I left a voice mail message for Dave Delainey this morning asking for
clarification around the LNG business.  As soon as I hear back from him I
will let you know, and then based on that info we can decide on best next
steps.

Brent A Price
06/05/2000 09:18 PM
To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Re: LNG

The only conversation I have had with Jeff regarding this topic was when I
was in Houston and he had inquired as to when I was returning, stating that
he was going to need some help in integrating another business within Gas
Trading (and alluded to the possibility of it being Liquids related).  My
thoughts are that it would need to be supported out of my group since it is
going to roll up to Jeff.  Do you want me to set up a conference call with
you, Scott Earnest and myself to discuss?  Subsequent to that we should
probably have a conference call with Jeff to get specifics.  Let me know what
I need to do on this.

Brent

	Enron North America Corp.

	From:  Sally Beck                           06/05/2000 11:58 PM

To: Brent A Price/HOU/ECT@ECT
cc:
Subject: LNG

Scott Earnest announced in the staff meeting today that in a meeting he had
earlier today with Jeff Shankman and Vince Kaminiski that Jeff announced that
he had gotten the nod from Mark Frevert to manage the LNG book of business.
(This sentence structure is bad, but you get the drift.)  That is probably
what Shankman has alluded to in terms of increased responsibility.  I will
assume that is in addition to gas, but I don't know that for sure.

Scott has been working on setting up the risk books for LNG, working closely
over the last several weeks with Vince Kaminski.  We need to talk about this
business and the best way to support it.  Have you had any conversations with
Jeff on this?


PAUL Y'BARBO,

The PEP system closes on Friday, May 25, 2001.

Our records indicate that you have not selected reviewers.  Please suggest a list of reviewers as quickly as possible - the feedback process cannot begin until your list of reviewers has been reviewed and approved by your supervisor.

To suggest your reviewers, access PEP at http://pep.enron.com and select 'Suggest Reviewers' from the Main Menu.

If you have any questions regarding the PRC process or the PEP system, please contact the PEP Help Desk at:
Houston:  1.713.853.4777, Option 4 or email: perfmgmt@enron.com
London:  44.207.783.4040, Option 4 or email: pep.enquiries@enron.com


Please give me any feedback that you may have on Frank DeJesus per Sally's
memo below. Thanks for your response.

Sheila Walton
---------------------- Forwarded by Sheila Walton/HOU/ECT on 10/23/2000 02:53
PM ---------------------------

	Enron North America Corp.

	From:  Sally Beck                           10/18/2000 11:00 PM

To: Bob M Hall/NA/Enron@Enron, Leslie Reeves/HOU/ECT@ECT, Jeffrey C
Gossett/HOU/ECT@ECT, Stacey W White/HOU/ECT@ECT, Mary Solmonson/HOU/ECT@ECT,
James Scribner/Corp/Enron@Enron, Scott Mills/HOU/ECT@ECT, Sheri
Thomas/HOU/ECT@ECT, Shona Wilson/NA/Enron@Enron
cc: Sheila Walton/HOU/ECT@ECT
Subject: Input for Sheila Walton on HR Personnel

I believe that all of you have met Frank (whose last name I can't remember),
the HR generalist who is currently working with Hector to serve the HR needs
for Energy Operations in ENA.   Frank is working on a contract basis at this
time, and Sheila Walton is seeking feedback on his performance to date in
order to evaluate the duration of his work as a contractor and the
feasibility of bringing him in as an employee.  I have given Sheila my
feedback, but suggested to her that you may have had more contact with Frank
than I have had.  Please take the time to send Sheila an e:mail message or
voice mail to let her know what your experiences have been in working with
Frank.  Your input will be very valuable to Sheila.   Thanks for taking the
time to do this.


Home:
2702 Moonlight Bend
Austin, Texas  78703

Ganado:
P.O. Drawer A
Ganado, Texas  77962
512-771-3918


Are these two deals part of the original Conoco deal # 347356 that they are
extending or something different?  We need to know because we have to add
something in the confirmation if they are extensions of the original deal.
Also, is Jack Wells the contact for both?

Thanks!


Rob:

Thanks.  I will ask Janette to set up a call for you, me and Peter on the
guarantees.

Mark

	Rob Walls/ENRON@enronXgate
	02/21/2001 04:27 PM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc:
		 Subject: RE: Enron Corp. Parental Guarantees

Mark -

I think a call among the three of us would be a good place to start.  Let me
know if you would like Deb to set up the call.  Thanks.

 -----Original Message-----
From:  Haedicke, Mark
Sent: Wednesday, February 21, 2001 1:15 PM
To: Walls, Rob
Subject: Enron Corp. Parental Guarantees

Rob:  How can we get some relief on this issue?  Should we set up a call with
Peter and me?  There really is an earnings impact.   Let me know.

Regards,

Mark Haedicke
----- Forwarded by Mark E Haedicke/HOU/ECT on 02/21/2001 01:12 PM -----

	Peter Keohane 02/20/2001 10:35 AM 	   To: John J Lavorato/Corp/Enron, Mark E
Haedicke/HOU/ECT@ECT  cc: William S Bradford/HOU/ECT@ECT, Rob
Milnthorp/CAL/ECT@ECT, Derek Davies/CAL/ECT@ECT, Eric LeDain/CAL/ECT@ECT,
Russell Diamond/HOU/ECT@ECT  Subject: Enron Corp. Parental Guarantees

Lavo/Mark, although it has been a chronic problem, the seemingly inexcusable
delay at processing guarantees by Enron Corp. (both Enron Corp. and
Counterparty) seems to be getting worse of late.  It is becoming an
impediment to transacting and to our reputation in the market as the largest
and most responsive energy marketer.  As you know, our business is
essentially transacted off Enron Corp.'s credit, and procuring guarantees is
often unnecessarily difficult and time consuming.  I know that Commercial,
Credit and Legal are all frustrated by the process.  I know Bill is seeing if
there is something he can do, but I was wondering whether there was also
something you could do to speak to this issue in Houston.

Peter.


Denis:

I will initial the Security Agreement for you and have it executed.  Where do
you want the executed documents sent?

As you know, all of our master agreements (whether or not related to
structured deals) are logged into our Lotus Notes database to which London
has access.  Please provide me with a list and copies of the ISDA Master
Agreements (and/or related financial agreements) which have been executed by
London  in the name of ENA.  These agreements should also be logged onto the
ENA database.

Will these masters be assigned to Enron Credit Inc.?  Will all trades be
assigned?  If so, will you prepare the assignment for execution?

Thanks.

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

	Denis O'Connell
	02/27/2001 09:50 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Mark Taylor/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Brent
Hendry/NA/Enron@Enron, Carol St Clair/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT,
Tana Jones/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Stephanie
Panus/NA/Enron@Enron, Cheryl Nelson/NA/Enron@Enron, Mark
Greenberg/NA/Enron@ENRON, Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Francisco Pinto Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Anne C
Koehler/HOU/ECT@ECT, Tanya Rohauer/Enron@EnronXGate, Rod Nelson/LON/ECT@ECT
		 Subject: Re: R.V.I. Guaranty Co., Ltd., a Bermuda reinsurance company and
Continental Insurance Company

Sara - I did the ISDA with RVI. - This was a structured Credit Derivative
Trade so you will not find this on the system.

I have reviewed and approved the Security Agreement.

many tks

Denis

From: Sara Shackleton on 27/02/2001 09:43 CST
To: Mark Taylor/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Brent
Hendry/NA/Enron@Enron, Carol St Clair/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT,
Tana Jones/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron, Stephanie
Panus/NA/Enron@Enron, Cheryl Nelson/NA/Enron@Enron, Mark
Greenberg/NA/Enron@ENRON, Frank Sayre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Francisco Pinto Leite/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Anne C
Koehler/HOU/ECT@ECT, Denis O'Connell/LON/ECT@ECT
cc: Tanya Rohauer/Enron@EnronXGate, Rod Nelson/LON/ECT@ECT

Subject: R.V.I. Guaranty Co., Ltd., a Bermuda reinsurance company and
Continental Insurance Company

Is anyone familiar with an ISDA Master Agreement executed between ENA and the
above company?  I have received a Security Agreement executed by this party
seeking ENA's signature and the document references the Endorsement (to a
policy  - what policy?) issued to ENA on 10/19/00 which defines the ISDA
agreement.  This could be related to credit activity in London.  I am waiting
to hear from Jeff Kinneman and Denis O'Connell.

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


Have you sent our form of guaranty since we're wasting time reviewing several
different formats?  This should always be our first approach.  Also, you had
best advise the company that we will not provide an unlimited guaranty
(unless you've agreed otherwise). SS


Good Afternoon All!

Cheryl Nelson will be out of the office tomorrow, 10/18, from 9 am until 11 am for her wedding gown fitting.  She will be in the office early tomorrow and will return after the fitting.  If you should need immediate assistance, please feel free to contact me directly.  Thank you!

Kind Regards,
Keegan Farrell
EB3875
713-345-3317


Start Date: 4/13/01; HourAhead hour: 12;  No ancillary schedules awarded.
Variances detected.
Variances detected in Energy Import/Export schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041312.txt

---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 12 / Preferred:  20.00 / Final:  19.97)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/13/01
  TIE_POINT: FCORNR_5_PSUEDO
  INTERCHG_ID: EPMI_CISO_BUNNY
  ENGY_TYPE: FIRM


Over the last couple of years we have had numerous social events including
holiday parties, company-sponsored outings to Edgefield, post-quarterly
meeting outings, and going away parties.  While I hope that people thoroughly
enjoy themselves, I ask that you keep in mind that we all have to act
professionally and responsibly during and after these events.  I have been
working with Chris Calger and Amy Fitzpatrick to put together some guidelines
for company-sponsored social events:

The company will provide soft drinks, beer, and wine.  You may choose to
order other beverages at your expense.
Functions will run for a specified period of time.  If there is an open bar,
we will establish a time certain after which Enron will not pay for any
additional drinks.
If you require assisance getting home, please contact a taxi and submit the
fare for expense reimbursement with no questions asked.  The last thing in
the world we want is to have people break the law or put their safety and the
safety of others in jeopardy.

Let me know if you have any questions.  Thanks for your cooperation.


I believe this works.  I'm entering all sales to New Power at Broad Run on
deal 498019.  I created a purchase deal 498022 priced at FOM Index price.  We
should bookout these two deals.  The delivery to the citygate should be on
the big FOM deal ticket comingled with everything else.

11/17/2000 11:42 AM
Jeffrey Porter@EES
Jeffrey Porter@EES
Jeffrey Porter@EES
11/17/2000 11:42 AM
11/17/2000 11:42 AM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: NPC Purchases

Busy week while you were gone. Here is what I bought.

