Enron Shares Fall on Concern Over CFO's Partnerships (Update4)
Bloomberg, 10/19/01

USA: UPDATE 1-Enron stock sustains further heavy losses.
Reuters English News Service, 10/19/01
Enron Corp. Cut to `Hold' at A.G. Edwards
Bloomberg, 10/19/01

BANDWIDTH BEAT: Enron Broadband Unit Takes A Beating
Dow Jones Energy Service, 10/19/01
Dynegy Chief: Bandwidth Growth Won't Wait For Trading
Dow Jones Energy Service, 10/19/01
UK: Jobs in base metals down but definitely not out.
Reuters English News Service, 10/19/01
New Power Hldg Sees Meeting 3Q Loss Estimate
Dow Jones News Service, 10/19/01

Enron Shares Fall on Concern Over CFO's Partnerships (Update4)
2001-10-19 16:24 (New York)

Enron Shares Fall on Concern Over CFO's Partnerships (Update4)

     (Updates with Chief Financial Officer Fastow didn't
immediately return a call for comment in fifth paragraph.)

     Houston, Oct. 19 (Bloomberg) -- Enron Corp.'s shares have
fallen 26 percent in the past three days on concern the biggest
energy trader's dealings with partnerships run by its chief
financial officer contributed to investment losses.

     Enron's stock dropped 10 percent today. Enron's board cost
the company at least $35 million by allowing Chief Financial
Officer Andrew Fastow to manage LJM Cayman and LJM2 Co-Investment,
partnerships that bought Enron assets, a shareholder alleged
Wednesday in a lawsuit.

     The lawsuit came the day after Enron reported $1.01 billion
in third-quarter losses from failed investments. The Wall Street
Journal reported $35 million of the losses were connected with the
two limited partnerships. Enron also reduced shareholders' equity
by $1.2 billion when it bought back 55 million shares from the
partnerships, the paper reported yesterday.

     ``It looks sleazy,'' said Roger Hamilton, a manager at John
Hancock's Value funds, which own 600,000 shares. ``If you are
someone who invests in a company's management, it's almost time to
punt with Enron.''

     Enron spokeswoman Karen Denne didn't return calls or written
requests seeking comment. Fastow didn't immediately return a
telephone call for comment.

     Fastow and a handful of associates made more than $7 million
last year in management fees and about $4 million in capital
increases on an investment of about $3 million in one of the
partnerships, the Journal reported today.

                        Buying Enron Assets

     Fastow is involved in 17 other similar companies and
partnerships that appear to have ties to Houston-based Enron,
based on filings with the Texas secretary of state.

     The foreign business corporations and limited liability
companies have directors, officers or managers whose address is
listed as 1400 Smith Street in Houston, Enron's corporate address,
according to Texas records.

     Fastow is listed as a director, officer or managing member in
each one. At least one of the companies bought and sold Enron
assets, including foreign power plants.

     Whitewing Management, which lists Fastow as its managing
member, received $807 million from the sale of Enron debt last
year.

    Under the terms of the debt sale, Whitewing is allowed to use
the proceeds to buy power plants from Enron or make other
``permitted investments.'' Whitewing has bought 14 Enron plants or
companies since 1999 and sold four.

     Enron's Denne has not responded to written requests about
Fastow's role at Whitewing or whether he used his knowledge of the
value of Enron assets to benefit outside investors or company
executives at Enron's expense.

     Shares of Enron fell $2.95 to $26.05. They have fallen
69 percent this year.

--Russell Hubbard in the Princeton newsroom, 609-750-4651 or
rhubbard2@bloomberg.net, and Jim Kennett in Houston,
(713) 353-4871 or jkennett@bloomberg.net/pjm/alp/pjm

USA: UPDATE 1-Enron stock sustains further heavy losses.

10/19/2001
Reuters English News Service
(C) Reuters Limited 2001.

(New first paragraph, adds additional analyst comment)
By Andrew Kelly
HOUSTON, Oct 19 (Reuters) - Enron Corp. stock sustained further heavy losses on Friday as investor confidence in the former Wall Street favorite was rocked by reports about the company's relationship with a limited partnership that was run until recently by Enron's chief financial officer.
The energy giant's stock closed down $2.95 or 10.2 percent at $26.05 per share, making a cumulative loss of 27 percent for a week in which Enron reported a third-quarter loss of $638 million, its first quarterly loss in over four years.
Analysts said confidence was shaken by several articles in the Wall Street Journal this week alleging possible conflicts of interest on the part of Chief Financial Officer Andrew Fastow, who until recently ran a limited partnership that bought assets worth hundreds of millions of dollars from Enron.
"I don't think this thing passes the smell test," said one analyst who spoke on condition of anonymity. "I think the CFO should be out of there right now. In the interest of the stockholders, that CFO should be gone," he said.
Enron has rejected the suggestion that there was anything improper about the arrangements, but Fastow severed his ties with the LJM2 partnership earlier this year to allay concerns raised by investors and analysts about his dual responsibilities.
POOR JUDGMENT?
Analysts said that at the very least, the arrangement showed poor judgment by senior managers at Enron, which recently pledged to be more open with investors and analysts following a series of high-profile stumbles that culminated with the shock resignation of new chief executive officer Jeff Skilling in August.
"For a company that had a lot of question marks around it already, these questions about financial dealings are really worrisome for investors," said Commerzbank Securities analyst Andre Meade. "It points to poor decision-making on behalf of the board and top management at Enron," he said.
Enron, North America's biggest buyer and seller of natural gas and electricity, was one of Wall Street's high flyers last year, when its stock posted a gain of 87 percent.
The stock's ascent was driven by enthusiasm for the company's plans to build a broadband telecommunications business and the success of its EnronOnline Internet energy trading platform.
This year Enron's shares have fallen 69 percent as sentiment toward broadband and the Internet soured, Skilling resigned after only six months as CEO, and the company's Dabhol power plant project in India became mired in a payments dispute.
Moody's Investors Service said earlier this week that it had placed all of Enron's long-term debt obligations on review for a possible downgrade after Enron took $1.01 billion in write-downs and charges that substantially reduced valuations for several non-core businesses, including broadband and water services.
Some of Enron's financing arrangements require the company to maintain investment grade credit ratings.
Analysts said Enron's credibility has been severely damaged and the recent reports about the LJM2 partnership had raised concerns that more unpleasant surprises may lie ahead.
"What don't we know that went on at that company? Where's the credibility?" asked one frustrated analyst. "We don't know if it's limited to this," he said.

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

Enron Corp. Cut to `Hold' at A.G. Edwards
2001-10-19 16:27 (New York)

     Princeton, New Jersey, Oct. 19 (Bloomberg Data) -- Enron Corp. (ENE US)
was downgraded to ``hold'' from ``buy'' by analyst Michael C Heim at A.G.
Edwards & Sons Inc.

BANDWIDTH BEAT: Enron Broadband Unit Takes A Beating
By Michael Rieke

10/19/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

HOUSTON -(Dow Jones)- Early last year, Enron Corp.'s (ENE) hype and skyrocketing share price enticed a number of other energy companies into the telecommunications business.
Now investors are wondering whether Enron is leading the charge out of telecom.
The company announced Oct. 16 that its broadband unit lost $80 million before interest and taxes in the third quarter on revenue of $4 million. In the third quarter of last year, the unit lost $20 million on revenue of $162 million.
Enron also recorded a $180 million non-recurring charge for restructuring its broadband unit in the third quarter of this year. That amount included severance costs for cutting 400-500 jobs, loss on sale of inventory and the reduced value of Enron's content services.
At an analysts meeting Oct. 16, Enron Chairman and Chief Executive Ken Lay said the broadband business is "not that robust" right now. Industry revenue is low and there's substantial overcapacity in the bandwidth market, "more than even we anticipated," Lay said.
The company still has a problem finding creditworthy counterparties for bandwidth trading. Consolidation in the telecom sector has also eliminated potential trading partners.
"A year ago it looked like an excellent business to get into," he said. "Others thought so, too."
Looking back, Enron could have gotten into the broadband business with less capital, Lay said. It spent "too much too soon."
An Ominous Comparison

He compared Enron's move into telecom with its move into the water business with its Azurix unit. That comparison probably won't be good news to those who still have broadband jobs at Enron.
Azurix caused Enron to take a bigger writedown - $287 million - than broadband in the third quarter. The water business has been a bigger and longer-lasting headache than broadband.
Maybe Enron's surviving broadband employees will feel better knowing that Lay told analysts the company is exploring alternatives to preserve its play in telecom at a reasonable price so it will be ready when the business recovers.
It's trying to reduce general and administrative costs in broadband to $40 million a quarter and is on track to reach that goal next year, he said. It could cut those costs even more in order to sustain the business.
Meanwhile, the company is trying to determine which parts of the telecom business it wants to be in, he said.
Enron President and Chief Operating Officer Greg Whalley told analysts the company needs to determine how much network and hardware it needs.
At one time, they had thought that they wanted to use physical network assets as a springboard, Whalley said. Now they "wouldn't want to forever be in the network business."
Both executives mentioned the possibility of joint ventures in telecom. Lay said other companies are asking Enron to do them. Whalley said the company has talked about exchanging fiber and other assets.
The one part of the telecom business Enron still seems committed to is broadband intermediation. "Intermediation" is a term the company uses in most of its commodity businesses, said an Enron spokeswoman. It's a combination of trading and deal origination - wholesale and enterprise customers.
More Bad News Expected

Rebecca Followill, a research analyst for Howard, Weil, Labouisse, Friedrichs Inc., she had expected a larger writedown in broadband for the third quarter.
"If you look at how much the stocks of their peers in broadband have fallen, you've got to figure that their assets' values have fallen similarly," Followill told Bandwidth Beat. "I was expecting more like an 80% writedown in broadband."
Another analyst, who didn't want to be identified, said he also expects more broadband writedowns from Enron. "To the extent that they can take more writedowns, I think it would make eminently good sense to do it."
He predicted "a $200 million haircut" in the first quarter of next year because of a goodwill valuation issue.
And that might not be the end of it. Enron had a net of $948 million of broadband property, plant and equipment at the end of last year, he said. They had another $600 million of risk management asset receivables, inventories and working capital items.
Followill doesn't see much future in broadband for Enron.
"I think the business will shrink to the point where it won't be shown as a key sector in their reporting," she said.
Enron might keep a small broadband group in case the market rebounds, she said. Her investor clients don't expect broadband to contribute to Enron's earnings within the next three years.
She thinks Enron is looking for an exit strategy.
The other analyst said Enron is trying to preserve some value in broadband. "It doesn't look like there's any right now, to be honest," he said. "They'll carry the trading operation to some degree."
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@dowjones.com

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

Dynegy Chief: Bandwidth Growth Won't Wait For Trading
By Erwin Seba
Of DOW JONES NEWSWIRES

