Enron Names Special Committee To Examine Transactions
Dow Jones News Service, 10/31/01

Enron says SEC opens formal inquiry into related-party transactions
AFX News, 10/31/01

Enron Says SEC Informal Inquiry Now a Formal Investigation
Bloomberg, 10/31/01

Key Enron Employees Aren't Jumping Ship, Recruiters Say
Dow Jones Energy Service, 10/31/01

Houston, We Have A Problem: How Much Is Enron Worth?
Dow Jones News Service, 10/31/01
Enron's stock jumps amid takeover speculation
Associated Press Newswires, 10/31/01
USA: Few signs of domino effect among Enron's peers.
Reuters English News Service, 10/31/01

Waste Management Will Start Pulp And Paper Trading Tomorrow
Bloomberg, 10/31/01

Enron ends 10-day skid with 25% jump
CBSMarketWatch.com, 10/31/01

Enron's stock jumps amid takeover speculation
Associated Press Newswires, 10/31/01
Class Action Lawsuit Commenced Against Enron Corp. By The Law Offices of Marc S. Henzel
PR Newswire, 10/31/01
Some Enron Trading Customers Tighten Credit Reins, Cut Trades
Bloomberg, 10/31/01

USA: Enron rebounds, but investors seek more disclosure.
Reuters English News Service, 10/31/01

Waiting for Balance Sheets Amid Enron's Debacle: David Wilson
Bloomberg, 10/31/01

Enron Shares Rise, Rebounding From Nine-Year Low (Update3)
Bloomberg, 10/31/01

Enron Names Special Committee To Examine Transactions

10/31/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Enron Corp. (ENE) created a Special Committee to examine deals related to the Security and Exchange Commission investigation into transactions involving Enron's former chief financial officer, which has now turned into a formal investigation.
The energy-trading company also named William Powers Jr. to its board, making him in charge of the Special Committee, the company said in a press release Wednesday.

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

Enron says SEC opens formal inquiry into related-party transactions

10/31/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

HOUSTON (AFX) - Enron Corp said the Securities and Exchange Commission has opened a formal inquiry into the company's transactions with entities connected with related parties.
In a statement, Enron said "the SEC has opened a formal investigation into certain of the matters that were the subject of recent press reports and that previously were the subject of its informal inquiry."
Earlier this month, Enron announced a charge of 1.01 bln usd, or 1.11 usd per share, and an incremental 1.2 bln usd reduction in stockholders' equity, related to the unwinding of investments with the related LJM partnership.
The SEC requested the company provide information on these related-party transactions days later, and the company dismissed its chief financial officer, Andrew Fastow, for his involvement in running the LJM partnerships.
In today's statement, the company announced the election of William Powers Jr to the board, effective immediately.
Powers, who is dean of the University of Texas School of Law, will chair a Special Committee to examine and take any appropriate actions with respect to transactions between Enron and entities connected to related parties, it said.
In addition to reviewing the transactions in question, the Special Committee is charged with communicating with the SEC and recommending any other actions it deems appropriate.
"I have asked the Board to take this action to address fully and forthrightly investors' questions and concerns," said Enron chairman and chief executive officer Kenneth Lay.
"Responding to the SEC offers us an additional opportunity to achieve this same goal for investors, and we will cooperate fully. We will also make every appropriate public disclosure during the course of the SEC's investigation."
pav/

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

Enron Says SEC Informal Inquiry Now a Formal Investigation
2001-10-31 17:37 (New York)

Enron Says SEC Informal Inquiry Now a Formal Investigation

     Houston, Oct. 31 (Bloomberg) -- Enron Corp. said an informal
inquiry by the Securities and Exchange Commission is now a formal
investigation, and the Houston-based company's board is appointing
a special committee to address allegations related to partnerships
run by its former chief financial officer.

     William Powers Jr., dean of the University of Texas law
school, will chair a committee to handle the SEC's requests for
information about the partnership, Enron said.

--Andy Pratt in the Princeton newsroom at (609) 750-4657 or

Key Enron Employees Aren't Jumping Ship, Recruiters Say
By Michael Rieke
Of DOW JONES NEWSWIRES

10/31/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Enron Corp.'s (ENE) current problems aren't sending its key employees running for the door, according to two executive recruiters.
While employees at Enron's underperforming units are shopping around for new jobs, those working for its core wholesale energy trading and retail energy units seem content, the recruiters told Dow Jones Newswires.
"We've been getting resumes from their international group over the last year," said Bruce Peterson, managing director for Korn Ferry in Houston. "But its been a very well-known fact that they're getting out of those businesses."
Another Houston recruiter, who didn't want to be identified, said he has gotten "a flood" of resumes from employees at Enron's natural gas and power assets in South America.
Employees at Enron's broadband unit are also sending out resumes, said the recruiter. That business has brought the company losses of more than $100 million this year despite hundreds of layoffs. Enron continues to cut costs in its telecom business.
Neither recruiter has seen many resumes from Enron's big moneymakers - the wholesale energy trading group and the retail energy services group.
Some of the lower-level employees of those units have sent out resumes but Peterson said he hasn't seen higher-level executives in the job market. However, he attached a caveat to that statement.
"Quite a few of the senior people at Enron have left over the last 6-12 months," he said.
When Enron's share price was flying high last year and early this year, some of Enron's top executives cashed out their stock options and left the company.
Those executives included Cliff Baxter, former vice chairman and chief strategy officer; Ken Rice, former head of Enron Capital and Trade as well as former chief executive of Enron Broadband Services; Kevin Hannon, former president of Enron Broadband Services; and Lou Pai, former chairman and chief executive of Enron Energy Services.
The lure of cashing out lucrative stock options won't cost Enron any more employees any time soon. The company's share price has fallen too far too quickly, leaving the options underwater.
The company's shares traded as high as $80 early this year. By July the price had dropped to around $50, leaving employees with options that were virtually worthless. So Enron told employees it would issue new options in August.
But the company's share price continued to fall as more and more bad news came out. The new options issued in August, when the share prices were around $40, are now underwater also.
Now that the options are out of the money, Enron employees are more vulnerable to the lure of other companies, Peterson said.
Enron could face another problem in keeping key people. Its employees work under two-year contracts. If they leave Enron before their contracts expires, a noncompete clause could prevent them for working for a competitor.
Some of those contracts will expire at the end of the year. Without the incentive of lucrative stock options, Enron might have a difficult time getting employees to agree to new contracts with a noncompete clause, Peterson said.
An Enron spokeswoman said the company isn't planning to issue more new options to employees.
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@dowjones.com

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

Houston, We Have A Problem: How Much Is Enron Worth?
By Christina Cheddar
Of DOW JONES NEWSWIRES

10/31/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- With billions of dollars shaved off of the market capitalization of Enron Corp. (ENE) in the past two weeks, the stock is trading at about its book value, begging the question: so how much is it worth anyway?
The answer is far from easy.
Ever since Enron metamorphosed from a stodgy gas pipeline company into what was seen by many as a dynamic energy trading firm, the company has become increasingly more difficult to understand.
Just a glance at the wide-range of Wall Street analysts who follow the company illustrates the point. In the mix are analysts who track natural gas and the pipeline industry as well as those who follow electric utilities.
One enticing prospect is that the assets in its portfolio are valuable in and of themselves and could be seen by some as worthwhile acquisition targets.
By Enron's own definition, the company houses four main divisions: Enron Wholesale Services, Enron Energy Services, Enron Transportation Services, and Enron Broadband Services.
Wholesale Services houses the company's energy marketing business and EnronOnline. This segment accounts for the bulk of Enron's profits, and has become synonymous with what Enron means to most people today.
Not only does Enron trade gas, oil and coal, but it also trades commodities such as pulp and paper, petrochemicals, lumber, plastics and even weather risk.
Enron Energy Services is the company's retail arm. The company provides electricity, gas and commodity risk management services through this division.
Enron Transportation Services operates four natural gas pipelines that span about 25,000 miles and have a peak capacity of 9.8 billion cubic feet per day. Through these pipelines the company says it transports about 15% of the natural gas the U.S. needs. The segment also includes Portland General, a Oregon utility company Enron is selling to Northwest Natural Gas Co. (NWN) for $1.9 billion in cash and stock.
In addition, the company provides bandwidth and network services through its Enron Broadband services division.
But Enron's reach is even wider than this list suggests. The company also has a number of other corporate investments, including its stake in the Azurix water business, Enron Renewable Energy Corp. as well as methanol and MTBE plants.
Through Enron's unconsolidated affiliates, the company also has investments in additional water assets, a power plant in India and a natural gas pipeline in Argentina among other things.
What makes any valuation of Enron difficult is what remains unknown about the company's financial structure.
Enron has yet to file a balance sheet for the third quarter, and doesn't expect to do so until Nov. 15, when balance sheets must be filed under Securities and Exchange Commission regulations.
Without the balance sheet, some of the details needed for calculating a company's value are missing.
Also, much still remains unknown about the company's obligations to its off-balance sheet financing vehicles.

Using what is known about Enron's finances, several analysts have arrived at their own conclusions about valuation.
Merrill Lynch & Co. analyst Donato Eassey said Wednesday he puts Enron's net asset value at between $16 to $24 a share. The calculation assumes Enron has 850 million diluted shares outstanding.
Eassey valued Enron's on-balance sheet assets at nearly $11 billion, and the off-balance sheet assets at $1.1 billion. He has valued the company's trading business at between six-to-eight-times its 2001 earnings before interest, taxes, depreciation and amortization, or about $19 billion to $26.5 billion, based on his EBITDA estimate of $3.3 billion for this year.
"Thus, our total asset value stands in the $32 (billion) to $38.6 billion area," Eassey said.
The analyst then deducted $13.8 billion in total balance sheet debt, and estimated off-balance sheet debt at about $3.4 billion. The estimates bring total debt to $17.2 billion, including $1 billion in preferred stock, he said.
Importantly, Eassey's estimate doesn't include any cash balances or the value of its current trading position.
At the end of June, Enron had $847 million in cash and was in a net positive trading position of $306 million, Eassey said.
Last Thursday, Dain Rauscher Wessels analyst Mark Easterbrook arrived at a net asset valuation of between $27 to $35 a share.
Easterbrook's calculation assumes added writedowns and equity adjustments.
The lower half of the range assumes Enron doesn't complete any asset sales, and assumes equity funding dilutes the shares outstanding by 24%, the analyst said.
The higher end of the range assumes asset sales of $3.5 billion, debt reduction of $1 billion from the Portland General sale and no equity financing, he said.
The view doesn't take into consideration the short-term liquidity crunch ongoing at the company, Easterbrook said. In addition, he added, the estimate assumes all of Enron's partnerships and investments no longer have any residual value.
Early this year, John S. Herold came up with a "rough cut" valuation of Enron of "plus or minus something in the $30 range" using appraised net worth methodology, said John Parry, an analyst at the firm. However, he said, the firm never published the estimate because it felt it didn't have enough information from Enron about the off-balance sheet financing vehicles to make a complete assessment.
At the time, Enron's stock was trading in the $70's, Parry said. So, he cut the stock's rating to sell.
"I never imaged it would fall this low," he said.
Enron shares closed Wednesday at $13.90, up $2.74, or 24.6%.
-By Christina Cheddar, Dow Jones Newswires; 201-938-5166; christina.cheddar@dowjones.com

