State loses $25 million in power plays, ploys
It sold some energy for loss, gave some away
SF Gate News
October 25, 2001
<http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2001/10/25/MN182788.DTL>

Vote for public power no guarantee it will happen
Two propositions on S.F. ballot
SF Gate News
October 25, 2001
<http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2001/10/25/MN24526.DTL>

Power plant assessment to be taken over by state
Dow Jones Interactive
October 25, 2001

Ontario Electricity Market Inches Closer To Deregulation
Dow Jones Interactive
October 25, 2001

FERC to give states a role in RTO formation
Dow Jones Interactive
October 24, 2001

State loses $25 million in power plays, ploys
It sold some energy for loss, gave some away

Sacramento -- California sold electricity on a day it endured rolling blackouts and gave it away for free on another day earlier this year, according to documents that detail at least $25 million in power trading losses.

The state Department of Water Resources, which has stepped in as the power buyer for troubled utilities, said yesterday that it sold 224,871 megawatt hours of electricity during the three-month period ending in June. That represents about 1 percent of the total traded during that period.

Included were some sales for next to nothing -- or nothing at all.

On May 26, the state sold 500 megawatt hours of power for 50 cents apiece to the Los Angeles Department of Water and Power. The state paid an average of $271 a megawatt hour during May.

Two days later, the state gave away 786 megawatt hours of power to a British Columbia utility.

"We may not have had a buyer," said Oscar Hidalgo, spokesman for the Department of Water Resources. "It's not a storable product."

Giving the electricity away may have actually saved the state money, he said, because power grid rules can require buyers to pay a generator not to produce power if the system doesn't need it.

Other Department of Water Resources records show that the state also sold power March 19, when 1.2 million customers statewide lost electricity in rolling blackouts for about 90 minutes.

Officials said the fact that the state had to sell power that day was a reflection of how chaotic and fast-changing the electricity supply-and-demand situation was during the height of the energy crisis.

State officials say it is normal for any energy-buying operation to have a surplus of electricity occasionally. Turning into a seller from time to time, they say, has helped the state to drive down prices and steadily lower monthly power-buying costs.

But critics say the size of the losses is proof that the state locked in too much power at above-market rates in its early forays into the electricity- buying business.

"I suspect that these (losses) are continuing and that they are continuing because (the Department of Water Resources) bought more power than we needed during the cool summer," said Assemblyman John Campbell, R-Irvine.

Vote for public power no guarantee it will happen
Two propositions on S.F. ballot

If San Francisco voters decide Nov. 6 that a public agency is a better bet to provide cheaper, more reliable power than PG&E, it will be some time before the switch is flipped.

Propositions F and I, which only set up the first steps toward public control, also face possible legal challenges from Pacific Gas and Electric Co. and other large utilities that have spent hundreds of thousands of dollars campaigning against the measures.

There is also uncertainty about the costs. Neither measure has a price tag attached.

For more than two decades in San Francisco, PG&E has lobbied City Hall vigorously and used legal maneuvers to keep public power off the ballot. But the company was thwarted in the past year by a voter-backed initiative drive and a Board of Supervisors that advocates local control over the electrical system. The move gained steam with the state energy crisis.

If San Francisco voters take the initial steps toward public power on Nov. 6, they will join more than 2,000 public jurisdictions, including Sacramento, Los Angeles and Seattle, that provide electric power to about 40 million customers, accounting for 15 percent of the demand in the United States.

Proposition I would establish a municipal utility district, or MUD, in San Francisco and neighboring Brisbane that would be governed by an elected five- member board of directors. Measure-backers included Brisbane to meet a state requirement that more than one jurisdiction in a municipal utility district.

The directors after conducting a feasibility study, could decide to provide electricity directly to residents and businesses.

They then could use eminent domain to take over the electrical generation and distribution lines from PG&E and the San Francisco-owned Hetch Hetchy Water and Power agency.

The other measure, Proposition F, would set up a Water and Power Agency for San Francisco only. The agency would be governed by an elected seven-member board of directors and would replace the mayor-appointed Public Utilities Commission. The PUC currently provides electricity to municipal operations and water and sewer service to homes and businesses.

Like the MUD called for in Proposition I, the agency would have to conduct a feasibility study to review the costs and benefits of public power.

Then, with the consent of the Board of Supervisors, the agency could take over PG&E's electricity system. No such board consent would be needed under Proposition I. The agency also would have the ability to issue revenue bonds under $100 million without approval by supervisors or voters. Anything over that amount would be subject to a referendum.

The Prop. F plan is also designed to promote conservation efforts and renewable energy.

Props. F and I both rely on elected directors, who ultimately will decide whether to create a public power system.

The board would also set the rates and have control over everything from the terms for buying electricity to whether to use more renewable energy sources, such as wind, hydroelectric and solar power.

If both measures pass, Prop. I will take priority. Supervisors placed Prop. F on the ballot as a backup -- one they believe could better withstand the expected legal challenges from PG&E.

The utility waged a 23-year battle to beat back public power in Sacramento - - and eventually lost.

Opponents of the S.F. public power effort, with PG&E at the lead, already have spent more than $650,000 on the campaigns against the measures with more money expected in the coming weeks. AT&T and Pacific Bell also have been big contributors, fearful that the MUD directors will use state laws to take over the phone and communications utilities in San Francisco, as well.

Public power critics say there are too many unknowns in the proposals, chief among them the cost.

City Controller Ed Harrington noted that a disputed 1997 study commissioned by the San Francisco PUC estimated the value of PG&E's distribution system at $800 million. Other estimates have ranged from $300 million to $1 billion.

"A lot of people are not happy with PG&E. But neither of these measures can guarantee that they're going to solve the state's power problem, or provide us better, more reliable or cheaper service," said Jim Mathias, vice president of public affairs for the San Francisco Chamber of Commerce. "The unknown could be worse."

Proponents, however, say a public power system answers to voters and ratepayers, not corporate shareholders. Historically, such public power systems have had lower rates.

"The only unknowns are ephemeral because we've seen through the Sacramento MUD, the Alameda MUD and the Los Angeles public power authority that rates are lower and service is better," said Board of Supervisors President Tom Ammiano, a public power advocate.

  _____

THE MUD MEASURES

San Francisco voters face two public power measures on the Nov. 6 ballot. .

-- PROPOSITION F

Placed on the ballot by the Board of Supervisors, the measure would:

-- Abolish San Francisco's Public Utilities Commission and replace it with a Municipal Water and Power Agency. The agency would be governed by an elected seven-member board of directors.

-- Authorize the agency to take over the existing Hetch Hetchy Water and Power system, which is now operated by the city PUC.

-- Order a feasibility study to determine the costs and benefits of providing public power to San Francisco consumers.

-- Operate with the goal of ending Pacific Gas and Electric Co.'s control of electricity distribution in San Francisco and create a public power system that would sell electricity directly to residents and businesses. It also would continue to provide water and sewer service, as the local PUC has.

-- Allow the agency to issue revenue bonds without approval by the Board of Supervisors or voters. Any bond issue of more than $100 million would be subject to referendum.

-- Require the new agency to maintain some ties to City Hall. For example, the Board of Supervisors would have to approve the use of eminent domain to take over PG&E's distribution lines and generation facilities.

.

-- PROPOSITION I

Placed on the ballot by initiative, the measure would:

-- Establish a Municipal Utility District for both San Francisco and Brisbane. The district would be run by an elected five-member board of directors. Candidates for the director posts also are on the Nov. 6 ballot.

-- Give directors the authority to determine whether to take over PG&E's electrical and distribution system in San Francisco, as well as the Hetch Hetchy system, in order to provide publicly owned power directly to ratepayers.

Requires a feasibility study of such an action. Subsequent voter approval of specific projects probably would be required.

-- Allow the district to investigate whether it should provide water, transportation, garbage collection, telephone, communications and sewer services, as allowed by state law governing municipal utility districts.

-- Give the MUD power as a state agency, independent of the Brisbane and San Francisco local governments, allow the directors to undertake eminent domain proceedings and provide authority to issue revenue bonds.

Power plant assessment to be taken over by state

Over protests from cities that fear a sharp loss in revenue, the state Board of Equalization voted yesterday to take over the appraisal of power generators but postponed doing so for one year.

The delay until Jan. 1, 2003, is designed to give the Legislature time to fix what opponents call a "fatal flaw" in the plan.

Under the old rule, property tax revenue from power plants was assessed by the counties, with the property tax going to the redevelopment agencies in the city the plant is situated. The board changed that so that the state now assesses the plant, spreading the money out across the county.

That means big losses for a city such as Pittsburg, which has been fighting the plan. The city -- which has two new power plants -- expected $10 million in property tax revenue. With the changes, that will be reduced to just $400,000, said John Knox, an attorney hired by the city.

Pittsburg Vice Mayor Frank Aiello said the property tax revenue was one reason the city agreed to have the plants built in its community.

"You'll see more and more power plants not being sited," he told the board. "There will be an even bigger energy crisis."

He said the move will have a "devastating effect" on the city's redevelopment agency.

Supporters of the plan believe power generators have gotten off too easy under local assessors. That is because counties are barred from increasing assessments more than 2 percent a year under Proposition 13.

Ontario Electricity Market Inches Closer To Deregulation

CALGARY -(Dow Jones)- The province of Ontario opened another door to electric deregulation Wednesday, issuing tough new emission standards for industry and lifting a two-year moratorium on the sale of provincially owned coal-fired generation plants.

Loosening Ontario Power Generation's hold on the bulk of the province's power plants is critical to launching an electricity market slated to open by May 2002 - after three delays in as many years.

"Putting additional generation assets in the hands of competition to OPG is one of the primary objectives," said John Dalton, director at Navigant Consulting Inc. in Toronto.

The utility has five coal-fired power plants, including the 4,000-megawatt Naticoke and 1,975-MW Lambton stations where the government has accepted OPG installing selective catalytic reduction units to cut down smog, rather than converting to other fuels.

"Right now, without putting these generation assets under the control of competition, essentially we don't have a power market, we have a regulatory scheme," Dalton said.