10/19/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Dynegy Inc. (DYN) Chairman and Chief Executive Chuck Watson understands why some think he is mistaken in believing the bandwidth sector has reached its bottom and is recovering.
But those critics don't understand his bandwidth business, Watson told Dow Jones Newswires in an exclusive interview. They don't understand how the business world has changed since the Sept. 11 terrorist attacks, he said.
In announcing third-quarter results for Dynegy Monday, Watson said the bottom in bandwidth demand was reached on Sept. 11 and that the market would begin recovery in the fourth quarter of this year.
Businesses are reassessing where to store data and how to distribute operations to avoid losing everything in a sudden catastrophic event, be it of natural or human origin. That's what's driving the recovery, he said.
Also, businesses will avoid travel, he said, relying instead on video conferencing.
Enron Corp. (ENE) Chairman Kenneth Lay said Tuesday that he hasn't seen any signs of recovery in telecom. The bandwidth market is suffering, in part, because there are few creditworthy companies to trade with, he said.
"They're trying to find trading partners for broadband," Watson said. "That's going to be tough to do." Dynegy isn't concentrating on bandwidth trading because there isn't "a realistic model" for it yet, he said. "I said two years ago it was at least two years away. I still think it's probably at least two years away, before we actually call it a trading commodity."
The metro-area infrastructure that Dynegy and other companies are building will create connections between networks, which are needed in order to trade bandwidth as a commodity, Watson said.
It's unfortunate that Enron's model for bandwidth as a traded commodity is the dominant image for the entire market, Watson said. Dynegy's model includes telecom contracts, negotiated directly with customers for long-term supply of bandwidth.
Dynegy's bandwidth trading desk is staffed by four people. For the past several months, they have been buying bandwidth for Dynegy's customers. The goal has been to build a customer base. "We're looking at being an intermediary, and really looking at the same customers that we feed energy today."
Since Dynegy lit its 16,000 route-mile network two weeks ago, the trading desk has been trying to fill the company's network instead of buying bandwidth from others. "I'm trying to find enterprises that have communication requirements," Watson said.
He pointed to ChevronTexaco Corp. (CHX) as a target for those services. "They have offices that never talked to each before," he said. "Now they've got to talk to each other. I would say that the credit quality of Chevron and Texaco is pretty reasonable."
ChevronTexaco owns about 26% of Dynegy, said a Dynegy spokesman. Dynegy and ChevronTexaco already have a large energy trading relationship which includes natural gas and gas liquids.
The average burn rate of Dynegy Global Communications, the corporation's telecommunications unit, is $20 million to $25 million a quarter, Watson said. In the third quarter, it lost $15 million, down from $20 million in the second quarter.
Dynegy predicts that Global Communications will break even or record a small loss before interest and taxes in the fourth quarter.
"If we can get to (income of) $10 million per month - that's what we need really," he said. "If we can get there by the end of next year, I'll be very happy. I think by '03, this market will have righted itself."
Watson believes telecommunications has the potential to transform Dynegy.
"Dynegy is an energy company," he said. "Our energy merchant company is doing very well and business is growing like a weed...(Telecommunications) is not our core business by any stretch right now. But I'd love to be able to tell you it's going to be. I'd love to be able to tell you it is someday."
-By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com

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

UK: Jobs in base metals down but definitely not out.
By Amanda Cooper

10/19/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 18 (Reuters) - Dismal industrial demand and the fickleness of hedge funds seduced by more volatile markets have slashed London Metal Exchange members' profits over the past year and set off a gathering wave of job cuts.
The decline and fall of base metal prices in the past year and a half has prompted a series of high-profile companies to withdraw from the market, casting a pall over next week's yearly LME Week industry gathering in London.
Jobs have gone from front office to back in trading houses and banks, raising questions about the prospects for those now seeking work.
"Good people can always be placed. As long as there is a job to fill and the company has a budget to hire," Sarah Gilley of London-based recruitment group Exchange Consulting said.
"Where the situation starts to get difficult is where everyone is cutting budgets, people are not being replaced when they leave and there have been an awful lot of redundancies."
Last week, ScotiaMocatta, a subsidiary of the Bank of Nova Scotia and a key ring dealing member, unveiled its decision to give up open outcry trading on the LME floor, prompting around 25 job losses among traders, phone jockeys and clerks.
Then blue-blooded banker N.M. Rothschild & Sons closed its London and New York base metals units. It left its core precious metals business intact, but 20 base metals staff were laid off in the process.
In the same week, the LME's largest floor trader, Enron Metals, said it planned to cut 10 to 20 percent of its metals staff as part of an exercise to cut 250 to 500 jobs in the Enron Group .
SECURITY
With three big market players and several major banks with commodities divisions slashing jobs at the same time, competition in the labour market will intensify and those in work are becoming wary about job security.
"What we're finding at the moment is that there is still demand for traders with a track record, which is possibly increasing because people are nervous about their jobs and so they're keen to stay put," Gilley said.
"So whereas someone who might be a big money-spinner with a track record would have previously stayed in their job for two to three years, they are now staying for three to five years.
"They probably feel that they're reasonably safe where they are, they're well recognised and not going to stick their necks out," she said.
BONUS FEARS
October has never traditionally been a strong month for the the jobs market in base metals as players are often distracted by LME week functions and conferences
Also, traders tend to be looking towards their annual performance-linked bonuses, which are usually announced at the end of the year.
"Those who are in work at the moment are sticking. Often at this time of year, people are hanging on for their bonuses. But I don't think any of them are anticipating good bonuses. They're probably just happy to have a job," Sian Griffiths of Exchange Consulting said.
LME volumes traded have been fallen over the past 18 months as the powerful hedge funds that once took a shine to the metals swarmed into areas such as hi-tech and telecomms stocks.
Metals traders who handled the large volume of fund activity have begun to focus again on moree traditional clients, and this may yet prove a boon for the jobs market.
Companies are seeking to fill a shortage of staff schooled in the traditional practices of trading physical metal.
"A lot of companies who had sidelined the traditional physical business are now re-aligning their focus and need poeple who understand the physical market and know how to set up a hedge and manage it, " Gilley said.
"The other area where demand has markedly increased in comparison to a few years ago is marketing," she added.
As for morale in the industry, individuals' confidence in their future is seemingly undimmed.
"Just because I've lost my job doesn't mean I'm going to sell my Porsche," one trader said.

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

New Power Hldg Sees Meeting 3Q Loss Estimate

10/19/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

PURCHASE, N.Y. -(Dow Jones)- New Power Holding Inc. (NPW) expects to meet its prior third quarter loss estimates; and said it has revised an agreement with Enron Corp. (ENE), lowering the collateral New Power must post under a master netting agreement.
In a press release Friday, New Power said the amendment to the Enron pact and cost-cutting efforts will allow the company to continue to conduct business until it secures ongoing asset-backed financing.
The company reiterated its earlier expectations of a third quarter loss of $65 million to $70 million, or $1.12 to $1.20 a share.
Analysts put the company's third quarter loss at $1.16 a share, according to Thomson Financial/First Call.
Third quarter revenue will be "slightly lower" than the $60 million to $65 million forecast in August, New Power said.

In the year-ago third quarter New Power lost $1.23 a share on revenue of $18.19 million.
The amendment to the master netting agreement with Enron North America Corp., Enron Energy Services Inc. and Enron Power Marketing Inc. affects the master cross-product netting, setoff, and security agreement, and expands through Jan. 4 the types of collateral that New Power is permitted to post to the Enron units.
Under the amended pact, the first $70 million of posted collateral must be in the form of cash, while amounts in excess of $70 million may consist of not more than $40 million of eligible receivables and inventory of New Power, valued at discounts specified in the amendment, and subject to a $25 million limit for October 2001.
Shares of New Power traded recently on the New York Stock Exchange at $1.67, up 1 cent, or 0.6%, on early composite volume of 7,900 shares. Average daily volume is 223,800 shares.
-Bill Platt; Dow Jones Newswires; 201-938-5400

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


Draft Agenda for those not able to attend the 4:00 PM (EDT) CA Energy
Working Group meeting today at Enron.

(See attached file: Agenda 042301.doc)

 - Agenda 042301.doc


The following deals have been taken to zero from 6/27/00 to 6/29/00 for the 3
Rivers outage.  Flow should resume on 6/30/00.

137939  12
202362  101
133263  42
296629  30
166810  30
133433  87
138426  918
133344  54
130865  246
137936  18
204859  1800
130510  381
279778  21
136275  70
139092  10
126330  41
125808  1405 (various points)
137632  60 (Various points)
137850  5
137858  1
138456  25
126335  612
138094  1265
93779  2677
266970  2812
113858  7000

Total  19,723


Did we get the right people to sign-up to speak?  Let me know.

Jim

-----Original Message-----
From: Lebeau, Paul
Sent: Tuesday, August 07, 2001 10:54 AM
To: Steffes, James D.; Howe, David
Cc: Herasimchuk, Alyse
Subject: FW: Georgetown MBA Finance Day

Jim & David,

Here is the info for the Finance Day on September 14th.  Phil Polsky, Associate, has revived confirmation from Chip Schneider and someone from his group in RAC to present at the Lunch.( I will forward those details as soon as I have them).  We are still needing someone to talk on the Panel.  Someone had suggested Kirk Nuener, I think he needs some convincing.

Thank you for your help.  I will keep you posted.

Paul L./ Recruiter

-----Original Message-----
From: Michael Chiang [mailto:mtc3@georgetown.edu]
Sent: Sunday, July 22, 2001 6:18 PM
To: Lebeau, Paul
Subject: Georgetown MBA Finance Day

Dear Mr. LeBeau,

Attached please find an invitation for Georgetown MBA's upcoming Finance Day.  We look forward to having Enron participate in this event, and I look forward to speaking with you soon.

Regards,

Michael Chiang


Maybe you guys were, but I wasn't aware that DWR was doing this.  Thus, the
IOU default on the ISO grows.
Sue

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 02/08/2001 11:11 AM -----

	"Ronald Carroll" <rcarroll@bracepatt.com>
	02/08/2001 11:05 AM

		 To: <acomnes@enron.com>, <jdasovic@enron.com>, <jsteffe@enron.com>,
<mary.hain@enron.com>, <smara@enron.com>
		 cc:
		 Subject: Fwd: DJ Calif/Power Purchases -2: DWR Ducking Its Duty -Reliant

----- Message from "Tracey Bradley" <tbradley@bracepatt.com> on Thu, 08 Feb
2001 09:19:53 -0600 -----
To:	"Paul Fox" <pfox@bracepatt.com>
cc:	"Andrea Settanni" <asettanni@bracepatt.com>, "Jeffrey Watkiss"
<dwatkiss@bracepatt.com>, "Ronald Carroll" <rcarroll@bracepatt.com>
Subject:	DJ Calif/Power Purchases -2: DWR Ducking Its Duty -Reliant
FYI - Testimony at the court hearing yesterday revealed that the DWR is
making the California ISO cover the difference between the real-time power
DWR finds appropriately priced and what the state needs to buy to prevent
blackouts.  The purchases by the ISO will then be billed to the state's three
IOUs, two of which are not paying their bills.

DJ Calif/Power Purchases -2: DWR Ducking Its Duty -Reliant
Copyright , 2001 Dow Jones & Company, Inc.

