TO:  JGS Faculty & Staff

Please read following from Library Staff and Campus Police:

>>Subject: Library Incident (fwd)
>>
>>FYI-
>>Please read the attached e-mail from Campus Police.
>>
>>Sandi
>>
>>
>>_____________________________________________________________________
>>
>>Sandi Edwards
>>Head of Reference Services              phone:  713-348-2504
>>Fondren Library  MS-44                  fax:    713-348-5859
>>Rice University                         e-mail: edwards@rice.edu
>>6100 Main St.                           http://www.rice.edu/Fondren/
>>Houston, TX  77005-1892
>>
>>
>>---------- Forwarded message ----------
>>Date: Fri, 25 Jan 2002 01:09:44 -0600 (CST)
>>From: senter@rice.edu
>>To: hatfiel@rice.edu, bentley@rice.edu, lowman@rice.edu, martin@rice.edu,
>>      dmarshal@rice.edu
>>Cc: reiter@rice.edu
>>Subject: Library Incident
>>
>>All,
>>
>>FYI- On Wednesday an unknown male suspect entered the building around 4:40 pm
>>posing as a carpet cleaner. The suspect fits the description, and uses the
>>same mode of operation of a suspect that I informed you about previously.
>>Sgt. Reiter will be handling the case. Sgt. Reiter can be reached at the
>>station between 2pm and 10pm Mon-Fri, or email: reiter@rice.edu, if you have
>>any information that may be of help to the case.
>>
>>The suspect was a male/black approximately 5'5" tall, in his mid 30's,
>>wearing a brown v-neck sweater and black pants. The suspect also wears
>>glasses.
>>
>>I also want to take a moment to remind everyone that in the event that you
>>spot a suspicious person or a suspect that you postively identify, please do
>>not confront them. Maintain a discreet visual on the person and get a good
>>look at his/her race, gender, and clothing. Immediately call the police and
>>stay on the line with the police dispatcher. Should the suspect move his/her
>>location in the building you will be able to relay that information to the
>>dispatcher who will relay it to responding officers.
>>
>>Thanks again for all your continuing support of our collective effort. Let's
>>all be safe in these types of situations.
>>
>>
>>Dennis Senter
>
>

Suzana G. Vazquez
Staff Assistant
Jesse H. Jones Graduate School
      of Management
ramos@rice.edu
(713) 348-3736


If you are scheduled to attend this conference and are unable to attend, it is imperative that you send someone in your place.
Conference and interview schedules specific to the Enron team and conference shirts will be distributed at this time.

Please contact Meliza Evanson (x5-7855) or myself (x5-7491) if you have any questions.  See you there!


Kathy & Chris:

I just received the nomination from Brazos for the Ponderosa Pine plant. For Monday & Tuesday (4/8 & 4/9) they are estimating to run the plant at a level that will burn approximately 43,000 MMBtu/day.

If you have sold Monday's gas, don't change anything. I probably would not sell Tuesday's gas just for the sake of trying to stay on the good side of Lonestar.

Call me at (248) 813-1063 if there are any questions.

MM


Hi Mrs. Barker,

Sorry it's taken me so long to respond regarding the party Saturday (Lisa and I only got back into town a couple days ago from visiting Emily in London).  I had actually already purchased concert tickets for Saturday night, but am currently seeing if I can find anyone willing to buy them from me.  If I am successful in pawning these things off I will be present and accounted for to help Kelly and the gang celebrate.  I will be sure to take your number home with me and give you a call tomorrow to let you know my status either way.

Thanks again for everything,
Susan


Enron May Issue More Stock to Cover Obligations
The Wall Street Journal, 10/24/01
Enron Tries To Dismiss Finance Doubts
The New York Times, 10/24/01
Surge in Optimism Prompts Straddles In Enron and Cisco
The Wall Street Journal, 10/24/01
Lay tries to assure Enron investors
Houston Chronicle, 10/24/01
OBSERVER - Busy signal.
Financial Times (U.K. edition), 10/24/01
USA: Enron mulls ways to cover portfolio shortfalls-WSJ.
Reuters English News Service, 10/24/01
Enron May Issue More Stock to Cover Obligations
Dow Jones Business News, 10/24/01
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Los Angeles Times, 10/24/01
United States
The Globe and Mail, 10/24/01
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
The Wall Street Journal, 10/24/01
U.S. Energy Giant Weighs a Move To Pull Out of India
The Asian Wall Street Journal, 10/24/01
UK: LNG delays could spawn shipping crisis - analysts.
Reuters English News Service, 10/24/01
INDIA PRESS:British Gas Seeks ONGC Deal For Field Control
Dow Jones International News, 10/24/01
BG Offers ONGC Brazilian Assets to Get Managing Rights in India
Bloomberg, 10/24/01

House stimulus bill would give billions to huge companies; Senate Democrats present alternative
Associated Press Newswires, 10/23/01
Wechsler Harwood Halebian & Feffer LLP Announces Class Periods
PR Newswire, 10/23/01
Stock Analysis/Call In
CNNfn: Markets Impact, 10/23/01

Economy
Enron May Issue More Stock to Cover Obligations
By Rebecca Smith and John R. Emshwiller
Staff Reporters of The Wall Street Journal

10/24/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created. Covering such shortfalls could involve issuing additional Enron shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
During the past week, shares of the energy-trading giant have dropped more than 40%. Early last week, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. The company also disclosed a $1.2 billion reduction in shareholder equity for the quarter as a result of terminating certain transactions related to a partnership that for a time was headed by Enron Chief Financial Officer Andrew S. Fastow. In July, Mr. Fastow ended his connection to the partnership in the face of growing concerns by analysts and major investors. On Monday, Enron disclosed that the Securities and Exchange Commission was looking into the transactions related to Mr. Fastow. Enron has said its dealings with the partnership were proper.
The turmoil of the past several days prompted Enron to schedule a conference call yesterday morning with Wall Street analysts and others in an effort to reassure investors. Enron Chairman and Chief Executive Kenneth Lay said while "we are extremely disappointed with our stock price . . . our businesses are performing very well." Mr. Lay and other executives said Enron has adequate liquidity to meet its needs.
Mr. Fastow, the chief financial officer, took part in the conference call. But neither he nor Mr. Lay would answer any questions concerning the Fastow-related partnership, which was known as LJM2 Co-Investment LP. Mr. Lay said the SEC was in the midst of an inquiry concerning that partnership arrangement, which has raised conflict-of-interest questions among analysts and others. Mr. Lay cited shareholder suits filed recently as another reason not to discuss the partnership questions. Mr. Lay said he was "very concerned about the way Andy's character has been loosely tossed about." He added "we continue to have the highest faith and confidence in Andy."
Internal LJM2 documents indicate that Mr. Fastow and perhaps a handful of fellow Enron officials made millions of dollars in management fees and capital increases from running the partnership. Billions of dollars of Enron assets and stock were involved in LJM2-related transactions, according to Enron SEC filings.
During the conference call, analysts -- even some who have been longtime Enron fans -- challenged executives about the Fastow partnership arrangement and the company's often opaque financial reports. "There's the appearance you are hiding something," said Goldman Sachs analyst David Fleischer. "You need to do everything in your power to demonstrate to investors that your dealings are above board."
Mr. Lay responded, "We're trying to be as transparent as we can."

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

Business/Financial Desk; Section C
Enron Tries To Dismiss Finance Doubts
By FLOYD NORRIS

10/24/2001
The New York Times
Page 1, Column 5
c. 2001 New York Times Company

Enron has ample access to cash, the company's chief executive said yesterday as he assured investors that there was no need for additional write-offs stemming from unusual financing activities.
In a conference call with investors that was hastily scheduled after Enron's stock plunged on Monday, the chief executive, Kenneth W. Lay, strongly defended the company's chief financial officer and said there was no conflict of interest involved in transactions that the Securities and Exchange Commission was looking into.
But he refused to go into detail on the transaction that Enron made with partnerships run by Andrew S. Fastow, the chief financial officer. In addition, Mr. Fastow, while declaring that Enron ''expects to continue to have sufficient liquidity to meet normal obligations,'' declined to answer any questions about it.
The conference call, which began just as trading opened on the New York Stock Exchange, at first seemed to be reassuring investors. Within minutes of the beginning of the call, the share price rallied to $23.25. But it soon began falling, and ended the day down 86 cents, at $19.79. The day's low of $19.62 was the lowest since Jan. 12, 1998, and was down 78 percent from the high set by the stock in the summer of 2000.
Until recently, most investors focused on the company's reported operating earnings, which showed good results as it became a leading player in energy markets. But the focus has shifted to a series of transactions, some involving off-balance-sheet financing. One, involving partnerships controlled by Mr. Fastow, led to a $1.2 billion reduction in shareholder equity that raised concern last week and led to S.E.C. inquiries that the company disclosed on Monday.
One of the company's strongest supporters has been David Fleischer, an analyst at Goldman, Sachs. But he told Mr. Lay on the call yesterday that Enron had to be more forthcoming with information. ''There is an appearance that you are hiding something,'' he said.
After the call, Mr. Fleischer expressed disappointment. ''They've engaged in a number of transactions that one wonders about, and that are hard to understand,'' he said in an interview. ''They have not been as forthcoming in explaining them'' as is needed, he said. But he said he was still recommending the stock. ''I don't think accountants and auditors would have allowed total shenanigans,'' he said. ''In the absence of total shenanigans going on at this company, there is tremendous value here.''
Mr. Lay cited the S.E.C. inquiries as a reason for not discussing details on the transactions involving the partnerships that were controlled by Mr. Fastow. But he emphasized that both he and the company's board ''continue to have the highest faith and confidence in Andy.''
Mr. Lay said that auditors from Arthur Andersen had carefully reviewed Enron's reporting in conjunction with another off-balance-sheet vehicle, called Marlin. That company owns one-third of Azurix, an Enron subsidiary that owns Wessex, a British water utility. The auditors ''have determined there is no write-down required,'' he said under questioning by Richard Grubman of Highfields Capital Management, a money management firm.
Mr. Grubman said that Marlin owed almost $1 billion on debt that was guaranteed by Enron but had no assets other than the Azurix stake. Noting that Enron had paid about $300 million to buy a third of Azurix from public shareholders and had since taken write-downs on its investment in Azurix, Mr. Grubman asked why the company was not setting up reserves to cover its exposure on that debt, which under a complicated arrangement could end up being satisfied through the issuance of Enron shares.
Mr. Lay said that no action was needed but declined to address details. Eventually he cut off Mr. Grubman. ''I know you're trying to drive the stock price down, and you've done a pretty good job of it,'' Mr. Lay said. ''But let's move on to the next question.''
Mr. Fastow said the company was having no problem issuing commercial paper and had $1.85 billion in such debt outstanding. He said it was backed by $3.35 billion in bank lines of credit, of which $1.75 billion will expire next May if it is not renewed.
Mr. Lay said he was sorry about ''the misunderstanding'' that resulted when his brief mention of the $1.2 billion reduction in shareholder equity in a conference call last week was not noticed by some analysts. That reduction would have been apparent if the company had released its balance sheet with the earnings report, but it did not. He said the company would consider releasing balance sheets with earnings reports in the future, but made no promises.
The large reduction in shareholder equity did not affect reported earnings, and so was not in the earnings release. But it raised concerns that some of the sophisticated financing techniques used by the company might be effectively keeping losses off the earnings statement. The S.E.C. is expected to look into whether the accounting for that transaction was correct.
After one questioner on the call said it would be easier to understand Enron if it released financial statements for the special purpose vehicles that were set up to enter into such transactions as Marlin, Mr. Lay said the company ''will look into providing'' such statements.

