Hello again.  Out of all of the stuff in the media, this is the most
informative of all we have seen.
Very well said.  We wish all the best for those effected and Houston as we
move through this.
When the dust clears, Enron will be remembered as a pioneer and great
corporate citizen.

Best, Mark

W. Mark Shirley, CPA
281.374.6700x230
www.kainon.com

Enron Is History, Says History
By HOLMAN W. JENKINS JR.

November 28, 2001
Business World

Back in the mid-1980s, a pipeline executive called Ken Lay was fishing
around for a name for his company, produced by a merger of Houston Natural
Gas and Omaha-based InterNorth. He consulted with consultants, politicked
with politicians, and came up with a moniker. The company would be called
"Enteron."

Three weeks later, fed up with the wisecracks from a press that had looked
up the dictionary definition of "enteron" (n. the intestine), he changed the
company's name again. Henceforth it would be known as Enron.

A columnist less devoted to high standards of decorum might be tempted to
extend the metaphor of the company's misbegotten name. In recent weeks,
after all, we've seen Enron's stock collapse over indigestible accounting
and the emergence of dealings between the company and its senior officers
that exude an odor of genuine malfeasance. The evidence is far from clear,
but for the sake of Mr. Lay's reputation one hopes these missteps will prove
one more case of a company fooling itself rather than setting out
deliberately to defraud the markets.

Enron grew to be much more than a pipeline hauler of natural gas, becoming
the pre-eminent trader and marketer of all kinds of energy contracts and a
vocal proponent of deregulation. Now, all but overnight, it's kaput, just
waiting to find out if its fate will be bankruptcy or absorption by an
erstwhile rival.

We cannot help be put in mind of another commodity wunderkind in the 1970s,
Phibro (short for Philipp Brothers). Hard to believe, but Phibro was once a
name that made grown men quiver on Wall Street. Fattened by trading profits
from the great commodity inflation of the 1970s, which some mistook for a
permanent new age of scarcity, it scooped up the Street's oldest
partnership, Salomon Brothers, tucking it into its back pocket and renaming
the combined firm Phibro-Salomon. Here was a powerhouse of unlimited
potential, investors told themselves.

Flash ahead to California's electricity meltdown earlier this year. Enron
saw its revenues quadruple partly as a result of the inflated prices being
quoted in the California market. Many foresaw a new scarcity megatrend, but
there was no true energy shortage. Posted prices on the California power
exchange may have skyrocketed, but the effective price was zero dollars and
zero cents, because the utilities had no cash to pay and politicians were
thumbing their noses at piles of IOUs.

When prices are zero, suppliers take a hike -- that's what economics
teaches. But once the state government started pumping its own cash into the
market, the phony posted prices plummeted and supplies became plentiful
again. Now California is swimming in power and nobody talks about an "energy
crisis" anymore.

You can date the loss of investor confidence in Enron almost exactly to the
moment when the California fiasco began to repair itself. Fortune Magazine
put the inaugural nail in Enron's coffin in March, noting that the company's
growing dependence on trading had turned it into an oil-patch version of
Goldman Sachs. Goldman's stock sells at a price-earnings multiple of 17,
reflecting investors' well-founded distrust of trading earnings to be
reproduced reliably year after year. So why, the magazine asked, was Enron
awarded a multiple of 60-plus? Mmm...

Enron did yeoman service as a champion of deregulation. Boss Ken Lay, a
believer in technology and the power of markets, was a true visionary, to
the point of annoying people who didn't care for his air of being a man on
the right side of history. The moldering pipeline he took over would
certainly have been an also-ran if he had not thrown Enron headlong into
trading and marketing.

But deregulation doesn't confer permanent advantage on anybody. A
deregulated environment favors constant innovation and a continual upsetting
of plans and strategies.

Add the fact that, despite the California bubble, there is no reason to
believe energy prices won't continue their long-term relative decline as
technology advances more quickly than the depletion of conventional
resources. Add also the likelihood that information technology will continue
to lower the barriers to entry to Enron's trading business, which means more
competition and shrinking margins. Enron begins to look a lot like Phibro.

The great commodity-trading machine was already running down by 1981, when
it bought Salomon and Wall Street was swooning. Inflation was being quelled
by Paul Volcker. The products that Phibro traders bought and sold were
increasingly being traded transparently on electronic exchanges. "Four or
five years ago, they used to be able to take other companies to the
cleaners, because they knew where the market was and others didn't," a
trader explained. "With everyone knowing, within a few cents, where the
price of any product was, Phibro's ability to make a profit off its superior
knowledge disappeared."

Not only is this true of Enron, but of its would-be bottom fisher, Dynegy,
run by Mr. Lay's Houston homeboy, Chuck Watson. Dynegy's proposed takeover
of its former nemesis was hanging by a negotiation yesterday.

While Enron in recent years was selling hard assets and concentrating on
electronic market-making, Mr. Watson was doing the opposite. His big play in
the Enron deal is to get his hands on the original HNG-InterNorth pipeline,
now known as Northern Natural Gas. By having both feet planted in the real
business, he claims his firm will be able to make a profitable sideline out
of trading despite growing competition and transparency.

We'll see. Dynegy and Enron were born at the same time, and of the same
motive. Dynegy was originally created by six pipeline companies, a
Washington law firm and Morgan Stanley to take advantage of new
opportunities in deregulated natural gas. But the gnats are already
circling.

Gas producers who have claimed for years that the duo control too much of
their fate now insist they shouldn't be allowed to merge. Don't listen to
the fussbudgets. If this was a business in need of trustbusting, Enron
wouldn't have been resorting to funny accounting to make its earnings. As
Merrill Lynch's Donato Eassey has pointed out, wholesale margins have been
steadily thinning as trading becomes more transparent and competitive.

Wishful accounting has time and again proved the last refuge of companies
whose dearly held "visions" were not panning out. Enron prided itself on
being realistic and adaptive, but it failed to see that its own beliefs
about the world needed overhauling.

----------------------------------------------------------------------------
----------------------------------------------------------------------------
--------
"It ain't what you don't know that gets you in trouble; it's what you know
for sure that ain't so."       -Mark Twain

K   A   I   N   O   N      G   R   O   U   P
Consulting  +  Staffing  +  Recruiting


Dan -

Per our conversation today, I made a change to the "exhibit B" confirmation.
If you could let me know that it's OK, we will make change and execute.

Thanks,

Dave Anderson 415-973-6659

-----Original Message-----
From: Dan.J.Hyvl@enron.com [mailto:Dan.J.Hyvl@enron.com]
Sent: Monday, April 02, 2001 2:10 PM
To: Anderson, David W (Law)
Subject: RE: Enron OnLine/ENA-PG&E Supplier Agreement

(See attached file: 2001-001amd.doc)

Dave,
     I have attached Exhibit "B" to the above amendment draft.  Please let
me know if you need anything further.
                                                             Dan

 - PG&E 4-3-01.doc


Start Date: 12/18/01; HourAhead hour: 6;  HourAhead schedule download failed. Manual intervention required.


CALENDAR ENTRY:	APPOINTMENT

Description:
	Scott Mills re:EOL dealswith ENA&S.A

Date:		9/11/2000
Time:		9:00 AM - 10:00 AM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


John Sherriff and I are recommending Carol Hensley (VP Marketing and
Communications at Azurix) for a VP position in John,s organization.  Carol
was a director in the Enron PR group before moving to Azurix.  Her new role
would be to support EnronCredit.com.  A critical success factor for
EnronCredit.com will be to establish a strong brand in the coming months.

 In her time at Azurix, Carol has added significantly to her skills and
experience.  I spoke with John Garrison at length about Carol,s performance
at Azurix.  She has expanded her marketing services skills and provided
significant support in the investor relations arena.  Garrison relates that
the Azurix commercial leaders view Carol as a partner, informed about the
business and instrumental in handling crises and pursuing business
opportunities.

 John Sherriff and Ken Lay join me in recommending that Carol keep her VP
title as she returns to Enron.

 A copy of Carol's resume is attached.


IntercontinentalExchange
                                                                                Firm Power Price Bulletin
                                                                                For Power Delivered on Tuesday, October   30, 2001
                                                                                (Trade Date of Monday, October   29, 2001)
Click here to access index history .
                                                                                * volume represents sell-side only *

Hub	High	Low	Wtd Avg Index	Change ($)	Vol (Mwh)
Cinergy	         $27.00	         $23.00	         $25.55	-   6.48	          80,000
Comed	         $26.00	         $22.15	         $23.78	-   4.10	           4,000
Entergy	         $30.50	         $26.25	         $27.46	+    .96	          16,000
Nepool	         $39.25	         $37.00	         $37.37	-   2.61	           8,000
Palo Verde	         $40.00	         $37.50	         $38.79	+   4.72	           5,600
PJM-West	         $28.50	         $27.50	         $28.02	-   4.23	          50,400
SP-15	         $38.65	         $37.80	         $38.24	+   4.46	           4,000
TVA	         $27.50	         $26.75	         $27.07	-   6.04	           4,000

                                                                                Includes all trades done from 6 AM to 11 AM Central Prevailing Time on the trade date specified for financially firm power delivered during the on-peak hours (6 AM - 10 PM CPT for Eastern hubs / 6 AM - 10 PM Pacific Prevailing Time for Western hubs) on the delivery date(s) specified.
                                                                                IntercontinentalExchange is the world's most liquid trading platform for over-the-counter energy and metals.  Active markets include North American power and natural gas, global crude and refined oil products, and precious metals.  Traded instruments include forwards, swaps, and options.
In order to receive the proprietary information contained in this email, you acknowledge and agree that you shall not further disseminate the IntercontinentalExchange Market Data contained herein to any person or entity without the express written consent of IntercontinentalExchange.    Furthermore, you acknowledge that (1) IntercontinentalExchange has exclusive and valuable property rights in this data; (2) IntercontinentalExchange's data is being made available to you only for your own business or personal activities; and (3) you cannot communicate the data, in any form, to any other person or entity without the express written consent of IntercontinentalExchange.
This data is provided to you free of charge.  IntercontinentalExchange reserves the right to cancel this service at any time for any reason or no reason at all.
You agree that IntercontinentalExchange does not make any representations or warranties, express or implied, with respect to the data.
To become an Exchange Participant or inquire about the indices, please contact sales@intcx.com .
To unsubscribe from this service, click here unsubscribe .
                                                                                ?Copyright IntercontinentalExchange, Inc. 2001, All Rights Reserved.


you bot 475 at 11.75


1. Enron response to various PG&E gas matters (see Mike Day attachment below)
 Gas Receivables request of PG&E
 TURN/ORA Petition Diversion
2. Legislative Update
3. CRA On-Site Generation Language
4. Enron's Reponse to CDWR RFB (see attachment) [Other Parties Comments]
5. Cal PX Security / Collateral Update - Travis McCullough update
6. Bankruptcy News
7. Other

Please feel free to send me any updates or additions.

Jim


I am forwarding a draft of the Amended Complaint in the TVA lawsuit. The
"control area" causes of action have added to our existing request for
declaratory relief on the "delivery point" issue. We would like to file this
next week, so please review this asap. My assistant is putting together a
conference call for Tues afternoon to discuss.
---------------------- Forwarded by Richard B Sanders/HOU/ECT on 12/30/99
09:10 AM ---------------------------

Elizabeth Sager
12/29/99 11:59 AM
To: Richard B Sanders/HOU/ECT@ECT
cc:
Subject: Draft Complaint

---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 12/29/99 11:59
AM ---------------------------

"Anna L. Surber" <Asurber@Gibbs-Bruns.com> on 12/29/99 08:50:14 AM
To: Elizabeth Sager/HOU/ECT@ECT
cc:
Subject: Draft Complaint

 <<1rwh01!.WPD>>

 - 1rwh01!.WPD


Tana/Karen:

The product long description below will fall under the new product type Mixed
Xylene Fin Swap.  Tom Moran has approved copying the profiles for the new
product type from the following:

 US Benzene Financial Swap CMAI Spot

Please respond no later than 10 a.m. on Wednesday, November 15.