Sale of the plants had been put on hold until the environment ministry finalized its anti-pollution regulations. The new rules issued Wednesday by Environment Minister Elizabeth Witmer will cap emissions by fossil fuel-burning generation stations starting Jan. 1, and will be fully implemented by 2007.

Under the government's plan for deregulation, OPG must sell or lease about 4,00 MW of non-nuclear power within 42 months of market opening. The utility owns 9,700 MW of fossil-fuel capacity, 8,728 MW of nuclear power and 7,309 MW of hydroelectric power.

"Lifting the moratorium goes a long way toward OPG moving quickly to its decontrol program, and preparing for an open market," OPG spokesman John Earl said

This latest move has the industry optimistic that the provincial government could open electricity markets by early rather than late spring.

"We're working on being ready for March 1," an industry source told Dow Jones Newswires. "There will be lots of supply on the market because the economy is slower than anticipated and demand is down. That's what the government wants, lots of supply and some choice for consumers."

A separate regulation finalized Wednesday ordered OPG's aging Lakeview plant to stop burning coal by 2005.

The edict gave new life to the four units that faced being completely shut down, but still doesn't make them that attractive to buyers, Dalton said.

Lakeview operates about 30% of the year at a lower fuel cost than cleaner-burning natural gas plants. Converting to an alternative fuel will increase cost on units that are last on the fossil fuel plant list to be dispatched - meaning they will run even fewer hours and at lower rates.

FERC to give states a role in RTO formation

WASHINGTON, Oct 24 (Reuters) - U.S. federal energy regulators on Wednesday pledged to create a new body to cooperate with state officials on the planning of regional transmission grid combinations after complaints that they were left out of the process.

The Federal Energy Regulatory Commission, which oversees the country's power grid operators, has ordered utilities in the Southeast, Northeast, Midwest and West to combine their assets into a handful of regional transmission organizations (RTOs) by the end of the year.

The agency has pushed hard to create the RTOs to avoid a repeat of the power crisis in California last winter, in which the antiquated U.S. grid prevented more power from flowing into the state.

FERC commissioners acknowledged on Wednesday that some changes were needed to address criticism from state utilities regulators that they were left out of the RTO rule-making process.

STATES GET SEAT AT THE TABLE

FERC Commissioner Nora Mead Brownell, a former Pennsylvania regulatory official, proposed creating a regional council that would share authority between FERC and states on setting RTO policies.

Citing states' confusion about FERC's direction and inconsistent internal agency communication, Brownell, in a memo to commissioners, said the council "can provide the necessary flexibility that we will likely need moving forward to RTO formation."

The request was made by David Svanda, commissioner of the Michigan Public Service Commission, on behalf of six other Midwest states at FERC's workshop on RTOs last week.

The move is "a ceding of jurisdiction ... to state regulators for us to co-govern the process with them," FERC Chairman Pat Wood told reporters after the meeting. Wood previously headed Texas' state utility regulatory agency.

Of state commissions, Wood said "they need to be invited with a nice seat at the table, not just standing at the door taking tickets."

COST-BENEFIT ANALYSIS PROMISED

FERC also promised to prepare a formal cost-benefit analysis of RTOs for states and consumers, after some states raised concerns that the costs did not justify the benefits. The agency did not say when the study would be completed.

On Tuesday, the New York Independent System Operator (ISO) released its own cost-benefit study, which asserted the creation of a large Northeastern RTO could boost consumer power bills by some $90 million a year.

The non-profit New York ISO would also be put out of business by a regional for-profit RTO.

However, a separate study issued last month by energy firm Mirant Corp , a supporter of RTOs, concluded that a Northeastern RTO would save consumers $440 million annually.

At the meeting, FERC commissioners heard staff presentations on RTO development progress in the Southeast, Northeast and Midwest.

But few new details emerged on the ultimate direction FERC will take in guiding utilities.

Wood said that more specifics would be available at the next meeting on Nov. 7, just a month ahead of FERC's Dec. 15 deadline for RTO membership.

Under FERC's plan, the RTOs would be for-profit groups in the U.S. Northeast, Midwest, Southeast and West. Each region would combine public utility transmission facilities to provide open access, more reliable power and lower rates for consumers.


These are the latest figures I have - I'm so sorry for the delay! I'm calling
Willie Harrell in Global Risk right now to determine why these prices are not
yet in pub posting and how we can come up with a more reliable system.

Kate
---------------------- Forwarded by Kate Symes/PDX/ECT on 04/03/2001 12:32 PM
---------------------------

djenergy <djenergy@dowjones.com> on 04/02/2001 04:12:53 PM
To:
cc: "Onukogu, Ernest" <Ernest.Onukogu@dowjones.com>, "Kogut, George"
<George.Kogut@dowjones.com>

Subject: COB

 - Cob.xls
---------------------- Forwarded by Kate Symes/PDX/ECT on 04/03/2001 12:32 PM
---------------------------

djenergy <djenergy@dowjones.com> on 04/02/2001 04:13:19 PM
To: undisclosed-recipients:;
cc:

Subject: SP15

 - SP 15 pages.xls
---------------------- Forwarded by Kate Symes/PDX/ECT on 04/03/2001 12:32 PM
---------------------------

djenergy <djenergy@dowjones.com> on 04/02/2001 04:13:13 PM
To:
cc: "Onukogu, Ernest" <Ernest.Onukogu@dowjones.com>, "Kogut, George"
<George.Kogut@dowjones.com>

Subject: Palo Verde

 - Palo.xls
---------------------- Forwarded by Kate Symes/PDX/ECT on 04/03/2001 12:32 PM
---------------------------

djenergy <djenergy@dowjones.com> on 04/02/2001 04:13:00 PM
To:
cc: "Onukogu, Ernest" <Ernest.Onukogu@dowjones.com>, "Kogut, George"
<George.Kogut@dowjones.com>

Subject: MeadMarketplace

 - MeadMktplace (2).xls
---------------------- Forwarded by Kate Symes/PDX/ECT on 04/03/2001 12:32 PM
---------------------------

djenergy <djenergy@dowjones.com> on 04/02/2001 04:13:05 PM
To:
cc: "Onukogu, Ernest" <Ernest.Onukogu@dowjones.com>, "Kogut, George"
<George.Kogut@dowjones.com>

Subject: Mid-Columbia

 - MidC.xls
---------------------- Forwarded by Kate Symes/PDX/ECT on 04/03/2001 12:32 PM
---------------------------

djenergy <djenergy@dowjones.com> on 04/02/2001 04:13:10 PM
To:
cc: "Onukogu, Ernest" <Ernest.Onukogu@dowjones.com>, "Kogut, George"
<George.Kogut@dowjones.com>

Subject: NP15

 - NP 15 pages.xls


Mark,

I am not sure I follow this but I will attempt to present my interpretation
of your note.

I am only restrained from trading those items in clause one if I am
responsible for trading them at Enron, and "equities" falls under
"securities" in clause one.
"Equities" fall under clause one and are therefore not included in clause
two. Therefore, since I do not trade equities for Enron, I can trade them on
my personal account.

Brent Crude futures, I would argue, are "financial instruments," included in
clause one. I am not responsible for trading them for Enron. If they fall
under clause one they are not included in clause two. Does this mean, since
they are not in clause two and I do not trade them for Enron, I can trade
them on my personal account?

Perhaps you could give me a call, +44 207 783 4928.

Thank you,

Dave

From: Mark Taylor on 10/11/2000 15:56 CST
To: Cassandra Schultz/NA/Enron@ENRON
cc: David Redmond/LON/ECT@ECT, Paul Simons/LON/ECT@ECT, Peter
Crilly/LON/ECT@ECT, Richard Lewis/LON/ECT@ECT

Subject: Re: issue w/compliance ertificate

This issue was much easier when all we traded were energy commodities,
interest rates and currencies. The older versions of the policy provided that
no Enron employee may trade any energy commodity for the account of anyone
other than Enron.  Beyond that, no Enron employee could trade a commodity
which was within their area of responsibility.  For example, I was not
permitted to trade natural gas futures for my own account but, since interest
rates and currencies are not within my area of responsibility, I could trade
them.  As the scope of our trading activities expanded it became more
difficult to identify the scope of the company's concern, much less to
articulate it.  We did however take a stab at it and the result is below.
This may be an area which could stand some clarification in the next version
of the Policy.

For now, I would suggest that the term "security" highlighted below should be
read to include equities and therefore not one of the commodities covered in
the second numbered clause (i.e. the word "other" refers to items other than
those listed in clause (i)).  The result is that an Enron employee who does
not trade financial instruments, securities, financial assets or liabilities
for Enron may trade them for his or her own personal account.  To take this a
step further, one could argue that an employee who trades the equities of
energy companies for Enron should not trade energy company equities for his
or her own account but could trade other equities - if it were me, I would
certainly make sure that Ted Murphy agreed with my analysis before I did it.
Of course, a wide variety of commodities remain clearly off limits for
personal trading - metals, ag commodities, bandwidth, freight, lumber, among
many others - for all employees.  As I remember it, this was done purposely
and if anyone disagrees with the scope of the policy they would be wise to
discuss the matter with the RAC Group as they make suggestions for Policy
revisions to the Enron Corp. board.

Employee Trading.  No employee of any Enron Business Unit may engage in the
trading of any Position for the benefit of any party other than an Enron
Business Unit (whether for their own account or for the account of any third
party) where such Position relates to (i) any financial instrument, security,
financial asset or liability which falls within such employee,s
responsibility at an Enron Business Unit or (ii) any other commodity,
included in any Commodity Group.

	Cassandra Schultz@ENRON
	11/08/2000 08:32 AM

		 To: Mark Taylor/HOU/ECT@ECT
		 cc: David Redmond/LON/ECT@ECT, Richard Lewis/LON/ECT@ECT, Peter
Crilly/LON/ECT@ECT, Paul Simons/LON/ECT@ECT
		 Subject: issue w/compliance ertificate

To: Mark Taylor,  Legal counsel for Market Risk Management

Mark - would you please clarify this issue for us?

