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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Approve 52%
Disapprove 38%

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

Poor job 49%
Good job 38%

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

Oppose 42%
Favor 38%
Unsure 20%

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

GOOD THING BAD THING NO OPINION

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

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

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

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

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

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

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

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

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

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

% FROM
May 30 May 29 12-00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

FITCH PLACES INDIA ON NEGATIVE RATING OUTLOOK ON FISCAL CONCERNS

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

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

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

Thomas E. White becomes Secretary of the Army

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

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

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

Some light at last!

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

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

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

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

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

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

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

California Lawmakers Eye Billing Businesses for Edison Rescue
By Jason Leopold

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

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

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

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

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

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

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


POWER MARKETS 2002: RISK AND REWARD

APRIL 17-18, 2002 o EXCALIBUR HOTEL o LAS VEGAS, NV

CLICK HERE TO DOWNLOAD A COMPLETE CONFERENCE BROCHURE:
http://www.pmaconference.com/markets2002.pdf

We will see record numbers of new powerplants coming on line this year. New, much larger RTOs promise dramatic increases in liquidity. The Enron fallout will continue to force balance sheet improvements-- perhaps more mergers and acquisitions. Price volatility will continue, and risk management techniques will continue to be honed.

TOPICS INCLUDE

TRANSMISSION AND RTOS
Representatives from PJM, Cal ISO and Midwest ISO on their respective regions.

INSURANCE
Scott Ettien from NCM, Lynda Clemmons from Element Re and Pat Toner Goudarzi
from ACE, on Credit Insurance, Weather-risk Insurance and Innovative Insurance Products, respectively

EXCHANGES
Monte Simpson of InterContinental Exchange and Brad Leach of NYMEX on the
growth in the use of exchanges.

CREDIT
Susan Abbott of Moody's on evolving credit standards in our industry

MARKETS
Kevin T. Howell of Dominion, Dave Freeman of Panda and Mike Young of Aquila on the state of various aspects of the power markets.

AND MORE!
Cabell Poindexter of Wyndham Mills on job prospects! John OBrien of Skipping Stone on the outlook for Transmission! Henwood on outlook for powerplant construction! Adrian Palmer of Caminus Corp on European Markets!

FEATURING EXPERTS FROM:

Dominion Energy
Panda Energy
Aquila, Inc.
Moody's Investor Services
Skipping Stone
NYMEX
California ISO
Intercontinental Energy Exchange
NCM Americas
Henwood Energy Services
Element Re
Caminus Corporation
Wyndham Mills International

FUNDAMENTALS OF POWER MARKETING:  APRIL 16

On April 16, Scott Spiewak will be repeating his "Fundamentals of Power Marketing" preconference seminar. Essential for the new industry participant, it is also a valuable overview for the industry professional.

Click Here to Download a Complete Conference Brochure:

http://www.pmaconference.com/markets2002.pdf

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request, by PowerMarketers.com.

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The first quarter of 2001 was a record quarter for the performance of the
businesses under the Enron Global Markets group.  We posted a gross margin
number of $100 million for the first quarter.  This represents a 38% increase
in gross margin after a very successful Q1 of 2000.  When combined with
outstanding results posted in December of 2000, EGM has contributed over $187
million to the Wholesale group in the last 4 months.  This was due to
tremendous contributions from each business group.

In order to keep the momentum going and to facilitate more growth, the
following changes and additions have been made within the organization.

Crude and Products group
Mid-marketing
Bill Berkeland has joined the group and is responsible for creating a focused
mid-marketing function specifically within this group.  Fred Lagrasta is
responsible for mid-marketing for Enron Americas and still maintains some
responsibility for various contacts and deal flow as well.  The purpose of
this group is to be very focused in the development of crude and product
specific products and services.  This group reports to Randy Maffett.

Origination
In order to manage the increased origination opportunities around the world,
the Origination group has been changed in order to insure that the proper
focus is placed on these opportunities and to manage its wide scope.  Doug
Friedman will lead our NGL and Petchem origination efforts reporting to John
Nowlan.  Joining Doug will be Rick Cantrell recently hired from Union
Carbide.  The global crude and products origination group has added Randy O,
Conner from Red Meteor, who has extensive experience in these markets.  Both
Randy and Doug Leach,s growing fuels origination group will report to Randy
Maffett.

Trading
Lee Jackson will assume the role of U.S. NGL,s lead financial trader,
supported by Chad South.  The petchem and plastic trading businesses have
been reorganized under Stuart Bland.  Alan Engberg will be responsible for
plastics trading in the Americas.

Shipping
Scott Moncrieff will assume responsibility of our global shipping network
related to crude and products.  Scott will be charged with expanding all
aspects of the shipping portfolio taking advantage of our growing presence in
these markets and the successes we have had marketing shipping on line.

