Charity gets a time at bat from Enron
Houston Chronicle, 10/03/01
States protest federal involvement in electricity competition, deregulation
Associated Press Newswires, 10/03/01
USA: Enron stock extends recovery with 10 pct jump.
Reuters English News Service, 10/03/01
Nigeria LNG Signs MOUs With Enron, Iberdrola
Dow Jones Energy Service, 10/03/01
Supreme Court Hears Case With High Import For Pwr Mkts
Dow Jones Energy Service, 10/03/01
INDIA: Enron's Indian unit again defaults on interest dues.
Reuters English News Service, 10/03/01
USA: Energy merchant stocks up after Calif. settlement.
Reuters English News Service, 10/03/01
BG India Hopes To Be Operator Of Enron Fields By Oct 31
Dow Jones Energy Service, 10/03/01
Enron sells Indian oil and gas assets to British operator
Associated Press Newswires, 10/03/01
Enron Confirms India Oil, Gas Assets Sale To BG Grp
Dow Jones Energy Service, 10/03/01
BG Group to Buy Enron India Assets for $388 Million (Update4)
Bloomberg, 10/03/01

U.S. Supreme Court Questions Reach of Federal Energy Regulators
Bloomberg, 10/03/01

Enron to Sell Oil, Gas Fields in India to BG Group (Update1)
Bloomberg, 10/03/01

Oct. 3, 2001
Houston Chronicle
Charity gets a time at bat from Enron
By GREG HASSELL
Copyright 2001 Houston Chronicle
When Houstonians gather at Enron Field this week, Barry Bonds' attempt to rack up 71 homers in a single season won't be the only unprecedented feat on display.
Just above the scoreboard that will record any homers Bonds might send screaming out of the ballyard is a sign bearing the United Way logo. It looks ordinary enough, like the dozens of other ads that dot the stadium.
But the last time the Astros played at home, the sign bore Enron Corp. logo. Late last week Enron donated the sign to United Way, which will get the space through the 2002 season. It's the first time a naming rights sponsor of a modern U.S. stadium has donated a major sign to charity.
According to advertisers familiar with rates at Enron Field, the sign is worth about $500,000 a year. Since Enron maintains a small logo on the sign, the actual value of the gift would be less.
"This tells the world that, as powerful as Enron is, they put a lot of stock in what we do," said Jackie Martin, president of the United Way of the Texas Gulf Coast. "That's beyond the power of dollars. It's priceless."
Enron decided to make the gift because it had two signs in the park, including one that reads ENRON FIELD in huge blue letters.
"I looked up there and thought, `This might be a little bit of overkill,' " said Mark Palmer, vice president of Enron's corporate communications. "We could really help one of our community partners if we shared that space up there. For all the great work the United Way does, it makes sense to partner with them."
Name gets a lot of play
Since Enron agreed to pay $100 million for the naming rights, it has reaped a public-relations bonanza.
"When people say they are going to a game here, they say, `I'm going to Enron,' " Palmer said. "That is tremendous for our company."
Because of the stadium's odd dimensions and the tremendous number of home runs hit there, the name Enron Field is famous in sporting circles.
"I was in London, and I overheard a television announcer say, `Big news at Enron!' "Palmer said. "My head just about snapped off, I turned around so fast. Then I realized it was CNN Sports, and they were talking about the stadium."
While Enron's experience shows naming rights deals can give a mighty boost to a corporation's name, the wider world of naming rights deals is embroiled in turmoil these days.
A number of companies that shelled out millions for naming rights are in financial trouble. That includes PSINet Stadium in Baltimore, named for a dot-com turned dot-bomb. It includes Pro Player Stadium in Miami, named for a troubled maker of sports apparel.
The St. Louis Rams play in a dome named after TWA, but the financially trouble airline has been bought out and the dome's name is for sale.
In past naming-rights deals, the heaviest buyers have been high-tech outfits and airlines. Both of those industries are in the toilet now, and it seems unlikely we'll see any big deals coming from those quarters anytime soon.
"It is a period of uncertainty," said Todd Gruen, managing editor of a publication called Naming Rights Deals. "Once we get a handle on where the economy is going, the naming rights industry can find its place as well."
Some deals go sour
But the situation is more serious than merely dollars and cents. In some cities, there has been a backlash against selling names to the highest bidder.
The mayor of Chicago threatened to scuttle a deal to refurbish Soldier Field unless the Bears relented on their demands for naming-rights revenues. The team backed down last week.
In Denver, the Denver Post is refusing to call the new stadium there Invesco Field at Mile High. Instead, it will call it Mile High Stadium -- the name of the legendary abandoned stadium next door. Denver's mayor, who lobbied hard against selling the name to a corporation, applauded the snub.
Does this mean the golden days of naming rights are over? Will the Rockets find a dry well when they go courtin' for a naming-rights partner for their new downtown arena?
"We've seen a leveling off of prices and we'll continue to see a leveling off for the next few years," said Dean Bonham, president of the Bonham Group, which negotiates naming rights deals. "But contrary to some reports, the sky isn't falling. These deals will continue to be sought by corporations, just not with the sense of urgency we've seen in the past."

States protest federal involvement in electricity competition, deregulation
By H. JOSEF HEBERT
Associated Press Writer

10/03/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - Several states told the Supreme Court the government went too far when it ordered electric utilities to open their power lines to competitors and spurred a movement toward deregulation.
But one of the country's largest power marketers, Enron, argued before the court Wednesday that the Federal Energy Regulatory Commission should have gone even further to help companies like Enron get equal access to power grids.
During the hourlong hearing, the justices gave little indication of how they will decide on a case that could dramatically affect management of the nation's power grids and the future of electricity competition.
At one point, Justice Stephen Breyer said FERC, which regulates wholesale power markets and interstate transmission of power, was being "whipsawed" from both directions.
The commission's 1996 decision, which for the first time required traditional utilities to open their transmission lines to competing power merchants, triggered a movement toward wholesale electricity competition and led numerous states to end monopolies in retail power markets.
But utility regulators in nine states, led by New York, filed suit arguing that the FERC order amounts to a federal agency attempting to regulate retail sales, usurping a traditional state function.
At the same time, Enron's lawsuit charged that FERC violated federal law because it did not require access to transmission lines when utilities continued to keep transmission and retail sales as one operation - as remains the case in many states that have yet to allow competition.
In June 2000, an appellate court essentially upheld FERC's regulation, prompting appeals from both Enron and the state regulators.
"It's an example of where an agency has overstepped its bounds," Lawrence Malone, general counsel for the New York State Public Service Commission, told the justices at Wednesday's hearing. The other states party to the suit are Florida, Idaho, New Jersey, North Carolina, Virginia, Washington, Vermont and Wyoming.
Malone, appearing on behalf of all nine states, argued that FERC's order pre-empts state authority to regulate retail sales and set rates.
"This case isn't about rates," countered Louis Cohen, representing Enron Power Marketing Inc. before the court. "What we're concerned about is getting onto the (grid) system."
Cohen said that under the current access rules a dominant utility in a state that has not moved to competition may still "hog" the lines and keep Enron and similar marketers from moving power across a region.
The Justice Department, representing FERC before the court, argued that the commission only sought to strike a balance between the need to give competitors equal access to power lines and leaving retail market issues to the states.
Edwin Kneedler, deputy solicitor general, told the court that FERC, in his view, could have gone further, as Enron has argued. But, he said, to do so it would first have had to order all utilities to separate retail sales and transmission, something it chose to leave to the states.
The case, which is not expected to be decided until sometime next year, comes at a time of growing concern about electricity competition and power grid reliability in light of recent power problems in California.
About half of the states have taken some steps toward retail electricity competition.
Many power industry experts as well as the FERC commissioners have emphasized that a truly competitive electricity market will be difficult to achieve without smooth and efficient flow of electricity across large regions, if not nationally. And that, argue companies like Enron who want to compete with traditional utilities, will require more open access to transmission.
In an attempt to smooth the flow of power, FERC has embarked on a campaign to establish four large, regional transmission organizations to manage the national power grid. A court decision rolling back some of FERC's authority over open access to transmission lines could affect that effort.
Uncertainty over how far the federal government will be allowed to go in requiring transmission access also could affect state decisions on whether to embrace electricity competition, according to some industry experts.
---
On the Net:
Federal Energy Regulatory Commission: http://www.ferc.fed.us/
Enron: http://www.enron.com/corp/

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

USA: Enron stock extends recovery with 10 pct jump.

10/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, Oct 3 (Reuters) - Shares of Houston-based energy marketing and trading giant Enron Corp. extended their recent recovery from 3-year lows with a 10 percent gain on Wednesday amid improving investor sentiment toward companies that operate in U.S. wholesale natural gas and electricity markets.
In afternoon trading Enron's stock was up $3.17 at $33.78, in a fifth straight day of gains since closing just above $25 on Sept. 26, its lowest close since October 1998.
However, Enron's stock still shows a loss for the year-to-date of some 59 percent, compared with a decline of about 19 percent for the S&P 500 index, and Enron is trading well below highs of around $90 set in August and September of last year.
"Enron was really beaten up because of several issues and was really oversold, so that's why it continues to recover," said Banc of America Securities analyst William Maze.
The Houston-based company's stock fell sharply in August after the surprise resignation of Jeff Skilling as chief executive officer but the stock had already come under pressure as a result of a disappointing performance by its fledgling broadband business and a stalled power plant project in India.
Maze said Enron was currently benefiting from a realization among investors that wholesale natural gas and power companies would probably suffer less than other sectors if the United States enters a protracted economic downturn.
"It's one of the few sectors that offers some visibility to (earnings) numbers both this year and next year, so there is quite a bit of interest coming back into the group," he said.
Maze said Enron and its peers also got a boost on Wednesday from Edison International unit Southern California Edison's plan to pay its creditors and avoid bankruptcy, even though Enron is not one of SoCal Ed's biggest creditors.
Enron and its peers should also benefit from new Federal Energy Regulatory Commission Pat Wood's commitment to opening up the national power transmission grid, Maze said, while Enron's sale of its Indian oil and gas assets, announced on Wednesday, underscores its commitment to its "asset-light" doctrine.

