YES

 -----Original Message-----
From: 	Cappelletto, Nella
Sent:	Thursday, October 04, 2001 10:03 AM
To:	Zufferli, John; Lambie, Chris
Cc:	Milnthorp, Rob
Subject:	MEETING WITH ROB MILNTHORP - Wholesale Offer to Retail
Importance:	High

John and Chris, Rob would like to meet with you both to further discuss the issues relating to ECC's wholesale offer to Enron Direct.  I have scheduled this meeting on Tuesday, October 9th at 2:00 pm in Rob's office.  Does this date and time work for you both?

Regards, Nella

 -----Original Message-----
From: 	Milnthorp, Rob
Sent:	Wednesday, October 03, 2001 10:11 AM
To:	Zufferli, John; Lambie, Chris
Subject:	Wholesale Offer to Retail

Guys - I understand that you met with Cross et al to discuss wholesale offers to retail. My original position on the matter has not changed. That is, the wholesale desks need to show a wholesale offer to retail. In other words, the offer shown to our retail affiliate, at a minimum, should equal the offer that would be shown in our wholesale business (either through EOL, brokers or the offer given to originators for wholesale customer deals).

There has been a great deal of discussion with respect to the margins retail is adding to the wholesale offer. From a wholesale perspective, this is irrelevant. The retail business requires large margins due to its nature - small vol, high credit, commission, call centre, invoicing, etc.

The retail margin only becomes relevant if prices need to be tighter. In those particular cases, both parties need to work together to make sure that our price is ultimately competitive. This may involve one or both parties reducing their imbedded margins and/or offer.

I am looking to the two of you to help build the retail business. Your leadership and assistance are crititcal to the success of the retail initiative. Without your cooperation, the business is dead. You are both in a position of power to make or break the retail business in Canada. It is very clear that EES Houston is relying heavily on Lavo and his folks to push forward the retail business in the US - it seems to be working. We need to ensure that we are doing the same. I can guarantee you that your efforts will not go unnoticed.

I understand that sharing the margin was discussed as an option. This option will not work. From an external perspective, it is imperative that Enron demonstrate its retail capabilities as well as retail earnings. If a portion of retail margin remains in wholesale, it does nothing for expanding the stock multiple. I am convinced that the key lever to expanding our stock multiple lies with retail and therefore retail earnings.

If you have any questions or concerns, I would be happy to discuss this further - at the end of the day, it is imperative that we are all on the same page.

Regards
Rob


I have delivered  my request for withdrawal to the 16th Floor receptionist (which I believe is Zulie's desk) for delivery to Pam, but the instructions appear to say that Renee is to get the request form....if Renee is the required recipient, please make sure that it is delivered to her.   I would hope that under the circumstances the  Plan Committee would authorize these transfers without delay so that the requested wire transfers can be made today.

Sincerely
Barbara Gray


Thanks.

	Debra Perlingiere 05/21/2001 10:41 AM 	   To: Gerald Nemec/HOU/ECT@ECT  cc:   Subject: Wellstar

Theresa has changed the price to  "less $.70"  and suggested I insert  meter numbers rather than well names.    Pending further changes I will send to Wellstar.

dp

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


Aimee-

Gas control has some line work scheduled for 1/4,5,6 that will affect the
referenced point.  Dynegy has nom'd 1800 at this point which I'm assuming
they'll want baseload for January.  The desk also appears to have some gas
nom'd out here (approx 1200mm).   Rather than cut these volumes, would you
try to negotiate with Koch not to flow this gas during the outage, but to
make it up as soon as the outage is over (they may be able to begin flow on
1/6)?  Please let me know as soon as possible.

Thanks.


Dear Board Members,

For those of you unable to travel to the meeting set for June 7 beginning at
1 p.m. central, conference calling has been set up.    The dial in number for
the Board meeting on June 7 is 773-756-4702, pass code GISB and conference
leader McQuade.  For those of you able to arrive at the hotel in time for
lunch, a plated lunch has been set up in the Pecos Room of the Houston
Airport Marriott beginning at 11:30 a.m.

Best Regards,  GISB Office

The GISB organization follows a privacy policy, which does not permit
distribution of contact information. As such, all email addresses are denoted
blind in correspondence.  Upon receipt of notice, the GISB office will modify
the distribution to no longer carry your address.  If you would like to add
other participants from your organization to this distribution list, please
also email such request to the GISB office.


Dear Turbine Torture Club Members:

The purpose of this email is to confirm that we will have a conference call
this Wednesday, November 29 at 130 CT.  The following items have been
suggested for the agenda:

Form of consent to assignment agreement (draft circulated) - to be used for
LM's and Frames, if possible.
Assignment language - new language being tortured within the Enron ranks, to
GE soon.
Limit of liability, indemnity, etc. - Enron owes GE a position on this.

In addition, it seems to me that the following equipment will be "moving"
soon:

City of Austin LM's (to be assigned to ENA, then NEPCO)
LM's for the ESA project
PSCO, LV CoGen, the remaining LM's, Pastoria, Blue Dog (all to DevCo, right?)

I suggest that we address any commercial, financial or legal issues
outstanding concerning the assignment of these turbines.

There may be others who need to be involved in the call, and there may be
additional issues.  Please advise.

Thanks,

Kay


britt,

thanks your notes below.

re bug issue - noted. just one question; do you think we should notify our
suppliers in view that, if there is a problem as a result of the bugs, we
will have to proceed against them??? they would want to have a rep to view
the testing as well, i would think.

re joint testing - pls copy eric tan on what needs to be done once a decision
is made on where/when the testing will be done.

re freight payment - before offering to just pay the $500,000, do you think
we should propose it be paid to an interest bearing escrow account pending
the results of the joint testing (or whatever other "pending" limitation you
think might help us)??

rgds

From: Britt Davis@ENRON on 09/11/2000 07:26 PST
To: Paul Henking/SIN/ECT@ECT
cc: Alan Aronowitz/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Michael A
Robison/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, James P
Studdert/HOU/ECT@ECT
Subject: Re: In re M/V PACIFIC VIRGO

Paul,

Thanks for your e-mail.  Parenthetically, I'd be happy to explain how we got
to where we are on our strategy; maybe a telephone call would be best.  Let
me know when you are available.  I can call you early a.m. or late p.m.

Re the bug issue:  we were aware of this, although I am interested to hear
that SGS raised it with you and Eric in mid-October.  I have discussed this
in the past with David Best, and spoke with him on the telephone this morning
about what SGS told you.  We don't think we should put anyone on notice about
the bug issue unless and until it appears and is confirmed at the joint
testing.  Otherwise, we may be raising an inherent vice argument for both
Mitsubishi and our own cargo underwriters.   Let me know if you have a
different view (on this or anything else I put in this e-mail).

Re Mitsubishi's response to our settlement demand:  David Best has just
spoken with Sian Heard, Mitsubishi's lead London solicitor.  It is clear from
her that Mitsubishi will not be settling prior to instituting arbitration.
It is also clear that Mitsubishi will not consider any substantial settlement
without Heard's advice.  Best believes that Heard will recommend that the
joint testing take place before giving Mitsubishi an exposure evaluation.  In
sum, while our attempt at settlement prior to joint testing was a worthwhile
effort, to avoid the risk and expense of the problematic joint survey, it now
appears to David and me to be at a dead end.

Re the joint testing:  Again, David and I believe that the joint testing
should proceed as quickly as it can be arranged.  Neither our cargo
underwriters nor Mitsubishi will move off dead center unless we do so.  Given
the problems with SGS's lab in Singapore, the "bug" issue that SGS in Subic
Bay has raised (again), and that SGS did the pre-purchase of product for ECT
that proved off-spec, I have asked David to re-visit with Steve Jones, our
chemist, the logistics and cost of having the testing done in the U.K.  I
have also asked him to consider whether Heard might be amenable to splitting
the costs of transporting the samples from Singapore to the U.K.  I would
like to get ECT's authority quickly to authorize the joint testing to go
forward.

Re the selection of arbitrators:  David has discussed three Q.C.s that he and
Neale agreed were appropriate with Hearn.  Of those three, Hearn likes
Nicholas Hamblin, who will charge 275 pounds an hour, and $1,750 pounds per
day.  She will be conferring with Mitsubishi about using him as the sole
arbitrator.  Given that we have initiated a good-faith discussion of the
choice of arbitrators with Mitsubishi, David advises that we do not need to
worry about sending Mitsubishi a letter tomorrow with our choices of
arbitrator on it.  We can wait for Hearn to respond, then I will make a
formal request for your authority to agree to one arbitrator who has already
been accepted by Mitsubishi.

Re the without-prejudice settlement of Mitsubishi's freight and demurrage:  I
read you loud and clear (and thanks for making clear that the freight claim
is only about $500,000, not $760,000, as I had inadvertantly indicated in my
last e-mail).  As I previously mentioned, David and I are on board with this
idea, given the difficult circumstances of this case.

Let me know if I have inadvertantly mischaracterized anything you said.

Britt

	Paul Henking@ECT
	11/09/2000 02:25 AM

		 To: Britt Davis/Corp/Enron@ENRON
		 cc: Alan Aronowitz/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Michael A
Robison/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, James P
Studdert/HOU/ECT@ECT
		 Subject: Re: In re M/V PACIFIC VIRGO

britt,

thanks your reply which is noted. you will notice i have excluded david best
and ngregson (?) preferring to keep my comments in house as privileged info,
unless you feel this msg should be forwarded to them later.

firstly, i am getting nowhere with mitsubishi on the settlement front. i have
gone so far as to mention this morning to mitsuru that if this does goes to
arbitration, and should mitsubishi succeed in their position, this will only
serve to increase our claim by a similar amount since these costs would then
become part of our contamination claim. he seems quite content to let this go
to arbitration. as an example, he was suppose to call me back this afternoon
but did not.

secondly, with regards to your comments, i would just respond/add the
following information:

1. i don't know if i am switching tactics so much as following what should
have been done in the beginning (i.e. submit the claim to our insurance
company and let them proceed against the owners). i honestly feel the
arbitrators will say, "pay the freight (and possibly the demurrage now) and
settle the contamination claim as a separate issue". clearly, the c/p says
that freight is due without deduction once the vessel has completed discharge.

on the issue of the "pre-sale" survey, i have discussed this matter
internally with eric tan. seems our position is that singapore considered the
sample that was drawn as a bad sample as well as we were not sure that the
test methods used conformed with the testing methods required for first gas.
this position is proved by the loading of the pacific virgo when the product
subsequently tested on-spec for first gas. granted, it might still become an
issue but, as you say. it could become an issue in either proceeding.

i am getting a little confused on the matter of the joint testing. verbally i
was advised that enron did not want to have the joint testing - at least not
on a prompt basis. your msg now says that we do want to test the product and
it should be done as soon as possible (as mitsubishi - and your advices that
the underwriters and hear owner's p and i club would want). i assume this
change is the result of the arbitration.

be that as it may, i do have a bit of information that you may, or may not,
be aware of or find relevant. when eric tan and i visited first gas in
mid-oct to meet the personnel at first gas and witness one of the cargoes
being discharged at the plant, we also took the opportunity to meet with sgs
in subic bay to see their facilities and meet their personnel. during the
conversation the subject of the elang cargo came up and the comment from sgs
is that they were fairly certain it was off-spec due to "bugs". this may
sound silly but i have heard of this before and is a problem with petroleum
products.

it seems sgs even went so far as to test the product themselves for these
"bugs" and got a positive result. this test was not requested by enron or
first gas and was done some time later in this process. i understand there
may be some concern on our part over our subsequent sales to third parties if
we knew there were bugs in the product. i would have to say that this was not
known at the time and even today is only conjecture based on sgs' advices
mid-oct (well after these sales). sgs also described "changes" to the product
which would fit with the cargo having bugs (i.e. a strong sulphur smell and
change in colour).

if the testing is now done, i do not know if these bugs will be detected or
not. however, if they are in the ship's samples, they may have changed the
sample sufficiently that even a visual observation may detect the problem.
the next problem becomes proving from where the bugs originated. were they in
the previous cargo tanks that were not cleaned properly? or were they in the
condensate when the cargo was loaded? obviously, testing of the shore sample
prior to loading will determine the answer. if the shore sample is ok, then
they had to come from the ship. if the shore sample also has bugs, then we
should be claiming against our suppliers.

this of course assumes the suggestion put forth by sgs is in fact correct.
just something else to be considered.

