Stand up, Texas, against California's bullying
Houston Chronicle, 05/24/01

Markets / Your Money Senate Shift to Ripple Across Industries Politics:
Jeffords' decision could broadly affect range of sectors, from drugs and HMOs
to tobacco and energy.
Los Angeles Times, 05/24/01

Brazil asking power users to cut back
Houston Chronicle, 05/24/01

California Official Cites Evidence of Electricity Price Manipulation
KRTBN Knight-Ridder Tribune Business News: Contra Costa Times - Walnut Creek,
California, 05/24/01

Shrugging off energy ties / GOP gubernatorial hopeful downplays his Texas
investments
The San Francisco Chronicle, 05/24/01

India Appoints Nominee To Dabhol Power Dispute Panel
Dow Jones Asian Equities Report, 05/24/01

INDIA: New Delhi aims to help Enron patch up with utility.
Reuters English News Service, 05/24/01

POLAND: ANALYSIS-Central European gas markets head for shake-up.
Reuters English News Service, 05/24/01

India: A 'hurt' Godbole quits, persuaded to stay on
Business Line (The Hindu), 05/24/01

INDIAN GOVT TO ACCEPT PROPOSALS TO SETTLE POWER DISPUTE
Asia Pulse, 05/24/01

Endesa to sell coal-powered plants operated by Electra de Viesgo (Endesa
incluye una mayoria de centrales de carbon en Viesgo antes de venderla)
Expansion, 05/24/01

Is Pawar playing power politics with Enron?
The Economic Times, 05/24/01

Godbole does a Mamata; quits, then back
The Economic Times, 05/24/01

COMPANIES & FINANCE THE AMERICAS: Dynegy on the lookout for deals
Financial Times; May 24, 2001

May 24, 2001
Houston Chronicle
Stand up, Texas, against California's bullying
By JONATHAN WILCOX
LADIES and gentlemen: May I present to you the Hon. Bill Lockyer, attorney
general of the state of California, from the May 22 Wall Street Journal:
"I would love to personally escort (Enron Corp. Chairman Kenneth) Lay to an 8
x 10 cell that he could share with a tattooed dude who says, `Hi, my name is
Spike, honey.' "
When you stop gagging, join me in celebrating Lockyer's crude, lewd and
unsubdued behavior. It has stripped away whatever veneer of respectability
California officials had by virtue of the offices they hold and exposed them
as braggarts and bullies of the first order. But they also wield enormous and
destructive power -- and they intend to use it.
The sooner Texans realize this the better.
As citizens of the state that is home to much of the nation's energy
production, the people of Texas are intimately familiar with the booms and
busts of the oil and natural gas industries. Sometimes, prices are high, new
supply is nigh and willing buyers can only sigh.
Other times, gluts occur, demand fluctuates, competition grows ruthless and
revenues seep out like the last remnants of black crude from a stripper well.
These are the principles of American capitalism, free market forces and the
give-and-take and push-pull that separate this nation's economic capacity
from all others. It is a fundamentally fair system, it has served us
remarkably well and every time we have tampered with it, it has been to our
ultimate detriment.
Witness California's partial "deregulation" of its electricity market.
The Golden State, for all its vanity, pride and preening machismo, actually
knows very little of tough times. Sure, we can handle the occasional
spectacular episode, like an earthquake or wildfire. That's part of the
thrill of living in California.
But when it comes to our economic expectations and their interrelationship
with our desired lifestyle, we only know the California way: more, more often
and with no end in sight.
And if we don't get what we want, when we want it, it's someone else's fault.
In that light, it is no surprise that we are saddled with our current
governor, Gray Davis, and our current law enforcement chief, the
aforementioned Lockyer.
Despite his frequent jittery appearances on national television, Davis is a
politically shrewd man. He may not know which public policy choices are best
for the state's future, but that's not his highest priority.
Item No. 1 on Davis' "To Do" list is to get re-elected next year. But this
has been complicated by the state's year of energy woes, Davis' ineffectual
response and the fact that California is a largely one-party state.
Of California's eight statewide elected offices, seven are held by Democrats,
including Davis and Lockyer. You don't have to be a Delphic oracle to discern
that if Davis gets tossed out, he will take more than a few of his political
brethren with him.
So, as California tiptoes toward its long, hot summer of rolling blackouts
and unprecedented electricity shortages, Davis is busy digging his personal
bomb shelter. He's preparing for the big one, calculating that while the
damage will be great, and the fallout potentially lethal, he and the other
cockroaches, like Lockyer, will survive.
How will they do this? By finding some fall guys to take the rap.
Call it the Texas two-step: First, Davis declares "war" on Texas energy
producers. Next, Lockyer says he expects to file civil charges against
suppliers, with, he hopes, criminal counts to follow.
For a demonstration of how not to deal with Lockyer and other California
aggressors, examine the rejoinder of Mark Palmer, Enron's vice president for
corporate communications. Lockyer's comment about Lay, he said, "is so
counterproductive that it doesn't merit a response."
Wrong. Weak. Ineffective. Decency in the face of demagoguery may be
dignified, but it's little more than an invitation to further abuse and, for
Enron, public villainy.
Enron had a chance to do something corporations under hostile government fire
only dream about: Embarrass, disarm and neutralize a corrupt public official
out to smear their good name.
By challenging Lockyer to either reassess or renounce his remarks, Enron
could have injected common sense and rare truth into a debate that has become
twisted and warped by the tirades of California officials. Best of all, Enron
could have extracted the kind of retraction that would have adorned Lockyer
with the scarlet "A" of contrite politicians: apology.
Lockyer and other state officials may not yet know the ceiling of scorn Enron
will tolerate from them. But they surely know the floor: Joking with
journalists of the pleasure they would take from the arranged assault of
Kennth Lay in a California prison.

Business; Financial Desk
Markets / Your Money Senate Shift to Ripple Across Industries Politics:
Jeffords' decision could broadly affect range of sectors, from drugs and HMOs
to tobacco and energy.
JOSH FRIEDMAN
TIMES STAFF WRITER

05/24/2001
Los Angeles Times
Home Edition
C-1
Copyright 2001 / The Times Mirror Company