The issue came up in hearings on a lawsuit filed by the California
Independent System Operator, which runs the state's transmission grid,
against Reliant Energy (REI), which wants to be allowed not to sell power to
California if the state won't guarantee that it will be paid.

     Reliant is concerned that it won't be paid for power being bought by the
ISO on the utilities' - rather than the DWR's - behalf.

     "We're willing to sell to the DWR, but they're not willing to step up to
the plate," said Terry Houlihan, an attorney with Reliant. "The DWR has money
for short- and long-term power purchases. It can avoid the situation if it
does what the state Legislature said. Then there would be no need for a
restraining order."

     The court issued a restraining order Tuesday night requiring Reliant to
sell power to California Wednesday, then extended the order for another day
Wednesday night.

     The rapidly deteriorating creditworthiness of PG&E Corp. (PCG) unit
Pacific Gas & Electric Co. and Edison International (EIX) unit Southern
California Edison first left generators unwilling to supply power to
California in mid-December, when the U.S. Department of Energy intervened
with an emergency order requiring suppliers to deliver spare power to
California on demand.

     That order was extended several times, but expired Wednesday.

     Last week, the California state Legislature moved to secure the state's
power supplies by passing a bill authorizing the DWR to enter into contracts
to buy power and to finance those purchases by selling billions of dollars in
bonds.

     The idea was to shift power purchases to a buyer with better credit than
the utilities. While the bill didn't make the department responsible for
covering the state's power needs, the clear message from the governor, the
Legislature and the DWR was that the department would secure the power the
utilities couldn't buy on their own.

     That apparent mission might have been altered in the face of the state's
own mounting power bills, Maviglio said. The DWR has spent $40 million to $50
million a day buying power and has consumed around $750 million since it took
over the job in earnest on Jan. 17.

     According to testimony at Wednesday's hearing, the DWR has left it to
the California ISO to cover the difference between the real-time, or
emergency, electricity it finds appropriately priced and what the state needs
to buy to keep the lights on.

     The ISO, in turn, has been billing the state's three investor-owned
utilities for power it buys to cover the needs of their customers.

     "In emergency dispatches, the DWR has not agreed to pay a certain
price," said Jim Detmers, and operations officer at the California ISO. "If
the DWR does not agree that it will pay a certain price, then it will not
procure that power. The ISO will be forced to procure it. Then the ISO will
bill the utility wherever the power is needed."

     The utilities have together defaulted on hundreds of millions of dollars
in debt service obligations and power bills, and have said they would already
have run out of cash had they paid their bills on time.

     The volume of power left over by the DWR wasn't known.

     A spokesman for Southern California Edison said that, to date, the
utility is unaware that it's being billed for ongoing power purchases.
Pacific Gas & Electric wasn't available for comment.

     The ISO normally bills for power up to 60 days after it's delivered.

     The California Electricity Oversight Board, which oversees the
operations of the ISO, dismissed the generators' concerns, saying they were
threatening to withhold supply to gain leverage to force the DWR to sign
long-term contracts at high prices.

     The ISO, however, indicated that credit concerns remain an issue.

     "The credit issue is an ongoing problem," Detmers said. "Some generators
have indicated they would not supply California, because they are not being
paid."

     Steve Fleishman, an analyst at Merrill Lynch, said California needs to
take steps to alleviate those concerns.

     "In the end, there has to be a creditworthy party and someone who is
willing to pay to backstop this situation," Fleishman said.

     Said Reliant President and Chief Operating Officer Joe Bob Perkins in
letter to Gov. Davis Tuesday night, "Unless an immediate change in direction
occurs, the California ISO and the Department of Water Resources have set the
stage today for a return to credit-driven blackouts in California."

     The ISO argues that Reliant has contractual obligations to continue
supplying power to California.

     -By Jason Leopold, Dow Jones Newswires; 310-666-9986;
mailto:jason.leopold@dowjones.com(Andrew Dowell in New York contributed to
this article.)

     (END) Dow Jones Newswires 08-02-01


Boy did you call it 3 months ago....WE SHOCKED THE WORLD!!!!  What a great game.

I just wanted to thank you again for the great tour we had on Friday.  Everyone talked about it all weekend and we look forward to the expanding projects at the raptor center and hope to be able to help in those efforts.  It was great meeting you and I look forward to talking to you again in the future.

Thanks again.
PL

 -----Original Message-----
From: 	hendrix2@alumni.auburn.edu@ENRON
Sent:	Thursday, October 11, 2001 11:19 AM
To:	Love, Phillip M.
Subject:	RE: funds

I'm planning on it. In fact, I talked with Joe Shelnutt a little while ago
and reminded him I'm bringing you guys out there after 1 pm.

If you want, I can plan to meet you at Chuck's at 12:15 Friday.  How many
in your party?

sam

PS...After watching us the past 2 games and watching UF against LSU, I
revise my earlier prediction and now am thinking it is not going to be
pretty.


This is the schedule so far for Mr. Formaggio, who has asked to meet with someone in Enron to understand more about the general operation of a big pipeline (dispatching, the nomination and balancing operation, the allocation of measurement, and other major aspects of third-party-access implementation, including OBAs with interconnecting pipelines).

He was scheduled to arrive this afternoon, and will be staying at the Hyatt Regency.

Thursday, 8/23

9:00 through	Arrive at Enron.  He was given either Ginger Dernehl or myself as initial contacts.
   Lunch	Advise John Buchanan of arrival (X.37429).
	John will come to 47 to escort Mauro down to 41 for presentations by Lynn Blair and others about ETS gas logistics.
	Then Mauro will meet with Dannis Bellard for a tour of Gas Control.

3:30-4:30	Meet with Julie Gomez, VP of Long-Term Fundamentals-Gas

Friday, 8/24

11:00-12:00	Meet with Rick Shapiro and Jim Steffes, Government Affairs-The Americas

I am trying to arrange a meeting also with George Smith, either at about 2:00 on Thursday or on Friday morning.  He is a manager in the EWS logistics area who could talk about pipeline operation from the shipper perspective.


and the current slides you have on display I'll then do the updates to our slides and correct the errors.

Thanks


Lisa is a real hoot. Smart, tough as nails.  She pulls no punches.

Michael seems to feel better, but he has terrible circle under this eyes.
I'm going to insist that the doctor give him 3 rounds of antibiotics.  Being
a boy, it isn't so bad.  I just  know that the strep is hiding in his
sinuses, so a week after he gets off the antibiotics he gets sick again.

He slept until 800 today, and hour and a half later than usual.  I think that
must be his body healing.

He is so excited that 6 flakes of snow might fall tonight.

Paige wrote me today, said she is freezing (she's north of Austin).

Kay

From: Suzanne Adams@ECT on 12/12/2000 10:05 AM
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: E-Next Generation Assignment Documents and Schedule V

I just love Lisa, she's a little bulldog isn't she.

How is Michael feeling?  It's cold outside!

	Kay Mann@ENRON
	12/12/2000 09:29 AM

		 To: Suzanne Adams/HOU/ECT@ECT
		 cc:
		 Subject: Re: E-Next Generation Assignment Documents and Schedule V

Hi Suz,

Please print the exhibits and fax to me it home.

I thought you might enjoy this one.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 12/12/2000 09:26
AM ---------------------------

Lisa Bills
12/11/2000 11:16 PM
To: "Bunk, Sean" <seanbunk@akllp.com>
cc: <lisa.bills@enron.com>, <catherine.clark@enron.com>,
<kay.mann@enron.com>, <sheila.tweed@enron.com>,
<roseann.engeldorf@enron.com>, <mgocker@enron.com>, <sarah.wesner@enron.com>,
<toxley@winston.com>, <mmckay@velaw.com>, "Taylor, Rob"
<robtaylor@akllp.com>, "Popplewell, Tom" <tompopplewell@akllp.com>

Subject: Re: E-Next Generation Assignment Documents and Schedule V

why does LM6000 contract still have brackets around the number of turbines to
be assigned to WestLB?  Why does it still ignore the change orders rose asked
you to include?

why does schedule v to PA still ignore the change orders to the various
documents?

Please correct or advise why requests for changes are NOT being made.

As you know,  these documents are deliverables on Wednesday.  Blue Dog had
comments from the other side today.  Why haven't I seen a revision or been
asked if I agree with their comments?

Please do not operate in a vacuum without consulting me or Roseon
questionable issues.

Regards,  Lisa

"Bunk, Sean" <seanbunk@akllp.com> on 12/11/2000 07:46:53 PM
To: <lisa.bills@enron.com>, <catherine.clark@enron.com>,
<kay.mann@enron.com>, <sheila.tweed@enron.com>,
<roseann.engeldorf@enron.com>, <mgocker@enron.com>, <sarah.wesner@enron.com>,
<toxley@winston.com>, <mmckay@velaw.com>
cc: "Taylor, Rob" <robtaylor@akllp.com>, "Popplewell, Tom"
<tompopplewell@akllp.com>

Subject: E-Next Generation Assignment Documents and Schedule V

Attached please find revised drafts of the following documents:

1.  Purchase Option Assignment and Assumption Agreement (LM6000)
2.  Purchase Option Assignment and Assumption Agreement (Pastoria)
3.  Schedule V to Participation Agreement

Both a clean copy and a copy blacklined to show the changes from the
prior version are included for each of these documents.

