---------------------- Forwarded by Massimo Marolo/HOU/EES on 11/14/2001 09:32 AM ---------------------------

Peggy Mahoney
11/14/2001 07:34 AM
To:	All EES
cc:
Subject:	Enron articles

In case you missed these, below is a sample of articles about the Dynegy/Enron merger
written in the last couple of days.

Dynegy-Enron Deal potentially "staggering"
Platts Oilgram News,  11/13/01

Dynegy Calls SEC's Probe of Enron `Financial Noise'
Bloomberg, 11/12/01

Dynegy sees no more nasty surprises from Enron.
Rueters,  11/12/01
Dynegy and Enron Shares Get a Boost As Acquisition Plan is Met With Optimism
The Wall Street Journal, 11/13/01
Gas Pipeline Is Prominent As Dynegy Seeks Enron
The New York Times, 11/13/01
Suitor for Enron Receives Approval From Wall St.
The New York Times, 11/13/01
Share boost for Dynegy good news
Houston Chronicle, 11/13/01
Dynegy Pres: Enron's Core Business Is Very, Very Strong
Dow Jones Newswires, 11/13/01
Dynegy Deal Sets Path Of Resolution For Enron - Analyst
Dow Jones Newswires, 11/12/01

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Dynegy-Enron deal potential 'staggering'
Energy Insight News for Tuesday, November 13, 2001

If the deal between Enron and Dynegy is successfully executed, it "should
yield the most widely recognized, respected and downright credible
wholesale/retail energy merchant in the world," said James Yannello and
Ronald Barone, analysts with UBS Warburg, in a research note Monday.

Troubled energy giant Enron Corp. agreed late Friday to be taken over by
smaller rival Dynegy Inc. in a $7.8 billion stock swap, with assumption of
at least $12 billion of Enron debt. The deal includes an immediate infusion
of $1.5 billion from Dynegy's 26.6% owner ChevronTexaco to shore up Enron's
cash-strained trading operations, with another $1 billion of new equity from
ChevronTexaco when the merger closes.

"We view both the near and long-term upside potential of this deal as
staggering," said the UBS Warburg analysts, citing the combination of
"Enron's unsurpassed global wholesale network franchise with that of
Dynegy's; fully leveraging the two's online capabilities; continuing the
aggressive growth of what will likely become Dynegy Energy Services;
disposing of all non-core assets; and managing this global powerhouse with
Dynegy's above-board culture based on teamwork, strict values and honesty."

Even though it remains positive about this merger, UBS Warburg hasn't
underestimated the "enormous challenge at hand. In the near-term, Enron must
remain highly liquid, investment grade and its employees must remain focused
on keeping its core wholesale/retail franchises up and running. ... Also,
early indications are that the ratings agencies have blessed the plan."

Dynegy will offer 0.2685 of its shares for each Enron share, giving Dynegy
holders 64% of the combined company. At Dynegy's closing price Friday of
$38.76/share, that equates to $10.41/share for Enron, which has seen its
stock plummet from more than $89 a year ago to a recent low of $7 before
rebounding on Dynegy bailout rumors. Enron closed at $8.63/share Nov. 9.

Dynegy Calls SEC's Probe of Enron `Financial Noise'
By Russell Hubbard

Houston, Nov. 12 (Bloomberg) -- Dynegy Inc. Chairman Chuck Watson said he's convinced Enron Corp.'s trading operations are sound and described disclosures about affiliated partnerships that helped drive Enron's stock down 67 percent in three weeks as ``financial noise.''

Dynegy agreed Friday to buy Enron for at least $23 billion, including at least $8 billion in stock and $15 billion in assumed debt. Dynegy shares rose as much as 16 percent today. Enron rose as much as 20 percent.

In an interview after the merger announcement, Watson and Enron Chairman Kenneth Lay discussed how the Houston-based companies reached agreement less than three weeks after Enron's shares began plunging.

``All the financial noise about the partnerships, maybe it has damaged the Enron brand a bit,'' Watson said. ``But I'll tell you what it hasn't impacted, and that's the high regard that the industry places on'' Enron's trading business, he said.

Enron last week restated earnings for four years to include losses from three affiliated partnerships, reducing earnings by $586 million.

Six employees, out of Enron's 20,000, may have improperly benefited from the partnerships, Lay said.

``I'm sorry those six people seem to have gone somewhat over the edge in their dealings or transactions, but you can't be absolutely protected from that in any business,'' he said.

Lost Effectiveness

Lay didn't specify which six people he was referring to. He removed Andrew Fastow, who helped set up and ran many of the affiliated partnerships, as chief financial officer on Oct. 24. An Enron securities filing says Fastow made more than $30 million off two of the partnerships.

Fastow ``had lost his effectiveness because of all the press coverage'' on the affiliates, Lay said.

Treasurer Ben Glisan and Kristina Mordaunt, a managing director and a corporate counsel for an Enron division, also were fired, Enron said in a corporate filing on Thursday. Former employees Michael Kopper, Kathy Lynn and Anne Yeager were in a position to profit from partnerships, the filing said.

``You trust people, you accept their representations and proposals,'' Lay said. ``Sometimes when you do that, you get surprised and disappointed.''

Both executives said they expect antitrust regulators to approve the merger because the two companies own different types of assets and won't dominate any market.

``There really isn't anything that lays on top of each other,'' Watson said Friday night. ``We're not in the pipeline business and they are. We're in the generation business, and they're really not.''

Dynegy shares rose 6.2 percent on Friday after terms of the Enron purchase leaked to the press. Watson expects the acquisition to add 90 cents to 95 cents a share, or 35 percent, to Dynegy's 2002 earnings. Enron is selling for $10.41 a share, one-fifth the average price over the past 12 months.

Enron stock climbed 97 cents, or 11 percent, to $9.60 in late morning trading. Earlier, they touched $10.38. Dynegy rose $4.54, or 12 percent, to $43.30 after touching $45.

Cash Crunch

The rapid decline of Enron threatened to bankrupt the company and disrupt energy markets. Enron handles an estimated one-quarter of U.S. electricity and natural-gas trades. A falling credit rating made it difficult for the company to raise capital needed to back trades.

As part of the purchase, ChevronTexaco Corp., which owns 26 percent of Dynegy, agreed to provide Enron with $2.5 billion.

``What we found when looked under the hood is that the core of Enron was still there and working as well as ever,'' Watson said. ``That business was pristine and had nothing to do with the partnerships.''

Dynegy began taking steps toward the acquisition in late October, when Watson called Lay to offer assistance with Enron's growing financial crisis, the two men said. That led to a Saturday morning meeting in Lay's kitchen.

``He even made me a breakfast roll,'' Watson said.

``He didn't eat it,'' Lay said.

Lay said he won't be an active manager in the new company. Watson said Friday that he and Lay hadn't discussed a severance package.

As head of Enron, Lay had refocused the Houston operator of U.S. natural-gas pipelines on trading and international expansion, boosting reported revenue 20-fold since 1995 to $100.8 billion last year. He said he doesn't regret the strategy.

``Clearly, Enron has gotten involved in business that hasn't turned out well,'' Lay said, pointing to money-losers Azurix Inc., created to supply water and build related projects around the world, and NewPower Holdings Inc., a seller of electricity to homes and small businesses. ``But you have to keep in mind, too, that 12 years ago we weren't in the wholesale merchant (trading) business. Today that's an incredibly valuable franchise.''

The trading business, which accounts for about 97 percent of Enron's revenue, buys electricity, gas and other commodities from producers and sells them to end users such as utilities and industrial customers. It also advises big business customers on energy use and sells them gas and electricity.

Reassessing Steel, Lumber

Watson said the new company will keep trading coal, gas, power and petroleum products, and plans to expand by buying assets and using them to develop trading. ``We'll just have to reassess over time whether we stay in'' trading of steel, lumber and other non-energy commodities, he said.

Enron wants to shed its 65 percent stake in Dabhol Power Co. in India, which is owed $64 million in overdue bills from a state government agency that has refused to pay the power prices Enron was promised in contracts.

``We have strong legal remedies and we're heading down the path toward arbitration, but we'd still very much like to work out a settlement with the government,'' Lay said. Potential buyers have balked at Enron's $1 billion asking price for Dabhol.

Neither man would comment on whether Dynegy plans to cut jobs after the merger, or what will happen to the naming rights to Enron Field. The Major League baseball stadium is home to the Houston Astros, and Enron paid $100 million to have its name on the ballpark.

``The name of the company is now Dynegy,'' Watson said.

Dynegy's acquisition requires approval from U.S. securities, antitrust and energy regulators. Watson expects soon to share details of the new Dynegy with regulators from the European Union and U.K., where Enron operates a trading desk and owns a water company and two power plants.

``I don't know if we are required to do so, but we will talk to them anyway,'' Watson said.

``We don't think there are going to be any problems,'' Lay said.

