For your information.

Laura

 -----Original Message-----
From: 	Penman, Gregg
Sent:	Friday, September 14, 2001 9:56 AM
To:	Tomaski, Richard; Simpson, James; Fascetti, Lee; Rodrigue, Robin; Pikofsky, Lynn; Kimbrough, Jona
Cc:	Luce, Laura
Subject:	enovate audit

As most of you are aware, People's internal audit team, with assistance from an audit consultant specializing in trading operations, has been conducting an audit of enovate business processes, reporting, and general operations.  The audit has been concluded with the issuance of a formal report to People's senior management as well as a PERC/enovate response to their review.  Overall, People's audit team found enovate to be a very well managed operation with proper controls, appropriate separation of duties and adequate reporting. As noted in their report, "...the enovate team has done an outstanding job of creating a well-organized and profitable business.  We found that enovate's and Enron's staffs were extremely helpful, knowledgeable and willing to assist us during the course of the audit."  Furthermore, "The audit found that the general management of enovate's business processes was very good, and exceeded that of many entities that had been in business for several years.  Our review of enovate found the trading activity to be well monitored with adequate segregation of duties between the trading, management and support functions."

Everyone deserves credit and should take pride in the overall findings of the audit, particularly given the complexity of enovate and our sometimes limited resources.  Also, thank you for your patience and accommodations of the audit team throughout the process.

However, like all audits there are certain items which need to be addressed, clarified or improved.  We have set a timeline to address each one of the findings and provide an appropriate response to the audit team.  As such, a few of you will be requested to provide additional assistance in the near future.  I will be contacting those individuals separately to discuss the necessary follow up.

Thanks - Gregg


I wasn't able to execute the link you had attached on your recent email
regarding a survey.  Would you please provide another method of accessing the
survey?

RB
____________________________________________________
Rene Bisono   -    Global Network Development
Enron Broadband Services
(713) 853.9900 [desk]     (713) 408.6841 [mobile]     (520) 438.8766 [Efax]
rene_bisono@enron.net
http://www.enron.net


August 18, 2000

     Teco Tap       20.000 / Enron ; 114.167 / HPL IFERC

     LS HPL LSK IC       20.000 / Enron

August 19, 2000

     Teco Tap       20.000 / Enron ; 96.667 / HPL IFERC

     LS HPL LSK IC       20.000 / Enron

August 20, 2000

     Teco Tap       20.000 / Enron ; 102.500 / HPL IFERC

     LS HPL LSK IC       20.000 / Enron


Please print for me and put in my Japan file - please give me the file!
Thanks.

Michelle

----- Forwarded by Michelle Cash/HOU/ECT on 06/09/2000 04:04 PM -----

	Scott Gilchrist@ENRON_DEVELOPMENT
	06/07/2000 01:23 PM

		 To: Michelle Cash@ECT
		 cc:
		 Subject: New fax received (Likely sender: 0354498794).

As discussed
---------------------- Forwarded by Scott Gilchrist/ENRON_DEVELOPMENT on
06/07/2000 01:22 PM ---------------------------

Nigel Sellens@ECT
06/07/2000 06:29 AM
To: Scott Gilchrist/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Melissa Laing/LON/ECT@ECT

Subject: New fax received (Likely sender: 0354498794).

Here is the contract template, I will call you later with my comments.
---------------------- Forwarded by Nigel Sellens/LON/ECT on 07/06/2000 12:30
---------------------------

London Fax System
07/06/2000 10:06
To: Nigel Sellens/LON/ECT@ECT
cc:

Subject: New fax received (Likely sender: 0354498794).

You have received a new fax from 0354498794

The image contains 16 page(s).


<title>Thanks</title>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">

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i leave for denver on thurs.


Please respond to All-
There will be a meeting tomorrow at 10:00 am in Capitol Room 317 to go over
our workproduct with Rick and folks from the Senate. Please reply and let me
know if you can be there. Let me know if there are any questions.

Many thanks,
Delaney


Can you tell us on those where we avg what their mark is? Quickly?

 -----Original Message-----
From: 	Kitchen, Louise
Sent:	Thursday, November 01, 2001 9:18 PM
To:	Brackett, Debbie R.
Cc:	Bradford, William S.
Subject:	RE: Margin Disputes

What does margin based on average of MTM?  If we have agreed an average mark - what is their number?  Are these just the counterparties we margin/have a collateral threshold with?
Thanks

Louise
 -----Original Message-----
From: 	Brackett, Debbie R.
Sent:	Thursday, November 01, 2001 7:08 PM
To:	Kitchen, Louise
Cc:	Bradford, William S.
Subject:	Margin Disputes
Importance:	High

Louise,

We highlighted the counterparties that we are currently working to reconcile margin amounts.  Other counterparties are listed for whom we might have differences, however in normal business practice we have established a mutual agreement on how to manage their account.  We will be in early in the morning, call us if you have any questions.

Debbie and the "Onicas"

 << File: $List 110101.xls >>


----- Forwarded by Tana Jones/HOU/ECT on 11/30/2000 04:48 PM -----

	Bradley Diebner
	11/30/2000 04:44 PM

		 To: Karen Lambert/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT, Samuel
Schott/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Debbie
R Brackett/HOU/ECT@ECT, David Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT,
Cynthia Clark/Corp/Enron@ENRON, Mary G Gosnell/HOU/ECT@ECT, Enron Europe
Global Contracts and Facilities, Enron Europe Global CounterParty, Stephanie
Sever/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Stacey
Richardson/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON,
Claudia Clark/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Lisa
Lees/HOU/ECT@ECT, Juana Fayett/Corp/Enron@Enron, Jana Morse/Corp/Enron@Enron,
Trang Le/HOU/ECT@ECT, Paul Maley/LON/ECT@ECT, Sonya Clarke/LON/ECT@ECT, Lee
Munden/LON/ECT@ECT, Tim Davies/LON/ECT@ECT, Karen O'Day/NA/Enron@Enron, Taffy
Milligan/HOU/ECT@ECT, Tanya Rohauer/HOU/ECT@ECT
		 cc:
		 Subject: EOL Credit Responses 11/30/00

Regards,
bd


Bob,

We have updated our EBS Master Agreement, so made some conforming changes to the EOL (with Credit) and EOL (without Credit) GTCs.  Please find them attached.  I have also revised the product descriptions that I have to make sure that the language was consistent (although I was given a number of versions to work from).  Let me know if you have questions about any of these changes or if you have any questions about additional changes to EBS info on EOL that may be required.  All the Best!

Cynthia


what do you mean, house guests from la jolla?

	Nancy Sellers <Nancy.Sellers@RobertMondavi.com>
	05/10/2001 10:25 AM

		 To: "'Jeff Dasovich'" <Jeff_Dasovich@enron.com>, "Prentice @ Berkeley"
<PSellers@haas.berkeley.edu>, Prentice Sellers <PSellers@pacbell.net>
		 cc:
		 Subject: A little change in plans

we are going to have house guests from La Jolla on Sunday, so I don't think
that golf would be appropriate - but you guys can still play without us.
Let me know before I cancel the tee time.

Nancy
(707) 251-4870 (phone)
(707) 265-5446 (fax)
"Plus je bois, mieux je chante"


Gerald,
I have reviewed these agreements and there is no language that would indicate that Oakhill would be liable for any obligations in the event of their default. Please let me know your thoughts.

Russell

 -----Original Message-----
From: 	Nemec, Gerald
Sent:	Monday, June 25, 2001 11:01 AM
To:	Diamond, Russell; Sherman, Cris
Cc:	Knippa, Mark
Subject:	FW: Enron/Hanover

More info on use of GE's form for our lease with Hanover in the Oakhill deal.

 -----Original Message-----
From: 	Knippa, Mark
Sent:	Monday, June 25, 2001 8:33 AM
To:	Nemec, Gerald
Subject:	FW: Enron/Hanover

Gerald,
Dave Gutierrez with Hanover provided the following response regarding the documents he forwarded to me regarding the GE Capital (Operating Lease).
I believe that I get the picture,  but it seems that he would have made the changes he has referenced.

Lets discuss,
mk

 -----Original Message-----
From: 	"Dave Gutierrez" <dgutierrez@hanover-co.com>@ENRON [mailto:IMCEANOTES-+22Dave+20Gutierrez+22+20+3Cdgutierrez+40hanover-co+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Monday, June 25, 2001 8:06 AM
To:	Knippa, Mark
Cc:	Hilgert, Chris; jgill@hanover_co.com
Subject:	RE: Enron/Hanover

Mark,

The agreements you received are to cover the operating lease with the purchase option quoted for this transaction. Hanover will issue the contract whereby Hanover Compression Limited Partnership will be reflected as the Lessor and ECS will be the Lessee. Hanover will then assign the contract to GE whereby all monthly payments will be remitted to GE. Hanover will enter into a separate agreement to cover the maintenance and service portion of this transaction, of which Hanover shall invoice.

The documents forwarded to you are the actual documents you'll be require to execute however they will reflect Hanover as Lessor. Additionally, Hanover maintains all warranty obligations extended against the package regardless of the assignment to GE.

Please review the documents and advise of any exceptions or issues. Keep in mind that these documents are specifically for the monthly operating lease installments and that most of the language is required to comply with the FASB Accounting regs. which keep this transaction as an operating lease/off balance sheet transaction. This is a standard agreement we utilize with other companies seeking operating leases with purchase options while maintaining an off balance sheet transaction.

I'd be glad to visit with you or anyone from your office if necessary to clarify any questions or concerns.

>>> "Knippa, Mark" <Mark.Knippa@ENRON.com> 06/22/01 03:52PM >>>

Not sure I get the picture.  ECS is expecting to have an Operating Lease with Hanover that accommodates the new compressor station (equipment, packaging & installation).  ECS is also expecting to enter into a Maintenance Services Agreement with Hanover that covers the provided equipment and installation, bumper to bumper, for the 10 year term of the agreement.

What has been provided is blank documentation from GE Capital that requires maintenance services, delivery, use & operation, insurance, the return of equipment, etc. that does not fit the parameters of our discussions with Hanover.  Is ECS
expected to execute the agreements with GE Capital or with Hanover?  Is the Hanover Agreement expected to mirror this agreement 	less the services that Hanover is being hired to perform?