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

Nigeria LNG Signs MOUs With Enron, Iberdrola

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LAGOS -(Dow Jones)- Nigeria LNG Ltd has signed memoranda of understanding with Enron Corp. and Spanish power company Iberdrola for the sale of LNG volumes from the 4th and 5th production units of its expansion program, NLNG said in a statement released here Wednesday.
Nigeria LNG plans to commence production from the two new units in 2005. However, it needs firm sales agreements accounting for all the production from those units before it will finalize the invesment.
The latest deals bring to 6.5 BCM/year the LNG volume from units four and five already committed. Each of the new production units will have capacity of 4 BCM/year.
Nigeria LNG and Enron had earlier signed an MOU for 1 billion cubic meters per year for the expansion program, also known as NLNG Plus volumes. The second agreement raises Enron's share of NLNG Plus volumes from 1 BCM/year to 4 BCM/year.
Spanish and North American receiving facilities are the primary destinations for LNG shipments to Enron under the new agreement, the statement said.
Iberdrola, which signed an MOU for 1.5 BCM/Year, will receive its shipments at the Spanish receiving terminal of Huelva.
Jean-Francois Capelle, General Manager, Commercial, of Nigeria LNG Limited, said MOUs will soon be signed for the remaining volumes of LNG from these units, and that work had already started on sales and purchase agreements to firm up these contracts. These may be signed by the last quarter of the year.
NLNG commenced commercial operation in October 1999 with its two-unit, 5.9 -million tons per annum Base Project. A third unit of similar design and capacity as the Base Project unit is currently under construction and is scheduled for completion in late 2002.
On completion of the NLNG Plus Project, NLNG will have an overall production capacity of 17 million tons per annum of LNG and 2 million tons per annum of LPG.
NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell (25.6%), TotalFinaElf (15%) and Agip (10.4%).
-By Vincent Nwanma; +234-1-585-0849/775-6185; vinwanma@beta.linkserve.com

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

Supreme Court Hears Case With High Import For Pwr Mkts
By Bryan Lee
Of DOW JONES NEWSWIRES

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- The U.S. Supreme Court Wednesday wrestled with how to interpret the 1935 Federal Power Act in the wake of competitive changes that have swept the $220 billion U.S. electricity sector over the past decade.
The justices heard oral arguments in competing challenges to rules the U.S. Federal Energy Regulatory Commission adopted in 1996 requiring utilities to open their transmission lines to competing wholesale power providers.
The case has great ramifications for congressional debate of electric industry restructuring legislation and FERC's ongoing efforts to promote competition as a surrogate for regulation.
"If you pull the rug out from under (FERC's rulemaking), the implications are enormous," said Vicky Bailey, the U.S. Energy Department's assistant secretary for policy and international affairs. Bailey was a FERC commissioner in 1996 when the rules were imposed.
State regulators argued the commission preempted their authority to regulate power sales at retail, while Enron Power Marketing Inc. (ENE), the nation's largest competitive power provider, maintained FERC failed to assert all the jurisdiction it could under the 66-year-old statute.
FERC's open-access mandate, called Order No. 888, paved the way for competitive wholesale power markets. It also set the stage for a 1999 rulemaking carrying that mandate even further to require utilities to turn control of their power lines over to independent management by regional transmission organizations, or RTOs.
But that sweeping effort to reshape the nation's interconnected power grid under control of a handful of RTOs would be hampered if the court agrees with the arguments of state utility regulators that FERC's rules supplanted authority Congress intended the states to have.
If the court agrees with Enron, FERC would have a much freer hand in carrying out its RTO rulemaking.
At issue is the arcane concept of "bundled" versus "unbundled" retail electricity sales. Congress in 1935 never envisioned that half the states today would have moved to open retail electricity service to competition among utilities and alternative providers.
Until the onset of retail power competition, states regulated wholesale power transmission services "bundled" into the retail transaction as an intrastate transaction. FERC regulated interstate transmission services in support of wholesale sales.
But FERC in Order No. 888 determined that once a state opens its power market to retail competition, then wholesale transmission services in support of the retail sales have been "unbundled," and regulation would shift from the states to the federal government.
FERC's policy call usurped state control of retail power sales that Congress intended in 1935, Lawrence G. Malone, general counsel for the New York Public Utility Commission, told the court.
FERC's assertion of authority over wholesale transmission services in support of unbundled retail sales should be struck down in order to preserve the "bright line" between retail and wholesale power sales Congress established in 1935, he said.
"We now have two hands on the retail wheel and it doesn't work," Malone said, accusing FERC of "overreaching" and "rewriting the law."
But Enron argued that FERC should have asserted authority over all wholesale transmission services, whether retail sales are bundled or unbundled. Allowing states to regulate wholesale transmission associated with retail sales violates the interstate commerce clause and disrupts sales in wholesale power markets, said Louis R. Cohen, the attorney representing Enron.
"Utilities hog these (transmission) facilities for their own use and keep us off the road," Cohen said, employing a highway analogy.
Deputy Solicitor General Edwin S. Kneedler argued on behalf of FERC for the court to uphold Order No. 888, which a lower court last year found was a permissible interpretation of FERC's authority under the law.
In its June 2000 ruling, the U.S. Court of Appeals for the District of Columbia Circuit said FERC's open-access transmission mandate represented a reasonable assumption of authority to remedy "a persistent barrier to the development of a competitive wholesale power sale market."
Nevertheless, Kneedler supported Enron's position by stating that FERC has jurisdiction over transmission in bundled retail rates. Any electricity transmitted on the power grid "is necessarily in interstate commerce," Kneedler said.
The justices actively questioned the three attorneys about the language in the Federal Power Act addressing state and federal jurisdiction over electricity sales.
The questioning seemed designed to determine if FERC erred, as Enron argued, in not asserting authority over all transmission services, or if the commission properly exercised discretion in asserting its authority, as the lower court ruled.
But the questioning didn't provide a clear indication as to how the court will ultimately decide the case.
Justice Antonin Scalia, renowned as being a strict constructionist of statutory language, appeared to argue both sides on the case, depending upon whether he was challenging arguments by Malone for New York or Cohen for Enron.
Justice Sandra Day O'Connor's statements appeared to support Enron's position.
"In 1935, we didn't have these interstate grids," O'Connor said. "Today, with a multi-state grid, it's hard to know how any transmission across the grid is anything but interstate commerce," she said.
At another point, O'Connor asked: "What difference does it make if transmission is bundled or unbundled?"
Lynne Church, president of the Electric Power Supply Association, which represents competitive power providers and supported Enron's case before the court, was optimistic that the court will rule that FERC's authority is expansive.
"I think Enron won," Church said.
"I'm cautiously optimistic we'll get a good result," said Cohen, Enron's attorney.
But Charles Gray, executive director of the National Association of Regulatory Utility Commissioners, called the arguments and the probing by the justices "inconclusive."
No matter which way the court rules, Congress will need to pass electricity legislation to address the divide between state and federal jurisdiction, said Gray, who represents state utility regulators.
"I've learned the hard way not to make judgments based on oral arguments," said Elizabeth Moler, who was FERC's chairman in 1996.
Moler, who now heads the Washington office of Exelon Corp. (EXC), called for the court to side with Enron's argument.
"The world has changed since Order No. 888," Moler said, calling the commission's 1996 jurisdictional call a "fair reading" of the law at the time. "If I was there today, I'd go much further," she said.
-By Bryan Lee, Dow Jones Newswires; 202 862-6647; bryan.lee@dowjones.com

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

INDIA: Enron's Indian unit again defaults on interest dues.

10/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, Oct 3 (Reuters) - Dabhol Power Co, the troubled Indian unit of U.S. energy giant Enron Corp , said on Wednesday it has defaulted on interest payments totalling $24 million, the company's second interest default in the past two weeks.
"We have not made interest payments due on September 30 to Indian lenders," a Dabhol spokesman told Reuters.
He said the lenders belonged to a consortium of Indian banks and financial institutions led by the country's largest term lender, Industrial Development Bank of India .
Enron's spokesman told Reuters on September 21 that Dabhol defaulted on interest owed to international lenders, but had not specified the amount.
Some of these payments were also to be made by September 30.
Dabhol's power plant on the western coast of India, built at a cost of $2.9 billion, has been shut since June after its sole buyer, a loss-making local utility, stopped purchasing power and defaulted on payments.
In addition to shutting down the 740 MW first phase of the plant, Dabhol ended work on the almost-completed second phase, which would have increased the capacity to 2,184 MW.
The utility, the state-owned Maharashtra State Electricity Board, had contracted to buy all the plant's output, but later said it didn't need all the power, which it said was too expensive.
Dabhol and the utility are now locked in a legal dispute.
Dabhol has not been earning any revenue since June, and last month requested an unspecified amount from lenders to meet its monthly interest payments.
The Dabhol spokesman said the lenders have still not responded to its request for assistance.
Almost 70 percent of the power plant was funded by debt. Indian lenders, including banks and financial institutions, have lent about $1.4 billion and foreign lenders have contributed the rest.
Of the 30 percent equity, Enron owns 65 percent, the state utility owns 15 percent, with General Electric and Bechtel owning 10 percent each.

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

USA: Energy merchant stocks up after Calif. settlement.

10/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 3 (Reuters) - Shares of energy merchant firms rose sharply Wednesday in early trade after California's second largest utility reached a deal which will allow it to pay off the debt incurred to them for buying power.
Late Tuesday, Southern California Edison, a unit of Edison International , said it reached a deal with state utility regulators that will enable it to develop a plan to pay off creditors. SCE amassed $3.9 billion in debt over the past year buying power, mostly from merchant energy companies.
"I would imagine they are going up on the probability they are going to get paid," said Raymond Moore, an analyst with with Weatherly Securities.
Gainers included Mirant Corp. , which was up 8.63 percent or $1.96 to $24.66; Enron Corp. , up 6.11 percent or $1.87 to $32.48; and Calpine Corp. , up 8.69 percent or $2.15 to $26.90.
The fact that energy merchants are trading at historical lows relative to the Standard & Poor's 500 increase their attractiveness to investors, wrote Salomon Smith Barney analyst Raymond Niles in a research note.
Niles recommends the entire group, which also includes Dynegy Inc. , Duke Energy Corp. , El Paso Corp. , Williams Cos. Inc. and Aquila Inc. . With the exception of Duke, the group was up between 1 and 4 percent.
. (C) Reuters Limited 2001.

