FYI -- Here is the Arthur Anderson question that an employee asked recently -- it was on eSpeak.

Vance

Mr. Lay- Enron has been aggressive in the use of SPV's collateralizing future cash flows for the sake of present earnings. I couldn't help but notice our auditor, Arthur Andersen of Houston, recently admitted guilt and paid the largest fine ever for criminal falsifications related to SPV's on behalf of another large Houston corporation. You are a man of integrity, so my "question" is a chance for you to so reassure us we have no such problems here at Enron.

KEN.LAY REPLIES
To begin with, I can assure you that I or the Board of Directors, would not approve the use of any SPVs or other types of financial vehicles unless we were convinced both by all of our internal officers as well as our external auditor and counsel, that they were legal and totally appropriate. That is the standard that we have used for as long as I have been with Enron, and we will continue to use. In many cases, not only has the local Arthur Anderson office approved these vehicles, but they have also been approved at Arthur Anderson's headquarter office from some of the world's leading experts on these types of financing.

Now having said this, in the case of LJM2, which was a related party transaction, of which virtually every Fortune 500 has such transactions, because there was significant static raised by that within the financial markets, that was restructured so that there is no related party involved at the current time.

In addition to both approval internally and externally, certainly I or the Board also apply the concept of what appears to be right, using a great deal of experience and common sense. And I believe overall, this has led to both creative transactions, which are beneficial for the company and its shareholders, as well as an abundance of safeguards that what is done is totally appropriate and acceptable.


Kim:

When you have a minute, please call.  Thanks.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Find attached a spreadsheet containing ECAR backcast load data and actual and normal temps for calendar 2001 year-to-date.  The temps are from Cincinnati, Cleveland, Columbus, Detroit, and Pittsburgh.

Let me know if you have any questions.


The following reports have been waiting for your approval for more than 4 days.  Please review.

Owner: James W Reitmeyer
Report Name: JReitmeyer 10/24/01
Days In Mgr. Queue: 5


We have been having some difficulty locating OATI invoices, and it may be that they are being routed incorrectly.

If you receive an OATI monthly invoice, please forward it to me ASAP so that we can submit it for payment.

Thanks,
Kathy


Steve,
I wasn't aware I was asking for anything additional.  Will asked us to test this application and it did not work (neither the routing feature nor the confirmation).
We discussed possible solutions and tweaking of his prototype.  In addition to possible ideas to get his application going, I reminded him that this is to replace an existing workspace (excel) that has many more features (such as the insert keys, font colors, shading, etc).  If the goal was to replace our excel workspace, this would be a good start.  Since "buildroute" has been, and will be, a fundamental part of East Scheduling we agreed that the new version should save in the same manner it does now, nothing more.

Thanks,
Corry

 -----Original Message-----
From: 	Nat, Steve
Sent:	Monday, June 25, 2001 2:32 PM
To:	Semperger, Cara
Cc:	Bentley, Corry; Smith, Will; Luu, Duong
Subject:	RE: Power Trading Systems Weekly Update

Cara, Yes, primarily due to some additional requests that Corry has surfaced during user acceptance testing.  (I copied Corry on this in case you want to discuss with him)  He is looking for a number of excel type features that are not part of Will's grid object.  Will is doing some additional research for me on this...

Give me a call if you want to discuss.  As always, thanks for your interest and engagement.

Steve
 -----Original Message-----
From: 	Semperger, Cara
Sent:	Monday, June 25, 2001 12:03 PM
To:	Nat, Steve
Subject:	RE: Power Trading Systems Weekly Update

So our target date has been moved to 7/15?

 -----Original Message-----
From: 	Nat, Steve
Sent:	Sunday, June 24, 2001 10:01 AM
To:	Vinson, Donald Wayne; Theriot, Kim S.; Allen, Thresa A.; Reeves, Leslie; White, Stacey; Belden, Tim; O'Neil, Murray P.; Richter, Jeff; Hedstrom, Peggy; Dupuy, Mark; Mckeel, Richard; Murphy, Melissa Ann; Presto, Kevin M.; Will, Lloyd; Day, Smith L.; Bentley, Corry; Brackett, Debbie R.; Coulter, Kayne; Gilbert, Scotty; Zufferli, John; Dunton, Heather; Arora, Harry; Evans, Casey; Semperger, Cara; Postlethwaite, John
Cc:	Burchfield, Richard; Stock, Stephen; Perlman, Beth; Marryott, Michael; Poston, David; Gupta, Sanjay; Luu, Duong; Kumar, Madhup; Nommensen, Dave
Subject:	Power Trading Systems Weekly Update

Week Ending 6/22/01:

 << File: Scorecard 062201.doc >>

Glad to discuss...

Steve


Philip,

Thanks. You are the best.

Vince

From: Phillip Randle/ENRON@enronXgate on 05/02/2001 07:28 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: RE: Installation of new programs

I gave you local admin rights on your laptop yesterday. What you have to do
is to log into the laptop using the local
Machine account. The id and the password is the same as your Corp login now.
The password on the local account will
Never change. If you have a minute today I will show you how. Let me know a
time.

Phillip Randle
Desktop Support Specialist x39665

 -----Original Message-----
From:  Kaminski, Vince
Sent: Tuesday, May 01, 2001 5:17 PM
To: Randle, Phillip C.
Cc: Kaminski, Vince
Subject: Installation of new programs

Phillip,

How can I install new programs on my laptop, without
the administrator's privileges?

One example: when I travel I use AOL to get access to my mail
and to communicate with the office. Windows 2000 does not allow
me to install it.

 Also, I have my private statistical software
I often use when I work at night during business trips.
I would like to load it as well.

Vince


I thought we had to go?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Thursday, January 24, 2002 9:26 AM
To:	Rybarski, Amanda
Subject:	RE:

i dont know are you?

 -----Original Message-----
From: 	Rybarski, Amanda
Sent:	Thursday, January 24, 2002 9:11 AM
To:	Maggi, Mike
Subject:

Are you going to that lame ass orientation today at the Houstonian?


Please be advised that Samantha Boyd will arrive at the office, around 9:30
a.m.  She is attending a Parent/Teacher conference this morning.  Should you
need assistance, feel free to contact me at 5-3317.  Thank you.  Keegan
Farrell


Gordon:

Have you received a W8BEN tax form and/or a legal opinion from Nemak?  They are supposed to deliver these to us in connection with the signed ISDA Master Agreement, but I haven't seen them and before I contact them, I thought I'd check just to make sure you didn't receive them.

Thanks!

Marie


Seems to me that L/C's are the way to go then, rather than asking for cash or
another asset as collateral.  (Another option would be to mix and match -
taking cash up to $10 mil. and L/C's beyond that.)   Lenders frequently set
up the facilities available to the borrower this way so they keep control
over how much "debt" is supported by the asset base while still giving the
borrower some flexibility.  As you can imagine, most other extenders of
credit are willing to take the bank's L/C in lieu of a lien on a hard asset.

	Russell Diamond
	01/08/2001 06:42 PM

		 To: Mark Taylor/HOU/ECT@ECT
		 cc:
		 Subject: Re: ISDA Collateral Question

Mark,

Letters of Credit are available under this Credit Facility.

Please let me know your thoughts and if you need any additional information
as the originator in EES is calling for me.

Thanks
Russell.

From: Mark Taylor on 01/08/2001 05:39 PM
To: Russell Diamond/HOU/ECT@ECT
cc:
Subject: Re: ISDA Collateral Question

Any chance this language came from a credit facility that provides for the
issuance of letters of credit?

	Russell Diamond
	01/05/2001 05:20 PM

		 To: Mark Taylor/HOU/ECT@ECT
		 cc: Tana Jones/HOU/ECT@ECT, Tanya Rohauer/HOU/ECT@ECT
		 Subject: ISDA Collateral Question

Mark,

I copied a section of a counterparty's Bank Credit Agreement relating to
certain
negative pledges.  The counteparty is IMC Global whom we have some financial
transactions with (actuall their sub IMC-Canada) at ECC, and now an EES
person is looking to
enter into a long term EES transaction.  We sent them a draft ISDA for future
transactions
out of ECC and we are now being told by the EES person that if a Credit
Support Annex (CSA)
is required in this ISDA it will kill her deal.  She has stated that they are
not able
to fulfil the obligations of the CSA because of the covenants tied to their
Credit
support agreement.  As highlighted in red below, it seems that they cannot
have any liens that
secure derivative obligations, although cash is acceptable up to $10
million.  Can you
please clarify if collateral as it is stated in the ISDA is considered a
lien, and if this type
collateral would be a breach of their credit agreement.  If this is a breach
can you suggest
other methods that we might use so the CSA would be acceptable.

Thanks
Russell

Negative Pledge.   Neither  any Borrower nor  any  Subsidiary  of  any
Borrower  will create, assume or suffer to exist any Lien on any  asset
now owned or hereafter acquired by it, except:

Liens  existing on the date of this Agreement securing Debt outstanding
on  the date of this Agreement in an aggregate principal or face amount
not exceeding $135,000,000;

any  Lien  existing on any asset of any Person at the time such  Person
becomes a Subsidiary of a Borrower and not created in contemplation  of
such event;

any Lien on any asset securing Debt incurred or assumed for the purpose
of  financing  all or any part of the cost of acquiring or constructing
such asset, provided that such Lien attaches to such asset concurrently
with  or  within  90  days  after  the  acquisition  or  completion  of
construction thereof;

any Lien on any asset of any Person existing at the time such Person is
merged  or  consolidated with or into a Borrower or a Subsidiary  of  a
Borrower and not created in contemplation of such event;

any  Lien existing on any asset prior to the acquisition thereof  by  a
Borrower or a Subsidiary of a Borrower and not created in contemplation
of such acquisition;

any  Lien  arising  out  of  the  refinancing,  extension,  renewal  or
refunding  of  any Debt secured by any Lien permitted  by  any  of  the
foregoing clauses of this Section, provided that the proceeds  of  such
Debt  are  used  solely for the foregoing purpose and to pay  financing
costs and such Debt is not secured by any additional assets;

Liens  arising in the ordinary course of its business which (i) do  not
secure  Debt  or  Derivatives  Obligations,  (ii)  do  not  secure  any
obligation in an amount exceeding $100,000,000 and (iii) do not in  the
aggregate materially detract from the value of its assets or materially
impair the use thereof in the operation of its business;

Liens  on  cash and cash equivalents securing Derivatives  Obligations,
provided that the aggregate amount of cash and cash equivalents subject
to such Liens may at no time exceed $10,000,000; and

Liens  not otherwise permitted by the foregoing clauses of this Section
securing  Debt in an aggregate principal or face amount, together  with
all  other Debt secured by Liens permitted under this Section  5.09(i),
not  to  exceed  an  amount  equal to 10%  of  Consolidated  Net  Worth
(calculated  as  of  the last day of the fiscal quarter  most  recently
ended  on  or prior to the date of the most recent incurrence  of  such
Debt).


