Hi Jay,
I thought I'd send you some lite reading.  May provide a distraction for you
from your normal day.  This is a first hand account I received from Capt
Greider. He didn't (couldn't?) go into detail in some areas I would be
interested in, but at least it is the true story and account.  Suprisingly
not a whole lot different than the media reported.  The ROC vs PROC point
was interesting.  Shows the thought process of an insecure government.
Anyway enjoy.
Dad

AN INSIDE LOOK AT THE CHINA RESCUE MISSION
April 12, 2001
By Captain Guy Greider
Continental Airlines
Since the mid-air collision on April 1, 2001 between a U.S.  Navy EP-3
surveillance aircraft and a Chinese jet fighter, I had watched the news with
mild interest.  This was mostly due to the proximity of Guam to China.  I
never dreamed that I would play a role in this intensely watched
international drama.
Somewhere in the negotiations between the United States and the Chinese
Governments, it was decided that a civilian aircraft should be sent to
retrieve the 24 crewmembers being detained on Hainan Island, China.  A call
was made to Continental Airlines headquarters in Houston, Texas.
Continental was chosen because of its Guam base and its ability to launch
this kind of operation at a moment s notice.  From there, the operation took
shape through the tireless efforts of many people working behind the scenes
in a coordinated effort between the airline, the military, and the State
Department.
On Saturday, April 7, 2001, I received a call at home from Captain Ralph
Freeman, Continental Micronesia Director of Flight Operations.  Ralph told
me that the military wanted to charter one of our jets to conduct a rescue
mission and asked if I would be one of the crewmembers.  I said yes without
hesitation.
Later we were told that we would need to get passport pictures taken in case
the Chinese Government required visas.  We got the required photos and were
under the impression that we would leave immediately.  However, the
negotiations slowed over the demand from the Chinese that the U.S.  issue an
apology that the U.S.  was unwilling to give.  Meanwhile, the Continental
crew remained on call 24 hours a day.  Our Uniforms were laid out and our
bags were packed and waiting by the door.
On Wednesday evening April 11, 2001, at about 6:30 PM Ralph called again to
say that the two parties were very close to an agreement to release the U.S.
crew and to come to the airport.  Upon arrival, we were given a briefing
sheet listing the information that we would need to conduct the flight.
We would carry a Repatriation Team consisting of Navy, Marine Corps, and Air
Force specialists, 14 people in all.  Doctors, Psychologists, and
communications people with lots of gear showed up on the ramp near the
airplane, ready to board.  They were all dressed in casual civilian clothes.
The 155-seat jet was fitted with 2 full stretcher kits bolted in over rows
of seats complete with Oxygen tanks and I.V.  bottles.  They did not know
the condition of the
24 detained crewmembers and they were not going to take any chances.  They
were prepared.
When our crew was fully assembled, it consisted of 11 people.  2 pilots to
fly the jet and an extra to provide relief because of the extensive flight
time involved.
They were Captain Tom Pinardo, Captain Pierre Frenay and I.  We also carried
5 very experienced Flight Attendants.
They were Debbie Percell, Susanne Hendricks, Jean Tang, Cynthia Iverson, and
Beverly Haines.  Our 2 onboard mechanics were Peter Lum and Julius Aguilo.
Our load planner was Mike Torres.
At about 9:30 PM we received a call asking that we arrive in China no
earlier than 6:00 AM, just about sunrise.  It was obvious that the entire
exchange would be photographed and they wanted daylight conditions.  We
estimated that a 2:15 AM departure from Guam would put us on the ground in
Haikou precisely at 6:00 AM local China time.  (2 hours earlier than Guam)
Some of us just stayed on the plane, others accepted the company s
invitation to come to the Continental President s Club, a local VIP lounge
at the airport to try to get some rest.  It was difficult to get any rest
with our much-anticipated mission so near.
By 1:00 AM the pilots were back in the briefing room going over the weather,
flight plan, fuel requirements and everything else that goes into a flight.
Again, we loaded up the airplane and finally departed Guam International at
precisely 2:15 AM.
The stretcher kits and medical gear were not the only special additions to
the airplane.  The company had loaded a special file into the navigation
database of the flight management computer (FMC).  This allowed us to gain
access to navigation data needed to operate in this part of China, which is
not in our normal route structure.  The Repatriation Team carried
sophisticated equipment to communicate with the military and government
officials that would monitor our progress throughout the flight.
The route of flight took us straight west from Guam toward the Philippines
along the G467 airway.  About half way across we turned north directly
toward Hong Kong.
This routing was designed to avoid flying through Taiwanese airspace,
something that the Chinese could consider offensive.
Approaching the Chinese coastline, we contacted Hong Kong radar control.
After establishing radar contact with us, the controller gave us a short cut
to expedite his traffic flow.  This was bad because it cut off considerable
distance and would result in arriving too early.  We compensated by slowing
our airspeed until the computer again estimated a 6:00 AM arrival.  The
instant we turned across the short cut, the interphone rang from the back of
the plane.  They wanted to know why we had deviated from the flight plan.
We told them it was due to Hong Kong traffic and that we had adjusted our
airspeed.
We were still on schedule.
Now we were approaching our destination, Haikou airport on Hainan Island.
Captain Pierre Frenay was at the controls.  The weather was 2000-ft overcast
with 5 miles visibility and light winds out of the east.  Pierre made an ILS
approach to and landed on runway 9.  Haikou airport is much the same as many
other airports in the world that serve jet transport aircraft.  It has an
11,000-ft runway with standard lighting and navigational facilities.  We
touched down at 6:07 AM.  The first early morning light was beginning to
illuminate the sky.
The local air traffic controller instructed us to follow a vehicle that was
beside us on an adjacent taxiway.  He led us to a remote part of the
airport, away from the main terminal buildings.  Once we had parked and shut
down the engines, we saw many uniformed Chinese military personnel and
vehicles.  They did not appear to have weapons.  Portable stairs were
brought up to the airplane and we opened the main cabin door.
The Repatriation Team that we carried had been briefed to close down all of
their communications equipment prior to landing and put it away.  They were
also briefed to remain in their seats in a non-threatening posture in case
the Chinese military came aboard.  The first and only person to come aboard
was an Air China employee.  He spoke English and was to act as the
translator between our group and the Chinese military.  He instructed us to
have everyone fill out both arrival and departure documents.
He collected all of our passports and left the aircraft.
Before he left, he said that only one person at a time would be allowed to
deplane.
Peter Lum, one of our mechanics went down to supervise the re-fueling and
servicing of the airplane.  When that was complete, I went down to do the
walk-around inspection.  I did this rather slowly because I wanted to have a
chance to look around.  While I was out on the ramp, a skirmish developed
between people who were trying to climb a wall to photograph our aircraft
and the Chinese police.  Somehow, CNN managed to carry our arrival and
departure live.
Once the airplane was serviced and ready to go, we looked anxiously around
for any sign of the buses that carried our 24 detainees.  Before that could
happen however, we had a problem to deal with.  A U.S.  military General who
was on the scene to assist in the transfer came storming up the stairs and
demanded to speak with the Captain.  Tom Pinardo responded.  The General
said that the entire mission was now in jeopardy.  A document called the
general declaration, which is standard on all international flights had
listed the destination as Haikou, China R.O.C.  The initials ROC stand for
Republic of China which is ..  Taiwan!  The Chinese were very upset over
this.  Tom quickly crossed out ROC and replaced it with P.R.O.C.  the
Peoples Republic of China.  This seemed to satisfy them.
With the airplane ready to go and the paperwork complete,
2 buses pulled up and the 24 U.S.  service men and women saluted as they
bolted up the stairs and settled into the back of the plane.  When the last
one was aboard, our passports were returned to us.  The stairs were
withdrawn, the cabin door closed, and we started the engines and departed.
It was my turn at the controls.
Once airborne heading straight south we broke through the clouds into the
bright sunshine.  Pierre made a PA announcement that we were over
international waters and leaving Chinese airspace.  A great cheer rose from
the back of the airplane.  A short while later we received a telephone patch
over the HF radio from Mr.  Joseph Prueher, U.S Ambassador to China.  He
wanted to speak with Lt.  Shane Osborne the 26 year old EP-3 Aircraft
Commander.  Lt.  Osborne came to the cockpit and put on a headset.  The
Ambassador told him that on behalf of the President of the United States and
the entire country he wanted to say welcome home .  He went on to say how
proud he was of everything the crew had done from their airmanship in saving
the lives of the crew and aircraft, to their conduct on the ground once they
had been detained.  They had truly done an excellent job.
After his conversation with the Ambassador, Lt.  Osborne stayed in the
cockpit for quite a while and told us his story pilot to pilot of what had
happened during and immediately after the mid-air collision with the F-8
Chinese fighter.  The fighter came up under their left wing.  This pilot
made 2 very close passes previously that day.  He apparently misjudged the
intercept and his vertical stabilizer struck the outboard left propeller on
the EP-3.  The U.S.  plane was in straight and level flight on autopilot at
the time.
The fighter broke into two pieces and plunged into the sea.  The U.S.  plane
rolled to the left almost inverted, the pilot lost control and they began to
lose altitude.
The Chinese fighter had raked back across the fuselage and knocked off the
nose cone causing the aircraft to buffet wildly.  When the nose cone
departed the aircraft it collided with and damaged the number 4 propeller on
the right wing.  The collision punctured the pressure vessel and the EP-3
depressurized.  The collision also knocked off the pitot tubes eliminating
airspeed and altitude indications in the cockpit.  It also knocked off the
forward bracket for the HF radio antenna.  The antenna then flew back and
wrapped around the tail.
We were almost upside down and totally out of control Osborne told us.  The
dive continued and some crew members donned parachutes.  At about 8,000
feet, Osborne regained straight and level flight.  They considered ditching
the aircraft in the South China Sea but dismissed that option because it was
certain to result in loss of life.  They headed for the nearest land, Hainan
Island.  The U.S.  crew now faced the most difficult landing of their lives.
They made numerous mayday, mayday, mayday radio calls on internationally
recognized emergency frequencies.  The Chinese did not respond.  Somehow,
they managed to get the airplane on the ground.
Their next immediate task was to destroy the sensitive electronic
surveillance equipment aboard the EP-3.
Meanwhile the Chinese military had approached the aircraft in vehicles and
were yelling at them through loudspeakers to deplane.  The next 11 days
would be a very uncertain time for them.
When we met them, they told us that they had not been abused or mistreated.
Their food was adequate and plentiful.  Sort of like eating in a Chinese
restaurant every day one of them said.  On the forth day, they got some
coffee.  On the fifth day, some cokes were provided.
The crew did not know what kind of transport would be provided for their
return home.  They were pleased and surprised to see a chartered airliner
from the United States.
The rest of the flight from Haikou to Anderson AFB on Guam was uneventful.
During the 5 hour flight the crew was treated to the movie Men of Honor and
enjoyed a first class meal.  We did not know it at the time but our landing
at Anderson AFB was carried live on national television.
We taxied to the parking ramp at Anderson where many people had turned out
to welcome all of us home.


