Team,
These are some points for discussion on the conference call next week.
In todays market, I think we all can agree that the profitability is there,
the only hurdle might be environmental or the potential for two phase flow.
If we could start with these points for discussion, and come to some
resolve on these issues, we can move to the logistics of the project.

   Results of the modeling conducted on the pipeline identifying the
   potential two phase flow. ( Ken Chow)
   Potential environmental concerns. (Emissions, Possible accumulation of
   liquid, Disposal of potential liquid).
        ( Larry Campbell )

Sense this project will be taking advantage of peaks in the market, the
most logical answer is to make this equipment portable. If we plan on long
term benefits at the California border, this could be a permit installation
with a pipeline hookup from a new rail facility in Needles. But, other
areas might be identified like inlets to power plants that justify portable
equipment with NGL supplied by truck. Supplying the butane by truck from
rail facility's like the one in Mohave, might also be a way to get the
project in Needles on-line sooner. Just some topic's for discussion.

   Natural Gas and NGL Pricing projections. ( Kevin Hyatt )
   Alternate points to inject the butane. ( Norm Spalding, Earl Chanley )
   Rail car leasing and availability. ( Randy Lagrimini, Larry Garrett )
   Rail carriers in the area, cost of transportation. ( Randy Lagrimini,
   Larry Garrett )
   Trucking companies in the area and cost of transportation. ( Randy
   Lagrimini, Larry Garrett )
   Mohave rail rack. ( Larry Garrett )
   Rail Rack construction cost. ( Randy Lagrimini, Rick Suderman )
   Pipeline construction cost from rail rack to injection point. ( Randy
   Lagrimini, Rick Suderman )
   NGL Storage cost. ( Rick Suderman )

If there is anything I have missed or need to add, let me know

Conference call number   (877) 795-3687
Code Number         625465
The call is set for 10:00 am Central Time Tuesday 1-30 but if it does not
affect anyone's schedule, I would like to change it to Wednesday 1-31.  Let
me know if this works

See you then
Rick


Hi, Jay:

It's your friendly pest AGAIN!!!!!!!!

Do you have an address for me for Southern California and have you found out anything about "Petro-Hunt L.L.C." and "Petro-Hunt Corporation being the same entity?

Thanks!

Marie


We did the following with KCS Energy yesterday:

We bought a Apr02/Oct02 NYmex swap at 4.02 for 10,000 mmbtu/d, setle last day.
If any month settles below $2.50, there is no payment due KCS for that reference month. Effectively the quantity becomes zero. above $2.50 it behaves like a regular swap.

this transactions should be booked from a risk perspective as three separate pieces:

1) We buy from KCS a regular Apr02/Oct02 swap @4.02, 10,000/d

2). We buy from KCS an Apr02/Oct02 Nymex put struck at $2.50, settling last day, 10,000/d, zero premium.

3). We buy from KCS an Apr02/Oct02 digital option that results in a payout to Enron of $1.52 if the reference month settles below $2.50, 10,000/d, last day, zero premium.

Against this trade:

I sold an Apr02/Oct02 swap to John Arnold @3.81

I sold an Apr02/Oct02 $2.50 put to Maggi for $.07 last day.

I will hold the digitals which I will atttach a model using exotica add-ins to value.

please try to get this in my P/L tonight.

Thanks.


---------------------- Forwarded by Andrea Ring/HOU/ECT on 03/08/2001 04:36
PM ---------------------------

	From:  Karen D McIlvoy                           03/07/2001 09:40 AM

To: Barry.Belcher@PSS.boeing.com
cc:  (bcc: Andrea Ring/HOU/ECT)
Subject: Leaving Early...

---------------------- Forwarded by Karen D McIlvoy/HOU/ECT on 03/07/2001
09:42 AM ---------------------------

Elizabeth Rivera@ENRON
03/06/2001 09:14 AM
To: Ragan Bond/Corp/Enron@ENRON, Karen D McIlvoy/HOU/ECT@ECT
cc:
Subject: Leaving Early...

>  Three women all worked in the same office with the same female boss.
>Each
>  day, they noticed the boss left work early. One day, the women decided
>  that, when the boss left, they would leave right behind her.
>
>  The brunette was thrilled to be home early. She did a little gardening,
>  spent playtime with her son, and went to bed early.  The redhead was
>  elated to be able to get in a quick workout at the spa before meeting a
>  dinner date.
>
>  The blonde was happy to get home early and surprise her husband, but when
>  she got to her bedroom, she heard a muffled noise from inside.  Slowly
>and
>  quietly, she cracked open the door and was mortified to see her husband
>in
>  bed with her boss! Gently, she closed the door and crept out of her
>house.
>
>  The next day, at their coffee break, the brunette and redhead planned to
>  leave early again, and they asked the blond if she was going to go with
>  them. "No way," the blonde exclaimed. "I almost got caught yesterday!"
>


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   Word of the Day for Thursday March 21, 2002:

   logorrhea \law-guh-REE-uh\, noun:
   Excessive talkativeness or wordiness.

     By  his  own  measure,  he is a man of many contradictions,
     beginning with the fact that he is famous as a listener but
     suffers  from  "a  touch of logorrhea." He is so [1]voluble
     that one wonders how his subjects get a word in edgewise.
     --Mel  Gussow,  "Listener,  Talker, Now Literary Lion: It's
     Official." [2]New York Times, June 17, 1997

     It's also not good if your date has logorrhea.
     --Monte  Williams,  "8  Minutes  in  the  Life  of a Jewish
     Single:  Not  Attracted? Next!" [3]New York Times, March 5,
     2000

     Mr.  King,  who  possesses  an  enviable  superabundance of
     imagination, suffers from a less enviable logorrhea.
     --Michele  Slung,  "Scare  Tactics." [4]New York Times, May
     10, 1981
     _________________________________________________________

   Logorrhea  is  derived  from  Greek logos, "word" + rhein, "to
   flow."

References

   1. http://dictionary.com/wordoftheday/archive/2002/02/17.html
   2. http://www.nytimes.com/
   3. http://www.nytimes.com/
   4. http://www.nytimes.com/

_._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._._

You are currently subscribed to Dictionary.com Word of the Day as:
matt.motley@enron.com

To subscribe to the list by email, send a blank message to:
join-WordoftheDay@lists.lexico.com

To unsubscribe via email, send a blank message to:
leave-wordoftheday-357530C@lists.lexico.com

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http://www.dictionary.com/wordoftheday/
(C) 2002 by Lexico Publishing Group, LLC.


Please see the attached letter to Senator Wyden.  I am also sending a hard
copy by regular mail.

(See attached file: Wyden Letter re Information Release 022601FINAL.doc)

 - Wyden Letter re Information Release 022601FINAL.doc


Clint see if this seems to match the formula in the contract in your opinion.

 - availgraphs.xls


---------------------- Forwarded by Darron C Giron/HOU/ECT on 02/28/2001
11:24 AM ---------------------------

Scott.Crowell@us.cgeyc.com on 02/28/2001 10:30:44 AM
To: GBauer@mtlm.com, drewbeckman@hotmail.com, jcarlisle@carltonstaffing.com,
colirma@yahoo.com, jennifer.fowler@kaiseral.com, mike.fultz@halliburton.com,
dgiron@enron.com, chad.glessman@bankofamerica.com, bret_hat@swbell.net,
Dawn.C.Kenne@enron.com, jennifer_kern@yahoo.com,
Crystal_Kettle@neimanmarcus.com, jay_liberman@ml.com,
Phillip.M.Love@enron.com, tracy.manders@oracle.com,
MikeMullen@mail.house.gov, jnagy@intraspect.com,
ValerieParker@carltechinc.com, PattiS7@aol.com, srasmussen362@earthlink.net,
CRoberson@ASAPSC.COM, leslie.salyer@lyondell.com, sassytxn7@aol.com,
csiddons@comscore.com, rsole@us.oracle.com, philipsutton@yahoo.com,
mikepthomas@yahoo.com, sheri.thomas@enron.com, bentsuch@yahoo.com,
bigluv54@aol.com, nmw14@yahoo.com, slsdfy@earthlink.net,
nateandmichelle@home.com
cc:
Subject: Recall  [CGEY Virus checked]

Funny!

Scott Crowell
Cap Gemini Ernst & Young Consulting
Senior Consultant - Oracle High Growth

214.665.5751  office
214.543.9093  cellular

----- Forwarded by Scott T. Crowell/CGEY/EYLLP/US on 02/28/2001 10:28 AM
-----

                    "Timothy
                    Bose"                To:     "Kern, Jennifer"
<Jennifer.Kern@aocnet.com>,
                    <bosetb@minds        <Scott.Crowell@us.cgeyc.com>
                    pring.com>           cc:
                                         Subject:     Recall  [CGEY Virus
checked]
                    02/27/2001
                    09:44 PM
                    Please
                    respond to
                    "Timothy
                    Bose"

I know that you two will appreciate  this

Tim
(See attached file: Vibrator Recall.mp3)

______________________________________________________________________
The information contained in this communication is intended solely for the
use of the individual or entity to whom it is addressed and others
authorized to receive it. It may contain confidential or legally privileged
information. If you are not the intended recipient you are hereby notified
that any disclosure, copying, distribution or taking any action in reliance
on the contents of this information is strictly prohibited and may be
unlawful. If you have received this communication in error, please notify
us immediately by responding to this email and then delete it from your
system. Cap Gemini Ernst & Young is neither liable for the proper and
complete transmission of the information contained in this communication
nor for any delay in its receipt.
 - Vibrator Recall.mp3


Great - that all sounds about like what I'd expected. Thanks for the
multiple-terminal-server tip. Again, I'm more than happy to help get this
forward obligation report up to speed and producing the kind of data we need
- just let me know.

Thanks,
Kate

Cara Semperger
02/12/2001 03:48 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: Desk-to-Desk v. Cross-Portfolio

I just sent Kroum a little missive on our familiarity with the "killed"
feature, as well as why we often zero out deals (Transmission in particular)
in scheduling only. If I have to teach a course on scheduling for him to
understand how to build this report I will do it, but I am not really dying
to do that.

As far as our situation here, If you can properly kill a deal, you should do
that instead of just zeroing the volume. I quite often have great success
having many terminal server sessions open at once, and doing the slow stuff
through a few different channels of TS.  Even as we speak, I am running one
report for 6 different months, 1 in each of the 5 terminal severs, and one
locally.  I learned that trick in our old winframe system, and it has served
me well.

I have torn my hair out over this cross-portfolio vs cross-desk thing.  I
have explained it to both Kroum, Duong Luu, and Will each at least 3 times.
How hard is it to get the concept that anything we sell to ourselves is not a
physical deal?

