US Legal would have no problem doing business with a Connecticut limited
liability company (subject, of course, to Credit approval).  There are some
legal considerations with respect to certain products.  In order to trade any
financial products the counterparty would have to meet the U.S. "eligible
swap participant" standards (which sets certain asset and net worth levels)
and to trade U.S. power they would need to have a FERC license.  Otherwise,
we have no problem with limited liability companies.

	Stephanie Sever
	11/08/2000 08:52 AM

		 To: Tana Jones/HOU/ECT@ECT
		 cc: Anna Gardiner/LON/ECT@ECT, Claudia Clark/HOU/ECT@ECT
		 Subject: Re: EnronOnline

---------------------- Forwarded by Stephanie Sever/HOU/ECT on 11/08/2000
08:47 AM ---------------------------

Anna Gardiner
11/08/2000 07:06 AM
To: Claudia Clark/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT
cc:
Subject: Re: EnronOnline

Claudia/Stephanie

Please could you let me know who would be the best person in Houston Legal to
contact about this customer.

Thanks

Anna
---------------------- Forwarded by Anna Gardiner/LON/ECT on 08/11/2000 13:09
---------------------------

Robert Quick
08/11/2000 11:58
To: Anna Gardiner/LON/ECT@ECT
cc:

Subject: Re: EnronOnline

Anna I have no problem but cd you also check with ENA Legal in Houston.
Subject to anything they might say, I approve for all products,including
metals (but subject to the Segregation letter) except US power, weather and
credit. tks

Anna Gardiner
07/11/2000 14:31
To: Robert Quick/LON/ECT@ECT
cc: Justin Boyd/LON/ECT@ECT, Enron London - EOL Product Control
Group/LON/ECT@ECT, Andy James/EU/Enron@Enron

Subject: EnronOnline

Robert

In Justin's absence, please could you let me know if we would be able to
consider an application from a Limited Liability Company organized under the
laws of the State of Connecticut, USA?  If possible, could you provide me
with an answer on this today or latest tomorrow as this customer is coming in
to the office on Thursday?  The history behind this customer is that the
original company that Mr Papaeconomou wanted to trade under (NEWCO) was
incorporated in Liberia.  As we do not have the relevant documentation to
support trading from Liberia we rejected his application.  This would be a
good customer for Andy James (Seafreight) to get online and Mr Papaeconomou
is obviously very keen to obtain execute access as soon as possible through a
viable company.

Thanks

Anna
---------------------- Forwarded by Anna Gardiner/LON/ECT on 07/11/2000 14:27
---------------------------

"Lambros Papaeconomou" <papaeconomou@nyfex.com> on 07/11/2000 01:01:45
To: "Anna Gardiner" <anna.gardiner@enron.com>
cc:

Subject: EnronOnline

Dear Mrs. Gardiner,

Thank you very much for your message dated November 6, 2000.  Given the
present legal constraints concerning companies incorporated in Liberia,
would EnronOnline consider an application by a Limited Liability Company
organized under the laws of the State of Connecticut?  If yes would you
please provide the relevant documentation for such entity?

I am looking forward to hearing from you.

Best Regards,

Lambros Papaeconomou, Director
New York Freight Exchange, Inc.
Tel: (203) 961-8848
Fax: (203) 961-8858
papaeconomou@nyfex.com

PS.  I will be in London on Thursday November 9 and have an appointment to
meet with Andy James of Enron Shipping at 3PM.  Should you be available
before or after my appointment, I would very much appreciate to meet you in
person and further discuss the requirements for opening a trading account
with EnronOnline (beyond the company jurisdiction requirement which I hope
would now be solved!)


------------------------------------------------------------------------------
------------------------
W E E K E N D   S Y S T E M S   A V A I L A B I L I T Y

F O R

November 17, 2000 5:00pm through November 20, 2000 12:00am
------------------------------------------------------------------------------
------------------------

SCHEDULED SYSTEM OUTAGES:

ARDMORE DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.

AZURIX: No Scheduled Outages.

EB34 DATA CENTER - FACILITY OPERATIONS: No Scheduled Outages.

EDI SERVER:
Impact:  EDI
Time:  Sat 11/18/2000 at  11:00:00 PM CT thru Sun 11/19/2000 at  1:00:00 AM CT
 Sat 11/18/2000 at   9:00:00 PM PT thru Sat 11/18/2000 at  11:00:00 PM PT
 Sun 11/19/2000 at   5:00:00 AM London thru Sun 11/19/2000 at  7:00:00 AM
London
Outage:  EDI HUB DISK VOLUME INCREASE
Environments Impacted:  Corporate
Purpose: Continued EDI volume increases require the addition of more disk
space for EDI operations.
Backout: Utilize current configuration w/o new HACMP configuration
Contact(s):  Jack Metkus
  Jim Nelson  3-7799  713-327-2007
  Karen O'Grady  5-7149  713-327-4805
  Jack Metkus  3-0362  713-288-0743

EI:
Impact:  EI
Time:  Fri 11/17/2000 at  8:00:00 PM CT thru Fri 11/17/2000 at  9:00:00 PM CT
 Fri 11/17/2000 at  6:00:00 PM PT thru Fri 11/17/2000 at  7:00:00 PM PT
 Sat 11/18/2000 at  2:00:00 AM London thru Sat 11/18/2000 at  3:00:00 AM
London
Outage:  EI Load Balancing
Environments Impacted:  El
Purpose: to stabilize the EI environment
Backout: Remove new 6500s reconnect 5500s as previously installed
Contact(s):  Steve Hardy  713-853-9294  713-415-0672

ENRON NORTH AMERICAN LANS:  No Scheduled Outages.

FIELD SERVICES:  No Scheduled Outages.

INTERNET: No Scheduled Outages.

LOTUS NOTES: No Scheduled Outages.

MARKET DATA: No Scheduled Outages.

NT: No Scheduled Outages.

OS/2:  No Scheduled Outages.

OTHER SYSTEMS: UNIX
Impact:  CORP
Time:  Fri 11/17/2000 at  5:30:00 PM CT thru Fri 11/17/2000 at  7:30:00 PM CT
 Fri 11/17/2000 at  3:30:00 PM PT thru Fri 11/17/2000 at  5:30:00 PM PT
 Fri 11/17/2000 at 11:30:00 PM London thru Sat 11/18/2000 at  1:30:00 AM
London
Outage:  Apply patch to TAS 6.0 on Pluto
Environments Impacted:  UNIX Users
Purpose: Applying patch to fix known issues with 6.0 release.
Backout: Uninstall patch.
Contact(s):  Troy Beyer  713.345.8316  713.406.1782

SITARA:  No Scheduled Outages.

SUN/OSS SYSTEM: No Scheduled Outages.

TELEPHONY: No Scheduled Outages

TERMINAL SERVER:  No Scheduled Outages.

UNIFY:  No Scheduled Outages.

------------------------------------------------------------------------------
-------------------------------------------------------
FOR ASSISTANCE

(713) 853-1411   Enron Resolution Center
(713) 853-5536   Information Risk Management

Specific Applications Help:
Unify On-Call      (713) 284-3757  [Pager]
Sitara On-Call     (713) 288-0101  [Pager]
RUS/GOPS/GeoTools/APRS   (713) 639-9726  [Pager]
OSS/UA4/TARP    (713) 285-3165  [Pager]
CPR      (713) 284-4175  [Pager]
EDI Support      (713) 327-3893  [Pager]
All Other Systems    (713) 563-5797  [Pager]
      or (713) 563-5987  [Pager]


JEff Richter
Prebon sent over a statement where:
Enron buys from EES 12/5-12/30 25 mw of SP-15 at $114.95


Just to confirm we will call you tomorrow morning

David Minns
05/12/2000 05:49 PM
To: Sara Shackleton@ECT
cc: Raymond Yeow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Christian
Werner/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Aquila Weather confirmation

Sara can we schedule a phone discussion Monday 5:30pm (8:30am Tuesday
Sydney)  to go through the floating price issues so we can settle this
confirmation.


Stacey,

Please find attached our outstanding 1st quarter power questions.  As we are
to
sign off on the 10Q by Monday, April 14th, please provide your responses as
soon
as possible.

(See attached file: Updated#2 1st Quarter 2001  Power Questions.doc)

If you have any questions, please call me at X6-6269.  Thank you for your
help.

Jennifer

*******************Internet Email Confidentiality Footer*******************

Privileged/Confidential Information may be contained in this message.  If you
are not the addressee indicated in this message (or responsible for delivery
of
the message to such person), you may not copy or deliver this message to
anyone.
In such case, you should destroy this message and kindly notify the sender by
reply email. Please advise immediately if you or your employer does not
consent
to Internet email for messages of this kind.  Opinions, conclusions and other
information in this message that do not relate to the official business of my
firm shall be understood as neither given nor endorsed by it.

 - Updated#2 1st Quarter 2001  Power Questions.doc


USA: Enron shares in stay in doldrums after downgrade.
Reuters English News Service, 10/29/01
USA: US companies' credit quality to worsen-Moody's.
Reuters English News Service, 10/29/01

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
Bloomberg, 10/29/01

USA: Enron shares drop despite further triage attempts.
Reuters English News Service, 10/29/01

USA: Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
USA: UPDATE 1-Enron says in talks with banks for new credit line.
Reuters English News Service, 10/29/01
POWER POINTS:Enron May Have To Rethink Asset-Light Focus
Dow Jones Energy Service, 10/29/01
OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's
AFX News, 10/29/01
USA: Moody's cuts Enron to 2 notches above "junk".
Reuters English News Service, 10/29/01
UK: Europe energy firms wary of Enron on credit worries.
Reuters English News Service, 10/29/01
BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
Dow Jones Energy Service, 10/29/01

USA: Enron shares in stay in doldrums after downgrade.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Enron Corp.'s share price hovered above seven-year lows touched in earlier trade Monday after Moody's Investor Service cut the credit status of its senior unsecured debt of North America's largest energy trader to two ratings above junk status.
Enron, the largest electricity and natural gas trader in North America, also on Monday said it was in talks with banks to expand its credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron shares were down $1.40, or 9.03 percent, to $14.10 on the New York Stock Exchange, after earlier in the session trading below $14 for the first time since December 1994.
Moody's also warned that it could cut the debt rating again, now downgraded to Baa2, as well as its rating for the Enron's commercial paper.
Enron's credit-worthiness will have a direct affect on its day-to-day trading operations and its trading partners' perception of making good on trades. With a credit rating hovering above junk status, the cost of doing business will soar as trading partners look for increased collateral to back trades.
Last week Enron shares lost almost $14 billion in market value as a series of piecemeal disclosures about the company's involvement in complex partnerships began to trickle out.
Investors have fled Enron's stock in droves following disclosures that the company did off-the-balance sheet transactions with two limited partnerships run by former chief financial officer Andrew Fastow in deals the U.S. Securities and Exchange Commission is now looking into for possible conflict of interest.
Enron compensated its partners in this off-balance sheet structure with the promise of Enron shares, if the value of private investments in several of its units fell below a certain level.
Many industry observers see Enron's request for additional credit, after the company tapped its banks for $3.3 billion last week, as a sign a weakness.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carol Levenson, an analyst with independent research firm gimmecredit.com.

