ISDA PRESS REPORT - WEDNESDAY, NOVEMBER 15, 2000

* Reform of investment rules urged
* US Election Has New Commodities Laws In Legislative Limbo
* AG Subcommittee Candidate Raises Eyebrows
* SFE Cleared To Sell In US Markets Digest
* Levitt's Options Penny Postulation Too Pricey?

Reform Of Investment Rules Urged
Financial Times - November 15, 2000

The European Commission is pressing for a radical overhaul of its investment
rules to keep up with the accelerating pace of change in securities markets
and to encourage more cross-border trade.

Frits Bolkestein, the EU's single market commissioner, will launch a
widespread consultation process on Thursday to discuss the changes needed to
the EU's investment services rules.

The update of the EU's investment services legislation is one of the top 10
priorities set by the Commission for its financial services work in the next
six months. EU heads of government want to complete the integration of the
financial market by 2005 as part of the drive to improve competitiveness.
Financial services accounts for 6 per cent of EU gross domestic product and
this is expected to grow rapidly as the euro and new technology lead to a
more integrated capital market.

Part of the drive to overhaul the investment legislation is the Commission's
recognition that its "single passport" rules allowing a firm to sell
investment services across the EU as long as it complies with supervisory
rules in its home country, do not work well in practice. This is because too
many countries impose their own additional, specifically local restrictions
in the name of investor protection.

The Commission now wants to ensure that home country rule is enforced for
all professional investors such as pension funds and other institutions and
any local restrictions removed. National supervisors may still impose some
restrictions on services provided to retail
investors, but these should be kept to a minimum. This involves countries
agreeing on a common definition for a professional investor - generally an
institution. But sophisticated individual investors can also apply to be
treated as professionals if they have enough experience and a large
portfolio.

Mr. Bolkestein also wants to stimulate discussion among countries about how
to achieve more common regulation of markets and trading systems, including
new electronic trading arrangements. It is vital for the Commission to
address the discrepancies in regulation between different markets.

There is a danger that EU rules will not keep up with the growing number of
mergers between securities exchanges and the development of electronic
marketplaces that are used across borders.

The consultation exercise will take place until March next year after which
the Commission will legislate.

US Election Has New Commodities Laws In Legislative Limbo
Dow Jones News Service - November 15, 2000
By Dawn Kopecki

Like everything else in Washington these days, the push for new U.S.
commodities laws is stuck in legislative limbo with an unresolved
presidential election and an undetermined end to the congressional session.

Lawmakers were expected to finish outstanding budget work and a handful of
policy bills by the end of this week. But they decided Monday to suspend all
legislative action for the next three weeks, returning to work in early
December.

"At some point or another, we have to do our job. But it's very hard to do
when the election isn't settled," said Sen. Phil Gramm, R-Texas.

The Senate Banking Chairman, who objects to the commodities legislation
being considered in the Senate, didn't rule out anything regarding new
derivatives laws or bankruptcy rules Tuesday. He spoke with reporters after
the Senate GOP's weekly policy lunch.

"There's still a lot here to be done," Gramm said, responding to a question
about the commodities bill and possible bankruptcy laws.   "There are a lot
of things that could happen." Senate Agriculture Chairman Richard Lugar,
R-Ind., hasn't yet decided whether he will push legislation that merely
extends current commodities laws or press Senate leaders to pass the House
bill that overhauls the laws that oversee the $94 trillion derivatives
industry.

"There are so many things up in the air," said Senate Agriculture
spokeswoman Tiffany Steele.

Lugar has said in the past that he could bring up the commodities bill that
passed the House 377-4, over Gramm's objections, and attach it to a federal
spending bill before Congress adjourns for the year.

"That's one of the options being considered," Steele said. The House bill
excludes OTC contracts from U.S. commodities laws, eases regulations for
U.S. futures exchanges and lifts the 18-year ban on single-stock futures.

The most recent statistics available placed the total estimated worldwide
notional value of outstanding over-the-counter derivatives contracts at $94
trillion at the end of June, according to the Bank for International
Settlements.

Ag Subcommittee Candidate Raises Eyebrows.
Wall Street Letter - November 13, 2000
By Dan Freed

One of the more interesting possibilities in the forthcoming appointment of
new committee leadership positions in the House of Representatives in the
wake of last week's elections - which has thus far escaped the notice of
many in Washington - involves a subcommittee chairmanship and a crucial
piece of legislation.  A number of committee leadership positions that are
critical to the interests of Wall Street are still considered to be open.

Nick Smith, R-Michigan, was one of only four members of the House of
Representatives who voted against the Commodity Futures Modernization Act
last month. Nevertheless, Smith is in the running to be appointed chairman
of the House Agriculture subcommittee for Risk Management, Research, and
Specialty Crops, which wrote the legislation. If the bill, which would
overhaul commodity trading regulations, doesn't pass Congress this year,
Smith could well find himself responsible for writing the next one.  A
spokesman for Smith did not provide an explanation for the congressman's
vote by press time, and he had no comment on whether Smith would pursue the
subcommittee chairmanship.

One lobbyist could not explain Smith's vote, but suggested that the
congressman didn't have a solid understanding of the issues surrounding the
legislation. "He's very strange. He attends most of the hearings, but he
zeroes in on things that don't matter to many people - delivery points with
[Chicago Board of Trade] grain contracts. People in the audience snicker
when he asks questions." The lobbyist conceded, however, that "[Smith is]
always open to listening to everyone's concerns." The Smith spokesman did
not return a call requesting a response to these comments.

Another lobbyist was less critical, pointing out that CBOT delivery points
are an important issue for Smith's constituents, as well as others in his
region. The first lobbyist doubted that Smith would get the chairmanship,
and seconded a House staff member's guess that the post would go to Frank
Lucas, it-Oklahoma, who represents both energy and agricultural interests,
giving him ties to the futures and over-the-counter communities. Other
possibilities are John Boehner, it-Ohio, and Terry Everett, R-Alabama.

Full Committee chairmanships said to be still undetermined in the House
include the two principal financial industry oversight committees, Banking
and Commerce.  Marge Roukema, R-New Jersey, has seniority in the Banking
Committee, but Richard Baker, R-Louisiana, is considered a contender.
Michael Oxley, R-Ohio, has also been rumored as a possible Banking chairman,
though he announced his candidacy for the Commerce position last week.  W.J.
"Billy" Tauzin, R-Louisiana, has also staked a claim to Commerce, and his
battle with Oxley, which has flared up in public on occasion, will be
interesting to watch.  Chairmanship of the House Ways and Means committee
which is responsible for tax issues, is also in question.  Either Philip
Crane, R-Illinois, or William Thomas, R-California could get the nod.

SFE Cleared To Sell In US Markets Digest
Financial Times - November 15, 2000

SFE cleared to sell in US The Sydney Futures Exchange said yesterday it was
now permitted to directly offer its stock futures and options contracts to
US customers.

The exchange said it had obtained authorisation from US regulator, the
Commodity Futures Trading Commission, and its Share Price Index 200 products
were now available to customers globally.

Introduced in May, the SPI 200 futures and options are based on the S&P/ASX
200 index, the new benchmark equity index for Australian markets. SFE's
interest rate and commodity products are already available for trading to
customers worldwide.

Meanwhile, the Australian Derivatives Exchange (ADX) said yesterday it was
confident it would be able to open for business within weeks and a firm
launch date would be announced as soon as possible.

The ADX said it believed it was in the final stages of satisfying the
information and documentation requirements of the Australian Securities and
Investment Commission, which was in the process of assessing the exchange's
market application.

Originally scheduled to be launched on October 20, the ADX had postponed its
launch date to the middle of November, saying more time was required to
complete the regulatory process.

ADX is intended to be a fully electronic derivatives exchange with a global
focus.

Levitt's Options Penny Postulation Too Pricey?
Wall Street Letter - November 13, 2000

Securities and Exchange Commission Chairman Arthur Levitt's recent
suggestion that the Commission may ban trading and quoting of options
contracts in increments larger than a penny has drawn considerable
skepticism from a market data expert, who said that trading options in
pennies would cause a tremendous strain on industry information systems. Leo
McBlain, who chairs the Financial Information Forum, an industry
organization devoted to information systems matters, said that were the
Commission to mandate that options trade in pennies, it could
conceivably cause some firms to choose to abandon the product altogether, if
they determined that the cost of bringing systems up to speed outweighed the
revenue it generated.

During a speech delivered just over a week ago at the Fordham Law School in
New York City, Levitt suggested that the Commission might mandate penny
increments for options, just as it has for stocks.

McBlain explained that one equity stock can generate as many as 60 options
contracts, due to different information about prices and expiration dates.
He noted that options data already accounts for roughly 70% of all market
data generated in North America. Increasing the number of options pricing
possibilities by five or 10 times could generate far more message traffic
than current systems can handle. Updating those systems could be
tremendously costly, he said, though he wasn't aware that any cost estimates
have been made thus far.

John Panchery, who heads the Securities Industry Association's decimals
conversion project, said that industry attention is still focused on
ensuring that it will be able to handle the additional message traffic that
will be generated when Nasdaq converts to decimals in the spring. He said it
was too early to say whether trading options in pennies within a year was an
unrealistic goal, or whether such a mandate from the SEC might cause some
firms to choose not to trade options. An SEC spokeswoman declined to
comment, noting only that Levitt said in his speech that he "did not
underestimate the technological and regulatory challenges [options] markets
face."

End of ISDA Press Report for Wednesday,  November 15, 2000.

THE ISDA PRESS REPORT IS PREPARED FOR THE LIMITED USE OF ISDA STAFF, ISDA'S
BOARD OF DIRECTORS AND SPECIFIED CONSULTANTS TO ISDA.  THIS PRESS REPORT IS
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NOT RESPONSIBLE FOR ANY USE TO WHICH THESE MATERIALS MAY BE PUT.


---------------------- Forwarded by Dana Davis/HOU/ECT on 12/06/2000 11:50 AM
---------------------------

	Lola Willis @ ENRON
	12/06/2000 10:38 AM

To: debra_atkins@co.harris.tx.us, sweetp@netropolis.net, bill481@excite.com,
dana davis@enron.com, Laura Gutierrez/HOU/ECT@ECT
cc:
Subject: Are you worth it?

---------------------- Forwarded by Lola Willis/Corp/Enron on 12/06/2000
10:37 AM ---------------------------

"Mims, Valerie" <valerie.mims@bankofamerica.com> on 12/06/2000 09:59:56 AM
To: lola.willis@enron.com, prhusband@shellus.com, "Slaughter, Glenda"
<glenda.slaughter@bankofamerica.com>
cc:

Subject: Are you worth it?

