---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/11/2001
12:09 PM ---------------------------
To: Ellen Wallumrod/NA/Enron@ENRON
cc:
Subject: Gas Transaction Confirmation

---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/11/2001
12:07 PM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Sean Breen" <sbreen@czn.com>                           01/11/2001
11:26 AM

To: "Chris Foster" <cfoster@enron.com>
cc: "Art Gelber" <agelber@gelbercorp.com>
Subject: Gas Transaction Confirmation

I understand that your system for disseminating  confirmations of gas
transactions relies on use of?a single address/fax  number.? In order to
accommodate Citizens' recordkeeping processes in this  regard, please fax
confirmations of?Flexible Pricing transactions  to:
??? Sean Breen
??? Citizens Arizona Gas  Division
????c/o Gelber & Associates
??? 1010 Lamar St, Suite  540
??? Houston, TX?  77002
??? FAX:???  713.655.1623
?
Personnel at Gelber & Associates will ensure  that the document is forwarded
to me for signature and return to Enron.?  Thank you for your cooperation in
this matter.? Please call if you have  questions.


Marcello Fontana sent an article from this week's BusinessWeek on an
apparently
succesful policy to promote growth.

ECONOMIC VIEWPOINT
'Bribe' Third World Parents to Keep Their Kids in School
GARY S. BECKER

        Many well-meaning Americans, including college students and religious
organizations, have attacked Nike Inc. and other companies accused of
using child labor in their overseas plants in poor nations. I agree that
something should be done to save the children from dismal long-term
economic prospects. However, effective policies must recognize that the
fundamental cause of child labor is poverty, not greedy foreign and
domestic employers. To combat the effects of poverty, poor mothers
should be ''bribed'' to keep their children in school longer.

        Really poor families in Brazil, Mexico, Zaire, India, and many other
nations put their children to work because their meager earnings help
provide basic food and medicine for themselves and younger siblings.
Although parents may recognize that schooling would improve their
children's marketable labor skills later in life, they cannot afford the
''luxury'' of taking them out of the labor market. In essence, child
labor is the result of a conflict between short-term parental economic
interests and the long-term interests of the children.

        Adequate economic growth always eliminates child labor even without
laws

against it. But poor nations needn't wait until they grow richer. There
are short-term solutions. Many nations have compulsory schooling laws up
to age 15 or so, but they are often hard to enforce, especially in rural
areas and poor sections of large cities. Families who want their
children to work simply do not send them to school, or the children have
very high absenteeism rates. Officials are reluctant to punish parents
of working children, perhaps because they recognize that the problem is
not selfishness but poverty.

        SHARE THE BURDEN. I propose a better way: Give parents a financial
incentive to keep their children in school longer. Poor mothers should
be paid if schools certify that their children attend classes regularly.
Parents would be strongly motivated to send their children to
school--even when the children do not want to go--if these payments were
not much below what the children could earn. Most poor parents would
happily continue.

        [A few sentences were cut here.  I think they describe Progresa
program
in Mexico.  I think this program pays a few dozen dollars a month to families
that keep kids in school and immunized.]
Most poor Mexican families earn only about $100 a
month. That large a percentage increase should have a noticeable effect
on their behavior.

        Poor families in less developed nations whose children do go to school
are likely to withdraw their daughters when they become teenagers. This
tends to perpetuate economic inequalities, since the children of women
who receive little schooling also tend to be badly educated. Progresa
tries to combat this tendency to favor education of older sons by paying
a little more to families that keep teenage daughters enrolled.

        NARROW THE GAP. This pioneering Mexican approach appears to be highly
successful. An evaluation prepared for an October economics conference
in Chile shows that after only a couple of years, Progresa significantly
raised the schooling of children in very poor Mexican families. It has
also narrowed the education gap between girls and boys and reduced the
labor force participation of boys.

        Of course, governments need to find the tax revenue to finance
programs
like Progresa. A good start would be to recognize that Mexico and many
other less developed nations typically spend disproportionately on
universities and other education of their elites. Redistributing some of
this spending to the poor would both reduce inequality and stimulate
faster economic growth. Widespread basic education is more effective in
promoting economic development than generous subsidies to the richer
students who attend universities.

        Child-labor critics could spend their time more fruitfully by
attacking
not the overseas employment policies of multinationals but the social
policies of governments in poor nations that are really responsible for
the prevalence of child labor there. These governments, and perhaps
international organizations such as the World Bank, should follow
Mexico's example and introduce programs that pay poor mothers to keep
their teenage and younger sons and daughters in school and out of the
labor force.

David I. Levine                 Associate professor
Haas School of Business    ph: 510/642-1697
University of California    fax: 510/643-1420
Berkeley CA  94720-1900                            email:
levine@haas.berkeley.edu
http://web.haas.berkeley.edu/www/levine/


I really liked the commercials about specifics (i.e.  weather, EOL,
bandwidth).  The metal man was definitely at a different philosophical level
than where my brain operates.  Still not quite sure what was going on there.
Ode was a bit too idealistic.   The campaign in general was very different
than previous.   But I guess you know that and that's the point.   Again, I
think the commercials that showed why we are the most innovative were very
impressive.  Just telling people we are innovative made less of an impact.

Sorry I ruined your run.  At least you weren't molested by the River Oaks car
thief.

From: Margaret Allen@ENRON on 09/27/2000 08:24 AM
To: John Arnold/HOU/ECT@ECT
cc:
Subject: Commercials

So, what did you think?!  Don't lie or stretch the truth either -- you won't
hurt my feelings, I promise.

By the way, by the time I arrived home it was completely dark so I went for a
three mile run this morning.  Not fun, but I'm definitely awake right now!
BUT, it's all your fault I couldn't go last night....he!he!

Trade well, MSA


----- Forwarded by Jeff Dasovich/NA/Enron on 01/23/2001 10:48 AM -----

	Scott Govenar <sgovenar@govadv.com>
	01/22/2001 04:19 PM

		 To: Hedy Govenar <hgovenar@govadv.com>, Mike Day <MDay@GMSSR.com>, Bev
Hansen <bhansen@lhom.com>, Jeff Dasovich <jdasovic@enron.com>, Susan J Mara
<smara@enron.com>, Joseph Alamo <JAlamo@enron.com>, Paul Kaufman
<paul.kaufman@enron.com>, David Parquet <David.Parquet@enron.com>, Marcie
Milner <mmilner@enron.com>, Tim Belden <Tim.Belden@enron.com>, Rick Shapiro
<rshapiro@enron.com>, Jim Steffes <james.d.steffes@enron.com>, Alan Comnes
<acomnes@enron.com>, Chris Calger <ccalger@enron.com>, Mary Hain
<mary.hain@enron.com>
		 cc:
		 Subject: ABX1 1 - Hearing

The Senate Energy Committee met today to discuss ABX1 1.  They are not
scheduled to meet tomorrow but that is subject to change.

Senator Bowen does not intend to move the bill until the committee is
able to review the short term bids mandated in SBX1 7 this Wednesday.
Several Senators suggested that today's hearing may be moot until they
are able to get a better idea of the costs associated with a long term
contract.

Page 4, lines 20-21 - Will add language to enable the state to obtain
security interest in IOU assets.

Page 5, lines 35-40 - Legislative Counsel will review indemnification
language to determine if it is necessary in legislation, or, if can be
utilized in contracts.

Page 5, line 32, strike "or" and insert "and"

Sunset remains an issue with Republicans who are urging a sunset of the
bill's provisions instead of a sunset review.

With respect to the section of the analysis entitled "Issues Not
Addressed in Mock-Up"

1) Will not discuss bidding procedures at this time
2) Will not discuss bid evaluation process at this time
3) Will continue to discuss the sunset review provisions
4) Will not require DWR to sell excess power back to hour-ahead market
5) The financing mechanism does provide adequate assurance of repayment
6) Will not discuss additional stranded costs at this time
7) Will not discuss state contracting provisions at this time

PG&E suggested that it would make more sense for the DWR to sell power
directly to consumers.  They also want the state to assume QF contracts
(Bowen said this was a non-starter)

SCE suggested that DWR be responsible for ancillary services.  They also
suggested that DWR should, at their discretion, be able to assume
certain existing contracts.

Dynegy, in addition to the comments raised in the analysis, needs a
guarantee regarding the state's full faith of credit. They also
requested a waiver of sovereign immunity.

The only new opposition came from Women's Energy Matters who collected
10,000 signatures, all of whom refuse to pay the CPUC mandated 9%
increase.  They see no guarantee that the state will recoup its money in
the bill and advocate for condemnation of everything.

Scott


Hi, Jan!  I don't know if you'll get this, but Maman said your email was back
in business (my words, not hers!).  I asked the kids about going ahead to
Brazil with y'all.  Michael will do whatever; Kali was a little hesitant.
When do you think you'll be coming here and when do you think you'll leave.
We'll need to coordinate the travel schedules.  We're going to use OnePass
miles for at least two tickets, so we'll need to finalize things in early
April to get seats.

Talk to you soon.

Susan

P.S.-  Happy Birthday early!!


----- Forwarded by Jeff Dasovich/NA/Enron on 04/06/2001 05:25 PM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	04/06/2001 06:05 PM

		 To: "'Andy Brown (E-mail)'" <ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'"
<andybrwn@earthlink.net>, "'Baker Carolyn (E-mail)'"
<cabaker@duke-energy.com>, "'Bob Escalante (E-mail)'"
<rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'"
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'"
<curtis_l_kebler@reliantenergy.com>, "Dean. Nistetter (E-mail)"
<Dean.Nistetter@dynegy.com>, "'Douglas Kerner (E-mail)'" <DKK@eslawfirm.com>,
"'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan Smutny-Jones (E-mail)'"
<smutny@iepa.com>, "'Jeff Dasovich (E-mail)'" <Jeff.Dasovich@enron.com>,
"'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John Larrea (E-mail)'"
<john.g.larrea@williams.com>, "'John Stout (E-mail)'"
<John_H_Stout@reliantenergy.com>, "'Julee Malinowski-Ball (E-mail)'"
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent
Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Lynn Lednicky
(E-mail)'" <lale@dynegy.com>, "Marie Moretti (E-mail 2)"
<mmoretti@mccabeandcompany.net>, "'Marty Wilson (E-mail)'"
<mwilson@pstrategies.com>, "'McNally Ray (E-mail)'"
<rmcnally@mcnallytemple.com>, "''Nam Nguyen' (E-mail)'"
<nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'"
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'"
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'"
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>,
"'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'"
<smara@enron.com>, "'Tom Ross (E-mail)'" <tross@mcnallytemple.com>, "Tom
Williams (E-mail)" <tcwillia@duke-energy.com>, "'Alex Sugaoka (E-mail)'"
<alex.sugaoka@uaecorp.com>, "'Bill Carlson (E-mail)'"
<william_carlson@wastemanagement.com>, "'Bill Woods (E-mail)'"
<billw@calpine.com>, "'Bob Ellery (E-mail)'" <bellery@spi-ind.com>, "'Bob
Gates (E-mail)'" <bob.gates@enron.com>, "'Cody Carter (E-mail)'"
<cody.carter@williams.com>, "'Curt Hatton (E-mail)'"
<Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>,
"'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'"
<fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'"
<dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>,
"'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'"
<eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'"
<frank.derosa@gen.pge.com>, "Frazier Blaylock (E-mail)"
<frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'"
<Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'Jim
Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'"
<jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'"
<jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>,
"'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'"
<khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'"
<kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'"
<lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'"
<marty_mcfadden@ogden-energy.com>, "'Paula Soos'"
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'"
<rjhickok@duke-energy.com>, "Rick S. Koebbe (E-mail)"
<rskoebbe@powerworksinc.com>, "'Rob Lamkin (E-mail)'"
<rllamkin@seiworldwide.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>,
"'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'"
<steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>,
"'William Hall (E-mail)'" <wfhall2@duke-energy.com>,
<trusso@mcnallytemple.com>, <sadlersa@earthlink.net>, <mstultz@epsa.org>,
<rtemple@mcnallytemple.com>, <tracy.fairchild@edelman.com>,
<megan.beiser@edelman.com>, <deborah.fiorito@dynegy.com>, <lchurch@epsa.org>,
Katie Kaplan <kaplan@iepa.com>, <tcwillia@duke-energy.com>,
<rwhyde@duke-energy.com>, Beth Miller <bam_miller@hotmail.com>,
<rlapsley@yahoo.com>, Jonathan Wilcox <wilcoxjr@earthlink.net>, Alfie Charles
<alfie_charles@hotmail.com>
		 cc:
		 Subject: Others reactions to PG&E bankruptcy

Following are reactions from:

IBEW
Duke
Reliant
Sempra
Fitch

FYI, Jan reacted on behalf of IEP during a media teleconference earlier
today, and also by a statewide satellite feed.

