Please forward this to all ETS lawyers.  DF

All:  Please take a look at this article.  El Paso's inartful internal documents are creating the same kind of fun for them that Microsoft had during the recent antitrust unpleasantness.  I know that we can't control the way people think about issues such as market behavior, price strategy, etc.  We can, however, remind ourselves and our clients to be very precise and careful in the way we talk about, and particularly, write about, such issues.  I'd like each of us and our clients to keep problems like El Paso's and Microsoft's in mind when we put pen to paper or fingers to keyboard.  Thanks.  df

---------------------- Forwarded by Drew Fossum/ET&S/Enron on 03/27/2001 12:06 PM ---------------------------

Business/Financial Desk; Section A
Deal for Use of Gas Pipeline Stirs Dispute on Competition
By RICHARD A. OPPEL Jr. and LOWELL BERGMAN

03/26/2001
The New York Times
Page 1, Column 4
c. 2001 New York Times Company

Early last year, the El Paso Natural Gas Company took bids from two dozen companies for the right to ship enough natural gas through its pipeline from Texas and New Mexico to meet one-sixth of the daily demand of energy-starved California.
The winner: El Paso's sister company, the El Paso Merchant Energy Company, which buys, sells and trades natural gas. The bidding was not close. El Paso Merchant offered twice as much for the capacity as the other companies bid, in total, for bits and pieces.
Why pay so much more? California officials, who are pressing a complaint against El Paso at the Federal Energy Regulatory Commission, say the answer is simple. The state contends that El Paso Merchant, with help from its sister company, saw the transaction as a way to manipulate the price of natural gas by using its control of pipeline capacity.
According to sealed documents obtained by The New York Times that are part of filings in the federal case, executives at El Paso Merchant said internally that the deal would give them ''more control'' of gas markets, including the ''ability to influence the physical market'' to benefit the company's financial positions.
El Paso executives called the accusations fanciful, and in a formal response to California's complaint, said the state ''grossly distorted'' company documents by quoting words and phrases out of context.
The dispute opens a window on an important debate about oversight of the natural gas industry, which fuels a growing share of the nation's electric power plants.
At issue is whether current safeguards do enough to prevent anticompetitive abuses in the marketing and trading of natural gas, and whether federal regulators adequately enforce existing rules. In particular, many industry officials question whether regulated pipeline companies are able to favor unregulated sister companies that trade natural gas and are free to maximize profits.
More than 200,000 miles of interstate pipelines crisscross the country, moving natural gas from Canada, the Southwest and other producing regions to fuel factories, power utilities and heat houses.
Not long ago, many parts of the country had excess pipeline capacity. But experts say that several regions, including California, New York and New England, now face constraints as demand soars for gas to fuel power plants.
In California, state officials and utility executives said the documents in the federal case, and El Paso's actions, were proof that the state's energy crisis stemmed not just from an ill-conceived deregulation plan but from price manipulation and profiteering.
''They are the market maker with this pipeline,'' said Loretta Lynch, the president of the California Public Utilities Commission, which has struggled to cope with skyrocketing power prices and supply shortages.
El Paso ''sets the price in California,'' Ms. Lynch said, and what it did was intentional. ''It has affected the price,'' she said, ''for everything related to heat and electrical power prices in the state.''
California's complaint to the federal agency contends that El Paso Merchant ''has hoarded capacity and refused to attractively price unused capacity'' on the pipeline. The state also charges that El Paso Natural Gas, the pipeline's owner, has had no incentive to spur competition, by offering discounts to other users, because the two companies are corporate siblings. The state said that El Paso had violated federal natural gas statutes that prohibit anticompetitive behavior.
The sealed filings in the El Paso case indicated that the company expected to make money by widening the ''basis spread'' -- the difference between what gas can be bought for in producing basins of Texas and New Mexico, at one end of the pipeline, and its price on delivery to Southern California.
As it turned out, spreads widened enormously over the last year as the price of gas soared in California, adding to costs for wholesale electricity that pushed the biggest utilities near bankruptcy. California utilities paid $6.2 billion above competitive prices for wholesale electricity over the last 10 months, state officials estimated. The utilities are not allowed to recoup the costs from customers. While the cost of 1,000 cubic feet of gas typically is less than $1 higher at the California end of the pipeline, spot prices in the state rose to almost $50 more than the Texas-New Mexico price in December.
To executives of the parent company, the El Paso Corporation, the accusations of market manipulation are ludicrous.
High gas prices in California, El Paso executives said in interviews, are easily explained by soaring demand, the poor credit standing of the state's utilities and the failure of the utilities to retain pipeline capacity or store enough gas for winter.
''The idea that anybody is holding back on California is really ridiculous,'' said Clark C. Smith, president of El Paso Merchant's operations in North America.
Some El Paso customers, though, agreed with California officials. The Pacific Gas & Electric Company, the San Francisco-based utility, condemned El Paso in a filing with the federal agency after its lawyers reviewed the sealed company documents.
''It is now very clear from the business records of El Paso Energy Corporation,'' the utility said in the filing, ''that the business strategy El Paso Merchant was authorized at the highest corporate levels to pursue involved manipulation of price spreads.''
The agency has not ruled on California's complaint, which asks that the deal between El Paso Natural Gas and El Paso Merchant be invalidated. Based on the agency's history of policing energy providers lightly, many industry observers predicted that the complaint would be dismissed, perhaps as soon as the agency's public meeting on Wednesday.
Nonetheless, El Paso Merchant is feeling some pressure. The subsidiary said recently that it planned to relinquish control of all but about 22 percent of the capacity on the pipeline to California, rather than exercise an option that would have allowed it to retain the entire capacity of 1.2 billion cubic feet of gas a day.
Critics said they believed El Paso made the move in hopes of lessening the chance of government action. El Paso executives deny that but do say that their decision was influenced by the backlash over the arrangement.
Surrendering the pipeline capacity made for a ''gut-wrenching'' decision, Mr. Smith said, but was ''a first-class gesture'' to California. El Paso Merchant paid $38.5 million to control the pipeline capacity from March 1, 2000, until May 31, 2001. While Mr. Clark said he did not know the return on that investment, he acknowledged that it was lucrative.
''No doubt about it,'' Mr. Clark said, ''we made good money.''
The question of whether El Paso's conduct has driven gas prices higher is expected to be scrutinized by legislators in Sacramento this week. The company also faces several lawsuits, including one by the city of Los Angeles, that accuse it of conspiring with other companies to prevent pipeline projects that could have eased California's energy crisis. El Paso denied the accusation.
With pipeline capacity and gas supplies tighter, concerns about anticompetitive behavior have increased as price volatility has created soaring profits for energy marketers and traders.
Dynegy Inc., a Houston-based energy trader, was once the target of complaints to federal regulators that it had artificially raised prices by abusing capacity that it controlled on El Paso's pipeline to California.
In a filing with regulators in January, Dynegy contended that pipeline companies routinely favored affiliates. ''Abuses abound because of financial windfalls, difficulty of detection, lengthy investigations and increased complexity of the market,'' the company said.
''There are some red flags right now,'' said William L. Massey, a member of the Federal Energy Regulatory Commission since 1993. Mr. Massey said he was troubled by the potential for abuses when pipeline companies own gas and power marketing subsidiaries as well as electric plants fueled by natural gas. El Paso is in all those businesses.
''What the commission ought to be serious about is: What are the forces at work? Is it simply robust markets responding to true supply-and-demand signals, or is it a market defined by market power and some measure of affiliate abuse?'' he said.
Many in the industry do not believe changes are needed.
''There are rules in place today that protect against affiliate abuse,'' said Stanley Horton, chief executive for gas pipeline operations at the Enron Corporation and chairman of the Interstate Natural Gas Association of America, the industry's trade group, referring to the rules under which California has brought its complaint about El Paso.
To its critics, El Paso epitomizes the competitive concerns. It operates the nation's largest network of interstate pipelines and owns one of the largest reserves of natural gas. With its recent acquisition of the Coastal Corporation, another large pipeline operator, El Paso has a market capitalization of $32 billion.
At a conference at El Paso headquarters in Houston in February, analysts heard executives predict net profits of $1.7 billion this year. El Paso's much better known rival, Enron, with its headquarters a few blocks away, is expected to earn about $1.4 billion.
El Paso Merchant provides the strongest growth. Two years ago, the unit's profits, before interest payments and taxes, were $99 million; this year, it is expected to have $700 million in North America alone. In its latest quarterly report, El Paso attributed those profits, in part, to ''commodity market and trading margins'' that were enhanced by ''power price volatility, particularly in the Western United States.''
Critics contend that El Paso set out to exploit those conditions. According to the sealed filings, on Feb. 14, 2000, the day before El Paso Merchant was awarded the pipeline capacity, executives made a presentation to William A. Wise, chief executive of the parent company, laying out the rationale for the bid.
The presentation outlined what it termed ''strategic advantages,'' including ''more control of total physical markets'' and the ''ability to influence the physical market to the benefit of any financial/hedge position,'' according to the sealed filings. The passages suggested that El Paso expected the deal to give it sway over the market for trading actual volumes of gas and to support financial transactions it had entered into with other parties to limit its risk.
For every one-cent increase in the spread on gas prices, the presentation said, El Paso Merchant stood to make an additional $2.4 million.
Under the heading ''Challenges,'' according to the sealed filings, the presentation stated that storage was needed ''to help manipulate physical spreads, adding to the overall transport/storage cost.''
On April 14, according to the sealed filings, El Paso Merchant's president at the time, Greg G. Jenkins, wrote a memorandum to Mr. Wise involving an update for directors meeting later that month. The memorandum stated: ''We will make money two ways: 1) increase the load factor, 2) widen the basis spread.''
The language appears to suggest that El Paso Merchant would profit by increasing the gas flow in the pipeline -- the load factor -- while increasing the difference between what gas could be bought for at one end and what it could be sold for at the other end -- the basis spread.
In an interview, Mr. Smith, the El Paso Merchant executive, said that the unit's prices, and profits, on bulk gas sales in California were locked in months in advance, so that the company could not benefit from rising prices in the spot market.
Otherwise, Mr. Smith declined to provide any details about money made on the pipeline deal or about financial terms of the transactions that locked in prices ahead of time. In addition, Mr. Smith said that nearly all of El Paso Merchant's pipeline capacity was used every day when prices spiked late last year, with no capacity withheld to increase prices.
The company did not respond last week to a request to discuss information in the sealed documents. But El Paso Merchant, in a filing with federal regulators, said California's complaint had ''misconstrued and incorrectly interpreted'' what it termed ''snippets of data.''
About This Report
This article and others on California's energy problems are part of a joint effort with the PBS series ''Frontline'' that will result in a documentary later this year.