Wants you to call.  713-853-6773.  S


Please prepare the EEI Master Power, ISDA and Master Firm contracts in
accordance with the terms below.  We should also look at putting together
Master Netting and Master Collateral Agreements as well.  Comments or
questions, please reply.


----- Forwarded by Tana Jones/HOU/ECT on 10/19/2000 11:24 AM -----

	Bradley Diebner
	10/19/2000 11:15 AM

		 To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Bernice Rodriguez/HOU/ECT@ECT,
Brant Reves/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, David
Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Molly Harris/HOU/ECT@ECT,
Cynthia Clark/Corp/Enron@ENRON, Mary G Gosnell/HOU/ECT@ECT, Enron Europe
Global Contracts and Facilities, Enron Europe Global CounterParty, Stephanie
Sever/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Stacey
Richardson/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON,
Claudia Clark/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Lisa
Lees/HOU/ECT@ECT, Juana Fayett/Corp/Enron@Enron, Jana Morse/Corp/Enron@Enron,
Trang Le/HOU/ECT@ECT
		 cc:
		 Subject: EOL Credit Responses 10/19/00

There are no EOL approvals for today and tomorrow

Regards,
bd


Louise,

I think what I really wanted to convey is the following:

1. John Grass originally headed up the Wellhead desk and Outsourcing efforts for the producer segment.  I wanted him to do that because of the logistics overlap between purchasing wellhead gas and offering outsourcing services.

2. When the volume of the Wellhead desk started to increase and based on my frustation with the lack of "contract focus" with Ocean Energy, Andex, and other producer outsourcing deals being pursued, I asked Kevin Miller to manage Producer Outsourcing and John Grass to manage only the Wellhead desk.

3. Based on Kevin Miller's memo (attached below), the Wellhead desk reporting into Hunter, I have been questioning the value of a separate outsourcing effort independent of the Wellhead desk.

Regards, Mrha
 -----Original Message-----
From: 	Miller, Kevin
Sent:	Friday, October 12, 2001 4:46 PM
To:	Mrha, Jean
Subject:	Producer One Update

Jean,

Per your request, attached herewith is the rather lengthy Producer One Update/

Thanks ... Kevin


Thanks.

 -----Original Message-----
From: 	Smith, Mike
Sent:	Tuesday, September 25, 2001 4:08 PM
To:	Dasovich, Jeff
Cc:	mday@gmssr.com; Wu, Andrew; Mara, Susan; Higgason, Kelly
Subject:	Re: Risks

I think these are the areas we identified.  Thanks.

From:	Jeff Dasovich/ENRON@enronXgate on 09/25/2001 04:06 PM
To:	mday@gmssr.com@SMTP@enronXgate, Mike D Smith/HOU/EES@EES, Andrew Wu/HOU/EES@EES, Susan J Mara/ENRON@enronXgate, Kelly Higgason/HOU/EES@EES
cc:
Subject:	Risks

Before providing more elaborate descriptions, wanted to try to get a complete--but stripped-down--list of the key risk areas.  Please add anything I may have missed, send it back, and I'll take a shot at fleshing it out.

Thanks,
Jeff

?	Retroactivity (July 1)
?	No contract renewal
?	No incremental "DASR'ing", i.e., adding/subtracting load on the margin (fast food chains, for example)
?	Cost allocation risk (e.g., IOU undercollection, bonds, DWR undercollection gets distributed to DA customers)


Per Mark Ellenberg, there is no need to do anything at this stage.  Just let them expire and they'll be considered unsecured claims.

Steve

 -----Original Message-----
From: 	Germany, Chris
Sent:	Wednesday, January 23, 2002 11:15 AM
To:	Van Hooser, Steve
Cc:	McMichael Jr., Ed; Concannon, Greg; Garza, Maria
Subject:	Tennessee contracts

We have two firm transportation agreements on Tennessee Pipeline.  The long term Boston Gas capacity release and a short term contract which expires on 1/31/2002.  The monthly demand charge on the short term capacity is $15,200.00.

Do we need to reject the short term capacity before it expires?  To my knowledge, we did not flow any gas on this contract for December or January.


Can i bring your male admirer?


My management book is going to take this $1.45 million hit

-----Original Message-----
From: White, Stacey W.
Sent: Thursday, September 27, 2001 5:03 PM
To: Presto, Kevin M.
Subject: FW: New Albany Loss Calc

Kevin,

Please let me know what you have found out about the following costs (see red section below) related to New Albany.  I have to account for these by Monday afternoon (final month-end DPR), at the latest, so I need to know if you are taking the hits in your book or if Lavo is reimbursing you from office of the chair.

Thanks,
Stacey
-----Original Message-----
From: Vos, Theresa
Sent: Tuesday, September 25, 2001 4:30 PM
To: White, Stacey W.
Subject: FW: New Albany Loss Calc

FYI - estimate for Unit 3 Repair $1.45MM.  Also, attached is the $1.1MM loss on sale calc.

theresa

-----Original Message-----
From: Zisman, Stuart
Sent: Tuesday, September 18, 2001 8:42 PM
To: Vos, Theresa; Hoff, Jonathan
Cc: Pierce, Jody; Hardy, Trey; Helton, Susan; Hodges, Georganne
Subject: RE: New Albany Loss Calc

Theresa,

I think that it might make sense to visit briefly about your calculation.  As you mentioned, OEC is supposed to be paid certain amounts and will have various obligations to pay significant portions of the amounts paid to it to third parties.  In addition, the latest estimate of the costs to fix the Unit #3 generator is $1.45 million (without any reimbursement from insurance proceeds).  I just want to make sure that your calculation has everything in it because a few minor things have changed.

Finally, relative to the possibility of a third quarter close, we are at the mercy and timing of the FERC and cannot close without the required regulatory approval even if both Duke and Enron desire to do so.

Regards

Stuart

-----Original Message-----
From: Vos, Theresa
Sent: Tue 9/18/2001 9:54 AM
To: Zisman, Stuart; Hoff, Jonathan
Cc: Pierce, Jody; Hardy, Trey; Helton, Susan; Hodges, Georganne
Subject: New Albany Loss Calc

Stuart/Jon - I have updated the Loss calc for New Albany with actuals thru August.  Forecasted Loss is $1.1MM.  Please let me know if you have any changes to the reserve.  Any OEC costs associated with closing the facility will be accrued in September to the LLC and are not included as part of this calc.  Please call me with any questions.

Trey/Susan - I just found out yesterday that they are trying to close this next week - 3rd quarter deal.

theresa
x58173
<<New Albany Gain Calc.xls>>


Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
----- Forwarded by Carol St Clair/HOU/ECT on 05/19/2000 03:14 PM -----

	Carol St Clair
	05/19/2000 03:14 PM

		 To:
		 cc: Seth Hurwitz/Corp/Enron@Enron, sbrown@velaw.com
		 Subject: Domain Transfer Agreement

Mark:
I just wanted to update you on where things stand currently with respect to
the Domain Name Transfer Agreement that we are negotiating with Risk
Management Solutions, Inc.  After visiting with Scott about the reps and
warranties, he became concerned about the overall scope of the agreement and
in particular, what in addition to the URL domain name (weather-desk.com) EEL
was being asked to transfer and the restrictions that RMS wanted to place on
EEL with respect to this Domain Name and "any variations thereof."   We went
back to RMS and told them basically that all we were willing to do was
transfer them the URL domain name with no strings attached.  I'm not sure
that this will be acceptable to them given their future intentions which is
to acquire from another third party the name "weatherdesk.com" , register it
and use it with respect to the products that they offer.

All of these discussions that we have had over the past week with respect to
our domain name have lead Seth, Scott and I to question what Enron's intent
is with respect to the name or any variations thereof given the fact that
according to Scott we have submitted applications to register similar names.
We were hoping that you could help us answer this question or at least lead
us to the right people that could.  It seems odd that we would be wiling to
transfer this name and yet feel that it is important to pursue registering
these other names.  I look forward to hearing from you.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)


---------------------- Forwarded by Phillip M Love/HOU/ECT on 04/24/2001
10:12 AM ---------------------------
From: Veronica Espinoza/ENRON@enronXgate on 04/24/2001 09:47 AM
To: Janie Aguayo/HOU/ECT@ECT, Diane Anderson/NA/Enron@Enron, Derek
Bailey/Corp/Enron@ENRON, David Baumbach/HOU/ECT@ECT, Jean Bell/HOU/ECT@ECT,
Patricia Boulanger/CAL/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Julie
Brewer/NA/Enron@Enron, Lesli Campbell/ENRON@enronXgate, Celeste
Cisneros/NA/Enron@Enron, Sharon Crawford/CAL/ECT@ECT, Richard
Deming/NA/Enron@Enron, Russell Diamond/ENRON@enronXgate, Cindy
Feldman/CAL/ECT@ECT, Darron C Giron/HOU/ECT@ECT, Veronica
Gonzalez/ENRON@enronXgate, Jeffrey C Gossett/HOU/ECT@ECT, Walter
Guidroz/ENRON@enronXgate, Larry Joe Hunter/HOU/ECT@ECT, Kam
Keiser/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Errol
McLaughlin/Corp/Enron@ENRON, Nidia Mendoza/ENRON@enronXgate, Tom
Moran/ENRON@enronXgate, Bianca Ornelas/NA/Enron@Enron, Leslie
Reeves/HOU/ECT@ECT, Tanya Rohauer/ENRON@enronXgate, Dianne Seib/CAL/ECT@ECT,
Linda Sietzema/CAL/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Ellen
Wallumrod/NA/Enron@ENRON, Melinda Whalen/CAL/ECT@ECT, Tiffany
Williams/NA/Enron@Enron
cc:
Subject: Credit Report--4/24/01


Sara,

Some thoughts on some of these:

Entergy Power Marketing - shouldn't be using anymore - Axia is the mktg JV
for Koch and Entergy
LG&E - hardly ever see trades here anymore; once in a blue moon we see
something - not worth anyone's time
PMI - highly negotiated their paper; not going to touch it
Cross Timbers, Belco, Breitburn, Cabot - all Fred customer's - I would not
hold my breath
Dynegy Canada - should already be on our list
Dynegy - should convert to an ISDA
Reliant - should convert to an ISDA
MSCG - should convert to an ISDA

The rest can wait for another time.

