---------------------- Forwarded by Carla Hoffman/PDX/ECT on 12/21/2000 09:30
AM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Pergher, Gunther" <Gunther.Pergher@dowjones.com>
     12/21/2000 07:40 AM

To: undisclosed-recipients:;
cc:
Subject: DJ Selling Power May Be Attractive To Pulp, Paper Mills

15:09 GMT 21 December 2000 =DJ Selling Power May Be Attractive To Pulp,
Paper Mills
By Zahida Hafeez
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)--As power prices skyrocket in the Pacific northwest, and
forest products markets soften, some pulp and paper producers could consider
turning into power vendors, taking downtime and instead reselling energy
into the open market.
At least in theory, many analysts believe that switching to selling power
can be a more profitable enterprise for pulp and paper mills, as it has been
for some aluminum mills.
Nationwide, pulp and paper makers generate roughly 55% of their energy,
while 45% is purchased from outside sources, in some cases through fixed
pricing arrangements.
And some even generate power enough to compete with public utilities for
rank. The world's largest newsprint maker, Abitibi-Consolidated Inc. (ABY),
which ranks as the third-largest generator of power in the Canadian
northwest region, self-generates 35% of its energy needs.
Of course, not all companies could switch. Firstly, not all co-generate a
significant amount of their energy needs, and those that do need to keep
running their operations side-by-side. Secondly, the fixed-rate contracts
with public utilities bar customers from reselling power. And lastly, energy
sale is strictly regulated in many parts of the U.S. and Canada, and hence
not very profitable.
Mills which could profit from selling energy are those with fixed pricing
arrangements for natural gas and electricity. They could take downtime while
reselling their energy at a higher price. Alternatively, they could adjust
operations to run machines during non-peak hours, while selling electricity
during the peak hours.
Meanwhile, mills that have onsite hydroelectric power generators, such as
Abitibi and Pacifica Papers Inc. (T.PPP), can easily sell surplus energy or
even close down operations and sell energy instead.
With wholesale power prices for day-ahead delivery hovering in the mid-$400s
a megawatt hour in the Pacific northwest region, and hitting $3000 a
megawatt hour just two weeks ago on speculation that extremely cold weather
would boost demand to where it would exhaust supply, it might not be a bad
plan to consider shutting down.
Newsprint Makers Could Double Profits
Rob Duncan, analyst with Research Capital Corp. in Toronto, estimates that
those paper companies, which are now making a profit of $150 to $200 per ton
of newsprint, for instance, could double their profits. They could be making
a profit of $300 a ton of newsprint capacity closed if they were to sell
electricity even at a rate of $250 a megawatt hour.
Nevertheless, Duncan added, "My feeling is that companies haven't thought
this through yet."
Indeed, most companies are in the process of evaluating whether or not
energy selling would suit their long-term goals and allow them to meet
customer needs, including Abitibi, Bowater Inc. (BOW), Weyerhaeuser Co. (WY)
and Domtar Inc. (DTC).
Most producers interviewed by the Dow Jones Newswires declined to say how
much power they generated.
"We're examining all of our alternatives at this point, and first and
foremost, whether it makes sense to make paper at current energy rates or
more sense to shut down," said Abitibi's spokesman John Chimienti, adding,
"but at this point there (aren't) imminent (closures)."
The alternatives the company is considering now extend to deals with the
respective public utilities to participate in some kind of load-shedding
plan, or shutting down in the winter months for better rates in the future,
Chimienti said.
Abitibi has resold some of its purchased energy in the past, but never its
hydroelectric power, with most of its mills which are self-sufficient being
located in regulated power markets, officials said.
During this summer's energy price spike, Abitibi closed for a day or two a
mill in Augusta, Georgia, and resold its contracted power, according to
Michael Innes, vice president of energy and environment at Abitibi.
Reselling power seemed like a more profitable prospect at the mill, which
has the capability to produce 440,000 tons of newsprint annually, Innes
said.
As to whether the company could do it again, Innes said, "We've never done
it in the winter, but that doesn't mean we can't ever do it."
Paul Ehinger, an independent analyst based in Medford, Ore., said several
plywood plants in the Northwest region, which purchase natural gas at
previously fixed lower rates have closed down and are reselling natural gas
at a higher price than they paid.
U.S. natural gas prices on the benchmark New York Mercantile Exchange have
soared steadily since mid-February from around $3.00 per million British
thermal units to an all-time high near $10 this month - four times 1999
levels.
"The markets are poor, and if you can make more money by shutting down
operations and reselling natural gas bought at a firm price, you should do
it," Ehinger said.
However, the practice remains largely restricted.
"We haven't seriously considered this concept...but it would depend on
whether the cost of power keeps rising," said Bob Boschee, mill manager for
Smurfit-Stone Container Corp.'s (SSCC) mill in Missoula, Mont., which is
currently running at only 50% operating rate on electricity bought at fixed
rates from Enron Corp. (ENE). "Everything becomes a consideration if power
sells for $3000 (a megawatt hour) as it did a week or two ago. I'm sure
everybody thought of shutting down then," he said.
-By Zahida Hafeez, Dow Jones Newswires;
312-750-4132; zahida.hafeez@dowjones.com
(END) Dow Jones Newswires 21-12-00
1509GMT Copyright (c) 2000, Dow Jones & Company Inc

G_nther A. Pergher
Senior Analyst
Dow Jones & Company Inc.
Tel.  609.520.7067
Fax. 609.452.3531

The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
material.  Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you received
this in error, please contact the sender and delete the material from any
computer.


Unfortunately, I already have a meeting from 11 to 1 Houston time.  I'm free
from 9:45 to 11 and then after 1.

Tracy Foy
07/19/99 06:44 AM
To: Mark - ECT Legal Taylor/HOU/ECT@ECT
cc:
Subject: Online Trading conference call today.

Are you available for a conference call today - 11am your time (5pm UK time)

Attending:  Scott Sefton
   Louise Kitchen
   Justin Boyd
   Elena Kapralova
   Edmund Cooper

Clifford Chance Andrew Wilkinson
   Tim Hughes

"Sorry for short notice"

Kind regards.

Tracy Foy - 970 7374


ENA  sent execution copies of the ISDA to Kellogg Company on April 10.  By
copy of this email, I ask that you touch base with Tana Jones in Houston who
will verify the status of ENA's ISDA with Kellogg Company and send you copies
of our documents for use in your negotiations.  Let  me know if you have any
questions.  Sara

Deepak Sitlani
05/02/2000 06:55 AM
To: Sara Shackleton/HOU/ECT@ECT
cc: Martin Holmes/LON/ECT@ECT, Paul Radous/Corp/Enron@ENRON, Edmund
Cooper/LON/ECT@ECT, Michael Khajeh-Noori/LON/ECT@ECT
Subject: Kellogg's

Sara

Paul Radous asked me to get in touch with you in connection with a proposed
ISDA Master Agreement with Kellog Supply Services (Europe) Limited.  I should
be grateful if you would send me by e-mail all documents relating to the ISDA
recently executed between ENA and Kellog's as Paul would like us to use
similar provisions.

In passing, I should point out that both I and my colleague, Michael
Khajeh-Noori, will be dealing with this matter.  I am in the office on
Mondays and Tuesdays and Michael is in the office on Thursdays and Fridays.
I should therefore be grateful if you would address any e-mails to both of us
(we can both be contacted on the same extension: 34539).

If you have any questions, please let me know.

With kind regards

Deepak

Paul: will you be preparing a credit worksheet for this entity?
---------------------- Forwarded by Deepak Sitlani/LON/ECT on 02/05/2000
12:37 ---------------------------

Edmund Cooper
25/04/2000 16:41
To: Deepak Sitlani/LON/ECT@ECT, Michael Khajehnoori/LON/ECT@ECT
cc:

Subject: Kellogg's

FYI
---------------------- Forwarded by Edmund Cooper/LON/ECT on 04/25/2000 04:42
PM ---------------------------

Martin Holmes
04/25/2000 04:26 PM
To: Paul Radous/Corp/Enron@ENRON
cc: Edmund Cooper/LON/ECT@ECT

Subject: Kellogg's

Paul

We have recently concluded an ISDA with The Kellogg  Company in the USA. Now
their European entity, Kellogg Supply Services (Europe) Limited of The
Kellogg Building, Talbot Road, Manchester M19 0PU, UK, would like to see an
ISDA Mastera and Schedule.

Can you look at this entity from a credit point of view please? I do not have
separate financials for them, but if you need them will ask for a latest set.

Thanks

Martin Holmes

PS
Did you get the Sappi International financials? And have you made any
progress with Rottneros?

Thanks

MH

London x 5357


Just wanted to compliment Tom Moran, Bill Bradford and Debbie Brackett for
all their efforts to help our commercial initiatives. As busy as they always
are they are a pleasure to deal with and usually supportive of our
transactions if the deal deserves their attention.


Start Date: 12/27/01; HourAhead hour: 23;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001122723.txt


Please see the following articles:

GOVERNOR DAVIS SENDS LETTER TO SECRETARY OF ENERGY ABRAHAM
2/26/2001, www.governor.ca.gov

Pacific Gas & Electric Co. Makes Partial Payments to Suppliers
3/1/2001, bloomberg.net

Governor Davis Comes to Wall Street
3/1/2001,Merrill Lynch report

Energy Deal May Take a Month, Davis Tells Analysts

3/1/2001, LA Times

PUC chief says summer outages not inevitable
3/1/2001, Sac Bee

Dan Walters: Why has probe stopped short?
3/1/2001, Sac Bee

					PG&E's gas rates to ease in March
3/1/2001, Sac Bee

Davis optimistic about fed approval for power line deal
2/28/2001, San Diego Union Tribune

Partial Power Payments / Governor asks that generators take less
3/1/2001 SF Chronicle

PG&E May Be Ready To Deal / Lawyers to advise it on selling lines
3/1/2001 SF Chronicle

Generating Ideas / Deregulation, done right this time -- not state control --
is the answer to Calfiornia's energy woes
3/1/2001, SF Chronicle (editorial)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------
GOVERNOR GRAY DAVIS SENDS LETTER TO SECRETARY OF ENERGY ABRAHAM
2/28/1 15:25 (New York)

(The Following is a reproduction of a press release from The State of
California. This document was obtained from www.governor.ca.gov.)