I would say just keep sending them to me, so we don't all have to pull our
collective hairs out. The deal you reference below is kind of like a life
preserver thing. When the market makes a sudden move, it is sometimes faster
to 'hit' the deal through EOL then pull it on the traders side.  It's not the
best way to go, but better than losing a bunch of money.

c

   Kate Symes                02/12/2001 03:35 PM

To: Cara Semperger/PDX/ECT@ECT
cc:
Subject: Desk-to-Desk v. Cross-Portfolio

I'm not quite sure how this exchange began, but it sounds like Kroum is
referring to several different issues here. First of all, our forward
obligation report does not reflect cross-portfolio deals, an application
issue that Will Smith, and it looks like Kroum as well, has been working on
for the past few weeks.

Also, deal 498488 is a forward deal done on EOL between STSW and their own
desk. I haven't seen a trade WITHIN a desk before, but I'm sure anything is
possible. At any rate, this doesn't look like a cross-portfolio deal at all.
Am I missing something?

As for the zeroed out deals, I'm pretty sure everyone here knows how to
properly kill deals in Enpower; however, it takes so long that sometimes we
simply zero out the volume in the interest of time. I've often wondered if
this litters the system and makes it more confusing for other people to do
their jobs - do you know anything about that?

I just thought I'd ask these questions while the subject was being raised.
Please let me know if I can help facilitate these changes or improvements in
any way.

Thanks,
Kate
---------------------- Forwarded by Kate Symes/PDX/ECT on 02/12/2001 03:18 PM
---------------------------
From: Kroum Kroumov/ENRON@enronXgate on 02/12/2001 11:02 AM CST
To: Cara Semperger/PDX/ECT@ECT
cc: Monica Lande/PDX/ECT@ECT, Kate Symes/PDX/ECT@ECT

Subject: RE: FW: FWDOBL

             Cara,

      I think the report should work that way even now.

     I think I found a deal like that 498488 between EPMI Southwest and EPMI
Southeast,
     Region R7, please take a look at that when you test the report.

       I saw lots of deals on the report with volume 0 and price 0, they were
entered that way
       in Portland. There might be another reason, but I think someone wanted
to kill the deals.
       There is an option in Deal Entry to do that, if one opens a deal and
right click with the
       mouse on the status (Done), one can kill a deal.

           Kroum

 -----Original Message-----
From:  Semperger, Cara
Sent: Thursday, February 08, 2001 1:06 PM
To: Kroumov, Kroum
Cc: Lande, Monica; Symes, Kate
Subject: Re: FW: FWDOBL

The "two sides of a cross-portfolio deal" language is a bit vague and
misleading. A cross-portfolio deal is kind of like a desk to desk deal.
Another Enron book has traded with one of ours.

Two important things need to happen with cross-portfolio deals.
 1. They need to only show on the forward obligation report when "Desk to
Desk" is selected.
 2. They are only financial in nature, no physical delivery is ever done
cross portfolio.

I don't think "both sides" is correct. We need to only see our buy or our
sale when we query for our point.  When the other portfolio queries their
stuff, they should see their side.

C

From: Kroum Kroumov/ENRON@enronXgate on 02/08/2001 11:36 AM CST
To: Cara Semperger/PDX/ECT@ECT
cc:
Subject: FW: FWDOBL

        Cara,

     This is all I have so far. I would appreciate your help to make it
clearer.

     If you find a deal No like that, I think it will make my job easier.

     Thanks,
     Kroum

 -----Original Message-----
From:  Project Manager<Unknown.Man@enron.com>@ENRON
[mailto:IMCEANOTES-Project+20Manager+3CUnknown+2EMan+40enron+2Ecom+3E+40ENRON@
ENRON.com]
Sent: Thursday, February 08, 2001 10:31 AM
To: Kroumov, Kroum
Subject: FWDOBL

Forward Obs should show two sides of a Cross-Portfolio deal.  Find out what
needs to be done.  Contact Monica
Lande or Kate Symes in Portland for more details


I will ask Dan to coordinate for EIM Legal Group.   Julia

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

	Gerald Nemec
	05/15/2001 11:19 AM

		 To: Travis McCullough/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Lance
Schuler-Legal/HOU/ECT@ECT
		 cc: Jeffrey T Hodge/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT, Mark E
Haedicke/HOU/ECT@ECT
		 Subject: Summer Clerks

We have two Summer Clerks coming in this summer which we have hired through
the Houston Bar Association Minority Recruitment Program.   Majed Nachawati
will be starting Monday May 21st.  He will be here 6 weeks and Alisha Mahibar
will start on July 2 and be here the final 6 weeks.

Enron Corp. also has hired two law summer clerks from UT .  These clerks will
be doing 4 week rotations throughout Enron and we will have them each for a
four week  period.  Dates are still being finalized.

Samantha Ferguson, an HBA law clerk from last summer, will again support the
Global Market group this summer.

I would like to have a point person from each of your groups with the charge
of getting these clerks involved in the project flow for each group.  My plan
is to have these clerks work with two groups during their time here with the
groups rotating during the summer.  Please, consider who in your groups would
be best suited for this role and provide feedback as soon as possible.  I
will take this role for the East Origination-Gas Trading group.  Thanks for
all your help.


$0 for centers


Ken Lay has a video message for you about the Chairman's Award on "Up Front."  Please go to "Up Front" at http://home.enron.com/upfront/ to access it.  An audio option and transcript are available for employees who cannot access the video.

"Up Front" will feature open, honest and timely video messages from the Office of the Chairman and Enron management about what's going on around the company.

If you encounter technical difficulties, please contact your IT technical support representative.


CALENDAR ENTRY:	APPOINTMENT

Description:
	Jennie-Vacation

Date:		2/13/2001
Time:		8:00 AM - 8:00 AM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


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please copy and paste the following link into your web browser or
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Ok, Great.

I'm in class tonight, but will be working on the case today
around lunch. Sounds like tomorrow AM may be a better
time for a conf call - after everyone sends around their
analysis to each other. I'll take a crack at putting it all
together - as I am relatively free tomorrow.

- Anil

-----Original Message-----
From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com]
Sent: Wednesday, January 31, 2001 5:56 AM
To: Sama, Anil
Cc: 'chin@haas.berkeley.edu'; 'dasovich@haas.berkeley.edu';
'guinney@haas.berkeley.edu'
Subject: Re: First Write-Up due for Financial Information Analysis

Greetings:

I'm in the group (and traveling on the East Coast, returning late tonite).
I can do a conference all today if folks would like.  Otherwise, I'll be
working on it on the plane back tonite and will distribute when I get home
or first thing in the AM.

Best,
Jeff

"Sama, Anil"

<anil.sama@in        To:
"'guinney@haas.berkeley.edu'"
tel.com>             <guinney@haas.berkeley.edu>,

"'chin@haas.berkeley.edu'"

01/30/2001           <chin@haas.berkeley.edu>,

11:35 PM             "'dasovich@haas.berkeley.edu'"

<dasovich@haas.berkeley.edu>

cc:

Subject:     First Write-Up due for
Financial
Information Analysis

Hey Guys,

Just sat down to read about the first write up that is due
this Thursday, and realized that this is supposed to be a
group assignment!!  Ooops - I had no idea... Did you ;-)
Anyone read the case and/or taken a crack at it? Should
we try and co-ordinate a conference call?

Carolyn is out for the week and excused from the
assignment - just had a baby girl last Fri!!
Jeff, did you hear from teacher if OK to join ?

-Anil


Here are the revisions that I mentioned that Paul provided earlier today:

Revise the second sentence of Certain Proprietary Rights  to:

"The Purchase Agreement will include an exhibit listing other transactions
involving assets in the Specified Geographical Area, which transactions are
pending or under development by Seller, including those developed by the
Transferred Employees, and are evidenced by a written agreement between a
third party and Seller.

Thanks.  Eva.


----- Forwarded by Tana Jones/HOU/ECT on 01/16/2001 09:29 AM -----

	Walter Guidroz@ENRON
	01/13/2001 10:02 AM

		 To: Camille Gerard/Corp/Enron@ENRON, Mary G Gosnell/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON, Tanya Rohauer/HOU/ECT@ECT,
Paul Radous/Corp/Enron@ENRON, Tom Moran/HOU/ECT@ECT, Bradley
Diebner/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Frank
L Davis/HOU/ECT@ECT
		 cc:
		 Subject: ClickPaper approvals, 1-12-01

Attached are ClickPaper approvals for January 12, 2001.


Hi there,

Any comment?

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 02/12/2001 10:49
AM ---------------------------

lee.johnson@ss.ps.ge.com on 02/12/2001 10:44:39 AM
To: kay.mann@enron.com, peterthompson@akllp.com
cc: paulpipitone@akllp.com, chriscobb@akllp.com, kent.shoemaker@ae.ge.com,
lee.johnson@ss.ps.ge.com

Subject: RE: City of Austin Breakout Agreement

Kay,

The guaranteed performance values in section 10 have been edited, & I'm not
sure why.

I'm not sure who to go to on the Technical side of your team.  Maybe Eric
Booth can explain, but months ago Bruce Golden and I discussed whether the
guarantee values should be revised for site conditions. The decision was
made that a site  specific guarantee was not needed, that it would be
acceptable to correct for the difference in elevation (sea level to 435 ft)
and exhaust losses (6" to 12" backpressure).

I'd prefer to stay the course.  However, if there is now a compelling reason
to change, I'd like to request the guarantee based on the revised basis
conditions given in Appendix A and verify these performance values.    (We
don't have a record of supplying these numbers.) Our guarantee process
usually takes several days to a week, depending on the backlog of requests
in house.

Please let me know asap.

Thanks,

Lee

-----Original Message-----
From: Thompson, Peter J. [mailto:peterthompson@akllp.com]
Sent: Monday, February 12, 2001 9:04 AM
To: Kent. Shoemaker (E-mail); Lee. Johnson (E-mail)
Cc: Kay Mann (E-mail); Pipitone, Paul; Cobb, Chris
Subject: City of Austin Breakout Agreement

   Pursuant to Kay Mann's instructions, attached please find a
clean copy of the most recent version of the City of Austin Agreement
(the second document below), as well as a blackline showing changes from
the last version circulated on December 14.  The Agreement deletes
references to specific performance guarantees for combined cycle plants.
The Agreement now has the exhibits rolled in. To complete the agreement,
we need to include the date of execution, the addresses and contacts for
Sections 25.1 and 25.3, and Exhibit H-2.
 <<CRO- City of Austin/GE Facility Agreement Versions 3 to 4.DOC>>
<<Gas Turbine Agreement Draft of 12/13/00.DOC>>


Nope.  I think Gloria is though.  I know Victor is but he is out the rest of
this week.


