Dynegy Says First-Quarter Profit Higher Than Expected (Update4)
Bloomberg, 04/02/01

Enron Italia Chief Says It Won't Buy Extra Enel Capacity
Dow Jones Energy Service, 04/02/01

USA: Enron and Saks ink energy management deal.
Reuters English News Service, 04/02/01

Kiodex To Provide Risk-Management System For EnronOnline
Dow Jones Energy Service, 04/02/01

Kiodex, Inc. To Market Risk Workbench Via EnronOnline
Business Wire, 04/02/01

Enron In Private Energy Supply Pact With Saks >ENE SKS
Dow Jones News Service, 04/02/01

Maverick of the Morning
CNNfn: Market Coverage - Morning, 04/02/01

Exxon Mobil Replaces General Motors Atop Fortune 500 (Update1)
Bloomberg, 04/02/01

Arizona Lacks Natural Gas Pipeline Capacity, Paper Reports
Bloomberg, 04/02/01

Dynegy Says First-Quarter Profit Higher Than Expected (Update4)
2001-04-02 16:15 (New York)

Dynegy Says First-Quarter Profit Higher Than Expected (Update4)

     (Updates with closing share price. For more on the California
electricity crisis, see {EXTRA <GO>}.)

     Houston, April 2 (Bloomberg) -- Dynegy Inc., a U.S.
electricity and natural-gas trader, said first-quarter per-share
profit was higher than expected on trading gains, boosted by
``strong'' gas and power demand. The company also raised its 2001
earnings forecast.
     First-quarter profit rose to 40 cents a share from 26 cents a
year earlier, the company said in a statement. It was expected to
earn 31 cents, the average estimate of analysts polled by First
Call/Thomson Financial. The company expects to make $1.92 to $1.97
in 2001, up from its previous forecast of $1.80 to $1.87, the
statement said.
     The Houston-based company runs several power plants in
California. The state has been hit by a 10-month electricity
shortage, and the average power price there rose nine-fold last
quarter from a year earlier. Colder-than-usual weather in other
parts of the U.S. helped earnings, analysts said.
     ``It's been the same thing throughout the industry -- they've
had good margins in most of country,'' said William Hyler, an
analyst at CIBC World Markets. He rates Dynegy a ``strong buy.''
     Dynegy owns Illinois Power, a utility with 650,000 gas and
power customers in southern Illinois. Dynegy's fourth-quarter
profit more than doubled, driven by power sales in the Midwest and
Northeast.
     The company also owns, manages or is building or acquiring
power plants in Texas, Arkansas, Kentucky, Georgia, North
Carolina, Louisiana, Nevada, Washington and New York. Its plants
currently generate about 13,500 megawatts of capacity, or enough
to light 13.5 million homes.
     ``I think their geographical reach has been a tremendous
asset for them,'' said Merrill Lynch analyst Donato Eassey, who
rates Dynegy ``near-term accumulate.''

                           Dynegydirect

     The company also said it has had $9 billion in transactions
on its online trading site, Dynegydirect, since its start in
November. The site had $3 billion in transactions last year.
     Shares of Dynegy rose 89 cents to $51.90. They have risen 65
percent in the past year.
     Dynegy will announce first-quarter earnings on April 17. The
company is expected to earn $1.84 a share in 2001, according to
First Call.
     Other energy traders have said in the past three weeks
they'll make more money than expected in the first quarter because
of gains in business in the U.S. West. They include San Jose,
California-based Calpine Corp., an electricity generator and power-
plant developer; Spokane, Washington-based Avista Corp., owner of
utilities in the U.S. Northwest; and Atlanta-based Mirant Corp.,
the energy-trading arm of Southern Co.
     In January, Houston-based Enron Corp., the biggest energy
trader, raised its 2001 profit forecast, partly because of trading
in North America.
     Dynegy was one of 26 energy suppliers to California accused
in a March 22 report by that state's Independent System Operator,
which controls 75 percent of California's power grid, of
overcharging the state for power. The generators say their prices
were fair based on market conditions.
     Earlier last month, Dynegy and Minneapolis-based NRG Energy
Inc., co-owners of four California power plants, agreed to sell
the state enough electricity to light as many as 2.3 million homes
through 2004.
     Chevron Corp., the No. 2 U.S. oil company, owns 29 percent of
Dynegy.

Enron Italia Chief Says It Won't Buy Extra Enel Capacity

04/02/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

VENICE, Italy -(Dow Jones)- Enron Corp. (ENE) will stay out of the auctions
for Italian power company Enel SpA's generating capacity, despite recent
developments that should bring the price of the assets down, Enron Italia
chief Riccardo Bortolotti told a conference Friday.
"We're very interested in doing risk management or power purchasing
agreements, or capacity and tolling agreements," but not in actual ownership
of the physical assets, Bortolotti told Dow Jones Newswires on the sidelines
of the conference.
Enel was recently ordered to sell an additional 5,500 megawatts of plant in
order to gain regulatory approval for its purchase of telecoms company
Infostrada. This is in addition to long-standing plans for a three-tranche
sale of 15,000 MW of installed capacity. The extra supply is expected to
reduce the realized price of the assets considerably.
Staying out of the auctions will restrict Enron's near-term options in
operating in Italy, which has the highest electricity prices in Europe.
Import capacity is scarce and planning permission for greenfield projects is
still slow, despite promises by the government to simplify the procedure.
Earlier, the head of the Italian arm of Germany's E.On AG (EON), Luca Alippi,
refused to rule out participation in the auctions. Originally, E.On had
decided not to bid.
Separately, Bortolotti called on Italian regulatory authorities to change
legislation that allows power consumers the freedom to cancel supply
contracts at six months' notice. He noted that in such an environment, it
will be difficult for independent power producers to secure financing for new
projects.
"You can't finance a project on trust," Bortolotti told Dow Jones Newswires.
He explained that whereas this measure was necessary at the start of
deregulation in order to allow customers to get out of disadvantageous
contracts, now it is working against the interests of consumers.
"If we can't sign (power purchasing agreement) contracts, then in the long
term, they won't be able to find a counterparty" to compete with incumbent
suppliers, he said.
-By Geoffrey T. Smith, Dow Jones Newswires; +44 7771 513 797;
geoffrey.smith@dowjones.com

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

USA: Enron and Saks ink energy management deal.

04/02/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, April 2 (Reuters) - Enron Corp. , North America's largest buyer and
seller of electricity and natural gas, said Monday its energy services unit
signed a long-term energy management agreement for all of upscale retailer
Saks Inc.'s facilities.
"By outsourcing the management of its electricity and natural gas supply to
Enron, Saks is significantly protected from energy price uncertainty and
volatility, particularly in California and New York," said David Delainey,
chairman and chief executive of Enron Energy Services.
Financial terms were not disclosed.
Under the agreement, Enron Energy Services will supply all of Saks' store
locations, which total over 300, its distribution facilities, and
administrative offices with electricity and natural gas.
The companies are also working to identify ways to save Saks money through
energy efficiency.
Although no time frame was given, a spokeswoman for Enron said that contracts
typically run between 5 and 10 years.
To date, Enron Energy Services manages energy at more than 28,500 customer
sites.
In an effort to cut energy costs and boost profits, a host of companies,
which include drug maker Eli Lilli and Co. , the North American arm of
British glassmaker Pilkington Plc , one of the world's largest glass and
plastics makers Owens-Illinois , and cereal and sports beverages maker Quaker
Oats Co. , have recently handed their energy management over to Enron.
Shares of Enron were up 45 cents at $58.55 while shares of Saks were up 25
cents to $13.25 in midmorning trade on the New York Stock Exchange.

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

Kiodex To Provide Risk-Management System For EnronOnline

04/02/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- Kiodex Inc. said it signed a deal with EnronOnline to
market its risk-management software on Enron Corp.'s (ENE) proprietary
Internet exchange for energy products.
Financial terms of the agreement weren't disclosed, company executives said
Monday.
The deal allows Kiodex to position itself this year in a second key online
marketplace for energy products. It also will provide the risk-management
technology on eNymex when the New York Mercantile Exchange launches its
electronic platform sometime in the second quarter.
The EnronOnline deal gives Kiodex significant exposure in the energy sector.
More than 1,200 companies trade with Enron on the proprietary exchange.
"Those 1,200 companies are crude, gas or refined products, so we were
specifically targeting them," said Raj Mahajan, Kiodex president. "There's no
better way to reach that market than through EOL."
Since Enron launched EnronOnline in November 1999, it has been a principal in
more than 800,000 trades valued in excess of $485 billion. More than 1,600
products are traded daily on the Web-based exchange, including energy,
metals, bandwidth, pulp and paper, weather derivatives and plastics.
Kiodex plans to expand its risk-management services from energy trading and
other commodities markets to foreign exchange and fixed income.
"Our strategy is to be the risk hub, to gather into the Risk Workbench all
trades done, whether they're over-the-counter or on an exchange," said Kiodex
Chief Executive R. Martin Chavez.
The Kiodex Risk Workbench will be available through EnronOnline in the second
half of 2001. Trades executed on EnronOnline can be automatically fed into
the Kiodex system for analysis, eliminating repetitious data entry.
The software lets traders calculate a basic set of risk-management reports
for all their EnronOnline transactions in crude oil, refined products and
natural gas. Additional Kiodex risk-management services will be available on
a subscriber basis.
Kiodex provides pricing tools, market data and financial reports to assist
companies in managing their exposure to market volatility.
-By Stephen Parker, Dow Jones Newswires; 201-938-4426;
stephen.parker@dowjones.com

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

Kiodex, Inc. To Market Risk Workbench Via EnronOnline

04/02/2001
Business Wire
(Copyright (c) 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--April 2, 2001--Kiodex, Inc., a provider of
web-based risk management and trading systems, today announced the signing of
a definitive agreement to market the Kiodex Risk Workbench(SM) in conjunction
with EnronOnline.
Under the terms of the agreement, EnronOnline customers will be able to
calculate a basic set of risk management reports for all of their EnronOnline
transactions in natural gas, crude oil and refined petroleum products. The
reports will be generated by Kiodex's flagship software application, the
Kiodex Risk Workbench(SM), and provided at no cost to the EnronOnline user.
Customers requiring additional functionality from the Kiodex Risk
Workbench(SM) will be able to access its features directly through a paid
subscription to Kiodex.
Accessed via the internet, the Kiodex Risk Workbench(SM) is a risk-management
system that provides pricing tools, market data, and financial reports to
assist corporations in managing their exposure to market volatility and in
complying with Financial Accounting Standards Board(FASB) Statement 133.
Reports generated by the Kiodex Risk Workbench(SM) will be available through
EnronOnline in the second half of 2001. Trades executed on EnronOnline can be
automatically fed into the Kiodex Risk Workbench(SM) for analysis,
eliminating the need for manual deal entry.
"Kiodex and Enron share the goal of bringing market-leading risk management,
transparency, and liquidity to existing and developing commodities markets,"
stated R. Martin Chavez, Kiodex CEO. "The placement of our risk services on
EnronOnline, the world's most successful B2B marketplace, brings simple and
cost-effective straight-through processing and best risk practices to
thousands of corporations worldwide."
Since its launch in November of 1999, EnronOnline has been a principal in
over 800,000 transactions valued in excess of $485 billion. Over 1,600
products are traded daily on EnronOnline in markets such as natural gas,
crude oil, refined petroleum products, metals, electricity, bandwidth, coal,
pulp and paper, weather derivatives and plastics.
"Enron looks forward to providing EnronOnline customers access to Kiodex's
Risk Workbench(SM)," said Andy Zipper, vice president for EnronOnline.
"Providing liquidity, price transparency and risk management in commodity
markets is the hallmark of EnronOnline and this agreement furthers that
goal."

