below is an article on California for your review - Eric

++++++++++++++++++++++

----- Forwarded by Eric Benson/NA/Enron on 01/26/2001 04:58 PM -----

	webmaster@cera.com
	01/26/2001 02:48 PM

		 To: insights@cera.com
		 cc:
		 Subject: Western Energy Markets Stuggle Along - CERA Monthly Briefing

Title: Western Energy Markets Stuggle Along
URL: http://www20.cera.com/eprofile?u=35&m=2220

Western Market Overview

As the California power crisis remains unresolved and blackouts in California
have gone from threat to reality, the western gas and power markets grow
increasingly distorted by the perceived risk of selling energy to California,s
two largest utilities. Normal power plant operations and power pricing
dynamics
have been supplanted with federal mandates to deliver power to California, and
power basis differentials are being influenced by credit risk. Regional
hydroelectric supplies have been drawn down at abnormally rapid rates to meet
current demand such that, in the absence of increased precipitation throughout
the West, suppliers will be unable to depend heavily on hydroelectric output
in
February and later in the year. Gas suppliers are growing increasingly wary
about shouldering the increased risk.

Natural gas and power prices have declined from December,s record levels,
driven in part by January-to-date weather that has been warmer than normal.
Although Topock gas prices remain above the $10 per million British thermal
units (MMBtu) level, basis differentials to the Henry Hub have declined
dramatically from a premium over Henry Hub prices of $15 per MMBtu in December
to an average of $5.00 per MMBtu in January. Demand levels will likely hold
near January levels during February, as the already intense pull of gas for
power generation continues. Because storage levels in California remain low,
the California citygates will be exposed to temporary price spikes during
spells of cold weather. Differentials for February are expected to average
$0.65 to $0.75 per MMBtu, in the Rocky Mountains and San Juan producing basins
during February, $0.65 per MMBtu at AECO, and $3.00 per MMBtu at Topock.

Power prices in January have followed both the decline in gas prices and the
shift to warmer weather. However, there is growing unease in the power markets
with the dry precipitation season to date. A significantly lower-than-average
hydroelectric season would permeate through the power markets for all of 2001,
placing gas-fired generation on the margin virtually the entire year. CERA has
incorporated a lower-that-average view of hydroelectric generation into its
gas
and power analyses. February on-peak power prices are expected to average
$140)
$166 per megawatt-hour (MWh) in February, depending on location, but temporary
price spikes are likely as California reserves reach critically low levels and
the independent system operator (ISO) struggles to secure enough power to keep
the lights on. Off-peak power prices are also expected to remaining strong,
averaging $94)$135 per MWh in February, depending on location.

Regional Power Market Drivers: Low Precipitation Threatens Already Difficult
2001

Disappointing levels of precipitation have raised the specter that the 2001
power markets will be plagued by a below-average hydroelectric year.
Season-to-
date precipitation is currently 55 percent of normal in the upper Columbia
River Basin in British Columbia, 50 to 75 percent of normal in the US Columbia
River Basin, and 50 percent of normal for California. January hydroelectric
output westwide has been higher than normal, as operators have run facilities
hard to supply energy during December and January energy shortages. In coming
months, however, output will be down roughly 2,275 average megawatts (aMW)
compared with the first quarter of 2000, owing in part to this early drawdown.
CERA has incorporated an outlook for hydroelectric production in 2001 that is
approximately 88 percent of CERA,s estimate for an average western hydro year
(see Table 1).

Concerns over low precipitation levels and the high drawdown rate of Pacific
Northwest hydroelectric facilities leave the Pacific Northwest particularly
vulnerable to higher prices in February, as winter weather)driven demand
spikes
challenge regional supplies and California demand prevents a significant level
of exports from California to the Pacific Northwest.

Even under normal hydroelectric conditions, demand growth in early 2001 was
expected to push the utilization rates of US Western Systems Coordinating
Council (WSCC) gas-fired generation facilities to 50 percent, well above the
39
percent average level of the first quarter  2000. (see Table 2) The combined
effects of the early drawdown of hydroelectric facilities, a disappointing
precipitation season, and demand growth will push these utilization rates to
nearly 60 percent in the first quarter  2001. This will cause markets to clear
at or above the production cost of gas-fired generation even more often than
in
2000.

Pacific Northwest

Hydroelectric generators in the Pacific Northwest have drawn down the region,s
hydroelectric reservoirs to well below average historical levels. Grand
Coulee,
the largest hydroelectric facility in the West, with over 6,000 megawatts (MW)
of capacity, was near 75 percent of the historical average as of early January
and reflects the general condition of the major reservoirs in the region. In
the event that precipitation remains low, the drawdown of these facilities in
early winter to meet load spikes in the Pacific Northwest and California has
hurt the region,s ability to supply power throughout 2001 and will maintain
upward pressure on power prices.

Above-average temperatures in early January have helped to mask some of the
underlying strong fundamentals in the Pacific Northwest. Strong demand growth
for the first quarter near 5 percent is expected, however, owing to economic
growth and a return to normal weather from last year,s mild winter (see Table
3). Low hydroelectric availability and persistent gas prices in the $6 to $8
per MMBtu range at Sumas have the potential during the remainder of the winter
to cause price spikes well above the $226 per MWh on-peak levels so far in
January, although average prices should be much lower. December,s average of
$570 per MWh demonstrated this potential clearly (see Table 4). Along with
demand growth near 5.5 percent year-over-year in February, cold snaps will
again bring price run-ups, particularly in the event that persistent low
precipitation in the region reduces the ability of hydroelectric operators to
draw down facilities past already-low levels.

CERA expects Mid-Columbia prices to stay near January levels in February for a
monthly average of $141 per MWh on peak and $135 per MWh off peak. Continued
drops in hydroelectric reservoirs and weather-related events would push prices
periodically to December,s high levels.

California

Although California has had a December and early January that were nearly 10
percent warmer than usual, January prices have reflected 5 percent demand
growth over 2000 owing to economic and other growth factors that have pushed
gas-fired generators onto the margin more often, with higher gas prices at
Topock by $7 MMBtu, low hydroelectric availability westwide, and the degraded
condition of the California power market. Northern California snowpacks have
been higher than in other parts of the state but hover near 55 percent of
normal in spite of recent storms. Reservoir levels for the state are between
50
and 100 percent of average, depending on location, but are in the 70 to 80
percent-of-average range for reservoirs affecting the state,s largest
hydroelectric facilities.

As California,s largest investor-owned utilities (IOUs) continue to struggle
to
obtain gas and power supplies in the face of financial insolvency, California
power prices have reflected a premium associated with the higher risk of
supplying the state. January differentials with western prices have grown as
high as $40 per MWh, owing in part to temporary supply shortages as nuclear
and
other thermal plant outages at times have totaled over 15,000 MW. Northern
California,s import constraints make it particularly susceptible to these
temporary shortages, suggesting that continued low hydroelectric supplies will
increase the risk of repeated localized blackouts in the event of extensive
future outages.

The agreements reached through negotiations between suppliers, the IOUs, and
state and federal officials in recent weeks will calm some of the price-
inflating uncertainty in the market, but California will be the premium market
through the first quarter of 2001 and most of the coming year owing to
persistent supply tightness. For February in California CERA expects sustained
price strength of $152 per MWh on peak and $126 per MWh off peak.

Rockies and the Southwest

The Southwest and Rockies regions had warm weather in December and the first
half of January but have not been completely insulated from the price run-ups
in other parts of the West. Demand growth in the region is expected to be near
3 percent for the first quarter, with February experiencing moderate 2 percent
growth, suggesting that most of the price strength will be attributed to
interconnections with the hydro-deprived California and Pacific Northwest
markets. Capacity margins in the Southwest are at their highest levels during
the winter and*as an isolated subregion*would exceed 15 percent at this time.

Compared with California prices, prices in the Southwest and Rockies regions
will reflect the relatively low cost of gas supply and the prevalence of coal-
fired generation (16,000 MW, or 48 percent of the installed base in the
region). CERA,s outlook for on-peak average price for February is $150 per
MWh.
Off-peak prices in the Rockies will drop nearly $25 per MWh below the
Southwest, reflecting the ability of California markets to exert more
influence
on the Southwest than on the Rockies.

Western Gas Markets

Although gas prices at Topock have come down from lofty December levels,
winter
is far from over in the West; indeed, the pressure is intensifying. The credit
crisis precipitated by the power market crisis is spilling over into gas
markets; storage levels within California are again at critically low levels.
The mild weather during December and early January allowed some improvement in
the positions, but when PG&E,s suppliers began refusing to serve because of
the
utility,s credit problems, the utility responded by drawing heavily on storage
inventories, and a spell of wintry weather compounded increased demand in the
face of limited supplies. As a result, overall inventory levels are again
falling quickly.