 <<ROLO_1.mpeg>> Saving the last for the best or was that the best for last?
Just wanted to see you smile...Peace!

 - ROLO_1.mpeg


Don,

Please advise of your interest in Andrew's experience.

Thanks,
Johnny

 -----Original Message-----
From:  Greer, Andrew
Sent: Monday, April 30, 2001 12:04 PM
To: Palmer, Johnny
Subject: Hourly Trading Desk

Johnny:

Thank you for your prompt response to my phone call this morning.  Attached
is a resume and cover letter for your review.  If you recall from our
conversation Friday, I was visiting with Tony Vasut about positions on your
power trading desk as an hourly trader.  The power desk is something I have
been interested in learning more about for several months.  When you informed
me of the current opportunities as an hourly power trader I was extremely
interested.  I would love to meet with you or anyone from the desk at your
convenience to discuss the opportunities in detail.  Please feel free to call
at X58039, or reply to this e-mail.
Thank you again for your time.

Sincerely,
Andrew Greer


I got your message from the 1400smith web site.  I'm still working (for now).  I've been in the gas pipeline group since late '99 doing marketing and now business development.  I'm the lead developer on a new gas line project going to Phoenix but it's pretty tough to develop new business when you don't have any money!

Anyway, Lou hit the panic button over Thanksgiving and got herself 2 part-time jobs (every little bit helps).  Everyone is doing fine otherwise.

Hope you, Dorothy, and the kids are all fine.  Write when you get a chance.

Warmest Regards,
Kevin Hyatt
713-853-5559
home email: jhyatt@msn.com

P.S.  I just had the FBI in my office asking questions and looking for "documents".  This is so much fun :-(


sounds good

I will make sure the trading stuff get there. Any dirt on my brother would be greatly appreciated.

 -----Original Message-----
From: 	Gaffney, Chris
Sent:	Friday, December 14, 2001 11:58 AM
To:	Dorland, Chris; Hedstrom, Peggy; Scott, Laura; Zufferli, John; Le Dain, Eric; Davies, Derek; Keohane, Peter; Milnthorp, Rob; Devries, Paul; Gillis, Brian
Cc:	Brodeur, Stephane; Clark, Chad; Richey, Cooper; Taylor, Michael J.; Taylor, Fabian; Draper, Lon; Cooke, Ian; Torres, Carlos; Lambie, Chris; Cowan, Mike; Watt, Ryan; Drozdiak, Dean; Hrap, Gerry; Oh, Grant; Laporte, Nicole; Dunsmore, Paul; Macphee, Mike; Biever, Jason; Otto, Randy; Johnston, Greg; Cappelletto, Nella; Dorland, Dan; Wilson, Jan; Rondeau, Clayton; Martin, Brad
Subject:	RE: Critical Applications, Models and Data

Chris - In order that we are able to set up the transfer of files in an orderly fashion and, more importantly,  maintain security protections for certain directories (e.g. legal) I believe a better approach is to replicate our existing directory tree structure under a new I:/Newco/ directory.  At this level we can then break things out into the required subfolders (e.g. accounting, trading, legal, ...).

In this regard we have set up the I:/Newco/ directory and started to create subfolders. I ask everyone who has put information in the I:/trading/newco directory to move it to  I:/Newco/ under their applicable subdirectory (which may need to be created).  I apologize that this is a hassle for those who have already transfered files.

If you have any concerns please let me know.

Regards
Chris

 -----Original Message-----
From: 	Dorland, Chris
Sent:	Thursday, December 13, 2001 10:58 AM
To:	Hedstrom, Peggy; Scott, Laura; Zufferli, John; Le Dain, Eric; Davies, Derek; Keohane, Peter; Milnthorp, Rob; Devries, Paul; Gillis, Brian
Cc:	Brodeur, Stephane; Clark, Chad; Richey, Cooper; Taylor, Michael J.; Taylor, Fabian; Draper, Lon; Cooke, Ian; Torres, Carlos; Lambie, Chris; Cowan, Mike; Watt, Ryan; Drozdiak, Dean; Hrap, Gerry; Oh, Grant; Laporte, Nicole; Dunsmore, Paul; Macphee, Mike; Biever, Jason; Otto, Randy; Johnston, Greg; Gaffney, Chris; Cappelletto, Nella; Dorland, Dan; Wilson, Jan; Rondeau, Clayton; Martin, Brad
Subject:	Critical Applications, Models and Data

Hi everyone!

Once again I find myself being tasked by Geof Storey. Houston has requested that we make lists of all applications that we use and also that we consolidate all of the files (models and data) that are critical to our business (I don't think MP3's count) into one directory on the network. This is so that these items can be included in the proposed deal with newco. The Calgary Trading group has set up a directory on I:/trading/newco and I think if each group did the same that would be great. Each group should probably have one person in charge of the directory so there isn't any overlap. Call me with any ?'s/

Thanx

Chris


Don't we need to chat about this?


The report named: West VaR <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=36&report_name=West+VaR&category_cd=2&category_name=WEST&toc_hide=1&sTV1=2&TV1Exp=Y&current_efct_date=11/07/2001>, published as of 11/07/2001 is now available for viewing on the website.


Jim:
It was a pleasure speaking with you on Wednesday.  Based on our conversation,
this email includes the following:

An Enron contact to discuss developing small-scale generation on Tribal lands.

Our views on the impediments to distributed generation and suggestions on how
to remove those impediments.

A description of the credit issues that continue to impede DWR,s ability to
sign contracts with power suppliers, and options to resolve them. Two
possible options for addressing the credit issue are 1) a California PUC
order clarifying that DWR will recover its power purchase costs through
rates, and 2) an amendment to AB1X designed to accomplish the same goal.  I
have attached talking points regarding the California PUC order and proposed
amendments to AB1X.  We believe that an amendment to AB1X is the preferable
option.

Our assessment of the supply/demand picture in California.

Our suggestions for a legislative package designed to solve both the near-
and long-term electricity crisis in California.  We will deliver to your
office today detailed legislative language.  In those materials we will also
identify existing bills that we believe can easily accommodate our proposed
language.

I hope that the information is useful.  Please do not hesitate to contact me
if you would like to discuss these materials further, or if there is anything
else that I can do to assist you.

Regards,
Ken Lay

Contact Information to Discuss Interest Expressed by Native American Tribes
in Installing Small-scale Generation on Tribal Lands

David Parquet, Vice-President
Enron North America
101 California Street, Suite 1950
San Francisco, CA 94111
Phone: 415.782.7820
Fax: 415.782.7851

2. Key Barriers to Distributed Generation

Excessive and Unnecessary Utility Stand-by Charges

Solution: The executive orders issued by the Governor on February 14th took a
step in the right direction.  Utility stand-by charges have always been
designed by the utilities to protect their monopoly position, extract
monopoly prices from customers, or both.  But there is no reason to limit the
elimination of these charges to generation facilities that are less than
1MW.  These limits will only lengthen unnecessarily the time it takes for
California to close the significant gap between supply and demand and reduce
the risk of black outs this summer.  We would propose lifting the cap by
offering amendments to SB27X, which is designed to facilitate development of
distributed generation.

Excessive delays and costs related to interconnecting facilities with
investor-owned and municipal utilities

Solution:   The Governor,s executive order regarding interconnection is a
step in the right direction*D-D-26-01 requires utilities to complete
interconnection studies within 7 days.  California should ensure that this
requirement applies to all generation facilities, including distributed
generation.  In addition, the financial conflicts the utilities face when
interconnecting generation facilities are simply too powerful to overcome
through executive orders or other regulations.  To the greatest extent
possible, California should shift control over interconnection away from the
utility and place that control with the California ISO.  This could be
accomplished through amendments to SB 27X.

Permitting and Air Quality Issues
Developers of distributed (i.e., &on-site8) generation that is 50 MWs or
greater must receive certification from the California Energy Commission and
therefore face all of the impediments to development that large-scale
generation faces.

Solution: California should ensure that the executive orders (D-22-01 thru
D-26-01) issued by the Governor to expedite plant siting and maximize plant
output apply equally to smaller scale, &distributed generation8 facilities.
In addition, distributed generation that is less than 50 MWs continues to
face local opposition.  The State should ensure that local, parochial
interests cannot block otherwise beneficial distributed generation projects.
These objectives could be accomplished through amendments to SB27X.

3. Credit Concerns Regarding Authority Granted to DWR in AB1X to Purchase
Electricity on Behalf of the Utilities

Enron responded to the RFP issued by DWR to enter into power contracts with
suppliers.
Enron is in active discussions with DWR to establish contract terms with the
goal of entering into a power purchase agreement as soon as possible.
However, ambiguities contained in AB1X have created significant credit risk
concerns that need to be resolved in order to finalize contract terms.
We understand that the lion,s share of counterparties share Enron,s credit
risk concerns.
Enron has proposed several options for resolving the credit risk issues and
is working with DWR to arrive at a solution that is mutually agreeable to
both sides and that might serve as a template for power purchase agreements
going forward.

Summary of the Source of the Credit Risk Issue

Ambiguous Ratemaking Authority
The language in AB1X is ambiguous as to whether DWR has any authority to
charge California ratepayers for the costs of purchasing power.  From our
analysis of the bill, the language in AB1X appears to leave intact the
California PUC,s exclusive jurisdiction over ratemaking in California.  As
such, suppliers have no assurance that the PUC will agree to include in rates
adequate charges to cover DWR,s costs of power purchases.

Ambiguous Regulatory Authority Regarding Contract &Prudence8
The language in AB1X leaves open the possibility that the California Public
Utilities Commission could determine that power purchases made by DWR are
&imprudent.8  On the basis of such a finding, the CPUC could then refuse to
allow DWR to collect from ratepayers the costs associated with its power
purchases.  Consequently, suppliers have no assurance that the PUC will agree
to include in rates the charges to cover the costs of power contracts that
DWR has entered into with suppliers.

Ambiguous Language Regarding the Ratemaking Mechanism that Will Be Used to
Recover DWR,s Costs of Power Purchases
In addition to the ambiguity regarding ratemaking and regulatory authority
noted above, the language in the bill is equally ambiguous with respect to
the specific ratemaking &mechanics8 that AB1X directs the PUC to employ to
permit DWR to recover its power purchase costs. Based on our analysis, it is
extremely difficult to determine how the PUC would design the rates to ensure
DWR recovers its power purchase costs.  Moreover, as currently drafted, it is
difficult to determine whether AB1X would even permit the PUC to include in
rates all of the charges necessary to fully recover DWR,s power purchase
costs.  Again, this ambiguity raises significant credit risk concerns since
suppliers have little assurance that DWR will have the ability to recover
from ratepayers the costs of purchasing power.