 -----Original Message-----
From:  Shackleton, Sara
Sent: Thursday, March 08, 2001 8:46 AM
To: Rohauer, Tanya; St Clair, Carol
Subject: Non-ISDA Master CP's

Attached is a list of high volume "old" ECT Masters which was obtained from
the confirmation desk.  Many of them appeared on our working list from last
year.

Tanya:  We have enough legal help to pursue the names on the list.  Would you
like to prioritize or amend?

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 03/08/2001 08:42 AM -----

	Larry Joe Hunter 03/07/2001 09:14 AM 	   To: Sara Shackleton/HOU/ECT@ECT
cc:   Subject: Non-ISDA Master CP's

Sara,

The attached is a list of Companies with whom we currently have a non-ISDA
master and with whom we still do a good deal of trades with.  They are listed
in priortity order of which ones we would like to see converted to ISDA .

Thanks,
Joe

 << File: ECT Master CP's priority.xls >>


please print
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 01/10/2001
08:28 AM ---------------------------

Habiba Bayi@ENRON_DEVELOPMENT
01/09/2001 06:31 PM
To: Mike McConnell/HOU/ECT@ECT, Jeffrey A Shankman@ECT, Louise Kitchen@ECT
cc: John Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Envera Press Release For Your Approval

I am Director for International Public Relations, and I work with and report
to John Ambler.  Attached for your review and approval is a press release
that Envera wishes to issue immediately  announcing the participation of
Enron Global Markets as an equity partner and trading member.  Please let me
know your comments by 9:00 am tomorrow (Houston time) Wednesday, January
10.   We have sent it to John Nowlan and have secured his approval.
If you wish to speak to me, please do not hesitate to call me (713) 646-6503.

Thank you for your time and kind cooperation.
Habiba


-----Original Message-----
From: Benninger, David [mailto:DBenninger@reliant.com]
Sent: Tuesday, February 05, 2002 3:18 PM
To: Scott Neal (E-mail)
Subject: FW: PeeWee National League Draft

Scott, I sent this originally to your work e-mail address that I had.
Came back just now.

DB

>  -----Original Message-----
> From: 	Benninger, David
> Sent:	Tuesday, February 05, 2002 3:14 PM
> To:	Scott Neal (E-mail); Mike Delouche (E-mail); George Weatherall
> (E-mail); Doug Dougherty (E-mail); Rod Wiggins (E-mail); Alan Patton
> (E-mail); Mike Gibson (E-mail)
> Subject:	PeeWee National League Draft
>
> Guys:
>
> Thanks again for volunteering to coach/assistant coach a National
> League PeeWee team this year. This year's NL draft for Westchester
> will be held at 'Los Tios' (Kirkwood and Memorial) tomorrow night
> (Wednesday) @ 6:30 pm. We will draft 7 teams from a pool of 80 kids,
> resulting in 4 teams of 11 and 3 teams of 12.  We will use a
> "serpentine" method of drafting after the initial pick order has been
> drawn.  For those of you that attended the tryouts this weekend (and
> for those of you who didn't) attached is an updated list of kids
> available for the NL draft that reflects the kids that were selected
> in the American League draft last night and the NL coach's kids
> (excluded from being drafted). Also, there have been a few kids that
> have been added and subtracted to the list (with comments) that are
> available for the NL draft.  This information is being provided so you
> may focus your attention on the appropriate kids.YOUR DISCRETION WITH
> THIS INFORMATION WILL BE APPRECIATED AS WE ARE NOT PLANNING ON
> NOTIFYING THE KIDS AS TO THE TEAMS THEY'VE BEEN SELECTED TO BEFORE
> THURSDAY AFTERNOON. THANK YOU!
>
> At press time, I am still working to recruit 2 more head coaches. I'm
> currently working my leads, however, if any of you can make any
> suggestions I'd appreciate it. If you have not selected an assistant
> coach (and want to exclude his kid), please let me know ASAP.
>
> Please don't hesitate to give me a call if you have any questions.
>
> Thanks.
>
> David Benninger
> 713/207-1329 (w)
> 713/984-1572 (h)
>
>
>
>  <<Eval Form.xls>>
>
>

 - Eval Form.xls


Hi,

IF YOU'VE ALREADY RETURNED THE FORM, PLEASE IGNORE THIS.

If you have not yet done so, please complete and return the attached
"Transportation Commitment Form."

You can e-mail back to me, fax it at (510) 643-5902, mail it to me or come
into the office and fill out the form here.

Remember this is due on Friday, April 27th.

Thanks.

Seung Lee
Haas School of Business
Evening MBA Program

 - Transportation commitment form.doc


Forgive my ignorance, but I'm assuming that "related party transactions" refers to the Fastow deals?

 -----Original Message-----
From: 	Denne, Karen
Sent:	Monday, October 22, 2001 9:10 AM
To:	Dasovich, Jeff; Mara, Susan
Subject:	FW: Press Release and Statement: Ene Announces SEC Request, Pledges Cooperation

fyi...

 -----Original Message-----
From: 	Philipp, Meredith
Sent:	Monday, October 22, 2001 9:03 AM
To:	Nord, Sue
Cc:	Shapiro, Richard; Palmer, Mark A. (PR); Denne, Karen
Subject:	Press Release and Statement: Ene Announces SEC Request, Pledges Cooperation

Sue-
FYI- we issued the attached release this morning. I know our govt affairs teams will have lots of questions and will probably be asked several questions.  Unfortunately, given the legal nature of this inquiry, we cannot say anything more than this at this time.  We are asking our folks not to engage in conversations or opinion related discussions about this.  Also, Ken Lay will be discussing this at an employee meeting tomorrow morning.  It would be a good idea for everyone to tune in, if possible (or review the playback later in the day.)

I am also attaching a brief INTERNAL Q&A about the SEC request- just to give a little more information.

Thanks-
Meredith

 << File: 70-LJM final ltr.pdf >>  	 << File: LJMmediaQA.doc >>


If you find a product that does, keep me in the loop.  We're always looking
for better ways to do things up here and unless Lexis/Nexis improves, I am
currently not impressed with their product, compared to the old Information
America, which was great before they bought it out and ruined it!  How are
you doing?...you must be a little stressed with this Online project, as well
as others...!


---------------------- Forwarded by Veronica Valdez/HOU/ECT on 03/10/2000
11:08 AM ---------------------------

Dawn Rodriguez@ENRON
03/10/2000 10:49 AM
To: Ted Murphy/HOU/ECT@ECT, Veronica Valdez/HOU/ECT@ECT
cc:
Subject: Project Doorstep

Please find attached the presentations for BA, Sao Paulo, Sydney and
Singapore.
Note:  Bill Bradford, Scott Earnest, and Rudi Zipter may have additional
changes to the Sydney and Singapore presentations.

Thank you
Dawn


HTTP/1.1 200
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P:RQ);,SC:M;,,,,,0,N,ORIGINAL,,,QUEUED,MAILTO:mark.guzman@enron.com;,,20010412
033801PD,20010412040800PD,20010412033801PD,,,,,Carolyn
Bonari,(775)834-4180,(775)834-4296,sppc.oasis@sppc.com,Don
Norman,,(503)464-3740,lester.rawson@enron.com,,,,


Em, you know I'm in on this one.  It's been far too long since we've had a
true NB weekend.  Unfortunately (although not surprisingly) it appears our
erstwhile friend Alan will claim any excuse, no matter how unappealing, to
avoid singing show tunes around the camp fire - your voice will be missed.
For the rest of you guys, I hope we can muster a good turn-out as I am in
desperate need of over analysis in regards to the problems of the world as
well as ourselves whilst in a drunken stupor.  Nobody does it better...

Susan

	Enron Capital & Trade Resources Corp.

	From:  "Emily Hillegeist" <ehillegeist@hotmail.com>
10/09/2000 03:52 AM

To: sonderfan@hotmail.com, sscott5@enron.com, lgillet@enron.com,
kaseywalker@mindspring.com, elaina5@hotmail.com, mjmiller23@hotmail.com,
przybyla1@go.com, bodezoffa@hotmail.com, katyhester@hotmail.com
cc:
Subject: yeeeeha

ok- i'm going to remain skeptical and cautious about this til i get more
feedback (yes, kk, i know where you stand!)  who is interested in spending
this new years in NB @ the river and going to gruene hall?  need to commit
fairly soon, as there have been 'bites' from other interested parties, and
we'll just rent it out if interest is low.....those who haven't responded,
pls drop me a line, make suggestions.....can't have TOO many people due to
size restrictions, but obviously significant others/spouses are welcome.  am
sure i'm forgetting a key person or 2 from this email- let me know who!
don't want to hurt feelings (you KNOW how sensitive I am....)but want to
make sure we have a 'cohesive' group.  keep me posted.....au revoir from the
land of bangers and mash....
e
_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

Share information about yourself, create your own public profile at
http://profiles.msn.com.


