FYI.
---------------------- Forwarded by Jeff Dasovich/SFO/EES on 08/18/2000 11:01
AM ---------------------------

Susan M Landwehr
08/17/2000 11:36 AM
To: Richard Shapiro/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Jeff
Dasovich/SFO/EES@EES
cc: Roy Boston/HOU/EES@EES, James D Steffes/HOU/EES@EES, Janine
Migden/DUB/EES@EES
Subject: O'Connor Op-Ed Piece - California

a little opinion piece from our friend at New Energy, Phil O'COnnor
---------------------- Forwarded by Susan M Landwehr/HOU/EES on 08/17/2000
01:22 PM ---------------------------

"Fein, David I. - CHI" <david.fein@piperrudnick.com> on 08/17/2000 11:20:48 AM
To: "'Susan_M_Landwehr@enron.com'" <Susan_M_Landwehr@enron.com>,
"'rboston@enron.com'" <rboston@enron.com>
cc: "Townsend, Christopher J. - CHI" <chris.townsend@piperrudnick.com>,
"Skey, Christopher N. - CHI" <christopher.skey@piperrudnick.com>, "Way, Karen
S. - CHI" <karen.way@piperrudnick.com>
Subject: O'Connor Op-Ed Piece - California

We thought that you would find the attached Op-Ed piece that appeared in the
Chicago Tribune today of interest.

PLEASE DON'T SHOOT THE MESSENGER
DEREGULATION NOT THE PROBLEM
By Philip R. O'Connor. Philip R. O'Connor is president of Chicago-based
NewEnergy Midwest, the leading provid-er of...
August 17, 2000
The firestorm raging in the San Diego area that devours homes and likely
will be followed in the spring by mudslides that will carry homes into
ravines isn't what Midwesterners are used to.
But there's no blaming Bad Ol' El Nino this time. The firestorm that has
everyone pointing fingers has to do with electric power shortages, rolling
blackout warnings and summer utility bills that have soared two and
threefold over last summer's.
To avoid "wearing the jacket," (in our Chicago patois), California's
voter-shy public officials and utility executives are blaming Bad Ol'
Deregulation.
Understandably, but regrettably, the media have tended to follow the story
line that electricity deregulation is to blame. Such stories could well
create worry that deregulation in Illinois and elsewhere in the Midwest will
lead to San Diego-style problems.
If anything, deregulation in the Midwest is avoiding the fundamental errors
California made, not only during the two years of deregulation but during
the decade preceding deregulation. In the summer of 1998 the Midwest had
some close calls of its own when triple-digit temperatures drove wholesale
electric prices for certain midday hours to as much as 100 times the normal
price.
The reigning theories in the California panic today are much like the myths
that emerged in the Midwest back then. There were allegations of price
gouging by power producers and warnings that we were moving too fast toward
deregulation--even though there was no retail deregulation and competition
in the Midwest at that time. In fact, it was the lack of retail,
customer-level competition that allowed the wholesale market to fly
completely out of control. Since 1998, the Midwest has begun to get its act
together.
In California, the initial reactions are to put the toothpaste back in the
tube and to burn the witch. But my native state still will need to face up
to its legacy of thinking, "I'll do that tomorrow," while at the same time
trying to regulate free markets as if there were no tomorrow.
Deregulation, which started in California in the spring of 1998, is but a
messenger of painful truths. The truth is that the chickens are coming home
to roost and that any attempt to retreat into the past will produce more
power shortages and higher prices.
There are some big differences between Illinois, the first state in the
Midwest to open up the electric network for customer choice, and California,
the first state in the nation to open up the network for competition.
In spite of a booming California economy spurring massive increases in
electrical demand, not one new power plant came on line during the
1990s--and none since. California thought it could rely on power plants in
other western states, but those plants are now serving growing loads in
their own areas.
In Illinois and elsewhere in the Midwest, new clean natural gas-fired plants
are able to serve during periods of peak demand. Gov. Ryan has convened a
committee to review state and local government handling of proposed "peaker"
plants. It seems likely to keep strict environmental standards in place
while helping to identify ways to reduce uncertainties, speed up
approvals--or disapprovals--and thereby reduce costs and improve power
reliability.
While the Midwest is realizing the benefit of newly constructed transmission
lines that allow access by Chicago and other areas to competitive power
supplies, many areas in California, remain too dependent on just a few local
power plants.
In California, once a utility finishes collecting "stranded-cost" charges to
pay off investments in nuclear plants and high-cost power contracts, price
caps for plain, old utility service based on rates in place prior to
deregulation are lifted. That's why San Diego Gas & Electric, the first
utility to finish collecting stranded costs, merely had the job of acquiring
power in the wholesale market and passing along the cost to customers who
had not switched to new competitive suppliers.
In Illinois and Ohio, by contrast, utility rates are capped at reduced
levels for at least five more years for customers who do not switch.
Illinois and the Midwest have stayed away from such Rube Goldberg
contraptions as the California Power Exchange that was supposed to serve as
a sort of mandatory clearing house for wholesale power transactions but
instead became a sort of private regulator that regulated no better than the
government used to.
The rules of the game in the Golden State could not have been more skewed
against giving opportunities for customers to switch to new competitors or
to take other precautions to avoid high summer power prices during an
unexpected heat wave. My NewEnergy colleagues in California have faced an
ever shifting set of increasingly inhospitable rules. In Illinois, utilities
and new competitive suppliers, have had more flexibility to offer products
that let customers choose between fixed prices that balance out the ups and
downs of the market or prices that float with the seasons.
Importantly, Illinois regulators have been reasonably quick to approve
proposals that let utilities and new suppliers, such as my company, work out
contracts with commercial and industrial customers to reduce their
electrical demand during peak summer hours in return for payments. Such
arrangements, less available in California, are key to avoiding blackouts
and blunting big-price spikes.
As chairman of the Illinois Commerce Commission from 1983 through 1985, I
remember when the costs of new nuclear plants showed up in electric
rates--today's stranded costs. I know what California utility commissioners
must be going through as they seek solutions for problems with roots going
back at least a decade. They'd better have thick skins and nimble minds.
I'll never forget former Gov. Jim Thompson, whose 1982 campaign I co-managed
and who appointed me to the ICC, saying, after several big rate increases,
the political equivalent of "I've never seen this man before in my entire
life." Having been yelled at on the bus by angry consumers a few times on
the way to the office, I could only be happy that Thompson had the good
political judgment to say, "I know not the man," on his own without my
prompting. I felt proud, not betrayed.

David I. Fein
PIPER MARBURY RUDNICK & WOLFE
203 North LaSalle Street
Suite 1800
Chicago, Illinois  60601
312-368-3462
(Fax) 312-630-7418
david.fein@piperrudnick.com

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http://www.piperrudnick.com/
____________________________________________________________________________


fyi

 -----Original Message-----
From: 	Evans, Mark (London Legal)
Sent:	Thursday, November 01, 2001 3:49 PM
To:	Haedicke, Mark E.; Walls Jr., Rob
Subject:	ENRON EUROPE

Mark, Rob

My apologies for adding to your burden at this difficult time. However hopefully this might clarify our discussions of yesterday and enable us all to move on quickly.

Enron Europe and its directors are facing two related issues:

1. Continuing to trade

The directors of EEL and its subsids have to be satisfied that there is a reasonable prospect of avoiding an insolvent liquidation. This is a fairly low hurdle to pass and, in our situation, calls made on Corp. for cash have been promptly met and we have read the news today of a new confirmed facility so we already have a fair degree of comfort.

The directors meet with independent counsel tomorrow but I believe that they will probably come out of that session asking for nothing more than a confirmation, by email to say Michael Brown, but from the top - Jeff or Greg, of where they currently see things, ie a positive prognosis for the future. That piece of electronic paper should be enough to enable the directors to reasonably conclude that we are not hurtling into Chapt 11 and to continue to trade. It would also be very helpful if that email could confirm that Michael would be promptly informed if things took a downward turn.

I would be happy to draft a note but wonder whether the best way of quickly putting this to bed might be for a conversation to be had with Jeff/Greg to see what they would be prepared to say. That could then be drafted up and sent over.

2. Filing accounts

The directors of Enron Europe and its subsids cannot file accounts on a going concern basis unless they are comfortable they will have adequate funds in the medium term to run their businesses. The hurdle here is higher than in point 1 above as prospective cash shortages would require the accounts to be qualified long before the directors would have to stop trading under point 1 above. So more comfort will probably be required here, which could include further details of the new facility (drawdown conditions and maturity periods) and prospects for further facilities being signed. This would back up the usual support letter.

I should add that we have not actually received this year the usual support letter from Corp. addressed to Enron Europe and its subsids. I don't know if it has been formally requested but we will definitely need to see that document this time around. Could you please point me in the right direction for that?