Please feel free to call me if you have any questions or comments.

~~~~~~~~~~~~~~~~~~~
Sean Bunk
Andrews & Kurth L.L.P.
600 Travis St., Suite 4200
Houston, Texas  77002
Tel.:  713.220.4427
Fax.: 713.238.7252
e-mail: seanbunk@andrews-kurth.com

This e-mail is privileged and confidential and is intended only for the
recipient(s) named above.  If you are not the intended recipient, please
(i) do not read, copy, use or disclose the contents hereof to others
(any of the foregoing being strictly prohibited), (ii) notify the sender
immediately of your receipt hereof, and (iii) delete this e-mail and all
copies of it.

 <<Blackline 593717v3 to v2 (Pastoria Assignment).DOC>>  <<Purchase
Option Assignment and Assumption Agreement - Pastoria.DOC>>  <<Blackline
593834v4 to v3 (LM6000 Assignment - N.A.).DOC>>  <<Purchase Option
Assignment and Assumption Agreement (Turbopark - LM6000).DOC>>
<<Schedule V to Participation Agreement (TurboPark).DOC>>  <<Blackline
597234v2 to v1 (Sched. V - Turbo Park).DOC>>
 - Blackline 593717v3 to v2 (Pastoria Assignment).DOC
 - Purchase Option Assignment and Assumption Agreement - Pastoria.DOC
 - Blackline 593834v4 to v3 (LM6000 Assignment - N.A.).DOC
 - Purchase Option Assignment and Assumption Agreement (Turbopark -
LM6000).DOC
 - Schedule V to Participation Agreement (TurboPark).DOC
 - Blackline 597234v2 to v1 (Sched. V - Turbo Park).DOC


Mr. Sinha -

Unfortunately, Ken Lay will not be able to attend the May 16 dinner.  He also
has a conflict on September 28, the next meeting of the ISB Governing Board.

Rosalee

"Pramath Sinha" <pramath_sinha@isbindia.org> on 04/24/2000 11:11:25 AM
To: "Kok Peng Teh" <kpteh@gic.com.sg>, "Kenneth Lay" <klay@enron.com>,
"Jurgen Schrempp" <jurgen.schrempp@daimlerchrysler.com>, "Jurgen Dormann"
<jurgen.dormann@aventis.com>, "John Mack" <mackj@ms.com>, "James Schiro"
<james.schiro@us.pwcglobal.com>, "Jacob Wallenberg"
<jacob.wallenberg@enskilda.se>, "Henry Paulson" <henry.paulson@gs.com>, "Gary
Tooker" <gary.tooker@motorola.com>, "Daniel Vasella"
<daniel.vasella@group.novartis.com>, "Bon-Moo Koo" <hylee@office.lg.co.kr>,
"C. Boonstra" <c.boonstra@philips.com>
cc: "Pramath Raj Sinha" <pramath_sinha@mckinsey.com>,
<neeraj_bharadwaj@hotmail.com>
Subject: Invitation to ISB Dinner on May 16, 2000 in New York

Dear Governing Board member,

This is just let you know that three of our Board members - Victor Menezes
(Citibank), PC Chatterjee (The Chatterjee Group), and Uday Khemka (the SUN
Group of Industries) - are co-hosting a fund-raising dinner for the ISB on
Tuesday, May 16, 2000 in New York. While I understand this is short notice,
in case you are in New York on that date and also available for dinner, we
will be delighted if you could join us. Rajat, Dean Jacobs, and a number of
other Board members and supporters will also be there.

Please block off the date on your calendar and let me know if it is
possible for you to attend. We will be sending out a formal invitation in a
few days. Also, do let us know if you have any suggestions on who we should
invite for the event.

Please also note that the next meeting of the ISB Governing Board will be
held in New York on Thursday, September 28 from about noon to 6PM.

With best regards,

Pramath Sinha


Regarding the deal Chris Foster did on 4/6 with Sierra Pacific Holding Co. -

Bob Ellery, Sierra's Director of Energy Resources, and Steve Hall, one of
Portland's most expeditious lawyers, have decided to execute the deal under
the designation Sierra Pacific Industries, which is also named in the master
agreement. We still, however, need this name added to the counterparty list
in EnPower.

Thank you all for your help on this, and I appreciate your future assistance
in getting this deal out of the "New Counterparty" void.

Kate Symes
Trading Support
503-464-7486


I'm going to visit with the Hermanator briefly tomorrow.  Would you like to
join me?

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 08/23/2000 05:38
PM ---------------------------

Herman Manis
08/23/2000 05:33 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Re: VEPCO meeting

Let's do 2:30 tomorrow for 30 minutes in 3394.

To: Herman Manis/Corp/Enron@ENRON
cc:
Subject: Re: VEPCO meeting

Yikes.  Would you have just 30 minutes sometime during the afternoon
tomorrow?  I really struck out with everyone else for Friday.  Otherwise,
I'll be glad to schedule a meeting on Friday (in addition to this one
tomorrow) to review the structure with the various players.  You pick a time
(the earlier being better for me).

Thanks,

Kay

Herman Manis
08/23/2000 04:05 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Re: VEPCO meeting

I am already booked solid tomorrow afternoon on another deal.  Friday is much
better.

To: Christi L Nicolay/HOU/ECT@ECT, Mitch Robinson/Corp/Enron@Enron, Jeffrey
Keenan/HOU/ECT@ECT, Matthew F Gockerman/HOU/ECT@ECT, Herman
Manis/Corp/Enron@ENRON, Larry Soderquist/HOU/ECT@ECT, Heather
Kroll/HOU/ECT@ECT, Ozzie Pagan/HOU/ECT@ECT, John Moore/Corp/Enron@Enron
cc: Suzanne Adams/HOU/ECT@ECT
Subject: VEPCO meeting

Looks like Thursday at 300pm is working out for most people to meet to
discuss the VEPCO PPA. The meeting will be held in EB38C1.

Please let me know if you have any questions or comments.

Kay


Janet:

Attached is a first draft of the Consent and Amendment Agreement for Texaco, Inc.  Please circulate for gas and power.  Thanks.  Sara

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490


The following documents, received today, have been forwarded for your immediate attention:

Caribiner Securities Litigation; No. 99Civ.2271(GEL) and 99Civ.3379(GEL); In the U.S.D.C., S.D. of New York.  NOTICE OF PENDENCY OF CLASS ACTION, HEARING ON PROPOSED SETTLEMENT AND ATTORNEYS' FEE PETITION AND RIGHT TO SHARE IN SETTLEMENT FUND and PROOF OF CLAIM AND RELEASE to Enron North America Corp. by regular mail on 11/27/01.
		**DEADLINE FOR SUBMISSION:  DECEMBER 5, 2001**

PLEASE ADVISE IF YOU DO NOT RECEIVE WITHIN 1 BUSINESS DAY.

Thank you !!

Becky A. Stephens
Support Services Coordinator
Enron Litigation Unit, EB4809
713/853-5025
713/853-6576 (fax)
Becky.Stephens@enron.com


So I guess I'll be hearing from you when you need Confidentiality
Agreements.  So we'll still get to work together!

	Lisa Gillette
	05/30/2000 10:03 AM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: Re: No longer with EOL Product Control

I moving into Bob Shults group with EnronOnline Marketing.  So I am not
moving too far;  actually I am still going to be sitting at my current desk.

From: Tana Jones on 05/30/2000 09:56 AM
To: Lisa Gillette/HOU/ECT@ECT
cc:
Subject: Re: No longer with EOL Product Control

Where are you going?!

	Lisa Gillette
	05/30/2000 09:46 AM

		 To: Tom Moran/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Brant
Reves/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Anthony
Campos/HOU/ECT@ECT, Samuel Schott/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT,
Susan Flynn/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT
		 cc: EOL Call Center
		 Subject: No longer with EOL Product Control

Hello Everyone,

Just wanted to inform you that I am leaving EnronOnline Operations as of June
1st, 2000.  Please take my name off of your email distribution lists
effective immediately.  Stephanie Sever will be taking over my
responsibilities and handling all relevant issues.  I have enjoyed working
with you all.

Thank you,

Lisa Gillette


The referenced section are primarily names and addresses for invoices and
official notices.

I'll pass the other info along.

Thanks,

Kay

	Enron Global Finance

	From:  Catherine Clark @ ECT                           11/22/2000 09:13 AM

To: Kay Mann/Corp/Enron@ENRON
cc: Eric Boyt/Corp/Enron@Enron, Ben Jacoby/HOU/ECT@ECT, Stuart
Zisman/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT

Subject: Re: GE contract for the City of Austin project

Kay,
I don't have a copy of the GE contract, so I can't look at the sections
referenced below.  I do have:

Item #4 below:  I think the guaranteed delivery dates are the still the same,
as specified in the GE contract:
turbines 9,10,11 October 30, 2000
turbine 12 November 30, 2000
I haven't seen any change orders that amend the delivery dates of these 4
turbines.

Item #5 below: turbine unit/serial numbers
turbine 9 309266
turbine 10 309307
turbine 11 309376
turbine 12 309398

I've been talking to Rob Taylor at A&K regarding the Austin turbine
take-out.  I'll forward you the latest email on that topic.
-Catherine
x3-9943

Kay Mann@ENRON
11/22/2000 08:31 AM
To: Eric Boyt/Corp/Enron@Enron, Catherine Clark/HOU/ECT@ECT
cc: Ben Jacoby/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT, Sheila
Tweed/HOU/ECT@ECT
Subject: GE contract for the City of Austin project

Eric,

Has this info been provided to Andrews and Kurth yet?  It is needed to finish
the facility agreement for the LM's, especially if you are trying to move
these out of the existing contract on Monday.

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 11/22/2000 08:29
AM ---------------------------

Kay Mann
11/20/2000 10:49 AM
To: Eric Boyt/Corp/Enron@Enron
cc: pthompson@akllp.com, Stuart Zisman/HOU/ECT@ECT

Subject: GE contract for the City of Austin project

 Eric,  here are some questions from Peter, the AK lawyer who is working on
the contract. If you can respond by return email, Peter can keep this moving.

1.  Payee and Address for Invoices referenced in Section 6.7.2 of
the Agreement

 2. Section 6.7.1 Agreement reference [you might see if NEPCO has a reference]

 3. For the recitals, what is the kW capacity of its plant and where
is the plant located?

 4. According to the spreadsheet, the Guaranteed Delivery Dates for
Units 9-11 was 10/30/00.  The Guaranteed Delivery Date for Unit 12 is
11/30/00.  Are these still the dates we are using?

 5. Please provide the serial numbers for Units 9-12 for Section
10.2.1.

 6. Please provide the names, addresses, etc. for Sections 25.1 and
25.3

Thanks,

Kay


got it!!!!!


Hope it is going well out there.

Michael is sick (I'm guessing strep), so I'll be calling in from home today.

Kay


I thought of a great comeback for that one but since I haven't heard from you
in a while I am going to be nice


Bob:
I have left a message for Mark Haedicke about this and will let you know when
he responds but I expect that he will be okay with this.
Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com


Any thoughts on this question?
----- Forwarded by Richard B Sanders/HOU/ECT on 01/04/2001 10:46 AM -----

	Richard Lydecker@ENRON
	01/04/2001 09:08 AM

		 To: Richard B Sanders/HOU/ECT@ECT
		 cc: Julia Murray/HOU/ECT@ECT, Lisa Mellencamp/HOU/ECT@ECT, Travis
McCullough/HOU/ECT@ECT
		 Subject: Re: Want to Invest in a Steel Mill in Thailand?

Not only no, but hell no.  Once burned (badly), twice shy (exponentially).
The best and only development on NSM I would like to see is to get out the
litigation morass and (hopefully) be a little wiser next time.

Seriously, if the project does get reorganized (sans Enron additional
investment), what does that mean in terms of any potential recovery for the
existing debt?  Presumably any reorganization would come out of a bankruptcy
plan.  Any hope?

From: Richard B Sanders@ECT on 01/03/2001 06:11 PM
To: Julia Murray/HOU/ECT@ECT, Lisa Mellencamp/HOU/ECT@ECT, Richard
Lydecker/Corp/Enron@Enron, Travis McCullough/HOU/ECT@ECT
cc:

Subject: Want to Invest in a Steel Mill in Thailand?

I have attached an e-mail from Steve Howard, our atty in the NSM litigation.
Schultes is the original CEO of NSM.  Let me know if you are interested.
----- Forwarded by Richard B Sanders/HOU/ECT on 01/03/2001 05:57 PM -----

	showard@agsk.com
	01/02/2001 04:30 PM

		 To: richard.b.sanders@enron.com
		 cc:
		 Subject: Want to Invest in a Steel Mill in Thailand?

Schultes' lawyer has asked us if John can call an Enron business person
concerning a possible investment by Enron in some reorganized form of the
project that Schultes is pushing.  Think anyone at Enron is interested?  If
so, who?

We told the lawyer that John should not call unless we clear it with you
first.

Steve