Photo: The El Paso Natural Gas pipeline passes near Topock, Ariz. A dispute over bidding for its use has spurred a debate about oversight of the industry. (John Gurzinski for The New York Times)(pg. A17) Chart: ''Boom Times'' Operating revenue and net income soared last year at the El Paso Corpor 2/3ation, which sells, transports and trades natural gas. Graphs of the operating revenue and the net income for the El Paso Corporation. (Source: Company reports)(pg. A17) Chart: ''A Spike in Prices'' The spot price for natural gas produced in the Permian Basin of West Texas doubled last year. But the price that power generators paid when the gas was delivered to Southern California rose almost 10-fold. State regulators say the gap is evidence of market manipulation. Graph showing the spot price of gas delivered to Southern California and the spot price of gas bought in the Permian Basin, from September to March. (Source: Gas Daily)(pg. A17)

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


FYI - This is a memo that Jim Scabareti sent to Clayton Preble and others on
the AGL team regarding the deal and potential regulatory issues.  I thought
you might like to see it.  I will be talking to Jim and Clayton later today,
and will give you an update thereafter.  If you have any questions, please
ask.
Ed

---------------------- Forwarded by Ed McMichael/HOU/ECT on 10/24/2000 08:19
AM ---------------------------

JScabareti@aol.com on 10/24/2000 03:15:52 AM
To: ed.mcmichael@enron.com
cc:
Subject: VSCC Regulatory Strategy - Gas Cost Prudency - Asset Management
Opportunity

Ed - see attached for your information - Jim

 - BESTRA~1.DOC


Terry, thanks for your reply.  As our thinking starts to mature, I would like
to talk to you about what we see in the Japanese markets re energy.  Perhaps,
we can talk in New York in November at the ISDA board meeting.  Take care.
Mark


FYI
The curve - shift P&L information that is used in the VaR model for backtesting comes from the business units. Under the "garbage in, garbage out" rule we therefore have had some errors in the backtest data. However, the errors do not significantly affect the backtest result (i.e. it still backtests ok), but they do cast doubt on the P&L numbers that have been submitted.
DP

 -----Original Message-----
From: 	Hayden, Frank
Sent:	Thursday, December 13, 2001 4:58 PM
To:	Port, David
Subject:	FW: Power P&L by Day

 -----Original Message-----
From: 	White, Stacey W.
Sent:	Thursday, December 13, 2001 4:48 PM
To:	Lavorato, John; Hayden, Frank
Cc:	Evans, Casey; Postlethwaite, John; Dahlke, Andrea
Subject:	Power P&L by Day

John,

This file gives you similar information to the file that Jeff sent you for gas.  Frank is using it to continue investigating what went wrong with the extraction from the VaR model.  If you want me to change anything, let me know.

Thanks,
Stacey


Attached is PIRA's latest "Electricity Daily Demand Forecast."

If you have any questions regarding the report's content, please contact
Morris Greenberg (email: morris@pira.com) or Victoria Watkins (email:
vwatkins@pira.com), at (212) 686-6808.

Contact John Graziano regarding PIRA report distribution and address changes
at (212) 686-6808, email: support@pira.com.

NOTE: Circulation of the "Electricity Daily Demand Forecast" outside a
Client's licensed distribution area is strictly prohibited. Clients that are
unsure of their licensed distribution or require an extension of their
current license should contact their PIRA sales representative, or email to
sales@pira.com.

PIRA Energy Group

 - ed050301.pdf
 - ed050301.xls


3.837

LC


Larry,

It sounds like Claudia and Jacques are almost finished with the documents.
There is one item of which I was unsure.  Was an environmental
report prepared before the original purchase?  If yes, shouldn't it be listed
as an asset of the partnership and your costs be recovered?

Phillip


NewPriceSheet.exe


-----Original Message-----
From: 	Diamond, Daniel
Sent:	Wednesday, January 30, 2002 2:58 PM
To:	DL-NETCO Gas Traders; DL-NETCO Power Traders
Cc:	Forster, David; Mandola, Teresa; Mcquade, Jennifer
Subject:	**IMPORTANT** Stack Manager Users
Importance:	High

We are in the process of confirming that all traders are set up correctly and ready to trade when the system goes live.

We need to make sure that your Stack Managers are accessing the correct database. In order to do this, we need to know how you access Stack Manager:

1) Through Terminal Server (the one that opens up a desktop within a desktop and it actually appears that you have two Start buttons).
or
2) By opening the Stack Manager directly from your "native" desktop.

Please reply to this message with either a corresponding "1" or a "2" in the subject field.

If you're not sure which one you have, please contact myself x39673, Teresa Mandola x39807 or Jennifer McQuade x53614 and we'll come by your desk to help you.

Thank you,

Dan Diamond


HI,
NEW ADDRESS IS  MULEMAN1@EARTHLINK.NET


---------------------- Forwarded by Dana Davis/HOU/ECT on 02/16/2001 05:12 PM
---------------------------

"Bonnie & Rayford Abraham" <abraham5@flash.net> on 02/16/2001 05:05:32 PM
To: <Dana.Davis@enron.com>
cc:
Subject: Spiritual Gifts Discovery Tool

Hey Dana,
?
I have used this one before.? It's pretty  good...see what you think.? There
is another one that I like better, but I  can't find it.?? I will forward
when I come across it.
?
Bonnie
?
?http://www.cforc.com/sgifts.cgi
 - Spiritual Gifts Discovery Tool.url


-----Original Message-----
From: 	Schmidt, Ann M.
Sent:	Friday, October 26, 2001 4:46 PM
Subject:	Enron Mentions

Enron Troubles Only the Tip of the Iceberg?
TheStreet.com, 10/26/2001

Under the Radar: Enron's Flickering Bulb
TheStreet.com, 10/26/2001

DJ Enron Unit,New England Market Downplay Report Of Default
Dow Jones, 10/26/2001

Enron Lawsuit Over Microsoft Broadband Agreement May Block MSN
Bloomberg, 10/26/01

Enron Executives Sent Requests for Details of Affiliate Profits
Bloomberg, 10/26/01

Enron Still Target in California Amid Other Problems (Update1)
Bloomberg, 10/26/01

Enron Bonds Fall as Company Taps $3 Bln Credit Line (Update5)
Bloomberg, 10/26/01

Keller Rohrback L.L.P. Investigates Potential Claims on Behalf of Enron Corp. -- ENE -- Employees and Former Employees
Business Wire, 10/26/01

Enron Troubles Only the Tip of the Iceberg?
By Peter Eavis <mailto:peavis@thestreet.com>
Senior Columnist
TheStreet.com
10/26/2001 05:23 PM EDT
URL: <http://www.thestreet.com/markets/detox/10003083.html>

Dealings with a related party have tarnished Enron's (ENE:NYSE - news - commentary) reputation and crushed its stock, but it looks like that case is far from unique.
The battered energy trader has done business with at least 15 other related entities, according to documents supplied by lawyers for people suing Enron. Moreover, Enron's new CFO, who has been portrayed by bulls as opposing the related-party dealings of his predecessor, serves on 12 of these entities. And Enron board members are listed as having directorships and other roles at a Houston-based related entity called ES Power 3.
The extent of Enron's dealings with these companies, or the value of its holdings in them, couldn't be immediately determined. But the existence of these partnerships could feed investors' fears that Enron has billions of dollars of liabilities that don't show up on its balance sheet. If that's so, the company's financial strength and growth prospects could be much less than has generally been assumed on Wall Street, where the company was long treated with kid gloves.
Enron didn't immediately respond to questions seeking details about ES Power or about the role of the chief financial officer, Jeff McMahon, in the various entities. Enron's board members couldn't immediately be reached for comment.
Ten Long Days
Enron's previous CFO, Andrew Fastow, was replaced by McMahon Wednesday after investors criticized Fastow's role in a partnership called LJM, which had done complex hedging transactions with Enron. As details of this deal and two others emerged, Enron stock cratered.
The turmoil that resulted in Fastow's departure began two weeks ago, when Enron reported third-quarter earnings that met estimates. However, the company failed to disclose in its earnings press release a $1.2 billion charge to equity related to unwinding the LJM transactions. Since then, investors and analysts have been calling with increasing vehemence for the company to divulge full details of its business dealings with other related entities. Enron stock sank 6% Friday, meaning it has lost 56% of its value in just two weeks.
Enron's End Run?
New financial chief's involvement in Enron business partners
Enron-Related Entity	Creation DateMcMahon Involved?

