Oil companies say North Slope gas pipeline too pricey
Associated Press Newswires

USA: U.S. Cash LPG-Market gains on NYMEX crude strength.
Reuters English News Service

UK: Enron ups online metals transaction sizes.
Reuters English News Service

INDIA: State-run Indian firms don't want Enron's assets.
Reuters English News Service

Poland may have large gas surplus, expert says
BBC Monitoring

India: Godbole panel submits report
The Hindu

The Hindu-Editorial: Muddying a quagmire
The Hindu
India: Talks on to solve Enron tangle
The Hindu

Power rates in some areas expected
BusinessWorld (Philippines)

Oil companies say North Slope gas pipeline too pricey

09/27/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

ANCHORAGE (AP) - Oil companies looking into the feasibility of building a natural gas pipeline from Alaska's North Slope to the Lower 48 say the project is too pricey.
A preliminary analysis of the proposed project by Exxon Mobil, BP and Phillips Petroleum shows that the pipeline project would not provide them with what they want; a 15 percent return on their money.
The project works out to a 10 percent to 11 percent rate of return.
"We see this as a very high risk project," Robbie Schilhab of Exxon Mobil told Gov. Tony Knowles' natural gas development team meeting this week in Anchorage.
Schilhab and Phillips Petroleum's Joe Marushack presented their preliminary conclusions at a task force meeting.
Whether the pipeline runs north through the Arctic Ocean to Canada's Mackenzie River delta or south along the Alaska Highway through Canada to the Lower 48, the answer is the same: for now, the project looks too expensive for Alaska's oil companies to undertake.
For both the northern Arctic route and the southern Alaska Highway route, the costs would be huge: $15.1 billion for the offshore route and $17.2 billion for the highway route.
"I think this could be made attractive to a number of investors," said Ken Thompson, a former oil company executive who sits on the governors' natural gas team. Thompson said that tax incentives, a lower return on investment and a higher value for liquid natural gas from the pipe would make the project a worthwhile investment.
If the oil companies are not interested, natural gas transportation companies such as Williams, El Paso or Enron might be, Thompson said.
Exxon, Phillips and BP are still refining their analysis of the project. But the two executives made clear that they consider the project a long shot both for its high costs and high risks.
Schilhab said that opportunity remained to make the project an attractive investment by cutting construction costs. The companies also want to streamline the permitting process to avoid delays.
The presentation dented but did not destroy the optimism of the governor's gas council.
"I don't like seeing the number. But it's a lot different from saying no way, no how, we're shutting our doors and going home," said Pat Pourchot, state commissioner of natural resources. Pourchot said that the producers' position underlined the need for incentives like federal tax breaks similar to those being proposed by the Knowles administration.
Exxon, BP and Phillips are split on the incentives. To address the risk of low prices, Phillips wants a tax credit if prices fall below a certain level. BP and Exxon say they want a project that is viable without tax breaks.
Federal legislation is slated for consideration next week in Washington, D.C.

USA: U.S. Cash LPG-Market gains on NYMEX crude strength.

09/27/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Sept 27 (Reuters) - U.S. cash propane prices gained early Thursday, and boosted other liquefied petroleum gas (LPG) prices tracking an uptick in crude oil futures on the New York Mercantile Exchange (NYMEX), traders said.
Propane gained 1.75 cents to trade at 38.75 cents a gallon in Mont Belvieu, Texas and 1.00 cent to trade at 43.25 cents a gallon in Conway, Kansas, players said.
Midday, the NYMEX November crude oil contract traded 33 cents higher at $22.71 a barrel on short-covering and technical trade, after a seven-day slide that halted Wednesday.
November natural gas futures lost 2.80 cents to be bid at $2.25 per million British thermal units (mmBtu) after bearish inventory data was released on Wednesday.
Ethanes were steady, with no deals heard on mix in either hub, and purity trading steady at 23.75 cents a gallon in Belvieu.
Trade on the heavies remained thin.
Natural gasoline traded 2.00 cents higher in Belvieu with Enron barrels at 51.00 cents a gallon. Conway product talked at 63.00/67.00 cents a gallon, players said.
Normal butane traded at 47.00 cents a gallon in Belvieu and at 39.38 cents a gallon in Conway compared to no confirmed deals on Wednesday, dealers said.
Isobutane traded at 47.00 cents a gallon in Belvieu, while Conway product was offered 0.50 cent higher at 44.25 cents a gallon, traders said.
- ((Soo Youn, New York Energy Desk, 646-223-6057, soo.youn@reuters.com)).

UK: Enron ups online metals transaction sizes.

09/27/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Sept 27 (Reuters) - Commodities trader Enron has amended its internet trading platform EnronOnline (www.enrononline.com) to allow some users to increase the size of metals transactions.
For selected clients, Enron is now making markets in three months copper and aluminium for maximum 200-lot transactions, compared with the standard 20-lot markets on the system.
For the larger-volume deals Enron is quoting a wider $4 bid-ask spread rather than the standard $2 spread.
Joe Gold, president of Enron Metals, said, "The 200-lot market was developed because a number of people asked us to put something of a larger size on there."
He said the 200-lot market was open to a restricted number of users, but was not focused on any one particular section of the market.
"People who like large lots tend to be big producers, some of the funds, and so on. They're people who have a commercial relationship with us already," he said.
Traders said the increased transaction size could give Enron an added edge when competing for fund business.
"It's a big step up in liquidity. If I was them my first call would be to the top 10 fund managers to say 'why don't you stop messing around with phone calls and come to the screen where you can trade 200 lots at the click of a button?'" said one.
"Even if they don't manage to get these guys' business, they've raised the bar. Their other clients may have to conform to the Enron model, offering 200-lot deals and maybe a $3 spread if they want to beat Enron."
U.S.-based Enron Corp became a major player in the metals trade in May last year when it acquired MG plc, a leading independent international metals dealing firm in London which had previously absorbed fellow LME ring-dealers Rudolf Wolff & Co and Billiton Metals Ltd.
In July last year the company announced the first physical metals transaction on EnronOnline.
The system differs from the screen trading systems operated by the London Metal Exchange (LME) and UK-based metals and energy broker Spectron in that the trading platform is open to a broad range of users but Enron is the sole counter-party in each transaction.
Both the LME's LME Select and the Spectron trading platform enable trading between individual users, but limit membership to Category 1 (ring dealing) and Category 2 (associate broker clearing) members of the LME.

INDIA: State-run Indian firms don't want Enron's assets.

09/27/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW DELHI, Sept 27 (Reuters) - Leading state-run firms have rejected proposals from financial institutions to acquire assets of U.S. energy firm Enron's Dabhol Power Co, officials said on Thursday.
Enron wants to sell its 65-percent stake in Dabhol Power Co which is embroiled in a payments dispute with a local utility.
Officials said some financial institutions had suggested National Thermal Power Corporation (NTPC), Oil and Natural Gas Corp and Gas Authority of India Ltd could buy the troubled Dabhol Power Co's assets.
NTPC Chairman C.P. Jain told reporters the company had written to the federal government that it was not interested in the project. "We don't think it is a commercially viable proposition for the organisation."
Officials said financial institutions had also proposed that ONGC and GAIL could buy the LNG import and regasification facilities of the Dabhol plant south of Bombay.
ONGC Chairman Subir Raha said ONGC was not interested. "Right now it is not on our table. We are not considering it," he told reporters.
Dabhol's first phase has a generating capacity of 740 MW. It has been idling since May when Maharashtra State Electricity Board (MSEB), its only customer, stopped buying power saying it was too costly and that Enron had violated a part of the contract.
Dabhol's second phase was 97 percent complete when further construction was stopped because of the dispute.
The first phase used naphtha as fuel, but the second phase, that will have a generating capacity of 1,444 MW, will use LNG as fuel.

Poland may have large gas surplus, expert says

09/27/2001
BBC Monitoring
Source: PAP news agency, Warsaw, in English 1443 gmt 27 Sep 01/BBC Monitoring/(c) BBC
ext of report in English by Polish news agency PAP
Warsaw, 27 September: Even in the most optimistic prognoses for gas consumption in Poland, there will be a large gas surplus due to contracts signed, Jaroslaw Astramowicz from Enron Poland Sp. z o.o. said on Thursday [27 September]. Astramowicz made the comment while taking part in a panel on diversification of gas supplies at the "oil and gas" trade fairs. According to Poland's energy policy, demand for gas will reach 18bn cubic metres annually in 2005, 20bn in 2010, 25bn in 2015, and almost 30bn cubic metres in 2020.
Astramowicz describes as "unlikely" the policy assumption that the electrical energy sector will be using 3.1-3.5 billion cubic metres per year by 2005. "The sector's level of gas consumption in 2005 will be considerably lower than that quoted in the government's programme, which means that in that sector alone there will be a huge surplus," Astramowicz says. He says the surplus could come to 2-2.5bn cubic metres.
"There will definitely be too much gas, and that gas will come from long-term contracts. Poland will have big problems paying for contracted gas within existing and signed contracts," he said.
Enron Poland trades in electrical energy and natural gas.

India: Godbole panel submits report
Our Special Correspondent

09/27/2001
The Hindu
Fin. Times Info Ltd-Asia Africa Intel Wire. The Hindu Copyright (C) 2001 Kasturi & Sons Ltd. All Rights Res'd
MUMBAI, SEPT. 26. The Godbole Committee - appointed by Maharashtra to negotiate power tariff rates with Enron - has made sweeping recommendations with a view to bring down the rate to Rs. 2.25-2.40 per unit.
Since the Centre's counter-guarantee liability for the project is Rs. 2500 crores, New Delhi should raise the same amount by issuing bonds and lend it to the Maharashtra Government as an interest-free loan, the Committee has recommended.
The project should be exempted from paying custom duty on the import of the LNG and the machinery for handling the LNG and if Dabhol Power Corporation is not entitled to income tax concessions for 10 years, the facility should be extended to it. The Committee wants the shareholders to forgo 75 per cent value of their investment in the project and rescheduling of Dabhol's loans. Besides, efforts should be made to find an alternate investor to replace Enron.
Other recommendations include the separation of the fuel facility from the project, renegotiation of fuel supply and shipping and restructuring of the tariff.
The Maharashtra Chief Minister, Mr. Vilasrao Deshmukh, told reporters that the State Cabinet had taken note of the recommendations in its meeting today.
The Committee has stated that it was not necessary to negotiate with Enron since the power major had expressed a desire to quit the project. The Committee spoke to representatives of the electricity boards of Karnataka, Madhya Pradesh, Delhi, Rajasthan and Haryana to explore the possibility of selling the excess power to them, but found that these States could buy electricity to some extent if the tariff was brought down to Rs. 2.25-2.40. The power needs of these States is temporary.

