Christmas (tree, lights, etc.).

I hope everything goes well with your work!

Devin
To:       Devin C. Hall/US/TLS/PwC@Americas-US
cc:
From:     Mike.Carson@enron.com
Date:     12/17/2001 07:19:26 AM
Subject:  RE: update

Yeah,  it has been a little hectic as of late.  I am still at Enron(for
now).  I have been retained as part of the trading organization to stay
with this entity to see if it sells.  We go to auction on Monday and will
see what happens??  I guess the interested parties are UBS Warburg and
Citigroup.  Good companies, but I will have to see what the $offer$ is for
me personally.  Anyway, the family is doing GREAT and is looking forward to
Christmas.  Harris is about 14mos now, so he kind of understands the whole
presents thing, which should be fun!

Have a happy holiday!

MC

    -----Original Message-----
   From:   <devin.c.hall@us.pwcglobal.com>@ENRON
   Sent:   Sunday, December 16, 2001 11:56 PM
   To:     Carson, Mike
   Subject:  update

   Mike,

   I haven't heard from you in a while and I was wondering how the
   bankruptcy
   has affected you.  Please send me a note or call me at work(816)
   218-1606
   or at home (913) 642-9758.  Hope you're doing well!

   Devin
   ----------------------------------------------------------------
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   taking of any action in reliance upon, this information by persons or
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   received
   this in error, please contact the sender and delete the material from
   any
   computer.

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate
and may contain confidential and privileged material for the sole use of
the intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
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Thank you.
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The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
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taking of any action in reliance upon, this information by persons or
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this in error, please contact the sender and delete the material from any
computer.


--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=GSTOREY>
To: Storey, Geoff </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gstorey>
Date: Sunday, October 28, 2001 2:42:01 GMT
Subject:


wow, that's blasephemous, dude.

hey, is there any chance that you might be able to pick up some instruments
at Peacock today?  I was going to do it, but now have to go so fucking
Sacramento.  need to get the cameron's guitar so you guys can take with you
to Colorahdee.

	"Scott Laughlin" <scottwl@hotmail.com>
	07/18/2001 08:27 PM

		 To: cameron@perfect.com, jdasovic@enron.com
		 cc:
		 Subject: Re: A Little Del History

Nice quote, sounds a bit like Prentice's, only with Herb.

And by the way, fuck Earl!

>From: Prentice Sellers <psellers@pacbell.net>
>To: Cameron Sellers <cameron@perfect.com>, Scott Laughlin
><scottwl@hotmail.com>, jdasovic@enron.com
>Subject: A Little Del History
>Date: Wed, 18 Jul 2001 01:03:55 -0700
>
>McCoury was inspired early on by his mother, who played guitar, piano and
>banjo. His older brother taught him how to play guitar, but McCoury says it
>was "when I heard Earl Scruggs, that's what really turned me on to
>playing."
>

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com


Julia:  don't do anything yet as I am putting together the package for this
afternoon.  Sara

	Julia H Chin@ENRON
	07/25/2000 08:59 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Re: ENE positions

sorry i did not get a chance to revert back to you earlier.  was out in new
york.
ok -- i will work on getting resources to help.
however, could you confirm with everyone that you have NO OTHER deals other
than what jill has listed?  preferably before our meeting this afternoon?
many thanks.

From: Sara Shackleton@ECT on 07/21/2000 01:56 PM
To: Rex Rogers/Corp/Enron@Enron, Julia H Chin/NA/Enron@Enron, Jim
Armogida/Corp/Enron@ENRON, Scott Sefton/HOU/ECT@ECT
cc:

Subject: ENE positions

All:  I am comparing this list to mine but Jill's certainly looks more
comprehensive!  Jill said she may not have signed confirms, etc. but we
should get copies of all live equity deals.  I don't have paralegal
capability for this work at the moment.  Sara

Julia:  Could you please call me when you receive this message?
----- Forwarded by Sara Shackleton/HOU/ECT on 07/21/2000 01:51 PM -----

	Jill Erwin
	07/21/2000 01:47 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: ENE positions


Start Date: 1/24/02; HourAhead hour: 7;  HourAhead schedule download failed. Manual intervention required.