ECT Strategic Value Corp.4/18/1985	Yes
JILP-LP Inc.	9/27/1995	Yes
ECT Investments Inc.	3/1/1996	Yes
Kenobe Inc.	11/8/1996	Yes
Enserco LLC	1/7/1997	Yes
Obi-1 Holdings LLC	1/7/1997	Yes
Oilfield Business Investments1/7/1997	Yes
HGK Enterprises LP Inc.	7/29/1997	Yes
ECT Eocene Enterprises III Inc.2/20/1998Yes
Jedi Capital II LLC	9/4/1998	Yes
E.C.T. Coal Company No. 12/31/1998	Yes
ES Power 3 LLC	1/7/1999	Yes
Enserco Inc.	3/25/1999	No
LJM Management LLC	7/2/1999	No
Blue Heron I LLC	9/17/1999	No
Whitewing Management LLC2/28/2000	No
Jedi Capital II LLC	4/16/2001	No
Source: Detox
However, Enron has yet to break out a full list of related entities. The company has said nothing publicly about McMahon's participation in related entities, nor has it mentioned that its board members were directors or senior officers in ES Power 3. (Nor has it explained the extensive use of Star Wars-related names by the related-party companies.) It's not immediately clear what ES Power 3 is or does. So far, subpoenas issued by lawyers suing Enron have determined the names of senior officers of ES Power 3 and its formation date, January 1999.
Among ES Power 3's senior executives are Enron CEO Ken Lay, listed as a director, and McMahon and Fastow, listed as executive vice presidents. A raft of external directors are named as ES Power 3 directors, including Comdisco CEO Norman Blake and Ronnie Chan, chairman of the Hong Kong-based Hang Lung Group. A Comdisco spokeswoman says Blake isn't commenting on matters concerning Enron and a call to the Hang Lung group wasn't immediately returned.
Demands, Demands
Rating agencies Moody's, Fitch and S&P recently put Enron's credit rating on review for a possible downgrade after an LJM deal that led to the $1.2 billion hit to equity. Enron still has a rating three notches above investment grade. But its bonds trade with a yield generally seen on subinvestment grade, or junk, bonds, suggesting the market believes downgrades are likely.
If Enron's rating drops below investment grade, it must find cash or issue stock to pay off at least $3.4 billion in off-balance sheet obligations. In addition, many of its swap agreements contain provisions that demand immediate cash settlement if its rating goes below investment grade.
Friday, the company drew down $3 billion from credit lines to pay off commercial paper obligations. Raising cash in the CP market could be tough when investors are jittery about Enron's condition.
This week, a number of energy market players reduced exposure to Enron. However, in a Friday press release, CEO Lay said that Enron was the "market-maker of choice in wholesale gas and power markets." He added: "It is evident that our customers view Enron as the major liquidity source of the global energy markets."
McMahon reportedly objected to Fastow's role in LJM, allegedly believing it posed Fastow with a conflict of interests. But he will need to convince investors that the 12 entities he's connected to don't do the same. Enron has said that its board fully approved of the LJM deals that Fastow was involved in. Now, board members will have to comment on their own roles in a related entity.

Under The Radar: Enron's Flickering Bulb
By Christopher Edmonds <mailto:cedmonds@thestreet.com>
Special to TheStreet.com
10/26/2001 05:08 PM EDT
URL: <http://www.thestreet.com/comment/chrisedmonds/10003075.html>

While the bulb at Enron (ENE:NYSE - news - commentary) may not have burnt out, it's clearly flickering. To date, investors aren't sure whether Chairman and CEO Ken Lay is up to the task of re-energizing the company he once built to greatness.
What's happened at the Houston energy giant-turned-dwarf could've been imagined with any number of ne'er-do-well companies during the well-chronicled bubble. But this is Enron. As one longtime Enron bull and shareholder said, "I never had to worry about Enron's ability to survive until this week. I still find it hard to believe."
Peter Eavis has done an exceptional job of chronicling Enron's adventures for some time. If you'd listened to him earlier this year, you'd have profited from his knowledge. His reporting on Enron's partnership shenanigans to the departure of Chief Financial Officer Andrew Fastow has been outstanding.
The rumors -- from a pending bankruptcy to a Justice Department investigation -- are, for now, just that. And, Enron did not single-handedly cause the California power crisis, nor is Royal Dutch/Shell (RD:NYSE - news - commentary) about to make a bid to buy the company. Sources do tell me that head-count reductions are likely through employee buyout offers and the company is set to refocus on its core energy business. And, while former CEO Jeff Skilling shares culpability for the current mess, his departure appears only indirectly related to Enron's current woes.
Now, Enron faces the daunting challenge of rebuilding both its business and, more importantly, its reputation.
The Company's Challenge
But what does Enron do now? It's very simple. Come clean, clean up the mess and refocus on its core business: wholesale energy markets, risk management and retail energy services. They support each other and create a platform that can be plenty profitable without a lot of gimmicks.
"Our gut feel is that Enron can pull it off, and long-term investors should hold firm, as eventually the stock gets valued on earnings, with upside potential to $25 per share over the next 12-18 months," says Jeff Dietert, power analyst at Simmons & Co. and a member of the TSC Energy Roundtable. "We believe new money with high risk tolerance should wait until Enron announces its intentions for communicating a clear path to recovery."
Dietert outlines four challenges for Enron. One, management must regain the Street's confidence and persuade investors that it can resolve balance-sheet strength and generate the expected earnings and cash flow. Two, Enron must maintain its investment-grade credit rating. Three, Enron must successfully execute its divestiture plans. Four, Enron must control the timing of the recognition of the write-down in the value of any assets where market value is less than book.
Straightforward? Yes. Easy to accomplish? No.
Although Enron says additional write-downs are unlikely -- except a $200 million charge early next year as the result of an accounting change -- analysts aren't so sure. They're focused on the company's Global Assets portfolio, sporting $6 billion in book value but generating an EBIT (earnings before interest and taxes) loss of $18 million over the past 12 months.
The divestitures include $390 million in exploration and production assets in India, $250 million in a Puerto Rico power plant and $250 million in a Brazilian power plant in the fourth quarter as well as the pending sale of Portland General, which is set to close in 2002. There will likely be others. However, Enron has to execute here, and given the current state of its affairs, the seller will feel the pressure.
The credit-rating issue is a fine line. The current ratings, BBB+ from Standard & Poor's and Baa1 from Moody's, are three levels above non-investment grade. However, both rating agencies now have Enron on their radar screens for possible downgrades. Dietert estimates that Enron's debt-to-market cap will be about 48% by year-end, and the company has interest coverage (EBITDA/ interest expense) of about 3.5 times. By comparison, the average S&P BBB-rated company has a debt-to-cap of 47.4% and interest coverage of about 6.1 times. The average BB company has debt-to-cap of 61.3% and interest expense of 3.8 times.
Frankly, everything falls on Enron's management team and its ability to reassure investors. "If Enron's management does not step up to calm investor fears, these fears could become a self-fulfilling prophecy," Dietert says. "In the potentially vicious cycle, investor fears could drive stocks down; the lower stock prices force the rating agencies to consider downgrades; potentially lower credit ratings force counter-parties to reduce exposure to Enron, limiting Enron's ability to generate earnings and cash flow."
It's time for Enron to grow up. Despite a lot of uncertainties and risk, I think it will. Investors with risk capital should do their homework on the stock and think about strategy. It's a tough call that requires strict, individual discipline.
There's an irony to this whole story, especially in Enron's lack of candor in reporting its financial results. In a much-lauded advertising campaign, Enron, looking to challenge conventional wisdom, asks the simple question, "Why? Ask why."
Investors are now asking. It's time for Ken Lay to answer.
First Things First
Many readers have asked about my relative quietness this week. Thank you for your concern. My father has fallen ill after fighting the effects of a brain tumor for more than a decade.
The choice was easy. I'm with him and my family.
Enjoy your weekend with family and friends.

DJ Enron Unit,New England Market Downplay Report Of Default
2001-10-26 17:14 (New York)

   By Kristen McNamara
   Of DOW JONES NEWSWIRES

  NEW YORK (Dow Jones)--Enron Corp.'s (ENE) retail sales unit defaulted on its
credit requirement in New England's wholesale power market this month, but the
event was neither unique nor newsworthy, the energy company and the
organization that developed the market's rules said Friday.

  The operator of the region's wholesale power market informed Enron Energy
Services last week that, for the third time in 12 months, it had traded a
greater volume of electricity than allowed by the bond it had posted and was at
risk for expulsion from New England's market.

  But it was administrative mixups, rather than financial problems, that
triggered the warning, which a few other companies have also received in the
past, the market's rulemaker said.

  "I can state with considerable confidence that there have been other
participants" that have defaulted on their credit agreements, "and it's never
been in the news," said David Doot, secretary and general counsel for the New
England Power Pool, which developed the policies governing the region's
electricity market. "My instinct is that this is blown way the hell out of
proportion."

  News of the Enron unit's default appeared in a trade publication and a major
metropolitan newspaper this week, as Enron's dealings with partnerships headed
by its former chief financial officer contributed to a plunge in the company's
stock and bond prices.

  Enron Energy Services never received word that it had defaulted on its
bonding requirement twice before, because both times it corrected the problem
within a day, spokeswoman Peggy Mahoney said.

  The letter sent by ISO New England, which operates the region's power market,
to notify the Enron unit of its third violation was addressed to the wrong
person, delaying the company's response, Mahoney said.

  "Clearly, it was an administrative error that we immediately took care of to
ensure that we would never exceed the volume limit," Mahoney said.

  The company resolved the problem by Oct. 19, Mahoney said. ISO New England
spokeswoman Ellen Foley confirmed Friday that the company had cured its
default.

  It's rare for a company to default three times, but it has happened on
occasion, Foley and Doot said.

  "I won't say it's commonplace, but I won't say it's unusual for a participant
to find itself out of compliance," Doot said. "Those things have in fact
happened from time to time."

  -By Kristen McNamara, Dow Jones Newswires; 201-938-2061;

Enron Lawsuit Over Microsoft Broadband Agreement May Block MSN
2001-10-26 16:47 (New York)

Enron Lawsuit Over Microsoft Broadband Agreement May Block MSN

     Houston, Oct. 26 (Bloomberg) -- Enron Corp.'s lawsuit
alleging Microsoft breached a contract for broadband services
could temporarily block the largest software company's high-speed
Internet service in some U.S. regions.

     Microsoft said the dispute temporarily blocks the company
from providing the high-speed service in areas where Enron
provides broadband access, leaving MSN fully operational only in
the 14 states where Qwest Communications International Inc.
operates, said Bob Visse, director of marketing for MSN.

     Enron's lawsuit was filed yesterday. Microsoft had planned to
offer fast Internet access in 45 cities beginning yesterday to
give the largest software company access to potential customers in
29 million homes. Microsoft, the No. 2 U.S. Internet provider, is
making a push to win customers from AOL Time Warner Inc.

     ``We are trying to resolve the issues with Enron as quickly
as possible and at the same time we are evaluating other
providers,'' Visse said.

     Officials at Houston-based Enron, the largest energy trader,
did not immediately return calls for comment.

                         The Agreement

     Enron in June signed an agreement with Microsoft to provide
bandwidth for MSN Internet service. Under the agreement, Enron
isn't required to deliver operational broadband services if
Microsoft hasn't first provided a billing and ordering system, Dow
Jones newswire reported.

     Enron claims in its lawsuit that Microsoft failed to deliver
the ordering and billing system required in the initial phase of
the deal, Dow reported.

