How Enron Blew It
Less than a year ago, the Houston-based energy behemoth had everything: money, power, glitz, smarts, new ideas, and a CEO who wanted to make it the most important company in the world. Now its stock is down, wall street is bearish, and the CEO is gone. What went wrong?
by Mimi Swartz </mag/issues/authors/mimiswartz.php>
THE ENRON SKYSCRAPER NEAR THE SOUTH END OF HOUSTON'S DOWNTOWN feels like the international headquarters of the best and the brightest. The lobby in no way resembles the hushed, understated entryways of the old-fashioned oil companies, like Shell and Texaco nearby. Enron, in contrast, throbs with modernity. The people hustling in and out of the elevators are black, white, brown; Asian, Middle Eastern, European, African, as well as American-born. They are young, mostly under 35, and dressed in the aggressively casual uniform of the tech industry-the guys wear khakis, polo shirts, and Banana Republic button-downs. Almost preposterously fit, they move through the building intently, like winners. Enron is nothing if not energetic: A Big Brother-size TV screen frantically reports on the stock market near a bank of elevators, while another hefty black television relaying the same news greets people entering from the garage. A sculpture of the corporate symbol, an E tipped at a jaunty angle, radiates colors as it spins frenetically on its axis; a Starbucks concession on the ground floor keeps everyone properly caffeinated. Multicolored, inspirational flags hang from the ceiling, congratulating Enron on its diversity and its values; one more giant banner between elevator banks declares Enron's simple if grandiose goal: "From the World's Leading Energy Company to . . . The World's Leading Company!"
For a while, that future seemed guaranteed, as Enron transformed itself from a stodgy, troubled pipeline company in 1985 to a trading colossus in 2000. It was a Wall Street darling, with a stock price that increased 1,700 percent in that sixteen-year period, with revenues that increased from $40 billion to $100 billion. "The very mention of the company in energy circles throughout the world creates reactions ranging from paralyzing fear to envy," notes a 2001 report from Global Change Associates, a firm that provides market intelligence to the energy business.
This Enron was largely the creation of Jeff Skilling, a visionary determined to transform American business. Hired sixteen years ago as a consultant by then-CEO Ken Lay, Skilling helped build a company that disdained the old formula of finding energy in the ground, hauling it in pipelines, and then selling it to refineries and other customers. Instead, it evolved into a company that could trade and market energy in all its forms, from natural gas to electricity, from wind to water. If you had a risky drilling venture, Enron would fund it for a piece of the action. If you wanted your megacorporation's energy needs analyzed and streamlined, Enron could do the job. If you were a Third World country with a pitiful infrastructure and burgeoning power needs, Enron was there to build and build. Basically, if an idea was new and potentially-and fantastically-lucrative, Enron wanted the first crack. And with each success, Enron became ever more certain of its destiny. The company would be the bridge between the old economy and the high-tech world, and in February of this year, Skilling reaped his reward when he succeeded Lay as chief executive officer. Enron, says Skilling, "was a great marriage of the risk-taking mentality of the oil patch with the risk-taking mentality of the financial markets."
The Enron story reflects the culture that drove American business at the end of the twentieth century. Like the high-tech companies it emulated, Enron was going to reinvent the American business model and, in turn, the American economy. Maybe it was natural that this Brave New World also produced a culture that was based on absolutes: not just the old versus the new, but the best versus the mediocre, the risk takers versus the complacent-those who could see the future versus those who could not. The key was investing in the right kind of intellectual capital. With the best and the brightest, a company couldn't possibly go wrong.
Or could it? Today Enron's stock trades at around $35, down from a high of $80 in January. The press cast Enron as the archvillain of California's energy crisis last spring, and Skilling caught a blueberry pie in the face for his relentless defense of the free market. A long-troubled power plant project in India threatened the company's global ambitions. Telecommunications, in which Enron was heavily invested, imploded. Wall Street analysts who once touted the company questioned its accounting practices. Some of the change in Enron's fortunes can be attributed to the economic downturn in uncertain times that has afflicted all of American business. But the culture that the company created and lived by cannot escape blame.
ENRON, JEFF SKILLING SAYS, HAD "a totally different way of thinking about business-we got it." At Enron, in fact, you either "got it" or you were gone-it was as simple as black and white. It is not coincidental, then, that the color scheme of Skilling's River Oaks mansion mirrors the corporation he once headed. Here, the living room's white walls shimmer against the mahogany floors. Black leather trims the edge of snowy carpets. Billowy sofas set off the jet-black baby grand. In the entry, white orchids cascade from a black vase on a black pedestal table that in turn pools onto cold, white marble. There is only one off-color note: After almost twenty years, Jeff Skilling is no longer associated with Enron, having resigned abruptly after just six months as CEO. Once, Skilling was hailed as the next Jack Welch (General Electric's masterful CEO), as one of Worth magazine's best CEO's in America (anointed in 2001), and even as a daredevil who hosted the kind of unchained adventure junkets in which, a friend told BusinessWeek, "someone could actually get killed." Today, he sounds more like Ebenezer Scrooge on Christmas morning. "I had no idea what I'd let go of," Skilling says of all the personal sacrifices he made while retooling Enron.
From a black chair in the white library, across from a huge black and white photograph of his daughter and two sons, Skilling clarifies. The demands of working 24-7 for Enron caused him to ignore his personal finances. Divorced, he lived in a 2,200-square-foot house without a microwave or a dishwasher. He almost missed his brother's wedding. "Learning a foreign language-I never learned a foreign language!" he exclaims. He never once took his youngest son to school. "I'm interested in the kids. You don't do kids in fifteen-minute scheduling." Travel: "You can't go to Africa for a week and get anything out of it!" Skilling includes the study of architecture and design on his list of missed opportunities, then he stops and sighs. "I'm not sure that fulfillment in life is compatible with a CEO's job," he says, finally. Then his eyes lock on mine, and his voice, which had softened, regains its pragmatic edge. "It would have been easy to stay," he says. "But that would not have been good for me."
He's a smallish, ruddy-faced man who keeps himself at fighting weight, handsome in the way of corporate titans, with piercing cheekbones and that assiduously stolid gaze. But the impatience Skilling once reserved for cautious underlings and dull-witted utility company executives is now targeted at reporters who have labeled his resignation "bizarre" and associates who are bitterly skeptical of his need for family time. His shrug stretches the limits of his shimmering blue button-down, and his matching blue eyes look put upon. "I'm surprised," he says, "that people have so much trouble understanding this."
PEOPLE WHO PASSED THROUGH DOWNTOWN HOUSTON in the late eighties or early nineties couldn't help but notice a funny and, for its time, novel scene unfolding throughout the workday at the base of the Enron Building. From nine to five and before and after, you could see people slipping out of the pristine silver skyscraper to smoke. They perched on the chrome banisters or lurked near the glass doors at the entry, puffing like mad. They always looked hurried and furtive, even ashamed. Whatever people knew about Enron in those days (and most people didn't know much), it was often associated with that scene: Enron boasted one of the first nonsmoking corporate headquarters in Houston, and there couldn't have been clearer evidence of its break with the energy world of the past. What macho engineer would have put up with such humiliation?
But this company was a child of another time, that period in the mid-eighties when chaos enveloped the gas business. Federal deregulation of natural gas turned a steady, secure industry, in which gas pipeline companies frequently enjoyed a monopoly in portions of the areas that they served, into a volatile free-for-all. The situation was compounded five years later by federal deregulation of the pipeline business. So it happened that a gentlemanly gas pipeline company, Houston Natural Gas (HNG) found itself under attack from Coastal Corporation, Oscar Wyatt's less than gentlemanly firm. HNG was then run by Lay, a sturdy, taciturn former economics professor and Transco chief operating officer who had a passion for military strategy. (His doctoral thesis at the University of Houston was on supply and demand in the Vietnam War.) Lay, who was from Missouri and never succumbed-at least outwardly-to Texas brashness, had done well enough: Thanks to canny expansions, HNG's pipelines stretched from Florida to California and throughout the state of Texas.
HNG fended off Coastal, but to protect the company from other takeover attempts, Lay nimbly engineered the sale of HNG in 1985 to a friendly Nebraska pipeline concern called InterNorth, one of the largest pipeline companies in the country at the time. Then, a funny thing happened: HNG started acting in a way that would characterize the company for years to come-a lot like Coastal. What the Nebraskans blithely labeled "the purchase" was being called "the merger" back in Houston, and before long, following some particularly brutal politicking between Omaha and Houston, the company's center of gravity started shifting toward Texas, and shortly after that, Ken Lay was running a new company called Enron. "Over time it became clear that Lay had a better vision of the future," says one person associated with Enron at that time. "He never fought change. He embraced change."
Lay had won, but what exactly did that mean? Enron was saddled with massive debt from the takeover attempt, and thanks to deregulation, no longer had exclusive use of its pipelines. Without new ideas-for that matter, a whole new business plan-the company could be finished before it really even got started.
LIKE MANY PEOPLE WHO TEAMED UP WITH ENRON IN THE EIGHTIES, Jeff Skilling had spent a lot of time in the Midwest, and he was self-made-at fourteen he had been the chief production director at a start-up TV station in Aurora, Illinois. (His mother would drop him off there every day after school.) "I liked being successful when I was working, and I was smart," he told BusinessWeek earlier this year. But unlike many of his Enron colleagues, Skilling wasn't deliberate and soft-spoken and happy to go home at five o'clock; he was anxious and excitable, and nothing, but nothing excited him more than what he would come to call "intellectual capital." He loved being smart, and he loved being surrounded by smart people. He graduated from Southern Methodist University, went into banking-assets and liability management-and took on Harvard Business School, where he graduated in the top 5 percent of his class. Then Skilling took the next step on what was then the new, souped-up path to American success: He joined Manhattan's McKinsey and Company as a business consultant, and that is where Ken Lay found him in 1985.
It is often said of Lay that his instincts for hiring the best are flawless, and his choice of Skilling probably saved the company. Skilling was above all an expert at markets and how they worked. While everyone else was worrying about the gluts and the shortages that defined the gas industry, he alone saw the parallels between gas and other businesses. And so in a world where credit was nearly impossible to come by, Skilling came up with what he called the Gas Bank, which contractually guaranteed both the supply and the price of gas to a network of suppliers and consumers. Enron would not be a broker but a banker. It would buy and sell the gas itself and assume the risk involved. And Enron would make money on transactions, much like an investment bank would.
Skilling worked up some numbers and found them "absolutely compelling." Then the McKinsey consultant took the idea to a meeting of about 25 Enron executives. He had a one-page presentation. "Almost to a person," Skilling says, "they thought it was stupid." Almost. After Skilling left the meeting dejected, he walked Ken Lay to an elevator and apologized. Lay listened and then said, "Let's go."