Options to Resolve Concerns Regarding Credit Risk

We have been working diligently with DWR officials to resolve the credit risk
issues.  We have identified three options:

Amend AB1X
The amendments, which are attached to this email, would clarify that a) the
PUC would accept as &prudent and reasonable8 all purchase costs incurred by
DWR, and b) the PUC is obligated to include in rates the charges necessary to
ensure that DWR fully recovers its costs of power purchases.  This is the
preferred option, though we understand that the there may be some political
challenges standing in the way of amending AB1X.  (See attached file
entitled, &AmendAB1X.doc8.)

Clarify the Ambiguities in AB1X through an Order Issued by the PUC, and
through Contract Language
This is the option that we are currently working with DWR officials to
implement.  However, it is more complicated and could take significantly more
time to implement than the "legislative" fix.  We have attached electronic
copies of the talking points related to the order that the California PUC
would need to issue under this option.  (See attached file entitled,
&cpuctalkingpoints.doc.8)

Make Use of Other Instruments Designed to Address Credit Risk
As indicated in our letter responding to DWR,s RFP, we are willing to accept
other forms of credit from DWR.  Those options include a letter of credit,
cash prepayment, or an acceptable form of collateral.  DWR officials have
indicated to us that DWR prefers to pursue the second options. That is, DWR
prefers to clarify the ambiguities in AB1X through a PUC order and through
contract amendments.

4. California,s Supply-demand Picture Heading into Summer 2001

Both the California Energy Commission and Cambridge Energy Research
Associates (CERA), a private sector energy think tank, have issued reports
showing that California faces a severe supply-demand imbalance.  They differ
only on how much and how soon additional supply will be made available.  All
credible sources agree that supply will be very tight throughout the Summer
of 2001 and that unless a solution is found immediately, blackouts are
likely.

CEC and CERA both forecast that California will be short of supply this
summer by approximately 5,000 MW.   These numbers are in line with our
estimates.  California,s supply base currently has a 6% capacity margin, well
below the average 15-20%, which is recommended for reliable system operation
in the West.  Since the West relies more heavily upon hydroelectric power
than other regions, reserves are particularly important, owing to the
unpredictability of the weather and the dry year the West has experienced to
date. In the event of a low rain and snow period, the system must possess the
flexibility to respond to the reduced availability of power supply.
California,s very low reserve margin makes it especially susceptible to this
requirement.

Other reasons for reduced supply for the Summer of 2001 include the early
draw-down of reservoirs in the continual effort to manage California's severe
supply-demand gap; emissions restrictions on existing plants; and a reduced
number of customers who can be curtailed under their contracts with the
utilities.  Cambridge Energy Research Associates asserts that at the current
pace of siting, permitting and construction, adequate supplies will not be
added to correct the market imbalance until 2003 at the earliest.

CERA predicts that California is likely to face approximately 20 hours of
rolling black outs this summer.  The CEC paints a considerably more
optimistic scenario, betting that California will bring an additional 5,000
MWs on line to meet peaking summer demand.  It is our view that California
should view the CEC's "rosy scenario" with considerable skepticism.

5. Suggested Package of Legislative Proposals Designed to Solve California,s
Electricity Crisis

This email offers an overview of our proposed legislative solution.  We will
deliver to your office tomorrow specific legislative language and existing
bills that we believe can accommodate our proposals.

As we have suggested throughout the crisis, any solution to California's
crisis must focus on four issues:

Increase supply
Decrease demand
Establish a truly competitive retail electricity market
Return California,s Investor-owned utilities to solvency

Increase supply--Legislative vehicle: SB28X (Sher)
To site and construct a power plant in Texas takes approximately 2 years.
Enron and others have completed the entire process in other states in less
than a year.  In California, it takes about six years, or longer.

The Governor,s executive orders and Senator Sher,s siting reform legislation
are steps in the right direction.  Our suggested amendments can improve those
efforts by further addressing the difficulties that project developers face
in securing air emission reduction credits to meet the air permit
requirements included in the CEC's certification requirements.  Enron,s
proposal seeks to streamline the process for 1) obtaining credits and 2)
transfering credits between air districts.  In addition, it creates an
innovative emissions reduction bank to allow project sponsors to fund
emissions in advance of obtaining certification, and permits the affected air
districts to use those funds to finance projects that will produce the
required reductions in pollution emissions.

Decrease demand*Legislative Vehicle:   AB31X (Wright)
Because of the delay in getting a solution in place in California, closing
the supply-demand gap through energy conservation and efficiency offers the
best chance of avoiding blackouts this summer.  This can be accomplished most
effectively and quickly in two ways:

Buy-down demand
California is tapping into an enormous amount of money from the General Fund
to finance DWR,s power purchases.  California could likely reduce demand more
economically by running an auction to determine the payments businesses would
be willing to receive to reduce their demand for a sustained period (e.g.,
through the summer months).  DWR could easily run an on-line auction to
determine the price it could pay for these demand reductions.  To
participate, businesses would be required to have the metering equipment
necessary to monitor and verify that they are actually achieving the
reductions.  Enron has developed an on-line auction software package, &Deal
Bench,8 that it would be willing to contribute to the effort.

Use Price Signals to Incent Voluntary Curtailment
To be successful, customers need access to the following key elements:

An internet based hour-ahead price posting system to track the market price
for hour-ahead power in real time.
Real-time metering systems for baseline demand and voluntarily curtailment
verification.
Settlement process that allows for market clearing prices of energy to be
paid for load reduction (&Negawatts8).

The potential benefits of an effective demand response program would include:

&creation8 of additional summer peaking capacity in California, particularly
in the short term, without requiring construction of additional generation
resources.
reduction of  peak or super-peak load on the over-stressed California
electric system, thus potentially reducing the overall cost of electricity in
the state.
fostering of demand elasticity without subjecting customers to the full risk
of hourly market price volatility by passing market price signals to
customers and allowing them to voluntarily shed load and be compensated for
responding.

We estimate that we could generate a summer 2001 on-peak demand response in
excess of 400 MW during certain high cost hours, and a demand response for
summer 2002 on-peak hours that could exceed 1000 MW.  We further estimate
that the market response to this program from all ESPs could be 2 to 3 times
that amount.  We recommend that the State of California provide rebates
directly to customers to fund the installation of advanced metering and
control systems that would support load curtailment implementation.

Establish a truly competitive retail electricity market*Legislative vehicle:
SB27X
The only customers who were protected from price volatility in San Diego were
customers who chose Direct Access and signed fixed price deals with energy
service providers.  Ironically, AB1X takes that important option away from
customers and businesses.  It is critical that AB1X be amended to remove the
prohibition against Direct Access.

Enron's legislative proposal would give customers freedom to enter into a
direct access transaction, while simultaneously addressing the Department of
Water Resources' concerns about stranded power costs that might result from
customer migration.

In addition, California will only achieve a competitive retail market when
the utility is removed completely from the procurement function.  Procurement
is not a utility core competency, as evidenced by the dire financial
condition in which the utilities now find themselves.  California should
therefore begin immediately to phase the utility out of the procurement
function entirely, with the goal of having all customers served by a
non-utility provider within 36 months.  To execute the transition, California
should hold a series of competitive solicitations over the 36-month period in
which competing service providers would bid for the right to serve segments
of utility load.

Return California,s Investor-owned utilities to solvency*Legislative vehicle:
AB18X
Utility bankruptcy will not increase supply and it will not decrease demand.
In short, bankruptcy does nothing to solve California,s supply-demand
imbalance.  In addition, bankruptcy increases the likelihood that consumers
and businesses will bear the significant financial risks of having California
State government assume the role of &electricity buyer8 for an extended
period of time.  Finally, bankruptcy will undermine both investor confidence
in California's energy markets and the private sector's willingness to
participate in that market.

California can return the utilities to financial solvency by implementing a
series of staged rate increases.  California should design those rate
increases with the dual goal of returning the utilities to solvency without
&shocking8 the economy or household budgets For example, California could
amortize the recovery of the utilities, past debt over a 5-10 year period.
In addition, the magnitude of the rate increase can be reduced in two ways:
First, the utilities could absorb some portion of their existing debt in
recognition of the risk they accepted when they agreed to the structure of AB
1890.  Second, California can &net8 the revenues the utilities have received
from selling electricity into the Power Exchange against the debts they have
accrued due to the retail price cap.


FYI
---------------------- Forwarded by Paul Y'Barbo/NA/Enron on 03/09/2001 05:55
PM ---------------------------

Sunita Katyal@ENRON_DEVELOPMENT
03/08/2001 06:48 AM
To: Paul Y'Barbo/NA/Enron@ENRON
cc:

Subject: Re: Weekly Report for LNG Conf. Call on Monday, March 5 at 7:00 a.m.
(Houston time), 5:00 p.m. (Dubai time)

Hello Paul,

The password is :

lngdubai

The password is case sensitive - they are all in lower case.

Regards,
Sunita


[IMAGE] "I'm writing to tell you about a flight I just purchased through my Active Advantage membership. A last-minute trip came up where I needed to fly from New York to San Diego.  I checked a bunch of online travel sources and found fares between $2,257.50 and $2,263. When I checked through Active Advantage, the same flight was $698 - that's almost 70% off.  I booked my flight and my trip went off without a hitch.  This is a great program. Thanks." Scott C. Active Advantage Member While we can't guarantee you'll save $1,500 on your next flight, with Active Advantage you'll get the best discounted rates on flights, hotel rooms, rental cars, sports gear and more. There's a reason why we're the fastest growing member savings program for active people, anywhere.  Don't wait. Catch the Active Advantage right away.    [IMAGE]

If, for any reason, you would prefer not to receive any future e-mail offers from Active.com,
send a blank e-mail to:leave-special-offer-588838X@mail.active.com


fyi
---------------------- Forwarded by Hollis Kimbrough/EWC/Enron on 06/04/2002
09:47 AM ---------------------------

Mark V Walker
06/04/2002 09:17 AM
To: Hollis Kimbrough/EWC/Enron@ENRON
cc:

Subject: Conversation with Gary

These additional issues have been conveyed to Mark Fisher.
---------------------- Forwarded by Mark V Walker/EWC/Enron on 06/04/2002
09:34 AM ---------------------------

Joe Thorpe
05/29/2002 04:16 PM
To: Mark V Walker/EWC/Enron@ENRON
cc:

Subject: Conversation with Gary

---------------------- Forwarded by Joe Thorpe/EWC/Enron on 05/29/2002 07:36
PM ---------------------------

Joe Thorpe
05/29/2002 04:03 PM
To: Kurt Anderson/EWC/Enron@ENRON
cc: Dave Schulgen/EWC/Enron@ENRON, John Nemila/EWC/Enron@ENRON

Subject: Conversation with Gary

Kurt,
 As a follow up on our phone conversation, here are the main points that were
covered in the meeting with Gary. Please let me know if there are any
questions.