	?
	mk

>  -----Original Message-----
> From: 	"Stam, John (CAP, CEF)" <John.Stam@gecapital.com>@ENRON
> [mailto:IMCEANOTES-+22Stam+2C+20John+20+28CAP+2C+20CEF+29+22+20+3CJohn
> +2EStam+40gecapital+2Ecom+3E+40ENRON@ENRON.com]
> Sent:	Friday, June 22, 2001 1:41 PM
> To:	Knippa, Mark
> Cc:	'jgill@hanover_co.com'; 'dgutierrez@hanover-co.com'
> Subject:	FW: Enron/Hanover
>
> Mark,
>
> Per Dave Gutierrez's request, I am forwarding to you our Master Lease
> Agreement and documents for a synthetic lease structure as an
> operating
> lease.
> Please let me or Dave know if you have questions or comments about any
> of
> these documents below.
> Best Regards,
> John Stam
>
> e       			GE Capital
> __________________________________________
> John W. Stam
> Commercial Equipment Financing
> 5400 LBJ Freeway, Suite # 1280
> Dallas, TX  75240
>
> * Mail to: john.stam@gecapital.com
>  *  Office:  (972) 419-3211
> *     Fax:   (972) 387-4439
>
>
> > -----Original Message-----
> > From:	Anderson, William S (CAP, CEF)
> > Sent:	Friday, June 22, 2001 1:01 PM
> > To:	Stam, John (CAP, CEF)
> > Subject:	Enron/Hanover
> >
> >  <<retprov.DOC>>  <<Proptax.DOC>>  <<QMLA.doc>>  <<synth-lse.DOC>>
> >
> > William S. Anderson
> > Vice President/Risk Analyst
> > Commercial Equipment Financing
> > General Electric Capital Corporation
> > Phone:	(972) 419-3220
> > Fax:	(972) 419-3296
> > william.anderson@gecapital.com
> >
>
>  - retprov.DOC << File: retprov.DOC >>
>  - Proptax.DOC << File: Proptax.DOC >>
>  - QMLA.doc << File: QMLA.doc >>
>  - synth-lse.DOC << File: synth-lse.DOC >>


I can't believe that I said what I did this morning.  It was selfish and I
sincerely appologize.  I don't know what I was thinking or why.  Well,  I
just listened to your message and I deserve all of it.  Even though you may
not believe it.  I do love you, but many times cannot justify my actions.  I
love you very much, and will call you later.

D


Wednesday, April 25 at 10 a.m. Houston time, join Sherri Sera, executive
assistant to Jeff Skilling, on eSpeak.  Sherri will answer questions about
how her job has changed since Jeff became CEO.

If you can't make the live event, post your questions on eSpeak now.  Sherri
will answer them during her eSpeak, and you can find the answers in the
transcript later.

Have you been wondering what happened to the information about Enron's
severance pay policy?   Would you like to see an innovation suggestion for
the Saturn's ring that will connect the two Enron buildings?  Read the new
postings in the "Office of the Chairman" category in eMeet.

Thanks for the great response to the new "Cost Reduction" category in the
Idea Vault!  Visit the ThinkBank today and read the suggestions for cutting
costs; and, while you're there, add your own.


Associate and Analyst Programs (the &Programs8) are administered globally.
Listed below is the contact information for the offices that utilize the
Programs.  Please do not hesitate to contact the individuals identified with
any questions, placement needs or hiring needs.

Houston/Portland/Australia

Celeste Roberts, Program Director.  Manages the daily operations.  Her
assistant is Dolores Muzzy and can be reached at ext. 3-6245.

Ginger Gamble.  Overall responsibility for Associate recruiting.  Candidates
interested in the Associate Program can forward their inquiries and resumes
to Ginger at EB1191.  Ginger can also be reached at ext. 3-7583 or by e-mail
at Ginger.B.Gamble@enron.com.

Shelly Jones.  Overall responsibility for Analyst recruiting.  Candidates
interested in the Analyst Program can forward their inquiries and resumes to
Shelly at EB1175.  Shelly can also be reached at ext. 3-0943 or by e-mail at
Shelly.Jones@enron.com.

Jana Giovannini.  Responsible for operations and expenses.  Jana can be
reached at ext. 3-9233 or by e-mail at Jana.Giovannini@enron.com.  Jana is
located at EB1187.

Shannon Rodgers.  Responsible for Associate rotations.  Associates and hiring
managers who need information on rotations and Associate availability should
contact Shannon at extension 3-3853 or by e-mail at Shannon.Rodgers@enron.com
.  Shannon is located at EB1186A.

Elizabeth Boudreaux.  Responsible for Analyst rotations.  Analysts and hiring
managers who need information on rotations and Analyst availability should
contact Elizabeth at ext. 3-6176 or by e-mail at
Elizabeth.Boudreaux@enron.com.  Elizabeth is located at EB1186B.

Argentina/Bolivia/Brazil

Miguel Padron.   Responsible for Associate and Analyst rotations, operations
and expenses.  His assistant is Rosely Nassar and can be reached at 5503-1243.

Disneau Santiago.  Responsible for Associate and Analyst recruitment.
Disneau,s assistant is Marlene Muniz and can be reached at 5503-1244.

Calgary

Dawn Doucet.  Responsible for Associate and Analyst recruiting and rotations.
Candidates interested in either the Associate or Analyst Programs can forward
their inquiries and resumes to Dawn in the Calgary office.  Dawn can be
reached at (403) 974-6724, the fax number is (403) 974-6985 or by e-mail at
Dawn.Doucet@enron.com.

London

Elizabeth  Barrett, Director of European Program.  She can be reached at +44
20 7783 7701.

Sophie Kingsley.  Responsible for day to day management of the European
Program, both pre/post hire, including Associate and Analyst rotations and
international transfers.  Sophie can be reached at +44 20 7783 7975 or by
e-mail at skingsley@enron.com.

India

Ranen Sengupta and Dick Liebert.  Responsible for Associate and Analyst
recruiting and rotations.  Candidates interested in either the Associate or
Analyst Programs can forward their inquiries and resumes to Ranen Sengupta or
Dick Liebert.  Ranen can be reached at ext. 6-7967 and his e-mail is
Ranen.Sengupta@enron.com.  Dick Leibert,s extension is 6-7145 and his e-mail
is Dick.Liebert@enron.com.


Susan is running a little late this morning and is expected to be in the office around 9:15 a.m.  Thanks.

Esmeralda Gonzalez
Enron North America Corp. - Legal
1400 Smith Street, EB3815
Houston, Texas 77002
E-mail: Esmeralda.Gonzalez@enron.com
Phone: 713.345.7621
Fax: 713.646.3393


I will not be attending

-----Original Message-----
From: Mehrer, Anna
Sent: Monday, September 17, 2001 12:26 PM
To: Alonso, Tom; Anderson, Bob; Anderson, John; Badeer, Robert; Belden, Tim; Bishop, Serena; Blair, Kit; Bryson, Jesse; Buerkle, Jim; Chang, Fran; Chen, Lei; Cocke Jr., Stanley; Cox, Chip; Crandall, Sean; Cutsforth, Diane; Dean, Craig; Deas, Patty; Donovan, Terry W.; Driscoll, Michael M.; Dunton, Heather; Emmert, Caroline; Erwin, Kenton; Fischer, Mark; Freeman, Scott; Frost, David; Gang, Lisa; Gilbert, Scotty; Gray, Stan; Guzman, Mark; Hall, Steve C. (Legal); Hammond, Debra; Harasin, Leaf; Kaufman, Paul; Lackey, Chris; Law, Samantha; Lee, Eugene; Linder, Eric; Mainzer, Elliot; Mallory, Chris; Malowney, John; Maxwell, Dan; Mays, Wayne; McCarrel, Steven; Merriss, Steven; Meyers, Bert; Motley, Matt; Platter, Phillip; Porter, David V.; Poston, David; Purcell, Mike; Rosman, Stewart; Runswick, Stacy; Sarnowski, Julie; Sheidun, Donna; Slinger, Ryan; Solberg, Geir; Stokley, Chris; Swain, Steve; Swerzbin, Mike; Thomas, Jake; Villeggiante, Theresa; Warner, Nicholas; Williams III, Bill
Subject: I have yet to hear from you!

Kindly select one of the voting buttons above to let me know whether or not you will be coming to the company picnic this Saturday.  If you are planning to attend, please select the appropriate button for the number of family members who will be accompanying you. If your family cannot attend, you may bring a guest.

Thank you!
Anna
x3834


-----Original Message-----
From:  Lundstrom, Bruce
Sent: Monday, June 18, 2001 1:06 PM
To: Derrick Jr., James; Walls Jr., Rob; Haedicke, Mark E.
Cc: Rogers, Rex
Subject: Dabhol -- A Brief Legal Update

Gentlemen -

A few updates:

The power station and LNG contractors terminated their respective
construction contracts over the weekend.

Rebecca McDonald and Ken Lay met with the India Minister of Finance on
Saturday in New York.  The Minister reiterated India's position that they
would not buy any power from Dabhol.

We had a conference call with management of GE and Bechtel last week.  There
is little evident disagreement amongst the sponsors on key issues.  Bechtel
even complimented Rebecca on her team and handling of the matter.  Walter
Stuart from V&E came over to listen in on the phone call on behalf of Enron.
Given the increasing cooperation of the sponsors and written statements of GE
and Bechtel approving Enron's handling of ongoing issues, we have kept V&E's
involvement fairly "low key" to date.

Bruce


Jinsung,

I have attached the requested information.

Respectfully Mitchell

	Enron North America Corp.

	From:  Jinsung Myung                           11/20/2000 08:23 AM

To: Benjamin Rogers/HOU/ECT@ECT
cc: Mitchell Hurt/Corp/Enron@Enron

Subject: Re: Brownsville Performance Data

Ben,

I attached table for Caledonia as well as Brownsville. Let's get the number
from Mitch.

Mitch: Could you please send attached file to Ben and myself?

Jinsung
(37330)

Benjamin Rogers@ECT
11/20/2000 08:18 AM
To: Jinsung Myung/Corp/Enron@Enron
cc:

Subject: Brownsville Performance Data

---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 11/20/2000
08:17 AM ---------------------------

	From:  Richard Broussard @ ENRON                           11/20/2000 08:00 AM

To: Mitchell Hurt/Corp/Enron@Enron
cc: Benjamin Rogers/HOU/ECT@ECT
Subject: Brownsville Performance Data

Mitch,

Please provide this information to Benjamin Rogers.   I am on vacation this
week and don't have access to the data.

Thanks,
Rick

---------------------- Forwarded by Richard Broussard/Corp/Enron on
11/20/2000 07:52 AM ---------------------------

Benjamin Rogers@ECT
11/19/2000 02:59 PM
To: Richard Broussard/Corp/Enron@Enron
cc:

Subject:

Rick:
Here is the file with the performance data we worked on for the 2000's.  A
Brownsville tab has been added - could you please assist us in putting this
data together for Brownsville.  Please give me a call if you have any
questions.  Thanks!
Ben


when can we meet today to discuss our written response to Citizens?