Dynegy sees no more nasty surprises from Enron.
By Andrew Kelly
11/12/2001
Reuters English News Service
HOUSTON, Nov 12 (Reuters) - Dynegy Inc. said on Monday does not foresee any damaging disclosures from Enron Corp., slammed by news of murky off-balance sheet transactions, that could derail its planned takeover of the beleaguered energy trading giant.
However, Dynegy said it can drop its $9 billion offer if more bad news emerges, or if pending lawsuits against Enron lead to more than $3.5 billion in costs.
Dynegy also expressed confidence the takeover announced on Friday, will win U.S. regulatory approval.
"I really have a good deal of confidence, but not an absolute guarantee, that we are going to be fine here," said Dynegy Chief Executive Officer Chuck Watson, when pressed about the possibility of further troubling disclosures by Enron.
Watson said Dynegy had run the deal through worst-case scenarios and concluded that it made good business sense.
Investors apparently agreed, bidding up Dynegy shares $5.55, or 14.3 percent, to close at $44.31 on the New York Stock Exchange. Enron shares gained 61 cents, to 7.1 percent, to $9.24. The deal valued Enron stock at $10.41.
Enron agreed to a Dynegy buyout after it was overwhelmed by a series of problems, including a U.S. regulatory probe into the off-balance sheet dealings, a $1.2 billion cut in shareholder equity and damaging credit rating downgrades.
Watson has cause for concern about new disclosures from Enron, which last Thursday said an internal probe showed its earnings had been overstated by some $600 million since 1997.
In a conference call with analysts on Monday, Dynegy executives emphasized their confidence in the future of the combined company, including annual projected earnings-per-share growth of 15 percent to 20 percent over the next three years.
But they also fielded a barrage of questions about how well Dynegy has insulated itself against further surprises of the kind that had slashed Enron's market value last week to barely one-tenth the almost $80 billion it was valued in August 2000.
DYNEGY DOUBTS HUGE LIABILITIES
To ensure against unpleasant disclosures, Dynegy wrote so-called material adverse change clauses into the deal, allowing it to walk away from Enron if there is serious deterioration of its businesses or assets.
In particular, Dynegy can turn its back on the deal if pending litigation against Enron - including a stack of lawsuits filed by angry investors who have lost a fortune - leads to costs of more than $3.5 billion.
Chief Financial Officer Rob Doty said it was highly unlikely that this threshold would be reached, even if a "very substantial" settlement was reached in the stockholder suits.
Commerzbank Securities analyst Andre Meade said he was not yet convinced that the stream of bad news from Enron was over.
"I think Dynegy is making a big bet that they can successfully clean up the problems that Enron has had," he said.
But UBS Warburg analyst Jay Yannello said after hearing management discuss the deal, he was reassured it could address tough questions - a breath of fresh air after Enron's tight-lipped response to investors.
Some analysts have said the deal could be thwarted by regulators because of concerns that Dynegy would be too powerful after merging with Enron, currently North America's biggest buyer and seller of both natural gas and electricity.
Watson said Dynegy would have to work hard to explain the deal to regulators, led by the Federal Energy Regulatory Commission, but does not doubt it will eventually pass muster.
"We really are confident that up and down the line we are going to be able to convince them that this is really in the best interest of the energy industry as well as these two respective companies," he said.
GAS PIPELINE OPTION, BREAK-UP FEES
Dynegy executives also said there would be no complicated financing arrangements of the kind that triggered Enron's downfall, and that the new Dynegy will be able to keep top Enron executives and traders from defecting to rival firms.
Enron officials declined to comment on reports that its banks J.P. Morgan and Citigroup were considering pumping an extra $500 million of capital in to Enron.
Oil company ChevronTexaco Inc., a major Dynegy stockholder, has already agreed to inject $1.5 billion into Enron immediately to keep it afloat while the merger is completed, which Dynegy expects to take six to nine months.
If Enron backs out of the deal to accept a higher offer, it would have to pay a $350 million breakup fee to Dyegy.
And if the deal breaks down for any reason, Dynegy would be allowed to exercise an option to acquire Enron's Northern Natural Gas pipeline subsidiary.
Dynegy and Enron Shares Get a Boost As Acquisition Plan is Met With Optimism
By John R. Emshwiller
11/13/2001
The Wall Street Journal
The shares of Enron Corp. and Dynegy Inc. both rose in heavy trading as investors began trying to digest the possible risks and rewards of Dynegy's plan to acquire Enron in a stock swap with a current value of $10.12 billion.
In calls and meetings with analysts yesterday, Dynegy Chairman Chuck Watson and Enron Chairman Kenneth Lay continued talking up the deal that was announced late Friday. "We are confident this is good strategically and financially for Dynegy and Enron," said Mr. Watson, who will serve as chairman and chief executive of the combined entity, to be called Dynegy Inc.
While the proposed combination faces months of review by government agencies and gives Dynegy possible opportunities to cancel the deal, investors' initial reaction to the merger announcement was positive. As of 4 p.m. in New York Stock Exchange composite trading, Dynegy shares were at $44.31, up $5.55, or 14%. Also on the Big Board, Enron was at $9.24, up 7.1%, or 61 cents. Both companies were among the most actively traded issues.
Under terms of the proposed acquisition, Dynegy would give 0.2685 of its shares for each Enron share. Based on Dynegy's stock price yesterday , this formula values Enron stock at $11.90 each. Enron has about 850 million shares outstanding.
Some people raised cautionary notes yesterday. Moody's Investors Service placed Dynegy on review for a possible credit-ratings downgrade. Standard & Poor's made a similar move on Friday. Moody's said that while it saw positive elements to the proposed combination, it also believed "the financial and business risks associated with the transaction could negatively impact Dynegy's credit fundamentals."
Prudential Securities analyst Carol Coale, who counts herself a fan of Dynegy, also worries that Enron's enormous problems could be a drag on the combined entity. "I don't want the Dynegy folks to get into something that's not good for the company," she said.
As reported, Enron in the past several weeks has seen its stock price and standing in the investment community plummet, largely as the result of large-scale transactions it did with partnerships headed by Enron officers. Those transactions have produced hundreds of millions of dollars of write-offs and restatements in the past month. They are being investigated by the Securities and Exchange Commission and have helped spawn more than a dozen shareholder lawsuits.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Gas Pipeline Is Prominent As Dynegy Seeks Enron
By FLOYD NORRIS
11/13/2001
The New York Times
Dynegy has negotiated a great takeover. And it may end up buying Enron, too.
As part of its planned acquisition of Enron, Dynegy will get the crown jewel even if the overall deal falls apart. In return for its $1.5 billion investment today, Dynegy has the right to acquire Northern Natural Gas, a pipeline system that is probably worth more.
As Dynegy stock soared 14 percent yesterday, Enron's lagged behind, rising just 7 percent. [Page C13.]
That widened the spread -- the profit a trader could lock in by buying Enron and selling Dynegy short, assuming the deal goes through -- to 28 percent.
The big premium probably reflects more than the fact that this deal will not close for many months. It is at least a possibility that Dynegy will renegotiate the price, or even walk away, as it learns more about Enron's business.
Not that Chuck Watson, chairman and chief executive of Dynegy, was threatening to do any such thing. In a talk to analysts yesterday, and in a later interview, he was extraordinarily upbeat about Enron's trading business even as he dismissed many of the company's diversifications as failures whose poor performance might have been obscured by fancy accounting.
Full details of the agreement between the companies will not be known until the merger agreement is filed with the Securities and Exchange Commission today or tomorrow. But it appears that if the agreement falls apart for any reason, Dynegy has the right to keep the pipeline without putting up any additional cash.
Speaking to analysts yesterday, Rob Doty, chief financial officer at Dynegy, said the company was paying about seven or eight times the cash flow of the pipeline business.
Walking away from the deal might cost Dynegy $350 million if it could not cite any material adverse change in Enron's business, as provided in the merger agreement. But one way to look at this deal is that Dynegy is spending $1.85 billion for the pipeline and a right to get the rest of Enron on the agreed terms.
Mr. Watson said he was confident that things would not go wrong.
''We have comfort there is not another shoe to drop,'' he said. ''If there is no shoe, this is a phenomenally good transaction.''
In presentations to analysts, Dynegy officials said they expected the company's earnings per share to grow by at least 90 cents a year even before considering cost reductions as the two businesses are merged. That arithmetic was based on assumptions that Enron could deliver at least 75 percent of the $2 a share in pro-forma earnings that Wall Street had been forecasting for next year. Those forecasts had stayed the same even as Enron's business collapsed.
The bullish case for the merger is that Enron's real profits were there and that the financial maneuvering did not cover up far deeper problems.
Mr. Watson promised that more details would be disclosed about the partnerships that were created by Enron and traded with it, providing a substantial part of the company's profits in 2000.
Enron's need to make a deal quickly -- almost any deal -- was emphasized by Standard & Poor's, the bond rating service. In a conference call yesterday, Ron Barone, an analyst with S.& P., said that without the takeover, Enron's rating would have been cut to low BB or high B. Those ratings are not even at the high end of junk, and a company like Enron, which depends on others being willing to treat it as a trusted trading partner, needs an investment grade rating. Its current S.& P. rating is BBB minus, the lowest investment grade rating.
That means Enron could not continue as an independent business. And it means that should Dynegy decide to renegotiate, Enron would be in a very poor bargaining position unless it had another bidder.
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Suitor for Enron Receives Approval From Wall St.
By ALEX BERENSON
11/13/2001
The New York Times
Wall Street found nothing but good news in Dynegy's $9 billion takeover of the Enron Corporation yesterday.
Three days after Dynegy, an energy marketing and trading company based in Houston, agreed to take over Enron, its giant crosstown rival, Dynegy executives came to New York to assure investors that the deal would sharply increase their company's profits. They met a receptive audience.
Dynegy stock closed yesterday at $44.31, up $5.55, or 14.3 percent. Since last Wednesday, when news of a possible takeover emerged, Dynegy's stock has risen more than one-third. Enron closed at $9.24, up 61 cents, or 7.1 percent.
After some initial uncertainty about the takeover, investors appear to have accepted Dynegy's view that the deal will give it a lucrative franchise in trading natural gas and electricity. Enron's stock fell almost 80 percent in the weeks leading up to the deal as Enron said it had overstated its earnings by almost $600 million since 1997 and forced out several top executives.
But Chuck Watson, Dynegy's chairman, told investors repeatedly yesterday that Enron's problems were mainly a result of failed expansion efforts. He largely dismissed the concerns of some short-sellers and analysts that Enron might be hiding losses at its core energy trading operations.
''There's nothing wrong with Enron's business,'' Mr. Watson said in an interview at the Waldorf-Astoria Hotel after making a lunchtime presentation to analysts and investors. ''The people in it ought to be really upset that for the last several years, they have produced earnings and cash that have been invested in other businesses that are not making money.''
Enron's immediate problem was a crisis of confidence, which could have caused other companies to stop trading with it, Mr. Watson said. A $1.5 billion cash infusion from Dynegy should restore the confidence of Enron's business partners and keep Enron stable until the takeover is complete, he said. To bolster Enron further, J. P. Morgan Chase and Citigroup may each invest an additional $250 million, executives close to the deal said. The potential investments by J. P. Morgan Chase and Citigroup were reported yesterday in The Wall Street Journal.
Mr. Watson said Dynegy would also move quickly to assuage Enron employees who are angry that Kenneth L. Lay, Enron's chairman, and other top executives sold hundreds of millions of dollars in stock in 2000 and this year as Enron's shares plunged. ''Right now, there's some animosity over there,'' he said.
Many employees at Enron will get new grants of stock options when the acquisition is completed, he said. The company said it expected the deal to close by the end of the third quarter of next year, after extensive reviews from federal and state energy regulators and the Department of Justice.
Mr. Watson predicted that the deal would lift Dynegy's earnings by 90 cents or more a share next year, to more than $3.45 a share.
Analysts backed that view yesterday. ''Investments in noncore business distracted the attention of management and also took up capital,'' said Thomas Hamlin, an analyst at Wachovia Securities. Mr. Hamlin said he believed that Dynegy had obtained Enron, which reported more than $100 billion in revenue last year, for a bargain price.
''It's not too often you get to take out the No. 7 Fortune 500 company and double your earnings in the meantime,'' he said. ''My guess is the stock is worth $70 per share.''
The deal could increase Dynegy's earnings by $1 to $2 a share next year, said Christopher Ellinghaus, an analyst at the Williams Capital Group.
''That's a whopper,'' he said. ''It's a very good deal financially, certainly should be a good deal strategically, and provides some immediate balance-sheet backstop for Enron.''
Mr. Lay said in an interview that Enron had been forced to sell itself because of ''the relentlessness of all the articles and the shorts.''
''We realized that we needed to do something to stabilize the ship,'' he said. ''A good company was being badly tarnished.''
Photo: In Houston, the headquarters building of Dynegy Inc., the energy and marketing trading company, which is in a $9 billion takeover of Enron. (Asociated Press)
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Share boost for Dynegy good news
Saving Enron trading called key handicap
By LAURA GOLDBERG and DAVID IVANOVICH
November 13, 2001
Houston Chronicle
Although investors Monday cheered Dynegy's planned acquisition of Enron Corp., Dynegy must still negotiate a series of potential roadblocks to pull off a successful merger.
Among them: ensuring that Enron's core energy-trading business, suffering before the merger announcement, stays healthy. Negative news on that front quickly surfaced Monday as at least two traders said they still plan extremely limited business with Enron.
Dynegy must also manage any unexpected disclosures about Enron's financial performance and investment partnerships, convince Enron's traders and other key employees to stick around, and mesh different corporate cultures.
Investors were optimistic in Dynegy's abilities as shares in the company traded up $5.55 to close at $44.31 Monday, while shares in Enron ended the day up 61 cents at $9.24.
Enron has been under siege since Oct. 16 when it reported a $35 million loss and $1.2 billion reduction in shareholder equity tied to business dealings with investment partnerships run by its then-chief financial officer.
Since then, the Securities and Exchange Commission started an investigation of Enron, a slew of shareholder lawsuits were filed and Enron's stock price plummeted.
A new shareholder suit filed Monday included Dynegy on its list of defendants.
Last week, Enron said it was restating its earnings back to 1997 to include losses related to a number of complex partnerships, including several being investigated by the SEC. It said it was correcting almost $600 million worth of mistakes.
Just how close Enron was to a collapse remains unclear. One industry source believes Enron had been pushed "to the brink" and would have been done for if it had been unable to reach agreement with Dynegy last week.
But Ron Barone, a credit analyst with Standard & Poor's, doesn't think Enron's condition was so desperate.
"We clearly didn't see this as an imminent bankruptcy or imminent default, but it is something that could have eroded over time ... in a fairly short time."
Friday, Enron's long-term debt rating was downgraded to one notch above investment-grade status by both Moody's Investors Service and S&P.
Enron is the largest natural gas and electricity trader in the nation, accounting for about 25 percent of all transactions. Its collapse would have meant the loss of much liquidity in the trading market, making trades more difficult and prices more volatile, industry experts said.
Dynegy announced a deal Friday to buy Enron at a fire-sale price of almost $9 billion in stock, plus the assumption of about $13 billion in debt and $2 billion in preferred stock. The merger is expected to close, barring holdups from regulators, in six to nine months.
As part of the agreement, Dynegy stakeholder ChevronTexaco is giving Dynegy $1.5 billion, which is to be infused today to help shore up Enron's liquidity and preserve its trading franchise.
Some of Enron's former trading partners are still steering clear of the giant.
To facilitate transactions, the various energy trading firms extend credit to one another. Those agreements are contingent upon a partner maintaining an adequate rating.
If the credit rating firms had downgraded Enron's debt to junk status, its trading operation would have been devastated, industry officials said.
As details of Enron's questionable financial dealings have been revealed, Enron's trading partners have been scrambling to reduce their exposure.
Kansas City, Mo.-based Aquila Energy Marketing Corp., for instance, has been ratcheting down its activity with Enron, company spokesman Al Butkus said.
By the end of last week, Aquila's exposure to Enron was "insignificant," Butkus said. "And after all that was revealed on Friday and the downgrading of the credit, we are now at an even lower level."
Atlanta-based Mirant has likewise reduced its exposure and is only doing a limited amount of business with Enron.
Some larger players, however, continue doing deals with the company.
"Reliant Energy has consistently been trading with Enron through its difficulties, albeit with a heightened sense of caution," said Shahid Malik, president of Houston-based Reliant Energy's trading operation.
Charlotte, N.C.-based Duke Energy's exposure stands at $100 million.
"We're continuing the way we have been," said Duke spokesman Terry Francisco.
John Olson, an analyst with Sanders Morris Harris in Houston, predicted it would take the traders some time to digest the merger deal.
"I think people will increasingly come back to Enron just as soon as the $1.5 billion changes hands," he said.
Traders still have incentives to do business with Enron even though it's being sold, as it has a wider variety of products than some of its competitors and its EnronOnline Internet trading operation is regarded as superior.
On a conference call with investors and analysts Monday morning, Dynegy and Enron executives fielded a variety of questions about the merger but refused comment on a Wall Street Journal report that J.P. Morgan Chase & Co. and Citigroup are considering a $500 million investment in Enron.
Analysts remain worried that new and troubling surprises will emerge about Enron's finances, including those that could call into question whether its core trading business is as advertised.
Dynegy executives aren't expecting any such disclosures, but took a conservative approach to calculating merger benefits.
"I believe we have adequately bracketed the downside," said Chuck Watson, Dynegy's chairman and chief executive.
Even with a worst-case scenario, Dynegy still found a "tremendous amount of economic value" in the merger, said Watson, who will take the same roles after the merger.
The deal, Dynegy said, will add 90 cents to 95 cents per share in earnings for current Dynegy shareholders. And that's before cost savings that are expected to run $400 million to $500 million a year.
Dynegy detailed two escape clauses in the merger deal. For one, if the amount of legal and shareholder claims Enron must pay out is greater than $3.5 billion, it can be called off.
Enron and Dynegy officials also said they will do whatever it takes to keep their key people. But will traders jump ship? "Oh, yeah I'm sure they will," the industry source said.
Jeff Dietert, an analyst with Simmons & Co. International in Houston, believes that a number of Enron's marketers and traders will find Dynegy a strong alternative.
"I firmly believe that the Enron guys like to play on the winning team and Dynegy is a very, very strong player," he said.
That Dynegy was approached by three key Enron executives about a merger showed Dynegy would be getting the full cooperation of Enron's management team, Watson said.
Enron employees working for Dynegy will have to get used to a new culture. Teamwork and fraternal are words often used to describe Dynegy, while cutthroat is used for Enron, which also is known for its willingness to take more risk.
Watson plans to blend strategies and business elements of each.
The new company will include Enron's strong offering of financial products and combine them with Dynegy's base of power plants and other assets, said Steve Bergstrom, Dynegy's president, who will take the same job in the new company.
The post-merger Dynegy will also be more involved in "market-making," which Enron is known for. That's the practice of ensuring orderly markets can exist by acting as both the buyer and the seller of a commodity.
It's unclear whether Dynegy will continue Enron's foray into other commodities such as paper and metals.
Dynegy hopes Enron can complete its planned sale of assets considered outside its core wholesale energy business before the merger closes.
Enron already has deals to sell power utility Portland General Electric along with about $900 million in international assets. Billions of dollars in international projects are for sale.
But Watson said Dynegy isn't interested in seeing the assets go at bargain-basement prices.
"We don't necessarily feel like our back is pinned against the wall in asset dispositions," he said.

