Re: the BPA deals - Sean Crandall said for pricing purposes it doesn't matter
whether the delivery point is in as Mid-C or NW delivered. The only reason he
entered NW delivered is because there was transmission involved. For your
purposes, Sean said it's fine to change the delivery point to Mid-C (NW
Delivered) in the confirms, but he didn't want to have it changed in EnPower
because that would mess with the routing.

Does that make any sense? Let me know if you need it changed in EnPower, and
I'll talk to Sean.

Thanks,
Kate

	From:  Kimberly Allen                           01/18/2001 01:34 PM

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

Subject: BPA

Also for #488526.01 and 488525.01 have the same issue with Delivery Point.

KA
---------------------- Forwarded by Kimberly Allen/HOU/ECT on 01/18/2001
03:36 PM ---------------------------

	Enron North America Corp.

	From:  Kimberly Allen                           01/18/2001 03:33 PM

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

Kate, I have a couple of confirms I received from BPA with the following
info. I spoke with BPA and they said that their trader had talked to Sean
Crandall and agreed to Mid Columbia as the Delivery point, however in the
Enpower they have Northwest Delivered. Could you please check into:

#492613.01, 492612.01, 492611.01, 488524.01, 488523.01 These all say NW in
the system but BPA has Mid C on confirm

#491609.01 This trade has a trade date of 1/8/01. But on BPA's confirm they
have a trade date of 1/5/01. Could you ask Mike who did the trade which is
correct?

Thanks,

Kimberly


Rain,

Please forward to the traders.

thanks
---------------------- Forwarded by Hunter S Shively/HOU/ECT on 09/28/2000
05:24 PM ---------------------------
From: Mark E Haedicke on 09/27/2000 05:17 PM
Sent by: Janette Elbertson
To: Tim Belden/HOU/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, John
Arnold/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT, Hunter S Shively/HOU/ECT@ECT,
Phillip K Allen/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT, Christopher F
Calger/PDX/ECT@ECT, W David Duran/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT,
Jeff Donahue/HOU/ECT@ECT, Brian Redmond/HOU/ECT@ECT, C John
Thompson/Corp/Enron@ENRON, Scott Josey/Corp/Enron@ENRON, Rob
Milnthorp/CAL/ECT@ECT, Max Yzaguirre/NA/Enron@ENRON, Beth
Perlman/HOU/ECT@ECT, Wes Colwell/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, David
Oxley/HOU/ECT@ECT, Joseph Deffner/HOU/ECT@ECT, Jordan Mintz/HOU/ECT@ECT,
Jeffrey A Shankman/HOU/ECT@ECT, Philippe A Bibi/HOU/ECT@ECT, Greg
Wolfe/HOU/ECT@ECT, Fred Lagrasta/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT,
Bob Crane/HOU/ECT@ECT, Robert Knight/HOU/ECT@ECT, Colleen Sullivan/HOU/ECT@ECT
cc: Mollie Gustafson/PDX/ECT@ECT, Felicia Doan/HOU/ECT@ECT, Ina
Rangel/HOU/ECT@ECT, Kimberly Brown/HOU/ECT@ECT, Airam Arteaga/HOU/ECT@ECT,
Christy Chapman/HOU/ECT@ECT, Tina Rode/HOU/ECT@ECT, Marsha
Schiller/HOU/ECT@ECT, Lillian Carroll/HOU/ECT@ECT, Tonai
Lehr/Corp/Enron@ENRON, Nicole Mayer/HOU/ECT@ECT, Darlene C
Forsyth/HOU/ECT@ECT, Angela McCulloch/CAL/ECT@ECT, Jennifer
Burns/HOU/ECT@ECT, Pilar Cerezo/NA/Enron@ENRON, Cherylene R
Westbrook/HOU/ECT@ECT, Shirley Tijerina/Corp/Enron@ENRON, Nicki
Daw/NA/Enron@Enron, Kimberly Hillis/HOU/ECT@ect, Patti Thompson/HOU/ECT@ECT,
Tammy R Shepperd/HOU/ECT@ECT, Debra Davidson/PDX/ECT@ECT, Peggy
McCurley/HOU/ECT@ECT, Jewell Wade/NA/Enron@Enron, Debra Davidson/PDX/ECT@ECT,
Becky Young/NA/Enron@Enron
Subject: Retention Policy on Trading Tapes

Effective October 15, 2000, the retention period on tape recordings of trades
done by telephone will be reduced from four months to one month.  The tapes
regarding significant transactions may be retained for such longer period as
approved in writing by both the Head Trader and the General Counsel.  Please
propose those significant transactions on which you may wish to retain the
tapes, prior to October 15, 2000, since the tapes on conversations older than
one month (except with respect to litigation matters) will be destroyed on
that date.  If you have any questions, please contact Mark Haedicke or
Richard Sanders.

John Lavorato and Mark Haedicke


Attached you will find the weekly report for the week ending for May 11, 2001.

Saludos


My view is that we can't associated ourselves with IEP anymore.  They are
generators, who now where the black hat.  If we are going to participate, we
need to do it with some protections.


No problem.

<KAREN.SAMPLES@chase.com> on 02/05/2001 10:19:01 AM
To:	tracy.geaccone@enron.com
cc:

Subject:	v-day party

I think everything is working for the Valentine's Day party. Julie backed
out on the activity, but Robin Burks and Lorraine Lewis are going to
oversee it. There is one problem though. The craft needs to be picked up
and paid for on Thursday morning after carpool in the cafeteria. Both Robin
and Lorraine are working and I will be in Chicago on business. Do you think
you could drop by there?
Thanks,
Karen


TW received $125,448.39 from Burlington in payment of their shipper imbalances.

good job by Tracey in following up on this payment


How do I go about getting my logon id and password?  I seem to have deleted
the e-mail that was sent out.

Thanks,

Eric Bass
x30977


Ben, I was unable to launch the .pdf file - message said "an application to
open this document cannot be found."  I wasn't able to view it, too.  Can you
send it in another format?  SRS

From: Ben F Glisan@ECT on 01/24/2001 07:04 AM
To: Mark Koenig/Corp/Enron@ENRON, Steve Kean, Andrew S Fastow/HOU/ECT@ECT,
Rick Buy, Jeff Skilling/Corp/Enron@ENRON
cc:

Subject: 1/23/01 ENE credit update

FYI.

Ben
----- Forwarded by Ben F Glisan/HOU/ECT on 01/24/2001 07:03 AM -----

	paul.h.tice@db.com
	01/23/2001 05:36 PM

		 To: peter.lukowitsch@db.com, robert.desmond@db.com, keith.cooper@db.com,
christopher.g.foy@db.com, paul.gallagher@db.com, kenneth.coto@db.com,
roger.weilep@db.com, steve.williams@db.com, mike.backwell@db.com,
mark.dorsett@db.com, donville.reid@db.com, tony.britton@db.com,
gary.piligian@db.com, nicholas.j.clendenin@db.com, john.a.freeman@db.com,
stephen.r.carrier@db.com, michael.george@db.com, john.w.creahan@db.com,
raymond.shalley@db.com, david.m.klein@db.com, michael.mazzacco@db.com,
john.denning@db.com, brian.c.phelan@db.com, stuart.c.salyer@db.com,
robert.p.ontko@db.com, jonathon.n.pedersen@db.com, michael.k.solberg@db.com,
peter.h.wu@db.com, michael.b.rand@db.com, deborah.horrigan@db.com,
gregory.thompson@db.com, robert.jenvey@db.com, anne.poarch@db.com,
cathy.m.ward@db.com, david.selzer@db.com
		 cc:
		 Subject: 1/23/01 ENE credit update

Please find attached a copy of our 1/23/01 credit update on Enron Corp.
(ENE). Let me know if you have problems opening this pdf file.

Paul

(See attached file: 012301ene.pdf)

 - 012301ene.pdf


This is a notice to inform you that the server where your Outlook mailbox resides is scheduled for an outage tonight.  Your mailbox will be temporarily unavailable starting anytime after 11pm and may continue to be unavailable until 1 a.m., when all server maintenance work have been completed.  Outlook Web Access (OWA) will also be unavailable during this time.

Blackberry users:  Message delivery may be delayed for a few minutes.

If you have any questions, please call the Resolution Center at x31411.


Bush Task Force on Energy Worked in Mysterious Ways
The New York Times, 05/16/01

Texaco May Build a Facility to Regassify Liquefied Natural Gas Offshore
Louisiana
The Wall Street Journal, 05/16/01
Enron to drop suit against NGX
Houston Chronicle, 05/16/01

Plots & Ploys
The Wall Street Journal, 05/16/01

THE AMERICAS: Energy worries throw the spotlight on Chilean policy
Financial Times; May 16, 2001

Enron urges more electric power reform
The Yomiuri Shimbun / Daily Yomiuri, 05/16/01

Enron lawsuit deal to broaden indexes
The Globe and Mail, 05/16/01

Saudi Gas Proj MOUs Expected To Be Signed Jun 6 - Sources
Dow Jones Energy Service, 05/16/01

INDIA: Lenders to vote Wed on cancelling Enron India deal-paper.
Reuters English News Service, 05/16/01

India: 2 units of Sharavathy Project commissioned
The Hindu, 05/16/01

India: Dabhol power project
Business Line (The Hindu), 05/16/01

Three members of Godbole committee quit
The Economic Times, 05/16/01

Panel to brief Gokak on Godbole plans on Wed
The Economic Times, 05/16/01

Settle Enron issue amiably: Munde
The Times of India, 05/16/01

Sharavathi power units inaugurated
The Times of India, 05/16/01

Dunham, Lay, Raymond Among Few to Meet With Cheney on Energy
Bloomberg, 05/16/01

National Desk; Section A
Bush Task Force on Energy Worked in Mysterious Ways
By KATHARINE Q. SEELYE

