David

The set-up for the financial trading is similiar except that the instructions
are relaid by e-mail each night to New York and Tokyo.  Tim Pateman
(authorised trader in London) sends details of positions and instructions on
prices / volumes.

The mail provide directions on pricing (off set basis on EOL) and volumes,
creating an envelope in which they can trade.
They  must call for further instructions if the price shifts by more than $10
($100 for Tin & Nickel)  or the position by more than 100 lots.

Regards
Andy

Tim Poullain-Patterson
09/11/2000 15:27
To: David Port/Market Risk/Corp/Enron@ENRON
cc: Andrew Cornfield/LON/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Sally
Beck/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, Mike
Jordan/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT,
Marcelo Parra/NYC/MGUSA@MGUSA

Subject: Re: Authorised Traders : Montreal & Chicago

David,

The business model you outline is actually the one we are implementing with
one big difference - the Head Trader in London (Sam Hainsworth) calls the
sales person each day to tell him what to do before they speak to any
customers. As you point out, these conversations are recorded so if the sales
person does anything other than what is agreed at the outset of each day,
then they will be red carded.

I refer you back to the memo supplementing the updated list of authorised
traders that I sent out and which Marcelo and Sam have discussed with
Commercial staff in both these offices (Shona and Bjorn have this memo), as
well as Marcelo's operational plan.

Clarification point - when Andy says "internally" he means that Commercial
(Rob Soeldner) is taking a lead in resolving Joe Robertson's concerns.

Regards,
Tim

From:  David Port @ ENRON
        09/11/2000 13:52

To: Andrew Cornfield/LON/ECT@ECT
cc: Bjorn Hagelmann/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Ted
Murphy/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron, Mike Jordan/LON/ECT@ECT,
Robert Soeldner/LON/ECT@ECT, Tim Poullain-Patterson/LON/ECT@ECT, Lloyd
Fleming/LON/ECT@ECT

Subject: Re: Authorised Traders : Montreal & Chicago

How about this for a business model for an origination and trading outfit.

salesperson talks to customer
customer agrees to trade
salesperson phones trading desk and gets price (trading desk is London or NY
- NB: all lines are taped)
salesperson tell customer
customers says ok
salesperson says "done" to customer and trading desk
trading desk books deal, middle and back office processes kicks in, sends out
and chases up confirm etc
accounting process identifies value added by salesperson and gives them a
piece of the price as a credit
no bank accounts or signing authority in sales office
no accountants, middle office people or other similar humans in the sales
office, just sales people
all hedging and risk taking resident in trading books in NY or London

Can we not make this work ?
DP

To: Bjorn Hagelmann/HOU/ECT@ECT
cc: Sally Beck/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, Shona
Wilson/NA/Enron@Enron, David Port/Market Risk/Corp/Enron@ENRON, Mike
Jordan/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Tim
Poullain-Patterson/LON/ECT@ECT

Subject: Re: Authorised Traders : Montreal & Chicago

Bjorn

As discussed, given Joe's comments below, a note to confirm that this being
dealt with internally.

Rob Soeldner has made it clear to Joe that:

Enron places great importance on trading controls. These are non-negotiatable.
The suggested course of action is not an option
We aren't seeking to close any of the Agency offices given implemetation of
these controls.

Joe is not in yet - Rob will be discussing with him further when the US gets
in.

Of note - Joe is on the commercial side,  Marcelo Parra who is responsible
for the operational side is fully onboard for the operational changes made.

Regards
Andy

---------------------- Forwarded by Andrew Cornfield/LON/ECT on 09/11/2000
11:07 ---------------------------

Joe Robertson@MGUSA
08/11/2000 20:38
To: Tim Poullain-Patterson/LON/ECT@ECT
cc: Andrew Cornfield/LON/ECT@ECT, Lloyd Fleming/LON/ECT@ECT, Marcelo
Parra/NYC/MGUSA@MGUSA, Michael Farmer/EU/Enron@ENRON@ECT, Naomi
Connell/LON/ECT@ECT, Robert Soeldner/LON/ECT@ECT, Sam
Hainsworth/EU/Enron@Enron@ECT

Subject: Re: Authorized Traders : Montreal & Chicago

As a practical matter the procedures outlined are not workable. We need to
find a way to go forward that works and can satisfy all concerned.

Either the people in these offices can be entrusted to transact and execute
business or we should consider closing these offices and relocating some of
the people which I do not believe makes any sense at all.

Joseph E. Robertson, Jr.
Enron Metals & Commodity Corp.
520 Madison Avenue
28th Floor
New York, NY 10022
Tel: 212.715.5254
Fax: 212.715-2357
E-mail: joe.robertson@enron.com


Larry,

During the past week I have completed the following activities on the Rogas
project:

1) Started the preactivity survey for the Rogas pipeline project - we have
completed from the Rogas railcar facility west to Enos Lane and south along
Enos Lane to the large KWB canal (at the point where the route turns west).
I
have also reviewed a proposed materials and equipment storage area at Kenny
Maltby's request.

2) I have continued to try to contact Jeff Single at CDFG regarding the
project...he was out most of last week and this week and will return
Thursday, March 1.

3) Coordinated with Scott Jones, Kenny Maltby, and Jeff Turpin (?, I believe
a consultant that Scott is working with) regarding compensation credit
purchase. I basically have provided explanations of terminology and answered
questions, to the extent of my knowledge. This has included input regarding
the ~41 credits that EOTT will have the right to use at Coles Levee once
paperwork is completed with CDFG.

Other activity:

1) 2-22 sent draft annual reports for EOTT 2081 permit for 1999 and 2000.

Plans for the remainder of this week:

1) Complete preactivity survey on Kern Water Bank (including route
adjustment
for SCE). Coles Levee preactivity survey will be completed during the first
part of next week. Subsequent to preactivity surveys and approvals from
property owners, agencies, and EOTT, we will begin implementation of
mitigation measures (trapping where necessary etc.).

2) Continue to attempt contact with Jeff Single to assist with getting
approval to AERA for compensation credit paperwork.

3) Coordinate and assist as needed.

Please call or e-mail if you have any questions. I understand that you are
having a meeting set-up with Jeff Single at CDFG. Please let me know if you
would like me to attend or help in any way.

Randi McCormick
Bio Resources Consulting


Wednesday, April 25 at 10 a.m. Houston time, join Sherri Sera, executive assistant to Jeff Skilling, on eSpeak.  Sherri will answer questions about how her job has changed since Jeff became CEO.

If you can't make the live event, post your questions on eSpeak  now.  Sherri will answer them during her eSpeak, and you can find the answers in the transcript later.

Have you been wondering what happened to the information about Enron's severance pay policy?   Would you like to see an innovation suggestion for the Saturn's ring that will connect the two Enron buildings?  Read the new postings in the "Office of the Chairman" category in eMeet .

Thanks for the great response to the new "Cost Reduction" category in the Idea Vault!  Visit the ThinkBank  today and read the suggestions for cutting costs; and, while you're there, add your own.


All the Best. Jim

You have meant a lot to countless people and their families.  The Gays in
particular will be forever in your debt.

Regards,

Rob, Dee, Chelsea, & Derek Gay

James M Bannantine
02/01/2001 02:34 PM
To: Sao Paulo Brazil - Office Staff, Rio de Janeiro Brazil - Office Staff,
Salvador Brazil - Office Staff, Buenos Aires Argentina - Office Staff, Enron
South America - Houston Staff
cc:

Subject: announcement

It is with mixed emotions that I inform you that I have decided to leave
Enron to pursue other interests.  It has been a pleasure and an honor to have
worked with all of you over the past few years.   I can be reached through
the following numbers:

Jim Bannantine

email at bannant@attglobal.net
phone at 55-11-247-4449
fax at 55-11-5548-5528


I think this one is your to approve (or someone in power).
----- Forwarded by Tana Jones/HOU/ECT on 03/30/2001 09:01 AM -----

	Chris Walker
	03/30/2001 08:52 AM

		 To: Jeff Blumenthal/Enron@EnronXGate, Susan Musch/Enron@EnronXGate, Frank
Hayden/ENRON@enronXgate, Bjorn Hagelmann/Enron@EnronXGate, Mark
Taylor/HOU/ECT@ECT, Marcus Nettelton/NA/Enron@ENRON, Tom
Moran/Enron@EnronXGate, Casey Evans/Corp/Enron@Enron, Melissa Ann
Murphy/HOU/ECT@ECT
		 cc: 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, Kevin Meredith/Corp/Enron@ENRON, Melba
Lozano/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT
		 Subject: Product Type Approval needed! (US East Power Phy Fwd Firm Unplan B
EES (EES ONLY))

Your approval is needed for the following new product type in Datamanager.
Please see the steps for approval below.

US East Power Phy Fwd Firm Unplan B EES (EES ONLY) (product type description)

US Pwr Unp B EES     (short description as it will appear on the Website)

A US Power Transaction with Enron Power Marketing, Inc. under which the
Seller shall sell and the Buyer shall purchase a quantity of Unplanned B
energy as defined in Section E of Operating Guide No 1 - System Control  of
the most recent version of the Operating Guides of the Electric Reliability
Council of Texas, Inc. ("ERCOT") equal to the Hourly Quantity at the Contract
Price.  The Contract Price shall be as submitted by the Counterparty via the
Website.
The transaction is for the applicable hours as set forth herein on each
Delivery Day for the Effective Date 01 Jun 2001 to the Termination Date 30
Jun 2001.
The transaction is for delivery or receipt of energy within ERCOT that is
"Undelivered" in accordance with the most recent version of the ERCOT Market
Guides.
The price is quoted in US Dollars per unit of volume, which will be the
Contractual Currency.
The unit of measure against which the price is quoted shall be megawatt-hours
(MWh) and the quantity shown shall be in MW's delivered in each applicable
hour for the duration of the Transaction (the "Hourly Quantity').
The transaction is for on-peak ("Peak") hours on each Delivery Day beginning
with the hour ending 0700 (6:00 am) and concluding with the hour ending 2200
(10:00 pm) Central Prevailing Time. "Delivery Day" means a day during the
term of the transaction that is a Monday, Tuesday, Wednesday, Thursday, or
Friday, excluding any day that is a NERC holiday.

STEPS FOR APPROVAL:

click the  START button
select  PROGRAMS
select  TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
 PROCEED WITH USUAL LOGIN/PASSWORD
click the Enron Online Production Cluster "START" button
select EnronOnLine (this is the EOL Datamanager)
 PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Awaiting Approval" (OR  "Partially Approved")
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up
TO APPROVE:  Right mouse click on "Approved"


Steve,

Thanks. I printed the fundamental info
last night and will wait for the open.

I negotiated a few contracts for  Enron's contribution to a book
(Enron was a sponsor).  It's not the same as negotiating as an author.

You can call a friend of mine, John Martin, and he will be able to help you.

