Here's what happened.
---------------------- Forwarded by Darron C Giron/HOU/ECT on 10/30/2000
10:11 AM ---------------------------

	Enron North America Corp.

	From:  Kam Keiser                           10/30/2000 08:53 AM

To: William Kelly/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT, Darron C
Giron/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT
cc: Victor Guggenheim/HOU/ECT@ECT, Jackson Logan/HOU/ECT@ECT, Phillip M
Love/HOU/ECT@ECT, Souad Mahmassani/Corp/Enron@ENRON, B Scott
Palmer/HOU/ECT@ECT
Subject:

I spoke with Bill K. about the TDS positions problems we had this morning.
They had to take TDS down this weekend and when it was brought back up all
the positions were reloaded.

He thinks the new TDS portcalc will be ready to go later this week which will
prevent this from happening again.

Kam


Notice No. 01-15
January 19, 2001

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

FROM: George Henderson, Vice President

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

The expiration date for the February 2001 options contract for Cinergy
(NOG1), Entergy (OTG1), Palo Verde (VOG1) and Cob (WOG1) is Thursday, January
25, 2001.

GENERAL OPERATIONAL PROCEDURES

All Clearing Members and Qualified Floor Traders that carried an options
position as of the close of business day prior to the expiration day, or
engaged in trading activity on Expiration Day in the expiring options
contract will be required to have a knowledgeable, duly authorized
representative present at their normal work station promptly at 5:30 p.m.
until released by the Exchange staff as specified below.  All adjustments
and/or corrections, must be accompanied by relevant supporting documentation
prior to being incorporated into expiration processing, in essence making the
expiration processing an extension of the afternoon trade resolution
procedures.  All input to the NYMEX Clearing Department will conclude no
later than 30 minutes after floor representatives are released.

Exchange Clearing (299-2110), Floor Trade Correction (299-2068 and 299-2169)
personnel, as well as a representative of the Floor Committee will be
available to assist with the processing of notices of Exercise and
Abandonment, position transfers, trade corrections and other questions or
problems you may have.

CLEARING DEPARTMENT OPERATIONAL PROCEDURES

The Option Expiration process is a screen based process for which all
information is provided on the screens on C21 terminals. No Option Expiration
Reports will be provided. The following screens will assist you through the
Option Expiration process:

MEMBER TRADE INQUIRY
Contains real-time top day trade information, trade information for the
previous 4 business days and trades adjusted for the previous 4 business days
by adjustment date.

SINGLE POSITION MAINTENANCE
Contains a real-time snapshot for each option series from the start of day
position to the projected end of day position.

REVIEW ACCEPT REJECT TRANSFERS
Contains all trade and position transfers "TO" your firm and the status of
each transfer.

REVIEW SUBMITTED TRANSFERS
Contains all trade and position transfer "FROM" your firm and the status of
each transfer.

EXERCISE NOTICE SUBMISSION
Contains your available long position and an input field to enter the number
of long positions you wish to exercise.

DO NOT EXERCISE SUBMISSION
Contains your available long position and an input field to enter the number
of long positions you wish to abandon.

POSITION CHANGE SUBMISSION
PCS may be submitted either by manual input or by electronic transmission.
Any PCS input on a Clearing 21 terminal will be the input processed by the
system.  This input may be made at any time prior to 6:45 p.m.  Any PCS input
via transmission for that contract series will be disregarded.

ALL POSITIONS ARE DEEMED FINAL
Upon completion of all PCS input, all positions will be deemed final.

EXERCISE/ASSIGNMENT INFORMATION
Will be available to you on the Single Position Maintenance window by
contract series or the Assignment List window which contains all your
Assignments on one window. You will be notified of its availability by C21
E-Mail and by Fast Facts. This should occur within 1 hour of the last PCS
input.

All Clearing Members are required to have an authorized representative(s) at
their C21 workstations in preparation for any communication during the
expiration process.

FAST FACTS
Clearing Members should call the Fast Facts information service 301-4871,
access code 700 for event messages advising Members of the event status.

E-MAIL
Clearing Members should read their C21 E-Mail messages immediately to be
aware of event status.

The standard event Fast Facts and/or E-Mail messages and the sequence in
which they will be announced are:

Standard Event Message: Announce Out-of-the Money Exercise and In-the-Money
Do Not Exercise Submissions
Approximate Time of Message Availability: 5:45 PM
Usual Event Time: 5:45 PM
Announced via Fast Facts

Standard Event Message: Announce Final Input to C21 Cutoff Time
Approximate Time of Message Availability: 6:30 PM
Usual Event Time: 6:45 PM
Announced via e-mail

Standard Event Message: All positions are deemed final
Approximate Time of Message Availability: 7:30 PM
Usual Event Time: 6:45 PM
Announced via Fast Facts

Standard Event Message: Announce Exercise/Assignment Information Available on
the Single Position Maintenance Windows
Approximate Time of Message Availability: 8:25 PM
Usual Event Time: 8:30 PM
Announced via Fast Facts and e-mail

Standard Event Message: All Report Distribution is completed
Approximate Time of Message Availability: 11:00 PM
Usual Event Time: 11:00 PM
Announced via Fast Facts

The times appearing in the Usual Event Time column are based on normal
operational conditions and could vary.

NYMEX EXPIRATION DAY PROCESSING OVERVIEW OF MEMBER REQUIREMENTS

Time: 5:30 PM
Activity: Exercise Notice Submission
Event: Input to C21 Cutoff Time
Reference Number: 1

Time: 5:30 PM
Activity: Do Not Exercise Submission
Event: Input to C21 Cutoff Time
Reference Number: 2

Time: 5:45 PM
Activity: Announce Out-of-the-Money Exercise and In-the-Money Do Not Exercise
Submissions
Event: Fast Facts Notice
Reference Number: 3

Time: 6:30 PM
Activity: Announce Final Input to C21 Cutoff Time
Event: C21 E-mail
Reference Number: 4

Time: 6:45 PM
Activity: Final Input to C21 Cutoff Time
Reference Number: 5

Time: 7:30 PM
Activity: All Positions are Deemed Final
Event: Fast Facts Notice
Reference Number: 6

Time: 8:25 PM
Activity: Announce Exercise/Assignment Information Available on the Single
Position Maintenance Windows
Event: Fast Facts Notice and C21 E-mail
Reference Number: 7

If you have any questions concerning these procedures, please contact Charles
V. Bebel at 299-2130, Angel Rivera at 299-2150 or Anthony Di Benedetto at
299-2152 prior to the expiration date.

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

"http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&
refdoc=(01-15)"

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


The FINAL Violation Memos for 11/19/01 have been published and are available for viewing on the ERV: http:\\erv.corp.enron.com - Violation/Notification Memo Section.


Cynthia,

I had to adjust the NGI-Socal index price in the spreadsheet which resulted
in a loss of $264,000.  Attached is the corrected spreadsheet.  Sorry for the
inconvenience.

Susan


---------------------- Forwarded by Ami Chokshi/Corp/Enron on 06/16/2000
12:24 PM ---------------------------

"Steve Holmes" <Steve.Holmes@dvn.com> on 06/16/2000 10:41:55 AM
To: <Ami.Chokshi@enron.com>, <Clarissa.Garcia@enron.com>
cc:

Subject: EI 315/329 Revised Availability Effective 6/17/00 (Tennessee P/L)

I just received notification from the Eugene Island 315 platform that they
will be shut-in for 2-3 days while the drilling rig moves off location.  I
will notify you Monday morning of its status.

Thanks,
Steve

 - EI315329reveff061700.xls


Tana:

Please send Mark Greenberg a hard copy of the DynegyDirect ETAs with
addendums that I negotiated for ENA and EPMI.

Mark:

Please note that when negotiating an ETA for EPMI or Enron Gas Liquids, for
instance, unless the passwords can be restricted to physical products only,
it is necessary to include language like the language I included in the EPMI
addendum to make clear that notwithstanding the fact that an EPMI password,
for instance, is used to enter into a financial power transaction, the Enron
entity that is a party to the agreement is ENA and the transaction is
governed by the financial derivatives agreement between Dynegy and ENA.

Leslie


The maintenance fee for S-Plus that was invoiced September 2001 has not been
paid.

Due to our current situation, I assume that only in a crisis would the $1,740
be paid.  So let me know immediately if you even think you will need to call
the help desk.   With advance notice, we might be able to get a check to them
in 48 hours especially if high dollars are involved in your analysis.

Please note that at this time, we have NOT been notified that we do not have
support.  We will not get an upgrade until payment is received.

I will continue to try and mitigate this situation with Insightful.

Please contact me if you have additional questions or concerns.

Patricia

---------------------- Forwarded by Patricia Hunter/EWC/Enron on 03/01/2002
02:02 PM ---------------------------

Mark V Walker
02/11/2002 05:39 PM
To: Patricia Hunter/EWC/Enron@ENRON
cc: Hollis Kimbrough/EWC/Enron@ENRON, Mark Fisher/EWC/Enron@Enron

Subject: Re: Insightful Newsletter - February 2002

Patricia,
Is Statserver version 6.0 available to us at no extra cost due to support
agreements?    If so then has Insightful contacted you on when we will get
our copy?  Thanks.

<jmartin@insightful.com> on 02/11/2002 05:05:30 PM
To: undisclosed-recipients:;;@insightful.com
cc:

Subject: Insightful Newsletter - February 2002

February 2002 Newsletter

************************************
Insightful Launches StatServer 6.0 Analytic Software

Insightful announced availability of StatServer 6.0, a major upgrade to the
company's software for data analysis via the Web. StatServer 6.0 provides
easy access to high-end analytics and graphical reports that reveal patterns,
trends and relationships in data. New data analysis and visualization
features help users access, analyze and share information faster using a
simple Web browser.

For a complete press release, see
http://www.insightful.com/company/release.asp?RID=105
************************************


see desk file


You have received this email because the requester specified you as their Manager. Please click http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000054493&Page=Approval to review and act upon this request.