CERA estimates that inventory levels in California are approximately 50
billion
cubic feet (Bcf). A continued heavy draw on gas for power generation will keep
demand levels high (see Table 5), and the inability to manage demand spikes by
drawing on storage inventories leaves the market exposed to price spikes.
Normal weather during February would probably allow prices at both Topock and
Malin to settle back into the $0.50 to $3.00 premium to the Henry Hub, but
extreme weather could push basis differentials as high as $6.00 per MMBtu.

In the Rockies and San Juan Basins, differentials will depend critically on
the
weather. Because supply levels and storage inventories in the Rockies are
healthy, the impact of swings in regional demand can cause wide swings in
differentials. CERA expects the swings to continue through February, with
differentials generally maintaining wider discounts to the Henry Hub by the
end
of the month.

As high absolute gas prices continue, more and more effects of these prices
will emerge. CERA estimates that 200 MMcf per day of base industrial demand in
the West*particularly in California*has switched off of gas. Some end users
have turned to diesel fuel for industrial boilers; some plants have simply
curtailed operations in response to the higher prices.

On the power side, plants within California are extremely limited in their
ability to burn alternative fuels because of emissions credits. However,
plants
outside of California do have some backup capability. Arizona Public Service
has purchased 400,000 barrels of 1% sulfur residual fuel oil to burn as an
alternative to gas. Given the intense pressure on gas, oil will absorb some of
growth in power loads.

California

In November an early strong draw on storage in California raised questions
about winter deliverability within the state. A combination of low storage
inventories, high gas demand for power generation, and continued high
utilization rates on import pipelines into the state will keep pressure on
California prices through February (see Table 6). Despite efforts by end users
to limit gas burns in the state in the face of extremely high gas prices, CERA
expects demand during January in the state is up by 650 MMcf per day on a
year-
over-year basis. In February, loads should start to decline as residential and
commercial demand declines through the month. However, power loads will remain
strong and actually climb from January into February as hydroelectric
generation falls.

This demand support, continued strong capacity utilization rates in import
pipelines into California, and critically low storage inventories will keep
intense pressure on gas prices within the state through February. During
periods of high demand, prices will likely reach back up into the $15.00 to
$20.00 per MMBtu range. Eventually, as heating loads settle and storage draws
slow toward the end of February, differentials should ease back into the $1.00
to $3.00 per MMBtu range. On balance, CERA expects a Topock differential for
February of $3.00 per MMBtu (see Table 7).

Pacific Northwest

Three factors have combined to strengthen Malin prices over the past week, and
these forces should extend price strength at Malin into February. First, the
return of colder winter weather after moderate temperatures during late
December and early January is increasing heating loads and power loads.
Second,
lower-than-normal hydroelectric generation is increasing the draw on gas for
power generation during a season when the pull is normally low. Third, the
California power shortage is drawing on all regional supplies and supporting
the demand for gas for power generation.

Pacific Northwest demand is expected to hold flat relative to January levels
during February with slight increases in gas demand for power generation
offsetting declines in residential and commercial demand. The sustained high
demand levels*despite relatively healthy Northwest storage inventory levels*
will keep Malin prices well above Henry Hub prices. CERA expects a Malin to
Henry Hub differential of $1.00 per MMBtu during February.

A drop-off in demand of 200 MMcf per day is expected in March, as steep
declines in heating loads offset continued increases in gas demand for power
generation. However, prices at Malin will likely remain unusually strong this
spring. Part of the shortfall in hydroelectric generation continues to be
made
up by draining reservoirs. That early drawdown will limit the availability of
hydroelectric generation through the spring and early summer months. Both low
hydroelectric generation and a challenging storage refill season in Northern
California should sustain the Malin premium to the Henry Hub even into the
spring.

Rocky Mountains

The volatility in Rocky Mountain differentials continues. Differentials
continue to depend primarily on local heating loads; cooler weather supports
loads and prices within the region, but periods of warm weather drive steep
declines in Rocky Mountain prices relative to prices at the Henry Hub. During
February, demand should drop off in the region. Although declines in heating
loads in neighboring western regions will be offset by increases in gas demand
for power generation, the Rockies remain primarily coal based. As a result,
the
lower expected hydroelectric output will do little to support loads within the
region. Increases in supply*CERA expects supply increases of 300 MMcf per day
during 2001 relative to 2000*will overwhelm available pipeline capacity out of
the region.

Demand during February in the Rockies is expected to remain flat at 2.9 Bcf
per
day; however, within the month demand loads will drop substantially. This will
put pressure on differentials toward the end of the month, and CERA expects
average basis differentials to the Henry Hub during February of $0.75 per
MMBtu. That widening trend should continue during March, with differentials to
the Henry Hub eventually reaching $2.00 per MMBtu this summer.

Southwest

Prices in the San Juan Basin have been following Rocky Mountain prices up and
down with regional demand loads. That dynamic will likely continue through
February. CERA expects relatively flat demand during February within the
Southwest. As in the West as a whole, a significant drop-off is expected
during
March as residential and commercial heating demand wanes. For February,
continued strong demand loads within the Rockies and Southwest will support
prices in the San Juan, barring unusually warm weather. CERA expects a
differential to the Henry Hub of $0.65 per MMBtu.

As residential and commercial loads decline sharply during late February and
March, prices in the San Juan will reflect ample supply. CERA expects declines
in San Juan production during 2001, but declines will be limited by the
strongest drilling activity for conventional supplies in the basin in a
decade.
However, pressure on Rocky Mountain supplies will mean increased exports from
the north into the San Juan, and those increased exports will more than offset
the declines in local production. Pipeline capacity constraints out of the San
Juan will again mean wide San Juan-to-Henry Hub differentials, with pressure
on
prices developing during the spring and intensifying through the summer
months.

Western Canada: Increasing Supply

AECO differentials to the Henry Hub have ranged between $0.60 per MMBtu and
over $1.00 per MMBtu. Given strong demand in the United States, export
pipelines have been running near capacity all winter. Even the 1.3 Bcf per day
Alliance pipeline has been running full; through the end of the winter,
continued strong US demand should keep export pipeline flows near capacity.
Given these flow levels, CERA expects differentials to remain near the $0.60
to
$1.00 per MMBtu level, reflecting the cost of transport on TransCanada, the
only available export capacity out of Alberta. For February, CERA expects a
differential between AECO and the Henry Hub of $0.65 per MMBtu.

Storage inventories in western Canada are running below historical average
levels, but the refill season should be manageable; inventories are nowhere
near as low as US inventory levels. Inventories in the West are expected to
fall slightly below historical average levels by the end of withdrawal season,
and exports should decline relative to first quarter levels as injection
season
begins in the spring. CERA expects differentials to Henry Hub prices to narrow
sometime in the late spring as the focus in Alberta turns from filling US
winter demand to refilling Canadian storage.

On the supply side, production has turned the corner in western Canada, and
year-over-year increases in supply of nearly 300 MMcf per day are now evident.
After flat production levels for 2000 relative to 1999, increases for the year
2001 should reach 350 MMcf per day. Given strong expected demand from
California and the West Coast, CERA expects no declines in year-over-year
flows
into the West on PGE GT NW. Overall flows should reach 2.4 Bcf per day for
2001, an increase of 85 MMcf per day from 2000 levels.

**end**

Follow above URL for full report.

*********************************************************
Come Shoot the Rapids with us at CERAWeek2001, "Shooting the Rapids:
Strategies and Risks for the Energy Future" in Houston, February 12-16, 2001!
For more information and to register, please visit
http://www20.cera.com/ceraweek/
*********************************************************

E-mail Category: Monthly Briefing
CERA Knowledge Area(s): Western Energy,

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Copyright 2000. Cambridge Energy Research Associates


John,

I wouldn't ordinarily send these past you but are you OK with below for
Calgers guy in San Fran? The numbers seem ok given it is equity rather than
cash.

David

Amy FitzPatrick
01/22/2001 05:26 PM
To: David Oxley/HOU/ECT@ECT
cc:
Subject: Re: Employment Agreement - Samuel Wehn

He is a technical Senior Director (promoted from Director year-end, ranked
Superior) working in the San Francisco office - his main responsibility is a
power plant developer.

Let me know if you need more information!

Thanks and have a great day.
Amy

David Oxley
01/22/2001 02:47 PM
To: Amy FitzPatrick/PDX/ECT@ECT
cc:
Subject: Re: Employment Agreement - Samuel Wehn

What does he do?

Amy FitzPatrick
01/22/2001 04:18 PM
To: David Oxley/HOU/ECT@ECT
cc:
Subject: Employment Agreement - Samuel Wehn

David -

Can you please advise the status of this agreement?

Thanks!
Amy
---------------------- Forwarded by Amy FitzPatrick/PDX/ECT on 01/22/2001
04:30 PM ---------------------------

Amy FitzPatrick
01/11/2001 03:23 PM
To: David Oxley/HOU/ECT@ECT
cc:
Subject: Employment Agreement - Samuel Wehn

David -

Please see revised - Chris wanted to add $50,000 equity on 1 year anniversary.

Thanks!

