PennFuture's E-cubed is a commentary biweekly email publication  concerning
the current themes and trends in the energy market.

?
December 11, 2000
Vol. 2, No. 24
?
Demand Side,s Promise
?
The coldest days of the year are when wholesale electricity prices are  among
their highest, and when the risks of blackouts are greatest, least  welcome,
and even dangerous. On these days, frequently around the holidays, our
electric system and wallets are stressed to the limit. As energy demand
surges,  prices in the wholesale electric market skyrocket, with price caps
serving as  the only limits to the pricing power of wholesale suppliers. And
as more  electricity is generated, old fossil fuel power plants emit more and
more  pollution into our environment.
?
At the other extreme, the hottest days of the year present the same
scenario, often with the added designation of being the smoggiest days.
Sometimes the smog * caused in part by the sun heating up pollutants emitted
from power plants * is so bad that people are advised to stay indoors, and
thousands with respiratory illness crowd emergency rooms across the nation.
?
Yet, we could all breathe easier, save money, and worry less about our  power
going out, if many more consumers were given the opportunity to change  their
electric usage in response to escalating prices, and to profit from doing
so. In electric restructuring vocabulary, &demand-side response8 is
typically  used to describe these consumer actions to reduce or shift their
electric usage  in response to changes in prices.
?
For years, encouraging demand reduction or energy efficiency has been the
holy grail for the environmental community, because many of our country,s
most  pressing environmental and public health problems cannot be solved if
the nation  simply guzzles ever more dirty power. But these days, the case
for fostering  demand-side response has never been stronger, and there is an
emerging consensus  that goes well beyond the environmental community about
the importance of  increasing demand-side response.
?
More and more experts now agree that empowering consumers to modify their
electricity usage in response to price will powerfully address the triple
threat  of pollution, high electric bills, and rolling blackouts, all of
which are now  plaguing California. Indeed, electric restructuring in
California or any other  state will not be complete until consumers are able
to modify their usage in  response to real-time prices.
?
But while greater demand-side response would deliver numerous benefits to
consumers, the economy, system reliability, and the environment, most
electric  markets presently provide far too few opportunities * even within
Pennsylvania  and PJM, where retail and wholesale electricity competition
have been the most  successful.
?
Therefore, as the next crucial stage in its electricity restructuring,
Pennsylvania and PJM must now lead the way in creating policies and market
mechanisms to increase opportunities for demand-side response.
Encouragingly,  both the Pennsylvania Public Utility Commission (PUC), where
Commissioner  Fitzpatrick sponsored a November 21st conference on the
subject, and PJM,s  management understand the stakes.
?
Demand-Side Benefits
A legitimate demand-side market  would serve as a check on high prices in the
hourly and forward PJM energy  markets. PJM,s Market Monitoring Unit
calculates that a 1 percent reduction in  demand during peak periods (about
500 mW) can reduce market prices by about 10  percent. Empowering customers
to participate in the demand-side market limits  wholesale and retail prices,
impacting the forward market and making the retail  market more competitive.
?
In addition, a demand-side response reduction of 5,000 mW would enable PJM
to once again retain its one-day-in-ten reliability standard, an historic
reliability benchmark which has been put at risk due to the off-system sales
of  generators this past summer.
?
The Technology
Three types of technologies are required  to achieve 5,000 mW of reliable
demand-side participation. Each is readily  available and, more importantly,
pays for itself. Yet not enough of these  technologies are being installed in
homes and businesses to safeguard the public  interest.
?
Remote appliance controls. These controls enable a consumer to  voluntarily
curtail his/her electric usage during peak periods in exchange for  an
economic benefit. For example, in its &On Call8 program, FPL installs an
energy management device in consumers, homes, connecting it to one or more
qualifying appliances. Through this program, FPL pays consumers up to $161
per  year in credits on their electric bills. More than 600,000 FPL customers
are  currently participating.
?
Here in PJM, BGE pays residential consumers $10 per summer month for
installing an &Energy Saver Switch8 on their central air conditioners.
During  periods of high demand for electricity, BGE sends a radio signal
which activates  the switch, cycling the compressor in 15-minute increments.
More than 225,000  BGE residential customers currently use the Energy Saver
Switch and help BGE  manage summer peak load. Consumers who choose to
similarly cycle their electric  water heater receive an additional $5 credit
per summer month.
?
Also in PJM, PEPCO,s 200 mW-sized &kilo-watchers plus8 program offers
participants about $100/year for the right to remotely cycle 100 hours of
residential air conditioning. In another example, The Allegheny Electric
Cooperative in Pennsylvania remotely switches air conditioners and water
heaters  from a central location in downtown Harrisburg.
?
For most consumers in these programs, it,s money in the bank without
noticeable impact. These programs demonstrate that many small consumers want
the  opportunity to voluntary save money in return for agreeing to brief
interruptions of selected appliances, and that it,s fairly simple to provide
the  technology and operate the program.
?
The Pennsylvania PUC and other state Commissions should encourage and, if
necessary, direct jurisdictional EDCs to offer remote appliance devices to
consumers. It,s not difficult to imagine that, if remote appliance devices
were  implemented throughout PJM, 3,000 mW of small commercial and
residential  remotely cycled load could be bid in a demand-side market.
?
Metering Set-Top Devices or Advanced Metering. Advanced metering or  metering
set-top devices register load decrements, enabling consumers and/or  their
suppliers to sell firm power into the peak market, instead of using it.  For
example, a supplier (either the local utility or a competitive supplier)
could offer a lower price to a large consumer willing to reduce usage during
peak load, enabling the supplier to sell a relatively small amount of
electricity to those requiring firm service during the peak load. The
consumer  need not agree to limit usage except upon specific approval.
Already Duquesne  and soon PECO Energy will have deployed advanced metering
system-wide,  demonstrating that it can be economic even without the benefits
of demand-side  response.
?
There are also various devices or meter add-ons that modify existing meters
and allow recording of load decrements (see, for example,
www.stonewatersoftware.com). These  devices or meter add-ons appear to pay
for themselves when the energy is sold  during periods when prices are above
the price the consumer is paying the EDC.
?
The need to ensure reliability in PJM, combined with the current
availability of technology to enable demand-side participation by all
consumers,  dictate that by 2004, all Pennsylvania customers should be
equipped with a  metering or appliance control device.
?
Internet-based Energy Management Platforms. Computer software is  necessary
to maximize the effectiveness of advanced metering. Programs have  already
been developed and used by major international corporations which enable
them to make precise decisions on when to sell power back into the market,
decrease usage, and use on-site generation. BGE, for one, recently announced
deployment of the Omni-Link platform
(www.powerwebtechnologies.com/news/111200.htm).
?
Demand-Side Barriers
There are no inherent obstacles to  obtaining the benefits of demand-side
responses, but there are several important  commitments necessary to make the
promise of demand-side market participation a  reality.
?
PJM and other ISOs, as well as utilities and suppliers, must all be able to
offer demand-side platforms without discrimination. In addition, PJM and
other  ISOs have the direct responsibility to manage system reliability and
the  wholesale energy market. Demand-side responses directly impact
reliability and  wholesale market prices, including undesirable market power
during peak load.  There can be no doubt that ISOs have an inherent role,
indeed an inherent  responsibility, to maximize the effective deployment of
demand-side market  responses, especially to offer a platform for LSEs to
sell load decrements  created in response to price signals. PJM is on board,
but consumers who want to  sell directly into the PJM demand-side market face
opposition from some  EDCs.
?
To unlock the potential of demand-side markets, the Pennsylvania PUC, other
state commissions and the FERC must support the role of PJM and other ISOs
in  creating such a market. PJM must be permitted and encouraged to offer a
demand-side platform. Finally, EDCs must be required to fully deploy
advanced  metering and remote appliance control programs.
?
These small but important public policies will help to protect the
reliability of our electricity system, our wallets, and our environment.

E-cubed is available for reprint in newspapers and other publications.
Authors are available for print or broadcast. Support E-cubed by becoming a
member of PennFuture * visit our secure online membership page at
www.pennfuture.org by clicking on &Support  Our Work.8
?
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to protect and improve the state,s environment and economy.  PennFuture,s
activities include litigating cases before regulatory bodies and in  local,
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advocacy.
?
We hope you found this informative and interesting.  However, if you would
prefer not to receive future issues, please reply to this  email and type
&unsubscribe8 in the subject line.
 - Vol2No24_121100.doc


You're certainly becoming a regular on the energy speaker's circuit!  How'd
your event last Thursday go?  I'm sure you charmed their regulatory panels...

From: Jeff Dasovich on 11/06/2000 01:31 PM
Sent by: Jeff Dasovich
To: Sandra McCubbin/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Harry
Kingerski/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Mary
Hain/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, Susan J Mara/NA/Enron@Enron, Mona L
Petrochko/NA/Enron@Enron, Karen Denne/Corp/Enron@ENRON, mpalmer@enron.com,
skean@enron.com, Sandra McCubbin/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT
cc:

Subject: Berkeley Policy School Energy Summit

FYI.  I'll be participating in a "round table discussion" on California next
Monday on the Berkeley campus.  It's being sponsored by the Policy School and
some folks from the Business School.  Laura Tyson and a former FCC mucky-muck
(Howard Shalansky) will moderate the two panels.  Alums who now work in the
energy biz are putting up funding for the event (e.g., Columbia, American
Public Power Ass.)  We're providing a modest stipend.

There are two "round tables."  First one is "Why did we do this?," and the
second one is "Where to from here?"  I'll be on the second panel.  Go to the
attached website for agenda and other info.  I intend to pull from the
messages, filings and other materials that we've developed over the course of
the last several weeks/months.  I'll distribute talking points for review and
comment sometime this week.  But please feel free to send thoughts,
suggestions, etc. early and often.

Best,
Jeff

http://gspp.berkeley.edu/events/electricity_summit_conference.htm.


