Please see the following articles:

Sac Bee, Wed, 7/18: Lawmakers debate efforts to save Edison:
Competing bills range from a straight bailout to purchase of transmission
lines
Sac Bee, Wed, 7/18: PG&E sues state over seizure of long-term power contracts
Sac Bee, Wed, 7/18: Energy Digest: Advocate attacks utility rescue plan
Sac Bee, Wed, 7/18: Hour of decision: Who will pay for costly power of past,
future?   (Editorial)
SD Union, Tues, 7/17: Utility sues state seeking millions in seized power
contracts
LA Times, Wed, 7/18: PG&E Sues State Over Contracts
SF Chron, Wed, 7/18: Consumer prices up as energy costs moderate
SF Chron, Wed, 7/18: Contra Costa may upgrade 9 buildings
$1.7 million earmarked for conservation
SF Chron, Wed, 7/18: Lawmakers devise rival bailout plans for Edison
Push to come up with alternative to bankruptcy before recess
SF Chron, Wed, 7/18: News briefs on the California power crisis
SF Chron, Wed, 7/18: State's largest utility sues state seeking millions in
power contracts seized by governor
Mercury News, Wed, 7/18: Surplus state power sold at loss
Mercury News, Wed, 7/18:  Light bulb moment (Commentary)
LA Times, Wed, 7/18: California Trading, Wholesale Power Boost Duke's
Earnings 27%
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Lawmakers debate efforts to save Edison: Competing bills range from a
straight bailout to purchase of transmission lines.
By Jim Sanders
Bee Capitol Bureau
(Published July 18, 2001)
Divided legislators began wrestling Tuesday with competing proposals to keep
one of California's largest private utilities, Southern California Edison,
from going bankrupt.
Pressure is rising as Edison continues to struggle with more than $3.5
billion in debt and a tentative plan by Gov. Gray Davis to buy the utility's
transmission lines for $2.76 billion has attracted little support.
The question now is whether legislators will accept a modified version of the
governor's deal, will approve an entirely different rescue plan, or will
simply let Edison join Pacific Gas and Electric Co. in bankruptcy court.
"We're encouraged that at least there's activity and people are grappling
with the issues," said John Fielder, an Edison senior vice president.
The Assembly's energy committee heard testimony on two of the competing
proposals Tuesday. The Senate's energy committee will take up the third plan
today.
The issue conceivably could be decided this week, since legislators are
scheduled to begin their summer recess Friday.
Of the three proposals under consideration, one would authorize state
purchase of Edison's transmission lines, one would provide an option to buy,
and one would simply tally Edison's debts and charge ratepayers to pay them
off.
Some legislators favor doing nothing at all and letting a bankruptcy judge
decide Edison's fate.
Steve Maviglio, a spokesman for Davis, said the Democratic governor supports
anything that "comes close" to the tentative deal, hammered out in April, to
buy Edison's transmission lines.
Assemblyman Fred Keeley, D-Boulder Creek, and Assembly Speaker Robert
Hertzberg, D-Sherman Oaks, have proposed a rescue plan that would buy the
lines at a lower price -- $2.4 billion -- and would modify the governor's
plan substantially.
Key elements of the bill would allow the state to buy Edison's hydroelectric
assets if the transmission-line sale falls through, allow businesses to
contract with private suppliers for electricity in 2003, and commit the state
to paying only 70 cents of every dollar owed by Edison to power generators.
The deal also would provide California with ownership or conservation
easements to more than 20,000 acres of land, and would require Edison to
increase its supply of alternative energy -- such as wind or solar. The
proposal is not expected to spark new rate hikes, Keeley said.
The Senate plan, like the Keeley-Hertzberg proposal, would require large and
medium businesses to pay down much of Edison's debts.
The Senate plan dedicates up to $2.5 billion in large-user rates for debts
involving banks and renewable energy sources known as "qualifying
facilities."
The plan, written by Sen. Byron Sher, D-Palo Alto, seeks to leave Edison with
$1 billion in debt from generators and marketers for the utility to work out
on its own.
The Senate plan would give the state a five-year option to buy Edison
transmission lines for book value -- about $1.2 billion.
Rather than provide conservation easements, the plan calls for Edison's
environmentally sensitive acreage to be acquired by the state or a trust.
Remaining parts of the proposal are similar to the governor's deal.
A third proposal, pushed by several lawmakers, seeks to eliminate debt for
Edison and PG&E. It would not involve transmission lines, conservation
easements or other such elements.
Advocates say Edison's debt stemmed largely from failed state regulatory
policies, so the state should simply charge consumers a monthly fee to pay it
off.
"This is a straight bailout -- no hidden balls, no extras," said Assemblyman
Rod Wright, D-Los Angeles.
It is not yet known whether that monthly fee could fit within the existing
rate structure. For home'owners, the amount is estimated at $4 in the PG&E
service area and $2 within Edison's boundaries.
Consumer groups are wary of the Edison rescue proposals, fearing the state
will ultimately promise too much and get too little.
"When a supermarket and dairy farmer both are forced to pay a 10-year bailout
tax, the consumer pays more for milk," said Doug Heller of the Foundation for
Taxpayer and Consumer Rights.

The Bee's Jim Sanders can be reached at (916) 326-5538 or jsanders@sacbee.com
<mailto:jsanders@sacbee.com>.
Kevin Yamamura of The Bee Capitol Bureau contributed to this report.

PG&E sues state over seizure of long-term power contracts
By Dale Kasler
Bee Staff Writer
(Published July 18, 2001)
Reopening an old wound in California's energy crisis, Pacific Gas and
Electric Co. has sued the state over a group of low-cost energy contracts
seized almost six months ago by Gov. Gray Davis.
The lawsuit, filed Monday in San Francisco Superior Court, stems from the
collapse of the California Power Exchange and the state's entry into the
power-buying business in January.
PG&E and Southern California Edison had entered into a series of long-term
purchase contracts through the exchange, a now-defunct market for buying and
selling electricity. But as both utilities collapsed financially and the
Power Exchange was clinging to life, the exchange seized the contracts and
was about to auction them off for nonpayment of bills.
That's when Davis stepped in. Using his emergency powers, the governor
grabbed control of the contracts, saying he didn't want them resold at
inflated prices.
At the time, the exchange said the contracts were worth about $1 billion,
with PG&E's share set at $348 million.
But it's likely their value has fallen along with the spot market price of
electricity. Back when the governor seized them, PG&E's contracts were for
$60 to $130 a megawatt-hour. That was a bargain at the time, and made the
contracts very valuable. Now that spot prices have plunged, those contracts
are no longer such a great deal.
PG&E's lawsuit didn't put a value on the contracts. Nevertheless, "the state
has benefited from the contracts," said PG&E spokesman Ron Low. "We should be
compensated."
The state had planned to pay for the contracts, at a price to be determined
by a state government claims board, said Davis' spokesman Steve Maviglio. But
he said the state also expected to be taken to court over the issue.
"We always thought we'd be fighting it out in a neutral forum," Maviglio
said. "This comes as no surprise."

The Bee's Dale Kasler can be reached at (916) 321-1066 or dkasler@sacbee.com
<mailto:dkasler@sacbee.com>.

Energy Digest: Advocate attacks utility rescue plan

(Published July 18, 2001)
The state's consumer advocate criticized Gov. Gray Davis' proposed rescue
plan for San Diego Gas & Electric on Tuesday, calling it too generous to the
utility's shareholders.
The Public Utilities Commission's Office of Ratepayer Advocates called the
proposed deal with SDG&E and its parent company, Sempra Energy, "clearly
excessive."
The advocate said the state goes too far in the core element of the rescue
plan -- the $1 billion state purchase of SDG&E's transmission lines. The
advocate said the money would be better spent building or buying new
generating plants.
The plan must be approved by the Legislature and PUC. A similar plan, to buy
Southern California Edison's transmission lines, has run into numerous
roadblocks in the Legislature.
--Dale Kasler

Hour of decision: Who will pay for costly power of past, future?

(Published July 18, 2001)

In the next few days, state lawmakers and regulators must make some
unsettling choices about how to share the financial burdens of California's
electricity debacle.
Looking backward, they will decide how -- or whether -- to erase $3.5 billion
in debts run up last year by Southern California Edison, when it bought
pricey power but couldn't pass the costs on to consumers. Looking ahead, they
will choose who, if anybody, will get out of paying for expensive power
purchased by the state since the utilities ran out of cash last January.
In both cases, the principle guiding the decision ought to be the same: No
one is blameless in getting California into this mess, and no group can
escape the pain of getting out of it.
Democratic lawmakers in the Assembly are searching in vain for ways to hide
the real costs from voters. Their idea is to have the large users of power
(mostly big businesses) pay off Edison's past debts. In return, businesses
would get some freedom to shop for cheaper power deals in the future.
The problem is that there won't be much opportunity to shop in the coming
years. That's because Gov. Gray Davis went out at the very peak of the market
and bought up most of the state's future electricity supply before it went on
sale. The strategy of locking most of California's power demand into
long-term contracts seemed ill-advised at the time, even more so now.
Now that the governor has done all this shopping, the Public Utilities
Commission must assure that electric customers will pay for all that
electricity -- $43 billion worth of power over the next decade or so. In
addition, the PUC must commit customers to repaying the state for the power
it has already purchased this year -- many billions on top of that. The state
borrowed from itself to buy all this power, and is banking on a bond sale to
pay off this debt. Unless a portion of the rate customers pay is dedicated to
repaying those bonds, they can't be sold.
This web of regulation, contracts and finance is so complex, so huge, it's
hard to see how the energy leaders in a few days will find a graceful, fair
solution. But for a political compromise to work, all the interests involved
must take some pain.
Southern California Edison must swallow some of its debt. Power generators
and the state must renegotiate some of their long-term contracts so that the
generators give back some of the bounty they reaped by market manipulation.
And no consumer, big or small, should be allowed to avoid paying the true
costs of the power they use. In this reckoning, there's no easy way out for
anyone -- and especially not for the elected officials who must deliver the
bad news.