Vince

John D. Martin
Carr P. Collins Chair in Finance
Baylor University, Finance Department
PO Box 98004
Waco, TX 76798
Phone: (254) 710 4473 (o) 4474 (sec)
 (254) 757 0852 (Home)
Fax  : (254) 710 1092 (Fax)
J_Martin@Baylor.edu
http://hsb.baylor.edu/html/martinj/home.html

Steve Bigalow@ENRON
01/31/2001 07:37 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: picks and publishers

Good morning,

First, a reminder that you want to see follow through strength on the picks
before going into them Secondly do you know anybody that has published a
book? I need some help in how to negotiate points in the contract.

Thanks,   Steve


No clue what you are talking about.  We'll be there. 2 adults 3kids

-----Original Message-----
From: Mehrer, Anna
Sent: Tuesday, September 18, 2001 8:26 AM
To: Platter, Phillip
Subject: RE: I have yet to hear from you!

They're between the "file" menu and the "reply" bar.

-----Original Message-----
From: Platter, Phillip
Sent: Tuesday, September 18, 2001 8:24 AM
To: Mehrer, Anna
Subject: RE: I have yet to hear from you!

What voting buttons?

-----Original Message-----
From: Mehrer, Anna
Sent: Monday, September 17, 2001 10:26 AM
To: Alonso, Tom; Anderson, Bob; Anderson, John; Badeer, Robert; Belden, Tim; Bishop, Serena; Blair, Kit; Bryson, Jesse; Buerkle, Jim; Chang, Fran; Chen, Lei; Cocke Jr., Stanley; Cox, Chip; Crandall, Sean; Cutsforth, Diane; Dean, Craig; Deas, Patty; Donovan, Terry W.; Driscoll, Michael M.; Dunton, Heather; Emmert, Caroline; Erwin, Kenton; Fischer, Mark; Freeman, Scott; Frost, David; Gang, Lisa; Gilbert, Scotty; Gray, Stan; Guzman, Mark; Hall, Steve C. (Legal); Hammond, Debra; Harasin, Leaf; Kaufman, Paul; Lackey, Chris; Law, Samantha; Lee, Eugene; Linder, Eric; Mainzer, Elliot; Mallory, Chris; Malowney, John; Maxwell, Dan; Mays, Wayne; McCarrel, Steven; Merriss, Steven; Meyers, Bert; Motley, Matt; Platter, Phillip; Porter, David V.; Poston, David; Purcell, Mike; Rosman, Stewart; Runswick, Stacy; Sarnowski, Julie; Sheidun, Donna; Slinger, Ryan; Solberg, Geir; Stokley, Chris; Swain, Steve; Swerzbin, Mike; Thomas, Jake; Villeggiante, Theresa; Warner, Nicholas; Williams III, Bill
Subject: I have yet to hear from you!

Kindly select one of the voting buttons above to let me know whether or not you will be coming to the company picnic this Saturday.  If you are planning to attend, please select the appropriate button for the number of family members who will be accompanying you. If your family cannot attend, you may bring a guest.

Thank you!
Anna
x3834


Are there certain plants where that have reliable generation numbers reported
each time?  Should I just track these generators?


Daren,

Today after trading, I need some education on Carthage and East Texas in general.

Bryan


Start Date: 1/4/02; HourAhead hour: 3;  No ancillary schedules awarded.  Variances detected.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002010403.txt

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 3 / Preferred: 359.14 / Final: 359.11)
  TRANS_TYPE: FINAL
  LOAD_ID: PGE3
  MKT_TYPE: 2
  TRANS_DATE: 1/4/02
  SC_ID: ENRJ


she is working on it daily.   it is a huge project.  do we have any disputes for December 2001 numbers that are not in DMS?   I am getting lots of emails.

 V

 -----Original Message-----
From: 	Grace, Rebecca M.
Sent:	Friday, May 24, 2002 8:47 AM
To:	Thompson, Virginia
Subject:	RE: matching Scheduling spreadsheets to EnPower

Virginia,

Has Lisa had any luck with this?

Rebecca

 -----Original Message-----
From: 	Thompson, Virginia
Sent:	Monday, May 06, 2002 6:48 PM
To:	Grace, Rebecca M.
Cc:	Gang, Lisa; O'Neil, Murray P.; Savage, Gordon; Rance, Susan
Subject:	matching Scheduling spreadsheets to EnPower

Grace-

  In regard to proposal #3 in your email:

 Our Scheduler Lisa Gang has volunteered to go thru and see that EnPower matches the Scheduling excel worksheets for December 2001 thru January 2002.  Some changes have been made already by Susan Rance, Gordon Savage, or myself.  Lisa will attempt to hi-light further changes that need to be made to EnPower and we will make those changes here in West Volume Management.  Hopefully this will get EnPower trued up so that we have more confidence that EnPower is correct according to our information.

 V


RIGZONE DAILY NEWS -- MONDAY, FEBRUARY 4, 2002
------------------------------------------------------------
Daily News from the worldwide upstream oil & gas industry
   to view the complete version, please go to:
   http://www.rigzone.com/newsletter_show.asp?n_id=214
------------------------------------------------------------


Kim, John Cogan and  I had called asking for copies of three transaction agreements.  I had not  seen those yet so I wanted to send an e-mail clarifying which dates we are  looking for.  Could you please fax copies of the transaction agreements  dated: 3/11/99, 11/28/00 & 6/1/01 to me at fax number 520-779-5338.   Thanks very much for your help with this.

Eileen Hamlin
Procurement Analyst


Start Date: 4/5/01; HourAhead hour: 24;  No ancillary schedules awarded.
Variances detected.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001040524.txt

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 24 / Preferred:   2.01 / Final:   1.99)
  TRANS_TYPE: FINAL
  LOAD_ID: PGE4
  MKT_TYPE: 2
  TRANS_DATE: 4/5/01
  SC_ID: EPMI


aroffwarg@bracepatt.com writes:
>Michael,
Ben Jacoby and I are still discussing the fundamental business terms
reflected in this draft.  Speaking for AES, we do not plan to execute as
is.  We expect to speak again tonight.

Steve Hase
>
>Attached please find a revised Amendment No. 1 to the Securities Purchase
>Agreement reflecting the new business terms.  This revised amendment
>should supercede the version I distributed on Friday.  In order to
>expedite the review process, I am simultaneously sending a copy of this
>document to ENA for their final approval; therefore, it remains subject
>to further changes if necessary.
>
>Best regards.
>
>
>Aaron P. Roffwarg
>Bracewell & Patterson, LLP
>South Tower Pennzoil Place
>711 Louisiana St.
>Houston, Texas 77002
>(713) 221-1117 (Ph)
>(713) 221-2184 (Fax)
>
>CONFIDENTIALITY STATEMENT:
>This information is intended only for the use of the individual or
>entity to which it is addressed and may contain information that is
>privileged, confidential, and/or exempt from disclosure under applicable
>law.  If you are not the intended recipient, you are hereby notified
>that any dissemination of this information is strictly prohibited.  If
>you have received this information in error, please notify us
>immediately by telephone at (713) 221-1117 or by fax at (713) 221-2184,
>and confirm that you have destroyed this information and any copies.
>Thank you.
>
>


Well, you two really raised the bar with that celebration.  It was just
fantastic.  Prentice said it's the best birthday she's ever had.  Thanks so
much for everything.  It was really neat.


You have received this email because you are listed as a security approver.
Please click
http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000010219&Page=
Approval to review and act upon this request.

Request ID          : 000000000010219
Request Create Date : 12/13/00 1:05:00 PM
Requested For       : matthew.hommel@enron.com
Resource Name       : EOL US Backoffice  Product Data Manager
Resource Type       : Applications


Next Steps

Resumes 1/10/01 in WDC.  Enron will continue to attend.

In the Room

Reliant submitted its proposal for blended rates and determining the real gap
between a blended wholesale price and potential retail rates. Reliant showed
that the gap is potentially quite small.
Reliant's effort was to move us away from the "Sharing the Pain" concept
offered by PG&E.
Enron again requested utility ideas for a quid pro quo, assuming any deal
could be struck.
Judge requested additional info from ISO and PX on market shares -- several
marketers explained their concern (e.g. Morgan Stanley, Merrill Lynch,
Avista) that this request gave credence to the "Pain" allocation proposal and
refused to give permission to release their data.  Enron said it was checking
on whether to release the data, but had the same concerns as the other
marketers on the principles.
Judge decided to use a joint statement for his report (see attached) to the
public. The statement was agreed to, in large part, by the participants.
Judge mentioned that 40% of the A/S market is apparently held by three
municipal/alien utilities.
Judges order urges participation by these parties.

Out of the Room

More bilateral discussions between utilities and gens.
Marketers discuss whether to continue to stay in the room and participate.


Shari:
Before I call their attorney about this I would like to talk with you briefly
about the open issues and how negfotiations in the past have gone.  Please
stop by.  I'll be tied up most of the afternoon until around 5 or so.
Carol


Information Management Weekly Milestones Report ) 02/09/01

Portal.
Portal development work continues for respective BU/FUs under Joe Wong's
direction.  This work is based on information collected from portal surveys.
Brandon Rigney's team committed to delivering the portal graphical treatment
by 2/16/01.  A new portal name is being discussed.  The decision for the
portal "look and feel" and the portal name will be made next week.  A
"progress before perfection" approach is planned for releasing the portal.

"Killer" or "sticky" applications for the new portal are being identified and
prioritized.  All task force members are required to identify five "killer"
or "sticky" applications by next week's IM Task Force meeting.

Some features of Hewlitt Packard's benchmark portal are being discussed and
targeted for development.

Tibco 2.0 version targeted as a requirement to provide personalized color
treatments for portal.  Allen Elliott to confirm licensing agreement for
Tibco 2 is in place.

Single sign-on capability will require changes to the producer portal
applications.  The single sign-on security task force has developed and
proposed a strategy to make this happen.  The portal development is working
this issue to ensure the eventual release of a single sign-on entry point for
the portal.

Philippe Bibi was provided a project update.  Philippe re-emphasized the need
to unveil a best practices portal that is simple, wanted by users, and
value-added for users.

UDM/ESE.
Inktomi and Verity appear to be the choice contenders.  Since Autonomy
requires an obtrusive amount of work on individual employees, interview
results predict users would not support this product type.  Consequently, the
task force does not expect to pilot Autonomy.

Business Analyst Paul Timberlake collected high level pricing for each
vendor.  Below is a table of that information.  Paul is working with GSS's
Peter Goebel to gain additional pricing support. Note, Paul's final report
will have extensive licensing information for each vendor.

Vendor	Initial Cost	Annual Support & Maintenance
Autonomy	$3,000,000	$540,000 / year support
Inktomi	$1,375,000	$206,250 / year support
Verity	$682,500
	($487,500  +  $162,500 + $32,500)	$130,000 / year support

IM Strategy Proposal.
Steve Kean attended the weekly IM Task Force meeting to get an update on the
IM Strategy Proposal.  Although the task force was suggesting an executive
point person be identified, Steve reminded the task force of the value of
grassroots efforts.  The task force will remain focused on identifying and
developing sticky portal applications to improve the flow of information
which ultimately should increase the flow of revenue.  Steve's message to IM
Task Force:  do what it takes to make it happen.

