National Journal's CongressDailyAM
Issue date: June 8, 2001

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APPROPRIATIONS
With Few Exceptions, House Approps Panels To Follow Bush Lead
   The House Appropriations Committee has developed subcommittee
spending allocations for FY02. While essentially in line with
President Bush's requests, they differ in some cases by billions
of dollars. In allocations being released today, House
appropriators are recommending $3 billion more than Bush wanted
for Labor-HHS, $1.1 billion more for VA-HUD and $1.2 billion more
for Energy and Water.
   The so-called 302(b) allocations, which the Appropriations
Committee should mark up by next week, divide the $661.3 billion
set aside in the budget resolution for total discretionary
appropriations among the 13 Appropriations subcommittees. The
proposed subcommittee allocations in the budget Bush submitted in
April, however, were based on his request that total FY02
spending be kept to $660.6 billion.
   The expected allocations are listed below by subcommittee. All
numbers are expressed in budget authority, followed by the Bush
administration proposal:
   Agriculture: $15.5 billion, compared to the Bush proposal of
$15.4 billion. Commerce-Justice-State: $38.5 billion, compared to
$37.9 billion. Defense: $300.3 billion, $301 billion. District of
Columbia: $380 million, $300 million.
   Energy and Water: $23.7 billion, $22.5 billion. Foreign
Operations: $15.2 billion, the same as Bush proposed. Interior:
$18.9 billion, $18.1 billion. Labor-HHS: $119.7 billion, $116.4
billion.
   Legislative Branch: $2.9 billion, $3 billion. Military
Construction: $10.2 billion, $9.6 billion. Transportation: $14.9
billion, $16.2 billion. Treasury-Postal: $16.9 billion, $16.6
billion. VA-HUD: $84.2 billion, $83.1 billion.
   Meanwhile, on the FY01 front, House Appropriations Chairman
Young and Defense Appropriations Subcommittee Chairman Jerry
Lewis, R-Calif., both said Thursday that they intend to stick to
the president's supplemental appropriations recommendation,
despite rumblings from some defense hawks that the Bush
administration's nearly $7 billion FY01 supplemental spending
request shortchanges the military.
   The supplemental would provide a total of  $6.1 billion for
defense, partially offset by $505 million in defense cuts.
   House Armed Services Military Readiness Subcommittee Chairman
Curt Weldon, R-Pa., called the request "totally inadequate,"
saying the needs are at least $10-15 billion.  Congress ought to
provide more money using an emergency designation, he said.
   But constrained by the budget caps and the administration's
admonitions to Congress not to abuse the emergency designation,
Young and Lewis said they plan to keep the supplemental to the
president's requested level.
   "We've got to be in the real world," said Lewis.
   The emergency designation allows money to be appropriated but
not counted against the cap.
   Lewis added that he is aiming for a full committee markup as
early as next week and conference with the Senate by July 4th.
   Should Congress add substantially to the supplemental, Chief
Deputy Majority Whip Roy Blunt, R-Mo., one of the
administration's allies on the Hill, said the president would be
eager to show his commitment to fiscal discipline with a veto.
   "The president won't be hesitant to veto an early bill," Blunt
said. "I think they're looking for an early opportunity to show
their commitment to discipline on spending. I wouldn't be at all
surprised, if we gave them the opportunity with the supplemental,
[to see a veto]."
   In the Senate, where OMB Director Daniels met briefly Thursday
with Appropriations Chairman Byrd and ranking member Ted Stevens,
R-Alaska, a senior Senate aide predicted the Senate also would
stick with the president's overall number on the supplemental.
   Daniels, who has insisted that the FY01 supplemental be kept
to "true current-year needs" and stay within the budget caps,
defended the supplemental as it was submitted to Congress.
   "I think Congress is going to see that these items are about
the right ones," Daniels said. -- By Lisa Caruso
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HOUSE LEADERSHIP
Senate Storm Only A Drizzle In House
   Despite Minority Leader Gephardt's plea this week for a new
era of bipartisan collaboration, the Democratic takeover of the
Senate is unlikely to have much impact on partisan relations in
the House, according to House Republican leaders with close ties
to the Bush White House.
   In fact, one key leader, House Chief Deputy Majority Whip Roy
Blunt, R-Mo., said House Republicans feel liberated to pass
legislation more to their liking.
   "Those of us on the House side feel we have an increased
opportunity to get our work done without having to give
overwhelming consideration to how it impacts the Senate," Blunt
said. "Not that we won't be considerate, but there won't be
overwhelming consideration. Previously, we held back on some
things in consideration of Senator Lott's challenges."
   Blunt, who is a key liaison between congressional Republicans
and the White House, said he expected the House to pass an energy
bill, a prescription drug benefit, a campaign finance reform
measure--and perhaps legislation to make permanent this year's
package of tax cuts--all before the August recess.
   "These will all be placed on Mr. Daschle's desk before we go
home for the August break," Blunt said, suggesting the pressure
will be on the Senate Democratic leadership to come to terms with
bills backed by the House and President Bush.
   House Speaker Hastert sketched out a similar agenda for the
balance of the year in an interview Thursday--mentioning energy,
prescription drugs and campaign finance reform as well as a
patients' bill of rights and renewal of presidential trade
negotiating authority as top priorities.
   He also spoke favorably about a cost-of-living increase for
members of Congress, a subject he discussed earlier in the day
with Gephardt. Lawmakers "ought to be able to keep up with the
cost of living so that they can take care of their families and
provide for their families like everybody else does,'' Hastert
said. "I think that's the decent thing to do.''
   Rep. Rob Portman, R-Ohio, who chairs House GOP leadership
meetings, told CongressDaily that the most tangible difference
since Sen. James Jeffords, I-Vt., decided last month to bolt the
Republican Party was "a little more sensitivity by the White
House and our leadership in reaching out to moderates...Where you
might see a little change is the sensitivity to the fact that we
are a diverse party and we need to listen to both wings."
   Gephardt said this week that Jeffords' move could "embolden"
GOP moderates in the House to work with Democrats.
   But Portman, who served in the administration of Bush's father
and has strong ties to the current White House, noted that
moderate GOP Rep. Deborah Pryce of Ohio already serves in the
elected leadership as Conference secretary.  And Rep. Doug Ose,
R-Calif., serves as a liaison from the moderate wing to the GOP
leadership.
   "We've already formalized something that the Senate
[Republicans] are just now formalizing," Portman said in
reference to the appointment of Sen. Arlen Specter, R-Pa., as the
moderates' representative within leadership. Portman did not
indicate that any new approach to the House Democratic leadership
was imminent.
   In the two weeks since Jeffords' switch, House Republican
moderates have praised Hastert's leadership of and played down
any tensions within their Conference.
   Rep. Michael Castle, R-Del., for example, said he thought the
Senate switch ultimately would allow Bush to play to his strength
as a master of compromise--but, in the meantime, expressed
confidence in the way House GOP leaders were handling the agenda.
   "Our moderates went to Jeffords and their message was, `Our
views are being taken into consideration,'" Blunt said, pointing
to efforts by Reps. Christopher Shays and Nancy Johnson of
Connecticut, among others, to persuade Jeffords to stay put.
   Gephardt this week said he stood "with olive branches in both
hands," but that the House Republican leadership has stiff-armed
Democrats at both the leadership and committee levels.
   "Civility has been improved, but we haven't had real
bipartisanship," Gephardt told reporters.
   House Republicans did not exactly thrash Gephardt with those
olive branches, but they did make clear that they have a
different definition of bipartisanship.
   "Look at the number of bipartisan meetings we held over the
first six months [of 2001]," said one White House aide, who noted
that Karl Rove, Bush's top political adviser, has been keeping
score of all the meetings with Democrats. "Clinton's numbers [of
meetings with Republicans] just pale in comparison....We did a
lot to advance bipartisanship over the first six months and we'll
just keep on doing it."
   Portman said: "I don't buy [Gephardt's] premise. The two most
important bills, education and taxes, were not rammed through on
party-line votes."
   But a source close to the Blue Dog Coalition of conservative
House Democrats reiterated that group's complaint that
Republicans have refused to consult with them on the development
of legislation.
   The Blue Dog source said the House GOP leadership already has
made clear that it will not pursue a more cooperative strategy.
   A House Democratic leadership source said: "It's been clear
for a long time that the Republican leadership has never showed
any interest in bipartisan cooperation. It may take them awhile
to come around."
   The source said the problem extended to the other end of
Pennsylvania Avenue, as well, declaring, "The president has given
Democrats and moderates pats on the back and nicknames, and he's
given conservative Republicans a tax cut and the Justice
Department." -- By Charlie Mitchell
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HOUSE RACES
Largent Will Resign From House, Calls For Early Special Election
   Setting the stage for the House's seventh special election
this year, Republican Rep. Steve Largent announced Thursday that
he will resign his Tulsa-based 1st District seat in November to
concentrate on his race for Oklahoma governor.
   "It is my opinion that the race for governor will become a
full-time endeavor in the months ahead," Largent said.
"Therefore, today I announce my plan to resign ... on Nov. 29,
exactly seven years to the day I was first sworn into Congress."
   Largent called on the state Legislature and GOP Gov. Frank
Keating to pass a law in the Legislature's upcoming special
session, to schedule a special election before Largent's
effective resignation date.
   "I will make such a request in writing soon to encourage them
to allow the election to take place prior to my actual
resignation, as was done in 1994 with [former Democratic Sen.]
David Boren's departure from the U.S. Senate," Largent said.
   "This action would ensure that the 1st District is never
without representation in Washington," Largent said.
   Largent, formerly a record-setting wide receiver for the
Seattle Seahawks, entered the House when GOP Sen. James Inhofe
resigned the House seat to assume Boren's Senate seat.
   During his tenure, Largent has earned a reputation as a
champion of Christian conservative causes. He has occasionally
bucked his party's leadership and supported the 1997 coup attempt
against former House Speaker Gingrich. He unsuccessfully
challenged House Majority Leader Armey in 1998.
   In his resignation announcement, Largent said he would remain
neutral in the GOP primary, which already has grown contentious
in anticipation of Largent's gubernatorial run.
   The Republican field for Largent's seat includes state Rep.
John Sullivan, state Sen. Scott Pruitt and Oklahoma First Lady
Cathy Keating, the wife of the Republican governor, whose term is
up in 2002.