Utility sues state seeking millions in seized power contracts

\
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By David Kravets ASSOCIATED PRESS  July 17, 2001  SAN FRANCISCO )
California's largest utility sued the state Tuesday seeking reimbursement of
millions of dollars in energy contracts the governor seized Jan. 31.  San
Francisco-based Pacific Gas & Electric Co. said it "has received no
compensation for the damage to its property," according to a suit filed in
San Francisco Superior Court.  The suit came as PG&E, which filed for
bankruptcy protection in April, struggles to repay $14.4 billion in debt to
thousands of creditors.  Invoking constitutionally vested powers, Gov. Gray
Davis seized the energy contracts to keep the California Power Exchange from
liquidating them. The now-defunct exchange, which was the state's middleman
for the buying and selling of power, wanted the contracts for itself to
recoup hundreds of millions in unpaid power buys that PG&E owed it.  The
governor's office acknowledged that California owes PG&E for the contracts,
an amount that Davis wants a judge to determine. At the time they were
seized, the state estimated their value at $160 million, while the power
exchange priced them at $347 million.  "We seized the contracts to have
reasonable priced power and expected that price to be set in a neutral
forum," said Steve Maviglio, the governor's spokesman.  It's not easy to
determine their value. Using the contracts, the state buys electricity at a
set price, and can avoid the sky-high prices it has to pay for power bought
at the last minute. Therefore, the contracts' value changes with the volatile
price of electricity.  "We believe the state has benefited from the value of
our contracts, and as a result we should be compensated," PG&E spokesman Ron
Low said.  Low declined to place a value on the contracts.  The contracts in
question, which the state is now using to buy electricity because the
utility's bad credit rating restricts it from buying its own, promise power
at rates below those being charged today by power generating companies.
Because of the shaky financial pictures of PG&E, Southern California Edison
Co. and San Diego Gas & Electric Co., the state in January began buying much
of the electricity to supply the ratepayers of those utilities.  The power is
sold to ratepayers through the utilities, which reimburse the state through
consumers' bills. But, because of energy pricing rules that prompted the
utilities' unstable financial footing, current rates are not enough to repay
the state. To recoup its losses, the state is expected to sell $8 billion or
more in bonds to be repaid through increased consumer power rates.  Under
California's 1996 deregulation plan, the state's utilities sold many of their
power plants and were forced to buy electricity on the market through the
newly created power exchange.  As demand mushroomed and supplies became
scarce, the utilities began paying substantially more for electricity than
deregulation rules allowed them to collect from consumers.  The case is PG&E
v. California, 322921.

PG&E Sues State Over Contracts
From Bloomberg News

July 18 2001

SAN FRANCISCO -- PG&E Corp.'s Pacific Gas & Electric Co. utility sued
California on Tuesday, saying it wants to be paid for the wholesale
electricity contracts the state seized in January.

Gov. Gray Davis took away Pacific Gas' 12-month forward contracts to ensure a
sufficient and continuous supply of electricity for the state. At the time,
California estimated the contracts were worth $150 million.

Pacific Gas claims the contracts had "significant value" because they allowed
the utility to receive power for less than current market rates. "Although
PG&E has demanded just compensation from the [state], PG&E has received no
compensation for the damage to its property," the utility said in court
papers filed Monday in San Francisco Superior Court.

The company, which filed for Chapter 11 protection in April, is seeking
damages and attorney fees. The state claimed in January that the contracts
would have delivered enough electricity to power 100,000 to 500,000 homes for
6 cents to 13 cents per kilowatt-hour.

Officials in the governor's office did not immediately return calls seeking
comment.
Copyright 2001, Los Angeles Times <http://www.latimes.com>

Consumer prices up as energy costs moderate
LEIGH STROPE, Associated Press Writer
Wednesday, July 18, 2001
,2001 Associated Press
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/07/18/finan
cial0837EDT0023.DTL>
(07-18) 05:37 PDT WASHINGTON (AP) --
Consumer inflation edged up last month as electricity prices continued to
surge, while the cost of gasoline and other energy products retreated.
The Labor Department reported Wednesday that the Consumer Price Index, the
government's most closely watched inflation measure, climbed by a seasonally
adjusted 0.2 percent in June. The index was up 3.8 percent for the year.
The new reading on consumer prices matched analysts' expectations.
The "core" rate of inflation, which excludes volatile energy and food prices,
rose 0.3 percent in June compared with just 0.1 percent in May.
,2001 Associated Press

Contra Costa may upgrade 9 buildings
$1.7 million earmarked for conservation
Jason B. Johnson, Chronicle Staff Writer <mailto:jbjohnson@sfchronicle.com>
Wednesday, July 18, 2001
,2001 San Francisco Chronicle </chronicle/info/copyright>
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/07/18/
MNC199898.DTL>
Contra Costa will spend as much as $1.7 million to conserve energy at the
county's nine worst "energy hog" buildings under a proposal approved
yesterday by the Board of Supervisors.
The measure is part of a larger effort the board in March agreed to undertake
to reduce the county's energy use by up to 10 percent.
A private company will install upgraded heating, ventilation and air
conditioning control systems at the nine buildings, resulting in savings of
just under $200,000 a year.
"What we've done is pick our energy hogs," said Bart Gilbert, the county's
general services director. "To start the process of making our buildings more
energy efficient."
County officials had no difficulty in identifying the hogs, which tended to
be large buildings that serve a variety of uses and are open as much as 24-
hours a day, seven days a week, said Gilbert.
Eight of the buildings are in Martinez, the county seat, and one is in
Antioch. They include the Bray Courts building in downtown Martinez,
sheriff's offices and morgue, and the Employment and Human Services building
in Antioch.
One energy waster is the 120,000-square-foot Summit Center, an office
building on Arnold Drive in Martinez that the county acquired last year.
The building's cooling system activates at a particular setting -- 76
degrees. So it shuts down completely when the temperature reaches below that
setting and won't turn on until it reaches about 79 degrees.
But new digital technology controls allow the system to gradually reduce or
increase power without having to shut down, which saves energy.
"When you turn the system on everything doesn't kick in, everything doesn't
come on full speed," said Gilbert. "That's a tremendous savings."
The county will contract with Syserco Inc. of Fremont to install the new
control systems from July through June 30, 2002.
County officials believe that the plan will reduce demand by 700,000 kilowatt
hours and pay for itself in about five years by reducing energy costs.
The county has applied for a low-interest loan from the state's Energy
Department that would cover about half the plan's costs. It is one of several
Bay Area communities seeking such loans during the energy crisis.
In the past two months, state officials have received $50 million worth of
new loan applications from city and county governments.
Before the energy crisis, the department would average between $5 and 10
million in loan applications, said Virginia Lew, project manager for the
department's Energy Partnership Program.
San Francisco is set to receive $5 million in loans for replacing inefficient
lighting at San Francisco General Hospital and city traffic signals.
Solano County will receive $1.1 million for lighting and efficiency projects
similar to those in Contra Costa, while Santa Rosa was given $1.5 million for
water and wastewater treatment facility upgrades.
Oakland officials are awaiting approval of the city's application for about
$400,000 for a combination of lighting and ventilation efficiency projects.
e-mail Jason B. Johnson at jbjohnson@sfchronicle.com
<mailto:jbjohnson@sfchronicle.com>.
,2001 San Francisco Chronicle </chronicle/info/copyright> Page A - 17

Lawmakers devise rival bailout plans for Edison
Push to come up with alternative to bankruptcy before recess
Lynda Gledhill, Chronicle Sacramento Bureau <mailto:lgledhill@sfchronicle.com>
Wednesday, July 18, 2001
,2001 San Francisco Chronicle </chronicle/info/copyright>
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/07/18/
MN76320.DTL>
Sacramento -- Lawmakers are struggling this week to agree on a plan to keep
Southern California Edison from declaring bankruptcy as they rush to complete
business before Friday's scheduled summer recess.
After months of talking about a solution and dismissing one agreed to by
Edison and Gov. Gray Davis, lawmakers now have several competing proposals to
consider.
A plan introduced last week by Assembly Speaker Robert Hertzberg, D-Sherman
Oaks (Los Angeles County), was debated for several hours yesterday, along
with a GOP-backed alternative by Assemblyman Roderick Wright, D-Los Angeles.
The two plans, which are scheduled for votes today in the Assembly Energy
Costs and Availability Committee, take sharply different approaches:
-- Hertzberg's plan would pay $2.4 billion for Edison's transmission lines to
help cover the utility's estimated $3.5 billion debt. The utility would be
allowed to pay off its remaining debt by issuing bonds.
The utility would repay the bonds using ratepayer money. For the first two
years, all customers would pay for the debt, but after that the largest users
would pay off the rest.
-- Wright calls his plan a "straight bailout." It would allow the utility to
issue bonds to cover all of its debt and impose a $2 a month rate increase
for all users until the debt is paid.
The Senate also introduced its own plan. A bill by Sen. Byron Sher, D-Palo
Alto, would give the state a five-year option to buy the transmission lines
and would have the state back only $2.5 billion of the utility's debt.
Since Davis announced a deal with Edison earlier this year, lawmakers,
business groups and consumer advocates have all expressed reservations with
one aspect or another of it. Opposition has usually focused on the state
purchase of Edison's transmission lines.
The flurry of activity this week is an effort by lawmakers to take some kind
of vote before they adjourn. The Edison agreement has an Aug. 15 deadline for
approval by the Legislature.
Brian Bennett, a spokesman for Edison, said creditors view that date as
extremely important.
"We're as close to bankruptcy as our creditors want us to be," he said. "Is
it a drop dead date? I don't know, but it is clearly an important date."
Consumer groups have denounced Wright's plan, and at least one calls
Hertzberg's proposal just another bailout and said it would cost Californians
$6.7 billion over the next 10 years.
"We cannot be seduced by big businesses paying a bailout tax," said Doug
Heller, a consumer advocate with the Foundation for Taxpayer and Consumer
Rights. "At the end of the day, we know businesses will pass these costs on
to the consumer."
Included in the 76-page Hertzberg bill are provisions that would allow large
companies to buy their power directly from a provider instead of going
through the utility after 2003.
But a coalition of large business groups also said they are strongly opposed
to the plan because it does not allow for immediate direct access.
"Ultimately, we think our companies buying power for themselves is the best
solution," said Jack Stewart, president of the California Manufacturers and
Technology Association. "If businesses think there's a light at the end of
the tunnel where they see lower rates coming, they might tough it out and
stay."
Wright argues that the beauty of his proposal is that it could easily apply
to the Pacific Gas and Electric Co. service area if the company wanted to use
it as a way out of bankruptcy court. He estimates that PG&E customers would
pay about $4 a month to help the company pay off its debt.
"This is a straight bailout," Wright said. "This is not a hidden bill. There
are extras."
Wright said he believes his constituents would rather pay an extra $2 than be
unemployed because their business left the state due to high energy costs.
Business groups said the idea makes sense.
"What good would it do to have your electricity bill reduced by $10 or $15
but not have a job?" said Bill Hauck, president of the California Business
Roundtable.
Whatever plan is eventually authorized would be used to convince the PG&E
bankruptcy judge to follow a similar model for that company, giving the state
those transmission lines as well.
The purchase of the transmission lines has been at the center of Davis' plan.
He argues that the purchase will give the state the ability to upgrade the
system, allowing a better flow of power between Northern and Southern
California and a decreased chance of blackouts.
But opponents argue that the state is getting one-third of a complicated
system that will cost billions to upgrade and operate.
"It's like buying a car with three wheels -- it is not going to get out of
the lot," consumer advocate Heller said.
E-mail Lynda Gledhill at lgledhill@sfchronicle.com
<mailto:lgledhill@sfchronicle.com>.
,2001 San Francisco Chronicle </chronicle/info/copyright> Page A - 14