Thanks - Jean

--
Jean Munoz
McNally Temple Associates, Inc.
916-447-8186
916-447-6326 (fx)

IBEW Statement on PG&E Bankruptcy

PR Newswire
04/06/01, 5:02p
(Copyright , 2001, PR Newswire)

WASHINGTON, April 6 /PRNewswire/ -- In response to the bankruptcy
announcement made by Pacific Gas and Electric, Edwin D. Hill, International
President of the International Brotherhood of Electrical Workers (IBEW),
issued the following statement.

"Pacific Gas and Electric's filing for bankruptcy could make a dire situation
in California even worse. On behalf of the 13,500 IBEW Local Union 1245
members employed by PG&E and the public they serve, we believe it is
imperative that constructive action be taken now.

"Specifically, we call on the Federal Energy Regulatory Commission (FERC) to
stop dragging its feet and impose price controls on the wholesale electricity
market in California. It is obvious that price gouging by wholesale suppliers
has bled dry the investor-owned utilities and precipitated this crisis. The
state has purchased power in an effort to prop up the system, but it too has
paid the same inflated prices. This only threatens California's budget
surplus and places an unfair burden on taxpayers while doing nothing to
address the root of the problem.

"We also believe that it is time for government and industry to work together
to jump start projects to improve the interconnected transmission grid in the
Western states so that power can be quickly and efficiently moved to where it
is needed. Prompt action on such projects could have helped alleviate the
current problems, and they should commence with all due speed.

"Another factor that has driven the crisis is the lack of adequate generation
facilities to power the growth of California and other Western states. We
urge the Western Governors Association to take the lead in helping to chart a
course that will bring more facilities on line and provide short and long
term solutions to these difficulties.

"Even though we have been assured that PG&E employees will still be paid, and
we know that their pensions are protected by law, we will fight to ensure
that our collective bargaining rights are honored during this process. We
will work with our Local Union 1245, utility management, Governor Davis and
all other parties to restore sanity and reliability to California's gas and
electricity systems."

SOURCE International Brotherhood of Electrical Workers

/CONTACT: Jim Spellane of the International Brotherhood of Electrical
Workers, 202-728-6014/

Duke Energy Statement Regarding Pacific Gas & Electric Company Filing for
Chapter 11 Reorganization

PR Newswire
04/06/01, 4:34p
(Copyright , 2001, PR Newswire)

CHARLOTTE, N.C., April 6 /PRNewswire/ -- Duke Energy Corporation (NYSE: DUK)
today issued the following statement:

We regret that the collective actions to mitigate Pacific Gas & Electric's
(PG&E) financial crisis were unsuccessful in keeping it from filing for
Chapter 11 reorganization. However, the Chapter 11 filing provides a defined
process to collect our past receivables and keep PG&E in business going
forward.

Duke Energy had taken a number of aggressive steps to limit its financial
exposure to uncertainties in California's energy market, including the
potential bankruptcy of the state's investor-owned utilities. The company has
also sold a significant portion of its energy output from its California
plants through fixed-price, forward contracts to creditworthy entities.

Duke Energy continues to operate its power plants in California efficiently
and effectively to supply the state's energy needs. The company is working
with federal and state officials and members of the state legislature to help
California solve its electricity problems.

Duke Energy, a diversified multinational energy company, creates value for
customers and shareholders through an integrated network of energy assets and
expertise. Duke Energy manages a dynamic portfolio of natural gas and
electric supply, delivery and trading businesses -- generating revenues of
more than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C.,
is a Fortune 100 company traded on the New York Stock Exchange under the
symbol DUK. More information about the company is available on the Internet
at: www.duke-energy.com.

SOURCE Duke Energy Corporation

/CONTACT: Bryant Kinney of Duke Energy Corporation, 704-382-2208, or 24-Hour,
704-382-8333/

/Company News On-Call: http://www.prnewswire.com/comp/257451.html or fax,
800-758-5804, ext. 257451/

/Web site: http://www.duke-energy.com /

Reliant Energy Says Bankruptcy Action By Pacific Gas and Electric Co. Not
Unexpected

PR Newswire
04/06/01, 4:11p
(Copyright , 2001, PR Newswire)

HOUSTON, April 6 /PRNewswire/ -- Reliant Energy (NYSE: REI) said today that
the bankruptcy filing announced by Pacific Gas and Electric Company was not
an unexpected occurrence and does not increase Reliant Energy's financial
exposure.

Steve Letbetter, Reliant Energy chairman, president, and chief executive
officer, said Reliant Energy planned for such a possibility during the fourth
quarter 2000 and continues to do so.

"Our exposure to financial risk as a result of Pacific Gas and Electric's
action is not expected to increase," Letbetter said. "This development does
not impact the level of first quarter results we have previously anticipated.
We established a $39 million reserve in the fourth quarter of 2000, and we
will continue to reserve appropriate funds."

According to Letbetter, bankruptcy is one of the mechanisms that will get
outstanding receivables paid and can be a part of an overall, constructive
solution to California's energy crisis.

"Despite this bankruptcy action, Reliant Energy will continue to work with
the state to ensure our generating plants are available to serve California's
electricity needs," Letbetter said. "We remain committed to helping find a
long-term solution to California's energy crisis."

Reliant Energy plans to release its earnings on Monday, April 16.

Reliant Energy, based in Houston, Texas, is an international energy services
and energy delivery company with approximately $29 billion in annual revenue
and assets totaling more than $32 billion. The company has more than 23,000
megawatts of power generation in operation in the U.S. and is one of only
three companies to rank among both the five largest power marketers and the
five largest natural gas marketers in the nation. The company also has
wholesale trading and marketing operations and more than 3,400 megawatts of
power generation in Western Europe. Reliant Energy's retail marketing and
distribution operations serve nearly four million electricity and natural gas
customers in the U.S., and its Internet infrastructure and communications
company serves business customers in Texas.

For more information about Reliant Energy, visit the company's website at
www.reliantenergy.com.

SOURCE Reliant Energy

/CONTACT: media, Richard Wheatley, 713-207-5881, or investors, Dennis Barber,
713-207-3042, both of Reliant Energy/

Sempra Energy And SDG&E Reaffirm Strong Financial Position in Response to
PG&E Bankruptcy

Business Wire
04/06/01, 4:00p
(Copyright , 2001, Business Wire)

SAN DIEGO--(BUSINESS WIRE)--April 6, 2001--Sempra Energy and San Diego Gas &
Electric (SDG&E) officials took the opportunity of today's Chapter 11
bankruptcy announcement by Pacific Gas & Electric (PG&E) to reaffirm their
companies' strong financial position and the significant regulatory and
legislative differences between SDG&E and PG&E.

"We want to reassure our customers and shareholders that Sempra Energy and
SDG&E remain very strong and financially viable companies," said Stephen L.
Baum, chairman, president and chief executive officer of Sempra Energy, the
parent company of SDG&E. "SDG&E is continuing its record of providing safe
and reliable gas and electric service for our 1.2 million customers today,
tomorrow and for years to come. There are several significant financial,
legislative and regulatory differences that distinguish Sempra Energy and
SDG&E from PG&E."

SDG&E is covered under Assembly Bill 265, a law signed by the Governor last
September which guaranteed that SDG&E will be able to collect the difference
between the capped price of electricity and the wholesale cost of power,
providing the power was prudently purchased. PG&E is not covered by AB 265
and that guarantee. At the end of February, the under-collection in the
balancing account was $681 million. Since the state's power procurement
agency, the California Department of Water Resources (DWR), has been
purchasing power for SDG&E, the growth of the company's balancing account has
slowed significantly.

Unlike PG&E, SDG&E has been able to pay its wholesale electric bills to the
DWR, the California Independent System Operator, the California Power
Exchange and Qualifying Facilities that cogenerate power for the utility.
Additionally, the Sempra Energy companies have no significant credit exposure
to PG&E.

"Sempra Energy and SDG&E have long advocated that the Federal Energy
Regulatory Commission institute temporary regional wholesale price caps to
help stem the financial problems such as those experienced by PG&E," Baum
added. "We are also committed to promoting and instituting comprehensive
energy conservation programs for all customers to help control bills and
decrease the chances of rotating outages this summer."

Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy
services holding company with 12,000 employees and annual revenues of $5.4
billion. Through its eight principal subsidiaries -- SoCalGas, SDG&E, Sempra
Energy Solutions, Sempra Energy Trading, Sempra Energy International, Sempra
Energy Resources, Sempra Communications and Sempra Energy Financial -- Sempra
Energy serves more than 9 million customers in the United States, Europe,
Canada, Mexico and South America.

   CONTACT:  Sempra Energy
             Laura Farmer/Art Larson, 877/866-2066 (Media)
             www.sempra.com
                   or
             Karen Sedgwick, 877/736-7727 (Investors)

Fitch Cuts Pacific Gas and Electric, So Cal Edison Ratings

Business Wire
04/06/01, 4:57p
(Copyright , 2001, Business Wire)

NEW YORK--(BUSINESS WIRE)--April 6, 2001--Fitch has lowered its ratings for
Pacific Gas and Electric Company (Pac Gas) senior secured and preferred
securities into the default category based on the utility's voluntary filing
today of a petition under Chapter 11 of the U.S. Bankruptcy Code.

Fitch also believes that Pac Gas' bankruptcy filing could complicate Southern
California Edison's (So Cal Ed) likelihood of accomplishing a sale of its
transmission assets to the State of California. Consequently, Fitch has
lowered So Cal Ed's senior secured debt rating and changed the Ratings Watch
to Negative from Evolving. The Ratings Watch status of Edison International,
the parent of So Cal Ed, is also changed to Negative from Evolving. The new
ratings are:

Pacific Gas and Electric Company

   First Mortgage Bonds to `DDD' from `B-`;
   Preferred Securities to `D' from `C';
   Commercial Paper `D' Unchanged;
   Rating Watch Not applicable Negative.

   Fitch does not rate the securities of PG&E Corp.

   Southern California Edison Company

   Senior Secured Debt to `CCC' from `B-`;
   Senior Unsecured Debt `CC' unchanged;
   Preferred Stock `C' unchanged;
   Commercial Paper `D' unchanged;
   Changed to Rating Watch Negative from Rating Watch Evolving.

   Edison International

   Senior Unsecured Notes `CC' unchanged;
   Trust Preferred Securities `C' unchanged;
   Commercial Paper `D' unchanged;
   To Rating Watch Negative from Rating Watch Evolving.

Pacific Gas and Electric Company is a wholly owned subsidiary of PG&E Corp.,
and is based in San Francisco, CA. Southern California Edison is a wholly
owned subsidiary of Edison International, and is based in Rosemead,
California.

   CONTACT: Fitch
            Lori R. Woodland, 1-312/606-2309, Chicago
            Steven Fetter, 1-212/908-0555, New York


Hello UT Candidates,

As most of you have already heard unfortunately Becky Bruce is no longer with
Enron.  My name is Kristin Gandy and I will be taken over recruiting for UT.
I wanted to send you a quick email to let you know about some changes we are
making.