     Enron's lawsuit comes after Microsoft said in an Oct. 23
letter that Enron will have breached the contract if it hasn't
provided an operational bandwidth system by Oct. 25, allowing
Microsoft to recover damages.

     Shares of Redmond, Washington-based Microsoft fell 36 cents
to $62.20, while Enron shares fell 95 cents to $15.40.

--Joyzelle Davis in Los Angeles (213) 617-0582, or

Enron Executives Sent Requests for Details of Affiliate Profits
2001-10-26 15:36 (New York)

Enron Executives Sent Requests for Details of Affiliate Profits

     Houston, Oct. 26 (Bloomberg) -- Lawyers for a shareholder
suing Enron Corp. are asking executives of the largest energy
trader to disclose any income they made from their involvement
with affiliated companies that bought and sold Enron assets.

     Lawyers have made the requests to President Greg Whalley,
Vice Chairman Mark Frevert and Chief Financial Officer Jeff
McMahon and 83 other employees arrived at Enron's Houston offices
this week, said Paul Paradis, a partner in the New York law firm
Abbey Gardy. Requests also were sent to 17 Enron partnerships such
as Whitewing Management and Marlin Water.

     Paradis represents Fred Greenberg, an Enron shareholder who
is suing the company's board for allowing former Chief Financial
Officer Andrew Fastow to run partnerships that cost the company at
least $35 million in cash and $1.2 billion in lost shareholder
equity.

     The requests are aimed at determining if Enron executives
benefited financially from roles as officers and directors of
partnerships that bought and sold company assets. Enron formed at
least 18 such affiliated companies, listing executives and
employees as officers and directors of the partnerships, according
to Texas secretary of state records.

     Under Texas law, failure to respond to the document requests
will result in subpoenas being issued. Subpoenas could go out next
week if responses don't arrive by then, Paradis said. Enron
spokeswoman Karen Denne didn't respond to requests for comment
about the document requests.

     The executives earned no income from the partnerships, Enron
spokesman Mark Palmer has said. ``There are no financial interests
in the structures themselves for any Enron employee,'' Palmer
said. He said it's common for a company to name its executives to
the boards of affiliates.

                       Affiliates Have Debts

     Texas records show Chief Executive Officer Kenneth Lay,
Frevert, Whalley, McMahon and dozens of other people who list
their address as Enron's corporate headquarters serving as
officers and directors of limited liability companies and foreign
business corporations.

     The document requests ask Enron executives for information on
any form of compensation or benefit received from any of the
affiliates, including stock grants and options. They also ask the
executives to disclose any equity or partnership interests in the
affiliates.

     Enron formed many of the affiliates to buy company assets
such as power plants and natural-gas pipelines. That allowed Enron
to move debt associated with those projects off its books.

     The affiliates bought the assets with borrowed money. They
plan to repay the debt by eventually selling the assets. Enron
might be liable for any shortfall between the sales proceeds and
the debt. That could amount to at least $3.3 billion if the assets
don't generate any money, a remote possibility, the company has
said.

                            Few Answers

     Investors and analysts pressed Enron Chief Executive Officer
Kenneth Lay for details on the finances of the partnerships in a
conference call Tuesday.

     Today, Enron spokeswoman Karen Denne didn't respond to
questions about one of them, ES Power 3 LLC.

     Texas records list 78 Enron executives and employees as
officers, directors and managers of ES Power 3 LLC. The entire
Enron board is also listed.

     Shares of Enron $1.15 to $15.20 in late trading.

--Russell Hubbard in the Princeton newsroom at 609-750-4651, or at

Enron Still Target in California Amid Other Problems (Update1)
2001-10-26 16:15 (New York)

Enron Still Target in California Amid Other Problems (Update1)

     (Updates with closing share price in last paragraph.)

     Sacramento, California, Oct. 26 (Bloomberg) -- Enron Corp.,
facing an inquiry by federal securities regulators into
partnerships run by the former chief financial officer, remains a
target of investigations and lawsuits in California.

     California lawmakers and regulators have accused power
providers of manipulating the state's energy market to raise
prices. Enron, the biggest energy trader, and other power sellers
have denied the charges repeatedly.

     Next month, a California Senate committee investigating the
power market plans to hold a hearing to determine if Enron and
other generators are complying with subpoenas for trading
documents. Enron has been filing documents in Sacramento,
California.

     ``They are still putting documents in their depository, and I
don't think they've completed that process,'' said Alexandra
Montgomery, a consultant to the committee. It ``remains to be
seen'' whether Enron is complying with its subpoena, she said.

     The suits and inquiries came after wholesale power prices in
California soared, leaving the state's two largest utilities
insolvent. Under California's plan to open its electricity market
to competition, the utilities of PG&E Corp. and Edison
International weren't allowed to pass rising costs to customers.

     ``I know that we're doing our best to comply with what the
committee is asking for,'' Enron spokesman Mark Palmer. ``We are
putting documents in the depository, and we're looking forward to
a speedy resolution.''

     Shares of Houston-based Enron have fallen by more than half
since Oct. 16. The company ousted Andrew Fastow as the chief
financial officer Wednesday amid a U.S. Securities and Exchange
Commission inquiry into a partnership he ran that cost Enron $35
million.

                            Grand Jury

     Enron also is one of the companies being investigated for
civil and criminal violations by California Attorney General Bill
Lockyer, who convened a grand jury in June.

     Lockyer has been criticized by Enron officials for telling
the Wall Street Journal in May that he would like to put Enron
Chairman Kenneth Lay in ``an 8 x 10 cell that he could share with
a tattooed dude who says `Hi my name is Spike, honey.' '' Lockyer
later apologized for the remark.

     The attorney general's investigation is proceeding, Lockyer
spokeswoman Sandra Michioku said. Michioku said she didn't know
when civil or criminal charges against Enron or other power
providers might be filed.

     ``Our investigation is still being pursued,'' she said. ``We
had to go to court to get Enron to turn over documents, so that
slowed things down a bit.''

     Enron's Palmer said he didn't know the status of the attorney
general's investigation.

     ``I think the attorney general demonstrated his willingness
to take a fair and impartial look a long time ago when he made his
vulgar and unfounded remarks about our chairman,'' Palmer said.

                           More Lawsuits

     Enron, along with other major power providers such as Duke
Energy Corp. and Dynegy Inc., face at least five lawsuits alleging
they manipulated California energy prices in violation of
antitrust laws.

     The cases, which include separate complaints filed by the
City of San Francisco, California Lieutenant Governor Cruz
Bustamante and various consumers, currently are in state courts
awaiting a coordination proceeding, said Michael Aguirre, a lawyer
representing Bustamante. The lawsuits should be assigned to a
judge by the end of next month, he said.

     If the complaints succeed, the companies might be ordered to
repay profits from any illegal activities and pay fines, including
triple damages.

     Enron's stock fell 95 cents, or 5.8 percent, to $15.40,
declining for the eighth day in a row. The shares have fallen 80
percent in the past 12 months.

--Daniel Taub in Los Angeles, (323) 801-1261 or

Enron Bonds Fall as Company Taps $3 Bln Credit Line (Update5)
2001-10-26 16:18 (New York)

Enron Bonds Fall as Company Taps $3 Bln Credit Line (Update5)

     (Adds investor comment in fourth paragraph.)

     Houston, Oct. 26 (Bloomberg) -- Enron Corp. bonds and shares
fell after the largest energy trader tapped a $3 billion credit
line because it has been shut out of the leading market for low-
interest, short-term loans.

     The company's stock has fallen 54 percent in the past 14 days
after investors questioned its transactions with affiliates run by
Enron's former chief financial officer. The shares fell 95 cents,
or 5.8 percent, to $15.40 today.

     Chief Executive Officer Kenneth Lay has failed to reassure
investors that the company's credit rating won't be cut, investors
said. Enron can no longer borrow in commercial paper markets,
where short-term loans carry lower rates than banks offer.

     ``Do they have the financial flexibility they once had? No,''
said John Cassady, who helps manage $3 billion in bonds at Fifth
Third Bancorp. ``People are questioning the credibility of
management.''

      The company will use its credit line to pay off $2.2 billion
in commercial paper it has outstanding, Enron spokesman Mark
Palmer said.

                            Bonds Drop

     Enron's 6 3/4 percent bonds, which mature in 2009, declined 1
1/2 points to a bid of 84 cents on the dollar and an offer of 86
cents. At that price, the bonds, which carry a rating of ``BBB+,''
yield 9.53 percent.

     Investors have grown concerned that the company's credit
rating will be cut after $1.01 billion in third-quarter losses
from failed investments. Enron needs good credit to raise cash
daily to keep trading partners from demanding collateral and to
settle transactions.

     Enron's decision to tap its credit line was ``a smart
financial move,'' said Stephen Moore, a vice president at Moody's
Investors Service who follows the company. ``It took away the
hassle and time-consuming nature of rolling commercial paper and
insured access to capital.''

     Though Enron's bonds have investment-grade ratings, their
yield at current prices is higher than those of industrial bonds
that carry junk ratings. According to Bloomberg data, companies
with ``BB'' ratings pay on average 9.16 percent to borrow for
seven years.

     A lower credit rating may also force Enron to buy back
holdings in other partnerships with its stock, diluting the value
of Enron investors' stock.

     Partnerships called Whitewing, Marlin and Yosemite own Enron
assets they bought with borrowed money. Enron sold the assets to
the partnerships to keep related debt off its books. The
partnerships plan to repay the borrowed money by selling the
assets.

                         Other Liabilities

     If Enron loses investment-grade rating, the borrowed money
comes due earlier, leaving less time for the partnerships to find
the best price for the power plants and other assets. Enron would
have to make up any shortfall between what the assets would sell
for and the amount of the debt.

     One way would be issuing common shares to exchange for Enron
preferred convertible shares held by the partnerships. That would
thin out the holdings of every other investor.

     Of the two main bond-rating companies, Moody's and Fitch have
Enron on watch for possible downgrade, and Standard & Poor's
lowered Enron's long-term credit outlook to negative. Egan-Jones
Rating Co. today lowered its rating on Enron's debt to ``BB+,''
one notch below investment grade, from ``BBB-.''

     Enron's liabilities associated with the partnerships amount
to at least $3.3 billion, the company has said.

