FYI.  Here are the pieces.
---------------------- Forwarded by Paul Kaufman/PDX/ECT on 03/23/2001 11:15
AM ---------------------------

Paul Kaufman
03/19/2001 04:24 PM
To: Elizabeth Linnell/NA/Enron@Enron
cc:
Subject: Briefing Book

FYI.  Sorry, but I forgot to forward this to you last week.
---------------------- Forwarded by Paul Kaufman/PDX/ECT on 03/19/2001 04:29
PM ---------------------------

Paul Kaufman
03/14/2001 10:39 AM
To: James D Steffes/NA/Enron@Enron, Janel Guerrero/Corp/Enron@Enron, Alan
Comnes/PDX/ECT@ECT, Sandra McCubbin/NA/Enron@Enron, Susan J
Mara/NA/Enron@ENRON, Jeff Dasovich
cc:
Subject: Briefing Book

I suggest the following contents for the legislative briefing book we
discussed during our 11:30 call yesterday.  My goal was to be comprehensive,
even if it sacrifices brevity.  My goal was also to put something together
that we could use for more than just California.

Overview of how we ended up in this crisis--include EPSA paper on crisis, EEI
paper on crisis, and 1-2 articles from CA papers on the crisis.
Load growth--California (show in terms of MWs, not percentages) and in WSCC.
Point is to show how load growth in California has been extraordinary
relative to historical growth, show how entire west is growing.
Generation additions--show how California and west did not keep pace with
load growth.
Consumption per capita or other measurements.
Rate comparisons--show how west has had experienced substantial rate
increases.  Compare actual increase in California to other states.
MRW Study--show how $1 billion can be produced by 10% increase.  Show how
increases experienced in--e.g., Nevada can produce revenues.
Transmission takeover analysis--show $39 billion price tag, compare with
school funding.
Solutions--include the Brulte or Herzberg piece.

I would add the following pieces as well (just not sure where):

Discussion of federal jurisdiction over transmission and
generation--summarize FERC orders, including investigation.
Why price caps aren't a solution.

I started to look at our website yesterday and was unable to find a number of
data points that I think we need to include in the b


Are we still friends??

 -----Original Message-----
From: 	Kaufman, Paul
Sent:	Monday, October 29, 2001 11:44 AM
To:	Steffes, James D.
Subject:	RE: PGE Imbalance Charge

Thanks.  I hate it when I sound petulant.

 -----Original Message-----
From: 	Steffes, James D.
Sent:	Monday, October 29, 2001 9:12 AM
To:	Kaufman, Paul; Nicolay, Christi L.
Subject:	RE: PGE Imbalance Charge

My fault for not making it clear that you should have been in the loop.  We will send out a message across the board to help with this.

Jim

 -----Original Message-----
From: 	Kaufman, Paul
Sent:	Monday, October 29, 2001 11:08 AM
To:	Nicolay, Christi L.; Steffes, James D.
Subject:	RE: PGE Imbalance Charge

This is going to sound like empire building. But I need to know what we're doing with PGE.  I don't need to participate in the calls--but I do need to know.  The PGE folks need to have confidence that I'm aware of our positions and plans.

 -----Original Message-----
From: 	Nicolay, Christi L.
Sent:	Monday, October 29, 2001 9:04 AM
To:	Steffes, James D.
Cc:	Kaufman, Paul
Subject:	RE: PGE Imbalance Charge

We are having a conference call tomorrow with PGE.  They did not decide anything on the last conference call after I told them why Enron retail in the East likes the Duquense type imbalance (no bandwidth, thus no penalties-- imbalances settle at verifiable system lambda).  John Malowney of EPMI west desk likes the bandwidth, but we are discussing it further since it has created problems for the East EES desk (due to the penalties associated with being outside the bandwidth).  John likes the PGE proposal to settle at an index price, but PGE is reconsidering that aspect.

Unfortunately, I don't know of any TPs that allow a bandwidth without penalties.

Let me know if you want to participate in the call.

 -----Original Message-----
From: 	Steffes, James D.
Sent:	Monday, October 29, 2001 10:50 AM
To:	Nicolay, Christi L.
Cc:	Kaufman, Paul
Subject:	PGE Imbalance Charge

Christi --

What's the latest on the PGE imbalance method??

Jim


It was good to see you last week, too.  That was a big group, and there were
many people that I just passed in the halls!  I would love to participate,
but I will be out of town on September 14.  Rick Causey is hosting an offsite
meeting from Septemer 13-15 in San Antonio.  Thanks for thinking of me.
--Sally

Jo Ann Hill@ENRON
09/06/2000 10:50 PM
To: Sally Beck/HOU/ECT@ECT
cc: Andrea Yowman/Corp/Enron@ENRON
Subject: SAP Initiative

Sally - it was great seeing you last week at the ASE in Dallas.  I'm sorry we
didn't have the opportunity to work together in any of the groups.  As you
may know,  I have just completed the SAP HR Implementation Project and my
current role, working for Andrea Yowman, is to maximize our investment in SAP
HR.

To that end, next Thursday, 9/14, two people from SAP will be here to
interview non-HR managers on a new project as described below.  You have been
identified as an excellent resource to participate in this effort, and I
would appreciate it if you would be able to spend 1/2 hour with this team and
have your admin spend another hour with them as well -- times noted below.

Please let me know if you are available and willing to participate in this
initiative.  It is the beginning of our ongoing relationship with SAP to
develop what Enron needs, and your input is considered invaluable to this
process.  Please respond with your availability at the times noted below and
I will prepare a final agenda and itinerary early next week.

Thanks for your consideration to participate in this effort.  If you have any
questions or need further information, please do not hesitate to call me at
3-0363.
Thanks.
Jo Ann

Proposed agenda
We would like to interview managers and their administrators.

 9:30 - 10:00 SAP Team interviews/observes manager#1
10:00 - 11:00 SAP Team interviews/observes admin assistant of manager#1

 1:00 -  1:30 SAP Team interviews/observes manager#2
 1:30 -  2:30 SAP Team interviews/observes admin assistant of manager#2

 2:30 -  3:00 SAP Team interviews/observes manager#3
 3:00 -  4:00 SAP Team interviews/observes admin assistant of manager#3

What is this project?
SAP is developing new software for managers that will be integrated with the
Workplace. It will be flexible and powerful enough to support managers at
all levels and in all industries. This project is supported directly by the
HR Desktop Manager group and has been endorsed by top managers throughout
SAP in the U.S. and Germany.

SAP has learned that to produce great software products we have to get close
to our end users. To do that, we need your help. Our goal is to visit eight
SAP customers in the U.S. Enron is one of the eight companies we would like
to visit.

Who do we want to interview and observe?
In a one-day visit, we want to observe and interview three types of
managers.
* High-level manager, involved in strategic planning, overall budget
responsibilities, strategic direction. The high-level manager tends to
delegate most of his daily and weekly activities to subordinates.
* Operational manager, involved in running a large department or small
subsidiary. Often reports to the high-level manager. Has budget and
personnel responsibility for the department or subsidiary. May also have
product-planning responsibilities.
* Group manager, primarily focused on a business activity such as
accounts payable manager, line manager, or production planner; but also
involved in managing a small group. Often has hands-on personnel and
lower-level budget responsibilities. Concerned with the day-to-day business.

What can you expect during a site visit?
We have found that the most efficient way to organize our interviews is to
meet with a contact person in your company (that would be me) who will then
escort us to our
interviews. This allows our team to introduce themselves and explain their
objectives.  Our interviews are conducted at the managers' workstations
where our team will spend about 1/2 hour observing the manager in his/her
daily work and asking questions.  We will then spend the next hour with
his/her
administrative assistant.

Interviewees do not have to prepare anything. We prefer to interview people
where they work because often the work environment can give us a lot of
insights about what managers need from a software product. We ask people to
be completely honest and forthcoming with us. We treat all sensitive
information with utmost confidentiality.

There will be two teams from SAP meeting with a total of 6 managers and
administrative assistants from
various areas in various business units.


If you can cover it I would say yes.  It's a key race and we have been close
to Ashcroft for years.  Let's make sure he knows we gave it.... we need to
follow up with him.  Last time I talked to him he basically recited the
utilities' position on electric restructuring.  Let's make it clear that we
want to talk right after the election.

	Joe Hillings
	10/16/2000 04:41 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc: Richard Shapiro/NA/Enron@Enron, Cynthia Sandherr/Corp/Enron@ENRON,
Carolyn Cooney/Corp/Enron@ENRON
		 Subject: Ashcroft Senate Campaign Request

Joe Hillings
Enron
1775 Eye Street, NW
Suite 800
Washington, DC  20006
202-466-9145
202-828-3372 (fax)
email:  jhillin@enron.com

We have received a request from the Ashcroft Senate campaign for $10,000 in
soft money. This is the race where Governor Carnahan is the challenger. Enron
PAC has contributed $10,000 and Enron has also contributed $15,000 soft money
in this campaign to Senator Ashcroft. Ken Lay has been personally interested
in the Ashcroft campaign. Our polling information is that Ashcroft is
currently leading 43 to 38 with an undecided of 19 percent.

Do we want to make a further soft money contriubtion of $10,000?

Joe


I just rely on the market services folks to do the right thing.  Tell me if
you think this is yet another area in which I have too much faith in our
business people.

