Over the past few weeks we have held several "Breakfast Club" meetings to update members of the Program and business units leaders on the results of the recent Program Survey, to discuss several initiatives we have underway, and to provide an opportunity for Q&A.

I want to invite any of you who may not have been able to attend one of these four meetings, to a final meeting on Tuesday, October 30.  The meeting will be held in EB 5C2, and will run from 7:30 to 8:30 am.  A continental breakfast will be provided.

Because space in this room is limited, please rsvp to my assistant Maxine Levingston by 12:00 noon on Monday, October 29.  Maxine can be reached by email at Maxine.E.Levingston@ENRON.com <mailto:Maxine.E.Levingston@ENRON.com> <<mailto:Maxine.E.Levingston@ENRON.com>>.

Best regards,
Billy Lemmons
Vice President, Associate / Analyst Program


Please see attached.

 -----Original Message-----
From: 	Lavorato, John
Sent:	Wednesday, May 16, 2001 12:24
To:	Slone, Jeanie
Subject:

Can I get that PRC list from you when its on one page.


I have a question about the ISDA Schedule and several comments to the form of
confirmation.  To whom should I be speaking?  SS


Jere, please forward the list of targets. Let me speak initially with John -
lets try and get this done today.  I appreciate the effort on the peakers.
As well, I would suggest we start discussions with  Reeding & Bates which
according to both Redmond and Thompson is a live deal.

Thanks
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 05/17/2000
08:35 AM ---------------------------

Jere C Overdyke
05/17/2000 07:48 AM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Re: Producer Insurance Targets

I was out of town last week on vacation.  The peaker project is moving
ahead.  George Carrick and John met last week regarding upstream activities.
No final resolution. I have a voice mail in to John and will get things
worked out this week.  The most important issue is to get into market place
and test product with another transaction.

Jere


fine!

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 26, 2001 2:04 PM
To:	Nelson, Michelle
Subject:	RE:

no i never do, and is that a yes

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 26, 2001 1:53 PM
To:	Maggi, Mike
Subject:	RE:

mmmm we'll see.  and you do get your way a lot


We are pleased to announce the creation of a new group - Asset Marketing -
within Enron Americas. The Asset Marketing group will have responsibility for
the asset divestment function within Enron Americas and work with Generation
Investments on selected portfolio acquisitions as well as managing power
origination funding requirements with Treasury.

Don Miller will head the Asset Marketing group and will report directly to
the Office of the Chair, Enron Americas. Joining Don's group will be Stuart
Zisman.  Stuart was formerly in ENA Legal, having most recently worked on the
sale of ENA's peaker plants with Don.

Please join us in congratulating Don and Stuart in their new roles.


Dear Eric Bass,

This holiday season, 1-800-FLOWERS.COM would like to extend a special holiday
offer to you for being a valued customer.  This offer is only available for a
limited time only, so please act now!

Click here to view catalog:
http://www.s2u2.com/content.asp?wci=version&wnd=0&status_id=23274514

Happy Holidays,
Your Friends at 1-800-FLOWERS.COM


Your Career Matters: Energy Concerns Find M.B.A.s Are Hot Commodity
The Wall Street Journal, 04/03/01

'Raise It While You Can'; Talk of New Curbs Whets Funds Frenzy
The Washington Post, 04/03/01

FPL, Entergy Blame Each Other As They Call Off $8 Billion Merger
The Wall Street Journal, 04/03/01

Enron Starts Trading German Gas Online
Dow Jones Energy Service, 04/03/01

PGE wants to convert manure to methane
Associated Press Newswires, 04/03/01

SHARE OWNERSHIP CAP TO BE LIFTED ON AUSTRALIAN GAS LIGHT LTD STOCK
Asia Pulse, 04/03/01

SMARTMONEY.COM: Is It Time To Sell Energy?
Dow Jones News Service, 04/02/01

Your Career Matters: Energy Concerns Find M.B.A.s Are Hot Commodity
By Kemba J. Dunham
Staff Reporter of The Wall Street Journal

04/03/2001
The Wall Street Journal
B1
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Elena Robciuc says she wasn't specifically looking for a position at an
energy company when she began her job hunt last fall. But after weighing all
her options, the 25-year-old M.B.A. candidate turned down two offers from
investment banks to accept a job at Enron Corp. as an associate for a base
salary of nearly $80,000.
"At Enron, I'll be able to formulate its strategic direction," says Ms.
Robciuc, a native of Romania who will graduate from Southern Methodist
University's Cox School of Business in May. "It's much more of a hands-on
involvement than what I'd experience at an investment bank."
Watch out, Merrill Lynch. Energy companies are starting to recruit
masters-of-business-administration candidates with a vengeance, offering
them, if not top dollar, at least the chance to advance in a changing,
challenging field. Deregulation has allowed energy companies to expand into
such areas as technology, broadband and financial services -- creating a big
demand for leadership.
"Because of deregulation in our industry, there's a strong need for people
with financial acumen and real expertise in quantitative methods," says Paul
Duran, former staffing and diversity manager at TXU Corp., a Dallas energy
concern, who helped get the company's new M.B.A. Associate program off the
ground. After recruiting at business schools such as the University of
Chicago, UCLA and Tulane University, the company made job offers to 17
M.B.A.s last fall and so far has received eight acceptances.
Phillips Petroleum Co., an integrated oil and gas company in Bartlesville,
Okla., also has stepped up its M.B.A. recruitment efforts. Officials visited
the business schools at Rice, Purdue and the University of Texas last fall,
mainly in search of business-development specialists and finance associates.
It hired two M.B.A.s last year and will add at least three more this year.
Another oil giant, BP Amoco, hired six students from Indiana University's
Kelley School of Business in Bloomington last year.
Starting compensation packages range from $88,000 to $110,000 -- lower than
those that investment banks and consulting companies offer new M.B.A. hires,
which can run as high as $145,000. But energy companies are luring M.B.A.s
with growth potential.
"Many [energy companies] have employees who are 50 years old and aren't
equipped with the recent business thinking," says James Smith, a professor of
finance at the Cox School. "So M.B.A.s can become the top dog in these
organizations pretty fast."
It's a possibility that has M.B.A.s excited. Last July, Steven Hartman, a
33-year-old student at the Cox School, re-energized its Energy Club, which
helps students learn about the industry and now has about 40 members. About
half of them took a field trip in January to check out such Houston energy
concerns as El Paso Corp., Enron and Landmark Graphics Corp., a Halliburton
Co. unit.
"The energy industry is no longer tried and true" because of deregulation,
says Mr. Hartman, who will join El Paso as a senior associate in July. "What
makes it appealing to many students is that it's the industry of the great
unknown."
There is another lure as well. "Those of us who are going into energy are
confident that our jobs will be there" after graduation Mr. Hartman says.
Other students are drawn by the lifestyle made possible at energy companies.
Eric Van Stone, a 30-year-old M.B.A. candidate at Rice University's Jones
Graduate School of Management in Houston, turned down a travel-heavy
consulting job at Arthur Andersen for a post at Houston's Reliant Energy Inc.
Another Rice business student, 28-year-old Kenneth Jett, adds that some
energy companies -- many of which are based in sunny Houston -- offer shorter
working hours than many investment banks and consulting companies.
"It's the total lifestyle package that's drawing people to the industry,"
says Mr. Jett, who will join Enron as an associate in August.
M.B.A.s aren't the only students gearing up for a career at an energy
company. The University of Oklahoma's undergraduate energy-management program
has grown from three students in 1997 to more than 65 in 2001. The program --
a mix of finance, geosciences and law classes -- lasts about 4 1/2 years. At
graduation, most students have between two to three energy-related
internships on their resumes with starting salaries ranging from about
$55,000 to more than $65,000.
Energy companies are eager to hire these younger students as well. This year,
all 12 seniors in the program accepted jobs with such energy concerns as
Enron, Duke Energy Corp. and Exxon Mobil Corp. As far as the underclassmen
are concerned, program director Ted Jacobs says that he has "more internships
than I've got students available."
The energy industry has had a mixed record of recruiting at elite business
schools. Exxon Mobil was the only energy company to visit Stanford's Graduate
School of Business last fall -- and only a few people were interested. But
the Wharton School at the University of Pennsylvania says it has seen a
dramatic increase in the number of recruiters -- and a good student turnout
so far. The companies soliciting this year's graduating class include Public
Service Enterprise Group Inc., Reliant Energy, Duke Energy and Enron.
To jazz up their recruiting pitch, energy companies -- normally considered
stodgy -- are showing up with glossy Power Point presentations manned by
sharply dressed executives, some schools say.
Peter Veruki, executive director of career planning and admissions at Rice
University, adds that some of these companies aren't even positioning
themselves as "energy companies," but instead are emphasizing their
technology, broadband, risk-management and trading areas. He says they are
taking this approach because "they don't want to hire traditional energy
people."

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

A Section
'Raise It While You Can'; Talk of New Curbs Whets Funds Frenzy
Mike Allen and Juliet Eilperin
Washington Post Staff Writers

04/03/2001
The Washington Post
FINAL
A01
Copyright 2001, The Washington Post Co. All Rights Reserved

