As Final Exams Begin, Power Is a Big Question
The New York Times, 05/13/01

British Telecom
The Times of London, 05/12/01

Houston needs to think small about future technology
Houston Chronicle, 05/13/01

Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
Houston Chronicle, 05/13/01

MSEB not to pick up 15 pc in DPC after phase II completion
Press Trust of India Limited, 05/13/01

Enron plans to pull out of Gulf gas project: MEED
Agence France-Presse, 05/13/01

SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
Houston Chronicle, 05/13/01

More power to reform agenda
The Economic Times, 05/13/01

India Power Min: New Power Deal With Enron Unit Possible
Dow Jones International News, 05/12/01

India: Talks begin on Dabhol issue
Business Line (The Hindu), 05/12/01

India to allow 3rd party sale if DPC, MSEB jointly approach
Press Trust of India Limited, 05/12/01

DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
Portland Oregonian, 05/12/01

Congressman suggests state buy PGE
Associated Press Newswires, 05/11/01

National Desk; Section 1
As Final Exams Begin, Power Is a Big Question
By JODI WILGOREN

05/13/2001
The New York Times
Page 16, Column 4
c. 2001 New York Times Company

For final exams, prepared students pack extra pens, calculators, bottled
water, granola bars. And, at the University of California's Berkeley campus
this year, a flashlight.
As state officials and utilities struggle to maintain the power supply during
California's continuing energy shortage, administrators and professors at the
31,000-student campus are planning for the possibility that rolling blackouts
may disrupt exams, which began on Friday and run through next Saturday.
''People here are used to interruptions,'' Sara Abbas, 21, a senior
communications major, said with a shrug as she studied in a cafe near campus.
''People walking in, people running around buck naked and whatnot. People
have cut the power lines. They just reschedule.''
In an e-mail message sent Wednesday, the executive vice chancellor, Paul R.
Gray, advised instructors to use ''individual discretion to decide the
disposition of their examinations once the exam has started.'' Among the
options: delay the test until the lights return; postpone it until a
Saturday; grade the incomplete test; or cancel the exam altogether.
Professors are also encouraged to check a Web site to see if their exam rooms
have windows. ''In some classrooms,'' Mr. Gray noted, ''students may have
sufficient natural light.''
The rolling blackouts could hit most of the campuses of the University of
California and California State University. The two systems are embroiled in
a legal dispute with Enron Energy Services, a Houston-based company that, in
February, cut short a four-year contract to provide electricity directly to
the universities. For now, the two systems -- among the largest energy
consumers in the state -- are being supplied by Pacific Gas and Electric and
Southern California Edison.
Though several medical centers and the Davis, Los Angeles and Riverside
campuses of the University of California system are exempt from the
blackouts, the rest of the campuses have been put on alert.
At Berkeley, the warning from Mr. Gray only heightened pre-exam stress
levels.
''Stopping in the middle of a final would be detrimental to my grade because
I save the hardest questions until the end,'' said Heidi West, 20, a
sophomore majoring in political science.
Aaron Chung, a senior studying cognitive science, said it would be unfair to
grade half-finished exams because he often circled answers instinctively,
planning to return later with more care. ''The only thing I don't have a
problem with is if the professors give everyone A's,'' Mr. Chung, 23, said.
''You have to be under a lot of duress for that to happen.''
Gary L. Firestone, a biology professor, said he would move his 500-member
class out into the sunshine and tell students to spread their blue books on
the grass. But Jeff Good, a graduate student who teaches Introduction to
Syntax and Semantics, said he would probably cancel the exam because the
final counts for only 20 percent of the grade.
That is what Michelle Chen, a junior linguistics major in Mr. Good's class,
is hoping for.
''I would love a blackout,'' Ms. Chen said. ''I'm going to turn on my
air-conditioner. My toaster, too.''

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

Business
British Telecom
Patience Wheatcroft

05/12/2001
The Times of London
News International
Final 4
55
(Copyright Times Newspapers Ltd, 2001)

BRITISH TELECOM has inflicted enough damage on itself in the past year. But
others are still lining up to put the boot in. Hours after the company
announced a Pounds 5.9 billion rights issue and the separation of cash-hungry
BT Wireless, Moody's Investors Service lowered BT's credit rating. This
thumbs-down will cost BT an extra Pounds 35 million a year on existing loans
as well as making future working capital more expensive.
The timing is odd. One of the two other main agencies presented with the same
BT proposals maintained its rating and the other edged it down so little that
change-of-rating clauses were not triggered. In the meantime, the market
prices of BT debt have been rising. The Enron Cost of Credit, which measures
the overall risk premium on BT borrowing, has halved since mid February. Such
costly inconsistencies must focus more critical attention on the agencies,
whose power has grown out of proportion to their accountability.
Moody's verdict is, however, peanuts compared with the cost to BT of the
whims of Stephen Byers and the UK competition authorities. Moody's will no
doubt be aghast to learn that Yell could be worth Pounds 1 billion less as a
result.
In 1996 the Monopolies and Mergers Commission found that BT's Yellow Pages
had an 85 per cent monopoly of its market and made it sign undertakings to
cut prices by 2 per cent a year in real terms. The Office of Fair Trading has
reviewed this report; predictably, it has found that the enforced price cuts
have kept competition down and kept Yell's market share up.
The reasoning behind OFT advice that annual real price cuts should be doubled
is closed to scrutiny until Mr Byers has a new BT undertaking. But it appears
to argue that the market is still a monopoly, so Yell must be charging too
much, so prices should fall further.
The result, according to those formerly eager to buy Yell, is that a growth
business has been turned into a stagnant one, losing all momentum. This
sounds typical of the dead hand of UK regulation. It must strengthen the
resolve of BT's new leaders to remodel what the authorities so hate to the
greater advantage of shareholders.

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

OUTLOOK
Outlook
Houston needs to think small about future technology
WILLIAM DYLAN POWELL

05/13/2001
Houston Chronicle
2 STAR
4
(Copyright 2001)

OK, it's test time - sort of like a breakfast-time Rorschach test for Outlook
readers. Here we go: What's the first thing that comes to mind when someone
mentions Houston?
Time's up. Your answers may have been energy, medicine or seemingly random
acts of highway closure. But how about something very, very small? While
Houston may not exactly be synonymous with all things tiny, we may want to
start giving more mind share to the world of the miniature. As technology
advances, Houston may owe a great deal to the study of small substances.
Nanotechnology is the study of creating functional structures on a molecular
scale (the prefix "nano" means one billionth, or 10 to the ninth power
numerically). Its theories and practices give scientists the means to
construct useful entities using the smallest known particle of unaltered
matter.
Before your eyes glaze over in a terminology-induced science class flashback,
you should hear some of the possibilities that this technology could afford
residents of the Bayou City and their respective commercial enterprises. The
possibilities give the works of science fiction author Ray Bradbury a run for
their money, and include producing computers the size of viruses or factories
that could fit neatly on your desk. Cancer-destroying robots could roam a
patient's innards like mounted police at a spring break celebration.
Eventually, all diseases and mutations could be eliminated. And all
manufacturing processes would become waste-free, both in terms of the
environment and from a business process standpoint.
Sound like science fiction? Maybe, but truth is rapidly catching up with
fiction. A team of university researchers recently figured out how to make a
functional switch out of a single organic molecule. Discoveries such as these
have spawned several branch fields of study including nanobiotics, NEMS
(nanoelectromechanical systems) and nanomedicine.
This technology would surely change the world. But it would especially affect
Houston. Applications for nanotechnology are a great fit for Houston's
economic landscape. The chemical industry already has begun conducting
research in small-sizing certain chemical compounds. And the energy industry,
still our darling, has great interest in the power management possibilities
of nanotech. This could be Houston's next great vehicle for economic
development.
Nay-sayers have expressed caution regarding progress in this field on two
separate fronts. First on how distant potential commercial offerings remain;
and secondly on the potential dangers of combining genetic engineering,
nanotechnology and robotics (for fear of creating self-assembling intelligent
machines as often portrayed in science-fiction movies). But too much
technological progress is happening at once for the possibilities not to whet
the appetites of the entire scientific and business communities.
Already, developmental overtures have been heard from Houston's little sister
to the north. The Dallas-Fort Worth region and its growing base of
semiconductor, light assembly and defense industries are keeping a close eye
on developments in small science. In March, a private-sector company donated
$2.5 million to the University of Texas at Dallas for nanotech research. And
a handful of Dallas-area groups have been quietly conducting research of
their own. This money augments the federal government's nearly half-billion
dollar allotment of 2001 research funding for nanotechnology. Houston has its
own projects, but they receive far less publicity.
Houston's public nanoscience efforts have been centered mostly on Rice
University's grand Turks of academia. Pushing the envelope of academic
excellence as usual, Rice's heavyweight research barons continue to generate
and distribute knowledge on the many potential applications of this exciting
technology. But as successful as they are, they receive far less publicity
and support than other less commercially significant disciplines.
On May 29, leaders from the energy, medical and technology sectors will
converge at the Houston Technology Forum to discuss various technology trends
that will affect Houston's future. Will the keynote speakers (chief
executives from Compaq, the Texas Medical Center and Enron) address the issue
of what Houston is doing to prepare for advances in nanotechnology and its
potential economic impact on the region?
I certainly hope so. Energy, medicine and technology are the terra firma of
Houston's economy. Each of these industry sectors could reap profound
benefits by bringing nanotechnology's concepts to light.
Sure, the fruits of this nascent science are still a long way off. But it's
going to become remarkably important sooner than we think. So while
Houstonians are well known for our love of largeness, it's time to think
small. Let's take a careful evaluation of what this technology could mean to
our city and its economic development.