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

USA: US companies' credit quality to worsen-Moody's.
By Jonathan Stempel

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - U.S. corporate credit quality is likely to grow much worse before it gets better, a leading credit rating agency said in a report issued on Monday.
Moody's Investors Service said that in the third quarter, it put on review for downgrade its credit ratings for 122 U.S. companies. At the same time, it put on review for upgrade its ratings for just 22 companies.
That 5.5-to-1 ratio is far greater than the 1.3-to-1 ratio in the second quarter.
In dollar terms, the situation looks more dire. Moody's warned it may downgrade $543 billion of debt, dwarfing the $66 billion Moody's said it may upgrade by 8.2-to-1.
"Particularly in light of September 11, the fourth quarter will be particularly weak for credit rating changes," said John Puchalla, Moody's senior economist. "A wide excess of rating reviews for downgrade over upgrades in the third quarter suggests credit deterioration will persist at least into early next year."
Rating reviews are significant because, unlike actual rating changes, they are not a "lagging" indicator, and suggest the future direction of corporate credit. Moody's normally wraps up its reviews within three months.
U.S. corporate credit quality is falling for many reasons. These include the weakening U.S. economy, an inability of marginal companies to raise cash, debt-financed merger activity and fallout from the Sept. 11 attacks on such industries as airlines, insurance, and travel.
For example, Moody's in July warned it may cut Comcast Corp.'s ratings after the Philadelphia-based company bid $44.5 billion for AT&T Corp.'s cable TV operations.
Then last month, Moody's warned it may cut Chicago-based Boeing Co.'s ratings because of the attacks' potential impact on demand for commercial airplanes.
In the third quarter, Moody's warned it may cut its ratings of 54 speculative-grade, or "junk"-rated, companies, and raise the ratings of just 11. For investment-grade companies, the gap was even more yawning: 68-to-11.
And in the fourth quarter? Through Friday, Moody's warned it may downgrade 47 companies and raise a mere four. On Monday, it downgraded embattled energy trading giant Enron Corp., and put all of its ratings on review for another downgrade.
Puchalla, however, said the decline could slow next year, in part because interest rates are low and companies are managing their balance sheets more conservatively.
"Lower borrowing costs and slowing debt growth should reduce debt servicing costs, and fiscal stimulus from the federal government should boost business revenues," he said. "That is a positive for credit quality."
The third quarter was the 14th in a row when corporate rating downgrades outpaced upgrades. The record is 19 quarters, set between 1988 and 1993.

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

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)
2001-10-29 12:16 (New York)

Enron's Lenders to Demand Harsher Terms, Analysts Say (Update1)

     (Updates with analyst comment in fifth paragraph.)

     Houston, Oct. 29 (Bloomberg) -- Enron Corp., which can't get
low-interest, short-term loans, faces skeptical lenders who will
demand increasingly harsher terms as the largest energy trader
tries to get cash in the bank, credit analysts said.

     ``Anyone providing new funding is going to be nervous,'' said
Sean Egan, managing director at Egan-Jones Ratings Co. ``It's
likely that lenders are going to demand collateral.''

     Enron is trying to get $1 billion to $2 billion in loans from
Citigroup Inc., J.P. Morgan Chase & Co. and other banks to calm
investors after a 52 percent drop in the company's stock since
Oct. 17, the Wall Street Journal reported. The company needs cash
every day to settle commodities transactions and to keep trading
partners.

     The company on Thursday tapped $3.3 billion in bank credit
lines last week to pay off about $2 billion in commercial paper,
or short-term corporate loans. A week ago, the Enron said the U.S.
Securities and Exchange Commission had began an inquiry into
related-party transactions. They cost the company $35 million and
$1.2 billion in lost shareholder equity.

     ``Banks are in the driver's seat, and Enron is a little
desperate,'' said Peter Petas, a debt analyst at CreditSights Inc.
``I think their interest rates for loans would go up.''

                       Sells Assets for Cash

     Companies in Enron's situation often agree to other bank
terms in order to secure loans, Petas said. Those can include
agreeing to use proceeds from selling assets to pay debt and
putting up assets as collateral.

     Enron is attempting to sell assets to raise cash. Two related
partnerships, Osprey and Marlin, depend on selling power plants
and similar assets to repay $3.3 billion borrowed to buy the
plants. Enron may have to pay any difference between the debt and
sales proceeds.

     The company plans to complete the $2.9 billion sale of
Portland General Electric, an Oregon utility, to Northwest Natural
Gas Co. next year.

     Shares of Houston-based Enron fell $1.30, or 8.4 percent, to
$14.10 in midday trading. Earlier, they touched $13.55, down 12
percent. The company's credit rating was cut by Moody's Investors
Service after it wrote down the value of its assets.

     The stock had tumbled 80 percent in the past 12 months.

--Russell Hubbard in the Princeton newsroom, 609-750-4651

USA: Enron shares drop despite further triage attempts.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Enron shares slipped to a new six-year low in early trade as North America's largest natural gas and electricity trader said it was talking to banks about tapping additional credit lines to ease financial concerns that have sent its stock slumping more than 50 percent in the past two weeks.
Enron's shares were trading down 90 cents, or 5.8 percent, to $14.60 in early morning trade on the New York Stock Exchange. Shares crashed through $15, a low not seen since February 1995.
Last week, Enron shed almost $14 billion in market value as its stock price tumbled more than half since last week, when a series of piecemeal disclosures about its involvement in complex partnerships began to trickle out.
However, many industry observers see Enron's request for an additional credit after tapping its banks for $3.3 billion last week after as a sign a weakness not of strength.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead ... it's an act of desperation," said Carole Levenson, research analyst with independent research firm gimmecredit.com.

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

USA: Enron says in talks with banks for new credit line.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a move to shore up investor confidence.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on a new credit line.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
Enron shares sank 50 cents, or 3.2 percent, to $15 in early morning trade on the New York Stock Exchange. ((David Howard Sinkman, New York Newsdesk 646-223-6094)).

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

USA: UPDATE 1-Enron says in talks with banks for new credit line.

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Energy trading giant Enron Corp. said on Monday it is in talks with banks for additional credit, in a new move to shore up investor confidence after it tapped about $3 billion in credit last week, and to stop a plunge in the company's stock that set new six-year lows.
Enron declined to comment on the size of the credit line, which banks it is in talks with and when it expects to complete an agreement on the new credit line.
Enron shares crashed through a psychological barrier of $15 a share, shedding $1.66, or 10.65 percent, to $13.85 in early morning trade on the New York Stock Exchange. The stock has lost more than half of its value in the past two weeks, losing more than $14 billion in market capitalization.
"We want to restore investor and market confidence and nothing instills confidence like cash," said Enron spokesman Mark Palmer in Houston.
Enron shares have tumbled since the company reported its first-quarterly loss in more than four years on Oct. 16. The company also wrote down $1.2 billion in equity, including transactions with partnerships formerly run by its chief financial officer who was forced to step down from Enron last week.
The sell-off was sparked by investor concern about the transparency of the transactions, which the Securities and Exchange Commission is examining. Enron last week replaced CFO Andrew Fastow as part of efforts to restore investor confidence.
The Wall Street Journal reported Monday the beleaguered energy trader is negotiation with bank for a new credit line of between $1 billion to $2 billion to prop up share prices following last week's selling that sent shares plummeting.
Enron said it drew about $3 billion in new credit lines last week, and has a net cash liquid position in excess of $1 billion.
"Clearly, both the stock and bond market view Enron as being in dire straits," said independent research firm Gimme Credit analyst Carol Levenson.
"We are not of the opinion that drawing down all of one's backup bank lines is a demonstration of financial strength, but instead it's an act of desperation."

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

POWER POINTS:Enron May Have To Rethink Asset-Light Focus
By Mark Golden

10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

NEW YORK -(Dow Jones)- On the face of things, it's hard to understand the stock market's headspinning reaction to Enron Corp.'s (ENE) revelation of some bad news in recent weeks.
Why the talk of a "death spiral" for North America's premier energy trading company? The stock price of Cisco Systems Inc. (CSCO), for example, saw an almost identical drop over a similar 12-month period. Nobody questioned the viability of Cisco.
The difference is that over the past few years, Enron has redefined itself as a company that runs on financial and intellectual muscle - not hard assets - and that focus is getting the company into trouble now that its credibility is in question.
If you're buying network components, you can probably stand some ambiguity in the finances of your supplier. After all, you're buying something you can touch. But if you're buying power or gas, what you're really buying is a commitment to deliver. If your supplier doesn't come through when the market gets tough, you're left totally exposed. In Enron's energy trading business, then, credibility at every level is critical.
For now, Enron looks to be more than viable. But the company's asset-light strategy might not be. Gross profits from trading have shrunk to 1.65% in the third quarter from 5.26% in the first quarter of 1998. Meanwhile, asset-heavy energy companies like Mirant Corp. (MIR) and Calpine Corp. (CPN) successfully use trading to optimize the performance of power plants and other infrastructure.
Two weeks ago, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. That didn't send investors running, however. In fact, its stock price rose a bit on the news.
What hurt was the disclosure that Enron had reduced its net assets, or "shareholders' equity," by $1.2 billion as a consequence of unwinding positions in partnerships headed by former Chief Financial Officer Andrew Fastow. That, along with warnings of possible downgrades by credit ratings agencies and an inquiry by the Securities & Exchange Commission produced a $15.6 billion drop in Enron's market value.
On Monday, Moody's Investors Service followed through by downgrading its rating on Enron's senior, unsecured long-term debt to Baa2 from Baa1, leaving it two steps above junk-bond levels. The agency kept Enron's ratings on watch for further downgrade.
Long-Running Concerns