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

BG India Hopes To Be Operator Of Enron Fields By Oct 31

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- British Gas India Pvt. Ltd., a wholly-owned subsidiary of the U.K.-based oil and natural gas company BG Group PLC (BRG), hopes to become the operator of the Pannna-Mukta oil and gas field and the Tapti gas field located offshore India's western coast by Oct. 31, BG India's Chief Executive Nigel Shaw said Wednesday.
As reported, BG Group earlier Wednesday announced a conditional acquisition of U.S. energy company Enron Corp.'s (ENE) 30% stake in the Tapti and Panna-Mukta fields subject to getting the operatorship of the fields. The acquistion, worth $388 million, will be for Enron Oil and Gas India Ltd.'s entire offshore interests.
"It's clear. If we don't get the operatorship, we will walk away. We are currently in talks with both ONGC and Reliance, the two other partners in Panna-Mukta and Tapti fields," Shaw told reporters at a press conference in New Delhi.
India's state-owned Oil and Natural Gas Corp. (P.ONG) holds a 40% stake in Panna-Mukta and Tapti fields while Reliance Industries Ltd. (P.REL) owns the remaining 30%.
Shaw said the commercially recoverable reserves from Panna-Mukta and Tapti fields have been estimated at 783 billion cubic feet of natural gas and 43 million barrels of crude oil.
The natural gas from Panna-Mukta and Tapti fields will continue to be sold to the state-owned Gas Authority of India Ltd. (P.GAI) if BG becomes the operator.
"The contract with Gas Authority of India will remain for the life of the fields. There won't be any change in the original sales contract," Shaw said.
He added that BG India will try to double the current output from Panna-Mukta and Tapti fields by 2004.
"That will be the best case scenario depending upon the overall domestic demand for oil and gas," Shaw said.
Production from Panna-Mukta and Tapti fields totalled an average of 70 million standard cubic feet of natural gas a day and 8,200 barrels of crude a day in the year to March 31, Shaw added.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dowjones.com

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

Enron sells Indian oil and gas assets to British operator

10/03/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SINGAPORE (AP) - Enron Oil and Gas India Ltd. said Wednesday that it has sold its Indian oil and gas assets to the United Kingdom's BG Group PLC for dlrs 388 million.
Enron Oil and Gas India - a subsidiary of U.S. energy giant Enron Corp. - held a 30 percent stake in the Tapti gas field and Panna-Mukta oil and gas field.
It also held a 62.64 percent interest in a major gas and oil exploration license.
"The sale is subject to completion of arrangement with joint-venture partners," an Enron spokesman said.
He said BG is making arrangements with Enron "to continue as operator."
State-owned Oil & Natural Gas Corp. holds a 40 percent stake in the Panna-Mukta and Tapti fields, while the other 30 percent is owned by Reliance Industries Ltd.
Energy analysts have said Enron Oil and Gas India is likely to have undersold its oil and gas assets.
Earlier this year, the state reportedly bid dlrs 400 million for Enron's Indian oil and gas assets, only to have the bid rejected. Analysts said Enron was unlikely to settle for anything less than dlrs 600 million for its 30 percent stake in the venture.
Analysts say the sale may herald Enron Corp.'s departure from the controversial Dabhol Power Project - India's largest private power plant - of which Enron Corp. has a 65 percent controlling stake.
The dlrs 3 billion Dabhol project has been mired in financial disputes when its main customer, the Maharashtra State Electricity Board, failed to pay several of its bills.
"This is unrelated to Dabhol," the spokesman said, however. "We had expressed an interest (in selling the oil and gas assets) before the Dabhol problems had begun."
(dj/hp-ep)

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

Enron Confirms India Oil, Gas Assets Sale To BG Grp

10/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

SINGAPORE -(Dow Jones)- Enron Oil and Gas India Ltd., a subsidiary of U.S. energy major Enron Corp. (ENE), confirmed Wednesday that it has sold its Indian oil and gas assets to the U.K.'s BG Group PLC (BRG) for US$388 million.
EOGIL held a total 30% stake in the Tapti gas field and Panna-Mukta oil and gas field and a 62.64% interest in the CB-OS/1 exploration license.
"The sale is subject to completion of arrangement with joint-venture partners," an EOGIL spokesman said. "BG is making arrangements with EOGIL to continue as operator."
State-owned Oil & Natural Gas Corp. (P.ONG) holds a 40% stake in the Panna-Mukta and Tapti fields, while the other 30% is owned by Reliance Industries Ltd. (P.REL).
Energy analysts have said EOGIL is likely to have undersold its oil and gas assets.
Earlier this year, ONGC reportedly bid US$400 million for Enron's Indian oil and gas assets, only to have its bid rejected. Analysts said Enron was unlikely to settle for anything less than US$600 million for its 30% stake in the venture.
The EOGIL spokesman declined to comment on the issue, saying the size of bids reported in the press were "speculative."
The spokesman also declined to comment on reports that ONGC was positioning itself to be operator.
Analysts have said EOGIL's offloading of its oil and gas assets in India may herald Enron Corp.'s departure from the controversial Dabhol Power Project - India's largest private power plant - of which Enron Corp. has a 65% controlling stake.
The US$3 billion Dabhol project has been mired in financial disputes when its main customer, the Maharashtra State Electricity Board, failed to pay several of its bills.
"This is unrelated to Dabhol," the spokesman said. "We had expressed an interest (in selling the oil and gas assets) before the Dabhol problems had begun."
-By Sri Jegarajah, Dow Jones Newswires; 65-415-4066; sri.jegarajah@dowjones.com -0- 03/10/01 09-20G

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

BG Group to Buy Enron India Assets for $388 Million (Update4)
2001-10-03 12:30 (New York)

BG Group to Buy Enron India Assets for $388 Million (Update4)

     (Adds BG closing share price in the fifth paragraph, Enron
shares in the sixth, BG comment in the 15th.)

     London, Oct. 3 (Bloomberg) -- BG Group Plc, the onetime U.K.
natural gas monopoly, agreed to buy Enron Corp.'s oil and natural
gas fields in India for $388 million, its biggest purchase to date
in a bid to fill the nation's growing energy shortage.

     India's gas production fell 11 percent to 1999 from 1997 as
Oil & Natural Gas Corp., the state explorer, made no significant
discoveries in 15 years. Insufficient supplies of gas have hurt
growth in the country's fertilizer and chemicals industries and
hampered upgrading of its power plants, still mostly coal-fed.

     Domestic bureaucracy has already thwarted efforts in India by
Electricite de France and Cogetrix Energy Inc., which have pulled
out, while Enron is locked in a price dispute with authorities.
The government is the sole buyer of gas and power from producers
and the sole seller to distributors.

     ``BG has gotten assets in an undersupplied market for a
reasonable price,'' said Roger Richards, who helps manage $12
billion at Prudential Bache in London. ``True, there's general
concern about the state involvement. But if you get your foot in
the door, stay and work hard, you'll enjoy returns.''

     BG shares fell 2.5p, or 1 percent, to 261p in London. BG
shares over the past year have risen 1.1 percent, while the 11-
member FT-SE All-Share Oil & Gas Index has fallen 9.6 percent.

     Enron shares rose as much as $2.84, or 9.3 percent, to $33.45
in New York.

     The government expects a gas deficit to triple in the next
six years unless new wells are drilled or existing fields expand
sales. BG, with 70 percent of its reserves as gas, is pushing to
sell the fuel in markets from the U.S. to Asia. At Enron, the sale
is part of a drive to end pumping oil and gas and focus on energy
trading.

                       Core Area

     ``The deal crystallizes India as a new core area of
operations,'' said David McManus, a BG executive vice president,
in an interview. ``India's gas demand is expected to grow by half
over the next 10 years, while its gas production is falling. We
aim to bridge this huge gap in some part.''

     The operations include a 30 percent stake in the Tapti gas
field and the Panna/Mukhta oil and gas field, as well as 63
percent of an untapped deposit on the west coast of India. The
assets hold more than 170 million barrels of oil and gas, BG said.

     ``They're supplementing their existing gas business in India
with new reserves,'' said Anthony Eccles, an analyst at Dresdner
Kleinwort Wasserstein in London. ``That justifies the price they
agreed to pay.''

     BG controls Gujarat Gas Co., which supplies gas to customers
in the Gujarat state, and owns half of Mahanagar Gas Ltd., which
serves Mumbai. It also is building a liquefied natural gas plant
in Gujarat.

     The Gas Authority of India is the monopoly buyer of gas from
the fields and the seller of the fuel to BG's ventures. While the
fields' existing output has been fully contracted to the Gas
Authority, the company will negotiate a right to bypass it with
additional production, McManus said.

                        Commitment

    ``They must be committed to getting additional gas out of the
ground'' to make the investment pay off, said Iain Reid, an
analyst at UBS Warburg. ``This is the rationale for the deal.''

     The acquisition is conditional on whether BG will be approved
as the fields' operator, the company said.

     BG will invest ``hundreds of millions'' of dollars to double
production in the Tapti field by 2004 if the other two partners in
the venture, Reliance Industries Ltd. and ONGC Ltd., contribute as
well, said Nigel Shaw, chief executive officer of BG India Pvt.
     ``BG is ready to play its part,'' he said.

     Lehman Brothers advised BG on the acquisition, McManus said.
     The agreement ``represents a significant step for Enron in
selling assets not integrated into our wholesale or retail energy
businesses,'' Enron president for exploration and production Jeff
Sherrick said in a statement.

     The assets being sold to BG exclude Enron's Dabhol Power Co.
project in India, a $3 billion venture entangled in a nine-month
payment dispute with its state-run buyer. Enron has said it wants
to sell its 65 percent share of Dabhol, which is owed $64 million
by the Maharashtra State Electricity Board.

     Both Enron and BG said the sale of gas fields are unrelated
to Dabhol's troubles. McManus declined to say whether BG would be
interested in buying Dabhol.

     Before agreeing with BG, Enron rejected bids from its Indian
venture partners, ONGS and Reliance, as well as from the nation's
biggest refiner, Indian Oil Corp.

                         Competition

     BG faces competition from other companies eager to set foot
in the Indian gas market.

     Both Royal Dutch/Shell Group, Europe's largest oil company,
and Indian state-owned energy companies are developing LNG
terminals in Gujarat, whose coast faces Oman across the Arabian
Sea.

U.S. Supreme Court Questions Reach of Federal Energy Regulators
2001-10-03 16:37 (New York)

U.S. Supreme Court Questions Reach of Federal Energy Regulators

     Washington, Oct. 3 (Bloomberg) -- The U.S. Supreme Court
considered how far federal energy regulators can push electric
utilities to make their power lines available to competitors.