2) i am not saying that we pay the full amount immediately but only the
freight portion (about $500,000). we then advise mitsubishi (or their
lawyers) that we will now review the demurrage claim (about $260,000) and
revert by say end nov. the demurrage claim has been sent to our london
office's demurrage department and i have asked them for their comments on the
claim. after all, there may be issues with the ship's pumping performance or
simple laytime errors which may reduce the demurrage claim. they will try to
get me a response before the weekend.

in this manner, we pay part of the money but still have a smaller portion
which we may apply against our claim once the test results are known. i will
leave this to legal as to decide how the approach to mitsubishi or their
lawyers should be made

rgds


To confirm our conversation yesterday,  the referenced counterparty can only
purchase power in the east.


S&P Lowers Enron Credit Linked Notes Trust Ratings; On Watch Neg
PR Newswire, 11/07/01

DJ CNBC's FABER REPORT: Enron/Dynegy Deal Talk
Dow Jones, 11/07/01

Enron in Talks With Dynegy That May Include Merger, CNBC Says
Bloomberg, 11/07/01

WSJ: Dynegy In Talks To Put About $2B Into Enron Now
Dow Jones News Service, 11/07/01
Enron Shares Fall on Concern About Finding Investors (Update2)
Bloomberg, 11/07/01

Enron Credit-Linked Note Ratings Reduced 6 Days Late (Update2)
Bloomberg, 11/07/01

Former SEC Chairman Levitt (Transcript of Interview)
Bloomberg, 11/07/01

USA: U.S. FERC watching Enron's impact on energy markets.
Reuters English News Service, 11/07/01
Apache Unwinds Most Gas Hedges; Cites Enron Uncertainty
Dow Jones News Service, 11/07/01
USA: Enron shares fall below $8 - set new nine-year low.
Reuters English News Service, 11/07/01
Enron's stock drops 25 percent
Associated Press Newswires, 11/07/01
Rabin & Peckel LLP Commences Class Action Against Enron Corporation and Certain of Its Officers and Directors, Alleging Violations of Federal Securities Laws
Business Wire, 11/07/01

Enron's power company in India calls off Singapore meeting after Indian lenders file lawsuit
Associated Press Newswires, 11/07/01
USA: El Paso says it does not expect Enron bankruptcy.
Reuters English News Service, 11/07/01

Energy traders are icing out Enron
Shares trade at 9-year lows for 2nd straight day
CBS.MarketWatch.com, 11/07/01

Legal Group Plans Suit to Void California Power Contracts
Bloomberg, 11/07/01

S&P Lowers Enron Credit Linked Notes Trust Ratings; On Watch Neg

11/07/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

NEW YORK, Nov. 7 /PRNewswire/ -- Standard & Poor's today lowered its ratings on Enron Credit Linked Notes Trusts' credit linked notes and placed them on CreditWatch with negative implications (see list).
The lowered ratings reflect the Nov. 1, 2001 rating action taken on Enron Corp., which was based on Standard & Poor's belief that Enron's plan to employ asset sales and other means to repair its damaged balance sheet will be insufficient to restore its long-term credit quality to the historical triple-'B'-plus level. The CreditWatch placements recognize the uncertainties that surround the company and its credit quality in the short run due to the possibility of further unanticipated developments in the capital markets.
These synthetic issues utilize a credit default swap that references Enron's senior unsecured debt and therefore the rating on the credit-linked notes will reflect the current senior unsecured rating of Enron. OUTSTANDING RATINGS LOWERED AND PLACED ON CREDITWATCH NEGATIVE
Enron Credit Linked Notes Trust
US$500 million credit linked notes
Rating
To From
Notes BBB/Watch Neg BBB+
Enron Credit Linked Notes Trust II
US$500 million credit linked notes
Rating
To From
Notes BBB/Watch Neg BBB+
Enron Euro Credit Linked Notes Trust
EUR200 million credit linked notes
Rating
To From
Notes BBB/Watch Neg BBB+
Enron Sterling Credit Linked Notes Trust
GBP125 million credit linked notes
Rating
To From
Notes BBB/Watch Neg BBB+

/CONTACT: Mary Ryan, New York, +1-212-438-2090, or Frank J. Trick, New York, +1-212-438-1108, both for Standard & Poor's/ 11:47 EST
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

DJ CNBC's FABER REPORT: Enron/Dynegy Deal Talk
2001-11-07 14:56 (New York)

  The following is a transcript of a report aired Wednesday by CNBC reporter
David Faber:

  Enron is in discussions with Dynegy about a range of options that include a
merger of the two companies.

  While such an outcome is only one of a number of options being discussed,
sources close to the talks tell me such an outcome is being considered.
  Enron is trying to raise equity capital and restore confidence amid the
complete collapse of its stock price.

  Today, the Houston-based energy trading concern's shares have fallen another
25%, while its bonds, perhaps a better barometer of the market's concerns about
credit quality, have shed roughly ten points.

  Enron will not comment. But sources close to the situation tell me the
company continues to speak with a handful of private equity firms about an
investment. Those talks are still in the early stages.
  Talks with Dynegy, a cross-town rival of Enron's that also markets and trades
energy, have progressed at a faster pace.

  Dynegy is unlike Enron in that it owns more hard assets, many of which came
along with the acquisition of Illnova, completed in 2000.
  While many potential acquirers have shied away from Enron due to continued
concern about unknown liabilities the company may have, Dynegy is very familiar
with its energy trading business.

  Dynegy is the number two player in the U.S. energy trading market and would
clearly become the dominant player were it to merge with or acquire Enron. A
Dynegy spokesman declined comment.

  While Dynegy has off-balance sheet financings that are similar to Enron's,
those financings are not guaranteed by the parent.
  It is such guarantees that have concerned Enron investors along with a series
of questionable investments.

  Given the massive decline in Enron's stock price, Dynegy now has a market
value that is twice that of Enron.

  That decline in Enron's stock price would make any equity infusion heavily
dilutive, if private equity firms were to choose to invest in Enron they would
likely do so in the form of a security that converted to equity and paid a
dividend.

  Still, because Enron now has a market value of only $5.3 billion, the roughly
$2 billion it may want represents an enormous percentage of its overall equity
value.

  Hence, discussion with Dynegy may have taken on the form of a merger, rather
than a strategic investment.

Enron in Talks With Dynegy That May Include Merger, CNBC Says
2001-11-07 13:39 (New York)

     Houston, Nov. 7 (Bloomberg) -- Enron Corp. is talking with
rival energy company Dynegy Inc. about a number of options,
including merger, to help it raise equity capital and restore
confidence, financial news network CNBC reported.
     Spokesmen for Dynegy and Enron declined to comment.

WSJ: Dynegy In Talks To Put About $2B Into Enron Now
By Robin Sidel

11/07/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Of The Wall Street Journal

NEW YORK -(Dow Jones)- Dynegy Inc. (DYN) is in advanced discussions to infuse about $2 billion into Enron Corp. (ENE) in a transaction that may lead to a full-blown merger between the two companies, sources familiar with the matter told The Wall Street Journal.
A formal transaction could be unveiled as early as Thursday, these people said. The situation is very fluid and is subject to change, these people noted.
(This report and related background will be available at the Journals' Web site, WSJ.com.)
Enron has been rocked by last month's disclosure of a $1.2 billion reduction in its equity base partly tied to financial dealings with company partnerships headed by Enron's former chief financial officer. Last month, it reported a third-quarter loss of $618 million. The Securities and Exchange Commission has launched a formal investigation into the matter. Last week, Enron secured $1 billion in new credit lines, using gas-pipeline assets as collateral.
Enron needs the infusion in part because its previously announced plans to raise cash through the sale of power assets is going more slowly than expected. Mostly, though, it needs to restore its credibility with Wall Street at a time when its access to the financing markets is drying up.
Enron shares recently traded down $1.57, or 16%, at $8.10. -Robin Sidel; The Wall Street Journal; 212-274-7991

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

Enron Shares Fall on Concern About Finding Investors (Update2)
2001-11-07 14:06 (New York)

Enron Shares Fall on Concern About Finding Investors (Update2)

     (Adds CNBC report on talks with Dynegy in fifth paragraph.)

     Houston, Nov. 7 (Bloomberg) -- Enron Corp.'s shares fell as
much as 28 percent, to their lowest level in more than a decade,
amid reports that the No. 1 energy trader is struggling to find
investors to help it out of a cash crunch.

     Shares of Enron fell $1.17, or 12 percent, to $8.50 in
midafternoon trading. The shares dropped to $7 earlier. At
yesterday's close, they had fallen 88 percent this year.

     Enron will have a hard time raising a large amount of cash in
a short time, said Sean Egan, managing director of Egan-Jones
Rating Co.

     ``It takes time to sell assets, and many shrewd investors
like Goldman Sachs might find it more profitable to just pluck off
key employees rather than invest in Enron,'' Egan said.

     The shares pared some of today's losses after CNBC reported
that Enron is talking with rival Dynegy Inc. about options,
including a merger. Both companies are based in Houston.

     ``We don't comment on market rumors,'' Dynegy spokesman Steve
Stengel said.

     ``Enron does not comment on speculation on mergers and
acquisitions,'' Enron spokesman Mark Palmer said.

     Berkshire Hathaway Inc. Chairman Warren Buffett decided
against investing in Enron because he wasn't willing to sign a
confidentiality agreement that would keep him from trading Enron's
debt, the New York Times reported today, citing an unidentified
person close to the talks.

     Other companies approached by Enron, including Clayton
Dubilier & Rice, the Blackstone Group and Kohlberg Kravis Roberts
& Co. have also shown little interest, the newspaper said.

     The U.S. Securities and Exchange Commission is investigating
Enron partnerships run by the company's former chief financial
officer. The entities bought and sold Enron shares and assets,
with trades costing Enron $35 million and $1.2 billion in lost
shareholder equity. Enron ousted CFO Andrew Fastow last month.

                         Rating Downgraded

     Standard & Poor's today reduced its rating on Enron's credit-
linked notes, just six days after the ratings company downgraded
Enron's senior unsecured bonds. S&P cut four Enron credit-linked
issues valued at about $1.36 billion combined to ``BBB'' from
``BBB+'' and indicated it may lower the grades again.

     Fearing that an Enron collapse might cripple the natural gas-
derivatives market, oil and gas producer Apache Corp. said it
backed out of most of its gas hedges, realizing a $70 million gain
so far.

     ``We have been unwinding our hedge positions because of
uncertainty created by Enron's credit problems,'' Apache spokesman
Bill Mintz said. The company now has only one position with Enron
that it's trying to unwind.