Drawing

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

A
Panel plots new course for area's future / Education, economics, quality of
life top group's list of needed improvements
MIKE SNYDER
Staff

05/13/2001
Houston Chronicle
4 STAR
33
(Copyright 2001)

A group of prominent business executives, worried that Houston's reputation
as an unpleasant place to live imperils its future, is developing a plan to
transform the city's educational system, urban design and economic base.
The work of the Center for Houston's Future, a nonprofit group affiliated
with the Greater Houston Partnership, reflects growing concern that Houston
must reposition itself as a vibrant, desirable destination if it is to
compete in an economic climate that empowers skilled workers to live wherever
they choose.
Creating such a "livable city," leaders of the effort say, would in turn
enrich the lives of every Houstonian.
"The interests of the business community are fully aligned with the interests
of the community at large," said Eugene H. Vaughan, a money management
executive and board chairman of the Center for Houston's Future.
A report prepared for the organization by a business-based task force
recommends that local leaders challenge long-held assumptions that have
discouraged meaningful land-use planning. It sketches a vision of Houston 20
years from now in which technology and other tools have revolutionized public
education, "livable city centers" have changed the physical landscape and
current civic leaders have groomed a new, more diverse generation of
successors.
The report argues that the business community's traditional leadership role
in Houston's civic affairs should continue. But it suggests the models of
business influence that prevailed in "the old days" should be re-examined.
"Those were the days when oil was king, and Houston was the energy capital of
the world - the days when a handful of `big' leaders, including CEOs of major
corporations, could meet in a room together and decide on the future of
Houston," the report states.
"But times have changed, and there is far less tolerance in Houston's highly
diverse, egalitarian society for a hidden oligarchy to run things, no matter
how benevolent those leaders might be."
The center's board includes top executives of some of Houston's most
successful and influential companies, including Enron Chairman Ken Lay; Ned
Holmes, chairman and CEO of Parkway Investments/Texas Inc.; James Royer,
president and CEO of Turner, Collie & Braden Inc.; William White, president
and CEO of WEDGE Group Inc.; and Jim Kollaer, president and CEO of the
Greater Houston Partnership.
Vaughan said the stature of the board members is an indication that the group
is not likely to generate plans that will simply sit on a shelf.
"They've got so many demands on their time that they're not going to fool
around with something that is ill-conceived," he said.
Rice University sociology professor Stephen Klineberg, one of the experts who
advised the task force that generated the report, agreed that the center's
work could be very influential.
"This is the first time there's been a systematic, coordinated effort on the
part of the business community" to improve Houston's quality of life,
Klineberg said.
The Center for Houston's Future was created in the early 1990s primarily as a
source of research information for the partnership, Houston's premier
business organization. But its role changed about two years ago, Vaughan
said, when Holmes became chairman of the partnership and encouraged the
center to take an aggressive approach to planning for the region's future.
Last summer, the center organized three workshops attended by 36 people
representing a cross section of the business community. These 10-day,
seven-night events, led by professional facilitators and featuring various
guest speakers, produced a report outlining four possible future Houston
scenarios.
James D. Calaway, a member of the center's board, said the details outlined
in the four scenarios are intended to be "illustrative" and are not
necessarily the actions the organization ultimately will recommend. However,
they provide insight into the direction of the group's thinking, he said.
In the first scenario, based on the assumption that local planning and
decision-making proceed much as they have in the past, the workshop
participants speculate that tension between the city and suburbs increases to
the point that the Legislature strips Houston of its annexation power.
Development is greatly restricted because of failure to meet clean-air
standards, property values plummet and the City Council must pass a large tax
rate increase.
Houston becomes a stronghold of low-wage, service-sector employment, and the
gap between rich and poor widens: "For many who live there, it's simply a
large urban sprawl, adrift in the global economy, or it's a three-year
hardship post on the way to something more desirable."
Scenario two suggests that Houston's leaders transform the educational system
by developing a "Teacher Network" that delivers Internet-based educational
resources into every classroom and teacher's home in the region. This in turn
leads to a communitywide electronic educational network, with every home in
the Houston area connected to the Internet by 2007.
These efforts, combined with universal, full-day preschool care, lead to
state-of-the-art local schools by 2010, with almost universal high school
graduation rates and 75 percent of these graduates going on to college or
technical training programs.
The report does not estimate the cost of these measures or identify how they
would be funded. Potential sources, Calaway said, include local, state and
federal tax money, private grants and reallocation of funds now being spent
on more traditional educational programs.
In scenario three, local leaders take bold steps to overcome Houston's
reputation for sprawl, dirty air and lack of green space - perceptions that
hamper efforts to attract the talent needed to keep the region economically
competitive.
These leaders develop a vision of Houston based on the creation of "livable
city centers" - major activity centers targeted for redesign and
redevelopment - and the connection of these centers through "personal and
public transport in corridors that delight the eye."
Within the centers, streets are reconstructed to better accommodate
pedestrians. Financial incentives prompt developers to provide a wide range
of housing styles, including substantial affordable housing. The Main Street
light rail line is built, succeeds spectacularly and is followed by more rail
lines extending in various directions.
To accomplish these goals, the report states, local leaders must overcome
their "ingrained suspicion of planning," and the City Council must adopt
"new, more prescriptive development standards" within the livable city
centers. Early successes lead to a public referendum authorizing the
expenditure of $8 billion over 20 years to create the "livable city."
Scenario four focuses on making Houston a "crossroads of the world economy."
The city's business leadership becomes broader and more diverse, and it turns
its energy toward diversifying the economy.
The energy industry, adapting to the new economic climate, transforms its
business model and creates new, high-tech enterprises. Space, nanotechnology
and biotechnology research help launch hundreds of companies that quickly
become significant global players.
The workshop participants concluded that Houston must accomplish key elements
of scenarios two, three and four if it is to become a "true world-class city
in which to live and conduct business."
Calaway and Vaughan said the next steps will include designating committees
to develop specific recommendations in each of the broad areas studied, such
as education and quality of life. Working groups then will be established to
begin translating these ideas into policy, they said.
Although the center is focused on the long term, they said, it must produce
results as soon as possible.
"If we do not get serious about this, 20 years from now we're going to be a
low-wage environment, putting people in very, very dead- end jobs," Calaway
said during a recent presentation on the group's work to members of the
nonprofit Gulf Coast Institute.
"We've got to get the quality of life right, but we've also got to make sure
that we educate these kids for our future."

Mugs: 1. Ken Lay (p. 45); 2. Ned Holmes (p. 45); 3. James Royer (p. 45); 4.
Jim Kollaer (p. 45)

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

MSEB not to pick up 15 pc in DPC after phase II completion

05/13/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, May 13 (PTI) Maharashtra State Electricity Board (MSEB) has decided
not to pick up the remaining 15 per cent equity in Enron-promoted Dabhol
Power Company (DPC), which it was earlier supposed to, after the complete
construction of the entire USD three billion power project in Dabhol.
"It is true that we had promised to take the 15 per cent, translating into
infusion of around USD 65 million and given the serious financial stress the
board is facing, it is not going to be possible for us to participate in the
phase II of the project", a senior MSEB official told PTI here Sunday.
Currently, Enron International owns 65 per cent, MSEB -15 per cent, General
Electric and Bechtel 10 per cent each.
However, MSEB is yet to send an official intimation to DPC in this regard,
the official said adding the board would inform the company soon after the
completion of the project.
DPC's USD 1.87 billion phase II would be fired on June seven, 2001, thus
marking completion of the 2,184 MW project.
DPC, which received a Foreign Investment and Promotion Board clearance in
last December for its 10.83 billion foreign Direct Investment, has not been
able to scout an alternative fifth partner for MSEB's equity.
The company had decided to off load the 15 per cent of its current holding of
65 per cent to a new entity, as according to the company's global
debt-consolidation it needed to maintain its stake at 50 per cent in DPC
after its completion.
In order to avoid any delay, Enron had agreed to meet up with the equity
shortfall as per the former's agreement with its lenders.
(THROUGH ASIA PULSE) 13-05 2001

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

Enron plans to pull out of Gulf gas project: MEED

05/13/2001
Agence France-Presse
(Copyright 2001)

DUBAI, May 13 (AFP) - Enron Corp. of the United States plans to pull out of a
project to deliver Qatari gas to the United Arab Emirates (UAE), Middle East
Economic Digest (MEED) reported on Sunday.
Enron is a partner in the Dolphin Energy project along with the
Franco-Belgian company TotalFinaElf and the Abu Dhabi government- owned UAE
Offsets Group (UOG). Its role is to build a pipeline under the Gulf between
Qatar and Abu Dhabi.
"The profit margin for Enron would be low. At present, the Dolphin project is
being developed primarily as an upstream venture," an industry source told
MEED.
Another industry publication, Middle East Economic Survey (MEES), reported
last week that the two other partners regarded Enron's estimated cost for
constructing and laying the 350-kilometre (220- mile) undersea pipeline as
too high.
"There is talk of new partners," a source with TotalFinaElf, whose role is to
develop a block in Qatar's giant North Field, told MEED. "But whatever
happens, we are staying."
On March 14, Qatar and the UAE inked a 25-year term sheet agreement on the
project, setting the volume at two billion cubic feet (20 million cubic
metres) of natural gas per day.
Differences over pricing and volumes had put back the signing of the
agreement for two years after a first statement of principle for Dolphin was
inked by Qatar and UOG in March 1999.
According to MEES, Qatar Petroleum and UOG have finally agreed on a gas price
formula of 1.3 dollars per million BTU (British thermal units) following
"high-level political intervention from Qatar and Abu Dhabi".
TotalFinaElf and Enron are strategic partners in the multi- billion-dollar
project, each holding a 24.5 percent share in Dolphin Energy Limited (DEL),
with UOG retaining a controlling 51 percent stake.
From Abu Dhabi, the gas is to be distributed inside the emirate and on to
Dubai and Oman. An extension to Pakistan through an undersea pipeline is also
planned, as part of a regional gas network.
hc/rp

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

BUSINESS
SMALL BUSINESS / Pleasure cruisin' / Yacht fleet owner offers customers what
amounts to limo service on the lake
CAROL RUST
Special to the Chronicle

05/13/2001
Houston Chronicle
2 STAR
1
(Copyright 2001)