     The nine justices heard oral arguments today on a landmark
1996 federal order requiring utilities to provide equal access to
their power transmission networks. Regulators say giving
competitors access to the power grid formerly run by utilities is
key to opening the power business to competition.

     New York and other states say the Federal Energy Regulatory
Commission order infringed on state authority and could prevent
states from making sure power goes to their neediest customers
during shortages. Power trader Enron Corp. takes the opposite
view, saying the order didn't go far enough to ensure competition.

     ``We're trying to protect the rates and services for the 127
million customers in this country,'' Lawrence Malone, New York
State Public Service Commission general counsel, told the court.

     The justices offered no clear indication of how they will
rule, and several struggled to understand the technical issues of
grid mechanics.

     ``I don't even know how this works, all this blocking,
scheduling business,'' Justice Stephen G. Breyer said during a
discussion of ways utilities can discriminate against competing
power suppliers.

     The question is whether a 1935 law gives FERC authority to
enact the rule, which is targeted at states that have opened their
energy markets to competition, or about half the nation.
     The court is expected to rule by the end of June.

                       Protecting Hospitals

     A ruling against the commission could halt the nation's
advance toward opening to competition the electricity business,
which had $226.5 billion in U.S. sales in 2000, experts said.

     ``If the court enshrines some limitations on FERC's
authority, it will create confusion and it will, at least for a
while, slow change in the industry,'' said James Hoecker,
commission chairman from 1997 until early this year.

     Government lawyers dismissed concerns that the transmission
rule might prevent states from ensuring that customers such as
hospitals receive power if the system gets crowded.

     The rule says utilities can discriminate based on the need
for power, while they can't favor transmission to their own
customers over that of a competitor.

     ``They could protect hospitals, that sort of thing,'' said
Edwin Kneedler, the Justice Department's deputy solicitor general.

                          Enron Argument

     Enron lawyer Louis Cohen argued that the commission issued
the transmission order in 1996 after finding ``endemic, undue
discrimination'' by traditional utilities. Because not all
utilities must open their lines, FERC still is exempting about 60
percent of traffic from the rule, he said.

     Houston-based Enron, the nation's largest energy trader,
needs to be able to send power through lines in states that aren't
open to competition so it can deliver power to customers in
neighboring states that have open markets, Cohen said.

     ``This is a problem only FERC can solve,'' Cohen said. He
asked the justices to tell the commission it has authority to
order these utilities to provide equal line access.

     The commission can address claims of discrimination by
utilities in states without open markets on a case-by-case basis,
Kneedler said in response to questions from the court.

                      Regional Organizations

     The commission has moved further since the 1996 order to
ensure that power-sellers have equal access to transmission lines
and that utilities aren't protecting the market for their own
power plants.

     Recognizing that competitive power suppliers and marketers
won't get into the business if they're not sure they can fairly
sell power through utility lines, the commission has told
utilities to join regional transmission organizations, or RTOs.
The RTOs would independently control the grid even in states that
haven't opened their energy markets to competition.

     Last week the commission told utilities to join an RTO by
Dec. 15 or risk losing the authority to set their own rates based
on market conditions, or having merger approvals delayed.

     Commission Chairman Pat Wood said recently he hopes Congress
will step in if the high court rules against FERC.

Enron to Sell Oil, Gas Fields in India to BG Group (Update1)
2001-10-03 16:13 (New York)

Enron to Sell Oil, Gas Fields in India to BG Group (Update1)

     (Adds closing share price.)

     Houston, Oct. 3 (Bloomberg) -- Enron Corp., which has been
fighting with India's Maharashtra state for nine months over power
payments, agreed to sell oil and natural-gas fields in the South
Asian country to the U.K.'s BG Group Plc for $388 million.

     Houston-based Enron, the biggest energy trader, has been
selling assets, including infrastructure projects such as
pipelines and power plants, to focus on trading and brokering
energy and other commodities. Enron wants to sell its Dabhol Power
project in India, a $3 billion venture it says is owed $64 million
by the state's electricity board.

     The agreement ``represents a significant step for Enron in
selling assets not integrated into our wholesale or retail energy
businesses,'' Jeff Sherrick, Enron president for exploration and
production said in a statement.

     Shares of Enron jumped $2.88, or 9.4 percent, to $33.49,
paring this year's decline to 60 percent. BG fell 2.5p to 261p in
London.

     BG, the U.K.'s former natural-gas monopoly, got a 30 percent
stake in a gas field and an oil and gas field, as well as 63
percent of an untapped deposit on the west coast of India. They
hold more than 170 million barrels of oil and gas, BG said.

     ``BG has gotten assets in an undersupplied market for a
reasonable price,'' said Roger Richards, who helps manage $12
billion at Prudential Bache in London. ``True, there's general
concern about the state involvement. But if you get your foot in
the door, stay and work hard, you'll enjoy returns.''

     Both Enron and BG said the sale is unrelated to Dabhol's
troubles. McManus declined to say whether BG would be interested
in buying Dabhol.

     Before agreeing with BG, Enron had rejected bids from its
Indian venture partners, ONGS and Reliance Industries Ltd., as
well as from the nation's biggest refiner, Indian Oil Corp.

     BG controls Gujarat Gas Co., which supplies gas to customers
in the Gujarat state, and owns half of Mahanagar Gas Ltd., which
serves Mumbai. It also is building a liquefied natural gas plant
in Gujarat.


Mike,

How goes it?  I was thinking about you guys this weekend.  We were in town
for the game (if you want to call it a game).  We ended up staying at a
friends place.  I think that is the first time in quite a while we haven't
seen you on this particular weekend.  We are still plugging along.  How about
you?  I thought I heard you were buying a new house.  Is that right?  Well, I
just hadn't talked to you in a while and I saw you email address on a message
from Sean.  We are going up to KU for the Texas game again.  I can't believe
it has been 4 years since we were up there.  Take care.

DG


Since you will be out of the office next Monday, November 13, you will need
to have someone fill in for you at the staff meeting.

Martha


The ICAP Working Group of the New York State Reliability Council
("NYSRC") is posting this message to inform all interested parties of
the ability to participate, on a "listen-only" basis, in the NYSRC ICAP
WG Conference Call No. 9 scheduled for May 17, 2001, from 9:30 am till
10:30. Attached in Word format is the Agenda for this meeting.  The
NYSRC has opened its Committee, Subcommittee, and Working Group meetings
in accordance with NYSRC Policy No. 2-1, which is available of the NYSRC
web site at "www.nysrc.org", on the "Policies" web page.

Those wishing to participate on a "listen-only" basis can call
954-797-0718 and enter Participant Code 433349. Participants will be
required to place their telephones on mute so as not to prevent other
parties from participating.  Those who plan on listening to the meeting
shall send me an email at "mhogan@cenhud.com" with the names of the
individuals & organizations participating.

Attendees who are not NYSRC ICAP Working Group Members or Alternate
Members will be given an opportunity to comment at the end of each
meeting, or earlier at the Chairman's invitation.

Should you have any questions, please contact me by email at
mhogan@cenhud.com or by phone at (845) 486-5213.

Michael P. Hogan
Secretary, NYSRC ICAP Working Group

(See attached file: NYSRC ICAP WG Agenda CC9.doc)

 - NYSRC ICAP WG Agenda CC9.doc


Beginning Wednesday, April 4th, El Paso will be taking 3,373 Dth per day from DRN #716, contract #101067.  El Paso will scheduling the gas on contract #5207.

Thanks everyone.

Chris L. Germany
Manager, Gas Trading
Phone 713-853-4743
Fax  713-646-3059

 -----Original Message-----
From: 	Laferla, Lynda
Sent:	Tuesday, April 02, 2002 1:43 PM
To:	Germany, Chris
Cc:	Nacey, Sheila
Subject:	RE: April deal

	So give me the details...............do you know his contract number and I assume the volume will
	be 91080 divided by 27 = 3373/day????  LL

 -----Original Message-----
From: 	Germany, Chris
Sent:	Tuesday, April 02, 2002 1:30 PM
To:	Laferla, Lynda
Cc:	Nacey, Sheila
Subject:	RE: April deal

They are starting on the 4th.  I thought I told him the 3rd but I may have made a mistake.  My fault.

Thanks

 -----Original Message-----
From: 	Laferla, Lynda
Sent:	Tuesday, April 02, 2002 11:23 AM
To:	Germany, Chris
Cc:	Nacey, Sheila
Subject:	April deal

	Got a call from El Paso asking to begin deal on 4/4???? let me know  what you want to do and

	El Paso's contract that will be picking up gas....

	Thanks Lynda


Let's make the new one HSC, I think that is what I intended.
---------------------- Forwarded by Janet H Wallis/HOU/ECT on 03/28/2001
09:10 PM ---------------------------

Janet H Wallis
03/28/2001 09:08 AM
To: Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: Panther Pipeline, LTD

Re; 0:/Legal?DHYVL/DJH/2001/Ltr/2001-005crfm.doc
I just did a deal with Panther and I would use the same contract with this
additional language.

Period of Delivery: April 01, 2001 - March 31, 2002

add that either party can terminate with 30 days written notice
add evergreen language so the deal will roll after the one year term.

Thanks,
J

Is the commodity price at Katy tail gate or HSC?  It looks like the contract
says both?


Attached is the approved invoice management procedure for REMEDIATION
projects associated with EPSC operations (EOTT assets).  The procedure was
developed to streamline the insurance recovery process.  If you have any
questions please give me a call.  Also, please forward this to any
individuals that may need access to the procedure.