Campaign finance is very much on the minds of House members, and not just
because a Senate bill that would rewrite the rules of the money chase in
federal politics is about to come their way.
It is also because of the $1,000-a-head Cajun cookouts that Rep. W.J. "Billy"
Tauzin (R-La.) is holding today and tomorrow for two fellow House members.
And because of the "Greatest Show on Earth" pre-circus fundraiser that Rep.
Adam Putnam (R-Fla.) is holding Thursday, with an admission price of $1,000
for a political action committee and $250 for an individual.
And because of the Richmond International Raceway fundraiser that Rep. Robin
Hayes (R-N.C.) is holding in June, with a "Hot Laps and Lunch" package for
$1,000 per person, or a "Speed Racer" package for $5,000 for each political
action committee.
While the debate over campaign finance reform has captivated Capitol Hill by
day, lawmakers and political parties are working their donors ever more
aggressively by night. Lobbyists and political aides say this spring's
fundraising pressure is hitting earlier and more furiously than in any
previous election season. They say the frenzy is fed both by the likelihood
that money will be tougher to raise under new rules, and by an election
season in which just a few races could tip party control in the House or
Senate or both.
The activity is especially feverish at the party committees, which are the
conduits for the "soft money" -- the huge, unregulated sums from unions,
corporations and wealthy individuals -- that would be banned under the Senate
bill.
"There clearly is an atmosphere of 'raise it while you can,' " said a
Republican lobbyist who asked not to be named. "It's in the front of the mind
for everybody involved in raising this stuff."
Terry McAuliffe, chairman of the Democratic National Committee, said he has
begun emphasizing smaller hard-money donations, which would remain legal and
are a traditional strength of Republicans. "I'm retooling and reshaping how
our party thinks about fundraising," McAuliffe said from Alameda County,
Calif., where he was speaking at a $10-a-person Democratic dinner.
Such events are the exception. In the same ballroom of the Washington Hilton
hotel last month, House Republicans raised $7 million in one evening and
House Democrats raised $5 million -- nearly double what each had raised at
similar dinners two years before.
Bush and Vice President Cheney, who have stayed away from fundraisers since
the election, are pitching in. Bush is expected next month at a Republican
National Committee fundraiser, and in June at a President's Dinner that will
raise more than $10 million for the GOP's Senate and House campaign
committees. Cheney was the keynote speaker at the House Republican dinner.
Lawmakers, eager to bank soft money, are setting increasingly ambitious
targets for the Washington lobbyists charged with mining the business
community. In a meeting with nearly 20 lobbyists before the House
Republicans' spring gala, Rep. Bill Thomas (R-Calif.) -- who as Ways and
Means Committee chairman oversees the crafting of tax legislation -- asked
that each pledge a specific amount to raise.
According to several participants, the average amount was $100,000. Many of
the lobbyists later entertained a member of Congress at their table. Before
the National Republican Congressional Committee dinner, Thomas sent
colleagues a letter saying, "Your attendance is imperative if we are to
remain successful in our fundraising efforts."
At the House dinners, soft money played a critical role in filling the
parties' coffers. To serve as a "dinner host" at the Republican gala, donors
had to give $100,000. Twenty-four corporations and one individual, Cincinnati
Reds owner Carl Lindner, paid up.
According to Republican fundraisers, the tables requiring $25,000 in soft
money went at a faster clip than those asking for $10,000 in the more
restricted hard money.
House Democrats also relied heavily on large contributions. A spokesman for
the Democratic Congressional Campaign Committee said soft money accounts for
roughly half of the committee's $7.5 million take for the first quarter of
this year.
The party events are growing ever more lavish. At the House GOP dinner, Meat
Loaf was the master of ceremonies, Otis Day and the Knights performed after a
dinner of beef tenderloin and grilled sea bass, and the House committee
chairmen were welcomed to the strains of "The Boys Are Back in Town."
Donors were given a "Philip Morris Shopper's Guide," listing 26 tobacco
products, and little notepads from Enron, the Houston energy conglomerate
that is Bush's largest lifetime patron. Wine was provided by UST Inc., which
owns several wineries and the U.S. Smokeless Tobacco Co.
Party officials also said that with the spiraling costs of campaigns,
politicians have little incentive to eschew large donations at this point.
"We're not dealing in the hypothetical," said NRCC spokesman Carl Forti.
"We're going about our fundraising operations under current law."
While a new law is debated, lawmakers are moving to exploit the last months
of the old one. Less than two months ago, House Minority Leader Richard A.
Gephardt (D-Mo.) became one of the last Hill leaders to establish a
soft-money political action committee. The group's existence was first
reported Monday by the newspaper Roll Call.
"We're fully prepared to fold tent the day campaign finance reform is
passed," said Gephardt's spokeswoman, Laura Nichols.
Much of the current money drive is complicated by the lack of certainty
surrounding future reforms. For instance, Sen. Mitch McConnell (R-Ky.) said
he does not believe soft money would be able to be spent after a campaign
finance law was signed if it were similar to the Senate version.
Party officials said they are unsure of when the law will take effect and
whether they will still be able to use donations already collected. "Those
are very big questions that we don't have the answers for," DCCC Executive
Director Howard Wolfson said.
Party operatives said privately that they are already drawing up contingency
plans to function under a new legal regime.

http://www.washingtonpost.com

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

FPL, Entergy Blame Each Other As They Call Off $8 Billion Merger
By Robin Sidel
Staff Reporter of The Wall Street Journal

04/03/2001
The Wall Street Journal
A4
(Copyright (c) 2001, Dow Jones & Company, Inc.)

FPL Group Inc. and Entergy Corp. pulled the plug on an $8 billion merger that
would have created the largest electric utility in the U.S., and both sides
immediately blamed the other for the eight-month-old deal's failure.
The collapse, which marked the latest in a string of utility mergers to run
into trouble, came just about two weeks after the companies warned of looming
problems with the transaction.
The two companies announced the deal's termination in a joint statement, and
then swiftly traded barbs about the reasons for the breakup by issuing
separate news releases and holding dueling conference calls.
FPL accused Entergy of discrepancies in its financial forecasts and said it
lost faith in Entergy's management. Entergy said the deal was no longer a
merger of equals, citing efforts by FPL to dilute the leadership roles of
Entergy executives in the combined utility.
"The board decided litigating a merger of equals for damages was a long, hard
road and with all the changes taking place in our industry, we just needed to
move on," said Wayne Leonard, chief executive of Entergy.
Billed as a merger of equals when announced at the end of July, the deal
called for FPL shareholders to own 57% of the combined company. Mergers of
equals are hard to define, and Wall Street viewed FPL as the acquirer. FPL,
of Juno Beach, Fla., is the parent of Florida Power & Light. Entergy, of New
Orleans, serves customers in Arkansas, Louisiana, Texas and Mississippi.
The union would have created the largest electric utility in the U.S., with
6.3 million customers and more than 48,000 megawatts of generating capacity.
The deal originally was valued at $7 billion but that climbed to $8 billion
amid an increase in FPL's stock price. FPL also was to assume $6.9 billion in
debt.
It is the second failed deal for FPL, which saw merger discussions with
Spain's Iberdola SA fall apart last year.
By January, the warm feelings between Entergy and FPL had begun to chill, as
FPL challenged 2001 and 2002 financial projections it had received from
Entergy.
FPL contends the earnings projections it received were pumped up by "several
hundred million dollars" compared with Entergy's internal projections.
Entergy defended its methods, saying the company has multiple forecasts based
on various assumptions about business conditions.
By February, FPL had hired high-powered attorney David Boies, who represented
Al Gore in the Florida election controversy and worked for the government in
its antitrust case against software giant Microsoft Corp.
The partnership further disintegrated as executives clashed over management
roles at the combined company. The merger pact called for Mr. Leonard to be
chief executive and FPL Chairman and Chief Executive James Broadhead to be
chairman. The Entergy side says they thought Mr. Broadhead was pushing Mr.
Leonard out. "At that point, it had become a takeover, a hostile takeover,"
Mr. Leonard says.
"FPL did lose trust and confidence in Entergy management," Mr. Boies said.
Both companies waived the $215 million termination fee that was part of the
merger agreement. A fee would be payable, however, if either company enters a
similar transaction with another party within nine months.
Despite the collapse, about eight top FPL executives already have collected
some $60 million from the deal, because they were entitled to cash in
compensation packages when shareholders approved the transaction in December.
That was somewhat unusual, since compensation packages typically can't be
cashed until a merger closes. An FPL spokeswoman noted that more than half of
the amount would have vested within two years regardless of the Entergy
transaction. She also noted that from now on compensation packages won't be
triggered until a transaction is completed.
Entergy executives weren't entitled to receive such so-called golden
parachutes until the FPL deal closed.
Wall Street analysts predicted both companies are likely to find other
partners, since both are considered midsize utilities in a consolidating
industry.
The transaction is the latest utility deal to be stung by volatility in the
nation's power markets and lengthy regulatory reviews.
Consolidated Edison Inc.'s plan to buy Northeast Utilities has fallen apart,
and Enron Corp.'s $2 billion agreement to sell its Portland General Electric
unit to Sierra Pacific Resources is in jeopardy. Also, DTE Energy Co. and MCN
Energy Group Inc. recently were forced to renegotiate terms of their merger.
At 4 p.m. in New York Stock Exchange composite trading, Entergy was unchanged
at $38, while FPL was down nine cents at $61.21.
--- Troubled Electricity Deals

Acquirer: DTE Energy
Target: MCN Energy
Deal: DTE was to purchase MCN for $28.50 a share
Result: Renegotiated the price to $24 a share valuing the transaction
at about $2.24 billion.

Acquirer: Con Edison
Target: Northeast
Deal: Con Edison to purchase Northeast for $3.8 billion
Result: Northeast and Con Edison have sued each other for the merger's
failure.

Acquirer: Sierra Pacific
Target: Enron
Deal: Sierra Pacific to buy Enron's Portland General Electric for $2
billion
Result: Sierra Pacific has had difficulty selling generating assets,
which it had to do to be able to purchase PGE.

Acquirer: FPL
Target: Entergy
Deal: Merger of equals now valued at $8 billion
Result: Agree that if either company closes another comparable deal
within nine months it will have to pay a breakup fee.

Source: WSJ Research

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

Enron Starts Trading German Gas Online

04/03/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

VENICE, Italy -(Dow Jones)- Enron Corp. (ENE) has expanded its online trading
platform to include German gas, vice-president John Thompson said Tuesday.
Enron Online had already quoted border prices for German gas, but is now
quoting for gas within Germany, Thompson told the Power 2001 conference.
The development of gas trading in Germany has been retarded by the lack of
easy network access and by high transportation costs.
-By Geoffrey Smith, Dow Jones Newswires; 44 20 78429260

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

PGE wants to convert manure to methane

04/03/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SALEM, Ore. (AP) - Oregon's energy future may be chewing cud in Bernie
Faber's pasture.
His 500 cows will provide tons of manure to be converted to methane to
generate electricity in a pilot project operated by Portland General Electric.
The project is expected to generate about 100 kilowatts of electricity -
enough for about 65 homes - by July.
"When you consider how many dairy farms there are in Oregon, this could be a
significant source of power," said PGE spokesman Mark Fryburg.
About 89,000 milk cows were reported on state farms in 1999.
PGE wants to perfect the technology at Faber's Cal-Gon Farm. If the company
succeeds, small-scale power plants could become commonplace at Oregon dairy
farms.
"We would love to be able to engineer and design these things so we could do
them at smaller and smaller dairies over time," said Jeff Cole, PGE'; biogas
program manger.
PGE officials also are interested in developing a 4.5 megawatt,
methane-powered energy facility in Morrow County that could provide energy
for about 3,000 homes. It would depend on manure from dairies relocating to
the area to support a Tillamook County Creamery Association cheese plant.
The disposal of livestock waste has become an expensive and complex problem
for farms as environmental regulations tighten.
A typical dairy cow produces about 150 pounds of waste each day.
Methane-powered generators, such as PGE's project, reduce the odors
associated with dairies and create useful byproducts: a nitrogen-rich liquid
fertilizer and an odorless dry fiber that can be used to make potting soils.
At Faber's farm, construction of a 28-foot high concrete tank where waste
will be converted into methane is nearly complete.
PGE officials compare the tank to a giant stomach, where bacteria in manure
continues the digestion process and produces flammable methane.
A modified, internal combustion engine will burn the methane for fuel and
drive power turbines. After the manure is processed, the leftovers will be
pumped through a solid separator, taken off site, and composted.
Liquids will be stored at a lagoon at the dairy.