About Kiodex, Inc.

Kiodex, Inc. is a technology and services company that provides risk
management and trading expertise to all commodity market participants through
easily accessible web-based products. Kiodex's cost-effective and
sophisticated risk management tools enable traders, managers, and corporate
officers to easily and accurately understand, quantify and manage their
risks.
The company's flagship product, the Kiodex Risk Workbench(SM), is integrated
into the world's leading commodity transaction platforms, increasing the
transparency of those markets by making risk management tools easily
accessible. In September of 2000, Kiodex was selected from over 50 competing
vendors to develop the order-matching engine for the New York Mercantile
Exchange's new electronic trading platform, enymex(SM). For more information,
please visit www.kiodex.com.

CONTACT: Kiodex, Inc. Greg Henderson, 646/437-3815 greg.henderson@kiodex.com
URL: www.kiodex.com
10:31 EDT APRIL 2, 2001

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

Enron In Private Energy Supply Pact With Saks >ENE SKS

04/02/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Enron Corp.'s (ENE) Enron Energy Services unit agreed
to manage the supply of electricity and natural gas to all of Saks Inc.'s
(SKS) store locations, distribution facilities, and administrative offices in
39 states.
Financial terms of the "long-term" contract weren't disclosed.
In a press release Monday, the companies said they are also working together
to identify energy efficiency projects that will provide additional economic
value to Saks.
Saks added that by outsourcing the management of its electricity and natural
gas supply to Enron, it is "significantly protected from energy price
uncertainty and volatility, particularly in California and New York."
Enron's Web site is http://www.enron.com.

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

Business
Maverick of the Morning
Rhonda Schaffler, Brett Gallagher

04/02/2001
CNNfn: Market Coverage - Morning
(c) Copyright Federal Document Clearing House. All Rights Reserved.

RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: Surging energy prices helped
ExxonMobil (URL: http://www.exxon.mobil.com/) top the annual "Fortune 500"
list of the largest American companies. Exxon moved up two places, from
number three last year to number one this time around. Other energy companies
fared well in 2000 also. Enron (URL: http://.www.enron.com/) jumped from 18,
to seven, and Duke Energy (URL: http://www.duke-energy.com/) shot up to 17th,
from 69th.
But while the latest energy crisis may be good for businesses, it is not good
for consumers. Energy Secretary Spencer Abraham recently characterized the
current shortage as the most serious in 30 years. Gas prices, electricity and
home heating prices are all on the rise. And consumers are desperately
looking for some ways to save money. KeySpan (URL:
http://www.keyspanenergy.com/) is hoping its on-line site will help consumers
do just that. Myhomekey.com is offering homeowners and renters an on-line
service to help reduce their energy costs. Robert Catell is chairman and CEO
of KeySpan.
Bob, thanks for joining us.
ROBERT CATELL, CHMN. & CEO, KEYSPAN: Good morning, nice to be here this
morning.
SCHAFFLER: This certainly was timely of you to come up with this on-line
expertise, I guess we should call it.
CATELL: Well, energy and energy costs, it`s on everybody`s minds these days.
And Myhomekey.com can help people reduce their energy costs.
SCHAFFLER: OK, so how does this work?
CATELL: Well, it`s a very simple system. It`s - KeySpan, which is a large
energy company here in the Northeast, has developed Myhomekey.com, which is
an Internet-based home energy management business. And people, by inputting
information on their home, can learn about their energy usage, and more
important, they can learn how to reduce their energy usage.
BRETT GALLAGHER, GUEST HOST, MARKET CALL: Bob, how - in the day of Internet
models where people often joke that it`s a great idea but how do you make any
money on it? I guess the question is how will KeySpan make money on this? or
is it just a service?
CATELL: Well, KeySpan has a representation for providing services to our
customers. And as part of our strategy, we have an Internet-based strategy,
Myhomekey.com is one part of that strategy. And by offering products and
services to customers through KeySpan, we can sell those products and
services, have our customers have easier access to the company and to these
important products and services.
SCHAFFLER: What is the one obvious way to save energy that people might
overlook, that they find out by going to the site?
CATELL: Well, one of the easiest things people can do is kind of lower their
thermostats in the winter time, or shut off their air-conditioners in the
summer time. But by going to the site, they can find out the energy uses of
all of their appliances, can look for more efficient appliances, and can even
schedule to purchase, and the installation of that appliance right on the
site.
GALLAGHER: What sort of range and prices do these products and services
encompass? are they cheap fixes? or are we talking about full reinstallations
of furnaces?
CATELL: Well, it varies, actually, the site itself is free. The customer can
go in there and sign on. And if they`re registered, they can go right into
the site, or register, it doesn`t cost them anything. But the services that
they can get on the site go from converting their house from oil to gas,
which is something of interest to KeySpan, or buying a refrigerator, buying
an air-conditioning unit. So it really varies.
SCHAFFLER: You know, when we`ve got an energy crisis, it benefits energy
companies. But how concerned over all are you about the big picture out there
as far as what`s going on in California and oil prices?
CATELL: Well, KeySpan being a very large energy company here in the Northeast
is obviously concerned about the overall picture. We want to be sure that
customers have enough energy. We also want to be sure that customers use
energy efficiently, they conserve so that we obviously have enough energy to
maintain our quality of life, and to develop businesses here in the area.
SCHAFFLER: Robert Catell of KeySpan, thanks so much for joining us,
appreciate it.
CATELL: Thank you, a pleasure

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

Exxon Mobil Replaces General Motors Atop Fortune 500 (Update1)
2001-04-01 21:40 (New York)

     (Adds that citation is from Fortune.com Web site)

     New York, April 1 (Bloomberg) -- Exxon Mobil Corp. topped the
new Fortune 500 ranking of the biggest U.S. companies, replacing
General Motors Corp., as higher oil prices contributed to $210.4
billion in revenue last year.
     GM fell to third, behind Wal-Mart Stores Inc., Fortune said
on its Fortune.com Web site. In the list's 55-year history, only
GM and Exxon have been No. 1. Energy companies fared well this
year, with Enron Corp. moving to No. 7 from 18th and Duke Energy
Corp. going to No. 17 from 69.
     Wal-Mart had $193.3 billion in revenue, about $8.7 billion
more than GM, Fortune said. The retailer employs 1.2 million
people, more than any other company on the list. Ford Motor Co.
was fourth and General Electric Co. fifth.
     Rounding out the top 10 were financial services provider
Citigroup Inc., computer maker International Business Machines
Corp. and telecommunications companies AT&T Corp. and Verizon
Communications Inc.
     The high oil and natural-gas prices that helped energy
companies hurt other industries, Fortune said. Five of the top 15
made less money than in 1999, and profits rose 8.4 percent, less
than previous year's 29 percent increase, Fortune said.
     California and New York led all states among the listed
companies with 55 headquarters each. Texas is home to 45 companies
on the list, while Illinois has 39 and Ohio has 20. Forty of the
companies are based in New York City, twice as many as in Houston,
the No. 2 city.

(Fortune.com 4-1)

See {FRTN <GO>} for Fortune's Web site.

Arizona Lacks Natural Gas Pipeline Capacity, Paper Reports
2001-04-02 14:29 (New York)

     Phoenix, Arizona, April 2 (Bloomberg) -- Arizona is facing a
capacity shortage in the pipelines that deliver natural gas to
electricity generators, fueling concern about high prices and
power shortages this summer, the Arizona Republic reported.
     El Paso Corp.'s El Paso Natural Gas Co. and Enron Corp.'s
Transwestern Pipeline, which deliver the bulk of the state's
natural gas, said they had plenty of capacity a year ago though
are now running full, the paper said. The state, which has no
developed wells, relies on pipelines to bring in natural gas from
Colorado, New Mexico and Texas, the paper said.
     The companies attribute growing demand for gas to colder
weather and a growing reliance on natural gas to generate
electricity, the paper said. There are 20 new power plants
proposed for the state and all will be fired by natural gas, the
paper said.
     Arizona will need more than 3 billion cubic feet of
additional capacity to build all the plants and another
3.5 billion to supply plants proposed for California, which draws
its natural gas from the same pipelines as Arizona, the paper
said. That would require doubling the present pipelines running
through Arizona, the paper said.

(Arizona Republic 4-2)

For the Web site of the Arizona Republic, see {AZNA <GO>}.


My dear Rajan,

     Sat Sri Akal. We are pleased to send you our best wishes for Diwali. May
God brings shining lights for you and Your fiancee in this new year and  show
you ever shining  paths in the year which is beginnning to-day . May Almighty
bestows on you very long ,happy and very cheerful life which is full of  new
excitments and fulfil your  desires and you achieve aims of your life. Our
blessings to you for the high ideals you have always cherished.

          Please keep us informed about the latest developments if any.

       With lot of love from us.
Yours ever,

JAGJIT SINGH & GIAN KAUR


Sharon/Carol:

Jeremy Blachman called Vince Kaminski and requested a meeting to
discuss additional Research support for EES, as soon as possible.  The
participants in this meeting would be:

Jeremy Blachman
Marty Sunde
Vince Kaminski
Krishna Krishnarao

The soonest Vince and Krishna are available would be Thursday,
October 26 at the following times:

9:00 - 10:00 AM
1:00 - 3:00 PM

and Friday, October 27th:

8:30 - 10:30 AM
1:00 - 2:30 PM

Please let me know what time would be  best for Marty and Jeremy.

Thanks!