Request ID          : 000000000054493
Request Create Date : 8/20/01 2:53:23 PM
Requested For       : darin.presto@enron.com
Resource Name       : Enpower North America West Production Scheduler - Schedule Deals
Resource Type       : Applications


- GC010507.xls


Qatar, UAE Dolphin Proj Gas Price About $1.30/M BTUs-MEES
Dow Jones International News, 05/07/01

The `dis-investment' climate
Business Standard, 05/07/01

Many find Lanier still making sense
Houston Chronicle, 05/07/01

Pay increases for state's top CEOs
Associated Press Newswires, 05/06/01

India: Why Dabhol makes sense for Reliance
Business Line (The Hindu), 05/06/01

India: Agenda for fresh talks with Enron chalked out
Business Line (The Hindu), 05/06/01

Darkness triumphs
The Times of India, 05/06/01

Should we persuade Enron to stay on?
The Times of India, 05/06/01

Irrigators say utility must provide them cheap power
Associated Press Newswires, 05/05/01

Professionals' Safer Picks Paid Off Last Quarter
International Herald Tribune, 05/05/01

Godbole committee meets sans DPC representation
Press Trust of India Limited, 05/05/01

Energy Executives Make Millions Selling to Deregulated Market in California
KRTBN Knight-Ridder Tribune Business News: The Orange County Register -
California, 05/05/01

Qatar, UAE Dolphin Proj Gas Price About $1.30/M BTUs-MEES

05/07/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

DUBAI -(Dow Jones)- The fiscal price for natural gas from Qatar's North Field
to be supplied on a CIF basis under the Dolphin project to Abu Dhabi is
around $1.30 per million British Thermal Units, the Middle East Economic
Survey reported Monday, citing sources.
The price includes the basic production price agreed on by Qatar Petroleum
(QP) and the UAE Offsets Group, or UOG, plus the costs of compression and
transportation of the gas through a 350-kilometer pipeline along with
seasonal adjustments for peak demand, MEES said.
The Dolphin project is a $3.5 billion deal agreed to two years ago by UOG and
QP aimed at sending 2 billion cubic feet a day of natural gas from Qatar's
offshore North Field, piped by sea to Abu Dhabi and also for onward delivery
to Dubai and possibly Oman.
MEES said the $1.30 per million BTU price will also be subject to 2% annual
escalation.
Qatar had hoped for a higher basic price but instead, an agreement was
reached whereby upward adjustments were made to the quantities of liquids
stripped from the gas under the prospective production sharing agreement, or
PSA, thereby increasing Qatar's revenue, MEES added.
QP and Dolphin Energy Ltd., or DEL, a subsidiary of UOG, signed a term sheet
agreement in March for the upstream section of the project.
The next step will be for the two parties to sign the full PSA for the 2
billion cubic feet a day to be delivered over 25 years to the U.A.E.
The term sheet specified the PSA would be signed by September at the latest,
MEES said.
TotalFinaElf (F.TFE) and Enron Corp. (ENE) each hold a 24.5% stake and UOG a
51% stake in DEL.
TotalFinaElf is to operate the upstream phase of the project, which includes
developing natural gas reserves in two blocks of Qatar's giant offshore North
Field, in which the first wells are scheduled to be drilled in the second
half of 2001 and come onstream in 2005. Enron will focus on gas
transportation, which requires building the 350-kilometer pipeline from a
processing plant in Ras Laffan, Qatar, to the Al-Taweelah terminal in Abu
Dhabi and the Jebel Ali terminal in Dubai.
A further phase of the Dolphin project will cover the delivery of an
additional 1 billion cubic feet a day of natural gas, if it is deemed
feasible.
MEES said the foreign partners have yet to agree on the precise details of
their working relationship and on the price of the pipeline. TotalFinaElf and
DEL have said Enron's estimated price for the pipeline is too high. Sales and
purchase agreements with U.A.E. customers are also not yet concluded.
-By Dyala Sabbagh; Dow Jones Newswires; 9714 3314260;
dyala.sabbagh@dowjones.com

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

The `dis-investment' climate
A V Rajwade

05/07/2001
Business Standard
10
Copyright (c) Business Standard

In last week's article, I had expressed reservations about the 6/6.5 per cent
real GDP growth projected for the current fiscal year. Recent events in the
Indian political economy do impinge on the credibility of governance, and may
worsen the investment climate. A few years back, central ministers were
talking of a $ 10 billion inflow of foreign direct investment by the turn of
the century. The century has turned but the investment flow is stagnant at a
quarter of that.
Consider some of the recent decisions, and their after-effects. The central
government, having sold Balco to Sterlite, is unable to deliver. The strike
continues and the poor chief minister of Chhattisgarh, whose wife had to
apply for a petrol pump licence to keep home fires burning, remains as
partisanly recalcitrant as ever. Surely future bidders for public sector
assets, particularly in Chhattisgarh, will remember Balco.
The very limited response to the privatisation of Indian Airlines, Air India,
MTNL, VSNL, and so on could well translate into low prices. Nor would the
recent controversy over WiLL (wireless in local loop)be found reassuring by
intending investors, whether foreign or domestic.
The telecom sector has probably attracted more foreign investment than any
other, one of the biggest investors being Hutchison of Hong Kong. After the
decision of the Telecom Regulatory Authority of India on the issue, Hutchison
had announced that it will suspend further investment in the country.
This seems unlikely to change after the more recent labours of the curiously
acronymed GoT-IT. Mr Paswan's argument that WiLL is "pro poor" is difficult
to swallow when the instrument reportedly costs more than a cell phone! The
cellullar phone operators are obviously unhappy and have gone in appeal and
Mr Sivasankaran is offering to pay Rs. 2,500 crore for a quarter of the
WiLL-space offered free to basic telephone operators. What a mess!
The hesitation of investors to come into the country would also get affected
by the way the Enron affair gets resolved (more on this in a later article).
Incidentally, on the subject of the general direction of economic policy,
unions sponsored by participants in the ruling alliance were themselves part
of the previous week's strike. Indeed, the BJP's own union boss has
criticised the direction of government's policies, and so has the RSS. Mr
Gurumurthy of the Swadeshi Jagaran Manch has termed the GoT-IT deliberations
on WiLL a "fraud on (the) people".
If the leading party in the ruling coalition does not enjoy the confidence of
its own followers/parents (who seem closer to the Congress or the left on
issues like WTO, privatisation or foreign investments), what credibility
would it carry with investors, foreign or domestic? Nor does there seem to be
any effort to explain the rationale underlying the policies to the people.
Apart from the general climate, some specific decisions in terms of foreign
investment are equally puzzling. Daewoo was denied permission to convert its
dues from the Indian company into equity. Why? Would the government prefer
the money to go out if and when Daewoo India regains its health?
In another recent instance, four different applications of Shell, the giant
oil company, were rejected on one day. From what has appeared in the press,
it is difficult to appreciate the rationale. One of the more curious reasons
was that one Shell application, if cleared, would have contravened a Gujarat
government law the interesting part is that the seller of the equity to
Shell, to buy which the investment application was made, is a Gujarat
government undertaking! Frankly, the ostensible reason for rejection seems
less than convincing, more so when all such approvals are in any case subject
to all applicable laws!
If there are question marks about the climate for direct investment, whether
domestic or foreign, whether for greenfield projects or privatisation, one
wonders whether the happenings in the equity market and the suddenly
hyperactive Securities and Exchange Board of India (Sebi) would dampen
portfolio investors' enthusiasm as well. For a student of the financial
markets, Sebi's recent stance and summary punishments look to be in sharp
contrast with its deafening silence when the index registered a very sharp
rise up to 6,000 last year. Or is it that only sharp falls, and not sharp
rises, are prima facie pointers of malpractices? All the affected parties
have denied the charges and appealed to the courts. Meanwhile, the FII
inflows have held up well. But for how long particularly if the action
against CSFB is not backed by a transparent and convincing case? (To be sure,
CSFB hardly has a lily-white reputation in the last couple of years alone, it
has faced the wrath of regulators in Japan, UK, Scotland, US and
Switzerland). And, with external debt flows likely to be negative in the
current year, equity inflows are important to our balance of payments.
Not all signs are negative, particularly in the IT sector. Conseco, the big
insurance company, has announced the takeover of a major call centre and is
transferring a huge amount of back office work to India at a cost saving of
$30 million. (Incidentally, if workers of the world were to unite as they
have nothing to lose but their chains, our trade unions should be protesting
against the Conseco move in keeping with their anti-globalisation stance).
Major IT companies like Microsoft, Sun, Oracle, and others have announced
that the recent slowdown in the US will not affect their plans in India.
Indeed, Hewlett-Packard and Lucent are adding staff here. But, even in IT,
one would be foolish to ignore the potential competition from China. It is
importing 20,000 English language teachers, which will negate our major
competitive advantage. It is far ahead of us in hardware (exports $ 20
billion in 2000), telecommunication and other infrastructure, and catching up
in software (exports $ 3.6 bn last year).
As it is, we are 41st in 49 countries analysed in the recent World
Competitiveness Yearbook, down two notches from the last survey. If the
general climate and credibility remain where they are, we can bid goodbye to
even 6.5 per cent growth did the prime minister say 9 per cent?

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

May 7, 2001
Houston Chronicle
Many find Lanier still making sense
By JOHN WILLIAMS
It's a phrase much copied around Houston, one that tells it like it is
without telling it all -- "That's my sense of it."
When he was mayor, Bob Lanier repeated it so often that a passel of
politicians and pundits, business leaders and bureaucrats began emulating it,
at times mimicking Lanier's whispery baritone.
Since then, "That's my sense of it" or "My sense is" have evolved into
staples of Houston political jargon.
On the surface, the phrase appears blunt, that the teller is speaking
exactitudes. When Lanier used it to describe his observations, the message
was straight to the point.
But it's a good phrase, especially for a politician, because it provides a
back door.
The person using it is implicitly saying "this is true based on current
information." New information can catalyze a new sense of things.
Though Lanier was term-limited from office in 1998, his sense of things
continues to be solicited by power brokers and wannabes.
Lanier is constantly on the horn, advising those tapping his sizable
knowledge base.
Advice for bits of gossip
In recent weeks, Lanier has offered strategy to all three major mayoral
candidates -- incumbent Lee Brown and City Council members Chris Bell and
Orlando Sanchez -- as well as to one who decided not to run, City Controller
Sylvia Garcia.
He chats with people dallying with the 2003 mayoral race, with those watching
water, transportation and downtown development issues.
Those who call Lanier from time to time include former President Clinton,
Gov. Rick Perry and Enron Chairman Ken Lay.
Sanchez calls Lanier "The Oracle," after the Greek deities who answered the
questions of mortals.
People call Lanier offering observations and gossip in return for advice.
Ring-kissing by visiting devotees assuages his sizable ego.
Lanier's unique background -- he's been a sports reporter, lawyer, developer,
banker, state Highway Commission chairman and mayor -- provides different
vantage points for his observations. He can think through problems on
different levels, decipher problems in politics, finance, development or
public policy.
If knowledge is power, Lanier at times appears more the powerhouse than his
successor.
Brown doesn't seem to enjoy the social and intellectual gamesmanship Lanier
relishes. Lanier gabs with journalists, professors, lobbyists, pollsters and
others who provide a sense of the city's intricate political balance of
power.
"It's just not Brown's shtick," said a lobbyist close to Lanier and Brown.
"Part of being a good political player is the love of talking gossip."
Lanier's penthouse home atop The Huntingdon in River Oaks serves as a Tibetan
mountaintop for those seeking total political consciousness. Lanier and wife
Elyse throw parties for political players of all ilk who allow him to remain
a clearinghouse of information.
Keeping a hand in deals
Lanier continues to influence local decision-making.
He pieced together a downtown convention hotel deal between the city and
developer Gerald Hines.
The downtown rail system is going down Main and Fannin largely because of
Lanier. Afraid Lanier would rise to swamp a broader rail plan for the entire
region, Metro officials pared down their vision to a level Lanier would
accept.
Metro Chairman Robert Miller is a regular visitor at the Laniers' home.
Lanier was key in developing the Greater Houston Partnership's recent
comprehensive program for preserving mobility.
Lanier's current sense is that Houston is healthy, striding to address
transportation, water supply, air pollution and other problems. Brown should
win re-election, unless continued bumbling like a recent pothole scandal
create a critical mass of negative publicity.
Either way, at age 76, gimpy knees, problematic heart and all, Lanier will be
at the center of most civic discussion.
In the end, Lanier's lasting legacy may be the knowledge and wisdom he passes
to the next generation of Houstonians.
At least, that's my sense of it.