We now have until the end of January to file the accounts so point 1 above is definitely the immediately crucial issue. We would however like to resolve the accounts issue as soon as possible. Perhaps we could liaise with Joel to get a letter drafted and then signed by Jeff or Greg?

That's it. It really boils down to requiring a bit more information from Corp. There is absolutely no desire to cause problems here, just a desire to put in place the right pieces of information (which we are sure are out there but we need to collect them in) which will safeguard the European directors personally and enable them to move on from these concerns to the more pressing business of Q4.

Many thanks.

								Mark


As the father of two juvenile diabetics and a Walk Co-Team Captain (with
Shonnie Daniel) here at Enron, I am writing to request you to participate in
Enron's drive to help raise money for the Juvenile Diabetes Foundation's
("JDF") annual Walk to Cure Diabetes.  The Walk takes place at 9:00 a.m.,
Sunday, November 5, 2000, at Sam Houston Race Park.  The Walk itself is
extremely enjoyable and it is a festive occasion with hospitality tents,
food, music and lots of kids.

  You can participate by walking (and obtaining sponsors) or by sponsoring a
walker (such as myself or my children).  Last year, the ENA legal team
contributed over $5,000 to the Walk (and there is a dollar-for-dollar Enron
match), which put us in the top 5 teams at Enron.

If you intend to contribute   and walk, let me or Shonnie know and we will
get you the necessary forms. If you don,t intend to walk, your sponsoring
contributions should be made by check payable to &JDF8 and you can give that
check to me or Shonnie.  If you want to participate in either way and want me
to call you with more information, there is a sign up sheet on my office
window across from the Ladies Room on 38.

Juvenile diabetes is an auto-immune disease where the child's immune system
attacks and destroys his or her pancreatic cells that produce insulin.  As a
consequence, my children need daily doses of insulin to live, and they must
closely regulate their diet, exercise and blood sugar. This treatment
involves at least 2 insulin injections and 5 blood tests a day, and they will
never "outgrow" this disease.

Heart disease, stroke, kidney disease, blindness, loss of limbs and nerve
damage are just some of the complications that are associated with diabetes.
As you can imagine, with such possibilities, there is also a significant
psychological price to pay with this disease.  The prospect of a cure )
funded in part by contributions from friends like you ) does truly make all
the difference to the outlook of these young people by giving them hope for
the future.  Experts believe that with adequate funding of diabetes research,
a cure or at least less intrusive and more effective treatments are possible
within the next five years.

Thank you for your consideration of this worthy cause.

 Bart Clark
 (36119)


Commencing with an NHK (Japanese public TV) report and quickly spreading to
media inquiries and wire reports, earlier today a story spread through Japan
that the Enron affiliate E Power has immediate plans to build at least one
large (1000 MW) power plant.   In fact,  appears that E Power has been
pursuing this prospect on a smaller scly, but nothing has progressed to high
level management or board approval.

We are in the process of providing interviews and responding to inquiries
from major Japanese media and others.  These inquiries have been in
anticipation of the March 21 partial liberalization of the Japanese power
sector.  These discussions also are being utilized to confirm that Enron will
be opening a merchant office in Japan.  This is in addition to the EnCom/E
Power affiliate, which is focused on industrial power generation.  Attached
are the Q&As we are using in response to media inquiries.


Any interest in listening in on this call on February 22?  Let me know so I
can register us.

Lorna

 -----Original Message-----
From:  webmaster@cera.com@ENRON
[mailto:IMCEANOTES-webmaster+40cera+2Ecom+40ENRON@ENRON.com]
Sent: Tuesday, February 06, 2001 5:13 PM
To: insights@cera.com
Subject: CERA Conference Call and Web PresentationThe Final Wave of RTO
Filings: The Ball is in FERC's Court - CERA Conference Call

Title: CERA Conference Call and Web Presentation*The Final Wave of RTO
Filings: The Ball is in FERC's Court
URL: http://www20.cera.com/eprofile?u=35&m=2243

ELECTRIC TRANSMISSION and NORTH AMERICAN ELECTRIC POWER CONFERENCE CALL and
WEB PRESENTATION

A Cambridge Energy Research Associates Conference Call & Web Presentation

TOPIC
The Final Wave of RTO Filings--The Ball is in FERC's Court

* Some Surprises from the Independent System Operators

* Will the Deadline Be Met?  The Countdown to December 15, 2001

* The FERC: A Soft Stance on RTO Filings?

FORMAT
At the time listed  below, our speakers will address this topic for
approximately 30 minutes, with accompanying graphics presented on the
internet,
followed by an open question and answer period.

SPEAKERS
David Clement, CERA Associate Director, Electric Transmission
Hope Robertson, CERA Senior Associate, North American Electric Power
Larry Makovich, CERA Senior Director, North American Electric Power

TIME
1:00 P.M. Eastern, Thursday, February 22, 2001

ELIGIBILITY
Clients eligible to participate in this conference call are those who
subscribe
to the Electric Transmission Advisory Service or the North American Electric
Power Advisory Service.

TO ENROLL
To enroll, please return this form via fax to Kari Paakaula at (617) 497-0423,
or enroll via e-mail at kpaakaula@cera.com before 4:00 P.M., Wednesday,
February 21, 2001.

For the audio portion of the call, please call in on one of the following
numbers approximately 10-15 minutes before the call:

AUDIO & INTERNET
Within the United States:  1-800-946-0715
Outside the United States:  (719) 457-2643
Confirmation Code: 507712
Title of  the call:  CERA Call

For the internet portion of the call (audio is by telephone), log on to the
internet approximately 15-30 minutes before the presentation to ensure
technological compatibility.

1. Point your browser to http://vcast.premconf.com. (Do not include WWW
in the URL)
2. At the VisionCast Home Page, click on "Attend a Private Conference."
3. Follow all directions given regarding additional technology required
(if any).
4. You will be prompted for an Event Name, your name, and your company name.
Event Name: vc507712
5. Fill in all fields and click "Continue."

System Requirements and Suggestions:
* Internet connection not reliant on the phone line you will use for the call.

* A Java-enabled browser, such as Microsoft Internet Explorer 3.02 or higher;
Netscape Navigator 3.02 or higher; or Sun Hot JAVA(tm)

* Close all desktop applications and disable your screen saver

Technical Assistance:
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signal for technical assistance by pressing *0 (star, zero) on your telephone
keypad after you have connected to the audio portion of the conference.

International callers: Please re-dial and ask  the operator for assistance
before giving the confirmation code.

For more information, please contact Kari Paakaula via e-mail at
kpaakaula@cera.com or via telephone at (617) 441-1362.

A recording of this call (audio only) will be available until March 22, 2001.
To access this recording, please call 1-888-203-1112 (within the U.S.) or
(719) 457-0820 (outside the U.S.). Please use confirmation number 507712 to
access the call.

**end**

Follow above URL for full report.

*********************************************************
Come Shoot the Rapids with us at CERAWeek2001, "Shooting the Rapids:
Strategies and Risks for the Energy Future" in Houston, February 12-16,
2001!
For more information and to register, please visit
http://www20.cera.com/ceraweek/
*********************************************************

E-mail Category: Conference Call
CERA Knowledge Area(s): North American Power,

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This electronic message and attachments, if any, contain information
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California Gold!!!

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TDSDealTicker
? The Sitara deal Id will show for non EOL deals entered into Sitara

TDS Position Manager
? Groups of groups are supported when defining curve groupings.
? New filters have been added to the Position Manager to allow viewing the
positions associated with "Changed" & "New & Changed" Positions. When looking
at the positions with the changed filter set, the net change in the position
from the official PortCalc is reported.
? When viewing "New" or "All" deals in the Position Manager right-clicking
the mouse over a position for a specific period provides a menu option to
view the deals behind that position.  This feature is not available when
viewing a roll-up desk (i.e. ALL-WEST, ALL-EAST, etc.)

If you have any questions or concerns, please call Russ Severson (713) 853
-7386


Wow.  Have a great trip.  I'll anxiously await your return.

Best,
Jeff

	"Gigi Coe" <gcoe@firstworld.net>
	03/07/2001 10:59 PM

		 To: <Jeff.Dasovich@enron.com>
		 cc:
		 Subject: Re: Thanks

Yes - it truly was wonderful to see you.  Swan's it is.  Soon.  I have a too
hectic March and then will be in Europe for two weeks in April so it will be
late April or May before I see you again.  My 50th BD treat to myself is to
take Malcolm to London and Greenwich and Portsmouth and Paris and see all
the Napoleanic Wars sites.  Especially Nelson's ship the Victory which is in
Portsmouth.  (Mike and Kate are coming along, but I think they will probably
squeeze in a trip to Ireland to see horses...)

Anyway - realistically, it'll be farther along into spring.