Shirley Crenshaw
3-5290


Ray,

Steve January and Lynn Blair should also be in the meeting on Monday at 3:30 pm also.  Let's plan on calling them in Steve's office in Houston (x5659)

Kent


California Power Crisis in a Nutshell: David Wilson (Update1)
Bloomberg, 01/19/01

California Averts Blackouts; Regulators Take Action (Update3)
Bloomberg, 01/19/01

Richardson Orders Natural Gas Sales Into California (Update2)
Bloomberg, 01/19/01

USA: ANALYSIS-Utilities no longer your father's Oldsmobile.
Reuters English News Service, 01/19/01

EOTT Energy Partners, L.P. Declares Quarterly Cash Distribution
PR Newswire, 01/19/01

BANDWIDTH BEAT: Number Of Routes In Price Table Explodes
Dow Jones Energy Service, 01/19/01

USA: UPDATE 1-Bush adviser opposes cap on Western power prices.
Reuters English News Service, 01/19/01

Pennsylvania PUC Blasts GPU for Comparison to California
Bloomberg, 01/19/01

Enron and Owens-Illinois Sign Long-Term $2.2 Billion Energy Management
Agreement
PR Newswire, 01/19/01

USA: Enron subsidiary, Owens-Illinois in energy deal.
Reuters English News Service, 01/19/01

California Power Crisis in a Nutshell: David Wilson (Update1)
1/19/1 17:20 (New York)

California Power Crisis in a Nutshell: David Wilson (Update1)

     (Adds dollar amount of Southern California Edison's last
default and references to bond insurers, Fitch and electricity
Board; updates federal response. Commentary. David Wilson is a
columnist for Bloomberg News. Opinions expressed are his own.)

     Princeton, New Jersey, Jan. 19 (Bloomberg) -- Californians
have suffered power blackouts. The state's two largest utilities
have defaulted on debt and failed to make power payments. State
and federal officials are working on solutions. The following
guide is designed to explain what, and who, is behind it all.

                             The Issue

     California's two largest utilities must pay more for power
than they can charge under a 1996 utility-deregulation law, which
froze rates until March 2002. They have racked up more than $11.5
billion in power-related debt. Out-of-state suppliers have balked
at selling electricity and natural gas to them because of concern
that they may not get paid.
     The price of power to California utilities more than
quadrupled during 2000 amid a surge in the cost of natural gas,
which more than half the power plants in the state burn. Natural
gas rose as much as 25-fold during December.

                           The Companies

     PG&E Corp. (ticker symbol PCG): Owner of Pacific Gas &
Electric Co., California's largest utility. Its shares have lost
55 percent during the past year, and it's one of only two stocks
in the Dow Jones Utilities Average to drop during that period.
     The unit's losses on power purchases totaled $6.6 billion at
the end of last year. On Wednesday, PG&E defaulted on $43 million
of commercial paper and the utility unit defaulted on another $33
million. The unit has a $583 million power bill due on Feb. 1, and
another $2.12 billion is due by March 2.
     Edison International (EIX): Owner of Southern California
Edison Co., the state's second-largest utility. Its stock price
has fallen 67 percent in the last 12 months, making it the worst
performer among the Dow utility stocks.
     Power-buying losses at the unit totaled $4.5 billion as of
Dec. 31. The utility defaulted Tuesday on $230 million of bonds
and failed to make $366 million of payments for power. Yesterday
it defaulted on $32 million of commercial paper. Another $378
million of power payments are due this month.
     Power suppliers: Include Calpine Corp. (CPN), Duke Energy
Corp. (DUK), Dynegy Inc. (DYN), Enron Corp. (ENE), Reliant Energy
Inc. (REI), Sempra Energy (SRE), the Southern Energy Inc. (SOE)
unit of Southern Co. (SO) and Williams Cos. (WMB).
     Natural-gas suppliers: Include Coastal Corp. (CGP), Duke
Energy, the J. Aron & Co. unit of Goldman Sachs Group Inc. (GS),
Sempra Energy and Western Resources Inc. (WR).

                          The Financiers

     Banks: Bank of America Corp. (BAC) and J.P. Morgan Chase &
Co. (JPM) arranged a total of $4.2 billion in loans. They refused
Wednesday to let PG&E and Pacific Gas & Electric borrow part of a
$1 billion credit line, leading to the commercial-paper default.
     Ace Ltd. (ACL): Bermuda-based insurance company. A unit has
about $14 million of reinsurance on the two utilities' bonds and
about $125 million in debt assumed in credit-default swaps, which
protect bondholders against defaults. ``Ace believes that any loss
would be substantially less,'' it said in a statement.
     Bond insurers: MBIA Inc. (MBI), the largest U.S. bond
insurer, guaranteed more than $1 billion of Edison's and PG&E's
bonds. Ambac Financial Group Inc. (ABK) said its exposure totals
about $150 million. Smaller amounts are at risk for Financial
Security Assurance Co. and Financial Guaranty Insurance Co.

                        The Rating Services

     Standard & Poor's: Said Dec. 13 that it might cut ``A''
ratings on the parent companies and ``A+'' ratings on the units.
Downgraded them to ``BBB-,'' its lowest investment-grade rating,
on Jan. 4. Lowered them to ``CC'' on Tuesday except for Southern
California Edison, cut to ``D'' because of its default. S&P may
also reduce ratings even more.
     Moody's Investors Service: Said Dec. 11 that it may lower
``A3'' ratings on PG&E and Edison, along with ``A2'' ratings on
their utility units. Downgraded them all to ``Baa3,'' its lowest
investment-grade rating, on Jan. 5. Lowered ratings on the parent
companies to ``Caa3'' and their units to ``Caa2'' earlier this
week. All may be cut further.
     Fitch IBCA: Said Nov. 7 that it might cut ``A'' and ``A+''
ratings on senior unsecured debt of Edison and its utility unit.
and its ``A'' rating on Pacific Gas & Electric's first mortgage
bonds. Downgraded Edison and its unit to ``A-'' on Dec. 11, to
``CCC'' on Jan. 4, and to ``CC'' on Tuesday. Cut the mortgage
bonds to ``A-'' on Dec. 11 and to ``B-'' on Jan. 4.

                           The Agencies

     California Department of Water Resources: Administers the
state's water systems. Started buying power on behalf of the two
utilities in January. Can spend as much as $400 million on power
under a bill passed yesterday.
     California Independent System Operator: Owns the system that
delivers three-quarters of the state's electricity. Imposes power
emergencies as needed.
     California Power Exchange: Buys power for utilities.
Suspended the two utilities' trading privileges after Southern
California Edison failed to make a $215 million payment and PG&E
failed to meet a new requirement that it post collateral.
     California Electricity Oversight Board: Five-member state
panel that governs both the Independent System Operator and the
Power Exchange.
     California Public Utilities Commission: Regulates utilities.
Granted rate increases averaging 10 percent to the two utilities
on Jan. 4. The increases are effective for 90 days. PG&E and
Edison wanted 26 percent and 30 percent, respectively.
     Federal Energy Regulatory Commission: U.S. agency that
oversees utilities. Issued rules Dec. 15 that freed California
utilities from a requirement to buy power through the exchange.
Has rejected proposals for caps on the power prices they pay.

                          The Background

     Power supplies are so tight that California can have an
emergency even if only a few plants go off line for repairs or
malfunction. Even ocean swells can result in production cuts, as
they can clog plants' coolant intakes with sea kelp.
     About two-thirds of California's power plants are more than
30 years old. The last major plant was built more than a decade
ago, before the state toughened its emissions standards. Demand,
especially from companies making products such as computers and
semiconductors, has grown along with the state's economy.

                          The Emergencies

     Stage One: Power reserves for hydroelectric plants fall to
within 5 percent of demand, and reserves for all other types of
plants fall to within 7 percent of demand.
     Stage Two: Power reserves from all types of plants fall to
within 5 percent of demand.
     Stage Three: Power reserves fall to within 1.5 percent of
demand. Can lead to rolling blackouts in parts of the state. The
first alert of this type happened on Dec. 7; the first blackouts
happened Wednesday.

                        The State Response

     Davis declared a state of emergency Wednesday, freeing the
Department of Water Resources to spend money in its budget and the
state's general fund to buy power on the utilities' behalf.
California's legislature then approved $400 million in outlays.
     Legislators are working on a bill, proposed by Davis, that
would let the state buy as much as $3.5 billion of power a year
under multiyear contracts and sell it to utilities at cost. The
plan sets a price of $55 a megawatt hour, below the utilities'
average selling price of $72 after the rate increase. Davis has
held talks with power generators about the length and price of
contracts; he hasn't reached any agreements yet.
     Additionally, legislators have discussed allowing Pacific Gas
& Electric and Southern California Edison to refinance the power-
purchase debt by selling bonds.

                       The Federal Response

     Energy Secretary Bill Richardson issued an order Dec. 14 that
required power suppliers to sell electricity in California. The
order was extended Jan. 11 and Wednesday, and is scheduled to
expire next Tuesday. Richardson, who leaves office tomorrow with
President Bill Clinton, signed a similar order for natural-gas
suppliers that Davis had requested.

                            The Outcome

     Very much in doubt. Duke Energy, Dynegy, Reliant Energy and
Southern Energy were prepared to force the two utilities to file
for bankruptcy before the emergency spending bill was set into
motion, Davis said.

--David Wilson in the Princeton newsroom (609) 279-4085 or
dwilson@bloomberg.net/jmg

California Averts Blackouts; Regulators Take Action (Update3)
1/19/1 16:29 (New York)

California Averts Blackouts; Regulators Take Action (Update3)

     (Adds details on gasoline supplies starting in fourth
paragraph. For a special report on the California energy crisis,
see {EXTRA <GO>})

     Sacramento, California, Jan. 19 (Bloomberg) -- California
averted a third straight morning of intermittent power blackouts
as state and federal officials moved to ensure a steady supply of
power to consumers and businesses.
     Facing less power demand as the weekend approaches, state
authorities said they haven't ordered further outages today. The
California Independent System Operator, which runs three-quarters
of the state's power grid, kept its highest power alert in place.
     State regulators blocked California's two largest utilities
from taking action on their own to cut services to customers. The
measure by the California Public Utilities Commission came after
state lawmakers yesterday approved $400 million to buy power for
the cash-strapped utilities.
     U.S. Energy Secretary Bill Richardson, who steps down
tomorrow, said today he will sign an emergency order requiring
natural-gas producers to sell in California.
     The utilities, PG&E Corp.'s Pacific Gas & Electric and Edison
International's Southern California Edison, are on the verge of
bankruptcy. A 1996 deregulation law caps rates they can charge
consumers, and they have to pay more to power generators because
of rising demand and short supplies.

                          How Many Days?

     The legislation passed yesterday doesn't address PG&E and
Edison's mounting debts, which total more than $11.5 billion. The
money may not last as long the 12 days that state legislators had
hoped, either, analysts said.
     ``With prices going the way they are in the wholesale market,
$400 million or $500 million is not going to last much more than
seven days, let alone 12,'' said Paul Patterson, a utility analyst
with Credit Suisse First Boston.
     PG&E's shares rose 44 cents to $10.19 and Edison's declined 6
cents to $8.94. The stocks are the two worst performers in the Dow
Jones Utilities Average during the past year.
     Fuel supplies are also an issue. Valero Energy Corp., which
produces 10 percent of the state's gasoline, said the state may
soon face shortages of gasoline because Kinder Morgan Inc.'s
California pipeline -- one of the West Coast's largest -- was
disrupted by blackouts.
     Jay McKeeman, executive vice president of the California
Independent Oil Marketers Association, said he wrote Davis
yesterday to warn that refineries could be forced to shut unless
they can be assured their usual flow of fuel.