Thank you,
Cassandra Schultz.
---------------------- Forwarded by Cassandra Schultz/NA/Enron on 11/08/2000
08:26 AM ---------------------------

David Redmond@ECT
11/08/2000 03:05 AM
To: Cassandra Schultz/NA/Enron@ENRON
cc: Araceli Romero/NA/Enron@Enron, Richard Lewis/LON/ECT@ECT, Peter
Crilly/LON/ECT@ECT

Subject: Re: 3rd Request - RESPONSE NEEDED ASAP - Risk Mgmt. Compliance
Certificate

Cassandra,

Richard asked me to review this document before the traders on the UK Gas
Desk would sign it.

The UK gas desk adheres to all the risk management requirements of this
document. However, in Section VII , Miscellaneous, Employee Trading, the
document would appear to prevent any of us trading equities (amongst other
commodities) on our personal account as Equity Trading is a Commodity Group.
We are unsure if this is the aim of this agreement.

We have asked our compliance officer, Paul Simons to clarify the impact of
this clause for us.

We are not ignoring the document, we are waiting for clarification.

Thank you,

David Redmond


Did you get BattleGround Galatica yet?


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You caught that.  I guess that's fair.   We would likely leave around 1:00 pm CPT which would put us in Portland at 2:30 (West time).

Does this work?

 -----Original Message-----
From: 	Belden, Tim
Sent:	Wednesday, June 13, 2001 10:36 AM
To:	Presto, Kevin M.
Subject:	RE: zufferli

what if we did a loop so that we split the flying pain.

houston to portland	east traders
portland to cabo		east traders and west traders
cabo to houston		east traders and west traders
houston to portland	west traders

 -----Original Message-----
From: 	Presto, Kevin M.
Sent:	Wednesday, June 13, 2001 8:17 AM
To:	Belden, Tim
Subject:	RE: zufferli

I talked with Lavo and we agreed Herndon and Black should go as well.   I think Zufferli would make 14, but we should be able to squeeze.

I am calling aviation today and I plan on arranging the following:

	1) Plane goes to Portland and picks up your guys at 9:00 am on Friday 6/21 (or 6/28 if more notice is required)
	2) Plane picks up Houston guys at approx. 3:30-4:00 pm (Houston time)
	3) We arrive in Cabo around 7:00 pm.
	4) Plane returns to Houston 6:00 pm Sunday
	5) Plane continues to Portland and arrives around 8:00 pm (Portland time)

Let me know if this works for you guys.

 -----Original Message-----
From: 	Belden, Tim
Sent:	Wednesday, June 13, 2001 10:06 AM
To:	Presto, Kevin M.
Subject:	zufferli

should he be on the trip?  we could make him fly to portland.  to ease the travel he could spend a day or two working out of our office.


Good Afternoon,
	The following two counterparties are requesting a netting agreement with ENA: Kennedy Oil, and Independent Production Company, Inc.  The netting agreement should cover physical sales and purchases, and MTM.  These are both standard netting agreements, not master netting.  Both companies sell us gas under a first purchaser agreement and / or GTC's, and will begin buying back gas.  For Independent the contract # is 96023736, and for Kennedy 96052164.  I have contact names and phone numbers if you need them.  Give me a call with any questions.

Thanks,

Max Sonnonstine


FYI
FERC staff are visiting the Enron power trading operation this Thursday and
having lunch with Jeff Skilling.  Expected attendees are Dan Larcamp, Scott
Miller, Fernanda Young, Tom Herlihy, and Charles Whitmore.  Thought you might
be interested in EPMI's talking points.

Agenda and list of participants

Enron INTERNAL talking points


Zou,
I am requesting a log-in for clicktrip.com please.
I arrange travel for the following employees, and will need access to their
travel profile.

Thank you,
 Jill Chatterton

Power Trading		Risk Management		IT Group
Kysa Alport 		Fran Change			Lei Chen
Tom Alonso		Samantha Law			Dan Maxwell
Bob Badeer		Heather Dunton			David Poston
Mike Driscoll		John Postlethwaite		Richard Schweiger
Mark Fischer						Michael Tully
Scott Freeman		Tracy Ngo
Chris Mallory		Susan Rance			Real Time
Jeremy Morris						Todd Bland
Matt Motley		Pre-Schduling			Craig Dean
Phil Platter		Diane Cutsworth			Mark Guzman
Jeff Richter		Lisa Gang			Leaf Harasin
Holden Salisbury	Donald Robinson		Eric Linder
Diana Scholtes		Stacy Runswick			Steven Merris
Mike Swerzbin		Cara Semperger			Bert Meyers
			Susie Wilson			David Porter
							Ryan Slinger
							Geir Solberg
							Kate Symes
							Bill Williams III


I doubt that this is worth the trouble (i.e. running it through a conflict of
interest check, ensuring no liability for actions taken on the advice, etc).

From: Sherri Sera/ENRON@enronXgate on 06/21/2001 10:13 AM
To: Steven J Kean/NA/Enron@Enron
cc: Joannie Williamson/ENRON@enronXgate

Subject: FW: Follow up -- Council of Energy Advisors

Steve, we have no record of receiving the original invitation, but is this
anything you would recommend?  Please advise.  Thanks, SRS

 -----Original Message-----
From:  <mobrien@glgroup.com>@ENRON
[mailto:IMCEANOTES-+3Cmobrien+40glgroup+2Ecom+3E+40ENRON@ENRON.com]
Sent: Thursday, June 21, 2001 10:07 AM
To: sreinar@enron.com
Subject: Follow up -- Council of Energy Advisors

Dear Jeffrey,

I would like to follow up on the email regarding a personal invitation to
join the Council of Energy Advisors that I recently sent you.

I wanted to see if there are any additional questions I can
answer. To reiterate, the Council is an organization of top engineers,
corporate representatives, and energy experts that we pay(e.g. $250/hr) to
consult via phone and email for our client base of more than 90 investment
managers.

I feel that your background and expertise would be an asset to
the Council. Please feel free to register online at
http://www.thecouncils.com/peapp.asp?copaid=75344579&invid=56 (just a quick
5-minute form).  Also, you can learn more about our work at
www.thecouncils.com.

Thanks for your consideration, I look forward to working with you. Again,
please contact me anytime if if you have any remaining questions.

Best regards,
Matt

==================
Matthew O'Brien
Gerson Lehrman Group
Council of Energy Advisors
11 E. 44th St., 11th floor
New York, NY 10017
(212) 838-6900 ext. 265

=============================================================
CONFIDENTIALITY NOTICE: This e-mail contains information that is privileged
and confidential and subject to legal restrictions and penalties regarding
its unauthorized disclosure or use.  You are prohibited from copying,
distributing or otherwise using this information if you are not the intended
recipient.  If you have received this e-mail in error, please notify us
immediately by return e-mail and delete this e-mail and its attachments from
your system.  Thank you.


Melanie Mills
616 NW 73rd Street
Seattle, WA 98117
mmills@u.washington.edu

To Mr. Ken Lay,

I'm writing to urge you to donate the millions of dollars you made from 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.

Indeed, 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.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

Sincerely,

Melanie Mills


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I don't even like thinking about the last time I had my vanadium checked.

From:	V. Charles Weldon/ENRON@enronXgate on 05/18/2001 03:28 PM
To:	Matthew Tezyk/ENRON_DEVELOPMENT@Enron_Development, Mike Coleman/ENRON@enronXgate
cc:	Mark Breese/ENRON@enronXgate, Ed McMichael/ENRON@enronXgate, Mathew Gimble/HOU/ECT@ECT, David Fairley/ENRON@enronXgate
Subject:	Fuel Oil Vanadium Spec

As I previously shared, the result for vandium in the low-sulfer diesel (#2 fuel oil) came back at <0.1 ppm versus the "spec" of <0.05 ppm.  I just talked to the lab supervisor at Saybolt whom performed the analysis; and according to him there is no practical way of measuring the vanadium content more precisely than within one-tenth of a ppm.

The only way he knows of is to use a NMR (nuclear magnetic resonance) machine that NASA uses to analyze rocket fuel.  He is not sure whether or not the government would allow use of such a machine but estimates that, if they did allow, it could cost upwards of $10,000.

Please let me know if we should pursue this matter any further.

Thanks,

Charlie


-----Original Message-----
From: 	Enron Announcements/Corp/Enron@ENRON [mailto:IMCEANOTES-Enron+20Announcements_Corp_Enron+40ENRON@ENRON.com]  On Behalf Of ClickAtHome@ENRON
Sent:	Friday, October 05, 2001 2:17 AM
To:	Clickathome Participants@ENRON
Subject:	Important Information About Security & ClickAtHome

Dear ClickAtHome Participant,

ClickAtHome is interested in making sure you have the latest security tools available to you.  As part of the ClickAtHome program, you may download and update Norton Anti-Virus and BlackICE Defender software from the ClickAtHome Portal.

Norton AntiVirus software repairs computer virus infections automatically.  It scans and cleans your hard drive, diskettes and both incoming and outgoing email.
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Instructions for accessing the Portal and downloading the software are provided below.
If you have any questions or wish to provide feedback, please email clickathome@enron.com.  Thank you for your participation in ClickAtHome.
The ClickAtHome Team!
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To download the software:
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2)  Logon to the Portal with your personally created Portal User ID and Password, or create a new account if you have not created a user ID and password by selecting "Create a NEW Account" at the top left corner.  The Portal User IDs and Passwords are created by you.  The Enron Help Desk is not able to assist with Portal support, but if you need any assistance, please send an email to "clickathome@enron.com".
3) Once you have logged on, select "Tools" from the top menu bar.
4) Under the "Secure Download" heading, click on "BlackICE" or "Norton" and log on to the download page using your SAP ID and Date of Birth.
5) Follow the directions provided on screen.