A 50% hit to shareholder value still seems like an overreaction to a 10% reduction in shareholders' equity. The stock price reflects the expectation of additional losses to be reported and Enron's loss of credibility. Enron executives in a conference call Tuesday insisted that the worst was behind them, but few on the call believed that.
For some analysts, Enron's revelations only fed long-running concerns about the company's lack of financial disclosure.
Cary Wasden, managing partner of Reed Wasden Research, has had a "sell" recommendation on Enron since March. Unlike the analysts at big Wall Street firms, Wasden isn't in the business of selling stock. His firm isn't involved in brokerage and isn't a hedge fund. Wasden gets paid for his research, and the company doesn't invest in the securities it covers.
A main Wasden concern with Enron is that the company has regularly included the proceeds from one-time sale of physical assets in operating income. His belief is that Enron has dramatically inflated its earnings for the past couple of years - a concern to which an Enron spokeswoman couldn't immediately respond.
"Don't believe by any means this is the end of the story," Wasden said.
Wall Street sell-side analysts have largely kept Enron as a "buy" or "strong buy" as the stock fell from $90 to $20. But even they are expressing concerns about the quality of Enron's reporting.
For now, the plunge in the price of Enron's shares and bonds, which last week started trading like junk-rated debt, hasn't hurt its credit standing with energy trading partners.
"We haven't changed our thinking regarding Enron or our policies and practices. We're watching it, and so is everybody else, but they are a solid company," Reliant Energy Inc. (REI) spokesman Richard Wheatley said in a typical reaction. "This is unfortunately a feeding frenzy regarding some dealings that I'm sure Enron will be able to come out of at some point."
Keeping Talent A Challenge

Enron is a big company - far too big to ignore. But continued deterioration in the price of its shares and bonds could lead counterparties to restrict their traders' transactions with Enron. If the company's investment-grade bonds continue to trade near levels traditionally considered distressed, risk managers won't be able to ignore it, whatever else Moody's does.
Assuming that doesn't happen, Enron still faces a tough road ahead. Like all companies, Enron is the combination of capital and talent. For financial companies, talent is the more important ingredient, and Enron has been suffering damage to its talent for some time.
New Chief Executive Jeff Skilling left in August, and a handful of his key lieutenants left earlier in the year. The losses can be expected to continue. Much of the top management cashed out when the company's stock price was high and moved on. Now middle management on down is angry and anxious to move on, if they haven't already.
Over the years, Enron has compensated its very talented labor with stock options to make up for base pay considered low by the industry. Those options are now nearly worthless. If Enron's debt-service costs rise, the company could struggle to attract the talent needed to generate income in its core business of trading energy in North America.
Some analysts would like to see more turnover at the very top. When Skilling left, nobody believed Skilling or Chairman Kenneth Lay's assurances that it was for "personal reasons." When CFO Fastow was forced out of his position last week, Lay said, "In my continued discussions with the financial community, it became clear to me that restoring investor confidence would require us to replace Andy as CFO."
That's putting words in Wall Street analysts' mouths. Who thought scapegoating Fastow was really the answer?
"I don't know anybody who said that," Wasden said. "What did the CFO do, what did Skilling do, that Ken Lay wasn't part of?"
Real change will have to come from without, Wasden said.
"Enron has been a cult, more than a company," he said. "Recruiting from within does nothing to change the company, it just changes the disciples. Enron needs to pull some top talent from outside."
Nevertheless, Wasden thinks Enron's stock has reached its natural floor and, if the company starts disclosing how it really makes money, it can recover over time.
"There are a lot of earnings that can be wrung out of really strong operating assets, like pipelines and power plants," he said.
That means paying more attention to the assets that Enron has spent the past few years denigrating. Given the bind Enron is in, Lay won't have much choice. Enron will survive, but it won't be the same company at all.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com

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

OFFICIAL CORRECTION Enron long-term ratings downgraded to Baa2 - Moody's

10/29/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

(Moody's corrected its stance on Enron ratings to a downgrade)
NEW YORK (AFX) - Moody's Investors Service said it has lowered the senior unsecured long-term debt ratings of Enron Corp from Baa1 to Baa2 following a deterioration in Enron's financial flexibility since the company announced significant writedowns as well as equity charges in previously undisclosed partnership investments.
The long-term debt ratings remain on review for further downgrade, Moody's said.
Moody's also placed the company's Prime-2 rating for commercial paper on review for downgrade.
Moody's initially placed Enron's long-term debt ratings on review on Oct 16. The write-downs and equity charges led to a substantial loss in investor confidence that has led to a more than halving of Enron's share price and difficulties in rolling over commercial paper, according to Moody's.
In response to these events, Moody's said Enron has shored up its near-term liquidity position by drawing down on all of its committed revolving credit facilities and buying back its outstanding commercial paper, leaving the company with a net cash position of approximately 1.2 bln usd.
Moody's said it plans to focus on management's success in lining up further liquidity support and on their ability to retain credit availability from their major counterparties.
aw/gc For more information and to contact AFX: www.afxnews.com and www.afxpress.com

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

USA: Moody's cuts Enron to 2 notches above "junk".

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 29 (Reuters) - Moody's Investors Service on Monday cut embattled energy trading giant Enron Corp.'s senior unsecured debt rating to two notches above junk status, and warned it may cut that rating again, as well as its rating for Enron's commercial paper.
The rating agency cut Houston-based Enron's senior unsecured debt to "Baa2" from "Baa1," and said it may cut Enron's "Prime-2" commercial paper rating, which affects short-term debt. Its rating actions affect $13 billion.
Moody's said Enron is suffering from deteriorating financial flexibility since it announced big write-downs and equity charges from previously undisclosed partnership investments this month. This triggered "difficulties in rolling over commercial paper," Moody's said.
Enron, which has about $63.4 billion in energy assets, said on Monday it is talking with banks to get more credit, after last week drawing down $3 billion from a bank credit line to buy back its outstanding commercial paper.
Its shares traded Monday on the New York Stock Exchange at $13.75, down $1.75, or 11.3 percent. They have fallen 62 percent since Oct. 12, from $35.81.
Rating agency, Standard & Poor's, on Thursday revised its outlook for Enron's ratings to "negative" from "stable."

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

UK: Europe energy firms wary of Enron on credit worries.
By Stuart Penson

10/29/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 29 (Reuters) - Energy companies in Europe are shying away from trading with troubled U.S. energy group Enron amid concerns about the company's credit status, industry sources said on Monday.
Several large energy groups have frozen their dealings with Enron - one of Europe's biggest gas and power traders - as they hold urgent talks with the U.S. group about setting up new credit arrangements, the sources said.
"I think Enron's approach is to get the major counterparties back on board as quickly as possible and then hope the smaller ones will follow," said the head of risk management at one UK utility that halted its trade with Enron last week.
"They are talking with us about bank letters of credit," he said. "The people that are still trading with them are doing so on a very restrictive basis."
A spokesman for Enron's European headquarters in London headquarters declined to comment.
Reluctance to trade with Enron in Europe comes as the company tries to rebuild investor confidence after its stock hit five-year lows.
Triggering the slide was news last week the U.S. Securities and Exchange Commission is investigating huge losses relating to a private equity operation run by its former chief financial officer.
Houston-based Enron trades a large amount of its volume in the U.S. and Europe through its Internet EnronOnline system.
Last Friday the company said trade on EnronOnline was above average levels with more than 8,400 transactions at a notional value of approximately $4 billion.
Traders said Enron's plight could hit liquidity in European gas and power markets, where liberalisation has unleashed rapid growth in energy trading in the last couple of years.
One industry source cited a brokers list showing eight companies in the UK electricity market had put on hold their trading Enron, which is among the biggest five traders in the market.
In mainland Europe, where Enron has been a major driver of liquidity, potential counterparties are treading with care.
"We are avoiding them as counterparties - either by not trading with them or by using a 'sleeve' (a third party trader)," said a senior trader at one of Germany's big utilities, who declined to be named.
French traders said wariness about dealing with Enron had dampened liquidity although Enron was still in the market on Monday morning.
"Enron is a major player so counter parties are looking to see if there is a problem," said one French trader.

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

BANDWIDTH BEAT: Enron Puts Spotlight Back On Broadband
By Michael Rieke

10/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A Dow Jones Newswires Column

HOUSTON -(Dow Jones)- Thanks to Enron Corp. (ENE), the broadband sector again looks like a place to make money.
But it won't be traders who will cash in on this new potential. It will be class-action attorneys. They're already lining up to sue Enron in at least five shareholder suits.
As of Oct. 25, two of lawsuits had been filed against Enron in federal court and three more in Texas state court. Most of them name as defendants Ken Lay, Enron's longtime chairman, former Chief Executive Jeff Skilling and Andrew Fastow, Enron's chief financial officer until he was put on leave of absence Oct. 25.
Still another suit, which isn't a class action suit, was filed naming as defendants members of Enron's board of directors.
All the lawsuits concentrate on private investment partnerships Enron set up, many of them managed by Fastow. Most of the suits contend that it was a conflict of interest to have the Fastow partnerships doing complicated hedging transactions with Enron.
The transactions named in the lawsuits involved billions of dollars of underperforming assets in broadband, water and other Enron investments.
Fastow operated on both sides of some of those transactions. As Enron's chief financial officer, he was being paid to manage the corporation's finances. As general partner of two LJM partnerships, he managed the counterparties to billions of dollars of trades with Enron. He shared in profits of those partnerships.
When investors began demanding information about the transactions, Enron's share price began to slide. With the heat on, Enron recently unwound the trades with the partnerships and booked $544 million related to losses from early termination of the deals, among other things.
That's when the class action attorneys went to work. So far, at least 14 law firms are representing the plaintiffs. Enron didn't respond to calls asking about the lawsuits.
Among the law firms representing plaintiffs is Milberg Weiss Bershad Hynes & Lerach, which put out a news release announcing its lawsuit. The release points out that the firm has been responsible for recovering more than $30 billion from class action lawsuits.
The lawsuits bring up questions about the bandwidth trading market. Some of the deals with the LJM partnerships run by Fastow "purportedly involved hedging transactions in the broadband market," according to Abrams and Franks v. Enron et al.
That could tie into questions that have lingered in the bandwidth market for months. Market skeptics have said Enron and other energy companies are the only ones trading bandwidth.
Enron has reported that it has been trading with a growing number of counterparties, a total of 120 in the second quarter of this year, according to Enron.
Now market watchers will want to know if any of Enron's trades were done with the LJM partnerships managed by Fastow.
They will also want to know how many bandwidth trades were done with Chewco Investments. That Houston company, according to a report in The Wall Street Journal, was managed by Michael Kopper and was set up in 1997 when Kopper was a managing director with Enron's Global Equity Markets Group. He left Enron earlier this year to work for partnerships run by Fastow.
Do the plaintiffs' attorneys know whether Enron was trading bandwidth with any of those investment partnerships?
"I think if is too early to tell," Thomas Bilek of Hoeffner & Bilek told Bandwidth Beat. "As you know, (information) is coming out in drabs and dribbles from Enron."
It could be several months before plaintiffs' attorneys get a chance to ask Enron officials those questions, Bilek said.
It's also too early to tell what potential damages plaintiffs could win, said Steven Schulman, an attorney with Milberg Weiss. "At this point, you can only talk about it in terms of (shareholder) losses, and the losses are in the billions."
Total losses will depend on the price each shareholder plaintiff paid for the stock and the price at which each shareholder later sold the stock.
Enron's share price topped out between $90 and $91 in the summer of last year. It set a 52-week low Oct. 26 at $15.04. That spread leaves plenty of room for losses.
Schulman told Bandwidth Beat that the record for losses in shareholder cases is $11 billion in a case involving Cendant Corp. (CD). Damages are usually a substantial portion of losses, Schulman said.
"Whether (the Enron case) is bigger or less, I couldn't opine," he said. "This is a big case, by any means."
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@dowjones.com

