Rosie,

I have very patiently explained the situation to Wayne Rogers and Craven Crowell on behalf of the former Vice President.  I will call them again tomorrow, hopefully with a little more positive news and the possibility of being able to see some information some time next week.  I am sorry that Dr. Lay has been bothered by this.

Take care,
Mark

 -----Original Message-----
From: 	Fleming, Rosalee   On Behalf Of Lay, Kenneth
Sent:	Thursday, December 13, 2001 5:06 PM
To:	Metts, Mark
Subject:	FW: Wind asset

Mark, do you want to give Ken any feedback on this?

Rosie

 -----Original Message-----
From: 	Katie McGinty <KMcGinty@natsource.com>@ENRON
Sent:	Thursday, December 13, 2001 3:41 PM
To:	Lay, Kenneth
Subject:	Wind asset

Ken--

At the conclusion of our phone conversation, you indicated that I should get
back with you if we were having any difficulty in pursuing our interest in
acquiring the Enron wind business.  Knowing the many demands on your time, I
regret to have to come back to you.  However, despite repeated attempts, we
are still locked out of negotiations over the wind asset and have been
unable to receive information we've requested.  Our phone calls have been
returned, but information and/or a seat at the table have not been
forthcoming.

Can we discuss this again by pbone?  Alternatively, as I suggested in a note
to you on Monday, we stand ready at any moment to come visit you in person
about this if you might have even 15 minutes for us.

Again, apologies for coming back to you about this.  But, it would be
extremely helpful if you could assist us in being able to move forward on
our interest in bidding on this business.

Many thanks!
Katie McGinty
==========
Kathleen A. McGinty
Vice President, Asset Management
Natsource, LLC
1120 19th Street, NW
Suite 730
Washington, DC 20036
O: 202-496-1423 x229
E: kmcginty@natsource.com

In a note to you on Monday, I expressed a desire to speak to you about  so
that we can puwe were failing to get from Enron information on the wind
asset and/or if we were failing to get in to the negotiations that we
understand to be underway regarding the sale of this asset.
In my earlier note to you I was inquiring about the possiblitiy that the
wind asset would be auctioned.  I want to expandbe clear here and reiterate
our intentions:  while we believe that an open-ended auction would be
unnecessarily costly and inefficient for Enron and for potential bidders,
our overriding interest is in being able to bid on Enron wind, period.  I am
contacting you again as you suggested in our phone conversation since we
have, to date, been unable to get information on the asset and we have been
unsuccessful in getting the negotiations (that we understand might already
be underway on thisAs we discussed by phone, I have a group of investors
ready to do this deal.  Following our conversation, my partners have had
several phone conversations with Mr. Metts, reiterating our interest in the
asset (that they had expressed to him in a meeting on November 14), and
asking for information so that we could prepare a bid.  To date, we have not
received any information and we've been unable to Currently, despite our
repeated expressions of interest in this asset, that we discussed by phone
on November 30th, and that my colleagues discussed with Mr. Metts in a
meeting on November 14th and in several follow-up phone conversations, we to
date have not been given access to  toWe really would appreciate the
opportunity to speak to you about this situation.  nyour apparent decision
to


Rob,

John is currently evaluating the current HR list for Commercial Managers,
Directors and VP's that are eligible for bonus.

Please review the list below of these commercial employees that report up to
you, directly or indirectly, and let him know if you see any discrepancies.

Your prompt response would be appreciated.

Thank you,

Kim
x30681

Derek Davies  Director
Barry Tycholiz  Director
Paul Devries  Director
Jeff Borg  Director
Eric Le Dain  Director
Cyntia Di Stefano Manager
Kyle Kitagawa  VP
Duncan Croasdale Manager
William Greenizan Manager
Dean Drodziak  Manager
Howard Sangwine Manager
Garrett Tripp  Manager
Jan Wilson  Manager


-----Original Message-----
From: 	"Cherry, Beth" <Beth.Cherry@enform.com>@ENRON
Sent:	Thursday, October 25, 2001 12:36 PM
To:	Cherry, Michael
Cc:	Wolfe, Jason
Subject:	RE: Dinner?

http://www.theonion.com/onion3738/privileged_children.html


Holden, thanks for accepting our invitation to the Albuquerque International Balloon Fiesta!  You'll have a great time.

As promised, I am enclosing additional information on making your trip here October 7-9, 2001.  I will also be needing some information from you.

1.  Please email me, call me or fill out the attached form and fax it back to me with your travel information as soon as you know it, so we can arrange times to meet you at the airport.

2.  In October, Albuquerque can be very cool.  Please bring a light jacket and/or sweater, and some warm clothes, as many of the events we will be hosting are outside.

3.  You will be lodging in a Class a RV on site at the Balloon Fiesta, with one of our other guests.  There will be 3 RV's that we have secured for our guests (6 guests in all), and these RV's will be parked in our own reserved area of the Balloon Fiesta.  This way, there will be no "early rising" to attend balloon events, as some of the start times for ascension events are 5:45AM - 7:00 AM!  And you will be in midst of all of the excitement.  These RV's are top of the line: roomy, comfortable, and well-stocked with all the necessities (snacks, drinks, toiletries, sheets, blankets, towels).

4.  All meals will be hosted by us, either at local restaurants or they will be professionally catered to our area.

We will also host an outing to Santa Fe; sightseeing and museums, or you can play golf instead (please indicate in your reply if you will be renting clubs or bringing your own).    We would also like to treat you to a balloon ride (weather permitting) if you are so inclined.  Just please note it on the attached sheet.

And last but not least, we would like you to provide us with your sweatshirt size so we can send you home with an official Balloon Fiesta sweatshirt.

I have attached to this email a form that you can either fill out and fax back to me or use it as a guide to answer all the questions that I am requesting through email.  Of course, you can still call me at 505/855-6202.  If you plan to fax this information to me, the number is 505/855-6240.

<<RSVP Form.doc>>

All of us at PNM's Wholesale Power Marketing are thrilled that you are coming!  If you have any questions, please feel free to call me.

Regards,

Sandy Stephens
Assistant to Duane Farmer
505/855-6202 direst line
505/855-6240 fax


See Attached


----- Forwarded by Jeff Dasovich/NA/Enron on 01/22/2001 06:21 PM -----

	Richard Shapiro
	01/22/2001 05:29 PM

		 To: James D Steffes/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Jeff
Dasovich/NA/Enron@Enron
		 cc:
		 Subject: California Integrated Supply / Demand Management Program

Thoughts?
---------------------- Forwarded by Richard Shapiro/NA/Enron on 01/22/2001
05:29 PM ---------------------------

Dan Leff@EES
01/22/2001 04:12 PM
To: Richard Shapiro/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron
cc:

Subject: California Integrated Supply / Demand Management Program

Rick / Steve -

Please check this out and provide some comments.

It currently does not contain a "market price".  That is being assembled now.

Please also let me know when you would like to get this to the CA Governor's
office.

Thank you - Dan


Richard--

We were intrigued by the news of the cases against the generators and
marketers in California.? Can we be of any help to Enron??

Regards,

Ed Feo

________________________________
Edwin F. Feo
Milbank, Tweed, Hadley & McCloy LLP
601 South Figueroa Street, 30th Floor
Los Angeles, CA? 90017
efeo@milbank.com
http://www.milbank.com
(213) 892-4417 - Direct Dial
(213) 892-4717 - Direct Fax
(213) 629-5063 - General Fax
(213) 446-3206 or (310) 968-0670 - Mobile

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


Per our conversation, it appears that the two companies are going to merge in
October?  Looking at Lotus Notes, I don't think we could pick two bigger dogs
of masters to have in place.  I don't think we want either master to be the
survivor master.  With Chase we have an old 1987 Interest Rate and Currency
Exchange Agreement and with Morgan we have a Master Energy Price Swap
Agreement.  Yuk, yuk.  If I had my druthers I say, LET'S START OVER.  I know
it's far reaching, but maybe we could make it our goal to have this master
replaced by October.  Do you think that's do-able?  Do we have a contact at
Chase/Morgan we can start dealing with?  I'm going to add chase to the
Legal/Credit list just as a tickler for us to get this thing rolling.


Attached is an updated list of questions after everyone's input.  I would like to discuss the changes
	with you after Shelley's staff meeting.  Appreciate everyone's input.

	Thanks. Lynn


----- Forwarded by Richard B Sanders/HOU/ECT on 07/12/2000 04:25 PM -----

	Mitch Robinson@ENRON
	07/10/2000 01:06 PM

		 To: Stuart Zisman/HOU/ECT@ECT
		 cc: Richard B Sanders/HOU/ECT@ECT, Eric Thode/Corp/Enron@ENRON, Tom
Callaghan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: Vibration Complaints at Gleason

Stuart -

Fyi.  Talked to Pete a few minutes ago.  We filed a warranty claim with
Westinghouse.  We will be running all units tomorrow, and we'll have a
Westinghouse engineer there to work on the problem.  Pete has since called
all the people below back to explain what we are doing to verify whether
there is a problem or not.

Mitch
---------------------- Forwarded by Mitch Robinson/Corp/Enron on 07/10/2000
01:02 PM ---------------------------

Pete McCormick@ENRON_DEVELOPMENT
07/10/2000 12:36 PM
To: Tom Callaghan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mitch Robinson@Enron
cc:

Subject: Vibration Complaints at Gleason

Well, it continues. We have received 5 complaints from the vibrations
resulting from operation of Units #1 and #2. I have personally been to each
individuals residence since this morning to monitor for the vibrations and to
listen to the individuals. In all, every person just feels a little
frustrated by the problem, I have not ran across anyone that has been
unfriendly. Below I will list the individual complaints and my findings
visiting their residence.

Karen Ellis - Most likely the cause of most of the complaints, they are the
closest to the facility and have the most vibration from the units. While I
was at their residence I could feel the windows rattle, and at some points
feel the walls vibrate. There is a definite vibration present at this
residence.