GOVERNOR DAVIS SENDS LETTER TO SECRETARY OF ENERGY ABRAHAM

February 26, 2001

The Honorable Spencer Abraham
Secretary, U.S. Department of Energy
1000 Independence Avenue, SW
Washington, D.C. 20585

Re: Update on California's Energy Efforts

Dear Secretary Abraham:

The purpose of this letter is to update you on California's significant energy
conservation and efficiency efforts, as well as our generation development
initiatives.

Energy Conservation and Efficiency

Estimates by the California Energy Commission indicate that the State as a
whole
used approximately 2,000 fewer megawatts in January 2001 than might have been
expected, absent conservation and efficiency efforts. As you know, since
January, we have implemented the following major initiatives:

Directing more than $800 million for programs to improve conservation and
efficiency.

Implementing aggressive conservation measures in state buildings, resulting in
about 200 MW of savings during energy emergencies.

Developing a comprehensive outreach and education campaign to reach
businesses,
organizations, and millions of California consumers.

Partnering with other governmental entities, including school districts to
ensure that all 475 cities, 58 counties, and 8,300 schools in California
reduce
consumption.

Adopting the strongest energy efficiency standards in the world for
residential
and non-residential buildings and appliances.

Incorporating energy efficient, sustainable building designs in new state
building projects.

Issuing 13 Governor's Executive Orders on energy.

Additional State Conservation Outreach Efforts

The State Department of Consumer Affairs has launched the first stage of a $20
million paid media campaign to encourage California's consumers and businesses
to conserve energy and become more energy efficient. The first three
commercials
have run in all 12 major metropolitan markets, the most recent of which
encourages consumers to turn down their thermostats.
We are coordinating our conservation efforts with many businesses and business
associations. For example, Safeway agreed to print an energy conservation
message on its supermarket grocery bags. In addition, it will place an energy
conservation message in its weekly advertisement insert, which reaches 11
million households in every major California newspaper each week. Safeway also
has offered to donate 10 to 15 seconds on its advertising buys for the state
energy conservation message. In addition, McDonald's is placing four million
tray liners with the energy conservation message in its 1,100 restaurants
throughout the State.

The Department of Motor Vehicles (DMV) puts conservation and efficiency
messages
on Vehicle Registration and Driver's License Application and Renewal
envelopes.
DMV envelopes are expected to the reach 19.6 million vehicle owners and eight
million drivers who apply for or renew licenses this year.
The approaching tax season has enabled the Franchise Tax Board (FTB) to reach
nearly 300,000 Californians a week with the energy message. This past week
alone, FTB included an energy insert in nearly 24,000 Return Information
Notices, reached 71,000 visitors to the FTB home page, which features the
energy
conservation message, and played a recorded energy conservation message for
nearly 193,000 taxpayers who used the FTB call center.

The California Lottery Commission is placing conservation messages on certain
game tickets and on 7,000 television monitors in stores throughout the State.
The Department of Consumer Affairs, the Franchise Tax Board, California Energy
Commission, and other agencies play energy conservation information during on-
hold telephone messages.

The Department of Consumer Affairs reached an estimated 2.5 million
Californians
with the energy conservation and efficiency message during Consumer Protection
Week through public appearances, media interviews, handouts, and letters.

The Governor's Office of Planning and Research has worked with your Department
of Energy to get the conservation message to all federal employees and
facilities in California. These communications will reach as many as 265,000
civilian employees and 100,000 military personnel in California. Distribution
is
provided by the Department of Energy's Seattle Regional Office to key facility
managers and other federal offices throughout the state.

Every state agency website features the state's "Flex Your Power" logo and
energy conservation message. For example, the Energy Commission's home page
features in-depth conservation and efficiency information and receives 3
million
hits a month. The Energy Commission also has established an 800 number and web
form to handle consumer conservation ideas and inventions. This allows people
to
make suggestions directly to government.

Articles on energy conservation have been placed in trade publications and
newsletters, such as the Employment Development Department's California
Employer, which reached some 900,000 employers, and the CalPERS PERSpectives,
which reached one million subscribers.

The Technology, Trade, and Commerce Agency e-mailed and broadcast faxed an
energy conservation letter to approximately 97,000 businesses, associations,
and
partners.

The California Science Center, a state museum in Los Angeles that has 1.3
million visitors a year, including 800,000 children, is providing conservation
tips in English and Spanish to all visitors.

Two weeks ago, I issued an Executive Order that requires retail
establishments,
particularly shopping malls, gas stations, auto dealerships, and other
commercial properties, to reduce unnecessary outdoor lighting during non-
business hours. The Executive Order is directed at the large banks of
decorative
and marketing illumination that often stay on all night and do not serve a
public safety function.

Quantifying Impact of Outreach Efforts

The State and Consumer Services Agency is working with the Electricity
Oversight
Board, the California Energy Commission, the Department of General Services,
and
cabinet agencies to attempt to quantify the impact of our outreach efforts on
energy efficiency and conservation. Preliminary estimates for January 2001
indicate that the State experienced an overall reduction of approximately
2,000
megawatts from what the State's overall anticipated load should have been,
absent recent conservation and efficiency efforts. This estimate measured
overall impact by comparing monthly peak load data against data from the same
month one year earlier, while adjusting for projected load growth from last
year
to this year, significant changes in weather conditions, and other factors.

In addition, we are attempting to measure the overall impact of state agency
conservation efforts by gathering monthly utility bills of state buildings and
facilities and comparing them to the same month in 2000. Some preliminary
highlights include:

The DGS Telecommunications headquarters at 601 Sequoia Pacific Blvd.
(Sacramento) consumed 20.5% less kilowatt hours of electricity in January 2001
when compared with data from January 2000.

The Office of State Publishing facility at 344 N. 7th Street (Sacramento)
consumed 26.6% less kilowatt hours of electricity in January 2001 when
compared
with data from January 2000.

Caltrans indicated that the electricity bill for its Sacramento headquarters
went down 23.8% last month, compared with January 2000.
The Department of Housing and Community Development reports a 40.5% reduction
in
energy usage at its Sacramento headquarters building.

Generation Development Initiatives

Objective: 5,000 MW on line by July, and 20,000 MW by 2004.

Since August 2000, I have issued a series of Executive Orders and signed
urgency
legislation that created:

Fast-track licensing procedures for environmentally-preferred facilities; some
plants will be licensed in as little as 21 days

A State Air Emissions offset bank so fast track plants can obtain air permits
up
front.

Ability to increase power production at existing facilities and to allow
construction of plants 24/7.

ISO outage scheduling tools so shut downs occur while system reliability is
maintained

Intergovernmental "Green Team" strike force to cut red tape at federal, state
and local levels.

Performance awards for plants that accelerate construction and come on-line
before July, 2001.

I have requested that President Bush direct federal agencies to expedite
federal
permit reviews for power projects; President Bush granted this request.

I have written Chairman Hebert to urge the FERC to further extend the waiver
of
certain operating and efficiency restrictions on qualifying facilities from
April 30, 2001 until October 15, 2001; California awaits the Chairman's
response.

I anticipate that by July, 2001, these measures will result in the addition of
1,320 MW from three large power plants, a 320 MW plant licensed under
expedited
permitting procedure in December, 2000, up to 2,400 MW of "peaking" power
projects, up to 1,266 MW by restarting or expanding production at existing
thermal and renewable power projects - some of this production depends upon
the
FERC's response to my request, and 145 MW of wind, biomass and other renewable
energy projects receiving California financial incentives

California remains committed to achieving a significant reduction in energy
consumption and to an aggressive program to develop generation for this summer
and beyond.

Best regards,

Gray Davis
Governor

(bh) PN
-0- (CRL) Feb/28/2001 20:25 GMT
------------------------------------------------------------------------------
------------------------------------------------------------------------------
----
Pacific Gas & Electric Co. Makes Partial Payments to Suppliers
3/1/1 9:32 (New York)

Pacific Gas & Electric Co. Makes Partial Payments to Suppliers

     (For more on the California power crisis, see {EXTRA <GO>})

     New York, March 1 (Bloomberg) -- Pacific Gas & Electric Co.,
California's largest investor-owned utility, will make partial
payments of $228 million instead of $1.442 billion to its
suppliers, a filing with the Securities and Exchange Commission
said.
     Kent Harvey, a senior vice president and chief financial
officer at the utility, told investors in a Feb. 1 conference call
that the utility was paying power suppliers 15 percent of invoices
received. The company would rather ``make partial payments than no
payments at all, to keep electricity flowing to customers,'' he
said.
     The cash-strapped utility, which has defaulted on more than
$731 million of commercial paper since Jan. 17, is conserving
money in order to stave off filing for bankruptcy protection.
     Pacific Gas & Electric paid soaring wholesale energy prices
since last summer, which California regulators prohibited it from
passing on to customers. The utility accumulated $6.6 billion of
debt through the end of 2000 for such power purchases. The filing
didn't update the undercollections through January.
     Edison International's Southern California Edison, the
state's No. 2 utility, has said its unreimbursed costs were $5.47
billion through January 31. Sempra Energy's totaled $605 million.

