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How Enron Blew It
Less than a year ago, the Houston-based energy behemoth had everything: money, power, glitz, smarts, new ideas, and a CEO who wanted to make it the most important company in the world. Now its stock is down, wall street is bearish, and the CEO is gone. What went wrong?
by Mimi Swartz </mag/issues/authors/mimiswartz.php>
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like the international headquarters of the best and the brightest. The lobby in no way resembles the hushed, understated entryways of the old-fashioned oil companies, like Shell and Texaco nearby. Enron, in contrast, throbs with modernity. The people hustling in and out of the elevators are black, white, brown; Asian, Middle Eastern, European, African, as well as American-born. They are young, mostly under 35, and dressed in the aggressively casual uniform of the tech industry-the guys wear khakis, polo shirts, and Banana Republic button-downs. Almost preposterously fit, they move through the building intently, like winners. Enron is nothing if not energetic: A Big Brother-size TV screen frantically reports on the stock market near a bank of elevators, while another hefty black television relaying the same news greets people entering from the garage. A sculpture of the corporate symbol, an E tipped at a jaunty angle, radiates colors as it spins frenetically on its axis; a Starbucks concession on the ground floor keeps everyone properly caffeinated. Multicolored, inspirational flags hang from the ceiling, congratulating Enron on its diversity and its values; one more giant banner between elevator banks declares Enron's simple if grandiose goal: "From the World's Leading Energy Company to . . . The World's Leading Company!"
For a while, that future seemed guaranteed, as Enron transformed itself from a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000. It was a Wall Street darling, with a stock price that increased 1,700 percent in that sixteen-year period, with revenues that increased from $40 billion to $100 billion. "The very mention of the company in energy circles throughout the world creates reactions ranging from paralyzing fear to envy," notes a 2001 report from Global Change Associates, a firm that provides market intelligence to the energy business.
This Enron was largely the creation of Jeff Skilling, a visionary determined to transform American business. Hired sixteen years ago as a consultant by then-CEO Ken Lay, Skilling helped build a company that disdained the old formula of finding energy in the ground, hauling it in pipelines, and then selling it to refineries and other customers. Instead, it evolved into a company that could trade and market energy in all its forms, from natural gas to electricity, from wind to water. If you had a risky drilling venture, Enron would fund it for a piece of the action. If you wanted your megacorporation's energy needs analyzed and streamlined, Enron could do the job. If you were a Third World country with a pitiful infrastructure and burgeoning power needs, Enron was there to build and build. Basically, if an idea was new and potentially-and fantastically-lucrative, Enron wanted the first crack. And with each success, Enron became ever more certain of its destiny. The company would be the bridge between the old economy and the high-tech world, and in February of this year, Skilling reaped his reward when he succeeded Lay as chief executive officer. Enron, says Skilling, "was a great marriage of the risk-taking mentality of the oil patch with the risk-taking mentality of the financial markets."
The Enron story reflects the culture that drove American business at the end of the twentieth century. Like the high-tech companies it emulated, Enron was going to reinvent the American business model and, in turn, the American economy. Maybe it was natural that this Brave New World also produced a culture that was based on absolutes: not just the old versus the new, but the best versus the mediocre, the risk takers versus the complacent-those who could see the future versus those who could not. The key was investing in the right kind of intellectual capital. With the best and the brightest, a company couldn't possibly go wrong.
Or could it? Today Enron's stock trades at around $35, down from a high of $80 in January. The press cast Enron as the archvillain of California's energy crisis last spring, and Skilling caught a blueberry pie in the face for his relentless defense of the free market. A long-troubled power plant project in India threatened the company's global ambitions. Telecommunications, in which Enron was heavily invested, imploded. Wall Street analysts who once touted the company questioned its accounting practices. Some of the change in Enron's fortunes can be attributed to the economic downturn in uncertain times that has afflicted all of American business. But the culture that the company created and lived by cannot escape blame.
ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about business-we got it." At Enron, in fact, you either "got it" or you were gone-it was as simple as black and white. It is not coincidental, then, that the color scheme of Skilling's River Oaks mansion mirrors the corporation he once headed. Here, the living room's white walls shimmer against the mahogany floors. Black leather trims the edge of snowy carpets. Billowy sofas set off the jet-black baby grand. In the entry, white orchids cascade from a black vase on a black pedestal table that in turn pools onto cold, white marble. There is only one off-color note: After almost twenty years, Jeff Skilling is no longer associated with Enron, having resigned abruptly after just six months as CEO. Once, Skilling was hailed as the next Jack Welch (General Electric's masterful CEO), as one of Worth magazine's best CEO's in America (anointed in 2001), and even as a daredevil who hosted the kind of unchained adventure junkets in which, a friend told BusinessWeek, "someone could actually get killed." Today, he sounds more like Ebenezer Scrooge on Christmas morning. "I had no idea what I'd let go of," Skilling says of all the personal sacrifices he made while retooling Enron.
From a black chair in the white library, across from a huge black and white photograph of his daughter and two sons, Skilling clarifies. The demands of working 24-7 for Enron caused him to ignore his personal finances. Divorced, he lived in a 2,200-square-foot house without a microwave or a dishwasher. He almost missed his brother's wedding. "Learning a foreign language-I never learned a foreign language!" he exclaims. He never once took his youngest son to school. "I'm interested in the kids. You don't do kids in fifteen-minute scheduling." Travel: "You can't go to Africa for a week and get anything out of it!" Skilling includes the study of architecture and design on his list of missed opportunities, then he stops and sighs. "I'm not sure that fulfillment in life is compatible with a CEO's job," he says, finally. Then his eyes lock on mine, and his voice, which had softened, regains its pragmatic edge. "It would have been easy to stay," he says. "But that would not have been good for me."
He's a smallish, ruddy-faced man who keeps himself at fighting weight, handsome in the way of corporate titans, with piercing cheekbones and that assiduously stolid gaze. But the impatience Skilling once reserved for cautious underlings and dull-witted utility company executives is now targeted at reporters who have labeled his resignation "bizarre" and associates who are bitterly skeptical of his need for family time. His shrug stretches the limits of his shimmering blue button-down, and his matching blue eyes look put upon. "I'm surprised," he says, "that people have so much trouble understanding this."
PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early nineties couldn't help but notice a funny and, for its time, novel scene unfolding throughout the workday at the base of the Enron Building. From nine to five and before and after, you could see people slipping out of the pristine silver skyscraper to smoke. They perched on the chrome banisters or lurked near the glass doors at the entry, puffing like mad. They always looked hurried and furtive, even ashamed. Whatever people knew about Enron in those days (and most people didn't know much), it was often associated with that scene: Enron boasted one of the first nonsmoking corporate headquarters in Houston, and there couldn't have been clearer evidence of its break with the energy world of the past. What macho engineer would have put up with such humiliation?
But this company was a child of another time, that period in the mid-eighties when chaos enveloped the gas business. Federal deregulation of natural gas turned a steady, secure industry, in which gas pipeline companies frequently enjoyed a monopoly in portions of the areas that they served, into a volatile free-for-all. The situation was compounded five years later by federal deregulation of the pipeline business. So it happened that a gentlemanly gas pipeline company, Houston Natural Gas (HNG) found itself under attack from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG was then run by Lay, a sturdy, taciturn former economics professor and Transco chief operating officer who had a passion for military strategy. (His doctoral thesis at the University of Houston was on supply and demand in the Vietnam War.) Lay, who was from Missouri and never succumbed-at least outwardly-to Texas brashness, had done well enough: Thanks to canny expansions, HNG's pipelines stretched from Florida to California and throughout the state of Texas.
HNG fended off Coastal, but to protect the company from other takeover attempts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska pipeline concern called InterNorth, one of the largest pipeline companies in the country at the time. Then, a funny thing happened: HNG started acting in a way that would characterize the company for years to come-a lot like Coastal. What the Nebraskans blithely labeled "the purchase" was being called "the merger" back in Houston, and before long, following some particularly brutal politicking between Omaha and Houston, the company's center of gravity started shifting toward Texas, and shortly after that, Ken Lay was running a new company called Enron. "Over time it became clear that Lay had a better vision of the future," says one person associated with Enron at that time. "He never fought change. He embraced change."
Lay had won, but what exactly did that mean? Enron was saddled with massive debt from the takeover attempt, and thanks to deregulation, no longer had exclusive use of its pipelines. Without new ideas-for that matter, a whole new business plan-the company could be finished before it really even got started.
LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling had spent a lot of time in the Midwest, and he was self-made-at fourteen he had been the chief production director at a start-up TV station in Aurora, Illinois. (His mother would drop him off there every day after school.) "I liked being successful when I was working, and I was smart," he told BusinessWeek earlier this year. But unlike many of his Enron colleagues, Skilling wasn't deliberate and soft-spoken and happy to go home at five o'clock; he was anxious and excitable, and nothing, but nothing excited him more than what he would come to call "intellectual capital." He loved being smart, and he loved being surrounded by smart people. He graduated from Southern Methodist University, went into banking-assets and liability management-and took on Harvard Business School, where he graduated in the top 5 percent of his class. Then Skilling took the next step on what was then the new, souped-up path to American success: He joined Manhattan's McKinsey and Company as a business consultant, and that is where Ken Lay found him in 1985.
It is often said of Lay that his instincts for hiring the best are flawless, and his choice of Skilling probably saved the company. Skilling was above all an expert at markets and how they worked. While everyone else was worrying about the gluts and the shortages that defined the gas industry, he alone saw the parallels between gas and other businesses. And so in a world where credit was nearly impossible to come by, Skilling came up with what he called the Gas Bank, which contractually guaranteed both the supply and the price of gas to a network of suppliers and consumers. Enron would not be a broker but a banker. It would buy and sell the gas itself and assume the risk involved. And Enron would make money on transactions, much like an investment bank would.
Skilling worked up some numbers and found them "absolutely compelling." Then the McKinsey consultant took the idea to a meeting of about 25 Enron executives. He had a one-page presentation. "Almost to a person," Skilling says, "they thought it was stupid." Almost. After Skilling left the meeting dejected, he walked Ken Lay to an elevator and apologized. Lay listened and then said, "Let's go."
The Gas Bank was not an overnight success. For months Skilling woke up in a cold sweat, sure he had ruined not only his career but the careers of dozens of colleagues who had assisted him. In fact, he had come upon one of those divides that seem to define his life: "I believed this whole world would be different, a huge breakthrough" is the way Skilling puts it today, and even if he is typically immodest, he was right. Fairly soon after launching, the company sold $800 million worth of gas in a week. True to Skilling's character, success turned out to be a matter of old versus new: He says the joke around Enron was that if a company's CEO was under fifty, "We were in." And he was in too: In 1990 Skilling finally left McKinsey and joined Enron as the head of Enron Finance Corporation, a new division created just for him. In 1991 that company closed a deal that earned $11 million in profit. After that, says Skilling, "we never looked back."
Skilling and Lay also realized that the Gas Bank couldn't work unless it had a trading component. Myriad trades were needed to build the market that would make the project go. But by buying and selling enormous quantities of gas, Enron not only constructed a market but almost instantly came to dominate it. The company had the best contacts, the best intelligence, and the best access to supplies. That, in turn, attracted more customers who wanted to be part of the play. With so many customers in its pocket, Enron could better predict the direction of the market and could use that knowledge to make trades for its own benefit-Enron could in effect bet on which way the price of gas would go, as one might do with pork bellies or soybeans, but with startling accuracy, thereby generating profits higher than anyone could have ever imagined.
THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had made: He created, within Enron, a new culture to match its new trading business. The idea was to build a "knowledge-based business," which demanded a skill set not exactly prized by Enron's employees from the old HNG days. Most were deliberate, cautious, responsible, somewhat defensive people, most of them men, of course-the kind of people you'd expect to find working in an industry regulated by the federal government. But now the company needed bolder people for its bold new era: that included anyone who wanted to make money-lots of money-for themselves and for the company. "Enron was going to create a niche for itself or die," one former executive explains. "The people who had narrow views eventually were forced out, because if they had narrow views about other things, they had narrow views about the market."
Skilling wanted smart people but not just any smart people. He wanted the smartest people from schools like Harvard, Stanford, and maybe, Rice. And because his firm was now acting more like a bank than a pipeline company, he wanted to draw from the pool of recruits that would be attracted to the biggest and best investment banks, like Merrill Lynch or Credit Suisse First Boston. In addition to being smart, Enron people were also supposed to be "aggressive." You were right for Enron if you didn't want to wait until you were thirty to close your own deals or move up in an organization.
You could see what he was looking for on "Super Saturdays" at the Houston headquarters: eight fifty-minute interviews with ten minute breaks in between-the company might herd as many as four hundred people through in just one day. They were scored from 1 to 5 on their smarts, their problem-solving ability, their passion for hard work, and what at Enron was called "a sense of urgency." People who scored less than 2.5 were scratched. The shrewdest candidates knew how to work Enron before they were even hired: These were the types that automatically turned down the company's first offer, knowing Enron would come back with more. The starting salary was around $80,000. Maybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more than enough for a lease on the obligatory Porsche Boxster or one of the lofts being renovated close to downtown. (Enron people didn't live in far-flung suburbs. Suburbs were uncool and too far from the office.)
For the lucky winners, Enron offered the corporate equivalent of a gifted-and-talented program. New associates learned the latest techniques for structuring energy deals, and there were rotations at Enron offices around the globe. The hours were long, but every possible need was taken care of. A company concierge handled all the things important people couldn't be bothered with: picking up dry cleaning or prescriptions, shining shoes, cleaning the house, planning a vacation. Of course, a lot of people who worked for Enron never got to take vacations-they were too busy making money-but they could use the company gym and the company's personal trainers. If they were overweight or wanted to quit smoking, they could join Enron's Wellness Program. Massages were offered six days a week, from seven in the morning until ten at night. "They were so cutting edge," rhapsodizes someone involved with the company health care program at the time. "They really thought about the psychology and what it took to keep these people going."
Skilling handed out titles analogous to those at Wall Street firms-analysts, associates, directors, and managing directors-but everyone knew that those titles didn't really matter. Money did. Instead of competitive salaries and decent bonuses, Enron offered competitive salaries and merit-based bonuses-with no cap. "If you really worked hard and delivered results, you could make a lot of money," says Ken Rice, who stayed with Enron for 21 years until resigning recently as the head of the company's faltering broadband division. Or, as the saying goes, you got to eat what you killed. Gas traders with two or three years of experience could wind up with a $1 million bonus. And the more you produced, the closer you got to Jeff: Real hot dogs joined him glacier hiking in Patagonia, Land Cruiser racing in Australia, or off-road motorcycling in a re-creation of the Baja 1,000 race, ending at a spectacular Mexican villa. "Every time he'd speak, I'd believe everything he'd say," one loyalist says.
And why not? By 1995 Enron had become North America's largest natural-gas merchant, controlling 20 percent of the market. But at a company where the buzzword was "aggressive," that was no place to stop: Skilling and Lay believed the Gas Bank model could easily be applied to the electricity business. Firmly committed to the notion that a deregulated market meant better service at lower prices for consumers (and untold profits for Enron), they began barnstorming the country, pressing their case with entrenched power company presidents (who, with their multimillion-dollar salaries and monopoly service areas, had little incentive to change) and energy regulators (who were somewhat more receptive, thanks in part to Enron's generous lobbying efforts).