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

Options Report
Surge in Optimism Prompts Straddles In Enron and Cisco
By Kopin Tan
Dow Jones Newswires

10/24/2001
The Wall Street Journal
C14
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Bullish calls traded heavily early as investors, encouraged by the ability of stocks to shrug off anthrax scares, bought calls to replace stock holdings and to ride any rallies.
At one point, the ratio of equity calls traded to puts at the Chicago Board Options Exchange fell to 0.28, compared with 0.68 Friday and Monday's three-month closing low of 0.42.
The surge of optimism -- also evident in the CBOE market-volatility index, or VIX -- prompted traders to begin covering the downside, just as the widely watched stock indexes began to retreat. Contrarians believe the CBOE equity put/call ratio sends a bearish signal when it is below 0.40. By the session's end, the ratio was at 0.49.
Buyers drove robust call trading in Cisco Systems, a maker of Internet switching equipment, and the implied volatility also rose, noted a trader at Letco, the CBOE specialist for Cisco options. One investor bought thousands of January 20 calls, paying about $115 a contract for the right to buy 100 shares of the stock at $20 a share until mid-January. At 4 p.m. in Nasdaq Stock Market trading, Cisco was down 42 cents at $16.41. The January 20 calls fell 10 cents to 90 cents on CBOE volume of 27,048 contracts, while 6,861 contracts traded at the Pacific Exchange.
The implied volatility of Enron's near-month options remains high, even as the energy concern's executives sought to calm investors and address their concerns, following news that the Securities and Exchange Commission is looking at the Houston company.
The volatility spike makes Enron a viable candidate for investors looking to sell straddles -- selling calls and puts with the same strike price and expiration. In particular, Enron's at-the-money January 20 straddles offer rich premiums, said Lillian Seidman of the Seidman/Skupp options team at Miller Tabak & Co., of New York. With Enron down 86 cents at $19.79 in New York Stock Exchange composite trading, selling January 20 straddles would earn an investor about $750 a straddle -- a rich premium that could offset the cost of buying stock.
To be sure, selling straddles can be risky and the losses significant if the stock, which already had fallen about 38% in a week, makes a big move in either direction before the straddles expire. Investors typically buy straddles if they expect a big move in the underlying stock, while sellers pocket premium and hope the stock remains in a tight trading range.

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

Oct. 24, 2001, 12:05AM
Houston Chronicle
Lay tries to assure Enron investors
Company's credibility questioned
By LAURA GOLDBERG
Copyright 2001 Houston Chronicle
Enron had safeguards in place to protect shareholder interests while its chief financial officer ran two investment partnerships that did business with Enron, the company's chief executive officer said Tuesday.
The Houston-based energy trader has been caught in a storm of criticism over Chief Financial Officer Andrew Fastow's former role with two partnerships, LJM Cayman and LJM2 Co-Investment, that entered into complex financing and hedging arrangements with Enron.
Enron disclosed Monday that the Securities and Exchange Commission opened an "informal inquiry" into transactions between Enron and the two partnerships.
It declined to say if the SEC is looking into other transactions.
After the disclosure, Enron's stock fell almost 21 percent Monday. Tuesday it dropped another 86 cents to close at $19.79.
The news brought to the forefront ongoing complaints from some on Wall Street that some of Enron's financial mechanisms are difficult to understand and that Enron doesn't provide detailed enough financial data about its performance.
Tuesday morning, Enron Chairman and CEO Ken Lay held a conference call for investors and analysts, aimed at addressing their concerns.
It remains to be seen whether he succeeded, but based on the tenor of questions during the call, it's doubtful he achieved that result.
David Fleischer, a Goldman Sachs analyst, told Lay that the company's credibility was being severely questioned and called on him to do everything in his power to explain to investors that Enron's dealings are aboveboard.
"I, for one, find the disclosure is not complete enough for me to understand and explain all the intricacies of all those transactions," he said.
Lay told callers he was limited in speaking about the LJM partnerships because of the SEC inquiry.
He did say Enron was aware an "inherent conflict of interest" would result from its chief financial officer running investment partnerships doing business with Enron.
In response, Enron set up procedures, which Lay said were rigorously followed, to ensure shareholder interests wouldn't be compromised.
"There was a Chinese Wall between LJM and Enron," he said, adding that Enron wasn't obligated to do deals with the LJM entities and did so when it was in Enron's best interest.
Lay and Enron's board continue to have the "highest faith and confidence" in Fastow, he added.
Fastow resigned his roles with the LJM entities in June after criticism from Wall Street.
Enron ended its financial relationships with the partnerships.
It took a $35 million charge in the third quarter and reduced shareholders' equity by $1.2 billion as a result.
During the call Enron executives also addressed other issues.
They stressed that Enron expects to continue having sufficient liquidity to carry out normal operations and took questions about two financing vehicles, Whitewing and the Atlantic Water Trust, that it set up so it could invest in certain assets without issuing debt or Enron shares at the time of the investments.
If Enron should lose its current investment-grade quality debt rating, commitments made as part of those financing vehicles could trigger steps that would cause the value of Enron's current outstanding shares to become diluted.
Jeff Dietert, an analyst with Simmons & Co. International in Houston who follows Enron, was among those on the call. He said afterward he received some new information about Enron's lines of credit.
"I had hoped to get a little bit more out of the call," he said.

OBSERVER - Busy signal.

10/24/2001
Financial Times (U.K. edition)
(c) 2001 Financial Times Limited . All Rights Reserved

Busy signal
Enron should know plenty about bandwidth.
Through Enron Broadband Services, the giant energy company boasts about "developing an open and efficient market for bandwidth that provides liquidity, reliability, price transparency and guaranteed service levels".
But there were no guarantees about service levels yesterday, when Enron held a conference call to "address investor concerns" about its financial dealings.
Despite the bandwidth expertise, the call - the first time that Andrew Fastow, chief financial officer, has faced questions about the transactions from analysts - was available to just 300 lucky telephone diallers. A live webcast of the call was accessible on Enron's website, but without the chance to grill Enron brass.
Those investors and journalists who did make it through (some waited 20 minutes for their place at the party; others found their lines dropped mid-stream) heard volatile exchanges between analysts and company executives. An analyst chided for his part in lowering the company's share price was told by Ken Lay, Enron's chairman, that his question quota was up and it was time to move on.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

USA: Enron mulls ways to cover portfolio shortfalls-WSJ.

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 24 (Reuters) - Enron Corp. Treasurer Ben Glisan said the company thinks it can repay about $3.3 billion in notes sold by investment vehicles it created without having to issue more stock, the Wall Street Journal reported in its online edition on Wednesday.
Enron may need to come up with funds to cover potential shortfalls in those investment vehicles, which could involve issuing additional shares, thereby diluting the position of current shareholders, the report said.
The report, which cites a Tuesday interview with Glisan, said the notes were sold to investors during recent years by several entities and are coming due during the next 20 months. The entities are known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I Inc, the report said.
According to the report, Glisan said assets from those entities could be sold to pay off some of the notes. Enron is selling other assets, the report said. According to the newspaper, proceeds from those sales could go toward repaying the notes, which are ultimately guaranteed by Enron.
Glisan, according to the report, said it looks like asset sales will raise at least $2.2 billion by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Glisan said, according to the report. "But if we are wrong, we will issue equity."
According to the report, Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock.
Enron held a conference call on Tuesday, seeking to assuage investor concerns after U.S. regulators said they were looking into transactions involving the company's chief financial officer and its stock shed more than $10 billion in value over the past week.
Enron said on the call it can tap $3.35 billion from a credit line, suggesting it has enough liquidity to operate its core trading and marketing business, which can experience wide swings in cash flow, depending on commodity prices and market hedges.

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

Enron May Issue More Stock to Cover Obligations

10/24/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created, Wednesday's Wall Street Journal reported.
Covering such shortfalls could involve issuing additional Enron (ENE) shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

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

Business; Financial Desk
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Bloomberg News

10/24/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company

Enron Corp., the biggest energy trader, has asked Citigroup Inc. to arrange a $750-million loan, ensuring access to credit if the beleaguered company is cut off from money markets, say people familiar with the matter.
Enron's shares and bonds plunged after the firm said the Securities and Exchange Commission was probing its finances.
The Houston-based business, whose stock has fallen 75% this year amid concerns about failed investments, depends on a $3-billion commercial paper, or short-term debt, program to finance day-to-day operations.
As a second-tier commercial paper borrower, any ratings drop may cut off Enron from the commercial paper market and raise costs of short-term debt.
Enron shares dropped 86 cents to close at $19.79 on the New York Stock Exchange.

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

Report on Business: The Wall Street Journal
What's News
United States
Wall Street Journal

10/24/2001
The Globe and Mail
Metro
B9
"All material Copyright (c) Bell Globemedia Publishing Inc. and its licensors. All rights reserved."