                        Some Power Payments

     Pacific Gas and Electric's filing said it is making partial
payments for January power deliveries from certain suppliers,
known as qualifying facilities, and for December deliveries from
the California Independent System Operator, which oversees about
75 percent of the state's transmission grid.
     As of Jan. 16, the utility had drawn $938 million of a $1
billion credit line. On Jan. 17, banks refused to lend the utility
additional money causing it to default on maturing commercial
paper. The utility and its parent, PG&E Corp., have been shut out
of the commercial paper markets and unable to raise money from
sources other than banks since late December.
     Pacific Gas & Electric has an additional $142 million of
commercial paper maturing by the end of this month, according to
an audit ordered by the California Public Utilities Commission. It
recently had $1 billion of cash reserves, based on a Feb. 14 SEC
filing.
     California Governor Gray Davis has proposed buying the
utilities' transmission systems as part of a broader plan,
including buying power on their behalf, to help PG&E and Edison
avoid bankruptcy.

--Liz Goldenberg in the New York newsroom at (212) 893-3940 or at
egoldenberg2@bloomberg.net and Dennis Walters in Ojai, California,
through the New York newsroom (212) 318-2300 /jm

Story illustration: For more information on electricity markets
and prices, type {VOLT <GO>}.
------------------------------------------------------------------------------
--------------------------------------------------------------
Governor Davis Comes to Wall Street
3/1/1 9:47 (New York)

                      M E R R I L L  L Y N C H        Research Bulletin
  Fixed Income Research                               Reference Number
10906001
  United States                                       Mar/01/2001 09:47
  Leo J. Kelser                                       (1) 212 449-7803

Highlights of This Issue

Governor Gray Davis of California met with a group of sell-side and rating
agency analysts in New York yesterday.  The Governor outlined his plan for
restoring the utilities to financial viability so that they can meet their
obligations.  Below we summarize a few highlights from the meeting.

Trying to Fit Solution Within Existing Rate Structure

The Governor talked about the need to find a solution to the utilities'
problems within the context of their existing rate structures. He indicated
that the temporary 9% rate hike from January 2000 would be made permanent and
that a 10% rate reduction that went into effect in January 1998 would be
reversed in March 2002.

Status of Negotiations with PG&E

As we noted in a February 26(**th) comment, the Governor has reached an
agreement in principle with Southern California Edison (EIX: B3/CC) to address
that utility's past under-collections.  He hopes to also have an agreement
with
PG&E within the next 30 days, suggesting that progress was made in particular
in the last 2-3 days.  However, the Governor acknowledged that reaching an
agreement with PG&E was more difficult due to its larger under-collected
balance and lower rates compared with SCE.

Some Generators Agree to Haircut

The Governor indicated that a couple of unnamed generators have voluntarily
agreed to accept less than 100 cents on the dollar for their past due
receivables. When pressed about which parties they've had constructive
discussions with, he identified Williams (WMB: Baa2/BBB-), Enron (ENE:
Baa1/BBB+) and Dynegy (DYN: Baa2/BBB+).  We note that most of the generators
and marketers with exposure to California have established reserves against
possible losses.  Importantly, the Governor said that he hoped that the banks
and bondholders would not be asked to take a haircut.

Prospects for Legislation and Possibility of Ballot Initiative

The Governor said he is quite confident that he can reach an agreement with
the
utilities that the legislature can support.  Although he admitted that he
couldn't prevent someone from proposing a ballot initiative, the governor said
that in the end, the acid test with the public is how it affects their pocket
books.  Thus, if there is ultimately a ballot initiative, Governor Davis is
optimistic that the public will be supportive of his plan given the limited
impact on electric rates.

Status of Defaulted Utility Debt

As we have commented in the past, it appears unlikely that the resulting
legislation will pass with the required 2/3majority to go into effect
immediately.  Accordingly, there will be a several month lag before the
utilities receive any cash.  In response to a question, it appears that the
state will not step in to help the utilities pay off any maturing or defaulted
commercial paper.  But the Governor and his advisers hope that legislation
will
provide enough certainty so that the companies can get bridge financing.
Essentially, it appears the Governor is leaving it up to the utilities to find
the money from their banks.

Governor's Strategy to Keep the Lights On

The Governor stated that a key reason that deregulation failed in California
was that no new power plants were built in the state for over twelve years.
In
the intervening time, demand caught up with supply.  In response, he has
proposed various conservation initiatives and is trying to expedite the
construction of new power plants.  He set a goal of having 20,000 megawatts
(mws) of new supply on line by 2004.

In addition, the governor highlighted the need for additional investment in
the
transmission infrastructure.  In particular, he cited the need to expand the
capacity to import more power from Arizona as well to improve the ability to
move power from south to north within the state. He suggested that part of the
rationale for the state taking over the utilities' transmission grids was to
ensure that the additional investment takes place.  He also suggested that the
state would lease the transmission lines back to the utilities to allow them
to
continue to operate them.

In the meantime, the focus is to move away from California's over-reliance on
the spot market.  In that vein, Calpine (CPN: Ba1/BB+) yesterday announced the
signing of two long-term contracts with the state's Department of Water
Resources (DWR).  One of those contracts was to sell up to 1,000 mws over a
ten-
year term.  The other was to provide up to 495 mw of peaking capacity under a
20-year contract.  Earlier in February, CPN had reached agreement with the DWR
on a separate 10-year contract for an additional 1,000 mws.

(EIX, WMB)  MLPF&S was a manager of the most recent public offering of
securities of this company within the last three years.
Copyright 2001 Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S).
All rights reserved. Any unauthorized use or disclosure is prohibited. This
report has been prepared and issued by MLPF&S and/or one of its affiliates and
has been approved for publication in the United Kingdom by Merrill Lynch,
Pierce, Fenner & Smith Limited, which is regulated by SFA; has been considered
and distributed in Australia by Merrill Lynch Equities (Australia) Limited
(ACN
006 276 795), a licensed securities dealer under the Australian Corporations
Law; is distributed in Hong Kong by Merrill Lynch (Asia Pacific) Ltd, which is
regulated by the Hong Kong SFC; and is distributed in Singapore by Merrill
Lynch International Bank Ltd (Merchant Bank) and Merrill Lynch (Singapore) Pte
Ltd, which are regulated by the Monetary Authority of Singapore.  The
information herein was obtained from various sources; we do not guarantee its
accuracy or completeness. Additional information available.
Neither the information nor any opinion expressed constitutes an offer, or an
invitation to make an offer, to buy or sell any securities or any options,
futures or other derivatives related to such securities ("related
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or its affiliates may from time to time perform investment banking or other
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This research report is prepared for general circulation and is circulated for
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who may receive this report.  Investors should seek financial advice regarding
the appropriateness of investing in any securities or investment strategies
discussed or recommended in this report and should understand that statements
regarding future prospects may not be realized.  Investors should note that
income from such securities, if any, may fluctuate and that each security's
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than originally invested.  Past performance is not necessarily a guide to
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The bonds of the company are traded over-the-counter.  Retail sales and/or
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Foreign currency rates of exchange may adversely affect the value, price or
income of any security or related investment mentioned in this report.  In
addition, investors in securities such as ADRs, whose values are influenced by
the currency of the underlying security, effectively assume currency risk.
 Provider ID: 10906001
-0- Mar/01/2001 14:47 GM
------------------------------------------------------------------------------
------------------------------------------------------------------------------
------
Thursday, March 1, 2001

Energy Deal May Take a Month, Davis Tells Analysts

Power: Wall Street experts appear cool to governor, who tries to convince
them he is solving the state's electricity crisis.
California members of Congress vow to keep seeking wholesale price caps.

By DAN MORAIN and RICHARD SIMON, Times Staff Writers

?????As a hopeful Gov. Gray Davis extended his East Coast barnstorming tour
before skeptical Wall Street utility analysts Wednesday,
 members of California's congressional delegation vowed to continue their
campaign for caps on wholesale electricity prices after a tense
 standoff with a top federal regulator.
?????Davis completed his five-day trip by raising about $200,000 for his 2002
reelection campaign at private events in Manhattan, and then
 conferring with analysts in an effort to persuade them that he is solving
California's energy crisis.
?????Although Davis delivered some good news--that some electricity suppliers
would accept less than the full payments owed to them by the
 state's debt-ridden utilities--he acknowledged that it probably would take
more than a month to complete his plan to enable the utilities to stave
 off bankruptcy.
?????"Did they leave without doubt? I don't know that is ever the case,"
Davis said of his select audience of 35 analysts. "But I do believe they left
thinking I'm sincere, I'm making progress, and am confident that I will fix
it."

?????Reaction Varies
?????Analysts who attended the hourlong meeting came away saying Davis
offered little that they didn't already know. Some questioned why he excluded
many analysts who closely track utility bond debt, given that Southern
California Edison and Pacific Gas & Electric Co. have defaulted
 on several bond payments.
?????Michael S. Worms, senior vice president of Gerard, Klauer & Mattison,
described Davis as "very cognizant of the situation," adding that the
governor appears to understand the fundamental problem that California lacks
sufficient power plants to supply the populace.
?????"I got the impression he is on top of it. He understands the issues,"
Worms said.
?????Others were far less charitable. Davis' lack of specificity added to
their skepticism.
?????"I'd like to see specifics," said Steven M. Fetter of Fitch Inc., which
rates companies' credit-worthiness. "I didn't expect specifics, and he lived
up to my expectations."
?????Davis told the analysts that some power generators have agreed to forgo
full payments from the utilities. State regulators have barred Edison
 and PG&E from passing on to consumers the skyrocketing wholesale power costs
charged by independent power generators and marketers, leaving the utilities
owing billions.
?????Davis spokesman Steve Maviglio confirmed Wednesday that two generators
made "unsolicited offers" to the governor to write off some of
 their debt. He did not identify the independent generators or say how much
they would trim from their debt.
?????Representatives of the energy companies that have sold more than $1
billion in electricity to the state since January reacted coolly to Davis'
suggestion that they not receive full payment for their goods.
?????"The best insurance against continued energy shortages is full payment
for all deliveries that have been made in the past," said Gary Ackerman
 of the Western Power Trading Forum, a group of energy marketers and
generators.
?????Davis last week said he and Edison had agreed to the outlines of a deal
by which the state would give the utility $2.76 billion in exchange for
its share of the statewide electricity transmission system.
?????At the time, he said he hoped to have a more detailed version of the
plan by the end of this week, as well as one to buy transmission lines
 from San Diego Gas & Electric.