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


The Payment status has changed on the following report:

Status last changed by:  System
Expense Report Name: RS122701
Report Total: $420.00
Amount Due Employee: $420.00
Amount Approved: $420.00
Amount Paid: $0.00
Approval Status: Approved
Payment Status: Processed

To review this expense report, click on the following link for Concur Expense.
http://expensexms.enron.com


Start Date: 1/23/02; HourAhead hour: 9;  HourAhead schedule download failed. Manual intervention required.


paid, 343.09, which i believe is the balance due, as we discussed. plz call
when you get a chance.  i need to make plane res to new york.  thx, jeff


We appear to have some confusion regarding the June General Counsel Luncheon.  Since I have a conflict and cannot attend anyway, Rex and I decided to keep his planned lunch at La Mora.  Have a great lunch at La Mora on Tuesday.  Regards,,,,, Julia

Thank you,

Julia Heintz Murray
Managing Director and General Counsel
Enron Wholesale Services
Enron Industrial Markets LLC
1400 Smith Street, EB3838
Houston, TX  77002
(713) 853-4794
Fax:  (713) 646-3393
julia.murray@enron.com


Louise -

I checked with Tammie last week and she indicated that you have been receiving checks for your expenses through October 31, 2001.  As of November 1, 2001, Tammie has requested that your expenses be direct deposited.

Can you please confirm that this is the case?

Thanks -
Amy


**********RESEARCH REPORT**********

from STOCKFIRST and TheInvestorOnline
www.stockfirst.com
www.theinvestoronline.com
_____________________________________

eLEC Communications Corp.
(Nasdaq: ELEC)
Recommended: 01/04/01 - $1.03
Price as of: 06/01/01 - $1.01
Target: $3.00
52 Wk Range: $0.406 - $3.469

Market Capitalization - $14.9M
Shares Outstanding - 14.9M
Float - 13.3M
Daily Volume (3-month avg) - 48.5K
Daily Volume (10-day avg) - 41.0K
Delayed Quote - http://quote.yahoo.com/q?s=elec&d=v1

* Financial Summary

eLEC Communications Corp. is a full-service telecommunications
company that focuses on developing integrated telephone service in
the local exchange carrier industry.  eLEC reported revenues for the
first quarter ended February 28, 2001, of $4,730,647, an increase
of $2,504,414, or 141%, over the revenues from the first quarter of
fiscal year 2000. The company also reported a net loss of
($1,473,772), or ($0.10) per share, and an EBITDA loss of
($1,105,976), or ($0.08) per share for the quarter ended February
28, 2001. These amounts compare to a net loss of ($648,900), or
($0.06) per share and an EDITDA loss of ($524,372), or ($0.04)
per share for the prior year quarter.

The gross profit increased by approximately $933,000 to
$1,674,808, or 35.4% of revenues, for the fiscal 2001 quarter, from
$741,777, or 33.3% of revenues, for the fiscal 2000 quarter.

* Business Description

eLEC Communications Corp. is a full-service telecommunications
company that focuses on developing integrated telephone service in
the emerging competitive local exchange carrier industry.  The
Company offers an integrated set of telecommunications products
and services, including local exchange, local access, domestic and
international long distance telephone, calling cards, paging, Internet
access, dedicated access, high speed access via Digital Subscriber
Lines (DSL), Website design, Website hosting, Internet-based
yellow pages directory listings and other enhanced
telecommunications services.

eLEC is a competitive local exchange carrier, a "CLEC," and they
are building the company using the unbundled network element
platform ("UNE-P").  The UNE-P service offering is the most rapid
and profitable way to enter a new market.  The Company believes
that it is more important to build a customer base first - before
building the network.  Using this method, eLEC is able to use their
capital resources wisely and avoid the high cost of underutilized
facilities.  Furthermore, eLEC believes that a large portion of their
UNE-P base will eventually migrate to packet telecommunications
offerings, such as local voice over DSL.  Therefore, the most
intelligent way to build their business is to lease circuit-switched
equipment via UNE-P and build a packet-switched network.

Visit the Company's website at www.elec.net

More from Investors Spotlight -
www.theinvestoronline.com/research/elecspotlight.htm

* Analyst Summary

eLEC's chart has show quite an improvement lately and is now in
the midst of what technicians refer to as a flag formation.  A flag
formation is one in which the stock is consolidating in a rectangular
tight range for 3-15 days following a big move.  This is considered a
bullish consolidation when following an up-move and is usually the
half way point in a move.  If the stock breaks out to the upside, look
for a probable move from the breakout equal to the distance from
the beginning of the move to to the top of the flag, which would be
$1.29 [See chart ($0.53 to $0.92 = $0.39, $0.92 + $0.39 = target of
$1.31)].  Flags reach their target 86% of the time and once a
breakout occurs only fail 4% of the time, so this stock looks good
right now. Bullish consolidating flags like this one breakout to the
downside 14% of the time. The stats are with us on this one. Good
luck.  We believe the stock has a $2.50 a share value on price to
sales and a $3.00 discounted value on price to book.  We also
believe it's a speculative value play based on sales growth and assets
alone.  If they reach profitability in 2001, they could be valued near
$7.
Much of eLEC's value resides in their approach to the market,
which allows for rapid market entry via the UNE-P service offering,
with high growth potential, a very large addressable market, and
high margins.  Additional strength is provided due to no stranded
plant costs, no costs associated with technological obsolescence and
no costly delays that occur when a company has to install equipment
in the field.  The Company  will reach breakeven much sooner than
most companies and they will do it with flexibility - which is very
important in a dynamic marketplace. eLEC is not captive to their
own network, like many other companies. Other companies have a
relatively small addressable market and are forced to overspend on
marketing in order to attract customers to their network. eLEC has a
ubiquitous reach in each state in which they are licensed.

85 million lines as an addressable market in 26 states. When eLEC
receives licensing in all 48 states, the addressable market may be
approaching 200 million lines.  Rapid market entry, high margins,
ubiquity, no equipment installations, no salesmen carrying around
network maps, the ability to telemarket the entire state, ability to
service multi-location businesses within the state and with multistate
presences. eLEC attracts customers first, building a customer base,
instead of putting equipment in the field first, like everyone else has.
The Company is, in essence, a virtual LEC.  They are using the
existing infrastructure of the incumbents to further their business so
they can 'own' their customers.  They are provisioning DSL in
Orlando FL from Norwalk, CT, without having any equipment in
the field (The Company is virtual). eLEC runs their DSL pipe thru 3
ATM clouds owned by the incumbents. eLEC controls the
bandwidth and services for the customer by capping both ends of
the pipe. We know of no one else who is doing this. eLEC
Communications Corp. is creative, flexible and talented.  The
spending to build networks has come back to haunt many of those
that went with the network first plan.  Those companies are now
scrambling to stay alive.  eLEC's model of building the customer
base first appears to be the answer.

Kaufman Bros, LP recently initiated coverage with a Buy, go to
www.kbroresearch.com for report.

Visit the Company Website at www.elec.net and go to
www.theinvestoronline.com/research/elecrep3.html to see complete
Research Report.
--------------------------------------------------------------------------------

IMPORTANT DISCLAIMER

TheInvestorOnline is an independent electronic publication
providing information on selected public companies.

Any company profiled by TheInvestorOnline pays cash or stock
consideration for the electronic dissemination of the company's
information for a specified time period and/or our comments about
the company and/or our development of the company's website.
Section 17(b) of the Securities Act of 1933 requires that
TheInvestorOnline fully disclose the type consideration (i.e. cash,
free trading stock, restricted stock, restricted stock with registration
rights, stock options, stock warrants, or other type consideration)
and the specific amount of the consideration our company receives
or will receive, directly or indirectly, from an issuer, underwriter, or
dealer.

No information contained in our website or our publications should
be considered as a solicitation to purchase or sell the securities of the
profiled companies.

TheInvestorOnline is not a registered investment advisor or a
registered securities broker dealer. We do not undertake or represent
to make investment recommendations or advise pertaining to the
purchase or sale of the securities mentioned in our web site or
publications. The information contained in our website and
publications are carefully compiled by TheInvestorOnline based
upon sources that we believe to be reliable. TheInvestorOnline,
however, does not guarantee the accuracy of any information
contained in our website or publications.

Moreover, TheInvestorOnline does not endorse, independently
verify, or assert the truthfulness or reliability of any statements or
data made by us or the profiled companies in our website or
publications. Investors should not rely solely on the information
contained in our website or publications. Instead, investors should
use the information provided on the profiled companies only as a
starting point for conducting additional research that will permit
them to form their own opinions regarding an investment in the
profiled company's securities. The receipt of the information
contained in our website or publications shall not create, under any
circumstance, any implication that there has been no change in the
affairs of the profiled company since the date of our comments
regarding the company or the date of the profiled company press
releases or other information disseminated via our website or
publications.

The information contained in our website and publications may
pertain to small cap and/or thinly traded securities which by their
very nature involve an extremely high degree of risk. An investment
in these type of securities could result in the loss of some or all of an
investment in the company. In addition, due to the illiquid nature of
some of these securities, an investor may find encounter difficulties
in liquidating the securities.

TheInvestorOnline may liquidate the stock consideration it receives
at any time it deems it appropriate to do so. The liquidation of our
stock may have a negative impact on the securities of the company
liquidated, including decreased market value and/or dilution of the
company's securities.

The following companies have paid, or have agreed to pay the
parent company of TheInvestorOnline to: distribute the company's
information and reports in an email newsletter; post company links
on featured companies page, and compile and distribute quarterly
reports in an email newsletter.

eLEC Communications Corp. has paid $17,500 cash and agreed to
pay $57,500 in free trading company stock

---
You are currently subscribed to stockfirst as: alewis@ect.enron.com
To unsubscribe send a blank email to leave-stockfirst-37848R@mail.stockadvisor.ws


The trade confirmation for your order(s) is now available online at
etrade.com(sm).
Use the URL(s) below to view (customer log on required).