But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay made him the president and chief operating officer of the company. By then, the division known as Enron Capital and Trade Resources was the nations largest wholesale buyer and seller of natural gas and electricity. The division had grown from two hundred to two thousand employees, and revenues from $2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil in the industry has convinced him that he is on the right track," the New York Times noted. Everyone would certainly have thought so: Enron and Skilling had totally transformed one industry and were well on their way to transforming another.
"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within," sang the New York Times in 1999. "In the staid world of regulated utilities and energy companies, Enron Corp is that gate-crashing Elvis," crowed Fortune in 2000. Wall Street was demanding tech-size growth on a tech timetable, and Enron, in 2000, obliged with second quarter earnings of $289 million, up 30 percent from the previous year. That year the company seemed to discover a market a minute: Under Skilling, Enron was trading coal, paper, steel, and even weather. No one blinked when a London wine bar became an Enron client. People drank more in warm weather than cold, so why not buy a hedge against the usual winter downturn?
But most exciting to the financial world was Enron's entry into high-tech communications. Because of the company's marketing dominance, EnronOnline became another overnight success, handling $335 billion in commodity trades online in 2000. Enron, as usual, made its money on the spread between the bid price and the asking price. Then there was the broadband business: To Enron, trading excess capacity in large, high-speed fiber-optic networks (empty lanes on the fabled information highway) wasn't that different from trading the capacity of natural gas pipelines. So Enron created a market for what the industry calls bandwidth. Soon after, it also announced a twenty-year deal with Blockbuster to deliver movies on demand electronically to people in their homes. Enron looked like a company that couldn't lose. "Its strategy of building businesses, shedding hard assets, and trading various commodities can help it do well even in an uncertain market," BusinessWeek insisted.
There was, however, another reason Enron did so well in such a short time: the company's hard-nosed approach toward its customers. The old notion of customer service was based on the long haul-you had to nurse and coddle customers to keep them. But Enron had new markets and new ideas-customers had to come to it. Over time, the company stopping referring to its business clients as customers and began calling them "counterparties."
Skilling wanted the biggest profits on the shortest timetable: Gains were maximized by creating, owning, and then abandoning a market before it became overtaxed and overregulated. So if you wanted to launch a high-risk venture quickly-such as Zilkha Energy's new high-tech approach to drilling for oil-you got your financing from Enron because a bank would take forever to underwrite the project, if it ever would. But because Enron invented its markets and subsequently dominated them, Enron could set the terms of its deals, from the timeline to the method of accounting to whether the deal happened at all.
While many businesses used what was known in the industry as "mark-to-market accounting," for instance, Enron used it on an unprecedented scale. The company priced their deals at current market value-but it was always Enron's idea of the market value; companies that balked at their pricing didn't get deals. And while old-fashioned companies spread their profits out like annuities over a period of years, Enron took most of its profit up-front. However many millions would be made on a deal that covered several years, they went on the books in the current year. If a few analysts thought there might be something fishy about what they called "subjective accounting," investors didn't particularly care as long as the profits rolled in. As the market fluctuated and the landscape changed, the company might abandon a project that had been in the works for months because its profit margins weren't going to be high enough. "Enron is known for leaving people at the altar," says one former employee. Winning the highest possible profits for the company could even extend to Enron's attitude toward charity. When a fundraiser for the Houston READ Commission, a literacy group, called on Enron for a contribution, it was suggested that he start raising money for Enron's competing literacy charity: "Even the person who was supposed to give money away for Enron was supposed to make money for Enron," he says.
As Enron became more and more successful, the culture Skilling had created took on a dark side: The competition turned inward. As one member of the Enron family put it, "It became a company full of mercenaries." The change started at the bottom. As Enron's domination of the energy market grew, most of the recruiting frills fell away. New associates were treated much like the commodities the company traded. Global Change's Enron spies reported overhearing orders like "I need a smart person-go buy me one" or "Buy me an intelligent slave, quick." Enron had never been the kind of place where people sang to you on your birthday, but now the workaholism bordered on self-parody: A Random Acts of Kindness program lasted only a few months. It was too disruptive. People couldn't get their work done.
And, of course, Enron had a program for institutionalizing creative tension. The Performance Review Committee, which had initially been installed by Skilling in the Capital group, became known as the harshest forced ranking system in the country. Employees were rated on a scale of one to five, and those with fives were usually gone within six months. (The PRC's nickname quickly became "rank and yank.") It was a point of pride that Skilling's division replaced 15 percent of its workforce every year. As one Skilling associate put it, "Jeff viewed this like turning over the inventory in a grocery store." Skilling's approach to business-get in and get out-had become Enron's attitude toward its workers. In time, it would become many workers' attitude toward the company. Teamwork, never that valuable in a trading culture, went the way of the eyeshade and the abacus. If protocol required an Enron higher-up to come from Europe to help with a project in the Third World, he might help-or he might not, depending on whether another, potentially more lucrative project was pending elsewhere.
Everyone felt the pressure to perform on a massive scale at massive speed: "They were so goal oriented toward immediate gratification that they lost sight of the future," says one former employee. Anyone who couldn't close deals within a quarter was punished with bad PRC scores, as were the higher-ups who had backed them. Past errors and old grudges were dredged up so often as new ammunition in PRC meetings that the phrase "No old tapes" became an Enron clich?. "People went from being geniuses to idiots overnight," says one former Enron executive.
In such a hothouse, paranoia flowered. New contracts contained highly restrictive confidentiality agreements about anything pertaining to the company. E-mail was monitored. A former executive routinely carried two laptops, one for the company and one for himself. People may have been rich at Enron, but they weren't necessarily happy. One recruiter described the culture this way: "They roll you over and slit your throat and watch your eyes while you bleed to death."
BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy company into the world's leading company, he had to make one more change: Just as he had done ten years before, Skilling had to purge the company of its remaining old order. Where Enron once prized cautious executives who dealt with tangible assets like pipelines, it now valued bold executives who dealt with intangible assets. Pipelines, power plants-they may have been Enron's pride, but Skilling wanted them gone. Expensive, long-term building projects had no place when Wall Street was devoted to quick profits and enormous returns on investment capital, and Skilling knew it. "It wasn't the time for long-term approaches," an Enron executive says of Wall Street's mood. "It was the technology era."
To rid Enron of the last vestiges of its past, Skilling had to take on Rebecca Mark, long considered his rival for the CEO's job. Mark was for many years the poster child for the Enron way: Young, attractive, aggressive-her nickname was Mark the Shark-she came from sturdy Midwestern stock but had the requisite Harvard MBA. Mark was largely responsible for the success of Enron International, the asset-heavy side of the company where she developed $20 billion worth of gas and power plants, which accounted for 40 percent of Enron's profits in 1998. For this she reaped breathtaking compensation-one Enron executive estimated $10 million-and adoring press clips, including two appearances on Fortune's list of the fifty most powerful women in corporate America.
But then Mark ran into trouble with a gas-fired power plant in Dabhol, India, one of the largest ever constructed. She had played the game the Enron way: Taking Enron into a new market, she had finagled low import taxes (20 percent instead of the usual 53) and hung in through 24 lawsuits and three changes in government. But the time and expense needed to make India and other Enron plants around the globe successful did not mesh with Enron's goals, and Skilling's impatience with Mark grew.
Forcing Mark out, however, was no easy matter. Key executives left, divisions were dismantled, but she remained. The truth was Enron didn't mind firing lower-level employees, but it hated to fire the kind of aggressive, relentless people it tended to promote. The company preferred humiliation-keeping a director in his cubicle, say, but failing to include him in the glamour deals, or kicking someone upstairs with a fancy title. (One particularly difficult executive won a few years at graduate school, gratis.) A company as smart as Enron could probably deduce too that dispatching one of the most visible businesswomen in the country would provoke a public-relations disaster. So Lay and Skilling did something classically Enronian: They gave Mark her own company. Despite Skilling's contempt for asset-heavy businesses, Enron spent more than $2 billion to buy a run-of-the-mill British water utility that could serve as Enron's entry into the emerging world of water privatization. Mark was put in charge of making Enron, yes, the world's greatest water company. Azurix, as the new business was called, looked like another sure thing: Its IPO in 1999 raised $695 million.
But Mark had to succeed on Enron's increasingly abbreviated timetable in a business fraught with political and emotional complexities. Water is not like gas or electricity-owners and governments are a lot less willing to give it up, even for lots of money. The company stumbled, layoffs commenced, and confidence evaporated. By August 2000 the stock price, which had started out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much diminished, was folded into Enron. "I think it's best for Rebecca to start afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal. Or as one critic put it, "They were more interested in destroying the old culture than running a business."
As 2000 drew to a close, Skilling was in total command. In December Ken Lay announced the inevitable: "The best time for the succession to occur is when the company is doing well," he told the press. "Enron is doing extremely well now." In February 2001 Jeff Skilling took over the CEO's job.
ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-power market made it an instant target in the California deregulation debacle. Both PBS's Frontline and the New York Times took on Enron, portraying the company as a heartless colossus that used its influence in Washington (Lay and Enron's political action committee are the top contributors to George W. Bush) to force old people on fixed incomes to choose between buying food or electricity. Skilling and Lay appeared on camera singing belligerent anthems to the free market, while another memorable scene juxtaposed one of the company's jackallike traders against a hapless state employee in California, as both tried to buy power online. The Times reported that Lay had tried to persuade a new federal commissioner to change his views on energy deregulation. The bad press was, to say the least, ironic: Just as the media was pounding Enron for its omnipotence, Wall Street was discovering its weaknesses. By late March the stock price had slid to $50 a share from $80 in January.
Within Enron, the asset-based divisions took the rap for the decline. (The India plant continued to be enormously costly, at least in part because of constant turnover within Enron's management team.) But the California situation was more visible and therefore more damaging, despite Enron's claim that the state had never built enough power plants to service its population and never properly managed those it had. "For three months Gray Davis did a very good job of blaming us," says Mark Palmer, a vice president for corporate communications. "We were a Texas company. There was a Texan in the White House. California was a state that didn't put him in office, and his biggest contributor was a Texas energy company. Performance is going to take care of our stock price. The truth will take care of Gray Davis." (California utilities still owe Enron $500 million, another reason stockholders might be panicky.) But more problematic than the crisis itself was Skilling's all too apparent lack of contrition. Facing down his critics, he cracked a joke comparing California with the Titanic. ("At least the Titanic went down with its lights on.")
But the biggest problem was Enron's telecommunications division, which had been responsible for at least one third of its heady stock price. Investors believed that Enron could revolutionize high-speed communications, just as it had revolutionized gas and power. Enron estimated the global market for buying and selling space over fiber-optic cable would grow from $155 billion in 2001 to $383 billion by 2004-but then the tech bubble burst. So too did the much-hyped movies-on-demand deal with Blockbuster. For the first time in its confoundingly successful life, Enron had nothing new to take to market. Like the popular high school girl who suddenly packs on a few pounds, Enron suddenly looked less alluring to Wall Street.
Skilling launched a campaign to keep Enron's most important cheerleaders, the stock analysts, in the tent, but he wasn't cut out to be a supplicant. During the reporting of first quarter profits, he called an analyst who challenged Enron's financial reporting an "asshole." When the company reported hefty second quarter profits, many analysts questioned whether those profits had come from the generation of new business or from the sale of old assets. Ignoring the growing chorus critical of Enron's accounting, Skilling promised, as he always had, that innovations were just around the corner. "There wasn't any positive news," Carol Coale, of Prudential Financial, says now. "Basically, he talked me out of a downgrade."
The business press, so generous in the past, turned surly. Fortune had asked in March whether Enron was overpriced. ("Start with a pretty straightforward question: How exactly does Enron make its money?") The routine cashing in of stock options that were about to expire by key executives was portrayed in the media as a fire sale. (Skilling had sold $33 million worth, Ken Lay and Ken Rice close to four times that amount.) Then the Wall Street Journal reported on a fund run by the CFO that had been a source of strife within the company. (It was essentially risk management against Enron's possible failures.) Every negative story seemed to produce a concurrent drop in the stock price: By late August it had fallen below $40. Enron, so institutionally unforgiving, finally got a taste of its own medicine. "When Wall Street is in love with a stock, they're forgiving of something like accounting," says Carol Coale. "When a company falls out of favor, all these issues carry more weight."
This fact was not lost on people inside the company, who suddenly started experiencing an attack of conscience. Those who had looked the other way as the most powerful Enron executives dumped their wives and married their secretaries or carried on flagrant interoffice affairs now saw the error of their ways. "It just created an attitude," one executive still at Enron says. "If senior people are doing that, why are we held to a higher standard? There was a real culture of 'We're above everyone else.'"
Loyalty had never been prized at Enron, so there was no reason to expect it now. An old-fashioned, slow-moving company like Exxon could demand hardship duty in Baku with the promise of greater rewards down the road. "But," as one Houston oilman explains, "if you have to negotiate a hardship duty with someone who doesn't have loyalty and has money, then you have a corporation that's better suited for good times than bad."
As it turned out, that description applied to Jeff Skilling too. As the stock price stubbornly refused to ascend, he made no secret of his unhappiness and frustration. Then, after a trip to visit the families of three employees killed at a plant in England, he had an epiphany: Life was short; for him, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named a new president, arranged a trip to New York to calm analysts and investors, and promised a kinder, gentler Enron in the future. Trading anything and everything was out. The company, Lay says, will still innovate but "innovate much closer to our core." As for the culture: "Things like the Performance Review Committee, I think we could have applied better. By trying to categorize people into so many different categories, you ended up creating a morale problem."
That Skilling's supposedly brilliant colleagues were as shocked at the news of his departure as the rest of the business community may be testament to their lack of emotional intelligence. Despite Skilling's lengthy tenure with Enron, he'd always been contemptuous of the long haul; he'd always believed in cutting losses and moving on. But now that he was abandoning them when the company was in trouble, it was different. "Even Jeff's biggest detractors wouldn't have wanted him to walk out the door," one loyalist admits.
But on the day we meet, Skilling is looking forward, not back. "Look," he says with finality, "ninety percent of my net worth is in Enron. Were my interests aligned with the shareholders? Absolutely."
Free of falling stock prices and shareholder pressures, he is nestling himself back into the world of ideas. His eyes flash as he talks about new technologies. "The first wave never gets it right," he says. "The stand-alone dot-coms didn't work, but the technological applications will create a second wave that will change the world." Houston, he promises, will become the world's center of commodity trading, and he intends to be a part of it. In fact, he is already shopping for office space.
"This is the second wave, and Enron's got it," he says, almost breathless. "There are thousands of people running around the streets of Houston that get it."