 -----Original Message-----
From: 	Grigsby, Mike
Sent:	Monday, November 19, 2001 12:07 PM
To:	Ward, Kim S (Houston); Gay, Randall L.
Cc:	Tycholiz, Barry; Sullivan, Patti; Groenewold, Shannon; Tholt, Jane M.
Subject:	RE: Griffith Sales

Let's not forget the fact that Citizens has cut Enron more during the life of the deal.  The only company walking away from a deal will be Enron.  We will set up a meeting to discuss fixing the problem.

Thanks,
Mike

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Monday, November 19, 2001 12:01 PM
To:	Grigsby, Mike; Gay, Randall L.
Cc:	Tycholiz, Barry; Sullivan, Patti; Groenewold, Shannon; Tholt, Jane M.
Subject:	FW: Griffith Sales

As I am not involved in the daily operations behind this deal, I will need your input in order to respond to this request.  As I have indicated, the frequency of cuts has caused tremedous concern and Citizens is considering walking away from this deal.  They need assurance that this gas is going to flow in order to continue.  Do we need to have a meeting?  And when can I expect a response from the desk?

Thanks,

Kim

 -----Original Message-----
From: 	"Breen, Sean" <SBreen@czn.com>@ENRON
Sent:	Monday, November 19, 2001 11:48 AM
To:	Foster, Chris H.; Ward, Kim S (Houston)
Subject:	Griffith Sales

As I have discussed with you, Citizens is concerned about the frequency of upstream supply issues that have resulted in the recent cuts in the deliveries to the Griffith power plant.  Based on the information I have received, the reasons for these cuts have not risen to the level of Force Majeure, which as you know is the only event that would excuse performance under our contract for firm delivery of gas.  Citizens therefore requests that Enron respond to Citizens in writing with a descriptions of the steps Enron is taking to insure that there is not a continuation of these contract performance issues into the future. Your prompt attention to this matter is appreciated.


---------------------- Forwarded by Robert Benson/Corp/Enron on 05/11/2001
12:32 PM ---------------------------

Chris Dorland@ECT
05/11/2001 12:14 PM
To: Robert Benson/Corp/Enron@ENRON
cc:

Subject: Why One Firm Thinks Enron Is Running Out of Gas

---------------------- Forwarded by Chris Dorland/HOU/ECT on 05/11/2001 12:14
PM ---------------------------

	Dan Dorland
	05/11/2001 07:50 AM

To: Paul Devries/TOR/ECT@ECT, Jan Wilson/TOR/ECT@ECT, Jeff Borg/TOR/ECT@ECT,
Dave Ellis/TOR/ECT@ECT, Garrett Tripp/TOR/ECT@ECT, Stephane
Brodeur/CAL/ECT@ECT, Chris Dorland/HOU/ECT@ECT, kdorland@flint-energy.com
cc:
Subject: Why One Firm Thinks Enron Is Running Out of Gas

http://www.thestreet.com/_yahoo/comment/detox/1422781.html

Why One Firm Thinks Enron Is Running Out of Gas
By Peter Eavis
Senior Columnist
Originally posted at 5:23 PM ET 5/9/01 on RealMoney.com

A small research boutique with a reputation for rigorous analysis is telling
clients to quickly dump Enron (ENE:NYSE - news), believing that the energy
trading giant's 2001 earnings will fall well short of Wall Street's
forecasts.
Cambridge, Mass.-based Off Wall Street, led by analyst Mark Roberts, thinks
Enron's 2001 earnings will fall 6 cents short of the consensus estimate of
$1.79. The firm also believes Enron stock should trade around $30, nearly 50%
below Wednesday's $59.20.
The firm's 26-page report, published May 6, highlights Enron's declining
profitability and increasing leverage and suggests that the company should
trade on the same sort of multiple as a trading firm like Goldman Sachs (GS
:NYSE - news), which has a 2001 price-to-earnings ratio about half of Enron's
33 times. OWS also alleges that Enron's earnings quality is poor and that key
parts of its financial statements are confusing and opaque.
Houston-based Enron didn't comment by publication time on elements of the
report that Detox sent the company. An energy analyst who is bullish on
Enron's outlook says the OWS report contains fundamental misunderstandings
about the energy market and Enron's business model, but he says the report
does include some ground-breaking and valid insights. (The analyst's firm
doesn't give stock recommendations.)
Economies of Scale
Why care what Off Wall Street writes, compared with, say, analysts at Merrill
Lynch (MER:NYSE - news)? For one, OWS has an excellent track record.
Particularly sweet was 2000, when the tech stocks it had bashed came crashing
down. It has also shown itself to be well ahead of the curve, recommending
that clients sell e-tailer priceline.com (PCLN:Nasdaq - news) in June 1999,
when faith in Internet stocks was at its blindest and their prices at their
most insane.

Pulling Back
Enron retreats after long rally

Enron, with its domination of a burgeoning energy market, annual revenue of
over $100 billion and impressive earnings growth, can hardly be ranked
alongside the likes of priceline. But OWS thinks Enron is set for a
precipitous drop nonetheless. Why?
OWS's main beef is that key profitability measures are in decline. Margins on
Enron's pretax operating earnings (which the company's earnings releases call
IBIT, or income before interest, taxes and other items) are falling. Total
IBIT of $795 million in the first quarter amounted to only 1.59% of the $50
billion in revenue for the period, compared with a 2.08% margin in the fourth
quarter and 4.75% in the year-earlier period. Revenue in the first quarter
was nearly quadrupled from the year-earlier period, yet IBIT rose only 27%.
This shrinkage is due to lower-margin trading income making up an
increasingly large share of Enron's revenue base.
OWS thus calculates that for the remainder of 2001 Enron needs to generate an
extra $2.1 billion in revenue for each additional penny it makes over its
2000 EPS of $1.47 to reach analysts' expectation of $1.79.
The energy analyst counters that OWS apparently hasn't grasped how Enron can
continue to increase earnings even when margins shrink. It does so simply by
increasing volumes as the energy market balloons in size. In other words,
margins may decline, but since revenues are so much higher, earnings still go
up. Illustrating this, first-quarter 2001 EPS of 49 cents was 23% ahead of
the year-ago figure, even though the IBIT margin shrank by 3.2 percentage
points. The analyst thinks Enron will make $1.82 per share in 2001.
Growing On You
In addition, the huge growth in the energy market that has so helped Enron is
likely to continue for several years, according to the analyst. He notes that
roughly 75% of the electricity available in the U.S. still isn't traded in a
market. "Eventually it will be part of a competitive environment, but it'll
take five to 10 years," says the analyst. And he believes the extreme
volatility in energy-related commodities that has also benefited Enron will
exist for longer than OWS projects.
Still, OWS's point on profitability is bolstered by other profit measures.
Return on capital (net income as a percentage of equity plus debt) was 6.6%
in 2000, down on 1999's 6.9% and well below the 2000 returns on capital at
Duke (DUK:NYSE - news) (11.8%), Dynegy (DYN:NYSE - news) (12.1%) and even
Goldman (8.9%).
Even Enron bulls will admit that its financials are hard to follow. For
example, it doesn't give a gross margin number for its wholesale services, or
trading, business, which accounts for 96% of revenue. But one area of the
company's financial statements registered with the Securities and Exchange
Commission that consistently bugs analysts is the part that describes Enron's
related party transactions, which are the deals it does with entities that
have some sort of link to the firm. In fact, one of the related entities that
Enron has traded with is headed by Enron's CFO, Andrew Fastow. The energy
analyst comments: "Why are they doing this? It's just inappropriate."
The reason for maintaining these hard-to-follow related party deals has been
a source of speculation. But OWS analysis shows how a sales of optical fiber
to a related party may have been used to goose earnings in the second quarter
of 2000. Estimated profits from the so-called dark fiber (optical cable
without the gear to send data over it) transaction allowed Enron to beat
analysts' second-earnings earnings estimate by 2 cents a share, rather than
missing by 2 cents.
How soon before Wall Street follows Off Wall Street on Enron?


Start Date: 1/17/02; HourAhead hour: 16;  HourAhead schedule download failed. Manual intervention required.


Set up with Judy Smith 36244 10/02/00 - jar
Also interviewing with Hannon, McMahon, McConnell . .


No intra-day changes for 9/29

Only BG&E (5 dth decrease) and NJN (2 dth decrease) change for 9/30

David


Please use the attached for the guarantees. Please prepare one for all eight
participants.

Thanks


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IssueAlert for  March 22, 2001

New York Obstacles Thwart Sithe Energies' Plans for New Power Plant

by Will McNamara
Director, Electric Industry Analysis

[News item from PR Newswire] Sithe Energies, Inc. announced that, in response
to issues raised by local residents, the company is reassessing its plans for
a power generating facility in Ramapo, New York. The alternative currently
under review is a smaller "peaking" facility, which would use no water for
generation and operate only during a time of peak electricity use and
emergencies to help ensure reliability of the region's electricity supply.
Originally slated as an 827-MW combined cycle facility fueled by natural gas,
the alternative plant is a 510-MW peaking unit also powered by natural gas.

Analysis: Sithe Energies' original plans for the Ramapo plant appear to have
been thwarted by concerns among local residents who opposed certain aspects
of the plant. Ramapo is located 30 miles north of New York City. Chief among
the concerns of local residents is that Ramapo plant was originally planned
to run all the time to meet demand, and as a result would use local water
resources for cooling purposes. In response to the concerns of residents,
Sithe is modifying plans for the plant and reducing its planned output.
Unfortunately, Sithe plans to move forward with a smaller peaking unit at the
very time when it has become increasingly clear that the state of New York
has some rather serious power supply concerns.

For background, it is important to note that Exelon Corp. owns nearly half of
Sithe Energies. In December 2000, Exelon acquired 49.9 percent of the stock
of Sithe. The remaining 50.1 percent of Sithe is owned by Vivendi (34
percent), Marubeni Corp. (15 percent) and Sithe Management (1 percent). The
acquisition marked the continuation of an aggressive generation expansion
plan on the part of Exelon.

Jim McGowan, Sithe senior vice president for development, referenced the role
that public opposition played when he spoke about the new plans for a peaking
unit in the area. "Sithe has a strong history of working closely with local
communities and inviting their input to ensure their major issues are
addressed," McGowan said. "We've listened carefully to [residents'] concerns
and are addressing them by considering a facility that is clean, less
visible, and uses no water for generation." McGowan further noted that the
new peaking plant will only operate a limited number of hours annually while
fulfilling the region's growing need for electricity during times of peak
consumer demand.