The information contained in this confirmation shall be binding upon you if
you do not object,
either in writing or via electronic mail, within two (2) days after the
confirmation is first received by you.

Document ID: 20010417023202260880085664
https://trading.etrade.com/cgi-bin/gx.cgi/applogic+accttaxbridge?page=CONFIRM&
cmd=display&doctype=cnf&document_id=20010417023202260880085664
Document ID: 20010417023202260880085667
https://trading.etrade.com/cgi-bin/gx.cgi/applogic+accttaxbridge?page=CONFIRM&
cmd=display&doctype=cnf&document_id=20010417023202260880085667
Document ID: 20010417023202260880085666
https://trading.etrade.com/cgi-bin/gx.cgi/applogic+accttaxbridge?page=CONFIRM&
cmd=display&doctype=cnf&document_id=20010417023202260880085666
Document ID: 20010417023202260880085665
https://trading.etrade.com/cgi-bin/gx.cgi/applogic+accttaxbridge?page=CONFIRM&
cmd=display&doctype=cnf&document_id=20010417023202260880085665


Sara,

I have attached an ISDA worksheet for EnMax Energy Corporation, Carol and
Susan Flynn had worked on an ISDA to EnMax Power, although per the request of
Derek Davies in the Enron Canada office, this should now be EnMax Energy with
a guaranty from EnMax Corp.  Also, this agreement is being executed in
conjunction with the Canadian Power PPA's that are coming online.

Please call with any questions.

Russell


Kate, I believe all taken care of.   I looked in audit viewer and it looks
like tom changed/flipped the prices.  Thanks for following up.
Stephanie

   Kate Symes                01/03/2001 06:20 PM

To: Stephanie Piwetz/HOU/ECT@ECT
cc:
Subject: Re: Checkout for 12/22

I just wanted to check in with you before changing these deals, since it's
been a few days since your e-mail. Tom Alonso wasn't in the office today and
I tried reaching him by phone to confirm. These are the prices he has in his
trade log, so as far as I can tell they are correct. Are you saying that
these prices need to be switched? Please let me know, and I'll fix it right
up.

Thanks,
Kate

Stephanie Piwetz   12/22/2000 08:36 AM

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

Subject: Checkout for 12/22

Kate, checked out with Amerex
Tom Alonso:
484585.01   Enron sells Constellation               price: 260.00

484586.01   Enron sells Dynegy                         price: 250.00
price just flipped.

Thanks


Third sound byte from bottom

 -----Original Message-----
From: 	Adams, Matthew
Sent:	Tuesday, November 27, 2001 12:08 PM
To:	Hayden, Frank
Subject:	And the link

(go to the "That's just great" sound file)

<http://www.ozcraft.com/scifidu/aliens.html>


the org charts that you sent yesterday - were there Netco or Netco
Light?

-----Original Message-----
From: Louise.Kitchen
Sent: Wednesday, January 09, 2002 1:38 PM
To: Dow, Colette
Cc: Louise.Kitchen
Subject: FW: Proformas

>  -----Original Message-----
> From: 	Kitchen, Louise
> Sent:	Wednesday, January 09, 2002 10:51 AM
> To:	'pat.odonnell@ubs.com'
> Subject:	Proformas
>
> Pat
>
> For your information, I have attached the current proformas (UBS and
the standard).  I know John and Mike have had a lot of conversations on
this - essentially where we stand is that the work has been done to
complete the commercial reductions (by name) but the non-commercial
groups have just been reduced across the board and we intend to start
the process today on how to cut the numbers on the non-commercial side.
 The theory was that communicating the Netcolite concept was something
we would not do until we had a bit more clarity.  Webb knows but that's
about it on the non-commercial side.
>
> Hope this helps.
>
> Louise
>
> >  <<ubsplan.xls>> > >  <<proforma.xls>>
>
> Louise Kitchen
> Chief Operating Officer
> Enron Americas
> Tel:  713 853 3488
> Fax: 713 646 2308
>

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant
affiliate and may contain confidential and privileged material for the
sole use of the intended recipient (s). Any review, use, distribution
or disclosure by others is strictly prohibited. If you are not the
intended recipient (or authorized to receive for the recipient), please
contact the sender or reply to Enron Corp. at
enron.messaging.administration@enron.com and delete all copies of the
message. This e-mail (and any attachments hereto) are not intended to
be an offer (or an acceptance) and do not create or evidence a binding
and enforceable contract between Enron Corp. (or any of its affiliates)
and the intended recipient or any other party, and may not be relied on
by anyone as the basis of a contract by estoppel or otherwise. Thank
you.
**********************************************************************

Visit our website at http://www.ubswarburg.com

This message contains confidential information and is intended only
for the individual named.  If you are not the named addressee you
should not disseminate, distribute or copy this e-mail.  Please
notify the sender immediately by e-mail if you have received this
e-mail by mistake and delete this e-mail from your system.

E-mail transmission cannot be guaranteed to be secure or error-free
as information could be intercepted, corrupted, lost, destroyed,
arrive late or incomplete, or contain viruses.  The sender therefore
does not accept liability for any errors or omissions in the contents
of this message which arise as a result of e-mail transmission.  If
verification is required please request a hard-copy version.  This
message is provided for informational purposes and should not be
construed as a solicitation or offer to buy or sell any securities or
related financial instruments.


-----Original Message-----
From: 	Nicolay, Christi L.
Sent:	Monday, October 22, 2001 11:59 AM
To:	Kitchen, Louise; Dietrich, Janet; Delainey, David; SMITH, Douglas; Lavorato, John; Black, Don; Forster, David; Duran, W. David; Belden, Tim; Calger, Christopher F.; Foster, Chris H.; Black, Tamara Jae; Aucoin, Berney C. ; Furrow, Dale; Meyn, Jim; Harvey, Claudette; Presto, Kevin M.; Jacoby, Ben
Subject:	FW: RTO week--State Commissioners

FYI.

TJ and Claudette -- please send to your groups.
Thanks

 -----Original Message-----
From: 	Landwehr, Susan M.
Sent:	Thursday, October 18, 2001 6:19 PM

Thursday Morning session----Meeting with State Commissioners

This session was generally known to be the occasion for state commissioners to vent their frustrations at FERC taking action without including them in the decision making process.  Although the panel notice showed that 5 state commissioners would attend, upon arriving in the hearing room we found that 27 state commissioners were there and ready to claim their 15 minutes of fame.  It was a long morning!  I will include comments or highlights from some of the commissioners below as well as some general thoughts.

Approximately 35 to 40% of the commenters were supportive of FERC and urged them to keep moving forward with their efforts.  Most of these comments came from the Midwest and were somewhat muted or rational in their support.  Everyone else was fairly verbal against FERC, primarily citing that fact that they had been left out of the process, that FERC was moving too quickly, and there was no evidence that there was a benefit to their citizens.  In particular, the commissioners from Maryland and North Carolina delivered highly charged rhetoric. While many would think that the session was extremely negative (our friend Sarah Novosel thought it was disgusting!) in my mind it was similiar to a legislative hearing--allowing alot of whining and then addressing the main themes of discontent such as performing a cost benefit analysis.

Here's some individual comments:

Catherine Riley/Maryland---she started out talking about the fact that she had taken a solemn oath to uphold the constitution when she joined the MAryland commission and immediately implied that FERC was not as diligent or honest as she was in upholding the values of protecting citizens (she was way overboard in the dramatics department).  She then stated that she was not at the meeting to "help you (FERC) backfill your woefully inadequate evidentiary record".  It went on like this for about 15 minutes.  The good part is that she was so personally negative, that her comments will not only be discounted but may be used against her.

Sam Ervin/NOrth Carolina---he was also very negative and he does not believe that there are any benefits to his citizens, that customer choice is never coming to his state, so he will never benefit from an RTO, that his current statutes do not allow any transfer of transmission to an RTO (and I bet if they do, he'll work to change the statutes!) and that the bulk of state commissions are not supportive of FERC. His comments were also pretty brutal, but sugar coated just a bit with southern humor.

Arnetta McRae/Delware---she kept on saying "show me" where the benefits for consumers are.  She also repeatedly talked about how short of a time frame they had to respond to the order.

Rory McMinn/New Mexico---repeatedly talked about how the west was different, how he is not convinced that there is a benefit to his consumers, how the FERC commissioners needed to come out west to see how different they were.

Carl Wood/California--tried to portray himself and California as representing the west as a whole, and even brought along a statement from the Washington commission echoeing his comments. He delivered the same messages that we've been hearing forever---FERC should have acted sooner on price caps, etc etc.

Glen Thomas/Pennsylvania---he was the first positive commenter and talked about how his state has taken great strides to bring it's energy system into the new century...that by opening it's markets they have had an explosion in green power, they have reduced costs all across the state, etc. He was very supportive of PJM (makes sense because it's in his back yard) and stated that for any RTO to be effective it must have independent governance.

Judy Jones/Ohio---was very parochial in her discussion, but echoed Don Svanda's comments from earlier in the week that one RTO for the midwest was necessary and encouraged the FERC to make a decision and get on with it so that regulatory uncertainty would be removed.

Ed GArvey/Minnesota---he got the gold star for the day.  After very very lengthly comments from about 15 commissioners, he took about 1 minute and said "FERC--just get it done"....in essence telling them to go ahead with what they are doing and move forward.

Other Commissioners who talked were:  Arthur/Connecticut, Hadley/Indiana, Huelsman/Kentucky, Nugent/ Maine  all on the positive side.  Other negative commentors were two guys from DC and Jim Irvin from Arizona who had a rambling conversation that never really pinpointed what he wanted to do.

From the FERC commissioner standpoint, the gold star went to Massey.  After hearing over and over again about how the commisioners didn't feel that they had been included and that FERC had not consulted them enough, he stated that he was going to express his frustration right back, saying the "there has been 7 years of process, and he wants a process that comes to an end....you've been talking for 7 years and never could agree..."

Call me if I can provide any further insights into the individual comments or the tenor of the meeting.  Sue.  #612-339-4599


You're right.  I'll send another message!

Stephanie Panus
Senior Legal Specialist
Enron Wholesale Services
1400 Smith Street, EB3803C
Houston, Texas  77002
ph:  713.345.3249
fax:  713.646.3490
email:  stephanie.panus@enron.com

 -----Original Message-----
From: 	Otto, Randy
Sent:	Tuesday, October 23, 2001 2:47 PM
To:	Panus, Stephanie
Subject:	RE: Vermont Gas Systems, Inc.