-----Original Message-----
From: Crenshaw, Shirley
Sent: Tuesday, August 28, 2001 7:34 AM
To: Adam Stevens (E-mail); Alex Huang (E-mail); Amitava Dhar (E-mail); Anguel Grigorov (E-mail); Anita DuPont (E-mail); Bhalachandra Mehendale (E-mail); Bob Lee (E-mail); Candice Kao (E-mail); Chonawee Supatgiat (E-mail); Christopher Pernoud (E-mail); Eric Cope (E-mail); Gwyn Koepke (E-mail); Heather A. Johnson (E-mail); Jaesoo Lew (E-mail); Jason Sokolov (E-mail); Jose Marquez (E-mail); Joseph Hrgovcic (E-mail); Karthik Rajan (E-mail); Kenneth Deng (E-mail); Kevin G Moore (E-mail); Lance Cunningham (E-mail); Leann Walton (E-mail); Martin Lin (E-mail); Maureen Raymond (E-mail); Mike A Roberts (E-mail); Mitra Mujica (E-mail); Nelson Neale (E-mail); Osman Sezgen (E-mail); Paulo Issler (E-mail); Pinnamaneni Krishnarao (E-mail); Pravas Sud (E-mail); Praveen Mellacheruvu (E-mail); Rabi De (E-mail); Rakesh Bharati (E-mail); Roman Zadorozhny (E-mail); Sandeep Kohli (E-mail); Sarah Wooddy (E-mail); Seksan Kiatsupaibul (E-mail); Sevil Yaman (E-mail); Shalesh Ganjoo (E-mail); Shane Green (E-mail); Shravan Chopra (E-mail); Sofya Tamarchenko (E-mail); Stephen Bennett (E-mail); Tanya Tamarchenko (E-mail); Therese Candella (E-mail); Tom Barkley (E-mail); Tom Halliburton (E-mail); Vasant Shanbhogue (E-mail); Vince J Kaminski (E-mail); Wichai Narongwanich (E-mail); William Smith (E-mail); Zimin Lu (E-mail); Michael SCHILMOELLER (E-mail); Viacheslav Danilov (E-mail)
Subject: FW: More on this subject - Sharing Your Personal Information, It's Your Choice

Here is some more info on the email that we forwarded last week.

-----Original Message-----
From: Cunningham, Lance
Sent: Monday, August 27, 2001 8:42 AM
To: Crenshaw, Shirley
Subject: More on this subject - Sharing Your Personal Information, It's Your Choice

Shirley,

Please forward to our group.

Lance
-----Original Message-----
From: Mary Cunningham [mailto:mcunningham9@houston.rr.com]
Sent: Friday, August 24, 2001 4:22 PM
To: Cunningham, Lance
Subject: Sharing Your Personal Information It's Your Choice

 sm-seal.gif (7805 bytes) <http://www.ftc.gov/privacy/sm-seal.gif>	 sm-ftc.gif (15687 bytes) <http://www.ftc.gov/privacy/sm-ftc.gif>
 sub_choice.gif (2731 bytes) <http://www.ftc.gov/privacy/sub_choice.gif>

 sub_divider.gif (94 bytes) <http://www.ftc.gov/images/sub_divider.gif>

It's important to find out what happens to the personal information you provide to companies, marketers, and government agencies. These organizations may use your information simply to process your order; they may use it to tell you about products, services, or promotions; or they may share your information with others. More organizations are offering people choices about how their personal information is used. For example, many let you "opt-out" of having your information shared with others or used for promotional purposes.

Learn more about the choices you have to protect your personal information by contacting the following organizations.

 sub_bullet.gif (271 bytes) <http://www.ftc.gov/privacy/sub_bullet.gif>	Credit Bureaus
 sub_bullet.gif (271 bytes) <http://www.ftc.gov/privacy/sub_bullet.gif>	Department of Motor Vehicles
 sub_bullet.gif (271 bytes) <http://www.ftc.gov/privacy/sub_bullet.gif>	Direct Marketers

The FTC publishes a free brochure, Unsolicited Mail, Telemarketing and Email: Where to Go to "Just Say No," <http://www.ftc.gov/bcp/conline/pubs/alerts/optoutalrt.htm> that provides information on how you can cut down on the number of unsolicited mailings, calls and emails you receive by learning where to go to "just say no."

 sub_divider.gif (94 bytes) <http://www.ftc.gov/images/sub_divider.gif>

Credit Bureaus

The three major credit bureaus may have different requirements on how to opt-out. You can write your own letter or use our Sample Opt-Out Letter <http://www.ftc.gov/privacy/cred-ltr.htm> to request that your personal information not be shared with others or used for promotional purposes.

The national credit bureaus offer a toll-free number that enables consumers to opt-out of all pre-approved credit offers with just one phone call. Call 1-888-5-OPTOUT (1-888-567-8688) for more information.

Visit the web site or phone each bureau for their most up-to-date information.

Equifax, Inc.Options <http://www.equifax.com/>
P.O. Box 740123
Atlanta, GA 30374-0123

ExperianConsumer Opt-Out <http://www.experian.com/>701 Experian Parkway
Allen, TX  75013
Trans Union Marketing List Opt Out <http://www.transunion.com/Personal/MarketingOptOut.asp>
P.O. Box 97328
Jackson, MS  39288-7328

The FTC publishes free brochures on credit-related issues <http://www.ftc.gov/bcp/menu-credit.htm>. For a complete list of publications, write for Best Sellers <http://www.ftc.gov/bcp/conline/pubs/general/bestsell.pdf>, Consumer Response Center, Federal Trade Commission, Washington, DC 20580; or call (202) FTC-HELP, TDD (202) 326-2502.

 sub_divider.gif (94 bytes) <http://www.ftc.gov/images/sub_divider.gif>

Department of Motor Vehicles

State departments of motor vehicles (DMVs) maintain a lot of personal information about you. (Just look at your driver's license, for example.) The Drivers Protection Act <http://www.law.cornell.edu/uscode/18/2721.shtml> gives you privacy rights with regard to information maintained by DMVs. The law lists the ways this information can be used - a DMV may distribute personal information for things like law enforcement, driver safety, insurance underwriting, etc.

A recent amendment to the law now prohibits a DMV from distributing your personal information for other types of uses, including for direct marketing, unless you give them permission.

Contact the DMV in your state for more information.

| AK <http://www.state.ak.us/local/akpages/ADMIN/dmv/general/drrec.htm> | AL <http://www.ftc.gov/privacy/dmv-add.htm#Alabama> | AR <http://www.ftc.gov/privacy/dmv-add.htm#Arkansas> | AZ <http://www.dot.state.az.us/MVD/faqs/scripts/faqs.asp?section=dl> | CA <http://www.dmv.ca.gov/> | CO <http://www.state.co.us/gov_dir/revenue_dir/MV_dir/mv.html> | CT <http://dmvct.org/copypg.htm> | DC <http://www.ftc.gov/privacy/dmv-add.htm#DC> | DE <http://www.state.de.us/pubsafe/index.htm> | FL <http://www.hsmv.state.fl.us/ddl/dppa.html> | GA <http://www.Georgianet.org/dps/divisions.html> | HI <http://www.ftc.gov/privacy/dmv-add.htm#Hawaii> | IA <http://www.ftc.gov/privacy/dmv-add.htm#Iowa> | ID <http://www2.state.id.us/itd/dmv/dmvstats.htm> | IL <http://www.sos.state.il.us/depts/drivers/dri_home.html> | IN <http://www.ai.org/bmv/index.html> | KS <http://www.ink.org/public/kdor/driver-optout.html> | KY <http://www.ftc.gov/privacy/dmv-add.htm#Kentucky> |
| LA <http://www.dps.state.la.us/omvwww.nsf?OpenDatabase> | MA <http://www.magnet.state.ma.us/rmv/privacy/index.htm> | MD <http://mva.state.md.us/> | ME <http://www.state.me.us/sos/bmv/privacy.htm> | MI <http://www.ftc.gov/privacy/dmv-add.htm#Michigan> | MN <http://www.dps.state.mn.us/dvs/index.html> | MO <http://www.ftc.gov/privacy/dmv-add.htm#Missouri> | MS <http://www.ftc.gov/privacy/dmv-add.htm#Mississippi> | MT <http://www.ftc.gov/privacy/dmv-add.htm#Montana> | NC <http://www.ftc.gov/privacy/dmv-add.htm#North Carolina> | ND <http://www.ftc.gov/privacy/dmv-add.htm#North Dakota> | NE <http://www.nol.org/home/DMV/form2.htm> | NH <http://www.state.nh.us/safety/dmv.htm> | NJ <http://www.state.nj.us/mvs/> | NM <http://www.state.nm.us/tax/mvd/mvd_home.htm> | NV <http://www.state.nv.us/dmv_ps/> |
| NY <http://www.nydmv.state.ny.us/abstract.htm> | OH <http://www.state.oh.us/odps/division/bmv/frm_dnld.html> | OK <http://www.ftc.gov/privacy/dmv-add.htm#Oklahoma> | OR <http://www.odot.state.or.us/dmv/index.htm> | PA <http://www.dmv.state.pa.us/home/index.asp> | RI <http://www.ftc.gov/privacy/dmv-add.htm#Rhode Island> | SC <http://www.state.sc.us/dps/dmv/> | SD <http://www.state.sd.us/state/executive/revenue/motorvcl.htm> | TN <http://www.state.tn.us/safety/> | TX <http://www.txdps.state.tx.us/forms/> | UT <http://www.ps.ex.state.ut.us/dl/default.html> | VA <http://www.dmv.state.va.us/webdoc/citizen/records/release.html> | VT <http://www.aot.state.vt.us/dmv/dmvhp.htm> | WA <http://www.wa.gov/dol/> | WI <http://www.dot.state.wi.us/dmv/optout.html> | WV <http://www.state.wv.us/dmv/forms.htm> | WY <http://www.ftc.gov/privacy/dmv-add.htm#Wyoming> |

 sub_divider.gif (94 bytes) <http://www.ftc.gov/images/sub_divider.gif>

Direct Marketers

The Direct Marketing Association (DMA) offers the Mail, Telephone, and E-mail Preference Services, which allow you to opt-out of direct mail marketing, telemarketing and/or direct e-mail marketing from many national companies. Use the links below to access information and forms for the DMA's Mail, Telephone and/or E-mail Preference Services.

Visit the DMA's website <http://www.the-dma.org> for their most up-to-date information.