05/16/2001
The New York Times
Page 1, Column 4
c. 2001 New York Times Company

WASHINGTON, May 15 -- The tiny staff of the Bush administration's Energy
Development Task Force is led by two former aides to Senator Frank H.
Murkowski, the Alaska Republican who is the chairman of the Senate Energy
Committee. The aides jokingly call themselves the Alaska jihad.
But Mr. Murkowksi, when asked recently about the role his former aides,
Andrew Lundquist and Karen Knutson, have played in the task force's
much-anticipated report, which will be released on Thursday, replied, ''They
don't tell me anything.''
On the eve of the release of the 170-page report, the broad outlines are
fairly well known. The plan encourages the production of oil, gas, coal and
nuclear power and calls for some tax credits for renewable energy resources
and a push for conservation. But since the task force's work began in
February, most of Washington has remained in the dark about how it operated,
which arguments it embraced and how it reached decisions on some of the
nation's thorniest energy issues.
Individuals from the task force have met with more than 400 people from more
than 150 groups over the last three months. Mr. Lundquist said today that he
could not provide a list of all the groups he had spoken with. ''I can't
really tell you who, because there are hundreds I've met with,'' he said.
Administration officials also said that they wanted to keep private the list
of those they met with to encourage the free flow of ideas. Still, they said
that they had talked with a broad range of interested parties.
In a recent interview, Vice President Dick Cheney said: ''The staff of our
energy task force has spent time with folks from various pieces, parts, of
the industry. We've also spent time with the environmentalists. I spent a lot
of time with members of Congress, listening to them, both parties, on energy.
So the idea that somehow only the energy industry has access just simply
isn't true.''
But last month, two Democrats on Capitol Hill challenged the secrecy of the
process surrounding the task force, which has met eight times in the last 90
days. David S. Addington, counsel to the vice president, responded that it
did not have to provide information about the process because all of the
staff members are federal employees. In addition, environmental groups have
requested documentation about task force meetings under the Freedom of
Information Act, but so far those have been denied.
Democrats and environmentalists say the process was tilted heavily toward the
coal, gas and oil industries and point out that the energy industry is one of
the biggest contributors to political campaigns, giving $64 million last
year, three-fourths of it to Republicans.
Among those who said they felt shut out was the Consumer Federation of
America, the nation's largest consumer-advocacy group. Howard Metzenbaum, a
Democrat and former senator from Ohio who is now chairman of the group, said,
''The energy crisis is first and foremost a price crisis affecting consumers.
''It's an incredible insult to the consumers of this country that, to the
best of my knowledge, none of the consumer organizations were invited to the
meetings or otherwise participated,'' he said.
Juleanna Glover Weiss, Mr. Cheney's spokeswoman, said no invitations were
issued and groups had to request meetings. ''We didn't invite anybody to meet
with us,'' she said.
The leaders of about two dozen environmental groups had asked to see Mr.
Cheney, whose office turned down their requests. Instead, midlevel staff
members from the groups met with Mr. Lundquist and Ms. Knutson.
Alys Campaigne, legislative director of the National Resources Defense
Council, said that that meeting lasted about 40 minutes but that the size of
the group inhibited substantive policy discussion.
''We asked who the deputies were on different issues so we could have more
in-depth conversations, and they wouldn't tell us,'' she said. ''They said,
'Just send us paper, we'll take a look at it.' The meeting felt like window
dressing for us, but they got to check off the box that they consulted with
stake-holders.''
Mr. Lundquist said he viewed his meeting with the environmental groups as ''a
good conversation.''
Some of the industry representatives who did get audiences with the vice
president said the task force's deliberations seemed a mystery to them, too.
John Grasser, a spokesman for the National Mining Association, said: ''We've
probably had as much input as anybody else in town.'' But, he added, ''All we
know is what we read in the paper. This is a tight-lipped process. I have to
take my hats off to them -- they've been able to keep a lid on it.''
Richard S. Shapiro, senior vice president of the Enron Corporation, a major
Republican contributor and the nation's largest trader of wholesale
electricity and natural gas, said top executives from his firm spent half an
hour with Mr. Cheney, but he could not tell how much this may have influenced
the final report.
''Energy issues are a very high priority, and we've had the opportunity to
provide some input into the process,'' Mr. Shapiro said. ''But it's been
difficult to get input in the task force. Other consumer groups have been
weighing in with perspectives. It's not an open-hearing setting.''
Tom Kuhn, head of the Edison Electric Institute, the utility lobbying group,
and a friend of the president's since they were classmates at Yale, saw the
process as relatively open.
''The task force put out the word they were open to input,'' he said in an
interview. He said that his group sent them reports and that some executives
met briefly with Mr. Cheney.
Given all of their interaction with so many groups, Mr. Lundquist denied that
the process had been secretive. ''I don't think that's fair,'' he said.
''There's been no attempt to make it a secret process. All it's been is an
effort to work on and put out good policy.''

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

Texaco May Build a Facility to Regassify Liquefied Natural Gas Offshore
Louisiana
By Alexei Barrionuevo
Staff Reporter of The Wall Street Journal

05/16/2001
The Wall Street Journal
B4
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Texaco Inc., joining a growing list of companies looking at ways to import
more natural gas, said it is considering building a terminal in the Gulf of
Mexico that would regassify liquefied natural gas.
While other companies have looked at building land-based LNG terminals,
Texaco, based in White Plains, N.Y., is considering going offshore. The
facility would be constructed in shallow waters off Louisiana and make use of
Texaco's extensive offshore pipeline system. The system's spare capacity has
grown in recent years as the Gulf of Mexico's natural-gas production has
declined.
Cooling natural gas to a point where it liquefies greatly condenses the gas
and allows it to be shipped by tanker over long distances.
Currently, the U.S. only has four LNG receiving terminals, two of which have
been mothballed for more than 15 years. Until this year, LNG was considered
too expensive for the U.S. market, which relies on LNG for less than 2% of
total natural gas supply.
But with natural-gas prices averaging about twice what they were in 1999, the
owners of the mothballed terminals are bringing them back and a flurry of
companies have announced plans to build new terminals on both the East and
West coasts. The companies include El Paso Corp., Enron Corp., Phillips
Petroleum Co. and Chevron Corp., which has agreed to buy Texaco in a pending
deal.
Texaco is initially considering a terminal designed to process about one
billion cubic feet of gas per day. The facility's capacity could later be
doubled, depending on natural-gas demand in the U.S.
"The U.S. demand for natural gas continues to increase at a significant pace,
demonstrating the need for clean burning fuels for power generation,
industrial fuels and residential markets," said Robert A. Solberg, president
of Texaco's commercial development business unit.
From the proposed Louisiana terminal the natural gas would be fed into
several interstate pipeline systems, as well as the Henry Hub futures pricing
point in south Louisiana, which is operated by Sabine Pipeline Co., a Texaco
subsidiary.
Texaco said the proposed terminal could be up and running in four to five
years. While the company said it is still evaluating the terminal's cost,
other companies have said land-based facilities would each cost about $300
million to $400 million. Texaco expects its feasibility study to be done
within six months.

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

May 16, 2001
Houston Chronicle
Briefs: Houston & state
Enron to drop suit against NGX
Enron Corp. agreed to provide natural-gas pricing information to NGX Canada
and drop a $64.6 million suit against the Canadian gas exchange.
Houston-based Enron sued NGX in November after the Internet exchange, a unit
of the company that owns the Stockholm Stock Exchange, changed providers of
its gas-pricing data and didn't include trades on EnronOnline, Enron's
Internet exchange, when calculating gas-price indexes.
Calgary-based NGX agreed to include EnronOnline trades in its calculation of
its Alberta Gas Price Indices by August, Enron spokesman Eric Thode said.

The Property Report
Plots & Ploys
By Peter Grant

05/16/2001
The Wall Street Journal
B12
(Copyright (c) 2001, Dow Jones & Company, Inc.)

[What's Brewing in the Real Estate Market]
Bright Spot
FUELED BY A STRONG energy sector, the Houston office market is outperforming
the rest of the country. While many cities saw office vacancy rise in the
first quarter, the downtown vacancy rate in Houston dropped to 6.26% from
6.65% at the end of last year, according to CB Richard Ellis.
Expanding companies include Enron Corp., Reliant Resources Inc., Dynegy Inc.
and other energy companies that have been profiting from the deregulation of
the electricity business. Houston also has been benefiting from consolidation
in the oil and gas industry. Giants like Exxon Mobil Corp. and Anadarko
Petroleum Corp., which acquired Union Pacific Resources last year, have
relocated divisions to the city.
Rents in the hottest submarkets are continuing to increase, according to Will
Penland, head of CB's Houston office. "We're at levels we haven't seen since
the late 1970s," he says.
All this is good news for the three developers that have projects underway
downtown. Indeed, Crescent Real Estate Equities has leased over 70% of the
space in 5 Houston Center, a 27-story building that's still more than one
year away from opening. "It's a very good time to be in Houston," says
Crescent chief executive John Goff.
To Sell or Not to Sell
THE SALES MARKET is continuing to slow as the gap widens between asking
prices and what buyers are willing to pay. In the first quarter, about $11.6
billion of property traded hands, down 11% from the same period in 2000,
according to Granite Partners.
Many sellers are choosing to refinance, an option made especially attractive
by declining interest rates. For example, a group led by Emmes & Co. just
refinanced the 21-building Meadows Business Park outside of Baltimore for $40
million after failing to get its price of about $55 million. The three-year
floating rate loan with CDC Mortgage Capital Inc. was brokered by
Insignia/ESG Capital Advisors.
S. Lawrence Davis, an Emmes partner, notes that the $40 million is well in
excess of the $35 million the group invested into the property. "We recognize
at the moment it's not the appropriate time to sell," he says.
Hoop Dreams
IN THE MID-1980s, city officials in Springfield Mass., convinced the Naismith
Basketball Hall of Fame to move to a forlorn riverfront urban renewal site.
But the stores, restaurants and hotels that city officials said would follow
never materialized. "Not a darn thing happened," says Michael Downey,
president of the O'Connell Group, a consultant to the museum.
Despite this history, the Hall is giving Springfield a second chance. Now
rising a short distance from the existing facility is a new, larger Hall of
Fame that's scheduled to open next year. Once again government officials are
promising that numerous other projects will follow.
But this time the museum has reason to be confident. The city and state
agreed to put up $70 million of the project's $109 million cost, after the
museum threatened to move to Orlando, Fla. A new tourist center already is
being built on the site and the Picknelly family, which owns Peter Pan Bus
Lines, is set to break ground soon on a Hilton Garden Inn and Pizzeria Uno
Chicago Bar & Grill.
There's even talk of converting the shuttered 110-year-old county jail on the
site into an aquarium or some other tourist attraction to complement the
Hall. One possibility the locals are joking about: using it as a Hall of
Shame where lousy referees could be incarcerated. "I'm sure there would be a
number of players who would support that," says Thomas McColgan, the city's
economic development director.
Price Reduction
AFTER MONTHS of negotiations, Philadelphia's Berwind Property Group has
signed a binding contract to acquire the Barbizon Hotel from Ian Schrager.
But the price of $96 million is about $4 million less than what was being
discussed at the end of last year, a reflection of the softening sales
market, people with knowledge of the deal say. Berwind plans to add the
306-room property to its Melrose chain of high-end hotels.