Attached please find a document with information containing Enron's offer
letter revisions.  Have a wonderful holiday season and I hope to hear from
you soon.

Please contact me at 713-345-3214 if you have any questions.

Thank you,

Kristin Gandy
Associate Recruiter


Attached is the revised version of our Enron comments memo on the House
electricity restructuring bill.  Please disregard the version that was
e-mailed to you from Cynthia Sandherr on December 15th.  I will be arranging
a conference call shortly to finalize the document.  Thanks.
---------------------- Forwarded by Allison Navin/Corp/Enron on 12/17/99
10:22 AM ---------------------------

"Wenner, Adam" <awenner@velaw.com> on 12/17/99 10:10:32 AM
To: Allison Navin/Corp/Enron@ENRON
cc:

Subject: Memo Re HR2944

Please see the attached draft memorandum re Comments on H.R. 2944.

 <<Memo Re HR2944 (Word).DOC>>

 - Memo Re HR2944 (Word).DOC


Angela,

I'll take the 2 tickets for Feb. 25 th vs. Phoenix

Chris


Mark,
 Supper on Thursday sounds great.   We can plan to eat right after
your meetings end.  I will get tickets for the play Thursday night if you
are interested (I still go to all the plays - If you're not interested, I'll
just go on Sunday).  I'm looking forward to getting together again (I can
show you our new NMR).
 If I can do a little campaigning - don't repeat what I say here, I
don't want to get in any trouble.  I'm enclosing the brief notes from a
science building meeting last fall about the campaign.  We hope the campaign
isn't just about bricks and mortar.  It would be a great opportunity to
strengthen the sciences.  #'s 1, 2 and 3 below were particularly important
to many people.  #1 is getting scholarship money to attract good students
into the sciences.  #2 is endowment for equipment (we have a growing
endowment in chemistry and biology - I'll tell you about it when you are
here).  It is just that science has become very expensive and we would like
for this endowment to grow.  #3 is just to look at remodeling the science
building - chemistry doesn't need this as much as biology and psychology.  I
don't want you to push for these particular things - they would know you had
been lobbied!!  It is just that I hope there will be some attempt to
strengthen academics in the campaign - I'm also aware that some of our
requests may not be the most fundable items.  It is always easier to raise
big money on bricks and mortar.
 See you soon,  I'm off to class.
       Doc

------------------------------------------------------------
Science Building Meeting
August 27, 1999

Present: Biology,  Chemistry,  Computer,  Math,  Psych and  Physics  faculty

Ideas presented for funding possibilities in the upcoming campaign that
would benefit the academic programs offered in H-T Science Building:

 1. Presidential scholars
  To maintaining a steady stream of very good students in
            science and math classes.
  Many faculty thought this was very important!

 2. Endowment for equipment and computers
  Build the endowment for science equipment and computers to
            help maintain a
  constant and enhanced  supply of money to buy equipment and
            computers.

 3. Remodeling H-T science building
  Air condition some labs and lecture rooms.
  Remodel laboratory space for present needs of our programs.
            (look at whole building).

 4. Endowment for Faculty salaries

 5. Endowment for student research

 6. Endowment for summer programs

 7. Endowment for travel funds

 8. Endowment for named lecturers

 9. Staffing concerns
  Possibility of endowed chairs,  lab technician  and/or
            equipment repair technician.

  We know the lab and equipment repair people are on-going
            expenses, but maybe money
   could be raised to endow them.

These are the ideas that were suggested at our meeting.   Different faculty
would have different priorities within this list.   We all agreed it is
extremely important to raise some endowment funds in the next campaign for
the direct benefit of the programs offered in H-T.


fyi...

 -----Original Message-----
From: 	Cantrell, Rebecca W.
Sent:	Monday, November 26, 2001 11:16 AM
To:	Concannon, Ruth; Townsend, Judy; Lamadrid, Victor; Muhl, Gil; Superty, Robert; Calcagno, Suzanne; McMichael Jr., Ed; Smith, George F.; Pollan, Sylvia S.; Kinsey, Lisa; Luce, Laura; Shireman, Kristann; Miller, Stephanie; Lucci, Paul T.; Gay, Randall L.; Sullivan, Patti; Hodge, John; Tholt, Jane M.; Kuykendall, Tori; Mahmassani, Souad; South, Steven P.; Shively, Hunter S.; Grigsby, Mike; Neal, Scott; Gomez, Julie A.; Sullivan, Colleen
Cc:	Steffes, James D.; Lawner, Leslie; Neustaedter, Robert
Subject:	New FERC Policy on Negotiated Rate Deals

This is an alert that FERC will be more critical in the future of negotiated rate deals.  The orders discussed below dealt with buyout provisions in negotiated rate deals that Tennessee, ANR and Columbia had done.  These provisions had previously been permitted as negotiated rates, but FERC has decided that there is "significant potential for undue discrimination" and the recourse rates do not provide an adequate alternative.   Thus, anything in a negotiated rate deal that is not strictly rate-related will most likely be subject to intense scrutiny.

FERC ADDS ANOTHER LAYER TO POLICY ON NEGOTIATED-RATE AUTHORITY

Acting on a series of contract-specific cases, FERC last week sharpened its policy on what is, and is
not, allowed under negotiated rates. In further defining its policy, the commission continued to lean
heavily on the "linchpin" of negotiated-rate authority - that a customer not willing or able to negotiate a
deal must always have the option of obtaining needed capacity under cost-based recourse rates.
During discussion of the orders, Chairman Pat Wood III said it was "important to keep in mind, as we
rush into the brave new world on the gas side," that "all customers must be treated on a nondiscriminatory
basis by pipelines." Last week's proclamation should be considered "a reaffirmation of that nondiscriminatory
trend," he asserted.
In representative language, the commission said it wants to ensure that parties "are clear about contracting
practices that we find unacceptable because they present a significant potential for undue discrimination and those
that we find acceptable because they can be permitted without substantial risk" of such unequal treatment.
FERC declared that a "key factor" in determining whether a negotiated provision is considered an
"appropriate material deviation" from a pipeline's filed tariff schedule is the extent to which recourse rates
provide "adequate alternatives" to other shippers.
In cases involving rates negotiated by ANR Pipeline Co. (GT01-25, RP99-301), Tennessee Gas Pipeline
Co. (RP96-312, et al.) and Columbia Gas Transmission Corp. (CP01-70), the commission ruled that the
buyout provisions are not allowed unless they are offered to all shippers as part of the pipelines' generally
available tariffs.
The provisions at issue allow customers to buy out or terminate their contract demand levels prior to
the end of the deals. While the commission previously has held that such provisions can be included in a
negotiated-rate package, "we have reconsidered that holding" because similar buyout opportunities are
not available to more traditional shippers operating under recourse rates, it said in the Tennessee order.
Where a customer is seeking service for a set contract term and quantity, recourse service provides an
"adequate alternative," the commission observed. "However, if the customer desires a special contract
demand reduction or early termination right not provided in the generally applicable tariff, the availability
of service at the recourse rate does not provide an adequate substitute, since recourse service would not
include any such provision." A shipper obtaining such a provision would be insulated from a certain
degree of risk, giving it "an advantage over recourse-rate shippers," the commission pointed out.
"A shipper's right to reduce, or terminate, its contract demand before the expiration of its contract is a
valuable right, since it can enable the shipper to avoid significant liability for future reservation charges,"
FERC said, adding that "such a valuable right must be granted in a not unduly discriminatory manner."
Requiring pipelines to file generally applicable tariff provisions setting forth the conditions under
which they will offer contract demand reduction rights "is the best means of assuring that those rights will
be negotiated" in a fair manner, FERC reasoned. Once approved, the tariff language "will require the
pipeline to grant similar rights to similarly situated customers."
Commissioner Linda Breathitt applauded the policy shift, characterizing it as a much-needed shot in
the arm for a program that had become "muddled." Through a "tortured line of cases," FERC's definitions
of allowable contracting practices were "obscured," Breathitt said in welcoming the new "common-sense"
approach. The "tug of war" that parties have engaged in over the past few years "really hasn't served our
objective of ensuring that nondiscriminatory rates and service" are available to all shippers, she said.


The Winter 2002 issue of the AP Transmission Report has been posted to the
AP OASIS!  It can be accessed at
http://oasis.ecar.org:488/documents/AP/Volume5Newsletter.pdf.  A copy of the
newsletter is also attached in Adobe Acrobat format for your convenience.

 <<Newsletter Issue 5 (Final Version).pdf>>

Thank you!
Allegheny Power Transmission Marketing

 - Newsletter Issue 5 (Final Version).pdf


Rod,
     I'll be somewhere between Pueblo and the Royal Gorge, but I'll try to stop and patch in. I trust that everyone already understands what is contracted and the only concern is our recontracting capability. Right?

Dan
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


Mtg w/ Jeannie Mandelker EB 47112


Teco Tap       52.500 / HPL IFERC

Texoma         20.000 / Enron

LS HPL LSK IC       40.000 / Enron


See the attached (one shows redlining, the other does not) and let me know if
you have further questions.

Christine Stokes
12/20/99 10:24 AM
To: Susan Scott/ET&S/Enron@ENRON
cc:

Subject: Duke Contract

Here is the Duke contract.


Shelley:
I'm talking to those folks this afternoon---I'll be spending a lot of time
pushing the themes of the settlement we worked on for so darned long as the
solution to California's gas woes.  Will also help them understand the
woes---and there are many---which we discussed many times.  If you'd like to
participate in my call this afternoon, and/or if it would be useful for me to
sit in on your discussion, just let me know.  In any case, I'll report back
on what happens on my call this afternoon.

Best,
Jeff

	Richard Shapiro
	03/23/2001 01:00 PM

		 To: Jeff Dasovich/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT
		 cc:
		 Subject: FW: CEC Interviews

---------------------- Forwarded by Richard Shapiro/NA/Enron on 03/23/2001
01:00 PM ---------------------------
From: Shelley Corman/ENRON@enronXgate on 03/23/2001 12:14 PM
To: James D Steffes/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Steven J
Kean/NA/Enron@Enron
cc:

Subject: FW: CEC Interviews

FYI
 -----Original Message-----
From:  Corman, Shelley
Sent: Friday, March 23, 2001 12:14 PM
To: Miller, Mary Kay; Fossum, Drew; Harris, Steven
Subject: CEC Interviews

McKinsey & Co. has been engaged by the State of California to evaluate
conditions in the gas market to California.  A Mckinsey representative,
together with a CEC staffer, asked to interview TW next Wednesday, Mar 28
(time TBD).  McKinsey forwarded the attached list of questions.  You'll see
that they are very general & policy oriented.  I have taken a stab at filling
in proposed answers.


Eric,

Please find Mark Taylor's comments related to your request:

Steve Douglas-Tax person working on the MG Acquisition suggested an October 1
date related to MG acting as a clearing broker due to the following:
-Value of the transaction would be impacted if imputed income was made
related to acting as a clearing broker.
Phone number - 713 853-0938

David Mitchell-CFTC Attorney with the Law firm of Kad, Walder, Wickershe, and
Taft
  Mark Taylor needed to address some items with David

Mark Taylor - phone number 713 853-7459

I would suggest talking to Steve Douglas for Tax questions and Mark Taylor
for legal questions.  Please let me know if I can be of any assistance.
(have not heard from Al)

Thanks,
Jeff (713 853-5294)

---------------------- Forwarded by Jefferson D Sorenson/HOU/ECT on
08/23/2000 10:56 AM ---------------------------

Eric Gadd
08/22/2000 10:02 AM
To: Jefferson D Sorenson/HOU/ECT@ECT
cc: Alfred Pennisi/NYC/MGUSA@MGUSA
Subject: Re: MG update

Jeff-

Thanks for the memo.  After meeting with Al Pennisi in NY on Friday and
discussing your memo, I am confident that all the issues you raise can be
addressed so that we can have MG London act as Enron's clearing broker.  I've
asked him to contact you to review in more detail.  Please let me know the
outcome and action plan - - - is it feasible to complete this week?

