Sorry to hear you're suffering.  I'm flexible on this and can go ahead or
reschedule.  I really would like for all of us to be able to sit down
together and discuss pending matters.  I would be happy to set the lunch
back to later in the week if that works for all.  As things look now, Thurs.
or Fri. lunch are open.

-----Original Message-----
From: Susan.Scott@enron.com [mailto:Susan.Scott@enron.com]
Sent: Monday, December 04, 2000 9:55 AM
To: dttran@duke-energy.com; ccaldwell@velaw.com; Frazier.King@enron.com
Subject: lunch

Sorry but I am not going to be able to make it to lunch today.  Whatever
bug I had last week has gotten worse and I certainly would not want to
expose any of you to this.  It is fine with me if you want to meet without
me, or we can reschedule for later this week.

Kindest regards,
Susan
          ++++++CONFIDENTIALITY NOTICE+++++
The information in this email may be confidential and/or privileged.  This
email is intended to be reviewed by only the individual or organization
named above.  If you are not the intended recipient or an authorized
representative of the intended recipient, you are hereby notified that any
review, dissemination or copying of this email and its attachments, if any,
or the information contained herein is prohibited.  If you have received
this email in error, please immediately notify the sender by return email
and delete this email from your system.  Thank You


From:  Pete

To:  Ken

Date: Friday, October 6, 2000

THE HILL REPORT
A Weekly Newsletter from Congressman Pete Sessions
Week of September 30 - October 6, 2000

This Week in Washington, the United States House of Representatives
continued its work on the appropriations process for funding of the
fiscal year of 2001.  The House passed the conference reports on
the energy, interior and transportation appropriations bills.   We
also passed a continuing resolution agreement that will keep the
government running until all 13 appropriations bills are passed and
signed into law by the president.

On Monday of this week, as Chairman of the Congressional Results
Caucus and a member of the Congressional Cyber Security Caucus, I
toured the high-tech corridor of Boston, Massachusetts today to learn
about high-tech issues such as information security, e-signature
legislation and Internet taxation.

I organized the trip to draw attention to the need for more implementation
of information technology security not only among federal and other
governmental agencies but in the private sector as well.  The Congressional
Cyber Security Caucus exists in part to educate other members of
Congress and government agencies of the vital need for secure information
technology systems.

The trip came on the heels of a recent General Accounting Office
(GAO) report to Congress that clearly stated that too many government
operations and assets remain at risk of cyber attack.  The GAO discovered
serious security flaws at major federal agencies such as the Treasury
Department and the Department of Defense - situations clearly indicating
large potential threats to citizen privacy and national security.

Some of the computer systems that run our national defense and military
operations are literally an open target to hostile nations or terrorists
who have cyber terrorism technology.  Both accidental and intentional
attacks on these very systems have been detected and we must take
steps to stop them.

I was joined by Rules Committee Chairman David Dreier (R-CA), Congressman
Tom Davis (R-VA), Congressman Pete Hoekstra (R-MI), Congresswoman
Nancy Johnson (R-CT), Congressman John Sununu (R-NH), Congressman
Jack Quinn (R-NY), Congressman John Sweeney (R-NY), and other prominent
business, community and financial leaders.

We attended a meeting at the Massachusetts Institute of Technology
with area CEOs and high-tech leaders, representing the financial,
communications and technology community.  The discussion was hosted
by TechNet Massachusetts to discuss creating digital opportunities,
H-1B visas, protection of online privacy, and taxation of Internet
transactions.

I believe that any government agency using information systems and
is linked to the outside world MUST have an efficient and secure
information security system.  The potential privacy and security
threat is not something we should take lightly and unfortunately
too many high-level government officials are doing just that!

Any major business, industry or government organization must consider
the threat of cyber attack and how it could be a devastating situation
to customers and citizens.  I can't imagine any of my constituents
being interested in having their private banking information being
made public to anyone on the Internet.  Security and privacy must
be a priority and the businesses and organizations that possess this
sensitive information can not afford the risk of intrusion.

Members also met with high-tech officials, Governor Paul Cellucci
(R-MA), and Lt. Governor Jane Swift (R-MA) to discuss the future
of the information technology industry as well as pending legislation
in Congress designed to address the pressing needs of New Economy
companies.

Earlier this year, I digitally signed the "The e-Contract 2000" with
high-tech America to renew his commitment to promoting the New Economy
in the 21st century.

I pledge to continue my legislative and oversight efforts to remove
the barriers to future innovation, competition, and growth.  Freedom
is the answer, not government intervention.
The New Economy has created limitless opportunities in America today
for consumers, companies and workers alike.

The e-Contract 2000 outlines a number of policies the Republican-controlled
Congress has designed to promote continued growth in the New Economy,
such as "Reducing Taxation, Regulation, and Litigation" and "Promoting
Free Trade and E-Commerce."

Also this year I voted for continued growth in the new economy by
supporting the "Internet Non-Discrimination Act" (H.R. 3709), to
extend the current Internet tax moratorium for an additional 5 years,
through 2006.  The bill passed in the U.S. House of Representatives
by a vote of 352-75.

The tremendous growth of e-commerce has created thousands of high-wage
jobs in this country and has led to countless new choices for Texas
consumers.  The group with me today believes the New Economy should
remain unfettered by burdensome taxes and regulation, to ensure continued
growth and innovation into the 21st century.

Around Texas...

Last Friday, I spoke to the advanced placement Government and Economics
classes at Palestine High School.  I pointed out to them that our
Constitutional form of government is really just an on-going experiment,
and that the continued success of our country depends on the participation
of all of our citizens.  I told them that I am confident that we
can solve every problem in America.  I always enjoy speaking with
enthusiastic young people, and I want to give every student an opportunity
to experience and understand our government.

On Saturday I went to the St. Thomas - Aquinas children's carnival,
and that evening I attended a fundraising event to benefit "For the
Love of the Lake."  This is one of my favorite community projects.
 I have adopted part of the shoreline of White Rock Lake, and would
encourage all of you to come help out at our "Second Saturday Clean-up."
 See my web site for more information.

Tomorrow I will see my friends in Anderson County at the Anderson
County Cattle Baron's Ball.  And in two weeks, I will be in Bryan
for a Town Hall Meeting.  See the notice at the end of this e-mail.

Next week Congress is hoping to finish its work on the budget for
fiscal year 2001.

Have a great weekend! - Pete

>>>  Town Hall Meeting <<<
Brazos and Robertson County Town Hall Meeting
WHEN: Saturday, October 21, 2:00 pm - 3:30 pm
WHERE: GTE Building
501 Industrial Blvd
Bryan, Texas

Have an old cell phone?  Donate it and save a life.......
http://www.house.gov/sessions/calltoprotect.htm

==========================================
Please write to me using the e-mail form on my web site:
http://www.house.gov/sessions/forms/intouch.htm

Please do not use your "REPLY" button to reply to this e-mail.  The
"REPLY TO" address at the top of this e-mail
("email_newsletter@mail.house.gov")
is used by our computer system to maintain our list of subscribers.

Visit my web site at:
http://www.house.gov/sessions

Each week we add a number of new recipients to our mailing list.
 If you accidentally received two copies of this e-mail, please feel
free to recycle the extra copy, or pass it on to a friend.

If you wish to no longer receive this weekly newsletter, please send
an e-mail using the form on my web page with the box beside "unsubscribe"
checked.  The form is located at:
http://www.house.gov/sessions/forms/intouch.htm

If you would like to receive this newsletter at another e-mail account,
or if this e-mail was forwarded to you, and you would like to begin
receiving your own copy, rather than a second-hand dog-eared copy,
send an e-mail using the form on the following page:
http://www.house.gov/sessions/forms/intouch.htm

This newsletter was printed using recycled electrons.
==========================================


Attached is the telephone contact list for all of the Enron personnel that have been working on the California crisis.

For those calling in to the meetings over the weekend:

The call-in number for the 3:00 p.m. (Houston time) Saturday call is:

	888-422-7128
	Code:   610989

The purpose of this call is primarily for the legal team to discuss the due diligence process.

The call-in number for the 3:00 p.m. (Houston time) Sunday call is:

	888-422-7128
	Code:  835002

The purpose of this call is to review the results of the due diligence process and prepare summaries and recommendations to be discussed at the 7:00 meeting.

The call-in number for the 7:00 p.m. (Houston time) Sunday meeting is:

	888-422-7101
	Code:  337268

The purpose of this call is to report the results of the due diligence investigation and make appropriate recommendations regarding the open PG&E positions.

The legal team will be meeting in conference rooms on 38 over the weekend.  I understand that the 7:00 meeting will be held in EB3321.

Please call if you have any questions.

Travis McCullough
Enron North America Corp.
1400 Smith Street EB 3893
Houston Texas 77002
Phone:  (713) 853-1575
Fax: (713) 646-3490


Ok then!  I sent an email and hopefully will hear something shortly.  I will
keep you informed.  Ooh, you'll have lots of money coming to you!

	Kay Mann@ENRON
	05/31/2001 09:22 AM

		 To: Suzanne Adams/HOU/ECT@ECT
		 cc:
		 Subject: Re: Yes, they are deducting for parking

Yes, because they are deducting pretax dollars for parking.

From: Suzanne Adams@ECT on 05/31/2001 09:14 AM
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: Yes, they are deducting for parking

But, did you sign up for the transportation spending account.

	Kay Mann@ENRON
	05/31/2001 09:03 AM

		 To: Suzanne Adams/HOU/ECT@ECT
		 cc:
		 Subject: Yes, they are deducting for parking

How do I get on the list for the form?  Could you pretty please check for me?

Thanks,

Kay


Here is the draft for distribution.  In addition to the customer-friendly
"looking forward to meeting with our business partners" language I know
you'll include, I'd suggest including something like the following:

Attached are drafts of the proposed tariff provisions (including the form of
Transport Option Amendment) and a filing letter.  We are providing these
draft documents to you in advance of filing them with FERC as part of a
good-faith effort to resolve any remaining issues with our shippers prior to
filing.  The drafts are for purposes of discussion by workshop attendees
only, and we ask that you not distribute them to persons outside your
company.  Additionally, while we hope that these drafts are close to being in
final form, they are of course subject to revision and final management
approval prior to filing with the Commission.


