-----Original Message-----
From: PennFuture [mailto:pennfuture@pennfuture.org]
Sent: Wednesday, September 26, 2001 2:52 PM
To: Friends of PennFuture
Subject: PennFuture's E-Cubed - Straight to the Source

PennFuture's E-cubed is a commentary biweekly email publication concerning the current themes and trends in the energy market.
---------------------------------
September 26, 2001
Vol. 3, No. 18

Straight to the Source

Last year when PECO Energy and Unicom merged to form Exelon it was big news. Importantly, the merger settlement provided $32 million to fund the development of renewable energy in Pennsylvania.

This year, the company's wholesale trading and marketing unit, Power Team, presented renewable energy advocates with a big surprise - signing long-term contracts to purchase the output of three new wind farms in Pennsylvania. These contracts were not required as part of the merger settlement, and are not included in the $32 million earmarked for renewable energy funding.

Now a key force in renewable energy development in the East, the Power Team contracts are essential to bringing 78 MW of generation online from these new wind farms, two of which will be operational next month. The 15 MW Mill Run wind farm is scheduled to being operation next week, and the 9 MW Somerset wind farm is scheduled to begin commercial operation the following week.

Mike Freeman, the Power Team trader who made the burgeoning wind energy business in Pennsylvania possible, gave us some insight into Exelon's renewable energy commitment as well as how wind energy can be integrated into America's power grids.
---------------------------------
What's in Power Team's renewable portfolio?
We have 525 MW of hydro that is not pumped storage, 150 MW of wind, 100 MW of landfill methane, 35 MW of Municipal Solid Waste, 20 MW of wood waste, and 16 MW of scrap tires.

All of the wind is Green-e certifiable as "new" resources. All of the landfill methane is qualified under Green-e, but only 10 MW is new generation. Of the hydro, all of the generation is in larger projects that have been or are eligible for certification under the low-impact hydro standards. The MSW and tire projects are not qualified under Green-e, but the biomass plant is.

Why is Power Team developing a renewable portfolio?
There were two principal reasons: a perceived demand for renewable energy products in the wholesale marketplace, and a desire to diversify our portfolio from the perspectives of fuel, emissions, and cost.

Was there internal resistance or other issues to overcome?
I think the initial reaction was that renewable projects would be a very minor sidelight to our overall business. I don't think many people paid attention to the implications of renewable portfolio standards or external corporate mandates for renewable purchases. Part of the hands-off approach was due to, I believe, a sense that renewable products only meant the re-packaging of existing generation, not changing the power system in any way.

Over time I think many people got comfortable with the idea that the creation of products potentially could initiate new projects that would change the power system. For me that's the most important part of our participation - to help encourage new development. I also think that management began to get comfortable with the idea that renewable energy products could be profitable, and that demand for these products could be sustaining.

Will this encourage new development?
Generators get a creditworthy counter-party that is not only willing to buy all of the energy at the generator location, but is also willing to talk about additional new projects. Over time, other market intermediaries such as power marketers and retail suppliers may become interested in doing the same. If this chain of events occurs, I think we may even see renewable credits traded over the counter, just like other energy products now.

How do renewables fit into Power Team's overall business strategy?
We are a growth company and are constantly in search of ways to sensibly increase our overall generating portfolio. So bringing on new renewable generation into our supply mix really is part of that overall strategy. More specifically, we believe there is sustainable demand for renewable energy, not only because of mandates such as renewable portfolio standards, but also because of natural demand. The average person may not think of it this way, but in supporting the idea of paying a premium for renewable energy I think that people implicitly are accepting the notion that renewable energy is an essential component of how we as a country intend to manage our future energy requirements.

Why Wind?
There's no question that the momentum for wind projects began to build as a result of the PECO restructuring and merger settlements, under which PECO provided funds for new wind projects. A second reason is that the forward electric markets began a steep upward climb beginning in 1998, and especially the off-peak power market beginning in 2000 and continuing into this year. A third reason was the rapid increase in electric demand in the last five years, and a realization that we need to develop a wide-ranging set of answers to meeting the demand, including supply-side and demand-side solutions. We felt that wind generation could play a role on the supply side while meeting what seems to be a growing demand for renewable sources.

What are the primary financial considerations for a wind deal?
The first is probably the need for a long-term contract. Wind generators typically want to enter into fixed-price, long-term agreements to make it easier and cheaper to borrow money and to provide a stable revenue source over a long period. We don't have a problem with long-term deals per se, although we do want to emphasize diversity in our contracting as well. We don't want to hold multiple long-term agreements and nothing else.

In my discussions with generators so far, there has been some flexibility on contract length. In fact, our willingness to enter into a long-term contract is perhaps the key ingredient to getting a wind project financed and built. Beyond the long-term contract, the wind developers want to do business with a creditworthy company that has an investment-grade rating. Exelon Generation is rated A- by S&P so we are a natural counter-party for project financing. Right now, there are not very many long term buyers out there with the kind of credit-worthiness that we have.

Will that always will be the case?
No. If we're right about long-lasting demand, I think other large companies, including distribution companies, will participate in the purchase of energy from these projects. We've teamed up with a retail marketer, Community Energy, to stimulate demand and market wind energy in ways that will move companies to buy it. In the development of conventional generation, it is not always necessary to enter into 20-year agreements for a project to get built. For example, a developer may want to hedge off a portion of the output on a long-term basis but will be willing to sell the rest of the output for shorter periods. And in some cases, the financing source may be comfortable with a shorter-term agreement for the whole thing.

Is there a financial advantage for wind?
If one's view is that the future value of energy is higher than the present value, a generation source with no fuel risk obviously is good to have. Wind has one key advantage over other resources - perpetual availability without any fuel costs or price volatility. This helps mitigate the other risks that wind does present.

It is of course difficult to predict what will happen even in the near term. But I am a believer in broad trends or cycles that are relatively easier to project, outside of significant advances in technology. Over a long period of time, 15 or 20 years, I think the probability of fixed-price wind energy riding out the low cycles while providing a greater amount of benefits in the high cycles is higher than the opposite.

I do believe that the demand for wind generation will be sustained at a moderate premium over generic electricity prices for the next 15 to 20 years.

Is it difficult to integrate wind into your portfolio?
With conventional generation and firm transmission paths, a power marketing entity such as Power Team can bring its resources to the highest markets, whether they are hourly, daily, monthly, or longer. Such transactions are supported by a complex communications network that notifies transmission providers of the timing, amount and ultimate sink of expected output.

The contracts that we enter into on conventional generators depend to a great extent on economic structures that ensure as much as possible that the generator will fulfill our dispatch schedule as close to 100% of the time as possible, so we can avoid the punitive imbalance fees that transmission providers impose when delivered energy doesn't match scheduled energy. The approach we take on wind generation must be quite different, because wind plants provide intermittent output that is difficult to predict within reasonable boundaries of accuracy.

I think the serious wind developers know we are serious about incorporating wind energy into our portfolio. We're one of the biggest physical movers of power in the country and have a significant amount of assets - that must count for something in terms of our ability to more easily integrate a 50 MW wind project into our overall mix.

How does intermittent generation add complexity?
A wind farm generates electricity when the wind blows, not when you flip the switch on. It takes a lot more than I expected to accommodate intermittency, even for an experienced organization like ours, because the transmission system and the operational rules and procedures were not developed with wind generation in mind. You don't have the ability to give transmission providers real-time information for purposes of regulating the system between supply and demand.

In PJM, where generators can offer increments of generation on a day-ahead or real-time basis, and receive (or pay) market-clearing prices depending on actual generation, wind energy can be offered into the system in one of several different ways without experiencing significant imbalance penalties. An obstacle, and we're working with PJM on this right now, is that PJM as the transmission provider typically requires no shorter than 20-minute notice when self-scheduled or must-run generators expect to produce electricity or expect to stop producing electricity. For purposes of regulating the system, PJM then has the ability to tell the self-scheduled generator to go ahead and generate, or to hold off until the energy is needed as a result of the real-time balance of supply and demand.

This will not be practical with wind generation. We'd literally have to assign a trader to the task of monitoring highly suspect expected output from our wind plants and then calling PJM every hour to determine what to do. In the must-run scenario, we'd still have to notify PJM of expected output so PJM can regulate the system with other generators. Either way, we'd have to predict output, which is a dicey
proposition.

Does that make wind generation unreliable?
Not at all. We've got excellent modeling to predict the output from wind generation over a longer period of time, such as a full year. Those predictions underlie our contracts. But it's another thing to tell the wind when to blow. The wind energy industry is working on this from the perspective of improved wind forecasting and a more automated approach than what I've described. In PJM, a 54,000 MW system, this may not seem to be a problem when there is only about 25 MW of wind generation in the system right now, but PJM wants to institute market rules that will be appropriate for a larger amount of wind generation when it arrives. A certain magnitude of wind generation will cause PJM to change the way it now regulates the system.

The complexity cannot be underestimated and we will be part of the solution.

How can scheduling and other rules  better accommodate intermittent resources like wind?
An alternative is for the transmission provider to model the output from a wind plant as "negative" load instead of generation. Which is to say, when the plant is generating electricity, the system load will be reduced by the amount the plant is generating. When the plant is not generating, the load will increase. A tradeoff of that approach is that load typically pays ancillary services expenses such as regulation and spinning reserve. In this unique circumstance, which of the ancillary services apply to negative load, and at what level? We're working with PJM on these questions.

I'm uncertain whether a significant amount of so-called negative load will require any kind of real-time notice to the transmission provider. Of course the transmission systems are operated to react to the unpredictability of load, and one can view the unpredictability of wind generation in the same way. Other countries, and the western U.S. transmission systems, have figured out how to handle large amounts of wind generation, and so can we.

Are you working on other approaches?
Another possibility is to dynamically schedule the output from a wind plant that is situated in a control area without a real-time energy market, to a control area that does have such a market. The output signal from the plant would be available to the transmission provider in the second control area on an automated basis.  The output then becomes part of available supply from moment to moment. However, notice requirements would not be sidestepped with this approach.