   National Republican Congressional Committee Chairman Tom Davis
of Virginia Thursday called the seat "strongly Republican,"
noting that Largent never had received less than 62 percent of
the vote in the district.
   Nonetheless, at least two Democrats have considered entering
the race.
   Tulsa School Board member Doug Dodd appears to be the likely
Democratic nominee, while former Tulsa County Democratic Party
leader Tim Gilpin does not appear inclined to run.
   Oklahoma Democratic Chairman Jay Parmley said Oklahoma
Democrats would have to work hard to convince national Democrats
they can win the seat, but he was confident about the prospects.
   "That seat is competitive for Democrats," Parmley said. "Make
no mistake about it."
   During the 107th Congress, the deaths of Reps. Julian Dixon,
D-Calif., Norman Sisisky, D-Va., and Joe Moakley, D-Mass., have
necessitated special elections.
   Largent joins former Rep. Bud Shuster, R-Pa., and Rep. Joe
Scarborough, R-Fla., in retirement announcements.
   Rep. Asa Hutchinson, R-Ark., also is expected to resign his
seat to accept a position in the Bush administration (see related
article, below). -- By Mark Wegner
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JUDICIARY
Hutchinson's Promotion May Suspend Liability Legislation
   The impending departure of Rep. Asa Hutchinson, R-Ark., whose
nomination to head the Drug Enforcement Administration is
expected to be confirmed by the Senate, has left the business
community scrambling to find a new champion for a comprehensive
bill to limit legal liability for business.
   Hutchinson is the chief House sponsor of legislation backed by
the National Federation of Independent Business and the National
Association of Wholesalers. It would cap punitive damages for
small businesses and for product sellers.
   Introduced last month, the bill restricts punitive damages
against businesses with fewer than 25 employees and limits awards
to three times the total amount awarded for economic damages or
$250,000, whichever is less.
   Sens. Joseph Lieberman, D-Conn., and Mitch McConnell, R-Ky.,
are sponsors of a similar bill in the Senate. However, the loss
of Hutchinson, a high-profile member of the House Judiciary
Committee and a visible spokesman for legal reform, is a blow for
bill proponents, observers said this week.
   And the loss is even more significant, they say, given the
shift in power to Senate Democrats and its likely implications
for legal reform legislation in general.
   The task of gathering the votes to secure cloture for the most
viable of the pending legal reform measures--on product liability
and class action reform--was considered daunting in a closely
divided Senate. But with Democrats controlling the agenda,
numerous sources have surmised that securing either hearing
commitments or floor time in that chamber may be nearly
impossible.
   At the same time, some observers noted, the bipartisan appeal
of the small business community--combined with President Bush's
expected effort later in his term to advance his civil-justice
reform agenda--could help move the ball on some piecemeal
reforms.
   This is not the first time this year that supporters of
product liability legislation have had to hunt for congressional
sponsors: The legislation's sponsors in the past Congress
included former Rep. James Rogan, R-Calif., and former Sens. John
Ashcroft, R-Mo., and Spencer Abraham, R-Mich., all of whom lost
their 2000 re-election bids. -- By Pamela Barnett
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LABOR
GOP Praises Chao On Ergonomics Forums; Dems Seek New Rule
   House Education and the Workforce Chairman Boehner and
Workforce Protections Subcommittee Chairman Charlie Norwood, R-
Ga., praised Labor Secretary Chao's decision to hold three public
forums on ergonomics next month and develop a course of action by
September.
   "We know Secretary Chao will use these hearings to search for
a consensus approach that protects workers without jeopardizing
their jobs or placing America's economy in an ill-conceived
regulatory straightjacket," they said in a joint statement.
   "We are bringing everyone to the table to get this important
issue moving forward and resolved," Chao said Thursday.
   But Democrats were more circumspect.
   "We hope this is not just the policy of procrastination--
that's what we want to avoid," said John Lawrence, minority staff
director of the House Education and the Workforce Committee. "If
it's the first step to getting to a rule, then we welcome it."
   Ranking member George Miller, D-Calif., and Sen. Edward
Kennedy, D-Mass., sent a letter to Chao in April, urging her to
issue a new rule. But Chao has not committed herself to doing so.
   After Congress voted in March to eviscerate the Clinton
administration ergonomics rules, which would have required
employers to prevent and compensate employees who experienced
problems such as repetitive-stress disorders, Chao promised to
review them and issued a set of guiding principles on the issue.
   The principles that Chao says ergonomics action should be
based on are: prevention, sound science, incentive-driven,
flexibility, feasibility and clarity.
   A strong advocate of the Clinton rule, the AFL-CIO is
"analyzing the recent announcement" and will "respond in the very
near future," said Jay Power, the union's legislative
representative.
   Manufacturers, who opposed the Clinton rule, have said in the
past that they would welcome the opportunity to revisit the
issue.
   The forums will be held in Washington July 16, Illinois July
20 and California July 24. -- By April Fulton
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HEALTH
FDA Officials Issue Public Safety Warning On Mailed Drugs
   As legislators in the House and Senate gear up for another
attempt to relax a 1988 law that bars the reimportation of U.S.-
made prescription drugs, federal officials told a House Commerce
subcommittee that the volume of drugs being sent through the mail
has already overwhelmed their ability to ensure the public's
safety.
   "We estimate that approximately two million parcels containing
FDA-regulated products for personal use enter the U.S. each year
through international mail facilities that Customs could set
aside for FDA review for possible violations" of law, FDA Senior
Associate Commissioner for Policy William Hubbard told the House
Energy and Commerce Oversight and Investigations Subcommittee.
   Because that is far more than FDA officials can inspect,
Hubbard testified, "the tens of thousands of parcels that FDA
does not review are eventually released by Customs and sent on to
their addresses," despite potential risks.
   Hubbard's testimony included the agency's strongest language
yet about what it perceives as the serious public health risk of
individuals using the Internet or other means to purchase
prescription drugs from overseas. Such drugs, he said, "may be
contaminated, subpotent, superpotent or counterfeit."
   "FDA and the public do not have any assurance that unapproved
products are effective or safe, or have been produced under U.S.
good manufacturing practices," he testified. "U.S.-made drugs
that are reimported may not have been stored under proper
conditions, or may not be the real product, because the [United
States] does not regulate foreign distributors or pharmacies."
   In a pilot project in California earlier this year, FDA
examined approximately 1,900 of some 16,000 packages flagged as
suspicious by Customs officials. Hubbard testified that some of
those packages contained drugs that could not be identified,
drugs with labeling only in foreign languages, and drugs that
have been specifically rejected for approval in the United States
by the FDA.
   "Several shipments contained three drugs that were once
approved by FDA but have been withdrawn from the market based on
serious safety concerns," he testified.
   Republicans and Democrats on the subcommittee were united in
their outrage over the situation.
   For sellers of such dangerous products over the Internet, said
Subcommittee Chairman Jim Greenwood, R-Pa., "Their motto might
very well be `there's a sucker logging on every minute.'"
   Last month, Greenwood, subcommittee ranking member Peter
Deutsch, D-Fla., and Rep. Bart Stupak, D-Mich., toured the
international mail facility at Dulles Airport, and "what we found
was truly frightening," Greenwood said, including pills hidden in
carbon paper in a failed attempt to evade detection.
   Energy and Commerce ranking member John Dingell, D-Mich.,
whose investigations as head of the oversight committee led to
the 1988 law making reimportation illegal, said the new
information shows that regulation needs to be tightened rather
than loosened.
   But while Dingell called last year's legislative attempt to
overturn the 1988 law a "misguided effort to attempt to lower
prices by opening up our borders," he said Congress must
recognize that individuals are turning to foreign drugs because
they cannot afford to buy them in the United States. -- By Julie
Rovner
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HEALTH
Bilirakis Panel `Open-Minded' On Addressing Generic Drug Law
   Although some members of Congress and the brand-name
pharmaceutical companies are skeptical, the House Energy and
Commerce Committee is keeping its options open to add drug patent
reform to a Medicare prescription drug bill that it is drafting
as a way to save money.
   "We do feel we should learn enough about them [the generic
drug issues]; that's why we're having the hearing next week,"
said House Energy and Commerce Health Subcommittee Chairman
Michael Bilirakis, R-Fla.
   The committee is holding a Wednesday hearing on drug issues
and hopes to have the outline of its prescription drug bill plan
"in the next few days" following the hearing, he said.
   "We're trying to stay open-minded," Bilirakis said.
   But Rep. Henry Waxman, D-Calif., said he worries about opening
up the 1984 drug patent law he wrote with Sen. Orrin Hatch, R-
Utah, particularly in the context of a broader Medicare
prescription drug bill.
   "It's not a natural fit," Waxman said.
   However, Waxman said the law might have some problems that
should be addressed.
   These include a 30-month stay that prevents generic products
from coming to market if a brand-name company claims a patent
infringement, and the 180-day period during which the first
producer of a generic drug on the market can prevent others from
competing with it.
   Hatch and Sen. Edward Kennedy, D-Mass., now the chairman of
the Health, Education, Labor and Pensions Committee, where the
issue could pop up on the Senate side, have expressed
reservations about opening the bill in the past.
   The brand-name drug industry has not shown much interest in
revamping the Hatch/Waxman law, but the generic drug companies
argue they are being unfairly barred from the market through
patent challenges.
   But brand-name advocates are bracing for a fight against any
such move. A spokesman for the Pharmaceutical Research and
Manufacturers of America said it "would only jeopardize
prescription drug coverage for seniors."
   Sens. Charles Schumer, D-N.Y. and John McCain, R-Ariz., and
Reps. Jo Ann Emerson, R-Mo., and Sherrod Brown, D-Ohio, recently
introduced bills to help generic drugs get to market sooner.
   Schumer said this week that prospects for the bills improved
with Democratic control of the Senate, but Senate aides said no
official discussions have taken place since the changeover. -- By
April Fulton
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TRADE
EU Officials Worried By Bush Steel Probe, U.S. `Unilateralism'
   Swedish Ambassador to the United States Jan Eliasson and
European Union Trade Commissioner Pascal Lamy both said Thursday
that President Bush's decision to launch a Section 201
investigation of steel imports is likely to put a damper on next
week's EU-U.S. summit.
   Eliasson, said the steel decision would be "troublesome" to a
planned discussion on how the world's two largest trading
partners can avoid trade disputes and advance a new trade round.
   Eliasson, who represents all 15 EU member countries while
Sweden holds the group's presidency for the six months ending
June 30, spoke to reporters Thursday at an embassy briefing in
advance of the summit in Gothenberg, Sweden.
   Eliasson also said that developing a joint EU-U.S. statement
on global warming and the future of the Kyoto Protocol is proving
to be the most difficult aspect of pre-summit negotiations.
   Eliasson said the Europeans see "no alternative" to continuing
the Kyoto Protocol talks, which Bush has rejected. Eliasson also
said Bush must expect environmental protesters in Gothenburg.
   Lamy, who was in Washington for meetings on Capitol Hill, told
an Economic Strategy Institute luncheon, "We in Europe do not
accept the assumption that imports are the cause of the [steel]
problem."
   The European Union, he noted, has cut 50 million tons of
capacity and eliminated 750,000 jobs in the steel industry
without introducing import restrictions.
   Lamy said it would serve a purpose "to get the facts of this
troubled world industry out into the open."
   The European Union had proposed to the United States that the
fact finding process take place in the Organization for Economic
Development and Cooperation, Lamy said, but never received a
reply to its suggestion.
   Asked at a news conference after his speech about reports that
Bush initiated the steel action to get votes for trade
negotiating authority and to help launch a new round of trade
talks, Lamy said, "If at the end of the day, the European
steelworkers have to pay this way, I'm not sure the new round
will be very popular in Europe."
   Lamy also said the Europeans "are becoming concerned about
what we feel are growing pressures on this side of the Atlantic
toward unilateralism."
   Responding to speculation that the United States and the
European Union would make an announcement in Gothenburg about
launching a new round, Lamy said that would be "premature."
   Eliasson said Bush and European officials would discuss
foreign policy in the western Balkans, the Middle East and
Russia, the Korean Peninsula, the spread of HIV in Africa, and
the death penalty as well as trade policy and climate change. --
By Jerry Hagstrom
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SENATE LEADERSHIP
Senate GOP Offers Plan For Nominees In Organizing Talks
   Senate Republican negotiators have agreed among themselves on
what formal assurances to seek from Democrats that the Senate
will take up President Bush's nominees quickly.
   But they have yet to reach a final agreement with Majority
Leader Daschle on a new organizing resolution for the Senate.
   Sen. Phil Gramm, R-Texas, said Thursday that Republicans were
delivering to Daschle a GOP-drafted document dealing with Bush
nominations. Senators said the document would be the basis for
some sort of memorandum of understanding or other formal
statement about nominees.
   Although Democrats did not have a direct hand in drafting the
statement, the general concepts have been negotiated during two
meetings between Daschle and a five-member GOP negotiating team.
   "The concepts that we've discussed with [Daschle] ... were not
turned down," said Sen. Pete Domenici, R-N.M.
   Domenici said the two sides were "getting close," and the GOP
proposal was "trying to reflect the views of all of the senators
that we talked to."
   A GOP aide said the goal was to have the Senate pass a new
organizing resolution Tuesday. That would provide time for the
two sides to come to a final agreement that could be vetted by
the entire Democratic Caucus and the GOP Conference, which meet
separately Tuesday.
   Both sides said the process has gone smoothly, a reflection of
a GOP decision to drop threats of a filibuster and demands that
any agreement include a mechanism to guarantee the swift movement
of nominees. -- By Geoff Earle
-=-=-=-=-=-=-=-