     Enron ousted Chief Financial Officer Andrew Fastow on
Wednesday amid a Securities and Exchange Commission inquiry into a
partnership he ran that cost the company $35 million in direct
losses. Enron also bought back 62 million shares from the
partnership, reducing shareholder equity by $1.2 billion.

     ``It looks like the guy who was supposed to do everything for
the benefit of shareholders was running partnerships for the
benefit of himself,'' Fifth Third's Cassady said.

     Jeff McMahon, head of Enron's industrial markets group, was
named CFO in a bid to restore investor confidence, Lay said in a
statement.

--Russell Hubbard in the Princeton newsroom at 609-750-4651, or at

Keller Rohrback L.L.P. Investigates Potential Claims on Behalf of Enron Corp. -- ENE -- Employees and Former Employees

10/26/2001
Business Wire
(Copyright (c) 2001, Business Wire)

SEATTLE--(BUSINESS WIRE)--Oct. 26, 2001--Seattle's Keller Rohrback L.L.P. is currently investigating potential ERISA claims on behalf of participants and beneficiaries of Enron's retirement and 401(k) plans.
The investigation period covers January 2000 through October 2001. The investigation focuses on concerns that, under the law interpreting ERISA, Enron and its plan administrators may have breached their fiduciary duties of loyalty and prudence by failing to disclose and inform the Plan participants and beneficiaries with respect to the use of employer stock as a Plan investment. Rather than providing complete and accurate information to the Plans' participants, it may be alleged that Enron and the plan administrators may have withheld and concealed material information, thereby encouraging participants and beneficiaries to continue to make and to maintain substantial investments in company stock and the Plans. This investigation is being conducted in light of recent events.
On Oct. 16, 2001, Enron surprised the market when it announced that the Company was taking "non-recurring charges totaling $1.01 billion after-tax, or ($1.11) loss per diluted share," in the third quarter of 2001. Enron later revealed that a material portion of the charge related to the unwinding of investments with certain limited partnerships, controlled by Enron's CFO, and that the Company would be eliminating more than $1 billion in shareholder equity as a result of its unwinding of the investments. As this news began to be assimilated by the market, the price of Enron common stock dropped significantly. In addition, several recently filed securities suits allege that Enron executives engaged in extensive insider trading, gaining millions of dollars in personal proceeds. Enron retirees have lost a substantial portion of their retirement earnings due to the drop in value of their retirement assets.
If you are a member of an Enron retirement plan, wish to discuss this announcement, or have information relevant to the investigation, you may contact paralegal Liza Catabay, or any member of our team (Britt Tinglum, Liza Catabay, or Lynn Sarko) toll free at 800/776-6044, or via e-mail at investor@kellerrohrback.com.
Seattle's Keller Rohrback L.L.P. has successfully represented shareholders and consumers in class action cases for over a decade. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.

CONTACT: Keller Rohrback L.L.P. Liza Catabay, 800/776-6044 investor@kellerrohrback.com www.SeattleClassAction.com
15:16 EDT OCTOBER 26, 2001
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.


Debra,

Please, disregard the e-mail I just sent you on Phillips Gas Marketing Company.  The GISB we need to amend is with Phillips Petroleum Company.  The counterparty called back and drew to my attention that we incorrectly booked our deals under Phillips Gas Marketing Company.  The deals should have been booked under Phillips Petroleum Company and I have communicated same to the Trader.  Details for Phillips Petroleum Company are as follows:

Contact:  Janice White
Contract #: 96029335
E-mail: jgwhite@ppco.com
Phone: (713) 669-7351
Fax:(713) 669-7358

If you notice all the contact information stays the same except for the contract number.

Thanks,

Ann


Sara,

I left Janine a phone message but didn't get to talk with her.  I can make
this time work.

Best regards,
Susan

---------------------- Forwarded by Susan Musch/ENRON_DEVELOPMENT on
02/22/2001 02:31 PM ---------------------------

Janine Juggins@ECT
02/22/2001 11:35 AM
To: Sara Shackleton/HOU/ECT@ECT
cc: Robert Bruce/NA/Enron@Enron, Guenther Klar/LON/ECT@ECT, Susan
Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Meeting in Houston

Slight amendment to your proposal:

(1) Credit Tuesday 27th at 10 am
(2) Softs Tuesday 27th at 11 am

Already have a meeting scheduled at 9am that day. Will this work for you ?
Thanks
Janine

From: Sara Shackleton on 22/02/2001 10:08 CST
To: Janine Juggins/LON/ECT@ECT
cc: Robert Bruce/NA/Enron@Enron, Guenther Klar/LON/ECT@ECT, Susan
Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Meeting in Houston

Janine:  I would like to meet with you (and Guenther) regarding two topics:

(1)  softs trading (together with Bob Bruce)

(2)  credit trading (do we need anyone else?)

Either of Tuesday or Friday morning works fine.  Let me propose 9 am Tuesday
for softs and 10 am for credit (and I am flexible).  Bob and I are located
only several offices apart on the 38th floor of the Enron building.

We look forward to hearing from you.

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


What fun.

I know T. Mueller is on holiday.  I suspect he would want AI and St. Paul to
agree in writing that this doesn't prejudice any rights/constitute a waiver,
etc.

You may have considered this already, but payment to /request for payment to
EEPC may trigger the responsibility to pay VAT.

Good luck, and keep me posted.

Kay


fyi

> Attached below are electronic copies of the President's memorandum and the
> Secretary of Energy's Order, which we just received, directing PG&E's gas
> suppliers to keep selling gas to PG&E.
>
> The President's memorandum includes two sentences that appear in
> crossed-out form in the electronic copy attached below.  These two
> sentences do NOT appear in the final copy signed today by President
> Clinton, a copy of which we received by facsimile from DOE.  The excised
> text would have kept the President's emergency findings in effect for 120
> days, as PG&E requested.  But the final text, which bears President
> Clinton's signature, does not include that ruling.  (showing us a
> last-minute change made in the White House.)
>
> The short duration of these orders comes as something of a disappointment.
> But we have made history here.  Never before has the Defense Production
> Act been used to address an energy supply shortfall.  And, the Natural Gas
> Policy Act emergency powers upon which the President and Secretary also
> rely have never been invoked before at all.
>
> Now the work begins of contacting the gas suppliers.
>
>  <<President's FindingsRevised.doc>>  <<GasOrder.revised.doc>>
>
>

 - President's FindingsRevised.doc
 - GasOrder.revised.doc


Dear TSC community,

I know what you,re wondering;  &When is everything going to turn around?8

Everyone is wearing that question on his or her face.  I call it
THE LOOK:  The look of disillusionment, of lethargy, of confusion.
Of when will +the good times, return?

And everywhere I am, whether on CNBC, at my desk, or on Wall Street,
I,m asked the same thing, &Cramer, when will the market turn around?8

And I say, &That,s not the question you should be asking.  The
question to be asked is +How are YOU are going to make money in THIS market?8

Join me Monday evening, August 6 in New York City and I will show you
how to choose winning stocks, steer clear of the losers, and identify
the sectors that will side step the market,s volatility, and much more!
All to make you money!

Don't look for a magic bullet to solve everything.  It doesn't exist.
Take action.  I will show you how.

Register today! Save $100 by registering before July 23rd !

I,m looking forward to seeing you in August.

Click here to register http://www.seeuthere.com/event/579242482754 or
call TheStreet.com Customer Service Department at 1-800-562-9571,
Monday-Friday, 8am-8pm EST.

Sincerely,

Jim Cramer
Co-founder/TheStreet.com
Chief Markets Commentator/CNBC

This email has been sent to you by TheStreet.com because
you are a current or former subscriber (either free-trial
or paid) to one of our web sites, www.thestreet.com or www.realmoney.com. If
you are not a current or former
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error, please forward this message to members@realmoney.com,
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To view our privacy policy, please click here:
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If you would prefer not to receive these types of emails from
us in the future, please send us an email at any time to
members@realmoney.com.


Francisco,

I have verified that there are no obstacles for Enron to do a deal with a
Chilean company from Houston.  If you have also made sure that there aren't
any legal problems from your side, all we have to do is agree on a price.
Please e-mail me or call sometime today.  I will be in the office today but
gone on Thursday and Friday.  If you miss me at my desk 713-853-0508, you can
always call my cell phone at 713-806-0612.  I look forward to the opportunity
of doing business with you.

Thanks,

Jay

"Francisco Ruiz-Tagle (CMPC Finanzas)" <FRUIZTAGLE@gerencia.cmpc.cl> on
12/04/2000 01:37:55 PM
To: "'Jay.Epstein@enron.com'" <Jay.Epstein@enron.com>
cc:
Subject: RE: ISDA/Omnibus Template

This company is not government owned. Tks for the forms you sent me.

> -----Mensaje original-----
> De: Jay.Epstein@enron.com [SMTP:Jay.Epstein@enron.com]
> Enviado el: lunes 4 de diciembre de 2000 14:09
> Para: fruiztagle@gerencia.cmpc.cl
> Asunto: ISDA/Omnibus Template
>
> Francisco,
>
> At your request, I have attached sample short and long form swap
> documents.
> I am still working with our legal department to determine how we can enter
> into a swap with a Chilean company.  Legal wanted me to ak if any part of
> your company government owned.  Please let me know.
>
> Thanks,
>
> Jay
> ---------------------- Forwarded by Jay Epstein/HOU/ECT on 12/04/2000
> 11:06
> AM ---------------------------
>
>
> Tiffany Williams@ENRON
> 12/04/2000 10:54 AM
>
> To:   Jay Epstein/HOU/ECT@ECT
> cc:
> Subject:  ISDA/Omnibus Template
>
> Jay,
>
> Per your request, I've attached an ISDA and Omnibus Template for a swap
>
> (See attached file: ISDA Swap.doc)(See attached file: Omnibus Swap.doc)
>
> Tiffany
>  <<Archivo: ISDA Swap.doc>>  <<Archivo: Omnibus Swap.doc>>


Here are the cashout amounts for 5/00 and 6/00 for Duke Energy Field
Services.  We also need to enter a demand fee to account for the excess of
103% charge on the sale side.  I have those amounts below.  Let me know if
you have any questions.