In order to account for the same day change at Katy, please schedule the
following deals for 7/24/00 only:

At Exxon Katy (Mtr 4132):

 Allocate -0- to deal 284599
 Allocated 4,500 to deal 339604

At Lone Star Katy (Mtr 67):
 Allocate 5,000 to deal 341801(new deal)
 Allocate 5,500 to deal 341808 (new deal)

Please remember that EOL deals are firm.  This means that we can't change the
location, volume, or price on these deals.  If questions arise around an EOL
deal, please make sure that your audience (traders, myself, etc.) knows that
your are discussing an EOL trade.

Let me know if you have any questions.

D


Enclosed please find the Spring, 2002 final exam schedule.  I have
allocated time, dates, and space for the core courses.  If you need to
schedule a final for your elective course, please contact Linda Werckle
(werckle@rice.edu or 348-3463).  Remember, space goes quickly during the
exam period so if you have specific needs, please contact Linda as soon as
possible.

Thank you! - Pam (713-348-6223)
 - 2002 spring exam schedule.doc


I have changed the supervisor from Lynn to you on Jacob Conklin and Cynthia Rivers in PEP.  I will submit the appropriate changes in SAP.

Thanks,

Fran

Miranda:  Please change supervisor on Jacob Conklin and Cynthia Rivers to Sheila Nacey.  Please change the org unit to correspond to Sheila.thx

 -----Original Message-----
From: 	Nacey, Sheila
Sent:	Tuesday, November 20, 2001 5:01 PM
To:	Fagan, Fran
Subject:	PEP system
Importance:	High

Fran,  Two of my team members are not listed under me for the review process in PEP;  Jacob Conklin & Cynthia Rivers.  Would you please check this out.  I assume they are still under Lynn.  Thks! Sheila


[IMAGE]		[IMAGE]
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	        [IMAGE]  [IMAGE]
	 Get a $25  bonus   for your $25  Deposit  Get a $50  bonus   for your $50  Deposit  Get a $75  bonus   for your $75  Deposit  Get a $100  bonus   for your $100  Deposit      [IMAGE]  [IMAGE]   Use your FIREPAY CARD- the safest way to  make your first deposit
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I think we need for this to be reciprocal -although I agree the errors are
likely to be only our own.

Therefore, I suggest the following:

(f) Notwithstanding any provision of this Agreement, any master agreement or
any GTC to the contrary, any Transaction resulting from a Gross Error may  be
voided and the parties agree that any such voided Transaction shall be of no
force or effect.  &Gross Error8 shall mean the posting of any price that is
[5]% or more above or below then prevailing market prices, which difference
is verified by the average of quotations from three or more participants in
the relevant market for Transactions which would be conducted at the time of
the Transaction containing the Gross Error. For a Transaction to qualify as
subject to Gross Error, one party must communicate by facsimile to the other
the claimed existence of Gross Error within [3] hours of the Transaction
occurring.

What do you think?

Dave

From: Mark Taylor@ECT on 08/14/2000 05:27 PM
To: David Forster/Corp/Enron@Enron
cc:

Subject: Gross Error language

(f) Notwithstanding any provision of this Agreement, any master agreement or
any GTC to the contrary, any Transaction resulting from a Gross Error by
Enron shall be voided at Enron,s election and Counterparty agrees that any
such voided Transaction shall be of no force or effect.  &Gross Error8 shall
mean the posting of any price that is [30]% or more above or below then
prevailing market prices, which difference is verified by the average of
quotations from three or more participants in the relevant market.


Any time you'd like to get here.  I'll be happy to set you up with a strong
schedule.
I'm glad you finally met Per.  He's been a little busy since I reorg'd the
group and put him in charge.  Thanks for your patience, however.

Jeff

	Nathaniel Jeppson <Njeppson@ALLENCO.COM>
	02/14/2001 10:34 AM

		 To: "'Jeffrey.A.Shankman@enron.com'" <Jeffrey.A.Shankman@enron.com>
		 cc:
		 Subject: RE: follow-up

Jeff,
Finally spoke to Per yesterday and we agreed to have lunch on the 26th (he's
in Houston this week and on vacation next week).  Any thoughts on my getting
down to Houston?  Hope you are well.
Nat

-----Original Message-----
From: Jeffrey.A.Shankman@enron.com [mailto:Jeffrey.A.Shankman@enron.com]
Sent: Monday, February 05, 2001 1:58 PM
To: Njeppson@ALLENCO.COM
Subject: RE: follow-up

Hi, thanks for the update.  Per was in Houston last week,  and I've asked
him to get with you soon.  Please call him (he should be expecting your
call) at our office in NY at.   212-702-3910.  Would you also like to come
to houston for a visit and interview?   Jeff

                    Nathaniel

                    Jeppson              To:
"'Jeffrey.A.Shankman@enron.com'"
                    <Njeppson@ALL        <Jeffrey.A.Shankman@enron.com>

                    ENCO.COM>            cc:

                                         Subject:     RE: follow-up

                    02/02/2001

                    06:20 PM

Jeff,
Quick update.  I called Jeff to see if is going to be in NY next week, his
sec. said that he's out of the office today and apparently not scheduled to
be in NY next week.  I am hoping that we will talk soon.  No call for Per
(sp?) in the NY office.  Hope you are well,
Nat

-----Original Message-----
From: Jeffrey.A.Shankman@enron.com [mailto:Jeffrey.A.Shankman@enron.com]
Sent: Tuesday, January 23, 2001 2:30 PM
To: Njeppson@ALLENCO.COM
Subject: RE: follow-up

I saw him this morn, and asked if he called you.  call him tomorrow or
thurs, and i'll follow up......

Nathaniel Jeppson <Njeppson@ALLENCO.COM> on 01/23/2001 11:35:26 AM

To:   "'Jeffrey.A.Shankman@enron.com'" <Jeffrey.A.Shankman@enron.com>
cc:
Subject:  RE: follow-up

Jeff,
Congratulations on yesterday's earnings release - the market reacted well.
Feedback I got from a large bank on the street is that they always
recommend
buying ENE in the weeks leading up to earings releases.  I don't want to be
a pain, but you had said to let you know if I had not heard from Jeff by
today.  I'm happy to be the one to make the call - just let me know.

Halley and Michael's opening was quite successfull and the show is great.
have fun in London.
Nat


Pat:  Would you please give Marie a call so that she can update Lotus Notes?
I'll be talking with Brent later today.  Thanks.  SS
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 07/28/99 08:51
AM ---------------------------
From: Brent Hendry AT ENRON_DEVELOPMENT@CCMAIL on 07/28/99 01:01 PM
To: Sara Shackleton@ECT
cc:
Subject: Duke Master

I noticed we have a master with Duke Energy Trading and Marketing, L.L.C.  I
am under the impression that there is another master with Duke that is being
negotiated because the business guys said that the negotiations on an ISDA
master agreement is holding up another power trade that the Duke entity down
here wants to do through its US subsidiary ECT is negotiating with.  Could
you update me on what is being negotiated with any of the other Duke
entities.  Also where is Duke Energy Trading and Marketing, L.L.C. located
and what types of trades does the master cover?  Thanks for your help.


Here's the revised form for the Blue Dog equipment:

Kay


Jerry,

Would you mind re-sending?  I can't find it on my system anywhere.  I did
find the signature page sent 4/20.

Many thanks,

Kay

"DeBerry, Jeremiah A." <JeremiahDeberry@paulhastings.com> on 04/24/2001
01:58:34 PM
To: "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>
cc:

Subject: RE: Execution drafts

Yes, the draft that was forwarded to you on and dated April 23, 2001 is the
draft to be executed.  Note however, that the date of the letter will be
changed to reflect the actual execution and delivery date.

Please let us know when the change orders have been executed.
-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Tuesday, April 24, 2001 1:50 PM
To: jeremiahDeBerry@paulhastings.com
Subject: Execution drafts

Hi Jerry,

Do we have a final, execution version of the letter agreement?

I understand that Enron's tax folks are ok with the suggested changes to
the LLC agreement.

We are working with GE to get the change orders executed.

Thanks,

Kay

"paulhastings.com" made the following annotations on 04/24/01 14:58:48
------------------------------------------------------------------------------
NEW E-MAIL ADDRESSES AT PAUL, HASTINGS, JANOFSKY & WALKER LLP

We have changed our e-mail address.  Our new domain name is
paulhastings.com.  In most cases, our address is composed of conventional
first name and last name plus @paulhastings.com.  Here are two examples:
janesmith@paulhastings.com and danjones@paulhastings.com.  If you have any
questions, please contact us at noc@paulhastings.com.

==============================================================================
"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 intended recipient is prohibited. If you received
this in error, please contact the sender and delete the material from all
computers."

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


Attached for your initial review are Enron Corp. comments on the Marketing Affiliate NOPR (RM01-10).   As you will see, this is an incomplete, bare bones version and we can enhance the arguments once it is clear we all agree with them.  Leslie has struggled mightily with this in light of the constant changes that have been going on and we are sure more changes will be necessary.

Comments must be filed at FERC by December 20.  In order to allow adequate time for a couple of redrafts and the concomitant reviews along with the other things that are going on, please advise me or Leslie of any suggestions, concerns or comments you have by COB MONDAY, NOVEMBER 26th.


After an incredible holiday of travelling and partying, I needed some time
to rest and dry out.  I looked into those fancy resort spas and they were
way to expensive.  And then I thought, what better way to do it then be
stranded on a ship for six months.  I will lose some weight, get in shape,
grow my liver back, and come out a lean, mean fighting machine.  It is day 3
of the six month "cruise" and I don't seem to feel much different?  I hope
they didn't lie to me...

This is my new address as my old PwC address will only be read when I am in
a port.  I hope everyone had blast over the holidays and here is a picture
on New Years of me before I got really out of control.
 <<Rio Beer Fireworks at NY.jpg>>

 - Rio Beer Fireworks at NY.jpg


Matt,

This is the new template for imbalance trades. So far, I think this is the one they want you to use.

 -----Original Message-----
From: 	Olinger, Kimberly S.
Sent:	Monday, September 24, 2001 8:58 AM
To:	Wynne, Rita; Lamadrid, Victor; Sullivan, Patti; Love, Phillip M.; Kinsey, Lisa
Subject:	imbalance trading template

I have set up a template in o:/common/logistics for the recording of imbalance trading as we discussed
in our meeting on Friday.

Let me know if this looks ok and if you think more information is needed.

Thanks,
Kim


CALENDAR ENTRY:	APPOINTMENT

Description:
	TMS Weekly Mtg. Conference room EB4102

Date:		12/5/2001
Time:		1:30 PM - 3:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


See the note below from Paul. The contract expires on Dec 31, 2002, and as advised by Hilda, Procaribe would need to provide a 90 days prior notice to extend it(Section 4.02 of the Tallaboa Pier Agreement),  if there is the need to do so under the Credit Agreement. This however would be a matter (hopefully) under Mirant's watch.