Thank you.
---------------------- Forwarded by Lisa Lees/HOU/ECT on 11/14/2000 01:30 PM
---------------------------

From:  Melba Lozano
  11/13/2000 10:04 AM

To: Mark Taylor/HOU/ECT@ECT
cc: Lisa Lees/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT
Subject: Mixed Xylene Fin Swap - 2nd request

Mark,

Please approve the attahced product.

Thanks,
---------------------- Forwarded by Melba Lozano/HOU/ECT on 11/13/2000 10:03
AM ---------------------------

From:  Melba Lozano
  11/09/2000 09:29 AM

To: Mark Taylor/HOU/ECT@ECT, John Swinney/HOU/ECT@ECT, Jeff
Blumenthal/HOU/ECT@ECT, Bjorn Hagelmann/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT,
Stephen H Douglas/HOU/ECT@ECT
cc: Karen Lambert/HOU/ECT@ECT, Robert B Cass/HOU/ECT@ECT, Lisa
Lees/HOU/ECT@ECT
Subject: Mixed Xylene Fin Swap

Your review and approval of the following product type in the EOL Datamanager
is needed (for directions on approval , please see steps for approval at the
bottom of this e-mail).

Traders: Steve Elliott, Lee Jackson, Adam Metry

US MxXylene Swap  CMAI Spot               Aug-Oct00       USD/Gl-b

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

The Term of the Transaction shall be from the Effective Date of 01 Aug 2000
to the Termination Date of 31 Oct 2000.

The Index for a Determination Period shall be the mean of the average of the
high and low price in Cents/Gallons of Mixed Xylene published under the
headings &Prices for Period Ending [DATE]: United States: Mixed Xylene)8
under the caption &SPOT: Cents/Lb.8 in each issue of Chemical Market
Associates, Inc.,s Aromatics Market Report (Weekly) that reports prices
effective for such Determination Period. Notwithstanding the reference to
pounds in the caption mentioned above, the prices quoted for this product by
CMAI are in Cents/Gallon.

The price is quoted in US Dollars per unit of volume, which will be the
Contractual Currency.

The unit of measure against which the price is quoted shall be gallons and
the volume shown shall be in total number of Barrels (42 US Gallons) per
month.

==============================================================================
=====

STEPS FOR APPROVAL:

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

Thanks - Rob Cass  -  Melba Lozano
x35491   x58986


Hi, Kevin:

I hope you have returned to some pattern of normal operations in your shop,
given the events of last week.

Just a quick note to see if Ken Wicker from E-Source has contacted you
regarding coordination a session D (Renewables) of the Alternative Power
Track.  It appears that you're pretty busy with the Natural Gas
Infrastructure committee and I figured you wouldn't mind the relief.

Drop me a line and let me know whether or not Ken has contacted you when you
get a chance.  (FYI - Ken's number is 720-548-5735 and e-mail
kwicker@esource.com).

Thanks,

Bill Dulle
Business Development Manager
AmerenEnergy Marketing
314.613.9475

mailto:Bdulle@amerenenergy.com


Kim

Did you ever get hold of my accountant?


The next scheduled RCR call will take place as follows:

Date:  Monday, May 14

Time:  12:00 PM (CDT)

Number: 1-800-283-1805

Thanks and please call if you have any questions.

gngr
713-853-7751


As requested, please see the attached Master Agreement.  Please contact John
Grass or the undersigned with your questions and or comments.

Regards,
Debra Perlingiere
Legal Specialist


Please see the following articles:

Sac Bee, Wed, 7/18: Lawmakers debate efforts to save Edison:
Competing bills range from a straight bailout to purchase of transmission
lines
Sac Bee, Wed, 7/18: PG&E sues state over seizure of long-term power contracts
Sac Bee, Wed, 7/18: Energy Digest: Advocate attacks utility rescue plan
Sac Bee, Wed, 7/18: Hour of decision: Who will pay for costly power of past,
future?   (Editorial)
SD Union, Tues, 7/17: Utility sues state seeking millions in seized power
contracts
LA Times, Wed, 7/18: PG&E Sues State Over Contracts
SF Chron, Wed, 7/18: Consumer prices up as energy costs moderate
SF Chron, Wed, 7/18: Contra Costa may upgrade 9 buildings
$1.7 million earmarked for conservation
SF Chron, Wed, 7/18: Lawmakers devise rival bailout plans for Edison
Push to come up with alternative to bankruptcy before recess
SF Chron, Wed, 7/18: News briefs on the California power crisis
SF Chron, Wed, 7/18: State's largest utility sues state seeking millions in
power contracts seized by governor
Mercury News, Wed, 7/18: Surplus state power sold at loss
Mercury News, Wed, 7/18:  Light bulb moment (Commentary)
LA Times, Wed, 7/18: California Trading, Wholesale Power Boost Duke's
Earnings 27%
------------------------------------------------------------------------------
----------------------------------------------------
Lawmakers debate efforts to save Edison: Competing bills range from a
straight bailout to purchase of transmission lines.
By Jim Sanders
Bee Capitol Bureau
(Published July 18, 2001)
Divided legislators began wrestling Tuesday with competing proposals to keep
one of California's largest private utilities, Southern California Edison,
from going bankrupt.
Pressure is rising as Edison continues to struggle with more than $3.5
billion in debt and a tentative plan by Gov. Gray Davis to buy the utility's
transmission lines for $2.76 billion has attracted little support.
The question now is whether legislators will accept a modified version of the
governor's deal, will approve an entirely different rescue plan, or will
simply let Edison join Pacific Gas and Electric Co. in bankruptcy court.
"We're encouraged that at least there's activity and people are grappling
with the issues," said John Fielder, an Edison senior vice president.
The Assembly's energy committee heard testimony on two of the competing
proposals Tuesday. The Senate's energy committee will take up the third plan
today.
The issue conceivably could be decided this week, since legislators are
scheduled to begin their summer recess Friday.
Of the three proposals under consideration, one would authorize state
purchase of Edison's transmission lines, one would provide an option to buy,
and one would simply tally Edison's debts and charge ratepayers to pay them
off.
Some legislators favor doing nothing at all and letting a bankruptcy judge
decide Edison's fate.
Steve Maviglio, a spokesman for Davis, said the Democratic governor supports
anything that "comes close" to the tentative deal, hammered out in April, to
buy Edison's transmission lines.
Assemblyman Fred Keeley, D-Boulder Creek, and Assembly Speaker Robert
Hertzberg, D-Sherman Oaks, have proposed a rescue plan that would buy the
lines at a lower price -- $2.4 billion -- and would modify the governor's
plan substantially.
Key elements of the bill would allow the state to buy Edison's hydroelectric
assets if the transmission-line sale falls through, allow businesses to
contract with private suppliers for electricity in 2003, and commit the state
to paying only 70 cents of every dollar owed by Edison to power generators.
The deal also would provide California with ownership or conservation
easements to more than 20,000 acres of land, and would require Edison to
increase its supply of alternative energy -- such as wind or solar. The
proposal is not expected to spark new rate hikes, Keeley said.
The Senate plan, like the Keeley-Hertzberg proposal, would require large and
medium businesses to pay down much of Edison's debts.
The Senate plan dedicates up to $2.5 billion in large-user rates for debts
involving banks and renewable energy sources known as "qualifying
facilities."
The plan, written by Sen. Byron Sher, D-Palo Alto, seeks to leave Edison with
$1 billion in debt from generators and marketers for the utility to work out
on its own.
The Senate plan would give the state a five-year option to buy Edison
transmission lines for book value -- about $1.2 billion.
Rather than provide conservation easements, the plan calls for Edison's
environmentally sensitive acreage to be acquired by the state or a trust.
Remaining parts of the proposal are similar to the governor's deal.
A third proposal, pushed by several lawmakers, seeks to eliminate debt for
Edison and PG&E. It would not involve transmission lines, conservation
easements or other such elements.
Advocates say Edison's debt stemmed largely from failed state regulatory
policies, so the state should simply charge consumers a monthly fee to pay it
off.
"This is a straight bailout -- no hidden balls, no extras," said Assemblyman
Rod Wright, D-Los Angeles.
It is not yet known whether that monthly fee could fit within the existing
rate structure. For home'owners, the amount is estimated at $4 in the PG&E
service area and $2 within Edison's boundaries.
Consumer groups are wary of the Edison rescue proposals, fearing the state
will ultimately promise too much and get too little.
"When a supermarket and dairy farmer both are forced to pay a 10-year bailout
tax, the consumer pays more for milk," said Doug Heller of the Foundation for
Taxpayer and Consumer Rights.

The Bee's Jim Sanders can be reached at (916) 326-5538 or jsanders@sacbee.com
<mailto:jsanders@sacbee.com>.
Kevin Yamamura of The Bee Capitol Bureau contributed to this report.

PG&E sues state over seizure of long-term power contracts
By Dale Kasler
Bee Staff Writer
(Published July 18, 2001)
Reopening an old wound in California's energy crisis, Pacific Gas and
Electric Co. has sued the state over a group of low-cost energy contracts
seized almost six months ago by Gov. Gray Davis.
The lawsuit, filed Monday in San Francisco Superior Court, stems from the
collapse of the California Power Exchange and the state's entry into the
power-buying business in January.
PG&E and Southern California Edison had entered into a series of long-term
purchase contracts through the exchange, a now-defunct market for buying and
selling electricity. But as both utilities collapsed financially and the
Power Exchange was clinging to life, the exchange seized the contracts and
was about to auction them off for nonpayment of bills.
That's when Davis stepped in. Using his emergency powers, the governor
grabbed control of the contracts, saying he didn't want them resold at
inflated prices.
At the time, the exchange said the contracts were worth about $1 billion,
with PG&E's share set at $348 million.
But it's likely their value has fallen along with the spot market price of
electricity. Back when the governor seized them, PG&E's contracts were for
$60 to $130 a megawatt-hour. That was a bargain at the time, and made the
contracts very valuable. Now that spot prices have plunged, those contracts
are no longer such a great deal.
PG&E's lawsuit didn't put a value on the contracts. Nevertheless, "the state
has benefited from the contracts," said PG&E spokesman Ron Low. "We should be
compensated."
The state had planned to pay for the contracts, at a price to be determined
by a state government claims board, said Davis' spokesman Steve Maviglio. But
he said the state also expected to be taken to court over the issue.
"We always thought we'd be fighting it out in a neutral forum," Maviglio
said. "This comes as no surprise."

The Bee's Dale Kasler can be reached at (916) 321-1066 or dkasler@sacbee.com
<mailto:dkasler@sacbee.com>.

Energy Digest: Advocate attacks utility rescue plan

(Published July 18, 2001)
The state's consumer advocate criticized Gov. Gray Davis' proposed rescue
plan for San Diego Gas & Electric on Tuesday, calling it too generous to the
utility's shareholders.
The Public Utilities Commission's Office of Ratepayer Advocates called the
proposed deal with SDG&E and its parent company, Sempra Energy, "clearly
excessive."
The advocate said the state goes too far in the core element of the rescue
plan -- the $1 billion state purchase of SDG&E's transmission lines. The
advocate said the money would be better spent building or buying new
generating plants.
The plan must be approved by the Legislature and PUC. A similar plan, to buy
Southern California Edison's transmission lines, has run into numerous
roadblocks in the Legislature.
--Dale Kasler

Hour of decision: Who will pay for costly power of past, future?