May 2000
Deal 157278 $2,486.00 excess charge
  $2.38  cashout

Deal 157288 $71.85  cashout

June 2000
Deal 157278 $920.21  excess charge
  $208.88  cashout

(There is no purchase cashout for 6/00)

Thanks,
Megan


Are you interested in doing dinner / or show Sunday afternnoon / evening?

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


Article 2, Section 2.4 of the recent Settlement Agreement between SCE and CPUC states that SCE intends to apply to the CPUC for approval  to incur up to $250 million (recoverable in a tracking account) to acquire financial instruments intended to hedge fuel cost risks associated with its URG and QF contracts.  Any commercial opportunities there?


THIS MESSAGE IS BEING SENT OUT ON BEHALF OF GREG NIKKEL AND KIM LESLEY

Below is a summary of our activities this past week

Accomplishments:
Delivered workshops at NEPCO
Gained agreement with NEPCO on status of showstopper reports
Scheduled India' s workshops for next week
Rolled out (to NEPCO) the user manuals developed

Upcoming:
Complete gathering of data points and begin to layout longer term strategy
(Elaine and Kim)
Develop additional workshops (design and data flow, consolidations and
intercompany)
Develop and deliver second evaluation
Roll out manuals to user group in Houston

Where are we at?
We should be able to ask more specific questions in our follow up evaluation
to get better data on what specifically they don't like about the reporting
out of SAP but as a rule so far we have consistently heard the issue of
management quality reports, ability to pull data from across modules (ie. HR
and PS data) and I can't get the data the way I want to see it therefore I
don't understand what the data is telling me.

This last point will be helped by these workshops (ability to view the data
in mulitple ways) but only to the extent where people use the tools available
and spend a little time to work with the system.  The design sessions
(upcoming) should help address some of these questions aswell - one big
learning from this has been that the majority of users do not understand
their business unit design or the overall design and therefore can't figure
out what the system data is telling them.  This is being addressed in the 7/1
training plan and will also be addressed in the long term reporting strategy.

Thanks, again if you have any questions please contact Melissa, Greg or
myself.

Kim Lesley


---------------------- Forwarded by Judy Hernandez/HOU/ECT on 04/26/2000
08:27 AM ---------------------------

"Jennifer Cutaia" <jcutaia@tupac.com> on 04/26/2000 08:10:52 AM
To: judy.hernandez@enron.com
cc:
Subject: [Fwd: Fwd: FW: You have to try this!]

>From: "Norma Chavez" <Norma.Chavez@enron.com>
>To: jcutaia@tupac.com
>Date: Thu, 20 Apr 2000 11:42:53 -0500
>Subject: Fwd: FW: You have to try this!
>
>
>
>
>---------------------- Forwarded by Norma Chavez/ENRON_DEVELOPMENT on
04/20/2000
>11:40 AM ---------------------------
>
>
>"patricia m" <patricia019@hotmail.com> on 02/18/2000 03:31:03 PM
>
>To:   Mezagirl2000@aol.com, KAMeza@Central.UH.EDU, ECValdez@Central.UH.EDU,
>      LHerrera@UH.EDU, mmeza@POP.UH.EDU, Norma.Chavez@enron.com,
>      mimi_ccc@yahoo.com, rosiecav@hotmail.com, LMMeza@Central.UH.EDU
>cc:
>
>Subject:  Fwd: FW: You have to try this!
>
>
>
>
>
>>From: RavishingM@aol.com
>>To: Algy2@aol.com, Andrety2@aol.com, SourThymez@aol.com, TigerTyte@aol.com,
>>        Patricia019@hotmail.com
>>Subject: Fwd: FW: You have to try this!
>>Date: Fri, 18 Feb 2000 13:15:07 EST
>>
>>
>>
>
>______________________________________________________
>Get Your Private, Free Email at http://www.hotmail.com
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>(E-mail)" <alvarez.tracy.r000@sysco.com>,        "Uncle Jerry & Aunt Elise
>(E-mail)" <gerelis1@swbell.net>,        "Uncle Robert & Aunt Gracie (E-mail)"
><grarob1@aol.com>,        Jerie Meza      <JMeza@GABLES.com>
>Subject: FW: You have to try this!
>Date: Fri, 18 Feb 2000 11:04:26 -0500
>Return-Receipt-To: Kris Marron <KrisM@GABLES.com>
>MIME-Version: 1.0
>X-Mailer: Internet Mail Service (5.5.2650.21)
>Content-Type: text/plain;     charset="iso-8859-1"
>
>Hey everybody!  This one really got me.  I couldn't believe it.
>
>-----Original Message-----
>From: Melanie Peterson
>Sent: Friday, February 18, 2000 9:52 AM
>To: Anna Watson; Houston Reception; Kris Marron; Veronica Lopez; Bill
>Hearn; Tom Thieme; Frank Nash; hsedept@tuboscope.com; newhouse@mail.com;
>RMM190@aol.com; rpasanen@blkbox.com; sppalermo@aol.com;
>xhiladoo@earthlink.net
>Subject: FW: You have to try this!
>
>
>This is cool!
>
>Subject: You have to try this!
>
>Are you the 2%?
>
>This is weird. Follow the instructions! NO PEEKING AHEAD! Free will
>or synaptic wiring? You be the judge.
>
>Do the following exercise, guaranteed to raise an eyebrow. There's
>no trick or surprise. Just follow these instructions, and answer the
>questions one at a time and as quickly as you can!
>
>Again, as quickly as you can but don't advance until you've done
>each of them ... really.
>
>Now, arrow down (but not too fast, you might miss something).
>
>
>
>
>
>Think of a number from 1 to 10
>
>
>
>
>
>
>
>Multiply that number by 9
>
>
>
>
>
>
>
>If the number is a 2-digit number, add the digits together
>
>
>
>
>
>
>
>
>Now subtract 5
>
>
>
>
>
>
>
>
>Determine which letter in the alphabet corresponds to the number you
>ended up with (example: 1=a, 2=b, 3=c, etc.)
>
>
>
>
>
>
>Think of a country that starts with that letter
>
>
>
>
>
>
>
>
>
>Remember the last letter in the name of that country
>
>
>
>
>
>
>
>
>Think of the name of an animal that starts with that letter
>
>
>
>
>
>
>
>
>Remember the last letter in the name of that animal
>
>
>
>
>
>
>
>Think of the name of a fruit that starts with that letter
>
>
>
>
>
>
>
>
>
>
>Are you thinking of a Kangaroo in Denmark eating an Orange? Told you
>this was FREAKY!!
>
>If not, you're among the 2% of the population whose minds are
>different enough to think of something else. 98% of people will answer
>with
>kangaroosin Denmark when given this exercise.
>
>Freaky, huh?
>
>Keep this message going. This one is actually worth sending on to
>others.  Forward it to people you know and see if they can see if they
>are
>usual or unusual.

------------------------------------------------------------
Tupac: the man, the legend...the free e-mail service.
Click here -------------------->  http://www.tupac.com


Start Date: 1/31/02; HourAhead hour: 15;  HourAhead schedule download failed. Manual intervention required.


Mark

At the bottom of this email is Totality's blue-lined changes to our NDA.   I
can get Kate Clark's phone number if you need it.

-John

 -----Original Message-----
From:  Joe Escobar <jescobar@totality.com>@ENRON
[mailto:IMCEANOTES-Joe+20Escobar+20+3Cjescobar+40totality+2Ecom+3E+40ENRON@ENR
ON.com]
Sent: Friday, March  16, 2001 3:38 PM
To: Allario, John
Subject: FW: ENRON NDA request

John,

Give me a call and let me know how you want to move forward.  My best guess
is that if your legal signs off then fedex a hard compy to Totality attn
John Sheputis.

Esco

-----Original Message-----
From: Kate Clarke
Sent: Friday, March 16, 2001 1:28 PM
To: Joe Escobar
Cc: Thomas Georgis
Subject: RE: ENRON NDA request

Joe,  and I think Tom you were looking for this too.  sorry it took me this
long, didn't realize it was a priority.  but here you go with my comments.
I didn't make many comments, (being Enron--i.e.Jurisdiction) however the
most important would be the Arbitration clause.  we would not want our
Confidential Info--e.g.. intellectual property handled by and
Arbitrator--too important.  You can have them call me directly to discuss if
they have any problems.

Kate

-----Original Message-----
From: Joe Escobar
Sent: Wednesday, March 14, 2001 1:56 PM
To: Kate Clarke
Subject: ENRON NDA request

kate,

Please take a look at this NDA and red line accordingly.  Im going to run to
a 2PM meeting and then we can discuss

Thanks

Joe

 - enron.TotalityNDA.doc


Prebon Energy has sent you an invitation from Sendomatic.com!

To view your invitation click the web address below or copy and paste it into your web browser:
http://www.sendomatic.com/servlets/v?e=61930&u=745821

If you are having trouble viewing the above web address, visit
http://www.sendomatic.com/servlets/l?u=matt_smith@enron.com
and create an account to view the events you have received.

Hope you have fun!

--

P.S. If you'd like to send your own personalized invitations or announcements go to http://www.sendomatic.com


Craig,  Please review the attached letter.  I am specifically interested in
your comments to the last paragraph.  Thanks.

----- Forwarded by Gerald Nemec/HOU/ECT on 09/25/2000 10:54 AM -----

	Gerald Nemec
	09/25/2000 10:41 AM

		 To: Joan Quick/HOU/ECT@ECT
		 cc: Mark Whitt@ECT, Barbara Gray, Arvel Martin/HOU/ECT@ECT, Scott
Josey/Corp/Enron@ENRON
		 Subject: Wildhorse Nomination Letter

Attached for your review is a draft of Wildhorse Nomination Letter.  Please
review and provide any comments.  Mark & Joan, I need help with the
nomination format and facts in the first paragraph.


Hey, I'll try and give you a call tonight at your flat.  As far as "free
nights" over Thanksgiving go...I'm pretty much open Tues, Wed, Fri and Sat.
Katy and I are very excited about taking you out to get some REAL
margaritas.  I can't remember where your favorite ones are, but where ever
they may be the drinks are on me.  (Although given your increased tolerance
these days, you may break me).  The reason I was asking about when you were
coming home is...Jeffy Jeff is playing Gruene Hall the 15th and 16th of
December and If you were up to it, I thought it'd be a good weekend trip for
you, Katy, myself and whomever else may want to tag along (especially since
it doesn't look like we'll be making it to Gruene over New Years).  Plus, if
we did go I think I could swing leaving Friday night and not coming back
until Monday morning...The outlet mall is calling your name.