     The Apache news was reported earlier by the Times.

                        `Fragile Business'

     ``Their trading business is a very fragile business,'' Egan
said. ``If partners on either side get concerned, trading volumes
decline, which is what is happening now.''

     Other companies mentioned in reports as possible buyers of
all or part of Enron have denied an interest in the idea. General
Electric Co. Chief Executive Officer Jeffrey Immelt told CNN today
that ``Enron's really not on our list right now.'' BP Plc Chief
Executive John Browne said ``no'' at a press conference in London
yesterday when asked whether the London-based company would be
interested in buying Enron or a stake in the company.

     Among shares of other energy traders, Dynegy fell $1.70 to
$34.30. Mirant Corp. fell 15 cents to $25.40. Williams Cos. fell 4
cents to $28.97.

--Margot Habiby in Houston, (713) 353-4872

Enron Credit-Linked Note Ratings Reduced 6 Days Late (Update2)
2001-11-07 14:46 (New York)

Enron Credit-Linked Note Ratings Reduced 6 Days Late (Update2)

     (Adds background and stock price in fourth through sixth
paragraphs.)

     New York, Nov. 7 (Bloomberg) -- Standard & Poor's Corp.
downgraded notes linked to Enron Corp.'s credit quality to match
the No. 1 energy trader's credit rating six days after the ratings
company reduced its corporate debt ratings.

     S&P said it cut four Enron credit-linked notes, valued at
$1.36 billion, to ``BBB'' from ``BBB+'', and indicated it may
lower the grades again.

     ``This isn't an additional downgrade and should have happened
last week,'' said Todd Shipman, a director at the ratings company
that follows the company. Last week Shipman downgraded Enron's
long-term ratings to ``BBB'' from ``BBB+,'' and left them on watch
for a further downgrade.

     Enron shares today fell as much as 28 percent, to their
lowest level in more than a decade, amid reports that the No. 1
energy trader is struggling to find investors to help it out of a
cash crunch.

     Shares of Enron fell $1.17, or 12 percent, to $8.50 in mid-
afternoon trading. The shares dropped to $7 earlier. At
yesterday's close, they had fallen 88 percent this year.

     The federal Securities and Exchange Commission is
investigating Enron partnerships run by the company's former chief
financial officer, Andrew Fastow, who was ousted last month. The
entities bought and sold Enron shares and assets,
with trades costing Enron $35 million and $1.2 billion in lost
shareholder equity.

                               Notes

     Holders of the credit-linked notes, sold by Enron Euro CLN
Trust, Enron Sterling CLN Trust, and Enron CLN Trust and Trust II,
may have received a higher coupon than an Enron corporate
obligation offers. The notes, which are obligations of the special
purpose entities, are tied to specific credit events, such as a
bankruptcy or Enron's failure to pay on obligations.

     Proceeds from the notes were to be used to acquire the
Trusts' initial investments, and buyers are to be paid interest
from the proceeds of those certain assets, according to an
offering memorandum. The Trusts can invest in securities with
short-term ratings of at least ``A1'' from S&P and ``P1'' from
Moody's Investors Service, as long as they mature before the
maturity dates of the notes.

     There are four notes, each divided into two offerings, some
offered publicly and some privately sold. All the notes are
scheduled to mature in August 2005 or May 2006 and were sold by a
group of banks led by Salomon Smith Barney, a unit of Citigroup.

     In the event of an Enron credit event, Citibank, which acted
as a swap counter-party to the trusts, can take the trusts'
investments in return for Enron debt obligations. The Enron debt
is then liquidated by the trust, with the proceeds paid to the
investors.

     Neither Enron nor Citibank have direct obligations to the
holders of the notes, according to an offering memorandum.

     Enron's credit-linked notes utilize a credit-default swap
that the trusts have with Citibank that references Enron's senior
unsecured debt, so the rating on the credit-linked notes will
reflect the senior unsecured rating, S&P said in a report.

--Liz Goldenberg and Terence Flanagan in the New York

Former SEC Chairman Levitt (Transcript of Interview)
2001-11-07 12:52 (New York)

     ****THE FOLLOWING IS AN UNOFFICIAL TRANSCRIPT.****
BLOOMBERG L.P. DOES NOT GUARANTEE THE ACCURACY OF THIS
TRANSCRIPT.

     New York, Nov. 7 (Bloomberg) -- The following is a
transcript of a Bloomberg interview with Former Securities
and Exchange Commission (SEC) Chairman Arthur Levitt.  The
reporter is Dylan Ratigan.

     RATIGAN:  As you've probably heard, Enron under
investigation by the SEC, the SEC looking into partnerships
run by their former CFO.  If you come into the Bloomberg
with me, I want to show you what it's done to the stock
price here over the course of the past month, month and a
half.  You're talking about a move from a price in the mid
40s, which was not that long ago, mind you, early mid-
October, to a price that is now $9.67 a share.  This has
absolutely decimated the company's stock price.  Arthur
Levitt, the former chairman of the SEC, with us, looking,
first of all, at what's going on with this company.

     But, before I do that, let me say good morning to you.

     LEVITT:  Good morning, Dylan.

     RATIGAN:  Talk to me.

     LEVITT:  You know, there are certain warning signs here
that investors have to be careful of:  related party
transactions.  Anytime you see a related party transaction,
an investor should be very careful.  What they were doing,
was they were simply setting up these partnerships to move
off the balance sheet acquisitions and borrowings that would
really have hurt the balance sheet and I think given
investors a very different picture.

     RATIGAN:  Well, let's just make it real clear to
people, because they can easily get confused.  I'm a
company.

     LEVITT:  Yes.

     RATIGAN:  .and I create - and I'm an executive of that
company, and I create a partnership that has nothing to do
with that company, legally, on paper.

     LEVITT:  But all the risks and rewards still belong to
the parent company.  The affect of this is the subsidiary
borrows the money to make the acquisition from another
partnership set up by the parent. This stays totally off the
balance sheet of the parent company.  Why does this happen?

     RATIGAN:  So, in other words, Company ABC exists, they
set up Subsidiary 123.

     LEVITT:  Yes.

     RATIGAN:  Subsidiary company 123 borrows money from.

     LEVITT:  To make an acquisition.

     RATIGAN:  A bank?

     LEVITT:  No.

     RATIGAN:  They borrow money from who?

     LEVITT:  They issue bonds.

     RATIGAN:  OK.  They borrow money from the world.

     LEVITT:  Yes.

     RATIGAN:  . whoever wants to lend them money.

     LEVITT:  Yes.

     RATIGAN:  . they borrow money, they make an
acquisition.  Now Subsidiary 123 down here has big debts
that don't reflect upstairs on Company ABC?

     LEVITT:  Precisely.

     RATIGAN:  But ABC still gets to use the asset that was
bought by 123?

     LEVITT:  Yes.

     RATIGAN:  OK.

     LEVITT:  Exactly.  Now, how does it happen?  The
accounting firm that handled this transaction, Arthur
Andersen, received $25 million for an audit of the company -
that's a huge amount - and $27 million for consulting
services - another danger sign.  A lot of dough.  Those
consulting services were to validate these transactions; $52
million dollars went to the accountants.  The problem here
is an audit committee was not doing its work.  If you look
at Enron's statements - and how many times have we heard
they were confusing?  It's the job of the auditing firm to
see to it that it is not confusing.  That's the real
problem.  Now, what can you do about it?

     RATIGAN:  Tell me.

     LEVITT:  I think, actually, the FASB, the independent
standards setter, could put through a rule, which says.

     RATIGAN:  And FASB is the Federal Accounting Standards
Board.  They set the rules.

     LEVITT:  Yes.  Located in Norwalk, Connecticut.  They
could say, if a company sets up another legal entity, and
the company retains all the risks and rewards of that
entity, then the public company, that public company that
set up these entities, must consolidate in the P&L, in the
balance sheet, all of these transactions.

     Now, how does that come about?  I think the SEC could
urge the FASB to do this.  In 1990, the present chief
accountant of the SEC called for that action to be taken
place, but at that point, the then-chief accountant didn't
support the move.

     RATIGAN:  And this creates, in your mind, a rallying
call to reiterate that request with more venom and more
passion than before?

     LEVITT:  I don't know about venom, but I.

     RATIGAN:  But with passion.

     LEVITT:  I certainly think that passion - I think this
is clearly a call for better disclosure.

     RATIGAN:  Fair enough.  I will see you next week, OK?

     LEVITT:  Good.  Nice to see you.

     RATIGAN:  You, too.

     ***END OF TRANSCRIPT***

USA: U.S. FERC watching Enron's impact on energy markets.

11/07/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, Nov 7 (Reuters) - The Federal Energy Regulatory Commission is watching what effect Enron Corp.'s financial problems may have on interstate electricity and natural gas markets, FERC chairman Pat Wood said on Wednesday.
However, Wood said FERC does not have a direct role in the ongoing federal investigation of the company.
"We're watching the impact that Enron or any other firm would have on the overall workings of the market, but we're not intervening where other agencies have jurisdiction," Wood told reporters during a briefing after the agency's regular meeting.
Enron, the nation's largest trader of natural gas and electricity, is under attack for failing to explain off-balance sheet transactions that led to a $1.2 billion write-down of shareholder equity.
The deals, conducted with partnerships run by ousted Chief Financial Officer Andrew Fastow, are under investigation by the U.S. Securities and Exchange Commission.

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

Apache Unwinds Most Gas Hedges; Cites Enron Uncertainty
By Christina Cheddar
Of DOW JONES NEWSWIRES

11/07/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- Over the last few days, Apache Corp. (APA) has unwound nearly all of its hedges on natural-gas prices due to concerns about what would happen to the marketplace for energy derivatives if Enron Corp. (ENE) collapsed.
According to Tony Lentini, a spokesman for the Houston natural-gas producer, many of the hedges were established to lock in the value of acquisitions the company made.
Apache unwound all but one hedge, a transaction that involved Enron and other parties, Lentini said.
Apache has a gain of about $70 million from the various transactions, but the company hasn't determined yet how the gain will be accounted for in its financial results, the spokesman said.
Apache has been an outspoken critic of the merchant energy trading because of the company's perception that the system is underregulated and creates excessive energy price volatility.
-Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

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

USA: Enron shares fall below $8 - set new nine-year low.

11/07/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Nov 7 (Reuters) - Shares of Enron Corp. fell in a new round of selling on Wednesday that set new nine-year lows, amid concerns about the energy trading giant's ability to raise cash.
The company's stock slid $1.77, or 18.3 percent, to $7.90 in late morning trading on the New York Stock Exchange, diving below $8 for the first time since February 1992. The shares are down almost 77 percent since the company released its earnings results on Oct. 16, which set off the recent tumble.
The issues that have plagued the Houston-based company over the past three weeks continue to weigh on it, according to Jeff Dietert, an analyst at Simmons and Co.
"It's a bit of a vicious cycle," he said. "The stock price declines, credit concerns go up, counterparties attempt to reduce their exposure and the earnings power of the company deteriorates."
He added that Enron needs to "get all its ducks in a row" so that it can meet with the holders of its stocks and bonds to discuss issues such as the company's capitalization and plans for strengthening its balance sheet.
Enron, the nation's largest trader of natural gas and electricity, is under attack for failing to explain off-balance sheet transactions that led to a $1.2 billion write-down of shareholder equity.
The deals, conducted with partnerships run by ousted Chief Financial Officer Andrew Fastow, are under investigation by the U.S. Securities and Exchange Commission.