Start Date: 3/2/01; HourAhead hour: 17;  No ancillary schedules awarded.
Variances detected.
Variances detected in Generation schedule.
Variances detected in Energy Import/Export schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030217.txt

---- Generation Schedule ----
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 17 / Preferred:  29.00 / Final:   0.00)
  TRANS_TYPE: FINAL
  SC_ID: ARCO
  MKT_TYPE: 2
  TRANS_DATE: 3/2/01
  UNIT_ID: CARBGN_6_UNIT 1
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 17 / Preferred:  18.00 / Final:   0.00)
  TRANS_TYPE: FINAL
  SC_ID: DELANO
  MKT_TYPE: 2
  TRANS_DATE: 3/2/01
  UNIT_ID: PANDOL_6_UNIT

---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 17 / Preferred:  75.00 / Final:   3.60)
  TRANS_TYPE: FINAL
  SC_ID: ECTstNW
  MKT_TYPE: 2
  TRANS_DATE: 3/2/01
  TIE_POINT: SYLMAR_2_NOB
  INTERCHG_ID: CISO_EPMI_3000
  ENGY_TYPE: FIRM
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 17 / Preferred:  75.00 / Final:   3.60)
  TRANS_TYPE: FINAL
  SC_ID: ECTltNW
  MKT_TYPE: 2
  TRANS_DATE: 3/2/01
  TIE_POINT: SYLMAR_2_NOB
  INTERCHG_ID: CISO_EPMI_6000
  ENGY_TYPE: FIRM


Mike

As per my voice mail message sent today, please find enclosed the new Credit Policy being proposed by SPP (to be effective December 15). I would like to go over this document with you to identify:
	-	Commercially relevant changes, if any
	-	Changes in the information flow between Enron and SPP (i.e. they require communication regarding material changes 		in financial conditions, downgrade of short term debt rating, etc.)
	-	Identify who else should be involved in this discussion (i.e. Christi suggested Bill Bradford)

I will be in the office on Tuesday and Wednesday. Or from Monday (after 11am) on.

Luiz Maurer

x 38945


All:  I would like to take Friday, Sept. 29 as a vacation day.  Please advise
if there are any conflicts.  Thanks.  Sara


The report named: West VaR <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=36&report_name=West+VaR&category_cd=2&category_name=WEST&toc_hide=1&sTV1=2&TV1Exp=Y&current_efct_date=11/12/2001>, published as of 11/12/2001 is now available for viewing on the website.


Notice # 01-113
March 30, 2001

TO:
ALL NYMEX/COMEX DIVISION MEMBERS
ALL NYMEX/COMEX DIVISION MEMBER FIRMS
ALL NYMEX/COMEX DIVISION CLEARING FIRMS
ALL NYMEX/COMEX DIVISION OPERATION MANAGERS

FROM:
George Henderson, Vice President
Michael Campanelli, Vice President

RE:
April ATOM Processing Schedule

DATE  BUSINESS DAY  EVENT

4/2  1   Preliminary ATOM reports
4/4  3   Last day for adjustments.
4/5  4   Final ATOM reports.
4/6  5   CMs debited for brokerage.
4/10  7   NYMEX gets confirmation of available      Funds in escrow account
and initiates
     Transfer to Brokers.
4/11  8   Funds are deposited to broker accounts.

4/12   9   Brokers who check their morning
     Balances will see the ATOM deposits
     Reflected in their bank balances.

NOTE:
Broker enrollments for May cycle must be received by the Membership
Department no later than 10:00 A.M., on April 27, 2001.

If you have any questions regarding NYMEX, please contact Juan Serrano or
Gerard Taibi at (212) 299-2626.
If you have any questions regarding COMEX, please contact David Sherman at
(212) 299-2061

__________________________________________________
Please click on the link below to indicate you have received this
email.

"http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&
refdoc=(01-113)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.


(See attached file: hpl0923.xls)

 - hpl0923.xls


This deal is in as firm energy with an SP delivery point.

Thanks!


FYI.  Thanks. Lynn
---------------------- Forwarded by Lynn Blair/ET&S/Enron on 06/05/2001 07:20 AM ---------------------------

Tangie Dykes
06/04/2001 03:05 PM
To:	Debbie Moseley/ET&S/Enron, Dan Fancler/ET&S/Enron
cc:	Lynn Blair/ET&S/Enron@ENRON, Rick Dietz/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Alice Johnson/ET&S/Enron@ENRON

Subject:	Oneok's Strangers Gas Payment $820,000

Debbie

Northern has received a payment $820,000 for Strangers Gas.  The dollars were
placed under Oneok Field Services, SAP account number 4000003626 .  Would
you please apply the dollars.

Thank you


Suzanne:
I need to schedule a 1 hour meeting with Julia to talk about maternity leave
issues.  Could you please work with her secretary to set something up next
week?  Thanks.
Carol


Wisconsin Gas to Purchase Nine Mile Line From Northern Natural Gas
PR Newswire, 07/13/01

Commodities Review: LME Copper Hit By Another Stock Rise
Dow Jones Commodities Service, 07/13/01

LME Base Metals: Copper Pressured Down By Stock Build
Dow Jones Commodities Service, 07/13/01

UK: Telecoms, drugs drive FTSE 100 rally, Vodafone leads.
Reuters English News Service, 07/13/01

Futures Contract Covering Coal Debuts in New York (Correct)
Bloomberg, 07/13/01

Enron: Panacea or Pariah?
Modern Metals, July 2001

Wisconsin Gas to Purchase Nine Mile Line From Northern Natural Gas

07/13/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

Line Will Enhance Competition in Southeast Wisconsin and Use Existing
Facilities

MILWAUKEE, July 13 /PRNewswire/ -- Wisconsin Gas, Northern Natural Gas and
Guardian Pipeline announced today that Wisconsin Gas has signed an agreement
with Northern Natural Gas (NNG) to purchase a nine mile, high pressure
natural gas pipeline in Walworth and Waukesha counties. The purchase price is
$5 million. The proposed transaction will require approval from federal and
state regulators. The pipe, known as the Eagle line, is located southeast of
the Kettle Moraine Forest near Eagle, Wis.
The existing line has been part of the NNG interstate transmission system.
Under the new ownership, the line will become part of the Wisconsin Gas
distribution system and will interconnect with Guardian Pipeline as well as
the NNG system.
"Northern Natural Gas is pleased to be a part of a creative, cost-effective
solution to provide additional gas service to southeastern Wisconsin," said
Dave Neubauer, vice president of business development and marketing, Northern
Natural Gas. "This transaction enables Wisconsin Gas and its customers to
obtain natural gas supplies from Guardian or NNG. Providing reliable,
economical choices for consumers will benefit all of the parties involved."
"We saw this as an opportunity to minimize environmental impact and still
realize the benefits of increased competition in the natural gas market,"
said James Schott, senior vice president, Wisconsin Gas. "The purchase of the
Eagle line will enable Wisconsin Gas to further our goal of providing
cost-efficient natural gas service to our customers."
As a result of the purchase Guardian Pipeline, the 141-mile interstate
pipeline from Joliet, Ill. to Ixonia, Wis., will no longer build an 8.5-mile
lateral to Eagle. The lateral was part of the originally certified Guardian
Pipeline. This portion of the line would have generally run parallel to the
current Northern Natural pipeline.
"This sale is a win-win situation for Guardian and consumers," said George
Hass, project manager of Guardian Pipeline. "The Eagle line purchase by
Wisconsin Gas saves Guardian time and resources by taking away the need to
build the 8.5-mile lateral and allows all three companies to create a better
environment for competition in the natural gas marketplace."
The existing gate stations at LaGrange and Eagle will remain in-service for
regulation purposes. Odorization and measurement will take place at a new
gate station that will be constructed at the interconnect with Guardian. This
new gate station will be called the Bluff Creek station and will be located
near Whitewater. The Bluff Creek gate station will be constructed during the
construction of Guardian Pipeline.
Northern Natural Gas, a subsidiary of Enron Corp., with a market area
capacity of about 4.3 Bcf/d, provides natural gas transportation services to
utility customers in the upper Midwestern United States through its
approximately 16,000 miles of pipeline.
Guardian Pipeline is a partnership of three Midwestern energy companies: CMS
Energy, based in Dearborn, Mich.; Wisconsin Energy, headquartered in
Milwaukee, Wis.; and Viking Gas Transmission Co., a wholly owned subsidiary
of Xcel Energy Inc., and located in St. Paul, Minn.
Wisconsin Electric-Wisconsin Gas, the principal utility subsidiary of
Wisconsin Energy Corp. (NYSE: WEC), serves more than one million electric
customers and more than 960,000 natural gas customers throughout Wisconsin
and Michigan's Upper Peninsula. Visit our company's Web site at
www.WE-WG.com. Learn about Wisconsin Energy Corp. by visiting
www.WisconsinEnergy.com
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X86200271

/CONTACT: Media only: Kelly Farr of CMS Energy, 313-436-9253; or Megan
McCarthy of Wisconsin Energy, 414-221-4444; or Gina Taylor of Northern
Natural Gas, 713-853-7681/ 17:01 EDT

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

Commodities Review: LME Copper Hit By Another Stock Rise
By Mark Long and Steve McGrath
Of DOW JONES NEWSWIRES

07/13/2001
Dow Jones Commodities Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- Copper futures traded in London fell Friday, as a
further influx of stocks into official warehouses put the copper market under
pressure and dragged down the rest of the base metal complex.
Three-month copper traded on the London Metal Exchange ended $6 down from
Thursday's late kerb close at $1,554.50 a metric ton.
An increase of 7,475 tons of copper into LME warehouses Friday brought total
stocks up to a 12-month high of 550,300 tons. This pressured prices in early
trade down to test $1,550/ton support, although prices recovered slightly in
later trade.
Unconfirmed market talk said Enron is behind much of the week's stock rise,
in an effort to ease nearby supply tightness and to alleviate the large short
positions it is thought to have built up on the July-for-a-week spread, which
is currently showing a $6-$8/ton backwardation. The July futures contract
will switch over to cash Monday.
Enron declined to comment on the market talk Friday.
A backwardation is a pricing structure in which deliveries to be made in the
near future are more expensive then those set for a more distant delivery.
The opposite situation is called contango.
"The spreads are still tight. The major longs are still reluctant to lend,
with no signs of that (tightness) dissipated," said Kevin Norrish, an analyst
with Barclays Capital in London.
Dealers and analysts said they expect further stock increases next week.
The entire base metals complex ignored Thursday's 237-point rally in the Dow
Jones Industrial Average, dealers said.
"Copper has been sensitive to moves in the stock market, but not this time,"
Norrish said. In fact, now it appears that base metals markets ignore
equities markets when they rally, but follow stocks down when they slump, he
added.
European Grain Futures See Profit-Taking, But More Gains Expected
European grain and oilseed futures were hit by a bout of profit-taking and
pre-weekend position-squaring Friday, after rising to long-time highs,
brokers said.
However, world and domestic crop concerns, the strength of the dollar and
general bullish sentiment will carry the markets to fresh highs short term,
they said.
On the London International Financial Futures and Options Exchange, the
benchmark November feed wheat contract ended just 25 pence up at GBP82/ton,
after hitting a new two-year high of GBP83/ton in early trade.
Meanwhile, Matif November rapeseed futures fell EUR2.75 on the day to
EUR265/ton, after hitting a three-year high of EUR271/ton in early trade.
The U.K. wheat crop and the French rapeseed crop are forecast to be well down
on last year, and wheat and canola crops in some other major producing
countries are also expected to fall.
Meanwhile, the strength of the dollar is allowing European grain and oilseed
traders to up prices and still remain competitive against U.S. imports and
dollar-denominated grains on the world market.
-By Mark Long and Steve McGrath, Dow Jones Newswires; 44-20-7842-9358;
mark.long@dowjones.com