Weather
The weather group under Mark Tawney,s direction is expanding its efforts
around the world.  Europe will have an expanded focus and the London office
will focus on new opportunities in Europe.  Paul Murray has joined Enron from
Castlebridge Partners and will be moving to London to develop and expand the
continental opportunities.  Ross McIntyre, currently based in London, will
report to Paul.  Bill Windle has joined the weather group and has
responsibility for origination activities for North America.  Bill,s most
recent assignment has been in the EBS organization.  The Oslo weather office
managed by Thor Lien will have responsibility for Scandinavia weather
activities.  In addition, employees are being added in the Australia and
Japan regions.  We are now making markets in 32 cities around the world on
EnronOnline.

Coal
Mark Schroeder has joined the coal group and is responsible for origination
activities with generators in the U.S.  Mark,s most recent assignment was as
the head of all regulatory activities for Enron Europe, Japan and Australia.

Enron Japan
The momentum of power deregulation process has slowed in Japan.  The decision
has been made to scale back the wholesale power activities.   Joe Hirl,
President and CEO of Enron Japan, will now report into the EGM organization.
Joe will maintain his direct responsibility of the office and will be
increasing his focus on the business lines within EGM.  All of these products
have high growth potential in both the near and long-term and he will
coordinate and help implement with all the business lines and their
activities.

LNG
LNG continues to expand with the vision to increase the number of
transactions and create a portfolio of assets and contractual access around
the world.  Jonathan Whitehead has joined the LNG group and has
responsibility for all trading and shipping activities.

Neal Gerstandt, previously an independent energy consultant,  Jared Kaiser,
from Enron Americas - East Gas Desk, and Kurt Lindahl, from Enron Global
Assets, have also joined the LNG group with responsibilities in the area of
origination in the Western Region.

Enron Freight Markets
EFM has concluded over 2,000 transactions in its first two months.  Chris
Kravas continues to focus on building the spot trading and mid-market
capabilities that will enable it to be the dominant player in its market, and
has hired four new traders in the last two weeks.  Kellie Metcalf, from EBS,
has joined Shawn Cumberland's origination effort, and Deirdre McCaffrey, from
Gas Structuring and Mid-Market, has joined Matt Arnold's forward trading
group focusing on diesel products.

Global Risk Markets
David Hoog joined Enron from Ace Insurance in December 2000 and has quickly
built a team of people specialized in trading unit contingent power price
call options, a hybrid insurance derivative product. Drawing on Ace and Enron
resources, this team is based in New York and includes Alex Tartakovski and
Larry Marcus from Ace, as well as Joana Bekerman and Tony Chang who recently
moved to New York from Houston. Their first transaction closed just 3 months
after startup.

Brad Blesie will be moving to London in June to establish a base of operation
for GRM and expand our insurance derivative activities into the European
market place. Among the opportunities he is currently exploring are
contingent call options applied to shipping and charter rates, trading
insolvent insurance claims, and combining North Sea oil and gas VPP risk with
decommissioning insurance.

In April this year, EGM established a hedge fund origination effort in New
York reporting to Per Sekse and led by Russell Dyk who recently moved to New
York from LNG in Houston. Russell is responsible for expanding our commodity
trading relationship with hedge funds to include crude oil, products, liquids
and other commodities traded by EGM. Joining Russell in this effort is
Stephen Plauche, who comes to us from Enron Americas, power trading desk.

Financial Trading
Elsa Piekielniak has assumed responsibility for Enron,s developing
agriculture business.  Billy Lemmons has changed groups and now runs the
Analyst and Associate program for Enron Corp.

Please congratulate everyone on their new assignment and we look forward to
the continued growth in all the EGM businesses.


Carol St Clair has confirmed for me that the GTC does not contemplate a
'Correction for Prices'. John Suarez states that corrected prices must be
'flagged' by the ISO with 75 minutes of publication and must be changed
within 5 days. Since the GTC doesn't contemplate the issue and the mechanism
is different from ISDA,  I have added some suggested language to the Index,
as we should contemplate this issue in the Long Description.

My apologies for not having the attachment included in my last e-mail.

Dale

---------------------- Forwarded by Dale Neuner/HOU/ECT on 06/05/2000 11:14
AM ---------------------------
Dale Neuner   06/05/2000 10:13 AM

To: Leslie Hansen/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
cc: Eric Saibi/Corp/Enron@ENRON
Subject: US East Power Financial Swaps

The East Power traders would like to commence transacting on financial swaps.
We had anticipated this, so the Product Type was already built and has been
approved. The Index and Loadshape built with this Product were done so based
on comments from John Suarez (the trader), who has approved the attached.

Leslie - please offer commets/suggestions from the power perspective.

Mark - final approval will need to come from you since this is a financial
product.

Also, trading wants us to consider price changes for the Product because the
prices published do change from time to time. I know that the ISDA
Definitions contemplate a 30-day true-up, but I can't find a like provision
in the GTC. So - I took a hack at some language to contemplate the issue:

"If the price published (as set forth herein) on any day during a
Determination Period is subsequently corrected and the correction is
announced within 30 calendar days of the original publication date, the
parties agree that the corrected price shall take affect as if it were the
price published on the original publication date and the Floating Price will
be adjusted accordingly. Payments of the adjusted Floating Amount will take
place 5 business days following notification by either party of a change to a
published price."