                     `Interruptible' Customers

     The pipeline, which distributes almost 1 million barrels of
gasoline, jet fuel and diesel a day, has been shut for 12 hours to
18 hours a day since Wednesday, said Larry Pierce, a Kinder Morgan
spokesman. The pipeline ran last night and was idled again this
morning, he said.
     Kinder Morgan's pipeline is an ``interruptible'' customer,
making it among the first to lose power amid shortages. Even if
scattered blackouts are avoided today, customers like it still
face the possibility of power cuts.
     The state's utilities are paying as much as 20 times more for
electricity than they did a year ago as they face the effects of
deregulation, which led them to sell generating plants. High
demand, a shortage of available plants and unusually low output
from hydroelectric dams are compounding the problem.
     Pacific Gas & Electric has said six companies, accounting for
36 percent of daily natural-gas supply, may stop deliveries by
Tuesday. The utility said it has only been able to buy 60 percent
of the gas it needs for each day next month, possibly forcing it
to cut supplies to power plants that use the gas to produce
electricity.

                        `Least Bad Option'

     President-elect George W. Bush opposes one possible remedy
for the utilities: limits on the wholesale prices that they pay
for electricity.
     ``The president-elect does not think price controls are an
answer to our nation's energy problems,'' Ari Fleischer, Bush's
spokesman, said during a reporters' conference call. ``He sees
very little evidence that price controls work. That is a very
unlikely solution in his opinion.''
     The Federal Energy Regulatory Commission, which oversees
utilities, has turned down proposals for price caps. California
Governor Gray Davis and other state officials support caps. U.S.
Senator Dianne Feinstein plans to introduce a bill Monday that
would allow the U.S. Secretary of Energy to impose them. Both
Davis and Feinstein are Democrats.
     State legislators rushed their spending measure into law
after Davis declared a state of emergency Wednesday. The state's
four largest power providers had threatened to push Pacific Gas &
Electric and Southern California Edison into bankruptcy if the
bill wasn't passed.
     ``This bill is the least bad option to get us through the
next few days,'' said Assemblyman Fred Keeley, the state's No. 2
Democrat. ``It will hopefully give us time to put a comprehensive
solution in place.''

                           More Defaults

     The legislature is also drafting a separate bill that would
allow the state to buy power under multiyear contracts and limit
the price it pays at $55 a megawatt hour. Customers currently pay
about $72 on average.
     While many generators are balking at that proposal, Davis
said he believed producers will eventually accept prices close to
$55, especially if the state agrees to sealed bids for contracts.
     Southern California Edison defaulted on $32 million of
commercial paper yesterday. It expects to default on $223 million
more of the money-market securities by Jan. 31, according to a
Securities and Exchange Commission filing.
     The utility also forfeited millions of dollars in power
contracts to the California Power Exchange yesterday after it
failed to make a $215 million payment. The foreclosure was a first
for the exchange, which buys power from generators on behalf of
utilities.
     Earlier this week, Edison suspended $596 million in payment
to bondholders and utilities. In addition, PG&E defaulted on $76
million in commercial paper.

--Peter Robison in Seattle (206) 406-1656 or robison@bloomerg.net
and David Ward in Sacramento with reporting by Daniel Taub in San
Francisco, Dennis Walters in Ojai, California, David Evans in Los
Angeles, Christopher Martin in Chicago, Jonathan Berr, Stacie
Babula and Jim Polson in Princeton, Liz Goldenberg in New York,
and Liz Skinner in Washington through the Princeton newsroom (609)
279-4000 / dw

Richardson Orders Natural Gas Sales Into California (Update2)
1/19/1 17:40 (New York)

Richardson Orders Natural Gas Sales Into California (Update2)

     (Adds Richardson comment in fourth paragraph, details of
order in fifth through eighth.)

     Washington, Jan. 19 (Bloomberg) -- U.S. Energy Secretary Bill
Richardson ordered natural-gas suppliers to keep selling to
California to keep homes warm and hospitals running after two days
of rolling blackouts.
     California Governor Gray Davis asked for the emergency order
because suppliers are threatening to stop shipments to PG&E
Corp.'s Pacific Gas & Electric, fearing the state's largest
utility will default on payments.
     Utilities owned by PG&E and Edison International have said
they face bankruptcy because state laws won't let them pass on the
soaring power costs to customers. Pacific Gas & Electric said a
cut in gas supplies would affect homes, hospitals, businesses, oil
refineries and power plants.
     ``I am very concerned that such supply disruptions could
endanger the health and welfare of PG&E's residential and
commercial gas customers and could exacerbate the already
precarious condition of California's electric grid,'' Richardson
said in a statement issued on his last day in office.

                         Setting Terms

     The emergency order, requiring any of PG&E's natural gas
suppliers to keep selling to the utility according to contracts in
place the past 30 days, will keep gas flowing as California,
utilities and generators ``work to find a solution to the current
electricity and financial crisis,'' Richardson said.
     If a supplier and PG&E don't agree on the terms of the
contracts, the energy secretary will set the terms, the department
said in a statement.
     The federal order runs through Tuesday. It will be up to the
next energy secretary whether to extend it. Richardson said he has
spoken with Spencer Abraham, who President-elect George W. Bush
has nominated to head the department, about the crisis.
     President Bill Clinton earlier today signed a memorandum
finding that a natural-gas supply emergency exists in central and
northern California. The document directs Richardson to ensure
that gas is available for high-priority uses, such as home heating
and power generation.
     Last month, Richardson ordered power generators to sell
electricity to California after suppliers in the Northwest halted
sales. That order also expires Tuesday.
     PG&E shares rose 44 cents to $10.19. Edison fell 6 cents to
$8.94. They've both fallen about 63 percent since Nov. 1.

                         Gas Supplies

     Pacific Gas & Electric said six natural-gas suppliers,
accounting for 36 percent of its daily supply, told the utility
they have stopped delivering gas or may stop deliveries by
Tuesday. Other suppliers, accounting for 30 percent of daily
supplies, are considering stopping deliveries, the utility said.
     One of PG&E's gas suppliers, Western Gas Resources Inc.,
stopped deliveries on Jan. 12. The company ended a contract to
sell 5 million cubic feet of natural gas a day after the utility
``stopped paying us according to the terms of the contract,'' said
Ron Wirth, Western Gas spokesman.
     Wirth said company officials haven't seen Richardson's order
yet so couldn't comment on it.
     El Paso Energy Corp., which sells natural gas to PG&E through
its merchant energy unit, said it has been honoring its existing
contracts with the California utility.
     ``We are still backing the existing contracts to those
companies, as of this moment,'' said spokeswoman Kim Wallace.
``This is a minute-to-minute situation.''
     The order will impact El Paso Energy because it sells natural
gas into California, she said. ``The question is who will pay?''

--Liz Skinner in Washington, (202) 624-1831 or
lskinner@bloomberg.net and Daniel Taub in San Francisco, with
reporting by Jim Kennett in Houston and Bradley Keoun in New York,
through the Princeton newsroom, (609) 279-4000/pjm/shf

USA: ANALYSIS-Utilities no longer your father's Oldsmobile.
By Paul Thomasch and Jonathan Stempel

01/19/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Jan 19 (Reuters) - Fund manager Don Cox left a meeting with Exxon
Mobil executives last September shaking his head, knowing he would stay as
far away as possible from California utilities.
During the meeting in downtown Chicago, four executives from Exxon Mobil
Corp., the world's No. 1 energy company, told Cox to expect natural gas
prices to fall to just $1 per million British thermal units (mmbtu).
His conclusion? Even the industry's top brass couldn't see the coming power
crisis, one that would hit California's utilities particularly hard.
"I walked away from that meeting telling my clients to load themselves to the
hilt with natural gas stock and don't get involved with the California
utilities," said Cox, chairman and chief strategist at the Harris Investment
Management Fund, which manages $16 billion.
It was the right call.
Natural gas hit $10 per mmbtu three months later, the last in a chain of
events that sent power prices through the roof and sent California's
deregulated electricity market to the brink of collapse.
Now, Pacific Gas and Electric Co., a unit of San Francisco-based PG&E Corp.
and Southern California Edison, a unit of Rosemead, Calif.-based Edison
International, are flirting with bankruptcy, stock-and bondholders have seen
billions of dollars melt away, and Wall Street has been forced to reassess
utilities as an investment.
"This is going to once and for all eliminate the idea that utilities are a
homogenous industry," said Cox. "This is a group that cries out for a whole
new sort of analysis."
SAFE NO MORE
For decades, utilities have been seen as a safe haven for stockholders.
Returns weren't the stuff of dreams, but there was little risk of losing your
shirt.
Electricity deregulation, sometimes successful and in California clearly not,
has changed that notion. Layers upon layers of power companies have been
created, from such power marketers as Enron Corp. and generators as Dynegy
Inc., to distribution utilities such as New York City's Consolidated Edison
Inc..
"The industry has been in a revolution for a couple of years," said Tim
Ghriskey, a portfolio manager for the $2.2 billion Dreyfus Fund. "It's a much
more dynamic industry. It's not just buy one, buy all, because they are all
different."
Utilities stocks were highly rewarding to investors last year, with the
Standard & Poor's utilities index surging more than 50 percent.
California's power crisis has changed that landscape, though. Share prices of
PG&E and Edison have slid more than 60 percent since early November, and
dragged down others with them. About 15 percent of the value of the S&P
utilities index has been wiped out so far this year.
"Unlike the old utilities, nowadays you can make a lot or lose a lot in a
hurry," said Ghriskey.
UTILITIES LOSE GLEAM
It's not just shareholders who have learned the hard lesson that utilities
aren't what they once were. Bondholders, too, have been left to wince as top
credit rating agencies slashed their formerly investment-grade holdings deep
into junk.
Still, secured and unsecured bondholders may be in better shape than
stockholders, ranking ahead of them in the pecking order when it comes time
to decide what gets distributed in a bankruptcy, if there is one - or two.
"The sharing of the pain is the one uncertainty from an investor's
standpoint," said James Spiotto, a partner and default specialist at Chapman
and Cutler, a Chicago law firm.
"The solution of a utility bankruptcy is not unlimited pain to the customer
because there's a limit to what the customer can bear."
Investors see bids for SoCal Edison's and Pacific G&E's first mortgage bonds
at around 80 to 82 cents on the dollar, and for their unsecured bonds at 45
to 50 cents on the dollar. That compares to the pennies bid for bonds of many
asset-poor start-up telecommunications companies.
Bill Gross, who oversees $250 billion for Pacific Investment Management Co.
in Newport Beach, Calif. and is widely considered the most powerful U.S. bond
fund manager, reckons utilities look more and more like some of those
telecoms.
"Obviously investors are now awakening to the fact that utilities are not the
safe, conservative vehicles that they knew 10 or 20 years ago," he said.
"It's not your father's Oldsmobile."
Selling now, however, may not be a good solution because the crisis is fluid,
some depressed prices could recover, and the market for electric power won't
disappear the way some telecoms and dot-coms do.
"Generally, the solution for a distressed utility is strung out, and can
involve a conversion of debt to equity," said Spiotto. "The real concern is
to save the system."
First mortgage bondholders, he said, usually do well in a bankruptcy, and
could get their principal back, because they have "the system" as collateral.
No one, he said, will allow California's lights to dim for good.
CLOUDED BY UNCERTAINTY
What occurred in California is something of a perfect storm, a situation
brought together by a poorly constructed deregulation plan, environmental
hurdles, cold weather and a shortage of natural gas production in the United
States.
PG&E and Edison may indeed go under, investors said, or the nation's richest
state could construct a way to bail them out.
Either way, stockholders are decidedly unwilling to risk too much of their
money on PG&E or Edison at the moment.
"It's too uncertain right now; the situation makes us too nervous," said
Ghriskey, who doesn't own either utility's shares. "At some point there could
be a huge buying opportunity, but first we have to get some visibility on an
outcome."
The crisis also casts doubt over companies such as Reliant Energy Inc., Duke
Energy Corp., and Southern Energy Inc., which face hundreds of millions of
dollars of credit exposure because they sell power to the utilities.
What's more, it throws a cloud over how deregulation will progress elsewhere
in the country.
"I think we're locked into several years of energy problems," said Cox of
Harris Investment Management.
Like his counterparts in the bond market, he sees a parallel with those "new
economy" companies. "From now on, talking about utilities as a group will be
as problematic as talking about tech stocks as a group," he said.
But will the value of their securities recover?
"Hope springs eternal," said Spiotto, the Chicago lawyer.