................................................

ALSCHULER GROSSMAN STEIN & KAHAN LLP
ATTORNEYS AT LAW
www.agsk.com

2049 Century Park East
Thirty-Ninth Floor
Los Angeles, CA 90067-3213
Tel 310-277-1226
Fax 310-552-6077

This transmission is intended only for the use
of the addressee and may contain information
that is privileged, confidential and exempt from
disclosure under applicable law. If you are not
the intended recipient, or the employee or agent
responsible for delivering the message to the
intended recipient, you are hereby notified that
any dissemination, distribution or copying of
this communication is strictly prohibited.

If you have received this communication
in error, please notify us immediately
via e-mail at postmaster@agsk.com or
by telephone at 310-277-1226. Thank you.

...............................................


---------------------- Forwarded by Steven J Kean/NA/Enron on 08/22/2000
04:51 PM ---------------------------

"Elizabeth A. VanDersarl" <liz@luntz.com> on 08/22/2000 10:47:36 AM
To: "'skean@enron.com'" <skean@enron.com>
cc:

Subject: RE: Pro Regulation speech

Steve,

Attached please find the pro-regulation speech.  We have a studio reserved
between 4 and 5 PM today.  If it's possible to get comments on the speeches
before the conference call, we would really appreciate it.  I'll forward the
edited deregulation speech to you shortly.

Thanks,

Liz

 <<Pro-Regulation speech.doc>>

 - Pro-Regulation speech.doc


thanks, again, for calling me back last night!


What is the specific appeal of distressed debt? If you are going to trade debt or equities GS is the place to be.

 -----Original Message-----
From: 	"Jill Frizzley" <JFrizzley@Shearman.com>@ENRON
Sent:	Tuesday, August 14, 2001 2:51 PM
To:	Dorland, Chris
Subject:	RE: Interesting Read

Nicely done with the email.

What do you think of my next career move (still a few years away) --
distressed debt trader at Goldman Sachs.

I found a guy who will hire me and I think I want to do it (mostly 'cause
no chicks do), but will have to wait until I am willing to stop partying
until all hours during the week (i.e. a few years away).  You really do
have to come visit while I am here.  I can't see moving any time soon, but
that being said I am thinking about putting some time in in London and/or
Paris at some point, so we'll have to see.  Why don't you do your
Amsterdam/Paris/London trip in late Nov when I am thinking of doing
mine....those are the three cities I was thinking of hitting on mine
anyway.  We oculd meet up.  DIdn't know you were going to that wedding this
w/e.  Say HI to my parents for me.  And TOm and Vicky Liles.  And my little
bro.  Johnny Zuk is engaged too, hey?  Does Dan have a g.f.?  31 isn't too
old...Are you going to go visit her?  I should go save this company from
the depths o fbankrupt despair now.  LAter.

Chris.Dorland@enron.com on 08/14/2001 03:29:23 PM

To:   JFrizzley@Shearman.com
cc:

Subject:  RE: Interesting Read

Jill,

Sorry about the brief first reply things have been a little busy. What is
with people (that article) ? Working long hours just for the sake of
working long hours. I am pushing for a 4 day work week.
Why Calgary? Why not? I love Calgary. Actually the guy that ran our trading
operation in Calgary is getting married to an American who works in Houston
so he is moving to accommodate her career. This has left a hole in our
Canadian operation and my boss felt that I was just the cork to fill that
hole. I think it is a promotion. Besides, Houston in the arm pit of the
world. This city has few redeeming features. What it lacks in culture and
sophistication it makes up for by its lack of clean air and any form of
natural beauty. Actually, it isn't that bad. Houston has good restaurants,
decent night life and the people are really friendly but given the choice I
would much rather live in Calgary. In this business odds are that I will
find myself back here sooner than later so might as well enjoy Canada while
I can.

Kerrie got engaged. Good for her. I have a cactus in my bathroom that is
dying from lack of attention. I am not engaged. I was seeing someone for a
while but she took a work assignment in Venezuela. No big loss. Too old for
me anyway (31).

Glad to hear that you are enjoying you time in NY. I am going to have to
visit some time. I know I say that every time we chat but I really would
like to try to get down there before you move on to your next destination.
Or is NY home for a while?

No Vacation plans other than that I am going to Matt and Jen's wedding this
weekend. Should be a good party and I hung out with those guys quite a bit
when I was living in Calgary. Also I am going to look for a place to live
in Calgary in Friday. My friend Mohammed from TO is moving to Rotterdam to
do his MBA so I might try to visit him in the spring. Do a little
Amsterdam, Paris, London whirlwind tour.

My family is doing great. My dad sold Titan to a Comglomerate from the US
and is retiring in January and my mom is up to the same stuff. Dancing and
buying shit for their house. Both of their health is great. My dad has been
playing lots of golf and feeling great.

How is Meg doing? Is she in Australia now? I should get in touch with her.
I saw Reagan Neiss in commercial for her TV show last night. Good for her.
I hope all goes well for her. Dan did go to D's wedding. Said it was really
nice. Still don't get that one?

I have to stop writing now my fingers hurt. Keep in touch.

Chris

(this e-mail is record length for me)
    -----Original Message-----
   From:   "Jill Frizzley" <JFrizzley@Shearman.com>@ENRON
   Sent:   Tuesday, August 14, 2001 1:29 PM
   To:     Dorland, Chris
   Subject:  RE: Interesting Read

   That's it?  That's all I get after all this time?
   How are you?
   Good to hear you are excited to go back to Calgary, if that is where you
   are headed next.
   I am in Virginia at the moment working at client's office (a troubled
   telecom company; like they're not a dime a dozen).  Nice to stay in a
   hotel
   and live for free for a change.  For the past few weeks I have been
   living
   the life of a consultant, flying to VA for Tues through Thurs and in the
   office Mon and Fri.  I don't mind.  It's good for the pocketbook and for
   the frequent flyer points.  Plus it works out that I get all my weekends
   off that way.

   Why back to Calgary?

   Have you heard the big news?  It is only a few days old so I am sure you
   haven't, but Kerrie got engaged.

   Are you engaged?  Just asking because everyone but me is, it would
   appear.
   Any new news in that department for you?  I have started seeing someone
   new, but it is really casual and really new.  He is another lawyer and
   from
   St. Albert, Alberta of all places!  Met him at a cocktail part for
   Canadian
   lawyers working in New York.  Speaking of which, I am coming up on my
   one
   year anniversary of living here (and of having a real job) and am loving
   both living here and work.  No complaints.  Am off to my best friend
   from
   law school's wedding in Vancouver in Sept so I am taking a week off
   then,
   other than that no big vacay planned for the summer.  And you?  I do
   plan
   on going to visit a close friend who is moving to Paris in the fall so
   I'll
   likely go for American Thanksgiving, but that's about it.

   Meghan was here visiting when she was back in June.  Liles came to town
   the
   same w/e.  Shauna Snow (who is also engaged) and Jackie Boase came here
   for
   a visit as well in early May.  We had a blast, of course.  Liles came as
   well that w/e.  The parents made their first trip to the big city in
   March
   and had a fabulous time and have already planned their top ten things to
   do
   during their next visit.  It has been a good year for having people come
   visit (even though my dorm room at UofA was bigger than my apt, we all
   survived).

   How is your fam?  Dev said he was at Matt's stag party and Danny came
   home
   and surprised him.  That's cool.  I guess that wedding is this w/e.  Did
   he
   go to Dion and Suzanne's wedding?  My mom got a kick out of calling me
   to
   say she was going to my first ex-boyfriend's wedding that day.  What are
   Kent and Judy up to this summer?  How's their health?  (wasn't sure how
   to
   pluralize that).  How is Dan liking TO?

   There.  Now you have no choice but to write back a longer, more
   informative
   email.

   Later

   Hope you're well and not working too hard -- even early retirement isn't
   worth it!

   Chris.Dorland@enron.com on 08/14/2001 01:43:21 PM

   To:   JFrizzley@Shearman.com
   cc:

   Subject:  RE: Interesting Read

   For me it isn't about fulfillment or finding my life's purpose in my
   work.
   It's all about the $$$. Work hard and retire early.

   Cheers

   Chris

   P.S. I am moving back to Calgary in about a month. Enron continues to
   feel
   free to move me around at will. I am actually really looking forward to
   it.

       -----Original Message-----
      From:   "Jill Frizzley" <JFrizzley@Shearman.com>@ENRON
      Sent:   Thursday, August 09, 2001 12:32 PM
      To:     pkonieczny@bear.com; Nicole D Scaramelli; Bryn Jedlic;
                kelly.p.liles@accenture.com; kerrie.murray@telus.com;
                krista.weir@ca.pwcglobal.com; jon.p.hull@accenture.com;
                craig.d.stewart@accenture.com; pedeybird@hotmail.com;
                jesberry@hotmail.com; baileyj@coudert.com; Lisa Horvath;
   Denis
                R Rajotte; danderson@ingdirect.com;
   lisajean.lewis@gatx.com;
                jymiller@knightsbridge.com; darmstro@skadden.com;
                msveinson@van.fasken.com; daviesja@hotmail.com;
                barryr@torys.com; ryan.barry@torys.com;
   adam.s.cohen@gs.com;
                mohanlon@hotmail.com; daniel.bernstein@lakes.com;
                shane.pearson@blakes.com; rlinley73@hotmail.com;
                tmm@bdplaw.com; pberard@osler.com; Dorland, Chris;
                kimpersson75@hotmail.com
      Subject:  Interesting Read

      let's discuss next time we have amstel lights together.
      ---------------------- Forwarded by Jill Frizzley/NY/NA/ShS on
      08/09/2001
      01:21 PM ---------------------------

      Jolene Harvey
      05/22/2001 09:25 AM

      To:   Kara Irwin/LN/EU/ShS@ShSDOMAIN, Geraldine
      Idrizi/LN/EU/ShS@ShSDOMAIN,
            Peter Schwartz/LN/EU/ShS@ShSDOMAIN, Ward
      McKimm/LN/EU/ShS@ShSDOMAIN,
            Jill Frizzley/NY/NA/ShS@ShSDOMAIN
      cc:

      Subject:  Good Read

      about our lifestyle...
      ---------------------- Forwarded by Jolene Harvey/LN/EU/ShS on
      22/05/2001
      14:23 ---------------------------

      "COLLEEN MYERS" <colleen.myers@blakes.com> on 22/05/2001 14:08:54

      To:   "JONATHAN PIURKO" <jonathan.piurko@blakes.com>, "MARIO NIGRO"
            <mario.nigro@blakes.com>, <eyoung@osc.gov.on.ca>,
            <JHarvey@Shearman.com>
      cc:

      Subject:  Good Read

      (See attached file: TEXT.htm)

********************************NOTICE*************************************
      This transmittal and/or attachments may be a confidential
      attorney-client
      communication or may otherwise be privileged or confidential.  If you
      are
      not the intended recipient, you are hereby notified that you have
      received
      this transmittal in error; any review, dissemination, distribution or
      copying of this transmittal is strictly prohibited.  If you have
      received
      this transmittal and/or attachments in error, please notify us
      immediately
      by reply or by telephone (call us collect at +1 212-848-8400) and
      immediately delete this message and all its attachments.

      Thank you.
       - TEXT.htm << File: TEXT.htm >>

   **********************************************************************
   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
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   others is strictly prohibited. If you are not the intended recipient (or
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   delete
   all copies of the message. This e-mail (and any attachments hereto) are