KEMAH - Tom Lober trundled home from second grade with a three- tiered wooden
box he'd made at school.
"This is my houseboat," he told his mother 35 years ago. "When I grow up, I'm
going to live on a boat."
His practical-minded mother put the "boat" to work as a patio plant stand
until it finally rotted from a decade of exposure.
On a recent evening, Lober stood on the bow of one of his four charter
yachts, enjoying the sunset-tinted water and a mild breeze as the 100-foot
luxury boat moved quietly from Clear Lake into Galveston Bay.
"This is what I love," Lober said, scanning a horizon dotted with distant
boats. "The others are here to party, but this is it for me."
The founder and owner of Star Fleet Entertainment Yachts spoke calmly against
the din of a mini-Mardi Gras heating up on middeck, where bead-clad
executives were letting their hair down at their annual appreciation party
for a major customer. A Mae West look- alike hired for the event meandered
among them, handing out cigars and sultry comments in her mermaid-cut white
dress studded with faux pearls and a white feather boa twirled about her
neck.
In the eight and one-half years since the 42-year-old Lober started Star
Fleet, he's seen everything from fire-eaters to hula dancers as entertainment
on the hundreds of custom cruises his staff of 70 puts together each year.
Last year, the company booked 400 cruises, which translated into $2.3 million
in gross sales, in events ranging from Gulf Coast versions of company picnics
to a bat mitzvah with a Gilligan's Island theme. One guy recently plunked
down $2,000 to charter an entire boat for a date.
One of Lober's seven captains is, handily, a licensed minister for weddings.
Star Fleet staff recently added squirt guns, Hula Hoops and limbo sticks as
regular on-board equipment.
"It's a bizarre business," Lober said. "Nothing seems unusual anymore."
Nearly all Star Fleet's cruises include dinner. His kitchen staff does the
prep work for hors d'oeuvres and main courses on land near the marina,
transferring them to a generous galley on board before customers arrive. The
galley crew does the final cooking.
Star Fleet Entertainment Yachts is one of about a dozen businesses of its
size in the country that provides strictly private charter yacht cruises, but
Lober has hundreds of competitors locally.
"I'm competing with caterers, hotels, restaurants - anyone in the eating,
drinking and party business," he said. "People say there are two things
you're never supposed to own: a boat and a restaurant. I put a restaurant on
a boat."
Last month, he launched what he believes is the first-ever water limousine, a
30-foot yacht complete with wet bar, sound system, leather couches, TV and
VCR that takes small groups to waterfront restaurants and bars, just like a
limo does on land.
Sometimes, his clients hop off and dine at one of the restaurants on the
Kemah Boardwalk while the limo is anchored beside it. In other cases, waiters
deliver the food to the boat, equipped with removable dining tables that can
seat 14, and the customers dine while cruising Clear Lake.
Lober was a natural shoo-in for a career on the water. His father owned a
supply boat business in Houston and a fleet of shrimp boats based in
Trinidad. He eventually became president of his dad's supply boat business
after getting a master's degree in maritime management from Texas A&M
Maritime Academy in Galveston in 1981.
But he still had that idea from second grade that grew from living on a boat
to providing exclusive entertainment on the water.
In 1986, he joined the Passenger Vessel Association, a national group of
vessel owners that provides public or private cruises for gaming, ecotourism
or other entertainment. He attended seminars, talked to boat owners,
researched trends in the industry and tried to figure out what it would take
to float his idea.
Lober drew up plans for a boat big enough to accommodate up to 150
passengers, but with a three-foot draft to keep from running aground in the
notoriously shallow Clear Lake and Galveston Bay.
"I wanted to be able to take that boat anywhere on the lake," which is five
feet deep in places, he said.
Bankers were skeptical when he approached them for a loan.
"This was a new business in Houston that had never been done before," Lober
said. "They had no confidence.
"I finally got to the point where I'd just take my business plan into a bank
and say, `I know I'm not going to get a loan - just look at what I've got and
tell me what it needs,' " he said.
Even without a loan in place, Lober began hands-on research. During the week,
he still worked at his father's supply boat business, but flew to Fort
Lauderdale, Fla., on weekends to work as a deck hand and food server for a
charter yacht company to learn the business from the bottom up.
After a year of loan seeking, he found a lender at the Passenger Vessel
Association's annual meeting. Caterpillar Finance agreed to lend him 60
percent of the $950,000 in construction costs if he installed Caterpillar
engines on the boat.
Construction took a year, during which Lober continued his research, serving
drinks on weekends aboard a charter boat on the Detroit River and Lake St.
Clair.
Finally, Lober launched Star Gazer in October 1993.
The maritime academy might have taught him how to navigate by the stars, but
it didn't prepare him for marketing.
"I didn't know what I was doing," Lober said. "The first year, I spent
$125,000 in marketing blunders," including a $50,000 mass mail campaign that
he called "a total flop."
Marketing was twice as expensive as he thought it would be and took twice as
long for potential customers to understand the concept he was trying to sell,
he said. Meanwhile, his boat sat in the stall for up to three weeks at a
time.
Lober had a $30,000 monthly overhead in debt service, office rental,
insurance and slip fees, and "I still had to pay it if the boat didn't leave
once," he said.
Panicked, he joined the Greater Houston Partnership to seek out ideas, and he
got one: target marketing.
He and his small staff scrutinized every detail about the people who used the
boat and set out to find more like them. He set his sights on the corporate
client, which makes up about 70 percent of his business today. Corporate
customers include Enron, Exxon Mobil, Shell, Continental Airlines and Katy
Mills mall.
"We have had our party with Star Fleet every year for five years," said Ravi
Lal, director of ethylene division of Technip, based in San Dimas, Calif.
"The first year, I wanted to do something special that I hadn't seen before.
Everybody likes it, and everybody wants to come back."
Business slowly began to build, and word spread. Lober added the 90-foot Star
Cruiser in 1997, the 74-foot Star Spirit in 1999, and brought in a fourth,
the Lake Limo, last month. Also in 1999, he bought 6 acres with 600 feet of
waterfront and built Star Fleet Marina. While part of that land is still
undeveloped, it eventually will become a parking lot for 500 cars when Lober
adds a fifth large yacht, Star Ship, sometime in the future.
"We plan to add Star Ship when we're turning down enough business from the
other boats," he said.
After more than eight years, Lober has yet to take home a salary, putting
everything back into the business.
The more he puts back, the more business he can accommodate.
But Lober and his staff still keep close tabs on their customers.
"We track everything - which individuals, what type of event, whether they
prefer sit-down dinners, how they heard about us - you name it," he said.
It's a lot of details. He knows that blackout shades, pull-down projector
screens and multiple microphone jacks are needed for presentations, and that
some clients like to be picked up at one of the Galveston hotels or other
locations on the Houston Ship Channel.
If a customer hires a deejay, a crewmember provides padding to put underneath
the CD player on the bandstand because dancing on the steel dance floor
causes the player to bounce.
Lober's three full-time cruise consultants handle charter buses to and from
the marina, limos, menus, photographers and decorations. They work with Star
Fleet's in-house florist and theme designer to provide floral arrangements
for sit-down dinners and Hawaiian leis of fresh orchids and hibiscus for a
major retailer's party, for which the florist helped transform the boat's
stanchions into palm trees.
And consultants have their own suggestions, such as bestowing captains' hats
instead of the usual corsages to employees with top sales who were being
honored at a recent floating awards banquet.
Lober believes his company's custom service brings customers back.
"They handle all the details once, and after customers go on that first
cruise, they're sold on the concept," he said. "People love something
different. We provide a different kind of party. If they do it once, they
usually want to do it again."
But cruises aren't limited to parties, Lober said. Customers have chartered
boats for banquets, retreats, new product introductions, incentive awards
dinners and for scattering loved ones' ashes.
About 60 percent of Star Fleet's business is repeat and referral. The recent
corporate party featuring the Mae West look-alike was the fifth the company
has chosen to have with Star Fleet.
Part of Lober's initial marketing problem - which continues today - is that
Houstonians just don't realize how close to the water they are.
"It's not like Fort Lauderdale, where water is part of the landscape," he
said. "In Houston, there's no high-visibility location to see the water, just
one spot on Loop 610 that overlooks the Port of Houston. Even in Clear Lake,
there are only one or two places when you drive around the lake that you can
actually see the water. We don't have a San Francisco Bay or New York Harbor.
So people have to be reminded."
He also has to deal with the misconception that only the very rich can afford
cruises, Lober said.
"Some people think they can't afford a luxury yacht, but when they compare
our complete package with upscale restaurants, hotel banquet facilities,
country clubs and wedding manors, we are quite competitive," he said. "And
our food is gourmet quality. Just like a five-star hotel, we never cut
corners."
Event cruises start at $40 per guest including food, bar, entertainment, tax
and gratuities.
Lober depends heavily on customer surveys to develop the service he and his
crew provide. And customers informally give Star Fleet staff new ideas with
some of the extras they bring aboard, such as the squirt guns, Mardi Gras
beads, Hula Hoops and limbo sticks.
"We learn a lot from our customers," he said. "We see what they do, take the
best and give it back to them."
Because customer surveys indicate that about 20 percent of Star Fleet's
business comes from being seen on the water, Lober and his captains make
their crafts as visible as possible whenever they take them out. The real
opportunity for hot-dogging comes when a customer charters two or three
boats, and they raft up to become the Star Fleet flotilla, with customers
moving from one boat to another. A three-boat charter can handle up to 375
guests.
But one boat can still do a lot of advertising.
At the recent corporate party, Mae West joined the other revelers who were
slinging Mardi Gras beads at al fresco diners as Capt. Tony DeFore edged Star
Gazer close to the Kemah waterfront. They may not have known it, but they
were doing a little of Lober's public relations work for him.
As the boat pulled back into the Star Fleet Marina, Lober pointed out a barge
under construction. When it is finished - by the end of the year, he hopes -
the bottom floor will be a galley for food preparation, the second the Star
Fleet office and the third floor an 1,800-square-foot apartment.
It will kind of resemble that three-tiered wooden box he brought home from
school years ago, Lober says.
And he's going to live at the top.

Photos: 1-2. Left: Star Gazer, first of the Star Fleet Entertainment Yachts,
launched in 1993, sets sail for Southshore Harbor earlier this month. From
left to right are bartender Bridget Byous, server Leona Clark, Cruise
Director Edith Mitchell and President Tom Lober. Below: Cruise Director Edith
Mitchell unties the Star Gazer's bow line (color); 3. Star Fleet
Entertainment yachts President Tom Lober watches server Leona Clark polish
silverware for a buffet dinner aboard the Star Gazer. Last year, the company
booked more than 400 cruises, generating $2.3 million (color, p. 4)

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

More power to reform agenda
Soma Banerjee

05/13/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

THE electricity industry is often identified as the black sheep in the
infrastructure sector which has continued to lag behind despite an overdose
of government support.
Despite being one of the earlier industries to be opened up, private
investments in this sector have failed to take off.
Worse, the only sizeable project which was something to write home about
Enrons Dabhol Power plant in Maharashtra is currently a under cloud with its
promoters involved in a legal battle with the state entity and its sole
consumer for non-payment of bills. Policy makers and investors in the energy
sector are still groping to find ways and means to improve the performance of
this key industry.
Although private investments were expected to come in a big way in creating
new capacities, policy uncertainties and above all the poor financial health
of the consumer, in most cases the SEBs, have posed major problems for power
plant developers.
After about ten years of liberalisation, the private sector has to its credit
only about 5000 MW and according to projections by experts investments in
greenfield projects are unlikely before four to five years.
The factors that have been taken into consideration in the current projection
are almost inbuilt into the system. For one, there is a general agreement
that stressing on generation alone without doing much on the distribution
front has eroded the financial health of most SEBs.
``Private power developers cannot be expected to invest in projects till they
are assured that they will be paid for the energy produced, experts say.
But like the recent Montek Singh Ahluwalia report maintains, such reforms
cannot be done overnight and will require minimum five to seven years before
they break even.
The sector has already seen major exits like Cogentrix and Powergen and if
the current trends are anything to go by it would not be long before Enron
too says Sayonara India, claim sources in the power industry.
IPPAI, an association for private power investments, feels that the flip-flop
by the government as far as power policies are concerned have made it
difficult for investors to take decisions.
``Take this as an example at one time there were more than 200 MoUs signed up
for private power projects, the government provided counter guarantees for
eight projects, of which only three have taken off. Of this the Enron project
is already facing problems of nonpayment, says a senior source.
According to estimates drawn up by financial institutions like Power Finance
Corporation an organisation responsible for monitoring the financial health
of the SEBs and helping them with their reform programmes almost all the SEBs
have registered a negative turnover. Which is why the financing or
escrowability of SEBs across the country has been reduced to zero.
According to Union power minister Suresh Prabhu, the states are now
responsive to changes and reforms and the recent drive initiated by the
Centre to work with the state governments was expected to yield results.
But this sector has seen far too many committees which have failed to yield
much hope and it is only sheer determination of SEBs and political will that
can help this backbencher.