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

EOTT Energy Partners, L.P. Declares Quarterly Cash Distribution

01/19/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

HOUSTON, Jan. 19 /PRNewswire/ -- EOTT Energy Partners, L.P. (NYSE: EOT) (the
Partnership) announced today a distribution of $0.475 per common unit for the
fourth quarter of 2000, or $1.90 on an annualized basis. The fourth quarter
distribution is payable Feb. 14, 2001, to unitholders of record as of Jan.
31, 2001.
EOTT Energy Partners, L.P. is a major independent marketer and transporter of
crude oil in North America. EOTT transports most of the lease crude oil it
purchases via pipeline which includes 8,300 miles of active intrastate and
interstate pipeline and gathering systems and a fleet of 260 owned or leased
trucks. EOTT Energy Corp., a wholly-owned subsidiary of Enron Corp. (NYSE:
ENE), is the general partner of EOTT Energy Partners, L.P. with headquarters
in Houston. The Partnership's Common Units are traded on the New York Stock
Exchange under the ticker symbol "EOT". Media Relations Contact:
Kimberly Nelson
(713) 853-3580
Investor Relations Contact:
Scott Vonderheide
(713) 853-4863

/CONTACT: media, Kimberly Nelson, 713-853-3580, or investor relations, Scott
Vonderheide, 713-853-4863, both of EOTT Energy Partners, L.P. / 15:44 EST

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

BANDWIDTH BEAT: Number Of Routes In Price Table Explodes
By Michael Rieke

01/19/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A DOW JONES NEWSWIRES COLUMN

HOUSTON -(Dow Jones)- The number of city-pairs listed in the daily Dow Jones
bandwidth price table exploded this week to 10 from two.
The table was started in September, listing only prices for DS3 bandwidth
between New York and Los Angeles. That's the route that had the most traffic
and therefore would be the first to bring some liquidity to the nascent
bandwidth market.
The table originally listed only prices for DS3 bandwidth along that route.
Later prices were added for OC3 capacity between New York and Los Angeles,
followed by prices for DS3 and OC3 bandwidth between New York and Washington,
D.C.
Earlier this month, DS3 capacity between New York and Washington had the
distinction of being the first listing dropped from the price table.
One component in the value of a deal is mileage, so the fewer the miles, the
less money in the deal. Because New York is so close to Washington, D.C.,
traders decided there wasn't enough money involved to continue trying to do
deals for DS3 bandwidth along that route. They'll only quote prices for OC3
capacity along that route.
They also decided there wasn't enough money involved in one-month deals for
OC3 capacity along that route. So now they're only making a market for
three-month deals on that route.
This week a broker told Dow Jones Newswires that a market was being quoted
for a new route: Los Angeles to San Francisco, mostly for DS3 bandwidth but
also for two one-year contracts for OC3 capacity.
The broker wouldn't say which company was the market maker for that route.
For a simple definition, a market maker is a company that will give a bid and
an offer in a market. Then it has to be willing to buy at the bid price and
sell at the offer price.
The first guess was, of course, Enron Corp. (ENE) because they've been very
aggressive in making markets in bandwidth. Just take a look at the bandwidth
bids and offers on Enron Online, if you have access.
But Enron isn't the market maker for the Los Angeles-to-San Francisco route.
They prefer the nearby Los Angeles-San Jose route and are making a market for
it in DS3 and OC3.
And it isn't El Paso Energy (EPG) either. They were the second company
venture into bandwidth as a market maker. Aquila Broadband Becomes Third
Bandwidth Market Maker

A little research revealed that Aquila Broadband Services, a unit of
Utilicorp United Inc. (UCU), is the market maker for the Los Angeles-San
Francisco route. They're the third market maker in bandwidth.
The other new routes being quoted are New York-Miami (DS3 and OC3);
Seattle-Salt Lake City (OC3); Seattle-Los Angeles (OC3); Seattle-Portland,
Ore. (OC3); Los Angeles-Las Vegas (DS3 and OC3); and Los Angeles-Dallas
(DS3).
A quick check of the bids and offers for the new markets reveals that the
quotes are wide. When making a new market, a company doesn't want to risk
making a mistake by bidding too high or offering too low. If you bid too
high, sellers will jump all over your bid. If you offer too low, buyers will
jump all over your offer
In the new markets, there's generally $0.0015-$0.0020 per DS0 mile per month
between the bid and the offer.
In the most mature market, New York-Los Angeles for DS3, the bids and offers
for some contracts are separated by only $.0001/DS0 mile/month, sometimes
even less.
In fact, another decimal place had to be added to the quotes in the price
table. Some quotes for DS3 bandwidth between New York and Los Angeles have
become so tight that the bid and offer sometimes were separated by only
$.00005/DS0 mile/month.
Traders are willing to talk about the new markets because they are hoping
they will attract more attention followed by more buyers and sellers. As
those markets become more liquid, the traders predict, the bids and offers
will move closer together.
Some carriers aren't going to like seeing quotes for more bandwidth routes.
More quotes mean more price transparency. More price transparency means more
questions from customers.
Some carriers already argue that the prices quoted in the bandwidth market
aren't "real" prices, that they are too low. If that's true, traders say, the
carriers should be buying.
At least some telecom analysts agree. Steven Kamman, an analyst for CIBC
World Markets, has already said that in this column.
The smartest course for high-cost carriers, like WorldCom (WCOM), is to stop
investing in their own networks and start buying wholesale capacity from
low-cost carriers, Kamman says.
If and when they do, the bandwidth price table should grow even bigger.
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@wsj.com

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

USA: UPDATE 1-Bush adviser opposes cap on Western power prices.

01/19/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, Jan 19 (Reuters) - A proposal to cap prices for wholesale
electricity in the West in hopes of easing California's power crisis "would
start spreading the shortage around" to other states, an adviser to the
incoming Bush administration said on Friday.
"That is not even a short-term solution," said Ken Lay, head of Enron Corp.
and an energy advisor to incoming President George W. Bush, a former Texas
oilman who takes the oath of office on Saturday.
Enron is the largest power marketer in the United States, and a cap would
limit the prices it and other wholesalers could charge to utilities.
Lay told reporters the federal government should limit itself to an advisory
role, letting California leaders resolve a "pretty much self-inflicted
problem." Wholesale power prices were deregulated under the landmark 1996 law
but retail rates were not.
A proposal by California officials to cap wholesale power prices in the West
as a way to help their state would merely "start spreading spreading the
shortage around to other states," Lay said.
California endured two days of rolling blackouts this week as two large
utilities struggled under huge debts incurred buying electricity at higher
wholesale prices than they can recoup under the retail rates they are allowed
to charge.
Outgoing U.S. Energy Secretary Bill Richardson said he would issue an
emergency order later on Friday to require out-of-state natural gas suppliers
to sell fuel to a cash-short California utility so it can continue to
generate electricity.
In the short term, Lay said, the state government will have to "buy the power
to fill the short positions of the utilities." The longer term solution will
probably include longer-running contracts to take advantage of electric
prices that are expected to fall later this year.
"The biggest problem in California is consumers are not going to see the
price signals. If they don't see the price signals, they are not changing
behavior so the problem is going to get worse," Lay said.
"Painful as it is, they need to see the price signals and start modifying
behavior to reduce demand until we get new supplies."
California Gov. Gray Davis was expected to sign a bill allowing the state to
spend $400 million to buy power on behalf of utilities. The two California
utilities, PG&E Corp's Pacific Gas & Electric Co. and Edison
International'sSouthern California Edison, have run up about $12 billion of
debt and are teetering on the edge of bankruptcy. Their bankruptcy would rank
among the nation's biggest, hitting creditors ranging from retirees invested
in traditional safe havens to institutional corporations, analysts said.
The Clinton administration has tried to help California by issuing week-long
orders that force out-of-state power generators to sell extra electricity to
the two largest California utilities.
Asked how long creditors could continue to show forbearance toward utilities
with mounting debt, Lay said Enron had moved to mitigate its exposure.
"The generators ought to speak for themselves. They're the ones that have
continued to operate plants and try to keep the lights on until the problem
is worked out," Lay said."But I'm sure it cannot be long. They have to look
out for their shareholders too."