As an independent power producer, Sithe Energies owns power plants across the
United States and internationally. The company has a generation presence in
such states as California, Colorado, Massachusetts, New Jersey and
Pennsylvania (among several others). In New York, Sithe Energies owns four
rather small plants and one large plant that generate approximately 1,329 MW:
Batavia (58 MW), Independence Station (Scriba, N.Y., 1,042 MW), Massena (86
MW), Ogdensburg (83 MW), and Sterling (Sherill, N.Y., 60 MW). In addition to
the proposed peaking plant in Ramapo, Sithe Energies also has proposed
Heritage Station, an 800 MW power plant located near Lake Ontario. A full
siting review in New York normally takes a year to complete. However,
projects under 80 MW are not required to go through the extensive
environmental impact statement, which generally involves a detailed*and time
consuming*examination of alternatives.

The state of New York has not brought a new plant online since 1996, when a
200-MW plant opened in Brooklyn. It has been almost seven years since a 1,000
MW unit in Oswego, N.Y., marked the last plant to open upstate. Further, New
York expects only a 3.5-percent increase in new capacity in the next three to
four years. Consequently, concerns about the state's ability to meet
increasing demand for power have gained momentum, heightened by the ongoing
problems in California. Pressure has been placed on New York regulators to
expedite the approval steps for siting new plants in the state. However, at
the same time, environmental groups closely guard the proposals for new
plants and often lobby for limitations on how and where the new plant will
produce power. This appears to be the case in Sithe Energies' Ramapo plant,
which is proceeding on the condition that it will not use water resources to
generate power.

While other new plants are being planned in New York, realistically it will
be two years or more before they come online and provide sufficient capacity
to ease concerns about shortages. Meanwhile, the state enters this summer's
season with significant doubts about its ability to meet power demands. "New
York City, like other areas of the Northeast, the Midwest and California, is
in a very serious situation," reported a member of the New York Public
Service Commission to the New Assembly.

While the entire state of New York is subject to shortages, the problem
appears to be particularly acute in New York City. A November 2000 FERC
report entitled "Investigation of Bulk Power Markets, Northeast Region,"
highlights specific capacity problems in the New York City/Long Island
community of 11 million people. These areas are particularly vulnerable
because they are isolated from most of the state's grid, the study says. Like
northern California, which suffered rolling blackouts due to transmission
constraints, New York City and Long Island can only import limited quantities
of power on constrained transmission lines. Hydro and fossil resources are
plentiful in upstate New York, but cannot reach the city. Being both densely
populated and heavily residential, it is difficult to site new power plants
in the area. Consequently, 80 percent of the power that the city consumes is
generated by the city. New plants are being proposed because New York City
reportedly will be 300 MW short of its required 8,428-MW generating capacity
needs this summer. That projected shortfall is expected to increase by
another 200 MW by summer 2002.

Increased demand is causing additional problems for the energy markets of New
York City and New York State. Demand in the state rose by 2,700 MW from 1995
to 2000, or 2.5 times as fast as new generation capacity was added. This
year's demand is expected to reach 31,100 MW, or about 3.7 percent above
regulators' earlier forecasts. According to the FERC report, New York City's
load should reach 10,535 MW this summer alone, requiring 8,428 MW of in-city
capacity, along with imports, to meet demand and provide a reserve margin.
With a current capacity of 8,132 MW, there is a potential 296 MW shortfall.
Long Island has a potential 131 MW shortfall to meet the required 4,653 MW of
power.

The report confirms earlier projections by FERC Chairman Curt HSbert and
others that unless New York gets additional generation capacity online within
the next few months, the state could suffer some of California's problems.
However, despite the need for additional power generation in the state, the
intense public scrutiny of Sithe's plant in Ramapo echoes similar protests
from environmental groups and politicians for new generation plants
throughout the state. For instance, the New York Power Authority's (NYPA)
plan to install ten 44-MW combustion turbines by June was met with opposition
from environmental groups like the New York Public Interest Research Group
(NYIRG), which has sued the NYPA, charging that it circumvented the
environmental review process for siting new plants. In addition, FERC's
report included data from the New York ISO indicating that there were
approximately 74 projects proposed to be built in New York State (as of
November 2000). The report indicated that only one of these projects is
likely to be built in the next three to four years.

Although Sithe has modified its plans into a smaller peaking unit, McGowan
has reiterated that New York should not fall behind in meeting its energy
requirements. If it does, it will make the same mistakes for which California
is now paying a tremendous price. Along the same lines, William Muesler, CEO
of the New York ISO, recently said that to avoid a replication of
California's market meltdown, New York must move quickly to build more power
plants. Muesler cited that 8,600 MW of new power plant capacity, 25 percent
more than is currently available, must be constructed in New York by 2005 or
shortages will become likely, pushing up prices and increasing the odds of
rolling blackouts.

However, despite these clear warnings about the need for new power plants,
"not in my back yard" has been a common response in New York. Even New
Jersey's acting Governor Donald T. DiFrancesco has joined the ranks of those
opposing new power plants in the region. DiFrancesco reportedly told a
meeting of about a dozen North Jersey mayors who oppose new power plants that
he has created a task force to help opponents of various power plant projects
in New York and New Jersey. Included in the task force are members of
DiFrancesco's own staff, the state Department of Environmental Protection and
the Attorney General's Office. Moreover, although California offers a clear
picture of the ramifications that can result from not establishing adequate
supply, New York appears to be heading down a similar path. Although
California and New York have different restructuring models, one market
factor is the same in both states: supply that cannot meet demand. We know
the toll that this inequity has had on California. Is it only a matter of
time before New York suffers the same consequences?

An archive list of previous IssueAlerts is available at
www.ConsultRCI.com

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long-standing reputation as an expert on  energy issues.

Copyright 2001. SCIENTECH, Inc. All rights  reserved.


These are funny.  I thought it might be enron photos at first.

-----Original Message-----
From: Kelly, Katherine L.
Sent: Friday, April 19, 2002 3:50 PM
To: 'lvalencia@hess.com'; 'beverly.b.beaty@williams.com'; Garcia,
Clarissa; Homco, Meredith; Allwein, Robert; Lamadrid, Victor; Bryan,
Gary; Denetsosie, Troy; Germany, Chris; Patton, Anita K.
Subject: FW: photos

-----Original Message-----
From: Garza, Maria
Sent: Friday, April 19, 2002 3:46 PM
To: Kelly, Katherine L.
Subject: FW: photos

-----Original Message-----
From: Braeshollow [mailto:braeshollow@mcleodusa.net]
Sent: Friday, April 19, 2002 9:45 AM
To: CGKNAUB@AOL.COM
Cc: Garza, Maria
Subject: Fw: photos

----- Original Message -----
From: "Demoine Menn" <dmenn@1stchoiceinc.com>
To: "Properties Demoine" <propertiesdemoine@1stchoiceinc.com>; "Rena
Whigham" <rwhigham@1stchoiceinc.com>; "Glenda Arnett"
<garnett@1stchoiceinc.com>
Sent: Wednesday, April 17, 2002 11:17 AM
Subject: Fw: photos

>
> ----- Original Message -----
> From: "Lisa Towne" <LTowne@1stchoiceinc.com>
> To: "Demoine Menn" <dmenn@1stchoiceinc.com>; "Gruenewood Villa"
> <gruenewoodvilla@1stchoiceinc.com>; "Lands End"
<Landsend@1stchoiceinc.com>;
> "Summit Oaks" <Summitoaks@1stchoiceinc.com>; "Summerview"
> <Summerview@1stchoiceinc.com>; "Westwood Plaza"
> <westwoodplaza@1stchoiceinc.com>
> Sent: Wednesday, April 17, 2002 9:44 AM
> Subject: FW: photos
>
>
> >
> >
> > -----Original Message-----
> > From: Shari Fallaha
> > Sent: Tuesday, April 16, 2002 4:41 PM
> > To: Angel Salinas; Linda Gross; Lisa Massey; Lisa Towne; Sara Garza;
> > Angelica Garcia (E-mail); Cindy Rangel (E-mail); Cindy Wilson (E-mail);
> > Lisa Grant (E-mail); Liz deRivera (E-mail); Marissa Zito (E-mail);
> > Meyada Belt (E-mail); Rebecca Garcia (E-mail); Tammy Shih (E-mail)
> > Subject: FW: photos
> >
> >
> >
> >
> > -
> >
> >
>
>


I though you might like to read this one.    John

Return-path: <Shirleych@aol.com>
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Full-name: Shirleych
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?

-----Original Message-----
From:
Frances Pearce <horns02@ibm.net>
To: Barb Bunten
<Barjobun@aol.com>
Date:
Monday, October 16, 2000 8:43 AM

IMPRESSIVE LETTER FROM LIZ CHENEY PERRY

In this America of
ours, where the passion for publicity is a disease and
where swarms of
foolish tawdry moths dash with rapture into its consuming
fire, it was a rare
good fortune that brought to eminence a man so reserved,
so unassuming, so
retiring, so gracious to high and low, and so serene."
Judge Learned
Hand in tribute to Justice Cardozo, 1938.

Here are some things America
should know about my dad, Dick Cheney.? He
loves the mountains and
rivers and prairies that stretch into forever in
Wyoming.? He is of the
American West.? His handshake is firm.? He looks you
in the
eye.? His word is his bond.? He is a world class listener, and
when
he talks, it is always worth listening.? I have never known a wiser
man.
To my three daughters, he is "Papa."? Watching him with
his granddaughters
is a great joy.?? My daughters are young and
their concerns are the concerns
of little girls -- dolls and play-dough and
first friends.? He has infinite
time for them, as he always has for my
sister and me.? He is never rushed,
never hurried.? He is supremely
kind, loving and patient - listening to
their latest song from school,
reading bedtime stories, or teaching them how
to fish (a lesson Cheneys learn
early).
He grew up in Casper, Wyoming in the days when you could ride your
bike out
of town and hunt rabbits on the prairie.? His dad, a World War
II veteran,
was a career civil servant with the Soil Conservation
Service.? His mom
worked as a secretary at Bustard's Funeral Home to
make ends meet.? He
pitched for the local American Legion baseball
team.? He owed much of his
skill to my grandmother, who had played for
the Syracuse, Nebraska
Bluebirds, a nationally-ranked girls' softball
team.? She caught his pitches
many evenings on their front lawn at 505
Texas Place.
He was the first in his family to graduate from college.?
He built
powerlines across Wyoming and Colorado to help pay his way.? He
carried a
ticket for six years in the International Brotherhood of Electrical
Workers.

