COMMODITIES & AGRICULTURE - Soft commodity traders find the going hard.
Financial Times, 07/03/01

GLOBAL INVESTING - Enron looks to make power play in continental Europe.
Financial Times, 07/03/01

COMPANY BUYS SOME ASSETS FROM ENRON FOR $120 MILLION
The New York Times, 07/03/01

Crude Oil Transport Buys Plant, Pipelines from Houston-Based Energy Firm
KRTBN Knight-Ridder Tribune Business News: Houston Chronicle - Texas, 07/03/01

Ads Brawl in a Never-Ending Political Season
The New York Times, 07/03/01

JAPAN: S.Korea SAROK buys 10,000 tns of western aluminium.
Reuters English News Service, 07/03/01

India: FIs, banks favour AES taking over Dabhol
Business Line (The Hindu), 07/03/01

India: MSEB asked to prove confidentiality of Enron papers
Business Line (The Hindu), 07/03/01

India: New power Bill set to free captive generation
Business Line (The Hindu), 07/03/01

India Inc steps up social works, but ...
The Economic Times, 07/03/01

Cheney raised Dabhol issue with Sonia
The Times of India, 07/03/01

CM, Pawar flayed for contradicting views on Enron
The Times of India, 07/03/01

INDIAN FIs READY TO TAKEOVER DABHOL POWER, BUT WILL NOT RUN IT
Asia Pulse, 07/03/01

Three US firms in talks with Indian lenders to take over DPC
Business Standard, 07/03/01

Selected details from state's unedited power contracts, at-a-glance
Associated Press Newswires, 07/02/01

SMARTMONEY.COM: What Will the Second Half Bring?
Dow Jones News Service, 07/02/01

USA: Duke denies using plant to sway Calif. power prices.
Reuters English News Service, 07/02/01

State controller releases unedited power contracts
Associated Press Newswires, 07/02/01

Oregon Lawmakers Pass Bill To Delay Elec Dereg 5 Months
Dow Jones Energy Service, 07/02/01

COMMODITIES & AGRICULTURE - Soft commodity traders find the going hard.
By ADRIENNE ROBERTS.

07/03/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Soft commodity traders find the going hard - Barriers to entry are daunting
and the big incumbents are facing months of adaptation and belt tightening,
says Adrienne Roberts.
Profit margins in soft commodities trading are wafer-thin. "The margins are
to be found between the wallpaper and the wall," said the head of a European
trading business.
"We are barely making a profit in cocoa, and we are one of the biggest
participants in the market," said an executive at a leading London futures
brokerage.
Enron, the largest natural gas and electricity trading house in the US,
announced recently that it is closing its London-based cocoa, sugar and
coffee brokerage business following an internal company review.
Members of the industry think the brokerage, Rudolf Wolff, was failing to
generate enough cash.
"US companies tend to be much more aggressive on the kind of returns they
want from each desk. I'm not surprised Enron decided to pack it in," said a
US trader.
Enron says it is continuing to look into other opportunities in the softs
industry.
Part of the problem is depressed markets, with low prices and thin volumes.
"Coffee is at a 30-year low, cocoa is flat at this time of year - I would say
it's extremely challenging unless you have critical mass," said the head of a
London softs desk. "Merchants are the source of our income. If they're
squeezed, they squeeze everyone."
Business conditions have been particularly difficult, for merchants sourcing
from Cote d'Ivoire, a major coffee producer and the world's largest cocoa
grower. Political upheaval and industry restructuring have reduced the
volumes of stock coming on to the physical market.
"The only answer is greater efficiency; lower costs," said a manager at a
leading soft commodities merchant.
Customers found a way of cutting their brokerage costs late last year when
the London International Financial Futures and Options Exchange took its
commodity products electronic.
Customers can now ask their brokers to provide them with trading screens,
with uncomfortable effects on brokers' execution fees.
A year ago, a client who wanted to buy 10 lots of coffee might telephone his
broker, get some advice, hear the latest on the weather in Brazil or politics
in Cote d'Ivoire, and have his trade executed by the broker.
Now the client might connect directly to Liffe, put through his own trade
electronically and receive the documentation via the web. He may not speak to
his broker at all.
Brokers earn a fee for providing the screens, but not as much as they would
from execution.
"Margins are under tremendous pressure in the futures business because of the
move to electronic trading," said an executive at a London bank.
"You're seeing the tip of the iceberg now. If electronic trading is having
such a major effect on brokers in the softs market, what does it mean when
metals and energy go electronic?"
The execution and advice functions, once part of the same package, have been
separated. The question of where these clients will go for advice and what
they are prepared to pay for it has not yet been answered.
"The key to this business is volume," said Brian de Clare at ABN Amro. "Your
incremental cost is negligible - putting through 100,000 lots costs pretty
much the same as 500,000 lots. High volumes, in conjunction with good
service, will determine who's going to get the lion's share of the business
and who won't."
ABN Amro is one of the few participants in the industry that is expanding its
softs business and recruiting.
Brokers think more people will begin dropping out of the market and there
will be consolidation among those in the industry. There are rumours that
Truxo, which belongs to the Neumann group, is thinking of withdrawing from
clearing customer business.
Head counts have come down since the demise of the open outcry trading pit,
but some businesses are looking to streamline further.
Commodities brokers that trade on the floor might have from four to seven
support staff to each trader. In the softs business "we're now starting to
see that people who were in the office are not needed to the same degree
because people have got their own screens", said one.
There is not much relief in sight. For smaller brokers, the barriers to entry
are increasingly daunting. For the big incumbents there may be many months of
adaptation and belt tightening ahead.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

GLOBAL INVESTING - Enron looks to make power play in continental Europe.
By JULIE EARLE.

07/03/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Ten years ago Enron, the US energy giant, derived its profit purely from its
home market and from a few projects in the UK. It operated pipelines and
produced power.
Today, the Houston-based company has recreated itself as a global energy
merchant, selling and delivering gas and electricity, and its profits are
increasingly produced offshore.
Having consolidated its position in the UK, Enron is making a big push into
continental Europe to capture the growth potential in deregulating energy
markets.
The company moved into the energy selling business with the deregulation in
the US of gas in 1994 and electricity in 1996. It now has projects in more
than 40 countries. The change in strategy, away from owning infrastructure
and towards energy selling, has seen its earnings drift away from pipelines
in the US towards a rapidly growing wholesale gas and power business.
Enron does not release its revenue breakdown but it is clear from its volumes
that the wholesale unit - which involves energy trading and marketing and
risk management services - generates about 85 per cent of the company's
profits.
A third of the company's wholesale business comes from Europe, including the
UK, and Enron is focused on growing in France and Europe as a whole. Its
pipeline business in the US, once the engine of its growth, now comprises
four interstate natural gas pipelines and represents less than 10 per cent of
earnings.
Enron uses its assets to supply customer power needs. It also has power
stations in the US, UK, Italy, Poland, Turkey and Spain.
Enron is aggressively eyeing Germany, France, the UK and the Nordic region
for opportunities offered by deregulation.
The company has seen growth quadruple in its wholesale business in Europe in
the past year alone. Enron does not reveal a geographical breakdown of its
revenue but its physical volumes of gas traded in Europe leapt from 2,469bn
btu (British thermal units) of gas a day in the first quarter of 1999 to
8,699bn btu in the same period a year later.
Growth in electricity traded was even stronger, jumping from 7,844 megawatt
hours in 1999 to 36,339 in the first quarter of last year. Those figures also
include small gas and electricity volumes for Australia and Japan, which are
relatively new markets for Enron.
Ray Niles, an analyst for Salomon Smith Barney in New York, says that while
the UK was important, continental Europe was the key prize. The total gas
power market in the US is worth $300bn in revenue while Europe is worth
$250bn. Analysts will be looking to Enron's second quarter results, due on
July 12, after the company posted $406m in first-quarter profits, a 20 per
cent increase. Key areas of interest are likely to centre on its wholesale
business in Europe.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

Business/Financial Desk; Section C
COMPANY NEWS
COMPANY BUYS SOME ASSETS FROM ENRON FOR $120 MILLION
Reuters

07/03/2001
The New York Times
Page 4, Column 1
c. 2001 New York Times Company

EOTT Energy Partners said yesterday that it paid $120 million for energy
assets from affiliates of the energy marketer and trader, Enron. EOTT, based
in Houston, has bought a hydrocarbon processing complex in Morgan's Point,
Tex., and a liquids pipeline grid system, as well as a natural gas liquids
storage facility. EOTT also entered into a 10-year agreement for production
from the hydrocarbon processing complex, and arranged a 10-year storage and
transportation agreement for use of the pipeline and storage systems. Dana
Gibbs, president of EOTT Energy Corporation, a general partner of EOTT Energy
Partners, said that the acquisition would add to earnings.

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

Crude Oil Transport Buys Plant, Pipelines from Houston-Based Energy Firm
Nelson Antosh

07/03/2001
KRTBN Knight-Ridder Tribune Business News: Houston Chronicle - Texas
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

EOTT Energy Partners said Monday that it is paying Enron Corp. approximately
$120 million for an MTBE plant in Morgan's Point, a natural gas liquids
storage facility in Mont Belvieu and a pipeline grid for carrying the
liquids.
The processing facility, which averages 14,000 to 15,000 barrels per day of
the gasoline additive, properly known as methyl tertiary butyl ether, is one
of the largest plants of its type in the United States. It also produces a
smaller quantity of isobutylene.
The pipeline grid, which totals 240 miles of pipe, connects the storage
facility in Mont Belvieu to the MTBE plant, and to similar plants along the
Houston Ship Channel.
The natural gas liquids storage facility has 10 million barrels of capacity.
Simultaneously with the purchase, EOTT signed a 10-year agreement to sell the
production from the MTBE plant to Enron, plus a 10-year storage and
transportation agreement for the use of the storage facility and pipelines.
This agreement has Enron providing the feedstock and taking the plant's
output, paying EOTT a fee for producing the fuel additive.
The acquisition provides greater diversity for EOTT Energy Partners, which is
a major marketer and transporter of crude, said spokeswoman Gina Taylor. The
deal will boost earnings and provide stable cash flows without exposure to
commodity markets and prices, said Dana Gibbs, the president of EOTT Energy,
its general partner.
The partnership's common units, which are traded on the New York Stock
Exchange, gained 15 cents to close Monday at $18.55.
EOTT Energy Partners is a publicly traded company whose general partner is a
100 percent-owned subsidiary of Enron.