11/14-17   15,000/d   $5.83   TCOAP   DJenkins
11/15-20    30,000/d   $6.02   TCOAP   S.Hendrickson
11/17          4,108/d      $5.95   TGP/TCO Broadruncobb  DJ
11/18-20     4,108/d     $5.85    TGP/TCO Broadruncobb  DJ


Save the date note would be great if you can do that.  --Sally

"White, Cara" <CWhite@texas.usta.com> on 02/15/2001 10:36:29 AM
To: "'Sally.Beck@enron.com'" <Sally.Beck@enron.com>
cc: "'cwhite@viviance.com'" <cwhite@viviance.com>
Subject: RE: anniversary

Sally - HAPPY BIRTHDAY!!!!!!!!!!!!!   Sorry I missed your call last night; I
was walking with another prego from the office.

Your payment offer is very generous;  I"m sure we can work it out.  I have
no problem putting it on my card for now.  We have the go-ahead from Cindy,
too - so I think I will go ahead and confirm with Jeffrey's this week.  When
you come in next weekend, maybe we can all look at the sample menus, and get
that decided as well.

Maybe we should send a little "save the date" note to the cousins to let
them know?   I would be glad to do that.

Thanks for your input.   I bet I will talk with you later today, on your
special day!    -cara

> -----Original Message-----
> From: Sally.Beck@enron.com [SMTP:Sally.Beck@enron.com]
> Sent: Thursday, February 15, 2001 10:23 AM
> To: cwhite@viviance.com; CWhite@texas.usta.com
> Subject: RE: anniversary
>
>
> I think that this looks pretty good, and don't know if we could better the
> cost too much by looking around.  Cara, would you like for me to hold the
> reservation on my credit card?  Don't know how much baby stuff may be
> hitting yours, so I would be glad to do so.
>
> I am real comfortable with sharing the costs of this dinner, but don't
> necessarily feel that we have to split it in thirds.  This is a good year
> for me to cover a large portion of the cost - when we did the 40th
> anniversary party, David and I  were not in such good shape and I think
> that Cindy and Richard covered a lot of the costs.  Things ebb and flow -
> 2000 was a good year at Enron and this would be a good time for me to put
> some of my reward to good use.  --Sally
>
>
>
>
> "Cindy White" <cwhite@viviance.com> on 02/14/2001 05:56:20 PM
>
> To:   "Sister" <sally.beck@enron.com>, "White, Cara"
>       <CWhite@texas.usta.com>
> cc:
> Subject:  RE: anniversary
>
>
> Ok--being the one that probably doesn't really have the dollars to do this
> I
> would still say "yes"----will try to make room on a credit card for
> this--have until June so I think it is ok.....
>
> Will call the picture lady tomorrow and see what the price would be for
> that--will email you the results.
>
> Sista Cindy
>
>
> -----Original Message-----
> From: White, Cara [mailto:CWhite@texas.usta.com]
> Sent: Wednesday, February 14, 2001 3:35 PM
> To: 'cwhite@viviance.com'; 'sally.beck@enron.com'
> Subject: anniversary
>
>
> Hi, sistas-
>
> Here's the scoop on the Josephine House:
>
> We can reserve with just a credit card; no deposit required.
>
> Parties under 20:  $200 room fee.  $50 valet parking fee.
>
> I confirmed "17" with mom.
>
> Heidi sent some sample menus.   A 3-course menu (appetizer or salad,
> entree,
> dessert) is $45.
> A 4-course (same as 3-course plus hors d'oeuvres) sample menu is $52.
> Each menu could include a choice of three or four options per course.  The
> food sounds really good.
>
> So, here's a guess at cost:
> 17 people at $45 =   $765
> Beverages =          $200
> Gratuity =          $193
> Valet =             $  50
> Room rental =       $200
> TOTAL               $1408, or $469 per family if we divide it into
> thirds
>
> What do you guys think?   Should we explore other options - or just go
> with
> this?   I think Chris and I would be fine with this sort of cost - but
> probably couldn't go crazy with gift and decorations too.  So, if we
> really
> want to do the photo(s) - do we have a cost for these yet?, we may want to
> consider other options.    Thoughts?   -cara
>
> Cara White
> Community Development Coordinator
> USTA Texas Section
> 1-888-883-6388
> cWhite@texas.usta.com
>
>
>
>
>


Attached is my and Pete's attempt structural clarity... comments very welcome.


thanks.  Can you provide me with the appropriate signature block for ENA/ECT
Investments Inc. through the agent?

	Mahesh Lakhani
	10/04/2000 10:01 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Paul Simons/LON/ECT@ECT, John Greene/LON/ECT@ECT, Janine
Juggins/LON/ECT, Cindy Buckley/LON/ECT@ECT
		 Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

Sara.   It has been formed.  Enron Investment Services Ltd was set up on
3/10/00

Regards
Mahesh

Janine Juggins
04/10/2000 15:10
To: Sara Shackleton/HOU/ECT@ECT, Mahesh Lakhani/LON/ECT@ECT
cc: Paul Simons/LON/ECT@ECT, John Greene/LON/ECT@ECT

Subject: Re: U.K. arranger for ENA and ECT Investments, Inc.

Mahesh, please can you update Sara on the status (I think it has been formed,
but Mahesh will confirm)
Regards
Janine

From: Sara Shackleton on 04/10/2000 08:19 CDT
To: Janine Juggins/LON/ECT@ECT, Paul Simons/LON/ECT@ECT
cc: John Greene/LON/ECT@ECT

Subject: U.K.  arranger for ENA and ECT Investments, Inc.

Any word yet on creation of the new entity?  Sara


Please see the following articles:

GOVERNOR DAVIS SENDS LETTER TO SECRETARY OF ENERGY ABRAHAM
2/26/2001, www.governor.ca.gov

Pacific Gas & Electric Co. Makes Partial Payments to Suppliers
3/1/2001, bloomberg.net

Governor Davis Comes to Wall Street
3/1/2001,Merrill Lynch report

Energy Deal May Take a Month, Davis Tells Analysts

3/1/2001, LA Times

PUC chief says summer outages not inevitable
3/1/2001, Sac Bee

Dan Walters: Why has probe stopped short?
3/1/2001, Sac Bee

					PG&E's gas rates to ease in March
3/1/2001, Sac Bee

Davis optimistic about fed approval for power line deal
2/28/2001, San Diego Union Tribune

Partial Power Payments / Governor asks that generators take less
3/1/2001 SF Chronicle

PG&E May Be Ready To Deal / Lawyers to advise it on selling lines
3/1/2001 SF Chronicle

Generating Ideas / Deregulation, done right this time -- not state control --
is the answer to Calfiornia's energy woes
3/1/2001, SF Chronicle (editorial)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
--------------------
GOVERNOR GRAY DAVIS SENDS LETTER TO SECRETARY OF ENERGY ABRAHAM
2/28/1 15:25 (New York)

(The Following is a reproduction of a press release from The State of
California. This document was obtained from www.governor.ca.gov.)

GOVERNOR DAVIS SENDS LETTER TO SECRETARY OF ENERGY ABRAHAM

February 26, 2001

The Honorable Spencer Abraham
Secretary, U.S. Department of Energy
1000 Independence Avenue, SW
Washington, D.C. 20585

Re: Update on California's Energy Efforts

Dear Secretary Abraham:

The purpose of this letter is to update you on California's significant energy
conservation and efficiency efforts, as well as our generation development
initiatives.

Energy Conservation and Efficiency

Estimates by the California Energy Commission indicate that the State as a
whole
used approximately 2,000 fewer megawatts in January 2001 than might have been
expected, absent conservation and efficiency efforts. As you know, since
January, we have implemented the following major initiatives:

Directing more than $800 million for programs to improve conservation and
efficiency.

Implementing aggressive conservation measures in state buildings, resulting in
about 200 MW of savings during energy emergencies.

Developing a comprehensive outreach and education campaign to reach
businesses,
organizations, and millions of California consumers.

Partnering with other governmental entities, including school districts to
ensure that all 475 cities, 58 counties, and 8,300 schools in California
reduce
consumption.

Adopting the strongest energy efficiency standards in the world for
residential
and non-residential buildings and appliances.

Incorporating energy efficient, sustainable building designs in new state
building projects.

Issuing 13 Governor's Executive Orders on energy.

Additional State Conservation Outreach Efforts

The State Department of Consumer Affairs has launched the first stage of a $20
million paid media campaign to encourage California's consumers and businesses
to conserve energy and become more energy efficient. The first three
commercials
have run in all 12 major metropolitan markets, the most recent of which
encourages consumers to turn down their thermostats.
We are coordinating our conservation efforts with many businesses and business
associations. For example, Safeway agreed to print an energy conservation
message on its supermarket grocery bags. In addition, it will place an energy
conservation message in its weekly advertisement insert, which reaches 11
million households in every major California newspaper each week. Safeway also
has offered to donate 10 to 15 seconds on its advertising buys for the state
energy conservation message. In addition, McDonald's is placing four million
tray liners with the energy conservation message in its 1,100 restaurants
throughout the State.

The Department of Motor Vehicles (DMV) puts conservation and efficiency
messages
on Vehicle Registration and Driver's License Application and Renewal
envelopes.
DMV envelopes are expected to the reach 19.6 million vehicle owners and eight
million drivers who apply for or renew licenses this year.
The approaching tax season has enabled the Franchise Tax Board (FTB) to reach
nearly 300,000 Californians a week with the energy message. This past week
alone, FTB included an energy insert in nearly 24,000 Return Information
Notices, reached 71,000 visitors to the FTB home page, which features the
energy
conservation message, and played a recorded energy conservation message for
nearly 193,000 taxpayers who used the FTB call center.

The California Lottery Commission is placing conservation messages on certain
game tickets and on 7,000 television monitors in stores throughout the State.
The Department of Consumer Affairs, the Franchise Tax Board, California Energy
Commission, and other agencies play energy conservation information during on-
hold telephone messages.

The Department of Consumer Affairs reached an estimated 2.5 million
Californians
with the energy conservation and efficiency message during Consumer Protection
Week through public appearances, media interviews, handouts, and letters.

The Governor's Office of Planning and Research has worked with your Department
of Energy to get the conservation message to all federal employees and
facilities in California. These communications will reach as many as 265,000
civilian employees and 100,000 military personnel in California. Distribution
is
provided by the Department of Energy's Seattle Regional Office to key facility
managers and other federal offices throughout the state.