Shirley,

Please, register me for this.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 01/04/2000
07:16 AM ---------------------------

Energy Institute <energyinstitute@UH.EDU> on 01/03/2000 01:09:24 PM
To: energyinstitute@UH.EDU
cc:  (bcc: Vince J Kaminski/HOU/ECT)
Subject:

Dear Colleagues:
With the passage of Senate Bill 7, Texas is moving forward with electric
power restructuring.  What will the new marketplace look like?  How will it
function?  How will existing business opportunities be affected, and what
new ones are likely to emerge?  Join us for a comprehensive two-day
workshop January 12-13, 2000 that addresses these issues and accommodates
both new and experienced professionals.  Hosted by the Energy Institute at
the University of Houston's College of Business Administration, the
workshop features an introductory day that will refresh participants on the
basics of the electric power market and key aspects of the restructuring
process in Texas and the U.S.  The second day targets advanced issues in
the emerging marketplace and case studies for practicioners.  The workshop
will be held at the Center for Executive Development at the UH-CBA.
Instructors are Ms. Dottie Anderson and Mr. Jim Stanton, each with
extensive experience in the power industry and ERCOT implementation, and
Dr. Michelle Michot Foss, director of the Energy Institute (see
biographies, following workshop details).  To register, return the form
below with your information.  Payment, or an indication of payment, must be
received by January 11.  For more information, contact
energyinstitute@uh.edu or telephone 713-743-4634.  This workshop is
appropriate for new and/or advanced professionals in operations, trading,
marketing, planning, public and regulatory affairs and in related fields
such as law and accounting.

NEW ERA IN ELECTRIC POWER VALUE CREATION
Energy Institute
University of Houston -- College of Business Administration
Center for Executive Development Facilities
Melcher Hall -- Main Campus

REGISTRATION (RETURN BY JANUARY 11, 2000 WITH PAYMENT OR INDICATION OF
PAYMENT)
Workshop Pricing:
Full course, January 12 and 13 -- $950 per person (government agencies and
nonprofits, $475 per person); for groups of 3 or more from a single
organization, $900 per person ($425 for government agencies and nonprofits)
Advanced audiences, January 13 only -- $700 (government agencies and
nonprofits, $350); for groups of 3 or more from a single organization, $650
per person ($375 for government agencies and nonprofits)
Fee includes all workshop materials, meals, refreshments and parking at
UH-CBA.  Sorry, we do not accept credit card payment.  Lodging for
out-of-town participants is available at the University of Houston Hilton
Hotel at your own cost.  You may contact the Hilton at 713-741-2447 for
reservation information.

Name(s) and Title(s):

Organization:

Address:

Telephone/Fax/E-mail for Contact:

Total Payment and Form of Payment:

CEU Credit Desired (yes/no):

WORKSHOP DETAILS
January 12, 2000 -- Principles
8:30 - 9:30 Introduction and Workshop Overview
9:30 - 10:30 Regulatory Framework: National Electricity Reliability Council
(NERC), Federal Energy Regulatory Commission (FERC), and Electric
Reliability Council of Texas (ERCOT)
10:30 - 10:45 Break
10:45 - 12:00  Operational, Marketing and Trading Basics
12:00 - 1:00 Lunch
1:00 - 1:30 Texas Senate Bill 7 Overview
1:30 - 2:00 Public Utility Commission (PUC)-Texas Basic Rule Making
2:00 - 3:00 ERCOT Independent System Operator (ISO) Functions and Governance
3:00 - 3:15 Break
3:15 - 5:00 ERCOT Issues By Committee
*Restructuring Policy Development
*Ancillary Services
*Single Control Area
*Settlement/Registration
*Congestion Management
*Standard Interconnection Agreement
5:00 - 6:30 Social

January 13 -- Advanced Application
8:30 - 12:00 Regional Transmission Organizations (RTOs) and the FERC Notice
of Proposed Rulemaking (NOPR)
Future of ISOs
Status of the NOPR, Public Comments Made
ISOs Under Development: ERCOT, Midwest, Desert Star
12:00 - 1:00 Lunch
1:00 - Case Studies
*Changing Electricity Providers: Town Hall Issues
Bringing together the elements of regulatory activity, market power and
restructuring to the retail level, this exercise allows the participants to
make active decisions as our experimental "town" weighs the option of
separating from its traditional electricity provider and treading the
waters of competition. Our group will assume roles centered around
"regulators," "power marketers," the present "investor owned utility" and
the "town" itself. A town meeting will be convened in which each entity is
allowed to present their issues in an effort to persuade municipal
decision-makers that theirs is the best option. Embedded in the exercise is
the regulatory and operational framework that is built into the modules
leading up to this participatory segment. Frequent references to the basic
materials provided to the workshop participants will be encouraged in the
process of moderating discussions that the workshop facilitators will
implement.
*Congestion Management
Congestion management is one of the most critical components of ERCOT
implementation.  A number of approaches exist for pricing electricity
during periods of high demand.  Each methodology bears important
consequences for both providors and customers.  Workshop participants will
participate in construction of a virtual transmission grid and experiment
with different methods of managing congestion.
4:00 Re-cap, Q&A

INSTRUCTORS
Ms. Dottie Anderson
Ms. Anderson has over 19 years experience in the energy industry with
extensive experience in federal and state regulatory policy analysis and
advocacy on behalf of natural gas and electric companies.  She is currently
President and Managing Principal of consulting firm specializing in policy
development and strategic analysis and planning for the electric and
natural gas industries.  Ms. Anderson served as member of steering
committee responsible for coordinating the stakeholder process in the PJM
restructuring meetings and also actively participated in developing the
governance structure for PJM.  She was a member of  Stakeholder Group that
designed wholesale market rules for Texas in 1996 and currently serves as
one of the Power Marketer Segment representatives on the ERCOT Technical
Advisory Committee and Chair of  the Congestion Management Working Group
developing a congestion management mechanism for use when Texas begins its
retail access pilot in June 2001.  She has participated in  ERCOT Technical
Advisory Committees Ad Hoc Committees on Transmission Adequacy and
Possible Impacts of Future Electric Market Changes on the Independent
System Operator and now involved in the broad-based stakeholder processes
to restructure markets in Texas in response to legislation passed in May
1999.  She also is Chair of NERC Market Interface Committee a Standing
Committee addressing commercial business practices and standards in the
electric industry and their interface with reliability. In collaboration
with ERCOT ISO Staff, Ms. Anderson developed training seminar for
conducting business in ERCOT under the PUCT's Open Access Transmission
Rules and participated as a course instructor on the transition from NERC
to NAERO. She also participated as a course instructor in the annual ERCOT
ISO Operator Training Program. She participated as a member of Government
Interface Issues Task Force, a group participating in NERC restructuring
process by addressing issues related to federal legislation and
participation by Canada in a North American self-regulation reliability
organization.  Ms Anderson is a Certificated Search Conference Manager by
New Mexico State University for completion of training in Designing and
Managing Search Conferences and Participative Design Workshops conducted by
Dr. Merrelyn Emery, Australian National University.

Mr. Jim Stanton
Mr. Stanton has 15 years in the electric power industry, divided between
state agencies, investor owned utilities and power marketing.  His
background in generation, transmission and systems operations has proven
valuable in the constantly changing world of power. Combining a BS in
management with a working knowledge of the commercial electric power
business gives Mr. Stanton a unique view of the operational challenges of
the industry, and most especially, the people who make it work on a daily
basis. Mr. Stanton is a certified System Operator in the Southwest Power
Pool and with the North American Reliability Council. He is currently
involved with policy development in both ERCOT and the Midwest Independent
System Operator.

Dr. Michelle Michot Foss
Dr. Michot Foss has been an analyst of U.S. and foreign energy and non-fuel
resource development and environmental issues for nearly 21 years.  She has
a particular focus on policy and regulatory frameworks for energy
commercialization and energy business enterprise strategy and firm/industry
structure.  Dr. Michot Foss has been involved extensively in research and
consulting on North American natural gas and electric power restructuring
and convergence and development of continental cross-border trade and
related issues.  She is participating in ERCOT technical advisory committee
workshops and committee processes for SB7 implementation.  Dr. Michot Foss
speaks and writes frequently on energy issues and energy sector
restructuring in North and South America, Western Europe, Japan and other
world regions.

ABOUT THE ENERGY INSTITUTE
The Institute is engaged in business and public policy issues associated
with commercial energy development worldwide.  Major portfolio areas for
the Institute are worldwide gas and power market development (with emphasis
on North America, the northern Andes, western Europe, the Black
Sea/Caucasus/Caspian region and East Asia), Best Practices in Energy Sector
Reform, special topics in energy technology and markets and energy
commodity trading and marketing and The Energy Business Enterprise of the
Future.  In addition, the Institute provides research and training
initiatives in the U.S., Canada, Mexico and Latin America, China, the NIS
region, and other countries and is developing both a non-degree
professional commercial practices program and an international training
program on oil and gas sector reform and commercial development.  Faculty
members are drawn from Business Administration, Law, Economics, Geosciences
and Engineering.  The Institute is underwritten by leading oil, gas and
electric power companies and consultancies.  With the Center for Global
Studies at the Houston Advanced Research Center, the Institute published
the Guide to Electric Power in Texas as a public service for electric power
restructuring.  The Guide is recognized as one of the most widely used
resources by business and government participants.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CBA Energy Institute
University of Houston
4800 Calhoun, MH320
Houston, TX 77204-6283
(713) 743-4634
fx: (713) 743-4881
email:  energyinstitute@uh.edu
web:  www.uh.edu/energyinstitute


Just a reminder:  The Industrial QBR is scheduled for Monday as follows:

   DATE:   8/14/00
   TIME:    1 PM - 4 PM
   PLACE:   EB 3321

Please mark your calendars for this meeting.


Dear ALJ Biren:

Kern River Gas Transmission Company plans to offer two exhibits in the form
of the Direct and Rebuttal Testimony of Kirk T. Morgan, for which exhibit
numbers have not yet been established.

I initially estimate the following cross-examination time:

Richard Hall, PG&E         .5  hours

There may be additional witnesses, depending on information at the
prehearing
conference.  Please let me know if you have questions.

Mark C. Moench
801/584.7059


This is an automatic confirmation of the order you have placed using IT
Central.

Request Number:   ECTH-4S5TZN
Order For:               Jeff Youngflesh

Compaq iPAQ handheld PC, H3650 Pocket PC.  CPQ Item number:  170294-001.
Compaq iPAQ PKT PC Expansion Jacket for H3650.  CPQ Item number:  170338-B21.
Compaq iPAQ USB CRADLE.  CPQ Item number:  176481-B21.
Sierra wireless modem:  "Aircard 300".  Item # unknown. Enron IT Purchasing


Hello everyone!
Just wanted to send a quick note to let those of you who don't know already
that I will be moving into a new position within the next week or so and will
no longer be the Reporting Contact for the Natural Gas Teams.  I am moving
over to manage the Reporting Groups for the Back Office and Group Teams.
Please welcome Laynie East as my replacement.  She can be reached at X3-3131
and you may begin calling her with any Natural Gas Team related needs
immediately.
I will certainly be assisting in the transition process and will assist her
with any of your requests on an as needed basis for a while.  Please forward
this note to anyone in your groups who may need this information.