The Hindu-Editorial: Muddying a quagmire

09/27/2001
The Hindu
Fin. Times Info Ltd-Asia Africa Intel Wire. The Hindu Copyright (C) 2001 Kasturi & Sons Ltd. All Rights Res'd

ANY FAINT HOPES about the murky Dabhol Power Project crisis being sorted out by the contracting parties - the Enron Corporation, the Maharashtra State Electricity Board (MSEB), the State Government and the Centre which provided the sovereign guarantee in favour of Dabhol Power Company - now appear to have been ruined by the Maharashtra Government's resort to "the theatre of the absurd".
The decision of the Vilasrao Deshmukh Government to have a judicial probe into the entire Enron deal abinitio is not a mere exercise in evasion of the responsibility of the State Government to strive for a process of renegotiation of the contract perceived to be loaded against the virtually bankrupt MSEB (which is unable to pay for power purchased from the Dabhol Plant-Phase I); what is involved is a brazen blackmailing strategy through which the State Government perhaps hopes to drive the Enron Corporation down to its knees to settle for an exit course at a substantial discount on its equity stake, estimated at $1.2 billion. The Centre is not blissfully unaware that its own obligation as a surety for the State Government is now seen as an empty promise with all its pervasive adverse image of the country as an undependable and vulnerable investment destination.
The reported remark of the Union Minister for Power, Mr. Suresh Prabhu, that the new twist to the Enron tangle is "unfortunate" but that it would not affect foreign investments in the future, in the power sector in India, is indeed adding insult to injury.
The script, as it is unfolding in the Enron muddle, can leave nobody in doubt that from the very beginning the contract has had a large element of political manipulation driving it. The allegation that the Enron Corporation was able to manoeuvre itself into a power purchase agreement which was decidedly exhorbitant in power tariff owing to the "padding" of capital cost and the denomination of tariffs in U.S. dollar terms (apart from the use of naptha as feedstock) is said to have been corroborated by the Madhav Godbole Renegotiation Committee set up by the State Government. Assuming that a whole chain of bureaucratic scrutiny from the Power Ministry at the Centre down to the MSEB, over a four-year period, did not unravel the odious features of the Enron contract, how does it exonerate the MSEB, the State Government and the Centre now, from non-compliance with the contract in its different stages?
Political muck-raking, which is what is now being sought to be substituted by the Vilasrao Deshmukh Government (with the tacit approval of the Congress High Command) for an honourable modusvivendi on the Enron imbroglio, can never pass muster so long as the arbitration clause in the Enron contract cannot be wished away. It would indeed be a reckless misadventure for the Vajpayee Government to let the Maharashtra Government renege on the power purchase agreement with the Dabhol company and simply watch the disintegration of India's first-ever and much-vaunted mega power plant put up on the basis of foreign investment. Given the deplorable inadequacies in the power infrastructure in the country even after ten years of liberalisation and the demonstrated incapacity to add even 5000 MW of power generation capacity a year, it would be utter folly to abandon the Dabhol project without its full capacity of around 2000 MW being leveraged for the industrial advancement of the country.
Reports indicate that the U.S.-based Enron Corporation has expressed a desire to quit from the Dabhol project. The Indian financial institutions which have a substantial exposure to the capital cost of the project cannot afford to wait in supplication for some miracle to happen for the Dabhol project to stay afloat. It is no less a challenge to them as to the Vajpayee Government to find a way out of the morass. Let the project be revived as an earnest of India's commitment to development rather than be rubbished as a monument of political corruption.

India: Talks on to solve Enron tangle
Our Special Correspondent

09/27/2001
The Hindu
Fin. Times Info Ltd-Asia Africa Intel Wire. The Hindu Copyright (C) 2001 Kasturi & Sons Ltd. All Rights Res'd
NEW DELHI, SEPT. 26. Some serious behind-the-scene negotiations are on at the level of the Central Government to resolve the Enron tangle involving the Maharashtra State Electricity Board (MSEB) and the Enron-promoted Dabhol Power Company (DPC). A team of secretaries from the Ministries of Finance, Power, Law and Petroleum with the occasional inclusion of the Chief Secretary of Maharashtra, has been meeting frequently to explore ways to salvage project and to safeguard India's image as a favoured investment destination.
The core group has had a series of meetings not only with the two parties but also with financial institutions and other interested parties who might consider taking over the power project. However, top sources in the Power Ministry declined to give any details at this juncture, saying it would jeopardise the negotiations.
The Ministry has, however, not taken kindly to the letter by the Enron Corporation chairman, Mr. Kenneth Lay, to the Prime Minister, Mr. Atal Behari Vajpayee, in which he has been critical of the Central and State Governments. "Writing letters will not resolve the problem. If that were the case, the Indian Government too has much to say on the issue, but it would only complicate matters," sources in the Power Ministry said here today.
The Centre was playing the role of a facilitator and would soon find a solution to the problem as soon as possible, the sources said.

Power rates in some areas expected
Evangeline L. Moises

09/27/2001
BusinessWorld (Philippines)
Fin. Times Info Ltd-Asia Africa Intel Wire. BusinessWorld Copyright (C) 2001 All Rights Res'd
Power rates are likely to go up in the coming months as state-owned National Power Corp. (Napocor) tries to recover some P273.21 million in costs.
In one of the last orders it issued before it was dissolved, the defunct Energy Regulatory Board (ERB) - now known as the Energy Regulatory Commission - allowed Napocor to recuperate about P1.333 billion in uncollected charges covered by Fuel and Purchased Power Cost Adjustments (FPPCA) from March 1996 to December 2000.
But at the same time, ERB ordered Napocor to refund customers in Luzon and Mindanao some P1.060 billion in overcharges during the same period. This leaves Napocor to collect the P273.21- million difference.
FPPCA is an automatic pricing mechanism that allows Napocor to recover through rate hikes all additional costs arising from changes in fuel costs and the purchase price of power under Napocor contracts with independent power producers (IPPs).
The ERB order allows Napocor to collect about P1.271 billion from customers connected to the Cebu-Negros- Panay grid.
A big part of this amount covers uncollected adjustments from Napocor's contract with Philippine National Oil Co.-Energy Development Corp. for the operation of Leyte-Cebu and Leyte-Luzon geothermal plants.
Napocor is also expected to collect some P4.87 million in fuel price adjustments from customers connected to the Bohol grid. Most of Napocor's power plants in the area use diesel and bunker oil.
Napocor also stands to collect about P57.15 million from customers connected to the Leyte-Samar grid, as the Leyte-Luzon geothermal plant went on stream last year.
On the other hand, Napocor is expected to reimburse some P22.34 million to customers in the Luzon grid, and P1.03 billion to customers in the Mindanao grid.
"During the period March 1996 to December 31, 2000, there were also discrepancies in the purchased power cost adjustment due to the inclusion of two IPP contracts, namely Enron Subic 1 and Marcopper, which have already expired and the inclusion in the computation of the cost of operation and maintenance of several of its leasehold management contracts," ERB said.
The board also directed Napocor to submit a proposal on how to implement the order before finally billing or reimbursing its customers.
A Napocor official, who requested anonymity, told BusinessWorld in an interview yesterday that the firm may implement a uniform adjustment on all grids to recover the remaining P273 million.
The alternative is to either refund or collect from specific grids, in which case the rate adjustments will be gradual, the official said. Customers in the Cebu-Negros-Panay grid will bear the biggest rate adjustments.
At the same time, Napocor admitted that it cannot do a one-time refund of the entire P1.03 billion to customers in Mindanao given its financial condition.


At some point very soon, we need to talk about how the whole range of
contacts that need to be made in D.C. will be made- Hillings does not know
about the deal as far as I know. Let's talk before the end of the week.
Thanks.
---------------------- Forwarded by Richard Shapiro/HOU/EES on 08/03/2000
07:22 AM ---------------------------

Dennis Vegas@ENRON_DEVELOPMENT
08/02/2000 07:54 PM
To: Daniel Castagnola/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Richard Shapiro@ENRON_DEVELOPMENT
Subject: Re: Key Contacts in IFIs and OPIC

Because this whole issue is important to of our projects -Gaza, Guatemala, I
wanted you to have an idea of the strategies being considered. Nothing is
definitive, they want to lay our the risks and approaches necessary to
protect all projects and relationships. If you have any thoughts concerning
the approach, let me know! I will keep you posted as things unfold.
---------------------- Forwarded by Dennis Vegas/ENRON_DEVELOPMENT on
08/02/2000 07:41 PM ---------------------------

Keith Miceli@ENRON
08/02/2000 05:26 PM
To: Steven J Kean@EES, Mark Palmer/Corp/Enron@ENRON, Karen.Denne@enron.com,
Dennis Vegas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Johan
Zaayman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Henry.Means@enron.com
cc:

Subject: Re: Key Contacts in IFIs and OPIC

FYI.  Keith
---------------------- Forwarded by Keith Miceli/Corp/Enron on 08/02/2000
06:24 PM ---------------------------
From: John Hardy@ENRON_DEVELOPMENT on 08/02/2000 05:01 PM
To: Keith Miceli/Corp/Enron@ENRON
cc: Bill Gathmann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Key Contacts in IFIs and OPIC

Keith
 Following on our conversation, let me propose a couple of guiding factors in
terms of a communications strategy for summer for Washington.  The overriding
consideration should be to give OPIC operating flexibility to work with us in
accomplishing our financing objectives without a lot of scrutiny from others
around Washington that might be interested in getting political benefit from
putting OPIC's political management on the hot seat.  We will be meeting with
OPIC shortly after the announcement to set out the reasons why nothing much
has changed. Our objective I think around Washington should be to quietly
inform our friends and other critical players so that no one is surprised by
learning of the shift and no one considers it to be a big deal.  So I would
propose that after meeting with OPIC we make the rounds and talk to our
contacts at State, DOE, Treasury, the Executive Directors at the World Bank
and the IDB, EXIM and the other agencies as well as the appropriate staffers
on the Hill that might have cause to comment on OPIC's decisions.  In each
case we should be laying out the arguments why this transaction makes sense
and why in the end nothing much has changed.  Hope this helps.  Thanks John

Keith Miceli@ENRON
08/02/2000 03:06 PM
To: John Hardy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Key Contacts in IFIs and OPIC

John:  I understand that you are in the know about Summer.  Therefore, could
I prevail on you to provide me with a list of the names and titles of those
from the aforementioned groups who we should consider sending a letter to
inform them of the transaction.  I assume it would be the U.S. Executive
Director, of World Bank and IDB, plus OPIC President.  You know better than
me, so I'll stand by.  Your input will be included in a workbook we are
developing for a major communications rollout plan--both internal and
external. Thanks, Keith


Thanks - that should work fine now that the restricted list policy and risk
management policy are consistent.