Coralina

 -----Original Message-----
From: 	Y'Barbo, Paul
Sent:	Thursday, September 06, 2001 6:04 PM
To:	Rivera, Coralina
Cc:	Maltes, Miguel
Subject:	Tallaboa Pier Use and Maintenance Agreement

Coralina,

The above referenced document between The Puerto Rico Ports Authority and The Protane Corporation is due to expire December 31, 2002 (Section 4.01). ProCaribe and the owner of EcoElectrica will make a decision next year about whether or not to extend.

Note that the LPG Storage and Services Agreement between ProCaribe and Eco states in Section 23.2.1(c) that ProCaribe will exercise all renewal or extension options under the Tallaboa Pier Agreement for the life of the LPG Storage and Services Agreement. Eco may, however, request or consent to the termination of the Tallaboa Pier Agreement as outlined in Section 23.2.1(b).

The Tallaboa Pier Agreement calls for ProCaribe and/or EcoElectrica to pay an annual fee of $200,000 plus escalation (Section 5.01). In return, ProCaribe and Eco receive First Preferential Use of the pier (Section 3.01 and 5.01) and do not pay dockage or wharfage (Section 5.01).

When the Eco deal was first put together, it was probably considered to be important that Eco have the First Preferential Use of the pier during Phase I of the project. It was expected that an LPG ship was going to be docked at Tallaboa Pier a large percentage of the time. As it turned out, there were no conflicts with other vessels as we are the only ones that have used the pier for the past few years. The pier could get other traffic in the future but that only matters if Eco is burning LPG.

It would be interesting to know if the Credit Agreement requires Eco to maintain its First Preferential Use rights for the life of the PPOA. Since LPG is Eco's back-up fuel, there is a possibility that the banks are requiring it.

Let me know if you need me to take this any further.

Paul


i don't know.  i am going to golf sunday morning at the woodlands which is
very nice.  i don't want to be real hung over, but i still might go out.
tonight i am definately going out.


This is the resume.

Thanks
Hunter
---------------------- Forwarded by Hunter S Shively/HOU/ECT on 08/14/2000
08:47 AM ---------------------------

Waltkoo@aol.com on 07/19/2000 11:47:53 AM
To: hunter.s.shively@enron.com
cc:
Subject: Chris Walters resume

Mr. Shively,

Per our conversation earlier today, I am attaching a resume for your review.
I would appreciate the opportunity to visit with you about a trading position
with Enron. I can be reached at (918)488-9812 or (918)629-5455. Thanks for
your time.

 - Walters2.doc


Start Date: 4/22/01; HourAhead hour: 4;  No ancillary schedules awarded.
Variances detected.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042204.txt

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

  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/22/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_ERNIE
  ENGY_TYPE: WHEEL
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/22/01
  TIE_POINT: SLVRPK_7_SPP
  INTERCHG_ID: EPMI_CISO_ERNIE
  ENGY_TYPE: WHEEL

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 4 / Preferred:   1.91 / Final:   1.88)
  TRANS_TYPE: FINAL
  LOAD_ID: PGE4
  MKT_TYPE: 2
  TRANS_DATE: 4/22/01
  SC_ID: EPMI


-----Original Message-----
From: 	Taylor, Craig
Sent:	Thursday, November 01, 2001 10:53 AM
To:	May, Larry
Subject:

THURSDAY NOVEMBER 01 2001

'I dream only of having my hand again'

FROM ANTHONY LOYD IN GOLBAHAR

KARIMULLAH is an Afghan who does not want to relate his war story. In a land where everyone is quick to tell their tale, his silence makes him unique.  He stood alone in the narrow midday shadows of the hospital courtyard when I saw him yesterday, a mix of glittering fury and blank despair. He had hobbled into the Red Crosss orthopaedic centre in Golbahar on Saturday.  Even among the other amputees, his injuries stood out. Mines can take off both legs and both arms, or the limbs of one side, or, more often, just a single leg or foot. Karimullah's injuries, however, had a different cause. When, reluctantly, he had finished accounting for the loss of his left foot and right hand there was nothing to do but leave the man to his blade-eyed stare.  The son of Tajik parents, now 26 years old, he fled Kabul when the Taleban arrived in 1996. Moving north to a village in Northern Alliance territory with his wife and two children, he found work in a vineyard. But he lost his job and home to a Taleban advance in 1998. He joined the Mujahidin.  A shell hit his post on the Samali Plain in 1999. It killed four of his comrades. Karimullah escaped to a Pashtun village whose inhabitants handed him over to the Taleban. Tried by a "military tribunal" in Kabul, after torture he was sent to the city's Pulecharkhi jail for having served with the Alliance.  "I had been there 12 weeks when three Talebs came into my cell," he said. "They called my name out and said I was to be released." Baffled but relieved, Karimullah was led to a Datsun pick-up.  "They began driving me to the Ghazi stadium," Karimullah said. "I was silent at the beginning, but as we neared it I asked, 'What is this? What of my release?' They told me, 'Wait you will be released'."  The Datsun drove into the centre of the stadium. Karimullah recalls thousands of faces staring at him in silence from the stands, and between 10 and 14 mullahs on chairs in a line in the middle of the field. He was pulled from the truck and told to lie spreadeagled on the grass.  "The mullahs didn't even ask my name or speak to the crowd. Seven doctors approached me. They wore grey uniforms, surgical masks and gloves. I could see one was crying. They injected me. After five minutes my body was numb though I was still conscious. Then they put clamps on my hand and foot and began to cut them off with special saws. There was no pain but I could see what they were doing."  I asked him if he stared at the sky. He told me he was transfixed by the sight of his foot being removed.  "There was a sigh and murmur from the crowd when they finished. It had taken about five minutes. Taleban guards threw me into the back of the pick-up. One was crying too. Nothing was said. Even now I am unaware why I was chosen for amputation".  He was taken to Kabul's Wazir Akbar Khan hospital. After a week eight of his former prison guards visited him. They brought him apples and 600,000 afghanis (?10).  "They apologised. They told me they had not known what would happen. I threw the money and apples back at them. I screamed that they had told me I would be released and instead had taken my foot and hand for nothing. They left."  On the tenth day he was discharged. A taxi took him to his parents' home. They had no idea what had happened to him.  Karimullah's eight-year-old sister, Razia, answered the taxi-driver's knock on the door. She burst into tears when she saw her brother sprawled in the back of the cab. Worse was to follow. "My mother had been ill for some time so was very weak. When she saw me, she collapsed. She regained consciousness for a few hours, but then had a heart attack and died.  "I thought the worst day of my life had been in the stadium. Coming home was worse. Her name was Masherin. She was 42."  He became a beggar, his mutilation carrying with it the stigma and shame of the punishment normally meted out to a thief.  Then, a few weeks ago, a cousin, a Mujahidin commander, got a message through the lines offering him help. Borrowing a spare prosthetic leg from a mine victim in Kabul, Karimullah limped northwards for days, crossing the front with other refugees.The Red Cross is preparing a prosthetic leg for him, but some scars cannot be repaired.  "I am finished. I have no future," Karimullah said. "I have had everything taken from me by the Taleban. Before they came to Kabul I was a student in the tenth grade, an educated man with some chances before me.  "Someone told me a rich Pashtun had committed a crime and paid the corrupt mullahs to use a prisoner of war for public amputation instead of himself. I don't know if it's true. But I hate them.  "I dream only of having my hand again so I could carry a gun and go to the front line and kill and kill. I'd kill them all, every Taleb and every mullah."

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Billy,

As requested I have attached the form agreement for firm intrastate
transportation service.
This form agreement should not be sent to outside parties without the legal
department's prior approval.
If you have any questions give me or Gerald Nemec  (x3-3512) a call.

Thanks,

Eric Gillaspie
713-345-7667
Enron Building 3886


Hi. You are so wonderful. Can it get any better?!!! Every minute with you no matter what we are doing is perfect. I love you so much and can't wait for us to be together always. You have a great sense of humor and you understand mine (that's a plus!). Take care babe.

	Steve


I checked w/the Corp. Secretary's office, and they were unaware that Rex and
Dave  were appointed as MD's, so the corporate paralegal is getting the board
resolution passed adding them on, as well as adding Mark Palmer as a VP.

	Louise Kitchen
	10/18/2000 10:34 AM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: Re: NDA

Rex Shelby or David Berberian to sign

From: Tana Jones on 18/10/2000 08:43
To: Louise Kitchen/HOU/ECT@ECT
cc:

Subject: Re: NDA

Mike Haney with EBS.

	Louise Kitchen
	10/17/2000 05:58 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: NDA

PWC - whose NDA is it?

Please exapnd to all VPs.

Thanks


---------------------- Forwarded by Luchas Johnson/NA/Enron on 01/02/2001
06:00 PM ---------------------------

"Williams, Shanadolyn" <WilliamsS18@aetna.com> on 12/29/2000 04:17:23 PM
To: "'LUCHAS.JOHNSON@ENRON.COM'" <LUCHAS.JOHNSON@ENRON.COM>
cc:

Subject: FW: Games

> -----Original Message-----
> From: Miller, Von T
> Sent: Friday, December 22, 2000 2:49 PM
> To: Williams, Shanadolyn
> Subject: FW: Games
>
>
>
> -----Original Message-----
> From: Polk, Tanza C
> Sent: Tuesday, October 10, 2000 3:46 PM
> To: Miller, Von T
> Subject: FW: Games
>
>
>
> -----Original Message-----
> From: Miller, Von T
> Sent: Thursday, September 16, 1999 1:55 PM
> To: Polk, Tanza C
> Subject: FW: Games
>
>
>
> -----Original Message-----
> From: Green, Serina
> Sent: Monday, August 02, 1999 4:55 PM
> To: Valdez, Valerie; Barbier, Mildred D; Polk, Tanza C; Miller, Von T;
> Dixon, Dietrich
> Subject: FW: Games
>
>
>
>   -----Original Message-----
>  From: Luna, Alfred
>  Sent: Friday, July 09, 1999 4:12 PM
>  To: Green, Serina
>  Subject: FW: Games
>
>   <<DOTS.EXE>>  <<STICKS.EXE>>  <<FLAGHUNT.EXE>>  <<SPADES.EXE>>
> <<HANGMAN3.EXE>>  <<Mac Word 3.0>>  <<HYPEROID.EXE>>  <<PACPC.EXE>>
> <<AFORCE.EXE>> peaceII
>  Alfred Luna
>  Quality of Service Unit
>  Ext. 62048
>
>  The above information is confidential and should be read by
> addressee or their specific designee in accordance with the Patient
> Protection Act.
>
>  -----Original Message-----
>  From: Harder, Katherine
>  Sent: Friday, July 09, 1999 3:54 PM
>  To: Luna, Alfred
>  Subject: FW: Games
>
>
>
>
>  Katherine Harder
>  Quality of Service
>
>  The above information is confidential and should only be read by
> addressee or their specific designee in accordance with the Patient
> Protection Act.
>
>  -----Original Message-----
>  From: Carranza, Claudia [mailto:CCarranza@tmh.tmc.edu]
> <mailto:[mailto:CCarranza@tmh.tmc.edu]>
>  Sent: Friday, July 09, 1999 10:36 AM
>  To: Harder, Katherine
>  Subject: FW: Games
>
>
>
>
>  > -----Original Message-----
>  > From: Davila, Claudia
>  > Sent: Thursday, May 27, 1999 4:31 PM
>  > To: Nelson, Dianne C.
>  > Subject: FW: Games
>  >
>  >
>  > > > <<PACPC.EXE>>  <<AFORCE.EXE>>           <<DOTS.EXE>>
> <<STICKS.EXE>>
>  > > <<FLAGHUNT.EXE>>  <<SPADES.EXE>>  <<HANGMAN3.EXE>>  <<SKI.doc>>
>  > > <<HYPEROID.EXE>>  <<PACPC.EXE>>  <<AFORCE.EXE>>
>  >  <<DOTS.EXE>>  <<STICKS.EXE>>  <<FLAGHUNT.EXE>>  <<SPADES.EXE>>
>  > <<HANGMAN3.EXE>>  <<Mac Word 3.0>>  <<HYPEROID.EXE>>
> <<PACPC.EXE>>
>  > <<AFORCE.EXE>>