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

Enron's stock jumps amid takeover speculation
By JUAN. A. LOZANO
Associated Press Writer

10/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

HOUSTON (AP) - After plummeting to a nine-year low following recent economic losses and an investigation by federal securities regulators, shares of Enron Corp. jumped nearly 25 percent Wednesday amid speculation the company was ripe for takeover.
Shares of Enron, the nation's largest natural gas and power marketer, rose $2.74 to close at $13.90 Wednesday on the New York Stock Exchange. Shares though are still down 69 percent since the company reported third quarter earnings just over two weeks ago.
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said Wednesday's surge was likely a reaction to a The Wall Street Journal report that Enron's beaten-down stock price has stirred rumors of a possible takeover.
Others may be buying figuring the stock has hit bottom, she said.
On Tuesday, Enron's stock closed at $11.16, its lowest level since 1992.
Enron shares began their steady fall in the middle of October, when the company reported a net loss of $638 million in the third quarter, taking a one-time charge of $1.01 billion attributed to investment losses, troubled assets and unit restructurings.
Some of these losses have been tied to partnerships managed by Enron's former chief financial officer, Andrew Fastow, who was ousted last week.
The potential conflict of interest has prompted an inquiry by the Securities and Exchange Commission.
Earlier this week, Moody's Investors Service downgraded the company's long-term debt and warned of possible further downgrades.
Potential buyers include General Electric's GE Capital unit, Warren Buffett's Berkshire Hathaway and Royal Dutch Shell, the Journal said.
Duane Grubert, an analyst with Sanford C. Bernstein and Co. in New York, said Shell, which has a small presence in energy marketing, would be a good fit.
"Shell tried to be in the merchant energy arena and didn't really succeed," he said. "To buy into an established franchise must be attractive to Shell."
Enron officials did not immediately return telephone calls from The Associated Press on Wednesday.
While Enron's stock price has made it attractive, Coale said the energy marketer's problems present a substantial drawback.
"I would fault a company for acquiring Enron with all of this hanging over it," she said. "There are too many uncertainties."
Grubert said he believes Enron has the ability "to weather the storm and restore their enterprise on their own."
Since reporting its disappointing third quarter losses, Enron has been negotiating with banks to establish new credit lines. The company last week decided to cash in about $3 billion in revolving credit it has with various banks to shore up investor confidence.
---
On the Net:
http://www.enron.com

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

USA: Few signs of domino effect among Enron's peers.
By Andrew Kelly

10/31/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, Oct 31 (Reuters) - U.S. energy traders such as Dynegy Inc. and Aquila Inc. have taken a knock as a result of Enron Corp's recent woes, but analysts do not expect a broad loss of investor confidence in the sector to trigger massive losses in stock prices like Enron has suffered.
"The issues impacting Enron are pretty much specific to that company," said Credit Lyonnais Securities analyst Gordon Howald. "I don't believe that a lot of its peers have the same type of potential negative impact," he said.
Enron's widespread use of complex off-balance-sheet financing deals and its reluctance to disclose details about them are a key reason why investors have dumped the company's stock, causing it to fall more than 60 percent in the last two weeks.
And while other natural gas and electricity marketers use similar techniques to avoid overloading their balance sheets with debt, nobody does so to the same extent as Enron, analysts said.
"Enron is a unique case in the magnitude of off-balance sheet transactions," said Prudential Securities analyst Carole Coale.
UNCOMFORTABLE WITH DISCLOSURE
Coale said she was not comfortable with the level of disclosure provided by many of Enron's peers about such deals, but she said this was less of a problem at other companies because they have less exposure to the risky energy trading and marketing business which contributes about 80 percent of Enron's profits.
El Paso Corp., for example is channeling over $1 billion in off-balance-sheet financing into its Project Electron venture which was set up to acquire and manage power plants.
Analysts say they are reasonably pleased with the information that El Paso has provided to them about Electron.
El Paso's stock has fallen a relatively modest 5 percent over the last two weeks and analysts attribute this in large part to the fact that marketing and trading operations generate only about one quarter of the company's earnings.
Dynegy's stock is down some 17 percent over the last two weeks and analysts said this was linked to Dynegy's assumption of a leadership role among U.S. energy marketers in many investors' eyes as Enron began to fall out of favor and as Dynegy attained a correspondingly high price-earnings ratio.
Asked about Dynegy's use of off-balance-sheet financing, spokesman John Sousa drew a contrast between his own company and Enron, saying Dynegy had no financing that was backed by issuance of stock, nor any "related party transactions".
FORMER HIGH-FLIERS SHUNNED
Analysts said that in the current uncertain investment climate, investors are shunning trading-oriented companies' whose stocks had previously commanded high price-earnings multiples and seeking out more modestly valued companies which own physical assets such as power plants and natural gas pipelines.
In terms of recent stock price performance this trend has punished a marketer-trader like Aquila, whose shares are down 27 percent over the last two weeks.
On the other hand it has been relatively kind to companies such as Williams Cos. and Duke Energy Corp. , which until recently were treated with scorn by Enron executives who aggressively propounded an "asset-light" philosophy.
Williams' stock has fallen about 5 percent over the last fortnight while Duke's shares are down less than 1 percent and have outperformed the broader U.S. stock market.
J.P. Morgan analyst Anatol Feygin said Enron had fallen victim to its unique taste for sophisticated financing techniques and its failure to explain them when doubts started to surface.
"Enron took it to an extreme in terms of financial engineering, but it didn't disclose enough information about what is behind all of these structures," he said.
Credit Lyonnais Securities' Howald had a simpler explanation, saying that as the euphoria which surrounded Enron last year subsided, people began to see Enron for what it was.
"Trading companies have always had a history of winning big and losing big," he said. "I think the days of the big valuations are over," he added.

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

Waste Management Will Start Pulp And Paper Trading Tomorrow
2001-10-31 16:52 (New York)

Waste Management Will Start Pulp And Paper Trading Tomorrow

     Houston, Oct. 31 (Bloomberg) -- Waste Management Inc., North
America's largest trash hauler, will start trading paper and pulp
tomorrow to limit the effects of price fluctuations of recycled
materials and offer a service its biggest rivals don't provide.

     In the past three years, Waste Management has reduced its
exposure to price swings by placing 75 percent of its recycled-
commodity sales under long-term, fixed-price contracts. Still, the
company's revenue from recycling fell 38 percent to $154 million
in the second quarter.

     Chief Executive Officer Maurice Myers is hoping the trading
business will help stabilize recycling revenue even when prices
for cardboard, newspaper and aluminum cans fall. Trading allows
Waste Management to further limit its own exposure to prices, as
well as offer contracts to customers who want to lock in prices.

     ``What Waste Management is doing is going to reduce the
company's risk and their customer's risk,'' said Thomas Leritz, an
analyst at Banc of America Capital Management, which owns more
than 1 million shares of Waste Management. ``I think it's a smart
move. It's a reflection of the new management team.''

     Myers joined the company in November 1999 as it struggled to
track costs from acquisitions. He has put new financial-systems
software in place and made other efforts to cut costs. The company
has also raised prices where it's the dominant hauler.

     Myers's efforts, along with the sale of overseas businesses,
have helped the company regain regard among investors. The shares
have risen 22 percent in the past year.

                          Pulp and Paper

     Most of Waste Management's solid-waste customers produce or
consume pulp and paper. Waste Management collects, processes and
sells more than five million tons a year of paper, plastic, glass,
aluminum and other metals.

     Recycled-cardboard prices fell 62 percent to $48 a ton in the
second quarter from $125 a year earlier, and the price for
recycled newsprint fell to $55 a ton from $90, Myers said in
August. Prices were little changed from the second quarter to the
third quarter, said Steve Ragiel, Waste Management's vice
president of recycling.

     Waste Management, which will report third-quarter results
next week, had expected to begin trading in the third quarter. Its
plans were delayed because it took longer than expected to find
people to run the operation, Raigel said.

     Jeff Harbert, formerly of Enron Corp., is heading the
operation along with two other Enron traders. Enron, also based in
Houston, has created the largest business of trading commodities
including electricity, natural gas, pulp and paper.

                          Risk Management

     Waste Management's initial focus in the trading business will
be on managing its own price risk. It probably only will complete
five to 10 trades in each of the first few months, Raigel said.

     The company hopes to set fixed prices for the commodities it
picks up, then sell those commodities to a third company, such as
a paper producer, at a higher set price.

     ``We'll get with a counter party such as a paper mill or a
consumer-products company and cut a deal,'' Raigel said. ``We can
find a paper mill that wants to lock in a fixed price on what they
buy and what they sell. They get a minimum return on their
investment and greater control on their raw material costs.''

     The company hasn't said how much it expects to make from
trading. Analysts aren't expecting the business to contribute
significantly to Waste Management's earnings.

     ``They are looking at it as a good time to get in on trading
but I don't see it as a major contributor to their business,''
said Stewart Scharf, an analyst with Standard & Poor's Equity
Group. He rates Waste Management ``accumulate'' and doesn't own
shares.

     Republic Services Group Inc., the No. 3 U.S. waste company,
contracts with individual mills to supply recycled commodities at
fixed prices, but hasn't started a trading operation, spokesman
Will Flower said.

     Allied Waste Industries Inc., the second-largest trash hauler
in North America, said it has no plans to get into trading.

     ``We'll leave trading to people like Enron,'' Allied Waste
spokesman Michael Burnett said.

--Mark Johnson in the Princeton newsroom (609) 750-4662

Enron ends 10-day skid with 25% jump
Lisa Sanders
CBSMarketWatch.com
October 31, 2001
HOUSTON (CBS.MW) -- Shares of Enron, which had lost about 66 percent of their value over the past 10 sessions, spiked Wednesday after a report that pegged the beleaguered company as a takeover target.
Enron added 25 percent, or $2.74, to close at $13.90. More than 43 million shares changed hands, making the stock the most actively traded on the New York Stock Exchange.
A.G. Edwards' analyst Michael Heim warned Wednesday against buying Enron shares. He noted that Enron's troubles could be hurting its trading operations, the company's strength.
"People interested in betting on ENE should ask themselves this -- If a person offered to double your money when a coin lands heads and take away half your money when it is tails, would you take the bet? What if the person flipping the coin is a magician you don't trust?"
A Wall Street Journal report Wednesday speculated on Enron's potential as an acquisition for a more stable company. An Enron spokesman said the company doesn't comment on such matters.
Enron has been under pressure for more than two weeks, beginning when the energy merchant reported a $1 billion charge in its third-quarter earnings. A Securities and Exchange Commission probe into two of the company's limited partnerships and a rating downgrade by Moody's Investors Service haven't helped.
John Olson, an analyst at Sanders Morris Harris, said he thought an Enron takeover unlikely at this point.
"However, if the stock were to keep coming down, and their financial difficulties were extended, the odds would increase," he said.
Olson pointed out that Enron's heavy losses over the last 10 sessions partly reflects the end of the tax year for mutual funds. The calendar year for funds ends at the close of business Wednesday.
"Mutual funds who own Enron stock have been trying to offset other gains by selling off Enron," he said. "Mutual funds have to register all their gains or losses and offset them by selling or buying stock by the close today."
Taking bets
Art Smith, chairman and chief executive of the research firm John S. Herold, said he'd be surprised if Enron was not entertaining offers. "It's one of the ways that Enron gets the genie back in the bottle."
On the other hand, Smith said, it would take a potential acquirer time to become comfortable with the valuation of the business.
"It's doubtful that a potential acquirer can resolve all the valuation issues quickly," Smith said. He said it's likely that any sort of purchase agreement would contain what he called a "look-back provision," which would protect the acquirer from being strapped to a fixed value.
Smith said he could see either General Electric's GE Capital or Royal Dutch Shell making a bid. Both were mentioned in the Journal report.
"GE Capital is big enough that if it didn't work out it won't cripple GE, and they've been opportunistic on things like this," Smith said. "And Shell always keeps us guessing."
Olson also included AIG and Citigroup as potential acquirers.
"Enron has certainly had some appeal to people that are used to an aggressive trading culture," he said.
Smith said that even without Enron, the energy marketing and trading business would continue to thrive.
"Even if Enron went away, it would not change what has developed into a healthy market for commodity forward markets and hedging," he said.
Lisa Sanders is a Dallas-based reporter for CBS.MarketWatch.com.