(Published July 18, 2001)

In the next few days, state lawmakers and regulators must make some
unsettling choices about how to share the financial burdens of California's
electricity debacle.
Looking backward, they will decide how -- or whether -- to erase $3.5 billion
in debts run up last year by Southern California Edison, when it bought
pricey power but couldn't pass the costs on to consumers. Looking ahead, they
will choose who, if anybody, will get out of paying for expensive power
purchased by the state since the utilities ran out of cash last January.
In both cases, the principle guiding the decision ought to be the same: No
one is blameless in getting California into this mess, and no group can
escape the pain of getting out of it.
Democratic lawmakers in the Assembly are searching in vain for ways to hide
the real costs from voters. Their idea is to have the large users of power
(mostly big businesses) pay off Edison's past debts. In return, businesses
would get some freedom to shop for cheaper power deals in the future.
The problem is that there won't be much opportunity to shop in the coming
years. That's because Gov. Gray Davis went out at the very peak of the market
and bought up most of the state's future electricity supply before it went on
sale. The strategy of locking most of California's power demand into
long-term contracts seemed ill-advised at the time, even more so now.
Now that the governor has done all this shopping, the Public Utilities
Commission must assure that electric customers will pay for all that
electricity -- $43 billion worth of power over the next decade or so. In
addition, the PUC must commit customers to repaying the state for the power
it has already purchased this year -- many billions on top of that. The state
borrowed from itself to buy all this power, and is banking on a bond sale to
pay off this debt. Unless a portion of the rate customers pay is dedicated to
repaying those bonds, they can't be sold.
This web of regulation, contracts and finance is so complex, so huge, it's
hard to see how the energy leaders in a few days will find a graceful, fair
solution. But for a political compromise to work, all the interests involved
must take some pain.
Southern California Edison must swallow some of its debt. Power generators
and the state must renegotiate some of their long-term contracts so that the
generators give back some of the bounty they reaped by market manipulation.
And no consumer, big or small, should be allowed to avoid paying the true
costs of the power they use. In this reckoning, there's no easy way out for
anyone -- and especially not for the elected officials who must deliver the
bad news.

Utility sues state seeking millions in seized power contracts

\
objattph
By David Kravets ASSOCIATED PRESS  July 17, 2001  SAN FRANCISCO )
California's largest utility sued the state Tuesday seeking reimbursement of
millions of dollars in energy contracts the governor seized Jan. 31.  San
Francisco-based Pacific Gas & Electric Co. said it "has received no
compensation for the damage to its property," according to a suit filed in
San Francisco Superior Court.  The suit came as PG&E, which filed for
bankruptcy protection in April, struggles to repay $14.4 billion in debt to
thousands of creditors.  Invoking constitutionally vested powers, Gov. Gray
Davis seized the energy contracts to keep the California Power Exchange from
liquidating them. The now-defunct exchange, which was the state's middleman
for the buying and selling of power, wanted the contracts for itself to
recoup hundreds of millions in unpaid power buys that PG&E owed it.  The
governor's office acknowledged that California owes PG&E for the contracts,
an amount that Davis wants a judge to determine. At the time they were
seized, the state estimated their value at $160 million, while the power
exchange priced them at $347 million.  "We seized the contracts to have
reasonable priced power and expected that price to be set in a neutral
forum," said Steve Maviglio, the governor's spokesman.  It's not easy to
determine their value. Using the contracts, the state buys electricity at a
set price, and can avoid the sky-high prices it has to pay for power bought
at the last minute. Therefore, the contracts' value changes with the volatile
price of electricity.  "We believe the state has benefited from the value of
our contracts, and as a result we should be compensated," PG&E spokesman Ron
Low said.  Low declined to place a value on the contracts.  The contracts in
question, which the state is now using to buy electricity because the
utility's bad credit rating restricts it from buying its own, promise power
at rates below those being charged today by power generating companies.
Because of the shaky financial pictures of PG&E, Southern California Edison
Co. and San Diego Gas & Electric Co., the state in January began buying much
of the electricity to supply the ratepayers of those utilities.  The power is
sold to ratepayers through the utilities, which reimburse the state through
consumers' bills. But, because of energy pricing rules that prompted the
utilities' unstable financial footing, current rates are not enough to repay
the state. To recoup its losses, the state is expected to sell $8 billion or
more in bonds to be repaid through increased consumer power rates.  Under
California's 1996 deregulation plan, the state's utilities sold many of their
power plants and were forced to buy electricity on the market through the
newly created power exchange.  As demand mushroomed and supplies became
scarce, the utilities began paying substantially more for electricity than
deregulation rules allowed them to collect from consumers.  The case is PG&E
v. California, 322921.

PG&E Sues State Over Contracts
From Bloomberg News

July 18 2001

SAN FRANCISCO -- PG&E Corp.'s Pacific Gas & Electric Co. utility sued
California on Tuesday, saying it wants to be paid for the wholesale
electricity contracts the state seized in January.

Gov. Gray Davis took away Pacific Gas' 12-month forward contracts to ensure a
sufficient and continuous supply of electricity for the state. At the time,
California estimated the contracts were worth $150 million.

Pacific Gas claims the contracts had "significant value" because they allowed
the utility to receive power for less than current market rates. "Although
PG&E has demanded just compensation from the [state], PG&E has received no
compensation for the damage to its property," the utility said in court
papers filed Monday in San Francisco Superior Court.

The company, which filed for Chapter 11 protection in April, is seeking
damages and attorney fees. The state claimed in January that the contracts
would have delivered enough electricity to power 100,000 to 500,000 homes for
6 cents to 13 cents per kilowatt-hour.

Officials in the governor's office did not immediately return calls seeking
comment.
Copyright 2001, Los Angeles Times <http://www.latimes.com>

Consumer prices up as energy costs moderate
LEIGH STROPE, Associated Press Writer
Wednesday, July 18, 2001
,2001 Associated Press
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/07/18/finan
cial0837EDT0023.DTL>
(07-18) 05:37 PDT WASHINGTON (AP) --
Consumer inflation edged up last month as electricity prices continued to
surge, while the cost of gasoline and other energy products retreated.
The Labor Department reported Wednesday that the Consumer Price Index, the
government's most closely watched inflation measure, climbed by a seasonally
adjusted 0.2 percent in June. The index was up 3.8 percent for the year.
The new reading on consumer prices matched analysts' expectations.
The "core" rate of inflation, which excludes volatile energy and food prices,
rose 0.3 percent in June compared with just 0.1 percent in May.
,2001 Associated Press

Contra Costa may upgrade 9 buildings
$1.7 million earmarked for conservation
Jason B. Johnson, Chronicle Staff Writer <mailto:jbjohnson@sfchronicle.com>
Wednesday, July 18, 2001
,2001 San Francisco Chronicle </chronicle/info/copyright>
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/07/18/
MNC199898.DTL>
Contra Costa will spend as much as $1.7 million to conserve energy at the
county's nine worst "energy hog" buildings under a proposal approved
yesterday by the Board of Supervisors.
The measure is part of a larger effort the board in March agreed to undertake
to reduce the county's energy use by up to 10 percent.
A private company will install upgraded heating, ventilation and air
conditioning control systems at the nine buildings, resulting in savings of
just under $200,000 a year.
"What we've done is pick our energy hogs," said Bart Gilbert, the county's
general services director. "To start the process of making our buildings more
energy efficient."
County officials had no difficulty in identifying the hogs, which tended to
be large buildings that serve a variety of uses and are open as much as 24-
hours a day, seven days a week, said Gilbert.
Eight of the buildings are in Martinez, the county seat, and one is in
Antioch. They include the Bray Courts building in downtown Martinez,
sheriff's offices and morgue, and the Employment and Human Services building
in Antioch.
One energy waster is the 120,000-square-foot Summit Center, an office
building on Arnold Drive in Martinez that the county acquired last year.
The building's cooling system activates at a particular setting -- 76
degrees. So it shuts down completely when the temperature reaches below that
setting and won't turn on until it reaches about 79 degrees.
But new digital technology controls allow the system to gradually reduce or
increase power without having to shut down, which saves energy.
"When you turn the system on everything doesn't kick in, everything doesn't
come on full speed," said Gilbert. "That's a tremendous savings."
The county will contract with Syserco Inc. of Fremont to install the new
control systems from July through June 30, 2002.
County officials believe that the plan will reduce demand by 700,000 kilowatt
hours and pay for itself in about five years by reducing energy costs.
The county has applied for a low-interest loan from the state's Energy
Department that would cover about half the plan's costs. It is one of several
Bay Area communities seeking such loans during the energy crisis.
In the past two months, state officials have received $50 million worth of
new loan applications from city and county governments.
Before the energy crisis, the department would average between $5 and 10
million in loan applications, said Virginia Lew, project manager for the
department's Energy Partnership Program.
San Francisco is set to receive $5 million in loans for replacing inefficient
lighting at San Francisco General Hospital and city traffic signals.
Solano County will receive $1.1 million for lighting and efficiency projects
similar to those in Contra Costa, while Santa Rosa was given $1.5 million for
water and wastewater treatment facility upgrades.
Oakland officials are awaiting approval of the city's application for about
$400,000 for a combination of lighting and ventilation efficiency projects.
e-mail Jason B. Johnson at jbjohnson@sfchronicle.com
<mailto:jbjohnson@sfchronicle.com>.
,2001 San Francisco Chronicle </chronicle/info/copyright> Page A - 17