News briefs on the California power crisis

Wednesday, July 18, 2001
,2001 Associated Press
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/07/18/state
0913EDT0146.DTL>
(07-18) 06:13 PDT (AP) -- diuriegr1 ?By The Associated Press?SAN DIEGO (AP) -- County supervisors want to eliminate a $100 fee for ?installing solar power systems to spur interest in the alternative energy ?source. ?Supervisor Ron Roberts proposed waiving the fee at the board's Tuesday ?meeting. A new ordinance may be ready for the supervisors' approval in two ?months. ?The fee is charged to homeowners who live in the unincorporated areas of the ?county. Solar power systems for hot water heaters can cost about $4,000 and ?home units can cost about $26,000. ?The county has been issuing more permits for solar units this year and ?expects to issue 250 permits by December. Two years ago, the county issued ?only 12. ?TEMECULA, Calif. (AP) -- An Indian burial ground sits in the way of a ?proposed power-line route and tribal members have asked U.S. Sen. Barbara ?Boxer to help preserve the site. ?Boxer, D-Calif., last week introduced an amendment to the Interior ?Appropriations bill that would place more than 700 acres of land owned by the ?Pechanga tribe in a federal trust. If approved, the legislation would allow ?the tribe to bypass the procedure review by the Bureau of Indian Affairs. ?San Diego Gas & Electric wants to run a 500,000-volt power line through the ?area. The $271 million route would run through southwestern Riverside County ?and link the utility's grid with one operated by Southern California Edison. ?SDG&E officials said the proposed federal legislation wouldn't derail the ?company's project. ?"I don't think it jeopardizes the project," said SDG&E spokeswoman Jacqueline ?Howells. "There are variations of our line that don't require that land, and ?there are alternatives further west." ?The state's Public Utilities Commission must still approve the project. ?The tribe recently purchased the site, which has one of the state's oldest ?oak trees. It is also home to several village sites and areas used for ?cremation. Tribal chairman Mark Macarro said the amendment wasn't ?specifically meant to block the power line project but rather to preserve the ?land from development. ?,2001 Associated Press ???????State's largest utility sues state seeking millions in power contracts seized ?by governor ?DAVID KRAVETS, Associated Press Writer?Wednesday, July 18, 2001 ?,2001 Associated Press ?URL: ?<http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/07/18/natio?nal0848EDT0542.DTL>?(07-18) 05:48 PDT SAN FRANCISCO (AP) -- ?California's largest utility has sued the state seeking reimbursement of ?millions of dollars in energy contracts seized by the governor. ?San Francisco-based Pacific Gas & Electric Co. "has received no compensation ?for the damage to its property," the company said in a lawsuit filed Tuesday ?in San Francisco Superior Court. ?PG&E filed for bankruptcy protection in April and is struggling to repay ?$14.4 billion to thousands of creditors. ?Gov. Gray Davis seized the energy contracts on Jan. 31 to keep the California ?Power Exchange from liquidating them. The now-defunct exchange, which had ?been the state's middleman for buying and selling power, wanted the contracts ?to recoup hundreds of millions of dollars that PG&E owed it. ?The governor's office acknowledged that California owes PG&E for the ?contracts, an amount that Davis wants a judge to determine. At the time they ?were seized, the state estimated their value at $160 million, while the power ?exchange priced them at $347 million. ?"We seized the contracts to have reasonable priced power and expected that ?price to be set in a neutral forum," said Steve Maviglio, the governor's ?spokesman. ?Under the contracts, the state buys electricity at a set price rather than ?paying higher prices for power bought at the last minute. Therefore, the ?contracts' value changes with the volatile price of electricity. ?"We believe the state has benefited from the value of our contracts, and as a ?result we should be compensated," PG&E spokesman Ron Low said. ?Low declined to place a value on the contracts. ?,2001 Associated Press ?????Surplus state power sold at loss ?Posted at 11:50 p.m. PDT Tuesday, July 17, 2001 ?BY JOHN WOOLFOLK ??Mercury News ???State officials who bought power contracts averaging $138 per megawatt-hour ?for this month are selling some of the power back for as little as $1 per ?megawatt-hour, traders say. ?After scrambling this spring for every megawatt it could buy to stave off ?summer blackouts, cool weather and decreased demand have left the state ?holding more power than it needs and selling the surplus for whatever it can ?get. ?State officials won't say how much they are selling the power for, but ?acknowledged unloading surplus electricity. ?``We're seeing certain times of the day where we may not need power that we ?previously thought we needed, and we're selling it on the open market,'' said ?Oscar Hidalgo, spokesman for the state Department of Water Resources. ``We're ?probably moving a little more power than we anticipated, but I don't think ?anybody anticipated a July like we're experiencing.'' ?Utilities routinely sell surplus contract power when demand is lower than ?expected. But the state's recent sell-off could fuel criticism that ?California bought too much power at too high a price, fearing rolling ?blackouts and soaring prices this summer. ?``There's a painful lesson to be learned when you overbuy when supplies are ?tight,'' said Gary Ackerman, executive director of the Western Power Trading ?Forum. ``Anybody can lose money in this business, and the state of California ?is getting a taste of that.'' ?The state in the past week has sold anywhere from 10 to 20 percent of its ?available power, Hidalgo said. On Tuesday, the state had up to 40,000 ?megawatts available, while demand hovered around 32,000 megawatts, according ?to the power grid operator. ?Must be sold ?Because electricity cannot be stored, power purchased in contracts for a ?later date would be wasted if not used or sold. ?``It's better than losing it altogether,'' Hidalgo said. ``The way the ?electricity business is set up, you either use it or move it. You can't put ?it in a bottle and put it on a shelf.'' ?State officials would not say how much they've made in sales to offset ?purchase costs, citing concerns about jeopardizing their bargaining position. ?According to California Energy Markets, a trade weekly, the state was ?unloading power last Thursday at $25 per megawatt-hour. Ackerman said the ?state has been selling power for as little as $1 to $5 per megawatt-hour. ?Power was selling on the spot market for $20 to $40 per megawatt-hour ?Tuesday. ?The state, which assumed the role of power buyer for California's biggest ?utilities in January, expected to sell surplus power from time to time, ?although not quite this much, Hidalgo said. Even with demand down, the state ?still is buying more power than it sells, he said. ?With temperatures throughout the West unseasonably low in recent weeks, other ?utilities also are selling their surplus power at a loss. ?``That's an accepted operating risk we always assume,'' said Scott Simms, ?spokesman for Portland General Electric, adding that recent federal price ?caps are lower than what the Oregon utility paid. ``Sometimes you gain, ?sometimes you lose. Hopefully, if you planned well, you end up winning.'' ?Whether the state planned well or overbought is hard to say. The contracts ?could prove invaluable if another heat wave threatens blackouts. Ackerman ?likened power contracts to insurance -- a prudent move to guard against ?shortages and price spikes, even if it turns out you don't need it. ?At the very least, the current situation underscores the importance of ?weather in the volatile electricity market. Traders pore over forecasts and ?even buy weather insurance, Ackerman said. ?Demand and prices have been so low that some energy companies are shutting ?down the small power plants called ``peakers.'' ?Hidalgo said the state has no regrets. ?``What we were doing was making sure we had an available supply with these ?contracts,'' Hidalgo said. ``We were facing scarcity in the market early on. ?There wasn't enough supply to fulfill the need. What the contracts have done ?is obligated the producers to give us power.'' ?Blackout threat fades ?The state's daily power costs have fallen from more than $100 million in May ?to less than $26 million in July, Hidalgo said, and there hasn't been a ?blackout in two months. While some of the surplus power is sold on the ?market, it is also being traded to Northwestern hydropower utilities to cover ?past debts, he said. ?``This is not a bad position for us to be in,'' Hidalgo said, adding that the ?situation could always take a turn for the worse. ``We can't lose sight of ?the fact that we're still in an emergency situation. If this was routine, ?this crisis would be over. We're not out of the woods.'' ???Contact John Woolfolk at jwoolfolk@sjmercury.com ?<mailto:jwoolfolk@sjmercury.com> or (408) 278-3410. ????????Light bulb moment ?Published Wednesday, July 18, 2001, in the San Jose Mercury News ?NOW it all makes sense. Dick Cheney hasn't been pushing to drill for more oil ?and gas because of his pals in the energy business. It's because of his ?electric bill. ?The veep mansion, it turns out, consumes electricity the way a 1965 ?Oldsmobile burned gas. The bill for this year -- $186,000 -- shouldn't have ?to come out of Cheney's budget, the White House says. It should be paid by ?the Navy, which owns the property. ?No way, we say -- unless the house lights have some national defense value. ?Perhaps blinding the pilots of incoming fighter jets? ?The Bush team says California should just face up to market prices. So why ?not Cheney? ?But there is an alternative, as we've discovered out here. Conservation. It ?works. Really. ?Cheney's got a 33-room house. Do they all have to be lit up all the time? ?????Business; Financial Desk ?California Trading, Wholesale Power Boost Duke's Earnings 27%?THOMAS S. MULLIGAN??07/18/2001 ?Los Angeles Times ?Home Edition ?Page C-2 ?Copyright 2001 / The Times Mirror Company ?Pushed by the explosive growth of its trading and wholesale-power businesses, ?Duke Energy Corp. on Tuesday reported a 27% increase in second-quarter ?profit, narrowly topping Wall Street estimates. ?Duke's net income was $419 million, or 53 cents per share, in the quarter ?ended June 30, up from $329 million, or 44 cents, in the year-ago quarter. ?The consensus estimate of industry analysts was 52 cents per share. ?Revenue for the quarter leaped 43% to $15.6 billion. ?Shares rose 38 cents to close at $42.03 on the New York Stock Exchange. ?Charlotte, N.C.-based Duke, like other out-of-state independent power ?producers, is under fire from Gov. Gray Davis for allegedly overcharging for ?electricity from its California generating plants. ?Duke does not break out its California results, but its profits from soaring ?spot-market prices in California during the quarter probably amounted to no ?more than a penny or two per share, according to analyst Jeff Gildersleeves ?of Argus Research in New York. ?California accounts for about 10% of Duke's U.S. wholesale-power business, ?and about 90% of its California power is sold through long-term contracts ?rather than on the spot market, the company has said. ?Those long-term contracts are a source of worry for investors, Gildersleeves ?said. Neither Duke nor the state has disclosed whether the contract prices ?can be adjusted downward if spot-market prices fall, he said. If the prices ?are not firm, it could represent a risk to future profits, he added, ?especially if spot prices continue to fall. ?Duke's North American Wholesale Energy business unit posted second-quarter ?operating earnings of $251 million, up 128% from $110 million a year earlier. ?Analyst Timothy M. Winter of A.G. Edwards in St. Louis said the overall ?quarter was "very good," considering that Duke's earnings from its ?regulated-utility business in North and South Carolina actually were flat ?because of mild weather, a slowing economy and increased costs associated ?with some nuclear generating facilities being out of operation. ???PHOTO: Duke, which owns a plant in Morro Bay, beat analyst estimates.; ; ?PHOTOGRAPHER: CAROLYN COLE / Los Angeles Times ?


Attached is the plan for California.  Please call should you have any problems with the file.

Regards,
Don Hanson
Public Relations and Marketing Manager
Dynasty Motorcar Corporation
888-818-1688 Toll Free
250-765-4528 Tel
250-765-4187 Fax
dhanson@dynastymotorcar.com
www.itiselectric.com <http://www.itiselectric.com>


Please plan to attend Sally Beck's expanded staff meeting:

Date:  Monday, May 8
Time:  2:30-3:30 pm
Location: 5C2
Speaker: Beth Perlman
Topic:  "Changes in IT"

Please note:  Next expanded meeting will be held June 12.