Direct Marketing Association
Mail Preference Service <http://www.the-dma.org/consumers/offmailinglist.html>
P.O. Box 9008
Farmingdale, NY  11735-9008

OR

Preference Service Manager
Direct Marketing Association
1120 Avenue of the Americas
New York, NY 10036-6700

Form in html format <http://www.the-dma.org/consumers/mps-sht.html>

Direct Marketing Association
Telephone Preference Service <http://www.the-dma.org/consumers/offtelephonelist.html>
P.O. Box 9014
Farmingdale, NY  11735-9014

OR

Preference Service Manager
Direct Marketing Association
1120 Avenue of the Americas
New York, NY 10035-6700

Form in html format <http://www.the-dma.org/consumers/tps-sht.html>

Direct Marketing Association
E-mail Preference Service <http://www.e-mps.org>

Send via fax to: (212) 790-1427

The FTC publishes a free brochure on Shopping by Phone or Mail <http://www.ftc.gov/bcp/conline/pubs/buying/mail.htm>. For a complete list of publications, write for Best Sellers <http://www.ftc.gov/bcp/conline/pubs/general/bestsell.pdf>, Consumer Response Center, Federal Trade Commission, Washington, DC 20580; or call toll-free, 1-877-FTC-HELP (382-4357), TDD (202) 326-2502.

 sub_divider.gif (94 bytes) <http://www.ftc.gov/images/sub_divider.gif>

Contact Us <http://www.ftc.gov/ftc/talk_to_us.htm> | Search <http://www.ftc.gov/search> | Complaint Form <https://rn.ftc.gov/dod/wsolcq$.startup?Z_ORG_CODE=PU01> | FOIA <http://www.ftc.gov/foia/index.htm> | Privacy <http://www.ftc.gov/ftc/privacy.htm> | Site Map <http://www.ftc.gov/ftc/sitemap.htm> | Home <http://www.ftc.gov/index.html>

Last Updated: Wednesday, July 25, 2001


----- Forwarded by Jeff Dasovich/NA/Enron on 03/10/2001 12:11 PM -----

	JBennett <JBennett@GMSSR.com>
	03/08/2001 06:17 PM

		 To: "'James.D.Steffes@enron.com'" <James.D.Steffes@enron.com>, "'Harry
Kingerski (E-mail)'" <Harry.Kingerski@enron.com>, "'Mike Smith (E-mail)'"
<msmith1@enron.com>, "'Robert Williams (E-mail)'"
<Robert.C.Williams@enron.com>, "'Jeff Dasovich (E-mail)'"
<jdasovic@enron.com>, "'smara@enron.com'" <smara@enron.com>, "'Tamara Johnson
(E-mail)'" <tjohnso8@enron.com>, "'Robert.Frank@enron.com'"
<Robert.Frank@enron.com>, "'leslie.lawner@enron.com'"
<leslie.lawner@enron.com>, "'sstoness@enron.com'" <sstoness@enron.com>,
"'JKLAUBER@LLGM.com'" <JKLAUBER@LLGM.com>
		 cc: Amr.Ibrahim@enron.com, John.Neslage@enron.com,
Robert.Neustaedter@enron.com
		 Subject: CPUC Weekly Update

Attached is the weekly update of events at the California Public Utilities
Commission.  As always, call if you have any questions.

 <<X20615.DOC>>

Jeanne Bennett

 - X20615.DOC


Dear Energy Insight Subscribers. As you may have noticed, there were a few first-day glitches with the e-mail we sent out earlier.
This one should be fine, but please let us know if you experience any more problems with the site. If you cannot read the HTML
version of this e-mail, please click on this link and change your user preferences to reflect plain text e-mail rather than HTML e-mail. http://public.resdata.com/essentials/user_pref.asp?module=EN. Thank you for your patience. If you have any questions,
feel free to contact us at 1-800-424-2908 (1-720-548-5700 if your are outside the U.S.) or e-mail us at custserv@ftenergy.com.

[IMAGE]

   [IMAGE] [IMAGE]  [IMAGE]  [IMAGE]  [IMAGE] [IMAGE]  [IMAGE]  [IMAGE]  [IMAGE]       [IMAGE]   [IMAGE]   [IMAGE]   [IMAGE]     	 [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]          Updated: April 30, 2001     [IMAGE]      [IMAGE]   [IMAGE]    [IMAGE] [IMAGE] [IMAGE]           Beyond California A group of U.S. energy leaders met at Oklahoma State University (OSU) last week to discuss state and national policy. Executives for Williams Cos., Dynegy Inc. and Reliant Energy participated, as well as members of academia and regulators from Illinois and Oklahoma. [IMAGE] [IMAGE]         [IMAGE]     [IMAGE] [IMAGE]       [IMAGE]      [IMAGE] [IMAGE]   [IMAGE]           [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]             [IMAGE] [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]           [IMAGE] [IMAGE]             [IMAGE] [IMAGE]   [IMAGE]          [IMAGE] [IMAGE]     [IMAGE]        Sierra Pacific faces California-type woes Company sitting on volatile buy-sell imbalance.  Deals to sell plants, buy Portland General flickering.  Politics complicating problems.  [IMAGE] [IMAGE]        [IMAGE]   [IMAGE]   [IMAGE] [IMAGE]             [IMAGE] [IMAGE]             [IMAGE] [IMAGE]     [IMAGE]       Resurrection of residential energy-efficiency programs Real time pricing may shave peak loads.  Rate hikes, rebates, mandates viewed. [IMAGE] [IMAGE]        [IMAGE]  [IMAGE]    [IMAGE] [IMAGE]             [IMAGE] [IMAGE]             [IMAGE] [IMAGE]     [IMAGE]       LNG: birth of a commodity Influence of California debacle being felt.  Repeal proponents tout potential investment.  Small players could aggregate. [IMAGE] [IMAGE]        [IMAGE]   [IMAGE]   [IMAGE] [IMAGE]             [IMAGE] [IMAGE]             [IMAGE]  [IMAGE]     First 8 stories: Sierra Pacific, Enron and Portland General buyout talks go to full story...   Bush administration may allow QFs to break contracts go to full story...   Davis picks up key support for wires buy go to full story...   FERC's temporary cap flawed, some experts believe go to full story...   President Bush remains opposed to price caps go to full story...   Reliant increases price of IPO go to full story...    Montana looking at locomotive power go to full story...   Berlin senate backs Mirant-HEW partnership go to full story...   Page 1                [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]         [IMAGE] [IMAGE]  ? Copyright ? 2001 - FT Energy, All Rights Reserved. "FT" and "Financial Times" are trademarks of The Financial Times Ltd.    	     [IMAGE] [IMAGE]  [IMAGE]  [IMAGE]  [IMAGE]   [IMAGE]      [IMAGE]    [IMAGE]   Advertise on Energy Insight    [IMAGE]

 - Market Brief.doc


Gillian spoke to Jeff Kinneman and he would like to get whatever
documentation would be required to permit him to execute documents here in
Houston on a going forward basis for Credit.com.  We don't know what it will
take to do this, but it really isn't practical for us to get Jim Derrick or
Mark Frevert to sign.


We bought 500 from COH (deal 155197) and sold it to CES (deal 155195) for the
26th.  This deal was done without Brian's approval.  He seemed mildly annoyed
but I think he will forget about it.


Justin, I do not think I am going to nyc.  Love Dad
Mark Haedicke


I am pleased to announce that Jana Domke has accepted the position of Director, Compensation for Enron Transportation Services, effective August 1, 2001.

Jana started with Enron in May, 2000 and most recently has been Director of Compensation & Benefits for Enron Wind.  Prior to joining Enron, Jana was a Practice Leader with PricewaterhouseCoopers, and Director, International Compensation & Benefits for Smith International.  Jana has 19 years of experience in both domestic and international compensation and benefits.

Jana received her M.B.A. from the University of Houston.  She also has a Bachelors Degree from U of H in Organizational Behavior & Management.

Jana can be reached at (713) 853-6329 and her office location is EB1156.  The ETS Compensation staff, including Jana's direct reports, can be viewed on the attached organization chart.

Please join me in welcoming Jana to the ETS team.


David:
I need a phone number and name for Williams.  I will follow up with Morgan as
I have not heard back from them since I called them last week.  How is the
chart coming?
Carol

	David P Dupre
	05/17/2000 07:17 PM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc:
		 Subject: update

Hi, have you been able to contact Williams or hear from Morgan Stanley
regarding their issues.

Thanks
David

   Carol St Clair                05/11/2000 11:42 AM

To: David P Dupre/HOU/ECT@ECT
cc:
Subject: Re: follow up

David:
I would prefer to wait until next Tuesday to meet, particularly in light of
the luncheon with your group that we are having.  Is that okay with you?  In
the meantime, I am working with credit to finalize the SG Interests Master
and when I asked Sara about Williams, she indicated that she had not spoken
with them about confirmation issues.  Do we have a contact there?  I also
have a call into Morgan.  Finally, I mentioned to Mark Taylor how we were
trying to prioritize our list and he identified 2 other categories in
addition to # of unsigned confirms and Exposure amounts.  He thought that it
was important to only focus on those transactions that were greater than 1
year in duration from the outset and also to focus on those counterparties
who have never signed confirms.  Can you add these to your list of categories?

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


Attached is a revised Credit Watch listing for the week of 9/10/01.   Please note that Interconn Resources, Inc. and Prior Energy Corporation were both placed on the Credit Watch List this week for "NO TRADES".
If there are any personnel in your group that were not included in this distribution, please insure that they receive a copy of this report.
To add additional people to this distribution, or if this report has been sent to you in error, please contact Veronica Espinoza at x6-6002.
For other questions, please contact Jason R. Williams at x5-3923,  Veronica Espinoza at x6-6002 or Darren Vanek at x3-1436.


*REVISED*
Notice No. 00-408
December 7, 2000

TO:  All COMEX Members/Member Firms
All COMEX Clearing Members
All COMEX Floor Traders
All COMEX Operations Managers

FROM: Michael Campanelli, Vice President
  Floor Operations, COMEX Division

RE:  Options Expiration Operational Procedures for the Trading Floor and
Clearing Members
__________________________________________________________

The expiration date for the January 2001 options contract for Silver (SO F01)
and Gold (OG F01) is Friday, December 8, 2000.

 GENERAL OPERATIONAL PROCEDURES

All Clearing Members and Qualified Floor Traders that carried an options
position as of the close of business day prior to the expiration day, or
engaged in trading activity on Expiration Day in the expiring options
contract will be required to have a knowledgeable, duly authorized on-line
trade entry ("OLTE") system trained representative available until released
by the Exchange staff.  All adjustments  and/or corrections, must be
accompanied by relevant supporting documentation prior to being incorporated
into expiration processing.  In essence, making the expiration processing an
extension of the afternoon trade resolution procedures.

Exchange Clearing (299-2110) and Trade Processing (299-2465 and 299-2044)
personnel will be available to assist with the processing of notices of
Exercise and Abandonment, position transfers, trade corrections and other
questions or problems you may have.

Failure by any Clearing Member or qualified Floor Trader to comply with
procedures as outlined herein may result in severe disciplinary action by the
Exchange and potential financial liability to customers or members for
failure to exercise diligence in the processing of information.