Do you mean Enron Canada Corp?

 -----Original Message-----
From: 	Panus, Stephanie
Sent:	Tuesday, October 23, 2001 1:42 PM
To:	Adams, Laurel; Allen, Kimberly; Anderson, Diane; Bell, Jean; Bowen, Bob; Cason, Sharen; Cisneros, Celeste; Fischer, Jason; Garcia, Jorge A. ; Heaney, Gordon; Hundl, Kimberly; Hunter, Larry Joe; Murphy, Melissa Ann; Ornelas, Bianca; Piwetz, Stephanie; Rodriguez, Melissa; Seib, Dianne; Tackett, Scott; Theriot, Kim S.; Brackett, Debbie R.; Bradford, William S.; Brown, Angela Y.; Conwell, Wendy; Curry, Ken; Espinoza, Veronica; Gonzalez, Veronica; Johnson, Rudwell; Landry, Shemeika S.; Lebrocq, Wendi; Mendoza, Nidia; Monterrey, Maribel; Moran, Tom; Ngo, Tracy; North, Carol; Otto, Randy; Radous, Paul; Rajaram, Aparna; Rohauer, Tanya; Sacks, Edward; Sonnonstine, Max; Vanek, Darren; Williams, Jason R (Credit); Campos, Anthony; Crawford, Sharon; Ebow, Amber; Ellstrom, Diane; Gerard, Camille; Hare, Bill D.; Johnson, Cheryl; Lambert, Karen; Landau, Georgi; Lees, Lisa; Moore, Jason; Neuner, Dale; Reeves, Leslie; Richardson, Stacey; Rodriguez, Bernice; Schott, Samuel; Sever, Stephanie; Shivers, Lynn; Sietzema, Linda; Southard, Carrie; Bailey, Susan; Boyd, Samantha; Cook, Mary; Gray, Barbara N.; Heard, Marie; Hendry, Brent; Jones, Tana; Keiser, Holly; Koehler, Anne C.; Leite, Francisco Pinto; Nelson, Cheryl; Sayre, Frank; Shackleton, Sara; Taylor, Mark E (Legal)
Subject:	Vermont Gas Systems, Inc.

We have received an executed First Amendment to Master Agreement by and between Vermont Gas Systems, Inc. and Enron North America Corp., which amends a) certain credit provision for both parties and b) certain other provision of the Master Agreement due to regulatory changes.

Copies will be distributed.

Stephanie Panus


FINANCIALWEB WEEKLY
http://www.financialweb.com
June 1, 2001

Divya Kumar
_______________________________________________________________________
TABLE OF CONTENTS

1. Looking Forward
2. Last Week
3. Jump Reports

-------------------------------------------------------------
Al Toral (+70%): 18 Stocks with Solid Fundamentals to Buy!

Great stocks with strong fundamentals are down now, but
they're starting to rise. That's why Al Toral (+70% 5-year
average gain) says it's time to buy low! He lists 18 with
fast-moving revenues and earnings. Take a FREE 30-day trial:
http://www.netstocks.com/partners.asp?id=566
-----------------------------------------------------------

                   Nasdaq    S&P 500	NYSE	  Dow
Close 05/31/01     2110.49   1255.82    641.67    10911.94
1-week change      -7.54%    -2.86%     -1.68%    -1.89%

1. LOOKING FORWARD
Our Take: Waiting Period

Economic and Market Outlook:

Two months of upswing and hesitation has crept back into the markets.  Analysts are busy downgrading sectors and stocks, stating that prices have risen too much - unsupported by the fundamentals. It is true that  industry problems are too deep rooted to be miraculously solved overnight.  The markets' rise is more likely due to a change in investor sentiment - an attitude of "enough is enough" - rather than an elimination of the problems.

However, it is also true that recovery is on its way. Inventories are  improving and  rate cuts are  spurring consumer spending. The production lines will start rolling again. The only hitch is a lengthy wait for consumer demand to translate into capital spending and a resolution of  overcapacity. The Fed is doing its best: patience is the name of the game. Till then, volatility in the market is inevitable.

Economic data expected next week includes factory orders, construction spending, NAPM services index, wholesale inventories and consumer credit.

Economic Calendar: http://www.123jump.com/econ_cal_live.htm

Earnings Outlook:

There is still a month before earnings season, but warnings season has begun. If the latest warnings are any sample of what has yet to come, investors have a right to be wary.

Name                           Date     Est EPS  Whispers
Comverse Technology (CMVT)     6/4/01    0.42     0.43
Riverstone Networks (RSTN)     6/4/01   -0.05      -
Carrekar Corporation (CANI)    6/5/01    0.12     0.12
Comtech Telecom. (CMTL)        6/5/01    0.17     0.17
Omnivision Technologies (OVTI) 6/6/01    0.00     0.00
BE Aerospace (BEAV)            6/6/01    0.24     0.28
National Semiconductor (NSM)   6/7/01   -0.03    -0.03

http://www.123jump.com/p5t.htm

IPO Outlook:

It is heartening to finally see some activity in the IPO market.  Two months of rally have raised the spirits of aspiring firms, encouraging them to step up to the debut plate.

Company                      Shares (M)   Lead Manager
Alliance Data Systems Corp.  13           Bear Stearns
United Surgical Partners     9            CS First Boston
Torch Offshore Inc.          5            UBS Warburg
Unilab Corp.                 6.69         Salomon Smith Barney

http://www.123jump.com/ipo_calendar.htm

2. LAST WEEK

Economic and Market Update:

Following a lackluster Friday, even the Memorial Day holiday weekend  couldn't revitalize the bulls. Stocks headed steadily downward until Tuesday evening, troubled by earnings warnings, analyst downgrades and acquisition news. Tech stocks were worst hit. Wednesday was, however, a different story - investors flocked back to the stock market to buy anything from tech to Old Economy.

Networking, semiconductor, fiber-optic, software and Internet stocks were hurt most in the tech sector. Other sectors that took a beating were utilities, biotech, retail and finance. Sectors that showed strength for the first half of the week included drug, medical, insurance, chemical and paper stocks.

On the economic front, consumer confidence rose to 115.5 in May from a revised 109.9 in April. Aggressive rate cuts by the Fed and renewed strength in the stock markets have boosted the spirits of consumers. This infused hope that consumer spending may rebound.

Personal income and spending figures showed that U.S. personal spending rose faster than income. Income rose 0.3%, while spending rose 0.4% in April, in synch with analyst estimates. Weekly jobless claims rose yet again - to 419,000 last week from 407,000 the prior week.

Consumer confidence: http://www.123jump.com/story.htm?story_id=11666

Economic Calendar: http://www.123jump.com/econ_cal_live.htm

Company Highlights:

Mergers:
- Talks between Alcatel SA (ALA) and Lucent Technologies (LU) broke down on Wednesday amidst speculation that Lucent would accept a $23.5 billion offer that would not bring any premium to its investors. http://www.123jump.com/story.htm?story_id=11681
- Conoco Inc. (COC), the fifth-biggest U.S. oil company has agreed to buy rival Gulf Canada Resources Ltd. (GOU) for $6.3 billion in cash and assumed debt.
- Tyco International Ltd. (TYC), the second-biggest maker of health-care supplies, will buy C.R. Bard Inc. for about $3.2 billion. http://www.123jump.com/story.htm?story_id=11691
- Investment and asset-management firm Legg Mason Inc. (LM)  agreed to pay $1.38 billion for closely held Private Capital Management L.P., which manages more than $8 billion in assets.
- Medtronic Inc. (MDT) agreed to purchase MiniMed Inc. for $48 a share and closely held Medical Research for $420 million in cash and stock. http://www.123jump.com/story.htm?story_id=11689
- In the biotech arena, genomics specialist Sequenom (SQNM) will acquire Britain's Gemini Genomics for $203 million in stock. http://www.123jump.com/story.htm?story_id=11670

Warnings & workforce reductions:
- Sun Microsystems (SUNW) warned that its earnings for the period ending June 30 would be 2 cents to 4 cents a share, lower than a previously estimated 6 cents.
- RadioShack Corp. (RSH) said it expects to earn 25 cents to 27 cents a share in its second quarter, about 25% below analyst expectations.
- Alcatel warned that its business earnings would slip this year.
- EMC Corp. (EMC) trimmed its workforce by 4%, or 1,100 people.

Downgrades:
- Sun Microsystems, EMC Corp., Altera (ALTR), Xilinx (XLNX), Nortel Networks (NT), JDS Uniphase (JDSU), Sycamore Networks (SCMR), Tellabs (TLAB), Broadcom (BRCM), Texas Instruments (TXN), PMC-Sierra (PMCS), Rambus (RMBS), Citrix Systems (CTXS)
- Morgan Stanley downgraded the networking sector saying that it may be third quarter of 2002 by the time  it turns around.
- Lehman Brothers downgraded the semi sector.

Earnings Update:

Vodafone Group Plc (VOD) posted a full-year loss for the first time.  Although earnings increased by 28% for the year, charges relating to acquisitions, especially that of Mannesmann AG,  depressed its bottom line. The stock plunged 3.7% to 188 pence on the announcement.

Company                         Est EPS    Actual EPS
Pumatech Inc. (PUMA)            -0.11      -0.11
Tech Data Corp. (TECD)           0.50       0.57
Costco Wholesale Corp. (COST)    0.23       0.23
Optio Software Inc. (OPTO)      -0.17      -0.16

Earnings section: http://www.123jump.com/p500.htm
Earnings Calendar: http://www.123jump.com/p5t.htm

IPO Update:

Announced:
Company                   Lead Manager
HPL Technologies (HPLA)   UBS Warburg

Week's IPOs: http://www.123jump.com/pricings.php3?opt=1

3. JUMP REPORTS

123Jump.com provides detailed analysis on markets, companies and industries. Here are some of the latest reports:

Chico's stock has boasted stellar performance - up more than 750% since May 1996, outperforming even Cisco, up just 220% over the same period. Year-to-date it is up 145%!! http://www.123jump.com/story.htm?story_id=11588

Financial news site MarketWatch.com is reducing its workforce and implementing additional cost restructuring plans in the face of a hostile business environment. http://www.123jump.com/story.htm?story_id=11693

ImClone announced that it had reached a milestone in an agreement with Merck KGaA. What's more, the company reached it early, earning $5 million in equity. http://www.123jump.com/story.htm?story_id=11712

It's not godfather or gravity, but it's just as strong a force to be reckoned with. The PC evolution may just be the pace car for the next lap in the networking race. http://www.123jump.com/story.htm?story_id=11708

Disclaimer: The material herein is for information purposes only and should not be deemed an offer or solicitation on our part with respect to the sale or purchase of any securities.