Gary was unable to find any information in the TSIA that outlined the
procedure that we currently use to record maintenance time of 4 hours per
month instead of recording the time as it is used. Gary had a conversation
with Mike Kelly whom assured him that this has not been done in the past and
seems to be an incorrect way to report the maintenance time. Gary also stated
that this would lead to error in availability in months were there were 28
days in the month compared to a month with 31 days

Mark Howller & Mike Kelly have also conveyed to Gary that using 10 min data
to calculate estimated power production and availability was an industry
standard. In an attempt to complete the sale of the site, Zilkha has been
asked to provide 10 minute data to their potential customers. Grays questions
is why are we not using the 10 minute data files to calculate our
availability.

Gary also wanted to know how the Mon.db file could be more accurate then the
Minana.db file, if the Mon.db file is taking samples from other files, and
the other files have missing data like the Minana.db does. He also wanted to
know how the Mon.db file could be verified if there happened to be a mistake
as there appears to be on turbine 9 for the month of April. Where is the raw
data proving the numbers in the Mon.db file.

We also discussed the faults on turbine 4 for the month of April. Gary stated
that the faults he outlined in his letter came from the errordev.db file. He
was unaware of the state of the turbine at the time of the faults or if they
contributed to down time or not. I am researching this and will inform you as
soon as I know.

Gary also per warned me of an Email that is planning to go out to Mike
Miller. The letter states that over the past 6 months our turbines have
performed poorly, and we have attempted to mislead them by over stating out
availability. We have also misstated the amount of parts used on site and we
have not explained problems to Zilkha, that we are experiencing with our
turbines. He also states that we have not provided maintenance's to our
turbines in the last 7 months.


Start Date: 4/9/01; HourAhead hour: 11;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001040911.txt

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

  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/9/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_OZZY
  ENGY_TYPE: FIRM


Rhett:
The above is a Canadian counterparty that we are negotiating an ISDA with.
They had some problems with the tax language that we had in our ISDA schedule
(which I have enclosed).  Can I give them your name and number as a contact?
Their tax person's name is Sheri Dunn.
Carol


I received the proposed contract for both compensation credits and fees for
EOTT and it's contractors to be put on Kern Water Banks Master Permit.
Compensation credit will cost $62,000.00 with an additional $16,000.00 to add
EOTT to the Master Permit so we are covered for incidental take at NCL. In
order for the pipeline project to get started the following things must
happen.

1. Give the Kern Water Bank a check for $78,000.00. A contractor constructing
a water line adjacent to EOTT's ROW has cleared the habitat. This should
reduce EOTT's disturbance acreage by a small amount, I suggest we go ahead an
purchase the 24 acres so we can get started, if we have any credits left we
can use them on the removal of the existing Rogas pipeline.

2. We need to make a decision on weather we are going to purchase 15.3 acres
of compensation credit from Area for NCL or try to use the existing credits
we received with the purchase of the plant. I have tried to get in contact
with Jeff Single at the Fish and Game to set up a meeting to work out details
of managing the existing credits but have not been able to speak with him. I
believe the process to enable us to use credits we already own will not be
accomplished in time to use on this project. Scott Jones is working with Mark
Poe at Area on what compensation credits from Area will cost. He originally
was quoted $1,850.00 an acre to Area, $400.00 an acre endowment fee to the
Fish and Game and $100.00 an acre for fencing to the Fish and Game. Scott
talked with Gary Fuller and was informed that Mark had previously quoted
$1500.00 an acre to Area. Scott asked Mark about the lower price, he is
checking into it and will get back to Scott. Once we purchase the
compensation credits from Area, Mark will need to notify Cheryl Harding at
KWB and then she will sell EOTT the KWB compensation credits and add EOTT to
the Master Permit. Since the Fish and Wildlife project approval letter stated
she was to be notified of the purchase of credits form Area a letter of
credit will not be acceptable. We also need to provide the letter of approval
for the project from the Fish and Game to Mark Poe. It is my understanding we
have only received verbal approval and have not gotten a hard copy. Randi
McCormick is going to get the letter.

3. We need to provide insurance certificates to West Kern Water as stated in
the encroachment permit before start of construction. Josie Castrejana is
going to provide those.

4. We still do not have the permits for the road bores at State Hwy-43 and
Interstate-5. The state has the permits ready but they want proof we have ROW
with the land owners on either side of the highways. As soon as KWB gives
back the signed recorded agreements I will provide that to Caltrans and then
they will issue the permits. The other missing permit is for the crossing of
the Kern River by-pass channel. Larry is working on that permit, we should
have the permit by the time we reach the channel with the pipelines.

	Scott Jones
	02/26/2001 02:27 PM

		 To: Kenny Maltby/Bakersfield/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, Edward Attanasio/Remote/Eott@Eott,
John_Shafer@Enron.com, Larry Campbell/ET&S/Enron@Enron, Louis
Soldano/ET&S/Enron@Enron, Matt Hughes/Houston/Eott@Eott, Molly
Sample/Houston/Eott@Eott, Rich Jolly/ET&S/Enron@Enron, Susan
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

Kenny,
I will look in Gary's boxes and see if I can find anything.
Thanks,
                Scott

	Kenny Maltby
	02/26/2001 12:55 PM

		 To: Edward Attanasio/Remote/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry
Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt
Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich
Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

I just spoke with Cheryl Harding about getting the proposed contract for
compensation credits. The NCL credits are for habitat disturbance only not
incidental take. KWB credits which include both are $2000.00 per acre. If we
paid that fee we would be covered but we still would have to buy credits from
NCL. The end result would be EOTT would have 15.3 acres of unused credit in
KWB's bank. Cheryl would like to charge EOTT the difference between NCL
credit  and KWB credits. If NCL credits are $1500.00 per acre we would own
KWB $500.00 per acre for being covered under there Master Permit. Cheryl has
a call into Mark Poe for this information and he has not returned her call. I
spoke with Mark this morning about this issue, he said compensation credit
prices had increased and was not sure what he quoted Gary. Mark will verify
and get back to me. Scott if you can find anything in Gary's files about this
that would be great.

	Edward Attanasio
	02/26/2001 11:36 AM

		 To: Kenny Maltby/Bakersfield/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry
Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt
Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich
Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

 The only reason we are notifying KWB of the purchase of NCL credits is that
the letter from USFW requires us to.

 I don't know what NCL credits are going for these days, but Rick Suderman
might be able to give some insight.  (He was privy to some discussions with
Aera about providing them power for the water system at NCL in exchange for a
reduced price for credits.)  Check with him.

 I believe the insurance certificate is required by the encroachment permit,
is it not?  When we first received that permit, I made the request of EOTT
treasury for the certificate; but now that it is an ETS construction project,
the thinking is that the certificate should come from ETS.  I do not know the
ETS process for getting one.  Perhaps one of the CC-ed ETS folks can provide
some insight as to whether ETS can take care of this, and how.

 Thanks.

	Kenny Maltby
	02/23/01 11:24 AM

		 To: Edward Attanasio/Remote/Eott@Eott
		 cc: Bob Jacobs/Long_Beach/Eott@Eott, John_Shafer@Enron.com, Larry
Campbell/ET&S/Enron@Enron, Louis Soldano/ET&S/Enron@Enron, Matt
Hughes/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Rich
Jolly/ET&S/Enron@Enron, Scott Jones/Bakersfield/Eott@Eott, Susan
Ralph/Houston/Eott@Eott
		 Subject: Re: Rogas Line -- USFW Approval

Cheryl Harding at KWB was reviewing the approval letter from the Fish and
Wildlife Service yesterday and was not ready to provide the proposed contract
for acquisition of compensation acres or agree that a letter of credit  would
suffice for NCL credits. She did not understand why she needed to be notified
of the credits being purchased from NCL. Unfortunately she is not in her
office today.

I placed a call to Mark Poe to find out what compensation credits and
administration fees cost are at NCL.
Do you know what they are Ed? This was something else Gary was doing. He has
not returned my call.

Ed we still need to provide insurance certificates to West Kern Water
District before we can start construction, can you help with that?

	Edward Attanasio
	02/20/2001 05:49 PM

		 To: Kenny Maltby/Bakersfield/Eott@Eott, Scott Jones/Bakersfield/Eott@Eott
		 cc: Matt Hughes/Houston/Eott@Eott, Bob Jacobs/Long_Beach/Eott@Eott, Susan
Ralph/Houston/Eott@Eott, Molly Sample/Houston/Eott@Eott, Larry
Campbell/ET&S/Enron@Enron, Rich Jolly/ET&S/Enron@Enron,
John_Shafer@Enron.com, Louis Soldano/ET&S/Enron@Enron
		 Subject: Rogas Line -- USFW Approval

 Randi McCormick just forwarded to me a letter addressed to EOTT, dated
February 14, 2001  from the US Fish and Wildlife Service approving our
project "for participation in the Kern Water Bank Compensation Bank," and
authorizing the Water Bank "to extend their incidental take authority to you
and your entire project under their Master Permit."  This is, of course, very
good news.

 The letter notes, however, that we still need to purchase compensation
acreage both at North Coles Levee and at the Kern Water Bank.  Specifically,
we must do the following:  (1) contact Cheryl Harding of Kern Water Bank to
acquire 23.1 acres of compensation credits, and to get included in their
Master Permit; and (2) get Cheryl Harding a letter from the Coles Levee
Ecosystem Preserve (Mark Poe of Aera) stating that we have purchased 15.3
acres of credits for North Coles Levee, or that we have set aside that amount
from credits we have in the past purchased.

 While I could make these contacts, I do not believe that would be wise
because -- as Kenny can attest -- our past experience has been that whenever
a lawyer contacts the Water Bank, it prompts them to automatically get their
lawyers involved.  And our experience has been that this only slows things
down -- or worse.

 My suggestion therefore is that one or both of you gentlemen contact Cheryl
as soon as practical and ask her for (1) proposed contract for acquisition of
23.1 acres of compensation credits and (2) perperwork to include EOTT (and
its contractors) in their Master Permit.  She should also be informed that,
while we have not yet purchased the 15.3 acres of NCL credits, we will by the
end of this week have a letter of credit posted as security, as allowed under
our State Take Permit, to cover this amount of acreage.  Ask whether a copy
of this LC will suffice for her purposes, or whether we will need to have the
actual acreage purchased.

 As this would remove a major impediment to construction of the new lines, it
is important that we move on this will all deliberate speed.  Please call me
if you have any questions, or if you would like otherwise to discuss how to
approach this issue.  Thanks a lot.

