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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

India: FIs, banks favour AES taking over Dabhol

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

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

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

India: MSEB asked to prove confidentiality of Enron papers

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

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

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

India: New power Bill set to free captive generation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Of SMARTMONEY.COM

AS THE DOORS closed on the second quarter, investors found themselves in
nearly the same situation as in the first three months of the year. The U.S.
economy is barely growing, and corporate profits remain in recession. Lower
interest rates and tax rebates will inevitably bring relief sooner or later,
but the emphasis is now on later.
Yet many of our pundits insist they see sunshine poking through the clouds.
They'll be the first to acknowledge that the implosion in corporate profits
has been painful, but they're quick to add that the equity market tends to
lead the business cycle recovery by three to six months. Investors who get in
now - though they're assuming substantial risk - stand to reap the greatest
rewards if the economy recovers any time in the second half of this year,
they promise.
"If the U.S. is in recession now, and if the market turns up five months
before the recession ends (which has been the average), then the stock market
is OK if the recession ends by October," says ISI Group chief economist Ed
Hyman, typically one of our most bearish pundits. Adds the generally upbeat
Thomas Galvin, chief investment strategist at Credit Suisse First Boston:
"Once the [economic] data points change, which I think they're in the process
of doing, everyone and their mother will be back in the market."
Of course, there's no denying that conditions worsened in the second quarter
and remain inordinately weak. The deterioration in corporate profitability
and capital spending, as well as slowing consumer spending and sluggish
growth abroad, continue to make the threat of recession a real concern. As
UBS Warburg's Ed Kerschner, our No. 2- ranked pundit, puts it: "No doubt
about it - it's nasty out there."
Our pundits have adjusted their profit estimates to reflect this reality.
Kerschner now expects second-quarter S&P 500 operating earnings to fall at
least 14.4% below year-ago levels. "[T]his looks like the worst quarter of
the profit cycle," he says. And the next two quarters might not be that much
better, according to Ed Yardeni. On June 25, the chief investment strategist
at Deutsche Banc. Alex Brown lowered his full-year S&P 500 profit estimate to
$47 - reflecting a 14% year-over-year decline. Kerschner is the first Wall
Street strategist to project earnings below $50 a share. Given the dreary
near-term outlook, it's hard to blame investors for their wariness. Goldman
Sachs guru Abby Joseph Cohen, for one, recognizes that investors who are
often eager to pay up for potentially good news when the market is rising
become reluctant to assume the same risk in periods of uncertainty. Galvin is
equally understanding: "Investors are not bankrupt, but sentiment is clearly
broke," he says. "Today the average money-market fund rarely yields 4%, yet
most investors are happy to sit on cash." Indeed, investors currently hold
$2.1 trillion in money-market funds - the highest level ever as a percentage
of the market value of the Wilshire 5000 - and savings-account deposits are
up 14% from last year, Galvin says. But if our pundits sympathize with
investors' blas, attitude about stocks, they're definitely out to change it.
Those who wait too long to get back into the market stand to lose out on
potential profits in the end, they explain. "Many investors would prefer to
wait until favorable price momentum returns to stocks," says Cohen in
reiterating her belief that share prices and price-to-earnings multiples for
many companies have already fallen to attractive levels relative to growth
expectations. "We would rather make an early call, allowing our investing
clients an opportunity to structure portfolios accordingly."
Elaine Garzarelli, the chairwoman of Garzarelli Capital, agrees: "Eventually
there will come a point when analysts revise down their estimates too much
and then must rush to revise up when the economy snaps back...Because of
this, we believe this is a good time to invest before upward revisions
begin."
Lehman Brothers' Jeffrey Applegate is of similar mind. In his opinion, the
broad market is actually 15% undervalued at current levels, despite being up
12% since its last trough on April 4. Historically, equity returns have
averaged 17% in the 12 months from this level of undervaluation, he says.
Because cyclical stocks - such as retailers, financials and technology - tend
to perform best in the early stages of a market recovery, the strategist last
week boosted the economic sensitivity of his U.S. equity portfolio.
Specifically, he increased his position in Internet-infrastructure software
maker BEA Systems (BEAS) and storage king EMC (EMC), bringing his overall
technology weighting to 24%. In the consumer-cyclical sector, Applegate
snatched up more shares of homebuilder D.R. Horton (DHI), jewelry juggernaut
Tiffany (TIF) and Viad (VVI), a provider of products and services in money
orders and payment processing. And in the financial industry (which accounts
for a whopping 29% of his portfolio), Applegate replaced leasing- and
financial-services provider GATX (GMT) with the more interest-rate receptive
consumer-finance firm Household International (HI). To pay for his purchases,
Applegate sold off a few defensive names - including AES (AES), Enron (ENE),
Calpine (CPN) and Dynegy (DYN) - in energy and utilities. Knowing which
companies to avoid in this nasty environment is also part of the game, says
Kerschner, who screened out 37 companies that have the "dubious distinction"
of having failed to meet Wall Street consensus estimates at least three times
over the past five quarters. These companies, explains the strategist, "did
not successfully play the time-honored game of assiduously guiding down
analysts' estimates during the quarter and then triumphantly meeting or
beating the final figure." Among the tainted 37 are US Airways Group (U),
Bank One (ONE), Computer Sciences (CSC), American Home Products (AHP),
Charles Schwab (SCH), Halliburton (HAL), Harrah's Entertainment (HET),
McDonald's (MCD), Novell (NOVL) and Newmont Mining (NEM).
As the second quarter ushers in the third, it's important to remember that
things could indeed still get worse before they get better. But take note:
It's during times like these that the early bird catches the worm.
For more information and analysis of companies and mutual funds, visit
SmartMoney.com at http://www.smartmoney.com
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

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

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

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

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

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

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

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

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

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

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

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

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


Hi Everyone !