Dale
3-9746


How come it doesn't work on my eol machine?


what is you msn name ?

 -----Original Message-----
From: 	Scott, Susan M.
Sent:	Thursday, March 14, 2002 12:09 PM
To:	Quigley, Dutch
Subject:	RE:

thx....i just email/sent my resume to someone there....a PWC guy's friend

 -----Original Message-----
From: 	Quigley, Dutch
Sent:	Thursday, March 14, 2002 12:07 PM
To:	Scott, Susan M.
Subject:	RE:

pual buachman is the trader , can not say that i know him though

 -----Original Message-----
From: 	Scott, Susan M.
Sent:	Thursday, March 14, 2002 12:07 PM
To:	Quigley, Dutch
Subject:	RE:

gotcha...hey, who do you know at j. aron?

 -----Original Message-----
From: 	Quigley, Dutch
Sent:	Thursday, March 14, 2002 12:05 PM
To:	Scott, Susan M.
Subject:	RE:

can not say that i am , i just have so things up i hate to think of another

 -----Original Message-----
From: 	Scott, Susan M.
Sent:	Thursday, March 14, 2002 12:04 PM
To:	Quigley, Dutch
Subject:

are you anti-MSN....because that one works pretty consistently

 -----Original Message-----
From: 	Quigley, Dutch
Sent:	Thursday, March 14, 2002 12:03 PM
To:	Scott, Susan M.
Subject:	RE: I hate yahooooooooooooooo

i join your anger

 -----Original Message-----
From: 	Scott, Susan M.
Sent:	Thursday, March 14, 2002 12:02 PM
To:	Quigley, Dutch
Subject:	I hate yahooooooooooooooo


OPEN Small Business NetworkSM
Fast financial decisions, and essential B2B services available 24/7. Get
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In his first State of the Union address, President Bush said that despite
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---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/12/2000
06:16 PM ---------------------------

Zimin Lu
09/28/2000 04:46 PM
To: Vince J Kaminski/HOU/ECT@ECT, William Smith/Corp/Enron@ENRON
cc: Stinson Gibner/HOU/ECT@ECT
Subject: Technical Corner Paper

Vince,

As you suggested, I splited the paper into two parts, the first one
devotes to the FX market and second one to gas market.  Attached
is the first part.

Let me know if there is any mistakes in there,  thanks.

Sam,

Vince wants to publish this article in the next Monday edition of the
research intelligence.
Thanks.

Zimin


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/13/2001
09:31 PM ---------------------------

Vince J Kaminski
04/13/2001 02:52 PM
To: kaminski@aol.com
cc:
Subject: Btu Weekly

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/13/2001
08:53 AM ---------------------------

"Btu" <subs@btu.net> on 04/12/2001 04:34:20 PM
To: "Btu Weekly" <>
cc:
Subject: Btu Weekly

Attached is the latest issue of Btu Weekly.

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

 - wg041601.pdf


WorldEnergyOnline.com, is happy to provide you with a free trial subscription
to Restructuring Today until December 12.

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 - RT#1.pdf


Attached in WordPerfect, at long last, are the final transaction
documents for Hawaii II.  These documents are marked to show minor,
clean up changes from the documents that were last circulated on the
closing date, November 20.  These changes are largely clean up in
nature.  Additionally, the Form of Swap Confirmation and waterfall in
the Trust Agreement were revised to cap the amount of money to be
swapped up to Enron Corp on payment dates other than the Final
Distribution Date, such that any amounts received by the Trust in excess
of an amount necessary to pay interest will be used to pay current yield
to the Certificate Hoder, and the remainder will be retained in the
Collection Account.  This change will only have any impact if the asset
is generating cash flow in excess of the amount due as interest on the
Notes.

Final closing binders will be distributed later this week.

The documents are identified as follows:

* Trust Agmt (265272)
* RADA (265275)
* Subscription Documents (265278)
* Facility Agreement (265273)
* Ex G1- TRS Confirm (268099)
* Ex G2 - Schedule (Permitted Swap Party) (265279)
* Ex G3 - Schedule (Enron) (266279)
* Ex H - Transfer and Auction Agmt (266163)
* Ex I, Part A - Amended and Restated LLC Agmt (266143)
* Ex I, Part B - Amended and Restated LLC Transferor (266137)
* Omnibus Amendment - McGarret A (266755)
* Omnibus Amendment - McGarret C (266950)
* Omnibus Amendment - McGarret D (267037)
* Omnibus Amendment - Danno B (267271)

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

 - 265272.wpd
 - 265273.wpd
 - 265275.wpd
 - 265278.wpd
 - 265279.wpd
 - 266137.wpd
 - 266143.wpd
 - 268099.wpd
 - 267271.wpd
 - 267037.wpd
 - 266950.wpd
 - 266755.wpd
 - 266279.wpd
 - 266163.wpd


Yeah.. Willy thinks that would be better so we could feed the kids too! So
I'll ask for 7-12....