During the discussion with Steve, the task force reviewed HP's best practices
portal.  Steve would like to view the HP demonstration of their best
practices portal.

The Task Force team met with EES' Knowledge Management team to discuss a ONE
Enron approach to information management.  EES emphasized need for executive
management to encourage BU/FU IM/KM coordination.


Disregard the last email from me.  Attached are the prepared comments that
Steve Kean will have at the FERC meeting tomorrow.

----- Forwarded by Sarah Novosel/Corp/Enron on 11/08/2000 06:37 PM -----

	"Jeffrey Watkiss" <dwatkiss@bracepatt.com>
	11/08/2000 06:36 PM

		 To: <snovose@enron.com>
		 cc:
		 Subject:

 - 0133819.01


Shannon,

I am in the process of cleaning up the February folder.  When finished you
will see two DPR's - NG-Price & NG-PR-OPT.  Mike and John have decided to
split out the old NG-Price book so that swaps/futures go to John and
options/exchange options go to Mike.  I will call you as soon as I have it
done.  Tonight is the first night we are using the new book.  I have not
heard anything back regarding the January variance since I left you the voice
mail.

Thanks,

Errol

   Shannon McPearson @ ECT                02/26/2001 11:11 AM

To: Errol McLaughlin/Corp/Enron@ENRON
cc:

Subject: PG Book

Errol,

I received a book request for the NG Options Book (Code ZH). Will this be a
new roll in the NG Price book, associated with the PG book code? Also, I
noticed that the PG book has three DPR's in the February folder. Should I be
using the 022001NG DPR or the 022001NGmike and 022001NGjohn? What did you and
Todd decide to do with the January variance from the NGP&L? Too many
questions!!

Thanks!

Shannon


Here are  the files from the Broadmoor.  Please call me if you have any
questions.


please print on legal
----- Forwarded by Sara Shackleton/HOU/ECT on 08/11/2000 05:41 PM -----

	Jeff Nogid
	08/11/2000 05:27 PM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Jill's Position Reports

Sara

Here is one file with the 2 position reports

Have a great weekend.  Jeff


Dr. Kaminski,

I appreciate you for giving me a good
opportunity to have the interview.
The visit to ENRON was very impressive.
Thanks for arranging interviews with people
at research department and extra interview
at the ENRON net work.
It was good to have chance to meet such nice people,
and have a talk with them.

It was a good experience for me and
I hope we have chance to see each other.

Jinbaek

-----------------------------------------------------------------------
Jinbaek Kim
Ph.D Candidate
Dept. of Industrial Engineering and Operations Research
U.C.Berkeley
http://www.ieor.berkeley.edu/~jinbaek

Go Bears!

      :"'._..---.._.'";       `.             .'       .'           `.
     :      a   a      :                 __....._
     :     _.-0-._     :---'""'"-....--'"        '.
      :  .'   :   `.  :                          `,`.
       `.: '--'--' :.'                             ; ;
        : `._`-'_.'                                ;.'
        `.   '"'                                   ;
         `.               '                        ;
          `.     `        :           `            ;
           .`.    ;       ;           :           ;
         .'    `-.'      ;            :          ;`.
     __.'      .'      .'              :        ;   `.
   .'      __.'      .'`--..__      _._.'      ;      ;
   `......'        .'         `'""'`.'        ;......-'
         `.......-'                 `........'

On Tue, 24 Oct 2000 Vince.J.Kaminski@enron.com wrote:

>
> Jinbaek,
>
> We shall invite you to an interview in Houston.
>
> Vince
>
>
>
>
>
> Jinbaek Kim <jinbaek@ieor.berkeley.edu> on 10/23/2000 07:25:36 PM
>
> To:   vkamins@enron.com
> cc:
> Subject:  Resume,
>
>
> Dear Mr. Kaminski,
>
> Hi,
> I am a Ph.D student at IEOR department at U.C.Berkeley.
> Thanks for your presentation today.
> It gave me knowledge and interest in electricity markets,
> and your company.
> As you mentioned in the presentation,
> I send a resume to give me opportunity to learn more
> about your company.
> I hope I can join the super saturday event.
>
> Jinbaek
>
>
> (See attached file: resume.doc)
>
>
>


Just FYI.  Thought this might be of interest.  I sent the maps.

TK

-----Original Message-----
From: Harper, Colin [mailto:charper@tractebelusa.com]
Sent: Tuesday, August 07, 2001 1:32 PM
To: Lohman, TK
Subject: Power Plant Development

Could we please request 2 copies of your Transwestern System Map.  Our
development group is looking at a couple of plant opportunities near the
Transwestern System and we could use a couple of maps for our discussions.
My address is in the auto-signature below.  Thanks.

	W.   C O L I N   H A R P E R
	Senior Vice President - Fuels

	Tractebel Power, Inc.	http://www.tractebelpowerinc.com
	1177 West Loop South, Suite 310
	Houston,  TX  77027-9083
	Phone: +1-713.552.2002
	Fax: +1-713.599.2859
Em: mailto:charper@tractebelusa.com


Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com
----- Forwarded by Carol St Clair/HOU/ECT on 09/01/00 04:03 PM -----

	"MURIEL McFARLING" <MCFAM@andrews-kurth.com>
	08/31/00 09:13 AM

		 To: "David Barbour" <BARBD@andrews-kurth.com>, "DEBORAH LOWE"
<LOWED@andrews-kurth.com>, "MURIEL McFARLING" <MCFAM@andrews-kurth.com>,
"Michael Thimmig" <THIMM@andrews-kurth.com>, <alan.quaintance@enron.com>,
<brenda.l.funk@enron.com>, <carol.st.clair@enron.com>,
<charles.delacey@enron.com>, <Clement.abrams@enron.com>,
<David.roland@enron.com>, <Joel.ephross@enron.com>,
<tina.livingston@enron.com>, <trevor.randolph@enron.com>,
<trushar.patel@enron.com>, <mniebruegge@mayerbrown.com>,
<tellwood@mayerbrown.com>, <eawilburn@prickett.com>, <Tamullen@prickett.com>,
<kenton@rlf.com>, <mark.wolf@us.cibc.com>, <mercedes.arango@us.cibc.com>,
<schottla@us.cibc.com>, <aroberts@wilmingtontrust.com>
		 cc:
		 Subject: Enron/McGarret C

Attached is the McGarret C Series Supplement blacklined against the previous
version.  This document was inadvertently left off the distribution that was
sent out yesterday.

Muriel C. McFarling
Andrews & Kurth L.L.P.
1717 Main Street, Suite 3700
Dallas, Texas 75201
(214) 659-4461
(214) 659-4784 (fax)

 - 254319.wpd
 - 254319.doc


Attached are the documents I revised for Debra Perlingiere.

Pat Radford
Enron North America Corp.
EB3869
713-853-9282


Hi!

Where r u and how have u been? Saw in morning papers the news about
resignation of Sanjay Bhatnagar. ANy chance of ur coming to India?

Here things r all right. I have been in Daman for about a year now as
collector. It is a small union territory about 190 kms from Bombay. It's a
good weekend spot. If u visit Bombay, do drop in Daman. U can also plan a
journey to Diu, Dwarka, Somnath and Gir tiger reserve.

Keep in touch.

Vijay Kumar, IAS
Collector and District Magistrate, Daman
Collectorate,Moti Daman,
Daman 396220, India

Ph. O 0260 254698/254207
    R      254696
Fax        254922/254689
Mobile 09824066305

_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.


Enjoy.
-mg
 -----Original Message-----
From: 	Sorkina, Victoria
Sent:	Thursday, January 17, 2002 2:22 PM
To:	Guadarrama, Michael; Dinh, Christine
Subject:	RE: Mock-up

Here are the 2 mock ups. I have made a center part (with quotes) a little lighter so red wouldn't looks sp demanding.

victoria


PennWell Electric & Natural Gas Transmission Maps

Click Here To Download Order Form And Additional Information:

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http://ccprod.roving.com/roving/d.jsp?p=oo&m=f9g4jde6&ea=kimberly.watson@enron.com&id=f9g4jde6.rtflrqn6

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Dear Kimberly,

I'd like to extend a special thanks to you for being one of Hotwire's first
air travel customers.  I hope you enjoyed your travel-buying experience at
Hotwire - and I look forward to building a lasting relationship.

The best is yet to come at Hotwire.  We've dedicated ourselves to making our
service even better. Technical and customer service enhancements are
currently underway to ensure our site is reliable and easy to use.
Additionally, we will be extending Hotwire's travel savings to international
flights, hotels and rental cars in the near future.

Our mission is to make it easy for you to save money on travel by providing
great deals on the best brands.  Please feel free to drop me a line at
karl.peterson@hotwire.com to tell me how Hotwire can better achieve this
goal. Once again, thank you for your support.  I hope that you'll return to
Hotwire to let us save you more money on future travels.

Happy travels,
Karl Peterson
CEO and Co-founder, Hotwire

P.S.: Since you're one of Hotwire's first customers, we especially value your
opinions and feedback.  I'd like to invite you to join the Hotwire Advisory
Panel.  We'll occasionally ask panel members for their opinions about Hotwire
- what's working, what's not working, ideas for changes and your thoughts
about upgrades we're considering. If you're interested in participating,
email cheryl.law@hotwire.com.


[ANCFFWANC/997881138]
ZCZC ANCFFWANC
WRAK01 PANC 151315
FFWANC

  B U L L E T I N - IMMEDIATE BROADCAST REQUESTED.
FLASH FLOOD WARNING FOR VALDEZ GLACIER STREAM
NATIONAL WEATHER SERVICE, ANCHORAGE AK
4 AM ADT WED AUG 15 1901

THE NATIONAL WEATHER SERVICE IN ANCHORAGE HAS ISSUED A
FLASH FLOOD WARNING EFFECTIVE UNTIL NOON WEDNESDAY FOR PEOPLE
IN THE FOLLOWING LOCATION...

...RESIDENTS ALONG THE VALDEZ GLACIER STREAM...

VERY WARM CONDITIONS AND HIGH FREEZING LEVELS MAY HAVE RESULTED IN A
GLACIER DAMNED LAKE ON THE VALDEZ GLACIER RELEASING. REPORTS THIS
MORNING INDICATE WATER LEVELS RISING IN EXCESS OF TWO FEET ALONG THE
GLACIER STREAM BETWEEN MIDNIGHT AND 4 AM.

REMEMBER...SAFETY FIRST...
PERSONS IN THE FLOOD WARNING AREAS SHOULD BE ALERT FOR
RISING FLOOD WATERS AND BE PREPARED TO TAKE ACTION IF
LIFE OR PROPERTY IS THREATENED.