Cassandra.

 -----Original Message-----
From:  Lowry, Donna
Sent: Thursday, April 05, 2001 11:12 AM
To: Schultz, Cassandra
Cc: Valdez, Veronica
Subject: FW: Policy Compared to Lowry's Notification

Cassandra,
I incorporated your changes to the Restricted List. The second and third
paragraph after the actual list is the exact language that you suggested.
The rest of the language in the entire email relates to the Chinese Wall
Policy and the only additional changes that will be made by the legal group
is they feel it is appropriate.  Keep in mind that I am only referencing the
Risk Management Policy to a very brief extent, this is not meant to be a
summary of that policy.  This is a offshoot of the Chinese Wall Policy.  If
you have any questions, give me a call.  Thanks. Donna

 -----Original Message-----
From:  Valdez, Veronica
Sent: Thursday, April 05, 2001 10:57 AM
To: Lowry, Donna
Subject: Policy Compared to Lowry's Notification

Donna,

Hope all is well.  Cassandra compared your document to the policy and she
stated per the attached that she felt your notification should be updated per
the information below.  Let me know if you need any help.

Thanks,

Veronica

Compared policy to Lowry,s notification
(underlining is policy)

In addition to the above, you are reminded that pursuant to Enron Corp.'s
Risk Management Policy ("Policy"), no ENA/RAC/EGF employeeNo employee of any
Enron Business Unit may engage in the trading of any"Position"  ("Position"
means any  commodity, financial instrument, security, equity, financial asset
or liability that are authorized for trading in
the

PolicyPosition for the benefit of any party other than ENA/RAC/EGF, whether
for his/heran Enron Business Unit (whether for their own account or for the
account of any third party,party) where such Position relates to  (i)
anycommodity,  financial instrument, security,equity, financial asset or
liability which falls within such employee'semployee,s responsibility at
ENA/RAC/EGF or (ii) any energy commodity.an Enron Business Unit, or (ii) any
other commodity not covered by (i) included in any Commodity Group.

&Position8 shall mean, collectively, the risk components (including, but not
limited to, price risk, basis risk, index risk, credit risk and liquidity
risk) of all products (commodities, financial instruments, securities,
equities, financial assets or liabilities) which have been authorized for
trading in the Enron Corp. Risk Management Policy, any of the Enron Corp.
Policies or approved for trading through any amendments to this Policy.


----- Forwarded by Jeff Dasovich/NA/Enron on 11/16/2000 06:21 PM -----

	"Delaney Hunter" <dhunter@smithandkempton.com>
	11/16/2000 05:30 PM
	Please respond to dhunter

		 To: "Aaron Thomas (E-mail)" <athomas@newenergy.com>, "'Allan Lippincott'"
<alippin@mail.arco.com>, "Ann Cohn (E-mail)" <cohnap@sce.com>, "'Ann Watson'"
<anw@cpuc.ca.gov>, "Anna Ferrera (E-mail)" <Anna.Ferrera@SEN.CA.GOV>, "'Art
Carter'" <debinorton@aol.com>, "'assistant for John Fielder'"
<moravekj@sce.com>, "Audra Hartmann (E-mail)" <ath@cpuc.ca.gov>, "Barbara
Barkovich (E-mail)" <brbarkovich@earthlink.net>, "'Becky Kilbourne'"
<bakilbourne@calpx.com>, "Bill Booth (E-mail)" <wbooth@booth-law.com>, "'Bill
Dombrowski'" <cra@calretailers.com>, "Bill Keese (E-mail)"
<wkeese@energy.state.ca.us>, "Bill Zobel (E-mail)" <bzobel@mail.arco.com>,
"'Bob Foster'" <fosterrg@sce.com>, "'Bob Houston'" <houstgrp@pacbell.net>,
"Carolyn McIntyre (E-mail)" <cmcintyre@sempra.com>, "Carolyn Veal-Hunter
(E-mail)" <carolyn.veal-hunter@asm.ca.gov>, "Catherine Hackney (E-mail)"
<hacknece@sce.com>, "Charles Bacchi (E-mail)" <charles.bacchi@asm.ca.gov>,
"'Craig Brown'" <brownc@epenergy.com>, "Dan Carroll (E-mail)"
<dcarroll@dbsr.com>, "'Denice Cazalet'" <dcazalet@apx.com>, "Dennis Price
(E-mail)" <priced@epenergy.com>, "'Denny Samuel'" <dsam@chevron.com>,
"'Dominic DiMare'" <dominic.DiMare@calchamber.com>, "Dorothy Rothrock
(E-mail)" <drothrock@cmta.net>, "'Ed Yates'" <ed@clfp.com>, "Eloy Garcia
(E-mail)" <egarcia@ka-pow.com>, "Evelyn Elsesser (E-mail)" <eke@aelaw.com>,
"Gary Heath (E-mail)" <gheath@eob.ca.gov>, "'Gordon McDonald'"
<gordon.mcdonald@pacificorp.com>, "'Jack Flanigan'"
<jackflanigan@flaniganlaw.com>, "Jack Gualco (E-mail)"
<Jackson_Gualco@gualcogroup.com>, "'Jack Stewart'" <jstewart@cmta.net>,
"'James Boyd'" <jim@resources.ca.gov>, "Jan Smutny-Jones (E-mail)"
<smutny@iepa.com>, "Jeff Dasovich (E-mail)" <jdasovic@enron.com>, "'Jerry
Jordan'" <jordan@cmua.org>, "Jim Cassie (E-mail)" <jcassie@sempra.com>, "Jim
Groniger (E-mail)" <gronijn@texaco.com>, "Joe Lyons (E-mail)"
<joseph.lyons@asm.ca.gov>, "'Joe Ronan'" <joer@calpine.com>, "John Bridges
(E-mail)" <bridgesj@epenergy.com>, "'John Fielder'" <fieldejr@sce.com>, "John
Fistolera (E-mail)" <johnf@ncpa.com>, "'John Larrea (E-mail)'"
<jgl@cpuc.ca.gov>, "John Rozsa (E-mail)" <John.Rozsa@sen.ca.gov>, "John White
(E-mail)" <vjw@cleanpower.org>, "'Joseph Alamo'" <jalamo@enron.com>, "Julee
Malinowski-Ball (E-mail)" <jmball@ns.net>, "'Julia Wright'"
<jwright@smithandkempton.com>, "Karen Edson (E-mail)" <kedson@ns.net>, "Karen
Jarrell (E-mail)" <kjarrell@smurfit.com>, "Karen Koyano (E-mail)"
<kykoyano@calpx.com>, "'Karen Lindh'" <karen@klindh.com>, "Karen Mills
(E-mail)" <kmills@cfbf.com>, "'Kari Harteloo'" <klc@aelaw.com>, "Kassandra
Gough (E-mail)" <kgough@calpine.com>, "'Kathy Brandenburg'"
<katherinebrandenburg@flaniganlaw.com>, "Kay Grosulak (E-mail)"
<kgrosulak@sppc.com>, "Keith McCrea (E-mail)" <kmccrea@sablaw.com>, "Kevin
Lynch (E-mail)" <Kevin.Lynch@pacifiCorp.com>, "Kevin Smith (E-mail)"
<kevins@ncpa.com>, "Kip Lipper (E-mail)" <kip.lipper@sen.ca.gov>, "Lawrence
Lingbloom (E-mail)" <lawrence.lingbloom@sen.ca.gov>, "Lenny Goldberg
(E-mail)" <lga@mother.com>, "Louis Szablya (E-mail)" <szablyal@epenergy.com>,
"Marc Joseph (E-mail)" <mdjoseph@adamsbroadwell.com>, "Marwan Masri (E-mail)"
<mmasri@energy.state.ca.us>, "Mary McDonald (E-mail)" <memcdonald@calpx.com>,
"Michael Alcantar (E-mail)" <mpa@aelaw.com>, "Mike Florio (E-mail)"
<mflorio@turn.org>, "'Mike Kahl'" <mikahl@ka-pow.com>, "Mona Petrochko
(E-mail)" <mpetroch@enron.com>, "Pete Conaty (E-mail)" <pcaceo@pacbell.net>,
"'Phil Nails'" <phil.nails@asm.ca.gov>, "Phil Stohr (E-mail)"
<pstohr@dbsr.com>, "Ralph Cavanagh (E-mail)" <rcavanagh@nrdc.org>, "Randy
Chinn (E-mail)" <randy.chinn@sen.ca.gov>, "Ray Thompson (E-mail)"
<ray.thompson@sen.ca.gov>, "'Rick Counihan'"
<rick.counihan@greenmountain.com>, "Robert Berry (E-mail)" <berry@apx.com>,
"Robin Larson (E-mail)" <rlarson@caiso.com>, "Sheryl Carter (E-mail)"
<scarter@nrdc.org>, "Steve Pike (E-mail)" <pikes@epenergy.com>, "Steve Ponder
(E-mail)" <steve_ponder@fpl.com>, "Stu Wilson (E-mail)" <swilson@cmua.org>,
"'Sue Mara'" <smara@enron.com>, "Susan Reeder (E-mail)" <sreeder@sppc.com>,
"Terry Winter (E-mail)" <twinter@caiso.com>, "Thomas Dinkel (E-mail)"
<tdinkel@retx.com>, "Tim Schmelzer (E-mail)" <Tschmelz@energy.state.ca.us>,
"'Tommy Ross'" <rosst@sce.com>, "'Tony Braun'" <braun@cmua.org>, "Victoria
Schaefer (E-mail)" <schaefvl@sce.com>
		 cc: <CJW5@pge.com>
		 Subject: FW: PG&E's Testimony on Financial Issues Associated with TRA
Undercollection

Per the discussion at the Retreat, please see attached for information on
PG&E's financial situation.