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

India Power Min: New Power Deal With Enron Unit Possible
By Himendra Kumar
Of DOW JONES NEWSWIRES

05/12/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- India is hopeful the Maharashtra State Electricity
Board's power purchase agreement with the U.S. energy company Enron Corp.'s
(ENE) Indian unit Dabhol Power Co. can be renegotiated and the DPC's dispute
over payments be settled, the country's federal Power Minister Suresh Prabhu
said.
In a weekend interview with Dow Jones Newswires, Prabhu said the very fact
that the DPC had come to the negotiating table for discussions on its power
price was an indication that Enron was keen to save its India project.
A special panel, set up by the Maharashtra state government, met with
representatives of the DPC, for the first time Friday and agreed to another
meeting May 23.
Friday's meeting lasted for more than two hours.
"I am of the view that a negotiated settlement is possible since the first
meeting of DPC with the Maharahtra state expert panel went off well. There
has been a positive response both from the DPC and the MSEB after the
meeting. The central government will also reciprocate by participating in a
meaningful dialogue. The next meeting will really decide on how it all goes,"
Prabhu said.
Earlier this week, in an e-mail to Dow Jones Newswires from Houston, Enron
Vice President John Ambler however, said, "While we have constantly
maintained that we are open to continuing a dialogue towards resolving
issues, this (Friday) meeting should in no manner be construed as an open
offer from DPC to renegotiate the terms of the contract."
The Maharashtra state government contends that the price paid for electricity
from the Dabhol power plant, India's biggest-ever foreign investment at $2.9
billion, is "unaffordable" and seeks to renegotiate tariffs.
A recent committee appointed by the government, the Godbole panel,
recommended that the power purchase agreement be renegotiated.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to Dabhol charging 7.1 rupees ($1=INR46.8825) a kilowatt-hour
for its power, compared with INR1.5/kwh charged by other suppliers.
The 2,184-megawatt DPC project in Maharashtra has been mired in financial
disputes after the Maharashtra State Electricity Board, its main customer,
failed to pay the December 2000 and January bills. The Godbole panel is
working toward lowering the DPC's power tariff and allowing the sale of
excess power to the federal government or its utilities. A restructuring of
the DPC's stakeholding may also be on the agenda.
The Maharashtra government has asked the committee to try to negotiate a
revised agreement within a month. The DPC currently operates a 740-megawatt
naphtha plant contributing about 0.7% to India's installed capacity. Enron
has maintained that work will be completed by the year-end in the second
phase of the Dabhol project that will add 1,444 MW to its capacity. The plant
will switch from naphtha to liquefied natural gas as a fuel source in 2002.
Texas-based Enron has a 65% stake in the DPC and is the project's largest
shareholder. Other shareholders include the MSEB with 15%, and General
Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427;
himendra.kumar@dowjones.com

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

India: Talks begin on Dabhol issue

05/12/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 11. OFFICIALS of Enron India today met the expert committee
headed by Dr Madhav Godbole to discuss the fate of Enron's Dabhol Power
Company.
Mr A.V. Gokak, Union Government representative, who was appointed only last
night, could not attend the meeting due to the short notice.
Lenders to the project who were to attend the meeting stayed away.
Instead, Mr A.G. Karkhanis, former Executive Director, Industrial Development
Bank of India, attended as observer on behalf of foreign and Indian lenders,
Mr Vinay Mohan Lal, Energy Secretary, told reporters here after the meeting.
When asked about Enron's reluctance to renegotiate, Mr Lal said: "They are
coming again on May 23. What does that mean?"
Though none of those present at the meeting was willing to give more details,
senior State Government officials had earlier told Business Line that the
State would be willing to discuss phase II only after a decision on the
rebate slapped on DPC.
"Basically our strategy will be to bring the Rs 401- crore rebate payable by
DPC to the centre-stage," the official said. "The company has not mentioned a
single word about the rebate in any of their letters to either the MSEB or
the State. And we, on the other hand, have discussed anything but the rebate
in our letters to DPC," he said.
Mr Wade Cline, Managing Director, Enron India, did not comment on whether the
company would issue the preliminary termination notice.
The Maharashtra State Electricity Board (MSEB) Chairman, Mr Vinay Bansal, and
Mr Lal had last evening briefed the Democratic Front constituents about their
stand vis-a-vis Enron.
They are understood to have told the political brass of the State that MSEB
does not need the second phase of the Dabhol power project.
They categorically said MSEB would not buy power from DPC-phase II, it is
learnt.
MSEB also reiterated its stand that DPC should adjust the dues owed by it
against the non-performance penalty.
Senior MSEB officials said the board had replied to the arbitration notice
issued by DPC and made its position clear. The board is of the opinion that
DPC should adjust Rs 213 crore - the December and January bills - against the
Rs 401 crore penalty for performance default.
The State Government also has backed the MSEB in its replies to the three
arbitration notices served on it. It has said that since MSEB does not accept
the charges - non-compliance with the power purchase agreement (PPA) -
leveled against it, the State is not bound to pay.
The Centre too is understood to have backed MSEB in its preliminary reply to
the conciliation notice from DPC.
Today's meeting was attended by Mr Cline, Mr Neil McGregor, President, DPC,
Mr Mukesh Tyagi, Vice-President, DPC, and Mr Sanjeev Khandekar, VP, DPC, and
Mr Mohan Gurunath, Chief Financial Officer, DPC.
Among the renegotiation panel members, Mr Deepak Parekh, Mr E A S Sarma and
Mr Kirit Parikh were also unable to attend. The next meeting is scheduled on
May 23, Mr Lal said.
Gokak nominated to panel: The Government has nominated former fertiliser and
telecom secretary, Mr A.V. Gokak, to the arbitration committee involving
Dabhol Power Company (DPC).
The Power Ministry had earlier mooted the additional solicitor general, Mr
Harish Salve's candidature for the job.
The conciliation process, however, has been hanging fire as the third
conciliator is yet to be appointed. Dabhol Power Company had written to the
Centre last month seeking six names for selection of a mutually acceptable
conciliator to kick- start the conciliation process.
DPC's letter to the Finance Ministry was seen in the context of the
substantial delay between the initiation of the conciliation process three
weeks ago and the finalisation of the conciliators. Soon after the
conciliation process was initiated, DPC decided to invoke political force
majeure and moved in for arbitration - a prelude to termination of the
project.
Our Bureau

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

India to allow 3rd party sale if DPC, MSEB jointly approach

05/12/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, May 12 (PTI) The Federal Government will allow sale of power to a
"willing buyer" if the Enron-promoted Dabhol Power Company (DPC) and
Maharashtra State Electricity Board (MSEB) will together approach the power
ministry with a concrete proposal for their 2,184 mw project in Dabhol.
"I will give whatever status they want, including a mega project one, if DPC
and MSEB jointly approach the Centre (Federal Government) for the same",
Indian Power Minister Suresh Prabhu told reporters here Saturday.
He said the Indian Government would extend its cooperation to the Maharashtra
government (western state) "in every way" to resolve the imbroglio between
MSEB and DPC.
When pointed out that both the state government and DPC were of the opinion
that federal power utility National Thermal Power Corporation (NTPC) should
buy the power, Prabhu said NTPC cannot do so as it was power selling entity
and not buying one.
"There is no question of NTPC buying power from the project since long term
power purchase agreements (PPAs) have been signed by NTPC with the buying
states", he reiterated.
Prabhu said the Indian Government would also try and find out potential
buyers of DPC power "if other states were willing to buy the same".
Earlier in his meeting with state chief minister Vilasrao Deshmukh, the
latter had suggested that NTPC sell the excess power over and above the
300-400 MW needed for the state from the 740 MW phase-I and soon to be
commissioned phase-II of 1,444 MW, to other needy states.
(THROUGH ASIA PULSE) 12-05 2001

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

LOCAL STORIES
DEFAZIO CALLS FOR STATE TO BUY PGE TO PROTECT RATES
DAVE HOGAN AND JEFF MAPES of the Oregonian Staff

05/12/2001
Portland Oregonian
SUNRISE
C01
(Copyright (c) The Oregonian 2001)

Summary: The suggestion generates little enthusiasm and critics suspect it's
motivated by the lawmaker's possible race for governor
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets." -- U.S. REP. PETER DeFAZIO D-ORE.
The state of Oregon should consider buying investor-owned Portland General
Electric to help protect Oregonians from gyrations in the electricity market,
U.S. Rep. Peter DeFazio declared Friday.
Gov. John Kitzhaber reacted politely and said he'll explore the idea, but
others said it's a long shot because of political, financial and timing
factors.
Critics said the proposal appeared aimed more at attracting attention to
DeFazio's potential candidacy for governor than anything else.
Several companies already are considering buying the utility, but DeFazio
said state ownership could help keep PGE customers' electricity rates low and
generate profits that could help the rest of Oregon.
"I believe this is an extraordinary opportunity and a way that we can
insulate almost a quarter of our population and a core of Oregon's business
community from the craziness that is going on in the energy wholesale
markets," said DeFazio, D-Ore.
PGE serves about 725,000 retail customers, mostly in the Portland area, and
is owned by Houston-based Enron Corp. PGE's sale to Nevada's Sierra Pacific
Resources for $3.1 billion officially fell apart last month. Other possible
buyers include Northwest Natural and ScottishPower, which owns PacifiCorp.
While Enron and PGE officials declined to comment Friday, legislative leaders
showed no particular enthusiasm for DeFazio's idea.
"I appreciate his efforts, but I don't think it's the right idea at this
time," said House Speaker Mark Simmons, R-Elgin. He said the state already
has a package of bills aimed at spurring more energy production and
conservation.
Senate President Gene Derfler, R-Salem, said he'd be willing to sit down and
talk with DeFazio. "I would not just shut the door," he said, but he doesn't
plan to devote much work to the proposal. Derfler questioned whether state
government could run a utility as efficiently as a business.
DeFazio said a PGE purchase would offer several benefits. State ownership
would put control of PGE in local hands instead of those of a faraway
corporation such as ScottishPower. For PGE customers, state ownership would
provide some protection and stability in electricity rates. It also would be
a good investment that would pay for itself and perhaps pump revenue back
into the state's coffers.
The purchase could be financed with tax-exempt bonds sold by the state.
DeFazio said state Treasurer Randall Edwards had told him the idea was "in
the realm of possibility."
DeFazio's idea is an intriguing one and could provide some benefits, said Bob
Jenks, executive director of the Citizens' Utility Board, which represents
customers of investor-owned utilities such as PGE.
Jenks said the primary benefit would be that, if the state bought PGE, the
utility would be able to buy lower-priced electricity from the Bonneville
Power Administration, which is required to sell power at lower rates to
publicly owned utilities. However, a publicly owned PGE wouldn't be able to
buy the lower-priced BPA power for about five years because of electricity
sales contracts that already are in place.
And even if PGE were able to buy lower-priced BPA power, that wouldn't
necessarily translate to lower electricity bills for PGE customers, Jenks
said. In addition, he said it could increase rates for other publicly owned
utilities because the BPA has a shortage of cheap hydropower.
The state Public Utility Commission would have to approve any sale of PGE,
but outgoing PUC Chairman Ron Eachus criticized DeFazio's proposal, saying it
had the potential to increase rates both for PGE customers and for publicly
owned utilities. He also said it seemed designed to get political attention
for DeFazio's potential candidacy.
"I think we're in the political season where people are proposing grandiose
schemes that aren't very well thought out, and this seems to be one of
those," Eachus said.
DeFazio conceded that a high-profile proposal focused on a Portland-area
issue such as the ownership of PGE would be a good way for a candidate to
build support for a run for governor, but he said that had nothing to do with
his plan.
You can reach Dave Hogan at 503-221-8531 or by e-mail at
davehogan@news.oregonian.com.