Good Morning Marnie -

I have received the information that I needed to officially submit my request
for 1/2 vacation Friday.  If this is not feasible, please let me know.

Thanks
dd
---------------------- Forwarded by Dana Davis/HOU/ECT on 10/17/2000 09:41 AM
---------------------------

	Enron North America Corp.

	From:  Dana Davis                           10/16/2000 02:45 PM

To: Marnie Lamb/NA/Enron@Enron
cc:
Subject: Vacation

Marnie -

I think I need to take a half day of vacation Friday, Oct. 20th.  I am
involved in some church activities next weekend and I won't find out if I
need this time off until tonight or Wednesday night.  Is that too short of
notice?


Mike/Jeff,

As indicated in the list of deals and interested cps that we sent you yesterday, we closed a transaction with Japanese trading company, Kobayashi Yoko, this afternoon.  Kinoshita and Anai had been working this company and had already gotten basic documentation and credit approval in place.  We had also gotten prior approval from Sheila Glover and Gary Hickerson to use the local metal's trader to handle FX swaps up to USD30MM.  Commodity and FX risk (except for 4 days from contract settlement) have been hedged with Singapore and ENA.  Not a big deal in and of itself (notional USD250k), but a start.  We believe there is much more demand and plan to see more in the near future.  Also expect to see first LPG deal with Marubeni with our new mid mkt "trader" very shortly.  We would back to back transaction as well.  Details of this transaction are as follows:

Enron Japan sells Dubai swap to Enron Singapore

Month: March 2002

Volume: 12,500bbls

Price: 20.24$/bbl

Enron Japan sells US$253,000 to ENA

Value date: 5 April 2002

Price: 118.92Y/$

Enron Japan buys Dubai swap from Kobayashi Yoko

Month: March 2002

Volume: 12,500bbls (=1,987.34 kl)

Price: 15,110Y/kl


-----Original Message-----
From: 	Hayden, Frank
Sent:	Tuesday, January 22, 2002 1:19 PM
To:	Lavorato, John
Subject:	Help

John,
Are you in charge of sign ups? I know you are for commercial types, and I'm trying to figure out who decides how much I get paid in UBS world.  I have meeting with UBS this afternoon to discuss.  If possible, can you intercede for me and help me get more money (signing bonus and bump in salary, maybe even year contract?)..  Flat bid to current salary is very humbling, especially given market opportunities for my skill set.

I appreciate everything you've done for this organization and if you are unable to intercede, I'll understand.

Thanks,
Frank


Attached is our mark-up of Northwestern's Guarantee.  Please note that our
client has not had an opportunity to review this draft and it remains
subject to its comments as well.

Regards

John L. Keffer
King & Spalding
713 751 3255
713 751 3280 (fax)
jkeffer@kslaw.com
 <<Red Northwestern Corporation Guarantee.DOC>>

                    Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

 - Red Northwestern Corporation Guarantee.DOC


Cara worked evenings with me Monday, Tuesday, Thursday, and Saturday.  She has done well learning the evening routine.  She has taken lots of notes and seems to understand what needs to be done.  The area she still has concerns with is: El Paso - when is it a loop and when is it going to or from TW.  So be sure to let her know if there are any.

I let her do everything Saturday evening and with the exception of a couple of questions, she soloed.  I feel she will do fine on evenings starting Wednesday, the 26th.

Randy


Sara, I am attaching some examples of Conditional deals that we have done
recently. Let me know if you need anymore or have any questions.

The Dial Draft that we discussed Dale has reviewed and revised and forwarded
a copy to you. I do know that commercial would like to get the Dial Draft out
today. Please give me a call if you have any questions, I would be more than
happy to go over it with you.

Thank you,

Jarrod


<<Gas Transaction Collateral Agreement(4-19-01)ENA.doc>>

Here is the clean version, with spacing, numbering and punctuation fixed.
On the Master Netting Agreement Amendment, one more change - the signature
block for PG&E Energy Trading - Power, L.P. should be by PG&E Energy Trading
Holdings Corporation (there is no longer a "-Power" in its name).  We
chagnedits name in the last few months.

The UCC searches are in process.  CEG is a Saskatchewan corp and ET Gas
Canada is an Alberta-headquartered corp.  The other three are Maryland based
so their searches should move faster.  Peter

Peter

PG&E National Energy Group and any other
company referenced herein that uses the PG&E name or
logo are not the same company as Pacific Gas and
Electric Company, the regulated California utility.  Neither
PG&E National Energy Group nor these other
referenced companies are regulated by the California Public
Utilities Commission.  Customers of Pacific Gas and Electric Company
do not have to buy products from these companies in order
to continue to receive quality regulated services from the utility.

 - Gas Transaction Collateral Agreement(4-19-01)ENA.doc


Greg Whalley will be in attendance at both meetings.

Liz

	Enron North America Corp.

	From:  Sherri Reinartz @ ENRON                           01/12/2000 03:30 PM

To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cliff
Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Rick Buy/HOU/ECT@ECT, Richard Causey/Corp/Enron@ENRON, Diomedes
Christodoulou/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James V Derrick@Enron,
Andrew S Fastow/HOU/ECT@ECT, Peggy Fowler/Enron@Gateway, Mark
Frevert/LON/ECT@ECT, Kevin P Hannon/HOU/ECT@ECT, Ken Harrison/Enron@Gateway,
David Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe Hirko/Enron
Communications@Enron Communications, Stanley Horton/Corp/Enron@Enron, Kurt S
Huneke/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Larry L
Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean/HOU/EES@EES, Mark
Koenig/Corp/Enron@ENRON, Kenneth Lay/Corp/Enron@Enron, Rebecca P
Mark/HOU/AZURIX@AZURIX, Mike McConnell/HOU/ECT@ECT, Rebecca
McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon/HOU/ECT@ECT, J
Mark Metts/HOU/ECT@ECT, Cindy Olson/Corp/Enron@ENRON, Lou L Pai/HOU/EES@EES,
Kenneth D Rice/HOU/ECT@ECT, Jeffrey Sherrick/Corp/Enron@Enron, John
Sherriff/LON/ECT@ECT, Jeff Skilling/Corp/Enron@ENRON, Joseph W
Sutton/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg Whalley/HOU/ECT@ECT, Thomas
E White/HOU/EES@EES, Brenda
Garza-Castillo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marcia
Manarin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Susan Skarness/HOU/ECT@ECT,
Stacy Guidroz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Beena
Pradhan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Karen K Heathman/HOU/ECT@ECT,
Sharron Westbrook/Corp/Enron@ENRON, Molly
Bobrow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rosane
Fabozzi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stephanie
Harris/Corp/Enron@ENRON, Bridget Maronge/HOU/ECT@ECT, Shelby
Earle/Corp/Enron@ENRON, Shelby Earle/Corp/Enron@ENRON, Mary
Trosper/Enron@Gateway, Nicki Daw/LON/ECT@ECT, Carol Ann Brown/HOU/ECT@ECT,
Dolly Henrici/Enron@Gateway, Ann Joyner/Corp/Enron@ENRON, Elaine
Rodriguez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nancy Young/Enron
Communications@Enron Communications, Ann Joyner/Corp/Enron@ENRON, Cindy
Stark/Corp/Enron@Enron, Sherryl Stone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Mary E Garza/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maureen
McVicker/HOU/EES@EES, Joannie Williamson/Corp/Enron@ENRON, Rosalee
Fleming/Corp/Enron@Enron, Vanessa Groscrand/Corp/Enron@Enron, Marsha
Lindsey/HOU/AZURIX@AZURIX, Cathy Phillips/HOU/ECT@ECT, Loretta
Brelsford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sue Ford/HOU/ECT@ECT, Dolores
Fisher/HOU/ECT@ECT, Karen Owens/HOU/EES@EES, Dorothy B Dalton/HOU/ECT@ECT,
Christina Grow/Corp/Enron@Enron, Lauren Urquhart/LON/ECT@ECT, Sherri
Reinartz/Corp/Enron@ENRON, Katherine Brown/Corp/Enron@ENRON, Pam
Benson/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Liz M Taylor/HOU/ECT@ECT, Judy G
Smith@EES, Bobbie Power/Corp/Enron@ENRON
cc: Joe Witherspoon/Corp/Enron@ENRON, Rodney Keys/Corp/Enron@ENRON, DeMonica
Lipscomb/Corp/Enron@ENRON, Vanessa Groscrand/Corp/Enron@Enron, Suzanne
Danz/Corp/Enron@ENRON, Keith Dziadek/HOU/EES@EES
Subject: EXECUTIVE COMMITTEE MEETINGS - MONDAY, JANUARY 17

Please respond regarding your attendance at the following events:

Executive Committee Breakfast
Date:  Monday, January 17
Time:  7:30 a.m.
Location: EB50M

Please indicate below whether or not you will attend the breakfast.

  Yes, I will attend __X__

  No, I will not attend _____

*  *  *

Executive Committee Weekly Meeting
Date:  Monday, January 17
Time:  11:00 a.m. (CDT)
Location: 50th Floor Boardroom
Video:  Connections will be established with remote locations upon request.
Conf call: A conference call bridge has been reserved.  The dial in number
713/853-3233.
  Please contact Sherri Sera (713/853-5984) or Katherine Brown (713/345-7774)
  for the weekly passcode.

Please indicate below whether or not you plan to attend this meeting and
through what medium.

 Yes, I will attend in person ____X___

 By video conference from _______

 By conference call  _______

 No, I will not attend  _______

*  *  *

Please return this e-mail to me with your response by 12:00 p.m., Friday,
January 14.

Thank you,
Sherri


We have secured the open marketers seat on the Advisory Committee at the
MISO.  This is a 2  year commitment.