Thanks to Chris Warner for providing this information.

Delaney

-----Original Message-----
From: Warner, Christopher (Law) [mailto:CJW5@pge.com]
Sent: Thursday, November 16, 2000 1:39 PM
To: 'dhunter@smithandkempton.com'
Cc: Kauss, Kent; Timmerman, Mark
Subject: PG&E's Testimony on Financial Issues Associated with TRA
Undercollection

 <<02_Response.doc>>  <<03_PTER_PhaseIII_Ch01_McManus.doc>>
<<05_PTER_PhaseIII_Ch02_Campbell.doc>>
<<07_PTER_PhaseIII_Ch03_Asselstine.doc>>
<<09_PTER_PhaseIII_Ch04_StandardPoors.doc>>
<<CPUC01-#83739-v1-A9901016_et_al_Minkin_Ruling_.doc>>

Delaney, attached fyi is the testimony PG&E submitted to the CPUC last week
on financial issues associated with our TRA undercollection and TURN's
petition for modification.  Also attached is a copy of yesterday's ruling of
the administrative law judge rejecting this testimony for consideration as
part of the evidentiary record of this phase of the proceeding. Needless to
say, we believe our testimony is informative and helpful and should be
considered as part of the overall policy debate on this vital issue.

Please feel free to pass this testimony along to others who might be
interested, and feel free to give me a call if you have any questions.

Chris Warner
PG&E Law Dept.
415-973-6695

 - 02_Response.doc
 - 03_PTER_PhaseIII_Ch01_McManus.doc
 - 05_PTER_PhaseIII_Ch02_Campbell.doc
 - 07_PTER_PhaseIII_Ch03_Asselstine.doc
 - 09_PTER_PhaseIII_Ch04_StandardPoors.doc
 - CPUC01-#83739-v1-A9901016_et_al_Minkin_Ruling_.doc


USA: US FERC probe finds no Calif. market abuse by utilities.
Reuters English News Service, 11/01/00

US FERC To Order Sweeping Changes For Calif Pwr Market
Dow Jones Energy Service, 11/01/00

U.S. to Decide Action on State Energy Crisis Utilities: Regulators today will
release plans for tackling electricity costs. Potential solutions include
price caps, moves to foster competition.
Los Angeles Times, 11/01/00

USA: US FERC probe finds no Calif. market abuse by utilities.

11/01/2000
Reuters English News Service
(C) Reuters Limited 2000.

WASHINGTON, Nov 1 (Reuters) - The Federal Energy Regulatory Commission on
Wednesday said in a report that California utilities were not necessarily to
blame for last summer's price rises, which led to an unravelling of the
state's move to deregulate retail power markets.
A FERC staff investigation, which was to be released in full later on
Wednesday, found California's market structure and rules "flawed," which
combined with tight supplies caused the price of electricity to rise to
record highs in both wholesale and retail markets.
FERC has proposed rule changes to fix the operations of the California
Independent System Operator (ISO) and Power Exchange (PX). The draft changes
would eliminate the need for Pacific Gas and Electric, San Diego Gas and
Electric and SoCal Edison from having to sell into or buy from the power
exchange.
Other highlights from the proposal include establihshing an independent,
non-stakeholder to oversee the ISO and PX; modifying the auction market; new
reporting requirements; and accelerating new siting of power generation
facilities and eliminating some environmental impediments to new plants.
If approved by the full commission at its Wednesday meeting, the changes
would become effective in 60 days. California regulators and industry
officials have until Nov. 22 to comment on FERC's proposed changes.

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

US FERC To Order Sweeping Changes For Calif Pwr Market

11/01/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- The U.S. Federal Energy Regulatory Commission
Wednesday proposed sweeping structural changes for California's
problem-plague power market.
The commission proposed the changes in response to a staff investigation
report, unveiled Wednesday, which found no "smoking gun" evidence that power
sellers in the state had manipulated market prices to financial benefit.
Instead, FERC blamed the state's mandated market structure for the
electricity supply shortages and spiking wholesale power prices passed on to
retail customers in San Diego.
At the same time, utilities elsewhere in the state hemorrhaged hundreds of
millions of dollars due to a state-mandated rate freeze that required them to
sell power at below cost.

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

Business; Financial Desk
U.S. to Decide Action on State Energy Crisis Utilities: Regulators today will
release plans for tackling electricity costs. Potential solutions include
price caps, moves to foster competition.
CHRIS KRAUL
TIMES STAFF WRITER

11/01/2000
Los Angeles Times
Home Edition
C-1
Copyright 2000 / The Times Mirror Company

The fate of California's rocky experiment in electricity deregulation hangs
in the balance today as federal regulators meet to decide whether to
intercede in the state's dysfunctional $23-billion energy market or to let
free-market forces continue to wreak havoc.
The four-member Federal Energy Regulatory Commission will release a
long-awaited staff report analyzing the root causes of California's energy
crisis and, more important, issue a draft order or action plan on how to
solve the problems of runaway wholesale electricity costs.
During public hearings in San Diego in September, FERC Chairman James J.
Hoecker promised that the commission would take action and "do whatever it
takes" to repair California's electricity market, whose deregulation was set
in motion by landmark state legislation in September 1996.
Just what the report and order will say remained a matter of intense
speculation on the eve of their release. The FERC commissioners could impose
new price caps or order an overhaul of the California Power Exchange and the
Independent System Operator, the state agencies that conduct daily auctions
for electricity. The commissioners may ask the state to undertake new
initiatives to foster more competition in a retail power market still
dominated by the three big investor-owned utilities.
But an indictment of power generation companies--which some in the state
accuse of "gaming," or manipulating the system to wield unfair "market power"
and wringing excessive profits from customers--is unlikely, according to
published reports and state industry principals and government officials.
The FERC commissioners are said to blame market deficiencies and defects in
California for a supply-demand imbalance that sent wholesale electricity
prices skyrocketing in July to an average of 12.9 cents a kilowatt-hour, more
than triple the July 1999 average of 3.9 cents. A typical residential
customer of San Diego Gas & Electric, the first state utility to fully
deregulate, saw his or her bills triple before state legislators stepped in
to cap retail rates in August.
Just as worrisome to many observers is that wholesale electricity rates
remain sky-high today, even after the end of peak summer power demand.
Wholesale rates in October averaged about 10 cents a kilowatt-hour, double
the average cost a year ago, said Patrick Dorinson, a spokesman for the
Independent System Operator.
In any case, billions of dollars of investments as well as the political
careers of prominent California politicians could be affected by what FERC
does. U.S. Energy Secretary Bill Richardson is coming out from Washington to
hold a news conference with Gov. Gray Davis in Sacramento this morning to
announce new, unspecified initiatives to address California's electricity
problems.
The Davis administration has gone on record demanding that FERC, which
oversees the transmission and wholesale selling of electricity around the
country, to step in and discharge its legal duty to restore "just and fair"
electricity rates in California. The ballooning of electricity rates in San
Diego during the summer created a political firestorm that raged unabated
until the state Legislature imposed its caps.
Rates paid by retail customers in the Southern California Edison and Pacific
Gas & Electric coverage areas are frozen as well for the time being. But $5
billion in "undercollections"--the difference between what the investor-owned
utilities have paid for wholesale electricity this year and what they can
charge consumers--looms overhead, worrying Wall Street.
"I have no idea what the FERC will say," said state Public Utilities
Commission President Loretta Lynch, a Davis appointee who says she is as much
in suspense as anyone. "But we are expecting a substantial order that would
move the ball forward on repairing the wholesale market in California."
Consumer advocates and the state's major utilities would like to see FERC
impose some sort of wholesale price controls--even gut the Power Exchange and
the Independent System Operator because they are clearly not working as
intended.
"We expect some radical surgery," said Doug Kline, spokesman for Sempra
Energy, the parent of San Diego Gas & Electric.
Some consumer groups would like to see FERC declare the wholesale rates
collected by generators "unjust and unreasonable," legal code words that
would open the gates to actions by the PUC or the Legislature to force the
power companies to disgorge or refund excessive profit. Such an action, which
would lead to litigation by the power companies, is considered unlikely.
Business interests, including the power generators that have reaped enormous
profit from the dysfunctional market, are arguing to let free-market forces
prevail because restrictive price caps would abort the market's evolution and
possibly stifle construction of new power plants, which offer the best
long-term solution to the state's predicament.
"We expect that the FERC will find that the high prices of this past summer
are a result of supply-and-demand imbalance and market design defects on the
retail and wholesale side, but that the market participants have been playing
within the rules and that there has been no manipulation or gaming," said
Brent Bailey, general counsel of Duke Energy North America of Houston, a
major generation player in the California market.
Duke and others also strenuously oppose a solution proposed by the state's
municipal utilities, notably the Los Angeles Department of Water and Power:
that the industry in essence be re-regulated by imposing a system of
cost-based rate controls, similar to how electricity rates were set before
deregulation.
Such a move would lead to lawsuits filed by Duke and other power merchants
alleging "confiscatory" actions by the state nullifying the value of hundreds
of millions of dollars they have invested in California power plants. Bailey
favors temporary price caps until the market regains its balance, as well as
new tweaking of the power market to stir up competition.
Los Angeles DWP General Manager S. David Freeman, who has led calls for
temporary imposition of cost-based rates, said California's failed
deregulation experiment raises the possibility that electricity is
intrinsically an "un-deregulatable" service.
"Three years ago, I thought it would work. Then we had a train wreck," he
said. "I'm not committing heresy when I say that I think it may not work out."

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


Charles Schwab & Co., Inc.
Email Alert

Internet Daily
for Friday, November 2, 2001
by Frank Barnako CBS MarketWatch.com

Dot-com layoffs rise

Plummeting air travel demand took its toll of Web travel sites
last month and helped cause a 60% rise in the number of Internet
job losses in October. Almost 5,000 positions were cut in the
industry, according to a report by Challenger, Gray and
Christmas. "Sites specializing in airline reservations and
travel planning experienced a substantial falloff in business,
which led to over 800 cuts," he said.

-----------------------------------------------------------------
Prodigy to sell Oracle Net device

Prodigy Communications  hopes to entice new customers by selling
a low-cost Internet access device and offering them three free
months of Web access service. An announcement of the offer will
be made within a few days, according to CNet. The $199 device,
known as NIC, was developed by Oracle Corp.'s  New Internet
Computer Co.