Until then,  G.
-----Original Message-----
From: Jeff.Dasovich@enron.com <Jeff.Dasovich@enron.com>
To: Gigi Coe <gcoe@firstworld.net>
Date: Wednesday, March 07, 2001 2:26 PM
Subject: Thanks

>
>It was fantastic to see you.  You look and seem just great.  Don't be a
>stranger.  Let's go to lunch very soon.
>
>Best,
>Jeff
>
>


Thanks for the quick response. Let's hook up early next week to discuss a plan of attack on DWR.  Enjoy your days off.

BT

 -----Original Message-----
From: 	Dasovich, Jeff
Sent:	Wednesday, September 05, 2001 9:43 AM
To:	Tycholiz, Barry
Cc:	Ward, Kim S (Houston)
Subject:	RE: DWR Gas Supply

Barry:

Good to meet you last week.  I'm out of the office until Monday, but will get on this as soon as I return.  Of this group, Dynegy is involved in the State Senate's investigation.

Best,
Jeff

 -----Original Message-----
From: 	Tycholiz, Barry
Sent:	Tuesday, September 04, 2001 6:27 PM
To:	Dasovich, Jeff
Cc:	Ward, Kim S (Houston)
Subject:	DWR Gas Supply

Jeff, further to our conversation... this is the list of companies that have entered into contractual agreements with the DWR. I don't know if this means they have transaction but perhaps between Kim Ward and yourself, you can advise.

What I need to know is the legal status/issues ( if any ) of any of the companies listed here today as it relates to the state of California.
Pan Canadian Energy Services, Occidental Energy Marketing, Dynegy Marketing and Trading , Texaco Natural Gas, BP Amoco, and Coast Energy Group.

Can you advise If any of these companies form part of ongoing legal action against the state?

Once I know this, then we can decide on a plan what we should discuss with Mark Baldwin.

Thanks in advance.

BT


Do you want me to have him call you even if I don't go out with them?


Unfortunately, I will miss your farewell at Slick Willie's on January 3rd.  I
am sorry that I won't be able to drink a beer with you as a send off, but
perhaps we can have one in London later in January as your welcome to
London.  I will be in Miami on January 3rd, hopefully celebrating an Oklahoma
win in the Orange Bowl earlier that day.  David found us tickets to the
game.  Not great seats, but they are in the stadium.  Hey, it's not UT, but
it should still be fun to go.

I will miss you and your wit and constructive cynisism in Houston.  But I
know that I can count on you to be just as vocal from London!  I plan to be
there at least quarterly in 2001, and will definitely welcome your first hand
observations on operational areas that may need attention.  Hopefully between
e:mail and voice mail we can definitely keep in touch.

Tell Ann that I hope that this will be a great adventure for her and the
whole family.  I think that it is a wonderful time in your children's lives
to give them this experience.    Have fun -- and set them straight!!


Any instructions?
----- Forwarded by Steven J Kean/NA/Enron on 01/18/2001 05:34 PM -----

	Linda Robertson
	01/16/2001 04:54 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc: Richard Shapiro/NA/Enron@Enron
		 Subject: Ken Lay as NASA Administrator

I received a call today from Rep. John Culberson about a nascent campaign
underway to nominate Ken Lay as NASA Administrator.  Rep. Culberson has
broached this idea with Eugene Cernan, who liked the idea .   The Congressman
asked that we check to see if Ken is interested, as he would like to
orchestrate a campaign on Ken's behalf.  I promised the Congressman to check
as to Ken's interest.  Steve, should I snuff this out?  Give him
encouragement?  I need to call the Congressman back very soon.  Thanks.


A dad walks into a market followed by his ten-year-old son. The kid is
spinning a 25 cent piece in the air and catching it between his teeth. As
they walk through the market someone bumps into the boy at just the wrong
moment and the coin goes straight into his mouth and lodges in his throat.
>
> He immediately starts choking, going blue in the face, and Dad starts
panicking, shouting for help.
>
> A middle-aged, non-descript man in a gray suit is sitting at a
> coffee bar in the market reading his newspaper and sipping a cup of
coffee.   At the sound of the commotion, he looks up, puts his coffee cup
down on the saucer, neatly folds his newspaper and places it on the counter.
Then he gets up from his seat and makes his unhurried way across the market.

> Reaching the boy, the man carefully takes hold of the boy's testicles and
squeezes gently but firmly. After a few seconds the boy convulses
violently and coughs up the 25 cent piece, which the man catches in his free
hand.
>
> Releasing the boy, the man hands the coin to the father and
walks back to his seat in the coffee bar without saying a word.
>
> As soon as he is sure that his son has suffered no lasting ill-effects,
the father rushes over to the man and starts effusively thanking him saying,
"I've never seen anybody do anything like that
before -- it was fantastic. Are you a doctor?"
>
> "Good heavens, no," the man replies. "I am a tax collector for
the Internal Revenue Service."
>


Dale,

To follow up on my earlier message. Anjam expressed his concern
that Sharad is holding off on our offer. I would consider bumping it up to
55,000
with a sign-on bonus. We badly need fresh talent.

 I shall be in Australia next week. If you need
any additional intervention from us, please, call Stinson.

Vince

Vince J Kaminski
07/06/2000 08:56 AM
To: Dale Surbey/LON/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT
Subject: Numbers for Sharad Agnihotri

Dale,

I was very impressed with Sharad and I think that we should consider paying
offering him
 o50,000. I am not sure about guaranteed bonus. What do you think?

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 07/06/2000
08:59 AM ---------------------------

	Enron Capital & Trade Resources Corp. - Europe

	From:  Anjam Ahmad                           07/05/2000 10:56 AM

To: Dale Surbey/LON/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
cc: Kate Bruges/LON/ECT@ECT
Subject: Numbers for Sharad Agnihotri

Hi Dale (& Vince),

I have now gathered everyone's views and the consensus is that we should hire
Sharad to work with me on front-office pricing and so we should proceed to
the offer stage.  As you can see his salary is o43,500 currently and he
appears to have a guaranteed bonus of o25,000 for next year.  He would join
for >o50,000 from my discussions with Alex Blair, the consultant.  He is very
interested in Enron, but is also talking to Morgan Stanley.  I discussed with
Vince, who recommended that Sharad should come in at the same level (rank) as
Kirstee Hewitt; I would also like to arrange for a direct reporting line to
me for Sharad.

Regards,

Anjam
x35383

P.S. Kate:  I have attached the agencies terms and conditions below:

---------------------- Forwarded by Anjam Ahmad/LON/ECT on 05/07/2000 16:21
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Alex Blair <Alex.Blair@alexmann.com>
05/07/2000 15:29

To: "'Anjam Ahmad'" <Anjam.Ahmad@enron.com>
cc:

Subject: Numbers

Anjam,
??????? as requested please find enclosed details on Sharad's numbers:
??????? Basic Salary : o40,000
??????? Car Allowance : o3,500
??????? (paid in Cash)
??????? Annual Bonus : o13,000 (this bonus was paid for ???????
99-00?? ??????? ??????? ??????? 8 mths work April-Dec)

Total o56,500

Sharad has been informed that his bonus payments for year 00-01 will be
floored at o25,000.? Sharad's expectations therefore are to receive a base
salary of between o57.5-o60K plus bonus.
I hope this is of use and ask that if you have any questions that you do not
hesitate to call.

Alex Blair
Senior Consultant
alex.blair@alexmann.com
Tel:0207 891 6671
Fax:0207 905 1313
Web: <http://www.alexmann.com>
"The Alexander Mann Group has a stated policy for the use of electronic
mail which is rigorously enforced throughout the Group. The contents of
this e mail should meet the requirements of the policy - if you would
like further details please forward this message to info@alexmann.com
<mailto:info@alexmann.com> or call 0207 242 9000.
The information contained in this electronic mail message is
confidential. It is intended solely for the use of the individual or
entity to whom it is addressed and others authorised to receive it. If
the reader of this message is not the intended recipient, you are hereby
notified that any use, copying, dissemination or disclosure of this
information is strictly prohibited."


http://www.scottgertner.com/
SPYRO GYRA  June
at Scott Gertner's SKYBAR
Smooth, fusion jazz.

Twenty years ago, long before the coining of the radio-generated buzzwords
"New Adult Contemporary" or "Smooth Jazz," Spyro Gyra was jamming and
having a grand old time creating their own instrumental hybrid, incorporating
elements of R&B, Latin, Brazilian -- whatever struck their collective fancy.
Their infectious sound has become a forerunner of today's popular style.
=========================================================
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??????????????????????????????????????????????????? 713.520.9688
713.520.9905 FAX  www.scottgertner.com
 - 46399


The following is the manual entries that we need booked for May production:
Transport Expense to Texas Intercompany - ($1,721,448)
Transport Revenue to Ed Intercompany - $1,721,448
Transport expense to Texas - Accrual ($198,000)
Accrual income to Sharpe - $198,000

Please call with any questions.
PL


Hey, we will call you tomorrow from Jean's house.  Will you be home or
are you going somewhere for Thanksgiving?  What is the status of your
stock price 2day?