---
You are currently subscribed to financialweb as: shendri@ect.enron.com
To unsubscribe send a blank email to leave-financialweb-797941Q@newsletter.netstocks.com


We Agree

"Eileen Ponton" <kponton@duke-energy.com> on 03/14/2001 12:32:16 PM

To:   David Avila/LSP/ENSERCH/US@TU, Charlie Stone/Texas Utilities@TU, Melissa
      Jones/Texas Utilities@TU, HPL.SCHEDULING@ENRON.COM,
LIZ.BELLAMY@ENRON.COM
cc:
Subject:  NOMS / ACTUAL FLOW FOR 03/13

DATE      NOM       FLOW - MCF           FLOW - MMBTU

3/13      7,500          7,666                7,873

BTU = 1.027


FYI
---------------------- Forwarded by Ernie Simien/CES/ColumbiaGas on 05/10/2001
07:13 AM ---------------------------

Paul Page
05/09/2001 03:26 PM

To: Ernie Simien/CES/ColumbiaGas@ColumbiaGas
cc:
Subject: Re: CES

Follow-up, you can use this note as authority to tell the Enron party it is
acceptable to cancel all CES transport contracts that they did not transfer.
Or any thaty they did transfer as CES is concerned.  Thanks


Credit has no objection to the assignment of our Repo agreement with Goldman
Sachs Canada LP to Goldman Sachs Canada Inc.


Tana:

I have no problems.

Jeff

	Tana Jones
	10/27/2000 09:01 AM

		 To: Alan Aronowitz/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT, Shari Stack/HOU/ECT@ECT,
Harry M Collins/HOU/ECT@ECT, David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Marie Heard/Enron Communications@Enron Communications, Robbi Rossi/Enron
Communications@Enron Communications, John Viverito/Corp/Enron@Enron, Jane
McBride/AP/Enron@Enron, Andrea Calo/SA/Enron@Enron
		 cc:
		 Subject: RUSH APPROVAL-Oklahoma Gas & Electric

Credit called and asked if we could get them a rush approval on the
referenced counterparty.  Let me know if you have anyproblems.  Thanks!


Liz is an MIT graduate and is currently at Exxon and  very interested in a
job at Enron.
I would take her in my group but we are neighbors and I don't want to mix
that with work.  Pat

"Carl & Liz Fortin" <zilrac@email.msn.com> on 03/29/2000 10:32:02 AM
To: <patclynes@enron.com>, <pclynes@enron.com>
cc:

Subject: resume attached

 - 01-00.doc


is this on the calendar?
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 12/11/2000
03:49 PM ---------------------------

	Cindy Olson @ ENRON
	12/11/2000 03:06 PM

Sent by: Kayla Ruiz@ENRON
To: Kenneth Lay/Corp/Enron@ENRON, Jeff Skilling/Corp/Enron@ENRON, Cliff
Baxter/HOU/ECT@ECT, Richard Causey/Corp/Enron@ENRON, Kevin Hannon/Enron
Communications@Enron Communications, Ken Rice/Enron Communications@Enron
Communications, Steven J Kean/NA/Enron@Enron, Greg Whalley/HOU/ECT@ECT, Stan
Horton/Houston/Eott@Eott, Andrew S Fastow/HOU/ECT@ECT, Mark
Frevert/NA/Enron@Enron, Lou L Pai/HOU/EES@EES, Rick Buy/HOU/ECT@ECT, David W
Delainey/HOU/ECT@ECT, Dan Leff/HOU/EES@EES, Louise Kitchen/HOU/ECT@ECT,
Rebecca McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark
Koenig/Corp/Enron@ENRON, Mike McConnell/HOU/ECT@ECT, Marty Sunde/HOU/EES@EES,
John Sherriff/LON/ECT@ECT, Thomas E White/HOU/EES@EES, Mark
Metts/NA/Enron@Enron, Jeffrey McMahon/HOU/ECT@ECT, Charlene
Jackson/Corp/Enron@ENRON, Danny McCarty/ET&S/Enron@Enron, Scott Yeager/Enron
Communications@Enron Communications, Greg Piper/Corp/Enron@Enron, James L
Noles/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janet R Dietrich/HOU/ECT@ECT,
Richard DiMichele/Enron Communications@Enron Communications, Jeffrey A
Shankman/HOU/ECT@ECT, James A Hughes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
John J Lavorato/Corp/Enron@Enron, Joe Gold/LON/ECT@ECT, Joe
Kishkill/SA/Enron@Enron, Shawn
Cumberland/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael Kopper/HOU/ECT@ECT,
Paula Rieker/Corp/Enron@ENRON, Philippe A Bibi/HOU/ECT@ECT, Raymond
Bowen/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Steve Elliott/Enron
Communications@Enron Communications, Dick
Westfahl/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Rob Walls/NA/Enron@Enron, Rod
Hayslett/FGT/Enron@ENRON, Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Wes
Colwell/HOU/ECT@ECT, James Derrick/Corp/Enron@ENRON
cc: David Oxley/HOU/ECT@ECT, Gina Corteselli/Corp/Enron@Enron
Subject: VP/MD Year End PRC Dates


i forgot to tell you that performance reviews are happening today, and i am
hoping for a promotion to associate, so wish me luck.

-e

"K. Bass" <daphneco64@bigplanet.com> on 07/19/2000 12:54:52 PM
Please respond to "K. Bass" <daphneco64@bigplanet.com>
To: Eric Bass <Eric.Bass@enron.com>
cc:
Subject: Re:

Gee, thanks for the info.  I am honored to be on your list. LU-M
----- Original Message -----
From: "Eric Bass" <Eric.Bass@enron.com>
To: <daphneco64@bigplanet.com>; <lwbthemarine@bigplanet.com>;
<Jason.Bass2@COMPAQ.com>; "Brian Hoskins" <Brian.Hoskins@enron.com>;
"Matthew Lenhart" <Matthew.Lenhart@enron.com>; "Timothy Blanchard"
<Timothy.Blanchard@enron.com>; "Lenine Jeganathan"
<Lenine.Jeganathan@enron.com>; <mballases@hotmail.com>; "Michelle D.
Zolkoski" <shelleyzee@mail.utexas.edu>
Sent: Wednesday, July 19, 2000 12:46 PM

>
>
> I have a new cell phone number.  It is 713-628-3104.
>
> EPB
>
>


Jeff:
To explain the P&L of -349,000  :
We executed the trade when you gave the order (the delta anyway), first thing
in the morning.  The market rallied 8 cents from the morning, with the back
rallying about 2.5 cents.  On 904 PV contracts, curve shift was -226,000.
The balance, $123,000,  is almost exactly $.01 bid/mid, which I think is
pretty fair considering the tenor of the deal and that it included price and
vol.  Cal 3 straddles, for instance, are $1.39 / $1.45.

Looking out for you bubbeh:
John


Kate,

Enclosed are the definitions as promised.

Cheers,

Ernest Onukogu
Energy Services
Dow Jones & Company
P.O.Box 300
Princeton, N.J. 08543-0300
609 520-4663
 <<COB-def.doc>>  <<MID-C-def.doc>>  <<PaloVerde-def.doc>>

 - COB-def.doc
 - MID-C-def.doc
 - PaloVerde-def.doc


Here you go!

Thanks,
Robin


Steve:

As you requested, the following is a detailed update on pipeline safety
legislation currently moving through Congress:

Pipeline safety reauthorization legislation

Authorization for pipeline safety programs, as administered by the U.S. Dept.
of Transportation, Office of Pipeline Safety (OPS), is currently set to
expire at the end of FY 2000.    At the beginning of the 106th Congress,
industry was focused on securing a simple, two year re-authorization bill
that basically extends current pipeline safety programs with some modest
increases in funding levels.  In fact, the House Commerce Committee (who
shares jurisdiction over pipeline safety with the Transportation &
Infrastructure Committee) acted early in 1999 to pass a simple, two year
reauthorization bill (H.R. 1378).

Unfortunately, the issue became more complex from that point.   A serious
liquid pipeline accident in Bellingham, Washington that occurred last summer,
killing several children, dramatically changed the debate over pipeline
safety.   Members of the House and Senate from Washington state (backed by
the governor and numerous state and local officials) moved swiftly to
introduce legislation that they feel is designed to address some of the
shortcomings in federal pipeline regulation that they believe may have
allowed the Bellingham incident to occur.

In the Senate, Senator Patty Murray (D-WA) has introduced S. 2004, which is
designed to expand State authority over interstate pipelines in several new
areas, such as inspection and testing, emergency response plans, leak
detection, and operator training and qualification.   The bill also would
authorize a large increase in OPS funding through pipeline user fees, to
increase the amount of grants to the States, allow for hiring of additional
inspectors, and increase R&D for inspection and leak detection technologies.
The current OPS budget is around $36 million (with $30 million from user
fees) -- the Murray bill would authorize $50 million in FY2001, which would
require a sizeable increase in user fees.  Senator Slade Gorton (R-WA) has
recently decided to co-sposnor the Murray bill, and will be actively involved
in trying to gain Republican support for the bill.   On the House side, Rep.
Jack Metcalf (R-WA) has introduced a similar bill, H.R. 3558, which a number
of the Washington representatives have co-sponsored.

Interstate natural gas pipelines have been placed in a very difficult
situation.    The Bellingham incident was a liquid pipeline accident, and
liquids pipelines generally have less stringent regulatory requirements than
natural gas pipelines.   The Washington delegation has highlighted the fact
that 280 deaths and 1500 injuries have occurred over the past 14 years
related to natural gas pipeline incidents, but they fail to distinguish the
fact that almost all of those incidents were on LDC systems (which
ironically, are entirely State regulated).  Only 39 fatalities in that period
were natural-gas related, and the majority of those accidents were caused by
third party damage.  In short, the INGAA crowd is being dragged down by the
poor records of the LDCs and the liquid pipelines.

The calls for more state regulation of interstate pipeline are largely
misguided, based on the fact that the interstate pipelines under federal
regulation have an exemplary safety record.   In addition, OPS is already
working on a "Pipeline Integrity" Rulemaking that would implement a number of
additional measures to prevent accidents on federally-regulated pipelines.

As you mentioned, INGAA has not been doing the best job representing us on
these issues.  They have been working in a group effort with API, AGA, and
the Association of Oil Pipelines (AOPL) to try and deflect the negative
claims of the Murray and Metcalf legislation, but have not been forceful
enough in distinguishing interstate natural gas pipelines' positive record
from the liquids and LDCs.  Thus, they have given the impression that INGAA
companies might be willing to submit to additional regulation that liquids
and LDC are under political pressure to submit to due to Bellingham.  We have
been working with other major INGAA companies (El Paso, in particular) to
make sure that the perspective and positive record of our natural gas
pipelines is heard clearly by the key legislators.