-----------------------------------------------------------------
Amazon.com, Citibank join for credit

Amazon.com  introduced the Amazon Credit Account, the online
equivalent of a department store credit card. The account is for
use on most of the company's Web site, but does not cover gift
certificates or purchases made through partner Circuit City.
"Amazon Credit customers can enjoy their purchase and hold on to
their money for 90 days before making a complete payment without
any interest," said Steve Frazier, vice president of hardlines
at Amazon.com. Citibank's  Commerce Solutions unit is making the
credit program available.

-----------------------------------------------------------------
Xbox, World Series, anthrax boost sites' traffic

Fox Sports' recently redesigned Web site has experienced a 17%
rise in visits, fueled by its TV network's coverage of the World
Series and the site's own intra-game public opinion polls.
Jupiter Media Metrix  also reported Major League Baseball's Web
site saw its traffic fall 40% last week. Drugstore.com welcomed
almost 1.1 million visitors during the period. That's a rise of
67% over the previous three weeks' average. And Xbox.com has had
a 54% riser in traffic (1.1 million visitors) as the Nov. 15
launch of Microsoft's  new game console nears.

-----------------------------------------------------------------
DC seeks kid-friendly Web zone

Members of the House of Representatives' telecommunications
subcommittee are pursuing the idea of creating a kid-friendly
area on the Internet. Sites designed for children could be
established at a domain such as www.website.kids.us, and would
bar pornography and other inappropriate material, Reuters
reported. A proposal has been introduced by Rep. John Shimkus,
R.-Ill.

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

For late-breaking market news you can't afford to miss, go to
http://CBS.MarketWatch.com/

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email system may be retained, monitored and/or reviewed
by Schwab personnel. (0801-11478)

Copyright 2001 CBS MarketWatch. All rights reserved.
Commercial use or redistribution in any form, printed or
electronic, is prohibited.

Distribution by Quris, Inc.


Dale:

I'm fine substituting the language referenced in the UK description you
attached below
so that this product description reads as follows:

A US Power financial Swap Transaction with Enron North America Corp., under
which the Seller
pays a Floating Price and the Buyer pays the price submitted by Counterparty
on the website
(the Fixed Price) in each case in respect of the Notional Quantity per
Determination Period.  Each
calendar month during the term of the Transaction or the term of the
Transaction if it is less than a calendar month
will be a Determination Period. The Determination Period shall be each
calendar month during the term of the Transaction; provided that, if the term
of the Transaction is
less than one calendar month the Determination Period shall be the term of
the Transaction.  The Notional
Quantity per Determination Period shall be the volume for the relevant
Determination Period
(calculated using the volume submitted by Counterparty via EnronOnline). The
Payment Date(s)
will be 5 business days Business Days after the Floating Price is
determinable.

Leslie

Dale Neuner on 02/29/2000 09:11:35 AM
To: Leslie Hansen/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
cc:
Subject: Re: US Power Fin Swap Description

I was pleased to learn recently trhat we have already contemplated this issue
in UK Gas. If there are no objections, I would like to adopt this and stay
consist in what we post to the website. Here's that description:

A Transaction under which one Party pays a Floating Amount and the other
Party pays a Fixed Amount in
respect of the Notional Quantity per Determination Period. The Determination
Period shall be each
calendar month during the term of the Transaction; provided that, if the term
of the Transaction is
less than one calendar month the Determination Period shall be the term of
the Transaction. The
Fixed Price shall be the price submitted by Counterparty via EnronOnline. The
Floating Price shall be Index.
The Notional Quantity shall be the volume for the relevant Determination
Period (calculated using the volume
submitted by Counterparty).  The Payment Date(s) shall be the fifth Business
Day following the date on which
the Floating Price is determinable.  The Transaction shall be arranged by
Enron Europe Finance & Trading
Limited on behalf of Enron Capital & Trade Resources International Corp.
("Enron").

Leslie Hansen
02/24/2000 01:02 PM
To: Dale Neuner/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
cc: Michael Etringer/HOU/ECT@ECT
Subject: US Power Fin Swap Description

Here's my proposed Description of the above-referenced product as discussed
with Mark:

A US Power financial Swap Transaction with Enron North America Corp., under
which the Seller
pays a Floating Price and the Buyer pays the price submitted by Counterparty
on the website
(the Fixed Price) in each case in respect of the Notional Quantity per
Determination Period.  Each
calendar month during the term of the Transaction or the term of the
Transaction if it is less than a calendar month
will be a Determination Period. The Notional
Quantity per Determination Period shall be the volume for the relevant
Determination Period
(calculated using the volume submitted by Counterparty via EnronOnline). The
Payment Date(s)
will be 5 business days Business Days after the Floating Price is
determinable. The Floating Price shall be the
average of the Index for each day in the relevant Determination Period.

I'd be happy to look over a full blown product example to make sure that the
Index descriptions work with these
products after you have built one.

Leslie


Jeff knows he has several deals off right now. He's fixing them as we e-mail.

Kerri Thompson@ENRON
11/16/2000 01:59 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: apb checkout

461027
jeff

broker has jan 01


still on for lunch today??


Leslie, would you please put these numbers together for us?  Valerie said she
would work with you on it.  Thanks.

01/08/2001 02:05 PM
Bernadette Hawkins@ENRON
Bernadette Hawkins@ENRON
Bernadette Hawkins@ENRON
01/08/2001 02:05 PM
01/08/2001 02:05 PM
To: Mary Hain/HOU/ECT@ECT, Lysa Akin/PDX/ECT@ECT
cc: Joe Hartsoe/Corp/Enron@ENRON
Subject: 2000 USFMP Dues Data Request (THIRD REQUEST)

Per my voice mail, see the attached.

Thanx
----- Forwarded by Bernadette Hawkins/Corp/Enron on 01/08/2001 05:02 PM -----

	Joe Hartsoe
	01/08/2001 04:28 PM

		 To: Bernadette Hawkins/Corp/Enron@ENRON
		 cc:
		 Subject: 2000 USFMP Dues Data Request (THIRD REQUEST)

B-dette -- Please call Mary Hain and find out who to forward this to.
Perhaps Alan?  ThanksJOE
----- Forwarded by Joe Hartsoe/Corp/Enron on 01/08/2001 03:26 PM -----

	sharon@wscc.com
	Sent by: Maiser@wscc.com
	12/29/2000 12:49 PM

		 To: "Council Representatives" <cr@wscc.com>
		 cc:
		 Subject: 2000 USFMP Dues Data Request (THIRD REQUEST)

SELECT COUNCIL REPRESENTATIVES

Please respond to the USFMP 2000 Dues Allocation Data Request that
was previously sent out on October 18, 2000, and on December 8, 2000.
This is a THIRD REQUEST. We would appreciate if you could forward
this information as soon as possible.

Thanks

Steve Ashbaker
WSCC
801-582-0353

MERRY CHRISTMAS & A HAPPY NEW YEAR!
Sharon Larson, WSCC
sharon@wscc.com
801-582-0353 X102

 - UFAS00Ltr.doc
 - UFASReportInstruc.doc
 - UFASMitigDataReq.xls


FYI (Elizabeth, in case we are beginning to populate a data base, here is a filing that should go in).

 -----Original Message-----
From: 	"Judith Borrego" <jborrego@swlaw.com>@ENRON [mailto:IMCEANOTES-+22Judith+20Borrego+22+20+3Cjborrego+40swlaw+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Thursday, August 23, 2001 5:19 PM
To:	llawner@enron.com
Subject:	Conformed Copy of Post-Hearing Brief

Attached please find a conformed copy of the Post-Hearing Brief of Enron  and Midwest.

Judith Y. Borrego
Snell & Wilmer L.L.P.
One Arizona  Center
Phoenix , Arizona 85004-2202
602.382.6122 (direct)
602.382.6000  (main number)
602.382.6070 (fax)jborrego@swlaw.com

The information contained in this electronic mail message is confidential  information intended only for the use of the individual or entity named above,  and may be privileged.  If the reader of this message is not the intended  recipient or the employee or agent responsible to deliver it to the intended  recipient, you are hereby notified that any dissemination, distribution or  copying of this communication is strictly prohibited.  If you have received  this communication in error, please immediately notify us by telephone  (602-382-6000), and delete the original message.  Thank you.

 - PostHrBriefEnrMid.doc


---------------------- Forwarded by Kayne Coulter/HOU/ECT on 02/13/2001 07:28
AM ---------------------------

	From:  Narsimha Misra @ ENRON                           02/11/2001 11:21 AM

To: Larry F Campbell/NA/Enron@Enron, Joe Stepenovitch/Corp/Enron@Enron, Tom
May/Corp/Enron@Enron, Robert Stalford/NA/Enron@Enron, Gautam
Gupta/HOU/ECT@ECT, Chad Starnes/Corp/Enron@Enron, Richard Hrabal/HOU/ECT@ect,
Kayne Coulter/HOU/ECT@ECT, Jeffrey Miller/NA/Enron@Enron
cc:
Subject: Alternate Location for NYISO Schedules

In case of problems accessing the NYISO website for submitting schedules and
such, try this alternative site for access... I have found this to be
available when the main site is down... I would try the main site first
though...
https://mtdev.nyiso.com
-narsimha


Presenters:  Pat Brennan and I attended the Virtual Power meeting this
morning representing Regulatory.  Drew and Dari were there from law.  Drew
led the presentation and covered the matrix/template that out study group
submitted earlier.

Audience:  Rockey Storie, Kevin Hyatt, Bob Burleson in Houston.  Kent Miller
and Tim Johanson in Omaha.

The material, presentation and discussion was well received and timely.
Rockey indicated that, in a recent status meeting with Danny McCarty, Danny
had asked if the commercial people were discussing their proposed deals with
Law and Regulatory.  Rockey responded that there had been contact and
discussion under way.

As for the discussion, the audience easily and quickly picked up on the
template format with most of the questions/comments focusing, as one might
expect, on revenue/COS bottom line issues.  Pat was able to provide
additional definition and comment to the group discussion and template
display.

Dari led us through the "jurisdictional" issues regarding electric and gas
service.  The abandonment of service concern that we expressed at the study
group meetings was more or less put to bed when Marketing responded that,
based on field operations input, turn-around time to stop a turbine, engage a
different operation (e.g., run a compressor) could be accomplished in 1 -2
hours.  "Gearbox" technology to shift operations is available.  We also
touched on the jurisdictionality issue associated with the purchase of a
compression service  - ala monetization.