He married his high school sweetheart, Lynne, in
1964.?? One look at the
inscriptions they penned in each other's
high school yearbooks and you know
they were as deeply in love at 18 as they
are today.? He was the captain of
the football team and she was the
homecoming queen.? Getting her elected was
his first political
campaign.
There have been lots of other campaigns since then.? Despite
his success,
he's not a typical politician.? He's not a
glad-hander.? He's not a
fast-talker.? He's not slick.? He is
who he is.? He is real and honest and
true.?
He loves this
country.? He knows how blessed we all are to be Americans.?
He
taught my sister and me that we owe everything we have to the brave men
and
women who died so that we could be free.? When we were young, he
took us to
the battlefields where the Civil War was fought.? He taught
us to love
history and to revere this great nation.???
Serving as Secretary of Defense was the greatest honor of his life.? I
have
heard him say that this was because of the troops, the men and women of
the
U.S. military.? I went with him to Arlington National Cemetery the
day of
the memorial service for the servicemen and women who died in the
Persian
Gulf War.?? I stood next to him in the amphitheater with
the families who
had lost sons and daughters, husbands and wives, watching as
the military
jets flew overhead in the missing man formation.? It was
the first time I
ever saw tears in his eyes.
There are cynics today who
would have us believe that no politician is a man
of honor.? Maybe the
last eight years have done this to us.? I hope not.
There are good
people in American politics today; honorable and wise people,
people who keep
their word and inspire us to live lives of goodness and
truth.? There
are leaders among us.?
In Governor Bush and my father, America has the
chance to vote for two of
these men this Election Day.
Liz Cheney Perry


THIS MESSAGE IS FROM THE SECRETARY OF THE BOARD OF TRUSTEES, ARTIS G.
HAMPSHIRE-COWAN, ESQ:

President Swygert asked that I forward the following memorandum to your
attention.

-----Original Message-----
From: Swygert, H. Patrick
Sent: Wednesday, November 01, 2000 5:48 PM
To: AllEmployees; Faculty; AllStudents
Subject: Chairman Savage Honored

      November 1, 2000

MEMORANDUM

To:  Howard University Community

From:  H. Patrick Swygert
  President

SUBJECT: Chairman Savage Honored

Frank Savage, Chairman of the Board of Trustees, was honored on Monday,
October 30, by the Governor's Committee on Scholastic Achievement of New
York State at its annual Robert F. Wagner Memorial Dinner Dance.  Chairman
Savage was cited for his leadership in education and commitment to the well
being of New York citizens.

Since its founding in 1955, the Governors Committee on Scholastic
Achievement has awarded approximately $5,000,000 to more than 3,500
deserving students in New York's public, parochial and private schools in
the form of four-year college scholarships.  Mr. Edward Lewis, Publisher of
Essence Magazine, served as Dinner Chairman.  I know you join me in
congratulating Chairman Savage.

HPS:as


Dear Julie:  Were you able to find out by Intratex is not in good standing
franchise tax-wise?  I'm not sure about where to go from here since I have my
report complete and check ready to send to the Tx Railroad Commission.

Please let me know what you found out.

Thanks,
Mary

Mary C. Ogden
Legal Specialist
Enron Wholesale Services/Enron Americas/Legal
1400 Smith Street, EB 3876d
Houston, TX  77002-7361
Phone:  713-853-7796
Fax:  713-646-3490
Mary.Ogden@enron.com


Rappaport's comments are potentially very negative to us.  I think we should
write him a letter in protest.    Mark


Yes but gtc's not confirmed as complete set and long descriptions not yet
reviewed.

David Forster
08/25/99 03:06 PM
To: Mark - ECT Legal Taylor/HOU/ECT@ECT
cc:
Subject: Signoffs

Mark,

Before we say "Auf Wiedersehen", I wanted to catch up on some housekeeping.

Could you please confirm that you have now signed off on each of the
following items for NA:

- NA GTC's
- NA ETA
- NA PA
- Brochure contents (including letters)
- Website Contents (including help and FAQ's)
- General legal relationship and structure of the website and the contracts.
- Long and Short descriptions

Thanks,

Dave


Thank god.  I have a commrade in email humilation.  Thank you, Joseph.

Best,
Jeff

-----Original Message-----
From: Joseph Tambornino [mailto:josephtambornino@yahoo.com]
Sent: Friday, August 31, 2001 4:46 PM
To: eveningmba@haas.berkeley.edu
Subject: Sujan's True Identity

Comrades:

It is with a sense of the most abject humiliation that
I admit to you I made a total mess of Sujan's surname
in my listing of the SAC members in yesterday's
message.

His actual moniker is:

Sujan Punyamurthula

Haas email:  punyamur@haas.berkeley.edu

My sincere apologies to Sujan for this unconscionable
oversight.  Please let it not unduly impugn my moral
credibility, and thank you all for your condescending
forebearance of my personal failings.

JT

=====
Joseph Tambornino
Vice President
Hall Equities Group
(925) 933-4000

__________________________________________________
Do You Yahoo!?
Get email alerts & NEW webcam video instant messaging with Yahoo! Messenger
http://im.yahoo.com


Why


The First Contingency Transmission Cut is also known as "Redispatch."

Reagan C. Rorschach
Enron North America
1400 Smith Street
Houston, Texas 77002
713.345.3363


UserName: CAMPB54792

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FYI

-----Original Message-----
From: Fergus, Gary S.
Sent: Tuesday, May 08, 2001 1:38 PM
To: Andy Pickens (E-mail); Barrett H. Reasoner (E-mail); David J. Noonan
(E-mail); Jean Frizzell (E-mail); Michael L. Kirby (E-mail); Michael
Molland; Mike D. Smith (E-mail); Peter Meringolo; Richard B. Sanders
Esq. (E-mail); Robert C. Williams (E-mail); Susan Bisop (E-mail)
Subject: FW: Operational Questions

-----Original Message-----
From: Richard Rochman [mailto:ROCHMAR@hdcdojnet.state.ca.us]
Sent: Tuesday, January 16, 2001 1:09 PM
To: GFergus@brobeck.com
Subject: Re: Operational Questions

Gary--As I recall, we agreed to permit necessary repairs but for the repair
actions to be logged or tracked in some way.  Thanks.  -Rich

>>> "Fergus, Gary S." <GFergus@brobeck.com> 01/16/01 11:18AM >>>
Rich,
 I just received a phone call from the IT department at EPMI.  They
have two computers which require immediate maintenance.  The first is a
desktop of an individual who sits at the front desk.  Her work station is
inoperable and part of the fix may be to format the hard drive.  Second,
there is a laptop for someone who is not a trader, which will not boot.  In
order to repair that machine, they may have to format the hard drive as
well.  At the present time, there is no easy way to copy the contents of the
hard drive before those machines are repaired, because they are inoperable.

 Based on our prior discussions, it is my understanding that for
operational needs such as these, EPMI is free to repair these machines
notwithstanding the request for preservation of data.

 If for any reason you have a different understanding, please let me
know immediately.

Sincerely,
Gary Fergus

=======================================================
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When: Tuesday, January 22, 2002 11:30 AM-12:30 PM (GMT-06:00) Central Time (US & Canada).

*~*~*~*~*~*~*~*~*~*


2 %

	Susan Rance@ENRON
	09/28/2000 09:42 AM

		 To: Veronica Parra/HOU/ECT@ECT, Nedre Strambler/HOU/ECT@ECT, Fran L
Mayes/HOU/ECT@ECT, Felicia Solis/Enron Communications@Enron Communications,
Bob Carter/HOU/ECT@ECT, Travis McCullough/HOU/ECT@ECT, Lisa
Mellencamp/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Richard B
Sanders/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT, Joseph Deffner/HOU/ECT@ECT,
Brian Kerrigan/HOU/ECT@ECT, Lewis Worthy/HOU/ECT@ECT, Mary
Perkins/HOU/ECT@ECT, Jason Chumley/HOU/ECT@ECT, Brad Alford/ECP/HOU/ECT@ECT,
Christopher Coffman/Corp/Enron@Enron, William Keeney/HOU/ECT@ECT, Catherine
Clark/HOU/ECT@ECT, David Marshall/HOU/ECT@ECT
		 cc: Lisa Best/Corp/Enron@Enron
		 Subject: August and September East Coast Power Invoice

Within the next two days, could you please tell me the percentages/amount of
time you spent on East Coast Power during the months
of August and September.  In addition, could you look over the list below to
see if there are any additional employees in your group that
spent time on ECP, so we can ensure we bill all of our used resources to ECP.
Thanks for you cooperation.

***Mary Perkins -  Could you forward the number of transactions and accounts.

***Jason Chumley - Could you forward the number of contractor hours and
help/remote support hours.

HR - Veronica Parra, Nedre Strambler, Fran Mayes, Felicia Solis
Legal - Bob Carter, Travis McCullough, Lisa Mellencamp, Shelia Tweed, Richard
Sanders, Michelle Cash
Corporate Finance- Joe Deffner, Brain Kerrigan, Lewis Worthy, Mary Perkins
IT- Jason Chumley
Structuring/Technology  - Brad Alford, Chris Coffman, Bill Keeney, Catherine
Clark
Insurance- David Marshall


CONGRATULATIONS ALL WHO PARTICIPATED IN THE SEPTEMBER BIKE COMMUTE CHALLENGE!!!
We had a very successful month - Thanks to all who participated!
TEAMS 1-6 please join us for lunch in MT HOOD 11:30 -12:30 Wednesday October 3rd for our Awards Ceremony.
The Best team will receive Lunch @ Mothers Bistro (by the end of October)
The following Individual Awards will be presented w/ a $25 Gift Certificate:
* Most Trips
* Most Miles
* Best Dressed - (teams vote @ lunch)
* Best Story

Represent Enron @ the Bicycle Hubbub Awards Ceremony:
If you participated in the Bike Commute Challenge - either as an individual or through your workplace - come on down and celebrate our collective accomplishments! More than 185 businesses have registered - we'll have the final results at the HUBBUB on Thursday, October 11th, from 6-8 PM at the Bridgeport Brew Pub, 1313 NW Marshall, Portland. Join other BCC participants for subsidized pizza and see if your workplace won the coveted Second Wind Chimes from Sellwood Cycle Repair for the most bike commutes in September! Children welcome.

** Thanks to Mike Tully and Bob Anderson for the Bike Commute Website!!!!


Please make sure that you have these calcs set up,  as I am sure that we will
be asked for this information in 5,000 different ways in the next few days.
I want to thank all of you for your help on this.  It is vital that these
numbers be right, as legal and others are presenting these numbers to PG&E to
state our case.

Thanks Again


Here is the way we would like to see the restricted list for the EP Blanco
Avg products -- I have omitted and added counterparties.  Can we make these
changes as soon as possible?  I would like to be able to tell the new
counterparties as soon as possible so they can start clicking!  Thanks!


Here's another one, 500 dth from Z0/ZL to Dungannon for Nov-Mar and / or  Apr 02 - Oct 02.  I'm guessing max rate.  Let me know.  I just want to make sure you have it to sell.