TRADING FLOOR OPERATIONAL PROCEDURES

Trading in the January 2001 Silver and Gold Options Contracts will cease at
2:25 P.M. and 2:30 P.M. respectively on December 8, 2000.  All Brokers and
Traders must inform their Clearing Members of their intentions to exercise or
abandon such Options by 4:00 P.M.

On Friday, December 8, 2000, all Brokers and Clearing Members must have a
duly authorized, On-Line Trade Entry ("OLTE") system trained representative
available until such time as the Exchange deems necessary.

NOTE: After 4:30 P.M. all expiring option trade data must be inputted on
special "OLTE" terminals located in the Trade Processing Room. Any other
means of submission will be rejected by the Exchange.  Members will be able
to submit all other trade data until 5:00 P.M.

After the UTR and the Preliminary Spot Month Matched Trade Reports are
displayed, Clearing Member representatives will be able to pick up their
Preliminary Clearing reports at the Clearing Department.

A final review of all submissions will be made, the Supervisor of the Trade
Processing Room will detain only those Clearing Members and/or Broker
representatives involved.  All final corrections will be made at this time
and upon determination of the Supervisor that all option processing is
complete, all representatives will be released.

Exchange Reports based on Friday,s submissions and processing will be
available on Monday morning December 11, 2000.

In the event that you have any questions regarding the foregoing trading
floor procedures please contact Michael Campanelli at (212) 299-2072 or David
Sherman at (212) 299-2061.

CLEARING DEPARTMENT OPERATIONAL PROCEDURES

1. OPEN POSITION CONFIRMATION ("OPC") - The OPC should reflect as accurately
as possible all futures and options gross positions as of close-of business
on the business day prior to expiration.  Review the estimated current gross
positions as shown and make appropriate adjustments.  The OPC must be
submitted not later than 9:00 AM.

2.   OPTIONS EXERCISE/ABANDONMENT REQUEST FORM ("E/A") - An expiring option
with a strike price in-the-money by one tick or more will be subject to
automatic exercise unless an Option Abandonment Request form is submitted
advising that a Clearing Member ("CM") elects to abandon some or all of its
position in that strike price (i.e., for the option series).  All other
options series in the expiring month will be subject to automatic abandonment
unless an Option Exercise Request form is submitted.  When submitting an E/A
form, please note the following:

(a) An E/A form must be submitted not later than 5:00 PM.
(b) Do not submit an Exercise form for positions in strike prices, which are
subject to automatic
Exercise nor submit an Abandonment form for positions in strike prices, which
are subject to automatic abandonment.
(c) If a CM wishes to submit an E/A form to abandon a position in a strike
price subject to automatic exercise or wishes to exercise a position in a
strike price which is out of the money, it is necessary to notify Clearing by
telephone of such anticipated action.  The CM must have an officer available
to confirm such intention.
(d) CMs may secure from Clearing a time-stamped receipt of the CM copy to
assure submission  of the CM,s E/A forms.

3. OPTION POSITION REDUCTION REQUEST FORM ("OPRR") - As a general rule,
purchases and sales of option contracts are presumed to be new business.   If
some or all of your purchases and sales are in fact undertaken for position
liquidation purposes, OPRR forms may be submitted on the day of expiration
and will be used in conjunction with trade data to reduce your projected
position in an expiring contract.  OPRR requests in excess of actual traded
volume will be rejected.  Exception: Cabinet trades and cancel correction
trades will automatically liquidate existing positions, therefore do not
submit an OPRR form for cabinet or cancel correction trades.
The OPRR form must be submitted not later than 5:00 PM.

4. HOUSE/CUSTOMER POSITION TRANSFER REQUEST FORM ("H/C") - H/C forms may be
used only to transfer previously cleared contracts between a CM,s house and
customer accounts. Problem trades (those which have not cleared prior to
expiration day), must be corrected using COMEX,s on-line trade entry system
under the direct supervision of the Trade Audits Department of COMEX ("Trade
Audits").  The H/C form must be submitted not later than 3:30 PM.

5. EX-PIT POSITION TRANSFER REQUEST FORM ("Ex-Pit") - Ex Pit forms may be
used only to transfer previously cleared contracts between CMs.  Problem
trades (those which have not cleared prior to expiration day), must be
corrected on the on-line trade entry system under the direct supervision of
Trade Audits.  The Ex-Pit form must be submitted not later than 3:30 PM.

 *****
A) At approximately 4:15 PM, two PRELIMINARY reports of the expiration
process will be available for distribution at the Nymex Clearing Department:

1. OPTION EXPIRATION REPORT AND CONFIRMATION - The purpose of this report is
to project the CM,s present position going into the expiration based upon the
transactions which have already been submitted to Clearing.  CMs should
review and modify their adjusted gross positions as of close-of-business on
the business day prior to expiration.  Further adjustments may be submitted
not later than 5:00 PM.  The projected ending gross positions will reflect
transactions accepted or rejected for clearance on expiration night,
inclusive of Ex-Pit, H/C and OPRR transactions which have been submitted to
Clearing prior to 3:30 PM, and trade information submitted to COMEX prior to
3:45 PM.  Normally, this report will also reflect manually submitted Exercise
and Abandonment instructions, the projected number of exercises and maximum
potential assignments for each strike price, the type of exercise (manual or
automatic), whether the strike is In, At or Out of the money, and the
exercise val!
ue!
 associated therewith based on settlement prices established by COMEX on the
day of expiration.

2. TRANSACTION LISTING - This listing will include in detail all expiring
option trades submitted to COMEX prior to 3:45 PM on expiration day, and all
H/C, ExPit, OPRR and E/A transactions submitted to Clearing Prior to 3:30 PM.

Please note: Trade information reflected on the option expiration report and
transaction listing are trades submitted only. To inquire whether trades have
matched, each CM must review the trade reports provided by COMEX,s On-Line
Trade Entry ("OLTE") system.

B) At approximately 5:30 PM, FINAL reports of the expiration process,
including all submissions to Clearing and trade information submitted to
COMEX made by 5:00 PM, will be available for distribution at the Nymex
Clearing Department.

C) At 5:45 PM, Preliminary In The Money Abandonment and Out Of The Money
Exercise information will be announced on Fast Facts.

D) At Approximately 7:30 PM, a Final Notice of Exercise/Assignments will be
available in each CM,s lockbox located at the Nymex Clearing Department.
Each CM, which has exercised or been assigned one or more options will
receive a separate statement showing exercises and/or assignments for each
option series.  Please check this statement carefully.  Although long options
positions in-the-money by one tick or more will be automatically exercised,
not all short option positions will be assigned if there are any options
manually abandoned at such strike prices.  Please note that there also may be
some at or out-of-the money options being exercised.

E) At approximately 9:00 PM, the final set of clearing sheets will be
available in each CM,s lockbox located at the Nymex Clearing Department.

It is strongly recommended that each CM have a representative(s) that is
properly trained to handle the option expiration process available beginning
at 4:15 PM and who will receive the CM=s reports at the specific times.  It
is solely the responsibility of the CM to review these reports and to notify
the Clearing staff immediately of any discrepancies.

To obtain the exact time of the availability for each report, clearing
members should call (212) 513-7405, access code 702.  The announcement time
will occur _ hour prior to availability.

Attached please find a Clearing Member Procedure Summary for ease of
reference.  Please contact John Ramos at (212) 299-2142 (Members 001-500) or
Mel Garcia at (212) 299-2144 (members 501-999) if you have any questions.

OPTION EXPIRATION PROCESSING CLEARING MEMBER PROCEDURE SUMMARY

Time: 3:30 PM
Activity: Expits, H/C transfers, Option Position Reduction and
Exercise/Abandon notices
Event: Submission to Clearing cutoff time.
Notes: Final cutoff for Expits and H/C tranfers

Time: 3:45 PM
Activity: Call Fast Facts to obtain availability time of Preliminary Option
Expiration Reports.
Event: Fast Facts notice of Availability

Time: 4:15 PM
Activity: Preliminary option expiration reports available to clearing members
at NYMEX Clearing Department

Time: 5:00 PM
Activity: Options Position Reduction, Exercise/Abandon notices and Gross
Position Adjustments
Event: Submission to Clearing Cutoff Time
Notes: Final cutoff for Option Position Reduction, Exercise/Abandon notices
and Gross Position Adjustments

Time: 5:05 PM
Activity: Call Fast Facts to obtain availability time of Final Preliminary
Option expiration Reports
Event: Fast Facts notice of Availability

Time: 5:30 PM
Activity: Final Preliminary option expiration reports available to clearing
members at NYMEX Clearing Department.

Time: 5:45 PM
Activity: Call Fast Facts to obtain Preliminary In the Money Abandonment and
Out of the Money Exercise Information
Event Fast Facts notice of information
Notes: New Event

Time: 6:00 PM
Activity: Corrections to previously Submitted Adjustments or Notices
Event: Correction period cutoff time (30 minutes after final preliminary
report is distributed)
Notes: Final cutoff for corrections

Time: 7:00 PM
Activity: Call Fast Facts to obtain availability of final expiring option
position and Exercise/Assignment report
Event: Fast Facts notice of Availability

Time: 7:30 PM
Activity: Final expirating options position and Exercise/Assignment report
available in clearing member's lockbox at NYMEX Clearing Department

Time: 8:30 PM
Activity: Call Fast Facts to obtain availability of final clearing reports.
Event: Fast Facts notice of Availability

Time: 9:00 PM
Activity: Final clearing reports available in clearing member's lockbox at
NYMEX Clearing Department.

Please contact John Ramos at (212) 299-2142 (Members 001-500) or Mel Garcia
at (212) 299-2144 (members 501-999) if you have any questions.

__________________________________________________
Please click on the link below to indicate you have received this
email.

"http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdo
c=(00-408-REVISED-#2)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.


I agree - we will just need to get information via normal intervention.

-----Original Message-----
From: Tycholiz, Barry
Sent: Mon 8/13/2001 10:58 AM
To: Miller, Stephanie
Cc: Cantrell, Rebecca W.
Subject: FW: Kern River 2003 Expansion Project

Steph, as you know we are not a shipper in this expansion, and I do not foresee any issues related to Enron other than the primary delivery point service that Kern continues to put into Wheeler ( although ) kern maintains this is a takeaway issue, not  delivery. I do not see us filing on this issue however, do you?

Pls advise if you have a different opinion, but I see no reason for ENA to intervene.