Pay increases for state's top CEOs

05/06/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

ST. PAUL (AP) - Paychecks for the highest-paid chief executives in Minnesota
are on the rise, but they still lag behind those of corporate leaders
elsewhere, according to a published report.
In a survey of the 100 largest publicly held corporations in Minnesota, the
Saint Paul Pioneer Press found the 10 highest-paid chief executives received
a total of $230.1 million in 2000, the newspaper reported Sunday.
That's up 71 percent from the $134.6 million the state's top 10 made two
years earlier. The 1998 total was up 171 percent from 1993.
William McGuire of UnitedHealth Group was the highest-paid chief executive in
Minnesota, making $54.1 million in a package that included exercised stock
options.
The highest-paid chief executive in the country - Citigroup's John Reed -
made $293 million in total pay in 2000, according to a national survey in
Business Week. The lowest-paid among the magazine's top 20, Enron's Jeffrey
Skilling, pulled in $72.5 million - 29 percent above McGuire's compensation.
The Pioneer Press survey also found that total cash compensation, which
excludes gains from stock options and other long-term pay, rose 14 percent
last year. That compared with an 18 percent gain for executives in the
Business Week survey.
"The figures are troubling," says John Stout, an attorney with the
Minneapolis law firm of Fredrikson & Byron. Stout serves on the advisory
board of the National Association of Corporate Directors, and is a former
president of the association's Minnesota chapter.
"There is a general perception that boards of these big companies aren't
doing their jobs when it comes to CEO compensation."
Stout stresses that his comments apply to the overall picture. Looking at the
pay alone at any single corporation is not enough, he says, noting that the
performance of these companies is also a key consideration.
The chief executive data breaks total pay into three categories: salary and
bonus payments for 2000, long-term compensation and stock options.
The Minnesota survey counts options as pay in the year that an executive
exercises his or her right to buy the stock. Other surveys count options in
the year that they are granted, plugging in standard formulas to estimate
their future value.
Long-term pay is mostly compensation in the form of "restricted stock" -
outright grants of shares. Typically, these grants carry a requirement that
the executive must stay with the company to receive the shares.
Pay packages have rocketed in recent years, mostly because executives have
won sizable stock options. As the stock market has soared, so has the value
of their options.
Last year's pay packages in Minnesota illustrate the importance of stock
options. At UnitedHealth Group, salary and bonus payments accounted for only
about a seventh of McGuire's overall package. The rest came from options
exercised.
Options provided an even greater portion of overall pay for other top-paid
chief executives in Minnesota.
The new pay survey for Minnesota shows that 13 chief executives landed
sizable gains, at least 25 percent, in cash compensation - salary and bonus -
last year. Meanwhile, the salary and bonus total fell significantly for just
five chief executives.

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

India: Why Dabhol makes sense for Reliance

05/06/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

"ENRON will always consider a legitimate proposal to sell an asset if it
makes strategic sense but we are not currently pursuing the sale of our stake
in Dabhol Power Company."
- A spokesperson of Enron India
"Enron is still running Dabhol Power Company. They are our partners in oil
exploration. We look at value propositions as and when they arise. We have an
open mind"
- Mr Anil Ambani to a question if Reliance was interested in taking over the
Dabhol powerproject.
TO BE sure, there is nothing to suggest that it could be happening yet. At
least there is nothing in the public domain. But ever since word started
going around that Enron may sell its stake in Dabhol Power Company (DPC)
there has been intense speculation that Reliance could be among the frontline
contenders. The Reliance Industries Managing Director, Mr Anil Ambani's
statement is the only official comment on the subject to date. And it neither
confirms nor denies the speculation in the market. It is indeed significant
that Mr Anil Ambani has not categorically ruled out Reliance's interest in
DPC.
But why should the Reliance group be interested in DPC? How does Dabhol fit
into the group's plans? In other words, how does it make sense for the
oil-to-petrochemicals major to consider buying out Enron from DPC if the
opportunity arises?
Acquiring DPC would make eminent strategic sense for the Reliance group. The
2,184 MW power plant and the associated LNG (liquefied natural gas) import
and regasification facility fit in well with its growth plans in the power
sector and in petrochemicals too. Power is one of the focus areas in the
Reliance group's future expansion plans. But it has not been able to make
serious progress in either the mega 3,960 MW project in Hirma, Orissa, or in
the 447 MW Patalganga project due to diverse reasons. While the Hirma project
is bogged down in sovereign guarantee issues, the Patalganga project is held
up with the Maharashtra State Electricity Board (MSEB) declining to provide
escrow cover.
In this backdrop, DPC's state-of-the-art, operational power plant presents a
great opportunity for Reliance Power to make its mark.
The project is at the right stage from an acquirer's viewpoint.
One part of it is already operational while the other is set to go on-stream
in a few months time. All the funds due from lenders, save a small part, have
been disbursed and construction is almost completed.
So no major project management problems here.
The only sticky point is the dispute over the power purchase agreement (PPA).
But a new promoter can facilitate a review of the PPA and its controversial
terms.
Besides, it may be easier for the Government to take a fresh look at the
project once Enron is out of the picture and is replaced by an Indian
company.
LNG project, the clincher
The Dabhol project assumes added strategic importance due to the associated
LNG import terminal. Reliance plans to set up LNG import facilities on the
Gujarat coast. The LNG business is a long-term proposition by its very
nature. The key to its success lies in tying up the entire chain from the gas
source and liquefaction facility to cryogenic transport, import
terminals/regasification plant and, finally, finding assured buyers for the
gas. The tricky part is identifying the gas supply source and a collaborator
with the financial strength to set up the liquefaction and export terminals.
The final challenge is to tie-up dedicated gas consumers in the vicinity of
the import terminal.
On all these counts the Dabhol project is the best bet. It already has an
assured gas supply source in West Asia. The LNG transporting vessel is almost
ready in Japan and will be delivered by November.
The critical point here is that all the exploitable sources of natural gas in
the West Asia are tied up by one buyer or the other and any new LNG importer
on India's west coast may find it difficult to find fresh supply sources. The
Dabhol LNG project assumes additional importance having tied up its supply
source.
Besides, DPC has installed LNG capacities much in excess of the needs of the
power plant. It has close to 5 million cubic metres of capacity when all it
would need is about 2.1 million cubic metres for power generation. This extra
gas can be sold to industries in the Gujarat/Maharashtra belt which are
hungry for energy. More important, from Reliance's viewpoint is that this gas
can be used to operate its Patalganga plant where fuel cost is an issue. All
it would need to do is lay pipelines from the import terminal to the
hinterland.
The natural gas can also be piped to its Hazira petrochemical complex where
it runs a mother cracker that can operate on naphtha or natural gas. It is
presently operating on naphtha, which is notorious for its volatile price
swings. One of the factors behind the fall in earnings growth of Reliance
Industries in the last quarter of 2000-01 was the high naphtha cost. Reliance
can overcome such handicaps if it is able to shift to natural gas for the
cracker. Thus, whichever way one looks at it, the Dabhol project appears an
excellent strategic fit to Reliance and its business plans.
Enron has denied any plans to exit from the project now but it has not ruled
it out for all time. The multinational is turning its focus to energy trading
and broadband businesses and its chief is on record saying that it should not
be operating power plants in Third World countries. Given the troubles that
it has encountered in the Dabhol project, it would not be surprising if Enron
exits at some future date. But that is assuming that it gets a good price for
all the assets created and the trouble endured. Therein lies the rub in the
entire deal. If Reliance is able to offer that "good price" then it may land
up with a strategically excellent acquisition. All these are possibilities.
As of now, both Enron and Reliance would like to lie low and deny any
interest in a courtship, at least in public.
Raghuvir Srinivasan

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

India: Agenda for fresh talks with Enron chalked out

05/06/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

Mumbai, May 5. OFFICIALS of the State Government, Maharashtra State
Electricity Board (MSEB) and members of the Madhav Godbole committee, which
recently submitted its review on the Dabhol Power project, met here on
Saturday.
The meeting was to "chart the agenda for renegotiation with Enron officials,"
a senior MSEB official said.
Enron officials were scheduled to attend this meeting but backed out on May
3. Enron had informed the State Government that it would not accept the
recommendations of the Godbole committee.
Our Bureau

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

Darkness triumphs

05/06/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MEN & IDEAS / Gurcharan DasThere is no use pretending that the departures of
N.K. Singh and Montek Singh are not going to hurt. They are. The two men are
very different. Montek is an elegant economist and NK is a natty networker
who knows how to turn every screw in the government's machine. But both are
reformers. N.K. Singh has been transferred from the Prime Minister's Office,
where he coordinated the PM's economic agenda, to the Planning Commission.
Montek is leaving to head the Independent Evaluator's office for the
International Monetary Fund.
Earlier, he was finance secretary, where he had spearheaded many an economic
reform ever since the summer of 1991.
Both men have fallen victim to the RSS and the swadeshi lobby. Although
Muralidhar Rao and Dattopant Thengadi may have precipitated NK's recent
departure, all anti-reformers are delighted. The communists, the leftists,
the Samatas and the Mamatas, and the considerable forces of darkness in the
Congress would rather live with inefficient and corrupt public sector
monopolies than have anything to do with competitive markets.
Montek's achievements are well-known, but NK too leaves a considerable record
of reform, culminating in the recent path-breaking budget with dramatic
reforms in labour, agriculture, and industrial policy. It contained both
Vajpayee's and Sinha's reforms, and was a product of teamwork between North
and South Blocks. NK's networking skills with the ministries were crucial. He
has left a mark on many Vajpayee initiatives: the current momentum in
building highways, the new "open skies" policy (held hostage for so long by
the civil aviation ministry), the decision to lease five major airports, the
new energy behind ports privatisation, the resolution of the telecom tangle
via an excellent telecom policy -- the ruckus over WiLL notwithstanding, and
the soon to be announced liberalisation of drugs price control.
Against these successes is failure in the power sector and the Centre's
inability to get the states to reform SEBs. The lack of initiative on Enron
is also inexplicable. India cannot afford to let Enron blow up and destroy
our credibility with the world. At one go we could lose our reputation for
honouring contracts. Remember, Enron's board members, James Baker and Kenneth
Lay, are George W. Bush's closest friends.
Reforms don't happen without reformers. Even the most reform-minded minister
needs a reforming officer to help build pro-reform coalitions in the
bureaucracy, the party and in Parliament. Few realise A.N. Varma's stellar
role when he was Prime Minister Narasimha Rao's secretary. His legendary
Thursday meetings with economic secretaries became the crucial instrument for
the blistering pace of reform between 1991 and 1993. Varma was a terror and
ran his committee tightly. No one was allowed to travel on Thursdays. The
committee met for only two hours, when the reform in question was openly
discussed. Varma summarised and minuted the outcome and the reform proposal
was taken to the cabinet for approval, and then on to Parliament. Many of us
remember our excitement in those golden years as a new reform was announced
every week.
Just as Narasimha Rao had Varma, so Manmohan Singh had Montek. Chidambaram
had Jairam Ramesh, and Vajpayee had N.K. Singh. These minister-officer
partnerships have been crucial in making reforms happen. Those who criticise
the PMO for becoming too powerful forget that in our political model,
ministries are independent and someone has to coordinate our chaotic
government. It used to be the cabinet secretary, but when you want strategic
management of change, then you require initiative and pro-activity. Who
knows, a powerful, hands-on secretary might have been able to prevent the
Fifth Pay Commission disaster -- the lowest point in our economic history of
the 1990s.
To our worthy anti-reformers, who are gloating over NK's and Montek's exit, I
ask: How can you oppose the work of reformers who are trying to, for example,
reduce the theft of electricity by employees of the state electricity boards?
If this theft is reduced from 30 per cent today to only 18 per cent, there
will be enough capital to build sufficient new power capacity. But the only
way to stop thievery is by privatising distribution, for no private
distributor will allow his power to be stolen. Thieves don't steal power in
Mumbai and Calcutta because distribution is private. Our anti-reformers
retort, "Don't privatise power, just catch the thieves!" Well, for fifty
years we have not been able to catch them. Should we wait another fifty?
Think about this: The next time you oppose reforms and reformers you vote for
public sector thieves rather than competitive markets. Liberalisation is not
a matter of ideology. It is common sense to want clean, uncorrupt services.
The only losers in privatisation will be thieves and lazy workers. The
winners will be the Indian people.
Comment: gurcharandas@vsnl.com or Post Box 3046, New Delhi 110003

