======================================================
VENTUREWIRE --- Monday, October 30, 2000
======================================================
Private Company Business News
------ Published Daily by Technologic Partners -------
http://technologicpartners.com
======================================================

Top Stories:

o e4e Launches With $125 Million to Build Net Services Firms
o WeddingChannel CEO and Three Execs Resign
o Xclerate Lays Off 36 Support Staff  But Will Hire Techies
o Online Pet Store Petopia Cuts Staff by 60%

|||||||||||||||||||| Advertisement ||||||||||||||||||||

He's no Fox Mulder, but few people have searched more
diligently for aliens than he has.

He's Dr. David Anderson, the director of SETI@home,
the largest and most successful computing project in
history, and the CTO of a distributed computing start-up.
He'll speak about some of the challenges, issues, and
limitations of the exploding field of distributed computing at

Technology Outlook 2000:
The future of pervasive computing

December 4 and 5, San Francisco
http://www.tpsite.com/tp/conf/to2000/?vw=20001031
A VentureWire investment conference.

|||||||||||||||||||||||||||||||||||||||||||||||||||||||

Also in This Issue:

New Money:
o Wireless Application Firm Mobileum Gets $45 Million Series A
o Network Service Firm Bang Networks Has $18 Million Series A
o Semiconductor Firm Ziptronix Secures $6.5 Million Round One
o Telcom Software Firm WhisperWire Lands $14 Million Series A
o First Round for Real Estate Industry Financial Services Firm
o Handheld Service Provider Ubiquio Closes Series A Round
o Travel Package Site Site59.com Gets $10.5 Million Series B
o iMagicTV Gets $15 Million From Cisco and AOL
o Latintech, GP Fund Tech Services Firm Solvo, U.S. Subsidiary
o Sylantro Systems Raises $55 Million Series C Round
o Content Tech Firm Digital Fountain Has $20 Million Series C
o Mortage Marketplace IMX Exchange Gets $18 Million Round Six
o Mobile Communications Firm PopSystems Gets 3i Finland Funds
o ASP for Localized Content Lasoo Gets Shaw Ventures Funding
o Provider of Software Translation Services Raises  $696,000
o Spanish VC Talde Takes 27% Stake in IT Consultant Solmicro

New Products:
o C1 Communications and Wispra Form New Communications Firm

New Deals:
o Scout Electromedia Shuts Down After Idealab! Pulls Back
o Princeton Review Takes Stake in Education ASP SchoolNet

M&A:
o Precise Acquires Management Firm Savant for $20 Million
o EntrePort to Buy University.com for $15.4 Million
o Quest Software Buys Monitoring Firm OnWire Technologies
o Rediff.com to Buy U.S.-Based Indian Portal ThinkIndia.com

New Directors:
o Online Seminar Provider AvidLearn Names Board of Directors

New People:
o Integral Access Appoints Former Lucent Manager As CEO
o NotifyMe Networks Names Former Microsoft Executive as CEO

VC Fund News:
o Antfactory and Nikko Securities Form $27.7 Million New Fund
o Eos Internet Ventures Restructures as Holding Company
o Macceleration I KY Launched With $2.5 Million Investment

VW Corrections:
o Notara

|||||||||||||||||||| Advertisement ||||||||||||||||||||

P2P OR NOT P2P?

We've heard distributed computing and peer-to-peer networks
will change computing. But how? Dozens of companies are
making bids for pieces of the P2P pie. Some of them will
succeed, but many will fail. Industry Futures,one of five
expert panels at Technology Outlook 2000, will examine the
business plans and challenges in distributed computing:

David P. Anderson, CTO, United Devices
Shishir Mehrotra, President & CEO, Centrata
Andreas Stavropoulos, Director, Draper Fisher Jurvetson
Steve Stephansen, President & CEO, WebV2

Only at Technology Outlook 2000:
The Future of Pervasive Computing
December 4 and 5, San Francisco
A VentureWire investment conference.
http://www.tpsite.com/tp/conf/to2000/?vw=200010312

|||||||||||||||||||||||||||||||||||||||||||||||||||||||

======= Top Stories =======

o e4e Launches With $125 Million to Build Net Services Firms

SANTA CLARA, Calif. -- e4e, an operating company
that will build and fund Internet services startups,
said it launched with $125 million in capital. The
company is backed by Global Internet Ventures, LNM
Internet Ventures, Walden International, Canaan
Partners, and individual investors. e4e, which has
been operating since May, was founded by K.B. Chandrasekhar,
chairman and CEO of Jamcracker and founder of Exodus
Communications and Somshankar Das, a former partner
with Walden International. Mr. Chandrasekhar will
serve as chairman and Mr. Das is president and CEO.
e4e said it will focus on building companies in
five markets: network management service, managed
IT services, IT consulting and implementation services,
wireless data services, and customer relationship
management. e4e is already working with Aztec Software,
an online engineering and Internet infrastructure
company, and e4e Labs, a high-tech incubator in
India.
http://www.e4einc.com/
_____________________________________________

o WeddingChannel CEO and Three Execs Resign

LOS ANGELES -- WeddingChannel.com, an online wedding
planning and content resource, said its chief executive
officer Rebecca Patton is stepping down along with
three members of her management team. Ms. Patton,
who will remain on the company's board of directors,
will be replaced by company president Adam Berger,
who will now hold both posts.  A company spokesperson
said relocation issues were the problem, noting
that the company plans to move its San Francisco
offices to Los Angeles and that Ms. Patton and the
three executives were unwilling to move. Ms. Patton
was CEO of San Francisco-based online wedding gift
registry Della.com before it merged with L.A.-based
WeddingChannel in April. WeddingChannel's sales
office will remain in San Francisco. WeddingChannel
is funded by Kleiner Perkins Caufield & Byers, RRE
Investors, Goldman Sachs, Trinity Ventures, MSD
Capital, idealab!, MacAndrews & Forbes Capital Holdings,
and a number of public corporations.
http://www.weddingchannel.com/
_____________________________________________

o Xclerate Lays Off 36 Support Staff  But Will Hire Techies

FORT LAUDERDALE, Fla. -- Xcelerate, which provides
services for business-to-business Internet commerce,
said it laid off 36 workers, reducing its staff
to approximately 300. The company said it is restructuring
to bring the company to profitability at a more
rapid pace.  Most of the cuts were in overhead and
support staff, with some cuts among designers and
marketing strategists. The company also said it
was looking to hire about the same number of workers
for technical jobs. Xcelerate raised a $35 million
second round of funding this past spring and is
backed by Bessemer Venture Partners, the Carlyle
Group, and idealab! Capital Partners. Xcelerate
said the restructuring was initiated by the company's
management.
http://www.xcelerate.com/
_____________________________________________

o Online Pet Store Petopia Cuts Staff by 60%

SAN FRANCISCO -- Online pet supplies store Petopia.com
said it is laying off approximately 120 employees,
or 60% of its staff. The company said it has been
trying to secure additional funding since the spring,
and that it considered merging with a competitor
or aligning with Petco, the publicly traded pet
store which holds a 26% stake in the company, but
that it has been unsuccessful. Petopia will retain
about 77 employees but is cutting staff in every
department, including marketing, merchandising,
order fulfillment, warehousing, human resources,
finance, and its Web team. Two departments, corporate
communications and business development, are shutting
down completely. Petopia will keep its Web site
functioning and continues to look for funding. The
company has received investments from Greyrock Capital,
Attractor Investment Management, BancBoston Ventures,
Comdisco, Europe@web, Petco, and Technology Crossover
Ventures.
http://www.petopia.com/

======= New Money =======

o Wireless Application Firm Mobileum Gets $45 Million Series A

PLEASANTON, Calif. -- Mobileum, which provides software
for wireless commercial applications and carrier
services, said it raised $45 million in its Series
A funding. The round was led by Shelter Capital
Partners and included investments from Accretive
Technology Partners, BEA Systems, MC Capital, MC
Silicon Valley, Mitsubishi International, and Tibco
Software. The company said it will use the funding
for the deployment of its mobile commerce software.
http://www.mobileum.com/
_____________________________________________

o Network Service Firm Bang Networks Has $18 Million Series A

SAN FRANCISCO -- Bang Networks, which provides real-time
network services, said it raised $18 million in
its Series A funding. The round was led by Sequoia
Capital and included investments from Western Technology
Investment, Wilson Sonsini Goodrich & Rosati, and
Angel Investors. Individual investors Netscape Communications
co-founder Marc Andreessen, Network Appliance CEO
Dan Warmenhoven, MIT Media Lab chairman Nicholas
Negroponte, First Call founder Jeff Parker, and
Goldman Sachs managing director Randall Blumenthal
also participated in the funding. The company's
management includes former executives from Sony,
Lucent, Intel, and News Corp. The company said Mark
Kvamme from Sequoia Capital, and Dan Warmenhoven,
CEO of  Network Appliance, will take seats on the
its board of directors as a result of the financing.
http://www.bangnetworks.com/
_____________________________________________

o Semiconductor Firm Ziptronix Secures $6.5 Million Round One

RESEARCH TRIANGLE PARK, N.C. -- Ziptronix, a wafer-scale
semiconductor integration firm, said it raised $6.5
million in its first round of financing, led by
Alliance Technology Ventures. The company is a spin-off
of Research Triangle Institute (RTI). It is based
on a new technology to integrate semiconductors
of many types, materials, and functions within existing
semiconductor wafer fabrication processes. The company
plans to use the funds to license the technology
to large semiconductor firms, produce integrated
parts for electronic firms, and for product development.
http://www.rti.org/
_____________________________________________

o Telcom Software Firm WhisperWire Lands $14 Million Series A

AUSTIN, Texas -- WhisperWire, a startup that is
developing software for telecom carriers, said it
completed a $14 million Series A round of financing
led by Austin Ventures. Other investors include
Bob Allen, former chairman and CEO of AT&T, Reed
Hundt, former chairman of the U.S. Federal Communications
Commission, and Comdisco Ventures. Mr. Allen has
been named to the company board of directors.
http://www.whisperwire.com/
_____________________________________________