Mr & Mrs. King - They called and complained but were unavailable to visit
their residence, they live in the same vacinity as Karen Ellis.

Lynda Stout - Very next house after Karen Ellis, stopped and visited with her
and Richard Black this morning, they are complaining about the vibrations but
while I was there I could not determine if there were any vibrations
occuring. Cannot eliminate the possibility.

Richard Black - Same as above, he seems like he may cause a little bit of
trouble. While I was visiting he said that he has rental property (the
trailer park) that he could not rent due to the vibrations. I could not
determine if Vibrations were present or not.

Clint Fuqua (something like that) - Lives in the OPPOSITE DIRECTION from all
other complaints. He stopped by this morning to complain (and pick up his
dog). I went to his house and visited, could not feel vibrations from his
residence, I believe if the wind direction were to change he would experience
some noise and vibration.

In all, everyone is just wanting to know if this will be permanent or just
temporary. I have explained to everyone that this will be temporary till we
can obtain the proper information to find a solution. The vibrations seem to
be getting worse as we run, I believe that Westinghouse has a problem in the
exhaust transition that they need to investigate.

I spoke with Curt Smith this morning and expressed the severity of this
problem and recommended that they get someone up here tomorrow, we are trying
to environmental testing out here tomorrow, I should know this afternoon if
this is possible.

We are also experienceing cracking in the exhaust area on the units,
Westinhouse is investigating as we speak. I believe they are associated.

Will keep you updated on the testing. Weare going to dispatch tomorrow, thats
why I want to get everyone out here if possible.

Peter


---------------------- Forwarded by John J Lavorato/Corp/Enron on 08/03/2000
07:30 AM ---------------------------

	From:  Chris Williams @ ECT                           08/01/2000 01:13 PM

To: John J Lavorato/Corp/Enron@Enron
cc: Kim Melodick/HOU/ECT@ECT

Subject: Mark H. Slaughter information

John,
  In an attempt to keep you informed, Gary Hickerson is bringing in a
gentleman by the name of Mark Slaughter to work on his desk in an
Agribusiness Consultant role.  Mark will be on contract for a 6 month period
and may be brought on full time pending his success.  His rate of pay is
equivalent to $80k annually.  If  Enron breaks the contract within three
months Mark will be paid a breakage fee of 20k.  If contract is broken after
three months Mark will be paid the amount remaining under his agreement.   If
Mark is hired full time during this contract there will be no associated fee
involved.
Feel free to contact me if there are any questions

Chris Williams
ENA Staffing
x39866


When: Tuesday, July 24, 2001 1:00 PM-1:30 PM (GMT-06:00) Central Time (US & Canada).
Where: EB2378 (Georgeann's office)

*~*~*~*~*~*~*~*~*~*


fyi

-----Original Message-----
From: Hedy Govenar [mailto:hgovenar@govadv.com]
Sent: Monday, August 20, 2001 3:35 PM
To: Kaufman, Paul; Sue Mara; Rick Shaprio; Bev Hansen; Jeff Dasovich;
Karen Denne; Steffes, James D.; Scott Govenar; Ken Smith; Mike Day;
Mcdonald, Michael; Alan Comnes; Kean, Steven J.; Kingerski, Harry;
Lawner, Leslie; Robert Frank; Guerrero, Janel; Buster, Miyung; Thome,
Jennifer; Eric Letke; Schoen, Mary
Subject: Chamber update

I spoke to Allan Zaremberg, Pres. of the Cal. Chamber of Commerce.  He
met with the Governor's folks and spoke to Loretta Lynch last week to
discuss undercollection strategies, the MOU, and direct access.  He is
not optimistic that any of these issues will be resolved to the
Chamber's satisfaction.  The Gov's folks truly believe that the
successful bond issuance depends upon an end to direct access.  Even if
Bowen gets cooperation on her legislation,  Allan believes she doesn't
really want to do it and is not sure she can get a signature.  I told
him that Burton said he would sign off on a direct access bill if Bowen
agrees to it.  That gave him little encouragement because he doesn't see
much motivation for Bowen to press on the Governor and Angelides.
Allan's view corresponds with everyone we've spoken to whobelieve that
nothing major will happen legislatively.  A subsequent conversation with
Hertzberg's office confirms that they feel unable to move an energy
agenda at this time, although they have not given up.


Ken:

Just a brief note to tell you that I have enjoyed our working relationship for the past 16 1/2 years, and to wish you good luck in the future.  Tell Linda I said hello.

December 14 is scheduled to be my last day here.

Sincerely,

Michael Hicks
Manager, Corporate Security
713-853-6198


Hello,

Per my conversation with Doug, I would like to confirm the following credit
approvals.

-  Cross Timbers Energy Services, Inc  has been rejected by credit, but has
been approved for "view" access only.

-  Tenaska Marketing Ventures has been approved by credit.

Please reply to confirm, and I will process accordingly.

Thank you,
Andrea
Product Control Group - CL
x54420


You're correct, I am saddened to see such a great x-Philly treated so
poorly.  I often look back
with wonder at how much ground Stocker would cover at the shortstop position,
not to mention
his tremendous power for a man of such small stature.  He could only be
compared to x-Philly
and future hall of famer - Ivan DeJesus.  The only uncertainty is whether or
not Ivan will elect
to be inducted under the Philly or Cubs uniform.

On the house front,  we purchased one and moved in at the beginning of May.
It's a fixer-upper.
All our weekends are spent working on it.

I gotta run, but thanks for the email.  Let me know how everything is going
in your world.  Tell
Rina and the kids we said hi.

Kevin


Richard Shapiro
	02/21/2001 04:50 PM

		 To: Ginger Dernehl/NA/Enron@Enron
		 cc:
		 Subject: California

Please distribute to entire group - recent talking points and proposals re:
California .
---------------------- Forwarded by Richard Shapiro/NA/Enron on 02/21/2001
04:48 PM ---------------------------
From: Jeff Dasovich on 02/16/2001 08:49 AM
Sent by: Jeff Dasovich
To: Sandra McCubbin/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON,
MDay@GMSSR.com, Hedy Govenar <hgovenar@mail.acom2.com> @ ENRON, Scott Govenar
<sgovenar@govadv.com>, Paul Kaufman/PDX/ECT@ECT, James D
Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, skean@enron.com, mpalmer@enron.com, Karen
Denne/Corp/Enron@ENRON, BTC <BCragg@GMSSR.com>
cc:

Subject: Ken Lay's email to Sen. Brulte

Greetings All:

First, I am apologizing in advance for any typos in this email.  Schedule is
very tight, but I wanted to make sure that everyone had it first thing this
morning, with some back-up info that I've included below.

Attached is the email that was sent to Ken Lay's office yesterday evening for
delivery to Sen. Brulte.  It's of course confidential.  Few points:

I don't have Bev's email, so if you could please forward to her, that would
be appreciated.
As we discussed (Jim, Mike, Bev, Scott, Hedy) on our lengthy call on
Wednesday, I'm assuming that the plan is still to "wallpaper" Sacramento with
our proposed legislation.
This email does not contain the legislation.  Mike sent the "final" versions
of our legislation out yesterday, except for the siting piece, which I
believe Brian Cragg of Mike's office is finalizing today.
You'll note that we promise Senator Brulte in the email that we'll deliver to
his office today the proposed legislation.  Again, based on our call on
Wednesday, I'm assuming that we would simultaneously release the proposed
legislation to the rest of the world at the same time.
When we spoke on Wednesday, we decided that the Sacramento team would
determine to whom we would circulate the proposed legislation at the same
time that we deliver the Senator Brulte. I'm assuming that you folks will
handle that end of things.  Please let us know at your convenience to whom
you've decided to circulate.
This email does, however, include a "summary" of our proposed legislation.
But I'm not certain that the summary included in this email is the
appropriate language to distribute "to the world," or if we'll need instead
to tailor some new language.  I think we all agreed that we need a "one
pager" to accompany the legislative package so that we can communicate the
package effectively.
We also discussed the need to quickly develop a coalition to support our
proposals.  We didn't finalize that plan.  Perhaps the Sacramento team could
propose a plan to do that.  Perhaps we could start with our friends in the
Direct Access coalition?
We also talked about the need at this point to engage in PR and to get the PR
machinery activated, also with the goal of effectively communicating our
legislative package/message.  We're in a meeting with folks today where we
can discuss getting that side of things going and Karen Denne has contacted
Marathon and they're pondering some things that we can do in the near term.
You'll note that there's a considerable amount of information about the DWR
credit issue.  As I recollect, we discussed the issue in depth on the call.
You note that attached to the email is a "legislative fix" to AB1X that could
solve the credit issue and an attached set of "taking points" related to a
second alternative to solving the credit issue:  a PUC order clarifying that
DWR will get its money for power purchase costs.
Note also that Steve Kean reminded me that we've got to continue to push to
get the utilities out of the merchant function.  Accordingly, I've put a
brief paragraph on that issue in the note to Brulte in the last section
(legislative solution) under the topic "create a real competitive retail
market in California."  To the best of my knowledge, we don't have
legislative language on that piece yet, and it seems that we'll need to
discuss it in considerably more depth before doing so.

If you have any questions about any of the materials in the email, please
don't hesitate to contact me or Jim or Sandi to discuss.  I can be best
reached to day by pager at 888.916.7184.

Thanks to all for helping pull this together.

Best,
Jeff

----- Forwarded by Jeff Dasovich/NA/Enron on 02/16/2001 08:27 AM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	02/15/2001 06:11 PM

		 To: jdasovic@enron.com, skean@enron.com, Richard Shapiro/NA/Enron@Enron,
James D Steffes/NA/Enron@Enron
		 cc:
		 Subject:

Steve:
Here's a substantially more cleaned-version, with attachments.  There's a
hard copy on your chair.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 02/15/2001 05:57 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	02/15/2001 05:56 PM

		 To: jdasovic@enron.com
		 cc:
		 Subject:

Jim:
It was a pleasure speaking with you yesterday.  Based on our conversation,
this email includes the following:

An Enron contact to discuss developing small-scale generation on Tribal lands.