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

Should we persuade Enron to stay on?

05/06/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

IN BLACK & WHITE / Harry DhaulYes. Renegotiate by all means, but honour the
deal
If Enron is the sole evil in the power sector, I would say remove it from
India. If that solves the myriad problems of our industry, farmers and
consumers, go ahead and ask Enron to leave. But it won't solve the underlying
problems, will it?
I am not holding a brief for Enron, but suppose you ask the company to leave.
What next? It is only another way of postponing decisions which electricity
boards have to take anyway.
Though facts and figures have been thrown around about how much India would
gain if Enron were to leave, I assure you our liabilities would be much more.
There would be penalties to pay for various contractual obligations.
In all this talk, most people forget one thing -- the sanctity of a contract.
Is there a rule of law in this land? This kind of commercial deal is done the
world over. If a government can't honour a contract and that too the biggest
India has got, how can you expect anybody else to do so?
Okay, if the forces operating in the market have changed and the contract
needs to be renegotiated, do so. But is it fair to tell a company after a few
years: Sorry, please pack up and leave? Especially a company which has stuck
to all the conditions of the contract.
And imagine what this will do to foreign direct investment in our country. Is
this the climate which foreign companies would want to be thrown into? I
don't think so.
Having said this, there is still ample scope for renegotiation on the
commercial terms. The tariffs can be brought within reasonable limits and
there are reasons for this. Firstly, gas prices are going down, so we can get
a good deal out of this project. Secondly, the prices of gas turbines have
also gone down and we should be able to benefit from it.
Thirdly, the efficiency of gas turbines has gone up by nine per cent. This
will bring down the cost of electricity.
Of course, critics of Enron will say the power generated is costlier than
that generated within the country. But that's natural considering the amount
of power bought is less than optimal. Once this quantity goes up, the rates
will come down and be on a par with government power projects based on liquid
fuels like the National Thermal Power Corporation in Kerala. The tariffs,
contrary to popular notion, of both are in a similar range -- Rs 4-5 per
kilowatt hour. But is NTPC being paid for the power it generates? No.
The basic mistake lies with our policy-makers who allowed such power projects
based on liquid fuels. Even thermal power, generated by NTPC, costs Rs
1-1.50. But this is not being paid for by state governments. What's the
justification for that?
State electricity boards have to pay close to Rs 26,000 crore to central
power-generating units -- Rs 17,000 crore has to be paid to NTPC. So how will
the scrapping of the Enron project help? Despite all this, there is severe
power shortage.
Renegotiation would help restore some of the lost confidence among foreign
investors. The deal can and should be improved in national interest. And more
importantly, the government should honour it. How can you penalise a company
which has brought the largest investment into the country?
Also, if Enron leaves, what about its assets here? Of course, somebody could
buy it but again the question arises: Will they be paid? Will asking Enron to
leave help our electricity sector? This kind of mob mentality that targets
Enron won't help matters. Our power utilities should be improved first.
(Harry Dhaul is D-G, Independent Power Producers Association. He spoke to
Shobha John)

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

Irrigators say utility must provide them cheap power

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

IDAHO FALLS, Idaho (AP) - PacifiCorp is headed back to court with the
cooperative of eastern Idaho irrigators that wants to use the utility's
transmission lines to carry cheaper power bought from another company.
PacifiCorp missed a May 1 deadline to appeal last October's 9th U.S Circuit
Court of Appeals ruling that the utility cannot use an Idaho statute to
protect itself from being sued under federal antitrust law.
The appellate ruling opened the door to electric deregulation in Idaho, which
has had some of the cheapest power rates in the nation. That prospect
prompted a special legislative session last December to close that loophole.
That action was ratified during last winter's regular legislative session.
But the legislation does not affect the PacifiCorp battle with the
irrigators. And the missed deadline clears the way for a jury trial in
federal court to determine whether the utility and its Utah Power & Light
subsidiary have been in violation of federal antitrust law in their dispute
with the Snake River Valley Electric Association.
The cooperative wants PacifiCorp to supply its power at the same rates the
group negotiated in 1997 with Texas-based Enron. The Enron contract lapsed
when it became obvious the court case would preclude any wheeling of the
outside power through PacifiCorp transmission lines.
Association spokesman Carl Palmer pointed to a statement made by PacifiCorp
lawyer David Jordan, who at a hearing in 1997 said, "I am committing
PacifiCorp to provide wholesale power at the same rates and on the same terms
to Snake River as the Enron contract, the same length of time, same price."
If PacifiCorp is required to meet the terms the cooperative arranged with
Enron, the cooperative initially would be able to buy electricity at $18.75
per megawatt hour. The rate would rise to $25.13 per megawatt hour by the end
of the five-year agreement - still about one-tenth the current wholesale
market price.
"As soon as the lawsuit is settled, they're bound to sell us this power,"
Palmer said.
PacifiCorp Spokesman Dave Eskelsen said the company's position is that it is
not obligated to let the association use its lines, and that the company is
not violating antitrust law with its refusal.
The utility has filed a petition with the Idaho Public Utilities Commission,
seeking support for its stance.

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

MONEY REPORT
Professionals' Safer Picks Paid Off Last Quarter
Anne Bagamery
International Herald Tribune

05/05/2001
International Herald Tribune
15
(Copyright 2001)

EAT WELL or sleep well. The process of buying stocks requires an investor to
make many choices along the way, but they all boil down to that one: whether
to buy shares in companies that may bring huge rewards, but at a certain
risk, or to make safe, steady bets that would not keep anyone awake at night.
Professional investors, however, try to have it all: They want to recommend
stocks that will pay off handsomely for themselves and their clients, but
they also want to narrow the odds. That is why analysts and money managers
spend their days (and sometimes nights) researching the fundamentals of an
industry sector, or poring over technical charts, or listening to Alan
Greenspan to try to divine the next macroeconomic trend.
Sometimes the market throws a curve, and all that hard work goes for naught.
But sometimes it pays off. The first quarter of 2001 was one of those times.
Of the 92 stocks recommended by professionals in The Money Report in the
first three months of the year, 52 rose in price by the cut-off date of April
27 an astounding record, considering the carnage in world stock markets
during January, February and March.
Otherwise, 38 stocks fell, most of them at the high end of the technology
spectrum. Among the notables, XTL Biopharmaceuticals PLC, the biggest
decliner in the period, fell more than 51 percent, and Cisco Systems Inc., a
bellwether for the Internet economy, tumbled 24 percent.
Rounding out the picture, of the remaining two equities, Boeing Co. was
unchanged from the price at which it was recommended, and Enron Corp. was
mixed: Investors who bought shares in the huge engineering company on Feb.
10, when they were recommended at $80.20, would have booked a 21 percent loss
by the end of April, while those who waited until March 31 to jump in at
$58.10 a share would have made 9 percent.
It would be tempting to conclude that the overall record shows the wisdom of
choosing staid, boring old economy stocks over flighty, unprofitable new
economy parvenus.
It is true that in the first quarter, the safe bets usually paid off.
Unilever NV, the British-Dutch consumer products giant, and Wal- Mart Stores
Inc., the world's biggest retailer, rose 5 percent and 4 percent,
respectively, in a quarter when neither did much of anything except take care
of business. Rakuten Inc., a Japanese Internet retailer that was the darling
of the market last April, had come to earth by this year: Its shares,
recommended as a turnaround play in February, fell 25 percent.
-
Nowhere was the contrast between bricks and clicks more pronounced than in
the Lehman Brothers Inc. list of "10 Uncommon Euro Values," featured in the
Feb. 24 issue. Of the 10 stocks recommended, six tumbled, including such
technology brand names as Alcatel SA (down 19.7 percent) and Siemens AG (down
1.5 percent).
Logica PLC, a British technology-consulting concern, was the biggest loser,
falling 31 percent.
The four that rose are in plain-vanilla businesses such as supermarkets
(Ahold NV), electricity (ENI SpA), cars (PSA Peugeot Citroen SA) and Lemsip
(Reckitt Benckiser).
The folks at Lehman did set a good example for individual investors by
diversifying, picking stocks in a variety of sectors from six countries, and
emphasizing that these were stocks to buy and hold for the year, not flashes
in the pan.
Speaking of good examples, special mention should go to three analysts whose
astute stock-picking stood out in the first quarter:
Howard Ward of Gabelli Growth Fund. With mergers and layoffs and chaos
swirling all around media stocks, it takes a courageous person to recommend
AOL Time Warner Inc. and Viacom Inc. But Mr. Ward, who participated in the
previous quarter's investment roundtable, sifted through the industry
wreckage and noted that while the stocks of AOL and Viacom had been battered,
the companies' business models remained intact meaning that, fundamentally,
they were still doing something right. AOL shares rose 16.6 percent;
Viacom's, 4 percent.
Bill Greiner of UMB Financial Corp.'s UMB Bank. Energy stocks, as a group,
were some of the best performers, helped along by a rise in oil prices and
the salutary effects of a wave of mergers two years ago. Mr. Greiner
identified winners in a range of industry subsectors, including integrated
oil (BP Amoco PLC, which rose 12 percent in the period), gas (Apache Corp.,
up 9 percent) and oilfield services (Halliburton Co., up 6.5 percent, and
Schlumberger Ltd., up 10 percent).
Richard Davidson of Morgan Stanley Dean Witter & Co. Asked to identify
European stocks resistant to a slowdown, in the Feb. 17 issue he named some
solid winners and refreshing logic.
He recommended two cable-television companies, Sogecable SA of Spain and
Telewest PLC of Britain, reasoning that people without the money to go out
could always stay home; Sogecable rose 18 percent, while Telewest slipped 1.7
percent.
He also suggested two tobacco stocks, Altadis SA of Spain and Swedish Match
AB, reasoning that the last thing a financially struggling smoker would give
up was the habit. Swedish Match rose 19 percent, while Altadis fell 8
percent.
Finally, Mr. Davidson recommended a pair of security-services companies
Securicor PLC of Britain and Securitas AB of Sweden because he reckoned that
in tough times, people might have less wealth than before, but they would
want to hang on to whatever they had. Securitas rose 4 percent, while
Securicor slipped 3.6 percent.
-
ONE group of prognosticators that did not find fortune in the first quarter
were the shorts, analysts who recommended stocks to sell or avoid. This is a
high-risk game in the best of times a wrong bet can have theoretically
unlimited losses but it is particularly nerve-wracking in a reluctant bear
market such as the current one, when pockets of optimism keep peeking through
the gloom.
Of the six companies mentioned as fundamentally lacking in value or
prospects, four rose: Banca di Roma SpA, Body Shop International PLC, General
Electric Co. and National Express PLC. The other two, Natexis Banques
Populaires and Pepsi Bottling Group Inc., had mild losses.