Please forward to Advisory Committee
----- Forwarded by Steven J Kean/NA/Enron on 09/20/2000 09:47 AM -----

	Ann M Schmidt
	09/18/2000 08:59 AM

		 To: Mark Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Meredith
Philipp/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Mary
Clark/Corp/Enron@ENRON
		 cc:
		 Subject: Enron Mentions

Manager's Journal: Heir to Greatness
By Gary Hamel

09/18/2000
The Wall Street Journal
A38
(Copyright (c) 2000, Dow Jones & Company, Inc.)

Sometime in the next few months, the board of General Electric will anoint a
successor to the world's most
celebrated corporate leader. Running GE may be, as Jack Welch claims, the
best job in the world, but his
successor may find it to be one of the toughest as well -- not because
anything is going wrong at GE, but because
so much is going right, and has been for so long.

Mr. Welch's successor will inherit a company that is already stupendously
valuable, that has already shed most of
its unwanted pounds, and has already set a string of performance records. How
do you do better than that?

This is more than a rhetorical question for GE's next chairman. Pity, for a
moment, a few other heirs to greatness.
Doug Ivester was gone just 25 months after following the legendary Roberto
Goizueta at Coca-Cola. Dale Morrison
lasted less than four years at Campbell Soup after taking over from
cost-cutter extraordinaire David Johnson. British
Airway's Bob Ayling got pushed out after he had struggled unsuccessfully to
fill the shoes of Colin Marshall. And
Durk Jager prematurely stepped down as Procter & Gamble's chairman after
failing to live up to the lofty standards
set by earlier P&G leaders.

Pretenders

None of the pretenders succeeded in building greatness on top of greatness.
In three of these cases, the board
brought back a recently retired CEO or chairman to shore up investor
confidence. Sadly, Goizueta, who died in
October 1997, could not reprise his earlier success at Coca-Cola.

GE's next chairman will have to exceed Mr. Welch's near-mythic
accomplishments if GE is to continue to fly high.
Like Cisco, Intel, Wal-Mart, Nokia and any other company that is exploring
the outer atmosphere, GE must struggle
ever harder to resist the laws that threaten to flatten the arc of success:
the law of large numbers, the law of
diminishing returns, and the law of averages.

-- The law of large numbers: Over the past decade GE's market value has
multiplied eleven-fold -- to more than $560
billion from $50 billion at the end of 1990. Sustaining such a breathtaking
pace of value growth gets progressively
harder as a company gets bigger. As the most valuable company on the planet,
GE would need to grow its market
cap to nearly $3 trillion over the next five years to match the 42%
compounded annual growth rate it has achieved
over the past half-decade.

One way of escaping the law of large numbers is to divide big things into
small things. One option for GE would be
to spin out its low-growth businesses as separate companies. Over the past
five years, profits in two sectors --
appliances and plastics -- were essentially flat. Holding these businesses
may generate a positive return on
invested capital, but no investor would keep them inside a growth portfolio.
Why should GE?

If GE's next chairman can't muster the courage to leave the dawdlers behind,
perhaps he -- or she -- should spin out
the stars. Of the eight large business segments for which GE reports results,
two -- GE Capital and NBC -- account
for nearly 50% of GE's five-year profit growth. Sure, GE Capital has
benefited from its parent's dirt-cheap cost of
capital, but from an investor's point of view, these advantages may be more
than offset by the drag of laggardly
earnings growth in other GE businesses. Looking beyond capital and
broadcasting, there are probably a dozen
other high-growth candidates for spin-outs in GE's other sectors.

Mr. Welch's successor shouldn't be afraid to disassemble GE. After all, the
goal is not to make GE the "world's
most valuable company," but to make its shareholders the world's most richly
rewarded. Shareholders don't care
whether GE's stock appreciates or whether it's the stock of companies that GE
has disgorged. Breaking up is hard
to do. But Mr. Welch's successor may find that turning GE into the world's
first $3 trillion company is even harder.

-- The law of diminishing returns: Even the most successful strategies lose
their potency over time. For most of Mr.
Welch's tenure, GE's strategies of choice have been cost cutting and
acquisitions. From its unflinching approach to
downsizing in the mid-1980s, to its more recent dedication to e-business, Mr.
Welch's GE has been imaginative
and unrelenting in excising waste. At the same time, GE's top line has been
buoyed up by a tidal wave of
acquisitions -- more than 300 in the past three years, many outside the U.S.

The payoff to all this cutting and deal making has been steadily accelerating
earnings growth. Net earnings grew
10.8% in 1996, 12.7% in 1997, 13.3% in 1998 and 15.3% in 1999. Looking
forward, power dieting and binge buying
may not be enough to keep GE's earnings escalator rising ever skyward.

There are already signs that GE may be nearing the asymptotic end of the
efficiency curve. Between 1981 and
1990, GE's revenue per employee increased by 187%. Yet over the last decade,
revenue per employee grew by a
more modest 55%, and has been essentially flat since 1996. And while
operating margins in GE's manufacturing
businesses have been steadily improving, GE's net profit margin, after all
adjustments, has remained pretty much
unchanged over the past five years.

What about acquisitions? While industry consolidation still has a way to run,
particularly outside the U.S., it seems
inevitable that it will become harder and harder for GE to find under-priced,
under-managed fixer-uppers. After all, at
the current furious pace of corporate coupling, the U.S. would be left with a
single company by 2010.

That leaves "e." E-commerce will drive new efficiencies into GE's business
processes, but GE is not alone in
striving to e-enable its businesses. E-commerce is rapidly becoming an
information technology arms race -- with
competitors making tit-for-tat investments to reap tit-for-tat efficiency
gains. And while efficiency-besotted CEOs are
counting on the Internet to shrink procurement costs, savvy customers will be
just as creative in using the Net to
beat down prices. Whether GE's enthusiasm for all things "e" produces
long-lasting, peer-beating profit growth
remains to be seen.

GE's next chairman may want to borrow a lesson or two from Enron, which has
been voted America's most
innovative company five years running and displaced GE as the "best managed
company" in Fortune magazine's
last "most admired" survey. Forty percent of Enron's $63 billion market value
comes from businesses the company
wasn't even in three years ago -- all of them are homegrown.

Forget acquisitions. With GE's powerful brand, global reach and fearsome
capacity for execution, there's no reason
GE shouldn't surpass Enron as a business-building champ. It is entirely
reasonable to expect that GE could create
10 to 20 new businesses over the next few years -- with each adding an
average of $5 billion to GE's market value.

Sooner or later GE is going to need an entirely new genre of wealth-creating
strategies -- and a much more
aggressive commitment to internally generated new business development may
well be the most promising
candidate.

-- The law of averages: Over the past five years, GE's price/earnings ratio
has tripled, from just over 16 to more than
48. The company is currently selling at a 65% premium to the market average
P/E. But being a standout performer
for more than a few years at a time is a daunting challenge for any company,
large or small. It seems that no
company can forever escape the steady tug of mediocrity.

At the end of 1999, the Standard & Poor's 500 included 326 companies that had
been in the index for the entire
decade. Fifty-five of these companies, among them GE, managed to deliver top
quartile shareholder returns in as
many as four years out of the previous 10. GE's top quartile results came in
1996, 1997, 1998 and 1999. If GE's
new chairman manages to extend this streak for another four years, GE will
set a new world record, for none of the
326 S&P veterans achieved top quartile returns in as many as eight years out
of 10 during the '90s, and only four
companies -- Oracle, Home Depot, Intel and Cisco -- cleared the bar seven
years out of 10.

If GE can fire up the entrepreneurial spirit in each of its employees, it
just might beat the odds. Like most large
companies, GE seems to be reluctant to encourage employees to start new
businesses by giving them equity
stakes in new ventures. While this isn't the only way to build businesses,
it's one that can't be ignored in a world
where talented employees are often lured away by the promise of a big chunk
of equity in a start-up. GE already
invests in start-ups via GE Equity -- to the tune of $1.5 billion in 1999.
Last year GE also repurchased $1.9 billion of
its own stock. One wonders just what kind of new wealth GE's own employees
might have been able to create if
they had been backed by this kind of capital?

To have any hope of escaping Mr. Welch's shadow, and matching his success,
GE's next chairman will have to
keep a simple truth in mind: If you're trying to achieve unprecedented ends,
you're going to need unprecedented
means. A break-up, a few major spin-outs, a bottom-to-top initiative focused
on making GE as good at creating bold
new businesses as it is at improving existing businesses, an absolute
commitment to doubling or tripling GE's
internal growth rate -- these are all potential candidates for the next big
thing at GE.