> -----Original Message-----
> From: Elizabeth.Sager@enron.com [SMTP:Elizabeth.Sager@enron.com]
> Sent: Wednesday, May 30, 2001 4:13 PM
> To: Brock, Alex
> Cc: 'liz'
> Subject: Re: kate's wedding
>
>
> Hi
>
> Sounds great - what do you think about 7-11 or 12 so the kids can "watch
> the sun set, too"
>
>
>
>
>                     "Brock, Alex"
>
>                     <abrock@PoloRalphL        To:     "'liz'"
> <elizabeth.sager@enron.com>
>                     auren.com>                cc:
>
>                                               Subject:     kate's wedding
>
>                     05/29/2001 03:10
>
>                     PM
>
>
>
>
>
>
>
>
>
>
> Liz-
> Willy and I were thinking we would get a sitter from 5pm-11pm on Saturday
> night for Sam , Ella and Lucy. What do you think?? The agency charges a
> $ 30.00 flat fee and then anywhere from $10- $15 an hour after that.
> Alex Brock
> 212 6504521
>
>
>


i like miss +10.5, iowa st, and ark

 -----Original Message-----
From: 	"Marcantel MM (Mitch)" <MMMarcantel@equiva.com>@ENRON
Sent:	Wednesday, October 24, 2001 12:46 PM
To:	Lenhart, Matthew
Subject:	the lines

What do you like this week?
CF 95 10/27 (F) MISSISSIPPI AT LSU (9:00 pm ET) MISSISSIPPI +10.5  LSU -10.5

CF 35 10/27 (F) IOWA ST AT TEXAS A&M (2:00 pm ET) IOWA ST +6.5  TEXAS A&M
-6.5
CF 23 10/27 (F) AUBURN AT ARKANSAS (12:30 pm ET) AUBURN -1.0 ARKANSAS +1.0

Thanks,

Mitch Marcantel

SAP Application Services
 1100 Louisiana St. 808B
 Houston, TX 77002
 Phone: 713.277.8511 Fax: 713.277.8551
 Pager: 800-759-8888 pin1528390
            1528390@skytel.com


Please accept this invitation to the VAR Brown Bag Session, facilitated by Frank Hayden.  Attendance is mandatory and lunch will be provided.

Accepting this invitation, will allow the VAR Brown Bag Session to automatically populate on your individual schedules.

Thank you


FYI- Terry is trying, at least with me.
---------------------- Forwarded by Richard Shapiro/HOU/EES on 02/10/2000
06:04 AM ---------------------------

Terence H Thorn@ENRON_DEVELOPMENT
02/10/2000 12:17 AM
To: Richard Shapiro@EES
cc:
Subject: Stamp Tax Dispute

We used the BIT threat once before when they tried to re-trade TGS's rates in
violation of the sales agreement. George Wasaff  can give you all of the
details. This time we may have to go all of the way and litigate.  Tax issues
in Argentina have also killed trading.  The problem is that the constitution
empowers the states with all kinds of taxing authority so if you want changes
in policies you have to have a constitutional amendment.  You can imagine the
eagerness of politicians to take on that battle.

I will be setting up some quality time with you the week of the 21st.  Again,
congratulations. This is an exciting and complex part of the world and I
can't think of anyone better to bring some focusand results here.
---------------------- Forwarded by Terence H Thorn/ENRON_DEVELOPMENT on
02/10/2000 12:10 AM ---------------------------

Robert C Williams
02/09/2000 02:44 PM
To: Terence H Thorn/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Michelle Blaine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Laurie
Lee/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Stamp Tax Dispute

Terry, here is the summary of the dispute.  Let me know if you would like any
additional information, or if would would like me to put this into memo
form.

Argentine law imposes a stamp tax on written contracts.  In the past several
years, the provincial governments of several of the provinces have, in an
effort to raise desperately needed revenues, adopted a new and broader
interpretation of the tax's application.  These provinces--Rio Negro,
Neuquen, and Santa Cruz--have sought to apply this interpretation
retroactively, resulting in the imposition of staggering assessments.  For
TGS, the Enron company (40% owned) most affected, the assessments total $153
million in taxes, $172 million in interest, and $208 million in fines.  (See
attached chart for breakdown).

To date, court challenges to the taxes have been unsuccessful.  TGS has
pending before the Argentine federal Supreme Court an application to declare
the taxes unconstitutional and unlawful, but the Court has, as yet, not
acted.  Meanwhile, the provinces are free to attempt to collect the taxes, by
levy if necessary.