	From:  Jefferson D Sorenson                           17/08/2000 19:08

To: Eric Gadd/LON/ECT@ECT
cc: Brent A Price/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT

Subject: MG update

Please find attached an action plan to determine the feasibility of MG acting
as a clearing broker on Enron's behalf.
As indicated on my voice message please call me so that we can discuss. (713
853-5294)

Thank you,
Jeff
---------------------- Forwarded by Jefferson D Sorenson/HOU/ECT on
08/17/2000 01:02 PM ---------------------------

David P Dupre
08/17/2000 12:59 PM
To: Jefferson D Sorenson/HOU/ECT@ECT
cc:
Subject: MG update


----- Forwarded by Tana Jones/HOU/ECT on 08/01/2000 11:30 AM -----

	Tom Moran
	08/01/2000 11:29 AM

		 To: Tom Moran/HOU/ECT@ECT
		 cc: Frank L Davis/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Tana
Jones/HOU/ECT@ECT, Samuel Schott/HOU/ECT@ECT, Sheri Thomas/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Bernice Rodriguez/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT,
Debbie R Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli
Campbell/HOU/ECT@ECT, Lisa Gillette/HOU/ECT@ECT, Molly Harris/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
		 Subject: Re: EOL Credit Responses 07/31/00

I inadvertently sent out the incorrect file yesterday.  The correct EOL
approvals are attached below.

Sorry for the confusion.
tm

From:  Tom Moran
07/31/2000 05:24 PM

To: Frank L Davis/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Tana
Jones/HOU/ECT@ECT, Samuel Schott/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Sheri
Thomas/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Bernice Rodriguez/HOU/ECT@ECT,
Brant Reves/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, David
Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Lisa Gillette/HOU/ECT@ECT,
Molly Harris/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, Lesli Campbell/HOU/ECT@ECT
cc:
Subject: Re: EOL Credit Responses 07/31/00

Please find attached Credit's EOL responses for 7/31/00

Regards,
tm


Any GCP adjustments will be made in red.

Bernice
x37972

From: Walter Guidroz/ENRON@enronXgate on 04/13/2001 10:56 AM
To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Brant Reves/ENRON@enronXgate,
Debbie R Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli
Campbell/ENRON@enronXgate, Cynthia Clark/ENRON@enronXgate, Enron Europe
Global CounterParty/LON/ECT@ECT, Stephanie Sever/HOU/ECT@ECT, Tom
Moran/ENRON@enronXgate, Claudia Clark/HOU/ECT@ECT, William S
Bradford/ENRON@enronXgate, 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, Tim Davies/LON/ECT@ECT,
Karen O'Day/NA/Enron@Enron, Tanya Rohauer/ENRON@enronXgate, Kelly
Lombardi/NA/Enron@Enron, Brian Lindsay/Enron Communications@Enron
Communications, EOL Call Center@ECT, Bernice Rodriguez/HOU/ECT@ECT, Bill D
Hare/HOU/ECT@ect, Amy Heffernan/Enron Communications@Enron Communications,
Molly LaFuze/Enron Communications@Enron Communications, Danny Clark/Enron
Communications@Enron Communications, Stephanie Panus/NA/Enron@Enron,
Mandola@/O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=BCBC586C-1D5A658C-862568C
D-532EF3@EX@enronXgate,
Kyle@/O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=97746094-1B0A69C0-86256945-5
803A9@EX@enronXgate
cc:
Subject: EOL approvals, 04-13-01

Please see attached.


Ben decided to send the exhibits to Coral, so that's where this question came
from.

Will we have an exhibit U?

I know we owe you some answers from your email of the 6th.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 12/11/2000 05:41
PM ---------------------------

	From:  Ben F Jacoby @ ECT                           12/11/2000 05:25 PM

Sent by: Ben Jacoby@ECT
To: Kay Mann/Corp/Enron@Enron, Chris Booth/NA/Enron@Enron
cc:

Subject: Performance guarantees

Any ideas on this?

Ben
---------------------- Forwarded by Ben Jacoby/HOU/ECT on 12/11/2000 03:48 PM
---------------------------

"Seigler, Tom" <tseigler@coral-energy.com> on 12/11/2000 04:50:15 PM
To: "'Ben.F.Jacoby@enron.com'" <Ben.F.Jacoby@enron.com>
cc:
Subject: Performance guarantees

Ben, Exhibit U indicates that liquid fuel guarantees are in Sec. 10.8.4.  I
could not fine them in that section.  Could you point me to where the liquid
fuel guarantees are located?

Tom Seigler
713-767-5672
Fax: 713-265-5672


It has become customary to prepare Unanimous Consents of Directors for many
transactions even if such actions are not required by the relevant By-laws
and/or Certificate of Incorporation.  Please consider carefully whether
Unanimous Consents of Directors are necessary or appropriate in a particular
transaction, i.e., the transaction is a significant transaction or evidence
of authority is required for a legal opinion.  When in doubt, please review
the By-laws and Certificate of Incorporation of the relevant entity and
discuss the matter with a member of the Office of the General Counsel.

Thank you.


Steve,
Congratulations.  Welcome back.  I sent you a note and a spreadsheet with the
deals we have booked in our system.  I was trying to reconcile them to your
list of deals.  I could not.  But I think the best thing to do is to simply
start over and book the deals you tell me to.  I just need the exact terms.
I know it's your first day back and you are probably swamped, but when you
get a chance, please give me a call.  Richard wants me to have these deals
valued by the end of this month's P&L.  Thanks.

DG
713-853-9573


I am sort of getting the run around on whether or not the rejection/assumption decisions need to be presented to the BTRC if the decisions were already part of a signed Stiputation.  I got on the BTRC agenda for tomorrow's meeting, but Deb Korkmas seems to think that BTRC approval is not required.  I have left a message with Chip Schneider just to make sure that we have to make a presentation.

This is making me crazy,
Ruth


-----Original Message-----
From: 	Allen, Diana
Sent:	Thursday, January 31, 2002 8:05 AM
To:	Black, Tamara Jae
Subject:	FW: NetCo Production Databases Reorg.

TJ.

Can you please let everyone know that our Power Decision Support database will be down today, and could possible stay down until tomorrow morning.

I will notify you as soon as the database comes on line again.

Thanks,

Diana Allen
X35356

 -----Original Message-----
From: 	Tang, Mable
Sent:	Wednesday, January 30, 2002 1:28 PM
To:	Allen, Diana; Poston, David; Luu, Duong; Lim, Francis S.; Krishnaswamy, Jayant; Chitradurga, Sundar; Powell, John D.; Ramesh, Ganapathy; Schomer, Chris; McKinney, Hal
Cc:	Wei, Zhiyong; Nat, Steve; Johnson, Jeff; Stock, Steve; Hillier, Bob; Berger, Michael; Charbonnet, Clement; Invedy, Tantra; Johnston, Jamey; Ritacco, Michael
Subject:	NetCo Production Databases Reorg.

Hello Everyone,

The Oracle DBA team would like request NetCo production database downtime starting tomorrow Thursday 01/31/2002 at
10am to perform database reorg.  This reorg is important to ensure efficient data access after the data cleansing effort.

Attached is the summary of the reorg work and the estimated downtime.  All NetCo production databases will be ready
no later than Friday 02/01/2002 at 7am if not earlier.

Please response with your approval by COB today.  If you have any further questions, please feel free to contact me or your dbas.

Thanks,
Mable

 -----Original Message-----
From: 	Charbonnet, Clement
Sent:	Wednesday, January 30, 2002 12:03 PM
To:	DL-Oracle DBA
Subject:	Database Reorg.

Attached is the spreadsheet of the database reorg sizes.

Clement


California governor blames utilities for blackouts

By JENNIFER COLEMAN, Associated Press
SACRAMENTO, Calif. (March 21, 2001 8:10 a.m. EST http://www.nandotimes.com) -
Gov. Gray Davis said the state's two largest utilities are partly to blame
for this week's widespread blackouts because they failed to pay millions of
dollars owed to environmentally friendly power generators.
Davis said the utilities took money from customers while failing to pay the
alternative plants, which use renewable forms of energy like steam and
natural gas to generate electricity.
The state has been spending about $45 million a day since January to buy
power for customers of Southern California Edison and Pacific Gas and
Electric Co., which are so credit-poor that suppliers refuse to sell to them.
"It's wrong and irresponsible of the utilities to pocket this money and not
pay the generators," the governor said at a Capitol news conference Tuesday.
"They've acted irresponsibly and immorally and it has to stop."
The state lost about 3,100 megawatts, or enough electricity to power 3.1
million homes, on Tuesday from alternative energy plants that say they can't
afford to keep operating because the utilities haven't paid their bills in
weeks.
Davis said the PUC planned to issue an order next week directing the
utilities to pre-pay future bills to the alternative plants.
PG&E called Gray's statements "inappropriate and unjustified," adding that it
was negotiating a payment plan with the suppliers. Edison said it is intent
on paying creditors and working with the Public Utilities Commission to pay
the plants for future power sales.
Edison and PG&E say they have lost more than $13 billion since last June to
climbing wholesale electricity prices, which the state's 1996 deregulation
law prevents them from passing on to ratepayers.
Keepers of the state's power grid were cautiously optimistic that California
might get through Wednesday without another day of rolling blackouts after
two idle plants were returned to service.
"Never say never - but it appears we are going to be in better shape tomorrow
(Wednesday) and for the rest of the week," said Patrick Dorinson, a spokesman
for the California Independent System Operator, which oversees most of the
state's power grid.
About a half-million customers were hit by Tuesday's blackouts, which snarled
traffic and plunged schools and businesses into darkness from San Diego to
the Oregon border.
On Tuesday, Assembly Republican leader Bill Campbell called on PUC President
Loretty Lunch to resign. Lynch was appointed by Davis.
Lynch couldn't be reached for comment, but a spokesman for the governor
dismissed Campbell's complaints.
Meanwhile, a leading lawmaker on energy issues said the PUC may soon have to
raise rates by about 15 percent to cover the state's costs and its utilities'
bills.
"My sense is that people will appreciate having some certainty and being able
to plan for it," said Assemblyman Fred Keeley. "They don't have to like it,
but I think they'll appreciate it."
Davis has said he is confident the utilities and the state can pay their
bills without further rate increases.
In the meantime, the ISO is counting on conservation to avoid more rolling
blackouts. Dorinson estimated that conservation accounted for about 900
megawatts in savings during Tuesday's peak usage.
"That probably was the difference today in helping us avoid any rolling
blackouts late into the evening," Dorinson said.
Tuesday's outages began at 9:30 a.m. and continued in 90-minute waves until
about 2 p.m., when the ISO lifted its blackout order. They were blamed for at
least one serious traffic accident.
The blackouts were caused by a combination of problems, including
unseasonably warm weather, reduced electricity imports from the Pacific
Northwest, numerous power plants being shut down for repairs and the loss of
power from alternative generators.


strippers named Kandy Kane = bad . . .

Regards,

Kevin A. Boone
Accenture -- Houston
(Octel) 713.837.1638
(Client) 281.848.1619
(C) 713.306.7940
(H) 713.864.4149
Kevin.A.Boone@accenture.com

Our web address is http://www.accenture.com

----- Forwarded by Kevin A. Boone/Internal/Accenture on 01/31/2002 01:26 PM
-----

            "Jason Holleman"
            <jdholleman@hotmail.co        To:     BYancey@highland.com, billdarsinos@aol.com, Hapiehiker@aol.com,
            m>                            don1315@hotmail.com, jasong1@bellsouth.net, jawoodsjr@email.msn.com,
                                          Jeffamo@aol.com, Kevin A. Boone/Internal/Accenture@Accenture,
            01/31/2002 12:56 PM           Kevinroe@aol.com, jameskevinwilliams@yahoo.com, mbeam99@hotmail.com,
                                          mrp1299@aol.com, scott.curry@chrobinson.com,
                                          anthony.w.carter@us.pwcglobal.com, TBATCH32@aol.com,
                                          waynebrown@datasuppliesinc.com, zturnage@amsouth.com
                                          cc:
                                          Subject:     Fwd: Groom killed by breasts!!!!!!!