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

Godbole committee meets sans DPC representation

05/05/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Mumbai, May 5 (PTI) The Godbole committee, set up for renegotiating the
estranged Power Purchase Agreement (PPA) between US energy major Enron
-promoted Dabhol Power Company (DPC) and the state electricity board (MSEB),
Saturday held its first internal meeting sans representatives of the
multinational.
"It was an internal meeting to take stock of the current situation and decide
on matter pertaining to the May 11 meet with officials of Enron, GE, Bechtel
and DPC's foreign lenders", state government sources told PTI here.
The meeting which lasted for almost four hours discussed a strategy to
present the committee's recommendations made public last month, they said.
Out of the nine-member committee, Saturday's meeting was attended by five
members including Godbole, MSEB chairman Vinay Bansal, state energy secretary
V M Lal, state finance secretary Sudhir Shrivastava and Kirit Parekh of
Indira Gandhi Institute of Developmental Research.
Those absent were HDFC Chairman Deepak Parekh, TERI Director R K Pachauri,
former Union Energy Secretary E A S Sarma and yet to be appointed
representatives of the Centre and Central Electricity Authority.
The negotiating committee would suggest solutions to bring down the
exorbitant power tariff, separating of the liquefied natural gas (LNG)
facility, restructuring of DPC and allowing sale of excess power through
central utilities mainly the National Thermal Power Corporation (NTPC),
sources said.
(THROUGH ASIA PULSE) 05-05 2001

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

Energy Executives Make Millions Selling to Deregulated Market in California
Chris Knap

05/05/2001
KRTBN Knight-Ridder Tribune Business News: The Orange County Register -
California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

Executives at the largest energy companies selling power into California saw
their compensation rise an average of 253 percent last year, with one top
executive collecting more than $100 million.
Call it a classic case of supply and demand: Where a commodity is scarce,
money follows. Nowhere was this more evident than inside California's
dysfunctional electricity market.
Corporate profits for energy traders and marketers nearly tripled due in
large part to the California electricity crisis, and chief executives were
rewarded with compensation packages that rose as much as 600 percent,
according to disclosures filed with the Securities and Exchange Commission.
Energy companies say the pay packages were well-deserved and reflect the
returns enjoyed by shareholders.
But consumers and ratepayer groups argue that the million-dollar salaries
handed executives in Houston, Arlington and Atlanta are excessive especially
in the wake of charges that companies manipulated California's power markets.
No energy executive made more last year than Kenneth L. Lay, chairman of
Houston-based Enron Corp. Lay collected $141.6 million in salary, bonuses and
stock, a 184 percent increase over 1999.
Enron, the nation's largest wholesale energy marketer, sells both natural gas
and electricity in California. Enron also paid CEO Jeffrey K. Skilling $72.6
million and Enron Wholesale chief Mark A. Frevert $35.8 million.
"If you could spray dye on dollars and trace them through, you would see
pipelines out of Houston carrying energy and pipelines coming back carrying
dollars," said Graef Crystal, a former executive pay consultant to Fortune
500 companies who now writes and lectures on executive compensation.
"It's an involuntary transfer of wealth from the California consumers to Ken
Lay and his cohorts. There's nothing illegal about it. But it doesn't make
the people of California feel very good."
An Orange County Register review of recently filed SEC documents also found:
Peter Cartwright, chief executive of power generator Calpine Corp., of San
Jose, earned $23.9 million, up from $3.3 million in 1999.
Dennis Bakke, chief executive of Virginia-based AES Corp., which owns plants
in Huntington Beach and Long Beach, earned $12.8 million, up from $1.98
million.
Keith E. Bailey, chief executive of electricity marketer Williams Cos., of
Tulsa, earned $7.05 million, up from $1.58 million.
Lay and Skilling declined through a spokesman to be interviewed, as did
executives at AES and Williams.
But Enron spokeswoman Karen Denne said their pay reflects their performance
in 2000 and previous years. "To be honest I don't know what the point is in
looking at power executives' compensation," Denne said. "Companies like Enron
have been working to put solutions on the table, to help California with its
energy problems."
Free-market advocates defend the energy salaries.
"It's pure malarkey that that's too much. That's what incentive pay is for,"
said William M. Cockrum, a finance professor at the UCLA Anderson School.
"From the shareholders point of view, they want the stock to go up. That's
why they invested."
Not everyone agrees.
"Outrageous. Absolutely outrageous," said Everett Bassin, 71, a retired
aerospace worker from Buena Park.
"Does (Lay) really need $140 million to live for a year?" asked Bob Dodson,
68, of Yorba Linda, who lives with his wife on a Social Security income of
$1,100 a month.
Dodson said his electricity bill rose by $30 a month this winter and his gas
bill by $100.
"These guys are plain, unadulterated, greedy jerks," Dodson said. Regulators
too have raised questions about the energy company profits.
A California Independent System Operator study said "market power" exercised
by Enron and other suppliers resulted in unfair profits that contributed
$6.87 billion to the cost of wholesale power last year. The Federal Energy
Regulatory Commission has ordered Enron, Williams and other top suppliers to
prove their prices were "just and reasonable" or refund more than $100
million.
Market power is seen when firms that control a substantial supply of a
commodity withhold it or use other tactics to drive up the price. Enron and
the other companies named in the study have denied such tactics. But Williams
Cos. agreed Tuesday to repay $8 million to settle federal charges that it
shut down two generating units so it could charge higher market prices at
other power plants. Williams denies any wrongdoing. In total, California paid
$28 billion for electricity last year, four times the 1999 costs. Earnings
statements show profits at many energy wholesalers tripled in 2000.
Experts say the pay handed to these energy executives last year is higher
than most other major corporations are paying. But most other corporations
didn't see profits triple last year.
For instance, Ford CEO Jac Nasser, whose company owns the Irvine-based
Lincoln and Jaguar brands, collected $12.4 million last year, up 13 percent.
But Ford's 2000 earnings declined by half in 2000.
Boeing CEO Phil Condit, whose Space Division is headquartered in Seal Beach,
collected $20 million, up 342 percent. Boeing's 2000 earnings were down 8.5
percent.
"From what I can see they are paying themselves very well, although I
wouldn't say it's excessive," Crystal said of the energy companies.
But Crystal made an exception for Lay, whom he classed with a group of
executives, including Disney's Michael Eisner and Citigroup's Sanford Weill,
who have earned $100 million a year, even if their companies have performed
poorly.
Last year Eisner was paid $73 million by Disney, up 44 percent, although
earnings fell 30 percent. Citigroup, the New York financial conglomerate,
paid Weill $223 million, up 142 percent. The company's earnings rose 20
percent.
Enron's earnings were not particularly strong last year. Profits were up only
10 percent. The company attributed that to a series of write-offs, including
a $300 million loss at an Argentine water company. Excluding those one-time
charges, profits were up 32 percent, Enron said, and its stock nearly doubled
in value.
Most of the energy companies examined by The Register did better, reporting
profits, on average, up 187 percent.
Now look at the numbers reported by California's two largest utilities, who
are trapped between the high costs of wholesale energy and a Public Utilities
Commission cap on charges to ratepayers: Edison International, parent of
Southern California Edison, reported a loss of $1.9 billion. Edison cut pay
for CEO John Bryson nearly 50 percent, to $1.62 million.
PG&E, the Northern California utility, reported a loss of $3.4 billion last
year and more than halved the pay of CEO Robert D. Glynn Jr., to $944,000. "A
lot of money's been made by these (energy traders), but I wouldn't want to
suggest that there is something inherently bad about doing that,"said Ted
Craver, Edison's chief financial officer. "They have a role to play. If the
companies do well, and their executive compensation is based on stock
options, it stands to reason the executives will do well."
The Federal Energy Regulatory Commission is investigating allegations of
overcharging, and last week put price caps in place for California power
generators. But experts say that will have little effect on the profits of
firms like Williams and Enron, whose primary role is as traders.
"I think profits will continue to grow for the next year or two, as long as
markets are volatile. That's when traders do well," said Brian Youngberg, a
senior utility analyst for Edward Jones.
"It certainly looks like 2001 will be another record year for energy company
prices," agreed Paul Fremont, who follows energy stocks for Jeffries &
Company.
Free market supporters like UCLA's Cockrum and Enron's Lay say it would be
wrong to blame either energy companies or deregulation for California's high
energy prices. "What has happened in California over the past four years is
not deregulation. It is misguided regulation," Lay wrote in an opinion piece
in the San Francisco Chronicle in March.
"If done right, deregulation means choice and competition. Deregulation means
lower prices. Deregulation means innovation. California has the opportunity
now to get it right."
Those comments infuriated consumer advocates.
"It's just devastating," said Doug Heller, of the Foundation for Taxpayer and
Consumer Rights.
"It highlights the absurdity of deregulation in terms of the balance of power
between the consumer and the corporation. It's one thing to be successful in
America. It's another thing to pillage the consumers in California, and then
have the gall to come back and tell us we need to let them in for more."
10 WHO MADE MILLIONS DURING CALIFORNIA'S DEREGULATION: Pay for top executives
at many independent power companies increased last year. Here's a list of the
top-paid energy executives with business interests in California.
ENRON: Kenneth L. Lay, 58, Chairman, Enron Corp., Houston, TX 2000
compensation: $141.6 million, up 184 percent.
Jeffrey K. Skilling, 46, CEO, Enron Corp. 2000 compensation $72.6 million, up
44 percent.
Mark A. Frevert, CEO Enron Wholesale 2000 compensation: $35.8 million, up 289
percent.
CALIFORNIA CONNECTION: Enron sold natural gas and electric power in
California last year.
According to a study by the California Independent System Operator, Enron
earned excess profits of $28 million by exercising market power.
EL PASO ENERGY GROUP: William A. Wise, chairman, and CEO, El Paso Energy
Group, Houston, TX 2000 compensation: $18 million, down 62 percent
CALIFORNIA CONNECTIONS: El Paso has the largest gas transmission pipeline
serving Southern California, and was accused during a state Senate hearing
April 19 of exercising monopoly power last year that drove Southern
California gas prices 12 times higher than prices in Texas.
CALPINE: Peter Cartwright, 71, CEO, president and chairman, Calpine Corp.,
San Jose, CA. 2000 Compensation: $23.9 million, up 624 percent.
Ann B. Curtis, 50, CFO and executive vice president, Calpine Corp. 2000
Compensation: $6.85 million, up 247 percent.
Robert D. Kelly, 43, President, Calpine Finance Co. 2000 compensation: $7.12
million, up 118 percent.
CALIFORNIA CONNECTION: Calpine owns 2 percent of California's generation
capacity, including PG&E's former geothermal plants in Sonoma and Lake
counties, and is lobbying to build a new plant in San Jose.
AES: Dennis W. Bakke, 55, CEO and President, AES Corp., Arlington, VA 2000
compensation: $12.8 million, up 546 percent.
Barry J. Sharp, 41, CFO and executive vice president, AES Corp. 2000
compensation: $8.13 million, up 670 percent.
CALIFORNIA CONNECTIONS: AES owns plants in Huntington Beach and Long Beach
and currently controls 7 percent of the state's generation capacity.
AES paid a record $17 million fine last year for overpolluting from its
coastal plants.
WILLIAMS COS: Keith E. Bailey, 58, chairman, president and CEO, The Williams
Cos. Inc., Tulsa OK 2000 compensation: $7.05 million, up 346 percent.
CALIFORNIA CONNECTIONS: Williams piped natural gas to California and then
converted it into electric power through long-term contracts with AES. The
FERC has ordered Williams to justify or refund $37.6 million in alleged
overcharges in 2000 and 2001.
Williams has agreed to refund $8 million.
SOURCES: SEC filings, Register interviews, California Independent System
Operator, Federal Energy Regulatory Commission orders. Compensation includes
salary, bonuses, stock and value of shares acquired on exercise.