Other concepts were brought up with regard to deal structure and financing
alternatives but were tabled for the moment.  There was also a question, to
be pursued, regarding air quality/permits using the engine to compress for
natural gas service vs running a generator.

I really feel that the meeting was successful and appreciated in that, at the
least, we were able to congeal much info on the matrix and facilitate what
could have been a very lengthy discussion into a relatively brief meeting.
Drew concluded by stating that the template should not be distributed outside
ETS.  He suggested that, on a case-by-case basis, our study group of Legal
and Regulatory personnel could quickly respond to case specific issues in a
customized response that the commercial dealmaker could provide to their
client(s).


Return-Path: <Sheridan.Titman@bus.utexas.edu>
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From: Sheridan Titman <Sheridan.Titman@bus.utexas.edu>
To: "'VKaminski@aol.com'" <VKaminski@aol.com>
Subject: broadband and pricing credit spreads
Date: Thu, 25 May 2000 16:41:39 -0500
MIME-Version: 1.0
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Content-Type: text/plain

Dear Vince:

I received the contract you faxed today.  I think the changes look ok, but
it needs to be approved by the university lawyers.  The following is a
letter I sent to Traci regarding our broadband conversation.  This was also
sent to your Enron email address but it bounced back.

regards,

Sheridan

Dear Traci:

Thank you for the information about Enron Broadband services.  I have
contacted Bob May, the Dean of the UT business school, the two Associate
Deans in charge of program development and
George Gau, my department chairman.  I will try to set up a meeting with
them next week to discuss our current distant learning initiatives and the
potential for collaborating with Enron.

Please let me know if you have any materials that I should show them at the
meeting.

I'll let you know what develops.  We view Enron as one of our most
important strategic partners and if we are considering offering courses
over the internet I'm sure that our Dean will want to discuss this with you
further.

regards,

Sheridan

Sheridan Titman
Department of Finance
College of Business Administration
University of Texas
Austin, Texas 78712-1179

512-232-2787 (phone)
512-471-5073 (fax)

titman@mail.utexas.edu

-----Original Message-----
From: VKaminski@aol.com [mailto:VKaminski@aol.com]
Sent: Monday, May 22, 2000 7:33 PM
To: Sheridan Titman
Cc: vkamins@enron.com
Subject: Names

Sheridan,

The names of the Enron employees on the telephone call:

Brad Nebergall   VP  713 853 4714   brad_nebergall@enron.net
Traci Warner      Dir  713 853 3242  traci_warner@enron.net

You know Stinson Gibner.

Vince


<<GE.LegalOpin.DOC>>  <<GE.Consent.DOC>>  <<GE.Receipt.DOC>>
<<GE.Ltr.Forms.DOC>>

Kay:

We have attached execution copies of the following documents for execution
by GE:

1.  GE Letter re Forms of Agreement;
2.  GE Consent and Agreement;
3.  Legal Opinion of Counsel to GE;
4.  GE Receipt.

These documents were circulated by Isabel Parker to Kent Shoemaker, you, me
and others on April 23, 2001.

The only other document is the GE Parent Guaranty.  Greg Lang circulated
comments (in a PDF file) by an e-mail 4/18 at 5:59 p.m.   Greg asked earlier
today whether the form of this document had been agreed by GE and I could
not respond.

You should have the following documents:

1.  Assignment and Assumption Agreement; and
2.  Turbine Contract.

Several of the ENA documents are not yet finalized, so I will try to get
those to you after lunch.  Please send over the LLC certificate book in
order that we may prepare membership certificates.

If you have any questions or comments, please advise.  Thanks.

Carolyn M. Campbell
King & Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

Enclosures

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

 - GE.LegalOpin.DOC
 - GE.Consent.DOC
 - GE.Receipt.DOC
 - GE.Ltr.Forms.DOC


Donna,

Please call Doug Imrie who has an up to date log of earlier replies I have
given to this and other Doorstep outstandings that you have directed to me
today.

Thanks and regards,
Tim

Donna Lowry
30/06/2000 07:01
Sent by: Michael Neves
To: Tim Poullain-Patterson/LON/ECT@ECT
cc: Richard Lauer/HOU/ECT@ECT, Donna Lowry/HOU/ECT@ECT, Sally
Beck/HOU/ECT@ECT, Rick L Carson/HOU/ECT@ECT, Ted Murphy/HOU/ECT@ECT, John
Sorrells/AA/Corp/Enron@ENRON

Subject: "Project DoorStep" TARGET DATE

The target date specified in an open audit observation has been reached.
Click on the document link below to view the observation / action step(s).
Please provide action step implementation detail along with completion date
and submit return response to Donna Lowry.  If you should have any questions
relating to this audit, please call the Observation Contact listed in the
following observation (document link).  Thank you.  NOTE:  EACH E-MAIL
REPRESENTS A SEPARATE AUDIT OBSERVATION.

Click on this link to view document -->


- 10_26_01GO.xls
 - 10_26_01OH.xls


Ken:

One of the initiatives implemented at Global Strategic Souring since its
formation in February is to leverage Enron's aggregated purchasing power to
facilitate commercial development opportunities for the Business (EBS, EES,
EFS, and etc.) Units.

Annually, Enron spends several million dollars with COMPAQ for servers, desk
top computers, and lap top computers.  COMPAQ has also been selected as one
of the potential candidates to service the EnHome program.  COMPAQ is also
one of EBS's alliance partners.

Given the magnitude of Enron's relationship with COMPAQ, we have formed an
intercompany team comprised of representatives from EBS, EES, EFS, Global
Strategic Sourcing, and the EnHome Program.  In our most recent meeting the
business units reported the following:

COMPAQ has failed to define its requirements for EBS services under the
current alliance agreement between the companies.  COMPAQ has also denied EBS
access to expertise and installations required for product refinement and
implementation.  (Based on the feedback I have received, I question whether
COMPAQ intends to honor the terms and conditions of its relationship with
EBS).
EFS only provides building services currently to a couple of Compaq's
installations.
EES has been in discussions with COMPAQ for several months now.  Although we
are progressing, it would appear that we are at an impasse on the language in
the contract necessary to support the transaction.
On the EnHome program, COMPAQ has generally been unresponsive to our
questions and concerns for clarification and/or additional information on
their experience in operating this type of program.
The Widows 2000 Roll-out Contract literally has taken months to complete when
it should have only been a matter of weeks.

Ken, based on what I am seeing day-to-day, I am concerned that COMPAQ has
lost sight of the value of our total business and the value of a healthy,
bidirectional relationship.

Therefore, specifically given the unresponsiveness to our most recent
requests for clarification on the EnHome Program and our concerns regarding
there ability to operate a program of this magnitude, I have requested that
we reopen discussions with IBM and DELL.

I will keep you apprised of future developments.

George Wasaff


462066
matt m
broker has off peak


Steve, we received a request from METI in Tokyo last Friday to arrange a
meeting in Houston for Mr Hirata from METI to discuss gas issues. The meeting
was largely driven by the travel schedule of Mr Hirata rather than a specific
need to meet with Enron. I query whether this is the same enquiry, via a
different channel, that you mentioned this morning. We asked Robert
Neustaedter to meet with Mr Hirata. The meeting took place today in Houston.

In any event, I attach a copy of a presentation given by Joe to METI last
month which reflects our current thinking on gas issues in Japan.

I will let you know what the outcome of the Houston meeting.

kind regards

---------------------- Forwarded by Nicholas O'Day/AP/Enron on 05/02/2001
04:38 PM ---------------------------

Robert Neustaedter@ENRON_DEVELOPMENT
04/27/2001 11:54 PM
To: Mark Crowther/AP/Enron@ENRON
cc: Nicholas O'Day/AP/Enron@Enron, Harry Kingerski/NA/Enron@Enron

Subject: Re: Visit by METI Director

Mark,

I would be happy to share Enron's US regulatory experience with Mr. Hirata.
May 2 would probably work better for me, if possible.  If you could advise on
issues specific to Mr. Hirata's interests, that would  allow me to gather any
information that may be of relevance and provide a more focused discussion.

Thanks
Robert

	Mark Crowther@ENRON
	04/27/2001 12:47 AM

		 To: robert.neustaedter@enron.com
		 cc: Nicholas O'Day/AP/Enron@Enron
		 Subject: Visit by METI Director

Robert,

I am writing to see whether you can help us out with a sudden request that we
have had from the Japanese Ministry of Economy, Trade and Industry (METI). A
Mr. Hirata, Director of Oil and Natural Gas Division, Resources and Fuel
Department in METI is in Houston early next week and would like to visit
Enron to talk about gas market and pipeline investment issues. He is not
responsible for gas deregulation but plays a role in the potential
development of a gas pipeline into northern Japan from Russia (the Sakhalin
line), bearing some relation therefore to E-Power's (Enron asset development
subsidiary in Japan) plans for a gas-fired power plant in the North.

Would it be possible for you to meet him informally for an hour on 1 or 2
May? We appreciated the amount of work that you put into the presentation for
our main METI gas contact Mr. Ueda last year. This time, we would not expect
a formal presentation from you, given the short notice and our limited
contact with Mr. Hirata. Also, Mr. Hirata appears happy just to discuss
issues informally.

For your information, I attach a presentation that Joe Hirl made at a recent
Government gas deregulation committee explaining Enron's views on
deregulation of the Japanese gas market. I'm sure you will recognize a number
of the slides.

Could you let me know of the possibility of this meeting? I will also try to
phone you later to answer any comments you may have. Thank you for your help.

Best regards
Mark Crowther
Manager, Public Affairs
Enron Japan


You may or may not be able to do anything about this but I've requested access to several different desk in Sitara and the people that approve these items all work for UBS.  Now I'm trying to pull up a deal that was on the central desk ( I thought) and its showing up as a west desk ticket and I can't access it.  I thought I was the one that entered it in Sitara.  Sitara deal #1198936 is an example.

Can you help get me access?

 -----Original Message-----
From: 	Germany, Chris
Sent:	Friday, March 01, 2002 2:48 PM
To:	Hall, Bob M.
Subject:	RE: Request Submitted: Access Request 000000000083213

I did submit a request via "e Request" - #83213.  I didn't know if you wanted to assign other people to do this and I don't know HOW you would do that either.  I just asked for everything to cover all the bases.

 -----Original Message-----
From: 	Hall, Bob M.
Sent:	Friday, March 01, 2002 2:44 PM
To:	Germany, Chris
Subject:	RE: Request Submitted: Access Request 000000000083213

You don't need UBS approval for access to estate files.