Thanks, Bill
713.646.7644


RIGZONE DAILY NEWS -- MONDAY, FEBRUARY 18, 2002
------------------------------------------------------------
Daily News from the worldwide upstream oil & gas industry
   to view the complete version, please go to:
   http://www.rigzone.com/newsletter_show.asp?n_id=224
------------------------------------------------------------


Pulpex Bulletin for Thursday, November 8, 2001

Market News:
             Bid      Ask     Last     High      Low   Vol    OI
NBSK ------------------------------------------------------------
Nov01     411.00   423.00        -        -        -     -    80
Dec01     418.00   427.00        -        -        -     -   113
Jan02     423.00   432.00        -        -        -     -    41
Mar02     426.00   448.00        -        -        -     -   153
Jun02     449.00   469.00        -        -        -     -    40
Sep02     470.00   481.00        -        -        -     -    35
Dec02     480.00   497.00        -        -        -     -    15
Mar03     490.00        -        -        -        -     -     -

BEK -------------------------------------------------------------
Nov01          -        -        -        -        -     -    26
Dec01          -        -        -        -        -     -    30
Jan02          -        -        -        -        -     -     -
Mar02          -        -        -        -        -     -     -

Settlement Prices Futures
          Today      Chg      Prev
NBSK -------------------------------
Nov01    417.00     +6.00    411.00
Dec01    422.50     +4.50    418.00
Jan02    427.50     +2.50    425.00
Mar02    437.00     -2.50    439.50
Jun02    459.00     -1.50    460.50
Sep02    475.50     +0.00    475.50
Dec02    488.50     +0.00    488.50
Mar03    503.50     +0.00    503.50

BEK --------------------------------
Nov01    404.00     +0.00    404.00
Dec01    407.00     +0.00    407.00
Jan02    414.00     +0.00    414.00
Mar02    421.00     +0.00    421.00

The above tables should ideally be viewed using Courier or other fixed fonts.
During Pulpex opening hours (0830-1600 UK Time, 0930-1700 CET),prices
are distributed on our web page: http://www.pulpex.com

If you would like someone else to receive this bulletin or to cancel your own
please mail: info@pulpex.com or fax: +44 20 7065 8941


At this meeting will will also discuss the E&Y 'Requests for Data' that we received Thursday afternoon.

Barry.

 -----Original Appointment-----
From: 	Collett, Crissy   On Behalf Of Dimichele, Rich
Sent:	Thursday, January 10, 2002 3:52 PM
To:	Fallon, Jim; Pearce, Barry; Castleman, Kent; Sweeney, Kevin; Wilson, Shona; Gossett, Jeffrey C.; Mills, Scott; White, Stacey W.; Albrecht, Kristin; Hall, D. Todd
Subject:	Meeting - DPR for 11/30 and subsequent dates
When:	Friday, January 11, 2002 2:00 PM-3:00 PM (GMT-06:00) Central Time (US & Canada).
Where:	ESC 04 105

Fallon, DiMichele, Pearce, Todd Hall, Kent Castleman, Kevin Sweeney, Shonna Wilson, Jeff Gossett, Scott Mills, Stacy White, Kristin Albrecht

Topic:  DPR for 11/30 and subsequent dates


I called out muni desk to have them take a look at the current munis avaiable
that looked best at this time to invest $50,000 going out to 30 years for
you.  The following is what they came up with....

Pecos Co TX Cert of Obl w/a Coupon 5.5% Matures in 02/01/11 callable at par
on 02/01/07 offered at $101.964 - AAA rated

Brownsville Util Rev w/a coupon of 5.25% maturing in 09/01/15 callable at par
on 09/01/05 offered at $97.425 - AAA rated

Alvin TX ISD PSF w/a coupon of 5.75% maturing in 08/15/22 callable at par on
08/15/10 offered at par - AAA rated

Houston TX Air Revs w/a coupon of 5.00% maturing in 07/01/28 callable at par
on 07/01/08 offered at 86.479 - AAA rated

Remember, these are subject to change, but if these interest you and they are
not still available, I will see if there is something comparable.

Talk to you soon.  Please call me with any questions.  Thanks, Julie


Hi Darren -

I am responding for Mike.  If you still need to see him (and Shankman) please
contact me so that I may schedule some time on his calendar next week.

Thanks.

Cathy P.
X-36898

Darren Maloney@ENRON
09/11/2000 08:15 AM
To: Mike McConnell/HOU/ECT@ECT
cc: Cathy Phillips/HOU/ECT@ECT, Ted Noble/HOU/ECT@ECT, Elsa
Piekielniak/Corp/Enron@Enron
Subject: Cargill Update

Mike,

I am in London and will return on Wednesday to the office.  I am curious
if you will have any time this week to fill us in on your discussions with
Cargill.

My schedule is generally free with the exception of Wednesday
afternoon conference call with ConAgra.  For simplicity's sake,  I
will be more than happy to coordinate with the rest of the ag team.

--Darren


You may be receiving messages from the Izio InfoPier Course Management
System about account information and sign-ups for your Evening MBA courses.
Izio InfoPier is a Course Management/Learning Management application.  Haas
is engaged in conducting a pilot study of this application.  Each faculty
member may choose whether or not to use the Izio InfoPier application.  You
can ignore the messages being sent from the Izio InfoPier system.  You are
also welcome to log on to it and took a look http://haas.infopier.com

---
Zane Cooper
Chief Technology Officer and Director of Computing
Haas School of Business
U. C. Berkeley


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click here: http://em10.net/UM/CMF.asp?A21.223.681659


CERA's monthly briefing is on the Western Market for the rest of the summer and into winter. To print off, use the PDF version.
There are some hydroelectric projections in one of the tables that may be helpful, as well as electricity and electric price projections.  Also, there are gas demand projections for the current quarter only.  The last page reiterates the Candian supply situation that was discussed in last week's confrence call with CERA.

Lorna

Title: A Shifting Market Landscape
URL(s):
http://www20.cera.com/eprofile?u=35&m=2527

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

FUNDAMENTALS AND REGULATIONS CHANGE WESTERN ENERGY OUTLOOKS

Western energy markets are heading into summer with shifts in the fundamental
and regulatory environment. New forces will reduce pressures on prices and
reliability as the power peak builds.

*  The June 19 FERC Order represents a strong dampener of power prices.

*  Energy demand is off considerably on a year-over-year basis.

*  Lower energy demand has contributed to an easing in natural gas prices in
California, but higher summer loads will likely bring higher gas prices.

**end**

Follow above URL for complete Monthly Briefing (9 printed pages).

E-mail Category: Monthly Briefing
CERA Knowledge Area(s): Western Energy

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

To make changes to your cera.com profile go to:
http://www20.cera.com/client/updateaccount

Forgot your username and password? Go to:
http://www20.cera.com/client/forgot

This electronic message and attachments, if any, contain information
from Cambridge Energy Research Associates, Inc. (CERA) which is
confidential and may be privileged. Unauthorized disclosure, copying,
distribution or use of the contents of this message or any attachments,
in whole or in part, is strictly prohibited.
Terms of Use: http://www20.cera.com/tos
Questions/Comments: webmaster@cera.com
Copyright 2001. Cambridge Energy Research Associates


----- Forwarded by Miyung Buster/ENRON_DEVELOPMENT on 03/23/2001 02:16 PM
-----

	Rob Bradley@ENRON
	03/23/2001 09:22 AM

		 To: Miyung Buster/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: "Green Coal" power plant planned for Washington State

Please distribute

March 23, 2001, 12:00 a.m. Pacific

'Green' coal plant is planned

by Lynda V. Mapes
Seattle Times staff reporter

Washington's first new coal-fired power plant in 30 years is being
planned for Cherry Point in Whatcom County.

The plant is proposed to generate 249 megawatts of power and could be up
and running within 36 months, said John O'Brien of U.S. Electric Power of
Point Lookout, N.Y.

The plant's size falls just below the requirement for review by the state
Energy Facility Site Evaluation Council. The facility must still meet all
requirements of the federal Clean Air Act as well as state air-pollution
controls.

Coal is considered the dirtiest of major fuels for power generation,
emitting more carbon dioxide and gases that lead to smog than natural
gas.

But coal plants vary widely in the amount of emissions they produce,
depending on the quality of the coal, the technology used to burn it and
the environmental standards.

O'Brien said the plant will burn only ultralow-sulfur coal and use stack
scrubbers and other technology to make the coal plant at least as clean
as a natural-gas-fired plant.

"We are going to employ the best technology, and we will spend the money
to make sure it happens. If there is anything dirty about it, we will not
build it."

The company is also examining ways to partially offset carbon-dioxide
emissions - the major cause of global warming - through reforestation of
land in northwestern Washington, O'Brien said.

"On CO2, we will do our best, and we will do better than anyone else, and
more than any of the gas-fired folks," he said.

O'Brien says he knows the plant will be controversial despite his planned
"Green Coal" public-relations campaign beginning May 1.

http://seattletimes.nwsource.com/cgi-bin/WebObjects/SeattleTimes.woa/wa/got
oArticle?zsection_id=268466359&text_only=0&slug=coal23m&document_id=1342765
28

Gregory Rehmke
Foundation for Economic Education
(914) 591-7230 x213; Cell: (914) 760-5638
www.freespeaker.org


EFF_DT PORTFOLIO_ID DOWN95
2/6/01  MANAGEMENT-COAL 0
2/6/01  MANAGEMENT-CRD 360,036.
2/6/01  MANAGEMENT-GAS 1,365,573.
2/6/01  MANAGEMENT-PWR 168,943.
2/6/01  AGG-MANAGEMENT 1,445,176.


---------------------- Forwarded by Robin Rodrigue/HOU/ECT on 12/11/2000
03:13 PM ---------------------------
To: Robin Rodrigue/HOU/ECT@ECT, Judy Dyer/HOU/EES@EES, Michelle
Gross/HOU/EES@EES, Wayne Kimball/HOU/EES@EES, Derenda Plunkett/Enron
Communications@Enron Communications, Jeff McClellan/HOU/EES@EES,
gbill@contechnet.com
cc:
Subject: FW: Picture of New Air Force One


CALENDAR ENTRY:	APPOINTMENT

Description:
	Leave for meeting

Date:		4/23/2001
Time:		4:00 PM - 5:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Grid Lock Our energy transport system is horrible. Just the way many
utilities like it.
Forbes, 05/11/01

US Sen. Feinstein Urges Hearings On FERC 'Improprieties'
Dow Jones Energy Service, 05/11/01

U.S. Physical Gas Cash Prices Fall; No Load Weekend
Dow Jones Energy Service, 05/25/01

FOCUS Brazil real to remain pressured due to energy crisis/political concerns
AFX News, 05/25/01

Vice Pres Cheney Sees Wood As New FERC Chairman - NYT
Dow Jones Energy Service, 05/25/01

INDIA: Enron's woes make Indian power firms anxious.
Reuters English News Service, 05/25/01

Enron Unit's Sales, Costs Rise With Power Prices, Paper Says
Bloomberg, 05/25/01

India Enron Panel Lacks Authority to Solve Dispute, Expert Says
Bloomberg, 05/25/01

Companies People Ideas
Grid Lock Our energy transport system is horrible. Just the way many
utilities like it.
BY Daniel Fisher and Lynn Cook

06/11/2001
Forbes
080
Copyright 2001 Forbes Inc.