o First Round for Real Estate Industry Financial Services Firm

MUNDELIN, Ill. -- Circle Group Internet, a multi-service
Internet investment bank, announced CGI Capital,
its investment arm, has made an undisclosed investment
in MortgageBankingCenter.com, which provides financing
and closing-stage transactions services for the
real estate industry. The investment is part of
MortgageBankingCenter.com's first round of funding,
which also involved undisclosed institutional and
individual investors. Richard Levy, managing director
of CGI Capital, has taken a seat  on the company's
board of directors. MortgageBankingCenter.com is
looking to raise $7 to $10 million in its second
round, which is expected to begin in Decemeber.
http://www.mortgagebankingcenter.com/
_____________________________________________

o Handheld Service Provider Ubiquio Closes Series A Round

MINNEAPOLIS -- Ubiquio, a handheld service provider
that manages mobile devices for business customers,
said it has closed its Series A round of funding
from Andcor Companies, Backfin Capital, StartUpFund
I and Capitalyst Group, Intranet Solutions, Risdall
Linnihan Advertising, and individual investors.
The company declined to say how much it had raised,
but said it will use the funding to offer additional
services, expand its sales and marketing, and for
working capital.
http://www.ubiquio.com/
_____________________________________________

o Travel Package Site Site59.com Gets $10.5 Million Series B

NEW YORK -- Site59.com, a last-minute entertainment
and travel package Web site, said it completed its
$10.5 million Series B round of funding led by iFormation
Group. Accor, Bass Hotels and Resorts, and National
Leisure Group also joined the round. Site59, which
launched in May,  was incubated and backed by The
Boston Consulting Group. The company has raised
$14.5 million to date.
http://www.site59.com/
_____________________________________________

o iMagicTV Gets $15 Million From Cisco and AOL

SAINT JOHN, New Brunswick -- iMagicTV, which provides
content distribution systems via television and
other network services, said it has secured $15
million in pre-IPO funds from Cisco Systems and
America Online. The company, which filed for an
initial public offering last week, has also received
funding from Alcatel, Whitecastle Investments, and
Celtic House International.
http://www.imagictv.com/
_____________________________________________

o Latintech, GP Fund Tech Services Firm Solvo, U.S. Subsidiary

RIO DE JANEIRO -- Brazilian firms Latintech Capital
and GP Investimentos said they invested in Solvo,
which provides mission-critical technology services
to businesses. The company will use the funds for
development of its Boston-based subsidiary Automatos,
which will provide Internet-based technical support
and remote management services.
http://www.gpinvestimentos.com/
http://www.solvo.com.br/
http://www.automatos.com/
http://www.latintechcapital.com.br/
_____________________________________________

o Sylantro Systems Raises $55 Million Series C Round

CAMPBELL, Calif. -- Sylantro Systems, which develops
a applications-enabled software for voice services
over the Internet, said it raised $55 million in
its Series C round. The round was led by Bowman
Capital and included investments from Bank of America,
JP Morgan, Azure Capital Partners, the CIT Group,
Pyramid Technology Ventures, and Stanford University.
Sylantro's initial backers, including Mayfield Fund,
Accel Partners, Vanguard Venture Partners, and Hook
Partners, also participated. The company has raised
more than $75 million since its founding. Spencer
Punter, general partner with Bowman Capital, will
take a seat on the company's board of directors
as a result of the funding.
http://www.sylantro.com/
_____________________________________________

o Content Tech Firm Digital Fountain Has $20 Million Series C

SAN FRANCISCO -- Digital Fountain, which develops
technology for high-volume content delivery, said
it raised its Series C round of funding for $20
million. The company's latest funding brings its
total capital raised to $27.5 million. New investor
Matrix Partners led the round, which included previous
investors Adobe, Cisco Systems, Granite Ventures,
Sony, and Texas Instruments. Andrew Verhalen of
Matrix Partners will sit on the company's board
of directors. The company will use the funding for
further technology development, organizational growth,
and increasing its manufacturing and sales capabilities.
The company's technology combines mathematical algorithms
with standards-based IP multicasting to provide
delivery of content from a single source to an unlimited
number of recipients.
http://www.digitalfountain.com/
_____________________________________________

o Mortage Marketplace IMX Exchange Gets $18 Million Round Six

SAN RAMON, Calif. -- IMX Exchange, an Internet-based
marketplace for the wholesale mortgage industry,
said it has secured $18 million in its sixth round
of financing, led by previous investor Hummer Winblad
Venture Partners. Previous investors Lehman Brothers,
ABN AMRO, Mohr Davidow Ventures, Technology Crossover
Ventures, and Presidio Venture Partners also participated
in this round. The company said it will use the
funds to further develop its Web-based products
and workflow tools scheduled for January release.
IMX Exchange is also backed by BancBoston Capital,
Citicorp,  Intel, and board members Derek Proudian,
a former partner of Mohr Davidow Ventures, and William
Lacy, former chairman and CEO of MGIC Investment.
The company has raised $73 million to date.
http://www.imxexchange.com/
_____________________________________________

o Mobile Communications Firm PopSystems Gets 3i Finland Funds

ESPOO, Finland -- Popsystems, which develops software
products for mobile communications, said it received
an undisclosed amount of funding from 3i Finland.
As a result of the funding 3i will receive a 20%
equity stake in the company. Popsystems said it
will use the investment to develop an information
management product, Addpop. The company's president,
Kare Souru, said the company intends to expand into
the U.S. and Asian markets.
http://www.popsystems.com/
_____________________________________________

o ASP for Localized Content Lasoo Gets Shaw Ventures Funding

CALGARY, Alberta -- Shaw Ventures said it invested
in Lasoo.com, an ASP that delivers public and corporate
data in the form of relevant local content tailored
to the user's specific location. Financial details
of the investment were undisclosed.
http://www.lasoo.com/
_____________________________________________

o Provider of Software Translation Services Raises  $696,000

HELSINKI, Finland -- Multilizer, which provides
software translation serviced aimed at helping software
developers produce code in multiple languages, said
it raised FIM 20 million ($696,000) in its most
recent round of funding. The round was solely funded
by Miraimon, a Finnish investment company. The company
said it will use the financing for marketing and
product development.
http://www.multilizer.com/
_____________________________________________

o Spanish VC Talde Takes 27% Stake in IT Consultant Solmicro

BILBAO, Spain -- Spanish IT consultant Solmicro
said Spanish venture fund Talde took a 27% stake
in the company.  Solmicro said the funds will be
used for its national expansion.
http://www.solmicro.com/

======= New Products =======

o C1 Communications and Wispra Form New Communications Firm

MISSISSAUGA, Ontario -- C1 Communications, which
provides small and medium-sized businesses with
telecommunications services, said it signed a letter
of intent with Wispra Networks, a venture of Wispra,
TD Capital Group, and XO Communications, to create
a voice, data, and Internet communications company
in Canada. The new company will be called XO Communications
Canada and will be led by Tony Cassetta as chief
executive officer. Mr. Cassetta was C1 Communication's
president and chief operating officer. The rest
of C1 Communication's management team will become
management of XO Communications Canada. The company
said it will expect investments from TD Capital
Group, New Brunswick Investment Management, Alta
Communications, Charlesbank Capital Partners, Wispra,
and XO International.
http://www.c1communications.com/
http://www.wispra.com/

======= New Deals =======

o Scout Electromedia Shuts Down After Idealab! Pulls Back

SAN FRANCISCO -- Scout Electromedia, developer of
the Modo wireless information service, confirmed
reports of its demise, citing a lack of funding
to maintain its operations. The company said in
a statement that it received an enthusiastic response
from consumers, but did not have the funding it
needed to support its operations until profitability.
Sources close to the company say that a decision
by idealab! to stop funding the company triggered
the shutdown, though Scout's aggressive marketing
spending also contributed to the cash drain. Idealab!
declined to comment but released a statement on
Scout Electromedia's behalf noting that it was a
minority shareholder. Idealab, which pulled its
planned IPO earlier this month, was the lead investor
in the company's $18 million second round this past
spring. Scout Electromedia was also backed by Chase
Capital Partners, Flatiron Partners, and TechFund
Capital.
http://www.idealab.com/
_____________________________________________

o Princeton Review Takes Stake in Education ASP SchoolNet

NEW YORK -- The Princeton Review, a provider of
test preparation and college admissions services,
said that it will partner with and make an undisclosed
equity investment in SchoolNet, an ASP that offers
education management products for K-12 school districts.
The alliance includes development and distribution
agreements for Princeton Review's Homeroom.com,
a Web-based educational tool. SchoolNet will customize
its executive school district report provider system,
Account, and add the service to Homeroom.com, a
new application that will enable school administrators
to monitor and analyze their students' performance.
A representative from Princeton Review will join
SchoolNet's board of directors. Princeton Review's
investors include SG Capital and Olympus Partners.
SchoolNet is backed by SWWT, Seavest, Quad Capital
Partners, and individual investors.
http://www.princetonreview.com/
http://www.schoolnet.com/