?????Fund-Raising Events
?????However, on Wednesday, the governor said a final agreement between the
state and Edison will not be reached for as long as a month,
maybe longer. A deal with PG&E, the state's largest utility, "could take a
little longer," Davis said, adding that the company's debt is far larger
 than Edison's.
?????"This transaction is going to be scrutinized for decades to come," he
said. "I'm determined to do it fairly but do it in a way that withstands
scrutiny."
?????After conferring with Bush administration officials and attending a
governors conference in Washington, D.C., over the weekend, Davis
arrived in New York on Tuesday to be feted at a fund-raising dinner hosted by
Richard Medley, an economic strategy consultant and head of Medley Global
Advisors. On Wednesday, Davis attended a breakfast fund-raiser at the
headquarters of the banking and financial services firm Citigroup, whose
chairman, Sanford Weill, served as host.
?????The governor raised an estimated $200,000 in all for his 2002 reelection
campaign, a source said, requesting anonymity. Neither Medley
 nor Weill could be reached for comment. Both men are significant political
donors to national campaigns.
?????While Davis sought to make the case for his utility rescue plan, members
of California's congressional delegation focused on efforts to reduce
 the high wholesale power costs at the heart of the crisis. The bipartisan
group of lawmakers pledged to press ahead with legislation that would impose
temporary price caps, after they met behind closed doors with Curt Hebert
Jr., chairman of the Federal Energy Regulatory Commission. Hebert is a
free-market advocate and has vigorously opposed price controls.
?????"You heard me screaming?" asked Rep. Bob Filner (D-San Diego) after the
meeting with Hebert.
?????"Almost everyone argued with Mr. Hebert that we need help from FERC,"
said Rep. Henry A. Waxman (D-Los Angeles), citing Democratic
 and Republican support for temporary limits on wholesale prices. "Mr. Hebert
didn't care."
?????"It didn't make any difference whether you were a conservative
Republican or a liberal Democrat," Waxman said. "We all felt that we were
 not getting the help we need from the Federal Energy Regulatory Commission."
?????But Waxman said he considered the meeting worthwhile "because it had to
impress upon Mr. Hebert" the strong support for price controls shared by many
California lawmakers.
?????Several Republicans who attended the session were less critical of the
agency and its chairman but expressed support for providing a
legislative fix in the absence of FERC intervention.
?????"The chairman is not going to be supportive of our bill, but he's at
least willing to talk with us and listen to us," said Rep. Duncan Hunter
(R-Alpine)
?????So far, only about half the delegation has endorsed the price cap
legislation. Filner noted that he and his ideological opposite, Hunter, have
 found common ground on this issue after hearing from constituents squeezed
by higher fuel costs.
?????During the meeting, Hebert declined--on his attorney's advice--to take a
stand on Davis' proposal to have the state take control of the
electrical transmission system, according to some of those attending. The
takeover would require FERC approval, and Hebert reportedly
expressed concern about taking a position on a matter that his agency has not
yet considered.
?????Hebert bristled when a reporter, chasing him down a hallway, asked if
FERC were doing enough to help California.
?????"We've worked so hard on California that we have a backlog of 2,000
cases right now," he snapped, adding that Davis never asked to meet
 with him.
?????Asked if he was aware of talk that another chairman might be named, he
said, "You'd have to ask the president that."
?????In other developments Wednesday:
?????* California's electricity grid was jolted into a Stage 2 power
emergency after several large electricity plants tripped offline in the
morning.
The outages were not related to the Seattle earthquake, which had no
significant effect on regionwide electricity operations, a grid spokesman
 said.
?????* Millions of Californians would receive rebates of 10 cents for every
kilowatt-hour of electricity they conserve this summer, under legislation
introduced by state Sen. Don Perata (D-Alameda). The bill, SB 63X, would set
aside $1 billion to reward consumers who reduce their power
 use compared with that of the same month a year earlier.
?????* Calpine Corp. said it signed two more long-term electricity contracts
with the state Department of Water Resources valued at $8.3 billion.
?????* Southern California Gas Co. agreed to provide as much as 30 million
cubic feet of gas per day to PG&E in the next month to help ease the
utility's difficulties in obtaining supplies. Under the agreement, PG&E will
guarantee payment to the Los Angeles gas utility by pledging gas
accounts receivable as security for unpaid balances that cannot exceed $16.5
million. Gas Co. Chairman Edwin A. Guiles said the agreement
should have no adverse effects on natural gas costs or service for any of the
company's 5 million customers.
---
?????Times staff writers Nancy Rivera Brooks and Nicholas Riccardi in Los
Angeles, Miguel Bustillo and Nancy Vogel in Sacramento and Tim Reiterman in
San Francisco contributed to this story.
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PUC chief says summer outages not inevitable
By Jim Sanders
Bee Capitol Bureau
(Published March 1, 2001)
California Public Utilities Commission President Loretta Lynch defended her
handling of the energy crisis in a speech Wednesday but made no promises that
blackouts won't occur this summer.
"We can probably dodge the bullet" if Californians reduce their electricity
use by 10 percent this summer, she said.
But the key will be Mother Nature. If temperatures soar far beyond a normal
year, she said, "We're going to have serious problems."
Gov. Gray Davis, meanwhile, sought to reassure stock analysts about
California's plans to cope with the crisis on a trip to New York, where he
outlined steps the state is taking to reach a deal to retire utilities'
debts.
But electric emergencies returned to plague California's grid, as imported
power from the Pacific Northwest dwindled.
After five days without issuing any power alerts, which warn that backup
electricity supplies have dipped too low, the Independent System
Operator declared a Stage 2 alert at 9:40 a.m. Wednesday. The warning was
scheduled to stay in place through midnight.
Unexpected power plant breakdowns and low imports triggered the alert, said
spokesman Patrick Dorinson.
California energy experts have predicted the state could be thousands of
megawatts of electricity short this summer, enough to leave millions of homes
without lights and air conditioning.
Lynch, who has been on the front lines as the state has spent billions of
dollars to keep the power on, declined to predict whether rates will rise
 to help solve California's electricity problems.
Rates will depend on many factors, she said, including the state's success in
securing long-term contracts at bargain rates, increasing power generation
and encouraging conservation.
Davis has vowed to keep rates "within the existing rate structure," but that
does not rule out ending a 10 percent rate freeze imposed several
 years ago or increasing rates for heavy energy users of debt-ridden Southern
California Edison and Pacific Gas and Electric Co.
Lynch said the state is on track to achieve stability in the electricity
industry through its proposal to buy 32,000 miles of power transmission
lines.
Lynch, a former campaign volunteer for Davis, was director of his Office of
Planning and Research before being named to the PUC in December 1999.
She started her speech Wednesday to the Sacramento Press Club with a
whimsical reference to the biblical character known for his suffering.
"I now understand what Job must have felt like," Lynch quipped.
She blamed the energy crisis largely on the fact that California's
electricity deregulation forced utilities to sell many of their power plants
and left
 them vulnerable when out-of-state generators failed to meet supply
expectations and wholesale prices soared.
"That lack of vision has come at an extraordinary price for California,"
Lynch said.
Asked what the PUC, in retrospect, could have done to avert the crisis, Lynch
pointed again to deregulation.
Officials should have seen that deregulation wasn't working, she said, and
either reversed it or re-evaluated it.
"From my perspective, the system we created was built on theory, hope and
promise," she said. "The promise was not realized because the
theory was faulty."
Deregulation of the industry did not lead to the heavy competition that was
predicted to provide ample supply and lower prices.
Lynch defended the PUC against criticism that it exacerbated the crisis by
reacting too slowly to requests that would have allowed utilities to
 raise rates and/or negotiate long-term energy contracts at lower-than-market
rates.
Lynch said the PUC has voted consistently since last August to allow the
utilities to enter into long-term power contracts.
"When the utilities asked, we gave them the authority -- and in some cases at
lightning speed," she said.
In recent legislative hearings, utility officials said the PUC's votes did
not solve their problems because the agency reserved the right to determine
 in years to come whether the contracts were reasonable. If the PUC
ultimately decided against the utilities, the officials said their
shareholders
 could be left holding the bag for large sums of money collected years prior
to the "reasonableness review."Thus, the utilities hesitated to enter
 into long-term pacts.
Lynch said her agency has a responsibility to protect consumer interests
regarding rate hikes.
"It was their business decision not to (negotiate long-term contracts)
fully," she said of Edison and PG&E.
Lynch also said the Federal Energy Regulatory Commission's actions in
December helped send electricity rates soaring 500 percent in five days.
Before FERC acted, she said, "the utilities were bleeding, but they weren't
hemorrhaging."
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Dan Walters: Why has probe stopped short?