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

LME Base Metals: Copper Pressured Down By Stock Build

07/13/2001
Dow Jones Commodities Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LONDON -(Dow Jones)- London Metal Exchange three-month copper ended Friday's
late kerb lower compared with Thursday, pressured by another stock build,
dealers said.
(LME three-month metals prices in dollars a metric ton at 1600 GMT, with the
previous late kerb close in parentheses. Comex copper at 1641 GMT in cents a
pound, with the previous close in parentheses.) Copper 1,554.50 (1,560.50)
Tin 4,452.50 (4,502.50)
Aluminum 1,452.25 (1,458.50) Zinc 871.50 (877.50)
Nickel 5,925.00 (6,012.50) Lead 462.50 (465.00)
Comex Sep Copper 70.75 (70.80)
An increase of 7,475 tons of copper Friday brought total stocks up to a
12-month high of 550,300 tons. This pressured prices in early trade down to
test $1,550/ton support before rising slightly to close at $1,554.50/ton,
down from Thursday's close of $1,560.50/ton.
Unconfirmed market talk said Enron is behind much of the week's stock rise,
in an effort to ease nearby supply tightness and to alleviate the large short
positions it is thought to have built up on the July-for-a-week spread, which
is currently showing a $6-$8/ton backwardation. The July futures contract
will switch over to cash Monday.
Enron declined to comment on the market talk.
A backwardation is a pricing structure in which deliveries to be made in the
near future are more expensive then those set for a more distant delivery.
The opposite situation is called contango.
"The spreads are still tight. The major longs are still reluctant to lend,
with no signs of that (tightness) dissipated," said Kevin Norrish, an analyst
with Barclays Capital in London.
Dealers and analysts said they expect further stock increases next week.
The entire base metals complex ignored Thursday's 237-point rally in the Dow
Jones Industrial Average, dealers said.
"Copper has been sensitive to moves in the stock market, but not this time,"
Norrish said. In fact, now it appears that base metals markets ignore
equities markets when they rally, but follow stocks down when they slump, he
added.
Aluminum also ended the late kerb lower Friday.
News of the restart of some smelters has dampened sentiment, despite a stock
drawdown of around 8,000 tons since the end of last week, dealers said.
"The stock drawdowns are fairly small percentage-wise," said Standard Bank
analyst Robin Bhar, adding that they would need to be much larger to
significantly improve market sentiment.
"A test of $1,435/ton cannot be ruled out, though we would expect forward
buying to prevent a break below this level for the time being," Barclays said
in a market report.
Zinc continued its slump, falling to a seven-and-a-half-year low, mainly on
technicals.
Technicals also hurt nickel, which rose slightly after breaking $5,900/ton
support but still closed at its lowest level since April.
Nickel's fall was "just on some speculative liquidation and short selling,
mostly chart-based," Bhar said.
-By Mark Long, Dow Jones Newswires; +44-20-7842-9356; mark.long@dowjones.com

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

UK: Telecoms, drugs drive FTSE 100 rally, Vodafone leads.
By Camila Reed

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - Britain's largest companies raced higher at the
close on Friday fired by telecoms and drug stocks as they bounced back from
Wednesday's 16-week low.
Index heavyweights Vodafone and GlaxoSmithKline provided 27 of the day's
55-point gain, while technology firms wobbled. However, the telecoms giant
surged 4.1 percent to 157-1/4p.
The FTSE 100 finished 55.4 points or one percent firmer at 5,537.0, having
jumped 1.66 percent on Thursday after seven consecutive losing sessions, with
gainers outnumbering losers by three to one.
Stocks steamed higher and refused to be derailed by sluggish U.S. retail
sales figures for June, which showed only a meagre rise, and a weaker Wall
Street, but volumes were thin at 1.4 billion shares.
By London's 1530 GMT finish the blue chip Dow Jones industrial average was
down five points, while the tech-laden Nasdaq Composite Index was flat,
having streaked up in the previous session.
Mike Lenhoff and Simon Rubinsohn at money managers Gerrard said that the UK
equity market was deeply oversold and long-term this presented a buying
opportunity for UK equities.
DRUGS SEE-SAW
Drugs reversed an earlier decline with Nycomed Amersham among the day's top
performers, up nearly four percent at 536-1/2p and AstraZeneca rising over
one percent.
Mining giant Anglo American moved into the FTSE 100 top ten gainers with a
three percent rise, as investors sought refuge in mining stocks as a cyclical
play.
Another major gainer was British business services firm Hays Plc up 3.4
percent. The shares leapt on market talk that Germany's Deutsche Post was
looking to make a bid for it, dealers said.
Both Deutsche Post and Hays declined to comment.
Firmer crude prices gave support to the oil sector. BP rose 0.6 percent to
572 pence and Shell also added 0.6 percent to 581-1/2p lifting the index by
four points.
FTSE MIXED PICTURE
But dealers and analysts said it would be a mixed picture going forward with
the market scrutinising data for signs of a sustained economic recovery or a
lapse in consumer confidence.
"This week we had a really bloody day on Wednesday and then the opposite on
Thursday, so we're going to be on a rollercoaster still. It's very fragile
but it does show the potential of the market," said Foreign & Colonial
director of UK equities David Manning.
"It's not only the holiday period, it's also that the market can make you
look an idiot one day to the next. In that sort of circumstance the
temptation is to do very little," he said.
ABN Amro strategist Gareth Williams said the market would make modest
progress over the next month or so, with moves downward quite likely although
the trend would be upwards over the course of the year.
TECHS DIP
Thursday's 5.3-percent rally in the Nasdaq failed to bring any cheer to UK
technology shares. Logica and Colt Telecom slid four percent, while microchip
designer ARM fell 3.9 percent to 223 pence trimming Thursday's 13 percent
jump.
The techMARK index of technology shares rose 0.98 percent to 1,602.87.
Elsewhere on the downside, UK holiday operator Airtours lost nearly 10
percent of its value after Swiss peer Kuoni issued a profit warning.
Among second liners, Baltimore Technologies closed up 3.3 percent. It
initially rallied 22 percent after the Irish Internet security firm said it
received an approach from an unlisted British-based company for an all-paper
deal to combine the companies.
The FTSE 250 Mid-cap index finished 5.1 points stronger at 6,163.8.
Among small-caps, Paladin Resources' shares jumped 10 percent after the UK
oil explorer said that major shareholder U.S. oil giant Enron had sold the
whole of its 40-million-share stake via HSBC bank for 44 pence a share.
Britain's Litho Supplies Plc slumped 42.5 percent after the company, which
supplies printing and graphic arts products, said that sales in the first six
months of 2001 were on target, but profits would likely be below expectations
due to tough market conditions and pressure on margins.

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

Futures Contract Covering Coal Debuts in New York (Correct)
2001-07-13 08:48 (New York)

Futures Contract Covering Coal Debuts in New York (Correct)

     (Corrects location of FirstEnergy Corp. in 10th paragraph of
story that moved yesterday.)

     New York, July 12 (Bloomberg) -- The New York Mercantile
Exchange today began trading a futures contract for low-sulfur
coal, a fuel that President George W. Bush said will play a major
role in meeting electricity demand over the next two decades.
     The contract's debut came after prices for coal, considered
the dirtiest of power-plant fuels, doubled in the past year, as
demand from power plants outstripped mine production. Coal for
September delivery opened at $42 a ton and settled at $40.75, as
98 contracts were traded, exchange officials said.
     ``We had a big run-up in coal prices this past winter,'' said
Andy Ozley, who buys coal for Atlanta-based Mirant Corp.'s six
coal plants in New York, Illinois, Maryland and Virginia. ``This
contract affords us a way to mitigate our exposure'' to large
price swings.
     The Bush administration said in an energy policy report this
spring that coal would be the dominant fuel for electricity
generation through 2020. Bush gave an added boost to the fuel when
he retreated from a campaign pledge to restrict carbon dioxide
emissions, implicated in global warming.
     Coal plants are responsible for a third of the nation's
carbon dioxide emissions. They also produce sulfur dioxide, which
causes acid rain, and nitrogen oxides, which cause smog.
     The Nymex started the futures contract to give mining
companies and utilities a way to hedge their risks in the $33
billion coal market. Producers such as Peabody Energy Corp. and
Arch Coal Inc., whose shares have soared in the past year, have
said they would trade the futures.

                            New Plants

     Last year's quadrupling of prices for natural gas -- a
cleaner-burning power-plant fuel -- prompted many generators to
ramp up output from their coal plants. Utility coal stockpiles
dwindled, and prices have risen to their highest levels since at
least 1989.
     So far this year, more than a dozen companies have announced
plans to build coal-fired plants, including Kansas City, Missouri-
based Kansas City Power & Light Co. and Portland, Oregon-based
PacifiCorp.
     Although coal is used to produce 52 percent of the nation's
electricity, few plants were built during the 1990s because of the
high costs of building them and the difficulty of complying with
federal and local environmental regulations.
     Demand for coal has eased in recent weeks as below-normal
temperatures in the U.S. Midwest and Northeast reduced demand for
air conditioning, said Jim Parks, who buys coal for six power
plants in Ohio and Pennsylvania as director of fuels at Akron,
Ohio-based FirstEnergy Corp.
     ``The summer's been pretty mild so far -- you haven't seen
any big heat waves'' in regions with the most coal generation, he
said.

                           Big Sandy

     The Nymex futures contract calls for the delivery of 1,550
tons of low-sulfur coal to the mouth of the Big Sandy River near
Huntington, West Virginia. From there, the fuel would be loaded
onto Ohio River barges and shipped to power plants in the U.S. and
possibly Europe.
     The new contract is tailored to producers in Appalachian
states that account for about 40 percent of U.S. production,
including West Virginia, Kentucky and Pennsylvania, the No. 2, 3
and 4 coal producers.
     The industry lacks a futures contract for coal from Western
states that account for 47 percent of the nation's production,
including the No. 1 producer, Wyoming.