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

National Desk; Section A
Ads Brawl in a Never-Ending Political Season
By ALISON MITCHELL

07/03/2001
The New York Times
Page 13, Column 4
c. 2001 New York Times Company

WASHINGTON, July 1 -- With jittery House Republicans complaining that
President Bush is losing the important opening skirmishes over energy policy,
a political rescue squad has hit the California airwaves.
A new group, the American Taxpayers Alliance, led by Scott Reed, the campaign
manager for Bob Dole's 1996 presidential race, began running 30-second
commercials in California a few weeks ago blaming the state's Democratic
governor for the state's power problems.
''Grayouts from Gray Davis,'' the tagline of the television advertisements
says.
Mr. Reed said his group, whose donors he would not name, had spent $2 million
on the commercials.
Another new coalition is also preparing advertisements on the energy front,
taking on environmentalists for standing in the way of energy production. The
coalition, the 21st Century Energy Project, was assembled by Ed Gillespie, a
former campaign strategist for President Bush. And supporters and opponents
of patients' rights legislation before Congress are taking to the airwaves in
the Congressional recess.
The barrage of commercials shows that the permanent campaign that was the
hallmark of the Clinton years is here to stay. Mr. Bush may have promised to
change the tone in Washington and end the divisive mentality of constant
confrontation, but the year-round media battle over issues and ideas has
never stopped. And some of his former campaign advisers and strategists are
in the fray.
The volume of advertisements was even intense during the first 100 days of
the Bush presidency, usually a time of relative peace in politics.
''There was significantly more television advertising in the first six months
of this administration than there was in the past,'' said Ken Goldstein, a
professor of political science at the University of Wisconsin, who studies
such trends.
The Democratic National Committee is unabashedly on a war footing, although
the size of its advertising purchases -- several hundred thousand dollars'
worth this year -- has not matched the volume of its oratory.
The Democrats marked Mr. Bush's first 100 days with a commercial featuring a
winsome blond tyke holding up a glass and cooing, ''May I please have some
more arsenic in my water, Mommy?'' Last week, the Democratic National
Committee broadcast a new spot, saying, ''Insurance companies. H.M.O.'s. Big
corporations. They've contributed $51 million to Bush and the Republicans.
And now Bush says he'll veto a real patients' bill of rights.''
Terry McAuliffe, chairman of the Democratic National Committee, is boastful
about such early advertising. ''It's never been done before,'' he said,
promising ''a very aggressive full-time campaign.''
The Republican National Committee has so far resisted going on the air so
early before the midterm elections.
''It's a judgment call you have to make -- whether paid media is best to
spend now, next year or whenever,'' said Trent Duffy, a party spokesman.
''You might think it's corny,'' Mr. Duffy added, ''but it's a part of the
president changing the tone.''
One White House official said Mr. Bush's political team did not believe that
commercials this early in a political cycle had any lasting effect. And he
said the fact that an array of industries and Bush allies were on the air
also made it easy for the Republican National Committee to stay quiet.
''If other parties are out there making the same point,'' the official said,
''why spend your own money?''
Federal laws leave issue advertisements largely unregulated unless there is
coordination between a group and a candidate or party. But the standard for
proving coordination is high.
''There are so many reliable allies out there, you don't need to
coordinate,'' said Ken Gross, an expert in election law. ''The party
committee can put up on its Web site what its agenda is and the outside
groups can go to town.''
And so they have, from the earliest days of the Bush presidency. The Sierra
Club went on radio and television in January to fight the nomination of Gale
A. Norton as interior secretary. One advertisement called Ms. Norton ''an
anti-environmental extremist who could divide us, who is out of step with the
majority of Americans.''
The Republican Majority Issues Committee, using mirror-image language,
defended the nomination of John Ashcroft for attorney general with television
advertisements that proclaimed, ''Party partisan extremists won't give our
new president a new chance.''
Some groups choose to give their allies in the White House or Congress a
heads-up when they take to the airwaves. Mark Lampkin, a former aide in the
Bush campaign, informed the White House when a coalition he worked with,
Americans for Better Education, ran two rounds of radio advertisements to
promote Mr. Bush's education program.
''To protect both sides of the equation,'' Mr. Lampkin said, ''we were very
conscious of not discussing these things or having a lot of interaction.''
Stephen Moore, whose Club for Growth ran television advertisements promoting
the president's tax cut, said he deliberately did not have contact with
either the White House or Republican leaders in Congress.
''We want to give them plausible deniability so they can say we have no idea
they are going to attack Specter,'' Mr. Moore said, referring to Senator
Arlen Specter, Republican of Pennsylvania.
One round of the advertisements lampooned, as friends of the Internal Revenue
Service, Republican Senate moderates who were skeptical of the tax cut,
including Mr. Specter, Lincoln Chafee of Rhode Island and James M. Jeffords
of Vermont, before he became an independent.
While the Democrats' positions are often amplified by groups like the
environmental and labor movements, Congressional Republicans have made clear
in recent years that they expect industry allies to be on the air creating
public support for votes in their favor.
A Republican strategist said Representative Tom DeLay of Texas, the majority
whip, had recently told officials of the energy industry that Republicans
were not here to defend them and that they needed to defend themselves. Mr.
DeLay, the strategist said, warned the officials that they were in danger of
losing the public relations war.
Asked about those warnings, Emily Miller, a spokeswoman for Mr. DeLay, said
energy officials were ''one group of many'' that Mr. DeLay had talked to as
energy-policy point man in the Republican leadership.
''Congressman DeLay has been telling everyone about the need for us to do a
better job in communicating our energy message and the need for a
comprehensive national energy policy,'' Ms. Miller said.
Sometimes because of the web of relationships in Washington and minimal
disclosure requirements, it is difficult to tell when an issue advocacy
effort is actually an industry effort.
Mr. Reed says his American Taxpayers Alliance has more than 10,000 donors and
is on a political mission: to shield vulnerable Congressional Republicans
from any blame for how Washington responds to California's energy crisis and
to put the focus on Mr. Davis.
''We could single-handedly lose the House if California gets blown away,''
Mr. Reed said.
Yet it is also the case, several Republicans said, that energy interests have
contributed to Mr. Reed's advertising campaign.
Alex Castellanos, the maker of the advertisements, is the head of National
Media, a firm that also produced a radio and television spot this spring for
Arctic Power, a group pushing Mr. Bush's call for drilling in the Arctic
National Wildlife Refuge.
Mr. Castellanos, who produced the Republican National Committee's
advertisements in the last presidential campaign, said in a brief interview
that he did not discuss his clients.
Mr. Gillespie, whose 21st Century Energy Project is planning a television
campaign, also represents the Enron Corporation, the nation's biggest
electricity trader. He said the two accounts were separate.
He said his group was reacting because it believed that the environmental
groups had been on the air unchallenged.
''There has been a vacuum in the energy debate,'' he said, ''and the liberal
groups like the Sierra Club and the Natural Resources Defense Council, who
are not sufficiently understood to be pawns of the Democratic National
Committee, have had a free ride in this debate.''
Phil Clapp, president of the National Environmental Trust, said
environmentalists started advertising because they had watched industry pour
millions of dollars into such campaigns before.
''We fully expect that on a variety of environmental issues ranging from
energy to the Clean Air Act,'' Mr. Clapp said, ''that we will see these kinds
of industry campaigns, and we felt it was best to be there first.''

Photo: Political contests have long been settled, but commercials on
political issues, like this one attacking patients' rights legislation,
continue.

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

JAPAN: S.Korea SAROK buys 10,000 tns of western aluminium.

07/03/2001
Reuters English News Service
(C) Reuters Limited 2001.

TOKYO, July 3 (Reuters) - South Korea's Supply Administration (SAROK) bought
10,000 tonnes of western primary aluminium ingots late last week from Samsung
Corp and Enron Corp , traders said on Tuesday.
The government procurement body bought 5,000 tonnes from Enron last Thursday
at $1,509 a tonne on a cost-insurance-freight basis to the southeastern port
of Pusan, a trade source in Seoul said.
The administration had bought another 5,000 tonnes from Samsung at $1,501.89
a tonne, CIF, to the western port of Inchon, he said.
Premiums were estimated at about $47-$55 a tonne over the London Metal
Exchange (LME) cash prices, another source said.
Shipment was set for within two months after the suppliers received a letter
of credit from SAROK, he said.