Enron Corp. might have to come up with several hundred million dollars over the next 18 months to cover potential shortfalls in investment vehicles it created, treasurer Ben Glisan said. The possible shortfall related to about $3.2-billion (U.S.) in notes that related entities sold to investors since 1999, he said. Proceeds from those notes were invested in various Enron assets. Mr. Glisan said those notes come due over the next 18 months and Enron still hopes to sell enough assets to fully repay the notes. However, making up any shortfall with funds raised by selling stock has become more expensive as Enron's share price has plunged. Over the past week, shares of the energy trading giant have fallen more than 40 per cent.

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

Abreast of the Market
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
By Robert O'Brien
Dow Jones Newswires

10/24/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Stocks ended only slightly lower as the recently resilient market largely withstood the effects of dismal corporate profit statements.
Shares of drug maker Pharmacia fell $4.37, or 13%, to $38.39, after the company issued third-quarter results that topped Wall Street's forecasts, but also issued 2002 profit projections that left some analysts disappointed.
In fact, several drug companies saw their stock prices fall as investors responded to their quarterly profit statements. Shares of Bristol-Myers Squibb, for example, gave up 1.68, or 2.8%, to 58.02, American Home Products lost 1.40, or 2.3%, to 58.90, and Schering-Plough eased 74 cents, or 1.9%, to 38.17.
Shares of several insurance and reinsurance providers also pulled back in reaction to profit statements, with Everest Re falling 6.40, or 8.4%, to 69.50, and St. Paul dropping 93 cents, or 1.9%, to 49.25.
Power utility Exelon, Chicago, was set back 3.42, or 7.7%, to 41.08, after its third-quarter results topped forecasts, but drew critical comments from several analysts.
Nevertheless, even with the grim earnings outlook, investors showed continued reluctance to throw in the towel.
"Institutional investors are busy trying to gauge the sentiment in the market," Richard Cripps, market strategist at Legg Mason, said. "Their fear is that the market makes a four or five percent upside run very quickly, which is eminently possible, and they can't afford to miss it."
Some seasonal factors also have played a role in supporting stock prices recently. For many mutual funds, for example, their fiscal year concludes at the end of October. Some are doing what is called window dressing -- buying stocks that their investment disciplines say should be in their portfolio -- while others need to boost their overall exposure to the equities market.
Whatever the reason, the market has been making some big moves when prices have risen, and modest moves when they have declined. The Dow Jones Industrial Average, which ran up 172.92 points Monday, declined 36.95 points yesterday, a loss of 0.39%, to 9340.08.
The Nasdaq Composite Index declined 3.64 points, or 0.21%, to 1704.44. Volume levels showed some improvement over Monday's rather sluggish pace.
Investors haven't completely rolled over. In a handful of the situations in which their ire has been raised, they have lashed those stocks repeatedly. Shares of SBC Communications, one of Monday's disappointments, got punished again, falling 2.62, or 6.3%, to 38.78, and fell back in range of a 52-week low of 38.20, set June 26.
Consumer lender Providian Financial got sent to a fresh 52-week low, off 41 cents, or 8.3%, to 4.55. Enron, which has fallen on concerns about conflicts of interest in dealings among the company, a power marketer, and partnerships that were set up and run by its chief financial officer, dropped an additional 86 cents, or 4.2%, to 19.79, hitting a 52-week low intraday.
There were some winning profit statements. Shares of CSX, for example, rose 2.45, or 7.5%, to 35.19, after the Richmond, Va., rail-freight concern reported third-quarter earnings that, while they fell short of year-ago performance, nevertheless managed to top Wall Street's forecasts.
Vitesse Semiconductor (Nasdaq), a Camarillo, Calif., maker of integrated circuits used in high-bandwidth communications networks, added 43 cents, or 4.5%, to 9.99, even though the company's losses for its fiscal fourth quarter proved sharper than expected.
NetIQ (Nasdaq) dropped 4.23, or 14%, to 26.17, even though the Santa Clara, Calif., developer of networking software posted fiscal first-quarter results late Monday that topped what analysts had been looking for.
Chartered Semiconductor (Nasdaq) advanced 40 cents, or 2.1%, to 19.10. The Singapore chip foundry reported third-quarter results that showed a loss for the period, but nevertheless proved to be a little more encouraging than analysts had projected.
Shares of several cable-television operators moved higher. Charter Communications added 59 cents, or 4.5%, to 13.62, Comcast gained 40 cents, or 1.1%, to 36.82, and Cox Communications rose 44 cents, or 1.1%, to 40.15. Thomas Weisel Partners said that cable operators should benefit from SBC Communications' decision, revealed Monday with its quarterly results, to scale back the growth of its digital subscriber line service offering.
EarthLink (Nasdaq) slid 2.51, or 14%, to 14.85. The Atlanta Internet service provider issued stronger-than-expected third-quarter results, but also signaled that its customer growth had slowed.
AT&T Wireless increased 1.26, or 9.7%, to 14.20. The Redmond, Wash., provider of wireless communications services reported third-quarter results that topped what analysts had been looking for.
Several steelmakers moved higher following a ruling late Monday by the U.S. Trade Commission, which said it determined that domestic steelmakers have been significantly harmed by cheap imports; the ruling could lead to the erection of barriers limiting steel imports. USX-U.S. Steel Group gained 28 cents, or 1.9%, to 15.02, Nucor rose 1.05, or 2.5%, to 42.87, and AK Steel improved 41 cents, or 4.6%, to 9.31.
McKesson advanced 1.56, or 4.2%, to 38.95. The San Francisco drug distributor and health-care information technology provider posted stronger-than-expected fiscal second-quarter results.
Watson Pharmaceuticals fell 3.05, or 6%, to 48.11. UBS Warburg reduced its rating on the Corona, Calif., drug maker, and lowered its earnings projections for the company.
Furniture Brands dropped 2.04, or 8.9%, to 20.96. UBS Warburg cut its rating on the St. Louis furniture manufacturer, saying it believes the company has lost market share to rival manufacturers.

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

International News
U.S. Energy Giant Weighs a Move To Pull Out of India
Associated Press

10/24/2001
The Asian Wall Street Journal
9
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Following Enron Corp. U.S. energy company AES Corp. has turned to the Indian prime minister for help in settling its grievances with a state government.
In a letter to Atal Bihari Vajpayee, AES Corp.'s President Dennis W. Bakke said his company's determination to continue in India is being tested by the government of eastern Orissa state.
A copy of the letter, dated Oct. 1, was made available to the Associated Press.
AES operates two power plants in Orissa, holds 49% of the Orissa Power Generation Corp. and manages the main power distribution company in the state.
AES and Enron are the only major American power companies to make big investments in India since the government allowed foreign investment in the sector in the early 1990s.
In his letter, Mr. Bakke drew Mr. Vajpayee's attention to the "expropriation, repeated contract violations, intimidation . . . and direct interference with day-to-day management" by the state government and its agencies.

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

UK: LNG delays could spawn shipping crisis - analysts.
By Pete Harrison

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 24 (Reuters) - The transport chain supporting the global LNG industry will be finely poised in coming years between profitability and a crisis of oversupply if projects miss their deadlines, shipping analysts warn.
More LNG tankers than ever before are being constructed in the shipyards of the Far East, many of them ordered speculatively against anticipated demand, which might emerge later than scheduled.
"The issue is timing," Jarle Sjo, shipping equity analyst at Oslo-based investment bank First Securities told Reuters.
"Historically, LNG projects have been delayed - you can estimate at about six months - and if that happens it will probably get ugly in the short term," he added.
The world fleet of LNG tankers currently numbers 123, but will have swollen by about 37 percent by the end of 2004, according to shipping database Fairplay.
Gas industry analysts expect some LNG projects to be delayed as a result of the economic downturn, excess capacity at existing plants in Asia and a sharp fall in U.S. natural gas prices this year.
Svein Erik Amundsen, Managing Director of Norwegian shipping group Bergesen, said that a sustained economic downturn could have "consequences."
"I wouldn't be surprised by project delays," he told Reuters. "This could result in some tonnage coming out of the yards without immediate employment."
"I think you can say we're still optimistic, but more cautiously optimistic than before," he added. Bergesen has three new LNG ships on order, two of which have already been contracted out to Belgian gas distributor Distrigas.
STOP AND THINK
The world's largest and only pure LNG shipping player, Golar LNG, historically bullish in its outlook, has also been forced to stop and consider the problem.
Golar has six ships locked into long-term contracts, but four more are under construction at South Korea's Daewoo and Hyundai yards and do not yet have firm future employment.
"There is a reasonable balance between the production coming onstream and the amount of ships ordered," Golar Executive VP Sveinung Stohle told Reuters, "The only risk is things might be delayed."
Stohle said that contracting out the new ships remained an option, but it was also developing an LNG trading arm, which might have a use for some of them.
Golar's closest competitor in terms of size, Exmar, is taking a more traditional approach. It has six ships on order and said it would leave as little as possible to chance.
"We've chartered out all of them except the Samsung ship, which is under offer for the (Qatari) RasGas tender," Managing Director Nicolas Saverys told Reuters. Four are booked out to El Paso and one to Enron.
He said that until all the upcoming projects had their Supply Production Agreements in place, it would be too risky for companies to place fresh ship orders.
"It's a good time to wait," said Saverys.

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

INDIA PRESS:British Gas Seeks ONGC Deal For Field Control

10/24/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- British Gas has offered India's Oil & Natural Gas Corp. (P.ONG) equity in its exploration acreage in Brazil and a cash settlement in lieu of operatorship of the Tapti Panna and Mukta oil fields, the Economic Times reported Wednesday.
ONGC and Reliance Industries Ltd. (P.REL) are claiming operatorship of the Tapti Panna and Mukta oil fields following Enron Oil & Gas India Ltd.'s 30% stake sale to BG, according to the report.
State-owned ONGC holds a 40% stake in the Panna-Mukta and Tapti fields and Reliance owns 30%.
The Enron Oil & Gas stake sale will fall through if BG isn't given the operatorship of the oil fields, Nigel Shaw, vice president of BG India said in the report.
Shaw said the equity partners are in discussions on the issue of operatorship, the report said.
British Gas is a unit of BG Group PLC (BRG). Enron Oil & Gas is a unit of Enron Corp. (ENE).