(Published March 1, 2001)
Earlier this year, as California's energy squeeze morphed into a full-blown
crisis, the state Assembly's leadership opened what it said would be
an in-depth investigation, modeled after the much-acclaimed probe of former
Insurance Commissioner Chuck Quackenbush.
A special subcommittee, chaired by Assemblyman Darrell Steinberg,
D-Sacramento, was established, investigators, many of them veterans of
 the Quackenbush probe, went to work, and a few days of hearings were
eventually held.
The reality didn't live up to the advance billing. Utility executives and
other players were grilled, but the hearings fell far short of laying out who
 made what decisions that brought the utilities to the edge of bankruptcy and
left California scrambling to find and pay for enough juice to keep
its lights burning. And then the hearings ended abruptly, the apparent victim
of a partisan conflict.
Republicans have been demanding a deeper inquiry into what the Public
Utilities Commission, and inferentially Gov. Gray Davis, did or not do
 last summer when the crisis first began to make itself felt. And their
partisan interest is also clear: Pinning the crisis on Davis and the PUC would
 be ammunition for the 2002 election, when Davis is seeking re-election.
Democrats want to move into aspects of the energy crisis, such as
shortages of natural gas and the electricity supply prospects for next
summer, that would not expose the governor or the PUC to any
 embarrassing revelations.
Steinberg insists that he's not trying to protect Davis. But only this week,
after Republicans exerted behind-the-scenes pressure, did he send
 a letter to the PUC backing the GOP demand for extensive access to critical
documents and interviews of key participants in last summer's
 actions.
Utilities executives say they pleaded with the PUC and Davis last summer to
acquire long-term, low-cost contracts with suppliers, but that they
 were rebuffed. The issue is critical, because the lack of long-term
contracts meant that utilities ran up many billions of dollars in debts to
pay for
 power at soaring spot market prices -- a form of deficit financing that the
state is continuing. How much of that debt should be eaten by utilities,
 and how much should be recovered from ratepayers is, perhaps, the single
most controversial aspect of the crisis.
The touchiness of the issue was underscored Wednesday when PUC president
Loretta Lynch appeared before the Sacramento Press Club and
 dismissed as "one of the biggest myths" and "a tremendous canard" the
allegation that the PUC had blocked long-term supply contracting. She
 said the PUC had granted long-term contracting authority to the utilities,
but they allege that the permission came with too many financial strings
 to be practical.
Lynch also denied that the PUC has dragged its feet in responding to demands
for documents, citing the overwhelming volume of both the
 demands and the inquiries from several legislative committees. Earlier last
month, PUC executive director Wesley Franklin complained in one
response to legislators that the demanded documents "may include confidential
information" and complying with the requests would "entail
considerable time and effort for us to compile ... "
Whether the legislative hearings ever return to last summer's events is
uncertain. The Republicans' partisan motives aside, however, it is important
 to establish what role Davis and the PUC played so that the public can judge
any Davis-brokered settlement of the utilities' debts. It's also an
 important test for Assembly Speaker Bob Hertzberg, who is very proud of the
investigation of Republican Quackenbush and has pledged that
 other official shortcomings would be ruthlessly examined regardless of their
partisan origin.
DAN WALTERS' column appears daily, except Saturday. Mail: P.O. Box 15779,
Sacramento, CA 95852; phone (916) 321-1195;
 fax: (781) 846-8350
E-mail: dwalters@sacbee.com
Recent columns: http://www.capitolalert.com/voices/index_walters.html
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Newswatch: PG&E's gas rates to ease in March

(Published March 1, 2001)

Rates for natural gas will inch down in March but will remain more than twice
as high as a year ago, Pacific Gas and Electric
 Co. said Wednesday.
Household gas bills will average $95 this month, up from $45 in March 2000,
but down from this winter's high of $125 in
January, the utility said.
Gas rates are high nationwide as the result of years of reduced exploration
while prices were low. But they have been far
higher in California and various analysts have suggested a range of reasons:
pipeline and storage shortages; soaring
demand by power plants; and market manipulation.
PG&E figures a different rate each month, based on how much it expects to
spend buying gas for households and small businesses. Large businesses are
responsible for lining up their own supplies.
An average March household bill will be about 16 percent lower than an
average February bill, which PG&E calculated at
$113.
-- Carrie Peyton
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Davis optimistic about fed approval for power line deal

ASSOCIATED PRESS
February 28, 2001
WASHINGTON ) California Gov. Gray Davis is hopeful federal energy officials
will back a proposal aimed at easing the state's energy crisis by purchasing
a wide swath of transmission lines.
While the Davis administration continued negotiations with three
investor-owned utilities Wednesday, the state's weeklong respite from power
alerts came to an end.
Four Western power plants shut down unexpectedly, prompting grid officials to
call a Stage 2 alert with electricity reserves expected to drop below 5
percent, said spokeswoman Lorie O'Donley of the California Independent System
Operator. The plants included two in Montana and one each in Oregon and
Northern California.
In addition, several California plants were down for scheduled repairs,
O'Donley said.
The state has been besieged with electricity problems in recent months. They
include the near-bankruptcy of Southern California Edison and Pacific Gas and
Electric Co. and a lack of power that resulted in rolling blackouts twice
last month in Northern California.
On Friday, the governor announced a deal to purchase Edison's power lines and
require Edison International, the utility's parent company, to sell cheap
power to the state for a decade.
Davis gave the Edison proposal to Energy Secretary Spencer Abraham on Tuesday
and expects a response by the end of the week.
Abraham "wants this problem solved and he's been very supportive," Davis
said. "He's recommended approval on every request I've made, and I believe he
will support our proposal."
Supporters say the $2.7 billion plan to buy Edison's transmission system and
have the state spend several billion more to buy the power lines of its other
two investor-owned utilities, could lead to quick improvements to a
bottlenecked system overdue for repairs. Critics contend it would saddle the
state with an antiquated network that could prove costly to fix.
The Davis administration continues negotiating with PG&E and San Diego Gas &
Electric. In all, Davis' plan would put 26,000 miles of power lines under
state control at a total price that could range from $4.5 billion to $7
billion.
Edison officials said Tuesday they would prefer a deal that includes all
three utilities, but might agree to sell Edison's transmission lines alone as
long as it is not held responsible for any of PG&E's debts.
As a member of the California Power Exchange, Edison agreed to pay a share of
any default by any other member.
A group of power generators have sued the exchange because they were charged
a portion of the debt owed by Edison and PG&E. That lawsuit is on hold while
the issue is being decided by the Federal Energy Regulatory Commission.
"Clearly it is simpler and a lot cleaner if all three utilities are
ultimately a party to some sort of agreement with the state," Ted Craver,
chief financial officer of Edison International, said during a conference
call with creditors. "It's not necessarily the only way it can be done."
The governor feels the state won't "have a satisfactory arrangement without
having 60 percents of the transmission lines and that requires that we have
an agreement with PG&E," spokesman Roger Salazar said.
Edison and PG&E say they have accumulated nearly $13 billion in losses
because the state's 1996 deregulation law prevented them from passing the
true costs of wholesale energy ) which have soared since last June ) to their
customers.
The governor's plan would infuse the utilities with part of the cash they say
they need to remain solvent.
Some state lawmakers have said the long-term costs of the plan outweigh the
immediate benefits because the transmission lines need repairs that could
cost an estimated $1 billion a year.
Assembly Minority Leader Bill Campbell, R-Villa Park, said Republican
lawmakers are unlikely to support the governor's plan, which needs
legislative approval.
Without Republican support, the measure could still pass, but it would take
effect 90 days after the governor signed it, rather than immediately.
"That's a hurdle, waiting 90 days in these delicate times," Campbell said.
Addressing a lunch for the California State Society attended by members of
the state's congressional delegation, Davis outlined his plans to resolve the
energy crisis, in part by speeding up power plant construction.
"We have a real challenge this summer and the following summer," he said.
"The third year I think enough generation will be online so that we're in
much better shape."
Davis has issued executive orders to shorten the approval process for new
plants and expects to gain 5,000 megawatts by summer ) enough to power about
5 million homes.
In addition to increasing power production, Davis emphasized the need for
greater conservation, advising his state's consumers to turn off lights in
empty rooms, unplug unused appliances and lower thermostats.
"In my house, my wife has the thermostat down to 55 degrees," he said. "Going
to the kitchen in the middle of the night is like a trip to Antarctica."
??