Our energy transport system is balkanized and horribly inefficient.
Unfortunately, many of the incumbent utilities want to keep it that way.
The Bush energy plan hits hard on increasing production. That alone won't
solve the nation's power crunch. "Supply is not the only issue," says
Michelle Michot Soss, director of the Energy Institute at the University of
Houston. "The issue is bottlenecks."
Some of these bottlenecks are political. A lot of them are created by
incumbent utilities that do not welcome competition.
Florida, for example, whose demand for electricity is growing at about 3.7% a
year, is a net importer of energy. It generates around 24% of its power in
aging oil-fired plants that should be replaced with more efficient
combined-cycle generators. These burn natural gas in a turbine and use the
hot exhaust gases to create steam, which spins a second turbine; they spew
out less particulate and consume about a third less energy.
So why doesn't Florida get efficient power plants? First, the state has only
one main gas pipeline, though others are working their way through the
regulatory process. More vexing is a state law, zealously defended by Florida
utilities, that bans outside competitors from building combined-cycle plants
larger than 75 megawatts--enough to juice 75,000 households--on the dubious
theory that they waste water. Duke Energy tried to challenge the law with a
500-megawatt plant in New Smyrna Beach. FPL Corp. (parent of Florida Power &
Light) fought the plant all the way to the Florida Supreme Court and won.
Florida's screwy power-plant law is just one example of the byzantine
regulations that stymie efforts to make the nation's energy grid more
efficient and prices more competitive. From laws that protect utilities
against more efficient rivals to outdated state regulations that discourage
the construction of transmission lines, these choke points either waste
energy or make it impossible for energy to get where it should go.
A series of state laws in the 1920s laid down the monopolies on grids. They
were codified in the Public Utility Holding Company Act of 1935, a populist
law that identified bigness with badness in the electricity business: To
avoid federal scrutiny and regulation, most utilities decided not to operate
outside their own state boundaries; rate setting fell to the states. But even
as wholesale electricity markets have been deregulated, utilities can still
bat away outsiders by reserving their own transmission lines for "native
load." This allows them to keep an open lane on the energy highway, as it
were, to rush electricity to certain customers when their demand suddenly
spikes.
In such areas as the Southeast, the owner of a transmission line has a pretty
free hand in calculating what its native load is. So Southern Co., which owns
utilities in Georgia and four neighboring states, can determine how much
power to let into its territory.
Southern Co. defends the rule, saying its primary job is ensuring customers
get all the power they need. "The marketers would like to schedule another
10,000 megawatts of power to go across our lines tomorrow," says William
Newman, a senior vice president. "It's not going to happen. The system wasn't
designed for it."
Enron disagrees. Utilization of its natural gas pipeline system increased 50%
in the five years after the gas market was deregulated. Steven Kean, head of
government regulations at the Houston-based giant, thinks similar gains are
possible in electricity if companies like Southern are forced to hand over
control of the grid to independent regional boards that will determine how to
allocate power flows and where to build new lines. The utilities "don't want
to accept the economically pure solution," he says. "Once utilities have been
adequately compensated for their stranded costs, then it's time for them to
shut up, sit in the corner and let the economists and lawyers work out the
details."
Lawyers and economists making decisions for us? That doesn't sound like
deregulation. But there is a case to be made for separating control of power
lines from control of other utility assets. Phillip G. Harris is chief
executive of PJM (it stood for Pennsylvania-Jersey-Maryland), a regional
power line organization. Since this independent system operator was formed in
April 1997 and six local utilities ceded control over transmission lines,
reliability has gone up and prices down, he says. Where Southern Co. will
only add transmission capacity if it has a firm contract in hand, PJM can
order lines to be built. Its member companies are spending $311 million over
the next three years on new lines to increase the flow from power-rich to
energy-poor areas.
Last May temperatures hit the highest levels since 1930 at the same time as
15,000 megawatts of PJM's 59,000 megawatts were out of service for
maintenance. As the peak load rose to 51,000 megawatts--7,000 more than was
available within PJM--power streamed in over a dozen entry points. Prices
topped out at $432 a megawatt hour. That's about four times what you are
probably paying for residential service, but it stands in contrast to spikes
in the thousands of dollars in California and the Midwest during similar
crises.
Unfortunately, what works inside PJM doesn't transfer to Los Angeles, much
less to Manhattan. Different rules regarding electricity transactions and a
shortage of transmission lines make it difficult to export electricity across
the Hudson River. When Hydro-Quebec tried to build a power line across Long
Island Sound in 1999, Connecticut nixed the idea. Ostensible reason: the
possibility of harm to oyster beds. Real reason: Folks in New Haven asked,
what's in it for us--and didn't see any clear benefit to them. There is,
unfortunately, no mechanism for buying off losers in these deals, such as
property owners near, but not under, the power line. So they hire lawyers and
talk solemnly about oysters.
California's bottleneck is on Path 15, a 500,000-volt transmission line that
links the northern and southern halves of the state. Path 15 can't
accommodate the flows of power needed when the weather is cool in San
Francisco and hot in L.A. But the legal and financial chaos in California,
with the state on the verge of taking over much of the transmission system,
discourages investors from backing an increase in capacity. "If we put in
good rules on how to operate transmission systems, you would see investment,"
says Lawrence Makovich, an analyst with Cambridge Energy Research Associates.
"The problem is right now there is no such plan."
Enron is trying to force the Federal Energy Regulatory Commission to take
charge, so far to little avail. In a case pending before the U.S. Supreme
Court, Enron accuses FERC of abdicating its responsibility to do for
interstate trading of electricity what it did for trading of gas.
But forcing FERC down that path will be difficult. Natural gas producers
needed interstate pipelines to get to big markets in the North, which needed
the gas. But incumbent (and politically connected) electric companies have no
such incentive to stimulate a national market in electricity. "There's not a
single incentive in the entire U.S. to relieve congestion," states Jeanine
Hull, president of Strategic Energy Advisors and a former power-company
lawyer. "Ask yourself this question: If you had a chance today to retain your
monopoly or compete, which would you choose?"

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

US Sen. Feinstein Urges Hearings On FERC 'Improprieties'

05/25/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- U.S. Sen. Dianne Feinstein, D-Calif., called Friday
for Senate hearings to investigate "possible improprieties" involving the
Federal Energy Regulatory Commission's relations with the industry it
regulates.
"Despite evidence of manipulation and price gouging in both the electricity
and natural gas markets in California and the West, and a finding by FERC
last November of 'unjust and unreasonable' (electricity) rates, the
commission has failed to take the actions necessary to bring reliability and
stability to the marketplace," Feinstein said in a letter to Sen. Joe
Lieberman, D-Conn., seeking hearings by the Senate Governmental Affairs
Committee.
Feinstein cited a report in The New York Times Friday in which FERC Chairman
Curt Hebert related a phone conversation with Ken Lay, chairman of Enron
Corp. (ENE). Hebert alleged that Lay offered to bring his influence to bear
with the Bush administration to maintain Hebert as chairman if the regulator
would adopt policy positions favored by Enron.
Hebert is quoted as saying he was "offended" by the conversation. Lay
disputed Hebert's account.
The Times article also quoted Vice President Dick Cheney as saying Texas
utility regulator Pat Wood has "got to be the next chairman of the FERC" to
address problems in electricity markets. Cheney's remark is slated for
broadcast by the public television program "Frontline."
"While Mr. Lay's account (of the conversation) differs, it is clear that the
citizens of the United States, especially the people of California, who are
suffering from FERC's failure to do its job, deserve an investigation and
full public hearing into what happened," Feinstein said in the letter to
Lieberman.
"FERC is a $175 million-a-year agency charged with regulating the energy
industry, and it would be unconscionable if any of the nation's electricity
traders or generators were in a position to be able to determine who chairs
or becomes a member of the commission," Feinstein wrote.
"Since FERC has refused to fulfill its legally mandated function under the
Federal Power Act to restore 'just and reasonable' electricity rates, we need
to ask whether undue influence by the companies that FERC regulates has
resulted in its failure to act," the letter said.
Feinstein seeks a broad investigation into FERC, and not just an airing of
the Lay-Hebert exchange, which Feinstein said she sees as an example of "a
definite problem," the senator's spokesman, Howard Gantman, said.
"There are very close relationships between FERC and the industry it
regulates. Some of those relationships could be improper," Gantman said.
Lieberman, who has requested that the General Accounting Office investigate
FERC's response to the California electricity crisis, will become chairman of
the Governmental Affairs Committee when Democrats assume the Senate majority
in about two weeks.
There was no immediate response from Lieberman's office regarding Feinstein's
letter.
-By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com

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

U.S. Physical Gas Cash Prices Fall; No Load Weekend

05/25/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- U.S. natural gas physical prices fell Friday ahead of a
no-load holiday weekend, widening considerably the differential to the New
York Mercantile Exchange futures board.
Traders saw storage buying providing the only hint of demand.
Also, several pipelines in Texas, along with El Paso's Tennessee Gas and PG&E
Citygate, held system-wide operational flow orders on the high inventory
resulting from storage. Those orders also sent prices downward, traders said.
Demand remains slight with only hints of sustained hot weather sighted in the
next two weeks,traders said.
With few demand fundamentals in place, traders saw few utilities in the
market.
The Nymex June futures contract settled at $3.973/MMBtu, down 8.1 cents, the
first time the front contract has fallen below $4/MMBtu in nearly 10 months.
Traders pointed to 17,000 option puts at $4/MMBtu supporting the June
contract. Options expired Friday; the June contract expires Tuesday after the
Memorial Day weekend. Traders expect a $3.80-$4/MMBtu range on Tuesday for
expiration.
Also, Enron Online will keep its trading boards open for the holiday.
Prices for the June contract are in the same range as they were a year ago,
when driving heat and competition for gas during May pushed prices upward.
At the benchmark Henry Hub in south Louisiana, prices were in a
$3.76-$3.90/MMBtu range, down 25 cents-35 cents.
Deals at Transcontinental Gas Pipe Line Station No. 65 were done at
$3.82-$3.94/MMBtu, down 25 cents-32 cents.
At the Arizona-California border, El Paso's prices fell $1.40-$2.55/MMBtu to
a $9.80-$11.50 closing range. Western electricity prices weakened again
Friday for the holiday, and traders said pipelines into California were
showing high inventories.
At the PG&E Citygate, prices fell $4.25-$5.50 to a $3.90-$4.40/MMBtu closing
range on the reported operational flow order.
Buyers paid $3.74-$3.90/MMBtu at the Katy hub in East Texas, down 23 cents-32
cents. At Waha in West Texas, buyers paid $3.59-$3.75, down 30 cents-39
cents.
-By John Edmiston, Dow Jones Newswires,713-547-9209;
john.edmiston@dowjones.com