probably around 10.  if not tomorrow definately thurs.


?Here is a report on the second day of Max Holmes' deposition.

This e-mail message may contain legally privileged and/or confidential
information. If you are not the intended recipient(s), or the employee
or agent responsible for delivery of this message to the intended
recipient(s), you are hereby notified that any dissemination,
distribution or copying of this e-mail message is strictly prohibited.
If you have received this message in error, please immediately notify
the sender and delete this e-mail message from your computer.

 <<depsum11.28>>

 - depsum11.28


Your seat is reserved in the above session.  Please join us in the DeZavala
Room on the second floor of the Doubletree Hotel.

Please feel free to contact me at X57373 if you have any questions.

Best regards,
Taffy Milligan


Obviously it is not what we want - we are assuming Anthony has power Beth has gas.

-----Original Message-----
From: Pickering, Mark
Sent: Monday, October 01, 2001 9:03 AM
To: Kitchen, Louise
Subject: ENA IT
Importance: High
Sensitivity: Private

Louise,

I need to bring this to close.

I am going to decompose Beth's group into a number of smaller units, leaving the most important areas in ENA, namely GAS/Power Front and Back office. I am going to leave Anthony running EES, but need someone who can work well with Anthony on developing the strategy for the new longer term solutions, as well as what he is trying to achieve in the short term.

The final candidates are Steve Stock, Everett Plant, and as possible late entry John Paskin (although he doesn't know this yet and I have him tagged to run Corporate Systems). From a collaboration perspective I am leaning towards Stocky. We have all spoken with Everett and are impressed with his 'gloss'. I'm just not sure he is the right person to give the 'crown jewels' to, my gut tells me he is good at managing up, but may not be the best collaborative team member (and I need that).

Let mk know what you think

Thanks

Oh, and thanks for the Baseball the other night, we had fun.

Mark Pickering
Chief Technology Officer

Enron Net Works, LLC

  _____


Toni:  just about any day would be fine.  We are really busy between 7:30 and
11:30 every morning.  Just let me know when you want to sit down with us.
Thanks.