Talk to you soon,
Susan

PS - I have encouraging news regarding London, I'll tell you more about it
when I talk to you.

	Enron Capital & Trade Resources Corp.

	From:  "Emily Hillegeist" <ehillegeist@hotmail.com>
11/20/2000 05:19 AM

To: sscott5@enron.com
cc:
Subject:

hey- am coming home on dec 13th, arriving around 2pm- and am leaving
tomorrow to come home- get in houston at 2pm as well.  heard you ran into
little ken the other day- am so jealous!  what happened?  tried to call
yesterday, but no answer.....what's been going on?  long time, no
talk.....let me know asap about any potential get togethers or "free"nights
you and everyone might have over the holiday week.  see you soon....
e
_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

Share information about yourself, create your own public profile at
http://profiles.msn.com.


This deal was a physical payback to WAPA, and it should be in at a zero
price. I've added a comment into the deal to explain this, and I asked Holden
to put comments in any weird deals he enters from now on. Thanks for catching
this - it does need to be confirmed.

Kate

Kimberly Hundl@ENRON
04/17/2001 09:05 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Deal #582470

This deal has no price entered -should we not confirm it?  or is it wrong?
Thanks!
Kim


thanks

 -----Original Message-----
From: 	Keiser, John
Sent:	Wednesday, October 03, 2001 5:43 PM
To:	Geaccone, Tracy; Korbelik, Stephanie; Gilbert, Steve; Moore, Jan
Cc:	Baker, Henry
Subject:	RE: Weekly Commercial Net Contribution Summary

OK, let's try for submission to Henry early Friday mornings.  And we will shoot for it being available on the Web by Friday afternoon.

 -----Original Message-----
From: 	Geaccone, Tracy
Sent:	Wednesday, October 03, 2001 1:19 PM
To:	Keiser, John; Korbelik, Stephanie; Gilbert, Steve; Moore, Jan
Cc:	Baker, Henry
Subject:	RE: Weekly Commercial Net Contribution Summary

We can probably do this.  However, if Steve Harris has not approved by then, I will not be able to send.  Why so early?  Why not first thing Friday?

 -----Original Message-----
From: 	Keiser, John
Sent:	Wednesday, October 03, 2001 1:07 PM
To:	Korbelik, Stephanie; Geaccone, Tracy; Gilbert, Steve; Moore, Jan
Cc:	Baker, Henry
Subject:	FW: Weekly Commercial Net Contribution Summary
Importance:	High

Henry Baker will email you no later than  each Thursday morning with the last "Summary" with the YTD and QTR info section titles adjusted accordingly.  This next one will be October month forecast.  The YTD will be September YTD with the Actual line reading Actual/Forecast since September is not yet finalized.  When we are at the end of a QTR (like now) and forecasting the first month of the next QTR I will add a section for the next QTR (in this case 4th QTR).

This week's template follows:
 << File: WeeklyWeb100501.XLS >>
Please fill in your company's data on the template and return by email to Henry Baker no later than 3:00 pm on each Thursday.

The report will be titled "Weekly Commercial Net Contribution Summary" and will ultimately reside in the ETS Updates, Financial Forecasts section of the ETS Website.  Also, keep submitting and inputing into the Website the more detailed weekly reports as you have been.  We will not be publishing the Summary by email but watch for it on the Website.  The way the Website works, it might not show up until Friday morning.  If you need an advance copy, let Henry know and he can email it to you.

Also, when filling in your variances, watch for rounding issues where it might show up as zeroes but the totals would foot differently when adding the visual amounts.


To those of you who responded affirmatively to playing tennis on Tuesday, I
am sorry to say that the weather looks as though it will not cooporate with
our efforts.

In other words....its canceled - stay inside and stay warm!!

Dana


FYI -

We are having some "after-the-fact" balancing issues with King Ranch.  I just
spoke with Carol regarding our net position with the plant, she has informed
me that the Saxet Canales production we are buying at the inlet has been
averaging approximately 3,850 Dth/day for January, and has been producing at
or around that level since November.  We don't have eyes at the meter,
however, Carol was brought online this past week, and I will be receiving
production information on a regular basis to balance redeliveries.

We have been scheduling 838 to 1,045 Dth/day at the meter.  We need to gross
up for Jan in order to ensure that we capture our volumes correctly and do
not create additional balancing issues with the plant.

Please let me know if you have any further questions, or need additional
information.

Mary


A projected cost summary for 1999 is presented below for the NNG Gomez
facility:

 45,000 costs-to-date associated with containment of lube oil
 40,000 costs-to-date associated with groundwater cleanup
 35,000 anticipated costs for installation of flair scrubber
 20,000 anticipated costs for installation of 10 additional recovery wells
 10,000 anticipated costs for installation of water discharge system
 20,000 anticipated costs for O&M of recovery system (remaining 9 months)
 5,000 anticipated costs for quarterly groundwater monitoring (3 events)
 20,000 contingency for expansion of recovery system

 $195,000 TOTAL for 1999

Please note that this estimate does not include overhead allocations.

Call me if we need to discuss. Thanks, George

Larry Campbell
04/02/99 11:07 AM
To: George Robinson/OTS/Enron@Enron
cc:
Subject: Environmental Costs for PG&E and KN

Pleae provide me with the requested information from Nancy Wood
---------------------- Forwarded by Larry Campbell/ET&S/Enron on 04/02/99
10:16 AM ---------------------------

From: Nancy Wood on 03/30/99 01:53 PM CDT
To: Larry Campbell/ET&S/Enron@Enron, Larry R Loveless@Enron
cc:
Subject: Environmental Costs for PG&E and KN

It's that time again.  Please provide what you believe the costs for the rest
of 1999 will be associated with the assets which have not been sold for PG&E
and KN.

As always, just give me your best guess.   Please have this information to me
by April 5.

If you have any questions, please let me know.

Thanks!

N


Debbie is putting together a list of spreadsheets that these deals are coming
from.  In the meantime,  we will start combing through some of the
spreadsheets that we have.

Thanks


Greg Whalley's four diamond club level Astros tickets are available for tonight and tomorrow night (5/21 & 22).  Please advise if you have an interest.

Many Thanks,

Liz Taylor
x31935


Comments?

-----Original Message-----
From: Saunders, James
Sent: Wednesday, November 21, 2001 9:47 AM
To: Hayslett, Rod
Subject: FW: Enron--Methanol Plant Outage

we need to consider meth plant reserve
its going to be difficult to justify current valuation

-----Original Message-----
From: Meers, Thomas
Sent: Monday, November 12, 2001 9:19 AM
To: Clayton, Paul
Cc: Saunders, James
Subject: Enron--Methanol Plant Outage

	Paul,

	The Methanol Plant was shutdown during August of this year due to poor economics.  The following is a list of steps 	taken to prepare the plant for this outage:

	Lines and vessels have been purged and are mostly open to the atmosphere.
	Lubricating oils have been drained from equipment, "large oil systems" (e.g. syn gas and recycle compressor lube 	systems) have been soap washed.
	Oily water sewer and separation vessels have been washed with soap.
	Chemical storage vessels have been cleaned out or removed from the plant.
	Cooling tower wooden structures have been demolished and removed from the site.
	Industrial gases (e.g. calibration, welding, etc.) have been removed from the plant.
	Natural gas and oxygen lines to the facility have been blinded at the battery limits.
	All catalyst and resins have been removed from the plant.
	All firefighting equipment (e.g. fire water, monitors, extinguishers, foam, foam truck, etc.) remain in the facility 	and are serviceable.
	LEL monitoring equipment and the Whalen alarm system remain in service and are serviceable.
	Provisions are being made for necessary periodic inspection of fire extinguishers. (Should LEL test, alarm test, 	monitor inspection, be included?)
	Electrical power will remain to all facilities and will be serviceable.
	All current utilities to the Tank Farm/Barge Loading Facilities will remain and will be serviceable.
	The process area will be secured by a six foot high chain link fence with 20' wide gates on each side at drive in 	points.  The gates will be locked.
 	The oxygen compressor located in Sunoco area will be secured by a six foot high chain link fence with one pedestrian 	gate (locked).
	Pipe racks on the north boundary of the plant will be within the security fence, pipe racks on the west boundary will 	be outside the security fence.
	Admin and analyzer buildings will be locked and HVAC systems turned off.
	The warehouse will continue to house a reduced level of inventory with HVAC system in service.

	Please let me know if you need any additional information regarding the latest outage of the Methanol plant.

	Thanks,
		Tom   713-993-5604

-----Original Message-----
From: Clayton, Paul
Sent: Friday, November 09, 2001 8:57 AM
To: Meers, Thomas
Cc: 'dhuc@mcgriff.com'
Subject: RE: Enron--Methanol Plant Closure

Tom - any idea when you will have time to respond? Has this been shut-down or is it in process?
Please advise.

Thanks,

-----Original Message-----
From: Clayton, Paul
Sent: Wednesday, October 31, 2001 12:34 PM
To: Meers, Thomas
Cc: 'dhuc@mcgriff.com'
Subject: RE: Enron--Methanol Plant Closure

Tom -  thanks for advising.

Paul

-----Original Message-----
From: Meers, Thomas
Sent: Monday, October 29, 2001 8:13 AM
To: Clayton, Paul
Subject: RE: Enron--Methanol Plant Closure

	Paul,

	My apologies for not responding but I've been dealing with other issues and have been out of the office.  I'll try to
	respond this week.

	Thanks,
		Tom

-----Original Message-----
From: Clayton, Paul
Sent: Friday, October 26, 2001 9:14 AM
To: Meers, Thomas; Meers, Thomas
Subject: FW: Enron--Methanol Plant Closure

Tom:
Please provide accordingly so underwriters can be advised.
Thanks,

-----Original Message-----
From: Clayton, Paul
Sent: Monday, October 15, 2001 2:59 PM
To: Meers, Thomas; Meers, Thomas
Subject: FW: Enron--Methanol Plant Closure

Tom:
Pursuant to our conference call with David Huckabay, you were going to provide additional information regarding above. David has summarized this as outlined below.