      --ETA


Start Date: 12/20/01; HourAhead hour: 1;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2001122001.txt


Hi Philip

You can go ahead and start giving feedback to the below.

Thanks,Karen.

 -----Original Message-----
From: 	Love, Phillip M.
Sent:	Monday, July 23, 2001 3:56 PM
To:	Buckley, Karen
Cc:	Gossett, Jeffrey C.
Subject:	Chuck Ames review - trading track

Karen,

Jeff asked that I forward to you the review for Chuck Ames, a member of the trading track.  Please let me know if you need any additional information.  Thanks.
PL
3-7376
 << File: ames review.doc >>


Attached is some background information for today's Corp. Policy Committee
meeting.

I will bring hard copies to the meeting.

Please note:  tabs C and D are not included in the email attachment, but will
be included in the hard copies.


FYI.  How all of this may work with respect to the swaps in these structures
(which I believe to have been signed, but still have not been provided
executed copies) is unclear.

Enron North America Corp.
Mary Cook
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com
----- Forwarded by Mary Cook/HOU/ECT on 11/07/2000 09:57 AM -----

	Joel Ephross@ENRON
	11/06/2000 07:28 PM

		 To: Mary Cook/HOU/ECT@ECT
		 cc: mspradling@velaw.com
		 Subject: Merger of Raptor 2 and 3

FYI.

Mark -- lets give some thought to how this effects both structure and the
ability to give the FAS 125 opinions on the sale of the notes on Raptor 3.

----- Forwarded by Joel Ephross/Corp/Enron on 11/06/2000 07:14 PM -----

	Jordan Mintz@ECT
	11/06/2000 06:52 PM

		 To: Joel Ephross/Corp/Enron@ENRON
		 cc: Ryan Siurek/Corp/Enron@ENRON, AnnMarie Tiller/Corp/Enron@ENRON, Brent
Vasconcellos/Corp/Enron@ENRON, brenda.funk@enron.com@ENRON
		 Subject: Re: Raptor 2 and 3

At AMT's and/or Brent's convenience, I would like to better understand the
tax issue and discuss what steps we can take to mitigate as this proposal has
real momentum.

Thanks.
Jordan

From: Joel Ephross@ENRON on 11/06/2000 05:59 PM
To: Jordan Mintz/HOU/ECT@ECT
cc: Ryan Siurek/Corp/Enron@ENRON, AnnMarie Tiller/Corp/Enron@ENRON, Brent
Vasconcellos/Corp/Enron@ENRON, brenda.funk@enron.com
Subject: Re: Raptor 2 and 3

From discussing this with Brent and AnnMarie, there may some tax issues with
merging these 2 structures. As best I can articulate this, the merger of
Timberwolf into Porcupine would be treated as a reissuance of debt by LJM,
causing them to recognize gain [made all the worse by no associated
distribution of tax]. The TIA executed in connection with Raptor 3 would
require indemnififcation by ENE based on LJM's demand in this case, withuot
the need for the Service to take a position on the issue.

	Jordan Mintz@ECT
	11/06/2000 02:08 PM

		 To: rastin@velaw.com, Joel Ephross/Corp/Enron@ENRON
		 cc: AnnMarie Tiller/Corp/Enron@ENRON
		 Subject: Raptor 2 and 3

At his staff meeting this morning, Andy raised the possibility of some type
of "merger" between Raptor 2 and 3 so as to provide support for the hedge on
TNPC warrants.  My understanding is that Ryan is currently reviewing the
feasibility of this type of arrangement from an accounting perspective.  I
wanted to provide you with a heads-up in the event that this takes on some
urgency in the next few days/weeks.

Please let me know if you have any questions or comments.
Jordan


---------------------- Forwarded by Maria Sandoval/HOU/ECT on 11/15/2000
07:46 AM ---------------------------

	Enron North America Corp.

	From:  Salisha Ramos @ ENRON                           11/15/2000 07:43 AM

To: ARLRDH@aol.com, Betty J Coneway/HOU/ECT@ECT, Amy Rambaran
<sunflowergirl_1977@usa.net> @ ENRON, Mark Ramos <MRamos@stewart.com>,
"Ramos, Regina" <rramos@fna.com> @ ENRON, "Rangel, Jaunita"
<RangelJ@howrey.com>, Brian Harper/NA/Enron@ENRON, Chantelle
Villanueva/HOU/ECT@ECT, Maria Sandoval/HOU/ECT@ECT, Katherine
Reyna/Corp/Enron@Enron
cc:
Subject: FW: A Perfect World

---------------------- Forwarded by Salisha Ramos/NA/Enron on 11/15/2000
07:40 AM ---------------------------

"Magana, Leticia" <lmagana@quantaservices.com> on 11/14/2000 05:16:09 PM
To: "Dominguez, Chasidy" <cdominguez@quantaservices.com>, "Reyna, Roland"
<rreyna@quantaservices.com>, "Payne, Karen" <kpayne@quantaservices.com>,
"Morrison, Ken" <kmorrison@quantaservices.com>, "Wallace, Elizabeth"
<ewallace@quantaservices.com>, "Williams, Janie"
<jwilliams@quantaservices.com>, "Fela Cruz (E-mail)" <fcruz@beazer.com>,
"Jesus Rivera (E-mail)" <chuyr_99@yahoo.com>, "Lety Magana (E-mail)"
<lmagana@simmonsco-intl.com>, "Norma Hernandez (E-mail)"
<norma_hernandez@bakerbotts.com>, "Raquel Rivera (E-mail)"
<rarivera@na.cokecce.com>, "Salisha Ramos (E-mail)" <sramos@enron.com>,
"Xiomara Martinez (E-mail)" <XiomaraM@ITSINC.com>, "Yvette Munoz (E-mail)"
<ymunoz58@go.com>
cc:

Subject: FW: A Perfect World

 - perfect_world.pps


Effective Monday, July 23 the 3WTC security sign-in and out time will be changed to before 5:00 AM and after 7:00 PM.

If you have questions, please see Debra or I.

Thanks.

Mollie

-----Original Message-----
From: Robert Baertlein [mailto:Robert_Baertlein@pgn.com]
Sent: Thursday, July 19, 2001 4:11 PM
To: Davidson, Debra; Gustafson, Mollie
Cc: Joe Goodale; Sam Benitez
Subject: After-Hours Access

Effective Monday morning employees entering or exiting 3WTC building will not need to sign in or out between the hours of
5AM and 7PM (except on weekends and holidays as always).  This applies to the Three Building only.

If you have any questions, please just ask.  I'm at 464-7741.

Thanks,

Bob

Robert Baertlein
Site Security Manager
World Trade Center Security
121 SW Salmon Street
Portland, OR 97204
503.464.7741
Robert_Baertlein@pgn.com


Doug,

I had two very positive meetings this evening  with Tom Martin and Jim Schwieger.  They are looking for a Carthage Hub physical trader.  Tom is planning on talking I think to Lavorato to discuss the details.

It's interesting because with the HPL sale now their physical guys are moving into an environment where they don't have an asset to trade around and have to be flat daily.  Gee, I wonder what that's like?  Given ERCOT liquidity and vol I had to chuckle on the inside (welcome to the real world).

I really appreciate your support during all of this.  Some bosses could consider a situation like this a slight against them and bear out their resentment personally or to others to stymie that person's movement.  You have been nothing but a class act in that regard, and although I indeed would have liked a look at the ST-ERCOT book, I don't hold that against you.  In fact I don't even hold it against management.  It's no different than trading.  Just because someone smart is selling it doesn't mean it won't get bid up and run through them.  I am confident that wherever I end up I will be successful -- no different than any other time in my life.  I don't know another way.  The one time that I had some short-term hardship last year, you and I agree that I was sold too early, and that too will become self-evident.

As I stated yesterday, the end of this week looks to be the time frame where I will make my a final decision.

Thanks for all of you runderstanding,

Larry


You beat me to the punch.  I spoke to Suresh Vasan who briefly worked Enrico and he suggested that I call Marcello.

Thank you for the feedback.

John

-----Original Message-----
From: Kitchen, Louise
Sent: Monday, September 17, 2001 10:29 AM
To: Suarez, John; Presto, Kevin M.
Subject: RE: FW: Enrico Bauli

So the scoop is He is Average.

He recently moved out of Bandwidth 6 weeks ago and back into Continental Power trading - why he is moving again after 6 weeks.  Is it a problem with the business or him?

He worked for Marcello Romano (Head of Bandwidth Trading in Europe) as John knows.  Marcello says he is a solid hard worker who has no edge.  If Marcello were to run UK Gas again he wouldn't take him - as he is not sharp.  So he wouldn't bother to move him across the Atlantic if it costs a lot.

Your call.  Ring Marcello for more information.

Louise

-----Original Message-----
From: Suarez, John
Sent: Saturday, September 15, 2001 6:56 PM
To: Presto, Kevin M.; Kitchen, Louise
Subject: Re: FW: Enrico Bauli

I will follow up on monday morning.

John D. Suarez
Enron Broadband Services
(713) 853-5267
(713) 443-5267 mobile
(877) 597-0646 pager

-----Original Message-----
From: Presto, Kevin M. <Kevin.M.Presto@ENRON.com>
To: Kitchen, Louise <Louise.Kitchen@ENRON.com>
CC: Suarez, John <John_Suarez@ENRON.net>
Sent: Sat Sep 15 18:51:20 2001
Subject: FW: Enrico Bauli

Louise - Do you know this gentleman from your days in London?   His resume looks good and he is interested in moving to Houston and working in East Power.

John Suarez - You are going to need at least one and probably two solid cash/term traders for the SE region.   Talk to Seresh about this guy.

-----Original Message-----
From: Bauli, Enrico
Sent: Thu 9/13/2001 6:42 AM
To: Presto, Kevin M.
Cc:
Subject: Enrico Bauli

Kevin,
thanks for taking a look at this.
I will talk to you in the next days to see if you think I will make enough money for you.

Best Regards,
Enrico
+44 207 783 6560

<<CV194.doc>>


some people are dumb asses

"Bass, Jason" <Jason.Bass2@COMPAQ.com> on 08/24/2000 07:29:26 AM
To: "'Eric.Bass@enron.com'" <Eric.Bass@enron.com>
cc:
Subject: RE: Engram

Whatever, do you think I have any control over Ramiro?

If you do, you are wrong.  He really does not want to trade maybe that is
his way of telling you.