As you know, Enron Wholesale Services (EWS) has been reorganized under the leadership of CEO Jim Fallon.  Rich DiMichele supports Jim as COO of EWS, while also continuing in his role as head of Enron Broadband Services (EBS).  EWS businesses include:  Enron North America, EBS, Enron Industrial Markets, Enron Global Markets, Enron Europe and Enron Canada.  EWS' business focus remains on maximizing creditor value and determining which businesses and assets will be a part of Enron's reorganization plan.

In addition to Rich, reporting to Jim are:

?	Don Miller - ENA
?	Gary Hickerson - EGM
?	Rodney Malcolm - EIM
?	Eric Shaw - Enron Europe
?	Kyle Kitagawa - Enron Canada
?	Lance Schuler - General Counsel
?	Barry Pearce - Chief of Staff
?	Dave Gorte - RAC
?	Kent Castleman - Accounting
?	Shanna Funkhouser - Human Resources

Enron Wholesale Services

<Embedded MS Organization Chart 2.0>


Notice # 01-366
October 31, 2001

TO:
All NYMEX Division members
All NYMEX Division cleating members

FROM:
J. Robert Collins, Jr., President

RE:
Introduction of EFS Trading in Natural Gas

The New York Mercantile Exchange, Inc., will begin offering tomorrow
exchange of futures for swap (EFS) transactions in the first step of its
plans to offer over clearing services to the over-the-counter (OTC) natural
gas market.

This plan will also include the introduction of large order execution in
the
natural gas futures market and electronic trading of cleared natural gas
swaps and basis contracts.

We are delighted that we were able to expedite the introduction of this
instrument as the current climate in the natural gas market has served to
reinforce the necessity of credit intermediation.  The liquidity of our
market, combined with a clearinghouse that has half billion dollars
available to participants on each of the Exchange divisions through each
guarantee fund and the respective clearing members, put us in a unique
position to offer these services.

In addition, natural gas futures and options volume in 2000 reached the
equivalent of approximately 230 trillion cubic feet of natural gas and the
notional value of last year's transactions Exchange-wide totaled $3
trillion, or $14 billion per day.

EFS transactions will work similarly to exchange of futures for physical
(EFP) transactions.  Two parties will be allowed to privately negotiate the
execution of an integrated over-the-counter swaps and related futures
transaction on pricing terms agreed upon by the involved parties.  The
transaction must involve approximately equal but opposite side-of-market
quantities of futures and swap exposures in the same or related commodities
and will be permitted until two hours after trading terminates in the
underlying futures contract.  EFS transactions will be permitted to
liquidate, initiate, and transfer futures market positions between the two
parties involved in the transaction.  The Exchange will charge $10 per side
for each EFS transaction.  The clearing member representing each party will
be responsible to notify the Exchange of the amount and type of futures
contracts involved, the price at which the futures transaction should be
cleared, and the identity of the parties involved.

Forward Looking and Cautionary Statements
The New York Mercantile Exchange, Inc., has attempted, wherever possible,
to
make statements in good faith , as of the date of this release, by using
words such as anticipate, believes, expects, and words and terms of similar
substance in connection with any discussion of its present and future
operations within the industry. Any forward-looking statements made by, or
on behalf of the Exchange, involve a number of risks, trends,
uncertainties,
and other factors which may cause actual results to differ materially,
including; the Exchange=s receipt of the necessary Commodity Futures
Trading
Commission approval; timely performance and cooperative effort of exchange
partners; and changes in financial or business conditions at the Exchange.


FYI
--------------------------
Dan Lyons

-----Original Message-----
From: Rasmussen, Dale <Dale.Rasmussen@ENRON.com>
To: Blackburn, Jody <Jody.Blackburn@ENRON.com>; Mays, Wayne <Wayne.Mays@ENRON.com>; Williams, Bill <Bill.Williams@ENRON.com>; Mullen, Mark <Mark.Mullen@ENRON.com>; Hammond, Don <Don.Hammond@ENRON.com>; Jones, Karen E. <Karen.E.Jones@ENRON.com>; McCarrel, Steven <Steven.McCarrel@ENRON.com>; Erwin, Kenton <Kenton.Erwin@ENRON.com>; Merten, Eric <Eric.Merten@ENRON.com>; Hall, Steve C. (Legal) <Steve.C.Hall@ENRON.com>; Yoder, Christian <Christian.Yoder@ENRON.com>; Lyons, Dan <Dan.Lyons@ENRON.com>; Tweed, Sheila <Sheila.Tweed@ENRON.com>; King, Jan M. <Jan.M.King@ENRON.com>; Parquet, David <David.Parquet@ENRON.com>; Browner, Victor <Victor.Browner@ENRON.com>
Sent: Tue Nov 27 17:18:24 2001
Subject: Because the Hokey Pokey is more interesting than what we do for a living

I had to do some follow-up research on the background to the earlier e-mail (which is still the high point of my day):

http://www.goodbyemag.com/apr/hokey.htm

Hokey Pokey Dance Founder Dies. The Mystery Lives On.
Larry LaPrise put his right foot, as well as the rest of himself, in the grave April 4, age 83. Those who remember the exquisite torture that is the Hokey Pokey will find bittersweet news of its inventor's death. While most may remember the dance as a staple of grade-school music class, La Prise actually invented it for the "apr?s-ski" crowd at an Idaho resort in the 40s. The scandalous part of the story is that he almost certainly stole it. But from whom?
The song was recorded as a novelty a couple of times but it didn't become a source of steady income for LaPrise until Roy Acuff bought the rights to it in the 60s.
Alas, the Hokey Pokey turned out to be the high-water mark of LaPrise's musical career-in fact, the only water mark. LaPrise, by then a father of six, was working for the post office in Ketchum, Idaho.
There followed a steady succession of recordings: Jack Johnson and the Hickory Dickory Singers, Warren Covington with the Tommy Dorsey Orchestra, Cliffie Stone, Jerry Marks, Chubby Checker, Annette Funicello, the Champs. In no time, the Hokey Pokey was everywhere. Other versions include, "Hokey Pokey Cow Bell Blues," "Hokey Pokey Mama," and "Hokey Pokey Polka."
By the early 1990s, it had even turned up on a heavy metal album by the band Haunted Garage, alongside such classics as "Party in the Graveyard" and "Torture Dungeon".
"The Hokey Pokey' is like a square dance, really,'' LaPrise said in 1992. "You turn around. You shake it all about. Everyone is in a circle, and it gets them all involved.''
The tune became the official victory dance for the Iowa State Football team. ''''I guarantee you we never had a big victory where we were the underdog or won a championship game or had a bowl victory that we didn't do the Hokey Pokey and celebrate,'' Coach Hayden Fry said. I would have sent him a note. I'm sure he never dreamed that he made a contribution in athletics.'''
But the really shocking part is that the song may have been stolen.
Lexington, KY resident Bob Degen claims the folk song is his.
Degen, 90, owns a 1944 copyright for "The Hokey-Pokey Dance," and claims to have written the words and music. His copyright predates LaPrise's by six years.
"He's a faker," Degen said of LaPrise. In fact, Degen sued LaPrise in 1956 in U.S. District Court in California. According to Degen, the two parties settled out of court to split 40 percent of the royalties. Degen is adamant that he wrote the song without any influences. The truth, unusually, seems to lie not in between but without: Pure Invention is rare.
A December 1945 issue of Dance magazine contains an article about an English novelty song called "the Okey Cokey," which American GIs were said to have danced to in England during WWII.
You put your left arm in.
You put your left arm out,
And shake it all about.
You do the okey-cokey
And you turn about.
And that's what it's all about."
In his 1940 book, The Gift to be Simple, Edward Deming Andrews described a song called "The Hinkum-Booby" that was sung by Shakers in Kentucky:
"I put my right hand in,
I put my right hand out,
I give my right hand a shake,
And I turn it all about."
So everybody in the copyright dispute was stealing from the great well of traditional folksong. As are all who try to be original with materials we hope will find resonance.

Dale Rasmussen
Tel:  (503) 464-8863
Fax: (503) 464-8058


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


Pierre-Philippe,

Yes, we are ready. I shall be accompanied by one person from
our Analyst/Associate program and I would like to ask you if she can be
invited
to dinner as well.

We plan to come Thursday night and leave on Sat morning to avoid potential
flight delay risk.

Vince

Pierre-Philippe Ste-Marie <ps5@andrew.cmu.edu> on 10/08/2000 06:55:27 PM
To: Vince.J.Kaminski@enron.com
cc:
Subject: Re: MSCF Speaker Series

Hi Mr. Kaminski,

Just touching base  for the 3rd of November. Is everything ready?

Sincerely,

Pierre-Philippe Ste-Marie


Casey,

The Deal Liquidation/Splitter has been released to Estate production.

Regards,
Will


I'm not sure if this is automatic or if you have to actually do something to
make sure it happens, but either way, THANK YOU!  Flying on this flight
stinks and it would be even worse in the back of the bus!!  DF

---------------------- Forwarded by Drew Fossum/ET&S/Enron on 10/11/2000
03:01 PM ---------------------------

Martin Kovacs <martin.kovacs@travelpark.com> on 10/11/2000 09:21:58 AM
To: "'dfossum@enron.com'" <dfossum@enron.com>
cc:

Subject: Upgraded seat

                                                   SALES AGT: TR/X4Z8S7

                                          FOSSUM/DREW
                                          ETKT RECEIPT
                                          **REVIEW UPGRADE BELOW**
  ENRON OMA

  DATE:  OCT 11 2000

SERVICE               DATE  FROM           TO             DEPART  ARRIVE

HOTEL                 10OCT DOUBLETREE HOUSTON ALLEN CENTER
                      11OCT 400 DALLAS STREET
                            HOUSTON, TX 77002
                            UNITED STATES OF AMERICA
                            TELEPHONE: (713) 759-0202
                            FAX: (713) 759-9605
                            CONFIRMATION: 85361656
                            REFERENCE: B1KENR
                            SINGLE ROOM KING SIZE BED
                            RATE: ENR USD 124.00 PER NIGHT
                            GUARANTEE GIVEN
                            ZD311865888 ENRON CORP RQST NONSMKG KING
              TO AVOID BILLING CANCEL BY 4PM DAY OF ARRIVAL

CONTINENTAL AIRLINES  11OCT HOUSTON TX     OMAHA NE       830P    1049P
CO 1467    F          WED   G.BUSH INTERCO EPPLEY AIRFIEL
                            TERMINAL C
                                                          NON STOP
                            RESERVATION CONFIRMED         2:09 DURATION
                  AIRCRAFT: BOEING 737-300
                            SEAT 01E NO SMOKING CONFIRMED FOSSUM/DREW(IDS
                    FIRST CLASS UPGRADE IS CONFIRMED.