======= M&A =======

o Precise Acquires Management Firm Savant for $20 Million

WESTWOOD, Mass. -- Publicly-traded Precise Software
Solutions, a provider of performance management
technology, said it acquired Savant, a developer
of performance management products and services,
for $20 million in cash and stock. Savant employees
and management will remain with the company. Precise
plans to use Savant's technology and product, Savant
Diagnostic Center, which provides a real-time illustrated
view of database and application activity, to expand
the company's services. Savant is backed by individual
investors.
http://www.precise.com/
http://www.savant.com/
_____________________________________________

o EntrePort to Buy University.com for $15.4 Million

SAN DIEGO -- EntrePort, a developer of business-to-business
electronic learning portals aimed at sales professionals,
said it has signed an agreement to acquire University.com,
a learning service provider that develops, hosts
and manages private label online universities, for
about $15.4 million. EntrePort said it will eventually
change its name to University.com and will combine
University.com with its e-learning portal, iSucceed.com,
in the company's real estate division. Earlier this
year, University.com, which was funded by individual
investors, launched an online learning program for
its first customer, Coldwell Banker Real Estate.
http://www.university.com/
http://www.entreport.com/
_____________________________________________

o Quest Software Buys Monitoring Firm OnWire Technologies

BOSTON -- OnWire Technologies, which provides real-time
monitoring and troubleshooting services for Oracle-based
applications, said it has been purchased by publicly
traded software company Quest Software for an undisclosed
amount of cash and stock. OnWire has been absorbed
into Quest Software, will remain in Boston, and
has retained all but one employee, president and
founder Peter Buchthal. OnWire Technologies has
been backed by individual investors.
http://www.quest.com/
http://www.onwiretech.com/
_____________________________________________

o Rediff.com to Buy U.S.-Based Indian Portal ThinkIndia.com

MUMBAI, India. -- Rediff.com India, an Internet
portal that provides the Indian community in India
and abroad with interest specific channels, local
language editions, and other services, said it is
acquiring the US-based Indian portal ThinkIndia.com
for an undisclosed amount. The combined companies
will operate as Rediff USA. ThinkIndia was funded
by North American venture capitalists and several
individual investors.
http://www.rediff.com/

======= New Directors =======

o Online Seminar Provider AvidLearn Names Board of Directors

CHERRY HILL, N.J -- AvidLearn, a provider of online
seminars, customized training, and continuing education
for individuals and corporations, announced the
company's board of directors. In addition to the
company's founder and chief executive officer, Ed
DuCoin, the board includes Peter Colella, Jr., managing
director, Colmen Capital Advisors; David T. DuCoin,
chief executive officer, Creative Marketing Solutions;
Larry Evans, executive vice president and founding
principal of Right Management Consultants; and James
Ksansnak, vice chairman, Aramark Corporation. The
company is backed by Mr. DuCoin and is currently
seeking Series A venture financing.
http://www.avidlearn.com/

======= New People =======

o Integral Access Appoints Former Lucent Manager As CEO

CHELMSFORD, Mass. -- Integral Access, which provides
intellgient IP-based systems for integrated communications
service providers, said it named Jack Cicon as president
and CEO. Mr. Cicon most recently served as manager
for Lucent Technology's multi-service access products
business unit. Integral Access is backed by investors
including Star Capital Group, Ascent Venture Partners,
BancBoston Ventures, Canaan Ventures, Coral Ventures,
Prism Venture Partners, St. Paul Venture Capital,
and Singapore-based Ssang Yong and Technology Fund.
http://www.integralaccess.com/
_____________________________________________

o NotifyMe Networks Names Former Microsoft Executive as CEO

SUNNYVALE, Calif. -- NotifyMe Networks, a developer
of interactive alerting platforms, said it named
Chuck Dietrick as chief executive officer. Mr. Dietrick
previously served as a general manager for Microsoft
and is chairman of the board at Cerebellum Software.
NotifyMe Networks' technology enables businesses
to provide time-sensitive information to customers,
suppliers, partners, and employees by phone, pager,
or email. The company is backed by Attractor Investment
Management and board members Halsey Minor, co-founder
and CEO of 12 Entrepreneuring, and Marc R. Benioff,
chairman of salesforce.com.
http://www.notifyme.com/

======= VC Fund News =======

o Antfactory and Nikko Securities Form $27.7 Million New Fund

TOKYO -- Nikko Securities and Antfactory Holdings
said they have created Antfactory Japan, a joint
venture that will provide incubation services in
Japan, with an investment of 3 billion Yen ($27.7
million). Antfactory said it intends to build a
team of 30 to 40 people in Tokyo that will be fully
integrated with its current incubators. The two
firms said they intend to raise more capital from
Japanese and international investors. Antfactory
has incubators located in fourteen countries and
is backed by a consortium of investors including
Citigroup, Allianz, Lloyds TSB, and Andersen Consulting.
http://www.antfactory.com/
_____________________________________________

o Eos Internet Ventures Restructures as Holding Company

LONDON -- Eos Internet Ventures, which provided
seed capital and development services for startups,
said it was restructuring into a holding company
and will cut an unspecified number of staff in an
effort to safeguard the existing assets in its portfolio.
The company's new focus will be ensuring its portfolio
investments are able to secure the funding they
require. Companies in the portfolio include Foodoo.com,
a food related site; Smove, which provides services
for movers and home owners; Jitstream, a site developer
and consulting service; and Complete, which provides
customer relationship management and logistics services
to businesses.
http://www.eosventures.net/
_____________________________________________

o Macceleration I KY Launched With $2.5 Million Investment

HELSINKI -- The Macceleration I KY, a venture fund
primarily for seed and start-up stage companies,
launched with an investment of EUR 3 million ($2.5
million) according to investor Menire. Menire contributed
approximately $1.4 million as a member of an investment
syndicate. The fund will invest in wireless, financial
value added services application developers and
will have a maximum of EUR 5 million ($4.1 million)
under management.
http://www.menire.com/

======= VW Corrections =======

o Notara

NEW YORK -- A story in Friday's VentureWire about
the appointment of Mark Dowley to Notara's board
of directors incorrectly described Mr. Dowley's
position at Momentum Worldwide. He is chairman and
chief executive officer.

|||||||||||||||||||| Advertisement ||||||||||||||||||||

I WANT MY PTV!

No one wants more television.
We all want better television.
And "better" is the television we want, when we want it.
That's PTV--personal television--coming to the consumer
from TiVo, makers of digital television recorders, and from
Gemstar, owner of TV Guide and its onscreen listings. It's
all part of pervasive computing, as you'll hear from TiVo
CEO Michael Ramsay and Gemstar CEO Henry Yuen at
Technology Outlook 2000: The Future of Pervasive Computing
December 4 and 5, San Francisco
A VentureWire investment conference.
http://www.tpsite.com/tp/conf/to2000/?vw=200010313

|||||||||||||||||||||||||||||||||||||||||||||||||||||||

SEND TO A FRIEND

To subscribe to VentureWire, tell your friends
and colleagues to go to:
http://venturewire.net/

This copy of VentureWire may be distributed
freely, provided that the distribution is without
charge, that the issue is distributed complete and
unaltered, and that all copies retain the Technologic
copyright notice.  Nothing that appears in VentureWire,
however, may be reproduced, saved, or stored in
a retrieval system without the prior written consent
of Technologic Partners.
_____________________________________________

TO SUBSCRIBE go to:
http://venturewire.net/

To CHANGE your address, send your old and new e-mail
address to:
change@venturewire.com

To UNSUBSCRIBE, send e-mail to:
listoff@venturewire.com

Send COMMENTS, QUESTIONS, or NEWS ITEMS to:
editor@venturewire.com

Entire Contents Copyright 2000 by Technologic Partners
VentureWire is a Service Mark of Technologic Partners
=====================================


From: Sara Shackleton on 06/19/2000 01:23 PM
To: Jarrod Cyprow/HOU/ECT@ECT
cc:
Subject: The sentence is:

The market for this Transaction is less liquid than other OTC derivatives
markets and, accordingly, this Transaction may be subject to greater risk
than other derivatives transactions.

This should be added to the confirm as:
 (i)  numbered paragraph 2 for the ISDA confirm
 (ii)  the second sentence (opening paragraph) of the omnibus


please print these for me.  Thanks.  mhc

 -----Original Message-----
From: 	"Scott Miller" <smiller@bracepatt.com>@ENRON [mailto:IMCEANOTES-+22Scott+20Miller+22+20+3Csmiller+40bracepatt+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Wednesday, August 22, 2001 2:57 PM
To:	Cash, Michelle; Engeldorf, Roseann
Cc:	cdade@bracepatt.com; Eden Sholeen
Subject:	Advanced Mobile Power Systems

Attached are a memo regarding the dissolution of AMPS, and  proposed minutes to the board of managers meeting scheduled for August  27.

Please call me at (713) 221-1131 with your questions or  comments.

Thanks.

Scott L. Miller
Bracewell & Patterson, L.L.P.
Phone  (713) 221-1131
Fax (713) 222-3242
email:  smiller@bracepatt.com
 - #1324667 v1 - MEMO RE WINDING UP.doc
 - #1323966 v1 - PROPOSED BOARD RES (AUG 27, 2001).doc


Good morning all:

The question has arisen as to whether Enron has "personal days", that,
you can take in case of repair problems at home; car problems; sick spouse,
sick child, etc.

I checked with HR and the Policy Manual and the answer is "no", but they
can be designated at the discretion of the supervisor.  I talked this over
with Vince and he has decided that the Research Group will be allowed
two (2) personal days per year to take care of personal business and
not have to take a vacation day, discretionary day, or leave of absence.

If you have advance notice (such as an air conditioner repair scheduled),
please let me know when you are going to take these days.  If an
emergency arises with no notice, please call in and let me know that you
are taking a personal day.  It will be coded on your time sheet.

These two personal days will in no way cancel or take the place of, "funeral
leave", "family leave", or "civic duty leave".  They are just a way of being
able to take care of repair problems and other personal problems that arise.
These should be very beneficial and I am sure very much appreciated by
all of us.

If you have any questions, please call me.

Shirley
3-5290


Mark,

Can one of the paralegals in your group resume sending out the executed list
of masters on a monthly basis?  I think Susan Flynn had been doing this in
the past.  Considering the rapid pace at which we are executing documents, it
would be very helpful for us if we could resume distribution.  Thanks!


Just a reminder that all time sheets are due by 3:00 ,  Tuesday,  May
1st.
     If you need assistance entering your time, please call Alex or Brandee.

     Thank You!


For the avoidance of doubt, I am resending the Disclosure letter to West LB that was distributed last night [it went to a smaller distribution list]. As previously noted, the Disclosure letter reflects the facts as of today, and must be reviewed in consideration of the circumstances if intended to be used at a later date.


When is convenient for you?