Enron's stock jumps amid takeover speculation
By JUAN. A. LOZANO
Associated Press Writer

10/31/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

HOUSTON (AP) - After plummeting to a nine-year low following recent economic losses and an investigation by federal securities regulators, shares of Enron Corp. jumped nearly 25 percent Wednesday amid speculation the company was ripe for takeover.
Shares of Enron, the largest U.S. natural gas and power marketer, rose dlrs 2.74 to close at dlrs 13.90 Wednesday on the New York Stock Exchange. Though still down 69 percent since the company reported third quarter earnings just over two weeks ago.
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said Wednesday's surge was likely a reaction to a The Wall Street Journal report that Enron's beaten-down stock price has stirred rumors of a possible takeover.
Others may be buying figuring the stock has hit bottom, she said.
On Tuesday, Enron's stock closed at dlrs 11.16, its lowest level since 1992.
Enron shares began their steady fall in the middle of October, when the company reported a net loss of dlrs 638 million in the third quarter, taking a one-time charge of dlrs 1.01 billion attributed to investment losses, troubled assets and unit restructurings.
Some of these losses have been tied to partnerships managed by Enron's former chief financial officer, Andrew Fastow, who was ousted last week.
The potential conflict of interest has prompted an inquiry by the Securities and Exchange Commission.
Earlier this week, Moody's Investors Service downgraded the company's long-term debt and warned of possible further downgrades.
Potential buyers include General Electric's GE Capital unit, Warren Buffett's Berkshire Hathaway and Royal Dutch Shell, the Journal said.
Duane Grubert, an analyst with Sanford C. Bernstein and Co. in New York, said Shell, which has a small presence in energy marketing, would be a good fit.
"Shell tried to be in the merchant energy arena and didn't really succeed," he said. "To buy into an established franchise must be attractive to Shell."
While Enron's stock price has made it attractive, Coale said the energy marketer's problems present a substantial drawback.
"I would fault a company for acquiring Enron with all of this hanging over it," she said. "There are too many uncertainties."

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

Class Action Lawsuit Commenced Against Enron Corp. By The Law Offices of Marc S. Henzel

10/31/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

BALA CYNWYD, Oct. 31 /PRNewswire/ -- A class action lawsuit was filed in the United States District Court for the Southern District of Texas, on behalf of purchasers of the common stock of Enron Corp. (NYSE: ENE) between January 18, 2000 and October 17, 2001, inclusive. The action is pending against defendants Enron, Kenneth Lay, Jeffrey K. Skilling and Andrew Fastow.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between January 18, 2000 and October 17, 2001, thereby artificially inflating the price of Enron common stock. Specifically, the complaint alleges that Enron issued a series of statements concerning its business, financial results and operations which failed to disclose (i) that the Company's Broadband Services Division was experiencing declining demand for bandwidth and the Company's efforts to create a trading market for bandwidth were not meeting with success as many of the market participants were not creditworthy; (ii) that the Company's operating results were materially overstated as result of the Company failing to timely write-down the value of its investments with certain limited partnerships which were managed by the Company's chief financial officer; and (iii) that Enron was failing to write-down impaired assets on a timely basis in accordance with GAAP. On October 16, 2001, Enron surprised the market by announcing that the Company was taking non-recurring charges of $1.01 billion after-tax, or ($1.11) loss per diluted share, in the third quarter of 2001, the period ending September 30, 2001. Subsequently, Enron revealed that a material portion of the charge related to the unwinding of investments with certain limited partnerships which were controlled by Enron's chief financial officer and that the Company would be eliminating more than $1 billion in shareholder equity as a result of its unwinding of the investments. As this news began to be assimilated by the market, the price of Enron common stock dropped significantly. During the Class Period, Enron insiders disposed of over $73 million of their personally held Enron common stock to unsuspecting investors.
Plaintiff is represented by The Law Offices of Marc S. Henzel. If you are a member of the class described above, you have until December 21, 2001, to participate in the case and ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
If you have any questions concerning this case or your rights or interests with respect to these matters, please contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by telephone at (888) 643-6735 or (610) 660-8000, by facsimile at (610) 660-8080, by e-mail at Mhenzel182@aol.com or visit the firm's website at http://members.aol.com/mhenzel182.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X40385151

/CONTACT: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, +1-888-643-6735 or +1-610-660-8000, fax: +1-610-660-8080, or Mhenzel182@aol.com/ 16:50 EST
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Some Enron Trading Customers Tighten Credit Reins, Cut Trades
2001-10-31 16:05 (New York)

     New York, Oct. 31 (Bloomberg) -- American Electric Power Co.,
Exelon Corp. and Northeast Utilities are among energy companies
restricting business with Enron Corp. as the largest energy trader
negotiates a credit line to keep access to cash.

     ``We are keeping a tight dollar limit on trades,'' said John
Rowe, co-chief executive officer of Exelon, the largest U.S.
nuclear power producer. ``We are keeping a close eye on our
exposures.''

     Enron has said it is seeking new sources of credit as the
company tries to assure trading partners and rating agencies that
it can meet day-to-day obligations and keep its investment-grade
credit rating. Enron, which handles 25 percent of the energy
trading in the U.S., relies on having investment-grade credit to
borrow enough to settle its transactions daily.

     Enron Corp. shares, down 59 percent since Oct. 16, rose 25
percent today to $13.90 from a nine-year low amid speculation the
company may be a takeover target. Still, Enron stock is down 83
percent this year.

     Moody's Investors Service last week lowered Enron's long-term
debt to two notches above junk status and placed Enron's
commercial paper on review for downgrade.

     ``We will be tracking very closely their wholesale volumes,''
said Stephen Moore, a vice president at Moody's. ``That will be
the leading indicator of where the company is going.''

                           Credit People

     Energy trading accounted for about 98 percent of Enron's $773
million in income before interest and taxes last quarter. The
company last week drew down a $3 billion credit line after
surprising investors by writing off $1.2 billion of shareholder
equity. The company also ousted its Chief Financial Officer Andrew
Fastow after it reported that a partnership he set up lost $35
million for the company. The Securities and Exchange Commission
has asked the company questions about partnerships like Fastow's.

     Enron spokeswoman Karen Denne said the company's trades have
not declined in size while natural gas trading volume has dipped
consistent with monthly pattern.

     Some energy executives said yesterday that companies were
limiting Enron trading to reduce credit risks.

     ``Credit people are coming to their traders and saying,
`Enron is on hold for any new positions, and at some point we may
need you (to) trade out of your existing positions,''' said
Charlie Sanchez, an energy markets manager at Houston-based Gelber
& Associates Corp., an energy trading adviser.

                         Watching Closely

     Minneapolis, Minnesota-based Xcel Energy Inc., an electricity
and natural-gas seller, is limiting its business to same-day and
next-day delivery, Chief Executive Officer Wayne Brunetti said at
an energy conference in New Orleans. American Electric Power Chief
Executive Linn Draper said at the same conference that his company
is also making only short-term trades.

     ``We are watching very closely,'' Draper said. ``We are
focusing our new deals with them in the short term, November,
December. We think they'll make it, but it's a serious
situation.''

     Northeast Utilities, based in Berlin, Connecticut, will
continue to trade with Enron as long as its debt ratings remain
investment grade, said Chief Financial Officer John Forsgren, also
at the conference. Northeast is New England's biggest utility
owner.

     ``Three weeks ago, we started monitoring our position with
Enron,'' said Forsgren. ``Right now, we have a net payable to
them, so there's no exposure on our side, and we'll probably keep
it that way.''

                             Overblown

     Many companies say that Enron remains the most economical and
efficient place to trade electricity, and that the company's
credit woes are overblown.

     ``We're still actively trading with them and we believe they
will work their way out of this,'' said Mike Griswold, a trader
with Hafslund Trading Co., a subsidiary of Norwegian energy
company Hafslund ASA. ``They have the best liquidity and the best
prices. They are the premier trading market.''

--David Ward and Bradley Keoun in San Francisco

USA: Enron rebounds, but investors seek more disclosure.
By Carolyn Koo

10/31/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 31 (Reuters) - Shares of Enron Corp. snapped back from 10 straight days of losses on Wednesday after investors said the deep plunge had made the stock attractive.
Shares of Houston-based Enron, which lost more than $17 billion in market capitalization during the rout, surged almost 27 percent in heavy trade, making the stock second-most active on the New York Stock Exchange and third-biggest gainer by percentage.
Despite the surge, investors and analysts said they were still dissatisfied with Enron's failure to disclose key information and said the rebound could prove short-lived for the largest trader of natural gas and power in North America.
"At this level the stock is attracting money. However, the near term is not going to be good," said Tim Ghriskey, president of money managers Ghriskey Capital Partners LLC.
"We don't own any Enron. We have in the past and sold a while ago. We've been tempted a couple of times during the slide, but the information flow is not that strong, and there is potential for more negative surprises."
Enron closed up $2.74, or 24.6 percent, to $13.90 on the NYSE. The stock surged to an intraday high of $14.17, recouping the past two days of losses, but is far from $33.84, the closing price for Enron on Oct. 16, the last day before the 10-day tumble began.
Enron shares have been hammered over the past two weeks amid a series of unwelcome disclosures, including murky off-balance-sheet deals with partnerships once run by Chief Financial Officer Andrew Fastow.
The disclosures forced Fastow's ouster, led to a Securities and Exchange Commission inquiry into Enron and caused at least one credit rating agency to cut Enron's senior-debt credit status.
The company said Fastow's removal was aimed at assuaging investor concerns as the almost daily disclosures forced it to draw down about $3 billion from existing credit lines.
TRYING TO QUANTIFY 'WORST-CASE SCENARIO'
But that's not enough, say analysts and investors.
"Enron needs to substantially improve the level of disclosures," said Nitin Khandkar, a portfolio manager with Dubai-based Al Majid Investment Co., which owns Enron stock. "The accounting policies it follows should not be merely legal but should also reflect the company's true profitability."
As an industry heavyweight, "investors expect Enron to come clean on the controversial issues," he said.
One issue Enron would do well to address is its partnerships and the liabilities they may have.
"People are still struggling with trying to quantify what the worst-case scenario could be," said Mike Heim, an analyst with A.G. Edwards & Sons, of the existing partnerships.
"Instead of dismissing the worst-case scenario, I think it would make sense to mathematically show that 'here's what happens under such a scenario' and then let analysts make their own assessments."
Enron's refusal to make public its finances with greater transparency is a hallmark of arrogance, noted one academic.
"The lack of transparency is an arrogance that says, 'I don't have to explain anything because if people don't want to buy my shares, they can just sit and spin,'" said Paul Kedrosky, a professor at the University of British Columbia who sits on the board of Exponentia, a company dedicated to improving communications with shareholders.
"It's an arrogance that says, 'I do not have to disclose anything until I am forced to,'" Kedrosky said. "The crucial thing is to disclose early and disclose all."