MISCELLANEOUS         10DEC HOUSTON TX
                      SUN   ** THANK YOU FOR USING THE TAP **

FOSSUM/DREW  S1C0366R1116

CO  FREQUENT FLYER COHF518933
NTL TVLRS: CARRY SOS WALLET CARD W/ENRONASSISTANCE INFO
CALL SOS: IN U.S 800 523-6586/INTL 215 245-4707 (COLLECT)
**********************************************
THIS IS THE PASSENGER RECEIPT FOR YOUR ELECTRONIC TICKET.
PLEASE CHECK-IN WITH PHOTO IDENTIFICATION AND WITH
EITHER (1) THIS RECEIPT OR (2) YOUR CONFIRMATION NUMBER.
YOUR ETKT CONFIRMATION NUMBER IS: I 2 E J 7 H


See the comment below on Williams' confirmation site.  Sounds similar to what
we are proposing on CL.  One question I'm exploring right now is whether we
could save more money from an Enron perspective and achieve greater
marketability with the model that ConfirmCorp proposes with automated
matching vs. the Commodity Logic/Williams approach that depends on users
reviewing/approving confirms (we've simply put the current process online so
to speak).  We need to push for a more radical change/improvement on a faster
timeline.   I still believe confirms is the correct area to be focusing on,
as I mentioned in our meeting with Louise, but we need to seriously review
what we propose to deliver and how.  Is ConfirmCorp a viable company to bring
under the Enron umbrella?

I think we should be concerned that late entry with less functionality will
erode our ability to sign up customers.  I don't think each large marketer
will want to log in to several sites to clear their confirmations with each
of their large counterparties.

Can we find out if Williams has further plans for their service that would
compete with Commodity Logic?

---------------------- Forwarded by Mary Solmonson/HOU/ECT on 11/07/2000
03:08 PM ---------------------------

"Chris Papousek" <cep@confirmcorp.com> on 11/07/2000 11:10:15 AM
Please respond to <cep@confirmcorp.com>
To: <ron.nolte@enron.com>
cc: <mary.solmonson@enron.com>
Subject: ConfirmCorp Info

Dear Ron:

I recently sent you information relating to ConfirmCorp via FedEx.  I trust
you have received it by now.  If you have any questions, please do not
hesitant to call.  I will follow up with you in one week.

Regards,

Chris Papousek
President, Confirmation Clearing Corporation
(713)526-3000

PS Williams Energy just came out with "Williams CustomerFirst", a website
that contains all their confirmations.  While eliminating faxes, this puts
the onus of verification on the counterparty and assumes there is a
confirmation staff on the other end to do the checkout.  ConfirmCorp will
make even this advanced approach obsolete.


Wendy,
I think the amendment only brought the collateral threshold to zero for trades after Dec. 31, 2001.  There was no mention in the amendment of the new ENMAX entity.  We sent a draft ISDA for ENMAX Energy Marketing, Inc. but have not heard anything from them.

 -----Original Message-----
From: 	Bailey, Susan
Sent:	Thursday, October 25, 2001 4:44 PM
To:	Panus, Stephanie
Cc:	Conwell, Wendy
Subject:	FW: ENMAX Energy Corp

Stephanie,

I think this might be your matter.  Could you advise Wendy as to your findings.

Thanks.

Susan
 -----Original Message-----
From: 	Conwell, Wendy
Sent:	Thursday, October 25, 2001 4:23 PM
To:	Bailey, Susan
Cc:	Law, Michael; Cook, Mary
Subject:	ENMAX Energy Corp

Susan,

Could you please follow up with the above referenced counterparty to see where they are on our amendment to the existing ISDA?  This amendment provides for ENMAX Energy Marketing Inc. as a new contracting party under the agreement.

Thanks for you help!

Wendy


Mike:

Please send me your resume or call me. I have senior position that I would like to discuss.

Regards,

Craig Jefferies
President
CKB Energy, Inc.
(917) 445 1189


Attached is an updated Term Sheet.  For your convenience, I have attached
marked and unmarked copies.

> Alicia L. Curry
> Vinson & Elkins L.L.P.
> 2300 First City Tower
> 1001 Fannin Street
> Houston, Texas 77002-6760
> Phone:  713-758-4428
> Fax:  713-615-5688
> (Licensed in New York only)
>
>
>
>
> +++++++++++++++++++++++
> CONFIDENTIALITY NOTICE
> +++++++++++++++++++++++
> The information in this email may be confidential and/or privileged.
> This email is intended to be reviewed by only the individual or
> organization named above. If you are not the intended recipient or an
> authorized representative of the intended recipient, you are hereby
> notified that any review, dissemination or copying of this email and
> its attachments, if any, or the information contained herein is
> prohibited. If you have received this email in error, please
> immediately notify the sender by return email and delete this email
> from your system. Thank You
>
PRIVILEGED AND CONFIDENTIAL:
Contains attorney-client communications and/or attorney work product.

 <<Compare.DOC>>  <<Term Sheet for Merlin Put v8.DOC>>

 - Compare.DOC
 - Term Sheet for Merlin Put v8.DOC


Shirley,

Please, register me. Is there any  conflict?

Vince

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/30/99
12:43 PM ---------------------------

"John D. Martin" <J_Martin@baylor.edu> on 12/28/99 02:35:14 PM
To: ramchand@jetson.uh.edu, ds64@andrew.cmu.edu, Mary Alison
Bailey/HOU/ECT@ECT, Karin.S.Thorburn@Dartmouth.EDU,
Scott_Richardson@ccmail.bus.umich.edu, cjustice@ect.enron.com,
ds64@MAIL1.ANDREW.CMU.EDU, abutler@finance.bus.lsu.edu, bethelj@sec.gov, Bill
Petty <Bill_Petty@baylor.edu>, Blake Johnson <blakej@stanford.edu>,
BrisArturo <ab364@bull.som.yale.edu>, c.barry@tcu.edu, ckirby@utdallas.edu,
Darius Palia <darius.palia@gsbpop.uchicago.edu>, daveike@ruf.rice.edu, "David
A. Chapman" <chapman@eco.utexas.edu>, david.hirshleifer@ccmail.bus.umich.edu,
dmauer@mail.cox.smu.edu, dosborne@utdallas.edu, eronn@mail.utexas.edu (Ehud
I. Ronn), Espen Eckbo <B.Espen.Eckbo@Dartmouth.EDU>, Stuart Gillan
<sgillan@tiaa-cref.org>, grullon@rice.edu, jfleming@ruf.rice.edu,
jmccormack@sternstewart.com, "John D. Martin" <J_Martin@baylor.edu>,
steoh@umich.edu, jwallen@mail.cox.smu.edu, Kent Daniel
<kent@kent.kellogg.nwu.edu>, Laura Starks <lstarks@mail.utexas.edu>, Murray
Carlson <carlsonm@mail.utexas.edu>, pkadiyal@mail.cox.smu.edu,
ramchand@jetson.uh.edu, s.mann@tcu.edu, SirriE@sec.gov,
smoeller@mail.cox.smu.edu, stice@mailhost.tcs.tulane.edu, "Thomas H. Noe"
<tnoe@mailhost.tcs.tulane.edu>, Tim Opler <opler.1@osu.edu>,
Titman@mail.utexas.edu, veleswar@mail.cox.smu.edu,
vencat@mailhost.tcs.tulane.edu, Vince J Kaminski/HOU/ECT@ECT,
wangfa@rice.edu, warga@uh.edu, wylee@comp.uark.edu, yexiaoxu@utdallas.edu,
Andres Almazan <Andres.Almazan@bus.utexas.edu>, Antonio Bernardo
<abernard@anderson.ucla.edu>, sgilson@hbs.edu
cc:
Subject: Announcing TFF 2000

Happy New Year!  Just a note to announce the dates for this years Texas
Finance Festival.  This year we are meeting earlier in April, in San
Antonio, and start the program on Friday. Please put the date on you
calendar and send in your registration forms ASAP as space at the
conference is limited.  I also encourage you to register with the hotel
immediately as we were able to reserve only a limited number of rooms at
the reduced conference rate.

Hope to see you all there!  More fun in Texas.

John
 - announcerev.doc

John D. Martin
Carr P. Collins Chair in Finance
Finance Department
Baylor University
PO Box 98004
Waco, TX 76798
254-710-4473 (Office)
254-710-1092 (Fax)
J_Martin@Baylor.edu
web:    http://hsb.baylor.edu/html/martinj/home.html


Hi Laura:
I'll be forwarding you additional information per your phone call with
Steve.  You can expect it either later this evening or first thing in the
morning.  And please feel free to contact me at the following numbers:

direct dial: 415.782.7822
pager:  888.916.7184
cell phone: 415.505.6633

Best,
Jeff


Attached is the referenced Annex B.  Call me if I can be of further help.


AGA for 7/14/00 is 70


Content-Transfer-Encoding: quoted-printable
Date: Fri, 16 Mar 2001 09:10:30 -0600
From: "Tracey Bradley" <tbradley@bracepatt.com>
To: "Paul Fox" <pfox@bracepatt.com>
Cc: "Alfredo Perez" <aperez@bracepatt.com>, "Andrea Settanni"
<asettanni@bracepatt.com>, "Charles Ingebretson"
<cingebretson@bracepatt.com>, "Charles Shoneman" <cshoneman@bracepatt.com>,
"Deanna King" <dking@bracepatt.com>, "Jeffrey Watkiss"
<dwatkiss@bracepatt.com>, "Gene Godley" <ggodley@bracepatt.com>, "Kimberly
Curry" <kcurry@bracepatt.com>, "Mark Evans" <mevans@bracepatt.com>, "Michael
Pate" <mpate@bracepatt.com>, "Ronald Carroll" <rcarroll@bracepatt.com>
Subject: Potential Bankruptcy Petition Against SCE
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Disposition: inline

Generator to sign bankruptcy filing
Report says Coram to sign petition against SoCalEd
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 6:43 PM ET Mar 15, 2001

TEHACHAPI, Calif. (CBS.MW) -- Independent electricity generator Coram Energy
Group said it will sign a bankruptcy petition Thursday against Southern
California Edison, according to a published report.

The petition is being circulated among five other "qualifying facilities,"
also known as small generating plants, Coram owner Brian O'Sullivan told Dow
Jones Newswires.

O'Sullivan said his company is running out of cash and will have to shut down
operations in about a month, according to the report. Coram Energy, which was
one of several renewable power generators that formed a creditors' committee
in February, produces wind energy at three locations in Tehachapi, Calif.

The petition could be filed in a Los Angeles bankruptcy court as early as
next week, the report said. The move could prompt the start of involuntary
bankruptcy proceedings against the utility owned by Edison International
(EIX: news, msgs, alerts) .