Our views on the impediments to distributed generation and suggestions on how
to remove those impediments.

A description of the credit issues that continue to impede DWR,s ability to
sign contracts with power suppliers, and options to resolve them. Two
possible options for addressing the credit issue are 1) a California PUC
order clarifying that DWR will recover its power purchase costs through
rates, and 2) an amendment to AB1X designed to accomplish the same goal.  I
have attached talking points regarding the California PUC order and proposed
amendments to AB1X.  We believe that an amendment to AB1X is the preferable
option.

Our assessment of the supply/demand picture in California.

Our suggestions for a legislative package designed to solve both the near-
and long-term electricity crisis in California.  We will deliver to your
office tomorrow detailed legislative language.  In those materials we will
also identify existing bills that we believe can easily accommodate our
proposed language.

I hope that the information is useful.  Please do not hesitate to contact me
if you would like to discuss these materials further, or if there is anything
else that I can do to assist you.

Regards,
Ken

Contact Information to Discuss Interest Expressed by Native American Tribes
in Installing Small-scale Generation on Tribal Lands

David Parquet, Vice-President
Enron North America
101 California Street, Suite 1950
San Francisco, CA 94111
Phone: 415.782.7820
Fax: 415.782.7851

2. Key Barriers to Distributed Generation

Excessive and Unnecessary Utility Stand-by Charges

Solution: The executive orders issued by the Governor on February 14th took a
step in the right direction.  Utility stand-by charges have always been
designed by the utilities to protect their monopoly position, extract
monopoly prices from customers, or both.  But there is no reason to limit the
elimination of these charges to generation facilities that are less than
1MW.  These limits will only lengthen unnecessarily the time it takes for
California to close the significant gap between supply and demand and reduce
the risk of black outs this summer.  We would propose lifting the cap by
offering amendments to SB27X, which is designed to facilitate development of
distributed generation.

Excessive delays and costs related to interconnecting facilities with
investor-owned and municipal utilities

Solution:   The Governor,s executive order regarding interconnection is a
step in the right direction*D-D-26-01 requires utilities to complete
interconnection studies within 7 days.  California should ensure that this
requirement applies to all generation facilities, including distributed
generation.  In addition, the financial conflicts the utilities face when
interconnecting generation facilities are simply too powerful to overcome
through executive orders or other regulations.  To the greatest extent
possible, California should shift control over interconnection away from the
utility and place that control with the California ISO.  This could be
accomplished through amendments to SB 27X.

Permitting and Air Quality Issues
Developers of distributed (i.e., &on-site8) generation that is 50 MWs or
greater must receive certification from the California Energy Commission and
therefore face all of the impediments to development that large-scale
generation faces.

Solution: California should ensure that the executive orders (D-22-01 thru
D-26-01) issued by the Governor to expedite plant siting and maximize plant
output apply equally to smaller scale, &distributed generation8 facilities.
In addition, distributed generation that is less than 50 MWs continues to
face local opposition.  The State should ensure that local, parochial
interests cannot block otherwise beneficial distributed generation projects.
These objectives could be accomplished through amendments to SB27X.

3. Credit Concerns Regarding Authority Granted to DWR in AB1X to Purchase
Electricity on Behalf of the Utilities

Enron responded to the RFP issued by DWR to enter into power contracts with
suppliers.
Enron is in active discussions with DWR to establish contract terms with the
goal of entering into a power purchase agreement as soon as possible.
However, ambiguities contained in AB1X have created significant credit risk
concerns that need to be resolved in order to finalize contract terms.
We understand that the lion,s share of counterparties share Enron,s credit
risk concerns.
Enron has proposed several options for resolving the credit risk issues and
is working with DWR to arrive at a solution that is mutually agreeable to
both sides and that might serve as a template for power purchase agreements
going forward.

Summary of the Source of the Credit Risk Issue

Ambiguous Ratemaking Authority
The language in AB1X is ambiguous as to whether DWR has any authority to
charge California ratepayers for the costs of purchasing power.  From our
analysis of the bill, the language in AB1X appears to leave intact the
California PUC,s exclusive jurisdiction over ratemaking in California.  As
such, suppliers have no assurance that the PUC will agree to include in rates
adequate charges to cover DWR,s costs of power purchases.

Ambiguous Regulatory Authority Regarding Contract &Prudence8
The language in AB1X leaves open the possibility that the California Public
Utilities Commission could determine that power purchases made by DWR are
&imprudent.8  On the basis of such a finding, the CPUC could then refuse to
allow DWR to collect from ratepayers the costs associated with its power
purchases.  Consequently, suppliers have no assurance that the PUC will agree
to include in rates the charges to cover the costs of power contracts that
DWR has entered into with suppliers.

Ambiguous Language Regarding the Ratemaking Mechanism that Will Be Used to
Recover DWR,s Costs of Power Purchases
In addition to the ambiguity regarding ratemaking and regulatory authority
noted above, the language in the bill is equally ambiguous with respect to
the specific ratemaking &mechanics8 that AB1X directs the PUC to employ to
permit DWR to recover its power purchase costs. Based on our analysis, it is
extremely difficult to determine how the PUC would design the rates to ensure
DWR recovers its power purchase costs.  Moreover, as currently drafted, it is
difficult to determine whether AB1X would even permit the PUC to include in
rates all of the charges necessary to fully recover DWR,s power purchase
costs.  Again, this ambiguity raises significant credit risk concerns since
suppliers have little assurance that DWR will have the ability to recover
from ratepayers the costs of purchasing power.

Options to Resolve Concerns Regarding Credit Risk

We have been working diligently with DWR officials to resolve the credit risk
issues.  We have identified three options:

Amend AB1X
The amendments, which are attached to this email, would clarify that a) the
PUC would accept as &prudent and reasonable8 all purchase costs incurred by
DWR, and b) the PUC is obligated to include in rates the charges necessary to
ensure that DWR fully recovers its costs of power purchases.  This is the
preferred option, though we understand that the there may be some political
challenges standing in the way of amending AB1X.  (See attached file
entitled, &AmendAB1X.doc8.)

Clarify the Ambiguities in AB1X through an Order Issued by the PUC, and
through Contract Language
This is the option that we are currently working with DWR officials to
implement.  However, it is more complicated and could take significantly more
time to implement than the "legislative" fix.  We have attached electronic
copies of the talking points related to the order that the California PUC
would need to issue under this option.  (See attached file entitled,
&cpuctalkingpoints.doc.8)

Make Use of Other Instruments Designed to Address Credit Risk
As indicated in our letter responding to DWR,s RFP, we are willing to accept
other forms of credit from DWR.  Those options include a letter of credit,
cash prepayment, or an acceptable form of collateral.  DWR officials have
indicated to us that DWR prefers to pursue the second options. That is, DWR
prefers to clarify the ambiguities in AB1X through a PUC order and through
contract amendments.

4. California,s Supply-demand Picture Heading into Summer 2001

Both the California Energy Commission and Cambridge Energy Research
Associates (CERA), a private sector energy think tank, have issued reports
showing that California faces a severe supply-demand imbalance.  They differ
only on how much and how soon additional supply will be made available.  All
credible sources agree that supply will be very tight throughout the Summer
of 2001 and that unless a solution is found immediately, blackouts are
likely.

CEC and CERA both forecast that California will be short of supply this
summer by approximately 5,000 MW.   These numbers are in line with our
estimates.  California,s supply base currently has a 6% capacity margin, well
below the average 15-20%, which is recommended for reliable system operation
in the West.  Since the West relies more heavily upon hydroelectric power
than other regions, reserves are particularly important, owing to the
unpredictability of the weather and the dry year the West has experienced to
date. In the event of a low rain and snow period, the system must possess the
flexibility to respond to the reduced availability of power supply.
California,s very low reserve margin makes it especially susceptible to this
requirement.

Other reasons for reduced supply for the Summer of 2001 include the early
draw-down of reservoirs in the continual effort to manage California's severe
supply-demand gap; emissions restrictions on existing plants; and a reduced
number of customers who can be curtailed under their contracts with the
utilities.  Cambridge Energy Research Associates asserts that at the current
pace of siting, permitting and construction, adequate supplies will not be
added to correct the market imbalance until 2003 at the earliest.

CERA predicts that California is likely to face approximately 20 hours of
rolling black outs this summer.  The CEC paints a considerably more
optimistic scenario, betting that California will bring an additional 5,000
MWs on line to meet peaking summer demand.  It is our view that California
should view the CEC's "rosy scenario" with considerable skepticism.

5. Suggested Package of Legislative Proposals Designed to Solve California,s
Electricity Crisis

This email offers an overview of our proposed legislative solution.  We will
deliver to your office tomorrow specific legislative language and existing
bills that we believe can accommodate our proposals.

As we have suggested throughout the crisis, any solution to California's
crisis must focus on four issues:

Increase supply
Decrease demand
Establish a truly competitive retail electricity market
Return California,s Investor-owned utilities to solvency

Increase supply--Legislative vehicle: SB28X (Sher)
To site and construct a power plant in Texas takes approximately 2 years.
Enron and others have completed the entire process in other states in less
than a year.  In California, it takes about six years, or longer.

The Governor,s executive orders and Senator Sher,s siting reform legislation
are steps in the right direction.  Our suggested amendments can improve those
efforts by further addressing the difficulties that project developers face
in securing air emission reduction credits to meet the air permit
requirements included in the CEC's certification requirements.  Enron,s
proposal seeks to streamline the process for 1) obtaining credits and 2)
transfering credits between air districts.  In addition, it creates an
innovative emissions reduction bank to allow project sponsors to fund
emissions in advance of obtaining certification, and permits the affected air
districts to use those funds to finance projects that will produce the
required reductions in pollution emissions.