Will PJM resolve these problems?
Yes. PJM is progressive and innovative, and has indicated to us that they are willing to work with us to find solutions to the scheduling/imbalance issue. It's hard now because we're breaking new ground. I expect that it will be much easier for the next projects developed.

How big might your renewable portfolio get? Will you keep signing more contracts for new projects?
As long as we continue to see demand for renewable energy, we'll continue to look at projects where there are energy markets whose long-term forward economics support the purchase of energy. I'd like to aggregate a significant amount of wind generation in a single market, such as PJM, to be able to provide PJM with a more diversified supply curve - with multiple projects it may be possible to smooth the output.

We need to do business with companies that have the financing and the organizational will to get these projects completed. We are looking to form relationships with companies that we can build on. If we execute a contract successfully, we'd like to apply the same concepts to additional projects with the same company. Examples of that are Atlantic Renewable Energy Corp. and National Wind Power.

What are some key developments to make the industry grow faster?
We need technological efficiencies to drive down the cost of the equipment, standardized approaches to the transmission of wind generation, financial innovations to allow more risk-sharing, and hybrid approaches such as wind and energy storage.

Perhaps most importantly, we need consumers to buy the wind energy!

---------------------------------
E-cubed is available for reprint in newspapers and other publications. Authors are available for print or broadcast.

PennFuture (www.pennfuture.org), with offices in Harrisburg, Philadelphia and Pittsburgh, is a statewide public interest membership organization, which advances policies to protect and improve the state's environment and economy. PennFuture's activities include litigating cases before regulatory bodies and in local, state and federal courts, advocating and advancing legislative action on a state and federal level, public education and assisting citizens in public advocacy.

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All testing was completed successfully.


Laura Gross
1480 Minor Ridge Ct
Charlottesville, VA 22901
laura_sarah@hotmail.com

To Mr. Ken Lay,

I'm writing to urge you to donate the millions of dollars you made from selling Enron stock before the company declared bankruptcy to funds, such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills.  Enron and you made millions out of the pocketbooks of California consumers and from the efforts of your employees.

Indeed, while you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out.  And Enron made an astronomical profit during the California energy crisis last year.  As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt.

The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

Sincerely,

Laura Gross


I have reviewed the attached revised guarantee and find it acceptable, but
for the following two minor items:

Paragraph 2:  As I discussed with Sara (and she found this acceptable), we
prefer to be more specific and replace the proposed "the nature of the
claim" with "the underlying agreement and the parties thereto".

Paragraph 8:  The insertion at the end of the Paragraph should begin with
"Capitalized".

Thanks.

-----Original Message-----
From: Samantha.Boyd@enron.com [mailto:Samantha.Boyd@enron.com]
Sent: Wednesday, January 31, 2001 4:05 PM
To: barrettp@coned.com; douglasp@coned.com; rozmusg@coned.com;
jaina@coned.com; lublingc@coned.com; irwinp@coned.com; fortem@coned.com;
dooleys@coned.com
Cc: Janelle.Scheuer@enron.com; Sara.Shackleton@enron.com
Subject: Consolidated Edison Company of New York, Inc.

Please find attached our final draft of the Guaranty.   I have also
attached a red-lined version for your convenience.  Should you have any
questions, please contact me at the number referenced below.

(See attached file: Guaranty(Consolidated Edison Co of NY) - A (RED).doc)

(See attached file: Guaranty(Consolidated Edison Co of NY) - A.doc)

Samantha M. Boyd
Sr. Legal Specialist
Enron North America Corp.
1400 Smith, EB3802A
Houston, TX  77002
Phone:  (713) 853-9188
Fax:  (713) 646-3490
email:  samantha.boyd@enron.com << File: Guaranty(Consolidated Edison Co of
NY) - A (RED).doc >>  << File: Guaranty(Consolidated Edison Co of NY) -
A.doc >>


Let's hold off for now.  More info shortly.

Jeff

 -----Original Message-----
From: 	Hoog, David
Sent:	Monday, November 19, 2001 10:19 AM
To:	Shankman, Jeffrey A.
Subject:	expenses

i was planning a meeting in portland to discuss a couple of new deals and i would need to have 3 people (inluding me) fly out there next week.  the only fares are around $2k.  given the new expense policy, i wanted to see if you would have any problems with that.  i am typically very frugal with travel and always assess the cost-effectiveness.  the deals have about $1m value and will be more likely to close in person.  i need to know by end of today.  thanks.

i also have a 1-sheet strategy brief that i wanted to go over w/ you & mike earlier.  we should come back to that now.


U.S. Panel Proposes Big Market Change To Curb California's Electricity Prices
The Wall Street Journal, 11/02/00

U.S. Proposes Changes in Electricity Marketing in California
The New York Times, 11/02/00

The Cutting Edge U.S. Urges Major Fixes for State's Power Market Energy:
Federal panel says electricity crisis is product of flaws in deregulation,
but it stops short of ordering reductions in sky-high prices.
Los Angeles Times, 11/02/00

U.S. Panel Proposes Big Market Change
To Curb California's Electricity Prices
By Rebecca Smith
?
11/02/2000
The Wall Street Journal
Page A3
(Copyright (c) 2000, Dow Jones & Company, Inc.)
The Federal Energy Regulatory Commission proposed sweeping changes in
California's deregulated electricity market in a bid to push down high
electricity prices.
The proposed order, which will be open to industry and public comment before
being implemented, comes as Californians are suffering record high power
prices. The proposals go further than many industry watchers had expected but
stop short of ordering that profits be seized from generators and refunded to
consumers, as the state's utilities and many public officials had demanded.
The move also marks the first time the federal government has intervened to
make major changes in a state market since the era of electricity
deregulation began four years ago.
"California's market had become a threat to the health and financial
well-being of the average citizen," said FERC Chairman James Hoecker. "We had
to do something after the tsunami hit."
The draft order proposes to cap wholesale electricity prices for two years at
$150 per megawatt hour but to allow electricity-plant owners to receive
higher prices, on a case-by-case basis, if they can demonstrate they deserve
it. The cap in New York and New England, other deregulated markets, is $1,000
per megawatt hour. The cap has been set higher there because competition in
those markets has held down retail prices.
The four-member commission, in authorizing the new "soft cap" for wholesale
prices charged in California, dismissed a variable-price scheme adopted last
week by the California Independent System Operator, the organization
responsible for keeping enough electricity on hand to meet actual demand.
That scheme, which now won't be implemented, would have capped prices at
between $65 and $250 per megawatt hour, depending on demand.
An important element in FERC 's new pricing plan is that it makes it less
likely that a single generator will be able to effectively set the price that
everyone receives, as has previously been the case. Under the old regime,
even a small generator could ramp up prices for the entire spot market if it
could position itself as the last unit called into service to meet demand.
The commission came down hard in its interpretation of the high prices seen
in the California market last summer. It said the wholesale prices paid to
generators failed to satisfy the federal test that electricity rates be "just
and reasonable." But Mr. Hoecker, FERC 's chairman, also said the commission
had no authority to order profits seized from power generators and traders so
that refunds could be made to those who paid the high prices. "We exercise
such authority as Congress gives us," he said. "It's as simple as that."
Mr. Hoecker acknowledged that FERC 's decision not to seek refunds would
undoubtedly disappoint California regulators, utilities and consumer
advocates. "They expected a lynching and . . . the disgorgement of ill-gotten
gains," he said.
FERC 's decision to not take action on refunds, at least for now, leaves the
state of California with a major mess on its hands. Since June, wholesale
power costs have exceeded the amount utilities were able to charge their
customers by more than $5 billion. For now, utilities are footing the bill
since customer rates are frozen and it is impossible to pass those costs
along. But the utilities are lobbying state regulators for permission to dump
the cost on consumers, offering to soften the blow somewhat by stretching out
the collection period over four or five years. State regulators and
legislators, without help from FERC to retrieve profits from generators and
traders, now have an unpalatable choice: leave the burden on utilities or
back-bill consumers who never asked for deregulation in the first place.
While the FERC proposal does nothing to remedy the problem of past
shortfalls, the commissioners said they were doing their utmost to push down
prices in the future. FERC said it wants to eliminate a requirement that
California's investor-owned utilities buy and sell all their power through
state-sanctioned energy auctions -- regardless of the prices in those
markets. That is the law now. This simple change would enable utilities that
have sold most of their plants and buy power in the open market to hedge
their price risk by signing contracts with a variety of suppliers.
The commission also effectively issued a vote of no confidence to the
governance structure used by the state's market-making organizations, the
ISO, which operates the transmission system and runs a "balancing market" to
keep energy supplies in sync with fluctuating demand, and the California
Power Exchange, which runs a day-ahead market and a forward auction.
Both organizations have large,unwieldy stakeholder boards consisting of
representatives of different interest groups such as generators, utilities,
large consumers and others and have been accused of putting the parochial
interests of members ahead of the state's 35 million consumers. "They've
become a debating society among interest groups," says Curt Hebert, one of
the commissioners.
FERC said it wants the boards of the ISO and the power exchange dissolved,
most likely within 60 days. In their place, it wants smaller, disinterested
boards such as those that exist in the East, where New York, New England and
the mid-Atlantic states all have ISOs. It didn't, however, order the boards
merged as some members had speculated might occur.
Terry Winter, chief executive of the ISO, said he was an "avid supporter" of
the stakeholder boards that looked like a worthy experiment in democracy
"until all the heavy financial and political pressures caved in on them" last
summer. This year alone, the ISO board changed price ceilings three times as
different coalitions garnered the necessary votes, each time sending shock
waves through the markets.
In general, observers reacted positively to the FERC proposals, which will be
the subject of a public hearing on Nov. 9. Generators were relieved there
won't be refunds and were happy that the new "soft cap" system would allow
price variation among generators with different costs. Steve Bergstrom,
president of Dynegy Inc., which owns power plants in California, said he is
pleased " FERC has shown it isn't going to stop deregulation."
Utilities were pleased at the effort at cost containment and purchasing
flexibility. But Mike Florio, an attorney for a San Francisco consumer group
who sits on both the ISO and Power Exchange boards, said he finds it
impossible to reconcile FERC 's conclusion that prices weren't fair with its
reluctance to seize profits. "I thought `just and reasonable' rates were a
requirement of the law, not just some guiding principle," he said.