Jason Bass
TSE
Compaq Computer Corporation

 -----Original Message-----
From:  Eric.Bass@enron.com [mailto:Eric.Bass@enron.com]
Sent: Thursday, August 24, 2000 7:28 AM
To: Bass, Jason
Subject: RE: Engram

engram is ramiro's 4th receiver, you don't get a starting rb (the 10th best
i might add) for a backup WR.

the reason i want engram so bad is b/c i have his qb and i think he will
have a pretty good year.

by the way engram was picked the 8th round, dillon in the 2nd.

so don't give me any of that

"Bass, Jason" <Jason.Bass2@COMPAQ.com> on 08/24/2000 07:08:34 AM

To:   "'Eric Bass'" <Eric.Bass@enron.com>
cc:
Subject:  RE: Engram

Ramiro believes Engram is going to have a very good year.  He needs a
Running Back.  I don't think he is being ridiculous.  Engram may be ranked
30th now, but you obviously believe he is a little better than that or you
wouldn't want him so bad.

Jason Bass
TSE
Compaq Computer Corporation

 -----Original Message-----
From:     Eric Bass [mailto:Eric.Bass@enron.com]
Sent:     Thursday, August 24, 2000 7:03 AM
To:  Bass, Jason
Subject:  Re: Engram

your boy is being ridiculous - does he really think he will get the 10th
best rb
for the 30th receiver?
---------------------- Forwarded by Eric Bass/HOU/ECT on 08/24/2000 07:01
AM
---------------------------

LQCOLOMBO@aol.com on 08/23/2000 06:12:52 PM

To:   Eric.Bass@enron.com
cc:
Subject:  Re: Engram

In a message dated 8/23/00 7:23:30 AM Pacific Daylight Time,
Eric.Bass@enron.com writes:

<< What Do you want for Engram? >>

At the very least, Corey Dillon


I have not seen any numbers nor have I  heard from faith.
--------------------------
Sent from my BlackBerry Wireless Handheld (www.BlackBerry.net)


Tammie

They know you are picking up the tickets - you will need a photo id too. You need to be in your seats 30 minutes before the show - get a cocktail to take in - I recommend the 'O'.  You probably should pick up your tickets at an earlier time than the show as the queues are horrible  just before showtime.
  Louise

Thank you for purchasing your tickets through the Bellagio Web site.

This message confirms your purchase, as follows:
Performance: "O" BY CIRQUE DU SOLEIL-MON
Venue: "O" THEATRE AT BELLAGIO
Date:  February 4, 2002
Time:  7:30 PM
Number of tickets: 2
Seat: Level ORCH, Section 202, Row W, Seat 1-2
Your Delivery Choice (see note below): Pick up at the Bellagio Ticket Office
Confirmation number: 96-16376

A printed version of this page, along with a photo ID and the credit card used to make this purchase must be presented to obtain your tickets.

Only the credit card holder may pick up tickets.  Third-party billing will not be accepted.

Tickets may be picked up at the Bellagio Ticket Office at your earliest convenience, but no later than one hour prior to showtime.  Otherwise, your reservation is subject to cancellation.

Ticket office hours are 9am to 11pm Friday through Tuesday; 9am to 9pm Wednesday and Thursday.

Theatre doors open one hour prior to showtime.  Please be seated 30 minutes prior to the performance.  Late arrivals will be seated at the proper

 interval during the performance.

No cameras or recording devices are permitted inside the Theatre.

If you need more information on your purchase, please contact the Bellagio Ticket Office by calling (888) 488-7111.

Reserve a room online at Bellagio:
http://mirage.roomsexpress.com/cgi-bin/ConvHouz.exe?RequestCode=100&VendorFrom=RBG

Explore the world of Cirque du Soleil and take a virtual backstage tour of "O" at http://www.cirquedusoleil.com


Context of today's data request (2 articles):

US FERC To Compile Data On Calif DWR Power Contracts

04/13/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- The U.S. Federal Energy Regulatory Commission issued
an order late Thursday requiring 49 electricity providers to file information
regarding contracts they have entered into with the California Department of
Water Resources.
The information, due by the close of business Monday, is being compiled on
behalf of the House Government Reform Committee, which held hearings in
California this week as part of its oversight investigation into the state's
electricity-supply crisis.
Rep. Dan Burton, R-Ind., the committee's chairman, requested the information
from FERC to determine whether the commission's order Dec. 15 designed to
move the state away from reliance on volatile spot markets for power supplies
and into lower-cost long-term contracts has been effective.
The state water department has been purchasing power for months on behalf of
the state's two financially troubled utilities, spending more than $4 billion
at a rate of $50 million daily.
Edison International unit Southern California Edison (EIX) and PG&E Corp.
unit Pacific Gas & Electric Co. have amassed more than $13 billion in
liabilities, because state-regulated retail rates don't allow them to pass
through high-cost wholesale power purchases.
PG&E filed for Chapter 11 bankruptcy protection on behalf of its utility unit
a week ago. Monday, Edison entered into an agreement to sell the state its
transmission lines in a bid to restore financial solvency.
FERC's order Thursday requests information from 49 power suppliers on both
short- and long-term contracts they may have entered into with the department
since Dec. 15. FERC said it will treat the information as confidential,
unless the supplier states otherwise.
One Democratic official in Washington suggested the House panel is engaged in
a partisan "bashing" effort targeting California Gov. Gray Davis, who has
widely been touted as a presidential prospect for the 2004 election.
Davis spokesman Steven Maviglio supported the official's assessment.
"What a shock! Dan Burton is at it again," Maviglio said facetiously of
Burton, who derived a reputation as a partisan foe of former U.S. President
Bill Clinton with his many investigations into Clinton and his
administration.
"The bottom line is they're aiding and abetting the generators," Maviglio
said of Burton's committee.
The governor's spokesman also questioned whether the information FERC amasses
under seal of confidentiality will remain private once turned over to the
committee.
The committee's offices were closed Friday, so no response was immediately
available.
-By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com

..............................................................................
.......................................................
?

Congressional Committee Members Question California Utility Officials
Michelle Guido

04/12/2001
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

Officials from California's two major utilities and two of its smaller power
generators were in the hot seat in San Jose on Wednesday, fielding questions
from federal lawmakers about their role in the state's power crisis.
On Day 2 of a three-day swing through California, three Republican members of
a U.S. House subcommittee on energy policy and three local Democratic
representatives heard testimony from utility officials and from the chairman
of the Federal Energy Regulatory Commission.
The energy crisis is expected to bring rolling blackouts to California
through the summer months and energy officials warned on Wednesday that the
high prices consumers face here undoubtedly will spill over into neighboring
states if FERC doesn't cap prices now.
But FERC Chairman Curt L. Hebert Jr. reiterated what he said Tuesday at a
western energy summit in Boise: He does not support price caps on electricity
-- in California or any of the western states.
"The energy is going to go where the caps are not, and nine out of 11 western
state governors have said they don't want price caps in their states," Hebert
said. "A cap sends us in the wrong direction."
Instead, he said, by May 1, FERC will unveil a plan to monitor energy prices
and in some cases, might mitigate the price of energy sold on California's
more expensive spot markets. He wouldn't elaborate, but made it clear those
adjustments would not include price caps.
Government Reform Committee Chairman Dan Burton of Indiana opened the hearing
by saying the committee's mission was not to "point fingers."
"We wanted to see if there were ways the federal government and the state
government could work together to get past this crisis."
At one point early in the hearing, demonstrators attempted to address the
lawmakers. They were ushered out of the room by security personnel.
Burton was joined by Republican representatives Doug Ose of Woodland and
Steve Horn of Lakewood. Also participating in the hearings were Democratic
representatives Zoe Lofgren and Michael Honda of San Jose and Barbara Lee of
Oakland.
The Democrats pushed strongly for FERC to consider price caps.
"We need to gain control of this out-of-control market and gain control of
the price gouging," Lofgren said.
Honda concurred: "We believe that FERC has a responsibility and they've even
said that rates are unjust and unreasonable. We need short-term caps."
It was clear that Burton doesn't believe that price caps are the answer. In
fact, on several occasions, he suggested that capping energy prices might
result in even more blackouts as summer approaches.
Lee suggested that some people believe the only way out of the crisis is some
form of re-regulation. But Dede Hapner, vice president of regulatory
relations for PG&E, said she wasn't sure that was the answer.
"We still think a correctly structured market could work. It's certainly
working in other states," Hapner said. "In retrospect, the way the
deregulation market was structured was designed to fail."
Today the hearings move to San Diego, where members will hear from
representatives of generators that have been accused of overcharging
California, including Reliant Energy, Sempra Energy and Williams Energy
Services.

..............................................................................
.......................................................

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


Jason,
	138 MMBtu was cut after the final GISB cycle on ANR Contract 104684.
The cut was the result of Northern Border confirming the incorrect number
during the timely, evening and intraday 1 cycles.

The supply @ Will County for Peoples went from 40,000 to 39,862.  Peoples
Gas reduced its SIQ purchase from Enron North America.  The purchase went
from 125,000 to 124,862.

					Jer

----------------------------------------------------------------
The information transmitted is intended only for the person
or entity to which it is addressed and may contain confidential
and/or privileged material.  Any review, retransmission,
dissemination or other use of, or taking of any action in reliance
upon, this information by persons or entities other than the
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please contact the sender and delete the material from any computer.


----- Forwarded by Jeff Dasovich/NA/Enron on 01/22/2001 04:58 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	01/22/2001 04:50 PM

		 To: Jeff Dasovich/NA/Enron@Enron, tyson@haas.berkeley.edu,
pverleger@compuserve.com
		 cc:
		 Subject: Proposal for California

Dean Tyson:
Attached is the proposal.  Your comments are welcome and appreciated.  I'd be
happy to input any that you might have prior to forwarding to Secretary
Summers.  Phil and I will have a list of potential contacts from the business
community to review in the next couple of hours.  If you need anything, don't
hesitate to contact me.  Perhaps you and Phil and I could touch base later
today or this evening to talk about next steps.  Thanks again for your
efforts.

Best,
Jeff

415.782.7822
pager: 888.916.7184


missing deal for mike s

buy bonneville
july 01
mid c
25 mw
485.00
on peak

missing options for matt

buy pinnacle
call
30.00 prem
325.00 strike
50 mw
may
pv
on peak

buy pinnacle
put
30.00 prem
325.00 strike
50 mw
may
pv
on peak


Whatever you think, maybe eat at 5:30 to 6:00.  I will grill if you want me to.