THE NEXT STATEMENT WILL BE ISSUED AT 10 AM ADT WEDNESDAY OR OR
SOONER.

NNNN

[ANCFFWANC/997881138]

EDIS-08-15-01 0612 PDT

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To update or terminate your subscription to this email service
visit our webpage at http://www.incident.com/edismail.html.

EDIS is operated by the Governor's Office of Emergency Services,
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its dependence on other systems, we cannot be responsible for
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i think i can scrounge one up

	Enron North America Corp.

	From:  Jeffrey C Gossett                           09/20/2000 09:40 AM

To: Eric Bass/HOU/ECT@ECT
cc:
Subject: Re:

I brought none of the below with me today.  have any extras?

	Enron North America Corp.

	From:  Eric Bass                           09/20/2000 09:29 AM

To: Matthew Lenhart/HOU/ECT@ECT, Timothy Blanchard/HOU/EES@EES, Jeffrey C
Gossett/HOU/ECT@ECT, Kenneth Shulklapper/HOU/ECT@ECT, Nick
Hiemstra/HOU/ECT@ECT, Luis Mena/NA/Enron@Enron, Amir Ahanchian/Enron
Communications@Enron Communications
cc: Brian Hoskins/Enron Communications@Enron Communications
Subject:

By the way, wear your grey "HEAT" jerseys to the game and bring a blue
t-shirt as an extra.


Not unreasonably withholding consent and agreeing to the assignment are a bit
different in my mind.

	Enron North America Corp.

	From:  Mitch Robinson                           12/06/2000 02:57 PM

To: Kay Mann/Corp/Enron@Enron
cc: Don Miller/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT

Subject: Re: SWPC Transfer

Are we not saying the same thing?

Kay Mann
12/06/2000 12:13 PM
To: Mitch Robinson/Corp/Enron@Enron
cc: Don Miller/HOU/ECT@ECT, Stuart Zisman/HOU/ECT@ECT

Subject: Re: SWPC Transfer

2.  I believe SWPC further agreed that the assignment to the LLCs (and the
subsequent transfer of equity) will not affect the terms of the contracts,
including the warranties.

	Enron North America Corp.

	From:  Mitch Robinson                           12/05/2000 06:38 PM

To: Don Miller/HOU/ECT@ECT
cc: Stuart Zisman/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron

Subject: SWPC Transfer

Don -

Please forward on to Allegheny.

In order to facilitate the smooth transfer of the assets, to close out the
turbine purchase contracts, and to provide Allegheny with unused generation
capability at Gleason, we are entering into an agreement with Siemens
Westinghouse Power Corp ("SWPC") which will effect the Gleason and Wheatland
facilities in the following way.

1.  Increase the permissible power level at Gleason on each of the turbines
from 182mw to 185mw.  Specifically, SWPC will allow the three Gleason units
to each have a maximum operating capability of 185,000kw and will reset the
control curves accordingly.  SWPC further will agree that operation of the
Gleason units up to and including 185,000 kw is within normal operating
parameters and operation up to and including this level will not invalidate
the warranty.  SWPC has agreed to make this change within one week after we
give them authorization.

2.  SWPC agrees that the Gleason and Wheatland contracts and associated
warranties may be assigned to limited liability companies owned in whole or
in part by an Enron entity pursuant to the terms and conditions of the
Gleason and Wheatland contracts, and that SWPC's consent to such assignments
will not be unreasonably withheld.  SWPC will honor warranty claims currently
outstanding or asserted in the future by the contract assignee, assuming such
assignment is in accordance with the terms and conditions of the Gleason and
Wheatland contracts.

3.  SWPC agrees to assist Enron in providing technical information, including
redacted copies of the purchase contracts, applicable technical bulletins,
etc. to Allegheny.  This information will be limited to information which is
currently available to Enron and of a technical nature only.

I believe all of these features are significantly beneficial to Allegheny.
Please ask Allegheny for feedback, as we will be entering into the agreement
by the end of the week.

Regards,

Mitch Robinson


Sorry - 462105 is Transalta - my error.

And Mark's APB deal # is 461972.

Kerri Thompson@ENRON
11/17/2000 02:48 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: apb checkout

462105
broker has transalta

missing deal for mark

buy aquila
50 mw
100.00
dec
palo
on peak


Marie:

I also need a copy of the following:

ENA (formerly known as ECT) and RES (formerly known as Noram) have entered into that certain Enfolio Master Firm Purchase/Sale Agreement dated effective as of August 1, 1995 (as the same may have been or may be amended (including said Amendment dated January 1, 2000.

Deb:

Are we confirming any transactions under that agreement?

Leslie


Hi Matt,

Here's the InterGen deal (formerly the Coral deal, now with new
counterparty).  We plan to meet with them tomorrow to see if we can wrap up
the agreements.  Any comments?

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 12/20/2000 05:55
PM ---------------------------

"George Kutzschbach" <gkutzschbach@fulbright.com> on 12/20/2000 04:54:24 PM
To: Ben.F.Jacoby@enron.com, Kay.Mann@enron.com, CCampbell@KSLAW.com,
JKeffer@KSLAW.com
cc: DPedigo@INTERGEN.com

Subject: Sweetgum/ENA

I have not yet received all of InterGen's comments on the documents,
however, to expedite matters, I am passing on some additional comments
on the letter agreements and the form of Facility Agreement to be
attached to the letter agreements.

Letter Agreements:  Sections 3(a) and 3.(b) of all three letter
agreements should be revised as noted in the attached form of letter
agreement.

Facility Agreements:

1.  The second sentence of Section 17.4.1 of each of the Facility
Agreements should be amended to read as follows:

"If the Maximum Liability Amount (less any unpaid portion of the
Purchase Amount) is greater than the Proper Scope Value the difference
between such amount and the Proper Scope Value (the "Refund Amount")
shall be settled between the parties in accordance with Section 17.4.4
below."

This is the same comment I made earlier.

2.  Exhibits B-1 and H-2 are blank and the corresponding exhibits from
the master GE sales agreement should be attached to the Facility
Agreement.

3.  The cross-reference to Exhibit N-1 should be deleted from Exhibit I
as Exhibit N-1 was deleted from the Facility Agreement.

4.  Exhibit R is blank, however, it is unclear whether this Exhibit is
still relevant.

5.  Exhibit U appears to be incomplete and the reference back to
Section 10.8.4 is unclear.  I believe Tom Seigler brought this up point
up with Ben before Coral left the proposed transaction.

6.  The references throughout the Exhibits to "oF" should be corrected
to contain the degree symbol.


Start Date: 4/29/01; HourAhead hour: 13;  HourAhead schedule download failed.
Manual intervention required.


It is Friday again.  Bullets, Please - by mid morning.....

Thanks,
Kim.


My good buddy Scott set up contract .9047 in Sitara.  Please note:  do  not
schedule gas on this contract.  This contract was set up for accounting
purposes only.


Dear class,

1. Popular acclimation has requested that we move macro the exam to Thursday
12/16. If you are one of the 3 people who prefered Wednesday, please contact
me
and we will arrange an opportunity for you to take the exam Wednesday.
        BA201B Thursday, 12/16 6-9:30 in C210 & C220

For your information, the exam for BA202A will be Monday, 12/13 6-9:30 in C135
& C220,

Bhash and I have already ordered pizza and beer for the grading festivities on
Friday 12/17.  (Actually, cappucinno's, but I thought you'd appreciate the
imagery of cheerful--albeit inaccurate--graders more.)

2. Also, classmates have suggested a number of web sites, and links have been
added to the class site. Be sure to understand the environmental and labor
rights critiques of the WTO.  We do not have time to discuss them in class,
and
most business press presents largely the advantages of free trade.

See you soon,
- David

David I. Levine                 Associate professor
Haas School of Business    ph: 510/642-1697
University of California    fax: 510/643-1420
Berkeley CA  94720-1900                            email:
levine@haas.berkeley.edu
http://web.haas.berkeley.edu/www/levine/


I'm not sure what's going on with these options, but I entered them as 2 PM
expiry, then got a message that they were 2 AM from Stephanie Piwetz this
morning, changed them AGAIN, and now they're back to 2 AM. I've changed them
again, but I honestly have no idea why they keep going back. Please let me
know if you see the expiry as 2 PM now.

Thanks,
Kate

Evelyn Metoyer@ENRON
05/01/2001 12:02 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: option date - 597086

deal 597086
can you please ch the time to 2:00 p.m. not 2:00 a.m. for the exercise time.

Thanks


Without overselling this right now, (as I only received the information
through a source other than the utility),  It looks like EOG is going to make
some serious adjustments to their gas choice program.  Here is what I know so
far.  EOG is meeting with the marketers who are serving residential customers
behind their system  to try to get their support on their program ideas
before formally submitting it to the PUCO.  The following are the parameters
that I have received so far:
Voluntary Capacity Assignment
Local storage goes with the customer and is built into the base distribution
rates
Third party billing
If EOG does the single billing they will buy the receivables at 99%
Balancing and trueups will be monthly
Rollout process in June
Program would begin in September
Open the entire service territory
Rumor has it that this has been preshopped with Chairman Schrieber.  I will
be making a trip to Cleveland to discuss the details with East Ohio and will
meet with Rob Tongren (Ohio's Consumer Counsel) to get his insight on this as
well.   EOG is the second largest gas utility in Ohio and represents 1.2
million customers.