Newspaper Web site: http://www.economictimes.com

-By Dow Jones Newswires; 91-11-461-9426; ruchira.singh@dowjones.com

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

BG Offers ONGC Brazilian Assets to Get Managing Rights in India
2001-10-24 01:12 (New York)

     Mumbai, Oct. 24 (Bloomberg) -- BG Group Plc has offered Oil &
Natural Gas Corp. a stake in exploration projects in Brazil if
India's biggest oil producer allows BG to run the oil fields it
bought from Enron Corp. in India, the Economic Times reported,
without citing any officials.

     BG's purchase of Enron's 30 percent stake in the three oil
and gas areas in India is contingent on winning the right to
manage the developments. Reliance and ONGC, which together own 70
percent of the exploration venture, have both claimed rights to
run the oil and gas fields.

     BG has asked ONGC to waive its right to decide the operator
after Enron quits in return for a stake in its oil and gas sites
in Brazil, the paper said. It didn't give details on the Brazilian
interests BG may offer ONGC. BG has set Oct. 31 as a deadline to
resolve the ownership dispute, the paper said.

     The purchase from Enron would give BG a 30 percent stake in
the Tapti and Panna-Mukta oil and gas fields, as well as 63
percent of an untapped deposit on the west coast of India. The
assets hold more than 170 million barrels of oil and gas.

     Before agreeing with BG, Enron rejected bids from its Indian
partners, ONGC and Reliance, as well as from the nation's biggest
refiner, Indian Oil Corp.

House stimulus bill would give billions to huge companies; Senate Democrats present alternative
By CURT ANDERSON
AP Tax Writer

10/23/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - General Motors, IBM and Kmart are among corporations that would receive billions of dollars in tax refunds under a $100 billion House Republican economic stimulus package. Democrats say it is far too generous to companies and does too little for individuals.
Seven companies would get a total of $3.3 billion in refunds of alternative minimum taxes they paid as far back as 1986. The tax, which the House legislation also would repeal outright, is intended to ensure a basic minimum income tax is paid by companies and individuals that claim numerous deductions and credits.
IBM would get a $1.4 billion refund, according to the nonpartisan Congressional Research Service, while GM would get $832 million, Kmart $102 million and General Electric $671 million. Others specified for big refunds include energy giant Enron, at $254 million; U.S. Steel, $39 million; and grocery chain Kroger, $9 million.
In addition, the study found that Ford Motor Co. would get a refund that could total $2.3 billion, while Chevron's could reach $314 million.
Counting repeal of the tax, corporations would get more than $25 billion in tax relief from these minimum tax provisions in 2002 alone. In addition, the bill would make permanent a temporary tax break for financial services firms doing a lot of overseas business, providing them $21 billion in tax relief over 10 years.
The generous corporate tax breaks are among the most contentious items in the House GOP measure, scheduled for a floor vote Wednesday. Democrats say the measure is certain to change once it reaches the Senate; the Bush administration also has signaled that $100 billion is too costly.
"It's clear the House bill cannot pass the Senate as it is," said Sen. John Breaux, D-La.
For individuals, the House legislation includes a new round of tax rebate checks for workers who didn't get them this summer and a cut in the current 27 percent income tax rate to 25 percent in 2002, four years earlier than under the just-enacted tax cut. The measure also reduces capital gains rates from 20 percent to 18 percent for most taxpayers, enhances business equipment write-offs and allows companies to deduct current losses against taxes paid five years earlier.
The primary sponsor, Ways and Means Committee Chairman Bill Thomas, said in a newspaper opinion piece published Tuesday in USA Today that the legislation "is a shot of adrenaline" that will help restart the economy while not triggering inflation.
"Businesses generate jobs, and jobs are the core of a strong economy," wrote Thomas, R-Calif.
While bipartisan support backs some of the House items, Senate Democrats have been pushing for expanded unemployment benefits and help for workers who lose health insurance. Sen. Max Baucus, chairman of the Senate Finance Committee, presented a $70 billion proposal Tuesday that would extend unemployment benefits by 13 weeks, provide a 50 percent federal match for COBRA health insurance policies and allow more workers to qualify for Medicaid.
The legislation also includes rebate checks and some business items similar to the House bill but not the capital gains reduction or the alternative minimum tax relief. Tax cuts in the Baucus measure would total $35 billion in 2002, far below the House GOP level.
"This proposal appropriately responds to the sign of the times, helping this nation get back to work and recover quickly," said Baucus, D-Mont.
Other Democrats were working on spending programs. Senate Appropriations Committee Chairman Robert Byrd, D-W.Va., said he was putting together a $20 billion package that included hiring extra customs and border agents and food inspectors, augmented security at nuclear plants and purchase of more vaccines.
Sen. Charles Grassley, R-Iowa, said President Bush does not want the stimulus bill laden with additional spending.
"Everything in this package needs to be stimulative," Grassley said. "There needs to be more done on the investment side."
---
On the Net: House members: http://www.house.gov/house/MemberWWW.html

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

Wechsler Harwood Halebian & Feffer LLP Announces Class Periods

10/23/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

DQE, Inc. (DQE); Enron Corp. (ENE)
NEW YORK, Oct. 23 /PRNewswire/ -- Notice to persons who transacted in the following securities and respective class periods: CORPORATION CLASS PERIOD DUE DATE
DQE, Inc. 12/06/00-04/30/01 12/05/01
(NYSE: DQE)
Enron Corp. 01/18/00-10/17/01 12/21/01
(NYSE: ENE)
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") (http://www.whhf.com) has been retained to investigate claims or filed class action complaints involving the securities of the above companies on behalf of investors.
Wechsler Harwood has extensive experience representing shareholders in class actions and has served as lead counsel on behalf of shareholders in many such actions. The reputation and expertise of this firm in shareholder and other class actions has repeatedly been recognized by the courts.
If you wish to discuss these actions, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, by calling toll free 877-935-7400 or by contacting: Patricia Guiteau
Wechsler Harwood Shareholder Relations Department; DQE, Inc.:
pguiteau@whhf.com or whhfus@yahoo.com.
Ramon Pinon, IV
Wechsler Harwood Shareholder Relations Department; Enron Corp.:
rpinoniv@whhf.com or whhfus@yahoo.com.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X72542557

/CONTACT: For DQE - Patricia Guiteau, pguiteau@whhf.com, or For Enron - Ramon Pinon, IV, rpinoniv@whhf.com, both of Wechsler Harwood Shareholder Relations Department, whhfus@yahoo.com/ 18:37 EDT
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business
Stock Analysis/Call In
Bruce Francis, Kathleen Hays

10/23/2001
CNNfn: Markets Impact
(c) Copyright Federal Document Clearing House. All Rights Reserved.

KATHLEEN HAYS, CNNfn ANCHOR, MARKETS IMPACT: Both the Dow and the Nasdaq lost ground today after another big round of earnings news.
FRANCIS: Lets go to Keith in Alaska with a quick question for Don and Don let`s give us a zippy answer to.
LUSKIN: All right.
CALLER: Hey Don I like to know as far as Enron (URL: http://.www.enron.com/) is concerned, how representative of the energy sector is this because I`ve been watching as a small investor that`s kind of brand new, watching it just kind of plummet. So and I`m only investing a little bit every month in it but you think that`s pretty wise idea just kind of keep on doing small investments?
LUSKIN: Well as a general investing strategy yes but Enron is a special case where we have a company that`s in bad trouble. We had a CEO who basically left without explanation a couple of months ago, then yesterday the CFO has been accused of some pretty strange looking self dealing issues. We don`t know how that`s going to resolve but this is a company under a cloud so you might want to hold off on your buying program until that cloud lifts a little bit.
FRANCIS: All right Don, thank you very much; we appreciate it. Don Luskin.
LUSKIN: All right.

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


Attached is an e-mail that I sent to my management earlier this week.

A also have a couple of questions and observations.  First, do we have
anything in writing from PG&E when they refused to comply with our request to
revise their Roll-off Matrix?

Also, I spoke with Jeff who informed me of the various variables that the
market has to work with to negotiate with PG&E.  I agree with the following
variables:
extend the rate freeze beyond 2001, but no later than the end of 2004.
a $3.5 to $4.0 billion hydro valuation on January 1, 2002 to cover TRA and
TCBA undercollections at that point in time, with future payments based on a
revenue requirement calculation and a fixed rate of return.  These fixed
payments will be offset by the wholesale market revenues for the hydro
output.  Ratepayers will have to make up the difference in the future through
a balancing account and fixed surcharge or surcredit; in financial derivative
terms this is is the equivalent of a negative index (fixed revenue
requirement - market revenues presumed to be the PX).  This essentially NPVs
the cashflows to payoff shortfalls today at the risk of creating shortfalls
in the future to the extent that the value is too high.
increase the level of the frozen rate at some modest amount.  Keep in mind, a
$10 per mWh increase in PG&E's rates beginning January 1, 2001, translates to
a $155 million hit to the book for 2001 through 2010, so we would need an
offsetting benefit.  We could probably offset this hit if the rate freeze was
extended through March 31, 2002.
allow PG&E to hedge procurement costs for the extended frozen time period.
it is critical that the rate freeze does not end before July 1, 2001 for all
customers, including large and small and DA and SO.  Preferably the rate
freeze would end no earlier than December 31, 2001 or 2002.  They can also
extend the rate freeze for a longer period of time for small customers or
change the freeze to an SDG&E type of mechanism beyond December 31, 2001.
The following is PG&E's situtation.

As you can see that they will be trying to cut their losses, even though they
have still not fully collected all outstanding undercollections.
Undercollections are projected to grow through next year.  What PG&E will be
looking for is a way out or a swaption to switch customers from the fixed to
index asap.  I don't think they will be so quick to do give up $500 million
at this point and will be interested in some type of settlement that would
protect this amount.  There is still the political hot potato about rolling
off early and selling out customers and the only way they could do this is
with a quick valuation of hydro.  Maybe they would be willing to take some
loss even in a settlement to avoid upsetting politicians and customers.  If
the process is delayed, PG&E's exposure will probably be over $1 billion by
the end of the year and possible $2 billion by the end of 2001.  So you see,
there would be a need for some combination of a slight increase in rates,
extension of the freeze to capture the backwardation in commodity price, and
a higher hydro valuation with ratepayers incurring the risk for the higher
valuation in the future, in exchange for a deal that insulates ratepayers
from volatility and rate shock today.
It is key that the extended Rate Freeze equitably treats DA customers in the
form of today's rate freeze with a PX credit that is not capped.