It has been a pleasure working with each of you over the last several months.

Thanks,
Edie


Tana, Peter just asked me to follow up with you as to whether you have had a
chance to prepare a draft agenda for when you are in Calgary.  Peter and I
would like to review it before it gets distributed to everyone.

Thanks
Greg


Sally,

Congratulations on your promotion to MD.

Shanna


Larry,
I want to visit with you on ways to improve the online trades for the Gas
Daily Options you have been posting.  Let me know when you have some time.


----- Forwarded by Steven J Kean/NA/Enron on 02/15/2001 09:38 AM -----

	Phillip K Allen@ECT
	12/22/2000 03:06 PM

		 To: Steven J Kean/NA/Enron@Enron
		 cc:
		 Subject:

Steve,

I am sending you a variety of charts with prices and operational detail.  If
you need to call with questions my home number is 713-463-8626.

As far as recommendations, here is a short list:

 1.  Examine LDC's incentive rate program.  Current methodology rewards sales
above monthly index without enough consideration of future
      replacement cost.  The result is that the LDC's sell gas that should be
injected into storage when daily prices run above the monthly index.
                    This creates a shortage in later months.

 2.  California has the storage capacity and pipeline capacity to meet
demand.  Investigate why it wasn't maximized operationally.
                      Specific questions should include:

  1.  Why in March '00-May '00  weren't total system receipts higher in order
to fill storage?

  2.  Why are there so many examples of OFO's on weekends that push away too
much gas from Socal's system.
       I believe Socal gas does an extremely poor job of forecasting their
own demand.  They repeatedly estimated they would receive       more gas than
their injection capablity, but injected far less.

 3.  Similar to the power market,  there is too much benchmarking to short
term prices.  Not enough forward hedging is done by the major
                    LDCs.  By design the customers are short at a floating
rate.  This market has been long historically.  It has been a buyers market
and the
     consumer has benefitted.

Call me if you need any more input.

Phillip


Deal		Counter party					Sitara Contract
Comment
942720		California Energy Hub, SOCAL			96063621
this is an exchange deal.  California Energy Hub is not listed on the Master Letter Log.  Socal is but there  are no contract numbers listed.  The hedge on this deal was killed in Sitara on 1/8/02.  The March invoice is for demand charges of $.10 x 310,000 dth per day, which may be incorrect.  Its possible that the volume should be 310,000 dth per MONTH.

773141		Central Illinois Light Company			96000389
No changes made to Sitara ticket since 5/4/01.  Per Master Letter Log - ENA cancelled the financial agreement due to Central's failure to pay.  No reference is made to the physical deal.  Per Sitara - this deal has a min and max volume.  The March invoice is for demand charges of $.425 x 10,000 dth per day.

889014		Colorado Spring Utilities				96062701
No changes made to Sitara ticket since 6/29/01.  Per Master Letter Log - only activity with EPMI is listed, no mention of any contracts with ENA.  The March invoice is for demand charges of $7,200.00 per month.

22109		Consolidated Edison Company of New York	96000908
Long term sale to ConEd on Tennessee pipeline.  Not listed on the Master Letter Log.  Per Sitara - the hedge in Sitara was killed on 11/26/01.  The March invoice is for demand charges of $101,339.35 which is a percentage of the Tenn Z1 and Z0 indexes.

1161432	Superior Natural Gas Company			96052897
Not listed on the Master Letter Log.  Per Sitara - hedge in Sitara was killed on 12/12/01.  This is a sale to Superior with a NYMX trigger, the trigger was entered in Sitara on 11/6/01 at 14:32 and the trigger price was $3.05.  The March invoice is for the difference between the trigger price of $3.05 and Nx1 for March $2.388 = $.662 x 10,000 dth per day x 31 days.

1201382	TXU Fuel Company				96096343
This deal probably should not be in Sitara.  Its related to sales made by the Ponderosa Pine Energy Partners, Ltd. to TXU.  This activity used to handled by the Texas Desk.  If Feb 2002, it was decided that all activity should flow through the partnership instead of ENA.  I took all prices on this deal to 0.


FYI,

---------------------- Forwarded by John M Forney/HOU/ECT on 11/27/2000 07:30
AM ---------------------------
From: Dan Dietrich on 11/27/2000 08:34 AM MST
To: Tim Belden/HOU/ECT@ECT, Murray P O'Neil/HOU/ECT@ECT
cc: Chip Cox/PDX/ECT@ECT, Diana Willigerod/PDX/ECT@ECT, Sammy
Abu-Khalaf/PDX/ECT@ECT, Bruce Smith/HOU/ECT, David Poston/PDX/ECT@ECT, Steve
Nat/Corp/Enron@ENRON, Keith Dziadek/NA/Enron, Jeff Richter/HOU/ECT@ECT, John
M Forney/HOU/ECT@ECT, Mark Guzman/PDX/ECT@ECT, Monika Causholli/PDX/ECT@ECT
Subject: IT problems Sunday

Tim and Murray,

Yesterday the real-time desk experienced dropped Terminal Server (TS)
sessions which impacted their productivity. Diana and Chip contacted the
network team in Houston to assist with troubleshooting the problem. Keith
Dziadek monitored the DS3 VPN connection between Portland and Houston and has
determined that it is the dynamic fail-over within the Enron Intelligent
Network (EIN) which is causing the dropped TS sessions. This dynamic
fail-over is a good thing. Our issue is that the sensitivity of the TS
sessions is so high that the time of the dynamic fail-over on the EIN causes
them to drop while all other applications (i.e. Enpower running locally in
Portland) are not affected.

Keith is meeting with his team in Houston as well as staff from EBS today to
form an action plan. Once the action plan has been established, Keith or I
will communicate what and when it will be done to you via email.

You can reach me on my cel if you have any questions.

Regards,

Dan Dietrich
Cel: 403-818-0815

---------------------- Forwarded by Diana Willigerod/PDX/ECT on 11/26/2000
03:33 PM ---------------------------

	From:  Phillip Platter                           11/26/2000 03:19 PM

To: Jeff Richter/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT, John M
Forney/HOU/ECT@ECT, Murray P O'Neil/HOU/ECT@ECT
cc: Mark Guzman/PDX/ECT@ECT, Monika Causholli/PDX/ECT@ECT, Diana
Willigerod/PDX/ECT@ECT, Chip Cox/PDX/ECT@ECT, Paul Kane/PDX/ECT@ECT

Subject: IT problems Sunday

Please be advised of a serious problem with Terminal Server!

We were all kicked out of Terminal Server consistently on Sunday.  At first
it happened about every half hour (9am to 10:30a.m).  Then it happened every
5 minutes.
Communication seemed slow.  We paged and called the Portland IT Team at
11:30  (Diana & Chip).  At 12noon Diana said Chip and Paul Kane were working
on it.   At around  12:30 Paul Kane called back and said "Vince" in Houston
was working on it.  We asked for Vince's Phone number and Paul stated that
Vince would call us instead. Vince called at about 1:00 and said everything
was now working.  Five minutes later we were still getting kicked out.   We
then paged and called Chip and he said he was trying to get ahold of
Houston.  At 1:30 we called the Resolution Center. They indicated they had no
clue we were having problems. At 1: 45 we called Greg Marsalis in Houston and
he said he was unaware of who was working on it, but was going to look into
it.

Greg did look into it and said they were still not able to pinpoint the
problem.  At this writing,(3:10p.m.) we are still not able to use Terminal
Server  and consequently are unable to transact with the ISO or to enter
deals in enpower.  This has also affected our connection to PX Trade App.  We
are effectively prevented from taking advantage of market conditions in
California.  Earlier I had started to initiate some congestion relief  on the
Palo Verde tie .  Cong was $225 to $250 at Palo and I was confident I could
take advantage by moving power out of SP.  I was unable to do anything in
Caps as I was kicked out every few minutes.

I feel the communication process regarding this problem has been flawed.  I'm
sure there is plenty of blame to go around .  I suggest we meet with IT  to
define a process where we will get immediate attention and results.

As of 3:20 we still have the same problems.

I am hoping this problem is isolated to Sunday.


Jim, I think it does.  I am usually unable to attend so I would really like
you to stick with this as our rep.  Also we will talk about the best uses of
your time after this weeks budget meetings.  I'll give you a call.
Thanks,
Mike

James C Lewis@ENRON_DEVELOPMENT
10/12/2000 04:22 PM
To: Mike McConnell/HOU/ECT@ECT
cc:
Subject: Vision & Values Task Force

Mike, I have been the CALME rep on this task force. Given that CALME no
longer exists and that you are already there to represent EGM, do you think
that it makes sense for me to continue to attend these monthly meetings?

Jim


Attached is another redlined draft of the Pastoria IM.  It is much more close
to completion because it now includes comments from all necessary parties.

Please carefully review and send me any changes no later than Monday.  If you
send them today (Sunday) send them via e-mail.  Beginning Monday (12 PM CDT)
I'll be in SF, so if you fax them send them to 415.782.7827.

Please call me at 713.629.0929 or 713.398.6412 should you have any
questions.  Thanks.

PS  for Dave Parquet:  Not all of your proposed changes were made simply
because I could not ready many of them and the changes were too late at night
to call you.  I was asked to get a draft out ASAP so I will call you today
(Sunday) to discuss them.


KM Project Sponsors and Task Force Members,

Attached below is the Knowledge Management Pilot Project Charter and
Executive Summary.  Please review and sign the charter by close of business
Friday, December 1.  Send signed charters to my attention at EB4734a.  If you
have any questions, feel free to contact me at 3 9698.

Thank you,

Marie Hejka


With the first round of RTO filings and responses complete, it is a good time
to step back and review the highs and lows that occurred in 2000 and lay out
our plan going into 2001.