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

Enron's stock drops 25 percent

11/07/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

HOUSTON (AP) - Enron Corp.'s stock price continued its free fall Wednesday as shares fell 25 percent to a new 10-year low amid reports the company was having trouble attracting a large investor to allay worries about its financial health and restore confidence.
Shares of the largest U.S. natural gas and power marketer dropped dlrs 2.41 to dlrs 7.26 in midday trading Wednesday on the New York Stock Exchange.
Enron has been rebuffed by more than a dozen buyout firms as well as Warren Buffett's Berkshire Hathaway, The New York Times reported Wednesday, citing a person close to the talks.
Houston-based Enron's stock is off more than 79 percent since Oct. 16, when the company said shareholder equity had been reduced by dlrs 1.2 billion, in part due to partnerships managed by Enron's former chief financial officer, Andrew Fastow.
At the same time, reported a dlrs 618 million third quarter loss last month, dragged down by a one-time charge of dlrs 1.01 billion attributed to various losses. Fastow was ousted a week later.
The company's financial stability was further weakened after the Securities and Exchange Commission began an inquiry, which was upgraded to a formal investigation, of the partnerships and possible conflicts of interest resulting from them.
On Tuesday, Jeff Skilling, Enron's former chief executive officer, testified before the SEC in Washington D.C.
Enron's woes have prompted speculation about a possible takeover of the company. Some of the potential buyers that have been mentioned include General Electric's GE Capital unit and Royal Dutch Shell.
GE Capital has not ruled out an investment, the Times said, citing a source close to the talks.
Enron has cashed in about dlrs 3 billion in revolving credit it has with various banks to shore up investor confidence.
Last week, Enron secured dlrs 1 billion in new financing, using some of its natural gas and pipeline assets as collateral.
Enron officials said Tuesday seeking additional financing is one of the many options the company is exploring to firm up investor and market confidence.
Meanwhile, Standard & Poor's Corp. on Wednesday lowered its ratings on some of Enron's credit linked notes and placed them on CreditWatch. S-and-P said Enron's plan to repair its damaged balance sheet through asset sales and other means will be insufficient.
Moody's Investors Service and Fitch Inc. have also downgraded the company's credit ratings.
Last week, Enron announced it created a special committee headed by University of Texas law school dean William Powers to respond to the SEC investigation. Powers also was elected to Enron's board of directors.

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

Rabin & Peckel LLP Commences Class Action Against Enron Corporation and Certain of Its Officers and Directors, Alleging Violations of Federal Securities Laws

11/07/2001
Business Wire
(Copyright (c) 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--Nov. 7, 2001--A class action complaint has been filed in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased Enron Corporation ("Enron" or the "Company") (NYSE: ENE) common stock between January 18, 2000 and October 17, 2001, inclusive (the "Class Period"). The complaint was brought against defendants Enron, Kenneth Lay, Jeffrey K. Skilling and Andrew Fastow. The case is numbered H-01-3736. The Honorable Melinda Harmon is the Judge presiding over the case.
The Complaint alleges that defendants violated Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 by issuing a series of material misrepresentations to the market between January 18, 2000 and October 17, 2001, thereby artificially inflating the price of Enron common stock. Specifically, the Complaint alleges that Enron issued a series of statements concerning its business, financial results and operations which failed to disclose (i) that the Company's Broadband Services Division was experiencing declining demand for bandwidth and the Company's efforts to create a trading market for bandwidth were not meeting with success as many of the market participants were not creditworthy; (ii) that the Company's operating results were materially overstated as a result of the Company failing to timely write-down the value of its investments with certain limited partnerships which were managed by the Company's chief financial officer; and (iii) that Enron was failing to write-down impaired assets on a timely basis in accordance with Generally Accepted Accounting Principles ("GAAP"). During the Class Period, Enron insiders disposed of over $73 million of their personally-held Enron common stock to unsuspecting investors.
On October 16, 2001, Enron surprised the market by announcing that the Company was taking non-recurring charges of $1.01 billion after-tax, or ($1.11) loss per diluted share, in the third quarter of 2001, the period ending September 30, 2001. Subsequently, Enron revealed that a material portion of the charge was related to the unwinding of investments with certain limited partnerships which were controlled by Enron's chief financial officer and that the Company would be eliminating more than $1 billion in shareholder equity as a result of its unwinding of the investments. When this news hit the market, the price of Enron common stock dropped significantly.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at www.rabinlaw.com.
If you purchased Enron common stock during the Class Period described above, you may, no later than December 21, 2001, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Maurice Pesso and Eric Belfi, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.

CONTACT: Rabin & Peckel LLP Maurice Pesso/Eric Belfi, 800/497-8076 or 212/682-1818 Fax: 212/682-1892 email@rabinlaw.com www.rabinlaw.com
12:41 EST NOVEMBER 7, 2001
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Enron's power company in India calls off Singapore meeting after Indian lenders file lawsuit
By SATISH NANDGAONKAR
Associated Press Writer

11/07/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

BOMBAY, India (AP) - Enron Corp.'s Indian power unit canceled a meeting with four Indian creditors after they filed a lawsuit against the company and three other parties on Wednesday to demand that the energy project resume operations.
The two-day meeting was scheduled to begin in Singapore on Thursday to discuss bids by two Indian companies to acquire a stake in the troubled $2.9 billion Dabhol Power Co.
The lenders - Industrial Bank of India, Industrial Finance Corporation of India, State Bank of India and ICICI - approached the Bombay court to demand that work on the power project in the western Indian state of Maharashtra resume to ensure adequate cash flows to the project and help its promoters pay dues to the four financial institutions.
Dabhol Power Co., the state utility Maharashtra State Electricity Board, the Government of India and the Maharashtra government were the four parties named in the lawsuit.
Indian banks and financial institutions, which have invested more than $1.3 billion in the project, want Dabhol to continue work on the project and the MSEB to buy the power produced.
The two-day meeting in Singapore was scheduled to discuss the bids made by the two Indian companies, Tatas and the Bombay Suburban Electricity Supply, to acquire a stake in DPC. Enron had offered to sell the stake in DPC for $850 million, at a 30 percent discount, while Tatas wanted a 50 percent discount.
On Monday, Enron began its pullout from the Dabhol power project by issuing a notice that it will sell its stake in the project to its sole customer, the Maharashtra State Electricity Board.
The asset transfer notice issued by the Dabhol Power Project to the MSEB comes after a prolonged payment dispute with the electricity board.
The dispute forced the Houston-based company to shut down the Dabhol plant in May.
Fairfield, Conn.-based General Electric Co. and Bechtel Group Inc. of the United States each hold 10 percent stakes each in the company.
Enron has moved a London court for international arbitration, but says it would prefer a negotiated settlement with the federal government and the Maharashtra state government.
The company still prefers a negotiated purchase of the project by the Indian government and Indian term lending bodies that have funded the equity of foreign sponsors.

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

USA: El Paso says it does not expect Enron bankruptcy.

11/07/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, Nov 7 (Reuters) - Energy company El Paso Corp. said on Wednesday it does not expect beleaguered competitor Enron Corp. to file for bankruptcy.
Ralph Eads, who heads El Paso's merchant energy business, which includes electricity and natural gas marketing and trading, told analysts at a meeting in Houston that the prospect of an Enron bankruptcy was "remote".
El Paso has gained some market share from Enron in recent weeks as a result of some companies' reluctance to do business with Enron, Eads said, but he added that El Paso has not scaled back its own business dealings with Enron.
Eads said El Paso does not expect Enron's problems to result in a "domino effect" that could lead to reduced liquidity in U.S. electricity and natural gas markets, a scenario that has been troubling some analysts and investors recently.
El Paso Chief Executive Bill Wise told the meeting, which was broadcast over the Internet, that El Paso might be interested in acquiring some energy assets from Enron but was not interested in acquiring an equity stake in the rival company, which is reported to be seeking an injection of new capital.

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

Energy traders are icing out Enron
Shares trade at 9-year lows for 2nd straight day
By Lisa Sanders,
CBS.MarketWatch.com
Last Update: 1:47 PM ET Nov. 7, 2001

NEW YORK (CBS.MW) -- Amid mounting questions about Enron's liquidity and creditworthiness, players in the energy-trading business have already begun to limit their exposure to the embattled power merchant.

The revelations came Wednesday as Enron's stock (ENE: news, chart, profile) plunged 24 percent following news that Standard & Poor's cut its ratings for the company's credit-linked notes to two notches above junk status.

"Everybody's trying to balance out their exposure to Enron as best they can," said an energy trader who spoke on condition of anonymity. "That means not doing business or minimizing their business with Enron."

1 of 4 energy trades

Traders' attempts to isolate the company underscore concerns about the stability of the overall energy-trading market, in which Enron is involved in 1 out of every 4 trades.

However, some industry watchers are confident that the energy market can survive if Houston-based Enron were to disappear.

"Even though they quote-unquote make the market, the market exists whether Enron is there or not," said Phil Flynn, senior markets analyst at Alaron.com. "Those that think this is the end of energy trading have another thing coming."

Enron, its shares trading at levels not seen since 1992, saw the stock fall $2.27 to $7.40 on in afternoon volume of 58 million.

On Wednesday, Standard & Poor's, which just last week downgraded Enron's corporate credit rating, cut the rating on the credit-linked notes of Enron Credit Linked Notes Trusts to BBB from BBB-plus. S&P also added a "Watch negative" designation, meaning the rating agency is poised to issue further downgrades if warranted.

"The CreditWatch placements recognize the uncertainties that surround the company and its credit quality in the short run due to the possibility of further anticipated developments in the capital markets," the rating agency wrote.

Wednesday's downgrade affects $500 million worth of notes, which are derivatives linked to Enron's senior unsecured debt, now rated BBB.

"The investors are taking the risk of Enron credit" by purchasing the securities from the trusts even though these are not issued by Enron," said Tom Fritz, a Standard & Poor's managing director.

In addition, Standard & Poor's cut to BBB Yosemite Securities Co. Series 2000-A. The obligations use Enron's corporate rating as a backstop.

The counterparty to Yosemite and the credit-linked notes is Citibank, Fritz said. Last week, J.P. Morgan joined with Salomon Smith Barney, which along with Citibank is a unit of Citigroup (C: news, chart, profile), to extend $1 billion in new credit to Enron to help the company's liquidity.

'Not business as usual'

"With these downgrades, it's not business as usual," the energy trader said. "We're already in the process of losing a counterparty that contributed a good deal of liquidity to the energy-trading market."

The trader cited Calpine (CPN: news, chart, profile), Dynegy (DYN: news, chart, profile), and El Paso Energy (EPG: news, chart, profile) as energy traders that have a chance to gain market share, but he conceded that Enron won't be replaced overnight, should it cease to exist.

"Energy trading won't be destroyed at all," the trader said. "It will certainly be diminished but not gone."

What Enron's absence would do is make it more difficult for lesser creditworthy companies to participate in the market. Exchanges such as the New York Mercantile Exchange and the Intercontinental Exchange may gain a higher profile.

Both of them are trying to establish a clearinghouse for the unregulated market for derivative-energy transactions, as the NYMEX already does with futures.

In other news, Enron is preparing to close most of its Asian broadband telecommunications business, part of a global restructuring that comes as the company is seeking a capital infusion of as much as $2 billion to help it through a financial crisis. See previous story.

"Poor demand for broadband is being exacerbated by falling prices, requiring Enron to consider the best options for managing its global broadband business," according to a recent company memo obtained by CBS.MarketWatch.com.

Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com.

Legal Group Plans Suit to Void California Power Contracts
2001-11-07 14:20 (New York)

Legal Group Plans Suit to Void California Power Contracts

     Escondido, California, Nov. 7 (Bloomberg) -- A conservative
legal foundation said it will file a lawsuit tomorrow to void long-
term contracts California signed with power generators, claiming
they put an unfair burden on taxpayers.

     The United States Justice Foundation intends to sue in
Sacramento County Superior Court, said Richard D. Ackerman, lead
counsel on the case for the group. The USJF wants a court to
terminate the long-term power contracts and require money already
paid to the generators to be returned to the state.

     The USJF proposes a class action to represent California
taxpayers and alleges violations of the state's business and open-
meeting laws. Ackerman said his group may need to forge new law to
succeed in the case.

     ``You're gonna have some serious legal battles that may go to
the appeals level in this case,'' Ackerman said.

     California officials last spring signed about $43 billion in
long-term power contracts after two investor-owned utilities
became insolvent. Governor Gray Davis has said the contracts were
needed to bring stability to California's energy market. Since
then, the cost of power has dropped, leaving California with
contracts to buy electricity above spot-market prices.

     Enron Corp., Southern California Edison Company, Pacific Gas
& Electric Company, Green Mountain Energy, San Diego Gas &
Electric Company, Reliant Energy Company, PacifiCorp Power
Marketing, Inc., Alliance Colton LLC, and Calpine Energy Company
have electricity contracts with the state, according to a USJF
press release.

     The USJF said it sent a letter to California officials giving
them notice of its intent to sue. The group, which calls itself
``Your conservative voice in the courts'' on its Web site, is
supported by individual donations, Ackerman said.

--Michael B. Marois in Sacramento (916) 503-1612


Sara / Laurel,

Just following up on the GTA information we will require to install GTA in
your office. I have attached the legal agreement and the surveys for stand
alone users and LAN (multiple) users. Please don't hesitate to call me with
any questions you might have.

(See attached file: GTA_SURVEY2_Stand_Alone.doc)(See attached file:
GTA_SURVEY_Multi_User_Clre_blank.doc)(See attached file: GTA_LEG
AGREEMENT.doc)

 - GTA_SURVEY2_Stand_Alone.doc
 - GTA_SURVEY_Multi_User_Clre_blank.doc
 - GTA_LEG AGREEMENT.doc


FYI
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 11/05/99 02:33
PM ---------------------------

Brent Hendry@ENRON_DEVELOPMENT
11/05/99 01:06 PM
To: Sara Shackleton@ENRON_DEVELOPMENT
cc:
Subject: Duke claim against Enron

FYI
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on
05/11/99 04:06 PM ---------------------------

Don Black
05/11/99 06:42 PM
To: Randy Young/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard B Sanders@ECT,
Greg Whalley@ECT, Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject: Duke claim against Enron

Although no formal notice has been rec'd from Duke, They have informed me
verbally that they do not intend to proceed with any claims against us.  If
you need any details please call me in BA or send me an email with your
contact instructions.  Given the nature of this topic I would prefer to
discuss my thoughts on the subject in person, if necessary.  Thanks for
everyone's help, and I apologise for any inconvenience.


Please approve the following product type in Data Manager after 11:00 A.M.
Attached are the GTC and long description.

CAN Newsprint Phy

CAN Newsprnt Phy 48.8 gm East Canada     Jul01           CAD/Mt

STEPS FOR APPROVAL:

click the  START button
select  PROGRAMS
select  TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
 PROCEED WITH USUAL LOGIN/PASSWORD
click the Enron Online Production Cluster "START" button
select EnronOnLine (this is the EOL Datamanager)
 PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Awaiting Approval" (OR  "Partially Approved")
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up
TO APPROVE:  Right mouse click on "Approved"


Forward Reg Dickson's resume to Ted Bland for consideration for the trading
track program.  He is overqualified and I'm sure too expensive to fill the
scheduling position I have available.  I will work with Cournie Parker to
evaluate the other resumes.

Phillip


Based on the credit aggregation system, EPMI has purchased $3,914 from the pool however we show an invoice due EPMI (from SAP) i/a/o $21,419 resulting in a net payable to EPMI of $17,505 if the numbers are correct.

The SPP policy states that if a cp experiences a debt downgrade or negative watch, a cp must give SPP notice.  We need to give notice of downgrade/neg watch if we haven't done so already.

-----Original Message-----
From: Bradford, William S.
Sent: Tuesday, November 20, 2001 1:31 PM
To: Ngo, Tracy; St. Clair, Carol; Sager, Elizabeth
Subject: FW: NEW SPP Credit Policy !!

FYI.

Tracy - can you figure out our exposure?

Bill

-----Original Message-----
From: Maurer, Luiz
Sent: Tuesday, November 20, 2001 1:17 PM
To: Bradford, William S.
Cc: Nicolay, Christi L.; Carson, Mike; Steffes, James D.; Ibrahim, Amr
Subject: FW: NEW SPP Credit Policy !!

Bill

SPP is proposing a new credit policy which may affect our credit requirements.

I have already informed Mike Carson, who will be analyzing the commercial implications.

In the mean time, to expedite things, I am also sending you the new SPP Credit Policy.

Tks

LM

-----Original Message-----
From: Nicolay, Christi L.
Sent: Saturday, November 17, 2001 7:01 AM
To: Maurer, Luiz
Cc: Steffes, James D.; Ibrahim, Amr
Subject: FW: SPP Credit Policy

Luiz -- (See my other email re: SPP).  I now found the email.  Thanks for handling.  I will be out of the office next week, so call me at home 713-666-0304 if necessary.  THANKS!

-----Original Message-----
From: McCraw, Phil
Sent: Thu 11/15/2001 10:33 AM
To: SPP TRANSMISSION CUSTOMERS
Cc:
Subject: Credit Policy

Southwest Power Pool, Inc. (SPP) continues to make changes to its Credit
Policy to reflect changes in overall market conditions. The current Credit
Policy was posted on our web site on November 14, 2001. It reflects a marked
shift in the way SPP has administered its Credit Policy in the past.

SPP wants all of our customers to be made aware of this change and we want
to give each  a certain period of time to make the necessary adjustments in
any areas that may be necessary. To this end SPP is attaching the new Credit
Policy for your review. We ask that it be directed to the proper person
within your organization to assure that your company is compliant with all
conditions of the Credit Policy. We ask that you also complete the attached
Credit Agreement and return it to SPP as soon as possible.

SPP expects all customers to be compliant with the Credit Policy by December
15, 2001. Please review the Credit Policy and take the necessary steps to be
in compliance by that date so that there are no interruptions of service or
your ability to make future reservations.

If you have any questions concerning the new policy please feel free to
contact me.  I look forward to working with you to make these changes as
smooth as possible.

 <<Form-SPPCreditPolicy2CS111401.doc>>
<<Form-SPPCreditAgreement111201.doc>>

Phil McCraw
Southwest Power Pool
Financial Coordinator
Phone: 501-664-0146X243 or 501-614-3243
Fax: 501-280-9446
Email: pmccraw@spp.org


You should be aware of these data requests
----- Forwarded by Susan J Mara/NA/Enron on 01/16/2001 02:02 PM -----

	"Daniel Douglass" <Douglass@ArterHadden.com>
	01/15/2001 09:31 AM

		 To: <Barbara_Klemstine@apsc.com>, <berry@apx.com>, <dcazalet@apx.com>,
<BillR@calpine.com>, <jackp@calpine.com>, <glwaas@calpx.com>,
<Ken_Czarnecki@calpx.com>, <gavaughn@duke-energy.com>,
<rjhickok@duke-energy.com>, <gtbl@dynegy.com>, <jmpa@dynegy.com>,
<KEWH@dynegy.com>, <jdasovic@enron.com>, <susan_j_mara@enron.com>,
<Tamara_Johnson@enron.com>, <curt.Hatton@gen.pge.com>, <foothill@lmi.net>,
<camiessn@newwestenergy.com>, <jcgardin@newwestenergy.com>,
<jsmollon@newwestenergy.com>, <rsnichol@newwestenergy.com>,
<Curtis_L_Kebler@reliantenergy.com>, <rllamkin@seiworldwide.com>
		 cc:
		 Subject: UCAN Data Requests on Generators