Please provide at your earliest convenience.

Thanks,

-----Original Message-----
From: David Huckabay [mailto:DHUC@McGriff.com]
Sent: Friday, October 12, 2001 9:42 AM
To: Clayton, Paul
Cc: Sheryl Winslett; Alastair Muir-Taylor; Peter Magyar
Subject: Enron--Methanol Plant Closure

Paul,

Further to our discussion on 10/03/01, we understand that Tom Meers is
looking at providing additional information regarding the above.
Specifically, he is to provide a report advising Enron's plans for this
facility including the details of the "shut down" process, maintenance of
the facility, security at the site, etc. This information will be provided
to Enron Corp Property Package underwriters when received. Our current
understanding is that the facility has not been operating for the past 30
days and is preparing for a longer term shut down phase. We further
understand from our conversation that Enron is clearing the product streams
from the system and that the plant is currently "hydrocarbon free" thus
eliminating a substantial portion of the facility fire hazards. Also, we
understand that the tank farm and control building will continue to operate.
Enron is maintaining front gate security and is considering a separate
fencing around the process area.

Paul, we look forward to receiving the report as requested. Please advise
status.

Thanks and regards,

David Huckabay


As all of you know we are in the midst of the Fall recruitment process for
the Analyst and Associate Program - the Super Saturday process.  A major part
of the process is the Saturday interview which has been changed this year.
Interviewers now only review five candidates and the "offer " decision is now
completed on the same day as the interview.  This decision process is
facilitated by a member of Enron's executive committee and should be
completed by 3:30 pm.  ENA is one of the major users of the Analyst and
Associate pool and needs to be well represented at Super Saturday (which we
are not at this time).  The Program still needs additional interviewers and
the Office of the Chairman of ENA needs you to support the Program and the
interview process.  Signing up is now easier than ever and all you need to do
is access the following web site and fill in a few blanks.  The web site is
as follows:  http://axis.enron.com/notice/ssinvite.asp.  The dates of Super
Saturday's are listed below:

     Associates:   Analysts:
     October 28   November 4
     November 11   November 18
     December 2   December 9
     December 15

The selection of qualified candidates is important to ENA  and Enron.  Your
participation is needed, now especially for the October 28th and November 4th
dates.  Please respond accordingly.

Thanks,
Ted


---------------------- Forwarded by Carla Hoffman/PDX/ECT on 12/21/2000 09:31
AM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Pergher, Gunther" <Gunther.Pergher@dowjones.com>
     12/21/2000 07:43 AM

To: undisclosed-recipients:;
cc:
Subject: DJ PG&E: Util Has "Virtually Exhausted" Financial Resources

14:05 GMT 21 December 2000 DJ PG&E: Util Has "Virtually Exhausted" Financial
Resources
(This article was originally published Wednesday)
NEW YORK (Dow Jones)--With rate hike negotiations at a standstill and
forward supply talks in Washington yielding nothing, PG&E Corp.'s (PCG)
regulated utility subsidiary Pacific Gas and Electric Co. reiterated
Wednesday that it has "virtually exhausted its financial resources."
"We have been borrowing an average of $1 million per hour to pay for the
power we deliver to Californians," utility president Gordon Smith said in a
press release. "No company can continue to operate indefinitely under such
conditions."
Since May, PG&E has spent about $5 billion more on electricity than it gets
paid by its customers, but about a third of that amount has been paid into a
PG&E account for profits from the generators it still owns. The generation
profits, which for now are kept separate from other revenues, are expected
to be used to pay down the utility's debt.
PG&E and Edison International's (EIX) Southern California Edison have said
for two weeks that they could go bankrupt if they don't get a rate increase
immediately. Almost all of the utilities' bonds are recourse to the parent
companies.
Standard & Poor's analysts said Wednesday that the utilities' bonds will be
downgraded severely and immediately if a rate increase isn't agreed to this
week.
"Today's S&P conference call sends a message to Governor Davis and
California's leadership that now is the time for action," Smith said. "The
governor and the California Public Utilities Commission ultimately will
determine if Pacific Gas and Electric Company can continue to provide
essential services to the 14 million Californians in PG&E's service
territory."
The state's Public Utilities Commission is scheduled to meet Thursday on the
issue, and has listed on its agenda the possibility of increasing the
utilities' rates. California Gov. Gray Davis, state lawmakers and utility
executives were also working on a deal.
Those discussions were at a stalemate. There were no talks Wednesday, Davis
spokesman Steve Maviglio said, but the governor updated financial analysts
that consumers are inevitably going to face a rate hike.
Customers pay PG&E $54/MWh for energy, while SCE gets $66/MWh. Both
companies are paid additionally for transmission and distribution. The
utilities have told Davis that they need at least $20/MWh - a rate increase
of about 20% - more for electricity, but the governor wants to keep the
increase to about 10% of rates
S&P analysts said a 10% increase wouldn't be enough to keep the utilities
from defaulting, but the governor's office said an agreement wasn't likely
to be reached soon.
"There's not going to be a percentage deal announced," Maviglio said. "We're
going to ask for greater scrutiny of the utilities' claims."
Consumer groups dismissed the utilities' talk of bankruptcy as "crying
wolf."
"Edison wouldn't have issued a dividend on preferred stock last week if they
were going bankrupt," said Doug Heller of the Foundation for Taxpayer and
Consumer Rights.
But if they are really going bankrupt, the state should let them, Heller
said.
"Better a buyout than a bailout," Heller said. "They're not going bankrupt.
But if they do, the better outcome would be a public power system. Under
deregulation, (their inefficiency) it only gets worse."
Also Wednesday, negotiations on long-term supply contracts with western U.S.
electricity suppliers ordered by the Federal Energy Regulatory Commission
adjourned with little progress.
Such deals could have rescued the utilities from the astronomical prices of
the spot market, where power has been trading at $250 a megawatt-hour to
$600/MWh. Five-year supply contracts starting Jan. 1 have been trading at
about $80/MWh.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com

(END) Dow Jones Newswires 12-21-00
0905EST Copyright (c) 2000, Dow Jones & Company Inc

G_nther A. Pergher
Senior Analyst
Dow Jones & Company Inc.
Tel.  609.520.7067
Fax. 609.452.3531

The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
material.  Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you received
this in error, please contact the sender and delete the material from any
computer.


I live in a 3-unit building a block off Montrose, and we used to have a push
female panhandler who not only rang one doorbell, but all three and then stood
there and berated us for not opening up.  Brass they have!

Gayle Ramsey

Bob and Bob wrote:

> During the five years we have lived here, we have become accustomed to the
> folk who stop us every time we work in the yard, tell us fantastic tales of
> woe, and request handouts.  The stories, while creative, are usually not
> very well thought out.   Therefore, I question them carefully about the
> story, they don't have ready answers, and give up.   (I guess it is the
> result of many years of being a school administrator and investigating all
> manner of stories.)  However, we NEVER give them any money, as we know it
> will only bring more panhandlers.
>
> Christmas night, about 6 p.m., our doorbell rang.  It was a man, mature but
> youngish, with a story--he just moved into the neighborhood, his wife broke
> down on the freeway, and he needed $12 to get to her and rescue her and the
> children, etc..   We, of course, sent him on his way empty handed.
>
> I am amazed at how bold they are becoming--ringing doorbells to beg, no
> less!
>
> A friend downtown always offers to call the police to assist the panhandler
> with transportation to the relative in trouble, the broken-down car, etc.
> he says they always refuse and leave.  A bonus is that the requests of him
> are dwindling and he suspects there is a "network" where the locations of
> "soft touches" are circulated.
>
>
> To unsubscribe from this group, send an email to:
> emca-unsubscribe@egroups.com
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/

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---------------------- Forwarded by Kay Mann/Corp/Enron on 01/04/2001 03:39
PM ---------------------------

	From:  Ben F Jacoby @ ECT                           01/04/2001 03:38 PM

Sent by: Ben Jacoby@ECT
To: michael.o.sandridge@us.abb.com @ ENRON
cc: ben.jacoby@enron.com@ENRON, Kay.mann@enron.com@ENRON,
david.onuscheck@us.abb.com@ENRON, karla.hesketh@us.abb.com@ENRON, Fred
Mitro/HOU/ECT@ECT

Subject: Re: Contract comments

Mike:

Based on our telephone conversation, the only comment we will include in the
contract is 1 below, i.e. we are not going to change any commercial terms of
the deal. Thanks for your help and patience in this process.

Ben

michael.o.sandridge@us.abb.com on 01/04/2001 01:42:58 PM
To: ben.jacoby@enron.com, Kay.mann@enron.com
cc: david.onuscheck@us.abb.com, karla.hesketh@us.abb.com
Subject: Contract comments

Ben/Kay,
After reviewing the contract with Dave we found only a couple of points that
we
would like to mention;
1) 1.48 the Maximum Liability Amount should be $768,000 USD
2) The unit will not be delivered until the last 10% (ten percent) retention
is
paid and we will post the surety bond as shown in in Exhibit D
3) ABB would not buy back the unit except from Enron.

Please let me know if there is any way that we may further assist you.

MIKE


boy is she a pistol...!
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 09/08/2000
02:37 PM ---------------------------
   Merritt Thomas                09/08/2000 02:30 PM

To: Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: outline - today's mtg.

Jeff,

Attached is the outline from today's meeting.

If I could put in my two cents about my future boss, I'd say:  hungry
director... some good gas trader who's really sharp and excellent at what
he's doing, but he's never going to be king of the gas desk because there's
too many crown princes, and he'd rather side-step them all and push this LNG
forward with a vengence.  and if he's tired of Houston and not too much of an
arrogant bastard, that's a bonus.

I'm off to the pub.  These 7:30pm meetings don't do much for me.  Have a good
weekend.

Merritt


- cancelciaval.doc


Here are my standard rules for my witnesses on examination by opposing
counsel.  They are worth learning well ahead of time because they can be very
difficult to follow.  Memorize these and we'll do fine on cross (assuming we
even get any questions).

1.  Listen carefully to the question.
2.  Answer only that question; do not volunteer more.
3.  If you don't know for sure what the answer is, just say so.
4.  If you cannot answer a "yes" or "no" question with "yes" or "no," say so
and explain why.