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

National Desk; Section A
U.S. Proposes Changes in Electricity Marketing in California
By NEELA BANERJEE
?
11/02/2000
The New York Times
Page 21, Column 1
c. 2000 New York Times Company
Citing the ''seriously flawed'' nature of the California electricity market,
which was plagued with price spikes and brownouts this summer, the Federal
Energy Regulatory Commission proposed changes yesterday in the sale and
pricing of electricity intended to overhaul deregulation in the state.
The commission's review was set off by widespread outrage after consumers in
San Diego saw their electricity bills triple this summer.
Once viewed as a pioneer in developing an efficient electricity market,
California is now thought to embody the many problems that can arise from
deregulation. States that are taking a go-slow approach to deregulation are
sure to follow closely the changes proposed for California.
Commission and industry analysts warned that the proposed measures, which
would affect 85 percent to 90 percent of the California market, were but a
first step to undoing the complicated knot of factors that led to high
prices. They said the measures were not a guarantee that prices would be
lower next summer.
''Some people want, to use a psychobabble word, closure on all this,'' said
Robert Michaels, a deregulation expert and professor of economics at
California State University at Fullerton. ''But the California institutions
are so complex that no one measure by F.E.R.C. will resolve it. The process
will go on for a long time.''
The commission oversees the progress of deregulation across the country
although states determine the specific conditions. The commission will accept
commentary on the proposals and issue a binding order in December, a
spokeswoman said.
California electricity prices rocketed last summer largely because consumer
demand for power outstripped supply. As a result, the commission warned,
California officials will have to find ways to build more power plants and
transmission lines.
The commission's recommendations center on the sale of power through
institutions set up as part of California's deregulation process. Many
investor-owned utilities no longer generate power, but buy it on the
wholesale market. Currently, utilities can buy and sell power only through
the California Power Exchange, a state-run electricity marketplace. The
commission has proposed eliminating that requirement so utilities can shop
around for long-term electricity contracts, a move most analysts welcomed.
''This gives us more flexibility to obtain affordable power for customers,''
said Shawn Cooper, a spokesman for the PG&E Corporation, the major utility in
Northern California. ''Right now, we're limited on the energy product we can
buy.''
Turning to the exchange, Mr. Cooper said, ''is like going to a car lot and
being able to buy only one or two models.''
But experts said the other proposals might be easily thwarted by
power-generating companies seeking top dollar. The commission proposed, for
example, to lower the price cap for a megawatt hour to $150 from $250. Power
suppliers that bid over $150 would be paid their price but would be required
to explain the reasons for their bid. Such a system, some experts say, would
prove a sizable loophole.
James Bushnell, a research associate with the Energy Institute of the
University of California, said, ''I think a clever engineer at any power
company could come up with a whole bunch of reasons for whatever they want
their costs to be.''
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business; Financial Desk
The Cutting Edge U.S. Urges Major Fixes for State's Power Market Energy:
Federal panel says electricity crisis is product of flaws in deregulation,
but it stops short of ordering reductions in sky-high prices.
NANCY RIVERA BROOKS NANCY VOGEL; CHRIS KRAUL
?
11/02/2000
Los Angeles Times
Home Edition
Page C-1
Copyright 2000 / The Times Mirror Company
California's electricity crisis is the product of flaws in the deregulated
market and a long-term shortage of power in the state, federal regulators
said Wednesday, proposing sweeping changes to fix the $23-billion electricity
trade.
But the Federal Energy Regulatory Commission stopped short of ordering
retroactive reductions of the sky-high electricity prices paid since June,
saying it lacked the legal authority.
The commission, which found no evidence of individual companies driving up
electricity prices, left the door open for some sort of refund should it
uncover specific instances of such market abuses. That leaves undetermined
whether major utilities can pass on more than $5 billion in electricity costs
to consumers across the state.
The technical changes proposed to fix California's flawed market include
giving utilities freedom to buy power from sources other than the
state-mandated exchange and imposing loose price caps on power purchases.
Still, California faces years of high prices and threatened blackouts, the
commission said, unless legislators and regulators tackle problems beyond the
federal body's scope, particularly the faster building of power plants and
transmission lines.
"Ideally, some people would want us to round up the bad guys who manipulated
this market without restraint or conscience and order disgorgement of all
their ill-gotten gains. It's not as simple as that," Chairman James J.
Hoecker said at a special meeting of the four-member commission. "If
information that the market was or is being manipulated unlawfully comes to
us through complaint or as product of our own investigation--we will act on
that information, I guarantee you."
The commission's menu of proposed changes to the California market, which it
hopes to enact by the end of the year after public comment, drew scalding
criticism from consumer groups, tepid praise from utilities and power
generators, and a mixture of hot and cold responses from politicians.
Nonetheless, observers expect the proposals will be approved in their current
form.
Some lauded the commission's proposed order for what it didn't do, mainly
impose cost-based electric rates that would have represented a
"re-regulation" of the industry. Generators breathed a sigh of relief that
the commission--at least for the time being--did not judge the power
merchants as having wielded illegal "market power," and therefore subject to
refunds to the utilities and consumers they sold power to.
And even consumer advocates, angry as they are, were comforted by the
commission's finding that electricity rates at times this summer were "unjust
and unreasonable," legal language that could open the way for the California
Public Utilities Commission or the California Legislature to go after any
profits they consider excessive.
Gov. Gray Davis, during a news conference with U.S. Energy Secretary Bill
Richardson to unveil initiatives to improve electricity supply and
reliability, called the federal commission's proposal "a mixed blessing."
"They do recognize that we're operating in a dysfunctional market and they do
agree that rates are not just and reasonable," Davis said. "However, they did
not, as I encouraged, order rebates to the consumers and businesses in San
Diego who were literally gouged for the profiteering and market manipulation
San Diego had to suffer through."
Among the market changes proposed by the Federal Energy Regulatory
Commission:
* A temporary reworking for the next two years of the way prices are set for
electricity in the California Power Exchange, the primary market for
electricity. Currently, the highest bid for each hour sets the price for all
the bids during that hour. The commission would change that policy so that
bids higher than $150 a megawatt hour could not set the "market clearing
price" paid by all participants.
* Freeing the big utilities--Southern California Edison, Pacific Gas &
Electric and San Diego Gas & Electric--from the requirement that they
purchase most of their electricity from the Power Exchange. This would give
the utilities greater freedom to shop for the best deals on electricity.
* Requiring all market participants to schedule 95% of their transactions the
day before rather than--as happened repeatedly this summer--waiting until the
day the power is needed, buying at the last minute in an emergency market
operated by the California Independent System Operator. This nonprofit was
formed to schedule and transmit electricity, but found itself this summer in
the unexpected position of running a major market for electricity as
generators sought the best price for their electrons.
* Overhauling the boards of governors of the California Power Exchange and
the California Independent System Operator, which currently are composed of
"stakeholders" representing all parties to deregulation, including
generators, utilities and consumer advocates. Instead, the two nonprofit
corporations would have smaller, independent boards selected by the current
boards.
(Customers of the Los Angeles Department of Water and Power, which is not
participating in market deregulation and has escaped the state's power woes,
are not affected by these proposals.)
The commission based its proposals on a staff investigation that blamed high
electricity prices on a supply-demand imbalance and market design problems
that give electricity sellers the opportunity to drive up prices when
supplies are tight. But the commission found no evidence of specific attempts
by individual companies to drive up the price of electricity, partly because
there was not enough time to conduct such a thorough, formal investigation.
Curt Hebert Jr., the only Republican on the commission, offered the most
criticism of the proposed order.
"If it were up to me, today's order would be much, much different," Hebert
said. "However, on balance, it appears to be a step in the right direction."
Hebert said he could support the order only because it does not represent the
final order and may be changed after the three-week public comment period. He
said he would prefer that the order eliminate all price controls.
California's two biggest utilities--Southern California Edison and Pacific
Gas & Electric--commended the commission for its proposed fixes, calling them
"a sound beginning."
In particular, PG&E called the proposed reform of bidding "a creative attempt
to fix the market and moderate prices, while still allowing competition to
evolve."
Power players praised FERC 's decision to allow utilities to go outside the
PX to procure energy--a practice that a couple of years ago was deemed too
risky because it might give the big utilities the temptation and impunity to
self-deal: buying from their own affiliates.
Although utilities have had limited power to make long-term energy contracts
outside the PX, utilities have been reluctant to enter into them. That's
because state regulators reserve the right to review such deals and to force
companies and their shareholders to eat added costs if market rates decline
below the contracts.
Together, PG&E and Edison estimate that they have spent at least $5 billion
more on electricity this summer than they could pass on to customers who are
protected by a rate freeze imposed in 1996 as part of the deregulation law.
The Public Utilities Commission is weighing the utilities' requests to
eventually pass on those costs to customers.
But consumer groups were outraged by the lack of rebates to customers of San
Diego Gas & Electric, and, by extension, to the customers of SCE and PG&E,
who currently are protected by a rate freeze but could face sharply higher
bills if the utilities are allowed to pass along their uncollected
electricity costs.
"They are trying to give medicine for an incurable disease, and that's
electricity deregulation," said Doug Heller of the Foundation for Taxpayer
and Consumer Rights. " FERC has found that rates were excessive, yet they
failed to take action. That's like a judge that says we have all the evidence
in the world that this guy committed murder, but it's all inadmissible."
Mike Florio, a lawyer with the San Francisco-based consumer group called the
Utility Reform Network and a member of the Cal-ISO board, said the commission
took a step backward by nullifying Cal-ISO's recent decision to set a sliding
rate cap of as low as $100 per megawatt hour. The commission ordered that the
price cap in the Cal-ISO market remain at $250 a megawatt hour until the new
FERC pricing mechanism is finalized.
"I wasn't one of those that thought FERC was going to ride in on a white
horse and rescue us, but this appears to have made things worse," Florio
said.
San Diego County Supervisor Bill Horn said that county attorneys would review
the FERC order to assess the county's options for pursuing rebates.
"We're proceeding on our own," he said. On Tuesday, supervisors voted to
study creating a municipal utility district.