	From:  Drew Fossum                           01/14/2000 08:35 AM

To: Susan Scott/ET&S/Enron@ENRON, Dari Dornan/ET&S/Enron@ENRON
cc:

Subject: MARKETING AFFILIATE RULE: Standard L: Notice No. 11

Who follows up to make sure these changes get made?  Do you guys call market
services or do we just rely on them to respond to these Frazier-grams?  DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/14/2000
08:34 AM ---------------------------

Frazier King
01/13/2000 05:27 PM
To: Kim Perez/FGT/Enron@ENRON, Nancy Bastida/FGT/Enron@ENRON, Georgi
Landau/FGT/Enron@ENRON, Geneva Hiroms/Corp/Enron@Enron, Dorothy
McCoppin/FGT/Enron@Enron, Janet Place/NPNG/Enron@ENRON, Bambi
Heckerman/NPNG/Enron@ENRON, Frazier King/FGT/Enron@ENRON,
Margert_Morton@Sonat.com, Dennis Lee/ET&S/Enron@ENRON, Zuela
Carter/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Susan
Scott/ET&S/Enron@ENRON, Bob M Hall/FGT/Enron@Enron, Patricia
Steele/ET&S/Enron@Enron, Julia White/ET&S/Enron@Enron, Sheila
Nacey/ET&S/Enron@Enron, Shelley Corman/ET&S/Enron@Enron, Dari
Dornan/ET&S/Enron@ENRON, Toby Kuehl/ET&S/Enron@ENRON
cc:

Subject: MARKETING AFFILIATE RULE: Standard L: Notice No. 11

Please open and read the attached "Mkt Aff Memo11" which gives you notice of
the addition of a new company--Bridgeline Holding, L.P.--to the "Exempt
Marketing Affiliate" category of the Enron Pipeline list of "Potential
Marketing Affiliates".  The notice is effective today, the date of formation
of the new company. Standard L of the Marketing Affiliate Rules REQUIRES
POSTING OF ANY CHANGES TO MARKETING AFFILIATES WITHIN THREE DAYS.  This means
that you must add the name and address of this new companies to the the list
of marketing affiliates posted on your respective pipeline's EBB WITHIN THREE
DAYS OF THE COMMENCEMENT OF A TRANSPORTATION TRANSACTION IN WHICH THE COMPANY
IS INVOLVED.

Also, please open the attached "Mkt Aff List11" which is the Eleventh Revised
list of all "Potential Enron Marketing Affiliates".  This list has been
revised to include Bridgeline Holding, L.P.  Keep it in mind that if any of
these affiliates commences or ceases involvment in a transportation
transaction on your pipeline, the company name and address must be
respectively added or deleted from the posting on your pipeline's web site
WITHIN THREE DAYS.  This listing will be revised and sent to you immediately
when there is a change in the list.

Finally, note that affiliated companies which are exempt from being
classified as marketing affiliates are included at the end of the list.  If
any of these companies proposes to transport on your respective Enron
pipeline, please check with your Legal Contact to make sure the exemption is
still in effect.

Individuals listed on the Distribution List of the attached memo
are requested to acknowledge receipt.


Hey Baby,

Sorry that I haven't been able to email you yet.  It's been a busy day
already.  My presentation went well this morning (at least my part
did).  I'm meeting with Jen Garcia to work on our project again today.
I should be home before 7 unless Jen and I have some good things going.
When I get home, I have a exam to study for.

About grad. dinner- I called the other Mezzaluna and they're booked
also.  Bren called her mom for suggestions and she named about 8
different restaurants.  So, hopefully some of them will have room!  I'll
tell you which ones they are when I get home.  PLEASE remind me about
the invitations!  I've got to send them out soon.  I'm sending mine to
your parents, Bren's parents, Tom & Jeanette, and the Denneys.  Anybody
else?

I'm really hungry so I'm going to eat my pb&j sandwich soon!  (Yeah,
food!)  I'm so weak (or is it tired?) that I can't see very well.

Seeing you soon is what keeps me going!

Love you,
Jenn


Start Date: 3/5/01; HourAhead hour: 24;  No ancillary schedules awarded.
Variances detected.
Variances detected in Generation schedule.
Variances detected in Energy Import/Export schedule.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030524.txt

---- Generation Schedule ----
$$$ Variance found in table tblGEN_SCHEDULE.
     Details: (Hour: 24 / Preferred:   1.00 / Final:   0.00)
  TRANS_TYPE: FINAL
  SC_ID: EES
  MKT_TYPE: 2
  TRANS_DATE: 3/5/01
  UNIT_ID: BADLND_7_PL1X2

---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 24 / Preferred:  50.00 / Final:   0.02)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 3/5/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_NANCY
  ENGY_TYPE: WHEEL
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 24 / Preferred:  50.00 / Final:   0.03)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 3/5/01
  TIE_POINT: SYLMAR_2_NOB
  INTERCHG_ID: EPMI_CISO_NANCY
  ENGY_TYPE: WHEEL

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 24 / Preferred:  65.11 / Final:  64.11)
  TRANS_TYPE: FINAL
  LOAD_ID: SCE1
  MKT_TYPE: 2
  TRANS_DATE: 3/5/01
  SC_ID: EPMI


I finished a spreadsheet for calculating historical correlations on forward curves. It gives the correlation matrix for contracts going out an arbritary number of months out. I think it might be a handy tool for some of you.

You may get that on O:\RESEARCH\CUSTOM\CORRELMATRIX\

It demands that you have access to our EGSPROD32 database. You must have that configured in your ODBC. It is a large spreadsheet, so it may take some computing resorces. Let me know if you find any problem.

Thanks.
Paulo Issler


Toni:  I've been gone the last few days, so could you give me an update as to
where we are on Cynthia's offer and/or her response?  Thanks.


Harvard People


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San Diego to help consumers choose a supplier and have made it easier to
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SOURCE Wattage Monitor Inc.
Web Site: http://www.wattagemonitor.com


Bob,

Thanks.

Vince

Robert Hermann@ENRON
01/11/2000 02:19 PM
Sent by: Bobbie Moody@ENRON
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: CONGRATULATIONS!

Vince,

Congratulations on your promotion to Managing Director.

Best wishes for your continued success.

Bob


is that it?


I found a mistake-this is the most updated.  I will bring up hard copies.

 -----Original Message-----
From: 	Kitchen, Louise
Sent:	Monday, November 12, 2001 8:28 AM
To:	Slone, Jeanie
Cc:	Lavorato, John
Subject:

Put the people I cannot find in the right groups.

Add salary and last year's bonus.
 << File: jes_swapcosupportpeople_111201.xls >>


Jacques,

The assets and liabilities that we are willing to assume are listed below:

Assets:

Land
Preliminary Architecture Design-Kipp Flores Architects
Preliminary Engineering-Cuatro Consultants, Ltd.
Soils Study-Kohutek Engineering & Testing, Inc.
Appraisal-Atrium Real Estate Services

Liabilities:

Note to Phillip Allen
Outstanding Invoices to Kipp Flores, Cuatro, and Kohutek

Additional Consideration or Concessions

Forgive interest due
Reimburse $3,500 for appraisal and $2,375 for partial payment to engineer

Let me know if you need more detail.

Phillip


All of  the NYMEX natural gas swap products are very active as well as  the
Gas Daily - Henry Hub prompt month.
Let me know if you have any questions.

Julian Poole@ENRON
10/27/2000 01:52 PM
Sent by: Julian Poole@ENRON
To: Scott Neal/HOU/ECT@ECT
cc:
Subject: EOL product

Hola amigo !!!  I am already missing the Houston beers che.
Hey, we are going live on EOL here in south america.... incredible but real !
Rolo launched gas on monday and I will be coming on probably the following
week.

In order to show potential customers how a liquid product works, could you
tell me what product I can show them to actually reflect a moving bid/offer.

Thanks, Julian


You'd think a firewall would catch all my emails from you freaks!

-----Original Message-----
From: chad knipe [mailto:knipe3@msn.com]
Sent: Tuesday, February 19, 2002 9:42 PM
To: Chet Fenner; 'T FEDER'; EriK Wollam; corrier@cox-internet.com; c.r.zander@att.net; Joe Parks; John Chambers; Brian Constantine; c_r_zander
Subject: Re: LOCATION FOR MAN NIGHT

Again, should I not open this e-mail from "jerky" entitled "Monster Facials being Blasted Here!!".

you'd think a firewall would catch that.

----- Original Message -----
From: Fenner, Chet
Sent: Tuesday, February 19, 2002 5:53 PM
To: 'T FEDER'; erwollam; corrier@cox-internet.com; c k; Fenner, Chet; c.r.zander@att.net; Joe_Parks; john.chambers@bisys.com; brianc; c_r_zander
Subject: RE: LOCATION FOR MAN NIGHT

Either way, it sounds like we're dealing w/ the Axis of Evil Restaurant chain.

Guys, let's just admit that we're all old, don't get it much any more (except for Zander, 'cause he's such a hotty), and don't really care about the food and just meet at the Gold Cup.

-----Original Message-----
From: T FEDER [mailto:lawfeder@msn.com]
Sent: Tuesday, February 19, 2002 4:08 PM
To: erwollam; corrier@cox-internet.com; c k; chet_fenner; c.r.zander@att.net; Joe_Parks; john.chambers@bisys.com; brianc; c_r_zander
Subject: Re: LOCATION FOR MAN NIGHT

not only your ass grape, but you should see the monkey that eats those grapes, especially on Airline Drive.

Nice part of town....hey how about the new Al Qaeda Restaurant on Telephone Road, I heard that its good too with its Sleeper Cell Chili hhmmm hmmm good, and a splash of the Taliban relish...

----- Original Message -----
From: Erik Wollam
Sent: Tuesday, February 19, 2002 12:55 PM
To: corrier@cox-internet.com; knipe3@msn.com; chet_fenner@bmc.com; c.r.zander@att.net; Joe.Parks@enron.com; john.chambers@bisys.com; brianc@saltgrass.com; lawfeder@msn.com; c.r.zander@worldnet.att.net
Subject: LOCATION FOR MAN NIGHT

THIS IS THE PLAN, THEN. THURSDAY 2/28/02 @ RESTRAUNT IDENITIFIED BELOW. Z OR
PIG PLEASE PROVIDE DIRECTIONS. TIME 7:15. E.