POLITICS
Bush To Nominate Veteran GOP Aide To Head SSA
   The White House announced Thursday that President Bush intends
to nominate Jo Anne Barnhart to a six-year term as head of the
Social Security Administration--which pumps out $450 billion a
year to 45 million, mainly elderly, pension recipients.
   Barnhart's appointment as Social Security commissioner is
subject to Senate confirmation.
   The commissioner's job is always a sensitive position because
of the vast administrative responsibility to make the checks go
out on time and keep the records straight.  But with the
president and congressional Democrats poised for a possible
battle over his plan to introduce personal stock-market accounts
to the system, the job could be even tougher than normal.
   Barnhart is a veteran GOP administrator of social programs
with strong links to ex-Sen. William Roth, R-Del. She was a
legislative assistant to Roth from 1977-1981 and ran his re-
election campaigns in 1988, 1994 and 2000. She served as
political director of the National Republican Senatorial
Committee during the 1995-96 cycle.
   Barnhart also has held social program positions in the federal
government:  Her highest post was HHS assistant secretary for
children and families 1990-93. Barnhart is currently a member of
the Social Security Advisory Board, which advises the president,
Congress and the commissioner on matters related to Social
Security and Supplemental Security Income.
-=-=-=-=-=-=-=-

POLITICS
Census Monitoring Board Study Questions Statistical Sampling
   Republican members of the Census Monitoring Board Thursday
released a report that they say bolsters the accuracy of the 2000
decennial census and questions the methodology of statistical
sampling.
   Board member David Murray questioned the "post-strata"
adjustment factors the bureau was going to use to calculate how
many people live in a specific geographical area.
   "Adjusting data for persons from New York City with data from
persons in Miami and Seattle has troubling implications,
especially when there are important geographic dimensions in the
use of census data," Murray said.
   Sampling means taking a comprehensive survey of the nation's
population and using the common characteristics of people in one
area to extrapolate the likely makeup of other, similar census
blocks.
   Board co-chairman Mark Neuman called the 2000 census "the most
accurate census in history" and said Census Bureau experts were
right to recommend against releasing sampling data for
congressional redistricting.
   Facing a statutory deadline to deliver census data, a special
bureau panel recommended in early March against releasing sampled
data, concluding that it could not endorse sampling as more
accurate than traditional data.
   Democratic supporters of sampling have vigorously argued that
with more time, statisticians might be able to validate the
sampling data.
-=-=-=-=-=-=-=-

TRANSPORTATION
Mica Schedules June Hearing To Evaluate Airline Improvements
   House Transportation and Infrastructure Aviation Subcommittee
Chairman John Mica, R-Fla., has scheduled a June 20 hearing to
give legislators the opportunity to evaluate the progress the
airlines are making in improving customer service.
   The hearing was scheduled in the wake of the airlines'
unveiling Thursday of a new series of voluntary commitments to
improve service, along with an agreement to make these service
commitments legally enforceable by including them in customer
contracts.
   The House Transportation and Infrastructure Committee approved
legislation earlier this year granting airlines limited antitrust
immunity to discuss and coordinate flight schedules; Mica said he
expected a floor vote during the week of July 9. The House
Judiciary Committee has received a referral on that bill, but the
referral expires July 9.
-=-=-=-=-=-=-=-

POLITICS
GOP Lawmakers Introduce Legislation On Monuments
   House Resources Chairman Hansen and nine other lawmakers
announced the filing of the National Monument Fairness Act
Thursday.
   "The American people deserve a voice in how their own public
lands are managed," said Hansen. "The bill gives them that voice.
Under this bill, when a president creates a monument larger than
50,000 acres, he must solicit input from the public and the
affected governor and congressional delegation."
   The bill also gives Congress two years to approve the
monument. After that time, if Congress has not approved the
measure, the president's proclamation sunsets.
   "This means people who don't want a big monument in their
state can talk to their local leaders, their governor or their
congressional delegation," said Hansen.
   At a news conference, Hansen was joined by an original sponsor
of the bill, Rep. Mike Simpson, R-Idaho, along with GOP Reps.
George Radanovich of California, Greg Walden of Oregon, Chris
Cannon of Utah, Jim Gibbons of Nevada, Dennis Rehberg of Montana
and Jeff Flake of Arizona.
-=-=-=-=-=-=-=-
FLOOR SCHEDULE

*SENATE*
Convenes at 10:30 a.m. for morning business. No votes are
expected.

*HOUSE*
Convenes at 10 a.m. for a pro forma session.

TODAY
=SENATE COMMITTEES=
None.

=HOUSE COMMITTEES=
Energy and Commerce
Energy Policy
Energy and Air Quality Subcommittee hearing on the national
energy policy. 2123 RHOB. 10 a.m. Contact: 202-225-2927.
(Canceled.)
Government Reform Committee and Senate Governmental Affairs
DC Government
House Government Reform Committee's District of Columbia
Subcommittee and Senate Governmental Affairs Committee's
Oversight of Government Management, Restructuring and the
District of Columbia Subcommittee joint hearing on the outlook
for the District of Columbia government. 2154 RHOB. 11 a.m.
Contact: 202-225-5074.

ON THE HILL TODAY

BUDGET
News conference on upholding vetoes of funding bills.
Participants: Sens. Jim Bunning, R-Ky., and George Voinovich, R-
Ohio. Senate Radio/TV Gallery. 11 a.m. Contact: 202-224-4343.
(New.)

DEFENSE
Center for Strategic and International Studies news conference to
release its report, "Computer Exports and National Security in a
Global Era: New Tools for a New Century." Participants: John
Hamre, president/CEO, CSIS, and Brent Scowcroft, former national
security adviser. 430 DSOB. 2 p.m. Contact: 202-775-3242.

HEALTH
News conference on stem cell research. Participant: Rep.
Christopher Smith, R-N.J. House Triangle, Capitol. 10 a.m.
Contact: 202-225-3765.

Senate Leadership
Senate Democrats dugout news conference. Participant: Senate
Majority Leader Daschle. S-224, Capitol. 10:30 a.m. Contact: 202-
224-5556. (New.)

SOCIAL ISSUES
American-Arab Anti-Discrimination Committee national convention,
"Impacting U.S.-Arab Relations: The Role of Arab Americans."
Highlights:, noon, Rep. James Moran, D-Va., Human Rights award;
Mary Ramadan, "Pro-bono Attorney of the Year;" and Jennifer
Granholm, Michigan attorney general, speaker. Crystal Gateway
Marriott, 1700 Jefferson Davis Highway, Arlington. 9 a.m.
Contact: 202-244-2990.

OFF THE HILL TODAY:
FOREIGN AFFAIRS
National Press Club Morning Newsmaker Program, "NATO Enlargement,
the Political and Security Situation in Central and Southeast
Europe Prior to the Visit of George Bush to Europe." National
Press Club. 9 a.m. Contact: 202-662-7593.

SOCIAL ISSUES
District of Columbia Bar Assn. breakfast with House District of
Columbia Subcommittee chairman. Participant: Rep. Constance
Morella, R-Md. Hogan and Hartson, 555 13th St., NW. 8 a.m.
Contact: 202-626-3463.

Institute for Women's Policy Research, "The Status of Women:
Facing the Facts, Forging the Future." Highlights:, 9 a.m., Labor
Secretary Chao, keynote speaker, and Shinea Chun, director,
Women's Bureau, Labor Department; Linda Chavez-Thompson,
executive vice president, AFL-CIO; 12:15 p.m., Ann Lewis, former
White House communications director/Annenberg School of
Communications. Capital Hilton Hotel, 16th and K Sts., NW. 9 a.m.
Contact: 202-785-5100. (Revised.)

MONDAY
=SENATE COMMITTEES=
None.

=HOUSE COMMITTEES=
None.

ON THE HILL MONDAY:

HEALTH
National Health Council lunch briefing and health information
fair to present top priorities of patient-based voluntary health
organizations for the 107th Congress. SC-5 Capitol. Noon.
Contact: 202-973-0542.

TAXES
The Club for Growth panel discussion, "Is the Bush Tax Cut
Enough?" Participants: Stephen Moore, the Club for Growth;
Charles Cook, National Journal; Al From, Democratic Leadership
Council; and Grover Norquist, Americans for Tax Reform. 2237
RHOB. 10 a.m. Contact:  703-5920. (New.)

OFF THE HILL MONDAY:
Environment
Sierra Club news conference to release its report, "Spoiled
Lunch," regarding allegations of pollution, food contamination
and worker safety violations at slaughterhouses and processing
plants contracted by Agriculture Department to supply School
Lunch Program and other food programs. National Press Club, East
Room. 10 a.m. Contact: Ed Hopkins, 202-675-7908. (New.)

FOREIGN AFFAIRS
National Press Club Newsmaker Program holds a discussion on U.S.-
Russian relations on the eve of President George Bush's first
meeting with Russian President Vladimir Putin. Participant: Rep.
Tom Lantos, D-Calif. National Press Club. 1 p.m. Contact: 202-
662-7593.

SOCIAL ISSUES
Greater Washington Society of Assn. Executives, evening with four
Nobel Prize laureates. Participants: Lech Walesa, former
president, Poland; Oscar Arias, former president, Costa Rica;
Jody Williams, founding coordinator, International Campaign to
Ban Landmines; and Betty Williams, Northern Ireland peace
advocate, with Pat Mitchell, president, Public Broadcasting
System, moderator. Kennedy Center, Rock Creek Parkway at Virginia
Ave., NW, Concert Hall. 8 p.m. Contact: 202-828-4642.

Project $1.1 Billion Recovery and Maryland Taxpayers Assn. news
conference to release a statewide poll showing opposition to
Baltimore Orioles owner Peter Angelos receiving $1.1 billion
legal fee for role in Maryland's $4.4 billion national tobacco
settlement share and outline plans to raise funds for a court
challenge, lobby state legislature to overturn agreement and call
for boycott of Orioles games until Angelos agrees to take his fee
out of tobacco settlement lawyers fund. National Press Club,
Lisagor Room. 9:30 a.m. Contact: 703-757-5130.

TUESDAY
=SENATE COMMITTEES=
None.