James

 -----Original Message-----
From: 	Ratner, Michael
Sent:	Friday, October 19, 2001 12:13 AM
To:	Centilli, James
Cc:	Geaccone, Tracy
Subject:	RE: Southern Trails Project

I am out of town starting Tuesday afternoon, but am free most of the day Monday and Tuesday am.

Cheers.

 -----Original Message-----
From: 	Centilli, James
Sent:	Thursday, October 18, 2001 11:38 AM
To:	Ratner, Michael
Cc:	Geaccone, Tracy
Subject:	Southern Trails Project

Do you have some time next week to bring you up to date on the project.  Let Tracy and I know your availability for next week.

Thanks,
James


Online Auction benefiting March of Dimes

Wednesday, April 25 and Thursday, April 26
Auction opens promptly at 9:00 a.m. on Wednesday and closes Thursday at 4:00
p.m.

To make your bid, click on:
http://my.home.enron.com  or
http://ecweb05e.enron.net/apps/auction.nsf/

Great items to bid on. 100% of proceeds benefiting March of Dimes. Don't miss
out!


Greg works for Enron North America Wholesale Services (he is Vice President in West Power over hourly trading, middle marketing, and services business).

You got em.

 -----Original Message-----
From: 	Darrin Presto <Darrin_Presto@RSD.EDU>@ENRON [mailto:IMCEANOTES-Darrin+20Presto+20+3CDarrin+5FPresto+40RSD+2EEDU+3E+40ENRON@ENRON.com]
Sent:	Wednesday, June 20, 2001 11:26 AM
To:	Presto, Kevin M.
Subject:	RE: Wolf -Reply

let me know if you got anything.  What is Greg Wolfe's title?
What division of Enron does he work for?

 - ENRONR~1.DOC << File: ENRONR~1.DOC >>


Something EVERY business needs, a Merchant Account!

A Merchant Account is the hardware and software which gives
you the ability to allow customers to pay using any credit
card such as Visa, Master Card, American Express, Discover
etc., and other forms of payment such as e-Checks, Debit
Cards and secure Internet based payment.

We offer several different packages, any of which can be
custom tailored to your needs. Services are currently
provided to the United States only.

To make a purchase or ask questions regarding our services,
please reply to this email with your full name, phone
number (with area code) and if possible a good time to
have us contact you. You are under no obligations. A sales
rep will contact you and will be able to address any of
your questions or needs.

Thank You

*****
To be removed from our mailing list, reply to this email
with the word 'Remove' in the subject line.
*****

tj13stmbzh


EMAZING Home[IMAGE]Edit Your ProfilePrivacy

		Advice and Living - Brain Candy - Business and Money - Comics - Daybreakers -
Entertainment
		Espaol - Games - Good Thoughts - Grapevine - Greetings - Health - Hobbies -
Horoscopes
		Household Hints- Kitchen - Music - Sports - Style - Technology - Travel -
Wireless

		[IMAGE]

		  NO TIME TO READ?  NO PROBLEM!
		Join Audio Book Club and you can enjoy John Grisham's latest on the way to
work, get some good advice from John Gray or Suze Orman, or have Stephen King
read you a bedtime story. Whatever you're looking for, you are sure to find
it at Audio Book Club...and you'll also find one great deal! Join Audio Book
Club today and get 4 audiobooks for only 1 Penny. Click  here for more
details.

		Positive Living Tip of the Day
		Wednesday December 13, 2000

		Assert Yourself At Work

		Do you feel taken advantaged at your job? Are you being handed other people's
work? If so, it's time for you assert yourself and set boundaries to keep
your sanity.

		People who are considered the "saviors" on the job often have a fear of
rejection or are "people pleasers." To keep your sanity in check, you must be
willing to "rock the boat." Quitting is not the answer, because this scenario
will probably occur again in your next job. It is you who is creating
problems for you--not other people.

		Assert yourself by talking to your supervisor about how you feel about the
situation and how you wish to resolve it. (Have a solution in mind BEFORE you
approach your boss.) You'll feel better once you take some control over a
situation. Do not let your emotions keep you from gaining some control in
your work. This is where stress comes from: "The lack of control."

		- CG, Licensed Clinical Professional Counselor

		Email  this tip to a friend - Browse  the Archives

		Have a question for the writer of this tip? Please send it to us by clicking
on the feedback button! This tip is in no way a substitute for professional
advice. If you are dealing with a serious issue, please consult your
physician or other health professional.

		[IMAGE]

		The holidays are here!
		So get your warm wishes and season's greetings out to all with EMAZING's
Greeting Cards! They're fun, FREE, and cover all those merry, bright, and
seasonal occasions.

		Get satellite television in only one step.
		Click here for more information on FREE satellite TV!

		Want Coupons, FREESTUFF, & More? Click Into CoolSavings
		Visit CoolSavings and get coupons and great deals on the latest electronic
gadgets, clothes, toys, jewelry, and more!

		Don't spend Christmas without the Grinch...
		Save up to 40% at Amazon's Dr. Seuss Shop!

		End those last minute gift hassles forever!
		Try Flooz!  The online gift currency you send by email!

		[IMAGE]
		[IMAGE]

		Tip Gift
		POSITIVE LIVING BOOK OF THE DAY
		Gary Arnold: Positive Thoughts for Successful Living

		Tip Gift
		MOVIE OF THE DAY
		Joseph - King of Dreams

		Book
		BOOK  OF THE DAY
		Martin Goldsmith: The Inextinguishable Symphony

		CD
		CD  OF THE DAY
		Creed: Human Clay

		Gift
		 GIFT  OF THE DAY
		RIM 950 Blackberry Internet Edition Wireless Handheld

		DVD
		MOVIE  OF THE DAY (DVD)
		The Cars - Live at Musikladen

		VHS
		MOVIE  OF THE DAY (VHS)
		James Stewart: It's a Wonderful Life

		Quote
		QUOTE  OF THE DAY
		To climb steep hills requires slow pace at first.
		- William Shakespeare

		[IMAGE]
		[IMAGE]

		  The holidays are here!
		So get your warm wishes and season's greetings out to all with EMAZING's
Greeting Cards! They're fun, FREE, and cover all those merry, bright, and
seasonal occasions. Click  here for more details.

		[IMAGE]
		?
		Advertise - Company Info - Feedback - Help - Jobs - Privacy Policy - Terms &
Conditions
		Archives - Edit Your Profile -?Unsubscribe

		EMAZING.com is a service of EMAZING, INC. Copyright 2000. All Rights Reserved.
		EMAZING.com - Whatever you're into, we email it to you. FREE!
[IMAGE]


A position has recently become available on the California desk reporting to
Jeff Richter.  Jeff will be holding an information session on Tuesday, April
24, 2001 at 11:00 am in Mt. Hood for anyone who would like to learn more
about this opportunity.  Interested candidates should let Amy FitzPatrick
know by close of  business on Friday, April 27, 2001.

Day Ahead Scheduling/Analyst

This individual is responsible for the physical and financial integrity of
Day-Ahead scheduled energy transactions.  This includes managing schedules
and preserving Enron,s financial rights with non-performing trading
counterparties.

In addition, the Day Ahead scheduler is responsible for some trading of
energy in the California ISO and bilateral markets both on Enron Online and
through the broker market.  Traders are expected to initiate profitable
trades while maintaining an acceptable amount of risk exposure to the
company.  The individual is expected to know all settlements requirements and
charges related to each type of trade.  The trading role requires interfacing
with internal and external customers and other desks within West Power
Trading.

The Day Ahead scheduler is required to administer terms of Service Desk
contracts, which may include the selling of excess generation and purchasing
energy for customer,s load requirement.  Also, the individual is responsible
for gathering and reporting information on unit outages, transmission line
derations and other information that is useful for all West Desk Trading
activity.

Job Duties
? Confirm purchases and sale of power for Enron Power Marketing
? Create and manage daily position spreadsheet
? Involves some weekends
? Work closely with volume, risk management, and dispute settlement groups
? Assist in the resolution of volume discrepancies within an ISO market
? Interface with service and middle marketing customers to resolve Day-Ahead
questions and concerns
? Assist in testing and implementation of the scheduling applications
? Work closely with information technology and fundamentals group to maintain
and develop Day-Ahead tools and systems
? Learn SQL programming to enhance data analysis

Qualifications
? Bachelors in Finance, Business, Accounting or related field
? 1 to 2 years of previous power industry experience in WSCC is preferred.
? Excellent problem solving and communication skills
? Working knowledge of Excel, Access is required.  Knowledge of Visual Basic
and SQL is preferred.
? Self motivated
? Detail oriented


Okay.  See ya downstairs.


This request has been pending approval for  3 days and you are the
alternate.  Please click
http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000023619&Page=
Approval to review and act upon this request.

Request ID          : 000000000023619
Approver            : stinson.gibner@enron.com
Request Create Date : 3/14/01 11:00:28 AM
Requested For       : tony.hamilton@enron.com
Resource Name       : \\enehou\houston\common\Research - [Read/Write]
Resource Type       : Directory


CALENDAR ENTRY:	APPOINTMENT

Description:
	research meeting re: asian options EB3127

Date:		2/6/2001
Time:		3:00 PM - 4:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Done.  FYI, according to Trey, this does not go through ECC because it is
physical..do you agree? I changed sitara as well.
PL


Start Date: 10/10/01; HourAhead hour: 15;  No ancillary schedules awarded.  Variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001101015.txt

Error retrieving HourAhead price data - process continuing...
---- Ancillary Import Schedule ----
@@@ Ancillary service awarded.
     Details: (Pref Amt:  75.00 / Final Amt:   0.00 / DA Final Amt:   0.00 / HA Amt:   0.00)
     <Price Data Unavailable>
  SC_ID: ECTRT
  TIE_POINT: MALIN_5_RNDMTN
  INTERCHG_ID: 22_EPMI_1010HS
  ENGY_TYPE: CRPLC


Please print and put in binder.