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

SHARE OWNERSHIP CAP TO BE LIFTED ON AUSTRALIAN GAS LIGHT LTD STOCK

04/03/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

SYDNEY, April 3 Asia Pulse - Australian Gas Light Company Ltd (ASX:AGL)
shares rallied to a three week high today as the market reacted to news that
a share ownership cap on its stock would be lifted.
The energy giant's shares - which have fallen 13 per cent since a profit
warning earlier this month - hit a high of A$11.02 (US$5.25), gaining 32
cents or 2.99 per cent in early trade.
However, the share price quickly eased back to close at a more moderate 14
cent, or 1.31 per cent, rise to A$10.84 (US$5.16).
AGL announced after close of trade yesterday that the New South Wales
government had agreed to a shake-up which would lift a current five per cent
share ownership cap.
At least one analyst predicted the lifting of the cap would leave AGL open to
potential takeovers.
"AGL could well be a takeover target as the global economy picks up and the
big utilities start to expand," a BNP Paribas analyst said in a report today.
The analyst said big utilities such as Utilicorp, TXU, GPU, Hutchison
Whampoa, Singapore Power, Enron and AEP may be interested in AGL in the first
half of the 2002 financial year, when the global economy should be stronger.
AGL shares had slumped 13 per cent since March 8, after the energy giant
warned of a flat full-year profit result.
AGL posted a 14.5 per cent increase in half year net profit to A$208.1
million (US$99.14 million), in line with expectations, but warned that second
half profits would be lower because of seasonal factors, the slowing economy,
and AGL's strategic transformation.
The company's legislative reform follows 15 months of market anticipation and
clears the way for a modern constitution.
Under the changes - to be introduced by July 1, 2002 - AGL would be placed in
the same position as its competitors in the growing energy markets, and
registered under the Corporations Law with its share ownership restrictions
lifted, making it no longer takeover proof.
However, until the changes are made, legislation would strengthen the five
per cent shareholding cap to ensure noone is able to profit unfairly from
trading AGL shares, with hefty fines.
Analysts were now looking out for separate plans by AGL to spin-off its
network assets, with speculation an announcement may be forthcoming as early
as next week.
Meanwhile, analysts said today they didn't expect any further dramatic
further rises in AGL's share price, as the lifting of the cap was still some
time off, and had been widely anticipated.
Hudson Securities client adviser Graham Harcourt said after the initial surge
he was not expecting any "massively major change".
"The final target date is no later than July 1, 2002, that is still 15 months
away," Mr Harcourt said.
ASIA PULSE t 03-04 1849

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

SMARTMONEY.COM: Is It Time To Sell Energy?
By Jersey Gilbert

04/02/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- After a great two-year run for the energy stocks, a
lot of investors are wondering what to do about the sector. Prices for
companies like Noble Drilling (NE), Baker Hughes (BHI) and Anadarko Petroleum
(APC) haven't advanced much in the last month or so, and judging from my
e-mail, a lot of you are wondering if it's already too late to buy in.
The answer: both yes and no.
As with so many investing questions, it all depends on your time frame and
investing strategy. A price- or earnings-momentum investor could make a very
good case that the energy sector is due for a short-term correction and it's
time to sell out of highfliers like Weatherford International (WFT) and Enron
(ENE). A long-term value investor, on the other hand, might continue to see a
buying opportunity in stocks like Transocean Sedco Forex (RIG) and Apache
(APA) based on both historically low price multiples and the possibility of
consolidation.
To understand why both views have merit, you need to look back four years to
1997.
Back then, analysts were talking about coming shortages of oil and gas.
Energy stocks - from drillers like Global Marine (GLM) to boat lessors like
Tidewater (TDW) - were moving for the first time in a decade. Unfortunately,
the party came to an abrupt halt when a global currency crisis triggered
recession in Asia. That, in turn, slowed world-wide demand for energy,
knocking the wind out of most oil and gas stocks.
By 1998, oil prices were down to $11 a barrel (or less, depending on which
quote you follow), and there didn't seem to be much anyone could do. Several
oil-producing countries - including Russia and Indonesia - needed to pump as
much from their reserves as possible in order to earn foreign-exchange
credit. So as demand stagnated, supply increased.
Of course, that situation didn't last long. Once the Asian recession was
over, demand quickly rebounded. With most of the excess OPEC production
flowing to non-Japan Asia, consumption quickly climbed back to 77 million
barrels a day and eventually pushed to the current level of around 79 million
barrels a day. The currency crisis under control, OPEC was able to establish
some discipline and keep production levels in line with global demand.
Finally, after some delay, the analysts' warnings of energy shortages -
especially in natural gas - proved correct.
The question now is whether history will repeat itself.
Once again - and quite suddenly - we are facing a threat of global recession,
and the effect on Asian economic growth could be similar. The culprit this
time around is not currency imbalance, but declining U.S. capital
expenditures. And there's an additional element of instability: The high
prices that energy producers currently enjoy help contribute to economic
slowdown. Carbon-fuel commodity prices might end up as victims of their own
success.
SmartMoney readers know I've been talking about energy stocks for most of the
year. Most recently, we recommended Anadarko, Devon Energy (DVN), Nabors
Industries (NBR) and Patterson Energy (PTEN) in the January issue of the
magazine, and I suggested the sector as a growth candidate in this column in
early March. At the same time you have to be a realist. These stocks depend
primarily on commodity price trends, and even in good times oil prices are
volatile.
With all that's out there to spook investors, we will almost certainly have a
correction in the coming months. But I also believe it will be short lived.
Over the longer term, factors propping up global demand will remain in place,
and that should keep upward pressure on stock prices. In any event, I doubt
investors will abandon the sector wholesale the way they did in 1997 when
there was no recent precedent for sticking with it.
To check this thesis, I talked with two natural-resource fund managers who
still have painful memories of the '97 crisis. They both took over their
current funds early in 1997, just in time to feel the full impact of the
downturn on their performance.
Charles Ober manages T. Rowe Price New Era. He took over the fund from the
legendary George Roche, who'd directed it since 1969. New Era seldom tops the
charts among natural-resource funds, since it has a true diversified
natural-resource objective. The fund always has positions in basic materials,
mining stocks and a controversial stake in Wal-Mart (WMT). The broad
objectives mean the fund lags behind the pure energy-sector funds in the
performance listings when energy is hot, but well-managed diversification
gives it the lowest standard deviation among its peers over the last 10
years, according to Morningstar.
Ober admits that the price levels of energy stocks have as much to do with
psychology as pure fundamentals. Demand for oil doesn't have to actually
fall. The threat of reduced demand is sufficient for investors to get nervous
and dump the stocks.
But the fundamentals themselves are more favorable, in his view, than they
were four years ago. Ober admits that a global recession would test the
resolve of OPEC members much more than the recent economic boom (after all,
it's easier to be disciplined when both your gross domestic product and
oil-export revenues are rising). But he doesn't expect the kind of chaos that
ensued in '97. "OPEC is more proactive in adjusting supply with production
cuts," he says. "I don't think things will be as bad this time."
John Segner of Invesco Energy takes a similar view. "OPEC remembers 1997 and
is watching inventories much more closely," he insists. Segner took over the
fund in February 1997, but that hasn't prevented him from posting the second
best five-year performance record among his peers. (Morningstar doesn't break
out a four-year period.)
Segner also makes the point that, going into this economic slowdown,
inventories above ground (refined and crude products already pumped out of
the wells) are still at very low levels. "Even if OPEC could produce more, we
probably couldn't transport it here," he says, citing limited shipping and
refining capacity. There hasn't been a major new refinery built in the U.S.
since 1984.
Both managers agree that natural gas is a different (and more cheerful)
story. Asian economics have little impact on supply-and-demand factors in
North American natural-gas markets. Other than liquified natural gas, which
is expensive, you can't move gas reserves easily from continent to continent.
Moving into the summer season, air-conditioning usage means so-called peaking
units for electricity generation will be working full blast. Increasingly,
they are fired by natural gas, so demand should remain strong.
The problem with natural gas is that there aren't very many pure plays among
the service companies or the exploration and production companies. These are
normally the energy subsectors with the most leverage to commodity prices.
Almost all the midcap and large-cap names like Ocean Energy (OEI) and
Occidental Petroleum (OXY) have diversified their portfolios between gas and
oil to try to get a little more long-run stability in their revenue. As a
result, you'd expect a global recession to spell trouble for most of these
stocks.
So what should you do? Again, it depends on your time frame. If you're a
long-term investor, there's no compelling reason to sell and take the tax
hit. As for making new investments, consider this: The seasonal window for
commodity and stock prices usually ends with spring. As warm weather
increases both automobile travel and electrical generation, prices are likely
to rise. Usage may ease again in the fall, but that's when the heating
industry starts to stock up inventory for winter, propping up the market
until December. So unless a global recession interrupts things, demand should
keep upward pressure on prices through the end of the year.
Only if you're trying to time the market would selling make sense. It's
reasonable to assume that earnings growth in the second and third quarter of
2001 won't be anything like the growth rates of the fourth quarter of 2000.
That's usually a good indication for a momentum investor to lock in gains. If
you bail, just be prepared to jump back in quickly. If the global recession
scenario doesn't play out and OPEC manages inventories successfully, the
threat of a cold winter could have energy prices peaking again by the end of
the year.
For my money, however, that sort of approach is too complicated. Over the
long term, the world's thirst for energy just doesn't figure to go away. And
that should spell good things for this group, short-term correction or no.
For more information and analysis of companies and mutual funds, visit
SmartMoney.com at http://www.smartmoney.com/
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.


The  CERA  executive roundtable meeting  summary  results are as  follows:
If you are interested  in  a complete  set  of  the graphs from the
presentations  please  let me know.

ELECTRIC POWER  PART  ONE
PEAK  TRENDS
It is  noteworthy how  rapidly volatility can change geographically in the
electric  markets.  Last  year  the U.S. Midwest/South areas   were  the
peakiest,  but   it reversed  this year  with  the  West  being highest  at
the peaks  and in New England --  but only   in early May 2000 were  hgih
peaks  apparent  there.

Demand  can vary from half the peak max  to the max.  Peakers  can be on the
margin on the upper half of the supply mix in many markets.  We need to
watch  gas prices  this  winter  as they can effect  winter peak power
prices--not  just a  summer phenomenon.

Where  are  the most gas plants  now on the margin?  Ercot, FRCC, Neepool,
NYPP, SERC, WSCC

A  DISCONNECT
There  is  a disconnect  in the on-peak forward market price for power in
Texas now; with the  added  5 GW  Texas forward markets  do not seem to
take this  into account yet.  (Note:  Vince Kaminski) The  Texas forward
market  should be  very soft  next summer  unless  we return to  105 degree
F  temperatures.    New England  is  just one year behind  Texas  in its
overbuild.

One main  reason for the  spikes  in Calif  is   power plants  did not  get
built in Calif   due  to  a lack of  a capacity  charge ..and  this is not a
panacea...as Calif also  has  many  enviro/siting  hurdles  that challenge
developers  who want to site as well.

  .

TSUNAMI OF  MERCHANT  CAPACITY PLANNED?
CERA   sees  over  240,000  MW  of planned  capacity over  the  2000-2005
period;  with   25,000 MW  being  completed  in  2000;  35 MW under
construction  for   2001 and 15 000 MW under  construction for   2002--  but
the market  only needing   13 000  to  15 000 MW  a year.   This   shall
lead  to  many  and large deferrals and  delays, especially in  2001  and
2002.  What  has  been the recent  history?   US  wide  over the
past  3 years  just  11 percent of the planned  capacity  was  actually
finished  and   18 percent  of that planned  was  actually  under
construction.  They  assume  a  24 month  construction completion  time.

FOR PROFIT  TRANSMISSION
Cera   sees  Allegheny Energy  in PJM West;  Entergy in SPP;  Southern  in
SERC  and Alliant  in MAPP  as all for profit transcos.
TYPICAL   O&M COSTS  IN U.S.  TRANSCOS
 Why  do  O&M  costs   differ  widely  among  transcos?  Some  costs  are  3
to 8 times higher  than the norm  at
$5000 in O&M expense  per 5000  system  miles  in size.  Regulatory
overhang  allows  this...this is  weather  adjusted  to remove  high  costs
from  big  freezes  etc.

USING REAL OPTION MODEL  VS  POWER PLANT  NPV
You  want to  try to have  the base value of  an asset  going  forward  when
you expect volatility  and include  historical  spreads  and  fuel/power
price  swing  assumptions.

CALIFORNIA  MARKET IS BROKEN
This market  starts  to  work  only after it   gets into  a reliability
crisis.  No incentives  to add power  plant  capacity  and
huge hurdles   against  siting   even when the market  signals the  need is
there.  Will the  regulator's post 2000  fix  make it  worse?

PEAK POWER  DEMAND  FORECAST
As  percent  per year  change  vs   2000  Cera  sees   2001  as follows:
New Eng  / New York 6.3 /  6.2  percent
PJM / ECAR   7.7 / 4.4 percent
MAIN /  MAPP    3.0 /   -0.1
SERC /  FRCC   1.3 /  2.3  percent
SPP /  ERCOT    4.0  /  2.3
NWPP /  Rockies     -6.8  /  -0.6
AZNM /  Calif-SoNV   -0.9   /   4.0
USA  avg    up  2.6  percent   It  looks  like Calif. in in for a   touch
summer  in 2001  as well.