Democrats Prepare to Duel Bush Over Energy Price Caps in West
The Wall Street Journal, 06/01/01

Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
Los Angeles Times, 06/01/01

Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
The Wall Street Journal, 06/01/01

Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
The Wall Street Journal, 06/01/01

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL
Asia Pulse, 06/01/01

GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001

INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS
Asia Pulse, 06/01/01

Thomas E. White becomes Secretary of the Army
M2 Presswire, 06/01/01

Some light at last!
The Economic Times, 06/01/01

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
Associated Press Newswires, 06/01/01

California Lawmakers Eye Billing Businesses for Edison Rescue
Dow Jones Business News, 05/31/01

Construction of power plant in DeSoto County is underway
Associated Press Newswires, 05/31/01

Politics & Policy
Democrats Prepare to Duel Bush Over Energy Price Caps in West
By John Harwood and Jeanne Cummings
Staff Reporters of The Wall Street Journal

06/01/2001
The Wall Street Journal
A16
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -- If you talk to economists, many will say President Bush is on
solid ground in opposing caps on soaring electricity prices in California and
elsewhere. But if you talk to voters, many will suggest he has political
problems.
And now that Democrats control the U.S. Senate, they are poised to make those
problems a lot worse.
Mr. Bush got a taste of what is coming in his widely touted showdown with
California Gov. Gray Davis in Los Angeles this week. The Republican president
repeated his familiar argument that capping wholesale electricity prices
would do nothing to curb demand or increase the supply of power for
California. But the Democrats' Mr. Davis, fortified by polls showing that 70%
of Californians favor price caps, managed to get equal billing during Mr.
Bush's visit for his argument that they are needed to keep the state from
slipping into recession and threatening the national economy in the process.
Because Sen. Jim Jeffords of Vermont left the Republican Party last week and
changed control of the Senate, Democrats now have a more effective national
platform to press the same arguments -- and to threaten Mr. Bush's political
standing beyond the already hostile turf of California. The incoming chairman
of the Senate Energy and Natural Resources Committee, Democratic Sen. Jeff
Bingaman of New Mexico, says he plans to move soon on legislation capping
prices for California and other Western states, a bill that has attracted
some GOP support as well.
"I think it's clear to anybody that the prices being charged for wholesale
power are excessive," said Sen. Bingaman, in an interview while he was
heading toward California on a fact-finding mission. "I don't believe it's
going to be adequate to get us through this summer, to just continue saying
that eventually supply will come into line with demand and the problems will
be resolved."
Meantime, the incoming chairman of the Permanent Subcommittee on
Investigations, Democratic Sen. Carl Levin of Michigan, plans to investigate
the role of oil companies in higher gas prices. "This is the manipulation of
prices, and we've got to investigate it because our people in Michigan are
absolutely furious," Sen. Levin says. Just as Republicans once used the
machinery of Congress to probe then-President Clinton's problems, Democrats
see ripe opportunities for embarrassing an ex-oilman president with strong
links to Texas energy-producing companies that are profiting from today's
supply squeeze.
During the 2000 presidential campaign, five of the major companies now
supplying power to California -- Duke Energy Corp., Dynegy Inc., Enron Corp.,
Reliant Energy Inc., and Williams Cos. -- gave some $3.6 million to Mr. Bush
and the GOP, more than triple the amount donated to Democrats. Three of those
companies are based in Mr. Bush's home state of Texas, which only adds to the
political tensions.
The Democratic offensive has the GOP worried. Price caps amount to "terrible
policy, but good politics," frets Republican pollster Neil Newhouse. Mr. Bush
now faces "a difficult job" overcoming the Democratic arguments for caps, he
adds, because "control of the Senate has given them a megaphone on issues
that they just didn't have before."
That doesn't necessarily mean Mr. Bush ultimately will suffer grave damage.
As congressional Republicans learned to their chagrin in battles with Mr.
Clinton, the presidential bully pulpit remains the most potent weapon in
American politics for framing policy debates. Even with that advantage,
though, the Clinton administration found that the initial appeal of arguments
on issues such as tobacco regulation and prescription drugs faded under
sustained counterattack by Republicans and affected industries.
And so far, polls are showing that Mr. Davis also is paying a political price
in California for the crisis. Still, Mr. Davis, who faces re-election next
year and may later seek the 2004 Democratic presidential nomination, believes
he can limit the damage by emphasizing his efforts to expand supply and
spotlighting the actions of energy companies in Texas and elsewhere. On CNN's
"Larry King Live" this week, he complained that "money sucked out of this
state" amounts to "a massive transfer of wealth" from Californians to the
industry.
Whatever the political ramifications, they aren't limited to California.
Consumers in Washington, Idaho and Montana that are serviced by the same
electric grid have seen 30% increases in their utility rates. That is why Mr.
Davis, with support from some GOP governors in the West, is asking the
Federal Energy Regulatory Commission to impose short-term wholesale price
caps to help protect electricity consumers from soaring rates until new power
plants approved for construction in California increase supply enough to
bring prices down through market forces. California Democratic Sen. Dianne
Feinstein and Oregon Republican Sen. Gordon Smith are offering legislation to
accomplish that in the committee that Mr. Bingaman now will chair.
As a matter of policy, most economists probably would agree with Mr. Bush's
free-market position on price caps, though that sentiment is hardly
unanimous. As he met with the president this week, Mr. Davis released a
letter from 10 prominent economists backing price caps as a temporary remedy
for a market "not characterized by effective competition." One of the
signatories was Alfred Kahn, architect of airline deregulation under
President Carter.
But Bush economic advisers, heeding the free-market arguments that have held
the high ground in regulatory policy debates since the Reagan era, insist
that such caps would distort the energy market and be difficult to abandon
even when market conditions turn more favorable for consumers. "Price caps do
nothing to reduce demand, and they do nothing to increase supply," Mr. Bush
said in California this week.
Mr. Davis says the Federal Energy Regulatory Commission is obliged under law
to assure "just and reasonable" prices, and he says he will sue the agency to
force it to act despite the dismissal earlier this week of a similar lawsuit
filed by California's Democratic legislative leaders. Whether the governor's
effort succeeds, it could provide another forum in which supporters of price
caps can make their case. In discovery, for instance, California attorneys
may be able to get industry data on how much the wholesalers are paying to
produce electricity and their real costs of delivering it.
Such transactions are drawing attention because of the significantly higher
prices being charged in California compared with other states. This week, for
instance, the price of a million British Thermal Units of natural gas in the
San Juan Basin in New Mexico was $2.80, said one economist for the Senate
Energy Committee. But when that gas arrived at the Southern California
border, she said, the price was $10.20 per million BTUs.
Mr. Bush himself voiced concern about such differentials in his meeting with
Mr. Davis, and ordered the FERC to step up monitoring for price gouging. He
has designated Pat Wood, a recent FERC appointee who headed the Texas Public
Utilities Commission during his governorship, as the administration's lead
liaison to California.
Mr. Wood, in fact, could end up an increasingly important player as the
crisis in California and other Western states plays out this summer. Mr.
Wood, who supported some price caps in Texas, is considered more flexible on
the issue than is FERC's current chairman, free-market champion Curtis
Hebert. During his confirmation hearings, Mr. Wood said it may be too late
for price caps because the commission would need months to study materials
and determine an appropriate market rate.
If the administration continues resisting caps, Democrats vow to score
political points heading into the 2002 congressional elections. "Bush is the
individual who ginned this up into a crisis" by frequently calling attention
to the nation's energy problems, says Jim Jordan, executive director of the
Democratic Senatorial Campaign Committee. "Yet the administration won't
consider any serious short-term action to alleviate the problem for the
public."
--- Energy Problems?

Public views of President Bush and energy problems, nationally and
among Californians:

Nationally
Q: In general, do you approve or disapprove of the way President Bush
is handling his job as president?

Approve 52%
Disapprove 38%

Q: Based on what you have read or heard, do you favor or oppose
President Bush's plan to deal with the country's current energy
problems?

Poor job 49%
Good job 38%

Q: How do you think President Bush is handling energy?

Oppose 42%
Favor 38%
Unsure 20%

In California
Is it a good or bad thing for the federal government to cap energy
prices?

GOOD THING BAD THING NO OPINION

All adults 70% 24% 6%
Registered voters 68 26 6
Democrats 79 17 4
Republicans 57 37 6
Other 63 29 8

Sources: National poll numbers from CNN/Time poll; California numbers
from the Field Poll

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

California; Metro Desk
Electricity Trading Is Target of State Probe Regulation: A special Senate
panel is investigating alleged price manipulation of power transactions.
RICH CONNELL; ROBERT J. LOPEZ
TIMES STAFF WRITERS

06/01/2001
Los Angeles Times
Home Edition
B-1
Copyright 2001 / The Times Mirror Company

California officials are probing a vast private network of electricity
trading floors suspected of being a central culprit in California's spiraling
energy prices.
A special state Senate panel investigating alleged manipulation of the energy
market is zeroing in on hundreds of thousands of secretive transactions each
year that help determine whether California will have the power it needs--and
what it will have to pay to get it. Those activities also are central to a
lawsuit by the San Francisco city attorney, who has accused power companies
of using unfair business practices to reap huge profits from the state's
volatile and vulnerable energy market.
A single electron may be traded nearly a dozen times, often at escalating
prices, before reaching California. By then, the actual cost of producing the
electricity may have no relation to its price.
Unlike other commodity and stock exchanges, the frenzied daily activity on
the energy trading floors escape any independent oversight, which critics
contend makes the operations ripe for collusion and price-fixing.
"They're playing the California power game," said attorney Michael Aguirre, a
former federal prosecutor now suing power companies on behalf of Lt. Gov.
Cruz Bustamante. "The trading is the epicenter of the whole enchilada. They
trade and inflate the value."
Power company representatives say their trading floors operate legally and
ethically. "I don't think there has ever been the slightest shred of evidence
[of] something illicit or wrongdoing," said Gary Ackerman of the Western
Power Trading Forum, an industry trade group.
Ackerman and players in the market say prices are not always ratcheted up
through the trading. Often, they say, traders can match supply and demand to
help stabilize prices through daily transactions and long-term contracts.
Still, Aguirre and others say, these sophisticated trading operations have
outmaneuvered bureaucrats at Cal-ISO and the state Department of Water
Resources, the agencies responsible for buying billions of dollars worth of
power over the past several months.
The sprawling trading floors, scattered across the country, are marvels of
high technology. Amid banks of computers and huge wall screens that track
weather, electricity prices and demand across vast regions, mathematicians,
meteorologists and rows of gung-ho traders try to optimize profits buying and
selling one of the world's most volatile commodities.
"These are trading floors that are well outside any regulatory format," state
Sen. Joseph Dunn (D-Santa Ana) said Thursday. "What impact do these trading
floors have on the situation in California?"
Plant Operations Also Scrutinized
Although trading floors are an important focus of state authorities, the
probes of the power companies include an array of issues. Investigators are
digging into the operations of power plants to determine whether unnecessary
shutdowns have been used to tighten supplies and hike prices. Dunn, a onetime
consumer attorney, is heading the Senate investigation panel that is trying
to unravel these issues and the role of the trading floors, operated by the
nation's largest power marketers: Enron, Mirant, Duke Energy, Dynegy Inc.,
Williams Cos. and Reliant.
The committee is seeking records that could determine whether the power
companies have swapped information on trading tactics to maximize prices.
Among dozens of categories of documents Dunn's committee has requested--and
may ultimately subpoena--are computer records from trading floors, recordings
of communications between traders for different companies and training
manuals for traders.
"We know one product of that trading is it drives up the price. . . . What
are you trading for, other than to drive up the price?" Dunn said in a recent
interview.
His committee, which has yet to uncover any wrongdoing, is battling with the
power companies to obtain information the firms insist is confidential.
San Francisco City Atty. Louise H. Renne also is focusing on trading-floor
activity.
"That is a central concern of ours," said Owen Clements, Renne's chief of
special litigation. Clements suspects power traders may be "churning"
megawatts through repeated sales and boosting prices.
"If everyone passes it around and makes a profit, and the ratepayer and the
state of California are stuck with the bill . . . that certainly looks like
an unfair business practice," he said.
A spokesman for Houston-based Enron, which operates one of the busiest
trading operations, said critics misunderstand the energy market, where
profits are not necessarily tied to high prices.
"We're agnostic about the direction of prices," Mark Palmer said. "We make
money one way or the other." He said the trick is in having a diversified
portfolio--and offering unique risk services--to absorb the changing market.
Palmer said those implying misconduct on the trading floors are "100%
politically motivated. . . . These are folks who want to return California to
[power] regulation."
Still, some industry officials acknowledge that some additional oversight of
trading floors may be needed. Ackerman, of the power trading association,
said his members have asked federal regulators to consider an auditing
program to review trading activities.
"If people don't have confidence in trading floors," Ackerman said, "that's a
problem."
*
Times staff writer Miguel Bustillo contributed to this story.