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

		THE AMERICAS: Energy worries throw the spotlight on Chilean policy
Financial Times; May 16, 2001
By RAYMOND COLITT and MARK MULLIGAN

		An energy crisis in Brazil and the threat of a capacity shortfall in Chile
has thrown the spotlight on government policy on tariffs and competition, and
drawn pressure from the multinational groups that control private-sector
generation in South America.
		Both cases also highlight the dangers of over-reliance on hydroelectric
generation in countries where rainfall can vary widely year to year.
		Low rainfall in Chile in 1998, for example, deprived the hydraulic plants
that serve the country's populous southern half of melted snow from the
Andes, plunging Santiago and other urban centres into darkness during four
months of rationing. The crisis exacerbated a recession in 1999, when growth
dropped into negative territory for the first time in 16 years.
		Industry leaders warn of a repeat in 2003, unless generators are encouraged
to invest in new thermal plants with tariffs - or node prices - which reflect
the increased costs of natural gas and other combustibles.
		"What we need is more thermal capacity," says Andres Gluski, chief executive
of AES-owned Gener, Chile's second-largest generator and the third-biggest in
the region.
		"If we simply build more hydro plants we end up with the same problem that
Brazil is experiencing at the moment," he said.
		In Brazil, the government is preparing a rationing programme that could force
a 15-20 per cent reduction in consumption over the next few months, and shave
a percentage point from gross domestic product for the year.
		Although drought in the country - which relies on water for 90 per cent of
generation - is blamed for the crisis, industry leaders and experts say lack
of investment by the state, which still controls 80 per cent of capacity, and
the slow pace of privatisation are the main underlying problems.
		"Of course the crisis could have been avoided - it has been in the making for
years," said Mauricio Tolmasquim, energy expert at Federal University in Rio
de Janeiro. He says that while consumption has grown 50 per cent in the past
decade, generating capacity has increased only 35 per cent.
		The government estimates that Brazil needs 25,000MW of new capacity over the
next five years, but companies are holding back on investment because current
tariffs makes new projects unprofitable. Enron, the US energy group, has put
two of its three energy projects on hold.
		"We're in a capital-intensive business, in which the recovery of investment
requires a long period of time," said Alfredo Llorente, president of Enersis,
the Latin American holding company for Endesa of Spain, the region's largest
electricity investor. "Therefore it is essential to know what rules are going
to apply over the long term."
		Despite growth in electricity demand in Chile averaging about 7 per cent
since 1996, there has been little new capacity installed since then.
		Part of the problem stems from heavy investment in cheaper, gas-fired plants
in the mid-1990s by the dominant three generators, encouraged by a new
pipeline from Argentina. This created a surplus of generating capacity, which
contributed to a 40 per cent decline in node prices between 1996 and 1999.
		At the same time, an international credit squeeze began depriving the Chilean
operators of funds for fresh investment, leading eventually to their sale to
the large foreign groups.
		These companies now say that even after a recovery of prices in the last
year, investment in new capacity remains unprofitable.
		One solution is the interconnection of the main Chilean and Argentine grids,
but this will take four to five years.
		Another is the connection of Chile's over-supplied northern grid, fuelled by
two gas pipelines from Argentina, to the more populous southern grid. But
this would not be feasible, said Andres Gluski.
		Copyright: The Financial Times Limited

Enron urges more electric power reform

05/16/2001
The Yomiuri Shimbun / Daily Yomiuri
Copyright (C) 2001 The Yomiuri Shimbun; Source: World Reporter (TM) - Asia
Intelligence Wire

Enron Japan Corp., a Japanese subsidiary of United States energy giant Enron
Corp., published a reform proposal for the Japanese electricity market
Tuesday.
The proposal urged the government to implement the suggested reforms over a
two-year period beginning at the start of 2002, following deregulation of the
Japanese retail electric power market, which began in March this year.
Japan has allowed nonutility companies to supply power to industrial and
commercial users since March.
Enron is seeking to enter the Japanese energy market on a large-scale basis
following the deregulation efforts.
In the reform proposal, Enron Japan argued that the present liberalization of
the electricity market was insufficient by presenting original data showing
that Japanese electricity charges were 46 percent higher than average when
compared with those of other member countries in the Organization of Economic
Cooperation and Development.
Enron's reform proposal includes 10 measures to promote competitiveness in
the Japanese market, such as a separation of conventional power companies'
supply operations from the generation, transmission and distribution of
electricity.
The proposal also contends that conventional power companies are monopolies
that should be prohibited from constructing new electricity-generating
facilities within the areas they currently supply. It also urges the
privatizing of operations for the development of power sources. These measure
are meant to make it easier for those newly entering the business to gain a
competitive foothold.
In March Enron applied for approval from Aomori Prefecture to build a large
thermal power plant in Rokkashomura.
Copyright 2001 The Daily Yomiuri

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

Report on Business: Canadian
Enron lawsuit deal to broaden indexes
DAVID PARKINSON

05/16/2001
The Globe and Mail
Metro
B10
"All material Copyright (c) Bell Globemedia Publishing Inc. and its
licensors. All rights reserved."

CALGARY -- Enron Canada Corp. has dropped its $101-million lawsuit against
on-line natural gas trader NGX Canada Inc. and energy newsletter publisher
Canadian Enerdata Ltd., after reaching an agreement to have Enron's on-line
trading data included in key Alberta gas pricing indexes published by NGX and
Enerdata.
The deal, announced yesterday, will significantly broaden NGX's indexes by
adding trades from North America's biggest on-line trading system,
EnronOnline, to the calculations. It also opens the door for the development
of a "superindex," a single price index using combined trading data from key
on-line trading systems.
"This can be seen as the first step toward that," said Peter Krenkel,
president of Calgary-based NGX, adding that other on-line trading services
have already inquired about having their data included in NGX's indexes.
Enron filed its suit in November, alleging that it suffered "irreparable
harm" when Enerdata sold the rights to its natural gas price indexes to NGX,
which operates the on-line Natural Gas Exchange. NGX changed the method of
calculating the indexes, basing them solely on trades over the Natural Gas
Exchange rather than Enerdata's old survey of a wide variety of market
participants.
Enron, a unit of Enron Corp. of Houston, had argued that the new calculation
method was less neutral and reliable than the old method. The indexes are
used by many natural gas market participants as the basis for prices in gas
hedging contracts.
Rob Milnthorp, president and chief executive officer of Enron Canada, said
the agreement to include EnronOnline's data in the NGX indexes "will provide
industry participants with a more comprehensive source of data and a better
opportunity to manage risk around these price indexes."

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

Saudi Gas Proj MOUs Expected To Be Signed Jun 6 - Sources

05/16/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

DUBAI -(Dow Jones)- Memoranda of understanding between international oil
companies and Saudi Arabia on three gas ventures on offer in the kingdom are
expected to be signed June 6, industry sources told Dow Jones Newswires
Wednesday.
Saudi Arabia's Supreme Petroleum Council met Tuesday and endorsed a final
selection of international oil companies for each of the three projects,
which have been estimated at a combined investment value of $25 billion, the
sources said.
The companies concerned are expected to be notified any time on whether they
have been selected and given about 10 days to respond.
The 11 companies being considered are Royal Dutch/Shell Group (RD), BP PLC
(BP), Exxon Mobil Corp. (XOM), Chevron Corp. (CHV), Total Fina Elf S.A.
(TOT), ENI SpA (E), Enron Corp. (ENE) and Occidental Petroleum Corp. (OXY),
who are bidding jointly, Marathon Oil Canada Inc. (T.M), Conoco Inc. (COCA)
and Phillips Petroleum (P).
Saudi Arabia invited international oil companies in October 1998 to
participate in proposals for downstream gas projects and upstream gas
enhancement.
-By Dyala Sabbagh; Dow Jones Newswires; 9714 3314260;
dyala.sabbagh@dowjones.com -0- 16/05/01 07-07G

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

INDIA: Lenders to vote Wed on cancelling Enron India deal-paper.

05/16/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, May 16 (Reuters) - Lenders to U.S.-based Enron Corp's troubled Dabhol
Power Company (DPC) will vote on Wednesday on whether the company should
issue a notice to cancel its contract to sell electricity to India's
Maharashtra state, a business daily said.
The Business Standard said the 25 lenders to DPC will most probably back the
proposal to terminate the agreement, which has spoiled relations between
India and its largest foreign investor and cast a shadow over future foreign
investment in India's power sector.
"It is almost a foregone conclusion that DPC will be asked to issue its
termination notice," the paper said in an unsourced report.
It said that foreign institutions which lent 30 percent of the $2 billion in
debt back such a move.
But Indian lenders, whose loans are not backed by a federal government
guarantee, are likely to vote against the proposal, the newspaper said.
The Industrial Development Bank of India , State Bank of India , Industrial
Finance Corporation of India , Canara Bank and ICICI are the major Indian
lenders.
Enron and India have been sparring for six months over payment defaults by
the Maharashtra State Electricity Board (MSEB) for power purchased from DPC.
DPC, owned 65 percent by Houston-based Enron, is building the world's largest
natural gas-fired power plant on India's western coast. The 740 MW first
phase of the facility began operating in 1999. The plant's generation
capacity will more than triple to 2,184 MW when phase two is completed next
month.
MSEB had agreed in 1995 to buy all the power produced by the plant but has
now reneged on that commitment, sparking concern over the fate of the
project.
Last month the DPC board authorised its management to terminate the contract
to sell power and the lenders' decision on Wednesday could add weight to that
decision.
($1=46.93 Indian rupees).

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

India: 2 units of Sharavathy Project commissioned
Our Staff Correspondent

05/16/2001
The Hindu
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

GERUSOPPA (Uttara Kannada Dist), MAY 15. The Chief Minister, Mr. S. M.
Krishna, said here on Tuesday that the Karnataka Power Corporation (KPC), of
which he is the Chairman, had prepared an ambitious plan to add an additional
power of 2000 MW with a total investment of Rs. 10,000 crores in the next
five years to the State Power Grid to meet the increasing demand for power.
Addressing a gathering after dedicating the first two units of the Sharavathy
Tail Race Project with an installed capacity of 60 MW each at Gerusoppa to
the nation, he said the third unit of the project, which formed the final
phase of the power projects in the Sharavathy Valley, was planned to be
commissioned in October and the fourth by the end of March next.
He said the seventh unit of the Raichur Thermal Power Project with an
installed capacity of 210 MW was scheduled to be completed by March 2003.
Similarly, Alamatti Dam Power Project would be ready for commissioning by the
end of 2003.
He said the Vijaynagar Power Project with a capacity of 500 MW, which was
being implemented in the joint sector, would be dedicated to the nation by
2005. The Union and the State governments had given clearance to this
project.
Mr. Krishna said that the Bidadi Gas-based 700 MW Power Project would be
ready for commissioning by the end of 2005. In addition, a barge-mounted
power project in the private sector with an installed capacity of 220 MW, and
the power projects by the Tatas and the Jindal company with capacities of 80
MW and 100 MW respectively were in the offing.
Emphasising the need for working out cost effectiveness of new power projects
before they were taken up to make power affordable for the common people, the
Chief Minister explained the reasons why the previous Congress Government in
which he was the Minister for Power, cancelled the agreement with the
Cogentrix company on a power project.
He said there was criticism when the project was dropped after it was debated
for nearly 14 years. He said the cost effectiveness (of the project) was the
only reason for dropping the proposal which was planned to be handed over to
the Cogentrix company.
Mr. Krishna referred to the predicament of the Maharashtra Government which
now found itself trapped in an agreement on a power project with the Enron
company and said that State (Maharashtra) had found itself in such a
situation that even the Centre could not bail it out.
"We are lucky that we did not get trapped in a similar project with the
Cogentrix. It is difficult to imagine what could have been the position of
the KPC, if we had gone ahead with the agreement with the Cogentrix," he
said.
Mr. Krishna said that it was for the reason of cost effectiveness that the
proposed Alamatti Dam Power Project was handed over to the KPC when the offer
made by TAPCO for its implementation was found to be "extremely costly."
He said that after the TAPCO offered to complete the 290 MW project at a cost
of Rs.1400 crores, the KPC was asked to prepare the plan which it did with an
estimated cost of Rs.700 crores. Immediately after that, the KPC was given
the green signal to prepare the pre-survey of the project.
"If the project (Alamatti Dam Power Project) was handed over to TAPCO, it
could have been profitable" (which he said needed no elaboration), "but it is
the protection of the interest of common people which is of paramount
interest to us. TAPCO may approach the court for the breach of agreement but
we will fight it out there (court) also," he said.