Jeff


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/23/2001
05:05 PM ---------------------------

Lance Cunningham@ENRON on 03/22/2001 02:45:24 PM
To: Amitava Dhar/Corp/Enron@ENRON, Rakesh Bharati/NA/Enron@Enron, Martin
Lin/Contractor/Enron Communications@Enron Communications
cc: Stinson Gibner/HOU/ECT@ECT, Tanya Tamarchenko/HOU/ECT@ECT, Vasant
Shanbhogue/HOU/ECT@ECT, Vkamins@enron.com, Ron McNamara/NA/Enron@Enron
Subject: Help on cluster analysis

Just wanted to pass a quick note to say thanks for all of your help that the
three of you each gave me concerning cluster analysis.  Your help was
invaluable .  As you may have been aware, we were performing the cluster
analysis to define the commercial zones in ERCOT.  I only had a few days in
which to learn the FASTCLUS procedure in SAS and prepare graphical views of
the results.

Your assistance ensured that Enron was seen as one of three market leaders
who had the capability to perform the analysis and cross check other market
participants analysis.  We were the only participant who had the ability to
graphically  display the results.

I was able to take the lead in a commercial meeting because of the data and
results.  I just wanted you guys to know that I really appreciated your help.

I have attached a couple of files that show some of the results.  The
presentation has the best overview.

Best Regards,
Lance


are there any hotties coming?


Ken:

Subject to final confirmation with the gas desk in Houston, Enron is prepared
to provide gas supply to CanFibre according to the terms on the attached.  If
you want to do something, please arrange for the first wire transfer (or
posting of the L/C).

I will be out of the office for the rest of the week, but calling in for
messages.

Thanks

Chris


YES, SEE YOU TOMORROW. MARK

> -----Original Message-----
> From: Dasovich, Jeff [mailto:Jeff.Dasovich@ENRON.com]
> Sent: Monday, October 29, 2001 9:06 AM
> To: mbaldwin@igservice.com
> Subject: RE:
>
>
> Really appreciate it.  Will you be attending?
>
> -----Original Message-----
> From: mbaldwin@igservice.com [mailto:mbaldwin@igservice.com]
> Sent: Friday, October 26, 2001 2:10 PM
> To: Dasovich, Jeff
> Subject: RE:
>
>
> Jeff, yes Tues at 10:00 a.m. in Sacramento. Gwen in my office will firm
> up
> the schedule. Mark, IGS.
>
> > -----Original Message-----
> > From: Dasovich, Jeff [mailto:Jeff.Dasovich@ENRON.com]
> > Sent: Wednesday, October 24, 2001 2:06 PM
> > To: mbaldwin@igservice.com
> > Subject:
> >
> >
> > Hi Mark:
> >
> > Any chance of meeting with you and the gang from DWR on Monday morning
> > or sometime Tuesday?
> >
> > Best,
> > Jeff
> >
> >
> > **********************************************************************
> > 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 authorized to receive for
> > the recipient), please contact the sender or reply to Enron Corp.
> > at enron.messaging.administration@enron.com and delete all copies
> > of the message. This e-mail (and any attachments hereto) are not
> > intended to be an offer (or an acceptance) and do not create or
> > evidence a binding and enforceable contract between Enron Corp.
> > (or any of its affiliates) and the intended recipient or any
> > other party, and may not be relied on by anyone as the basis of a
> > contract by estoppel or otherwise. Thank you.
> > **********************************************************************
> >
>


Mark,

Would you remind me of your location at work again?  Thanks.  Talk to you
soon.

-Larry-


With the Holiday Season and a New Year upon us, I would like to take this
opportunity to thank each of you for the contributions you,ve made this year
to the success of Enron Transportation Services Company and Enron.  Your hard
work and dedication continue to add value across the Enron organization.

I hope that you and your family have a Happy Holiday and a safe New Year.


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  , 2001 Carr Futures

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

Option Candlesticks
http://www.carrfut.com/research/Energy1/candlesticks86.pdf

Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606  USA
Tel:  312-368-6149
Fax:  312-368-2281
soblander@carrfut.com
http://www.carrfut.com


Hey Edith,

Jennifer wanted me to let you know that she's having a little soiree Friday evening around 7 pm...Very casual, but feel free to bring others.

Hopefully we'll see you there,
Susan


I have submitted our request for a dial up connection.  I will forward the
info to you as soon as I receive it.

Lysa
---------------------- Forwarded by Lysa Akin/PDX/ECT on 11/08/2000 07:51 AM
---------------------------

Paul Kaufman
11/07/2000 03:50 PM
To: lysa.akin@enron.com@ECT
cc:
Subject: FERC Call-in number

Please forward the call-in phone number for the FERC meeting on Thursday to
Jeff Dasovich and Mona Petrochko.


Folks.  I'm working on it, but it's going to require quite a bit of work.
Please chk your emails later this evening for the next draft.  I'll page
folks--those with pagers, that is--to notify when I've emailed it.  Scott,
please inform Hedy and Bev.

Best,
Jeff


fyi  I'll send you the list of site specific references also.
---------------------- Forwarded by Kay Mann/Corp/Enron on 11/17/2000 08:28
AM ---------------------------

Kay Mann
11/16/2000 09:12 AM
To: Dale Rasmussen/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT
cc: Sheila Tweed/HOU/ECT@ECT

Subject: Gas Turbine Purchase Agreement.DOC

This is the most current clean version of the GE breakout contract.  You have
also received a list of site specific references in the contract to assist in
the preparation of the final document.

I will contact Kent Shoemaker today to see how close we are on the form.  It
is my understanding that the lawyers involved in the projects will take the
laboring oar once the form is ready to go.

I'll let you know as soon as I hear something from GE.  I am also trying to
set up a meeting with ABB today or tomorrow.  I will send you the current
version of that contract as well, although we have not had any input from ABB
on it yet.

Kay

---------------------- Forwarded by Kay Mann/Corp/Enron on 11/16/2000 09:08
AM ---------------------------

"Lindo, Jacqueline E." <jacquelinelindo@akllp.com> on 11/14/2000 08:59:23 AM
To: <kay.mann@enron.com>
cc: "Pipitone, Paul" <paulpipitone@akllp.com>, "Cobb, Chris"
<chriscobb@akllp.com>

Subject: Gas Turbine Purchase Agreement.DOC

 Attached please find a clean copy of Version 6 of the GE Turbine
Agreement.

 <<Gas Turbine Purchase Agreement.DOC>>
 - Gas Turbine Purchase Agreement.DOC


01/23/02    NON-CHECK FINANCIAL DATA FOR REF. #    30202345481
ACCOUNT: 40781075      ENRON CORP-ECT CASH SVC
            AMOUNT      POST DATE  VALUE DATE   CODE      BATCH/TRACK       DUP
        212,280.16       01/23/02    01/23/02    479     650000000571         1
TRANSACTION DESCRIPTION
SAME DAY DR TRANSFER
         GID:LCT20230873400
         FED20020123B1Q8022C001918
         USER REF:TWS000379676
         REF:      TWS000379676
         ORDER:    ENA CASH SERVICES
         CR BK ID: 021000021
         CR BK:    JPMORGAN CHASE BANK FORMERLY CHASE
          MANHATTAN BANK,N.A NEW YORK, NY 10004
         BENEF:    323009980 ENTERGY KOCH TRADING LP
         DETAILS:PREPAY FOR JANUARY POWER
         INSTRUCT DATE:01/23/02 ADVICE TYPE:MAIL

ENTER  (1) YESTERDAY    (2) TODAY        (3) SEARCH       (4) SERIAL
       (5) REFERENCE    (6) HISTORICAL   (7) TRANS FLOAT  (8) BACK VALUE
       (9) LAST VIEWED
>


Attached are the Functional Income Statement and O&M Expense for October 2001 as of the 6th workday.


-----Original Message-----
From: 	Cabrera, Reyna
Sent:	Thursday, November 15, 2001 5:36 PM
To:	Blair, Lynn; Bodnar, Michael; Winckowski, Michele; Fancler, Dan; Buchanan, John; Williams, Jo
Subject:	Storage Desk 3rd Party Storage Procedures

Attached are the Storage Desk 3rd Party Storage Procedures for your information.

Reyna Cabrera
(713) 853-3072


Attached is the draft interconnect agreement.


Hey, there's still time to view the presentations given by Enron management
at the annual investor conference held in January.

A link to the replay of the webcast is available at www.enron.com.  A list of
the presentations made at the meeting will appear on the screen.  To view a
presentation, simply click on the title.  The entire webcast is about eight
hours long, with each presentation lasting about 45 minutes to one hour.  The
webcast will be available 24 hours-a-day, seven-days-a-week until Feb. 28.

This is an excellent opportunity for you to get the latest information about
Enron's business activities and strategy.  If you encounter problems
accessing the webcast, call 1-888-457-7469 for help.


I knew the minute it started beeping it was you!


We have received the following executed Master Agreement:

Type of Contract:   ISDA Master Agreement ( Multicurrency-Cross Border)

Effective Date:  March 24, 2000

Enron Entity:  Enron North America Corp.

Counterparty:  Basin Electric Power Cooperative

Transactions Covered: Approved for all products with the exception of:

   Weather, pulp and  paper, and foreign exchange


I am not sure yet. I will email you tommorow morning and let you know.


No, I am going to the monthly Women's Energy luncheon, that has been paid
for.  May be latter in the week.


For Ontario curves;

O:\ECT_Trading\Pos_Curves

 -----Original Message-----
From: 	Keiser, Kam
Sent:	Wednesday, January 09, 2002 11:58 AM
To:	Winfree, O'Neal D.; Giron, Darron C.; Valdes, John; Palmer, B. Scott; Love, Phillip M.
Cc:	Gossett, Jeffrey C.
Subject:	estate files

Are there any other files/directories that the estate people in risk will need to use to do their jobs.  IT will have to go into each macro and change the database that it is using to the new one they are creating this weekend.  I don't know if any of you are still using any exotic spreadsheets other than the transport model.  Please let me know if there is anything I'm missing.  (curve files)

Here are the files that use ERMS that the estate will be using.