Lawmakers devise rival bailout plans for Edison
Push to come up with alternative to bankruptcy before recess
Lynda Gledhill, Chronicle Sacramento Bureau <mailto:lgledhill@sfchronicle.com>
Wednesday, July 18, 2001
,2001 San Francisco Chronicle </chronicle/info/copyright>
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/07/18/
MN76320.DTL>
Sacramento -- Lawmakers are struggling this week to agree on a plan to keep
Southern California Edison from declaring bankruptcy as they rush to complete
business before Friday's scheduled summer recess.
After months of talking about a solution and dismissing one agreed to by
Edison and Gov. Gray Davis, lawmakers now have several competing proposals to
consider.
A plan introduced last week by Assembly Speaker Robert Hertzberg, D-Sherman
Oaks (Los Angeles County), was debated for several hours yesterday, along
with a GOP-backed alternative by Assemblyman Roderick Wright, D-Los Angeles.
The two plans, which are scheduled for votes today in the Assembly Energy
Costs and Availability Committee, take sharply different approaches:
-- Hertzberg's plan would pay $2.4 billion for Edison's transmission lines to
help cover the utility's estimated $3.5 billion debt. The utility would be
allowed to pay off its remaining debt by issuing bonds.
The utility would repay the bonds using ratepayer money. For the first two
years, all customers would pay for the debt, but after that the largest users
would pay off the rest.
-- Wright calls his plan a "straight bailout." It would allow the utility to
issue bonds to cover all of its debt and impose a $2 a month rate increase
for all users until the debt is paid.
The Senate also introduced its own plan. A bill by Sen. Byron Sher, D-Palo
Alto, would give the state a five-year option to buy the transmission lines
and would have the state back only $2.5 billion of the utility's debt.
Since Davis announced a deal with Edison earlier this year, lawmakers,
business groups and consumer advocates have all expressed reservations with
one aspect or another of it. Opposition has usually focused on the state
purchase of Edison's transmission lines.
The flurry of activity this week is an effort by lawmakers to take some kind
of vote before they adjourn. The Edison agreement has an Aug. 15 deadline for
approval by the Legislature.
Brian Bennett, a spokesman for Edison, said creditors view that date as
extremely important.
"We're as close to bankruptcy as our creditors want us to be," he said. "Is
it a drop dead date? I don't know, but it is clearly an important date."
Consumer groups have denounced Wright's plan, and at least one calls
Hertzberg's proposal just another bailout and said it would cost Californians
$6.7 billion over the next 10 years.
"We cannot be seduced by big businesses paying a bailout tax," said Doug
Heller, a consumer advocate with the Foundation for Taxpayer and Consumer
Rights. "At the end of the day, we know businesses will pass these costs on
to the consumer."
Included in the 76-page Hertzberg bill are provisions that would allow large
companies to buy their power directly from a provider instead of going
through the utility after 2003.
But a coalition of large business groups also said they are strongly opposed
to the plan because it does not allow for immediate direct access.
"Ultimately, we think our companies buying power for themselves is the best
solution," said Jack Stewart, president of the California Manufacturers and
Technology Association. "If businesses think there's a light at the end of
the tunnel where they see lower rates coming, they might tough it out and
stay."
Wright argues that the beauty of his proposal is that it could easily apply
to the Pacific Gas and Electric Co. service area if the company wanted to use
it as a way out of bankruptcy court. He estimates that PG&E customers would
pay about $4 a month to help the company pay off its debt.
"This is a straight bailout," Wright said. "This is not a hidden bill. There
are extras."
Wright said he believes his constituents would rather pay an extra $2 than be
unemployed because their business left the state due to high energy costs.
Business groups said the idea makes sense.
"What good would it do to have your electricity bill reduced by $10 or $15
but not have a job?" said Bill Hauck, president of the California Business
Roundtable.
Whatever plan is eventually authorized would be used to convince the PG&E
bankruptcy judge to follow a similar model for that company, giving the state
those transmission lines as well.
The purchase of the transmission lines has been at the center of Davis' plan.
He argues that the purchase will give the state the ability to upgrade the
system, allowing a better flow of power between Northern and Southern
California and a decreased chance of blackouts.
But opponents argue that the state is getting one-third of a complicated
system that will cost billions to upgrade and operate.
"It's like buying a car with three wheels -- it is not going to get out of
the lot," consumer advocate Heller said.
E-mail Lynda Gledhill at lgledhill@sfchronicle.com
<mailto:lgledhill@sfchronicle.com>.
,2001 San Francisco Chronicle </chronicle/info/copyright> Page A - 14

News briefs on the California power crisis

Wednesday, July 18, 2001
,2001 Associated Press
URL:
<http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/07/18/state
0913EDT0146.DTL>
(07-18) 06:13 PDT (AP) -- diuriegr1 ?By The Associated Press?SAN DIEGO (AP) -- County supervisors want to eliminate a $100 fee for ?installing solar power systems to spur interest in the alternative energy ?source. ?Supervisor Ron Roberts proposed waiving the fee at the board's Tuesday ?meeting. A new ordinance may be ready for the supervisors' approval in two ?months. ?The fee is charged to homeowners who live in the unincorporated areas of the ?county. Solar power systems for hot water heaters can cost about $4,000 and ?home units can cost about $26,000. ?The county has been issuing more permits for solar units this year and ?expects to issue 250 permits by December. Two years ago, the county issued ?only 12. ?TEMECULA, Calif. (AP) -- An Indian burial ground sits in the way of a ?proposed power-line route and tribal members have asked U.S. Sen. Barbara ?Boxer to help preserve the site. ?Boxer, D-Calif., last week introduced an amendment to the Interior ?Appropriations bill that would place more than 700 acres of land owned by the ?Pechanga tribe in a federal trust. If approved, the legislation would allow ?the tribe to bypass the procedure review by the Bureau of Indian Affairs. ?San Diego Gas & Electric wants to run a 500,000-volt power line through the ?area. The $271 million route would run through southwestern Riverside County ?and link the utility's grid with one operated by Southern California Edison. ?SDG&E officials said the proposed federal legislation wouldn't derail the ?company's project. ?"I don't think it jeopardizes the project," said SDG&E spokeswoman Jacqueline ?Howells. "There are variations of our line that don't require that land, and ?there are alternatives further west." ?The state's Public Utilities Commission must still approve the project. ?The tribe recently purchased the site, which has one of the state's oldest ?oak trees. It is also home to several village sites and areas used for ?cremation. Tribal chairman Mark Macarro said the amendment wasn't ?specifically meant to block the power line project but rather to preserve the ?land from development. ?,2001 Associated Press ???????State's largest utility sues state seeking millions in power contracts seized ?by governor ?DAVID KRAVETS, Associated Press Writer?Wednesday, July 18, 2001 ?,2001 Associated Press ?URL: ?<http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/07/18/natio?nal0848EDT0542.DTL>?(07-18) 05:48 PDT SAN FRANCISCO (AP) -- ?California's largest utility has sued the state seeking reimbursement of ?millions of dollars in energy contracts seized by the governor. ?San Francisco-based Pacific Gas & Electric Co. "has received no compensation ?for the damage to its property," the company said in a lawsuit filed Tuesday ?in San Francisco Superior Court. ?PG&E filed for bankruptcy protection in April and is struggling to repay ?$14.4 billion to thousands of creditors. ?Gov. Gray Davis seized the energy contracts on Jan. 31 to keep the California ?Power Exchange from liquidating them. The now-defunct exchange, which had ?been the state's middleman for buying and selling power, wanted the contracts ?to recoup hundreds of millions of dollars that PG&E owed it. ?The governor's office acknowledged that California owes PG&E for the ?contracts, an amount that Davis wants a judge to determine. At the time they ?were seized, the state estimated their value at $160 million, while the power ?exchange priced them at $347 million. ?"We seized the contracts to have reasonable priced power and expected that ?price to be set in a neutral forum," said Steve Maviglio, the governor's ?spokesman. ?Under the contracts, the state buys electricity at a set price rather than ?paying higher prices for power bought at the last minute. Therefore, the ?contracts' value changes with the volatile price of electricity. ?"We believe the state has benefited from the value of our contracts, and as a ?result we should be compensated," PG&E spokesman Ron Low said. ?Low declined to place a value on the contracts. ?,2001 Associated Press ?????Surplus state power sold at loss ?Posted at 11:50 p.m. PDT Tuesday, July 17, 2001 ?BY JOHN WOOLFOLK ??Mercury News ???State officials who bought power contracts averaging $138 per megawatt-hour ?for this month are selling some of the power back for as little as $1 per ?megawatt-hour, traders say. ?After scrambling this spring for every megawatt it could buy to stave off ?summer blackouts, cool weather and decreased demand have left the state ?holding more power than it needs and selling the surplus for whatever it can ?get. ?State officials won't say how much they are selling the power for, but ?acknowledged unloading surplus electricity. ?``We're seeing certain times of the day where we may not need power that we ?previously thought we needed, and we're selling it on the open market,'' said ?Oscar Hidalgo, spokesman for the state Department of Water Resources. ``We're ?probably moving a little more power than we anticipated, but I don't think ?anybody anticipated a July like we're experiencing.'' ?Utilities routinely sell surplus contract power when demand is lower than ?expected. But the state's recent sell-off could fuel criticism that ?California bought too much power at too high a price, fearing rolling ?blackouts and soaring prices this summer. ?``There's a painful lesson to be learned when you overbuy when supplies are ?tight,'' said Gary Ackerman, executive director of the Western Power Trading ?Forum. ``Anybody can lose money in this business, and the state of California ?is getting a taste of that.'' ?The state in the past week has sold anywhere from 10 to 20 percent of its ?available power, Hidalgo said. On Tuesday, the state had up to 40,000 ?megawatts available, while demand hovered around 32,000 megawatts, according ?to the power grid operator. ?Must be sold ?Because electricity cannot be stored, power purchased in contracts for a ?later date would be wasted if not used or sold. ?``It's better than losing it altogether,'' Hidalgo said. ``The way the ?electricity business is set up, you either use it or move it. You can't put ?it in a bottle and put it on a shelf.'' ?State officials would not say how much they've made in sales to offset ?purchase costs, citing concerns about jeopardizing their bargaining position. ?According to California Energy Markets, a trade weekly, the state was ?unloading power last Thursday at $25 per megawatt-hour. Ackerman said the ?state has been selling power for as little as $1 to $5 per megawatt-hour. ?Power was selling on the spot market for $20 to $40 per megawatt-hour ?Tuesday. ?The state, which assumed the role of power buyer for California's biggest ?utilities in January, expected to sell surplus power from time to time, ?although not quite this much, Hidalgo said. Even with demand down, the state ?still is buying more power than it sells, he said. ?With temperatures throughout the West unseasonably low in recent weeks, other ?utilities also are selling their surplus power at a loss. ?``That's an accepted operating risk we always assume,'' said Scott Simms, ?spokesman for Portland General Electric, adding that recent federal price ?caps are lower than what the Oregon utility paid. ``Sometimes you gain, ?sometimes you lose. Hopefully, if you planned well, you end up winning.'' ?Whether the state planned well or overbought is hard to say. The contracts ?could prove invaluable if another heat wave threatens blackouts. Ackerman ?likened power contracts to insurance -- a prudent move to guard against ?shortages and price spikes, even if it turns out you don't need it. ?At the very least, the current situation underscores the importance of ?weather in the volatile electricity market. Traders pore over forecasts and ?even buy weather insurance, Ackerman said. ?Demand and prices have been so low that some energy companies are shutting ?down the small power plants called ``peakers.'' ?Hidalgo said the state has no regrets. ?``What we were doing was making sure we had an available supply with these ?contracts,'' Hidalgo said. ``We were facing scarcity in the market early on. ?There wasn't enough supply to fulfill the need. What the contracts have done ?is obligated the producers to give us power.'' ?Blackout threat fades ?The state's daily power costs have fallen from more than $100 million in May ?to less than $26 million in July, Hidalgo said, and there hasn't been a ?blackout in two months. While some of the surplus power is sold on the ?market, it is also being traded to Northwestern hydropower utilities to cover ?past debts, he said. ?``This is not a bad position for us to be in,'' Hidalgo said, adding that the ?situation could always take a turn for the worse. ``We can't lose sight of ?the fact that we're still in an emergency situation. If this was routine, ?this crisis would be over. We're not out of the woods.'' ???Contact John Woolfolk at jwoolfolk@sjmercury.com ?<mailto:jwoolfolk@sjmercury.com> or (408) 278-3410. ????????Light bulb moment ?Published Wednesday, July 18, 2001, in the San Jose Mercury News ?NOW it all makes sense. Dick Cheney hasn't been pushing to drill for more oil ?and gas because of his pals in the energy business. It's because of his ?electric bill. ?The veep mansion, it turns out, consumes electricity the way a 1965 ?Oldsmobile burned gas. The bill for this year -- $186,000 -- shouldn't have ?to come out of Cheney's budget, the White House says. It should be paid by ?the Navy, which owns the property. ?No way, we say -- unless the house lights have some national defense value. ?Perhaps blinding the pilots of incoming fighter jets? ?The Bush team says California should just face up to market prices. So why ?not Cheney? ?But there is an alternative, as we've discovered out here. Conservation. It ?works. Really. ?Cheney's got a 33-room house. Do they all have to be lit up all the time? ?????Business; Financial Desk ?California Trading, Wholesale Power Boost Duke's Earnings 27%?THOMAS S. MULLIGAN??07/18/2001 ?Los Angeles Times ?Home Edition ?Page C-2 ?Copyright 2001 / The Times Mirror Company ?Pushed by the explosive growth of its trading and wholesale-power businesses, ?Duke Energy Corp. on Tuesday reported a 27% increase in second-quarter ?profit, narrowly topping Wall Street estimates. ?Duke's net income was $419 million, or 53 cents per share, in the quarter ?ended June 30, up from $329 million, or 44 cents, in the year-ago quarter. ?The consensus estimate of industry analysts was 52 cents per share. ?Revenue for the quarter leaped 43% to $15.6 billion. ?Shares rose 38 cents to close at $42.03 on the New York Stock Exchange. ?Charlotte, N.C.-based Duke, like other out-of-state independent power ?producers, is under fire from Gov. Gray Davis for allegedly overcharging for ?electricity from its California generating plants. ?Duke does not break out its California results, but its profits from soaring ?spot-market prices in California during the quarter probably amounted to no ?more than a penny or two per share, according to analyst Jeff Gildersleeves ?of Argus Research in New York. ?California accounts for about 10% of Duke's U.S. wholesale-power business, ?and about 90% of its California power is sold through long-term contracts ?rather than on the spot market, the company has said. ?Those long-term contracts are a source of worry for investors, Gildersleeves ?said. Neither Duke nor the state has disclosed whether the contract prices ?can be adjusted downward if spot-market prices fall, he said. If the prices ?are not firm, it could represent a risk to future profits, he added, ?especially if spot prices continue to fall. ?Duke's North American Wholesale Energy business unit posted second-quarter ?operating earnings of $251 million, up 128% from $110 million a year earlier. ?Analyst Timothy M. Winter of A.G. Edwards in St. Louis said the overall ?quarter was "very good," considering that Duke's earnings from its ?regulated-utility business in North and South Carolina actually were flat ?because of mild weather, a slowing economy and increased costs associated ?with some nuclear generating facilities being out of operation. ???PHOTO: Duke, which owns a plant in Morro Bay, beat analyst estimates.; ; ?PHOTOGRAPHER: CAROLYN COLE / Los Angeles Times ?