The expected defection of Sen. James M. Jeffords of Vermont from the
Republican Party could markedly affect the drug, HMO, defense, credit card
and tobacco industries, money managers and investment analysts said
Wednesday.
"I don't see any upside for the [stock] market. This looks like gridlock of
the worst possible kind," John Carey, manager of the Pioneer Fund, said of
the switch, which would give the Democrats control of the Senate for the
first time since 1995 and increase their ability to slow President Bush's
legislative agenda.
"The market was beginning to feel confident that the regulatory burden on
business would ease," he added, "and there was even hope for
business-friendly legislation. But no longer."
Analysts said the clearest winners in a switch to a Democratic Senate could
be lenders Fannie Mae and Freddie Mac, whose status as government-sponsored
enterprises is expected to remain intact. Both stocks were up strongly
Wednesday despite a weak market.
Still, most analysts said it's unlikely that a change in the balance of
congressional power would lead to what Carey termed "radical anti-business
legislation." And President Bush's income tax cut, passed by both houses and
headed for a conference committee, also is expected to remain intact.
"But I wouldn't expect another tax cut next year, not anymore," said Greg
Valliere, chief political analyst in Charles Schwab's Washington Research
Group. "The Jeffords defection, if it happens, doesn't mean the Bush agenda
is in tatters. It does mean gridlock for a lot of businesses."
Here's how some major industries could be affected:
* Drug makers
A Democratic Senate could produce a public relations nightmare for the
pharmaceutical industry, already under scrutiny over the pricing of some
medications.
"They can apply more heat to the pharmaceutical industry and inflame issues,
such as [supposedly] charging too much for drugs," said Tom Miller, a policy
analyst with Cato Institute, a conservative think tank.
"There's a headline risk. You know, 'Ted Kennedy Holding Hearings on Drug
Companies,' " added Valliere. Kennedy (D-Mass.) is in line to be chairman of
the Senate Health Committee.
Analysts said such tactics aren't likely to result in legislation, given
Republican control of the House.
Still, Andy Laperriere, a political economist at International Strategy &
Investment Group in Washington, said Democratic Senate control at least would
revive the "potential threat of price controls in some form."
* HMOs
Those stocks were hard hit Wednesday, perhaps as investors envisioned
industry critic Kennedy shaping a so-called patient's bill of rights or
Medicare reform.
Still, a power shift could work in Bush's favor if Kennedy and fellow
Democrats were to block administration health-care proposals at every turn,
said Alan Skrainka, chief market strategist at brokerage Edward Jones. The
GOP could end up gaining seats in the midterm election next year, he said, by
campaigning against stonewallers.
* Defense and aerospace
Most analysts said the expected shift would probably have little impact on
the defense industry, even if the leadership changes in the key committees
such as Armed Services and Appropriations, since both sides of the aisle
agree on the need for more defense spending.
But debate over already contentious issues such as missile defense and
whether to restart production on the B-2 Stealth bomber could intensify.
"These would be bones of contention anyway but maybe more so with the
Democrats' added power in the Senate," said Paul H. Nisbet, analyst with JSA
Partners.
Some analysts said defense stocks have run up since last summer on hopes of
increased spending, perhaps leaving them vulnerable.
* Credit card issuers
The bankruptcy reform bill approved by both houses, considered a boon for
major credit card issuers like MBNA and Bank One, could be watered down or
even killed, Laperriere said.
* Energy
Some money managers suggested environmental restrictions pushed by emboldened
Democrats could hinder a variety of energy companies.
"This news is good for the caribou, that's about it," said Pioneer's Carey,
referring to the chances that a Democratic Senate could block efforts to
drill for oil in sensitive arctic areas. "They can breathe easier."
But a Senate shift might not hurt energy companies as much as some expect,
analysts said. If the Democrats use their Senate control to block elements of
the president's new energy plan, it could be a plus for wholesale power
merchants and traders such as Enron, Reliant Energy and Duke Energy, said
Merrill Lynch analyst Donato J. Eassey.
"With gridlock you're going to have uncertainty, and uncertainty causes
volatility, which is good for [traders]," Eassey said.
Bush's plan to open the Arctic National Wildlife Refuge to limited oil and
gas exploration was politically dicey even before the possible Senate change,
several analysts said.
The majority of oil field services firms might actually do better if the
Alaskan proposal failed, according to analyst Poe Fratt of A.G. Edwards. Only
a handful of such companies stand to benefit from development of the wildlife
refuge tract, he said.
If exploration is blocked there, "more companies will benefit from drilling
elsewhere," he said.
* Tobacco
Huge jury verdicts against cigarette makers in recent years "really started
when industry executives got dragged before the Senate," Laperriere said, so
tobacco companies wouldn't look forward to another round of hearings. He
called new hearings "a real possibility" if the Democrats are running the
Senate.
* Fannie and Freddie
Laperriere said the threat of policy changes that would affect regulation of
Fannie Mae and Freddie Mac would be diminished under a Democratic Senate.
He noted that instead of Phil Gramm (R-Texas) leading the Senate Banking
Committee, it would be led by Paul S. Sarbanes (D-Md.), a major supporter of
the popular lending agencies.
* Telecommunications
Some analysts said chances for deregulation--for example, allowing the Baby
Bells fully into the long-distance market--won't survive a power shift in the
Senate.
"There was hope that the Telecommunications Act, which has actually impeded
competition, might be revisited," Carey said. "If this [Jeffords situation]
is bad news for any industry, it's telecom."
But several analysts and investors said the market impact of the Jeffords
defection already has been overblown. "The biggest thing we needed from this
administration was the tax cut, and it looks like we're getting it," said
Robert Nichols, chairman of Windward Capital Management in Los Angeles.
*
Times staff writers Denise Gellene, Thomas Mulligan and Peter Pae contributed
to this report.
RELATED STORIES
Switch: Jeffords has told aides he will quit the GOP today. A1
Markets: Stocks fall as investors mix caution with confidence. C4

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

May 24, 2001
Houston Chronicle
Brazil asking power users to cut back
Officials want to pare consumption by a fifth
Copyright 2001 Houston Chronicle News Services
SAO PAULO, Brazil -- The towering offices of Banco Itau and Microsoft Corp.
in Brazil's financial heartland greeted nightfall with their trademark lights
turned off.
Store owners celebrated astronomic weekend sales of energy-saving lamps.
That's good news as the government asks the nation to chop 20 percent off
energy consumption to avoid widespread blackouts and to haul South America's
biggest country and economy out of a chronic power shortage sparked by
drought.
"We are in the hands of the public. If people manage to economize 20 percent,
the likelihood of blackouts will be very small," said Mauro Arce, Sao Paulo
State energy secretary and member of an anti-crisis task force.
The plan to stave off California-style electricity cuts has borne encouraging
results so far. The program asks consumers, companies and industry to cut
electricity use by 15 percent to 25 percent, with the threat of price
surcharges of 50 percent to 200 percent. But it will come at a cost.
Economists fear rationing and its consequences could knock Brazil's economic
growth to less than 3 percent from expectations of 4 to 4.5 percent.
Government officials only say it will slow the economy but will not predict
how much.
And it may trigger moves by the government to encourage the aggressive power
plant program that has long been needed. Power plant builders, including
companies with big presences in Houston, have delayed plans to build plants
because they fear losses from the risk from local currency devaluations.
Rationing officially begins June 1 across most of Brazil, although its
biggest cities have already dimmed street lighting, and consumers have turned
to candles.
The government estimates it needs to expand the country's generation capacity
by 50 percent, or 31,000 megawatts, by 2008 at a cost of about 33 billion
reais, or $14 billion.
Brazil's power shortage has been hidden over the years by overuse of
reservoirs. The government increased generation in years with good rain by
failing to let the reservoirs fill to capacity. Hydroelectric power is
responsible for about 85 percent of Brazil's generation capacity.
"In the last 40 years there have been plenty of droughts, but we've never
been forced to ration energy," said Lido Luis Sauer, an energy-studies
professor at the University of Sao Paulo.
Reservoirs, the professors said, were often allowed to fill only to 70
percent of capacity. Reduced rainfall has cut the reservoir levels to as low
as 30 percent.
"We're on the verge of trying to generate power with mud," Sauer said. "We've
been warning them for years that this risk exists, but they told us `don't
panic.' "
For now, the power grid here depends on the weather and the cooperation of
the public.
If water levels fall farther, the country may need to cut up to 40 percent of
consumption, Arce said. Rationing is set to last through November, when the
rainy season resumes.
With cooperation and the weather on its side, the energy task force will just
need some understanding from the public.
In an early sign of irritation, Sao Paulo Internet company ATN Internet filed
a lawsuit seeking a judicial ban on power cuts. And Supreme Court President
Marco Aurelio Mello said some of the government's measures violated the
constitution.
"Unfortunately, the filing of injunctions and lawsuits has become a national
sport," said Pedro Parente, head of the task force. "The situation today is
serious. We need this to be understood by the judiciary."
If the public cooperates, Parente said the government could relax some of its
rationing measures. The task force had banned energy contracts for new
commercial or industrial projects.
Brazil's government realizes it has to end the drought in power plant
construction and is considering a program to protect some electricity
utilities from currency risk to attract the $14 billion it needs for new
power plants.
Companies such as AES Corp., Duke Energy Corp. and El Paso Energy Corp. have
delayed or limited expected investment in natural gas-fired generation plants
on concern that government rules limit their ability to pass along increases
in dollar-denominated fuel costs to electricity consumers who are billed in
reais, the local currency.
Devaluations cut the revenues of the power plant builders, but not their
expenses.
"The government hasn't had a policy to attract investment to generation,"
said Frank McGann, an oil analyst with Merrill Lynch & Co. in New York. "An
adjustment in gas prices is a major step forward, which should have been
taken two years ago."
The failure to build plants has come despite natural gas supplies piped in
from Bolivia, Argentina and fields of Brazil's Atlantic coast and a national
"emergency plan" to encourage the building of dozens of new plants to make up
the shortfall.
A new natural gas supply contract with power producers may spur some
much-needed construction.
Under the currency guarantee proposal, which could be adopted as government
policy as early as this week, Petroleo Brasileiro SA, the state-controlled
oil company, which is the lead investor in the country's major pipelines,
would sell gas to generators under a one-year contract with a fixed price in
reais, said Energy Minister Jose Jorge de Vasconcelos Lima.
If the dollar price of gas rose during the contract, Petrobras would charge
the difference to a special account. The generator would pay off that
account, plus interest and Brazilian inflation, by including them as part of
the next one-year, fixed price contract at the same time that the government
raises consumer power rates, a spokeswoman for the Energy Ministry said.
A utility now has to pay Petrobras and other distributors the market rate,
but is limited in the amount of the increase it can pass on to consumers.
With rationing likely to raise distributors' costs -- slashing profits more
-- these companies are reluctant to invest in any new venture, including
generation.
"It has never been decided who will pay for foreign exchange losses in the
gas contracts," said Luiz Maurer, vice president for the Brazilian
association of energy trading companies, as well as head of regulatory
matters for Enron in Latin America.
Enron, for its part, is moving ahead with plans to build about 800 megawatts
of new generation capacity. The move, as well as plans by Petrobras to become
a minority investor in a series of gas-fired plants, is a direct result of
the same problem.
With other companies holding back on generation projects, Enron and other gas
distributors need a market for their natural gas. AES said recently it may
cancel $240 million in investments in three plants.
"If we don't build plants or help others build them, we will be in an even
worse situation," said Ron Vaz Moreira, chief financial officer of Petrobras.
"We won't have any market for our gas."