Patti


---------------------- Forwarded by Mark S Muller/HOU/EES on 07/10/2001 07:50
AM ---------------------------

Tracy Price <tprice@fieldcentrix.com> on 07/09/2001 06:03:29 PM
To: "'mmuller@enron.com'" <mmuller@enron.com>
cc:
Subject: FW: where does our energy come from?

FYI, Curt is a friend of mine, and past head of the California legislature,
a Republican.

-----Original Message-----
From:  Curt Pringle [mailto:Curt@curtpringle.com]
Sent: Monday, July 09, 2001 3:23 PM
Subject: where does our energy come from?

Assemblyman Bill Leonard's most recent e-newsletter contained the following
information.  I think it is very interesting to consider in light of the
present energy situation in California and the comments of our present
Governor.
Regards,
Curt

---------------------------------------------

***Who Really Powers California?***
Governor Davis has made no secret that he believes that swashbuckling,
cattle rustling, energy barons from Texas are to blame for our energy
crisis.  While Texas power companies make for good bad guys in the
Governor's transparent Kabuki theater of blame, Leonard Letter readers
may
be interested to see who really provides power to Californians.  The
following list illustrates what percentage of our power supply each
group of
generators provides. (Editor's note: these percentages have been rounded
up
resulting in slightly more than 100%)
18%- Pacific Gas and Electric (California)
15%- Southern California Edison (California)
11%- Imported power from the Northwest (including Canada)
10%- Los Angeles Department of Water and Power (California)
10%- Imported power from the Southwest
7%- State and Federal Agencies
6%- AES power company
5%- Municipal Utilities and Irrigation Districts
5%- Reliant power company
4%- Duke power company
4%- Southern power company
4%- Dynegy power company
1%- Sacramento Municipal Utility District (California)
1%- Calpine power company
1%- San Diego Gas and Electric (California)

It should be noted that of this list, only Dynegy and Reliant are from
Texas.  These two companies represent a total of 9% of California's energy
portfolio.  By comparison, Georgia-based Southern (Mirant), Virginia's AES,
and North Carolina's Duke Energy, have a 14% share of our energy portfolio.
This list does not focus on who is gaming the market.  However, every
provider listed benefited from skyrocketing energy prices.  In trying to
identify those power producers who used market power to ring up high profits
on Californians, we should include ALL power producers in our
investigations.  State and federal agencies, independent power companies,
utilities, municipal utilities, and even local irrigation districts could
all be guilty of gouging consumers.  Davis's focusing on only those
companies from Texas does everyone in this state a disservice and is a
misrepresentation of fact.

------------------------------

Curt Pringle
Curt Pringle & Assoc.
2532 Dupont Drive
Irvine, CA 92612

(949) 474-4090
(949) 474-4082 fax


Thanks we are working on it.

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


Gentlemen,

As Dave and John know, I'm working on a deal for ENA (and with Jude) which
has as one aspect a cost plus EPC contract for the construction of a power
plant.  We need to put together the T's and C's for a cost plus contract, and
since it is possible that NEPCO might be the contractor, I wanted to use
something that is acceptable to NEPCO.  I will then take the laboring oar in
order to get a working draft prepared for this project.

As always, I'm on a short time frame, so your response would be appreciated.

Thanks,

Kay


Please give Ruth access to o:\Gas Structuring\Bankruptcy Folder\Transportation

Thanks


Kim make sure you brief me about this on Monday,

John
---------------------- Forwarded by John J Lavorato/Corp/Enron on 12/02/2000
09:57 AM ---------------------------

	From:  Laura Valencia                           12/01/2000 09:17 AM

To: John J Lavorato/Corp/Enron@Enron
cc: Kimberly Hillis/HOU/ECT@ect

Subject: Confirmation of your Video Shoot

Thank you for agreeing to participate in the video for the Houston Analyst
Meeting taking place in January of 2001.
We have scheduled your shoot for Tuesday, December 5th at  1:00 p.m.  If you
have any questions in regards to the video content or questions that will be
addressed, please contact Kathryn Corbally at X34785.

I can be reached at X36785 if I can be of any further assistance.

Thank you, Laura


Certainly understand the tradition you have with OU/Texas and it would be
hard. I imagine David is starting to feel a little cocky, given we should be
undefeated going into Texas, but he may still need to seek the shelter of
the study, as I know Texas is not going to roll over and play dead.

Sounds like Meagan has a full agenda this Fall and a trip to Norman would
only get in the way. I'm sure David will not let the fire die, if she is
truly interested in OU. FYI, OU's Spring Break is March 17-25 next year. So
you can plan accordingly. Let me know if you decide when you decide to come
up and I can get you lined up with Prospective Student Services for a tour.
Also, I remember you telling me about your concerns about grades. I know
that OU requires a 24 on the ACT, or finish in the top 1/3 of your
graduating class. It is my understanding that will soon be increasing to 26
or top 30% of graduating class. Looks like OU is following UT on tightening
entrance requirements.

I can get you shirts caps, sweatshirts, etc. for OU, UT and Tech. You can go
to Bigtimesports.com and look at the styles. I think they are also in the
school colors. If you see a style you like, let me know the size shape and
school and I can order it. If some of it is for you, let me know, as they
have different styles for women. Also, I can have logo's etc. reduced (like
I did on your Bevo on your shirt) so they are not so big. I always have them
reduce the OU from 1 3/4" to a
1 1/4" size, so I don't look like a "poster boy" for OU. Anyway, let me know
and I will order them for you.

Let me know when you hear back from Lexi about your discussion relative to
summer internship recruiting.

Ted K. Jacobs
Director of Energy Management
The University of Oklahoma
307 West Brooks, Room 218
Norman, OK  73019-4007
(405)325-0758
Fax (405)325-2096
E-mail: tjacobs@ou.edu
Website: www.ou.edu/business/em

-----Original Message-----
From: Sally.Beck@enron.com [mailto:Sally.Beck@enron.com]
Sent: Monday, September 25, 2000 1:23 PM
To: Jacobs, Ted K
Subject: RE: Oklahoma Trip

Thanks for looking into the OU/Texas tickets for us.  With the ages of the
kids, I think that we will pass on those single tickets.  The kids love our
home tradition for the game, and weren't sure that they wanted to give that
up. (I have cake pans in the shape of the state of Texas and the state of
Oklahoma - one daugther decorates one, and the other decorates the second
cake - add some bean dip and chips and it's our own version of a tailgate
party!)

We were hoping to bring Meagan up to look at OU this fall, with our eye on
that last game of the season. However, Klein High School has started the
football season very strongly, winning all games to date.  That means that
we may be headed for high school playoffs again this year.  Meagan is on
the drill team and must be at all games.  Last year, we played right up to
Thanksgiving in the playoffs.  So, we have decided to pick a weekend in the
spring after drill team contest season is over to make that trip with
Meagan.

We are interested in caps, shirts, etc. for UT, OU and Texas Tech.  Do you
have a list of what is available for those schools?

"Jacobs, Ted K" <tjacobs@ou.edu> on 09/23/2000 03:07:11 PM

To:   "'Sally.Beck@enron.com'" <Sally.Beck@enron.com>
cc:
Subject:  RE: Oklahoma Trip

Thanks for the nice words. I hope Enron will be able to look at some
students for summer internships, as I am sure they will be gone by Spring.

As far as Texas tickets go, I can come up with 5 singles, but not 5
together
or even 3 and 2. Let me know if interested and I will try to get them.
Might
be able to trade up or something.

Let me know what other schools you are talking about and I can find out for
you.

Again, thank you for taking time out your schedule to come up and be a part
of the OU recruiting effort. It has been your support and efforts that we
have to thank for Enron coming to OU. Keep me posted on what you work out
with HR with regards to summer interns.

"Hook Em"

Ted K. Jacobs
Director of Energy Management
The University of Oklahoma
307 West Brooks, Room 218
Norman, OK  73019-4007
(405)325-0758
Fax (405)325-2096
E-mail: tjacobs@ou.edu
Website: www.ou.edu/business/em

-----Original Message-----
From: Sally.Beck@enron.com [mailto:Sally.Beck@enron.com]
Sent: Friday, September 22, 2000 5:30 PM
To: Jacobs, Ted K
Subject: Oklahoma Trip

It was good to see you in Norman earlier this week.  As always, I
appreciated your attendance at the presentation and at Coach's afterwards.
I am sure that it is rewarding for you to see former students such as Jody
and Nate participating on the other side of the recruiting table.  You have
done a great job in changing and promoting the program.

I am pushing Lexi to resolve the question around interview dates for summer
interns ASAP.  I have also left Mike McConnell a message to make him aware
of the issue.  I should be able to get back with you next week, hopefully
with a change in our strategy!

If you do become aware of five OU /Texas tickets, please let me know.  We
will certainly purchase them, I just made the assumption that all tickets
may already be sold.

On another note, David has worn his OU shirt to work and has gotten lots of
compliments.  He has a number of people that have asked him about school
shirts, caps, etc.  Do you have a list of the schools that you can get
merchandise for and the types of merchandise that you can get?  Let me know
-- we can probably place a few orders through you!


Mike,

Just got back from vacation.  Can get info on Tuesday if it is not a moot
point by then.

Regards,

KJM

 -----Original Message-----
From:  McConnell, Mike
Sent: Wednesday, May 23, 2001 3:31 PM
To: Mcclellan, George; Mcgowan, Kevin
Subject: Coal information

Guys,

I had an interview with a reporter from the Economist yesterday.  He is doing
a big story on business changes, online changes, Jeff Skilling and Enron.
Coal came up a lot and i described my enthusiasm for our coal business and
our growth.  He wants to put some focus on the coal business and i need some
facts to get back to him.

What percentage of our coal transactions or business is online?
Speed changes on a typical transaction post and pre online?
Other changes you see or products to develop
International effects
Total coal moved (physical and financial) especially online
Other competing exchanges and why ours is better
Other proEnron facts that illustrate our growing business especially as it
relates to paradigm changes or online changes

Please feed me this info and if there is something specific that you don't
want me to say let me know that too but go ahead and give me the answer.  I
need this information pretty quickly.

Thanks,
m


Stephen Wallace received word last night that the CPIL lawsuit was
dismissed.  He got this word from our Delhi lawyers.   This concludes any
concerns regarding this CPIL case and any implications it could have on our
concessions in India.

This was a great effort from our legal and commercial teams.

jeff


Sorry, Jeff and I went to happy hour.


ISDA has confirmed January 18 as the date for the Board meeting in London.


Attached please find the memo I promised related to next steps.  Let me know.

JDS


Enron Global Travel Management (a division of Global Strategic Sourcing) is
pleased to announce that American Express Corporate Cardholders can now view
account details Online.

Highlights of this service include:
 Review previously billed, current, and unbilled charges
 Review corporate direct payments and personal payments applied to your
account
 Dispute a charge online, if needed
 Access customer service 24 hours a day, 7 days a week

To Log On to American Express Online Services:
GSS has prepared a special registration/log on page for Corporate Cardmembers
for your convenience.  To access it, go to http://travel.enron.com and click
on the Corporate Card button.