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

Congressman suggests state buy PGE
By CHARLES E. BEGGS
Associated Press Writer

05/11/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SALEM, Ore. (AP) - Congressman Peter DeFazio on Friday proposed that the
state buy Portland General Electric as a way to hold down power costs.
The Democrat outlined his plan after presenting it to Gov. John Kitzhaber,
who said he would ask his energy advisers to analyze it.
PGE is Oregon's biggest electric utility, serving more than 700,000
customers. DeFazio said a state purchase of the company could insulate many
Oregonians from "the craziness in power markets."
DeFazio said the state could buy the company by issuing revenue bonds and
have the utility operate as a public power entity.
He said the purchase would give the state a diverse mix of transmission
rights along with hydropower, gas, coal and renewable energy sources.
"While I have not exhaustively researched the proposal, it does appear to be
feasible," said DeFazio, an opponent of electric deregulation.
Enron Corp., the Texas-based owner of PGE, is trying to sell the utility.
Sierra Pacific last month abandoned its plan to buy PGE for $3.1 billion,
citing increasing difficulties in the current market and the political
environment in the West.
Kitzhaber said he's not opposed to the idea of the state buying a private
utility, as long as it would benefit consumers.
DeFazio said PGE has been a profitable company, and putting it in public
ownership could give it preference over private utilities for the Bonneville
Power Administration's hydropower.
The congressman's suggestion wasn't welcomed by the Legislature.
"Thanks, but no thanks," said House Speaker Mark Simmons.
"Philosophically, I think it's the wrong approach," he said. "We have a
bipartisan package of bills dealing with the issue."
Among those are his measure to delay partial electric deregulation for large
businesses and a bill to speed up the process for siting temporary generating
plants.
Senate President Gene Derfler didn't reject the idea, but said the
Legislature doesn't have enough time in the current session to take on a job
like a utility purchase.

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


---------------------- Forwarded by Clarissa Garcia/HOU/ECT on 02/01/2000
10:45 AM ---------------------------

djones1@columbiaenergygroup.com on 02/01/2000 09:03:34 AM
To: Clarissa Garcia/HOU/ECT@ECT
cc:
Subject: Re: CES TGP FEB 00 SUPPLY

SCG volume thru 2/7 is zero.

---------------------- Forwarded by Donna Jones/CES/ColumbiaGas on 02/01/2000
09:57 AM ---------------------------

Donna Jones
02/01/2000 09:52 AM

To: Clarissa_Garcia@enron.com
cc:
Subject: Re: CES TGP FEB 00 SUPPLY

One change.  Please increase Boston to 97.

Thanks.

 - Enron Supply - TGP.xls
 - ATTK6HN0


Pat, thanks for the revisions to the AESOP language.  I have another one for
you.  The attached is a proposed retention program for persons in HR who may
be facing outsourcing.  There is a need to incentivize these key personnel to
stick around now and, if there is an outsourcing, to help with the
transition.  Your comments/thoughts would be appreciated.  Thanks.  Michelle

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

Michelle Cash
Enron North America Corp.
1400 Smith Street, EB 3823
Houston, Texas  77002
(713) 853-6401
michelle.cash@enron.com

This message may contain confidential information that is protected by the
attorney-client and/or work product privileges.
----- Forwarded by Michelle Cash/HOU/ECT on 06/21/2000 01:11 PM -----

	Kimberly Rizzi
	06/21/2000 12:19 PM

		 To: Michelle Cash/HOU/ECT@ECT, Brian Schaffer/Corp/Enron@ENRON
		 cc: Cynthia Barrow/HR/Corp/Enron@ENRON, David O'Dell/HR/Corp/Enron@ENRON
		 Subject: For Your Review and Approval - project completion

Michelle and Brian,

Please review the attached draft memo for distribution to employees to
communicate the project completion program.  We would present each employee
with an individualized memo showing their award amount and the terms.  The
department head would be responsible for filling in the project term.  Let me
know what changes need to be made to the memo before we use it.  They would
like to communicate to their folks as soon as possible.

Also, please look over the revised presentation for the project completion
incentive for the final time - no significant changes have been made.

Thanks,
Kim


Just as clarification - we start 6 players and have weekly scoring in haed to
head matchups.  You can chage your lineup before each day's worth of action.
Your sixth man can be any position.  The draft order will be determind at
10:30.
---------------------- Forwarded by Eric Bass/HOU/ECT on 10/31/2000 08:19 AM
---------------------------

	Enron North America Corp.

	From:  Eric Bass                           10/31/2000 08:01 AM

To: David Baumbach/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Bryan
Hull/HOU/ECT@ECT, Harry Bucalo/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT,
Michael Walters/HOU/ECT@ECT, Matthew Lenhart/HOU/ECT@ECT
cc:
Subject: Fantast Basketball DRAFT TODAY @ 10:30

Since the NBA season begins tonight, we need to have the fantasy basketball
draft today @ 10:30 AM. Tell me if this is ok.  If you do not remember the
rules, go to the link below and scroll down to the bottom of the page to the
rules link.

The Academy will roll once again!

And by the way plove, it is last day for everyone.  You can take 1 minute out
of every half hour today to make a pick.  Everyone else has agreed.  Besides
it won't be as much fun without my whipping boy again.

basketball.commissioner.com/efba

I never heard anything back from Walker's Westies so The Rounders are taking
his spot.

-Eric


Do we need to talk?


Mark,

Cynthia Scneider recommended I check with you on the ability of Chinese
government-owned entities to enter into derivative contracts with Enron.  Has
ECT done any research on China?  Please see the e-mail below for details on
counterparty, size, term, etc.

Thanks,
Heather Mitchell
---------------------- Forwarded by Heather J Mitchell/ENRON_DEVELOPMENT on
11/09/98 04:42 PM ---------------------------

Heather J Mitchell
11/05/98 03:36 PM

To:   Cynthia L Schneider@ENRON_DEVELOPMENT
cc:   Doug Leach@ENRON_DEVELOPMENT
Subject:  LNG hedging for China

Cynthia,

The EI LNG Group is looking at providing LNG price risk management for China.
Could you please confirm whether China National Oil Company (Corp.?) and
China State Power Corp. are creditworthy counterparties?  Before Doug and I
talk to the traders I want to see whether we would even be willing to sell
LNG risk management to them.

The structure the group is most likely interested in is 500,000 MT to
1,000,000 MT per year for five to 20 years (depending on what our traders are
comfortable with).  I imagine the Chinese would be interested in a cap or
collar, and not a fixed price.

What other info do you need for a quick estimate?

Thanks,
Heather


Pierre-Philippe,

I am a Managing Director, Research.

Please, feel free to give my E-mail address.

Vince

"Pierre-Philippe Ste-Marie" <stemarie@icubed.com> on 10/28/2000 12:26:26 AM
To: <Vince.J.Kaminski@enron.com>
cc:
Subject: Title

Dear Mr. Kaminski,
?
I hope I got your title right. I looked everywhere  for it and I could not
find it. In one of the numerous discussions I had with  professor Shreve
about you I remember having heard "head of research"...  probably energy, but
that I could not recall. Is this ok? Also I would like to have the title of
the conference, it is useful!
?
Finnally, there is a request for your e-mail by a  PHD student, Do you allow
me to provide this info?
?
?
Sincerely,
?
Pierre-Philippe  Ste-Marie
--------------------------------------
pstemarie.homestead.com


FYI, please let me know if you have any comments.  Michelle

 -----Original Message-----
From: 	FMackin@aol.com@ENRON
Sent:	Thursday, October 18, 2001 12:27 PM
To:	Palmer, Lizzette; Cash, Michelle
Subject:	Re: Enron Metals North America Voluntary Separation

Lizzette and Michelle,
Attached is a discussion draft of the plan document.  Please review and send to others who need or wish to review it.  I have designed flexibility into the Plan that should serve us well in the event of design changes.
Please share your comments with me or let me know if you have any questions.
Pat

 - Enron Metals US Vol Term Plan Doc1.doc


This lunch will be rescheduled for sometime after this week.

Taffy:
Could you please find a dtae after this week that works?

Thanks

Carol


Do you want to give your tickets to someone in your group and join the
management team?  Up to you...

	Enron North America Corp.

	From:  Michael E Moscoso                           04/24/2000 07:38 AM

To: Sally Beck/HOU/ECT@ECT
cc: Patti Thompson/HOU/ECT@ECT
Subject: Astros Group Tickets for Thursday, April 27, vs. Chicago Cubs

Sally,

I already have tickets for that game.

Mike

---------------------- Forwarded by Michael E Moscoso/HOU/ECT on 04/24/2000
07:36 AM ---------------------------

	Enron North America Corp.

	From:  Sally Beck                           04/20/2000 04:52 PM

Sent by: Patti Thompson
To: Kristin Albrecht/HOU/ECT@ECT, Sheila Glover/HOU/ECT@ECT, Brenda F
Herod/HOU/ECT@ECT, Michael E Moscoso/HOU/ECT@ECT, Eugenio Perez/HOU/ECT@ECT,
Scott Pleus/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, Stephen P
Schwarz/HOU/ECT@ECT, Mary Solmonson/HOU/ECT@ECT, Sheri Thomas/HOU/ECT@ECT,
Kim Melodick/HOU/ECT@ECT, Norma Villarreal/HOU/ECT@ECT, Scott
Mills/HOU/ECT@ECT, Kevin Sweeney/HOU/ECT@ECT, Scott Earnest/HOU/ECT@ECT,
James Scribner/Corp/Enron@Enron, David Maxwell/HOU/ECT@ECT, Susan
Harrison/HOU/ECT@ECT, Steve Jackson/HOU/ECT@ECT
cc:
Subject: Astros Group Tickets for Thursday, April 27, vs. Chicago Cubs

Sally has gotten a block of tickets for next Thursday's afternoon Astros game
and hopes everyone will be able to join her.  Here are the details:

Thursday, April 27, at 3:05 PM vs. Chicago Cubs

Please email Sally & let her know if you will be able to attend.