NATURAL  GAS  PART   TWO
SUPPLY  SHORT
Year   2001  supply  rebound could  be  800mmcfd   to 1.0  bcfd;  Canada   in
2001  up only  400  a  day; in the US  we  need   2  bcfd  more supply  for
2001  demand.  alone  let alone  storage   refill.... yet  a
cold winter  now  could   add   3  to 4  bcfd  to demand  and slash
storages.  The  fall in drilling  in 1999  and early  2000  took   3.5  bcfd
productive  capacity out of the  supply pool.  It  will  take  till  2005
for US production to  reach a 4.1 bcfd  gain versus  today's production.

ADDED  GAS  FOR POWER PLANTS
Right now  Cera  expects  an incremental  need for   1  bcfd  next year for
these plants..this will  keep prices  high

MUCH MORE POWER SWING
1990 to 1992  we needed   5  bcfd  for power plant  swings;   now  we need
10  bcfd;  offpeak use is  even up  5  bcfd vs  10 years  ago.

RESI  USE  IS UP
The  AGA  disco members   adds   750 000 new gas   homes  each year  and
this  builds  demand  year   round.

INDUSTRIAL   NUG  DEMAND
Of  the   24  bcfd ( 8.77 Tcf) industrials  gas use  in the US;     8.6
bcfd   (  3.1  Tcf) of this  is for  power plant  and non-mfg  use.

HOW  FAST  CAN CANADA  ADD?
Canada  can add   3.6  bcfd   by  2005   versus  now;   adding  each year
from  2001 to 2005 as follows:  500/800/900/700/700  mcfd annually.

IS  ARCTIC  GAS  ON THE HORIZON?
Its  is  far away;   maybe   4  or  5  bcfd  by  2015..  This  means  up  to
2.7  bcfd  to  flow  to Midwest  by 2015  and up  to  2.4  bcfd  to
Calif./PNW   on expansions  by  2015.


---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on
08/24/99 02:20 PM ---------------------------
From: Mitch Taylor AT ENRON_DEVELOPMENT@CCMAIL on 08/24/99 02:43 PM
To: Mark - ECT Legal Taylor@ECT
cc:
Subject: re: Project Tornado

---------------------- Forwarded by Mitch Taylor/ENRON_DEVELOPMENT on
08/24/99 08:35 AM ---------------------------

"Eric Watson" <EWATSON@skadden.com> on 08/23/99 07:13:09 PM

To:   borden@bingham.com, jhmoore@ect.enron.com, llawyer@ect.enron.com,
mcorbal@ect.enron.com, mkrautz@ect.enron.com, mmalino@ect.enron.com,
mtaylor@ect.enron.com, sdougla@ect.enron.com, etell@exchange.ml.com,
ablakesless@fmg-statestreet.com, cma@fmg-statestreet.com, Kenton@rlf.com,
rbaird@velaw.com, jlawler@wilmingtontrust.com
cc:   EWATSON@mail5.allegro.net, JOSBORN@mail5.allegro.net,
MBUTCH@mail5.allegro.net (bcc: Mitch Taylor/ENRON_DEVELOPMENT)

Subject:  re: Project Tornado

Attached please find a copy of some of the current open issues that must be
resolved prior to printing the Offering Memorandum.

------------------------------------------------------
This e-mail, and any attachments thereto, is intended only for use by the
addressee(s) named herein and may contain legally privileged and/or
confidential information.  If you are not the intended recipient of this
e-mail, you are hereby notified that any dissemination, distribution or
copying of this e-mail, and any attachments thereto, is strictly prohibited.
If you have received this e-mail in error, please immediately notify me by
telephone and permanently delete the original and any copy of any e-mail and
any printout thereof.
 - 0305852.doc


From the Independent Energy Producer's lobbying firm

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 07/22/2001 11:16 PM -----

	"Martinez, Michael" <MRMartinez@manatt.com>
	07/20/2001 08:14 PM

		 To: "'Alex Sugaoka (E-mail)'" <alex.sugaoka@uaecorp.com>, "'Bill Woods
(E-mail)'" <billw@calpine.com>, "'Bob Ellery (E-mail)'"
<bellery@spi-ind.com>, "'Bob Escalante (E-mail)'"
<rescalante@riobravo-gm.com>, "'Bob Gates (E-mail)'" <bob.gates@enron.com>,
"'Carolyn A Baker (E-mail)'" <cabaker@duke-energy.com>, "'Charles Linthicum
(E-mail)'" <charles.linthicum@powersrc.com>, "'Cody Carter (E-mail)'"
<cody.carter@williams.com>, "'Curt Hatton (E-mail)'"
<Curt.Hatton@gen.pge.com>, "'Curtis Kebler (E-mail)'"
<curtis_l_kebler@reliantenergy.com>, "'David Parquet'"
<david.parquet@enron.com>, "'Dean Gosselin (E-mail)'"
<dean_gosselin@fpl.com>, "'Douglas Kerner (E-mail)'" <dkk@eslawfirm.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>, "'Greg Blue (E-mail)'"
<gtbl@dynegy.com>, "'Hap Boyd (E-mail)'" <Hap_Boyd@enron.com>, "'Hawks Jack
(E-mail)'" <jack.hawks@gen.pge.com>, "'Jack Pigott (E-mail)'"
<jackp@calpine.com>, "'Jim Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe
Greco (E-mail)'" <jgreco@caithnessenergy.com>, "'Joe Ronan (E-mail)'"
<joer@calpine.com>, "'John Stout (E-mail)'" <john_h_stout@reliantenergy.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>, "'Kent Palmerton'"
<kent.palmerton@williams.com>, "'Lynn Lednicky (E-mail)'"
<lynn.a.lednicky@dynegy.com>, "'Mark Fillinger (E-mail)'"
<mark.fillinger@enron.com>, "'Marty McFadden (E-mail)'"
<mmcfadden@covantaenergy.com>, "'Paul Desrochers (E-mail)'"
<pdesrochers@thermoecotek.com>, "'Paula Soos (E-mail)'"
<psoos@covantaenergy.com>, "'Randy Hickok (E-mail)'"
<rjhickok@duke-energy.com>, "'Roger Pelote (E-mail)'"
<roger.pelote@williams.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>,
"'Scott Sadler (E-mail)'" <sadlersa@earthlink.net>, "'Stephanie Newell
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Steve Iliff (E-mail)'"
<siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'" <steve_ponder@fpl.com>,
"'Susan J Mara (E-mail)'" <smara@enron.com>, "McMorrow, Thomas"
<TMcMorrow@manatt.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>,
"'William Carlson (E-mail)'" <wcarlson@wm.com>, "'William Hall (E-mail)'"
<wfhall2@duke-energy.com>, "'nam.nguyen@powersrc.com'"
<nam.nguyen@powersrc.com>
		 cc: "'Jan Smutny-Jones (E-mail)'" <smutny@iepa.com>, "'Steven Kelly
(E-mail)'" <steven@iepa.com>, "'Katie Kaplan (E-mail)'" <kaplan@iepa.com>,
"'Jean Munoz (E-mail)'" <jmunoz@mcnallytemple.com>, "'Andy Brown (E-mail)'"
<abb@eslawfirm.com>, "'Carol Hudson (E-mail)'" <carol@iepa.com>, "'Sandra
Moseley (E-mail)'" <sandra@iepa.com>
		 Subject: RE: Legislative Report (07/20/2001)

Dear all,

Attached is this week's legislative report.

This entire week has been focused on devising a "solution" for the energy
crisis in addition to negotiating the passage of the state budget. Although
the Democratic leadership of the Assembly and the Governor successfully
lobbied four Assembly Republican lawmakers to switch sides and vote for the
budget on Monday, the four Republicans have refused to vote for five crucial
"trailer" bills which are necessary to implement the budget bill. There are
approximately 18 trailer bills that must be passed in addition to the budget
bill, but 5 have raised concerns for the Republicans:  SB 767 Transportation
Funding Shift, SB 735 Elimination of School Facility Fee Housing Programs,
SB 1041 Omnibus Health Trailer Bill,  AB 144 Public Social Services and SB
79 Omnibus Social Services Trailer bill.  Senate President pro Tempore John
Burton has stated that they will not vote on the budget bill in the Senate
until the trailer bills are approved by the Assembly.  As of 7:00 p.m.
tonight, there is no budget deal.

Meanwhile, on the energy front, the four proposals we have been discussing
all week -- SB 18xx (Burton), SB 78xx (Polanco), AB 82xx (Keeley) and AB
83xx (Wright) -- are still "in play" legislatively this evening, even though
the governor told the Dow Jones Newswire earlier today that the proposals
are not acceptable to him in their current form and encouraged the Assembly
and Senate to stay in session (despite the scheduled summer break) until a
bill acceptable to him could be agreed upon by the two houses and sent to
him for signature:

* SB 78xx (Polanco) Electric Utility Rate Stabilization Act of 2001
passed out of the full Senate on Friday with 22 AYES and 17 NOES.  The
originally introduced version of SB 78xx reflected the terms of the original
Memorandum of Understanding ("MOU") negotiated between Governor Davis and
Southern California Edison ("Edison").  It was recently amended to reflect
Senator Sher's proposed "Plan B" of the MOU -- a version of the MOU opposed
by Edison on the grounds that the bill would not leave Edison creditworthy.
It was heard in the Senate Energy, Utilities and Communications Committee on
Wednesday where it failed on a 4 AYES and 3 NOES vote.  Reconsideration was
granted, however, and the bill passed out of the committee with 6 AYES and 2
NOES on Thursday morning. The authors took up amendments such as striking
the urgency clause, changing the rate component from 125 KWs to 500 KWs,
placing conservation lands into land trusts and deleting Section 399.26
(which insulated Edison International from certain claims) during the
Thursday hearing.  SB 78xx was then passed out of the Senate Appropriations
Committee on Thursday with 7 AYES and 3 NOES.

* SB 18xx (Burton) Department of Water Resources: electricity: bond
financing order passed out of the full Senate on Friday with 35 AYES and 2
NOES, making it possible for DWR to issue bonds at a lower, cheaper rate
than allotted in AB 1x (Keeley) assuming the Assembly concurs and the bill
is signed by Governor Davis.  The bill also prohibits any additional charges
such as consultants and ad campaigns unless approved by the Legislature and
requires certain "sunshine" provisions for greater scrutiny of contracts
entered to by the DWR.  We understand that J.P. Morgan and Lehman Brothers
-- the firms working with State Treasurer Angelides on the bond offering --
have advised the governor's office that SB 18xx could delay the issuance of
the bonds indefinitely for a variety of reasons, so it is unclear whether
this bill will ever be signed.  The bill was heard by the Senate Energy,
Utilities and Communications Committee on Thursday where it passed with a 10
AYES and 0 NOES vote.  It next must be heard in the Assembly.

* AB 82xx (Keeley) Electric Utility Rate Stabilization Act of 2001
passed out of Assembly Energy Costs and Availability Committee Wednesday
evening on a 11 AYES and 9 NOES vote.  It was then heard later the same
evening by the Assembly Appropriations Committee, where it was passed on a
11 AYES and 6 NOES vote.  This is the "compromise" bill we have been
discussing all week authored by Speaker Hertzberg and Assembly Member Fred
Keeley.  The bill continues to be a work in progress as we write this
report, with significant amendments being considered and awaiting a vote by
the full Assembly, possibly later this evening.  The current version of the
bill provides for limited direct access, state purchase of Edison's
transmission lines for $2.4 billion, a minimum 30 percent "haircut" for the
major generators and a "trust" to cover all claims not dealt with by the
haircut option.