California Official Cites Evidence of Electricity Price Manipulation
Mike Taugher

05/24/2001
KRTBN Knight-Ridder Tribune Business News: Contra Costa Times - Walnut Creek,
California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

An investigation into electricity prices has turned up evidence that
generators are throttling their power plants up and down to drive up prices,
according to California's top utility regulator.
Loretta Lynch, president of the state Public Utilities Commission, said
Wednesday that an investigation started last year to examine electricity
prices, and which later turned to examine unprecedented numbers of power
plant outages, has found instances where generating units were backed down
until electricity emergencies were declared and then brought back up in such
a way as to maximize profits.
"What we saw was a pattern of individual behavior," Lynch said.
Generators acknowledge that they vary the output from their power plants, but
say they do so for legitimate business reasons. Included among those reasons
is a little-known tactic to insure themselves against breakdowns that would
be limited under a federal order that is to take effect next week.
Although Lynch would not reveal more specifics, her comments, which echoed
revelations she made before a state Senate committee last week in Southern
California, come as accusations, legal threats and rhetoric are all swirling
to a boil.
Earlier this week, Attorney General Bill Lockyer, whose office is working
with the PUC in one of several ongoing electricity market investigations,
reportedly said that he wanted to escort Enron Corp. Chairman Kenneth Lay to
a prison cell "that he could share with a tattooed dude who says, `Hi, my
name is Spike, honey."'
The heated rhetoric and continuing legal threats have infuriated generators,
who continue to trot out figures showing that they are running power plants
harder than ever.
"There's nothing that gets under our skins more than somebody --some
government official -- who is ill-informed making those judgments," said Tom
Williams, a spokesman for Duke Energy, a North Carolina-based company that
owns three major power plants in California and is building a fourth.
Duke generated 50 percent more electricity from those plants last year than
it did the previous year, Williams said. And the company is on track to
generate even more this year, he added.
But Lynch and other state leaders are becoming increasingly hostile in their
remarks about the half- dozen out-of-state power companies that bought
utility-owned power plants in 1998 and 1999 as the state moved to restructure
the electricity industry.
Lynch said state regulators are at least a month away from taking legal
action, but she also said that in addition to looking at power plant outages,
the investigation was looking at patterns in the way power plants are run,
allegedly to influence prices and then capitalize on them.
"There are several ways the generators game the system," she said.
The companies acknowledge they might limit output because of environmental
restrictions and in situations where the cost of running a plant is higher
than the price they could get for electricity at a given point in time.
But there is another reason, too. It is a practice that has troubling
implications because it sets up a situation where the higher prices go, the
more incentive companies have to hold back power.
Documents filed with the Federal Energy Regulatory Commission show that some
companies ease off their units' throttles in order to insure themselves
against the possibility of a breakdown at another unit. Their logic is this:
Energy companies typically sell electricity in advance, so they have an
obligation to provide that electricity to their buyers. If they are running
at 100 percent capacity and a unit breaks down, the company has to scramble
to buy electricity at high, last-minute prices in order to meet its
contractual obligations.
Last summer, for example, a large, 750-megawatt unit at Duke's Moss Landing
power plant broke down, and Duke found itself spending $1.2 million an hour
to meet its contracts.
By holding some of their power-generating capacity in reserve, the companies
can insure themselves against a breakdown somewhere else. And the higher
prices go, the more insurance they might want to keep.
"That is a rationale they are using," said PUC energy division director Paul
Clanon.
Duke, Mirant Corp. and Pacific Gas & Electric were among the companies who
objected to a draft order from federal regulators that would put an end to
the practice of withholding power from the spot-market to cover the
possibility of a breakdown.
In papers that Mirant filed with FERC, the Atlanta-based generator said that
if its ability to withhold power in that way was restricted, then regulators
should allow the company to charge even more for its electricity.
But FERC shot that argument down, saying that although it is reasonable for a
company to not sell all of its electricity ahead of time, there is no reason
to hold back power from the hour-to-hour spot market, as Mirant wanted to do.
The federal commission said that, contrary to Mirant's claims, "the generator
faces no financial risk" if it is forced to sell all its available power on
the spot market.

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

NEWS
Shrugging off energy ties / GOP gubernatorial hopeful downplays his Texas
investments
Carla Marinucci
Chronicle Political Writer

05/24/2001
The San Francisco Chronicle
FINAL
A.3
(Copyright 2001)

Wealthy GOP gubernatorial hopeful Bill Simon Jr., on a campaign stop
addressing California's power crunch yesterday, kicked off his own personal
energy crisis when he confided to an energy executive, "I'm an oil and gas
man from way back."
Simon, son of the late Nixon Treasury Secretary William E. Simon, later
insisted that he misspoke.
But in his first open campaigning in Northern California, the Los Angeles
businessman and philanthropist acknowledged both energy investments and his
role as a former board member of Houston's Hanover Compressor Co. The
publicly traded energy-related firm is a market leader in natural gas
compression and counts among its partners the Texas energy giant Enron.
Simon, who has also invested in educational technologies, Internet firms and,
most recently, South of Market real estate in San Francisco, stressed
yesterday that stocks in energy-related firms are only a small part of his
portfolio.
But ties to a Texas energy firm could negatively affect his first run for
public office in California. A Field Poll released this week showed an
increasing number of Californians holding energy firms responsible for power
shortages.
And, as President Bush prepares to visit the state next week, Texas oil and
gas firms have specifically been the target of Gov. Gray Davis, who asserts
that their hunger for profits accounts for the crisis.
Hanover Compressor, traded on the New York Stock Exchange under the symbol
HC, has 2,700 employees and had an estimated worth of $2.6 billion on April
30, according to a recent financial report.
A 1996 report in Oil and Gas Investor magazine described Hanover as a
fast-growing, profitable innovator in technologies to compress and transport
natural gas. The firm signed a $130 million deal with Enron Capital and Trade
Corporation in 1995, according to the magazine.
Yesterday, Simon insisted that he is not strongly tied to the firm, and said
that if he runs, he will release financial statements showing his holdings.
"I'm not an oil and gas man," Simon told The Chronicle. "Speaking loosely, I
said I have experience in looking at oil and gas investment opportunities.
"I was one of a group. I was on the board for a little bit," he said of his
relation to Hanover. "I still have a small piece. . . . We still have some
ownership of it . . . (but) I'm not active, never really was."
The focus on Simon's energy holdings came as the prospective candidate toured
Lawrence Livermore National Laboratory.
Simon also heard presentations -- and pitches for venture capital - - from
two energy executives: Rick Jeter, who heads X.L. Operating, a Fort Worth,
Texas, oil and gas producer; and Steve Doyle, chief executive of Clean Energy
Systems. As Simon met with them after their presentations, his greeting to
Doyle, overheard by reporters, was, "I'm an oil and gas man from way back."
"Hanover Compression was one company that we started 10 years ago now," he
explained to reporters. "It promotes the efficient use of gas. It helps it
come out of the ground. It helps it be transported. It's good technology.
"We have to continue to focus on these kinds of energy efficiencies," he
said. "This is our way out, ultimately, of the energy crisis."
Asked the extent of his financial interest in that and other energy-related
firms, Simon could not provide specifics. "I'd have to get you those
numbers," he said.
But he said, "We've looked at a broad variety of opportunities in virtually
every industry in the country. Oil and gas is one. . . . I'm not specific to
this industry. I'm an eclectic investor."
On energy issues, Simon said he would be "willing to look at" expanding oil
drilling in California, though he said he was opposed to offshore drilling.
He said he could support "temporary" price caps on the wholesale costs of
energy, but insisted any details would require more study. "You have to know
how urgent the problem is with respect to the supply and balance," he said.
Asked if Davis has been fair in criticizing Texas firms, Simon said, "I think
he ought to quit pointing fingers and start focusing on solutions."
But he said he did not yet have a detailed energy plan, adding, "We're
putting it together right now."
Simon, 50, said he expects to make his announcement about a gubernatorial run
the first week in June.
He told potential volunteers yesterday he would be a "major investor" in his
campaign, but would also raise funds for the estimated $40 million to $60
million needed in a gubernatorial race.
Simon said he is exploring his first political run because "I'm always
interested in being of service. I think here's a place I could be of some
help."
But "the reason I'd like to seek the office of governor, as opposed to
controller or even run for the Assembly, is that's where we have to focus our
attention," he said. "If you have a weak top of the ticket, you have less of
a chance at being elected further down on the ticket. Normally, I'm just
working my way up, paying my dues, but in this situation, I don't know we
have that option."