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 01/02/2001 09:08
AM ---------------------------
From: Sheila Tweed@ECT on 12/27/2000 05:50 PM
To: Bob Carter/HOU/ECT@ECT, Barton Clark/HOU/ECT@ECT, Karen E
Jones/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron, Alan Larsen/PDX/ECT@ECT, Dale
Rasmussen/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT
cc: Mark E Haedicke/HOU/ECT@ECT

Subject: TurboPark

Attached are the execution copies of the Turbo Park documents that are
relevant to power plant equipment procurement and development.   I have asked
Finance to provide us with summaries of the relevant provisions since the
120+ page Participation Agreement, which is largely a loan agreement, is very
complex.  I will nevertheless attempt to summarize the "process" of getting
into and out of TurboPark.  In the meantime, please familiarize yourselves
with the documents.


Sorry, the effective date for this new report is 01/07-01/11.
 -----Original Message-----
From: 	Lokay, Michelle
Sent:	Friday, January 11, 2002 8:31 AM
To:	Harris, Steven; Watson, Kimberly; Lindberg, Lorraine; Lohman, TK; Donoho, Lindy; McConnell, Mark; Y'barbo, Paul
Cc:	Robertson, Audrey; Lokay, Michelle
Subject:	FW: California Capacity Report for Week of 12/31-01/04

Transwestern's average deliveries to California were 855 MMBtu/d (79%), with San Juan lateral throughput at 839 MMBtu/d.  Total East deliveries averaged 468 MMBtu/d.

El Paso's average deliveries to California were 1673 MMBtu/d (57%):
- PG&ETop, capacity of 1140 MMBtu/d, deliveries of 343 MMBtu/d (30%)
- SoCalEhr, capacity 1250 MMBtu/d, deliveries of 854 MMBtu/d (68%)
- SoCalTop, capacity 540 MMBtu/d, deliveries of 476 MMBtu/d (88%)

Friday's posted Gas Daily prices:
	SoCal gas, large pkgs	  2.135 (-.215)
	PG&E, large pkgs	  2.09 (-.20)
	TW San Juan		  2.01
	TW Permian		  2.04 (-.23)

Enron basis:	n/a


Attached in WordPerfect, at long last, are the final transaction
documents for Hawaii I.  These documents are marked to show minor, clean
up changes from the documents that were last circulated on the closing
date, November 20.  These changes are largely clean up in nature.
Additionally, the Form of Swap Confirmation and waterfall in the Trust
Agreement were revised to cap the amount of money to be swapped up to
Enron Corp on payment dates other than the Final Distribution Date, such
that any amounts received by the Trust in excess of an amount necessary
to pay interest will be used to pay current yield to the Certificate
Hoder, and the remainder will be retained in the Collection Account.
This change will only have any impact if the asset is generating cash
flow in excess of the amount due as interest on the Notes.

Final closing binders will be distributed later this week.

The documents are identified as follows:

Trust Agreement (266236)
RADA (266238)
Facility Agreement (266253)
  Ex G1 - TRS Confirm (268741)
  Ex G2 - Schedule (Permitted Swap Party) (268744)
  Ex G3 - Schedule (Enron) (268748)
  Ex H - Transfer & Auction Agmt (266256)
  Ex I, Part A - Asset LLC Agmt (266270)
  Ex I, Part B - Transferor LLC Agmt (266276)

Muriel C. McFarling
Andrews & Kurth L.L.P.
1717 Main Street, Suite 3700
Dallas, TX  75201
(214) 659-4461 (direct line)
(214) 659-4784 (direct fax)

 - 266236.wpd
 - 266238.wpd
 - 266253.wpd
 - 266256.wpd
 - 266270.wpd
 - 266276.wpd
 - 268741.wpd
 - 268744.wpd
 - 268748.wpd


Hi Carolyn,

As far as I know, we are still on board for closing on Wednesday.

Kay


It is going out today.

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


Greetings:
Attached please find the agenda for the IEP Board meeting on December 19th.
Please note that this meeting will be held at IEP in the Pharmacy conference
room.  Unfortunately, there is no conference call in capability. Please let
me know if you have any questions.
Thanks!
Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499

 - 12-11 IEP Board Agenda Draft 2.doc


Hello everyone,

I got an email yesterday from Jack confirming our meeting on Monday at 2 p.m.  In light of the recent tragic events and the chaotic state that the commercial airline industry is in, Barry and I will not be traveling to California next week.  We apologize for any inconvenience this may have caused.  We do plan to come out to California to see you guys at a later date.  Once things have settled down and we are able to re-schedule, we will be in touch.

Steve, I am working with Legal to have executable documents sent to you and will keep you posted.  Thanks again for your patience.

Please call me if any of you need anything or have any questions.

Thanks,

Kim Ward


Bill,

It should be done by mid afternoon today.

Dave

 -----Original Message-----
From: 	Williams III, Bill
Sent:	Wednesday, September 12, 2001 10:25 AM
To:	Steiner, David
Subject:	Meridian Phone for Kate Symes
Importance:	High

Dave,
Any word from PGE regarding a phone for Kate?
Anything I can do to help?
Just let me know.
Thanks,
Bill


Lenny,

I believe that you must have done your home work on the the tax credit
issue.  However, it may
make sense to create some kind of reserve in case the tax credit is removed
in the future.

I am glad that you like the way we treat the tax credit, which is built into
the strike price for the
digital option. With the tax credit,  it is most likely the option will be
exercised.

Paulo  Issler is the person who worked on this model initially. He will be
back this Wednesday.
We can talk to him about the standard deviation he put into the model.

Zimin

Lenny Hochschild@ENRON
02/12/2001 08:15 AM
To: Zimin Lu/HOU/ECT@ECT
cc:
Subject: Re: Synfuel option valuation

Zimin,

Thanks for your e-mail.  Sorry for the late reply, I was travelling last week.
I'm under the impression that the with the new administration, there is a
greater chance that Section 29 will be extended beyond 2007 than repealed. If
this happens, we contractually have the right to extend this contract. We
have not valued the chance of this happening, so I don't think we should
value the chance of this not happening.

Anyways, let me speak to my supervisor on this and revert.

In the meantime, I looked over the amendment you made with regard to adding
the second strike of the tax credit and think this is now reflective of the
deal and am happy with it. I still do not understand a few things re:  where
did the St. deviations come from. I believe you said that someone who works
for you put this together but was away last week.

Please revert with his/her name so that I can get together and understand
this.

Thanks.
Lenny

Zimin Lu@ECT
02/06/2001 01:09 PM
To: Lenny Hochschild/NA/Enron@Enron
cc: Eric Groves/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT

Subject: Synfuel option valuation

Lenny,

I think we had a good discussion about the deal valuation.
One thing, I think you are prefectly aware of it, is that the economics
of this deal is driven by the tax credit ($25.03).  The risk on our side
is that if the tax credit is removed, AIG will not deliver the synfuel
 and pay $4.55 to us.

Vince mentioned that Congress might act  quickly enough to eliminate
the tax benefit.   I just want to remind you we should take this risk
into consideration.

Zimin

PS:
I changed the results in sheet1 slightly. The values in column A was shifted
by 0.5.  Use the attached model.


The report named: West VaR <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=36&report_name=West+VaR&category_cd=2&category_name=WEST&toc_hide=1&sTV1=2&TV1Exp=Y&current_efct_date=11/14/2001>, published as of 11/14/2001 is now available for viewing on the website.


The report named: Violation/Notification Memo <http://erv.corp.enron.com/linkFromExcel.asp?report_cd=60&report_name=Violation/Notification+Memo&category_cd=2&category_name=ENRON%20CONSOLIDATED&toc_hide=1&sTV1=2&TV1Exp=Y&current_efct_date=10/25/2001>, published as of 10/25/2001 is now available for viewing on the website.

(Revision: 2)

Publisher's Notes:

PRELIMINARY


Enclosed  you will find the proposed draft Master Firm Purchase/Sale
Agreement together with a draft of the Transaction Agreement to be entered
into between Enron Capital & Trade Resources Corp. and FP&L.  Please review
and give me your comments and changes.


To: maradams@medicine.nodak.edu
cc:
bcc:

Subject: The Joys of Marriage

this is a very funny video.
---------------------- Forwarded by Matthew Lenhart/HOU/ECT on 06/30/2000
11:14 AM ---------------------------

Shirley Elliott <shelliott@dttus.com> on 04/07/2000 09:54:13 AM
To: jjohnson@daewoous.com, kmcgallion@king-ranch.com,
Terri@EDIarchitecture.com, waldron50@yahoo.com, Sablica@compuserve.com,
scody@acplasticsinc.com, sclarkson@tractebelpowerinc.com,
Chad.Landry@enron.com, Matthew.Lenhart@enron.com, matthew.overbeck@ac.com,
JohnWheeler@PZLQS.com, hallieklassen@usa.net, j.cruthis@mail.utexas.edu,
AChang01@coair.com, Liz.Mortenson@chron.com, Allison Damon
<adamon@dttus.com>, Michael Lednicky <mlednicky@dttus.com>, Todd Rimmer
<trimmer@dttus.com>, Chris Strain <cstrain@dttus.com>
cc:

Subject: The Joys of Marriage

> I've got game....'Ole!
>
>
>
> Subject:      FW: The Joys of Marriage
>
>  <<cuddles>>
>

 - FARTINGI.AVI
 - RFC-822.TXT
---------------------------------- Forwarded
----------------------------------
From: mwilkerson@ajilon.com at Internet-USA
Date: 4/7/00 8:50AM -0500
To: Shirley Elliott at DTT.US.HOUSTON
*To: AMorse@EMJMETALS.COM at Internet-USA
*To: hymela@netsolve.net at Internet-USA
*To: bretts@mail.utexas.edu at Internet-USA
*To: brian.sorensen@chase.com at Internet-USA
*To: vmw@ispchannel.com at Internet-USA
*To: Elrhea.stockton@dcicorp.com at Internet-USA
*To: jdryer@kpmg.com at Internet-USA
*To: jwaldman@ers.state.tx.us at Internet-USA
*To: jim_stiffler@dell.com at Internet-USA
*To: keith.hatley@allegiancetelecom.com at Internet-USA
*To: sablica@compuserve.com at Internet-USA
*To: mark_hooper@dell.com at Internet-USA
*To: Michael_Ecklund@hines.com at Internet-USA
*To: r8834c@email.sps.mot.com at Internet-USA
*To: dmehta@uth.tmc.edu at Internet-USA
*To: mdeshotels@rightnowtech.com at Internet-USA
*To: pavri@bplaw.com at Internet-USA
*To: pconnor@us.ibm.com at Internet-USA
*To: RMoser@EMJMETALS.COM at Internet-USA
*To: ryane@tocquigny.com at Internet-USA
*To: Schoelpple@yahoo.com at Internet-USA
*To: swlh@excite.com at Internet-USA
*To: hookem@ev1.net at Internet-USA
*To: wwindom@aol.com at Internet-USA
*To: waldron50@yahoo.com at Internet-USA
Subject: The Joys of Marriage
------------------------------------------------------------------------------
-


The Electric System Operation for the Non-Engineer course is scheduled to
take place this Friday & Saturday, April 27th & 28th from 8:30am to 4:30pm. I
have listed below a brief description of the course overview and location. I
can be reached at 464-3800 if you have any questions.