Board members?might be interested in the attached two sets of data  requests
served on Reliant by UCAN.? Also, note that the second set of  questions asks
for information on conversations with management of Duke Energy  (or any of
its affiliates), the Williams Companies, or the Southern companies  regarding
bids into the ISO or PX markets, including ways to shift power volume  into
real time markets or out of market transactions.
?
Dan
Received: from dymwsm07.mailwatch.com by ArterHadden.com; Mon, 15 Jan 2001
01:50:21 -0500
Received: from dymw0104.mailwatch.com (dymw0104.allegro.net [204.253.83.244])
by dymwsm07.mailwatch.com (8.11.0/8.11.0) with SMTP id f0F6oOT22738 for
<douglass@arterhadden.com>; Mon, 15 Jan 2001 01:50:24 -0500
Received: from 204.253.83.72 by dymw0104.mailwatch.com with SMTP (
WorldSecure Server SMTP Relay(WSS) v4.3); Mon, 15 Jan 01 01:50:02 -0500
X-Server-Uuid: d007647a-7e79-11d4-a501-00508bd358de
Received: from imo-r17.mx.aol.com (imo-r17.mx.aol.com [152.163.225.71]) by
dymwsm10.mailwatch.com (8.11.0/8.11.0) with ESMTP id f0F6o0013526; Mon, 15
Jan 2001 01:50:01 -0500
Received: from Julesan@aol.com by imo-r17.mx.aol.com (mail_out_v29.5.) id
s.93.58a0994 (4208); Mon, 15 Jan 2001 01:48:35 -0500 (EST)
From: Julesan@aol.com
Message-ID: <93.58a0994.2793f742@aol.com>
Date: Mon, 15 Jan 2001 01:48:34 EST
Subject: Reliant Data Request No. 1
To: To: chrisw@greenlining.org, bfinkelstein@turn.org, jbushee@sablaw.com,
kmccrea@sablaw.com, rogerberliner@bcjlaw.com, rcsstl@cdmnet.com,
anchau@shellus.com, keith-sappenfield@reliantenergy.com,
jsmollon@newwestenergy.com, napedersen@jonesday.com, athomas@newenergy.com,
fchristi@arterhadden.com, kmcspadd@milbank.com, hchoy@isd.co.la.ca.us,
lgurick@calpx.com, douglass@arterhadden.com, glwaas@calpx.com,
uwua@worker.com, fmo@sdcity.sannet.gov, jleslie@luce.com, Julesan@aol.com,
mshames@ucan.org, kmelville@sempra.com, bill.mccallum@ci.fresno.ca.us,
btenney@landuselaw.com, RonKnecht@aol.com,
furutanj@efawest.navfac.navy.mil,   mdjoseph@adamsbroadwell.com,
theresa_mueller@ci.sf.ca.us, tlong@turn.org,   jjz@cpuc.ca.gov,
joseh@lif.org, jnnc@chevron.com, jlondon@gralegal.com,
imoosen@gralegal.com, phanschen@mofo.com, epoole@adplaw.com,
rschmidt@bartlewells.com, chilen@llgm.com, lys@aelaw.com,
jsqueri@gmssr.com,   jbennett@gmssr.com, bloomje@la.whitecase.com,
pbray@newpower.com,   rick.counihan@greenmountain.com, thoulihan@mdbe.com,
mday@gmssr.com,   jmalkin@orrick.com, edwardoneill@dwt.com, smoss@hooked.net,
mrh2@pge.com,   whe1@pge.com, ssmyers@worldnet.att.net,
pat.williams@dhcmail.com,   wbooth@booth-law.com, jerryl@abag.ca.gov,
mgomez1@bart.gov,   askaff@energy-law-group.com, hf@energy-law-group.com,
PJPowerLaw@aol.com,   psly@ebmud.com, rrcollins@n-h-i.org,
patrickm@crossborderenergy.com,   tomb@crossborderenergy.com,
brbarkovich@earthlink.net,   pjmuller@ricochet.net, pmcdonne@wenet.net,
berry@apx.com,   sberlin@mccarthylaw.com, scottst@mid.org,
jeff@jbsenergy.com,   cmkehrein@ems-ca.com, jweil@aglet.org,
abb@eslawfirm.com,   bpowers@seniors.org, dcarroll@dbsr.com,
dkk@eslawfirm.com,   howens@seniors.org, smutny@iepa.com,
jtachera@energy.state.ca.us,   rpernell@energy.state.ca.us, kmills@cfbf.com,
mpa@aelaw.com,   mhg@hetrading.com, dws@keywaycorp.com, hbd@gweiss.com,
gerhordt.herbert@msdw.com, cread@steptoe.com, jogg@jhenergy.com,
peter_fox-penner@brattle.com, sdefrawi@efaches.navfac.navy.mil,
ad046@detroit.freenet.org, bob_anderson@apses.com, gdreed@sidley.com,
mbrubaker@consultbai.com, georgeperrault@msn.com, foxba@sce.com,
picketse@sce.com, jsilva@edisonenterprises.com, LVanWagenen@sempra.com,
jbarthrop@powersavers.com, foothill@lmi.net, kpoole@adamsbroadwell.com,
fosterbc@sce.com, ktilton@gralegal.com, paul.harris@bridge.com,
oshirock@pacbell.net, natutt@duanemorris.com, j3m9@pge.com,
cafield@pirg.org, luluw@newsdata.com, tom.oneill@abnamro.com, RJP2@pge.com,
ell5@pge.com, jyf1@pge.com, NXK2@pge.com, rrh3@pge.com,
ConsumersFirst@worldnet.att.net, gtbl@dynegy.com, joe.paul@dynegy.com,
honest@compuserve.com, emitchel@angnewspapers.com, rbw@mrwassoc.com,
difellman@energy-law-group.com, dmarcus@slip.net, jeff@hmhresources.com,
ed@apx.com, chrism@mid.org, rmccann@cal.net, blaising@braunlegal.com,
melanie_gillette@rmiinc.com, twetzel@thermoecotek.com,
Slayman@energy.state.ca.us, jdh@eslawfirm.com, lmh@eslawfirm.com,
ddavie@hesinet.com, rliebert@cfbf.com, karen@klindh.com,
cpeyton@sacbee.com,   thaines@smud.org, huse@eesconsulting.com,
mer@cpuc.ca.gov, ang@cpuc.ca.gov,   cmw@cpuc.ca.gov, ctd@cpuc.ca.gov,
dlf@cpuc.ca.gov, fua@cpuc.ca.gov,   jlo@cpuc.ca.gov, kok@cpuc.ca.gov,
kth@cpuc.ca.gov, kim@cpuc.ca.gov,   gig@cpuc.ca.gov, rtf@cpuc.ca.gov,
raw@cpuc.ca.gov, car@cpuc.ca.gov,   ztc@cpuc.ca.gov,
nevillm@hdcdojnet.state.ca.us, dwrlegal1@water.ca.gov,   ath@cpuc.ca.gov,
randy.chinn@senate.ca.gov, rtavares@energy.state.ca.us,
mschwebs@energy.state.ca.us, lss@cpuc.ca.gov, mflorio@turn.org;
MIME-Version: 1.0
X-Mailer: 6.0 sub 171
X-WSS-ID: 167C4210101512-01-03
Content-Type: multipart/mixed;  boundary=part1_93.58a0994.2793f742_boundary

Please find enclosed UCAN and Ratepayers data request directed to Reliant
Energy Services, Reliant Energy and Reliant Energy Power Generation. ?Please
inform me at your first opportunity if we have a discovery dispute, as that
term is defined by ALJ Ruling 164. ?Please feel free to contact me regarding
any questions about this request. ?thank you michael J. Aguirre
 - reliantrequest01.wpd
 - reliantrequest2_1.wpd


FYI
-----Original Message-----
From: Comnes, Alan
Sent: Friday, November 09, 2001 12:26 PM
To: Steffes, James; Novosel, Sarah
Subject: FW: EPSA MBR Paper

FYI
-----Original Message-----
From: Neason, Judy [mailto:Judy.Neason@williams.com]
Sent: Friday, November 09, 2001 9:41 AM
To: 'Erin Perrigo'; fallonr@dsmo.com; mfgildea@duke-energy.com; Steve.Huntoon@dynegy.com; acomnes@enron.com; dennis.capella@exeloncorp.com; jeffrey.roark@mirant.com; jack.hawks@neg.pge.com; jadillon@pplweb.com
Cc: Julie Simon; Sheridan, Amy; Goldberg, Alex; Thuston, Tim
Subject: RE: EPSA MBR Paper

        Erin,
        Thanks for the advance copy of the paper.  While there are a number of very good points made in the paper, Williams has a fundamental problem with EPSA endorsing a new market power test that is more stringent than we think is necessary.  We would recommend that EPSA support the Limited Competing Supplier Test, or perhaps simply take the position in option 5 (no test for bid-based markets operated by an ISO or RTO).  We simply believe that EPSA should not be "negotiating with itself" at this juncture.  That is, we should not assume that the majority of the Commissioners are with Massey.  We should use this paper to argue to the other Commissioners and staff that if they move off Hub and Spoke, they only need to move incrementally, not dramatically.  In making this recommendation we recognize that this may not be enough for FERC and we may not like what we end up with.  But Williams is simply not prepared to support a position we really don't agree with in the hope that we can avoid an even worse result.  I particularly recall Linda Breathitt's reservations about these issues (voiced at the meeting a month ago) and am hopeful that we can influence Wood and Brownell in this regard.

        The language that reiterates EPSA's position that FERC's primary focus should be on getting market design right is very well done.  Also the arguments on why it would be disastrous to condition our market based rate authority is well done and timely.

        We recognize that EPSA has been working on this issue for weeks now, but this is not a simple issue and we have needed this time to think it through.  We appreciate your efforts and believe this is an important issue for EPSA.   Thanks, Judy Neason

-----Original Message-----
From: Erin Perrigo [ <mailto:EPerrigo@epsa.org>]
Sent: Thursday, November 08, 2001 10:06 AM
To: fallonr@dsmo.com; mfgildea@duke-energy.com;
Steve.Huntoon@dynegy.com; acomnes@enron.com;
dennis.capella@exeloncorp.com; jeffrey.roark@mirant.com;
jack.hawks@neg.pge.com; jadillon@pplweb.com; Neason, Judy
Cc: Julie Simon
Subject: EPSA MBR Paper

Attached is the last draft of the MBR paper from Boston Pacific.  We are not sending it to the entire group at this point - but would like provide those who have been most active an opportunity to see it one more time.  We'd like to have all comments by tomorrow, COB.

-Erin

Erin N. Perrigo
Manager of Policy
Electric Power Supply Association
1401 New York Ave., NW
11th Floor
Washington, DC  20005
p)  202.628.8200
f)   202.628.8260
eperrigo@epsa.org


Tried to call but couldn't reach you - I think we do need to discuss contracts for both of them and find the money for them.
I am assuming from this that you are in - which is great news.

I will forward to Oxley to make him aware that there is something coming.
--------------------------
Sent from my BlackBerry Wireless Handheld


System Outage Notification
Outage Description:
Due to changes in the Enron environment, SAP will be unavailable during its normal maintenance window to complete system updates.
Date & Time of Outage:
Outage Commences:  April 28,2002 @12:01:00AM
Outage Ends: April 28,2002 @3:00:00 PM
Outage Abstract:  All Production servers (Apollo Production, HR Production, IBuyIt) will be unavailable.
Outage Implication: No access during this outage.
Contacts:
Contact:	Contact Information:
ISC Customer Care 	713-345-4727
Kenny Shih 	 800-696-9895


Below is a summary of upcoming RTO-related events that Enron is participating in.

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

Week of October 22

Regulatory proceeding before the Indiana Commission on the transfer of control of transmission assets by the IN IOUs to MISO and Alliance.

Wednesday, October 24

FERC Meeting - Discussion of RTO Developments for the Northeast, Southeast, and Midwest.  Separate docketed items include (1) Reliability, Security and Market Operations, and (2) Electricity Market Design and Structure.

October 29 - 30

Illinois Energy Leadership Conference - Illinois Commissioner Edward Hurley and Richard Sergel, President & CEO of National Grid USA to discuss RTOs.

October 31/November 1

Western Interstate Energy Board and Western Governor's Association Conference in Seattle - Issues to be addressed are Multi-State Protocols for Transmission Siting/Permitting, and the Western RTOs and Seams Issues.
FERC RTO NOPR on Market Design to be issued
FERC orders in Northeast, Southeast and Midwest RTO proceeding


Hi Jeff,

I am Andy Liu, Co-founder and President of NetConversions, a company based
in Seattle.  Our company helps Fortune 1000/Global 2000 companies improve
their online presence and email communications to better serve customers.
Our True Usability(TM) solution identifies areas of improvement that will
ensure better customer experience thus driving more customers to pay their
bills online or to conserve more energy or to facilitate communication.
Given your business objectives, we can help you achieve it on a large scale.
We can help launch an email campaign that improves each time an email is
opened.  Our technology is based on leading research from Wharton and
UT-Austin professors and have been proven to be successful.  I would like to
share with you some of the solutions we use to help our clients realize
their business goals.  I'd be happy to speak with you over the phone.  What
time would be most convenient for you: Friday, May 11th at 10am or Monday,
May 14th at 11am? Thanks!

Best regards,
Andy Liu

President
NetConversions, Inc.
http://www.netconversions.com
(O)206.256.9815 x215
(F)520.833.6969


CUNNINGHAM

Max Inj. 375MM2  Max W/D 550MM2 without Horsepower and 600MM2 with horsepower

REDFIELD

400MM2 Max W/D Min. W/D 250MM2
Keep Redfield in 300MM2 range

LYONS

50MM2 Max W/D Need horsepower to get the gas out and will look at bringing the horsepower on,  on Monday.  John Sturn will probably be sending out some notes later on the horsepower.  With the horsepower they hope to bring Max W/D up to 70MM2.

GARNER

200-300MM2 Vaporization if needed

WRENSHALL

200-300MM2 Vaporization if needed.  They are still liquefying at the present.


This guy is working on an EOL project for me right now.  Can you send him a file with our EOL trades for today or yesterday with product, price, buy/sell, and timestamp but counterparty names deleted

 -----Original Message-----
From: 	Thuraisingham, Ravi
Sent:	Thursday, October 18, 2001 4:26 PM
To:	Arnold, John
Subject:	RE: Neural Networks

John, just a reminder, please send a sample gapping data when you get a chance.

Ravi Thuraisingham, CFA
Director, Storage Trading
Enron Broadband Services
p  713.853.3057
c  713.516.5440
pg 877.680.4806
ravi.thuraisingham@enron.com


All is ok, but the ng-x- whatever books at the top are not mine.