Amy

---------------------- Forwarded by Amy FitzPatrick/PDX/ECT on 01/11/2001
05:34 PM ---------------------------

Amy FitzPatrick
01/10/2001 09:07 AM
To: David Oxley/HOU/ECT@ECT
cc:
Subject: Employment Agreement - Samuel Wehn

David -

Chris would like to offer Sam Wehn an employment agreement.

Can you please review the attached and let me know if you approve?  Also,
does Lavo approve employment agreements for Chris or does Delainey?

Thanks!
Amy


As requested attached is an update of the status of the addressing of legal
work for EnronOnline's introduction into Australia. In essence we are
progressing satisfactorily. The major issues of regulatory compliance and
contract formation have been settled. There are some issues that are still
being worked that relate to the detail of the system. Issues such as
admissibility of EnronOnline records as evidence.

David Minns
01/17/2000 06:43 PM
To: David Forster/LON/ECT@ECT
cc: Louise Kitchen/LON/ECT@ECT, Paul
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mark Taylor@ECT, Alan
Aronowitz@ECT

Subject: Re: Australian Power

David progresing well on legal issues. I have held off sending you an update
pending finalisation of a piece of a major piece of work concerning the
formation of contracts. I  will forward to you a full update tomorrow. As far
as the product descriptions are concerned we have largely finalised the form
for a swap.   We need to clarify some terminology before it is finalised.
This we plan to do tomorrow.

Attached are the GTCs, Password Agreement and ETA I prepared last  year.
These are currently with outside counsel as part of the brief to advise.

David Forster@ECT
01/15/2000 05:05 AM
To: David Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Louise Kitchen/LON/ECT@ECT, Paul
Smith/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Australian Power

David,

I would appreciate it if you could forward your updated to-do list to myself
and Louise Kitchen at your earliest opportunity. We would like to make some
decisions regarding the potential launch dates of Austrlian Power, to prepare
for an Investor Relations presentation next week. The legal timetable is
obviously an important element.

At this point, we have loaded draft descriptions into the system and you can
transact on Australian Power in the test database. These draft descriptions
will obviously need to be updated based on input from you and Mark Taylor,
once the GTC is finalised.

After legal, the only remaining elements to be completed prior to Australian
launch are trader training, bridging to EnPower and customer marketing
materials (which are currently in the Australian office).

EnPower bridging is expected to be very simple. Torrey Moorer is working on
this on behalf of the Houston PCG and they will be finalising the bridging
over the next week or so, using the draft products.

Thanks,

Dave


Tom has informed me that we will not be working on Monday, January 15th for
Martin Luther King Day.  It is both an Enron Holiday and a NYMEX Holiday, so
have a nice, 3-day weekend!

Laura


Please don't.  I enjoy the laughter!  I was just jealous.

From: Stuart Zisman@ECT on 03/09/2001 03:33 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject:

Sorry.  I'll try to keep myself and my clients under better control on a
going forward basis.

Stuart


Not good news from Canada.  Power lines are full when appropriate.  Just
Powerex's power.

Jim
---------------------- Forwarded by James D Steffes/NA/Enron on 04/12/2001
09:59 PM ---------------------------
From: Robert Hemstock@ECT on 04/12/2001 06:24 PM MDT
To: James D Steffes/NA/Enron@ENRON
cc: Ray Alvarez/NA/Enron@ENRON

Subject: Re: PROOF OF ALBERTA POWER NOT FLOWING TO CALIFORNIA

I spoke to Ray Alvarez about this today.  British Columbia Hydro has a FERC
888 Wholesale Transmission Tariff in place and the actual available
transmission capacity is primarily owned by B.C. Hydro's marketing affiliate,
Powerex, with some small amounts of interruptible capacity owned off and on
by other market participants, including Enron.

Although Enron Canada would like to export more power to the US as we can
supply it from our PPA or even buy it in Alberta's Power Pool, there is
rarely any available transmission capacity as what is available was fully
subscribed for (mainly by Powerex) and is used.  I just confirmed with our
trader that none of BC Hydro's transmission export capacity has gone unused
when Alberta or BC had excess generation available for export and the
economics of selling from Alberta or BC into Mid-C were favorable.

Regards,

Rob

James D Steffes@ENRON
04/12/2001 05:18 PM
To: Robert Hemstock/CAL/ECT@ECT
cc:
Subject: PROOF OF ALBERTA POWER NOT FLOWING TO CALIFORNIA

Rob -

Is there any information that would highlight that Alberta had excess
generation that couldn't get into the California market this year or later?

I need this ASAP.

Jim


---------------------- Forwarded by Darron C Giron/HOU/ECT on 01/25/2001
12:23 PM ---------------------------

"KRISTI GIRON" <KRISTI.GIRON@cfisd.net> on 01/24/2001 11:34:18 AM
To: <Darron.C.Giron@enron.com>, <Dgiron1@pdq.net>
cc:
Subject: Fwd: FW: Fwd[3]:FW: For the Sportsman in all of us...

Date: Tue, 16 Jan 2001 09:45:50 -0600
From: "TERESA CARDAMONE" <TERESA.CARDAMONE@cfisd.net>
To: "KRISTI GIRON" <KLG10425.CF005.DOM-HIG@cfisd.net>
Subject: Fwd: FW: Fwd[3]:FW: For the Sportsman in all of us...
Mime-Version: 1.0
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Each year, we all dress up like ancient Indian warriors and perform an
elaborate ritual in which we sacrifice a chosen damsel to Vulcan, god of fire
and metalworking.  Congratulations!  (sorry about your luck, Eric)

	Shanna Husser@EES
	11/13/00 04:08 PM

		 To: Hector Campos/HOU/ECT@ECT
		 cc: Eric Bass/HOU/ECT@ECT, Brian Hoskins/Enron Communications@Enron
Communications, Lenine Jeganathan/HOU/ECT@ECT
		 Subject: Re: Thanksgiving dinner

I didn't realize that there was a "tradition".  Remember- I wasn't in y'alls
little picture around this time last year.  What does the tradition consist
of?

   Hector Campos @ ECT                11/13/2000 03:57 PM

To: Brian Hoskins/Enron Communications@ENRON COMMUNICATIONS@ENRON
cc: Shanna Husser/HOU/EES@EES, Eric Bass/HOU/ECT@ECT, Lenine
Jeganathan/HOU/ECT@ECT
Subject: Re: Thanksgiving dinner

I can cook.

Brian Hoskins@ENRON COMMUNICATIONS
11/13/2000 02:41 PM
To: Eric Bass/HOU/ECT@ECT, Shanna Husser/HOU/EES@EES, Hector
Campos/HOU/ECT@ECT, Lenine Jeganathan/HOU/ECT@ECT
cc:
Subject: Thanksgiving dinner

Do you guys want to keep the tradition and organize a Thanksgiving dinner
this Sunday?

Brian T. Hoskins
Enron Broadband Services
713-853-0380 (office)
713-412-3667 (mobile)
713-646-5745 (fax)
Brian_Hoskins@enron.net


Please be aware that there is an email circulating the Enron messaging environment !!!

The infected email has the following characteristics :
Subject :	Hi
Body :		Hi, I found a cool site! <web link> It's really cool!

An alternative version of the infected email also have an Excel spreadsheet attachment.

If you receive this email, DELETE it immediately. DO NOT CLICK ON THE WEB LINK. DO NOT LAUNCH THE EXCEL ATTACHMENT!

Please note that opening the email automatically via the "preview pane" does NOT launch the virus.

The Enron global messaging service has taken the necessary steps to ensure all internet email sent to your Enron internet address is virus free. But there are ways that you can ensure viruses do not make their way into our environment  :

Always ensure you do not launch attachments or web links received from people you do not know.

Always ensure that you do not access/launch/download any attachments from external (web-based) email service providers while you are using the Enron network.

Detection + Prevention = Protection!

Thank you.


Start Date: 1/23/02; HourAhead hour: 16;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002012316.txt


what do you think?
-----Original Message-----
From: K. Bass [mailto:daphneco64@alltel.net]
Sent: Saturday, November 10, 2001 3:44 PM
To: Bass, Eric
Subject: Thomasville Furniture Ind. Millbrook Rectangular Cocktail Table

pretty table

  <http://www3.thomasville.com/Products/product.asp?ItemID=560>


Don't tell Rick I sent you this.

 - Democratic Seal.jpg


Greetings All:

First, I am apologizing in advance for any typos in this email.  Schedule is
very tight, but I wanted to make sure that everyone had it first thing this
morning, with some back-up info that I've included below.