These are drafts from about 3 weeks ago.  As I mentioned there have been many
recent changes.  This is just to give us an idea of what is being worked on.
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on
28/07/99 03:06 PM ---------------------------

Andrea Bertone
28/07/99 05:28 PM

To:   Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject:  Re: Enc: 3MW Transaction

Brent: Further to our telephone conversation today, below are the English
versions of the supply and sale agreements.
---------------------- For warded by Andrea Bertone/ENRON_DEVELOPMENT on
07/28/99 02:37 PM ---------------------------

"JE - Jose Emilio Pinto" <Je@tfts.tozzini.com.br> on 07/02/99 03:11:56 PM

To:   Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject:  Re: Enc: 3MW Transaction

Vou mandar pela ?ltima vez. JE

Date: Wed, 30 Jun 1999 14:04:39 -0300
From: "AGNES - Agnes Cristina Pilchowski" <Agnes@tfts.tozzini.com.br>
To: Je@tfts.tozzini.com.br
Subject: Re: Enc: 3MW Transaction
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_326474E3.AECFA3CE"

A tradu??o do "columbian-supp" est? no arquivo "columbin" e a do "sale1" est?
no arquivo "carboppa".

>>> JE - Jose Emilio Pinto 06/30 12:47 pm >>>
V. tem estas tradu??es? JE

 - Columbin.doc - Carboppa.doc


Chrissy,  This is Cove Point gas we use to cover CES retail sales on TCO.
The price was not entered in the separate meter entry for COVE POINT for that
deal #143336.  So I entered the CGAS APPAL.IF.MI + 0.0841 price to cover
those sales to CES. FYI.. It's the same price we have for all the other
retail sales to CES on TCO on that ticket.   If it is different then change
it.  THANKS

Chris Germany
02/09/2000 04:01 AM
To: Victor Lamadrid/HOU/ECT@ECT, Scott Hendrickson/HOU/ECT@ECT
cc: Chris Germany/HOU/ECT@ECT, Sandra Dial/HOU/ECT@ECT
Subject: Price verification on sitar #143336 @ Loudoun

Hey Buddy, get Scott Hendrickson to pull this up.  If it's Cove Point gas,
then Scott, Robin, and Kate will need to figure it out.

My Sitara is still not working.

---------------------- Forwarded by Chris Germany/HOU/ECT on 02/09/2000 03:56
AM ---------------------------

Sandra Dial
02/08/2000 04:58 PM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: Price verification on sitar #143336 @ Loudoun

Chris,

Just wanted to verify a portion of sitara # 143336 (Sale to Columbia Energy
Services Corp.).

At the point, "Loudoun - CGAS/CVPT Loudoun", volumes are coming through Unify
@ $0 and Econ is flashing volumes @ $ .0001. I just wanted to make certain
that the economics  pricing is correct since all other parts of the deal are
at  an Index + .0841.

Please call or e-mail your response.

Thanks for your help.

Sandra
x5-7213


Here is a transcript of the first day of the Hellmold deposition.  Report to
follow.

................................................

ALSCHULER GROSSMAN STEIN & KAHAN LLP
ATTORNEYS AT LAW
www.agsk.com

2049 Century Park East
Thirty-Ninth Floor
Los Angeles, CA 90067-3213
Tel 310-277-1226
Fax 310-552-6077

This transmission is intended only for the use
of the addressee and may contain information
that is privileged, confidential and exempt from
disclosure under applicable law. If you are not
the intended recipient, or the employee or agent
responsible for delivering the message to the
intended recipient, you are hereby notified that
any dissemination, distribution or copying of
this communication is strictly prohibited.

If you have received this communication
in error, please notify us immediately
via e-mail at postmaster@agsk.com or
by telephone at 310-277-1226. Thank you.

...............................................
 - NSM419A.TXT


Good start.


John,

I made the changes you suggested.

The prior version contained a non-circumvention (you can't pursue the project
without me) versus the current exclusivity (you must work only with me),
which seems somewhat more restrictive since it would keep us from bringing in
additional participants.  I've changed language in the next paragraph to
avoid a contradiction.

 If we go with this approach then I suspect we will want to work on an LOI
which divides up responsibility going forward. Let me know what you think.

Kay


Melissa:  Did you ever send this to David per my email?
----- Forwarded by Sara Shackleton/HOU/ECT on 09/06/2000 02:15 PM -----

	Sara Shackleton
	08/25/2000 01:20 PM

		 To: Melissa Ann Murphy/HOU/ECT@ECT
		 cc:
		 Subject: Financial swap re PJM wholesale power

Melissa:  Would you please sent David an example of a confirm with the GTC's
(standard Annex A).  Please cc me.  Thanks.  Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 08/25/2000 01:18 PM -----

	David Portz
	08/25/2000 09:40 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc:
		 Subject: Financial swap re PJM wholesale power

Sara:  When you have a chance, would you forward me a sample confirmation for
one of the above referenced trades?   I want to have a sense of the terms of
the GTCs attached to such confirmations when an ISDA master is not in place
with a counterparty.  Thanks.  --David


Thank you for your request.

You will be notified via eMail when your request has been processed. You can
check the progress of your request by doing one of the following:
In the SRRS application, click on Requests I Have Made. A listing of recent
requests will be appear sorted by resource name.
Click on the Request Link below. This is a link to information regarding your
request.

Below is a summary of your request.

Requested For:  Bilal Bajwa/NA/Enron
Request Date:  12/11/2000 1:27:47 PM
Request Type:  Update Access
Request Link:

Requested Resources
O:\Global_Trading\Financial_Trading

If you have any questions, please contact Information Risk Management at
35536


Melissa,

I just sold a swap to EPE and I have forwarded a copy of the attachment below
to them.  They have agreed with the terms in the attachment.  Could you
coordinate with Sara Shackleton to include the necessary attachment in our
confirm.

Thanks,

Paul Choi
---------------------- Forwarded by Paul Choi/SF/ECT on 05/05/2000 04:10 PM
---------------------------
From: Tana Jones on 05/05/2000 06:02 PM CDT
To: Paul Choi/SF/ECT@ECT, Christian Yoder/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT
Subject: El Paso Electric Company

At the request of Sara Shackleton, I am transmitting a proposed form of Annex
A for the referenced counterparty.  Please call me at x33399 or Sara at
x35620 if we can be of further assistance.


"In an age when cloying, dumbed-down Internet "chat" threatens to reduce
discourse to the linguistic equivalent of casual Fridays, men's-room
vernacular is seeping alarmingly past its Pine Sol perimeter, infecting what
is left of conversational civility.  Well-articulated sublimation--which has
produced some damned fine (and sexy) art, music, and literature over the
millennia--is no longer the default mode of expression.   That ageless Hot
Boy, Michelangelo's David, could only have been produced through deft
restraint.  But try telling that to some WWF instant Adonis with a
protein-supplement habit."

                --Gerri Hirshey


You might check the letter agreement re escrow and see what it says.

ckm
---------------------- Forwarded by Kay Mann/Corp/Enron on 05/25/2001 08:40
AM ---------------------------

"Reuter, Marisa" <MReuter@KSLAW.com> on 05/24/2001 05:44:04 PM
To: "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>
cc: "Keffer, John" <JKeffer@KSLAW.com>

Subject: RE: NorthWestern

Kay:

Attached please find the documents that you requested.

Regards,

Marisa

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Thursday, May 24, 2001 5:44 PM
To: mreuter@kslaw.com; jkeffer@kslaw.com
Subject: NorthWestern

Hi there,

I would like to have one email with electronic versions of the letter
agreement, and all the attachments except the turbine contract.

Thanks,

Kay

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

Content-Transfer-Encoding: 7bit
Message-ID: <C73D1CFC0D15D311907600902746036FDFC777@nyexch1.ny.phjw.com>
From: "Murphy, Deirdre M." <DeirdreMurphy@paulhastings.com>
To: "'mreuter@kslaw.com'" <mreuter@kslaw.com>
cc: "DeBerry, Jeremiah A." <JeremiahDeberry@paulhastings.com>, "Wright,
Tremaine S." <TremaineWright@paulhastings.com>
Subject: Email on behalf of Tremaine Wright re: NorthWestern/Turbine Purch ase
Date: Mon, 21 May 2001 15:45:16 -0400
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2653.19)
Content-Type: multipart/mixed ;
boundary="----_=_NextPart_002_01C0E4A3.089D69B0"

"paulhastings.com" made the following annotations on 05/21/01 15:45:31
----------------------------------------------------------------------------
--
NEW E-MAIL ADDRESSES AT PAUL, HASTINGS, JANOFSKY & WALKER LLP

We have changed our e-mail address.  Our new domain name is
paulhastings.com.  In most cases, our address is composed of
conventional first name and last name plus @paulhastings.com.  Here are
two examples: janesmith@paulhastings.com and danjones@paulhastings.com.
If you have any questions, please contact us at noc@paulhastings.com.