Dynegy Pres: Enron's Core Business Is Very, Very Strong

By Christina Cheddar
11/12/2001
Dow Jones News Service

NEW YORK -(Dow Jones)- Dynegy Inc. (DYN) Chairman Chuck Watson said he sees "nothing but upside" ahead from
the company's planned acquisition of Enron Corp. (ENE), which was announced late Friday.

In addition to being a sound strategic move, the deal "injects confidence into the energy markets," said Watson,
founder of the Houston energy trading firm, in a conference call held Monday to discuss the $8.85 billion takeover
of Enron.

On Friday, Dynegy confirmed the widely speculated deal by announcing it would buy its cross-town rival in a stock
swap that values each Enron share at 0.2685 of a Dynegy share.

The sale of Enron for only a quarter of its share price a month ago, or just a quarter of its all-time high of
$90 a share reached just last year, follows an abrupt turn in Enron's fortunes.

Last week, Enron, which is the nation's biggest trader of natural gas and electricity, admitted its financial
statements going back to 1997 couldn't be relied upon and would have to be restated. The company made accounting
errors in recording transactions from some of its limited partnerships. The company also misstated its level of
debt and its shareholder equity over this period.

Enron's partnership dealings are being investigated by the Securities and Exchange Commission, and have sparked
a number of shareholder lawsuits.

Over the past month, new revelations about Enron's web of partnerships and off-balance sheet financing vehicles
have been uncovered almost daily.

During the conference call, Kenneth Lay, Enron's chairman and chief executive, said it was a "very reflective
time" for him.

When Lay transformed Enron from a natural gas pipeline company into a dynamic energy trading company that
was a darling on Wall Street, this was clearly not what he had in mind.

Lay said, "I didn't expect to create the world's next leading energy trading company by merging Enron i
nto another company."

Enron officials said they were continuing their internal investigations of its accounting practices.

"We have disclosed anything and everything we have found so far," Lay said.

Enron President and Chief Operating Officer Greg Whalley, who will remain with Dynegy after the merger
as an executive vice president, said Enron will host a conference call "later this week" to further discuss
recent events at the company. The call will likely be held on Wednesday, he said.

In light of the uncertainty surrounding Enron's financial dealings, it is not surprising that quite a number
of questions during the conference call focused on the company's liquidity and the potential liabilities Dynegy
would assume in the transaction.

Dynegy's acquisition agreement allows the company to walk away if Enron's additional legal and financial
liabilities exceed $3.5 billion. There also are other "material adverse change," or MAC, provisions, officials said.

Upon the closing of the acquisition, Dynegy expects to post reserves to cover the cost of outstanding
litigation, said Dynegy's Doty.

"We believe we have adequately bracketed the downside," said Dynegy's Watson. "There has to be a
substantial, substantial material change in what we already know ... I don't want to minimize the impact.
That's why we have MAC outs."

According to Dynegy's Bergstrom, the economics of the transaction assumed the potential risk
from outstanding lawsuits.

"Even in that worst-case there is a substantial amount of economic value here," Watson said.

Dynegy expects to continue its due diligence in the months leading up to the deal's close, Bergstrom said.

Dynegy's examination of the business so far has turned up "no surprises" in Enron's core energy trading
business, Bergstrom said. However, the merger agreement has provisions in case the company's examination
does reveal any, Bergstrom said.

"We don't expect to find anything material," he said, adding that Enron's core energy business is "very, very strong."

Based on its current information, Dynegy expects the acquisition to increase earnings by 35%, or between 90 cents
to 95 cents a share, before taking into account expected merger cost savings. As a result, Dynegy now expects its full year pro forma earnings for 2002 to be in the range of $3.40 to $3.50 a share.

According to Thomson Financial/First Call, analysts were expecting Dynegy to earn $2.57 a share next year.
In 2000, the company earned $1.43 a share before items.

Dynegy has estimated cost savings from the acquisition at between $400 million to $500 million.

The ratio of stock Enron shareholders will be paid is fixed and there is no collar to limit its range, said a
Dynegy spokeswoman.

There isn't a walkaway provision, but if the deal is terminated, Dynegy will own rights to Enron's Northern
Natural Gas pipeline because of the $1.5 billion cash infusion it will provide to the company immediately.