Every state agency website features the state's "Flex Your Power" logo and
energy conservation message. For example, the Energy Commission's home page
features in-depth conservation and efficiency information and receives 3
million
hits a month. The Energy Commission also has established an 800 number and web
form to handle consumer conservation ideas and inventions. This allows people
to
make suggestions directly to government.

Articles on energy conservation have been placed in trade publications and
newsletters, such as the Employment Development Department's California
Employer, which reached some 900,000 employers, and the CalPERS PERSpectives,
which reached one million subscribers.

The Technology, Trade, and Commerce Agency e-mailed and broadcast faxed an
energy conservation letter to approximately 97,000 businesses, associations,
and
partners.

The California Science Center, a state museum in Los Angeles that has 1.3
million visitors a year, including 800,000 children, is providing conservation
tips in English and Spanish to all visitors.

Two weeks ago, I issued an Executive Order that requires retail
establishments,
particularly shopping malls, gas stations, auto dealerships, and other
commercial properties, to reduce unnecessary outdoor lighting during non-
business hours. The Executive Order is directed at the large banks of
decorative
and marketing illumination that often stay on all night and do not serve a
public safety function.

Quantifying Impact of Outreach Efforts

The State and Consumer Services Agency is working with the Electricity
Oversight
Board, the California Energy Commission, the Department of General Services,
and
cabinet agencies to attempt to quantify the impact of our outreach efforts on
energy efficiency and conservation. Preliminary estimates for January 2001
indicate that the State experienced an overall reduction of approximately
2,000
megawatts from what the State's overall anticipated load should have been,
absent recent conservation and efficiency efforts. This estimate measured
overall impact by comparing monthly peak load data against data from the same
month one year earlier, while adjusting for projected load growth from last
year
to this year, significant changes in weather conditions, and other factors.

In addition, we are attempting to measure the overall impact of state agency
conservation efforts by gathering monthly utility bills of state buildings and
facilities and comparing them to the same month in 2000. Some preliminary
highlights include:

The DGS Telecommunications headquarters at 601 Sequoia Pacific Blvd.
(Sacramento) consumed 20.5% less kilowatt hours of electricity in January 2001
when compared with data from January 2000.

The Office of State Publishing facility at 344 N. 7th Street (Sacramento)
consumed 26.6% less kilowatt hours of electricity in January 2001 when
compared
with data from January 2000.

Caltrans indicated that the electricity bill for its Sacramento headquarters
went down 23.8% last month, compared with January 2000.
The Department of Housing and Community Development reports a 40.5% reduction
in
energy usage at its Sacramento headquarters building.

Generation Development Initiatives

Objective: 5,000 MW on line by July, and 20,000 MW by 2004.

Since August 2000, I have issued a series of Executive Orders and signed
urgency
legislation that created:

Fast-track licensing procedures for environmentally-preferred facilities; some
plants will be licensed in as little as 21 days

A State Air Emissions offset bank so fast track plants can obtain air permits
up
front.

Ability to increase power production at existing facilities and to allow
construction of plants 24/7.

ISO outage scheduling tools so shut downs occur while system reliability is
maintained

Intergovernmental "Green Team" strike force to cut red tape at federal, state
and local levels.

Performance awards for plants that accelerate construction and come on-line
before July, 2001.

I have requested that President Bush direct federal agencies to expedite
federal
permit reviews for power projects; President Bush granted this request.

I have written Chairman Hebert to urge the FERC to further extend the waiver
of
certain operating and efficiency restrictions on qualifying facilities from
April 30, 2001 until October 15, 2001; California awaits the Chairman's
response.

I anticipate that by July, 2001, these measures will result in the addition of
1,320 MW from three large power plants, a 320 MW plant licensed under
expedited
permitting procedure in December, 2000, up to 2,400 MW of "peaking" power
projects, up to 1,266 MW by restarting or expanding production at existing
thermal and renewable power projects - some of this production depends upon
the
FERC's response to my request, and 145 MW of wind, biomass and other renewable
energy projects receiving California financial incentives

California remains committed to achieving a significant reduction in energy
consumption and to an aggressive program to develop generation for this summer
and beyond.

Best regards,

Gray Davis
Governor

(bh) PN
-0- (CRL) Feb/28/2001 20:25 GMT
------------------------------------------------------------------------------
------------------------------------------------------------------------------
----
Pacific Gas & Electric Co. Makes Partial Payments to Suppliers
3/1/1 9:32 (New York)

Pacific Gas & Electric Co. Makes Partial Payments to Suppliers

     (For more on the California power crisis, see {EXTRA <GO>})

     New York, March 1 (Bloomberg) -- Pacific Gas & Electric Co.,
California's largest investor-owned utility, will make partial
payments of $228 million instead of $1.442 billion to its
suppliers, a filing with the Securities and Exchange Commission
said.
     Kent Harvey, a senior vice president and chief financial
officer at the utility, told investors in a Feb. 1 conference call
that the utility was paying power suppliers 15 percent of invoices
received. The company would rather ``make partial payments than no
payments at all, to keep electricity flowing to customers,'' he
said.
     The cash-strapped utility, which has defaulted on more than
$731 million of commercial paper since Jan. 17, is conserving
money in order to stave off filing for bankruptcy protection.
     Pacific Gas & Electric paid soaring wholesale energy prices
since last summer, which California regulators prohibited it from
passing on to customers. The utility accumulated $6.6 billion of
debt through the end of 2000 for such power purchases. The filing
didn't update the undercollections through January.
     Edison International's Southern California Edison, the
state's No. 2 utility, has said its unreimbursed costs were $5.47
billion through January 31. Sempra Energy's totaled $605 million.

                        Some Power Payments

     Pacific Gas and Electric's filing said it is making partial
payments for January power deliveries from certain suppliers,
known as qualifying facilities, and for December deliveries from
the California Independent System Operator, which oversees about
75 percent of the state's transmission grid.
     As of Jan. 16, the utility had drawn $938 million of a $1
billion credit line. On Jan. 17, banks refused to lend the utility
additional money causing it to default on maturing commercial
paper. The utility and its parent, PG&E Corp., have been shut out
of the commercial paper markets and unable to raise money from
sources other than banks since late December.
     Pacific Gas & Electric has an additional $142 million of
commercial paper maturing by the end of this month, according to
an audit ordered by the California Public Utilities Commission. It
recently had $1 billion of cash reserves, based on a Feb. 14 SEC
filing.
     California Governor Gray Davis has proposed buying the
utilities' transmission systems as part of a broader plan,
including buying power on their behalf, to help PG&E and Edison
avoid bankruptcy.

--Liz Goldenberg in the New York newsroom at (212) 893-3940 or at
egoldenberg2@bloomberg.net and Dennis Walters in Ojai, California,
through the New York newsroom (212) 318-2300 /jm

Story illustration: For more information on electricity markets
and prices, type {VOLT <GO>}.
------------------------------------------------------------------------------
--------------------------------------------------------------
Governor Davis Comes to Wall Street
3/1/1 9:47 (New York)

                      M E R R I L L  L Y N C H        Research Bulletin
  Fixed Income Research                               Reference Number
10906001
  United States                                       Mar/01/2001 09:47
  Leo J. Kelser                                       (1) 212 449-7803

Highlights of This Issue

Governor Gray Davis of California met with a group of sell-side and rating
agency analysts in New York yesterday.  The Governor outlined his plan for
restoring the utilities to financial viability so that they can meet their
obligations.  Below we summarize a few highlights from the meeting.

Trying to Fit Solution Within Existing Rate Structure

The Governor talked about the need to find a solution to the utilities'
problems within the context of their existing rate structures. He indicated
that the temporary 9% rate hike from January 2000 would be made permanent and
that a 10% rate reduction that went into effect in January 1998 would be
reversed in March 2002.

Status of Negotiations with PG&E

As we noted in a February 26(**th) comment, the Governor has reached an
agreement in principle with Southern California Edison (EIX: B3/CC) to address
that utility's past under-collections.  He hopes to also have an agreement
with
PG&E within the next 30 days, suggesting that progress was made in particular
in the last 2-3 days.  However, the Governor acknowledged that reaching an
agreement with PG&E was more difficult due to its larger under-collected
balance and lower rates compared with SCE.

Some Generators Agree to Haircut

The Governor indicated that a couple of unnamed generators have voluntarily
agreed to accept less than 100 cents on the dollar for their past due
receivables. When pressed about which parties they've had constructive
discussions with, he identified Williams (WMB: Baa2/BBB-), Enron (ENE:
Baa1/BBB+) and Dynegy (DYN: Baa2/BBB+).  We note that most of the generators
and marketers with exposure to California have established reserves against
possible losses.  Importantly, the Governor said that he hoped that the banks
and bondholders would not be asked to take a haircut.

Prospects for Legislation and Possibility of Ballot Initiative

The Governor said he is quite confident that he can reach an agreement with
the
utilities that the legislature can support.  Although he admitted that he
couldn't prevent someone from proposing a ballot initiative, the governor said
that in the end, the acid test with the public is how it affects their pocket
books.  Thus, if there is ultimately a ballot initiative, Governor Davis is
optimistic that the public will be supportive of his plan given the limited
impact on electric rates.

Status of Defaulted Utility Debt

As we have commented in the past, it appears unlikely that the resulting
legislation will pass with the required 2/3majority to go into effect
immediately.  Accordingly, there will be a several month lag before the
utilities receive any cash.  In response to a question, it appears that the
state will not step in to help the utilities pay off any maturing or defaulted
commercial paper.  But the Governor and his advisers hope that legislation
will
provide enough certainty so that the companies can get bridge financing.
Essentially, it appears the Governor is leaving it up to the utilities to find
the money from their banks.

Governor's Strategy to Keep the Lights On

The Governor stated that a key reason that deregulation failed in California
was that no new power plants were built in the state for over twelve years.
In
the intervening time, demand caught up with supply.  In response, he has
proposed various conservation initiatives and is trying to expedite the
construction of new power plants.  He set a goal of having 20,000 megawatts
(mws) of new supply on line by 2004.

In addition, the governor highlighted the need for additional investment in
the
transmission infrastructure.  In particular, he cited the need to expand the
capacity to import more power from Arizona as well to improve the ability to
move power from south to north within the state. He suggested that part of the
rationale for the state taking over the utilities' transmission grids was to
ensure that the additional investment takes place.  He also suggested that the
state would lease the transmission lines back to the utilities to allow them
to
continue to operate them.

In the meantime, the focus is to move away from California's over-reliance on
the spot market.  In that vein, Calpine (CPN: Ba1/BB+) yesterday announced the
signing of two long-term contracts with the state's Department of Water
Resources (DWR).  One of those contracts was to sell up to 1,000 mws over a
ten-
year term.  The other was to provide up to 495 mw of peaking capacity under a
20-year contract.  Earlier in February, CPN had reached agreement with the DWR
on a separate 10-year contract for an additional 1,000 mws.