A. 2000 Key Facts --

1. FERC CONTINUES TO RELY UPON MONOPOLIES TAKING VOLUNTARY ACTIONS.

It does not appear that FERC (in its current form) will modify its standing
policy that RTO formation is a voluntary process designed to let 1,000
flowers bloom.  While Enron continues to ask FERC and FERC staff to take a
different position, we have seen no signals that anything will change.  Faced
with this policy, as the initial RTO filings made clear, almost all utilities
are going to fight pretty hard not to have to give up their strategic
transmission assets.  Accordingly, most of the proposed RTOs do not remove
the fundamental problem - the Native Load exception.

2. THE MIDWEST CAN'T MAKE UP ITS MIND ABOUT WHICH RTO IS BEST.

The MISO continues to lose its members to the Alliance RTO.  The three big
utilities that have declared their intention to switch sides include ComEd,
IP, and Ameren (probably 40% of total load in initial MISO).   Key problems
for the MISO include (a) MISO's not-for-profit status (key IP claim), (b)
parties interest in taking energy east (key ComEd need), and (c) fair
retention of 3rd party wheeling revenues (Ameren want).    Meetings with
regional stakeholders (public power, industrials, State PUCs) have been
productive in terms of getting agreement that one single RTO is the preferred
option, however we await action from the FERC.  MISO is also telling everyone
that can listen that if the big three pull out, it probably won't continue.
While the MISO process is very open to the public (not so with the Alliance
RTO), neither MISO nor the Alliance RTO have progressed far enough into the
details to fully determine if our policy objectives will be met.

3. SOUTHERN AND GRID SOUTH DID PRETTY MUCH AS EXPECTED - NOTHING.

Rather than take a major step forward, Southern and Grid South (SCANA, CP&L,
Duke) have initially filed non-compliant RTOs.  Grid South does nothing to
advance a market, much less provide transmission service in a
non-discriminatory fashion.  In fact, Grid South simply takes the current 888
OATT and "combines" the three utilities for wheeling through purposes.

4. PJM CONTINUES TO BE FERC'S SHINING LIGHT.

PJM was the only functioning ISO that filed with FERC earlier than was
necessary (rumor has it that FERC invited PJM to file early to set the "right
example").  PJM declares itself to be fully in compliance with Order 2000 in
that filing.  PJM is also expanding.  So far, Allegheny Power and DQE have
agreed in principle to allow PJM to operate a parallel control area called
PJM West.  In terms of market coordination, PJM has been publicly reluctant
to get involved in working to try to integrate the tight Eastern pools (PJM,
NYISO,  NE-ISO, and Ontario IMO).   The other pools are not getting very much
accomplished in their efforts.  For example, NE-ISO has indicated that it
won't have the Day-Ahead market ready until 2003 at the earliest.

5. ERCOT LOOKS LIKE IT WILL START ITS WHOLESALE MARKET ON TIME.

ERCOT is pressured to initiate its wholesale market by the needs of retail
access (pilot program beginning next summer).  The rules are still being
structured.  We are working to ensure that the tight deadlines don't
overwhelm good market structure.   Robin Kittel and Ron McNamara are leading
our efforts and are very active.

6. SURPRISINGLY FLORIDA IS MOVING ALONG

In a surprise move, the actions so far in Grid Florida, while certainly not
perfect, appear to be moving in the right direction.  The FL PSC has gone
from saying never to asking FERC for assistance in getting the rules right.
Governor Bush has set up a task force to study wholesale competition during
this Legislative session; Enron will be involved.

B. 2001 Steps -

1. FOCUS THE POLITICOS ON RTOs AND ENDING THE NATIVE LOAD EXCEPTION.

FERC will have new leadership some time in early 2000 (if we can get a
President).  Enron is developing a coordinated political plan (Capitol Hill,
media, Administration, industry allies) to impress upon the next
Administration and FERC Chairperson that mandates are necessary to continue
to drive wholesale market reforms.  Without a stronger mandate, it may prove
difficult to have functioning RTOs by the end of 2001.  More importantly, it
will take specific policy changes at FERC or within the state during retail
wheeling proceedings to win the Native Load exception fight.  In those RTOs
that have determined not to agree to ending the Native Load exception, no
amount of meetings or filings will change the parties.

2. COORDINATE GOVERNMENT AFFAIRS SUPPORT MORE CLOSELY WITH THE DESK.

It is our intention to have a full time person working from the Desk to
ensure that Enron's objectives are clearly presented to the developing RTOs.
The goal is to work alongside Christi Nicolay and the commercial teams to
coordinate day-to-day activities of our RTO staff and make sure that no
opportunity is missed.  This should ensure that Enron is advocating the needs
of the commercial teams.   We continue to have at least one person dedicated
to each RTO market.

NYISO   -  Howard Fromer
NE-ISO  -  Dan Allegretti
IMO   - Aleck Dadson
PJM  - Tom Hoatson
MISO/Alliance - Jeff Brown / Dave Mangskau
Grid South - Tom Chapman / Joe Connor
Southern  - Joe Connor
Florida  - Dan Staines
SPP  - Ron McNamara
ERCOT  - Robin Kittel

Mike Roan from New Zealand will be arriving in early January to help out.
Luiz Maurer is coming from Brazil in June / July to also work on wholesale
market issues.

3. PUSH INTEGRATION OF THE TIGHT NORTHEAST POOLS.

NE-ISO and NYISO are required to file their plans for RTO status on January
15, 2001.  While these pools have signed an MOU to discuss integration
matters, not much progress has been made to date.  Moving power between the
pools continues to be difficult given the different protocols and scheduling
rules.  FERC is aware of these problems.  Again, FERC has not done anything
to mandate compliance with Order 2000.  We have deployed an additional
resource in Houston recently to help support Enron's involvement in the tight
pool seams issues and make sure that the Desk is being made aware of all
developments as close to real-time as possible.

4. CONTINUE TO FIGHT IN THE TRENCHES.

The list of people above continue to have day to day responsibility for
ensuring full coverage of all relevant meetings of each RTO.  We continue to
advocate our agenda (to anyone that will listen).   This work is time
consuming (much spent listening to "junk" from monopolist Transmission
Owners) and detailed.  Enron made solid filings in response to the RTOs
initial work and will continue to respond in a manner that best leverages our
resources.

5. FIND THE GRID OPERATOR FOR PROJECT e-trans.

Project e-trans has resulted in a new business consortium -
etransconsortium.com.  This combination of APX, Cal PX, and Alstom ESCA has
developed the necessary pieces of software and systems to provide the "market
front-end" for any RTO (e.g., day-ahead market, transmission exchange,
etc.).  Enron has also finished drafting a detailed tariff that incorporates
our policy objectives.  We are now turning our attention to finding the right
Grid Operator.  We are in discussions with National Grid, American
Transmission Company, MISO, and PJM (although they may want to do something
very similar).  The goal remains the same -- to have a fully functioning
entity that can provide turnkey solutions to any Transmission Owner and use
this entity to leverage FERC to take more dramatic action.  I will be taking
a larger role in this activity as it moves forward in 2001.

6. DON'T FORGET ABOUT THE NEED FOR MORE RETAIL ACCESS AND GENERATION
DIVESTITURE

Government Affairs also will continue to attempt to drive additional markets
through direct access and divestiture.  It will take (1) non-discriminatory
transmission access, (2) retail choice, and (3) generation divestiture to
enable a fully thriving wholesale market.  Of course, additional market
openings face the political questions raised due to the crisis in California.

I hope this helps put some framework around our activities.  If anyone wants
to discuss this in more detail, I'd be happy to meet individually or as a
group.

Jim


The following file contains a graphical view of the North American Gas average deal count by Trader and Product for EOL. This information is for comparative analysis only.  Do not update links when opening this file.

If you have any questions regarding this breakout, please let me know .

Adam Johnson
EnronOnline
x54877


Sara and Susan,

Could you please add the following additional events of default to the Empire
ISDA:

EBITDA/Interest >5x
No additional debt greater than $5MM

If you have any questions or would like to discuss please feel free to call.

Thank you,

Jane Wilhite
ext. 35063


Mitch,

Has the letter gone out?

Kay

From: Richard B Sanders@ECT on 07/23/2000 09:24 AM
To: Kay Mann/Corp/Enron@ENRON
cc: Mitch Robinson/Corp/Enron@Enron

Subject: Re: PRIVILEGED and CONFIDENTIAL

If this letter has not yet gone out, we should include the kitchen sink of
perceived problems. I agree that the letter should be short, but lets
eliminate their argument that we did not give complete notice.

	Kay Mann@ENRON
	07/13/2000 12:13 PM

		 To: Mitch Robinson/Corp/Enron@Enron
		 cc: Richard B Sanders/HOU/ECT@ECT
		 Subject: PRIVILEGED and CONFIDENTIAL

Mitch,

Here's a first draft.  Please suggest any additional complaints/shortfalls
which we need to raise.  It is better to be all inclusive than leave
something out.

Richard, any ideas or comments?

Kay


Good job, Don!    We always appreciate you and all that you do!