Here's some news you can use.

>From: Michael_Davis@sessions.senate.gov (Michael Davis)
>To: jdholleman@hotmail.com, d_kay_73@yahoo.com, gipson.w@pg.com,
csimpson@usss.treas.gov, wallen@barw.com
>Subject: Groom killed by breasts!!!!!!!
>Date: Thu, 31 Jan 2002 11:10:47 -0500
>
>
> >you are not going to believe this one from yahoo.com. holy momma -
> >enjoy, gretch
> >if you don't believe me, go to:
> >http://entertainment.yahoo.com/entnews/wwn/20020116/101119320009.html
> >===============================================
> >
> >Latest News & Gossip - Weekly World News All Weekly World News
> >Stories
> >
> >Groom Killed By Stripper's Boobs
> >Wednesday January 16, 2002
> >GENEVA - A fun-filled bachelor party at a strip club turned deadly
> >when a 32-year-old groom-to-be who was enjoying the attentions of a
> >well-endowed stripper suffocated while his face was buried in her
> >breasts.
> >
> >The mind-boggling drama unfolded, say cops, while Daniel Greene was
> >attending his bachelor party at the Pretty Kitty strip club.
> >
> >The club had been rented out for the private affair.
> >
> >According to investigators, Greene was enjoying a lap dance when
> >disaster struck: One of the strippers, Kandy Kane, got too into her
> >performance and suffocated the man between her 72-DD breasts.
> >
> >Witnesses said that Greene had had his fair share of beer, but
> >didn't seem out-of-control.
> >
> >When the song "I'm Too Sexy" began to play, Greene became excited
> >and began to dance on the tabletop, hooting and hollering, pals
> >said, "like an idiot."
> >
> >Miss Kane, apparently pleased to see someone enjoying her choice in
> >music, moved in closer.
> >
> >When Greene took his seat, she began giving him a lap dance, shaking
> >her breasts in his face.
> >
> >The more she shook, the deeper Greene got lost in her cleavage.
> >
> >"Daniel was having so much fun," partygoer John Gillman said.
> >
> >"We all thought he loved being in that gal's chest.
> >
> >"Who could have known that when he was waving his hands around, he
> >was signaling for help?"
> >
> >Cheering onlookers eventually realized that Greene was no longer
> >moving, and pulled him from between Miss Kane's breasts.
> >
> >Now Greene's family is suing Miss Kane and the Pretty Kitty for
> >wrongful death.
> >
> >Greene's father, George, won't specify the amount they are suing
> >for, but claims that it isn't about the money.
> >
> >"Those breasts were lethal weapons," he told reporters.
> >
> >"The Pretty Kitty should not have allowed Miss Kane to have her bust
> >enhanced to the size that she did.
> >
> >"We hope that by filing this lawsuit, we can send a message to other
> >strippers: keep your bra size within a reasonable range."
> >
> >Kandy Kane made a statement through her attorneys: "I thought he
> >liked it in there. "
> >
> >The Pretty Kitty declined comment.

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Atlantic Priorities:
Access/Create North American Terminal Capacity
1) Elba
 -  finalize definitive agreement
 -  negotiate blending solution with El Paso to import higher BTU supplies
2) Bahamas
 -  focus on Florida permitting
 -  shorten completion schedule
 -  resolve downstream transport issues
3) US West Coast
 -  project concept development
 -  consider strategic partnerships and supply sources
Manage/Upgrade Basis positions downstream of Terminals (Elba, Bahamas, West
Coast)
Secure Supply for North America Terminal positions
1) Venezuela
 -  receive Venezuela nat gas export approval (increase lobbying effort using
Lay, US govt, etc)
 -  gain agreement and execute GSA, Shareholders agreement
 -  position asset implementation team for quick release and implementation
2) Purchase LNG from 3rd Party producers
 - Nigeria LNG
 - BG Egypt
 - Trinidad (BP, BG, Repsol)
 - Angola LNG

Pacific Priorities:
DPC resolution
Execute SPA's for utilization/monetization of HG, Excalibur, and Elba
terminal postions during the period of 2002-2005/7
 - Incorporate diversion rights to Far East and Europe
Contract Lakshmi capacity for EGM merchant trade
Conclude Master Agreements:
 -  Kogas (winter cargos for 1-3 year term)
 -  Itochu
 -  Osaka Gas
 -  Pertamina
 -  Adgas (FOB)
Execute Petronas MOU for US West Coast supply
Project Support:
- Mikawa Bay Terminal and other terminal opportunities  (Japan)
- SK/Enron on Posco Terminal (Korea)

Internal Objectives:
utilize the LNG fundamentals group to identify desired directional trade
positions
improve working relationship with ENA gas & EGM crude desks for tighter
pricing
improve shipping position and leverage on newbuild options (if available)
identify additional LNG market bottleneck opportunities
implemet fuel management agreements (Puerto Rico & DPC)
identify potential upstream opportunities (ie partnerships, working interest)
where EGM gains LNG offtake rights


After talking with Cliff the later part of the week of January 28 will work out the best.  Please let me know if this will not work for anyone.

Dale

 -----Original Message-----
From: 	January, Steve
Sent:	Tuesday, January 15, 2002 5:28 PM
To:	Ratliff, Dale; McPherson, Cliff
Cc:	Schoolcraft, Darrell; Spraggins, Gary; Graves, Jerry; Shafer, Allen
Subject:	FW: Verifier Training

Dale, please co-ordinate a meeting with Cliff, yourself, and the others copied on this list as soon as practicle. Allen, can you come to Houston to attend the meeting? I'd like to get this program going right away. thanks. sj

 -----Original Message-----
From: 	McPherson, Cliff
Sent:	Tuesday, January 15, 2002 4:38 PM
To:	January, Steve; Bryant, Mike; Freeman, John
Cc:	Jeffers, Joe
Subject:	Verifier Training

Gentlemen,
In preparation to comply with the Operator Qualification Rule, we need to schedule a training session for your OQ evaluators.  I know that you have reviewed the SBP Verifier Training CBT module, but we think that a better approach for non-SBP personnel would be a live trainer who can present the responsibilities of the evaluator from the perspective of the OQ rule.  The instructor we have in mind has a very good understanding of both the regulatory requirements of OQ and the process of skills evaluation.

I expect this training session to take no more than a day.  Please let me know a couple of dates when this class could be presented to the personnel of your choice.  Once we know how many people and when to schedule classes, we'll contact the instructor.  (Trainer is not available the last week of February and the first week of March)   Please reply within the next week so that we can reserve time on the instructor's schedule.

Call if you have questions or concerns.  (713-345-6857)


Dennis:

You have attached a form of confirmation for a very specialized derivative
transaction, namely, a CREDIT derivative.  The transaction that Enron and So.
Cal. would be executing would be a COMMODITY derivative (that commodity being
power).  The confirmation format is similar.  I will send you an example
later.  Sara

	Dennis De Cuir <dennis@ddecuir.com>
	11/28/2000 08:19 PM

		 To: Sara Shackleton <sara.shackleton@enron.com>
		 cc: Dave Kolk <dkolk@compenergy.com>
		 Subject: CFD Confirmation

Sara,

    Is the attachment the form of confirmation that would be employed for a
Enron/SCWC "contract for differences" transaction? I pulled it from the ISDA
website you mentioned. For Dave's benefit, the site is www.isda.org. Sara,
Dave advises SCWC on energy matters.

-- Dennis

Dennis W. De Cuir
A Law Corporation
2999 Douglas Boulevard, Suite 325
Roseville, California 95661

(916) 788-1022 Telephone
(916) 788-1023 Facsimile
dennis@ddecuir.com Email

This is a privileged and confidential communication.

 - shortconf_matrix.pdf


----- Forwarded by Jeff Dasovich/NA/Enron on 12/01/2000 06:32 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	12/01/2000 05:31 PM

		 To: skean@enron.com, Richard Shapiro/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron, mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON,
Sandra McCubbin/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Alan
Comnes/PDX/ECT@ECT, Mary Hain/HOU/ECT@ECT, Susan J Mara/NA/Enron@ENRON, Mona
L Petrochko/NA/Enron@Enron, Joe Hartsoe/Corp/Enron@ENRON, Sarah
Novosel/Corp/Enron@ENRON, Tim Belden/HOU/ECT@ECT, David Parquet/SF/ECT@ECT,
Robert Badeer/HOU/ECT@ECT, Dennis Benevides/HOU/EES@EES, Neil
Bresnan/HOU/EES@EES, Roger Yang/SFO/EES@EES, Harry Kingerski/NA/Enron@Enron
		 cc:
		 Subject: Governor's Proposals Go Public

In case folks haven't seen them yet, attached are Davis' press release and
the letter he sent to Hoecker today.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 12/01/2000 05:25 PM -----

	"Karen Edson" <kedson@ns.net>
	12/01/2000 03:10 PM

		 To: "Baker Carolyn (E-mail)" <cabaker@duke-energy.com>, "Bill Carlson
(E-mail)" <william_carlson@wastemanagement.com>, "Bill Woods (E-mail)"
<billw@calpine.com>, "Curt Hatton (E-mail)" <curt.hatton@gen.pge.com>,
"Curtis Kebler (E-mail)" <curtis_l_kebler@reliantenergy.com>, "David Keane
(E-mail)" <dnke@dynegy.com>, "David Parquet (E-mail)"
<dparque@ect.enron.com>, "Duane Nelsen (E-mail)" <duanenelsen@msn.com>, "Ed
Tomeo (E-mail)" <ed.tomeo@uaecorp.com>, "Edward Maddox (E-mail)"
<emaddox@seawestwindpower.com>, "Eileen Kock (E-mail)" <eileenk@calpine.com>,
"Ellery Bob (E-mail)" <bellery@spi-ind.com>, "Escalante Bob (E-mail)"
<riobravogm@aol.com>, "Frank DeRosa (E-mail)"
<fderosa@sanfrancisco.usgen.com>, "Greg Blue (E-mail)" <gtbl@dynegy.com>,
"Hap Boyd (E-mail)" <rboyd@enron.com>, "Jack Pigott (E-mail)"
<jackp@calpine.com>, "Jan Smunty-Jones (E-mail)" <smutny@iepa.com>, "Jeff
Dasovich (E-mail)" <jdasovic@enron.com>, "Jim Willey (E-mail)"
<elliottsa@earthlink.net>, "Joe Greco (E-mail)" <joe.greco@uaecorp.com>, "Joe
Ronan (E-mail)" <joer@calpine.com>, "John Stout (E-mail)"
<john_h_stout@reliantenergy.com>, "Jonathan Weisgall (E-mail)"
<jweisgall@aol.com>, "Julee Malinowski-Ball (E-mail)" <jmball@ns.net>, "Katie
Kaplan (E-mail)" <kaplan@iepa.com>, "Kent Fickett (E-mail)"
<kfickett@usgen.com>, "Lynn Lednicky (E-mail)" <lale@dynegy.com>, "Marty
McFadden (E-mail)" <marty_mcfadden@ogden-energy.com>, "Paula Soos (E-mail)"
<paula_soos@ogden-energy.com>, "Robert Lamkin (E-mail)"
<rllamkin@seiworldwide.com>, "Roger Pelote (E-mail)"
<rpelote@energy.twc.com>, "Steve Ponder (E-mail)" <steve_ponder@fpl.com>,
"Steven Kelly (E-mail)" <steven@iepa.com>, "Sue Mara (E-mail)"
<smara@enron.com>, "Tony Wetzel (E-mail)" <twetzel@thermoecotek.com>, "Trond
Aschehoug (E-mail)" <taschehoug@thermoecotek.com>, "William Hall (E-mail)"
<wfhall2@duke-energy.com>, "Baker Carolyn (E-mail)"
<cabaker@duke-energy.com>, "Anne Kelly (E-mail)" <kelly@hnks.com>, "Bev
Hansen (E-mail)" <bhansen@lhom.com>, "Govenar Scott (E-mail)"
<sgovenar@govadv.com>, "Hedy Govenar (E-mail)" <hgovenar@govadv.com>, "Jamie
Parker (E-mail)" <jparker@HMOT.com>, "Jenn Paulsen (E-mail)"
<paulsen@HMOT.com>, "Kassandra Gough (E-mail)" <kgough@calpine.com>, "Marie
Moretti (E-mail)" <marie_moretti@msn.com>, "Maureen O'Haren (E-mail)"
<oharen@HMOT.com>, "Monagan Mike (E-mail)" <mrmonagan@aol.com>, "Paula Soos
(E-mail)" <paula_soos@ogden-energy.com>, "Phil Isenberg (E-mail)"
<isenberg@HMOT.com>, "Pigott Jack (E-mail)" <jackp@calpine.com>, "Richard
Hyde (E-mail)" <rwhyde@duke-energy.com>, "Rob Ross (E-mail)"
<robbiz@cwo.com>, "Roger Pelote (E-mail)" <rpelote@energy.twc.com>, "Ron Tom
(E-mail)" <rtom@govadv.com>, "Rudman Cary (E-mail)" <cjrudman@softcom.net>,
"Sandi McCubbin (E-mail)" <smccubbi@ees.enron.com>, "Stephanie Newell
(E-mail)" <stephanie-newell@reliantenergy.com>, "Susan McCabe (E-mail)"
<sfmccabe@mindspring.com>
		 cc: "Julee Malinowski-Ball (E-mail)" <jmball@ns.net>
		 Subject: Governor's Proposals Go Public