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


Hey gang--
I couldn't convince Rob to join us... boo hoo. Jeff Walker and I are
confirmed. We will be sharing a room but since many of the rooms/suites
are so large anyone else is more than welcome to join us. I will be
organizing the room today and will probably book a large one should one
of you want to join us. Here are the ones I am considering. Let me know
what you think.  The web site to view the rooms is
http://www.cleonegardensinn.com/ <http://www.cleonegardensinn.com/>
Madeleine

#1 Ocean View Suite (Non Smoking): with king bed, fireplace, living room
w/ queen hide-a-bed, kitchen, shower/ tub, wrap around deck, TV/ radio,
partial ocean view, private phone, 2-3 day Minimum with advanced
booking, with self-housekeeping, ($12.00 extra each bed/person). .
maximum: 4 persons. 160.00 No Breakfast

#2 Sand Dune View Suite (Non Smoking): with queen bed, living room w/
queen hide-a-bed, shower, private deck beside large pond, TV/ radio, 2-3
day minimum with advance booking, self-housekeeping, ($12.00 extra each
bed/ person), maximum: 4 persons. 94.00 No Breakfast

#3. Noyo Suite <noyo_suite.html>*(NON-SMOKING): large deluxe suite with
queen bed, fireplace, small kitchen, shower, TV/ radio, large private
deck with garden & forest view (separate bedroom with a twin and a
double bed, $12.00 each, extra bed/ person), maximum: 5 persons.

#4. Novarro Suite <novarro.html> (NON-SMOKING): large deluxe suite with
queen bed, fireplace, small kitchen, shower, TV/ radio, large private
deck with garden & forest view (separate bedroom with a twin and a
double bed, $12.00 each, extra bed/person), maximum: 5 persons.

#5. MacKerricher Room <

Madeleine Todd Executive Recruiting
1329 Taylor Street, Suite 114
San Francisco, CA 94108-1047
phone: 415-441-7010
fax: 415-441-7173
email: madeleine@madeleinetodd.com

The information contained in this transmission is privileged and
confidential information intended for the use of the individual or
entity named above. If the reader of this message is not the intended
recipient, you are hereby notified that any dissemination, distribution
or copying of this communication is strictly prohibited.

-----Original Message-----
From: Scatena, Pat [mailto:pat.scatena@intel.com]
Sent: Wednesday, July 11, 2001 9:35 AM
To: 'afinch@iasco.com'; Jeff_Walker@i2.com
Cc: 1gr8coach@home.com; cwfinch@flash.net; Jeff.Dasovich@enron.com;
'Jeff Walker (E-mail)'; 'Kari Ontko (E-mail)'; 'Lori Hom (E-mail)';
Madeleine Todd; 'Nora McGee (E-mail)'; pmurray@ccac-art.edu
Subject: RE: Mendocino

correction following further discussion with Amy: i have booked the blue
iris room (apologies to the Jeffs) and Amy has booked a separate room
for herself and Cal (i think the meadow view room).

-----Original Message-----
From: Amy Gustafson Finch [mailto:afinch@iasco.com]
Sent: Wednesday, July 11, 2001 7:49 AM
To: Jeff_Walker@i2.com; 'Scatena, Pat'
Cc: 1gr8coach@home.com; cwfinch@flash.net; Jeff.Dasovich@enron.com;
'Jeff Walker (E-mail)'; 'Kari Ontko (E-mail)'; 'Lori Hom (E-mail)';
'Madeleine Todd'; 'Nora McGee (E-mail)'; pmurray@ccac-art.edu
Subject: RE: Mendocino

Hello all,

I made a reservation at Cleone Gardens Inn, just across the street from
the ranch.  I reserved a room for Pat, Cal and myself, but was unsure
what other reservations to make for the rest of the group because some
of you are still tentative and I'm not sure who is bringing SOs/dates.

The inn has one room called the Blue Iris room with two double beds that
might work for Jeff W. and Jeff D. if going up single; most of their
other rooms have a queen or king bed (the Meadow View king room sounded
nice for a couple if we have any going up).  Both of those are still
available for the weekend we are planning to be there.  I think there
may be some cottages available also for multiple people, but I'm not
sure what the configurations of those are.  A full breakfast can be
ordered from some of the rooms for $14.00 extra.  They serve breakfast
at 8:00 a.m.  Pat, Cal and I have a suite with a small kitchen, so we
may also be able to host some minimal meals/snacks/drinks.

The phone number of Cleone Gardens is 1-800-400-2189.  Their website,
which has pictures and descriptions of their rooms, is
cleonegardensinn.com.  If the Cleone Gardens Inn does not have the room
configuration you want, Lari's website (horse-vacations.com) has links
to numerous other hotels and B&Bs.

Tally ho!

Amy

-----Original Message-----
From: Jeff_Walker@i2.com [mailto:Jeff_Walker@i2.com]
Sent: Sunday, July 08, 2001 7:10 PM
To: Scatena, Pat
Cc: 1gr8coach@home.com; afinch@iasco.com; cwfinch@flash.net;
Jeff.Dasovich@enron.com; Jeff Walker (E-mail); Kari Ontko (E-mail); Lori
Hom (E-mail); 'Madeleine Todd'; Nora McGee (E-mail);
pmurray@ccac-art.edu
Subject: RE: Mendocino

Hi All:

Madeleine was kind about me not keeping up with personal emails ....

I am putting the Mendocino dates on my calendar. I would like to ride
both days. I would also like to stay where everyone will be happiest ;)
Howard's Creek is great, but I agree with Pat, that we just won't have
the time to enjoy the place (or breakfast).

BTW - Are any non-riders coming??

Jeff.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Jeff Walker
Office: (650) 632-7648
i2 Technologies
Cell: (650) 868-7585
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


[IMAGE]
 	 	    Dear Jason,  I'm Washington Correspondent Peter Cook filling in for Jay Rickerts today while he's on vacation this week.  I pass the pen back to Jay on Monday, but I want everyone to know I've enjoyed writing the wrap and keeping you updated while he's been away.   We have lots going on in Washington next week, so I'm going to give you a brief summary of some of the events and hearings we hope to cover.    Tuesday:  House Energy and Mineral Resources Committee hearing on federal oil and gas royalties   House Science Subcommittee on Energy hearing on clean coal technology and oil and gas research and development Wednesday:  DOE Secretary Spencer Abraham appears before the House Subcommittee on Energy and Air Quality  Senate Governmental Affairs Committee hearing to explore the effects of deregulation on the cost of natural gas and electricity  Thursday:  House Government Reform Subcommittee on Energy Policy hearing on "Gasoline Supply: Another Energy Crisis?"  Also, President Bush travels to Europe to discuss the issue of global warming.  These are just a few items on our list.  We'll continue to keep you updated on our coverage from Washington next week.   And from our Houston bureau next week, we'll have something for all our history buffs.  Shell and BP Amoco have discovered a WWII German Submarine sunk off the coast of the Gulf of Mexico.  We'll bring you the story as well as photos of the sub next week.  Also next week, Houston Correspondent Kim Benestante is scheduled to bring us a story on Wal-Mart offering cheaper gasoline in Louisiana and Texas.  This move is pulling profits from some major gasoline producers.  We'll bring you these and other stories from the Houston bureau next week.    We've also got some great interviews from the Houston bureau next week.  Former President and CEO of Nuevo Energy Douglas Foshee is scheduled to join us.  He'll discuss his opinion of the most scarce resource in the oil and gas industry over the next few years: talented technical people.  Watch for Foshee in the 9:00 a.m. ET newscast on Tuesday.   Starting Monday, we'll bring you the first of many live reports from our new West Coast bureau.  ENL's Kym McNicholas will be based in Sacramento to bring us California news as it breaks.  Log on Monday for coverage from the West.   Keep in mind things are subject to change at a moment's notice.  Occasionally guests cancel or change time slots.  We'll continue to do our best to keep you updated on future interviews and events.     Keep it on energynewslive.com  for all your energy news.
 			[IMAGE]
	 	Peter Cook, EnergyNewsLive.com Washington Correspondent  View today's Energy Wrap  video: (Windows Media Player required) Broadband  (100k)   |  Dial-up  (56k)  Get  Windows Media Player   Experience all that Williams Energy  News Live has to offer!   If you are receiving this letter for the first time and wish to continue,  subscribe now    To stop receiving this letter,   unsubscribe now     If you are having trouble receiving this e-mail, please let us know  or  call (800) WILLIAMS (800-945-5426) weekdays, 7am-7pm CST.    Comments? Suggestions? Let us  know  or  call (800) WILLIAMS (800-945-5426) weekdays, 7am-7pm CST.    Copyright 2001 Williams Energy News Live, LLC. All  Rights Reserved.


from indiana jones when the chinese kid says "no time for love dr. jones"


Sandy

Attatched is a copy of the reading we selected for you to read.  Thanks for
taking part in our celebration!  If you have any questions you can reach me
at 713-853-5933 or Zooey at home 713-432-7163 or cell 713-516-8820.  As if
that is not enough numbers 6pm is the time the rehersal begins.  We are on a
very tight schedule so prompt attence is appreciated.  The location is the SE
corner of Kirby and Westheimer.  If you are coming from 59 you turn left on
Kirby (north) and go to Westheimer and turn right (east) and it is on your
right.  Also, the rehersal dinner is following the rehersal at Buca di Beppo
at around 7:30.  We hope you will be able to attend.


that was bbtu- i've resent with correction

-----Original Message-----
From: Kitchen, Louise
Sent: Tuesday, October 09, 2001 11:18 AM
To: Killen, Faith
Subject: RE: What is our
Importance: High

What are the units. I want per mmbtu
--------------------------
Sent from my BlackBerry Wireless Handheld


PENNSYLVANIA DEPARTMENT OF STATE, CORPORATE/LTD PARTNERSHIP RECORD

NAME: SKIPPING STONE INC.