The Gas Bank was not an overnight success. For months Skilling woke up in a cold sweat, sure he had ruined not only his career but the careers of dozens of colleagues who had assisted him. In fact, he had come upon one of those divides that seem to define his life: "I believed this whole world would be different, a huge breakthrough" is the way Skilling puts it today, and even if he is typically immodest, he was right. Fairly soon after launching, the company sold $800 million worth of gas in a week. True to Skilling's character, success turned out to be a matter of old versus new: He says the joke around Enron was that if a company's CEO was under fifty, "We were in." And he was in too: In 1990 Skilling finally left McKinsey and joined Enron as the head of Enron Finance Corporation, a new division created just for him. In 1991 that company closed a deal that earned $11 million in profit. After that, says Skilling, "we never looked back."
Skilling and Lay also realized that the Gas Bank couldn't work unless it had a trading component. Myriad trades were needed to build the market that would make the project go. But by buying and selling enormous quantities of gas, Enron not only constructed a market but almost instantly came to dominate it. The company had the best contacts, the best intelligence, and the best access to supplies. That, in turn, attracted more customers who wanted to be part of the play. With so many customers in its pocket, Enron could better predict the direction of the market and could use that knowledge to make trades for its own benefit-Enron could in effect bet on which way the price of gas would go, as one might do with pork bellies or soybeans, but with startling accuracy, thereby generating profits higher than anyone could have ever imagined.
THIS CHANGE COULD NEVER HAVE OCCURRED without another change Skilling had made: He created, within Enron, a new culture to match its new trading business. The idea was to build a "knowledge-based business," which demanded a skill set not exactly prized by Enron's employees from the old HNG days. Most were deliberate, cautious, responsible, somewhat defensive people, most of them men, of course-the kind of people you'd expect to find working in an industry regulated by the federal government. But now the company needed bolder people for its bold new era: that included anyone who wanted to make money-lots of money-for themselves and for the company. "Enron was going to create a niche for itself or die," one former executive explains. "The people who had narrow views eventually were forced out, because if they had narrow views about other things, they had narrow views about the market."
Skilling wanted smart people but not just any smart people. He wanted the smartest people from schools like Harvard, Stanford, and maybe, Rice. And because his firm was now acting more like a bank than a pipeline company, he wanted to draw from the pool of recruits that would be attracted to the biggest and best investment banks, like Merrill Lynch or Credit Suisse First Boston. In addition to being smart, Enron people were also supposed to be "aggressive." You were right for Enron if you didn't want to wait until you were thirty to close your own deals or move up in an organization.
You could see what he was looking for on "Super Saturdays" at the Houston headquarters: eight fifty-minute interviews with ten minute breaks in between-the company might herd as many as four hundred people through in just one day. They were scored from 1 to 5 on their smarts, their problem-solving ability, their passion for hard work, and what at Enron was called "a sense of urgency." People who scored less than 2.5 were scratched. The shrewdest candidates knew how to work Enron before they were even hired: These were the types that automatically turned down the company's first offer, knowing Enron would come back with more. The starting salary was around $80,000. Maybe it wasn't a fortune-yet-but the signing bonus, about $20,000, was more than enough for a lease on the obligatory Porsche Boxster or one of the lofts being renovated close to downtown. (Enron people didn't live in far-flung suburbs. Suburbs were uncool and too far from the office.)
For the lucky winners, Enron offered the corporate equivalent of a gifted-and-talented program. New associates learned the latest techniques for structuring energy deals, and there were rotations at Enron offices around the globe. The hours were long, but every possible need was taken care of. A company concierge handled all the things important people couldn't be bothered with: picking up dry cleaning or prescriptions, shining shoes, cleaning the house, planning a vacation. Of course, a lot of people who worked for Enron never got to take vacations-they were too busy making money-but they could use the company gym and the company's personal trainers. If they were overweight or wanted to quit smoking, they could join Enron's Wellness Program. Massages were offered six days a week, from seven in the morning until ten at night. "They were so cutting edge," rhapsodizes someone involved with the company health care program at the time. "They really thought about the psychology and what it took to keep these people going."
Skilling handed out titles analogous to those at Wall Street firms-analysts, associates, directors, and managing directors-but everyone knew that those titles didn't really matter. Money did. Instead of competitive salaries and decent bonuses, Enron offered competitive salaries and merit-based bonuses-with no cap. "If you really worked hard and delivered results, you could make a lot of money," says Ken Rice, who stayed with Enron for 21 years until resigning recently as the head of the company's faltering broadband division. Or, as the saying goes, you got to eat what you killed. Gas traders with two or three years of experience could wind up with a $1 million bonus. And the more you produced, the closer you got to Jeff: Real hot dogs joined him glacier hiking in Patagonia, Land Cruiser racing in Australia, or off-road motorcycling in a re-creation of the Baja 1,000 race, ending at a spectacular Mexican villa. "Every time he'd speak, I'd believe everything he'd say," one loyalist says.
And why not? By 1995 Enron had become North America's largest natural-gas merchant, controlling 20 percent of the market. But at a company where the buzzword was "aggressive," that was no place to stop: Skilling and Lay believed the Gas Bank model could easily be applied to the electricity business. Firmly committed to the notion that a deregulated market meant better service at lower prices for consumers (and untold profits for Enron), they began barnstorming the country, pressing their case with entrenched power company presidents (who, with their multimillion-dollar salaries and monopoly service areas, had little incentive to change) and energy regulators (who were somewhat more receptive, thanks in part to Enron's generous lobbying efforts).
But the biggest winner of all was probably Jeff Skilling. In 1997 Ken Lay made him the president and chief operating officer of the company. By then, the division known as Enron Capital and Trade Resources was the nations largest wholesale buyer and seller of natural gas and electricity. The division had grown from two hundred to two thousand employees, and revenues from $2 billion to $7 billion. "Mr. Skilling's experience so far with the turmoil in the industry has convinced him that he is on the right track," the New York Times noted. Everyone would certainly have thought so: Enron and Skilling had totally transformed one industry and were well on their way to transforming another.
"FIRING UP AN IDEA MACHINE; Enron Is Encouraging the Entrepreneurs Within," sang the New York Times in 1999. "In the staid world of regulated utilities and energy companies, Enron Corp is that gate-crashing Elvis," crowed Fortune in 2000. Wall Street was demanding tech-size growth on a tech timetable, and Enron, in 2000, obliged with second quarter earnings of $289 million, up 30 percent from the previous year. That year the company seemed to discover a market a minute: Under Skilling, Enron was trading coal, paper, steel, and even weather. No one blinked when a London wine bar became an Enron client. People drank more in warm weather than cold, so why not buy a hedge against the usual winter downturn?
But most exciting to the financial world was Enron's entry into high-tech communications. Because of the company's marketing dominance, EnronOnline became another overnight success, handling $335 billion in commodity trades online in 2000. Enron, as usual, made its money on the spread between the bid price and the asking price. Then there was the broadband business: To Enron, trading excess capacity in large, high-speed fiber-optic networks (empty lanes on the fabled information highway) wasn't that different from trading the capacity of natural gas pipelines. So Enron created a market for what the industry calls bandwidth. Soon after, it also announced a twenty-year deal with Blockbuster to deliver movies on demand electronically to people in their homes. Enron looked like a company that couldn't lose. "Its strategy of building businesses, shedding hard assets, and trading various commodities can help it do well even in an uncertain market," BusinessWeek insisted.
There was, however, another reason Enron did so well in such a short time: the company's hard-nosed approach toward its customers. The old notion of customer service was based on the long haul-you had to nurse and coddle customers to keep them. But Enron had new markets and new ideas-customers had to come to it. Over time, the company stopping referring to its business clients as customers and began calling them "counterparties."
Skilling wanted the biggest profits on the shortest timetable: Gains were maximized by creating, owning, and then abandoning a market before it became overtaxed and overregulated. So if you wanted to launch a high-risk venture quickly-such as Zilkha Energy's new high-tech approach to drilling for oil-you got your financing from Enron because a bank would take forever to underwrite the project, if it ever would. But because Enron invented its markets and subsequently dominated them, Enron could set the terms of its deals, from the timeline to the method of accounting to whether the deal happened at all.
While many businesses used what was known in the industry as "mark-to-market accounting," for instance, Enron used it on an unprecedented scale. The company priced their deals at current market value-but it was always Enron's idea of the market value; companies that balked at their pricing didn't get deals. And while old-fashioned companies spread their profits out like annuities over a period of years, Enron took most of its profit up-front. However many millions would be made on a deal that covered several years, they went on the books in the current year. If a few analysts thought there might be something fishy about what they called "subjective accounting," investors didn't particularly care as long as the profits rolled in. As the market fluctuated and the landscape changed, the company might abandon a project that had been in the works for months because its profit margins weren't going to be high enough. "Enron is known for leaving people at the altar," says one former employee. Winning the highest possible profits for the company could even extend to Enron's attitude toward charity. When a fundraiser for the Houston READ Commission, a literacy group, called on Enron for a contribution, it was suggested that he start raising money for Enron's competing literacy charity: "Even the person who was supposed to give money away for Enron was supposed to make money for Enron," he says.
As Enron became more and more successful, the culture Skilling had created took on a dark side: The competition turned inward. As one member of the Enron family put it, "It became a company full of mercenaries." The change started at the bottom. As Enron's domination of the energy market grew, most of the recruiting frills fell away. New associates were treated much like the commodities the company traded. Global Change's Enron spies reported overhearing orders like "I need a smart person-go buy me one" or "Buy me an intelligent slave, quick." Enron had never been the kind of place where people sang to you on your birthday, but now the workaholism bordered on self-parody: A Random Acts of Kindness program lasted only a few months. It was too disruptive. People couldn't get their work done.
And, of course, Enron had a program for institutionalizing creative tension. The Performance Review Committee, which had initially been installed by Skilling in the Capital group, became known as the harshest forced ranking system in the country. Employees were rated on a scale of one to five, and those with fives were usually gone within six months. (The PRC's nickname quickly became "rank and yank.") It was a point of pride that Skilling's division replaced 15 percent of its workforce every year. As one Skilling associate put it, "Jeff viewed this like turning over the inventory in a grocery store." Skilling's approach to business-get in and get out-had become Enron's attitude toward its workers. In time, it would become many workers' attitude toward the company. Teamwork, never that valuable in a trading culture, went the way of the eyeshade and the abacus. If protocol required an Enron higher-up to come from Europe to help with a project in the Third World, he might help-or he might not, depending on whether another, potentially more lucrative project was pending elsewhere.