Cindy

DON
POWELL
11/01/2000 09:26 AM

To: Ava Garcia/ET&S/Enron@Enron, Bob Martinez/ET&S/Enron@ENRON, Sally
Shuler/GPGFIN/Enron@ENRON, Kim Perez/ET&S/Enron@ENRON, Lisa
Gilchrist/ET&S/Enron@ENRON, Lillian Villarreal/Corp/Enron@ENRON, Karon
O'Gorman/OTS/Enron@ENRON, Patti Dennis/ET&S/Enron@ENRON, Mark
Ferguson/ET&S/Enron@ENRON, Carol Sommer/GPGFIN/Enron@ENRON, Julia
White/ET&S/Enron@ENRON, Mike Sullivan/ENRON@enronxgate, Fran
Fagan/OTS/Enron@ENRON, Morgan Gottsponer/ET&S/Enron@ENRON, Lynda
Laferla/FGT/Enron@ENRON, Tammy Kovalcik/FGT/Enron@ENRON, Darrell
Schoolcraft/ET&S/Enron@ENRON, Kimberly Watson/ET&S/Enron@ENRON, Ben
Asante/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Velvet
Sugarek/GPGFIN/Enron@ENRON, Stanley Horton/Corp/Enron@Enron, Cindy
Stark/Corp/Enron@ENRON, Gina Taylor/OTS/Enron@Enron, annhoang@themail.com,
Nanci Allen <nallen@ronaldmcdonald-houston.org>
cc:

Subject: Rhonald McDonald House Photo Album

Here's the photo album from our trip to Rhonald McDonald House.  Thanks to
everyone for Enjoy!
http://www.imagestation.com/album/?id=4293423845&code=702824&mode=invite


---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/10/2001
04:48 PM ---------------------------

Sergio Assad
06/21/2001 11:23 AM
To: Richard Shapiro/NA/Enron@Enron
cc:

Subject: Regulatory Affairs events

Rick

As per your request, see attached summary regarding our activities in Brasil
from Jan to April.
Unfortunately we couldn't sent to you before due to a lot problems we are
facing here.
Thanks
Sergio Assad

---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/10/2001
04:48 PM ---------------------------

Guillermo Canovas
07/03/2001 09:02 PM
To: Richard Shapiro/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
cc: Andrea Calo/SA/Enron@Enron, Michael Guerriero/SA/Enron@Enron, Amr
Ibrahim/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Power Decree 804 and Resolution 135

This is to inform you the recent approval of the below commented rules in
Argentina. If the economic and political environment gets calmer, these rules
will be an important step in the power deregulation process an will allow us
to reach some of the goals set for the regulatory group for this year.

Goal 1- Eliminate or Increase fuel declaration caps: there will not be more
fuel declarations but price declarations (Section 1, Resolution 135). The
rules do not mention any cap for price declarations.

Goal 2 - Daily fuel declaration: The 6 month fuel declaration was replaced by
a daily price declaration (Section 1, Resolution 135).

Goal 3 - Reduce or eliminate the obligation to physically back up agreements
with end users or LDCs: According to the interpretation of AGEERA (Gencos
Association) we would have been gotten also this objective and marketers may
already buy or sell spot as long as the contract with the customer does not
have supply guarantee (Section 5, Resolution 135). It is not clear in the
rule wich is the condition for marketers to buy or sell spot.

Now the Secretariat of Energy must issue its own Resolution to amend the
technical Procedures in line with these rules. From the text of Resolution
135 (sections 3 c, 5 and considerations) there would be a good probability to
reach other two goals through the Secretariat of Energy rule:
Reduce minimum term for Output & Demand Marketing Agreements to one month
Eliminate or reduce to 1 MW the threshold for Output Marketing Agreements

Amr and I are asisting Buenos Aires Ofice to analize the new rules to
eventually submit comments to the Secretariat of Energy.
Attached is the document with the regulatory goals.
Regards
Guillermo

---------------------- Forwarded by Guillermo Canovas/SA/Enron on 07/03/2001
08:40 PM ---------------------------

Andrea Calo
06/29/2001 06:49 PM
To: Jose Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sergio
Assad/SA/Enron@Enron, Michael Guerriero/SA/Enron@Enron, Remi
Collonges/SA/Enron@Enron, Julian Poole/SA/Enron@Enron, Roberto
Volonte/ENRON@enronXgate, Laura Feldman/SA/Enron@Enron, Guillermo
Canovas/SA/Enron@Enron, Maria Pia Beccaccini/SA/Enron@Enron, Rodolfo
Freyre/SA/Enron@Enron, John J Shoobridge/SA/Enron@Enron
cc:
Subject: Power Decree 804 and Resolution 135

In an attempt to further reduce State intervention in the power market, on
June 19, the Executive Branch issued Decree 804/01 which completes the
deregulation process of the power industry initiated in 1992, and amends
Electricity Law 24.065.  On June 26 the Minister of Infrastructure issued
Resolution 135/01 setting forth  the guidelines for the future regulation of
the Decree.

The Secretariat of Energy's resolution that will regulate the Decree will be
effective as from September 1, 2001. All agents of the electric sector will
be invited to comment the terms of regulatory decree, although such comments
will be used for informational purposes and will not bind the Secretariat of
Energy to make any changes whatsoever to its original document.

Although Decree No 804/01 is effective as from today, there are doubts in the
industry as to whether it will be abolished in the future by Congress.  The
reason for this uncertainty is that such Decree was issued within the
framework of the Competitivity Law, by which Congress delegated to the
Executive Branch its  powers to legislate  specifically on changes required
to transform the economy.  Although this Decree and the changes it fosters
indirectly affect the economy, since the law it amends is not purely
"economical", it may be questioned.  There is no term within which Congress
may exercise this right.

Please find a summary of the relevant changes below.

Generators Remuneration:
Forward Market: freely negotiated
Spot Market:  only payment of "hourly spot price" at each node.
Hourly Spot Price: determined by price offers based on demand and
transportation constraints

Daily Declarations
The day before the daily dispatch, each Generator shall:
declare its price offers for each  peak, shoulder and valley hour at its
node;
declare its maximum operating limits and minimum available capacity;
offer all of its available capacity.

Calculation of Hourly Spot Price "HSP"
HSP shall be calculated by the OED according to procedure to be determined by
the Secretariat of Energy, not based on marginal costs as it is today.
Prices shall be calculated at each node before the initiation of each day.
At the end of each day prices shall be recalculated based off real operations
on the system.

Spot Market
Generators and Marketers shall be paid on an hourly basis according to the
volume of energy delivered at the node, which shall be valued at the HSP.
If distributors, large users and/or marketers enter into supply contracts
then to clear transactions on the spot market , the OED shall consider that
the sellers (Marketers/Generators) assume their clients payment obligations
before the market.
On spot market transactions, Generators shall not receive payments for any
other concept.

Forward Market
Generators and Marketers may enter into contracts with distributors,
marketers and large users at freely negotiated prices and terms.

Marketers
Are now considered agents of the electric sector.
May enter into forward contracts and/or carry our purchase and sale
transactions on the spot market at the node HSP.
Must declare their offer and demand at each node of the system.
Their obligations shall be similar to those of Generators and Distributors
when they transact at the MEM.

Congestion Rights
Right to receive profits resulting from the difference in energy prices
between two nodes related to the link and the capacity charge of the relevant
transmission system.
In the case of:
Existing transportation lines under concession, these rights belong to the
State, which will sell them under a public offering called by the
Secretariat of Energy.
Existing transportation lines carried out by an independent transporter shall
belong to such transporter.
New transportation lines, shall belong to the owner of the same.

Expansions
Sole Risk Investment Expansions: Open to anyone who is interested; will
require technical and environmental certification of the ENRE and license
from the                 Secretariat of  Energy.

System Reliability Expansions:  Shall be built by awardee of public tender.

Distributors
Have to satisfy all demand of users within their area that have the choice of
independently contracting their supply in the  MEM; Distributors may offer
contracting options with or without supply guaranty; these contracts shall be
considered special contracts
When they contract their demand with Generators and/or Marketers, the general
terms of the contracts as well as the procedure for selecting suppliers will
be subject to guidelines established by the Secretariat of Energy;
In order for the price under these contracts to be passed through to their
end users tariffs, the relation between the term of the contracts and the
volume purchased must comply with a chart that basically states that the
greater the term of the contract, the lesser the percentage of contracted
energy.
In any case, the total amount of energy contracted can not be in excess of
the total demand of users that can't transact on the MEM.

Forced Dispatch
Distributors may request forced dispatch of certain units;
The Distributor that requests forced dispatch is responsible for payment of
the same, Secretariat of Energy to control if forced dispatch costs are
reasonable.
Such price shall not be transferred to end users and shall not be taken into
account to calculate the HSP.

---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/10/2001
04:48 PM ---------------------------

Jose Bestard@ENRON_DEVELOPMENT
07/07/2001 06:57 PM
To: Luiz Maurer/SA/Enron@Enron
cc: Richard Shapiro@Enron

Subject: Cuiaba Issues - July 6 situation-

Luiz. Thank you for your note.  We are still in the boxing ring!. The first
round was won but we still have some more rounds to go. Next week is the
consent, provably in two weeks we will discuss the regulatory obstacles..

Jose
---------------------- Forwarded by Jose Bestard/ENRON_DEVELOPMENT on
07/07/2001 05:54 PM ---------------------------

Jose Bestard
07/07/2001 03:41 PM
To: Cuiaba LT
cc: Sergio Assad/SA/Enron@Enron, Orlando Gonzalez/SA/Enron@Enron, Joe
Kishkill/SA/Enron@Enron

Subject: Cuiaba Issues - July 6 situation-

Topic I -- Amendment 4

We spent the morning perfecting Aditivo 4 with Furnas, to cover the situation
where the commissioning plan did not go as scheduled. It was signed early
afternoon and sent to Eletrobras.

The Eletrobras Diretoria had not followed this issue closely and need legal
clearance. Furnas and the Ministry (Perazzo) called to give it priority. Late
at night we received word that the "parecer" (opinion) was ready and that it
the Anex would  signed by Eletrobras next Monday and entered into their Board
meeting next Tuesday.

Petrobras sent us the letter we asked but took out of their version a key
word "only". "Only" refers that they will not go after us for non-payment if
Furnas does not pay. In the letter they also stated that they will commence
the loading operation -- at their own risk - Saturday. This was requested by
Perazzo to save logistical time because it takes three days to get to Cuiaba
from the refinery.

[Advised Laine of the situation to check Monday how many trucks were loaded
and  in transit]

We contacted Perazzo through Sergio Assad to get his word that there would
not be a last minute hitch; otherwise, we may have to refuse to take the
diesel and would create a BIG PR problem for all.

Topic III - Consent Package (Opinions, Aditivo, Consent)
Furnas came in with the list of issues they wanted to discuss. I instead
insisted that we treat this meeting as a continuation of the MME meeting and
follow the Agenda  by looking at the Consent document package -- actually go
over the text -  that they find objectionable, and,  if it the text had a
direct link with any of their issues, we would discuss and examine the
relative positions.