Thanks,
Patti
x-39106


FYI.  Thanks. Lynn

 -----Original Message-----
From: 	Anderson, Gary E.
Sent:	Monday, December 17, 2001 12:21 PM
To:	Blair, Lynn
Subject:	RE: October (Forward) Positive Displacement Meter PPA Status

All of the MidAmerican corrections for October have been made with the exception of 0737181-01,0737021-01, & 0737021-02. The charts were never received form these locations. Dan Boswell has been out of the office due to his Father's death but should be back tomorrow. We'll get a handle on the other outstanding PPAs this week.
Thanks-
Gary

 -----Original Message-----
From: 	Blair, Lynn
Sent:	Tuesday, December 11, 2001 10:46 AM
To:	Anderson, Gary E.; Stern, Ellis; Barnes, Caroline
Cc:	Floyd, Jodie; Dietz, Rick; Zadow, Raetta; Corman, Shelley; Neubauer, Dave; Barker, Courtney; Semin, Frank; Blair, Lynn; January, Steve
Subject:	October (Forward) Positive Displacement Meter PPA Status

	Gary and Caroline, as of today, we have emailed a list by station (7 and/or 16 day charts) to the measurement
	group which needs to be read for PPA's to correct the daily volumes fro the following shippers:

		MidAmerican - 147 stations (It is my understanding you have already 44 of the 147)
		IES - 87 stations
		Interstate Power - 6 stations
		Wisconsin Power and Light - 11 stations

	In order for Gas Logistics to keep track of the ones that need to be corrected, we would like for Measurement to send
	us updates on the following information ASAP:

		1.  Which station numbers have or have not been corrected for October.

		2.  How many October charts have been received and how many are outstanding

		3.  Provide status of November chart information.

	Gas Logistics needs the October corrections in the system by December 19th, which is the time
	frame for the first prior period run.  This is important for us to be able to review the prior period invoices.
	As you 	find there are missing charts, if we can be of assistance in calling the field, please let us know.
	This way, the measurement group can concentrate on reading the charts.

	We appreciate your assistance and help in tracking these prior periods and helping each of us to keep focused
	to get these prior period corrections done by the next months billing.  If you have any questions, please let
	Rick or I know.  Thanks. Lynn


Thanks so much! I'll pass this along to the traders.

Kate

Stephanie Piwetz   03/29/2001 11:52 AM

To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: APS/Pinnacle West

Hello Kate,
APS and Pinnacle...We ran into a problem checking out for the end of the
month, because a few deals had Pinnacle in the system, but Bloomberg on the
bro confirm.  We had to ch them to match the broker confirms, because APS
showed the deals as APS on there side.  They are trying to segregate
companies little by little.  We have been told by Rhonda, our contract
administrator that trading under both names are legally correct, both are
under WSPP.

DeeDee from Pinnacle said all trades are with Pinnacle unless Bloomberg
trade; then cp should be APS.  DeeDee said shortly all trades will be under
Pinnacle, but did not give me a specific date.

Please let the traders know that all trades should be with Pinnacle West, and
APS that are transacted with Bloomberg.  No, we will not have problems
recognizing the old name, Rhonda says they will just be assigned over to
Pinnacle, but we will not have to revise confirms.  Hope this helps!
Thanks
Stephanie

   Kate Symes                03/29/2001 11:46 AM

To: Stephanie Piwetz/HOU/ECT@ECT
cc:
Subject: Re: APS/Pinnacle West

563906 - changed to Pinnacle West
563907 - changed to Pinnacle West
562226 - changed to APS

Regarding the last deal, Mike Driscoll talked to his broker at Bloomberg last
night and asked him to change their confirm to say Pinnacle West. The broker
said he'd check on it, but that Bloomberg hadn't switched their contract over
yet and he didn't know if they could check a deal out under the new name. So
we left it, under the impression that Bloomberg was actually in the wrong. My
question is - has APS switched over to Pinnacle West entirely, and when or if
Bloomberg starts recognizing Pinnacle as the counterparty are we going to
have problems with deals containing the old counterparty name? I'm just
trying to clarify, so I can let the traders know what to expect. Thanks for
your help.

Kate

Stephanie Piwetz   03/29/2001 07:17 AM

To: Kate Symes/PDX/ECT@ECT
cc: Evelyn Metoyer/Corp/Enron@Enron, Kimberly Allen/HOU/ECT@ECT

Subject: APS/Pinnacle West

Kate,

I just spoke to DeeDee of Pinnacle West, we verballed deals and she said all
deals should be under the Pinnacle West name unless for Bloomberg
transactions.   Please review the following

Mark Fischer
563906.01  non brokered > cp name should be Pinnacle West
563907.01  non brokered > cp name should be Pinnacle West

562226.01  Bloomberg, cp name should be Arizona Public Service.  (Evelyn
inquired about this yesterday)

Thanks for your help!
Stephanie


Yesterday the Frontera plant was idle due to economics.   We had  submitted a Resource Plan (this indicates to Ercot what we plan to generate) with zero mw's and zero premium  because the unit was offline.   In the Resource Plan,  we can  attach a premium for OOM up or down.   In the plan for yesterday we indicated that our unit was "unavailable and offline".
   The plant personel are responsible for submitting an outage schedule with Ercot - this cannot be completed by the QSE.

Ercot called yesterday and asked if we could start the unit if they needed us to.   We called Jerry Watson (with Frontera) and he relayed that this was possible.   Ercot immediately OOM'd us up 135 mw's, beginning hour ending 13,  to control congestion.   They later upped this to 185 mw's for the remainder of the day, through 2400.
I called Mark Patterson, who is our Ercot Rep.,  and I explained the situation.   I wished to know how they could OOM us if we were offline.   I also wanted to know how this would settle.

His reply is as follows:

Since we indicated verbally that we could run the plant,  that changed our status from unavailable to available.
Since we had an implied low premium (zero)  on our plant,  we were high in the OOM stack and were called upon.
We would receive only the mcp for our power because we had no premium indicated.  The mcp was low all day ( mid teens)  yesterday.
If we had been OOM'd up and could not recover our startup & gen costs,  we could dispute the bill and provide sufficient documentation to recover, at most, our costs.

We immediately revised our Resource Plan and indicated 185 mw's available  with a $50 premium.    This invoked the Protocol provisions requiring them to pay us the 18 heat rate times gas costs.
The Protocol section dealing with OOM up payments is found under section 6.8.2.2.   Please review this to understand why this applies.

This was a very educational process.    We think that in revising our Resource Plan "on the fly"  we were able to turn a bad situation into a profitable day for Frontera.

Until further notice, the following policy should be implemented:

If Frontera is offline and Ercot calls to ask about the availability.    Say the unit is NOT available.

If Frontera is scheduled to run, need to input into the Resource Plan the following premiums:

$50 premium for OOM up.
$10 premium for OOM down.

These premiums will be added to the mcp and will be used to determine our place in the merit order.
If we are OOM'd up,   the premium will require that the heat rate formula is invoked.

If we are OOM'd down,  then we should be paid the mcp + premium.

Please call me if you have questions,

J. Forney
Director,  Enron Ercot Region
713-853-7160


This appears to be OK and we should be able to sign on however please review the statement and let me know if you see a problem with our support of the PHC statement.  Sorry for the short notice and review time.  I'll not respond until noon tomorrow.  Thanks.

Glen

 -----Original Message-----
From: 	"Gregory Klatt" <gregoryklatt@earthlink.net>@ENRON
Sent:	Monday, November 19, 2001 2:46 AM
To:	Hass, Glen; Harris, Steven
Cc:	Dan Douglass
Subject:	FW: A.01-09-024  PHC Statement draft

SoCalGas is circulating a draft pre-hearing conference statement for parties to sign on to, if they wish (please see attached).  Given Transwestern's position in the BCAP, it makes sense to sign on to SoCalGas' generic PHC statement.  Please take a few moments to review the same and let me know your thoughts.  SoCalGas has asked for a response by Tuesday noon.  Thanks.
----- Original Message -----
From: Parrott, Jeff
To: gloria.ing@sce.com ;mdm8@pge.com ;burkee@cts.com ;douglass@energyattorney.com ;gregoryklatt@earthlink.net ;pjpowerlaw@aol.com ;tpeterso@energy.state.ca.us ;marcel@turn.org ;chilen@llgm.com ;tomb@srossbordenenergy.com ;Thompso! n, Vicki L. ;Winter, Rodney ;Brill, Thomas R. ;fdeleon@energy.state.ca.us ;napedersen@jonesday.com ;plg@cpuc.ca.gov ;ek@a-klaw.com ;jkarp@whitecase.com ;bkc@pge.com ;Davis, Robert E. ;kcl@cpuc.ca.gov ;weg@cpuc.ca.gov ;aclark@calpine.com ;epoole@adplaw.com ;salleyoo@dnt.com ;bradylaw@pacbell.net ;Mday@gmssr.com ;bcragg@gmssr.com
Cc: Brill, Thomas R. ; Davis, Robert E. ; Winter, Rodney ; Wright, Gillian - TP1GXW
Sent: 11/16/2001 11:14:43 AM
Subject: A.01-09-024 PHC Statement draft
To: Parties Who Participated in the A.01-09-024 (SoCalGas and SDG&E BCAP) Meet and Confer:
  Attached is a proposed PHC Statement as required by ALJ Brown in her Ruling of November 5, 2001.  Per that Ruling, this Statement must be filed within 10 days of our meeting (which by my calculation would be the 26th of November).  I would REALLY like to get it filed on the 21st if possible, before the Thanksgiving weekend.
  I tried to keep the Statement simple, while reflecting the consensus views articulated at the meeting.  I tried not to go into too much detail on the description of some of the outstanding CPUC proceedings that may affect this case, but wanted to give the judge some flavor for each proceeding.  I ask that each of you let me know by noon next Tuesday (the 20th) if you want to "sign on."  I will incorporate any non-substantive edits you may have.  For substantive edits (hopefully there will be few if any) I will do my best to incorporate.  However, let's remember that none of us want to be de-positioned by what is said in this document so argumentative statements will be ignored.  If only nonsubstantive edits are received, I will file on behalf of all participating parties without further review.  If substantive changes are made, a second review will be provided.
  I hope we can keep this from becoming an unwieldy exercise.  I ask for your cooperation and appreciate your input.  If you want to provide your individual PHC Statement, fine.  Just let me know so I can take your client's name off this one.
Thanks again.
        <<BCAP-PHC statement(v1).DOC>>
        Jeff
  Jeffrey M. Parrott
         Attorney
    Sempra Energy
  ph. (619) 699-5063
  fax (619) 699-5027
jparrott@sempra.com

--- Gregory  Klatt
--- gregoryklatt@earthlink.net

 - BCAP-PHC statement(v1).DOC


Heather,
I will be out a 1/2 day today and a full day on Friday.  Also will be out a
full day on the 9th.  I will be here the rest of the month.