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

World Stock Markets
Companies Rush to Purchase Their Indian Units, Boosting Share Prices of
Concerns With Foreign Ties
By Jesse Pesta
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
C11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Foreign companies are on a shopping spree in India's stock
market, buying up their own affiliates and hoping to take them private.
In recent weeks, companies ranging from Otis Elevator Co. and Carrier Corp.,
both of Farmington, Conn., to Hoganas AB of Sweden, a player in the global
iron-powder business, have made open offers for the shares of their Indian
units, sometimes at prices that suggest they consider themselves a bargain.
Boston chemicals maker Cabot Corp. offered 100 rupees ($2.13) a share for
Cabot India Ltd. at a time when it was trading around 55 rupees.
Royal Philips Holland has offered to buy the 17% of light-bulb maker Punjab
Anand Lamp Industries it doesn't already own, according to Punjab. Otis and
Carrier, which are units of United Technologies Corp., Hartford, Conn., have
offered to buy all shares outstanding of their Indian affiliates, Otis
Elevator Co. (India) Ltd. and Carrier Aircon Ltd. The price for Carrier
shares was a nearly 100% premium to the stock's price prior to the offer.
The buybacks have triggered a surge in the stocks of other companies with a
foreign pedigree. Companies including Rayban Sun Optics India Ltd. (a unit of
Bausch & Lomb Inc., Rochester, N.Y.) and Philips India Ltd. (a unit of Royal
Philips Holland) have seen share prices rise as much as 40% or more since the
mid-May offers for Otis and Carrier, which were two of the early ones in the
current wave.
Both Rayban and Philips India deny open offers are planned. In any case,
Philips already boosted ownership in its Philips India unit to 83% from 51%
late last year.
In contrast to the surging shares of multinationals since mid-May, the Bombay
Sensitive Index has risen only 1.56%. It closed yesterday at 3631.91, down
30.13.
The trend has several drivers. For one thing, Indian stocks remain battered
after a rash of big market scandals earlier this year. Meantime, taking a
company private means it no longer is required to share as much information
about its business either with the market or a local partner. "In tough times
it will safeguard your interest," says Jignesh Shah, strategist at Ask-RJ
Investment Management in Bombay.
But most significantly, India has slowly made it easier in recent years for
foreigners to invest. Indeed, the buyback trend contrasts with the feud
between Dabhol Power Co. and its customer, the Maharashtra State Electricity
Board, over unpaid electricity bills. Dabhol, which is 65%-owned by Houston's
Enron Corp., is India's largest foreign investment and an emblem of the
difficulties foreign companies have encountered through the years. But the
buyback trend "works against the story of negative foreign-investment
environment" in India, one analyst notes.
As a rule, the companies play down the importance of stock price. Hoganas's
buyback for instance reflects the company's global strategy, but reflects as
well on a liberalizing India: Everywhere else in the world Hoganas owns 100%
of its subsidiaries, even Japan and China, says Virendra Sud, managing
director. But India didn't allow full foreign ownership 15 years ago, when
the company came here, he says, or else "we would have done it then." It's
purely coincidental that the buyback comes just as the stock market "has sort
of hit rock bottom," he says.
Otis attributes its buyback partly to India's growing appetite for more
sophisticated elevators, which means transferring advanced designs here.
Technology transfer heightens the need for closer cooperation with the
parent, says Managing Director Ashok Malhotra. But the company's reason for
going public in the first place sheds light on the regulatory cycle playing
out today in India. In the 1970s, India went through a phase of requiring
foreign companies to be part locally owned, so Otis made the public offer
that it is trying to undo today. "You have to work under the rules of the
time," Mr. Malhotra says.
---
Yesterday's Market Activity
Nasdaq's losses overnight pressured markets throughout Asia as Tokyo blue
chips tumbled 1.7% and South Korea's benchmark index fell 2.6%. European
markets rebounded somewhat from the previous day's declines, though volume
was thin. Overall, the Dow Jones World Stock Index rose 0.10%, or 0.20, to
195.33. Excluding the U.S., the index fell 0.68%, or 0.96, to 141.08.
In TOKYO, the Nikkei Stock Average was down 1.7%, or 231.21 points, to
13262.14. Nomura Securities downgraded its ratings on Fujitsu, Toshiba and
NEC, causing a broad slump in technology shares. Fujitsu ended down 2.8% at
1,543 yen, NEC slumped 3.9% to 1,947 yen, and Toshiba fell 3.6% to 675 yen.
In HONG KONG, the Hang Seng Index ended down 1.8%, or 245.72 points, at
13174.41. China Mobile fell 2.8% or 1.1 Hong Kong dollars to close at
HK$37.80. Property concern Cheung Kong dropped 3.4% to HK$85 and Sun Hung Kai
finished down 2.4% at HK$72.75.
In LONDON, the FTSE 100 Index slipped 0.01%, or 0.8 points, to 5796.10.
Services company Rentokil Initial surged 12.9% to 215 pence after it said
sales from continuing businesses were up 7.1% and operating profit was up 9%
year on year. It also said it has bought back 120 million of its own shares
since March. Invensys closed 6% higher at 142 pence after posting results in
line with expectations. Retailer Boots ended 3.5% higher at 597 pence after
posting earnings results in line with expectations.
In PARIS, the CAC 40 Index closed up 0.2%, or 9.92 points, to 5454.19.
Alcatel closed up 2.4% to 29.95 euros following the release Wednesday of
weaker-than-expected results and the demise of merger talks with Lucent
Technologies. J.P. Morgan cut its earnings-per-share forecast for the
communications-equipment supplier. Deutsche Bank also expressed negative
sentiment about the company, saying an industry turnaround is unlikely before
the fourth quarter of 2001. Car maker Renault closed down 1.1% to 55.15
euros. Lehman Brothers cut its 2001 earnings forecast, citing exposure to
falling demand in U.S. and Europe.
--- MSCI Indexes

% FROM
May 30 May 29 12-00

U.S. ........... 1183.7 1201.5 -5.3
Britain ........ 1723.9 1744.4 -6.4
Canada ......... 1030.8 1049.4 -10.9
Japan .......... 828.4 844.2 +2.5
France ......... 1763.4 1794.3 -7.3
Germany ........ 755.2 767.4 -7.7
Hong Kong ...... 6844.0 6920.0 -11.0
Switzerland .... 939.5 946.6 -7.6
Australia ...... 700.3 702.9 +9.4
World Index .... 1120.6 1136.4 -8.2
EAFE MSCI-p .... 1325.6 1342.7 -11.2

As calculated by Morgan Stanley Capital International Perspective,
Geneva. Each index, calculated in local currencies, is based on the
close of 1969 equaling 100.

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

International
Exxon, Shell Poised to Win Saudi Deals --- They Appear Favored To Lead Key
Projects In Coveted Gas Sector
By Bhushan Bahree
Staff Reporter of The Wall Street Journal

06/01/2001
The Wall Street Journal
A11
(Copyright (c) 2001, Dow Jones & Company, Inc.)

PARIS -- Exxon Mobil Corp. and the Royal Dutch/Shell Group appear poised to
win coveted leadership roles this weekend in a historic reopening of Saudi
Arabia's energy industry.
People familiar with developments said that barring last-minute upsets,
Exxon, the world's largest publicly owned oil company, will be named operator
of the largest opening being offered by the Saudis, the South Ghawar
natural-gas project that will require investment of $15 billion and is named
after the world's largest oil field, in the country's eastern province. But,
they cautioned, because Shell has been competing hotly for South Ghawar,
nothing can be taken for granted until the Saudis officially name the winners
and sign memorandums of understanding on Sunday.
As of late last night, Shell, the second largest company, was expected to win
the second prize: leadership of the Shaybah gas project, which requires
investment of $5 billion and is named after a recently developed oil field in
the kingdom's remote Empty Quarter, a southeastern desert region. Saudi
Arabia already has named Exxon leader of the third and last gas project
opened to foreign investment, the Red Sea project that requires investment of
as much as $5 billion.
Saudi Arabia's energy industry was nationalized in the 1970s, but over the
past two years has been reopened to foreign investment, prompting a fierce
contest among the world's largest oil companies. The people familiar with
developments cautioned that until the choices have been endorsed by an
11-member ministerial committee headed by Saudi foreign minister Prince Saud
al-Faisal, and given the final nod by Saudi Crown Prince Abdullah, they
couldn't be considered final.
The people said the ministerial committee met late yesterday ahead of a
formal signing ceremony planned for Sunday in Jeddah, the Saudi city on the
Red Sea coast. Such is the importance of getting into Saudi Arabia that the
chief executives of the eight companies chosen to participate in the gas
projects are flying to Jeddah to sign the memorandums, a prelude to
negotiations about fiscal and other terms. Final agreements aren't expected
until year's end at the earliest.
Officials of Exxon, Shell and the Saudi government declined to comment on the
choices made by the kingdom, which has the world's largest crude reserves and
is fifth in the natural-gas reserves after Russia, Iran, Qatar and the United
Arab Emirates. A leadership role -- or operatorship in industry parlance --
brings the opportunity to set the pace of the project and create local
networks that can prove valuable for future projects.
The kingdom still isn't allowing foreign companies into its crude-oil
business, which is run by the state-owned Saudi Aramco, but foreign oil
companies hope they eventually will be allowed into that sector, too. Indeed,
Aramco is expected to participate in the gas projects opened to foreigners,
with voting rights that have yet to be determined. The projects are
wide-ranging and encompass a long chain from exploration and production of
natural gas, to its transportation and use to generate electricity and in
water desalination plants.
Last month, Saudi Arabia named eight foreign companies, from a list of 11, to
take part in three consortiums for these projects. Besides Exxon and Shell,
they are BP PLC, TotalFinaElf SA, Conoco Inc., Phillips Petroleum Corp.,
Occidental Petroleum Corp. and Enron Corp. The three companies that sought
but failed to get a place are Chevron Corp., ENI SpA, and Marathon Oil Canada
Inc.
Industry officials say the competition was some of the fiercest ever. Said a
senior industry executive: "Everybody is looking 10 years down the road, and
the place to be is in Saudi Arabia."