Location      Meal Schedule
2 World Trade Center      8:15-8:30am - Coffee & Bagels Served
Mezzanine Level  (Oregon Room)   12:00 - 1:00pm - Lunch Served
121 SW Salmon      3:00pm - Drink Refreshments
       Break's - Every 50 min

Overview
The two-day workshop provides you with a comprehensive understanding of
system operations including fossil fuel, hydro and nuclear generation,
transmission and distribution. The course will provide not only technical
information but also economics of operation, system and equipment protection
and safety.

Course Highlights
Generation
Transmission & Overhead
Distribution Systems
Underground Distribution
Switchgear
Voltage Control
Matching Generation

Day one     Day Two

8:15-8:30am     8:15-8:30am
Coffee & Bagels Served   Coffee & Bagels Served

8:30-4:30pm     8:30-4:30pm
Generation     Underground Distribution
Construction and operation     Padmount transformers, underground
        of steam, hydro and gas     cable, conduit and reliability overhead
         turbine generators.     versus underground.

Transmission and Overhead   Swithgear
Distribution Systems     Circuit switches, fuses and cut outs.
Power and distribution transformers.

Wye and Delta overhead    Voltage Control
distribution systems     Voltage control using noload tap changers, load
tap         changers, and voltage regulators.

Power and energy calculations  Matching Generation
       Automotive versus manual matching of
       generation to load, transmission intertie.
      Adjourn


We are pleased to present you with a 2001 Special Stock Option Grant Award.  As a participant in this grant you have the opportunity to share in the ownership of Enron and the potential profit from increases in the value of Enron's common stock.

The 2001 Special Stock Option Grant was made to let you know how valuable you are and to recognize your contributions in making Enron the great company it is today.   Although there are no guarantees as to Enron's future stock performance, we believe that an Enron stock option has tremendous future growth potential.  The value you ultimately receive from your options will depend on the price of Enron stock at the time you exercise your options.

You can access your 2001 Special Stock Option Grant Agreement and the Stock Plan document governing the grant via your eHRonline account on the intranet website at http://ehronline.enron.com.  Unlike stock options granted in the past a copy of your grant agreement will not be mailed to your home address.

Additionally, the following information regarding the 2001 Special Stock Option Grant can be found on the HR website http://hrweb.enron.com.

?	2001 Special Stock Option Grant Highlights
?	2001 Special Stock Option Grant Frequently Asked Questions (FAQs)
?	A "How to Exercise Options" document that contains contact information and PaineWebber forms applicable to your stock options

Please take time to review this material.  It is important to us and to you.  If you have any questions, please contact your Human Resources representative.


frank,

which originator should this go to?

 -----Original Message-----
From: 	Arnold, John
Sent:	Wednesday, November 21, 2001 8:16 AM
To:	Neal, Scott
Subject:	FW: natural gas inquiry

frank,

which originator should this go to?

 -----Original Message-----
From: 	Hochschild, Lenny
Sent:	Monday, November 19, 2001 8:29 AM
To:	Arnold, John
Subject:	FW: natural gas inquiry

Hey John -

You're the only guy I know in Nat Gas. Please forward this to the right person. Thanks.

Lenny

 -----Original Message-----
From: 	Brown, Ron X
Sent:	Tuesday, November 13, 2001 7:22 AM
To:	Hochschild, Lenny
Subject:	natural gas inquiry

Hi Lenny,

Don't know if you are involved in this area or not. I think maybe. Anyway, we have a refined lead contract with Hammond. The local buyer for Pottstown, PA is interested in getting information about natural gas for possible future use from ENRON. If you could contact him or direct him to the person that is in a position to help it would be appreciated.  His name is, Joe Stewartz E-MAIL address is jstewartz@hmndgroup.com
telephone number (610) 327-1400 Fax number (610) 327-1255

Thanking you in advance and hope all is well with you.

Regards,
Ron Brown


---------------------- Forwarded by Kay Mann/Corp/Enron on 12/10/2000 01:51
PM ---------------------------

Kay Mann
12/10/2000 01:51 PM
To: Barbara N Gray/HOU/ECT@ECT, Peggy Banczak/HOU/ECT@ECT
cc: Michelle Cash/HOU/ECT@ECT

Subject: Carlos Sole

Barbara and Peggy,

I understand that we may be looking for someone to provide some assistance on
the Mexico transactions, and that Carlos Sole may be interviewing for the
position.  Carlos and I worked together on multiple transactions in Mexico
while I was with EECC.  In fact, I hired Carlos to work with me because 90%
of what I was doing was in  Mexico, and Carlos has a good background in
transactional work in Mexico. He assumed "first chair" responsibility for all
the Mexico work when I left EECC. Carlos is bilingual in Spanish, and he
conducts business in Spanish quite comfortably.  He is a very bright, a hard
worker, and a lot of fun to work with.  I personally think he would be an
excellent addition to our group.

Please let me know if I can provide any more information about Carlos.

Kay


Vince,

Please find attached a small note I had prepared at Wade's request.  The note
is to be used for a private meeting of the ex-Chairman of MSEB with the
governor of Maharashtra.  In the Indian system, the Governor represents the
Federal government in the state.  Hence any information he gathers is for the
Central Govt.

This informal note is to be passed to him.  The focus as you will see is to
see if we can engage the Central govt. through this route.

Krishna is here and sends his regards.

Regards,
Sandeep.
---------------------- Forwarded by Sandeep Kohli/ENRON_DEVELOPMENT on
01/16/2001 08:55 AM ---------------------------

Sandeep Kohli
01/16/2001 08:51 AM
To: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject: To Basak

Wade,

Please find the note attached for Mr. Basak.  The tariff data is all from the
information sheet put out by Mohan, so you should have no conflicts.

I have tried to give it the appropriate spin.

Let me know if there is something you would like to do differently on this.

Regards,
Sandeep.


This warning is sent automatically to inform you that your mailbox is approaching the maximum size limit.
Your mailbox size is currently 98477 KB.

Mailbox size limits:

	When your mailbox reaches 75000 KB you will receive this message.To check the size of your mailbox:

  Right-click the mailbox (Outlook Today),
  Select Properties and click the Folder Size button.
  This method can be used on individual folders as well.

To make more space available, delete any items that are no longer needed such as Sent Items and Journal entries.

You must empty the Deleted Items folder after deleting items or the space will not be freed.

To turn Journaling off,
 click Tools | Options | Journaling Options and de-select all items.

See client Help for more information.


Rick would like to hold a conference call tomorrow to update everyone on the
meeting he attended w/Ken Lay at the U.S. Treasury Dept.  The call will take
place as follows:

Date:  Wednesday, January 10

Time:  2:00pm (CST)

Number: 1-800-283-1805

Location: EB4701 (for those in Houston)

Please let me know if your schedules will permit you to participate in this
call.

Thanks!

gngr
713-853-7751


Try this feed.

Attached are  EES's Volumetric NYMEX and Basis positions for 6/22/2000.

Thanks,

Kyle


"Calculation of Floating Amount: The Floating Amount payable by [ENA] on a
Payment Date will be calculated for that Payment Date as follows:

    Floating Amount = (Notional Quantity per Calculation Period X Floating
Price) - USD[38,000?]

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


I would like to receive the guide.  My location is 3138c.

Daren


<META HTTP-EQUIV="Content-Type" CONTENT="text/html;charset=iso-8859-1">

<META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso-8859-1">

<title>Energy News Live Daily Wrap-Up</title>

Dear Mike,

I'm Washington Bureau Chief Peter Cook filling in for Jay Rickerts.

In Washington, we'll continue to examine the major energy issues
expected to arise during the New Year.  We'll take a look at what
Congress will do with comprehensive energy and electricity
legislation.  Our Washington bureau will also follow the FERC
and its push for regional transmission organizations and wholesale
competition.   These are some of the issues we'll look at as 2002
begins.

On Wednesday, energy consultant and former Assistant Secretary of
Energy during the Clinton Administration Robert Gee will join us in
the Washington bureau.  He'll give us his take on the U.S.
relationship with OPEC and we'll get his assessment on the start
of retail competition in Texas.  Gee will join us during the noon ET
newscast on Wednesday.

The big switch is coming to Houston - On Wednesday we'll bring
you a report on deregulation starting in Texas on January 1.  The
Houston bureau will have details on how the power grid reacted to the
switch, and get an update from retail electricity providers.

Also from Houston, John S. Herold, Inc. CEO Arthur Smith says
upcoming earnings releases may hold some unwanted surprises.
He'll join us from Houston on Wednesday to discuss his company's
research report and what we can look forward to in 2002.  Catch
these reports from the Houston bureau on Wednesday.