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

Pennsylvania PUC Blasts GPU for Comparison to California
1/19/1 17:1 (New York)

    HARRISBURG, Pa., Jan. 19 /PRNewswire/ -- The chairman of the state Public
Utility Commission (PUC) this afternoon criticized GPU Energy for deliberately
alarming consumers and elected officials by suggesting the energy crisis
crippling California could easily affect Pennsylvania.
    "I am outraged that GPU would even hint that a similar energy crisis could
happen to Pennsylvania," said PUC Chairman John M. Quain.  "This appears to be
a thinly veiled attempt to influence a decision pending before the PUC.
    "I assure consumers and legislators that what is happening in California
will not happen in our state," he said.  "GPU has an economic problem, not a
supply problem."
    GPU in November petitioned the PUC for the right to collect from customers
in future years more than $82 million in projected losses from purchasing
electricity.  Under GPU's 1998 restructuring settlement, generation rates for
customers are capped through 2010 for Met-Ed customers and 2009 for Penelec
customers.  The two companies are subsidiaries of GPU.
    The PUC sharply criticized the utility for blaming their losses on
wholesale market conditions when in fact the losses result from GPU's own
business decisions.
    "The decision to divest their generation was made in their boardroom,"
said Kevin Cadden, PUC spokesman.  "The decision not to enter into long-term
power contracts with suppliers was made in their boardroom.  These decisions
were not made by the PUC."
    In recent weeks Quain has stressed that three critical factors separate
Pennsylvania from California.  They include:

    -- Pennsylvania produces more power than it consumes and therefore does
       not face an energy shortage like that in California.  The state is a
       net exporter of electricity and the second largest producer of
       electricity in the U.S.
    -- Pennsylvania did not require utilities to sell their generation plants
       as a part of restructuring as California did.  Nearly all of
       Pennsylvania's electric utilities own their own generating plants.
       GPU chose to sell all of their power plants.
    -- Pennsylvania does not prevent utilities from entering into long-term
       power contracts with suppliers.  In California, utilities are forced
       to buy electricity on the spot market, buying power at current market
       rates.  GPU chose not to enter into a sufficient number of these
       contracts.

    Cadden said GPU's request would follow standard PUC regulations.  "The
request for relief will be decided on the basis of the record and law
developed in the pending proceeding, and will not be swayed by unfounded
comparisons to California," he said.
    Pennsylvania's Electric Choice Program is widely recognized as the most
successful and best run in the country, having saved customers nearly
$2.8 billion to date in guaranteed rate cuts and savings.  More than 550,000
customers have selected an alternative electric supplier under the program.
    For more information about the PUC, visit their website at
http://puc.paonline.com.

SOURCE  Pennsylvania Public Utility Commission
    -0-                             01/19/2001
    /CONTACT:  Kevin Cadden, Communications Manager of the Pennsylvania Public
Utility Commission, 717-787-5722 or fa

Enron and Owens-Illinois Sign Long-Term $2.2 Billion Energy Management
Agreement

01/19/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

HOUSTON, Jan. 19 /PRNewswire/ -- Enron Energy Services, a subsidiary of Enron
Corp. (NYSE: ENE), and Owens-Illinois, Inc. (O-I), a leading producer of
glass and plastics packaging, announced today a ten-year energy management
agreement. The agreement covers 53 Owens-Illinois manufacturing facilities in
20 states and will cover projected energy purchases in excess of $2 billion.
Through this initial agreement, Enron will work with Owens-Illinois to manage
the supply of electricity and natural gas to O-I facilities and will continue
to look for ways to reduce O-I's aggregate demand.
"Securing affordable, reliable energy is a key element of our strategy to be
the low-cost producer in every market we serve," said Richard A. Jun, vice
president of corporate purchasing for Owens-Illinois. "This contract with
Enron effectively adds its leadership in energy purchasing management to our
ongoing commitment to cost management, an arrangement that should provide
savings and reduce our exposure to short-term energy price fluctuations."
"Our partnership with Owens-Illinois is a showcase of the depth of Enron's
continuing expansion into the industrial market," said Lou Pai, chairman and
CEO of Enron Energy Services. "Over the length of this contract, Owens-
Illinois will see the considerable competitive advantage of their existing
cost-control strategies significantly enhanced by the addition of our
expertise in energy efficiency and risk management."
Owens-Illinois is the largest manufacturer of glass containers in the United
States, North America, South America, Australia, New Zealand, and China and
one of the largest in Europe. Approximately one of every two glass containers
made worldwide is manufactured by Owens-Illinois, its international
affiliates, or its licensees. O-I also is a worldwide manufacturer of
plastics packaging with operations in North America, South America,
Australia, Europe and Asia. Plastics packaging products manufactured by O-I
include containers, closures and prescription containers.
Enron Energy Services has built a business to transform the energy
marketplace by providing integrated energy and facility management solutions.
Enron currently manages energy at over 28,500 customer sites. Contracts
signed within the last two years represent a reduction of approximately 8
billion kilowatt hours of electricity consumption and 18 million Btus of
natural gas consumption between 2000 and 2012.
Enron is one of the world's leading electricity, natural gas and
communications companies. The company, with revenues of $40 billion in 1999
and $60 billion for the first nine months of 2000, markets electricity and
natural gas, delivers physical commodities and financial and risk management
services to customers around the world, and is developing an intelligent
network platform to facilitate online business. Fortune magazine has named
Enron "America's Most Innovative Company" for five consecutive years, the top
company for "Quality of Management" and the second best company for "Employee
Talent." Enron's Internet address is www.enron.com. The stock is traded under
the ticker symbol "ENE".
Contact: Peggy Mahoney of Enron Energy Services, 713-345-7034.

/CONTACT: Peggy Mahoney of Enron Energy Services, 713-345-7034/ 17:17 EST

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

USA: Enron subsidiary, Owens-Illinois in energy deal.

01/19/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, Jan 19 (Reuters) - Enron Energy Services, a subsidiary of Enron
Corp. , said Friday it agreed to a 10-year energy management agreement with
glass container maker Owens-Illinois Inc. .
The deal, which cover 53 Owens-Illinois manufacturing facilities in 20
states, will cover projected energy purchases of more than $2 billion, the
company said.
"This contract with Enron effectively adds its leadership in energy
purchasing management to our ongoing commitment to cost management, an
arrangement that should provide savings and reduce our exposure to short-term
energy price fluctuations," Richard Jun, Owens-Illinois' vice president of
corporate purchasing, said in a statement.
Enron shares finished off 1-3/16 at $70-7/8 on the New York Stock Exchange
Friday, between a 52-week high of $90-9/16 and a 52-week low of $52-5/8.
Owens-Illinois' shares, meanwhile, closed unchanged at $6-7/8, also on the
Big Board. The company's stock has a a 52-week high of $21-11/16 and a
52-week low of $2-1/2.
Gregory Cresci, New York Newsroom (212) 859-1700.

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


Enron Broadband Services
40 Grosvenor Place
London SW1X 7EN

Phone :  0207 783 5327
Mobile :  07879 432 763

neil.tarling@enron.net

	Sally Beck@ECT
	Sent by: Patti Thompson@ECT
	10/10/00 23:58

		 To: Mike Jordan/LON/ECT@ECT, James New/LON/ECT@ECT, Mike
Wellings/LON/ECT@ECT, Coralie Evans/LON/ECT@ECT, Robert Yeo/LON/ECT@ECT, Paul
D'Arcy/LON/ECT@ECT, David A Wall/Risk Mgmt/LON/ECT@ECT, Andrew
Cornfield/LON/ECT@ECT, Cindy Horn/LON/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT,
Leslie Reeves/HOU/ECT@ECT, Bob M Hall/NA/Enron@Enron, Stacey W
White/HOU/ECT@ECT, Peggy Hedstrom/CAL/ECT@ECT, Brenda F Herod/HOU/ECT@ECT,
Brent A Price/HOU/ECT@ECT, Scott Earnest/HOU/ECT@ECT, D Todd
Hall/HOU/ECT@ECT, Sheila Glover/HOU/ECT@ECT, Kevin Sweeney/HOU/ECT@ECT,
Fernley Dyson/LON/ECT@ECT, Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Jan-Erland Bekeng/AP/Enron@Enron, Scott Mills/HOU/ECT@ECT, Barry Pearce/Enron
Communications@Enron Communications, Kristin Albrecht/Enron
Communications@Enron Communications, Wanda Curry/HOU/ECT@ECT, Meredith M
Eggleston/HOU/EES@EES, Shona Wilson/NA/Enron@Enron, Eugenio
Perez/HOU/ECT@ECT, Michael E Moscoso/HOU/ECT@ECT, Neil Tarling/Enron
Communications@Enron Communications
		 cc:
		 Subject: Global Operations Controller Forum

Please fill in the following information and email (or fax 713-345-8100) to
me as soon as possible. (The same day would be great!)

Please select dinner entr,e for Sunday, Oct 22	Pan seared medallions of Black
Angus tenderloin, or	Beef
	Grilled chicken breast w/ artichoke, mushrooms & light herb sauce
Hotel reservation:	Both Sunday and Monday nights	Yes
	Sunday night only
	Monday night only
	Extend for additional nights	Yes : Tues /Wed/Thurs
	Smoking or non-smoking room	Smoking
Flight information:	Date of arrival	22nd October
	Airline/flight number	CO 35
	Houston arrival time	13.45
Shirt size:	Women's or men's size	Mens
	small, med, large, x-large, xx-large	Large

Thanks,
Patti x39106


Knudsen, Sheila A. would like to recall the message, "Reply Requested: Do You
Code Or Approve Invoices?".


This deal has been changed to a NYMEX swap at $8.14.

Thanks,

Errol

	Enron North America Corp.

	From:  Diane Anderson                           02/09/2001 09:12 AM

To: Errol McLaughlin/Corp/Enron@ENRON
cc:

Subject: QF4314 (EOL 672213) QF4331 (EOL 672217)

Hi Errol.  Have you had any luck with these two deals?

Thanks, Diane

---------------------- Forwarded by Diane Anderson/NA/Enron on 02/09/2001
09:12 AM ---------------------------

	Enron North America Corp.

	From:  Diane Anderson                           02/07/2001 10:34 AM

To: Errol McLaughlin/Corp/Enron@ENRON, Sherry Dawson/NA/Enron@Enron
cc:

Subject: QF4314 (EOL 672213) QF4331 (EOL 672217)

Hi Errol & Sherry,

We received confirmations for the above referenced
deals from Paribas (they confirm us) and Paribas' confirm
differs from what we show in TAGG.  Paribas' trader, Herve,
says that he spoke with John Arnold after the deal was done
and changed the price from 8.15 to 8.14 and the index from
Gas Daily to NYMEX.     TAGG still reflects the terms that
EOL has.

Can one of you please find out if John Arnold agreed to these
changes, and if so, can you make the necessary changes
to TAGG?

Let me know.
Thanks a lot,
Diane
3-0443


We hope your experience with the Clickathome ordering website, vendors and
our ClickAtHome Portal has been exciting and fun for you!  We need your
feedback to determine next steps of the program.  Please take a few minutes
to fill out the Portal Survey. Your feedback is critical to the success of
this program.  Please complete the survey by clicking on the link below by
Wednesday, March 7th.

http://etcsurvey.corp.enron.com/wi/p0438770/i.asp?r=51&s=DZLPPZQZ&l=9

Thanks,

Clickathome Project Team


I know it has been a while, but I wanted to send you the follow-up on our conversation last week, to make sure I heard everything correctly.

Please let me know if the notes don't correctly reflect your memory of the conversations.

Thanks a bunch!

ab.