O:\erms\erms_adm\firmtrad\Benchmark\2002\Jan-02
O:\erms\erms_adm\firmtrad\2002\0102\regions
O:\erms\Excel Queries\ (Netco will need a copy of these files moved with them)
O:\Transport\Central Transport\2002\Jan02
O:\TDS\TDS Curve\Central
O:\TDS\TDS Curve\East
O:\TDS\TDS Curve\GD-Central
O:\TDS\TDS Curve\Central\NY
O:\TDS\TDS Curve\Central\NYMarket
O:\TDS\TDS Curve\Central\Southeast
O:\TDS\TDS Curve\Central\Texas
O:\TDS\TDS Curve\Central\West


Start Date: 1/28/02; HourAhead hour: 23;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002012823.txt


We had a good time.  I always enjoy Ozzie and Heather. Carlos joined us, too.

Ozzie has a new Mercedes convertible, and he drove me to Michael's babysitter
to pick him up.  Michael's eyes were the size of saucers!

ckm


---------------------- Forwarded by David M Gagliardi/TTG/HouInd on
10/31/2000 07:55 AM ---------------------------

mggagliardi@duke-energy.com on 10/31/2000 07:15:20 AM

To:   DGagliardi@reliantenergy.com, David_Ricks@GSDM.com,
Tony.A.Rogers@fritolay.com
cc:

Subject:  True Orange Fax/E-Mail #102

---------------------- Forwarded by Michael
Gagliardi/Hou-ComOps/EnergyTrading/PEC on 10/31/2000 07:14 AM
---------------------------

TruOrange@aol.com on 10/30/2000 09:06:41 PM

To:   TruOrange@aol.com
cc:
Subject:  True Orange Fax/E-Mail #102

True Orange Fax/E-Mail Service
Volume 8, Fax/E-Mail #102, Monday, October 30, 2000
Jerry Scarbrough's True Orange, P. O. Box 26530, Austin, Texas 78755 -
Phone
512-795-8536

Kansas Game Set for 1 p.m., No TV; Brown Says Tech Dangerous Foe

The Longhorns' game next week at Kansas has been set for 1 p.m. with no
television. This is the second faraway game this year that has not been
televised. The other one was at Colorado.
Folks, one of the primary reasons that was given for the Longhorns playing
Louisiana-Lafayette with that ridiculous 11 a.m. kickoff back in early
September when it was hot as blazes was that the TV brass appreciated Texas
making an extra effort and would reciprocate down the line.
Well, it hasn't happened. The Baylor-A&M game was shown in place of the
Texas-Colorado game back on Oct. 14. Any big Baylor or A&M fans could make
it
to Waco a lot easier than Longhorn fans could make it to Boulder.
Don't let anyone tell you that UT has any extra pull with the TV guys. When
neither of our two longest Big 12 road trips get picked up by TV, that
tells
you we have zero stroke with the networks.
Last season, 12 of Texas' 14 games were televised. So far this season, 5 of
8 have been televised. We're already worse off than last year with three
regular season games to go.
And don't bank on pay-per-view. The Big 12 contract with ABC doesn't allow
pay-per-view that would conflict with the ABC college telecasts.
* * * *
Coach Mack Brown said Monday the Longhorns are in for a terrific battle in
Lubbock Saturday night. He said the Raiders "run a no-huddle offense. They
might get 90 plays. We'd better have a bunch of guys ready to rush the
passer."
He said the Raiders throw on nearly every down, and he said the UT coaches
will play a lot of people on defense to try to keep fresh pass rushers in
the
game.
He also said the last three games of the season against Texas Tech  and
Kansas on the road and Texas A&M in Austin are all tough games. "I told the
players we could end up 6-5 or we could end up  9-2," he said. "I really
don't know."
Brown said the Longhorns are 5-5 in their last 10 trips to Lubbock. He is
0-1
in his one trip to Lubbock with the Longhorns because the Raiders took a
42-35 victory in 1998, the last time the Horns came to town. But Brown is
1-1
against the Raiders because Texas mauled Tech last year in Austin, 58-7.
Mike Leach, the Tech coach, was offensive coordinator at OU last year, and
Brown said, "Texas Tech runs the same offensive scheme that Oklahoma runs.
That should get our attention."
He said Raider QB Kliff Kingsbury "is one of the top quarterbacks in the
league and in the nation. He is much improved."
* * * *
It will be strength vs. strength when Kingsbury, the most prolific passer
in
Division I, throws against the Texas defense, which is No. 1 in the nation
in
pass efficiency with a very good 82.69 rating. The Longhorns also are 10th
in
passing yardage yielded, giving up just 168 yards per game.
* * * *
FOOTBALL RECRUITING  NOTES: The Longhorns are still at 19 commitments.
Super
safety Dewayne Brandon of Temple says he is pretty sure he will sign with
either Texas or Florida State. Super OL Jami Hightower of Jacksonville says
it is still a three-way race between Texas, A&M and Nebraska. He says he
plans to come to the Texas-A&M game.
* * * *
FOOTBALL NOTES: Roy Williams has caught passes for a UT freshman record 514
yards this year and B. J. Johnson is close behind him with 446. Williams
also
is the leading freshman receiver in the nation in terms of yardage gained.
Lovell Pinkney held the UT freshman record. He had 458 yards as a freshman
in
1992. Johnson needs just 13 yards to pass Pinkney. . . The Longhorns are a
10-point favorite over Texas Tech. . . Only 7 of the players on UT's 44-man
depth chart are seniors.
* * * *
My next e-mail/fax will be whenever events warrant.
* * * *
The True Orange Fax Service includes  at  least  99 faxes  a year and costs
$99 ($79 by E-Mail). The True Orange Newsletter includes  26 newsletters
and
is published weekly during football season and twice monthly during most of
the other months. It costs $45. Save by subscribing to both for $130 (or
$110
if you take the faxes via E-Mail  or $99 if you take the faxes and
newsletter
via E-Mail). Send check  to address at the top of page. I also  update my
900 number ? 1-900-288-8839 ? daily with recruiting news. My E-Mail address
is: truorange@aol.com


I will be happy to review change order #5, and present to GE for their review
and approval.  First, it needs to be prepared by someone involved with the
project, and Finance needs to be notified that additional funding will be
required, if they don't know already.  As I mentioned in my email, there
needs to be a definitive decision made as to whether the change order should
be funded out of WestLB (prior to December 15) or will be funded through
TurboPark.

I faxed change order #2 to Al so that he has the form.  If this will be
funded through WestLB, the current contract value is $352,289,400.

Here is the electronic form:

Kay

Jeff G Slaughter@ECT
12/01/2000 03:08 PM
To: Kay Mann/Corp/Enron@ENRON
cc: Alan Larsen/PDX/ECT@ECT, Ben Jacoby/HOU/ECT@ECT

Subject: Re: Fountain Valley

Kay,

Just wanted to let you know if Al has not already done so, the stacks we were
referencing were for an additional 2 stacks for a total of 6, CO no 2, that
we are aware of, is for only four.

 Please let us know if you need anything else to get the additional two
stacks ordered.

Thanks for your support!

Jeff

Kay Mann@ENRON
11/30/2000 06:03 AM
To: Alan Larsen/PDX/ECT@ECT
cc: Jeff G Slaughter/PDX/ECT@ECT, Ben Jacoby/HOU/ECT@ECT
Subject: Re: Fountain Valley

Wow, I didn't know I could control anything!

Change order 2 was initialled by Dale and signed by Chris on November 2, re
stack extensions.  I also have a hand marked up change order form from Ed
Danhaus referring to brush power system stabilizers.  Is this what you are
looking for?

The procedure has been that the project team/attorney prepares the draft of
the change order (or has EECC do it), I give it a sanity check and arrange
for signature from GE.

The issue now would be whether this change order should be processed in the
next week, or be a change to the break out contract.  I do not believe the
cost has been included in the payment schedule.

Please give me a call if you would like to discuss this.

Thanks,

Kay

Alan Larsen@ECT
11/29/2000 06:41 PM
To: Kay Mann/Corp/Enron@Enron
cc: Jeff G Slaughter/PDX/ECT@ECT

Subject: Fountain Valley

Kay--In forwarding to Jeff Slaughter, who is on the commercial team for the
Fountain Valley (PSCo) project, your note regarding transportation of large
equipment items, Jeff mentioned that in your role with regard to GE change
orders, you apparently have control over  a change order for this project for
2 additional stacks.  Jeff asked if I could use my good offices, such as they
are, to ask you to provide a change order, I believe to the attention of Ed
Dannhaus at EE&CC.  Thanks for your assistance.
 Al Larsen


Gas Liberalization Turns Volatile For German Utility
The Wall Street Journal Europe, 08/23/01
2 Sides Spend Millions To Generate Support
The Washington Post, 08/23/01
Traders, Old Utilities Tangle Over Wires
The Washington Post, 08/23/01
Relentless Search for Growth Humbles a Mutual Fund Star
The New York Times, 08/23/01
From Maine to N.Y. Way of Atlanta; Trades Light Up States by Long Distance
The Washington Post, 08/23/01
UK: Copper pushes ahead in subdued LME pre-market.
Reuters English News Service, 08/23/01
Papers on Dabhol project not received
The Times of India, 08/23/01
INDIA: ANALYSIS-Poor governance hobbles India's reform drive...
Reuters English News Service, 08/23/01

Politics & Economy
European Notebook
Gas Liberalization Turns Volatile For German Utility
By Philip Shishkin
Staff Reporter