BT

 -----Original Message-----
From:   Cantrell, Rebecca W.
Sent:   Monday, August 13, 2001 10:48 AM
To:     Miller, Stephanie; Tholt, Jane M.; Tycholiz, Barry; Grigsby, Mike
Cc:     Lawner, Leslie
Subject:        Kern River 2003 Expansion Project

This project has been noticed by FERC (CP01-422).  Adds 906,626 dth/day (845,500 Mcf) of capacity from Opal, WY to delivery points primarily in California.  Service commencing 5/1/2003.  Incremental rates and fuel.   Seventeen shippers have signed 18 long-term agreements (10 or 15 years) and 95% has primary delivery points in California, mostly for existing and new power generation.

Any issues?  Are we a shipper?  Comments and interventions are due Aug. 29th.  Since I will be in D.C. that week, need your input by Aug. 23rd.

We are downloading a copy of the filing (392 pages).  Let me know if you would like a copy.


Jeff, I was sorry to read of your resignation from Enron. I believe your
leadership and vision have put the Company on a path that will serve it well
for many years into the future.I always remember fondly the years we spent
plotting strategies for the "new world" of the natural gas industry. Best of
luck in your future endevors. If you are ever in Denver, please give me a
call (303-783-0857). Don


Attached is the Weekly Deal Report for 11/1/01-11/8/01.

Lex Carroll
Enron East Power Marketing, Inc.
Midwest Origination
713-853-5426


Please find to below/to follow our Weekly Report for Monday 24th July 2000.


Yes, Global agrees.

From: Lisa Lees on 04/17/2001 10:30 PM
To: Tana Jones/HOU/ECT@ECT, Kelly Lombardi/NA/Enron@Enron, Karen
Lambert/HOU/ECT@ECT
cc: Stephanie Sever/HOU/ECT@ECT
Subject: RGC3, PP-HP, Ethylene, and LLDPE Call & Put Approvals - 8 product
types!

Tana/Kelly/Karen:

The product long descriptions below will fall under the 8 new product types:

 US RGC3 Fin Opt Call
 US RGC3 Fin Opt Put
 US Ethylene Fin Opt Call
 US Ethylene Fin Opt Put
 US LLDPE Fin Opt Call
 US LLDPE Fin Opt Put
 US PP-HP Fin Opt Call
 US PP-HP Fin Opt Put

Credit (Tom Moran) has approved copying the profiles for all of these new
product types from the following:

 US Plastic RGC3 Fin Swap

Please respond no later than 11 a.m. on Wednesday, April 19.

Thank you.
----- Forwarded by Lisa Lees/HOU/ECT on 04/17/01 10:16 PM -----

	Melba Lozano
	04/16/01 02:24 PM

		 To: Mark Taylor/HOU/ECT@ECT, Jeff Blumenthal/Enron@EnronXGate, Susan
Musch/Enron@EnronXGate, Bjorn Hagelmann/Enron@EnronXGate, Tom
Moran/Enron@EnronXGate, Veronica Hill/ENRON@enronXgate, John
Swinney/Enron@EnronXGate
		 cc: Larry Joe Hunter/HOU/ECT@ECT, Lisa Lees/HOU/ECT@ECT, Stephanie
Sever/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Kelly
Lombardi/NA/Enron@Enron, Tara Sweitzer/HOU/ECT@ECT, Dawn C Kenne/HOU/ECT@ECT,
Torrey Moorer/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT, Kevin
Meredith/Corp/Enron@ENRON, Chris Walker/HOU/ECT@ECT, Chad South/NA/Enron@Enron
		 Subject: RGC3, PP-HP, Ethylene, and LLDPE Call & Put Approvals - 8 product
types!

Your review and approval of the following product types in the EOL
Datamanager is needed (for directions on approval , please see steps for
approval at the bottom of this e-mail). If you have any questions please call
me at ext. 58986.
******** DO NOT APPROVE PRODUCT TYPES BETWEEN THE HOURS OF 6AM -
11AM***********

Trader: Chad South
#1

RGC3 Call

US RGC3 Opt     CMAI      EC.30                    Jul-Dec01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Index minus the Strike Price.  The Option style and type shall be a European
Call ("EC").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall be from the Effective Date of 01 Jul 2001
to the Termination Date of 31 Dec 2001.

The Index for a month shall be the arithmetic average of the high and low
prices in Cents/Pound of Refinery Grade Propylene published under the
headings "North America Product Prices for (DATE): RG Propylene Contract -
Freely Neg." in the month-end issue of Chemical Market Associates, Inc.'s
Monomers Market Report effective for such month.

The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be pounds.

#2
RGC3 Put

US RGC3 Opt     CMAI      EP.30                    Jul-Dec01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Strike Price minus the Index.  The Option style and type shall be a European
Put ("EP").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall be from the Effective Date of 01 Jul 2001
to the Termination Date of 31 Dec 2001.

The Index for a month shall be the arithmetic average of the high and low
prices in Cents/Pound of Refinery Grade Propylene published under the
headings "North America Product Prices for (DATE): RG Propylene Contract -
Freely Neg." in the month-end issue of Chemical Market Associates, Inc.'s
Monomers Market Report effective for such month.

The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be pounds.
#3
PP-HP Call

US PP-HP Opt     CMAI      EC.30                    Jul-Dec01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Index minus the Strike Price.  The Option style and type shall be a European
Call ("EC").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall be from the Effective Date of 01 Jul 2001
to the Termination Date of 31 Dec 2001.

The Index for a month shall be the low price in Cents/Pound of Polypropylene
- homopolymer general purpose published under the headings "North America
Product Prices for (DATE): Polypropylene Domestic" in the month-end issue of
Chemical Market Associates, Inc.'s Monomers Market Report effective for such
month.

The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be pounds.
#4

PP-HP Put

US PP-HP Opt     CMAI      EP.30                    Jul-Dec01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Strike Price minus the Index.  The Option style and type shall be a European
Put ("EP").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall be from the Effective Date of 01 Jul 2001
to the Termination Date of 31 Dec 2001.

The Index for a month shall be the low price in Cents/Pound of Polypropylene
- homopolymer general purpose published under the headings "North America
Product Prices for (DATE): Polypropylene Domestic" in the month-end issue of
Chemical Market Associates, Inc.'s Monomers Market Report effective for such
month.

The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be pounds.
#5
Ethylene Call

US Ethylene Opt     CMAI      EC.30                    Jul-Dec01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Index minus the Strike Price.  The Option style and type shall be a European
Call ("EC").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall be from the Effective Date of 01 Jul 2001
to the Termination Date of 31 Dec 2001.

The Index for a month shall be the Cents/Pound price of Ethylene Monomer
published under the headings "North America Product Prices for (DATE):
Ethylene Net Transaction Contract" in the month-end issue of Chemical Market
Associates, Inc.'s Monomers Market Report effective for such month.

The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be pounds.
#6

Ethylene Put

US Ethylene Opt     CMAI      EP.30                    Jul-Dec01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Strike Price minus the Index.  The Option style and type shall be a European
Put ("EP").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall be from the Effective Date of 01 Jul 2001
to the Termination Date of 31 Dec 2001.

The Index for a month shall be the Cents/Pound price of Ethylene Monomer
published under the headings "North America Product Prices for (DATE):
Ethylene Net Transaction Contract" in the month-end issue of Chemical Market
Associates, Inc.'s Monomers Market Report effective for such month.

The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be pounds.
#7

LLDPE Call

US LLDPE Opt       CMAI     EC.30                    Jul-Sep01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Index minus the Strike Price.  The Option style and type shall be a European
Call ("EC").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall correspond to the date(s) set forth in the
Product description on the Website.

The Index for a month shall be the arithmetic average of the high and low
Cents/Pound prices of Linear Low Density Polyethylene - Butene film grade
published under the headings "North America Product Prices for (DATE): LLDPE
Domestic" in the month-end issue of Chemical Market Associates, Inc.'s
Monomers Market Report effective for such month.
The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.
The unit of measure against which the price is quoted shall be pounds.

#8
LLDPE Put

US LLDPE Opt       CMAI     EP.30                    Jul-Sep01       c/LB

A financial Option Transaction with Enron North America Corp., under which
the Seller receives the Premium and the Buyer receives the Cash Settlement
Amount. Each calendar month during the Term of the Transaction will be a
Determination Period, provided that if the Term of the Transaction is less
than one calendar month the Determination Period shall be the Term of the
Transaction.  The Notional Quantity per Determination Period shall be
calculated from the volume submitted by Counterparty on the Website in
accordance with the unit of measure.  The Premium shall equal the product of
(i) the price submitted by Counterparty via the Website, multiplied by (ii)
the Notional Quantity per Determination Period, multiplied by (iii) the
number of Determination Periods during the Term of the Transaction. The
Payment Date for the Premium shall be 2 business days after the Trade Date of
the Transaction. The Payment Date(s) for the Cash Settlement Amount shall be
5 business days after the Cash Settlement Amount is determinable. The Cash
Settlement Amount shall be the greater of (i) zero, or (ii) the product of
(a) the Notional Quantity per Determination Period, multiplied by (b) the
Strike Price minus the Index.  The Option style and type shall be a European
Put ("EP").  Automatic Exercise is Applicable.  The Strike Price for the
Transaction shall be as set forth on the Website.

The term of the Transaction shall correspond to the date(s) set forth in the
Product description on the Website.

The Index for a month shall be the arithmetic average of the high and low
Cents/Pound prices of Linear Low Density Polyethylene - Butene film grade
published under the headings "North America Product Prices for (DATE): LLDPE
Domestic" in the month-end issue of Chemical Market Associates, Inc.'s
Monomers Market Report effective for such month.

The price is quoted in cents (US) per unit of measure which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be pounds.


We have received the executed First Amendment to ISDA Master Agreement dated
as of December 1, 1999.  This amendment adds the British Columbia Securities
Act representation to the master.  Copies will be distributed.

Confirmation Desk:  you can stop adding the rep to the confirms now.


I spoke with Chris Littlefield (legal) a few moments ago and he would like
for you to call Dial's treasury person, Dave Riddiford.  Dial really wants an
explanation of how/why all numbers were selected for inclusion in the
Schedule and CSA, including:

(1)  3rd p. D/F Threshold Amount
(2) whether Credit Event Upon Merger can be tied to ratings downgrade (I
explained the MAC trigger)
(3) Collateral Threshold  (and, by the way, Chris says that he never
understood that Dial would ever have to post)
(4) Min. Transfer/Rounding

Not too bad.  Call me if you have any questions.  From the legal perspective,
I have only to resolve recording and arbitration.  Thanks.  Sara


An Agreement to Interconnect and Operate Natural Gas Pipeline Facilities has
been executed between HPL and the Rio Nogales Power Project, L.P.  This
agreement will provide for the physical means by which gas can be delivered
from the HPL South Texas Joint Venture Pipeline System and the Rio Nogales
Power Plant located near Seguin, Texas.  The interconnect will be built on
the South Texas System near the city of Prarie Lea.