Everyone felt the pressure to perform on a massive scale at massive speed: "They were so goal oriented toward immediate gratification that they lost sight of the future," says one former employee. Anyone who couldn't close deals within a quarter was punished with bad PRC scores, as were the higher-ups who had backed them. Past errors and old grudges were dredged up so often as new ammunition in PRC meetings that the phrase "No old tapes" became an Enron clich?. "People went from being geniuses to idiots overnight," says one former Enron executive.
In such a hothouse, paranoia flowered. New contracts contained highly restrictive confidentiality agreements about anything pertaining to the company. E-mail was monitored. A former executive routinely carried two laptops, one for the company and one for himself. People may have been rich at Enron, but they weren't necessarily happy. One recruiter described the culture this way: "They roll you over and slit your throat and watch your eyes while you bleed to death."
BEFORE JEFF SKILLING COULD TRANSFORM ENRON from the world's leading energy company into the world's leading company, he had to make one more change: Just as he had done ten years before, Skilling had to purge the company of its remaining old order. Where Enron once prized cautious executives who dealt with tangible assets like pipelines, it now valued bold executives who dealt with intangible assets. Pipelines, power plants-they may have been Enron's pride, but Skilling wanted them gone. Expensive, long-term building projects had no place when Wall Street was devoted to quick profits and enormous returns on investment capital, and Skilling knew it. "It wasn't the time for long-term approaches," an Enron executive says of Wall Street's mood. "It was the technology era."
To rid Enron of the last vestiges of its past, Skilling had to take on Rebecca Mark, long considered his rival for the CEO's job. Mark was for many years the poster child for the Enron way: Young, attractive, aggressive-her nickname was Mark the Shark-she came from sturdy Midwestern stock but had the requisite Harvard MBA. Mark was largely responsible for the success of Enron International, the asset-heavy side of the company where she developed $20 billion worth of gas and power plants, which accounted for 40 percent of Enron's profits in 1998. For this she reaped breathtaking compensation-one Enron executive estimated $10 million-and adoring press clips, including two appearances on Fortune's list of the fifty most powerful women in corporate America.
But then Mark ran into trouble with a gas-fired power plant in Dabhol, India, one of the largest ever constructed. She had played the game the Enron way: Taking Enron into a new market, she had finagled low import taxes (20 percent instead of the usual 53) and hung in through 24 lawsuits and three changes in government. But the time and expense needed to make India and other Enron plants around the globe successful did not mesh with Enron's goals, and Skilling's impatience with Mark grew.
Forcing Mark out, however, was no easy matter. Key executives left, divisions were dismantled, but she remained. The truth was Enron didn't mind firing lower-level employees, but it hated to fire the kind of aggressive, relentless people it tended to promote. The company preferred humiliation-keeping a director in his cubicle, say, but failing to include him in the glamour deals, or kicking someone upstairs with a fancy title. (One particularly difficult executive won a few years at graduate school, gratis.) A company as smart as Enron could probably deduce too that dispatching one of the most visible businesswomen in the country would provoke a public-relations disaster. So Lay and Skilling did something classically Enronian: They gave Mark her own company. Despite Skilling's contempt for asset-heavy businesses, Enron spent more than $2 billion to buy a run-of-the-mill British water utility that could serve as Enron's entry into the emerging world of water privatization. Mark was put in charge of making Enron, yes, the world's greatest water company. Azurix, as the new business was called, looked like another sure thing: Its IPO in 1999 raised $695 million.
But Mark had to succeed on Enron's increasingly abbreviated timetable in a business fraught with political and emotional complexities. Water is not like gas or electricity-owners and governments are a lot less willing to give it up, even for lots of money. The company stumbled, layoffs commenced, and confidence evaporated. By August 2000 the stock price, which had started out at $19, had fallen to $5. Mark's resignation followed, and Azurix, much diminished, was folded into Enron. "I think it's best for Rebecca to start afresh," Lay, who had been a mentor to Mark, told the Wall Street Journal. Or as one critic put it, "They were more interested in destroying the old culture than running a business."
As 2000 drew to a close, Skilling was in total command. In December Ken Lay announced the inevitable: "The best time for the succession to occur is when the company is doing well," he told the press. "Enron is doing extremely well now." In February 2001 Jeff Skilling took over the CEO's job.
ALMOST IMMEDIATELY THE TROUBLE STARTED. Enron's domination of the electric-power market made it an instant target in the California deregulation debacle. Both PBS's Frontline and the New York Times took on Enron, portraying the company as a heartless colossus that used its influence in Washington (Lay and Enron's political action committee are the top contributors to George W. Bush) to force old people on fixed incomes to choose between buying food or electricity. Skilling and Lay appeared on camera singing belligerent anthems to the free market, while another memorable scene juxtaposed one of the company's jackallike traders against a hapless state employee in California, as both tried to buy power online. The Times reported that Lay had tried to persuade a new federal commissioner to change his views on energy deregulation. The bad press was, to say the least, ironic: Just as the media was pounding Enron for its omnipotence, Wall Street was discovering its weaknesses. By late March the stock price had slid to $50 a share from $80 in January.
Within Enron, the asset-based divisions took the rap for the decline. (The India plant continued to be enormously costly, at least in part because of constant turnover within Enron's management team.) But the California situation was more visible and therefore more damaging, despite Enron's claim that the state had never built enough power plants to service its population and never properly managed those it had. "For three months Gray Davis did a very good job of blaming us," says Mark Palmer, a vice president for corporate communications. "We were a Texas company. There was a Texan in the White House. California was a state that didn't put him in office, and his biggest contributor was a Texas energy company. Performance is going to take care of our stock price. The truth will take care of Gray Davis." (California utilities still owe Enron $500 million, another reason stockholders might be panicky.) But more problematic than the crisis itself was Skilling's all too apparent lack of contrition. Facing down his critics, he cracked a joke comparing California with the Titanic. ("At least the Titanic went down with its lights on.")
But the biggest problem was Enron's telecommunications division, which had been responsible for at least one third of its heady stock price. Investors believed that Enron could revolutionize high-speed communications, just as it had revolutionized gas and power. Enron estimated the global market for buying and selling space over fiber-optic cable would grow from $155 billion in 2001 to $383 billion by 2004-but then the tech bubble burst. So too did the much-hyped movies-on-demand deal with Blockbuster. For the first time in its confoundingly successful life, Enron had nothing new to take to market. Like the popular high school girl who suddenly packs on a few pounds, Enron suddenly looked less alluring to Wall Street.
Skilling launched a campaign to keep Enron's most important cheerleaders, the stock analysts, in the tent, but he wasn't cut out to be a supplicant. During the reporting of first quarter profits, he called an analyst who challenged Enron's financial reporting an "asshole." When the company reported hefty second quarter profits, many analysts questioned whether those profits had come from the generation of new business or from the sale of old assets. Ignoring the growing chorus critical of Enron's accounting, Skilling promised, as he always had, that innovations were just around the corner. "There wasn't any positive news," Carol Coale, of Prudential Financial, says now. "Basically, he talked me out of a downgrade."
The business press, so generous in the past, turned surly. Fortune had asked in March whether Enron was overpriced. ("Start with a pretty straightforward question: How exactly does Enron make its money?") The routine cashing in of stock options that were about to expire by key executives was portrayed in the media as a fire sale. (Skilling had sold $33 million worth, Ken Lay and Ken Rice close to four times that amount.) Then the Wall Street Journal reported on a fund run by the CFO that had been a source of strife within the company. (It was essentially risk management against Enron's possible failures.) Every negative story seemed to produce a concurrent drop in the stock price: By late August it had fallen below $40. Enron, so institutionally unforgiving, finally got a taste of its own medicine. "When Wall Street is in love with a stock, they're forgiving of something like accounting," says Carol Coale. "When a company falls out of favor, all these issues carry more weight."
This fact was not lost on people inside the company, who suddenly started experiencing an attack of conscience. Those who had looked the other way as the most powerful Enron executives dumped their wives and married their secretaries or carried on flagrant interoffice affairs now saw the error of their ways. "It just created an attitude," one executive still at Enron says. "If senior people are doing that, why are we held to a higher standard? There was a real culture of 'We're above everyone else.'"
Loyalty had never been prized at Enron, so there was no reason to expect it now. An old-fashioned, slow-moving company like Exxon could demand hardship duty in Baku with the promise of greater rewards down the road. "But," as one Houston oilman explains, "if you have to negotiate a hardship duty with someone who doesn't have loyalty and has money, then you have a corporation that's better suited for good times than bad."
As it turned out, that description applied to Jeff Skilling too. As the stock price stubbornly refused to ascend, he made no secret of his unhappiness and frustration. Then, after a trip to visit the families of three employees killed at a plant in England, he had an epiphany: Life was short; for him, Enron was over. Ever stoic, Ken Lay returned to the CEO's office, named a new president, arranged a trip to New York to calm analysts and investors, and promised a kinder, gentler Enron in the future. Trading anything and everything was out. The company, Lay says, will still innovate but "innovate much closer to our core." As for the culture: "Things like the Performance Review Committee, I think we could have applied better. By trying to categorize people into so many different categories, you ended up creating a morale problem."
That Skilling's supposedly brilliant colleagues were as shocked at the news of his departure as the rest of the business community may be testament to their lack of emotional intelligence. Despite Skilling's lengthy tenure with Enron, he'd always been contemptuous of the long haul; he'd always believed in cutting losses and moving on. But now that he was abandoning them when the company was in trouble, it was different. "Even Jeff's biggest detractors wouldn't have wanted him to walk out the door," one loyalist admits.
But on the day we meet, Skilling is looking forward, not back. "Look," he says with finality, "ninety percent of my net worth is in Enron. Were my interests aligned with the shareholders? Absolutely."
Free of falling stock prices and shareholder pressures, he is nestling himself back into the world of ideas. His eyes flash as he talks about new technologies. "The first wave never gets it right," he says. "The stand-alone dot-coms didn't work, but the technological applications will create a second wave that will change the world." Houston, he promises, will become the world's center of commodity trading, and he intends to be a part of it. In fact, he is already shopping for office space.
"This is the second wave, and Enron's got it," he says, almost breathless. "There are thousands of people running around the streets of Houston that get it."