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

India: FIs, banks favour AES taking over Dabhol

07/03/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

BANGALORE, July 2. FINANCIAL institutions (FIs) and banks have indicated that
they would be favourably inclined to a takeover of the Dabhol Power Company's
(DPC) equity by another American energy major, AES. AES has already indicated
that it could takeover Enron's equity and run the power plant.
FI sources said here that this takeover would be in the best interests of all
the parties involved in the project, including consumers. This was in view of
AES's experiences in Orissa. AES operates the Orissa Power Generation
Corporation Ltd in which it has a 49 per cent stake.
AES also runs a distribution company - Centco, in that State.
The sources said that takeover by AES could also help DPC reduce some of the
debt financing costs - both in phase one and phase two. The debt portion in
phase one (826 MW) is about $644 million.
In phase two (1,624 MW) the debt financing component is about $1.414 billion.
All these loans have been raised at interest rates in the region of 250-350
basis points over the LIBOR. In the second phase especially, the debt
financing costs were high since it came close on the heels of the Pokhran
nuclear test.
The sources said that if these loans could be refinanced, then the interest
burden on the project could be brought down substantially.
The sources estimated that given the credit rating of AES in international
financial markets, the DPC loans could be refinanced at spreads of just 100
basis points over LIBOR.
Besides, rates for external commercial borrowings have considerably softened
in the last few months. In fact, the last few loans that have been raised in
the international markets by top Indian corporates without sovereign
guarantees have all been at spreads of under 100 basis points.
The sources said that the AES takeover could also stave off invocation of the
deferred payment guarantees (DPG). In both phases, the guarantee obligations
of the domestic FIs and public sector banks are close to $800 million.
Technically, foreign creditors could invoke these guarantees in the event of
payment defaults by DPC. In addition, FIs and banks have direct exposure of
about $429 million in both phases.
The sources said that invocation of the guarantees and a simultaneous
classification of loans into non-performing assets, would hurt the balance
sheets of the FIs as well as the banks. The banks likely to be impacted
include the State Bank of India and Canara Bank which have participated in
both the foreign currency as well as the rupee loan syndications of DPC.
The sources said that the only alternative to prevent any drastic impact on
the FIs was to either find a resolution to the current stand-off between MSEB
and Enron or allow other companies, acceptable to lending institutions to buy
out the DPC equity from Enron.
The sources said that taking over the management of DPC could be considered
only as a last resort by the FIs. This can be technically done, since the FIs
have a physical asset cover on the fixed assets of DPC on both phase one and
phase two as part of loan and guarantee covenants.
C. Shivkumar

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

India: MSEB asked to prove confidentiality of Enron papers

07/03/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, July 2. THE Maharashtra Electricity Regulatory Commission (MERC) has
given the State electricity board two weeks to prove the confidentiality of
documents related to Enron's Dabhol power project, at the hearing of a
petition filed by Prayas, a Pune- based non-government organisation.
The commission has also asked MSEB to clarify its stand on MERC making the
documents public.
Prayas had filed a petition asking for the status and copies of various power
purchase agreements signed by the board with independent power producers,
including Dabhol Power Company.
MSEB, in turn, had said that DPC had claimed contractual confidentiality over
several documents which could not be made public. MERC had given the board
four weeks to submit the relevant documents.
The commission has now given the board an additional two weeks to submit the
documents.
Our Bureau

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

India: New power Bill set to free captive generation

07/03/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, July 2. THE Union Power Ministry is thinking of completely freeing
captive power generation. Mr Ajay Shankar, Joint Secretary, Union Power
Ministry, said here that the Electricity Bill, which is likely to be
introduced in Parliament "soon", would liberalise captive generation.
"To ensure this, the Centre is in the process of giving guidelines to the
State Governments under the present laws and will provide for it under the
new law," Mr Shankar said.
Mr Shankar urged industry to invest in transmission and distribution to boost
power sector reforms.
Speaking to newspersons after an interactive session with industry
representatives organised by the Indian Merchants' Chamber here on Monday, Mr
Shankar said the Government would push for privatisation of distribution in
the Electricity Bill.
Speaking at the function, the State Energy Secretary, Mr V.M. Lal, said the
Maharashtra State Electricity Board was still the best in the country "minus
Enron". "All the problems created by that project (Dabhol) are coming in the
way of reforming the power sector in the State," Mr Lal said.
Mr Adi Engineer, Managing Director, Tata Power, said the most important thing
in reforming the sector was speed. "Debate alone is not enough.
What we need is speed. And, instead of difficult ones, the Government should
start with easier propositions in transmission and distribution.
For example, islands of industrial activity such as Nagpur could be
privatised first. Besides, the Government should also de-politicise new
projects," he added.
Mr Shankar said the second part of the Montek Singh Ahluwalia report on power
sector restructuring is expected shortly, while an "empowered committee",
including Mr Suresh Prabhu, Union Power Minister, is looking into the
implementation of the first part of the report, he said.
The Secretary declined comment on the "active role of facilitator" being
played by the Centre in the Enron renegotiation process.
He also said that the metering of 11 KV stations across the country would be
completed by March 2002 while metering of other customers would be completed
within two years.
Our Bureau

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

India Inc steps up social works, but ...
Shalini Singh

07/03/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

AT A recent investor meet, Tata Steel MD J J Irani asked his investors if
they felt the company should reconsider its social work profile. The
unanimous response was to step up investments in the area.
The rationale: a social return on capital with a clear impact on the
bottomline.
``You cant be an island of prosperity in a sea of poverty, says Tisco
spokesperson Shakti Sharma. ``It creates a social pressure on the company,
she adds.
A fortnight ago, on June 22, the day after the Kaduldi Express crashed into
the river in remote Kadalundi in Kerala, among the people who rushed to the
site of the disaster were two teams from the Kozhikode operations of the
cellular phone company, Escotel.
And in the dead of night, they set up an antenna on a coconut tree. By
midnight, survivors, rescue workers, medics, policemen and even railway
minister Nitish Kumar were using the jerry-rigged mobile phone infrastructure
to call friends, relatives and colleagues all for free.
On January 26, when Gujarat was flattened in 90 seconds by the earthquake, a
free phone facility set up by Care India, Bharti BT and Cisco for domestic
and overseas calls provided the most immediate emotional relief for relatives
anxious for news about their families.
Increasingly, Corporate India is becoming conscious of being a good citizen.
And its discovering, to its surprise, that this image makeover effort
actually makes a mark on people from all walks of life.
This has driven industry chambers to take time out from lobbying ministers
and hosting cocktail lunches to demonstrate interest in social development.
CII has committed Rs 100 crore to help 26 quake-hit villages in Gujarat. It
has also set up a `disaster management committee this year. And Ficci
partners CARE to rebuild at least 10,000 homes in the state.
With greater corporate involvement in socially helpful activity, CARE has
raised $28 million for the rehabilitation of 30 villages in the worst
affected areas of Gujarat.
Of this, Care India director Tom Alcedo says, Ficci mobilised about 15 to 20
per cent from its members.
This human face of India Inc appears to be confined largely to emergency
relief, though.
In Gujarat, for instance, Alcedo says the corporate sector displayed more
compassion initially, but dropped out in the rehabilitation stage.
But NGOs say firms have realised that long-term social development could
boost bottomlines as well.
The Tata Group understood this long ago the social cell at Tata Steel has an
annual budget of Rs 38 crore, says Mrs Sharma.
Alcedo says, ``Enron got involved in community development in Maharashtra and
Gujarat because it realised that overlooking social development issues in
Dabhol had caused a lot of strife.
Today, corporate compassion is motivated largely by tax breaks and publicity
mileage rather than in sustained community development work which doesnt
attract as much media attention.

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

Cheney raised Dabhol issue with Sonia
The Times of India News Service

07/03/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

NEW DELHI: US vice-president Dick Cheney expressed concern over the ongoing
dispute between the Maharashtra government and US power giant Enron, promoter
of the Dabhol Power Project, during his meeting with Congress president Sonia
Gandhi in Washington, DC, last week.
Senior Congress leader Manmohan Singh, who had accompanied Sonia on her US
visit, briefed presspersons Monday about Sonia's first foreign trip as the
leader of the Opposition. Singh said the reference to Enron came up when
Cheney spoke of the growing Indo-US economic relations and mentioned that
America wanted strong investments in India.
Singh sought to play down the fact that Cheney had evinced such inordinate
interest in the Enron case. ``He brought it up and we explained our position
and the matter was allowed to rest there,'' Singh said. What Singh left
unsaid was that the Enron project being mentioned by an official as senior as
the US vice-president indicates the level of concern in the US about the
viability of India as an attractive foreign investment destination.
Questions about the Enron project were also asked during Sonia's meeting at
the Asia Society, Singh said. ``I explained that one could not wish away the
problems which have arisen. The demand projections have gone haywire while
the cost of tariff has turned out to be much too high, partly because of the
rise in the prices of feedstock and partly due to the depreciation of the
exchange rate,'' Singh recounted. He said he had also clarified that the real
problem was the high cost of tariff and that a mutually satisfactory way of
reducing it had to be found.
Singh said the Congress president's meetings with Cheney and US National
Security Advisor Condoleeza Rice also dwelt on the National Missile Defence
(NMD) programme. Sonia expressed fears it could lead to an arms race in the
region. The Indian side also said that the programme still contains several
uncertain elements which need to be explained. The Congress delegation
pointed out the Chinese, Russians and the Europeans too have their
differences on the issue. The American officials, said Singh, explained that
they were in the process of engaging their allies and the Russians on this
issue.
On the country's economy, Singh said it had slowed down substantially and,
yet, the finance minister had presented a budget pegging the GDP growth rate
at 6.1 per cent while the real figures show a sharp deceleration to 5.2 per
cent.
Singh said the last three years of BJP rule had seen a progressive
deceleration in the GDP growth rate, adding even more worrying was the poor
performance in sectors ranging from agriculture to construction,
manufacturing and services.

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

CM, Pawar flayed for contradicting views on Enron
The Times of India News Service

07/03/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

PUNE: Criticising chief minister Vilasrao Deshmukh and NCP president Sharad
Pawar for adopting extreme stands on the Enron imbroglio, former deputy chief
minister and senior BJP leader Gopinath Munde has said his party did not have
any objection to a thorough probe into the entire power supply deal.
Addressing a press conference here, Munde said Deshmukh and Pawar had
complicated the Enron issue by constantly airing their views despite the fact
that the Godbole committee was in the middle of negotiations with the U.S.
power major to reduce the tariff.
"While Deshmukh says that he will not tolerate the arm-twisting tactics of
the power company, Pawar threatens to agitate if the project is scrapped.
Such extreme stands will hamper the efforts of the Godbole committee while it
holds deliberations with Dabhol Power Company," Munde said.
To a question, Munde said he did not anticipate the NCP withdrawing support
to the Congress-led coalition government in the state over the Enron issue.
"Although Pawar did mention the possibility of his party pulling out from the
government initially, he himself made statements to the contrary some days
later," quipped Munde.
Speaking on the furore created in the Pune Municipal Corporation due to the
ruling party's proposal to remove the portrait of Rashtriya Swayamsevak Sangh
founder Hedgewar, he said the Congress was behaving in a vindictive manner.
Given the fact that Hedgewar's portrait was put up after a resolution to this
effect by the general body of the corporation, the Congress did not have the
power to arbitrarily order its removal, he added.
Munde refuted allegations that former minister and scion of the royal family,
Udayan Raje Bhosale, indicted in the Sharad Leve murder case, was let off due
to a weak case filed by the home ministry during his regime. "The case and
the charge-sheet against Bhosale were filed by the Democratic Front
government when Chhagan Bhujbal was home minister," he clarified.
Asked to comment on the arrest of all BJP corporators in the Nagpur Municipal
Corporation in the infamous sports goods scam, Mr Munde said the Democratic
Front government was misusing the Nand Lal committee report with a political
agenda in mind. "As many as 13 corporators not named in the report have also
been arrested. The technical mistakes on the part of the corporators have
been brought out as unfair practices," he said.
Similar probes should then be conducted in civic bodies in Pune and
Pimpri-Chinchwad also, where the Congress and NCP have the majority, he
demanded.