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

FOCUS Brazil real to remain pressured due to energy crisis/political concerns

05/25/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

SAO PAULO (AFX) - The real is likely to remain under pressure in the
short-to-medium term due to concerns about the impact of the energy shortage
crisis on the economy and ongoing political worries, analysts said.
They said the energy shortage problems are scaring away direct foreign
investment, while political concerns ahead of the presidential elections next
year are expected to come much more to the forefront once the Argentine debt
swap operation is completed at the start of next month.
The real was at 2.3480 against the dollar in afternoon trade, down about 20
pct from the end of last year.
Analysts said the weakness of the real combined with a generally-accepted
slowdown in GDP growth as a result of the energy crisis has complicated the
task of the central bank's monetary policy committee Copom.
The Copom raised its base interbank Selic rate to 16.75 pct from 16.25 pct
earlier this week, in what was regarded by many analysts as a preventive move
against the inflationary impact of the real's depreciation.
In a recent report, Banco Santander Central Hispano SA said it has revised
its forecast for Brazil's 2001 GDP growth to 2.2 pct from 4.1 pct previously
due to the possible impact of the government's energy rationing plan.
BSCH said it is also cutting its 2002 GDP growth estimate to 3.0 pct from 4.5
pct previously.
BSCH also revised its forecast for the real's level against the dollar to
2.30 by end-2001 from 2.13.
"Argentina's problems and their effects on the flow of capital to Brazil...
added to energy rationing and stronger perceptions of political risk hinder a
significant appreciation of the real, although we consider a possible gradual
solution to the Argentine crisis," BSCH said.
Analysts said central bank intervention yesterday and today in the foreign
currency market in an effort to stem the real's depreciation is clear
evidence of the central bank's concerns about the local unit.
The central bank today sold 2.0 mln dollar linked-bonds maturing on March 14,
2002 after selling 1.0 mln dollar-linked bonds yesterday.
"We don't know how far the real will go. Everything points to a situation in
which the dollar will move to the 2.45 level against the real in the short
term and never return to the 2.0 level it was at at the start of the year,"
Brazilian Institute of the Economy (IBRE) director Renier Garcma said.
Direct foreign investment has slowed down this year as a result of the
concerns surrounding Brazil.
The government has already revised its estimate of direct foreign investment
in Brazil this year to 19 bln usd from 24 bln previously. Direct foreign
investment in the four months to April was 6.6 bln usd, about half the levels
posted a year earlier.
Enron Corp recently suspend investments of 600 mln usd in the Brazilian
energy sector, citing regulatory concerns, while the government decided to
postpone indefinitely the privatisation of Cia Energetica earlier this month
due to the energy crisis.
The minimum price for the sale of Cesp Parana was set at 1.7 bln reals, with
a number of foreign companies lined up to bid.
"Investors are shying away from carrying out operations in the country. The
energy crisis has had a disastrous impact on Brazil's image; the country risk
has risen and companies are opting for saver markets," IBRE's Garcma said.
Analysts said the energy crisis has strongly affected the image of President
Fernando Henrique Cardoso and has therefore strengthened the opposition's
position ahead of next year's presidential elections.
They said corruption allegations involving former and current senior
officials in the government and the alleged breach of vote secrecy rules at
the Senate resulting in proceedings for the dismissal of former Senate
chairman Antonio Carlos Magalhaes and senator Jose Roberto Arruda have
complicated the political scenario.
Yesterday, Senator Arruda resigned from the Senate, while a local TV news
channel reported Magalhaes will resign next week and attack Cardoso.
"The government seems to have lost direction," one analyst said.
Earlier this month, Congress rejected a petition presented by the left-wing
Workers Party (PT) to set up a joint Congress-Senate commission to
investigate corruption in the private and public sectors after 20
parliamentarians belonging to parties within the ruling coalition withdrew
their support for the motion.
Opposition deputy Aloizio Mercadante at the time said the PT was preparing
legal action against the government and the deputies who withdrew their
support for the petition, alleging they were offered financial incentives to
do so.
Analysts said fears remain that the opposition will attempt to revive the
corruption commission issue, further complicating the governability of the
country in an already delicate moment.
bl/cdo/lbc/as For more information and to contact AFX: www.afxnews.com and
www.afxpress.com

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

Vice Pres Cheney Sees Wood As New FERC Chairman - NYT

05/25/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- Vice President Richard Cheney expects Texas Public
Utilities Commission Chairman Pat Wood to become chairman of the Federal
Energy Regulatory Commission, according to Friday's New York Times.
In an interview for an upcoming episode of the PBS series Frontline, Cheney
says, "Pat Wood's got to be the new chairman of the FERC, and he'll have to
address" various problems in electricity markets, according to the Times
article, part of a joint effort with the Frontline program.
The article says current Republican FERC Chairman Curtis Hebert received a
call from Enron Corp. (ENE) Chairman Kenneth Lay this year prodding him to
back a national push for retail electricity competition and faster access to
the power transmission grid in exchange for Enron's support of Hebert in his
new job.
It quotes Hebert as saying, "I was offended."
Lay, one of President George W. Bush's largest campaign contributors,
provided the White House with a list of preferred candidates for FERC posts
and had access to the White House energy policy task force chaired by Cheney,
the article says.
Wednesday the Senate Energy and Natural Resources Committee approved Wood and
Nora Brownwell of the Pennsylvania Public Utilities Commission, Bush's
nominees to fill two empty seats on FERC's five-member board. The full Senate
has yet to approve them.
It would be up to the president whether to replace Hebert as chairman. In the
Times article, Hebert said no one has told him he would be replaced.
-By Campion Walsh, Dow Jones Newswires; 1-202-862-9291;
campion.walsh@dowjones.com

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

INDIA: Enron's woes make Indian power firms anxious.
By Himangshu Watts

05/25/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, May 25 (Reuters) - India's private power producers demanded on
Friday that the federal government intervene in Enron Corp's bitter row with
a local utility and state clearly if it wants the U.S. energy giant to stay
in India or quit.
"The government needs to decide whether we want Enron or not. In case they
don't want Enron, they should spell out the reasons for it," Harry Dhaul,
director-general of the Independent Power Producers' Association of India,
told Reuters.
But Federal Power Secretary A.K. Basu said Enron and the Maharashtra State
Electricity Board (MSEB) had to resolve their differences over the $2.9
billion project themselves.
"Basically the Maharashtra government and Dabhol have to sort it out," Basu
told reporters after a meeting with Wade Cline, the chief executive officer
of Enron India.
Basu stuck to the federal government's stand that it would help implement any
proposal emerging from negotiations between the Dabhol Power Co, 65-percent
owned by Enron, and the MSEB.
Dhaul said the fate of Dabhol, India's largest direct foreign investment and
biggest power project, would determine the future of domestic and foreign
private investment in power and other infrastructure projects.
"It is an important issue. It is a benchmark for all future infrastructure
investments of $1 billion plus."
On Thursday, Enron said the MSEB cancelled a disputed power-buying contract
just five days after the Houston-based energy firm moved to pull out of the
project.
WANT PRO-ACTIVE APPROACH
Dhaul said the federal government should intervene in the dispute between
Enron and the utility. "We want a pro-active approach in supporting
independent power producers."
Basu said the government had advised Enron to thrash out the matter with the
negotiation committee set up by the Maharashtra government. The committee is
due to meet on May 29.
Cline refused to answer questions from reporters and only said the company
would not renegotiate the power-buying contract on the basis of a committee
set up by the state government.
"We won't renegotiate on the basis of the Godbole Committee report," he said.
The committee, chaired by a former bureaucrat Madhavrao Godbole, has
suggested that the tariff be re-negotiated to make it cheaper and to remove
the dollar linkage which resulted in a steep increase each time the rupee
fell against the dollar.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to it charging 7.1 rupees per kilowatt hour versus 1.5 rupees
charged by other suppliers.
Dabhol Power Co is building India's largest power plant with a total capacity
of 2,184 MW.
The first phase of the $2.9-billion project with a capacity of 740 MW began
operating in May 1999. The second phase that will add 1,444 MW of capacity,
is expected to be completed this year.

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

Enron Unit's Sales, Costs Rise With Power Prices, Paper Says
2001-05-25 13:00 (New York)

     Portland, Oregon, May 25 (Bloomberg) -- Enron Corp.'s
Portland General Electric reported first-quarter earnings rose
10 percent as high electricity prices pushed up both sales and
costs for the Oregon power producer, the Oregonian reported.
     The company earned $43 million, the paper said. Revenue from
wholesale power sales was $480 million, three times the year-
earlier period, even as costs to buy electricity almost doubled.
     PGE's power plants produce less than half the electricity
needed to supply its 728,000 Oregon customers, forcing the company
to buy power on the same markets into which it sells, the paper
said. Dry weather is cutting hydropower resources, and easing
wholesale prices could make it more difficult for the company to
profit from power sales outside the state, the paper said.
     Edison International's Southern California Edison, which has
filed for bankruptcy, and two California agencies, one of which is
now defunct, owe the company $128 million, the paper said. The
company is pursuing collection, the paper said, citing Chief
Financial Officer James Piro.

India Enron Panel Lacks Authority to Solve Dispute, Expert Says
2001-05-25 07:16 (New York)

India Enron Panel Lacks Authority to Solve Dispute, Expert Says

     Mumbai, May 25 (Bloomberg) -- Indian negotiators lack the
authority to solve a dispute that has shut down Enron Corp.'s $3
billion power plant, India's single biggest foreign investment,
said a former member of the negotiating committee.
     The negotiators will meet Enron officials on Tuesday next
week, though any proposals made will not be binding on either
Dabhol Power Co., 65 percent owned by Enron, and the Maharashtra
State Electricity Board, the official said. Maharashtra, Dabhol's
sole customer, has refused to pay some of its power bills.
     ``Where is the guarantee Enron and the government will accept
what the committee recommends,'' said R.K. Pachauri, director-
general at the Tata Energy Research Institute, a research
organization. Pachauri said he quit the committee because it was
being asked to renegotiate the project, when it was set up to
solve the payment dispute.
     Maharashtra yesterday served Dabhol notice canceling the
power purchase contract, six days after Dabhol gave the board
notice it was set to pull out of the project in six months.
     The board has refused to pay Dabhol 3 billion rupees for
power supplied in December and January, saying the bills should
reflect a 4 billion rupee penalty it imposed on the company Jan.
28 for failing to supply power at full capacity.