Please note a name change correction.

CP# 47358 from Western Area Power Administration - Phoenix Area Office to
Western Area Power Administration - Desert Southwest Region.

Previous setup of CP# 95964, Western Area Power Administration - Desert SW
Region has been suspended.

Bernice
x37972

---------------------- Forwarded by Bernice Rodriguez/HOU/ECT on 04/20/2001
09:28 AM ---------------------------

Bernice Rodriguez
04/13/2001 10:52 AM
To: Walter Guidroz/ENRON@enronXgate @ ENRON
cc: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Brant
Reves/ENRON@enronXgate@ENRON, Debbie R Brackett/HOU/ECT@ECT, David
Hardy/LON/ECT@ECT, Lesli Campbell/ENRON@enronXgate@ENRON, Cynthia
Clark/ENRON@enronXgate@ENRON, Enron Europe Global CounterParty/LON/ECT@ECT,
Stephanie Sever/HOU/ECT@ECT, Tom Moran/ENRON@enronXgate@ENRON, Claudia
Clark/HOU/ECT@ECT, William S Bradford/ENRON@enronXgate@ENRON, Lisa
Lees/HOU/ECT@ECT, Juana Fayett/Corp/Enron@Enron, Jana Morse/Corp/Enron@Enron,
Trang Le/HOU/ECT@ECT, Paul Maley/LON/ECT@ECT, Sonya Clarke/LON/ECT@ECT, Tim
Davies/LON/ECT@ECT, Karen O'Day/NA/Enron@Enron, Tanya
Rohauer/ENRON@enronXgate@ENRON, Kelly Lombardi/NA/Enron@Enron, Brian
Lindsay/Enron Communications@Enron Communications@ENRON, EOL Call Center,
Bill D Hare/HOU/ECT@ect, Amy Heffernan/Enron Communications@Enron
Communications@ENRON, Molly LaFuze/Enron Communications@Enron
Communications@ENRON, Danny Clark/Enron Communications@Enron
Communications@ENRON, Stephanie Panus/NA/Enron@Enron,
Mandola@/O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=BCBC586C-1D5A658C-862568C
D-532EF3@EX@enronXgate@ENRON,
Kyle@/O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=97746094-1B0A69C0-86256945-5
803A9@EX@enronXgate@ENRON
Subject: Re: EOL approvals, 04-12-01 _ GCP Response

Any GCP adjustments are highlighted in blue.

Have a Happy Easter !!!!

Bernice
x37972

From: Walter Guidroz/ENRON@enronXgate on 04/12/2001 05:21 PM
To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Brant Reves/ENRON@enronXgate,
Debbie R Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli
Campbell/ENRON@enronXgate, Cynthia Clark/ENRON@enronXgate, Enron Europe
Global CounterParty/LON/ECT@ECT, Stephanie Sever/HOU/ECT@ECT, Tom
Moran/ENRON@enronXgate, Claudia Clark/HOU/ECT@ECT, William S
Bradford/ENRON@enronXgate, Lisa Lees/HOU/ECT@ECT, Juana
Fayett/Corp/Enron@Enron, Jana Morse/Corp/Enron@Enron, Trang Le/HOU/ECT@ECT,
Paul Maley/LON/ECT@ECT, Sonya Clarke/LON/ECT@ECT, Tim Davies/LON/ECT@ECT,
Karen O'Day/NA/Enron@Enron, Tanya Rohauer/ENRON@enronXgate, Kelly
Lombardi/NA/Enron@Enron, Brian Lindsay/Enron Communications@Enron
Communications, EOL Call Center@ECT, Bernice Rodriguez/HOU/ECT@ECT, Bill D
Hare/HOU/ECT@ect, Amy Heffernan/Enron Communications@Enron Communications,
Molly LaFuze/Enron Communications@Enron Communications, Danny Clark/Enron
Communications@Enron Communications, Stephanie Panus/NA/Enron@Enron,
Mandola@/O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=BCBC586C-1D5A658C-862568C
D-532EF3@EX@enronXgate,
Kyle@/O=ENRON/OU=NA/CN=RECIPIENTS/CN=NOTESADDR/CN=97746094-1B0A69C0-86256945-5
803A9@EX@enronXgate
cc:
Subject: EOL approvals, 04-12-01

Please see attached.


----- Forwarded by Jeff Dasovich/NA/Enron on 05/15/2001 07:19 PM -----

	Scott Govenar <sgovenar@govadv.com>
	05/15/2001 05:59 PM

		 To: Hedy Govenar <hgovenar@govadv.com>, Mike Day <MDay@GMSSR.com>, Bev
Hansen <bhansen@lhom.com>, Jeff Dasovich <jdasovic@enron.com>, Susan J Mara
<smara@enron.com>, Paul Kaufman <paul.kaufman@enron.com>, Michael McDonald
<Michael.McDonald@enron.com>, Sandra McCubbin <Sandra.McCubbin@enron.com>,
Rick Shapiro <rshapiro@enron.com>, Jim Steffes <james.d.steffes@enron.com>,
Alan Comnes <acomnes@enron.com>, Steven Kean <Steven.J.Kean@enron.com>, Karen
Denne <kdenne@enron.com>, "Harry.Kingerski@enron.com"
<Harry.Kingerski@enron.com>, Mike D Smith <msmith1@enron.com>, Leslie Lawner
<Leslie.Lawner@enron.com>, Robert Frank <rfrank@enron.com>, Ken Smith
<ken@kdscommunications.com>, Janel Guerrero <Janel.Guerrero@enron.com>,
Miyung Buster <Miyung.Buster@enron.com>, Jennifer Thome
<Jennifer.Thome@enron.com>, Eric Letke <eletke@enron.com>, Mary Schoen
<Mary.Schoen@enron.com>, David Leboe <David.Leboe@ENRON.com>
		 cc:
		 Subject: Ferc/Republicans