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

INDIAN FIs READY TO TAKEOVER DABHOL POWER, BUT WILL NOT RUN IT

07/03/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

NEW DELHI, July 3 Asia Pulse - Industrial Development Bank of India (IDBI)
said on that Indian financial institutions were ready to take over the
troubled US$3 million Dabhol Power Company (DPC) if its promoters Enron
pulled out, but said FIs would not run the company.
"In the worst circumstances (Enron pulling out), we can takeover the power
project," IDBI S C Chakravarti told reporters here.
He, however, said the FIs would not run the company. An operations and
maintenance contractor would be appointed to run the show.
Enron has threatened to walk out of the 740 MW Phase-I, which is operational,
and 1444 MW Phase-II to be commissioned shortly, project over payment
disputes with Maharashtra State Electricity Board (MSEB).
Chakravarti said three US energy companies have expressed interest in taking
over DPC, but refused to divulge further details.
Indian financial institutions were due to meet in Delhi Monday evening to
discuss the future course of action.
Asked about the Central bailout package, involving sale of power from DPC to
energy deficit states, Chakravarti said he was unaware of developments and
would not be able to comment on it.
(PTI) 03-07 1007

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

Three US firms in talks with Indian lenders to take over DPC
Our Economy Bureau NEW DELHI

07/03/2001
Business Standard
2
Copyright (c) Business Standard

Three US electricity generation companies are in talks with Indian lenders
for taking over the operations of Enron-promoted Dabhol Power Corporation,
top financial institution executives said.
Industrial Development Bank of India chairman S K Chakraborti said that these
generation companies have approached Indian lenders who are keen on the
completion of the project.
But, he declined to name the companies saying talks have just been initiated.
The lenders, who earlier had a cover on assets, have also taken control of
the DPC's equity which can be used as security.
AES has already evinced interest in the project and is learnt to have
initiated talks with the power ministry and IDBI, the lead institution for
the DPC.
"We are prepared to take over Enron's stake if it decides to pull out. We
would not run the company but the operations and maintenance contractor would
be appointed to run the show," he said
Enron has threatened to walk out of the 740 mw phase-I, which is operational,
and 1,444 mw phase-II to be commissioned shortly.

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

Selected details from state's unedited power contracts, at-a-glance

07/02/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

Here's some of the details from the state's unedited power contracts,
at-a-glance:
- Controller Kathleen Connell releases unedited version of power contracts
Gov. Gray Davis sought to keep secret.
- She releases 41 contracts with 27 power generators. Four are short-term
contracts, the balance are long-term.
- Most of the long-term contracts are for 10 years; one is 20 years.
- The state paid as much as $410 per megawatt hour under the contracts.
- Most contract prices are from $70 to $200 per megawatt hour, Connell says.
- The state has paid $402.6 million toward the long-term energy contracts to
date.
- The state paid at least $2.8 million to energy consultants, including
former industry officials such as Davis chief energy adviser S. David
Freeman, who have been negotiating the state's long-term power contracts.
- Los Angeles Department of Water and Power offered two consecutive 30-day
contacts starting March 1, totaling $57.9 million. The municipal district
provided a constant flow of 167 megawatts in March and 250 megawatts in
April. One megawatt is roughly enough power for 750 homes.
- Houston-based Enron Power Marketing Inc. sold a steady stream of 200
megawatts, 16 hours a day, six days a week in March and April. In its
contract, Enron required the state to pay its bill once a week.
- "Please pay the amount above. Thank you," a Dynergy Power Marketing Inc.
officials wrote neatly on one $1.76 million invoice.

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

SMARTMONEY.COM: What Will the Second Half Bring?
By Rebecca Thomas

07/02/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Of SMARTMONEY.COM

AS THE DOORS closed on the second quarter, investors found themselves in
nearly the same situation as in the first three months of the year. The U.S.
economy is barely growing, and corporate profits remain in recession. Lower
interest rates and tax rebates will inevitably bring relief sooner or later,
but the emphasis is now on later.
Yet many of our pundits insist they see sunshine poking through the clouds.
They'll be the first to acknowledge that the implosion in corporate profits
has been painful, but they're quick to add that the equity market tends to
lead the business cycle recovery by three to six months. Investors who get in
now - though they're assuming substantial risk - stand to reap the greatest
rewards if the economy recovers any time in the second half of this year,
they promise.
"If the U.S. is in recession now, and if the market turns up five months
before the recession ends (which has been the average), then the stock market
is OK if the recession ends by October," says ISI Group chief economist Ed
Hyman, typically one of our most bearish pundits. Adds the generally upbeat
Thomas Galvin, chief investment strategist at Credit Suisse First Boston:
"Once the [economic] data points change, which I think they're in the process
of doing, everyone and their mother will be back in the market."
Of course, there's no denying that conditions worsened in the second quarter
and remain inordinately weak. The deterioration in corporate profitability
and capital spending, as well as slowing consumer spending and sluggish
growth abroad, continue to make the threat of recession a real concern. As
UBS Warburg's Ed Kerschner, our No. 2- ranked pundit, puts it: "No doubt
about it - it's nasty out there."
Our pundits have adjusted their profit estimates to reflect this reality.
Kerschner now expects second-quarter S&P 500 operating earnings to fall at
least 14.4% below year-ago levels. "[T]his looks like the worst quarter of
the profit cycle," he says. And the next two quarters might not be that much
better, according to Ed Yardeni. On June 25, the chief investment strategist
at Deutsche Banc. Alex Brown lowered his full-year S&P 500 profit estimate to
$47 - reflecting a 14% year-over-year decline. Kerschner is the first Wall
Street strategist to project earnings below $50 a share. Given the dreary
near-term outlook, it's hard to blame investors for their wariness. Goldman
Sachs guru Abby Joseph Cohen, for one, recognizes that investors who are
often eager to pay up for potentially good news when the market is rising
become reluctant to assume the same risk in periods of uncertainty. Galvin is
equally understanding: "Investors are not bankrupt, but sentiment is clearly
broke," he says. "Today the average money-market fund rarely yields 4%, yet
most investors are happy to sit on cash." Indeed, investors currently hold
$2.1 trillion in money-market funds - the highest level ever as a percentage
of the market value of the Wilshire 5000 - and savings-account deposits are
up 14% from last year, Galvin says. But if our pundits sympathize with
investors' blas, attitude about stocks, they're definitely out to change it.
Those who wait too long to get back into the market stand to lose out on
potential profits in the end, they explain. "Many investors would prefer to
wait until favorable price momentum returns to stocks," says Cohen in
reiterating her belief that share prices and price-to-earnings multiples for
many companies have already fallen to attractive levels relative to growth
expectations. "We would rather make an early call, allowing our investing
clients an opportunity to structure portfolios accordingly."
Elaine Garzarelli, the chairwoman of Garzarelli Capital, agrees: "Eventually
there will come a point when analysts revise down their estimates too much
and then must rush to revise up when the economy snaps back...Because of
this, we believe this is a good time to invest before upward revisions
begin."
Lehman Brothers' Jeffrey Applegate is of similar mind. In his opinion, the
broad market is actually 15% undervalued at current levels, despite being up
12% since its last trough on April 4. Historically, equity returns have
averaged 17% in the 12 months from this level of undervaluation, he says.
Because cyclical stocks - such as retailers, financials and technology - tend
to perform best in the early stages of a market recovery, the strategist last
week boosted the economic sensitivity of his U.S. equity portfolio.
Specifically, he increased his position in Internet-infrastructure software
maker BEA Systems (BEAS) and storage king EMC (EMC), bringing his overall
technology weighting to 24%. In the consumer-cyclical sector, Applegate
snatched up more shares of homebuilder D.R. Horton (DHI), jewelry juggernaut
Tiffany (TIF) and Viad (VVI), a provider of products and services in money
orders and payment processing. And in the financial industry (which accounts
for a whopping 29% of his portfolio), Applegate replaced leasing- and
financial-services provider GATX (GMT) with the more interest-rate receptive
consumer-finance firm Household International (HI). To pay for his purchases,
Applegate sold off a few defensive names - including AES (AES), Enron (ENE),
Calpine (CPN) and Dynegy (DYN) - in energy and utilities. Knowing which
companies to avoid in this nasty environment is also part of the game, says
Kerschner, who screened out 37 companies that have the "dubious distinction"
of having failed to meet Wall Street consensus estimates at least three times
over the past five quarters. These companies, explains the strategist, "did
not successfully play the time-honored game of assiduously guiding down
analysts' estimates during the quarter and then triumphantly meeting or
beating the final figure." Among the tainted 37 are US Airways Group (U),
Bank One (ONE), Computer Sciences (CSC), American Home Products (AHP),
Charles Schwab (SCH), Halliburton (HAL), Harrah's Entertainment (HET),
McDonald's (MCD), Novell (NOVL) and Newmont Mining (NEM).
As the second quarter ushers in the third, it's important to remember that
things could indeed still get worse before they get better. But take note:
It's during times like these that the early bird catches the worm.
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.