=HOUSE COMMITTEES=
Education and the Workforce
ERISA
Employer-Employee Relations Subcommittee hearing on employee
health coverage. 2175 RHOB. 10:30 a.m. Contact: 202-225-4527.
Financial Services
Defense Production Act
Domestic Monetary Policy, Technology and Economic Growth
Subcommittee hearing. (No new date announced.) 2128 RHOB. 9:30
a.m. Contact: 202-225-7502. (Postponed.)
Africa Development
International Monetary Policy and Trade Subcommittee hearing on
FY02 authorization requests for the international financial
institutions and activities of the African Development Bank,
World Bank and International Monetary Fund in Africa. 2128 RHOB.
2 p.m. Contact: 202-225-7502. (New.)

GOVERNMENT REFORM
DNA Technologies
Government Efficiency, Financial Management and Intergovernmental
Relations Subcommittee hearing on how effectively states and
federal agencies are working together to implement the use of new
DNA technologies. 2154 RHOB. 10 a.m. Contact: 202-225-5074.

INTERNATIONAL RELATIONS
Foreign Policy
East Asia and the Pacific Subcommittee hearing on U.S. foreign
policy in East Asia and the Pacific. (Rescheduled from June 5.)
2172 RHOB. 10 a.m. Contact: 202-225-5021

RESOURCES
Gas/Oil Royalties
Energy and Mineral Resources Subcommittee hearing on collection
and disposition of federal oil and gas royalties taken in-kind.
1324 LHOB. 10 a.m. Contact: 202-225-2761.

Pending Legislation
National Parks, Recreation and Public Lands Subcommittee hearing
on H.R.271, to direct the Secretary of the Interior to convey a
former Bureau of Land Management administrative site to the city
of Carson City, Nev., for use as a senior center; H.R.980, to
establish the Moccasin Bend National Historic Site in the State
of Tennessee as a unit of the National Park System; H.R.1668, to
authorize the Adams Memorial Foundation to establish a
commemorative work on Federal land in the District of Columbia
and its environs to honor former President John Adams and his
family. 1334 LHOB. 10 a.m. Contact: 202-225-2761

SCIENCE
Energy Policy
Energy Subcommittee hearing on the president's national energy
policy. 2318 RHOB. 10 a.m. Contact: 202-225-6371.

Space Launch
Space and Aeronautics Subcommittee hearing on the space launch
initative. 2318 RHOB. 2 p.m. Contact: 202-225-6371

WAYS AND MEANS
Rural Health Care
Health Subcommittee hearing on rural health care. 1100 LHOB. 10
a.m. Contact: 202-225-3625.

Energy Conservation/Supply
Select Revenue Measures Subcommittee hearing on the effect of
federal tax laws on the production, supply and conservation of
energy. 1100 LHOB. 2 p.m. Contact: 202-225-3625.
(Tentative.)

WEDNESDAY
=SENATE COMMITTEES=

APPROPRIATIONS
Army Budget Overview
Defense Subcommittee hearing on FY02 appropriations for Army
budget overview. (Rescheduled fromm April 25). 192 DSOB. 9:30
a.m. Contact: 202-224-3471.

EPA
VA-HUD Subcommittee hearing on FY02 appropriations for the EPA.
Witness: EPA Administrator Whitman. 138 DSOB. 10 a.m. Contact:
202-224-3471

BANKING
Ferguson Nominations
Full committee hearing on the nomination of Roger Walton Ferguson
Jr. to be a member of the Board of Governors of the Federal
Reserve System. 538 DSOB. 10 a.m. Contact: 202-224-7391

FOREIGN RELATIONS
Macedonia and Balkans
Full committee hearing on the current situation in Macedonia and
the Balkans. 419 DSOB. 10:15 a.m. Contact: 202-224-4651. (New.)

GOVERNMENTAL AFFAIRS
Energy Industries
Full committee hearing to examine economic issues associated with
the restructuring of energy industries. 342 DSOB. 9:30 a.m.
Contact: 202-224-4751. (New.)

INDIAN AFFAIRS
Oklahoma Nomination
Full committee hearing on the nomination of Neal McCaleb to be
assistant secretary of the Interior Department for Indian
affairs. 485 RSOB. 9:30 a.m. Contact: 202-224-2251. (New.)

JUDICIARY
Death Penalty Disparities
Constitution, Federalism and Property Rights Subcommittee hearing
to examine racial and geographic disparities in the federal death
penalty system. 226 DSOB. 10 a.m. Contact: 202-224-5225. (New.)

=HOUSE COMMITTEES=

AGRICULTURE
Peanut Program
Specialty Crops and Foreign Agriculture Programs Subcommittee
hearing to review the peanut program. 1300 LHOB. 10 a.m. Contact:
202-225-2171.

Energy and Commerce
National Energy Plan
Energy and Air Quality Subcommittee hearing on President Bush's
national energy plan. Witness: Energy Secretary Abraham. 2123
RHOB. 10 a.m. Contact: 202-225-2927.
Pharmaceutical Access
Health Subcommittee hearing on recent developments that may
impact consumer access to, and demand for, pharmaceuticals. 2322
RHOB. 10 a.m. Contact: 202-225-2927. (New.)

GOVERNMENT REFORM
Census Bureau
Census Subcommittee hearing on oversight of the Census Bureau's
proposed American community survey. 2203 RHOB. 2 p.m. Contact:
202-225-5074.

SCIENCE
 Science Legislation
 Full committee markup of H.R.100, National Science Education
Act; H.R.1858, the National Mathematics and Science Partnership
Act. 2318 RHOB. 10 a.m. Contact: 202-225-6371. (New.)

SMALL BUSINESS
Exporting
Full committee hearing on the Export-Import Bank of the United
States and its assistance to small business exporters. 2360 RHOB.
10 a.m. Contact: 202-225-5821

TRANSPORTATION AND INFRASTRUCTURE
Airport Construction
Aviation Subcommittee hearing on airport runway construction.
2167 RHOB. 9:30 a.m. Contact: 202-225-9446.

Capital Investments
Economic Development, Public Buildings and Emergency Management
Subcommittee hearing on General Services Administration FY02
capital investment program. 2253 RHOB. 2 p.m. Contact: 202-225-
9446.

VETERANS' AFFAIRS
GI Bill
Benefits Subcommittee markup of H.R.1291, the 21st Century
Montgomery GI Bill Enhancement Act, including education
provisions from the original H.R.801. 334 CHOB. 10 a.m. Contact:
202-225-9164. (New.)

WAYS AND MEANS
Energy Conservation/Supply
Select Revenue Measures Subcommittee hearing on the effect of
Federal tax laws on the production, supply and conservation of
energy. 1100 LHOB. 10 a.m. Contact: 202-225-3625.

THURSDAY
=SENATE COMMITTEES=

GOVERNMENTAL AFFAIRS
Cross Border Fraud, Part I
Permanent Investigations Subcommittee hearing to examine the
growing problem of cross-border fraud. 342 DSOB. 9:30 a.m.
Contact: 202-224-4751. (Revised.)

=HOUSE COMMITTEES=

ARMED SERVICES
Ballistic Missile
Military Research and Development Subcommittee hearing on
ballistic missile defense testing. Witnesses: Lt. Gen. Ronald
Kadish, USAF, director, Ballistic Missile Defense Organization,
Defense Department. 2118 RHOB. 10 a.m. Contact: 202-225-4151.

USS Cole
Special Oversight Panel on Terrorism hearing on the role of the
Defense Department in combating terrorism and force protection
lessons learned since the attack on the USS Cole.  2212 RHOB. 1
p.m. Contact: 202-225-4151.

Energy and Commerce
Emergency 911
Telecommunications and the Internet Subcommittee hearing to focus
on ensuring compatibility with enhanced 911 emergency calling
systems. 2322 RHOB. 10 a.m. Contact: 202-225-2927. (New.)

Financial Services
Wall St.
Capital Markets, Insurance and Government Sponsored Enterprises
Subcommittee hearing on analyzing the analysts. 2128 RHOB. 10
a.m. Contact: 202-225-7502. (New.)

GOVERNMENT REFORM
Gasoline Supply
Energy Policy, Natural Resources and Regulatory Affairs
Subcommittee hearing on "Gasoline Supply: Another Energy Crisis?"
2154 RHOB. 10 a.m. Contact: 202-225-5074.

House Administration
Campaign Finance Reform
Full committee hearing on constitutional perspectives on campaign
finance reform. 1310 LHOB. 11 a.m. Contact: 202-225-8281

RESOURCES
Magnuson-Stevens Oversight
Fisheries Conservation, Wildlife and Oceans Subcommittee
oversight hearing on "Ecosystem-based fishery management and the
reauthorization of the Magnuson-Stevens Fishery Conservation and
Management Act." 1324 LHOB. 9:30 a.m. Contact: 202-225-2761

SCIENCE
Energy Policy
Energy Subcommittee hearing on the president's national energy
policy. 2318 RHOB. 10 a.m. Contact: 202-225-6371

-=-=-=-=-=-=-=-
CongressDailyAM is published daily, Monday through Friday, by
National Journal Inc., when Congress is in session. Copyright
2001 by National Journal Inc., 1501 M St., NW, #300, Washington,
D.C. 20005. Retransmission, redistribution or reproduction of
CongressDaily is prohibited without the express, written
permission of National Journal Inc.

President--John Fox Sullivan, 202-739-8468 (jsullivan@njdc.com)
Publisher--Steve Hull, 202-739-8475 (shull@njdc.com)
Editor--Louis Peck, 202-739-8481 (lpeck@njdc.com)

Subscription price: $2,497 a year. Subscription and e-mail
transmission information: 202-266-7230 (cngdaily@njdc.com).
-=-=-=-=-=-=-=-

CDENDIT


request_number:  DS-PL:002
firstname:  Pamela
lastname:  Jacklin
e-mail:  pljacklin@stoel.com
exhibit_wp-02-e-:  JCG-01 and 02
page_numbers:
request_text:  Please disclose and/or produce any and all communications from
October 16, 2000 to the present, between the BPA representatives listed below
and any representative of any other party concerning BPA's rates to be in
effect for Fiscal Years 2002-2006, the interactions of such rates and
customer contracts, or procedural aspects of these rate proceedings.

 Bob Proctor
 Tim McCoy
 Byrne Lovell
 Byron Keep
 Valerie Lefler
 Jon Wright
 Peter Berger

For purposes of this Request, "disclose and/or produce" has the meanings
described below.  With respect to oral communications, "disclose and/or
produce" means to describe the time, date, approximate duration, and
substantive content of the communication; the identity and organizational
affiliation of the communicating individuals; whether the communication
occurred in person or by telephone; the location of the communication if in
person; the identity of any witnesses to the communications, including all
individuals in the room if the communication occurred by speakerphone; and
whether the communication was made in the presence of or after coordination
with BPA counsel (if so, identify such counsel).  For purposes of this
Request, you need not "disclose and/or produce" oral communications that
occurred during meetings noticed in compliance with Rate Case Rule 1010.7(d).

With respect to written communications, the Request includes communications
in any recorded form, whether on paper, electronic (including, without
limitation, e-mails), or whatever form.  For such communications, "disclose
and/or produce" means to provide copies of all non-identical versions of any
written communications and to describe with particularity the location where
such communications were found and/or stored, including the identity of the
individual with possession or control of the written communications; to
describe with particularity the circumstances under which they were generated
or referred to; and to fully "disclose and/or produce" any oral
communications made in connection with the written communications consistent
with the preceding paragraph.  For purposes of this Request, you need not
produce papers served on all parties to the rate case and made part of the
official file in the rate case.
response_text:  PacifiCorp objects to this Data Request on the grounds that
it (1) seeks information that is not relevant and (2) seeks information that
is unduly burdensome to produce.  (Rules of Procedure Governing Rate
Hearings, Section 1010.8(b).)  PacifiCorp further objects to this Data
Request on the grounds that it is in improper form, as it does not cite to
specific testimony or indicate the specific use to which to information
sought will be put.  (Special Rules of Practice, WP-02-O-01.)  Without
waiving the foregoing objections, we respond as follows in the below attached
exhibits:

For oral communications, see Exhibit 1.
For written communications, see Exhibit 2.