Attached, please find the following press releases from Governor Davis:

1) Governor Davis wrote a letter to FERC regarding the QFs.

http://www.governor.ca.gov/state/govsite/gov_htmldisplay.jsp?BV_SessionID=@@@@
0148135597.0989967115@@@@&BV_EngineID=galkllhdjdebemfcfkmchcng.0&sCatTitle=Pre
ss+Release&sFilePath=/govsite/press_release/2001_05/20010515_PR01215_GGD_lette
r_to_FERC.html&sTitle=GOVERNOR+DAVIS+SENDS+LETTER+TO+FERC+5%2f15%2f01&iOID=147
70

2) Governor Davis blames Republicans for Moodys downgrade.

http://www.governor.ca.gov/state/govsite/gov_htmldisplay.jsp?BV_SessionID=@@@@
0148135597.0989967115@@@@&BV_EngineID=galkllhdjdebemfcfkmchcng.0&sCatTitle=Pre
ss+Release&sFilePath=/govsite/press_release/2001_05/20010515_PR01219_Moodys_cr
edit_rating.html&sTitle=GOP+OBSTRUCTION+LEADS+TO+CALIFORNIA+%0aCREDIT+DOWNGRAD
E%0a&iOID=14750


Mark Taylor has asked me to forward the attached email to each of you.  Per
Mark's direction and the email, we need to sign off, from a Legal (not
business) perspective only, on the attached descriptions of the 12 product
areas to be traded online.  So far we have only received 5 of the referenced
12 descriptions.  I will forward the additional descriptions to the relevant
Legal group when I receive them.  Per the attached email, Awais needs our
Legal sign off by Friday.

I understand Alan may be out for the rest of the week so the attached
descriptions on Coal, SO2 and NOX will need to be approved by someone else in
his group.  I'm not sure who that would be.  Could you let me know?  Mark
asked if Shari and Sara could sign off on the weather and pulp & paper
description for our group.

Thanks for your help!
---------------------- Forwarded by Tana Jones/HOU/ECT on 09/01/99 04:52 PM
---------------------------

Awais Omar
09/01/99 02:30 AM
To: Tana Jones/HOU/ECT@ECT
cc:
Subject: EnronOnline Market Descriptions

Tana,

I am afraid there is more than one description.  Some are quite lengthy,  US
West Power (11 Pages) and US Natural Gas (5 pages).  There is a quite urgent
deadline to get these uploaded into the web pages and then integrated into
the site by the end of this week.  So any comments you can provide ASAP would
be much appreciated.

If you have any questions please do not hesitate to phone, or email me.  Tel
no: 44 171 970 7377.

Thanks

Awais

---------------------- Forwarded by Awais Omar/LON/ECT on 01/09/99 08:25
---------------------------

Awais Omar
31/08/99 20:21
To: Steven J Kean/HOU/EES@EES, Carol St Clair/HOU/ECT@ECT
cc: Richard Shapiro/HOU/EES@EES, Shelley Corman/ET&S/Enron@Enron, Michael
Moran@ENRON, John Palmisano/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Louise
Kitchen/LON/ECT@ECT, Marcello Romano/LON/ECT@ECT
Subject: EnronOnline Market Descriptions

Steven & Carol,

I am working for Louise Kitchen on the EnronOnline project.  As part of the
site we are incorporating market descriptions of all the main market that we
will be trading on the system to give users some general information.

I have collected and rewritten these into a standard format and am currently
in the process of obtaining Legal and regulatory approval of these
descriptions that will be visible to anyone on the web.

In Total there are 12 descriptions covering North Amercia.  These are listed
below.

Canada Gas
LPG
NOx Emissions
Oil & Oil products
Plastics and Petrochemicals
Pulp & Paper
SO2 Emissions
US Coal
US Natural Gas
US East Power
US West Power
Weather Derivatives

I have below the completed descriptions to date.  Please could you pass to
the respective people in your groups for their review and comments.  I would
appreciate it if you could provide your comments as soonas possible as these
have to be approved and loaded into the web site this week.

Below are 5 of the descriptions.  I shall send the remainder to yourselves
tomorrow.

If you have any questions my telephone number in London is  44 171 970 7377.

Thanks

Awais


----- Original Message -----
From: "cmarsters" <wxranch@airmail.net>
To: "BUD ROBINSON" <bud@pflash.com>; "Danny JR Richardson"
<danny@pflash.com>; "Frank H. Marsters, 111" <marstersco@earthlink.net>;
"Deniese Day" <deniesed@hotmail.com>; "Richard & Marty Darr"
<rdarr@flash.net>; "Billy Bass Daniel" <bdaniel@pflash.Com>; "Bren & John
Carr" <brencarr@airmail.net>; "John E. Bennett" <bennettcpa@glade.net>;
"Larry W. Bass" <lwbthemarine@bigplanet.com>; "Dell T Balch"
<dellbalch@hotmail.com>
Sent: Friday, December 08, 2000 5:08 AM
Subject: Fw: Word Merchants at their best...