Cardmembers with cards issued within the last 45 days, need to call American
Express customer service to enroll.  The number is 1-800-297-1234.

If you have already registered your Personal American Express Card in the
American Express Online Services program:
Please click on the "Check Your Bill" link and login using your existing User
ID and password.  You will be able to add your American Express Corporate
Card to your existing registration by clicking on the "Update your Online
Profile" link which appears on the left hand menu bar once you are logged in.

We hope you enjoy using American Express Online Services.

For questions or additional information, contact Tracy Ramsey (Director,
Global Travel Management) at 713/853-6457.


Scott - You're done on Leo and Kevin.  They will come to you on the first
rotation.  Ted

 -----Original Message-----
From:  Neal, Scott
Sent: Thursday, April 19, 2001 4:35 PM
To: Ted C Bland/HOU/ECT@ENRON
Subject: new associates

these are the 2 guys I mentioned that we should put in trading rotations.
---------------------- Forwarded by Scott Neal/HOU/ECT on 04/19/2001 04:34 PM
---------------------------

Scott Neal
03/07/2001 11:55 AM
To: Andrea Richards/NA/Enron@Enron
cc: Chris Gaskill/Corp/Enron@Enron
Subject: new associates

Andrea,

The two gentlemen that I mentioned on my voice mail are Kevin Murray and
Leonidas Savas.  Both are from LSU and
start this summer as Associates.  Both have expressed their strong desire to
have their first rotation in Trading and I think they would
do a great job for us.   If you concur, please make a note to place them in
Trading for their first rotation .  I have attached both resumes for your
reference.

thanks,

Scott

 - new leo's resume.doc << File: new leo's resume.doc >>

 - resume1.doc << File: resume1.doc >>


Stinson,

Should we do it?

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 11/22/2000
08:08 AM ---------------------------

ARSystem@mailman.enron.com on 11/21/2000 07:04:54 PM
To: vince.j.kaminski@enron.com
cc:
Subject: Approval is Overdue: Access Request for stewart.range@enron.com

This request has been pending approval for  2 days and you are the
alternate.  Please click
http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000007876&Page=
Approval to review and act upon this request.

Request ID          : 000000000007876
Approver            : stinson.gibner@enron.com
Request Create Date : 11/20/00 2:36:29 PM
Requested For       : stewart.range@enron.com
Resource Name       : \\enehou\houston\common\Research - [Read/Write]
Resource Type       : Directory


Hi Nancy,

We are getting geared up to look at the interconnection agreement and work on
the land lease.  Just thought you might want to put it on the list of fun
things to do in the future.

Kay


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/24/2000
01:16 PM ---------------------------

Amy Aldous <aaldous@watarts.uwaterloo.ca> on 04/24/2000 12:11:18 PM
To: Vince.J.Kaminski@enron.com, David.Emanuel@Williams.com,
deng@isye.gatech.edu, cj@caminus.com, caom@qed.econ.queensu.ca,
wei@mgmt.utoronto.ca
cc:
Subject: Energy Derivatives Conference - Toronto, May 29

Details of the upcoming Energy Derivatives Conference are now posted at

http://www.arts.uwaterloo.ca/finance/edconf.htm

I look forward to receiving your papers by May 5.

Thank you,

Amy (for P.P. Boyle)

**************************************
Amy Aldous, Conference Co-ordinator
Centre for Advanced Studies in Finance
University of Waterloo
Waterloo, ON   N2L 3G1
Tel: (519) 888-4567 ext. 5728
Fax: (519) 888-7562
Email: aaldous@uwaterloo.ca
**************************************


---------------------- Forwarded by Kate Symes/PDX/ECT on 03/23/2001 10:37 AM
---------------------------

Mary Jane Symes <marys@tvapdx.com> on 03/23/2001 10:35:06 AM
Please respond to "marys@tvapdx.com" <marys@tvapdx.com>
To: "'kate.symes@enron.com'" <kate.symes@enron.com>
cc:

Subject: FW: The number one song the day you were born is your theme song for
life and. . .

-----Original Message-----
From: STEVE KAROLYI
Sent: Friday, March 23, 2001 10:29 AM
To: MARY JANE SYMES
Subject: FW: The number one song the day you were born is your theme song
for life and. . .

-----Original Message-----
From: slahaie@drmartensusa.com
Sent: Friday, March 23, 2001 8:32 AM
To: slaken@columbiaforestproducts.com; janet.rivera@theplatform.com;
dakotanorth2000@hotmail.com; stevek@tvapdx.com; lgibbs@stastnybrun.com;
sandyshalaby@hotmail.com; plahaie@freeway.net; lahaiebe@hotmail.com;
lukeduke03@hotmail.com; bevans@email.lhs.org; hkennedy@cmdpdx.com;
kristine.danzer@kimptongroup.com; mbillet@webtrends.com; neecie66@aol.com
Subject: The number one song the day you were born is your theme song for
life and. . .

 .

The link below will tell you  what that song was!

Have fun!

 http://www.thisdayinmusic.com/cont/choose.html>


Please check deal no. 500771 under Pinnacle West.  I thought Arizona Public
Service kept all transmisson.  Please let me know what you find out.


Please let me review final.  Thanks.  SS

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 01/10/2001 06:31 PM -----

	Robert Bruce@ENRON
	Sent by: Robert Bruce@ENRON
	01/10/2001 06:09 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject:

available for your cutting and pasting

Robert E. Bruce
Senior Counsel
Enron North America Corp.
T (713) 345-7780
F (713) 646-3393
robert.bruce@enron.com


FYI
---------------------- Forwarded by Mark E Haedicke/HOU/ECT on 01/07/2000
09:33 AM ---------------------------

Corrinne Greasley <CGREASLEY@isda.org> on 01/06/2000 02:17:07 PM
To: ISDA BOARD <BOARD@isda.org>
cc: Nick Collier <ncollier@isda-eur.org>, Robert Pickel <RPICKEL@isda.org>
(bcc: Mark E Haedicke/HOU/ECT)
Subject: Board Dinner

Dear Members of the Board:

The dinner for the Board of Directors will take place on January 26, 2000,
at 6:45pm (following the Board Meeting) at the restaurant listed below:

Quaglino's
16 Bury Street
London SW1Y 6AL
Phone: 171 930 6767

Quaglino's comes highly recommended by our resident restaurant critics so
the evening promises to be an enjoyable one.  Please confirm your attendance
by return e-mail if you have not already done so.

Thanks
Corrinne


Thanks.
Are you having any further luck on a counterparty for this IT from Williston/Rockies.
The PG&E legal guy is out this weeek!  Powell has had a call in since last week - no answer.  Perhaps they could have told us...  I waited for that contact before calling Ray.  Let you know.

What's the view on Nymex that you're getting down there - one month, winter, summer.   Thanks.

PS - Suncor/Sunoco 3 yrs verbal - I'll send you a copy of the note.

 -----Original Message-----
From: 	Tycholiz, Barry
Sent:	Tuesday, October 02, 2001 11:40 AM
To:	Le Dain, Eric
Cc:	Lucci, Paul T.
Subject:	RE: Suncor - Rockies Production

Yes, I will ask someone from Denver office to create package... Gas Management, Market Intelligence.. gas flows.. etc.

BT

 -----Original Message-----
From: 	Le Dain, Eric
Sent:	Tuesday, October 02, 2001 12:35 PM
To:	Tycholiz, Barry
Subject:	RE: Suncor - Rockies Production

Timely note, and once again I am already hard at work prospecting for you up here.
They are getting ready to drill CBM this fall. I've been meeting with them on this and actually set them up to do a deal with ATS on production/revenue/lease acctg in the US (next mtg Oct 9 in Calgary).  I gave them a presentation a few weeks ago on the general things we and ATS can do for them in Denver/Dallas.  I want to send them something more specific about all we can do in the Rockies on the gas mktg side.  I'll also build in some data on Hanover for them so will draw that from Producer One.
Can I get some general slides about all the good things Mark and the gang do in Denver.
Timing is next few days.  I'd like to get this to them by sometime Friday if possible (not the end of the world if it's early next week).
Thanks.

 -----Original Message-----
From: 	Tycholiz, Barry
Sent:	Tuesday, October 02, 2001 11:03 AM
To:	Le Dain, Eric
Subject:	Suncor - Rockies Production

Eric, did Suncor every get any drilling completed in the Rockies...?


Here at Enron the lawyers generate risk memos in connection with
transactions, summarizing the more important legal risks in a deal.  I've
been taking notes along the way, but I will be asking you for your thoughts
here shortly.  A discussion will be all I'm looking for at this time.

Thanks,

Kay


no topic, just updating everyone on where ENA is currently going and doing.
Come down and get free pizza.
Ben


Chris entered that this morning - 562978 - would you like me to back-date it?

Kate

Evelyn Metoyer@ENRON
03/28/2001 12:27 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: 3/27 Checkout

Kate what about the Chris Mallory deal?

PREBON
Chris Mallory
I am missing the following deal:
Enron buys from Duke Q2'01 25 mw of NP-15 at $180.00 off-peak hrs

   Kate Symes @ ECT                03/27/2001 04:50 PM

To: Evelyn Metoyer/Corp/Enron@ENRON
cc:

Subject: Re: 3/27 Checkout

PREBON
Matt Motley
562635

Jeff Richter
562556

Jeff Richter
562546 - corrected to 25 mw

BLOOMBERG
Mike Driscoll
562546 - Mike would like to keep this as Pinnacle for now because that is the
true counterparty - Bloomberg's system has not been updated

Tom Alonso
did not do this deal (he did a BUY  with the same terms)

Sean Crandall
562641

Evelyn Metoyer@ENRON
03/27/2001 02:32 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: 3/27 Checkout

PREBON

Matt Motley
I am missing the following deal:
Enron sells to Alleghany Q4'01 Palo Verde at $125.00 peak hrs

Chris Mallory
I am missing the following deal:
Enron buys from Duke Q2'01 25 mw of NP-15 at $180.00 off-peak hrs

Jeff Richter
deal 562546
Prebon shows 25 mw ....enpower has 23 mw

AMEREX WEST
All deals are fine.

BLOOMBERG      P.S. I am still confirming trades for Bloomberg.

Mike Driscoll
deal 562226
Bloomberg show cp name as Arizona Public Service Company....enpower has
Pinnacle West Corp.

Tom Alonso
I am missing the following deal:
Enron sells to El Paso 25 mw of April'01 PV peak hrs at $265.00

Sean Crandall
I am missing the following deal:
Enron buys from Pacificorp25 mw April MID-C peak hrs at $285.00


don't even worry about it.  i didn't feel jumped on at all.  the debate has
turned about 100% political with very little rational economic thought
present, unfortunately.


Ms. Jones,

May I get a copy of the above referenced Agreement or could you please tell
me where to locate it.  EAS would like me to send it to someone.

Thanks,
Ms. FitzGerald


Looks like the outage scheduled is postponed.