The exhibits and attachments are available in BPA's Data Response Room.

The following information is from the web server:
1.  Logon: IUSR_GRANITE
2.  Remote Host:  198.36.178.141
3.  Remote IP Address:  198.36.178.141
4.  Form URL:
https://secure.bpa.gov/power/secure/psp/ratecase/discovery/wp_02_response.html
5.  Browser Client:  Mozilla/4.0 (compatible; MSIE 5.01; Windows NT)


THE BLONDE KIDNAPPER

A blonde was down on her luck. In order to raise some money, she decided to
kidnap a kid and hold him for ransom. She went to the playground, grabbed a
kid, took him behind a tree, and told him, "I've kidnapped you." She then
wrote a note saying, "I've kidnapped your kid. Tomorrow morning, put $10,000
in a paper bag and put it under the pecan tree next to the slide on the north
side of the playground. Signed, a blonde." The blonde then pinned the note to
the kid's shirt and sent him home to show it to his parents.

The next morning the blonde checked, and sure enough, a paper bag was sitting
beneath the pecan tree. The blonde opened the bag and found the $10,000 with
a note that said, "How could you do this to a fellow blonde?"


This looks like IT stuff to me.

---------------------- Forwarded by Chris Germany/HOU/ECT on 01/22/2000 10:57
PM ---------------------------

Twyla_S_Strogen@CNGT.CNG.COM on 01/14/2000 01:07:30 PM
To: Customer_Advisory_Board@CNG.COM
cc:  (bcc: Chris Germany/HOU/ECT)
Subject: sneak preview

Preview of a soon - to - come EBB posting.......

---------------------- Forwarded by Twyla S. Strogen/Clarksburg/CT/CNG on
01/14/2000 02:06 PM ---------------------------

Twyla S. Strogen
01/14/2000 02:05 PM

To:   sam, Sherry S. Skinner/Cleveland/EG/CNG@CNGNOTES, Russell E.
      Kerns/Clarksburg/CT/CNG@CNGNOTES, Donald M.
      Filipich/Clarksburg/CT/CNG@CNGNOTES
cc:
Subject:  upgrade

NOTICE TO ALL SHIPPERS:

There will be a mandatory E-SCRIPT upgrade on Tuesday, February 8, 2000.

This upgrade will take approximately 45 min. to download via the Internet
using a 33.6 Kb modem connection (which is typical for dialup customers).
Please note that Altra customers will require additional time to upgrade.
If you prefer, you may call the E-SCRIPT Help Line at 1-800-895-8899 to
request
software for this upgrade. We will need you to leave your company
name, contact person, mailing address and whether you need a set of diskettes
or a CD.

The upgrade will include the following E-SCRIPT modification:

Users will be able to enter volumes in Nominations via the Daily Volumes Tab
for nominations in normal mode.  This will allow nominations for different
days
of the month on an activity, rather than 'retrieving' data for each day from
the
main tab.

As always, please call the E-SCRIPT Help Line with any problems, questions
or suggestions.

Thank you,

Twyla Strogen
Manager, Business Technology Services


Rick -

Dynegy filed at FERC to protest Com Ed's practice of letting Firm LD ("marketer or financial firm") power qualify as a network resource and therefore be used by marketers for retail contracts.   Dynegy says this deprives them of capacity payments that they are entitled to and threatens reliability because adequate reserve margin is not being carried to serve retail load.  Dynegy believes retail load must be satisfied using Physical Firm products where specific generation is tied to the retail contract.  New Energy and Cilco are the marketers directly implicated.

Enron, Cilco, New Energy, and the ICC have all intervened in support of Com Ed's practice.  Our complaint (Susan Lindberg was author) says financial firm is sufficiently, and perhaps even more, reliable than physical firm; and says Dynegy's proposal in effect would create an unneeded ICAP market.  The ICC goes on to say Dynegy's proposal would impair retail competition by discouraging entry into the retail market.

Here is the Enron filing -

The other case involving IP is the retail rate case where we have intervened to have IP's request for higher delivery rates dismissed.  Our argument is the legal one that their proposal favors bundled customers over unbundled customers.  It's the same argument we made in a similar Com Ed case.


Yesterday, PG&E sent out by email?the attached?advice letter  filed last
Wednesday, 2057-E, which proposes to?implement revisions to all  electric
rate schedules and preliminary statements to change the Company,s rates  and
to bill customers based on PG&E,s flawed contention that the AB 1890  rate
freeze has ended.? Based on accounting entries in its Transition Cost
Balancing Account (TCBA), PG&E says it completed recovery of its transition
costs sometime before August 31, 2000, thus ending the rate freeze.?
?
This advice letter and the accompanying?tariff changes?are said  to be filed
in compliance with D.00-06-034, D.00-03-058, and D.99-10-057 in the
Post-Transition Electric Ratemaking (PTER) proceeding (A. 99-01-016).?
However, I believe it conflicts directly with the end of the rate freeze
mechanism which was specified in that proceeding.?
?
The August date for ending the rate freeze is based on the valuation of  PG&E,
s retained hydro assets of $2.8 billion, as included in the Company,s
Generation Asset Balancing Account ("GABA") filing effective June 23, 2000
as  filed in Advice Letters 2048-E and 2049-E, dated October 26, 2000.?
Based  on current market conditions PG&E believes the actual value will be
determined to be higher than $2.8 billion.? If this is the case, the rate
freeze will have ended earlier and the tariffs contained herein will be
revised.? If the actual value of such generation is lawfully determined to
be lower, PG&E says it will not seek recovery of any resulting
undercollected CTC.
?
This should be protested as it is an obvious effort to get out from under
their current purchased power undercollections at the expense of their
ratepayers, by making a spurious claim that the rate freeze has ended.?
There is no date specified for comments, but assuming the usual 20 days,
that  means protests are due on December 12.
?
Dan
Date: Mon, 27 Nov 2000 15:01:56 -0500
From: "Avendano, Nel C" <NCO1@pge.com>
To: "Westby, Elizabeth" <ewestby@aandellp.com>, "Poynts, Roger"
<poynts@adi-tetrad.com>, "Harteloo, Kari" <klc@aelaw.com>, "Weil, James"
<jweil@aglet.org>, "Bond, Scott" <scott_r_bond@amoco.com>, "Kuhn, Peter"
<pkatkandk@aol.com>, "Ferrara, Merilyn" <Merilyn_Ferrara@APSES.COM>, "Celio,
Richard C." <rcelio@apt4power.com>, "Daniel Douglass"
<Douglass@ArterHadden.com>, "Nicholson, Robert"
<Robert.Nicholson@bankamerica.com>, "Lloyd, Connee" <clloyd@bart.gov>,
"Turlay, Randy" <ipt@best.com>,"Bolin, Lisa" <bfa@bfa.com>, "Miller, Jeff"
<jmiller@caiso.com>, "Chancellor, Craig" <craigc@calpine.com>, "Byron,
Jeffrey" <jbyron@calpine.com>, "Urick, Lisa" <lgurick@calpx.com>,
"Moritzburke, Peter" <pmoritzburke@cera.com>, "Ayers, Pat"
<peay@chevron.com>, "Hall, William R." <whall@ci.glendale.ca.us>,
"Whitehurst, Barbara" <bwhitehurst@ci.healdsburg.ca.us>, "Hurley, Lyle"
<lhurley@ci.redding.ca.us>, "Kjosnes, Ole" <ole.kjosnes@ci.seattle.wa.us>,
"Balachandran, Girish" <girish_balachandran@city.palo-alto.ca.us>, "Yates, E.
D." <ed@clfp.com>, "Bates, Brian E." <bbates@coral-energy.com>, "Lafrenz,
Don" <dlf@cpuc.ca.gov>, "Wheatland, Kent" <kbw@cpuc.ca.gov>, "McCartney,
Wade" <wsm@cpuc.ca.gov>, "McGuire, Patrick" <patrickm@crossborderenergy.com>,
"Henton, Ms Donna" <dhenton2@csc.com>, "Bloch, Lan" <enfile@csc.com>,
"Logsdon, Julie" <jlogsdon@csc.com>, "McKillip, Ron" <rmckilli@csc.com>,
"Schlotterbeck, Stacy B." <sschlott@csc.com>, "Taylor, Leslie"
<mgr-fr@cwscommunities.com>, "Ronning, Jill" <jronning@dgs.ca.gov>, "Teague,
Jonathan M." <jteague@dgs.ca.gov>, "Clark, Marshall" <mclark@dgs.ca.gov>,
"McCoy, Patrick" <rmccoy@dgs.ca.gov>, "Little, Naomi M."
<NMLittle@duanemorris.com>, "Lavigne, Steve" <sslavigne@duke-energy.com>,
"Ubavich, Nina" <Nubavi@dwp.ci.la.ca.us>, "Pau, Judy" <pauj@dwt.com>, "Paul,
Joseph M." <jmpa@dynegy.com>, "Yap, Catherine E." <ceyap@earthlink.net>,
"Gaillard, Bruno" <bgaillar@ees.enron.com>, "Hawes, Cathy"
<chawes@eesinc.com>, "McDonnell, Patrick" <pmcdonnell@eesinc.com>, "Wiley,
Mike" <mike@elite.net>, "Antonio, Sonny" <IUCGroup@email.com>, "Cresap, Jeff"
<jcresap_energysolutions@email.msn.com>, "Skaff, Andrew"
<askaff@energy-law-group.com>, "Fellman, Diane I."
<difellman@energy-law-group.com>, "Wood, W. William"
<bwood@energy.state.ca.us>, "Tachera, Jennifer"
<jtachera@energy.state.ca.us>, "Jaske, Mike" <mjaske@energy.state.gov.us>,
"Stanford, Charlene" <cstanfor@energy.twc.com>, "McElroy, Richard"
<richard.mcelroy@engageenergy.com>, "Jansen, Eric" <ERICJ@ESLAWFIRM.com>,
"Sanders, Mary" <msanders@exeterassociates.com>, "Seshan, Dr Anantha"
<aseshan@fifthgeneration.com>, "Greene, Phillip" <greenep@fosterfarms.com>,
"Eisenman, Eric" <eric.eisenman@gen.pge.com>, "Patrick, Heather"
<hpatrick@gmssr.com>, "Scheuerman, Paul" <pgs@ieee.org>, "Neidig, James E."
<jim.neidig@indsys.ge.com>, "Stancer, William H."
<william.stancer@ipaper.com>, "Baldwin, Mark" <igsinc@ix.netcom.com>,
"Blaising, Scott" <blaising@jps.net>, "Hamog, Donald"
<hamoyd@liggett-emh1.army.mil>, "Leslie, John W." <jleslie@luce.com>,
"Cabral, Theresa" <tcabral@mediaone.com>, "Pritchard, Jan W." <janp@mid.org>,
"Norris, Paul" <w6bd@msn.com>, "Meyer, Karl" <karl@ncpa.com>, "Call,
Harrison" <callco@netdex.com>, "Lin, Angie" <Alin@newenergy.com>, "Thomas,
Aaron" <Athomas@newenergy.com>, "Chen, Bill" <bchen@newenergy.com>, "Mollon,
Janie" <jsmollon@newwestenergy.com>, "Brady, Matthew V."
<bradylaw@pacbell.net>, "Selting, Anne" <anne@plurimi.com>, "Baird, Dewey J."
<bairdd@pom-emh1.army.mil>, "Bradley, Tod" <tod_bradley@powerspring.com>,
"Noger, Rick" <rick_noger@praxair.com>, "Skillman, June"
<jskillman@prodigy.net>, "Ungvari, Joseph" <jungvari@rcsis.com>, "Takahashi,
Tetsunari" <tetsunari@reconcorp.com>, "Baird, John" <John_Baird@rmiinc.com>,
"Elder, Katie" <katie_elder@rmiinc.com>, "Hong, Bevin"
<bhong@sanfrancisco.usgen.com>, "Muller, Phillip" <philm@SCDEnergy.com>,
"Gansecki, Karyn" <gansecka@sce.com>, "Lawler, Emely" <lawlerem@sce.com>,
"Porter, Douglas" <porterdk@sce.com>, "Purves, Ralph" <rpurves@sdge.com>
Cc: "Smith, Anita (RegRel)" <AWS4@pge.com>, "Storz, Paul"
<PSS1@pge.com>,"Malekos, Shelly" <SSM3@pge.com>, "Shaw, Susan" <SXS9@pge.com>
Subject: PG&E Advice Letter 2057-E
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_6239713B.C4A582E7"

Wednesday, November 22, 2000, Pacific Gas & Electric Company filed Advice
Letter 2057-E with the CPUC.