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

Waiting for Balance Sheets Amid Enron's Debacle: David Wilson
2001-10-31 16:39 (New York)

     (Commentary. David Wilson is a columnist for Bloomberg News.
The opinions expressed are his own.)

     Princeton, New Jersey, Oct. 31 (Bloomberg) -- International
Business Machines Corp.'s press release about its third-quarter
results included this statement, attributed to Louis Gerstner,
chairman and chief executive officer:

     ``IBM's balance sheet remains among the strongest in the
technology industry, or any industry.''

     The largest maker of computers and provider of computer
services wasn't the only company to cite its balance sheet, a
statistical summary of what a company owned, what it owed, and
what was left over for shareholders on a specific date.

     General Electric Co., the largest company by stock market
value, and Citigroup Inc., the No. 1 financial-services company,
made similar references in their third-quarter releases.

     None of the companies really showed people what they were
telling them. IBM, General Electric and Citigroup are among 19
members of the Dow Jones Industrial Average whose most recent
quarterly releases didn't include balance sheets.

     The evidence will come only when the companies submit their
quarterly reports to the U.S. Securities and Exchange Commission.
Balance sheets are required in the so-called 10-Q filings, along
with the 10-K filings that cover the full year.

                        Not Much Publicity

     By then, statistics about the companies' assets, liabilities
and shareholders' equity, the accounting terms for what's owned,
what's owed and what's left over, will be rather outdated.

     U.S. companies have 45 days from the end of a fiscal quarter
to submit 10-Q reports, and 90 days from the end of a fiscal year
for 10-K reports.

     These filings usually don't arrive until weeks after the
publication of earnings releases. So it's easy to overlook the
additional information they provide, especially when it doesn't
receive the kind of publicity that the earnings release does.

     Yet the recent example of Enron Corp. -- another company that
omits balance sheets from press releases -- provides evidence that
investors who forgo the extra effort needed to find them do so at
their own peril.

     Enron, the largest energy trader, reported $1.01 billion in
``non-recurring'' costs in the third quarter from an expansion
into water, telecommunications and retail-energy sales. The
expense contributed to a $618 million loss for the quarter.

     These numbers were part of the Houston-based company's income
statement, a summary of sales, costs and expenses, and profits or
losses during a specified time period. Income statements are the
cornerstone of any company's earnings release.

                      Billion-Dollar Numbers

     The release didn't even mention a larger figure that affected
the balance sheet: a $1.2 billion drop in shareholders' equity
during the quarter resulting from the company's repurchase of 55
million shares from two partnerships, LJM Cayman LP and LJM2 Co-
Investment LP, that helped finance projects. Andrew Fastow, who
ran both partnerships, was ousted from his job as chief financial
officer last week.

     Chairman and CEO Kenneth Lay disclosed the repurchase in a
subsequent conference call.

     Such a one-two punch dealt a blow to investors' fortunes.
Since Oct. 17, the day after the earnings release, Enron's shares
have fallen each day and have lost two-thirds of their value. The
low of $10.90 yesterday was the lowest price since July 1992.

     Enron's third-quarter statement referred only to a loss on
``finance arrangements with a previously disclosed entity'' which
contributed to $544 million of investment losses. The size of that
item was later put at $35 million.

     The latter number amounts to just 3.5 percent of the overall
figure for ``non-recurring'' costs, and less than 1 percent of the
company's $47.6 billion in revenue for the quarter.

                        Growing Debt Burden

     The $1.2 billion figure is considerably larger not only in
dollars, but also in percentage terms. Enron had $11.74 billion of
shareholders' equity as of June 30, according to the balance sheet
in its second-quarter 10-Q filing. The reduction equaled more than
10 percent of that total.

     Among other things, the balance sheet also shows that the
company relied more heavily on debt financing during this year's
first half. Short-term debt, due in one year or less, doubled to
$3.46 billion. Long-term debt, maturing in more than one year,
rose 9.4 percent to $9.36 billion.

     There's even more to the story of Enron's indebtedness. The
company guaranteed $3.3 billion in borrowing by Osprey Trust and
Marlin Water Trust, which bought some of its power plants. Unless
they pay off the debt by reselling the plants, the company may
have to come up with the difference.

     Nevertheless, any summary of a company's financial position
provides a more complete picture than the income statement alone.
This also holds true for companies whose finances are in better
shape -- IBM, General Electric and Citigroup, to name three.

                        Knowing by Showing

     Other members of the Dow industrials that wait until their
filings to provide balance sheets are American Express Co., AT&T
Corp., Boeing Co., Caterpillar Inc., Coca-Cola Co., Walt Disney
Co., DuPont Co., Eastman Kodak Co., Exxon Mobil Corp., General
Motors Corp., Honeywell International Inc., Johnson & Johnson,
McDonald's Corp., Merck & Co., Procter & Gamble Co. and SBC
Communications Inc.

     Companies that include them in releases are Alcoa Inc.,
Hewlett-Packard Co., Home Depot Inc., Intel Corp., International
Paper Co., Microsoft Corp., Minnesota Mining & Manufacturing Co.,
J.P. Morgan Chase & Co., Philip Morris Cos., United Technologies
Corp. and Wal-Mart Stores Inc.

     Citigroup's third-quarter earnings release has this quote
from Sandy Weill, chairman and CEO: ``We have the balance sheet
strength to make timely acquisitions to expand our franchises.''
The New York-based company had more than $85 billion of ``total
equity,'' Weill said in the statement.

     General Electric's release quoted Chairman and CEO Jeffrey
Immelt as saying ``our strong balance sheet, which gives us the
flexibility to pursue strategic opportunities,'' is one of the
Fairfield, Connecticut-based company's ``fundamental strengths.''

     Investors can only take these CEOs at their word for now.
Their companies, and many others, are only telling rather than
showing -- at least in their earnings releases.

Enron Shares Rise, Rebounding From Nine-Year Low (Update3)
2001-10-31 16:20 (New York)

Enron Shares Rise, Rebounding From Nine-Year Low (Update3)

     (Closes shares.)

     Houston, Oct. 31 (Bloomberg) -- Enron Corp. shares jumped 25
percent, one day after falling to their lowest level in more than
nine years, amid speculation the company may be a takeover target.

     Shares of the top energy trader rose $2.74 to $13.90 in
trading of 43.4 million shares, more than four times the three-
month daily average of 10.4 million. The shares reached $14.20
earlier in the day.

     Shares of Houston-based Enron have fallen 83 percent this
year. They have dropped 49 percent this month amid a U.S.
Securities and Exchange Commission inquiry into partnerships
headed by Andrew Fastow, Enron's former chief financial officer.
Fastow was ousted last week in an attempt to restore confidence in
the stock.

     ``There are rumors out there that they are a potential
takeover target, but I think it's very unlikely that anyone will
buy them out at this point,'' said Zach Wagner, an analyst at
Edward Jones & Co. ``There are too many uncertainties.''

     Enron is more likely to get a large cash infusion from an
investor, Wagner said. Wagner has a ``reduce'' rating on Enron
shares. He doesn't own the stock.

     The Wall Street Journal today said General Electric Co.'s GE
Capital, Warren Buffett's Berkshire Hathaway Inc. and Royal Dutch
Petroleum Co. are ``among the names bandied about'' as potential
buyers for all or part of Enron.

     Merrill Lynch analyst Donato Eassey said in a report issued
today that Enron has a net asset value of $16 to $24 a share. He
based that on a total asset value of $32 billion to $38.6 billion
and total obligations of $18.2 billion.

     Eassey has a ``near-term accumulate'' rating on Enron's
shares. He said Enron should be considered as an investment for
``high-risk profile investors'' because of the uncertainty
attached to the company.

--Margot Habiby in the Dallas newsroom (214) 954-9452


I would like to take this brief opportunity to thank you all for inviting me
to visit Enron.? The day was extremely interesting and educational for me and
I was extremely impressed by the people and environment Enron had to offer.

I look forward to speaking with you about this opportunity in the near
future.

Sincerely,

Michael Gorman

Michael F. Gorman, Ph.D.
(w) 817 352-2396
(c) 817 296-3273
(f)? 817 352-6300


OOPs I forgot the date-  you are correct-  MK

Shelley Corman
11/13/2000 02:11 PM
To: Mary Kay Miller/ET&S/Enron@ENRON
cc: Drew Fossum/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON, Mary Darveaux/ET&S/Enron@ENRON

Subject: Re: TW options filing

I thought that was the point of requesting a December 1 date -- so that the
Commission had a longer period to act.  Since we requested an effective date
with more than 30 days advance notice (but less than 60 days per 154.207 of
the regs), then the Commission has until the effective date to act? ( NGA
717c.)

	From:  Mary Kay Miller                           11/13/2000 12:16 PM

To: Drew Fossum/ET&S/Enron@ENRON, Susan Scott/ET&S/Enron@ENRON, Shelley
Corman/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary
Darveaux/ET&S/Enron@ENRON
cc:

Subject: TW options filing

At this mornings staff meeting, Stan asked about the status of TW options
filing,  Shelley indicated that she felt it would be on the Nov 21 st
agenda.  The 30 days to act is up on Nov. 16th, if the FERC hasn't done
anything aren't the tariff sheets approved as filed?? If that answer is yes,
isn't an order after that date required to meet the SS 5 requirements??
Just thinking about the timing-  MK


I'm attaching a revised draft of the option to purchase the land for the
VEPCO deal.  I've limited it to the land in Edgecombe County, changed the
initial period to 90 days (with 3 x 90 day renewals).  The price is changed
to $137,600, as have the option payments ($3500 for each 90 day period).  Is
there anything else which needs to be changed?

FYI, I've left a message for Dutch Bumgarnder, VEPCO's lawyer, concerning the
interconnection agreement, and who is doing what.

Thanks,

Kay


Got 'em.  Thanks a million.