 -----Original Message-----
From: 	"Valentin Zapata" <vzapata@duke-energy.com>@ENRON [mailto:IMCEANOTES-+22Valentin+20Zapata+22+20+3Cvzapata+40duke-energy+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Friday, May 04, 2001 1:45 PM
To:	Kemp, Juliann
Subject:	Maintanence on HPL@Three Rivers

Julie this worked has been postponed to a later date, until further notice,
maybe next month.  Sorry for the inconvience, please pass on to you gas
control. Thanks, any questions please call me.


Steve,

Also as you requested.  We'll keep you updated with any/al changes as they
occur.

Gina


Kevin Presto

	Claudia Meraz
	10/25/2000 11:02 AM

		 To: Richard B Sanders/HOU/ECT@ECT
		 cc:
		 Subject: New Work Order for PCA Bankruptcy

Richard -

Per your request a Work Order will be opened for PCA Bankruptcy.  I need to
know who the business contact is for PCA Bankruptcy.

Thank you,

Claudia Meraz
Enron North America Corp.
Legal Dept. - Litigation Clerk
EB-3851B
(713) 853-9407 DID
(713) 646-3490 FAX


---------------------- Forwarded by Phillip K Allen/HOU/ECT on 02/23/2001
02:27 PM ---------------------------

Andrew_M_Ozuna@bankone.com on 02/21/2001 07:28:47 AM
To: Phillip.K.Allen@enron.com
cc:
Subject: Sagewood II

Phillip -

George Richards asked that I drop you a line this morning to go over some
details on the San Marcos project.

1.  First, do you know if I am to receive a personal financial statement from
Keith?  I want to make sure my credit write-up includes all the principals in
the transaction.

2.  Second, without the forward or take-out our typical Loan to Cost (LTC)
will
be in the range of 75% - 80%.  The proposed Loan to Value of 75% is within the
acceptable range for a typical Multi-Family deal.  Given the above pro-forma
performance on the Sagewood Townhomes, I am structuring the deal to my credit
officer as an 80% LTC.  This, of course, is subject to the credit officer
signing off on the deal.

3.  The Bank can not give dollar for dollar equity credit on the Developers
deferred profit.  Typically, on past deals a 10% of total project budget as
deferred profit has been acceptable.

Thanks,

Andrew Ozuna
Real Estate Loan Officer
210-271-8386
##


---------------------- Forwarded by Judy Hernandez/HOU/ECT on 05/09/2000
10:30 AM ---------------------------

	Enron North America Corp.

	From:  Maria Sandoval                           05/08/2000 04:17 PM

To: Andrea R Guillen/HOU/ECT@ECT, Phenicia Olivier/HOU/ECT@ECT, Bernice
Rodriguez/HOU/ECT@ECT, Melissa Rodriguez/HOU/ECT@ECT, Cassandra S
Dutton/HOU/ECT@ECT, Lorraine Becker/HOU/ECT@ECT, Angela Henn/HOU/ECT@ECT,
Melba Lozano/HOU/ECT@ECT, Chantelle Villanueva/HOU/ECT@ECT,
patty.soria@halliburton.com, elizabeth.gutierrez@eott.com, Judy
Hernandez/HOU/ECT@ECT, Elizabeth Soto/HOU/ECT@ECT, amolina@unifirst.com,
apena26@hotmail.com, Pamela Sonnier/HOU/ECT@ECT, Brenda
Barreda/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Yolanda Pena/Corp/Enron@Enron
cc:
Subject: Fwd: Tidbits

---------------------- Forwarded by Maria Sandoval/HOU/ECT on 05/08/2000
04:17 PM ---------------------------

Cassandra S Dutton
05/08/2000 02:38 PM
To: Maria Sandoval/HOU/ECT@ECT, Kathleen Speer/HOU/ECT@ECT, Cynthia
Shoup/HOU/ECT@ECT, Lisa Shoemake/HOU/ECT@ECT, Lorraine Becker/HOU/ECT@ECT,
Lisa Berg Carver/HOU/ECT@ECT, Andrea R Guillen/HOU/ECT@ECT, Willie
Harrell/HOU/ECT@ECT, Gerri Gosnell/HOU/ECT@ECT, Regina Perkins/HOU/ECT@ECT,
Linda Adels/HR/Corp/Enron@ENRON, Pamela Sonnier/HOU/ECT@ECT, Georgia
Fogo/HR/Corp/Enron@ENRON, Felicia Doan/HOU/ECT@ECT, Chaun Roberts/Enron
Communications@Enron Communications, Dana Davis/HOU/ECT@ECT, Elizabeth
Soto/HOU/ECT@ECT, iharrison@tmh.tmc.edu, vevans@tmh.tmc.edu, twest@tmh.tmc.edu
cc:
Subject: Fwd: Tidbits

---------------------- Forwarded by Cassandra S Dutton/HOU/ECT on 05/08/2000
02:38 PM ---------------------------

	Lisa Berg Carver
	05/08/2000 11:41 AM

To: lberg@fempartners.com, John.Carver@AGNA.Zeneca.com, Christy
Sweeney/HOU/ECT@ECT, Rebecca Cowart/HOU/ECT@ECT, Becky Caudle/HOU/ECT@ECT,
Gerri Gosnell/HOU/ECT@ECT, Cassandra S Dutton/HOU/ECT@ECT, Willie
Harrell/HOU/ECT@ECT, Ana Correa/HOU/ECT@ECT
cc:
Subject: Fwd: Tidbits

This is really great, it was through my mother's death that I was blessed
with meeting Tim. The Lord is faithful and so good to us !!

MOM'S LAST LAUGH.....

Consumed by my loss, I didn't notice the hardness of the
pew where I sat.  I was at the funeral of my dearest friend - my mother.

She finally had lost her long battle with cancer. The hurt
was so intense, I found it hard to breathe at times.

Always supportive, Mother clapped loudest at my school
plays, held a box of tissues while listening to my first heartbreak,
comforted me at my father's death, encouraged me in college,
and prayed for me my entire life.

When Mother's illness was diagnosed, my sister had a new
baby and my brother had recently married his childhood sweetheart, so it fell
on me, the 27-year-old middle child without entanglements, to take care of
her. I counted it an honor.

"What now, Lord?" I asked sitting in church. My life
stretched out before me as an empty abyss. My brother sat stoically with his
face toward the cross while clutching his wife's hand. My sister sat slumped
against her husband's shoulder,
his arms around her as she cradled their child.

All so deeply grieving, no one noticed I sat alone.

My place had been with our mother, preparing her meals,
helping her walk, taking her to the doctor, seeing to her medication, reading
the Bible together. Now she was with the Lord.

My work was finished, and I was alone.

I heard a door open and slam shut at the back of the
church. Quick footsteps hurried along the carpeted floor. An exasperated
young man looked around briefly and then sat
next to me. He folded his hands and placed them on his
lap. His eyes were brimming with tears. He began to sniffle.

"I'm late," he explained, though no explanation was
necessary.  After several eulogies, he leaned over and commented, "Why do
they keep calling Mary by the name of 'Margaret'?

"0h" "Because that was her name, Margaret. Never Mary. No
one called her 'Mary,'" I whispered. I wondered why this person couldn't have
sat on the other side of the church. He interrupted my grieving with his
tears and fidgeting.

Who was this stranger anyway?

"No, that isn't correct," he insisted, as several people
glanced over at us whispering, "Her name is Mary, Mary Peters."

"That isn't who this is."

"Isn't this the Lutheran church?"

"No, the Lutheran church is across the street."   "Oh."

"I believe you're at the wrong funeral, Sir."

The solemnness of the occasion mixed with the realization
of the man's mistake bubbled up inside me and came out as laughter. I cupped
my hands over my face, hoping it would be interpreted as sobs.  The creaking
pew gave me away. Sharp looks from other mourners only made the situation
seem more hilarious. I peeked at the bewildered, misguided man seated beside
me. He was laughing, too, as he glanced around,
deciding it was too late for an uneventful exit.  I imagined
Mother laughing.

At the final "Amen," we darted out a door and into the
parking lot. "I do believe we'll be the talk of the town," he smiled. He said
his name was Rick and since he had missed his aunt's funeral, asked me out
for a cup of coffee.

That afternoon began a lifelong journey for me with this
man who attended the wrong funeral, but was in the right place.

A year after our meeting, we were married at a country church where he was
the assistant pastor. This time we both arrived at the same church, right on
time.

In my time of sorrow, God gave me laughter. In place of
loneliness, God gave me love. This past June we celebrated
our twenty-second wedding anniversary.

Whenever anyone asks us how we met, Rick tells them, "Her
mother and my Aunt Mary introduced us, and it's truly a match made in heaven."

                       ------------------------

Jesus said, "if you are ashamed of me," I will be ashamed
of you before my  Father."

Not ashamed Pass this on . . . only if you mean it.

Yes, I do Love God.

 He is my source of existence and Savior. He keeps me
functioning each and everyday. Without Him, I would be nothing. Without him,
I am nothing, but with Him I can do all things, through Christ that
strengthens me.  Phil 4:13

If you Love God, and are not ashamed of all the marvelous
things he has done for you. Send this to ten people and the person who sent
it to you!


The tough question may be taking a long-term cash committment and transforming it into a single NPV payment (discount rate issues), assuming that is part of the options.

Jim

 -----Original Message-----
From: 	Boston, Roy
Sent:	Sunday, November 11, 2001 8:40 PM
To:	Rick Hill@ENRON
Cc:	jsteffe@enron.com; Migden, Janine
Subject:	Michigan Status re QFs

Rick -- As discussed, here is a brief updated status of the Michigan regulatory status as it pertains to QFs in the state.  In the debates over PA 141 we won several key points pertaining to OFs and agreements with utilities.  As you also know, the retail market will open 1/1/02 and MPSC decisions are expected within the next two weeks or so.  I have not covered the retail market because the previous status did not focus on that market segment.  If I can be of further help, please let me know.

 << File: MichRegStatus111001.doc >>


I've been thinking about this.  Due to limited battery life, calling areas etc, I'm not sure that a combination cell/pager is the way to go.  I'm thinking that blackberries may be worth looking into.
 -----Original Message-----
From: 	Enron Announcements/Corp/Enron@ENRON [mailto:IMCEANOTES-Enron+20Announcements_Corp_Enron+40ENRON@ENRON.com]  On Behalf Of Derryl Cleaveland- SR Director Global Strategic Sourcing Operations@ENRON
Sent:	Thursday, July 26, 2001 5:33 PM
To:	All Enron Houston@ENRON
Subject:	Enron Global Strategic Sourcing and Enron Net Works execute agreement with Skytel

Enron Global Strategic Sourcing, in collaboration with Enron Net Works, recently executed a two-year agreement with SkyTel Communications, Inc. to provide users with one- and two-way local and nationwide numeric/alphanumeric pagers, advanced messaging service devices, and encrypted remote e-mail services via Blackberry? enabled devices.

Under this agreement, Enron will also receive special discount incentives including, 50% discount on Blackberry?-enabled hardware purchases through year-end 2001, trade-in allowances on select Research in Motion (RIM) units through year-end 2001, upload and download of contact lists from select pc-compatible hardware to new RIM devices, customized training for hardware and services featured quarterly, and monthly service costs that will be billed at 50% of normal rates for a limited time.