Roger
---------------------- Forwarded by Roger Yang/SFO/EES on 09/21/2000 01:52 PM
---------------------------

Roger Yang
09/19/2000 10:28 PM
To: Dennis Benevides/HOU/EES@EES, Scott Stoness/HOU/EES@EES
cc: Marty Sunde/HOU/EES@EES
Subject: PG&E Strategy to End the Rate Freeze Early and Potential Book Impact

PG&E filed Advice Letter 2010-E-A on September 15 requesting to revise its
hydro value estimate of a $1.0 billion previously filed in June to $2.8
billion, retroactively effective on June 23, 2000.  Although PG&E does not
state the intent to end the rate freeze, effective July 1, 2000, it is clear
that PG&E will claim that the $2.8 billion interim valuation will render the
rate freeze as having ended retroactively on July 1, 2000 if the CPUC
approves this advice letter.  Our estimates show that this is viable;
however, PG&E will be undercollected by $682 million in its Transition
Revenue Account.  It is unclear whether PG&E is willing to forego this
undercollection in order to avoid incurring higher undercollections from the
run-up in electric commodity prices under a rate freeze, or if PG&E has some
other plan to recover this undercollection as a post-freeze rate adder.  Even
though Decision Nos. 00-02-048 and 00-06-004 adopt ratemaking methodologies
to establish an interim valuation that triggered PG&E's Advice Letter
filings, this decision states that "[the CPUC] will address the impact of
this accounting on the end of the rate freeze at the appropriate time and in
the appropriate proceeding." (p. 10)  Hence, there is no conclusive decision
that states that this interim valuation should be used to end the rate
freeze.  In fact, the utilities had argued the contrary, it could not be used
in this manner.

Since PG&E has already sent out bills for August and should alreay wdy have
sent out bills for September by the final resolution of this Advice Letter, I
believe the earliest implementation date for ending the rate freeze would be
October 1, 2000.  In addition, I would have to believe that allowing PG&E to
implement an end to the rate freeze effective July 1 would violate codes on
retroactive ratemaking since it would result in an immediate increase to
PG&E's customers.  The book impact to EESI for a termination date of October
1 would be a $127 million loss.  A delay to an October 1 end date would
result in an undercollection for PG&E greater than $1.2 billion.  PG&E will
try to recover this undercollection in future rates if the end date is
October 1.  To the extent that such recover is delayed and recovered over an
extended period of time, the impact on the book could be minor due to the
expiration of many of our contracts in 2002.

AB1890 Section 368.a states, "These [frozen] rate levels for each customer
class, rate schedule, contract, or tariff option shall remain in effect until
the earlier of March 31, 2002, or the date on which the commission-authorized
costs for utility generation-related assets and obligations have been fully
recovered.  The electrical corporation shall be at risk for those costs not
recovered during that time period."  I interpret this to mean that the
utility does not have the option to artificially end the rate freeze
earlier.  However, PG&E may be trying to end the rate freeze early through an
interim valuation of hydro assets.  AB1890 Section 367.a.5 states, "For those
assets subject to valuation, the valuations used for the calculation of the
uneconomic portion of the net book value shall be determined not later than
December 31, 2001, and shall be based on appraisal, sale, or other
divestiture.  The commision's determination of the costs eligible for
recovery and of the valuation of those assets at the time the assets are
exposed to market risk or retired, in a proceeding under Section 455.5, 851,
or otherwise, shall be final, and notwithstanding Section 1708 or any other
provision of law, may not be rescindeded, altered or amended.  PG&E's
original position was an interim valuation could not end the rate freeze when
PG&E had thought it could overcollect CTCs before the run-up in market
prices.  Now PG&E is trying to rewrite history after the fact by using an
interim valuation that is higher than their original estimate.

Per Decision No. 99-10-057, PG&E and SCE were ordered to "file an advice
letter three months prior to the earliest forecasted date that the rate feeze
will end or Sepetmeber 2001 if the rate freeze does not end early....The
Advice Letter implementing rate changes shall become effective within 30 days
of the end of the rate freeze subject to Energy Division determining the
Advice Letter is in compliance." (Ordering Paragraph 1)  To the best of my
knowledge, PG&E has yet to file an advice letter providing 3 months notice of
an end to the rate freeze.  This demonstrates that PG&E is taking desperate
actions.  In that same decision, the CPUC ordered that "PG&E and SCE shall
provide to interested parties estimates of the date the rate freeze will end
and file advice letters to effectuate the end of the rate freeze as set forth
herein." (Ordering Paragraph 2)  To date, every estimate filed with the CPUC
showed that the rate freeze would end no earlier than January 1, 2001.  In
fact, Enron has notified PG&E on prior occasions of the possibility of a
potential earlier end date and PG&E dismissed our concerns about the
misinformation perpetrated by PG&E's filings.  This demonstrates a willful
act on PG&E's part to commit fraud if they were to end the rate freeze before
2001.  This would not be the first time that PG&E has manipulated the
regulatory process.  In its General Rate Case, PG&E was communicating an
expectation of 35 to 40% rate drops at the end of the freeze, which were
later revised to 20% drops.  The effect was to paralyze customers from
choosing an alternate supplier, which turns out was not in the customers best
interest.  Finally, the decision states, "the end of the rate freeze shall
not occur before the generation assets of each utility have been
market-valued except as the law or the Commission determine otherwise."
(Ordering Paragraph 2)  This provision clearly demonstrates that despite all
of PG&E's acts, it will be the final decision of either the Legislature or
Commission as to whether they will allow PG&E to end the rate freeze
retroactively without any advance notice and causing an immediate increase in
utility bills to half of the customers of investor-owned utilities in
California.  If the Legislature or Commission is willing to commit this type
of political suicide, then PG&E's grip on these bodies is tighter than we
could ever imagine.

As opposed to PG&E's desperate plans that would negatively impact California
customers, we willl pursue a win-win strategy.  Amongst various strategies
would be to extend the rate freeze up to December 31, 2004.  A freeze ending
any period between July 1, 2001 and December 31, 2004, will have a positive
impact on our book.  Estimates from a month ago showed a positive impact in
the ballpark of $156 million if the rate freeze were to end on December 31,
2004.  Of course our preference would be to end earlier than 2004 so as to
avoid a potential negative impact on future sales; however, we believe this
PG&E would require at least this time frame in order to mitigate its
undercollections that it would incur for the next few years.  PG&E will
benefit by the opportunity to maximize recovery, especially given an
opportunity to now hedge this risk and with the hedge funded by ratepayers.
ENA will have the opportunity to sell to PG&E.  Customers get a reprieve and
will have an additional four years to prepare for the new market structure,
knowing what they may expect from the scare from this summers.  With a better
informed customer, we may even be able to still sell in California.  The
Governor, Legislature, and Regulators, can defer the concerns to someone
else's term in office.  At a minimum, we should try to negotiate some joint
proposal with PG&E that would extend the rate freeze to December 31, 2001 or
March 31, 2002, with guaranteed recovery of undercollections for PG&E for
some time period beyond those dates.  If adopted by CPUC, PG&E would get the
P&L protection they need and customers can benefit from the reprieve from
higher rates.  I think the key is to preserve the current AB1890 rate freeze
mechanism versus a mechanism similar to that enacted by the Legislature for
SDG&E, because that legislation does not adequately protect all customers and
competitors equally.  The only solution will be a win-win solution.  The Wall
Stree Journal speculates that PG&E will be reluctant to be too aggressive in
selling out customers and may be positioning itself to negotiate a win-win
solution.  We need to make sure we are part of that winning solution, if not
influence that solution.  Moody's Investor Services Inc. issued a negative
outlook on PG&E and PG&E's stock price has dropped $4 from $30 to $26 in the
last week.  Government Affairs is on top of this issue.

Roger


Dear Steve:  Yes, I'm going by the documentation sent to us by the Railroad
Commission.  I'll keep you advised re final disposition of the P-5 filing.

Best wishes,
Mary

	Steve HPL Schneider
	05/07/2001 06:27 AM

		 To: Mary Ogden/HOU/ECT@ECT
		 cc:
		 Subject: Re: Status of HPL wells at Bammel

On the Ehrhardt, did you mean to reflect 12 wells?

Mary Ogden
04/26/2001 10:52 AM
To: David Kantenberger/HPL/Enron@ENRON
cc: Gerald Nemec/HOU/ECT@ECT, Cheryl Dudley/HOU/ECT@ECT, Steve HPL
Schneider/HOU/ECT@ECT
Subject: Status of HPL wells at Bammel

Dear David:  I'm assisting Gerald Nemec in HPL's Tx Railroad Commission
(TxRRC) P-5 filing.  The TxRRC's files indicate that we have 2 inactive wells
at Bammel, Field No. 05388270.  The two wells are:

Pyles, Anna Unit, Lease/ID 04631 (1 well)
Ehrhardt, John, Lease/ID 162241 (12 wells)

If these wells are inactive but not plugged, we will need to obtain bonds for
these wells.  Also, new TxRRC rules state that we must perform an "H-15 test"
on these wells now.

Please tell me the status of these wells.  If they are plugged and abandoned,
our compliance requirements may change.  If not, can you help us make sure
that an "H-15 test" is performed and send me such proof so that I can satisfy
the TxRRC requirements?

Thanks in advance for your help, and please call me with questions or
comments.

Best wishes,
Mary

Mary C. Ogden
Legal Specialist
Enron Wholesale Services/Enron Americas/Legal
1400 Smith Street, EB 3876d
Houston, TX  77002-7361
Phone:  713-853-7796
Fax:  713-646-3490
Mary.Ogden@enron.com


Ladies and Gentlemen:

We have enclosed initial drafts of the closing memorandum and of a letter
from ENA confirming that it has no objection to and will not act in
furtherance of frustrating execution of the financing documents between
Salmon and PPL.  Please review and advise of any comments.

We await receipt of comments to the escrow disbursement instruction letter.
Thank you.

Carolyn M. Campbell
King?& Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

Enclosures: 140424v1
  140366v4

                    Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.

 - ENA Ltr to Delta Lender re Form of Agmt.DOC
 - SalmonClosingMemorandum.DOC


Everything is good here. Gary has been with Enron for quite a while.  Most
recently, he managed interest rate and foreign exchange/currency risk.  You
should give him a call or email.