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

India: Dabhol power project

05/16/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

This refers to the article 'DPC-MSEB slugfest: Needed, a conciliatory
approach' (Business Line, May 11). The author has tried to defend the Dabhol
project. Unfortunately his claims hold no water for the following reasons:
DPC is not the only IPP among the fast-track projects. The 208 MW Jagrapadu
in Andhra Pradesh (GVK Power) was the first and is doubling capacity.
Spectrum (208 MW) was the second. Enron is the third. ST-CMS in Tamil Nadu is
almost complete. The other fast-track projects - Cogentrix, Hinduja Power and
Bhadravati Power (L. N. Mittal) - are languishing. However, in terms of
project cost, fixed-charge payments and the total tariff, DPC stands tall.
Several IPPs have come up successfully without counter-guarantees: GMR, PPN,
Balaji and South India Viscose in Tamil Nadu; and Paguthan and GIPCO in
Gujarat. Some are under development and their problems are not FDI, equity or
debt, but the non-availability of the escrow - a result of bad management by
the States.
Similarly, a number of LNG projects is in the pipeline. If permitted, they
could go on-stream in good time. Let us remember that Enron LNG has a
sovereign guarantee and a very high return on equity and is protected by a
power purchase agreement (PPA) that will use only half its capacity. However,
Enron will recover its entire cost in that 50 per cent utilisation. Enron's
LNG terminal will perhaps make the highest profits in the world. LNG projects
are feasible all along the coast and the Enron project could even be sold to
an outsider.
The cancellation of the Enron PPA will result in a huge liabilities to be
paid by the people of Maharashtra as a result of the follies of their
political leaders.
The project can be sold to international buyers at a reasonable price and the
loss, if any, absorbed by the people of Maharashtra who might be ready to pay
an Enron Cess over the next 20 years.
Now let us come to the number-crunching. At Rs 87.50 a month fixed cost, the
net present value of the fixed cost of DPC- I over 15 years works out to (at
15 per cent per annum) Rs 6,252 crore. For 740 MW, this works out to Rs 8.45
crore per MW.
At Rs 292 crore, the net present value for the 2,150 MW DPC I and II is (at
15 per cent pa for 15 years) Rs 20,863 crore - Rs 9.70 crore per MW. When DPC
I was 740 MW, the NPV per MW was Rs 8.45 crore. To achieve scales of economy
when the project was expanded to 2,150 MW with an LNG project, the NPV rose
to Rs 9.70 crore. Is there any power project in the country, or the world, at
this cost?
Be it naphtha or LNG, the MSEB is paying for the actual cost of the fuel.
Here too, Enron is making a huge profit - burning naphtha at 1,700 kcal per
unit and claiming reimbursement at 2,000 kcal per unit.
When the fuel cost is reimbursed at actuals the expansion of DPC should have
reduced the fixed cost. On the other hand, it has increased it to over 13 per
cent. Perhaps, the DPC project should be referred to the Guinness Book - for
the highest cost per MW of power. Certainly, nobody would dare beat its
record.
S. Padmanabhan

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

Three members of Godbole committee quit
Our Bureau

05/16/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

MUMBAI
EVEN as efforts to renegotiate the Enron power deal get underway, three
members of the nine-member Madhav Godbole committee have decided to quit.
Former Union energy secretary and Andhra Pradesh Electricity Board member E A
S Sarma, Tata Energy Research Institute director Rajendra Pachauri, and
Indira Gandhi Institute of Developmental Research professor emeritus Kirit
Parikh have -- in separate communications -- informed the government that
they do not have the time to attend the committee's meetings.
The trio was absent from the committee's first meeting with DPC officials
held last week.
The Godbole committee was set up by the Maharashtra government to renegotiate
the deal with Enron.
Pachauri recently had said the state government had not consulted him before
he was named on the renegotiations panel.
The Maharashtra government set up the nine-member committee headed by former
bureaucrat Madhav Godbole on April 30 to renegotiate the controversial power
purchase agreement with the Enron-promoted Dabhol Power Company.
The committee has submitted an interim report and a final one is expected by
May 31.
The members now on the committee -- apart from Madhav Godbole -- are HDFC
chairman Deepak Parekh, state's energy secretary V M Lal, fertiliser
secretary and a representative of the Centre Anil Gokak, state finance
secretary S K Shrivastava and Maharashtra State Electricity Board chairman
Vinay Bansal.
The government said it had chosen Godbole to head the renegotiation team
since he had dealt with every detail of the 2,184-mw Dabhol Power Project.
Godbole was head of the Maharashtra state energy review committee which
recently submitted a report on the Enron project to the state government in
which he had strongly criticised the way the deal was conducted and had
recommended the renegotiation of the power purchase agreement with MSEB.
The state government employee said: "There is no point in reading too many
things in the development. These three members really don't have time. The
committee work will not hamper due to their decision to dissociate."

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

Panel to brief Gokak on Godbole plans on Wed
Our Bureau

05/16/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

NEW DELHI
THE COMMITTEE of joint secretaries, which is working in close co-ordination
with the Enron negotiation committee, will be holding a meeting on Wednesday
to brief the central representative A V Gokak on the Centres views on the
Godbole Committe recommendations.
The group of joint secretaries from concerned ministries like power,
petroleum, finance etc was formed to coordinate and form a consensus on the
Centres view vis-a-vis the recommendations of the Godbole committee and the
renegotiations that have now been initiated between Dabhol Power Corporation
and MSEB.
Gokak was appointed as the Centres representative on the renegotiation
committee. Since the recommendations of the Godbole committee have been taken
as some of the basic requirements and changes that could bring down tariffs,
the Centres stand on this issue will be viewed significantly.
Among the main things to be discussed would be to explore the possibility of
delinking the LNG facility from the power plant.

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

Settle Enron issue amiably: Munde
The Times of India News Service

05/16/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

PUNE: Former deputy chief minister Gopinath Munde has said that the US power
major Enron's exit from the Dabhol power project could have a negative impact
on investment prospects of the state.
Speaking to reporters here on Monday, Mr Munde said it was imperative to have
an amicable solution on the current impasse on the cost of power supplied by
the Dabhol Power Company.
"A confrontation on the power purchase agreement at such an advanced stage
may send wrong signals to investors," he added.
Asked about the growing financial burden on the state exchequer due to hefty
Enron bills, Mr Munde evaded a concrete reply on the pretext that his party
was not in power in the state at present.
The senior BJP leader minced no words in saying that his party would strongly
oppose any move by the state government to delink the 38 fringe villages from
the Pune Municipal Corporation limits. All the merged villages should stay
within the corporation, he emphasised.
Speaking on the drubbing his party received in the just concluded assembly
elections, Mr Munde said the party leadership had never expected miracles in
Tamil Nadu, West Bengal, Kerala and Pondicherry. "The BJP did have high hopes
in Assam, but unfortunately the popular verdict was not in its favour. The
party would analyse the reasons behind the debacle," he added.

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

Sharavathi power units inaugurated
The Times of India News Service

05/16/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

KARWAR: Chief Minister S.M. Krishna appealed to the courts of law on Tuesday
to ``speedily dispose of development-related litigation'' as such delays led
to huge cost escalation of infrastructure projects.
Speaking after switching on the 60 MW Units 1 and 2 of the Sharavathi
Tailrace Hydel Power Project at Jyothinagar, Gerusoppa (near Honnavar),
Krishna said that this particular project itself had been delayed by five
years because of the case filed against it in the Supreme Court by
environmentalists. ``The courts heard arguments in the Cogentrix case also
about an year ago, but there has been no judgement. Such delays lead to cost
escalations,'' he contended.
Krishna said plans to add about 200 MW of power every year were on the anvil.
``Gerusoppa units 3 and 4 will produce 60 MW by March 2002 along with the 210
MW Raichur Thermal Power Station (RTPS) unit 7. Almatti project 70 MW unit 1
and 220 MW unit 2 will be commissioned by December 2003. The 500 MW
Vijayanagara thermal power project will be operational by 2005, while the
Bidadi project will produce 700 MW by 2006,'' he outlined.
In the private sector, Krishna said the Tannir Bhavi barge-mounted plant
would produce 220 MW, while Jindal Tractible would supply 100 MW and Tata
Electric 80 MW. ``All these projects will involve an investment of over Rs
10,000 crdore and even after this the state will need more power,'' he
maintained.
Stressing on the need for low cost power, Krishna said the Cogentrix
agreement fell through only because of the ``exhorbitant'' purchase price
quoted by the American company. ``Maharashtra is in the python grip of Enron.
We have avoided this even in the case of the Almatti project, for which the
company, TAPCO had given a cost estimate of Rs 1,400 crore while the
Karnataka Power Corporation quoted only Rs 700 crore,'' he added.
Legislative Assembly and Council Opposition leaders Jagadish Shettar and K.H.
Sreenivas praised the KPC on its pro-active role in providing power to the
state. Karwar MP Margaret Alva and Industries Minister R.V. Deshpande
stressed on the need for improving the living conditions of the project
displaced people.
Meanwhile, Magsasay Awardee K.V. Subbanna of Heggodu rued that the agitation
against the project by environmentalists led by Shivaram Karanth and the
Pejawar Math pontiff had not borne fruit. ``One MW of Gerusoppa power has
eaten away a minimum of 10 hectares of fertile, evergreen forest of the
Sharavathi valley which was once full of medicinal plants and rich
bio-diversity. The KPC should at least take up an afforestation programme to
ensure that sufficient rains fall to fill up the dam and produce power,'' he
added.

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

Dunham, Lay, Raymond Among Few to Meet With Cheney on Energy
2001-05-16 00:01 (New York)

     Washington, May 16 (Bloomberg) -- Archie Dunham, chief
executive of Conoco Inc., told Vice President Dick Cheney that it
was time to stop using unilateral sanctions as a diplomatic weapon
against fuel-rich countries like Libya.
     Enron Corp. Chairman Kenneth Lay said he used his time with
the vice president to talk about how to open power markets.
     And Exxon Mobil Corp. CEO Lee Raymond made the case to Cheney
for reducing federal regulations.
     The three chief executives, all big contributors to President
George W. Bush, were able to make their case to a White House
energy task force at the highest level: Cheney is in charge of it.
And when the task force releases its report tomorrow, many of
their recommendations will be in it.
     No such access to Cheney was available for many others.
Leaders of environmental groups, including the Sierra Club and the
Natural Resources Defense Council, didn't make it onto Cheney's
calendar. Neither did California Governor Gray Davis, a Democrat,
who was told to submit a one-page memo.
     ``They bumped us to staff level,'' said Alys Campaigne,
NRDC's legislative director. ``That there was no outreach to the
CEOs of environmental groups is striking.''
     The task force is recommending a broad basket of ideas to
encourage domestic fuel production, including regulatory changes
that will make it easier to build more refineries, pipelines and
transmission lines; plans to promote more oil and gas exploration;
and tax credits to promote renewable energy sources like wind and
solar power.