                            Meeting

     Other India officials said the two parties can't afford not
to negotiate as there is too much at stake.
     Mahrashtra and Dabhol serving each other notices is ``simply
legal maneuvering,'' said Kirit Parikh, an economist on the prime
minister's economic advisory council.
     ``It won't affect the process of finding a solution because
``the ground reality is neither Enron nor Maharashtra can afford
not to find a compromise'' to the dispute, Parikh said.
     The government needs a solution as it could be left footing
the bill.
     India's federal and state governments, which have guaranteed
the board's payments for power and some of the loans to help fund
the project, may have to pay Dabhol more than 170 billion rupees
($3.6 billion) if it terminates the 2,184 megawatt power project.
     ``We are going back to Maharashtra tomorrow to work on the
problem.'' Dabhol managing director Wade Cline said. Cline was in
New Delhi to meet A. K. Basu, secretary to the ministry of power.


The following name overlay was completed in GCP today.

CP ID		FROM							TO
80245		Mirant Americas Energy Marketing Canada, Ltd.		Mirant Canada Energy Marketing, Ltd.

The shortname change will be made on Friday, November 9, 2001

Cheryl Johnson
Enron Net Works
Global Data Management
713.853.3103


Kevin,
     Thank you for your patience in this matter.  We always make sure to email you the best price on the right car.  Unfortunately in the past we have been guilty of quick quotes, and the price was given immediately.  However we found it isn't very helpful to quote our customers on the wrong car.  That's why we just want to make sure you get the right price, so you can come buy the car without the hassle and avoid any confusion.
     As I let you know earlier.  We have a pricing philosophy in place to save you money and time.  Depending on the vehicle you choose when you arrive on the lot our pricing is between 1% to 9% over wholesale.  On a vehicle like the one you selected a 2001 Toyota Tundra AccessCab V8 4x4, you can purchase for $28272.35 (including $500 rebate good till 04/02/01) plus any taxes and applicable fees.  This one includes the following options:
-4-WHEEL ANTI LOCK BRAKE SYSTEM W/ DAYTIME RUNNING LIGHTS
-ALL WEATHER GUARD PACKAGE HEAVY DUTY BATTERY, STARTER & HEATER
-CONVENIENCE PKG: PWR WINDOWS LOCKS/MIRRORS, LIGHTING PKG, SLIDING RR WINDOW W/PRIVACY GLASS, DRIVER & PASSENGER SUNVISOR W/MIRROR
-DLX 3-IN-1ETR/CASS/CD COMBO W/6 SPEAKERS
-FOG LAMPS
-WHEEL AND TIRE UPGRADE #1: P265/70R16 RADIAL TIRES & WHEEL ARCH MOULDINGS

-SECURIKEY PLUS
-SIDE SIGNAL MIRROR UPGRADE
-CHROME TUBE STEP BARS
-RECEIVER HITCH/WIRE HARNESS
-FLOOR MATS (CARPET-4)
     We can complete as much of the paperwork as you would like online or by phone.  Either way it is important your Internet price reflects your lowest cost of driving.  Again any lease or financing information can be obtained by emailing me at mailto:Rwells@tejastoyota.com
     When we talk we can set aside some time for you to drive your new Toyota.  That would also be a good time to appraise your trade in.  If you need any more information to make an informed decision, please don't hesitate to call me directly at 888.308.3527 or email mailto:Rwells@tejastoyota.com  .  I look forward to earning your business.
By the way I'll call you tomorrow, if I don't hear from you by 2pm.
Sincerely,

Russell Wells
Internet/Fleet Managermailto:Rwells@tejastoyota.com  http://www.tejastoyota.com
Ph: 888.308.3527
Fax: 281.446.7865


You know me...any excuse to celebrate.  Name a time and place...amazingly my
calendar appears to be open tomorrow night.

Wilson Kriegel@ENRON
04/19/2000 10:07 AM
To: Susan M Scott/HOU/ECT@ECT
cc:
Subject: Re: What does the future hold?

thanks, for the email. i liked it...
very true...
but hey i'm not out of Enron yet,...and the physical move will be in a little
while....so we have time to party and have some good times/
before i move...
Still think we should take Ben out for a dink tomorrow, unless you have a
date?


----- Forwarded by Steven J Kean/NA/Enron on 02/15/2001 09:38 AM -----

	Phillip K Allen@ECT
	12/22/2000 03:06 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc:
		 Subject:

Steve,

I am sending you a variety of charts with prices and operational detail.  If
you need to call with questions my home number is 713-463-8626.

As far as recommendations, here is a short list:

 1.  Examine LDC's incentive rate program.  Current methodology rewards sales
above monthly index without enough consideration of future
      replacement cost.  The result is that the LDC's sell gas that should be
injected into storage when daily prices run above the monthly index.
                    This creates a shortage in later months.

 2.  California has the storage capacity and pipeline capacity to meet
demand.  Investigate why it wasn't maximized operationally.
                      Specific questions should include:

  1.  Why in March '00-May '00  weren't total system receipts higher in order
to fill storage?

  2.  Why are there so many examples of OFO's on weekends that push away too
much gas from Socal's system.
       I believe Socal gas does an extremely poor job of forecasting their
own demand.  They repeatedly estimated they would receive       more gas than
their injection capablity, but injected far less.

 3.  Similar to the power market,  there is too much benchmarking to short
term prices.  Not enough forward hedging is done by the major
                    LDCs.  By design the customers are short at a floating
rate.  This market has been long historically.  It has been a buyers market
and the
     consumer has benefitted.

Call me if you need any more input.

Phillip


Do you want to go to Austin tonight?  I have an extra ticket to the game
tomorrow.  We will be back to Houston by 5 tomorrow.
Let me know.

Eric


Start Date: 12/16/01; HourAhead hour: 16;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001121616.txt
###Cannot locate a Preferred or Revised_Preferred Schedule that matches the FINAL Individual Interchange Schedule.  Unable to assign deal number.


FYI........Call with any questions.  Thanks!
---------------------- Forwarded by Rita Wynne/HOU/ECT on 08/23/2000 04:44 PM
---------------------------

	From:  Jackie Morgan                           08/23/2000 04:37 PM

To: Rita Wynne/HOU/ECT@ECT, Clem Cernosek/HOU/ECT@ECT
cc: Michael Eiben/HOU/ECT@ECT, Cheryl Dudley/HOU/ECT@ECT
Subject: HPL Expense Contracts

Per your request.  This list has been pulled from Global Contracts but has
not been reviewed.  Please take a look at it and let me know if you need
additional information.  I will  begin printing the attached points by
contract.  I'll give you an update tomorrow a.m.

Jackie
ext  39177


Sally,
I've confirmed with the training company the two dates - 14/15th September,
and 21/22 September.
The room will be EB 560, so there are no external venue costs to take into
account.

I'll ask Gracie to coordinate with Patti on the details regarding materials
and lists of attendees - and of course we'll keep you in the info loop.

Given that it is for your group only, nearer the time we'll circulate the
agenda and ask the attendees to identify if there are any particular areas of
interest, or specific questions. In  doing so, we will be able to prime the
instructors so that they are able to tailor the direction of the course for
your group.

I am working with Norma Villareal on other hr matters within EOPS, but do let
me know if there's anything specific you need.

regards
Tim


Given the growth in EES it has become apparent that it is time to consolidate the risk functions between EES and EWS.  This will provide EES with the systems, resources and risk expertise of the wholesale energy groups necessary for it to continue to grow and take advantage of current market opportunities.

With this in mind and in agreement with the management of EES, two new risk groups inside Enron Americas will be formed to provide EES with pricing, structuring, retail and wholesale commodity risk management, logistics and back-office services.  These groups main function is to provide these services to EES.  We have asked Rogers Herndon, currently Vice President-Trading in the Eastern Power Group to manage this function in the Eastern Interconnect (this includes both gas and power).  Rogers will continue to report to Kevin Presto.  We have asked Don Black, formerly Vice President-EES Risk Management and Sourcing, to manage this function in the Western U.S.  Don will manage this group from Houston and will report to Tim Belden.

These groups will work very closely with EES to pursue shared goals while ensuring close coordination with the wholesale gas and power trading organizations.

These changes are effective immediately.  Please congratulate Rogers and Don on their new roles.

John Lavorato & Louise Kitchen


Attached, in Word format, are the following documents, marked against the
comparable documents from McGarret C.

Series Certificate (258191)
Series Supplement (258196)
Drawdown Request (258198)
Total Return Swap Confirmation (258201)
Put Option Agreement (258202)
Put Option Assignment (258215)
Notice of Put Option Assignment (258218)
Second Amended & Restated LLC Agreement of McGarret IV (258239)
Second Amended & Restated LLC Agreement of Big Island IV (258206)
Receipt of Trust (258270)
Independent Auctioneer Letter Agreement (258302)
Am. No. 1 to Sale & Auction Agreement (258307)
Direction Letter to Owner Trustee (260012)

Please call or e-mail if you have any questions.

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

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

 - 260012.doc
 - 258196.doc
 - 258198.doc
 - 258201.doc
 - 258202.doc
 - 258215.doc
 - 258218.doc
 - 258239.doc
 - 258260.doc
 - 258270.doc
 - 258302.doc
 - 258191.doc


Sorry that we didn't get together today.  I plan to be out of the office from now until  Monday, December 31.  I will be in Houston through Christmas, and can be available by cell phone on Thursday and Friday this week, December 20 and 21.  I will be in New York for several days following Christmas, from December 26 through December 28.

Tomorrow, I will send you a contact list for Mid and Back Office Operations for the remainder of this week and the week of Christmas.  That contact list contains my hotel number in New York, if something critical were to arise while I am out of the office.

I had provided you yesterday with a list of IT and Operations personnel to be included in the meeting to be set with Elizabeth Saeger regarding the process for handling terminations of transactions and arriving at the residual value of deals non-terminated deals in the risk books.  I have not seen a meeting scheduled yet, and as you can see from the memo that I sent you yesterday, many risk book administrators will begin their vacations around Christmas this week.  If you still plan to hold the meeting this week, please notify my assistant, Christina Valdez (x39106) and I will try to join in by phone.

I hope that you and your family have a great Christmas.  I will see you back in the office on December 31. Feel free to call me in the interim either at home or on my cell phone.  --Sally