>
> ----- Original Message -----
> From: "Michael D Ferguson" <mfe252@airmail.net>
> Sent: Tuesday, December 05, 2000 9:26 AM
> Subject: Word Merchants at their best...
>
>
> >
> >  Tipper Gore, an amateur genealogical researcher, discovered
> >  that her husband's great-great uncle, Gunther Gore, a fellow
> >  lacking in character, was hanged for horse stealing and train
> >  robbery in Tennessee in 1889.
> >
> >  The only known photograph of Gunther shows him standing
> >  on the gallows. On the back of the picture is this inscription:
> >  "Gunther Gore; horse thief, sent to Tennessee Prison 1885,
> >  escaped 1887, robbed the Tennessee Flyer six times. Caught
> >  by Pinkerton detectives, convicted and hanged in 1889."
> >
> >  After letting Al Gore and his staff of professional image
> >  consultants peruse the findings, they decided to crop Gunther's
> >  picture, scan it in as an enlarged image, and edited it with
> >  image processing software so that all that's seen is a head shot.
> >
> >  The accompanying biographical sketch was sent to the
> >  Associated Press as follows:
> >
> >  "Gunther Gore was a famous
> >  rancher in early Tennessee history. His business empire
> >  grew to include acquisition of valuable equestrian assets
> >  and intimate dealings with the Tennessee railroad.
> >  Beginning in 1883, he devoted several years of his life to
> >  service at a government facility, finally taking leave to resume
> >  his dealings with the railroad. In 1887, he was a key player in
> >  a vital investigation run by the renowned Pinkerton Detective
> >  Agency. In 1889, Gunther passed away during an important
> >  civic function held in his honor when the platform upon which
> >  he was standing, collapsed."
> >
> >
> >
> >
>


SK - I've taken care of booking him a conf room/office on 47.  mm

As an organisational announcement is imminent, and it is no secret, that I
will be assuming responsibility for Asia (including Japan), Africa, and
Australia, I am planning to fly to Houston on Sunday, 13 Feb., and would like
to meet each of you, either because you will become a direct report, or a new
customer.  I will have my assistant, Sharon, coordinate times.  I will look
forward to the prospect of meeting each of you.  Should your schedule not
allow a meeting this time, I will be back in Houston on Monday 13 March.  If
you know of anyone else I should meet, but have inadvertently omitted from
this list, please feel free to advise Sharon, as well.   thanks  mcs

Sharon - for many of these people I can go their offices, but see if Maureen
can find a space I can land for meetings, as some will not have offices.


Chris--The attached file contains updated February Volume Reqs. for CES.
Changes from the file that I sent you onTuesday are highlighted in red.  All
other values are unchanged.

Doug Kinney
Ph:  703-561-6339
Fax:  703-561-7317

 - Feb'00 CES 01_27_00updat.xls


We are continuing work to ensure our new online trading system, UBSWenergy, is ready for launch on the week of Feb. 11, which is the week following the anticipated Enron/UBS Closing Date of Friday, Feb. 8.

To assist in this process, we are planning an online trading simulation for Thursday, February 7 from  0900 to 1100 (CST). It is planned to include all  traders, originators, mid/back-office staff and IT teams who would normally be involved with electronic trading.

Purpose of the simulation - The simulation will test our "live" trading environment (restricted to internal access only) and will:

Test the integrity and functionality of the system and related processes (including credit, risk, legal, operations, etc.)
Provide an opportunity for traders to verify their products and product setup
Demonstrate how the trading system and processes work to UBS staff visiting next week

Nature of the simulation - The simulation will include testing of all processes related to trading and mid/back-office functions:

Credit, Legal, Risk, Operations, and other groups:
Profile tests for "external" customers (role-played by Originators)
Profile tests for internal users (traders, back-office, etc.)
Data and Process checking as completed transactions flow through Mid/back-Office systems

Traders and Originators:
Traders will be managing their individual books and associated products. Although we may be restricted to certain financial products on launch day, both physical and financial will be available during the simulation. Each trader will be asked to manage their individual position and profitability goals for the simulation.
Originators and others will be asked to play the roles of counterparties. Credit limits, etc. will be tested during the simulation.

Information Technology:
Will assist in preparing data on the system for the simulation.
After the simulation is over, will work with the relevant groups to test the trade-data in various systems and risk books
Will ensure all simulation data is removed from the system after the simulation is complete.

Next steps

Traders and Originators will be contacted prior to simulation day to ensure they have appropriate access to the system.
Originators will be assigned specific roles. You should expect to receive an email and/or handout on or before Wednesday, Feb. 6.
UBSWenergy personnel will be meeting with back office personnel over the next several days to ensure everything is in place for the simulation.

Summary

This simulation is an important step towards re-launching our trading business. We appreciate the participation of everyone involved as we prepare for the public launch of UBS Warburg Energy and the UBSWenergy trading platform.

If you have any questions, comments, suggestions, or ideas regarding this simulation, please feel free to contact Bob Shults (30397) or myself (31861).

Regards,
Dave Forster
713.853.1861
E-Mail:	David.Forster@enron.com


Are you on this distribution?  If not, please get on it.
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 01/19/2001
08:50 AM ---------------------------

	From:  Amanda Huble @ ENRON                           01/19/2001 07:57 AM

To: Fletcher J Sturm/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Richard
Tomaski/Corp/Enron@Enron, Laura Luce/Corp/Enron@Enron, Julie A
Gomez/HOU/ECT@ECT, Frank W Vickers/NA/Enron@Enron, Jonathan
McKay/CAL/ECT@ECT, Tim Heizenrader/PDX/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT
cc:
Subject: Fundamental Newsletters


Janine -

I have speaking with the FX desk about the status o the roll-out of the
Currency Exchange products on EnronOnline, and apparently they are a little
frustrated; they continue to reiterate that what they are trying to
accomplish Online is the same kind of transactions that they currently do
over the phone.