USA: Duke denies using plant to sway Calif. power prices.

07/02/2001
Reuters English News Service
(C) Reuters Limited 2001.

SAN FRANCISCO, July 2 (Reuters) - Duke Energy, one of California's big,
independent power generators, laid out on Monday written records it said
prove it did not shut its San Diego power plant last winter to jack up
electricity prices.
Charlotte, N.C.-based Duke said any fluctuations in generation last winter at
its 700 megawatt, gas-fired South Bay plant were ordered by the California
Independent System Operator (ISO), the agency that oversees operation of the
state's power grid.
"Records from the ISO's Automatic Dispatch System demonstrate that Duke
Energy Trading and Marketing received instructions from the ISO for
increasing and decreasing the power output from the South Bay plant," the
company said in a statement.
California has petitioned the Federal Energy Regulatory Commission (FERC) to
order $9 billion in refunds from power companies it claims took advantage of
the state's energy crisis to "gouge" the market, pushing wholesale prices up
tenfold over the past year.
Duke has repeatedly denied it tried to manipulate prices, citing plant
maintenance, strict pollution rules, soaring natural gas prices and the
financial risks linked to doing business with California's cash-strapped
utilities as the main reasons behind the state's volatile spot power prices.
Duke, together with Dynegy Inc. , Enron Corp. , Williams Cos Inc. , and
Reliant Energy , is currently being investigated by state and federal
officials to determine whether they manipulated the market by witholding
power.
Three former South Bay plant employees last month told a California senate
hearing that Duke had instructed them to ramp down generation at the plant at
times when the state's electricity reserves were extremely low.
The three workers were hired by Sempra Energy's utility subsidiary San Diego
Gas & Electric and remained at the plant after it was sold to Duke in 1998.
They were eventually let go by Duke as part of the plant takeover.
Earlier Monday, Duke said it was trimming $20 million from the bills it
presented to the ISO and California Power Exchange for energy sales to the
two this past January and February.
The move implements a June 19 FERC order that Duke Energy "offset any
invoiced amounts above the proxy price set for electricity," which was set at
$273 per megawatt hour for January and $430 for February.

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

State controller releases unedited power contracts
By JENNIFER COLEMAN
Associated Press Writer

07/02/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SACRAMENTO (AP) - State Controller Kathleen Connell released unedited
versions of $43 billion worth of long-term energy contracts with 27 power
generators on Monday, including several short-term deals whose release the
Davis administration warned could drive up prices.
The 41 contracts released Monday were the subject of a court fight between
Democratic Gov. Gray Davis, Republican legislators and news organizations
including The Associated Press.
For months, Davis had refused to release details of long-term contacts the
state has signed with electricity providers, saying the documents needed to
remain secret. The state began negotiating the contracts in January after the
state's three private utilities were unable to secure credit to buy power.
On June 15, Davis released 38 long-term contracts, but they had key portions
blacked out. The news organizations then sued to have the complete contracts
released.
Steve Maviglio, spokesman for Davis, said the administration had agreed
Friday to release the long-term contracts, but asked to have the release of
the short-term contracts delayed for three months.
The four short-term contracts Connell released Monday, which range from days
to months, reveal more of the state's strategy for buying on the spot market,
said Maviglio and Department of Water Resources spokesman Oscar Hidalgo.
Revealing that could lead to higher wholesale prices, Maviglio said.
"It shows the irresponsibility of the controller and every California who
gets a higher electricity bill can thank Kathleen Connell," Maviglio said.
The newly released documents show which companies are selling power to the
state, how much they are charging and where it is generated.
Two of the short-term contracts included 30-day contacts with the Los Angeles
Department of Water and Power that totaled $57.9 million. The municipal
district provided a constant flow of 167 megawatts in March and 250 megawatts
in April. One megawatt is roughly enough power for 750 homes.
"We still feel that those will hinder our leverage in gaining reasonably
priced power on the spot market," Hidalgo said. "It shows our position on the
daily spot market and what we're willing to pay."
Generators can use that information to time their sales and drive up their
prices, Hidalgo said.
Another short-term contract was with Houston-based Enron Power Marketing
Inc., which sold a steady stream of 200 megawatts, 16 hours a day, six days a
week in March and April. In its contract, Enron required the state to pay its
bill once a week.
"It is not unusual. The state had never been in this type of position. They
wanted to be sure they got some sort of payment," Hidalgo said. "You'll
notice, though, that we haven't dealt with Enron since. There's no deals
pending, and they're a very big player."
Connell said her initial analysis of the contracts she released was that the
average price per megawatt was higher than the governor's estimate of $70.
But Maviglio said the administration's math was correct.
"Given the controller's track record in assessing the work we've done this
far, I wouldn't give much weight to her guesswork," he said. "The governor
and the treasurer have consistently proven her wrong on every one of her
claims."
Mike Wilczek, senior western power market reporter for Platts, the energy
market information division of The McGraw-Hill Companies, said much of the
information in the contracts would be more valuable to the companies'
competitors than to the public.
"It's very clear why you'd want to keep that stuff secret," he said.
Competitors will be particularly interested in delivery points, the power
plants that will supply electricity to a particular delivery point, and the
heat rates.
Heat rates, for instance, "tells them how efficient the plant is," Wilczek
said. "You can look at this stuff and say, 'That's as low as they can go"' in
pricing their electricity at that plant.
"That's probably the most sensitive information," he said.
Knowing which plant supplies which delivery point could affect prices for
that particular generator. For instance, if a competitor knows a particular
plant is down, and the supplier is contractually responsible for sending
power to that distribution point, "they're going to take advantage of that,"
he said.
Connell said the judge heard all the evidence before ordering the complete
contracts released and "there is no reason that information should raise
prices. Today's prices aren't going to be affected by prices engineered
several months ago."
Public Utilities Commissioner Richard Bills said the terms of the contracts,
most of which are 10 years, are too long.
By signing long-term contracts in a volatile market like this, Bills said,
"the result could well be that we get burned because we've entered in too
long an agreement at prices that will be well above market as these contracts
mature."
In addition to the energy contracts, Connell also released documents showing
the state has paid $402.6 million toward the contract totals.
The state also paid various energy consultants $2.8 million. Those contracts
include payments to several industry officials who have been negotiating the
state's long-term power contracts, such as S. David Freeman, the governor's
chief energy adviser.
---
Editors: AP Writer Don Thompson contributed to this report.

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

Oregon Lawmakers Pass Bill To Delay Elec Dereg 5 Months
By Jessica Berthold
Of DOW JONES NEWSWIRES

07/02/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

LOS ANGELES -(Dow Jones)- The Oregon House of Representatives Sunday approved
a bill delaying the partial deregulation of the state's electricity industry
by five months, a spokesman for the Oregon Public Utilities Commission said
Monday.
The bill, which passed 53-6, sets a date of March 1, 2002, for large business
customers of Enron Corp.'s (ENE) Portland General Electric Co. and Scottish
Power's (SPI) PacifiCorp to begin choosing their own electricity suppliers.
Those customers can also opt to retain regulated rates until July 2003, said
OPUC spokesman Bob Valdez.
Delaying deregulation until March will ensure the state gets through its
high-demand winter months without the possibility of glitches caused by the
new system, Valdez said.
Residential and small business customers would continue to have regulated
rates. The governor is expected to sign the bill, Valdez said.
The House was originally scheduled to vote on the bill last Monday, but
Democrats boycotted the state's Capitol for a week in protest of a Republican
redistricting plan.
The OPUC will determine by late July which customers qualify as large
businesses, Valdez said.
The new start date ensures customers won't mistakenly attribute an unrelated
rate increase, also planned for Oct. 1, to the start of deregulation. The
rate hike is necessary, because the Bonneville Power Administration, a
federal hydropower marketer which sells to the state's utilities, has raised
its rates to cover the cost of buying more power than usual in the
high-priced spot market to meet burgeoning customer demand.
"I think the utilities are pretty happy," Valdez said. "I don't know that
they were quite ready, with billing and such, for restructuring by Oct. 1."
-By Jessica Berthold, Dow Jones Newswires; 323-658-3872;
jessica.berthold@dowjones.com

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


NETWORK WORLD NEWSLETTER: JEB BOLDING on
APPLICATION SERVICE PROVIDERS
01/30/02
Today's focus: How much is too much?

Dear Wincenty Kaminski,

In this issue:

* Inflow finds that smaller is better
* Links related to ASPs
* Featured reader resource

_______________________________________________________________
This newsletter sponsored by
VeriSign - The Value of Trust

Do you need to encrypt all your online transactions? Secure
corporate intranets? Authenticate your Web site? Whatever
security your site needs, you'll find the perfect solution in
this FREE Guide from VeriSign, "Securing Your Web site for
Business." Get your copy today to learn the facts!
http://nww1.com/go/3860213a.html
_______________________________________________________________
MANAGING APPLICATIONS AND INTERNET TRAFFIC GIVING YOU A
HEADACHE?

See what industry leaders are doing to get relief when you
watch the "Smart & Secure Application Traffic Management"
webcast. Sponsored by F5 Networks and produced by ITworld.com
and Network World. http://nww1.com/go/0128F5_06.html

_______________________________________________________________
Today's focus: How much is too much?

By Jeb Bolding

In October I talked about Relera, which at that time, announced
that it was getting out of the managed-services business.
Before it made the announcement I visited its Internet data
center in Denver and what comes to my mind when I think about
the discussion I had with its CEO, and my impression of the
facilities is one word: scale.

Everything was about having the best partners, the biggest data
center, massive systems redundancy rates, etc. No doubt, there
is a place for that corporate mentality, and Relera's focus on
scale should be a comfort to many enterprise companies. Relera
may have just been unfortunate with its timing in the market
and it may yet be successful with its focus.

As a counterpoint, yesterday I visited another local Internet
data center provider, Inflow. Like Relera, Inflow is
headquartered in Denver, and like Relera, it is focused at
second-tier cities such as Nashville and Minneapolis, though it
does have some first-tier city locations.