                         `All Sides' Heard

     Juleanna Glover Weiss, Cheney's press secretary, says the
idea that the energy task force had a two-tiered system for
getting input is ``nonsense.'' She said Cheney had only about a
half dozen private meetings. ``The vice president has listened
carefully to all sides of the debate,'' she said.
     The administration has spurned congressional and
administrative inquires into whom top officials such as Cheney,
Energy Secretary Spencer Abraham and economic adviser Lawrence
Lindsey met with. To some, the meetings are simply further
evidence of the energy industry ties that both Bush and Cheney
brought to the job, and the support they have received from that
industry during the campaign -- roughly $2.9 million in
contributions, according to the Center for Responsive Politics,
which tracks campaign finance.
     ``Bush came in with goals and assumptions about energy that
played right into the business community,'' said Stu Rothenberg,
editor of the non-partisan Rothenberg Political Report.

                       Supply-Side Arguments

     Those who were willing to talk about their meetings with
Cheney described businesslike, formal sessions.
     Lay said that he discussed ``the whole issue of making
wholesale markets work better,'' a mantra for Enron, the country's
top wholesale power marketer. Cheney made no commitments, Lay
said, but he was sympathetic.  ``He fully understood,'' Lay said.
     Lay raised more than $100,000 for Bush during the campaign.
Enron contributed nearly $2.4 million to candidates, with 72
percent going to Republicans. The company was Bush's tenth-largest
contributor, at $113,800.
     Conoco's Dunham, who also raised more than $100,000 for Bush,
declined to discuss his March 21 talk with Cheney except to say he
expects the vice president will remain opposed to unilateral
sanctions. The issue is a big one for Conoco and other oil and gas
companies unable to tap large holdings abroad because of U.S.
sanctions in places like Libya and Iran.
     Exxon, Vice President Jim Rouse said that he and other
officials met for 30 minutes with Cheney Feb. 8 and 45 minutes
with the task force staff a week later.
     ``We don't want to wear out our welcome,'' he said. ``We had
a story to tell, we told it, that was it.''
     Exxon contributed nearly $1.4 million in campaign
contributions, with about 89 percent going to Republicans.

                  Complaints From Those Left Out

     For those denied access to the highest ranking members of the
task force, the process confirmed fears of being shut out.
     ``The energy industry is in the White House,'' said Anna
Aurilio, legislative director at the U.S. Public Interest Research
Group.
     Steve Maviglio, a spokesman for Davis, said California's
Democratic governor hasn't been allowed any more input than the
other 49 governors. Though the administration has contacted
California Republicans, Maviglio said ``There hasn't been a very
strong link engaging us in terms of the problems.''
     A coalition of environmental leaders from 32 organizations
known as the Green Group requested a meeting with Cheney to no
avail, though they did meet April 18 with Environmental Protection
Agency Administrator Christine Whitman.
     Later, the NRDC, a member of the group, filed formal requests
to learn whom task force members saw. It was denied and the group
is now appealing. Democratic representatives Henry Waxman of
California and John Dingell of Michigan, both members of the House
Energy and Commerce Committee, requested similar information. They
received a reply May 4 that Laura Sheehan, the committee's
Democratic spokeswoman, described as ``inadequate.''
     ``We just want to find out who's influencing them,'' said
NRDC lawyer Sharon Buccino, ``because it isn't us, the
environmental community.''


Here is the Enron Trading Manuel
----- Forwarded by Richard B Sanders/HOU/ECT on 06/09/2000 11:08 AM -----

	Jeffrey T Hodge
	06/07/2000 05:25 PM

		 To: Richard B Sanders/HOU/ECT@ECT
		 cc:
		 Subject: Risk Management Policy

FYI
----- Forwarded by Jeffrey T Hodge/HOU/ECT on 06/07/2000 05:24 PM -----

	Veronica Valdez
	06/06/2000 03:49 PM

		 To: Jeffrey T Hodge/HOU/ECT@ECT
		 cc:
		 Subject: Risk Management Policy

Per Ted Murphy, attached is the Risk Management Policy.

Veronica x31881


Attached please find a general outline, as well as a more detailed summary,
of the Enron Gloal LNG's key LNG contracts and projects.  I'll be referring
to these documents in our discussions this morning.  Please let me know if
you have any questions or comments.

Kind regards,
Dan


Irena:  my wife's name is Kathleen.


---------------------- Forwarded by Kay Mann/Corp/Enron on 01/02/2001 02:20
PM ---------------------------

"Campbell, Carolyn" <CCampbell@KSLAW.com> on 01/02/2001 02:05:34 PM
To: "'kay.mann@enron.com'" <kay.mann@enron.com>
cc: "'Ben.F.Jacoby@enron.com'" <Ben.F.Jacoby@enron.com>,
"'fred.mitro@enron.com'" <fred.mitro@enron.com>, "Keffer, John"
<JKeffer@KSLAW.com>

Subject: FW: Citibank Fees

Kay:

See the attached Citibank Schedule of Fees letter agreement.  Can ENA
provide wiring instructions for insertion into the Escrow Agreements.  Thank
you.

Carolyn M. Campbell
King & Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

-----Original Message-----
From: Paradee, Lari [mailto:Lparade@INTERGEN.com]
Sent: Tuesday, January 02, 2001 1:58 PM
To: Campbell, Carolyn
Cc: 'Lawrence, Estelle A'
Subject: FW: Citibank Fees

Carolyn,

Happy New Year!

Here is the Citibank Schedule of Fees updated with the "Waived for initial
setup" and the "F." in Ben's name.

Do you have the wiring instructions yet so I can put them in the escrow
documents and circulate those docs as final??

Thanks,
 Lari

 -----Original Message-----
From:   Steward, Shelly
Sent:   Tuesday, January 02, 2001 9:24 AM
To:     Paradee, Lari
Subject:        Citibank Fees

Good Morning Lari!

<<Citibank Schedule of Fees.doc>>

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

 - Citibank Schedule of Fees.doc


---------------------- Forwarded by Monique Sanchez/HOU/ECT on 11/10/2000
10:00 AM ---------------------------

Jojo Shakerdge <jshakerdge@natsource.com> on 11/10/2000 09:53:13 AM
To: "'monique.sanchez@enron.com'" <monique.sanchez@enron.com>
cc:
Subject: FW: The Perfect Man - HA!

-----Original Message-----
From: Anne-Marie Miser
Sent: Friday, November 10, 2000 10:41 AM
To: Jojo Shakerdge; 'jmeek@mhmrabv.org'; 'gonzalez@slinyc.com';
'iwalraven@vscatny.com'; 'lr822@aol.com'; 'keathley@crowley.k12.tx.us'
Subject: FW: The Perfect Man - HA!

Subject: The Perfect Man - HA!

The perfect man is gentle,
Never cruel or mean;
He has a beautiful smile,
And keeps his face so clean.
The perfect man likes children
And will raise them by your side.
He will be a darn good father
And a husband to his bride.

The perfect man loves cooking,
Cleaning and vacuuming, too.
He'll do anything in his power
To show his love to you.

The perfect man is sweet,
Writing poetry in your name.
He's a best friend to your mother
And kisses away your pain.

He never makes you cry
Or hurt in any way.
Oh,this stupid poem...
The perfect man is gay.


The reason for the memo before was because the India guys still don't
understand.  Hopefully this clears up their ideas about a separate marketing
and trading shop in India.

Have you had time to think about Russell Dyke?

Jeff


Richard:

As you can see below, I just replied to Mark instead of forwarding to you.  Credit is not throwing you off.  They did send a revised worksheet.  I have turned around comments and they have been reviewed by a lawyer.  I have completed finalizing the comments, but since AA sent their agreement in pdf (which cannot be edited), I have had to turn around a hard copy of our comments.  Can you give me a physical address where I can overnight our comments?

Thanks!

Marie

 -----Original Message-----
From: 	Heard, Marie
Sent:	Monday, October 22, 2001 9:20 AM
To:	Taylor, Mark E (Legal)
Subject:	RE: American Airlines ISDA

Richard:

Credit is not throwing you off.  They did send a revised worksheet.  I turned around comments and they have been reviewed by a lawyer.  I am working on finalizing our comments to send back to AA today.

Marie

 -----Original Message-----
From: 	Taylor, Mark E (Legal)
Sent:	Monday, October 22, 2001 9:15 AM
To:	Heard, Marie
Subject:	FW: American Airlines ISDA

Marie - can you please check on this and let Richard know where we stand.  Thanks!

 -----Original Message-----
From: 	Friedman, Richard
Sent:	Friday, October 19, 2001 4:02 PM
To:	Taylor, Mark E (Legal)
Subject:	American Airlines ISDA

According to credit, the AA ISDA worksheet was sent back to legal last week. Have you seen it or are they throwing me off?

Rich Friedman
Enron Global Markets LLC
richard.friedman@enron.com
713-853-5137


Here's the scoop.
Name of Restaurant: Rooster
Address: 1101 Valencia Street, cross street is 22nd.
Meeting Time: 6:45pm. Everybody needs to be present in order to be seated by
7:00pm. Please ensure that you make it on time.
Parking Garage: 21st between Valencia and Mission. They charge $1 per hour.
It is really hard to get parking after 6:30pm.
We have to buy wine from the restaurant. Rooster just has wine and beer
available.
If you haven't RSVP'd and would like to come please let us know so we can
update the reservation. Final numbers are due tomorrow.
See you Saturday!

-----------------------------------------------
For reference, your link to this Invite is:

http://www.evite.com/r?iid=IZQJKGQVUXMBSBKUZOKM

Delivered by: http://www.evite.com

----> Send an Invite for Your Next Get-Together!
It's super easy, and 100% free. Click below to create your own Invite:
http://www.evite.com/csplash?li=egi

48484848


This confirms our agreement we reached today that we will start the meeting
at 930am Central.

Kay

From: Suzanne Adams@ECT on 03/07/2001 02:14 PM
To: Sheila Tweed/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron, Roseann
Engeldorf/Enron@EnronXGate, Lisa Bills/Enron@EnronXGate, Scott
Dieball/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Brian D
Barto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dean Russell/SF/ECT@ECT, Bill
Williams/PDX/ECT@ECT, Ben Jacoby/HOU/ECT@ECT, Ed B Hearn III/HOU/ECT@ECT,
p.thompson@andrews-kurth.com, stephen.swift@ps.ge.com,
michael.barnas@ps.ge.com, kent.shoemaker@ae.ge.com, Bob Carter/HOU/ECT@ECT,
John G Rigby/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: GE Meeting Friday, March 9, 2001

This is a reminder that the GE meeting will take place Friday, March 9, 2001,
from 9:00 a.m. to 11:30 a.m. CST in EB30C2.  The dial-in information is as
follows:

Dial In: 1-888-232-3866

Participant: 304279

Host (Sheila): 730800

Please give me a call at 713-853-7340 if you have any questions.  Thanks!
Suzanne


I'm getting hourly updates.  I haven't talked to John today.  Carlos tell you
about the security guard by HR?

	From:  Kathleen Carnahan                           02/08/2001 11:34 AM

To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Re: Did you know

Debbie went to Paper.  And I was wondering why Reagan has been "full of
himself" lately.

Carlos filled me in on the stuff "over yonder".  My, My, My.