Maybe, just maybe, GE will continue to fly high with its current success
recipes. One could argue that as long as
there are companies around the world that aren't as well-managed as GE, Mr.
Welch's magnificent buy-and-improve
engine will have plenty of fuel. Or that GE's Web-smitten executives will
discover Net advantages no one else has
yet dreamed of.

After 20 years under Mr. Welch, GE is habituated to meeting new challenges.
Moreover, GE has a long history of
organizational and managerial innovation -- it was among the first to
decentralize along business unit lines, embrace
disciplined strategic planning, delayer its hierarchical organization, and
commit itself to becoming Webified from
stem to stern. Like the Internet, GE is diverse, global, flat, meritocratic
and non-hierarchical.

Maybe all of this will help GE to become one of the first companies to marry
the rule-busting, business-building
ethos of the "new economy" with the "old economy" virtues of scale,
efficiency and quality. If GE succeeds, there
will be no more talk of new economy and old economy, for GE will have managed
to create a perfect synthesis of
old and new. And the most perfectly developed specimen of the industrial age
will have become the archetype for
the post-industrial corporation -- a company that uses its size and
operational excellence to crush the upstarts, and
its industry-transforming innovation to constantly surprise the old farts.
This is a worthy, and necessary, aspiration
for the next leader of America's pre-eminent corporation.

Mr. Hamel is chairman of Strategos, a consulting company based in Menlo Park,
Calif. He is author of "Leading the
Revolution" (Harvard Business School Press, 2000).

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

Spiraling energy costs creating near-crisis situation
The heat is on consumers
Monday, September 17, 2000

By DAVID IVANOVICH
Copyright 2000 Houston Chronicle Washington Bureau

http://www.chron.com/cs/CDA/printstory.hts/topstory/670583

Abreast of the Market
S&P Index Seemed Tranquil This Year, but...
By E.S. Browning
Staff Reporter of The Wall Street Journal

09/18/2000
The Wall Street Journal
C1
(Copyright (c) 2000, Dow Jones & Company, Inc.)

Amid the storm that has swept the Nasdaq Composite Index this year, the
Standard & Poor's 500-stock index
looks like a sea of tranquility.

Since Jan. 1, it has gone almost exactly nowhere, starting the year at
1469.25 and closing Friday at 1465.81.

But beneath the quiet surface, a furious battle is raging among the S&P's
components, with some of last year's
losers becoming this year's winners.

Some of the most amazing performers are the natural-gas companies, which are
up about 70% as a group so far
this year. "The natural-gas index looks like an Internet stock from a year
ago," says Richard Bernstein, chief
quantitative strategist at Merrill Lynch.

El Paso Energy is up 70% so far this year. KeySpan Energy is up almost 60%.
On top of its stock gain, KeySpan
offers something some investors aren't familiar with: a 5% dividend.

Now the big question is, should investors be plowing their money into the
recent winners, which also include drug
stocks, brokerage-firm stocks and bank stocks? Or is their surge a flash in
the pan that will evaporate as investors
get over their jitters in the fall?

Higher oil prices helped send utility stocks up on Friday, and most other
stocks down. The Dow Jones Industrial
Average fell 1.45%, or 160.47 points, to 10927.00, leaving the blue-chip
index down 2.62%, or 293.65 points, for the
week.

The Nasdaq Composite Index was down 2.01% on the day and 3.6% on the week.
The Dow Jones Utility Average,
however, rose 1.52%, or 5.94 points, on Friday to a record 397.04, leaving it
up 2.78% on the week.

The S&P 500, still the broadest of the major market indexes, dropped 1% on
Friday. But it is just 4% off its record
of 1527.46, set March 24. In contrast, the technology-heavy Nasdaq index is
down 24% from its March 10 high.

Within the S&P 500, though, there have been some dramatic moves. Utilities
are up an astounding 40%, just in the
time since the S&P peaked on March 24, according to Ned Davis Research.
Financials and drug stocks are up
about 16% each -- again, since the S&P hit a record.

Communications stocks, on the other hand, have fallen 25% in that period. The
S&P 500's big tech stocks are
down more than 19%.

Some analysts think the move that is under way is broader than a sector
rotation. Some of the least-wanted stocks
of 1999 have become desirable this year. As huge stocks, such as Qualcomm and
Yahoo!, have sagged, smaller,
once-neglected S&P companies, such as Reebok and Allied Waste, have soared.

The switch can be seen in an index called the Value Line Arithmetic Index.
That index tracks about 1,700
companies and doesn't give any extra weight to the ones with a larger market
value. It is a closer reflection of the
average company, rather than the biggest companies.

So far this year, it is up 13%, eclipsing the S&P 500. The S&P 500 is
weighted according to its members' market
value, which means that it is dominated by the larger stocks. The Value Line
index's strength compared with the
S&P 500 is a clear indication that some of the smaller stocks are making a
comeback, at least for now.

Some of the gains do seem to reflect special circumstances. Utilities have
been helped by an explosion in
natural-gas prices and by a search for stable investments in a turbulent
stock market. Many banks and brokerage
firms have benefited from takeover speculation: Merrill Lynch is up 66% so
far this year; Lehman Brothers is up
69%.

If takeover expectations fade, the brokerage stocks risk a slide. And energy
companies depend on oil and gas
prices, which can make them volatile. Natural-gas bulls note, however, that
natural-gas prices are expected to
remain high for some time, which could keep propelling that group ahead.

"Very few people thought energy prices would remain this high for as long as
they have," notes Donaldson, Lufkin &
Jenrette investment strategist Thomas Galvin. "So you still have people
underweighted both areas, energy and
utilities."

That means that there still are plenty of skeptics out there. If gas prices
stay high, the stocks have room to rise as
skeptics are won over.

But the real trick during the coming months may not be to be in the right
sector, but to be in the right stock, both
men say.

At a time when the economy is slowing and earnings growth will be more
difficult, "you probably want higher-quality
stocks, because they have more stable earnings," Mr. Bernstein says.

When tech stocks or utility stocks are in favor, it is enough to buy a stock
from the group and your stock will go up.
Now investors need to be more selective.

"El Paso and Duke Energy are extremely well managed," says Mr. Galvin, "as is
Enron. But the rising tide in
utilities has lifted all boats, and not all utilities are well enough managed
to take advantage of all opportunities."

The key is choosing the stocks that will withstand the more difficult times
to come, and that won't be easy. People
who bought Intel or Oracle at the start of this year probably feel as if it
wasn't that bad a year for tech. Both, despite
a recent sag, still are up almost 40% this year. Those who chose Microsoft or
Dell, however, took a bath: Microsoft
is down 45% since the year began, and Dell is down almost 30%.

Mr. Galvin thinks tech stocks will stage a fourth-quarter rally, as investors
look for companies that can continue to
build profits in a slowing economy. He points out that analysts expect tech
to post 38% earnings growth next year,
only a bit less than this year's 41%. But benefiting from any rally would
require picking the stocks that will have the
good earnings.

Another way of looking at the uncertain future, says Bob Bissell, president
of Wells Capital Management, is that
there could be some unexpected events. Companies whose stock prices have
fallen could be acquired, or forced to
restructure, which could provide a payoff for investors.

"I am thinking of companies like AT&T," he says. "Something has got to give
there. The stock is down to the low
30s," 47% down from its 52-week high of 61. "Something has got to happen. Do
you fragment the company?"

He also points to midcap stocks, another of the year's strongest performers.
"I call the category `the forgotten
prince,' " he says. The S&P Midcap 400 index is doing even better than the
Value Line index, up 22% since the
year began.

Some midcap companies deserve to be forgotten, of course. But the index also
contains some smaller banks that
could be takeover targets, and it has some fast-growing tech companies too.
"It is getting stronger as the
technological revolution moves companies rapidly from smallcap to midcap,"
Mr. Bissell says.

---

Friday's Market Activity

Soaring energy prices knocked market averages sharply lower.

American Express lost $1.50 to $59.31, Chase Manhattan dropped 1.66 to 49,
and General Electric, which has an
exposure to the group through its financial-services operations, gave up 2.13
to 56.69.

The group also suffered from a cooling in takeover speculation. Lehman
Brothers, for example, fell 8 to 142.50,
Goldman Sachs lost 4.25 to 124.75 and Bear Stearns gave up 4.75 to 65.

Higher oil prices helped Exxon Mobil rise 3.60 to 88.88. It reached a 52-week
high, its first since Dec. 9, while
Amerada Hess climbed 4.56 to 73.25, and touched a 52-week high of its own.

Database software company Oracle (Nasdaq) fell 6.63 to 78.31, with 60 million
shares changing hands. Despite
Oracle's announcement of strong quarterly earnings Thursday after the end of
normal trading, some analysts said
they were disappointed with the company's revenue growth.