Closing
Prices for Monday, Dec. 31, 2001

			Crude:
			$19.84/bbl
			-$0.57

			Unleaded:
			$0.5725/gallon
			-$0.0157

			Heating Oil:
			$0.5507/gallon
			-$0.0158

			Gas:
			$2.570/mmBtu
			-$0.204

Scheduling Note: We're dark on New Year's Day.  We'll see you
Wednesday at 9:00 a.m. ET.  Thanks for making this a great first year at
EnergyNewsLive - Have a Happy New Year!

Keep in mind things are subject to change at a moment's notice.
Occasionally guests have to reschedule or change time slots.  We'll
continue to do our best to keep you updated on future interviews and
events.

Be sure to watch our newscasts every business day - 9 a.m. to 5
p.m. ET, at the top of each hour.

    Peter Cook,
EnergyNewsLive.com Washington Bureau Chief

      View today's Energy Wrap Video

      Windows Media Player:  56K  |
 100K  |
 300K

      Real Player:  56K  |
 100K  |

300K

      (Requires Windows Media Player or Real
Player)

Experience all that Williams Energy
News Live has to offer!

If you are receiving this letter for the first time and wish to
continue,

subscribe now

To stop receiving this letter,  unsubscribe
now

If you are having trouble receiving this e-mail, please let us know or
call
 (800) WILLIAMS (800-945-5426) weekdays, 7am-7pm CST.

Comments? Suggestions? Let us
know or
call (800) WILLIAMS (800-945-5426) weekdays, 7am-7pm CST.

      Copyright 2001 Williams Energy News Live, LLC. All
Rights Reserved.


Changed as requested.

	Phil DeMoes/ENRON@enronXgate
	05/29/2001 09:03 AM

		 To: Dan J Hyvl/HOU/ECT@ECT
		 cc:
		 Subject: RE: Confidentiality Agreement

Dan,

A couple of changes need to be made:

? Les thought we should add Enron LNG Marketing LLC as a signature party.
Will having just ENA cover us?  If not, do we need to have both ENA and Enron
LNG be named throughout the document?
? typo on Southern on 2nd and 3rd page titles.

 -----Original Message-----
From:  Hyvl, Dan
Sent: Friday, May 25, 2001 3:06 PM
To: amkilpat@southernco.com
Cc: Demoes, Phil; Webber, Les
Subject: Confidentiality Agreement

Phil DeMoes asked me to forward the attached subject agreement to you.

 << File: 2001-050ltr.doc >>


-----Original Message-----
From: 	Torres, Carlos
Sent:	Wednesday, January 30, 2002 7:27 AM
To:	Dorland, Chris
Subject:	FW:  Chris you will absolutely love this!!

 -----Original Message-----
From: 	Jai Hawker <JHawker@petersco.com>@ENRON
Sent:	Wednesday, January 30, 2002 6:58 AM
To:	Richey, Cooper; 'Shauna Javens'; Torres, Carlos; Watt, Ryan
Subject:

Check this out. http://www.eonline.com/Gossip/Fashion/Archive2002/020130.html
Jai Hawker
Peters & Co. Limited
(403) 261-2259


Are you guys interested in seeing Prince on November 30 in Houston?  Tickets
go on sale this Saturday.

Brian T. Hoskins
Enron Broadband Services
713-853-0380 (office)
713-412-3667 (mobile)
713-646-5745 (fax)
Brian_Hoskins@enron.net


PRC Meetings begin on Monday, November 20th.  If you have not already done
so, please go in to PEP at http://pep.corp.enron.com and complete the
requests for feedback on the employees listed below.

If you have any questions, please call the PEP Help Desk at:

Houston:  1-713-853-4777, Option 4
London:  44-207-783-4040, Option 4
E-mail:  perfmgmt@enron.com

Thank you for your participation.

    ELLEDGE, SUSAN
    ESPEY, DARREN
    KINSEY, LISA M
    LENART, KIRK D
    MAHMASSANI, SOUAD
    PEREIRA, SUSAN W
    RING, ANDREA K
    SCHRAB, MARK L
    WHITE, JESSICA
    WILLIAMS, JASON C


Note from Hogan on his views of ERCOT.

Jim

----- Forwarded by James D Steffes/NA/Enron on 02/20/2001 08:29 AM -----

	William Hogan <william_hogan@harvard.edu>
	02/16/2001 10:16 AM

		 To: pat.wood@puc.state.tx.us, judy.walsh@puc.state.tx.us,
brett.perlman@puc.state.tx.us
		 cc: keith.rogas@ouc.state.tx.us
		 Subject: ERCOT Protocols

February 16, 2001
Public Utility Commission of Texas
Sent via email

Commissioners,

         Once again, I thank you for the courtesy of including me in
yesterday's PUCT workshop on the ERCOT protocols.  It has been my
experience that such open discussion of market design issues, with full
pursuit of any problematic features, is essential in achieving a successful
electricity market.  Unfortunately, the subject is complex and the details
matter.  It is not possible to anticipate every problem, but the evidence
shows that ignoring obvious problems in the hope that the rules can be
easily adapted has not been a successful strategy.  This makes what you are
doing all the more important.

         On reflection after the workshop, I am more concerned about the
argument that emerged about the role of the ISO.  In many instances, to
explain away problems of the type identified by Shmuel Oren, an argument
was made that some administrative rule along with discretionary choices of
the ISO would counteract perverse incentives created by the pricing
system.  If this argument were correct, it would seem to place a
substantial burden on the ISO to undo what the pricing incentives have
done.  When faced with such conditions in California and elsewhere, the ISO
developed a more and more intrusive role in what became less and less of a
market.  To make this unhappy practice part of the official design, to the
point that the ISO is expected to ignore the information in schedules and
do what is right, would seem to be especially problematic.  At a minimum,
it would make the ISO responsible for any difficulties that develop,
without giving the ISO the market tools to avoid the problems.

         Commissioner Wood asked at what point how a coordinated spot
market would differ from the ERCOT protocols.  We pursued the most
important feature--eliminating the balanced schedule requirement--but did
not have time to pursue all the other details.  The presentation I handed
out contains a summary of the key features on page 20.  After the workshop,
I received an email with a recent presentation by John Chandley, a
colleague of mine, that addresses the issues of market design with a focus
on California.  As I indicated in Austin, there are important differences
between ERCOT and California, but on the matter of wholesale market design
there is a great deal in common, such as requiring balanced schedules,
relying on congestion zones, applying different treatment for different
kinds of congestion, using ad hoc pricing rules, and so on.  John's summary
of the recommended reforms for California would apply in large part to the
ERCOT protocols.  I have attached a copy of this presentation for your
information.

         I remain both impressed with all that you have accomplished to
date, and worried that fundamental assumptions in the market design will
recreate problems that we have seen elsewhere.  My recommendation to adopt
a coordinated spot market more like PJM won't solve all problems, but it
would go a long way.  Whatever the difficulty now, it will be much harder
to fix these problems later.  Furthermore, the coordinated spot market role
for the ISO is much more robust.  If the simplifying assumptions of the
ERCOT protocols are true (which I doubt), the coordinated spot market will
end up looking much like the zonal model with a few constraints and easy
bilateral trading.  But if the ERCOT assumptions are wrong, the ERCOT
protocols will face serious problems and the coordinated spot market would
be a solution.  Furthermore, we now know from experience that the
coordinated spot market is neither more complicated nor more expensive than
the alternatives.  The sooner you make a commitment in Texas to adopt this
successful market design, the better.

         I offer these further remarks as I did my comments yesterday, in
the hope that you succeed.  I would be happy to discuss these matters
further, as you decide.

Best Regards,

William W. Hogan
79 John F. Kennedy Street
Cambridge, MA 02138

p.s.  I do not have the mailing list for the workshop participants, but I
have sent a copy of this email to Keith Rogas of the PUCT and I assume he
can forward to the participant list.

William W. Hogan
John F. Kennedy School of Government
Harvard University
79 John F. Kennedy Street
Cambridge, MA 02138
617-495-1317 (o)
617-495-1635 (f)
william_hogan@harvard.edu
http://ksgwww.harvard.edu/people/whogan

 - puct0216.doc
 - Infocast - SanDiego Power Crisis 2-13-01.ppt


Governor's greased lighting
Davis criticized for accepting money from power companies
SF Gate News
November 16, 2001

India Dabhol Project Due Diligence To Start Next Week
Dow Jones Interactive
November 16, 2001

Ontario mulls alternative to Hydro deregulation
Dow Jones Interactive
November 16, 2001

Governor's greased lighting
Davis criticized for accepting money from power companies

Sacramento -- After having sworn off campaign contributions from energy companies, Gov. Gray Davis has started taking money from power providers seeking to do business with the state.

The two $25,000 contributions came during a series of fund-raisers the governor held when he made a trip last month to the East Coast to view the damage at the World Trade Center and Pentagon.

The Democratic governor, who has raised more than $30 million for his re- election campaign, has been criticized for taking money from groups that have interests before the administration.

Yesterday, Davis defended the decision to take the money, saying the worst of the energy crisis is behind us.

"My concern was in not taking money from people who were actively selling us power during the difficult early months in 2001," he said of his decision in January to stop taking contributions from utilities and power companies. "To my knowledge neither of those companies are active players in that process. "

But consumer advocate Harvey Rosenfield blasted Davis for accepting the money and said it should be returned.

"If it was dirty money before, it is even dirtier now," said Rosenfield, who heads the Foundation for Taxpayer and Consumer Rights. Davis is mistaken to think that the energy crisis is over, Rosenfield said.

"Tell that to the 20 million Californians who have seen their rates increase an average of 50 percent," he said.

The two companies -- FPL Energy LLC and Caithness Energy LLC -- each gave $25,000 to Davis' campaign fund.

Both contributors have proposed projects pending in California.

Caithness Energy, a New York-based generator, is expected to file plans to build a power plant with the California Energy Commission later this month. The company wants to build a 560-megawatt natural gas fired plant in Riverside County.

And subsidiaries of FPL Energy, a Florida generator that operates power plants across the country, are in negotiations with the state's new Power Authority to construct wind turbines in Southern California. The state would buy energy from the turbines and have the option to own them.

In addition, Caithness and FPL are working together to building another power plant in Riverside County. That project was approved by the state's Energy Commission in March.