TYPE: FOREIGN BUSINESS

STATUS: IN GOOD STANDING (ACTIVE)

DATE OF INCORPORATION/QUALIFICATION: 11/12/1997

MAILING ADDRESS: 28 GARRETT AVE
?????????????????ROSEMONT, PA 19010-0000

STATE: DELAWARE

REGISTERED OFFICE: 28 GARRETT AVE
???????????????????ROSEMONT, PA 19010-0000
? ? ? ? ? ? ? ? ? ?DELAWARE COUNTY

OFFICERS:

	??Name	Title

	PETER WEIGAND	CEO

	Effective 11/12/1997

NUMBER: 2784475

HISTORY:

			MICROFILM
DATE	TRANSACTION		ROLL? START/END

11/12/1997	CERTIFICATE OF AUTHORITY - BUSINESS	0009783	0144/0145

CALL LEXIS DOCUMENT SERVICES FOR ALL YOUR CORPORATE NEEDS. 800-634-9738 ?

Eric Gillaspie
713-345-7667
Enron Building 3886


Mr. Buttrey,

I'm writing on behalf of Jeff Skilling in response to your note below.  Jeff
would be delighted to join you for lunch on your visit to Houston.  In
looking at this schedule, he is currently available for lunch on the
following dates:

May 16, 19
May 24, 25

Please let us know which, if any, of these dates work best for you.

Regards,
Sherri Sera
Assistant to Jeff Skilling
713.853.5984
713.646.8381 (fax)

Mike Buttrey <Mike_Buttrey@mhbt.com> on 04/28/2000 04:03:43 PM
To: "'Jeff Skilling'" <JSkilli@Enron.com>
cc:

Subject: Houston visit

???????
Jeff, I need to be in Houston sometime the third or fourth week in May.?
Might there be a time when we can get together for lunch?

I will be in Berlin Germany next week but will be checking my messages.? Hope
to hear from you.

Regards,

Mike Buttrey


Please register Wincenty J. (Vince) Kaminski, Managing Director, Research
Enron Wholesale Services, to the subject conference to be held in Houston
on June 22, 2001.

If you need more information, please contact me at:

Shirley Crenshaw
Administrative Coordinator
Enron Research Group
713-853-5290
email:  Shirley.Crenshaw@enron.com


Sara,

My contact is
Fred Ritts at Brickfield, Bruchette, Ritts & Stone, PC
202.342.0800

Just in case you need to talk to someone directly.  I will be out for just a
little while, please call me on my cell if you need me immediately.
281.782.6397.

Many thanks,
Lucy


Eddy: Let's get together and go over the agenda before the meeting.  Thanks.
Mark

	Eddy Daniels@ENRON
	03/20/2001 05:18 PM

		 To: Johannes.Walzebuck@shell.com.br, James Derrick/Enron@EnronXGate, Mark E
Haedicke/HOU/ECT@ECT, Rebecca McDonald/Enron@EnronXGate, James A
Hughes/Enron@EnronXGate
		 cc: Federico Cerisoli/SA/Enron@Enron, Nancy Muchmore/NA/Enron@Enron, Denise
Almoina/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, pnazro@velaw.com
		 Subject: Notice of Meeting of Directors of TBS on March 28, 2001

Please find attached a notice of a board of directors meeting for Transborder
Gas Services Ltd. for next Weds., March 28, 2001.  The meeting will be held
immediately after presentations to the shareholders' representatives (Enron &
Shell ) in Cuiaba, Brazil and will start at 11:00 am local time (9am Houston
time).  There will be a telephone call-in number for board members who can
not attend in person which will circulate later this week.

Regards,

Eddy Daniels


I think there was a problem when I tried to send this before...so here it comes again.

---------------------- Forwarded by Susan M Scott/HOU/ECT on 04/26/2001 04:26 PM ---------------------------

Susan M Scott
04/26/2001 04:25 PM
To:	Parking & Transportation/Corp/Enron@ENRON
cc:	DeShonda Hamilton/Corp/Enron@ENRON
Subject:	Re: Enron Center Garage

Hi DeShonda,

I had emailed a week or two ago in regards to the new parking and haven't heard anything back yet.  Could you drop me a line at your earliest convenience and let me know if it will be possible for me to obtain a space.

Thanks,
Susan M. Scott
X31455

Parking & Transportation@ENRON
03/28/2001 04:07 PM

Subject:	Enron Center Garage

The Enron Center garage will be opening very soon.

Employees who work for business units that are scheduled to move to the new building and currently park in the Allen Center or Met garages are being offered a parking space in the new Enron Center garage.

This is the only offer you will receive during the initial migration to the new garage. Spaces will be filled on a first come first served basis. The cost for the new garage will be the same as Allen Center garage which is currently $165.00 per month, less the company subsidy, leaving a monthly employee cost of $94.00.

If you choose not to accept this offer at this time, you may add your name to the Enron Center garage waiting list at a later day and offers will be made as spaces become available.

The Saturn Ring  that connects the garage and both buildings will not be opened until summer 2001. All initial parkers will have to use the street level entrance to Enron Center North until Saturn Ring access is available. Garage stairways next to the elevator lobbies at each floor may be used as an exit in the event of elevator trouble.

If you are interested in accepting this offer, please reply via email to Parking and Transportation as soon as you reach a decision. Following your email, arrangements will be made for you to turn in your old parking card and receive a parking transponder along with a new information packet for the new garage.

The Parking and Transportation desk may be reached via email at Parking and Transportation/Corp/Enron or 713-853-7060  with any questions.

(You must enter & exit on Clay St. the first two weeks, also pedestrians, will have to use the garage stairwell located on the corner of Bell & Smith.)

<Embedded StdOleLink>


Thank you, Joe. If they include combinatorial bids then it would be a much more complicated system. I think everything comes down to liquidity. If they have enough volume, then it will attract even more bidders because the bidders do not have to think too much about the "fair" price because they will always get the lowest successful price anyway. If there is small volume, then it will become harder for the bidders to decide on optimal bidding strategy. Personally I think this system will work because there are many speculators out there who want to play this kind of games.
 :-)
-Chonawee

 -----Original Message-----
From: 	Hrgovcic, Joseph
Sent:	Saturday, November 03, 2001 4:33 PM
To:	Supatgiat, Chonawee; Bharati, Rakesh; Shanbhogue, Vasant; Kaminski, Vince J
Subject:	RE: longitude

Chonawee,

	Good work. I'd like to add a few observations. Regarding your comment about not being able to buy straddles:  Longitude informed us that an upcoming implementation (that is actually in place now but has not been made available so as not to complicate the initial auctions). The new implementation allows packages of digital spreads to be bought and sold as one instrument, resulting in terraced payout functions that approximate true call and put (and presumably collar and straddle) payouts. Even so, the structures will remain largely digital in nature; therefore, they will be rather dirty hedges for traditional calls and puts regardless of how one packages them

	As far as getting a bad price, the auctions here are indeed Dutch auctions, but I believe that the limit orders address this issue -- they assure a given payout ratio. Certainly there is no guarantee that any of the amount laid down by a participant will be placed, which is another problem for hedgers. (Then again, a traditional hedger who asks too much for his offsetting transaction is also unlikely to meet with success.)

	Lastly, with regard to the last paragraph on publishing tentative prices, it is left up to to the discretion of market maker to decide how much of the auction's internal operations (including tentative prices) is posted, but remember that the auction is intended to last only a few hours at a time, yet again constraining the auction's suitability for hedging (admittedly, there would likely be several auctions throughout the life-cycle of the underlying index).

Joe

 -----Original Message-----
From: 	Supatgiat, Chonawee
Sent:	Friday, November 02, 2001 6:37 PM
To:	Bharati, Rakesh; Shanbhogue, Vasant; Kaminski, Vince J; Hrgovcic, Joseph
Subject:	longitude

I will be back on Wednesday night. You guys can reach me at my cell phone 713-320-5473.

Attached please find a paper I wrote earlier (before we discuss with them this afternoon) about the longitude.
(Vince, I already gave you a hardcopy of it earlier.. in case you wants a softcopy)

As Vasant pointed out, it looks like they already did the real-time tentative prices posting in their system. So now hedgers can participate in the auctions. I still feel that the system will attract speculators more.

Thanks!
-chonawee
 << File: Analysis of Longitude.doc >>


Thanks, Michelle.  This will help, I think.

Rosalee

"Michelle Michot Foss" <mmfoss@uh.edu> on 10/25/2000 09:27:40 AM
Please respond to <mmfoss@uh.edu>
To: <Kenneth.Lay@enron.com>
cc: "\"Rob Bradley\" <Rob Bradley" <rbradle@enron.com>
Subject: Invitation for IAEE Keynote

Hi Rosalee-- I just wanted to thank you so much for your extra help on our
inquiry to Ken.  We understand completely that the April 25 slot following
his return from vacation is not the most ideal arrangement.  I think it's
always easiest for someone like him if he knows that a speech given recently
can easily serve as the basis for a new request.  I wanted to remind you of
my previous suggestion that his keynote presentation in Montreal last May to
the World Forum on Energy Regulation would accomplish most of that, and we
would work with Rob and others to minimize any effort required to add new
content.  Hopefully, this will help with the decision this week.  As I
mentioned the other day, Ken is really the most authoritative figure when it
comes to the idea that economic concepts can be used to build energy markets
and business enterprises that lead to better societies!  Talk soon, and
don't hesitate to ever ask for a "quid pro quo" from us.

Michelle Michot Foss, Ph.D.
Director, Energy Institute
Bauer College of Business
University of Houston
Houston, TX  77204-6283
Tel. 713-743-4634
Fax  713-743-4881
www.uh.edu/energyinstitute


Rusty,

I will get with Kathleen and we will prepare on a form.  However, you will
need to provide one of us with the details on a case-by-case basis, so that
we (Kathleen) can generate the CA's and track them in the legal department
database.