I'd like to thank everyone involved in the efforts since Friday night! I know a number of you stayed through the night to get us in good shape for this morning. Well done especially to those people. Great teamwork.

Its outstanding how much effort everyone has put into this, and I look forward to seeing the completion of the testing tomorrow.

See you there!

best regards

Steve

-----Original Message-----
From: Henry, Jane Hilburn
Sent: Sat 1/12/2002 3:23 PM
To: Stock, Steve; Johnson, Jeff; Schomer, Chris; Smith, Regan M.; Ballmer, Charles; Larkin, Brian; Newland, William; Patel, Piyush; Ward, Bob; Brewer, Charles; Tang, Mable; Charbonnet, Clement; Matson, Randy; Nat, Steve; Nommensen, Dave; Merrell, Brad; Ogden, Arlene; Chitradurga, Sundar; Jia, Winston; Luu, Duong; Poston, David; Powell, John D.; Ramesh, Ganapathy; Rao, Ramesh; Warner, John; Wei, Zhiyong; Dolan, Michael; Barber, Michael; Gubser, Marlin; Dziadek, Keith; Sanborn, Brandee; Sanvido, Terry; Constantine, Chris; Pua, Cornelio; Wang, N. Jessie; Simpson, Stephen; Hall, Rich; Cheng, John; Shishido, Scott; Saleem, Aftab; Krishnaswamy, Jayant; Brennan, Ryan; Pullicino, Marcus; Schmidt, Mark; Renaud, Todd; McNair, Darren; Qavi, Faheem; Deleon, Roberto; Beyer, Troy; James, Matthew; Martinez, Bob; Yanowski, Tommy J.; Conley, Tom; Cinelli, Steve; McKeel, Richard; Harmon, Kenneth M.; Stevens, Wilford; Smith, Bruce; Fortney, Bill; Wong, Jeremy; Lim, Francis S.; Yang, Sean; Dronet, David; Bharathi, Jaikishore; Ray, Edward
Cc:
Subject: Saturday Update

We have completed the Estate migration.  There are a few outstanding issues with EnPower that Dave Poston's team will resolve, but I have been told that they are minor.

We will still have the 4:00 PM today and 12:00 PM tomorrow checkpoints on the Bridgeline for informational purposes.

Please feel free to call my cell with any additional concerns: 713-515-1601.

-Jane


Attached is the assignment and contribution agreement for your review.  I
would like to get your feedback prior to wide circulation.

Note:  We are still working with EE&CC to put a basic construction agreement
in place for assignment to the LLC.  ECS retains payment obligation under the
construction agreement even after assignment into the LLC.  Thanks for your
help.


Amerex

May 24
Gas:	29
Power:	57

May 25
Gas:	21
Power:	38


Attached is a write-up on Entex that we have put together for Tom, Jim and
Shankman.  Feel free to share it with the Entex team, but otherwise, please
keep confidential.  If anyone wants more info or has questions or concerns,
let me know.  Thanks.
---------------------- Forwarded by Brenda F Herod/HOU/ECT on 05/16/2000
11:14 AM ---------------------------

	Enron North America Corp.

	From:  Brenda F Herod                           05/16/2000 10:48 AM

To: Thomas A Martin/HOU/ECT@ECT, Jim Schwieger/HOU/ECT@ECT
cc: Sally Beck/HOU/ECT@ECT
Subject: ENTEX

Attached are the revised files.  I understand that you will provide this to
Shankman.  Please let me know if you need anything else from me or if I can
help explain it to Jeff.


A GC for either $ or for one of those Day Spas.

DG


Dear Kevin:

Attached to this email is a current program of speakers/chairs that have agreed or have been invited to participate in the NATURAL GAS INFRASTRUCTURE Conference, co-located with ELECTRIC POWER 2002.

The invitation/confirmation letters have been issued on a case-by-case basis as Conference Management has received the information from you.  We will be sending out a formal confirmation kit to all those participating in the Natural Gas Infrastructure Conference.  The kit will be mailed during the first week of December that will include: conference call information, hotel & travel details, instructions for submitting final papers, complementary registration information, etc).  Presenters are asked to turn in an abstract for publishing on the web at www.electricpowerexpo.com <http://www.electricpowerexpo.com/>.  Abstracts are due November 30.  Presenters should email a one to three paragraph abstract to carries@tradefairgroup.com <mailto:carries@tradefairgroup.com>.    Final papers will be due January 15, 2002.