Decrease demand*Legislative Vehicle:   AB31X (Wright)
Because of the delay in getting a solution in place in California, closing
the supply-demand gap through energy conservation and efficiency offers the
best chance of avoiding blackouts this summer.  This can be accomplished most
effectively and quickly in two ways:

Buy-down demand
California is tapping into an enormous amount of money from the General Fund
to finance DWR,s power purchases.  California could likely reduce demand more
economically by running an auction to determine the payments businesses would
be willing to receive to reduce their demand for a sustained period (e.g.,
through the summer months).  DWR could easily run an on-line auction to
determine the price it could pay for these demand reductions.  To
participate, businesses would be required to have the metering equipment
necessary to monitor and verify that they are actually achieving the
reductions.  Enron has developed an on-line auction software package, &Deal
Bench,8 that it would be willing to contribute to the effort.

Use Price Signals to Incent Voluntary Curtailment
To be successful, customers need access to the following key elements:

An internet based hour-ahead price posting system to track the market price
for hour-ahead power in real time.
Real-time metering systems for baseline demand and voluntarily curtailment
verification.
Settlement process that allows for market clearing prices of energy to be
paid for load reduction (&Negawatts8).

The potential benefits of an effective demand response program would include:

&creation8 of additional summer peaking capacity in California, particularly
in the short term, without requiring construction of additional generation
resources.
reduction of  peak or super-peak load on the over-stressed California
electric system, thus potentially reducing the overall cost of electricity in
the state.
fostering of demand elasticity without subjecting customers to the full risk
of hourly market price volatility by passing market price signals to
customers and allowing them to voluntarily shed load and be compensated for
responding.

We estimate that we could generate a summer 2001 on-peak demand response in
excess of 400 MW during certain high cost hours, and a demand response for
summer 2002 on-peak hours that could exceed 1000 MW.  We further estimate
that the market response to this program from all ESPs could be 2 to 3 times
that amount.  We recommend that the State of California provide rebates
directly to customers to fund the installation of advanced metering and
control systems that would support load curtailment implementation.

Establish a truly competitive retail electricity market*Legislative vehicle:
SB27X
The only customers who were protected from price volatility in San Diego were
customers who chose Direct Access and signed fixed price deals with energy
service providers.  Ironically, AB1X takes that important option away from
customers and businesses.  It is critical that AB1X be amended to remove the
prohibition against Direct Access.

Enron's legislative proposal would give customers freedom to enter into a
direct access transaction, while simultaneously addressing the Department of
Water Resources' concerns about stranded power costs that might result from
customer migration.

In addition, California will only achieve a competitive retail market when
the utility is removed completely from the procurement function.  Procurement
is not a utility core competency, as evidenced by the dire financial
condition in which the utilities now find themselves.  California should
therefore begin immediately to phase the utility out of the procurement
function entirely, with the goal of having all customers served by a
non-utility provider within 36 months.  To execute the transition, California
should hold a series of competitive solicitations over the 36-month period in
which competing service providers would bid for the right to serve segments
of utility load.

Return California,s Investor-owned utilities to solvency*Legislative vehicle:
AB18X
Utility bankruptcy will not increase supply and it will not decrease demand.
In short, bankruptcy does nothing to solve California,s supply-demand
imbalance.  In addition, bankruptcy increases the likelihood that consumers
and businesses will bear the significant financial risks of having California
State government assume the role of &electricity buyer8 for an extended
period of time.  Finally, bankruptcy will undermine both investor confidence
in California's energy markets and the private sector's willingness to
participate in that market.

California can return the utilities to financial solvency by implementing a
series of staged rate increases.  California should design those rate
increases with the dual goal of returning the utilities to solvency without
&shocking8 the economy or household budgets For example, California could
amortize the recovery of the utilities, past debt over a 5-10 year period.
In addition, the magnitude of the rate increase can be reduced in two ways:
First, the utilities could absorb some portion of their existing debt in
recognition of the risk they accepted when they agreed to the structure of AB
1890.  Second, California can &net8 the revenues the utilities have received
from selling electricity into the Power Exchange against the debts they have
accrued due to the retail price cap.


Sam,

My column

Vince


Re internal review process - we are also tracking down Jim Sutherland with
respect to certain QA, testing and inspection issues that he has apparently
addressed with GE on other projects and as they relate to the standard
contract.

	John Schwartzenburg
	05/15/2001 09:03 AM

		 To: Sheila Tweed/HOU/ECT@ECT
		 cc: John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Scott
Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: Re: GE- Standard Domestic Contract- Need your help

Thanks, Sheila. Let's talk about  the approval of the form when we meet later
today.

JWVS

	Sheila Tweed@ECT
	05/15/2001 08:08 AM

		 To: John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: John Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: Re: GE- Standard Domestic Contract- Need your help

Thank you for pushing this through the various groups that we need for
sign-off.  I suggest that once we have closure with tax and insurance, that
we run the "final" draft past Lisa Bills, Joe Deffner and Cris Sherman.  I
think that will have completed the internal review process.  Do you agree?

	John G Rigby@ENRON_DEVELOPMENT
	05/15/2001 05:33 AM

		 To: Matthew F Gockerman/HOU/ECT@ECT
		 cc: Scott Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sheila
Tweed/HOU/ECT@ECT
		 Subject: GE- Standard Domestic Contract- Need your help

Matt

As you may know Sheila Tweed has been championing the effort to reach a
standardized purchase contract with GE for domestic applications.  Attached
is the current draft of the document.

GE suggested that we have you discuss Section 5.2. with GE's tax
representative  (David  Spradlin).   Please review Section 5.2.   GE's
commercial person will be in London with Scott Dieball and I on Wednesday,
Thursday and Friday.   Please let me know by voicemail  (713-646-6138) which
of your mornings if best to get on a conference call with the GE rep. (Scott
and I can be reached today at (44-207-783-0517).   I think it makes sense for
Steve Swift of GE, Scott Dieball and me to listen in.  At this point I do not
think that the language is in debate, but GE and Enron want to make sure it
is correct before making it our default standard.


Attached is a draft DASH with signficant changes from Friday afternoon.  Please provide thoughts and comments back to me over the weekend or by Monday a.m. in order to facilitate potential circulation of a final DASH by Monday p.m.

Also attached is the most current Legal Risk Memorandum and RAC Due Diligence Report & Assessment Summary.

Given that I will be accessing e-mail over the weekend, responses by e-mail are preferred.  Thanks.

Regards,

Chip Schneider
713-853-1789
3AC 1418


You are my hero.

Kay


This is a very good, easily digestible summary of the FERC order.  Alan
Zaremberg, CEO of the Chamber and located in Sacramento, asked if we had a
summary that we could provide him.  Zaremberg is convinced that no one in
California understands what FERC did and wanted to try to educate them.  If
we sanitize it to remove anything sensitive, are folks comfortable providing
it to Zaremberg?  Thanks.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 05/10/2001 01:45 PM -----

	Tom Briggs
	05/09/2001 03:30 PM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: FERC summary


Taffy:
Sara and i need about thirty minutes with Mark.  Can you set something up for
either tomorrow or before our group meeting on Wednesday?  Today is bad for
me.  Thanks.
Carol


Hey Dexter,

Here are your numbers!  Have a great weekend!


Mark,

I left you a message regarding The National Forum on Corporate Finance
at  Rice.

They would be delighted if you could serve as a panel  member
at this conference.

Here are the coordinates of the professor at Rice who
is in charge. I would appreciate if you could call him
and let him know if you can attend.

Thanks.

Vince

Prof. David Ikenberry
Jones Graduate School of Management
Rice University
713-348-5385


Tate, go to the tab on this spredsheet for 1/22 and print.  Give me a call
afterward.


Looks good


I have scheduled a separate meeting Tomorrow from 2-3.  So exclude that time
from our possible meeting times.

D
---------------------- Forwarded by Daren J Farmer/HOU/ECT on 02/01/2000
04:01 PM ---------------------------

Daren J Farmer
02/01/2000 03:20 PM
To: Thu Nguyen/HOU/ECT@ECT
cc:
Subject: Re: MidTex Meeting Feb 1, 2000

I can meet tomorrow from 1pm-3pm or Thusday after 1pm.

D

To: Daren J Farmer/HOU/ECT@ECT
cc:
Subject: Re: MidTex Meeting Feb 1, 2000

Daren,

 I apoligize for the late notice.  I didn't realize that we would need your
help until this morning.  Please let me know the time that is convenient for
you (tomorrow ?) and I will schedule another meeting.  We need to discuss the
purchase deals on MidTex Pipeline, at meters 0393 and 0391 (HPL's meter#s).
The first deal is with Etoco, original deal 44829 (12/98-12/99), which has
been moved to 133435 for Jan 2000 and going forward.  The second meter has
desk-to desk deals starting Jan 99 to present.  These deals need to be
scheduled on MidTex meters instead of HPL's meters.

Thu
3-7159


H 86    L 72    H 88 /  L 70    H 90 /  L 70    H 92 / L 72      *** Severe Weather Alert!! Click here for details... ***         Current Conditions for HOUSTON        Time  7:19 am   Temperature  74F  Humidity  90%   Wind Direction  S  Wind Speed  14 mph   Pressure  29.81 in  Visibility  10 miles   Weather  CLOUDY    Other Selected Products:                      Weather Alarms(tm) is provided exclusively by AccuWeather, Inc. ?2001 for personal use.  Redistribution prohibited.   For additional weather products and services, visit our home site at www.accuweather.com .   If you wish to modify or cancel your subscription, please visit  Direct.AccuWeather.com

 home  || about | signup | modify | cancel | samples | help | terms & conditions | contact


We are completing a telephone systems audit that involved sweeping executive
and executive assistant telephones and workspaces for listening devices.
This sweep included your telephone(s).