(EIX, WMB)  MLPF&S was a manager of the most recent public offering of
securities of this company within the last three years.
Copyright 2001 Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S).
All rights reserved. Any unauthorized use or disclosure is prohibited. This
report has been prepared and issued by MLPF&S and/or one of its affiliates and
has been approved for publication in the United Kingdom by Merrill Lynch,
Pierce, Fenner & Smith Limited, which is regulated by SFA; has been considered
and distributed in Australia by Merrill Lynch Equities (Australia) Limited
(ACN
006 276 795), a licensed securities dealer under the Australian Corporations
Law; is distributed in Hong Kong by Merrill Lynch (Asia Pacific) Ltd, which is
regulated by the Hong Kong SFC; and is distributed in Singapore by Merrill
Lynch International Bank Ltd (Merchant Bank) and Merrill Lynch (Singapore) Pte
Ltd, which are regulated by the Monetary Authority of Singapore.  The
information herein was obtained from various sources; we do not guarantee its
accuracy or completeness. Additional information available.
Neither the information nor any opinion expressed constitutes an offer, or an
invitation to make an offer, to buy or sell any securities or any options,
futures or other derivatives related to such securities ("related
investments").  MLPF&S and its affiliates may trade for their own accounts as
odd-lot dealer, market maker, block positioner, specialist and/or arbitrageur
in any securities of this issuer(s) or in related investments, and may be on
the opposite side of public orders.  MLPF&S, its affiliates, directors,
officers, employees and employee benefit programs may have a long or short
position in any securities of this issuer(s) or in related investments. MLPF&S
or its affiliates may from time to time perform investment banking or other
services for, or solicit investment banking or other business from, any entity
mentioned in this report.
This research report is prepared for general circulation and is circulated for
general information only.  It does not have regard to the specific investment
objectives, financial situation and the particular needs of any specific
person
who may receive this report.  Investors should seek financial advice regarding
the appropriateness of investing in any securities or investment strategies
discussed or recommended in this report and should understand that statements
regarding future prospects may not be realized.  Investors should note that
income from such securities, if any, may fluctuate and that each security's
price or value may rise or fall. Accordingly, investors may receive back less
than originally invested.  Past performance is not necessarily a guide to
future performance.
The bonds of the company are traded over-the-counter.  Retail sales and/or
distribution of this report may be made only in states where these securities
are exempt from registration or have been qualified for sale. MLPF&S usually
makes a market in the bonds of this company.
Foreign currency rates of exchange may adversely affect the value, price or
income of any security or related investment mentioned in this report.  In
addition, investors in securities such as ADRs, whose values are influenced by
the currency of the underlying security, effectively assume currency risk.
 Provider ID: 10906001
-0- Mar/01/2001 14:47 GM
------------------------------------------------------------------------------
------------------------------------------------------------------------------
------
Thursday, March 1, 2001

Energy Deal May Take a Month, Davis Tells Analysts

Power: Wall Street experts appear cool to governor, who tries to convince
them he is solving the state's electricity crisis.
California members of Congress vow to keep seeking wholesale price caps.

By DAN MORAIN and RICHARD SIMON, Times Staff Writers

?????As a hopeful Gov. Gray Davis extended his East Coast barnstorming tour
before skeptical Wall Street utility analysts Wednesday,
 members of California's congressional delegation vowed to continue their
campaign for caps on wholesale electricity prices after a tense
 standoff with a top federal regulator.
?????Davis completed his five-day trip by raising about $200,000 for his 2002
reelection campaign at private events in Manhattan, and then
 conferring with analysts in an effort to persuade them that he is solving
California's energy crisis.
?????Although Davis delivered some good news--that some electricity suppliers
would accept less than the full payments owed to them by the
 state's debt-ridden utilities--he acknowledged that it probably would take
more than a month to complete his plan to enable the utilities to stave
 off bankruptcy.
?????"Did they leave without doubt? I don't know that is ever the case,"
Davis said of his select audience of 35 analysts. "But I do believe they left
thinking I'm sincere, I'm making progress, and am confident that I will fix
it."

?????Reaction Varies
?????Analysts who attended the hourlong meeting came away saying Davis
offered little that they didn't already know. Some questioned why he excluded
many analysts who closely track utility bond debt, given that Southern
California Edison and Pacific Gas & Electric Co. have defaulted
 on several bond payments.
?????Michael S. Worms, senior vice president of Gerard, Klauer & Mattison,
described Davis as "very cognizant of the situation," adding that the
governor appears to understand the fundamental problem that California lacks
sufficient power plants to supply the populace.
?????"I got the impression he is on top of it. He understands the issues,"
Worms said.
?????Others were far less charitable. Davis' lack of specificity added to
their skepticism.
?????"I'd like to see specifics," said Steven M. Fetter of Fitch Inc., which
rates companies' credit-worthiness. "I didn't expect specifics, and he lived
up to my expectations."
?????Davis told the analysts that some power generators have agreed to forgo
full payments from the utilities. State regulators have barred Edison
 and PG&E from passing on to consumers the skyrocketing wholesale power costs
charged by independent power generators and marketers, leaving the utilities
owing billions.
?????Davis spokesman Steve Maviglio confirmed Wednesday that two generators
made "unsolicited offers" to the governor to write off some of
 their debt. He did not identify the independent generators or say how much
they would trim from their debt.
?????Representatives of the energy companies that have sold more than $1
billion in electricity to the state since January reacted coolly to Davis'
suggestion that they not receive full payment for their goods.
?????"The best insurance against continued energy shortages is full payment
for all deliveries that have been made in the past," said Gary Ackerman
 of the Western Power Trading Forum, a group of energy marketers and
generators.
?????Davis last week said he and Edison had agreed to the outlines of a deal
by which the state would give the utility $2.76 billion in exchange for
its share of the statewide electricity transmission system.
?????At the time, he said he hoped to have a more detailed version of the
plan by the end of this week, as well as one to buy transmission lines
 from San Diego Gas & Electric.

?????Fund-Raising Events
?????However, on Wednesday, the governor said a final agreement between the
state and Edison will not be reached for as long as a month,
maybe longer. A deal with PG&E, the state's largest utility, "could take a
little longer," Davis said, adding that the company's debt is far larger
 than Edison's.
?????"This transaction is going to be scrutinized for decades to come," he
said. "I'm determined to do it fairly but do it in a way that withstands
scrutiny."
?????After conferring with Bush administration officials and attending a
governors conference in Washington, D.C., over the weekend, Davis
arrived in New York on Tuesday to be feted at a fund-raising dinner hosted by
Richard Medley, an economic strategy consultant and head of Medley Global
Advisors. On Wednesday, Davis attended a breakfast fund-raiser at the
headquarters of the banking and financial services firm Citigroup, whose
chairman, Sanford Weill, served as host.
?????The governor raised an estimated $200,000 in all for his 2002 reelection
campaign, a source said, requesting anonymity. Neither Medley
 nor Weill could be reached for comment. Both men are significant political
donors to national campaigns.
?????While Davis sought to make the case for his utility rescue plan, members
of California's congressional delegation focused on efforts to reduce
 the high wholesale power costs at the heart of the crisis. The bipartisan
group of lawmakers pledged to press ahead with legislation that would impose
temporary price caps, after they met behind closed doors with Curt Hebert
Jr., chairman of the Federal Energy Regulatory Commission. Hebert is a
free-market advocate and has vigorously opposed price controls.
?????"You heard me screaming?" asked Rep. Bob Filner (D-San Diego) after the
meeting with Hebert.
?????"Almost everyone argued with Mr. Hebert that we need help from FERC,"
said Rep. Henry A. Waxman (D-Los Angeles), citing Democratic
 and Republican support for temporary limits on wholesale prices. "Mr. Hebert
didn't care."
?????"It didn't make any difference whether you were a conservative
Republican or a liberal Democrat," Waxman said. "We all felt that we were
 not getting the help we need from the Federal Energy Regulatory Commission."
?????But Waxman said he considered the meeting worthwhile "because it had to
impress upon Mr. Hebert" the strong support for price controls shared by many
California lawmakers.
?????Several Republicans who attended the session were less critical of the
agency and its chairman but expressed support for providing a
legislative fix in the absence of FERC intervention.
?????"The chairman is not going to be supportive of our bill, but he's at
least willing to talk with us and listen to us," said Rep. Duncan Hunter
(R-Alpine)
?????So far, only about half the delegation has endorsed the price cap
legislation. Filner noted that he and his ideological opposite, Hunter, have
 found common ground on this issue after hearing from constituents squeezed
by higher fuel costs.
?????During the meeting, Hebert declined--on his attorney's advice--to take a
stand on Davis' proposal to have the state take control of the
electrical transmission system, according to some of those attending. The
takeover would require FERC approval, and Hebert reportedly
expressed concern about taking a position on a matter that his agency has not
yet considered.
?????Hebert bristled when a reporter, chasing him down a hallway, asked if
FERC were doing enough to help California.
?????"We've worked so hard on California that we have a backlog of 2,000
cases right now," he snapped, adding that Davis never asked to meet
 with him.
?????Asked if he was aware of talk that another chairman might be named, he
said, "You'd have to ask the president that."
?????In other developments Wednesday:
?????* California's electricity grid was jolted into a Stage 2 power
emergency after several large electricity plants tripped offline in the
morning.
The outages were not related to the Seattle earthquake, which had no
significant effect on regionwide electricity operations, a grid spokesman
 said.
?????* Millions of Californians would receive rebates of 10 cents for every
kilowatt-hour of electricity they conserve this summer, under legislation
introduced by state Sen. Don Perata (D-Alameda). The bill, SB 63X, would set
aside $1 billion to reward consumers who reduce their power
 use compared with that of the same month a year earlier.
?????* Calpine Corp. said it signed two more long-term electricity contracts
with the state Department of Water Resources valued at $8.3 billion.
?????* Southern California Gas Co. agreed to provide as much as 30 million
cubic feet of gas per day to PG&E in the next month to help ease the
utility's difficulties in obtaining supplies. Under the agreement, PG&E will
guarantee payment to the Los Angeles gas utility by pledging gas
accounts receivable as security for unpaid balances that cannot exceed $16.5
million. Gas Co. Chairman Edwin A. Guiles said the agreement
should have no adverse effects on natural gas costs or service for any of the
company's 5 million customers.
---
?????Times staff writers Nancy Rivera Brooks and Nicholas Riccardi in Los
Angeles, Miguel Bustillo and Nancy Vogel in Sacramento and Tim Reiterman in
San Francisco contributed to this story.
------------------------------------------------------------------------------
---------------------------------------------------------------
PUC chief says summer outages not inevitable
By Jim Sanders
Bee Capitol Bureau
(Published March 1, 2001)
California Public Utilities Commission President Loretta Lynch defended her
handling of the energy crisis in a speech Wednesday but made no promises that
blackouts won't occur this summer.
"We can probably dodge the bullet" if Californians reduce their electricity
use by 10 percent this summer, she said.
But the key will be Mother Nature. If temperatures soar far beyond a normal
year, she said, "We're going to have serious problems."
Gov. Gray Davis, meanwhile, sought to reassure stock analysts about
California's plans to cope with the crisis on a trip to New York, where he
outlined steps the state is taking to reach a deal to retire utilities'
debts.
But electric emergencies returned to plague California's grid, as imported
power from the Pacific Northwest dwindled.
After five days without issuing any power alerts, which warn that backup
electricity supplies have dipped too low, the Independent System
Operator declared a Stage 2 alert at 9:40 a.m. Wednesday. The warning was
scheduled to stay in place through midnight.
Unexpected power plant breakdowns and low imports triggered the alert, said
spokesman Patrick Dorinson.
California energy experts have predicted the state could be thousands of
megawatts of electricity short this summer, enough to leave millions of homes
without lights and air conditioning.
Lynch, who has been on the front lines as the state has spent billions of
dollars to keep the power on, declined to predict whether rates will rise
 to help solve California's electricity problems.
Rates will depend on many factors, she said, including the state's success in
securing long-term contracts at bargain rates, increasing power generation
and encouraging conservation.
Davis has vowed to keep rates "within the existing rate structure," but that
does not rule out ending a 10 percent rate freeze imposed several
 years ago or increasing rates for heavy energy users of debt-ridden Southern
California Edison and Pacific Gas and Electric Co.
Lynch said the state is on track to achieve stability in the electricity
industry through its proposal to buy 32,000 miles of power transmission
lines.
Lynch, a former campaign volunteer for Davis, was director of his Office of
Planning and Research before being named to the PUC in December 1999.
She started her speech Wednesday to the Sacramento Press Club with a
whimsical reference to the biblical character known for his suffering.
"I now understand what Job must have felt like," Lynch quipped.
She blamed the energy crisis largely on the fact that California's
electricity deregulation forced utilities to sell many of their power plants
and left
 them vulnerable when out-of-state generators failed to meet supply
expectations and wholesale prices soared.
"That lack of vision has come at an extraordinary price for California,"
Lynch said.
Asked what the PUC, in retrospect, could have done to avert the crisis, Lynch
pointed again to deregulation.
Officials should have seen that deregulation wasn't working, she said, and
either reversed it or re-evaluated it.
"From my perspective, the system we created was built on theory, hope and
promise," she said. "The promise was not realized because the
theory was faulty."
Deregulation of the industry did not lead to the heavy competition that was
predicted to provide ample supply and lower prices.
Lynch defended the PUC against criticism that it exacerbated the crisis by
reacting too slowly to requests that would have allowed utilities to
 raise rates and/or negotiate long-term energy contracts at lower-than-market
rates.
Lynch said the PUC has voted consistently since last August to allow the
utilities to enter into long-term power contracts.
"When the utilities asked, we gave them the authority -- and in some cases at
lightning speed," she said.
In recent legislative hearings, utility officials said the PUC's votes did
not solve their problems because the agency reserved the right to determine
 in years to come whether the contracts were reasonable. If the PUC
ultimately decided against the utilities, the officials said their
shareholders
 could be left holding the bag for large sums of money collected years prior
to the "reasonableness review."Thus, the utilities hesitated to enter
 into long-term pacts.
Lynch said her agency has a responsibility to protect consumer interests
regarding rate hikes.
"It was their business decision not to (negotiate long-term contracts)
fully," she said of Edison and PG&E.
Lynch also said the Federal Energy Regulatory Commission's actions in
December helped send electricity rates soaring 500 percent in five days.
Before FERC acted, she said, "the utilities were bleeding, but they weren't
hemorrhaging."
------------------------------------------------------------------------------
----------------------------------------------------------------