 - DOTS.EXE
 - STICKS.EXE
 - FLAGHUNT.EXE
 - SPADES.EXE
 - HANGMAN3.EXE
 - SKI.doc
 - HYPEROID.EXE
 - PACPC.EXE
 - AFORCE.EXE


I'm sorry it's taken me so long to track down this name and number, but I
finally spoke with someone at Puget who said Suzanne McFadden is the person
you need to talk to. Her number is 425-462-3844.

If you need any other information, please don't hesitate to ask.
]
Thanks,
Kate

Kimberly Hundl@ENRON
11/28/2000 07:41 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Deal #467090 Puget Sound Energy, Inc.

Can you please get a contact name and phone number for this counterparty from
Mike Swerzbin as soon as possible? -I need to get a verbal confirm on this
deal so that we can send out the confirmation letter and the number we have
in the system has been disconnected.  Also, we're checking on that other deal
that I asked you about yesterday (I thought we confirmed it under the
original deal # so I wasn't sure if we needed to confirm it again)
Thanks!
Kim


fyi.  I'll respond later.  Back to the contract....
---------------------- Forwarded by Kay Mann/Corp/Enron on 10/11/2000 08:16
AM ---------------------------

	From:  Scott Healy @ ECT                           10/11/2000 08:03 AM

To: Kay Mann/Corp/Enron@Enron
cc: Jeffery Ader/HOU/ECT@ECT, Stephen Plauche/Corp/Enron@Enron

Subject: FuelCell Negotiations

I spoke to Fuel Cells and here is my suggested schedule for the negotiations:

October 11, 2000--We redraft purchase order and send it to FuelCells.

October 12, 2000-We hold a conference call with FuelCells in the morning to
walk them through the P.O. and give them our thoughts (probable length 1-1.5
hours).  We continue to work on P.O.

October 15, 2000--Kay flies to New York.  We have a conference call with
FuelCells in the afternoon to discuss their initial comments on P.O.  Kay
meets with Bingham to get work assignments started (i.e., permitting work,
start drafting construction agreement, changes to Development
Agreement...etc).  Scott takes 'red-eye" flight to N.Y.

October 16, 2000--Meet with FuelCells in Bingham's offices.  Continue
negotiations on P.O.

October 17-19, 2000--To be determined based on progress of meetings.  If need
be, we could continue negotiations in Houston or have Kay patch in by the
telephone or do all the negotiations by telephone.

What are your thoughts?


I'm sure this doesn't  matter, but I'm in Jeff Hodge/Barbara Gray's cost
center.  Just so long as I get paid!

4-13 was a vacation day.

Thanks again,

Kay

Becky Spencer@ECT
04/13/2001 03:45 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Time

Since Suzanne Adams is out of the office I will be inputting time for Sheila
Tweed's Cost Center for this pay period.  Please send me your time for the
pay period 4-1 through 4-15 by 5:00 p.m. on Friday (the 13th).  You may reply
to this e-mail with any time exceptions such as vacation, sick, personal,
jury duty, etc.  Basically, any time not working!

Kay:  Early Monday is fine.

Thank you!
Becky Spencer
x37599


John, in light of the support that she has from you, Randy, and Rob, I am ok
with your proposal.  Jim
---------------------- Forwarded by James Derrick/Corp/Enron on 12/03/2000
04:40 PM ---------------------------

Stephanie Harris
12/02/2000 10:51 AM
To: James Derrick/Corp/Enron@ENRON
cc:

Subject: Celina Ozorio

----- Forwarded by Stephanie Harris/Corp/Enron on 12/02/2000 10:48 AM -----

	John Novak
	12/01/2000 04:23 PM

		 To: Stephanie Harris/Corp/Enron@ENRON
		 cc:
		 Subject: Celina Ozorio

Stephanie -- Just in case this didn't make it to Jim, can you please pass
this along?  Thanks.
---------------------- Forwarded by John Novak/SA/Enron on 12/01/2000 07:20
PM ---------------------------

John Novak
11/30/2000 10:25 AM
To: James Derrick/Corp/Enron@ENRON
cc: Rob Walls/NA/Enron@Enron, Randy Young/NA/Enron@Enron

Subject: Celina Ozorio

Jim:

Celina Ozorio is a paralegal in the Rio office who has performed very well
this past year and who we would like recommend for promotion to a junior
attorney (Attorney I) position.  I have discussed this with both Randy and
Rob and they support this move.

Celina is a Brazilian-qualified lawyer with a U.S. LLM who was hired a year
ago as a paralegal rather than as an attorney due to her relative lack of law
firm experience.  During the past year she has been enthusiastic in pursuing
her professional development and demonstrating her capabilites as a
professional.  She has actively sought out opportunities to take on more
responsibility and to learn more about our business and has worked very hard
to win the confidence of the lawyers and clients with whom she works.  We
believe that she has demonstrated the ability to operate at the junior
attorney level now and the potential to develop into a solid senior Enron
attorney in the future.  As a junior attorney, she would continue to work
under the supervision of more senior attorneys and would have the opportunity
to continue her professional development.

I understand that we have done this elsewhere in the Company and believe that
it sends the right message to others in the department that there are
opportunities for advancement and that hard work and merit are rewarded.

Please let me know how you feel about this recommendation and whether you
think it would be appropriate for us to schedule her to visit with you in
Houston.  Thanks.

Regards,
 John


Jim, is there executive summaries for the following:
 a) Eastern Interconnect investigation  by region;
 and b) RTO's filings.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 11/12/2000
04:39 PM ---------------------------

	From:  Christi L Nicolay                           11/10/2000 03:15 PM

To: Richard Shapiro/NA/Enron@Enron, Sarah Novosel/Corp/Enron@Enron, Joe
Hartsoe/Corp/Enron@Enron, Jeff Brown/NA/Enron@Enron, Bill Rust/HOU/ECT@ECT,
Ben Jacoby/HOU/ECT@ECT, Kevin M Presto/HOU/ECT@ECT, Mike J
Miller/HOU/ECT@ECT, John Moore/Corp/Enron@Enron, Debbie
Chance/Corp/Enron@Enron, Patrick Hanse/HOU/ECT@ECT, Fletcher J
Sturm/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect, Edward D Baughman/HOU/ECT@ECT,
Tom Dutta/HOU/ECT@ECT, Ozzie Pagan/HOU/ECT@ECT, Tom Hoatson/NA/Enron@Enron,
Janine Migden/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron, Marchris
Robinson/NA/Enron@Enron, John Moore/Corp/Enron@Enron, Bill
Moore/NA/Enron@Enron, Robin Kittel/NA/Enron@Enron, Jeffrey M
Keenan/HOU/ECT@ECT, Richard Ingersoll/HOU/ECT@ECT, Charles Yeung/HOU/ECT@ECT,
Shelley Corman/ET&S/Enron@ENRON, Rogers Herndon/HOU/ECT@ect, Lloyd
Will/HOU/ECT@ECT, Maria Valdes/Corp/Enron@Enron, James D
Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Bob
Carter/HOU/ECT@ECT, Chris Gaffney/HOU/ECT@ECT, Barton Clark/HOU/ECT@ECT,
Sheila Tweed/HOU/ECT@ECT, Oscar Dalton/HOU/ECT@ECT, Dave
Mangskau/Corp/Enron@Enron, Kerry Stroup/DUB/EES@EES, Greg
Krause/Corp/Enron@Enron, Raimund Grube/Corp/Enron@ENRON, David L
Fairley/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT, Steve
Krimsky/Corp/Enron@Enron, Richard Lydecker/Corp/Enron@Enron, Mary
Hain/HOU/ECT@ECT, Fred Mitro/HOU/ECT@ECT, Janet R Dietrich/HOU/ECT@ECT,
Richard Lydecker/Corp/Enron@Enron, Tom Chapman/HOU/ECT@ECT, Tom
Delaney/Corp/Enron@ENRON, Steve Walton/HOU/ECT@ECT, Kay
Mann/Corp/Enron@Enron, Rebecca Walker/NA/Enron@Enron, Reagan
Rorschach/NA/Enron@Enron, John Berger/HOU/EES@EES, Alan Larsen/PDX/ECT@ECT,
Rusty Stevens/Corp/Enron@ENRON, Dave Kellermeyer/HOU/ECT@ECT, Mathew
Gimble/HOU/ECT@ECT, Ron Tapscott/HOU/ECT@ECT, Michelle Zhang/HOU/ECT@ECT,
Susan M Landwehr/NA/Enron@Enron, Roy Boston/HOU/EES@EES, Aleck
Dadson/TOR/ECT@ECT, Joe Connor/NA/Enron@Enron, Ron McNamara/NA/Enron@Enron,
Robin Kittel/NA/Enron@Enron, Karen E Carter/NA/Enron@Enron, Chris
Booth/NA/Enron@Enron, Steve Montovano/NA/Enron@Enron, Barbara N
Gray/HOU/ECT@ECT, steve.wang@enron.com, ebaughm@enron.com,
terri.clynes@enron.com, oscar.dalton@enron.com, doug.sewell@enron.com,
kcompea@enron.com, mike.e.kelly@enron.com, gary.justice@enron.com,
patrick.hanse@enron.com, ozzie.pagan@enron.com, heather.kroll@enron.com,
david.fairley@enron.com, ray.hoppe@enron.com, george.mccormick@enron.com,
wjennin@enron.com, joseph.wagner@enron.com, elizabeth.johnston@enron.com,
bill.rust@enron.com, Kevin M Presto/HOU/ECT@ECT, John J
Lavorato/Corp/Enron@Enron, David W Delainey/HOU/ECT@ECT, Janet R
Dietrich/HOU/ECT@ECT, Mike J Miller/HOU/ECT@ECT, Lloyd Will/HOU/ECT@ECT,
George Hopley/HOU/ECT@ect, Fletcher J Sturm/HOU/ECT@ECT, Robert
Benson/Corp/Enron@ENRON, Jeff King/Corp/Enron@Enron, Larry
Valderrama/HOU/ECT@ECT, Peter Makkai/NA/Enron@Enron, Larry
Jester/Corp/Enron@ENRON, Rogers Herndon/HOU/ECT@ect, Mike
Carson/Corp/Enron@Enron, Kyle Schultz/HOU/ECT@ECT, Eric
Saibi/Corp/Enron@ENRON, Grace Kim/NA/Enron@Enron, Laura
Podurgiel/HOU/ECT@ECT, Mitch Robinson/Corp/Enron@Enron, Kayne
Coulter/HOU/ECT@ECT
cc: James D Steffes/NA/Enron@Enron
Subject: FERC Staff Investigations on Midwest and Southeast Bulk Power Systems