The power plant is presently in construction.  The plant owners will build a
new pipeline to connect to the HPL system.  The new pipeline is anticipated
to commence construction around June 1, 2001.  Under the Interconnect
Agreement HPL will, at its expense, install the hot tap and valve and then be
reimbursed for its actual expenses.  Expenses are estimated to be less than
$150,000.

A Guaranty Agreement has concurrently been executed between HPL and
Constellation Power, Inc.   This agreement by the parent of Rio Nogales Power
Project, L.P. provides a corporate guaranty for payment of the work by HPL up
to $300,000.  With receipt of the executed Guaranty, Facility Planning and
Enginneering are released to recommence discussions with Rio Nogales and
thier pipeline constructor, Pinnacle, to finalize details of the
interconnection.

In recognition of the prospective close between HPL and AEP, HPL will attempt
to have the work performed after the close.  If the currently anticipated
close date of June 1st occurs, this schedule should not be a problem.  If the
work can be scheduled after close, the receivable to HPL should be
straightforward and not require any special handling.  I therefore request
that Jim Haden and Bob Camp coordinate with me regarding the schedule for the
work.

I would also request that Ken Kaase provide our Joint Venture Partner
notification of the interconnection agreement or whatever advice is required
under the JV Agreement.  Ken, I will provide you whatever details are needed
for this purpose.

The interconnect is located on the system that would deliver future volumes
to the City of San Antonio should HPL be sucessful in negotiating such a
contract.  It is also the system that could service the new Austin peakers
either through new pipe or through a third party transport.  To date, there
is no gas sales or transportation agreement with Rio Nogales.  Because of the
current state of hydraulics on this system, and the multiple potential loads,
all  interested individuals need to be cognizant of a need to coordinate and
plan for handling these prospective loads towards maximizing the benefit of
the asset .

Please advise if there are any questions or concerns.


nope, and stop

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 10:54 AM
To:	Maggi, Mike
Subject:	RE:

isn't that being too nice?  so i am freaking out about my job again.


FYI

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 04/04/2001 08:42 AM -----

	Kaye Ellis
	04/04/2001 08:20 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Reminder of Brokerage Agreements Meeting Tomorrow at 1:30 pm in 38C1

Here is the email I sent out listing when each Brokerage Agreement Meeting
would be held..
----- Forwarded by Kaye Ellis/HOU/ECT on 04/04/2001 08:18 AM -----

	Kaye Ellis
	03/13/2001 03:14 PM

		 To: Cheryl Nelson/NA/Enron@Enron, Samantha Boyd/NA/Enron@Enron, Stephanie
Panus/NA/Enron@Enron
		 cc:
		 Subject: Reminder of Brokerage Agreements Meeting Tomorrow at 1:30 pm in 38C1

----- Forwarded by Kaye Ellis/HOU/ECT on 03/13/2001 03:12 PM -----

	Kaye Ellis
	02/22/2001 11:15 AM

		 To: Cheryl Nelson/NA/Enron@Enron, Samantha Boyd/NA/Enron@Enron, Stephanie
Panus/NA/Enron@Enron
		 cc: Sara Shackleton/HOU/ECT@ECT, Keegan Farrell/NA/Enron@Enron, Holly
Keiser/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: Brokerage Agreements Meetings

Please put the following dates on your calendar for the Brokerage Agreements
meetings.

Monday, February 26 at 2 pm in 38C1

The following meetings will all be held at 1:30 pm in 38C2:

March 14 March 28
April 11  April 25
May 9  May 23
June 13  June 27
July 11  July 25
August 8 August 22
Sept. 12 Sept. 26
Oct. 10  Oct. 24
Nov. 14  Nov. 28
Dec. 12  Dec. 26

Please let me know if you have any conflicts.

Thanks
Kaye


Enron employees may find the current circumstances stressful.  We want to remind you that Enron's Employee Assistance Program (EAP) is still available and currently offering services to assist you and your family.

Group Discussions
Beginning this week, Enron's EAP provider, Innovative Resources Group, will be facilitating group discussions for employees who are interested in attending. These sessions are designed to address the challenges employees may be facing and to suggest ways to minimize the impact of stress on employees and their families. These sessions will be held on Wednesday, January 30 and Thursday, January 31 at the following times in EB32C2:

	9:00 am -- 10:00 am
	11:00 am -- 12:00 pm
	1:30  pm --  2:30 pm
	3:30 pm --   4:30 pm

No advance registration is necessary -- simply come to EB32C2 at the scheduled day and time that is most convenient for you.

Onsite Confidential Counseling / 24 Hour Hotline
EAP Counselors are available for individual, confidential appointments onsite in the Enron Building or at a variety of neighborhood locations.  Counselors are also available via telephone 24 hours a day, seven days a week for Enron employees in all locations.  The EAP counseling service is provided at no cost to employees and their family members.  To schedule an appointment or speak with a counselor, please call the onsite office at 713-853-6057 or the 24-hour number at 1-800-345-1391.

Informational Brochures
Additional information about EAP programs will be available in the Body Shop, the Health Center on the third floor of Enron Center North and soon in the common kitchen areas on all floors of the Enron Buildings.

Websites
The following links may also provide helpful information:
www.stress.org -- This is the website of the American Institute of Stress. The site provides general information on stress management and links to other related sites.
www.wellnessjunction.com -- This website has been developed by Health Resources Publishing and provides targeted information on trends in wellness and health promotion.


did you ever send that check


Rick

One more fyi.

I prepared this letter as per top management request. Enron needs to make it
clear what our view is on caps, Annex V, fixing MAE, etc.

LM
---------------------- Forwarded by Luiz Maurer/SA/Enron on 05/29/2001 02:29
PM ---------------------------

David M Rosenberg
05/29/2001 11:06 AM
To: Luiz Maurer/SA/Enron@Enron
cc: Remi Collonges/SA/Enron@Enron, Adriana Domingues/SA/Enron@Enron, Sergio
Assad/SA/Enron@Enron, Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Fred
Sampaio/SA/Enron@Enron, Jose Lucio Reis/SA/Enron@Enron, Debora
Klinger/SA/Enron@Enron, Joao Carlos Albuquerque/SA/Enron@Enron, Orlando
Gonzalez/SA/Enron@Enron, Joe Kishkill/SA/Enron@Enron, Sami
Arap/SA/Enron@Enron, Brett R Wiggs/SA/Enron@Enron, Karla
Azevedo/SA/Enron@Enron, Luiz Baccaro/SA/Enron@Enron

Subject: Re: ASMAE taking the [wrong] view on Annex X - Ignorance or bad
faith?

Luiz,

Generally an excellent job.

I would make a stronger point of the fact that many technical experts (us
included) believe that cost-of-defecit should be multi-tiered, and that even
the first tier should be higher.  I also wouldn't concede that changing the
cost of defecit is a change of the rules.  Nevertheless, leaving it where it
is probably the best compromise between true market incentives and political
pressures.

I would also strengthen the arguments supporting the MAE: e.g. there is no
substitute for an efficient central clearing mechanism with accurate price
signals, credit integrity, and timely cash settlement.  I WOULD NOT make the
resolution of Angra II a pre-condition for the continuing well-being of the
MAE.   Let's just get the market working now (e.g. governance,
penalties/guaranties, accounting) on an ongoing basis; I think that the issue
of Angra II can be treated separately.

Given the current discussion vis-a-vis the constitutionality of ammending the
Consumer Protection Code by executive fiat, I agree with your decision to
avoid the discussion of pass-throughs.

--DMR

Luiz Maurer
29/05/2001 10:28
To: David M Rosenberg/SA/Enron@Enron, Remi Collonges/SA/Enron@Enron, Adriana
Domingues/SA/Enron@Enron, Sergio Assad/SA/Enron@Enron, Jose
Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Fred Sampaio/SA/Enron@Enron,
Jose Lucio Reis/SA/Enron@Enron, Debora Klinger/SA/Enron@Enron, Joao Carlos
Albuquerque/SA/Enron@Enron, Orlando Gonzalez/SA/Enron@Enron, Joe
Kishkill/SA/Enron@Enron, Sami Arap/SA/Enron@Enron, Brett R
Wiggs/SA/Enron@Enron, Karla Azevedo/SA/Enron@Enron, Luiz
Baccaro/SA/Enron@Enron
cc:
Subject: Re: ASMAE taking the [wrong] view on Annex X - Ignorance or bad
faith?

Gentlemen:

Here is the letter for your review

Time is of the essence.

Ideally,we should send it today.  Parente should get acquainted with the
issue before Mario Arce makes a final decision.

LM

David M Rosenberg
05/28/2001 09:42 AM
To: Remi Collonges/SA/Enron@Enron
cc: Luiz Maurer/SA/Enron@Enron, Adriana Domingues/SA/Enron@Enron, Sergio
Assad/SA/Enron@Enron, Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Fred
Sampaio/SA/Enron@Enron, Jose Lucio Reis/SA/Enron@Enron, Debora
Klinger/SA/Enron@Enron, Joao Carlos Albuquerque/SA/Enron@Enron, Orlando
Gonzalez/SA/Enron@Enron, Joe Kishkill/SA/Enron@Enron, Sami
Arap/SA/Enron@Enron, Brett R Wiggs/SA/Enron@Enron, Karla
Azevedo/SA/Enron@Enron, Luiz Baccaro/SA/Enron@Enron

Subject: Re: ASMAE taking the [wrong] view on Annex X - Ignorance or bad
faith?

I think it's a great idea, Luiz.  How about a paper organized around Remi's
four points with you developing the arguments (such as the argument for
contract sanctity included in this e-mail chain).  Perhaps Orlando and / or
Kish could get a meeting with Parente to present the paper and explain how it
is a comprehensive roadmap to permanently reslove the problem.

--DMR

Remi Collonges
28/05/2001 08:57
To: Luiz Maurer/SA/Enron@Enron, Adriana Domingues/SA/Enron@Enron
cc: Sergio Assad/SA/Enron@Enron, Jose
Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Fred Sampaio/SA/Enron@Enron,
Jose Lucio Reis/SA/Enron@Enron, Debora Klinger/SA/Enron@Enron, Joao Carlos
Albuquerque/SA/Enron@Enron, Orlando Gonzalez/SA/Enron@Enron, Joe
Kishkill/SA/Enron@Enron, David M Rosenberg/SA/Enron@Enron, Sami
Arap/SA/Enron@Enron, Brett R Wiggs/SA/Enron@Enron, Karla
Azevedo/SA/Enron@Enron, Luiz Baccaro/SA/Enron@Enron
Subject: Re: ASMAE taking the [wrong] view on Annex X - Ignorance or bad
faith?