That being the case, I asked for an example of a Confirmation of such a
transaction. Attached please find a confirmation between RMT and ETRIC dated
July 10, 2000. Laurel Adams of the FX documentation unit explains that Trena
McFarland, a trader in the UK, regularly does non-proprietary FX transactions
on the behalf of RMT. Laurel has been assured that this is appropriate, but
we a re unable to locate any clear 'policy' or 'instruction' in this regard.

So, we either have a situation where this issue is being handled
inappropriately on the FX desk and needs to be corrected for their OTC
transactions as well as EOL, or there's some loophole or other piece of
information that is missing from the equation we are trying to solve for.

I think it goes without saying that, whatever the case, we at EOL will follow
the lead given by our Tax and Legal Departments - and I would hope that we
will find a quick, AND FINAL, resolution.

Dale

---------------------- Forwarded by Dale Neuner/HOU/ECT on 10/25/2000 06:39
AM ---------------------------

Laurel Adams
10/24/2000 05:58 PM
To: Dale Neuner/HOU/ECT@ECT
cc:
Subject: Re: How about that Oslo Confirm?

My short term memory is shot....


Gerald,

Additional suggestions from one of my colleagues, Natalie Futch. (I asked her
for a blunt assessment. She complied.) Her version is better than mine.

Bill

Katz, Kutter Haigler, Alderman, Bryant & Yon et al
106 East College Avenue, Suite 1200
Tallahassee, FL  32301
(850) 224-9634
www.katzlaw.com
_______________________________________

This transmission is intended to be delivered only to the named addressee(s)
and may contain information that is confidential, proprietary, attorney
work-product or attorney-client privileged.  If this information is received
by anyone other than the named addressee(s), the recipient should immediately
notify the sender by E-MAIL and by telephone (850) 224-9634 and obtain
instructions as to the disposal of the transmitted material.  In no event
shall this material be read, used, copied, reproduced, stored or retained by
anyone other than the named addressee(s), except with the express consent of
the sender or the named addressee(s).  Thank you.

Date: Wed, 04 Apr 2001 15:04:57 -0400
From: "Natalie FUTCH" <natalief@katzlaw.com>
To: "Bill L. Bryant" <BILL@katzlaw.com>
Subject: Re: Fwd: Response to AEC letter
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_633898B2.C4A5CC38"

Bill -

Chris Hilger's letter appears confrontational and inflammatory. I'm sure that
the letter to which he is responding is similarly belligerent. However, if
Enron's goal is to avoid litigation and expense in this matter, this letter
does not work toward that goal.

Unless there is some strategic reason to respond with specific dates and
conversations, I think the only necessary sentences in paragraph one are one
and three. Only the first sentence, as amended, is necessary in paragraph
two. See my proposed revisions attached.

Natalie

>>> Bill L. Bryant 04/04/01 11:58AM >>>
here you go...

Katz, Kutter Haigler, Alderman, Bryant & Yon et al
106 East College Avenue, Suite 1200
Tallahassee, FL  32301
(850) 224-9634
www.katzlaw.com
_______________________________________

This transmission is intended to be delivered only to the named addressee(s)
and may contain information that is confidential, proprietary, attorney
work-product or attorney-client privileged.  If this information is received
by anyone other than the named addressee(s), the recipient should immediately
notify the sender by E-MAIL and by telephone (850) 224-9634 and obtain
instructions as to the disposal of the transmitted material.  In no event
shall this material be read, used, copied, reproduced, stored or retained by
anyone other than the named addressee(s), except with the express consent of
the sender or the named addressee(s).  Thank you.

 - Project Blackwater-AEC Response Letter (4.4.01)a.doc


FYI...see attached.

Eric

---------------------- Forwarded by Eric Thode/Corp/Enron on 05/15/2001 10:01
AM ---------------------------

	Enron Capital & Trade Resources
	Canada Corp.

	From:  Peter Keohane @ ECT                           05/15/2001 09:51 AM

To: IT Calgary
cc: John J Lavorato/Enron@EnronXGate, Mark E Haedicke/HOU/ECT@ECT, Eric
Thode/Corp/Enron@ENRON

Subject: NGX et al Litigation Settlement - Press Release

The following message is to go to everyone in Calgary and Toronto ASAP.

We have settled our lawsuit with NGX, Canadian Enerdata, OM Gruppen and
Richard Zarzeczny, regarding the compilation and methodology for calculating
the Alberta natural gas price indices published by the Canadian Gas Price
Reporter.  By the terms of the settlement there will be a joint press release
issued this morning regarding the settlement, which is to be the only public
communication regarding the matter unless agreed to by all parties.  A copy
of the press release is attached below.  Otherwise the settlement is
confidential to the parties.  Accordingly, there is to be no formal or
informal discussion with media, colleagues, competitors, counterparties or
otherwise.  If you receive  request, simply reply that you understand that
the matter is confidential, but the request can be referred either to Rob
Milnthorp or me and we will respond as appropriate.

If you have any questions, please speak to Rob or me.

Peter Keohane.

 - Press Release-Enron Deal-May 15-2001..doc


It said "may" contain a virus.  Sorry!!!!

I looked at it and it looks fine.

Tom

 -----Original Message-----
From: 	"Lyne Martin" <lynemartin@msn.com>@ENRON
Sent:	Thursday, January 24, 2002 7:28 AM
To:	Martin, Thomas A.
Subject:	Oak Creek Cudas

http://www.eteamz.com/oakcreekcudas/ << File: http://www.eteamz.com/oakcreekcudas/ >>
Tom,

Do you like these colors better?