The report also said FPL Group (FPL: news, msgs, alerts) , owner of several
qualifying facilities in SoCal Edison's area, may also join the group.

Southern California Edison and another of California's big utilities, Pacific
Gas & Electric (PCG: news, msgs, alerts) , have combined debts of more than
$13 billion. Both suffer from having to pay high wholesale power prices to
supply electricity to their customers who pay retail rates capped by state
regulators below actual costs.

Myra P. Saefong is a reporter for CBS.MarketWatch.com in San Francisco.


Attached is the updated list of master netting agreement assignments.


- 10_29_01ON.xls


Kate-
Mark Fischer EOL trade failed, Transcanada Power, division... logged in under
the wrong name.  I manually entered EOL transaction  766105, the enpower deal
number is 496130.01.  I will inform the Cp of this.  Thanks
Stephanie


Please see the attached letter to Senator Wyden.  I am also sending a hard
copy by regular mail.

(See attached file: Wyden Letter re Information Release 022601FINAL.doc)

 - Wyden Letter re Information Release 022601FINAL.doc


Qiana 53979, booked 6/14/00


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  ? 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Crude     http://www.carrfut.com/research/Energy1/crude23.pdf
Natural Gas     http://www.carrfut.com/research/Energy1/ngas23.pdf
Distillate     http://www.carrfut.com/research/Energy1/hoil23.pdf
Unleaded     http://www.carrfut.com/research/Energy1/unlded23.pdf

Dec WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clz-qoz.pdf
Dec Heat Crack     http://www.carrfut.com/research/Energy1/heatcrack.pdf
Dec Gas Crack     http://www.carrfut.com/research/Energy1/gascrack.pdf
Dec/May Heat Spread     http://www.carrfut.com/research/Energy1/hoz-hok.pdf
Jan/Feb Heat Spread     http://www.carrfut.com/research/Energy1/hof-hog.pdf
Nov Gas/Heat Spread     http://www.carrfut.com/research/Energy1/hux-hox.pdf
Dec Gas/Heat Spread     http://www.carrfut.com/research/Energy1/huz-hoz.pdf
Nov/Mar Unlead Spread
http://www.carrfut.com/research/Energy1/hux-huh.pdf

Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG23.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG23.pdf

Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL23.pdf

Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606


Enymex slowed by Access Internet launch

08/29/2001
Megawatt Daily
(c) Copyright 2001 Pasha Publications, Inc. All Rights Reserved.

  It looks to be another four to six months before NYMEX launches its
electronic trading platform enymex, designed to provide a neutral
trading platform for traditionally over-the-counter products. The delay
comes in part as NYMEX begins offering its after-hours Access electronic
trading system via the Internet next week.

  The introduction of Access to the Internet poses some new questions
for NYMEX, especially how it will integrate Access with enymex, NYMEX's
Nachamah Jacobovits explained. The two platforms will remain separate,
but the idea is to allow easy trading between the two, she noted.
  NYMEX had to delay an anticipated second-quarter launch for enymex
this year after canceling a contract with a software provider that was
developing the link between the order matching system and screen layout
for the new platform. The exchange has been working with the remaining
software vendors and staff to complete the platform.

  As it stands now, enymex would offer a variety of gas swap contracts
related to the Henry Hub and other pricing points, as well as crude oil,
heating oil and gasoline calendar swaps.

  Enymex promises to be a neutral, open trading platform without
counterparty credit risk, offering standardized basis products tied to
the exchange's most liquid benchmark products. Its development was first
announced in May 2000.                                             SGS

Folder Name: E Nymex
Relevance Score on Scale of 100: 99

______________________________________________________________________

To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.)
______________________________________________________________________

Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved


Is in!
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


fyi
---------------------- Forwarded by Steven J Kean/NA/Enron on 07/19/2001
08:37 AM ---------------------------
From: Michael Terraso/ENRON@enronXgate on 07/18/2001 07:17 PM

To: Steven J Kean/NA/Enron@Enron

cc:

Subject: FW: 18/7 - 7:00 p.m. - Update: Emergency

Steve, fyi Mike Terraso

-----Original Message-----
From: Hawkins, Don
Sent: Wed 7/18/2001 5:29 PM
To: Lowry, Phil; Terraso, Michael
Cc:
Subject: FW: 18/7 - 7:00 p.m. - Update: Emergency

FYI,

Don

;-----Original Message-----
From: ; Steve Hopper/TRANSREDES@TRANSREDES@ENRON [
mailto:IMCEANOTES-Steve+20Hopper_TRANSREDES+40TRANSREDES+40ENRON@ENRON.com];
On Behalf Of Steve Hopper/TRANSREDES@ENRON

Sent:;; Wednesday, July 18, 2001 4:24 PM
To:;;;; Hopper, Steve
Cc:;;;; nick.tombs@shell.com.br; Johannes.Walzebuck@shell.com.br; Weidler,
Peter E; Henshaw, Tony; Gonzalez, Fernando; Farmer, Doug; Berg, Jan van den;
Naphan, John; Vega, John; Callau, Juan; Hawkins, Don; Khan, Nasim; Powell,
Laine; NLIMBREI@shell.com.br; Marcelo.Menicucci@shell.com.br

Subject:;;;;;;; Re: 18/7 - 7:00 p.m. - Update: Emergency

 We have completed the inspection of the GAA line to LaPaz, and everything
looks OK.; We'll reinitiate gas flow tonight.; OSSA II should be completed
tomorrow.; Army personnel continues to be patrolling the area, but things
remain pretty calm, despite several areas in the country that are under
roadblock by protesters.

 I'm going to keep things in emergency status until at least tomorrow, after
today's roadblocks are lifted.; Will advise of any developments.

 Steve

 Steve Hopper
07/17/2001 07:02 PM

To:;;;; nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.br, Peter E
Weidler/Enron@EnronXGate
cc:;;;; Tony Henshaw/TRANSREDES@TRANSREDES, Fernando
Gonzalez/TRANSREDES@TRANSREDES, Doug Farmer/TRANSREDES@TRANSREDES, Jan van
den Berg/TRANSREDES@TRANSREDES, John Naphan/TRANSREDES@TRANSREDES, John
Vega/TRANSREDES@TRANSREDES, Juan Callau/TRANSREDES@TRANSREDES, Don
Hawkins/Enron@EnronXGate, Nasim H Khan/TRANSREDES@TRANSREDES, Laine A
Powell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

 Subject:;;;;;;; 17/7 - 7:00 p.m. - Update: Emergency

 The situation continues to be stable.; CLHB has reinitated LPG operations to
LaPaz, but continue their inspection.; TR will not reinitiate gas or crude
export operations until we have completed our inspection.; We have formed
joint teams with CLHB and Army personnel to perform the inspection.; It could
take as long as 48 hours, but we'll have a better estimate after we get a
progress report in the morning.;; All crews available systemwide are
mobilizing for inspection of the entire system, but for now our priority
continues to be the lines in the altiplano.; The three stations in the
altiplano have been shut down, bled off, and locked.; Other supervisors
throughout the system have been advised and are on alert.

 Government and regulator continue to be supportive of our shut-down and
inspection action plan.; We have developed a contingency plan with COBEE (the
regional electricity distributor) under which they will redistribute energy
out of spare capacity in Cochabamba to LaPaz; - this should cover LaPaz's
electricity needs during the duration of time we need to complete our
inspection.; The only other significant consumer is a large cement plant in
LaPaz.; We've agreed that they will slow down their operations, and provide
only small, local supplies (industrial concrete demand will be shut-in).

 We did not send a press release on the issue, although we have received
inquiries - our response is that we are concerned about the risk to Bolivians
this action presented, and we are performing an inspection on the system.; We
are avoiding mention of gas stoppage to LaPaz at this time, due to the
volatility of the issue in LaPaz.; Government (VMEH, SIRESE) has agreed with
the message.

 We expect that with the cement plant and power plant off-line, line pack
should be sufficient to keep commercial demand satisfied for a few days.; In
either event, we are working with the local gas distributor to prepare a
notice for LaPaz newspapers instructing gas consumers in the area how to
safely shut-down and restart their equipment in the event that it becomes
necessary.

 The most likely scenario as of now is that Edwin Morales - a local
revolutionary tied to the coca trade - is behind the action.; Morales has had
contact in the past with the Raul Rocha bunch out of Chuquina (Oruro), so
we're still not sure whether this was an act against TR and/or the industry,
or if it is against government.; Morales has just joined forces with another
rebel out of Cochabamba and is planning nationwide road blocks for tomorrow.;
Their agenda is national - they've never isolated TR or our industry as a
whole, although Chaco in the north have been targeted in the past, probably
because they have a field in the middle of Morales' stronghold.; The
political situation here is tenuous with Banzer out and various political
interests looking to fill the leadership void.; We're watching this situation
closely.; The local Army brigade has committed to staying on vigilance for at
least the next few days - once we're comfortable with the operational
situation, we'll discuss a longer-term solution.

 Steve

 ---------------------- Forwarded by Steve Hopper/TRANSREDES on 07/17/2001
06:37 PM ---------------------------

 Steve Hopper
07/17/2001 03:53 PM

To:;;;; nick.tombs@shell.com.br, Johannes.Walzebuck@shell.com.br, Peter E
Weidler/Enron@EnronXGate
cc:;;;;;

 Subject:;;;;;;; Emergency

 ;;;;;;;  ;;;;;;;

 At 1:45 p.m. today, a CLHB line walker discovered a bomb on their LPG line
in the Altiplano 14 km from out SicaSica station.; Our OSSA II (crude exports
to Chile) and GAA (gas to LaPaz) share the same ROW, and would likely have
been taken out with the bomb.; We understand that the bomb, which had a
manual fuse, did not go off, but had been lit and failed to explode.; The
Army has been mobilized to diffuse the bomb, and we consider the immediate
threat neutralized.

 However, given that we have now seen several attempts in the last 10 days of
sabotage against our lines, I have declared a state of EMERGENCY, and will
notify the Enron Crisis team.

 We have shut all Altiplano pipeline operations down, and have mobilized a
joint CLHB/TR/Army team to perform vigilance on the entire altiplano
network.; The immediate result of this is that lights will likely start to go
out in LaPaz within the next few hours - the GAA line is their primary power
fuel supply.; I've notified all relevant government authorities of the
situation, and so far am getting support.; I've also asked the Embassy to
look into the situation, with the understanding that if this is the result of
an organized movement, they might have access to intelligence that could be
helpful.

 Additionally, we've shut down all non-critical maintenance operations
throughtout the rest of the system, and are directing spare personnel to
perform vigilance on the remainder of the system as quickly as possible.;
Until and unless we have information that this threat goes beyond the
altiplano, we will continue operations, with all stations on alert.; We will
kick off the the total system inspection within the next few hours, as soon
as our people complete the overall plan.