I think it is a good idea to state our position on Annex V and to take this
chance to reaffirm our belief in the following 4 basic principles:

1. Contract sanctity (Annex V holds, all contracts hold)
2. No caps on spot prices (if Brazil still wants to attract private funds in
new generation)
3. Pass through of MAE price at LDC level for end-user consumption above
their respective quota
4. Brazil needs MAE to settle: make it work.  Only way: reinforce credit
worthiness of all MAE members.

Remi

Luiz Maurer
05/28/2001 08:16 AM
To: Sergio Assad/SA/Enron@Enron, Jose
Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Fred Sampaio/SA/Enron@Enron,
Jose Lucio Reis/SA/Enron@Enron, Debora Klinger/SA/Enron@Enron, Joao Carlos
Albuquerque/SA/Enron@Enron
cc: Orlando Gonzalez/SA/Enron@Enron, Joe Kishkill/SA/Enron@Enron, Remi
Collonges/SA/Enron@Enron, David M Rosenberg/SA/Enron@Enron, Sami
Arap/SA/Enron@Enron, Brett R Wiggs/SA/Enron@Enron, Jose Lucio
Reis/SA/Enron@Enron, Karla Azevedo/SA/Enron@Enron, Luiz
Baccaro/SA/Enron@Enron
Subject: ASMAE taking the [wrong] view on Annex X - Ignorance or bad faith?

Last Friday, Patricia Arce, (Mario Arce's daughter and a full time  ASMAE
employee) was expressing her [distorted] views  to the press on why
generating companies should not abide by Annex V. She was not speaking on
behalf of ASMAE: however, she was probably reflecting ASMAE view.

I did not mean to shoot the messenger, but I could not refrain myself from
expressing an opposite opinion.

There are two problems in Patricia's view:

1) She is not supposed to express any views on contracts. MAE should only
settle contracts, but never attempt to arbitrate or solve bilateral contract
disputes. The lack of clarity on this point is the sole responsible for MAE's
frustrated attempt to solve the Angra II - Furnas conflict in the last 6
months.  Informativo Regulat?rio # 4 explores the issue in more detail.

2) She was dead wrong. Quite na<ve arguments.

A few arguments why Gs should indeed abide by Annex V (we may use externally,
as you see fit)

1) Gs were forced to sign Initial Contracts.
 * So what? It is a regulated contract by nature, as so many others, such as
CUST, CUSD, CCT, CCD. Does it mean that parties signing those other
agreements should not abide by their clauses?

2) Gs and Ds did not have chance to negotiate terms and conditions
 * So what? I asked Patricia why should any agent sign the Market Agreement
without any chance to negotiate its terms (it is by definition an adhesion
contract). Does it mean that agents should not abide by the MAE Agreement
provisions? Guess what the answer was? None

3) Some Gs did not sign Annex V - e.g. Furnas, which [apparently] disobeyed
Annel's instructions (as per Law 9.648/98)
 *  This is serious
 *  That means that in addition to not be bound by Contract, those Gs do not
want to abide by Law? No response

4) Some companies do not have Annex V
 * So what? Discussion is about Annex V
 * Those companies should follow specific provisions on their supply contracts

6) Ttariff (energy price) was not subject to negotiation as part of the
Initial Contracts - therefore, they were not able to price the risk
represented by Annex V
 *  So what?
 *  Many contracts have regulated prices. All use of system contracts have
regulated prices.
 *  Furthermore, the privatized generators had chance to price the Annex V
risk. Why giving them a windfall now? (Since it is a zero sum game, a
windfall for generators is tantamount to a loss to distributors)

7) Annex V was not designed to deal with rationing: it was designed to
mitigate hydrological risks due to central dispatch
 * Wrong
 *  ERM (Mecanismo de Realoca??o de Energia) was the mechanism put in place
to deal with risks deriving from a central dispatch in a hyper tight pool
operation
 *  Annex V was indeed designed to deal with rationing. It is called "dry
period relief" clause. It was proposed by the generators and approved by
Annel. The spot price is a "proxy" for the depth of rationing. One should not
evoke rationing.

I think it is advisable to have a strong legal opinion on how Annex V is
"bullet proof". In the meantime, let me share my views:

 * There is very limited room for negotiation whatsoever on Annex V and on
the [ridiculous] proposal made by generators that merchant plants should
collect part in cash and part of their sales in [junk] bonds. We should make
this clear at the outset.

 *  We should make Minister Patente realize  that Mario Arce's proposal is
non-sense. Changing established contracts or setting caps on spot prices  is
a bad precedent. No bail out for the ones who did mitigate perfectly known
risks. A cap on spot is equivalent to what the Central Bank did for Makra and
Fonte-Cindam (and became a public scandal) .  If we do want to create a
market , we need to have responsible contracting. Irresponsible contracting
should not be forgiven. If we do it, we will create a bad precedent and a
poor environment for contracting. We have to show Minister Parente that
irresponsible contracting has to be penalized at market rates (no caps on
spot). Irreponsible contracting will not expand capacity. Breaching contracts
will create an uncertain environment for new PPAs. Crisis will get worse and
worse.

 *  Generators should have the burden of proof.  In the meantime, Annex V is
effective and should be enforceable

 * Regarding California case, as mentioned by Mario Arce: It is a totally
different situation. In California D/Cs were not allowed to contract. In
Brazil they were strongly encouraged. Generators who signed Annex V could
also have hedged their residual risks on Annex V.They did not. They acted
irresponsibly. They second-guessed regulations. They did not help in
expanding capacity. They knew goverment will bail them out and revoke Annex
V.

 *  The argument "no one should lose, no one should gain" during rationing is
inconsistent with market signals. Some one has to lose, some one has to gain
by definition. And [hopefully] someone has to go bankrupt. This will be a
great lesson. People will start taking market signals more seriously.
Otherwise, there will never be expansion and there will never be a market.

 *  We have to be as transparent as possible.

Finally, I suggest Enron to write a position paper on our own view on Annex V
and caps on spot and deliver it to Minister Parente early this week.

I volunteer to prepare a first draft, if you guys agree it is a good idea.

LM


You did, it was part of another email. Tks - Bob

 -----Original Message-----
From: 	Farmer, Daren J.
Sent:	Wednesday, January 02, 2002 11:04 AM
To:	Superty, Robert
Cc:	Olsen, Michael
Subject:	RE: NETCO Items

Bob.

I could have sworn that I sent you this information earlier.  But I can't find it in my e-mail anywhere, so here it is:

Highest Priority
El Paso Gas Transmission Texas Pipeline (formerly PGE Texas and Valero)	Hub contract, Park & Lend contracts, inter- and intrastate transport
East Texas Gas Transmission (Duke Energy Field Services)			Cartwheel agreement, transport

Secondary Priority
Guadalupe Pipeline (Duke Energy Field Services)					Intra- and interstate transport
Oasis Pipeline									"	"	"	"
TXU Gas Distribution (Lone Star Pipeline)						"	"	"	"
Houston Pipe Line								"	"	"	"
El Paso Field Services Channel							"	"	"	"
Oneok Westex (Westar)								"	"	"	"
Kinder Morgan Texas Pipeline (Midcon)						"	"	"	"
Tejas Pipeline

The contracts on the pipes listed under "Highest Priority" are required for us to trade in the 3 main areas in Texas (EOL).  We must have these on day one.  The secondary contracts/pipes will be used soon after start up and are ranked in order of importance.  Please let me know if you have any questions.  Again, I thought that I sent this to you a couple of weeks ago. Sorry for the delay.

D
 -----Original Message-----
From: 	Superty, Robert
Sent:	Wednesday, January 02, 2002 9:50 AM
To:	Farmer, Daren J.
Cc:	Calcagno, Suzanne
Subject:	RE: NETCO Items

Darren, plan is to have the necessary contracts in place under the new NETCO name so we can do business on all key pipes. Regarding the Intrastates I suggest you think about the key ones so we have them on the list and get basic contracts in place once we have a new name and parent. Also what services you want on each so we get all the necessary contracts done.

I'll get you some budget info shortly, tks - Bob

 -----Original Message-----
From: 	Farmer, Daren J.
Sent:	Wednesday, January 02, 2002 9:43 AM
To:	Superty, Robert
Subject:	RE: NETCO Items

Bob,

For the Texas Desk, Mike Olsen and I will start out handling the scheduling activities.  As we start up we will not be doing a lot of shipping on the intrastate pipes.  We will primarily be utilizing hub and cartwheel agreements and net outs.  Trading primarily on the Waha, Katy , and Carthage hubs.  I will cover Katy and Carthage.  Mike will continue to cover Waha and any shipping activities on the intrastate pipes.  I will need a second person fairly soon after we begin trading again (within a month or two).

What are you thinking that we need to look into on the intrastates?

Also, with message of setting up new budgets, can you have Brandy send me a copy of the budget we had in place for Texas 2002?

Thanks.

D

 -----Original Message-----
From: 	Superty, Robert
Sent:	Wednesday, January 02, 2002 8:51 AM
To:	Kinsey, Lisa; Jaquet, Tammy; Olinger, Kimberly S.; Calcagno, Suzanne; Farmer, Daren J.; Lamadrid, Victor; Sullivan, Patti; Gay, Randall L.
Cc:	Jackson, Brandee; Hall, Bob M
Subject:	NETCO Items

Wanted to share the latest communication on NETCO. This is all good news and exciting to see that things will be moving on a fast track from this point forward. I will be pulling you together and asking for some information to meet the plans and deadlines listed below.

For a start please review your pipe coverage that is planned on your desk with the NETCO team you will have to work with and forward me that breakdown. I know you took a preliminary look at this but I want you all to rethink and give me a "final or startup" list. The list you gave me on the contracts required for NETCO on the pipelines has been consolidated and is being reviewed. I believe we need to take a look at some of the Intrastates and key LDC's and get that info on the list. Seating plan should be simple once we get a better handle on the layout for 5 & 6. I'll try and get some details today. Don't know if we will be allocated spots on 6. IT systems layout and structure is already being planned/discussed. Most likely we will get involved in some testing once they start laying out the new architecture.

In addition any other items for a re-start that you can think of please forward to me.

Of course we still have the major hurdle of securing a buyer and once/if we do what do they actually submit a bid to purchase. Let's be optimistic and hope they are interested in the NETCO structure that has been laid out. Regardless we still need to do all of the tasks listed below to get ready.