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   a
   binding and enforceable contract between Enron Corp. (or any of its
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   be
   relied on by anyone as the basis of a contract by estoppel or otherwise.
   Thank you.
   **********************************************************************


Andreas,

I shall be glad to serve as the Chairman.
I am currently located in Enron N.A.

It stands for Enron North America. In Enron the orgchart changes every
3 months.

Vince

"Andreas Simou" <andreas@garpmail.com> on 09/20/2000 06:38:09 AM
To: <Vince.J.Kaminski@enron.com>
cc:
Subject: The GARP 2001 Convention

Dear Vince
?
I would like to invite you to Chair the stream on  Energy and Corporate risk
management at the GARP Convention. Is this something  that would be of
interest to you?
?
Also, can I please confirm, because I am having a  few IT problems at
present, that the following title is correct for  you:

Vince Kaminski, Managing Director, Research, Enron  Corp.
I look forward to your response in due course.
?
Kind regards
?
Andreas

____________________________
Andreas Simou
GARP 2001 - Conference  Producer
Tel? +44 (0) 20 7626 9301
Fax +44 (0) 20 7626  9900


Hey Tony!  I liked that.  Below is one for you too.  Just double click on the
1st web address below.  ENJOY!
---------------------- Forwarded by Dana Davis/HOU/ECT on 02/15/2001 10:07 AM
---------------------------

Daily-Blessings <dailyblessings@lists.postmastergeneral.com> on 02/14/2001
10:51:04 PM
To: dana.davis@enron.com
cc:
Subject: Daily-Blessings 2/15/01

Daily-Blessing
Mathematical Equation
http://www.daily-blessings.com/bless270.htm
Mathematical
Equation

Want to work from home?  Be your own boss, set your own hours....
http://www.daily-blessings.com/cjworkfromhome.htm
Work from
home

Need ink?  Buy from the folks that are reliable, low cost, and reputable!!!
http://www.daily-blessings.com/cjinkman.htm
Mr Inkman

<<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>>
* To remove yourself from this mailing list, point your browser to:
http://inbound.postmastergeneral.com/remove?dailyblessings
* Enter your email address (dana.davis@enron.com) in the field
provided and click "Unsubscribe". The mailing list ID is "dailyblessings".

OR...

* Reply to this message with the word "remove" in the subject line.

This message was sent to address dana.davis@enron.com
X-PMG-Recipient: dana.davis@enron.com
<<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>> <<<>>>


Thanks for your nice note.  I am pleased for all of us at the increased
recognition of the roles that we play within the organizaiton.  My ability to
do my job well is very dependent on those of you who play key roles in
operations.  Thanks for your part in that and for your continued support.
--Sally

	Enron North America Corp.

	From:  Brenda F Herod                           01/15/2001 04:25 AM

To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Promotion

Sally,

I am so excited for you and your promotion.  I have had the privilege to see
the impact you have made on this organization, and I am very glad to see you
get the rewards you well deserve.  You simply amaze me, and I have such a
tremendous amount of respect for you and your contributions and values.

CONGRATULATIONS!!!

Brenda


OK. Would like to be more reassuring that their will be a pool and ordinarily recurring is thing that drives pool.
 -----Original Message-----
From: 	Butler, Pam
Sent:	Tuesday, October 23, 2001 10:05 AM
To:	Joyce, Mary; Oxley, David; Pieper, Kalen; Cash, Michelle; Sullivan, Kriste
Subject:	FW: Q&A on Employment Agreements with Bonus/LTI Grants contingent on company meeting earnings targets

Just to clarify, for the annual incentive plan, the Board has discretion to make downward adjustments based on possible nonrecurring items or unordinary items.
 -----Original Message-----
From: 	Butler, Pam
Sent:	Tuesday, October 23, 2001 9:48 AM
To:	Joyce, Mary; Oxley, David; Pieper, Kalen; Cash, Michelle; Sullivan, Kriste
Subject:	Q&A on Employment Agreements with Bonus/LTI Grants contingent on company meeting earnings targets

I've had a question from an employee who just signed an employment agreement that provides a grant of stock options in 2002 subject to "Enron meeting its earnings targets" and who wanted to know whether it was based on recurring or non-recurring earnings.

The Enron Corp. Annual incentive plan specifically states that bonus funding is based on whether Enron meets after-tax recurring net income targets as determined by the Compensation Committee of the Board.  For long-term incentives, while we are not specific about this in any formal plan/program document, it is strongly recommended that the response to this question be:

"Enron's compensation programs have been established to reward employees for the Company's overall operating performance relative to pre-established annual performance measures including key financial goals.  In January of each year, the Board certifies the level to which the performance targets were attained for the prior fiscal (calendar) year and establishes targets for the upcoming year.  As such, Enron's compensation programs are discretionary in nature and the Board has the authority to consider unordinary or nonrecurring items events in determining whether awards are appropriate."

Let me know if you have any concerns.  Thanks.


Here are some samples of the articles I mentioned during our phone call

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

Enron's Bonds Tell the Tale: Stay Away
By Herb Greenberg <<mailto:hgreenberg@thestreet.com>>
Senior Columnist
RealMoney.com
10/24/2001 03:40 PM EDT
URL: <<http://www.thestreet.com/p/rmoney/herbonthestreet-rm/10002953.html>>

Updated from 2:47 p.m. EDT
If you ever have questions about whether a battered stock is cheap, check out its bonds. Bond analysts almost always know best because they're looking at the guts of a company -- the ability of a company to service its debt. If it can't service the debt, stockholders are at a greater risk of getting pummeled because debtholders always come before stockholders when it comes to getting paid.
Which brings us to Enron (ENE:NYSE - news - commentary) . The only reason to mention it is that some analysts are really reiterating buys based on its low multiple. (Low, fellas, is relative to reality!) Cramer today talks about his hunch that the stock is vulnerable because, as he says, "accounting irregularities = sell."
Good point. Now let's back that up with the bond market's view, which can be seen in the so-called "swap spread," which is bond-traderspeak for the spread between the LIBOR interest rate and the interest rate for comparable paper, or swaps. It's a benchmark bond traders use to determine risk. Tuesday, that spread on Enron's five-year notes was 650 basis points, or about 6.5 percentage points. Today, it's 1,000 points, or 10 percentage points. As one bond trader told me today, anybody would be crazy to pay that much. Another bond trader told another friend the same thing.
Why? As of June 30, Enron had cash of just $847 million and debt of nearly $13 billion.
And this observation: Those five-year notes currently yield more than 11%. That's a junk-bond yield for what is still rated as an investment-grade debt; anything more than 9% is considered ultra-high risk. So while you can make 11%, that's still not enough "where the accounting is questionable," one bond trader says. "You're not being adequately compensated for the fact that the company could default. You have to worry about your recovery value."
Not the kind of risk/reward an investor wants to see when the company in question still has a market cap of about $12.5 billion with a capital B.
Speaking of bonds and stocks: Even with its stock at about $1.16, Global Crossing (GX:NYSE - news - commentary) still has a market cap that exceeds $1 billion. But while its stock has rallied, its bank debt has stayed relatively flat at around 50 cents to 53 cents on the dollar. Similar stories can be told for XO Communications (XOXO:Nasdaq - news - commentary) , with a market cap of about $473 million and bank debt trading at around 52 cents on the dollar; Level 3 Communications (LVLT:Nasdaq - news - commentary) , with a market cap of $1.2 billion and bank debt trading at 66 cents; and McLeodUSA (MCLD:Nasdaq - news - commentary) , with a market cap of $462 million and debt that trades at 53 cents.
Where are opportunistic bond investors, who should be hopping on such cheap debt -- especially bank debt, which is at the top of the getting-paid-back food chain? They're nowhere to be seen, for the same reasons they're not jumping to buy Enron's bonds: Too much risk, because when companies like those go bad, their assets trade for less than the bonds are currently trading. (Try telling that to "hope-springs-eternal" stock investors!)
Providian pratfalls: Turns out an item here back in May was more fortuitous than it appeared. The item noted how institutional bond investors, who often pony up a slight premium to LIBOR to buy so-called credit default-protection insurance, couldn't find any at any price for Providian (PVN:NYSE - news - commentary) . The insurance is sold by investment banks such as J.P. Morgan Chase and typically involves a complex hedge of stocks and options that requires an investor to take the other side of the trade. If nobody'll take the other side of the trade -- or will charge a ridiculously high price to do so -- investors should beware. Which brings us back to Enron: It is possible to buy credit insurance, but at more than a whopping 1,000 basis points over LIBOR. Hardly a vote of confidence.

Waiting for the Other Shoe to Drop on Enron
By James J. Cramer <<mailto:jjcletters@thestreet.com>>

RealMoney.com
10/24/2001 10:33 AM EDT
URL: <<http://www.thestreet.com/p/rmoney/jamesjcramer/10002911.html>>

Accounting irregularities = sell. Those three words and an equals sign have always served me well. They remain squarely posted on the base of my quote machine, always in view. They have never let me down. When I have deviated from them I have had to pay severely, as I did when I ignored the accounting irregularities in Cendant (CD:NYSE - news - commentary) initially or when, because of my four-month holding period, I couldn't sell Qwest (Q:NYSE - news - commentary) .
Which is why I came in with guns blazing on this Enron (ENE:NYSE - news - commentary) , telling you to sell it. The stock has now lost half its value and all I can say is, I still can't see why you have to tempt fate and own this one. The notion that the businesses are fundamentally sound, that it has a great core business, is just hokum. Who the heck knows? Who has any idea of what this company can really earn? Who knows what it did earn?
All I know is that soon the drumbeat will be on from the Democrats that the Justice Department is playing political favorites by not pursuing Enron (noted Republican-giving company) for alleged fraud.
When that happens, when that shoe drops, wherever Enron is, then maybe it is worth some scrutiny.
But I bet I still won't like it.

Enron's Excuses Sound Familiar
By James J. Cramer <<mailto:jjcletters@thestreet.com>>

RealMoney.com
10/23/2001 01:43 PM EDT
URL: <<http://www.thestreet.com/p/rmoney/jamesjcramer/10002874.html>>
If you disclose something that is wrong, and you get accountants to check off that wrong deed, and outside lawyers to check off on that wrong deed, is it therefore right?
That's what Enron (ENE:NYSE - news - commentary) is asking us to believe. By telling us that its ridiculous dealings with the chief financial officer and his private partnership were all sanctioned by outside professionals, they have simply compounded the error. Next they will tell us that Janus, the largest shareholder, knew and wanted those partnerships to generate upside surprises!
What they are doing at Enron is, well, positively -- here we go -- '80s! In the '80s, you had all of these savings-and-loan jokers pleading that the outside accountants and lawyers checked off on massive chicanery. Somehow it was supposed to make the chicanery kosher.