On the Net:
California Energy Commission: www.energy.ca.gov
U.S. Department of Energy: www.energy.gov
California Independent System Operator: www.caiso.com
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BUSINESS
Partial Power Payments / Governor asks that generators take less
Christian Berthelsen
?
03/01/2001
The San Francisco Chronicle
FINAL
Page B1
(Copyright 2001)
California Gov. Gray Davis yesterday suggested that power generators accept
partial payment for the electricity they have supplied to the state's
financially troubled utilities.
Analysts at the meeting said the governor made reference to a company that
had agreed to do so. However, he did not identify the company or offer
details about how much it would accept.
Davis' comments at a closed meeting with analysts in New York City are
significant because they represent an apparent departure from the power
companies' position that they be repaid in full.
The move is in line with the governor's view that the generating companies
selling electricity to California 's utilities should contribute "modestly
and voluntarily" to solving the crisis.
Said Richard Cortwright, an analyst for Standard & Poors: "It came across
pretty loud and clear that he felt they could afford to take less than a
hundred cents on the dollar and still do pretty well for themselves."
Several power companies, including Enron Corp. and Reliant, both of Houston,
were quoted by Bloomberg News as saying they were surprised by the governor's
statements.
Davis went to Wall Street yesterday for the first time during the California
power crisis to reassure the financial world's opinion- makers he is doing
all he can to resolve the problem.
During the meeting, Davis presented a history of how California 's
investor-owned utilities came to be in the sorry financial shape they are in.
He was also said to have emphatically ruled out electricity rate increases,
saying they are politically unfeasible and would be easily undone by a voter
initiative.
Davis also said he will have a deal within 30 days to purchase transmission
lines from Pacific Gas & Electric Co. and Southern California Edison.
Financial analysts are looking forward to that deal as a way of providing the
utilities with some cash to work their way out from under a combined debt
load estimated at $13 billion. The utilities have been barred by law from
passing high wholesale power costs on to customers.
At a press conference after the meeting, Davis told reporters that
negotiations are improving between the state and PG&E for a deal similar to
the one announced with Edison last week. In that transaction, the state would
buy Edison's power lines for $2.76 billion, and Edison would issue bonds to
recover its wholesale power costs.
Yesterday's meeting was closed to the media and investors, and no Internet
broadcast or teleconference of the event was available. That frustrated some
investors and analysts who had hoped for greater access -- particularly
bondholders of the two utilities, who have the greatest power to push the
utilities into bankruptcy if they decide to do so.
But a transcript of the session was being prepared yesterday and is expected
to be made available this morning on the governor's Web site,
governor.ca.gov.
Analysts who attended the meeting said the Davis visit was productive, though
not likely to produce any immediate change in equity recommendations or bond
ratings.
"There wasn't any news that's new," said Dave Hitchcock, director of Standard
& Poor's state and local government group. "He reiterated he expects an
agreement with PG&E in 30 days. So we have a date we can watch."
Indeed, there appeared to be little immediate reaction in the market during
the 45 minutes or so of trading that was left after the meeting broke.
Trading volume for PG&E remained under 25,000 shares, and the stock closed at
$13.96, down 9 cents.
Trading was heavier in Edison shares, which ended the day down 4 cents at
$14.90. Both stocks are trading at around half of their 52- week highs.
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BUSINESS
PG&E May Be Ready To Deal / Lawyers to advise it on selling lines
David Lazarus
?
03/01/2001
The San Francisco Chronicle
FINAL
Page B1
(Copyright 2001)
Pacific Gas and Electric Co. has retained outside counsel to advise it on
selling its transmission lines to the state, The Chronicle has learned.
The move represents a potential breakthrough in the stalemated talks between
PG&E and representatives of Gov. Gray Davis on California 's plan to buy the
utility's power lines for perhaps more than $7 billion.
Southern California Edison already has voiced willingness to part with its
transmission lines. But sources familiar with the negotiations said PG&E has
remained largely inflexible, insisting that its lines are not for sale.
That stance could be changing.
According to an internal memo sent to some PG&E employees this week, the
utility is bringing in attorneys from an unspecified law firm to offer
guidance on a potential sale of assets.
"The company has hired a law firm to help deal with a possible purchase of
the electric transmission system by the state, as proposed by Gov. Davis as
part of a deal to resolve the utility debt problem," the memo said.
It added: "Don't read anything into this regarding an agreement by PG&E to
sell or not to sell."
Ron Low, a PG&E spokesman, refused to confirm the contents of the memo or
even that such a memo was issued.
Choosing his words carefully, Low said: "We are not aware of the alleged
memo. We cannot speculate on a memo we have not seen." He said he was
speaking on behalf of the public relations department.
Asked whether outside counsel had been retained, Low said, "It would be
inappropriate to comment on ongoing discussions with the governor."
Nevertheless, sources within the utility said the new lawyers are being given
workstations in PG&E's land department, where records of real estate holdings
are kept.
The sources interpreted this as a sign that the utility is eager to place a
higher value on its assets -- almost certainly more than the governor has
offered so far.
Edison already has agreed to sell its power lines for $2.76 billion, which is
about 2.3 times book value, or the value placed on the system for accounting
purposes.
If PG&E were to accept a similar premium on its lines, the sale price would
be $7.2 billion.
Sources within the utility said that if a deal is reached, it will likely be
for above this amount. The new lawyers, presumably, are intended to help PG&E
drive a harder bargain.
"They're trying to play hardball, but I'll bet they submit," said Richard
Bilas, who sits on the California Public Utilities Commission. "Getting more
than two times book value doesn't sound like a bad deal."
The governor told Wall Street analysts in New York yesterday that the
negotiations with PG&E could last another month.
On Tuesday, he said U.S. Energy Secretary Spencer Abraham is open to
California 's buying the utilities' power networks. Federal approval is
necessary for the plan to work.
The Bush administration and federal regulators have been less forthcoming,
however. Privately, they have expressed skepticism about a public entity's
taking over private energy assets.
California is hoping to return the state's cash-strapped utilities to
solvency by handing over billions of dollars in return for hard assets. PG&E
and Edison have racked up nearly $13 billion in debt as a result of the
state's bungled efforts to deregulate electricity prices.
Sources familiar with the talks said Edison's parent company, Edison
International, appears eager to get out of the utility business, while PG&E's
parent, PG&E Corp., would prefer to remain a player in the industry.
"The companies are structured differently," said the PUC's Bilas. "I believe
Edison has a much broader operation than PG&E."
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EDITORIAL
OPEN FORUM
Generating Ideas / Deregulation, done right this time -- not state control --
is the answer to Calfiornia's energy woes
Kenneth L. Lay
?
03/01/2001
The San Francisco Chronicle
FINAL
Page A23
(Copyright 2001)
BLACKOUTS, skyrocketing electricity prices and the threat of bankruptcy of
two large utilities must mean the failure of deregulation, right?
No, it's not right.
What has happened in California over the past four years is not deregulation.
It is misguided regulation.
Deregulation does not mean eliminating customer choice and competition for
most customers. Deregulation does not mean limiting new market entrants.
Fewer than five percent of customers in California are served by competing
suppliers.
Deregulation does not mean creating a single central power pool from which
all participants must buy and sell their wholesale power; the state Power
Exchange effectively replaced three monopoly buyers with one monopoly buyer.
Deregulation does not mean buying all of your commodity at the last minute,
on the spot market, rather than planning ahead and purchasing most of the
power under long-term contracts that lock in prices.
The situation in California is the result of continued regulation,
complicated by a series of natural and man-made factors.
In the past two years, California has enjoyed an economic boom fueled by a
burgeoning technology industry. Since 1995, demand for electricity in
California has grown by 5,500 megawatts. Supply, on the other hand, has not
kept pace.
California was clearly headed for major problems when nature pushed it over
the edge. November and December 1999 were the warmest in the previous 100
years. Those same months in 2000 were the coldest in the last century. Add a
sharply reduced snowpack that has dried up hydro sources from Northern
California and the Pacific Northwest. Add tight gas supplies across the
country, and you have an electricity supply problem in the West and an
electricity supply crisis in California .
The problem in California 's energy market is simple: There is too little
supply and too much demand. As a result, every potential solution must
address either or both of those factors, and the test for any proposal must
be: Does it increase supply? Does it decrease demand?
California desperately needs new generation. While Enron and other companies
have built peaker generation facilities in as little as 10 months in other
states, it takes years to construct a power plant in California .
The state also suffers from a congested transmission system, which prevents
the delivery of power to where it is needed. California needs quicker siting
for power plants and expanded transmission facilities.
California also needs real-time pricing -- pricing that reflects the
difference in the cost of providing electricity at peak periods as compared
to non-peak periods.
As a country, we're power hungry. Virtually all of our daily amenities are
fueled by electricity. We flip switches and use electricity anytime we want,
with no thought to the cost at a given moment.
But if customers, particularly large commercial and industrial customers,
received real-time price signals, they'd know how much they were paying for
electricity at any given time. This would encourage conservation or shifting
usage to off-peak times to reduce electric bills.
This would also spread California 's scarce electricity supplies over more
users (including those residential customers who don't have the flexibility
to reduce or shift demand) and reduce the risk of rotating blackouts.
A complementary demand-side solution would be to purchase demand reductions.
If utilities or the state are willing to pay $75 for a megawatt hour, they
ought to be willing to pay $75 for a "negawatt" hour.
This would free up still additional megawatts to meet peak demand.
Blackouts are not voluntary, but by giving customers incentives to reduce
demand, the choice is theirs, and the result is less disruption to business
and the economy.
Customer choice is absolutely essential in creating a competitive market and
in allowing consumers to realize the benefits of competition.
Just ask utility customers in San Diego, whose supplier purchased most of its
power on the spot market. When prices jumped, those hikes were passed along
to the consumer. The only customers who were protected were those who chose
alternative suppliers like Enron and had locked in a price, thus avoiding the
sharp price increases.
California needs to rely less on the spot market. A balanced portfolio of
short- and long-term purchases by customers would sharply reduce
Californian's exposure to volatile prices and would bring down prices in the
near term.
California needs to restore the creditworthiness of the utilities, which is
necessary to attract new generation and long-term supply commitments. The
state has made a significant first step by allowing the state Department of
Water Resources to purchase power on behalf of the utilities.
In a crisis, it is equally important to understand what won't work.
We cannot afford to waste time on things that don't work or make matters
worse. California does not need state control of the power business.
There is no reason to believe -- and every reason to doubt -- that government
will do a better job than private firms in rapidly constructing new
facilities and operating them efficiently. In every other developed nation,
governments are getting out of the power business, not trying to get in it.
What California does not need is price caps, which don't work because they
neither increase supply nor decrease demand. In fact, they worsen the
situation. Price caps discourage investment in the development of new
generation.
When the state imposed price caps last October, companies such as Enron were
forced to cancel plans for more than 1,000 megawatts of peaking generation
that would have been online by this summer. Peaking plants are designed to
run fewer than 30 days a year -- only on days when supplies are tight. And if
price caps are in place, companies cannot recover their capital investment.
Price caps also discourage conservation and sales of power into the state
from power plants in other states.
If done right, deregulation means choice and competition. Deregulation means
lower prices. Deregulation means innovation. California has the opportunity
now to get it right.