Also, how does the open season work?

 -----Original Message-----
From: 	"Overton, Michelle" <Michelle.Overton@ElPaso.com>@ENRON
Sent:	Wednesday, October 24, 2001 8:55 AM
To:	Germany, Chris
Subject:	RE: Capacity

Hey Chris - we have capacity for both of the packages you listed below.

Z0/ZL to Z4 - Carrol County Meter:  Rate is Max rate

Z0 or Zl to Broad Run:  I can give you $.18 ($.16 demand/$.02 commodity)

If you want this capacity, we will be required to post an open season.....

-----Original Message-----
From: Germany, Chris [mailto:Chris.Germany@ENRON.com]
Sent: Tuesday, October 23, 2001 5:02 PM
To: Overton, Michelle
Subject: Capacity

I'm looking for the following capacity, let me know if you have it to
sell.

Z0 or ZL to Z4 - Carrol County Meter, 1,000 day for Nov-mar and
Nov-1year.

Z0 or Zl to Broad Run, 10,000 day for Nov-mar.  I think Corey showed a
demand $.22 before which is above TCO pool by about $.17.  Let me know.

Thanks

**********************************************************************
This e-mail is the property of Enron Corp. and/or its relevant affiliate and
may contain confidential and privileged material for the sole use of the
intended recipient (s). Any review, use, distribution or disclosure by
others is strictly prohibited. If you are not the intended recipient (or
authorized to receive for the recipient), please contact the sender or reply
to Enron Corp. at enron.messaging.administration@enron.com and delete all
copies of the message. This e-mail (and any attachments hereto) are not
intended to be an offer (or an acceptance) and do not create or evidence a
binding and enforceable contract between Enron Corp. (or any of its
affiliates) and the intended recipient or any other party, and may not be
relied on by anyone as the basis of a contract by estoppel or otherwise.
Thank you.
**********************************************************************

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No, just hold on -- we're waiting for final settlement documents from
Reliant, with the Ajello release.  Michelle

"Bill W. Ogden" <bogden@ogwb.com> on 09/26/2000 09:36:57 AM
Please respond to <bogden@ogwb.com>
To: "Michelle Cash" <michelle.cash@enron.com>
cc:
Subject: Ajello

Hi Michelle...just a note; I haven't heard anything about the settlement,
and have neither sent nor received a dismissal order. Is this ball in my
court? Let me know.
Best regards,
Bill


Building maintenance somehow got a hold of Debra and she knows about the hole in the wall.
I told her I had no idea how it happened.   I just wanted you to know.
I basically told her I found the hole and I called on my own.  The maintenance people have her number on file
or something, so she was looking around for the original person that called.

Sorry.  Thought I could keep it a secret.  You can't keep anything from her it seems.

Jill


Electric Utility Consultants Inc. (EUCI)  has four upcoming conferences that address the most current issues in electric power business!

Electricity Market Design Conference, March 25-26, 2002, Atlanta, GA

Power Generation Asset and Portfolio Management Conference, March 26-28, 2002, Atlanta, GA

Ancillary Services Conference, April 10-12, 2002, Denver, CO

 Managing Distribution in a Restructured Environment, May 14-17, 2002, Westminster, CO

See blow for a brief description of each conference and the links to the conference brochures:

  _____

Electricity Market Design Conference

March 25-26, 2002, Atlanta, Georgia

OVERVIEW

This Conference will focus on how to design competitive electricity markets that maximize the benefits to consumers while at the same time maintaining the financial viability of companies participating in these markets.

The brochure for the Electricity Market Design Conference, March 25-26, 2002, Wyndham Hotel Downtown, Atlanta, GA can be obtained by clicking on the link below:

<http://www.euci.com/pdf/MrktDesgn.pdf>

  _____

Power Generation Asset and Portfolio Management Conference

March 26-28 2002, Atlanta, Georgia

OVERVIEW

This conference will highlight the commonalties and common applications between the asset management processes used throughout the enterprise.  The conference will emphasize the need to link the physical power generation asset management processes to the activities and processes of the trading and marketing process.  The processes of Asset management will be addressed from three distinct perspectives, first, the long-term perspective of portfolio developers, second the more medium term perspective of maintenance/system planners and third the conference will link short term issues of the trading & marketing departments. The purpose is to show how these processes can be integrated to the individual assets (plants) in order to provide consistent and profitable strategies for the generation asset owner.

The brochure for the Power Generation Asset and Portfolio Management Conference, March 26-28, 2002, Wyndham Hotel Downtown, Atlanta, GA can be obtained by clicking on the link below:

<http://www.euci.com/pdf/powergeneration.pdf>

  _____

Ancillary Services Conference

April 10-12, 2002, Denver, Colorado

OVERVIEW

As more and more regions in North America open wholesale markets to competition, the importance of ancillary services is increasingly recognized. These services, generally provided by the same generators that produce the competitive energy product, are vital for both commerce and reliability.

This conference will cover the key engineering, economic, market, and policy issues associated with these functions. The conference will also present updates on the status of the various markets (including market design and operation problems and their solutions, successes, prices and costs) in North America. These markets include New England, New York, PJM, ERCOT, and Alberta. Developing markets, such as Ontario, will also be covered. The market designs encompass issues such as day-ahead scheduling, real-time operation, integration with the markets for energy and congestion, measuring the real-time delivery of these services, the operating costs to produce these services, and the potential for customer loads to supply these services.

The brochure for the Ancillary Services Conference, April 10-12, 2002, Wyndham Hotel - Tech Center, Denver, CO can be obtained by clicking on the link below:

<http://www.euci.com/pdf/anc_svcs.pdf>

  _____

 Managing Distribution in a Restructured Environment

May 14-17, 2002, Westminster, CO

OVERVIEW

Managing an electric distribution company, or any part of a distribution company, is a difficult endeavor in today's operating environment.  Customers and regulators demand reliable service.  Stockholders require more return from capital expenditures.  Training and retention of capable employees has become a major concern.   Selection of the investments and expenses that provide the most return is a continuous challenge.  With increasing constraints, and more-demanding performance expectations, distribution managers need new ideas and concepts to lead their companies.

"Managing Distribution in a Restructured Environment" focuses on solutions to the issues that have made electric distribution such a challenging business.   It covers a full spectrum of topics, from distribution planning, load management services, reliability, customer relationship management, and management of aging assets.   Details from case studies are presented from utilities around the country.  Leaders in the distribution business present both novel and proven concepts, which participants can take home and apply in their business.  Coupled with a pre-conference workshop "Maximizing Performance Under Budget Constraints" and a post-conference workshop "Implementing Reliability-Centered Maintenance to Reduce Costs", the conference gives valuable insights and the edge that participants need to be successful.

The brochure for Managing Distribution in a Restructured Environment, May 14-17, 2002, Westin Hotel, Westminster, CO can be obtained by clicking on the link below:

<http://www.euci.com/pdf/dist_conf0502.pdf>

Please print the brochure and fax the registration form back to us at 303-741-0849 if you would like to attend any of these events. You can also register by calling us at 303-770-8800 or online.

We have updated our website to include new conference proceedings on recently-held "Transmission Expansion and Systems in Transition", "Portfolio Optimization for Electric Utilities", "Electric Power Market Performance", "Performance-Based Ratemaking", "Ancillary Services", "Performance Management for Electric Distribution Companies", "Power Generation Asset Management", and "Power T&D Asset Management" conferences. Please visit www.euci.com <http://www.euci.com/> and review the conference proceedings section for these and other proceedings.

Kindly forward this announcement to your colleagues who might benefit from attending these events.

Best Regards,

L. Mrig

Electric Utility Consultants, Inc. (EUCI)

5555 Preserve Drive

Greenwood Village CO 80121

Tel: 303-770-8800

Fax: 303-741-0849

lmrig@euci.com <mailto:lmrig@euci.com>


Reservation status has changed. Details of the reservation are listed below:
ASSIGNMENT_REF = 29945
SELLER_CODE = AZPS
SELLER_DUNS = 958982563
CUSTOMER_CODE = EPMI
CUSTOMER_DUNS = 848921276
AFFILIATE_FLAG = 0
PATH_NAME = W/AZPS/AZPS-AZPS/FOURCORNE345 - PNPKAPS230//
POINT_OF_RECEIPT = FOURCORNE345
POINT_OF_DELIVERY = PNPKAPS230
SOURCE = FOURCORNERS
SINK = PNPK
CAPACITY = 25
CAPACITY_REQUESTED = 25
SERVICE_INCREMENT = HOURLY
TS_CLASS = FIRM
TS_TYPE = POINT_TO_POINT
TS_PERIOD = OFF_PEAK
TS_WINDOW = FIXED
TS_SUBCLASS = WHEEL
NERC_CURTAILMENT_PRIORITY = Nerc Priority 1
OTHER_CURTAILMENT_PRIORITY = Default
START_TIME = 04/11/2002
STOP_TIME = 04/11/2002
CEILING_PRICE = 1.95
OFFER_PRICE = 1.95
BID_PRICE = 1.95
PRICE_UNITS = $/mW
PRECONFIRMED = YES
ANC_SVC_LINK = N/A
ANC_SVC_REQ = N/A
POSTING_REF = 0
SALE_REF =
REQUEST_REF =
DEAL_REF =
NEGOTIATED_PRICE_FLAG =
STATUS = CONFIRMED
STATUS_NOTIFICATION = lisa.gang@enron.com
STATUS_COMMENTS =
TIME_QUEUED = 04/10/2002

TIME_OF_LAST_UPDATE = 04/10/2002
PRIMARY_PROVIDER_COMMENTS =
SELLER_COMMENTS =
CUSTOMER_COMMENTS = please call 503 464-5070 if questions
SELLER_NAME = AZPS
SELLER_PHONE = 602.250.1128
SELLER_FAX = 602.250.1155
SELLER_EMAIL = oasisadm@apsc.com
CUSTOMER_NAME = Enron Power Marketing, Inc.
CUSTOMER_PHONE = (713)853-3801
CUSTOMER_FAX = (713)646-8272
CUSTOMER_EMAIL = bill.rust@enron.com
REASSIGNED_REF = 0
REASSIGNED_CAPACITY = 0


FYI -
wanted to let you guys know about a few things:
1.  There is a central desk vacation calendar on my desk by the sun machine -
it is a little black date book.  Please put any future requests in there so
that we can keep track of who needs off when.  I would like to try and keep
from having more than 3 people out at a time.
2.  Physical gas daily options - when booking these, please be very careful.
These need to have daily swaps on them in sitara as opposed to monthly
swaps.  This will insure that the physical deal comes to the physical trader
at gas daily as opposed to mid.  This is very important to avoid OA variances.
3.  When booking deals in sitara, please look at your swaps when they are
created to verify that they are coming at the right mid/gd price.  This is
important because we have so many deals that are booked to new mids and I
notice last night on a gd option, that the swap did not come at the correct
gd curve.
4.  I am going to set up a mtg. for friday or monday to discuss OA, the
process and how to prepare forms.
5.  Please take advantage of time that you can spend with your traders.  All
the traders have expressed their approval for each of their book admins to
spend a morning watching them trade to better understand why they take the
positions that they do.  The only request I have had is that we sit there
quietly and observe and ask questions after trading.  Please utilize this
opportunity to build a relationship with your traders - this is good for
career development.
6. I will try and set up individual meetings with each of you to go over your
training plans.