Submits Revised Electric Tariffs in Complaince With End of Electric Rate
Freeze (Assembly Bill (AB) 918)

If anyonw would like a copy of the tariffs, please contact Nel Avendano at
(415) 973-3529.

 <<2057-E AL.doc>>     <<2057-E-Att1.doc>>     <<2057-E-AttII.doc>>
<<2057-E-AttII-Tables.xls>>

Thank you.

Rose Abao
for Nel Avendano
Thank You,
Nel Avendano (nco1)
Rates (3-3529)

 - 2057-E AL.doc
 - 2057-E-Att1.doc
 - 2057-E-AttII.doc
 - 2057-E-AttII-Tables.xls


Perfectly. thanks

"Campbell, Carolyn" <CCampbell@KSLAW.com> on 05/01/2001 08:19:28 AM
To: "'kay.mann@enron.com'" <kay.mann@enron.com>
cc:

Subject: Salmon officers

Kay:

The March 8, 2001 written consent of Salmon electing officers provides that
Chris Calger is a Vice President.  Hope this answers the question.

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

                    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.


Leslie:  Looks good.  Just a couple of comments:

1. General
May want to point out that the roots of California's current gas woes are the
same ones causing the electric problem---combined effect of California's
"import-based" energy policy and the state's failure to invest in in-state
infrastructure.  California imports about 25% of its electricity, but about
80-90 percent of its gas supply.  California has failed to invest in the
in-state infrastructure necessary to support increased gas demand over the
last decade.  So we've got an interstate pipeline superhighway to the border
and a dirt road of in-state transportation once you get into California.
The last bullet seems to suggest that manipulation may be taking place.  Can
we support that suggestion, and is it one that we want to make necessarily?
If we do suggest that manipulation may in part explain current prices, do we
need to propose ways to eliminate it?  Otherwise, seems that we may be giving
FERC ammunition to take action without trying to "steer" that action in the
right direction.  Maybe I'm reading too much into the bullet.

2. Specific
Competition for gas coming to California has increased significantly.  The
midwest (via Alliance) is competing away Canadian gas.  The Southwest
(Nevada, Arizona) is competing away supply from the Southwest before it hits
the California border.

	Mary Hain@ECT
	12/12/2000 11:58 AM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: Draft Talking points about California Gas market

---------------------- Forwarded by Mary Hain/HOU/ECT on 12/12/2000 10:07 AM
---------------------------
To: Janet R Dietrich/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Mary
Hain/HOU/ECT@ECT, James D Steffes/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron, Maureen
McVicker/NA/Enron@Enron
cc:
Subject: Draft Talking points about California Gas market

We thought it would be good to basically give Chair Hoecker talking points
with any numbers that Enron provides.  We will visit on these later today
when the numbers are ready (before 3:00).  Comments?
---------------------- Forwarded by Christi L Nicolay/HOU/ECT on 12/12/2000
10:38 AM ---------------------------
From: Leslie Lawner@ENRON on 12/12/2000 11:56 AM
To: Christi L Nicolay/HOU/ECT@ECT, Joe Hartsoe/Corp/Enron@ENRON, Rebecca W
Cantrell/HOU/ECT@ECT, Ruth Concannon/HOU/ECT@ECT, Stephanie
Miller/Corp/Enron@ENRON, Phillip K Allen/HOU/ECT@ECT, Jane M
Tholt/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron
cc:

Subject: Talking points about California Gas market

Here is my stab at the talking points  to be sent in to FERC along with the
gas pricing info they requested for the California markets.  Let me or
Christi know if you have any disagreements, additions, whatever.  I am
supposed to be out of here at 2:15 today, so if you have stuff to add after
that, get it to Christi.  Thanks.


---------------------- Forwarded by David M Gagliardi/TTG/HouInd on
10/19/2000 10:26 AM ---------------------------

mggagliardi@duke-energy.com on 10/17/2000 07:18:07 AM

To:   Tony.A.Rogers@fritolay.com, David_Ricks@GSDM.com,
DGagliardi@reliantenergy.com
cc:

Subject:  True Orange Fax/E-Mail 98

---------------------- Forwarded by Michael
Gagliardi/Hou-ComOps/EnergyTrading/PEC on 10/17/2000 07:27 AM
---------------------------

TruOrange@aol.com on 10/16/2000 04:37:28 PM

To:   TruOrange@aol.com
cc:
Subject:  True Orange Fax/E-Mail 98

True Orange Fax/E-Mail Service
Volume 8, Fax/E-Mail #98, Monday, October 16, 2000
Jerry Scarbrough's True Orange, P. O. Box 26530, Austin, Texas 78755 -
Phone
512-795-8536

Missouri Game Set for 1:30, No TV; Baylor Game Gets TV at 11:30

After doing some on-air promos on the Texas-Missouri game, ABC opted
instead
to televise the Texas A&M-Iowa State game, so the Saturday game in Austin
between Texas and Missouri will start at 1:30 p.m. and will NOT  be
televised.
The Baylor game in Austin the following week will be televised by the Fox
Network and will begin at 11:30 a.m.
No pay per view will be available on Texas-Missouri because ABC's contract
with the Big 12 prohibits members of the Big 12 from televising a game in
the
same time frame with the ABC network game. Texas set the time at 1:30 p.m.,
which would conflict with the telecast of the A&M-Iowa State game.
The next road game is at Texas Tech on Nov. 4, and it should be televised,
but we won't know for sure until next Monday (the infamous 12-day window
the
networks require).
* * * *
Coach Mack Brown said Monday he thinks the Longhorns will fare better now
that the coaches have simplified the offense and settled on a starting
quarterback.
"When I was at North Carolina and used two quarterbacks, we had more
experienced people around them," he said. "I think we just need to simplify
as much as we can and just let them play."
He said that was the game plan at Colorado and he said that is the way the
coaches will prepare the team for the Missouri game.
Brown said he also thinks the two-back offense is better for Texas for
several reasons. He said having two backs behind the quarterback improves
the
pass protection. When teams rush eight defenders, he  said the five
linemen,
the tight end and one running back have one more rusher than there are
blockers. When two backs are there, he said there are enough people to
block
everyone, even in a maximum blitz. Oklahoma kept two backs in early against
Texas to protect Josh Heupel from the Texas rush. It obviously worked
pretty
well for the Sooners, and it worked for the Longhorns Saturday in Boulder.
It also is a better power-running formation because of the extra blocker,
he
said, adding that success in the running game causes the other team's
safeties to creep up to help stop the run. He said that causes "one-on-one
coverage on the wide receivers and also lets the tight end slip out
easier."
He said the Longhorns' running success at Colorado was a major reason for
all
the long completions to wide receivers and to TE Mike Jones having such
success.
"When you can run and pass, it creates some problems for the defense," he
said. "We plan to keep working on being able to do both."
True freshman WR B. J. Johnson went along with the simplification idea,
while
having some fun with the rerporters on hand. Johnson said when he first got
to Texas and "heard the coaches talking about cover 6 . . . I didn't even
know they had six coverages.
When someone asked him if he knew all the defensive coverages now, he said,
"I don't even know all the plays, to tell you to truth. You should see our
playbook."
He was asked if life was simpler back when he first starting playing
football. "In pee-wee ball, we might have had 10 plays, and they all
worked,"
he said. Everybody, including B. J., laughed.
* * * *
BASKETBALL RECRUITING: T. J. Ford, the 5-11, 160-pound point guard at
defending state 5A champion Fort Bend Willowridge, has made his college
choice, but he won't reveal it until a  5:45 p.m. Wednesday press
conference
at Harlem Elementary School in Baytown. The Longhorns have a great shot,
but
he also has taken visits to Louisville, Memphis State and Houston and could
wind up picking one of them. The Longhorns have only two scholarships to
award this year and Chris Wright, a  6-10 center at Redwater, committed
last
year. So, if Ford comes aboard, the Longhorns would sign Wright and Ford on
November  8, the first day of the early signing period, and that would wrap
up their class.
* * * *
My next e-mail/fax will be whenever events warrant and no later than
Wednesday, October 18.
* * * *
The True Orange Fax Service includes  at  least  99 faxes  a year and costs
$99 ($79 by E-Mail). The True Orange Newsletter includes  26 newsletters
and
is published weekly during football season and twice monthly during most of
the other months. It costs $45. Save by subscribing to both for $130 (or
$110
if you take the faxes via E-Mail  or $99 if you take the faxes and
newsletter
via E-Mail). Send check  to address at the top of page. I also  update my
900 number ? 1-900-288-8839 ? frequently with recruiting news. My E-Mail
address is: truorange@aol.com


I have not circulated a copy of the LV Cogen/ABB Agreement since January
8, 2001.  I have not seen a 3/27/01 version.  I had previously sent an
e-mail to Dale indicating that the contractor's  comments to the ABB
Agreement were not made to the Exhibit B-1 of the LV Cogen/ABB Agreement
that I have. What I currently have as Exhibit B-1 is what Dale had sent
to me on January 5, 2001 as incorporating Don Hammond's comments. The
current contractor comments contain many discrepancies (in addition to
those that are shown as a redline).  Please let me know if I should
only incorporate the contractor's redlined changes, or should I conform
Exhibit B-1 to mirror what is in the contractor's comments? Perhaps if I
could go through the contractor's comments with one of you, we could
resolve what should and should not be in Exhibit B-1 of the agreement.

-----Original Message-----
From: Don.Hammond@enron.com [mailto:Don.Hammond@enron.com]
Sent: Thursday, April 26, 2001 1:30 PM
To: Bill.Williams@enron.com
Cc: THOMAS CONSTANTINE; Thompson, Peter J.
Subject: Re: LV Cogen ABB Agreement

Exhibit A of the ABB breakout agreement does not need to be revised to
show
losses. Losses are specified in Exhibit B-1, Section 10.0. These are the
latest revised loss values as provided by ABB.