The federal government has, in documents filed in another case, expressed the
view that the imposition of stamp taxes in the manner folowed by the
provinces is illegal.  Energas has also expressed its view that the taxes are
illegal.  The federal Supreme Court, however, has recently denied an
application (filed by another company) to enjoin collection of the taxes.

On November 23, 1999, Enron notified the federal government that it regarded
the imposition of these taxes as in violation of the Bilateral Investment
Treaty between Argentina and the U.S.  Since that notification,
representatives of Enron and the government have held several meetings.
Substantive discussions, however, have not yet begun.  The Treaty mandates a
six-month cooling off period before arbitration can be initiated.  If the
negotiations with the government are unsuccessful, Enron intends to file an
arbitration with the International Center for the Settlement of Investment
Disputes (ICSID) in Washington, D.C.  By way of information, Endesa currently
has an arbitration underway at ICSID challenging the taxes, presumably under
a BIT between Spain or Chile and Argentina.


Steph, further to our discussion, Pls review.  I took a quick look at the locations and most appear to be East based.  You might want to use an analyst to figure this out. Also, they have valued the inventories off of the Nymex only ( or so it appears) and I would have to believe that the value of these molecules is materially different than this.

Pls review and let's discuss asap.

BT

 -----Original Message-----
From: 	Bradford, William S.
Sent:	Monday, September 24, 2001 9:45 AM
To:	Tycholiz, Barry
Cc:	Tribolet, Michael
Subject:	FW: Gas Inventories

Barry,

Let me know if you have any time to review.

Bill

 -----Original Message-----
From: 	Hermanson, Todd
Sent:	Thursday, August 30, 2001 11:59 AM
To:	Bradford, William S.
Subject:	Gas Inventories

Bill -

I have attached a breakdown of our gas inventories by location.  The valuations have not been updated to take into account the downward move in gas prices.

When we meet with you here in Purchase we would like to this to be one of the topics of discussion.  If you need any additional information (or more detail), please let me know asap.

Todd


---------------------- Forwarded by Sara Shackleton/HOU/ECT on 09/30/99 09:04
AM ---------------------------

Brian Swinford@ENRON_DEVELOPMENT
09/30/99 08:26 AM
To: Sara Shackleton@ECT
cc:
Subject: ISDA

Sara,

Bruce Harris gave me you name as a contact for getting a copy of Enron's
approved ISDA documentation.  I am looking a helping our 50% owned
subsidiary, CIESA do an interest rate swap to fix rates on its $220MM
floating rate note agreement.  The existing swap which was done in 1997 runs
off on 10/22/99.  The tax department here at Enron (South America) have asked
me to let them review any swap documentation we plan on entering into
beforehand so they can look at any tax issues (i.e., tax law changes that may
have occured since the last swap was done).

I am not sure what documentation was used the last time around - I have asked
the financial folks at TGS which manages the CIESA FRN on behalf of Enron and
Perez Companc to send me a copy of whatever documentation was used before as
a starting place but haven't heard back from them.  Do you happen to have any
information on the previous swap?

I am on my way to Dallas for the day.  I will give you a call tomorrow to
check in.  Thanks.

BRS


The Index for a month shall be the arithmetic average of the high and low
prices per Short Ton for such calendar month
of 26 Lb. Semichemical Medium, stated in U.S. Dollars, delivered in the
Eastern U.S., published under the headings:
"Price Watch: Paperboard/Packaging: Grade: Corrugating medium (26-lb):
Semichemical, East" in the issue of Pulp &
Paper Week that reports prices effective for such calendar month.


Yea, I'm picking up 2 tix today....hopefully.
John

Jennifer Burns

10/09/2000 10:38 AM

To: John Arnold/HOU/ECT@ECT
cc:
Subject: Hmmmmm........

J. Arnold-

Hey - It's me!  Any luck with the tickets?????  Just curious if there any way
I can get four tickets instead of two?  I know I'm asking alot but I really
appreciate it.  You know how much I love the Counting Crows and last time
they were in town someone was going to take me but the plans fell
through..........Thanks!!!!!!!

Jennifer


Well you do look good in those pants...maybe too good.  To finish off the
outfit you will need the leopard print cowboy hat.  My flight on America West
2275 (Phoenix to Houston) arrives at 7:30 at Terminal B (IAH).  I am assuming
you will be picking me up with the new hat on.  Don't forget to bring your
suit you little hottie.

Susan M Scott
07/27/2000 01:49 PM
To: Ted Noble/HOU/ECT@ECT
cc:
Subject: Re: Alternative to a .com luau

Okay, okay...The real Susan is back.  So, do you think I should sport the
leopard pants to the party?

By the way, your personal taxi service is on call Sunday  so just let me know
when you need to be picked up (you're flying out of intercontinental, right?).

Ted Noble
07/27/2000 01:31 PM
To: Susan M Scott/HOU/ECT@ECT
cc:
Subject: Re: Alternative to a .com luau

Who is this girl pretending to be Susan?