PHOTO (2); Caption: (1) Bill Simon Jr. listened to a presentation at Lawrence
Livermore National Laboratory while former U.S. Energy Secretary John
Herrington sat behind him., (2) On a campaign swing through Northern
California, Bill Simon Jr. got a lesson in forensic science at Lawrence
Livermore National Laboratory. / Photos by Michael Macor/ The Chronicle

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

India Appoints Nominee To Dabhol Power Dispute Panel

05/24/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

BOMBAY -(Dow Jones)- The Indian government Thursday announced measures,
including the appointment of a retired senior official as its nominee on the
negotiating panel that is sitting with Enron India Pvt. Ltd., to resolve the
Dabhol power supply dispute.
Retired Telecom Secretary A.V. Gokak has been appointed as the government's
nominee on the negotiating panel - set up by the state government of
Maharashtra - that's made up of state and federal government officials and
officers of Maharashtra State Electricity Board, or MSEB.
The long-standing dispute is over power tariffs on electricity generated from
a plant of the Dabhol Power Co., the Indian unit of U.S.-based Enron Corp.
(ENE). The plant that will generate 1,444 megawatts of power when the second
phase is completed later this year is India's biggest foreign investment to
date at $3 billion.
In a further move Thursday, New Delhi has set up a committee of senior
officers from various ministries to examine any proposals that might emerge
from the negotiating panel.
The panel was set up after last month's delivery to Maharashtra government of
the Godbole Report, a 198-page document prepared by a five-member team headed
by former federal home secretary, Madhav Godbole.
A key recommendation of the report included the renegotiation of a power
purchase agreement between the Dabhol Power Co. and the MSEB.
The negotiating panel was due to meet Wednesday for a second round of talks
with senior executives of the DPC but was cancelled after Godbole resigned
over criticism levelled by leader of the National Congress Party Sharad Pawar
that implied the panel had negative attitudes. Godbole subsequently withdrew
his resignation.
A further meeting has been scheduled Tuesday.
Meanwhile, federal Minister of Power Suresh Prabhu confirmed Thursday that
the Indian government is ready to consider any worthwhile idea emerging from
the negotiating panel.
- By Steve Percy, Dow Jones Newswires, 91 22 2884211; steve.percy@dowjones.com

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

INDIA: New Delhi aims to help Enron patch up with utility.

05/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, May 24 (Reuters) - India's federal government will help Enron Corp
and Maharashtra state resolve their wrangle over the U.S. energy giant's
troubled $2.9-billion power project, an official statement said on Thursday.
Dabhol Power Co, 65 percent owned by Enron, and the Maharashtra State
Electricity Board (MSEB) have been embroiled in a dispute over payments for
six months.
The dispute provoked the Houston-based Enron Corp to issue a preliminary
notice last week to terminate its contract to sell power to the utility.
"The government of India will assist in the implementation of any agreed
proposals, which have the support of the concerned parties," the statement
said.
The federal government has nominated a representative in the state's panel
negotiating with Enron.
Another committee of senior officials has been set up in New Delhi to assess
the outcome of the negotiations, the statement said.
"The (junior) power minister, Suresh Prabhu, has confirmed that the
government of India is ready to consider any worthwhile idea emerging out of
the negotiating committee for the settlement of the dispute."
The statement said the federal government wanted the state to resolve the
dispute.
"The government of India is of the view that a quick settlement of the
dispute is essential for the power sector of Maharashtra."
The 2,184-MW power project was regarded as a test case of India's plans to
encourage private investment in the power sector.
The first phase of 740 MW of the project is up and running, while the second
phase of 1,444 MW is slated to be completed next month.

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

POLAND: ANALYSIS-Central European gas markets head for shake-up.
By Marta Karpinska

05/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

WARSAW, May 24 (Reuters) - Central Europe's gas market is heading for a
shake-up as Poland nears the go-ahead for a disputed transit pipeline and the
neighbouring Slovak and Czech republics launch key sector sell-offs, analysts
say.
The Polish government plans to examine an industry-backed proposal for a gas
link connecting Belarus and Slovakia-based transit systems which would carry
fresh Russian supplies to western Europe.
"The recommended route is not the worst possible, and I do not rule out that
the cabinet will approve it, although we may need some small adjustments,"
Economy Minister Janusz Steinhoff told reporters on Wednesday.
Russian Prime Minister Mikhail Kasyanov, who arrives later on Thursday in
Warsaw for a three-day visit, is due to meet Economy Ministry officials and
is expected to try to talk up the Russia-favoured pipeline project.
The decision - which could terminate an alternative plan by Russia's giant
Gazprom to lay a more pricey pipeline along the bed of the Baltic Sea - may
affect a key gas sell-off pending in neighbouring Slovakia, analysts said.
"Gazprom is very interested in the region, particularly in the Slovak transit
system, but its decision will partly depend on whether the new transit will
run across Poland," said Evgeny Solovyov, sector analyst at SG Securities in
London.
SLOVAK TRUMP CARD
Analysts say the sale of the Slovak SPP gas group, including a powerful and
highly lucrative gas transit system, is sure to attract heavy investor
interest and become the largest ever sale in the country.
"The national businesses in central Europe are all like individual pieces of
one puzzle, and Slovakia's SPP is the most important piece of that picture,"
said Bidzina Bejuashvili, oil and gas analyst at Raiffeisen Zentralbank in
London.
Last year SPP shipped almost 90 billion cubic metres (bcm) of Russian natural
gas to western Europe, making Slovakia the top cross-region gas transit
route.
The state wants to sell 49 percent of SPP - also a gas distribution and
transportation monopoly - all of which will likely go to a strategic
investor. A rough price tag put by analysts on the entire SPP varies from $2
billion to $8 billion.
So far, Gazprom and a consortium of Ruhrgas, Gaz de France PR and Italy's
Snam - a gas distribution arm of Eni - have expressed interest in acquiring
the stake.
Germany's RWE Gas and Wintershall have also said recently they would jointly
bid for the gas group.
The German consortium said it would bid too for SPP's neighbour, Czech gas
import monopoly Transgas, which the government wants to sell with eight gas
distributors, in a sale which attracted 14 preliminary bids earlier this
week.
"Czech and Slovak national markets are simply too small, and whoever pursues
the respective gas assets is likely to be looking for their transit pipelines
connecting Russian supplies and western consumers," said Bejuashvili.
POLISH LINK
Analysts say that Gazprom, Snam, Gaz de France, as well as Ruhrgas and
Wintershall - all involved in a consortium to build the Polish transit link -
will likely be the frontrunners in the regional gas asset acquisitions.
The consortium is now carrying out a feasibility study on a powerful transit
pipeline route running mostly along Poland's eastern border, but avoiding
most of its eastern national parks, due to link Belarussian and Slovak
pipelines.
Poland had initially opposed the transit project fearing the new volumes
would be complemented with Russian gas from the pipelines of its strategic
ally, Ukraine. But it has surrendered to pressure from both its commercial
partners and the European Union - which it is negotiating to join.
The government had hoped the new pipeline, likely to replace a previously
planned second stretch of the existing east-west Yamal pipeline running
across Poland, would be used to supply some Russian gas imports to its
industrial southwest.
The Yamal pipeline, which now has a capacity of 18 billion cubic metres (bcm)
per year, needs $350 million for three compressor stations to boost its
capacity to a planned 32 bcm.
POLISH POTENTIAL
Analysts said that Poland's 39-million-consumer market and relatively low gas
usage - only 8.5 percent of total primary fuel consumption - make the
domestic gas market growth potential much higher than that of its neighbours.
"It is quite reasonable to assume that Polish gas consumption will grow at a
faster pace than its economic growth in coming years," said Solovyov.
Poland's gas monopoly PGNiG expects last year's consumption of 10.9 bcm to
grow by five percent per year over the next three years to reach almost 13
bcm by 2003.
The government's long-range forecast - which a lot of analysts say is too
high - sees annual gas consumption up to 18.4 billion cubic metres by 2010.
In a highly disputed plan the Polish government wants to sign a long-term
agreement with Norway later this year which would enable it to diversify from
its currently mainly Russian gas supplies, and boost import volumes by 5 bcm
as of 2007.
"There is absolutely no guarantee the consumption will grow as expected, and
signing a new long-term contract may result in PGNiG being highly
overcontracted," the head of Enron Polska, Jaroslaw Astramowicz, told a
recent industry seminar in Warsaw.
Poland already has a 25-year deal with Russia under which it must buy up to
14 bcm annually, and analysts warn that a new long-term deal may seriously
dent the financial standing of Polish gas distribution firms ahead of their
planned sell-off.
Poland does not plan to start selling its four gas distributors until next
year, but analysts say that September general elections, strongly tipped to
be won by the opposition social democrats, may delay those plans further.