                         Avoiding the Past

     The exchange, which earns commissions on trades, hopes coal
futures will avoid the fate of other contracts it has started over
the past few years. Its six electricity futures contracts have
fizzled, as has its Middle East sour crude oil contract, which
debuted in May 2000.
     ``I said yesterday, if you traded 100 to 200 contracts, that
would be a really a good day,'' said Chris Casale, vice president
of energy trading at Dynegy Inc. in Houston, which trades coal and
buys the fuel for its six power plants in New York and Illinois.
``It came out sort of on target.''
     Most of today's trading was originated by large energy
marketing companies, he said, although he declined to say whether
Dynegy traded any contracts. Enron Corp., the largest energy
trader, and Duke Energy Corp., the largest U.S.-based utility
holding company, have said they would trade coal futures.
     Exchange officials have said the coal market has the
potential to reach 5,000 trades a day after a year of trading.
     The Nymex's 17-year-old crude oil futures contract averages
about 66,700 trades a day, and its 11-year-old natural gas
contract averages about 33,500.

                           Wary of Coal

     ``The coal market is still lacking liquidity,'' said Anthony
McAuley, a floor broker at ABN Amro Inc., who said he bought five
coal contracts for a client at $42 a ton -- the market's first
transaction. ``You probably need to see a little more
participation'' from industry coal buyers and sellers for the
market to take off.
     Independent floor traders, known as locals, are wary of
trading coal futures without assurances that the industry will be
active as well.
     ``Floor traders lost millions'' in electricity futures when
some were caught with high-priced contracts and nobody in the
industry to sell them to, he said.
     ``Because of that, people are a little bit tentative about
coal,'' said Tom Schiff, an independent crude oil trader. ``We're
here to help make liquidity but we can't tackle all the risk.''

		Modern Metals, July 2001

		Giant energy concern now turns its attention to steel. The company's
aggressive posture has begged controversy. Industry reactions vary from
hand-wringing to open arms. Still others characterize Enron as a "non-event."
		By Michelle
Martinez Arjona,
Editor-in-Chief,
and Paul Hohl,
Contributing Editor

		These days, saying the word "Enron" in a room full of metals executives is
like screaming "fire" in a crowded theater. For most in the steel industry,
the idea of a futures market is enough to raise a few eyebrows. But when a
major market maker with annual revenues of 10 times the market cap of the
U.S. steelmaking industry stakes a claim (for 2000 alone, Enron logged
revenues of $101 billion--that's with a "b"), a lot more than eyebrows are
likely to be raised. After a bold presentation from Jeff McMahon, president
and CEO of Enron Industrial Markets, at the SSCI annual convention in May (in
which he accused steel mills of treating their service center customers as
"annoyances"), industry leaders rushed to understand this latest market
contender.
		Friend or foe? Competitor or partner? These are just a couple of the
questions surrounding Enron's aggressive push into the metals industry.
Judging from the service center and mill executives Modern Metals queried,
there are as many answers as there are opinions in the industry. Reactions
ranged from fear to acceptance to downright resentment. At least one mill was
reticent to discuss Enron at all--still others seemed to meet the issue with
unaffected shrugs. If the saying is true that all publicity is good
publicity, the buzz that Enron has generated would make even a Hollywood spin
doctor envious.
		What's the hubbub?
Although products such as natural gas and energy--Enron's major business
platform--have been traded as commodities for years, until Enron's appearance
a formal forward market for steel has never existed. According to McMahon,
the absence of a liquid and transparent market has resulted in "uninformed
investment decisions" that have exacerbated the current oversupply situation,
and left companies exposed to the hazards of price volatility.
		Enron's answer is to offer a variety of financial hedging products along with
forward contracts in hot-rolled, cold-rolled and galvanized (plate and long
products are soon to follow), locking in prices for as many as five years
out. Enron contends that it can act as a "risk intermediary" in steel
transactions, ensuring healthier profit margins and lowering the cost of
capital. Certain grades of steel are commodities, McMahon insists, and as
such should be bought and sold on a commodity market basis, instead of the
strategic relationships that now exist between the mills and consumers. Enron
has been offering steel online, and via phone and fax, since November of last
year.
		"Before you add capacity, before you make an investment decision, you'll be
able to see a three, five, maybe even a 10-year forward price of steel,"
McMahon stated, "and if you want to hedge that investment you can do that."
		The company plans to buy steel at a floating price and then sell it to steel
consumers at a fixed rate, making money on the spread. In February, Greg
Hermans, VP of steel trading at Enron, reported to AMM that it was offering
U.S.-made 10-gauge, 48-in. wide hot-rolled for April delivery in Chicago for
$225 a ton. Hermans said Enron was buying the same product for April delivery
at $215 a ton.
		Eventually, Enron sees the development of four different marketplaces: the
Northeast, the Midwest (or Chicago area), the Gulf Coast (or Houston area),
and the West Coast. Enron will hedge against spot price spikes through equity
and physical holdings in domestic mills. The company closed on Huntco's
Arkansas-based cold-rolling mill in June.
		"It's a big portfolio," McMahon said. "We wanted to put together a portfolio
of supply and demand. In some cases, we'll own assets--hopefully we'll own
some term contracts with domestic mills. To the extent that imports are a
part of the equation, we'll be a part of that market. We may purchase
capacity from somebody, not necessarily the assets, but toll slab through a
hot strip mill. All of those combined is how we do our business."
		Steel mills can benefit, McMahon said, by entering into a multi-year
"physical off take" with Enron, thus giving steel mills a degree of certain
volume and on product specification. Enron would guarantee purchase of a
specified amount of tonnage, and use a floating price or a floor price to
guard against market shocks. Whether mills would be willing to divert
capacity to the commodity grades being bought and sold by Enron remains
uncertain. At least one mill executive privately said no . . . at least for
now.
		Nucor president, CEO and vice chairman, Dan DiMicco also sees little value in
Enron's proposal. "What we need to have is stable pricing at levels where the
most efficient mills can make a good return on their capital and further
invest in new technologies and equipment," he stated. "I define true value as
helping the industry to become stronger. It doesn't do any good to maintain a
lack of price volatility at $200 a ton."
		Keith Busse, CEO at Steel Dynamics, echoed that sentiment in a recent New
Steel article. "If you're trying to get volatility out at $320 [per ton],
great," he said. "But at $230, you want to stick your fingers down your
throat."
		For the service centers
Service centers, McMahon suggested, could benefit immediately. "The only way
[distributors] are able to hedge themselves is to go out and buy inventory,"
he explained. "That takes capital, and cash, and space. We can offer a
financial product that gives the exact same protection, but doesn't require
any of the above.
		"We can hold those inventories and price the steel at the time of delivery to
the service centers," he continued, "so their 4- or 5- percent net margins
are somewhat certain."
		"I do think that Enron is providing a service for the industry . . . "
commented Dave Lerman, CEO of Steel Warehouse, South Bend, Indiana. But he
pointed out that "how [it] moves forward will be interesting. If they just
move forward with hedge instruments . . . that's independent of whether you
run your business well by having a good supplier that matches up with the
demands of your customers. I think [Enron] will be a good thing for some
people and a non-event for others."
		Beyond hedging, McMahon pointed out, firm and enforceable contracts could
become a key benefit to service centers. As one Midwestern distributor source
commented, "One of the terrible things that happens in our business is that
end users demand long-term pricing, beyond what anybody can foresee. When
they anticipate the market is going up, or that it has hit a low point, they
push harder for it--as any one would. But historically, they don't honor the
deals."
		In a down market, he explained, customers demand lower prices. Noncompliance
can result in orders, but no releases, and a "don't call us, we'll call you"
attitude from customers. The consequence for service centers, he said, are
price reductions on the way down and on the way up. "If Enron brings
integrity to both sides of this market," he concluded, "that would be a very
big plus for the steel industry."
		But integrity, another Midwest service center exec countered, has got nothing
to do with it. In his estimation, Enron is like a profiteering carpetbagger,
"trying to make a buck in between the producer and the user. That's all we
need right now," he declared, "somebody trying to squeeze out a few more
dollars." But, he recognized, "we're all going to have to deal with it."
		Don McNeeley, president and CEO of Chicago Tube & Iron, indicated that some
good could come of a heavy-hitter like Enron introducing new ideas into the
industry, but acknowledged that people might be offended by somebody picking
the so-called "low-hanging fruit" of the steel market in the current economy.
"What do you think the mills are going to do when you come to them for just
the peripheral items?" he queried. "My concern would be that the price would
go up on [those items]."
		McNeeley also questioned the wisdom of distributors relinquishing control of
their inventories. "In distribution, 60 percent of our net worth is
inventory, 30 percent is accounts receivable, and 10 percent is plant
property and equipment," he related. "Our single largest asset is our
inventory. If a distribution company surrenders control of its inventory to a
third party, does not that distributor, in effect, surrender its own
sovereignty?"
		Only just begun
Questions abound regarding Enron's role as a physical supplier of steel as
well. As one Minnesota-based service center exec put it, "are they ready to
deal with problems?"
		Although Enron has expressed interest in being a physical supplier, Dave
Lerman explained, "I think that's going to be a lot more difficult to
implement." Enron would have to consider specific qualities, coil sizes,
nuances of chemistry, surface quality, and formability. "Most customers
require better than standard tolerances," he pointed out. "These are all
issues that might complicate commodity sales."
		Delivery is another issue. As a physical supplier, Enron has virtually
guaranteed just-in-time delivery, but as one service center source said, "the
guarantee is good when the material shows up at my door. What happens if it
doesn't show up? I disappoint a customer. What good does it do to sue [Enron]
if I've lost a customer?"
		Mill executives have questioned whether Enron is a potential competitor.
"They see Enron as someone likely to buy foreign steel in order to deliver it
to a U.S. customer," said Chuck Bradford, principal of Bradford Research and
a long-time industry observer. He cautioned against seeing Enron as too much
of a physical supplier, speculating that the future of Enron, similar to the
LME, will be in hedging. "You may see some [physical transactions] to start
with," Bradford predicted, "just to get the ball rolling. But I don't see
that as the way the market will develop."
		McMahon has been consistent in saying that Enron has little interest in
becoming a steel manufacturer. The real value, he said, is in a transparent,
liquid market. "We know the products work, we know the market wants them. Can
any one particular mill or mills prevent that? We don't think so," he said.
"It's not an 'if', it's a 'when'."
		The jury is still out on just how soon that "when" will come, and what those
effects will be for the steel industry. And for all of the debate surrounding
the issue, it seems a bit soon to be hitting the panic button. As Don
McNeeley recounted, "I can recall similar controversy over a speech a guy
gave about 15-17 years ago. That guy's name was Ken Iverson, and he had this
concept called a mini-mill. Look at it now."