Andy Brady
Enron Transportation Service, IT
Work Phone - 713-853-7110
Work Fax - 713-853-6756


Send the docs to Julia.  Mark


there you go, i like being first on your list

Shanna Husser@ENRON
05/10/2000 11:12 AM
To: Eric Bass/HOU/ECT@ECT, Jason Sharp/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Michelle Thompson/HOU/EES@EES, Gary_l@deq.state.la.us,
BZ202449@msxssc.shell.com, ccampbel@tosco.com
cc:
Subject: Fwd: FW: Things to Remember

---------------------- Forwarded by Shanna Husser/Corp/Enron on 05/10/2000
11:10 AM ---------------------------

bowmanja@us.ibm.com on 05/10/2000 09:32:55 AM
To: Funnies@us.ibm.com
cc:

Subject: Fwd: FW: Things to Remember

Regards,

James A. Bowman
Global  A/P e-Business Strategy - Americas
1701North St, Endicott, NY 13760
(607) 755-5708  T/L 855-5708  FAX (607) 755-6124
bowmanja@us.ibm.com

---------------------- Forwarded by James A Bowman/Endicott/IBM on
05/10/2000 10:32 AM ---------------------------

Petra Hermstein <hermstein@yahoo.com> on 05/10/2000 10:05:28 AM

To:   Gregory-Scott Pajda <gspajda@acsu.buffalo.edu>, Lameane Riley
      <lameane@hotmail.com>, Amy VanEss <am6984@cnsvax.albany.edu>, Luella
      Badeau <labadeau@aol.com>, Jennie Bernard <jbern@loyno.edu>, James A
      Bowman/Endicott/IBM@IBMUS, Rossa Bristol/Endicott/IBM@IBMUS, Rick
      Broeders <wolvfan21@aol.com>, Sherron Brown <sherronbrown@yahoo.com>,
      Devin Caputo <dcaputo@hotmail.com>, Chana Glover
      <chanaglover@hotmail.com>, Lisa Havens <finalctr@capital.net>, Judy
      Internet <pandoraa22@aol.com>, Nicholas Kerr <accura_14@hotmail.com>,
      Christopher Kresser <cskresser@yahoo.com>, Wilfred Lopez
      <w_lopez3@hotmail.com>, Rhett Morgan <rhett@ksu.edu>
cc:   hermstein@yahoo.com
Subject:  Fwd: FW: Things to Remember

--- Robert Hermstein <rhermstein@encongroup.com>
wrote:
> From: Robert Hermstein <rhermstein@encongroup.com>
> To: "Petra Hermstein (E-mail)"
> <HERMSTEIN@YAHOO.COM>,
>         "Tom Drennan (E-mail)"
> <Skippy729@prodigy.net>
> Subject: FW: Things to Remember
> Date: Tue, 9 May 2000 16:22:09 -0400
>

Things to Remember:
We cannot see the future. We cannot change the past.
We can only live in the now with an eye towards
gaining enough power in the future to wreak revenge on
everyone who ever screwed us in the past.

Dreaming frees the soul, energizes the spirit and
allows you to do things that would get your ass thrown
in jail if you really tried them.

Love means never having to say, "Does that twenty
include the spanking?

To truly love another, you must first love yourself.
And it wouldn't kill you to wash your hands in between
either.

A little bit of love goes a long way in our lives. It
can provide us with higher highs and lower lows. But,
if it comes with a persistent burning sensation, see
your physician.

When it becomes a crime to love, you should probably
consider dating outside the family.

If Life hands you lemons today, smile and give thanks.
Then when Life isn't looking, give him a quick knee to
the groin. That'll learn him.

They say a smile is a gift which is free to the giver
and precious to the recipient. But giving the finger
is free, too, and I find it more personal and sincere.

__________________________________________________
Do You Yahoo!?
Send instant messages & get email alerts with Yahoo! Messenger.
http://im.yahoo.com/


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  , 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Option Candlesticks
http://www.carrfut.com/research/Energy1/candlesticks44.pdf

Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606  USA
Tel:  312-368-6149
Fax:  312-368-2281
soblander@carrfut.com
http://www.carrfut.com


Here's the final Feb. file.

Let me know if you need anything else.
Robin

Kathy Reeves
03/06/2001 03:43 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: Re: Canada P&L YTD

Robin, Would you be able to send me the file for Feb 28th.
Kathy

Robin Rodrigue
03/05/2001 10:12 AM
To: Kathy Reeves/CAL/ECT@ECT
cc:
Subject: Re: Canada P&L YTD

Here you go.  This is the P&L we reported as of 3/2/01.

Let me know if you have any questions.
Robin

Kathy Reeves
03/02/2001 11:17 AM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: Canada P&L YTD

Robin,
Could you please send me Canada's p&L that you are reporting.  The same file
that you sent last month is fine.  This is what our income should be.
Kathy


can you send it through lavo.  he's suppose to pay for it.
thanks,
john

Liz M Taylor
02/09/2001 09:16 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: Super Bowl

Hi Johnnie,

I think you may have encrypted your reply about the reimbursement of the air
fare from the Super Bowl.  I was unable to read your response.  Please send
again.

Liz


call me when you get out of your morning meeting


Hi Tana,

Thanks for looking at this.

 I believe the Contact at Barclays is Leigh Preston- Whyte, Whos address is:

Barclays Capital (Legal Division)
5 The North Colannade
Canary Wharf
London E14 4BB
Tel +44 020 7623 2323

I will confirm that Leigh is able to arrange for execution and will let you
know.

I look forward to hearing from you,

Matt Dawson


Brandon-  I talked to the Human Resource rep. They told me if the head of gas
control can find something for you to do we could
 bring you on. The head of gas control, Patty Sullivan, has been out all week
so hopefully I should know something next week.


Full name of Contact: Gustavo Banderet

---------------------- Forwarded by Rodolfo Freyre/ENRON_DEVELOPMENT on
11/12/99 01:46 PM ---------------------------

Brent Hendry
11/12/99 12:40 PM
To: Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Re: EDEN Deemed ISDA

Give her the full name of the contact as well.  Thanks.

Rodolfo Freyre
12/11/99 04:32 PM
To: Sara Shackleton/HOU/ECT@ECT
cc: Jeff Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent
Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Re: EDEN Deemed ISDA

Sara,

E-mail:   gbanderet@aesc.com

Address:  Diagonal 80, 1001
  La Plata 1900
  Argentina

Phone:  54221.4292309
Fax:  54221.4292205

Rolo

Sara Shackleton@ECT
11/12/99 12:05 PM
To: Rodolfo Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff
Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: EDEN Deemed ISDA

Rodolfo and Jeff:  Would you please e-mail the name, address, fax and phone
of the person or persons to whom this Deemed ISDA should be directed.  We'll
be ready to send this out shortly.  Thanks.  Sara

P.S.  I have a conference call for the next hour.  If you have any
questions,  please call Marie Heard at EXT.  33907 or call me after 11 am
Houston time.


---------------------- Forwarded by Kevin G Moore/HOU/ECT on 04/03/2001 06:24
AM ---------------------------

Tony Hamilton@ENRON
04/03/2001 05:16 AM
To: Kevin G Moore/HOU/ECT@ECT
cc:
Subject: Re: Check and Car Hire

Kevin

My wife checked with our bank - it will take up to 10 days for the $2000
check to clear.

I checked with Enterprise (the car hire people) last night and the total bill
will be about $1251  - I don't have this much left on my credit card, help!

I am really sorry about the hassle this is causing you, but I need some way
for Enron to pay directly for the car, that way I won't need the $2000 check.

Many thanks for your help

Tony


---------------------- Forwarded by Sheila Glover/HOU/ECT on 02/13/2001 05:51
PM ---------------------------

Susan Musch@ENRON_DEVELOPMENT
01/21/2001 10:11 AM
To: Sheila Glover@ECT, Darren Delage@Enron
cc: Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jane McBride@Enron
Subject: Draft of EJC/ENA Service Agreement

Attached is a revised draft of the EJC/ENA Service Agreement.  Please note
the following:

(1) I have left section 4 as was in the EAFPL/ENA Service Agreement because I
think the language, as drafted, supports the position that ENA does not have
a permanent establishment in Japan.
(2) I have sent a copy of the draft agreement to PWC-Tokyo for their
comments.  I have done this to meet the verbage set forth in section 5 of the
agreement, and also to get their view on several things, such as quarterly
versus monthly billings, and whether the instructions referenced in section 5
can be incorporated in Schedule 1 or whether they should be set forth in a
separate document/memo.
(3) With respect to Schedule 1, I have basically left the original language
in there because I want the document to be user friendly, e.g., I don't want
it so specific that we have to amend it every couple of months.  I would like
your thoughts on this - whether this meets your needs or not.
(4) Also, in re-reading Schedule 1, I think the language is broad enough to
encompass what Sheila and I were talking about this past week.  That is, that
Darren is engaged in hedging what's been transacted each day by other
business units.  I think this language works because in the agreement,
Principal not only includes ENA but it also includes any affiliate of ENA.
Section 6 of Schedule 1 lists "providing a Principal with such administrative
assistance as it may reasonably require and request for the transactions
described in 1. above."  Section 10 of the Schedule expands upon this.
Again, I would appreciate your thoughts on this.  (Query how does Darren deal
with Principals now, e.g., does he get requests in writing from them now, as
is set forth in section 10 of the Schedule?)

Please let me know if you have any revisions, questions or comments.

Best regards,
Susan


only if you promise to post regular updates on the trucking market.

call chris gaskill to get the password.

From: Matthew Arnold/ENRON@enronXgate on 05/04/2001 10:22 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject:

 sign me up for the gas message board


John:

I just received the Instinet amendment to place additional access at Enron
House.  The "Equipment" is described as follows:

2 Additional Instinet Access ID
   (GYO5, GYO6-OMS) - London, England

Please verify that this is what you need.  I can have this signed immediately.

Sara


A draft copy of the presentation discussed, as well as the updated Pricing
Summary (with the most recent curves available).  Thanks.