If we have the following information, a CA can typically be generated on a
same day basis:

name, address of counterparty, including name of contact person
type of deal contemplated
what type of information is being provided
whether both parties are providing information
whether exclusivity/non-circumvention provisions are desired

Thanks,

Kay

Rusty Stevens
02/14/2001 03:06 PM
To: Kathleen Carnahan/NA/Enron@Enron, Kay Mann/Corp/Enron@Enron
cc: Fred Mitro/HOU/ECT@ECT, Ben Jacoby/HOU/ECT@ECT, Scott Healy/SF/ECT@ECT

Subject: Confidentiality Agreements

Kathleen / Kay:

As you know, Fred and I are continuing to engage various parties in an
attempt to sell the Illinois sites.  Scott has asked that we use a CA that
doesn't preclude States where we have sites he is trying to sell as we are
collaborating with him on this effort.  He also wants a document in place
that can cover the sale of equipment.

In talking to Fred, it appears that the Dynegy CA is the latest and greatest
document that works for this task, however the PSEG deal may also work.
Please forward me an electronic form that you feel is most appropriate - with
blanks where all counterparty names are shown - so I can forward them to
additional parties (such as FPL, Duke, Tenaska, Unicom, etc.).

I would like to get this out to a couple of these parties tomorrow if
possible since we are already talking to other parties and want to maximize
price and likelihood of closure.


Thank you for stopping by the Boardroom yesterday to congratulate me on my
college graduation.  It is due to Enron that I have been able to achieve this
lifelong goal.  I have also received unfailing encouragement, support, and
flexibility from Cliff during this time.  Had it not been for Cliff, I would
not have been nearly so successful.

My deepest thanks to the three of you.


-----Original Message-----
From: Hess, Theresa
Sent: Wednesday, October 17, 2001 10:26 AM
To: Corman, Shelley; Holmes, Bradley
Subject: FW: Press Release -- NERC Expands Role

FYI -- NERC is expanding their role to include development of wholesale electric business practice standards, in addition to reliability standards.  It looks like they're making it clear that they don't want an EISB developing wholesale electric standards.  They plan to be the single organization for developing these standards.  They've even added balanced voting for their committees.  I don't know the details, but they're using pieces of GISB's process that they know work and that people like.

Some GISB representatives have been making it look as if everyone in the energy industry is on board with EISB.  Clearly, they're not.

I'll let you know if I hear anything else.

Theresa

October 16, 2001

NERC Expands Role

At a watershed meeting today in Vancouver, BC, the North American Electric
Reliability Council's (NERC) Board of Trustees took bold steps to expand
its
role for developing standards for the wholesale electric industry in North
America.

Michehl R. Gent, NERC President and CEO, said, "On the strength of strong
recommendations from the NERC Stakeholders Committee, the Board pledged to
take all necessary steps to become the single organization in North America
to develop both reliability standards and wholesale electric business
practice standards and to file such standards with the Federal Energy
Regulatory Commission (FERC) and appropriate government agencies in
Canada."

"NERC is committed," says Gent, "to establishing a fair, open, balanced,
and
inclusive process for developing all standards."  NERC's Board approved a
new process for developing standards and agreed to a new composition and
weighted sector voting model for its standing committees.

NERC has long been recognized and respected as the industry's developer of
standards for the reliable planning and operation of interconnected
transmission systems throughout North America.  These standards have been
the basis for the reliable operation of the bulk electric systems for over
30 years.

Richard Drouin, Chairman of NERC, stated, "The Board of Trustees recognizes
the urgent need for a single organization to develop both reliability
standards and wholesale electric business practice standards that are well
coordinated.  Such standards," Drouin added, "are vital to support the
evolution of competitive electricity markets, the formation of large
regional transmission organizations, and continued reliability and security
of interconnected transmission systems."

Today's actions are a major step toward formalizing a role that NERC has
filled for some time.  NERC spearheaded the OASIS "What" and "How" Working
Groups that developed the Standards and Communications Protocols followed
by
all transmission providers; formed a Market Interface Committee to address
the impact of reliability standards on markets and the impact of market
practices on reliability; and facilitates the Electronic Scheduling
Collaborative, which recently filed a report with FERC on its efforts to
develop common business practice standards for electronic scheduling (OASIS
Phase II).

To accomplish its reinvention, NERC will actively solicit support from
Canadian and U.S. government entities, and facilitate ? jointly with
interested trade associations; federal, state, and provincial regulators;
and other stakeholder organizations ? an open and inclusive process to
achieve consensus on the details of its new role.

In parallel actions, the Board also took steps to ensure the independence
of
actions by its 21 Security Coordinators from any wholesale or retail
merchant functions, and agreed to revamp the composition and voting
structure of its standing committees.

For more information on NERC or its transformation into NAERO, visit NERC's
web site (http://www.nerc.com/). The web site also includes information on
the electric industry's electricity supply and delivery programs and
activities.

*********************

NERC is a not-for-profit company formed as a result of the Northeast
blackout in 1965 to promote the reliability of the bulk electric systems
that serve North America. It works with all segments of the electric
industry as well as customers to "keep the lights on" by developing and
encouraging compliance with rules for the reliable operation of these
systems. NERC comprises ten Regional Reliability Councils that account for
virtually all the electricity supplied in the United States, Canada, and a
portion of Baja California Norte, Mexico.


What up, my peoples?!?

After Thursday, Jan. 04, I will no longer be able to receive email at
this address. The Chronicle has opted to cancel my contract, so I will
not be working fulltime for them anymore. I will continue to work here
parttime in graphics, at night, however. Please forward all new email to
me at herrmannal@hotmail.com  starting immediately. Please note this is
a new address, not to be confused with the bad spamful
al_herrmann@hotmail.com (bad! don't send mail there!)  Thank you for
your attention to this matter.

On a much happier note, on Monday Jan. 1st I got a phone call from an
adoption registry I had signed up with on a lark about a month ago. They
found my biological mother, who had been looking for me, and gave me her
phone no., name, etc. We've left phone messages for each other, and I
expect to talk w/ her maybe tonight. Pretty freaky, huh? I am in shock.

xox,
Al Herrmann, Extraordinaire


Hi!

          Count me in!

                            Thanks

 -----Original Message-----
From: 	Bates, Kimberly
Sent:	Monday, November 05, 2001 12:48 PM
To:	Ames, Chuck; Brawner, Sandra F.; Germany, Chris; Hodge, John; Keavey, Peter F.; Mckay, Brad; Mckay, Jonathan; Neal, Scott; Pereira, Susan W.; Pimenov, Vladi; Ring, Andrea; Savvas, Leonidas; Townsend, Judy; Versen, Victoria; Barbe, Robin; Concannon, Ruth; Goodell, Scott; Jones, David; Kaiser, Jared; Loving, Scott; Muhl, Gil; Smith, Maureen; Smith, Shauywn; Taylor, Craig; Willis, Jim; Zivley, Jill T.; Culotta, Lindsay; Frihart, Bryant; Giron, Darron C.; Mims, Patrice L.; Murrell, Russell E; Pollan, Sylvia S.; Tucker, Patrick
Subject:	FW: Flu Shots

 -----Original Message-----
From: 	Rangel, Ina
Sent:	Monday, November 05, 2001 12:35 PM
To:	Villarreal, Alexandra; Hogan, Irena D.; Bates, Kimberly; Presas, Jessica; Vuittonet, Laura; Young, Becky; Moore, Kevin G.; Rybarski, Amanda; Salinas, Michael
Subject:	Flu Shots

I have scheduled the Health Center to come and administer flu shots to our floor on Wednesday.  I need to have an approximate number of how many vaccines we will need.  Please ask within your groups today and see who will be interested and let me know.

Thank You,
Ina Rangel
Administrative Coordinator
Enron North America
713-853-7257 Voice
713-646-3604 Fax


talk to me later

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


This schedule is correct.


Start Date: 1/10/02; HourAhead hour: 14;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002011014.txt


----- Forwarded by Tana Jones/HOU/ECT on 12/19/2000 05:17 PM -----

	Bradley Diebner
	12/19/2000 05:13 PM

		 To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Debbie
R Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT,
Cynthia Clark/Corp/Enron@ENRON, Mary G Gosnell/HOU/ECT@ECT, Enron Europe
Global Contracts and Facilities, Enron Europe Global CounterParty, Stephanie
Sever/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Stacey
Richardson/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON,
Claudia Clark/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Lisa
Lees/HOU/ECT@ECT, Juana Fayett/Corp/Enron@Enron, Jana Morse/Corp/Enron@Enron,
Trang Le/HOU/ECT@ECT, Paul Maley/LON/ECT@ECT, Sonya Clarke/LON/ECT@ECT, Lee
Munden/LON/ECT@ECT, Tim Davies/LON/ECT@ECT, Karen O'Day/NA/Enron@Enron, Tanya
Rohauer/HOU/ECT@ECT
		 cc:
		 Subject: EOL Credit Responses 12/19/00


Hi gang.  I will be out of the office quite a bit over the next 4 weeks.
Please make sure you copy Scott and Molly on all emails and send all faxes to
Scott Goodell, just to make sure we don't miss anything.

Thanks


Per discussion with Ted Murphy and Rick Buy, the following policy limit
changes are anticipated.  Note:  these are subject to change given market
volatility.

EES - $2MM Discretionary VaR expiring on 12/22/00  ------------------------>
EXTENDED THROUGH 1/5/01

Aggregate VaR Limit of $140MM - $40MM expiring on 12/22/00 ---------->
EXPIRES AFTER 12/22/00 - reduced to permanent Aggregate VaR Limit of $100MM

NA Gas - $35MM Discretionary VaR expiring on 12/22/00 ------------------>
EXPIRES AFTER 12/22/00 (with reduction in Aggregate VaR Limit to $100MM)

UK Power - $5MM Discretionary VaR expiring on 12/22/00 ---------------->
EXPIRES AFTER 12/22/00 (with reduction in Aggregate VaR Limit to $100MM)

NA Gas - $15MM Discretionary VaR expiring on 12/22/00 ----------------->
EXTEND $10MM THROUGH 1/5/01

       -----------------> REALLOCATE $5MM to UK Power THROUGH 1/5/01.