The odds of these measures (S. 2004, H.R. 3558) passing on their own is
fairly slim.   They will get a great deal of attention, however.  The Senate
Commerce Committee held a field hearing in Bellingham, Washington yesterday,
at which Senators Gorton and Murray testified along with OPS and the families
of Bellingham victims -- the press coverage was not good (i.e., USA Today
cover story "When Pipelines Are Time Bombs").   These bills (or portions of
them) will likely be offered and considered as amendments to Pipeline Safety
Reauthorization legislation as it comes before the House Transportation &
Infrastructure and Senate Commerce Committee later this year.

The increased controversy caused by these bills will likely doom efforts to
pass a pipeline safety reauthorization bill this year.   The leadership of
the House and Senate Committees will not likely want to face a bitter debate
between safety advocates, OPS, States, and industry in their committees in
this tough election year.   While this is probably a good sign, there is an
increased risk that industry may face some large hurdles in the
appropriations process.

Appropriations Legislation

While Members of Congress push for their stand alone bills and/or amendments
to reauthorization bills, the greater danger is that some of these issues
will be dealt with in an appropriations context.    In particular, the fact
that Senator Slade Gorton is now actively engaged in pushing for extensive
pipeline safety reforms is troubling -- he is a key member of the Senate
Appropriations Committee, is close to Republican leadership, and has a tough
re-election fight coming up.   Senator Murray is also on Senate
Appropriations.  Both are on the Transportation Appropriations Subcommittee,
which funds OPS.

It is quite likely that the Senators will make a push to get increases in the
OPS budget for FY 2001 that would enable the kinds of reforms contemplated by
their stand-alone legislation (more state funding, more inspectors, more
R&D).  Much of this increase would be funded through increases in user fees.
INGAA indicates that it expects we could be facing increases in the range of
10-15% from FY2000.   There is also the possibility that an attempt will be
made to add legislative riders to the OPS appropriations -- such as requiring
OPS to mandate inspections, increase operator qualifications, or allow
increased state authority.   I would predict that legislative riders can be
prevented, but it will be very difficult to avoid some kind of increases
(beyond mere adjustments for inflation) in the OPS budget and user fees.

The reauthorization will indeed receive attention in 2000, but our advocacy
efforts will clearly need to be focused on the appropriations process, in
order to minimize the impact on interstate pipeline user fees and prevent
other harmful mandates.

We will continue to work with key members of the authorizing and
appropriations committees to ensure that the interstate natural gas
perspective is clearly heard and, if possible, we avoid being dragged down in
attempts to impose more strict regulation on liquids and LDCs.

Please let me know if you have questions or require additional information.
Thank you.


Amazon.com logo	your account

	Thank  you, Susan Scott, for ordering from Amazon.com.

	If  you ordered several items to be delivered to the same  address, we may
send them to you in separate boxes to  give you the speediest service. Rest
assured: This will  not affect your shipping charges.

	Thanks  for shopping with us!

	Amazon.com  Customer Service

	Purchasing Information:

	Your  purchase reads as follows:

	E-mail  Address:??sscott3@enron.com

	  Billing Address: ??
	Susan Scott
	815 Cortlandt St.
	Houston, TX 77007
	USA
	713-864-4960

	  Subtotal:
	  ?
	  $    30.69
	  Shipping & Handling:?????????
	  ?
	  $    12.96

	?
	------
	Total Before Tax:
	?
	$    43.65
	Tax:
	?
	$     0.00

	?
	------
	Purchase Total:
	?
	$    43.65

	?  Order Summary:

	Order #1: (Order #107-3191604-9762947)

	Susan Scott
	Enron
	1400 Smith St., Room 4788
	Houston, TX  77002
	USA

	Shipping method: Second Day Air
	Shipping preference: Ship when all items are available.

	[IMAGE]
	1
	 "Shopgirl : A Novella"
	Steve Martin; Hardcover; @ $10.77 each
	Usually available in 24 hours

	[IMAGE]
	1
	 "Don't Sweat the Small Stuff in Love"
	Richard, Ph.D. Carlson, Kristine Carlson; Paperback; @ $9.56 each
	Usually available in 24 hours

	[IMAGE]
	1
	 "A Month in the Country (New York Review Books Classics)"
	J. L. Carr, Michael Holroyd(Introduction); Paperback; @ $10.36 each
	Usually available in 2-3 days

	Manage  Your Account:

	Manage all your orders online. Access Your Account, and you can:

	Track the status of this order
	Combine open orders to save on shipping
	Change the payment option for this order
	Change the shipping option or address
	Cancel unshipped items from this order
	Edit your gift-wrap or gift message selections

	If you still need to get in touch with us about your order, send an e-mail
message to orders@amazon.com (or just reply to this message).

	Thanks again for shopping at Amazon.com!

	Amazon.com
	Earth's Biggest Selection

	Your Recommendations:

	Ideas for Your Next Visit

	 [IMAGE] Bump and Run
	by Mike Lupica
	Our Price: $19.96

	 [IMAGE]Don't Sweat the Small Stuff at Work
	by Richard Carlson(Illustrator)
	Our Price: $9.56

	[IMAGE] See All Your Recommendations
	unsubscribe icon?Prefer not to receive HTML Mail? Click here

	Manage Your Account:

	 View Your Orders

	 Edit Shipping Options

	Cancel Unshipped Orders

	 Go to Your Account

	?

	Refer a friend banner
	and receive a $5.00 gift certificate!
	Click here for details.

	?

?
?


That looks good, but I need an index based product for July for the HPL/HSX
Pool (not the east pool)

Thanks,

Eric

Dale Neuner   06/06/2000 09:40 AM

To: Eric Bass/HOU/ECT@ECT
cc:
Subject: Re: Weekday Products

Take a look at what's in DRAFT and if it looks okay I'll activate the Product.

Lot's of manual intervention..............................

Dale

	Enron Capital & Trade Resources Corp.

	From:  Eric Bass                           06/06/2000 08:56 AM

To: Dale Neuner/HOU/ECT@ECT
cc: Melba Lozano/HOU/ECT@ECT
Subject: Weekday Products

I am trying to create the WkD for other areas beside HPL/HSX E but keep
getting an error msg for length.   Is there a way to truncate these products
so that we can trade them on eol?

Thanks,

Eric


Dear U2 Fan,

As promised there are new developments coming onto the site regularly at
present.

Just up we have an exclusive U2.COM animated screensaver, featuring clips
from tracks off All That You Can't Leave Behind.

We've also just posted The Oracle, which promises answers to everything you
ever needed to know about U2. Sort of! Just key in your question and you'll
be surprised at the answer you get. It's Surreal Thing!

We're still running our competition to win a signed set of every U2 album on
vinyl and there's also a few days left to vote for your favourite track from
BOY - before we open the voting on the favourite track on another U2 album.

In January we'll be posting the first information on the new U2 tour - and
we'll e-mail you immediately the information is public.

Best wishes
u2.com

www.U2.com is powered by WorldOnline.com


buffalo (BUF-uh-lo) noun, plural buffalo or buffaloes or buffalos

   1. Any of several oxlike Old World mammals of the family Bovidae, such
      as the water buffalo and Cape buffalo. The North American bison,
      Bison bison.

   2. The buffalo fish.

verb tr.

   1. To intimidate, as by a display of confidence or authority.

   2. To deceive; hoodwink.

   3. To confuse; bewilder.

[Italian bufalo, or Portuguese, or Spanish bufalo, from Late Latin bufalus,
from Latin bubalus, from Greek boubalos.]

   "Moe Howard (Paul Ben-Victor), the supposed brains of the act, is easily
   buffaloed by studio bosses."
   Terry Kelleher, Picks & Pans: Tube, People, Apr 24, 2000.

This week's theme: animal words that are used figuratively.

............................................................................
Heaven is under our feet as well as over our heads. -Henry David Thoreau,
naturalist and author (1817-1862)

Q: Some time ago you featured a quote about foo in AWAD. Could you resend it?
A: You may search the archives at http://wordsmith.org/awad/search.html
   or browse them at http://wordsmith.org/awad/archives.html All the
   words and quotes since the beginning of AWAD are available there.

Pronunciation:
http://wordsmith.org/words/buffalo.wav
http://wordsmith.org/words/buffalo.ram


Thanks.Glad to hear it.


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

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

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

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

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

Subject: Stamp Tax Dispute

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

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

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

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

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


Mark:  I just received a copy of my "IOU/municipal" chart from last year with
an undated note from you about our omnibus format/IOU's.  I would like to
speak with you especially since I'm speaking with credit about municipals on
Wednesday.

As a practical matter, I'm not sure whether we even transact with utilities
on the omnibus.  Perhaps Tana can answer the question as to online trading
and the confirmation desk as to offline trading.  Secondly, I'm not sure how
often the Additional Event of Default is successfully negotiated into the
ISDA Agreement.  The latter point might be worth an email to the lawyers.

Do you have a few minutes today?

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


Sorry about this.  Here is the right addresses for AES

AES Pacific, Inc.
100 Pine Street, Suite 3300
San Francisco, CA 94111


I think this is the one.
----- Forwarded by Dan J Hyvl/HOU/ECT on 12/22/2000 02:45 PM -----

	Craig Breslau
	12/20/2000 03:05 PM

		 To: Dan J Hyvl/HOU/ECT@ECT
		 cc:
		 Subject: Ormet Letter Agreement

---------------------- Forwarded by Craig Breslau/HOU/ECT on 12/20/2000 03:04
PM ---------------------------

"Kilby, Daniel" <KilbyD@kochind.com> on 12/15/2000 08:45:45 AM
To: "'craig.breslau@enron.com'" <craig.breslau@enron.com>
cc:
Subject: Ormet Letter Agreement

Craig, please find attached a rough draft of the letter agreement for the
Ormet Deal. We need get rolling on this so let me know your thoughts on this
and the service request (sent earlier this week) as soon as you can.

Thanks.

 <<Enron-OrmetLetterAgreement.doc>>

 - Enron-OrmetLetterAgreement.doc


The Management Committee is invited to join the Enron Corp. Board of Directors on Tuesday, October 9th, for it's open Board session and lunch.  Among other agenda items, management briefings will be made for both Enron Americas and Enron Energy Services.

Please come to EB5001 at 8:45 a.m. on Oct. 9.   A seated lunch will be held in the 50M dining room following the meeting.

Your participation in important.  Please RSVP to Kelly Johnson at ext. 36485 or via email at kelly.johnson@enron.com by Noon on October 2, 2001.

Thanks.