On 11/1/00, FERC Staff issued reports on its Investigation of Bulk Power
Markets in the Eastern Interconnection.  These reports were the result of a
Commission order earlier this summer.  Enron's Federal regulatory staff
(Christi, Charles Yeung, and Sarah Novosel) provided a great deal of
information for this investigation and Joe Hartsoe and Donna Fulton discussed
many of the problems with the grid with the new head of Staff, Scott Miller
(who recently joined FERC from PG&E Gen).    While the Commission is under no
obligation to take any of Staff's recommendations, the Commission typically
looks to Staff for guidance on transmission and market issues.  Importantly,
Staff concludes that the Commission should consider these options for the
Southeast and Midwest -- all of which Enron has been asking FERC to implement
for several years:

Reduce the advantages of network service over point to point service by
requiring that native load be served under the same tariff as other
transmission services to eliminate the current incentives that VIUs have to
favor their native load through the calculation of ATC and handling of
interconnection requests.

While the Staff Hotline is used productively, the Commission can direct Staff
to conduct formal investigations into entities that have a pattern of
complaints.

The Commission could require TPs to submit tariff provisions containing a pro
forma interconnection process specific to interconnection, rather than simply
relying on the Tennessee Power order that utilizes the OATT timelines and
procedures.

Require TPs to retain real-time transmission data on market functions
pertaining to daily load, internal generation to meet that load, and imports
and exports.

RTOs should submit the basis and methods for calculating ATC and TTC, as well
as standardized criteria for curtailment.  In addition, since even such
standardized criteria might not "get to the root of the problem" -- that
control area still control generation -- the Commission could require that
each RTO set a date certain by which it will create one control area.
Regardless of the implementation of these two options, the Commission could
standardize ATC and TTC methodology.

Staff finds that while electricity is a commodity with market characteristics
similar to many other commodities, it is still viewed as "different," with a
reaction of price caps.  Staff encourages that basic decisions about the
regulatory model be made in order to complete the transition from a
traditional cost-of-service model to a model that uses markets to price the
commodity and services.

DETAILS  (Also, the reports contain good summaries of the generation,
transmission, state retail, federal reg. and other issues for the region):

Midwest:  The Midwest is dominated by vertically integrated Transmission
Providers ("TPs") that control transmission, generation and load.  "As such,
they have weak economic incentives to provide access to transmission service
to third-parties and strong incentives to favor their own services."  Staff
received numerous complaints; however, due to the lack of information
available from TPs, Staff cannot conclude whether these are isolated
incidents or wide-spread.  At the very least, the complaints indicate a lack
of confidence in the bulk power market and the ability of market participants
to rely on transmission access, thus harming the liquidity of the market.

TLRs are the most important transmission issue in the Midwest, with an
"enormous" increase in 2000.  The region showed a decline in peak load from
1999 to 2000 and a growth in new generation since the 1998 price spikes.
Even though there was an increase in generation and mild weather with
virtually no price spikes, TLRs climbed to record numbers.  The TLRs were
highly concentrated:  only 5 flowgates account for 41% of ECAR TLRs and
another 5 flowgates in MAIN account for 42% in that region.  Notably, even
though the NERC procedures for Level 3 TLRs mandate transaction curtailment,
78 of the 191 TLRs in the Midwest do not show any curtailment amount.  The
total amount of relief that these curtailments are intended to produce are
not posted.  Staff notes that TLR rules are established by NERC, whose
procedures are voluntary and not enforced by penalties.  While the Commission
has required certain NERC standards and procedures to be placed in Open
Access Transmission Tariffs ("OATT") where the Commission has the power to
enforce provisions under the Federal Power Act, in practice the Commission
has generally deferred to NERC on transmission reliability questions,
including the propriety of TLRs.

TLRs inhibit optimal functioning of the transmission system and market
because load is not served by the least cost supplier.  TLR procedure is an
inefficient instrument in mitigating constraints -- curtailment by fiat.  In
addition, the NERC IDC can result in inappropriate curtailments or increased
loading on the affected flowgate.  The impact could be mitigated by one
control area per RTO.

Staff notes that the Midwest state commissions did not petition FERC for
price caps following the 1998 price spikes.  Some market participants believe
that the absence of price spikes is the single reason that NUG construction
increased in the Midwest.

Market participants must keep track of, and follow, a plethora of information
in order to make energy deals, submit reservations and provide schedules for
service.  Staff received many complaints about barriers to transmission
access, including TLR curtailments and a lack of standardized information and
protocols, particularly for ATC and interconnection requests, and
discriminatory conduct.  Unbelievably, key data was unavailable to Staff,
such coincident peak load data, system-wide snap shots for days when TLRs
were called, and import/export data.  This lack of data creates a market
inefficiency, because neither market participants nor regulators can fully
analyze market conditions in real time.  As such, the market is risk adverse,
eschewing long-term deals for short-term transactions.  Staff also noted that
because the Security Coordinators often work for the IOU, there is a mixed
incentive to enforce reliability on the grid and maximize profit for the
IOU.  (Staff cites Richard Tabors' paper, "Transmission Markets, Stretching
the Rules for Fun and Profit.")

Staff cites the lack of information on OASIS or on the NERC web site,
particularly about real time TLRs and curtailments.  Examples were provided
to Staff of transmission refusals when there were no TLRs posted and improper
implementation of TLRs causing substantial financial loss.

The currently proposed Midwest RTOs may mitigate some problems; however, all
three retain existing control areas with the favortism for generation and
native load.  These incentives will continue to remain until the RTO
exercises complete autonomy over transmission control and security
coordinator functions.  Staff notes that the Midwest is a balkanized region
of 61 control areas with no uniform method for calculating ATC and CBM.  The
result is that ATCs can be different on 2 different sides of an interface.
Staff notes examples in inaccurate ATCs and states that Staff's own ATC audit
this summer was consistent with market participant complaints.  Staff is
weighing follow-up options.  The result of these problems is a lack of
liquidity.

Staff next noted the problems with unfiled "business practices," especially
on the next hour market.  Staff's audit of OASIS sites revealed several areas
of non-compliance.

Information transparency is necessary for a market to function efficiently,
with equal and timely access to data, including ATC, CBM, TRM, and load flow
input data.  TPs have incentives to resist efforts to make this information
transparent because of native load.  This incentive will still exist under
RTOs if utilities are allowed to calculate their own ATC.  ***  "As a
consequence, the Commission may wish to eliminate the native load exemption
and have all transactions under the same tariff."  ***  The Commission could
benefit by having access to existing transmission data and should require the
TPs to retain data, including current real-time network status.

Interconnection Issues:  IPPs need to be compensated for VAR support.  Also,
Staff cites a number of Hotline complaints about TPs seeking large deposits
or failing to complete System Impact Studies timely.  One solution is to have
the RTO handle this function to eliminate the disincentive the utilities have
against IPPs.  The current practice of requiring IPPs to deal with a wide
variety of procedures inhibits the free flow of transactions within the
region.

Network service has inherent advantages over point-to-point, citing the
Entergy source and sink order.  The Commission has relied on "passively"
receiving informal and formal complaints to determine if discriminatory
behavior has occurred rather than actively canvassing market participants.
While Staff cannot conclude that discriminatory practices are widespread,
there is evidence of discriminatory instances.

Southeast:  The traditional vertically integrated utility ("VIU") model has
largely persisted in the SE.  This continued control has vastly reduced the
economic incentives to facilitate IPP activities.  In many cases, the VIUs
have dampened IPP involvement without violating any Commission regulation due
to the inherent flexibility of the current rules.

Staff cites examples of delays in performing system impact studies,
transmission hoarding in the name of serving native load growth and
manipulation of ATC.  TPs have shown little inclination to improve the
transmission system and use many TLRs.

There is also a lack of market information that has stymied the development
of markets in the SE.  ATCs change constantly that leads to uncertainty and
there is no clearinghouse for electric power prices.

TVA, despite having taken steps to participate in reformed markets, has acted
as a bulwark against the development of competitive energy markets in the
SE.  This is significant because of TVA's size and location.  IPPs have
reported TVA's discouragement of siting in TVA through excessive time to
perform studies, excessive fees, and rejection of requests to perform
interconnection studies.

In addition, Staff cites the Florida Sup. Ct. decision against merchant
plants as significantly impeding the competitive market in Florida.

Staff discusses the significant flow of power from the Midwest to the SE this
summer.  Much of this resulted from the import of cheaper coal power, than
the use of gas fired peakers due to higher gas prices.  Peak prices were
radically lower this summer because utilities appear to have been better
prepared for peak events through the use of forward contracts, increased
generation capacity on line and reduced number of forced outages.

SE utilities reported that they have not used market-based rates to
extensively increase sales.  (Less used than in the midwest.)

The SE region lacks information, which has retarded the Staff's efforts to
discern the truth about the numerous complaints about transmission in the SE
(including ATC and TLRs).  Market participants seem to have less confidence
in the SE market than in any other market region.  This appears to be
justified based on Staff's investigations.  This lack of confidence
discourages investment and participation in the markets.  Staff concludes
that the Commission may need to be more prescriptive in terms of how
transmission is allocated in the SE RTOs, since there are market concerns
that the incumbents will continue to dominate operations.  The investigation
found numerous problems in bad ATCs and TTCs and poor OASIS postings.  In
addition, several OASIS audit logs actually erased historical data.  Staff
thinks that additional affiliate transaction information should be posted.
Staff could not obtain summer demand data and the Commission's lack of
jurisdiction over TVA made it difficult to obtain transmission access
information.