At the request of Andy Zipper, I am attaching our proposed form of
Confidentiality Agreement.  Please call me at (713) 853-3399 if you have any
comments or questions.


Hi

Looking forward to seeing everyone - a babysitter for Lucy, Ella and Sam
sounds great.  Let me know if you need me to do anything.


Monika Causholli
2240 North Boulevard #5205
Houston, Texas 77098
                      (713) 807-1039
mcausholli@hotmail.com
EDUCATION
BS in Financial Services/Business Administration, Oregon State University, Corvallis, Oregon
Overall GPA 3.91/4.00. Minor: Political Science/International Affairs.

WORK EXPERIENCE

                Financial Analyst/Researcher                Enron North America/Industrial Markets
                                                                                Houston, TX 6/01- Present

?	Analyzed the financial condition of pulp and paper companies by carefully reading through their financial statements and drawing the conclusion of their financial health. Based on the results of the analysis, prepared company reports for the origination team.
?	Supported the team of originators and traders by gathering data on the pulp market, preparing presentations, doing analysis on the prices and other market variables. Wrote a weekly newsletter with the most important information that included a market commentary. Built and completed the spreadsheets that contain all the market data for pulp. The spreadsheets helped the spot/financial traders to evaluate market conditions and make trading decisions.

               Real Time Trader/Analyst                     Enron North America
                                                                                Portland, Oregon 6/00-6/01

?	Researched the variables that affect the hourly electricity market including temperatures, planned and forced outages of generating units, loads and CISO expost prices resulting in an informed opinion about that day's trading options.
?	Looked for opportunities to create value based on the research. Raised up to $100,000 a day by following the market closely, taking advantage of the arbitrage opportunities between the different markets, and making use of transmission available to send power to various points.
?	Ran the El Paso Electric Utility during the off peak hours and weekends by matching the load (demand) with the supply and making the necessary decisions to run the system reliably by following the WSCC requirements on spin and nonspin requirements.

               Summer Intern                                       Enron Capital & Trade
              Analyst Program	                       Portland, Oregon 6/99-9/99

?	Researched and graphed the historical temperatures for the Pacific Northwest, the Desert Southwest, and Rocky mountain and tried to find the correlation between the temperatures and energy load (demand).
?	Co-designed the load-forecasting model for the Pacific Northwest, Desert Southwest and Rocky Mountains in a course of three months.
?	Compiled the daily information for the term and cash traders including the historical temperatures graphs for California, daily forecasted load, and gas prices.

             Financial Analyst 		         Edicom sh.p.k.
             Assistant		                       Tirana, Albania 6/98-9/98

?	Calculated revenues, expenses, interest payments and cash flows for over ten investment projects including apartment buildings and a business center.
?	Translated business letters including memos and proposals from Italian/Albanian to English.

COMPUTER SKILLS
 Software: Proficient in MS Word, PowerPoint, and Excel

FOREIGN LANGUAGES
Albanian    Native Fluency
Italian    Near-Native Fluency

MAIN STRENGTHS:  Good analytical skills, detail oriented, a hard-worker, ambitious, a fast-learner, good writing skills, enthusiastic.


---------------------- Forwarded by Shona Wilson/NA/Enron on 03/06/2001 09:30
AM ---------------------------
From: Frank Hayden/ENRON@enronXgate on 03/05/2001 06:38 PM
To: LaCrecia Davenport/ENRON@enronXgate, Bharat Khanna/ENRON@enronXgate
cc:  (bcc: Shona Wilson/NA/Enron)

Subject: FW: TECO

This deal hit our radar screen.. Please review and let me know if there are
any process issues and potential market issues.
Thanks,
Frank

 -----Original Message-----
From:  Ahn, Christopher
Sent: Friday, March 02, 2001 4:34 PM
To: Portz, David; Zisman, Stuart; Cross, Edith; Wiesepape, Jason; Sacks,
Edward; Hayden, Frank; Aucoin, Berney
Cc: Sukaly, Bruce
Subject: re: TECO

Please find attached below a presentation explaining the communication
process with TECO


After reviewing the list of issues to be addressed, it looks like we would want to keep an eye on this proceeding but I don't think we will need to take an active position. If you see anything that may directly impact the value of our capacity or access to our system through PG&E then let me know. Thanks.

 -----Original Message-----
From: 	"Dan Douglass" <douglass@earthlink.net>@ENRON
Sent:	Tuesday, February 26, 2002 11:22 PM
To:	Kilmer III, Robert; Harris, Steven; Hass, Glen; Rapp, Bill
Cc:	Gregg Klatt
Subject:	Gas Accord Scoping Memo Issued

The Commission issued its Scoping Memo today in the PG&E Gas Accord II  proceeding.  Attached is a memorandum that describes the significant  aspects of the ruling.  After you have had a chance to review it, we look  forward to discussing what role Transwestern may wish to take in this  proceeding.
Dan

Law Offices of Daniel W. Douglass
5959 Topanga Canyon Blvd.  Suite  244
Woodland Hills, CA 91367
Tel:   (818) 596-2201
Fax:   (818) 346-6502
Cell:  (818) 422-2016
douglass@energyattorney.com
 - 02-26-02 Memo re Scoping Ruling.doc << File: 02-26-02 Memo re Scoping Ruling.doc >>


----- Forwarded by Sheila Tweed/HOU/ECT on 02/16/2001 10:46 AM -----

	Kay Mann@ENRON
	02/16/2001 10:35 AM

		 To: Sheila Tweed/HOU/ECT@ECT
		 cc:
		 Subject: GE Form Agreement

Hot off the presses.  I'm looking at it now.
---------------------- Forwarded by Kay Mann/Corp/Enron on 02/16/2001 10:40
AM ---------------------------

"Thompson, Peter J." <pthompson@akllp.com> on 02/16/2001 10:14:39 AM
To: "Kay Mann (E-mail)" <kay.mann@enron.com>
cc: "Pipitone, Paul" <paulpipitone@akllp.com>, "Cobb, Chris"
<chriscobb@akllp.com>

Subject: GE Form Agreement

      Attached please find a draft of the  GE Form Agreement (the fourth
document below), as well as a blackline (third document below) showing
changes made from the Coyote Springs Agreement that was used a the basis
for the Agreement.  In addition, please find the exhibits to the Form
Agreement (first document below), as well as a blackline showing changes
to the Coyote Springs Exhibits (second document below).  If you have any
questions or comments, do not hesitate to contact me.
 <<Exhibits to Enron Turbine Form Agreement 2/16/01.DOC>>  <<CRO-
Exhibit to Enron Turbine Form Guaranty Versions 1 to 3.DOC>>  <<CRO- GE
Agreement Versions 1 to 3.DOC>>  <<GE Agreement.DOC>>
 - 01.DOC
 - CRO- Exhibit to Enron Turbine Form Guaranty Versions 1 to 3.DOC
 - CRO- GE Agreement Versions 1 to 3.DOC
 - GE Agreement.DOC


----- Forwarded by Cindy Derecskey/Corp/Enron on 08/23/2000 12:15 PM -----

	Katy Lomax@ECT
	08/23/2000 10:32 AM

		 To: Jackie Gentle/LON/ECT@ECT, Eva Hoeffelman/LON/ECT@ECT, Mark
Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Cindy
Derecskey/Corp/Enron@Enron, Ann M Schmidt/Corp/Enron@ENRON
		 cc:
		 Subject: German Media Monitoring

Please find attached the following article/s:

"Deregulation: Blessing or just an illusion" - Kolnische Rundschau

"Electricity becomes scarce and expensive in the land of Thomas Edison" -
Stuttgarter Nachrichten

"Gridlock on the powergrid" - Business Week

Kind Regards,
Katy Lomax


elizabeth gill
160 Santa Marina Street
san francisco, CA 94110
lgill@wafs.com

To Mr. Ken Lay,

I'm writing to urge you to donate the millions of dollars you made from selling Enron stock before the company declared bankruptcy to funds, such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills.  Enron and you made millions out of the pocketbooks of California consumers and from the efforts of your employees.

Indeed, while you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out.  And Enron made an astronomical profit during the California energy crisis last year.  As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt.

The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

Sincerely,

elizabeth gill


Start Date: 4/22/01; HourAhead hour: 21;  HourAhead schedule download failed.
Manual intervention required.

    LOG MESSAGES:

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Attached is the latest draft of the letter to Wildhorse concerning the Dakota
production.  Some revisions have been made based on our meeting Tues. and Ken
Krisa's comments to the earlier version.  Please review and provide any
comments.


Attached are the board minutes for the months of July and August.

Thank You


Please call me with any comments or changes.


---------------------- Forwarded by Judy Townsend/HOU/ECT on 12/21/2000 11:14
AM ---------------------------

Craig Breslau
12/19/2000 01:24 PM
To: Judy Townsend/HOU/ECT@ECT, Victoria Versen/HOU/ECT@ECT
cc: Lucy Ortiz/HOU/ECT@ECT
Subject: Ormet

Could you please send the service agreement into Koch for the Ormet
transaction.  This memo that I wrote to Scott details the rates that we have
negotiated with Koch.  Koch has to post our deal for five days, so could you
please try to send it out today if at all possible.  I am also sending you
the draft letter agreement that Koch sent to us which we will also need to
execute.  We will also need to put an IT agreement in place with Koch.  They
have offered the same discounted rates on an IT basis for any volumes above
the 15,000/d of FT.

Also, could you please arrange to put in place an IT agreement on Cypress for
delivery to Ormet Aluminum's Burnside,LA

Thanks for your help.

Craig
---------------------- Forwarded by Craig Breslau/HOU/ECT on 12/19/2000 12:35
PM ---------------------------

Craig Breslau
11/16/2000 04:37 PM
To: Scott Neal/HOU/ECT@ECT
cc:
Subject: Ormet

Scott:

Ormet's Burnside,LA Aluminum refinery is dually connected to Koch and Cypress.
The transport rates that  Koch has quoted for FT to Ormet are as follows:

From Bridgeline/Paradis or LRC/ Paradis .03 demand charge

from Venice     .05 demand charge

from the Mobile Bay pooling point on Koch .045 demand charge
(if we buy upstream of the pooling point then we would also pay a .0246
gathering fee on Mobile Bay)

In addition we will be charged .0022 ACA from any of these receipt points.