Besitos a las chicas de Filo.

Suerte,

Scott

Pablo Acevedo @ ENRON   08/01/2000 12:37 PM

To: Scott Neal/HOU/ECT@ECT
cc:
Subject: Question

Hey Scott,
How is the East Desk doing?I can imagine that things are rolling over there.
Do you know this new guy assigned to trading Ag. commodities Gary Hickerson?
I would really like to get in touch with him. What do you think.

Trying to make things roll down here.

Saludos,

Pablo
(Ta fresco pa chomba)

PS: Hey the chicks from Filo are still asking about you.


i don't trade any energy or pulp/paper commodities, but i do trade forex,
interest rate, s&p and nasdaq indices, and agricultural futures.
hope that helps

From: Tana Jones@ECT on 06/26/2000 08:00 AM
To: Alhamd Alkhayat/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Re: Enron North America Corp. NYMEX Hedge Exemption Applications

The Enron trading policy prohibits employees from trading any products the
company trades.  Please let me know if you are trading any commodities that
Enron trades, otherwise you should be OK.

	Alhamd Alkhayat@ENRON_DEVELOPMENT
	06/25/2000 04:15 PM

		 To: Tana Jones@ECT
		 cc:
		 Subject: Enron North America Corp. NYMEX Hedge Exemption Applications

Dear Tana
I do have trading authorization-limited and full power of attornies-over
several futures accounts including my own.  They are all family and friends
accounts, held with  Bear Stearns & Co.  Contact person is Alan Pailet 1 617
654 2345.
If you have any questions you can reach me at 67695.
Cheers
Hamd

---------------------- Forwarded by Alhamd Alkhayat/ENRON_DEVELOPMENT on
06/25/2000 04:14 PM ---------------------------
Sent by: Enron Announcements@ENRON
To: All Enron Houston, Everyone_in_ECT_Calgary, Everyone_in_ECT_London,
Everyone_in_ECT_Portland, Everyone_in_ECT_New York, Everyone_in_ECT_Denver,
Everyone_in_ECT_Oslo, Everyone_in_ECT_Singapore, EI-Australia, Buenos Aires
Argentina - Office Staff, Buenos Aires Argentina - TGS Office Staff, Enron
Everyone_EOG_Denver, Enron Everyone_EOG_Calgary
cc:

Subject: Enron North America Corp. NYMEX Hedge Exemption Applications

We are in the process of preparing applications for position limit exemptions
for ENA,s NYMEX energy commodities futures trading.  These applications
require that ENA represent whether its officers, employees, owners, or agents
have a power of attorney, control or have a financial interest in any other
related commodity future(s) account either individually or acting with
another person pursuant to express or implied agreement.

Please direct any responses to my paralegal, Tana Jones, via intercompany
email or call her at (713) 853-3399 by the end of business Friday, June 30,
2000 if you have any power of attorney, control or have a financial interest
in any commodity futures account (other than an ENA or other trading
affiliate account).

IF YOU DO NOT HAVE A COMMODITY FUTURES ACCOUNT, YOU DO NOT NEED TO RESPOND TO
THIS REQUEST.


Mary Kay:

Please coordinate activities in this area with the Omaha Planning team through Bryan Reinecke - Planning Coordinator.  Ken Anderson will be the primary person on the team picking up the work Eric did for us.

Happy Holidays!

P.S. (your original e-mail had "Paul" Lowry listed.  I assume you meant "Phil" so I changed it.)

John R. Keller
Vice President, Planning & Power Services
Enron Transportation Services
713-646-7624
john.r.keller@enron.com

-----Original Message-----
From: Miller, Mary Kay
Sent: Thursday, December 20, 2001 6:15 PM
To: Miller, Mary Kay; Pribble, Dan; Lowry, Paul; Neubauer, Dave; Porter, J. Gregory; Dornan, Dari; Kirk, Steve; Rice, Randy; January, Steve; Blair, Lynn; Darveaux, Mary; Fossum, Drew; Keller, John R.; Gottsponer, Morgan
Cc: McCarty, Danny; Corman, Shelley
Subject: RE: Producer meeting

Phil/John/ Morgan,  since Eric has left, can you let us know who to work with on the allocations alternatives??

-----Original Message-----
From: Miller, Mary Kay
Sent: Wednesday, December 19, 2001 8:46 AM
To: Pribble, Dan; Lowry, Paul; Neubauer, Dave; Porter, J. Gregory; Dornan, Dari; Kirk, Steve; Winckowski, Michele; Loeffler, Michael; Rice, Randy; January, Steve; Blair, Lynn; Darveaux, Mary; Fossum, Drew
Cc: Horton, Stanley; McCarty, Danny; Corman, Shelley
Subject: Producer meeting

The meeting yesterday with about 7 small producers in Okla went fairly well.  It is obvious that they now realize that the cost of processing, if necessary is there obligation, not Northerns.
We heard the same rhetoric about the history, for the past 30 years it is has been a "wet" system and they entered into contracts without any processing obligations.  Northern' can't change due to this and historical operation and "unwaive" the high c6+ based on the highest receipt levels.  They (Dan?? ) was very insistent that if a problem occurred, all shippers should be pro rated and NNG's tariff should be enforced at the tailgate of the Bushton plant, not the point of receipt as the tariff currently states.  They asked us to file to change, potentially incorporate a default processing agreement that had to be used in the event of high concentrations of C6+--  I think you get the drift of the discussions--  don't just cut my gas, cut everyone

To Do's
We agreed to look at data from last year (assuming we have it available) to determine what the allocations would have been under the following scenarios:
        a)  Allocation as proposed-  highest levels
        b)  Allocation based on prorata at Bushton outlet
        c)  Allocation based on prorata at Demarc

Greg is to get in contact with Mitch Hertz (their attorney) to discuss feasibility of requiring gas quality waiver at the tailgate of Bushton:
          what FERC would do--
          what about other shippers--
          what is Bushton isn't running
          what about a default processing agreement being required
          Hypothetical allocations above, can FERC require

Dari,  can you find the status and outcome of a Southern docket filed last year?

Mary D.  validate that we can't require the plant to run--

Mike Loeffler-  check Oklahoma state proceeding to find any filing by Energex and Transok relating to gas being "dry"  may not yet be filed---   need to watch for it

Timing---  we said we would attempt to get back to them mid January--

If you have any questions, please feel free to call myself or Dave N.


Sherry,

This stuff looks perfect. I think I like the 385-B the best. I don't think I want the hutch though. So I guess I need 3 pieces (385-512,519,533). Can please order the pieces you don't have in stock. Also, this Thursday is just fine to deliver that stuff. Can you please remind the guys in the warehouse to pick up that loveseat at Carleton House. Be sure to let me know what it cost to fix that so I can bill the moving company.

Thanx for all the help!

Chris

 -----Original Message-----
From: 	"Sherry Sinclair" <ssinclair@simsfurniture.com>@ENRON
Sent:	Thursday, October 18, 2001 6:18 PM
To:	Dorland, Chris
Subject:	home office

Hi Chris,
     Following is information  re:  the home office we spoke of earlier.  We have stock of the  385/522 double hutch, the 385/512 single pedestal desk, 385/513 double pedestal  desk, 385/514 computer desk, 385/530 cabinet, 385/551 30" bookcase, 385/552 48"  bookcase, and finally the 385/553 76" bookcase.  If we special order  any pieces they will take about 6 weeks to arrive.  Further to this, we  will deliver the La-z-boy suite, occassional tables, carpet, bed, etc. on  Thursday Oct 25. We are still waiting for your dining room suite to  arrive.  With any luck it will be here and we will deliver it as well. Any  concerns or questions regarding the above, please call.  Hoping  this info helps!!!!!
    Talk to you soon.
     Sher.
 - sherry5.jpg << File: sherry5.jpg >>
 - sherry2.jpg << File: sherry2.jpg >>
 - sherry3.jpg << File: sherry3.jpg >>
 - sherry4.jpg << File: sherry4.jpg >>
 - sherry1.jpg << File: sherry1.jpg >>


---------------------- Forwarded by Rob G Gay/NA/Enron on 12/11/2000 09:59 AM
---------------------------

"Jones, Matthew" <MNJ@dentonwildesapte.com> on 11/30/2000 01:25:58 PM
To: "'Rankin, Cliff (V&E)'" <crankin@velaw.com>, "'Barquin, John'"
<jbarquin@velaw.com>
cc: "'Dutton, Chris'" <Chris.M.J.Dutton@SI.shell.com>, "'Gay, Rob (Enron)'"
<rob.g.gay@enron.com>, "'Tarry, Steve (V&E)'" <starry@velaw.com>, "''Novak,
John (Enron)'" <john.novak@enron.com>, "Pirrie, Andrew"
<AYP@dentonwildesapte.com>

Subject: ECA

I attach DWS/Shell comments on the latest version of the ECA.  The comments
appear in the text in bold caps, underlined.

The following also need to be included in the draft:

1.  provisions for sponsor guarantee buyout, once agreed; and

2.  a provision along the lines of Section 7.06 of the TBS Security
Agreement (relating to step-in to the TBS agreements) so as to give
SOTL/Enron Corp privity in relation to these rights.  (This point was agreed
with Mary some time ago in one of the New York meetings.)

Consideration also needs to be given as to whether there should be express
recognition of the rights of STDC and Enron Netherlands to subscribe subdebt
under the ECA.

Regards

_____________________________________

Matthew Jones
Denton Wilde Sapte
One Fleet Place  London  EC4M 7WS  UK
Tel: +44 (0)20 7246 7500
Fax: +44 (0)20 7246 7777
E-mail: mnj@dentonwildesapte.com
_____________________________________

 <<DWSShell comments on ECA.DOC>>

******************************************************************************
**
This e-mail is from Denton Wilde Sapte.  Our web site is at
http://www.dentonwildesapte.com A list of our partners may be inspected at
our principal place of business, which is at Five Chancery Lane, Clifford's
Inn, London, EC4A 1BU, UK.  Our central telephone number is (0)20 7242 1212.

This e-mail (including any attachments) is intended only for the recipient(s)
named above.  It may contain confidential or privileged information and
should not be read, copied or otherwise used by any other person.  If you are
not a named recipient, please contact the sender and delete the e-mail from
your system.