The similarities, in my opinion, end there. Inflow's corporate
esprit de corps seems to revolve around "smaller is better."

As an example, the data centers are smaller, somewhere between
20,000 and 30,000 square feet. Not only does this bring data
center profitability sooner based upon allocated space, but it
also gives, in the words of Inflow executives, a more personal
touch to the relationship between the data-center managers and
Inflow's customers.

Further to this point, instead of effectively building its own
substations, Inflow ensures that each of its data centers
(there are three in Denver) are located on different power
grids. While this may not put you in complete control over your
own destiny, it's a reasonable, and cost-efficient solution
based upon the statistical likelihood of a disaster.

While Inflow's costs are considerably less, the features of its
facilities do not appear to be diminished.

All data centers are mirror images of one another (other than
the square footage), so that a customer walking into a
Nashville facility will be just as at home in a Denver center.

All the services, from simple co-location, to managed security
services and monitoring, are replicated similarly across the
various locations.

And your single operational account representative is your
focal service point regardless of how many Inflow data centers
you're in. Management is fully integrated between the data
centers so that your customer representative does not have to
be local to your issues in order to solve them.

No doubt, there is a place in the business world for Relera and
Inflow. Inflow may have just lucked out that its focus on costs
will help the company better weather a long downturn.

_______________________________________________________________
To contact Jeb Bolding:

Jeb Bolding is senior consultant with Enterprise Management
Associates in Boulder, Colo., an analyst and market research
firm focusing exclusively on enterprise management. Bolding has
10 years of experience in the network systems industry, most
recently with eCollege.com, an ASP for higher education, where
he was director of product development. He can be reached at
mailto:jbolding@enterprisemanagement.com.
_______________________________________________________________
Get your wireless service from the carrier ranked #1 by Forbes
magazine.  Now get Unlimited Night & Weekend Minutes, plus up
to $165 in savings when you activate on select calling plans
and purchase a Nokia 3360 or 8260 from AT&T Wireless. To learn
more go to http://nww1.com/go/ad207.html
_______________________________________________________________
RELATED EDITORIAL LINKS

Relera pulls out of MSP market
Network World ASP Newsletter, 10/15/01
http://www.nwfusion.com/newsletters/asp/2001/01052526.html

EDS exploits shifts in hosting arena
Network World, 01/28/02
http://www.nwfusion.com/news/2002/128045_01-28-2002.html

AT&T spells out international strategy
Network World, 01/28/02
http://www.nwfusion.com/news/2002/129527_01-28-2002.html

Breaking ASP news from Network World, updated daily:
http://www.nwfusion.com/topics/asp.html

Archive of the ASP newsletter:
http://www.nwfusion.com/newsletters/asp/index.html
______________________________________________________________
FEATURED READER RESOURCE

Network World Fusion's The Edge site

Network World Fusion's The Edge is a resource devoted to the
advances in service-provider networks that are shaking up the
old telecom order. In classic Network World fashion, we focus
on the hardware, software and services coming to market - but
this time from the vendors targeting legacy carriers, new
alternative local carriers, ISPs and application service
providers. http://www.nwfusion.com/edge/index.html
_______________________________________________________________
May We Send You a Free Print Subscription?
You've got the technology snapshot of your choice delivered
at your fingertips each day. Now, extend your knowledge by
receiving 51 FREE issues to our print publication. Apply
today at http://www.nwwsubscribe.com/nl
_______________________________________________________________
SUBSCRIPTION SERVICES

To subscribe or unsubscribe to any Network World e-mail
newsletters, go to:
http://www.nwwsubscribe.com/news/scripts/notprinteditnews.asp

To unsubscribe from promotional e-mail go to:
http://www.nwwsubscribe.com/ep

To change your e-mail address, go to:
http://www.nwwsubscribe.com/news/scripts/changeemail.asp

Subscription questions? Contact Customer Service by replying to
this message.

Have editorial comments? Write Jeff Caruso, Newsletter Editor,
at: mailto:jcaruso@nww.com

For advertising information, write Jamie Kalbach, Director of
Online Sales, at: mailto:jkalbach@nww.com

Copyright Network World, Inc., 2002

------------------------
This message was sent to:  vkamins@enron.com


Shirley,

Can you, please, send my itinerary to Ludmila?

ludkam@aol.com

Vince


Will do.

John Viverito
Phone (713) 345-7814
Fax       (713) 646-3490
e-mail John.Viverito@enron.com

	Alan Aronowitz@ECT
	03/09/2001 02:44 PM

		 To: John Viverito/Corp/Enron@Enron
		 cc: Nony Flores/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT
		 Subject: URGENT REQUEST: PLEASE REVIEW AND APPROVE NEW PRODUCT TYPE
(ENRONONLINE)

Please handle this request. It looks very similar to the exchage product we
just signed off on.Thanks.
----- Forwarded by Alan Aronowitz/HOU/ECT on 03/09/2001 02:43 PM -----

	Tana Jones
	03/09/2001 10:48 AM

		 To: Alan Aronowitz/HOU/ECT@ECT
		 cc:
		 Subject: URGENT REQUEST: PLEASE REVIEW AND APPROVE NEW PRODUCT TYPE
(ENRONONLINE)

----- Forwarded by Tana Jones/HOU/ECT on 03/09/2001 10:48 AM -----

	Robert B Cass
	03/09/2001 10:43 AM

		 To: Mark Taylor/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Jeff Blumenthal/HOU/ECT,
Susan Musch/ENRON_DEVELOPMENT, Bjorn Hagelmann/HOU/ECT, Shifali
Sharma/NA/Enron
		 cc: Lisa Lees/HOU/ECT@ECT, Stephanie Sever/HOU/ECT@ECT, Tana
Jones/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Kelly Lombardi/NA/Enron@Enron,
Tara Sweitzer/HOU/ECT@ECT, Dawn C Kenne/HOU/ECT@ECT, Torrey
Moorer/HOU/ECT@ECT, Chris Walker/HOU/ECT@ECT, Kevin
Meredith/Corp/Enron@ENRON, Melba Lozano/HOU/ECT@ECT, John
Viverito/Corp/Enron@Enron, Nony Flores/HOU/ECT@ECT
		 Subject: URGENT REQUEST: PLEASE REVIEW AND APPROVE NEW PRODUCT TYPE
(ENRONONLINE)

Your review and approval of the following product type in the EOL Datamanager
is needed (for directions on approval , please see steps for approval at the
bottom of this e-mail). If you have any questions please call me at ext.
35491.

Please do not approve product types in Datamanager between 7:30 - 10:00 am.
Please grant approval no later than 12:00 noon on March 14, 2001.

Trader: Robert Fuller

New Product Type:   US Crude WTI Phy Exchange (Platts Indexed Commodities)

EXAMPLE:

US WTI Phy Exch  Platts WTI / ANS        Month/Yr           USD/bbl

Product Type Long descripton:
A US Crude Transaction with Enron Reserve Acquisition Corp. (ERAC), under
which (A) where ERAC is the Buyer,  ERAC shall sell and deliver  to
Counterparty and Counterparty  shall purchase and receive a quantity of West
Texas Intermediate crude oil deemed gravity 40 API ("WTI") at Cushing,
Oklahoma U.S.A. TEPPCO Crude Pipeline, L.P. ("Cushing") equal to the volume
submitted by the Counterparty via the Website for delivery during the term of
the Transaction, and  Counterparty shall sell and deliver to ERAC and ERAC
shall purchase and receive the same volume of Exchange Product in equal parts
for delivery during the term of the Transaction; and, (B) where ERAC is the
Seller, Counterparty shall sell and deliver to ERAC and ERAC shall purchase
and receive  a quantity of WTI at Cushing equal to the volume submitted by
the Counterparty via the Website for delivery during the term of the
Transaction, and ERAC shall sell and deliver  to Counterparty and
Counterparty shall purchase and receive the same volume of Exchange Product
in equal parts  for delivery during the term of the Transaction.  The price
for WTI shall be the midpoint of the daily first line quotations for
(WTI/(MONTH) under the heading "U.S. $/Bbl" in the Crude Price Assessments
section of Platt's Oilgram Price Report for the issue of publication on the
date of the Transaction ("Index Price").  The price for Exchange Product
shall equal (i) the Index Price, plus (ii) the Adjusted Price.  The Bid Price
represents the Adjusted  Price for Exchange Product  under Section A above.
The Offer Price represents the Adjusted Price for Exchange Product  under
Section B above.

Term of the Product:
The term of the Transaction shall be from the Effective Date to the
Termination Date. The Effective Date is {DATE}.   The Termination Date is
{DATE}.

Location of the Example Product:
The delivery of Alaskan North Slope ("Exchange Product") shall be at Long
Beach, California.

Currency:
The price is quoted in US Dollars per unit of volume, which will be the
Contractual Currency.

UOM:
The unit of measure in which the price is quoted is in Barrels per day and
the quantity shown shall be in Barrels per day.

==============================================================================
=====

STEPS FOR APPROVAL:

click the  START button
select  PROGRAMS
select  TEST APPLICATIONS
select ENRONONLINE CLUSTER(PROD)
 PROCEED WITH USUAL LOGIN/PASSWORD
click the Enron Online Production Cluster "START" button
select EnronOnLine (this is the EOL Datamanager)
 PROCEED WITH EOL LOGIN/PASSWORD
click on the "+" for EnronOnLine
click on the "+" for Product Types
click on the "+" for "Awaiting Approval" (OR  "Partially Approved")
select the product requiring review as stated in e-mail above
Right "mouse" click on "properties" to view product set-up
TO APPROVE:  Right mouse click on "Approved"


Please call Damon Sykes at National Fuel 716-857-6847.

He would like to talk about a park & loan deal involving Transcanada.


Chris,

I think that it makes more sense if we send out our form to you.  We have no
problem w/ the changes to force majeure, but most of the other issues raised
in the GISB will present problems for us.  Specifically, we are unable to
agree to TX law, any arbitration, as well as spot price method of damages.
Additionally, it is of key importance to us that we have an order in place
w/ the bankruptcy court permitting both the contract, including the
transactions, and for Sempra to close-out and terminate any transactions in
the event that Enron converts its case to a Chapter 7.  We would require the
GISB to have language referencing such an order.