Garry South, Davis' political adviser, said the campaign's position had not changed with regard to collecting money from energy interests.

South said that the two companies had not been gouging the state and that the fact they had business pending with the state was irrelevant.

"It is not against the law to take money from a company that does business with the state," he said. South said the contributions had no bearing on any decisions made.

India Dabhol Project Due Diligence To Start Next Week

NEW DELHI -(Dow Jones)- Prospective buyers of the 85% foreign equity in India's 2,184-megawatt Dabhol Power Co. will start due diligence of the project next week, A.K. Doda, executive director of Industrial Development Bank of India (P.IDB), told Dow Jones Newswires Friday.

The possible buyers are Tata Power Co. Ltd. (P.TPW) and BSES Ltd. (P.BSX)

"After the due diligence is completed, price negotiations will start and thereafter, the transfer of shares and transfer of ownership will take place," Doda said.

U.S. energy company Enron Corp. (ENE) has a controlling 65% equity stake in Dabhol and wants to sell it because of payment defaults by the plant's sole customer - the Maharashtra State Electricity Board - and the Indian federal government's failure to honor payment guarantees. In August the U.S. company said it was willing to sell its equity at cost.

Dabhol is India's largest single foreign investment to date. MSEB has 15%, while U.S.-based companies General Electric Co. (GE) and Bechtel (X.BTL) own 10% each in DPC.

"The share price of the shareholding of Enron and its associates in DPC would be decided by the concerned parties, through mutual negotiations. Indian financial institutions propose to continue their efforts to ensure quick resolution of all issues at the earliest," Doda said.

Doda denied local media reports saying that India's state-owned firm National Thermal Power Corp. (P.NTP) was also a potential buyer of the foreign equity in Dabhol.

"So far, I am aware of only two companies - Tata Power and BSES. NTPC haven't sent us any expression of interest yet for the Dabhol project," he said.

Ontario mulls alternative to Hydro deregulation

The planned deregulation of the $35-billion Ontario electricity sector has been thrown in doubt by a radical proposal that would shackle the province's electricity transmission company, preventing it from becoming a significant player in an open North American power market.

The plan, known only to Ontario Premier Mike Harris and a few government and Bay Street insiders, would turn Hydro One into a not-for-profit entity instead of a fully commercial, privatized company. If this happens, Hydro One would lack the flexibility to raise equity capital, make acquisitions and form partnerships in an effort to become one of continent's premier transmission companies -- a goal plainly set out by chief executive officer Eleanor Clitheroe.

David Lindsay, the president and chief executive officer of Ontario SuperBuild Corp., the government's privatization adviser, confirmed that turning Hydro One into a not-for-profit organization, similar to Nav Canada, the civil air navigation service, is under serious consideration.

"We've been asked to evaluate all options for Hydro One's future, including this one," he said yesterday.

He would not provide details, though it is thought that the government wants to make a decision on Hydro One's future ownership structure by the conclusion of the year.

A senior official in the Ontario government, who did not want to be identified, said the proposal "is a step backward to the old days of Ontario Hydro." He was referring to the debt-laden utility that was split into Ontario Power Generation, the electricity generating arm, and Hydro One, whose network of high-voltage transmission lines spans 30,000 kilometres.

The Premier's office would not comment. A spokeswoman for Energy Minister Jim Wilson would say only that "there are a number of options on the table."

Sources on Bay Street and at Queen's Park said the idea of turning Hydro One into a not-for-profit entity is being propelled by Anthony Fell, the chairman of Royal Bank-owned RBC Dominion Securities, Bay Street's largest dealer. If the new Hydro One took this shape, it would raise about $10-billion through the sale of bonds to investors.

The dealers' commission on the sale of the bonds, which would rank among the biggest debt issues in history, would range from $25-million to $40-million, one Bay Street executive said.

Mr. Harris is said to be keen on the concept partly because all the money would go back to the government to help pay down the $21-billion in "stranded debt" racked up by the old Ontario Hydro. The generating and transmission giant's decades-long spending spree on nuclear plants and other assets tore a huge hole in the province's balance sheet.

Hydro One's cash flow, derived from sales to electricity users, would be used to pay the interest on the $10-billion of bonds. Presumably, consumers would face higher electricity charges if Hydro One lacked sufficient cash to pay the interest. If Hydro One were a private company instead, its financial risk would be borne by shareholders, not ratepayers. The United States has embraced deregulation partly because it shifts the financial risk of the electricity market from taxpayers to shareholders.

Executives at RBC Dominion declined to comment on the plan, citing client confidentiality concerns. Mr. Fell first proposed it to the government in the spring.

The government wants to open up the Ontario electricity market, in which buyers and sellers can negotiate prices, by next spring. The market overhaul contemplated turning Ontario Power Generation and Hydro One, both of which are 100 per cent owned by the government, into commercial companies. In Hydro One's case, the leading options were thought to be an outright sale, in which the utility would be bought by another company (presumably a rival utility), or an initial public offering, where the shares would be owned by private investors and traded on the stock exchange.

The third option -- converting Hydro One into a not-for-profit organization -- has come as a surprise. There has been no debate on this option, though rumours of its existence have jolted Bay Street and Hydro One, both of which were working on the assumption that the transmission business would eventually become a commercial enterprise.

Sources said that Hydro One management opposes the not-for-profit structure because it would deny Hydro One the flexibility and discipline of a typical commercial business. The not-for-profit structure would mean it would not have to pay taxes, which raises potential trade issues with the United States. American transmission companies might argue that Hydro One's non-taxable status gives it an unfair competitive advantage.

It would also deny Hydro One management the benefit of potentially lucrative share options.

Rod Taylor, Hydro One's executive vice-president, would not comment on the not-for-profit option being contemplated by the government. He said, however, that the company's strategy hinges on its ability to become a major player in the deregulated North American electricity market. "Our vision of the company is to become a fully commercial entity, and become in the transmission sector what Canadian National is to the rail sector," he said in a phone interview.

Stanley Hartt, the chairman of the Canadian office of Wall Street's Salomon Smith Barney, is among the Bay Street executives who opposes a not-for-profit structure for Hydro One (Salomon has a small role as an adviser to Hydro One's strategic business plan).

In a three-page letter sent this week to the top executives of several large power-using Ontario companies, he said that "this idea is short-sighted and bad for Ontario."

He argued that "the absence of an equity component in the capital structure of the not-for-profit corporation essentially transfers the equity risk to the ratepayers." He also said that, without financial flexibility, Hydro One would lack the resources to invest in "new bottleneck-eliminating connections" that would allow the company to become a significant electricity exporter. "Ontario would lose the prospect of becoming a true hub for North American Energy transmission," he said.

In a recent report on the power industry, TD Newcrest analyst David McCracken wrote, "With its operating expertise and strong balance sheet, Hydro One is well positioned to act as a consolidator of transmission grids in the northern United States, where ownership tends to be fragmented."

He noted that Hydro One is expected to be privatized in the next few years, and he said the utility has "the opportunity to lever strengths from traditional wires businesses into competitive high-growth initiatives."

According to sources familiar with the not-for-profit proposal, Hydro One would be governed in the best interests of all electricity users by stocking the board of directors with appointees from corporations that are heavy power users, such as auto and steel makers and paper companies. Such a structure exists at Nav Canada, with airline executives on the board, and the company has been able to cut the fees it charges customers.

Restructuring Hydro One with debt, rather than equity, is also presented as the most efficient way to capitalize the company.

"The problem with a Canadian National Rail-style IPO is that equity is much more expensive than debt," said one financier familiar with the proposal. "With a debt-based structure, every dollar earned is available to pay interest, while an equity-based structure means you pay federal taxes, provide a return to shareholders and make debt payments."

Dofasco Inc., the big Ontario steel producer that consumes about $100-million of electricity a year, supports the not-for-profit proposal. Gord Forstner, head of communications, said a bond sale would reduce Ontario Hydro's stranded debt by $10-billion immediately, paving the way for lower electricity charges. Currently, a special levy on all electricity bills is being used to whittle down the debt. The charge costs Dofasco alone about $15-million a year.

"We want to see the stranded debt paid down first," Mr. Forstner said. "Until that happens, we don't favour Hydro One going to the expense of expanding outside of Ontario's boundaries." Hydro One at a glance

Ontario's electricity transmission system split off from the former Ontario Hydro in May, 2000. It is the largest power distribution network in Canada and serves 1.2 million people.

Revenues: $3-billion in 2000, $2.4-billion through first nine months of 2001.

Total assets: $10-billion, including 141,000 kilometres of wire, 1,200 stations and sub-stations and connection facilities to New York, Michigan, Manitoba and Quebec.

EBITDA (earnings before interest, tax, depreciation and amortization): $1.3-billion in 2000.

Net earnings: $378-million in 2000, $351-million through first nine months of 2001.

Common equity: $3.7-billion (owned by the Province of Ontario)

Employees: 4,500

Source: Hydro One


Start Date: 1/8/02; HourAhead hour: 3;  No ancillary schedules awarded.  Variances detected.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002010803.txt

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 3 / Preferred: 119.37 / Final: 119.34)
  TRANS_TYPE: FINAL
  LOAD_ID: SDG1
  MKT_TYPE: 2
  TRANS_DATE: 1/8/02
  SC_ID: ENRJ


Bill,

I've made a couple of changes related to ENA having two contracts that we want to market via this method.  Please check my comments and look to see if any of the other language needs to be changed for the additional agreement.  The letter looks great to me.  Thanks for all of your help on this.  Once we hear back from you, we will tender to ENA for their execution so we can proceed forward in selling this capacity.

Thanks, Kim.

 -----Original Message-----
From: 	Rapp, Bill
Sent:	Friday, December 28, 2001 9:34 AM
To:	Watson, Kimberly; Lokay, Michelle
Subject:	ENA Capacity Release

Kim and Michelle,

	Attached is a revised version of the capacity release letter agreement, which is red-lined toshow changes from the prior draft.

 << File: CapRelA.doc >>