* AB 83xx (Wright) Alternative Electric Utility Rate Stabilization Act
of 2001 was amended into AB 50xx (by Assembly Member Bill Campbell) in the
Assembly Energy Costs and Availability Committee Wednesday evening, and then
passed out of committee with 11 AYES and 9 NOES.  It next must be heard by
the Assembly Appropriations Committee, barring a rule waiver.  No such
committee hearing is scheduled at this time.  Co-authored by Assembly
Members Rod Wright, Keith Richman, Joe Canciamilla and Bill Campbell, the
bill would allow the utilities to impose a basic monthly charge to address
the net undercollection, among other things.

Other energy-related developments this week include:

* SB 84xx (Burton) State Energy Resources Conservation and Development
Commission passed out of the full Senate on Friday with 30 AYES and 1 NO and
sent to the Assembly. This bill provides $10 million from the state General
Fund to the California Energy Commission ("CEC") to fund a matching grant
program for a battery backup power source for LED traffic signals. The grant
program will be administered by the CEC, in consultation with local
governments, and will provide 70 percent of the cost of the battery backup
system.  It next must be heard in the Assembly.

* The FERC is expected to consider disbanding the current ISO Board
for an independent slate of directors on Wednesday, the FERC announced on
Friday.   Despite a Dec 15, 2000, FERC order requiring the appointment of an
independent governing board for the ISO, the state has refused to follow the
order citing that only the state legislature can change the composition of
the board. Supporters of the FERC order argue that political appointees
should not oversee power markets due to the state's domineering role in
purchasing power on behalf of the beleaguered utilities.

* SB 85xx (Burton) Electrical restructuring: rates passed out of the
full Senate on Thursday with 37 AYES and 0 NOES.  This bill bars the
California Public Utilities Commission (CPUC) from raising rates back to the
pre-10 percent rate reduction levels solely because the mandatory rate
reduction period has expired on March 31, 2002.  It next must be heard in
the Assembly.

* The Senate gave authorization to the Senate Select Committee to
Investigate Market Manipulation on Thursday to subpoena top energy company
executives to provide testimony and further insight into their companies'
trading practices.  The resolution -- SR 14 -- passed out with 28 AYES and 6
NOES.

* The Senate Select Committee to Investigate Market Manipulation voted
unanimously on Wednesday to ask the full Senate to find Texas-based Reliant
Energy in contempt for failing to comply with a subpoena for documents.
Despite Reliant's having handed over 10,000 documents, the committee
rejected them after being unable to reach agreement over the confidentiality
of Reliant's documents. The committee stepped back from its contempt vote
last week against Enron after the company and committee moved closer to
agreement over its release of thousands of documents stored in Texas.
Mirant resolved its pending contempt citation by agreeing to turn over
subpoenaed documents.  The contempt citation against Reliant will be
presented to the full Senate, and then immediately sent to the Rules
Committee for another hearing before the full Senate acts, Dunn said.

* The state's estimate of being overcharged for electricity dropped
from $8.9 billion to $6.1 billion after a FERC judge ordered a readjustment
in the state's figure on Wednesday.  Although the state continues to argue
that the $8.9 billion figure is correct, FERC Judge Curtis Wagner called the
figure "baseless" and criticized the California delegation for "not
negotiating in good faith" during the recent settlement discussions.  The
new amount, $6.1 billion, does not include power sales to municipal
utilities and alternative energy suppliers -- two entities that do not fall
under the purview of the ISO, PX or the state DWR -- as well as applies FERC
price controls imposed June 19 and retroactively takes into account sales
from October 2 onward.

* AB 28xx (Migden) Electrical restructuring: Oversight Board: ISO
passed out of the Senate Energy, Utilities and Communications Committee on
Tuesday to Senate Appropriations with 7 AYES and 0 NOES.  It was amended by
the author in committee to "double-join" it to SB 39xx (see below).  This
amendment "ties" the ultimate fate of AB 28xx to the fate of AB 39xx, unless
the double-joiner language is removed from the bill before it goes to the
governor for signature, assuming the bill gets to the governor.

* SB 39xx (Speier) Public utilities failed to pass out of the Assembly
Energy Costs and Availability Committee on Tuesday with 7 AYES and 10 NOES.
Reconsideration for the bill to be reheard in the committee was granted to
the author.  Given the failure of SB 39xx in committee, AB 28xx is
effectively "dead" as well for the moment (see discussion of AB 28xx above.)

Best regards,
Tom McMorrow and Mike Martinez

 <<IEPA Legislative Report.DOC>>

 - IEPA Legislative Report (4).DOC


Start Date: 4/19/01; HourAhead hour: 14;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041914.txt


I would like to see the composite.  I think my home computer has logon access
through the firewall.


Attached are draft message points for California.  Note that the "what
happens to Sierra's California customers" discussion is weak, but based on
the facts.

I plan on distributing these in draft to Sierra for their comments by COB
today.  Please contact me with any comments ASAP.


Attached is an updated list of master netting assignments.


Don't forget to chat with VNG about Nabisco.

VNG should have released 700 dth of CGAS capacity to Nabisco effective
11/1/2000 - 10/31/2001.  Nabisco was not set up as a prearranged bidder at
the time.  During Nov bidweek for Dec, Nabisco asked me to release the
capacity.  Since the term was less than 1 year, I couldn't release the
capacity non-biddable.  I spoke to Jeff Huston about it early last week and
he said he would get back to me.   Dick suggested I tell you.  TAGG - you're
it, I will await your command.  Mr. Scott Goodell said we could release the
capacity for 1 year eff 1/1/2001 and then recall Nov and Dec.


Beverly,
Wow!  Fantastic.  Thanks for sharing your success and letter.
mike

To: Mike McConnell/HOU/ECT@ECT, Cathy Phillips/HOU/ECT@ECT
cc:
Subject: Juvenile Diabetes Foundation

I wanted to give you an update on my progress in EES with the JDF - - - -as
of this afternoon, I have collected (with Enron matching) $4,600.

This is the letter I sent to my solicitation list last week - .....  Pretty
good for one week, right?

Good afternoon.

My 17 year old son has had diabetes since he was 2 years old.  Imagine this -
as of today, Austin has taken more than 16,425 shots and more than 27,300
finger sticks.  It never gets easier for him and it will never go away until
a cure is found.   Diabetes is the leading cause of kidney failure, adult
blindness and non-traumatic amputations, a leading cause of nerve damage,
heart attack and stroke.  Until a cure is found, his health is better today
than it will be tomorrow.

Please let me know if I can count on you to walk with me or help raise funds
for Juvenile Diabetes.  84% of the money raised goes directly to diabetes
research.   My commitment to you is this - walk with me - I guarantee you a
morning of fun, good times and the opportunity to meet a large, dynamic group
of people committed to finding a cure.  Sponsor me - you will help millions
of kids like mine that are desperately looking for a cure.

The walk is on Sunday, November 5, 9:00 AM - 4.5 miles at Sam Houston Race
Park.   If you cannot join in the walk but want to help monetarily, please
send your check payable to the Juvenile Diabetes Foundation (JDF) to my
attention - 1400 Smith Street, EB 760 / Houston, Tx
77002.

From the bottom of my heart, I thank you.    My son and millions of other
kids with diabetes thank you as well.


WPTF has just voted to file a protest on Amendment 30 (the ISO is asking to
be able to buy power for itself in the forward market).  I agreed to fund as
did 4, maybe 5, others.  The discussion was not exactly as you describe below
but I will be able to have lots of input on the filing, and am sure I can get
the points included.  Therefore, I recommend that Enron NOT make a separate
filing on this.

Here is what WPTF voted on:  Ask FERC to limit ISO procurement only to the
super peak product that has already been developed by the APX and require
that the price caps end in 6 months; if the ISO wishes to renew the price
caps it would have to file 60 days in advance of the 6-month deadline.

Mary Hain@ECT
09/28/2000 12:28 PM
To: Susan J Mara/SFO/EES@EES
cc: <mary.hain@enron.com>@ENRON, <smara@enron.com>@ENRON,
<snovose@enron.com>@ENRON, Paul Kaufman/PDX/ECT@ECT, James D
Steffes/HOU/EES@EES, Tim Belden/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, Jeff
Richter/HOU/ECT@ECT, carrrn@bracepatt.com
Subject: Cal ISO Amendment 30

Sue- in WPTF's protest of Amendment 30, is WPTF proposing to make the
following arguments?  If not we need to have Ron give an estimate for an RCR
and draft a protest.

Amendment 30, which would allow the Cal ISO to do limited forward contracting
and to allocate the costs thereof to under/overschedulers (protests due
Oct.2)the traders would like to say that the ISO should not be in the forward
market, rather the IOUs should be in the forward market and should be
incented to do so.  Rather than doing anything to fix this failure to hedge
and underscheduling by the IOUs, this filing would further amplify the
problem by concentrating even more transactions with the ISO and lead to the
slippery slope to the ISO running the entire market.

Since, the filing also creates other problems.  Through the proposal to do
bilateral deals without first receiving bids, the ISO moved itself out of
compliance with Order No. 2000 (assuming it ever complied) by starting to
violate the independence characteristic - the FERC's first minimum
characteristic for an RTO.  Under this, the RTO is required to be independent
of market participants.  Order No. 2000 defines a market participant as any
entity or its affiliate that buys or sells electric energy in the RTO's
region or in any neighboring region that might be effected by the RTO's
actions.

Further, the ISO is already buying out of market and this move would further
complicate existing problems that we have with OOM.

In addition, although the filing claims that it's request is  limited, yet
there is no time limitation.  Further, the limitation seems to have little
real effect.

	Enron Capital & Trade Resources Corp.

	From:  "Ronald Carroll" <rcarroll@bracepatt.com>
09/19/2000 03:23 PM

To: <mary.hain@enron.com>, <smara@enron.com>, <snovose@enron.com>
cc:
Subject: New California Filings

There have been several recent filings related to California that you may
wish to intervene in and/or protest:

1.  CAISO proposal to extend price cap (ER00-3673-000) (due Oct. 5);

2.  CAISO compliance filing with San Diego order to make limited forward
contracting and to allocate the costs for those contracts to SCs whose
forward schedules do not reflect their actual real-time demands.
(ER00-3636-000) (due Oct. 2);

3.  City of Vernon filing to join ISO (EL00-105-000) (due September 29).
This filing triggers the CAISO's TAC charge effective 1/1/01;

4.  Complaint by Cities of Anaheim, Azusa, etc. regarding the CAISO's
collection of OOM incurred to meet system reliability and to require the
CAISO to abide by the cap in Neutrality Adjustment Charge.

Please let me know as soon as possible if you wish to intervene in and/or
protest any of these filings.  Thanks.  Ron


This is the press notice on the vote taken today at the FERC on the
California bulk market investigation.


Vince,

Happy Boss Day !  You have been a wonderful boss, thank you.