The Policy Committee has been asked to join the Board for lunch following the
meeting on December 12th in 50M Dining. Please let us know if you have any
questions. Regards, Rebecca


Tomorrow's SWAP meeting has been canceled.  Next meeting - Wednesday, December 5.

Holly Keiser
Enron Wholesale Services
Legal Department
Phone: 713-345-7893
Fax: 713-646-3490
Location: EB 3887
Holly.Keiser@enron.com


I'll be out completely by Friday evening, and am finishing the list of
workers who done various projects on the house, and will have that to you
Friday as well via email.  I really appreciate your giving me the extra
time....

Jeff


Just spoke with Sean Crandall - he killed deal #499391. This has happened
before, and seems to be a glitch in Deal Blotter when traders enter off peak
deals. I'll talk with IT about it; but thanks for catching this in the
meantime.

Kate

Evelyn Metoyer@ENRON
01/18/2001 10:52 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: deal 499391

Hi Kate,

For Ref 499391 I don't think this is a good deal because Prebon only shows
one off-peak deal like this and it is our reference 499390.

Thanks


Hello, Jeff,

I know you must be quite busy with calls for interviews following your
recent announcement that you were leaving Enron. However, I'm hoping if you
have a moment today, you could provide 2 or 3 quotes about your decision
and where you're heading next for McKinsey & Company's internal news Web
site, NewsNetwork, which has loyal readership across our Firm.  Our
upcoming deadline is tomorrow afternoon in time for our Monday, August 20
edition.  Given that we covered you once before on NN (see article below)
we believe this article would make for an important and worthy follow up.

I will take the liberty of calling you today to ensure you received this
message. Thank you in advance for your time and consideration.

Warm Regards,

Wylie Goodman
Managing Editor
212-415-1316
------------------------------------------
Questions:

1. Can you elaborate more on the reason behind your decision to leave
Enron?
2. What are the most important accomplishments you feel you've achieved
during your tenure as CEO?
3. Do you have any immediate or mid-range plans for yourself personally or
professionally that you can share?
---------------------------------------------

Below is the first NewsNetwork article about your appointment to CEO:

Skilling named CEO at Enron
Dallas alum, longtime President and COO, elected CEO of the $80 billion
energy marketer.

Jeff Skilling (DA 1979-90) joined Enron in 1990, and became COO in 1996.
Under his leadership, Enron expanded its focus from natural gas pipelines
to become the largest gas and power marketer in the United States, as well
as diversifying into risk management and broadband capacity trading.
Kenneth Lay, Chair of Enron's board, told reporters, "Jeff is a big part of
Enron's success, and is clearly ready to lead the company."

Early in his tenure, Skilling helped the company exploit the newly
deregulated natural gas market by developing business models for efficient
trading and risk management. These became the template for the range of
commodity exchanges that now populate Enron's portfolio. McKinsey
contributed as well: Suzanne Nimocks (HO), the Enron co-DCS, says, "We've
worked very closely with Enron and Jeff on launching many of their new
businesses: gas trading, power trading, and pulp and paper."

After 11 years with the Firm, Skilling went to Enron well-versed in
McKinsey culture. According to Suzanne, "Jeff has done a really fine job of
leveraging the strengths of McKinsey and replicating them at Enron. Their
associate analyst program and their personnel review process are modeled on
McKinsey's. He's been able to extract those elements that make McKinsey
special and replicate them in a corporate setting."

Co-DCS Ron Hulme (DA) adds: "For those of us on the CST, it is sometimes
hard to tell whether we are at Enron or back at the office. The great news
is, with Jeff's distinctive leadership, it all works brilliantly."

Enron ranks #18 in the Fortune 500. With revenues topping $60 billion for
the first 9 months of this year, the company is on track to double 1999
results.

+-------------------------------------------------------------+
| This message may contain confidential and/or privileged     |
| information.  If you are not the addressee or authorized to |
| receive this for the addressee, you must not use, copy,     |
| disclose or take any action based on this message or any    |
| information herein.  If you have received this message in   |
| error, please advise the sender immediately by reply e-mail |
| and delete this message.  Thank you for your cooperation.   |
+-------------------------------------------------------------+


Sorry forgot the attachment

 Albert Escamilla (Global Counterparty)

 -----Original Message-----
From: 	Lebrocq, Wendi
Sent:	Wednesday, November 21, 2001 8:34 AM
To:	Lambert, Karen; Jones, Tana; Schott, Samuel; Brackett, Debbie R.; Clark, Cynthia; Enron Europe Global CounterParty,; Sever, Stephanie; Moran, Tom; Clark, Claudia; Bradford, William S.; Lees, Lisa; Fayett, Juana; Le, Trang; Maley, Paul; O'day, Karen; Rohauer, Tanya; Lombardi, Kelly; Lindsay, Brian; EOL Call Center; Hare, Bill D.; Lafuze, Molly; Clark, Danny; Panus, Stephanie; Mandola, Teresa; Ebow, Amber; Coleman, Tandra; Campbell, Lesli; Taylor, Mark E (Legal); Lauer, Kara; Banner, Kimberly; Mcquade, Jennifer; George, Fraisy; Guillory, Michael; Rajaram, Aparna; Monterrey, Maribel; Lebeau, Maria; Escamilla, Albert; Lebrocq, Wendi; Global Emerging Businesses; Curry, Ken
Subject:	EOL and Clickpaper Approvals for 11-16-01

Please see attached.

 << File: EOL 11-16-01.xls >>
Regards,

Wendi LeBrocq
3-3835


Welcome to eMail News Delivery, a service from Business Wire.
Here is your Industrial Information Resources Inc. news release.
If you have received this in error please send a message to:
eMailDelivery@businesswire.com
with the following command in the body of the message:
 unsubscribe TX-INDUSTRIAL-INFO-RES
If you have questions about this service, please contact your
Business Wire Account Executive or service@businesswire.com

BW2047  OCT 24,2001       4:46 PACIFIC      07:46 EASTERN

( BW)(TX-INDUSTRIAL-INFO-RES) TVA Starts Construction of the Nation's
First Energy Storage Plant, in an Advisory by Industrialinfo.com

	   Business Editors & Energy Writers

	   HOUSTON--(BUSINESS WIRE)--Oct. 24, 2001--The following is an
advisory by Industrialinfo.com (Industrial Information Resources, Inc;
Houston, Texas). The Tennessee Valley Authority (NYSE:TVB)(NYSE:TVC)
recently started construction of the nation's first large scale power
storage facility at a two acre site off of Highway 373 just east of
the Air Force Base near Columbus, MS. Construction of the $25 million
facility is expected to take 18-24 months to complete, creating
roughly 60 jobs before the project is finished in 2003. "This
innovative energy-storage plant is designed to improve power
reliability and customer service, have limited environmental impact
and contribute to economic growth for consumers in Mississippi and
throughout the Tennessee Valley," says TVA Chairman Glenn McCullough
Jr. "TVA continues to set the pace for energy production and
demonstrate its role as a national leader in the use of cutting-edge,
21st-Century technologies."
	   The plant was designed by Regenesys Technologies Limited, part of
Innogy plc (UK) and utilizes regenerative fuel cell technology. During
periods of low electrical demand the cells are charged with
electricity generated at other locations. The stored energy is then
released during times of demand. The power storage facility is
designed to store up to 120 megawatt-hours of energy and will be
capable of providing power to 7,500 homes for up to 10 hours. "This
will be the first use of the Regenesys technology in the United
States," said Regenesys Technology Chief Executive Officer Andrew
Duff. Rengenesys and Innogy are currently building a similar plant in
the United Kingdom scheduled for completion in 2002.
	   Industrialinfo.com provides daily news related to the industrial
market place including industry alerts and databases for the energy
and industrial markets. For more information on trends and upcoming
construction activities in the Energy Markets as well as other
industrial sectors send inquiries to powergroup@industrialinfo.com or
visit us at www.industrialinfo.com.

    --30--JB/na*

    CONTACT: Industrial Information Resources Inc., Houston
             Joseph Govreau, 713/783-5147

    KEYWORD: TEXAS MISSISSIPPI
    INDUSTRY KEYWORD: ENERGY UTILITIES
    SOURCE: Industrial Information Resources, Inc.

For the best viewing of the news releases please
 use the following email settings:  Courier 10 point.
 -Notice of Copyright and General Disclaimer-
 (c) 2000 Business Wire. All of the releases provided by Business Wire
 are protected by copyright and other applicable laws, treaties and
 conventions. Information contained in the releases is furnished by
 Business Wire`s members who are solely responsible for their content,
 accuracy and originality. All reproduction, other than for an
 individual user`s reference, is prohibited without prior written
 permission.

- Notice of Copyright and General Disclaimer --
(c) 1999 Business Wire. All of the releases provided by Business Wire
are protected by copyright and other applicable laws, treaties and
conventions. Information contained in the releases is furnished by
Business Wire`s members who are solely responsible for their content,
accuracy and originality. All reproduction, other than for an
individual user`s reference, is prohibited without prior written
permission.


Date: Wed, 14 Nov 2001 12:25:31 -0500
From: "John Heisey" <jcheisey@tecoenergy.com>
Cc: "Jerry Watson" <jmwatson@tecoenergy.com>,	"Kenneth Parker" <kbparker@tecoenergy.com>,	"Michael Trobaugh" <mjtrobaugh@tecoenergy.com>,	"Stephanie Mchargue" <slmchargue@tecoenergy.com>
Subject: Frontera/TPS Hourly Desk Contacts
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_AFF56BA5.2D4C6401"

Attached is a list of the Hourly Desk contacts for the Frontera plant.  Please use the main phone number for all Frontera communications.  The voicemail number can be used for non-urgent messages.  In addition, home and cell numbers are provided in case of emergency.  Thanks.

John

 - TPS Hourly Desk Contact List.doc


From: Save Our Rockets

This is probably the last update you will receive prior to election day.
Make sure to get out and vote for the arena and tell your friends, family
members, co-workers and total strangers to do the same!

In this update:

ELECTION RESULTS
MONDAY RALLY
WORKING THE POLLS
ELECTION NIGHT PARTY

----------
ELECTION RESULTS

For those of you not near a TV or unable to attend the election night party
(see below), Save Our Rockets and Comets is proud to bring you
up-to-the-minute election results right on the website beginning at 7pm on
Tuesday evening.

We will have updates as often as possible so you can follow the returns
right on your computer screen!  A big thanks to Dave from
http://www.ClutchCity.net and Randy from http://www.LiveHosting.com for the
help getting that done.

----------
MONDAY RALLY

The final rally of the election will be from 4pm to 6pm Monday afternoon at
campaign headquarters (downtown at the corner of Crawford and Clay).
Featured guests include Congresswoman Sheila Jackson Lee and Rocket players
Steve Francis, Shandon Anderson and Walt Williams.

Come on down and give the arena vote one final send off!

----------
WORKING THE POLLS

Most of you already know that we will be out working the polling locations
on Tuesday.  If anyone is still interested in helping out, please let us
know and we'll get you hooked up.

Call me at 713-880-3733 for more info.  We can use any and all help that
day.  Thank you.