Therefore, the following VaR limits are/will be in place:

   now - 12/22/00  12/23/00 - 1/5/01 1/6/01
EES    $7MM   $7MM  $5MM

NA Gas    $110MM  $70MM  $60MM

UK Power   $20.3MM  $20.3MM $15.3MM

Aggregate VaR Limit  $140MM  $100MM $83MM

Vlady/Frank - Ted told Lavorato the NA Gas information on Friday.

Vlady/Minal - nothing to my knowledge has been communicated to EES yet.  You
can check with Ted to see if he did already.

Oliver, please communicate the anticipated limit changes for UK Power to the
commercial and risk management/energy ops people who need to know.  If an
extension is needed in the Discretionary VaR, at this point an analysis and
presentation will be required to justify the extension to get Rick Buy and
Ted Murphy to approve.

Feel free to call me with any questions.  I'm out on vacation this week, but
can be reached at home or on my cell phone.

Happy Holidays,
Cassandra.
home  936 321 2185
cell 713 858 2618


the only update to the attached is at the bottom where:

the scheduled vols are at the Index price, and anything greater than the
scheduled vols are at GDA.   Thus, any vols more than expected are @ GDA.

joan

---------------------- Forwarded by Joan Quick/HOU/ECT on 12/20/2000 06:07 PM
---------------------------

Jesus Melendrez@ENRON
12/20/2000 11:31 AM
To: Teresa G Bushman/HOU/ECT@ECT, Dan J Hyvl/HOU/ECT@ECT
cc: Joan Quick/HOU/ECT@ECT, Brian Otis/NA/Enron@Enron@ECT, Tim
Proffitt/HOU/ECT@ECT
Subject: Re: Physical contract diagram

Dan,

The attached document incorporates Joan's and Teresa's comments.  Please
ensure that the ENFOIL contract reflects the commercial points in the
diagram.  If you have any  question please ask, Joan, Teresa or me.  Thx,
Jesus

Teresa G Bushman@ECT
12/20/2000 10:56 AM
To: Jesus Melendrez/Corp/Enron@Enron, Joan Quick/HOU/ECT@ECT, Brian
Otis/NA/Enron@Enron, Tim Proffitt/HOU/ECT@ECT
cc:

Subject: Physical contract diagram

This is revised to I think clarify a bit.

Teresa G. Bushman
Enron North America Corp.
1400 Smith Street, EB 3835A
Houston, TX  77002
(713) 853-7895
fax (713) 646-3393
teresa.g.bushman@enron.com


Please join John Lavorato for a meeting regarding Gas Traders in ECS 06980 (the large conference room) tomorrow, January 29 at 10:00 am.

Let me know if you have questions.

Kim
x30681


Hey Cooper,
What a great idea! Eze sounds much better than Emily.  I hope it's not to late to change my business cards.  "Eze the auditor" has a nice ring to it.
Sounds like moving was a good time.  The worst part about moving is having to deal with the stuff still in boxes that you haven't unpacked from your previous move.  Most people throw it away,  but not me.  I, for some reason,  feel like I might need it someday,  yet I have no idea what I have in these mystery boxes.  I'm sure your movers loved the obstacle course to get to your place.  They probably thought it was some kind of joke.  Thanks for the moving stories,  they were entertaining.  I have a visual of your building manager...pure comedy!  So when are you guys having the big house warming/  hot tub party?  It would be a good chance to cash in on some more scooby doo paraphenelia and house warming gifts.  Speaking of Scooby doo,  I'm sure Jai is loving the scooby phone.  I can see him not answering it until after a couple rings just so he can get the whole show.
How is the whole work out regime coming along??  It sounds like you have a balance in your life.  Work is going well,  because you get to trade again, and your working out.  How does it feel?  I am all about balance in life.  Although it might not seem like it from the little free time I have,  I have a balance. I'm going for runs at all hours of the late night/ early morning....just to keep things intersting!
I'm going to look into wine fest,  and I'll let you know.  Jill and I are trying to get some people together to paint pottery in the evening next week.  We thought it would be a good alternative to going for drinks.  That way we can grab coffee (preferably, from Starbucks) and chill while we creat masterpieces. Anyone who wants to come is welcome.  Doesn't that sound like fun?  I'm already looking foward to it!  I was thinking Tuesday?  You and Jai could make something for your new place!
I leave you with that.....and before I forget,  guess who's buying baby blue pants from banana this week?  We'll be super fly cool cats!!!
eze
PS - where's my clip art you promised??  Jill isn't at work this week,  so I'm not getting any interesting e-mails from her.
-----Original Message-----
From: Cooper.Richey@enron.com [mailto:Cooper.Richey@enron.com ]
Sent: Tuesday, February 05, 2002 8:47 AM
To: Purtzki, Emily (CA - Calgary)
Subject: RE:
eze:
I put in a call to the deloitte systems admin to have your email name
changed to "Purtzki, Eze".  I hope you don't mind.
I'm tired from moving.  Enron's moved me in the past and I'm used to just
pointing and saying "that will go over there", etc.  and i spent all sunday
night packing up my shit.  ugh.  most of it has been moved which is good.
i don't think you've ever seen my loft, but to get to it, you have to take
the elevator up one building and then walk across the roof of another
building (picture gravel with flagstones that are spaced for janice to walk
across) and then into the floor of my building.  once the movers saw this,
I think they almost quit!  it was bad, but they did a great job.  I told
one of them, "the building i'm moving into will be a breeze compared to
this one" and he laughed and said "of course, you have the worst apartment
i've ever moved".  poor guy.  that's the most entertaining tidbit i could
come up with.
you should meet the building manager in our new building.  he's a freak,
but in a professional way.  he's already yelled at jai and i.  he sounds
russian and says in a thick accent "if you vant to leeve here, you haf to
obey da rrrulesss".  i hope you read that with a russian accent in your
head.  he has video cameras set up that feed into his kitchen!  his wife is
a piece of work as well.
count me in for the wine fest.  if you pick up some tix, grab me one, or
let me know where the website is, etc.
i can't believe you've moved on from tubulars.  while tubulars does seem
like the next big thing, oil and gas seems like a promising area to study.
     - c -
**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you.
**********************************************************************


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Please be advised that the following network shares have been moved to a new
server:

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To connect to the new share locations, double-click on network neighborhood
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I apologize for the late notice.  I was not aware that these shares were
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--D


I don't remember him but it is my understanding nobody has been heard from that worked in the Carr office in the wtc.

 -----Original Message-----
From: 	Wesner-Soong, Sarah
Sent:	Thursday, September 13, 2001 5:02 PM
To:	Arnold, John
Subject:	Carr futures

Do you remember Jim Paul from Carr?  He kept calling me about setting up a margin line for you to trade on and eventually we decided that it was not a good idea for Enron.  He visited me in Houston with a large team of people on the subject.  I called Credit Agricole (owner of Carr) in Houston and sadly it is feared that he did not make it out from the World Trade Center.


Please find attached the Global Markets Monitor for the week ending 19 October 2001.

Thank you,
Maureen Raymond-Castaneda
and Gwyn Koepke


Its my turn, sorry I havent jumped in til now, computer problems.

At a EPSA sponsored meeting on Aug 9, the GISB Chair and Rae McQuade sat down and we went through what it takes to get EISB rolling and how they would tackle the tough issues at NERC.

I beleive the EPSA folks in the room, Mirant, Dynegy, Ontario Power Gen, Enron, Exelon, Calpine  and ELCON all felt that there shouls be one organization setting standards because of the inherent risks of assuming reliability and commercial issues can be sleanly separated.  We came away from the meeting with a comfort level that the GISB process will provide the right mechanism to resolve this age old debate - I don't care what kind of standard you call it - if you write it - it must be put through the GISB/EISB wringer.  GISB recommended that perhaps what we know as NERC today could be given a segment in the energy quadrant.

Also to respond to Sarah's note about support for an SRO - no entity in the room supported that FERC give deference to ANY standards organization - not NERC, NAERO, GISB or RTOs.  So I think we need to hold tight to this issue and we will be able to rally support for it.

I will speak at the GISB conference next Wed, Aug 15 at DOE.  I am working with Mark Bennett and other EPSA folks on key principles of what EPSA wants from the EISB Strawman.

I have attached notes I put together that will evolve into the statements I will make on behalf of EPSA.

Please proviede me your thoughts.

Also - I agree with Dick, today, NERC is 12.5 million dollars annually, and mostly utility dollars.  If we are going to push for a EISB, we have to provide some carrot for these utilities to agree to let EISB do this.  NERC (and their supporters) will fall on their sword on funding and the reult will be we have 2 organizations setting standards if NERC cannot agree to become a part of the EISB process.

And one more thing, I don't know how much commitment Jeff Skilling feels he has to the Independent Baord members, many of which he helped get seated.  But pushing for EISB and perhaps wrapping NERC into it as the reliability piece (GISB's suggestion) - may render the Independents obsolete.  I don't know if are wedded to them.

 -----Original Message-----
From: 	Ingersoll, Richard
Sent:	Wednesday, August 08, 2001 8:47 PM
To:	Shapiro, Richard
Cc:	Rodriquez, Andy; Yeung, Charles; Nicolay, Christi L.; Perrino, Dave; Steffes, James D.; Shelk, John; Novosel, Sarah; Walton, Steve; Scott, Susan
Subject:	RE: FTC / NERC - Comment of the Staff of the Bureau of Economics and of Policy Planning of the Federal Trade Commission.

When all is said and done money rules and this means that the source of the funds to run the RTO's must come from an independent source if we are to have independent RTO's.  Perhaps directly from the rate payers or as a last resort federal funding.  If the feds fund they will rule the electric business like they do the schools and highways by using  threats to with hold dollars as a method of geting their proposals accepted.  Kind of dammed if we do and dammed if we don't.   If we don't sole the funding we will not resolve the other issues to our satisfaction.