The fuel rate is 1.6%.  This will be passed on to Ormet.

Koch has agreed that any volumes in excess of the 15/d of FT will be at the
same discounted rate, but will flow on an IT basis.  If this IT is cut, we
still must use best efforts to transport from other receipt points on Koch or
on Cypress.  Ormet pays all additional transport costs.
Additionally, we have a price re-opener if Koch changes from monthly
balancing at any point during the contract term.
I am working with Koch to get secondary delivery points on Koch in the event
that the desk wants to take the gas elsewhere (i.e. if Ormet doesn't need the
gas or if you choose to deliver off of Cypress).  If you have any preferences
for alternate delivery points, please let me know.

As I mentioned, we  have already quoted NYMEX + .055 as the all-in delivered
price to Ormet.

Ormet would like to come to agreement on this transaction today (his wife is
due any day so he will be out of the office starting tomorrow).  They are one
hour ahead of us so your comments are greatly appreciated.

Thank you for all of your help on this deal.

Craig


ISDA PRESS REPORT - JUNE 4, 2001

RISK MANAGEMENT
Basle II - IFR
Australia's APRA says Basel home loan rules unfair - Reuters
Asia May Not Be Reader For New Basel Pact - Ctrl Bankers - Dow Jones
Basel Accord Gets Chilly Reception - The Wall Street Journal
Derivatives industry - IFR

CREDIT DERIVATIVES
Convertible default swap proposal near - IFR
Credit Derivatives Market To Hash Out Successor Issues - Dow Jones

ENERGY
California Clash Over Power-Grid Control - The Wall Street Journal

LATIN AMERICA
Two banks pull out of Argentina debt swap over SEC rule fears - Financial
Times

OTHER
Newer options - Business Standard

Basle II
Financial Times - June 4, 2001

The process of refining the Basle capital adequacy rules is drawing to a
close. A revised set of rules will be agreed by the end of this year, to
take effect in 2004. There remains broad agreement that it is about time to
update the original 1988 formula for calculating how much capital a bank
needs. Yet there is enough disagreement on the philosophy and details of the
new proposals to suggest that their implementation will be difficult and
expensive. Perhaps this will prove to be the spur the banking industry
needed to start spending on information technology once again.

The old rules are straightforward enough. Minimum capital requirements are
set as a percentage of each bank's assets, with some broad categories of
loan, such as mortgages or government debt, assigned reduced weightings. The
new rules are a considerable improvement in this area, tying capital
requirements much more closely to the actual risk posed by individual loans.
Oddly, though, exceptional treatment is preserved for German real estate
loans. But if the measurement of credit risk becomes more sophisticated, the
addition of other, worse defined categories of risk - notably operational
risk - restores much of the crudeness of the original agreement.

It would be worth taking more time to reach agreement on the right way of
measuring operational risk. But political realities, notably the length of
time needed to get an updated European capital adequacy directive to
incorporate the new rules, mean that this is unlikely to happen. The result
is that Basle II will prove to have a much shorter shelf life than Basle I.

Australia's APRA says Basel home loan rules unfair
Reuters - June 3, 2001
By Marion Rae

SYDNEY, June 4 (Reuters) - Australia's bank regulator said on Monday it
believed proposed reforms to global capital adequacy requirements by the
Basel Committee on Banking Supervision could introduce competitive
inequalities in the Australian market. In particular, proposals for capital
backing for the residential mortgage market, a dominant and low risk area of
business for Australian institutions, needed to be modified, the Australian
Prudential Regulation Authority's (APRA) general manager of risk analysis
Wayne Byers told Reuters.

The Basel committee has proposed that exposures secured by residential
property attract a 50 percent risk weighting - the same as the current
weight - but large institutions able to follow new internal ratings-based
guidelines would be able to reflect the very low housing loss experience in
Australia with a cheaper risk weighting of five to 10 percent.

Within the proposed accord there are three methods by which banks can
calculate capital charges for credit risk - a standard method which is a
variant on the current method, and a further two methods, one simple and one
advanced, where banks use their own internal ratings systems as a means of
allocating capital.

"Overall the more advanced the method you use, there are some quite
significant capital savings," Byers said.

"The more sophisticated methods aren't restricted to big banks but obviously
they have the knowledge, the resources and the data and that means that
they're more likely to pursue them."  As a percentage of total assets as at
March 2001, APRA said housing loans amounted to an average of 38 percent for
Australia's major banks, including National Australia Bank Ltd, Commonwealth
Bank of Australia, Westpac Banking Corp and the ANZ Banking Group Ltd, and
43 percent for regional banks.

BIG BANKS STAND TO GAIN

"Given that the minimum requirement is an eight percent capital ratio, banks
have to have A$4 - which is 50 percent - for every A$100 of housing loans
they make," he said.
"It would stay the same for those banks that stay on the simplest method but
for those banks which move on to methods where they use their own internal
measures of risk, a much lower number is produced," he said.  "They're based
on an international average but Australian data shows it up to be a much
lower risk activity," he said.

APRA has proposed lowering the standardised housing risk weighting to 20
percent or allowing individual countries to allow a weighting lower than
Basel requirements where historical loss rates and market characteristics
made this appropriate.  "I don't think the committee envisaged the big gaps
that have turned out so I would expect they would certainly look to reduce
those gaps between the different methods. I'm less sure that they will deal
with product-level issues," Byers said.

"Housing loans in Australia are a very low risk activity, they're not
necessarily that in other markets where housing prices are volatile and
where banks don't necessarily use conservative LVR (loan-to-value) rates,"
he said.  Capital adequacy rules in Australia required LVRs of less than 80
percent, unless backed by mortgage insurance.  "It may be that we have to do
something ourselves to tackle that issue. The final proposals will be out at
the end of the year and we're waiting to see how they look before we commit
ourselves to any action," Byers said.

Asia May Not Be Ready For New Basel Pact - Ctrl Bankers
Dow Jones International News - June 3, 2001

SINGAPORE (AP)--Asian central bankers Saturday said their countries may not
be ready for the Bank of International Settlements' new Capital Accord
planned for 2004.
"In particular, infrastructure and internal capacities in some member
countries could limit their ability to fully implement the accord by then
(2004)," the Governors of the Southeast Asian Central Banks said in a
communique after a two-day meeting in Singapore.

Asia's 1997-98 financial meltdown rocked banks and economies worldwide,
drawing intense international pressure for reform among Asian financial
institutions.  The Basel -based Bank for International Settlements, or BIS,
hopes to implement by 2004 its new Capital Accord, which would give banking
regulators more power to assess whether banks have the capital to weather
bad loans.

The BIS acts as the banker for central banks, providing financial services
for managing their external reserves.  The new Basel accord poses challenges
to Asian banks and regulators, Singapore's second minister for finance Lim
Hng Kiang said earlier in opening remarks at the Singapore conference.

Asian banks "would have to develop more sophisticated risk management
capability" under the new accord, and regulators would "need to build up
technical knowledge" to handle the accord, Lim said in the opening speech.

The Asian central bankers also said in their communique that there is a need
to use policies that prevent "excessive exchange rate volatility," which can
"have severe consequences for small, open economies."  Central bank
representatives at the Singapore meeting came from Indonesia, South Korea,
Malaysia, Mongolia, Myanmar, Nepal, the Philippines, Singapore, Sri Lanka,
Taiwan and Thailand.  The meeting also included observers from Cambodia,
Fiji, Laos, Papua New Guinea, Tonga and Brunei's Ministry of Finance.

Basel Accord Gets Chilly Reception
The Asian Wall Street Journal - June 4, 2001
By Jason Booth

The international banking community has given its opinion on the new Basel
Capital Accord. But it isn't encouraging.  Over the last five months,
bankers from around the world have been submitting views on the accord,
dubbed Basel 2, which is designed to set the benchmark for bank operations
and risk management. By replacing the original 1988 Basel Accords, the new
agreement aims to promote better allocation of the money banks must put
aside for bad loans through the use of more scrupulous risk analysis.

On Friday, reaction to the new pact was made public on the Web site of the
Bank for International Settlements. The Basel, Switzerland, organization,
which promotes cooperation among central banks, authored the accord. Big
banks called the plan too conservative, while smaller institutions said it
will increase their cost of capital and warned it could deepen the divide
between rich and poor nations. Most felt the regulations were onerously
complex and that the planned 2004 launch date was too ambitious.

The Institute of International Finance, a private association of the world's
biggest banks based in Washington, weighed in Friday with perhaps the most
influential assessment. "The proposal includes at every step of the
credit-assessment process an element of conservatism," said Jan Kalff,
chairman of the IIF steering committee on Basel 2 and former chairman of ABN
Amro Bank, who was on a visit to Hong Kong.

While the risk-analysis procedures mandated by Basel 2 might lower the
amount of money some banks need to set aside for bad loans, those savings
would be offset by added costs, the IIF said. The hiring and training of new
staff, new software and a general slowing down of the lending process would
generate those costs.

"Some bankers have mentioned to me that the costs are going to be of the
same magnitude as Y2K implementations. But Y2K was only one-off, this will
be a year after year costly thing," said Mr. Kalff. The IIF report estimated
a total cost to 30,000 banks of $2.25 trillion over five years. Mr. Kalff
added that such costs wouldn't be incurred by nonbanking financial
institutions, giving them a competitive advantage against traditional banks.

Asian central bankers Saturday said their countries may not be ready for the
BIS accord. "In particular, infrastructure and internal capacities in some
member countries could limit their ability to fully implement the accord by
then (2004)," the Governors of the Southeast Asian Central Banks said after
a two-day meeting in Singapore.