The Staff investigation revealed unclear interconnection procedures and lack
of adherence to schedules and arbitrary cost estimates and deposits.  In
addition, the TPs have reserved a huge amount of network transmission
capacity, much of it reserved shortly after the IPP approached the TP to
interconnect.  Staff cites the recent Skygen order in which Southern denied
Skygen's request for transmission stating that the only option was the
construction of an 80 mile 500 kv line that would take 8 years to complete.
Staff solutions include allowing network requests by IPPs and limiting
self-build capacity in the incumbent's territory.

ATC variations are a big problem in the SE.  SERC coordination of a
standardized ATC is a long process and may not be resolved soon without
direction from the Commission.  An improved method and improved communication
are needed.

The SE experienced a 354% increase in TLRs this summer.  This increase raises
the issue of whether curtailment has become an impediment to the competitive
operation of the market in the SE.  Staff cites information provided by
Charles Y. that an Ameren TLR was not implemented according to NERC
criteria.  Staff also wonders if transmission is being oversold since TPs do
not generally refund transmission revenues when TLRs are implemented.  RTOs
must have a broad geographic area to internalize much of the constraints.  In
addition, RTOs will adopt pricing mechanisms that obviate recourse to TLRs.
However, if control areas are retained, VIUs will retain mixed incentives.

*** As noted in the Midwest report, the manner in which load is calculated
weighs heavily on the value of this information.  This is an issue that the
formation of RTOs may not resolve.  Eliminating native load exceptions -- ie,
treating all load equally -- and placing all transactions under the same
tariff may be an option that provides the right incentives for the provision
of transparent and standardized information.

Finally, Staff describes specific problems with TVA and FP&L, TVA is a
"problem area" for the Eastern Interconnect grid.  TVA is a transmission
bottleneck due to the many TLRs called this summer.  The current federal law
and lack of Commission jurisdiction are impediments to the development of
deep and robust power markets in this area.  TVA simply has no strong
incentive to provide effective and efficient transmission service.  In
addition, the Commission does not have full information on TVA.  Staff lists
a number of complaints against TVA, including unjustifiably increasing the
tag deadline and allowing TVA Marketing, but not others, to sink and park
power.  Staff concludes that recent proposals by TVA to enhance the
development of markets and its system do not appear to have great potential.

A Staff audit of FP&L revealed violations of standards of conduct, including
confidential information on FP&L's transmission system (including interchange
information for other entities) posted on EMS systems that were available to
FPL's merchant function.  Staff's report found that FP&L does not have an
established procedure for review of EMS to ensure that information is not
displayed in error.  It is "up to individual Managers discretion."  ((FRCC
web site report dated 9/8/00)).  Violations such as these undermine
competition.

The reports are attached below.

 - southeast.pdf
 - midwest.pdf


I've been on the road the last few days trying to find new engineers and am
just now digging through my email stack.

I assume the question concerns the big chunk of metal that has a steel bar
pressed into an aluminum base and a slanted steel plate on top.  Tom Murray
helped me build it.  We are both class of '79 and I believe we built it in
'78 or '79.  We put it together in the old Washburn machine shops were I
was working as an assistant.  The idea of the steel plate was to put the
brothers name once each week when it was passed around.  Dave M. has a much
better recollection of how it was introduced than I do so I will let his
version of the events stand.

For the history of the award and how it all started you will have to ask
someone else.

One of these years I'll get back for a reunion but I've been living in
Switzerland for the last 10 years and with a family it's not so easy to get
over very often.  Noone sings "Home on the range" anymore but I do enjoy
the yodelling and Swiss alphorns.  I actually don't feel that far away from
the USA.  I can get TexMex to eat right around the corner from the office.
The night of the election one of the main Swiss television stations had an
all night broadcast  and people are always asking me who is going to win.
I sometimes think the Swiss are talking about the election as much as the
Americans.  The more sensible ones understand what's happening.  In any
case my kids (10 and 12) are very interested and it gives me a chance to
explain how the system works (or doesn't depending on your viewpoint).  By
the way, when is someone going to come over for a visit ?

I'm the Manager for National Instruments here for those of you familiar
with LabVIEW.  Just look at a National Instruments advertisement and find
the phone number for Switzerland and that's where you will find me.  The
old Email address still works but National Instruments got the rights to
ni.com so the ending switched.  Here is the current address :
vance.carter@ni.com

pa

Vance Carter (Tex) '79
Rebbergstrasse 2
CH-5312 D"ttingen
Switzerland
011 41 56 245 5634

rick_schneider@notes.teradyne.com on 14-11-2000 10:12:32 PM

To:   "Dziura, Richard" <richard.dziura@superiorelectric.com>
cc:   "'Bob Prytko'" <bprytko@sepracor.com>, "'saealumni@wpi.edu'"
<saealumni@WPI.EDU>, "'Vance.Carter@natinst.com'"
<Vance.Carter@natinst.com>, rleone@xl.bm, alan.masse@stpaul.com,
Gary.Wong@fmr.com, mark_galvin@notes.teradyne.com,
david_castelli@notes.teradyne.com, michael_yevak@notes.teradyne.com
Subject:  RE: Bove

I just heard from Rich Leone, Class of '76 (rleone@xl.bm);  he knows the
true origins.....
pa,
rick schneider '79

"Dziura, Richard" <richard.dziura@superiorelectric.com> on 11/14/2000
03:46:59 PM

To:   "'Bob Prytko'" <bprytko@sepracor.com>, "'saealumni@wpi.edu'"
<saealumni@WPI.EDU>, "'Vance.Carter@natinst.com'"
<Vance.Carter@natinst.com>
cc:

Subject:  RE: Bove

This address for Vance is a couple of years old.  Is it already on the
alumni list?

Another person to consult for history is the Doctor - Rich Harabedian,'75.
My memory is pretty fuzzy on this but I thought he may have been in on the
beginning.  I know he was in on official Room 7 SB Bove meetings (count off
by two's) that took place before my years there.

-----Original Message-----
From:     Bob Prytko [SMTP:bprytko@sepracor.com]
Sent:     Tuesday, November 14, 2000 2:06 PM
To:  'saealumni@wpi.edu'
Subject:  Bove

I think vance carter's email is flaoting around somewhere, do you
have it?
Check out the hill's list or site for it.  I may have it at home.  P

House Core tonight

_______________________

DZ wins the prize!
Yes, the S.B. Bove trophy was created by C. Vance Carter in the Washburn
shops I think during 1978 while he had a student job there.  Vance and I
were roomates during freshman year and joined Mass Delta together and lived
there 1976 through 1979.
I remember the night he presented the new trophy to the House Meeting for
the first time.  Wild applause and instantly adopted as the only true and
official Bove trophy.  I thought he had his initials on the bottom of the
base, but I could be wrong.
The S.B. Bove award already had a history before our time (like DZ said)
but
Vance's design was the first actual trophy I think we had for the award.
We
awarded it each week so there must be huge history of deserving winners by
now.  Maybe Mass Delta needs to consider a "Bove Lifetime Achievement
Award"?
Vance, since we're all talking about you why don't you add your part of the
history here?
PA,
David Mangini '79


Caroline,
The  original AIG-Bermuda confirms that I did a few weeks ago that were sent
to them had the opinion attached.  They have seen it because they commented
on it.

Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com

	Caroline Abramo@ENRON
	05/22/2001 07:37 AM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc:
		 Subject: Re: AIG

They do not have the document yet.. do they need for the confirm??

   Carol St Clair @ ECT                05/21/2001 06:00 PM

To: Caroline Abramo/Corp/Enron@ENRON
cc: Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul
Radous/Enron@EnronXGate, Sara Shackleton/HOU/ECT@ECT

Subject: Re: AIG

We need the Bermuda law legal opinion.  What is the hold up?

Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com

	Caroline Abramo@ENRON
	05/21/01 03:33 PM

		 To: Carol St Clair/HOU/ECT@ECT
		 cc: Paul Radous/Corp/Enron
		 Subject: AIG

Carol= Paul is OK with raising the cross default amount... can we get out
draft ISDAs to them???? AIG Commodity Arbitrage Ltd. and AIG Commodity Fund
L.P.

Thanks,
Caroline
---------------------- Forwarded by Caroline Abramo/Corp/Enron on 05/21/2001
04:29 PM ---------------------------
   Carol St Clair @ ECT                05/10/2001 09:00 AM

To: Caroline Abramo/Corp/Enron@Enron
cc: Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent
Hendry/NA/Enron@Enron, Sara Shackleton/HOU/ECT@ECT, Paul
Radous/Enron@EnronXGate

Subject: AIG

Caroline:
I have received and reviewed their comments.  On the legal front, they are
objecting to the Bermuda law opinion.  We cannot do this without an opinion.
If we need to recommend Bermuda counsel to them we can.  On the credit side,
for AIG Commodity Arbitrage Fund LP they want to increase the cross default
threshold from $1,500,000 to $2,500,000.  Paul, are you okay with this?  I am
okay with their other comments.

Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com


Hi Robin,

Here they are.

Brian.  : )


Let's try the last row window seat.  Thanks.

	Enron North America Corp.

	From:  Patti Thompson                           01/16/2001 10:47 AM

To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Airline seats

Sally,

Per Catherine at Travel Agency in the Park, bulkhead seats were all that were
available when she booked flight 3 or 4 weeks ago.  Says those particular
flights have gotten quite popular lately.  Only other option for return:

Same isle (E)
 - Row 8 (also bulkhead, but maybe not as noisy)
 - Last row window seat (doesn't recline as much as other seats)

If you like either of these better that existing seat, let me know & I change
it.

PT


California Regulators Back Rate Increase For Utilities

* California regulators indicated yesterday that they are willing to
raise rates for electric utilities EIX and PCG,  following a review of their
finances
* Hearings to review utilities' financial status in hearings on Dec.
27 and 28
* KEY DATE:  January 4, when we expect they will vote to raise rates
* We see this action as positive for the utilities, because it reduces
the likelihood of insolvency or bankruptcy, although further action is
required, in our view
* We also see it as positive for our Growth Energy companies.  Any
reduction in financial pressure on the utilities equates to reduced pressure
to re-regulate the wholesale power industry, in our view
* The results of the action were in line with our expectation; we
recommend investors buy the Growth Energy names on weakness.  In particular,
we highlight DYN, CPN, NRG, SOE and DUK.

 <<CA Power Market II 12-22-00.pdf>>

Raymond C. Niles
Power/Natural Gas Research
Salomon Smith Barney
(212) 816-2807
ray.niles@ssmb.com

s

 - CA Power Market II 12-22-00.pdf


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Week of November 21, 2000
A Weekly Travel Newsletter from  TravelNow.com

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Hi, Brian:

The ISDA is being faxed to you now.