If you have not already done so, please send a description of your session for the conference brochure.  A brief, two - three sentence description will be sufficient.  Please email the session descriptions by Tuesday, November 20.  Email carries@tradefairgroup.com <mailto:carries@tradefairgroup.com>.

P.S. The conference brochure is scheduled to print on November 26!  If you have any new information that needs to be updated regarding your session, please notify me now, and I will make sure it gets printed correctly in the conference brochure.  Please review the attached program for the NATURAL GAS INFRASTRUCTURE Conference (as indicated in the above paragraph)

We have enjoyed working with you on the NATURAL GAS INFRASTRUCTURE Conference and appreciate all of your hard work and time dedicated to making this conference a success!  We will keep in touch with you over the coming months and look forward to seeing you at the conference next March!

Take care!

Best Regards,

Carrie Shapiro, Conference Manager

ELECTRIC POWER 2002 Conference & Exhibition

% The TradeFair Group

1220 Blalock, Suite 310

Houston, TX. 77055

(713) 463-9595 x 307

(713) 463-9997 fax

carries@tradefairgroup.com <mailto:carries@tradefairgroup.com> <http://www.e-procomseries.com/>


Ashley, here's an ad in Word format.  If Deron could post it at Hewitt, I
would be most grateful!


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/30/2001
05:58 PM ---------------------------

"John D. Martin" <J_Martin@baylor.edu> on 03/30/2001 12:12:50 PM
To: vkamins@enron.com
cc:
Subject: Good morning/afternoon

Vince,

one of my colleagues here at Baylor is writing a book about "the business
of heaven" in which he interviews prominent business leaders.  Bob Darden
is his name and he's a former journalist and nice guy.  He would like to
contact Ken Lay about being one of his interviews.  Do you think this is
possible?  If so, could you give me an address/phone numbers that Bob might
use to contact Ken's secretary about setting up an interview?

If this is in any way "not ok" please just say so.

See ya,

John

>Date: Fri, 30 Mar 2001 11:35:03 -0600
>From: Robert Darden <rfd3@flash.net>
>Subject: Yo!
>X-Sender: "Robert Darden" <rfd3@pop.flash.net> (Unverified)
>To: J_Martin@baylor.edu
>Organization: The Door
>X-Mailer: Mozilla 4.04 [en]C-FLASHNET  (Win95; I)
>
>Hi John -- I enjoyed our meeting yesterday. This looks VERY promising.
>Meanwhile, as I mentioned at the table, I'm getting a little nervous
>about the book that is due June 1.
>One of the names on our "wish" list of interviewees for "The Business of
>Heaven" is Ken Lay at Enron.
>Would it be possible for you to give me a good address and phone number
>for Mr. Lay's office?
>And may I mention your name in the cover letter?
>I would be forever indebted. I might even buy the next lunch.
>Bob
>P.S. Thanks for sharing your concerns about church yesterday, too. I'm
>genuinely sorry things didn't work out better and feel more than a
>little embarrassed that I didn't work harder to make you guys feel more
>welcome and connected. On the other hand, please know that Mary and I
>will always love you and consider you both friends. I know you'll be
>happy at Lake Shore -- even as we miss you at 7th!
>
John D. Martin
Carr P. Collins Chair in Finance
Finance Department
Baylor University
PO Box 98004
Waco, TX 76798
254-710-4473 (Office)
254-710-1092 (Fax)
J_Martin@Baylor.edu
web:    http://hsb.baylor.edu/html/martinj/home.html


It sounds premature at this time for ISDA to put on an energy seminar in
Japan.  Do you agree?   Mark

	Jane McBride@ENRON
	12/13/2000 02:26 AM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc: Alan Aronowitz/HOU/ECT@ECT, Jonathan Whitehead/AP/Enron@Enron
		 Subject: Re: Energy Seminar in Japan

Enron Japan is also planning an energy conference in April / May of next year
to promote our energy business here in Japan.  The arrangements are still
very much at the preliminary stage so are confidential which is why I did not
copy this email to the ISDA person.  (As you would suspect we are still some
way off being able to use ISDA documentation for any of our energy
transactions, which are tending to be physical transactions.)