On Thursday, November 9, the following tests were conducted by Swailes and
Associates and CTF Specialists under the supervision of Corp. Security:

Each office was swept for radio frequency listening devices
Each telephone was opened and physically inspected
Each telephone line was checked for downline listening devices
All executive and assistant extensions were programmatically evaluated to
determine whether secondary, unknown telephones were associated with the same
extension

No problems were found.

Thanks,

Andrew Parsons
IT Compliance
3-6665


Is it very dark in color?  And how big around is it?


PRIVILEGED AND CONFIDENTIAL:  ATTORNEY-CLIENT COMMUNICATION, ATTORNEY WORK
PRODUCT

Matt,

Thanks for the heads-up on this issue.  I will confer with Janice and one of
us will get back to you.

Meanwhile, I think I may need further clarification about  what testing
methods were used by SGS at loadport and at discharge in Thailand and the
Phillipines.  My key area of concern is whether (as now appears unlikely from
your e-mail) SGS tested using both ASTM D3605 without ashing and ASTM D3605
with ashing at all the relevant points, and whether the test results were
consistent; e.g., whether the product was on-spec for both methods
immediately before loading, but off-spec for both methods at discharge in
Thailand and the Phillipines.  May I impose on you to provide one summary
chronology of the analysis done at loadport and both discharge ports, with
particular emphasis on (a) whether both testing methods (ASTM D3605 without
ashing and with ashing) were used, and the results, and (b) the results for
filterable dirt? (You have just sent something like this for the Thailand
cargo only, which I found very helpful).   Also, if SGS or anyone else has
made comment about the reliability or unreliability of the filterable dirt
analysis (or any other aspect of the testing done by SGS of this cargo),
please let me know about that as well.

I appreciate your good help.

    Britt

	Matthias Lee@ECT
	08/08/2000 06:39 AM

		 To: Janice R Moore/HOU/ECT@ECT, Britt Davis/Corp/Enron@ENRON
		 cc: Alan Aronowitz/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Angeline
Poon/SIN/ECT@ECT
		 Subject: D3605

Dear Janice / Britt

I know that Janice has kindly agreed to return to the team to advise and
coordinate with Mike Brown's team and myself in regard to the D3605 issue,
whilst I am to look to Britt's guidance for the contamination on the Elang
cargo. My apologies therefore for mixing the issues for the puposes of this
e-mail.

The joint testing of samples of the Elang cargo is planned to take place end
next week. The joint testing would include metals as well as filterable dirt,
so we would need to decide, in quite short order, on the test method we want
to propose for metals for relevant parties to agree.

Although we believe the contamination would be dramatically demonstrated by
the level of filterable dirt, the metals clearly would also be an important
factor. As you may be aware, the loadport sample results which we are
presently relying on to say that the cargo was on spec when loaded, was
tested with "ashing" for metals. We would not be able to say whether another
loadport sample would test on spec for metals using straight D3605. If it
doesn't test on spec at the joint testing using straight D3605, the vessel
owners would surely argue that the cargo would have been rejected by First
Gas anyway, independent of the filterable dirt. Although such as argument may
not defeat our case entirely, it is very likely to impact on the quantum we
would be able to recover.

It seems that the preferred test method for metals at the joint testing would
therefore be "ashing" to avoid conflict with existing loadport sample
results. We still have SGS's support for that, but we need to convince Minton
Treharne who acts for the cargo underwriters as well as the Owners/P&I Club.
Still, just in case details of our dispute with Mitsubishi become known to
Firts Gas, we may wish to avoid proposing a test method for joint testing
that would be inconsistent with the one we ultimately present to First Gas,
which for obvious long term objectives ought to be the CORRECT test method
acceptable to parties whether D3605 or "ashing" or some other method. That
said, I think if we are able to go with "ashing" for the joint testing, it is
not likely to jeopardize our position with First Gas.

I note Janice's preference for US experts over European experts for the D3605
issue. Have we been able to get any US experts' view on the right test to use
(whether D3605 or "ashing")? Has Enron formed a view on the "correct" test
method? If we have been able to source a "friendly" US expert, we may want to
have his input for the contamination issue.

Your views and guidance would be most appreciated.

Thanks and regards
Matt

I also note Janice's preference to source for US experts to assist us on the
D3605 issue over European experts and was wondering whether we have been able
to for


WELCOME - Vol. 7 No. 5

TIMELY INVESTMENT INFORMATION - Weekly Economic Update
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WEEKLY UPDATE FOR: February 2, 2002

Prior Week in Review:

Financial Market Highlights:
============================

                        02/01/02     01/25/02     %Change

S&P 500                 1,122.20     1,133.28       -.98%
Dow Jones               9,907.26     9,840.08       +.68%
NASD Comp               1,911.25     1,937.70      -1.37%
Russell 2000              480.04       479.35       +.14%
SOX Index                 552.87       535.94      +3.16%
Value Line                360.89       362.40       -.42%
MS Growth                 569.58       563.87      +1.01%
MS Cyclical               537.92       529.75      +1.54%
T - Bill                    1.71%        1.68%      +3 BP
Long Bond                   5.40%        5.48%      -8 BP
Gold - Oz-Near Month     $286.80      $279.10      +$7.70
Silver - Oz-Near Month     $4.31        $4.31        UNCH

Economic News:
==============

Lots Of Economic Reports Last Week - Consistent Message
 Economy Is Bottoming Out - If Not Recovering Already
 Remain Confident Of Recovery By Spring - Or Sooner

*New Home Sales in December rose +5.7% - But November
 Revised modestly downward
*December Durable Goods Orders rose +2.0%
*January Consumer Confidence rose to 97.3 versus 94.6
*4th Qtr GDP rose +.2% - Huge Surprise - See Below
*FOMC Leaves Rates Unchanged - No Surprise - But
 Leaves Downward Bias in place
*Jobless Claims rose +30,000 to 390,000 - Four Week
 Moving Average fell -15,250 to 386,000
*Chicago Purchasing Mgrs' Index for January rose to 45.1
 December was 41.5 - Nice gain
*Personal Spending fell -.2% in December - Personal
 Income rose +.4% - Largest gain in a year
*4th Qtr Employment Cost Index rose +.9%
*Labor Department January Employment Report
 - Unemployment Rate fell -.2% to 5.6%
 - Nonfarm Payrolls fell -89,000
 - Average Hourly Earnings unchanged at $14.59/hr
 - Average Workweek -.1/hr to 34.0 hours
*Institute For Supply Management Index for January 49.9
 Up from December's 48.2
*December Construction Spending rose +.2%
*Univ. of Michigan Consumer Sentiment for January 93.0
 - Up from December's 88.8 slight ease from midmonth 94.2

As long term subscribers know, we have been more upbeat
than most in our economic outlook.  Now the recession
has disappeared and the Dow Jones Industrial Average
has exceeded the Nikkei.  What more could one ask for ?
We had always believed that prior to September 11th a
recession would have been avoided, but we were hoping that
the Dow would exceed the Nikkei at "somewhat" higher
levels.  All kidding aside, though, last week was positive.

To almost everyone's surprise, 4th Qtr GDP was positive,
but barely so.  So, for the record, at least until the
revisions are released, 2001 GDP growth by quarter was
+, +, -, +.  That doesn't officially qualify as a recession,
but there certainly was a profits recession, and that's
what counts.  Nonetheless, there is a message in the data.

Specifically, if such a mild "recession" can cause such a
severe erosion in corporate profits, the "flip-side"
should be that leverage works both ways.  In other words,
as the economy recovers, profits could surprise on the
upside, even as we believe overall economic growth will
disappoint by "snapping back" less than consensus.

Although the 4th qtr GDP number was driven by consumer
spending, the personal income data imply that the consumer
should not hunker down.  The gain was the best since December
of last year, and with auto companies already announcing
deals, the price sensitive shopping trends should continue.

The other noteworthy item in the GDP report was the huge
drop in inventories, and yet overall GDP was still positive.
With consumer spending likely to be maintained, it seems
highly likely that the inventory correction is over, and
that production will have to increase in the near future.
In fact, some of the lead reports already imply that is
the case - say the new orders component of the Chicago
Purchasing Managers' Index.

The Labor Department Report was also a positive surprise.
However, at year end there are a lot of cross currents in
the numbers so we wouldn't read too much into the decline
in the unemployment rate. Nonetheless, it could have some
psychological significance, and help maintain the more
upbeat tone of consumer confidence.

And finally, there is the Federal Open Market Committee
(FOMC) and their decision to leave rates unchanged, but
to maintain their bias toward lower rates.  As you know,
we expected the former, but thought they would remove
the bias given the rise in consumer confidence and the
three consecutive monthly gains in the leading indicators
series.  It appears that they are trying to micro manage
expectations, as the bias is clearly not needed.

My point is simply that Chairman Greenspan appears to be
becoming increasingly sensitive to financial market
reactions to the FRB's actions of any kind.  He went out
of his way to "correct" the negative impression, we would
argue misinterpretation, of one of his speeches.  Our view
now is that he wanted to leave the bias in place to drive
home his view, and ours, that the recovery will not be sharp.
And, of course, at a subsequent meeting they can remove the
bias, to reinforce perceptions of recovery.  We think such
an approach is a tad too cute, but probably harmless.

Overall, we obviously continue to like the economic data.
It supports our view of a recovery by Spring, if one hasn't
already begun.  Under such a scenario, earnings estimates
should at least hold, taking pressure off the stock market.
We'll see, but at the moment we like the risk/reward ratio.

Current Weekly Calendar of Economic Data:
=========================================

Monday:
Tuesday:        Factory Orders
Wednesday:
Thursday:       Jobless Claims, Consumer Credit
Friday:         Wholesale Trade

Fresh Money Buys:
=================

In response to subscriber feedback, we have established this
section to highlight recommendations from our list that we
believe are the most attractively priced currently.  We will
limit the selections to three each week, even as our list of
recommendations changes.