 I will keep you posted as things develop.

 Steve


Dear Silicon Valley Leader:

Please plan to join the Silicon Valley Manufacturing Group, San Jose Mayor
Ron Gonzales, Santa Clara County Supervisor Jim Beall and other key
community leaders for a "Santa Clara County Energy Summit II."

The goal of the Summit is simple - and critical: What IMMEDIATE steps can
each of us individually and collectively take to get California through the
summer months, to minimize rolling blackouts.  With that in mind, we will
focus on QUANTIFIABLE deliverables relative to conservation, load management
during peak periods, generation and state policies.

Special thanks to SVMG Member Company, Synopsys, for offering to host the
Summit, which will take place On Friday, May 4, from 8 a.m. (sharp) until 12
Noon at their Sunnyvale company site, 455 North Mary Avenue, Building 2.

Invitations and registration materials to follow.  If you have any
questions, or require additional information, please call the SVMG offices
at 408/501-7864, or simply respond to this e-mail.

 - winmail.dat


David,

I have attached a copy of the Confirmation that we sent to Aquila. They have
read it and returned a signed copy to me. Please let me know if you think
this document is acceptable. If it is I will go ahead and put together the
Transaction between RMT and Australia. If we need to make any changes, I will
send a revised copy to Aquila and then do the back to back transaction.

Thank you,

Jarrod Cyprow (713) 853-5700


That sounds like a great start in France.  Mark


OR
Well, which one is it?  You want to share some information with the rest of
Enron, but you don't know whether it belongs in the ThinkBank or in eMeet.
Here is a handy quiz to help you make the decision.  Answers appear just
below the quiz.
What kind of information do you want to share?
A.  A well-developed idea or suggestion for something that will affect
Enron's bottom line, either through revenue or savings.
B.  A question or a statement that you want someone else at Enron to answer
or discuss.
C.  None of the above.
D.  Both A and B.
If you chose "A," deposit an idea in the ThinkBank's Idea Vault.  If you
chose "B," eMeet is the place for you.  If you chose "C" or "D," send an
e-mail to ethink@enron.com and let us know what you're trying to share.
We'll help you find the right place for it in eThink.

Wednesday, Mar. 29 at 10 a.m. Houston time, join Mark Koenig, executive vice
president of Enron Investor Relations.  Mark will answer questions about the
role of Investor Relations and also provide a stock update.  Remember, if you
can't make the live event, pre-submit your questions now on the eSpeak site.
Mark will be able to address them during his eSpeak, and you can see his
answers in the transcript after the event.

ethink.enron.com


Please be informed that you  have one or more SRRS requests that are
outstanding due to a pending action to approve or reject decision on your
part. Please  go to the SRRS (Lotus Notes desktop icon) and select the
"Requests Awaiting my Approval" option and complete the necessary  action.
More SRRS request information can be seen within the request by clicking on
"Resource Display".

Your response will enable the SRRS process to continue for eventual closure.

Thank you,
Information Risk Management


Susan:  would you please respond to this trader?  thanks.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 01/31/2001 01:52 PM -----

	Erik Deadwyler@ENRON
	01/31/2001 11:40 AM

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

Hi Sara-

I'm trying to obtain financials from a counterparty and need a copy of our
confidential statement?  Can you provide me with this?

thanks

Erik Deadwyler
Physical Trader-Recovered Paper


-----Original Message-----
From: 	Hickerson, Gary
Sent:	Monday, October 22, 2001 11:08 AM
To:	Zufferli, John
Subject:	RE: Currency Hedging

You will violate Enron policy if you do that.

Gary

 -----Original Message-----
From: 	Zufferli, John
Sent:	Monday, October 22, 2001 11:46 AM
To:	Hickerson, Gary; Stuart III, William; Lavorato, John; Milnthorp, Rob
Subject:	Currency Hedging

Given the volatility in the gas market (which is the sole impact on the Canadian power book's US dollar exposure) and the exhorbitant cost involved in hedging multi-year cashflows (i.e. as evidenced by Friday 10/19/2001 trade of -$1,200,000 Cdn new deal value for the 14 year swap that I entered into), I will manage the currency exposure of this book myself, I will hedge appropriately when I see fit and will not accept hedges forced on Enron Canada because of arbitrary position limits set by your department.

John Zufferli


The eThink Team

Do you know what's included in Enron's Code of Ethics?  Do you know what policies affect corporate conduct?  Ask Sharon Butcher, Assistant General Counsel of Corporate Legal, all your questions about our corporate policies today (June 5) on eSpeak at 10 a.m. Houston time.
Can't make the live event?  No worries.  Go to eSpeak (http://ethink.enron.com/eSpeak/exec/default.asp) now and submit your question.  Sharon will try to answer it during her event and you can read the transcript later.

Stop what you're doing!  Go to the Thinkbank (http://nahou-lnapp01.corp.enron.com/eThink/Thinkbank.nsf/HomePage?OpenPage) now!  Notice anything different?


The following attachment is a summary of our California legislative and
regulatory strategy that we have been pursuing.  If you have any objections,
please notify me immediately.

Roger


Jim and Jeff,

The P& L numbers represented below includes a reserve of $40 million attributable to the FERC Refund exposure specific to wholesale.

Thanks,
Wanda

 -----Original Message-----
From: 	Tribolet, Michael
Sent:	Friday, November  16, 2001 3:34 PM
To:	Dasovich, Jeff; Steffes, James D.; Mellencamp, Lisa; Curry, Wanda
Subject:	FW: PG&E settlement offer

Ken Lay called Rick Buy and I up to his office talk about settlement just now.   He would like to settle for liquidity/good news.   Rick Buy is going to discuss with Whalley.

 -----Original Message-----
From: 	Tribolet, Michael
Sent:	Friday, November 16, 2001 3:30 PM
To:	Buy, Rick
Subject:	PG&E settlement offer

Below are the proposed discounts we discussed with Ken Lay this afternoon:

USD millions:
                          Cash from 85       P+L with 85 cent
             Discount   cent sale of claim    sale of claim

Enron      $ 85.0 (17%)       $361.8             +$129.1
PG&E       $237.0 (46%)       $232.6             -$  0.1
Midpoint   $161.0 (32%)       $297.2             +$ 64.5

If the midpoint (value between PG&E and Enron settlement offers) is acceptable from a liquidity and P+L standpoint, propose countering at a discount of $123 million (move half way to midpoint) to provoke a counter offer.   Intent is to settle at midpoint discount of $161 million.  The Excel file is attached.

 << File: m011116.xls >>


Steve,

Krishna wrote a number of matrix manipulation routines.

Vince

Steven Leppard
04/17/2000 06:18 AM
To: Grant Masson/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Vasant
Shanbhogue/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Zimin Lu/HOU/ECT@ECT,
Samer Takriti/Enron Communications@Enron Communications
cc: Stuart Ffoulkes
Subject: Mathematical software libraries

Guys

Do we own/subscribe to any mathematical libraries in C and/or VB?  Our credit
trading group in London needs some well-engineered, documented and
trustworthy matrix manipulation routines for their online system.

I've only seen people using Numerical Recipes book.

Steve


Christian:  1 pm Portland time on Friday - we'll call you

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 06/06/2001 09:29 AM -----

	Holly Keiser@ENRON_DEVELOPMENT
	06/06/2001 07:56 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: RE: Schedule meeting with Mark Taylor

Thank you... it's on Mark's calendar (3:00 pm - Friday, June 8)

Holly Keiser
Enron Americas
Legal Department - EB 3887
713-345-7893 (ph)
713-646-3490 (fx)
Holly.Keiser@enron.com

	Sara Shackleton@ECT
	06/05/2001 06:32 PM

		 To: Holly Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: RE: Schedule meeting with Mark Taylor for Thursday, June 7

Let's schedule this please.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 06/05/2001 06:31 PM -----

	Christian Yoder/ENRON@enronXgate
	06/05/2001 05:45 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: RE: Schedule meeting with Mark Taylor for Thursday, June 7

Good.

 -----Original Message-----
From:  Shackleton, Sara
Sent: Tuesday, June 05, 2001 2:31 PM
To: Yoder, Christian
Subject: RE: Schedule meeting with Mark Taylor for Thursday, June 7

Christian:  How is 3 pm Houston/1 pm  Portland on Friday?

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

	Christian Yoder/ENRON@enronXgate 06/05/2001 11:07 AM 	   To: Sara
Shackleton/HOU/ECT@ECT  cc:   Subject: RE: Schedule meeting with Mark Taylor
for Thursday, June 7

3:30 Thursday, Central Time happens to fall exactly to the minute on a time
when I have to be on the phone with Mark Haedicke and Elizabeth Sager.  I
cannot move that time.  Can we go earlier or move it to Friday?  I am trying
to get the cases to you as soon as I can. ----cgy

 -----Original Message-----
From:  Shackleton, Sara
Sent: Tuesday, June 05, 2001 7:07 AM
To: Yoder, Christian
Subject: Re: Schedule meeting with Mark Taylor for Thursday, June 7

Christian:  Please mark this time on your calendar to speak with Mark T.:
3:30 Houston/1:30 Portland.  We'll call you.

Will Pat Boylston send over 1 or 2 cases for us to review prior to the call?

Thanks.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 06/05/2001 09:00 AM -----

	Holly Keiser@ENRON_DEVELOPMENT 06/05/2001 08:36 AM 	  To: Sara
Shackleton/HOU/ECT@ECT  cc:   Subject: Re: Schedule meeting with Mark Taylor
for Thursday, June 7 << OLE Object: StdOleLink >>

Sorry... you mentioned that in the subject line.

3:30 pm on Thursday.

Holly Keiser
Enron Americas
Legal Department - EB 3887
713-345-7893 (ph)
713-646-3490 (fx)
Holly.Keiser@enron.com

	Sara Shackleton@ECT 06/05/2001 08:19 AM 	  To: Holly
Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT  cc:   Subject: Re: Schedule
meeting with Mark Taylor for Thursday, June 7 << OLE Object: StdOleLink >>

I'd like to meet Thursday, June 7

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

	Holly Keiser@ENRON_DEVELOPMENT 06/05/2001 07:34 AM 	  To: Sara
Shackleton/HOU/ECT@ECT  cc:   Subject: Re: Schedule meeting with Mark Taylor
for Thursday, June 7 << OLE Object: StdOleLink >>

Sara -- I've scheduled 3:00 PM following today's Legal/Credit meeting.  If
you prefer later, please let me know.