Please shout with any questions.
PL


---------------------- Forwarded by Sara Shackleton/HOU/ECT on 05/04/2000
10:13 AM ---------------------------

Andrea Bertone@ENRON_DEVELOPMENT
08/25/99 06:57 AM
To: Sara Shackleton/HOU/ECT@ECT
cc:
Subject: Re: Brazilian Regulations for Swaps & Prepays

Sara: attached is the memo that I received from Tozzini & Freire yesterday.
As you will notice, the memo addresses Gustavo's questions and corrects
certain assumptions made by him in his e-mail.

Sara Shackleton@ECT
08/24/99 02:10 PM
To: Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Brazilian Regulations for Swaps & Prepays

Help me understand HOW MANY Tozzini memoranda exist which address financial
swaps and derivatives.  I e-mailed Michael about this attachment and I think
his response was that Antonio Felix ADDED comments to the attachment.  I am
not clear.  I am aware of only TWO Tozzini memos :  dated 12/26/97 (physical
trading of energy) and 2/20/98 (local derivatives market).  Let's all start
from the same point.  Thanks.  Sara
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 08/24/99 11:06
AM ---------------------------

Michael Guerriero@ENRON_DEVELOPMENT

08/20/99 07:45 AM

To: Sara Shackleton@ENRON_DEVELOPMENT
cc: Gustavo Junqueira/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, D'Arcy
Carroll/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maria Ines
Granado/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
Subject: Brazilian Regulations for Swaps & Prepays

Don Black has suggested we get you in the loop on the below issues we are
seeking answers on. We have some pending financial transactions that we would
like to work through all the Brazilian mechanics before proceeding. Your
primary contact down here for this issue will be Maria Ines Granado. Please
provide us with your comments as soon as possible so that we do not encounter
a transactional conflict.

Gustavo thank you for all your work to date we will keep you briefed to make
sure we have your input. Please follow up on the Tozzini issue we discussed
to make a final decision on their input.

Thanks
MFG

---------------------- Forwarded by Michael Guerriero/ENRON_DEVELOPMENT on
08/20/99 09:40 AM ---------------------------

	Enron International

	From:  Gustavo Junqueira                           08/17/99 06:19 PM

To: afac@tfts.tozzini.com.br
cc: Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael
Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, D'Arcy
Carroll/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marcelo
Parodi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Scott
Porter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maria Ines
Granado/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David S
Reinfeld/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Brazilian Regulations for Swaps & Prepays

Antonio Felix,

As Enron is finding several opportunities involving financial derivatives in
Brazil, we would like to get from Tozzini Freire Law Firm a summarized but
concise read on the "cans and cannots" of these type of transactions in
Brazil. Here is my understanding of the regulations from the memo you have
already sent to us regarding swaps and prepays as well as a list of the most
common examples of deals that Enron would be encountering in the marketplace.
I would appreciate if you could comment on what is written here and also add
further information so Enron can have some sort of menu of deals of this
nature that can be pursued. I would like to ask you to add your comment in
this same message to make the review process a little easier. Thank you
inadvance for your attention.

Swaps (Pulp & Paper, Petrochem, Power)

OTC Swaps

The Central Bank regulates swap transactions involving local financial
institutions acting either as dealers for their own account or as
intermediaries to the contracting parties. When the financial institutions
act as intermediaries, the agreements are in fact private agreements
negotiated by two non-financial companies, but become subject to the
requirements and regulations normally applicable to swaps involving financial
institutions. According to regulations currently in force, such swaps can
relate to exchange rates, interest rates, gold and price indices.

All of the swap agreements involving financial institutions must be
registered with CETIP or with another custody and clearing system authorized
by the Central Bank or the CVM (Brazilian SEC). As a matter of practice, the
agreements used by the banks that participate in the swap market do not
follow a standard form, since normally each bank has a particular sample form
with which it feels more comfortable.

Derivatives
In addition to exchange-traded derivatives and OTC swaps involving financial
institutions, there is no legal impediment, in principle, to derivatives
transactions being privately negotiated and entered into between two
interested parties. As a general rule in Brazil, as long as no specific
prohibition is found in the law, parties are free to negotiate agreements
that best suit their interests.

International Hedge
Central Bank regulations authorize that Brazilian companies enter into
transactions abroad, either in exchanges or having a financial institution as
their counterpart, to hedge against the fluctuation of interest rates,
exchange rates or commodity prices in the international markets.

Such hedge transactions must refer to payments in foreign currency scheduled
to be made by or to the Brazilian company in respect of commercial or
financial rights or obligations, or to payments in local currency arising out
of certain financial obligations subject to the variation of exchange rates
and payments relating to imports, exports or local transactions involving
commodities priced according to their valuation in foreign exchanges. The
commercial market exchange rates are applicable to foreign exchange
agreements referring to remittances of currency in connection with hedge
transactions.

When the underlying obligation/right is registered with the Central Bank, the
corresponding hedge transaction must be informed to the Central Bank within
10 days of its execution. When there is no registration with the Central
Bank, the banks executing the foreign exchange agreements relating to the
hedge transaction must verify the existence of the obligation/right being
hedged.

Examples

Commodity swap between two Brazilian companies:
As per what has been said above, there is nothing that precludes Enron Brazil
of entering into a swap with another Brazilian company regarding any
commodity traded by Enron (Pulp, Paper, Petrochem products, Power, Gas).
Enron does not need to be a financial institutions to provide swaps
transactions. On the other hand, I am not sure yet on the following points:
(1) Does such swap agreement should be registered with CETIP or any other
clearing system to be valid under Brazilian regulations? (2) What are the
taxes involved in a swap?

Commodity swap between a Brazilian company and an offshore company:
This kind of deal seems to be also available in the Brazilian market and the
only difference from example 1 would be the fact that it must be registered
with the Central Bank and it would involved transfer of foreign currency.

Commodity swap between two offshore companies but involving Brazilian exports:
I am not sure if Brazilian regulations would have anything to do with a
transaction like this one. I would assume that a Brazilian exporter would
sell to their offshore subsidiary and such subsidiary would sell to their end
customer. Enron would step in and offer a swap agreement for the offshore
subsidiary of the Brazilian company therefore Enron would not have any
involvement with Brazilian regulations because it would not be dealing with
Brazil.

Prepays (Pulp & Paper, Petrochem, Power)

The regulations currently in force governing export prepayments, especially
Central Bank of Brazil's Carta-Circular 2624, of February 14, 1996, establish
that all repayments of principal under such transactions must necessarily be
made by means of shipments of the relevant exported goods.  Carta-Circular
2624 allows cash remittances abroad only in regard to payments of interest
under the facility.  Therefore, it is not possible to structure a transaction
where the repayment of principal will be made only in cash or where the
borrower has the ability to choose between paying cash or exporting the goods.

A transaction that involves structuring a direct loan to the Brazilian
company where the value of the principal of which would be tied to the price
of the relevant commodity is very difficult to be approved.  Under a direct
loan registered with the Central Bank the borrower may remit all due amounts
of principal and interest in accordance with the schedule of payments
attached to the certificate of registration. The problem with such
alternative is that, although there are no express regulations preventing it
to do so, the Central Bank will most probably not issue a prior authorization
for such type of loan, as it only normally issues authorizations for normal
loans where the principal is a fixed amount and the interest rate is either a
fixed rate or a floating rate (normally based on LIBOR or US Treasury).  It
should also be noted that generally speaking all interest payments under such
an agreement are subject to withholding tax at the rate of 15% p.a.

CC 5 Account

A possible alternative way to structure a prepay would be by using a
non-registered loan with the Central Bank.  Under such alternative, the funds
disbursed by Enron under the loan would be remitted to Brazil through an
international transfer of Brazilian currency, as allowed by Circular 2677 of
the Central Bank of Brazil. The international transfer of Brazilian currency
("International Transfer") is a system which uses a non-resident current
account in Brazil and the Brazilian interbank foreign exchange market to
effect remittances of funds to and from Brazil.  Under such system, a lender
that wishes to disburse funds to a Brazilian borrower makes a foreign
currency deposit with a bank located outside of Brazil ("offshore bank")  and
instructs the offshore bank to deliver such dollars to a Brazilian bank in
exchange for Brazilian currency.  Such Brazilian currency is then deposited
in a non-resident account held by the offshore bank in Brazil and thereafter
transferred to the borrower. The repayments follow the inverse procedure,
i.e. the borrower deposits the amount in a non-resident account of an
offshore bank and instructs it to exchange the funds into foreign currency
and deliver them to the lender abroad.

The main differences between the registered loans and the non-registered
loans are that the non-registered loans are not subject to prior approval by
the Central Bank of Brazil (and therefore not subject to scrutiny as to their
minimum tenors and applicable interest rates) and the applicable foreign
exchange rate to non-registered loans is the floating rate (as opposed to the
commercial rate of exchange). All transfers of funds to Brazil as
International Transfers are subject to a Financial Transactions Tax ("IOF")
at the rate of 2% on the amount transferred, plus a bank fee that normally
ranges from 0.4% to 0.6% of such amount.  Any interest payments under a
non-registered loan are subject to withholding tax at the rate of 15% (or 25%
if the lender is located in a tax-haven jurisdiction).

I don't think this type of transaction is the best way to circumvent some of
the Brazilian regulations regarding prepayment given the bad press that deals
via the CC 5 Account mechanism would bring to Enron but I have it addressed
just in case someone does not share the same opinion.

Examples

Financial prepay between two Brazilian companies
Not allowed unless the company providing the prepay qualifies as a financial
institution as per Brazilian law. Since it will not be the case in Enron's
cases, we should not focus in these kind of transactions.

Financial prepay between a Brazilian company and an offshore company
As it has been mentioned before it is allowed as long as Enron can structure
the prepay in way where there is a pre-established amortization schedule for
principal and interest. It is very hard to structure a prepay with specific
split between principal and interest because the objective of the prepay is
to lock on a certain volume of a product and not on a specific price.
Therefore, if Enron prepays for a specific product on a floating basis the
attached value of that commodity can go up or down as the market fluctuates
as well as the total value associate to the deal. Such value can be either
principal or interest and it is impossible to determine what it will be.