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

============================================================================
==

Content-Transfer-Encoding: 7bit
To:
Subject:
Date: Thu, 24 May 2001 18:49:09 -0400
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2653.19)
Content-Type: multipart/mixed ;
boundary="----_=_NextPart_004_01C0E4A3.089D69B0"

 - ATT16903.txt
 - ATT16904.htm
 - #331617 v3 - NW Agreement Guaranty.wpd
 - #69012 v3 - Guarantee.wpd
 - #333343 v6 - Letter Agreement.doc
 - #333403 v4 - E-Note.doc
 - #334835 v2 - NWassignment.doc
 - #333345 v4 - LLC Agreement.doc
 - #333347 v3 - Escrow Agreement.doc
 - #333404 v3 - Promissory Note.doc


Outlook Migration Team@ENRON
05/11/2001 01:49 PM
To: Cheryl Wilchynski/HR/Corp/Enron@ENRON, Cindy R Ward/NA/Enron@ENRON, Jo
Ann Hill/Corp/Enron@ENRON, Sonja Galloway/Corp/Enron@Enron, Bilal
Bajwa/NA/Enron@Enron, Binh Pham/HOU/ECT@ECT, Bradley Jones/ENRON@enronXgate,
Bruce Mills/Corp/Enron@ENRON, Chance Rabon/ENRON@enronXgate, Chuck
Ames/NA/Enron@Enron, David Baumbach/HOU/ECT@ECT, Jad Doan/ENRON@enronXgate,
O'Neal D Winfree/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Sladana-Anna
Kulic/ENRON@enronXgate, Victor Guggenheim/HOU/ECT@ECT, Alejandra
Chavez/NA/Enron@ENRON, Anne Bike/Enron@EnronXGate, Carole
Frank/NA/Enron@ENRON, Darron C Giron/HOU/ECT@ECT, Elizabeth L
Hernandez/HOU/ECT@ECT, Elizabeth Shim/Corp/Enron@ENRON, Jeff
Royed/Corp/Enron@ENRON, Kam Keiser/HOU/ECT@ECT, Kimat Singla/HOU/ECT@ECT,
Kristen Clause/ENRON@enronXgate, Kulvinder Fowler/NA/Enron@ENRON, Kyle R
Lilly/HOU/ECT@ECT, Luchas Johnson/NA/Enron@Enron, Maria Garza/HOU/ECT@ECT,
Patrick Ryder/NA/Enron@Enron, Ryan O'Rourke/ENRON@enronXgate, Yuan
Tian/NA/Enron@ENRON, Frank Ermis/HOU/ECT@ECT, Jane M Tholt/HOU/ECT@ECT, Jay
Reitmeyer/HOU/ECT@ECT, Keith Holst/HOU/ECT@ect, Matthew Lenhart/HOU/ECT@ECT,
Mike Grigsby/HOU/ECT@ECT, Monique Sanchez/HOU/ECT@ECT, Phillip K
Allen/HOU/ECT@ECT, Randall L Gay/HOU/ECT@ECT, Tori Kuykendall/HOU/ECT@ECT,
Ina Norman/HOU/ECT@ECT, Jackie Travis/HOU/ECT@ECT, Michael J
Gasper/HOU/ECT@ECT, Brenda H Fletcher/HOU/ECT@ECT, Jeanne
Wukasch/Corp/Enron@ENRON, Mary Theresa Franklin/HOU/ECT@ECT, Mike
Potter/NA/Enron@Enron, Natalie Baker/HOU/ECT@ECT, Suzanne
Calcagno/NA/Enron@Enron, Albert Stromquist/Corp/Enron@ENRON, Rajesh
Chettiar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Derek Anderson/HOU/ECT@ECT,
Brad Horn/HOU/ECT@ECT, Camille Gerard/Corp/Enron@ENRON, Cathy
Lira/NA/Enron@ENRON, Daniel Castagnola/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Eva Tow/Corp/Enron@ENRON, Lam Nguyen/NA/Enron@Enron, Andy
Pace/NA/Enron@Enron, Anna Santucci/NA/Enron@Enron, Claudia
Guerra/NA/Enron@ENRON, Clayton Vernon/Corp/Enron@ENRON, David
Ryan/Corp/Enron@ENRON, Eric Smith/Contractor/Enron Communications@Enron
Communications, Grace Kim/NA/Enron@Enron, Jason Kaniss/ENRON@enronXgate,
Kevin Cline/Corp/Enron@Enron, Rika Imai/NA/Enron@Enron, Todd
DeCook/Corp/Enron@Enron, Beth Jensen/NPNG/Enron@ENRON, Billi
Harrill/NPNG/Enron@ENRON, Martha Sumner-Kenney/NPNG/Enron@ENRON, Phyllis
Miller/NPNG/Enron@ENRON, Sandy Olofson/NPNG/Enron@ENRON, Theresa
Byrne/NPNG/Enron@ENRON, Danny McCarty/ET&S/Enron@Enron, Denis
Tu/FGT/Enron@ENRON, John A Ayres/FGT/Enron@ENRON, John
Millar/FGT/Enron@Enron, Julie Armstrong/Corp/Enron@ENRON, Maggie
Schroeder/FGT/Enron@ENRON, Max Brown/OTS/Enron@ENRON, Randy
Cantrell/GCO/Enron@ENRON, Tracy Scott/Corp/Enron@ENRON, Charles T
Muzzy/HOU/ECT@ECT, Cora Pendergrass/Corp/Enron@ENRON, Darren
Espey/Corp/Enron@ENRON, Jessica White/NA/Enron@Enron, Kevin
Brady/NA/Enron@Enron, Kirk Lenart/HOU/ECT@ECT, Lisa Kinsey/HOU/ECT@ECT,
Margie Straight/HOU/ECT@ECT, Mark L Schrab/HOU/ECT@ECT, Souad
Mahmassani/Corp/Enron@ENRON, Tammy Gilmore/NA/Enron@ENRON, Teresa
McOmber/NA/Enron@ENRON, Wes Dempsey/NA/Enron@Enron, Barry
Feldman/NYC/MGUSA@MGUSA, Catherine Huynh/NA/Enron@Enron
cc:
Subject: 2- SURVEY/INFORMATION EMAIL 5-14- 01

Current Notes User:

To ensure that you experience a successful migration from Notes to Outlook,
it is necessary to gather individual user information prior to your date of
migration.  Please take a few minutes to completely fill out the following
survey. Double Click on document to put it in "Edit" mode. When you finish,
simply click on the 'Reply With History' button then hit 'Send'  Your survey
will automatically be sent to the Outlook 2000 Migration Mailbox.

Thank you.

Outlook 2000 Migration Team

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

Full Name:        Phillip Allen

Login ID:   pallen

Extension:   37041

Office Location:  EB3210C

What type of computer do you have?  (Desktop,  Laptop,  Both)   Both

Do you have a PDA?  If yes, what type do you have:   (None, IPAQ, Palm Pilot,
Jornada)  IPAQ

Do you have permission to access anyone's Email/Calendar?
    If yes, who?

Does anyone have permission to access your Email/Calendar?   Yes, Ina Rangel
    If yes, who?

Are you responsible for updating anyone else's address book?
    If yes, who?

Is anyone else responsible for updating your address book?
    If yes, who?

Do you have access to a shared calendar?
    If yes, which shared calendar?

Do you have any Distribution Groups that Messaging maintains for you (for
mass mailings)?
    If yes, please list here:

Please list all Notes databases applications that you currently use:

In our efforts to plan the exact date/time of your migration, we also will
need to know:

What are your normal work hours?  From:   7   To:      5

Will you be out of the office in the near future for vacation, leave, etc?
       If so, when?        From (MM/DD/YY):      To (MM/DD/YY):


Louise:

Is Enron ready for this?  I think it is a good suggestion for the most
significant deals.  It is really positive in that it would force dealmakers
to pay more attention to what the contracts provide.  I am not sure it makes
sense to follow this procedure for every deal that is dashed.  Let's talk
about what are the objectives.  Great question!

Mark

	Louise Kitchen
	03/28/2001 04:27 PM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc:
		 Subject: CACs Forms

Response?
---------------------- Forwarded by Louise Kitchen/HOU/ECT on 03/28/2001
04:27 PM ---------------------------

Louise Kitchen
03/21/2001 12:35 PM
To: Mark E Haedicke/HOU/ECT@ECT
cc: John J Lavorato/Enron@EnronXGate

Subject: CACs Forms

We have spoken about this before, the issue is that Enron Americas has no
approval mechanism for contracts. Neither does any other group but that is
not my problem.  I have spent too much time reading DASH forms which really
do not provide full authorization.

There are two suggestions that I would like to be implemented:

(i) DASH forms need to include all of the contracts which are to be signed
under the deal.  So if a DASH is signed then this authorizes all of the
contracts to be signed in the deal.  Any contracts which are not included
need to go through the process outlined below.

(ii) All contracts need a Contract Approval Form attached and Enron's legal
team cannot initial any contract until this form has been completed (ie
signed) by the following Enron staff.

Trader/Originator ________________________________
Head of Group (VP or above)______________________
Credit__________________________________________
Legal__________________________________________
Tech Services (where applicable)__________________
Commercial Support (where applicable)_____________

A database of all completed contracts on behalf of Enron Americas needs to be
maintained by Legal.

Thoughts please?


FYI

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 11/02/2000
10:57 AM ---------------------------

	From:  Cathy Phillips                           11/02/2000 09:00 AM

To: Mark Frevert/NA/Enron@Enron, Mike McConnell/HOU/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT, Alan Aronowitz/HOU/ECT@ECT, Pierre Aury/LON/ECT@ECT,
Sally Beck/HOU/ECT@ECT, Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Kathryn Corbally/Corp/Enron@ENRON, Jeff Donahue/HOU/ECT@ECT, Stephen H
Douglas/HOU/ECT@ECT, Jennifer Fraser/HOU/ECT@ECT, Shanna
Funkhouser/Corp/Enron@ENRON, Eric Gonzales/LON/ECT@ECT, Gary
Hickerson/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT, Larry Lawyer/Enron
Communications@Enron Communications, Chris Mahoney/LON/ECT@ECT, George
McClellan/HOU/ECT@ECT, Thomas Myers/HOU/ECT@ECT, John L Nowlan/HOU/ECT@ECT,
Jere C Overdyke/HOU/ECT@ECT, Beth Perlman/HOU/ECT@ECT, Brent A
Price/HOU/ECT@ECT, Daniel Reck/HOU/ECT@ECT, Cindy Skinner/HOU/ECT@ECT, Stuart
Staley/LON/ECT@ECT, Mark Tawney/HOU/ECT@ECT, Scott Tholan/Corp/Enron@Enron,
Lisa Yoho/HOU/EES@EES
cc: Nicki Daw/NA/Enron@Enron, Cathy Phillips/HOU/ECT@ECT, Jennifer
Burns/HOU/ECT@ECT, DeMonica Lipscomb/Corp/Enron@ENRON, Yvonne
Francois/Corp/Enron@Enron, Stella L Ely/HOU/ECT@ECT, Angie
Collins/HOU/ECT@ECT, Donna Baker/HOU/ECT@ECT, Helen Marie Taylor/HOU/ECT@ECT,
Chantelle Villanueva/HOU/ECT@ECT, Betty J Coneway/HOU/ECT@ECT, Marsha
Schiller/HOU/ECT@ECT, Patti Thompson/HOU/ECT@ECT, Cherylene R
Westbrook/HOU/ECT@ECT, Candace Parker/LON/ECT@ECT, Joya Davis/HOU/ECT@ECT,
Sharon Purswell/HOU/ECT@ECT, Gloria Solis/HOU/ECT@ECT, Brenda J
Johnston/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kristy Carnes/Enron
Communications@Enron Communications, Kim
Hickok/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Susan McCarthy/LON/ECT@ECT, Paula
Forsyth/Corp/Enron@ENRON
Subject: EGM Staff Meeting

Just a reminder that the EGM weekly staff meeting will take place on Monday,
November 6th, from 8:30 - 9:30 a.m., in video conference room EB 32C2.  The
staff meetings will continue on a weekly basis on every Monday at the same
time and location unless notified otherwise.

Please let me know if you will be unable to attend.  Thank you.