I have a draft of that agreement dated 3/27/01. That draft contains the
revisions proposed by MCS. As I indicated to you earlier, I don't have
issue with those changes. My only other comment in looking through the
agreement one more time is that the final two pages in Exhibit B-1 (in
my
copy pages 44 and 45) are performance specification sheets from ABB for
an
earlier design. The ratings, loss values, and dimensions on these sheets
are not current. I suggest these pages be removed.

To:   Don Hammond/PDX/ECT@ECT
cc:   "THOMAS CONSTANTINE" <TCONSTAN@LLGM.COM>
Subject:  LV Cogen ABB Agreement

This also is an issue I need your help on.  Please review and respond to
Peter, copy Tom Constantine. (or copy me and I will forward to Tom.)
---------------------- Forwarded by Bill Williams/PDX/ECT on 04/25/2001
08:23 AM ---------------------------

(Embedded     Enron Capital & Trade Resources Corp.
image moved
to file:      From:  "Thompson, Peter J."
pic28301.pcx) <pthompson@akllp.com>
04/25/2001 06:24 AM

To:   "Kay Mann (E-mail)" <kay.mann@enron.com>, "Dale Rasmussen
(E-mail)"
<Dale.Rasmussen@enron.com>, "Bill Williams (E-mail)"
<Bill.Williams@enron.com>
cc:
Subject:  LV Cogen ABB Agreement

As I indicated in my January 8, 2001 e-mail containing the first
draft of the LV Cogen/ABB Transformer Agreement, to complete the
agreement we will need to amend Exhibit A to show the electrical losses
guarantee as well as the base load for the units.  In prior deals we had
one of the technical folks look at this.  In addition, please let me
know which of the contractor's  changes, if any, I should make to the
agreement. As I had mentioned in my earlier e-mail, it appears that the
contractor's comments were made on an Exhibit B-1 other than the Exhibit
B-1 attached to the LV Cogen Agreement as many of the numbers do not
match up.


Girl, I'm on my way to the airport in about 15 minutes!  I'll leave the phone
on!


Hi Mark,

Thanks for your response.  Sorry, I didn't provide you my number here in
Tokyo.  For future reference, my office number is 81-3 5219-4578.  I'll try
to give you a ring Wednesday morning (Houston time) to discuss the going
forward strategy.

 Attached hereto, are the draft documents, modified in accordance with your
comments/questions and my responsive comments (which are set forth below in
red).

Look forward to seeing you soon.

Hi Susan-

Please review the attached documents from the tax perspective.  Thanks.

Best regards,

John

	Mark Taylor@ECT
	08/22/2000 06:59 PM

		 To: John Viverito/Corp/Enron@Enron
		 cc:
		 Subject: Japanese ISDA Documents

Dear John:

So sorry for the delay.  I hope it hasn't caused too much inconvenience. No
problem!  I would have called to apologize in person but believe it or not I
don't have your phone number!   Here are my comments to the draft documents
you sent:

Part 1 (b)  In our other derivatives trading, the cross default test applies
to Enron Corp. with a Threshold of US$100,000,000.  To accomplish this in the
schedule, Threshold Amount for the Enron party would apply to our Credit
Support Provider if there is going to be an Enron Corp. guaranty and the
dollar figure adjusted accordingly.  The Schedule has been revised.  Please
advise if the equivalent change should be made to paragraph (b)(iv)(B) of
paragraph 13 of the CSA.

Part 1 (d)  Has Baker & McKenzie recommended this?  We rely on local counsel
advice for this provision but our preference is that the termination in a
bankruptcy context not be automatic unless it needs to be.  The risk in the
automatic situation is that the market moves significantly before we are even
aware of the situation, i.e. the outstanding transactions terminate
automatically, leaving us with an open, unhedged position which we are not
able to protect since we are not aware of it.  In the U.S. the bankruptcy
code allows us to terminate after the filing of a bankruptcy according to the
terms of the agreement so we know exactly the time to rehedge.   According to
B&M, the ability to set-off against Japanese counterparties is limited by
certain laws relating to insolvency including the Bankruptcy Law.  These laws
give a trustee the right to cherry pick contracts.  Accordingly, it is the
general practice in Japan for parties to elect automatic early termination to
ensure that close out netting takes place before the trustee's right to
cherry pick comes into effect.  In December 1998, a netting law came into
effect in Japan which specifically permits close out netting (notwithstanding
the trustee's right to cherry pick).  The netting law only applies where one
of the parties to the transaction is a financial institution (Mitsui Marine
and Fire, Sanwa and IBJ, would all qualify).  From a legal perspective, it is
now arguable that automatic early termination should not be adopted (for the
same reasons as are described in you message).  However, as a matter of
Japanese market practice, B&M has advised that most schedules with Japanese
counterparties still specify automatic early termination.  Accordingly, the
automatic early termination provision in place.  Please confirm that this is
acceptable.  Please also note, that the automatic early termination provision
will be necessary when Enron Japan deals with Japanese corporations that are
not financial institutions.

Part 1 (e)  We usually choose Loss here as the method which gives the
non-defaulting party the most flexibility.  Market Quotation is often
suggested because of its apparent objective nature.  However, in many of the
markets where we operate, quotations will not be available, where they are
available they may well not be meaningful, and the Loss method gives
flexibility (while still requiring commercial reasonableness).  The Schedule
has been revised.

Part 1 (h)(ix)  This Additional Event of Default only applies when there is
no collateral annex.   When we have the ability to ask for (or be asked for)
collateral in the case of a downgrading, we build that event into the
Paragraph 13 to trigger a reduction of the threshold to zero which requires
the posting of collateral to cover any open position.  If the party fails, it
then becomes a default allowing termination.  The Schedule has been revised.

Part 1 (h)(x)  Wouldn't the cross default be triggered before this could
happen?  B&M has advised that although the cross default provisions may well
be triggered before this clause applies, the clause is standard in Japan and
is not detrimental to Enron, therefore the clause has been left in place.

Part 2  Have our internal Tax people approved this?  I have copied Susan
Musch on this e-mail, so that she may review the documents for tax purposes.

Part 3  I am not familiar with the Representative Director concept or some of
the corporate documents referred to.  Since Enron Corp. will be a Credit
Support Provider, does it have a Representative Director, etc.?  The clause
has been modified to allow different documents to be specified in connection
with the Enron Corp. guarantee.  Please fill in the blanks to specify the
appropriate documents.  Sorry for the oversight.

The legal opinion requirement is one that we can waive if local counsel does
not think it necessary.  In many non-US jurisdictions, local counsel have
advised that an opinion be obtained - in some cases derivatives transactions
are so uncommon that they might be outside the ordinary course of business
and therefore require special board approval; in others, derivatives would
not be permissible activities for a company unless express provision is made
in the corporate documents, etc.  B&M has stated that in practice they have
never been given or asked to review a Japanese law opinion in relation to a
specific ISDA schedule entered into by a Japanese counterparty and would
expect Japanese counterparties to be reluctant to provide such opinions.

Part 5 (b) (g)&(h) These representations originate with CFTC rules in mind
(although they may be helpful for other reasons as well).  If neither party
is in the US, the CFTC reason may go away.  On the other hand, since we are
choosing New York law to apply the argument might be made that US federal law
applies as well.  If that is our theory, there are additional representations
(the Eligible Swap Participant reps) that we should think about putting back
in.   These representations were tailored with the Japanese prohibition on
gambling in mind. I was not able to find the "eligible swap participant"
representation in the Enron US ISDA Form (although there is a reference to
this in the opinion).  Please inform me as to the wording that needs to be
added for New York purposes.

Part 5 (d)  We are currently evaluating whether we should revise this section
to make reference to the ISDA 2000 definitions.  While I think we will get
there, we haven't actually made the decision yet.  So far I guess we leave it
the way it is.  OK

Part 5 (j)  My only concern here is with the value of the Enron Corp.
guaranty as a form for a guaranty from a Japanese entity.  Any differences in
Japan from US practice we should be worried about?  For the swap
counterparties currently being considered by Enron (Mitsui Marine, IBJ and
Sanwa) no guarantees are being required.  B&M has advised, the form of the
Enron Corp. guarantee would generally be acceptable for guaranteeing the
obligations of Japanese counterparties.  However, there are a number of
changes that may be considered including switching the governing law and
jurisdiction provisions to Japan for ease of enforcement against parties
whose principal assets are located in Japan.  It is recommended that the
guarantee be reviewed in further detail before it is actually proposed to
counterparties.

Paragraph 13  I have to admit I'm not as familiar with the Paragraph 13
provisions as the Schedule.  My only concern here is with the MAC clause and
it looks like there's a glitch in the form.  It seems to me that if the
counterparty is only rated by one of the 2 major agencies we shouldn't be
pegged with a MAC if only one of our agencies stops rating us.  The way it is
drafted now if either S&P or Moody's stops rating us, even if the remaining
rating is very high we will have a MAC occur.  The counterparty doesn't have
to worry about Moody's at all.  Just a thought.  The suggested change has
been made.  Additionally, the provision has been modified to provide that a
MAC will occur with respect to Enron, only if both rating agencies downgrade
Enron Corp.  Please confirm this is OK.

On the guaranty, you will need to run the choice of law and jurisdiction
changes past Clement Abrams at Corp. Legal.  My only comment is that we would
usually have a cap that is a bit higher (in this case maybe an extra
$5,000,000) than the threshold in the CSA - that gives the counterparty a
little wiggle room if we fail to post collateral after the threshold is
exceeded.  I will separately forward the guaranty to Clement Abrams for his
approval. The cap has been increased to US$20,000,000.

Tana is preparing a red-line for me that hopefully will show all of the
changes between the US form and the Japan form.  I may have a few more
comments after I see how that comes out but don't expect many.  I apologize
that the red-line was not fully made against the US form.

I hope this is helpful.  Mark-  This has been very helpful! Please feel free
to call and we can walk through these over the phone if that would be
useful.  We should also talk about the most efficient way to prepare these
going forward.  It might make sense for Credit to send their worksheets to
the paralegals here for a first draft which would then go to you for review
before going to the counterparty.  It may slow things down by a day or two
but it would free you up to work on other things.  All excellent ideas.

We're looking forward to having you back.  Looking forward to seeing you
soon.  Thanks again.


Let me know as soon as possible when you can do Sherry's review and the
others as well, so I can get with Liz to schedule something that works for
everyone.  They want the regular ones to be done by the end of next week, and
Sherry's has to be done by Jan 19, 2001.