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

NEW PACKAGE TO RESOLVE DPC, INDIA'S MSEB SITUATION: OFFICIAL

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, Jun 1 Asia Pulse - A new package 'acceptable to all' is being
evolved to resolve the seven-month old wrangle between Enron promoted Dabhol
Power Company and the Maharashtra State Electricity Board (MSEB) over the
issue of cost of power and payment of bills, A V Gokak, the federal
government's representative in Maharashtra's negotiation committee said
today.
"Things are moving in the right direction and government is serious to
resolve the crisis," Gokak told PTI after a meeting with the Finance
Minister, Yashwant Sinha, here.
Gokak said none of the parties to the dispute are in favour of closure of the
$3 billion project.
Earlier, the Indian government had asked Central Electricity Authority (CEA)
to explore possibility of selling the DPC power to deficient states. But the
Power Minister, Suresh Prabhu, had ruled out possibility of National Thermal
Power Corporation (NTPC) lifting DPC power.
Prabhu had stated that the government would make all efforts to settle the
matter in consultation with the stake holders.
Asked if any time frame has been set to break the impasse, Gokak said "delay
is in nobody's interest, but there are no readymade solutions."
The negotiating committee, headed by Madhav Godbole, has held two rounds of
negotiations with the last round held earlier this week being termed
"positive" by both DPC and the MSEB.
Gokak is believed to have put forward alternative solutions in resolving the
crisis.
(PTI) MYB 01-06 2030

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

		GLOBAL INVESTING: Betting on better times for utilities
Financial Times; Jun 1, 2001
By JOHN DIZARD

		The share price of one large electron-pushing company is up nearly 70 per
cent this year, but could be in line for another pop to the upside.
		That may sound like a report from Mary Meeker, the formerly omniscient
internet stock guru, or like your broker's stock-of-the-week pitch.
		Well, neither will be making such a claim at the moment - their legal
departments have them on too tight a leash. And the stock I have in mind is
not a technology stock in the sense of a silicon basher or programmer farm.
It is Edison International, the California electric power holding company,
whose Southern California Edison utility has been very publicly hovering at
the edge of bankruptcy for several months.
		The day after President George W. Bush made his "You're on your own,
California" speech, Edison's share price dropped more than 5 per cent. And
while the year-to-date rise, from Dollars 6.25 to Dollars 10.50 this week,
has been impressive, share-holders have seen a 46 per cent loss year on year.
		So why should anyone be optimistic about the chances for the common
shareholders in the holding company? Essentially because the state
legislators are being terrified into coming up with a bail-out plan - not
exactly the plan of Gray Davis, the governor of California, but one that will
preserve some value for the holding company shareholders and give them a more
predictable future.
		By now every one knows that the California utilities were squeezed by fixed
retail rates and rising wholesale costs. Edison has said it has Dollars 3.5bn
in "undercollected" wholesale power purchase costs. The state of California
(and its taxpayers) stepped in to buy power when the utilities ran out of
borrowing capacity in January. PG&E, the other big investor-owned utility,
filed for Chapter 11 protection back in April. Edison held off from filing,
preferring to try to get a state government bail-out.
		Much is missing from the standard account. For example, consumer groups
believe there is a lot of padding in the "undercollect", and that the holding
company should cough up billions in assets paid for with dividends supplied
by the SCE subsidiary. Many of the California public believe that the
merchant generators such as Duke Energy and Enron should pay back overcharges
rather than get any back bills paid.
		And yet the legislative tide is turning in Edison's favour. Within the next
couple of weeks, I expect the Democrats - who control both the state Assembly
and Senate - to come up with a bail-out plan for Edison that has a good
chance of passing both houses and being signed into law by the governor. The
reason is the the distinction they have begun to make between ratepayers and
taxpayers.
		To a legislator, tax payments, as distinct from utility rates, are things
that run through their hands and go to favoured programmes. Taking over the
payment of electric wholesale costs did not look too scary back in January,
when Governor Davis said it would go on for a few weeks and be easily covered
with the cash on hand. Well, the state has paid out nearly Dollars 8bn and
its cash reserves will be under increasing pressure until a Dollars
12bn-Dollars 13bn bond issue can be floated some time after August 15. A
decline in tax receipts is putting even greater stress on the state
government's resources.
		So the legislators want to get as far out of the power business as they can,
as fast as they can. That means saving Southern California Edison from
Chapter 11.
		The deal being negotiated within the Democratic leadership looks something
like this. The state will make a large loan, call it Dollars 1bn, against the
security of Edison's transmission system, to be repaid either through a sale
of the system to the state or a deduction from the allowed return on the
towers and wires. The holding company will pay out about Dollars 400m to prop
up the subsidiary. The rest of the undercollect will be paid for by a
"dedicated rate component", or charge to ratepayers - mostly commercial,
industrial and large users - that cannot be revoked by the Public Utility
Commission. The generators can get 70 cents on the dollar for their back
bills right away, or they can litigate forever.
		There are a few details that lawyers will quibble over, such as the
constitutionality of retroactively raising rates. And some may ask if it is
not cheaper just to let Edison go into Chapter 11, because even with the plan
it will not be able to take the state's place as a wholesale buyer at any
time soon. But I would bet on its passing anyway. And that would be good news
for Edison International shareholders, since they will have held on to most
of the holding company's assets, and still have an ongoing business in the
subsidiary.
		Don't bet the rent money on it, but it looks closer to me than a comeback in
spending on semiconductors. Maybe the children's college money - if you lose
it, they should work harder anyway.
		Copyright: The Financial Times Limited

		INTERNATIONAL ECONOMY, MIDDLE EAST & AFRICA: Hopefuls await details of Saudi
gas deal Financial Times; Jun 1, 2001
By ROBIN ALLEN and MATTHEW JONES

		ExxonMobil and Royal Dutch/Shell are the favourites to lead two of Saudi
Arabia's multi-billion dollar upstream gas projects to be opened to foreign
companies, according to industry observers in the Middle East.
		A committee of Saudi ministers responsible for the developments was due to
meet late last night. The companies are expected to learn the size of their
stakes either late today or early tomorrow, an official close to the projects
said.
		Saudi Arabia, which has excluded foreign companies in upstream operations
since 1975, last month announced the selection of eight oil groups to
participate in three gas projects requiring initial investment of around
Dollars 25bn.
		Exxon has already been appointed leader of Core Venture 2, on the Red Sea
coast, which also includes Occidental Petroleum and Enron Corp of the US. The
partners in Core Venture 3, the Shaybah development in the south-eastern
quarter of the kingdom, are Shell, TotalFinaElf of France and Conoco of the
US.
		Analysts and industry experts in Riyadh and Abu Dhabi said Exxon was expected
to be named leader of South Ghawar, also known as Core Venture 1, with a 35
per cent stake. BP and Shell would each be awarded 25 per cent shares while
Phillips would receive 15 per cent.
		Exxon was expected to be given a 70 per cent share of Core Venture 2, with
the remainder split equally between Occidental and Enron. Shell was tipped to
lead Core Venture 3 with 40 per cent of the project, while Total and Conoco
were expected to win 30 per cent each.
		One analyst said there was an outside chance that BP would be awarded
leadership of Core Venture 1 for political reasons.
		A BP official last night said the group had had no indication of the
decision, but added: "Even if we are not selected we will still have a very
significant part in a huge project. The important thing is to be there."
		Additional reporting by Robin Allen in Dubai
		Copyright: The Financial Times Limited

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS

06/01/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, June 1 Asia Pulse - International ratings agency Fitch has changed
the Rating Outlook on India's sovereign ratings from Stable to Negative,
citing well-flagged concerns about fiscal policy, privatization and the
deterioration in the foreign investment climate.
Fitch currently rates the foreign and local currency obligations of India at
BB+ and BBB- respectively.
The negative rating outlook reflects the slow progress of the government in
implementing privatization and addressing the weaknesses in public finances.
The fiscal-monetary policy mix in India remains unfavorable, resulting in
relatively high real interest rates and crowding out of private sector
investment.
Until the authorities display a concerted willingness to address fiscal
imbalances, India will remain locked in a stop-go cycle of growth and the
sovereign could slip into a debt trap, Fitch said in a press statement.
The recent corruption scandal, involving the ruling Bhartiya Janata Party
(BJP)-led coalition government, threatens to exacerbate these trends and slow
economic reform.
India's general government fiscal deficit at over 9 per cent of GDP is among
the highest in the realm of rated sovereigns.
Persistently high fiscal deficits have led to a build-up of the general
government's debt burden, estimated to be over 60 per cent of GDP.
In addition, the government has guarantees outstanding amounting to 9 per
cent of GDP.
Fitch reiterates the point that such guarantees, issued to back mainly
infrastructure projects, are contingent liabilities of the government.
This has most recently been borne out in the case of Enron, where the US
power company has invoked a central government guarantee for payment arrears
accumulated by the Maharashtra State Electricity Board.
ASIA PULSE 01-06 1609

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

Thomas E. White becomes Secretary of the Army

06/01/2001
M2 Presswire
Copyright 2001 M2 Communications, Ltd. All Rights Reserved.

Thomas E. White became the 18th secretary of the Army today after being
nominated by President George W. Bush on May 1, 2001, and confirmed by the
Senate on May 24.
White expressed his gratitude to the president and the secretary of Defense
for their confidence and trust in him. During his confirmation hearing before
the Senate Armed Services Committee on May 10, White identified four
objectives he will pursue as secretary of the Army in support of the
president and the secretary of Defense: to invest in people, to assure
readiness, to transform the entire Army and to adopt sound business practices.
The secretary of the Army is the U.S. Army's senior civilian, responsible by
statute for all matters relating to Army manpower, personnel, reserve
affairs, installations, environmental issues, weapons systems and equipment
acquisition, communications and financial management. The secretary leads a
work force of some one million active duty, National Guard and Army Reserve
soldiers and 225,000 civilian employees. The department has an annual budget
of approximately 70 billion dollars.
Before his appointment as secretary of the Army, White was the vice chairman
of Enron Energy Services, the Enron corporation subsidiary responsible for
providing energy outsource solutions to commercial and industrial customers
throughout the United States.
White began his service to the nation in 1967, after graduating from the U.S.
Military Academy at West Point. His distinguished career as a commissioned
Army officer included two tours in Vietnam and service as commander, 1st
Squadron, 11th Armored Cavalry Regiment; commander, 11th Armored Cavalry
Regiment, V Corps; and executive assistant to the chairman, Joint Chiefs of
Staff. He retired from the Army in 1990 with the rank of brigadier general.
For additional information, see the Army web site at
http://www.dtic.mil/armylink or contact Army Public Affairs at (703)
697-7550.
((M2 Communications Ltd disclaims all liability for information provided
within M2 PressWIRE. Data prepared by named party/parties. Further
information on M2 PressWIRE can be obtained at http://www.presswire.net on
the world wide web. Inquiries to info@m2.com)).

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

Some light at last!