Attached is the email that was sent to Ken Lay's office yesterday evening for
delivery to Sen. Brulte.  It's of course confidential.  Few points:

I don't have Bev's email, so if you could please forward to her, that would
be appreciated.
As we discussed (Jim, Mike, Bev, Scott, Hedy) on our lengthy call on
Wednesday, I'm assuming that the plan is still to "wallpaper" Sacramento with
our proposed legislation.
This email does not contain the legislation.  Mike sent the "final" versions
of our legislation out yesterday, except for the siting piece, which I
believe Brian Cragg of Mike's office is finalizing today.
You'll note that we promise Senator Brulte in the email that we'll deliver to
his office today the proposed legislation.  Again, based on our call on
Wednesday, I'm assuming that we would simultaneously release the proposed
legislation to the rest of the world at the same time.
When we spoke on Wednesday, we decided that the Sacramento team would
determine to whom we would circulate the proposed legislation at the same
time that we deliver the Senator Brulte. I'm assuming that you folks will
handle that end of things.  Please let us know at your convenience to whom
you've decided to circulate.
This email does, however, include a "summary" of our proposed legislation.
But I'm not certain that the summary included in this email is the
appropriate language to distribute "to the world," or if we'll need instead
to tailor some new language.  I think we all agreed that we need a "one
pager" to accompany the legislative package so that we can communicate the
package effectively.
We also discussed the need to quickly develop a coalition to support our
proposals.  We didn't finalize that plan.  Perhaps the Sacramento team could
propose a plan to do that.  Perhaps we could start with our friends in the
Direct Access coalition?
We also talked about the need at this point to engage in PR and to get the PR
machinery activated, also with the goal of effectively communicating our
legislative package/message.  We're in a meeting with folks today where we
can discuss getting that side of things going and Karen Denne has contacted
Marathon and they're pondering some things that we can do in the near term.
You'll note that there's a considerable amount of information about the DWR
credit issue.  As I recollect, we discussed the issue in depth on the call.
You note that attached to the email is a "legislative fix" to AB1X that could
solve the credit issue and an attached set of "taking points" related to a
second alternative to solving the credit issue:  a PUC order clarifying that
DWR will get its money for power purchase costs.
Note also that Steve Kean reminded me that we've got to continue to push to
get the utilities out of the merchant function.  Accordingly, I've put a
brief paragraph on that issue in the note to Brulte in the last section
(legislative solution) under the topic "create a real competitive retail
market in California."  To the best of my knowledge, we don't have
legislative language on that piece yet, and it seems that we'll need to
discuss it in considerably more depth before doing so.

If you have any questions about any of the materials in the email, please
don't hesitate to contact me or Jim or Sandi to discuss.  I can be best
reached to day by pager at 888.916.7184.

Thanks to all for helping pull this together.

Best,
Jeff

----- Forwarded by Jeff Dasovich/NA/Enron on 02/16/2001 08:27 AM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	02/15/2001 06:11 PM

		 To: jdasovic@enron.com, skean@enron.com, Richard Shapiro/NA/Enron@Enron,
James D Steffes/NA/Enron@Enron
		 cc:
		 Subject:

Steve:
Here's a substantially more cleaned-version, with attachments.  There's a
hard copy on your chair.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 02/15/2001 05:57 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	02/15/2001 05:56 PM

		 To: jdasovic@enron.com
		 cc:
		 Subject:

Jim:
It was a pleasure speaking with you yesterday.  Based on our conversation,
this email includes the following:

An Enron contact to discuss developing small-scale generation on Tribal lands.

Our views on the impediments to distributed generation and suggestions on how
to remove those impediments.

A description of the credit issues that continue to impede DWR,s ability to
sign contracts with power suppliers, and options to resolve them. Two
possible options for addressing the credit issue are 1) a California PUC
order clarifying that DWR will recover its power purchase costs through
rates, and 2) an amendment to AB1X designed to accomplish the same goal.  I
have attached talking points regarding the California PUC order and proposed
amendments to AB1X.  We believe that an amendment to AB1X is the preferable
option.

Our assessment of the supply/demand picture in California.

Our suggestions for a legislative package designed to solve both the near-
and long-term electricity crisis in California.  We will deliver to your
office tomorrow detailed legislative language.  In those materials we will
also identify existing bills that we believe can easily accommodate our
proposed language.

I hope that the information is useful.  Please do not hesitate to contact me
if you would like to discuss these materials further, or if there is anything
else that I can do to assist you.

Regards,
Ken

Contact Information to Discuss Interest Expressed by Native American Tribes
in Installing Small-scale Generation on Tribal Lands

David Parquet, Vice-President
Enron North America
101 California Street, Suite 1950
San Francisco, CA 94111
Phone: 415.782.7820
Fax: 415.782.7851

2. Key Barriers to Distributed Generation

Excessive and Unnecessary Utility Stand-by Charges

Solution: The executive orders issued by the Governor on February 14th took a
step in the right direction.  Utility stand-by charges have always been
designed by the utilities to protect their monopoly position, extract
monopoly prices from customers, or both.  But there is no reason to limit the
elimination of these charges to generation facilities that are less than
1MW.  These limits will only lengthen unnecessarily the time it takes for
California to close the significant gap between supply and demand and reduce
the risk of black outs this summer.  We would propose lifting the cap by
offering amendments to SB27X, which is designed to facilitate development of
distributed generation.

Excessive delays and costs related to interconnecting facilities with
investor-owned and municipal utilities

Solution:   The Governor,s executive order regarding interconnection is a
step in the right direction*D-D-26-01 requires utilities to complete
interconnection studies within 7 days.  California should ensure that this
requirement applies to all generation facilities, including distributed
generation.  In addition, the financial conflicts the utilities face when
interconnecting generation facilities are simply too powerful to overcome
through executive orders or other regulations.  To the greatest extent
possible, California should shift control over interconnection away from the
utility and place that control with the California ISO.  This could be
accomplished through amendments to SB 27X.

Permitting and Air Quality Issues
Developers of distributed (i.e., &on-site8) generation that is 50 MWs or
greater must receive certification from the California Energy Commission and
therefore face all of the impediments to development that large-scale
generation faces.

Solution: California should ensure that the executive orders (D-22-01 thru
D-26-01) issued by the Governor to expedite plant siting and maximize plant
output apply equally to smaller scale, &distributed generation8 facilities.
In addition, distributed generation that is less than 50 MWs continues to
face local opposition.  The State should ensure that local, parochial
interests cannot block otherwise beneficial distributed generation projects.
These objectives could be accomplished through amendments to SB27X.

3. Credit Concerns Regarding Authority Granted to DWR in AB1X to Purchase
Electricity on Behalf of the Utilities

Enron responded to the RFP issued by DWR to enter into power contracts with
suppliers.
Enron is in active discussions with DWR to establish contract terms with the
goal of entering into a power purchase agreement as soon as possible.
However, ambiguities contained in AB1X have created significant credit risk
concerns that need to be resolved in order to finalize contract terms.
We understand that the lion,s share of counterparties share Enron,s credit
risk concerns.
Enron has proposed several options for resolving the credit risk issues and
is working with DWR to arrive at a solution that is mutually agreeable to
both sides and that might serve as a template for power purchase agreements
going forward.

Summary of the Source of the Credit Risk Issue

Ambiguous Ratemaking Authority
The language in AB1X is ambiguous as to whether DWR has any authority to
charge California ratepayers for the costs of purchasing power.  From our
analysis of the bill, the language in AB1X appears to leave intact the
California PUC,s exclusive jurisdiction over ratemaking in California.  As
such, suppliers have no assurance that the PUC will agree to include in rates
adequate charges to cover DWR,s costs of power purchases.

Ambiguous Regulatory Authority Regarding Contract &Prudence8
The language in AB1X leaves open the possibility that the California Public
Utilities Commission could determine that power purchases made by DWR are
&imprudent.8  On the basis of such a finding, the CPUC could then refuse to
allow DWR to collect from ratepayers the costs associated with its power
purchases.  Consequently, suppliers have no assurance that the PUC will agree
to include in rates the charges to cover the costs of power contracts that
DWR has entered into with suppliers.

Ambiguous Language Regarding the Ratemaking Mechanism that Will Be Used to
Recover DWR,s Costs of Power Purchases
In addition to the ambiguity regarding ratemaking and regulatory authority
noted above, the language in the bill is equally ambiguous with respect to
the specific ratemaking &mechanics8 that AB1X directs the PUC to employ to
permit DWR to recover its power purchase costs. Based on our analysis, it is
extremely difficult to determine how the PUC would design the rates to ensure
DWR recovers its power purchase costs.  Moreover, as currently drafted, it is
difficult to determine whether AB1X would even permit the PUC to include in
rates all of the charges necessary to fully recover DWR,s power purchase
costs.  Again, this ambiguity raises significant credit risk concerns since
suppliers have little assurance that DWR will have the ability to recover
from ratepayers the costs of purchasing power.

Options to Resolve Concerns Regarding Credit Risk

We have been working diligently with DWR officials to resolve the credit risk
issues.  We have identified three options:

Amend AB1X
The amendments, which are attached to this email, would clarify that a) the
PUC would accept as &prudent and reasonable8 all purchase costs incurred by
DWR, and b) the PUC is obligated to include in rates the charges necessary to
ensure that DWR fully recovers its costs of power purchases.  This is the
preferred option, though we understand that the there may be some political
challenges standing in the way of amending AB1X.  (See attached file
entitled, &AmendAB1X.doc8.)