Dynegy able to give Enron the cash infusion immediately because ChevronTexaco Corp. (CVX), which owns slightly
more than a fourth of Dynegy, will invest $2.5 billion in Dynegy.

The deal has a $350 million "topping fee," a Dynegy spokeswoman said. She explained that if either party decided
to terminated the transaction, that party would owe the other the "topping fee" if it were acquired by another party.

Dynegy's Bergstrom said he expects the acquisition of Enron will receive the needed regulatory approvals and
close within the next six to nine months.

In addition to approval by the Securities and Exchange Commission, the deal must be approved by the Federal
Energy Regulatory Commission.

"We expect FERC to be the pacesetter," Bergstrom said.

Until the deal closes, Dynegy expects Enron will have "sufficient interim liquidity," Doty said.
"(The cash infusion) should immediately put to rest the liquidity concerns."

Based on conversations Dynegy had with the leading credit rating agencies management expects Enron's
ratings to remain investment grade, Doty said. Meanwhile, Dynegy's ratings are expected to be affirmed
at their current ratings, but be placed on watch for a downgrade until the transaction is completed, he said.

According to Doty, Dynegy expects its debt-to-capital ratio will be below 40% after the acquisition closes.

Enron said it wouldn't comment on reports published in The Wall Street Journal Monday that said its bankers,
J.P. Morgan Chase & Co. (JPM) and Citigroup Inc. (C) are considering making an additional $500 million investment
in Enron.

Dynegy officials said marketplace speculation that suggested Dynegy was acquiring Enron because it was afraid
Enron would default on a liability it owed Dynegy was incorrect.

"Dynegy currently owes Enron an immaterial amount, less than $50 million," said Dynegy's Doty.

The chief financial officer also pledged to make the combined company's balance sheet more easy to understand
than that of Enron.

But integrating the two energy trading companies will be more than just combining their balance sheets.

According to Enron's Whalley, the integration of Enron's non-core assets trading businesses will be rather
simple, but combing the core trading businesses "will not be the easiest thing to do."

One prevalent concern is that Enron's trading talent will depart for other jobs, and erode the true value
of the business, which is rooted in intellectual capital.

The employees have seen their value of compensation, which was partially paid in stock options, erode with
the value of Enron's shares.

"I believe we will retain the people we already have," Whalley said. "Most traders want to be part of the
winning team."

However, the officials didn't say whether they were making any specific efforts to retain staff.

Still, in the end, callers were most interested in learning more about Enron's past accounting practices and
the potential effects it will have on the future Dynegy.

Officials from both companies said they couldn't tell yet if there were any additional details that needed to
be revealed.

Enron's newly appointed chief financial officer, Jeff McMahon, said "Could there be more? Possibly.
Do we expect more? No."

Mahon replaced Andrew Fastow, who resigned after questions arose related to a partnership he ran while
chief financial officer of Enron. Fastow's activities are at the center of the SEC probe of Enron's financial dealings.

-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

Dynegy Deal Sets Path Of Resolution For Enron - Analyst

By Christina Cheddar
11/13/2001
Dow Jones News Service

NEW YORK -(Dow Jones)- Dynegy Inc.'s (DYN) proposed acquisition of Enron Corp. (ENE) "creates a
clear path for the resolution" of the liquidity and financial issues plaguing Enron, said Ted Izatt,
a high-grade debt research analyst at Lehman Brothers Holdings Inc. (LEH).

Izatt made the comments during a conference call held Tuesday with bondholders to discuss the proposed
acquisition, which was announced late last Friday.

Lehman's investment bankers advised Dynegy on the transaction. Enron was advised by J.P. Morgan Chase & Co. (JPM)
and Citigroup Inc. (C).

On Monday, the marriage of the two Houston energy traders received a warm reception as equity investors bid up
shares of both companies. Recently, Enron shares traded at $9.25, up 1 cent, or 0.2%, while Dynegy shares changed
hands at $45.00, up 69 cents, up 1.6%.

Enron shares had fallen more than 80% in the weeks leading up to the transaction as the company posted more
than $1 billion in write-offs of failed investments and was forced to restate its earnings going back to 1997
because it improperly accounted for the results at some of its partnerships. The restatement reduced Enron's
profits over the period by 20% and added millions to its debt level. Also, the Securities and Exchange Commission
launched an investigation of the financial dealings of Enron's former chief financial officer, Andrew Fastow.

The chain of events prompted a series of credit rating downgrades and raised doubts about Enron's liquidity
Eventually, the concerns threatened Enron's core energy marketing and trading business because a perception
of creditworthiness is vital to the business.

Izatt said a combination of $1 billion in newly secured bank lines and the $1.5 billion equity infusion from
Dynegy has bolstered Enron's financial position.

With this additional cash on hand, the greatest risk to bondholders is whether the deal closes, said Izatt.

The analyst added he expects the merger to close because both companies are committed to the deal, and he expects
regulators to approve the transaction.

"There is a lot of commitment to get the deal done," he said.

However, if the transaction doesn't close, Izatt said he believes Dynegy's bondholders are "very well protected"
in the transaction.

According to Izatt, Dynegy's bonds are at an "attractive level." The spread on the bonds had widened ahead
 of the announcement of the deal as rumors began to leak into the market, leaving the price of the bond in a
weaker position.

But Izatt does expect Dynegy will merge with Enron, and the resulting company will emerge as a "much stronger
 company," he said.

For example, the analyst expects Dynegy has the potential to achieve more than $400 million to
$500 million in pretax, merger cost savings Dynegy is projecting.

Also, Izatt said Dynegy's cash infusion and purchase will help Enron to retain its position in the energy market.

"Dynegy is there for real," Izatt said. "They intend to see this through to fruition and energy players will
view this and (feel confident enough to trade with Enron.)"

Under terms of the acquisition, Dynegy will pay Enron shareholders 0.2685 of a Dynegy share for each Enron share
outstanding. The value of the stock swap at the close of the market Monday was $10.12 billion.

Dynegy is making an immediate cash investment in Enron with the assistance of ChevronTexaco Corp. (CVX).
Later, when the deal closes, ChevronTexaco will make an additional $1 billion investment in the combined company.

-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com


are you staying with brit's parents??


You asked me to know about any ISO Board activities.  Sue left me a voice
mail saying she went to the last Board meeting and they didn't do much.
There will be another meeting February 1 9:00-6:00, although Sue's not sure
she'll be going.  According to the web the agenda is as follows:

GENERAL SESSION 9:00 a.m. - 5:00 p.m.
1) Public Comment
2) Overview of ISO Financial, Legal & Regulatory Activities
3) Review of Administrative Procedures & Responsibilities of the Board
4) How the Transmission System Works
5) Review of Current Issues Facing California and the ISO
6) Functions of the ISO
7) Review of California Markets & ISO's Responsibilities

EXECUTIVE SESSION 5:00 p.m. - 6:00 p.m.
1) Discussion of Legal Issues Concerning Impending Market Activity
2) Review of Compensation Goals for 2000
3) Review of Current Investigations of the ISO

I did not see any motions or papers that are posted for consideration at this
time.  To review General Session
agenda documents as they appear online go to:
http://www.caiso.com/pubinfo/BOG/documents/
Audio of this meeting is provided via RealAudio on the Internet. For
information, please go to:
http://www.caiso.com/pubinfo/BOG/
All public documents, notices, and information are posted to the Web site as
they are provided to the Board of Governors.

Also, the attached E-mail says the ISO management sent the Board its
congestion management proposal.
---------------------- Forwarded by Mary Hain/HOU/ECT on 01/29/2001 10:11 AM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Woertz, Byron" <BWoertz@caiso.com>
01/29/2001 09:39 AM

To: ISO Market Participants
<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PARTI
CIPANTS@caiso.com>
cc:
Subject: CAISO Notice - Draft Congestion Reform Proposal

  ISO Market Participants:

  On Friday, January 26, the ISO's management sent to the ISO
Governing Board our draft Congestion Management Reform proposal for their
information and review.  This document is posted on the ISO web site at
http://www.caiso.com/clientserv/congestionreform.html
<http://www.caiso.com/clientserv/congestionreform.html> .

  We will let you know more about the CMR process going
forward as soon as details are available.

  Byron Woertz
  Director, Client Relations


Executive Summary:
?	Situation "confused" but filing probably postponed until Monday
?	Could be sooner if negotiations completely collapse, or if commercial paper holders file pre-emptively to the QFs
?	QFs pressuring legislature for rate hikes, in-state generators negotiating with FERC
?	Davis's proposed CPUC payment to QFs would require legislative approval--tough to get before Friday
?	Absent rate hikes, bankruptcy filing against Edison is still best option for QFs- doubts about gas supply contracts and market value of Davis' price proposals

1.	Situation Confused, But Bankruptcy Unlikely Before Monday
The situation in California is described as "confused" due to the flurry of activity by the governor over the last twenty-four hours.  It seems likely that this state of confusion will serve to forestall an involuntary bankruptcy filing until next week, when the situation should become clearer.

2.	Earlier Bankruptcy Possible If....
Sources believe that two events could change this and precipitate an "immediate" filing:  1) a breakdown in negotiations between the governor and the QFs and 2) a PUC order to pay the QFs $1 billion, which would be seen as a preference payment and cause the commercial paper holders to file an involuntary bankruptcy.

3.	QFs Negotiating With Davis, In-State Generators Talking to FERC
Sources report that the QFs are currently either meeting with their lawyers are involved in negotiations with the governor's people and the legislature.  They are reportedly "working on Keeley," since he has actually suggested openly that there needs to be a rate increase.

Sources report that the in-state merchant generators are occupied today with preparing reports for the FERC.  The FERC has made demands that the generators report to them on market conditions, etc. that have governed their reactions.  The reports are due tomorrow.  Sources indicate that FERC has placed these demands to placate the California delegation and to "give the appearance of concern" for the situation in California.  Note, however, that the FERC did not make similar demands on out-of-state generators.

4.	$1 Billion Payment to QFs Requires Legislative Approval, Could Trigger Filing by Commercial Paper Holders
Sources report that the governor continues to focus on trying to get a $1 billion payment made to the QFs to forestall a bankruptcy filing.  He is trying to get the legislature to grant the PUC the authority to order this payment.  This is in spite of the fact that such a payment would be seen by commercial paper holders as a preference payment, and that the money might have to be returned in the event of a bankruptcy filing.  Such an order by the PUC would likely precipitate an involuntary bankruptcy filing by the commercial paper holders.

5.	Why is Involuntary Bankruptcy Still Attractive for the QFs?
Davis/CAPUC plan does not incorporate payments on existing debt and requires a less than "market standard" price concession from the QFs ($75MW 5yrs, $69 MW for ten years).  Current spot market power prices in the West far exceed these values.  QFs who are already off-line have no need to worry about "pre-payments" or future payments for power; they just want payment for the power they have provided.