Meanwhile, smaller banks, especially those in the developing world, had
other concerns over the Basel 2 draft. "The proposed approach will result in
fostering or even deepening the division into highly developed and
underdeveloped countries, both with respect to external funding and capital
costs," wrote Leszek Balcerowicz of the Polish Commission for Bank
supervision.

The problem for emerging-market banks is that their client base typically
has lower credit ratings than those of major banks do. As such, under the
new rules, these banks will have set aside a greater portion of their
capital to cover possible losses. If they don't, they will be punished by
higher costs when they borrow money in international capital markets.

And borrowers, especially smaller and less credit-worthy ones, will likely
pay the price with higher capital costs. Again, less-developed nations are
likely to suffer most, since higher capital costs could slow development of
higher-risk small and midsize enterprises.

One complaint shared by big and small banks was Basel 2's insistence that
banks be more widely reviewed by credit-rating agencies to determine asset
risk. In addition to expressing concerns over the added costs of this
policy, some felt it would be counterproductive.

"The increasing reliance on external rating agencies would undermine the
initiatives of banks in enhancing their risk-management policies and
practices and internal control," said the Reserve Bank of India.  There was
also a general call for more physical collateral, such as property and
accounts receivable, to be factored into banks' credit risks. "There is
ample evidence to show that such collateral is effective in mitigating
risk," said Mr. Kalff of the IIF.

In light of such wide-ranging concerns, many felt that it would be difficult
to meet Basel 2's scheduled 2004 launch date. The IIF felt that parts of the
accord would require at least 18 to 24 months of further negotiations, even
though the BIS has been hoping to finalize the accord by the end of this
year. Developing nations suggested that the accord be phased in over a
longer period of time.  In the words of Adrian Byrne of the Central Bank of
Ireland: "This time frame is still too short given the range of information
not available."

Derivatives industry
IFR - June 2, 2001

Derivatives industry officials are optimistic that some of their criticisms
of the draft of the new Basle II Capital Accord will be taken on board by
regulators. They believe there is a good chance that their input on the
calibration of the internal ratings-based function will result in a change
in the accord, for example.

However, there is no sign yet that their input on the "W" factor charge on
credit derivatives will result in a revision.  The Basle Committee on
Banking Supervision will next month release exposure drafts on operational
risk and the internal ratings based approach for treatment of equities,
retail portfolios, project finance and securitisation as areas for
additional consultation and interim papers for its new global capital
adequacy rule proposals, dubbed Basle II.  "These were all green areas when
the consultation came out in January," said a Bank for international
Settlements official.

It still remains unclear whether the "W" factor will be eliminated, he
noted. "There are some strong proponents for it on the committee. So, it
depends on the nature of the comment letters," he said.  William McDonough,
the chairman of the Basle Committee, is widely viewed as having backed away
from the keeping the "W" charge in the new accord, but Oliver Page - the
head of regulatory policy at the UK Financial Services Authority and a
member of the committee - is believed to remain a proponent. Page said that
he is keeping an open mind about the issue, however. "This is a genuine
consultation process, we have got to weigh up the contributions," he said
last Friday, the day after the deadline for comments on the new accord
passed.

The "W" charge is a 15~~ levy on credit derivatives when they are used for
credit risk mitigation by banks, which contrasts with the zero weighting
given to guarantees.  The BIS's strategy of weeding out measures that
require more attention is aimed at enabling the regulator to push ahead with
certain issues and finish formulating its positions on others, while keeping
to its 2004 deadline for implementing the new rules, the BIS official said.
"The last thing that they want to do is push ahead with everything and then
reopen structural issues," said Simon Gleeson, a partner at Allen & Overy in
London. On the flip side, keeping everything on hold would make it
impossible for it to work within its deadline, he added.

"As far as the European Union is concerned, the problem that they face is
the timing. It took seven years to get [the last Basle Accord] through and
into directive form. The idea that the EU's implementation will get finished
by 2004 is absurd," a derivatives industry consultant in London said.  The
challenge is exacerbated by the fact that when the EU writes directives they
apply to all financial institutions, not just internationally active banks.
This means that in addition to implementing the new rules it will have to
draw lines between institutions and decide how to ensure that the system
does not put small and medium-sized institutions at a disadvantage.

"The Fed wants to start [enforcing new rules] as soon as possible. If they
do, we will get a situation in which we have two completely different
capital adequacy systems," the consultant added. The start of 2004 was set
as a compromise due date between the US Federal Reserve and the UK's
Financial Services Authority for enforcing the new rules. Basle II's initial
industry comment period closed last Thursday.

The International Swaps and Derivatives Association focused its criticisms
on three areas. It argued that the introduction of rigid capital floors
would increase costs, that the proposed operational risk and "W" factor
charges are arbitrary, and that the proposed calibration of the internal
ratings based function does not reflect market practice.

"The accord takes significant steps toward defining an approach to setting
banks' capital requirements, which is risk-sensitive, granular and flexible,
yet there are several areas that are inconsistent with the overall goals of
the accord and existing bank best practices," said Emmanuelle Sebton, head
of risk management for ISDA.

ISDA officials are due to meet the FSA's Page and other members of the
capital group within the Basle Committee in New York in mid July, at which
stage ISDA will press the case for abandonment of the 15% "W" factor charge
on use of credit derivatives.

Convertible default swap proposal near
IFR - June 2, 2001

An informal working group within the International Swaps and Derivatives
Association's credit derivatives market practice group is nearing the
completion of a preliminary proposal aimed at creating standardised
documentation for swaps based on convertible bonds and zero coupon
convertible issues.

The surge in convertible and zero coupon convertible issuance this year and
the trend towards stripping the equity and credit components out of large
issues are heightening the need for the documentation.  "Right now, there
isn't a standard. That's the problem. Each firm uses different language.
Resolving this will enhance liquidity in an already well-functioning
market," said Derek Smith, head of credit derivatives trading at Goldman
Sachs in New York.

Credit derivatives market participants would benefit from standardisation,
as it would improve liquidity. "If you strip a convertible with one dealer
and want to unwind with another dealer you might come across dealers that
don't like the documentation. So, they are unlikely to bid, and you are
forced to go back to the first dealer," said John Tierney, head of credit
derivatives research at Deutsche Bank in New York.

Even though only a portion of investment grade convertibles are stripped and
stripping typically covers between a third and a quarter of a stripped
convertible, the activity still generates vast amounts of credit default
swaps business.  On a US$3bn issue, for instance, in excess of US$750m can
be stripped, which is time consuming to offset, given that credit default
swaps usually trade in US$10m blocks. Standard documentation is also needed
because stripping often causes a 30-50% jump in the price of the issuer's
single name credit default swap.

"It's more technical than controversial. Creating documentation that works
is the challenge," said Smith. Before the group's proposal is available for
general use, it will need to be approved by ISDA's documentation committee
and vetted by the industry.

Credit Derivatives Market To Hash Out Successor Issues
Dow Jones - June 4, 2001
By Joe Niedzielski

NEW YORK -(Dow Jones)- Credit derivatives professionals are working on a
solution to the vexing question of how these contracts should be treated
when companies spin off units or restructure into separate entities.  These
demerger or successor issues are expected to take some months to resolve and
the International Swaps and Derivatives Associations new subcommittee of the
credit derivatives market practice group has given the question priority
among a host of other long-term issues.

Adding some momentum to the discussions is the pending restructuring of AT&T
Corp. (T). AT&T is among the more actively-traded credits in the single name
credit default swap market.  These over-the-counter derivatives contracts
let buyers transfer the default risk on loans or bonds by selling it to a
third party for a premium that's derived from the notional amount of the
contract.

AT&T's plan, first unveiled last fall, would split the company into a
business and consumer long-distance unit, as well as broadband and wireless
units. AT&T is expected to go ahead with the plan in the coming months.
"People seem motivated about resolving this," said one credit derivatives
official in New York. "As AT&T gets closer, I would imagine that would
galvanize people further on this side of the Atlantic."

When companies split up, spin off units, or "demerge," the successor
entities are allocated different portions of the previous entities
outstanding debt obligations and publicly-issued bonds.  ISDA's 1999
document governing credit derivatives essentially calls for the default swap
to follow the entity that takes on the majority of the obligations in a
merger, consolidation, or transfer.  This "all or substantially all" clause
in the documentation, though, can be interpreted differently in other legal
jurisdictions. And that could pose a problem if a market participant has
contracts on a particular credit with U.S. and English counterparties.

Still Fallout From National Power

A number of market participants are attempting to negotiate a resolution to
default swaps written on the U.K.'s National Power PLC, which demerged late
last year.  In the split, Innogy Holdings PLC (IOG) received the former
company's U.K.-based power and generating assets. National Power changed its
name to International Power PLC (IPR) and took the international power
assets.

Innogy Holdings was also allocated with about 60% of the former company's
debt obligations and about 88% of its public bonds. International Power kept
about 40% of the former company's debt obligations and about 12% of its
public bonds.  The credit derivatives official in New York said there are
theoretical ways of hashing out the successor issue. One possible approach
would be to have multi-name default swaps after a demerger for participants
that held contracts on the single name corporate prior to the demerger.

Essentially, the trade would be split into a series of trades on the
demerged entities, though it would likely be difficult to calculate the
relevant notional amounts that should be allocated among those new default
swaps, this person said.

Two banks pull out of Argentina debt swap over SEC rule fears
Financial Times - Jun 2, 2001
By Thomas Catan

Two investment banks unexpectedly pulled out of managing Argentina's record
debt exchange yesterday because of worries they may have violated US
securities regulations, placing at risk millions of dollars in fees.
On the advice of their lawyers, Deutsche Bank and ABN-Amro yesterday
withdrew from a group of 12 banks chosen by the Argentine government to
manage the multi-billion dollar transaction. It is understood that Banco de
Galicia, an Argentine bank, will also exclude itself from offering the bonds
in the US.

People close to the banks said company lawyers had become concerned that
some pieces of research in the run-up to the transaction may have breached
US securities regulations. A spokesman for the Securities and Exchange
Commission in Washington would neither confirm nor deny it had warned
investment banks.