******************************************************************************
**
 - DWSShell comments on ECA.DOC


Today's technical conference (RP00-336) was not the snazzy show we perhaps expected.  With El Paso having done 5 studies on different allocation scenarios, shippers requested four more, showing seasonalization impacts and the difference between CD and Full Requirements shipper Coincidental and Non Coincidental Peaks.

Though there were some FR vs. CD shippers discussions, they did not reflect the battle we see going on in the two complaints filed this summer by
the TX, NM and AZ FR shippers and Aera Energy (CD shippers).  There was also no mention of converting FR shippers to CD service.

The primary issue here ended up being procedural, with the decision still up in the air if this should be set for hearing or a merits decision from the Commission (or settlement, though that seems very likely -- merits decision is the most likely case).

Also never mentioned were the CD and FR complainants proposals that El Paso dedicate currently proposed expansions to existing shippers or requiring mainline system expansion for existing service (RP01-484 and 486).

The procedural schedule has been set:
	El paso further studies and answers to questions posed at conference or in writing:   Sept. 24
	Initial comments (on all capacity allocation issues and procedural recommendations): Oct. 15
	Reply comments:  Oct. 26

I'll send a more detailed report, but wanted to get the quick info. out to those most interested.


the closest airport to long beach is long beach.  you can get a direct
flight i'm sure.  let me know, i still need to buy you dinner and let you
spill all your knowledge of the gas market......

-----Original Message-----
From: Kim.Ward@enron.com [mailto:Kim.Ward@enron.com]
Sent: Tuesday, April 10, 2001 6:54 AM
To: estrickland@mieco.com
Subject:

Hey, where is the closest airport to Long Beach?  May be in town on april
26th.  Trying to get from San Jose to Long Beach.


---------------------- Forwarded by Elsa Villarreal/HOU/ECT on 09/15/2000
03:46 PM ---------------------------

Andy Zipper@ENRON
09/07/2000 07:05 PM
To: EOL Non North America Traders, EOL North America Traders
cc: Product Control - Houston, Product Control - London, Louise
Kitchen/HOU/ECT@ECT, Greg Whalley/HOU/ECT@ECT
Subject: The EnronOnline Games

Highlights:
Launch of The EnronOnline Games on Friday - Sept. 8, 2000.
EnronOnline customers encouraged to participate for a chance to win grand
prizes (details below).
Internal (Enron) employees using EnronOnline are welcome to participate for a
chance to win a different set of prizes (details below).

Please participate in the game and encourage all your counterparties to do
the same, and help build greater community around EnronOnline.

******************************************************************************
******************************************
Details:
We are excited to announce the launch of The EnronOnline Games on Friday -
September 8, 2000 (tomorrow).  All EnronOnline customers with an Execute
access to EnronOnline, and all the internal users of EnronOnline (Enron
employees) will be able to participate in this competition.  The objective of
these games is to build greater community around EnronOnline and to provide
our users with additional services and some fun competition for cool prizes.

The Game:
The Game will be structured around the Olympics games being held in Sydney
between Sept 15-October 1, 2000 (please note that we are advised against
using the word Olympics when talking to our customers re. the game and as
such, would rather use "The EnronOnline Games").  Participants can select any
or all of the five countries allocated from a random draw as their pick.  Any
country that was not selected by the participant in the first draw, will be
replaced by another randomly allocated county in a second and final pick,
ensuring that the participant has their full portfolio of five.  These
selections have to be made by 6:00 PM Eastern Standard Time (midnight,
Greenwich Meridian Time).  That is, the morning BEFORE the games are played
each day.  Points will be accumulated for each gold, silver, or bronze medal
won by the selected country.

Prizes:
Enron Employees:  Winning participants from within Enron will be awarded
prizes as well.  These winners will not be competing for the customer prize
pool, but will be eligible for a separate set of prizes, as detailed below.

First Prize:  $1,000 to $2,000 range (portable DVD player, digital camcorder,
etc.).

Second Prize: $1,000 to $2,000 range (portable DVD player, digital camcorder,
etc.).

3-10 Prizes: An assortment of smaller prizes.

EnronOnline Customers:  There are substantial prizes for winning participants
from the customer pool and are as follows:

First Prize (awarded as a package):
Sony 618 XBR Projection Television
Matching 8 Shelf XBR Cabinet
200 Disc DVD/CD Player
A/V Receiver w/110 w/Channel
Home Theatre Six Speaker System
Network Recorder
Digital 8mm Camcorder w/Built-in Printer

Second Prize:
Sony 368 Flat Screen TV

Third Prize:
Sony Portable DVD Player w/LCD Screen

You are all encouraged to participate in the games and are urged to encourage
your customers to do the same.

Pls. note that there are some jurisdictional restrictions on participation,
and the restricted customers aren't eligible to play or receive prizes.  For
further questions, please refer to the following FAQ attachment or call the
EnronOnline help desk.

Regards,
Andy


Harry/Jim:

Given that we are not currently processing incremental deals, I have asked the following Risk Group members to become experts and create an unabridged version of "Everything You Need to Know About ISO Collateral Issues".  I know you are doing the same but I want my group to understand the issues so that we, as a company, can better anticipate the upcoming issues and work to resolve most efficiently.  Please let us know if we can coordinate these efforts:

Jeff Merola:		NEPOOL
Sanjay Hemani:		ERCOT
Michelle Raque:		PJM
Juan Padron:		NYISO


---------------------- Forwarded by Kevin G Moore/HOU/ECT on 11/20/2000 09:47
AM ---------------------------

"Sanfilippo, Gerard A [FI]" <gerard.a.sanfilippo@ssmb.com> on 11/20/2000
08:11:39 AM
To: undisclosed-recipients:;
cc:
Subject: FW: ENERGY WEATHER UPDATE

> ----------
> From:  Davis, Jon B [FI]
> Sent:  Monday, November 20, 2000 9:00 AM
> Subject:  ENERGY WEATHER UPDATE
>
>  <<ENERGY1120.pdf>>
>

 - ENERGY1120.pdf


Further to our conversation of the other day, we have compiled some information on political contributions by other corporations.

Please see attached spreadsheet.  As you will note, energy companies are already heavily slanted to the Republican party (as are Pharmaceuticals for the most part).  The interesting one is the financial sector, where contributions are more evenly split with one (Bank of America) heavily slanted to the Democrats.  Have a look and let's talk.

 -----Original Message-----
From: 	O'connell, Earlene
Sent:	Monday, July 23, 2001 5:13 PM
To:	Linnell, Elizabeth
Cc:	Kean, Steven J.
Subject:	RE: Research
Importance:	High

Good afternoon-

I have pulled the information that you requested and the attached document outlines the findings.  Per your request, the data compiled is a sampling of soft money donations for the 1998-2002 cycle for the Energy, Financial, and Pharmaceutical industries.  This was ready for you last night, but I decided to dig a little deeper and have provided additional data that you may find useful.

I looked at the specific industry for the companies that you requested and then I backed up to the "Overview" for the industry.

In "The Center for Responsive Politics" website, the "Top Recipients" are based on contributions from PACs, soft money donors, and individuals giving $200 or more. Due to the voluminous nature of the Top Recipients listed, I printed them out and they are available for your perusal.  On the spreadsheet, I continued the analysis on the Top Recipients and what was donated, in the election cycles 1998 - 2000, across the 3 industries.   Because you asked for a combination of Oil & Gas Companies and Electric Utilities, I showed Electric Utilities and Oil & Gas data, separately and then combined.

Numbers that are listed in "bold" indicate the group who had the largest donations within each research area.  The split on the "Top Presidential Democrat and Republican Candidates" are calculated from the "Overview of Sectors '98 - '00".

If you have any questions please feel free to contact me.

Thanks!

______________________________
Earlene O'Connell
Enron Corp.
Public Affairs
earlene.o'connell@enron.com
713-853-7870

 -----Original Message-----
From: 	Linnell, Elizabeth
Sent:	Friday, July 20, 2001 10:05 AM
To:	O'connell, Earlene
Subject:	Research

Please pull information on the soft money federal contributions by the following organizations:

Duke
Dynegy
Mirant
Southern
Williams

Various financial institutions

Eli Lilly and other pharmaceuticals

We're interested in their overall spend, their party split, and the individual candidates they're contributing to.

Thanks.


Vince,

Please find attached the interim report on agricultural commodity trading for
Gary Hickerson. Your comments are welcome as we would like to send this to
Gary as soon as possible.

Regards,
Kate
ext 3-9401


Don,
Please advise of your interest in the following Candidate.

Courtnie Parker
Enron North America
(713) 853-5315
courtnie.parker@enron.com


Just to give a head's up,

In case I'm not here and you have to get something signed for EnronOnline,
Louise Kitchen absolutely does not want any other officer signing documents
for her group.  The only two signatories for EnronOnline are Louise and Andy
Zipper, Vice President.  FYI, we do have a resolution in place that allows
certain individuals to sign password applications (only!) on behalf of
EnronOnline.


Ms. Sissy Crawford,

Thanks for the update on UT games.  Love those Aggies.  I heard Enron is
going to sponsor a badminton player at the Olympics and of course you came to
mind.  I need a review of the Bond film -- you seemed to be paying very close
attention to it while I was a tad distracted, hopefully you can tell me about
it.  I hope you are having a good day and I'll talk to you later.

Bo


-----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Friday, September 28, 2001 2:32 PM
To:	Jack Dolan (E-mail); Steve Lins (E-mail); 'lsilva@ci.glendale.ca.us'
Cc:	Tycholiz, Barry
Subject:

Hello again,

Now that air travel is somewhat back to normal, Barry and I are rescheduling our trip to Southern California.  It is my understanding that the ISDA itself has been executed and required attachments are in the process of being gathered.  Therefore, you will soon have the option of transacting with Enron financially.   We are available to meet with you at any time on October 11th.  Please let me know if and when you guys are available and I will set that time aside for you.

Again, we look forward to meeting with you and exploring new opportunities.  Please feel free to call me if you have any questions.