Thanks -- I know it's a pain,

Errol


can you fill this out for me?
----- Forwarded by Steven J Kean/NA/Enron on 03/02/2001 12:31 PM -----

	Tara Rafter
	03/02/2001 10:58 AM

		 To: Joe Allen/NA/Enron@Enron, Scott Bolton/Enron Communications@Enron
Communications, Stacey Bolton/NA/Enron@Enron, Roy Boston/HOU/EES@EES, Hap
Boyd/EWC/Enron@Enron, Jeff Brown/NA/Enron@Enron, Margaret
Carson/Corp/Enron@ENRON, Wiley Cauthen/GCO/Enron@ENRON, Carolyn
Cooney/Corp/Enron@ENRON, Shelley Corman/Enron@EnronXGate, Jeff
Dasovich/NA/Enron@Enron, Tom Delaney/Corp/Enron@ENRON, Linda
Fitzgerrell/GCO/Enron@ENRON, Howard Fromer/NA/Enron@Enron, Janel
Guerrero/Corp/Enron@Enron, Mary Hain/HOU/ECT@ECT, John
Hardy/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe Hartsoe/Corp/Enron@ENRON,
Nancy Hetrick/NA/Enron@Enron, Jean Ryall/NA/Enron@ENRON, Robert
Hemstock/CAL/ECT@ECT, Alberto Levy/SA/Enron@Enron, Ron
McNamara/NA/Enron@Enron, Mike Roan/ENRON@enronXgate, Thane
Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steve Walton/HOU/ECT@ECT, Ricardo
Charvel/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Stella
Chan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Vinio Floris/Corp/Enron@Enron, Xi
Xi/Enron Communications@Enron Communications, Tracy Cooper/Enron
Communications@Enron Communications, Dan Staines/HOU/ECT@ECT, Kathleen
Sullivan/NA/Enron@ENRON, Kerry Stroup/NA/Enron@Enron, Alan
Comnes/PDX/ECT@ECT, Marcie Milner/Corp/Enron@ENRON, Donna
Fulton/Corp/Enron@ENRON, Allison Navin/Corp/Enron@ENRON, Lora
Sullivan/Corp/Enron@ENRON, Stephen D Burns/Corp/Enron@ENRON, Tom
Briggs/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Robert
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gloria
Ogenyi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Patrick Keene/NA/Enron@Enron,
Robert Frank/NA/Enron@Enron, Joe Hillings/Corp/Enron@ENRON, Barbara A
Hueter/NA/Enron@Enron, Richard Ingersoll/HOU/ECT@ECT, Paul
Kaufman/PDX/ECT@ECT, Steven J Kean/NA/Enron@Enron, Jeffrey
Keeler/Corp/Enron@ENRON, Robin Kittel/NA/Enron@Enron, Susan M
Landwehr/NA/Enron@Enron, Donald Lassere/NA/Enron@Enron, Rochelle
Lessner/ENRON@enronxgate, Chris Long/Corp/Enron@ENRON, Dave
Mangskau/Corp/Enron@ENRON, Kathleen E Magruder/HOU/EES@EES, Susan J
Mara/NA/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, Becky L
Merola/TNPC/EES@EES, FRED MILLER/ENRON@enronxgate, Mary Kay
Miller/ET&S/Enron@ENRON, Steve Montovano/NA/Enron@Enron, Bill
Moore/NA/Enron@Enron, Sue Nord/NA/Enron@Enron, Christi L Nicolay/HOU/ECT@ECT,
Lou L Pai/HOU/EES@EES, Sarah Novosel/Corp/Enron@ENRON, Christie
Patrick/HOU/ECT@ECT, Mona L Petrochko/NA/Enron@Enron, Scott
Reblitz/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marchris
Robinson/NA/Enron@Enron, Thomas S Reichelderfer/DUB/EES@EES, Fred
Rimington/NPNG/Enron@ENRON, Frank Rishe/NA/Enron@Enron, Cynthia
Sandherr/Corp/Enron@ENRON, Gavin Russo/Corp/Enron@ENRON, Dave
Schafer/NA/Enron@ENRON, Richard Scarborough/Corp/Enron@Enron, Jeff
Skilling/Corp/Enron@ENRON, Lon Stanton/ET&S/Enron@ENRON, James D
Steffes/NA/Enron@Enron, Terence H Thorn/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Kathleen Wagner/NA/Enron@Enron, Susan
Worthen/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Charles Yeung/HOU/ECT@ECT, Lisa
Yoho/NA/Enron@Enron
		 cc:
		 Subject: Lobbying Questionnaire Clarification

It has come to my attention that there has been some confusion regarding the
Lobbying Questionnaire that I sent out on Feb. 20, 2001 and which is due on
March 9, 2001.  Please note that it is NOT necessary to gather your expenses
attributable to your lobbying activities rather I just need an allocation of
your time/hours spent engaging in such activity during the year 2000.  I
apologize for any confusion.  Thank you - Tara Rafter


Hi, Gennaro!

I'm trying to pull all these documents together so that we can have them re-executed and I noticed that the Euroclear single Pledgor Pledge Agreement attached is not the same version we signed.  The version we signed in RG500b(Pledgee's Representative version - 1998 Edition).  Do you have this version that you can send to me?

Thanks!

Marie Heard
Senior Legal Specialist
Enron North America Corp.
Phone:  (713) 853-3907
Fax:  (713) 646-3490
marie.heard@enron.com

 -----Original Message-----
From: 	Rozycki, Joanne
Sent:	Monday, July 23, 2001 9:01 AM
To:	Heard, Marie
Subject:	Is this something you need to handle?

 -----Original Message-----
From: 	Gennaro.Contella@chase.com@ENRON [mailto:IMCEANOTES-Gennaro+2EContella+40chase+2Ecom+40ENRON@ENRON.com]
Sent:	Friday, July 20, 2001 2:26 PM
To:	Shackleton, Sara
Subject:	Enron Contracts

(See attached file: Euroclear Single Pledgor Pledged Acct Agrmnt.pdf)(See
attached file: Euroclear Collateral Addendum to GCCA rev. Sep 7, 2000.doc)
(See attached file: Chase NY Law Clearance Agrmnt  June 12, 2001.doc)(See
attached file: GTA_LEG AGREEMENT.doc)
 - Euroclear Single Pledgor Pledged Acct Agrmnt.pdf
 - Euroclear Collateral Addendum to GCCA rev. Sep 7, 2000.doc
 - Chase NY Law Clearance Agrmnt  June 12, 2001.doc
 - GTA_LEG AGREEMENT.doc


---------------------- Forwarded by Kay Mann/Corp/Enron on 12/13/2000 08:48
AM ---------------------------

"Keffer, John" <JKeffer@KSLAW.com> on 12/12/2000 04:15:31 PM
To: "'Kay.Mann@enron.com'" <Kay.Mann@enron.com>
cc:

Subject: RE: Hola

thanks-Carlos talked to me yesterday and is excited at the prospect of the
Mexican work.

Rose hasn't called me yet-thanks for the intro.

More tickets are available-as many as you want (I think you're the only real
fan in the group).  Hadn't heard the Biggio story-I'll check into it and
pass any gossip.  I think Asmus will be a good addition, but we still need a
good starter.

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Tuesday, December 12, 2000 4:03 PM
To: Keffer, John
Subject: Re: Hola

We are getting the Enron treatment from Coral.  I hope Carolyn told you I
called yesterday - Coral was looking for Shell approval.  I'm guessing it
is in a coma.  I usually have 30 voice mails, and I have had 4 today, which
tells you something.  Good  time for Michael to be sick!

Carlos has interviews today and tomorrow with ENA.  I think he is looking
good for Mexico.  You guys are the absolutely best qualified for that
business, and I'll start planting that seed when I can.

By the way, thanks for the great job on Coral.  Did you hear from Rose on
the HSR on TurboPark?

We do want Astros tickets for next year - at least 15 games.  Are more
available?

I heard that Hampton had an issue with Patty Biggio (thank goodness, these
salaries are absurd), and I guess I'm glad to see Ausmus come back.
However, he is not a substitute for a pitcher.  And how is Shane?

Ciao,

Kay

"Keffer, John" <JKeffer@KSLAW.com> on 12/12/2000 03:50:53 PM

To:   "Mann, C. Kay" <Kay.Mann@enron.com>
cc:

Subject:  Hola

Que paso con Coral?

Heard from your assistant that your son is sick-hope all is well.

                    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.

                    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.


FYI - here's the info I just received from the "ECT trader" in Buenos
Aires!!!!!!!!
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 07/22/99 03:46
PM ---------------------------
From: "Julian Poole/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL on
07/22/99 03:16 PM
To: Sara Shackleton@ECT
cc: Federico Cerisoli AT ENRON_DEVELOPMENT@CCMAIL, Brent Hendry AT
ENRON_DEVELOPMENT@CCMAIL
Subject: Spot Prices

Sara,

I think we must mention the following as the source of the index price for
energy: "Documento de Transacciones Economicas" (DTE). This is an electronic
document published by Cammesa, and is available to all participants of the
Wholesale Electric Market in Argentina. It's a summary of all the economic
transactions between the participants of the Wholesale Electric Market
(Generators, Transmission Co, Distributors, Marketers and End Users).

This DTE is published around the 5th or 6th day of each month and reports all
transactions for the previous month. It is accessed by calling into Cammesa's
server and replicating the corresponding database.

The attached word file shows you different screens of this electronic
document. The second zipped file is the DTE for June.

(See attached file: IndexView.doc)(See attached file: dte9906.zip)

Have a look at it and give me a call if you have any questions.

Regards, Julian
 - IndexView.doc - dte9906.zip


BUSINESS HIGHLIGHTS

Enron Industrial Markets
Metal Bulletin - Iron and Steel Awards for 2000
Pushiest Entrant: Enron, the US commodity trading company, which promised it would revolutionize the steel business by offering futures in hot rolled coil via its online market place.

The EIM Fundamentals Analysis group is excited to announce that Dave Allan has joined as a Director, responsible for all Forest Products lines.  He comes to EIM with 20 years of experience in the Forest Products industry, of which 14 were spent at Abitibi and 6 with Pulp and Paper Week.  Please join us in welcoming Dave.

The Siebel Team ("The Force") continues to work towards program implementation of its customer management system in early May, with training to begin at the end of April.  Stay tuned for updates.

Enron Global LNG
Enron Global LNG is positioning itself to be a creator and leader of a global wholesale LNG market.  The rising prices of natural gas in the United States and concerns over future energy supplies have created a bullish outlook for LNG in the U.S. and around the globe.   LNG has played a major role in serving energy needs in many parts of the world, but its place in the U.S. energy picture has been limited. An LNG market that spans the globe can supply vast amounts of otherwise stranded gas to the world's growing appetite for cleaner burning fuels.   Enron Global LNG sees great opportunity for Enron's wholesale energy business model to help shape yet another energy market.

IN THE NEWS

Enron Corp. Says First-Quarter Profit Rose 20 Percent
Houston, April 17 (Bloomberg) -- Enron Corp., the largest energy trader, said first-quarter profit rose 20 percent as sales almost quadrupled. Profit from operations rose to $406 million, or 47 cents, from $338 million, or 40 cents, in the year-earlier period.  Enron raised its 2001 profit forecast to $1.75 to $1.80 a share, from its January projection of $1.70 to $1.75.

First-quarter revenue surged to $50.1 billion from $13.1 billion as Enron boosted the volume of power sold in North America by 90 percent. Enron had a first-quarter gain of $19 million, or 2 cents a share, for an accounting change, making net income $425 million, or 49 cents a share. There were no charges or gains in the year-earlier period.

WELCOME
New Hires
EGM - Janelle Russell,
EIM   - David Allan, Sylvia Carter
ENA  - Sasha Divelbiss, Amy Quirsfeld, Judy Zhang, Annette Thompson, Kelly Donlevy-Lee, Grant Patterson

Transfers (to or within)
ENA - William Abler, Magdalena Cruz, Barbara Taylor, James Reyes, Marvin Carter, Angel Tamariz, Jesse Bryson
EIM - Cassandra Dutton, Christine Sullivan, Camille Gerard, Sherri Kathol, Jennifer Watson
EGM - Steven Batchelder

LEGAL STUFF
The information contained in this newsletter is confidential and proprietary to Enron Corp. and its subsidiaries.  It is intended for internal use only and should not be disclosed.