Thanks!
Holly Keiser
Enron Americas
Legal Department - EB 3887
713-345-7893 (ph)
713-646-3490 (fx)
Holly.Keiser@enron.com

	Sara Shackleton@ECT 06/04/2001 06:12 PM 	   To: Holly
Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT  cc:   Subject: Schedule meeting
with Mark Taylor for Thursday, June 7

Does Mark have time in the afternoon to meet with me and Christian Yoder
(Portland - 2 hours earlier than CST)?  The topic is "Washington State
PUD's".  I'd schedule about an hour.  Thanks.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Brunell or Bledsoe - which one are you willing to trade and for what?  I
could give a rb and a WR


Check to see if King or Herndon know him from their days at Dynegy.

 -----Original Message-----
From: 	Will, Lloyd
Sent:	Tuesday, September 04, 2001 8:06 AM
To:	Presto, Kevin M.
Subject:	FW: Kevin White Resume

Any interest.

Seems like an experienced physical trader for NE MW or SE.

 -----Original Message-----
From: 	Palmer, Johnny
Sent:	Monday, August 27, 2001 9:39 AM
To:	Will, Lloyd
Cc:	Nolly, Qiana
Subject:	Kevin White Resume

 << File: Kevin White Resume.doc >>

Lloyd,

To whom should I send this resume?  By the way, great presentation on Friday?

Thanks,
Johnny


Hello all!

Since we all seemed to survive the "Y2K" bug, we are going to celebrate!

Our "Holiday Millenium" party will be this Saturday.

See attached for information, if you have questions, please call me at 3-5290.

See you there!

Shirley


team,

Do not send any HA 24 schedules that you do not intend to send.  In other
words, remove all schedules that are not the specific ones you want to send.
We have been sending zero schedule when we don't want to be.  If we go back
to only sending our HA 24 schedules, we can avoid this problem.

Thanks
Jesse


It is with sadness and regret that we announce that Cliff Baxter is resigning
as an employee of Enron.  We are happy, though, that Cliff,s primary reason
for resigning is to spend more time with his family.

Cliff is a unique talent.  His creativity, intelligence, sense of humor, and
straightforward manner have been assets to the company throughout his
career.  He will be missed.

Cliff joined Enron in 1991 and was a key member of the team that built Enron,
s wholesale business.  Before becoming Vice Chairman of Enron, Cliff served
in a variety of positions in Enron,s wholesale businesses, culminating in his
appointment as Chairman and Chief Executive Officer of Enron North America in
1999.

We have asked Cliff, and he has agreed, to continue in a consulting role for
the company while concluding negotiations on a number of key asset
dispositions.

Please join us in thanking Cliff for his service to the company and in
wishing him the very best.


Torrey, the 2 deals with  Sempra should not be terminated.  Only terminate
the 7 deals w/NJR Energy.  Thanks.   DJ

Torrey Moorer
07/07/2000 03:34 PM
To: Tana Jones/HOU/ECT@ECT
cc: Sheri Thomas/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT
Subject: Terminate EOL Trades

Hi Tana,

I have nine EOL transactions which Dick Jenkins needs to have termination
agreements done up on. The terminations arise from mutual agreement after
some bad prices were traded each way. Please feel free to call me if you have
any questions, or if there is any additional information you may need. Thanks!

Torrey Moorer
x36218


Louise,

The GTV II team has a weekly status meeting on Mondays. Yesterday, we had our
first status meeting. Please see below for the current status of the project.
Please see the attached file for the update of project timeline in Microsoft
Project.

GTV status meeting attendees:  Zhiyong Wei, Karima Husain, Francis Lim,
Jeremy Wong, Bill Fortney, Nayan Dattani, Mike Swaim, Dave Nommensen, Russ
Severson, George Grant.

Accomplishments:
? Incorporating physcial deal positions in TDS:
o Changes to CPR reader process have been completed.
o Changes for the view aggregation are 80% done.
o Changes for the position manager are in progress and are about 30%
completed.

? Single point of deal entry for term deals:
o Establishing communication between TDS client & Sitara server is in
progress.

? Gas Daily deals:
o Changes to TDS deal valuation are in progress.
o Creating GDI Calc in ERMS is in progress.

? Live feeds for Gas Daily/intra-month curves:
o Development of live feeds is in progress. Goef has been contacted regarding
how to use the features.

Plans for the week ending 3/30/01:
? Continue the development of GTV II phase 1.
? Commence the work on GTV II Phase 2 inception document.

Issues:
None.

Regards

Zhiyong


-----Original Message-----
From: 	Comnes, Alan
Sent:	Thursday, September 13, 2001 11:40 AM
To:	Mara, Susan; Alvarez, Ray; 'Dan Watkiss'
Cc:	'Gfergus@brobeck.com'; Walton, Steve; Lawner, Leslie; Cantrell, Rebecca W.; Fulton, Donna; Dasovich, Jeff; Nicolay, Christi L.; Steffes, James D.; 'jalexander@gibbs-bruns.com'; Allen, Phillip K.; Noske, Linda J.; Perrino, Dave; Black, Don; Frank, Robert; Miller, Stephanie; Tycholiz, Barry; Novosel, Sarah; Thome, Jennifer; Hall, Steve C. (Legal); Lindberg, Susan
Subject:	RE: Marketer Support of Generator Motion on Credit Issues

Agreed. The generator motion is very complete so it would seem to me that our pleading in support can be very short.
GAC
-----Original Message-----
From:	Mara, Susan
Sent:	Thursday, September 13, 2001 10:52 AM
To:	Alvarez, Ray; 'Dan Watkiss'
Cc:	'Gfergus@brobeck.com'; Comnes, Alan; Walton, Steve; Lawner, Leslie;
	Cantrell, Rebecca W.; Fulton, Donna; Dasovich, Jeff; Nicolay, Christi
	L.; Steffes, James D.; 'jalexander@gibbs-bruns.com'; Allen, Phillip K.;
	Noske, Linda J.; Perrino, Dave; Black, Don; Frank, Robert; Miller,
	Stephanie; Tycholiz, Barry; Novosel, Sarah; Thome, Jennifer; Hall, Steve
	C. (Legal); Lindberg, Susan
Subject:	RE: Marketer Support of Generator Motion on Credit Issues

We should definitely support it.  We have the very same issues with the ISO.
-----Original Message-----
From:	Alvarez, Ray
Sent:	Thursday, September 13, 2001 10:27 AM
To:	'Dan Watkiss'
Cc:	Gfergus@brobeck.com; Comnes, Alan; Walton, Steve; Mara, Susan;
	Lawner, Leslie; Cantrell, Rebecca W.; Fulton, Donna; Dasovich, Jeff;
	Nicolay, Christi L.; Steffes, James D.; 'jalexander@gibbs-bruns.com';
	Allen, Phillip K.; Noske, Linda J.; Perrino, Dave; Black, Don; Frank,
	Robert; Miller, Stephanie; Tycholiz, Barry; Novosel, Sarah; Thome,
	Jennifer; Hall, Steve C. (Legal); Lindberg, Susan
Subject:	RE: Marketer Support of Generator Motion on Credit Issues

Dan, I am interested.  I know that Sue Mara spoke with Ron on this subject also, although I was not on the call.  The matter was not discussed on our Western Wholesale call this morning either, since I did not become aware of it till later.  I would therefore like to receive input from Sue and others on our team about this, getting final sign off to proceed from Linda Robertson and Jim Steffes.  If we elect to proceed, it would be appropriate to bill all participating marketers in equal shares.  Thanks.  Ray
-----Original Message-----
From:	Dan Watkiss [mailto:dwatkiss@bracepatt.com]
Sent:	Thursday, September 13, 2001 12:42 PM
To:	Alvarez, Ray
Cc:	Gfergus@brobeck.com
Subject:	Fwd: Marketer Support of Generator Motion on Credit Issues

What do you think?
Jeffrey D. (Dan) Watkiss
Bracewell & Patterson, LLP
2000 K St., N.W.
Suite 500
Washington, D.C.   20006-1872
(202) 828-5851
dwatkiss@bracepatt.con
jdwatkiss@aol.com

-----Original Message-----
From:	Ronald Carroll [mailto:rcarroll@bracepatt.com]
Sent:	Thursday, September 13, 2001 11:09 AM
To:	callen@akingump.com; alaw@avistaenergy.com;
cgoligoski@avistaenergy.com; ddickson@avistaenergy.com;
nolan.steiner@avistaenergy.com; hhs@ballardspahr.com;
haskell@bh-law.com; biggsbg@BP.com; marzmj@BP.com; Andrea Settanni;
Deanna King; Dan Watkiss; Jacqueline Java; Kimberly Curry; Paul Fox;
Tracey Bradley; gfergus@brobeck.com; phillip_fantle@cargill.com;
karen.cottrell@constellation.com; lisa.decker@constellation.com;
randall.osteen@constellation.com; breilley@coral-energy.com;
mmilner@coral-energy.com; gmatthews@edisonmission.com;
Greg.jones@elpaso.com; rick.warman@elpaso.com; Comnes, Alan; Perrino,
Dave; jsteffe@enron.com; Robertson, Linda; Alvarez, Ray;
rfrank@enron.com; smara@enron.com; snovose@enron.com; eperrigo@epsa.org;
jsimon@epsa.org; Jthompson@idacorpenergy.com; jchristian@jonesday.com;
kjmcintyre@jonesday.com; rwaters@jonesday.com; CANDREAS@LLGM.COM;
DDANNER@LLGM.COM; LACKER@LLGM.COM; SBEHREND@LLGM.COM;
david.tewksbury@lw.com; kirvin@mofo.com; kzeitlin@mofo.com;
vwei@mofo.com; fnorton@morganlewis.com; jmcgrane@morganlewis.com;
kacurry@msn.com; ckrupka@mwe.com; myuffee@mwe.com; ppantano@mwe.com;
harry.singh@neg.pge.com; kathleen.stallings@neg.pge.com;
david.facey@powerex.com; doug.LITTLE@powerex.com;
mike.macdougall@powerex.com; dmperlman@powersrc.com;
lisa.decker@powersrc.com; jadillon@pplweb.com; donk@prestongates.com;
JOHNL@prestongates.com; sandraR@prestongates.com; mphilips@pwrteam.com;
mphillips@pwrteam.com; rbeitler@sempratrading.com; kbarron@skadden.com;
rejosephson@stoel.com; sjkaplan@stoel.com; ayudkowsky@stroock.com;
tabors@tca-us.com; achau@tractebelpowerinc.com;
amie.colby@troutmansanders.com; antoine.cobb@troutmansanders.com;
james.beh@troutmansanders.com; sangle@velaw.com; cfr@vnf.com;
mam@vnf.com
Subject:	Marketer Support of Generator Motion on Credit Issues

Cheryl Ryan has raised the suggestion of a joint answer by the Marketer Group in support of the Generators' recent motion on credit issues.  If so, this would need to be done asap.  Please let me know if you are interested in joining in such a pleading.
Thanks.  Ron


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