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


I believe it is the E-Next Generation LV Co Gen contract.  I believe the last
draft was around the beginning of April.  I can check for more specifics.

Kay

"Cobb, Chris" <chriscobb@akllp.com> on 04/19/2001 10:53:37 AM
To: <kay.mann@enron.com>
cc: "Thompson, Peter J." <pthompson@akllp.com>, <dale.ramussen@enron.com>

Subject: FW: GE and ABB comments

Dear Kay and Dale,
 Peter Thompson is on vacation and has asked me to make the
attached changes (sent to Peter by Dale).  They are very
straight-forward and will only take a minute.  However, there are a
couple of contracts to which the changes could potentially apply, and
I'd like to make sure I've got the right one before I start making
changes.  Please let me know which contract needs to be changed, and
I'll take care of the rest.  Thank you, Chris

-----Original Message-----
From: Lindo, Jacqueline E.
Sent: Wednesday, April 18, 2001 1:27 PM
To: Cobb, Chris
Subject: FW: GE and ABB comments

-----Original Message-----
From: Dale.Rasmussen@enron.com [mailto:Dale.Rasmussen@enron.com]
Sent: Tuesday, April 17, 2001 9:23 PM
To: Thompson, Peter J.; Kay.Mann@enron.com
Subject: FW: GE and ABB comments

Here's what we're hearing from our contractor.  Can you work them in,
Peter?
---------------------- Forwarded by Dale Rasmussen/HOU/ECT on 04/17/2001
06:30 PM ---------------------------

 (Embedded     Enron Capital & Trade Resources Corp.
 image moved
 to file:      From:  Don Hammond
 pic10004.pcx) 04/12/2001 10:32 AM

To:   Bill Williams/PDX/ECT@ECT, Dale Rasmussen/HOU/ECT@ECT
cc:
Subject:  FW: GE and ABB comments

I'm not sure the status of these agreements and the ability or
appropriateness to incorporate changes. But, here's he input for
consideration.
---------------------- Forwarded by Don Hammond/PDX/ECT on 04/12/2001
10:37
AM ---------------------------

  (Embedded        Enron Capital & Trade Resources
  image moved      Corp.
  to file:
  pic16337.pcx     From:  "Phillips, Bill"
  )                <BPhillips@moderncontinental.com>
                   04/11/2001 04:50 PM

To:   "'don.hammond@enron.com'" <don.hammond@enron.com>
cc:   "Sisson, Bob" <BSisson@moderncontinental.com>
Subject:  FW: GE and ABB comments

Please consider the attached comments in your final
negotiations with GE and ABB. Hopefully this format
is more user friendly than the whole pile. These are
Lauren/DHEC understanding of requirements to conform
with EPC contract.  Bill Phillips

-----Original Message-----
From: Paul Garner [mailto:pgarner@laurenec.com]
Sent: Wednesday, April 11, 2001 7:41 PM
To: Phillips, Bill
Cc: "Jack Cress"; "Kevin Hargis"; "Mike Shelton"; "Roy Milne"
Subject: GE and ABB comments

Bill,

In reviewing these documents we find that these changes were not
incorporated.  Could you please make certain they are included.

Thanks

Paul

(See attached file: ABB B-1Comments.doc)
(See attached file: GE contract comments.doc)

 - pic10004.pcx
 - pic16337.pcx
 - ABB B-1Comments.doc
 - GE contract comments.doc


---------------------- Forwarded by Peter F Keavey/HOU/ECT on 05/01/2000
03:51 PM ---------------------------

Tom Keavey <Thomas.Keavey@vistacomp.com> on 05/01/2000 08:37:56 AM
To: "'Faughnan, Mary'" <Mary.Faughnan@HARPERCOLLINS.com>, "'FOD'"
<fodonnell@kingworld.com>, "'Meredith Dixon'" <meredith_dixon@s5a.com>,
"'mkeavey@lutzandcarr.com'" <mkeavey@lutzandcarr.com>,
"'niall.keavey@emea.gateway.com'" <niall.keavey@emea.gateway.com>, "'Rafe'"
<raef12@hotmail.com>, "'Bill Russell'" <ny344@aol.com>, Peter F
Keavey/HOU/ECT@ECT, Jane Kornhaber <Jane.Kornhaber@vistacomp.com>, Susan
Ruszala <Susan.Ruszala@vistacomp.com>, Daniella Coppa
<Daniella.Coppa@vistacomp.com>, Angelo Esposito
<Angelo.Esposito@vistacomp.com>, "'Cathleen Keavey'" <c.keavey@mindspring.com>
cc:
Subject: Finally the truth comes out...

 - egmj.jpg


I need a new pipeline set up.  CES currently has 1.5 BCF of LNG storage on
this pipeline under 3 separate contracts.  All 3 contracts expire 2/29/00.

Name:   Cove Point LNG Limited Partnership
Internet Address: http://www.latec.com/covepointlng/
Curve:   Tetco M3

This deal is currently entered in Sitara under deal 142034 as CPR Storage on
CGAS.  We have withdrawals of 75,000 day from the 12th through the 31st.

Linda, would you see if you have a copy of the contracts from CES?

Please let me know what I need to do.


I'll do lunch with Sue
 -----Original Message-----
From: 	Skilling, Jeff
Sent:	Wednesday, August 01, 2001 2:26 PM
To:	Allen, Phillip K.; Bay, Frank; Beck, Sally; Berberian, David; Bergsieker, Rick; Blachman, Jeremy; 'kathleen.blakenship@enron.com'; Butts, Bob; Buy, Rick; Carter, Rebecca; 'richard.cause4y@enron.com'; Colwell, Wes; Cordes, Bill; Cumberland, Shawn; Deffner, Joseph; Delainey, David; Derrick Jr., James; Detmering, Timothy J.; Dimichele, Rich; Dodson, Keith; Donahue, Jeff; 'w.david.curan@enron.com'; Earle, Joseph; Fallon, Jim; Fastow, Andrew; Frevert, Mark; Gahn, Scott; 'kevin.garlandd@enron.com'; Glisan, Ben; Haedicke, Mark E.; Hannon, Kevin; Hayes, Robert; Hermann, Robert; Hickerson, Gary; Horton, Stanley; Humphrey, Gene; Jackson, Charlene; Kaminski, Vince J; Kean, Steven J.; Kishkill, Joe; Kitchen, Louise; Koenig, Mark; Kopper, Michael; Lavorato, John; Leff, Dan; Lindholm, Tod A.; Lowry, Paul; Martin, Amanda; McCarty, Danny; Mcclellan, George; McDonald, Rebecca; Metts, Mark; 'kristina_mourdaunt@enron.net'; Muench, Gayle; Muller, Mark; Murray, Julia; Piper, Greg; Prentice, James; Reck, Daniel; Redmond, Brian; Rice, Ken; Rieker, Paula; Sera, Sherri; Shankman, Jeffrey A.; Shapiro, Richard; Sharp, Vicki; Shelby, Rex; Sherrick, Jeffrey; Stabler, Frank; Stanley, Brian; Stram, Bruce; Taylor, Mitch; Tilney, Elizabeth; Walls Jr., Rob; Wasaff, George; Whaley, David; Whalley, Greg; Yeager, Scott
Cc:	Lay, Kenneth; Patrick, Christie; 'dgarvin@hsb.edu'; 'mroberto@hsb.edu'; 'jbower@hsb.edu'; 'llevesque@hsb.edu'; Hamed, Malak
Subject:	Please Plan to Attend

 SK - You're scheduled to have lunch w/ Sue Walden this day.
Will you still be able to do lunch w/ Sue?

PLEASE  PLAN  TO  ATTEND

"NEW  BUSINESS  CREATION"

Tuesday, August 8th
11:30-1:30
Board Room
EB50

Presented by
Harvard Business School Professor
David A. Garvin*

Professor Garvin is making this presentation as part of a five-year research partnership between HBS and Enron entitled 'Modern Giants'.  The presentation was recently delivered at the Morgan Stanley European Strategy Seminar, which included over 50 leading European CEOs. It was also presented in May at HBS as an advanced management seminar. Parts of the presentation use Enron as an example.

Rsvp by Aug 6th							*Resume attached
Christie Patrick: 3-6117

Feel free to bring your lunch; drinks will be provided


Dave has asked that a Staff Meeting be scheduled for Wednesday February 7,
2001, from 3:00 pm til 5:00 pm in 30C1.  Please mark your calendar and plan
to attend.

If you have any questions and/or conflicts, please feel free to call me (Kay
3-0643).