K-

Kay Mann
02/08/2001 11:27 AM
To: Kathleen Carnahan/NA/Enron@Enron
cc:

Subject: Re: Did you know

Scooped me on Ray.  I like him.

I heard Debbie Chance is transferring to another group, and that Reagan is
going to be an originator (not a developer).

	From:  Kathleen Carnahan                           02/08/2001 11:20 AM

To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Did you know

that Ray Hoppe is leaving (if not already gone)?  Think he is going to Duke.

K-


asshole

John J Lavorato@ENRON
12/23/2000 10:51 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject:

john

I cant' seem to make my gambling problem go away.

bills +3 250
denver -7 250
jack +3 1/2 250


What's your offer price?  Have you gotten any bids?

 -----Original Message-----
From: 	"Tom Williford" <t-willy@t-willy.com>@ENRON
Sent:	Sunday, October 21, 2001 7:18 PM
To:	Weldon, V. Charles
Subject:	Re: tickets

Thanks for the reply and it's nice to hear from you.  Thanks for the
compliment as well.

These tickets are in the A&M section which unfortunately are never the best
seats in the house.  They are in the endzone.

Tom Williford '92

----- Original Message -----
From: "Weldon, V. Charles" <V.Charles.Weldon@ENRON.com>
To: <t-willy@t-willy.com>
Sent: Friday, October 19, 2001 12:16 PM
Subject: tickets

> T-Willy,
>
> I met you at A&M during fraternity rush in the late 80's.  I've never
> forgotten you as you were pretty darn funny as I best recall.  Anyway,
> glad to hear you are doing well.  I'm heading to Lubbock and am
> interested in your tickets if you still have them.  What yard line are
> they on?
>
> Thanks,
>
> Charlie Weldon
> Class of '90
>
>
> **********************************************************************
> This e-mail is the property of Enron Corp. and/or its relevant affiliate
and may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
> **********************************************************************
>


The attached news release was issued by the NYISO today, 9/18/01 -

NEW YORK ISO WELCOMES FERC ALJ'S SUPPORT OF ITS APPROACH TO NORTHEAST RTO
MARKET INTEGRATION - However, NYISO Also Emphasizes Governance Remains A
Major Question Mark -

This news release can also be found on the NYISO website at:

http://www.nyiso.com/topics/articles/index.html

(See attached file: nr_09_18_01_ferc_alj_rpt.pdf)
 - nr_09_18_01_ferc_alj_rpt.pdf


[IMAGE]
 Anna Kournikova Exclusive Fantasy Offer!  Save 10% on Anna's 2002 Calendar! Yes 12 months of Anna!  Simply enter the coupon code FNTSYCAL in step 5 of the checkout process to receive your discount.  Offer expires 11/30/01.  http://www.sportsline.com/links/6/1/135/sffer1120tr.cgi   Attention Fantasy Fans!  Subscribe to The Sporting News  now and get 4 FREE issues! Hurry!   Brought to you by   Sponsorship Bar You are receiving these e-reports because you have signed up for CBS SportsLine.com Fantasy Football.  To customize, reschedule, or turn off these reports please  click here    NFL Reports, Player Updates  [IMAGE]Latest NFL Player News  Keenan McCardell , WR JAC - Neal/McKay Updated 11/25/01 McCardell caught six passes for 80 yards against Baltimore. He has certainly raised the level of his play in recent weeks, and should be a solid Fantasy player down the stretch as opponents continue to focus on Jimmy Smith.  Stacey Mack , RB JAC - Hunter Updated 11/25/01 Mack rushed for 50 yards and two TDs and caught five passes for 45 yards against the Ravens. Despite his good outing, Mack remains a Fantasy risk be! ca! use of his inconsistency.   Qadry Ismail , WR BAL - Bass/Hull Updated 11/25/01 The Jaguars held Ismail to three catches for 44 yards. Despite his quiet statistical performance, Ismail remains a must-start player for any Fantasy team. He is one of the most complete and underrated receivers in the AFC.  Jason Brookins , RB BAL - Tori Updated 11/25/01 Brookins rushed for 82 yards and two TDs at Jacksonville, but also lost a fumble. The rookie RB is talented, but too erratic to be a Fantasy starter on most teams right now. Ron Dayne , RB NYG - Neal/McKay Updated 11/25/01 Dayne carried the ball six times for 26 yards against Oakland. Don't depend on him for good numbers during the remainder of the season.  Tiki Barber , RB NYG - Neal/McKay Updated 11/25/01 Barber rushed for 124 yards and a TD against Oakland, and caught five passes for 41 yards. He has played well recently, although his owners would still like to see him score on a more consistent basis.  LaDainian Tomlinson , RB SD - Hunter Updated 11/25/01 Tomlinson was held out of the end zone, but he had a good day against Arizona nonetheless. The rookie tailback had 145 scrimmage yards, including 13 receptions, in San Diego's 20-17 loss.   Doug Flutie , QB SD - Russell Updated 11/25/01 Flutie had a solid game, throwing for 308 yards and two touchdowns against Arizona. However, he's only worth starting when the matchup is to his advantage.   Jake Plummer , QB ARI - Frank Updated 11/25/01 Plummer had a decent outing on Sunday, posting 241 yards and a touchdown against San Diego. Plummer, who also threw two picks, is only a reserve Fantasy quarterback at best.   David Boston , WR ARI - Bass/Hull Updated 11/25/01 Boston had another outstanding game, catching six passes for 121 yards and a touchdown against San Diego. He's one of the most reliable Fantasy receivers in the league, and is worth starting on a weekly basis.   Willie Jackson , WR NO - Martin Updated 11/25/01 Jackson had ! a ! good outing against New England, catching five catches for 78 yards and a touchdown. He may not be the most dependable Fantasy receiver, but he is worth starting in deeper leagues.   Joe Horn , WR NO - Matty Updated 11/25/01 Horn had another solid outing, catching four passes for 97 yards against New England. He's been a very dependable receiver in recent weeks and is worth starting on a weekly basis.  Tyrone Wheatley , RB OAK - Giggles Updated 11/25/01 In his return from a knee injury, Wheatley carried the ball five times for 17 yards. Zack Crockett was used more often in short-yardage packages, and Wheatley does not appear capable of starting for any Fantasy team in the near future. Even when he is fully healthy, he may not be able to take many carries away from Charlie Garner.  Antowain Smith , RB NE - JWillie Updated 11/25/01 Smith had 153 yards of total offense and two touchdowns against New Orleans. After a slow start, Smith has become a pretty good weekly option for Fantasy Footballers  Tom Brady , QB NE - Martin Updated 11/25/01 Brady put up huge numbers against New Orleans, posting 258 yards passing and four touchdowns. He's become a pretty reliable Fantasy player, and his performance will likely keep Drew Bledsoe on the Patriots' bench for another week.  Rich Gannon , QB OAK - Martin Updated 11/25/01 Gannon threw for 221 yards, three TDs and no interceptions against the Giants. He ignored rain-soaked conditions, and continued to look like the most reliable QB in Fantasy Football.  Frank Sanders , WR ARI - Free Agent Updated 11/25/01 Sanders left Sunday's game against San Diego after re-aggravating a hamstring injury. He was replaced by MarTay Jenkins, and did not return to the game.  Eric Moulds , WR BUF - Bass/Hull Updated 11/25/01 Moulds finally emerged from an extended slump, catching six passes for 196 yards and two TDs against Miami. He also lost a fumble, and Fantasy owners should still remember that Moulds has been a disappointment for most of the year. Don't be surprised if he follows his best outing of the year with a mediocre performance.  Alex Van Pelt , QB BUF - Free Agent Updated 11/25/01 Van Pelt had another fine game, throwing for 309 yards, three TDs and one interception. He is definitely merits strong Fantasy consideration as long as he remains in Buffalo's starting lineup.  Oronde Gadsden , WR MIA - Matty Updated 11/25/01 Gadsden caught eight passes for 118 yards at Buffalo. He did not catch a TD pass, though, and lost a fumble. Gadsden is too unreliable to start for most Fantasy teams in these important final weeks.  Jay Fiedler , QB MIA - Tori Updated 11/25/01 Fiedler threw for 262 yards, three TDs and no interceptions at Buffalo. His performance may have quieted talk of a QB controversy, but Fiedler is still too inconsistent to be a dependable Fantasy QB.  Donovan McNabb , QB PHI - Russell Updated 11/25/01 The Redskins held McNabb to 92 passing yards and 39 rushing yards, with no TDs or interceptions. Expect the Philadelphia QB to rebound quickly from such a quiet performance.  James Thrash , WR PHI - Frank Updated 11/25/01 Thrash caught four passes for 32 yards against Washington. He is too ! in! consistent to be a starter on better Fantasy teams as the playoffs approach.   Rod Gardner , WR WAS - Free Agent Updated 11/25/01 Gardner caught four passes for only 33 yards on Sunday. The rookie has slowed down considerably in the past few weeks, and now seems like a risk during the Fantasy homestretch.   Ki-Jana Carter , RB WAS - Free Agent Updated 11/25/01 Carter saw extensive action on Sunday as Stephen Davis played through back problems. He carried 18 times for 56 yards, and is a good backup to have if Davis in on your Fantasy team. Davis has always been known to battle minor injuries.  Isaac Byrd , WR CAR - Free Agent Updated 11/25/01 Byrd started in place of the injured Muhsin Muhammad on Sunday. He posted decent Fantasy numbers in Muhammad's absence, catching five passes for 69 yards in Carolina's 10-7 loss to Atlanta.   Muhsin Muhammad , WR CAR - Martin Updated 11/25/01 Muhammad missed! S! unday's game against Atlanta due to a shoulder injury. His status for next weekend's game against New Orleans is unknown at this time.   Derrick Alexander , WR KC - JWillie Updated 11/25/01 Alexander caught two passes for 56 yards in his return from a rib injury. He was not open often, and Alexander may continue to be a Fantasy disappointment if he stays healthy.  Chris Chandler , QB ATL - Free Agent Updated 11/25/01 Chandler had a subpar game on Sunday, throwing for only 132 yards against Carolina. The Falcons chose to attack Carolina with their ground game, which was the reason for Chandler's poor Fantasy numbers.   Derrick Alexander , WR KC - JWillie Updated 11/25/01 Alexander caught two passes for 56 yards in his return from a rib injury. He was not open often, and Alexander may continue to be a Fantasy disappointment if he stays healthy.  More Updates  Transactions, View&nbsp!  [IMAGE]     [IMAGE] Make Selection   [IMAGE]       [IMAGE] There are no League Transactions which meet the selected criteria.  To see all league transactions select "All", "All", "All Teams" from the Transactions, View page.      Schedule, Breakdown  [IMAGE] Matty Player Pos Points Brooks, Aaron  QB 21.0 Faulk, Marshall  RB 0.0 Pittman, Michael  RB 10.0 Gadsden, Oronde  WR 11.0 Horn, Joe  WR 9.0 Stokes, J.J.  WR 10.0 Janikowski, Sebastian  K 4.0 Giants  DT 2.0   [IMAGE] TOTAL   67.0   [IMAGE] Griese, Brian  QB 10.0 Smith, Rod  WR 8.0 Chapman, Doug  RB 0.0 Glenn, Terry  WR 0.0 Johnson, Brad  QB 0.0 Wycheck, Frank  TE 13.0   [IMAGE] at Hunter Player Pos Points Warner, Kurt  QB 0.0 Green, Ahman  RB 26.0 Tomlinson, LaDainian  RB 14.0 Freeman, Antonio  WR 8.0 Johnson, Kevin  WR 17.0 Morton, Johnnie  WR 6.0 Vanderjagt, Mike  K 3.0 Chargers  DT 9.0   [IMAGE] TOTAL   83.0   [IMAGE] Jackson, Darrell  WR 6.0 Stewart, James  RB 10.0 Jackson, James  RB 4.0 Mack, Stacey  RB 21.0 Pinkston, Todd  WR 1.0 Robinson, Marcus  WR 0.0   [IMAGE]  Copyright 2001 Commissioner.COM Inc and SportsLine.com Inc. Your site can be reached from http://fantasy.sportsline.com   FB10SP


If you would like for me to send cards to your customers, please provide me
with a list of their names and addresses by next Friday, 11/17.  I will get
the amount of cards as per however many customer names I am given.  I will
then have everyone sign one card so that I can send it out to get the
signatures lasered on the customer's cards.  I've already spoken with the
others on the desk, and they either aren't interested or they've gotten their
primary assistants to take care of it.