Lyne


Stuart,
I will add a governing law provision

-----Original Message-----
From: Stuart.Zisman@enron.com [mailto:Stuart.Zisman@enron.com]
Sent: Wednesday, February 27, 2002 12:32 PM
To: Proctor, Shemin V.; Joe.Parks@enron.com
Cc: Chris.Meyer@enron.com
Subject: RE: DRAFT 2/27/02

My thoughts are as follows:

1)  Generally looks good
2)  What about Governing Law?
3)  What about a provision that makes it clear that Buyer cannot offset
this payable against any other amounts that may be owed to Duke or its
affiliates
4)  In the as-is section - my guess is that they will object to the
absence
of some title rep.  I am ok to provide a special warranty as to title to
the gas but not other reps

Please revise accordingly ASAP and forward to Duke for their
consideration.
Shemin - Joe can provide you with an email address for the commercial
contact and my guess is that you have the necessary contact info for
Duke's
counsel.

Joe - do we know what bank we are going to use.  Shemin - what about the
draft of escrow agreement?

    -----Original Message-----
   From:   "Proctor, Shemin V." <sproctor@akllp.com>@ENRON
   Sent:   Wednesday, February 27, 2002 12:14 PM
   To:     Parks, Joe
   Cc:     Zisman, Stuart; Meyer, Chris
   Subject:  DRAFT 2/27/02

    <<Redline_.rtf>>
   Here is the revised draft. I spoke with the Duke attorney and he is
   taking "let me see it and I'll let you know" approach so let me know
if
   you have any additional changes and I will send it over to him.

   Also, it is my understanding that we must now have a Weil Gotschal
   bankruptcy attorney sign off on the deal
   so I am trying to find out who that person is and what needs to be
done.
    - Redline_.rtf << File: Redline_.rtf >>

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


---------------------- Forwarded by Darron C Giron/HOU/ECT on 09/11/2000
10:21 AM ---------------------------

"hollyw" <hollyw@email.msn.com> on 08/24/2000 08:14:22 AM
To: "Darron C Giron" <Darron.C.Giron@enron.com>, "Debbie Hall"
<gmind@icsi.net>
cc:
Subject: Fw: THE TRUE OLYMPIC SPIRIT

I say staged.

----- Original Message -----
From: "Warren, Stacy" <swarre02@coair.com>
To: "'Ugly Boo (E-mail)'" <hollyw@email.msn.com>
Sent: Monday, August 14, 2000 4:47 PM
Subject: FW: THE TRUE OLYMPIC SPIRIT

> Excellent!
>
> -----Original Message-----
> From: Wanda Harding [mailto:wharding@redsky.com]
> Sent: Monday, August 14, 2000 4:02 PM
> To: Alan Birchenough (E-mail); Alisa Mayfield Conboy (E-mail); Brian Mann
> (E-mail); Dave Pitschel (E-mail); Hazel Birchenough (E-mail); Heather
> Sullivan (E-mail); Ignacio Martinez (E-mail); Jeff Bishop (E-mail); Jeff
> Draper (E-mail); Jennifer Vodvarka (E-mail); Jim Terando (E-mail); Lori
> Stull (E-mail); Pegi Newhouse (E-mail); Rick Pleczko (E-mail); Warren,
> Stacy; Wes Manning (E-mail); Jeff Harris
> Subject: FW: THE TRUE OLYMPIC SPIRIT
>
>
>
>
>
> Subject:        FW: THE TRUE OLYMPIC SPIRIT
>
> <<sportszeru biciklis.mpg>>
>
>
>
>
>
>

 - sportszeru biciklis.mpg


Thanks

John Buchanan

 -----Original Message-----
From: 	Gray, Melody
Sent:	Friday, December 28, 2001 2:46 PM
To:	Smith, Chris A.
Cc:	Buchanan, John
Subject:	FW: NOTIFICATION: Outlook Outage - Friday, December 28, 2001

 -----Original Message-----
From: 	Joy Pardillo/Enron Communications@ENRON_DEVELOPMENT   On Behalf Of Enron Messaging Administration@ENRON_DEVELOPMENT
Sent:	Friday, December 28, 2001 2:32 PM
To:	Gray, Melody
Cc:	Chris Smith/Enron@EnronXGate
Subject:	RE: NOTIFICATION: Outlook Outage - Friday, December 28, 2001

Outage will begin at 11:00 tonight.

From:	Melody Gray/ENRON@enronXgate on 12/28/2001 02:13 PM
To:	Enron Messaging Administration@Enron
cc:	John Buchanan/ENRON@enronXgate

Subject:	RE: NOTIFICATION:  Outlook Outage - Friday, December 28, 2001

EMA,

A customer, John Buchanan with ETS, states that the outage must not start BEFORE 10:30 PM.  They have a scheduled maintenance cycle at 10:30 PM and they need to be able to send out confirmation emails to customers until that time.

Please communicate with John at 3-7429 and coordinate this outage.

Thanks,

Melody Gray
Resolution Center

 -----Original Message-----
From: 	Enron Messaging Administration
Sent:	Friday, December 28, 2001 1:56 PM
To:	DL-Exchange Server Maintenance
Subject:	NOTIFICATION:  Outlook Outage - Friday, December 28, 2001

This is a notice to inform you that the server where your Outlook mailbox resides is scheduled for an outage tonight.  Your mailbox will be temporarily unavailable starting anytime after 8pm and may continue to be unavailable until 12 a.m., when all server maintenance work have been completed.  Outlook Web Access (OWA) will also be unavailable during this time.

Blackberry users:  Message delivery may be delayed for a few minutes.

If you have any questions, please call the Resolution Center at x31411.


I have been traveling on business and also have just returned from vacation,
so I have not yet seen the proposal that you referenced.  I will hopefully
discover it as I go through my inbox in the next few days.