	Karen Denne/ENRON@enronXgate
	07/31/2001 05:25 PM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: RE: Letter to Senators

You poor thing!  Did you get the faxes I sent?  Hang in there and holler if
there's anything I can do to help. kd

 -----Original Message-----
From:  Dasovich, Jeff
Sent: Tuesday, July 31, 2001 4:59 PM
To: skean@enron.com; Denne, Karen; Shapiro, Richard; Mara, Susan; Kaufman,
Paul; Scott Govenar; hgovenar@govadv.com; Sanders, Robert
Subject: Letter to Senators

Bear with me.  I want to work on it through the evening.  Will make sure that
it's out tonite, well in advance of tomorrow's 1 PM PDT conference call.

Best,
Jeff


Thanks!  We are looking forward to it in a big way--mostly because its still
winter up in the big O!  df

From: Kimberly Watson/ENRON@enronXgate on 03/08/2001 07:54 AM
To: Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: FW: Organization Announcement

Drew,

Congratulations!  I can think of no better person for the job!  I look
forward to seeing you in the hallways of the Enron Building!  I hope you and
your family will love living in Houston as John and I do.  See you soon, Kim.

 -----Original Message-----
From:  ETS General Announcement/ET&S/Enron@ENRON
[mailto:IMCEANOTES-ETS+20General+20Announcement_ET+26S_Enron+40ENRON@ENRON.com
]  On Behalf Of Stan Horton, Chairman & CEO@ENRON
Sent: Wednesday, March 07, 2001 10:58 PM
To: Enron Transportation Services Operations@ENRON
Subject: Organization Announcement

Michael Moran, currently Managing Director and General Counsel for ETS, has
decided to retire after a distinguished 27-year career with Enron.   Mike has
been a conscience and a statesman of our organization and it is hard for me
to imagine the ETS organization without Mike.

Fortunately, Drew Fossum, currently Vice President and General Counsel for
Northern Natural Gas and Transwestern, has accepted my offer to become Vice
President and General Counsel of ETS effective April 1, 2001.  Drew will
relocate to Houston and report to me in his new role.

To assist with transition issues and special projects, Mike has agreed to
stay on board for several months as Managing Director and Special Counsel to
the Chairman and will continue to report to me.

Please join me in congratulating Drew on his new assignment and thanking Mike
for his many contributions to ETS and Enron.


Don,

It was a pleasure talking with you yesterday evening. Thank you for making
the time to meet with us. I am looking forward to working with you on this
index. Your comments and suggestions are always welcome.
I am attaching the spreadsheet for you to enter your trades. Again, if you
need something different, just let me know.

Lisa Lawson
Markets Editor
Megawatt Daily
713 939-5802
llawson@ftenergy.com <mailto:llawson@ftenergy.com>

 <<CinergyHourlyTradesReport.xls>>

 - CinergyHourlyTradesReport.xls


Barbara, HR should be contacting you about interviewing him next week..  A
number of folks are interested in Carlos!  Thanks for the response.  Michelle

From: Barbara N Gray on 12/05/2000 09:08 AM
To: Michelle Cash/HOU/ECT@ECT
cc: Jeffrey T Hodge/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT
Subject: Re: Opportunities at ENA

 I think we should speak with this candidate about a position in our
group..................working with Peggy on Mexican matters

	Michelle Cash
	12/04/2000 10:04 PM

		 To: Lance Schuler-Legal/HOU/ECT@ECT, Travis McCullough/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Alan Aronowitz/HOU/ECT@ECT, Julia Murray/HOU/ECT@ECT,
Elizabeth Sager/HOU/ECT@ECT, Bruce
Lundstrom/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sheila Tweed/HOU/ECT@ECT,
Jeffrey T Hodge/HOU/ECT@ECT, Barbara N Gray/HOU/ECT@ECT
		 cc: Mark E Haedicke/HOU/ECT@ECT
		 Subject: Opportunities at ENA

Attached is the resume of Carlos Sole, who currently is working for EECC.  He
is interested in pursuing opportunities within EWS, and we received excellent
references about his work performance from John Schwartzenburg and Kay Mann.
I am meeting with him on Friday of this week (he is out of town until then).
If you have an interest in talking with him, let me know, and I will arrange
a meeting.

Thanks.  Michelle

---------------------- Forwarded by Michelle Cash/HOU/ECT on 12/04/2000 09:47
PM ---------------------------
From: Carlos Sole@ENRON_DEVELOPMENT on 12/01/2000 09:36 AM
To: Michelle Cash/HOU/ECT@ECT
cc: John Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Opportunities at ENA

Michelle, per my voicemail as I indicated, I am trying to pursue what
opportunities may be available at EWS and both Julia Murray and Kay Mann
recommended that I contact you.  As background, I have been at EECC since
October last year where I have focused on traditional EPC contracts and joint
venture agreements with construction partners, cross-border financing
agreements principally in Mexico and merger and acquisition/strategic
investment transactions.  Before coming to Enron, I worked with the Houston
office of a New York based firm (Curtis, Mallet-Prevost, Colt & Mosle)  where
I focused mostly on transactions in Mexico since we represented Pemex on
their transactions involving long and short term oil supply agreements and
CFE (Mexico's electricity commission) on its public bids for EPC and IPP
projects.  Lastly, I started my legal career in 1994 at Patton Boggs in
Washington, DC where I focused on general domestic corporate transactions
such as establishing new business entities (ie, joint venture work,
partnerships etc.), m & a work, and securities offerings.  Thanks for your
consideration and I look forward to talking with you when you return from
vacation (my extension is 6-6127).


We have received the executed EEI agreement from the referenced CP dated
12/30/00.  Copies will be distributed to Legal and Credit.


---------------------- Forwarded by Sara Shackleton/HOU/ECT on 05/25/99 11:56
AM ---------------------------

Paul Simons
05/25/99 11:04 AM
To: ECT London
cc: Sara Shackleton/HOU/ECT@ECT, Morris Richard Clark/HOU/ECT@ECT, Stephen H
Douglas/HOU/ECT@ECT, Mark - ECT Legal Taylor/HOU/ECT@ECT
Subject: SEMPRA

It has recently emerged that we have concluded financially-settled trades
from London with Sempra in the name of ECT (Houston).

Unfortunately, this could create a significant tax issue for ECT (Houston)
i.e. a taxable presence in the UK.

Therefore, if we wish to continue trading with Sempra from London, we must
trade in the name of ECTI (aka ECTRIC), but not ECT (Houston).

This principle applies generally  - London should not bind ECT (Houston) to
trades with counterparties.

Please call Janine Juggins or myself if you would like to discuss this.

Best regards

Paul


Part 3 of 3

The Blue Chips

Here's my updated list of the state's top 100 senior prospects. The ones
above the **** at each position are my Fabulous 50. Favorite schools and
commitments are listed.

The Top 100 Recruits

Quarterback (8)
Vincent Young, 6-5, 200, 4.5, Houston Madison (Mia, UT, LSU, OU, Tenn)
Billy Don Malone, 6-2 1/2, 185, 4.7, Paris North Lamar (UT Commitment)
Austin Flynn, 6-2, 180, 4.6, Deer Park (Colo, Syr, ISU, Ark, Pur)
* * * *
Jamie Beeghley, 6-2, 190, 4.6, Midland Christian (TT, A&M, Colo, ND)
Chad Schroeder, 6-1, 165, 4.45, Austin Westlake (Purdue Commitment)
Noah Allen, 6-3, 180, 4.7, Pearland (Oklahoma Commitment)
Wes Bankston, 6-3, 200, 4.7, Plano East (LSU, A&M, OU, LSU)
Jeff Ballard, 6-2, 195, 4.6, Friendswood (A&M, TT, Bay, Ky, UCLA)
Running Back (9)
Albert Hardy, 5-11, 225, 4.5, Galena Park (UT, LSU, ND, Colo, OU)
Paul Mosley, 6-2, 210, 4.4, Austin Anderson (Neb, OU, Az)
Selvin Young, 5-10, 190, 4.5, Jersey Village (LSU, OU, UCLA, Colo, UT, Mich)
* * * *
Phillip Fuller, 5-10, 185, 4.4, Irving Nimitz (OU, KSU, A&M, LSU, TCU)
Quinton Broussard, 5-10, 190, 4.4, The Colony (ND, Iowa, Wis)
Jerome Lewis, 5-10, 170, 4.4, Carrollton Turner (OU, Ark, Kan, NW, Duke)
Greg Gold, 5-10, 190, 4.4, Irving (Oklahoma State Commitment)
Scott Ballew, 5-11, 185, 4.42, Austin Westlake (Stan, Wis, Cal)
Dominique Owens, 5-10, 185, 4.45, Fort Bend Kempner (A&M, Neb, LSU, FSU)

Tight End (5)
Eric Winston, 6-6, 275, 4.9, Midland Lee (A&M, UT, ND, Mich, Neb, Mia)
David Thomas, 6-3, 215, 4.7, Wolfforth Frenship (UT  Commitment)
* * * *
Gabriel Hall, 6-4, 225, 4.7, Lubbock Coronado (TT, A&M, OU)
Chad Jorgensen, 6-6, 220, 4.8, San Marcos Baptist (Louisville Commitment)
Maurice Bouldwin, 6-4, 240, 4.8, La Grange (TCU Commitment)

Wide Receiver (12)
Robert Timmons, 6-2, 190, 4.4, FM Marcus (Tenn, UT, Mia, USC, KSU)
Biren Ealy, 6-4, 195, 4.48, Cypress Falls (FSU, Fla, OU, LSU, UT, A&M)
Damien Collins, 6-3, 195, 4.4, Dallas Bryan Adams (OSU, Tenn, OU, FSU)
Broderic Jones, 5-11, 175, 4.4, Ennis (West Virginia Commitment)
Anthony Wright, 6-3, 210, 4.5, Klein Forest (UT, A&M, LSU, Mia, FSU)
J. T. Perry, 6-2, 180, 4.4, Allen (West Virginia Commitment)
* * * *
Travis Wilson, 6-2, 190, 4.5, Carrollton Creekview (A&M, Mia, ND, OU, TCU)
Dustin Miksch, 6-0, 167, 4.4, Round Rock Westwood (UT Commitment)
J. C. Hunter, 6-1, 180, 4.5, Baytown Lee (OU, KSU, A&M, UT, Pur)
James Elliott, 6-4, 185, 4.5, Sonora (ND, LSU, KSU, TCU)
Xavier McGuire, 6-5, 212, 4.6, Dallas Carter (OU, GT, Mia, LSU, Ok St, Ala)
Chad McCullar, 5-10, 170, 4.5, GP North Shore (Az, A&M, FSU, UT, LSU, PSU)

Offensive Line (11)
Justin Blalock, 6-3, 330, 5.0, Plano East (UT, OU, Mich, FSU, Neb, Fla, A&M)
Bob Morton, 6-4, 300, 5.2, McKinney (Notre Dame Commitment)
Brett Valdez, 6-4, 310, 5.2, Brownwood (UT Commitment)
Jeff Lebby, 6-5, 275, 5.1, Andrews (Oklahoma Commitment)
Tony Ugoh, 6-5, 275, 5.0, Spring Westfield (Ala, UT, OU, Fla, Ark, A&M, GT)
Neale Tweedie, 6-5, 255, 4.9, Allen (UT Commitment)
* * * *
Josiah Vinson, 6-4, 290, 5.1, Irving (ND, Stan, GT, KSU, A&M, OU)
Kyle Williams, 6-6, 260, 5.2, Dallas Highland Park (OU, A&M, USC, Stan, UCLA)
LaQualon McDonald, 6-3, 330, 5.3, Waco (A&M, OU, LSU, FSU)
Cody Douglas, 6-3, 320, 5.3, LaMarque (A&M Commitment)
Steven Brent, 6-3, 265, 5.0, Georgetown (Neb, TCU, SMU)