Dan Walters: Why has probe stopped short?

(Published March 1, 2001)
Earlier this year, as California's energy squeeze morphed into a full-blown
crisis, the state Assembly's leadership opened what it said would be
an in-depth investigation, modeled after the much-acclaimed probe of former
Insurance Commissioner Chuck Quackenbush.
A special subcommittee, chaired by Assemblyman Darrell Steinberg,
D-Sacramento, was established, investigators, many of them veterans of
 the Quackenbush probe, went to work, and a few days of hearings were
eventually held.
The reality didn't live up to the advance billing. Utility executives and
other players were grilled, but the hearings fell far short of laying out who
 made what decisions that brought the utilities to the edge of bankruptcy and
left California scrambling to find and pay for enough juice to keep
its lights burning. And then the hearings ended abruptly, the apparent victim
of a partisan conflict.
Republicans have been demanding a deeper inquiry into what the Public
Utilities Commission, and inferentially Gov. Gray Davis, did or not do
 last summer when the crisis first began to make itself felt. And their
partisan interest is also clear: Pinning the crisis on Davis and the PUC would
 be ammunition for the 2002 election, when Davis is seeking re-election.
Democrats want to move into aspects of the energy crisis, such as
shortages of natural gas and the electricity supply prospects for next
summer, that would not expose the governor or the PUC to any
 embarrassing revelations.
Steinberg insists that he's not trying to protect Davis. But only this week,
after Republicans exerted behind-the-scenes pressure, did he send
 a letter to the PUC backing the GOP demand for extensive access to critical
documents and interviews of key participants in last summer's
 actions.
Utilities executives say they pleaded with the PUC and Davis last summer to
acquire long-term, low-cost contracts with suppliers, but that they
 were rebuffed. The issue is critical, because the lack of long-term
contracts meant that utilities ran up many billions of dollars in debts to
pay for
 power at soaring spot market prices -- a form of deficit financing that the
state is continuing. How much of that debt should be eaten by utilities,
 and how much should be recovered from ratepayers is, perhaps, the single
most controversial aspect of the crisis.
The touchiness of the issue was underscored Wednesday when PUC president
Loretta Lynch appeared before the Sacramento Press Club and
 dismissed as "one of the biggest myths" and "a tremendous canard" the
allegation that the PUC had blocked long-term supply contracting. She
 said the PUC had granted long-term contracting authority to the utilities,
but they allege that the permission came with too many financial strings
 to be practical.
Lynch also denied that the PUC has dragged its feet in responding to demands
for documents, citing the overwhelming volume of both the
 demands and the inquiries from several legislative committees. Earlier last
month, PUC executive director Wesley Franklin complained in one
response to legislators that the demanded documents "may include confidential
information" and complying with the requests would "entail
considerable time and effort for us to compile ... "
Whether the legislative hearings ever return to last summer's events is
uncertain. The Republicans' partisan motives aside, however, it is important
 to establish what role Davis and the PUC played so that the public can judge
any Davis-brokered settlement of the utilities' debts. It's also an
 important test for Assembly Speaker Bob Hertzberg, who is very proud of the
investigation of Republican Quackenbush and has pledged that
 other official shortcomings would be ruthlessly examined regardless of their
partisan origin.
DAN WALTERS' column appears daily, except Saturday. Mail: P.O. Box 15779,
Sacramento, CA 95852; phone (916) 321-1195;
 fax: (781) 846-8350
E-mail: dwalters@sacbee.com
Recent columns: http://www.capitolalert.com/voices/index_walters.html
------------------------------------------------------------------------------
-----------------------------------------------------------------

Newswatch: PG&E's gas rates to ease in March

(Published March 1, 2001)

Rates for natural gas will inch down in March but will remain more than twice
as high as a year ago, Pacific Gas and Electric
 Co. said Wednesday.
Household gas bills will average $95 this month, up from $45 in March 2000,
but down from this winter's high of $125 in
January, the utility said.
Gas rates are high nationwide as the result of years of reduced exploration
while prices were low. But they have been far
higher in California and various analysts have suggested a range of reasons:
pipeline and storage shortages; soaring
demand by power plants; and market manipulation.
PG&E figures a different rate each month, based on how much it expects to
spend buying gas for households and small businesses. Large businesses are
responsible for lining up their own supplies.
An average March household bill will be about 16 percent lower than an
average February bill, which PG&E calculated at
$113.
-- Carrie Peyton
------------------------------------------------------------------------------
-------------------------------------------------------------