Elsa, as we've previously discussed, I can use the list that we just recently
updated.  Please let me know if you are going to select people from that
list, or if you are just going to send a card to everybody on it.

Thanks guys,
Laura


I've been out of town, and have back-to-back meetings/conference calls.  I'll
call you though.

Kay

From: Carlos Sole@ENRON_DEVELOPMENT on 10/20/2000 12:55 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject:

You weren't kidding -- no lunch today?


Hi Guys,

Sorry - had this typed up Monday but spaced on sending
it out to the group. Better late than never....

-Anil

__________________________________________________
Do You Yahoo!?
Talk to your friends online and get email alerts with Yahoo! Messenger.
http://im.yahoo.com/
 - Perfect_F2F_Notes.doc


Make sure we don't lose these two to Jeff.  Call Celeste and tell them that
we have place them in gas.
---------------------- Forwarded by John J Lavorato/Corp/Enron on 08/15/2000
07:27 AM ---------------------------

Jeffrey A Shankman@ECT
08/10/2000 04:06 PM
To: David W Delainey/HOU/ECT@ECT
cc: John J Lavorato/Corp/Enron@Enron, Gwendolyn Petteway/HR/Corp/Enron@ENRON,
Celeste Roberts/HOU/ECT@ECT

Subject: Re: New Associates

In the fundamentals group under Hunter, there is also research going on
regarding LNG, and distillates, (and gas, weather, etc).  Vikas' background
is in crude and products, and worked at Aquiva with two of Lagrasta's
marketers.  I agreed to take him (6 months ago) and was planning for him to
research crude/products.  Celeste Roberts knows the conversations we had with
Vikas in particular becuase he wanted to start meeting people in my group and
originally did not come through the associate program, where we finally put
him, and she was involved from the beginning.  Li Sun is a Wharton MBA that
Lavo did not originally pick when he went through the list with you, and was
slated to go elsewhere.    I picked her up, after that, and she too is
someone about whom Celeste and I had many conversations. I had met her last
summer, and at Wharton recruiting events.  Prior to John's coming down
Celeste and I had agreed she could come into my organization (gas) to do
research, or to work with Vince--she is an unbelievable modeler.  I have no
idea who the other two are or where they are going, and have not met either
of them.

I suspect now that we have delineated recruiting and staffing, which occurred
recently, we won't have this confusion among the associate program
administrators again.

Not trying to kill you,

Jeff

David W Delainey
08/10/2000 03:08 PM
To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: New Associates

Jeff, you are killing me - we targeted that group specifically to build the
risk business in gas and east power in the short run.  This was well planned
effort.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 08/10/2000
03:00 PM ---------------------------

Gwendolyn Petteway@ENRON
08/10/2000 02:54 PM
To: John J Lavorato/Corp/Enron@Enron, David W Delainey/HOU/ECT@ECT
cc: Jana Giovannini/HOU/ECT@ECT, Nedre Strambler/HOU/ECT@ECT
Subject: New Associates

Dave and John, I spoke to Jeff Shenkman and he has indicated that the
following new associates are to support him in his role in Global Markets:

Dustin Collins
Vikas Dwivedi
Li Sun

Although Jeff mentioned a fourth associate, these are the only 3 that are
identified in our system.

John after speaking with you, it is clear that you have not been in contact
with Jeff regarding these associates supporting him.

Dave, can we discuss this matter?  I can be reached at 713/853-7351.  My
pager # is 1-800-980-1665.  Thanks.


<<MF June 5th 2001.pdf>>

			Good Tuesday Morning - Comments From The Local Guys!

Abbreviated Letter Today.

The 30-year US T-Bond yield is 5.65%.
The 10-year note yield is 5.28%.
The 5-year is trading at 4.84%.
Spot crude oil is trading at $28.09 p/b.
Natural Gas - Henry Hub -  is trading at $3.95 p/mcf.

			AD Time:

New Federal Insider-Trading Rule (Rule 10b5-1) have been adopted by the SEC
under the Securities Exchange Act of 1934. This rule greatly enhances an
insider's/employee's ability to trade his/her corporate shares during
blackout periods.
Previously, without the protection of this new SEC rule, employees and
insiders could safely trade only outside of designated blackout windows.
Under this new rule, insiders/employees may have the ability to purchase and
sell their corporate shares even during blackout periods if a written plan
was established and in force when the insider/employee was not in possession
of material, non-public information.
The new rule contains other restrictions and should be reviewed carefully.

Lehman Brothers has established a turn-key plan that take into account the
regulatory procedures for establishing such a plan.    Please email us or
call us for more information.

				Lehman Brothers' Research.

IMPACT CALLS
J.C. Penney(JCP) 1 - Strong Buy J. Feiner, .212.526.2322
Raising Rating, Price Target and EPS Estimates
OLD NEW STREET P/E
Price: $20.68 EPS 2000 N/A -$0.44 N/A N/A
52 Wk Ra: $23 - 9 EPS 2001 $0.30E $0.35E $0.29E 59.1
Mkt Cap: $5.7B EPS 2002 $0.65E $0.75E $0.72E 27.6
FY: 1/31 Price Target N/A $33
Rank 2 1
*Eckerd Alone is Worth More than Current Price. We are raising our
investment rating on JC Penney to 1 - Strong Buy
from 2 - Buy and setting a 12-month price target of $33 per share. Our
upgrade is based on two key factors: 1) an EBITDA valuation
for Eckerd that indicates that JCPs drug store business is worth more than
its current overall stock price, and 2) an improving
competitive position for department stores over the longer term.
*We are increasing 2001 and 2002 EPS estimates to reflect expected
improvements from CEO Allen Questroms strategy to restore
operating profit at both drug and dept. stores. Goals are to grow drug and
department store EBIT to 4.5% and 6.0% of sales over the
next 3-5 years, respectively, through merchandising and expense initiatives.
Our estimates are $0.35 for 2001 and $0.75 for 2002.
*We believe management has correctly identified Eckerd as the catalyst with
the strongest near-term potential to impact profit. Our
12-month price target of $33 incorporates a valuation of $25 for Eckerd and
a conservative $8 for the department stores.

FOCUS STOCKS
Check Point Software(CHKP) 2 - Buy I. Hernandez, .415.274.5395
Mixed Bag of 2Q Channel Checks (C)
OLD NEW STREET P/E
Price: $49.29 EPS 2000 N/A $0.84 N/A N/A
52 Wk Ra: $119 - 40 EPS 2001 $1.38E $1.38E $1.33E 35.7
Mkt Cap: $12.9B EPS 2002 N/A N/A $1.75E N/A
FY: 12/31 Price Target $70 $70
Rank 2 2
*Based on mixed feedback from mid-quarter channel checks and continued
competitive concerns, we encourage investors to remain
on the sidelines despite recent weakness in the stock.
*Channel checks conducted over the past 3 days suggest a modestly improving
environment. Strength in education and government
verticals being offset by weakness in financial services.
*VPN market remains fiercely competitive with Cisco, Nortel, Netscreen and
others establishing larger presence, especially in the fast
growing site-to-site VPN market. Greater competition likely to cap upside
potential over near-term as economy slows.
*Issue of premium pricing being raised as customers look at alternative
offerings in order to extract savings from their IT budgets.
While not the differentiating factor, price is becoming more relevant to
purchasing decision as competitive offerings improve.

Comverse Technology(CMVT) 1 - Strong Buy T. Luke, .212.526.4993
Yet Another Impressive Quarter; Reit 1 Strong Buy (C)
OLD NEW STREET P/E
Price: $59.59 EPS 2000 N/A $1.47 N/A N/A
52 Wk Ra: $125 - 45 EPS 2001 $1.78E $1.79E $1.47A 33.3
Mkt Cap: $11.6B EPS 2002 $2.12E $2.12E $1.78E 28.1
FY: 1/31 Price Target $85 $85
Rank 1 1
*Last night, wireless messaging and enhanced services leader Comverse
delivered yet another impressive quarter. We reiterate our 1
Strong Buy rating.
*Revenues of $365M beat our $356M est, as a solid performance from the CNS
unit offset an expected decline in the InfoSys unit.
Sales of new applications are now more than 20% of CNS.
*EPS of $0.43 beat our $0.42 est with gross margins remaining at a record
level of 62.6%.
*Mgmt raised 2Q guidance to $370M from $365M, although 'mindful' of the
macro environment. The key backlog metric increased
again to $325M from $320M.
*We believe investors may be encouraged by the uptick in backlog, growth in
new data apps, the rise in guidance, and mgmt's more
optimistic view of 2.5G timing. Our 2001 ests move to $1.79 from $1.78. We
believe investors may pay a premium for consistency.
Target - $85 (40x '02 est of $2.12).

Xilinx, Inc(XLNX) 3 - Market Perform D. Niles, .415.274.5252
No change to revs but GMs lowered (C)
OLD NEW STREET P/E
Price: $41.59 EPS 2001 N/A $1.14 N/A N/A
52 Wk Ra: $98 - 30 EPS 2002 $0.76E $0.76E $0.72E 54.7
Mkt Cap: $14.6B EPS 2003 $1.11E $1.11E $1.02E 37.5
FY: 3/31 Price Target N/A N/A
Rank 3 3
*Xilinx had no change to revs guidance of minus 15-25% q/q though they are
tracking to the lower end because we believe they felt
most investors understood that already. Regardless, this will be viewed as a
positive. The real key will be June given almost 40% of
the revs still need to be done. Junes momentum will also drive the guidance
for CQ3.
*Their newer Virtex-E product line (near 30% of revs) is doing better than
expected but due to the poorer gross margins GMs will be
surprisingly at the lower end of the prior 58-60% range. The margins
guidance was given because most investors were not focused
on this like the revs. More aggressive cost controls is expected to keep EPS
unchanged.
*As we noted in our preview, cancellations and pushouts have slowed with
turns better in May but this follows the end of April/early
May which was poor. With investors expecting CQ3 q/q rev growth, this will
be the key. With the BtB still below 1.0, this will be a
tough goal to achieve.