Nope.
What it ended up doing was getting the lawyers and accountants in trouble. The government ended up going after them, too, for abetting the travesties.
Enron didn't use taxpayers' money, so it is arguably not as clear-cut. But the more we probe this Enron, the more we check it out, the more we know it really stinks and that Jeffrey Skilling didn't leave because the stock got hammered, or some other authentic Wall Street gibberish, but because of this nasty, unseemly situation.
We don't want an SEC probe here. We want a Justice Department probe. This isn't about unclear disclosure. This could end up being about fraud.
In the meantime, I wouldn't touch this stock with a 10-foot pole. This one's gonna get real nasty before it gets nice. If it ever does.

FOOL ON THE HILL
Enron's Disdain for Investors
The Motley Fool.com
10/24/01
While recent coverage of Enron centers on the CFO's past partnerships, a smaller -- and more obvious -- omission is what should really make individual investors turn the heat up on this company. Not only does it not release its cash flow statement during each quarter's conference call and press release, something we don't like but is prevalent, it also doesn't release its balance sheet. The company must think we're idiots. They're wrong.
By Tom Jacobs <<http://www.fool.com/About/staff/tomj.htm>> (TMF Tom9)
October 24, 2001
Enron's (NYSE: ENE) <<http://quote.fool.com/uberdata.asp?symbols=ENE>> troubles just don't stop. On Monday, the company announced <<http://www.enron.com/corp/pressroom/releases/2001/ene/70-LJMfinalltr.html>> that the Securities and Exchange Commission (SEC) had requested information on "certain related party transactions <<http://www.fool.com/specials/2001/sp010802e.htm>>." That was a veiled reference to partnerships until recently organized and directed by Enron CFO Andrew Fastow. There has been a flurry -- a hailstorm -- of financial media attention to this. There are only three possibilities, and none is palatable:
The company's board allowed this deal in order to -- using corporate speak -- "incentivize" the CFO, and it was not legal;
It was legal, but unethical; or
Enron has been less than forthcoming, perpetuating a pattern of disdain for investors and keeping them in the dark.
The accounting machinations involve mind-numbing terms and obfuscation, making a simple explanation of what is being alleged above my capacity to provide. The New York Times' Floyd Norris calls them "some of the most opaque transactions with insiders ever seen." That leads me to one conclusion when I think about burying myself with the company's SEC filings, accounting texts, my high-speed Web connection, and some beer: that of Shakespeare's King Lear -- "that way madness lies."
On the one hand, I know that pulling all this apart might teach me useful things about accounting, reading financial statements, and finding trouble. (To read what this is all about, check the "Certain Transactions" section of the company's latest proxy statement <<http://quote.fool.com/sec/sec.asp?date=03/27/2001&currTicker=ene&symbols=ene&guid=%7B5D0F1D1D%2D5DB7%2D4F4E%2D9BD9%2DFA154603F662%7D>>.) I fully intend to do that -- someday. For now, though, all I need to know about Enron as an investment is that the company has not made these issues transparent.
What's worse, though, is that Enron has made it a habit to keep investors in the dark, and not only about the potentially troublesome CFO issue. The company goes out of its way to hide its true financials. That really cheeses me off.
The quarterly call and press release parade
Most companies hold quarterly conference calls and simultaneously spew press releases (for which the companies pay good money to Business Wire and PR Newswire for dissemination) that allegedly state their latest quarter's numbers and talk about the business. Sometimes, when they have cleaned off their glasses enough for visibility and run it by their lawyers, execs will even venture to speak about the business climate ahead. At least thanks to Regulation Fair Disclosure <<http://www.fool.com/Specials/2001/sp010418.htm>> -- "Reg. FD" -- analysts don't get a secret call with the "real" numbers at another time than the public. We like that.
Perhaps in a world of pro forma numbers <<http://aol.fool.com/portfolios/rulemaker/2001/rulemaker010815.htm>> and EBITDA <<http://aol.fool.com/portfolios/rulemaker/2001/rulemaker010906.htm>> -- both of which Phil Weiss has skewered appropriately in past columns -- the calls and press releases could never be expected to be that substantive. That makes individual investors increasingly correct to greet such information with cries of "bullfeathers!" It only takes a few reviews of earnings press releases to make anyone a skeptic. The PR department carefully dresses them with spin, leaving the details for the fine print. Headline: "Earnings up!" (Revenues down 40%.) Headline: "Revenues up!" (Earnings down 40%.) The skullduggery of spin and pro forma mangles earnings to meaninglessness <<http://www.fool.com/news/foth/2001/foth010504.htm>>.
At least the conference calls themselves allow you a sense of managers as people and potentially some information about the business, but the financials are not helpful. Why?
Hiding the cash flow statement
Because almost every company gives up only part of the financial picture at call and press release time. If the income statement is increasingly unhelpful, at least the balance sheet tells you whether the company has increased or decreased cash, right? Well, not quite.
You really need the cash flow statement -- the best measure of how the company's business actually performs. Even then, you may need to make further adjustments <<http://aol.fool.com/portfolios/rulemaker/2001/rulemaker010906.htm>>. Yet the overwhelming majority of companies do not provide the cash flow statement at the call and press release time.
Check the companies you own. If they don't release cash flow statements with their earnings -- or, at least, prior to SEC filings, you should write and otherwise hound investor relations to push management to do so. Encourage your fellow investors to do so too, and tell the company that The Motley Fool sent ya. They will maintain that the numbers aren't ready at earnings time. Tell them to wait until they are. The numbers are certainly ready in time for the SEC deadline, and wouldn't we be happy to wait a week or two for the complete picture? Or, hey, why not do two releases -- one when the earnings are ready and another for the cash flow?
If not releasing the cash flow statement were Enron's only sin, it wouldn't be that big a deal. It has plenty of company. But this pre-Halloween < <http://www.fool.com/specials/2001/sp011024.htm>> scary tale gets worse. Unfortunately for Enron investors, the company does the hide-the-cash-flow-statement gig one better.
Hiding the balance sheet
For at least the last three quarters that I checked, Enron hides the balance sheet until SEC filing time. That's right: Not just the cash flow statement, but the balance sheet too. All they release is the income statement -- though, in truth, it does provide pages of income statement information for its many businesses. But why fail to release the balance sheet?
The only conclusion can be that management doesn't want to show its cash balances until it can slip them into SEC filings it thinks people won't bother to read. When questioners on a conference call earlier this year urged former Enron CEO Jeffrey Skilling to provide a balance sheet at earnings release, Skilling reportedly "called the questioner a common vulgarity that surprised many listeners."
Off his meds that day? Or a symptom of the company's attitude towards shareholders? Looks like the latter: Skilling's gone, but the practice hasn't changed.
It's about management
We don't depend on management for the numbers during the quarterly public calls and releases. A publicly traded company's financials will appear a few weeks later through its SEC filings available through our Quotes & Data page <<http://quote.fool.com/>>. No investor should be buying -- or holding -- stock in companies if they don't read their filings carefully. It's hard enough to discern what's going on in a business without doing so, and even in those filings -- such as with options grants to management -- the real meat is buried in footnotes. Not reading 10-Qs and 10-Ks is like getting married without dating, or buying a car by paint color only.
What Enron's failure to release this information says is that its management and corporate governance are sub-par. It says management is willing to hold these events, but it'll be darned if it'll present anything meaningful or make it easy for individual investors to find out anything other than management's spin. In Enron's case, its former CEO heaped abuse on someone who dared ask for a change. Does that make Enron's earnings releases circuses? Draw your own conclusion.
Is management listening? Perhaps. It hastily pulled together a conference call yesterday. TMF community member emschulze took notes <<http://boards.fool.com/Message.asp?mid=15974151>>:
"On call, analyst asks why no balance sheet with recent earnings release given company's previous claim that it will work to offer investors greater transparency in measuring its performance... response was that balance sheet doesn't normally come together until the week after its earnings release and that it will be included in 10-Q to be filed by Nov. 14... CEO indicates that it will do a better job of improving timing of release of earnings and balance sheet in future, implying that investors won't have to wait all the way until 10-Q filing deadlines to see balance sheet."
That's a good sign. But until the company makes an unambiguous commitment to provide the balance sheet at earnings time, Enron should be in the doghouse.
Good corporate governance means companies release all their quarterly financial statements and discuss them at the same time because today's income statements and pro forma numbers are borderline useless. If it means a delay or a second release to get the numbers together, what's the problem? Shareholders should demand no less. When a company trumpets an income statement, as Enron has, no one should be surprised when smoke appears. And perhaps much more.
Tom Jacobs (TMF Tom9) would like to improve his own cash flow statement. At press time, he owned no shares of Enron. To see his stock holdings, view his profile <<http://boards.fool.com/Profile.asp?uid=633241>>, and check out The Motley Fool's disclosure policy. <<http://www.fool.com/help/disclosure.htm>>

Bonds Of Troubled Enron Quoted In Dollars, Not Spreads
By Michael C. Barr

10/24/2001
Capital Markets Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)
Of DOWJONES NEWSWIRES

NEW YORK -(Dow Jones)- The bonds of embattled Enron Corp. (ENE) are trading on a dollar basis and not on a yield margin or spread to Treasurys - another sign of increasing investor skittishness about the once high flying energy trader.
The bonds, which carry investment-grade ratings, "started trading with a dollar price two days ago," said Gary Brown, managing director and head of corporate trading, Wachovia Securities, Charlotte, N.C.
Bonds are being offered at dollar prices in the high 80's to low 90's, say traders.
Investment grade bonds typically trade on a spread margin over comparable Treasury issues. "Credit bonds," which have questions about their quality, are traded in dollar quotes, said one analyst.
Moody's Investors Service rates the company's senior unsecured debt Baa1, but recently placed the debt on review for downgrade. Both Standard & Poor's Corp. and Fitch rate the debt triple-B-plus.
But the company "may be going into the double-B (non-investment grade) sector, " said Harold Rivkin, principal of H. Rivkin & Co., a distressed debt brokerage firm, Princeton, N.J.
"I am starting to get inquiry from investment grade holders about the market for Enron bonds," Rivkin said, noting that some high-grade portfolios can't have paper below investment-grade.