FOR IMMEDIATE RELEASE December 1, 2000
GOVERNOR DAVIS RESPONDS TO FERC WITH INITIATIVES ON ELECTRICITY PRICES,
SUPPLY
SACRAMENTO - Responding to a draft proposal by the Federal Energy Regulatory
Commission (FERC), Governor Gray Davis today announced several initiatives
to ensure reliable and affordable electricity in California.

In a letter to the federal regulators, the Governor outlined a variety of
regulatory and legislative actions to keep the state,s electricity prices at
the lowest reasonable cost. They include innovative measures to encourage
the siting of power plants in compliance with the state,s environmental
laws, restructuring the state,s power-buying agencies to eliminate conflicts
of interests, and promoting energy conservation and voluntary cutbacks by
larger users during periods of high electricity demand.

"If you do your job of protecting consumers by rectifying the wholesale
markets, the steps I have to take can be transitional in nature and limited
in scope," wrote Gov. Davis, who also reiterated his call to FERC to order
retroactive refunds to San Diego and Orange County consumers, and to impose
price caps on the price of wholesale electricity. "I cannot in good
conscience, however, forego any measure that would serve to protect the
people of California until I am satisfied that the sellers in the wholesale
markets will not victimize Californians again."

Governor Davis, who inherited the problems of deregulation as a result of
legislation signed by Governor Pete Wilson in 1996, said that "The free
market applied to electricity can work, but only if market conditions allow
for real competition, and if all parties act responsibly." The Governor
added "Even though FERC had recently concluded that California,s market was
+dysfunctional,, its draft proposal fails to include measures to stop
out-of-state electrical generators from price gouging, and would lead to
higher prices next summer."

The Governor,s proposals include:

Introducing legislation to dramatically change the membership of the ISO and
PX, eliminating members of the board that have what he called "inherent
conflicts of interest" and replacing them with independent members;

Seeking legislation that will allow new approaches - such as emissions
credit trading - to aid in the siting of new power plants;

Calling on the state,s Public Utilities Commission (PUC) to promote
distributed generation and co-generation;

Accelerating voluntary efforts by the private sector as well as state
agencies to reduce their energy use during peak periods;

Expanding "forward contracting" by utilities that would allow multi-year
contracts to reduce price volatility and ensure reliability;

Asking the PUC to expedite its investigation of the state,s electricity
demand reduction programs for commercial users, and adopt new programs to
allow voluntary interruptions that will allow the reduction of electricity
use during peak power periods;

Reviewing new measures to coordinate power-plant maintenance and operating
activities;

Requiring utilities to retain their existing generation facilities instead
of selling them off at least until the market becomes competitive; and

Calling on the PUC and California Energy Commission (CEC) to study providing
"real time price signals" (such as metering) to large energy users to reduce
energy use.

Governor Davis noted that in the decade prior to his administration, no
power plants were built in the state. But since April 1999, six power plants
representing 4,700 MW of new generation have been approved. Twenty more
applications are under review and 11 more are in the pipeline.

"This represents a significant change in policy and performance and responds
to the fact that we must increase supply as rapidly as possible without
abrogating our commitment to state and federal public health and
environmental protection," he said.

The Governor,s initiatives announced today reflects his commitment to FERC
Chairman James Hoecker at a hearing last month in San Diego to provide input
into FERC,s final order on the California electricity market. That decision
could come as early as December 13, 2000.

The Governor will continue to meet with legislative leaders, consumer
groups, and other interested parties to discuss additional options. He said
a more complete plan cannot be developed until FERC,s final order has been
announced and analyzed.


FYI.  Not sure 1) who the right person is to forward this along to, or 2) if
it's something that folks want to follow up on.  Anyway, here's the
dope---Scott is an Enron outside lobbyist located in Sacramento.

Best,
Jeff
----- Forwarded by Jeff Dasovich/NA/Enron on 02/27/2001 11:50 AM -----

	Scott Govenar <sgovenar@govadv.com>
	02/27/2001 10:56 AM

		 To: Jeff Dasovich <jdasovic@enron.com>
		 cc:
		 Subject: Sales

Jeff,

In light of our conversation about ongoing DA sales, the Theater Owners
Association of California would like to talk to someone at Enron about
DA contracts.  The contact is Milton Moritz (President) at (310)
657-7724 or (310) 652-1093, and his conversation with me should be
referenced as I know him personally.

Speak to you soon.

Scott


Pamela:

Please call or email regarding the account assignment.  If you are not the
right person, please forward the request and advise.  We are anxious to have
this executed.  Thank you for your assistance.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 05/24/2001 04:52 PM -----

	Sara Shackleton
	05/22/2001 10:31 AM

		 To: pamela.coleman@gs.com
		 cc: nikki.kroll@gs.com
		 Subject: Transfer and Assignment of Enron North America Corp. ("ENA")
accounts to Enron Credit Inc. ("ECI")

Pamela:

I am also sending you the attached message which I just sent to Nikki Kroll.
Thanks.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 05/22/2001 10:30 AM -----

	Sara Shackleton
	05/22/2001 10:27 AM

		 To: nikki.kroll@gs.com
		 cc:
		 Subject: Transfer and Assignment of Enron North America Corp. ("ENA")
accounts to Enron Credit Inc. ("ECI")

Nikki:

I am a lawyer with ENA.  I understand that you have been involved with the
execution of the Goldman Sachs & Co. ("GSC")/ECI Corporate Account Agreement,
working with both Cheryl Nelson and Stephanie Panus of ENA.

ENA would like to transfer several accounts to ECI.  In connection therewith,
I am attaching a form of Assignment and Assumption Agreement for that
purpose.  This document is based upon a similar agreement executed by GSC,
ENA and ECT Investments, Inc. on January 22, 2001.

I ask that you please advise me of the following:

(1)  What is the effective date of the Corporate Account Agreement between
ECI and GSC?  Has it been executed by GSC?

(2)  Is the attached form of assignment acceptable?

(3)  Is there anybody else with GSC that needs to be involved with the
review/execution of the attached assignment?

Please let me hear from you.  Our commercial group is extremely anxious to
effectuate the transfer.  Thank you for your assistance.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Folks:
Before filing comments on Bilas' proposal to modify our settlement with SoCal and vote it out on the 25th, I wanted to get a sense of how folks feel about it generally.  Hope all is well.

Best,
Jeff


That seems reasonable to me!  Ask the Swap Paralegals, no matter what the
problem is, my answer is "well, you know what that means..." and they all
respond "we can go home!".  If they only made me boss...


You are so sweet!!!!  Thank you.

 -----Original Message-----
From: 	"Valada Brawner" <VBrawne@nicor.com>@ENRON
Sent:	Wednesday, November 07, 2001 10:48 AM
To:	pmims@enron.com
Subject:	Security

You With your knowledge, experience, and all those who know you, you would never have to worry about finding another job.  You might have to leave TEX.  But, mirant and elpaso is growing, just as well as AEP and Aquila.  There are a lot of rainbows on you side.  :)  By no means should you ever be worried.


I think the presentation looks fine, but consider adding this:  there is real
risk to utilities (as well as customers) in continuing a regulated regime.
The California utilities have been pushed into or to the brink of bankruptcy


----- Forwarded by Steven J Kean/NA/Enron on 02/28/2001 02:40 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	02/23/2001 06:16 PM

		 To: Alan Comnes/PDX/ECT@ECT, Angela Schwarz/HOU/EES@EES, Beverly
Aden/HOU/EES@EES, Bill Votaw/HOU/EES@EES, Brenda Barreda/HOU/EES@EES, Carol
Moffett/HOU/EES@EES, Cathy Corbin/HOU/EES@EES, Chris H Foster/HOU/ECT@ECT,
Christina Liscano/HOU/EES@EES, Christopher F Calger/PDX/ECT@ECT, Craig H
Sutter/HOU/EES@EES, Dan Leff/HOU/EES@EES, Debora Whitehead/HOU/EES@EES,
Dennis Benevides/HOU/EES@EES, Don Black/HOU/EES@EES, Dorothy
Youngblood/HOU/ECT@ECT, Douglas Huth/HOU/EES@EES, Edward
Sacks/Corp/Enron@ENRON, Eric Melvin/HOU/EES@EES, Erika Dupre/HOU/EES@EES,
Evan Hughes/HOU/EES@EES, Fran Deltoro/HOU/EES@EES, Frank W
Vickers/HOU/ECT@ECT, Gayle W Muench/HOU/EES@EES, Ginger
Dernehl/NA/Enron@ENRON, Gordon Savage/HOU/EES@EES, Harold G
Buchanan/HOU/EES@EES, Harry Kingerski/NA/Enron@ENRON, Iris Waser/HOU/EES@EES,
James D Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, James
Wright/Western Region/The Bentley Company@Exchange, Jeff Messina/HOU/EES@EES,
Jeremy Blachman/HOU/EES@EES, Jess Hewitt/HOU/EES@EES, Joe
Hartsoe/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Kathy
Bass/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES, Ken Gustafson/HOU/EES@EES, Kevin
Hughes/HOU/EES@EES, Leasa Lopez/HOU/EES@EES, Leticia Botello/HOU/EES@EES,
Mark S Muller/HOU/EES@EES, Marsha Suggs/HOU/EES@EES, Marty Sunde/HOU/EES@EES,
Meredith M Eggleston/HOU/EES@EES, Michael Etringer/HOU/ECT@ECT, Michael
Mann/HOU/EES@EES, Michelle D Cisneros/HOU/ECT@ECT, mpalmer@enron.com, Neil
Bresnan/HOU/EES@EES, Neil Hong/HOU/EES@EES, Paul Kaufman/PDX/ECT@ECT, Paula
Warren/HOU/EES@EES, Richard L Zdunkewicz/HOU/EES@EES, Richard
Leibert/HOU/EES@EES, Richard Shapiro/NA/Enron@ENRON, Rita
Hennessy/NA/Enron@ENRON, Robert Badeer/HOU/ECT@ECT, Roger Yang/SFO/EES@EES,
Rosalinda Tijerina/HOU/EES@EES, Sandra McCubbin/NA/Enron@ENRON, Sarah
Novosel/Corp/Enron@ENRON, Scott Gahn/HOU/EES@EES, Scott Stoness/HOU/EES@EES,
Sharon Dick/HOU/EES@EES, skean@enron.com, Susan J Mara/NA/Enron@ENRON, Tanya
Leslie/HOU/EES@EES, Tasha Lair/HOU/EES@EES, Ted Murphy/HOU/ECT@ECT, Terri
Greenlee/NA/Enron@ENRON, Tim Belden/HOU/ECT@ECT, Tony Spruiell/HOU/EES@EES,
Vicki Sharp/HOU/EES@EES, Vladimir Gorny/HOU/ECT@ECT, Wanda Curry/HOU/EES@EES,
William S Bradford/HOU/ECT@ECT, Kathryn Corbally/Corp/Enron@ENRON, Jubran
Whalan/HOU/EES@EES, triley@enron.com, Richard B Sanders/HOU/ECT@ECT, Robert C
Williams/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg Wolfe/HOU/ECT@ECT, James
Wright/Western Region/The Bentley Company@Exchange, Dirk vanUlden/Western
Region/The Bentley Company@Exchange, Steve Walker/SFO/EES@EES, Jennifer
Rudolph/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Douglas
Condon/SFO/EES@EES, wgang@enron.com, Scott Govenar <sgovenar@govadv.com>,
Hedy Govenar <hgovenar@mail.acom2.com> @ ENRON, jklauber@llgm.com
		 cc:
		 Subject: Legislative Status Report Week Ending 2/23