The key weakness in this proposed plan is the inability of the QFs to fix their costs going forward.  Their biggest cost is natural gas.  The natural gas supply contracts are between the utilities and gas providers.  It would be up to the utilities to fulfill the terms of the contracts.  It does not appear reasonable that a natural gas supplier would enter into a 5- or 10-year gas supply contract with PG&E or SoCal, since in the even of a bankruptcy these contracts could be rejected.  The utilities remain a credit risk.  Unless the price of natural gas is fixed, the QFs cannot enter into 5- or 10-year power contracts at these prices.

Moreover, gas price volatility is expected to increase rather than decrease.  Some sort of state support is needed to fix the gas supply contracts, and there has been no indication that the state is willing to make this sort of commitment.  The state legislature does not seem willing to assume more risk at this point.


Aneela, thank you again for attending our meeting today.  My assistant,
Keegan Farrell, is going to update the Brokerage Agreement list to reflect
our report today and distribute it by the end of the day tomorrow.

The updated list will indicate that the agreements completed recently include:

ING Barrings
Lehman
Jeffries
Salomon
Frost (Deutsche Bank)
Simmons
Robertson Stephens
Raymond James
JP Morgan

Perhaps by the end of the week we will have Goldman Sachs International ready
by Friday and Sanford Bernstein by Monday or Tuesday.  I will keep you
posted.

Cheryl Nelson
Senior Counsel
EB3816
(713) 345-4693


Please let me know if you would like this formatted another way.
 -----Original Message-----
From: 	Choate, Heather
Sent:	Thursday, November 01, 2001 11:27 AM
To:	Beck, Sally
Cc:	Valdez, Christina; Schoppe, Tammie
Subject:	Enron Networks - EA Operations Contact List

Sally,

Per our discussion, please find attached the Contact List for Enron Networks - EA Operations, as they were submitted to Louise Kitchen.

Heather S. Choate
Assistant to Bob M. Hall
Energy Operations
Enron Networks LLC
(713) 853-3278


>

Subject: This was in the Miami Times this morning

By Leonard Pitts Jr.
                         Syndicated columnist

                         They pay me to tease shades of meaning from
social and cultural issues, to provide words that help make sense
                         of that which troubles the American soul. But
in this moment of airless shock when hot tears sting disbelieving
                         eyes, the only thing I can find to say, the
only words that seem to fit, must be addressed to the unknown author
                         of this suffering.

                         You monster. You beast. You unspeakable
#######.

                         What lesson did you hope to teach us by your
coward's attack on our World Trade Center, our Pentagon, us?
                         What was it you hoped we would learn? Whatever
it was, please know that you failed.

                         Did you want us to respect your cause? You just
damned your cause.

                         Did you want to make us fear? You just steeled
our resolve.

                         Did you want to tear us apart? You just brought
us together.

                         Let me tell you about my people. We are a vast
and quarrelsome family, a family rent by racial, cultural, political
                         and class division, but a family nonetheless.
We're frivolous, yes, capable of expending tremendous emotional
                         energy on pop cultural minutiae, a singer's
revealing dress, a ball team's misfortune, a cartoon mouse.

                         We're wealthy, too, spoiled by the ready
availability of trinkets and material goods, and maybe because of that,
                         we walk through life with a certain sense of
blithe entitlement. We are fundamentally decent, though -
                         peace-loving and compassionate. We struggle to
know the right thing and to do it. And we are, the overwhelming
                         majority of us, people of faith, believers in a
just and loving God.

                         Some people - you, perhaps - think that any or
all of this makes us weak. You're mistaken. We are not weak.
                         Indeed, we are strong in ways that cannot be
measured by arsenals.

                         Yes, we're in pain now. We are in mourning and
we are in shock. We're still grappling with the unreality of the
                         awful thing you did, still working to make
ourselves understand that this isn't a special effect from some
                         Hollywood blockbuster, isn't the plot
development from a Tom Clancy novel.

                         Both in terms of the awful scope of its
ambition and the probable final death toll, your attacks are likely to
go
                         down as the worst acts of terrorism in the
history of the United States and, indeed, the history of the world.
                         You've bloodied us as we have never been
bloodied before.

                         But there's a gulf of difference between making
us bloody and making us fall. This is the lesson Japan was taught
                         to its bitter sorrow the last time anyone hit
us this hard, the last time anyone brought us such abrupt and
                         monumental pain. When roused, we are righteous
in our outrage, terrible in our force. When provoked by this level
                         of barbarism, we will bear any suffering, pay
any cost, go to any length, in the pursuit of justice.

                         I tell you this without fear of contradiction.
I know my people, as you, I think, do not. What I know reassures me.
                         It also causes me to tremble with dread of the
future.

                         In days to come, there will be recrimination
and accusation, fingers pointing to determine whose failure allowed
                         this to happen and what can be done to prevent
it from happening again. There will be heightened security,
                         misguided talk of revoking basic freedoms.
We'll go forward from this moment sobered, chastened, sad. But
                         determined, too. Unimaginably determined.

                         You see, there is steel beneath this velvet.
That aspect of our character is seldom understood by people who
                         don't know us well. On this day, the family's
bickering is put on hold. As Americans we will weep, as Americans we
                         will mourn, and as Americans, we will rise in
defense of all that we cherish.

                         Still, I keep wondering what it was you hoped
to teach us. It occurs to me that maybe you just wanted us to
                         know the depths of your hatred.

                         If that's the case, consider the message
received. And take this message in exchange: You don't know my
                         people. You don't know what we're about. You
don't know what you just started.

                         But you're about to learn.


Start Date: 4/9/01; HourAhead hour: 6;  No ancillary schedules awarded.
Variances detected.
Variances detected in Generation schedule.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001040906.txt

---- Generation Schedule ----
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 6 / Preferred:  25.40 / Final:  25.37)
  TRANS_TYPE: FINAL
  SC_ID: ARCO
  MKT_TYPE: 2
  TRANS_DATE: 4/9/01
  UNIT_ID: CARBGN_6_UNIT 1
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 6 / Preferred:  45.00 / Final:  39.32)
  TRANS_TYPE: FINAL
  SC_ID: DELANO
  MKT_TYPE: 2
  TRANS_DATE: 4/9/01
  UNIT_ID: PANDOL_6_UNIT

---- Energy Import/Export Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/9/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_OZZY
  ENGY_TYPE: FIRM

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 6 / Preferred:   2.00 / Final:   1.97)
  TRANS_TYPE: FINAL
  LOAD_ID: PGE4
  MKT_TYPE: 2
  TRANS_DATE: 4/9/01
  SC_ID: EPMI
$$$ Variance found in table tblLoads.
     Details: (Hour: 6 / Preferred:  50.69 / Final:  40.69)
  TRANS_TYPE: FINAL
  LOAD_ID: SCE1
  MKT_TYPE: 2
  TRANS_DATE: 4/9/01
  SC_ID: EPMI


I should be here -- Muni Man.   Thanks..

 -----Original Message-----
From: 	Rosman, Stewart
Sent:	Wednesday, July 11, 2001 10:11 AM
To:	Swerzbin, Mike; Crandall, Sean
Subject:	PRM SLICE MEeting

Jeff Fuller will be in town on August 3rd 12:00 to discuss information exchange.  Let me know if you are available.

Stewart


The following servers will be coming down, please see below for more details
and scheduled times :

-------------------------------------------------------------

          SYSTEM OUTAGE NOTIFICATION

-------------------------------------------------------------

FOR:  PR1 - Apollo Production

Outage Start: (CST) 4/4/2001 at 05:00:00 PM

Outage End: (CST) 4/4/2001 at 05:30:00 PM

Outage Abstract:  Production will be down for Emegency maintenance.

Outage Description: Production will be down for Emegency maintenance.

Outage Implication: No access to system during this outage.

Contact Name:   ISC Help Desk   #:  713-345-4727


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/06/2001
05:21 PM ---------------------------

Pinnamaneni Krishnarao
04/05/2001 01:24 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Gutenberg presentation - revised

FYI.


Modify E-mail Preferences   horiz rule     PageOnePlus toolbar  [IMAGE]          Thursday, June 7, 2001     ON THE FRONT PAGE   Panel Tells Bush Global Warming Is Getting Worse   By KATHARINE Q. SEELYE with ANDREW C. REVKIN In a conclusion that may change President Bush's environmental policy, a panel of scientists said that global warming was a real problem and getting worse.      U.S. Will Restart Wide Negotiations With North Korea   By JANE PERLEZ President Bush said he hoped that renewed talks with North Korea would foster reconciliation between the reclusive Communist government and South Korea.      Study Finds Heart Regenerates Cells   By LAWRENCE K. ALTMAN Researchers reported that contrary to medical dogma some human heart muscle cells do regenerate after a heart attack, though generally too few to repair all the damage.      Coalition Builder Wins Los Angeles Mayoral Race   By TODD S. PURDUM Los Angeles City Attorney James K. Hahn won the city's mayoral election and quickly promised bonds between both his supporters and those of his opponent, Antonio Villaraigosa.      Judge Refuses McVeigh's Bid for a Reprieve   By DAVID JOHNSTON Despite the F.B.I.'s belated discovery of evidence, a federal judge rejected Timothy J. McVeigh's request to postpone his execution, which is set for Monday.      New War Memorial Is Shrine to Sentiment   By HERBERT MUSCHAMP Friedrich St. Florian's design for the National World War II Memorial in Washington diminishes the substance of its architectural context.      Online, Married Priests Aid Flock at Odds With Church   By SUSAN SAULNY The fractured nature of the Roman Catholic Church and the nationwide shortage of priests has made www.rentapriest.com a success.     ALSO IN TODAY'S TIMES   Armies of Europe Failing to Meet Goals, Sapping NATO   By MICHAEL R. GORDON Two years after NATO vowed to improve its military effectiveness, the alliance is falling short of its goals, leaving a huge gap between the United States and its European allies.      New Senate Leader Urges 'Principled Compromise' as Democrats Take Over   By ALISON MITCHELL The new Senate majority leader, Tom Daschle, called for "principled compromise" to avoid gridlock in a capital where Republicans no longer hold all the levers of power.      QUOTATION OF THE DAY  [IMAGE]He was sentenced to death by lethal injection, and I find that there is no good cause to delay the execution of that sentence." JUDGE RICHARD P. MATSCH,  of Timothy J. McVeigh.          TODAY'S IMAGES  [IMAGE] Front Page Image    Today's Photos    Advertisement  Today's Corrections    TODAY'S SECTIONS   * International   * National   * N.Y. Region   * Politics   * Obituaries   * Business   * Technology   * Circuits   * Science   * Sports   * Editorial   * Op-ed   * Letters   * Living   * Arts   * Home       SUNDAY SECTIONS   * Arts & Leisure   * Automobiles   * Book Review   * Travel   * Real Estate   * Week in Review   * Magazine             Home  | Site Index  | Site Search  | Forums  | Archives  | Shopping    News | Business  | International  | National  | New York Region  | NYT Front Page  | Obituaries  | Politics  | Quick News  | Sports  | Health  | Science  | Technology/Internet  | Weather  | Editorial  | Op-Ed    Features | Arts  | Automobiles  | Books  | Cartoons  | Crossword  | Games  | Job Market  | Living  | Magazine  | Real Estate  | Travel  | Week in Review    Help/Feedback  | Classifieds  | Services  | Newspaper Delivery  | New York Today    Copyright 2001 The New York Times Company    	[IMAGE]	[IMAGE]


-----Original Message-----
From: Angie.Buis@enron.com [mailto:Angie.Buis@enron.com]
Sent: Tuesday, February 29, 2000 9:35 AM
To: Heather.Choate@enron.com; Marvia.Jefferson@enron.com;
Lisa.Shoemake@enron.com
Cc: Kathleen.Kelley@enron.com; Bill.D.Hare@enron.com;
George.Smith@enron.com; Edward.Terry@enron.com;
Lisa.B.Cousino@enron.com; Mam@teamlead.com; ERW@teamlead.com;
Kimberly.Perkins@enron.com
Subject: COACHING SESSIONS WITH MIKE MAULDIN

I regret to inform you that this week's coaching sessions with Mike Mauldin
have been cancelled.  Mike has asked that we keep the recurring schedules
in place beginning with next week (March 6).