08/23/2001
The Wall Street Journal Europe
2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Two years ago, the municipal utility in Heidelberg, Germany decided to do something very unusual for European utilities. It went shopping for natural gas.
For more than 40 years, the utility, Stadtwerke Heidelberg, didn't have a choice in suppliers. As with other large industrial buyers of natural gas in Europe, it was locked into long-term supply contracts; in its case, with Ruhrgas AG and two other regional pipeline operators, which own most of the natural gas pipelines in Germany and are regulated by German authorities.
But in 1998, the European Union moved to deregulate Europe's natural gas market, freeing factories, utilities and other large industrial gas purchasers to forgo their traditional suppliers and look elsewhere. The directive took effect in August 2000.
So when Stadtwerke Heidelberg's latest contract expired, it went shopping for gas, one of the first German utilities to do so.
"We wanted to show that it's possible to get gas from another supplier," said Peter Erb, the utility's manager of energy trading. "All the big players in the German market were saying it's not possible." As for his traditional suppliers, Mr. Erb said, "They were very angry."
In the end, Stadtwerke Heidelberg succeeded in finding an alternative supplier, but the utility's troubles in the open market show just how difficult the process can be.
The utility and its new supplier, Enron Corp. of the U.S., had to negotiate with Ruhrgas and the two other natural gas providers for six months before they could get access to transmission pipelines. They also had to navigate through a confusing thicket of tariffs, rules and technical requirements.
Although the EU's gas directive required pipeline owners to provide non-discriminatory access to their system, it didn't make clear how that would be done. As many would-be gas suppliers quickly learned, negotiating such access can be very tough. The rules differ in different European nations and the pipeline owners can use the confusing regulations to their advantage to frustrate competitors.
So far, there isn't "the degree of competition that the industrial gas users expect from a liberalized market," said Francesco Balocco, energy issues manager at the European operations of Dow Chemical Co.
Energy consulting firm Dri-Wefa recently surveyed 59 large industrial gas buyers, and found that while 40% have sought new gas contracts, only 12% have switched suppliers. The survey identified 13 new entrants into the gas-supply market, including incumbent national players expanding in other EU countries and also large energy-trading firms such as Enron.
Stadtwerke Heidelberg started its effort to diversify its natural-gas purchasing in December 1999, when it had just months remaining on its 20-year contract. Mr. Erb picked up the phone and started calling potential suppliers and found the most interest at Enron's German headquarters. The Houston, Texas-based natural gas giant had grown explosively at home by competing for business against monopoly gas providers, and it was looking to do the same abroad.
It took the two companies six months to secure access to pipelines in Germany. "It's absolutely natural for a network operator that is also competing in the supply market to try to keep us off the network," said Paul Hennemeyer, Enron's director of regulatory affairs. Enron's officials ran into constant delays, were asked to supply more and more information and sometimes even had a hard time reaching the right people at the companies they were negotiating with, Mr. Hennemeyer said.
Ruhrgas says it was trying to be helpful, but argues that lengthy negotiations were inevitable because it was tackling many access issues for the first time. "We made every contribution to provide for fair and easy access network access," said a Ruhrgas spokeswoman. "In the beginning, the system needed some time to develop." Shortly after a deal was reached, the German government spelled out new rules on pipeline access, which will make future negotiations easier.
In Oct. 2000, Enron began to deliver gas to Stadtwerke Heidelberg, and to another German municipal utility, which followed a similar negotiating path. Stadtwerke Heidelberg moved cautiously; it bought 30% of its natural gas from Enron, with the remainder from its traditional suppliers. Enron and Stadtwerke Heidelberg won't discuss the details of their contract, though both say Enron offered a cheaper price than Stadtwerke Heidelberg's other suppliers.
But the German utility quickly absorbed the cost-saving lessons of a deregulated market:
Starting in October, the utility will drop Enron in favor of another company, Wingas, which has built a new pipeline to Heidelberg. The reason: a combination of a better price and the convenience of a new supply route.
"We obviously didn't break out the Champagne," Enron's Mr. Hennemeyer recalls. But he says Enron welcomes such switching of suppliers in general as a sign of the free market.

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

A Section
2 Sides Spend Millions To Generate Support

08/23/2001
The Washington Post
FINAL
A15
Copyright 2001, The Washington Post Co. All Rights Reserved

To hear executives at Enron Corp. tell it, their company has been outgunned for years by the giant utilities in the lobbying battles in Washington over electricity policy.
"We're a little guy," said Jeffrey K. Skilling, who served as chief executive of the Houston company until he quit last week. "We've been fighting a battle against some very big hitters."
From 1992 to 1999, utilities spent large sums to keep electricity deregulation at bay, helping to prevent Congress from taking any action to mandate it at the local level and engineering a House restructuring bill generally viewed as favorable to utilities. That bill died in the House Commerce Committee in 1999.
"A ferocious lobbying campaign was waged" on retail deregulation, said a former Republican aide. Southern Co., the big Atlanta-based utility holding company, made its influence felt, he added.
In 1992, Southern hired Mississippian Haley Barbour to work for it in Washington. Barbour left in 1993 to serve as chairman of the Republican National Committee, a post he held until 1997. When he left the RNC, Southern again used his services.
After the GOP took control of Congress in 1995, the company also had direct access to House Speaker Newt Gingrich (R-Ga.) and Senate Majority Leader Trent Lott (R-Miss.), who looked out for the company's utilities in their home states.
Reports filed last year with the Federal Energy Regulatory Commission provide other insights into the source of Southern's strength in the South. In 1999, its affiliates in Mississippi, Alabama, Georgia and Florida reported spending more than $20 million on various civic, political and related activities, including $250,000 for the Birmingham Early Learning Center, $323,717 for the Mississippi Power Foundation, and dozens of other gifts ranging from $5,000 to the Gulf Coast Symphony to $191,398 for community charities in north Florida.
But Enron Chairman Kenneth Lay was cultivating his own GOP connections. A longtime fundraiser and activist for former president George Bush, Lay and Enron officials had contributed more than $550,000 to his son's presidential bid by July 1999, according to the Center for Public Integrity.
Lay, according to a spokesman, has also helped raise money for House Majority Whip Tom DeLay (R-Tex.) and for his Republican Majority Issues Committee, which was set up in 1999 to support House GOP members facing close races.
Nonetheless, Southern Co. still outspent Enron on lobbying in 1999 by $4.2 million to $1.9 million, according to the Center for Responsive Politics.
"People talk about Enron being big and powerful," Skilling said. "I mean, come on . . . the utilities were powerful adversaries. We're still a little company compared to them."
-- Dan Morgan

http://www.washingtonpost.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

A Section
Traders, Old Utilities Tangle Over Wires
Dan Morgan
Washington Post Staff Writer

08/23/2001
The Washington Post
FINAL
A01
Copyright 2001, The Washington Post Co. All Rights Reserved