Personal toll free numbers, personal voice mail, operator dispatched text messages, pin-to-pin messaging and text-to-voice and text-to-fax service options will be available on select devices, including Motorola T900 and  P935.

Effective August 1, please visit ibuyit.enron.com to order hardware or request activation.  If your business unit is not currently on iBuyit, please create an electronic order form on http://www.skytel.com/sipsnsf/enron.nsf/pages/requestpager?opendocument&login.  When you are prompted for a user name, please type: enron sip.  The password is skytel.

Hands-on demonstrations of various Skytel products will be conducted during "Blackberry Days" on July 31, August 1 and August 2 from 11:00 a.m. - 2:00 p.m. in the Enron Building lobby.  Additional information regarding Blackberry Days will be distributed soon.

If you have commercial questions regarding this agreement, please contact GSS Senior Contract Manager Tom O. Moore at 713-345-5552 or via e-mail at tom.o.moore@enron.com <mailto:Tom.o.moore@enron.com>. If you have technical questions, please submit them to blackberry@enron.com <mailto:blackberry@enron.com>.


Mark, I am not completely sure what the other groups want to do; however,
assuming a fixed amount of the "internal" legal costs are fairly represented
by this allocation as ENA's "capacity" charge, you are correct.  This number
will be in the P/L under your name.  The "outside" legal costs should be
tracked and controlled and carried at the business unit (by deal) level.   I
need an estimate of the quarterly "capacity charge" for ENA and an estimate
of outside legal costs by business unit.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 10/20/2000
12:57 PM ---------------------------
From: Mark E Haedicke on 10/20/2000 10:06 AM
To: David W Delainey/HOU/ECT@ECT
cc: Wes Colwell/HOU/ECT@ECT
Subject: 2001 Allocations

Dave:

I have attached the "time allocations" (which are used for inside costs only)
by attorney to the various business groups.  We can derive the percentage of
total legal department inside costs from this chart, in order to calculate
the capacity charge, for ENA and the other wholesale groups and ENW.  We had
used this chart to bill back to the various business units within ENA, but we
will stop doing that now per our conversation.  Are you in agreement?

Mark
----- Forwarded by Mark E Haedicke/HOU/ECT on 10/20/2000 09:17 AM -----

	Deb Korkmas
	10/20/2000 08:53 AM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc:
		 Subject: 2001 Allocations

See attached per your request.  Deb

Deb Korkmas
Enron North America Corp.
ENA Legal Dept.
1400 Smith Street, Room 3819
Houston, TX  77002
Phone:  713-853-5448
Fax:  713-646-3393


you goofball

go to www.snopes2.com , click on rumors of war, and then go to the first entry about halloween.

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Thursday, October 11, 2001 12:04 PM
To:	Angie Conner (E-mail); Ann Sutton (E-mail); Brad Fagan (E-mail); Cathy Pocock (E-mail); Chris Todd (E-mail); Christopher Smith (E-mail); Cindy Tarsi (E-mail); Dave Breish (E-mail); David Hutchens (E-mail); David Payne (E-mail); Elizabeth Jordan (E-mail); Eric Strickland (E-mail); Gayleen Barrett (E-mail); Ginger& Michael Brown (E-mail); Harriet Turk (E-mail); Herman Green (E-mail); Slone, Jeanie; Jerry Ward (E-mail); John Schilke (E-mail); Kathy Wright (E-mail); Karla Dailey (E-mail); Linda Ward Elam (E-mail); Lisa Rosenberg (E-mail); Melissa Reese (E-mail); Matt Mitten (E-mail); Mike & Rosalia Nolan (E-mail); Mike Wardell (E-mail); Monica Padilla (E-mail); Natalie & Bret Boehmer (E-mail); Sally McElroy (E-mail); Scott Connelly (E-mail); Shawn McElmoyl (E-mail); Stanton Scott (E-mail); Susie Lejune (E-mail); Theresa Cline (E-mail); Tina lovett (E-mail); Wayne Brown (E-mail); Wes Kersey (E-mail); Yonnie Waller (E-mail); Olinger, Kimberly S.; Brewer, Stacey J.; 'wenderachels@aol.com'; Semperger, Cara; Fuller, Dave; Lucci, Paul T.; Nemec, Gerald; Vann, Suzanne; Heintzelman, Pete; McDonald, Rob; Vint, Peter; Foster, Chris H.; Mainzer, Elliot; Wente, Laura; Platter, Phillip; 'sscastle@srpnet.com'; Gerard, Camille; 'jana.morse@dynegy.com'; Cross, Edith EES; 'george.denos@neg.pge.com'; 'brad.king@usa.conoco.com'; 'lawrence.pope@haliburton.com'; Arnold, John; 'lisabarnwell1@yahoo.com'; 'kward1@houston.rr.com'; Miller, Stephanie; 'tomd1966@yahoo.com'; 'antlulu2@aol.com'; Kennedy, Susan L.; 'ilandman@verizon.net'
Subject:	FW: FW: Forward Warning

 I received this email today from a very good friend of mine who has a lot of close friends from India.  This letter is to one of those close friends.  I don't know if I should pass it around but I want everyone I know to be aware.

Kim
> >
> >This is worth forwarding, just incase. . .
> >
> >========================================================================
> >===============================================
> >
> >PLEASE READ!
> >Subject: Malls on 10/31
> >
> >Hey guys..I dont want to scare anyone..but its better safe than sorry,
> >right?? This is not just a foward I recieved..Its from one of my
> >colleages at JPMorgan. It's been sent around within the firm, I wanted
> >to pass it on just in case.
> >Hi All -
> >I think you all know that I don't send out hoaxes and don't
> >do the reactionary thing and send out anything that crosses my
> >path.
> >This one,  however, is a friend of a friend and I've given it
> >enough credibility in my mind that I'm writing it up and sending it out
> >to all of you.
> >My friend's friend was dating a guy from Afghanistan up until a month
> >ago.  She had a date with him around 9/6 and was stood up. She was
> >understandably upset and went to his home to find it completely emptied.
> >On 9/10, she received a letter from her boyfriend explaining that
> >he
> >wished he could tell her why he had left and that he was sorry it
> >had to be like that.  The part worth mentioning is that he BEGGED her
> >not to get on any commercial airlines on 9/11 and to not to go any malls
> >on Halloween.
> >As soon as everything happened on the 11th, she called the FBI and has
> >since turned over the letter. This is not an email that I've received
> >and decided to pass on.  This came from a phone conversation with a
> >long-time friend of mine last night.
> >I may be wrong, and I hope I am.  However, with one of his warnings
> >being correct and devastating, I'm not willing to take the chance on the
> >second and wanted to make sure that people I cared about had the same
> >information that I did.
> >Laura Katsis
> >Implementation Specialist
> >714/921-5424
> >lkatsis@volt.com <mailto:lkatsis@volt.com>
> >OpsVolt_Track@volt.com <mailto:OpsVolt_Track@volt.com>
> >
> >
> >
> >--------------------------------------------------------------
> >Reminder:  E-mail sent through the Internet is not secure.
> >Do not use e-mail to send us confidential information
> >such as credit card numbers, changes of address, PIN
> >numbers, passwords, or other important information.
> >Do not e-mail orders to buy or sell securities, transfer
> >funds, or send time sensitive instructions. We will not
> >accept such orders or instructions.  This e-mail is not
> >an official trade confirmation for transactions executed
> >for your account.  Your e-mail message is not private in
> >that it is subject to review by the Firm, its officers,
> >agents and employees.
> >--------------------------------------------------------------
> >
> >
> >**********************************************************************
> >This e-mail is the property of Enron Corp. and/or its relevant affiliate
> >and may contain confidential and privileged material for the sole use of
> >the intended recipient (s). Any review, use, distribution or disclosure
by
> >others is strictly prohibited. If you are not the intended recipient (or
> >authorized to receive for the recipient), please contact the sender or
> >reply to Enron Corp. at enron.messaging.administration@enron.com and
delete
> >all copies of the message. This e-mail (and any attachments hereto) are
not
> >intended to be an offer (or an acceptance) and do not create or evidence
a
> >binding and enforceable contract between Enron Corp. (or any of its
> >affiliates) and the intended recipient or any other party, and may not be
> >relied on by anyone as the basis of a contract by estoppel or otherwise.
> >Thank you.
> >**********************************************************************
>
>
> _________________________________________________________________
> Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp
>
>


---------------------- Forwarded by Matthew Lenhart/HOU/ECT on 07/31/2000
02:15 PM ---------------------------

Chad Landry
07/31/2000 12:45 PM
To: aschott1976@cs.com @ ENRON, BGuilba@aol.com, Timothy
Blanchard/HOU/EES@EES, BT1329@aol.com, bcambr@lsumc.edu (Cambre, Brandon
C)@ENRON, Patrick Cannizzaro <patrick.cannizzaro@chrobinson.com> @ ENRON,
Christopher Coffman/Corp/Enron@ENRON, DWillou925@aol.com, Dave Estorge
<dave_estorge@yahoo.com> @ ENRON, brooke.e.baiamonte@us.arthurandersen.com @
ENRON, FIJI4x4@aol.com, val.generes@ac.com, "David Greenberg"
<David_Greenberg@sunbursthospitality.com>, Jennifer_Guste@breaux.senate.gov
(Jennifer Guste) @ ENRON, Becky Jenkins <becky.jenkins@headhunter.net> @
ENRON, Jessinbr@aol.com @ ENRON, Jeff Coates/HOU/ECT@ECT,
KrisLandry317@aol.com @ ENRON, Klandry47@aol.com, Ktlmsp@aol.com,
lcentol@lsu.edu, Matthew Lenhart/CAL/ECT, David Marye/HOU/EES@EES,
Jonathan_Matessino@mail.bankone.com @ ENRON, "Marcantel MM (Mitch)"
<MMMarcantel@equiva.com> @ ENRON, kbckk@aol.com (YOUR BEAUTIFUL MOM),
Opossum721@aol.com, Jennifer.Przelicki@chron.com, jpelti@lsumc.edu (Peltier,
Jacques C)@ENRON, Rclcerf@aol.com @ ENRON, SOffner24@aol.com @ ENRON, "Casey,
Ryan" <RCasey@tmmlines.com> @ ENRON, "Clement, Tam"
<Tam.Clement@mail.house.gov>, "DARRAH, SHAWN" <sdarrah@entergy.com> @ ENRON,
"Jambon, Kristy" <Kristy.Jambon@AlliedSignal.com> @ ENRON, "Jenkins, Jeffrey"
<jjenkins@velaw.com> @ ENRON, "Tankersley, Sarah A"
<Sarah_Tankersley@AIMFUNDS.COM>, Amy Baier <abaier@parkwayco.com>, Brother
Harold <brotherh@ststan.com> @ ENRON, "stacey steger"
<cajunqueen74@hotmail.com>, "Camila Pelaez" <camilapelaez@hotmail.com> @
ENRON, Charles Ray <chray111@yahoo.com> @ ENRON, "Don Mayley"
<cms1@bellsouth.net>, "Chris" <cpc25@email.msn.com>, Dana
<danamel@hotmail.com>, "Danny Boudreaux" <dannylsu@hotmail.com> @ ENRON,
dmayley <dmayley@psislidell.com> @ ENRON, "Corinne L Giacobbe"
<GIACOBBEC@jefferson.student.wlu.edu>, "Jodi Guillot" <jguillot@nopg.com>,
Jill Allen <jilallen@dttus.com>, "Ken Kilinski" <Kenk@kw.com>, michele beck
<michele@reliagene.com>, "Mike Toups" <mikebb@hotmail.com> @ ENRON, "M.
Mitchell Marcantel" <mmitchm@email.msn.com>, "Nicholas A. Danna"
<Nicholas.Danna@ey.com> @ ENRON, "paula rangel" <pjrangel@hotmail.com>, Ray
Latchem <rlatchem@fngas.com>, Shirley Elliott <shelliott@dttus.com>, David
Marks/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT
cc:

Subject: Its getting closer.