----- Forwarded by Jeff Dasovich/NA/Enron on 02/23/2001 06:15 PM -----

	"Julee Malinowski-Ball" <jmball@ns.net>
	02/23/2001 05:59 PM
	Please respond to "Julee Malinowski-Ball"

		 To: "Jan Smutny Jones" <smutny@iepa.com>, "Steven Kelley" <steven@iepa.com>,
"Katie Kaplan" <kaplan@iepa.com>
		 cc: "William Hall" <wfhall2@duke-energy.com>, "Tony Wetzel"
<twetzel@thermoecotek.com>, "Sue Mara" <smara@enron.com>, "Steven Kelley"
<steven@iepa.com>, "Steve Ponder" <steve_ponder@fpl.com>, "Steve Iliff"
<siliff@riobravo-gm.com>, "Stephanie Newell"
<stephanie-newell@reliantenergy.com>, "Ross Ain" <rain@caithnessenergy.com>,
"Roger Pelote" <roger.pelote@williams.com>, "Robert Lamkin"
<rllamkin@seiworldwide.com>, "Richard Hyde" <rwhyde@duke-energy.com>, "Randy
Hickok" <rjhickok@duke-energy.com>, "Paula Soos"
<paula_soos@ogden-energy.com>, "Nam Nguyen" <nam.nguyen@powersrc.com>, "Marty
McFadden" <marty_mcfadden@ogden-energy.com>, "Lynn Lednicky"
<lale@dynegy.com>, "Larrea, John" <John.g.Larrea@williams.com>, "kent
Palmerton" <kent.palmerton@williams.com>, "Ken Hoffman"
<khoffman@caithnessenergy.com>, "Kate Castillo" <ccastillo@riobravo-gm.com>,
"Kassandra Gough" <kgough@calpine.com>, "Jonathan Weisgall"
<jweisgall@aol.com>, "John Stout" <john_h_stout@reliantenergy.com>, "Joe
Ronan" <joer@calpine.com>, "Jim Willey" <elliottsa@earthlink.net>, "Jeff
Dasovich" <Jeff.Dasovich@enron.com>, "Jack Pigott" <jackp@calpine.com>, "Jack
Hawks" <jack.hawks@gen.pge.com>, "Hap Boyd" <rboyd@enron.com>, "Greg Blue"
<gtbl@dynegy.com>, "Frank DeRosa" <fderosa@sanfrancisco.usgen.com>, "Eric
Eisenman" <eric.eisenman@gen.pge.com>, "Eileen Koch" <eileenk@calpine.com>,
"Ed Tomeo" <ed.tomeo@uaecorp.com>, "Duane Nelson" <dnelsen@msn.com>, "Doug
Fernley" <fernley.doug@epenergy.com>, "Dean Gosselin"
<dean_gosselin@fpl.com>, "David Parquet" <dparque@ect.enron.com>, "Curtis
Kebler" <curtis_l_kebler@reliantenergy.com>, "Curt Hatton"
<Curt.Hatton@gen.pge.com>, "Craig Chancellor" <craigc@calpine.com>, "Cody
Carter" <cody.carter@williams.com>, "Carolyn Baker"
<cabaker@duke-energy.com>, "Bob Gates" <bob.gates@enron.com>, "Bob Escalante"
<rescalante@riobravo-gm.com>, "Bob Ellery" <bellery@spi-ind.com>, "Bill
Woods" <billw@calpine.com>, "Bill Carlson"
<william_carlson@wastemanagement.com>, "Joe Greco"
<jgreco@caithnessenergy.com>, "Theo Pathos" <theo@ppallc.com>, "Chuck Cole"
<ccole@advocation-inc.com>, "Anne Kelly" <kelly@hnks.com>, "Bev Hansen"
<bhansen@lhom.com>, "Cary Rudman" <cjrudman@softcom.net>, "Delany Hunter"
<dhunter@smithandkempton.com>, "DJ Smith" <djsmith@smithandkempton.com>,
"Hedy Govenar" <hgovenar@govadv.com>, "Jamie Parker" <jparker@hmot.com>,
"Marie Moretti" <mmoretti@mccabeandcompany.net>, "Maureen OHaren"
<Oharen@HMOT.com>, "Mike Monagan" <mrmonagan@aol.com>, "Phil Isenberg"
<Isenberg@HMOT.com>, "Robert Ross" <robbiz@cwo.com>, "Ron Tom"
<thackbarth@govadv.com>, "Scott Govenar" <sgovenar@govadv.com>, "Susan
McCabe" <smccabe@mccabeandcompany.net>, "Andy Brown" <ABB@eslawfirm.com>,
"Chris Ellison" <CTE@eslawfirm.com>, "Doug Kerner" <runwithmee@aol.com>,
"Dave Modisette" <dmodis@ns.net>
		 Subject: Legislative Status Report Week Ending 2/23

Date: 2/23/01
To: Jan Smutny-Jones, Steven Kelly, Katie Kaplan
Cc: IEP Board of Directors
From: Julee Malinowski-Ball, Edson + Modisette
RE: Legislative Status Report Week Ending 2/23

RECENT EVENTS:

-- The week started off on a very positive note.  Monday was a holiday!
Tuesday, however, inevitably came along to spoil all the fun with last
minute committee hearing announcements for some significant bills.

-- SB 39x (Speier) was heard this week in the Senate Energy Committee.  This
measure would define owners or operators of any electric generating facility
as a public utility subject to the state,s jurisdiction.  The bill also
places the CPUC in the role of determining scheduled maintenance outages for
generation units.  Although the bill goes much further, the author,s only
intention is to give the CPUC a role in coordinating power plant outages,
but seems to not understand the implications of doing it in the manner
outlined in the bill.  IEP opposed the bill and testified to that end along
with CMTA, the State Chamber of Commerce, Enron, WSPA, and the California
Cogeneration Council.  The usual cast of consumer groups supported the bill.
Of particular note during the hearing was the hostility shown to the
opposition by the Chair of the Committee, Senator Bowen.  The message from
the opposition clearly was ignored by the majority of the members as it
passed out of the committee on a party-line vote.  IEP is currently
reassessing its strategy on this particular issue because this is not the
only bill that proposes similar changes.

-- The Assembly Natural Resources Committee, chaired by Asm. Howard Wayne,
was scheduled this week to hear two siting bills.  The first was AB 34x (La
Suer), which would make various changes to the CEC siting process, including
some IEP-sponsored language.  IEP has a support if amended position on the
bill which has some technical and policy problems, but workable.  Last
minute amendments offered by Asm. Keeley forced Asm. La Suer to postpone a
hearing on the bill until next Monday (2/26).  However, because the Keeley
amendments basically gut the current language and turn it into a study bill,
La Suer is unlikely to accept them and, according to the negative committee
analysis, the committee is unlikely to approve the measure in its current
form.

AB 36x (Wright), on the other hand, passed the Natural Resources committee
with only one &no8 vote.  AB 36x would provide expedited siting for a
repower project, as defined.  However, despite IEP,s efforts to get the bill
amended, the current language would help few, if any, repower projects.  The
author has agreed to continue working with us, the environmental community
and the CEC to develop language that works for everyone.  IEP,s major issue
at this point is that is should actually work.  The measure was double
referred to the Assembly Energy Costs and Availability Committee and will be
heard there next.

-- The negotiated language on the QF issue finally has a vehicle, SB 47x
(Battin).  All stakeholders are not united in their complete support for the
measure.  IEP has may need some additional changes but will be mobilizing
members on Monday to educate Senators on the bill and support the measure in
the Senate Energy Committee when it is scheduled for a hearing.  Both SCE
and WSPA also have some outstanding issues, but only WSPA so far will be
opposing the bill.

-- SB 6x (Burton), which would establish and state power and financing
authority, passed off the Senate Floor 24 to 14 this week and is headed to
the Assembly Energy Costs and Availability Committee next. IEP met with
Senator Burton,s staff this week to talk about amendments to SB 6x relating
to limiting the Authority,s eminent domain powers.  Staff was open to what
we had to say but we have little confidence our recommendations will move
forward with the bill.  Regardless, IEP will continue to push for amendments
on the Assembly side.

-- SB 33x (Burton), which would require the Governor,s plan to purchase the
IOU,s transmission to be approved first by the Legislature, is still
awaiting consideration on the Senate floor.

-- The Governor had another press conference today to provide a status on
the negotiations between the state and the three IOUs regarding the purchase
of the utilities, transmission system.  Reuters is saying there the Governor
has a deal with SCE to purchase its share of the power grid for $2.76
billion.  Negotiations are still going on with PG&E and SDG&E.  More
information on press conference can be found on the Governor,s web site.

--  Attached is the most recent legislative tracking report which includes
all the special session bills introduced through yesterday.  Please let me
know if you need copies of any of these bills.

UPCOMING EVENTS:

MONDAY, February 26th
Assembly Natural Resources Committee
1:45 pm, Room 447.
AB 34x (La Suer) ) makes various changes to the siting process.

Assembly Energy Costs and Availability Committee
1:30 pm, Room 4202.
AB 38x (Jackson) ) relates to loan guarantees for renewable energy joint
venture agreements.

Senate Environmental Quality Committee
1:30 pm, Room 4203.
SB 28x (Sher/Battin) ) makes various changes to the siting process.

WEDNESDAY, February 28th
Assembly Revenue and Taxation Committee
1:30 pm, Room 126
AB 45x (Kelley) ) expands the MIC for certain energy production.

--end--

Julee Malinowski-Ball
Senior Associate
Edson + Modisette
916-552-7070
FAX-552-7075
jmball@ns.net

 - 2001 Tracking Report.doc


For our argument that the market is responding to expected new supplies.

----- Forwarded by Linda Robertson/NA/Enron on 06/15/2001 03:51 PM -----

	Jeffrey Oh/ENRON@enronXgate
	06/15/2001 03:11 PM

		 To: Linda Robertson/NA/Enron@ENRON
		 cc:
		 Subject: New Gen Report

Jeffrey Oh
Enron North America   503.464.7789
West Power Desk    503.708.1760 (c)
121 SW Salmon Street 3WTC0306  503.464.3740 (fax)
Portland, Oregon 97204   jeffrey.oh@enron.com


Just a heads-up:

	Today at 1:30 there will be a joint defense conference call to discuss the thoughts of the group on what pleadings to file on or before December 5, the new deadline for defendants to move, answer or otherwise plead.  I believe that I previously e-mailed to you drafts prepared by F&J for El Paso and circulated to the group.  Each of the defendant groups is planning to prepare and file its own pleas to the jurisdiction, answers, and affirmative defenses.  I will prepare and circulate drafts tailored to the only two Enron defendants yet served, Enron Corp. and Intratex.  By copy of this, I am asking Becky Stephens to again confirm that we have no evidence that Enron Gas Marketing, Inc. has been served.