ATLANTA -- Last of three articles
Ever since steamboat captain W.P. Lay founded Alabama Power Co. in 1906 to develop electricity along the Coosa River, utility companies have been stringing wires throughout the South for one purpose: so southerners could have power and light.
Now a bunch of outsiders, who buy and sell electricity but don't have a single retail customer below the Mason-Dixon line, have their sights set on those wires, and they are getting a helping hand from some powerful allies in Congress and the Bush administration.
Aided by supercomputers, and operating out of trading rooms as big as hockey rinks, the new breed of traders buy blocks of electricity anywhere along the nation's power grid, then borrow transmission lines to ship it to the highest bidder. But to more effectively move power from where it is cheap to where it is in strong demand, they want to remove what they contend is a "wire curtain" around the South. That means forcing the southeastern utilities to relinquish control of the wires to a new, federally supervised regional authority.
"The monopoly is the wires, and that's where the battles occur," said Jeffrey K. Skilling, who was chief executive of Houston's Enron Corp., the largest of the power merchants, until he resigned last week.
The clash grows out of a huge federal gamble on electricity deregulation.
In 1992, with many utility behemoths staggering under debt from cost overruns on nuclear plants and the rapid spread of computer technology putting new demands on the grid, Congress opted for a competitive market. The plan was to dismantle long-standing utility monopolies and replace them with innovative electricity companies responsive to the laws of supply and demand.
Now these new merchants of power, along with restructured utilities that have shed their old ways and embraced the new competitive world, have become strong advocates for a free-flowing, national electricity market. But in a classic Washington lobbying confrontation, they are running into resistance from traditional utilities, exemplified by Atlanta's Southern Co., now the parent of Alabama Power and other southern utilities.
At issue is how fast the federal government, in the wake of the California electricity crisis, should push for yet more changes.
Last month, the Federal Energy Regulatory Commission (FERC), recently stocked with President Bush's pro-market appointees, ordered most utilities to negotiate with federal mediators on procedures for handing over control of their wires to a few big regional authorities. Those authorities, in turn, will build new transmission lines, do away with bottlenecks, set uniform rates and ensure equal access to all. Next month, the Senate will take up proposals to give FERC even more authority to restructure the electricity industry.
But what is good for Enron may not necessarily be good for utility customers in the South, according to executives at Southern Co., whose affiliates dominate power sales in Georgia, Alabama, Mississippi and north Florida. Southern Co., Chairman H. Allen Franklin said in a recent interview, "will not go blindly" into the system proposed by FERC.
Although unfettered access to Southern's 26,650 miles of lines might help long-distance sellers of wholesale power such as Enron, company officials say it could mean congestion, power outages and higher prices for their 3.9 million retail customers.
"When California was restructured, it was thought there would be massive savings," Franklin said. "Well, there haven't been."
Building the Power Trade
If the California energy crisis left doubts about the future of a competitive market in electricity, a visit to Houston dispels them.
In the city's energy alley, Enron Corp. -- with annual sales of more than $100 billion last year, double those of Texaco -- is finishing a new 40-floor office building adjacent to its 50-story tower. Enron's competitors, Dynegy Inc., Reliant Energy and El Paso Energy, are a few blocks away. Duke Energy North American, merchant arm of Charlotte-based Duke Power, has settled in as well. And Calpine Corp. plans to take over 12 floors of a new 32-story building near Enron.
These power merchants are at the center of a burgeoning unregulated wholesale market, which now handles about a quarter of U.S. electricity output. But it is still a work in progress, fluid and accommodating in the Northeast and parts of the Midwest but much less open in the South.
In exchange for utilities opening up their transmission lines to the new wholesale market, the 1992 Energy Policy Act law allowed them to buy or build unregulated power plants outside their service areas. Many did. Quickest to embrace competition were California and the Northeast, which had long endured high power costs. To spur competition, California and some northeastern states went further, requiring utilities to sell off their regulated plants and begin buying bulk power from wholesalers.
Many states went further still, ending their utilities' long monopoly over retail sales and allowing customers to pick their own electricity provider.
The Northeast already was something of a mecca for power traders because of its experiments with power pooling, in which groups of utilities merge their separate transmission systems and use a central manager to market and distribute their electricity.
Enron, formed in 1985 by the merger of two big gas-pipeline companies, was quick to seize the opportunities. Its chairman, Kenneth Lay, a former official at the Federal Power Commission, FERC's precursor, during the Nixon administration, had pioneered natural gas trading during the volatile period of pipeline deregulation in the 1980s.
As the electricity market began to develop in the early 1990s, Lay and Skilling, a weekend dirt biker with a degree from Harvard Business School, began applying some of the lessons learned in the natural gas markets.
Enron signed its first long-term power contract in 1989, Skilling recalls. Independent companies that wanted to install gas-fired generators and sell the power on the grid could buy the gas from Enron under long-term contract -- then sell the electricity back to Enron.
"We started creating forward and futures markets" using "a lot more financial engineering" than was required in other commodity businesses, Skilling said. By the late 1990s, Enron was buying the output of generating plants days, weeks, months and even years before it was produced, using sophisticated weather and economic data to predict a price at which it could be profitably sold.
During the past five years, Enron has been one of the nation's fastest-growing companies. Its net income rose 40 percent in the second quarter of this year, although the price of a share has sunk to less than half of its 2000 high of $90, mainly because of setbacks in businesses unrelated to electricity. Investors pushed the price still lower after Skilling's departure last week.
Southern Inhospitality
Like other merchants, Enron plunged into California after the legislature opened up that giant state to electricity competition. But the Southeast remained less-friendly territory.
Texas is the only southern state to adopt retail deregulation. Florida goes so far as to ban out-of-state companies from building almost any plant for the wholesale market.
The region is the domain of huge traditional utilities that control the wires from Louisiana to Florida and up into Appalachia and the Carolinas. The web of power lines, tied to the utilities' coal-, nuclear- and gas-fired generating plants, reaches across states via 500-kilovolt workhorses and down into neighborhoods served via single wires strung on wooden poles.
For Southern Co., its reputation as a traditional utility heavy is a badge of pride. In 1997, it displayed a picture of a gorilla on its annual report.
Clustered around its borders are Entergy, another huge holding company that serves Louisiana, Arkansas, and parts of Mississippi and Texas; Florida Power & Light; Carolina Power & Light; Duke Power; and the federal government's centralized power giant, the Tennessee Valley Authority.
Those utilities have been under little pressure from customers to share the lines with wholesale competitors in the interest of lower prices. Prices run 15 percent or more below the national average, thanks to a rich lode of coal and natural gas and general public acceptance of the high-tension lines that carry the power generated by those fuels.
FERC, in a series of orders from 1996 to 2000, required utilities to open their wires for power shipments by independent merchants and to post how much transmission capacity they have available at any given time. The message, a former official said, was "they couldn't use the wires to preclude others from getting their juice to market."
But merchants say it is difficult to ascertain the accuracy of the postings made by the southeastern utilities because they operate the transmission lines as part of their closed, plant-to-customer systems.
A November 2000 FERC staff investigation of bulk power markets in the Southeast concluded that the transmission monopoly enjoyed by the region's utilities has discouraged independent power producers from siting new plants in the region.
FERC investigators cited Southern Co.'s refusal to let SkyGen Energy Inc. connect to its transmission lines in Alabama. Southern said the added load "would cause an area-wide stability problem for electric supply."
In that case, FERC denied SkyGen's request for relief.
Enron Vice President Kevin Presto said that day-ahead sales to customers such as municipal utilities in Southern's territory have become possible. But he said Enron has trouble getting long-term transmission commitments from Southern that would enable it to sell such power regularly. Also, he said, Enron cannot easily move power long distances through Southern's grid. "If I tried to buy transmission across Southern Co. to Jacksonville Electric, there'd be zero available," Presto said.
Of the overall situation in the Southeast, he said that the utilities "give you 0 to 5 percent of their transmission capability because they preserve the rest of it for native load [retail customers]. So you have a huge highway that's supposed to promote the free sale of electrons that isn't available to the wholesalers."
Southern Co. Chairman Franklin dismissed as "unfounded" the complaints of the merchants, and officials representing Alabama and Georgia municipal utilities tied to Southern Co.'s lines say they generally have been treated well.
Robert Johnston, president of the Municipal Electric Authority of Georgia (MEAG), which supplies power to 48 towns, took issue with the notion of a wire curtain.
"The market is growing in Georgia," he said. MEAG has its own trading room and has done business with a hundred or so traders or independent power producers. It also has its own generators producing power at four sites, though Southern Co. has an interest in all of them.
"There's not a grass-roots interest" driving the reforms, Franklin said. "It's the wholesale players."
While it squares off against the newcomers in the Southeast, though, Southern itself has aggressively exploited the growing wholesale market. Until it was spun off as a separate company earlier this year, Mirant Corp., Southern Co.'s marketing subsidiary, competed in California, the Midwest and the North, supplementing leaner profits from Southern Co.'s regulated units.
"Southern's strategy has been clear: Compete elsewhere and run a monopoly at home," said Allen Mosher, director of policy analysis at the American Public Power Association.
Well Connected for Battle
The next move is up to the federal government.
Next month, Sen. Jeff Bingaman (D-N.M.), chairman of the Energy and Natural Resources Committee, plans to propose legislation giving FERC expanded powers over wholesale transactions and transmission, so that "vested interests" will not be able to "manipulate the use of the transmission system" to benefit their own plants, Bingaman's office said.
In the House, key players will be Commerce Committee Chairman W.J. "Billy" Tauzin (R-La.), whose state is home to Southern Co.'s western neighbor, Entergy, and Rep. Joe Barton (R-Tex.), chairman of the energy and environment subcommittee, who has had close ties to the huge coal-dependent Texas utility TXU.
Last week, Entergy hired former FERC chairman Curt L. Hebert Jr., a Mississippi prote{acute}ge{acute} of Senate Minority Leader Trent Lott (R-Miss.), to handle regulatory and government affairs.
Enron recently hired a former aide to House Majority Leader Richard K. Armey (R-Tex.), as well as a former senior spokesman in the Bush campaign, Edward Gillespie of Quinn Gillespie & Associates.
Enron officials are counting on support from House Majority Whip Tom DeLay (R-Tex.), the hometown Houston congressman, though it is uncertain how much influence DeLay, an enthusiast for electricity deregulation, can bring to bear.
Industry lobbyists who gathered on Capitol Hill in July for closed-door meetings that DeLay sponsored, but did not attend, could not reach consensus on electricity. As a result, the energy bill passed by the House on Aug. 2 skirted key issues involving greater accessibility to the grid and electricity reliability.
Bush's election, and the fact that many utilities have plunged enthusiastically into the competitive market, clearly has created a more favorable political climate for the power merchants. Bush's first two appointees to FERC, Pat Wood III and Nora Mead Brownell, moved quickly to fix what they viewed as the Washington electricity bottleneck.
Wood had worked with Enron during a six-year effort to create a more competitive energy market in Texas, where Wood headed the state's public utility commission. Brownell, a former Pennsylvania utility regulator, won praise from Enron in 1997 when she helped block a restructuring plan that Enron contended would keep it out of the Philadelphia market.
On July 11, with a majority in tow, Wood, Brownell and William L. Massey, a Clinton appointee who is an ardent supporter of competition, tossed out proposals by Southern Co. and other utilities and directed utilities throughout the country to commence negotiations with federal mediators on handing over control of their lines to four independent regional transmission organizations, or RTOs.
"It was about time [a bomb] was dropped," Wood said.
But FERC's action may only have been what power association's Mosher calls the "beginning of a long movie."
Among those opposing expanded FERC authority are environmentalists who are fearful that new federal powers could lead to an expansion of high-voltage power lines; western property-rights advocates; and state utility regulators. Politically well-connected groups not now regulated by FERC -- including the TVA, rural electric co-ops and municipal power systems -- are also wary of new federal powers.
"There are big questions about FERC's role, who will determine transmission-line charges, should there be federal [authority] to site power lines, should there be FERC jurisdiction over power generation and reliability," said Rep. Richard Burr (R-N.C.), vice chairman of the House Energy and Commerce Committee.
Idaho utility regulator Marsha Smith, who heads the electricity committee for the National Association of Regulatory Utility Commissioners, noted that her state's three investor-owned utilities cannot transfer ownership or control of their transmission lines "without our approval."
Such approval does not seem likely anytime soon. Smith noted that 60 percent of the state's power comes from hydroelectric dams. "That's public property," she said.
In Alabama, James Sullivan, a state utility regulator overseeing Southern Co.'s affiliate, said he was not happy about the way FERC was proceeding.
"I'm opposed to any [changes to] our electric system in Alabama until I know it's going to bring rates down and enhance reliability for us," he said.
In the view of Southern Co. Chairman Franklin, it is still an "open question" whether FERC has the legal authority to force utilities to surrender control of all their wires.
Nonetheless, the restructuring of the power markets may already have gone too far to "put the genie back in the bottle," according to a former FERC official.
The power merchants readily concur.
"Everybody's paying too much because you've got this huge conservatism built into this bureaucratic operation of the utilities," Enron's Presto said.
Staff researcher Richard Drezen contributed to this report.

http://www.washingtonpost.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business/Financial Desk; Section A
Relentless Search for Growth Humbles a Mutual Fund Star
By PATRICK McGEEHAN