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

India: A 'hurt' Godbole quits, persuaded to stay on

05/24/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 23. DR MADHAV Godbole, Chairman of the Enron renegotiation panel,
resigned this morning but the Maharashtra Government persuaded him to stay
back and continue the renegotiation process with Enron. Dr Godbole withdrew
his resignation in the evening. The second meeting of the panel which was
scheduled for today with Enron representatives did not take place because of
the Chairman's resignation.
When contacted, Dr Godbole said: "I am withdrawing my resignation in the
light of the Chief Minister's letter to me in which the Cabinet has
unanimously asked me to take back my resignation. They have placed complete
faith in me and the committee. The Cabinet has asked me to carry on with the
complex and onerous task of negotiating with Dabhol Power Company."
Dr Godbole also said he had received calls from different political parties
and various other organisations asking him to reconsider the decision to
quit. He considered it a vote of their confidence in the committee and its
working.
Dr Godbole had quit in reaction to "derogatory remarks" made by the
Nationalist Congress Party (NCP) leader, Mr Sharad Pawar.
Last night, Mr Pawar had reportedly made a statement saying he was
"apprehensive of the outcome of discussions with Enron as those leading the
talks from the Government's side are working with a negative approach".
Dr Godbole submitted his resignation to the Chief Minister saying he was
"hurt" by Mr Pawar's statement. The NCP is one of the leading partners in
Maharashtra's Government.
"We will try and clear this misunderstanding. He (Godbole) has been appointed
by the State Government. And the Government has no doubt about the
committee's working. We want him to continue on the panel," Mr Chhagan
Bhujbal, Deputy Chief Minister and NCP leader, said.
- Our Bureau

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

INDIAN GOVT TO ACCEPT PROPOSALS TO SETTLE POWER DISPUTE

05/24/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, May 24 Asia Pulse - The federal government will accept
recommendations of the renegotiating committee headed by the Madhav Godbole
for the settlement of the dispute between Dabhol Power Company (DPC) and the
Maharashtra State Electricity Board (MSEB).
A government statement quoted Power Minister Suresh Prabhu as saying, "The
Government of India is ready to consider any worthwile idea emerging out of
the renegotiating committee for the settlement of the dispute."
The proposal, Prabhu said, has to be acceptable to the parties to the dispute
- MSEB and Enron-promoted DPC - adding that a quick settlement of the
differences was essential for the power sector of Maharashtra.
DPC had last week slapped a preliminary termination notice (PTN) on MSEB
following the dispute over payment of power bills.
While former telecom secretary, A V Gokak, has been appointed as the federal
government's nominee on the Godbole Committee constituted by the Maharashtra
Government, a committee of senior officers of the concerned ministries has
been set up to quickly examine the proposals emerging out of the negotiating
committee, the statement said.
The committee officers comprise officials of Ministries of Finance, Power and
Petroleum.
(PTI) 24-05 2000

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

Endesa to sell coal-powered plants operated by Electra de Viesgo (Endesa
incluye una mayoria de centrales de carbon en Viesgo antes de venderla)

05/24/2001
Expansion
Copyright(C) 2001 Abstracted from Expansion in Spanish, Source: World
Reporter (TM)

Endesa, the Spanish electricity company, has decided which assets to sell and
it will auction its Electra de Viesgo subsidiary, which has 560,000 clients
in the Cantabria region. This company has 2,610MW of generation assets and 36
per cent of its plants are coal powered. Electra de Viesgo is estimated to be
worth over 2bn euros (Pta332bn). Endesa is carrying out the sale in order to
raise funds which will finance operations in other European countries and it
has invited European and US energy companies to the auction. These include
Hidrocantabrico, of Spain; Eon and RWE, of Germany, and Enron and AES, of the
US. The winner will gain 3 per cent of the Spanish electricity distribution
market and 5 per cent of the generation market.
Hidrocantabrico is regarded as the favourite to acquire Electra de Viesgo.
Its market, Cantabria, borders Asturias and the cost of integrating the two
companies will enable it to make a higher offer than its rivals. However,
Hidrocantabrico's complicated shareholder situation (EDP, EnBW, CajAstur and
Ferroatlantica have to agree on the company's management), may be a
hindrance. In order to carry out the sale, Endesa will transfer a series of
power plants located throughout Spain to its subsidiary. These plants will
represent a quarter of the generation assets to be sold by Endesa. The
decision to sell follows Endesa's failed merger attempt with Iberdrola and
will enable the company to invest without increasing its debts. According to
market sources, Endesa may resume plans to merge with Iberdrola following the
sale.

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

Is Pawar playing power politics with Enron?
Girish Kuber

05/24/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

MAHARASHTRA'S former chief minister Sharad Pawar's statement criticising
Madhav Godbole, the head of the renegotiation team, and the timing chosen by
him to air his views, has focused attention on his role in the Enron
controversy.
Pawar, who had first inked the Enron deal as the chief minister of
Maharashtra in 1992, was at the center of controversy when the Opposition
accused him of "favouring" the US energy giant.
The issue of Rs 64 crore being spent by Enron on "educating" Indians had
become a political issue in the 1995 state Assembly elections which Pawar
lost.
In more recent times, Pawar has repeatedly intervened at crucial junctures.
On the eve of Wednesday's session of the Godbole panel, Pawar criticised
Godbole of having " a negative attitude" about Enron. Though Pawar did not
name Godbole, the message was loud and clear.
His statement comes at a time when the Maharashtra State Electricity is
planning to issue a pre termination notice to Enron after the Godbole panel's
scheduled meet on Wednesday.
The board officials had discussed the issue with the state's advocate-general
and were believed to have received a go-ahead from chief minister Vilasrao
Deshmukh.
Last October, when the state government had decided not to pay Enron's bills,
Pawar convinced the state government to release Enron payments. It was after
his intervention that the state government decided to appoint a committee to
review the project.
Surprisingly, last month, when Deshmukh had a meeting with Yashwant Sinha and
Suresh Prabhu at Delhi, Pawar was seen accompanying the chief minister though
his name did not figure on the official list of invitees.
However, subsequently, the committee could not be formed since the faction
loyal to Pawar in the state government was clearly against Godbole's
appointment.
State energy minister and Pawar's trusted aide, Padmasinh Patil, had publicly
expressed his ire against Godbole. It was only after the Janata Dal, Peasents
and Workers Party, CPI (M) and other anti-Enron groups threatened to withdraw
support of the government, the Godbole Committee came into being. But not
bofore a month was lost in a wrangling. Even after the committee's formation,
Patil continued his tirade against Godbole.
It was only chief minister Deshmukh's support that the Godbole Committee
could survive the opposition from within. Political observers believe that it
was the Congress' strategy to support the Godbole Committee that at the end
could expose the wrongdoings of the earlier governments.
As expected, the Godbole Committee, in its first report, exposed what it
called the "lack of governance at every stage" in finalising the Enron deal.
Godbole even suggested a judicial probe to pin those guilty for this "faulty
deal".
It was against this backdrop that Pawar's views on Godbole created a flutter
on Wednesday. Although Godbole withdrew his resignation, it has certainly
widened the rift between the NCP and Congress.

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

Godbole does a Mamata; quits, then back
Our Bureau

05/24/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

IT'S not a comparison that springs naturally to mind. But Madhav Godbole, the
former home secretary in charge of renegotiations with Enron, on Wednesday
managed a passable imitation of Mamata Banerjee by resigning in the morning
and withdrawing his resignation later in the day.
In a day marked by considerable drama that briefly threatened the
renegotiation process with Enron, Godbole decided not to press for his
resignation after chief minister Vilasrao Deshmukh personally expressed "full
faith and confidence" in his ability to "handle the complex and onerous task
of renegotiation".
Earlier in the day, Godbole, who took offence to former chief minister Sharad
Pawar's "derogatory" remarks, decided to walk out of the panel.
Pawar had last on Tuesday night said he was doubtful about the outcome of the
ongoing renegotiations between the state and DPC as those heading the state
government's panel did have a positive approach to resolve the issue.
Godbole's swift decision to quit the panel sent shock waves at the Mantralaya
-- headquarters of the state government -- as it seemed to threaten the
existence of the government.
The Janata Dal, Peasants and Workers Party and other splinter groups went to
the extent of saying they would pull out of the nine-party coalition if
Godbole's resignation was accepted.
Following these development, the state government had to cancel the crucial
second round of renegotiations with DPC slated for Wednesday. Enron and the
Centre's representative were to attend the meet.
"I have resigned due to the derogatory remarks made against me by Sharad
Pawar last night," Godbole said on Wednesday morning.
Godbole said instead of strengthening the negotiator's hands, such statements
"loosen the concerned authority's grip over the fragile situation".
However, chief minister Vilasrao Deshumukh appealed to him to reconsider his
decision. "Godbole's in-depth knowledge and experience makes him
indispensable for handling vexed issues such as renegotiation with the US
energy giant," Deshmukh said.
Deshmukh, after the Cabinet meet, sent a letter to Godbole expressing full
confidence in him. "Godbole should not respond to statements from those
outside the government," said Deshmukh.
Meanwhile, Pawar, too, tried to control the damage. "It was my personal
opinion that was not aimed at any particular person. Godbole should not have
resigned. He should complete his task."
Interestingly, Chagan Bhujbal, the state's deputy chief minister, was put on
a re-fighting mission and asked to express faith in Godbole on behalf of the
NCP, led by Pawar.
Later in the evening Godbole decided not to press for the resignation. "I
have received a letter from the chief minister expressing full confidence in
my abilities. It also states the views expressed by Sharad Pawar were his
personal views. He has said the state government had appointed me and they
had no complaints against me. I, therefore, see no reason to press for my
resignation," Godbole said.
Meanwhile, the next meeting of the renegotiating panel has been convened on
May 29.