Susan M Scott
07/27/2000 12:23 PM
To: Ted Noble/HOU/ECT@ECT
cc:
Subject: Re: Alternative to a .com luau

Look at you trying to bring me out of my shell.  I don't know if I'm really
ready though to meet so many new people.  Remember...I am a shy, retiring
wall-flower.


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Leading Indexes(as of 11/20/2001 11:00 hours ET)   http://moneycentral.msn.com/investor/market/leading.asp

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Name                                LEVEL       CHANGE      %Change
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S & P 500 Index                     1,145.79    -5.27       -0.46%
Nasdaq Composite Index              1,907.73    -26.69      -1.38%
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Market Summary (as of 11/20/2001 11:00 hours ET)  http://moneycentral.msn.com/articles/common/summary.asp

Market slips lower
Provided by MSN Money

Forget the bulls and bears. So far today, the blahs are in charge.

The Big 3 indexes have been in the red most of the morning, but all by less than 1% with relatively few shares changing hands.

So far, the much-anticipated run to Dow 10,000 -- so tantalizingly close after Monday's close, hasn't materialized. Perhaps a late-day run is in the works. Or perhaps the l-triptophan is kicking in a little early this Thanksgiving week.

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This email was sent to:  kim.ward@enron.com


Ed:  In case you are wondering about Cargill-Alliant.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 04/12/2001 03:01 PM -----

	Mara_Alexander@cargill.com
	04/12/2001 12:15 PM

		 To: Sara.Shackleton@enron.com
		 cc:
		 Subject: RE: guaranties

Dear Sara,

Thanks for your agreement to the Set-Off language.  Do you have some
insights I can pass on to our attorney, who was wondering about the
reason behind the language in Part 5(B), the second Set-Off paragraph?

I had forwarded your comments to our Credit Manager, Andrzej
Kabarowski,
who works with our Corporate Treasury on the Cargill guarantees, but
have yet to receive a response.  I have, however, learned that our
Corporate Treasury has begun implementing a revised guarantee format
(and I am told they are absolutely inflexible about the new language).
We're trying to ascertain whether guarantees are also changing for
Cargill-Alliant, which is a joint venture rather than a subsidiary.
I will advise as soon as I know something definitive in this regard.

Unfortunately, it looks as though this Agreement will need to remain
in the "pending" stack for a little while longer.

Regards,
Mara Alexander
Cargill, Incorporated
Tel: 952.984.3417
Fax: 952.984.3872
e-mail: Mara_Alexander@Cargill.com

-----Original Message-----
From: Sara.Shackleton@enron.com [mailto:Sara.Shackleton@enron.com]
Sent: Monday, April 09, 2001 5:20 PM
To: alexander, mara /xtwn
Cc: Edward.Sacks@enron.com
Subject: guaranties

Mara:

Attached are blacklined versions based upon Cargill's comments to both
the
Enron Corp. and Cargill, Incorporated which I received from Ed Sacks.
Please note that I added a comma to guarantor's name in the Cargill,
Incorporated guaranty since that is how we executed the Cargill,
Incorporated ISDA Master Agreement.

Also, your change to the setoff language is fine.

Let's try to agree to everything this week.  Thanks.

(See attached file: ENEguarantyCargillR1.doc)(See attached file:
CargillguarantorR1.doc)

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Anita,

There is a delivery nom of 22 @ the above mentioned meter for 1/99
production.  This is a receipt meter.

Can you please explain the purpose of this delivery nom being @ this receipt
meter?  I also have the same situation @ 98-2662 for 1/99.  Also, this
activity is continuing on into 2/99.

Clem Cernosek expressed that these delivery noms are causing errors on his
end of the spectrum.

---------------------- Forwarded by Jackie Young/HOU/ECT on 02/04/2000 02:31
PM ---------------------------

Lauri A Allen
02/04/2000 01:13 PM
To: Jackie Young/HOU/ECT@ECT
cc: Daren J Farmer/HOU/ECT@ECT, Pat Clynes/Corp/Enron@ENRON
Subject: Meter 9699

Jackie-

I cannot for the life of me remember why this sale deal is in there.  I do
believe it is valid and is a part of the purchase deal with Tesoro.  Jill
Zively was the dealmaker and could probably answer your question as could
George Weissman and Melissa Graves.  You might also check with Anita, the
allocator, to see the support she gets for the allocation.  This may give you
some clue as to what this volume represents.  (Let me know, too, since I hate
forgetting things!!!!)


I will definitely think about it...I would just feel bad though missing the event since I talked to Barrett (Deborah's fiancee) all about the big day at Lisa and Brad's wedding.  What may be an option is me taking part or all of Monday off and just heading to Austin Sunday and coming back Monday...I'll talk to my trader about the possibility.

	Enron Capital & Trade Resources Corp.  From:  "corey leahy" <celeahy@hotmail.com>                           04/24/2001 03:07 PM

To:	Susan.M.Scott@enron.com
cc:
Subject:	Re: This Weekend...