What they told me is what they have told me before, that some of the issues
have nothing to do with the Consent but they want it as a condition to agree
to the package. Which is fine to me, because it will make it clear to the
government what we have been saying --- they want to change the deal. In
Furnas' defense, I need to add that they feel they have been handed a bad
contract  and they want regulatory relief, which it has been granted, on a
case-by-case basis, in other deals. So part of their strategy is to force
MME, or Aneel to provide some tariff relief.

I asked them to list out  the key issues with the Consent-  Old-- a) the 90
days additional time (Furnas), b) The guarantee substitution at the time of
privatization, c) the lenders involvement on contract changes "we do not want
to go to Washington to negotiate" - Newer - d) giving up their right to ask
Aneel to "homologar", ratify; rather than "registrar" contract changes [big
risk for us] . I believe the have more direct issues.

We go back to Rio Monday (another holiday down the drain) ..and Tuesday to
complete the list -- Topic II -- Regulatory conflicts

Jose


Mary,  Please prepare a draft bi-latieral CA with the following entity:

RealEnergy, Inc.
1900 Avenue of the Stars, Suite 755
Los Angeles, California 90067

The topic of the CA should be information concerning a potential sale of natural gas and/or provision of transportation capacity for RealEnergy's distributive generation requirements in southern California.

You can use the Huber CA we just did for the form.  Please check conflicts with Kay Young as well.  Thanks.


interested in a night of pizza, wine, US soccer, and belize planning tonight?

 -----Original Message-----
From: 	"Jennifer White" <jenwhite7@zdnetonebox.com>@ENRON [mailto:IMCEANOTES-+22Jennifer+20White+22+20+3Cjenwhite7+40zdnetonebox+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Tuesday, June 19, 2001 10:38 AM
To:	Arnold, John
Subject:	belize info

Here is your two week notice for Belize...

I'm on Continental flight 1231, departing July 4 at 1:25 PM, seat 15D,
returning Sunday, July 8.  I hope you decide to take the later flight
out Saturday.

I talked to the hotel and they have rooms and a scuba instructor available
to dive with us.  Let me know your flights so that I can arrange the
air transfers between Belize City and Placencia and dive lessons through
the hotel.  I haven't booked it yet since they require a non-refundable
deposit.

Call me with any questions - or if you change your mind so that I can
make alternate plans.

Jen

___________________________________________________________________
To get your own FREE ZDNet Onebox - FREE voicemail, email, and fax,
all in one place - sign up today at http://www.zdnetonebox.com


---------------------- Forwarded by Don Miller/HOU/ECT on 09/21/2000 08:44 AM
---------------------------

"Modi, Rishi" <rishi.modi@csfb.com> on 09/14/2000 01:14:18 PM
To: "'don.miller@enron.com'" <don.miller@enron.com>
cc:
Subject: Mgm't Presentation

Don-

Jim asked me to send this to you.  Thanks, Rishi

 <<003730901.doc>>

This message is for the named person's use only.  It may contain
confidential, proprietary or legally privileged information.  No
confidentiality or privilege is waived or lost by any mistransmission.
If you receive this message in error, please immediately delete it and all
copies of it from your system, destroy any hard copies of it and notify the
sender.  You must not, directly or indirectly, use, disclose, distribute,
print, or copy any part of this message if you are not the intended
recipient. CREDIT SUISSE GROUP and each of its subsidiaries each reserve
the right to monitor all e-mail communications through its networks.  Any
views expressed in this message are those of the individual sender, except
where the message states otherwise and the sender is authorised to state
them to be the views of any such entity.
Unless otherwise stated, any pricing information given in this message is
indicative only, is subject to change and does not constitute an offer to
deal at any price quoted.
Any reference to the terms of executed transactions should be treated as
preliminary only and subject to our formal written confirmation.

 - 003730901.doc


We would like to file both the accounting and legal responses by the end of the week.  Can you let me know the latest status of the responses related to EGP Fuels.  Thanks.


The particulars of the transaction:

We are obligated to deliver 25 MW of power to WALC at Pinnacle Peak through 12/31/04.

The company receives $45 for each MW delivered to WALC.

Pinnacle Peak is not a liquid trading hub.  There are only two utilities with facilities at Pinnacle Peak, WALC and APS.

We are currently utilizing APS transmission to deliver energy to WALC during off peak hours.

The cost of the APS transmission is $1.95.

The energy to satisfy this obligation is available at Four Corners under contract from El Paso Electric.  The energy from El Paso is contracted to be purchased through the end of this year under a prepetition agreement at a fixed price of $22.25.

The Transmission Service Agreement will be terminated by APS for nonpayment of  a prepetition obligation of $43,708.60.

APS is the sole party able to provide transmission to Pinnacle Peak at this time.

Absent the ability to purchase transmission from APS, the company will be forced to settle the WALC obligation at above market prices due to the illiquidity at Pinnacle Peak.  These costs could run as high as $5.

The inablity to purchase APS transmission for $1.95 will increase the company's costs by as much as $3 over the term of the WALC obligation.

There are approximately 95,000 MWh remaining to be delivered to WALC for the remainder of 2001 on light load hours.

The increased cost to deliver would result in an additional expense of $285,000 for the remaining deliveries this year.

The increased cost for the entire term of the WALC agreement could exceed $1,000,000.


Is there anything we can do to address circumstances where we are required to
bid into the ISO pursuant to the DOE's Section 202(c) order - especially for
the fixed price customers?

Steve C Hall
12/18/2000 05:46 PM
To: Greg Wolfe/HOU/ECT@ECT, Chris H Foster/HOU/ECT@ECT, mwood@stoel.com,
Lester Rawson/PDX/ECT@ECT, gfergus@brobeck.com, Christian Yoder/HOU/ECT@ECT,
Mary Hain/HOU/ECT@ECT
cc:
Subject: Draft California Rider

For your review:

Under this rider, service customers selling energy to EPMI at an indexed
price would be required to reimburse EPMI for any FERC-ordered refunds or
short payments due to a credit default at the PX/ISO.  Customers selling for
a fixed price would not be subject to these prior adjustments because the
customers have no expectation that EPMI will necessarily sell into
California.


Normal Temp		Actual Temp		Load North
Friday		18			38			2.346 Bcf
Saturday	19			30			2.631
Sunday		19			22			2.820
Monday		19	Forecast	21			3.124


i think i can scrounge one up

	Enron North America Corp.

	From:  Jeffrey C Gossett                           09/20/2000 09:40 AM

To: Eric Bass/HOU/ECT@ECT
cc:
Subject: Re:

I brought none of the below with me today.  have any extras?

	Enron North America Corp.

	From:  Eric Bass                           09/20/2000 09:29 AM

To: Matthew Lenhart/HOU/ECT@ECT, Timothy Blanchard/HOU/EES@EES, Jeffrey C
Gossett/HOU/ECT@ECT, Kenneth Shulklapper/HOU/ECT@ECT, Nick
Hiemstra/HOU/ECT@ECT, Luis Mena/NA/Enron@Enron, Amir Ahanchian/Enron
Communications@Enron Communications
cc: Brian Hoskins/Enron Communications@Enron Communications
Subject:

By the way, wear your grey "HEAT" jerseys to the game and bring a blue
t-shirt as an extra.


Please plan to attend a Blackwater TA finalization meeting Today at 11:30 am
in eb 751.


Christmas is upon us!!  Please see the below invitation and come join us on
Thursday 12/14/00 on the 50th floor of the Enron building at 1400 Smith
Street in the executive dining room.  If you have never seen the 50th floor
decorated for Christmas, it should be a treat.  I hope to see you there.  If
you cannot make it, Happy holidays and goodwill to all.  Please RSVP to
jeffrey.mcclellan@Enron.com.

Jeff McClellan
President - Cougars@Enron
713-853-4779


3:30 works for me.

Corey
---------------------- Forwarded by Corey Hollander/Corp/Enron on 09/19/2000
08:48 AM ---------------------------
From: Tana Jones@ECT on 09/18/2000 05:35 PM
To: Corey Hollander/Corp/Enron@ENRON
cc:

Subject: Re: Global Counterparty Next Generation Requirements

As we spoke I got scheduled for a 2:30 too, so how about 3:30 tomorrow?

	Corey Hollander@ENRON
	09/18/2000 05:04 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: Re: Global Counterparty Next Generation Requirements

I have a Doctor's appt tomorrow at 9:30am, and I'm not sure I'll be back by
11am.  I can do it anytime after 2pm tomorrow or anytime on Wed.

Corey

:


To:
Subject: Exempt Market Declaration - Australia

Today I spoke to the Jillian Segall, National Commissioner of the Australian
Securities and Investments Commission (ASIC).   I have arranged a meeting
with her and staff handling our application next Wednesday afternoon. Paul
and I will go and we will take Mallesons. I have foreshadowed to her that we
would be willing to withdraw and resubmit our application (addressing
credit/prudential issues as ASIC staff had suggested to Mallesons). However
we would like to explain face to face the circumstances. I said that we
didn't want any impression that Enron had either lost interest or were acting
in a fit of pique. Quite the contrary we see the grant of the Exempt Market
Declaration as critical and appreciate their efforts to date. (Considering
Paul Q's well known aversion to blunt talking I thought it wise to foreshadow
what we wanted to cover, as follows.)
We understand that unless we can comply with the exact requirements of Policy
Statement 70 (para 50) then ASIC believes it is required to make new policy
and could not act within the time frame we require. The Minister's office
indicated he could not attend the launch of a product that was the subject of
an EMD application. Withdrawing the application whilst we clarify the credit
issues would remove this timing pressure from ASIC.
We have made the determination that an EMD is not required for us to launch
weather products on EOL. That being  the grant of an EMD (especially with
CLERP 6 coming early next year) is the regulatory certainty that Enron would
require if its plans to develop Sydney as a regional centre were are to
progress.
I indicated we would also be expressing our suggestions on ASIC concerns with
procedures that purport to oversee creditworthiness of market participants.

In essence it was a most positive discussion. Assuming all falls into place
we can maintain our strategy of using the political support to get an EMD
whilst  allowing  the launch to go ahead next month. Enron Australia is also
seen as conciliatory to ASIC's concerns whilst maintaining the pressure.

Paul (Simons) we appreciate your ongoing help. We also understand the
sensitivity at present re an EEFT guarantee.