In an effort to buy time to restart its struggling economy, Argentina hopes
to exchange bonds coming due before 2006 for longer-dated paper. The
government stopped taking offers from bondholders yesterday and is due to
announce the results of the massive operation on Monday. Market analysts
expect the government will succeed in swapping around Dollars 20bn, by far
the largest transaction of its type.

If that is the case, the group of investment banks would earn Dollars 110m,
which is considered to be a juicy fee for relatively light work. However,
concerns that the "Chinese wall" between analysts and sales people had been
breached may have cost several banks their share of the fees.

Some bankers suggested it was not the SEC that had raised the initial
objection, but rather investment banks threatening each other to maximise
their proportion of the fees. According to an Argentine official, the
problem first came to light on Thursday after questions were raised about a
research report by Deutsche Bank's emerging markets analysts.

California Clash Over Power-Grid Control
The Wall Street Journal - May 4, 2001
By Rebecca Smith

As California politicians wade deeper into the energy crisis, the state's
electric-grid operator appears headed toward a showdown with federal energy
regulators over whether its board is independent enough.  The California
Independent System Operator Friday bowed to pressure from the Federal Energy
Regulatory Commission and submitted its qualifications to continue as a
federally sanctioned grid operator. But the tardy filing is almost certain
to be challenged by federal regulators and market participants because the
ISO's governance structure has strayed from a "bedrock requirement" that it
be "independent of control by any market participant."

The market participant casting the long shadow is the state of California.
Since January, when the state of California began buying huge sums of
electricity on behalf of its nearly broke utilities, the ISO has been under
pressure to give state officials preferential treatment and unique access to
market-sensitive information. Its chief operations officer, paid $245,000 a
year according to the most recent IRS filing, is on indefinite loan to the
governor's office where he is working as an energy adviser.

This politicization of the ISO is significant because the organization's
purpose is to run a market for power needed to keep the electric system in
balance and to give buyers and sellers impartial access to the power lines
on which they depend to move electricity. Unlike other commodities,
electricity can't be stored. Transactions, therefore, depend completely on
instantaneous access to the electric superhighway of high-voltage lines. The
FERC worries that a loss of political independence by the ISO will further
degrade the state's already dysfunctional energy market.

The FERC hasn't formally accused the ISO of acting improperly, but it is
clear that a wall between the state and the ISO that once was solid has
become permeable. Last month, the ISO notified the FERC that the state of
California had asserted "it must have access to the ISO control room floor"
and "nonpublic information" as a "necessary condition" of continuing to buy
power, even though such preferential access violates ISO rules. But without
the state to back power purchases -- it has spent nearly $8 billion on
electricity since January -- the ISO's market would collapse and blackouts
and chaos likely would ensue.

The governance issue, which may appear esoteric, actually cuts to the heart
of the power crisis in California. State officials feel they have ceded too
much control to the FERC, which they accuse of shirking its duty to protect
consumers. As a consequence, the state has forced its way into the inner
workings of the formerly arcane ISO, a public-benefit corporation formed
three years ago amid California's push to deregulate its electricity market.

In January, the state legislature authorized the governor to eject a
FERC-approved board of directors and hand pick his own five-member ISO
board. The state attorney general ordered old board members to resign or
face personal fines of $5,000. Currently, one ISO board member is a former
member of the governor's staff, while another, on the governor's behalf,
negotiated the proposed purchase of utility transmission assets by the
state, all the while serving as chairman of the supposedly independent
board.

The ISO's chairman says changes in the board structure have made the ISO
more answerable to the citizenry and "efficient." Michael Kahn, who is a San
Francisco attorney, added that the governance structure had to change to
reflect the fact that "we're in a state of emergency."

In its filing Friday, the ISO took the position that the tighter
relationship between the ISO's board and the state doesn't violate the
FERC's requirement that ISO boards be free of control by market
participants. Even though the state has been "required to provide financial
support," the ISO asserts, this "participation does not make ... the State a
market participant." Many market watchers scoff at that contention.

"Inevitably, this will lead to a showdown," said N. Beth Emery, former
general counsel of the ISO and now an energy attorney for Ballard, Spahr,
Andrews & Ingersoll in Washington, D.C. "Clearly, the ISO is in violation of
the independence requirement."

But the FERC doesn't have many tools for enforcing its vision of autonomy.
That may explain why it has failed to intervene. It can order the ISO to
make board changes, for instance. But if it refuses, there may not be much
the FERC can do except threaten to rescind the ISO's operating tariffs.
That, of course, is the opposite of what the FERC wants to do, which is
encourage creation of multistate grid organizations free of any political
favoritism.

But California's angry isolationism appears to be growing. Gov. Gray Davis
said the ISO's filing ensured the state will "maintain control of our own
energy destiny and not be subject to the whims of federal regulators or the
interests of other states."

To date, the FERC has been steadfast in its resolve to make regional grid
operators independent organizations, free of control of utilities and power
marketers. It has rejected other grid-operator proposals because it felt
utilities that owned the power lines were attempting to retain too much
control. But Order 2000, the landmark decision issued in December 1999 that
promoted the creation of independent grid runners throughout the nation,
never contemplated a state government assuming such a huge role in a market
as has occurred in California.

If anything, that role is likely to increase. Not only is the state of
California the biggest power buyer in the nation now, but it has formed a
power authority that intends to build and operate generating plants. In
addition, Mr. Davis is promoting a plan to buy the transmission systems of
the state's investor-owned utilities. As such, a new vertically integrated
utility is forming that could be larger than any the nation has seen since
the "power trusts" of the 1930s were broken apart by Congress.

It is rife with conflicts of interest. The ISO's drift has created a fissure
in the solid support it enjoyed from the state's big utilities that
transferred control of their transmission systems to the ISO in 1998. PG&E
Corp.'s Pacific Gas & Electric Co. unit, which is in bankruptcy proceedings,
declined to join the ISO filing, which was supported by Edison
International's Southern California Edison unit and Sempra Energy's San
Diego Gas & Electric Co. unit. PG&E said in a separate grid-plan filing that
it would prefer the ISO join a multistate grid organization. It expressed
reservations about the independence of the current board.

Opposition to the state's influence is becoming more vocal. The Electric
Power Supply Association, a trade group representing power producers, warned
FERC last month that the ISO has become "a partisan advocate for the State
of California" and sought FERC intervention to defend the rights of all
market interests.

Newer options
Business Standard - June 4, 2001
By Gaurav Dua

In addition to the numerous advantages of derivatives in terms of risk
management, price discovery and instruments for providing the required
leverage to the investor, options are also very effectively used as a tool
to develop and structure innovative products. Investment bankers use various
form of options including call, put, exotic, binary and so on, to structure
products for retail investors. Such products have gained immense popularity
in developed markets like the US and Europe.

In fact, structured products offered by investment banks like Salomon Smith
Barney (SSB), Goldman Sachs and others, are also actively traded at the
Chicago Board Options Exchange (CBOE). These relatively new investment
vehicles are similar to call or put options as they have an expiration date,
and are cash settled like index options. The capital markets division at
CBOE assesses the concept behind the instrument and provides regulatory
guidance before the product is offered in the market.

One of the very successful and popular examples of structured products is
capital protected notes where the return on investment is linked to the
performance of certain indices, basket of stocks or a single stock in a
given time frame. Here, the investment bank or intermediaries will calculate
the present value of risk-free interest that can be earned

* on the capital and use it to buy

* call options. The best part of the instrument is that there is no
risk

* of capital loss. And the risk of the investor is only limited to the

* interest that could have been earned on the capital.

This apart, exotic options like knock-in or knock-out options, where the
expiry of the option is based on certain conditions, are utilised to provide
flexibility and additional features to the investors. For instance,
structured products such as Target Trust Warrants offered by SSB guarantees
an assured return of six per cent with no risk to the capital and investor
can opt for redemption before the expiry date. But there is a cap on the
maximum amount of return that can be earned on the deposit.

A typical example of index based structured product is Equity based notes by
SSB where the returns to the investor is based on the

* appreciation in Dow Jones

* Industrial Average in a given time frame. This product is actively
traded on CBOE.

In the Indian context, structured products could very well fill in the gap
between the high risk high return equity investments and low risk low return
fixed deposits by banks. The drop of 150 basis in the interest rate on
popular investment avenues such as public provident fund, national saving
certificate and others, has already compelled the small investors to look at
others investment alternatives for higher returns. In such a scenario,
structured products are expected to do well in India.

Structured products could turn out to be a boon for numerous software
professionals who were unable to cash-in on their employee stock option
(ESOP) in the bull-run due to the lock-in period. "Investments bankers could
target such professionals with customised structured products using put
options", says Sanjiv Mehta, chief executive officer derivative segment,
Bombay Stock Exchange. Normally, customised structured products are used for
high networth clients.

**End of ISDA Press Report for June 4, 2001**

THE ISDA PRESS REPORT IS PREPARED FOR THE LIMITED USE OF ISDA STAFF, ISDA'S
BOARD OF DIRECTORS AND SPECIFIED CONSULTANTS TO ISDA.  THIS PRESS REPORT IS
NOT FOR DISTRIBUTION (EITHER WITHIN OR WITHOUT AN ORGANIZATION), AND ISDA IS
NOT RESPONSIBLE FOR ANY USE TO WHICH THESE MATERIALS MAY BE PUT.

Scott Marra
Administrator for Policy & Media Relations
ISDA
600 Fifth Avenue
Rockefeller Center - 27th floor
New York, NY 10020
Phone: (212) 332-2578
Fax: (212) 332-1212
Email: smarra@isda.org


----- Forwarded by Jeff Dasovich/NA/Enron on 02/23/2001 04:53 PM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	02/23/2001 04:18 PM

		 To: IEP <jmunoz@mcnallytemple.com>
		 cc:
		 Subject: Governor Davis Announces Principles of Agreement with SCE

Jan will be responding to the attached remarks by Governor Davis during the
IEP press call at 3:00 PST.  Call in # is 1-800-374-2393, Pass code:
Independent Energy Producers.