Marie

 -----Original Message-----
From: 	Brian.Kerrigan@TXU.com@ENRON [mailto:IMCEANOTES-Brian+2EKerrigan+40TXU+2Ecom+40ENRON@ENRON.com]
Sent:	Monday, October 01, 2001 5:58 PM
To:	Heard, Marie
Subject:	Master ISDA and Credit Support Annex

Marie, - I would appreciate you sending me a copy of the Master ISDA
Agreement and associated Credit Support Annex between Enron and TXU.  The
Agreement is dated October 19, 1995 between Enron and Enserch.  TXU
acquired Enserch approximately 1-2 yrs. ago.  If you have any questions,
please call me at 214-875-9603.

If you could fax me a copy of it at 214-875-9063 I would appreciate it.

Thanks again for your assistance.


Robin said you are going to be doing some of the Inside Ferc numbers.  I'm
out Friday so I'm sending this to you now.


As a follow-up to our discussions yesterday, attached is a revised
statement/Q&As.  This statement reflects significant changes
from the Enron India team.  It has been approved by Wade Cline and Sandeep
Katwala (legal).   The  issue will probably resurface tomorrow,
so your early comments and approval would be appreciated.  I can be reached
at home (713-572-9556) or cellular (281-948-7273) this evening.

There have been a number of press reports today about the payment issue.
Copies of the stories follow.  The Reuters' story was previously forwarded by
Jim Hughes.
In addition, there have been a number of India press reports including the
Times of India story, which may be picked up by some international wire
services. The other
two Indian press reports appear to have taken other discussions/background
briefings and unfairly attributed some quotes to Wade.  We can expect
additional
media interest Monday.

FYI, Jim Hughes has indicated that Ken Lay wants to advise the US Ambassador
before drawing the securities, so the probable timing for the draw is Monday
night
or Tuesday India time.

John

                    01/07/2001
                     Reuters English News Service
                     (C) Reuters Limited 2001.

                     BOMBAY, Jan 7 (Reuters) - The Indian government has
asked the western state of
                     Maharashtra to work out ways to pay outstanding dues to
U.S. energy giant Enron Corp,
                     media reports said on Sunday.

                     Enron has threatened to invoke letters of credit (LC)
and the federal government's counter
                     guarantee.

                     "The state government has to work on the issue," the
Press Trust of India said, quoting
                     unnamed official sources.

                     The Economic Times on Sunday said that the lenders to
Enron's local unit, Dabhol Power
                     Company, were meeting on Tuesday in New York to discuss
the inability of the
                     Maharashtra State Electricity Board (MSEB) to clear its
dues.

                     "As a result of MSEB's mounting dues Enron said it would
be forced to invoke the LC," the
                     newspaper said.

                     The report said the MSEB had outstanding dues worth 2.62
billion rupees ($56.15 million).

                     Enron's local unit said on Friday it will lower tariffs
from next month in a bid to defuse
                     criticism that it charges higher rates for the
electricity it produces in Maharashtra state.

                     Last month, the Maharashtra government decided to review
the rate at which it buys power
                     from Enron's Dabhol Power, saying the high cost was
threatening its finances.

                     Enron is spending about $1.9 billion to build a facility
to generate 2,184 MW of electricity.

                     India, which needs to generate an additional 100,000 MW
of power within the next decade
                     to meet growing demand, is desperate to attract foreign
capital. But after nearly a decade of
                     liberalisation, Enron is among the few private power
companies to begin generating power
                     in India.

FIs in U.S. press panic button as MSEB fails to pay Enron
                     S. Balakrishnan

                     01/07/2001
                     The Times of India
                     Copyright (C) 2001 The Times of India; Source: World
Reporter (TM)

                     MUMBAI: Financial institutions in the U.S. have pressed
the panic button with Maharashtra
                     State Electricity Board (MSEB) defaulting on payments
for electricity it has purchased from
                     the Enron subsidiary, Dabhol Power Corporation (DPC).
The board owes DPC Rs 262
                     crores of which Enron expected Rs 114 crores would be
paid by January 6. The board has
                     thrown its hands up in the air saying that it is simply
in no position to effect the payment.
                     The situation has been vastly complicated with chief
minister Vilasrao Deshmukh plainly
                     refusing to bail out MSEB.

                     It is learnt that major lending institutions have
convened a meeting in New York on January
                     10 to decide a course of action to compel MSEB to cough
up the money. Indian lead
                     financial institutions__including IDBI, SBI and ICCI,
who have a collective exposure of $1.2
                     billion__ have also been asked to send their
representatives for the meeting. If MSEB does
                     not pay up by then, the institutions may decide to
invoke the letter of credit. The implication
                     is that lending institutions may seize MSEB's accounts
with them and adjust the monies
                     against the dues payable to DPC.

                     It is learnt that Enron has informed the U.S. embassy of
the intransigent attitude adopted by
                     MSEB and the state government. Incidentally, Enron was a
contributor to U.S.
                     president-elect George W. Bush's election campaign.

                     Sources close to Enron said the company might be willing
to restructure the power
                     purchase agreement (PPA) provided MSEB does not default
on its payments. But the
                     restructuring of the PPA may not be an easy task since
it will require the endorsement by
                     the Central Electricity Authority and the Maharashtra
Electricity Regulatory Commission.

                     The sources said the defaulting by MSEB and the stance
adopted by Mr Deshmukh will
                     have serious implications since a large number of world
financial institutions__like
                     Citibank, ABN Amro, Bank of America, apart from the
governments of the U.S., Belgium and
                     Japan__have financial stakes in the 2100 MW project. The
defaulting will also harm the
                     interests of several Indian financial institutions who
have lent money for the controversial
                     venture.

                     Enron is hoping that the BJP-led government at the
Centre may persuade Mr Deshmukh to
                     defuse the crisis. But if ultimately no payment is
forthcoming, Enron may act tough and
                     invoke the guarantee and counter guarantee given to the
project by the state and the central
                     governments respectively.

                     The deal with Enron was signed by Sharad Pawar when he
was the chief minister in the
                     early nineties. It was first scrapped and later
enthusiastically endorsed by the Shiv
                     Sena-BJP coalition which came into office in 1995. It is
learnt that Mr Deshmukh has been
                     asked by the Congress high command to adopt a tough
stand so as to embarrass Mr
                     Pawar__who is now in the Nationalist Congress Party__the
Sena and the BJP.

                     It is learnt that state finance minister Jayant Patil
informed Enron representatives that the
                     current situation was the outcome of coalition politics.
An Enron official countered this by
                     pointing out that a coalition of lending institutions
was involved at the other end of the table.

Enron ready to renegotiate Dabhol deal
                     Our Corporate Bureau MUMBAI

                     01/08/2001
                     Business Standard
                     1
                     Copyright (c) Business Standard

                     US energy major Enron is prepared to renegotiate its
deal with the Maharashtra
                     government on the controversial Dabhol Power project,
but has emphasised that the new
                     deal cannot be a unilateral one.

                     This is the first time that Enron has publicly spelt out
its stand on the issue. Enron India
                     managing director K Wade Cline said, "The deal cannot be
a unilateral one. MSEB
      (Maharashtra State Electricity Board) must continue to pay us for the
power purchased. We
      should also be allowed to continue operating our power station at
Dabhol. Obviously, it
      must be a deal that works."

                     The state government, Cline said, must remember that
just as it was important for it to sell
                     a deal to its various constituencies, it was important
for Enron to be able to sell it to its
                     various stakeholders.

                     "A renegotiated deal will mean that we will have to
convince the gas suppliers to rework the
                     agreement that we have signed with them. It also means
that we will have to convince our
                     lenders," Cline added.

                     The $3-billion project has an equity component of $1
billion and a debt component of $2
                     billion. Cline pointed out that the entire equity as
well as $1.6 billion in debt had already
                     been brought in. Domestic lenders like ICICI, IDBI and
SBI have contributed $1.2 billion.

                     "The Indian government has a huge exposure to this
project through the financial
                     institutions. The governments of Japan, Belgium and US
too have a stake in the project as
                     banks and export credit agencies of these countries have
a huge exposure," he said.

The Economic Times Online
 Printed from www.economictimes.com -> home -> back

 Dabhol phase II in danger as arbitration looms

 Bodhisatva Ganguli & Girish Kuber
 MUMBAI
         THE MAHARASHTRA State Electricity Board's inability to pay the
Enron-promoted Dabhol
         Power Company is rapidly emerging as a threat to the viability of
phase II of the Dabhol
         project.

 The project involves a generating capacity of 1,400 MW and an LNG terminal
of five million tonnes.

 This is because there is an increasing possibility that the dispute over
phase I may end up in
 arbitration courts if the MSEB continues to fail to pay up and the state
government refuses to bail out
 the ailing electricity board. As a result, lenders may stop disbursing funds
for phase II.

 Enron India,s managing director K Wade Cline said on Saturday evening that
international arbitration
 was a real possibility.

 The PPA allows for arbitration in case a dispute cannot be resolved through
negotiations. Enron
 officials say they have made no headway so far in talks with the MSEB or the
state government.
 Enron is also considering invoking the letter of credit and the state
government guarantee in order to
 recover its dues.

 We have no alternative since if we don,t get paid, then our lenders are
saying that they won,t fund
 phase II, Cline said. If the Maharashtra government does not pay then the
central government,s
 counter-guarantee could be invoked.

 At a meeting on Friday evening, the MSEB is reported to have asked the state
government to provide
 it a subsidy of Rs 130 crore per month. However, the Maharashtra Chief
Minister, Vilasrao Deshmukh
 is said to have flatly rejected MSEB,s request.

 The Maharashtra cabinet is meeting again on Monday evening. The cabinet will
also discuss the
 formation of a committee to review the project.

 The lenders to the project are meeting in New York on Tuesday, January 9, to
take stock of the
 situation arising out of MSEB,s failure to pay part of the bill for October
and the entire bill for November
 amounting to a total of Rs 262 crore.

 The project,s lenders are reported to be extremely concerned about the
viability of the second phase of
 the project in view of MSEB,s failure to pay for power bought from the first
phase.

 Cline said that of the total second phase project cost of $1.89 billion only
about $400 million of debt
 remained to be disbursed. About 80 per of the construction is complete and
95 per cent of the
 machinery is on site.

 , The Economic Times Online. All rights reserved.


Richard,

When you get a minute I would like to catch you up  on these issues.  I think
it is appropriate to get outside counsel to look at the two Westinghouse
issues we have.

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 10/16/2000 08:40
AM ---------------------------

Scott Laidlaw@ENRON_DEVELOPMENT
10/13/2000 07:21 PM
To: Ben F Jacoby@ECT, Kay Mann@ENRON, John
Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David K
Bargainer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brian D
Barto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dan
Shultz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Matthew
Tezyk/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Normand/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mike
Coleman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bruce
Golden/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mitch Robinson@Enron
cc:

Subject: siemens westinghouse damaged generator

everyone - greetings.

the attached letters are drafts for your review and comment.  we'll clean up
the transmittal with letterhead at time of sending.

our intent is to send these two letters to siemens westinghouse asap.

plz respond with comments asap.

regards.  scott.