GRAPHIC; Caption: PAUL LACHINE/Special to The Chronicle


Christi --

What's the latest on the PGE imbalance method??

Jim


CALENDAR ENTRY:	APPOINTMENT

Description:
	Review Winter Ops Mtg - Lynn's Office

Date:		9/12/2000
Time:		1:30 PM - 2:30 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Here is some additional information since the circus closed down in Sacramento on Saturday morning.

The Senate adjourned early Saturday morning, closing out both the regular session and the second extraordinary session.
The Assembly adjourned a few hours later, closing the regular session, but NOT the second extraordinary session.

The Legislature's options:
1) The Governor calls them back in two weeks, they continue with the second extraordinary session, and pick up where they left off with the bills they were working on up till Saturday morning.
2) The Governor calls them back in two weeks, the Assembly ends the second extraordinary session, they begin a third extraordinary session, and the bills that were left hanging on Saturday morning must start the process from scratch.  However, they can pass a "waiver," which effectively would allow them to start a 3rd session AND then pick up where they left off on Saturday morning.
3) The Governor calls them back in two weeks and the Legislature meets briefly and shuts down without doing anything, i.e., the Govenor can call them back, but he can't make them vote.

In short, the Legislature has a significant amount of discretion to do what they please.

Where to from here?
Through its actions on Saturday morning, the Senate has sent a strong signal to Davis that the Senate is not inclined to vote out an Edison bailout that differs from the version it passed prior to leaving for summer recess last July.
Just before closing down on Saturday, the Senate also passed a resolution declaring that "...the condition of electric service in California no longer consitutes a 'sudden and severe energy shortage'" and "...that the state of emergency proclaimed by the Governor on January 17, 2001, is at and end."  The resolution seems to send an additional signal that the Senate does not see any great need to bail out Edison.  The Assembly did not pass the resolution, however.
Given the Senate's view, and the open hositility between Davis and Burton, Davis' only remaining option seems to be to threaten the Senate with vetoes unless the Senate first passes the Davis' Edison bill.  It is unclear at this time whether Davis would play it that tough.
With the Legislature gone, the action turns to the PUC, where a vote on DA suspension is scheduled for Thursday.  We are working with customers and providers to stop DA from being suspended, or at a minimum, to ensure that any suspension date is not retroactive.
Finally, Burton held a news conference this morning at which he said:
Burton and Senator Bowen (Bowen's been taking the lead on DA in the Senate) will ask the California PUC to do a study on how DA can be retained without "adversely affecting homeowners and small businesses."
He doesn't know why "the Governor would waste taxpayers' money to hold a special session."
With all the troubled businesses in California right now, he doesn't know why the State would bail Edison out and not the others.

If all this sounds ridiculous, it is.

We'll report back with additional information as we get it.

Best,
Jeff


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/16/2001
05:26 PM ---------------------------

"Btu" <subs@Btu.net> on 02/16/2001 04:44:19 PM
To: "Btu's Weekly Power Report" <>
cc:
Subject: Btu's Weekly Power Report

Attached is the latest issue of Btu's Weekly Power Report

e-mail: info@Btu.net
phone: 732-758-8222
fax: 732-758-8286

 - wp021901.pdf


All I asked Eric to do was:
ensure that there was an Enron contact if another complaint came in.
find out from Alpert's office if we could call back a few of those who called
to complain to find out what they perceived, correct the misperception,
apologize.

From: Jeff Dasovich@ENRON on 03/19/2001 04:20 PM
Sent by: Jeff Dasovich@ENRON
To: Scott Govenar <sgovenar@govadv.com>, Eric Letke/DUB/EES@EES, Sandra
McCubbin/NA/Enron@Enron, hgovenar@govadv.com, Susan J Mara/NA/Enron@ENRON,
mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON, Janel
Guerrero/Corp/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Richard
Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Harry
Kingerski/NA/Enron@Enron, MDay@GMSSR.com, ken@kdscommunications.com, Marty
Sunde/HOU/EES@EES
cc:
Subject: Follow up with Alpert's Office

Thanks, Scott.

Scott/Hedy/Sandi/Bev:  Erik Letke heads up the retail marketing effort
underway in San Diego.  Marty Sunde wants Alpert to have an EES commercial
contact that she can talk to in the event she has further questions, etc.,
He'd like Erki to be the contact person.  Erik could you copy your vitals
(title, contact info) to Scott and Hedy Govenar and Sandi McCubbin so they
can forward along to Alpert?

Erik, seems that it would be useful if the customer letters to Alpert could
make the following points (folks please weigh in and add/subtract/modify if
needed):

The customer's glad to have had the option to take Direct Access service from
Enron because having the opportunity to take advantage of the offer has made
the customer better off.
Direct Access is an extremely important option that customers need, want and
should have going forward.
Any "solution" that the Legislature comes up with must therefore include the
continuation of Direct Access for all customers.
As such, the Legislature should immediately fix AB 1X to make sure that
Direct Access remains a permanent fixture of California's energy strategy.
Direct Access customers should not be forced to pay for DWR's power purchase
costs, since Direct Access customers aren't benefitting from those purchases.

Best,
Jeff

	Scott Govenar <sgovenar@govadv.com>
	03/19/2001 04:01 PM

		 To: Jeff Dasovich <jdasovic@enron.com>
		 cc:
		 Subject: Dede

As discussed, customers should send letters to Dede as follows:

The Honrable Dede Alpert
California State Senate
State Capitol, Room 5050
Sacramento, CA 95814

Interested companies should copy:  "Honorable Members of the California
State Legislature" and fax or mail me a copy for further distribution.
My fax is (916) 448-0816 and my address is 1127 11th Street, Suite #400,
Sacramento, CA 95814.

Scott


Roger --

As we talked about yesterday, we need to make a determination as to whether
to file rebuttal testimony in the latest round of the PG&E hydro case.  The
sooner we make this determination the better so that MRW will have
sufficient time to conduct any necessary discovery and hone their
preliminary analysis.

On the issue of valuation, there are now basically two "numbers" which have
been presented to the Commission for consideration.  The TURN/ORA analysis
sticks with their $2.7 billion valuation (credited to the TRA), with 100% (
or something close there to) of the ongoing profits from the operation of
the facilities (by PG&E) to be flowed through to ratepayer.   PG&E (using
Lehman Brothers) has also conducted a DCF analysis which results in a market
value range of $3.7 to $4.5 billion (the analysis was done based on an
assumed date for the transaction was January 1, 2001).  The testimony states
that the range of $3.9 to $4.2 billion is most reflective of the valuation
which likely bidders would pay in  a competitive auction.

The preliminary analysis done by MRW (which you should have received via
e-mail late in November), resulted in a current market value of the assets
being $4.7 to $4.9 billion.  MRW utilized the ORA/Turn model but revised the
underlying price forecasts and the assumptions regarding ancillary services.

Given the way the Commission is leaning these days (as represented by the
recent PD on Mohave), there is a good chance that PG&E will not be allowed
to auction off these assets, but must retain them.  Therefore, the issue
then becomes does the Commission go with a low valuation, with ongoing
profits going to ratepayers (as proposed by TURN/ORA), or do they go for a
high valuation, which would allow PG&E to make the valid argument that
ongoing profits go to shareholders.

The rest of the parties in the proceeding are not focusing on the valuation
as much as they are market power and environmental issues.  In other words,
the likelihood of alot of opposition coming in on the TURN/ORA proposal is
very low.  If we are of the opinion, that the valuation should be high (even
if the assets remain with PG&E), then we need to do some rebuttal.

If you would like me to set up a conference call early next week with MRW
and anybody at Enron you think should be involved, let me know.  Given that
the holidays are only a couple of weeks away, we did to reach some
conclusions pretty fast.

Jeanne


Approved.

---------------------- Forwarded by Rod Hayslett/FGT/Enron on 12/13/2000
05:05 PM ---------------------------

Tracy Geaccone
12/13/2000 04:33 PM
To: Rod Hayslett/FGT/Enron@ENRON
cc:

Subject: Expense Report

For your approval.

Thanks

Tracy
---------------------- Forwarded by Tracy Geaccone/GPGFIN/Enron on 12/13/2000
04:34 PM ---------------------------

Kathy Campos
12/13/2000 03:47 PM
To: Tracy Geaccone/GPGFIN/Enron@ENRON
cc:

Subject: Expense Report

Tracy,

Attached is your expense report, please review and forward for approval.

Thanks,
Kathy


I assume the "Mark" below means you.  Also, I wanted to get your straight-from-the-horse's-mouth opinion on EOL clearing services and the attendant CFTC issues.  Let's talk later today, if you're in.

Thanks,
Brad

-----Original Message-----
From: Kitchen, Louise
Sent: Monday, October 22, 2001 9:29 AM
To: Richter, Brad
Subject: Just so you know

John Arnold asked me this morning about individuals on EOL.  Apparently,. John was told that I had a problem with this.  I haven't had a conversation on this since 1999,. At that time I sidelined the issue as it was complex, bearing in mind everything else that was going on.  I would suggest you and Mark address tis together.
I have no idea who told John this as I haven't had a dizcussion on this issue since 1999.
Louise
--------------------------
Sent from my BlackBerry Wireless Handheld


Ben

Here is the most recent version of the coal presentation.

Let me know if you have any questions.