Clarify the Ambiguities in AB1X through an Order Issued by the PUC, and
through Contract Language
This is the option that we are currently working with DWR officials to
implement.  However, it is more complicated and could take significantly more
time to implement than the "legislative" fix.  We have attached electronic
copies of the talking points related to the order that the California PUC
would need to issue under this option.  (See attached file entitled,
&cpuctalkingpoints.doc.8)

Make Use of Other Instruments Designed to Address Credit Risk
As indicated in our letter responding to DWR,s RFP, we are willing to accept
other forms of credit from DWR.  Those options include a letter of credit,
cash prepayment, or an acceptable form of collateral.  DWR officials have
indicated to us that DWR prefers to pursue the second options. That is, DWR
prefers to clarify the ambiguities in AB1X through a PUC order and through
contract amendments.

4. California,s Supply-demand Picture Heading into Summer 2001

Both the California Energy Commission and Cambridge Energy Research
Associates (CERA), a private sector energy think tank, have issued reports
showing that California faces a severe supply-demand imbalance.  They differ
only on how much and how soon additional supply will be made available.  All
credible sources agree that supply will be very tight throughout the Summer
of 2001 and that unless a solution is found immediately, blackouts are
likely.

CEC and CERA both forecast that California will be short of supply this
summer by approximately 5,000 MW.   These numbers are in line with our
estimates.  California,s supply base currently has a 6% capacity margin, well
below the average 15-20%, which is recommended for reliable system operation
in the West.  Since the West relies more heavily upon hydroelectric power
than other regions, reserves are particularly important, owing to the
unpredictability of the weather and the dry year the West has experienced to
date. In the event of a low rain and snow period, the system must possess the
flexibility to respond to the reduced availability of power supply.
California,s very low reserve margin makes it especially susceptible to this
requirement.

Other reasons for reduced supply for the Summer of 2001 include the early
draw-down of reservoirs in the continual effort to manage California's severe
supply-demand gap; emissions restrictions on existing plants; and a reduced
number of customers who can be curtailed under their contracts with the
utilities.  Cambridge Energy Research Associates asserts that at the current
pace of siting, permitting and construction, adequate supplies will not be
added to correct the market imbalance until 2003 at the earliest.

CERA predicts that California is likely to face approximately 20 hours of
rolling black outs this summer.  The CEC paints a considerably more
optimistic scenario, betting that California will bring an additional 5,000
MWs on line to meet peaking summer demand.  It is our view that California
should view the CEC's "rosy scenario" with considerable skepticism.

5. Suggested Package of Legislative Proposals Designed to Solve California,s
Electricity Crisis

This email offers an overview of our proposed legislative solution.  We will
deliver to your office tomorrow specific legislative language and existing
bills that we believe can accommodate our proposals.

As we have suggested throughout the crisis, any solution to California's
crisis must focus on four issues:

Increase supply
Decrease demand
Establish a truly competitive retail electricity market
Return California,s Investor-owned utilities to solvency

Increase supply--Legislative vehicle: SB28X (Sher)
To site and construct a power plant in Texas takes approximately 2 years.
Enron and others have completed the entire process in other states in less
than a year.  In California, it takes about six years, or longer.

The Governor,s executive orders and Senator Sher,s siting reform legislation
are steps in the right direction.  Our suggested amendments can improve those
efforts by further addressing the difficulties that project developers face
in securing air emission reduction credits to meet the air permit
requirements included in the CEC's certification requirements.  Enron,s
proposal seeks to streamline the process for 1) obtaining credits and 2)
transfering credits between air districts.  In addition, it creates an
innovative emissions reduction bank to allow project sponsors to fund
emissions in advance of obtaining certification, and permits the affected air
districts to use those funds to finance projects that will produce the
required reductions in pollution emissions.

Decrease demand*Legislative Vehicle:   AB31X (Wright)
Because of the delay in getting a solution in place in California, closing
the supply-demand gap through energy conservation and efficiency offers the
best chance of avoiding blackouts this summer.  This can be accomplished most
effectively and quickly in two ways:

Buy-down demand
California is tapping into an enormous amount of money from the General Fund
to finance DWR,s power purchases.  California could likely reduce demand more
economically by running an auction to determine the payments businesses would
be willing to receive to reduce their demand for a sustained period (e.g.,
through the summer months).  DWR could easily run an on-line auction to
determine the price it could pay for these demand reductions.  To
participate, businesses would be required to have the metering equipment
necessary to monitor and verify that they are actually achieving the
reductions.  Enron has developed an on-line auction software package, &Deal
Bench,8 that it would be willing to contribute to the effort.

Use Price Signals to Incent Voluntary Curtailment
To be successful, customers need access to the following key elements:

An internet based hour-ahead price posting system to track the market price
for hour-ahead power in real time.
Real-time metering systems for baseline demand and voluntarily curtailment
verification.
Settlement process that allows for market clearing prices of energy to be
paid for load reduction (&Negawatts8).

The potential benefits of an effective demand response program would include:

&creation8 of additional summer peaking capacity in California, particularly
in the short term, without requiring construction of additional generation
resources.
reduction of  peak or super-peak load on the over-stressed California
electric system, thus potentially reducing the overall cost of electricity in
the state.
fostering of demand elasticity without subjecting customers to the full risk
of hourly market price volatility by passing market price signals to
customers and allowing them to voluntarily shed load and be compensated for
responding.

We estimate that we could generate a summer 2001 on-peak demand response in
excess of 400 MW during certain high cost hours, and a demand response for
summer 2002 on-peak hours that could exceed 1000 MW.  We further estimate
that the market response to this program from all ESPs could be 2 to 3 times
that amount.  We recommend that the State of California provide rebates
directly to customers to fund the installation of advanced metering and
control systems that would support load curtailment implementation.

Establish a truly competitive retail electricity market*Legislative vehicle:
SB27X
The only customers who were protected from price volatility in San Diego were
customers who chose Direct Access and signed fixed price deals with energy
service providers.  Ironically, AB1X takes that important option away from
customers and businesses.  It is critical that AB1X be amended to remove the
prohibition against Direct Access.

Enron's legislative proposal would give customers freedom to enter into a
direct access transaction, while simultaneously addressing the Department of
Water Resources' concerns about stranded power costs that might result from
customer migration.

In addition, California will only achieve a competitive retail market when
the utility is removed completely from the procurement function.  Procurement
is not a utility core competency, as evidenced by the dire financial
condition in which the utilities now find themselves.  California should
therefore begin immediately to phase the utility out of the procurement
function entirely, with the goal of having all customers served by a
non-utility provider within 36 months.  To execute the transition, California
should hold a series of competitive solicitations over the 36-month period in
which competing service providers would bid for the right to serve segments
of utility load.

Return California,s Investor-owned utilities to solvency*Legislative vehicle:
AB18X
Utility bankruptcy will not increase supply and it will not decrease demand.
In short, bankruptcy does nothing to solve California,s supply-demand
imbalance.  In addition, bankruptcy increases the likelihood that consumers
and businesses will bear the significant financial risks of having California
State government assume the role of &electricity buyer8 for an extended
period of time.  Finally, bankruptcy will undermine both investor confidence
in California's energy markets and the private sector's willingness to
participate in that market.

California can return the utilities to financial solvency by implementing a
series of staged rate increases.  California should design those rate
increases with the dual goal of returning the utilities to solvency without
&shocking8 the economy or household budgets For example, California could
amortize the recovery of the utilities, past debt over a 5-10 year period.
In addition, the magnitude of the rate increase can be reduced in two ways:
First, the utilities could absorb some portion of their existing debt in
recognition of the risk they accepted when they agreed to the structure of AB
1890.  Second, California can &net8 the revenues the utilities have received
from selling electricity into the Power Exchange against the debts they have
accrued due to the retail price cap.


361-972-6238

Finally!


Patti/Kim:

Can you handle this?  Put a deal in the system to deliver a total of 3000
MMBtu plus fuel into the Citizens IT agreement and schedule it to the Nogales
delivery point.  Do it some time before the end of the month Citizens will
pay the transport bill. They will pay us for the gas.

Chris

--------------------- Forwarded by Chris H Foster/HOU/ECT on 01/25/2001 11:17
AM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  CoganJA@aol.com                           01/25/2001 10:29 AM

To: Chris.H.Foster@enron.com
cc: sbreen@czn.com, cwlipke@czn.com
Subject: Re: Nominations for February

Chris,

This is to confirm our conversation today requesting that Enron delivery
3,000 Dth to Nogales #3 (Power Plant) under Citizens' El Paso interruptible
transportation agreement.

Thanks,

John

John A. Cogan

Johnco Group
3629 Lake Kristin Drive
Gretna, LA 70056
Phone  (504) 392-7557
Cell      (504) 491-2874
Fax      (208) 730-4713


i will probably go to woody's thurs if i have a good week.