D

Heather Choate
02/27/2001 04:23 PM
To: Robert Superty/HOU/ECT@ECT, Edward Terry/HOU/ECT@ECT, Rita
Wynne/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Kathryn Bussell/HOU/ECT@ECT,
Michael Eiben/HOU/ECT@ECT
cc: Mary Comello/Corp/Enron@Enron, Brandee Jackson/NA/Enron@ENRON, Kim
Weldon/Corp/Enron
Subject: Absent Days for March

Please provide me with absent days for for March.  Include only vacation,
training and business travel dates.  Doctor appointments are not necessary.
Please forward to me by Wednesday (Feb 28), if possible.

Thanks,
Heather Choate, x33278


Hi Everyone,

Below are notes on some courses/faculty that are new to the Evening MBA
Program.

E264; Hi-Tech Marketing; Gadbois
Though I haven't seen Raymond Gadbois' teaching evaluations from other
institutions, he is currently VP for Corporate Marketing at PeopleSoft.
Previous to that he worked at Oracle as Marketing Director/Applications
Division/Product Marketing Manager.  Mr. Gadbois has an MBA from UCLA, is a
triathlete, and a pilot.

E259-2; Leading Change and Leveraging Culture; Chatman
Professor Jenny Chatman has taught both the day and evening core OB courses
consistently earning above a 6.0.  Jenny has taught this elective course in
the Executive Program numerous times and, again, gets consistently high
ratings.  This course will likely be focusing on leadership skills, cases,
and a fair amount of self-assessment in the leadership area.

E296-5; European Financial Markets; Portes
Professor Richard Portes is visiting from London Business School.  He is an
expert in the European Monetary Union and will spend considerable time on
this topic.  The difference between this course and Professor Rich Lyons'
International Finance course is that this course will focus on Europe, will
be a bit more "macro", and study the institutional implications of the common
currency.  Rich Lyons' course will be focusing more on international
corporate finance relevant to multinational treasurers, CFO's, etc.

E234; Corporate Finance; Das
Professor Das is visiting from Harvard this year and is currently teaching in
the day program.  I have heard he's a great teacher and, as you might
suspect, this course will be case-based.

E-296-3; Foundations of E-Business; Tachibana
We have detailed course outlines in the office for Tachibana's course.  Ken
is a Haas MBA and has an MS in computer science and in engineer-economic
systems from Stanford University.  He is Vice President of Services of
RAINfinity, which is a startup focusing on scalability and reliability
solutions for e-commerce.

BA295; Entrepreneurship
Although this is a day course and is offered on Fridays, history indicates
that there will likely be room available for evening students if you have a
flexible enough schedule.

BA296-6; International Business and Japan; Lincoln
This course offered on Mondays from 6:00 - 8:00 pm.  Course description now
on the web.  Remember, for evening students this course can only be taken for
one unit and counts as an academic one-unit course.

Please be sure to check the course descriptions on the web for each of these
courses.

That's it!

Cheers,

Diane


Hello--Listen, wanted to make sure you received a copy of our newest publication last week, The Risk Desk. Because of the size of the files we sent out, quite a few bounced back because some corp firewalls halt emails over a certain size. Anyhow, if you didn't receive the issue, hit the reply button and type "resend Risk Desk." Responce so far has been great for those of you that received the free copy -- we think you'll agree that it's soon to become the leading "must read" publication on market, credit, price and operational risk management in the energy space.
Also, just a reminder, the charter price for a one year subscription ($199) ends soon. Let us know.
John Sodergreen
Editor-in-Chief
Scudder Publishing Group, LLC
ph: 410/923-0688
fax: 410/923-0667
johns@scudderpublishing.com
The Desk, The Risk Desk, Power Executive
The Bandwidth Desk, Energy eBusiness


pls print the first document only.  thanks. df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 02/25/2001
08:51 PM ---------------------------
From: Donna Martens/ENRON@enronXgate on 02/23/2001 07:36 PM
To: Rich Jolly/ET&S/Enron@ENRON, Arnold L
Eisenstein/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David
Roensch/ET&S/Enron@ENRON, Kevin Hyatt/ENRON@enronxgate, Randy
Rice/ENRON@enronXgate, Ray Smith/ET&S/Enron@ENRON, Lorraine
Lindberg/Enron@enronXgate, Eric Faucheaux/ET&S/Enron@Enron, Earl
Chanley/ET&S/Enron@ENRON, Roger Westbrook/ENRON@enronXgate, Cecil
Gutierrez/ET&S/Enron@ENRON, Susan Scott/ENRON@enronXgate, Mary Kay
Miller/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Keith
Petersen/ENRON@enronXgate, Ronald Matthews/ET&S/Enron@ENRON, Ben
Asante/ET&S/Enron@ENRON, Phil Lowry/OTS/Enron@ENRON, John R
Keller/OTS/Enron@Enron, Steven Harris/ET&S/Enron@ENRON, Norm
Spalding/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tim Kissner/ET&S/Enron@ENRON,
Patrick Brennan/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON, Rick Smith/ET&S/Enron@ENRON, Larry
Campbell/ET&S/Enron@ENRON
cc:

Subject: Red Rock Expansion Filing

Attached is a draft copy of Transwestern's application requesting
authorization to abandon the existing units at Stations 1, 2, 3 and 4 and
install a 38,000 HP unit at each station.  Please note that Ron will be
revising Exhibit G.   Please provide comments and the signed FERC approval
form no later than 5 P.M. on Monday, 2/26.  Thanks.  Donna


Oh my gosh!

Just found out right after I got off the phone with you that I am no longer
going to see Madonna.  We couldn't give the guy a definite yes and he had to
go ahead and sell the tickets.  Yikes.  I think I am going to kill myself.
Was it bad luck talking with you??

Ha! Ha!

Anyway, I enjoyed talking with you!  Have a good time in S. Carolina this
weekend!


Kay:

Attached is a revised draft of the LLC Agreement which has been marked to
indicate the changes from the draft distributed on Friday, April 13.  Since
the most substantive change made to the LLC Agreement reflects
NorthWestern's desire to have the LLC treated as a single member limited
liability company for tax purposes, it might be a good idea to get your tax
team to sign off on the revised draft.  Call me if you have any questions.

Regards,

Marisa

-----Original Message-----
From: Schreiber, Eileen [mailto:EileenSchreiber@paulhastings.com]
Sent: Thursday, April 19, 2001 10:34 PM
To: 'mreuter@kslaw.com'
Subject: FW: This E-mail is sent at the request of M. Kahn and J.
DeBerry

"paulhastings.com" made the following annotations on 04/19/01 23:34:07
----------------------------------------------------------------------------
--
NEW E-MAIL ADDRESSES AT PAUL, HASTINGS, JANOFSKY & WALKER LLP

We have changed our e-mail address.  Our new domain name is
paulhastings.com.  In most cases, our address is composed of
conventional first name and last name plus @paulhastings.com.  Here are
two examples: janesmith@paulhastings.com and danjones@paulhastings.com.
If you have any questions, please contact us at noc@paulhastings.com.

============================================================================
==
"The information transmitted is intended only for the person or entity
to which it is addressed and may contain confidential and/or privileged
material. Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you
received this in error, please contact the sender and delete the
material from all computers."

============================================================================
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This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
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named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

Content-Transfer-Encoding: 7bit
To:
Subject:
Date: Fri, 20 Apr 2001 10:39:47 -0400
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X-Mailer: Internet Mail Service (5.5.2653.19)
Content-Type: multipart/mixed ;
boundary="----_=_NextPart_002_01C0C9A7.0644FDC0"

 - ATT549306.txt
 - ATT549307.htm
 - LLC Agreement(v4).DOC
 - LLC Agreement(vRED).DOC


Tracy,

In response to your e-mail of 20 December, 2000,  you are correct there
should be two separate agreements between ENA and ECC.
Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


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.

Distillate     http://www.carrfut.com/research/Energy1/hoil67.pdf
Unleaded     http://www.carrfut.com/research/Energy1/unlded67.pdf


fyi

 -----Original Message-----
From: 	Chandler, Bob
Sent:	Friday, October 12, 2001 1:29 PM
To:	Peng, Gary
Cc:	Saunders, James; Zahn, Gary; Dimacali, Aurora; Lev, Jennifer; Geaccone, Tracy
Subject:	FW: TW-COGS

The attached spreadsheet shows the quarterly reclasses between O&M and COGS for Transwestern for the year 2000.  As we discussed, we are very supportive of making this 2000 reclass in order to avoid having to explain large year to year variances caused only by the re-mapping. It will also conform Enron's reporting to TW's stand-alone GAAP reporting for 2000.  Please call if you have any questions.

Thanks for helping us make this happen.

 -----Original Message-----
From: 	Joe, Allen
Sent:	Friday, October 12, 2001 11:05 AM
To:	Chandler, Bob
Cc:	Walters Jr., Harry; Dimacali, Aurora; Zahn, Gary
Subject:	TW-COGS

Per your request.  Proposed restatement of CY 2000 TW COGS to O&M


Hey Ashley:
Please give me a call at 713.853.7998, which is my work phone at Enron.  I
look forward to talking to you about Enron.
Regards,
Ben


The following file contains a graphical view of the North American Gas average deal count by Trader and Product for EOL. This information is for comparative analysis only.  Do not update links when opening this file.

If you have any questions regarding this breakout, please let me know .

Adam Johnson
EnronOnline
x54877


Here are you positions.  Have a good evening.

Robin


Please see note from Christi Nicolay below.

Ginger Dernehl
Administrative Coordinator
Global Government Affairs
Phone# 713-853-7751
Fax# 713-646-8160

 -----Original Message-----
From: 	Noske, Linda J.
Sent:	Tuesday, September 18, 2001 2:03 PM
To:	Dernehl, Ginger
Subject:	FW: Investor Relations updates

Can you forward for me?

 -----Original Message-----
From: 	Nicolay, Christi L.
Sent:	Tuesday, September 18, 2001 2:01 PM
To:	Noske, Linda J.
Subject:	Investor Relations updates

Linda -- Please forward to Gov't Affairs group.