08/23/2001
The New York Times
Page 1, Column 1
c. 2001 New York Times Company

James D. McCall was one of Wall Street's best stock pickers in the late 1990's, his hand so hot that Merrill Lynch, eager to revive sales of its mutual funds, paid a ransom to his previous employer to win his services. Starting early last year, Merrill's brokers collected more than $1.5 billion from their clients for Mr. McCall to invest.
But in a breathtaking reversal of fortune, Mr. McCall has compiled one of the worst investment records of the new century with that money. All but about $650 million has been lost, leaving shares that cost many Merrill customers more than $10 each worth slightly more than $2.
As of Tuesday, Mr. McCall's main fund, Merrill Lynch Focus Twenty, held the rare distinction of ranking in the bottom 1 percent among funds of its kind for the previous day, week, month, quarter and year, according to Morningstar Inc., a company that analyzes mutual funds.
Though Mr. McCall is free to invest anywhere in the stock market, he has stuck to a growth-seeking strategy that kept the fund invested primarily in technology stocks throughout that sector's long, steep decline. Down almost 80 percent in the last year, the fund's performance has been significantly worse than that of the average technology fund, let alone its peer group of more diversified funds. It did, however, register aggressive gains in two market rallies.
Lately, the Focus Twenty fund seemingly went from bad to cursed as some of Mr. McCall's favorite stocks were laid even lower by a series of unfortunate surprises. His bigger holdings include Enron, whose shares fell 8 percent after its chief executive suddenly resigned, and Ciena, which dropped 30 percent in a day on disappointing earnings.
''It has been a miserable week,'' Mr. McCall allowed in an interview on Tuesday. ''It's not easy managing a portfolio like this in this type of an environment.''
Mr. McCall's rapid rise and fall demonstrates how fleeting stock-picking stardom can be, said John C. Bogle, founder of the Vanguard Group mutual fund company. Too often, Mr. Bogle said, investors chase after the past returns of the fund manager of the moment, only to find out they were pursuing a ''comet.'' (Investors in Vanguard's own aggressive growth fund, Vanguard Growth Equity, have had their shares drop 53 percent in value from their peak 17 months ago.)
Still, Vanguard is known for its index funds -- the antithesis of Mr. McCall's stock-picking discipline -- and Mr. Bogle is indexing's most outspoken champion. In speeches around the country, he has repeatedly and coyly -- avoiding any mention of Merrill's name -- cited the giant brokerage firm's creation of Focus Twenty and another fund in March 2000 as an example of racing to cash in on the latest market fad.
In roughly five weeks, Merrill's brokers gathered a total of more than $2 billion for Focus Twenty and the Internet Strategies fund. Almost immediately, those funds collapsed along with the Internet and technology stocks they owned. Internet Strategies, which Mr. McCall does not manage, never recovered and has now lost more than 80 percent of its value; Merrill plans to merge it with another of its stock funds.
But Mr. McCall, 47, said his fund did not face a similar fate. Indeed, he said, Robert Doll, the chief investment officer for Merrill's funds, recently told the firm's brokers that Merrill was committed to Focus Twenty and its aggressive, concentrated style.
Mr. Doll was not available for comment, but Merrill confirmed Mr. McCall's account. ''We are committed to having a full range of investment styles, aggressive growth being one of them,'' said a spokesman, Erik Hendrickson.
Funds seeking to rack up market-beating returns by making big bets on as few as 20 stocks proliferated in the late 1990's, in part because of Mr. McCall's success managing the PBHG Large Cap 20 fund for Pilgrim Baxter, a fund company in Wayne, Pa. In the two and a half years Mr. McCall ran it, the PBHG fund ranked first among its peer group -- funds that buy stocks of large companies whose earnings are expected to grow quickly -- with average annual returns of more than 50 percent.
It was those knockout numbers that brought Merrill calling in its search for proven growth-fund managers to broaden the firm's value-oriented lineup of funds. After Mr. McCall accepted Merrill's job offer, Pilgrim Baxter sued to stop him from breaking his employment contract. Mr. McCall countersued, and Merrill later agreed to pay an undisclosed sum to settle the litigation.
In court papers, Pilgrim Baxter disclosed that Mr. McCall had earned as much as $1.5 million annually there. Mr. McCall and Merrill officials have repeatedly declined to reveal how much the firm paid Pilgrim Baxter or any details of Mr. McCall's compensation at Merrill. Often, however, investment returns affect the pay of fund managers.
Like Focus Twenty, most of the concentrated funds sank last year with the collapse of technology stocks. The managers of some of those funds, including Marsico Focus, have shifted money out of volatile technology and telecommunications stocks and into more mature companies, like Citigroup and Omnicom, which owns ad agencies.
Mr. McCall sniffed at some of those choices, saying that the fund managers were not staying true to their mission of aggressive growth investing.
''I'm not going to own an Omnicom,'' he said, ''or a Sony or a Viacom or General Dynamics, because they're growing in the single digits.'' Thomas Marsico, the manager of Marsico Focus and one of the original concentrated-fund managers, did not return a call seeking comment.
Mr. McCall said he would continue to try to identify the companies that have the best chance of increasing their profits at extraordinary rates, regardless of what value other investors are assigning to those prospects at any given time.
''Valuation is not one of the factors that enters into our methodology,'' Mr. McCall said.
About 70 percent of Focus Twenty's assets are in technology stocks, according to Morningstar. But the fund's biggest holding now is Idec Pharmaceuticals, a drug maker.
Kunal Kapoor, a Morningstar analyst who tracks Merrill's funds, calls Mr. McCall a momentum investor who seeks ''growth at any price.'' Mr. McCall may be the best investor of that stripe, Mr. Kapoor said, but the strategy is so risky that he questions whether it was ever appropriate for so many of Merrill customers.
''I was really surprised by the amount of funds they were able to raise for a fund like that in such a short time,'' Mr. Kapoor said. ''The question is: Do you really need a fund like this?''
Reading a prepared statement, Mr. Hendrickson said Merrill Lynch considered concentrated funds to be ''an appropriate option'' for some investors, because they ''maximize the impact of professional stock-picking over the long term and additionally may serve as an alternative to individual stock holdings.''
He pointed out that Merrill managed another concentrated fund, Merrill Lynch Focus Value, that had performed well this year, gaining more than 3 percent.
As for Mr. McCall's returns, Mr. Kapoor said he could not fault Focus Twenty because it had performed as would be expected for a fund of its composition. It rang up some of the biggest gains of any fund in two brief periods when the market picked up -- the third quarter of 2000 and April of this year -- and some of the biggest losses when the market was down.
Rather, he said he was more disappointed with the other fund Mr. McCall manages, the Merrill Lynch Premier Growth fund, which is supposed to be less volatile because it holds about 50 stocks. That fund is down more than 50 percent this year and has shrunk to less than $100 million in assets.
Mr. McCall said that he had warned Merrill's brokers all along just how volatile his returns could be and that Focus Twenty was no place for investors to put money they might need any time soon.
But, he said, he thinks that now, more than ever, is the time to take a chance on the fund, with its shares selling for about $2.20.
''I don't think $2 a share is a lot to risk,'' the indomitable fund manager said. ''We could go down from here certainly, but over the long term, there is more potential on the upside than on the downside.''

Photo: Before James D. McCall came to Merrill Lynch, he was at Pilgrim Baxter, where he successfully managed the PBHG Large Cap 20 fund. (Ethan Hill)(pg. C2) Chart: ''Losing Big'' Since March 2000, clients of Merrill Lynch have poured more than $1 billion into the main fund managed by James D. McCall. As many fund managers pulled their money out of technology stocks, Mr. McCall stayed with the sector and compiled one of the worst investment records among fund managers the last 18 months. Chart shows Merrill Lynch Focus Twenty fund since Mar. 2000 (Source: Bloomberg Financial Markets)(pg. C2)
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

A Section
From Maine to N.Y. Way of Atlanta; Trades Light Up States by Long Distance

08/23/2001
The Washington Post
FINAL
A15
Copyright 2001, The Washington Post Co. All Rights Reserved

If the state of New York avoids brownouts this summer, it will be due in a small way to the efforts of Andrew Gillespie, a young electricity trader who works for Mirant Corp. in an Atlanta suburb.
Mirant grew out of Atlanta-based Southern Co.'s aggressive attempt to enter the unregulated market that was developing outside its home region. Early this year, Southern spun off Mirant as a separate company that Wall Street stock traders value at about $11 billion.
Gillespie spends much of the day staring at a map of New York that glows green on his computer screen. The map displays the prices at which electricity is selling at key points on the state's power grid.
One summer day, Gillespie called a trader who buys electricity from New England's centralized power pool, which manages power sales from regional utilities such as New England Power, Boston Edison and Central Maine Power.
He agreed to buy 14 megawatts over a 16-hour period the next day and pay about $9,000. He used the phone to offer the power to the New York Independent System Operator, a nonprofit organization set up to manage the state's wholesale market and its high-voltage transmission system, for a small markup.
Then he waited to find out whether the offer was accepted. If it was, he would go online to book a transmission route. If not, he would unload the power on another trader in the over-the-counter market, made up of merchant companies such as Enron Corp., Dynegy Inc., Duke Energy North America, Reliant Energy, El Paso Merchant Group, Calpine Corp. and Entergy-Koch Power Marketing.
Traders like the Northeast because it allows one-stop shopping. "If I want to wheel power from Maine through Massachusetts to Connecticut, I pay just one transmission charge rather than having to call each utility and schedule it," said Michael Hobbs, Mirant's marketing director for the northeastern United States.
In the South, traders say, booking transmission can be a lot more complicated -- and sometimes impossible. Utilities operate their own contained systems and advise traders when and if they have "ATC," available transmission capacity.
Electricity trading is a commodity business not unlike selling wheat, platinum or hog bellies, though it is trickier than most, according to Marce Fuller, Mirant's chief executive, because electricity can't be stored.
"Information is paramount," Hobbs said, so Mirant traders keep a constant eye on weather reports and also consult the company's on-site meteorologist. To provide further assistance, a digital board that wraps around the trading room updates information ranging from the temperature and humidity in Brazos County, Tex., to the spot price of electricity at "COB," traders' slang for the California-Oregon border.
The jobs of the traders at Mirant, Enron and the other companies didn't exist a few years ago, and neither did most of the companies. Regulated utilities, co-ops and a few big government power agencies, such as the Tennessee Valley Authority, generated almost all of the power and shipped it to retail customers over their own wires.
Now roughly a quarter of the electricity produced in the United States comes from unregulated companies that sell almost exclusively to the long-distance bulk-power trade -- the wholesale market.
-- Dan Morgan

http://www.washingtonpost.com
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

UK: Copper pushes ahead in subdued LME pre-market.