Defensive End (8)
Larry Dibbles, 6-2, 275, 4.7, Lancaster (OU, UT, ND)
Travis Leitko, 6-6, 250, 4.7, The Woodlands (Mich, ND, UT, Stan, A&M, PSU)
Dontriel Coates, 6-3, 270, 4.8, Anahuac (Ky, Ark)
Hosea Atkinson, 6-4, 230, 4.6, Hstn Washington (FSU, Mich, A&M, Ark, LSU)
* * * *
Dale Dixson, 6-3, 265, 4.8. Garland (A&M, ND, Neb, OU)
Nick Owino, 6-2, 225, 4.7, Alief Elsik (UT, A&M, LSU)
Danny Ellis, 6-3, 260, 4.7, Cleveland (A&M, LSU, UCLA, OU, LSU)
Corey Ford, 6-4, 240, 4.8, Dallas Skyline (A&M, Fla, UT, FSU, Bay, SMU)

Defensive Tackle (9)
Rodrique Wright, 6-5, 315, 5.0, Alief Hastings (UT, OU, A&M, LSU)
Earl Anderson, 6-3, 265, 4.8, San Marcos (UT Commitment)
Marco Martin, 6-3, 310, 4.8, Mesquite (UT, FSU, A&M, Tenn, Neb)
Tully Janszen, 6-4, 260, 4.8, Keller (UT Commitment)
Joseph Edwards, 6-2, 260, 4.9, Dayton (LSU, OU, UT, Mo, A&M)
* * * *
Taurean Brown, 6-5, 275, 4.9, Katy Cinco Ranch (A&M, UT, UCLA Fla, LSU, ND)
Quintin Echols, 6-3, 275, 5.0, Fort Worth Wyatt (Tenn, GT, OU, A&M)
Brian Patrick, 6-4, 270, 5.0, Pasadena Sam Rayburn (Texas A&M Commitment)
Fred Jackson, 6-4, 280, 5.0, Hallsville (OU, Iowa, Az, Wash, Syr, TCU)

Outside Linebacker (9)
Marvin Byrdsong, 6-3, 235, 4.6, Longview (Miss. St, LSU, UT, A&M)
Garnett Smith, 6-2, 221, 4.54, Arlington Lamar (UT Commitment)
Jimmy Morris, 6-2, 205, 4.6, Dallas Skyline (Iowa State Commitment)
Kelvin Flood, 6-2, 210, 4.6, Dallas Kimball (WV, Mich, A&M, Fla, LSU)
* * * *
Glenn Jackson, 6-0, 210, 4.6, Carrollton Turner (ND, Neb, UT, A&M)
Nurahda Manning, 6-2, 222, 4.7, Bay City (A&M, LSU, Colo, UH)
Ed Jackson, 6-3, 215, 4.6, LaMarque (A&M, UH, UCLA, Mia, Bay)
Pagitte McGee, 6-0, 205, 4.6, Tyler (A&M, OU, UCLA, KSU)
Kellen Tillman, 6-2, 202, 4.5, Plano West (OU, FSU, LSU, A&M, WV)

Inside Linebacker (6)
Aaron Harris, 5-11, 225, 4.7, North Mesquite (UT, A&M, OU)
Brian Robison, 6-3, 243, 4.6, Splendora (UT Commitment)
Roman Taylor, 6-0, 230, 4.7, Diboll (A&M, UH, LSU)
Archie McDaniel, 6-1, 215, 4.7, Bay City (A&M, LSU, OU, UH, Colo)
* * * *
Micah Woods, 6-0, 230, 4.7, Houston Sterling (LSU, PSU, KSU, Ky, Tenn)
Andy Matakis, 6-3, 225, 4.6, CC Flour Bluff (A&M Commitment)

Cornerback (6)
Ricky Wilson, 5-11, 176, 4.4, Port Arthur Lincoln (FSU, UT, Fla, A&M, Ark)
Michael Hawkins, 6-1, 180, 4.4, Carrollton Turner (OU Commitment)
Donald Burgs, 6-0, 180, 4.4, Houston Madison (Colorado Commitment)
* * * *
Willie Andrews, 5-10, 170, 4.4, Longview (A&M, Tenn, Ala, UT, OU, Bay)
Kendrick Muckelroy, 6-0, 180, 4.4, Hallsville (OU, A&M, LSU, Neb, TCU)
Vance Washington, 6-0, 170, 4.4, Hstn Clear Brook (Colorado Commitment)

Safety (7)
Vickiel Vaughn, 6-1, 183, 4.5, Plano West (ND, Mia, WV, Ark, A&M, UCLA, OU)
Matthew Melton, 5-11, 190, 4.43, Tyler (UT, A&M, Neb, Ala)
Brodney Pool, 6-3, 195, 4.5. Houston Westbury (LSU, Kan, UT, ASU, UCLA)
* * * *
Bam Harmon, 6-1, 180, 4.5, The Colony (Basketball)
David Lott, 6-1, 175, 4.5, Aldine Eisenhower (A&M, FSU, UT, LSU)
Matt Fawley, 6-0, 200, 4.5, Richardson Pearce (LSU, UT, A&M, ASU, Neb)
Thomas Wright, 6-0, 180, 4.5, Sweeny (LSU, A&M, OU, Ark, Neb)

Athlete (9)
Edorian McCullough, 5-11, 175, 4.25, N Garland (OU, UT, A&M, FSU, LSU)
Reggie McNeal, 6-3, 180, 4.3, Lufkin (A&M Commitment)
L'Tydrick Riley, 6-4, 218, 4.5, Crockett (A&M Commitment)
DaBryan Blanton, 5-11, 165, 4.25, Forney (Tenn, UT, A&M, TT, TCU)
Brandon Grandberry, 5-11, 175, 4.46, Crowley (A&M, OU, Wis, Tenn, TCU)
Clint Haney, 5-11, 190, 4.27 Smithson Valley (UT Commitment)
* * * *
David Lofton, 6-3, 185, 4.5, Plano West (Stan, Va, Az, ASU, Ind, Wash)
Paul Thompson, 6-4, 190, 4.6, Leander (Oklahoma Commitment)
Jamar Ransom, 5-11, 190, 4.5, El Paso Andress (OU, UCLA, Wis, Stan, PSU, ASU)

Kicker (1)
* * * *
Todd Pegram, 5-10, 175, Plano West (A&M Commitment)
* * * *
The 25 "Difference Makers"
These are Texas' top 25 juniors, in my opinion, and I have seen all of them
play, either on tape or in person:
1. DT Rodrique Wright, Alief Hastings
2. QB Vincent Young, Houston Madison
3. DE Larry Dibbles, Lancaster
4. DT Earl Anderson, San Marcos (UT Commitment)
5. DE Travis Leitko, The Woodlands
6. RB Albert Hardy, Galena Park
7. MLB Aaron Harris, North Mesquite
8. Ath Edorian McCullough, North Garland
9. OLB Marvin Byrdsong, Longview
10. Ath Reggie McNeal, Lufkin (A&M Commitment)
11. LB Garnett Smith, Arlington Lamar (UT Commitment)
12. TE Eric Winston, Midland Lee
13. OL Justin Blalock, Plano East
14. DT Marco Martin, Mesquite
15. S Vickiel Vaughn, Plano West
16. WR Robert Timmons, Flower Mound Marcus
17. LB Brian Robison, Splendora (UT Commitment)
18. C Bob Morton, McKinney (Notre Dame Commitment)
19. CB Ricky Wilson, Port Arthur Lincoln
20. Ath L'Tydrick Riley, Crockett (A&M Commitment)
21. RB Paul Mosley, Austin Anderson
22. Ath DaBryan Blanton, Forney
23. OL Brett Valdez, Brownwood (UT Commitment)
24. QB Billy Don Malone, Paris North Lamar (UT Commitment)
25. CB Michael Hawkins, Carrollton Turner (OU Commitment)
* * * *
Out-of-State Prospects
These out-of-state prospects say they are considering Texas:
DT Kasey Studdard, 6-2, 265, 4.8, Highlands Ranch, Colo (UT, Colo, CSU, Neb)
CB Jonathan Wade, 5-11, 170, 4.3, Shreveport Evangel (Tenn, UT)
DE Bryan Pickryl, 6-6, 230, 4.6, Jenks, Okla. (OU, UT, UCLA, Mo, Mich)
DT Loren Howard, 6-4, 270, 4.8, Scottsdale, Az. (ND, UT, Stan, UCLA, ASU, Neb)
DE Zach  Latimer, 6-4, 222,4.48, Aurora, Colo. (Colo, Mia, OU, Neb, Mo, UT,
UCLA)

That Elusive Top 10

Is this the year the Longhorns finally will finish in that elusive top 10
nationally for the first time since 1983?
The Longhorns are in the top 10 right now at No. 9 in the AP poll and they
will stay in that elite group and even rise a little if they keep winning.
The biggest remaining obstacle to keeping winning is the game Saturday
against 5-1 Colorado.
The Longhorns are 10-point favorites over the Buffaloes, but Colorado, at 5-1
and with a five-game winning streak, is the most dangerous foe left on the
schedule.
Next up will be road trips to 2-3 Missouri ande 2-3 Baylor, teams which have
one Big 12 victory between them this season, followed by a game in Austin
against Kansas, also 2-3.
The Longhorns will be huge favorites in all three of those game.
Then comes the regular season finale at Texas A&M. The Aggies lost to
Colorado, 31-21, Saturday in Boulder to fall from the unbeaten ranks, but the
toughest part of their schedule remains to be played.
If  the Horns keep winning until the A&M game, they will be favored by at
least 10 points.
The Aggies have a good defense, but it isn't as good as the one at Texas, and
the Horns have a clear edge on offense.
So, barring an upset, the Longhorns should head for a bowl game at 10-1 and
with a national ranking in the top 5. A win in the bowl game would cement a
top 5 ranking, but a loss might knock the Horns just out of the top 10 in the
final poll.

Longhorn Game Notes . .