GA folks:
Please copy David LeBoe (Investor Relations) on any summaries you do of significant regulatory events/issues (for example, major FERC orders.)  Thanks.


Tim always tells me EPMI's biggest problem about accessing transmission
with the ISO is the lack of public information.  Tim wants all ISO
information - as he says "more, better, faster."  In other words he wants:
meter and outage information, water levels, bids and schedules, actual
flows, transmission availability and congestion.

Making this information available is necessary for three reasons.  This
information would help the market to police itself and provide better price
signals producing a more efficient market.  It would remove competitive
advantages held by monopsony load servers and generators owning a large
percentage of the generation in the market.  It would also, as Sue points
out, remove the transmission availability knowledge advantage held by the
grandfathered transmission contract holders.

Susan J Mara@EES
09/08/2000 12:06 PM

To:   Steven J Kean/HOU/EES@ENRON
cc:   Jeff Dasovich/SFO/EES@EES, Mona L Petrochko/SFO/EES@EES, Tim
Belden/HOU/ECT@ECT@ENRON, Mary Hain/HOU/ECT@ECT@ENRON, Paul
Kaufman/PDX/ECT@ECT@ENRON, Richard Shapiro/HOU/EES@EES, James D
Steffes/HOU/EES@EES
Subject:  Re: ANSWERING YOUR QUESTIONS ON CA TRANSMISSION ACCESS  (Document
link: Mary Hain)

OK.  I'll take a shot in answering your questions, Steve. Others are free
to comment as well.

The transmission issues in the ISO are greatly lessened.  If you talk to
the traders, they LOVE it.  Before April1, 1998, they had no sales to CA.
Now, they have millions of dollars of sales.  Why?  -- no transmission
access to speak of before the ISO took over.

We still have some problems, however.  The problems have been there since
day one and FERC has punted on them.  We have a huge FERC case dealing with
many of them.  We also appealed a stupid FERC order on Path 15 probably at
least a year ago and have heard nothing from FERC on it. The traders have
also seriously considered a FERC complaint on Path 15.

So, what are the access issues?

Path 15 is the major constraint point between northern and southern CA.
Has been for years. The transmission fix is basically adding a third
intertie line between Tracy and Tesla. When I left PG&E in 1996, the
estimated coast was $300 million.  The congestion costs did not justify
building the line then.

PG&E continues to control Path 15 and tells the ISO what's left after PG&E
allocates the capacity and decides what the rating is and when it changes.
There is no transparency.  PG&E has the ability to use Path 15 to advantage
Diablo Canyon given the existing contracts.  Carl has looked into it
somewhat and doesn't think PG&E is, but;... The ISO says it can't interpret
PG&E's contracts with the munis and filed some funky thing with FERC about
how it's some kind of overseer -- we protested and have now appealed.  The
munis have been receiving preferential access since Day One -- their
contracts were generally subservient to the IOU rights -- more like
interruptible -- but once the ISO started, all of a sudden, the muni rights
became super firm superceding the IOU rights (as far as we can tell from
sketchy filings and discussions with ISO staff). That's why we have pushed
the issue.  Also, Dynegy and Power Exchange (not the PX) have rights on
Path 15.  Tim Belden would love to get some info on how that constaint is
being operated.

Information in general is pretty sketchy on real-time transmission.  We
have complained to the ISO about how the ISO knows what's going on in
transmission (as do the utilities), changes what it does, which then
changes prices, and then doesn't tell us until after the fact.  The ISO has
promised to do better, but I don't think has implemented any real changes
yet.

Advantageous access.

Except for what's going on in Path 15, I don't think the IOUs have any
advantages on access -- except with respect to Regulatory Must Run
resources like nuclear and hydro -- but I think it's resource specific,
rather than owner specific. The munis are another story.  See next item.

Munis Preference

This is a huge issue here and I assume across the country.  In making a
devil's bargain with the munis, the FERC has put the ISO into an untenable
situation.  The "sanctity of contracts" under any and all conditions has
created preference for incumbents (not the IOUs -- but everyone who had a
transmission contract with the IOUs) and poor rights for those poor
schlepps like us who have come into the new market.  The ISO cannot operate
the system this way and is forced to give the munis/Dynegy more than they
had originally and to let them do things no one else can do (e.g., some
munis get to change their schedule after the actrive hour begins, some get
to do it every half hour, so far most haven't had to pay for ancillary
services, etc.)

There are many, many examples of how we are discriminated against (in
addition to Path 15) and of how FERC has shined us on -- but yet we fight
on. The most recent muni giveaway is the litigation surrounding the "new"
transmission charge for CA -- into this has been entangled the rules for
munis joining the ISO.  The munis want huge handouts to join. And part of
the "new" T rate includes hundreds of millions of subsidies for munis --
I've pointed out that this amounts to the IOU's customers paying for the
munis' stranded transmission costs, when they are already paying for the
IOUs' stranded generation costs, but this argument fell on deaf ears in the
ISO.  It's really not our issue, but it does make you kind of sick about
where public policy stands in this state.

Feel free to call (415) 782-7802

Steven J Kean@ENRON
09/01/2000 07:43 AM

Sent by:  Steven J Kean@ENRON

To:   Jeff Dasovich/SFO/EES@EES, Susan J Mara/SFO/EES@EES, Mona L
Petrochko/SFO/EES@EES, Tim Belden/HOU/ECT@ECT, Mary Hain/HOU/ECT@ECT
cc:   Paul Kaufman/PDX/ECT@ECT, Richard Shapiro/HOU/EES@EES, James D
Steffes/HOU/EES@EES
Subject:

When we have described the problems and solutions for California we have
focussed on generation siting and flexibility to hedge.  We have stayed
away from transmission issues on the assumption that California, with its
ISO and PX, does not suffer from the same discrimination issues as other
parts of the country.  Is this true?  Does California's system layer in
priorities for utility use of the system -- eg doesn't PG&E control "path
15"?  Does that control provide advantageous access to PG&E?  Are there
other examples and are there links between these "preferences" and the
current problems in California?  As we are trying to convert reliability
and pricing concerns into FERC action these would be helpful arguments to
have available to us.


FYI

 -----Original Message-----
From: 	McCoppin, Dorothy
Sent:	Tuesday, November 20, 2001 8:03 PM
To:	Horton, Stanley; Ambler, John; Corman, Shelley; Craig, Rick; Gadd, Eric; Harris, Steven; Hartsoe, Joe; Hawkins, Don; Hayes, Robert; Hayslett, Rod; Hotte, Steve; Howard, Kevin A.; Keller, John R.; Kilmer III, Robert; Lowry, Phil; Martin, Jerry D.; McCarty, Danny; Miller, Mary Kay; Nelson, Mike; Neubauer, Dave; Peters, Jerry; Pribble, Dan; Saunders, James; Shafer, John; Smith, Gary; McGowan, Mike W.; Miller, Kent
Cc:	Fossum, Drew; Soldano, Louis; Raker, Colleen; Porter, Gregory J.; Crowley, Philip; Wilkie, Kim; Bargainer, David K.; Pryor, Tony; Huber, Lee; Rapp, Bill; Kyle, Candace; Melton, Richard ; Holtzman, Staci; King Jr., Frazier; Pavlou, Maria; Dornan, Dari; Talcott, Jim; Brown, William E.; Ringblom, Kathy; Taylor, Gina; Davis, Hardie
Subject:	Summary of Covenants under Merger and Loan Documents
Importance:	High

	Please see the attached memo, summarizing the various covenants contained in merger and loan documents that have
	been executed in the last two weeks.  These covenants are important, as they relate to ETSC's, TW's, and NNG's ongoing
	operations.

	--Dot


Thanks for lining this up.  I am glad that they were available on the 2nd.
--Sally

"White, Cara" <CWhite@texas.usta.com> on 02/12/2001 05:27:01 PM
To: "'sally.beck@enron.com'" <sally.beck@enron.com>, "'cwhite@viviance.com'"
<cwhite@viviance.com>
cc:
Subject: anniversary

okay, sistas - we're in at Josephine's on June 2.   They're faxing me info
on it; we can look it over and commit if we like what we see.  I'll keep you
posted.    Bye!  -cara

Cara White
Community Development Coordinator
USTA Texas Section
1-888-883-6388
cWhite@texas.usta.com


fyi
---------------------- Forwarded by Steven J Kean/NA/Enron on 04/03/2001
05:01 PM ---------------------------

Jackie Gentle@ECT
04/03/2001 12:34 PM
To: Mark Koenig/Corp/Enron@ENRON, Paula Rieker/Corp/Enron@ENRON, Steven J
Kean/NA/Enron@Enron, Karen Denne/Corp/Enron@ENRON
cc:

Subject: CATS House of Lords Appeal

Mark Palmer has asked me to send you the attached reactive holding statements
in relation to the above.  It has been signed off by everyone here except
Michael Brown and John Sherriff, but we do not expect any material changes.
The result is due mid-morning London time tomorrow and we will advise you of
the outcome as soon as possible thereafter.

If you have any queries you can reach me tonight on +44 7967 381557.  Thanks.


---------------------- Forwarded by Darron C Giron/HOU/ECT on 10/23/2000
05:40 PM ---------------------------

	Enron North America Corp.

	From:  Kyle Etter                           10/23/2000 04:46 PM

To: Christopher Coffman/Corp/Enron@Enron, Nick Hiemstra/HOU/ECT@ECT, Reagan
Mathews/Enron Communications@Enron Communications, Jeff Coates/HOU/EES@EES,
Jay Reitmeyer/HOU/ECT@ECT, Eric Moon/HOU/ECT@ECT, James Simpson/HOU/ECT@ECT,
Erin A Rice/LON/ECT@ECT, Mark Friedman/HOU/ECT@ECT, Greg Couch/HOU/ECT@ECT,
Jeffrey C Gossett/HOU/ECT@ECT, Greg Martin/HOU/ECT@ECT, Chad
Landry/HOU/ECT@ECT, Stephen Plauche/Corp/Enron@Enron, Brent A
Price/HOU/ECT@ECT, David Oliver/LON/ECT@ECT, William Kelly/HOU/ECT@ECT,
Victor Guggenheim/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT, Phillip M
Love/HOU/ECT@ECT, Darron C Giron/HOU/ECT@ECT, Scott L
PALMER/ENRON@enronxgate, David Baumbach/HOU/ECT@ECT, Susan M
Scott/HOU/ECT@ECT, Crystal Hyde/HOU/ECT@ECT, Kyle R Lilly/HOU/ECT@ECT, Dawn C
Kenne/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON, Kori Loibl/HOU/ECT@ECT,
John Griffith/Corp/Enron@Enron, Jackson Logan/HOU/ECT@ECT
cc:
Subject: Email

Here is my email address.  Email me if any of you will be in San Antonio.

kyle_etter@hotmail.com

Kyle