I will ask our Contract Administration group to send this out today.  I will
not be in the office this afternoon and tomorrow, but if you want we can
discuss on Friday.

Marcia Greenblatt
Vice President and Associate Counsel
Sempra Energy Trading Corp.
58 Commerce Road
Stamford, CT 06902
Tel:  203-355-5405
Fax: 203-355-5410
mgreenblatt@sempratrading.com

-----Original Message-----
From: Germany, Chris [mailto:Chris.Germany@ENRON.com]
Sent: Wednesday, March 13, 2002 8:48 AM
To: Michael McCall <mmccall@sempratrading.com>@ENRON
Cc: Andrew Giglia; Marcia Greenblatt
Subject: RE: Sempra Energy Trading GISB

At this point, just send everything to me and I'll work with our legal
department.

>  -----Original Message-----
> From: 	Michael McCall <mmccall@sempratrading.com>@ENRON
> Sent:	Wednesday, March 13, 2002 7:44 AM
> To:	Germany, Chris
> Cc:	Andrew Giglia; Marcia Greenblatt
> Subject:	RE: Sempra Energy Trading GISB
>
> Chris:
>
> There are some issues with the attached form - who do I send revisions to?
> In addition, our legal department needs to get a copy of the court order
> authorizing ENA to enter into GISBs and transactions - who do contact
> regarding this issue?
>
> Regards - Michael McCall
>
> -----Original Message-----
> From: Germany, Chris [mailto:Chris.Germany@ENRON.com]
> Sent: Tuesday, March 12, 2002 11:39 AM
> To: mmccall@sempratrading.com
> Cc: Draper, David
> Subject: FW: Sempra Energy Trading GISB
>
>
> These days, its easier for our legal department to draft or approve a new
> GISB than to find any of the existing documents.  The attached document is
> for Enron North America Corp.  David is going to see if they can use it.
>
> If your legal department approves, please print 2 originals, fill in the
> Sempra information, sign it, and send it to me.
>
> Thanks
>
> Chris L. Germany
> Manager, Gas Trading
> Phone 713-853-4743
> Fax  713-646-3059
>
> Address:	Attn:  Chris Germany  ECS 04444
> 		1400 Smith St
> 		Houston, TX 77002
>
>
> >  -----Original Message-----
> > From: 	Dickson, Stacy E.
> > Sent:	Monday, March 11, 2002 4:33 PM
> > To:	Germany, Chris
> > Cc:	Mann, Kay
> > Subject:	Sempra Energy Trading GISB
> >
> > Chris,
> > Attached is a draft of a GISB with Sempra.  Please call me if you have
any
> questions.
> >
> > Stacy
> >
> > >  <<SEMPRAGISB.doc>>
>
>

**********************************************************************
This e-mail contains privileged attorney-client communications and/or confidential information, and is only for the use by the intended recipient. Receipt by an unintended recipient does not constitute a waiver of any applicable privilege."

Reading, disclosure, discussion, dissemination, distribution or copying of this information by anyone other than the intended recipient or his or her employees or agents is strictly prohibited.  If you have received this communication in error, please immediately notify us and delete the original material from your computer."

Sempra Energy Trading Corp. (SET) is not the same company as SDG&E or SoCalGas, the utilities owned by SET's parent company.  SET is not regulated by the California Public Utilities Commission and you do not have to buy SET's products and services to continue to receive quality regulated service from the utilities."
**********************************************************************


See the attached proposed language to implement eol gas and power financial paperless transactions.  Please review and advise.  Thanks.

Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas 77002-7361
(713) 345-7732
(713) 646-3393 (fax)
mary.cook@enron.com


Start Date: 2/5/02; HourAhead hour: 20;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002020520.txt
!!!General SQL error.
Couldn't update; currently locked.
Table

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

  TRANS_TYPE: FINAL
  SC_ID: ECTstNW
  MKT_TYPE: 2
  TRANS_DATE: 2/5/02
  TIE_POINT: MALIN_5_RNDMTN
  INTERCHG_ID: ENRJ_CISO_3000
  ENGY_TYPE: FIRM


-----Original Message-----
From: 	Courtney Cleman <Courtney.Cleman@morganstanley.com>@ENRON [mailto:IMCEANOTES-Courtney+20Cleman+20+3CCourtney+2ECleman+40morganstanley+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Monday, September 17, 2001 8:32 AM
To:	kkonolig@ms.com
Subject:	More Sector Thoughts After the WTC/Pentagon Disasters/Kit Konolige/MS  Electric Utilities Research

Morgan Stanley Electric Utilities Research

Kit Konolige  (212) 761-6237
David Reynolds  (212) 761-6078
Carrie Stevens  (212) 761-6183
Chris Bezler  (212) 761-4487
Douglas Levine  (212) 761-7134

More Sector Thoughts After the WTC/Pentagon Disasters

* Defensive posture means stocks should outperform
With European markets sinking and political talk turning
towards a protracted military response we expect electric stocks
in general to see sector inflows.
* Precedence
The sector has outperformed in the wake of other crises and
industry wide fundamentals appear stable.
* Large-cap integrateds may be the best place
Regulated utilities more well known as a defensive sector while
volatility benefits merchants - big integrateds with merchant
exposure like DUK, AEP, and D offer both.
* Direct impacts limited
Little capital invested in a potentially volatile Middle East;
industry is primarily domestic; lower NYC demand transitory
and likely immaterial, in our view.
 - 111037.pdf
 - Courtney.Cleman.vcf


Cindy:  My schedule was so hectic before going out on vacation on December 17
that I am only now reading your message regarding a business owner sign-off
for Unify/SAP integration.  I have asked Stephen Schwarz to give me his
recommendation on the most appropriate person to do so.  I think that is a
good idea.  As soon as schedules normalized following the holidays, I will be
back to you with a name.


Dear Vince,

I hope you are well and that things round at Enron aren't too hectic. It is
my pleasure to invite you to speak at Energy & Power Risk Management
Magazine Conferences' new event, Australian Energy 2000, addressing the
second Industry Briefing - "Learning from US experience: Lessons to be
learned from the restructuring North American markets". I appreciate that
you are speaking a lot for us at the moment (for which I am of course
grateful) but, when researching, yours was a name that came up repeatedly
as someone the market would like to hear from. I am hoping that perhaps you
might need to see Paul Quilkey at some point in July and that we can
provide you with another reason to cross the globe.

Rather like the industry briefing that you are giving at Power 2000 this
year in Houston, this address will be presented to the entire conference
before breaking into their streams.

Australian Energy 2000 will take a focused look at the latest problems
facing energy players, with the two in-depth streams I mentioned above: one
dedicated to energy pricing and trading and the other looking at risk
management and the latest business issues.

This conference will be of the highly technical level that people have come
to expect from EPRM events, and I am very keen to encourage participation
from speakers in modifying the programme to suit the audience and issues at
hand. If you have any suggestions or comments on the programme, please let
me know; any help would be gratefully received.

This event will be thoroughly marketed through both Energy & Power Risk
Management Magazine and our extensive database. It is my aim to attract the
leading market players by providing a first-class programme with top-rated
speakers, making this a highly worthwhile event for the energy industry.

I have attached a copy of the programme for your information.

Unfortunately my schedule for this event is very tight. Please let me know
if you would like to participate by reurn email as it is unlikely that we
can speak on the phone as I am currently based in Hong Kong. If you would
like to send a colleague, then I would be happy to discuss this but it
would be great if you could complete the EPRM grand slam by addressing our
three major annual events on three different continents!

I look forward to hearing from you soon.

Yours sincerely,

Joel Hanley
Producer, EPRM Conferences & Courses

 - AustralianEnergy2000.doc

__________________
EPRM Conferences
Risk Publications
Hong Kong
Tel: 852 2545 2710
Fax: 852 2545 7317
www.riskpublications.com


Sara

Unfortunately I don't know anything more about this.

Regards

From: Sara Shackleton on 24/10/2000 08:42 CDT
To: Mahesh Lakhani/LON/ECT@ECT, Cindy Buckley/LON/ECT@ECT, Janine
Juggins/LON/ECT@ECT
cc: John Greene/LON/ECT@ECT

Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

I am still waiting for a copy of the services agreement and the form of
signature.  Instinet is proceeding but will still require this information.
Thanks.  Sara

	Sara Shackleton
	10/16/2000 03:14 PM

		 To: Mahesh Lakhani/LON/ECT, Cindy Buckley/LON/ECT
		 cc: Janine Juggins/LON/ECT@ECT, John Greene/LON/ECT@ECT
		 Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

I have not received a response from anyone.  Sara

	Mahesh Lakhani
	10/06/2000 03:22 AM

		 To: Sara Shackleton/HOU/ECT@ECT, Cindy Buckley/LON/ECT@ECT
		 cc:
		 Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

Cindy
Can you provide this to Sara please
Thx
Mahesh

From: Sara Shackleton on 04/10/2000 14:11 CDT
To: Mahesh Lakhani/LON/ECT@ECT
cc:

Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

thanks.  Can you provide me with the appropriate signature block for ENA/ECT
Investments Inc. through the agent?

	Mahesh Lakhani
	10/04/2000 10:01 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Paul Simons/LON/ECT@ECT, John Greene/LON/ECT@ECT, Janine
Juggins/LON/ECT, Cindy Buckley/LON/ECT@ECT
		 Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

Sara.   It has been formed.  Enron Investment Services Ltd was set up on
3/10/00

Regards
Mahesh

Janine Juggins
04/10/2000 15:10
To: Sara Shackleton/HOU/ECT@ECT, Mahesh Lakhani/LON/ECT@ECT
cc: Paul Simons/LON/ECT@ECT, John Greene/LON/ECT@ECT

Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

Mahesh, please can you update Sara on the status (I think it has been formed,
but Mahesh will confirm)
Regards
Janine

From: Sara Shackleton on 04/10/2000 08:19 CDT
To: Janine Juggins/LON/ECT@ECT, Paul Simons/LON/ECT@ECT
cc: John Greene/LON/ECT@ECT

Subject: U.K.  arranger for ENA and ECT Investments, Inc.