Please go to clickathome.enron.com, sign in, then go to internet options.
When you get to the internet options page then you can check qualification.
The following page is what you will see.  Click on qualify me ofr MSN. Let us
know if you need further assistance.

	From:  Sally Beck @ ECT                           02/20/2001 06:13 PM

To: clickathome@enron.com
cc:

Subject:

E:mail messages says to check website to determine whether or not DSL is
available at my home.  However, I don't see a spot on the website to check
that information.  Can you provide more details?


I added the pipelines and zone/point combonations that I feel we will be
using most on EOL.

Let me know if you have any questions.


Did he ever have any taste?

-----Original Message-----
From: Murphy, Tim [mailto:Tim.Murphy@ElPaso.com]
Sent: Tuesday, December 04, 2001 8:38 AM
To: 'Bump, Dan'; 'Whitt, Mark'
Subject: FW: Three Choices

It seems Mr. Lattin has little taste.

-----Original Message-----
From: Lattin, John
Sent: Monday, December 03, 2001 4:02 PM
To: Murphy, Tim
Subject: FW: Three Choices

>
> Three Choices
>
> A guy tells his wife that she has three choices.  She can either go
hunting
> with him, give him a blowjob, or he can butt fuck her.
>
> The wife says, "I don't want to go hunting because its too cold out, and
I've
> never been butt fucked before, so I think I'll go with the blowjob."
>
> So she's down there doing her thing and suddenly she says, "Your dick
tastes
> like shit!"
>
> The guy says, "Yeah, the dog didn't want to go hunting either."

******************************************************************
This email and any files transmitted with it from the ElPaso
Corporation are confidential and intended solely for the
use of the individual or entity to whom they are addressed.
If you have received this email in error please notify the
sender.
******************************************************************


I just wrote on our confirm that we are in agreement to trade date 12/4/00
per Matt Motley and faxed it back to Powerex for the records and kept fax
transmittal, and sent it off for filing.  Just letting you know.  Thanks

   Kate Symes                12/19/2000 11:26 AM

To: Stephanie Piwetz/HOU/ECT@ECT
cc:
Subject: Re: 12/4 term

I've changed the term to 12/4, and I'm going to make a note in our daily deal
correction report that this was due to a late report from EES. Thanks for
catching this.

Kate

Stephanie Piwetz   12/19/2000 09:02 AM

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

Subject: 12/4 term

Kate, below is the EES spreadsheet that has the shows the powerex trade shown
on 12/4/00.  Please verify and we can backdate the trade and reconfirm the
document, or we can initial Powerex change and send back to them to show that
we are in agreement.  Thanks Stephanie

---------------------- Forwarded by Stephanie Piwetz/HOU/ECT on 12/19/2000
10:54 AM ---------------------------

Jubran Whalan@EES
12/04/2000 04:42 PM
To: Daily Term Hedges for EES Portfolio
cc:
Subject: 12/4 term

CHECK CAREFULLY ONE COB TRANSACTION IS NORTH TO SOUTH AND ONE IS SOUTH TO
NORTH.


How real is this and how much support is there behind this. Will it be
introduced today? When might it be voted on?

Thanks,
michelle


World Watch
The Wall Street Journal, 10/01/01
INDIA: Panel suggests Indian govt pay in Enron row-paper.
Reuters English News Service, 10/01/01
INDIA: Tata Power said in talks to buy India Enron stake.
Reuters English News Service, 10/01/01
Greece Awards 4 Electricity Production, 8 Supply Permits
Dow Jones International News, 10/01/01
Cong, NCP differ over Enron probe panel issue
The Times of India, 10/01/01
Calif. utility closer to bankruptcy
The Star-Ledger Newark, NJ, 09/30/01
RULING SLOWS EFFORTS TO AID THOSE BESET WITH HIGH ELECTRIC BILLS
Portland Oregonian, 09/30/01
Calif Pwr Generators Demand Repayment, Threaten Lawsuit
Dow Jones Energy Service, 09/29/01
REGULATORS WILL NOT DELAY PGE INCREASE
Portland Oregonian, 09/29/01
Firms Push Edison Near Bankruptcy Energy: Power generators ask firm to spell out how they will be repaid hundreds of millions of dollars for purchases under deregulation plan.
Los Angeles Times, 09/29/01

International
World Watch
Compiled by Lily H. Li

10/01/2001
The Wall Street Journal
A12
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Azurix Abandons Argentine Concession
Azurix, a unit of Houston-based Enron, has decided to abandon its $440 million, 30-year concession to operate drinking- and waste-water services in Buenos Aires province and is trying to recover all investments made there in the past 26 months, a company spokesman said. In addition, Enron and Azurix will seek "some level of damages in addition to the money we've spent," said John Ambler, Enron's spokesman for its Latin American operations. On Sept. 19, the company filed a claim with the International Centre for the Settlement of Investment Disputes in Switzerland against the Republic of Argentina to make sure "that all of our rights are protected," he said.

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

INDIA: Panel suggests Indian govt pay in Enron row-paper.

10/01/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, Oct 1 (Reuters) - An Indian panel has suggested the federal government be willing to spend almost 57 billion rupees ($1.19 billion) to help resurrect the Enron Corp Dabhol power project, which stopped producing electricity more than three months ago, a business daily said on Monday.
The panel was constituted in early 2001 to review all aspects of the controversial power project, set up at a cost of $2.9 billion on the west coast of India.
The Business Standard daily said the panel's report had suggested Dabhol's various stakeholders all be willing to absorb the costs that would have to be incurred to revive the 2,184 MW gas-based project.
Dabhol Power Company is 65 percent owned by Enron Corp . GE and Bechtel own 10 percent each, while the Maharashtra State Electricity Board, a local state-owned power utility, owns the remaining 15 percent.
The western state of Maharashtra is a guarantor to the Dabhol project and the federal government is its counter-guarantor.
U.S.-based Enron has said it wants to exit the project after a bitter dispute with the local utility, which had initially contracted to purchase all the power from Dabhol Power Company's plant.
It subsequently defaulted on payments, saying it didn't need that much power, which it claimed was too expensive in any case. Enron claimed the utility was reneging on its contractual obligations.
Dabhol finally took the utility to the International Court of Arbitration in London, warning India faces liabilities worth $5 billion.
But Enron has simultaneously said it is willing to settle out of court if it can recover its costs.
While there have been many suggestions, the panel's report is among the few to provide a detailed solution, including the liability each party would have to shoulder.
A SOLUTION
The panel was set up by the Maharashtra government. Its main brief was to suggest ways of reworking the power purchase agreement so as to reduce Dabhol's tariff. After the dispute worsened, the panel was also asked to suggest revival measures.
The panel proposed that if all the stakeholders were willing to absorb the specified losses, the tariff on Dabhol's power could be reduced to between 2.25 and 2.4 rupees per kilowatt-hour from 3.65 to 3.91 rupees at 90 percent capacity utilisation, the newspaper reported.
According to the panel's report, the federal government's liability of 56.63 billion rupees included an infusion of 25 billion in cash, waiving customs duties on the import of liquefied natural gas (LNG) and cutting import duties on capital goods, the report said.
It said the panel has also suggested Enron, GE and Bechtel together absorb a loss of 28.35 billion rupees on their investment in the project. ($1=47.93 rupees).

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

INDIA: Tata Power said in talks to buy India Enron stake.

10/01/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, Oct 1 (Reuters) - India's largest private utility, Tata Power Company, is in preliminary talks with Enron Corp to buy the U.S. giant's stake in the troubled $2.9 billion Dabhol Power unit, Indian media reported.
The Economic Times said in a weekend report that Tata Power , a unit of India's second-largest conglomerate, would start final negotiations with Enron after the consultants it had appointed to value the project submitted a report.
It said JM Financial and Ernst & Young had been appointed to carry out a due diligence exercise.
The paper quoted Tata Power Managing Director Adi Engineer as saying his company would "demand Enron scale down the (selling) price" to make it viable to buy the stake.
Engineer was not immediately available for comment.
The Financial Express said in an unsourced report on Saturday that Tata Power and Enron were close to an agreement on the stake deal.
Indian financial institutions and banks, which have lent around $1.4 billion to the project, are coordinating efforts to find a buyer for Enron's stake.
"Our search for a viable partner is on," a source from a domestic lender told Reuters.
He said Tata Power officials met P.P.Vora, chairman of state-run Industrial Development Bank of India - the biggest lender to the project - and Enron officials last Thursday to start negotiations.
Enron has a 65 percent stake in the embattled project, Indian state utility Maharashtra State Electricity Board owns 15 percent and General Electric Co and Bechtel Corp. each own 10 percent.
Dabhol has faced problems ever since it was forced to shut its 740 MW plant on the west coast of India in June after its sole customer, a local state utility, stopped buying power.
It had also defaulted on earlier payments.
The shutdown has stalled an expansion programme, which was almost complete, that would have raised the capacity to 2,184 MW.
Tata Power shares were down 1.5 percent at 98.80 rupees while the Bombay benchmark index was down 0.65 percent in morning trade.

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

Greece Awards 4 Electricity Production, 8 Supply Permits

10/01/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

ATHENS -(Dow Jones)- Greece has awarded four electricity transmission unit licenses totaling 1,100 megawatts and eight electricity production permits totaling 954 MW, the country's development ministry said late Friday.
The four groups to operate electricity transmission units are U.S. Enron Corp. (ENE) for capacity of 350 MW, Italy's Enel SpA (EN) for 250 MW, Switzerland's Atel for 300 MW and U.S. Cinergy Corp. (CIN) for 200 MW.
The companies awarded electricity production permits were both local consortia and foreign companies.
Greece's Michaniki (I.MCH) and Aegek each received permits for 93 MW production capacity.
Kavala CCGT, a consortium made up of France's Electricite de France (F.EDF) and Hellenic Energy and Development, was awarded a 440 MW production capacity permit.
Cinergy Global Trading Ltd. received a 80 MW permit and a 50 MW permit while Aluminium of Greece (I.ALG), the Greek subsidiary of France's Pechiney SA (PY), received three permits, each for a capacity of 66 MW.
-By Paul Tugwell, Dow Jones Newswires; 301 3312 881; paul.tugwell@dowjones.com

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

Cong, NCP differ over Enron probe panel issue
Prakash Joshi

10/01/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: The delicate relationship between the Congress and the Nationalist Congress Party has been stretched to a breaking point following differences over the appointment of a retired Supreme Court judge to head the panel to probe into the Enron issue.
According to sources, the state government has completed necessary paper work after the state cabinet decided in principle to go for a judicial commission.
The NCP leadership is upset about the speed with which the commission is being constituted by the state administration. The NCP wanted to go slow with the idea.
On Friday, chief minister Deshmukh held a closed door meeting to decide on two issues whether to defer the constitution of the judicial panel and the NCP criticism on the chana dal and other issues aired after the Baramati conclave was convened by the party last week.
Though Deshmukh was not available, Congress sources confirmed that the cabinet was unanimous over immediate constitution of the commission.
"If the government is seen as buckling under the NCP's pressure and delaying the judicial probe, then it will send a wrong signal to people, a senior Congress minister observed Saturday, adding, "We will not do anything to stop the process in midway".
The NCP leadership, too, is under pressures from other constituents of the Democratic Front ruling the state, especially the Peasants and Workers Party and the Janata Dal (Secular), on the issue.
At one stage, the senior PWP minister Ganpatrao Deshmukh had even threatened to resign from the cabinet if the probe was delayed, and Chhagan Bhujbal, deputy chief minister, had to agree with the cabinet committee on the proposal for the commission.
The hawks in the NCP wanted the party oppose the move, but the moderates noted that any opposition to the probe would give the impression to the masses that the NCP had something to hide.
The NCP has been arguing since the Prime Minister himself was trying to sort out the differences with Enron, the state cabinet should not hurry up with appointment of the judicial commission and, thereby, close doors for negotiations.