ConfirmCorp@aol.com on 07/19/2000 10:46:46 AM
To: sally.beck@enron.com
cc: connie.sutton@enron.com
Subject: Proposal for Electronic Confirmations

Dear Sally:

I hope you have had an opportunity to review the proposal I sent over to
Connie Sutton regarding Confirmation Clearing Corporation.  I am hoping Enron
will seriously consider moving to an electronic confirmation process and reap
all the benefits automation has to offer.  As an industry leader, this would
be another innovative move by Enron.

If you would like to discuss the possibilities, I would appreciate the
opportunity to visit with you.

Please call or respond via e-mail at your convenience.  Thank you.

Sincerely,

Chris Papousek
President, Confirmation Clearing Corporation
(713)823-4800


NYMEX Membership Services
February 5, 2001
Notice # 00-008

NOTICE OF INTENTION TO TRANSFER

Please be advised that effective with the close of business, February 5,
2001, the following member(s) have given notice of intention to transfer
their sole Membership within the Exchange:

Stephen Spivak (SPIV-6210)
William Korahais (CHIP-4969)

REINSTATEMENT OF MEMBERSHIP PRIVILEGES

Please be advised that effective with the close of business, February 5,
2001, the following member(s) has reinstated his membership privileges:

William Perlman (BYTE-4496) as a Full Member with a qualified trader
guarantee provided by Geldermann, Inc.

SWITCH OF LESSOR

Please be advised that effective with the close of business, February 5,
2001, the following member(s) will switch their lessor within the Exchange:

David Alcaro (CHF-3553)
Elisha Rothman (ELI-3325)
Vincent DiAngelo (MAD-3250)

Members and Member Firms have (10) days from the date of this notice to
advise the Corporate Secretary,s Office of any claims in accordance with Rule
2.51.

 Inquiries regarding the above should be addressed to the Member Services
Department at 212-299-2379.

__________________________________________________
Please click on the link below to indicate you have received this
email.

"http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&
refdoc=(MS-08)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.


can you email lavorato maggi's address


This memo has been updated with the 29th's data.


Ed, I would appreciate it very much if you would review the action item list
from Scott Jones and choose which items are Koch's responsibility and which
items  belong to EOTT, and let Scott and I know.  Ill contact Scott and have
him send you the action item list for your review.  As I had previously
mentioned, Scott and I have until 6/30 to complete the subsurface
investigations and knowing which items are EOTT's and which are Koch's would
greatly help us.  As Scott's server is down, Ill phone him and have him send
you the action item list.  Again Thanks very much.

From: Edward Attanasio@EOTT on 05/11/2001 10:55 AM PDT
To: Larry Campbell/ET&S/Enron@ENRON
cc: Louis Soldano/Enron@EnronXGate, Rich Jolly/ET&S/Enron@Enron, Scott
Jones/Bakersfield/Eott@Eott, William Kendrick/OTS/Enron@Enron

Subject: Re: Bakersfield Environmental Action Items

Sorry I have not responded sooner, but I've been tied up with the crude lines
transaction.

The mercury contamination by the old meter shop and hydrocarbon contamiantion
at the truck rack are Koch's responsibility.  Per EOTT/Koch contract, Koch
must be allowed to do the remediation.  I sent Koch a letter in December
requesting they undertake it.  I suggest a call (followed up by a letter) to
Frank Van Ryn at Koch to set it up.  I'm happy to review or write such a
letter.  But at this point, you guys should be coordinating with Koch for
Koch to remediate.

If any other items on your audit need to be addressed (e.g., chromium),
please let me know, as I will need to send a demand letter to Koch for them
if they are Koch's responsibility.  Thanks.  --ETA

	Larry Campbell@ENRON
	05/11/01 09:35 AM

		 To: Louis Soldano/ET&S/Enron, Edward Attanasio/Remote/Eott@Eott, Scott
Jones/Bakersfield/Eott@Eott
		 cc: Rich Jolly/ET&S/Enron@Enron, William Kendrick/OTS/Enron@Enron
		 Subject: Bakersfield Environmental Action Items

Louie/Ed I know you guys are busy, but because of the emphasis Enron places
on ensuring that action items from consolidated audits are completed prior to
the action item completion date, I really need to know how Scott and I are to
proceed on the subsurface drilling activities for potential contamination at
the Bakersfield Fractionator.  The scheduled completion date for six of the
items is 6/30.  I understand the there is an issue concerning Koch's
individual and shared responsibility for some of the issues identified during
the audit.  Rich Jolly has contacted me asking me when the drilling will
begin, as he does not want to see us exceed the 6/30 date and have the items
show up as deliquent in his region.  Whatever you can do to assist us in
either initiating the investigations or placing a hold on the drilling would
be greatly appreciated.


i think he would be the jackass we hate at earls.  but, i'm approaching him with the new jordey-inspired don't worry be happy mentality and its working great!

i feel like i didn't get closure last night after seeing the place.  maybe that nook in the main room could be for a computer?