>From: "Brian Constantine" <brianc@saltgrass.com>
>To: "Erik Wollam" <erwollam@hotmail.com>
>Subject: RE: Man Night
>Date: Wed, 13 Feb 2002 12:59:32 -0600
>
>I had horrible liquid pudding, accompanied by incessant stomach cramps,
>fever, and general malaise all last week...along w/ my "ass grape"!!!
>Needless to say, I was unavailable for comment. I am now, however, back
>to full health and the grape has vanished....So, I would love to be WITH
>MEN. I vote to go to a new secret dive that Zander is howling about.
>It's called Tampico Seafood. It's some Mexican Seafood type joint on
>Airline Drive, close to the Farmers Markets that Z says is
>"unfuckinbelievable". IM IN.
>
>-----Original Message-----
>From: Erik Wollam [mailto:erwollam@hotmail.com]
>Sent: Wednesday, February 13, 2002 12:42 PM
>To: bcorrier@cox-internet.com; knipe3@msn.com; chet_fenner@bmc.com;
>c.r.zander@att.net; Joe.Parks@enron.com; john.chambers@bisys.com; Brian
>Constantine; lawfeder@msn.com; c.r.zander@worldnet.att.net
>Subject: Man Night
>
>Men:
>
>Hunting season is over. It is now working season. All email threads are
>gone. No one talks to one another. This is wrong.
>
>I therefor propose man night February 28th, 2002 at some location yet to
>be
>determined, such as Tony's mexican food...on Ella.
>
>e.
>
>
>
>_________________________________________________________________
>Chat with friends online, try MSN Messenger: http://messenger.msn.com
>

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Mary Lynne,

Just wanted to updated you on the current prepay that is scheduled to close
next thursday (28th) with Chase and Fleet.  The prepay is anticipated as
follows:

Total Funds      $330,000,000
Financing Expenses:
 Upfront to Banks $2,582,500
 Surety Bonds  $2,175,670
  Total Fees         $4,758,170

Anticipated Cash Flow    $325,241,830

The anticipated reserve related to ENE cost of funds versus the prepay is
estimated to be ($130,501) while the timing differential between delivery
date and settlement date (55 days) is estimated to be ($2,949,879).  Please
let me know if you have any questions or need any additional information.
Thanks again for your help.

Michael
31864


Dave:

Thanks for the info. I just want to make sure I understand your message
correctly. Notwithstanding wgat the emissions may be, you believe we can
operate between 50% and 100% load when firing either gas or oil. So, if gas
emissions are 50PPM NOx, and oil is 100PPM (obviously a hypothetical), our
operating hours would not be reduced to a greater extent that if we were at
100% load and 9PPM and 42PPM NOx. Is this correct?

Ben

-----Original Message-----
From: Kellermeyer, Dave
Sent: Mon 6/4/2001 9:32 AM
To: Mitro, Fred; Mann, Kay; Jacoby, Ben
Cc:
Subject: RE: Midway Toll term sheet & LOI - comments

FYI, there is nothing in the permit that provides an allowable lower limit on
the turbine load factor.  In the permit application, we provided emission
estimates for 50 to 100 percent load and termed this as the "expected range
of operating conditions".  We can operate below 50 percent load, but would
likely need to do initial stack compliance tests at the lowest load we would
operate the plant.

Since the emission guarantees from GE will likely be for a range of 50 to 100
percent load factors, I suggest that we adopt 50 percent load (approximately
85 MW per turbine) as the mimimum turbine load.

Dave

  -----Original Message-----
 From:  Mitro, Fred
 Sent: Friday, June 01, 2001 5:57 PM
 To: Mann, Kay; Jacoby, Ben
 Cc: Kellermeyer, Dave
 Subject: Midway Toll term sheet & LOI - comments

 Ben/Kay:

 Attached are my comments on the Midway Tolling term sheet and LOI.

 I will be out on Monday but will have my cell phone on.  My conversations
will be regularly interrupted by golf strokes, but I will do my best to be
available.

 Call me if you have specific questions/issues to discuss.  I have asked Dave
Kellermeyer to call either one of you on Monday with an answer to the minimum
block size for the tolling term sheet.  I am taking the air permit home to
review and will leave you a message if I determine the answer.

 Fred

  << File: Kay Mann Term sheet June 1(fred's marked).doc >>

  << File: Kay Mann Tolling Term sheet June 1(Fred'smarked).doc >>


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[IMAGE]


PROCESSING

42750/20771	Oxy		1/1/02-12/31/01	42,466/d	Extend $ to Demarc	ROUTING

TENDERED

42661/107919	Virginia Pwr	11/01 - 10/31/04	150,000/d	Add Rate Lang		Tendered 11/6/01

TERMINATING - NNG    (Unless extended prior to 11/30/01)*

107704		Conoco			5,500/d		Permian to Permian

107903		NGTS			85,000/d		Permian to Permian

108084		Mirant			6,534/d		Various to Demarc

108301		NGTS			23,000/d		Permian to Permian

108377		CMS Marketing		7,000/d		MidCon to MidCon

108475		WGR			5,000/d		Permian to Permian

108479		Richardson		25,000/d		Permian to Permian

108481		Mirant			69,200/d		Ogden to Ogden

* EOL Agreements and Agreements with day-to-day terms are not included on this list...


PP will own 80% of SE, Enron owning the remaining 20%.

"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 04/09/2001 12:44:37 PM
To: "'kay.mann@enron.com'" <kay.mann@enron.com>
cc: "Johnson, Lee L (PS, GE AEP)" <lee.johnson@ps.ge.com>

Subject: Salmon Energy

What is the relationship between Salmon Energy and Pegasus Partners?

g          GE Power Systems

____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
___________________________
   Kent A. Shoemaker
   Counsel
   GE Industrial Aeroderivative Gas Turbines
   GE Aeroderivative and Package Services
   1 Neumann Way
   MD S150
   Cincinnati, Ohio 45215
   Phone:  (513) 552-5838  Dial*Comm:  8*892-5838
   Mobile:  (513) 604-4687
   Fax:      (513) 552-2882 Dial*Comm:  8*892-2882
   Internet:  Kent.Shoemaker@ae.ge.com

> ********************************NOTICE********************
> The information contained in this document and any documents attached
> hereto may be a confidential attorney-client communication or may
> otherwise be privileged or confidential.  It is the property of General
> Electric Company and shall not be used, disclosed to others, or reproduced
> without the express written consent of General Electric Company.  If you
> are not the intended recipient, you are hereby notified that you have
> received this transmittal in error; any review, dissemination,
> distribution or copying of this transmittal is strictly prohibited.  If
> you have received this transmittal and/or attachments in error, please
> notify us immediately by reply or by telephone (call us at +1 513
> 552-5838) and immediately delete this message and all its attachments.
> Thank you.
>
>


---------------------- Forwarded by Constance Charles/HR/Corp/Enron on
11/01/2000 09:14 AM ---------------------------

Constance Charles
11/01/2000 09:09 AM
To: scott5@enron.com
cc:

Subject: SUPER SATURDAY DINNER ITINERARY - TABLE 7

Susan,

Sorry you are just receiving.  I was unaware there were 2 Susan Scotts.

If you have any questions, or need any additional information, please do not
hesitate to contact me @ x3-5614.

Thanks.

-Constance.
---------------------- Forwarded by Constance Charles/HR/Corp/Enron on
11/01/2000 09:08 AM ---------------------------

Constance Charles
10/30/2000 05:31 PM
To: Lisa Polk/HOU/EES@EES, Susan Scott/ET&S/Enron@ENRON
cc: Julie Braly/NA/Enron@ENRON

Subject: SUPER SATURDAY DINNER ITINERARY - TABLE 7

If you have any questions, please contact Julie Braly, 713-853-7351.

Dinner Team Itinerary

Date:    Friday, November 3, 2000

Restaurant: Clive,s
            517 Louisiana
   713-224-4438

Cocktails:  7:45 PM

Dinner:       8:45 PM ) 10:30 PM

Table No. 7

Thank you for your participation in this important recruiting event.  Please
bring your business cards.

Executive Host:  Lisa Polk

Associate/Analyst Co-host: Susan Scott

Dinner Details:

Thank you for your participation in this important recruiting event.

All Super Saturday candidates will be arriving at the restaurant by shuttle.
A member of the Associate and Analyst Program staff will greet them.  This
staff member will also be there to assist you.  All hosts and co-hosts are
invited to ride the shuttle or you may provide your own transportation to the
restaurant.

There will be a short cocktail reception prior to dinner. During the
reception, you will have the opportunity to meet many of the candidates.  A
table has been reserved in the Executive Host,s name.  Students will not have
seating assignments this year.  The hosts should feel free to invite up to
four students to sit at their table if desired.

Dress for the evening is business attire.  Hosts are no longer responsible
for the bill.

In case of emergency, contact Julie Braly, Director, Career Development,
Associate & Analyst Program, 713-853-7351 (Office), 713-306-4996
(Cell Phone).

If you would like to provide feedback on any candidate, an evaluation form is
attached or you may discuss your input with the Associate and Analyst staff
member after dinner. The evaluation form must be faxed to 713- 646-5935,
prior to 12:00 p.m. on Saturday to be included in the decision meeting.

Candidates Attending:

Baylor
Oklahoma
Rice
Texas A&M
University of Florida
University of Texas


major changes to Fixed Price and Additional Provisions


For Immediate Release

Last Chance to Register for

Profit Optimization Web Seminar on Natural Gas Trading

February 4, 2002-Houston- PROS Revenue Management, the world's leader in pricing and revenue optimization science and software, will host an Energy Profit Optimization Web Seminar for natural gas trading on February 7, 2002, 3:00 - 4:00pm Central Time.  This is the last chance to register.

The PROS Trading Optimization System utilizes PROS network optimization technology to optimally schedule natural gas volumes to market across multiple pipelines and provide buy/sell recommendations that maximize the revenue and utilization from all transportation assets.  In addition to the 10-15% profitability lift from optimal gas scheduling, the system also completely automates the scheduling process.  The PROS Trading Optimization System has been in live use since 2000.  Version 2.0 of the TOS system has been completely parameterized allowing companies to dynamically configure the system for multiple unique pipeline trading strategies and tariffs.  The result is the reduction of the gas scheduling process to less than 60 seconds.

These seminars will cover the basics of increasing revenues and profits while providing insight on how real-time data can be used to optimize profits.  The Web format will allow participants to attend from remote locations, ask questions in real-time, and interact with the presenter through an Internet browser and toll-free telephone number.  Participants of previous PROS seminars have found these sessions to be extremely helpful in improving their business and making them more valuable to their respective organizations.

PROS Revenue Management solutions have been credited with delivering 6-8% incremental revenue and 20-100% incremental profits.  These Web seminars will allow industry leaders to learn from the experience PROS has gained in over 17 years of deploying these solutions.

This seminar is free of charge, spaces are limited for a first come first served basis.  More information and registration can be found at: www.prosRM.com <http://www.prosrm.com/>.  Interested participants will be contacted to receive conference access information.

PROS Revenue Management is the world's leader in pricing and revenue optimization solutions and the pioneer and dominant provider of revenue management to the airline and energy industry. PROS provides system solutions to the airline, energy, cargo, rail, healthcare, and broadcast industries, and has licensed over 235 systems to more than 95 clients in 39 countries. PROS' clients include 15 of the top 25 carriers in the airline industry.