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

		COMPANIES & FINANCE THE AMERICAS: Dynegy on the lookout for deals
Financial Times; May 24, 2001
By JULIE EARLE

		Dynegy, the US gas and electricity supplier, has told analysts it will make
large imminent acquisitions or mergers in the US and overseas.
		The company told analysts at a conference in Texas on Tuesday that it was
keen to make mergers and acquisitions in the near future.
		The deals could include generation assets, gas pipeline and storage
infrastructure, entire utilities and communication assets. Dynegy's customers
are in North America, the UK and elsewhere in Europe.
		Dynegy, which is Houston-based, was tight-lipped yesterday about any possible
deals, saying only that it was "always looking for opportunities to enhance
shareholder value".
		The company told analysts it had an active oil, liquids, gas and power group
fully integrated with its US operations, and was "poised to exploit
opportunities".
		It said it would like to own more European assets, but added that prices
remained high, despite an oversupplied market.
		Jay Yannello, an analyst for UBS Warburg in New York, said Dynegy could
leverage aggressively any assets within its network infrastructure.
		"We would not rule out substantial transactions," he said.
		Dynegy told analysts it was looking for 10 per cent of the US power market
and an ongoing 15 per cent share of the US gas market.
		Dynegy and its competitors, including Enron and El Paso, have been recording
big profits in the past two quarters, and and have come under fire from
regulators over the California power crisis.
		Copyright: The Financial Times Limited


Following are the responses I received to the question:  Please ask your schedulers to e-mail me which pipelines still maintain the ability to do Nominations via a dial up connection to their EBB (modem and a phone line).
Please ask them to call their representatives if unsure.

Pipelines that require or can use dial up for EBB access
from responses to an e-mail mailed out to all managers in Houston, Denver and Calgary

Cora	Nigas
	Michcon
	Peoples
Tammy Gilmore	Reliant Field Services
	Accunom
Michael Olsen	EPGT
	Oasis
	Lonestar
Patti Sullivan	PG&E
Robert Ramirez	CGULF

Richard Pinion
713-853-7339


never mind.  I actually bothered to read the ENTIRE note and answered by own
question.  Apologies.

Best,
Jeff


I have reserved conference room 32C2 for Thursday, Feb 1, Feb 8, and Feb 15
from 3:30 - 5:30
John to teleconference in tomorrow (Feb 1) call 713-853-9554

Please let me know if Wharton is using a different number from last week so
that I can inform the scheduling people

Melinda
x31641

	Christie Patrick@ECT
	01/30/2001 06:34 PM

		 To: Melinda McCarty/Corp/Enron@Enron
		 cc: jhenders@newpower@EES, Vince J Kaminski/HOU/ECT@ECT,
degiacic@wharton.upenn.edu
		 Subject: Re: Wharton Tiger team #3

Melinda,

Would you please coordinate John Henderson into the Thursday videoconference?
Thanks!

--Christie.
---------------------- Forwarded by Christie Patrick/HOU/ECT on 01/30/2001
06:31 PM ---------------------------

Mohn Henderson@NEWPOWER

01/30/2001 04:13 PM

Sent by: Melissa Corley@NEWPOWER
To: Christie Patrick/HOU/ECT@ECT@EES
cc: jhenders@newpower@EES, Vince J Kaminski/HOU/ECT@ECT, Melinda
McCarty/Corp/Enron@Enron, degiacic@wharton.upenn.edu
Subject: Re: Wharton Tiger team #3

John would prefer to join the Thursday call via teleconference.  If you could
provide the dial in number he will call in.

Thanks,

Melissa Corley

John Henderson

	Christie Patrick@ECT
	01/30/2001 03:50 PM

		 To: jhenders@newpower@EES, Vince J Kaminski/HOU/ECT@ECT
		 cc: Melinda McCarty/Corp/Enron@Enron, degiacic@wharton.upenn.edu
		 Subject: Wharton Tiger team #3

Hi John and Vince!

John, hopefully you received my voice mail regarding the matter set forth
below.

I'm in NY now and won't  return until Thursday morning.  Perhaps it would be
easiest for John to come to the video conference on Thursday (if he's in
Houston) or via telephone if he's travelling??

Whatever  you both think is best..please let me know!

My assistant, Melinda McCarty, is setting up the call location at the Enron
Building, as well as the dial-in number with Donna Piazze at Wharton.

Melinda, please include John in the distribution of the video conference
location.

Thanks!

---------------------- Forwarded by Christie Patrick/HOU/ECT on 01/30/2001
03:43 PM ---------------------------

"DeGiacinto, Clayton" <degiacic@wharton.upenn.edu> on 01/30/2001 02:00:07 PM
To: "'Christie.Patrick@enron.com'" <Christie.Patrick@enron.com>
cc: "Feerick, Dennis" <dennisf@wharton.upenn.edu>, "Lessar, Stephen"
<lessars@wharton.upenn.edu>, "Vittal, Maheshram" <mvittal@wharton.upenn.edu>,
"Bassal, Omar" <bassalo@wharton.upenn.edu>, "Cummins, Marc"
<marcjc@wharton.upenn.edu>
Subject: Wharton Tiger team #3

Christie,

As we talked last Thursday via video teleconference, we are planning to
narrow our scope to focus on a marketing/promotion plan for NewPower
including value-added products and services for the future.  Before we talk
again on Thursday, we would like to speak with John Henderson again to see if
he recommends any specific items he would like us to address.

We are having trouble contacting him and wonder if you could facilitate a
phone meeting between us, or if it would be best to include him in our next
video teleconference.  We are available the next two days at 1pm and 4pm
Houston time.

We understand that John is a very busy person, and we appreciate any help you
can give in getting us together to ensure our work is commensurate with his
expectations.

Thanks,

Enron Team 3 (Retail)


i did a deal with someone on my desk so there is no brokerage involved.


Lets do it on Friday

DG


Just a heads up from a Business Coalition for Clean Air (BCCA) meeting we had
on Monday to try to raise the proposed $1.6 million for 2001 activities.
(You will hear all about the business plan today.)

The suggested amount for you/Enron is $200,000--12.5% of the total.  Enron
gave $50,000 for the 2000 effort, which was about 8% of the total they ended
up raising ($617,000).   it is your call on what is reasonable, and keep in
mind there might be another round later on.

We have been working on a list of potential donors with "A" being the
impacted such as refiners and petrochemical companies and "B" being
beneficiaries such as contractors.  Ned Holmes office suggested that you pick
the names of the potential donors for the Enron visit and he will just take
the rest.  The list is being updated, so we will have to wait until the
meeting to look at it.

- Rob


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To be removed, click below, and send:
mailto:autoremove@yes1.asapmailinfo.com?subject=autoremove


I like this slide from Tara. Can we use somewhere? Rick
---------------------- Forwarded by Rick Buy/HOU/ECT on 01/23/2001 04:43 PM
---------------------------

Tara Turk <Tara.Turk@owen2002.vanderbilt.edu> on 01/22/2001 12:34:30 PM
To: "'rick.buy@enron.com'" <rick.buy@enron.com>
cc:
Subject: FW: What could possibly go wrong?

Rick,

Here is a "risk management" slide that I think you will find entertaining.
- I know this is silly, but it is perfect too. (Maybe you can use it in one
of your presentations.) - Enjoy!