Tom

 -----Original Message-----
From: 	"Lyne Martin" <lynemartin@msn.com>@ENRON
Sent:	Wednesday, October 17, 2001 3:00 PM
To:	Martin, Thomas A.
Subject:	Fw: Visit

Tom,  What time do you think we should have her come over?  Allison has to be up early on Sunday, so we should probably try to make it early.   Lyne

----- Original Message -----
From: Mary Martin
Sent: Wednesday, October 17, 2001 7:34 AM
To: Lyne Martin
Subject: Re: Visit

Saturday is great at whatever time you say. I'm not a
real late night owl anymore with my early rising
schedule but it's not a work nite, so that's fine.
Work is going pretty well--VERY busy but I'm feeling
more comfortable.
See ya Sat. What should I bring?
Mary
--- Lyne Martin <lynemartin@msn.com> wrote:
> How about this Saturday, the 20th?  What time is
> good for you?
>
> We will probably do our usual for Halloween.  The
> party at our neighborhood clubhouse is from 4 - 6
> and then we will go trick-or-treating after that.
> That would be great if you could join us.  I wish it
> was not on a school (work) night this year.
>
> Is everything going OK at work?  We have not talked
> to you in a while.
>
> Lyne
>
> ----- Original Message -----
> From: Mary Martin
> Sent: Tuesday, October 16, 2001 12:20 PM
> To: Lyne Martin
> Subject: Re: Visit
>
> Sorry I've been so absent. My weekends have pretty
> much just been catching up on my chores. I'd love to
> have dinner with you either Sat.10/20 or 10/27.
>
> I'm house sitting at Barb & Rick's this week
> (281/482-8069) and then at Michael's next week
> (713/868-9776). I'll be at Ken & Mary Ann's on the
> Saturdays.
>
> Also I would like to do Halloween with ya'll, if
> you're gonna do your usual trick or treating. Maybe
> I'll catch up with Tom downtown and take the HOV
> home
> with him that day.
>
> See ya soon!
>
> Love,
>
> Mary
> --- Lyne Martin <lynemartin@msn.com> wrote:
> > Hi Aunt Mary!  This is Matthew.  I have been
> wanting
> > to come see you.  I have been talking about you
> for
> > the last 2 days and everytime we go somewhere, I
> > tell my Mom, "Let's go see Aunt Mary" now.  I hope
> > to see you soon.
> >
> > Love,  Matthew
> >
> >
> > Mary - We were wondering if you would like to come
> > over for dinner sometime in the next few weekends.
> > LyneGet more from the Web.  FREE MSN Explorer
> > download : http://explorer.msn.com
> >
>
>
> __________________________________________________
> Do You Yahoo!?
> Make a great connection at Yahoo! Personals.
> http://personals.yahoo.comGet more from the Web.
> FREE MSN Explorer download : http://explorer.msn.com
>
__________________________________________________
Do You Yahoo!?
Make a great connection at Yahoo! Personals.
http://personals.yahoo.com


ISDA PRESS REPORT, THURSDAY, SEPTEMBER 7, 2000

* Report Says Banks, Brokerages Need to Advance into Investment - The
Korea Herald, 9/7/00
* OCC Official: Still Hopeful For Derivatives Reform - Capital Markets
Report, 9/6/00
* UK ROAD TO EURO: Little Evidence of Euro-Creep in UK - Dow Jones
International News, 9/7/00
* Banks' Trading Revenue Remains High, Quarterly OCC Derivatives
Report Shows - BNA, 9/7/00

The Korea Herald, 9/7/00
Report Says Banks, Brokerages Need to Advance into Investment

For the survival of the domestic financial industry in global competition,
banks and securities companies need to be pushed to advance into investment
banking, the Korea Securities Research Institute asserted yesterday.

In a seminar on stock market development, the institute presented a paper
calling for expanded participation in investment banking by domestic
financial institutions.

"The global financial industry is heading for a single market as evidenced
by the growing synchronization of financial markets around the world," the
report said. "Since the global financial industry is increasingly reshaped
by mergers and acquisitions and business crossovers, domestic financial
institutions should pursue investment banking." To promote investment
banking in Korea, the institute said measures should be taken to build
reliable databases of economic and financial statistics, foster experts,
encourage brokerages to develop their underwriting capabilities, expand the
concept of securities and encourage business crossovers among financial
institutions.

As promising areas of investment banking, the institute cited asset
management, mergers and acquisitions, asset assessment, trading of
over-the-counter products and derivatives, and securities designing.

According to the institute, the global financial market is experiencing a
transition from direct funding through banks to direct funding through stock
exchanges. This sea change is demolishing the distinction between banks and
securities firms.

Furthermore, it said, capital liberalization in a growing number of
countries is accelerating the integration of national capital markets into a
single global market.

"The pursuit of large size and business crossovers will intensify in the
future. At the same time, progress in financial engineering and information
technology will give rise to more complicated financial products, which will
further liven up indirect investment instruments," it said.

The institute said foreign financial institutions' inroads into the domestic
market would increase, helping domestic institutions improve their business
practices and financial technology.

Capital Markets Report, 9/6/00
OCC Official: Still Hopeful For Derivatives Reform
By Jonathan Nicholson

WASHINGTON -(Dow Jones)- A top banking watchdog on Wednesday held out hope
that laws dealing with derivatives transactions and bankruptcies may yet be
updated this year.

"If nothing happened, it would not be disastrous. There's not a lot of time
left on the calendar," said Mike Brosnan, deputy comptroller for risk
evaluation for the Office of the Comptroller of the Currency.

"It would certainly be a better world if the bankruptcy and insolvency
provisions were finalized. There's a chance that could happen," he said.

Brosnan spoke to reporters during the agency's quarterly briefing on bank
derivatives trading revenues. The second session of the 106th Congress is
expected to adjourn by early October as lawmakers make their way home for
the fall campaign.

Brosnan said he hoped they could get to the provisions in a pending
bankruptcy reform bill dealing with derivatives contracts. The White House
and Congressional Republicans have been bogged down in negotiations over
bankruptcy for some time now. The issues of contention, however, have
revolved around consumer protection.

Brosnan said he hoped the comparatively non-controversial sections regarding
derivatives could be split from the bill and enacted separately if the
bankruptcy bill fails to show progress.

"It is my hope that that would occur and I think it would make for a safer
and sounder banking system," Brosnan said.

More sweeping reform, in the shape of a reauthorization and updating of the
Commodities Exchange Act, is also pending in Congress. The CEA includes the
structural framework for derivatives trading and regulation in the U.S. and
modernizing it has been a priority for some years among regulators and trade
groups.

However, differing versions of CEA modernization have been approved by three
committees in the U.S. House. Such divergent approaches are seen by many as
limiting the chances for passage.

"To the extent you could get one or both of those finalized in an agreeable
format, it would add certainty to U.S. banks," Brosnan said. By increasing
the legal certainty about the enforceability of derivatives contracts, it
would lower costs and keep business from moving overseas, he said.

Dow Jones International News, 9/7/00
UK ROAD TO EURO: Little Evidence of Euro-Creep in UK
By David Cottle

LONDON -(Dow Jones)- When high-profile industrial giants Toyota and Unilever
asked U.K. suppliers to price their goods in euros, many thought more
multinationals in the U.K. would follow suit, possibly making the euro the
effective business currency of the U.K. irrespective of a decision to join.

But so-called 'euro-creep', where the euro becomes the de facto currency for
British companies despite the U.K. retaining the pound, has so far failed to
materialize. U.K.-based businesses are still overwhelmingly loyal to
sterling despite big fluctuations against the euro.

"I think there is disappointment in official, pro-Europe circles that there
hasn't been as much 'euro-creep' as hoped for," said Stephen Lewis, chief
economist at Monument Derivatives in London.

With Britain still undecided over whether it should adopt the euro, many in
the pro-euro lobby say the commercial reality faced by many companies
dealing with other European countries will mean they will end up having to
use the single currency, like it or not.

The issue gathered extra intensity recently when the British press
highlighted the issue.

Euro-creep Overstated

But many now say 'euro-creep' has been overstated.

"The fact is that euro-creep is hardly a factor at the moment," said David
Page, U.K. economist at Investec Research.

What is more, some analysts say that the euro has been almost as invisible
in many euro-zone countries, where local currencies continue to hold sway,
and will remain so at least until euro notes and coins come into circulation
in 2002.

There is an obvious temptation for companies with large operations in the
U.K. and significant sales in Europe to ask U.K. suppliers to invoice in
euros. This way they pass on the exchange risk down the supply chain.

"Most of Toyota's U.K. production goes to Europe," said an analyst at
consultants Business Strategies, "so they'll lose significantly in terms of
the exchange rate and its volatility should their suppliers price in
sterling."

But Business Strategies reckon that these companies are reacting to a strong
pound rather than displaying an undying loyalty for the single currency and
that the weakness of the euro is a factor in its unpopularity as a trading
currency.

Weak Euro Hobbles Acceptance

Others share this view.

"With the euro at current levels it would be odd to see a big push towards
it's use by European businesses," said Klaus Baader, senior international
economist at Lehman Brothers in London.

Of the companies that are using the euro in the U.K., Toyota says it will
only demand euro pricing from some of its new supply contracts.

"We have only asked a few of our new suppliers to tender in euros, and we
have no plans at all to extend that base," said Richard Ayres, a spokesman
for Toyota in the U.K.

Unilever, meanwhile, has invited all its British contractors to tender in
euros, but a spokesman for the company said it wasn't compulsory for them to
do so, nor were there any plans to make it so.

"We now obviously produce all our (financial) reports in euros and this is
just an extension of that," he added.

BNA, 9/7/00
Banks' Trading Revenue Remains High, Quarterly OCC Derivatives Report Shows
By Adam Wasch

Although trading revenue was down from the record $3.84 billion recorded in
the
first quarter of 2000, U.S. commercial banks earned $3.03 billion from
trading
activities in the three months ending June 30, the Office of the Comptroller
of
the Currency reported Sept. 6.

The second quarter of 2000 represented only the third time the banking
industry has earned more than $3 billion from trading activities in a single
quarter. The first time it happened was in the first quarter of 1999, when
commercial banks earned $3.6 billion from trading, according to the OCC,
which released its quarterly Bank Derivatives Report. It has been six and a
half years since the seven banks most active in trading have lost revenue
from trading.

Trading revenue is earned from cash instruments and off-balance sheet
derivative instruments. A derivative is a financial instrument with a value
based on the performance of an underlying asset, interest rate, foreign
exchange rate, or other indexes. The OCC's quarterly report is based on
quarterly call report information provided by domestic commercial banks.

More Banks Using Derivatives

OCC also reported that the number of commercial banks holding derivatives
increased by 27 to 416. The notional amount of derivatives reported by
commercial banks grew 4.5 percent to a record high $39.3 trillion in the
second quarter. Most derivatives trading activity (96 percent), the OCC
explained, is used by banks in their capacity as a dealer to service bank
customers. The remainder is used to manage their own interest rate and other
financial risk positions.

"Contract volumes showed strong growth as bank customers managed risk
positions in an environment characterized by rising interest rates and
volatile and more uncertain market positions," said Mike Brosnan, OCC Deputy
Comptroller for Risk Evaluation, told reporters at a press briefing.