Please answer all of the questions below...
Are we going to look for a ring tomorrow?
Do you know what size she wears? (I'm working on finding out myself)
What time frame do you want to work with for an engagement? (Yes a TIME FRAME)  (ie, in a week, month, year...)
I have the impression that beth wants you to take care of the whole wedding thing, is this true?
She says she wants to go away (deffinately tropical because she has never seen blue water) and invite close family members (parents sibblings) and close friends by sending a letter/invitation.  She says they will need time to save if they are going to come, so I suggested 6 months.
Does this sound appealing to you?
FYI... My brother went away to get married and I have a friend who went away so I have experience in planning tropical weddings.  They are great because only those who you want there come and others aren't affended for not being invited because y'all went away.  You can have a dream wedding for just a little more than what a nice vacation would cost.  It is alot cheaper than having one here which is probably important if y'all are paying for it.
What is my budget for the ring?
What is my budget for the wedding?
Please answer all of the questions above to the best of your ability.  This is crucial to the success of your engagement.  Thanks for your help!
Your Friendly Wedding Consultant
Ashley Landry
EnFORM Technology, LLC
Office: (713) 350-1933
Fax: (713) 438-1933
Email: ashley.landry@enform.com


Attached are revised documents in Word Perfect blacklined to show
changes from the last versions distributed.

 - 266238.wpd
 - 266242.wpd
 - 266243.wpd
 - 266245.wpd
 - 266253X.wpd
 - 266256X.wpd
 - 266276X.wpd
 - 267358.wpd
 - 267509.wpd
 - 268701.wpd
 - 268701X.wpd
 - 268741.wpd
 - 268744.wpd
 - 268748.wpd
 - 268752.wpd


A meeting has been scheduled for 3:30 PM in EB1336 for today, December 10th, to discuss contracts and administrative solution to assure electric bills are paid and compressor continue to operate.  Charlie, we will call you in your office.  If others in Omaha want to participate please gather in Charlie's office.

Thanks,
James


Hello! The HoustonChronicle.com Metropolitan section for Thu. Dec. 14, 2000
delivers news and information at the click of a button. If you ever wish to
stop this email to rgay@ect.enron.com, just click this address:
http://www.chron.com/mail/nph-unity.mpl?id=-566112960

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	?	Thu. Dec. 14, 2000

		TODAY'S METROPOLITAN STORIES
		from the pages of the Houston Chronicle

		Hale: This will giveth and taketh away

		Houston makes race for gold official
		 Buoyed by a strong public mandate after 75 percent of voters blessed its
plan, the group working to bring the 2012 Summer Olympics to Houston formally
submitted its bid for the mega-event Wednesday.
		Race-based admissions upheld in Michigan
		 A federal judge in Detroit on Wednesday upheld a race-based admissions
policy at the University of Michigan, increasing the chances that the U.S.
Supreme Court will decide whether universities can use race as an admissions
factor.
		City's tree canopy is getting thinner
		Houston's urban forest declined significantly from 1972 to 1999, depriving
the area of $55 million annually in benefits such as reduced air pollution
and enhanced flood control. The findings are part of a study released today
that recommends adopting policies to reverse the deforestation trend.
		City Council members battle over street-cutting
		 Tempers flared Wednesday as Houston City Council grappled with how to
regulate companies that cut up city streets.
		Jury told of Phillips cover-up in closing
		 Phillips Petroleum Co. is engaged in a cover-up and needs to change the way
it does business, said the attorney representing a family in a wrongful-death
case against the company.
		Power knocked out for 288,500 customers
		Humble man looks to sell 'ultimate gift'
		63 roosters seized at suspected site of cockfights
		Katy couple may settle claims from DWI case
		Routine land deal ignites tempers in Waller CourtyCounty
		Seven flee San Antonio prison unit
		Houston man to be tried in Tennessee
		Smith set to reveal marriage details
		Audit finds flaws in contracts for low-income housing
		Lawyer appointed in slain-deputy case
		Fatal wreck on bad road nets $19.2 million ruling
		Area briefs

			?


Latest draft of turbine contract for LV Co Gen.

ckm
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/24/2001 06:07
PM ---------------------------

"Thompson, Peter J." <pthompson@akllp.com> on 04/24/2001 02:56:48 PM
To: "Kay Mann (E-mail)" <kay.mann@enron.com>, "Bill Williams (E-mail)"
<Bill.Williams@enron.com>, "Dale Rasmussen (E-mail)"
<Dale.Rasmussen@enron.com>, "Lee. Johnson (E-mail)"
<lee.johnson@ss.ps.ge.com>, "Kent. Shoemaker (E-mail)"
<kent.shoemaker@ae.ge.com>
cc: "Pipitone, Paul" <paulpipitone@akllp.com>, "Cobb, Chris"
<chriscobb@akllp.com>

Subject: LV Cogen Turbine Agreement

Attached please find the latest LV Cogen Turbine Agreement (second
document below) that provides notices to Enron North America, as agent
for E-Next Generation, and changes to the signature blocks.  Also
attached is a blackline (first document below) showing changes made to
the version circulated on April 10. Pursuant to instructions received
from Kay Mann and Bill Williams, this version does not contain the
contractor's comments.  To complete the agreement, we will need to
insert the date of execution and Exhibit H-2.
 <<Comparison of LV Cogen Agreement, Versions 3 to 5.DOC>>  <<LV Cogen
Gas Turbine Agreement - Version 5.DOC>>
 - Comparison of LV Cogen Agreement, Versions 3 to 5.DOC
 - LV Cogen Gas Turbine Agreement - Version 5.DOC


Stacey,

Settlements has brought an invoice to zero out a sale of 10,000 mmbtu to El
Paso Merchant Energy for 4/20/00 on PGEV.  There are 2 packages of  5000 deal
numbers 247426 and 247583 on the market side and deal 247676 on the supply
side.  These are HPLC brokered deal on PGEV that are buying and selling the
same 10,000 to El Paso Merchant Energy.  The purchase and sale price is the
same $3.02.  I do not know the intent of these deals so I am hesitant to just
zero out the volume.   Will you let me know if that is okay?


The Governor cancelled the meeting at the last minute.  Apparently, he was
trying to schedule a meeting with Clinton and our meeting conflicted, so we
were bumped.  We are trying to set a new time.  I will share with the
Governor's energy advisor the information and recommendations all of you
helped put together.  Thanks


Just a reminder, we are have the meeting today at 8:30 in EB3749.

  Daren, if you have time, please join us in this meeting.  You may be able
to help us resolve some of these issues.  Thanks

Thu

3-7159

---------------------- Forwarded by Thu Nguyen/HOU/ECT on 02/01/2000 08:03 AM
---------------------------

	From:  Thu Nguyen                           01/27/2000 08:47 AM

To: Aimee Lannou/HOU/ECT@ECT, George Grant/HOU/ECT@ECT, Robert E
Lloyd/HOU/ECT@ECT, Clem Cernosek/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT
cc:
Subject: MidTex Meeting Feb 1, 2000

Please plan to attend this meeting on MidTex Pipeline, which will cover the
scheduling of HPL's transportation expense on MidTex and purchases off of
this pipeline.

O'Neal:  This relates to the deals I have asked you to modify.  If you have
further questions, they can be address at the meeting.

  Room:  EB3749
  Time:  8:30 - 9:30

Thanks

Thu
3-7159


Paul Murphy has scheduled an Invest. Com. meeting for  Nov. 14th at 7:30 am in Paul's office for the purpose of reviewing our  investment policy and 3rd quarter's investment results.  Please let me know  if you can or cannot attend the meeting.
Thanks,
Robert W. Paddock
Managing Director - Fund  Development
Greater Houston Community Foundation
713-960-1990bpaddock@ghcf.org


Hey chica que pasa?  I am bored and its 2 in the freaking morning and I am
sick and this really sucks.  Anyway this wasn't a mail to complain.   I
wanted to know if you were still having your party on Saturday,  if I was
still invited, if I could bring anything, and how to get to your house.  Well
hope your day goes well.  One more night shift to go and then 5 days off for
me!


I spoke with Ken about the Business Council.  He agreed: errors of commission
are much better than errors of omission.  H e does want to be personally
involved in the invitations from here on and he is very willing to make calls
next week to help get some confirmations.  Deal directly with him . . .
there's no need for me to be in the middle.  Also, a bit of background:
Greenspan is always invited to the reception the night before, but they don't
want to offer him a speaking spot because he won't speak without the press
present.

Thanks again for all your work on the Senate hearing.  I felt overprepared --
which is just how I want to feel -- and every bit of information I needed was
at my fingertips.


I attended Cmmr. Wood's two-day hearing on Wholesale Markets, which concluded
today (8/24) in San Diego.  Three Commissioner's were present (Wood, Lynch
and Neeper) with Duque and Bilas participating by phone.  Administrative Law
Judge Wetzel was present and a transcript was taken.  The quasi-legislative
hearing was the beginning of a record developed for the investigation into
the workings of wholesale/retail markets.  This session focused on Wholesale
markets.  There will be subsequent sessions on retail issues, market
structure and other related issues in the future.  My conclusion from this
session is that Wood is looking for support for increasing regulatory
intervention in the market.

Dan Larcamp, Director of the Office of markets, Tariffs and Rates, FERC, was
present.  He relayed FERC's concern of this matter and a desire to hold
hearings in San Diego.  He also relayed that Hoecker held a press conference
announcing the opening of a 206 investigative proceeding into the operation
of the wholesale markets in California, which carried with it refund
authority.