PORTFOLIO REPORT - from Lycos Finance
Friday, Jan 25 2002 (generated at 03:00 PM PST)

Symbol      Close               Change     Today +/-             Total Return
-----------------------------------------------------------------------------
BEOS         0.13      +0.01  (+8.33%)       $+10.00       $130.00  (-99.26%)
EEX          2.19      -0.01  (-0.45%)       $-10.00      $2190.00  (-20.36%)
GW           3.11      +0.04  (+1.30%)      $+600.00     $46650.00  (+46.35%)
KCS          2.40      -0.17  (-6.61%)     $-2550.00     $36000.00  (+92.00%)
KEG          8.35      +0.27  (+3.34%)     $+2700.00     $83500.00  (+59.05%)
MHR          7.35      +0.11  (+1.51%)      $+550.00     $36750.00  (+83.75%)
TMR          3.33      -0.12  (-3.47%)     $-1800.00     $49950.00  (-26.00%)
-----------------------------------------------------------------------------
Totals                                      $-500.00    $255170.00  (+21.01%)

Index          Last              Change
---------------------------------------
DOW Jones   9840.08    +44.01  (+0.44%)
NASDAQ      1937.70     -4.88  (-0.25%)
SP500       1133.28     +1.13  (+0.09%)

=============================================================================
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NEWS FOR THIS PORTFOLIO:
-----------------------------------------------------------------------------
KEG:       Bear Stearns & Co., Inc. (ENR, MMS, RNR, KEG, AIG, ESV, BORL,
           PRGN, RTN, TRW, WAT, MEDI, LWIN)
           - Jan 25 2002 10:03AM (JAGnotes)
           - http://finance.lycos.com/home/news/story.asp?story=26019469

KEG:       Friedman, Billings, Ramsey & Co., Inc. (ITWO, DCTM, PGR, HTHR,
           ACI, KEG, PCS, NXTL, AWE, PMCS, BVSN, EMC, CRTK, EWBC)
           - Jan 25 2002 9:16AM (JAGnotes)
           - http://finance.lycos.com/home/news/story.asp?story=26019253

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Okay, all.  I am sure there is a very good deal behind this, but do any of you know where the recently received, state of West Virginia title to a used trailer belongs?  The year of the trailer is 1995, the make of the trailer is "NORS", and the serial number is N01020318TN.  The title was issued by WV on 09/26/01 to Enron North America Corp., no lienholder (well, that's a good fact!).

Please ask around your groups regarding who is interested in holding on to this title.  Unless otherwise notified, I am going to have it sent to the vault.  Please call me if you know to whom it should be directed.

Mary Heinitz
Senior Legal Specialist
mary.j.heinitz@enron.com
713-853-3245 (phone)
713-646-3393 (fax)


Peggy,

Is it the 4 Points or Eau Claire Sheraton?  I'm trying to book her a room for
Tuesday evening.

Thanks,
Patti x39106

	Peggy Hedstrom
	01/20/2001 09:23 AM

To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Operational Risk Meeting

We are set up for the meeting on Operational Risk on February 6th at 3:00
pm.  We have a room booked at the Sheraton with a set up similar to the
Houston meeting.  I have invited three people from the accounting department
to attend as well.  Laura Scott, Cheryl Dawes, and Dave Hanslip will be the
attendees from accounting.  Everyone is looking forward to meeting with you
to discuss this issue.  So far, the weather is still mild.  Talk to you soon.
Peggy


Mark,  Attached is the Howell Petroleum comments we discussed.  Please handle
accordingly.

Joe Russo's numbers are (307) 332-3940
   (307) 850-4341 cell phone

Joe,  Mark Van Skoyk in our Denver office will be taking the lead on all Lost
Creek ROW issues.

Thanks.
---------------------- Forwarded by Gerald Nemec/HOU/ECT on 10/15/99 04:14 PM
---------------------------

joseph russo <hitekdude55@netscape.net> on 10/13/99 02:34:32 PM
To: Gerald Nemec/HOU/ECT@ECT
cc: Jon Roderick <jon88@mindspring.com>, Jim Taylor <jim.taylor@merrick.com>
Subject: Fwd: []

____________________________________________________________________
Get your own FREE, personal Netscape WebMail account today at
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Message-ID: <01BF1568.78BD09A0.mheathcote@howellcorp.com>
From: Mark Heathcote <mheathcote@howellcorp.com>
Reply-To: "mheathcote@howellcorp.com" <mheathcote@howellcorp.com>
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Date: Wed, 13 Oct 1999 10:48:22 -0500
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Joe

I have tried to call you several times but no luck.  I want to discuss the
proposed right of way.

With reference to consideration, Howell is not agreeable to 10% down.  We
expect 100%, further I believe we will require a minimum of $2,500
providing we agree on $12.00 per rod.

In the grant delete "communication line(s)".  Line 7 insert "pipeline"
before "communication equipment".  Further we need to delete any reference
to surface equipment other than markers, wireleads, vent pipes and
communication equipment.  If a gate plant, ground valve, pigging equipment
or cathodic protection equipment is to be located on Howell's property we
will need other agreements.  The systems Howell operated in Texas,
Louisiana, Mississippi, Alabama and Florida were contracted in this manner.

Paragraph 3 we need to address our current operations in the area and its
precedence.

Paragraph 4 replace normal plow depth with a "minimum of four (4) feet"

Paragraph 8 and 12 I think will not be approved by management and it would
make expediting the execution of this document easier.

Paragraph 9, Howell in no way will grant any Power of Attorney for
anything.  Any amendment will be executed by Howell.  Delete all references
to POA in entire agreement and Exhibits.  Further we prefer the entire
right of way be recorded not a memorandum.

Paragraph 16 after "Right-of-way Grant" insert except for the term
"pipeline".

Paragraph 17 delete any reference to Tenant in the entire agreement.  We
will secure execution by the Bank, you may deal with the tenants.

Further, I believe we will need an indemnification provision protecting
Howell from any operation performed pursuant to this grant.

Let's talk.  We will make a deal that all parties can live with.  Our
perspective is a little different than the average rancher.

Mark W. Heathcote, CPL
Howell Petroleum Corporation
1111 Fannin, Suite 1500
Houston, Texas 77002-6923
(713) 658-4126
(713) 658-4114 Fax