Susan, I just got an invoice from Superior for the unwinding of the Sonat trigger deal.  The invoice covers production months 12/01 through 08/02 and is for $3,761,900.00.  Have you put something in the system for this?

Thanks
Laurie Ellis
Specialist - Gas Settlements
Enron Net Works LLC
Phone: (713) 345-9945
Fax:  (713) 646-8420
email:  laurie.ellis@enron.com


---------------------- Forwarded by Darron C Giron/HOU/ECT on 10/25/2000
09:11 AM ---------------------------

Dawn C Kenne
10/25/2000 09:02 AM
To: Jennifer Baer <jbaer1@maine.rr.com>, "Amanda Barnard"
<ajbarnard@houston.rr.com>, Pam B Boxx/HOU/ECT@ECT, PMDESMAR@earthlink.net,
maxnbev@wesnet.com (Max Fledderjohann), "garynkay"
<GARYWGARRETT@email.msn.com>, Darron C Giron/HOU/ECT@ECT, "B. Kenne"
<yona_edoda@yahoo.com> @ ENRON, plmichaud <plmichaud@pdq.net>, Eric
Wardle/HOU/ECT@ECT, Ed Zajicek <e.zajicek@pentasafe.com>, Sheri
Thomas/HOU/ECT@ECT, Jennifer Bagwell/NA/Enron@ENRON, Jason
Wolfe/NA/Enron@ENRON, Jeffrey C Gossett/HOU/ECT@ECT, Phillip M
Love/HOU/ECT@ECT
cc:
Subject: Algore

---------------------- Forwarded by Dawn C Kenne/HOU/ECT on 10/25/2000 09:00
AM ---------------------------

"Bythewood, Richard" <rbythewood@txi.com> on 10/25/2000 08:51:32 AM
To: "'Brad Baker'" <bbaker@mesh.net>, "'Brad Levy'" <brad_levy@compusa.com>,
"'Brendan O'Brien'" <brendano@crossmk.com>, "Michael, Chris"
<cmichael@txi.com>, "'Darrell Brown'" <dkbrown2@flash.net>, "'Dawn Wilson'"
<Dawn.C.Kenne@enron.com>, "'Fred Silva'" <silvauh60@aol.com>, "'Garrett
Goeters'" <garrett.goeters@compaq.com>, "'Gary Wilson'"
<R.Wilson@oracle.com>, "Spindler, Jenny" <jspindler@txi.com>, "'John
Belcher'" <johnbe@microsoft.com>, "'John Everett'"
<john_b_everett@email.mobil.com>, "'John Stefek'" <stefek@onramp.net>,
"'Karen Hendrix'" <karen.hendrix@biin.com>, "'Kevin Kalis'"
<kkalistx@hotmail.com>, "'Kristin and Darrell Herbel'" <KUAlums@aol.com>,
"'Matt Louk'" <sigmaxaa@ix.netcom.com>, "'Mike'" <mike@bythewood.com>, "'Mike
Parker'" <MParker173@aol.com>, "'Mitch'" <mitch4269@hci.net>, "'Mom'"
<rbwood@flash.net>, "'Nathan Reese'" <nreese@mindspring.com>, "'Philip
Stavens'" <pstavens@flash.net>, "'Roger @ Home'" <gbythewood@aol.com>,
"'Roger @ Work'" <Roger.BythewoodJr@add.ssw.abbott.com>, "'Sal Navarro'"
<JANSAL@aol.com>, "'Sandra Dial'" <sdial@ect.enron.com>, "'Sandra Dial'"
<sdial@ix.netcom.com>, "'Scott Martin'" <scotta@wt.net>, "'Scott Spindler'"
<Sdspindler@aol.com>, "'Shelly'" <rbwood@ix.netcom.com>, "'Steve Dillard'"
<steve_dillard@matrixes.com>, "'Tim and Missy'"
<Tim_Holmes@intgate.rbfalcon.com>, "'Tim Holmes'"
<tholmes@intgate.rbfalcon.com>, "'Tom Collier'" <tgcollier@msn.com>, "'Wally
Gomaa'" <wally.gomaa@gwl.com>, Ben Weeks <bweeks@txi.com>, Bradley Priest
<bpriest@txi.com>, Darrell Marshall <dmarshall@txi.com>, David Malchow
<dmalchow@txi.com>, Skip Wagner <swagner@txi.com>, Taylor Evans
<tevans@txi.com>, Brendan Obrien <brenman@ix.netcom.com>, Chris Michael
<cmichael@txi.com>, Don Copeland <donald.copeland@telops.gte.com>, Doug Webb
<dwebb2@pdq.net>, Gary Wilson <R.Wilson@oracle.com>, Juan Harris
<JHarris914@aol.com>, Kevin Cooper <Kevin.Cooper@txdps.state.tx.us>
cc:

Subject: Algore

My apologies to you left-wingers who may receive this e-mail...

While Al Gore  has a habit of exaggerating his record, these numbers tell
us the real truth  about his record on education, healthcare and taxes:

AL GORE'S  EDUCATION PLANS...

$10,000...? tax deduction that Al Gore says will  be received by "all
students who want to go to college".

$800... tax  deduction is the reality.

0... students working their way through college  getting a tax credit
because they do not pay enough in income  taxes.

30,000,000... low-income households get no benefit on Gore's  education
plan.

0...? families making over $20,000 get a  benefit.

5,000,000... upper income families are ineligible.

0...  deductions or credits for room, board, books, supplies, and travel.

1...  education plan that is almost identical to the one that failed in the
Clinton  White House.

AL GORE'S PROGRAM ON HEALTHCARE:

$600... access  fee per year to obtain prescription drug coverage under the
Gore  plan.

412... new regulatory mandates created by the Gore Medicare  plan.

182... new regulations dealing with prescription drugs  alone.

64.5... the age you are when you have your one and only  opportunity to buy
into a government HMO.

8... year wait for Gore's plan  to be implemented.

2... times the price of Bush's plan to create more  government bureaucrats

THE VICE PRESIDENT ON TAXES:

88...  separate tax increases along with 42 new user fees Gore proposed in
the 2001  budget.

11%... how much the tax burden has increased over the last 8  years.

$500... per child tax credit was never included in previous  Clinton/Gore
budgets.

50,000,000... taxpayers will not get tax relief  under Gore's plan.

$1,400... couples will pay in taxes because Gore  opposed the Marriage
Penalty tax cut.

4.3 cents...? tax increase on  a gallon of gas because of Gore's
tie-breaking vote.

THE MOST  IMPORTANT NUMBERS:

17... days until the election.

PLEASE PASS THIS  ON TO ALL YOUR FRIENDS!

Sincerely,

Jim  Nicholson
Chairman
Republican National Committee

P.S.??  The average Republican has 28 names in his or her email directory -
that means  if we all forward this message to our friends, this one email
can reach 14  million citizens!? Please forward to your friends and make
sure every  online Republican signs up at

http://www.echampions2000.com

Thanks.


? Hertzberg and Keeley announced that they are filing a petition with FERC to
rehear the April 26th decision regarding price caps.  After going to D.C. and
meeting with several FERC members, they decided to file for a rehearing.
Their filing asks that the order should be in affect around the clock instead
of just during Stage 1, that the actual costs be tied closer to the pricing
of the product, and anyone that exceeding the cost-based pricing system have
a 100% penalty.

? Hertzberg and Keeley had a press conference today at 1:30 PST.  Questions
included the impact of today's ruling and how it would affect Plan B,
Hertzberg replied he was not sure.    He also indicated that they support the
Feinstein bill and if the lawsuit or the rehearing efforts do not work,
legislation is the last chance for price caps.  Hertzberg also indicated that
he was getting to the point where CA "may just say no to prices that are too
high" (via buyer cartel).


Louise,

As I mentioned in our meeting today, attached is a map with a general description of Orion's assets.  Given the location of Astoria, I am sure we would find it interesting.  However, it is generally understood in the market that Goldman is selling the company (not assets).

I got to know these guys pretty well last year when we (Delainey and I) spent some talking with them about a JV with our peakers.  Let me know if you have any questions.

Don


Can either of the two distinguished Jim's from accounting help me with a
financial liquidation problem from 0007.  I have a deal NR2989.1 that is
showing up in my actuals for the beloved FRED file for this production
month.  When I look at the deal in TAGG, the deal is an annuity booked to
NG-Price.  I do not believe this should be in the central region.  Any
assistance in clearing this is much appreciated due to the fun meeting we had
yesterday regarding financial liquidations.  Thanks for your help guys.
Cathy this should clear/address all of our issues in 0007 for fin. liq.
PL


Note:  WEFA has made some interesting points in their conclusions of this
study.

Gas Turbines Headed for a 50% Meltdown

High natural gas prices, performance issues and higher than expected
maintenance costs, a general economic slowdown and several other key factors
will combine to create a "near-term meltdown in the gas turbine market,"
according to a report by WEFA, Inc.