Rebecca
x57968


yep, it makes me cough

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 9:19 AM
To:	Maggi, Mike
Subject:	RE:

i still don't like you.  are you wearing that stupid patch today?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 9:18 AM
To:	Nelson, Michelle
Subject:	RE:

just kidding

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 9:17 AM
To:	Maggi, Mike
Subject:	RE:

why?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 9:16 AM
To:	Nelson, Michelle
Subject:	RE:

damn fred

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 9:14 AM
To:	Maggi, Mike
Subject:	RE:

i do remember that.  i don't know.  probably not until next year.  fred doesn't want me to go until then.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 9:13 AM
To:	Nelson, Michelle
Subject:	RE:

so when are you going to ny

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 9:13 AM
To:	Maggi, Mike
Subject:	RE:

hmmm.  i thought that i was very nice.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 9:11 AM
To:	Nelson, Michelle
Subject:	RE:

you werent exactly innocent

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 9:09 AM
To:	Maggi, Mike
Subject:	RE:

i think that i am funny and you know what i'm talking about.  that's why you asked if kori was here.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 9:07 AM
To:	Nelson, Michelle
Subject:	RE:

i dont know what the heck you are talking about, and thank you for calling it babbling

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 9:03 AM
To:	Maggi, Mike
Subject:

i was just playing.  so do you remember what you babbled to me on friday?


No, he is in fact commercial doing deals negotiating transactions of significant size, 2.5 B this year alone.
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


---------------------- Forwarded by Chris Germany/HOU/ECT on 12/27/99 11:21
AM ---------------------------

pdrexel@columbiaenergygroup.com on 12/27/99 08:56:00 AM
To: Dan Junek/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT
cc:
Subject: JANUARY 2000 NEEDS

---------------------- Forwarded by Paul Drexelius/CES/ColumbiaGas on 12/27/99
09:01 AM ---------------------------

KIM NOVSEK BIZIK
12/27/99 08:43 AM

To: Morgan Sharifi/CES/ColumbiaGas@ColumbiaGas, Dale Ray
East/CES/ColumbiaGas@ColumbiaGas, Phil Villagomez/CES/ColumbiaGas@ColumbiaGas,
Darren Espey/CES/ColumbiaGas@ColumbiaGas
cc: Marianne Stiles/CES/ColumbiaGas@ColumbiaGas, Joanne
Swogger/CES/ColumbiaGas@ColumbiaGas, Noel Bartlo/CES/ColumbiaGas@ColumbiaGas,
Paul Drexelius/CES/ColumbiaGas@ColumbiaGas
Subject: JANUARY 2000 NEEDS

Good Morning.  I have listed my needs below for all but Peco.
The red can be off Anr or Tgt.  Please advise.
The green is done - just need the activity number.
I have also included my nom deadline - I have a nom due today - LILCO.  Please
advise.

ANR
 CG&E- deliveries to Springboro 1550 dth/day LDC Nom Deadline is
12:30 on the 30th - note this can be served off TGT

Tetco
 BUG  145 dth/day LDC Nom Deadline is noon on the
29th
 Con Ed 261 dth/day  (estimate ONLY) LDC Nom Deadline is 2
pm on the 30th
 PECO
 PA Gas
 PSEG  1696 dth/day LDC Nom Deadline is 10 pm on the 29th
 Etown  23 dth/day LDC Nom Deadline is noon on the
29th
 NJN  7528 dth/day LDC Nom Deadline is 12:30 est on
the 30th

CNG - PA gas for PECO /day  (If we have a problem flowing this much,
please let me know as soon as possible so we can buy delivered gas to PECO's
gate from one of the other suppliers)

Transco
 LILCO  382 dth/day    (capacity release is also for
382) LDC Nom Deadline is noon on the 27th
 PSEG  189 dth/day LDC Nom Deadline is 10 pm on the
29th
 S Jersey  113 dth/day Transco nom must show Enduser # 012224 to
be confirmed- LDC Deadline is 12:30 on the 30th
 Piedmont 1113 dth/day LDC Nom Deadline was 10:30 est on
the 22nd - just need activity number now
 PSNC  190 dth/day (CES will get the capacity release for
this from PSNC)
   The supply will be from PSNC's pool #7620 (this is
their station 85 pool)

Texas Gas
 DP&L  1298 dth/day  LDC Nom Deadline is
12:30 est on the 30th
 CG&E  1550 dth/day LDC Nom Deadline is 12:30 on
the 30th - note this can be served off TGT


Hi, Russell:

Attached for review is the draft of the proposed fee letter in connection with the Torch deals.  Let me know if you have any questions or comments.

Thanks!

Marie


Sorry this is so late... work got in the way of the pool.


Hi Tom-

I'm with Enron in Portland, OR.  I graduated from Thunderbird in 1986  .... and went to school with a Tom Barkley ... Is that you or just the same name??? Please let me know.  Thanks. Mike Swerzbin


Yes,

 -----Original Message-----
From: 	Forster, David
Sent:	Friday, September 14, 2001 8:23 AM
To:	Tycholiz, Barry
Subject:	RE: Origination Track Meeting

Yes; Monday at 10:00.

Will you be able to make that time?

Dave

 -----Original Message-----
From: 	Tycholiz, Barry
Sent:	Friday, September 14, 2001 8:20 AM
To:	Forster, David
Subject:	RE: Origination Track Meeting

Dave. is this the meeting time on monday?

BT

 -----Original Appointment-----
From: 	Rode, Tina   On Behalf Of Forster, David
Sent:	Wednesday, September 12, 2001 2:50 PM
To:	Luce, Laura; Tycholiz, Barry; Vickers, Frank W.; Lagrasta, Fred; Redmond, Brian; Baughman, Edward D.; Lemmons Jr., Billy; Bland Jr., Ted C.
Subject:	Updated: Origination Track Meeting
When:	Monday, September 17, 2001 10:00 AM-11:00 AM (GMT-06:00) Central Time (US & Canada).
Where:	EB3530


I have prepared a master Firm Purchase/Sale Agreement for Enron LNG.  Can you
provide me with the name of person at Enron LNG I should direct this to?

Thanks for you help.

Debra Perlingiere
Enron North America Corp.
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


I just sold intra day gas to CES on CGAS and CNG.  The CGAS deal is number
250938, the volume is 257, the delivery point is BG&E, and the price is
$3.53.  This deal is for 1 day only.  The CNG deal is 250897, the volume is
51 to NIMO East and 211 to Peoples, and the price is $3.60.

Thanks


---------------------- Forwarded by Darron C Giron/HOU/ECT on 03/02/2001
09:46 AM ---------------------------
From: Veronica Espinoza/ENRON@enronXgate on 03/02/2001 09:36 AM
To: Janie Aguayo/HOU/ECT@ECT, Diane Anderson/NA/Enron@Enron, Derek
Bailey/Corp/Enron@ENRON, David Baumbach/HOU/ECT@ECT, Jean Bell/HOU/ECT@ECT,
Patricia Boulanger/CAL/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Debbie R
Brackett/HOU/ECT@ECT, William S Bradford/ENRON@enronXgate, Lesli
Campbell/ENRON@enronXgate, Celeste Cisneros/NA/Enron@Enron, Sharon
Crawford/CAL/ECT@ECT, Richard Deming/NA/Enron@Enron, Russell
Diamond/ENRON@enronXgate, Cindy Feldman/CAL/ECT@ECT, Darron C
Giron/HOU/ECT@ECT, Veronica Gonzalez/ENRON@enronXgate, Jeffrey C
Gossett/HOU/ECT@ECT, Walter Guidroz/ENRON@enronXgate, Larry Joe
Hunter/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Errol
McLaughlin/Corp/Enron@ENRON, Nidia Mendoza/ENRON@enronXgate, Kevin
Meredith/Corp/Enron@ENRON, Tom Moran/ENRON@enronXgate, Leslie
Reeves/HOU/ECT@ECT, Tanya Rohauer/ENRON@enronXgate, Dianne Seib/CAL/ECT@ECT,
Linda Sietzema/CAL/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Ellen
Wallumrod/NA/Enron@ENRON, Melinda Whalen/CAL/ECT@ECT, Tiffany
Williams/NA/Enron@Enron
cc:
Subject: Credit Report--3/2/01


John:
?
Hope you did ok today. As I said yesterday, the poor close  Monday should
lead to additional market weakness, which we saw  today.
?
You indicated that you would mail the service agreement back  to me.? I don't
know if you have the mailing address, so here it  is:
?
Psytech Analytics
11604 Greenspring Ave.
Lutherville, MD? 21093
?
Speak to you soon.? I'll call when I have?the next  decent set-up on my work
for natural.? Feel free to buzz me  anytime.
?
Mark


Sandy please add Mark McConnell and Paul Y'Barbo to the Caminus Zai*net users list per Kim Watson's request.

Thanks

Vince Strohmeyer
713.853.6701

Paul and Mark,

You should be able to get into the Caminus system as outlined below, after you have been added to the user group.

To initiate the installation of the Caminus Zai*Net application, the users should perform the following:

Click Start button
Click Programs menu
Click Business Applications menu
Double click the Caminus ZaiNet option

After you reboot your system, you will be able to log in to Caminus Zai*net.  Your User ID is your first and last initials, followed by the numbers "01" (e.g. Fred Flintstone would be FF01), and your initial password is "password".  You will be prompted to change your password on initial log in.

Thanks,
Vince Strohmeyer

713.853.6701


Please click on the link below to view the articles below:- 1. Energy & Power Risk Management, "The essence of e-commerce"; 2. Energy & Power Risk Management, "IT capabilities a la carte"; 3. Energy & Power Risk Management, "Taking the direct route"; 4. Energy & Power Risk Management, "The secret of their success";

16-Nov-2001 The essence of e-commerce Energy & Power Risk Management 108392 <http://livelinkeu.corp.enron.com/LiveLink/LiveLink.exe?func=doc.Fetch&nodeId=2454526>