Jane

	Mark E Haedicke@ECT
	2000/12/13 07:38

		 To: Jane McBride/AP/Enron@Enron, Alan Aronowitz/HOU/ECT@ECT
		 cc: rainslie@isda.org
		 Subject: Energy Seminar in Japan

Jane:

ISDA is planning an energy seminar in Tokyo in mid-May.  We have heard there
may be an energy seminar in March or April in Tokyo.  Have you heard of the
earlier seminar?  We are trying to decide whether it makes sense to go
forward on the May seminar.  Could you look into this and talk to the traders.

Thanks for your help.

Regards,

Mark


Hi Jeffrey,

The launch party for the Houston Entrepreneurs Foundation is only 1 week away.   The event is at Ruggles, Enron Field in the late afternoon/evening of November 14.  We expect it to be a fun event and hope that you will join us. Below is a link where you can find out more details about the event and a form to RSVP.

http://www.houstonfirst.org/movie.html

I did not see your name on the RSVP list and wanted to remind you to please RSVP if you plan to attend. If you do not need additional information and would like to RSVP directly, you can send an email to rsvphef@yahoo.com or call (713) 830-3388.

We look forward to seeing you on the 14th!

Regards,

Michelle Weisblatt and Billy Ladin

_________________________________________________________
Do You Yahoo!?
Get your free @yahoo.com address at http://mail.yahoo.com


Enron may have to pay the CAISO $86 million in erroneous imbalance energy charges due to an EES data submission error.  The CAISO would then pay us the money back on June 19th.  I have already discussed this with a few people and am documenting a basic summary for those people who will have to get involved over the next few days if the CAISO board determines that we have to pay the money.

Here is the summary:

EES submitted meter data to EPMI in kWh rather than MWh for one or more accounts for March CAISO activity.
This made EES appear to have underscheduled their load in March by a large amount.  The charges associated with this underscheduling total approximately $86 million.
EES has subsequently submitted the proper data which has been forwarded to the CAISO.
CAISO staff is fully aware of the error and understands that we don't owe them $86 million.  However, the tariff states that we should do a preliminary settlement on the data that was submitted and then a final settlement using the accurate data.
Per the tariff, we would owe them $86 million on Thursday May 31st at 10:00 AM PPT.  They would then refund the money to us on June 19th when Final Settlement payments go out.
The CAISO staff is taking two proposals to the CAISO Board today.  The Board could elect to do either of these, or strictly adhere to the tariff.  The first option is to allow us to re-submit our preliminary meter data with the right data.  The second option would be to pay them the $86 million but to keep it in some sort of escrow account until June 19th when they would pay it back.

Let's hope for the best with the CAISO board meeting today.  I'll will let everyone know what the outcome is and then we can formulate a plan.


The outside lawyer for Northwestern, Marguerite Kahn, would like to speak
with you concerning the structure of the LLC, specifically including the
promissory notes.  Guess I didn't explain it all that well. I asked her just
to call you directly, and gave her your number.

Thanks,

Kay


Attached is our blackline of your NDA.  You may contact me with comments.
Thanks.  Sara

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


Moving along and on schedule. I wll be speaking myself twice and be at the
Seattle meeting for about four days negotiating on the side.
---------------------- Forwarded by Terence H Thorn/ENRON_DEVELOPMENT on
11/14/99 04:23 PM ---------------------------

Terence H Thorn
11/14/99 04:21 PM
To: Rob Bradley@ENRON, Joe Hillings@ENRON, Chris Long@ENRON, Edith
Terry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Lay WTO Speech

Rob has provided everyone a new set of slides for Ken's speech. They want Ken
to speak for 20 minutes.  Once we agree on these we have to put together
talking points for Ken to use. I would like to be at that point this
Wednesday so we have the rest of the week to get feed back fro Ken and
finalize the speech next Monday or Tuesday.