Am. Int'l Group (AIG)                          $73.25
Automatic Data Proc. (ADP)                     $53.55
Fannie Mae (FNM)                               $81.40

Original reports from the time of recommendation, are
         available on our Website at:

    http://www.stockresearch.com/archive.html

You may obtain a "second opinion" from VectorVest, a service
that provides limited access free so you may try their
service at:

    http://www.stockresearch.com/vv.html

We will not track the performance of this list as we are
already monitoring the original recommendations.  Hope
this helps.

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   with the other address in the Subject: line

This message was launched into cyberspace to alewis@enron.com


I have attached the Books and Portfolios setup in Global Counterparty todate.  We are still making modifications as requested.

Bill


PRC Review & update


Can you review? thanks
----- Forwarded by Elizabeth Sager/HOU/ECT on 06/05/2001 09:50 AM -----

	Charles Yeung 06/04/2001 04:42 PM 	   To: Elizabeth Sager/HOU/ECT@ECT  cc: Bill Rust/Enron@EnronXGate, Christi L Nicolay/HOU/ECT@ECT  Subject: NERC FIST IS OPERATIONAL!

Elizabeth

Can we send in the FIST agreeement ?  It would be good to get this in as soon as possible, there is very useful data in this tool for the hourly traders.

Thanks
---------------------- Forwarded by Charles Yeung/HOU/ECT on 06/04/2001 04:40 PM ---------------------------

"Lou Leffler" <Lou.Leffler@nerc.net> on 06/04/2001 04:33:17 PM
To:	"Lou Leffler" <Lou.Leffler@nerc.net>
cc:
Subject:	NERC FIST IS OPERATIONAL!

04 June 2001
Dear NERC People,

NERC is pleased to announce that the Flow Impact Study Tool (FIST) is
now operational.

If you have already registered, you will be contacted with your login
information.

If you are considering becoming a FIST subscriber, please contact NERC
Staff at:
609-452-8060 (during normal business hours)
for guidance through the registration process.

The FIST Workshop materials are available for download from:
<http://www.nerc.com/~filez/idcwg.html>

The FIST currently contains 78 Eastern Interconnection "Flowgates" for
which analysis over
an advance period of 36 hours can be conducted.

If you have questions, please call.

Thanks,
NERC Staff


What all did we do last week in class?  Anything I need to be prepared for
for
this week?

Now that my competition is done, I can focus on our project.

**********************************************
Mark D. Guinney, CFA
Consultant
Watson Wyatt Investment Consulting
345 California Street, Ste. 1400
San Francisco, CA  94104
(415) 733-4487 ph.
(415) 733-4190 fax


This is the new CAISO calculation for ancillary service charges.  Please look it over and let me know if you have any questions.
Thanks,
Bill

 -----Original Message-----
From: 	CRCommunications <CRCommunications@caiso.com>@ENRON [mailto:IMCEANOTES-CRCommunications+20+3CCRCommunications+40caiso+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Tuesday, July 10, 2001 1:59 PM
To:	SC Settlements Contacts
Cc:	TSWG; ISO Client Relations; Ng, Chi-Pui; Blatchford, James; Klussmann, Rhonda; Morgan, Elizabeth
Subject:	CAISO Communication:  Draft Statement File Specification (V13.1) 	- "Soft Price Cap for  Ancillary Services"

SC Settlement Contacts:
IMPORTANT NOTICE
Draft Statement File Specification (V13.1)

ISO plans to make some minor changes to the Settlement Statement Files
related to "Soft Price Cap for  Ancillary Services", described as follows:

Soft Price Cap for  Ancillary Services

Problem Description
Last December, ISO implemented the Soft Price Cap scheme that established a
soft price cap for both energy and Ancillary Services (A/S).  Bids above the
soft cap, if accepted, would be paid as bid (subject to review and refund),
but would not be able to set the Market Clearing Price (MCP).  The soft cap
was set to $250 initially and then changed to $150 in January.  In the
subsequent FERC Orders dated 4/25 and 6/19, FERC has established new price
mitigation schemes.  However, the underlying mechanism of the soft price cap
scheme has remained the very much similar.  The only difference is that the
soft cap becomes a more dynamic number under the more recent schemes.
The soft price cap for energy is processed automatically by ISO's Settlement
System.  For A/S, a manual process is being used.  When an A/S bid at above
the mitigated price cap is accepted, it receives two payments: one at MCP
and another that accounts for the difference between the bid price and MCP.
Currently, this surplus payment is calculated manually and appears as a
manual adjustment in the SC's statement file.  The corresponding allocation
of such surplus payments to the market also appears as manual adjustments in
the other SCs' statement files.  The manual process is labor intensive, more
prone to error and creates a large number of manual adjustments that are
difficult to track.

Proposed Solution

ISO plans to automate A/S Soft Price Cap scheme.  Once automated, the
accepted A/S bids will receive only one payment whose price is the higher of
the bid price and Market Clearing Price.  No manual adjustments will be
needed.  The entire payment will appear in the Day Ahead Ancillary Services
Due SC payments (charge types 1, 2, 4, 5 and 6) or Hour Ahead Ancillary
Services Due SC payments (charge types 51, 52, 54, 55 and 56).

The Ancillary Services cost allocation (charge types 111,112,114,115 and
116) will be calculated using a weighed average prices for the service
instead of the MCPs.

Settlement Calculations

For Day Ahead (DA) A/S Due SC payments, the price will be given by:
Price = max (Bid Price, DA Zonal MCP of given service)

Similarly, for Hour Ahead (HA) A/S Due SC payments,
Price = max (Bid Price, HA Zonal MCP of given service)

For A/S Cost Allocation, the unit price of A/S obligation is currently
determined as follows:
Allocation Price = (DAQ*DAMCP + HAQ*HAMCP) / (DAQ + HAQ)
where
DAQ = DA procurement target in the subject DA Region
HAQ = Incremental HA procurement target in the zones that make up the DA
region
DAMCP = MCP of the subject service in the DA region
HAMCP = Weighted average MCP of the subject service in the zones that make
up the DA region

Under the new scheme, the MCP terms in the above equation will be replaced
by average procurement costs.  Thus,
Allocation Price = (DAQ*DAP + HAQ*HAP) / (DAQ + HAQ)
where
DAP = Average procurement price of the subject service in the DA region
HAP = Average procurement price of the subject service in the zones that
make up the DA region

Settlement Statements

There is no change to the settlement files structure.  The meaning of
several fields in the Ancillary Services Detail File have been modified
slightly.  These changes are explained in the latest draft of the ISO
Settlement Statement Files Specification - Version 13.1.

Implementation Timelines

The change described above will take place in the Settlement Statements
beginning with trade date 5/29/2001, on which the FERC price mitigation
scheme (as described in the FERC 4/25 Order) took effect.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXX

Attached for your review are:

- Draft Settlement Statement File Specification (V13.1); and
- Draft ISO Charge Matrix for Automated Charge Types (V13.1).

There is no structural change made to the Settlement Files.  Only the
definition of several data fields have been changed.

 <<File Spec - Version 13.1 - 070601 - Draft.doc>>  <<Charge Matrix
(Automated Chrg Types) - Version 13.1 - 070601 - Draft.xls>>  <<Market
Notification.doc>>

Questions and Comments
Please direct your questions and comments to Mr. C. P. Ng via email
(cng@caiso.com).

Client Relations Communication
CRCommunications@caiso.com

 - File Spec - Version 13.1 - 070601 - Draft.doc
 - Charge Matrix (Automated Chrg Types) - Version 13.1 - 070601 - Draft.xls
 - Market Notification.doc


[IMAGE]	portal.erisk.com
		What's New at ERisk.com - 23 November 2001

Weekly Review	In  this week's round-up   of economic, banking and P?insurance news from an enterprise risk management  perspective: stock markets mixed, but oil markets rise on production pact;  hopes of a new approach to Japanese bad loans; German consumer confidence  falls sharply; reputational risks trip up US banks; P?insurance rates  keep on rising, but fears mount over terror coverage exclusions.
Analysis 	 US  energy giant Enron's problems continue to mount, while hearings on the  failure of Australian insurer HIH are about to begin. How is it that companies  entrusted with managing risk for others can fail so spectacularly to manage  their own risks? In this week's  analysis , Rob Jameson looks at some of the factors that make such  firms vulnerable to unpleasant surprises.
Viewpoint	By  the first quarter of next year, companies and investors should be able to  hedge or speculate directly on consumer confidence, GDP and other economic  factors. In our latest Q? ,  ERisk talks to Deutsche Bank's head of foreign exchange options, Kevin Rodgers,  about the new financial instruments that will allow positions to be taken  on such economic statistics. Still available: CRO  Profile  of Paul Hogan, FleetBoston's chief risk officer
Feature	Digital  risks - the risks associated with doing business in a networked environment  - are on the increase, and they have already hit many companies hard. In  our latest feature ,  "Risk management in the digital age", Rick Davis of consultancy  DigitalRisk Advisors looks at how risk managers need to take an enterprise-wide  approach if they are to identify and prepare successfully for the wide range  of things that can go wrong in e-business. Still available: Bank  Credit Processes and Operational Risk , by Becky Walzak of Boston Portfolio  Advisors.
Product Catalogue	The ERisk Product  Catalogue  is a comprehensive guide to systems and services for risk  managers. You can browse through our categories, such as Portfolio Credit  Risk, Credit Scoring, Limits Management, Operational Risk Systems and Asset/Liability  Management. Or you can search for key terms in the hundreds of entries for  software products, data sources, consultants and educational materials.