Zimin

---------------------- Forwarded by Zimin Lu/HOU/ECT on 10/16/2000 08:49 AM
---------------------------

Kevin G Moore
10/16/2000 05:58 AM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Pinnamaneni
Krishnarao/HOU/ECT@ECT, Vasant Shanbhogue/HOU/ECT@ECT, Mike A
Roberts/HOU/ECT@ECT, Joseph Hrgovcic/HOU/ECT@ECT, Tanya
Tamarchenko/HOU/ECT@ECT, Zimin Lu/HOU/ECT@ECT, Martin Lin/HOU/ECT@ECT,
Maureen Raymond/HOU/ECT@ECT, Osman Sezgen/HOU/EES@EES, Paulo
Issler/HOU/ECT@ECT, Amitava Dhar/Corp/Enron@ENRON, Alex
Huang/Corp/Enron@ENRON, Kevin Kindall/Corp/Enron@ENRON, Kevin G
Moore/HOU/ECT@ECT, Clayton Vernon/Corp/Enron@ENRON, William
Smith/Corp/Enron@ENRON, Jose Marquez/Corp/Enron@ENRON, Chonawee
Supatgiat/Corp/Enron@Enron, Shalesh Ganjoo/HOU/ECT@ECT, Tom
Halliburton/Corp/Enron@Enron, Elena Chilkina/Corp/Enron@Enron, Sevil
Yaman/Corp/Enron@Enron, Sofya Tamarchenko/NA/Enron@Enron, Bob
Lee/NA/Enron@Enron, Gwyn Koepke/NA/Enron@Enron, Hector Campos/HOU/ECT@ECT,
Anita DuPont/NA/Enron@ENRON, Youyi Feng/NA/Enron@Enron, V Charles
Weldon/HOU/ECT@ECT, Shane Green/HOU/EES@EES, Yana Kristal/Corp/Enron@ENRON,
Praveen Mellacheruvu/HOU/EES@EES, Li Sun/NA/Enron@Enron, Stephen
Bennett/NA/Enron@ENRON, Roman Zadorozhny/HOU/EES@EES, Lance
Cunningham/NA/Enron@ENRON, Shirley Crenshaw/HOU/ECT@ECT, David
Ryan/Corp/Enron@ENRON, Todd DeCook/Corp/Enron@Enron
cc:
Subject: Boss's Day

Reminder - Let your Boss know that
you care !
Tell him or her Happy Boss's Day !

Happy Boss's Day  , Vince , Mike , Vasant  and Stinson and also to you
Shirley,
I hope you all have a wonderful day .

Also remember The Weather Team will be over at Ninfa's for
3:30 p.m. for Happy Hour.  TODAY

YOU ARE WELCOME TO JOIN US ............


sure


Larry,

Attached is the nomination form used by KeySpan of New York.  If you
have any difficulty
opening this Excel file, please call me.

Thanks, Anne
(718) 403-2981

P.S.  Don't re-fax this to me for this month, but if you should have any
contract changes during
the month, please use this form.

Thanks again, Anne

 - Nomfrm.xls


Jason,

The following comments are an indicative response to the questions you asked
during our phone conversation on Tuesday 4/3.  The following comments are NOT
an additional pipeline proposal for the Murphy Medusa Project or an addendum
to Enron's Medusa Pipeline Proposal.  There is insufficient time for Enron to
obtain management approval of the following comments before Murphy's
estimated recommendation date of Friday 4/6.  However, given additional time,
or if awarded an LOI, Enron would work quickly to better define the issues
discussed herein.

AMI Step-down:  As you and I discussed, Enron believes that the expected NPV
of the risked AMI production volumes are in line with Enron's level of
un-garranteed risk.  However, Enron would be willing to negotiate an AMI
tariff step-down after a defined level of AMI production.  Notionally, Enron
would be willing to consider a 25 percent AMI tariff reduction after 70
million bbl and 100 million mmBTU of AMI production for the oil and gas
export lines respectively.

Abandonment:  The O&M charges proposed in the Pipeline Structure were set to
partially recoup expected abandonment costs.  If Medusa produces 70MMBOE,
Enron would expect to have some abandonment liability.  Moreover, Enron's
actual abandonment costs could be significantly higher than initially
estimated due to rig availability, inflation or, most importantly, regulatory
changes.  Secondly, we have assumed no pipeline residual value.  No pipeline
residual value is a reasonable assumption, given that in the Pipeline
Structure, Enron would have no influence over the re-deployment of the FPS.
Moreover, even if the pipelines were sold, the sales price would recognize
the net value of the pipelines after abandonment.  Thus, there would be no
double dipping on abandonment costs.

Oil Transportation:  Enron's understanding is that the $0.70/bbl for
transportation from WD 143 is still a reasonable transportation estimate.
This transportation cost estimate would be negotiated with Equilon after the
execution of an LOI.

$30MM CAPEX Scenario:  Per your request, Enron has investigated a scenario
where Enron would buy the oil and gas export pipelines from Murphy at a fixed
price of $15MM each at the start of production.  Then, export pipeline
capacity would be leased to the Venture, Venture Partners and 3rd party
producers.  Based on a preliminary investigation, the Medusa production
tariffs would reduce proportionately to the CAPEX.  Therefore, the tariff
traunches for the oil and gas export pipelines would be:
$0.40 / bbl, $0.33 / bbl and $0.10 /bbl for the oil export pipeline
$0.35 / mmBTU, $0.14 / mmBTU and $0.07 mmBTU for the gas export pipeline

Thank you for the opportunity to bid on the Medusa FPS and export pipelines.
Please call me if you have any questions concerning the above comments and/or
Enron's previously submitted Medusa proposals.

Regards,

Kenneth Loch
713-345-8962


Thank you all for being so responsive.

I'm still waiting for claims on:
Ameren
AIG
CLECO
Colonial
ConAgra
Dominion
Enterprise
Chase
Noble
Cornerstone
Occidental
Carolina Power and Light
Southern Co.
Western Gas Resources

Anyone? Please let me know by noon today.

Thanks again for your help.

Jennifer


All,

	Based on conversations with IT, I believe a better solution is to leave the estate version of RMS as is. Since the Netco version of RisktRAC is on schedule for delivery,  I see no gain in populating the estate database with Netco books. Curves will be brought into the Netco version as part of the static data migration.

	In an effort to help with the Netco setup, IT has prepared an Excel template for populating the data required for book creation. Jeff and Stacey will lead the effort to get these spreadsheets populated with all the information required to set up the new books for Netco. Once the Netco version of RisktRAC is up and running, IT will load these spreadsheets and systematically create the new books at that time.

	I am attaching the template from IT. Jeff and Stacey's teams will need support and training as to the proper population of each of these fields. Perhaps one of your group could take a few minutes to write some basic rules for data population and forward to the new users?

	I hope this alternative will allow the best use of all of our time as we try to get through the requirements for the next couple of weeks. Please respond with  questions or comments.

	Thanks,

	Debbie

 -----Original Message-----
From: 	Wilson, Shona
Sent:	Monday, January 07, 2002 3:28 PM
To:	Hall, Bob M; Gossett, Jeffrey C.; White, Stacey W.; Brackett, Debbie R.; Ramesh, Ganapathy; Cheung, Cecilia
Cc:	Beck, Sally; Apollo, Beth; Pearce, Barry
Subject:	NETCO access to RisktRAC

Looks like we have an issue with RisktRAC access.  In order to be able to set up books in RisktRAC, the only role that currently exists is the Risk Controls group, who has access to all books, hierarchies etc (all groups, all commodities).  With NetCo coming on line, the Risk Controls group has been asked to approve RisktRAC access to the new NetCo controls group so they can set up the new gas books that have been requested.  I am uncomfortable granting access to NetCo personnel, as they would be able to see all the estate info, including Europe, EIM, EGM, ENA etc.  Also, it is my understanding that the IT groups are working on splitting out the systems but will not be able to do so until after these books have to be set up (deadline for them is next Monday).  As such, I recommend the following:

In order to ensure there is a segration between NetCo and the estate, until the systems are segregated, the IT groups should be responsible for setting up books, curves etc.

How does that sound?

Thanks

Shona Wilson
Director, Global Risk Operations
X39123


FYI. I have jury duty on Wednesday, Feb 14.

Kay


Do I need to bring a pen and paper?  Is that considered "professional"?  I
think it would be more impressive if you were taking my notes.  Let me know
what you think.

D

	From:  Yvette G Connevey @ ENRON                           03/01/2000 11:54 AM

To: Lisa Csikos/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Mary M
Smith/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Pat
Clynes/Corp/Enron@ENRON, Michael Walters/HOU/ECT@ECT, Eric Bass/HOU/ECT@ECT,
O'Neal D Winfree/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT, David
Baumbach/HOU/ECT@ECT
cc: Brenda F Herod/HOU/ECT@ECT
Subject:

REMINDER:

Tuesday, March 7th there will be an ENA Gas Assets Meeting with Cliff Baxter
and Greg Whalley from 2:00 - 3:00 pm in Conference Room EB5C2.

Everyone who supports the ENA Gas Assets business is encouraged to attend,
this includes each Manager and your groups.  Understanably, you may need some
people covering desks and phones who won't get to attend.  For those who will
be able to make it, keep in mind we would like to leave everyone with a
professional image of our groups.  Please encourage your groups to be there
on time if not slightly early and modeling the Enron dress code.

If you have any questions please call.

Thank You!
Yvette
x3.5953


CUIABA
Furnas: Nothing particularly new to report since last week, other than it appears we are likely to get the consent documents signed Tuesday or Wednesday. These documents reflect a resolution to the consent issue and the Resolution 49 regulatory issues that changed some of the risks under the PPA.   As reported last week, one of the reasons Furnas/Electrobras have agreed to sign is because the two difficult issues regarding (i) the validity of the Electrobras guaranty following privatization; and (ii) political force majeure allowing a "put" option for Brazilian governmental acts, were deleted from the Furnas consent documents and will be negotiated separately with the Brazilian government over the next two weeks.  These issues must also be resolved for financing.

GT11/12:  Repairs still on schedule to meet requirements under the PPA for the changeover to gas by year end.  Siemens and our engineers will meet with the underwriters in London tomorrow to discuss the root cause of the failures.  Still no written confirmation of coverage, but we currently do not anticipate a problem.

Shell:  Preparing for mediation to be held in Toronto November 5-7.

ANNEX V

After reporting last week that the cost pass through suits had been filed, I learned that Orlando Gonzales made the commercial decision to hold off on those suits because of significant progress he made in negotiations with the Brazilian government for resolution of these issues and Annex V.

Elektro received some of the information from ASMAE for calculating its numbers; however, as of Friday it had not received the information for the rationing period, the relevant period for calculating the set off.  I talked with Vasco this morning and he believed this information was received today and will confirm.  If the information is not forthcoming, we are prepared to file a suit to compel it.

I will stay in touch with Orlando this week to determine if and when we can file these suits without interfering with his negotiations.

Regards,
   Michelle


Geoff, Please provide your offer for ML7 paper for the months and volumes listed below:

Jul-01		35,000/month
Aug-01	35,000/month
Sep-01	45,000/month
Oct-01		65,000/month
Nov-01	40,000/month
Dec-01	50,000/month
Jan-02		60,000/month
Feb-02	45,000/month
Mar-02		35,000/month
Apr-02		70,000/month
May-02	50,000/month
Jun-02		40,000/month

I will call you around 2:00 pm today to finish the transaction.

Thanks,
Jesus


Shari, Can you take a look at this revised market description and let me know
if its ok.  Thanks.
---------------------- Forwarded by Tana Jones/HOU/ECT on 09/07/99 11:20 AM
---------------------------

Awais Omar
09/07/99 11:18 AM
To: Tana Jones/HOU/ECT@ECT
cc:
Subject: Weather description

Tana,  the one I am talking about is the one in the attached mail from Steven
Vu.  This was sent this morning.  Shari sent his on Friday and it is differen
tot his one.

Awais

---------------------- Forwarded by Awais Omar/LON/ECT on 07/09/99 17:18
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Steven Vu                           07/09/99 13:51

To: Awais Omar/LON/ECT@ECT
cc: Shari Stack/HOU/ECT@ECT
Subject:

Awais:

You should have received our market description from Shari this morning.
Lynda asked me on Friday to add some more to the content, and the attached
file has these changes.  If it is not too late, please use the attached file
as our market descriptor.