 -----Original Message-----
From: 	McLaughlin Jr., Errol
Sent:	Monday, October 22, 2001 6:08 PM
To:	Loibl, Kori
Subject:	FW: Active/Inactive books

Kori,

Please tell me which ones are yours.

Thanks,

Errol

 -----Original Message-----
From: 	Gossett, Jeffrey C.
Sent:	Wednesday, October 17, 2001 4:19 PM
To:	Bike, Anne; Keiser, Kam; Love, Phillip M.; McLaughlin Jr., Errol; Winfree, O'Neal D.
Cc:	Lobusch, Christy
Subject:	FW: Active/Inactive books

Please look over this list and get back with Christy.

Thanks
 -----Original Message-----
From: 	Lobusch, Christy
Sent:	Wednesday, October 17, 2001 4:13 PM
To:	Gossett, Jeffrey C.
Subject:	Active/Inactive books

Dear Jeff-

We have the following books appearing on our active list in the active/inactive website.  Could someone in your group please verifty the following:

they are legitamate books
that the books are currently active books
and, the responsible book admin for the book

I would appreciate it.  I need a response by Monday, October 22.  Thanks,

Christy

 << File: Gas.xls >>


Sorry I didn't return your call last week.  I actually didn't check my voice mail until Friday after work and thus saw little point in calling back as you were probably in some remote area of pristine, scenic beauty by that time.  Hope the camping trip was a rousing success and allowed you to reconnect with your old friends and old self.  I am in desperate need of natural beauty and negligible pollution but have alas been trapped in Houston the past couple of weekends.  I see a road trip in the not too distant future for myself, if only to get a way for a while.

Susan


Yahoo! News	Edit Breaking News Alerts - Yahoo!

	Breaking News Alert	 edit
JERUSALEM _ Explosion wounds two near Jaffa Gate in Jerusalem, police said.

	 [IMAGE]
	[IMAGE]

If you no longer wish to receive this alert, click here to unsubscribe.
If you have questions, send us feedback.

Copyright , 1994-2001 Yahoo! Inc. All rights reserved. Yahoo Privacy Policy


To All,

Attached is a clean version of the comments to be filed with FERC today (8/20) relating to the WSCC-wide price mitigation.

Highlights:

EPMI requests that the caps be removed, using arguments that caps are not beneficial to development of a robust market in the west.
If - a cap is necessary we suggest an alternative where the highest cost unit in the entire west set the price.
Price certainty - we explain how the market needs price certainty and that the price cap with the potential for changing hourly is detrimental to a functioning energy market
We point out the lack of independence of the CAISO and their board.  The fact that the ISO operates with the vested interest of CA and not the entire west.
Marketer cost recovery - we describe the current problem where marketers are excluded from "above-the-cap" bidding and justification.

FYI, our comments line-up closely with those being filed by PGE and other PNW entities, so the Commission will be getting a consistent message from many WSCC entities - remove the cap.

I have briefed Tim on the content of the filing and Ray has spoken to Kim Curry of Bracewell/Patterson and approved this be filed on our behalf today 8/20.

Any questions or concerns, please contact me.

Kind Regards,

Dave

 -----Original Message-----
From: 	"Kimberly Curry" <kcurry@bracepatt.com>@ENRON [mailto:IMCEANOTES-+22Kimberly+20Curry+22+20+3Ckcurry+40bracepatt+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Monday, August 20, 2001 11:40 AM
To:	Perrino, Dave; Alvarez, Ray
Subject:	Comments (with Dave's edits)

Guys:

Attached is the latest draft, which incorporates dave's edits.  I have forwarded a copy of this draft to Coral as well, to see if they would like to join on.  I have attached this draft in WordPerfect  because we are having a little trouble over here at Bracewell converting documents from WordPerfect to Word.  If you have any trouble opening this document, please let me know.

 - COMMENTS.WPD << File: COMMENTS.WPD >>


I have involved Andy Edison, one of ENA's litigation managers, in reviewing
our potential claims against Westinghouse with respect to the "wet" turbine
and the general issue of whether we have any type of "duty to mitigate" the
expense of the cost of the replacement generator (ie, whether we have a duty
to purchase the replacement generator at $3 mm since its cost might go up.)
Andy has some interesting thoughts and questions, including why we aren't
pressing Westinghouse harder with our claim and aren't pressing them harder
to hold their price on the replacement generator for a longer time period
given their potential exposure to us (arguably we might have a duty to
mitigate the expense associated with the replacement generator if we have a
reasonable basis for believing that the cost might go up).  Since there are
no black and white answers, it probably would be useful to have a meeting to
discuss our thoughts and address questions that we and you all may have.
Please let me know your availability to meet either this week or early next.
Lastly, Andy has noted that under our insurance policy we need to bring a
lawsuit against the insurance carrier if they to fail resolve our claim
before July 2001.  The practical impact of this is that we need to prepare a
letter agreement whereby we and the insurance company agree to extend that
time period.  Andy has recently prepared such a letter with respect to
another claim and has agreed to prepare one for this claim as well.  Thanks.


You all should have received instruction from Sheila W. on the system for
salaries. I need that info late today so I can look at over the weekend.
Numbers are due Monday am. Rick


Two of the internet attorneys at Marval came over today to look at the system
online.  They posed the following questions that I did not know the answer
to.  Can you help me out on getting them a response today if possible?

1.  They would like to know the intent behind the sentence in Section (2) of
the password application that prohibits the user form using the password
outside their country.  I told them it was probably a tax driven issue but
was not sure.

2.  They need to know if the user must scroll through and agree to the GTC
each time they transact a trade.  I believe each product is represented by a
separate line on the page and that each product has its own GTC even thought
several related products will probably have identical GTCs.  I told them I
thought that for each product that you only had to select it once, but that
for each product, even if the GTC is the same as another produce you have
reviewed, you must accept the GTC again.  Is this correct?

3.  Are the Enron trading entities signing service agreements with EOL for
use of the system?

4.  They wanted to know if the trading entities providing the prices etc. for
each product could be considered "content" for EOL and be considered value
for which EOL should pay the trading entities.  I haven't heard of this issue
before but I said I would ask.

5.  As a proof issue, what would be the process of proving and electronic
trade?  How can we show we have not modified the screens or manipulated the
data.  How would the data be presented to a court?

6.  How long are the electronic trades retained in our systems and how are
they retained?

Any help you can give me would be appreciated.

Thanks,
Brent


How's this??


Tanya:  I don't know if Dow is trading financial, but if so, it looks as
though we're having a problem.  Who (in credit) will handle Dow?  I'm
expecting a call from the plastics guys once they read Mark's message below.
By the way, I worked with Rod on this one  Thanks.  Sara

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 02/21/2001 08:59 AM -----

	Mark Taylor
	02/20/2001 06:59 PM

		 To: John Viverito/Corp/Enron@ENRON
		 cc: Adam Gross/HOU/ECT@ECT, Alan Engberg/HOU/ECT@ECT, Michael A
Robison/HOU/ECT@ECT, (bcc: Sara Shackleton/HOU/ECT)
		 Subject: RE: ISDA TDCC(Dow)/Enron

Gentlemen:

Several points regarding the below:

We worked for the first half of 1999 to try and negotiate a master agreement
with TDCC but failed due to an inability to agree on credit terms (i.e. TDCC
wouldn't sign a master with ANY credit terms in it at all).  Rod Nelson was
the Credit Dept. person responsible for this counterparty at that time.
If we want to start down this road again, the first step is to contact
someone in Credit and have them generate the necessary credit terms for  a
master agreement.  Unless the commercial folks have already, I'll ask someone
in my group to get that process started.
The e-mail from Dow indicates:
 "TDCC has never accepted and cannot accept the Terms and Conditions included
in the
confirmations sent by Enron."
All credit concerns aside, if Dow is not signing and returning our
confirmations, then based on this statement our derivatives trading with them
should stop immediately on legal grounds.
The e-mail as forwarded to me did not contain the attachment.  Does someone
here have it?

Let's hope it works out better this time.

Mark

	John Viverito@ENRON
	02/20/2001 01:55 PM

		 To: Mark Taylor/HOU/ECT@ECT
		 cc: Michael A Robison/HOU/ECT@ECT, Adam Gross/HOU/ECT@ECT, Alan
Engberg/HOU/ECT@ECT
		 Subject: RE: ISDA TDCC(Dow)/Enron

Mark-

Please see the correspondence below regarding Dow Chemical' s desire to enter
into an ISDA with us.

Let us know who will be leading the charge from legal.

Thanks,

John

John Viverito
Phone (713) 345-7814
Fax       (713) 646-3490
e-mail John.Viverito@enron.com
----- Forwarded by John Viverito/Corp/Enron on 02/20/2001 01:50 PM -----

	Alan Engberg@ECT
	02/20/2001 12:41 PM

		 To: John Viverito/Corp/Enron@Enron
		 cc: Michael A Robison/HOU/ECT@ECT, Adam Gross/HOU/ECT@ECT
		 Subject: RE: ISDA TDCC(Dow)/Enron

John/Mike, can someone contact Luis Antuna (name and number below) to discuss
putting together an ISDA between Dow Chemical Co. and EGM.

Thanks,
Alan
---------------------- Forwarded by Alan Engberg/HOU/ECT on 02/20/2001 12:36
PM ---------------------------

	From:  Adam Gross                           02/14/2001 03:21 PM

To: Alan Engberg/HOU/ECT@ECT
cc:
Subject: RE: ISDA TDCC/Enron

---------------------- Forwarded by Adam Gross/HOU/ECT on 02/14/2001 03:20 PM
---------------------------

"Billings, Mike (ME)" <mbillings@dow.com> on 02/09/2001 11:28:11 AM
To: "Antuna, Luis (L)" <LAntuna@dow.com>, "'agross@enron.com'"
<agross@enron.com>
cc: "Corbett, Cheryl (CE)" <CECORBETT@dow.com>
Subject: RE: ISDA TDCC/Enron

Thanks Luis,

I really appreciate your initiative to document that we have never accepted
and cannot accept their Terms and Conditions.  We are reversing the flow and
will leverage an ISDA Agreement that works for us and for them.

Thanks,
Mike

>  -----Original Message-----
> From:  Antuna, Luis (L)
> Sent: Friday, February 09, 2001 11:59 AM
> To: 'agross@enron.com'
> Cc: Billings, Mike (ME); Corbett, Cheryl (CE)
> Subject: ISDA TDCC/Enron
>
> Mike Billings has given us your name as the first contact person in Enron
> to negotiate an ISDA agreement with The Dow Chemical Company (TDCC).  Our
> files show an ISDA between Enron Capital & Trade Resources and two Dow
> entities (Dow Hydrocarbons & Resources, and Dow Chemical Canada). In
> addition to this, my understanding is that TDCC (my predecessor in this
> position) and Enron ( presumably a lawyer) had some discussions about an
> ISDA, but for some reason they were not successful. Despite this, the
> level of trading between the two companies have increased and TDCC has
> never accepted and cannot accept the Terms and Conditions included in the
> confirmations sent by Enron. For these reasons, we think we should agree
> on an ISDA where conditions acceptable to both parties can apply to the
> intense trading between the two companies.
>
> In order to speed up the process, I have enclosed to this message Dow's
> template for the ISDA Schedule. We would appreciate if Enron could review
> the attached draft and come back with any comments or issues for
> discussion. Please forward this message to the responsible person asking
> him to contact me for any discussion. Thanks.
>
> Regards
>
>  << File: Enron North America Corp.(draft) 2-9-01.doc >>
>
>
> Luis Antuna
> Attorney - Financial Law
> The Dow Chemical Company
> 2030 Dow Center
> Midland, MI  48674
> Tel: (517) 638-6789
> Fax: (517) 636-0861
> lantuna@dow.com
>


for some reason that contact was inactivated -if that's definitely the
contact, i'll have gcp re-activate it.  that's strange, i wonder why  it was
inactivated.  just let me know.