Let me try out some themes.

We need to put energy developments in the context of globalization. The
world's economy is integrating as never before as transborder trade
increases, capital becomes more mobile. technology speeds this process. To
compete in this new arena countries must have access to the most talented
labor, the most advanced technology, and the lowest cost, highest quality
suppliers of goods and services. No where is this more critical that in the
areas of energy production, transportation, distribution and use.

Historically, energy trade has focused on technology to explore, produce and
export energy. In the 1990's the focus shifted to using that energy
internally to fuel the tremendous economic growth experienced by developing
economies. The focus became infrastructure development and inter-regional
trade as governments removed the legal and regulatory barriers to private
energy and infrastructure development. With energy demand increasing at high
rates, the potential for price increases, the need to develop and use new
energy technologies and the related environmental problems associated with
economic development, the next focus must be on opening these same economies
to the world class suppliers and partners which have the intellectual
property, talent, networks and technology to provide the answers to the more
efficient  production, transportation and use of energy. By opening their
economies to an expanded trade in energy services, these countries gain
instant  access to the skills and capabilities that have taken decades to
develop elsewhere.

But it's not just governments that benefit. In the US and Europe today we
have seen an explosion of customer choice in their providers of products,
services, prices and terms.   The service industries have led the way in
providing more value at better prices. This will help economies leverage
their own financial, technological and intellectual capabilities.

Having put the need to have energy services on the WTO agenda I would now
turn the problem of defining the energy services sector.  I don't like the
third chart, Energy Services Overview - it's confusing. I don't know if you
are listing the companies involved in services, in the coalition or what. I
far prefer the type of chart Rachel Thompson uses in her environmental
services presentation on page three: Some examples of environmental goods and
services. We can briefly talk about the historic issues here, but also
forward our recommendations on how energy services should be considered in
the WTO GATS discussions. The inclusion in the next GATS round is not an end
in itself but will start a process that will:

 Clarify the definition of energy services
 Identify the barriers to trade in energy services
 Set the goals for the desired level of market openess
 Establish commitments on transparency, due process and regulatory
implementation

From here we do a summary of global trends, the important role energy
services will play in a globalized economy, how expanded trade in energy
services can be a direct channel for technology transfer. This is the
"win-win" section.

In turning to the slides Rob provided,  I have already mentioned my concerns
about the second slide. The list of members of the coalition can stay- it
represents the depth and variety of businesses in this area. The energy and
infrastructure slides fit the initial story. The energy services megatrend
slide has a long way to go. Maybe we can show the trend: production and
export,  private infrastructure development, and the next step: mass
customization. The privatization slide doesn't go here but I'm not sure what
the point is or how we want to tie privatization to energy services. The
globalization slides need to go earlier if we are to use the story I outlined
but the globalization of energy trade slide is about the trade in
commodities.  It doesn't fit- we are after data on the goods and services
that make this trade happen, not the commodity per se.

The customization is fine- we need to have solid talking points about why
customization of energy services helps economies.  This will be a tough
section- I don't think we have anything in the can exactly on this point. Do
we need new markets for competitive energy?   Energy outsourcing and
information age are fine,  I like the nexus between energy and environment.
The talking points here should focus on this part of the energy services
business.  EES should have lots of talking points in this area. The benefits
slide can be expanded. I don't see the need for the fragmentation slide.
Point?

On the conclusions don't be so threatening. Rather than say must adapt, we
should be talking about the benefits of embracing the new energy market.  Add
a point about rising demand, environment problems, the need to produce and
use energy more efficiently.

.


It has become customary to prepare Unanimous Consents of Directors for many
transactions even if such actions are not required by the relevant By-laws
and/or Certificate of Incorporation.  Please consider carefully whether
Unanimous Consents of Directors are necessary or appropriate in a particular
transaction, i.e., the transaction is a significant transaction or evidence
of authority is required for a legal opinion.  When in doubt, please review
the By-laws and Certificate of Incorporation of the relevant entity and
discuss the matter with a member of the Office of the General Counsel.

Thank you.


Jeff / Michelle / Ken,

Here is the Daily Update for the 7th.

Take care,
Suzanne

 - IGSUpdate.xls