06/01/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

NEW Delhis intervention in the tussle between Enron and the Maharashtra
government is a welcome development. The government wants the Central
Electricity Authority to find out whether electricity generated by Dabhol
Power Company can be sold to states which need power badly if it cant be used
by Maharashtra.
This is a good idea India is seriously short of reliable, quality electricity
supply. Maharashtra claims that it doesnt need even the 740 MW now generated
by DPC at going rates. This creates further trouble: the lower Maharashtras
offtake, the higher the unit price of DPC power. Once other power hungry
states start buying up electricity from DPC, the price per kilowatt hour will
fall sharply.
The first step to getting DPC out of the hole that Enron, Maharashtra and
successive Indian governments have dug it into, is to allow the utility to
sell power to anyone who wants to purchase it at going rates. However, asking
central utilities like the fledgling Power Trading Corporation to evacuate
DPC power for sale outside Maharashtra wont solve the hassles of the sector
for all time.
The government should modify electricity laws to allow generating companies
to sell electricity to all users immediately. An ordinance passed by New
Delhi will do the trick power is a concurrent subject, with central
legislation overriding states.
But even if that happens, it is doubtful if there will be too many buyers for
Dabhol power at its present price about Rs 4 per unit with the plant running
at high capacities. If the price is to be brought down further, the deal with
MSEB will have to be renegotiated.
The Godbole Committee says that some financial restructuring, de-dollarising
of debt and equity, and so on can bring prices down by about 30 per cent from
DPCs minimum Rs 4 per unit rate today.
Otherwise, as the GC points out, it will be impossible for the project to be
viable at current tariffs. India desperately needs electricity to grow. For
the power sector to grow, reforms are necessary at every level
renegotiations, yes, but also changes in laws and the rules of the game.

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

Calif. investigations focus on whether out-of state wholesalers manipulated
energy prices
By MICHAEL LIEDTKE
AP Business Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - State energy regulators say they are close to finishing
probes into whether electricity wholesalers illegally aggravated the state's
power squeeze.
In one year, California's power crisis has raised customer rates by $5.7
billion and dumped a $13 billion bailout bill on taxpayers. State officials
hope to recover the money if they find evidence that out-of-state wholesalers
manipulated the market to illegally driving up prices.
The wholesalers say they are being turned into scapegoats for a 1996
deregulation law sculpted by California lawmakers and the state's two largest
utilities, Pacific Gas and Electric and Southern California Edison.
The utilities have reported a combined $8.2 billion in losses since June
2000.
Two legislative committees are investigating allegations that wholesalers
created artificial supply shortages that drove wholesale electricity prices
as high as $1,900 per megawatt hour. Before June 2000, wholesale prices for
energy sold under similar terms rarely climbed above $150 per megawatt hour.
At least five lawsuits, including one filed by San Francisco City Attorney
Louise Renne, seek damages from wholesalers on behalf of all Californians.
"I don't think these are going to be very hard cases to make," said Owen
Clements, chief special litigator for San Francisco. "Even if they didn't
break the letter of the law, they clearly have violated the spirit of the
law."
Attorney General Bill Lockyer is offering multimillion-dollar rewards to
power plant workers and energy traders who provide the state with inside
information about wholesaler's decisions.
"Everyone feels like they're being ripped off. There's a lot of emotional
belief that unfair things have been done, but we're still working through the
case," said Lockyer, a Democrat who voted for the deregulation law when he
served in the state Senate.
The state utilities commission is inspecting power plant documents that may
show whether some facilities shut down unnecessarily to diminish supply. The
commission and Lockyer are investigating whether the plants then increased
production to reap big profits.
Power wholesalers maintain that the plants, many of which are 30 to 40 years
old, shut down for legitimate equipment repairs and maintenance.
"No one in our industry cuts back on production so a competitor can make more
money. It just doesn't happen, at least not on planet Earth," said Gary
Ackerman, executive director of the Western Power Trading Forum, a trade
group.
The Federal Energy Regulatory Commission earlier this year alleged that
Tulsa, Okla.-based Williams profited from the closure of two Southern
California power plants owned by a business partner, Arlington, Va.-based AES
Corp.
Without admitting wrongdoing, Williams refunded $8 million to settle the
charges.
California's investigations are examining the conduct of Williams, as well as
several other prominent power wholesalers, including Houston-based Enron
Corp., Dynegy Inc., and Reliant Energy, Charlotte, N.C.-based Duke Energy and
Atlanta-based Mirant Corp.
Cohen said the utilities commission could file a civil lawsuit against the
wholesalers by the end of June. Lockyer expects to wrap up an investigation
in late July at the earliest.
---
On The Net:
California Public Utilities Commission: http://www.cpuc.ca.gov
California Attorney General: http://www.caag.state.ca.us
http://www.enron.com
http://www.reliant.com
http://www.dynegy.com
http://www.duke-energy.com
http://www.williams.com
http://www.mirant.com

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

California Lawmakers Eye Billing Businesses for Edison Rescue
By Jason Leopold

05/31/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Dow Jones Newswires
LOS ANGELES -- California lawmakers are mulling yet another set of ideas for
rescuing embattled Southern California Edison, and this time businesses would
be on the hook.
In an attempt to deflect charges of a bailout that have thus far stymied
efforts to restore the utility to solvency, legislators are now considering
ways to shift the burden of financing the rescue from residential ratepayers
to the state's largest businesses, aides to key state lawmakers said this
week.
The ideas being worked over by Senate President Pro Tem John Burton, Assembly
Speaker Robert Hertzberg and Assemblyman Fred Keeley have yet to take shape
as formal proposals. But an aide to Burton said some key lawmakers are so
"desperate" to keep Edison International (EIX) utility Southern California
Edison from following PG&E Corp. (PCG) unit Pacific Gas & Electric into
bankruptcy court that they are willing to consider anything that will takse
residential consumers out of the equation.
"The idea is that the large industrial customers are the ones who pushed for
deregulation in the first place, so they should be responsible for bailing
out Edison," the aide said. "We're looking to take the burden off of
residential ratepayers."
The premise of a plan discussed by lawmakers on a conference call Thursday is
to designate Southern California Edison's largest commercial ratepayers as
non-core customers. Those customers -- some 3,600 users of more than 500
kilowatt-hours a month -- would be responsible for financing the cost of
power the utility must purchase or have purchased for it in the wholesale
market. The non-core customers would also help the utility recoup most of its
$5.5 billion in unrecovered power costs through a surcharge on their bills.
Core residential customers would be protected from the wholesale power market
as the primary beneficiaries of the low-cost power the utilities generate
themselves or have locked up in long-term contracts.
Enron Pushing Access to Customers
Separately, Enron Corp. (ENE) has been lobbying lawmakers for several weeks
to win approval to sign power-supply contracts with Southern California
Edison's largest commercial customers, leaving the utility to serve just its
residential customers and small businesses, aides to Gov. Gray Davis, Messrs.
Burton and Hertzberg said.
An Enron executive confirmed that the company sent a four-page proposal to
Mr. Hertzberg proposing that Southern California Edison's large industrial
customers sign so-called direct-access contracts with Enron. Enron also has
recently made a presentation about direct access to some members of the
California Chamber of Commerce.
Under the proposal, heavy users would be required to contract directly with
companies like Enron for their power.
Direct access was a key part of the state's 1996 deregulation plan, but was
scrapped early this year when the state started buying wholesale power in
place of the utilities.
The core/non-core proposal is one of several being discussed by lawmakers as
alternatives to a memorandum of understanding Mr. Davis struck with Edison in
April. The MOU -- which doesn't vary much from an agreement in principle
reached in February -- has been called dead on arrival by some lawmakers, who
have been mulling various alternatives rather than moving the agreement
forward.
State Sen. Debra Bowen, a Redondo Beach Democrat and chairwoman of the Senate
energy committee, said there are so many "Plan B's" floating around the
Legislature that, "We're going to need to hire an apiculturist."
Steve Maviglio, a spokesman for the governor, said the Davis administration
is still dedicated to seeing legislation to enact the memorandum of
understanding move through the Legislature, but said separating the utility's
"core and non-core" customers would be at the forefront of new discussions.
It was too early to say whether the governor would support the plan, he said.
Dominic DiMare, a lobbyist with the California Chamber of Commerce, said the
chamber has told the Davis administration that shifting the burden of the
Southern California Edison bailout to businesses is "a very bad idea" that
could cost the state billions of dollars in economic activity.
"This [plan] would really screw businesses," Mr. DiMare said. "We just got
hit with a 50 to 90% rate increase. We're dangerously close to losing our
businesses to other states."
Write to Jason Leopold at jason.leopold@dowjones.com
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved

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

Construction of power plant in DeSoto County is underway
By TIMOTHY R. BROWN
Associated Press Writer

05/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

JACKSON, Miss. (AP) - A North Carolina-based independent electric power plant
developer and operator has started construction on a $490 million generating
facility in DeSoto County.
Cogentrix Energy Inc. will build the 800-megawatt power plant in Southaven on
40 acres next to existing TVA and Entergy electric substation facilities. The
plant is the largest economic development project in the history of the north
Mississippi county.
The second largest project is a $150 million power plant currently being
built by Duke Energy.
Both are expected to be operational in 2003.
The National Energy Production Corporation, a subsidiary of the Enron Corp.,
is serving as the engineering and construction contractor for the Congentrix
project.
"It is in construction as we speak," Jeff Freeman, Congentrix vice president
for corporate communications, said Thursday. "NEPCO is mobilized on site and
they are doing earth work. It will probably take them 24 to 27 months to get
the plant in commercial operation."
Freeman said the Charlotte, N.C., company found several reasons why building
a plant in Southaven, a fast-growing city located just south of Memphis,
Tenn., was a good investment.
"The first thing that we look for in any project is a basic need for the
commodity that we produce, which is electricity," Freeman said. "The area
served by the transmission systems, TVA and Entergy, at this location provide
access to areas that need electricity."
The plant will use natural gas as fuel and will include the latest in
environmental and combustion control technologies, Freeman said.
Cogentrix owns all or part of 27 facilities with a capacity to generate about
7,000 megawatts in 14 states.
Southaven Mayor Greg Davis said both plants will generate about $300,000 to
the city, in lieu of taxes, and about $1 million each to the county school
system.
Davis said the plants will not employ many workers so traffic in the area
will not increase. He also pointed to the positive impact of temporary jobs
during construction.
"Then, road and bridge tax that they will be paying is substantial also,"
Davis said. "So from a financial impact we will see a great return in the
investment."
---
On the Net:
Congentrix: http://www.congentrix.com
Duke Energy: http://www.duke-energy.com

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


Attached for your review and comment are a letter and a memo in reference to the post-employment limitations of John Ashman.  If the letter is to your satisfaction, please prepare for finalization on your letterhead and send to Mr. Loeb.  If the memo is acceptable, please initial and give it to Mr. Ashman.

Please provide me with a hard copy of both documents.

Thanks.

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

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

This message may contain confidential information that is protected by the attorney-client and/or work product privileges.