----------
ELECTION NIGHT PARTY

Everyone is invited to the official arena campaign election night party at
the Hyatt Regency's Regency Ballroom on Louisiana Street in downtown Tuesday
night.

The party gets started at 7pm and will last on into the night.  TV's will
broadcast election results all night (and hopefully the game!) and there
will be food and entertainment.

Thanks for all your support.  Now, get out there and VOTE!

-- Jeff

---------------------
This message brought to you by http://www.SaveOurRockets.com . To remove
yourself from this email list, click the following link:
http://www.saveourrockets.com/email_remove.cfm?email=mballases@hotmail.com&id=
1265

_________________________________________________________________________
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.


Attached is a summary of the Jan 13 Davis-Summers summit on the California
power situation.  We will be discussing this at the 2:00 call today.


I would like to receive the alerts.

D

Brandee Jackson@ENRON
02/07/2001 10:50 AM
To: Suzanne Calcagno/NA/Enron@Enron, Robert Superty/HOU/ECT@ECT, Bob M
Hall/NA/Enron@Enron, Donna Greif/HOU/ECT@ECT, Diane H Cook/HOU/ECT@ECT,
Edward Terry/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Victor
Lamadrid/HOU/ECT@ECT, George F Smith/HOU/ECT@ECT, Katherine L
Kelly/HOU/ECT@ECT, Patti Sullivan/HOU/ECT@ECT
cc:
Subject: E-mails

Are you interested in receiving these alerts?
   Please advise.

---------------------- Forwarded by Brandee Jackson/NA/Enron on 02/07/2001
10:50 AM ---------------------------

Lyelle Bellard
02/07/2001 10:28 AM
To: Laura Vuittonet/Corp/Enron@Enron, Ina Rangel/HOU/ECT@ECT, Becky
Young/NA/Enron@Enron, Kimberly Brown/HOU/ECT@ECT, Airam Arteaga/HOU/ECT@ECT,
Jessica Presas/Corp/Enron@ENRON, Heather Choate/HOU/ECT@ECT, Elizabeth
Soto/HOU/ECT@ECT, Brandee Jackson/NA/Enron@ENRON
cc: Steve Bigalow/NA/Enron@Enron

Subject: E-mails

Please send the e-mail addresses of the traders in your group, to Steve
Bigalow, he will put them on an alert list for reversal signals on the gas
charts

           Thank You
           Lyelle J. Bellard


As per your request, attached herewith is a memorandum on the above mentioned
subject.

(See attached file: #455536 v3 - Memo to Elizabeth Sager & Mark Taylor of
Enron
North America Corp..doc)

J.K.B.

|------------------------------------------------------------------|
|NOTE:  The information in this email is confidential and may be   |
|legally privileged.  If you are not the intended recipient, you   |
|must not read, use or disseminate the information.  Although this |
|email and any attachments are believed to be free of any virus or |
|other defect that might affect any computer system into which it  |
|is received and opened, it is the responsibility of the recipient |
|to ensure that it is virus free and no responsibility is accepted |
|by Cadwalader, Wickersham & Taft for any loss or damage arising in|
|any way from its use.                                             |
|------------------------------------------------------------------|

 - #455536 v3 - Memo to Elizabeth Sager & Mark Taylor of Enron North America
Corp..doc


---------------------- Forwarded by Scott Neal/HOU/ECT on 10/13/2000 03:59 PM
---------------------------

	Enron North America Corp.

	From:  Corporate Benefits @ ENRON                           10/12/2000 06:23
PM

Sent by: Enron Announcements@ENRON
To: All Enron Worldwide employees
cc:
Subject: Open Enrollment 2001

Open Enrollment 2001 is going on now through October 22nd, 5pm CST for
regular full-time and regular part-time employees.  Your 2000 elections will
automatically rollover for 2001, so if you don,t want to make any changes, DO
ABSOLUTELY NOTHING!  Annual elections for all Flexible Spending Accounts will
rollover too!  Yes, you heard right ) ALL 2000 ELECTIONS WILL AUTOMATICALLY
ROLLOVER FOR 2001, INCLUDING SPENDING ACCOUNTS!

To make it even more convenient, print your 2001 confirmation statement right
from the web site and you,re finished!  Sound easy?  It is!  Don,t have your
packet?  No problem!  You can access the enrollment 2001 web site and print
your personal worksheet right from your desktop.  Call Benefits at
1-800-332-7979, Option 1, for additional information or assistance.
Confirmation statements will be mailed to your home at the end of October and
final changes for 2001 can be made via the web or IVR from 11/8-11/15.

Logon to WWW.ENRON.BENEFITSNOW.COM today!

QUICK FACTS
? 100% Default for All Current Elections and Spending Accounts ) Don,t Want
to Make a Change?
 Then Do Absolutely Nothing ) Your 2000 annual election will ROLLOVER for
2001!

? $250 Medical Deductible Plan for Employees Residing Outside of a Network
Area

? HMO plans going away )
Coventry Health Care of Iowa (formerly known as Principal Health Care)
Presbyterian Health Plan
HealthNet of Oregon (formerly known as Qual/Med)
Blue Shield of California

? Orthodontia treatment is NOT considered a pre-existing condition under the
Enron Corp. Dental Plan.
 The Plan will coordinate with other coverage based on coordination of
benefit (COB) rules.
 (Contact MetLife at 1-800-492-8588 for specific details and information)

? New Hires who make their 2000 elections by 10/16 will receive their 2001
packets the first week of
 November for enrollment during 11/8-11/15; elections not in by 10/16 will
require a manual enrollment
 for 2000 and 2001 and must be made within 31 days of their hire date

? Provider directories can be accessed directly from the enrollment 2001 web
site or - 1) link directly
 to the providers through the HR/Benefits Intranet Website or 2) go directly
to the source by logging
 on through the web at:

www.cigna.com        www.vsp.com
www.provider.uhc.com/enron     www.merck-medco.com


I am interested in being part of this effort if there is still room

Cara Semperger
West Power Scheduling Supervisor
Enron North America
503/464-3814


Greetings Paul:

Eric Boyt advised that TWPL was not in a position to deliver the full volume of approx. 363,000 mmbtu for the remainder of the month for the account of Enron Compression Services.  This would have been good information to know BEFORE we sold the gas.  I left a couple of messages today but never heard from you.  Unfortunately, we have sold this volume, at your repeated request, and are not in a position to retrade the deal.

To the extent TWPL is unable to perform, please call Janie Tholt or Randy Gay to see if they can reduce the commited volume.

I am scheduled to be out tomorrow but may have to come in for the afternoon.

Please advise ASAP.

Ragards,

Stephanie
x31688


I'll have Joseph clean up the letter and send you the email/fax #'s etc. for
the list, for the cards that I gathered.

Best,
Jeff

----- Forwarded by Jeff Dasovich/NA/Enron on 05/22/2001 10:51 AM -----

	Karen Denne
	05/22/2001 12:45 AM

		 To: Jeff Dasovich/NA/Enron@ENRON
		 cc:
		 Subject: HELP -- CEO email

Jeff -- Thanks for your phone message.  I'm stuck and need your help.  My
Microsoft Word isn't working, and I want to send something out to the ceos
asap tuesday.  Can you clean up the letter?  I'm fine w/ your edits (for the
signature line, add "name, title")  Pls send me the final letter so I can
detach.  i've left a message for steve and will wait to send until i hear
from him.

I'm didn't collect biz cards from everyone at the CEO meetings, and I need
email and/or fax numbers for:

Tony Ridder
Steve Kirsch
Ken Oshman
Fred Anderson
Dan Scheinman
Vivek Ranadive
John Doerr
Ray Irani

Can you send me the info from their cards?  Call me if you have any
questions.  THANK YOU!!!

kd


hey- are you feeling better today?  meetings meetings meetings


---------------------- Forwarded by Darron C Giron/HOU/ECT on 10/27/2000
09:57 AM ---------------------------

Phillip M Love
10/10/2000 01:37 PM
To: Darron C Giron/HOU/ECT@ECT
cc:
Subject: Jenny's Resume

Here it is...you gonna split the money with me right??

---------------------- Forwarded by Phillip M Love/HOU/ECT on 10/10/2000
01:29 PM ---------------------------

Scott Crowell <scott.crowell@oracle.com> on 06/09/2000 10:51:45 AM
To: Phillip Love <Phillip.M.Love@enron.com>
cc:
Subject: Jenny's Resume

Phil,

I have attached Jenny's resume.  Don't forget to fill out the paperwork
before you pass the resume along so you get credit.  Please try and do
this as soon as you can.  Thanks.

Scott

 - Jenny Resume.doc
 - scott.crowell.vcf


Hi,
I am trying to retrieve some analysis that I did while I was in Houston. It
is very imporatant that I get these files asap as I need to continue the
correlation analysis for the UK Power/Gas desk. I have put in a request to
the Resolution Center in Houston to try and get a back up but
would like to know if anyone has any further suggestions? I was not told that
the files in this folder were periodically deleted.
I think Tanya should have a copy of these files but do not know where she is
likely to store them.
Thanks in advance,
Kirstee


What is this attached list?  Have I seen it before?