Siebel Systems (Nasdaq), an Oracle competitor, added 4.19 to 99. However, i2
Technologies fell 3.69 to 172.19,
while Ariba lost 5.13 to 152.44, both on Nasdaq.

Red Hat (Nasdaq) lost 4.06 to 21.19. The Research Triangle Park, N.C.,
developer of open-source software products
posted a narrower-than-expected second-quarter loss, but left some analysts
disappointed.

Avon Products eased 50 cents to 41.19. The New York beauty-products marketing
concern said late Thursday the
Securities and Exchange Commission is investigating a $10 million charge the
company took in 1999 related to the
write-off of computer software.

Adobe Systems (Nasdaq) moved up 7.25 to 132.63. The San Jose, Calif.,
software developer reported fiscal
third-quarter earnings that topped forecasts.

Maytag fell 2.19 to 33.63, after the Newton, Iowa, home-appliance maker
warned about second-half earnings.

Ivax rose 2.38 to 43.63. The Miami pharmaceutical maker received final
approved from the Food and Drug
Administration for its generic equivalent of Bristol-Myers Squibb's cancer
drug Taxol.

Carnival Corp. gained 1.75 to 22.88, while rival Royal Caribbean Cruises
advanced 1.75 to 24.50. The stocks rose
on hopes that the withdrawal from the market of a smaller competitor will
ease excess capacity.

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

Politics & Policy
The Homestretch
By Gerald F. Seib

09/18/2000
The Wall Street Journal
A40
(Copyright (c) 2000, Dow Jones & Company, Inc.)

The Gore and Bush campaigns will argue over which did better in the debate
over debates, but one winner is clear:
PBS news anchor Jim Lehrer. Not only will he moderate all three presidential
debates sponsored by the bipartisan
Commission on Presidential Debates, but, under an agreement completed over
the weekend, he will do so under
rules giving him more flexibility than ever before. He will be free to bore
in on a specific subject and extend
discussion of it, rather than simply move on to other questions as in the
past. Under the debate agreement, the two
candidates will stand behind lecterns at the opening debate Oct. 3, sit
around a table in talk-show fashion on Oct.
11, and debate in a town-hall format on Oct. 17.

In other campaign developments:

-- Housing policy? In the closest thing yet to a campaign debate on housing
issues, the Republican party's Web
site is trying to entice listeners to dial in to radio talk shows and charge
that Democrats are running "The Slumlord
Ticket." Why? On top of a recent controversy over complaints by tenants of a
rental house in Tennessee owned by
Vice President Gore, the Web site touts the story of a similar headache now
faced by running mate Joseph
Lieberman. An immigrant mother was evicted when she was injured and fell
behind in rent payments at a property
owned by the estate of Mr. Lieberman's wealthy late uncle; Mr. Lieberman is
executor of the estate.

-- A fish story: To the list of the perils of holding public office, now add
the danger of flying fish. Just ask Rep. Helen
Chenoweth-Hage, an Idaho Republican, who was pelted with rotting salmon
thrown by a 20-year-old protester at a
hearing on Western wildfires held in Montana over the weekend. The protester
cried out that the conservative
congresswoman is "the greatest threat to the forest" and uncorked the salmon.
She wasn't hurt, but the Associated
Press reports that "the hearing was recessed while she cleaned salmon from
her hair and jacket."

--- Money Watch

Top "double givers" -- donors of soft money to both parties

In millions

DONOR DEMOCRATS REPUBLICANS TOTAL

AT&T $1.1 $1.8 $2.9
Microsoft 0.8 1.0 1.8
Enron 0.4 1.2 1.7
Freddie Mac 0.6 1.0 1.5
Philip Morris 0.2 1.4 1.5
SBC Comm. 0.7 0.5 1.2
America Online 0.6 0.6 1.2

Source: Common Cause

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

GE Tops Fortune's Ranking of the World's Most Admired Companies; Key To
Staying Ahead of the Pack Is Innovation

09/18/2000
Business Wire
(Copyright (c) 2000, Business Wire)

NEW YORK--(BUSINESS WIRE)--Sept. 18, 2000--For the third straight year,
General Electric, on the strength of its
management team and innovative global strategy, is No. 1 on FORTUNE's ranking
of the most admired companies
in the world. FORTUNE's third annual list of Global Most Admired Companies
consists of 379 companies in 27
industries, with 25 selected as "all-stars" for exemplifying leadership on a
global scale. Cisco Systems came in at
No. 2 on the all-star ranking (up from No. 8 in 1999); other repeat
performers in the top ten include Microsoft, whose
battles with government regulators on one flank and perceptions of a
foundering Internet strategy on the other
caused it to slip to No. 3 from No. 2; Intel (No.4); and Wal-Mart Stores,
which moved up to No. 5 from No. 7. The
complete list of FORTUNE's Global Most Admired Companies appears in the
October 2 issue of FORTUNE and is
available at www.fortune.com as of Monday, Sept.18, at 8:30 a.m.

According to Nicholas Stein's article, "The World's Most Admired Companies,"
the schizophrenic market conditions
of the past year offer one reason why the Most Admired list looks so
different this year. As Stein writes: "The
winners are companies that demonstrated a new-economy style growth strategy
while maintaining an old-economy
approach to fiscal responsibility." And, as Vicki Wright, global managing
director of the Hay Group consultancy that
helped produce the list with FORTUNE notes: "There is something new this year
in how we perceive companies. It
is the emphasis on how much companies are capable of looking forward. In a
year when old-economy companies
have not seen their share price perform, those that have managed to weather
both the old- and new-economy
storms will flourish."

Notable changes among this year's Global Most Admired list include Home Depot
leaping from No. 20 to No. 9,
Toyota moving up from No. 16 to No. 10, and Citgroup advancing from No. 25 to
No. 18. Strong demand for Sony's
flat-screen TVs, digital cameras, and PlayStation game consoles helped the
company move up from 14 to 6.
Newcomers to this year's list -- Enron, Nokia, Charles Schwab, UPS, and
Goldman Sachs -- all embody business
strategies that bridge the old and new economic worlds. Companies that lost
their all-star status -- IBM,
Hewlett-Packard, AT&T, Procter & Gamble, DaimlerChrysler -- have been plagued
with difficulties integrating new
business concepts.

Many of the industry categories also experienced significant turnover. Among
airline companies, Singapore Airlines,
which didn't even make last year's list, took the top spot from Southwest.
British Airways, hobbled by internal
conflict and heightened competition, fell from third to seventh. Though Intel
held on to the top ranking in the
computer hardware and software category, Sun Microsystems rode the dot-com
revolution to second place, up from
sixth last year, while Dell, facing a wireless (and PC-less) future, fell
from fifth to eighth. And in the white-hot
network communications and Internet technology sector, all-star newcomer
Nokia edged Cisco Systems for top
billing.

To find out what unique management qualities set these companies apart from
their peers, the Hay Group surveyed
the Most Admired Companies and their less admired peers about the performance
measures they use to chart the
progress of their companies.

According to their findings, Most Admired companies set more challenging
goals, link the compensation of their
executives more closely to the completion of those goals, and are generally
more oriented toward long-term
performance.

To complete the list of the world's most admired companies, FORTUNE consulted
the experts: the business
executives who run companies, and the analysts who study them. Global
companies were rated according to eight
criteria: quality of management; quality of products or services;
innovativeness; long-term investment value; financial
soundness; ability to attract, develop and retain talent; community
responsibility; and use of corporate assets. To
reflect this list's international scope, a ninth category was added: global
business acumen. A company's overall
ranking is the average of the scores of all nine attributes. Companies are
ranked within their industry, and the top 25
-- the All-Stars -- are culled from across all industry groups.