Thanks,

Kay


[IMAGE] Forums Discuss these points in the Forums:  Forexnews Forum       Technicals Live Charts Analysis available from: Cornelius Luca   J.P. Chorek   Technical Research Ltd.   Charts & News featuring Standard & Poor's        Interest Rates  US: Japan: Eurozone: UK: Switzerland:   1.75%  0.15%  3.25%  4.0%  1.25-2.25%        [IMAGE]   	 [IMAGE]  EUR/USD Collapses to 6-Month Low as Dollar Reins Supreme January 25, 7:00 AM: EUR/$..0.8663 $/JPY..134.34 GBP/$..1.4139 $/CHF..1.6976  EUR/USD Collapses to 6-Month Low as Dollar Reins Supreme by Jes Black  At10:00:00 AM US Dec Existing Homes (exp 5.2 mln, prev 5.21 mln)  The ice finally broke under EUR/USD this morning after tripping stop loss orders around 87.35 on its way to a 6-month low of 86.70. The euro suffered a one-two punch this week on disappointing remarks from ECB president Duisenberg which contrasted with upbeat comments by Fed Chairman Greenspan. Markets were pleased by Greenspan's admission that he believes the worst has past. But players were unenthusiastic by Duisenberg's assertion that interest rates are on hold for the time being and that Germany's rising budget deficit was a further concern. By straight-jacketing Germany, the ECB has nearly assured markets that the economy's engine of growth will continue to lag behind the rest of the Eurozone.  EUR/USD has plunged nearly 2.5% since Duisenberg's comments on Wednesday. But the break below key channel support at 87.40/50 brought about a technical decline to a new 6-month low of 86.70. Support at 86.80 must now hold to avoid targeting 86.50 on its way to 85.55 the 71.8% Fibonacci retracement of the move from 82.25 to 95.95. Temporary moves higher are not seen by the market as indicating strength, and are regarded as selling opportunities, dealers say. Follow up support is seen at  87.0 and 86.80. Resistance is viewed at 88.15, 88.60 and 89.10-- the 50% Fibonacci retracement of the move from 82.25 to 95.96.  Sterling and the Swiss franc dropped in tandem with the single currency against the dollar after breaking below support at $1.4200 and 1.6775 francs respectively. EUR/GBP was the only upside to an otherwise tragic day for the single currency as it rose to a 3-week high of 61.21. Across the board sterling weakness sent GBP/USD to a 7-week low of $1.4165 while GBP/JPY fell 1.5 yen to a day's low of 190.86. GBP/USD also suffered a technical defeat today after breaking below 1.4220/00. Support is seen at 1.4160 followed by 1.4113 which marks the 61.8% Fibonacci retracement of last years move from 1.3680 to 1.4829.  USD/CHF rose to a one-month high of 1.6937 and now faces resistance at the December 26 reaction high of 1.6945. A move beyond 1.6945, which marks the 50% Fibonacci retracement of last year's July high of 1.8221 to the September low of 1.5670, will be key for further gains in Swissy. Support is seen at 1.6880 and 1.6840.  USD/JPY also rose to a new 39-month high of 134.93 in Tokyo trade as falls in the yen have lead to asset sales by foreigners which has lead to a vicious cycle of further yen weakness. Moreover, fears that Japan's sovereign-debt rating will soon be downgraded has convinced most dealers that there is further weakness in store for JPY. Resistance is seen at 135.00 followed by 135.40 and 136.00. Support is seen at 134.50 and 133.80.  The fundamentals behind today's move reflect growing optimism about a turnaround in the US economy. Thursday's testimony by Fed Chairman Greenspan showed a rare admission of error in his previously downbeat assessment of the economy. Greenspan said that the forces restraining the US economy are diminishing and activity is beginning to firm. But he also projected that the US is close to zero GDP growth and that there will need to be signs of business investment and strong consumer demand for the recovery to gather momentum.   The only domestic economic release of note today is the National Association of Realtors' existing home sales report, which is expected to show that housing activity weakened slightly by 0.1% in December to bring the total to 5.2 mln from 5.21.  Today's earnings announcements are not as heavy as the past two days and include Ericsson LM Telephone and Lockheed Martin.     	[IMAGE] Audio Mkt. Analysis Markets Rally as Greenspan Clarifies Outlook        Articles & Ideas  ECB: One More Cut    NAM & the Strong Dollar: Phase II       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE]
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Hello Eric Saibi,

 This is an automated email delivery.  The following info is for
 tracking purposes only:

 Transaction: 0000175951
 Fulfillment: 00202135*00002
 Location   : 00004

 Industrial Information Resources, Inc.
 Customer Service Department
 (713) 783-5147

 - OUTAGE.dbf


----- Forwarded by Tana Jones/HOU/ECT on 07/12/2000 05:31 PM -----

	Tana Jones
	07/12/2000 04:59 PM

		 To: michel-finci@instinet.com
		 cc: Louise Kitchen/HOU/ECT@ECT, John Pavetto/Corp/Enron@Enron
		 Subject: Instinet Corporation Confidentiality Agreement

Please find attached a copy of the referenced Confidentiality Agreement.
Please call me at (713) 853-3399 if you have any comments or questions.  If
the agreement meets with your approval, please have an authorizied officer of
the company execute it and return the signed document to me at the fax number
below.  Thanks for your attention herewith.

Tana Jones
Paralegal
Ph:  (713) 853-3399
Fax:  (713) 646-3490


FYI

-----Original Message-----
From: infopost@duke-energy.com [mailto:infopost@duke-energy.com]
Sent: Sunday, November 25, 2001 12:00 AM
To: infopost@duke-energy.com
Subject: TE Critical System Warning

November 25, 2001

Texas Eastern Transmission, LP (Texas Eastern) notifies all customers
that, for the reasons described below, scheduled receipts into and
deliveries out of the system must match actual receipts into and
deliveries out of the system.  This system-wide warning is issued as a
result of actual receipts into the system significantly exceeding actual
deliveries.

Weather in the market area continues to be unseasonably mild and
shippers have been filling contract storage inventories in anticipation
of the coming winter heating season.  At this time, Texas Eastern?s
storage capacity is approximately 98% full.  As a result, there is
virtually no storage capacity or linepack available for system
operational purposes and Texas Eastern cannot continue to absorb actual
imbalances left on the system.

Because of the critical nature of this situation and the fact that Texas
Eastern no longer has the ability to further absorb imbalances being
left on the system, Texas Eastern requests that all customers coordinate
with their suppliers the actual quantities received into the system to
match actual customer takes in the market area.

If immediate action does not result in reducing the current volume of
gas being left on the system, Texas Eastern may be forced to issue an
operational flow order (OFO) requiring actual receipts of gas to match
actual deliveries out of the system, which will be subject to the OFO
non-compliance penalty of $25 per dekatherm.  In addition and as
provided for in Texas Easterns FERC Gas Tariff, Texas Eastern will take
any other actions as may be necessary to protect the integrity of its
system, including, but not limited to, suspension of OBA's.

*******************************************************************

NOTE:

Duke Energy Gas Transmission respects your online time and privacy.
You have received this email because you elected to subscribe. To
unsubscribe, login to the E-mail Notification Subscription page at
http://www.link.duke-energy.com/script2/Notification.asp
uncheck the appropriate checkbox, and click the Submit button.


Operations is digging out 2000 feet of pipe to begin the hydro test today or
thursday.  If the test results are good, they'll recoat the pipe and put it
back in service.  We could be at 80% volume on Friday afternoon, but this is
tentative.

Also, the smart pig test run several months ago identified 4 potential areas
that need inspections west of station 5.  While east of thoreau is down,
these 4 areas will also be inspected.

Do not pass this info onto customers at this point till we have further
information.  We will make a posting hopefully this afternoon.  Operations is
also trying to combine some additional compressor work to this outage (i.e.
grouting another unit and replacing some valves).  This work will limit our
west deliveries to 875,000.  This notice will also be posted shortly.

see me if you have questions
KH


see page 12.

Helpful health tips.


Today, Enron hosted a conference call to give investors a current overview of the company. Here's an update of what we discussed during the call.

We told investors that we're doing everything we can to protect their interests and to regain their confidence. Our focus remains on our credit quality, balance sheet and liquidity, which are essential for our continued success and expansion of our wholesale businesses.

It took more than a few weeks to get where we are today. Here's a snapshot of significant events that led to our current situation:

-- In hindsight, we definitely made some very bad investments in our non-core businesses over the past several years. Those include investments in Azurix, India and Brazil. They have performed far worse that we could have ever imagined when we made these investments;

-- Because of these bad investments, we've become over-leveraged as a company. The negative impact of those investments was exacerbated through the extensive use of debt capital both on and off our balance sheet;

-- We also entered into related party transactions that led to a loss of investor confidence, which has been very damaging;

-- We've been criticized for our lack of transparency and our hard-to-understand financial and operating disclosures; and

-- On top of it all, we discovered errors in our financial statements, as discussed in our 8-K filing last week, that required a restatement of previously reported earnings.

We've taken a new look at our businesses and have separated them into three areas: core businesses, non-core businesses, and businesses under review.

Core Businesses

Our core businesses remain strong and consistent sources of significant earnings and cash flows for the company. They're our competitive advantage. These include:

-- Natural gas pipeline businesses;

-- Gas and power businesses in North America and Europe;

-- Retail businesses in North America and Europe; and

-- Coal businesses in North America and Europe.

The events of the past few weeks have had a temporary negative impact on our projected fourth quarter profitability. It's too early to tell at this time what impact this might have on our operating results. We are considering these actions now so that we can quickly return to normal business in 2002.

I also remain optimistic that the actions we've taken over the past couple of weeks have addressed our customer and counterparty credit and liquidity concerns. According to our business unit leaders, we have definitely seen improvement in our counterparty relationships.

Non-Core Businesses

Our non-core businesses include our global assets group and our broadband division. We have invested more than $8 billion in these businesses, and the return from them has been dismal.

We have an aggressive program in place to exit these businesses and expect that the sale of these businesses will generate billions of dollars in cash that we can use to repay debt and reinvest in our core businesses. We already have more than $800 million in assets contracted for sale this year. They include CEG Rio, a gas LDC in Brazil; EcoElectrica, a power plant and LNG receiving terminal in Puerto Rico; and asset sales of offshore oil and gas properties in India. The approximately $2.9 billion Portland General sale is also on target to close in late 2002 pending regulatory approvals.

Businesses Under Review

These businesses are comprised of those operations outside our power and gas wholesale businesses and include global and industrial markets. While several of these businesses have very strong future prospects, we need to determine if their capital requirements and near-term growth prospects are sufficient enough in terms of earnings and cash generation.

Reviewing our businesses this way will help determine where we need to make reductions to our work force. More information will follow as soon as it becomes available.

Credit Rating/10-Q Filing

We continue to meet regularly with credit rating agencies and believe that our liquidity enhancements and scheduled asset sales will strengthen our balance sheet and maintain our investment grade credit rating. Our current credit ratings by the three major rating agencies are as follows:

-- Moody's at Baa3       "Under Review for Further Downgrade"

-- Fitch at BBB-             "Evolving Status"

-- S&P at BBB-              "CreditWatch Negative"

We also discussed our existing financial vehicles, including Osprey, Marlin and Yosemite, in further detail. We told investors that we will file our 10-Q five days late due to our current activities. It will be filed on Nov. 19.