Houston-based Enron, the nation's biggest energy trader, recently announced a large third-quarter loss and an investigation by the Securities and Exchange Commission into a partnership arrangement that involves the company's chief financial officer, Andrew S. Fastow.
Enron has approached Citicorp (C) about obtaining a possible $750 million loan, according to a source close to the bank. But the source indicated Tuesday that nothing has proceeded past the preliminary inquiry.
The company's stock, while once a favorite of the investment community, has taken a pounding. It traded early this year at more than $80 a share. Late Wednesday, it was at $15.70 a share.
And, in a reflection of current investor sentiment, for the second time this week analyst Carol Coale of Prudential Securities downgraded the company to a sell recommendation from a hold. Her concern is "not because of the things we know but because of the things that we potentially don't know."

-By Michael C. Barr, Dow Jones Newswires; 201-938-2008; michael.barr@dowjones.com
(David Feldheim contributed to this article.)

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

USA: Group to put corporate directors under microscope.
By Kevin Drawbaugh

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.
WASHINGTON, Oct 24 (Reuters) - Directors of corporations will be graded according to their performance by a service expected to be launched soon by business research group The Corporate Library, the group's cofounder said on Wednesday.
In a move that could cause some sweaty palms in boardrooms across the country, long-time shareholder activist Nell Minow said directors will be awarded grades of A, B, C and lower, based on meeting attendance and other benchmarks.
"It's always been my dream to rate individual directors like bonds. Directors have not had the scrutiny they deserve," said Minow, who said the service will be called Board Analyst.
Planned as an added feature on an existing Web site, thecorporatelibrary.com, Board Analyst is still in testing stages but is expected to launch next year, she said.
Only directors of U.S. companies will initially be evaluated. Non-U.S. directors may be added later.
Minow and partner Robert Monks have written several books on corporate governance and shareholder rights. They formerly managed the Washington-based shareholder activist Lens Fund, which they sold last year to British fund management group Hermes.
Their latest venture may find a receptive audience on the institutional buy-side, said industry spokespersons.
"There's been growing interest within our membership in board membership, in general, and individual directors, in particular. I definitely think there would be interest in more information on individual directors," said Ann Yerger, spokeswoman for the Council of Institutional Investors, which represents America's large pension funds.
The corporate governance movement since its beginnings in the 1970s has focused on making directors more accountable and responsible. Many companies have responded by requiring more outside directors and more meaningful stock ownership among directors. But examples of lax board oversight still abound.
One example would be Enron Corp. , whose stock has plunged in recent days since the company said the Securities and Exchange Commission was investigating transactions involving certain outside partnerships and the company's chief financial officer, Minow said.
"Where was the Enron board in all of this?" she asked. "Boards and outside consultants are supposed to vet ideas for partnerships like these. That apparently didn't happen here."
Taking the corporate governance argument a step further, Minow argued that effective board membership is more than a theoretical question. It should be an issue for investors to evaluate when they consider buying stock in a company.
"This isn't just a corporate governance thing. This is part of investment analysis," she said.
Institutional investors routinely examine corporate management when analyzing stocks. Whether they will begin to examine directors, as well, remained an open question.
"Nell and Bob Monks have been shareholder activists for a long time and have moved corporate governance in a positive direction," said Peter Gleason, vice president of research and development at the National Association of Corporate Directors, which represents more than 3,000 corporate directors.
Surveys by the association recently showed that corporate directors rank self-evaluation high on their list of concerns. "More and more directors are saying this is something we should be doing," Gleason said.

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


Hi Gerald:  Nothing with or relating to Questar Regulated Services to the
best of my knowledge.
Kay

	Gerald Nemec
	06/13/2000 10:29 AM

		 To: Kay Young/HOU/ECT@ECT
		 cc:
		 Subject: CA Data Sheet

Kay, Please see attached.  Thanks.


See comments therein.  Please call me if you would like to discuss.

Billy

 -----Original Message-----
From:  Mann, Kay
Sent: Wednesday, April 25, 2001 7:12 PM
To: Fleenor, William
Cc: Manis, Herman
Subject: MDEA revised draft

Your esteemed colleague suggested I send this to you for your review.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/25/2001 07:10
PM ---------------------------

Kay Mann
04/19/2001 04:17 PM
To: Reagan Rorschach/Enron@EnronXGate, David Fairley/Enron@EnronXGate, Ozzie
Pagan/Enron@EnronXGate, Lloyd Will/HOU/ECT@ECT, Christi L
Nicolay/HOU/ECT@ECT, Tom May/Corp/Enron@Enron, Edith Cross/HOU/ECT@ECT, Jim
Homco/HOU/ECT@ECT, Edward Sacks/Enron@EnronXGate
cc:

Subject: MDEA revised draft

Here's the latest, not-yet-final-but-getting-better agreement.

I may not have sent this to everyone who needs it, but I know Reagan will
take care of it.  Speaking of Reagan, he is generating exhibits.

Kay


The Gas and Power Trading organizations have had a tremendous year.
Sometimes we as traders forget some of the crucial parts of the organization
that significantly contributed to that success.  I believe the Weather Group
comprised of Mike Robert's, Jose Marquez, Stephen Bennett and Dave Ryan from
Power are one of those groups.  These individuals have done a tremendous job
of predicting summer weather along with the route hurricanes would take.  The
greatest achievement has been the November and December winter forecast.
They held fast to their cold forecast even when outside services were
moderating.  On a score card with all other services they definitely deserve
an "A+".  When you are down on the 32nd floor it would be nice if you would
stop and congratulate them on a tremendous job and their contribution to our
success.

 Thanks,  Jim Schwieger


section 13.1 requires a letter of credit.

Carlos Sole'
Senior Counsel
Enron North America Corp.
1400 Smith Street
Houston, Texas 77002-7361

(713) 345-8191 (phone)
713 646-3393 (fax)
----- Forwarded by Carlos Sole/NA/Enron on 05/30/2001 09:01 PM -----

	Ann Elizabeth White@ECT
	05/21/2001 05:07 PM

		 To: Carlos Sole
		 cc: Kay Mann/Corp/Enron@Enron
		 Subject: Midway Project - Generic Interconnect Agreement

I'm leaving on vacation after tomorrow for 2 1/2 weeks and there's no way I
can get to this before I leave.  Would you please handle this for me in the
interim?  If not, please talk to Kay about who could handle this for Greg in
my absence.  It may just need to go to outside counsel.

Thanks!
---------------------- Forwarded by Ann Elizabeth White/HOU/ECT on 05/21/2001
05:06 PM ---------------------------

	From:  Christi L Nicolay                           05/21/2001 04:21 PM

To: Ann Elizabeth White/HOU/ECT@ECT, Carlos Sole/NA/Enron@Enron
cc:
Subject: Midway Project - Generic Interconnect Agreement

I will review this, but one of you needs to also.  Thanks.
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 05/21/2001
04:20 PM ---------------------------

Greg Krause@ENRON
05/21/2001 04:00 PM
To: Christi L Nicolay/HOU/ECT@ECT
cc: Ben Jacoby/HOU/ECT@ECT

Subject: Midway Project - Generic Interconnect Agreement

Please see attached for your review and comments.


Dear Ms. Siska,

On behalf of Mr. Jeff Skilling, I am responding to a request from Mr. Warren
Staley to forward to you the name of Enron's contact with regard to an
information exchange on leadership development between Enron and Cargill.
Mr. Skilling suggests that you call Mr. Steve Kean, EVP and Chief of Staff.
Mr. Kean can be reached at 713.853.1586 or via e-mail at
steven.kean@enron.com.

If I may be of further assistance, please do not hesitate to contact me.

Regards,
Sherri Sera
Assistant to Jeff Skilling
713.853.5984
713.646.8381 (fax)
sherri.sera@enron.com


V -

I spoke with Doreen this morning re: our San Francisco project. Please
forward info to her at

  doreen@magdalinweiss.com

Are you up fro brunch at my house on Sunday with Bill and Mary? Kathryn will
be home on midterm break

P -


---------------------- Forwarded by Mike McConnell/HOU/ECT on 10/19/2000
06:21 PM ---------------------------

Kevin Kuykendall
10/17/2000 02:07 PM
To: Patrick Wade/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, Jay
Fitzgerald/NY/ECT@ECT
cc:
Subject: Fwd: Texas.jpg

Gentlemen,

I thought that all good Sooners would enjoy this.  If you know of others that
I've left out, please forward it on.

Thanks,
KK
---------------------- Forwarded by Kevin Kuykendall/HOU/ECT on 10/17/2000
03:03 PM ---------------------------

John Petersen <jdpetersen@yahoo.com> on 10/16/2000 09:01:54 AM
To: jdpetersen@yahoo.com
cc: Bill Stewart <bipastew@oklahoma.net>, Myrna Pontious
<mkpontious@yahoo.com>, Kevin Kuykendall <kkuyken@ect.enron.com>, Kevin
<rev_kev@peakonline.com>

Subject: Fwd: Texas.jpg

Let's hear it  for OU.

?
 - Texas.jpg


don't want to exert any energy now that i have a "temporary' plate for the
harley.......vvvvrrrrroooooommmmm..............vvvvvrrrrooooommmmmm!


Mark, Tana asked me to send you an e-mail re-summarizing the d/b/a issue.

According to Illinois counsel, there is no quirk in Illinois law that
mitigates against being able to enforce a contract with a party who signs the
contract under a registered d/b/a name.   Since we have a copy of the
company's d/b/a filing certified by the Illinois Secretary of State, we
should already have everything we need.   In an abundance of caution, we
could ask the counterparty's corporate secretary to certify that "[actual
corporate name]" and "[d/b/a name]" are one and the same entity.  But I
personally think even doing that is overkill -- the Illinois Secretary of
State is already basically telling us that in the certificate we already have
in the file.

Feel free to call w/ any comments or questions.

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


FYI
---------------------- Forwarded by William S Bradford/HOU/ECT on 02/09/2000
07:31 AM ---------------------------

Michael R Brown
02/09/2000 03:23 AM
To: Ted Murphy/HOU/ECT@ECT
cc: Steve W Young/LON/ECT@ECT, Fernley Dyson/LON/ECT@ECT, William S
Bradford/HOU/ECT@ECT, John Sherriff/LON/ECT@ECT, Vince J
Kaminski/HOU/ECT@ECT, Rick Buy/HOU/ECT@ECT
Subject: Re: Credit Trading brought to you by Bryan Seyfried

I am happy that the legal issues have been addressed and discussed with Bryan
and John and I will sign off on the approval .
Michael

	From:  Ted Murphy                           08/02/2000 22:16

To: Steve W Young/LON/ECT@ECT, Fernley Dyson/LON/ECT@ECT, Michael R
Brown/LON/ECT@ECT, William S Bradford/HOU/ECT@ECT, John Sherriff/LON/ECT@ECT,
Vince J Kaminski/HOU/ECT@ECT
cc: Rick Buy

Subject: Credit Trading brought to you by Bryan Seyfried

My understanding is that Bryan will be in Houston to present his strategy
regarding credit trading for approval under an interim trading policy -
signed off by Jeff and Rick.  Before making any recommendation to Jeff, Rick
wants to be sure that the people on the list above are comfortable with the
activity and will be willing to signoff on the approval.  Given that Bryan
will be physically here, I am requesting that you E-mail your concurrence to
me no later than tommorrow.  Otherwise RAC will not present to Jeff for
approval.
Thank you for your help in puttting this together and making it a success!
Ted