* After opening the game with a  12-play, 65-yard scoring drive, Oklahoma
State had six more possessions in the first half and gained 41 yards on 20
plays. In the second half, OSU started drives at the Texas 36 and 21 after
turnovers, but came away with zero points. After its opening TD drive,
Oklahoma State gained only  97 yards and had 163 for the game, its lowest
total of the season.
* QB Chris Simms was involved in all six  Texas touchdowns with a 1-yard
rushing TD and scoring passes of 27 yards to Brock Edwards, 5 and 16 yards to
Roy Williams and  27 and  23 yards to Sloan Thomas. He fell one short of the
UT record of seven set by Clyde Littlefield against Daniel Baker (4 pass/3
rush) in 1915. The last Longhorn to account for six touchdowns in a game was
Ricky Williams against Rice in 1998.
* Freshman LB Derrick Johnson had two tackles for losses in the first half to
move into a tie for third place on UT's all-time freshman list. He has 10
TFLs for the season, just six short of the Longhorns record held by Tony
Brackens who had 16 in 1993.
* Sophomore WR Sloan Thomas had six catches for 82 yards Saturday. Both were
career bests. His  previous highs were three catches against Missouri in 2000
and 74 yards against Texas A&M in 2000. He tied his career high with two TD
passes, last accomplishing the feat against Missouri.

UT No. 22 in Basketball Poll

The Longhorn men's basketball team has been ranked No. 22 in the ESPN.com
pre-season top 25.
Texas is one of five Big 12 Conference teams selected in the Top 25, joining
Kansas (5), Missouri (8), Oklahoma State (16) and Oklahoma (19).
The Longhorns return 57 percent of their scoring, 69 percent of their
rebounding and 63 percent of their minutes played totals from last year's
25-9 team which finished with a No. 18 national ranking in the AP poll.
Texas starts its exhibition schedule with the annual intrasquad scrimmage at
7 p.m. on Wednesday, October 31 at the Erwin Center.  Admission is free.
For season ticket information, call 800-982-BEVO or 512-471-3333. For
individual game tickets, call 512-477-6060.

Luxurious Austin Townhouse For Sale

Super nice townhouse in great Northwest Hills location. Minutes from UT and
downtown, now is the time to buy. Large with lots of extras and two master
suites. Large 2-car garage. $245,000. Call Lew Goodley, Realtor, at
512-497-7855, for details.

A True Orange Subscription Is
The Gift You Can Give Every
Year to Your Longhorn Friends
A subscription to True Orange is the perfect gift for any occasion for a
Longhorn who has everything else. It's only $45  ($35 by e-mail) and I'll
send  an attractive card announcing your thoughtful gift.
The only thing better is  a gift of  True Orange and the True Orange Fax  -
and you can give both for just $130 a year ($99 if they take both by e-mail).

o  I am enclosing $45 for a gift subscription ($35 e-mail)
o  I am enclosing $130 for a gift subscription to the newsletter and the fax
($99 e-mail)

Name of Recipient

Address (& fax no., if applicable)

City, State, Zip

Your Name

Any Message You Want on Card

 Next Issue October 22
The next issue will be e-mailed on October 22,  and will cover the big game
with Colorado and preview the road trip to Missouri.
I'll also have a lot of recruiting news.
Men's and women's basketball practice and fall baseball practice also are
starting and I'll have reports on how they are progressing.


8...rick lies.


per our discussion

if you integrate this into your existing exchange trading report, or if you
do a separate one for ag trading, could you put my on the distribution on
whatever report has the ag activity -- thanks, Bob
----- Forwarded by Robert Bruce/NA/Enron on 08/17/2000 09:13 AM -----

	Frank Economou
	08/16/2000 10:59 AM

		 To: Elsa Piekielniak/Corp/Enron@Enron, Erin Willis/HOU/ECT@ECT, Aneela
Charania/HOU/ECT@ECT, Matthew Lippert/HOU/ECT@ECT, Robert
Bruce/NA/Enron@Enron, Samantha T Davidson/HOU/ECT@ECT
		 cc:
		 Subject: Report


Robert Snare
117 Wichita Lane
Williamsburg, VA 23188
bcsnare@yahoo.com

To Mr. Ken Lay,

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

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

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

Sincerely,

Robert Snare


Since I did not get a chance to meet with you yesterday, I would like to lay
out a few thoughts in this email:

1. Additional areas that might require immediate attention:

? Consider existing "Bets" and large positions already in the books and ways
of adjusting these bets, if necessary (excluding CA):
  - NY: large short positions behind Central Hudson and ConEd (IBM deal and
others)
  - Carolinas: Standard Offer timing (Springs, Eli Lily, others)
  - Illinois: concentration of short regulated positions

? Quick handle on option positions: do we need to switch customers in some
areas? what options we ought to exercise tomorrow? next week? etc.
  - options embedded in the deals
  - regulatory switch options
  - retail index options
  - EAM options

? Managing value from restructuring legacy deals: in the process of reviewing
the 13 deals, we discovered some provisions in the contracts that were not
captured and managed properly - they might require immediate attention to
minimize losses in these deals.

2. Managing Regulatory Exposure

? Approximately 80% of EES regulatory exposure is behind 40 utilities
? In the process of rate case decomposition, we need to identify the main
components of each rate structure - create a rate case formula
? These components will fall into two categories: hedgeable (gas, coal,
heating oil fuel costs, inflation, etc.) and "unhedgeable" (CTC timing,
standard offer, etc.)

  Hedgeable Component      Unhedgeable Component
Strategy: Manage within the respective commodity books   Capitalize on
portfolio diversification across the country
          Look for "macro" hedges and focus activities of EGA

Pricing:  You know best       Risk-based: higher premiums for greater
uncertainty

Policy:  Internal authorizations only on who, how and when to hedge Develop a
limit framework and propose a limit to the BOD

Exposure: Existing VaR model will suffice     Develop and implement stress
scenarios to quantify exposure

3. Other Considerations

? Curve management: clear responsibilities, periodic review and validation
? Interaction with the EAM world: EAM projects create long positions, pricing
bundled deals with an EAM component
? Flash-to-actual catch up: liquidations validate curve assumptions
? Attention to EES-Canada: currently executed a power deal and a few gas deals
? Process for pricing smaller mid-market deals: sacrificing quantity for
quality - force originators to develop standard deal structures

I could elaborate further on these points. Vlady.


W E D N E S D A Y   E V E N I N G   E X T R E M E   M A R K E T S
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Wednesday: The CRB Index has gained 0.11 points to 185.35. The
US Dollar Index edged higher by 0.40 points to 114.32.

The Dow Industrials moved lower 151.26 points, at 9232.97, while
the S&P 500 dropped 20.45 points, last seen at 1077.09. The
Nasdaq Composite fell 75.73 points to 1646.34.
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E X T R E M E   M A R K E T   C O M M E N T A R Y
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LIVESTOCK: December live cattle closed down $0.32 at $67.10

today. The weak U.S. stock market amid the growing anthrax scare
pressured futures today. News that an IBP packing plant in Lexington,
Nebraska, is closing due to present market conditions also pressured
the futures. Prices did open stronger, but could not hold their
gains.

December lean hogs closed up $0.15 today at $50.37. Short covering
from perceived oversold conditions gave a slight lift to futures
today, as did a more stable cash market today. Still, the bulls are
sickly in this market. Recent heavy hog runs have bulls worried about
burdensome near-term pork supplies.

GRAINS: December corn futures closed 1 cent higher at $2.07 3/4
today. The market was supported by firming

basis levels in the cash market and the rally in wheat. Prices scored
an "outside day" up on the daily bar chart today. If there is
follow-through buying interest on Thursday, a bullish key reversal
will be confirmed.

November soybeans closed 3 1/2 cents higher at $4.34 today. The rally
in wheat and rumored Chinese soybean demand supported beans today.
Prices scored an "outside day" up on the daily bar chart today. If
there is follow-through buying on Thursday, a bullish key reversal up
will be confirmed. Let's see what the weekly USDA export sales data
shows Thursday morning.

December Chicago SRW wheat closed up 7 cents at $2.84 3/4 today. It
was a big day for the bulls. Prices were boosted by more short
covering, as well as hopes for near-term fresh export demand. Prices
pushed to a fresh seven-week high today and closed near the session
high.

SOFTS: March N.Y. sugar closed 1 point higher at 6.63 cents today.
Prices today pushed to a fresh two-week high, but then backed off and
closed near the session low. The bulls have seen a nice mini run
since the lows scored a little over a week ago.

December N.Y. coffee closed 85 points higher at 44.75 cents today.
Prices gapped higher on the daily bar chart on some short covering
after prices set a contract low Tuesday. Bulls should not get too
excited about today's gap-higher trade. Let's see what price action
does Thursday and Friday. Nearby coffee futures prices this week set
a record low.

December N.Y. cocoa closed $27 higher today, at $1,066. Prices today
showed good follow-through buying strength

and a bullish key reversal up was confirmed on the daily

bar chart. Bulls are gaining momentum.

December cotton closed 6 points higher at 31.53 cents in quiet
trading today. I do look for some more short covering in the coming
sessions, but make no mistake: bears

are in command. For a longer-term perspective, nearby New York cotton
futures sunk to a low of 29.50 cents in 1986.

November orange juice on Tuesday afternoon closed at 86.10. That's
off 1.30 cents from the Monday evening close. Prices are due for some
corrective consolidation after the recent big gains. Last week's USDA
Florida orange figure was termed bullish.

METALS: December COMEX gold futures closed up $1.10 today at $284.00
an ounce. It was another quiet day today. Bulls are trying to
stabilize the market after last week's sell off. Bulls need to show
more strength this week as bears have gained momentum.

December silver futures closed $0.015 higher at $4.37 an ounce today.
Prices hit a fresh four-week low Tuesday as bears still have the
near-term edge. Silver has also suffered technical damage recently.

December N.Y. copper closed 50 points lower at 63.90 cents. Prices
today did not show the follow-through buying to confirm a key
reversal up. Prices need to push above 66 cents and see a couple
closes above that level before the bulls get much confidence.

ENERGIES: December crude closed off $0.16 at $22.10 today. Prices
dropped to a fresh four-week low today. Bears are gaining momentum. A
big bear flag continues to form on the daily chart. If there is a
downside breakout from this big bear flag, the measuring implications
point to possible losses to well below $20.00 per barrel.

December heating oil closed off 53 points, at .6290 today. Prices hit
another fresh four-week low today. Bears remain in control as it
looks like a big bear flag is forming on the daily bar chart.
Measuring implications from this potential bear flag point to much
larger losses.

December unleaded gasoline closed 99 points lower at .5863 today.
Prices scored a fresh yearly low today, as bears gain even more
momentum. Expect more volatility in the coming weeks.

December natural gas closed $0.0149 lower at $2.703 today. Prices
pushed to another fresh five-week high today but then closed near the
session low. Bulls have gained just a bit of momentum, but bears have
the overall advantage.

STOCKS, FINANCIALS, CURRENCIES: The December Euro currency closed 47
points lower today at .9010. Today's close was the lowest closing
price in over a month. Bears are

gaining confidence. Prices are presently trading below a
five-week-old downtrend line drawn off the September and October
highs.

The December Japanese yen closed up 6 points at .8283 today. Prices
pushed to a fresh two-month low just Tuesday. Bears have control of
the yen. A steep four- week-old downtrend line is in place on the
daily bar chart.

The December Swiss franc closed 19 points lower at .6101 today. While
a steep four-week-old downtrend line is in place on the daily bar
chart, a longer-term 3.5-month-old uptrend line on the daily bar
chart remains intact.

The December Canadian dollar closed 25 points lower at .6363 today.
Prices again closed near the session low. Bulls need to step up the
rest of this week or they will lose the slight momentum they have
recently gained. Prices are still in a three-month-old downtrend on
the daily bar chart.