If you get a chance read the article below; but if you need a quick summary
b/c you don't have time to read the whole article here it is:

   "The Southeastern Conference is unequivocally the paragon of the college
football conferences-"

CKL

SEC TRADITIONS
                                           A weekly column by Chris Warner

                                           Perspectives on SEC Football and
Thoughts on
                                           the Impending Football Season

                                           I would like to kickoff this
column with a few choice quotes from the
                                           annals of a most colorful, and
telling, SEC gridiron history:

                                           "Southern football fans are
knowledgeable, fair and loud. They are proud
                                           of their football heritage, their
schools, and their teams. And they share a
                                           deep pride that goes with being
from the south" --George Mooney, the
                                           irreplaceable "Voice of the
Volunteers" in the 1950s

                                           "The true football fan pays no
attention to time or mileage when there is a
                                           big game to see." --John Heisman,
head coach, Auburn University

                                           "In Baton Rouge, the focal point
of everything is Tiger football." --Jim
                                           Corbett

                                           "In Baton Rouge, it's not a law to
love LSU, but the city fathers could
                                           probably get one passed if they
needed to." --Charles McClendon, head
                                           coach, LSU

                                           "After so many years at a school,
you become a member of the football
                                           family." --Bob Fulton

                                           "I don't care where a man comes
from or how he spells his name. All I
                                           ask is that he be loyal to
Georgia, proud of that jersey, and try like the
                                           devil to win." --Wally Butts, head
coach, Georgia

                                           "Deep inside, we're still the boys
of autumn, that magic time of the year
                                           that once swept us on to America's
fields." --Archie Manning

                                           "Tradition is a rich asset for any
team. Tradition and success are traveling
                                           companions." --Wallace Wade, head
coach, University of Alabama

                                           The above quotes were excerpted
from Criswell Freeman's "The
                                           Wisdom of Southern Football"
(1995).

                                           As football season creeps ever
closer, the avid enthusiast finds it difficult
                                           to contain the unbridled
excitement and anticipation that bubbles like
                                           summertime sweat within their
pigskin-thirsty souls. Football season is
                                           that special time of year that not
only means the beginning of another
                                           healthy slate of competitive
gridiron contests filled with spectacular plays
                                           and high drama--it's also the
definitive rallying point for the onslaught of
                                           all the expected pomp, pageantry,
and circumstance that goes
                                           hand-in-hand with the college
game. In no conference in the country is
                                           this statement more true than the
tradition-rich Southeastern Conference.
                                           The ongoing rivalries, the
colorful histories and traditions, the premier
                                           tailgating, the coquettish
southern bells in their gameday garb, the reunion
                                           of lasting friendships, and the
competitive fire and spirit that accompany
                                           the game, all make the entire SEC
football experience a very real, and
                                           visceral one--even to the most
casual observer.

                                           The Southeastern Conference is
unequivocally the paragon of the college
                                           football conferences, and the 2000
season figures not to disappoint the
                                           thousands of rabid fans that flock
to the stadiums each week throughout
                                           the southeast; as well as the
millions more who tune in from home on the
                                           tube to follow their respective
teams. Quite frankly, SEC football has
                                           never been bigger, or better. The
southern cultural phenomenon only
                                           continues to grow with each
passing season. The number of fans, and the
                                           competition that they long for
each and every weekend of the football
                                           season, has never been bigger or
better. In 1999, the SEC again set
                                           attendance records for its games,
and with the many recent expansions to
                                           existing stadiums in the
conference, those records should again fall at the
                                           end of this season.

                                           Five Reasons Tiger Fans Can Be
Excited About the 2000 Football
                                           Season

                                           1. Lou Tepper is no longer in
Tiger Town.

                                           Heralded by professional defensive
coaches as a "guru" and a "defensive
                                           genius" prior to his arrival at
LSU, the former Illinois head coach led the
                                           LSU defense to its worst two-year
performance in the history of the
                                           school (1893). If you are
interested in immortalizing the Tepper legacy at
                                           LSU for your scrapbook, copies of
his book "Complete Linebacking"
                                           can still be obtained (at a
discounted price no less) at most local book
                                           outlets. In Tepper's absence,
maybe the Tigers will return to the days of
                                           coach Charlie Mac and the standout
defensive units that were his
                                           trademark while at the Ole War
Skule. Speaking of Coach Mac, I caught
                                           up with him last week at his home
and he sounded as spry as a spring
                                           chicken. He told me that he is
doing great and that he enjoys cycling in
                                           the mornings to stay in shape.
Coach told me that he hopes that the LSU
                                           players have fun this year,
because, he said, "...having fun is what it's all
                                           about. If you can't have any fun,
you're in big trouble."

                                           2. Contrary to popular belief, the
Tigers are deep at quarterback.

                                           Preseason prognosticators have
cited the injury to Rohan Davey as a
                                           core reason why the Tigers will
have trouble at the quarterback position.
                                           They all opined early that both
Booty and Nall had difficulties leading the
                                           offense and that the injury to
Davey was a major setback to the Tiger
                                           offense. However, reports from
summer camp indicate that Rohan is now
                                           within 95-100 percent of his
normal range of motion on his knee, and in
                                           light of this it would appear that
the Tigers are again three-deep at the
                                           quarterback position. The
resurgence of Rohan is a tremendous boost to
                                           the team. Known for his leadership
ability both on and off the field,
                                           Rohan possesses the true grit that
wins ball games. I caught up with
                                           former LSU All-American and coach
Gaynell Tinsley at his Highland
                                           Road home a few weeks ago, and he
told me that he thought that
                                           Rohan's performance against
Arkansas was the best he had ever seen by
                                           an LSU quarterback. True frosh
Marcus Randall impressed in the LA
                                           High School All-Star game last
week, but he is a likely redshirt with the
                                           logjam of experienced competition
ahead of him.

                                           3. Nick Saban.

                                           Derided unfairly early by most SEC
media outlets as being "incompatible"
                                           with Louisianians' unique culture
and high football expectations, Saban is
                                           easily the best thing to happen to
LSU football since Kevin Faulk. A
                                           consummate professional, Saban
exudes confidence and paints a clear
                                           vision for the future of the
program. His presence in Red Stick has made
                                           an immediate impact on the
program, evidenced by the recent glowing
                                           comments at media days by seniors
Louis William and Fred Booker.
                                           Saban was also unfairly chastised
heavily by the media for his inability to
                                           bring any assistants with him to
LSU from his previous staff at Michigan
                                           State. However, Coach Saban
recently aptly stated at the SEC media
                                           days that only a couple of his
previous staff members had ever been
                                           "south of the Mason-Dixon line."
That notwithstanding, you cannot argue
                                           with the fact that Saban has
compiled a great staff of southern coaches.
                                           Tiger fans should find further
solace in the fact that coach Saban has
                                           never had a losing record as a
football coach.

                                           4. Trev Faulk & Bradie James at
Linebacker.

                                           All good defenses have a common
trait--great linebacking play, and you'll
                                           be hard-pressed to find two better
young horses than these two. Outside
                                           linebacker and pass rushing
specialist Jeremy Lawrence is another super
                                           sophomore to keep your eyes on.
These guys all have good wheels, and
                                           will put the leather on you when
they get the chance. James' number 11
                                           Faulk's recent acquisition of
Mealey's lucky 7 will undoubtedly prompt
                                           many fans and commentators to make
countless puns and jokes related
                                           to LSU's 7-11 linebacking duo.

                                           5. Predictions Don't Mean Diddly

                                           The other day I was scouring
through the many rolls of microfilm in the
                                           basement of Middleton Library at
LSU, and I stumbled upon this most
                                           interesting fact:

                                           In August, 1958, LSU was picked to
finish 8th out of 10 SEC teams.
                                           Auburn, which had won the national
championship the year prior with
                                           Shug Jordan, was picked to repeat
as conference champs, followed by
                                           Ole Miss and Mississippi State.

                                           Of course, in spite of the dismal
preseason ranking by the SEC
                                           sportswriters, the Bengal Tigers
went on to record their only unblemished
                                           season and national college
football championship to date. This story
                                           should only serve to encourage
fans that are despondent over the
                                           outcome of the past two seasons in
Tigertown. Anything can happen in
                                           the SEC, and remember, the old
adage says that "history repeats itself."

                                           Keep the faith Tigerfans!

                                           Until next time...


Carolyn --

Earlier this week, you received an email from the PEP team which included the
Performance Evaluations of your employees, both Exempt and Non-Exempt.
Please remember that the final Performance Evaluations should be completed
with your employees, forms signed and returned to me at EB1665B no later than
Friday, August 17th.

For your Non-Exempt employees, I have attached a spreadsheet listing all
eligible employees for whom you should complete a Performance Evaluation.
However, I need the rating for each employee so it may be input into the PEP
system.  The descriptions for Non-Exempt ratings are defined as:

1 - Consistently performs above expectations
2 - Meets expectations
3 - Does not meet expectations

Please indicate the ratings for each of your non-exempt employees listed
below and return to me no later than Wednesday, July 11, 2001.

NAME   TITLE  SUPERVSOR  DEPARTMENT  HIRE DATE MY2001 RATING
Hiler, Bessie  Receptionist Ms. Carolyn A Cooney Fed'L Gov'T Affairs
2/23/1998 ___________

Palmer, Germain Clerk I  Ms. Carolyn A Cooney Fed'L Gov'T Affairs 12/11998
___________

If you have any questions or need any additional information, please do not
hesitate to contact me.

Thanks for your prompt attention to this matter.
Jo Ann Hill
Ext. 3-0363


Sorry for the delay, I've been away from the office sick.

In response to your note:

UK = fine
Sweden = fine  (need to check the authority of persons executing PAs and ETAs)
France = fine.  Need to check on the type of entity to ensure close-out
netting is possible
Italy = restricted at the moment.  We have sought further advice.  Will
update in due course.
Netherlands = swaps only at the moment for financials.  This may change.

We have not done any due diligence for physical transactions, so the above
only relates to cash settled commodity derivatives.

Edmund

From: Tana Jones on 08/04/2000 04:42 PM CDT
To: Edmund Cooper/LON/ECT@ECT
cc:

Subject: Pulp & Paper

I've got  several European counterparties on my 8/3/00 ClickPaper Online
List, the UK, Italy, the Netherlands, Sweden and France.  Are there any
restrictions on trading financial pulp & paper in Europe?

Everything going well...?