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

News
Calif. utility closer to bankruptcy
ASSOCIATED PRESS

09/30/2001
The Star-Ledger Newark, NJ
FINAL
034
(c) 2001. The Star-Ledger. All rights reserved.

Pushing Southern California Edison one step closer to bankruptcy, five power generators are demanding it repay hundreds of millions of dollars or face possible litigation.
Officials for the companies - Reliant, Mirant, Dynegy Corp., Enron Corp. and Puget Sound Energy, the biggest investor-owned utility in Washington state - have asked Edison to sign an agreement spelling out how each would be repaid and implied that they would drag the utility into Bankruptcy Court otherwise, the Los Angeles Times reported yesterday.
Under federal law, any three creditors can force a company to file for bankruptcy if they are owed a combined $10,775.
Gov. Gray Davis has called for a third session of the state Legislature to deal with the energy crisis and force lawmakers to come up with a plan to save Edison.
Edison has already agreed to repayment plans with a number of smaller producers who collectively are owed $1.2 billion. Earlier this week, Edison announced a $14 million repayment plan with the city of Long Beach.
Other companies have opted to wait for the special legislative session, set to convene Oct. 9.
Under a propsed rescue plan for Edison that the Legislature failed to pass earlier this month, the utility would have repaid its smaller creditors and left the bigger companies without the $1 billion they are owed.
Edison racked up the $3.9 billion debt over the past year under the state's deregulation plan, which included a rate freeze that kept Edison from passing the full cost of power onto its customers.

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

BUSINESS
RULING SLOWS EFFORTS TO AID THOSE BESET WITH HIGH ELECTRIC BILLS
TOM DETZEL - The Oregonian

09/30/2001
Portland Oregonian
SUNRISE
C01
(Copyright (c) The Oregonian 2001)

Summary: After a judge rejects the claims of several Northwest utilities, a commision will once again tackle the issue
An administrative judge's blunt rejection of claims by Northwest utilities for more than $500 million in wholesale electricity refunds tosses the issue back in the lap of the Federal Energy Regulatory Commission.
The sweeping decision by Judge Carmen A. Cintron, issued Monday, is likely to prolong the legal and political haggling over how -- if at all -- to steer relief to consumers who saw bills rise after power prices hit record levels.
"The ruling is a mixed bag," said Rep. Peter DeFazio, D-Ore., who advocates stronger action by the commission to protect ratepayers. "We've got winners and losers in the Northwest under what happened with the huge run-up in prices."
In part, it was this concern about the difficulty of ordering refunds so as not to unfairly punish or reward utilities that drove Cintron to recommend that the five-member commission drop the Northwest case, which opened in August.
Seven utilities -- Seattle City Light, Tacoma Power, the Port of Seattle, Eugene Water & Electric Board, Northern Wasco PUD, Clark Public Utilities of Vancouver and Sacramento Municipal Utility District -- sought $505 million in what they said were unjust overcharges for wholesale power they bought.
The claims were originally part of a larger case involving California's claim to $9 billion in refunds stemming from that state's power crisis, but the regulatory commission's split the Northwest case because of differences in the way the two markets work.
Under the law, the commission is charged with ensuring that electricity rates are "just and reasonable." The commission has already found that wholesale rates were unjust in California, and a proceeding to determine what refunds are justified there is expected to continue through March.
Similarly, the commission's charge to Cintron was to determine whether refunds were warranted in the Northwest and, if so, how much is owed to whom. But after two months of legal haggling involving 78 parties and thousands of pages of briefs, Cintron's conclusions were stunningly direct.
No refunds should be ordered, she said, because the wholesale power market in the Northwest functioned as a competitive market should have.
Moreover, Cintron said, ordering after-the-fact refunds would have a "chilling effect" on the region's energy markets.
In the short term, sellers might be reluctant to offer power when it is most needed -- and prices are high. Over the long term, it could hamper investment in new power plants to supplement the Northwest's hydropower base.
"Given the nearly universal agreement that the Western markets as a whole need substantial new capacity additions in the next several years, a loss of confidence and exit of investors is the very worst result that could be envisioned," Cintron wrote.
That argument mirrored the case made by a group of parties that included investor-owned utilities such as PacifiCorp and Portland General Electric, power marketing companies such as Enron and Duke Energy and big consumer-owned utilities such as the Grant and Chelan county public utility districts in Washington.
Among other things, the 42-member group argued that most market players in the Northwest opposed refunds, and that high prices alone were not an indication that sellers were exercising undue market power.
Cintron agreed, finding that prices during the Dec. 25, 2000, to June 20 refund period proposed by the regulatory commission reflected shortages in water supply from the region's drought, weather- influenced demands and high natural-gas prices.
As such, "The parties have failed to show that market-based prices charged in the Pacific Northwest during the potential refund period were unjust and unreasonable," Cintron said.
Some think price was unreasonable
The judge's finding left DeFazio and some participants in the case perplexed: What could be said in defense of a commission market design that allowed wholesale power prices to peak above $3,000 a megawatt-hour -- more than 100 times the historic price -- and prompt double-digit rate increases for consumers?
"It's not doing anybody much good to have a market that generates that kind of volatility and those kinds of brutal prices," said Simon ffitch, an assistant attorney general for Washington, which backed the utilities' seeking refunds.
Wayne Nelson, general manager of Clark Public Utilities, which sought $64 million in the case, said Cintron's reasoning came across as simplistic.
"She seems to be saying, 'If the market's charging these rates, and everyone's paying them, then they're fair and reasonable,' " Nelson said. "I think you have too look one layer below that to see if the market was reasonable.
"It seems to me that's where the analysis stopped," he said.
Resales are complicating factor
Clark's claim provides an example of the complexity of the case.
The $64 million is for power the utility purchased from Kaiser Aluminum, which shut Northwest operations because of high electricity costs. But Kaiser had contractual rights to remarket low-cost federal power from the Bonneville Power Administration.
On Feb. 2, Kaiser agreed to sell Clark 140 megawatts worth of power for delivery in August and September for $325 per megawatt- hour -- more than 14 times the price the BPA was charging Kaiser for the power under its contract.
Clark's claim prompted Kaiser to join the case and argue that it had no refund liability because Bonneville sold the electricity. Bonneville, in its filings, claimed it shouldn't be required to pay a refund on money it handed to Kaiser or other aluminum company customers who had similar remarketing sales.
Part of Seattle City Light's $278 million refund claim included electricity the city bought through the BPA from Columbia Falls Aluminum in Montana.
Bonneville, the region's dominant provider of wholesale electricity, submitted filings in the California refund case suggesting it could be owed refunds of $70 million or more for power purchases it made. But in the Northwest case, the BPA argued against refunds on a variety of grounds.
Doubts over jurisdiction
A key claim was that the commission, under the Federal Power Act, has no jurisdiction to order the BPA or consumer-owned utilities -- municipals, PUDs and cooperatives -- to pay refunds.
Because of this jurisdictional question, a number of parties in the case -- including the Oregon Office of Energy -- argued that there is no practical way to order refunds and be fair to all the market players involved.
Power marketing companies, investor-owned utilities and others within the commission's jurisdiction could be exposed to refund liability, while theBPA and others would be exempt -- even though all bought and sold electricity in the same market at prices that, while high, were freely agreed to.
"We do still find that prices are unjust and unreasonable," said Phil Carver of the Oregon energy office. "But how you remedy it in a bilateral market is a mystery to me."
Commission reaction unknown
The judge's recommendations now go to the regulatory commission, which next meets Oct. 11. Commission members are prohibited from publicly discussing pending cases, and neither Chairman Pat Wood III nor commissioner William Massey returned calls about Cintron's ruling.
In July, all five commissioners voted to open the Northwest case. At the time, Massey showed the most sympathy for potential refunds, declaring that ratepayers in the region "paid what I consider to be outrageous prices for power that caused a lot of economic dislocation plant-closings."
But no one seemed willing to guess how the commission might react to Cintron's findings.
Even if the commission were to follow Cintron's recommendation and dismiss the case, the decision would be subject to further appeals and rehearings.
"I don't think this is the last we've heard of it," said Peter Burger, the lawyer who represented Bonneville in the case. "This is just Chapter One."
You can reach Tom Detzel at 503-294-7604 or by e-mail at tom.detzel@newhouse.com.
WHAT'S NEXT
Judge Carmen A. Cintron's recommendations now go to the Federal Energy Regulatory Commission, which next meets Oct. 11. The five- member panel could accept them, modify or reject them in part, or order yet more fact-finding.

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

Calif Pwr Generators Demand Repayment, Threaten Lawsuit

09/29/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LOS ANGELES (AP)--Pushing Edison Internation's (EIX) Southern California Edison unit one step closer to bankruptcy, five power generators are demanding the company repay hundreds of millions of dollars or face possible litigation.
Officials for the companies have asked Edison to sign an agreement that would spell out exactly how each would be repaid and implied that they would drag the utility into Bankruptcy Court otherwise, the Los Angeles Times reported Saturday.
Under federal law, any three creditors can force a company to file for bankruptcy if they are owed a combined $10,775. The five generating companies collectively are owed hundreds of millions of dollars, although the exact total is not known.
Meanwhile, Gov. Gray Davis has called for a third, extraordinary session of the state Legislature to deal with the energy crisis, and specifically to force lawmakers to come up with a plan to save Edison.
The demand for repayment came in the form of a letter from William Bates III, an attorney representing the five power generators. In the letter, company officials expressed frustration that Edison has been unwilling to work out a repayment plan.
"We would be willing to discuss any ideas SCE has about an agreement to repay its debt, but we don't want to waste anybody's time," Bates wrote. "Thus, as a first step we want to know whether SCE is interested in negotiating. ... Please give us a simple 'yes' or 'no' answer to that question."
Edison officials refused comment.
The five companies are Reliant Energy Inc. (REI), Mirant Corp. (MIR), Dynegy Inc. (DYN), Enron Corp. (ENE) and Puget Sound Energy (PSD), which is the biggest investor-owned utility in Washington state.
Edison has already agreed to repayment plans with a number of smaller producers who collectively are owed $1.2 billion. Earlier this week, Edison announced a $14 million repayment plan with the city of Long Beach.
"Edison can take steps to assure that all creditor classes are treated equally," said Richard Wheatley, a spokesman for Reliant Energy in Houston, Texas, which is owed at least $100 million by Edison.
Other companies have opted to wait for the special legislative session, set to convene Oct. 9.
Under a proposed rescue plan for Edison that the Legislature failed to pass earlier this month, the utility would have repaid its smaller creditors and left the bigger companies without the $1 billion they are owed.
Edison racked up the $3.9 billion debt over the past year under the state's deregulation plan, which included a rate freeze that kept Edison from passing the full cost of power onto its customers.