Kortney


Try Roy Boston in our Hinsdale Ill office

	Elizabeth Labanowski@ECT
	Sent by: Elizabeth Labanowski@ECT
	01/18/2001 09:27 AM

		 To: Steven J Kean/NA/Enron@Enron
		 cc:
		 Subject: Disclosure of Business Dealings with Chicago Elected Officials -
Time Urgent

Here is the e-mail I discussed in my voice mail to you this morning.  Please
let me know whom I should deal with in the Governmental Affairs organization
about this.  Thanks.
----- Forwarded by Elizabeth Labanowski/EPSC/HOU/ECT on 01/18/2001 09:27 AM
-----

	David Roland@EES
	01/17/2001 04:01 PM

		 To: John Ale/HOU/AZURIX@AZURIX, AL ALEXANDERSON/ENRON@enronxgate, Rebecca
Carter/Corp/Enron@ENRON, Charles Cheek/Corp/Enron@ENRON, James
Derrick/Corp/Enron@ENRON, Mark A Evans/HOU/EES@EES, Mark E
Haedicke/HOU/ECT@ECT, Elizabeth Labanowski/EPSC/HOU/ECT@ECT, Marc
Manly/HOU/EES@EES, Jordan Mintz/HOU/ECT@ECT, Michael L Moran/HOU/EES@EES,
Kristina Mordaunt/Enron Communications@Enron Communications, Eric
Newell/EWC/Enron@ENRON, Janet Place/NPNG/Enron@ENRON, Rex
Rogers/Corp/Enron@Enron, Stephen Wallace/EOG/Enron@Enron, Rob
Walls/NA/Enron@Enron
		 cc: Dan Leff/HOU/EES@EES, Vicki Sharp/HOU/EES@EES
		 Subject: Disclosure of Business Dealings with Chicago Elected Officials -
Time Urgent

Enron Energy Services Operations, Inc. (EESO) is being asked to sign an
affidavit in connection with a bid to the City of Chicago (the bid is in the
name of Enron Building Services, Inc.).  Among the items in the affidavit is
a statement disclosing whether EESO or Enron Building Services (and
presumably any other Enron entity) has had a business relationship with a
Chicago city elected official in the previous 12 months.  "Business
relationship" is defined broadly to include business dealings with the
official, his or her spouse or entities in which the official has a financial
interest which entitles the official to payment of $2,500 or more in any
calendar year.  There are also certain exceptions that apply.

We are required to sign and submit the Affidavit this week, so if you are
aware of any transactions that might require disclosure in the above
Affidavit, please contact me by the end of the day today.  I apologize for
the urgent nature of this request.

Thank you,
David Roland
x3-5837


Jana,

Sorry, I shall be in Florida this Thursday.
I am speaking at a conference in Key Biscayne.

Talk to you soon.

Vince

Jlpnymex@aol.com on 03/28/2000 09:32:16 AM
To: Doris.A.Abernathy@ucm.com, nalexander@texasmonthly.emmis.com,
blackj@wellsfargo.com, ckcrews@swbell.net, rclark@nymex.com,
KCDunnagan@aol.com, rdyerlaw@houston.rr.com, ggulen@uh.edu,
lesley.guthrie@cpa.state.tx.us, elizabethherring@pzlqs.com,
eric.hoffman@esso.com, khcnb@arkansas.net, Michael.Jacobs@hq.doe.gov,
vkamins@enron.com, info@nutritionsoundbites.com, KimMorrell@excite.com,
adrian.a.nunez@usa.conoco.com, elizabeth_oldroyd@americancentury.com,
Woodybc@bp.com
cc:
Subject: (no subject)

Dear Friends:

It is time for Rockin' at Rockefellers which benefits the Houston Symphony!

This is your chance to dance, your date to associate,and your option to
auction!

Join us Thursday, April 6, from 7-10 p.m. at the legendary Rockefeller Hallon
historic Washington Avenue at Heights Blvd.  Dance the night away to the
sounds of Sammy Relford and friends and enjoy an open bar and light hors
d'oeuvres, and a silent auction full of unique, celebrity items.  Tickets are
$20 in advance, and $25 at the door.  Invite your friends, and join us there!

Jana Phillips


CALENDAR ENTRY:	APPOINTMENT

Description:
	Lynn - Oncall

Date:		11/4/2001
Time:		7:00 AM - 8:00 AM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Leslie

What's up? Dan is coming to town this weekend and we are going to try to get a bunch of people to go out on Saturday. Let me know if you are going to be around and if you talk to anyone else let them know.

Thanx

Chris


where are the charges? and please divide it all equally.  it was a great time
and there's just no reason for you guys to absorb the other costs,
particularly when the rest of us have the means to help out.

thanks again for a great time (despite the spades!).

	Nancy Sellers <Nancy.Sellers@RobertMondavi.com>
	04/04/2001 02:44 PM

		 To: Cameron <cameron@perfect.com>, Jeff Dasovich <Jeff_Dasovich@enron.com>,
"Prentice @ Berkeley" <PSellers@haas.berkeley.edu>, Prentice Sellers
<PSellers@pacbell.net>, Scott Laughlin <scottwl@hotmail.com>
		 cc: "'Eldon Sellers'" <Eldon@interx.net>
		 Subject: Mexico Bill

Below are the El Cid charges for you guys.  Since we forced you to come to
Mazatlan against your will, there are no charges for anything else!  I hope
you all had a good time - I sure did!

 <<...OLE_Obj...>>

Nancy
(707) 251-4870 (phone)
(707) 265-5446 (fax)
"Plus je bois, mieux je chante"


Julie,

Thanks. It feels awesome to have so much power.

Vince

"Julie" <julie@lacimagroup.com> on 05/11/2001 05:13:48 PM
Please respond to "Julie" <julie@lacimagroup.com>
To:	<Vince.J.Kaminski@enron.com>
cc:
Subject:	Re: got a hold of Fiona Grant

I think it was the copying of your name on my latest email ;-)

thanks for your help
----- Original Message -----
From:  Vince.J.Kaminski@enron.com
To: Julie
Sent: Wednesday, April 11, 2001 6:37  PM
Subject: Re: got a hold of Fiona  Grant

Julie,

You have more luck than myself. I called a  few times
and left messages on her voice  mail.

Vince

"Julie" <julie@lacimagroup.com > on  05/11/2001 07:04:40 AM

Please respond to "Julie" <julie@lacimagroup.com >

To:    "VinceJKaminski" <Vince.J.Kaminski@enron.com >
cc:
Subject:   got a hold of Fiona Grant

Vince,
Just to let you know, I  finally got in touch with Fiona  Grant.
J


Ca energy issues are out of control. Consumer groups are screaming about
gouging. I will email today's articles from the Chronicle. The market has
gone down more today with MSFT info after hours. Will keep being choppy. Glad
no further rearrangements at ENE. You mentioned Bonds the other day, do you
want some tax free muni ideas. If so how far out would you be comfortable
with? I will talk to my Dallas muni desk for suggestions. How big was that
check I was watching for? Ben

-----Original Message-----
From: Greg.Whalley@enron.com [SMTP:Greg.Whalley@enron.com]
Sent: None
To: Benjamin Bergfelt
Subject: RE: account

I'm not still short QQQ.  I covered at 68 1/2 in the after market while we
were on the phone, after the Florida supreme court statement.

The world has gone truly crazy about CA energy prices.

Not expecting any job changes due to the Skilling/Lay thing.  But a lot of
people are giving me shit anyway.  The recent reorganization that gave me
my current job was done so that Skilling wouldn't have to put anyone in the
COO position.

----Original Message-----
   >From:      "Benjamin Bergfelt" <ben.bergfelt@painewebber.com>
   >To:             "'gregwhalley@yahoo.com'"
<gregwhalley@yahoo.com>,"'greg.whalley@Enron.com'" <greg.whalley@enron.com>
   >Cc:
   >Bcc:
   >Subj:      account
   >Sent:      Wednesday, December 13, 2000 6:21 PM
   >
   >Greg, how big was that last check you told me to watch for. I will
transfer the remaining to the LIR. QQQ improved for your short today to
close at 68 47/64. Nothing good out of CA utilities and power. Nat Gas
lower today. I will watch tonight the new President and the vanquished.
Also, will today's announcement about ENE effect you? Ben


Daniel,

Sunday afternoon sometime.  Can be down for an hour or so.  Drop me a line if you need anything else.-

Don

 -----Original Message-----
From: 	Muschar, Daniel
Sent:	Thursday, November 01, 2001 10:17 PM
To:	Baughman Jr., Don
Cc:	Mcnair, Jason; Sieckman, John
Subject:	Mapp machine

Hey Don,

I need a little bit of info.  What time can the Mapp machine/printer go down the move weekend and how long can it stay down?

John:  We need to meet about this.  My office is open anytime, let me know.

Daniel A. Muschar
ECS Project Team Lead
Office: 713-853-4344
Cell: 281-541-6203
daniel.muschar@enron.com
CCNA, MCSE, CNA, A+


---------------------- Forwarded by Kay Mann/Corp/Enron on 08/31/2000 02:45
PM ---------------------------

	Enron North America Corp.

	From:  Kay Mann                           08/29/2000 09:57 AM

To: Brian Kerrigan/HOU/ECT@ECT, Herman Manis/Corp/Enron@ENRON, Chris
Herron/Corp/Enron@Enron, Jeffrey Keenan/HOU/ECT@ECT, Christi L
Nicolay/HOU/ECT@ECT, Mitch Robinson/Corp/Enron@Enron, Matthew F
Gockerman/HOU/ECT@ECT, Reagan Rorschach/NA/Enron@Enron, John
Moore/Corp/Enron@Enron
cc: Heather Kroll/HOU/ECT@ECT

Subject: Enron/VEPCO CEC

Here's the current redline, incorporating most of the comments made last
week.

Herman, the language to address your biggest issue is in 2.3, page 7 on the
marked version.

Thanks,

Kay

---------------------- Forwarded by Kay Mann/Corp/Enron on 08/29/2000 09:51
AM ---------------------------

"David Parr" <dparr@bracepatt.com> on 08/28/2000 01:12:54 PM
To: <heather.kroll@enron.com>, <kay.mann@enron.com>, <ozzie.pagan@enron.com>
cc: "Nancy Wodka" <nwodka@bracepatt.com>

Subject: Enron/VEPCO

Attached please find the latest version o fthe VEPCO agreement.  I have also
attached a version that has been processed through CompareRite against Kay's
August 15th version.

Feel free to call Nancy with questions and comments on 202-828-5862.

D. David Parr, Jr., Esq.
Bracewell & Patterson, L.L.P.
2000 K Street NW, Suite 500
Washington, D.C.  20006-1872
202-828-5800 Telephone
202-857-2122 Facsimile

 - CLEAN VEPCO PPA.doc
 - COMPARERITE VEPCO PPA.rtf


Also, instead of sending me the P&L via e-mail, arrange to have someone here to put the P&L and new deal reports on my desk as usual.

Thanks
 -----Original Message-----
From: 	Rogers, Glenn
Sent:	Tuesday, October 09, 2001 8:10 PM
To:	Zufferli, John; Richey, Cooper; Greenizan, Bill
Cc:	Reeves, Kathy
Subject:	P&L for Oct 9

Please find attached the file containing the P&L for Oct 9.

 << File: pwrdpr.xls >>


Hi Tana,

I know that you are expecting to get back to me next Wednesday but our
traders faced credit issues with Enron today and they asked me to push
forward the process of getting all agreements in place as soon as. Thus, I
am sending you a draft of a restated and amended guaranty agreement hoping
that this will help to speed up the process. I will call you on Monday.

 <<HQ@epmi_$30M.doc>>

 H,lSne Cossette
 ConseillSre Contrats Commerciaux
 *  (514) 289-6720
 *  514) 289-6722
 *  cossette.helene@hydro.qc.ca
 * A
 75 Ren, L,vesque Boulevard West, 18th floor
 Montr,al, Qu,bec, H2Z 1A4

 - HQ@epmi_$30M.doc


i think they call her "maddog murdock"