	A strategy issue under consideration is whether to file motions to transfer venue for the holding companies, like Enron Corp. So far, based on the due diligence I have done to date, it does not appear that Enron Corp. ever owned or operated any facilities in Zapata County (much less measured gas there) or owned any gas reserves or gas in storage, which should be the relevant considerations. I was asked by the joint defense group to do some legal research on this issue, given that Grynberg has made "in concert" allegations against all the defendants, and that we expect Grynberg to rely on venue being good against EOG Resources and trying to keep the remaining defendants (those who are not measurers and therefor independently subject to venue) based on section 15.005 of the Texas Civil Practice and Remedies Code, which allows venue against co-defendants in situations like this where the allegations concern the same transaction or occurrence or series of transactions or occurences.

	In short, the caselaw I have seen causes me a concern we may open ourselves up to merits discovery on the "in concert" allegations by filing a motion to transfer venue on behalf of the holdling companies.  I have already mentioned that to other defense counsel and expect that issue to be discussed at our telephone conference this afternoon.

	Also, please let me know whether you want me to send any of the proposed pleadings to Barrett Reasoner or Charlie Tetrault, or to discuss our strategy Barrett or Charlie, to coordinate with strategy in the Grynberg and Quinque cases.

	Parenthetically, our due diligence investigation of Intratex has revealed an accounting document which appears to list an Intratex facility in Zapata County.  This makes no sense and is very puzzling to those we have interviewed at Enron about it.  We will be meeting later this week with AEP employees who will hopefully be able to shed some light on this.

	I will keep you advised.

	Britt


Rhonda,
These corrections have been made.  Sorry for the dealy in my reply--i was out
of town.

Rhonda L Denton@ECT
05/18/2001 04:13 PM
To: Christopher Watts/NA/Enron@Enron
cc:

Subject: Re: Enpower counterparties

There are several deals entered under NRG Energy, Inc.  This is not a
physical CP  Can you please give this list to your new people and tell them
to select the physical counterparties on the list.

Please change these deals to NRG Power Marketing Inc.
602930
606876
609311
609398
614783

NRG Energy Inc is for financial deals.
---------------------- Forwarded by Rhonda L Denton/HOU/ECT on 05/18/2001
04:06 PM ---------------------------

Rhonda L Denton
05/04/2001 10:35 AM
To: Christopher Watts/NA/Enron@ENRON
cc: Juan Hernandez/Corp/Enron@ENRON, Don Baughman/HOU/ECT@ECT
Subject: Re: Enpower counterparties

The list I have is years old.  Fortunately, the names in Deal Entry and Deal
Blotter are alphabetical so you do not need to know the codes.  The power
short codes are not consistent with the NERC codes so this would probably not
help you.  Attached is a list of CPs with whom we deal.

	From:  Christopher Watts @ ENRON                           05/04/2001 04:46 AM

To: Rhonda L Denton/HOU/ECT@ECT
cc: Juan Hernandez/Corp/Enron@ENRON, Don Baughman/HOU/ECT@ECT
Subject: Enpower counterparties

Dean Laurent mentioned that you had a list of all counterparties with their
corresponding Enpower acronym.  Please forward this list so that we on the
hourly power desk can be sure to enter deals correctly in Enpower.  Thanks.


Will do right now.

-----Original Message-----
From: Benjamin.Rogers@enron.com [mailto:Benjamin.Rogers@enron.com]
Sent: Thursday, December 07, 2000 4:04 PM
To: mcyrus@cinergy.com
Subject:

Michael:
Just wanted to let you know that I just talked to Don Miller, the lead guy
from our side, regarding a different matter, but he mentioned to me that
things seemed to be not going so well in the PSA discussions.  I didn't
have time to see what the issues were, but I will when he calls back.  As
you already know, these assets are yours to lose and I would hate to see
you guys lose these assets to legal issues.  I know we both can come to
some middle ground before people lose their patience.  My only advice, for
what its worth, is to keep talking with Delainey and to make sure the
lawyers don't run away with the issues and forget whats at stake on the
commercial side.  Hope this helps.
Ben


Cary,

Here is the picture of the house I have in mind.  I was going for a simple
farmhouse style to  place on 5 acres near Wimberley.

A few points that might not be obvious from the plans are:

There will be a double porch across the back just like the front
No dormers (Metal roof)
1/2 bath under stairs
Overall dimensions are 55 by 40

What I am looking for is a little design help in the kitchen.  More cabinets,
maybe a different shaped island, and a way to enlarge the pantry.    Reagan
suggested that I find a way to make the exterior more attractive.  I want to
keep a simple roof line to avoid leaks, but I was thinking about bringing the
left
side forward in the front of the house and place 1 gable in the front.  That
might look good if the exterior was stone and stucco.  Also the front porch
would
be smaller.

I have 3 bids from builders all around $325,000.  I am ready to go ahead and
have the plans done so I can spec out all the finishings and choose a builder.
I just wanted to give you the opportunity to do the work.  As I mentioned my
alternative is $0.60/ft.  I thought that since I had a such a detailed
sketch, you might consider the job for less than the $6,000 that Reagan
allowed.

Phillip Allen
713-853-7041

---------------------- Forwarded by Phillip K Allen/HOU/ECT on 03/29/2001
09:10 AM ---------------------------

Hunter S Shively
03/26/2001 10:01 AM
To: phillip.k.allen@enron.com
cc:
Subject:


Given the nature of the questions I agree verbal is the way to go.  I'll try
and arrange. Is tomorrow ok?

Laine A Powell@ENRON_DEVELOPMENT
02/20/2001 08:13 AM
To: Rob G Gay/NA/Enron@Enron
cc: John Guidry/NA/Enron@Enron, Christiaan
Huizer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard Vincent@ENRON

Subject: Questions re: Siemens Negotiations

Rob -

 Recommend a call to discuss these issues with Brad.  A written response will
probably put us in a letter "do" loop.

rgds

Laine

---------------------- Forwarded by Laine A Powell/ENRON_DEVELOPMENT on
02/20/2001 05:46 AM ---------------------------

Rob G Gay@ENRON
02/14/2001 05:50 PM
To: Laine A Powell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James
Guidry/GCO/Enron@ENRON, Christiaan
Huizer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard Vincent/NA/Enron@Enron
cc:

Subject: Questions re: Siemens Negotiations

We will need to craft a response
---------------------- Forwarded by Rob G Gay/NA/Enron on 02/14/2001 09:20 AM
---------------------------

Bradley.Barta@swec.com on 02/14/2001 09:43:16 AM
To: Rob.G.Gay@enron.com
cc: susan.garven@stoneweb.com, frank.kluesener@kfw.de, Bboeh@opic.gov

Subject: Questions re: Siemens Negotiations

Rob - We've reviewed your memo which sets forth general points of your
negotiations with Siemens.  Following are comments and questions regarding
certain negotiated points:

EOT Claim Agreement

Owner must operate and maintain per O&M manuals and industry practices on oil;
if not, owner must correct items materially affecting Contractor's
commissioning
obligations

We observe that while this point places reasonable responsibility on the Owner
to correct problems that were a result of their commercial operations, it is
introduces an opportunity for the Contractor to place unfounded blame on the
owner for affecting the Contractor's ability to commission.

Risk of Loss remains with owner during commissioning on gas

We understand that the Facility is under the care, custody and control of the
Owner and that the Facility is currently operating under the insurance
coverage
intended for the commercial operating period (versus the construction period).
Please confirm that there is no reason to be concerned about insurance
coverage
if a problem arises resulting in material damage attributable to Contractor
action during commissioning on gas.  We are also advising the Lenders to have
this point reviewed by an insurance advisor.

Degradation - agree to use curves with credit to owner for degradation during
commissioning

During our last conference call it was indicated that the first choice was to
test to determine degradation and the alternative was to agree on a set of
curves.  It appears that Siemens was unwilling to agree to the test approach.
We observe that the curves used to determine owner credit may be biased to the
benefit of Siemens.  We trust that your operations experts will diligently
review the basis for the curves.

Performance LD's on gas per the EPC contract with first $4,000,000 forgiven by
owner

Please explain the rationale behind forgiving $4 million of Contractor LDs.

Delay LD's on gas do not start until 60 days after performance test on gas

During our last conference call it was indicated that there would be a stand
down until 7/1/01 when gas is available, no LDs would be paid related to oil
firing performance, and that the LD clock would start if gas commissioning is
not complete within 60 days.  We do not understand the above negotiated point.
Please confirm that our understanding is correct or clarify your negotiated
point.

TAA Agreement

No 12-month look back.

We assume that this negotiated point is related to the time period factored
into
the availability calculation for purposes of determining whether or not an
extension or additional work by the Contractor has been triggered as a result
of
dropping below the availability standards.  Please explain how this negotiated
point affects the mechanics of the TAA and also please explain how
availability
will be calculated.  As we noted during our last conference call, we are
concerned that Siemens believes that the availability value is not reduced if
maintenance work is being performed during periods when the Facility is not
being dispatched.

12 month Initial Guarantee Period, with the clock suspended for gas
commissioning unless owner delay.

We interpret the above negotiated point to mean that the 12-month clock for
the
initial guarantee period stops during commissioning regardless of how long it
takes the Contractor to commission on gas (unless delays are attributable to
Owner) and re-starts after Contractor has successfully completed the
performance
testing on gas.  Please confirm that our understanding is correct.

In order to provide the lenders an adequate warranty period on gas (if
there are additional delays on the P/L) our Insurance group has  indicated
that we will have no problem obtaining 12 months renewable business
interruption insurance when we go operational on gas.  This should solve
the issue over the revised warranty with Siemens because it covers defects,
design, and workmanship on the turbines and includes lost profits, etc.
Incidentally, for insurance purposes the turbines are designated DE3 which
is not a new technology designation.   The duration of BI coverage is 18
months per event with US$150,000 deductible.

Stone & Webster is advising the Lenders to have an insurance advisor review
this
point.

Thanks in advance for your response.  Hope all is well.

Regards,

Bradley


---------------------- Forwarded by Jim Schwieger/HOU/ECT on 04/09/2001 11:33 AM ---------------------------
From:	Michael J Legler@ENRON on 04/09/2001 09:57 AM MDT
Sent by:	Michael J Legler@ENRON
To:	jesse_blackwell@ibi.com, lilybar44@hotmail.com, klexplore@aol.com, Julie A Gomez/HOU/ECT@ECT, Jim Schwieger/HOU/ECT@ECT, hickspostar@door.net, milt.brownfield@advancedergonomics.com, tbethel@win2000.com, Scott Hendrickson/HOU/ECT@ECT
cc:
Subject:	Fw: re

>
>
> THE TRUTH ABOUT DRINKING BEER
>
> ...the "smartest" thing Cliff EVER said on Cheers! One afternoon at
> Cheers,
> Cliff Clavin was explaining the buffalo Theory to his buddy Norm. And
> here's
> how it went:
>
> "Well ya see Norm, it's like this....A herd of buffalo can only move as
> fast
> as the slowest buffalo. And when the herd is hunted, it is the slowest
> and
> weakest ones at the back that are killed first. This natural selection
> is
> good for the herd as a whole, because the general speed and health of
> the
> whole group keeps improving by the regular killing of the weakest
> members.
> In much the same way, the human brain can only operate as fast as the
> slowest brain cells. Excessive intake of alcohol, as we all know, kills
> brain cells, but naturally it attacks the slowest and weakest brain
> cells
> first. In this way, regular consumption of beer eliminates the weaker
> brain
> cells, making the brain a faster and more efficient machine. That's why
> you
> always feel smarter after a few beers."
>
>
>