The average credit exposure from derivatives at the top seven trading banks
fell to 247 percent of risk-based capital, OCC said, although Brosnan still
called this a "huge" percentage. Credit exposure has declined since reaching
a record high of 324 percent of risk-based capital in the fourth quarter of
1998. "There were no losses to speak of in the second quarter [of 2000],"
Brosnan said. "The absence of past-dues and charge-offs [produced] a credit
quality of over-the-counter derivatives that is noticeably better" than that
seen in most commercial and industrial loans portfolios, he said.

Most banks use derivatives to hedge credit risk, Brosnan said. The current
economic climate, with its relatively large global swings in interest rates,
gives banks added incentive to use derivatives, he said. Even so, less than
5 percent of banks currently use derivatives. But those that do are heavily
scrutinized because of the highly sophisticated nature of derivatives and
their potential to cost banks billions if deals go awry. "We watch banks'
derivative activity to a disproportionate degree," Brosnan said.

Derivative Bills Pending in Congress

Three separate but similar bills are pending in Congress that would offer
more predictability for derivatives market participants if their transaction
counterparties fail.

The bipartisan provisions, which the OCC supports, provide derivatives
greater legal definition. The relevant language appears in pending
bankruptcy reform legislation, legislation to reform the Commodities
Exchange Act, and in a stand-alone bill (H.R. 1161) introduced by House
Banking Committee Chairman James A. Leach (R-Iowa) and passed by the banking
committee July 27. Such legislation would "add certainty" to the U.S.
derivatives market, Brosnan said, and prevent derivatives trading activity
from migrating to other countries that better legally define derivatives.
"If nothing happens [in Congress], it would not be a disaster, but I hope it
would occur," he said.

Report Confirms Trends

The notional volume of foreign exchange derivatives leveled off in the
second quarter at $6.5 trillion. Continuing a trend, interest rate
derivatives rose to a record $31.4 trillion. Since 1997, when banks first
began reporting data on credit derivatives, the notional volume of these
contracts has increased from $55 billion to $362 billion during the most
recent quarter, according to OCC.

Also, there has been a "pronounced and continued shift" in the kind of
derivatives contracts banks use. Brosnan noted that as the volume of swap
contracts has nearly doubled to $21 trillion since the second half of 1998,
the volume of futures and forwards ($10.3 trillion), and options ($7.7
trillion) has all but leveled off during the same period. Brosnan said that
this was due primarily to bank customers' preference for over-the-counter
derivatives contracts such as swaps, which can be tailored to meet a
customer's specific risk management needs.

Other trends include the increasing popularity of one-to-five year equity
contracts, which rose 27 percent in notional amounts. Equity contracts of
less than a year have also become more popular, OCC said.

The OCC's latest quarterly report is available on the agency's Web site at
http://www.occ.treas.gov/ftp/deriv/dq200.pdf.

End of ISDA Press Report for Thursday, September 7, 2000.

THE ISDA PRESS REPORT IS PREPARED FOR THE LIMITED USE OF ISDA STAFF, ISDA'S
BOARD OF DIRECTORS AND SPECIFIED CONSULTANTS TO ISDA.  THIS PRESS REPORT IS
NOT FOR DISTRIBUTION (EITHER WITHIN OR WITHOUT AN ORGANIZATION), AND ISDA IS
NOT RESPONSIBLE FOR ANY USE TO WHICH THESE MATERIALS MAY BE PUT.


US Dam Rescues Calif Grid, But Lawmaker Demands More Pwr

09/25/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)
WASHINGTON -(Dow Jones)- California averted a blackout last week with some
help from the federal government.
The U.S. Bureau of Reclamation opened the flowgates at the massive Glen
Canyon dam in Arizona, providing 300 megawatts of power for four hours in the
afternoon of Sept. 18, according to federal officials.
The event illustrated how dependent the Western power grid is on electricity
from U.S. government-owned dams, and highlighted the increasing political
tensions that arise from the use of these assets as competition shakes up the
nation's $215 billion power sector.
At a House Government Reform Committee hearing last Thursday, Rep. Doug Ose,
R-Calif., demanded to know why, if the Bureau of Reclamation was able to help
the state avert a grid emergency, it didn't make electricity available
throughout the summer months when San Diego consumers paid twice as much for
electricity as they did in 1999.
"This administration sacrificed the interests of consumers in San Diego," Ose
declared.
But a Bureau of Reclamation spokesman said last week's emergency marked the
first time the California grid operator had asked for help.
The Interior Department agency was prepared to act further by making power
available from other dams later in the week, but the state's grid operator
didn't ask for power, said the spokesman, Barry Worth.
Under a mandate from the Interior Department to restore riverbank beaches
deemed critical for endangered wildlife, Glen Canyon has been operated for
the last few years in a way that reduces net power production from the dam by
about 900 megawatts.
The doubling of flows last Monday was within the restricted range required by
the Interior Department, Worth said.
But he noted the agency was reluctant to do so out of concern it would
interfere with a summer-long test of the impact on endangered species from
drought-simulated low flows.
"The amount we increased was of concern to us initially because of our test,
but we determined the amount was analogous to monsoonal thunderstorms we
would normally get this time of year," Worth said.
"We wanted to make sure we were protecting our studies," he said.
Nevertheless, Worth noted that power from Glen Canyon doesn't normally flow
to California to begin with. And he emphasized that transmission constraints
don't make the state a natural destination for the dam's power.
Given the configuration of the Western grid, it is easier for California to
get its power from other sources in the region, such as Hoover Dam, Worth
said.
"We responded, but there's a limitation to how much we can (help) to begin
with," he said.
Still, if California asks, the agency is prepared to help by providing power
again, Worth said.

By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com


Ok.  I'll follow up.

The insanity continues.  I finally called Lee Johnson at S&S, who fortunately
had called me, and asked him if he knew if Kent was around, as I hadn't heard
from him.  He is going to get in touch with Kent for me.

I'm expediting Paul Pipitone re the ABB facility agreement, but haven't heard
back from him yet.

Hope your trip is going well.

Kay

From: Sheila Tweed@ECT on 10/23/2000 05:55 PM
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: CSFB Financing - NA power projects

Yes please.  I do not know of a single project LLC that is ready to commit to
Phase II Turbo Park.  So I suggest we send them corporate docs from
Pleasanton Local Reliability  Facility LLC and tell them that all of our
LLC's are basically the same.


IntercontinentalExchange
                                                                                Firm Power Price Bulletin
                                                                                For Power Delivered on Tuesday, October   23, 2001
                                                                                (Trade Date of Monday, October   22, 2001)
Click here to access index history .
                                                                                * volume represents sell-side only *

Hub	High	Low	Wtd Avg Index	Change ($)	Vol (Mwh)
Cinergy	         $23.00	         $19.25	         $20.50	-    .34	          40,800
Comed	         $20.00	         $18.75	         $18.91	-    .87	           8,800
Entergy	        $210.00	         $20.00	         $29.93	+   9.29	          19,200
Nepool	         $38.00	         $37.25	         $37.50	-    .87	          11,200
Palo Verde	         $27.75	         $25.50	         $27.09	-    .28	          13,200
PJM-West	         $25.00	         $24.00	         $24.21	-   1.10	          40,800
SP-15	         $27.75	         $27.00	         $27.35	+    .12	          14,400
TVA	         $21.50	         $20.25	         $20.63	-    .83	           7,200

                                                                                Includes all trades done from 6 AM to 11 AM Central Prevailing Time on the trade date specified for financially firm power delivered during the on-peak hours (6 AM - 10 PM CPT for Eastern hubs / 6 AM - 10 PM Pacific Prevailing Time for Western hubs) on the delivery date(s) specified.
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                                                                                ?Copyright IntercontinentalExchange, Inc. 2001, All Rights Reserved.


Here is Merrill Lynch's latest research report.

 <<Enron Nov 20.pdf>>

If you have any questions or concerns, please give me a call.

Brian V. Petrauskas
Johansen/Petrauskas Group
Merrill Lynch
281.775.8844

_______________________________________
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to us or others. Further, do not send time-sensitive, action-oriented
messages, such as transaction orders, fund transfer instructions, or check
stop payments, as it is our policy not to accept such items electronically.

 - Enron Nov 20.pdf


Tana:  Jason still does not have access to the Financial Trading dababase.
Can you facilitate please?  thanks.  Sara


Team,

I've started on this week's action items and have built some pro-forma models
for 1996 financial statements that should help in writing the memo.  Feel free
to look at what I've done.  As you can see the memo still needs to be written
and I didn't complete the final 2 questions.

Let's talk.

**********************************************
Mark D. Guinney, CFA
Consultant
Watson Wyatt Investment Consulting
345 California Street, Ste. 1400
San Francisco, CA  94104
(415) 733-4487 ph.
(415) 733-4190 fax

____________________Reply Separator____________________
Subject:    Re: E234 Course Materials
Author: Jeff.Dasovich@enron.com
Date:       01/24/2001 5:15 PM

thanks very much.
 - Clarkson.xlw
 - CaseQuestions.doc


I am like totally over being wierd about you talking about Dave and have been
for a while but, I think I know what you mean


Mr. Skilling will be travelling and unable to attend on May 24.

Thanks,
Joannie Williamson
713-345-7774

Debbie Long <dlong@houstontech.org> on 05/16/2001 05:30:21 PM
To:	Administrator <Administrator@houstontech.org>
cc:

Subject:	Houston Mentor Network Breakfast 5.24.01

Dear Mentors:

 The Houston Technology Center would like to invite you to attend the
Houston Mentor Network Breakfast during which we will introduce a selection
of our newest companies. After the introductions, the Mentors and the
companies will be allowed time to network and to find appropriate "mentor
connections."

The breakfast will be held on Thursday, May 24, at the Briar Club, 2603
Timmons from 7:00 a.m. - 9:00 a.m.  The cost of the event is $15.  No cash
will be accepted at the door.  Please register online at:
http://www.houstontech.org/calendar/caldetail.asp?ID=118&DATE=5/24/2001

AGENDA

7:00-7:30                   Registration

7:30-8:30                   Breakfast/Introduction to Candidate Companies

8:30-9:00                   Wrap-up/Networking

I look forward to a great turnout!

Sincerely,

Massimo Marolo
Development Manager
Houston Technology Center
mmarolo@houstontech.org


(See attached file: BAProjects36.doc)

 - BAProjects36.doc


Gregg,

Sorry, I thought Suzanne had confirmed it. We are on for 330.  I can call you.

Kay

From: Gregg Penman on 11/01/2000 09:49 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: conference call

is there a call in # for the 3:30 or will you be initiating it?

Gregg