Reporting on a study about to be published by the analysis and consulting
firm based in Eddystone, PA, one of its authors predicted "a substantial
short-term correction in the gas turbine market..which could render 50% of
current North American projects uneconomic." Jason Makansi, principal of
Makansi & Co., pointed to other factors, such as the inexperience of many
generating companies with the hedging and trading skills necessary to
optimize profits in the peaking market, the rise of "stealth capacity" from
refitted or otherwise optimized coal and nuclear plants, "gas transportation
bottlenecks and persistent issues with safety and explosions," and "a
protracted quasi-regulatory quagmire."

Under the heading of stealth capacity, "old assets are being purchased or
merged into new electric economy organizations that will improve capacity
factors at coal-fired plants from the typical 60-65% to perhaps 80-85% within
five years." A major part of the gain will come simply from operating the
assets to serve the market and not just a single service territory, Makansi
said. He reported on the soon-to-be released study at WEFA's World Economic
Conference last week in New York.

The nuclear industry is experiencing a similar transformation. Several years
ago predictions were that as much as one-third of nuclear plants would soon
be retired. Today, with many units sold to new owners and re-licensed, it
appears the retirement rate will be more like 5-10% and productivity for the
remaining units will be increased.

The WEFA report points to a "technological correction" for the advanced
technology "F-Class" turbines going into most new plants today, as unexpected
problems crop up with extended use. There are a host of problems in the
technology area, which can be met, but at a cost: the new units may not meet
emissions targets without impacting efficiency, heat rate and durability;
fuel-switching is not living up to its advance billing; units may not perform
as well at high ambient temperatures; overhauls are required more frequently
than had been expected; maintenance costs also are exceeding expectations;
and fuel quality is becoming an issue.

"Variable O&M costs at some projects with F-class machines are running as
high as $25,000 to $30,000 per start. Considering that some of these machines
may exhibit several hundred starts in a year, you have a variation of that
worn phrase, "a start here, a start there, pretty soon you're talking about
real money!"

"The bottom line of all this is that many of the claimed performance
advantages of the gas turbine have been lost or severely eroded." Makansi
also pointed to similar experiences with gas turbines in the U.K., Asia,
Australia, and Chile. He predicted a turbine market correction "and an
unavoidable plateau to work out technological kinks, modify designs and
inject reality into business models. We believe all this will push
consolidation in the generation sector of the electricity industry even
faster." Makansi predicted about half a dozen major players will control 50%
of the generation capacity in the U.S. within five to 10 years.

Co-authors of the report include Robert Swanekamp, a principal of Competitive
Power Resources; engineering consultant Jeffrey J. Fassett; and Kemm Farney,
vice president, WEFA Electric Power Service. For more information go to
www.wefa.com.


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Happy Contrails,
Bob "Mr. Maximiler" Jones
--------

QUESTIONS? COMMENTS?: We'd love to hear from you!  Drop us a line at
editor@onetravel.com.  Send us your air travel questions for professional
advice from our panel of experts, or stop by http://www.onetravel.com for
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REMEMBER...If the Savings ALERT airfares don't meet your specific travel
needs, Onetravel.com's everyday discounts can save you up to 70% off regular
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Thanksgiving - Thursday, November 22, 2001
Monday, November 19 - Preschedule for Tuesday-Wednesday, November 20-21 (2)
Tuesday, November 20 - Preschedule for Thursday-Saturday, November 22-24(3)
Wednesday, November 21 - Preschedule for Sunday-Monday, November 25-26(2)

Thanks,
Stacy


Lorraine,

Update--I spoke with Marcos this morning, he said that he was never given a
document by Andy on Friday to deliver to Tana.  We are all at a lost
regarding the missing document.

Regards,

Lydia Cannon
Assistant to Andy Zipper
713-853-9975
713-408-6267 cell
Lydia.Cannon@enron.com


The Meeting for the Traders has been set up for these times

Location : 42C1
Time : 12pm to 2.30pm

Agenda:
	Brief Review of LMP
	Load Forecast
	PJM Summer Supply/Demand Status
	Nepool/PJM Status Update
	Physical Curtailment Risks / TLRs
	Max Gen Risks in PJM
	Unit Commitment for Reliability Timelines
	Self Scheduled Generation Information.

Please forward this information


I entered the sale to Allegheny in Sitara (deal 224977) effective 4/1/200
thru 10/31/2000.

Dick, Scott, the sales price is trigger deal priced at  NX1 + $.22.
Allegheny holds the trigger and the daily volume is 1,532 day at Leach or the
CGAS pool.

My contact at Allegheny is Nat Miljus (phone 412-394-2953).

David is going to make me fill out a term ticket and I'm running it through
Dick's book.


Hi,

I want to let you know about a QuickBase database called "Pool Information Guide".  You can get there by clicking this link:

 https://www.quickbase.com/db/6545ewmy?a=i&pswd=dynicdfpr

Here's a quick description of the database:

"WELCOME to the "Pool Information Guide" and thank you for taking the time to register!  Please click "ADD RECORD" to fill in the template with your information.

This on-line database was designed to help all of us stay in touch this summer at Enron and beyond (and to save us from having to keep forwarding and updating spreadsheets).  Feel free to update your record and/or download the database as often as you like.  Please encourage your peers to register with the site so that we may all benefit from having one central reference point.

You can use this site to locate someone's desk, to find out who is working on projects of interest to you, to get the word out about your interests beyond your assigned project, to round up folks to discover Houston with, to see who is celebrating a birthday, or to plan a carpool or shared commute to the office.

You will notice that there are several required fields - these fields will be used by HR for their "book."  All Summer Associates & Analysts will receive a copy of this book, which will also contain our pictures.

Enjoy!
    John Walt

(Please direct technical questions to Laura Ann Jones at 3-1413 or laura.jones@enron.com)

Instructions in Short:
______________________

To ADD YOUR CONTACT INFORMATION:  Click on "Add Record" and fill in the template.

To PERUSE the database:  Click on "List"

To EDIT your record:  Click on "List" then "Edit"

To DOWNLOAD the database into Excel:  Click on "List" then "Spreadsheet".

To PRINT the database:  I highly recommend downloading the database and then printing as usual from Excel.  Printing from the web page only gives you part of the whole spreadsheet.

To SORT the database:  Click on one of the pre-defined "Views" to the left.  Email me if you want to sort by something new.

ps.  The reason we need to keep our attached pictures 10k or less is QuickBase is only free for databases less than a meg in size.

pps.  Please keep in mind that if you lose your password or want to invite other people to join the Pool Information Guide - just send me an email and I can help.  <laura.jones@enron.com>"

By the way, going to the link above will automatically add you (or anyone else) to the access list for this database, so be careful to whom you forward this e-mail! (This link will expire in 30 days.)

If you're not already a QuickBase user click this link anyway.  At the sign-in screen click the Register link.  When you're all done registering, QuickBase will bring you right to this database!


Further to my previous email, Competition Act Canada and Investment Canada Act approvals are currently contemplated as conditions to closing.

We (ECC) have provided UBS and its counsel with all information and warranties that they need to convince themselves that no pre-closing approvals are needed in the circumstances (they only need to make a post-closing notification), but it is ultimately their decision, and we have yet to hear back from their counsel, although we don't anticipate any problem.

 -----Original Message-----
From: 	Keohane, Peter
Sent:	Monday, February 04, 2002 9:06 AM
To:	Kitchen, Louise
Cc:	Milnthorp, Rob; Lavorato, John; Whalley, Greg; Haedicke, Mark E.
Subject:

The ECC estate has this morning proposed a frankly over-the-top list of human resource, systems, software and services requirements from UBSW Canada after closing.  Milnthorp and I have just had it out with Kyle Kitagawa and his counsel.  We will let you know.

Other items that need to be resolved for closing:

1.  Need to finalize Canadian Master Agreement - comments provided Saturday

2.  Need to finalize Canadian Transitional Services - see above

3.  Need to finalize Canadian office lease arrangements with landlords

4.  Need to finalize the list of FF&E to be kept by the estate

5.  Need to finalize the UBS AG counterparty/guarantee issue

____________________________________
Peter C.M. Keohane
Vice President, Assistant General Counsel
and Secretary
Enron Canada Corp.
Phone:	(403) 974-6923
Fax:	(403) 974-6707
E-mail:	peter.keohane@enron.com


Horrible, unfortunately.  He was the loudest, most articulate voice appearing before the PUC on the 20th, staunchly--and I mean staunchly--opposing DA.  If I see him, I'm going to get all over him.  But me thinks the contracts are in for a wild ride.

 -----Original Message-----
From: 	Comnes, Alan
Sent:	Monday, October 01, 2001 4:01 PM
To:	Dasovich, Jeff
Subject:	RE: Consumer Groups, Calif PUC Question Pwr Contract Validity

Good to see Bill Ahern back in the mix ...