Financial prepay between two offshore companies but one being a subsidiary of
a Brazilian entity
I think there is no restrictions in this case given the whole deal will be
closed offshore and the Brazilian authorities are not going to be involved.
It will most likely be a deal involving three parties: a company in Brazil,
its offshore subsidiary and Enron.

Physical prepay between two Brazilian companies
No restrictions.

Physical prepay between a Brazilian company and an offshore company
No restrictions as long as there is physical deliveries.

Physical prepay between two offshore companies but  involving Brazilian
exports
No restrictions. It would also involve three parties: a company in Brazil,
its offshore subsidiary and Enron.

Thanks,

Gustavo


Start Date: 4/25/01; HourAhead hour: 19;  No ancillary schedules awarded.
Variances detected.
Variances detected in SC Trades schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042519.txt

---- Energy Import/Export Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/25/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_SCOUT
  ENGY_TYPE: FIRM

---- SC Trades Schedule ----
$$$ Variance found in table tblInt_Interchange.
     Details: (Hour: 19 / Preferred: -250.00 / Final: -200.00)
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/25/01
  TRADING_SC: ECH1
  PNT_OF_INTRC: SP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 1
  DEAL_NO: 1


that what i said


I agree. I (or Chonawee) will go ahead and place the order for CPLEX. I think
that this will provide us with a great set of tools.
-Samer

	Pinnamaneni Krishnarao@ECT
	05/24/00 01:34 PM

		 To: Samer Takriti/Enron Communications@ENRON COMMUNICATIONS@ENRON, Tom
Halliburton/Corp/Enron@ENRON
		 cc: Grant Masson/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Chonawee
Supatgiat/Corp/Enron@Enron, Vince J Kaminski/HOU/ECT@ECT
		 Subject: Re: CPLEX

I talked to Vince about the optimization software issue. Vince said that if
there are technical reasons for having two different packages and the
benefits outweigh the costs of maintaining two licenses, we can go ahead and
buy both. In my view, it is a great advantage to have both, as each has its
own strengths relative to the other. We have spent some time trying to come
up with one package that solves all of our problmes without success. There is
no point is wasting more time on this effort. Let's go ahead and purchase
both.

Krishna.

From: Samer Takriti@ENRON COMMUNICATIONS on 05/24/2000 10:22 AM
To: Tom Halliburton/Corp/Enron@ENRON
cc: Grant Masson/HOU/ECT@ECT, Pinnamaneni Krishnarao/HOU/ECT@ECT, Stinson
Gibner/HOU/ECT@ECT, Chonawee Supatgiat/Corp/Enron@Enron
Subject: Re: CPLEX

Tom,
Vince prefers to have one software package (if possible). It is my
understanding that special ordered sets are recognized automatically
(internally) by Cplex. This seems to be the case for both Cplex and OSL
according to AMPL's web page and other references (check
http://www.ampl.com/cm/cs/what/ampl/FAQ/index.html#HowcanIusethesolver'sspecia
lorderedsetsfeature). As a result, the Cplex people feel that there is no
need to provide the user with the tools to represent special-ordered sets in
OPL. As a matter of fact, the incapability of Xpress to recognize them
automatically concerns me.
If you have special requirements, C code may be used to pass the information
to the solver (which is straight forward; all of Chonawee's testing was done
this way). Chonawee's benchmark shows a superior performance by Cplex (which
you indicated yourself in an earlier message).
If you feel that Xpress is the only way to go, then feel free to purchase it
(the purchase order is on hold for the time being). However, we need to check
with Vince first. I strongly feel that we should have one solver in order to
minimize cost and contractual headaches.
Let us try to get this issue resolved by this afternoon. Thanks.
-Samer


Just so there's no confusion: I, too, have accepted a position with UBS Warburg to be a part of its regulatory affairs team.

Alan Comnes

 -----Original Message-----
From: 	Belden, Tim
Sent:	Thursday, January 31, 2002 12:01 PM
To:	DL-Portland World Trade Center
Subject:	Office Update

Chris and I would like to take this opportunity to update everyone on what has been happening on the floor(s) during the last couple of weeks and what is likely to transpire in the weeks to come.  I'd like to begin by apologizing for the lack of broad e-mail communications or floor meetings over the last couple of weeks.  These have been very hard times and I know that people have wanted information.  It has taken us nearly a week to sort through who will be part of the UBS Warburg team and who continue with Enron.

In this e-mail I will explain: (1) who will be going to UBS Warburg, (2) who do the people working for Enron work for and what are they expected to do, (3) how will the physical separation between Enron and UBS Warburg happen, and (4) when will the sale of Netco to UBS Warburg be completed.  In addition to Chris Calger and me, the following Portland-based employees have accepted positions with UBS Warburg:

Last Name	First Name	Last Name	First Name
Amador	Susan	Oh	John
Anderson	John	Platter	M
Bulbes	Victor	Postlethwaite	John
Chang	Fang-Tzu	Richter	Jeffrey
Chatterton	Jill	Robinson	Donald
Crandall	Sean	Salisbury	Holden
Cutsforth	Diane	Scholtes	Diana
Dasovich	Jeff	Semperger	Cara
Davidson	Debra	Sheidun	Donna
Dean	Craig	Shields	Jeffrey
Dunton	Heather	Slinger	Ryan
Etringer	Michael	Solberg	Geir
Gilbert	Michael "Scotty"	Steiner	David
Gustafson	Mollie	Stokley	Marlin "Chris"
Hall	Stephen	Swain	Stephen
Heizenrader	Timothy	Swerzbin	Michael
Kandaswamy	Balachandar	Thomas	Jacob
Lackey	Christopher	Thome	Stephen
Lee	Eugene	Van Houten	Maria
Mallory	Patrick "Chris"	Villeggiante	Theresa
McDonald	Michael	Wente	Laura
Meyer	James	Williams	William J
Meyers	Albert	Woodland	Andrea
Mier	Michael	Yoder	Christian
Nelson	Kourtney

While there are a few people who are still making up their minds, the rest of the people in our office will be working for the Enron estate.  It is not entirely clear to me right now what the management team for west power looks like for the Enron estate now.  As I understand it, there are two primary initiatives on the estate side that people in Portland may be a part of.  The first is the disposition of our development projects that are already well under way.  Dave Parquet in San Francisco has been leading this effort together with the Portland asset development team.  This effort has been ongoing since December.  The second is the disposition of our west power commodity positions.  Jim Fallon is in charge of this for the entire company.  People working on this for Jim include Don Miller, Paul Racicot, Brad Richter, Ed Baughman among others.  I have placed a call to Jim and to Paul to get advice on how people in Portland should proceed.  I would recommend talking to Ed, Brad, Paul, or Don to get direction.  I have placed a call to several of these people to get direction and am waiting for a response.  I am hopeful that they will designate a lead person in Portland to coordinate the power procurement and delivery efforts.

As most of you know, the physical separation between UBS Warburg and Enron has already begun.  People who will continue to work for Enron will be located on the 4th Floor, while UBS Warburg will occoupy the 3rd Floor.  We hope to make the moves to the 4th Floor by the end of this week.  Moves within the 3rd Floor will take place the following week.

The UBS Warburg transaction is subject to one last pro forma regulatory hurdle.  While I don't have an exact date, I am told that it will likely be on or about February 6th.

Finally, I want to once again thank everyone for their help and cooperation over the last few weeks.  These have been really horrible times as the Enron story continues to unfold in the news at the same time that people are finding out about their future with Enron and UBS.  I know that this hasn't been easy for anyone.  I am deeply saddened overseeing the breakup of the awesome team that we have put together.  Whether you are going to UBS, remaining with Enron, or leaving the company, I wish everyone who worked on this team the best in their future endeavors.  It has been a distinct honor to work with each and every one of you.

Regards,
Tim


Teco Tap       20.000 / Enron


Stockholm syndrome (STOK-hom SIN drom) noun

   A phenomenon in which a hostage begins to identify with and grow
   sympathetic to his or her captor.

[After Stockholm where a hostage in a 1973 bank robbery became romantically
attached to one of her captors.]

   "Speaking of refugees, stories such as the Oct. 27 article reveal a sort
   of Stockholm syndrome among those imprisoned on our highways every day.
   We can only smile when we hear people explaining why they love their
   commute: `I focus on the day ahead,' `I listen to the radio,' or, our
   favorite, `I use the time to relax,' white-knuckle relaxation, no doubt!"
   Civilize our transport, The Providence Journal, Nov 5, 1999.

Consider the Stockholm syndrome if you have any doubt about the veracity of
the saying, `Fact is stranger than fiction'. In 1973, following a botched
robbery attempt, the perpetrator held four employees of a Stockholm bank
hostage in the bank vault. At the end of the five day captivity, police were
surprised to discover that the hostages were afraid of them and resisted
rescue. They had bonded with the robber, a prison escapee, and became
sympathetic with him. Later, they started a defense fund for him, testified
in his favor, and one of the female hostages even fell in love and became
engaged to him.

Of course, this phenomenon is not limited to the Swedes. Patty Hearst of the
US, heiress to the Hearst publishing fortune, was kidnapped in 1974 by the
Symbionese Liberation Army. She later joined her abductors and participated
in a bank robbery with them. More recently, an Indian Airlines flight was
hijacked and the passengers were holed up in the plane for more than a week.
At the conclusion of the drama, some passengers were heard saying about the
hijackers, `they were not bad people'.

Why do people turn around and begin to sympathize with their tormenters in
situations like these? It is one of the mysteries of the way the human mind
works. Perhaps it is a way for people to cope with the immense, immediate
stress of being in a situation where their lives depend on their captors. If
one threatens to shoot, and then doesn't, hasn't he done a favor to us the
mind apparently rationalizes. In a place devoid of external contact, the
view of reality becomes distorted and the victims may develop a fondness for
the only person in their life.

This week in AWAD we look at some of the syndromes, paradoxes, laws, and
principles that govern our minds.                                    -Anu

.............................................................................
To know the road ahead, ask those coming back. -Chinese Proverb

Be Guest Wordsmith for a week at A.Word.A.Day! You are invited to submit a
theme (5-10 lines of exposition) and a word list (12-14 words) relevant to
that theme to anu@wordsmith.org.  Please don't send definitions or usage
examples. Selected contributions will be published in coming weeks.

Pronunciation:
http://wordsmith.org/words/stockholm_syndrome.wav
http://wordsmith.org/words/stockholm_syndrome.ram