Davis optimistic about fed approval for power line deal

ASSOCIATED PRESS
February 28, 2001
WASHINGTON ) California Gov. Gray Davis is hopeful federal energy officials
will back a proposal aimed at easing the state's energy crisis by purchasing
a wide swath of transmission lines.
While the Davis administration continued negotiations with three
investor-owned utilities Wednesday, the state's weeklong respite from power
alerts came to an end.
Four Western power plants shut down unexpectedly, prompting grid officials to
call a Stage 2 alert with electricity reserves expected to drop below 5
percent, said spokeswoman Lorie O'Donley of the California Independent System
Operator. The plants included two in Montana and one each in Oregon and
Northern California.
In addition, several California plants were down for scheduled repairs,
O'Donley said.
The state has been besieged with electricity problems in recent months. They
include the near-bankruptcy of Southern California Edison and Pacific Gas and
Electric Co. and a lack of power that resulted in rolling blackouts twice
last month in Northern California.
On Friday, the governor announced a deal to purchase Edison's power lines and
require Edison International, the utility's parent company, to sell cheap
power to the state for a decade.
Davis gave the Edison proposal to Energy Secretary Spencer Abraham on Tuesday
and expects a response by the end of the week.
Abraham "wants this problem solved and he's been very supportive," Davis
said. "He's recommended approval on every request I've made, and I believe he
will support our proposal."
Supporters say the $2.7 billion plan to buy Edison's transmission system and
have the state spend several billion more to buy the power lines of its other
two investor-owned utilities, could lead to quick improvements to a
bottlenecked system overdue for repairs. Critics contend it would saddle the
state with an antiquated network that could prove costly to fix.
The Davis administration continues negotiating with PG&E and San Diego Gas &
Electric. In all, Davis' plan would put 26,000 miles of power lines under
state control at a total price that could range from $4.5 billion to $7
billion.
Edison officials said Tuesday they would prefer a deal that includes all
three utilities, but might agree to sell Edison's transmission lines alone as
long as it is not held responsible for any of PG&E's debts.
As a member of the California Power Exchange, Edison agreed to pay a share of
any default by any other member.
A group of power generators have sued the exchange because they were charged
a portion of the debt owed by Edison and PG&E. That lawsuit is on hold while
the issue is being decided by the Federal Energy Regulatory Commission.
"Clearly it is simpler and a lot cleaner if all three utilities are
ultimately a party to some sort of agreement with the state," Ted Craver,
chief financial officer of Edison International, said during a conference
call with creditors. "It's not necessarily the only way it can be done."
The governor feels the state won't "have a satisfactory arrangement without
having 60 percents of the transmission lines and that requires that we have
an agreement with PG&E," spokesman Roger Salazar said.
Edison and PG&E say they have accumulated nearly $13 billion in losses
because the state's 1996 deregulation law prevented them from passing the
true costs of wholesale energy ) which have soared since last June ) to their
customers.
The governor's plan would infuse the utilities with part of the cash they say
they need to remain solvent.
Some state lawmakers have said the long-term costs of the plan outweigh the
immediate benefits because the transmission lines need repairs that could
cost an estimated $1 billion a year.
Assembly Minority Leader Bill Campbell, R-Villa Park, said Republican
lawmakers are unlikely to support the governor's plan, which needs
legislative approval.
Without Republican support, the measure could still pass, but it would take
effect 90 days after the governor signed it, rather than immediately.
"That's a hurdle, waiting 90 days in these delicate times," Campbell said.
Addressing a lunch for the California State Society attended by members of
the state's congressional delegation, Davis outlined his plans to resolve the
energy crisis, in part by speeding up power plant construction.
"We have a real challenge this summer and the following summer," he said.
"The third year I think enough generation will be online so that we're in
much better shape."
Davis has issued executive orders to shorten the approval process for new
plants and expects to gain 5,000 megawatts by summer ) enough to power about
5 million homes.
In addition to increasing power production, Davis emphasized the need for
greater conservation, advising his state's consumers to turn off lights in
empty rooms, unplug unused appliances and lower thermostats.
"In my house, my wife has the thermostat down to 55 degrees," he said. "Going
to the kitchen in the middle of the night is like a trip to Antarctica."
??

On the Net:
California Energy Commission: www.energy.ca.gov
U.S. Department of Energy: www.energy.gov
California Independent System Operator: www.caiso.com
------------------------------------------------------------------------------
---------------------------------------------------
BUSINESS
Partial Power Payments / Governor asks that generators take less
Christian Berthelsen
?
03/01/2001
The San Francisco Chronicle
FINAL
Page B1
(Copyright 2001)
California Gov. Gray Davis yesterday suggested that power generators accept
partial payment for the electricity they have supplied to the state's
financially troubled utilities.
Analysts at the meeting said the governor made reference to a company that
had agreed to do so. However, he did not identify the company or offer
details about how much it would accept.
Davis' comments at a closed meeting with analysts in New York City are
significant because they represent an apparent departure from the power
companies' position that they be repaid in full.
The move is in line with the governor's view that the generating companies
selling electricity to California 's utilities should contribute "modestly
and voluntarily" to solving the crisis.
Said Richard Cortwright, an analyst for Standard & Poors: "It came across
pretty loud and clear that he felt they could afford to take less than a
hundred cents on the dollar and still do pretty well for themselves."
Several power companies, including Enron Corp. and Reliant, both of Houston,
were quoted by Bloomberg News as saying they were surprised by the governor's
statements.
Davis went to Wall Street yesterday for the first time during the California
power crisis to reassure the financial world's opinion- makers he is doing
all he can to resolve the problem.
During the meeting, Davis presented a history of how California 's
investor-owned utilities came to be in the sorry financial shape they are in.
He was also said to have emphatically ruled out electricity rate increases,
saying they are politically unfeasible and would be easily undone by a voter
initiative.
Davis also said he will have a deal within 30 days to purchase transmission
lines from Pacific Gas & Electric Co. and Southern California Edison.
Financial analysts are looking forward to that deal as a way of providing the
utilities with some cash to work their way out from under a combined debt
load estimated at $13 billion. The utilities have been barred by law from
passing high wholesale power costs on to customers.
At a press conference after the meeting, Davis told reporters that
negotiations are improving between the state and PG&E for a deal similar to
the one announced with Edison last week. In that transaction, the state would
buy Edison's power lines for $2.76 billion, and Edison would issue bonds to
recover its wholesale power costs.
Yesterday's meeting was closed to the media and investors, and no Internet
broadcast or teleconference of the event was available. That frustrated some
investors and analysts who had hoped for greater access -- particularly
bondholders of the two utilities, who have the greatest power to push the
utilities into bankruptcy if they decide to do so.
But a transcript of the session was being prepared yesterday and is expected
to be made available this morning on the governor's Web site,
governor.ca.gov.
Analysts who attended the meeting said the Davis visit was productive, though
not likely to produce any immediate change in equity recommendations or bond
ratings.
"There wasn't any news that's new," said Dave Hitchcock, director of Standard
& Poor's state and local government group. "He reiterated he expects an
agreement with PG&E in 30 days. So we have a date we can watch."
Indeed, there appeared to be little immediate reaction in the market during
the 45 minutes or so of trading that was left after the meeting broke.
Trading volume for PG&E remained under 25,000 shares, and the stock closed at
$13.96, down 9 cents.
Trading was heavier in Edison shares, which ended the day down 4 cents at
$14.90. Both stocks are trading at around half of their 52- week highs.
------------------------------------------------------------------------------
------------------------------------------------------------------
BUSINESS
PG&E May Be Ready To Deal / Lawyers to advise it on selling lines
David Lazarus
?
03/01/2001
The San Francisco Chronicle
FINAL
Page B1
(Copyright 2001)
Pacific Gas and Electric Co. has retained outside counsel to advise it on
selling its transmission lines to the state, The Chronicle has learned.
The move represents a potential breakthrough in the stalemated talks between
PG&E and representatives of Gov. Gray Davis on California 's plan to buy the
utility's power lines for perhaps more than $7 billion.
Southern California Edison already has voiced willingness to part with its
transmission lines. But sources familiar with the negotiations said PG&E has
remained largely inflexible, insisting that its lines are not for sale.
That stance could be changing.
According to an internal memo sent to some PG&E employees this week, the
utility is bringing in attorneys from an unspecified law firm to offer
guidance on a potential sale of assets.
"The company has hired a law firm to help deal with a possible purchase of
the electric transmission system by the state, as proposed by Gov. Davis as
part of a deal to resolve the utility debt problem," the memo said.
It added: "Don't read anything into this regarding an agreement by PG&E to
sell or not to sell."
Ron Low, a PG&E spokesman, refused to confirm the contents of the memo or
even that such a memo was issued.
Choosing his words carefully, Low said: "We are not aware of the alleged
memo. We cannot speculate on a memo we have not seen." He said he was
speaking on behalf of the public relations department.
Asked whether outside counsel had been retained, Low said, "It would be
inappropriate to comment on ongoing discussions with the governor."
Nevertheless, sources within the utility said the new lawyers are being given
workstations in PG&E's land department, where records of real estate holdings
are kept.
The sources interpreted this as a sign that the utility is eager to place a
higher value on its assets -- almost certainly more than the governor has
offered so far.
Edison already has agreed to sell its power lines for $2.76 billion, which is
about 2.3 times book value, or the value placed on the system for accounting
purposes.
If PG&E were to accept a similar premium on its lines, the sale price would
be $7.2 billion.
Sources within the utility said that if a deal is reached, it will likely be
for above this amount. The new lawyers, presumably, are intended to help PG&E
drive a harder bargain.
"They're trying to play hardball, but I'll bet they submit," said Richard
Bilas, who sits on the California Public Utilities Commission. "Getting more
than two times book value doesn't sound like a bad deal."
The governor told Wall Street analysts in New York yesterday that the
negotiations with PG&E could last another month.
On Tuesday, he said U.S. Energy Secretary Spencer Abraham is open to
California 's buying the utilities' power networks. Federal approval is
necessary for the plan to work.
The Bush administration and federal regulators have been less forthcoming,
however. Privately, they have expressed skepticism about a public entity's
taking over private energy assets.
California is hoping to return the state's cash-strapped utilities to
solvency by handing over billions of dollars in return for hard assets. PG&E
and Edison have racked up nearly $13 billion in debt as a result of the
state's bungled efforts to deregulate electricity prices.
Sources familiar with the talks said Edison's parent company, Edison
International, appears eager to get out of the utility business, while PG&E's
parent, PG&E Corp., would prefer to remain a player in the industry.
"The companies are structured differently," said the PUC's Bilas. "I believe
Edison has a much broader operation than PG&E."
------------------------------------------------------------------------------
------------------------------------------------------------------
EDITORIAL
OPEN FORUM
Generating Ideas / Deregulation, done right this time -- not state control --
is the answer to Calfiornia's energy woes
Kenneth L. Lay
?
03/01/2001
The San Francisco Chronicle
FINAL
Page A23
(Copyright 2001)
BLACKOUTS, skyrocketing electricity prices and the threat of bankruptcy of
two large utilities must mean the failure of deregulation, right?
No, it's not right.
What has happened in California over the past four years is not deregulation.
It is misguided regulation.
Deregulation does not mean eliminating customer choice and competition for
most customers. Deregulation does not mean limiting new market entrants.
Fewer than five percent of customers in California are served by competing
suppliers.
Deregulation does not mean creating a single central power pool from which
all participants must buy and sell their wholesale power; the state Power
Exchange effectively replaced three monopoly buyers with one monopoly buyer.
Deregulation does not mean buying all of your commodity at the last minute,
on the spot market, rather than planning ahead and purchasing most of the
power under long-term contracts that lock in prices.
The situation in California is the result of continued regulation,
complicated by a series of natural and man-made factors.
In the past two years, California has enjoyed an economic boom fueled by a
burgeoning technology industry. Since 1995, demand for electricity in
California has grown by 5,500 megawatts. Supply, on the other hand, has not
kept pace.
California was clearly headed for major problems when nature pushed it over
the edge. November and December 1999 were the warmest in the previous 100
years. Those same months in 2000 were the coldest in the last century. Add a
sharply reduced snowpack that has dried up hydro sources from Northern
California and the Pacific Northwest. Add tight gas supplies across the
country, and you have an electricity supply problem in the West and an
electricity supply crisis in California .
The problem in California 's energy market is simple: There is too little
supply and too much demand. As a result, every potential solution must
address either or both of those factors, and the test for any proposal must
be: Does it increase supply? Does it decrease demand?
California desperately needs new generation. While Enron and other companies
have built peaker generation facilities in as little as 10 months in other
states, it takes years to construct a power plant in California .
The state also suffers from a congested transmission system, which prevents
the delivery of power to where it is needed. California needs quicker siting
for power plants and expanded transmission facilities.
California also needs real-time pricing -- pricing that reflects the
difference in the cost of providing electricity at peak periods as compared
to non-peak periods.
As a country, we're power hungry. Virtually all of our daily amenities are
fueled by electricity. We flip switches and use electricity anytime we want,
with no thought to the cost at a given moment.
But if customers, particularly large commercial and industrial customers,
received real-time price signals, they'd know how much they were paying for
electricity at any given time. This would encourage conservation or shifting
usage to off-peak times to reduce electric bills.
This would also spread California 's scarce electricity supplies over more
users (including those residential customers who don't have the flexibility
to reduce or shift demand) and reduce the risk of rotating blackouts.
A complementary demand-side solution would be to purchase demand reductions.
If utilities or the state are willing to pay $75 for a megawatt hour, they
ought to be willing to pay $75 for a "negawatt" hour.
This would free up still additional megawatts to meet peak demand.
Blackouts are not voluntary, but by giving customers incentives to reduce
demand, the choice is theirs, and the result is less disruption to business
and the economy.
Customer choice is absolutely essential in creating a competitive market and
in allowing consumers to realize the benefits of competition.
Just ask utility customers in San Diego, whose supplier purchased most of its
power on the spot market. When prices jumped, those hikes were passed along
to the consumer. The only customers who were protected were those who chose
alternative suppliers like Enron and had locked in a price, thus avoiding the
sharp price increases.
California needs to rely less on the spot market. A balanced portfolio of
short- and long-term purchases by customers would sharply reduce
Californian's exposure to volatile prices and would bring down prices in the
near term.
California needs to restore the creditworthiness of the utilities, which is
necessary to attract new generation and long-term supply commitments. The
state has made a significant first step by allowing the state Department of
Water Resources to purchase power on behalf of the utilities.
In a crisis, it is equally important to understand what won't work.
We cannot afford to waste time on things that don't work or make matters
worse. California does not need state control of the power business.
There is no reason to believe -- and every reason to doubt -- that government
will do a better job than private firms in rapidly constructing new
facilities and operating them efficiently. In every other developed nation,
governments are getting out of the power business, not trying to get in it.
What California does not need is price caps, which don't work because they
neither increase supply nor decrease demand. In fact, they worsen the
situation. Price caps discourage investment in the development of new
generation.
When the state imposed price caps last October, companies such as Enron were
forced to cancel plans for more than 1,000 megawatts of peaking generation
that would have been online by this summer. Peaking plants are designed to
run fewer than 30 days a year -- only on days when supplies are tight. And if
price caps are in place, companies cannot recover their capital investment.
Price caps also discourage conservation and sales of power into the state
from power plants in other states.
If done right, deregulation means choice and competition. Deregulation means
lower prices. Deregulation means innovation. California has the opportunity
now to get it right.