Thanks,

Kim Ward
Manager, West Gas Origination
713-853-0685


Jumps in Value-at-risk calc
EFF_DTPORTFOLIO_IDDOWN95DOWN99
01-May-01WEST-DPR-VAR    (26,683,222)     (38,279,807)
01-May-01EAST-DPR-VAR    (34,670,131)     (53,329,980)
01-May-01CAND-DPR-VAR    (12,252,860)     (17,699,660)
01-May-01AGG-PWR-II    (50,494,023)     (72,905,916)

No jumps in Value-at-risk calc
EFF_DTPORTFOLIO_IDDOWN95DOWN99
01-May-01WEST-DPR-VAR    (25,713,174)     (37,131,448)
01-May-01EAST-DPR-VAR    (33,426,547)     (49,507,233)
01-May-01CAND-DPR-VAR    (12,345,632)     (18,726,559)
01-May-01AGG-PWR-II    (48,061,924)     (66,560,550)

Diff in Value-at-risk calc between jumps and no jumps
EFF_DTPORTFOLIO_IDDOWN95DOWN99
01-May-01WEST-DPR-VAR          970,048         1,148,359
01-May-01EAST-DPR-VAR       1,243,584         3,822,748
01-May-01CAND-DPR-VAR           (92,771)       (1,026,900)
01-May-01AGG-PWR-II       2,432,099         6,345,366


This looks good to me.

Jeff

 -----Original Message-----
From: 	Deming, Richard
Sent:	Monday, November 05, 2001 12:30 PM
To:	Hodge, Jeffrey T.; Mims, Patrice L.
Subject:	CSN

Jeff / Patrice

As per our conversations, here is the new confirm.  Please reply back to let me know it is ok to go out.

 << File: Export.doc >>

Thanks
Richard
x54886


I meant 2001.

Scott Neal
10/24/2000 10:25 AM
To: Jared Kaiser/HOU/ECT@ECT, Tammi DePaolis/Corp/Enron@ENRON, Robin
Barbe/HOU/ECT@ECT, John Craig Taylor/HOU/ECT@ECT, Dick Jenkins/HOU/ECT@ECT
cc:
Subject: 2000 top target customers

I would like each of you to list your top 5-10 target customers for 2000 by
12pm tomorrow.  Please let me know if you have any questions.


Please call if you have any questions.

Mark Confer 5-7179


Steve Kirshch
CEO
Propel
1010 Rincon Circle
San Jose CA 95131

ph.  408.571.6317
fax: 408.577.1070
e-mail:  stk@propel.com

Vivek Ranadive
CEO
Tibco
ph. 650.846.5001
e-mail: ranadive@tibco.com

Kenneth Oshman
President & CEO
Echelon
415 Oakmead Parkway
Sunnyvale CA 94085
ph. 408.938.5244
fax 408.328.3805
e-mail: keno@echelon.com

John Doerr
ph. 650.233.3353
e-mail: jdoerr@kpcb.com

---------------------- Forwarded by Joseph Alamo/NA/Enron on 05/22/2001 11:37
AM ---------------------------
From: Jeff Dasovich on 05/22/2001 10:53 AM CDT
Sent by: Jeff Dasovich
To: Karen Denne/Corp/Enron@ENRON
cc: Joseph Alamo/NA/Enron@Enron

Subject: HELP -- CEO email

I'll have Joseph clean up the letter and send you the email/fax #'s etc. for
the list, for the cards that I gathered.

Best,
Jeff

----- Forwarded by Jeff Dasovich/NA/Enron on 05/22/2001 10:51 AM -----

	Karen Denne
	05/22/2001 12:45 AM

		 To: Jeff Dasovich/NA/Enron@ENRON
		 cc:
		 Subject: HELP -- CEO email

Jeff -- Thanks for your phone message.  I'm stuck and need your help.  My
Microsoft Word isn't working, and I want to send something out to the ceos
asap tuesday.  Can you clean up the letter?  I'm fine w/ your edits (for the
signature line, add "name, title")  Pls send me the final letter so I can
detach.  i've left a message for steve and will wait to send until i hear
from him.

I'm didn't collect biz cards from everyone at the CEO meetings, and I need
email and/or fax numbers for:

Tony Ridder
Steve Kirsch
Ken Oshman
Fred Anderson
Dan Scheinman
Vivek Ranadive
John Doerr
Ray Irani

Can you send me the info from their cards?  Call me if you have any
questions.  THANK YOU!!!

kd


The new deal should have the same price as the deal that you copied.

D

Michael Olsen@ENRON
02/26/2001 02:54 PM
To: Daren J Farmer/HOU/ECT@ECT
cc:
Subject: deal 637225

This is the deal we made for El Paso last Friday to replace deal 235670,
which had Teco.  Julie Meyers needs a price to be added to the deal.  Which
price should I add?


Very good.  I'll wait to hear.

>Tom, the memo is fine, but before sending it we need to get confirmation
>from John Beckworth or Mike Perrin that Senator Bentsen will be able to
>attend the dinner at which the award will be given.  I left messages for
>John and Mike last Friday.  Jim
>
>
>
>
>Tom Henninger <thenninger@mail.law.utexas.edu> on 12/04/2000 10:32:31 AM
>
>To:   James.Derrick@enron.com
>cc:   nbrazzil@mrzip.cc.utexas.edu
>
>Subject:  Lifetime Achievement Award memo attached
>
>
>Hello, Mr. Derrick--Nancy asked that I send you this draft memo for your
>review/approval.  Please let me know if you have difficulty opening it
>and/or what changes need to be made to it.  Thanks.
>
>Best regards,
>
>Tom
>
>(See attached file: Lifetime Achievement memo.doc)
>
>
>
>Attachment converted: Macintosh HD:Lifetime Achievement memo.d (W8BN/MSWD)
>(00005850)


Beth:

Attached is a redline with a few brief changes.  Call if you have questions. Thanks.  Sara

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490

 -----Original Message-----
From: 	Beth Ng <Beth.Ng@morganstanley.com>@ENRON
Sent:	Thursday, November 01, 2001 3:05 PM
To:	Shackleton, Sara
Subject:	[Fwd: enron reconfirm]

Re:	Enron Liquid Fuels, Inc. to Enron North America Corp.

Sara:

As discussed, attached you will find the revised Confirmations showing
Enron North America Corp. as the party to the transactions instead of
Enron Liquid Fuels, Inc.

Should you or any member of your operations group have any questions,
please feel free to contact me or Laura Perilli.   If you find these
Confirmations in good order, please arrange for an authorized signatory
to sign the Confirmations and return them to my attention via facsimile
(212-507-4898).

Kind regards,
Beth

-------- Original Message --------
Subject: enron reconfirm
Date: Thu, 01 Nov 2001 15:27:50 -0500
From: Laura Perilli <Laura.Perilli@morganstanley.com>
Reply-To: Laura.Perilli@morganstanley.com
Organization: Morgan Stanley
To: Beth Ng <Beth.Ng@morganstanley.com>

Beth,

Attached, please find the reconfirmation of the trades discussed.
Please advise if anything else is needed.

Thanks,
Laura
 - 890762enronreconfirm.doc << File: 890762enronreconfirm.doc >>
 - 895029enronreconfirm.doc << File: 895029enronreconfirm.doc >>
 - 913463enronreconfirm.doc << File: 913463enronreconfirm.doc >>


We are ready to discuss your revisions to, and approval of, the AccuWeather
Agreement at your earliest.  Given our sense of urgency to sign these, your
feedback would be appreciated as soon as possible.

Thanks in advance,
Rahil
3-3206

---------------------- Forwarded by Rahil Jafry/HOU/ECT on 05/04/2000 09:05
AM ---------------------------

From:  Rahil Jafry
 05/02/2000 01:59 PM

To: Dave Samuels/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Mark
Holsworth/Corp/Enron@ENRON
cc:
Subject: Revised AccuNet Agreement

---------------------- Forwarded by Rahil Jafry/HOU/ECT on 05/02/2000 01:58
PM ---------------------------

Joan Dashner <dashner@accuwx.com> on 05/02/2000 11:51:06 AM
To: Rahil.Jafry@enron.com
cc:
Subject: Revised AccuNet Agreement

Rahil,

Attached is the revised AccuNet Agreement that you spoke to Lauralee
Snyder about.

 - EnronCorporation3.doc
 - dashner.vcf


Please send copies of the VNG demand charge invoices to Denise Dodson.

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


I want to thank everyone for their hard work during these trying times. Lots of our efforts in the past building systems, procedures and infrastructure pay off in times like these. Feedback from both Citibank and JPM/Chase and Enron's Board members has been very positive relative to RAC. Congratulations to all.

On another note I want to caution everyone in the group from making negative statements in the presence of ours and other groups, especially more junior members of these groups. Because they come from RAC they are not considered idle commentary and can be, and have been, damaging to morale to these people. We all speculate about the state of affairs and it is a good stress relief but we can not be a part of morale reducing behavior.

Things are not back to normal but they are improving. Upon receipt of commitment from banks, hopefully later today or early tomorrow, our short term issues should be resolved. Lots of activities are underway to address medium term and long term solutions. In the mean time, keep smiling.

Rick


Stan:
Its been a very interesting ride these last four and a half years here.  I received an offer from UBS, but decided to turn it down for personal reasons.  These last few weeks I have been with the estate working on selling certain assets.  Tomorrow is my last day with the estate and then I am off to Ohio and Cinergy to continue trading.  I will also begin to learn the oprations of Cinergy as well as go back and get an executive MBA at Chicago.  Ultimately, I want to learn more about the overall operations and effective energy risk management.
I just wanted to thank you for all you have done while I have been here.  I look back and think that I should have spent time in the pipeline group.  Even after all that has happened I certainly wouldn't change what I have experienced.  Thanks again for being such a good friend.  Hope you are doing well and good luck with everything.  I will send you my new information at Cinergy.  My Dad would love to hear from you sometime.
Regards,
Ben


Thanks for getting those tickets - it sounds like its going to be a great
opening day.  If you can FEDEX them to my office address that would be
great.  Do you know who has the Final Four tickets?  Thanks
Ben

Office Address:
Attn: Ben Rogers
Floor 3116d
Enron Corp
1400 Smith Street
Houston, TX 77002


Pablo,

Have we made any progress on finding out why the Northwest website is not
accessible before 7 am?  For your reference the error message is below.

The address is http://www.1line.williams.com/webbi/ebb/main.

Error 500--Internal Server Error
From RFC 2068 Hypertext Transfer Protocol -- HTTP/1.1:
10.5.1 500 Internal Server Error
The server encountered an unexpected condition which prevented it from
fulfilling the request.

Thanks.

Mat