   Kate Symes @ ECT                01/29/2001 12:16 PM

To: Kimberly Hundl/Corp/Enron@ENRON
cc:

Subject: Re: conoco deals #506549.01, 506550.01, 506551.01

The contact name is Jack Wells, and his phone number is (281) 293-6030. Would
you like me to enter this info into the deals?

Kate

Kimberly Hundl@ENRON
01/29/2001 08:23 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: conoco deals #506549.01, 506550.01, 506551.01

hi kate,
these sean crandall deals need contacts.  can you please get a good contact
name (and phone #) and i will put in a gcp request to have it added to the
drop down list in deal entry.
i'm too lazy to press the shift key lately, sorry -no caps.
thanks for your help!
kim


----- Forwarded by Jeff Dasovich/NA/Enron on 02/14/2001 02:03 PM -----

	"Julee Malinowski-Ball" <jmball@ns.net>
	02/14/2001 11:26 AM
	Please respond to "Julee Malinowski-Ball"

		 To: "William Hall" <wfhall2@duke-energy.com>, "Tony Wetzel"
<twetzel@thermoecotek.com>, "Sue Mara" <smara@enron.com>, "Steven Kelley"
<steven@iepa.com>, "Steve Ponder" <steve_ponder@fpl.com>, "Steve Iliff"
<siliff@riobravo-gm.com>, "Stephanie Newell"
<stephanie-newell@reliantenergy.com>, "Ross Ain" <rain@caithnessenergy.com>,
"Roger Pelote" <roger.pelote@williams.com>, "Robert Lamkin"
<rllamkin@seiworldwide.com>, "Richard Hyde" <rwhyde@duke-energy.com>, "Randy
Hickok" <rjhickok@duke-energy.com>, "Paula Soos"
<paula_soos@ogden-energy.com>, "Nam Nguyen" <nam.nguyen@powersrc.com>, "Marty
McFadden" <marty_mcfadden@ogden-energy.com>, "Lynn Lednicky"
<lale@dynegy.com>, "kent Palmerton" <kent.palmerton@williams.com>, "Ken
Hoffman" <khoffman@caithnessenergy.com>, "Kate Castillo"
<ccastillo@riobravo-gm.com>, "Kassandra Gough" <kgough@calpine.com>,
"Jonathan Weisgall" <jweisgall@aol.com>, "John Stout"
<john_h_stout@reliantenergy.com>, "Joe Ronan" <joer@calpine.com>, "Joe Greco"
<joe.greco@uaecorp.com>, "Jim Willey" <elliottsa@earthlink.net>, "Jeff
Dasovich" <Jeff.Dasovich@enron.com>, "Jack Pigott" <jackp@calpine.com>, "Jack
Hawks" <jack.hawks@gen.pge.com>, "Hap Boyd" <rboyd@enron.com>, "Greg Blue"
<gtbl@dynegy.com>, "Frank DeRosa" <fderosa@sanfrancisco.usgen.com>, "Eric
Eisenman" <eric.eisenman@gen.pge.com>, "Eileen Koch" <eileenk@calpine.com>,
"Ed Tomeo" <ed.tomeo@uaecorp.com>, "Duane Nelson" <dnelsen@msn.com>, "Doug
Fernley" <fernley.doug@epenergy.com>, "Dean Gosselin"
<dean_gosselin@fpl.com>, "David Parquet" <dparque@ect.enron.com>, "Curtis
Kebler" <curtis_l_kebler@reliantenergy.com>, "Curt Hatton"
<Curt.Hatton@gen.pge.com>, "Craig Chancellor" <craigc@calpine.com>, "Cody
Carter" <cody.carter@williams.com>, "Carolyn Baker"
<cabaker@duke-energy.com>, "Bob Gates" <bob.gates@enron.com>, "Bob Escalante"
<rescalante@riobravo-gm.com>, "Bob Ellery" <bellery@spi-ind.com>, "Bill
Woods" <billw@calpine.com>, "Bill Carlson"
<william_carlson@wastemanagement.com>, "Larrea, John"
<John.g.Larrea@williams.com>, "Jan Smutny Jones" <smutny@iepa.com>, "Katie
Kaplan" <kaplan@iepa.com>
		 cc: "Dave Modisette" <dmodis@ns.net>
		 Subject: Yesterday's Sen Hearing

The Senate Energy Committee met yesterday afternoon and passed two very
important bills.

SB 6x (Burton/Bowen), as amended, would establish a state power and
financing authority. The measure passed on a party-line vote with no
Republican votes.  What makes SB 6x interesting to IEP members is that is
provides financing through the Authority for environmental improvements to
existing powerplants 30 years or older.  IEP testified in support of the
bill if it was amended to bind Authority,s eminent domain powers.  Senator
Burton agreed and IEP is currently drafting language on this issue.
Similarly, Burton agreed to work with Senator Morrow on language that would
limit the Authority to only supplementing private power generation and not
building power plants where they are not needed.   The amended version is
attached.

SB 33x, as amended, would authorize the Governor to enter into negotiations
with the IOUs to purchase their transmission system.  The Governor,s plan
would have to be approved by the Legislature by only a majority vote.  If
approved the Treasurer would have the authority to issue revenue bonds to
pay for the transmission system.  This measure also passed on a party-line
vote.  IEP submitted written opposition to the bill as introduced, but will
continue to voice its concern with the state being both a market participant
and owning the transmission system as the bill moves through the legislative
process.  The amended version is not in print yet.

Please contact me if you have any questions.

Julee Malinowski-Ball
Senior Associate
Edson + Modisette
916-552-7070
FAX-552-7075
jmball@ns.net

 - sbx1_6_bill_20010213_amended_sen.pdf


Attached is a revised fuel use table.  The first did not include the San Juan station's fuel for 1000 MMcf/d expansion.

Ron M.


We will be explaining the process to Tom Chapman for the East and Samantha Law for the West.

Stacey

-----Original Message-----
From: Hall, Bob M
Sent: Tuesday, January 29, 2002 5:31 PM
To: White, Stacey W.
Subject: RE: DPR reporting for 22nd trading due today - request by Fallon

yes,  can you tell me who would be the best.

thanks

bob

-----Original Message-----
From: White, Stacey W.
Sent: Tuesday, January 29, 2002 5:10 PM
To: Hall, Bob M
Subject: FW: DPR reporting for 22nd trading due today - request by Fallon

Bob,

What is the plan for this going forward?  I am expecting that you will want to use my risk estate employees for this, I am correct?

Stacey
-----Original Message-----
From: Abel, Chris
Sent: Monday, January 28, 2002 3:34 PM
To: Hall Jr., Robert L.; Gossett, Jeffrey C.; White, Stacey W.; Albrecht, Kristin; Reeves, Kathy; Gillis, Brian; Pearce, Barry; Miralles, Albert; Hall, D. Todd; Sweeney, Kevin; Earnest, Scott; Fondren, Mark; Swinney, John; Prejean, Frank; Horn, Cindy; Thurbin, Simon; Sharma, Shifali; Mao, Shari; Postlethwaite, John; Evans, Casey; Glover, Sheila; Carrington, Clara; Best, John
Cc: Beck, Sally; Wilson, Shona; Considine, Keith; Trevino, Susan; Ayala, Susie; Apollo, Beth
Subject: FW: DPR reporting for 22nd trading due today - request by Fallon

As a follow up to this email, we will start reporting the DPR's on Wednesday's and Monday's, for Tuesday and Friday valuations.  The first Wednesday will be the 30th of January.  Each day we should expect to report the positions, P&L and PRMA of only those transactions we expect to fulfill.  With the exception of Gas, Susan Trevino will be sending the benchmarks to each of the groups for their review.

If anyone anticipates any problems with this time frame, please call me or Shona to discuss.

Chris

-----Original Message-----
From: Abel, Chris
Sent: Thursday, January 24, 2002 11:29 AM
To: Hall Jr., Robert L.; Gossett, Jeffrey C.; White, Stacey W.; Albrecht, Kristin; Reeves, Kathy; Gillis, Brian; Pearce, Barry; Miralles, Albert; Hall, D. Todd; Sweeney, Kevin; Earnest, Scott; Fondren, Mark; Swinney, John; Prejean, Frank; Horn, Cindy; Thurbin, Simon; Sharma, Shifali; Mao, Shari; Postlethwaite, John; Evans, Casey; Glover, Sheila; Carrington, Clara
Cc: Beck, Sally; Wilson, Shona; Considine, Keith; Trevino, Susan; Ayala, Susie; Apollo, Beth
Subject: DPR reporting for 22nd trading due today - request by Fallon

Fallon has requested a DPR be prepared 2X a week for positions that we are executing on (active/live positions only, no terminations or deals we are not executing on).  We have put together the shell of how this DPR will look.  To start this process we are planning to present to him positions (column E) and PRM value (column X) as of 1/23.  To do this, we have laid out the following steps:

- we need to get the PRM values directly from you (column X)
- we will run the benchmarks and need to work with you to ensure you are happy with the benchmark numbers we have pulled from RMS (the exception is gas, we need the gas risk group to provide the gas bench to us)
- we need all of then exceptions/qualifications to your numbers
- we will need the other information in the schedule to be reported to us starting next week, but not for this exercise

Please confirm to me/Shona that you can get us this info by 230 pm today.

Lastly, I am attaching the unofficialized book list as these books will not make it into the benchmarks and need you to confirm that there are no 3rd party positions in these books.

Thanks in advance

Chris Abel
Manager, Risk Controls
Global Risk Operations
chris.abel@enron.com <mailto:chris.abel@enron.com>
713.853.3102


pls print.  thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 03/08/2001 05:21 PM ---------------------------
From:	Jim Talcott/ENRON@enronXgate on 03/08/2001 03:54 PM
To:	Drew Fossum/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Mike W McGowan/ENRON@enronXgate, Lon Stanton/ET&S/Enron@ENRON, Rob Wilson/ENRON@enronXgate
cc:

Subject:	FW: KSAV letter

	Please take a look at the draft response to UtiliCorp below and provide any comments you may have.  Thanks.  jim

 -----Original Message-----
From: 	Smith, Ann
Sent:	Thursday, March 08, 2001 3:43 PM
To:	Talcott, Jim
Subject:	KSAV letter


Gentlemen,

      The $13,529 congestion charge on the 18th that was allocated to the stCA desk has been split between both of your desks though the change will not show up until the month end flash reports.  Look for it then but trust me it has been changed.  In the future I will ask about HA congestion charges that show up on stCA to make sure they are warranted.  Any questions let me know.

later,

Darren

 -----Original Message-----
From: 	Reyes, Jim
Sent:	Friday, August 24, 2001 12:31 PM
To:	Cavanaugh, Darren
Cc:	Mallory, Chris; Williams III, Bill
Subject:	8/18/01 HA Congestion

Darren,

RT and stCal desks have decided to divide the congestion cost between the two desks.  We need a manual entry to adjust this.

Jim