Tara

 - risk.pps


The following meeting announcement may be of interest to members of ACG members.  If you would like to attend, please reply to Dottie Kerr as soon as possible.
Stuart Tillman, president
ACG Houston Chapter

Who is going to be the next mayor of Houston?
How does local government contribute to the fostering and enhancement of key factors that contribute to Houston's economic vitality and quality of life? Who's the right person to lead and direct the government for the next two years?  Houston residents will be pondering these and other related issues when they vote this November for the next mayor.
Join the HBS Club on October 8th as the mayoral candidates share their views on the future of Houston.  Houston is facing major issues and each candidate will present his thoughts on what needs to be done to continue Houston's growth as a premier city.  Following a fifteen-minute presentation by each candidate there will be a short question and answer period.
SPEAKER:    Mayor Lee Brown, Council Members Chris Bell and Orlando Sanchez
DATE:           Monday, October 8, 2001
TIME:            11:30 am Check in, 11:50 am Lunch, 12:10 pm Presentation
PLACE:         Houston Club, 811 Rusk in downtown Houston
COST:           $30 (No shows will be charged.)
RSVP:           RESERVATIONS REQUIRED By 5:00 pm on October 4, 2001
                     email dottie@kerr-solutions.com, phone (281) 424-3084,
                     fax (281) 424-4770 or at www.hbshouston.org .
                     Credit card required to guarantee reservation.
Mayor Lee P. Brown (Attendance is Pending) was first elected to office in 1997 and became the city's first African-American Mayor.  He is currently serving a second term as Mayor of Houston.  He earned a masters and doctorate in criminology from the University of California at Berkley and a bachelors in criminology from Fresno State University.  He also earned a masters in Sociology from San Jose State.  Mayor Brown has been appointed to several high profile positions in law enforcement and public safety which include the following: Public Safety Commissioner of Atlanta (1978-1982), Houston Police Chief (1982-1990), New York Police Commissioner (1990-1992) and Nation's Drug Czar under President Clinton (1993-1996).  Throughout his career, Mayor Brown has also served as a professor at several universities: Texas Southern University, Rice University, Portland State University and Howard University.  In the coming election, Mayor Brown will be seeking a third and final term as Mayor.
Council Member Chris Bell was first elected to city council in 1997. He is currently serving a second term on city council.  Council Member Bell is an attorney with Beirne, Maynard, and Parsons.  He is a graduate of the University of Texas and South Texas College of Law.  Prior to his career in law, he worked as a reporter for KTRH Radio and was awarded Best Radio Reporter by the Texas Associated Press in 1991. Chris is also a very active member of the community. He serves on the boards of the Houston Chapter of the American Diabetes Association and Big Brothers/Big Sisters.  Chris serves as an Advisory Board Member for the Houston Parkinson Society, an organization for which he holds his annual "Birthday for a Cure" fund-raiser to honor his late mother and raise money for Parkinson research.
Council Member Orlando Sanchez was first elected to city council in 1995. He is currently serving his third and final term on city council.  He earned a bachelors in political science from the University of Houston.  Councilman Sanchez has served as president of the Westwood Civic Association, managing director of Nexo Latino, a Hispanic marketing and communications company, and is a veteran of the U.S. Air Force and the Texas National Guard.  In the coming election, Councilman Sanchez will be attempting to become the first Hispanic-American Mayor of Houston.
****************************************************************************************************
Reservation - Monday, October 8, 2001 Luncheon (Houston Mayoral Candidate Panel)
Name:
Guest Name:
Cost:  $30 (No shows will be charged.)
Payment Method (Check one)
1. _____     Credit card on file
2. _____     Credit Card (Visa, MC) Number: ________________ Exp Date:  ______
3. _____     Cash or Check enclosed
RESERVATIONS REQUIRED.  Reservations accepted until 5:00 pm on October 4,
2001.  Fax this form to (281) 424-4770, e-mail dottie@kerr-solutions.com, or call (281) 424-3084.
***************
Dottie Kerr (dottie@kerr-solutions.com)
Administrator for Harvard Business School Club of Houstonhttp://www.hbshouston.org/


- 2.jpg
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Here is my PR plan, with a few more additions from yesterday.  The team has
agreed that I can hire Fleishman Hillard in Miami immediately.  We use them
quite a bit and they have a Latin America practice.  So right now they can
help me from that office, which will ensure confidentiality.  If we deem
appropriate or necessary, when we get closer to the date they can bring in
teams from some of the countries where we need assistance.


Following please find the Daily EnronOnline Executive Summary.

Special Announcement! This report can now be accessed directly through the
EnronOnline Intranet Site at http://eolinfo.enron.com.

In order to access this report,  click on the link above. Once there, follow
the link entitled "Reports" and then select the "Secured Reports" tab. A
dropdown menu will appear with a list of the various secured reports
available for viewing. After choosing the report you are interested in, a
security window will appear requiring you to enter your Windows login ID and
password. Simply enter your standard login and the report will load
automatically.

We look forward to your feedback and comments. If you have any questions or
experience any difficulties accessing your reports through the Intranet Site,
please feel free to contact either Bryan Deluca at x36161 or Simone La Rose
at x31670.


check out this website... you can also listen to the radio advertisement
that's been running in CA.
---------------------- Forwarded by Karen Denne/Corp/Enron on 03/26/2001
03:04 PM ---------------------------

"sandra" <SYamane@marathon-com.com> on 03/26/2001 02:00:45 PM
To: <karen.denne@enron.com>
cc:

Subject: republican ad

Karen:
I think I located the republican ad re: energy crisis and Gray Davis.  It is
at: www.saveourpower.com under "Hear the ad"  I was unable to open the audio
file.  I hope you can.


Just wanted to keep you all posted on the latest and greatest.....

Launch dates:
Bandwidth May 1  US PCG
Brazil (power) July 1  US PCG
Japan  May 17  US PCG
Austria  April 26  UK PCG
Australian Coal Q2/Q3  US PCG
Singapore May 8  UK PCG
China  TBD  ???
Argentina  July 1  US PCG

Auctions (no dates yet, and not a lot of detail...):
Pipeline capacity
Reliable power
Coal
Pipeline imbalances
Plastics
Australian transmittal capacity
Generation Capacity

And...a few other things in the works:
Physical plastics (a possible Enron joint venture)
Credit derivatives - possible stand alone site
Confirms generated through EOL
Remote access (e.g. Palm Pilot)
Spreads
Options
Spreadsheet interfaces
Pipeline applications (other non-Enron pipes posting capacity on website)
Autohedge

SO.....looks like things are not going to slow down anytime soon (in case you
were thinking that they were!!!!)

Let me know if you have any questions!

Sheri


Dear Valued Customer,

We have launched an exciting new redesign of our website just in time for
Father's Day.  Visit Brookstone.com today (http://www.brookstone.com/) and
check out our new look and navigation.

Father's Day is June 17th and our new site has many clever, unique and fun
ways to celebrate dad!

Don't wait until the last minute!
Order by Noon (CST) on Friday, June 8 for Standard Ground Shipping (5-7 days).
Order by Noon (CST) on Wednesday, June 13 for Express Delivery (2-3 days).
Order by Noon (CST) on Thursday, June 14 for Overnight Delivery (next day).

Here are some of our best gift ideas:

Thin Profile CD System
http://www.brookstone.com/promo/fathersday.asp
Great for the home or office - this space-saving AM/FM CD system is picture
frame thin, so it can be mounted on a wall or displayed on its raised stand.

Chef's Fork Plus with Thermometer
http://www.brookstone.com/promo/fathersday.asp
This unique fork has a built-in thermometer that reads the cooking
temperature of the meat to tell you when it's cooked to your desired taste,
from rare to well done.

102-Piece Tool Chest
http://www.brookstone.com/promo/fathersday.asp
Nothing beats our 102-piece tool set for home and auto repairs! Simply the
best organized, most complete set you'll find.

Sincerely,
The Brookstone.com Customer Service Team

If you do not wish to receive future e-mails send a message with
"unsubscribe" in the subject line to customerservice@brookstone.com.
Please be aware the removal process may take 2-3 days to complete.

Copyright 2001 Brookstone Company, Inc. All Rights Reserved.
Brookstone.com disclaims liability for editorial or typographical errors in
this e-mail.


The following reports have been waiting for your approval for more than 4 days.  Please review.

Owner: Jennifer J Fraser
Report Name: JF091301
Days In Mgr. Queue: 9

Owner: John L Nowlan Jr
Report Name: October 17, 2001
Days In Mgr. Queue: 11


FYI.  We have this report?


FYI.  Just so you know what we're saying in California.

The attached draft answers the California Municipal Utilities Association
complaint that California markets are not workably competitive and therefore
FERC should establish cost-based rates.  In its complaint, CMUA argued that
the market isn't workably competitive because the prices were higher this
summer than in previous years even in hours where demand was no higher.
Seabron's paper shows that high prices have resulted from a number of
unrelated structural and market design factors and increasing attempts at
regulatory intervention.  He also debunks the assertions that cost-based
rates will fix the problem in California and will be easily administered by
FERC.  Our answer is due at FERC tomorrow so please get me your comments ASAP.
---------------------- Forwarded by Mary Hain/HOU/ECT on 10/25/2000 10:19 AM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Sabine Schnittger" <Sabine.Schnittger@frontier-economics.com>
                  10/25/2000 08:23 AM

To: "Mary C Hain" <mary.hain@enron.com>
cc:
Subject: Draft response to CMUA paper

Mary:

Please find attached a first draft of Enron's response to the CMUA, please
let us know your comments.

Seabron can be contacted on his cell-phone (617 513 5904) this morning, but
will be in the office at noon. Alternatively, you could pass on comments to
me.