The October 2 issue is available on newsstands beginning September 25. For
more information, or to schedule an
interview with a FORTUNE writer or editor, contact Nyssa Tussing at
212/522-6724.
The 2000 FORTUNE Global Most Admired All-Stars

2000/1999 Company Industry
Rank

1/1 General Electric Electronics, electrical equipment
2/8 Cisco Systems Network Commun., Internet Tech.
3/2 Microsoft Computer hardware, software
4/4 Intel Computer hardware, software
5/7 Wal-Mart Stores Retail: general, specialty
6/14 Sony Electronics, electrical equipment
7/9 Dell Computer Computer hardware, software
8/NR Nokia Network Commun., Internet Tech
9/20 Home Depot Retail: general, specialty
10/16 Toyota Motor Motor vehicles
11/22 Southwest Airlines Airlines
12/11 Lucent Technologies Network Commun., Internet Tech.
13/NR Goldman Sachs Securities, diversified financials
14/5 Berkshire Hathaway Insurance: property, casualty
15/3 Coca-Cola Beverages
16/NR Charles Schwab Securities, diversified financials
17/17 Johnson & Johnson Pharmaceuticals
18/25 Citigroup Securities, diversified financials
19/15 Ford Motor Motor vehicles
20/13 Pfizer Pharmaceuticals
21/10 Merck Pharmaceuticals
22/21 Walt Disney Entertainment
23/19 American Express Securities, diversified financials
24/NR United Parcel Service Mail, pkg., freight delivery
25/NR Enron Energy transmission providers

NR = not ranked in 1999

CONTACT: FORTUNE, New York Nyssa Tussing, 212/522-6724

08:33 EDT SEPTEMBER 18, 2000

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


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===============================================================
SCIENTECH IssueAlert, December 7, 2000
Natural-gas Prices Hit Astonishing Highs; Will Coal and Nuclear Benefit?
By: Will McNamara, Director, Electric Industry Analysis
===============================================================

According to a Dec. 5 report in the Wall Street Journal, natural-gas prices,
which already had been rising all year, shot up 11.4 percent to an all-time
high of $20 per million BTUs on Monday at the New York Mercantile Exchange.
Today, reports are circulating that spot prices at the Southern California
border reached an astounding $41 on Wednesday, breaking the Daily Gas Price
Index's all-time record high of $39. The sharp increases are viewed as
a reaction to cold weather in the Northeast and forecasts of more to come.
Projections continue to indicate that natural-gas customers will see sharp
increases in their heating bills very soon. The current increase has resulted
from a volatile mixture of rising demand and decreased supplies for natural
gas, which has driven up prices by a total of 218.9 percent, or more than
$5, since a year ago. The uncertain future of natural-gas supplies may
be a contributing factor to an unexpected resurgence of interest in coal-fired
and nuclear power.

ANALYSIS: Unfortunately, we are starting to see real evidence of the projected
rise in natural-gas prices, just as temperatures start to take their downward
slope across most of the United States. Two months ago, the Department
of Energy predicted that households using natural gas would see the largest
year-on-year percentage increase in their bills, with prices rising about
40 percent on average. We've actually been seeing the price increase since
June of this year, when natural-gas hit a then-unprecedented mark of $4.686
per million BTUs. At that time, it was a shock to see those kinds of spikes
for natural gas, especially since the energy source is typically used mostly
in the wintertime for heating. Yet, now as we move into the coldest months
of the season, I project that the all-time-highs of $20 to $40 per million
BTUs are something that might become all too common for the near term.

The Wall Street Journal article on the price spikes also reported that
the American Gas Association estimated that, as of Nov. 24, there were
about 2.502 trillion cubic feet of gas in storage. This represented an
11-percent decrease from the five-year average for that date. The United
States is mostly self-reliant when it comes to natural-gas supplies and,
as I've discussed in previous columns, the fact that a reported 60 percent
of federal lands has been placed off limits for natural-gas drilling certainly
adds to the concern about future supplies. The Clinton administration and
environmental groups have been fiercely protective of federal reserve lands
and prohibited drilling for natural gas (or oil) in states like Alaska,
where some 36 trillion cubic feet of gas is known to be locked underground.

Yet, at the same time, substitute forms of power generation, such as coal
and nuclear, have been restricted or downgraded in favor of natural gas,
which has only exacerbated the current demand on supply. EPA standards
have become so pro-natural gas over the last decade that few coal-fired
plants have been built in the last 10-20 years. Certainly, the public
resistance
toward nuclear power has been well documented, which has thwarted any planned
production of a new nuclear plant.

Ironically, it seems to me that we now find ourselves at a crossroads in
this industry that may in fact lead to a resurgence of coal-fired and nuclear
power. Especially in states such as Texas and Oklahoma, which are very
reliant on natural-gas supplies, the current uncertainty about the
availability
of natural gas and reasonable prices poses a major dilemma. Despite the
recent trend of moving away from these two forms of power, I can point
to several developments indicating that the current predicament could create
a forced reliance on these power substitutes.

First, let's look at coal. It's been widely postulated that coal is cheaper
and easier to produce than natural gas, and its supplies are certainly
more abundant. As recently as this year, coal has accounted for about 54
percent of the electricity produced in the United States, although that
majority-hold over power production has come under attack. Emission
requirements
have forced many generators to shut down or minimize the use of their
coal-fired
generating stations. In fact, a group of seven utilities*AEP, Cinergy,
Illinois Power, Southern Indiana Gas & Electric, Southern Company, and
Tampa Electric Company*have been hit with a lawsuit by the EPA, claiming
that they contributed to some of the most severe environmental problems
facing certain parts of the United States. Specifically, the EPA has claimed
that the utilities violated the Clean Air Act with emissions from their
coal-fired power plants.

Currently, while natural-gas prices have soared, coal prices have remained
comparatively low and stable. In addition, clean coal technologies are
being put into place to reduce the amount of particulates released from
coal-fired plants. As a result, many generating companies are hedging their
bets that the rise in natural gas prices will continue by maintaining or
increasing their coal-fired generation. For example, AEP is the nation's
leading consumer of coal. Reportedly, about 67 percent of AEP's electric
generation is made at coal-fired plants. In response to the natural-gas
price spikes, AEP confirmed that it will continue to operate all of its
coal-fired plants at full capacity, despite the ongoing lawsuit from the
EPA.

Proponents of coal are using the so-called "natural gas crisis" as an
opportunity
to argue that electricity from coal can be provided at about half the cost
of other fossil fuels and is less costly and more reliable than intermittent
power sources such as wind and solar. In addition, coal proponents say
that the cost of electricity would double if the United States were to
replace all existing coal-generated power plants with alternative forms
of power.

Nuclear power also could stand to benefit from the comprised supplies and
high prices of natural gas. Following the growing interest among several
European and Asian countries, several U.S. utilities have expressed recent
interest in expanding their nuclear assets. Corbin McNeill, co-head of
Exelon Corp., on Monday stated that new nuclear plants are needed and one
will definitely be built in the next five to 10 years. McNeill also noted
that the question of whether a new nuclear plant was built would depend
on a sustained increase in prices for natural gas, which remains the current
fuel of choice for new power plants. However, he rejected the notion that
building new nuclear plants would require the Energy Department's Yucca
Mountain spent fuel repository to be operational, an event that probably
won't happen until 2010.

Entergy is another example of a company that continues to aggressively
pursue nuclear power and may spark other companies to do the same in response
to high natural-gas prices. In late November, Entergy announced that it
would submit a counteroffer for the Vermont Yankee nuclear plant, which
is already in the midst of being sold to rival buyer AmerGen Energy (the
joint venture between Exelon and British Energy). Entergy, which has been
developing a strong nuclear platform for some time, believes that the
Northeastern
United States offers a strong market potential for nuclear power, and plans
to increase its offer for the Yankee plant and trump AmerGen's standing
offer of $93.8 million.

The next few months, especially as temperatures continue to drop, should
be very telling on two counts. First, will we continue to see the
record-breaking
prices for natural gas? (I say yes). Second, what impact will these price
spikes have on coal and nuclear? I think they should only have a positive
impact on future development of these two forms of power. However, the
question is whether or not new production of coal and nuclear can be put
into place fast enough to minimize the potentially disastrous impact from
the low supplies and resultant rising prices of natural gas. Only time
will have the answer to these questions.
===============================================================
SCIENTECH is pleased to provide you with your free, daily IssueAlert. Let
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---------------------- Forwarded by Richard Shapiro/HOU/EES on 08/03/2000
07:35 AM ---------------------------

	Joseph Alamo
	08/02/2000 07:51 PM

To: California Government Affairs, Paul Kaufman/PDX/ECT@ECT, James D
Steffes/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, Joe
Hartsoe/Corp/Enron@ENRON, Mary Hain/HOU/ECT@ECT, Cynthia
Sandherr/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Karen
Denne/Corp/Enron@ENRON, Peggy Mahoney/HOU/EES@EES, Harry
Kingerski/HOU/EES@EES, David Parquet/SF/ECT@ECT, Laird Dyer/SF/ECT@ECT, Roger
Yang/SFO/EES@EES, Dennis Benevides/HOU/EES@EES, Michael McDonald/HOU/ECT@ECT,
Robert Badeer/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT
cc:
Subject: Report on Calif. Electricity Price Spikes by CPUC and EOB

For your review:


The total mark to market value for US Gas EOL deals as of 08/31/2000 was:

   $332,200,027

Physical deals totalled $(5,441,280).  Financial deals totalled $337,641,307.

Let me know if you have any questions.

Thanks,

Errol, X5-8274


FERC issued a letter to the Northeast State Commissioners  requesting their views on several questions before the Commission on RTO  formation.  FERC presented 11 questions for the Northeast states to address  and respond back by January 18, 2002.  FERC will also initiate in  mid-January a conference call with the state commissions to  discuss what will be in the written comments.