We will continue to have updates with investors over the coming weeks as well as our frequent updates with you. The full transcript of our conference call will be filed with the Securities and Exchange Commission in the next few days. It will also be posted on our web site at www.enron.com/corp/investors under "SEC Filings."

In connection with the proposed transactions, Dynegy and Enron will file a joint proxy statement/prospectus with the Securities and Exchange Commission. Investors and security holders are urged to carefully read the joint proxy statement/prospectus regarding the proposed transactions when it becomes available, because it will contain important information. Investors and security holders may obtain a free copy of the joint proxy statement/prospectus (when it is available) and other documents containing information about Dynegy and Enron, without charge, at the SEC's web site at www.sec.gov. Copies of the joint proxy statement/prospectus and the SEC filings that will be incorporated by reference in the joint proxy statement/prospectus may also be obtained for free by directing a request to either: Investor Relations, Dynegy Inc., 1000 Louisiana, Suite 5800, Houston, TX 77002, Phone: (713) 507-6466, Fax: (713) 767-6652; or Investor Relations, Enron Corp., Enron Building, 1400 Smith Street, Houston, TX 77002, Phone: (713) 853-3956, Fax: (713) 646-3302.

In addition, the identity of the persons who, under SEC rules, may be considered "participants in the solicitation" of Dynegy and Enron shareholders in connection with the proposed transactions, and any description of their direct or indirect interests, by security holdings or otherwise, are available in an SEC filing under Schedule 14A made by each of Dynegy and Enron.


Please send the file after you are done. If there is a big problem (ie it
doesn't agree with mine within 50), please call me at home (403) 245-1668.

Thanks,
Ryan


To register your Palm Computing
 organizer electronically, you must have an
Internet connection or a modem connected to your computer.

Or if you prefer, you can fill out and send the mail-in registration card
included in your Palm Computing package.

Special rewards only for registered users:

-FREE software programs *
-FREE technical support **
-Upgrade information
-Important updates

* For a complete list of free software, go to www.palm.com/eregdownload
** Subject to change without notice
Assigned to: CN=Cara Semperger/OU=PDX/O=ECT
Updated by: CN=Cara Semperger/OU=PDX/O=ECT


Melissa,

It would help us considerably if Vance would include the prices for new deals
in the monthly nom.  In order to manage our postion and schedule the gas, we
need to put the deals into Sitara.  We will enter spot deals with the info
Vance gives us.  When the deals are ticketed, the risk group will adjust
Sitara with the finalized terms.

Thanks for your help.

D

	Enron North America Corp.

	From:  Melissa Graves                           09/28/2000 04:46 PM

To: Daren J Farmer/HOU/ECT@ECT
cc: Vance L Taylor/HOU/ECT@ECT, Susan Smith/HOU/ECT@ECT, Donald P
Reinhardt/HOU/ECT@ECT
Subject: Expected Volumes for October

Daren,

Per our phone conversation, please find the following information:

Camden Resources Inc., Driscoll Ranch #1, meter 9858, price:  HSC less $0.10
North Central Oil Corporation, McMurrey-Talbert #2, meter 5228, price:  HSC
less $0.14
KCS, Dickenson, meter 9797 - Susan Smith will be preparing a formal ticket
for the Buy and the Sell for the month of October.  We will be watching the
gas specs on this package, and if all goes well, we will book the rest of the
term at the end of October.

On a go forward basis, for gas that we provide in the monthly nomination that
we know is not ticketed, can Vance just include the price in the comments
field on each package to help you estimate for bid-week?  Let us know if this
information will be helpful in the future.

Thank you,
Melissa


If you look at the attached list we are due to make a lot of these dates in
the next two weeks.  The biggest problem in Europe is probably that Edmund is
obviously out of the office and there are no dates even for his.

These delays are causing chicken and egg problems with the metals customers.
We can't mail if there are no pas etc.  The big metals roll-out is in London
first week in October so we do need them by then,

If there are re-prioritisation issues please contact Bruce Garner who needs
them for that week.

Please let me know.

Thanks

Louise

Leonardo Pacheco@ENRON
15/09/2000 11:46
To: Louise Kitchen/HOU/ECT@ECT, David Forster/Corp/Enron@Enron, Bob
Shults/HOU/ECT@ECT
cc: Savita Puthigai/NA/Enron@Enron, Carlos Alatorre/NA/Enron@Enron, Naveed
Ahmed/NA/Enron@Enron, Justin Rostant/HOU/ECT@ECT, Julie Ferrara/HOU/ECT@ECT,
Amita Gosalia/LON/ECT@ECT, Dale Neuner/HOU/ECT@ECT

Subject: EnronOnline New Markets/Products Weekly Update 9/8/00

Attached please find the latest version  of the New Markets/Products Report.
The report is updated every week.

Let me know if you have any questions

Thank you!

Leonardo Pacheco


In addition, though we are still attempting to confirm, it appears that no windfall profits tax bills will make it through the Legislature.  Will report back as soon as we know one way or the other.

Best,
Jeff

 -----Original Message-----
From: 	Mara, Susan
Sent:	Wednesday, September 12, 2001 5:10 PM
To:	Kean, Steven J.; Kingerski, Harry; Belden, Tim; Sharp, Vicki; Blachman, Jeremy; Comnes, Alan; Tribolet, Michael; Walsh, Kristin; Delainey, David; Leff, Dan; Frazier, Lamar; Keeney, Kevin; Blachman, Jeremy; Gahn, Scott; Belden, Tim; Swain, Steve; Lavorato, John; Kaufman, Paul; Steffes, James D.; Calger, Christopher F.; Mara, Susan; Black, Don; Richter, Jeff; Kitchen, Louise; Dietrich, Janet; Mara, Susan; Robertson, Linda; Kingerski, Harry; Denne, Karen; Palmer, Mark A. (PR); Shapiro, Richard; Curry, Wanda; Mellencamp, Lisa; Dasovich, Jeff; Riley, Tom
Subject:	ALERT-- CPUC VOTE DELAYED AGAIN!!!

	Our best information is that the CPUC will NOT VOTE on direct access tomorrow, but will continue the meeting to another date and time.  Will let you know when we know the new date for the meeting.


Torrey:

I am the lawyer in ECT legal responsible for our relationship with the NYMEX
and monitoring our compliance with NYMEX position limits.  Phillipe Travis
tells me you may be able to help him in preparing the reports of our
positions with the option delta factored in.  Thanks very much for your
assistance.

Mark


---------------------- Forwarded by Eric Bass/HOU/ECT on 09/21/2000 02:02 PM
---------------------------

"Michael Ballases" <mballases@hotmail.com> on 09/21/2000 01:53:39 PM
To: stormtrooper@fireman.net, ezra@airmail.net, bhoskins@hotmail.com,
claydo40@hotmail.com, douglo@hotmail.com, ebass@enron.com,
gfortunov@hotmail.com, gordomcc@rocketmail.com, hcampos@enron.com,
Jason.Bass2@compaq.com, lhunsmi@hotmail.com, Lenine.Jeganathan@enron.com,
shelleyzee@mail.utexas.edu, simpson_molly@hotmail.com, psamarti@austinc.edu,
rz411@hotmail.com, westont@swbell.net
cc:
Subject: Fwd: Football season is here.....this one is terrible, nonetheless,
it is funny - GIG 'EM AGGIES!!

GO HORNS!!!!!!!!!!!

Subject:  Football season is here.....this one is terrible, nonetheless, it
is
       funny

 >Good one!
 >
 >>A Longhorn fan used to amuse himself by scaring
 >>every A & M fan he would
 >>see strutting down the side of the road in their
 >>obnoxious burgandy and white
 >>colors.
 >>
 >>He would swerve his van as if to hit them, and
 >>then he would swerve back
 >>on the road just before hitting them.
 >>
 >>One day, as the van driver was driving along, he
 >>saw a priest. He thought
 >>he would do a good deed and pulled the van over.
 >>He asked the priest,
 >>"Where are you going, Father?"
 >>
 >>"I'm going to give Mass at St. Patrick's Church,
 >>about five miles down the road," replied the priest.
 >>
 >>"No problem, Father! I'll give you a lift. Climb
 >>in!"  The priest climbed
 >>into the passenger seat, and the van continued
 >>down the road.
 >>
 >>Suddenly, the driver saw a A & M fan strutting
 >>down the road, and
 >>instinctively, he swerved as if to hit him. But,
 >>as usual, just in time,
 >>he swerved back to the road, narrowly missing the guy.
 >>
 >>Even though he was certain he missed the guy, he
 >>still heard a loud
 >>"THUD." Not understanding where the noise came
 >>from,  he glanced in his mirrors,
 >>but he didn't see anything.
 >>
 >>He then remembered the priest, and he turned  to
 >>the priest and said, "I'm
 >>sorry, Father. I almost hit that Aggie fan."
 >>
 >>"That's OK," replied the priest. "I got
 >>  him with the door."
 >>
 >>FOOTBALL SEASON'S HERE!  AND SO IT BEGINS.........
 >>GO LONGHORNS!
 >>
 >
 >_________________________________________________________________________
 >Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.
 >
 >Share information about yourself, create your own public profile at
 >http://profiles.msn.com.
 >
 >

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

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


Dear Alan,

As per below, Caroline is going to send off a blank contract this afternoon to Yoshimi.

I have only one concern and it relates to the Jim Derrick and Mark Haedicke approval - condition subsequent to the contract.

If we get the go ahead from Mike McConnell and Jeff Shankman by Friday, and if Yoshimi accepts our offer and signs the contract and rejects Cargill's offer, is it possible that Jim and Mark, in making their determination, would take into consideration any issues beyond her personally I wonder?

What I am trying to get a feel for (and I am not meaning to be rude or insulting) is, is it possible in your view that management could see this as another way of getting out of the contract with Yoshimi if bad turns to worse for the company.  The thing is that I know she is ready to take Cargill's offer.  If she rejects them, having accepted our offer and then Jim / Mark turn her down because of big picture stuff, this would be very unfortunate for her.

Please don't misunderstand my question, I know that Jim / Mark don't tend to turn people down at all after they have been through the recruitment process, but the company is at the same time facing an unprecedented set of circumstances so it is worth checking this I think.

Thanks.

Jane

 Original Message-----
From: McBride, Jane
Sent: 06 November 2001 13:25
To: Schaeffer, Caroline
Cc: Hirl, Joseph
Subject: RE: Tomizawa

Hi Caroline,

Have discussed this with Joe.

He wants you to send Yoshimi a draft contract without figures and have you give her the figures we are proposing over the phone as soon as possible.

Would be great if we could do this today.

We will think about the EP thing again tomorrow after we see where we are.

Thanks.

Jane

  ----

 -Original Message-----
From: Hirl, Joseph
Sent: 06 November 2001 11:07
To: McBride, Jane
Cc: Schaeffer, Caroline
Subject: Tomizawa

Word from Shankman is that they can give us a firm answer their Thursday (our Friday).  This is the best I can do at this point.  I'd suggest making sure that all is ready.

Joe