I think you can skip Deborah's wedding.  Your good excuse is that I have to
work the next weekend.  Starting on Thursday (the 10th), I have to do Law
Review stuff until the issue we are working on is finished.  It could be two
weeks-- it could be right up until I have to start work...  I don't really
know.  Of course, I won't be working all day everyday, so we could do
dinner, a movie, etc. that weekend.

I don't want to encourage you not to go to Deborah's wedding, but, frankly,
I am all weddinged out.  Have you made plans to go with anyone?  Maybe
something could mysteriously come up...

Oh well-- it's up to you-- you could decide next Saturday if you want to...

-Corey

>From: Susan.M.Scott@enron.com
>To: celeahy@hotmail.com
>Subject: Re: This Weekend...
>Date: Tue, 24 Apr 2001 14:59:46 -0500
>
>
>I've got Deborah Vest's wedding next weekend so that's a no go, but I was
>thinking about coming up the weekend of the 12th so maybe that will work.
>I would actually love to skip out on the wedding...however, since the
>wedding's in Houston and I live here, I don't have a very good excuse do I?
>
>And don't worry...we could wait two years and I'd still want to chat about
>Vegas.  One of those things you'll never really forget.  I'm sure I sounded
>funny and I was definitely tired, but in now way were either of these bad
>things.
>
>Sue
>
>
>
>
>  (Embedded     Enron Capital & Trade Resources Corp.
>  image moved
>  to file:      From:  "corey leahy"
>  pic25990.pcx) <celeahy@hotmail.com>
>                04/24/2001 02:47 PM
>
>
>
>
>
>
>To:   Susan.M.Scott@enron.com
>cc:
>Subject:  Re: This Weekend...
>
>
>Here is my suggestion--
>
>Let's push everything back one week.  My finals are finished Saturday
>morning (the 5th), and we could go to Barton Springs immediately afterward,
>and eat dinner, and rent a movie, and shop on Sunday, etc.
>
>I am really so behind on my school work that I can't justify taking time
>off
>this weekend.  I would try my hardest, but I just don't think I would be
>very much fun.
>
>However, I would love to talk about Vegas.  I've been wondering about it
>because I thought you sounded funny.  Maybe you were just tired.
>
>Let me know.
>
>-Corey
>
> >From: Susan.M.Scott@enron.com
> >To: celeahy@hotmail.com
> >Subject: This Weekend...
> >Date: Tue, 24 Apr 2001 14:00:59 -0500
> >
> >Okay, so I'd really like to make a trip up there this weekend ( I haven't
> >spent a weekend in Houston during April and can't imagine why I wouldn't
> >just make the month a clean sweep).  Anyway, I know you're unbelievably
> >busy right now and spending an entire weekend with me would not help you
>in
> >the least...So, here's my suggestion:
> >
> >I could either come up Friday night and we could do a late dinner (say
> >8:30-9:00 ) and then find someplace to hang out for a while or just rent
>a
> >movie.  On Saturday we could get up, work out, grab something for
> >brunch/lunch and maybe even go to Barton Springs (depending on the
>weather)
> >and then I could take off and leave you the rest of Saturday and all of
> >Sunday to work (we could even skip the Barton Springs piece).
> >
> >The other option is to just shift everything a day forward...I'd come up
>on
> >Saturday and leave Sunday.
> >
> >Either give me a call or email me if either of these sound good to you.
>I
> >will also completely understand if you just really need to work/study
>this
> >weekend.
> >
> >Sue
> >
> >PS - I'm dying for someone to chat with about Vegas...can't really talk
>to
> >my roommate since it was work related.
> >
>
>_________________________________________________________________
>Get your FREE download of MSN Explorer at http://explorer.msn.com
>
>
>
><< pic25990.pcx >>

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com


AGA for 7/14/00 is 70


Steve:
I'm pretty much day to day now.  The latest that I expect to be here is
Friday of this week.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com

	steven.kessler@db.com
	07/10/2000 07:42 AM

		 To: Carol.St.Clair@enron.com
		 cc:
		 Subject: Re: Update

Hi Carol--

Sorry for the delay--people are away this time of year.  I wil try and send
out a new draft tonight.  Do you know when your last day is?  Thanks,

Steve

Carol.St.Clair@enron.com on 07/07/2000 08:58:06 AM

To:   steven.kessler@db.com
cc:
Subject:  Update

Steve:
Could you please update me on where things stand as I will be on my leave
shortly?  Is there any chance of getting a new draft of the schedules and
have
you had a chance to review the new draft of Guaranty that I sent to you?