The format of the hearing was to respond to pre-filed questions developed by
Wood/Lynch.  Each member of the panel would respond to the questions and any
questions posed by the Commissioners, the Judge or the CPUC Attorney.  No
questions were posed by members of the audience.  Yesterday's panel of
academics were comprised of:

1.  Dr. Timothy Duane-UC Berkley
2.  Dr. William Hogan-Harvard
3.  Dr. Frank Wolak-Stanford (ISO Market Surveillance Committee)
4.  David Marcus-Energy Consultant for the Coaltion of Utility Employees
5.  Dr. Gene Coyle
6.  Dr. Jean-Michel Glachant, Universite Paris I Pantheon Sorbonne

The panel was asked to speak as individuals and not on behalf of any
institutions they may represent.  While the purpose of the panel seemed to be
to determine that market power was being exercised and that prices were too
high and therefore not just and reasonable, the panelist stopped short of
blaming generators and market participants in behaving illegally.  The
concensus generally was that market power did exist at various times, but the
mere existence did not constitute bad behavior.  None, with the exception of
Dr. Wolak who is in the process of doing a study using recent data as part of
his role for the Market Surveillance Committee, had done a study.  There was
some discussion, though not much, of the monopsony power of the utilities.  I
think ultimately the group conceded that scarcity of supply amplified
concerns about the exercise of market power, as even the increase in gas
costs did not fully explain the recent spikes.  Wolak believes that encourage
utilities to enter into forward purchases will reduce the exercise of
real-time market power.

Hogan seemed to be there with Sempra's interests in mind.  He continued to
promote expansion of the ISO's abilities to dispatch load as well as maintain
system reliability.  There was alot of discussion about forward purchase
ability for utilities so as to be less subject to volatile market prices.
The concerns were also discussed about the appropriateness of a distribution
utility making purchasing decisions on behalf of its customers.  This
included discussion of separation of these functions and the default provider
role.

Most everyone agreed that rolling back to a regulated market was not feasible
without raising other major and serious concerns, however there seemed to be
support for some interim measures where cost-of-service regulation may be a
good idea and that was during peak periods.  All agreed that a demand
response, and price signals, are important in the long-run, although not to
the extent currently experienced in San Diego.

Today's panel included representatives from SDG&E, SCE and PG&E, TURN, UCAN
and ORA.

While yesterday's panel maintained objectivity as to whether or not
generators were exercising market power to the detriment of the system,
today's panel made no bones about the generators being to blame.

SCE/PG&E indicated their need for relief for recovery of market costs in
excess of the rate freeze.  SDG&E was still on the hot seat for their
inaction in hedging any of their supply.  SDG&E brought up their failed PBR
proposal and ORA and UCAN thought that that may be one way to incent the
utility to be more responsible with their purchases.

UCAN discussed the Governor's direction and the potential for putting rate
caps into affect for residential and small commercial.  He mentioned that C&I
customers are experience difficulties as well.

TURN raised the need for cost-based bid caps and cost-based peaking
contracts.  Mike Florio, TURN, urged against any further divestitute of
assets and alleged market concentration on those assets that had been
divested.  In fact, TURN urged the Commission to seek legislation to clarify
the Commission's authority to order retention of assets.

Neeper urged that part of the solution should be changing the current
requirement to use the PX as the only authorized exchange, although TURN
disagreed.

Bruno Gaillard
08/24/2000 06:09 PM
To: SF Directors, Edward Hamb/HOU/EES@EES, Jennifer Rudolph/HOU/EES@EES,
Chris Hendrix/HOU/EES@EES, Greg Cordell/HOU/EES@EES, Harold G
Buchanan/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Douglas
Condon/SFO/EES@EES, James M Wood/HOU/EES@EES, Gary Mirich/HOU/EES@EES, Dennis
Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES, David Parquet@ECT,
mday@gmssr.com, Paul Kaufman/PDX/ECT@ECT, Marcie Milner/Corp/Enron@ENRON,
Mary Hain@Enron, Harry Kingerski/HOU/EES@EES, James D Steffes/HOU/EES@EES,
Richard Shapiro/HOU/EES@EES, Peggy Mahoney/HOU/EES@EES, Karen Denne@Enron,
Mark Palmer/Corp/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Tim
Belden/HOU/ECT@ECT
cc:
Subject: Daily Update/ Legislative activity - 08/24/00

Siting related bills

1. Good new - The Williamson Act passed the Senate 34-1, It should be heard
at the assembly Saturday or Monday if it is not redirected to a Committee
hearing.

2. There was a long meeting with Ducheny with regards to AB 970. The enviro's
boycotted, they want to draft a bill with Keeley. Labor was obstructionist -
they wanted to gut all the expediting siting  language with regards to all
facilities except for the peaking plants.

Rate Cap related bills
1. The Edison Language on Rate Stabilization may not go anywhere. Edison has
not found an author because of the efforts of Enron and others lobbying
against it. Furthermore there are signs that Gov. Davis opposes it.

2. The Governor's office has issued a proposed language for a rate cap bill.
The language however is not available as of yet. It may be released today or
tomorrow. SDG&E has shown concerns over the content of the bill. They seem to
think that it is worse than initially proposed by the Governor in his press
release.
The bill includes retroactive rate caps through 6/1/00.
The rate cap could reflect Wood's rate cap proposal (6.5 cts cap on the
energy component
The bill does not specify who or how the costs associated with the cap will
be recovered. (The reasoning is that UDCs will be more cautious in their
procurement if there is uncertainty on who is responsible for the costs.)
All of this is speculative. We hope to see the actual language soon.

3. Enron has been working with the Republican leadership to promote a rate
cap proposal similar to the amended language we have proposed for AB2290.
The bill focuses only on SDG&E customers and our major principals are the
following.
The Interim Rate Cap should be limited to residential and small commercial
customers, plus specific institutions that have a significant public role,
such as schools and hospitals.
The Interim Rate Cap should be limited to the period ending December 31, 2001.
The Interim Rate Cap must be structured so that any undercollection is
eventually recovered from the same customers who benefit from the lower rates
provided by the rate cap.


We have received the executed Non-Disclosure Agreement with the referenced
Counterparty dated 10/26/00.  Copies will be distributed.


I spoke to Edmund to get the scoop on what we are going to be doing on the
confirms for Credit Derivatives, and he said that his current understanding
is that all of the confirms will be done out of London.  I communicated that
to Bob Bowen.  He also said that London was going to be hiring 120 people to
deal with the Credit Derivatives business.  Wow!


Hi Jeff,
?
Question for the experts!!
?
With all the rhetoric flying around, it's hard to separate out  reality. Do
you think PG&E would not have declared bankruptcy if the retail  side of the
electric power business had been deregulated when the wholesale side  was?
And if this HAD happened, would it have had an effect on our home utility
bills? Thanks.
?
Rory
?


Notice No. 01-58
February 16, 2001

TO:
All NYMEX Members/Member Firms
All NYMEX Clearing Members
All NYMEX Floor Traders
All NYMEX Operations Managers

FROM:
George Henderson, Vice President

RE:
Options Expiration Operational Procedures for the Trading Floor and Clearing
Members
________________________________________________________________

The expiration date for the March 2001 options contract for Cinergy (NOH1),
Entergy (OTH1), Palo Verde (VOH1) and Cob (WOH1) is Thursday, February 22,
2001.

 GENERAL OPERATIONAL PROCEDURES

All Clearing Members and Qualified Floor Traders that carried an options
position as of the close of business day prior to the expiration day, or
engaged in trading activity on Expiration Day in the expiring options
contract will be required to have a knowledgeable, duly authorized
representative present at their normal work station promptly at 5:30 p.m.
until released by the Exchange staff as specified below.  All adjustments
and/or corrections, must be accompanied by relevant supporting documentation
prior to being incorporated into expiration processing, in essence making the
expiration processing an extension of the afternoon trade resolution
procedures.  All input to the NYMEX Clearing Department will conclude no
later than 30 minutes after floor representatives are released.

Exchange Clearing (299-2110), Floor Trade Correction (299-2068 and 299-2169)
personnel, as well as a representative of the Floor Committee will be
available to assist with the processing of notices of Exercise and
Abandonment, position transfers, trade corrections and other questions or
problems you may have.

CLEARING DEPARTMENT OPERATIONAL PROCEDURES

The Option Expiration process is a screen based process for which all
information is provided on the screens on C21 terminals. No Option Expiration
Reports will be provided. The following screens will assist you through the
Option Expiration process:

MEMBER TRADE INQUIRY
Contains real-time top day trade information, trade information for the
previous 4 business days and trade=s adjusted for the previous 4 business
days by adjustment date.

SINGLE POSITION MAINTENANCE
Contains a real-time snapshot for each option series from the start of day
position to the projected end of day position.

REVIEW ACCEPT REJECT TRANSFERS
Contains all trade and position transfers ATO@ your firm and the status of
each transfer.

REVIEW SUBMITTED TRANSFERS
Contains all trade and position transfer AFROM@ your firm and the status of
each transfer.

EXERCISE NOTICE SUBMISSION
Contains your available long position and an input field to enter the number
of long positions you wish to exercise.

DO NOT EXERCISE SUBMISSION
Contains your available long position and an input field to enter the number
of long positions you wish to abandon.

POSITION CHANGE SUBMISSION
PCS may be submitted either by manual input or by electronic transmission.
Any PCS input on a Clearing 21 terminal will be the input processed by the
system.  This input may be made at any time prior to 6:45 p.m.  Any PCS input
via transmission for that contract series will be disregarded.

ALL POSITIONS ARE DEEMED FINAL
Upon completion of all PCS input, all positions will be deemed final.

EXERCISE/ASSIGNMENT INFORMATION
Will be available to you on the Single Position Maintenance window by
contract series or the Assignment List window which contains all your
Assignments on one window. You will be notified of its availability by C21
E-Mail and by Fast Facts. This should occur within 1 hour of the last PCS
input.

All Clearing Members are required to have an authorized representative(s) at
their C21 workstations in preparation for any communication during the
expiration process.

FAST FACTS
Clearing Members should call the Fast Facts information service 301-4871,
access code 700 for event messages advising Members of the event status.

E-MAIL
Clearing Members should read their C21 E-Mail messages immediately to be
aware of event status.

The standard event Fast Facts and/or E-Mail messages and the sequence in
which they will be announced are:

STANDARD EVENT   APPROXIMATE TIME USUAL         FAST FACTS(F)
MESSAGES   OF MESSAGE  EVENT TIME E-MAIL    (E)
           AVAILABILITY    BOTH      (B)

Announce Out-of-the        5:45PM   5:45PM  F
Money Exercise and In-the-Money
Do Not Exercise Submissions

Announce Final Input to C21   6:30PM   6:45PM  E
Cutoff Time

All positions are deemed final          7:30PM   6:45PM  F

Announce Exercise/Assignment   8:25PM   8:30PM  B
Information Available on the Single
Position Maintenance Windows

All Report Distribution is  11:00PM  11:00PM  F
completed

The times appearing in the Usual Event Time column are based on normal
operational conditions and could vary.