	Camille Gerard@ENRON
	08/08/2000 06:07 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc: Jarrod Cyprow/HOU/ECT@ECT
		 Subject: National Gypsum

Tana,
I see that National is pre-approved in Credit but I want to make sure
that Legal is covered.  I think that it will be but just in case the CP ID
is 26316.
Thanks.
Camille


TODAY'S HEADLINES
The New York Times on the Web
Saturday, January 26, 2002
------------------------------------------------------------
For news updated throughout the day, visit www.nytimes.com

QUOTE OF THE DAY
=========================
"I am disappointed in Yasir Arafat."
-PRESIDENT BUSH

http://www.nytimes.com/2002/01/26/international/middleeast/26DIPL.html?todaysheadlines

NATIONAL
=========================
U.S. Identifies a Canadian as Taker of Martyrdom Pledge

The Justice Department identified a Canadian citizen as the
fifth suspected Al Qaeda follower who is said to have
pledged himself to martyrdom.
http://www.nytimes.com/2002/01/26/national/26INQU.html?todaysheadlines

-----

Father in Killing at Hockey Rink Receives 6 to 10 Year
Sentence

Thomas Junta, convicted of beating another father to death
at a practice youth hockey practice game, was sentenced to
6 to 10 years in prison.
http://www.nytimes.com/2002/01/26/national/26HOCK.html?todaysheadlines

-----

A Harvard Star in Black Studies Joins Princeton

K. Anthony Appiah resigned his position at Harvard
University to accept an offer to join the faculty of rival
Princeton University.
http://www.nytimes.com/2002/01/26/education/26PRIN.html?todaysheadlines

-----

MORE NATIONAL NEWS:
http://www.nytimes.com/pages/national/index.html?todaysheadline

/--------------------- ADVERTISEMENT ---------------------\
Sign up now for DealBook for Breaking News and Market-Moving Intelligence

Your source for daily briefings on the latest
and most comprehensive news about market-moving
mergers and acquisitions, IPOs, private equity
transactions, venture capital deals and Wall Street
maneuverings, all delivered before the market's
opening bell.  Edited by Andrew Ross Sorkin.
Sign up now at:

http://ads.nyt.com/th.ad/th-nytiibhousec/dealbookhousetext.html/?_RM_REDIR_=http://www.nytimes.com/services/email/email.html#dealbook
\---------------------------------------------------------/

INTERNATIONAL
=========================
President Assails Palestinian Chief on Arms Shipment

In his harshest comments yet on Yasir Arafat, President Bush
suggested on Friday that the Palestinian leader was
"enhancing terror."
http://www.nytimes.com/2002/01/26/international/middleeast/26DIPL.html?todaysheadlines

-----

Afghans Choose Panel for Organizing Crucial Grand Council

Afghanistan marked a political milestone on Friday with the
announcement of a commission that will organize a grand
council to choose the country's next government.
http://www.nytimes.com/2002/01/26/international/asia/26AFGH.html?todaysheadlines

-----

'Sleeper Cells' in Singapore Show Al Qaeda's Long Reach

Officials have been taken aback by Al Qaeda's ability to
plant operatives in Singapore, one of the most tightly
controlled societies in the world.
http://www.nytimes.com/2002/01/26/international/asia/26SING.html?todaysheadlines

-----

MORE INTERNATIONAL NEWS:
http://www.nytimes.com/pages/world/index.html?todaysheadline

BUSINESS
=========================
U.S. to Reconsider Agency Contracts in Enron Scandal

The Bush administration ordered federal agencies on Friday
to consider dropping contracts worth more than $60 million
a year with Enron and Arthur Andersen.
http://www.nytimes.com/2002/01/26/business/26ENRO.html?todaysheadlines

-----

Blue Lights or Not, Martha Stewart Remains Calm

Kmart's bankruptcy has cast a cloud over the marriage that
helped Martha Stewart escalate from suburban caterer to
captain of her own merchandising empire.
http://www.nytimes.com/2002/01/26/business/26MART.html?todaysheadlines

-----

Questions About Loans at ImClone

ImClone Systems, already facing an inquiry into whether it
misled investors about the status of its cancer drug, made
a surprising disclosure about its chief.
http://www.nytimes.com/2002/01/26/business/26BIOT.html?todaysheadlines

-----

MORE BUSINESS NEWS:
http://www.nytimes.com/pages/business/index.html?todaysheadline

TECHNOLOGY
=========================
Amazon Looks for an Encore

Amazon is not pulling back from its initial vision. But has
it learned enough from its  achievement so far to ensure
its success?
http://www.nytimes.com/2002/01/26/technology/ebusiness/26AMAZ.html?todaysheadlines

-----

Stop, Historians! Don't Copy That Passage! Computers Are
Watching

Today's software market is flooded with programs designed to
rout out copycats with maximum efficiency and minimum
effort.
http://www.nytimes.com/2002/01/26/arts/26TANK.html?todaysheadlines

-----

Ericsson's 2001 Loss Is First in 50 Years

Ericsson, the Swedish maker of telephone equipment, reported
its first unprofitable year in half a century.
http://www.nytimes.com/2002/01/26/technology/26WIRE.html?todaysheadlines

-----

MORE TECHNOLOGY NEWS:
http://www.nytimes.com/pages/technology/index.html?todaysheadline

POLITICS
=========================
U.S. to Reconsider Agency Contracts in Enron Scandal

The Bush administration ordered federal agencies on Friday
to consider dropping contracts worth more than $60 million
a year with Enron and Arthur Andersen.
http://www.nytimes.com/2002/01/26/business/26ENRO.html?todaysheadlines

-----

Bush Calls for More Money for Border Patrols

President Bush said on Friday that he would propose spending
$11 billion next year to protect the United States' borders
from terrorist attacks.
http://www.nytimes.com/2002/01/26/politics/26BUSH.html?todaysheadlines

-----

Opponents Hope to Raise Doubts on Campaign Overhaul

Republican opponents of overhauling campaign finance
legislation suggested they would seek to stoke doubts among
lawmakers about changing the system under which they were
elected.
http://www.nytimes.com/2002/01/26/politics/26DONA.html?todaysheadlines

-----

MORE POLITICS NEWS:
http://www.nytimes.com/pages/politics/index.html?todaysheadline

SPORTS
=========================
Capriati Rallies to Retain Her Title

Jennifer Capriati successfully defended her title at the
Australian Open, beating Martina Hingis for the second
straight year with a 4-6, 7-6 (7), 6-2 victory.
http://www.nytimes.com/2002/01/26/sports/tennis/26TENN.html?todaysheadlines

-----

Waldorf Moves Up, Tryon to Move On

Duffy Waldorf was the clubhouse leader at   12 under par
after second-round play, while Ty Tryon ended the day with
virtually no chance to make the cut.
http://www.nytimes.com/2002/01/26/sports/golf/26GOLF.html?todaysheadlines

-----

Fox Accepts Challenge of Reviving Panthers

John Fox, the Giants' former defensive coordinator, is the
third head coach in the Carolina franchise's seven-year
history.
http://www.nytimes.com/2002/01/26/sports/football/26FOXX.html?todaysheadlines

-----

MORE SPORTS NEWS:
http://www.nytimes.com/pages/sports/index.html?todaysheadline

ARTS
=========================
The Women Behind the Masks of Hate

For a year, Kathleen Blee traveled America, seeking the ugly
and the dangerous. Her findings will be published in
"Inside Organized Racism: Women in the Hate Movement."
http://www.nytimes.com/2002/01/26/arts/26HATE.html?todaysheadlines

-----

Kipling Knew What the U.S. May Now Learn

The notion of "White Man's burden," Rudyard Kipling's
prescription for the United States as it began to rule the
Philippine Islands, seems peculiarly relevant in thinking
about the war in Afghanistan.
http://www.nytimes.com/2002/01/26/arts/26KIPL.html?todaysheadlines

-----

The Jupiter Orchestra Is a Lively Survivor

The scrappy Jupiter Symphony is no more, but the musicians
associated with it have formed the Jupiter Symphony Chamber
Players.
http://www.nytimes.com/2002/01/26/arts/music/26JUPI.html?todaysheadlines

-----

MORE ARTS NEWS:
http://www.nytimes.com/pages/arts/index.html?todaysheadline

NY REGION
=========================
Accommodations, Next Door to Devastation

Managers of the Marriott Financial Center hotel are trying
to provide hospitality within the perimeters of ground
zero.
http://www.nytimes.com/2002/01/26/nyregion/26HOTE.html?todaysheadlines

-----

New York City School Board Elections Postponed

On Friday, state legislative leaders said they would
postpone New York City's community school board elections
for a year as they decide whether to change how the city
school system is governed.
http://www.nytimes.com/2002/01/26/education/26SCHO-MET.html?todaysheadlines

-----

Many Voices, but Little Dialogue on Memorial for Trade
Center Site

The two groups that are dealing with what to do with the
former World Trade Center site are speaking two different
languages.
http://www.nytimes.com/2002/01/26/nyregion/26MEMO.html?todaysheadlines

-----

MORE NY REGION NEWS:
http://www.nytimes.com/pages/nyregion/index.html?todaysheadline

OP-ED
=========================
Enron for Dummies
By BILL KELLER
I know I should be outraged by the Enron scandal, but
there's a lot I still don't get. For starters, what kind of
company is Enron, exactly?
http://www.nytimes.com/2002/01/26/opinion/26KELL.html?todaysheadlines

-----

Captives and the Law
By ANTHONY LEWIS
The Bush administration has done well militarily   in
Afghanistan, but it has badly fumbled the   question of
justice for its captives.
http://www.nytimes.com/2002/01/26/opinion/26LEWI.html?todaysheadlines

-----

State of the Union, Test of the President
By MICHAEL WALDMAN
President Bush must maintain support for the war while
presenting a politically viable plan for  combating the
recession at home.
http://www.nytimes.com/2002/01/26/opinion/26WALD.html?todaysheadlines

-----

MORE OP-ED  NEWS:
http://www.nytimes.com/pages/opinion/index.html?todaysheadline

HOW TO CHANGE YOUR SUBSCRIPTION
------------------------------------------------------------
You received these headlines because you requested The New
York Times Direct e-mail service. To cancel delivery,
change delivery options, change your e-mail address or sign
up for other newsletters, see http://www.nytimes.com/email.
Check or uncheck the headlines you would like to receive
and remember to go to the bottom of the page and click on
"Save Selections." To change your e-mail address, go to our
help center: http://www.nytimes.com/help.  Suggestions and
feedback are welcome at feedback@nytimes.com.

Please include the following ID number when writing to
feedback@nytimes.com so that we can track any reports of problems:
1120577

HOW TO ADVERTISE
------------------------------------------------------------
For information on advertising in e-mail newsletters or
other creative advertising opportunities with The New York
Times on the Web, please contact onlinesales@nytimes.com or
visit our online media kit at http://www.nytimes.com/adinfo


Pilot 2 Participants!

Thanks again for participating in ClickAtHome's Pilot study.  We are very
anxious to get started and are so excited to bring this incredible benefit to
you!  We promised we would follow up this week, so here we are...

Based on feedback we have received from Pilot 1, we are taking additional
time to further integrate with our vendor websites and are expanding the
vendor offerings to bring broadband coverage to more employees.  We
anticipate ordering to begin in late December.  Please feel free to email us
at clickathomepilot2@enron.com if you have any questions.

Thanks again,
The ClickAtHome Project Team!