---------------------- Forwarded by Awais Omar/LON/ECT on 07/09/99 17:18
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Tana Jones                           07/09/99 17:13

To: Awais Omar/LON/ECT@ECT
cc:
Subject: Re: Online Trading

Awais,

I think the weather description you are referring to was sent by an attorney
in our group, Shari Stack.  If that is the one you are talking about, it
should be okay.   I don't know the regulatory guys, but I'll try calling
Steve Kean and see if I get a response.


Happy New Year.  We hope your holidays were enjoyable and restful.  For a pleasant start to 2002, please join your Enron colleagues for coffee and donuts this Friday, January 11, from 8:00 - 9:00 a.m. in the lobby of the Enron Building.  We look forward to seeing you there.


---------------------- Forwarded by Phillip M Love/HOU/ECT on 11/30/2000
01:53 PM ---------------------------

Bruce Mills@ENRON
11/30/2000 11:24 AM
To: Phillip M Love/HOU/ECT@ECT
cc:
Subject: FW: NEW elf bowling!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

---------------------- Forwarded by Bruce Mills/Corp/Enron on 11/30/2000
11:22 AM ---------------------------

"Cantu, Veronica" <vcantu@bcm.tmc.edu> on 11/30/2000 11:05:54 AM
To: "'Adrian Cantu'" <acantu@hotmail.com>, "'Amy_Copes@Dell.com'"
<Amy_Copes@Dell.com>, "'Bruce.Mills@enron.com'" <Bruce.Mills@enron.com>,
"'elena morales'" <elena_morales@excite.com>, "'Francisco Sanchez'"
<hcdpsecretary@hotmail.com>, "'Gina.Kane@AACN.org'" <Gina.Kane@AACN.org>,
"'Kristine Best'" <kristinebest@hotmail.com>, "Liau, Katherine"
<Kliau@www.urol.bcm.tmc.edu>
cc:

Subject: FW: NEW elf bowling!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

-----Original Message-----
From: Jonietz, Laurie
Sent: Thursday, November 30, 2000 10:38 AM
To: 'ludmilla'; 'andrea'; Coleman, Angela; Cantu, Veronica; Riezner, Melanie
Subject: NEW elf bowling!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

i'm too dumb to figure this version out.  maybe it would help if i read the
rules.....

 - elves2.exe


Sorry, I was at a floor meeting.  I'm looking now.

 -----Original Message-----
From: 	Nemec, Gerald
Sent:	Wednesday, December 19, 2001 10:48 AM
To:	Elledge, Susan
Subject:	More Contracts

Susan,  Could you look for and email me the following:

Storage Agreement with Montana Power
Interruptible Storage Agreement with WBI
Transport Agreement with Trailblazer Pipeline Company (Think it was dated around 1995)

Sorry for the sketchy info, but that is all that I have.  Thanks.


Claire:
Here is the information for the Calpine project that we talked about
yesterday and that Jim Simpson sent you the e-mail about.

Hypothetical 4 LM 6000 Peaking Project in Eastern PJM
VOM:  $2.23
H.R. 10,5000
Gas Curve: Transco Zone 6
Power Curve: East Hub Curve in PJM
Commercial Operations Date: 6/1/01

We are looking for a 3 and 5 year capacity number ($/kw-mo.) one number for
each time period.  Please let me know if you need any more information
regarding the project.  Thanks for your help.
Ben


Thanks.

 -----Original Message-----
From: 	Imai, Rika
Sent:	Monday, July 02, 2001 8:40 AM
To:	Presto, Kevin M.
Subject:	RE: New Gen Update 13 ss
Sensitivity:	Confidential

Kevin,

It has been posted to the east power portal under

Daily Information - New Generation Update Summer 2001

We will continue to update the information  ASAP.

Rika

 -----Original Message-----
From: 	Presto, Kevin M.
Sent:	Monday, July 02, 2001 8:03 AM
To:	Imai, Rika
Subject:	FW: New Gen Update 13 ss
Sensitivity:	Confidential

Can we make sure this goes on the Web site.

 -----Original Message-----
From: 	Holman, Kelly
Sent:	Friday, June 29, 2001 4:28 PM
To:	Presto, Kevin M.; Will, Lloyd; Sturm, Fletcher J.; Davis, Mark Dana; Herndon, Rogers; Gilbert-smith, Doug; Imai, Rika; Tholan, Scott
Cc:	Walsh, Kristin
Subject:	New Gen Update 13 ss
Sensitivity:	Confidential

Kevin,

Attached below is a comprehensive spreadsheet of all 85 plants and their status. We are continuing to monitor and update information as it is received. Please review and if you have any questions or further tasking feel free to contact me (3-9844) or Kristin Walsh (3-9510).

 << File: UPDATE 13 062901.xls >>

Thanks,
Kelly


Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com
----- Forwarded by Carol St Clair/HOU/ECT on 08/29/00 08:11 AM -----

	"Curry, Alicia" <acurry@velaw.com>
	08/28/00 01:59 PM

		 To: "Kopper, Michael (Enron)" <michael.kopper@enron.com>, "Tiller, AnnMarie
(Enron)" <annmarie.tiller@enron.com>, "Schnapper, Barry (Enron)"
<barry.schnapper@enron.com>, "St. Clair, Carol (Enron)"
<carol.st.clair@enron.com>, "Sefton, Scott (Enron)" <scott.sefton@enron.com>,
"'kenton@rlf.com'" <kenton@rlf.com>, "'dj@lordspv.com'" <dj@lordspv.com>,
"'aw@lordspv.com'" <aw@lordspv.com>, "'aroberts@wilmingtontrust.com'"
<aroberts@wilmingtontrust.com>, "'martha_stuart@kirkland.com'"
<martha_stuart@kirkland.com>, "Chandler, Trina" <tchandler@velaw.com>,
"'kevin.d.jordan@enron.com'" <kevin.d.jordan@enron.com>, "Astin, Ronald T."
<RAstin@velaw.com>, "Spradling, Mark" <MSpradling@velaw.com>, "Osterberg,
Edward" <eosterberg@velaw.com>, "'Anne Yaeger'" <Anne.Yaeger@enron.com>,
"'Ian Schachter'" <ian.schachter@us.pwcglobal.com>, "'Michael Edsall'"
<michael_edsall@kirkland.com>, "'Brent Vasconcellos'" <bvascon@enron.com>,
"'Trushar Patel'" <trushar.patel@enron.com>, "'rsiurek@enron.com'"
<rsiurek@enron.com>, "'patty.grutzmacher@enron.com'"
<patty.grutzmacher@enron.com>, "'jennifer.stevenson@enron.com'"
<jennifer.stevenson@enron.com>, "'simpson@rlf.com'" <simpson@rlf.com>
		 cc: "Halbert, Elaine" <ehalbert@velaw.com>
		 Subject: Project Raptor III (2 of 2 emails)

 Attached please find drafts of the following:

1. Security Agreement

2. UCC-1 Financing Statements

3. Stock Transfer Restriction Letter Agreement

4. Roadrunner LLC Agreement

5. Bobcat LLC Agreement

6. Enron Management Services Agreement

7. LJM Management Services Agreement

8. Tax Indemnification Agreement

9. Certificate of Incumbency of BSCS XXIII, Inc.

10. Opinion of Vinson & Elkins L.L.P.

11. Enron Corp. Demand Note

12. Confidentiality Agreement

13. Peregrine Letter Agreement

14. List of Documents

> Alicia L. Curry
> Vinson & Elkins L.L.P.
> 2300 First City Tower
> 1001 Fannin Street
> Houston, Texas 77002-6760
> Phone:  713-758-4428
> Fax:  713-615-5688
> (Licensed in New York only)
>
>
>
>
> +++++++++++++++++++++++
> CONFIDENTIALITY NOTICE
> +++++++++++++++++++++++
> The information in this email may be confidential and/or privileged.
> This email is intended to be reviewed by only the individual or
> organization named above. If you are not the intended recipient or an
> authorized representative of the intended recipient, you are hereby
> notified that any review, dissemination or copying of this email and
> its attachments, if any, or the information contained herein is
> prohibited. If you have received this email in error, please
> immediately notify the sender by return email and delete this email
> from your system. Thank You
>
PRIVILEGED AND CONFIDENTIAL:
Contains attorney-client communications and/or attorney work product.

 - Ten.DOC
 - Twenty-one A.DOC
 - Twenty-two.DOC
 - Twenty-four.WPD
 - Twelve.DOC
 - Fourteen.DOC
 - Sixteen.DOC
 - Eighteen.DOC
 - Nineteen.DOC
 - Seventeen.DOC
 - Fifteen.DOC
 - Thirteen.WPD
 - Eleven.DOC
 - Twenty-three.DOC
 - Twenty-one B.WPD
 - Twenty.DOC


EHR is back online. Thank you for your patience.

Thank you,

ETS Solution Center - Houston, at 713-345-4745
ETS Solution Center - Omaha, at 402-398-7454


i gave you inside counsel for valentis / cd- arthur amron 203 862-7012.. ok-
i guess i will have to get everything done monday and tuesday.. i am out from
the 3-11 as well.. who can i have the rest of the team direct inquiries to in
your absence.. frank?

thanks,
ca

From: Sara Shackleton@ECT on 04/26/2001 09:33 AM
To: Caroline Abramo/Corp/Enron@Enron
cc: Brent Hendry/NA/Enron@Enron, Paul Radous/Enron@EnronXGate, Frank
Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Carol St Clair/HOU/ECT@ECT

Subject: hedge funds

Caroline:

You should have already seen the two ISDA's (Valentis, CD Holdings) emailed
yesterday evening per your instructions.  I am still waiting for you to send
information regarding inhouse/outside legal counsel for both parties.

The Schedule and Paragraph 13 sent to Valentis et al is very much like the
hedge fund template which legal is refining.  We are reviewing the first
draft and commenting.

FYI - I will not be in the office on Friday, April 27.  Also, the Enron legal
conference is next week and the lawyers will be in San Antonio from May 2
(afternoon) through May 4.  And finally, I will be on vacation during the
week of May 7 - May 11.  Please try to make plans (conference calls,
counterparty comments, etc.) accordingly.

Let me know if you have any questions.

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 Ginger Dernehl/HOU/EES on 08/04/2000
10:56 AM ---------------------------

Bruno Gaillard
08/04/2000 10:53 AM
To: SF Office, Paul Kaufman/PDX/ECT@ECT, David Parquet/SF/ECT@ECT
cc: Ginger Dernehl/HOU/EES@EES
Subject: Articles related to vote on UCAN Motion -- No on retail price caps
in SDG&E

PUC approves rebate for S.D. as
legislators urge 'ratepayer rebellion'

-- San Diego Union tribune

http://www.uniontrib.com/news/metro/20000803-991617-powerwoes.html

PUC won't freeze rates

-- Sacramento Bee

http://www.capitolalert.com/news/capalert08_20000804.html

Hundreds Denounce Price of
Electricity
Packed PUC meeting hears pleas
for relief

-- SF Chronicle

http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2000/08/04/M
N57802.DTL


Art:

How are you planning on keeping track of all the trades you do for Citizens
and communicating that info to them?  We need to make sure that all the
billing people have this info so the bills are correct.  My suggestion is
that you maintain a spreadsheet that has all trades and send it to me and the
folks on the e-mail above every time a new trade is done.  Let me know if you
agree.

Chris

	Enron Capital & Trade Resources Corp.