		  More than 17,000 risk professionals receive this email every week. To find  out how your message could reach them, mail us at info@erisk.com
		 ____________________________________ The ERisk Essentials  is published every Friday by ERisk.com .  To subscribe to this newsletter, please register  on our website.   To unsubscribe, access your account . Your username  is the email address where you received this message. If you have forgotten your password, follow this link  to reset it. For technical support queries, please email support@erisk.com

[IMAGE]


FYI.
----- Forwarded by Alan Aronowitz/HOU/ECT on 05/19/2000 11:39 AM -----

	Paul.TYO.Davis@BakerNet.com
	05/19/2000 07:15 AM

		 To: Alan.Aronowitz@enron.com
		 cc: Joseph.P.Hirl@enron.com, John.Viverito@enron.com,
Rousseau.Anai@enron.com, Mark.Taylor@enron.com, Hideo.Ohta@BAKERNET.com,
Nicholas.O'Day@enron.com
		 Subject: Enron Online: Counterparty Authority

In view of the importance of this issue it is desirable to deal with it in
detail.

1.  The Issue

The essential issue we are focussing on is that set out in my email of May 12,
i.e. the need to avoid the possibility of a counterparty being able to claim
that the transaction is not binding because:

(a) it was outside the company's business purposes, or
(b) execution of the application was not authorized.

This issue is not unique to Japan

There is no question as to any specific Japanese laws impacting on the trading
of any of the products through the internet, including issues as to
contractual
enforceability of contracts entered into via the internet, on which we advised
on 15 March.  A copy of that advice is attached to the bottom of this email.

Neither is there any question, if the above issue is resolved, of the
Electronic
Trading Agreement and General Terms and Conditions forming part of the
contract.
(We understand Mark Taylor to be concerned on this aspect.)

2.  Enron's Practice re EOL

Our understanding is that:

* Potential customers have been sent the password application under cover
of a letter from Joseph Hirl inviting them to complete the application.
Neither
the letter nor the application form indicate who is expected to sign the form.

* Completed applications are reviewed by Enron primarily from a credit
standpoint but also, we understand from Mark Taylor, to quickly confirm the
authority of the signer (by e.g. in the case of a U.S. counterparty, checking
if
the signatory shows the title "director" alongside his name).

* If satisfied, Enron then signs the acceptance part of the application
and issues a password.

* Four applications had been received regarding Japan as of 11am today and
none has yet been approved.

3.  Business Purposes

Article 43 of the Civil Code provides that a juristic person has rights and
obligations in accordance with law and the business purposes specified in its
constituent documents.  Where a corporation enters into a contract outside its
business purposes, the contract is prima facie void.

However, if the counterparty did not know that the contract was beyond the
power
of the corporation, and was not negligent in failing to know such fact, the
contract will be enforced under Article 110 of the Civil Code.

The most prudent practice would be for Enron to obtain a copy of the
counterparty's business purposes (certified by the Legal Affairs Bureau or by
a
representative director) and form a view on whether the proposed transaction
falls within those purposes.

However, since Japanese companies' business purposes, after listing a limited
number of specific purposes, generally include a final item along the lines of
"all incidental or ancillary business", it is common for companies to not make
this inquiry except in the most major contracts.

With respect to statutory corporations, however, care is required because
often
their business purposes are in fact limited.

Accordingly, a rule of thumb solution would be: if the counterparty name does
not contain "Kabushiki Kaisha" or "Yugen Gaisha" at the end of the name, to
make
further inquiries.

4.  Authority to Bind the Company - The Law

The position in Japan is similar to that in a number of other countries in the
sense that:

(a)  Deemed Authority

The law provides for a form of execution which, if followed, entitles a party
to
presume that the company is bound.  In Japan, this involves the execution of a
contract by the company's "representative director".  This corresponds to the
presumption concerning the affixing of the company seal in some states of the
US
and in the UK, and the execution of the contract by 2 directors in Australia.

It is possible for the powers of the representative director to be restricted
by
law or the constituent documents of the corporation. (Article 53 of the Civil
Code) but if the counterparty did not know of such restriction, the contract
is
still binding on the company.

(b)  Apparent Authority

In common, with other countries, Japan has a concept of apparent authority.
Article 262 of the Commercial Code provides:

 "A company shall be liable to a bona fide third party for any act done
by a director invested with any title such as president, vice president,
executive director or managing director from which it may be assumed that he
has
authority to represent the company, even in cases where the person has no
power
of representation."

Articles 37 and 38 of the Commercial Code extend the same concept to "general
managers" (so shihainin).  It is generally considered that Article 43 then
applies the concept to "an employee who has been entrusted with certain types
of
matters or specific matters."

Accordingly, in addition to persons having the titles listed in Article 262
(above), the general view is that persons having titles such as general
manager
and division manager (bucho), will be deemed to have the authority to
represent
the company for normal transactions within the particular areas of the
company's
business for which they are responsible.

It is also likely that section managers (kacho) or section chiefs (kakaricho)
have power to bind the company to a certain extent in areas for which they are
responsible.

(e)  Holding Out

Even if an employee of the company is acting outside his actual authority, if
the company has held the employee out as having authority, the company will be
bound by his/her action.

5.  Practical Considerations

In formulating an approach for Enron to take on the basis of the above law,
the
following factors are relevant:

(a)  Practice regarding Representative Director Seal

It is common for a counterparty to seek to take the advantage of the
presumption
referred to in 4(a) above by requiring the representative director's corporate
seal to be affixed (and, if contract is in English, for him to sign) or  to
insist on tracing the "chain of authority" of the signatory up to the
representative director (e.g. by power of attorney), for major or unusual
transactions.

(b)  Size of Transaction

The question is what transactions fall into the "major" or "unusual" category.

Unfortunately the cases on this do not allow a clear line to be drawn.  As in
many other countries, the answer depends on factors such as those noted in
(c),
(d) and (e) below, which vary company by company.

Accordingly, where the contract involves (or could involve) a considerable
ongoing exposure by the company, Japanese corporations would not be surprised
to
be asked for the signatory to be at a certain level, or for written
confirmation
of the signatory's authority to be obtained from a person at such level.

(c)  Size of Company

While it would be prudent and normal to insist upon the representative
director's seal being affixed to a contract of the present type in the case
of a
smaller company, it would not be normal practice to so insist in the case of a
major company such as a bank or major trading company counterparty, in which
companies lower level employees are presumed to have greater authority.

(d)  Business Department of Signatory

The counterparty is more likely to be bound under the apparent authority
doctrine if the signatory is in (and carries a title which refers to) the
relevant business department (e.g. energy), than if he is not.

(e)  Degree of Exposure

To the extent that the online products to be made available are likely to
expose
the counterparty to considerable liability, the possibility of a counterparty
in
the future disclaiming liability should not be discounted and would warrant a
reasonably conservative approach.

(f)  Recent History

However, even when faced with considerable losses during the recent economic
crisis, Japanese companies (at least major companies) have not generally
attempted to use lack of authority as a defense, presumably because of
reputation considerations.

(g) Identity of Addressee

The title of the person to whom the invitation letter is sent may be relevant.
For example, if it was sent to the General Manager of the relevant department,
but the application came from a section chief, there would be strong argument
that the company had held the section chief out as having the necessary
authority.

(h)  Internal Procedures

Since the law concerning execution by a representative director can be
considered to broadly correspond to the law concerning execution under seal in
some countries, and by two directors in for example Australia, the Japanese
rules are not out of line with those of other countries.

Accordingly, it should be necessary for Enron to take a more stringent
approach
to Japan in this respect than it does in marketing the same products in other
countries.  The procedures in place for other countries may be sufficient for
Japan as well, although some adjustment will need to be made for Japan's
unique
regime of company titles.

6.  Conservative Approach

If the online transactions are treated as a major or unusual transaction for
the
counter-party, under common practice Enron would require:

* The application to be executed under the registered seal of (and counter
signed by) a representative director, or by a person who is able to produce
documentation showing a line of authority originating with a representative
director.

* A certified copy of the seal register.

* A certified copy of the register of the company issued by the Legal
Affairs Bureau, to confirm the business purposes and the identity of the
representative director.

7.  Less Conservative Approach

Major Companies

For major Japanese trading companies, banks, insurance companies and other
companies of equivalent size, the following approach could be adopted which
would not be out of line with market practice:

* The application to be executed by a manager (or general manager)(bucho)
of the relevant department or above, or

* By a person able to establish a line of authority from such party.

A more aggressive approach would involve accepting applications signed by a
person at the level of section manager (kacho) or section chief (kakaricho),
but
this is right "on the line" and we would prefer Enron to do so only if there
is
some history of dealings with the company or other evidence to back up an
apparent authority argument.

Smaller Companies

For other companies the approach would be as set out in 6. above.

Perhaps your credit control procedures could be used to set a benchmark for
dividing between small and large companies.

8.  Likely Response of Target  Companies

Your marketing experts will be in a better position than us to form a view
but,
taking into account Japanese commercial practice, we do not believe any
company
is likely to be offended if Enron responds along the above lines to an
application signed by a person who does not meet the above suggested approach,
particularly taking into account that the approach is not inconsistent with
the
correspondence and application form the companies have been sent and no
applications have yet been approved.

Regards

Paul Davis/Hideo Ohta

__________________________________
Baker & McKenzie Advice of 15 March 2000

Dear Mark:

I refer to you e-mail of March 3 sent to my partner, Paul Davis.  I am in
charge
of our Information Technology/E-Commerce Dept.  Please accept my apology for
not
having responded earlier.

Please see our comments below.

Should you have any questions, please let us know.