08/23/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Aug 23 (Reuters) - Copper prices rebounded in London Metal Exchange (LME) pre-market trade on Thursday, having fallen through the psychological $1,500 a tonne level the previous evening, traders said.
"There was nothing on the close last night to suggest anything happening, and there was no interest overnight, but this morning we've seen a number of the electronic screens - particularly Enron - being marked higher," said one senior trader.
Three months copper was indicated at $1,513/1,515 at 0850 GMT, up $11 from Wednesday's evening kerb close.
"The market hasn't given up the ghost yet. There's still some room to push higher, with minor technical resistance around $1,525," the trader said.
With consumer buying still largely absent, trading conditions remained subdued, however.
"The appeal of the markets is limited at the moment. Too many fingers have been burned - you can still see a lot of the specs sidelining themselves," the trader said.
"We've suffered consumer destocking in the first and second quarters. There's a bit of weakness in the U.S. dollar, which is helpful, but business confidence isn't great."
Despite periodic short-covering rallies, the overall downtrend remains in place pending concrete evidence of an upturn in the economic situation, analysts said.
"The short-term moving averages may be a bit more constructive after last week's rally, but the trend is still down. I remain sceptical for the time being," the trader said.
Aluminium also pushed higher in early trade, indicated up $5 at $1,428/1,430.
Initial resistance is evident at $1,430 with a stiffer upside barrier at $1,440, analysts said.
Nickel edged up $20 to $5,720/5,750, shrugging off news that Russia's Norilsk Nickel had restarted work at its key nickel plant, which was halted after an accident on Sunday.
"The third smelting furnace started working at 0400 local time (2000 GMT) on August 23," spokesman Yevgeny Yerokhin told Reuters. "By this time another two furnaces had already started working."
"The plant will fully restore its production volumes by the end of the day on August 24," he added.
The smelting division of the nickel plant, in the Norilsk region on the northern Siberian Taimyr peninsula, was halted on Sunday after a leak of melted metal damaged water cooling systems and electricity supply lines.
The plant's management has promised to catch up with the output arrears stemming from the accident within a month.
The rest of the complex was little moved in early trade.
Zinc was indicated unchanged at $849/852, showing little response to overnight news thatthe U.S. Defense National Stockpile Center (DNSC) had cancelled its remaining long-term zinc sales in fiscal year 2001 after it failed to make any zinc award in its latest bid invitation.
"DNSC anticipates resuming sales in the first quarter of fiscal year 2002 depending on market conditions," it said in a statement. The DNSC had been offering prime western zinc for sale by sealed bid on a monthly basis.
Lead was also unchanged at $480/483, with tin up $10 at $3,870/3,900 and alloy down $5 at $1,180/1,190 after a hefty 1,580-tonne increase in LME stocks.

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

Papers on Dabhol project not received

08/23/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: The consumers' representative for the Maharashtra Electricity regulatory Commission (MERC), ``Prayas,'' has not yet received the sheaf of documents from the Maharashtra State Electricity Board (MSEB) concerning the Dabhol power project (DPC) which it had asked for.
The MERC had passed an order on July 31 asking the MSEB to furnish the financial documents relating to some contracts signed by Enron for the project. The MSEB is learnt to be now examining the legality of making these documents public after a stern letter from the Dabhol Power Company, pointing out that the board might be liable for ``damages and legal action'' if the contractors take offence to making the documents public.
Enron wrote to the MSEB a few days after the order, contending that most of these documents had confidentiality clauses which would make it actionable. Asked about this, sources at DPC said that suppliers would be upset if their terms and conditions were made public since Enron's is only one of the plants sourcing business from them. For instance, Enron's LNG fuel supply contract with an Oman company has a confidentiality clause and would fear exposing its contract terms to the public in view of the fact that over 80 per cent of its supply is concentrated in Japan, Taiwan and Korea. ``It would be damaging for its business if our deal, which is less than 18 per cent of its business, ends up influencing its other deals,'' the source said.

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

INDIA: ANALYSIS-Poor governance hobbles India's reform drive...

08/23/2001
Reuters English News Service
(C) Reuters Limited 2001.

ANALYSIS-Poor governance hobbles India's reform drive
By Alan Wheatley, Asian Economics Correspondent
NEW DELHI, Aug 22 (Reuters) - After six months of political stalemate, the rave reviews for Finance Minister Yashwant Sinha's reforming budget have given way to the despairing conclusion that perhaps India embraces change only in a crisis.
In which case, a new wave of reforms might not be far away.
For unless growth picks up substantially from last year's 5.2 percent pace, policy experts said India would face a further deterioration in its public finances and rising unemployment that could put the world's largest democracy under serious strain.
"We can't go on without further reforms for very long because we won't be able to grow even by five percent," said Shashanka Bhide, chief economist of the National Council of Applied Economic Research.
"So the crisis is already there. If we're not going to get six percent-plus growth rates, then it's a political problem."
There is a broad consensus - on paper - on the need for a second wave of reforms to build on ground-breaking liberalisation measures rushed in after a balance-of-payments crisis in 1991.
Because its economy is fairly closed, India has weathered the current global downturn much better than most of its Asian neighbours, who would be delighted with five percent growth.
Still, output has slowed for two years in a row as post-reform momentum has petered out. And crucially, five percent growth falls far short of the 8.7 percent average needed over the next decade to achieve Prime Minister Atal Behari Vajpayee's goal of doubling per capita income, currently around $460 a year.
"Eight million people come into the workforce every year and a five percent growth rate would leave large numbers of people unemployed, which means there will be greater social unrest," said P Chidambaram, a former finance minister.
"A five percent growth rate, while statistically acceptable, is simply politically unacceptable and socially unacceptable."
COMPETITIVE POLITICS
It was to raise the economy's speed limit that Sinha unveiled in his February budget a raft of far-reaching structural reforms making it easier to fire workers and rolling back the policy of reserving certain industries for small and medium-sized firms.
The reforms are high on the list of the many blueprints for change in India but they soon became mired in what the Planning Commission aptly calls the "compulsion of competitive politics".
On a charitable view, the slow progress is a reflection of the wondrous kaleidoscope that is India's multi-party democracy.
"This is not a country, this is a vast continent in search of a synthesis in the political domain, the social domain and the economic domain," said Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry.
Less charitably, the legislative paralysis is due to the failure by an enfeebled Vajpayee to crack heads in his unwieldy 19-party coalition and force ministers to put the national interest before the myriad vested interests opposed to change.
Arjun Sengupta, a professor at the Centre for Policy Research, said the absence of a unified agenda meant each member of the coalition was ploughing its own furrow, resulting in policy inconsistency that was deterring badly needed investment.
"This is the main problem we have today: we do not have a coherent, unified policy framework," Sengupta said.
He said the reform task facing the government was all the more difficult because India's most populous and backward states were falling farther and farther behind the better-off ones.
"If the Centre cannot take care of the problems of disparity between the states, we are facing major problems which can become explosive," Sengupta, a former ambassador and IMF official, said.
Peering through the gloom, optimists point to the precedent of legislation passed without the pressure of a crisis in 1999 to open up India's insurance market to foreign firms.
They hope two equally controversial reform bills, to liberalise the crisis-ridden power sector and to make it easier to wind up bankrupt firms, will also eventually become law after they won cabinet approval last week, ending months of wrangling.
"Anybody who says reforms have been a failure in this country hasn't looked at figures on poverty very closely," said Planning Commission member N.K. Singh. He said the poverty rate had fallen in the past decade to 27 percent from 37 percent.
REFORM PRIORITIES
The list of reforms needed to sustain this improvement is lengthy. Because of its pivotal role in the economy, the power sector is many experts' number one priority. The well-catalogued troubles that foreign firms such as Enron Corp have encountered dealing with India's all-but-bankrupt state power boards have flashed warning signals to potential foreign investors.
Domestic investors have also been deterred because industrial users pay twice as much as they would in China for electricity.
Nevertheless, attempts at serious reform have foundered on twin political rocks: how to end overmanning at the power boards, estimated at 50-70 percent, and how to charge users, mainly farmers, market rates for stolen or heavily subsidised power.
D.K. Srivastava, a professor at the National Institute of Public Finance and Policy, said politicians might consider tough measures if they could be assured that benefits would be visible before they have to seek re-election two or three years later.
"Any government under any minister will say to you, How can I survive unless I can show my voters jobs?'," Srivastava said. "This is one of the basic constraints on power sector reform."
T.K. Bhaumik, a senior adviser at the Confederation of Indian Industry, agreed and said reformers were partly to blame for having failed to sell the case for change to India's mass poor.
"We did not articulate the economic reform process to the people," Bhaumik said. On privatisation, for instance, policy-makers did not spell out the consequences for jobs.
"I don't think we really understood the issues properly. We simply followed the Washington consensus and that didn't go down well with the people," he said.
As Divestment Minister Arun Shourie knows only too well. The privatisation programme he oversees, a litmus test of India's reform will, is stalled because of what Shourie calls "fractured" politics and "noise" generated by corporate interests.
Shourie said he could only hope that fading growth would jolt India's politicians into putting the country's interests first.
"We're on the cusp at the moment on the question of reforms and I feel the real circumstances in which India is placed will force the political class to do the right thing," he said.

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


I told you I had a rough day!!!  I was DYING by the last game.   I've never
felt that out of shape.   So what are you still doing here?

Becky Pitre
06/05/2000 06:45 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: Re: Hey

OK, you get sympathy with a raspberry.  That's pretty intense to slide!  I
don't even sprint.  Wow.  B

Robin Rodrigue
06/05/2000 05:30 PM
To: Becky Pitre/HOU/ECT@ECT
cc:
Subject: Re: Hey

You must be having a bad day!!  But you know it's not my fault...and there's
nothing soft about softball!!  And I slid yesterday, twice, so I have a
little bit of a rasberry on my calf.  Did that get me any sympathy??
Probably not!  I hope you finish close soon.

Becky Pitre
06/05/2000 05:25 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: Re: Hey

No.  Not softball.  SOFT is the key word.  B.
Hard ass, aren't I?

Robin Rodrigue
06/05/2000 05:24 PM
To: Becky Pitre/HOU/ECT@ECT
cc:
Subject: Re: Hey

I'm glad to know I'm not the only one that's this sore.  We should be sore
though.  We played 5 games.  And I played every second of every game.  Now
don't you feel sorry for me?!