	From:  "Art Gelber" <agelber@gelbercorp.com>
01/04/2001 11:25 AM

To: <Chris.H.Foster@enron.com>
cc:
Subject: RE: Fw: NYMEX fixed prices obtained from Enron

Chris,

Thank you for the conversation the other day.  Gelber's intent is to sit on
the side of AZ Gas and that does not necessarily mean in opposition to
Enron.  I personally hope to work constructively for their benefit, and to
the benefit of Enron, Gelber and others who may be involved.  Sometimes
however, our interests may be contrary and I apologize up front when that is
the case.

I have urged Sean to move ahead on EOL and he is doing so.  Moreover please
provide your fax number and I'll fax you audited financials.

Thanks.

Art Gelber

-----Original Message-----
From: Chris.H.Foster@enron.com [mailto:Chris.H.Foster@enron.com]
Sent: Wednesday, January 03, 2001 8:43 AM
To: agelber@gelbercorp.com
Subject: Re: Fw: NYMEX fixed prices obtained from Enron

Art:

To get you guys up on EOL I need to complete the credit review and then get
master agreements in place.  (I amssume this process has not been completed
with Enron.)

As the first step, please forward financial statements to me in Portland.

Chris

121 SW Salmon
Portland, OR  97204

---------------------- Forwarded by Chris H Foster/HOU/ECT on 01/03/2001
06:39 AM ---------------------------

To:   "Sean Breen" <sbreen@czn.com> @ ENRON
cc:   agelber@gelbercorp.com, Kim Ward/HOU/ECT@ECT
Subject:  Re: Fw: NYMEX fixed prices obtained from Enron  (Document link:
      Chris H Foster)

I had a good "clear the air" talk with Art yesterday.  We came up with a
couple things that will improve the process.

1.  Citizens needs to subscribe to EOL so that Art can execute trades
without calling me or anyone else at Enron.  This will improve execution.
Sean, please make this a priority.  Call the 800 number and make it happen.
Call me if you need help.

2.      Kim Ward will be the point person for gettting NYMEX and Basis
quotes.  Kim's number is 713/853-0685.  I will be helping Kim, but she is
in a better position to execute trades as she is on the desk.

3.  Citizens should consider getting swap contracts in place with
counterparties other than Enron (and Enron as well) so that you can do
fixed price deals with others in the event that you can obtain more
attractive pricing than what Enron is offering at any point in time.

Please let me know if you want further follow-up re: your e-mail below.
Also, please push forward on the 2 contracts (gas contract amendedment and
power contract master).

Thanks

Chris

 (Embedded     Enron Capital & Trade Resources Corp.
 image moved
 to file:      From:  "Sean Breen" <sbreen@czn.com>
 pic07711.pcx) 12/28/2000 03:21 PM

To:   "Chris Foster" <cfoster@enron.com>
cc:
Subject:  Fw: NYMEX fixed prices obtained from Enron

Chris:
Would you kindly call me next week (Tues/Weds is  best) to discuss.? Thanks
----- Original Message -----
From: Art Gelber
To: Sean  Breen
Sent: Thursday, December 28, 2000 4:10 PM
Subject: NYMEX fixed prices obtained from Enron

Sean,

As we discussed on  the telephone today, I have a concern surrounding the
pricing Enron gave  us?while establishing NYMEX fixed pricing for the
months of April 2001, May  2001, June 2001, July 2001 and August 2001.

Today, we first  contacted Enron to obtain market quotes at 10:58 am cst.
In every month we  requested a quote on NYMEX, Enron gave a quote that was
no less than two cents  higher than the offer on the floor of the NYMEX.
Gelber questioned the  quotes as being outside the market.? Gelber chose to
end the telephone call  after questioning the quotes.? At 11:08 am, Gelber
called Enron  again.? The election was made to proceed with execution of
the necessary  positions.? For the months of April, May, June, and August
we received  prices that were at the offer side of the NYMEX bid/offer
spread.? However,  on the month of July the price received was not only
outside of the then current  NYMEX bid/offer range but was indeed higher
than the NYMEX high for the day on  the July contract.? Specifically, the
Citizen's Arizona Gas price received  for July 2001 from Enron is $5.340,
the high for the day on NYMEX was  $5.290.

I do not currently  feel comfortable with Enron's pricing methods.? My
assessment after today's  transactions is only partially favorable.? It is
my understanding that  Citizen's compensates Enron in other parts of your
business relationship and  their should be no need for them to mark prices
up when executing either NYMEX,  basis, or a combination of the two.

Citizen's may want  to consider pursuing alternative mechanism's?for
securing fixed pricing via  other accessible markets.

Sincerely,

Art Gelber
Gelber & Associates
agelber@gelbercorp.com
713/655-7000


E-Schedules are due to Corporate by Monday, October 23.  Could each of you
please make sure you have your schedules to me by Friday morning for review?
Also, could you please respond to this e-mail with which E-Schedules you are
responsible for (if any) so that I can ensure that all have been assigned?

Thanks,
Marnie


my life is mesireable enough, if i am going to go out and be with friends. i dont want to go to fag hang out. find another spot!

-----Original Message-----
From: Brian Constantine [mailto:brianc@saltgrass.com]
Sent: Tuesday, February 26, 2002 11:25 AM
To: Erik Wollam; knipe3@msn.com; chet_fenner@bmc.com;
c.r.zander@att.net; Parks, Joe; john.chambers@bisys.com;
c.r.zander@worldnet.att.net
Subject: RE: MAN NIGHT FINAL PLANS

My Uncle lives an "alternative lifestyle" as well...I really don't much being around him either, but its not b/c of his sexual orientation, or lack there-of. I would enjoy consensus for once, however...

-----Original Message-----
From: Erik Wollam [mailto:erwollam@hotmail.com]
Sent: Tuesday, February 26, 2002 11:22 AM
To: knipe3@msn.com; chet_fenner@bmc.com; c.r.zander@att.net; Joe.Parks@enron.com; john.chambers@bisys.com; Brian Constantine; c.r.zander@worldnet.att.net
Subject: Re: MAN NIGHT FINAL PLANS

Brian has sent the FINAL PLAN and that is where I will be, even if it is
alternative lifesyle night. Last time we went there was a thursday night, no
big deal.

>From: "Brian Constantine" <brianc@saltgrass.com>
>To: "Erik Wollam" <erwollam@hotmail.com>, "Fenner, Chet"
><Chet_Fenner@bmc.com>, <knipe3@msn.com>, <Joe.Parks@enron.com>
>Subject: MAN NIGHT FINAL PLANS
>Date: Tue, 26 Feb 2002 11:07:51 -0600
>
>
>Men,
>
>             The final descision on the night of men will be as follows...
>
>Where: Tony's Mexican (bring your own clown and accessories, please)
>
>When: Thursday 2/28 at 7:15 pm.
>
>We will wait until Zander is able to attend, to try the Tampico place.
>Would rather go w/ someone who knows the drill.
>
>I am very much looking forward to seeing all of you men.
>
>
>               Pig-N-a-Stinky-blanket

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp.


Beth,

OK , I give. Is your intent to delete Section 10.13?  If so,  yes we will
agree.

Thanks for your patience and attention.

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


-----Original Message-----
From: 	"Ryan Lee" <ralee@rmi.net>@ENRON [mailto:IMCEANOTES-+22Ryan+20Lee+22+20+3Cralee+40rmi+2Enet+3E+40ENRON@ENRON.com]
Sent:	Wednesday, August 01, 2001 3:29 PM
To:	Andy Patton; Kerr, Jay; 'Ryan Renz' \(E-mail\); Ruth Hurst; Nick Woods \(E-mail\); merlinm@qwest.net; Lenhart, Matthew; Jason Klimek; Jayson Gill; JAKE Istnick; Haig Newton; Dickinson, Ryan; David Shaw; danielkbrock@hotmail.com; Chris Tuttle; Brian Beggs; Ben Abendroth; Bagby, Joel
Subject:	Fw: click on z link

This is just Fabulous!     Fabbo....

----- Original Message -----
From: Lee, Ryan
To: 'ralee@rmi.net'
Sent: Tuesday, June 26, 2001 2:34 PM
Subject: FW: click on z link
-----Original Message-----
From: Tim Waters [mailto:twaters@viawest.net ]
Sent:  Tuesday, June 26, 2001 12:28 PM
To: Bell, Thomas; Lee, Ryan; Williams, Zach;  briandmeg@rmi.net ;dself@sideshowpost.com ; bhpearson@hotmail.com ; mudrow03@hotmail.com
Subject: click on  z link
>http://www.genetix.com.mt/intro/sam.swf
>
>
Tim  Waters
National Channel Sales
ViaWest Internet Services
Direct:  720-891-1053
Cell: 303-669-7667
Fax: 720-891-1024
Toll free:  877-448-9378 ex:1053twaters@viawest.net


TOWNSEND, JUDITH G,
?
You have been selected to participate in the Mid Year 2001 Performance
Management process.  Your feedback plays an important role in the process,
and your participation is critical to the success of Enron's Performance
Management goals.
?
To complete a request for feedback, access PEP at http://pep.enron.com and
select Complete Feedback from the Main Menu.  You may begin providing
feedback immediately and are requested to have all feedback forms completed
by Friday, May 25, 2001.
?
If you have any questions regarding PEP or your responsibility in the
process, please contact the PEP Help Desk at:
Houston:  1.713.853.4777, Option 4 or email: perfmgmt@enron.com
London:  44.207.783.4040, Option 4 or email: pep.enquiries@enron.com
?
Thank you for your participation in this important process.
?
The following is a CUMULATIVE list of employee feedback requests with a
status of "OPEN."  Once you have submitted or declined an employee's request
for feedback, their name will no longer appear on this list.  NOTE: YOU WILL
RECEIVE THIS MESSAGE EACH TIME YOU ARE SELECTED AS A REVIEWER.
?
Employee Name:
FLETCHER, BRENDA
SINGLA, KIMAT


FYI

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/24/2000
03:28 PM ---------------------------

	Clayton Vernon @ ENRON
	10/20/2000 09:30 AM

To: Vasant Shanbhogue/HOU/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT
Subject: enron's new weather system, courtesy the research dept.

V

Last night, I tested our new system for real-time surveillance and messaging
of the weather, and it delivers the data to desktops throughout the building
more than 6 1/2 minutes before the National Weather Service updates their
webpages. Our current technology was web-scraping these pages via ftp, then
parsing into a database. The impact of these 6 1/2 minutes for the hourly
power traders is enormous- the weather stations upload their data around 53
minutes after the hour, and we can now receive them within 2 minutes later.
We can now re-estimate our nonlinear stack model before the top of the hour,
when hourly power trading begins. Otherwise, we would not have model results
until around 15 minutes after the hour. Notably, hourly power trading is, for
all intents and purposes, concluded by then (they trade for 10-15 minutes and
manage the scheduling for the next 30 or so miutes). So, effectively, we may
now be one *hour* ahead of where we were just a few days ago, in terms of
information. People are very excited up here, from the CTO on down- thanks
for letting it happen.

C


i am serious, you can find one day

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 26, 2001 9:59 AM
To:	Maggi, Mike
Subject:	RE:

are you being serious?  i am not my own boss you forget.

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 26, 2001 9:58 AM
To:	Nelson, Michelle
Subject:	RE:

you tell me, my schedule is pretty open

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 26, 2001 9:57 AM
To:	Maggi, Mike
Subject:	RE:

ok when?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 26, 2001 9:54 AM
To:	Nelson, Michelle
Subject:	RE:

cant we just go for one day

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 26, 2001 9:51 AM
To:	Maggi, Mike
Subject:

they are lighting the tree on wednesday in ny!  we are going to miss it.