The PROS mission is to maximize the revenue of each client using PROS' world-leading revenue management science, systems solutions, and best practices business consulting. PROS' clients report annual incremental revenue increases of 6-8% as a result of revenue management. PROS' solutions forecast demand, optimize inventory, and provide dynamic pricing to maximize revenue.

Founded in 1985 in Houston, PROS Revenue Management has a six-year compounded revenue growth of 40%, in large part due to the intellectual capital of its staff. Nearly half of PROS' professional staff has advanced degrees and the staff speaks a cumulative total of 26 languages. The company is profitable with Year 2000 revenue of $29 million. For more information on PROS Revenue Management, please visit www.prosRM.com or call 713-335-5151.


Critical Migration Information:

1. Your scheduled Outlook Migration Date is THE EVENING OF :
2. You need to press the "Save My Data" button (only once) to send us your
pre-migration information.
3. You must be connected to the network before you press the button.
4. If a POP-UP BOX appears, prompting you to "ABORT, CANCEL OR TRUST SIGNER"
please  select TRUST SIGNER.
5. Any information you Add to your Personal Address Book, Journal or calendar
after you click on the button will need to be manually re-added into Outlook
after you have been migrated.
6. Clicking this button does not complete your migration to Outlook. Your
migration will be completed  the evening of your migration date.

    Failure to click on the button means you WILL NOT get your Calendar,
Contacts, Journal and ToDo information imported into Outlook the day of your
migration and could result in up to a 2 week delay to restore this
information.

If you encounter any errors please contact the resolution center @
713-853-1411


I called the airline there has been a change of schedule:

	New Flight Information:
	Airline:  Same (United)
	Flt #:	1670
	Airport:	DFW
	Time:	1:00 pm (arrive DFW)

Make note, if there are any screw ups heads will roll.

Paul

PS  Don't make me wait, NO ONE MAKES ME WAIT!!!


CALENDAR ENTRY:	APPOINTMENT

Description:
	Gerry Medeles

Date:		3/28/2001
Time:		3:00 PM - 4:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


Ditto Credit.
Assume PECo and ComEd are physical power only as have no new EOL ID yet.
Merged to form Exelon Generation Company, LLC. Have unlimited guarantee in
place with Exelon Corp for physical power trading.

	Tana Jones@ECT
	05/24/2001 04:15 PM

		 To: Alan Aronowitz/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Marcus
Nettelton/NA/Enron@ENRON, Harry M Collins/HOU/ECT@ECT, David
Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENt, Robbi Rossi/Enron
Communications@Enron Communications, John Viverito/Corp/Enron@Enron, Jane
McBride/AP/Enron@Enron, Andrea Calo/SA/Enron@Enron, Peter Keohane/CAL/ECT@ECT
		 cc:
		 Subject: EOL Approvals: 05-24-01

----- Forwarded by Tana Jones/HOU/ECT on 05/24/2001 04:15 PM -----

	Tom Moran/ENRON@enronXgate
	05/24/2001 04:10 PM

		 To: Karen Lambert/ENRON@enronXgate, Tana Jones/HOU/ECT@ECT, Samuel
Schott/ENRON@enronXgate, Mark Taylor/HOU/ECT@ECT, Brant
Reves/ENRON@enronXgate, Debbie R Brackett/ENRON@enronXgate, Cynthia
Clark/ENRON@enronXgate, Enron Europe Global CounterParty/LON/ECT@ECT,
Stephanie Sever/ENRON@enronXgate, Tom Moran/ENRON@enronXgate, Claudia
Clark/ENRON@enronXgate, William S Bradford/ENRON@enronXgate, Lisa
Lees/ENRON@enronXgate, Juana Fayett/ENRON@enronXgate, Jana
Morse/Corp/Enron@Enron, Trang Le/ENRON@enronXgate, Paul Maley/LON/ECT@ECT,
Sonya Clarke/LON/ECT@ECT, Tim Davies/LON/ECT@ECT, Karen
O'Day/ENRON@enronXgate, Tanya Rohauer/ENRON@enronXgate, Kelly
Lombardi/ENRON@enronXgate, Brian Lindsay/Enron Communications@Enron
Communications, EOL Call Center@ECT, Bill D Hare/ENRON@enronXgate, Amy
Heffernan/Enron Communications@Enron Communications, Molly
LaFuze/HOU/ECT@ECT, Danny Clark/Enron Communications@Enron Communications,
Stephanie Panus/NA/Enron@Enron, Teresa Mandola/ENRON@enronXgate, Bill
Kyle/ENRON@enronXgate, Amber Ebow/ENRON@enronXgate, Thu Pham
Arnold/ENRON@enronXgate, Tandra Coleman/ENRON@enronXgate, Lesli
Campbell/ENRON@enronXgate, Wendi Lebrocq/ENRON@enronXgate
		 cc:
		 Subject: EOL Approvals: 05-24-01

Please see attached

Regards,
Tom Moran
713-853-3017


Please note new dates times and locations!

We will be continuing the Credit/Legal seminars on the following schedule.
Please add these dates to your calendars:

Session 3:  The Credit Support Annex and Paragraph 13
April 4 (Wednesday)
2:00 - 3:30 p.m.
EB49c3

Session 4:  The Credit Support Annex and Paragraph 13 (continued)
April 18 (Wednesday)
2:00 - 3:30 p.m.
EB49c3

Session 5:  The Credit Worksheet
May 9 (Wednesday)
2:00 - 3:30 p.m.
EB49c1

Session 6:  Letters of Credit, Guaranties and Equity Structures
May 23 (Wednesday)
2:00 - 3:30 p.m.
EB49c4

Session 7:  Higher Risk Counterparties, Early Termination, Master Netting
Issues and Canadian Issues
June 6 (Tuesday)
2:00 - 3:30 p.m.
EB49c4

Session 8:  (if needed)
June 20
2:00 - 3:30 p.m.
EB49c3

Session 9:  (if needed)
July 11
2:00-3:30 p.m.
EB49c3

A reminder e-mail will be sent a day or two before each session.  Due to the
amount of information discussed and time constraints, please be aware that
the topics on these dates may run over to the following sessions.


Need Ethics? Check out CLE Online! <http://www.hba.org/cle-online.html>

2001 Civil Court Ad Litem Institute	            	 HVLP Family Law
Seminar
October 5, 2001	            	 October 19, 2001
12:00 noon until 5:00 p.m.	            	 8:00 a.m. - 5:00 p.m.
Harris County Jury Assembly Room,
1019 Congress	            	 South Texas College of Law,
1301 San Jacinto
4.5 hours MCLE credit,
including 1.25 hours ethics credit	            	 6.25 hours MCLE
credit
1.0 hours ethics credit
CLICK HERE <http://www.hba.org/cgi-local/pages/cle-institutes.pl>  for more
information
and to print a registration form! 	           	 CLICK HERE
<http://www.hba.org/cgi-local/pages/cle-seminars.pl>  for more information
and to print a registration form!

News & Events

Don't Miss the 52nd Annual Harvest Party!
Join your colleagues for this festive event that benefits the Houston Bar
Foundation. The Harvest Party is set for November 12, 7-10 p.m., at River
Oaks Country Club. Tickets are $75 per person, payable to the Houston Bar
Foundation. See your October Bulletin for a ticket order form, or watch the
mail for an invitation. Deadline to purchase tickets is November 8; no
tickets sold at the door.For more information contact Rusty Bienvenue
<mailto:rustyb@hba.org> .
Order your tickets now! Order  <http://www.hba.org/harvestreg.htm> Form
Print out, complete and send in
This Year's Harvest Party Underwriters <http://www.hba.org/underwriters.htm>
as of October 2, 2001

Judicial Independence Forum
The Houston Bar Association and the League of Women Voters are sponsoring a
Judicial Independence Forum on Thursday, October 11, from 5:30 to 7:30 p.m.
at South Texas College of Law, Garrett Townes Auditorium, 1303 San Jacinto.
At this local forum, a panel of speakers will debate various proposals for
changing the way judges are elected in Texas. All members of the Houston Bar
Association are invited to attend this free program.

SBOT Relief Fund for Victims of Terrorist Attacks
The State Bar of Texas has created a relief fund to give Texas attorneys and
firms the opportunity to demonstrate their support of the victims of the
terrorist attacks in New York, Washington, D.C., and Pennsylvania.
Contributions may be sent to the Texas Bar Foundation Relief Fund, P.O. Box
12487, Austin, TX 78711-2487. For information call 800-204-2222, ext. 2135.

Fall Coat and Warm Clothing Drive to Help Homeless
Houston's shelters report donations are down because of support going to
victims of the recent disasters. If your firm has never participated in the
HBA's Annual Fall Coat and Warm Clothing Drive, perhaps this is the year to
start. Gently-used coats, jackets, clothing , blankets, and business attire
are needed for men, women and children of all ages. Collection within firms
and offices is October 22-November 2, with drop off at the HBA office
November 5-9. For more information contact Lynn Dougherty
<mailto:lynnd@hba.org> .

Are You a Recently Licensed Attorney?
If so, consider becoming involved in the HBA's Mentor Program, which pairs
recently licensed attorneys with more experienced attorneys in a
mentor/prot?g? relationship. Mentors also are needed. For more information,
see Membership/Mentor  <http://www.hba.org/membership-mentor.html> Program.

School Supplies Needed!
Please help students in the North Forest Independent School District by
donating school supplies for needy middle school students. Items needed
include loose-leaf notebook paper, pocket folders, #2 pencils, pens and
rulers. Cash donations to purchase supplies also are welcome! Donations may
be delivered to the HBA office, 1001 Fannin, Suite 1300. For information
contact Lynn  <mailto:lynnd@hba.org> Dougherty.

 - masthead.gif
 - CLE Headline.gif
 - Oct. E-Bulletin.html


Hey, I'm getting a mental image here ( of you pawing the ground that is)!!

Backs doing ok right now.  I'm getting a second opinion next Monday.  If the
second opinion comes in with the same verdict, then I will probably have the
surgery in April or May.  Jerry said a friend of his told him it took a whole
month to recover.  I'm thinking a week max then I can go back to work, we
shall see.  I can't make money if I'm not at work, and my p&l is a big part
of my evaluation next year.