GRAPHIC; Caption: PAUL LACHINE/Special to The Chronicle


Notes from Bryson conversation with Ken Lay:

Urged us to "stay at the table".

Says teams in Washington have all the demand curves from the utilities (from
which to calculate offering prices).

QF meeting starts at 7:00 pm tonight.
says average cost of QFs today is 15?/kwh (amounts to 30% of supply).
believes that cost can be brought down significantly if gas is purchased
forward (perhaps by state entity).

Says all utility generation (another 30%), mostly hydro and nuclear is cost
based at  4?/kwh.

If suppliers come in at 5.5? (or even 6?), there is room under the 7? new
commodity rate component to recover securitized costs (amounts to about 40%
of SCE supply).

Says good progress was made today.  Believes they may have a framework this
evening.

Believes 5.5? is causing problem; maybe room to squeeze it up (perhaps as
high as 6.0?).

Thinks governor will slightly increase rates (or pay more at government
facilities) if the parties can get 97% of the way to a solution.

Thinks it's nearly a "done deal" that DWR (state entity) will buy power.

Says securitization may be harder to get.

Bryson's questions to Ken (and Ken's to us):  Are we willing to forbear
payment of amounts owed to us and continue to sell power to the utilities
over the next several weeks.  Ken realizes that Bryson may be overstating the
progress made, and made no commitments to Bryson.

Let's discuss at 10:30 call tomorrow.


Jonathan, Ned,

Enron Europe Limited would be fine, thanks.

And a couple of other questions, which blend with the ones I mentioned below.

has there been issued any statement by the CFTC or other regulatory body
regarding the point about marketing via the Internet not infringing 30/10
relief, i.e without breaching the limited marketing rules?  Can LME Contracts
therefore be marketed via the EnronOnline website to US customers, bearing in
mind that the underlying principal to the LME Contract would (so far as
EnronOnline is concerned) be Enron Metals Limited (formerly known as MGL)?
As an aside, each Counterparty that is given access to the EnronOnline system
is required to execute certain "access" documentation - for the US, the Enron
entity to these documents is EnronOnline LLC, and for Europe, the entity is
Enron Power Operations Limited.  In each case, EnronOnline LLC and Enron
Power Operations Limited execute these documents on behalf of themselves as
well as their group undertakings.  But note that no cases will EnronOnline
LLC or  Enron Power Operations Limited be the Enron contracting entity to any
trade concluded via EnronOnline.
is MG London Inc. (the FCM) required to act as agent or as principal under
the LME Contracts with US customers, or can it merely market to US customers
and then pass these on to Enron Metals Limited in London for execution,
whether offlline or via EnronOnline?

Thanks.
Justin

	Enron Capital & Trade Resources Corp.

	From:  "Jonathan Melrose" <Jonathan.Melrose@simmons-simmons.com>
             12/09/2000 13:37

To: <Justin.Boyd@enron.com>
cc: "Ned Swan" <Ned.Swan@simmons-simmons.com>

Subject: Re: Action points for Simmons & Simmons

Thanks - will look at these and revert.

On a house keeping point, is this work for Enron Metals or a different Enron
entity?

Rgds
>>> <Justin.Boyd@enron.com> 12/09/2000 11:39:34 >>>
Dear Jonathan,

Following our conference call yesterday, I hope these action points for you
make sense:-

   Determine the scope of the 30/10 exemption, assuming it was granted to
   MGL in 1988 and confirm the benefit to MGL of changes to CFTC Rules
   since then.

   Determine the scope of the FCM authorisation granted to MG London Inc.

   Provide details of the requirements for the purpose of 30/10 and FCM
   authorisation in terms of customer warnings/documentation required to be
   given.

   Confirm alternative bases for relief under 30/10 and FCM authorisation.

   Confirm that MG London Inc. (as an FCM) may market to US customers
   without also having to act as disclosed agent for EOL.

   Confirm that marketing via the Internet, ie. the EnronOnline website,
   does not infringe any conditions of the 30/10 relief.

Thanks,

Justin Boyd


---------------------- Forwarded by Hunter S Shively/HOU/ECT on 09/04/2000
10:53 AM ---------------------------

	From:  Becky Young @ ENRON                           09/01/2000 10:31 AM

To: Hunter S Shively/HOU/ECT@ECT, Scott Neal/HOU/ECT@ECT, Steve
Jackson/HOU/ECT@ECT, Charles H Otto/HOU/ECT@ECT, Fred Lagrasta/HOU/ECT@ECT
cc: Nelson Ferries/Corp/Enron@ENRON
Subject: Producer Wellhead Gas Meeting

Please plan to attend this meeting to discuss the tracking of Producer
wellhead gas on September 12 @ 2:30 in EB3536.  You may contact Becky Young
at 30622 with any questions.

Thanks,


Scott - Please distribute to the Enron side.

(See attached file: PROJECT TIMBER - Term Sheet MTBE.doc)(See attached
file: PROJECT TIMBER - Mt Belvieu.doc)

Dana R. Gibbs
713-993-5288
 - PROJECT TIMBER - Term Sheet MTBE.doc
 - PROJECT TIMBER - Mt Belvieu.doc


---------------------- Forwarded by Kay Mann/Corp/Enron on 01/29/2001 01:27
PM ---------------------------

	From:  Alisha Guerrero @ ECT                           01/29/2001 01:26 PM

To: Mark Bernstein/HOU/ECT@ECT, Gail Tholen/HOU/ECT@ECT, Kay
Mann/Corp/Enron@Enron, Mark Lian/Corp/Enron@ENRON, Herman
Manis/Corp/Enron@ENRON
cc:

Subject: Co-op City Meeting

This is to confirm the Co-op City Meeting that has been scheduled for Tuesday
1/29/2001 at 2:00 PM in EB3394.  If you have any questions or need any
further assistance please give me a call at x36355.

Thank you,
Alisha Guerrero
x36355


fyi
---------------------- Forwarded by Kay Mann/Corp/Enron on 01/10/2001 01:44
PM ---------------------------

"Boyd J. Springer" <bjspringer@JonesDay.com> on 01/10/2001 12:43:03 PM
To: Gregg.Penman@enron.com
cc: Kay.Mann@enron.com

Subject: Re: Master Sales

yes, I think this is part of it. Also, for that reason, Ron Jolle, attorney
for the City of Chicago attended the hearing today and indicated that the
City would intervene. One likely reason for the concern over potential
abuse is that, after a lengthy delay, I understand that the ICC has again
turned its attention to rules of conduct for gas utility affiliated
interests. They had started a proceeding to work rules, but there had been
no activity for many months. The ICC Staff has apparently been reviewing
rules of conduct in connection with resumed activity regarding the rules.
                                         At the hearing today, Jerry Fox
and Mary Klyshaff represented Peoples and North Shore. ICC was represented
by John Feeley and John RIeichart. Ron Jolle represented the City of
Chicago. David Gilbert is the Hearing Examiner. (He's a good examiner.)
There was no substantive discussion re issues. The schedule is: Feb.
28-Staff and Intervenor direct; March 28-Company rebuttal; Apr. 5-11:00am
status hearing (this was included in the schedule primarily to permit early
conclusion in the event that there are no issues raised or that the issues
are resolved);April 27- Staff/Intervenor  Rebuttal; May 11 Company
Surrebuttal; May 23 10:00am hearing.   If there are disputed issues, the
hearing would be followed by briefing, issuance of an Examiner's proposed
order and biriefs/replies on exceptions.