Cathy Phillips
X-36898


Where do you stand on this stuff now?

For everyone, if we are going to get this done, we need things taken care of.    If there is a problem you need to let us know ASAP!

-----Original Message-----
From: Saunders, James
Sent: Thursday, November 08, 2001 10:25 AM
To: Howard, Kevin A.
Cc: Walden, Clint; Rogers, Rex; Butts, Bob; Fossum, Drew; Chandler, Bob;
'heather.l.mueck@us.arthurandersen.com'; Hayslett, Rod
Subject: RE: ETSC financial statements
Importance: High

we need to provide Andersen:
signed legal letters from V&E and the Special Committee (Rogers and Butts)
a legal perspective on backdrafts (Fossum)
a copy of the bank letter regarding material adverse changes (Howard)
signed management re letter (signees to be determined)
footnote cleanup (Saunders, et al)

-----Original Message-----
From: Howard, Kevin A.
Sent: Thursday, November 08, 2001 9:58 AM
To: Saunders, James
Cc: Walden, Clint
Subject: RE: ETSC financial statements

we are scheduled to close on Friday but more likely over weekend and fund Tuesday of next week.  Any help I can give you with AA, just let me know.  What are we still waiting on from them?

Kevin

-----Original Message-----
From: Saunders, James
Sent: Thursday, November 08, 2001 9:56 AM
To: Howard, Kevin A.
Subject: RE: ETSC financial statements

side question...when is the formal NNG and TW debt financing going to close.
we still have yet to finish Andersen review activities


-----Original Message-----
From:  Hendon, Brian
Sent: Friday, May 11, 2001 10:48 AM
To: Barry & Pam Hendon (E-mail); Candice Hendon (E-mail); Carolyn Hendon
(E-mail); Kemp Tullier (E-mail)
Cc: 'hendob@hotmail.com'
Subject: Japan Trip

If my Japan business trip goes through (75% chance), this is where I'll be
living for 1 month (July/August timeframe) - not too shabby...

http://www.palacehotel.co.jp/index_e.html

Brian Hendon
Enron Global Markets
Finance & Structuring
direct: 713-853-6301
cell: 713-502-5021
fax: 713-646-3203


where does this stand?  we really need amitavas full time focus.

Benjamin Parsons
27/10/2000 07:50
To: Mike Mumford/LON/ECT@ECT
cc: Steven Leppard/LON/ECT@ECT, Bryan Seyfried/LON/ECT@ECT, Nigel
Price/LON/ECT@ECT

Subject: Re: Amitava is Diverted

Presumably if the Eastern Credit Reserve issues take lots of his time away
from EnronCredit, we could extend his stay for another week? Especially as
it's unlikely we could get Vasant over in the foreseeable future.

Ben

Mike Mumford
26/10/2000 18:20
To: Bryan Seyfried/LON/ECT@ECT
cc: qlist

Subject: Amitava is Diverted

Bryan,

Just FYI - Amitava will be diverted for an unspecified portion of his stay
here next week.

The did the initial coding for software / pricing systems used to value the
Eastern deal.  There are over-riding concerns there I  or Steve L. can fill
you in on if you like.  Problem could be Monday morning or all week.

We could press for Vasant to re-prioritize his time.

Any thoughts?  I haven't checked with Ben about impacts yet...

Ben?

Mike


EFF_DT PORTFOLIO_ID DOWN95
1/31/01  MANAGEMENT-COAL 0
1/31/01  MANAGEMENT-CRD 0
1/31/01  MANAGEMENT-GAS 117,556
1/31/01  MANAGEMENT-PWR 176,812
1/31/01  AGG-MANAGEMENT 259,508


----- Forwarded by Brian Hendon/Enron Communications on 03/27/01 11:22 AM
-----

	Carolyn_Hendon@gwinnett.k12.ga.us
	03/27/01 08:16 AM

		 To: Brian Hendon/Enron Communications@Enron Communications
		 cc:
		 Subject: Fwd: Fw: HAPPY EASTER

---------------------- Forwarded by Carolyn Hendon/Pinckneyville Middle/GCPS
on
03/27/2001 09:09 AM ---------------------------

Cheryl Nakahata
03/26/2001 01:26 PM

To:   Carolyn Hendon/Pinckneyville Middle/GCPS@GCPS, Kathy
McBride/Pinckneyville
      Middle/GCPS@GCPS, Cyndie Burgess/Pinckneyville Middle/GCPS@GCPS, Lynn
      Bird/Pinckneyville Middle/GCPS@GCPS, Nancy Grant/Pinckneyville
      Middle/GCPS@GCPS, Carol Rappold/Pinckneyville Middle/GCPS@GCPS
cc:

Subject:  Fwd: Fw: HAPPY EASTER

Subject:  Fwd: Fw: HAPPY EASTER

 - Easterch.jpg


Hello, Sharon!   Stan Horton is currently planning to attend this event.

Cindy

Sharon_Marino@eott.com on 11/28/2000 09:37:30 AM
To: Houston_Employees%EOTT@eott.com
cc:

Subject: JUST A REMINDER!

TO ALL HOUSTON EMPLOYEES:  COUNTDOWN TO THE HOLIDAY CELEBRATION IS ON!!!
AS IT IS APPROACHING QUICKLY, WE WOULD APPRECIATE YOUR RSVPs (VIA EMAIL, IF
YOU WISH) AT YOUR EARLIEST CONVENIENCE SO THAT WE MAY PROVIDE OUR CATERERS
AN ACCURATE HEAD COUNT ASAP.

THANKS!
SHARON

                            Holiday
 Celebration!

              You are cordially invited to attend

               EOTT's Annual Holiday Celebration

                          to be held

         Friday, December 8, 2000  - 11:30 AM- 2:30 PM

           on the 20th Floor of  - Briar Lake Plaza

                   FOOD! GAMES! PRIZES! FUN!

    RSVP:   Sharon Marino  - X5002 -OR email no later than
                            12/4/00

  NOTE:  For those of you on alternate work schedules, (9/80
                          and 4 1/2),
        you are requested to work on 12/8/00, and take
 an alternate day off during the same week.  Please coordinate
                      this alternate time
   off with your supervisor to ensure adequate coverage for
                        business needs.

Sharon Marino
Executive Assistant
EOTT HR/Administration
713 993 5002
sharon.marino@eott.com


This is a reminder to please have your calendar marked for Friday July 7,
2000, for the ENA VP PRC Pre-Ranking Meeting. The meeting will be held at the
DoubleTree (Granger B) from 8:00 am to 5:00 pm.

If you have any questions/conflicts, please feel free to call me.  Irma
Alvarez will be following up with invitations that will have detailed
information within the next few days.

Thanks,

Kay  3-0643


FYI -

 -----Original Message-----
From: 	djcustomclips@djinteractive.com@ENRON [mailto:IMCEANOTES-djcustomclips+40djinteractive+2Ecom+40ENRON@ENRON.com]
Sent:	Wednesday, June 20, 2001 7:05 AM
To:	168842@mailman.enron.com
Subject:	Rahil Jafry: El Paso Unveils Wholesale Trading Desk.

El Paso Unveils Wholesale Trading Desk.

06/19/2001
Business News Americas
Copyright 1996 - 2001 Business News Americas (BNamericas.com)

El Paso Energy InternationalTransportadora Brasileira Gasoduto
Bolivia-Brasil S.A.Gas Transboliviano S.A.

United States power company El Paso yesterday unveiled a wholesale
trading and risk management platform at its US$10mn headquarters in Rio
de Janeiro, which will cover all of El Paso's Latin American operations,
the company said in a statement.
"With the implementation of merchant power stations [in Brazil] the
company will begin to commercialize electric energy on the wholesale
market for distributors and large clients," El Paso said.

The trading desk has 54 stations, and is similar to that of a
stockbroker trading house, the company explained. It is the same system
used by El Paso's Merchant Energy Group at the company's Houston
headquarters, with 300 traders, and in London, where it has 150 traders.

Contracts are closed through the wholesale energy market (MAE) or
through bilateral contracts, El Paso explained.

The trading desk is part of El Paso's strategic shift to concentrate on
developing regional bases with integrated businesses, from exploring,
extracting and transporting natural gas to thermoelectric power
generation and electricity trading. Some US$5bn will be invested in
Brazil through 2005.

As well as a number of exploration and production activities in Brazil,
El Paso has generating projects under way or under evaluation which will
total 2,625MW installed capacity:

The projects are 100% ownership of the 400MW Manaus natural gas plant in
Amazonas state that began operations in 1997; 100% of the 870MW Macae
Merchant natural gas thermoelectric project in Rio de Janeiro, scheduled
to begin 200MW operations in September 2001 and full production in 2002;
50% of the 350MW Porto Velho thermoelectric project in Roraima,
scheduled for operations in September 2001. The plant will initially use
diesel fuel, until a natural gas pipeline can be built to supply the
plant, which will the be converted to use three natural gas turbines and
one steam turbine. Brazil's CS Participacoes the remaining 50%.

An additional projects is the 480MW Araucaria thermoelectric project in
Parana state, scheduled to begin operations in mid-2002, with two
natural gas turbines and one steam turbine. El Paso owns a 60% stake
while Brazil's Copel and Petrobras subsidiary Gaspetro each own 20%.

Projects under evaluation are the 300MW Termocatarinense Norte -
Guaramirim thermoelectric project in Santa Catarina, in which El Paso
owns 70%; and the 225MW Paracambi thermoelectric project in Rio de
Janeiro that would produce 125MW from early 2002 followed by a further
100MW from 2003. El Paso would own 100% of this project.

El Paso also owns a 9.67% stake in TBG, the Brazilian management company
of the Bolivia-Brazil natural gas pipeline, and a 2% stake in Bolivian
management company GTB.

http://www.bnamericas.com

Copyright 1996 - 2001 Business News Americas (BNamericas.com).

Folder Name: Rahil Jafry
Relevance Score on Scale of 100: 82

______________________________________________________________________

To review or revise your folder, visit http://www.djinteractive.com or contact Dow Jones Customer Service by e-mail at custom.news@bis.dowjones.com or by phone at 800-369-7466. (Outside the U.S. and Canada, call 609-452-1511 or contact your local sales representative.)
______________________________________________________________________

Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved


I have attached how I would do it.  check out the red comment marks.  Do not
add day ahead + 1
I leave for Portland around 4:00

Thanks
Hunter


ok

>I have a court at 500 - see ya there unless I here otherwise

---------------------------------------------------------------
 Grant A. Cox                          ph: (713) 522-6300
 Groundwater Services, Inc.           fax: (713) 522-8010
 2211 Norfolk, Suite 1000          e-mail: gacox@gsi-net.com
 Houston, TX 77098
---------------------------------------------------------------


The hardest part of preparing the Long Descriptions is making sure all of the
terms used in th GTC's that need to be defined elsewhere are covered.  I'll
have to leave the final determination to the people who drafted the GTC's.  I
also have to point out I don't know much of anything about how bandwidth is
traded, but here are the comments I was able to come up with to the Long
Descriptions:

Bandwidth Units - This concept has been difficult for me - it's not entirely
clear to me where the definition of this comes from - is it the reference in
the box at the top of the relevant Annex?  If so, maybe we should add a line
something to the effect of 'Bandwidth Units shall mean DS-3 for this
Transaction.'  Or better yet you might consider a generic reference to the
relevant Annex that should apply which might let you delete the sentence
referring to the quality as well.

Does 'DSO' need to be defined somewhere?