Did you submit a request for access.  I will approve.

You can not have access to AEP info however.

thanks

bob

 -----Original Message-----
From: 	Germany, Chris
Sent:	Friday, March 01, 2002 9:48 AM
To:	Hall, Bob M.
Subject:	FW: Request Submitted: Access Request 000000000083213

I hope I have the right Bob Hall.  I'm trying to get sitara access to the West and Texas Desk and they have not been approved yet.  I'm waiting for Phillip Love (now with UBS) to approve the West and O'Neal Winfree (not sure who this is) to approve the Texas Desk.

Tommy Yanowski was able to help with a couple of these but it looks like we need to get the approving parties changed.

I also left a message for the help desk about this.

 -----Original Message-----
From: 	Quezada, Daniel
Sent:	Wednesday, February 20, 2002 3:52 PM
To:	Germany, Chris
Subject:	FW: Request Submitted: Access Request 000000000083213

	You were not given access to AEP.

 -----Original Message-----
From: 	ARSystem <ARSystem@mailman.enron.com>@ENRON
Sent:	Wednesday, February 20, 2002 3:33 PM
To:	Quezada, Daniel
Subject:	Request Submitted: Access Request 000000000083213

This resource request has been rejected. You can view the details of the  request by clicking http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000083213&Page=MyReq.

Request ID          : 000000000083213
Approver Type       : Data
Signature           : tommy.j.yanowski@enron.com
Comments            : Chris should have access to Enron Estate portfolios only.  He should not need access to any AEP portfolios.
Request Create Date : 2/20/02 3:28:38 PM
Requested For       : chris.germany@enron.com
Resource Name       : Sitara Houston Production AEP Edit Trader
Resource Type       : Applications


El Paso said the Pecos River Station's #2 turbine will remain down longer than planned due to damage discovered during an ongoing overhaul. Capacity through Pecos River will be cut by 60 MMcf/d through Nov. 20.


Regina,

I need access to the Central Intramonth deal tickets (Trade Blotter and Deal
Manager) and Position Manager.

Thanks,

Andy


Sally -

I know where we need to go with this.

Primary focus is on the areas of the business managed by Beth and Evan.

I'll set something up to discuss

Thanks - Dan

From:	Sally Beck/ENRON@enronXgate on 10/29/2001 05:26 PM
To:	Dan Leff/HOU/EES@EES
cc:	Beth Apollo/ENRON@enronXgate
Subject:	FW: Roles and Responsibilities

Since you are the lead, I assume that you have an idea from Dave on what he is looking for.  Since Dave referenced ENW, I assume that we will include roles with regard to IT development projects.  Do you think that he also wants to pick up definition of Infrastructure roles as well?  --Sally

 -----Original Message-----
From: 	Delainey, David
Sent:	Monday, October  29, 2001 3:02 PM
To:	Sally Beck/HOU/ECT@ENRON; Beth Apollo/HOU/ECT@ENRON; Hughes, Evan; Leff, Dan
Subject:	Roles and Responsibilities

Guys, given our continued need to be crisp and clear on our work product and a clear view to increasing efficiencies, particularily in the back and mid office, I think it would be a good exercise to clearly map out roles and responsibilities between ENW and the EES Services Group in some amount of detail.  Dan will take the lead in this activity.  I would hope that we could have this mapped out fairly quickly without a great deal of internal time.

Thanks for all the hard work.

Regards
Delainey


Thanks.  He just stopped by my desk and discussed passing this on to someone else.

Mike

-----Original Message-----
From: Dronet, David
Sent: Monday, October 22, 2001 2:27 PM
To: Sulistio, Franky; Grigsby, Mike
Cc: Berutti, Aaron; Gaskill, Chris
Subject: RE: WestRateSheet

Mike,

	We'll look into having someone else work on this sheet as well as the deal data in Franky's absence.

Dave

-----Original Message-----
From: Sulistio, Franky
Sent: Monday, October 22, 2001 2:22 PM
To: Grigsby, Mike; Dronet, David
Cc: Berutti, Aaron; Gaskill, Chris
Subject: RE: WestRateSheet

Mike,
David Dronet is the best person who could delegate this project to someone else.  I'll ask him to help with the resource for this project.

Thanks,
Franky

-----Original Message-----
From: Grigsby, Mike
Sent: Monday, October 22, 2001 2:18 PM
To: Berutti, Aaron; Gaskill, Chris
Cc: Sulistio, Franky
Subject: RE: WestRateSheet

Franky,

Please delegate this project and any others to someone else.  Let me know who will be working on these projects while you are away.

Thanks,
Mike Grigsby
x37031
-----Original Message-----
From: Berutti, Aaron
Sent: Monday, October 22, 2001 2:02 PM
To: Grigsby, Mike
Subject: WestRateSheet

Mike,
Just wanted to keep you updated on the Rate Sheet project.  Franky sent me this email this morning.  Let me know if there is anything I can do for you in the meantime.

Aaron

-----Original Message-----
From: Sulistio, Franky
Sent: Monday, October 22, 2001 11:10 AM
To: Berutti, Aaron
Cc: Dronet, David
Subject: RE: WestRateSheet

Hi Aaron,
I may not be able to get to this WestRateSheet until Mid November because I may be taking 2 week family leave starting this wednesday to care for my son.

I apologize for the delay.

Regards,
Franky

-----Original Message-----
From: Berutti, Aaron
Sent: Wednesday, October 17, 2001 11:00 AM
To: Sulistio, Franky
Subject: WestRateSheet

 This is the excel sheet that is linked to EOL Listen or we would like to be linked to EOL Listen that hopefully we can make a web page out of so that it can be posted on the plasma screen.

Aaron
 WestRateSheet


PIRA will be in the office giving a presentation on Natural Gas Outlook.
 The meeting will take place Thursday, November 30th from 3:30 to 5:00 in
EB32C2.

Thanks,
Rain


Attached is the log as of 02/12/01.  If you have any comments please advise.

Regards,

Nancy


Scott--

Would you please include my name on all future e-mails.
I am the real time NY/NE trader.

LC


Encouraging preliminary results.

Mark
----- Forwarded by Mark Palmer/Corp/Enron on 04/09/2001 01:15 PM -----

	"Nicole Fink" <nicole@pos.org>
	04/09/2001 12:10 PM

		 To: mpalmer@enron.com, janel.Guerrero@enron.com, rschriefer@aol.com,
aameece@quinngillespie.com, bandrews@quinngillespie.com,
dlugar@quinngillespie.com
		 cc:
		 Subject: Opinion Elite Survey

A memo outlining our very early, prelmininary findings is attached.

The following section of this message contains a file attachment
prepared for transmission using the Internet MIME message format.
If you are using Pegasus Mail, or any another MIME-compliant system,
you should be able to save it or view it from within your mailer.
If you cannot, please ask your system administrator for assistance.

   ---- File information -----------
     File:  preliminarysummary.PDF
     Date:  9 Apr 2001, 13:08
     Size:  17337 bytes.
     Type:  Unknown

 - preliminarysummary.PDF


Please view the following events.  If interested, please contact Margaret Doucette at ext. 57892.

Thank you


Twanda, could you schedule some time for me to meet w/ Michelle on Wednesday, 10/23, to briefly discuss an Enron Freight Markets project?  I don't anticipate we would need more than 15 minutes.

I have a staff meeting schedule 9 a.m. to 10 a.m., and an afternoon meeting scheduled 2 p.m. to 3 p.m., but am otherwise free -- thanks, Bob

Robert E. Bruce
Senior Counsel
Enron Wholesale Services
T (713) 345-7780
F (713) 646-6058


Get ready.  Beginning in November, electronic pay stubs will be available to all employees who have their paychecks direct deposited into their bank account.  Electronic pay stubs are an easy, fast, and efficient way for you to get your payroll information.  They will also help Enron to realize a considerable savings in time and dollars spent over traditional printed pay stubs.

If you prefer to receive a hardcopy of your pay stub, click on the link below to complete a request form.  This form must be submitted to Payroll by October 15, 2001.  Unless you submit a form your pay stub information will default to electronic viewing.

Please click on the link below.

Name:             SANDRA BRAWNER
Personnel number: P00502701
Phone:            7138534854

If you have questions about electronic pay stubs, please contact Janice Priddy (Payroll) 713-853-7839 or Marie Newhouse (ClickAtHome) at 713-345-4185 or send an email to  Enron.Payroll@enron.com (Enron Payroll in Outlook).

Stay tuned for more details in the coming weeks.

http://etcsurvey.corp.enron.com/wi/p0810709/i.asp?r=19690&s=OUULGRTU&l=9


The following documents detailing MCC and MG Ltd middle offices have been
posted in S\Mg\Administration\Meeting Reports\

MCC London MOBO Description-28th June.doc
MGL London MOBO Description-28th June.doc


Do you want me to talk to him for you?  If so, do I need to tell him that you have experience with anything specific?
-----Original Message-----
From: Lenhart, Matthew [mailto:Matthew.Lenhart@enron.com ]
Sent: Tuesday, November 20, 2001 2:29 PM
To: Jilallen
Subject:
i think that i need to give my resume to your brother in law.  enron is
collapsing.
**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you.
**********************************************************************
- This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law.  - If you are not the intended recipient, you should delete this message and are hereby notified that any disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited.


Below is a summary of SCE's Rate Stabilization Plan.  In addition, PG&E filed
a plan on 11/22.  The major components of the plan are:

1.  Rate freeze ended 8/21/00.  New rates go into place 1/1/01.
2.  Rates for wholesale costs would be capped 6.5 cents/kWh for 5 years.
This would allow PG&E to amortize its undercollection under the 6.5 cent
cap.
3.  PG&E proposes that the undercollection is recovered from all customers,
including DA.
4.  Rate stabilization would apply to all except E-19, E-20 and E-25, who
will have an opt-in ability.

I also wanted to let everyone know that I will be moving from doing energy
issues to broadband issues.  Jeff Dasovich and Marcie Milner will be the GA
contacts prospectively on energy issues in Ca.

It has been my pleasure to have worked with all of you over the past several
months.  All the best.