AND I'm afraid to buy a new truck with the stock market situation.  Who knows
- I may be out of work sometime soon.


I see where Enron might be in a little trouble with their stock.  Hope
you don't have too much of that stock.  Big game on Saturday.  I am
going down with Pat to the game.  Dad is going with Jeannie and Gary.
Every thing is fine up here . I have 50 weeks left to work.  I think I
can make it. Next time to talk to dad you may ask him when was the last
time him and Bob Potter beat me and Pat in golf.  We have kicked them
the last three times.  Joan still has not come to Omaha and visisted
dad.  I think I might send her a picture of her father so she knows what
he looks like.  Talked to Gary Stevens last night and Jean was having
some dizzy spells yesterday when she woke up.  She is going to the
doctor today.  Gary said she was really doing well .  When I talked to
her, she even sounded like her old self.  Hopefully it's just an inner
ear infection or problems with her sinuses.  I will keep you posted.

GO BIG RED!


Geoff/Hunter,
If this agreement works for all parties, I want to ensure this plan is
communicated to the East/Mid-West regions to provide communication across the
Enron created regional boundaries.

Please advise.

Thanx,
Laura
----- Forwarded by Laura Luce/Corp/Enron on 02/12/2001 12:00 PM -----

	Eric LeDain@ECT
	01/29/2001 04:02 PM

		 To: Laura Luce/Corp/Enron@Enron
		 cc: Rob Milnthorp/CAL/ECT@ECT, Geoff Storey/HOU/ECT@ECT, Jonathan
McKay/CAL/ECT@ECT
		 Subject: Eastern Canada LDC gas coverage

Laura,
Geoff and I talked over the coverage on the eastern Canada LDC's (Union and
Consumers in particular).

Presently the following occurs:
i) Calgary origination covers eastern industrials and some structured LDC
business (eg. asset mgmt or unbundling issues);
ii) Calgary trading covers one month Empress sales to the LDC's;
iii) Geoff and his middle marketers cover Union and Consumers for mid market
storage or transport plays in Ontario (or the US for Union and Consumers
assets in the US), plus US gas supply into Panhandle or ANR transport held by
the LDC's.  Geoff of course also does the Dawn, Parkway etc. trades.  Calgary
origination also does some mid market deals with Union.

Canada origination is in the process of hiring a director and manager for the
Toronto office to cover gas eastern LDC's and industrials.  Offers went out
to these individuals last week.

Here's what we would see as the going forward arrangement:
i) The new Toronto based originators, with support from Calgary origination,
will handle all structured products with the eastern LDC 's.   This would
include longer term transport and storage arrangements and unbundling
services, risk management products, and term commodity sales or purchases,
physical and financial.   Basic middle market deals within Canada would be
done by the Toronto originators working with Geoff, just as any middle
marketer dealing with the trader.  There would be on-going coordination with
Geoff et al in Houston to make this work;
ii) Calgary trading will continue to cover one month Empress sales;
iii) All gas supply for the LDC's bought to be put onto their US pipes, will
be done out of Houston by Geoff et al.  Toronto would be advised of any
transactions just to be kept up to date on the LDC's actions;
iv) Shorter term (seasonal or less) storage or pipe positions taken by Geoff
to manage trading positions in Ontario or the border points, or to create
opportunities, will continue to be done by Geoff et al.  For any longer term
positions, Toronto origination and Geoff will work together to ensure value
is maximized.

Laura, please give me a call (403-974-6741) with any questions on this.
Geoff, if anything doesn't look right, let me know.


Sounds good to me. I haven't talked with Dad today so I'll let you know
later.  LU-M
----- Original Message -----
From: <Eric.Bass@enron.com>
To: <lwbthemarine@bigplanet.com>; <daphneco64@bigplanet.com>
Sent: Thursday, November 09, 2000 11:10 AM
Subject: Friday

> What are you doing for dinner tomorrow?  Would you like to meet up with
> Shanna and I somewhere?
>
> Let me know.
>
> -E
>


We had to amend the agreements to give us more time.  The new version I sent
you fixed that.
---------------------- Forwarded by Kay Mann/Corp/Enron on 03/01/2001 01:07
PM ---------------------------

"Campbell, Carolyn" <CCampbell@KSLAW.com> on 01/04/2001 10:30:14 AM
To: "'gkutzschbach@fulbright.com'" <gkutzschbach@fulbright.com>
cc: "'kay.mann@enron.com'" <kay.mann@enron.com>, "'dpedigo@intergen.com'"
<dpedigo@intergen.com>, "'ben.f.jacoby@enron.com'" <ben.f.jacoby@enron.com>,
"'fred.mitro@enron.com'" <fred.mitro@enron.com>, "Keffer, John"
<JKeffer@KSLAW.com>

Subject: Amendments to Letter Agreements

 <<2SX8RED.DOC>>  <<2T2901!.DOC>>  <<2T2$01!.DOC>>

We have enclosed drafts of the following documents:

1.  Amendment No. 1 to Letter Agreement for CA Energy Development I (marked
to reflect revisions from the draft circulated 01/02/01);
2.  Amendment No. 1 to Letter Agreement for CA Energy Development II -
Turbine (clean copy identical to the amendment for CA/ED-I except for the
name of the LLC in the reference clause); and
3.  Amendment No. 1 to Letter Agreement for CA Energy Development II -
Transformer (marked to reflect revisions from the amendment for CA/ED-I);

Please advise of any further comments at your earliest convenience.  Thank
you.

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

Enclosures: 130796vR2/1
  130977v1
  130979v1 R 130796v2

                    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.

 - 2SX8RED.DOC
 - 2T2901!.DOC
 - 2T2$01!.DOC


This deal is starting to get confusing.... so here is the whole deal
effective 3/21 to 3/31.

  gulf / leach/coh 22-3

38011/46 8979/8711/8527
51875/25 3657/3548/3473
60599/7  3159/3065/3000
63895/6  3686/3576/3500
63895/8  0/1917/1876  This piece from TCO pool.

No contracts are currently overrun.

Cindy/Kathy/Jesse - we are pulling 19481 from your p20 pool on contract
63895, which max's out the contract. Any additional Aristech coh 22-3 sale
will  have to be from TCO pool.

Kara - we are delivering to coh 22-3 as follows:
38011 = 8527
51875 = 3473
60599 = 3000
63895 = 5376

John - I have 550,154 being pulled from p20 for the month. I hope that ties
to your number. I cannot pull any additional gas from p20, because this would
overrun your FTS1 contract. The 1 dkt SIT can be made up from Enron's TCO
pool. Please verify that this is okay. I'll schedule it for 3/23 gas day.

Thank you everyone for your patience!!!!!!!!!!!!!!!!!!!

Chris Germany@ECT
03/21/2000 09:40 AM
To: Joan Veselack/Corp/Enron@ENRON, Katherine L Kelly/HOU/ECT@ECT, Jesse
Villarreal/HOU/ECT@ECT, bperron@columbiaenergy.com
cc: Robert Allwein/HOU/ECT@ECT, Joann Collins/Corp/Enron@ENRON

Subject: CES/Aristech deal

I sold CES 2727dt of CGLF mainline gas (deal 221731) effective 21st-31st.
Aristech only had enough mainline capacity to pull away 751 dt.  I changed
the volume on this deal and created another sale to CES at the CGAS pool
(deal 222359) for a volume of 1917 dt.

 2727 - 751 = 1976 at mainline.
1976 at mainline less fuel of 2.988% = 1917 at the CGAS pool.

Price = $2.77
 .1045  variable cost mainline to Leach
 .0250  demand charge
 ---------
 2.8995 CGAS price.

Please let me know if you have any questions.


<http://www.skippingstone.com/eblast.gif>

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CALENDAR ENTRY:	APPOINTMENT

Description:
	Dave Nutter/Conference Call - 7 AM Nom Cycle Issue/conference room 4194

Date:		10/10/2000
Time:		10:00 AM - 11:00 AM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


I wonder if we should give a special pay to Kim and Kay almost as an overtime
payment.  They both work about 12 hours a day.

John


-----Original Message-----
From: Arnold, John
Sent: Wednesday, October 10, 2001 4:29 PM
To: Ring, Andrea
Subject: FW: Physical RFP Requests- for nOV 01 - mAR 02 (nIPSCO,
PIEDMONT AND WEST kY SYSTEMS)

-----Original Message-----
From: Fraser, Jennifer
Sent: Tuesday, October 09, 2001 2:16 PM
To: Arnold, John
Subject: Physical RFP Requests- for nOV 01 - mAR 02 (nIPSCO, PIEDMONT
AND WEST kY SYSTEMS)

please SEND TO  to correct individuals

-----Original Message-----
From: Pamela_Edwards@dom.com [mailto:Pamela_Edwards@dom.com]
Sent: Tuesday, October 09, 2001 3:05 PM
To: undisclosed-recipients
Subject:

Dear Supplier:

Dominion Energy Consulting is the Fuel Manager and Agent for E.R. Carpenter Co..
We  are soliciting supply offers from your company on the attached load profiles
for  the  term  period  November 1, 2001 through March 31, 2002.   We understand
each  supplier  cannot  serve  all locations, so bid only on those where you are
competitive.

Your  offers should include Full Firm Requirements NYMEX basis to the City Gate.
The  location  and  LDC  is  included with each plant


-----Original Message-----
From: Cook, Mary
Sent: Thursday, October 25, 2001 5:34 PM
To: Jones, Tana
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

-----Original Message-----
From: Gray, Barbara N.
Sent: Thursday, October 25, 2001 3:31 PM
To: Koehler, Anne C.; Cook, Mary; Shackleton, Sara; Taylor, Mark E (Legal); Sayre, Frank; Hendry, Brent
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

FYI
-----Original Message-----
From: Lees, Lisa
Sent: Thursday, October 25, 2001 3:05 PM
To: Gray, Barbara N.
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

-----Original Message-----
From: Denny, Jennifer
Sent: Wednesday, October 24, 2001 1:43 PM
To: Lees, Lisa
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

-----Original Message-----
From: Puthigai, Savita
Sent: Wed 10/24/2001 11:11 AM
To: Engel, Thomas; Denny, Jennifer
Cc:
Subject: FW: Texas Monthly (November 2001): How Enron Blew It

 -----Original Message-----
From:   McKinney, Lara
Sent:   Wednesday, October 24, 2001 8:43 AM
To:     Enron London - EOL Product Control Group; Puthigai, Savita
Subject:        FW: Texas Monthly (November 2001): How Enron Blew It

FYI - it is a good article

 -----Original Message-----
From:   Connelly, Angela
Sent:   24 October 2001 10:59
To:     McKinney, Lara
Subject:        FW: Texas Monthly (November 2001): How Enron Blew It

This is a long one - but definitely worth reading.