David,

Further to your earlier email I am pleased to attach the following documents
for you to draw up blacklined versions of the US versions of the PA and ETA
you distributed earlier:

PA- version 9 that was sent to Enron on 20 July 1999, version 10
incorporating comments from the meeting between Clifford Chance and Justin
Boyd and myself, and a mark up showing
the changes between the two.

ETA- version 7 that was sent to Enron on 20 July 1999, version 8
incorporating comments from the meeting between Clifford Chance and Justin
Boyd and myself, and a mark up showing
the changes between the two.

Please use version 10 of the PA and version 8 of the ETA for your blackline
for us.

Please let me know if you need an alternate format of document for your
computer systems.

I look forward to hearing from you.

Kind regards, Edmund.

 - 7sgl10!.DOC
 - 7sgl09!.DOC
 - 7sglRED.DOC
 - 83#207!.DOC
 - 83#206!.DOC
 - 83#2RED.DOC


I asked Chris to forward you this information in response to data request
Number 8.  As I mentioned, before EPMI requests confidential treatment of
this information.  This information is for the entire United States, not for
the Western interconnect.  Please let us know if you need this information
for just the Western Interconnect.  I will be in Washington DC for the next
few days so if you need to reach me call me on my cell phone at 503-807-0929.
---------------------- Forwarded by Mary Hain/HOU/ECT on 09/11/2000 07:54 PM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  Chris Stokley                           09/11/2000 06:17 PM

To: Brian.Harrington@ferc.fed.us, michelle.veloso@ferc.fed.us
cc: Mary Hain/HOU/ECT@ECT
Subject: Re: Enron Data Responses for FERC's Bulk Power Investigation

Please view the summary tab on each worksheet for the final figures.

If you have any questions/concerns or need additional information, please let
me know.

Chris
503-464-8219

Mary Hain
09/08/2000 06:09 PM
To: Brian.Harrington@ferc.fed.us, michelle.veloso@ferc.fed.us
cc: Christi Nicolay, Bill Williams/PDX/ECT@ECT (bcc: Chris Stokley/HOU/ECT)
Subject: Enron Data Responses for FERC's Bulk Power Investigation

Attached find Enron Power Marketing, Inc., and Enron Energy Services'
responses to the Staff's data requests in the Federal Energy Regulatory
Commission's Bulk Power Investigation.  These responses assumes that you sent
separate data requests to Enron Wind, so they do not include that
information.  The answers also assume you are requesting this information for
California (and therefore the Western interconnect) only.  Please let me know
if these assumptions are incorrect.

If you were requesting Eastern Interconnect information you need to contact
Chrisit Nicolay at the above E-mail address.  Enron requests confidential
treatment of response numbers 2, 3, 4, 6, and 8 pursuant to 18 C.F.R. Section
388.112.  Due to the short turn around time for these requests we were unable
to respond to question 8 and to provide the Unit Identifier requested in
question 4.  We hope to be able to provide this information on Monday.
Please call me with any questions at (503) 464-8862.  I will be traveling on
Monday, so if you call then, call my cell phone at 503 807-0929.


Here is the revised expense report.

Thanks,
Kathy


Guys, attached you will find a draft org memo that I anticpate going out on
Thursday.  I appreciate your patience.  Please give me any comments ASAP
(only major issues).

Brian/Tim, I assume that we need a communication strategy to HPL employees
before this memo goes out - please advise.

Please keep this note confidential until release.

Regards
Delainey


FYI

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/31/2000
05:28 PM ---------------------------

	Enron North America Corp.

	From:  Sherri Sera @ ENRON                           03/31/2000 05:15 PM

To: Gene Humphrey/HOU/ECT@ECT, Lou L Pai/HOU/EES@EES, Ken Rice/Enron
Communications@Enron Communications, Andrew S Fastow/HOU/ECT@ECT, Vince J
Kaminski/HOU/ECT@ECT
cc: Bert Frazier/HOU/ECT@ECT, Karen Owens/HOU/EES@EES, Jewel Meeks/Enron
Communications@Enron Communications, Mercedes Estrada/Enron
Communications@Enron Communications, Bridget Maronge/HOU/ECT@ECT, Shirley
Crenshaw/HOU/ECT@ECT
Subject: Proposed Darden Interview Schedule - April 18

Below is proposed schedule for the Darden case video-taped interviews; an
hour has been scheduled for each of you (except Vince, for whom 1-1/2 hours
has been requested), however, you may be finished in less time.  The location
is yet to be determined, but will most likely take place in a vacant office
of 50M.

Please let me know of any conflicts with this proposed schedule.  I'll send
along additional information as it becomes available.  Thank you and have a
nice weekend.  SRS

8:00a  Gene Humphrey

9:00a  Lou Pai

10:00a  Ken Rice

11:00a  Andy Fastow

12:00p  Break

2:00p  Vince Kaminski

3:30p  Jeff Skilling


Cynthia - I think you have told us what we need to know.  I assume
"monitoring" will be no burden since you expect no movement.  Our arrangement
with Enron does not require you to undertake any efforts on our behalf that
you would not otherwise take on Enron's, so I won't ask you to start a new
file on this.

Will the bill die at the end of the year if there has been no action or will
it stay alive into the next Congress?

Thanks for your kind thoughts on our IPO and thanks for steering me to Sen
Schumer's office last week.  We will keep  up that relationship now that it
is established.

From: Cynthia Sandherr@ENRON on 10/12/2000 04:12 PM CDT
To: Kathleen E Magruder/HOU/EES@EES
cc: Joe Hillings/Corp/Enron@Enron, Marc Manly/HOU/EES@EES, Richard
Shapiro/NA/Enron@Enron, Chris Long/Corp/Enron@ENRON, mpate@bracepatt.com, Tom
Briggs/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Mary Hain/HOU/ECT@ECT, Jeff
Dasovich/NA/Enron@Enron, Allison Navin/Corp/Enron@ENRON
Subject: Re: Important Legislation Watch:  H.R. 5415

Kathleen:  We will be happy to monitor this bill for you.  However, you
should know that this legislation is going nowhere this Congress.  The member
introducing it, Congressman Filner (D-CA), is not a member of the Ways and
Means Committee to which the bill was referred.  Further, as a Democrat, even
if he were a Ways and Means Committee Member, the bill would go nowhere
absent support from a Republican Committee Member (which he does not have.)
Finally, there is only a small outside chance that this Congress will even
consider a tax package at all this year.  The possible tax package which has
been circulated does not contain this language.  Interestingly, this
Congressman has also recently introduced separate legislation (H.R. 5131) to
give FERC retroactive rate-making authority in order to roll back wholesale
prices and refund the overcharges to consumers.  Seems he's on a roll!!!!  As
a member from the San Diego area, he is mostly introducing these type of
bills for press purposes.  Hope you are doing well and Congratulations on the
success of the IPO!

	Kathleen E Magruder@EES
	10/12/2000 10:09 AM

		 To: Cynthia Sandherr/Corp/Enron@ENRON, Joe Hillings/Corp/Enron@ENRON
		 cc: Richard Shapiro/NA/Enron@Enron, Marc Manly/HOU/EES@EES
		 Subject: Important Legislation Watch

Please let me know what action, if any, is Enron taking on this piece of
legislation.  If you are  monitoring, would you please add me to your
distribution list?

Thanks
---------------------- Forwarded by Kathleen E Magruder/HOU/EES on 10/12/2000
10:07 AM ---------------------------

	Enron Energy Services

	From:  Vickie Gross                           10/11/2000 06:01 PM
	Phone: n/a

To: Steve Nolan/HOU/EES@EES, Jim Malone/TNPC/EES@EES, Bill Jacobs, Gene
Lockhart/HOU/EES@EES, Kathleen E Magruder/HOU/EES@EES, John
Henderson/HOU/EES@EES, Marc Manly
cc:
Subject: Important Legislation Watch

Per the attached:

HR Bill 5415 was introduced in the U.S. House of Representatives and designed
to impose a windfall profits tax on wholesale electric energy sold in the
Western System Coordinating Council (WSCC).  The Act referred to as the
"Public Oversight of Wholesale Electric Rates Act" or "POWER Act" attempts to
impose an excise tax of 100% of the windfall profits received by a seller of
power in the WSCC.  The windfall profit tax would be calculated on the excess
of the energy rate sold over the regulated price.  This tax would be
effective for sales of electricity sold after June 1, 2000.  While this tax
would be imposed on the wholesale seller, the amount passed to the retail
consumer would be inclusive of the new tax.


Please take a moment to review the attached memo introducing Mike Terraso's
Environment, Health & Safety Organization and Environmental Strategies Team.
Also attached, is an organizational chart for your use.

Thank you.


FYI - For Becky and Melinda

 -----Original Message-----
From: 	Hernandez, Ana Maria
Sent:	Wednesday, October 03, 2001 3:26 PM
To:	Linnell, Elizabeth
Subject:	RE: 413/106799

Elizabeth

An entry will be posted today to move $313,392.70 into cost center 0011/100108.

Thanks
Ana

 -----Original Message-----
From: 	Linnell, Elizabeth
Sent:	Tuesday, October 02, 2001 1:17 PM
To:	Hernandez, Ana Maria
Subject:	RE: 413/106799

Ana - Thanks for keeping me updated on the $ moves.  I've been working with HR to have Rebeccan and Melinda moved to another cost center effective 10/1, so that should be taken care of.
Thanks,
Elizabeth

 -----Original Message-----
From: 	Hernandez, Ana Maria
Sent:	Tuesday, October 02, 2001 1:16 PM
To:	Linnell, Elizabeth
Subject:	RE: 413/106799

Thanks Elizabeth.  I will let you know how much I am moving over into your cost center.  Also, before October payroll runs, I need to work with you or whomever to make sure that the employees in that cost center are moved over to 0011/100108.

Thanks
Ana

 -----Original Message-----
From: 	Linnell, Elizabeth
Sent:	Tuesday, October 02, 2001 1:12 PM
To:	Hernandez, Ana Maria
Subject:	FW: 413/106799

Ana Maria - Per Karen's request, here is the message I'd sent last week to Carol.  Please let me know if you need any further information,
Elizabeth

 -----Original Message-----
From: 	Linnell, Elizabeth
Sent:	Tuesday, September 25, 2001 1:51 PM
To:	Carter, Carol
Cc:	West, Terry; Derr, Dawn; Digilormo, Susan
Subject:	413/106799

Carol - After exchanging lots of e-mails, and Rick speaking with Julie Gomez, it's been agreed that the costs applied to 413/106799 should be moved to 0011/100108.

Please let me know if you need any further information.

Thanks!