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

BUSINESS
REGULATORS WILL NOT DELAY PGE INCREASE
GAIL KINSEY HILL - The Oregonian

09/29/2001
Portland Oregonian
SUNRISE
D01
(Copyright (c) The Oregonian 2001)

Summary: The Oregon Public Utility Commission declines a request to postpone an electricity rate increase
Rate increases for Portland General Electric customers will go into effect Monday as regulators initially had ordered, despite a last-minute effort by consumer and business groups to delay the start date.
Associated Oregon Industries, Industrial Customers of Northwest Utilities and the Citizens' Utility Board had asked regulators to postpone the increases, arguing "rate shock" and irreparable economic harm.
Monthly electricity bills will go up an average of 32 percent for residential customers. Rates will rise 37 percent to 53 percent for business customers.
Portland-based PGE serves 730,000 customers, primarily in the northern Willamette Valley.
A petition, filed Sept. 24, argued that "the combination of PGE's unprecedented rate increases and the resulting economic impacts for PGE's residential, commercial and industrial customers could deal the local economy a crushing blow."
In denying the request, the Oregon Public Utility Commission concluded that petitioners had failed to provide adequate evidence that utility customers would be irreparably injured by the increases.
PUC Chairman Roy Hemmingway said regulators must weigh the interests of utilities as well as customers.
"PGE had to buy power in a very high-cost power market, and these costs need to be passed on to customers," he said. "To ask PGE to eat these costs would harm PGE and probably be illegal."
PGE had said that any delay would have cut into finances and forced it to borrow large amounts of money to cover mounting costs.
"We appreciate the commission upholding its original decision," said Scott Simms, a PGE spokesman. The higher rates reflect "prudently incurred expenses," Simms said.
The utility commission has yet to rule on a second petition filed by the same three interest groups. This one asks that regulators review the rate increases in light of worsening economic conditions.
The groups have criticized some of the operating expenses that PGE claimed in seeking the new rates. In addition, they say that the rates could be phased in, thereby easing the impact.
The commission will decide by Oct. 31 whether they will reconsider the order that put the rates into effect.
"I think it's good news (the PUC) did not rule at this point on the motion" to reconsider the order, said Jason Eisdorfer, an attorney with the Citizens' Utility Board. "It sounds like they'll thoughtfully go through the arguments."

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

California; Metro Desk
Firms Push Edison Near Bankruptcy Energy: Power generators ask firm to spell out how they will be repaid hundreds of millions of dollars for purchases under deregulation plan.
NANCY VOGEL; JERRY HIRSCH
TIMES STAFF WRITERS

09/29/2001
Los Angeles Times
Home Edition
B-1
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- Five big energy companies owed hundreds of millions of dollars by Southern California Edison pushed the utility a step closer to bankruptcy Friday by asking Edison to sign an agreement spelling out how each will be repaid.
The companies demanded that Edison meet with them within two weeks to work out a repayment plan and implied that otherwise they would drag the Rosemead-based utility into Bankruptcy Court. Under federal law, any three creditors can force a company to file for bankruptcy if they are owed a combined $10,775. The five generating companies collectively are owed hundreds of millions of dollars, although the exact total is not known.
The letter was a significant step in maneuvering over Edison's fate--a dance that has gone on for months but now appears to be nearing its close.
Edison has been reaching deals with some of its creditors, but has kept others waiting. Some power generators, in turn, have been threatening to push Edison into bankruptcy, although so far only Mirant Corp. and Reliant Energy have publicly embraced that idea. And Gov. Gray Davis and legislative leaders have continued to debate a plan that the governor believes could avoid a bankruptcy.
The letter, sent by William Bates III, a Palo Alto attorney representing the five power generators, expressed frustration that Edison so far has been unwilling to work out a repayment plan with large power producers. Under the Edison rescue plan that the Legislature debated and ultimately adjourned without passing earlier this month, Edison would have settled with its smaller creditors but been left with $1 billion in debt to big power sellers.
"This group of creditors is significant in both number and amount and deserves and requires to be dealt with as such," says the letter to Edison's private attorney, Thomas B. Walper of Munger, Tolles & Olson in Los Angeles.
"We would be willing to discuss any ideas SCE has" about an agreement to repay its debt, the letter continues, "but we don't want to waste anybody's time. Thus, as a first step we want to know whether SCE is interested in negotiating. . . . Please give us a simple 'yes' or 'no' answer to that question.
"Of course, we reserve all our rights and remedies in the event that SCE does not want to meet on these terms or we cannot reach a mutually satisfactory agreement," Bates wrote.
The five companies are Reliant, Mirant, Dynegy Corp., Enron Corp. and Puget Sound Energy, which is the biggest investor-owned utility in Washington state.
Edison officials refused to comment.
The frustration on the part of the power generators appeared to mount Tuesday, when Edison announced that it had reached an agreement to pay off its $14-million debt to the city of Long Beach, which sold Edison electricity produced at a trash-fueled power plant on Terminal Island.
Edison has also reached repayment plans with many small and renewable power producers who collectively are owed $1.2 billion.
"Edison can take steps to assure that all creditor classes are treated equally," said Richard Wheatley, a spokesman for Reliant Energy in Houston, which is owed $100 million to $200 million by Edison.
A spokesman for Atlanta-based Mirant, which is also owed more than $100 million, sounded a similar note. "It is time SCE made clear when, how much and even if it is going to pay us," Patrick Dorinson said.
So far, other creditors have balked at the idea of pushing Edison into bankruptcy, believing that a judge would probably consider a bankruptcy petition premature until after the Legislature meets Oct. 9 in a special session to deal exclusively with Edison's plight.
Davis, who insists that Edison should not be allowed to file for bankruptcy, ordered the new session earlier this month after legislators adjourned without passing any legislation that would shrink Edison's debt.
Other Creditors Take Notice
Senate leader John Burton, (D-San Francisco), has said that any such bill would have to guarantee that the burden of paying off the utility's $3.9-billion debt does not fall on homeowners and small-business owners.
The letter from the five generators caught the attention of other creditors who have so far played along with SCE's strategy of winning a legislative rescue.
"From our perspective, the days of luxury for Edison are over," said John Moorlach, Orange County treasurer. The county holds $1 million of defaulted SCE bonds in its retirement plan.
Moorlach said he believes that if SCE does not quickly reach an agreement with the generators, they will push the utility into Bankruptcy Court.
"By doing this, the generators are trying to show that they are making a good-faith effort to reach a settlement first," Moorlach said.
But Jay Lawrence, spokesman for the Renewable Energy Creditors Committee, said his members believe the move by the generators shows they have backed off from an immediate involuntary bankruptcy petition filing, at least while they try to open negotiations with SCE.
"We still want to see a legislative solution, and we are against bankruptcy," Lawrence said.
Edison provides electricity to 11 million people. It racked up the $3.9-billion debt over the past year as it purchased high-priced electricity in the fledgling market California created under a 1996 deregulation plan. The state's deregulation plan included a rate freeze that barred Edison from passing the full cost of the power it bought on to customers.
By January, Edison's debt had grown so heavy that power sellers refused to deal with the utility. The state had to step in with taxpayer money to keep electricity flowing. So far, the state has spent $10.7 billion on power purchases.
Edison's counterpart in Northern California, Pacific Gas & Electric, suffered the same financial squeeze in the state's dysfunctional market. PG&E took itself into bankruptcy in April.
The generators' demand came on a day when Edison officials said they were close to winning an agreement from bankers to delay collecting on $200 million in loans until Oct. 19.
Shares of Edison International, the parent company of Southern California Edison, rose almost 5% Friday to close at $13.16 on the New York Stock Exchange.
*
Times staff writer Nancy Rivera Brooks contributed to this report.

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


where do yo get tickets for prague.  i need to get two.  i am gonna stay in
town.  we are heading to champs for the game if you want to go.


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

----- Forwarded by Debra Perlingiere/HOU/ECT on 05/30/2001 03:40 PM -----

	Judy Thorne/ENRON@enronXgate
	05/30/2001 08:32 AM

		 To: linda.mikulec@cinergy.com@SMTP@enronXgate
		 cc: Debra Perlingiere/HOU/ECT@ECT, Judy Thorne/ENRON@enronXgate
		 Subject: Cinergy GISB

Linda,

Per our conversation yesterday, I am forwarding for your review the attached
sample of Enron Upstream Company, LLC's GISB.   Please do not hesitate to
give me a call with any questions you may have regarding the enclosed.

Thanks,
Judy Thorne
ENA Upstream Company, LLC


Rob, what is your view?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 01/05/2001
09:33 PM ---------------------------

	From:  Chris H Foster                           01/05/2001 06:26 PM

To: David W Delainey/HOU/ECT@ECT
cc: Tim Belden/HOU/ECT@ECT, Paul Devries/TOR/ECT@ECT, Rob
Milnthorp/CAL/ECT@ECT
Subject: Toronto Opportunity

Dave:

Just prior to the Holidays, I wrote an e-mail to Paul Devries (I copied you)
that outlined how my experience could help the Toronto office expand
business. As I indicated in my e-mail, my career interest, and my view of the
needs of the Toronto office, is for a role that would look more like cash
trading/services transaction management rather than pure coverage.  Paul and
I agree that there is not enough happening in the cash trading/services area
right now to warrant my move to Toronto.  We are hopeful that at some point
within the next year, this will not be the case and Garrett Tripp will find
himself too busy to effectively manage what needs to be done.  This probably
will occur soon after market opening, rather than before.  At that time, I
could be ready to go quickly.  If market conditions change so that my skills
are not a real good fit, than we would not make the move.  I am confident I
can stay abreast of Ontario market issues from Portland to limit any learning
curve once a move happens.

I think Paul is comfortable with this plan.  He was going to run it by Rob.
Please let me know if you are OK with this plan as well.

Thanks again for the consideration.

Chris