==========
The preceding e-mail message (including any attachments) contains
information that may be confidential, be protected by the attorney-client
or other applicable privileges, or constitute non-public information.  It
is intended to be conveyed only to the designated recipient(s).  If you are
not an intended recipient of this message, please notify the sender by
replying to this message and then delete it from your system.  Use,
dissemination, distribution, or reproduction of this message by unintended
recipients is not authorized and may be unlawful.
==========


Hello Kenny,

Just a note to say Hello and that I love you .  I enjoyed yesterday
afternoon.  And I also wanted to thank you for getting up early this morning
and fixing my coffee and my slim fast.  That meant alot to me, more than you
know.  Enjoy your day - I will see you after my hair appointment tonight.

Love and Kisses
Sandra


Houston has requested we sit down with them on the phone and go over all the in-the-money contracts we have.  By their count we have about 50.  They want to account for each and understand why we may not be delivering on them.

Ed Baughman will be sending his master list in advance of a 11:30 call in Mt. Bachelor.  Please send at least one representative from each of the regional desks to discuss the list.

Thanks,

Steve


fd


-----Original Message-----
From: 	White, Stacey W.
Sent:	Wednesday, December 12, 2001 3:06 PM
To:	Evans, Casey; Dahlke, Andrea; Chapman, Tom
Subject:	FW:

 -----Original Message-----
From: 	Hayden, Frank
Sent:	Wednesday, December 12, 2001 2:48 PM
To:	White, Stacey W.
Subject:

 << File: EnronVaRCurveShift III.xls >>


awfully close......


Attached is for discussion at our 2:00 MEETING (EB3824).


Jennifer, is there another time?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 09/06/2000
04:00 PM ---------------------------

	From:  Kay Chapman                           09/06/2000 04:00 PM

To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Re: Meditations on Origination

Dave, you will not be able to attend.....Excecutive Impact & Influence
September 21 & 22.....

Kay

David W Delainey
09/06/2000 03:37 PM
To: Jennifer Fraser/HOU/ECT@ECT
cc: Fred Lagrasta/HOU/ECT@ECT, Craig Breslau/HOU/ECT@ECT, Kay
Chapman/HOU/ECT@ECT
Subject: Meditations on Origination

Jen, I would be pleased to attend - sorry for the delay on the e-mail.

Kay, please set up.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 09/06/2000
03:36 PM ---------------------------

	From:  Jennifer Fraser                           08/31/2000 05:41 PM

To: David W Delainey/HOU/ECT@ECT
cc: Fred Lagrasta/HOU/ECT, Craig Breslau/HOU/ECT@ECT
Subject: Meditations on Origination

Dave:
As a follow up to our conversations on the origination function within ENA, I
was hoping that you could join us at our middle marketing team meeting on
September 21 at 4:00 pm. I think it would be beneficial if you shared your
views on origination currently and its role (s) in the future. This would
also be an excellent forum for you to discuss ENA's short and long- term
goals.

If this date is not amenable to you, please let me know when you would be
available.

Regards,
Jen
34759


-----Original Message-----
From: Turcich, Charles
Sent: Tuesday, November 06, 2001 5:38 PM
To: Bates, Kimberly; Black, Tamara Jae; Choate, Heather; Collins, Angie; Guerra, Claudia; Hardy, Kimberly; Harvey, Claudette; Hogan, Irena D.; Holcombe, Tina ; Huble, Amanda; Irvine, Geraldine; Jackson, Brandee; Leigh, Lorie; Malkemes, Shelby; Martinez, Judy; Moore, Kevin G.; Ochoa, Amy; Presas, Jessica; Quezada, Daniel; Rangel, Ina; Roberts, Chaun; Rode, Tina; Saldana, Alex; Shoemake, Lisa; Snow, Dina; Solis, Gloria; Soto, Elizabeth; Villarreal, Alexandra; Vuittonet, Laura; Young, Becky; Zarsky, Lisa
Cc: Ellis, Carter; Brewer, Joe; Torres, Pablo; Mayeux, David; Turcich, Charles
Subject: URGENT- ACTION REQUESTED: Admins, please forward to users that have AMTEL equipment...

Due to desktop space constraints in the new Enron Center South facility, AMTEL equipment will not moved. The replacement for communications will be MSN Messenger. MSN Messenger will allow you to directly communicate with the person you are trying to reach. It will also alert you to their status (Busy, Away, On the Phone, Out to Lunch, etc.). The installation and configuration for MSN Messenger is simple. Please follow the steps listed below carefully to ensure a smooth installation.

To install MSN Messenger, first go to the Start Menu -> Programs -> System Utility Applications -> MSN Messenger icon. While navigating to the icon it may be necessary to pull down a "double chevron" if you don't see the folders specified above.

This will launch the setup for MSN Messenger. It should only take a few seconds. The configuration is very simple.

Follow the prompts closely to ensure a smooth setup.

On the first screen, titled Welcome to MSN Messenger Service!, click Next ->

Type in your standard enron.com email address. The format is firstname.lastname@enron.com <mailto:firstname.lastname@enron.com>. Please be sure that "Use this program to talk to my Microsoft Exchange contacts" box is checked. Click Next -> to continue.

Check the box labeled "Use Exchange Instant Messaging only. (Do not connect to the Internet.)
Click Next -> to continue. Click the Finish button to complete the MSN Messenger setup.

After completing the setup wizard, you should be able to sign into the MSN Messenger Service. Click the blue text to sign in

Next, you will be prompted to confirm your email address. The box should look like this--

Click the "OK" button. If the connection is successful, you should be able to see a contact list. This is where you can view your contacts status and start communications. To add a person to your contact list, click the Add button. For general help, questions, or to learn the new emoticons ( Telephone receiver <http://help.microsoft.com/EN_US/data/messengerv36_1.its51/$content$/emphone.gif>,  Boy <http://help.microsoft.com/EN_US/data/messengerv36_1.its51/$content$/emboy.gif>,  Thumbs up <http://help.microsoft.com/EN_US/data/messengerv36_1.its51/$content$/thumbu.gif>, etc.) For direct access to this link, click here <http://help.microsoft.com/EN_US/HelpWindow_msg.asp?Topic=InfoTech.asp&INI=msgv35.ini&SearchTerm=ffogol&S_Text=signing+in&H_APP=MSN%20Messenger%20Service&BrandID=MSMSGS&Filter=msgrxchg>.

Congratulations!
You can now begin using MSN Messenger and reclaim your desktop space.

If you experience errors or have problems installing MSN Messenger, please call the Enron Resolution Center at X31411.
They will be able to help correct any problems you may experience.

Thanks,
Charles Turcich
Work - 713.345.3280
Enron Corp. - ECN3278B
Desktop Analyst - Trader Support


Start project  with Elene for Mark


THE ENRON BODY SHOP FALL FIESTA
Member Appreciation Day
Wednesday, September 26th
Congratulations Member Appreciation Day Drawing Winners
(1) Case of Ozarka Natural Spring Water
Jerald Surface & Tory Bracy
Travel Bags
Martin Soto, David Easterby, Nancy Carpenter, Laura Valencia, Cheryl Laster, Rick Waddell, Rebecca Watkins
Stop by the Body Shop Office Managers Office during the week of October 1st between the hours of 9am - 4pm to pick up your prizes.
Did You Know? - Test Your Knowledge Hydration Quiz Answers
We'd Like Your Feedback!  - Member Evaluation Form
Please complete the attached form, return it to the Body Shop Reception Desk before Wednesday, October 3rd,
and your name will be entered in the drawing for a complimentary One Hour Massage.


do we have a mechanism to survey employees?  Can we do a "scientific" poll?
---------------------- Forwarded by Steven J Kean/HOU/EES on 08/02/2000 03:10
PM ---------------------------

John Sherriff@ECT
08/02/2000 03:46 AM
To: Mark Palmer/Corp/Enron@ENRON
cc: Steven J Kean/HOU/EES@EES, Jackie Gentle/LON/ECT@ECT
Subject: Enron Advertising

Mark

Thanks for the call a couple of weeks ago regarding our new ad campaign.  The
challenge as I understand it is that we have difficulty in quantifying the
benefit and effectiveness of our ads.   We can measure on a periodic basis
what the CEO/CCO/CFO perception of Enron is on a periodic basis but this does
not break down the impact of our PR efforts from an ad campaign.   I
understand this dilemma.

But one thing that we could measure that is quite important to me is what our
employees think about these ads.    If all else fails these ads should make
our employees proud to work for Enron - and this is something we should be
able to measure on a consistent basis.

I know you have an upcoming event in California where your organisation will
talk about problems and challenges we have - so if you could consider this
idea I would be very appreciative.  And of course don't get to hooked on
God's country while you are in Napa.

Thanks!

John


We are completing a telephone systems audit that involved sweeping executive
and executive assistant telephones and workspaces for listening devices.
This sweep included your telephone(s).

On Thursday, November 9, the following tests were conducted by Swailes and
Associates and CTF Specialists under the supervision of Corp. Security:

Each office was swept for radio frequency listening devices
Each telephone was opened and physically inspected
Each telephone line was checked for downline listening devices
All executive and assistant extensions were programmatically evaluated to
determine whether secondary, unknown telephones were associated with the same
extension

No problems were found.

Thanks,

Andrew Parsons
IT Compliance
3-6665


Hi Chris,

I don't know where you're at with things ...

i've been impressed how you've handled both the databases and the people involved with databases and
would be happy to provide you with a solid reference if you ever need one.  please keep this to yourself
as I don't feel this way about many people here ...

cheers :)

Cooper


i've got to wait until my cousin picks me up today, so i will probably not leave here until 6:30pm.   how late are you working?


Here's a draft.


Ann McGarry
75 Hillcrest Avenue
Rye Brook, NY 10573
mcgarrymusic@yahoo.com

To Mr. Ken Lay,

I'm writing to demand that you disgorge the millions of dollars you intentionally made from fraudulently selling Enron stock before the company declared bankruptcy, to funds such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills.  Enron and you made millions out of the pocketbooks of California consumers and from the efforts of your employees.  You are a disgrace to the human race and I hope that you and your kind suffer the kind of punishment you really deserve.

While you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out.  And Enron made an astronomical profit during the California energy crisis last year.  As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt.

The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it. You are disgusting. It seems to me that anyone who is so in the grip of out-of-control GREED as you and the others of your kind in this country, e.g., Bush, Cheney, Lott, etc., are actually mentally ill.  No other explanation suffices.  It would be in your best interests to donate your ill-gotten gains to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

With contempt,

Ann McGarry


David:  I am inquiring to see if you would be available for a short
conference call tomorrow with a few credit related items.  I cannot recall
the exact time difference between Houston and Geneva, but I can contact you
at 9 am Houston time (or later as you wish).  I have your phone number as
4122 3221111.  Please advise.  Regards.  Sara