The December British pound closed 6 points lower at 1.4424. It was
another quiet day today. Bears have the slight edge. Technical damage
has been inflicted recently.

First support is seen at the 1.4344 level. First resistance is now
seen at 1.4500.

The September U.S. dollar index closed 56 points higher at 114.78
today. Bulls have made progress recently, but need

to keep the pressure on the bears. It appears a head-and- shoulders
bottom reversal pattern has formed on the daily bar chart.

December U.S. T-bonds closed 17/32 higher at 106 23/32. Bulls are
having a very good week, so far, and they needed it. Bulls can
correctly argue this market was due for some corrective
consolidation. The charts are still favoring the bulls.

December S&P 500 futures closed off 23.50 at 1076.00. Today, prices
scored a bearish "outside day" down on the daily bar chart, and if
there is follow-through selling on Thursday, a bearish key reversal
down will be confirmed. Still, not much technical damage occurred
today. Let's see what happens Thursday and Friday. This index has
shown resilience, despite the gloomy U.S. economic conditions and
terrorist threats. The growing anthrax

scare did spook traders today.

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I N O   N E W S
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E X T R E M E   F U T U R E S
____________________________________________________________________________

Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/futures/

WINNERS

LBN2   Random Length Lumber Jul 2002              265.00      8.90  +3.42
ERY0   FTSE Eurotop 100 Cash                      2732.4      67.3  +2.53
WZ1    Wheat Dec 2001                            284 3/4         7  +2.52
CCZ1   Cocoa Dec 2001                               1066        26  +2.50
XWZ1   Wheat Dec 2001                            284 3/4     6 3/4  +2.43
KWZ1   Wheat Dec 2001                                295         7  +2.43
XRZ1   Soybean Oil Dec 2001                        15.24      0.36  +2.41
BOF2   Soybean Oil Jan 2002                        15.45      0.36  +2.39
HGN2   Copper Jul 2002                            0.6570    0.0130  +1.97
MWZ1   Hard Red Spring Wheat Dec 2001            313 1/2         6  +1.95

LOSERS

NDZ1   NASDAQ 100 Index Dec 2001                 1310.00   -103.50  -7.33
NGX1   Henry Hub Natural Gas Nov 2001              2.418    -0.172  -6.64
MDZ1   S&P Midcap 400 Dec 2001                    445.50    -14.35  -3.12
RLZ1   Russell 2000 Index Dec 2001                422.50    -13.50  -3.10
RZ1    Russell 1000 Index Dec 2001                565.50    -13.00  -2.25
XOZ1   Oats Dec 2001                                 188    -4 1/4  -2.23
VGY    Value Line Index - Cash Geometric Feb 20    328.56     -7.33  -2.18
MVZ1   Value Line Index. Mini Dec 2001           1080.00    -24.00  -2.17
RRU2   Rough Rice Sep 2002                         5.000    -0.110  -2.15
SPZ1   S&P 500 Dec 2001                          1076.50    -23.00  -2.09
____________________________________________________________________________

E X T R E M E   S T O C K S
____________________________________________________________________________

Updated every 10 minutes around the clock.
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WINNERS

FILE   FILENET CORP                              13.3700    3.4400  +34.23
ACAM   ACAMBIS PLC ADS                           36.3500    8.4900  +29.27
SURE   SUREBEAM CORP'A'                          11.2500    2.5210  +28.62
PRTH   PARTHUS TECH PLC                           5.9000    1.0889  +22.64
DTHK   DIGITALTHINK INC                           9.0000    1.7000  +21.88
INFS   INFOCUS CORP                              17.1600    3.0700  +21.41
CTAC   1-800 CONTACTS                            15.6100    2.7000  +20.77
SCMM   SCM MICROSYSTEMS                           7.2100    1.0300  +16.30
ALCD   ALCIDE CORP                               23.7500    3.1490  +14.92
MICC   MILLICOM INTL CELLULAR SA                 11.5000    1.4200  +14.06

LOSERS

TESTC  TEST SECURITY                             36.0000  -15.2560  -29.70
PXLW   PIXELWORKS INC                            10.2000   -3.9900  -28.24
RFMD   RF MICRO DEVICES                          18.4900   -5.9100  -24.20
DCN    DANA CORP                                   11.30     -3.26  -22.39
RMBS   RAMBUS INC                                 9.1000   -2.6100  -22.27
UAL-B  UAL CORP 12.25% DEP'B'PFD                   18.85     -4.46  -19.87
SEBL   SIEBEL SYSTEMS                            17.3800   -4.1500  -19.27
UAL-T  UAL CP CAP TR I 13.25%'TOPRS'               20.40     -4.80  -19.05
PSFT   PEOPLESOFT INC                            23.1900   -5.2900  -18.54
CSCC   CENTERSPAN COMMUNICATIONS CORP             7.2500   -1.6450  -18.30

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looks like that's the price in the deal....am i missing it?

Kerri Thompson@ENRON
02/06/2001 01:57 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: natsource checkout

515365

broker has 54.05

thanks


Greg

Have a great time with the $100 Million Club

Lavo and Dave
---------------------- Forwarded by John J Lavorato/Corp/Enron on 12/02/2000
09:40 AM ---------------------------

Rosalee Fleming on 12/01/2000 02:56:08 PM
To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cliff
Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Jeremy Blachman/HOU/EES@EES, Philippe A Bibi/HOU/ECT@ECT, Raymond
Bowen/HOU/ECT@ECT, Michael R Brown/LON/ECT@ECT, Harold G
Buchanan/HOU/EES@EES, Rick Buy/HOU/ECT@ECT, Richard Causey/Corp/Enron@ENRON,
Diomedes Christodoulou/SA/Enron@Enron, Wade
Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David Cox/Enron
Communications@Enron Communications, David W Delainey/HOU/ECT@ECT, James
Derrick/Corp/Enron@ENRON, Steve Elliott/Enron Communications@Enron
Communications, Jim Fallon/Enron Communications@Enron Communications, Andrew
S Fastow/HOU/ECT@ECT, Mark Frevert/NA/Enron@Enron, Ben F Glisan/HOU/ECT@ECT,
Kevin Hannon/Enron Communications@Enron Communications, David
Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rod Hayslett/FGT/Enron@ENRON,
Stanley Horton/Corp/Enron@Enron, James A
Hughes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Larry L
Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean/NA/Enron@Enron,
Louise Kitchen/HOU/ECT@ECT, Mark Koenig/Corp/Enron@ENRON, Kenneth
Lay/Corp/Enron@ENRON, John J Lavorato/Corp/Enron@Enron, Dan Leff/HOU/EES@EES,
Danny McCarty/ET&S/Enron@Enron, Mike McConnell/HOU/ECT@ECT, Rebecca
McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon/HOU/ECT@ECT,
Mark Metts/NA/Enron@Enron, Mark S Muller/HOU/EES@EES, Cindy
Olson/Corp/Enron@ENRON, Lou L Pai/HOU/EES@EES, Ken Rice/Enron
Communications@Enron Communications, Matthew Scrimshaw/LON/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT, Jeffrey Sherrick/Corp/Enron@ENRON, John
Sherriff/LON/ECT@ECT, Jeff Skilling/Corp/Enron@ENRON, Marty
Sunde/HOU/EES@EES, Greg Whalley/HOU/ECT@ECT, Thomas E White/HOU/EES@EES, G G
Garcia/NA/Enron@Enron, Marcia Manarin/SA/Enron@Enron, Susan
Skarness/HOU/ECT@ECT, Stacy Guidroz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Beena Pradhan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Karen K
Heathman/HOU/ECT@ECT, Sharron Westbrook/Corp/Enron@ENRON, Kay
Chapman/HOU/ECT@ECT, Molly Bobrow/NA/Enron@Enron, Rosane
Fabozzi/SA/Enron@Enron, Stephanie Harris/Corp/Enron@ENRON, Bridget
Maronge/HOU/ECT@ECT, Nicki Daw/NA/Enron@Enron, Inez Dauterive/HOU/ECT@ECT,
Carol Ann Brown/Enron Communications@Enron Communications, Elaine
Rodriguez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cindy Stark/Corp/Enron@ENRON,
Mary E Garza/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maureen
McVicker/NA/Enron@Enron, Joannie Williamson/Corp/Enron@ENRON, Vanessa
Groscrand/Corp/Enron@ENRON, Suzanne Danz/Corp/Enron@ENRON, Tori L
Wells/HOU/ECT@ECT, Cathy Phillips/HOU/ECT@ECT, Loretta
Brelsford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sue Ford/HOU/ECT@ECT, Dolores
Fisher/NA/Enron@Enron, Kathy McMahon/Enron Communications@Enron
Communications, Karen Owens/HOU/EES@EES, Dorothy Dalton/Enron
Communications@Enron Communications, Mercedes Estrada/Enron
Communications@Enron Communications, Christina Grow/Corp/Enron@ENRON, Lauren
Urquhart/LON/ECT@ECT, Sherri Sera/Corp/Enron@ENRON, Katherine
Brown/Corp/Enron@ENRON, Liz M Taylor/HOU/ECT@ECT, Judy G Smith/HOU/EES@EES,
Peggy McCurley/HOU/ECT@ECT, Marsha Schiller/HOU/ECT@ECT, Fiona
Stewart/LON/ECT@ECT, Jana L Paxton/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Connie Blackwood/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Tammie
Schoppe/HOU/ECT@ECT, Kimberly Hillis/HOU/ECT@ect, Jennifer Burns/HOU/ECT@ECT,
Sharon Dick/HOU/EES@EES, Beverly Aden/HOU/EES@EES, Kathy Dodgen/HOU/EES@EES,
Kerry Ferrari/LON/ECT@ECT, Carol Moffett/HOU/EES@EES, Jennifer Adams/Enron
Communications@Enron Communications, Leah Rijo/Enron Communications@Enron
Communications, Lucy Marshall/Enron Communications@Enron Communications,
Kathy Campos/GPGFIN/Enron@ENRON, Julie Armstrong/Corp/Enron@ENRON, Kathryn
Greer/HOU/EES@EES, Mrudula Gadade/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brenda
Castillo/NA/Enron@Enron
cc:

Subject: The Enron Corporate Policy Committee Retreat

Ken and Jeff have decided that the Enron Executive Committee Retreat will
include only the Corporate Policy Committee this year.  (See list of members
below.)  You may be holding the timeframe of January 16-18, 2001 on your
calendar, which you can now free up if you are not on the committee.

The location of the retreat is under consideration.  When a decision is made,
we will get the information to the members of the Corporate Policy
Committee.  Departure for the retreat will be early afternoon on Tuesday,
January 16 with return to Houston late afternoon on Thursday, January 18.

Please don't hesitate to call me if you have any questions at 713-853-6088.

Rosie

Enron Policy Committee

Baxter, Cliff
Causey, Rick
Derrick, Jim
Fastow, Andy
Frevert, Mark
Hannon, Kevin
Horton, Stan
Kean, Steve
Lay, Ken
Pai, Lou
Rice, Ken
Skilling, Jeff
Whalley, Greg