The way the different Price definitions fit together has also eluded me -
there is a formula in the Long Description and a different formula in the
GTC.  Unless industry trading convention is to the contrary, the site makes
more intuitive sense when the volume quoted and the price quoted use the same
units.  If the volume is Bandwidth Units and the price is a per mile number
some counterparties (or perhaps more likely their lawyers) may be confused.
The GTC contains the defined term 'Unit Price' which is in $/Bandwidth Unit.
It seems to me that if we can quote the price as the Unit Price and the
volume as Bandwidth Units, we can ignore the number of DSO's per Bandwidth
Unit and the number of DSO miles for the transaction.

Since they won't change from one product to the next, the two sentences
beginning with 'Any party entering into a Transaction...' could be moved to
the GTC.

The term 'Contractual Currency' is not used int he GTC.  Can the
parenthetical reference come out?  (The EnronOnline people may care about
this more than I.)

If the numbers of miles and DSO's need to stay in the Long Descriptions, I
would suggest that you change the references to make it DSO's per Bandwidth
Unit (both where the number is introduced and in the price formula) and that
the unt of measure against which the price is quoted be 'per DSO mile per
month'.

Is the volume on the quotes page a monthly or total number?  This needs to be
clear from the Long Description.

So for example, if you follow all of my suggestions, you might end up with
something like this:

A US Bandwidth Transaction with Enron Broadband Services, L.P. (&EBS8)
pursuant to which the Seller shall sell and the Buyer shall buy the quantity
of Bandwidth Units submitted by Counterparty via the Website.  The price
shall be as submitted by the Counterparty via the Website.  Annex A-1 of the
General Terms and Conditions shall apply to this Transaction.
The term of the Transaction shall begin at 12:00 a.m. (EST) on the Effective
Date and continue to 11:59:59 p.m. (EST) on the Termination Date. The
Effective Date is <Start Date> and the Termination Date is <Termination
Date>.
The Transaction shall be for Bandwidth between the New York Market Pooling
Point (111 8th Avenue, Suite 1517, New York, NY 10011, NPA-NXX: 212-462,
CLLI: NYCMNY83H62) and the Los Angeles Market Pooling Point (530 W. 6th
Street, Suite 300, Los Angeles, CA 90014, NPA-NXX: 213-362, CLLI:
LSAJCAWZH04).
The price is quoted in US Dollars.
The unit of measure against which the price is quoted is one Bandwidth Unit
per month and the quantity shown shall be in number of Bandwidth Units per
month.

If quoting the price as a per Bandwidth Unit number doesn't work it would be
more like this:

A US Bandwidth Transaction with Enron Broadband Services, L.P. (&EBS8)
pursuant to which the Seller shall sell and the Buyer shall buy the quantity
of Bandwidth Units submitted by Counterparty via the Website. The number of
DSO,s per Bandwidth Unit is 672. The price shall be as submitted by the
Counterparty via the Website.  Annex A-1 of the General Terms and Conditions
will apply to this Transaction.
The term of the Transaction shall begin at 12:00 a.m. (EST) on the Effective
Date and continue to 11:59:59 p.m. (EST) on the Termination Date. The
Effective Date is <Start Date> and the Termination Date is <Termination
Date>.
The Transaction shall be for Bandwidth between the New York Market Pooling
Point (111 8th Avenue, Suite 1517, New York, NY 10011, NPA-NXX: 212-462,
CLLI: NYCMNY83H62) and the Los Angeles Market Pooling Point (530 W. 6th
Street, Suite 300, Los Angeles, CA 90014, NPA-NXX: 213-362, CLLI:
LSAJCAWZH04), for a total of 2,446 DSO miles.
The price is quoted in US Dollars.
The unit of measure against which the price is quoted is one DS0 mile per
month and the quantity shown shall be in number of Bandwidth Units per month.
Therefore, the Contract Price will be calculated as follows: price x the
number of DS0,s per Bandwidth Unit x the number of DS0 miles x the number of
Bandwidth Units.

Please let me know if you have any questions - I will go ahead and approve
the product in the system so you can proceed without me if necessary.

Mark

Leonardo Pacheco@ENRON
04/27/2000 01:38 PM
To: Tana Jones/HOU/ECT@ECT, James Ginty/Corp/Enron@ENRON, Mark
Taylor/HOU/ECT@ECT, Taffy Milligan/HOU/ECT@ECT
cc:
Subject: Bandwidth Products On EnronOnline. (Revised)

FYI
---------------------- Forwarded by Leonardo Pacheco/Corp/Enron on 04/27/2000
12:36 PM ---------------------------

Leonardo Pacheco
04/27/2000 01:07 PM
To: Jay Hawthorn/Enron Communications@Enron Communications, Tom
Moran/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Rudi Zipter/HOU/ECT@ECT, Jeff
Blumenthal/HOU/ECT@ECT
cc: David Forster/Corp/Enron@Enron, Dale Neuner/HOU/ECT@ECT, Cynthia
Harkness/Enron Communications@Enron Communications

Subject: Bandwidth Products On EnronOnline. (Revised)

Please note that we have added another product type (bringing the total
number to three)!.
We have built three new Products Types called US Bandwidth DS3 Physical
Forward, US Bandwidth OC3 Physical Forward, and US Bandwidth OC3c Physical
Forward. Please go into DataManager and approve these Product Types (look at
attached Document for long descriptions).  We are going life on the 1st of
May.  If you need help with the approval process contact Dale Neuner (ext.
39746) or myself (ext. 39938). Please Do Not Reject the Product Type. If you
have questions or changes to the Product Type please contact me at your
convenience.

Thank you very much for your co-operation!

Leonardo Pacheco
ext. 39938


We will be releasing new version of the Stack Manager and the EnronOnline website tonight . The following are the changes

1. Changes to Stack Manager:

1.1 Changes to toolbar icons:
To facilitate further development of the system, it has been found necessary to change the toolbar icons at the top of the Stack  Manager. The attached file shows the old icon and its new replacement. Next to each image below is the description of the function that is executed as well as the short cut key that is mapped to the same function:

1.2 New Functionality - Auto Suspend
The Auto Suspend function allows traders to set an absolute price change from a price level at which you would like the system to automatically suspend a specific product. This function is useful if your products use automatic price resets.

To activate this feature:
1. Select a product and click on Product Properties
2. Check the Enable box
3. Enter the Price Check and Suspend at +/- values
4. Click Update
Example: a trader Enables Auto Suspend and selects a $35.00 Price Check and a suspension level of +/- $5.00: The system will suspend the product when the mid price is above  $40.00 or below $30.00

You will need to enter a new Price Check or disable the Auto Suspend function to reactivate this Product if the Auto Suspend is triggered.
Please note the system checks for any products that need to be suspended once a minute.

2. Changes to EnronOnline Website
 (These changes will be rolled out in phases over the next week and will be available to all customers only by Friday 5/4/01)

The following enhancements have been made to the EnronOnline Website:

2.1 Today's Transactions

Float Window:  In order to float the window, right click on the Today's Transactions section, click on the Float Window option.

Sort Ordering: Click on the column heading to change the sort order.

Linked Transactions: You can display the linked Transactions in an expanded or collapsed view. To do so, right click in the Transaction display area and select full Expand or Full Collapse.

2.2 Submission Box

The submission box has been modified in order to show a space between each set of "zeros" for the volume the customer wants to sell/buy.

Savita


I checked with Heather, and it turns out this second NCPA counterparty
shortname was set up to distinguish between two different SC numbers. But
it's only for internal use - both counterparty names have the same billing
information, etc. So Heather said the deals are fine as they are. I'm going
to find out more about this after the afternoon rush dies down - just so
we'll know for the future when to use which shortname.

Kate

	From:  Sharen Cason                           01/25/2001 02:04 PM

To: Kate Symes/PDX/ECT@ECT
cc:

Subject: NCPA #505486 and 505487

These two deals are entered with a special counterparty name that looks like
it may have been set up for some special deal.  There is another counterparty
name out there that looks just the same only without the very last series of
letters.  I will check here and see if anyone knows the difference.  There is
a note in the Global System that says Heather Dunton had this CP set up.  If
you could check with her and see if it should be used for these deals or if
the other CP should be used.

Thanks!


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

----- Forwarded by Debra Perlingiere/HOU/ECT on 07/21/2000 10:10 AM -----

	Dan J Hyvl
	07/21/2000 09:50 AM

		 To: Debra Perlingiere/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT
		 cc:
		 Subject: FUNNY

OHHHH - This is sooo funny!! I think that got the characters and the meeting
agenda from here at NASA.  Actually I think I have been to a meeting like
this!!!! HAHAHAHAHAHA!!
Have a good weekend!!

-Donna

>  <<Tso Meeting.exe>>  <<Chess.gif>>
>
> Joshua "Ayatollah of Rock and Rolla" Heck
> Technical Services and Operations
> Universal Weather and Aviation
> Palm e-mail - TSO1@palm.net
> (713)-944-1622 ext. 3673 (Work)
> (281)-788-4375 (Cell)
> (800)-222-6000 (E-Voicemail)
> Mailbox# 281-788-001
>
>

 - Tso Meeting.exe
 - Chess.gif


Are you kidding? It is Columbus day-- there is no one to be found at the PUC.

	Jeff Dasovich@ENRON
	10/09/2000 10:57 AM

		 To: Richard B Sanders/HOU/ECT@ECT, James D Steffes/NA/Enron@Enron
		 cc:
		 Subject: Re: FW: Enron Proposals Regarding Document Subpoenas

Greetings:
Any word about whether the PUC bought our proposal?
Best,
Jeff


Rick:

I shall keep you posted with info as they become available.

Brgrds

AI
----- Forwarded by Amr Ibrahim/ENRON_DEVELOPMENT on 07/03/2001 05:18 PM -----

	K Seethayya
	07/03/2001 08:26 AM

		 To: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc: Mohan Gurunath/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ashok
Mehta/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jaya
Kumar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mrudula
Gadade/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Amr
Ibrahim/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ritu
Kalia/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 Subject: Status of Appointments

Wade: The status of appointments is as follows:

STATUS OF APPOINTMENTS FOR DR. KEN LAY

NAME OF THE OFFICIALS	STATUS	REMARKS
Hon,ble Prime Minister and /or  Mr. Brajesh Mishra, advisor to PM. 	The
request is under examination	Likely to hear from PM Office by tomorrow.
Shri Suresh Prabhu
Power Minister	July 9, 2001
	5 p.m.	Confirmed
Shri Yashwant Sinha
Finance Minister	Agreed to meet .  Exact time to be confirmed	The meeting would be either 9th
July late evening or 10th July forenoon.

STATUS OF APPOINTMENTS FOR MR. WADE CLINE

NAME OF THE OFFICIALS	STATUS	REMARKS
Mr. A.K. Basu
Power Secretary	Yet to confirm	Likely to give time by tomorrow.  We are trying for Monday
forenoon.
Mr. Ajit Kumar
Finance Secretary	Yet to confirm	Likely to give time by tomorrow.  We are trying for Monday
forenoon.


Hi All,

Reporting has been migrated to a new (it's own)  database server and
access to the old server has been disabled to ensure the currency of data.

HOW THIS MIGHT AFFECT YOU:
If you use tools that link to the Report Settings database, the 'pipeline' DSN on your
PC will need to be updated to point to the new server.  Specifically this applies to
anyone utilizing a Access database to link to the database tables.

RESOLUTION:
We will be targeting known users (Justin's Group and Jay) tomorrow.
However if you experience problems as a result of this change please contact me.

Thanks,
Kim


Have you seen Lisa Trofholz yet?

Amanda K. Huble
Gas Fundamentals
Phone: (713) 853-4384
Pager: (877) 482-0772
Fax: (713) 646-8453