Calif Pwr Woes
Tuesday, September 12, 2000 08:15 AM

	?Mail this article to a friend

	(This article was originally published Monday)
	WASHINGTON (Dow Jones)--The Federal Energy Regulatory Commission has limited
authority to address flawed electricity markets in California and alleged
price gouging by power producers, but will act to overhaul the state's
wholesale power markets if necessary, FERC Chairman James Hoecker told a
congressional panel Monday.
	The commission was ready to act once the results of an expedited staff
investigation of problems affecting power markets in the U.S. West becomes
available, Hoecker said in testimony presented to a San Diego field hearing
of the House Commerce Committee's energy panel.
	"If we need to fix market rules or market structures within our jurisdiction,
we will do so," Hoecker told lawmakers. And if price gouging is occurring "as
some have alleged," he added, "we will respond accordingly, by revoking
market-based rates or otherwise."
	However, Hoecker stressed that the commission's authority is limited under
the Federal Power Act.
	"The commission has limited ability to relieve the immediate customer crisis.
Important aspects of this problem are a state responsibility, such as
authorizing construction of new generation and transmission facilities,"
Hoecker testified.
	The commission can't act to limit prices charged by power providers "until we
have a record supporting such action," he said, referring to the results of
the pending staff investigation.
	Further, he said, the law bars FERC from ordering retroactive refunds to San
Diego Gas & Electric Co. for the power it purchased this summer to serve its
retail customer base.
	Hoecker testified before the House Commerce Committee's Energy and Power
Subcommittee, which is looking into the supply shortages in California this
summer that have forced San Diego electricity consumers to pay twice as much
for power as they did a year ago.
	State Mkt Structure Blamed For Crisis
	The hearing comes after much wrangling at FERC, as SDG&E, a unit of Sempra
Energy (SRE, news, msgs), sought an order setting price caps for power bid
into the state-sponsored electricity exchange, and power producers sought an
order allowing cost recovery for lost opportunity sales if the state's
independent grid operator curtailed sales outside California, where price
controls don't apply.
	FERC hasn't yet responded to the producers, and deferred action on SDG&E's
bid for price controls until the staff investigation is completed. But it
left in place an order allowing the independent system operator to limit the
price it pays for power, which acts as a de facto cap on prices bid into the
power exchange.
	Hoecker, while withholding judgment pending the staff probe, appeared to
place much of the blame for this summer's crisis with the state-mandated
market structure, which left San Diego consumers subject to spot-market
volatility.
	And he appeared to suggest that FERC's order directing utilities to transfer
transmission assets to control of large regional transmission organizations,
or RTOs, will offer an opportunity to develop a regional solution to the
power-supply problem.
	FERC deferred to California in restructuring the wholesale market in
California because its experience with new market institutions such as power
exchanges and ISOs was limited, Hoecker said.
	Other states, such as Pennsylvania, were "less prescriptive than California
in telling the commission how their wholesale markets should operate,"
Hoecker noted.
	Now, with FERC's Order 2000 encouraging formation of RTOs, "the commission is
in a very different posture with respect to the structure of wholesale
markets," he said.
	"Large regional markets can be made to work effectively," Hoecker told the
lawmakers, citing the Pennsylvania restructuring as an example.
	Other witnesses were more forceful in criticizing the state-mandated market
structure.
	By requiring the state's three investor-owned utilities to purchase all their
electricity from the power exchange and limiting their ability to hedge price
risks by entering into long-term fixed-price contracts, the state left
consumers subject to volatility in the state-mandated spot market, said
officials with Enron Corp. (ENE, news, msgs) and Reliant Energy (REI, news,
msgs).
	California's market structure "placed no economic incentives on the default
utility providers to look out for the costs that are ultimately passed on to
their consumers," Reliant's John Stout testified.
	"San Diego's experience offers the Congress an unparalleled opportunity to
learn from a bungled attempt at deregulation," said Michael Shames, executive
director of Utility Consumer's Action Network.
	Shames and other witnesses warned the congressional committee that
California's electricity crisis is likely to occur in other regions of the
country unless steps are taken to free up interstate trade in power and allow
FERC to better police markets.
	"California is just the latest problem area in U.S. power markets and, unless
policymakers act quickly, it will not be the last," said Enron Corp. (ENE,
news, msgs) Steven Kean executive vice president.
	"Unless Congress and FERC are willing to address the interstate issues that
are beyond the jurisdiction of state legislators and regulators, I predict
that our experience in San Diego is indicative of what others will encounter
in trying to create a competitive electricity market," said Edwin Guiles,
Sempra's president of regulated operations.
	"This electricity crisis is not a California-only problem," said Rep. Brian
Bilbray, R-Calif., who represents San Diego and requested Monday's hearing.
	"We will continue to be in this mess if state and federal officials don't
work together to find long-term solutions to the flaws in the marketplace,"
Bilbray said.
	-By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com
	Quote for referenced ticker symbols: EIX, ENE, PCG, REI, SRE

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


Dear i2 customers and partners,

If you wanted to attend our webcast but couldn't login at the proposed time
on June 6, you have now the ability to watch it in a replay mode.

To do so, just go to: http://www.iian.ibeam.com/events/i2tech/e060701/ ,
fill the registration form, submit it and click on the "Login" llink
located on the upper left corner of the screen, and you are ready to go (if
any problem occurs, please let me know).

As a reminder, the agenda of this webcast is attached below.

We had 425 registered attendees, and the overall feedback has been very
positive. We trust that you will share the same view after watching the
event.

Finally, I remind you that i2 is offering significant discounts for any
license of the e-learning "Intelligent SCM" course acquired before June 30,
so if you see value in this change management tool, now is the time to
further increase its ROI!

Best regards.

Marc Escande
Director, e-learning
i2 technologies
Phone: + 33 607 49 34 31

PS For your information, here is the link to a press release published
yesterday, which describes the value that On Semiconductor (formerly
Motorola Semi) has obtained by deploying the "Intelligent SCM" course to
support their worldwide master planning and demand fulfillment optimization
program. It is a perfect illustration of the themes discussed during the
webcast.

http://biz.yahoo.com/bw/010606/0332.html

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+++++++++++++++++++++++++++++++++++++++++++++++++++++++

i2 webcast on

"Accelerating SCM Transformation through E-Learning."

featuring:

Sanjiv Sidhu, i2's Chairman

-> The challenges to value creation and how to overcome them through
education.

JB Hoyt, Director at Whirlpool

-> Use of the i2 e-learning "Intelligent SCM" course to overcome people
and process transformation challenges in a global SCM optimization
program.

Marc Escande, i2's Director of E-Learning

-> E-Learning as a change management tool in SCM transformation
projects: lessons learned

Hiten Varia, i2's Chief Delivery Officer

-> Closing remarks

Q&A session

Total time: 35 minutes


CALENDAR ENTRY:	INVITATION

Description:
	Do Not Delete - Repeat parent for Vacation

Date:		11/17/2000
Time:		7:00 AM - 7:00 AM (Central Standard Time)
Tentative

Meeting Dates:
	11/17/2000, 11/18/2000, 11/19/2000, 11/20/2000, 11/21/2000, 11/22/2000

Detailed Description:


Operations has approved the facilities at the NGPL/Eddy TW receipt point for gas flow immediately.  Until mods are made on an NGPL mainline compressor we are to expect IT noms only.  It may be several days before we should expect to see firm noms through this point.  Please call me with any questions.  Thanks for everyone's help in this and forward the message to those who need this info.

Lorraine


See attachment


pls print.  thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 03/29/2001
07:54 AM ---------------------------
From: Shelley Corman/ENRON@enronXgate on 03/28/2001 04:41 PM
To: Frazier King/ENRON@enronXgate, Maria Pavlou/ENRON@enronXgate, Drew
Fossum/ET&S/Enron@ENRON, Dari Dornan/ET&S/Enron@ENRON
cc:

Subject: FW: Revised Section III C & D

 -----Original Message-----
From:  "Monica Douglas" <MRD@vnf.com>@ENRON
[mailto:IMCEANOTES-+22Monica+20Douglas+22+20+3CMRD+40vnf+2Ecom+3E+40ENRON@ENRO
N.com]
Sent: Wednesday, March 28, 2001 10:30 AM
To: rnuschler@akingump.com; rmfmckinne@aol.com; mark.cook@coastalcorp.com;
AlexanderL@dsmo.com; Shelley_Corman@enron.com; hendricksond@epenergy.com;
fkelly@gbmdc.com; cdavis@glgt.com; mike.mcmahon@gulfsouthpl.com;
jdreskin@INGAA.org; Pludwig@INGAA.org; kbdriver@jonesday.com;
Paul_Mallory@kindermorgan.com; dgetchell@mcguirewoods.com;
jblasiak@mcguirewoods.com; jschwitzer@mcguirewoods.com;
carl.fink@neg.pge.com; marsha.palazzi@neg.pge.com; clevander@nisource.com;
kkrieger@nisource.com; jschaefgen@thelenreid.com; coharra@velaw.com;
hmay@velaw.com; jjohnson@velaw.com; John Burnes; Paul Korman; Susan Moore;
tiggka@wbip.com; jneason@wcp.twc.com; scott.c.turkington@williams.com
Subject: Revised Section III C & D

Attached is the latest revised Sections III C & D from Ken Driver based on
comments he has already received.

Monica R. Douglas
Legal Assistant
Van Ness Feldman, P.C.
1050 Thomas Jefferson St., N.W.
Washington, D.C.  20007
(202) 298-1862

 - VANDOC_99307_1.DOC


Nothing since that report.  There was a proposal earlier last year that we
should look into this again but Harry Arora then said that this was not going
to proceed through London and so we never proceeded with an up-date.

Kind regards

Mark

From: Sara Shackleton on 16/05/2000 08:10 CDT
To: Mark Elliott/LON/ECT@ECT
cc:

Subject: Derivatives trading in India

Mark:  I've been asked whether ENA can enter into derivatives with an Indian
company.  Do you have research regarding legality/enforceability since the
1997 global review which ENA conducted through Allen & Overy?  Thanks.  Sara


Thanks for your nice note.  I certainly follow your career with interest.

I have been meaning to call to tell you how much we enjoyed getting the
wedding picture with your Christmas card.  What a great picture - you look
beautiful and happy.  Meagan and Amanda particularly enjoyed seeing it.  My
best laid plans for Christmas cards became a limited vision this year - only
managed to get them in the mail to people outside of Houston.  Maybe next
year...

I am in your old stomping grounds this week -- London.  I will see Mo
tomorrow night for dinner and to catch up on her life.

See you next week!  --Sally


SUBLIME

JOHN SPARAGANA

20 APRILd26 MAY 2001

John Sparagana will be in the gallery from 11am-2pm this Saturday, May 26th.

Please join us for conversation and refreshments. ?

The exhibition will close at the end of the day Saturday.

james gallery

307 sul ross | houston 77006 | 713.942.7035
http://www.jamesgalleryhouston.com

gallery hours: Wed-Sat 10-5:30


Further to our conversation please find attached the curves on the JM Huber transaction that we have agreed to work off of. The 30,000/day of capacity will sit on the books until next week but the deal with HUBER is effectively completed. In the event that this deal does not close, then the West desk will resume with the same MTM risks that you presently have.

Any curve shift positive from now until the transaction is actually unwound will be credited back to the orig desk and any negative curve shift from here on in will be credited to the trading desk... plus ENA Orig and trading will work on a sharing calculation payable for any future deals.