Thanks - Bob

The New Year has arrived and we really to finalize a lot of the work with regards to moving into NETCO.  Obviously we still do not have a deal but the deadline is approaching and preparations need to be finalized.

The main areas to focus on over the next week are:-

(i) 	Re-start/Integration Plans (due on Jan 7)				To be forwarded to Louise
	These plans need to be detailed and show clear detailed timelines and detailed responsibilities for getting us up and running as soon as possible.
	The current restart date is January 21, 2001 but may be pushed forward to January 14, 2002.
(ii)	Budget (due Jan 3, 2002)						To be forwarded to Faith Killen
	First year budget to include all start up costs (some of which can be amortized)
(iii)	Seating Plans								Tammy Shepperd to co-ordinate
	We need to start the planning process for seating as we will be living on floors 5 & 6 of the Enron South building.
	I have asked Tammy Shepperd to commence the seating plan and we would look to start the moves as soon as possible but with a large number occuring around January 11,2002.
(iv)	Due Diligence
	We continue the process with two new companies this week (Wednesday and Thursday). Andy Zipper is taking the lead for the company arriving on Wednesday, please help him with his requirements.


Get set up on MSN messenger

 -----Original Message-----
From: 	Dorland, Dan
Sent:	Wednesday, December 12, 2001 9:43 AM
To:	Dorland, Chris
Subject:	RE: Strong decade foreseen for real estate

and Clayton Research.

 -----Original Message-----
From: 	Dorland, Chris
Sent:	Wednesday, December 12, 2001 11:42 AM
To:	Dorland, Dan
Subject:	RE: Strong decade foreseen for real estate

remax wrote the report

 -----Original Message-----
From: 	Dorland, Dan
Sent:	Wednesday, December 12, 2001 8:38 AM
To:	Borg, Jeff; 'kdorland@flint-energy.com'; Dorland, Chris
Subject:	Strong decade foreseen for real estate

December 12, 2001
Strong decade foreseen for real estate
'Demand for all types of housing is set to surge': Aging Baby Boomers, their children and immigrants to drive residential prices
Paul Vieira
Financial Post
The tail end of the Baby Boom generation, along with children of aging boomers and new immigrants to Canada, will keep the residential real estate market strong over the next 10 years, driving the average value of a house up 13%, a new study suggests.
"Demand for all types of housing is set to surge ahead over the coming decade, leading to robust activity, rising prices and a stable investment climate," says the study, jointly written by ReMax Ontario-Atlantic Canada, ReMax Western Canada and Clayton Research.
And Calgary will have the hottest real estate market, with housing prices set to climb 20% to 25% in the next decade, the study says.
Overall, the number of households will increase by 1.5 million over the next 10 years, leading to rising prices for existing homes and steady demand for newly built homes.
Peter Norman, vice-president of Clayton Research, a Toronto-based real estate consulting firm, said the increase will be fuelled by three factors: younger Baby Boomers, between the ages of 35 to 45, who are looking to buy their first home or upgrade from their current residence; the children of the older Boomers, generally 45 to 55, who will be entering the real estate market for the first time; and immigrants.
"Housing prices will remain quite firm over the next 10 years and move up in real terms" Mr. Norman said in an interview.
The combination of high rents and low rental vacancies, particularly in cities such as Toronto and Vancouver, will also help drive the housing market, as will the fact that there has been little or no construction of new rental units.
And mortgage rates are so low that buying is often as financially palatable as renting, Mr. Norman added.
The study concluded that the economy, although in a slump, is in much better shape than it was at the eve of the 1990s recession. Productivity and real income growth have recovered, unemployment is at lower levels than a decade ago, and the country's industrial structure has shifted away from a commodity and manufacturing base, the study said.
"A healthy, long-term economy will boost housing markets by keeping real incomes growing, real interest rates low, and providing confidence in the future performance of real estate assets."
Pamela Alexander, chief executive of ReMax Ontario-Atlantic Canada, said Calgary would be the hottest market in the country thanks to increasing oilpatch activity, migration from other parts of the country and its youthful population.
"Calgary is going through its renaissance period," Ms. Alexander said, adding that its average home price of $180,000 is still 30% to 35% cheaper than Vancouver or Toronto.
Toronto, with its average house price of $250,000, should see growth of 10% to 15%, Ms. Alexander said, because its population is heavily weighted toward 25 to 40 year olds -- who will buy their first home or upgrade -- and because of the scarcity of rental units.
Meanwhile, Ottawa, despite the high-tech downturn, remained one of the hottest housing markets with prices up 10% from a year ago. That market is expected to grow as the federal government increases spending and creates new departments, older civil servants retire and new people are brought in, and the high-tech sector rebounds.


Mike
We completed decontamination of the inlet filter at the selexol plant today.
It was dirty but
no liquid. There was some dried sludge in the bottom of the vessel and the
filters were
extremely dirty. We plan to do both of the filters on the discharge side
tomorrow.I got a phone
messsage from Jeff and he hasn't heard anything from PGE since the letter was
sent . We will
plan to bypass and clean the filter on the west side of the river, last one
on our system Saturday
unless we hear something different tomorrow. We will notify the PGE operators
of their plant
tomorrow of our plans.If anyone needs to contact me my pager number is
1-800-921-9564 and office
phone number is 505-260-4003. Leave a message on the office phone and it will
automatically
page me. I'll give everyone an update late tomorrow. We should have the hot
tap valves on location
tomorrow for the selexol injection. We plan to install the valves as soon as
they arrive.

Thanks RJ

By the way Bisti came on line today and they plan to run it tonight and be
back on location to
check on the unit tomorrow.


Thanks.

You can tell John that I have also forwarded both to him here at the office,
if he is still around.

RAR

>>> <Benjamin.Rogers@enron.com> 11/08/00 05:50PM >>>

John wanted me to send it to you.  We are going to ask Jinsung what the
differences are once he gets out of this meeting.  Thanks
Ben


Dear Mike:

Greetings from San Francisco!

Congratulations we have located on your behalf Roy Lichtenstein's 'Blue Note:
Composition #4'.? If you are serious about the artwork we will need a
commitment from you to acquire the piece for you.

Please contact me as soon as possible since this is a time sensitive matter.?
I will be in the gallery late this evening till 9pm PST and from
9:30am-6:00pm PST Tues. through Fri.

Have you received the package on the Matisse?? What do you think about the
artwork?

I look forward to hearing from you and Chris.

Most sincerely,

Virginia Repasky
Christopher-Clark Fine Art


---------------------- Forwarded by Kevin Kindall/Corp/Enron on 11/20/2000
04:47 PM ---------------------------

Kevin Kindall
11/07/2000 03:12 PM
To: jean eisel <je2n@andrew.cmu.edu>
cc:

Subject: Re: Recruiting

 Good afternoon.  Packing emails--its just my style :)

 Currently, it is my understanding that we would like to interview the Comp.
Fin. students during the same period that we interview the MBA's.
Tentatively speaking, one schedule should be sufficient.  I will attempt to
produce an official job description shortly.
 Kristen is out of town for the remainder of the week, so her response to any
inquiries may be delayed.  Her contact info:  kristin.gandy@enron.com  713
345 3214
 Regarding the satellite program, Vince is interested in the ECommerce
program.  We think that it would be easier to keep the program full as
compared to the Comp. Fin. program.

 It was a pleasure to be back in Pittsburgh and I enjoyed meeting all the
students from this year's Comp. Fin. class.  I look forward to seeing you in
a few weeks.

-Kevin Kindall

jean eisel <je2n@andrew.cmu.edu> on 11/06/2000 03:34:05 PM
To: Kevin.Kindall@enron.com
cc: sgould@andrew.cmu.edu

Subject: Re: Recruiting

Hi Kevin

Wow you sure do pack one e-mail.
I will try to answer questions...after each of you...look in the email
for answers.

--On Monday, November 06, 2000, 2:39 PM -0600 Kevin.Kindall@enron.com wrote:

>      Hello.  It was a pleasure to come back to CMU, and I enjoyed
> interacting with the students.  Vince K. has expressed interest in
> interviewing the Computational Finance students.  Enron will conduct first
> round interviews with the MBA students in December, and would like to set
> up seperate interviews for the Comp. Fin. students.  Enron would like to
> interview all the Pittsburgh based Comp. Fin students, and we need to
> select a date and a time.

We are excited that you want to interview the Comp finance students.

Do you want to do it in Dec. or before?  Let me know what best suits you.
Since there are only 16 individuals in the Pittsburgh area... we should be
able to accomodate you...Would you want one or two schedules..?

  What is the formal protocol in such matters?
>
All you need to do is let me know some ideal dates...and you send a job
description and names of the students you want to interview.

We will try to be as accomodating as possible.

>      Enron is also interested in the ECommerce students as we have
> ecommerce initiatives underway.   It is my understanding that Kristen
> Gandy will be the contact for such activities.

If you can send me an e-mail address for Kristen, I can get this strating
asap.
>
>      Regarding a Houston based satellite program, Vince needs a proposal
>      in writing.  Would you be so kind as to send one?

What program is Vince interested in having a satellite program?  When he was
here he seemed less intererted in Comp finance and more interested in
E-commerce.

I sent a note to Michael Shamos and Tridas discussing this.

Let me know which program and I will see if we can work anything out?

>      Thanks so much, and I look forward to seeing you again in a few
>      weeks.
>

Thanks Kevin for you speedy response.

>
>
>
>

Jean E. Eisel, Ph.D.
Associate Dean, Admissions, COC and Alumni Relations
GSIA
Carnegie Mellon University
Pittsburgh, PA 15213
412-268-2277
412-268-4146 (fax)
******************************************************************
Currently in the news:  Carnegie Mellon University MBA program ranked 14th
in Business Week's list of the best graduate schools of business in the
United States.
******************************************************************


Today is the signing deadline for full time and Intern offers from the
University of Texas. These are the
offers received at this point:

Intern     Full Time

Brenton Baxter    Hector Alviar   Henry Montana
Jiyeon Kim    Sebastian Bouivier  Anamaria Sanchez
Angelique Woods   Millie Gautum   Lauren Sclesinger
Dana Lipp    Heath Kendall   Amanda Schultz
Katherine Jett    Jeremy Lo   Ami Thakkar
Jana Pair    Christine Milliner

Note that there may still be some late signees and I will communicate that
information to the team. The entire
UT team is to be thanked and we couldn't have had a great Fall without
everybody and all their hard work, thanks
again.
 George Hope