COMPANY/INDUSTRY UPDATES
Kellogg Co(K) 3 - Market Perform A. Lazar, .212.526.4668
KBL Management Positive on Integration. Maintain Rating.
OLD NEW STREET P/E
Price: $26.58 EPS 2000 N/A $1.55 N/A N/A
52 Wk Ra: $31 - 22 EPS 2001 $1.25E $1.25E $1.24E 21.3
Mkt Cap: $10.8B EPS 2002 $1.35E $1.35E $1.36E 19.7
FY: 12/31 Price Target $26 $26
Rank 3 3
*We recently met with Keebler senior management to assess integration into
Kellogg -- a near term risk and overhang on the shares.
We came away more comfortable with the process.
*First, management appeared more confident with DSD transition, noting it
would already know of any big glitches at this time.
*Second, retail inventory draw down process of Kellogg convenience items is
essentially done (ahead of schedule) with levels having
been reduced from 5 to 2 weeks.
*Third, 100 new DSD sales reps have been hired and should ramp up quickly
given 100% commission structure. We believe other
industry transactions have aided the hiring process.
*Biscuit category remains rational as competitors also occupied with
integration. Accordingly, category growth may slow. Impact of
integration on core Keebler business remains largest risk. Plus, shares
trade at only modest discount to peers.

Autos & Auto Parts N. Lobaccaro, .212.526.2842
Ford Overtakes GM for Highest Inventory "honors"
*Due to GM's unexpected (and incentive-driven) sales increase in May, Ford
has captured the dubious honor of having the highest
inventory levels in the industry, a position GM has defended for years.
*While inventory levels at this time of year average roughly 63 days, Ford's
stand at 68 days, with cars well below normal levels, but
trucks well above normal levels at 78 days.
*GM inventories came in at 62 days overall, well below its 6-month average
of 89 days. While inventory levels would have been
expected to decline in May due to the seasonal increase in the unit sales
pace, the decline was greater than anticipated due to GM's
higher than expected sales, which may not be sustainable.

David C. Morris
Sr. VP Lehman Brothers
713-652-7112/800-227-4537
dcmorris@lehman.com

Disclosure Legend: A-Lehman Brothers Inc. managed or co-managed within the
past three years a public offering of securities for this company. B-An
employee of Lehman Brothers Inc. is a director of this company. C-Lehman
Brothers Inc. makes a market in the securities of this company. G-The
Lehman Brothers analyst who covers this company also has position in its
securities.
Key to Investment Rankings: This is a guide to expected total return (price
performance plus dividend) relative to the total return of the stock's local
market over the next 12 months. 1 = Strong Buy (expected to outperform the
market by 15 or more percentage points); 2=Buy (expected to outperform
the market by 5-15 percentage points); 3=Market Perform (expected to perform
in line with the market, plus or minus 5 percentage points); 4=Market
Underperform (expected to underperform the market by 5-15 percentage
points); 5=Sell (expected to underperform the market by 15 or more
percentage
points).
This document is for information purposes only. We do not represent that
this information is complete or accurate. All opinions are subject to
change.
The securities mentioned may not be eligible for sale in some states or
countries. This document has been prepared by Lehman Brothers Inc., Member
SIPC, on behalf of Lehman Brothers International (Europe), which is
regulated by the SFA. ?Lehman Brothers, Inc.

------------------------------------------------------------------------------
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 - MF June 5th 2001.pdf


(See attached file: hpl0606.xls)

 - hpl0606.xls


Good morning sweatheart. Its really hard for me to be away from you.  I think about you all the time.  I love to sleep next to you and wake up with you in the morning.  I really wanted to stay with you Saturday night.  Maybe I can work something out for this weekend.  Love you.

 -----Original Message-----
From: 	Harris, Steven
Sent:	Monday, October 22, 2001 8:39 AM
To:	Geaccone, Tracy
Subject:

Hi beautiful. I had a hard time yesterday because I missed you so much (in case you couldn't tell). The more we are together the more I love you and want to spend all my time with you. I can't wait to see you.

Stan's staff meeting was cancelled so I am just trying to catch up on things this morning.

Love you sweetie.


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how bout today at 400

From: Jennifer Fraser/ENRON@enronXgate on 03/21/2001 09:55 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: fundamentals thought dimensions

when can i come by and have a detailed discussion with you re fundamentals--i
am very interested in your opinions and i dont get here them in the TR meeting

Jen Fraser
Enron Global Markets Fundamentals
713-853-4759

 -----Original Message-----
From:  Arnold, John
Sent: Tuesday, March 20, 2001 8:36 PM
To: Fraser, Jennifer
Subject: Re: FW: LNG Weekly Update

Looks good.  certainly an area we need more focus on.  Obviously the most
important aspect of lng is how much gas is coming in, what is that relative
to last year, and what new capacity is coming longer term.
As an aside, nat gas trades as a funciton of the storage spread to last year
and five year averages.  It would be very useful if all fundamental analysis
were geared the same way.  The fact that lng shipments are x this week is
meaningless.  the fact that they are y delta of last year is extremely
useful.  if you noticed in the fundies meeting, i was trying to move
discussion that way.  what's switching vis a vis last year.   whats
production relative to last year.  it simplifies the fundamental analysis.

From: Jennifer Fraser/ENRON@enronXgate on 03/12/2001 05:46 PM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: FW: LNG Weekly Update

An initial effort--please comment

 << File: LNG20010312.pdf >>


David Theroux at the Independent Institute in Oakland, California became concerned over Enron's involvement in this project, so he has decided to fund the project internally.

He anticipates that the letters will go out to economists around the country when the school year starts (just several weeks away in some places) and hopes to complete the project by October.  They got around 540 economists for their health care price cap letter.  It will be interesting to see how many signatures they get for electricity price caps.  I sent him our draft letter, and he is massaging the language between wholesale price decontrol and the use of real-time pricing at retail.

I offered the use of our university contacts to help gather signatures, but I don't know if he will even want in-kind help.  Anyway, we can do something else with the $30,000 that we were going to try to funnel to them.

- Rob

 -----Original Message-----
From: 	David Theroux <DTheroux@independent.org>@ENRON [mailto:IMCEANOTES-David+20Theroux+20+3CDTheroux+40independent+2Eorg+3E+40ENRON@ENRON.com]
Sent:	Thursday, July 19, 2001 3:44 PM
To:	rbradle@enron.com (Ropb Bradley)
Subject:	Hello

Dear Rob,

We have been pursuing the possibility of addressing the matter of
price controls as they pertain to electricity markets as we have done
in the past with our other Open Letters.

But in doing so, we would only pursue the matter independently
without the involvement or support of any businesses or other
organizations in this or related fields.

Best regards,

David
--
David J. Theroux
Founder and President
The Independent Institute
100 Swan Way
Oakland, CA 94621-1428
510-632-1366 Phone
510-568-6040 Fax
DTheroux@independent.org
http://www.independent.org


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Sara -

David Arpi of the Port of Oakland is interested in looking at the ISDA.  Ed
Sacks in Credit will send you the credit profile.  We have already sent the
EEI to him and he is reviewing it (Shari Stack is the physical lawyer working
on it).  Let me know if you have any questions - you can reach David at
510-658-8393.  Thanks for your help.

Stewart


Don:
I put in a call to Kinder/Morgan this morning.  I have not heard back from
Anthony Lannie, who will be heading up this process for them.  Again, I think
they will be interested, but probably through a joint bid with Southern.    I
will continue to follow up with these guys to measure there interest.
Ben


From the attached, it looks like the URG decision is being accelerated.


CGoering@nyiso.com writes to the NYISO_TECH_EXCHANGE Discussion List:

The NYISO is reserving hours beginning 00:00 - 23:00 in the May 2, 2001
Real-Time Market as well as the following hours per ECA20001006B to verify
prices:

PJM: 01:00 - 03:00, 05:00, 08:00, 21:00, 22:00
OH:  05:00, 08:00, 21:00, 22:00
HQ:  05:00, 07:00, 08:00, 21:00, 22:00
NE:  03:00 - 06:00, 08:00, 13:00, 21:00 - 23:00

Prices in the May 3, 2001 Day-Ahead Market are correct.

This e-mail information is a copy of the official posting which can be found
at
the following address on our website:
http://mis.nyiso.com/public/htm/OperMessages/CurrentOperMessages.htm#mm


Attached is the final Duque decision. It is the clean version of the draft I
faxed on 8/21.

---------------------- Forwarded by Bruno Gaillard/SFO/EES on 08/24/2000
11:40 AM ---------------------------

"Daniel Douglass" <douglass@ArterHadden.com> on 08/23/2000 09:38:31 PM
To: <JBarthrop@electric.com>, <mnelson@electric.com>,
<rschlanert@electric.com>, <Bruno_Gaillard@enron.com>, <kmagrude@enron.com>,
<mpetroch@enron.com>, <susan_j_mara@enron.com>, <athomas@newenergy.com>,
<Jeff.Hanson@phaser.com>, <anchau@shellus.com>, <andrew.madden@utility.com>,
<ben.reyes@utility.com>, <chris.king@utility.com>, <david.bayless@utility.com>
cc:
Subject: Fwd: Decision 00-08-037 (Signed 8/21/00)

In case you didn't receive the final version of the decision voted out on
Monday approving the Duque "rate stabilization plan," here it  is.? The Wood
and Lynch dissents will be sent separately.
?
Dan
Date: Wed, 23 Aug 2000 17:25:38 -0400
From: "White, Ann" <abw@cpuc.ca.gov>
Subject: Decision 00-08-037 (Signed 8/21/00)
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_7A22EA27.04653675"

?
?
 - Ivy.gif
 - CPUC01-#77888-v-1-I0008002_Carew_Letter.DOC


The leadership situation in Japan is always relatively volatile and this
period is no exception.  Following a further political gall by the PM over
the North Korean hostage situation and ongoing adverse media attention on his
cabinet, it is likely that the PM and his senior cabinet will be replaced
within weeks, if not days.

As a matter of protocol the successors to the Prime Minister and Minister of
State, Nakagawa, will keep the appointments set by the predecessors.  The
focus is more on the position than the individual - so the Minister of State
will open the office in the name of the PM whether it is Nakagawa or someone
else.  Similarly, Mr Lay will have a meeting with the PM whether it is Mori
or his successor.

Fortunately, we have very good relationships with the person most likely to
be the next PM of Japan - Mr Katoh - and the person who will most likely be
the next head of the Governing LDP - Mr Kamei.  Both Mr Katoh and Mr Kamei
have indicated that they will attend the office opening.

As mentioned in my previous note, we had anticipated that the budget
legislation would have been passed well before the office opening.  I also
mentioned that the budget is likely to pass on the 31st or 1st.  One possible
scenario on the timing for the replacement of Mori is immediately after the
budget legislation is passed.  That timing would be problematic for us, as
most senior politicians would be focused on the change of leadership during
that period.

I will keep you informed as the political situation develops.


Please find attached Credit's EOL responses for 3/9/00.

Regards,
Molly