Any word yet on creation of the new entity?  Sara


I'd be more than happy to run a test of the new forward obligation report in
order for you to move it to production. I do use the application everyday
when determining the West desk positions in relation to each other, so it's a
report I'm familiar with and also one that may affect me if it's changed.
Please let me know if you'd like me to run the report and under what terms.

Thanks,
Kate Symes
Trading Support
503-464-7486


Please see the attacheed file for adjustments to be made in July.  Call me if
you have any questions.

Thanks!


Can you please take care of this?

 -----Original Message-----
From: 	Nestor II, Thomas
Sent:	Wednesday, February 13, 2002 10:33 AM
To:	Corman, Shelley
Subject:	GISB

Shelley, do you have an extra copy of version 1.5 of GISB Standards?  FGU is looking for a copy.  Tom


Jan,
	I had a number from you for one of the presentations we put together, but I wasn't sure if it was the final, actuals for 2001.  What was TW's total actual throughput for 2001?


FYI - This is the "Day 1" list that you worked on consolidated into one spreadsheet. As you can see the Logistics Managers for each desk, working with Suzanne and me will be responsible for getting this done. Suzanne is putting together a master binder and will start reviewing the requirements with each of you to get as much done ahead of time as possible. In the master binder will be the more detailed spreadsheets with the additional, and critical, notes you included.

Let me know if you have any questions, tks. In addition Tammy is working on the TPA's and EBB's to get the major EDI pipes up and running ASAP.

Bob

 -----Original Message-----
From: 	Superty, Robert
Sent:	Tuesday, January 08, 2002 10:39 AM
To:	Kitchen, Louise
Cc:	Calcagno, Suzanne
Subject:	Revised: Gas Logistics NETCO Restart

Louise, as requested, attached is the Gas Logistics pipeline contract spreadsheet with responsibilities added.

Please let me know if you have any questions, tks - Bob Superty


Thanks!

 -----Original Message-----
From: 	Collins, Joan
Sent:	Monday, October 29, 2001 11:27 AM
To:	Schwieger, Jim
Subject:	Josh-Dental Appointment Wednesday

Just a reminder, Josh has an appointment for Wednesday @ 3:30 for a filling at Pediatric Dental Sp.


Understood

You guys have been more than fair with us.

-----Original Message-----
From: John.Arnold@enron.com [mailto:John.Arnold@enron.com]
Sent: Friday, October 26, 2001 12:51 PM
To: fzerilli@POWERMERCHANTS.COM
Subject: RE:

   I am sorry you lost the trade but this is not a matter that should be
   worked in the broker market nor should anybody be looking to profit
off
   the situation. It is being handled directly to ensure the integity
and
   liquidity in the market that is beneficial to all.

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate
and may contain confidential and privileged material for the sole use of
the intended recipient (s). Any review, use, distribution or disclosure
by others is strictly prohibited. If you are not the intended recipient
(or authorized to receive for the recipient), please contact the sender
or reply to Enron Corp. at enron.messaging.administration@enron.com and
delete all copies of the message. This e-mail (and any attachments
hereto) are not intended to be an offer (or an acceptance) and do not
create or evidence a binding and enforceable contract between Enron
Corp. (or any of its affiliates) and the intended recipient or any other
party, and may not be relied on by anyone as the basis of a contract by
estoppel or otherwise. Thank you.
**********************************************************************


fyi
----- Forwarded by Mark E Haedicke/HOU/ECT on 04/24/2001 02:31 PM -----

	John Sherriff
	04/24/2001 12:55 AM

		 To: (713) 529-7757, Ken Rice/Enron Communications, Kevin Hannon/Enron
Communications, Mark Frevert/NA/Enron, Greg Whalley/HOU/ECT, Mike
McConnell/HOU/ECT@ECT, Steven J Kean/NA/Enron@Enron, Mark
Palmer/Corp/Enron@ENRON, Joseph P Hirl/AP/ENRON@ENRON, Jeremy
Thirsk/AP/Enron@ENRON, Morten E Pettersen/AP/Enron@Enron, Nicholas
O'Day/AP/Enron@Enron, Jackie Gentle/LON/ECT, Richard Shapiro/NA/Enron@Enron,
Jeffrey McMahon/HOU/ECT, Jeffrey A Shankman/Enron@EnronXGate, Raymond
Bowen/enron@enronxgate, Joe Gold/LON/ECT@ECT, Bryan Seyfried/LON/ECT@ECT,
Jeff Kinneman/HOU/ECT, Rebecca McDonald/ENRON_DEVELOPMENT, Carey
Sloan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brian Stanley/EU/Enron, Michael R
Brown/LON/ECT, Mark Evans/Legal/LON/ECT, Fernley Dyson/LON/ECT, Ted
Murphy/LON/ECT@ECT, Rick Buy/HOU/ECT, Richard Causey/Corp/Enron, Mark E
Haedicke/HOU/ECT@ECT, Drew C Lynch/LON/ECT, David Oxley/HOU/ECT@ECT, John J
Lavorato/Enron@EnronXGate, lkitchen@enron.co.uk
		 cc:
		 Subject: Draft Organizational Announcement about Japan

May I please have your comments if any on this draft by close of business
Wednesday.  We hope to have agreed on the Q&A's by then and to send it out
the announcement on Thursday.

John

To be sent to:  All Enron Europe, all employees in Japan,  all Global Markets
and all VPs and up around the company

Enron has established several wholesale businesses in Japan in the last year
including Metals,  Power Plant Development (via our investment in EnCom),
Coal,  LNG & Weather.   Though Japan continues to make progress towards a
liberalized electricity market, significant barriers to power trading remain
under the current interim market structure.  Until further tangible steps are
taken to improve third party access for electricity in Japan, we will suspend
our power marketing efforts and focus on the significant opportunities that
currently exist in our other wholesale businesses.   Once the necessary
regulatory changes have been completed we expect to aggressively pursue
Enron's traditional position as the leading buyer and seller of electricity
in every deregulated market.

Based on these changes Joe Hirl our President of Enron Japan will move to the
Global Markets group and lead a team that will focus on developing all our
Global Markets opportunities in Japan especially Weather,  Oil,  LNG,  Coal,
and Shipping.    We expect to continue our general recruiting  of Japanese
nationals and as President of Enron Japan,  Joe will continue to provide the
overall business leadership to both recruiting and the Analyst and Associate
program in Japan.  The Finance origination team headed by Jeremy Thirsk will
continue to report to Joe and also move to Global Markets.  Our power trading
group led by Morton Erik Pettersen will transition into other roles around
Enron.  The Equity/FX/Interest rate team which is a part of Global Markets
has two employees in the Tokyo office today and they expect to expand their
efforts throughout the year.

The EnCom group, which is our power plant development business (with minority
partners) and headed by Carey Sloan will continue its efforts in developing
power plants in Japan.  We are pleased with the progress we are making on a
number of sites and EnCom will continue to report to the Enron Europe Office
of the Chairman.

Our Metals team headed by Kazunari Sugimoto will continue to report through
Enron Metals in London.

By May we expect Enron Credit to have two to three employees in Tokyo pursing
the Credit Derivative business.  These employees remain in  Enron Credit , a
part of Enron Europe.

EBS has two employees headed by Jim Weisser and this team expects to expand
by year end.

The Industrial Markets team also expects to have two employees in the Tokyo
office in the next couple of months.

In the last seven months the commercial support services for Japan have been
transitioned to London for support and this is not changing.  Jane McBride
heads the legal team and will continue to functionally report  to Mark Evans,
General Counsel in London.   The RAC function will continue to report to Ted
Murphy, head of RAC for Enron Europe.   The Risk Management and Accounting
team is headed by Jan-Erland Bekeng will continue to functionally report to
Fernley Dyson in London.  The  IT, HR,  Tax and real estate teams will also
continue to functionally report to London.

Nick O'Day who heads both the Public Affairs group (Government & Regulatory
Affairs and the Public Relations) in Japan will report to the Enron Europe
Office of the Chair with a Public Relations functional reporting to Jackie
Genle in London and a Government Affairs functional reporting to Rick
Shappiro in Houston.   We anticipate that his team's efforts will be
primarily directed to supporting the EnCom power plant development team but
he will also continue to provide support for Global Markets, EBS & Industrial
Markets.

We have already made considerable progress in breaking into the Japanese
markets across a wide range of Enron businesses and we anticipate that this
will be a major profit center for profit growth for years to come. Through
these current changes we can demonstrate our ability to be flexible and
target our resources where they will realise the most immediate value for the
company.


Ms. Kitchen:

	I'm sure you're aware Mark Taylor is on vacation this week, but he left the following email address:

	qe2@cruisemail.com
	Subject Line:  Mark Taylor Cabin 3084

Messages will be delivered to his cabin.

Thank you,

Holly Keiser
Enron Wholesale Services
Legal Department
Phone: 713-345-7893
Fax: 713-646-3490
Location: EB 3887
Holly.Keiser@enron.com


We received the following executed EEI Master Power Purchase and Sale Agreements:

Conexant Systems - 9/28/01
Fresh Express Incorporated - 9/27/01
Mississippi Delta Energy Agency, Clarksdale Public Utilities Commission of the City of Clarksdale, Mississippi, and Public Service Commission of Yazoo City of the City Yazoo City, Mississippi - 5/1/01
XERS INC d/b/a Xcel Energy - 10/4/01
City of Mesa, Arizona - 9/5/01
International Rectifier Corporation - 9/20/01
North Carolina Power Holdings, LLC - 7/12/01

A copy of each will be scanned into Livelink.


Lynn Burke with the CDC's needs to release some CGAS and CGLF capacity to
CES/New Power for August 2000-July 2001.  She wants to know who she should
release the capacity to for August.  ????