From the questions posed, it is appears that FERC has not  decided some very critical questions about RTOs in the Northeast, i.e. scope and  configuration, market interface, role of reliability, and market  monitoring.  FERC is honoring the commitment it made in its November order  vowing to work with the state commissions and incorporate their concerns and  views.

Attached is the letter.

RT01-2-01

Tonja Wicks
Manager, Energy Supply Policy
Alliance of  Energy Suppliers
Edison Electric Institute
Phone: (202) 508-5098
Fax:  (202) 508-5600
Fax: (202) 508-5445
 - RTO-NE-website-letter.pdf
 - Tonja Wicks.vcf


QUENET, JOSEPH A,
?
You have been selected to participate in the Mid Year 2001 Performance
Management process.  Your feedback plays an important role in the process,
and your participation is critical to the success of Enron's Performance
Management goals.
?
To complete a request for feedback, access PEP at http://pep.enron.com and
select Complete Feedback from the Main Menu.  You may begin providing
feedback immediately and are requested to have all feedback forms completed
by Friday, May 25, 2001.
?
If you have any questions regarding PEP or your responsibility in the
process, please contact the PEP Help Desk at:
Houston:  1.713.853.4777, Option 4 or email: perfmgmt@enron.com
London:  44.207.783.4040, Option 4 or email: pep.enquiries@enron.com
?
Thank you for your participation in this important process.
?
The following is a CUMULATIVE list of employee feedback requests with a
status of "OPEN."  Once you have submitted or declined an employee's request
for feedback, their name will no longer appear on this list.  NOTE: YOU WILL
RECEIVE THIS MESSAGE EACH TIME YOU ARE SELECTED AS A REVIEWER.
?
Employee Name:
MISRA, NARSIMHA


-----Original Message-----
From: 	Otto, Randy
Sent:	Tuesday, November 27, 2001 12:40 PM
To:	Nemec, Gerald
Cc:	Johnston, Greg; Le Dain, Eric; Sangwine, Howard
Subject:	Credit Worksheet - ENA/Canadian Natural Resources Ltd.

Please find attached a credit worksheet for the above noted counterparties:

Randy Otto
Senior Credit Analyst

Enron Canada Corp.
3500 Canterra Tower
400 - 3rd Avenue S.W.
Calgary, Alberta
T2P 4H2

403-974-6716 (ph)
403-974-6706 (fax)


Tom Martin

Elizabeth Boudreaux
04/25/2000 01:53 PM
To: Eric Bass/HOU/ECT@ECT, Ismael
Petrozzi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kenneth Chow/ET&S/Enron@Enron,
Ashley Dietz/Enron Communications@Enron Communications, Jerven
Zhang/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gerardo
Benitez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jennifer Koop/FRA/ECT@ECT, Zac
McCarroll/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Victor
Ong/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael Simmons/HOU/ECT@ECT
cc:
Subject: Manager's Name

Good afternoon!

Please let me know your manager's name.  We are gathering information for the
PRC process in June.

Thank you!
Elizabeth
3-6176


Michelle,
I agree with you that we need to run AT LEAST 500 iterations.  But I did not
realize that it took 16 hours to run 100 iterations. Helen and I talked
earlier about
using parallel computing technique to split the algorithm into smaller parts
and
run the parts separately on different processors, then aggregate the results.
This procedure makes better use of computer power and saves time. Looks like
we have to do it this way now.  Buying a more powerful computer helps but
does not solve the problem.

In addition, we might want to re-consider if writing the code in VB is
optimal.
I was assured at the very beginning that VB runs as fast (if not faster) as C,
but some re-assurance from IT group on this issue is helpful.

Best,
Alex

	From:  Michelle D Cisneros @ ECT                           04/09/2001 02:52 PM

To: Alex Huang/Corp/Enron@ENRON
cc: Gary Hickerson, Danielle Romain

Subject: Generation Earnings Model

Hi Alex-

Danielle and I were talking to David M. today regarding running the model for
purposes of back testing the results. Last week we ran Calpine using 46 days
of historical forward price data at 10 and 100 iterations. The 100 iteration
run took 16 hours to run. To run all 20 companies with the 46 days worth of
data and at 100 iterations is estimated to take about 28 days. We are
concerned that 100 iterations will not be sufficient and will need to be
increased to at least 500 iterations.

We are thinking that we need to use a server or something much more powerful
than the test computer we have been using. Do you have any suggestions as to
how we can improve the process?

Thanks,
Michelle
X35435

Hi Alex-

Danielle and I were talking to David M. today regarding running the model for
purposes of back testing the results. Last week we ran Calpine using 46 days
of historical forward price data at 10 and 100 iterations. The 100 iteration
run took 16 hours to run. To run all 20 companies with the 46 days worth of
data and at 100 iterations is estimated to take about 28 days. We are
concerned that 100 iterations will not be sufficient and will need to be
increased to at least 500 iterations.

We are thinking that we need to use a server or something much more powerful
than the test computer we have been using. Do you have any suggestions as to
how we can improve the process?

Thanks,
Michelle
X35435


As a reminder, the time for the conference call scheduled for this coming
Monday is 11:15am (CST).  The subjects to be discussed will be updates,
budget, RCR and invoices.  The dial-in number is:  888/311-9051, and the pass
code is 60396.

Carmen Perez
International Government Affairs
713/345-4952


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I have cleared my calendar, so any time in the morning works for me.

Best,
Jeff

	Janel Guerrero
	04/27/2001 04:30 PM

		 To: Jeff Dasovich/NA/Enron@Enron, Michael Tribolet/ENRON@enronXgate
		 cc:
		 Subject: Tuesday meeting with Steve Kean

Jeff/Michael,

In preparation of Ken Lay's tour through California next week, Steve Kean
would like to meet with the two of you (in Houston) on Tuesday morning.
Steve's morning is wide open, so please give me a time (one hour) that works
with your schedules.

Please cc Maureen McVicker .  Thanks!


I don't thank that is a problem so long as the bank permits it - I know we
have sold bank accounts in the past, although I don't know that I have ever
documented it - do you need us to try to put together the documentation or
is that something you guys can do?

**********NOTE**********
The information contained in this email message is intended only
for use of the individual or entity named above.  If the reader
of this message is not the intended recipient, or the employee or
agent responsible to deliver it to the intended recipient, you
are hereby notified that any dissemination, distribution or
copying of this communication is strictly prohibited.  If you
have received this communication in error, please immediately
notify us by telephone (214-746-7700), and destroy the original
message. Thank you.


Dear Colleague,
Having invoked the Govt Of India Gaurantee yesterday, this has no doubt
received front page media attention across the country. While we will be
circulating some of this around, I forward this particularly interesting
editorial from The Economic Times.  For those of us who question the state
governments stance refusing to pay and face the frequently encountered charge
of high tariff etc,  here's what the countries most widely read and
influential daily has independantly to say in our support:

THE ECONOMIC TIMES
Wednesday Feb 07 2001, http://www.economictimes.com/today/07edit02.htm

A Deserved Downgrade, ( EDITORIAL)

THE rating assigned to four government of Maharashtra supported bonds has,
rightly, been downgraded by Crisil, following non-payment of dues to the
Dabhol Power Corporation by the state government. Predictably, Maharashtra
finance minister Jayant Patil has objected to the downgrade, but that only
shows how out of touch politicians are with commercial reality. This is a
problem not just in Maharashtra but in all states. Politicians have got used
to the nawabi notion that rulers do not really have to pay their legal dues,
and any payments they actually make are a sort of favour.

Maharashtra was earlier regarded as one of the best state governments. But
now it is in fiscal difficulties, like all others. Mr Patil claims Dabhol is
a special case, reflecting not fiscal distress but a political decision not
to pay. Sorry, Mr Patil, but any entity that believes it can default on
payment for political reasons deserves to be punished since it is
demonstrably unreliable. Many believe the Dabhol deal was a high-cost one. So
what? Dozens of public sector projects have suffered cost overruns, but that
is no reason for refusing to pay their dues. The whole point of commercial
rules is that you must abide by the rules of the game even when they involve
a loss. You can legitimately withhold payment only if the original deal was
crooked and broke the law.

This was the accusation made against Dabhol in the mid 1990s, but detailed
investigation failed to unearth evidence of wrong-doing, and dozens of legal
petitions were dismissed by the courts. Cynics say that lack of evidence in
India does not mean innocence. But that cynicism can apply to every single
power project in India, including public sector projects. In life, we all
make some good deals and some bad ones, and need to abide by them
nevertheless. State governments cannot escape this commercial rule. No state
should renege on a deal merely because it was a bad one. If it does so, it
deserves to be downgraded as an unreliable and risky economic partner. The
Crisil downgrade may not mean much of a rise in the state,s immediate
borrowing costs. But it will affect the state,s once-awesome reputation, and
that could be a far higher real cost.