NYMEX EXPIRATION DAY PROCESSING OVERVIEW OF MEMBER REQUIREMENTS

Time: 5:30 PM
Activity: Exercise Notice Submission
Event: Input to C21 Cutoff Time
Reference Number: 1

Time: 5:30 PM
Activity: Do Not Exercise Submission
Event: Input to C21 Cutoff Time
Reference Number: 2

Time: 5:45 PM
Activity: Announce Out-of-the-Money Exercise and In-the-Money Do Not Exercise
Submissions
Event: Fast Facts Notice
Reference Number: 3

Time: 6:30 PM
Activity: Announce Final Input to C21 Cutoff Time
Event: C21 E-mail
Reference Number: 4

Time: 6:45 PM
Activity: Final Input to C21 Cutoff Time
Reference Number: 5

Time: 7:30 PM
Activity: All Positions are Deemed Final
Event: Fast Facts Notice
Reference Number: 6

Time: 8:25 PM
Activity: Announce Exercise/Assignment Information Available on the Single
Position Maintenance Windows
Event: Fast Facts Notice and C21 E-mail
Reference Number: 7

If you have any questions concerning these procedures, please contact Charles
V. Bebel at 299-2130, Angel Rivera at 299-2150 or Anthony Di Benedetto at
299-2152 prior to the expiration date.

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

"http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdo
c=(01-58)"

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.


Just because your trader is out of town on vacation doesn't mean he can't get
a hold of you and make life less than pleasant.  How a person can be in
Hilton Head, SC and still sound like he's going to have a heart attack is
beyond me.


i can't wait till dinner!!!!! it is going to be so good.   mom wants u to
e-mail my soccer coach that we can't make it on sunday....thats all

                                                                     Justin


As per Rob Bradley request, I am sending you the draft slides and talking
points for Ken Lay's speech at the Forum on Power & Energy in the West.  We
are expecting Ken's comments tomorrow or Monday morning.  We will  keep you
posted.

Regards,

Ursula Brenner
ENRON CORP.
+1(713)345-3787

This message (including any attachments) contains confidential information
intended for a specific individual and purpose, and is protected by law. If
you are not the intended recipient, you should delete this message and are
hereby notified that any disclosure, copying, or distribution of this
message, or the taking of any action based on it, is strictly prohibited.


---------------------- Forwarded by Deborah J Edison/HOU/ECT on 11/10/2000
10:46 AM ---------------------------

"Cagle, Donna" <DCAGLE@mariner-energy.com> on 11/10/2000 09:17:55 AM
To: "'Debbie Edison - Enron (Melendrez' Asst.)'" <Deborah.J.Edison@enron.com>
cc: "'Jesus Melendrez (Enron)'" <Jesus.Melendrez@enron.com>
Subject: Mariner Management Meeting Minutes

 - 11-9-00.doc
 - summary.xls


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/23/2000
08:36 AM ---------------------------

Jlpnymex@aol.com on 02/22/2000 03:53:46 PM
To: ecoel@mail.arco.com, jhewitt@ix.netcom.com, vkamins@enron.com,
mmcomisky@equiva.com, pmelia@mail.arco.com, bcsalmonsen@equiva.com,
motowns@unocal.com, dph@swbell.net
cc:
Subject: March 2, NYMEX night at the rodeo

We are so glad you will be able to join us for dinner and the HLSR on March
2, 2000, to see Reba McEntire perform.

Here is the itinerary for the evening:

Depart NYMEX office at 5:30 p.m.by limousine for Pappasito's restaurant
(parking is available across the street on Smith street)

Arrive Pappasito's restaurant, located at 610 and Kirby near the Astrodome,
by
6:00 p.m.  If it is more convenient for you, feel free to meet us at
Pappasito's by
6:00 p.m.  You can leave your car there, and ride with us in the limo to the
Dome, or follow us to the Dome in your car.

Depart Pappasito's by 7:15 p.m. for the Rodeo.

Depart Rodeo at the end of the show, by limo to cars at Pappasito's, and/or
to the NYMEX office.

Please contact me by email or telephone (713-658-9296) as to whether you will
meet us at our office or Pappasito's.  Also please contact me if you have any
other questions or logistical requirements.

I look forward to meeting each of you.

Jana Laird Phillips
Marketing Manager


Dave and Scott,

I saw an article mentioning that EPA published a draft guidance (66 Fed. Reg. 52,403) clarifying the definition of "stationary source" to allow heat/power co-generation facilities to be treated as separate sources from the underlying host facility (e.g., a manufacturing plant) for NSR purposes.

Although the focus of the draft guidance is on cogeneration facilities, I suppose that there might be some general language in there that could clarify the single-source analysis as it pertains to the ancillary equipment at our plants for which no separate BACT analysis was done.  Are either of you familiar with the new draft guidance (or with anything else that we could use to bolster our position on this issue)?

Many thanks,

Ryan

_______________________________________________________________

The information contained in this transmission may contain

privileged and confidential information. It is intended only

for the use of the person(s) named above. If you are not the

intended recipient, you are hereby notified that any review,

dissemination, distribution or duplication of this

communication is strictly prohibited. If you are not the

intended recipient, please contact the sender by reply email

and destroy all copies of the original message.

To reply to our email administrator directly, please send an

email to postmaster@gtlaw.com.


Please note that my E-Mail Address has changed to :

Kirbynrg@swbell.net

Thanks

Kirby


---------------------- Forwarded by Greg Whalley/HOU/ECT on 05/02/2001 09:00
AM ---------------------------

Eric Thode@ENRON
04/30/2001 04:47 PM
To: Mark Frevert/Enron@EnronXGate, Greg Whalley/HOU/ECT@ECT, Jeffrey
McMahon/Enron@EnronXGate, Raymond Bowen/enron@enronxgate, Mark
Koenig/Corp/Enron@ENRON, Paula Rieker/Enron@EnronXGate, Elizabeth
Ivers/Enron@EnronXGate, Mark Palmer/Corp/Enron@ENRON, Karen
Denne/Corp/Enron@ENRON, Glenn Wright/Enron@EnronXGate
cc: Nicki Daw/Enron@EnronXGate, Liz M Taylor/HOU/ECT@ECT, Sue
Ford/Enron@EnronXGate, Marsha Schiller/Enron@EnronXGate, Cindy
Derecskey/Corp/Enron@Enron
Subject: REVISED DRAFT: Enron and Huntco Steel

Attached is the latest draft of the Enron/Huntco release.  We are working
towards releasing this in the next hour or so, or upon approval of all
parties.  If you have questions, please call me at ext. 3-9053.

Eric

---------------------- Forwarded by Greg Whalley/HOU/ECT on 05/02/2001 09:00
AM ---------------------------
From: Michelle Nelson/ENRON@enronXgate on 04/30/2001 08:34 PM
To: Greg Whalley/HOU/ECT@ECT
cc:
Subject: Monday's P&L


Vince:

FYI

---------------------- Forwarded by Shirley Crenshaw/HOU/ECT on 08/01/2000
08:09 AM ---------------------------

Sarah Bolken@ENRON
08/01/2000 08:08 AM
Sent by: Sara Bolken@ENRON
To: Shirley Crenshaw/HOU/ECT@ECT
cc:
Subject: ENA Fileplan

We are records and information management consultants from Millican &
Associates, who have been hired by Carolyn Gilley, ENA's Records Manager, to
formulate a Fileplan for all of ENA's business records. The approach we've
taken to develop this Fileplan is to perform a generic  inventory of each ENA
department's records. Now, we generally meet with an executive (usually a
vice president or director) within each group to first explain this project
and seek permission to perform the inventory, and then to ask that executive
to designate someone within his/her area to serve as our working contact. The
contact is usually someone who is very familiar with their department's
record, and can be a manager or support staff.

There are a number of reasons we are working on this ENA Fileplan project.
Enron, as I am sure you know, creates volumes of paper and electronic
records--much of it has never been captured. Many departments are keeping
records well beyond their legal retention requirements, taking up valuable
and expensive office space. The Fileplan, once completed, will document what
is being created, who has responsibility for it, and how long it must be
maintained.

During our inventory we will attempt to capture both paper and electronic
records. We'll also try to identify any computer systems your area(s) use.
The inventory itself is non-invasive, in that we do not open or look into
file cabinets or desk drawers. It's simply an interview process where the
contact answers a few easy, simple questions.

Please feel free to contact me if you have any questions.  Thank you.

Sara Bolken
X35150


Please see the revised memo, which is the final version.


thanks

are we keeping a log of these as we send them out -- Bob

 -----Original Message-----
From: 	Shackleton, Sara
Sent:	Monday, February 25, 2002 11:21 AM
To:	Bruce, Robert
Subject:	draft letter for calculation of settlement amount/methodology

Bob:

The attached letter can be used for terminated or non-terminated parties; just tweak the letter.

 << File: #631941 v2 - Draft letter from Enron to XYZ Corp. - January 20021.doc >>

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490


I will be in San Antonio attending an offsite meeting hosted by Rick Causey
on Wednesday and Thursday, September 13 through 15.  I will leave the offsite
meeting before its conclusion on Friday, so that I can attend a lunch meeting
with Philippe Bibi, Rick Buy, Ted Murphy and Bill Bradford to discuss common
needs around risk systems.  I will be in the office the afternoon of
September 15.

Patti Thompson, my assistant (x39106), will have telephone numbers where I
can be reached.  Key contacts while I am out are listed below:

 Natural Gas Operations  Steve Jackson   x37070
       Bob Hall   x36956
       Leslie Reeves  x37962
 Power Operations   Stacey White  x31870
       Leslie Reeves  x37962

 DPR      Mike Moscoso  x35242
 MPR      David Maxwell  x36983


Mark & Jason,

Karen is referring to slides 2-3 in the presentation in the paragraph in red
below.  I don't see any issues with us having the words below at the bottom
of each powerpoint slide.  Could you please confirm this?

Thanks in advance,
Rahil
3-3206
---------------------- Forwarded by Rahil Jafry/HOU/ECT on 06/14/2000 10:36
AM ---------------------------

"Karen Purvis" <kpurvis@viant.com> on 06/13/2000 11:14:09 AM
Please respond to <kpurvis@viant.com>
To: <rahil.jafry@enron.com>
cc: <dave.samuels@enron.com>
Subject: enron online Viant powerpoint template

Rahil,

Attached is the powerpoint template that we (Viant) put together.  Mike and
Dave believe this is the version that we want to go with, but we should
check with Kal since he spent time on the ppt template that he developed.

Also attached is the functional spec for the FYINet powerpoint player.

In addition, you will want to have legal review the copyright trademark at
the bottom of the template.  There was some concern that EnronOnline is not a
legal entity.

thanks, Karen

 - EnronOnline_template.ppt