 -----Original Message-----
From: 	Dasovich, Jeff
Sent:	Monday, October 01, 2001 1:44 PM
To:	Shapiro, Richard; Comnes, Alan; Steffes, James D.; Kean, Steven J.; Mara, Susan; Kaufman, Paul; Denne, Karen; Palmer, Mark A. (PR)
Subject:	Consumer Groups, Calif PUC Question Pwr Contract Validity
Importance:	High

Consumer Groups, Calif PUC Question Pwr Contract Validity
LOS ANGELES (Dow Jones)--Two California consumer groups have asked California Attorney General Bill Lockyer to investigate whether some state electricity contracts should be nullified because of a possible conflict of interest held by one of the state's negotiations, according to a press release Monday.
The Utility Reform Network and Consumers Union asked Lockyer to examine whether income earned from energy companies by consultant Vikram Budhraja presented a conflict of interest, because he may have been involved in contract negotiations with those companies
We believe there is ample evidence for the Attorney General to investigate whether some of the state's electricity contracts were made in violation of California's conflict of interest laws," said Bill Ahern, senior policy analyst with Consumers Union West Coast Regional Office. "If the Attorney General finds that a contract was made in violation of the law, it must be set aside as void."
Three weeks after Budhraja's January hire date, Williams Companies (WMB <http://quicken.excite.com/investments/quotes/?symbol=WMB>, news <http://quicken.excite.com/investments/news/?symbol=WMB>, msgs <http://quicken.excite.com/investments/discuss/?symbol=WMB>) won a $3.4 billion contract to provide power to the state over 10 1/2 years. Budhraja disclosed in mid-August that his company, the Electric Power Group, was paid more than $10,000 by Williams during the previous 12 months. Budhraja was hired by the California Department of Water Resources to negotiate power contracts, but hasn't said which generators he dealt with in the weeks before the Williams contract was signed.
"It is reasonable to assume that Budhraja may have been involved in the negotiations that led to the Williams contract," Ahern said. "It is also likely that there are more detailed records and evidence in existence, which only a subpoena or search warrant may uncover."
The groups also are concerned that Budhraja may have held a conflict of interest due to his potential involvement in negotiating a $3.9 billion contract with Allegheny Energy Inc. (AYE <http://quicken.excite.com/investments/quotes/?symbol=AYE>, news <http://quicken.excite.com/investments/news/?symbol=AYE>, msgs <http://quicken.excite.com/investments/discuss/?symbol=AYE>) while he owned stocks in energy companies, according to the release.
The Attorney General's office recently said it doesn't plan to investigate conflicts of interest involving energy contract negotiations. No one at the office could be reached for comment Monday.
The California Public Utilities Commission is also petitioning federal regulators to throw out some of the state's $43 billion in long-term energy contracts, the San Francisco Chronicle reported Monday.
The CPUC has argued in filings with the Federal Energy Regulatory Commission over the past three months that energy companies took advantage of the state's energy crisis to negotiate high-priced contracts, according to the report. The average price of power under the contracts is $69 a megawatt-hour, more than double peak electricity prices last week.
CPUC lawyers have filed challenges before the FERC on deals negotiated with Scottish Power (SPI <http://quicken.excite.com/investments/quotes/?symbol=SPI>, news <http://quicken.excite.com/investments/news/?symbol=SPI>, msgs <http://quicken.excite.com/investments/discuss/?symbol=SPI>) unit PacifiCorp, Alliance Colton LLC, Sempra Energy (SRE <http://quicken.excite.com/investments/quotes/?symbol=SRE>, news <http://quicken.excite.com/investments/news/?symbol=SRE>, msgs <http://quicken.excite.com/investments/discuss/?symbol=SRE>) and Calpine Corp. (CPN <http://quicken.excite.com/investments/quotes/?symbol=CPN>, news <http://quicken.excite.com/investments/news/?symbol=CPN>, msgs <http://quicken.excite.com/investments/discuss/?symbol=CPN>), according to the report.
Budhraja disclosed in August that he owned as much as $10,000 in Scottish Power stock while a $1 billion long-term contract with subsidiary PacifiCorp was being hammered out. The state signed the 10-year contract July 6. Budraha sold his stock July 30. State officials say Budhraja had nothing to do with the deal, according to the report.


Christie,

This is one of the communications regarding Rice CFOs conference.

Andy requires some gentle persuasion.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/10/2001
08:20 AM ---------------------------

David Ikenberry <daveike@rice.edu> on 04/09/2001 01:27:24 PM
To: Vince.J.Kaminski@enron.com
cc:
Subject:

Hi Vince,

I may have missed something, however don't believe I have received any
communication recently from Andy Festow about this upcoming May 4-5 corp.
fin. conference.  I hope he is still planning to come, yet I don't know as
of now.

I have Andy penciled in as a participant on a "panel" that is discussing
equity dilution from stock option compensation (the role of panelist should
require little, if any, preparation time).   Of course, I want Andy to
come, however he is concerned about his ability to attend, I probably
should identify another person or two to serve on the panel.

Dave.

***********************************
Prof. David Ikenberry
Jones Graduate School of Management
Rice University
713-348-5385


Great--thanks for the info.  DF

Jeffery Fawcett
03/27/2000 11:54 AM
To: Drew Fossum/ET&S/Enron@ENRON
cc: Steven Harris/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron

Subject: USGT East - East Capacity deal

Except for a small amount of capacity we're managing on a short-term basis
[owing to the Topock lateral problem with PG&E], our West flow capacity is
sold-out.  Therefore, there is really no means to compare the USGT alt. flow
rights with an opportunity cost for unsubscribed firm capacity.  Moreover,
the receipt points under the USGT deal are not on the San Juan Lateral, so
any alt. West flow transportation will be marked against a Permian - Cal.
Border price spread.  However, your instincts are probably correct regarding
the practical use of the capacity -- if there is a market shift resulting is
a significant widening of the East - West spread, then we'd likely see FTS-1
shippers with primary rights more fully utilizing their firm capacity,
thereby frustrating any USGT attempt to access Cal. Border capacity.

	From:  Drew Fossum                           03/27/2000 12:23 PM

To: Christine Stokes/ET&S/Enron@ENRON
cc: Bill Cordes/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Mary
Darveaux/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Steven
Harris/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON, Jeffery
Fawcett/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron

Subject: Re:

 Steve, Kevin, and Jeff: If what I heard this morning is correct and the San
Juan-Cal. basis is up to about 25 cents, I trust that we will be selling our
Cal Border capacity with primary point rights at rates significantly higher
than the $.04 available to USGT/Aquila under this deal.  In other words, it
is very unlikely that USGT will be able to move significant volumes to
California under the $.04 part of this deal, right?  With that understanding,
I'm OK on the deal.  Thanks. DF

Christine Stokes
03/24/2000 03:28 PM
To: Bill Cordes/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Susan
Scott/ET&S/Enron@ENRON, Jeffery Fawcett/ET&S/Enron@ENRON
cc: Kevin Hyatt/ET&S/Enron@Enron

Subject:

TRANSWESTERN PIPELINE CONTRACT APPROVAL REQUEST

Please review the attached non-standard discount letter for USGT.
Transwestern and USGT have agreed to enter into a contract for 400,000 Dth/d
of primary EOT-EOT capacity for the term April 1, 2000 through October 31,
2001.   The primary EOT-EOT path will be a 2-part rate structure:  $.0075
reservation and $.0093 commodity rate. USGT will also have the ability to
flow to California on an alternate basis at a $.04 total rate.

Transwestern and USGT have agreed to enter into a Revenue Sharing Mechanism
whereby after USGT recovers their contract demand charges plus an additional
$2.5 Million in Commodity Sales Margin revenue,  then TW and USGT will share
50%/50% in any additional Commodity Sales Margin revenue which USGT may
receive.

USGT will not retain their ROFR rights for their contract.

(Please note that references to "Appendix A"  in the discount letter refer to
the FTS-1 Appendix A primary receipt and delivery point allocation of the
400,000 Dth/d primary capacity.)

Please indicate approval via REPLY WITH HISTORY.
All Officer approvals will be faxed to Bill Cordes for final President Level
Approval.


Kim,

Both Karla and I are out today.  When are the baseload quantities for
November 2001, due to you?  If I don't hear from you today, I will send them
to you tomorrow, Thursday 10/24.

Monica


I probably won't be able to go.  Could we send 2 people??
---------------------- Forwarded by Chris Germany/HOU/ECT on 01/10/2000 07:31
PM ---------------------------

Molly LaFuze
01/10/2000 03:59 PM
To: VCoen@CNGT.CNG.com
cc: Chris Germany/HOU/ECT@ECT, Katherine L Kelly/HOU/ECT@ECT, Victor
Lamadrid/HOU/ECT@ECT
Subject: TTT WORKSHOP

PLEASE SIGN ME UP TO ATTEND:
Houston-The Westin Oaks  January 20, 2000 2:00 p.m. to 4:00 p.m.
THANKS - MOLLY