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com


fyi
---------------------- Forwarded by Kay Mann/Corp/Enron on 06/06/2001 12:19
PM ---------------------------
From: Reagan Rorschach/ENRON@enronXgate on 06/06/2001 11:58 AM
To: "Marvin Carraway (E-mail)" <mcarraway@watervalley.net>@SMTP@enronXgate,
"Marvin Carraway (E-mail 2)" <cpuadmin@clarksdale.com>@SMTP@enronXgate
cc: Kay Mann/Corp/Enron@Enron

Subject: FW: Clarksdale gas

Reagan C. Rorschach
Enron North America
1400 Smith Street
Houston, Texas 77002
713.345.3363

 -----Original Message-----
From:  Mann, Kay
Sent: Wednesday, June 06, 2001 10:49 AM
To: Rorschach, Reagan; Kroll, Heather; Fairley, David; Miller, Jeffrey;
Coulter, Kayne
Cc: Dickson, Stacy; Hodge, Jeffrey; Perlingiere, Debra
Subject: Clarksdale gas

Attached is the master gas agreement, ready for  Clarksdale's review.

We haven't had any feedback from Yazoo City.  When can we expect their
feedback?

Thanks,

Kay


WHAT TO DO IF YOU LOSE YOUR PURSE OR WALLET
We've all heard horror stories about fraud that's committed in your  name,address, SS#, credit, etc. Unfortunately I (the author of this piece who  happens to be an attorney) have first-hand knowledge, because my wallet was  stolen last month and within a week the thieves ordered an expensive monthly  cell phone package, applied for a VISA credit card, had a credit line approved  to buy a Gateway computer, received a PIN number from DMV to change my driving  record information online, and more.
But here's some critical information to limit the damage in case this  happens to you or someone you know. As everyone always advises, cancel your  credit cards immediately, but the key is having the toll free numbers and your  card numbers handy so you know whom to call. Keep those where you can find them  easily. File a police report immediately in the jurisdiction where it was  stolen, this proves to credit providers you were diligent, and is a first step  toward an investigation (if there ever is one).
But here's what is perhaps most important: (I never ever thought to do  this.)
Call the three national credit reporting organizations immediately to place  a fraud alert on your name and SS#. I had never heard of doing that until  advised by a bank that called to tell me and application for credit was made  over the Internet in my name. The alert means any company that checks your  credit knows your information was stolen and they have to contact you by phone  to authorize new credit. By the time I was advised to do this, almost 2 weeks  after the theft, all the damage had been done. There are records of all the  credit checks initiated by the thieves' purchases, none of which I knew about  before placing the alert.
Since then, no additional damage has been done, and the thieves threw my  wallet away this weekend (someone turned it in). It seems to have stopped them  in their tracks.
The numbers are:
Equifax: 1-800-525-6285
Experian (formerly TRW): 1-888-397-3742
Trans Union: 1-800-680-7289
Social Security Administration (fraud line): 1-800-269-0271
We  pass along jokes; we pass along just about everything. Do think about passing  this information along. It could really help someone.
*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*


GaxFax is 52.1
>From: GasFax
>To: GasFax Transmission
>Subject: GasFax Report
>Date: Mon, 11 Jun 2001 18:24:00 -0500
>
>
>GASFAX

>CONFIDENTIAL
>This transmission is intended only for use within the subscribing
>company,
>with access limited to the individual to whom it is addressed, and
>to such other persons
>(within the same company) as may be designated by the addressee to
>have access.
>Reproduction or retransmission of this document or of its contents
>by any means
>(other than for internal use within the subscribing company, or
>return to sender) is prohibited.
>If this communication is received at other than its intended
>destination, or if there are any other
>discrepancies relating to its transmission, please telephone
>713-651-8006 (Houston, TX) immediately.
>? Copyright 2001 - Energy Reporting Network - All rights reserved.
> ENERGY REPORTING NETWORK
> E. G. Higgins, Jr., President
> 601 Jefferson Street, Suite 3690
> Houston, TX 77002
> Phone: 713-651-8006
> Fax: 281-754-4934

Get your FREE download of MSN Explorer at http://explorer.msn.com

 - gfR6111.doc
 - gfR06112.PDF


All - I heard that National Grid is actively lobbying the Governor against signing the implementation of the RPS, (based on the universal applicability to utilities) scheduled to begin in '03.  The legislature passed the RPS as part of the restructuring package, and it went to the Division of Energy Resources for implementation.  Many of you recall that we served on the advisory committee to the DOER and were actively involved with the draft reg to ensure fair implementation.  The RPS regs as they were drafted by the advisory committee are currently before the Governor Swift's staff for evaluation.  The RPS requirement as defined in statute is placed on all retail sellers according to the following percentages of sales: 1% by 12/31/03; an additional .5% of sales each year thereafter until 12/31/09; and an add'l .5% of sales for every year thereafter until a date TBD by the Division of Energy Resources from new renewable resources.  Unless there is legislation to overturn the statute, the RPS will go forward.  However, the implementation regs might be delayed.

I'll keep you posted as to the outcome.

Regards,
Stacey Bolton
Environmental Strategies
Enron Corp
713-853-9916 direct
713-303-2632 cell
sbolton@enron.com <mailto:sbolton@enron.com>