Are you or is one of our staff able to assist us with a reference to the
claim that hydro water levels were low in California this year?

Best wishes,

Sabine.

------------------------------------------------------
This e-mail, and any attachments thereto, is intended only for use by the
addressee(s) named herein and may contain legally privileged and/or
confidential information.  If you are not the intended recipient of this
e-mail, you are hereby notified that any dissemination, distribution or
copying of this e-mail, and any attachments thereto, is strictly prohibited.
If you have received this e-mail in error, please immediately notify me at
(617) 354-0060 and permanently delete the original and any copy of any
e-mail and any printout thereof.

Sabine Schnittger
Managing Consultant
Frontier Economics
Two Brattle Square
Cambridge, MA 02138
Office tel:    (617) 354-0060
Office fax:   (617) 354-0640
Mobile:        (617) 480-5992
Email:   sabine.schnittger@frontier-economics.com
http://www.frontier-economics.com

 - 00-10-26-SA-SS draft.doc


Jean,

This does not look cool.  Who should I report this to?  How did these people get my email address?

Thanks, Kim.

-----Original Message-----
From: benneth micheal [mailto:srcbenneth2001@yahoo.com]
Sent: Monday, August 13, 2001 4:07 AM
To: hicrex@yahoo.com
Subject: URGENT

ATTN:THE DIRECTOR / CEO

Dear Sir,

RE URGENT BUSINESS PROPOSAL

It is humble pleasure to write you this letter
irrespective of the fact that you don't know me.
neither have we seen before. However, I got your
contact through a trade somnal in my earest, search
for a reliable and trust worthy individual that can
handle this confidential business.

I am Dr. Benneth C. Micheal, the manager of United
bank for Africaplc (U.B.A)Agege/Ijaye-Ogba Branch,
Lagos-Nigeria. I am writng in respect of a foreign
customer in my branch, who was working with one of the
government parastatal as a contractor, he was the
owner of the No 0140351577400
ID No470089 swift code No:23TUBA, he has in this
account in my branch the sum of US$ 65 Million
(sixty five millionU.S Dollars) before he died in a
plane crash {ETHIOPIAN AIRLINE 961) four years ago
with the hole passengers aboard perished.

Since, the demise of this on customer, i have been
wateling with keen interest to see the next of kin but
all has proved abortive, for no one has ever come to
claim his fund. Having noticed this, immediatly i
covered up the account, now want you (being a
foreigner) to be fronted as one of his next kin and
forward your account and other relevant document to be
advised to you by the bank to attest to the claim, as
the banking ethies here does not allow such money to
stay more than four years after which the money will
be recalled to the bank treasury asd unclaimed nafter
this year 1/3 quater auditing.

So, I decided to contact you to seek for your help and
assistance to use your name as the next of kin to the
deceased. I am wiling to give to you a hole total of
40% of the total sum, upon the reciept of your
personal response, I will than send to you via fax or
email to you the application, which you will fill and
send back to the bank applying as the next of kin, for
the immediate realasing of the fund to you. Along with
the bank fax No and the next step to take.
I will not fail to bring to your notice that this
business is hitch free and that you should not
entertain any fear as all modalites for the realise of
this fund wil be finalized with in ten working days to
get the fund retrieved successfully from the day you
apply to the bank as a reletion to the deceased.

Please you are required to corresponde only via e-mail
till the end of this transaction for the security and
confidenciality reasons of this business please. Also
signify your decission including your e-mail address.

Respectfully submitted,

Dr. Benneth C. Michael.
(Gen. Manager UBA PLC).

__________________________________________________
Do You Yahoo!?
Send instant messages & get email alerts with Yahoo! Messenger.
http://im.yahoo.com/


John and Jeff,

Good Morning!  Sorry for the lengthy email- but I urge you to take the time
to read all of the attachments in preparation for the NY media demo briefings
next week. We have an amazing line-up of journalists for both of you!

An overview of the attached documents for quick reference:
Jeff's schedule: April 3- trades
John's schedule: in April 4- mainstream
Demo outline- details the order of information to go over in the site demo
Jeff's journalist briefing book
John's journalist briefing book
Enron Credit Fact Sheet & Backgrounder (will be included in press packets)

The day of your briefings will be long and exhausting, but well worth your
time and effort. Your first briefings begin at 9 AM.  Please plan on meeting
me at Middleberg at 8 AM to go over any last minute changes or updates.

The document containing the actual site profiles and accounts set up for each
of your journalists will be emailed to you on Monday.

You should each receive a hard copy of your briefing packet on Friday (March
30).  This will give you background on each journalist, including recently
written stories.

Kimberly and I will both be in New York beginning Monday. Should you need to
contact either of us, please call our mobile numbers:
Meredith:   713-806-0074
Kimberly: 713-858-8389

Reminder: The briefings will take place at Middleberg's office within walking
distance from your hotel: 102 Madison Avenue, 12th Floor (BW 29th and 30th
street)
The attachments- - -

JEFF:

JOHN:

BOTH:

See you in the big apple. Thanks!
Meredith


Tana:

I need to send a copy of the metals CP list to my documentation department
for their assistance.  I'm sending them a hard copy, but I'd appreciate if
you could forward an electronic copy to Melissa Murphy.

Thanks

Leslie


Just a reminder that I will not be in the office on Friday, September 29.
Mary Cook (ext. 57732) will be able to handle any crises.  I'll be back in
the office on Monday.  Sara


Are you the same Jeff Shankman that went to GUCI?  Let me know.  Jennifer

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Jeff,
Attached is the New Revised spreadsheet of Tenaska transactions which they want to assign to ECC.  Please note that the top two deals on the spreadsheet are booked as ENA to Tenaska Marketing Ventures....Tenaska wants those trades to be between ECC and Tenaska Marketing Canda as well.

This new spreadsheet (attached at the bottom on the right) shows our Deal Info. as well Tenaskas Deal info.  Mark Soulliere at Tenaska would like to have this ASAP...He would like to have the executed copy fax to his attention at (402) 758-6142.  Please call with any questions.

Kim Theriot
x. 31771

-----Original Message-----
From: Rohauer, Tanya
Sent: Monday, November 12, 2001 8:01 AM
To: Theriot, Kim S.; Hodge, Jeffrey T.
Cc: Otto, Randy; Williams, Jason R (Credit)
Subject: FW: Assignment Documents

Please see the attached assignment.  Kim, can someone on your staff/Peggy's staff please identify/confirm these ECC deals? I do not see a problem assigining the ENA deals to ECC as they are current month deals that will allow netting of the purchases and sales.  Should not affect the PMTM which has a threshold in the contract.  Would like to try to finish up quickly. Please advise if anything CRM can do to help.

Thanks,
Tanya

-----Original Message-----
From: Chris Van Scyoc [mailto:cvanscyoc@tmvgas.com]
Sent: Friday, November 09, 2001 5:29 PM
To: Rohauer, Tanya
Cc: Mark Soulliere
Subject: Assignment Documents

Tanya,

Per your conversations with Mark Soulliere, we have drafted and attach for your execution an Assignment of outstanding physical transactions between Tenaska Marketing Canada and Enron North America Corp. to Enron Canada Corp.  Please get back to me with any questions or comments you or your legal department may have on Monday or Tuesday of next week.

Chris Van Scyoc
Supervisor, Contract Administration
Phone:  (402) 758-6135
Fax:       (402) 758-6250


Attached, in Word format, are the closing documents for the Hawaii II
transaction. Each of the documents has been marked to show changes from
the prior version, with the following exceptions: (i) the Series
Certificate and Omnibus Amendment for McGarret A are clean and (ii) the
Series Certificates and the Omnibus Amendments for McGarret C and D are
marked against the comparable McGarret A documents.

The documents are identified as follows:

Closing Checklist (266026)

Second Amended and Restated Trust Agmt (265272)

Beneficial Interest Certificate (265276)

Distribution Agreement (265277)

Subscription Agmt (265278)

Ex. H to Facility Agmt (Transfer and Auction Agmt) (266163)

Ex. I, Part A to Facility Agmt (Asset LLC Agmt) (266143)

Ex. I, Part B to Facility Agmt (Transferor LLC Agmt) (266137)

Omnibus Amendment (McGarret A) (266755)

Omnibus Amendment (McGarret C) (266950)

Omnibus Amendment (McGarret D) (267037)

Letter Agmt re: Equity Commitment (267979)

Replacement Series Certificate (McGarret A) 268572)

Replacement Series Certificate (McGarret B) (268675)

Replacement Series Certificate (McGarret D) (268676)

 - 265272.doc
 - 265276.doc
 - 265277.doc
 - 265278.doc
 - 266026.doc
 - 266137.doc
 - 266143.doc
 - 266163.doc
 - 266755.doc
 - 266950.doc
 - 267037.doc
 - 267979.doc
 - 268572.doc
 - 268675.doc
 - 268676.doc