Mona
---------------------- Forwarded by Mona L Petrochko/NA/Enron on 11/29/2000
08:53 PM ---------------------------

bchen@newenergy.com (Bill Chen) on 11/20/2000 07:41:59 PM
To: arm@phaser.com
cc:

Subject: Summary - SCE's Rate Stabilization Plan

All,

Here's a brief summary of SCE's Rate Stabilization Plan (RSP) Application
filed on Nov. 16, 2000.

SCE makes the following requests:

1.  CPUC determination that SCE's statutory rate freeze ended no later
than August 31, 2000 based on the CPUC's interpretation, in Decision No.
99-10-057, of AB 1890 that the "end of the rate freeze will be determined
to have occurred on the date a zero balance in the TCBA first occurred."
SCE claims its TCBA balance reached zero no later than August 31, 2000;

2.  Effective January 1, 2001 through June 30, 2001, an interim 9.9% rate
increase on top of the current frozen rate.  The rate increase would be
subject to refund to allow any generator refunds ordered by FERC to be
passed on to customers, if SCE is recovering its TRA undercollection after
the end of the transition period.  The new generation charge would be
called the "Procurement Recovery Charge" (PRC) and SCE's procurement costs
would be recorded in a new balancing account, the "Energy Cost Balancing
Account" (ECBA);

3.  CPUC to bifurcate SCE's RSP app into two phases:  In Phase I, CPUC to
issue a decision on December 21, 2000 relative to the interim rate
increase; and in Phase II, CPUC to hold evidentiary hearings to determine
a final adopted rate increase effective July 1, 2001 through December 31,
2002, and issues related to SCE's ongoing role in the post-transition
period such as 1) its role as default provider of energy, 2) its role in
providing energy if it isn't the default provider, 3) any limitation on
its procurement practices if it retains responsibility for procuring
energy for bundled customers, 4) the manner in which its procurement costs
would be passed through to customers, 5) reasonableness reviews of its
procurement practices, 6) establishment of reasonable customer obligations
consistent with its obligation to procure long-term power on customers'
behalf, 7) its role in providing revenue cycle services and the matter in
which such costs would be recovered, 8) resolution of its divestiture
applications and 9) its ownership of future generation, peaking or
baseload.  At the conclusion of the evidentiary hearings, if the CPUC
adopts a lower rate increase, SCE would refund, with interest, the
difference between the interim rate increase and the final, adopted rate
increase;

4.  RSP to include a trigger mechanism allowing for rate increases and/or
decreases beginning January 1, 2003 which SCE claims is necessary to
address its uncertainty relative to future procurement costs.  Beginning
January 1, 2003, if the undercollected balance in the ECBA exceeds $1
billion, SCE will file an advice letter increasing total rate levels by
2.5 percent and adjusting the PRC accordingly.  This process will be
repeated every six months until the undercollected balance drops below $1
billion.  However, in the event that the undercollection ever becomes
greater than $2 billion, SCE reserves the right to modify the percentage
increase to achieve a three-year amortization of the balance.  Conversely,
if the ECBA balance becomes overcollected by $200 million or more, SCE
will file an advice letter reducing total rate levels by 2.5 percent and
adjusting the PRC accordingly.  This process will also be repeated every
six months until the overcollection is less than $200 million;

5.  Since SCE claims that the rate freeze has ended, it also requests that
the TRA be eliminated, effective January 1, 2001, and that the "Deferred
Energy Cost Balancing Account" (DECBA) be established in its place.  SCE
requests that the TRA balance (as of Sept. 30, 2000, SCE maintains that
the undercollection balance is $2.4 billion) be transferred to the DECBA
and that the balance be amortized over a five-year period; and

6.  That the PRC will be applied to all customers, including Direct Access
customers, since "Direct Access customers have received larger PX Credits
that resulted from the high energy costs that created the undercollection
in the TRA."

Bill Chen
925.287.4703

 - RSP App, 11-6-00.pdf
 - RSP TEST.pdf
 - SERVICE.PDF


FYI:

Effective today, the schedulers for HPL have relocated from the 42nd floor to
the 30th floor.  This team reports to my direct report, Brenda Herod, who is
the Business Controller for the Asset Group and Texas trading region.  They
are on the west side of the building, just outside my office.  While room for
this scheduling team was not available on the 31st floor, this move was made
to improve communications with the Texas desk traders.  By being within the
same elevator bank, we can now employ "squawk" boxes between the traders and
this scheduling team.  As we look at space usage on the 32nd floor, this team
should be included in space requirements.  We are working with Liz Taylor on
those requirements.


Ken and Jeff,

As I think you both know I have been active in recruiting at Cornell for the
Enron Associate program for several years now.  I also recently have become
involved with something called the Park Leadership Fellowship Board which
provides scholarships and forums to discuss business leadership issues.  They
are holding a pretty prominent event called Leadership week which will
include the business heads of Corning and American Express discussing their
company's strategies for defining leadership in business today.  I hate to
ask you guys to do things like this but it is a pretty big event and would
really highlight Enron's recognition of Cornell as being a "Core School" in
the MBA recruiting process.  The event as outlined below is scheduled for
March 28th.  I appreciate your consideration.

Kevin

----- Forwarded by Kevin Hannon/Enron Communications on 11/29/00 08:38 AM
-----

	ras22@cornell.edu
	11/29/00 06:19 AM

		 To: Kevin Hannon/Enron Communications@Enron Communications
		 cc:
		 Subject:

Kevin-

Just a quick follow-up on my November 2 email regarding Enron's
participation in the Johnson School's March Leadership Week and the
possibility of doing a case study on Enron.  Wondered if you have had a
chance to float these ideas with Jeff or Ken?  I know you have lots on
you plate.  Let me know if you have any sense of how this might go.
Below is the earlier email I sent to you.  Thanks for the help.  Hope all
is well with you.

            Nov.2 email text

We at Cornell's Johnson School would like to establish a stronger link
with Enron, a company which we believe to be a leading example of the
agile organization which will dominate in the dynamic, unpredictable
markets of the next decade.  One connecting point which we would like
Enron to consider is with our Center for Leadership in Dynamic
Organizations which draws faculty and students from across Cornell and
beyond.

The specific activities that we propose at this point in time are two.
First, we would like to invite a senior leader from Enron to be a key
speaker at the Johnson School's Leadership Week in March, 2001.  As
described in the attached materials, Leadership Week is made up of three
conferences focused on academic faculty, leading-edge corporations and
students.  We very much would like Enron to present what we call a "live
case study" at the corporate conference on <underline>March 28,
2001</underline>.

You, of course, are an obvious candidate to do this.  Alternatively, this
is the kind of event that is made to order for Jeff Skilling or Ken Lay
and would give them a chance to interact with other corporate leaders and
the Cornell community.  Other corporate leaders we have signed up for the
corporate conference are John Loose, President and COO of Corning, Ken
Chenault, incoming CEO of American Express, Marty Coyne, just announced
President of Kodak's new Commercial Group.  Each of these leaders has a
distinct message to deliver about the leadership challenges involved in
continually reinventing themselves in a fast-changing marketplace.

We have several other speakers lined up for other parts of Leadership
Week, including Ken Blanchard and, we think, Abbey Cohen from Goldman
Sachs.  We have some chance of getting Bill Ford from Ford Motor Company
and an outside shot at Jack Welch through our President Emeritus Frank
Rhodes, but these are still long shots.

The point is that this is the biggest thing that will happen at the
Johnson School and probably at Cornell next year.  If Jeff or Ken wanted
a platform for telling the Enron story, this would be a good one.  If
they can't do it, hopefully we could convince you to do it.  Again, the
date is March 28, 2001.

The second proposal is to develop a teaching case on Enron along the same
lines.  In fact, if we started working on the teaching case soon, it
could become the basis for the March conference live case study
presentation.  We believe that Enron is unique in its ability to
literally create new markets.  The question is how do you lead and manage
an organization to keep the tight financial and risk controls in place
that you do, but still create the entrepreneurial behavior that seems to
be the case at Enron.  What kind of management philosophies, systems and
practices make this possible.

I know that Enron was the subject of two Harvard cases in 1993 and around
1997.  As I understand it neither focused on organizational and
leadership issues.  We would like to devote a small research team to
building this case about Enron, directed by myself and Professor Lee Dyer
from the ILR School.  We would need access to a number of people in the
Enron organization, but are very aware of the demands on time for fast
moving organizations and are committed to doing this in a very efficient
way.

Kevin, we appreciate your willingness to entertain these two ideas and
hopefully test them with your top leaders.  We will do anything we can to
make it feasible for Enron to engage with us on these two initiatives.
Please let me know what I can do to help you carry this forward.  As
always, thanks for your great personal support.

Dick


REMINDER ABOUT MEETING THIS AFTERNOON

Training on the use of Metastock as well as presentation of any new functions.


fyi -- messages re California
----- Forwarded by Steven J Kean/NA/Enron on 02/01/2001 03:04 PM -----

	Peggy Mahoney@EES
	02/01/2001 04:58 AM

		 To: Paula Rieker/Corp/Enron@ENRON, Mark Koenig/Corp/Enron@ENRON, Elizabeth
Ivers/NA/Enron@Enron, Mark Palmer/Corp/Enron@ENRON, Steven J
Kean/NA/Enron@Enron, Karen Denne/Corp/Enron@ENRON
		 cc:
		 Subject: California

Attached is the "pitch" our sales representatives are presenting to customers
in California, a list of customers and a Q&A.

Karen - I am also faxing to your house in case these files are too large for
you
to download at home before you leave for California.

Please call me with any questions.
713-667-8511
713-504-4338
713=345-7034

Peggy


Q2 earnings report looks very good!  Congratulations.  I will keep it quiet
until you are sure of the numbers. We should let Causey and Hayslett know for
planning purposes ASAP.

Given the recent events related to the proposed sale do you think it is even
worth discussing the Benefits issue with Corporate?

Also, have we finalized all of the divestiture/retention deals?

Have a good week.  Thanks.


Super. Jestesmy umowieni.

Juliusz

Vince J Kaminski
12/14/2000 11:06 AM
To: Julius Zajda/LON/ECT@ECT
cc:

Subject: Re: Lunch

Juliusz,

Wtorek jest najlepszym dniem.

Vince

Julius Zajda
12/14/2000 10:18 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Lunch

Przepraszam, ze sie tak dlugo nie odzywalem, ale musialem znalezc sobie
mieszkanie, przeprowadzic sie i kupic jakies meble. Czy lunch w przyszlym
tygodniu odpowiadalby Panu? Mi pasuje kazdy dzien oprocz czwartku.

Juliusz