Cover title: Enron's Cutthroat Culture
*******************************************************************************************************************************************************************

How Enron Blew It
Less than a year ago, the Houston-based energy behemoth had everything: money, power, glitz, smarts, new ideas, and a CEO who wanted to make it the most important company in the world. Now its stock is down, wall street is bearish, and the CEO is gone. What went wrong?

by Mimi Swartz < <http://www.texasmonthly.com/mag/issues/authors/mimiswartz.php>>
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like the international headquarters of the best and the brightest. The lobby in no way resembles the hushed, understated entryways of the old-fashioned oil companies, like Shell and Texaco nearby. Enron, in contrast, throbs with modernity. The people hustling in and out of the elevators are black, white, brown; Asian, Middle Eastern, European, African, as well as American-born. They are young, mostly under 35, and dressed in the aggressively casual uniform of the tech industry-the guys wear khakis, polo shirts, and Banana Republic button-downs. Almost preposterously fit, they move through the building intently, like winners. Enron is nothing if not energetic: A Big Brother-size TV screen frantically reports on the stock market near a bank of elevators, while another hefty black television relaying the same news greets people entering from the garage. A sculpture of the corporate symbol, an E tipped at a jaunty angle, radiates colors as it spins frenetically on its axis; a Starbucks concession on the ground floor keeps everyone properly caffeinated. Multicolored, inspirational flags hang from the ceiling, congratulating Enron on its diversity and its values; one more giant banner between elevator banks declares Enron's simple if grandiose goal: "From the World's Leading Energy Company to . . . The World's Leading Company!"

For a while, that future seemed guaranteed, as Enron transformed itself from a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000. It was a Wall Street darling, with a stock price that increased 1,700 percent in that sixteen-year period, with revenues that increased from $40 billion to $100 billion. "The very mention of the company in energy circles throughout the world creates reactions ranging from paralyzing fear to envy," notes a 2001 report from Global Change Associates, a firm that provides market intelligence to the energy business.

This Enron was largely the creation of Jeff Skilling, a visionary determined to transform American business. Hired sixteen years ago as a consultant by then-CEO Ken Lay, Skilling helped build a company that disdained the old formula of finding energy in the ground, hauling it in pipelines, and then selling it to refineries and other customers. Instead, it evolved into a company that could trade and market energy in all its forms, from natural gas to electricity, from wind to water. If you had a risky drilling venture, Enron would fund it for a piece of the action. If you wanted your megacorporation's energy needs analyzed and streamlined, Enron could do the job. If you were a Third World country with a pitiful infrastructure and burgeoning power needs, Enron was there to build and build. Basically, if an idea was new and potentially-and fantastically-lucrative, Enron wanted the first crack. And with each success, Enron became ever more certain of its destiny. The company would be the bridge between the old economy and the high-tech world, and in February of this year, Skilling reaped his reward when he succeeded Lay as chief executive officer. Enron, says Skilling, "was a great marriage of the risk-taking mentality of the oil patch with the risk-taking mentality of the financial markets."

The Enron story reflects the culture that drove American business at the end of the twentieth century. Like the high-tech companies it emulated, Enron was going to reinvent the American business model and, in turn, the American economy. Maybe it was natural that this Brave New World also produced a culture that was based on absolutes: not just the old versus the new, but the best versus the mediocre, the risk takers versus the complacent-those who could see the future versus those who could not. The key was investing in the right kind of intellectual capital. With the best and the brightest, a company couldn't possibly go wrong.

Or could it? Today Enron's stock trades at around $35, down from a high of $80 in January. The press cast Enron as the archvillain of California's energy crisis last spring, and Skilling caught a blueberry pie in the face for his relentless defense of the free market. A long-troubled power plant project in India threatened the company's global ambitions. Telecommunications, in which Enron was heavily invested, imploded. Wall Street analysts who once touted the company questioned its accounting practices. Some of the change in Enron's fortunes can be attributed to the economic downturn in uncertain times that has afflicted all of American business. But the culture that the company created and lived by cannot escape blame.

ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about business-we got it." At Enron, in fact, you either "got it" or you were gone-it was as simple as black and white. It is not coincidental, then, that the color scheme of Skilling's River Oaks mansion mirrors the corporation he once headed. Here, the living room's white walls shimmer against the mahogany floors. Black leather trims the edge of snowy carpets. Billowy sofas set off the jet-black baby grand. In the entry, white orchids cascade from a black vase on a black pedestal table that in turn pools onto cold, white marble. There is only one off-color note: After almost twenty years, Jeff Skilling is no longer associated with Enron, having resigned abruptly after just six months as CEO. Once, Skilling was hailed as the next Jack Welch (General Electric's masterful CEO), as one of Worth magazine's best CEO's in America (anointed in 2001), and even as a daredevil who hosted the kind of unchained adventure junkets in which, a friend told BusinessWeek, "someone could actually get killed." Today, he sounds more like Ebenezer Scrooge on Christmas morning. "I had no idea what I'd let go of," Skilling says of all the personal sacrifices he made while retooling Enron.

From a black chair in the white library, across from a huge black and white photograph of his daughter and two sons, Skilling clarifies. The demands of working 24-7 for Enron caused him to ignore his personal finances. Divorced, he lived in a 2,200-square-foot house without a microwave or a dishwasher. He almost missed his brother's wedding. "Learning a foreign language-I never learned a foreign language!" he exclaims. He never once took his youngest son to school. "I'm interested in the kids. You don't do kids in fifteen-minute scheduling." Travel: "You can't go to Africa for a week and get anything out of it!" Skilling includes the study of architecture and design on his list of missed opportunities, then he stops and sighs. "I'm not sure that fulfillment in life is compatible with a CEO's job," he says, finally. Then his eyes lock on mine, and his voice, which had softened, regains its pragmatic edge. "It would have been easy to stay," he says. "But that would not have been good for me."

He's a smallish, ruddy-faced man who keeps himself at fighting weight, handsome in the way of corporate titans, with piercing cheekbones and that assiduously stolid gaze. But the impatience Skilling once reserved for cautious underlings and dull-witted utility company executives is now targeted at reporters who have labeled his resignation "bizarre" and associates who are bitterly skeptical of his need for family time. His shrug stretches the limits of his shimmering blue button-down, and his matching blue eyes look put upon. "I'm surprised," he says, "that people have so much trouble understanding this."

PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early nineties couldn't help but notice a funny and, for its time, novel scene unfolding throughout the workday at the base of the Enron Building. From nine to five and before and after, you could see people slipping out of the pristine silver skyscraper to smoke. They perched on the chrome banisters or lurked near the glass doors at the entry, puffing like mad. They always looked hurried and furtive, even ashamed. Whatever people knew about Enron in those days (and most people didn't know much), it was often associated with that scene: Enron boasted one of the first nonsmoking corporate headquarters in Houston, and there couldn't have been clearer evidence of its break with the energy world of the past. What macho engineer would have put up with such humiliation?

But this company was a child of another time, that period in the mid-eighties when chaos enveloped the gas business. Federal deregulation of natural gas turned a steady, secure industry, in which gas pipeline companies frequently enjoyed a monopoly in portions of the areas that they served, into a volatile free-for-all. The situation was compounded five years later by federal deregulation of the pipeline business. So it happened that a gentlemanly gas pipeline company, Houston Natural Gas (HNG) found itself under attack from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG was then run by Lay, a sturdy, taciturn former economics professor and Transco chief operating officer who had a passion for military strategy. (His doctoral thesis at the University of Houston was on supply and demand in the Vietnam War.) Lay, who was from Missouri and never succumbed-at least outwardly-to Texas brashness, had done well enough: Thanks to canny expansions, HNG's pipelines stretched from Florida to California and throughout the state of Texas.

HNG fended off Coastal, but to protect the company from other takeover attempts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska pipeline concern called InterNorth, one of the largest pipeline companies in the country at the time. Then, a funny thing happened: HNG started acting in a way that would characterize the company for years to come-a lot like Coastal. What the Nebraskans blithely labeled "the purchase" was being called "the merger" back in Houston, and before long, following some particularly brutal politicking between Omaha and Houston, the company's center of gravity started shifting toward Texas, and shortly after that, Ken Lay was running a new company called Enron. "Over time it became clear that Lay had a better vision of the future," says one person associated with Enron at that time. "He never fought change. He embraced change."

Lay had won, but what exactly did that mean? Enron was saddled with massive debt from the takeover attempt, and thanks to deregulation, no longer had exclusive use of its pipelines. Without new ideas-for that matter, a whole new business plan-the company could be finished before it really even got started.

LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling had spent a lot of time in the Midwest, and he was self-made-at fourteen he had been the chief production director at a start-up TV station in Aurora, Illinois. (His mother would drop him off there every day after school.) "I liked being successful when I was working, and I was smart," he told BusinessWeek earlier this year. But unlike many of his Enron colleagues, Skilling wasn't deliberate and soft-spoken and happy to go home at five o'clock; he was anxious and excitable, and nothing, but nothing excited him more than what he would come to call "intellectual capital." He loved being smart, and he loved being surrounded by smart people. He graduated from Southern Methodist University, went into banking-assets and liability management-and took on Harvard Business School, where he graduated in the top 5 percent of his class. Then Skilling took the next step on what was then the new, souped-up path to American success: He joined Manhattan's McKinsey and Company as a business consultant, and that is where Ken Lay found him in 1985.

It is often said of Lay that his instincts for hiring the best are flawless, and his choice of Skilling probably saved the company. Skilling was above all an expert at markets and how they worked. While everyone else was worrying about the gluts and the shortages that defined the gas industry, he alone saw the parallels between gas and other businesses. And so in a world where credit was nearly impossible to come by, Skilling came up with what he called the Gas Bank, which contractually guaranteed both the supply and the price of gas to a network of suppliers and consumers. Enron would not be a broker but a banker. It would buy and sell the gas itself and assume the risk involved. And Enron would make money on transactions, much like an investment bank would.