Thanks,
Jean

--
Jean Munoz
McNally Temple Associates, Inc.
916-447-8186
916-447-6326 (fx)

PR01:065
FOR IMMEDIATE RELEASE
02/23/2001 02:05 PM

GOVERNOR DAVIS ANNOUNCES PRINCIPLES OF AGREEMENT WITH SOUTHERN CALIFORNIA
EDISON

LOS ANGELES

Governor Gray Davis today announced an agreement in principle with Southern
California Edison to keep the utility solvent.

"This is the framework of a good, balanced deal," said Governor Davis. "It's
not a final deal. There's a lot of work to be done. But we're making
progress.

"This is a complex transaction with a lot of moving parts. With these terms
in place, I'm confident we'll be able to hammer out a final agreement
shortly."

The State has agreed to purchase the utility's transmission lines for an
estimated $2.76 billion (2.3 times estimated book value) and allow Edison to
issue bonds for a substantial portion of its undercollection.

In exchange, Southern California Edison has agreed to:

*    Make payments from its parent company, Edison International, to the
utility of approximately $420 million;
*    Commit the entire output of the parent company's Sunrise Mission power
project at low "cost-based" rates for 10 years (a value to ratepayers of
$500 million over the next two years);
*    Provide cost-based rates from the generating facilities they own for
another 10 years;
*    Conservation easements on 20,000 acres of watershed lands for 99 years;
and
*    Drop their pending litigation against the Public Utilities Commission
that would have resulted in immediate higher electric rates for consumers if
they had prevailed in court.

Negotiations will continue during the next several days with the utility.

###


Jeff, here are Colleen's comments.  At your convenience, let's meet to
discuss.
---------------------- Forwarded by Susan Scott/ET&S/Enron on 03/21/2000
10:16 AM ---------------------------

Colleen Raker
03/20/2000 07:37 PM
To: Susan Scott/ET&S/Enron@ENRON
cc:

Subject: Calpine/ TW Measurement and Control Facilities Operating Agreement

Attached is a black-lined version of my redraft of certain provisions of the
3/03/00 draft of the above Agreement.  The purpose of my changes was to (i)
apportion the risk assumed by TW and Calpine based on the economic benefits
realized by the parties and the ability of a party to insure against the
risk, and (ii) to clearly identify the parts of the facilities to be serviced
by TW and the list of services routinely performed.  I noticed that there is
no insurance  coverage  required of either Party.  I expect that Calpine
insures its property against casualties and is therefore in the best position
to assume the risk of loss or damage to its property.   On the other-hand,
third party property that is in the care, custody and control of TW while it
performs its work, is not covered by Enron's standard general liability
policies.  Builder's risk  coverage must be purchased to cover this risk; the
coverage is expensive.  Section 5.4 and Section 4.1 reflect this reasoning.

If TW plans to limit its financial responsibility to the amount of money
collected by Customer from TW's insurance carriers, then an Insurance section
should be included, and the penultimate sentence of Section 5.4 further
edited to stipulate that limitation.  If TW's limitation of liability is to
be a percentage of the total amount of revenues and compensation it receives
under this transaction, then that dollar-amount should be inserted in the
latter mentioned sentence of Section 5.4.

Please contact me if you have any questions about my changes.


Guys, we are getting close to completing the quarter, the following gross
margin is expected from each of these groups before the end of the week.  If
there is any issue of any type please give me or Wes a call. If there are any
upsides to these numbers please let us know as well.

 East Origination  $1.000 M
 West Origination $9.086 M (inclusive of all QF fair value)
 Industrial (incl trading) $12.899 M
 Generation Invest $45.350 M (including fair value and accretion on ECP)
 ENA Upstream  $41.112 M (including Sithe earnings plus HPL, LRC and upstream
origination)
 Coal   $4.161 M
 Canada  $11.50 M

 Equity Portfolio  Current MPR for quarter ($26.786M) (large positions -
moves with market)
    plus an additional writedown of ($279K) equivalent to $27.5 M less ECP
and West QF earnings listed above minus $10M.

Regards
Delainey


Please forward your email requests to the RAC group for opening this account.  Thanks.  Sara

 -----Original Message-----
From: 	Doukas, Tom
Sent:	Tuesday, October 09, 2001 7:42 AM
To:	Shackleton, Sara
Cc:	Heard, Marie
Subject:	Prime Account Needed
Importance:	High

We urgently need to have a new prime account set up at Bear Stearns to facilitate moving the Anker Coal positions from ECI into a fair value entity.

I had forwarded this to Frank Sayre as both of you were out on Friday.  This is background information on why we need to set up the prime account for ECT Europe Investments Inc.

We have been given until the 12th to move the Anker positions to the ECT Entity.  The account will need to be fully open and funded before the positions can move.

As this is of the highest priority please let me know immediately if there will be any issue with completing paperwork by tomorrow.

Thanks,

Tom

 -----Original Message-----
From: 	Doukas, Tom
Sent:	Friday, October 05, 2001 10:05 AM
To:	Sayre, Frank
Subject:	FW: Anker
Importance:	High

FYI

 -----Original Message-----
From: 	Cooper, Edmund
Sent:	Monday, October 01, 2001 1:22 PM
To:	Doukas, Tom
Subject:	Anker
Importance:	High

Dear Tom,

As we discussed, here are the stipulations we talked about regarding the entity to which Enron Credit Inc. can transfer the Anker stock and bonds. Those stipulations regarding the transferee entity are that it:

1. must be a US company (this is for tax reasons)
2. must be a "fair value" entity under US GAAP (accounting reasons)
3. must by an entity whose results roll up to Enron Europe Limited (account reporting purposes)
4. must be able to hold stocks and bonds viz. have a brokerage account

Of existing Enron entities, the only entity that meets 1. to 3. is ECT Europe Investments Inc. Therefore, this entity would need a brokerage account. This would appear to be the easiest (!) way in which to meet all four conditions.

As we discussed, even if we gave Bear Stearns a global Enron Corp. guaranty I do not think that ECT Europe Investments Inc. would be able to take advantage of Enron Credit Inc.'s funding arrangements unless it had further 0% risk weighted transactions held in the account.

Thanks and regards,

Edmund


I've received a copy of the powerpoint presentation Hertzberg made to the his
caucus.  Unfortunately, it's a fax and hardly legible.  I can make out,
however, that it is the core/noncore plan.  I'm attempting to get a better
copy and will distribute as soon as I get my hands on it.  Please keep
confidential that we have a copy.  Thanks.

Best,
Jeff


Hello All -

Just a reminder, this Wednesday is a training meeting.  The meeting will be in 32C2 from 4:00 - 6:00 pm.

Scott Neal will lead the training session.  Plese be sure to be prompt in your arrival .

Please contact me if you are unable to attend so that I might give you any handouts at a later time.

Thank you,

Adrianne Engler

HR Analyst
x57302


-----Original Message-----
From:  "Forte, Michael" <FORTEM@coned.com>@ENRON
[mailto:IMCEANOTES-+22Forte+2C+20Michael+22+20+3CFORTEM+40coned+2Ecom+3E+40ENR
ON@ENRON.com]
Sent: Tuesday, April 24, 2001 1:22 PM
To: Brown, Michael
Cc: Shackleton, Sara; Cray, Brian E.
Subject: Confirms with Enron

   Michael,

 Attached are our re-drafts of the financial products (collar,
participating swap and swap) that we are contemplating. Note that with
regard to the collar, the Notional Quantity was not put in the chart of the
call and put prices as we discussed, as it was too cumbersome to do so.  It
was set out as a separate line item.  We also provided for copies of certain
notices to be sent notices to be sent to the Con Edison General Counsel.
The draft confirms for the participating swap and the swap also use similar
provisions for Notional Quantity and provide for copies of such notices to
be sent to the Con Edison General Counsel.

>    <<ENA-CE Collar Confirm (4-24PM).doc>>
> <<ENA-CE Partic Swap Confirm (4-24PM).doc>>    <<ENA-CE Swap
> Confirm (4-24PM).doc>>
>
Thank you and have a great day!
Michael

 - ENA-CE Collar Confirm (4-24PM).doc
 - ENA-CE Partic Swap Confirm (4-24PM).doc
 - ENA-CE Swap Confirm (4-24PM).doc


The Senate voted on the Interior Appropriations Bill late yesterday.  Our
amendment passed, which prevents either BLM or the Forest Service from
enacting new fiber optic federal lands rights-of-way policies.  The BLM made
a last ditch effort to defeat this in the Senate, but we had reached key
Senators and staff and they got nowhere.

Action now moves to Conference, which for us means a focus on the House
Conference members.  Scott and I will spend the next 2 days meeting with the
key Republicans in the House.  We've already recruited the important
Democrats.  Interior Approps Subcommittee Chairman Regula remains opposed, at
least publicly, but we think we can get other Members to swing him.  We trust
he'll come up with a sensible, face saving compromise on his own, eg,
formally beginning a review process with his Subcommittee having oversight --
at this point, our language literally forbids BLM or Forest Service from even
meeting to discuss the issue.

We continue, though, on several other fronts:

1. We have the New Dems writing OMB on the issue and several Senators and
Congressmen writing BLM and USFS
2. We've increased the pressure on the White House, and are letting them know
through very senior back door channels that in our opinion, BLM/Forest
Service have not gotten the message.  Our position is that we'll be satisfied
that they've changed their evil ways when the new assessment on the Mt. Hood
EBS build is retracted.
3. We're preparing both Senate and House authorizing Committees for the
longer-term issue next session.  We have no trouble finding champtions eager
to own the issue
4. We're engaging the Western Caucus for same
5. Our adhoc coalition continues to grow in numbers and clout with over 20
companies and associations now actively engaged.  Enron chairs this
initiative, with a tangible side benefit being much increased visibility and
stature as a serious communications player.
6. Scott is successfully engaging state and local officials to weigh in from
the end-user perspective

BLM is on the retreat and has asked for a meeting, which we've refused.   We
don't think they've given up though, and it's likely an issue of pride at
this point.  So until the Approps process concludes we're continuing with the
full court press.

Steve