In addition to the transportation income being generated, additional orig will be generated by entering into wellhead and market based transactions with the desks. I believe that all of the risks and discussions associated with the structures have been well communicated with each book ( by Mark Whitt ) and we will be meeting with each of you early next week to get the structures and booking set up properly.

I trust that this note covers the general areas related to this deal and I am very pleased with the high level of cooperation shown by everyone..

Pls review file and if there are any questions give me a call.

BT


F.Y.I.

-----Original Message-----
From: webmaster@cera.com [mailto:webmaster@cera.com]
Sent: Friday, September 28, 2001 9:06 PM
To: clients@cera.com
Subject: Western Energy--Power and Gas Prices and Volatility Expected to
Fall - CERA Monthly Briefing

Title: Demand, Prices to Follow Trajectory of the Economy
URL(s):

http://www20.cera.com/eprofile?u=35&m=2702;

***********************************************************************

WESTERN ENERGY--POWER AND GAS PRICES AND VOLATILITY EXPECTED TO FALL

CERA expects a weaker US economy to be one of the outcomes of the tragic events
on September 11, 2001, which will further reduce the demand for gas and power.
Spot prices for natural gas and power already reflect this expectation, and
CERA's outlook anticipates continued price weakness.

*  As new supplies continue to arrive over the next year, even as demand
weakens, the West will have more than adequate supplies of gas and power.

*  This surplus supply situation will put additional downward pressure on
prices.

*  The shift from supply tightness to the recent plunge in prices can be traced
principally to the rapid decline in demand for both gas and power this year,
while supplies grew.

**end**

Follow above URL for complete report (9 printed pages).

E-mail Category: Monthly Briefing
CERA Knowledge Area(s): Western Energy

***********************************************************************

***********************************************************************
CERA's Autumn 2001 Roundtable event dates and agendas
are now available at http://www20.cera.com/event
***********************************************************************

To make changes to your cera.com profile go to:
http://www20.cera.com/client/updateaccount

Forgot your username and password? Go to:
http://www20.cera.com/client/forgot

This electronic message and attachments, if any, contain information
from Cambridge Energy Research Associates, Inc. (CERA) which is
confidential and may be privileged. Unauthorized disclosure, copying,
distribution or use of the contents of this message or any attachments,
in whole or in part, is strictly prohibited.
Terms of Use: http://www20.cera.com/tos
Questions/Comments: webmaster@cera.com
Copyright 2001. Cambridge Energy Research Associates


i don't want to leave!  merle haggard is coming to gruene oct. 25th!  i'm
prob going to have to batte some fundamentalist freak w/ one arm on the
plane tomorrow!  so depressed- and schitzophrenic!  i'm not done being an
ex-pat! no fair!
e

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp


Please give me a call and we can discuss.  Shari is now definately moving to
power trading (not public yet) so we really need to figure out how we are
going to cover all the bases - short and long term.  I will be out the 14th
through the 17th and plan to be in S.A. the last week in March.  It would be
grea if we could both be there for the second seminar (looks like the more
pertinent to our issues) but I hate to think of Carol left all by herself
that much.  Let's see what we can figure out to make sure everything is
covered.

Sara Shackleton
03/01/2000 07:43 AM
To: Mark Taylor/HOU/ECT@ECT
cc: Kaye Ellis/HOU/ECT@ECT
Subject: Trip to Brazil

Mark:  I have been in touch with Sami Arap who is now Andrea Bertone's boss.
There are currently two seminars scheduled in Sao Paulo aimed for the
commercial group and the lawyers as follows:

1.  March 17 - Milbank Tweed  (Securitization)
2.  March 27 - Bracewell (legal issues for contracts)

I think I should attend these and was considering a trip to arrive before the
start and after the termination of the seminars (approx March 15 - March
28).  In the interim I could (hopefully) wrap up financial issues with
Tozzini and address at length physical issues with Tozzini.  Also, I can
speak with commercial groups and plan a "swap"seminar for the commercial and
legal groups (date TBD but probably after the legal seminar in San Antonio).
Please let me know if the timing works for our group in Houston and if you
have other thoughts.   Hope all is well.  Sara


---------------------- Forwarded by Jonathan Hoff/HOU/ECT on 10/05/2000 10:46
AM ---------------------------

"Modi, Rishi" <rishi.modi@csfb.com> on 10/05/2000 03:09:34 AM
To: "'jonathan.hoff@enron.com'" <jonathan.hoff@enron.com>
cc: "'don.miller@enron.com'" <don.miller@enron.com>, "Al-Farisi, Omar"
<omar.al-farisi@csfb.com>, "Heckler, James" <james.heckler@csfb.com>
Subject: Data Room and Site Visit Procedures

Jonathan-

Attached for your review is the updated data room and site visit procedures
document.  We have a few questions that I would like to discuss with you
tomorrow morning if you are available.  Thanks.

 Best Regards,

 Rishi Modi
> 212-325-9130  (phone)
> 212-325-8047  (fax)
 rishi.modi@csfb.com

> CREDIT | FIRST
> SUISSE | BOSTON
> Global Energy &
>         Project Finance Group

 <<Data Room.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.

 - Data Room.doc


__________________________________
NEW FEATURES
from The Wall Street Journal

Dear Subscriber:

I am pleased to invite you to a sneak preview of our redesigned and
enhanced edition of The Wall Street Journal Online, with superior site
organization, easier-to-use features and better performance for faster
results. You can get an early look at:
http://wsj.com/tour

Rest assured, all the up-to-the-minute, exclusive Journal news and
information you rely on remains center stage. We're simply unveiling
the next-generation Online Journal, which offers NEW FEATURES FROM US -
and DRAMATIC NEW BENEFITS FOR YOU.

You'll find this state-of-the-art site includes many of the enhancements
you've been asking for, including your own PERSONALIZED HOME PAGE that
gives you control of the information that matters most to you while
still providing a concise picture of the top news from the Journal
newsroom. You'll also find an incredibly effective site organization
that makes finding what you want not just easy but effortless.

Specifically, the new Online Journal includes:

==New Organization==
We've reorganized the site to better meet your needs, with all-new main
sections and additions such as News by Industry. You'll also find more
related links on article pages, improved site navigation and pages that
surface more information yet require less scrolling.

==More Personalization==
Here's where the new Online Journal really shines. Create your own
customized home page, with one-click access to the topics you're
interested in. Put your favorite portfolio, company news, industries,
market data and more right on your home page so you'll always have a
completely up-to-date view of the information that matters most to you.
To be ready for the change please be sure and update your current
Personal Journal listings today.

==Better Searching==
We've added our search options to every page, making it simple for you
to expand your knowledge and tap into our improved search results. We've
also revamped our Quotes & Research area, giving you access to detailed
financial information on more than 30,000 companies and funds.

==More Convenience==
You'll be able to conduct tasks such as e-mailing, saving and printing
properly formatted articles on demand.

This new edition of the Online Journal is the result of months of
in-depth interviews with our subscribers and exhaustive research and
testing, as well as comments from subscribers over the past six years.
I believe you'll find the Online Journal truly comes of age with the
introduction of these new benefits. I hope you'll take a moment to
preview the site even before it rolls out in late January. Our advance
tour is available at:
http://wsj.com/tour

Sincerely,

Neil F. Budde
Publisher, The Wall Street Journal Online
nbudde@wsj.com

__________________________________
ABOUT THIS E-MAIL

When you registered with The Wall Street Journal Online, you indicated you
wished to receive this New Features Alert e-mail. From time to time, we will
also send you e-mail announcements on new features and special offers from
other Dow Jones products and services.

IF YOU ARE A CURRENT SUBSCRIBER, you can remove yourself from this list by
visiting this URL:
http://interactive.wsj.com/user-cgi-bin/searchUser.pl?action=emailalert

Uncheck the appropriate box at the bottom of the page to unsubscribe from
this list. Click on the "save selections" button.

For further questions, please call our customer service department at
1-800-369-2834 or 1-609-514-0870 between 7 a.m. and midnight ET Monday-Friday or
e-mail feedback@interactive.wsj.com.

IF YOU ARE NOT A CURRENT SUBSCRIBER, you can remove yourself by e-mailing
feedback@interactive.wsj.com or calling our customer service department at
1-800-369-2834 or 1-609-514-0870 between 7 a.m. and midnight ET Monday-Friday.

Please read our Privacy Policy at:
http://interactive.wsj.com/public/resources/documents/privacy.html
__________________________________
Copyright 2002 Dow Jones & Company, Inc. All Rights Reserved.


<<67260f3[1].jpg>>  <<67260f7[1].jpg>>  <<67260f4[1].jpg>>

 - 67260f3[1].jpg
 - 67260f7[1].jpg
 - 67260f4[1].jpg


Here is my suggested response:
Enron's policy is to not comment on current litigation.  With respect to severance, if an Enron employee is let go prior to the merger, and is eligible for benefits under the Enron Corp. Severance Plan, then the terms of that plan will govern.  No changes to the severance plan have been made at this time.  In general, however, any severance waiver signed will include a release of claims for any and all conduct that has occurred to date.  Post merger, employees will be eligible for benefits under whatever severance plan the merged company adopts, including with respect to waiver requirements.

--Lizzette

 -----Original Message-----
From: 	Brown, Cole
Sent:	Tuesday, November 27, 2001 12:11 PM
To:	Palmer, Lizzette
Cc:	Johnson, Rick
Subject:	FW: A Question

Lizzette, can you help us draft an answer to these questions?  Thanks, Cole.
 -----Original Message-----
From: 	James, Terrie
Sent:	Tuesday, November 27, 2001 12:09 PM
To:	Brown, Cole; Johnson, Rick
Subject:	A Question

Rick or Cole,

PR received the following question.  We'd like to have an answer prepared, but don't plan to post it or include it in any of the Q&A that will accompany scripts.  (You may want to include it in an HR Q&A or post to LiveLink.)

Q.  If I am a party to a 401K class action suite against Enron, how will that affect my severance if I am involuntarily terminated?

Related Q.  If I am involuntarily terminated and required to sign a waiver as part of the severance package, can I participate in an employee or shareholder class action suite against Enron.


SBX 43 (Alpert) which extends the rate freeze to SDG&E customers over
100kw was concurred on the Senate Floor and now heads to the Governor
for his signature.


I am planning on taking vacation 5/11 and 5/14.  Attached you will find a
copy of the Deal Validation desk procedures that will help you out with the
Deal Validation process.  It would be to your benefit if you took some time
next week to sit with me for a couple of days in the morning before I go on
vacation so that we can go over any questions or concerns you may have.
Please take time to read these desk procedures before next week as it will
help you better understand the Deal Validation process when you sit with me.