Skilling worked up some numbers and found them "absolutely compelling." Then the McKinsey consultant took the idea to a meeting of about 25 Enron executives. He had a one-page presentation. "Almost to a person," Skilling says, "they thought it was stupid." Almost. After Skilling left the meeting dejected, he walked Ken Lay to an elevator and apologized. Lay listened and then said, "Let's go."

The Gas Bank was not an overnight success. For months Skilling woke up in a cold sweat, sure he had ruined not only his career but the careers of dozens of colleagues who had assisted him. In fact, he had come upon one of those divides that seem to define his life: "I believed this whole world would be different, a huge breakthrough" is the way Skilling puts it today, and even if he is typically immodest, he was right. Fairly soon after launching, the company sold $800 million worth of gas in a week. True to Skilling's character, success turned out to be a matter of old versus new: He says the joke around Enron was that if a company's CEO was under fifty, "We were in." And he was in too: In 1990 Skilling finally left McKinsey and joined Enron as the head of Enron Finance Corporation, a new division created just for him. In 1991 that company closed a deal that earned $11 million in profit. After that, says Skilling, "we never looked back."

Skilling and Lay also realized that the Gas Bank couldn't work unless it had a trading component. Myriad trades were needed to build the market that would make the project go. But by buying and selling enormous quantities of gas, Enron not only constructed a market but almost instantly came to dominate it. The company had the best contacts, the best intelligence, and the best access to supplies. That, in turn, attracted more customers who wanted to be part of the play. With so many customers in its pocket, Enron could better predict the direction of the market and could use that knowledge to make trades for its own benefit-Enron could in effect bet on which way the price of gas would go, as one might do with pork bellies or soybeans, but with startling accuracy, thereby generating profits higher than anyone could have ever imagined.

THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had made: He created, within Enron, a new culture to match its new trading business. The idea was to build a "knowledge-based business," which demanded a skill set not exactly prized by Enron's employees from the old HNG days. Most were deliberate, cautious, responsible, somewhat defensive people, most of them men, of course-the kind of people you'd expect to find working in an industry regulated by the federal government. But now the company needed bolder people for its bold new era: that included anyone who wanted to make money-lots of money-for themselves and for the company. "Enron was going to create a niche for itself or die," one former executive explains. "The people who had narrow views eventually were forced out, because if they had narrow views about other things, they had narrow views about the market."

Skilling wanted smart people but not just any smart people. He wanted the smartest people from schools like Harvard, Stanford, and maybe, Rice. And because his firm was now acting more like a bank than a pipeline company, he wanted to draw from the pool of recruits that would be attracted to the biggest and best investment banks, like Merrill Lynch or Credit Suisse First Boston. In addition to being smart, Enron people were also supposed to be "aggressive." You were right for Enron if you didn't want to wait until you were thirty to close your own deals or move up in an organization.

You could see what he was looking for on "Super Saturdays" at the Houston headquarters: eight fifty-minute interviews with ten minute breaks in between-the company might herd as many as four hundred people through in just one day. They were scored from 1 to 5 on their smarts, their problem-solving ability, their passion for hard work, and what at Enron was called "a sense of urgency." People who scored less than 2.5 were scratched. The shrewdest candidates knew how to work Enron before they were even hired: These were the types that automatically turned down the company's first offer, knowing Enron would come back with more. The starting salary was around $80,000. Maybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more than enough for a lease on the obligatory Porsche Boxster or one of the lofts being renovated close to downtown. (Enron people didn't live in far-flung suburbs. Suburbs were uncool and too far from the office.)

For the lucky winners, Enron offered the corporate equivalent of a gifted-and-talented program. New associates learned the latest techniques for structuring energy deals, and there were rotations at Enron offices around the globe. The hours were long, but every possible need was taken care of. A company concierge handled all the things important people couldn't be bothered with: picking up dry cleaning or prescriptions, shining shoes, cleaning the house, planning a vacation. Of course, a lot of people who worked for Enron never got to take vacations-they were too busy making money-but they could use the company gym and the company's personal trainers. If they were overweight or wanted to quit smoking, they could join Enron's Wellness Program. Massages were offered six days a week, from seven in the morning until ten at night. "They were so cutting edge," rhapsodizes someone involved with the company health care program at the time. "They really thought about the psychology and what it took to keep these people going."

Skilling handed out titles analogous to those at Wall Street firms-analysts, associates, directors, and managing directors-but everyone knew that those titles didn't really matter. Money did. Instead of competitive salaries and decent bonuses, Enron offered competitive salaries and merit-based bonuses-with no cap. "If you really worked hard and delivered results, you could make a lot of money," says Ken Rice, who stayed with Enron for 21 years until resigning recently as the head of the company's faltering broadband division. Or, as the saying goes, you got to eat what you killed. Gas traders with two or three years of experience could wind up with a $1 million bonus. And the more you produced, the closer you got to Jeff: Real hot dogs joined him glacier hiking in Patagonia, Land Cruiser racing in Australia, or off-road motorcycling in a re-creation of the Baja 1,000 race, ending at a spectacular Mexican villa. "Every time he'd speak, I'd believe everything he'd say," one loyalist says.

And why not? By 1995 Enron had become North America's largest natural-gas merchant, controlling 20 percent of the market. But at a company where the buzzword was "aggressive," that was no place to stop: Skilling and Lay believed the Gas Bank model could easily be applied to the electricity business. Firmly committed to the notion that a deregulated market meant better service at lower prices for consumers (and untold profits for Enron), they began barnstorming the country, pressing their case with entrenched power company presidents (who, with their multimillion-dollar salaries and monopoly service areas, had little incentive to change) and energy regulators (who were somewhat more receptive, thanks in part to Enron's generous lobbying efforts).

But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay made him the president and chief operating officer of the company. By then, the division known as Enron Capital and Trade Resources was the nations largest wholesale buyer and seller of natural gas and electricity. The division had grown from two hundred to two thousand employees, and revenues from $2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil in the industry has convinced him that he is on the right track," the New York Times noted. Everyone would certainly have thought so: Enron and Skilling had totally transformed one industry and were well on their way to transforming another.

"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within," sang the New York Times in 1999. "In the staid world of regulated utilities and energy companies, Enron Corp is that gate-crashing Elvis," crowed Fortune in 2000. Wall Street was demanding tech-size growth on a tech timetable, and Enron, in 2000, obliged with second quarter earnings of $289 million, up 30 percent from the previous year. That year the company seemed to discover a market a minute: Under Skilling, Enron was trading coal, paper, steel, and even weather. No one blinked when a London wine bar became an Enron client. People drank more in warm weather than cold, so why not buy a hedge against the usual winter downturn?

But most exciting to the financial world was Enron's entry into high-tech communications. Because of the company's marketing dominance, EnronOnline became another overnight success, handling $335 billion in commodity trades online in 2000. Enron, as usual, made its money on the spread between the bid price and the asking price. Then there was the broadband business: To Enron, trading excess capacity in large, high-speed fiber-optic networks (empty lanes on the fabled information highway) wasn't that different from trading the capacity of natural gas pipelines. So Enron created a market for what the industry calls bandwidth. Soon after, it also announced a twenty-year deal with Blockbuster to deliver movies on demand electronically to people in their homes. Enron looked like a company that couldn't lose. "Its strategy of building businesses, shedding hard assets, and trading various commodities can help it do well even in an uncertain market," BusinessWeek insisted.

There was, however, another reason Enron did so well in such a short time: the company's hard-nosed approach toward its customers. The old notion of customer service was based on the long haul-you had to nurse and coddle customers to keep them. But Enron had new markets and new ideas-customers had to come to it. Over time, the company stopping referring to its business clients as customers and began calling them "counterparties."

Skilling wanted the biggest profits on the shortest timetable: Gains were maximized by creating, owning, and then abandoning a market before it became overtaxed and overregulated. So if you wanted to launch a high-risk venture quickly-such as Zilkha Energy's new high-tech approach to drilling for oil-you got your financing from Enron because a bank would take forever to underwrite the project, if it ever would. But because Enron invented its markets and subsequently dominated them, Enron could set the terms of its deals, from the timeline to the method of accounting to whether the deal happened at all.

While many businesses used what was known in the industry as "mark-to-market accounting," for instance, Enron used it on an unprecedented scale. The company priced their deals at current market value-but it was always Enron's idea of the market value; companies that balked at their pricing didn't get deals. And while old-fashioned companies spread their profits out like annuities over a period of years, Enron took most of its profit up-front. However many millions would be made on a deal that covered several years, they went on the books in the current year. If a few analysts thought there might be something fishy about what they called "subjective accounting," investors didn't particularly care as long as the profits rolled in. As the market fluctuated and the landscape changed, the company might abandon a project that had been in the works for months because its profit margins weren't going to be high enough. "Enron is known for leaving people at the altar," says one former employee. Winning the highest possible profits for the company could even extend to Enron's attitude toward charity. When a fundraiser for the Houston READ Commission, a literacy group, called on Enron for a contribution, it was suggested that he start raising money for Enron's competing literacy charity: "Even the person who was supposed to give money away for Enron was supposed to make money for Enron," he says.

As Enron became more and more successful, the culture Skilling had created took on a dark side: The competition turned inward. As one member of the Enron family put it, "It became a company full of mercenaries." The change started at the bottom. As Enron's domination of the energy market grew, most of the recruiting frills fell away. New associates were treated much like the commodities the company traded. Global Change's Enron spies reported overhearing orders like "I need a smart person-go buy me one" or "Buy me an intelligent slave, quick." Enron had never been the kind of place where people sang to you on your birthday, but now the workaholism bordered on self-parody: A Random Acts of Kindness program lasted only a few months. It was too disruptive. People couldn't get their work done.