	Richard Shapiro/ENRON@enronXgate 08/07/2001 06:53 PM 	   To: Steve Walton/ENRON@enronXgate, Dave Perrino/ENRON@enronXgate, Charles Yeung/ENRON@enronXgate, James D Steffes/ENRON@enronXgate  cc: John Shelk/NA/Enron@Enron, Andy Rodriquez/ENRON@enronXgate, Richard Ingersoll/HOU/ECT@ECT, Sarah Novosel/Corp/Enron@ENRON, Christi L Nicolay/ENRON@enronXgate, Susan Scott/ENRON@enronXgate  Subject: RE: FTC / NERC - Comment of the Staff of the Bureau of Economics and of Policy Planning of the Federal Trade Commission.

I agree with Steve although I've articulated a different point of view at times in the recent past. The CAISO experience is the most compelling argument of all. Let's make sure this is our position...but, if there are still dissenting points of view, we should hear them out....But,We do need to resolve this quickly. A final thought: this perspective puts us in between the NERC and PJM views..perhaps in an advantageous position to broker a legislative compromise.

-----Original Message-----
From:	Walton, Steve
Sent:	Tue 8/7/2001 7:40 PM
To:	Perrino, Dave; Yeung, Charles; Shapiro, Richard; Steffes, James D.
Cc:	Shelk, John; Rodriquez, Andy; Ingersoll, Richard; Novosel, Sarah; Nicolay, Christi L.; Scott, Susan
Subject:	RE: FTC / NERC - Comment of the Staff of the Bureau of Economics and of Policy Planning of the Federal Trade Commission.

After reading the FTC document, I am concerned that we are loosing sight of the fact that the RTO is first and foremost a provider of transmission service.  It will decide who uses the system, how it will be used, what schedules will be accepted, etc.  Do we really want it to set the standards by its performance is to be judged by others?  There are two tendencies to guard against.  (1)  Most of these organizations are going to be not-for-profit ISOs in form.  There may be a tendency to use very stringent rules to minimize outage risk and criticism of the RTO's management.  This could require the construction of facilities when they are not completly necessary.  (2) The opposite possiblity exists, namely, that they will adjust rules to cover their own mistakes.  I think the former problem is the most likely.

If the RTOs take over the NERC role as suggested, then the reliability rules would have to become part of the FERC tariff.  In order to judge the validity of the "reliability provisions" of the tariffs the FERC will be required to develop expertise it does not have.  In practice NERC doesn't have the expertise either.  It really resides in the members of the committees and is thus derived from the industry.  By having a separate Standards Setting Organization, the rules can still be established using the expertise of the industry.  The SSO would propose rules which FERC would accept subject to complaint.  The SSO's governance has to be fair, but I am not personally concerned about it being indepenent as long as FERC has oversight. It is the service provider (the RTO) that needs to be independent.  The standards in most industries are set in this way.  The power of the state to enforce the rules come from commissions of various types.  For instance, the National Electric Code is developed by the industry, but its enforcement is accomplished by adopting it into building codes, state liscensing requirements, etc.  In the same way, the SSO can develop the reliability rules which are incorporated in FERC's requirement imposed on the RTO.  The RTO's tariff would incorporate them by reference.  If the RTOs performance violates the rules or if a generator doesn't hold up its requirements, then ADR/FERC action can be taken to enforce.

My reason for this long message is to draw attention to the fact that the major function of the RTO is provision of transmission service.  It should not see itself as a regulator.  The case of the CAISO is instructive, since they think they are above compliance with rules since the believe they are the guardians of the public interest.  When the service provider thinks it regulates to comes to believe it has a right to decide who "should" have transmission service rather than get on with providing it.

Steve

	 -----Original Message-----
	From: 	Perrino, Dave
	Sent:	Tuesday, August 07, 2001 6:16 PM
	To:	Yeung, Charles; Shapiro, Richard; Steffes, James D.
	Cc:	Shelk, John; Rodriquez, Andy; Ingersoll, Richard; Novosel, Sarah; Nicolay, Christi L.; Scott, Susan; Walton, Steve
	Subject:	FTC / NERC - Comment of the Staff of the Bureau of Economics and of Policy Planning of the Federal Trade Commission.

Charles,

	Attached to this message is the results of a study completed by the FTC at DOE's request relating to NERC and open access, dated Jan 4, 2001.  I believe this document is significant and should be considered in our ongoing quest for a truly independent "standards" organization.  I would point you to page 10, the last sentence which states, "To the extent that RTOs are implemented in all areas of the country and have large geographic scope (or that FERC causes RTOs to coordinate their policies and rates that affect reliability within each of the three transmission Interconnects), the need for a separate reliability organization with mandatory rules may be greatly  educed or eliminated.",  Interesting.....

	Kind Regards,

	Dave

	 << File: FTC document.pdf >>

		 -----Original Message-----
		From: 	Yeung, Charles
		Sent:	Tuesday, August 07, 2001 2:57 PM
		To:	Shapiro, Richard; Steffes, James D.
		Cc:	Shelk, John; Rodriquez, Andy; Ingersoll, Richard; Perrino, Dave; Novosel, Sarah; Nicolay, Christi L.; Scott, Susan; Walton, Steve
		Subject:	Update - NERC Version of Legislation

		Rick

		The following discussion is to bring you up to date on the latest NERC activities on reliability legislation that was a subject on the weekly ENRON-NERC team conference call.

		John Shelk explained that NERC has significantly reduced the length of its proposed "Title on Reliability" so as to look more like the PJM approach.  Fundamentally, there are still major differences.  NERC continues to push for the embodiment of deference by FERC to the "SRO" in the legislation.

		Given the conference call last week with John Q Anderson, Dave Cook and Jeff Skilling, we were concerned how the upcoming meeting on Aug 9 by NERC stakeholders to "finalize" the NERC version would impact Jeff's request to speak with the Independent Board members before accepting any form of deference to NERC to become the SRO (or the term we prefer Standards Setting Organization - SSO).

		The meeting on the 9th should not interfere with Jeff's ability to present issues to the Board.  We don't think Jeff needs to contact John Q Anderson or any NERC members about the Aug 9 meeting.  However, for the discussions with NERC, John Shelk plans to "stay the line" on the Enron position of keeping authority to defer to any SSO with FERC and to keep any language that defers to the SSO out of the legislation.

		Jeff should still be able to argue for key Board action items, and if Enron is appeased, deference to NERC could still be given - but not through legislation, rather through FERC "comfort" that the SSO is doing a good job.  By knowing that FERC can "pull the plug" on the SSO if it is not satisfied, this will provide the correct incentive for the SSO to ensure that no industry segment dominates the standards setting process.

		I am completing a draft of issues that we want the Independents to resolve/address for Jeff Skilling to take to the Board.
		Additionally, Andy Rodriquez and I will develop a summary of examples of why NERC, in its current form, is not able to develop consensus rules that all its members are willing to comply with.  These examples should be powerful arguments for John Shelk to leverage in arguments for FERC authority in the legislation.

		We also discussed the need to shop our reliability legislation principles with Pat Wood and perhaps DOE.

		Charles Yeung
		713-853-0348


Fantastic!  I am happy that it ultimately worked out.  Welcome aboard.

Tom

 -----Original Message-----
From: 	Kaniss, Jason
Sent:	Monday, May 21, 2001 10:49 AM
To:	Martin, Thomas A.
Subject:	I made it!

Mr. Martin,

As you can see from the e-mail address, I am now an Enron employee.  After we had last spoke, in November, I was contacted by the Analyst program and I asked them to keep my name in the database, just in case an opportunity were to arrive.  In April I got a call out of the blue asking if I was still interested.  I did have to think about the decision a little bit, but I figure that the opportunities for me here greatly out numbered those at Coral.  I accepted and as of April, 30, I am here in the East Power Fundamentals group on the 31st floor.

I just wanted to give you an update, and I thank you again for helping me get into the Analyst program!

Sincerely,

Jason Kaniss


I am not sure if I will be able to be there the entire time.  I have an all afternoon meeting with Stan tomorrow that I will be preparing for.


Hi guys,

Just wanted to check to see if there is a "go by" affiliate EPC contract,
destined to be 97 10 compliant?  I'm ready to start working on it from ENA's
standpoint.

Thanks,

Kay


Notice No. 01-405
November 29, 2001

To:	All Exchange Members / Member Firms
	All Exchange Clearing Members

From:	J. Robert Collins, Jr., President

Re:	Exchange Extends EFS Window for Natural Gas

The Exchange will extend the Exchange of Futures for Swaps window for its
Natural Gas Futures contracts until 6:00 P.M., for today's trading session.

Please contact Thomas LaSala at (212) 299-2897 with any questions.


Did you get caught sneaking in late?  I didn't.  I don't think anyone knew I
was gone.

Gabriel Monroy
12/08/2000 12:00 PM
To: Robin Rodrigue/HOU/ECT@ECT
cc:
Subject: What time?

When do you want to go?

Let me know. I'll go whenever you want.


Please talk to Tracy and see if we need to update the credit terms and then
send the latest SDG&E EEI Redline to Sharon Firooz, Tony Molnar and Jim Walsh
at SDG&E.  Then follow up to see if we can get these issues resolved.  Kim
will be handling the RFP response.

Thanks

C

Their e-mails are:

1.  sfirooz@sdge.com tel:  858/650-6158
2.  jwalsh@sdge.com tel:  619/699-5022
3.mmolnar@sempra.com tel:  619/696-4521

 and


Enron is the...

v Most Innovative Company in America -  Five Consecutive Years
v Number One Energy/Commodity House - 2000
v Top Company for Quality of Management -  2000
v Second Best Company for Employee Talent -  2000

and the

v Number One BEST Place to Work in America  -  2001
Wouldn,t this be GREAT!

Yesterday, 250 of Fortune,s "100 Best Companies to Work for in America"
surveys were mailed to randomly selected U.S.-based employees.  Please check
your home mailbox to see if you were selected to participate in the survey.

Enron,s goal is to be in the Top 10 on Fortune,s list, up from our current
rank of No. 24 on this prestigious list.  The feedback you provide in the
survey is a key element in the evaluation process.  Your honest and open
responses, as well as written comments about your personal Enron experiences,
will help Enron achieve this goal.

Thanks for all you do everyday to make Enron the best place to work.