Best regards,
Yasuyoshi Goto

> -----Original Message-----
> From: Mark Taylor [mailto:Mark.Taylor@enron.com]
> Sent: Friday, March 03, 2000 9:17 AM
> To: Paul.TYO.Davis@BakerNet.com
> Cc: Alan Aronowitz
> Subject: EnronOnline in Japan
>
>
>
>
> Dear Paul:
>
> I believe Alan Aronowitz and Mark Haedicke of our office met
> with you a week or
> so ago and mentioned that we would need advice from you
> regarding the use of our
> internet trading website with customers in Japan.  Below is a
> list of initial
> questions regarding which we would be grateful for the
> benefit of your advice.
> For your background information as you consider these
> questions, be advised that
> counterparties must sign a written "Password Application"
> which provides that
> the counterparty intends to be bound by agreements entered
> into by "clicking" in
> the appropriate spaces on the website.  Please feel free to
> contact me with any
> questions you may have.  I can be reached either by e-mail at
> Mark.Taylor@enron.com or by telephone at (713)853-7459.
>
> 1.   Have relevant regulators in your jurisdiction made any
> statements regarding
> marketing of or dealing in any of the following types of
> products through the
> internet or other electronic systems:
>
>      Commodity transactions relating to oil, gas, electricity
> or other energy
> commodities, whether derivative
>           transactions (cash settled) or physically settled.
>      Financial derivatives - i.e. interest rate, foreign
> exchange or credit
> derivatives.
>      Weather derivatives.
>      If so, please could you provide us with a brief summary.

Our research has revealed no statements of regulators in Japan in connection
with the marketing or dealing in the above types of  products through the
internet or other electronic systems from publicly available source.  We will
let you know if we find any previous or future statements.

>
> 2.   Do any specific laws or regulations exist in your
> jurisdiction which would
> prevent or in any way impact upon marketing or trading of any
> of the products
> set out in question 1 above through the internet?  In
> answering this question
> please address issues relating to contractual formation and
> enforceability of
> contracts entered into via the internet.  In particular, if a
> transaction
> entered into via the internet is enforceable under U.S. or
> U.K. law and the
> transactions contain a choice of such law, will such
> transactions, including the
> choice of law, be enforceable in Japan?

We do not have any specific laws or regulations which would marketing or
trading
of any of the products set out in question 1 above through the internet.
Under
Japanese law, formation of any contract does not require any formality.

Japanese law generally does not require any formalities for offers or
acceptances to be valid as such. There is no Statute of Frauds, and parties
may
make most types of contracts orally. If there is enough evidence establishing
that the offeree agreed to the terms offered, an offeror may rely on it. In
most
simple sales contracts for consumer goods, for example, it would be easy to
prove that the customer agreed to pay x yen for product Y. The Seller's
electronic records showing that the customer clicked on the icon to buy
product
Y should be enough in this context.

In more complicated contracts, the structure of the seller's Web pages should
be
carefully designed. Having no court decisions, we have no definite answer to
the
question of enforceability of shrink-wrap agreements in Japan. However, the
legal implications of the Web-wrap, the online version of shrink-wrap, may be
somewhat different from shrink-wraps (e.g. licenses for software sold over the
counter).  Under a typical shrink-wrap license in the real world, for example,
the customer cannot break the wrapper until after the customer purchases the
product. However, in an on-line environment, a customer has a choice to click
on
an Accept-to-Buy icon before the customer purchases the product. Further,
with a
carefully compiled sequence of screens or pages which would in effect be able
to
let the customer read the terms and conditions before rushing to click on the
icon, it would be easier to prove that the customer read the terms and
conditions than in a typical shrink-wrap license situation. Unlike shrink-wrap
in the real world, the seller may obtain an electronic record showing that the
customer clicked on the icon. Given these differences, the result possibly may
be more favorable to sellers online than to those using shrink-wrap licenses.

If a transaction entered into via the internet is enforceable under U.S. or
U.K.
law and the transactions contain a choice of such law, such transactions,
including the choice of law, will be enforceable in Japan.

>
> 3.   If the answer to either of question 1 or 2 is "yes",
> please indicate
> whether the impact of any relevant statements, laws or
> regulations will differ
> depending upon whether (a) the relevant internet site is
> maintained in your
> jurisdiction or elsewhere; or (b) the party effecting the
> marketing/trading
> through the internet is locally licensed.

N/A

> 4.   Please confirm that by marketing to or trading with
> counterparts in your
> jurisdiction via the internet local relevant regulatory
> bodies/local laws or
> regulations will not consider the party maintaining the
> relevant website to have
> established a physical establishment/branch in your jurisdiction.

We do not have any clear cut answer to this since we have no relevant laws,
regulations, or court cases.  So long as  the party maintains the relevant
website with a computer server located outside Japan, the likelihood of
Japanese
regulatory bodies to consider that the party maintaining such website
established a "physical" establishment/branch in Japan is negligible.

>
> Thank you in advance for your attention.  We look forward to
> hearing from you.
>
> Sincerely,
>
> Mark Taylor
>
>

***********************************************************
This is an e-mail from Baker & McKenzie - Tokyo Aoyama Law Office (Qualified
Joint Enterprise Offices). The contents of this e-mail may be privileged and
confidential and are intended only for the use of the addressee. No one else
may
copy, forward, disclose or use all or any of it in any form.

If you are not an intended recipient, please notify us immediately (by reply
e-mail) and delete this e-mail from your system.

Thank you.


Hope you had a great weekend.  Received this out of the blue.

----- Forwarded by Gerald Nemec/HOU/ECT on 01/16/2001 08:03 AM -----

	"Philip Rouse" <fliprouse@email.msn.com>
	01/13/2001 12:49 PM

		 To: <gnemec@ect.enron.com>
		 cc: "JIM TAYLOR" <JIM.TAYLOR@MERRICK.COM>, "Ralph Townsend"
<ralph.townsend@merrick.com>
		 Subject: Lost Creek (crop damage)

?
Attached is?the form of release letter  Merrick intends to use in connection
with its payment of minor crop damage on  the Lost Creek pipeline project.
?
Please let me know if you have any comments  with respect to the form of the
release.??Merrick intends to send  payment with the letter on January 17,
2001.
?
Thank you.? Phil  Rouse
 - Jack Corbett (1).doc


Group,
Please see below.  It is important that we notify our customers regarding
changes in the schedules.  All the updated phone numbers have been put in
your boxes and a sheet with numbers is also taped to the desk.  If you cannot
reach a customer, please attempt to notify Chris Foster or myself.
Thanks,
Bill

---------------------- Forwarded by Bill Williams III/PDX/ECT on 04/04/2001
08:29 AM ---------------------------

	From:  Chris H Foster                           04/03/2001 10:24 AM

To: Bill Williams III/PDX/ECT@ECT
cc: Greg Wolfe/HOU/ECT@ECT

Subject: ISO Hour Ahead Schedule Adjustments

Bill:

Can you make an effort to tell everyone in real time to try to remember to
contact the services customers when a schedule adjustment that incs of decs
their generation comes from the ISO.  If we tell them what their final
schedule is, they can't argue that it was our fault.  Even if we do not
notify them, it is currently our position, that it is not our fault, but at a
minimum, for customer service, we should try to notify them.

Thanks!

Chris


Ellen please fax this confirm to Jason Williams @ 713-853-9476  Tag # VA 6791 Satara # 798265

Thanks!

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


To All,

For security purposes, the custodial crew has been asked to lock classroom
doors nightly at 10:00 p.m.  They have been directed as follows:

If students are in a classroom when a custodian comes to lock the doors at
10:00 p.m., the students may remain in the room, but the door will be
locked.  If students leave the room after 10:00 p.m., they will not be able
to re-enter.

As previously agreed:  1) Students will be asked to, and are expected to,
leave a classroom when a custodian comes - at any time - to clean the room;
2) Students may remain in the building until midnight; and 3) If students
are asked to leave the building after midnight by a member of the custodial
crew or the Security Guard, they should do so.

Security is important to all of us.  Your cooperation will be
appreciated.  Thank you.

Patsy Shaughnessy
Facilities  Manager
Haas School of Business
S545 Student Services Bldg.
University of California
Berkeley, CA  94720-1900

Tel:  (510) 642-4617
Fax:  (510) 642-4700


Dear Stan, Sheila, Mike, Jim and Jim,
Attached in .doc format is a script that can be used for the annual meeting.
Keith and I have found it particularly helpful in past years -- reminds us of
the time, introductions, people to thank, etc.  Feel free to use it as an aid
and modify your parts of the moderation however you need.  Thanks, Rae

 - final script.doc


Document attached

 - 1AMD93RS Oct2001b.DOC


I just came from the House Ag. Committee where the interested parties have
congregated throughout the negotiations today.  Title I and Titles II are
closed, which include the energy/metals exemption language. Tom Briggs and I
have reviewed the latest draft (minus any changes made in pen by the staff)
and the language critical to Enron titled "Legal Certainty for  Certian
Transaction in Exempt Commodities" is identical to that passed out of the
House.  This is satisfactory to us.

We hope and expect (Speaker Hastert has commited to doing so) to have this
included in the final end of the year omnibus appropriations legislation.
Congress will likely vote on this legislative package on Friday.

This could all come unraveled at this late date, but we are cautiously
optomistic (George W's words yesterday afternoon...so maybe a good omen).

Chris and Tom

----- Forwarded by Chris Long/Corp/Enron on 12/13/2000 05:58 PM -----

	Stacy Carey <SCAREY@ISDA.ORG>
	12/13/2000 01:15 PM

		 To: US REGULATORY COMMITTEE <USREGCOMM@isda.org>
		 cc:
		 Subject: CEA Legislation

Negotiations between Treasury Department and Senator Gramm last evening and
this morning resulted in substantial progress on the CEA legislation.
However, certain drafting issues remain open and final sign-off by all
parties has not been obtained.  In a conference call this morning the
Treasury Department cautioned that there are open points on almost every
title but that progress had been achieved.

Draft language is currently circulating between Senator Gramm, Treasury
Department and the House Agriculture Committee.  All parties are working to
achieve final language as soon as possible this afternoon in order for the
final CEA package to be attached to a final spending package which is likely
to be considered by Congress tomorrow.

Please call (917)543-9622 if you have any questions or if you would like to
discuss further.

Stacy