And, of course, Enron had a program for institutionalizing creative tension. The Performance Review Committee, which had initially been installed by Skilling in the Capital group, became known as the harshest forced ranking system in the country. Employees were rated on a scale of one to five, and those with fives were usually gone within six months. (The PRC's nickname quickly became "rank and yank.") It was a point of pride that Skilling's division replaced 15 percent of its workforce every year. As one Skilling associate put it, "Jeff viewed this like turning over the inventory in a grocery store." Skilling's approach to business-get in and get out-had become Enron's attitude toward its workers. In time, it would become many workers' attitude toward the company. Teamwork, never that valuable in a trading culture, went the way of the eyeshade and the abacus. If protocol required an Enron higher-up to come from Europe to help with a project in the Third World, he might help-or he might not, depending on whether another, potentially more lucrative project was pending elsewhere.

Everyone felt the pressure to perform on a massive scale at massive speed: "They were so goal oriented toward immediate gratification that they lost sight of the future," says one former employee. Anyone who couldn't close deals within a quarter was punished with bad PRC scores, as were the higher-ups who had backed them. Past errors and old grudges were dredged up so often as new ammunition in PRC meetings that the phrase "No old tapes" became an Enron clich?. "People went from being geniuses to idiots overnight," says one former Enron executive.

In such a hothouse, paranoia flowered. New contracts contained highly restrictive confidentiality agreements about anything pertaining to the company. E-mail was monitored. A former executive routinely carried two laptops, one for the company and one for himself. People may have been rich at Enron, but they weren't necessarily happy. One recruiter described the culture this way: "They roll you over and slit your throat and watch your eyes while you bleed to death."

BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy company into the world's leading company, he had to make one more change: Just as he had done ten years before, Skilling had to purge the company of its remaining old order. Where Enron once prized cautious executives who dealt with tangible assets like pipelines, it now valued bold executives who dealt with intangible assets. Pipelines, power plants-they may have been Enron's pride, but Skilling wanted them gone. Expensive, long-term building projects had no place when Wall Street was devoted to quick profits and enormous returns on investment capital, and Skilling knew it. "It wasn't the time for long-term approaches," an Enron executive says of Wall Street's mood. "It was the technology era."

To rid Enron of the last vestiges of its past, Skilling had to take on Rebecca Mark, long considered his rival for the CEO's job. Mark was for many years the poster child for the Enron way: Young, attractive, aggressive-her nickname was Mark the Shark-she came from sturdy Midwestern stock but had the requisite Harvard MBA. Mark was largely responsible for the success of Enron International, the asset-heavy side of the company where she developed $20 billion worth of gas and power plants, which accounted for 40 percent of Enron's profits in 1998. For this she reaped breathtaking compensation-one Enron executive estimated $10 million-and adoring press clips, including two appearances on Fortune's list of the fifty most powerful women in corporate America.

But then Mark ran into trouble with a gas-fired power plant in Dabhol, India, one of the largest ever constructed. She had played the game the Enron way: Taking Enron into a new market, she had finagled low import taxes (20 percent instead of the usual 53) and hung in through 24 lawsuits and three changes in government. But the time and expense needed to make India and other Enron plants around the globe successful did not mesh with Enron's goals, and Skilling's impatience with Mark grew.

Forcing Mark out, however, was no easy matter. Key executives left, divisions were dismantled, but she remained. The truth was Enron didn't mind firing lower-level employees, but it hated to fire the kind of aggressive, relentless people it tended to promote. The company preferred humiliation-keeping a director in his cubicle, say, but failing to include him in the glamour deals, or kicking someone upstairs with a fancy title. (One particularly difficult executive won a few years at graduate school, gratis.) A company as smart as Enron could probably deduce too that dispatching one of the most visible businesswomen in the country would provoke a public-relations disaster. So Lay and Skilling did something classically Enronian: They gave Mark her own company. Despite Skilling's contempt for asset-heavy businesses, Enron spent more than $2 billion to buy a run-of-the-mill British water utility that could serve as Enron's entry into the emerging world of water privatization. Mark was put in charge of making Enron, yes, the world's greatest water company. Azurix, as the new business was called, looked like another sure thing: Its IPO in 1999 raised $695 million.

But Mark had to succeed on Enron's increasingly abbreviated timetable in a business fraught with political and emotional complexities. Water is not like gas or electricity-owners and governments are a lot less willing to give it up, even for lots of money. The company stumbled, layoffs commenced, and confidence evaporated. By August 2000 the stock price, which had started out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much diminished, was folded into Enron. "I think it's best for Rebecca to start afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal. Or as one critic put it, "They were more interested in destroying the old culture than running a business."

As 2000 drew to a close, Skilling was in total command. In December Ken Lay announced the inevitable: "The best time for the succession to occur is when the company is doing well," he told the press. "Enron is doing extremely well now." In February 2001 Jeff Skilling took over the CEO's job.

ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-power market made it an instant target in the California deregulation debacle. Both PBS's Frontline and the New York Times took on Enron, portraying the company as a heartless colossus that used its influence in Washington (Lay and Enron's political action committee are the top contributors to George W. Bush) to force old people on fixed incomes to choose between buying food or electricity. Skilling and Lay appeared on camera singing belligerent anthems to the free market, while another memorable scene juxtaposed one of the company's jackallike traders against a hapless state employee in California, as both tried to buy power online. The Times reported that Lay had tried to persuade a new federal commissioner to change his views on energy deregulation. The bad press was, to say the least, ironic: Just as the media was pounding Enron for its omnipotence, Wall Street was discovering its weaknesses. By late March the stock price had slid to $50 a share from $80 in January.

Within Enron, the asset-based divisions took the rap for the decline. (The India plant continued to be enormously costly, at least in part because of constant turnover within Enron's management team.) But the California situation was more visible and therefore more damaging, despite Enron's claim that the state had never built enough power plants to service its population and never properly managed those it had. "For three months Gray Davis did a very good job of blaming us," says Mark Palmer, a vice president for corporate communications. "We were a Texas company. There was a Texan in the White House. California was a state that didn't put him in office, and his biggest contributor was a Texas energy company. Performance is going to take care of our stock price. The truth will take care of Gray Davis." (California utilities still owe Enron $500 million, another reason stockholders might be panicky.) But more problematic than the crisis itself was Skilling's all too apparent lack of contrition. Facing down his critics, he cracked a joke comparing California with the Titanic. ("At least the Titanic went down with its lights on.")

But the biggest problem was Enron's telecommunications division, which had been responsible for at least one third of its heady stock price. Investors believed that Enron could revolutionize high-speed communications, just as it had revolutionized gas and power. Enron estimated the global market for buying and selling space over fiber-optic cable would grow from $155 billion in 2001 to $383 billion by 2004-but then the tech bubble burst. So too did the much-hyped movies-on-demand deal with Blockbuster. For the first time in its confoundingly successful life, Enron had nothing new to take to market. Like the popular high school girl who suddenly packs on a few pounds, Enron suddenly looked less alluring to Wall Street.

Skilling launched a campaign to keep Enron's most important cheerleaders, the stock analysts, in the tent, but he wasn't cut out to be a supplicant. During the reporting of first quarter profits, he called an analyst who challenged Enron's financial reporting an "asshole." When the company reported hefty second quarter profits, many analysts questioned whether those profits had come from the generation of new business or from the sale of old assets. Ignoring the growing chorus critical of Enron's accounting, Skilling promised, as he always had, that innovations were just around the corner. "There wasn't any positive news," Carol Coale, of Prudential Financial, says now. "Basically, he talked me out of a downgrade."

The business press, so generous in the past, turned surly. Fortune had asked in March whether Enron was overpriced. ("Start with a pretty straightforward question: How exactly does Enron make its money?") The routine cashing in of stock options that were about to expire by key executives was portrayed in the media as a fire sale. (Skilling had sold $33 million worth, Ken Lay and Ken Rice close to four times that amount.) Then the Wall Street Journal reported on a fund run by the CFO that had been a source of strife within the company. (It was essentially risk management against Enron's possible failures.) Every negative story seemed to produce a concurrent drop in the stock price: By late August it had fallen below $40. Enron, so institutionally unforgiving, finally got a taste of its own medicine. "When Wall Street is in love with a stock, they're forgiving of something like accounting," says Carol Coale. "When a company falls out of favor, all these issues carry more weight."

This fact was not lost on people inside the company, who suddenly started experiencing an attack of conscience. Those who had looked the other way as the most powerful Enron executives dumped their wives and married their secretaries or carried on flagrant interoffice affairs now saw the error of their ways. "It just created an attitude," one executive still at Enron says. "If senior people are doing that, why are we held to a higher standard? There was a real culture of 'We're above everyone else.'"

Loyalty had never been prized at Enron, so there was no reason to expect it now. An old-fashioned, slow-moving company like Exxon could demand hardship duty in Baku with the promise of greater rewards down the road. "But," as one Houston oilman explains, "if you have to negotiate a hardship duty with someone who doesn't have loyalty and has money, then you have a corporation that's better suited for good times than bad."

As it turned out, that description applied to Jeff Skilling too. As the stock price stubbornly refused to ascend, he made no secret of his unhappiness and frustration. Then, after a trip to visit the families of three employees killed at a plant in England, he had an epiphany: Life was short; for him, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named a new president, arranged a trip to New York to calm analysts and investors, and promised a kinder, gentler Enron in the future. Trading anything and everything was out. The company, Lay says, will still innovate but "innovate much closer to our core." As for the culture: "Things like the Performance Review Committee, I think we could have applied better. By trying to categorize people into so many different categories, you ended up creating a morale problem."

That Skilling's supposedly brilliant colleagues were as shocked at the news of his departure as the rest of the business community may be testament to their lack of emotional intelligence. Despite Skilling's lengthy tenure with Enron, he'd always been contemptuous of the long haul; he'd always believed in cutting losses and moving on. But now that he was abandoning them when the company was in trouble, it was different. "Even Jeff's biggest detractors wouldn't have wanted him to walk out the door," one loyalist admits.

But on the day we meet, Skilling is looking forward, not back. "Look," he says with finality, "ninety percent of my net worth is in Enron. Were my interests aligned with the shareholders? Absolutely."

Free of falling stock prices and shareholder pressures, he is nestling himself back into the world of ideas. His eyes flash as he talks about new technologies. "The first wave never gets it right," he says. "The stand-alone dot-coms didn't work, but the technological applications will create a second wave that will change the world." Houston, he promises, will become the world's center of commodity trading, and he intends to be a part of it. In fact, he is already shopping for office space.

"This is the second wave, and Enron's got it," he says, almost breathless. "There are thousands of people running around the streets of Houston that get it."