Enron Probe
Dow Jones, 01/30/2002
Ex-Enron Workers Plead With Congress For Financial Help
Dow Jones Energy Service, 01/30/2002

Former Enron Employee Warned Lay of Energy Contract Losses
Bloomberg, 01/30/2002
Former Enron Employee Told Lay Earnings Misrepresented
Dow Jones Energy Service, 01/30/2002

Ex-Enron Employees Ask Democrats for Secured Creditor Status
Bloomberg, 01/30/2002

USA: New Enron president no stranger to corporate storms.
Reuters English News Service, 01/30/2002

Enron Energy Services To Surrender Illinois License
Dow Jones Energy Service, 01/30/2002

USA: UPDATE 1-Probe needed into Enron's California deals-FERC.
Reuters English News Service, 01/30/2002

GAO to Sue White House for Energy Task Force Records
FOX News, 01/30/2002

White House Confirms Lay Memo But Hasn't Seen Lawsuit
Dow Jones Energy Service, 01/30/2002

Enron collapse memo details Cheney-Enron links
Associated Press Newswires, 01/30/2002
Judge Delays Ruling On Halting Enron Suits In Texas Crts
Dow Jones Energy Service, 01/30/2002
Enron collapse subjects British government, opposition to accusations
Associated Press Newswires, 01/30/2002

Bank of America Fires Two Bankers Who Handled Enron
Bloomberg, 01/30/2002
Lawmakers Fear 'Loopholes' In Electricity Deregulation Bill
Dow Jones Energy Service, 01/30/2002

Shareholder Files State Lawsuit Against Enron Execs
Dow Jones Energy Service, 01/30/2002

USA: Ex-Enron executive Baxter euologized for successes.
Reuters English News Service, 01/30/2002

_________________________________________________________________________________

Enron Probe
2002-01-30 15:18 (New York)

   By Kathy Chu
   Of DOW JONES NEWSWIRES

  NEW YORK (Dow Jones)--The results of an internal investigation into Enron
Corp.'s (ENRNQ) collapse may be released early next week, a company lawyer said
Wednesday.
  The report will be posted online, at the Web site of the  U.S. Bankruptcy
Court of the Southern District of New York.
The report is the culmination of Enron's three-month effort to account for
off-balance sheet partnerships that the company used to keep debt off its books
and to maintain a healthy credit rating.
  The transactions led the company last November to write down $1.2 billion of
shareholder equity and to restate four years worth of earnings.
  Enron formed the special task force in October, hoping to restore investors'
confidence in an energy-trading company that had begun to falter.
  The committee is made up of outside directors led by William Powers Jr., dean
of the University of Texas law school. William McLucas - former head of the
Securities and Exchange Commission's enforcement division and a partner at the
Washington, D.C., law firm Wilmer Cutler Pickering - represents the task force.
  McLucas didn't return phone calls seeking comment, and Powers couldn't
immediately be reached for comment.
The committee served as a liaison between Enron and the SEC, which launched
its own investigation into the company's  accounting practices last year.
  Deloitte & Touche serves as the task force's independent  accountant.
  The results of the investigation are expected to shed more light into the
complex books of a company that had more  than 3,500 units and numerous
off-balance sheet partnerships.
  Edward Ketz, an associate professor of accounting at Penn State's Smeal
College of Business, said that it's unlikely that more significant surprises
will come out of the report.
  But, he said, "if there's any further bombshell, the real damage will be done
with the accounting profession itself. It may give greater weight for Congress
to do something (about accounting guidelines)."
News of the internal report's release came during a hearing before Judge
Arthur J. Gonzalez of the U.S. Bankruptcy Court of the Southern District of New
York.
  Wednesday, Gonzalez approved the retention of two law firms, Weil Gotshal &
Manges and Togut Segal & Segal, as attorneys for the debtor.
  In doing so, the judge overruled an objection by Enron creditor Wiser Oil Co.
(WZR), which is owed about $7 million  in trade debt, asking that a separate
legal team be appointed for Enron's core unit, Enron North America. This
subsidiary includes the wholesale energy-trading operations,  which generated
90% of the company's $101 billion in revenue last year.
  Gonzalez noted that the creditor's concerns - one being that funds from the
Enron North America unit will be used to  benefit other subsidiaries - are
likely to be addressed in the next month, at court hearings to consider motions
for a trustee, examiner and a new cash-management system.
  The bankruptcy court, earlier this week, approved Milbank Tweed as the law
firm for Enron's official creditors  committee, after no objections were filed.
Also Wednesday, Judge Gonzalez disclosed that his wife is part of a New York
City pension fund involved in Houston litigation against Enron. But he said
this doesn't disqualify him from presiding over the Enron case.
  "The court has examined and does not believe that my partiality will be
compromised," said Gonzalez.
  When New York City pension matters are brought before the court, Gonzalez
will "take steps" to ensure that no conflicts of interest exist, he said.
  The New York City pension funds along with the Florida State Board of
Administration have asked the bankruptcy court to enter a detailed order
requiring Enron to preserve its books and records. The hearing is set for Feb.
5.
  The city and state pension funds are seeking the role of  co-lead plaintiffs
in class-action lawsuits filed against Enron in Texas, claiming securities
violations and fraud by company executives.
  In total, the New York City pension funds claim a loss of $109 million from
Enron-related investments, while the Florida State Board claims losses of $334
million.
  The New York City pension funds made up about 20% of his  wife's retirement
fund, said Gonzalez.

  -Kathy Chu; Dow Jones Newswires; 201-938-5392;
e-mail: kathy.chu@dowjones.com

Ex-Enron Workers Plead With Congress For Financial Help

01/30/2002
Dow Jones Energy Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

WASHINGTON (AP)--Laid-off Enron (ENRNQ) workers pressed for help Wednesday on Capitol Hill, putting faces to some of the stories of retirement nest eggs lost when the company collapsed.
Organized by the Rev. Jesse Jackson, several dozen workers piled in buses to make the 25-hour trip from Houston to appeal for help paying for mortgages, health care, groceries, children's tuition and other living expenses.
"I lost everything, because I believed in Enron," Jessie Patterson told House Minority Leader Dick Gephardt, D-Mo, and other Democratic lawmakers. Earlier, the workers met with AFL-CIO officials.
Gephardt pledged Democrats' help to assuage "this ... tragedy of great proportions."
He said Enron's implosion, the largest bankruptcy filing in U.S. history, should spur changes in laws governing pension and 401(k) plans that would give people more control over investments and greater protection against corporate mismanagement.
Enron's generous political donations and attempts to influence energy policy also should also spark congressional passage of long-stalled legislation aimed at reducing the influence of big money in politics, Gephardt said.
"I believe with all my heart that we have to clean up politics in this country," he said.
Gwen Gray, who worked in Enron human resources, said she processed millions of dollars in bonuses that were paid to retain key executives in the two months leading up to the bankruptcy, while workers were given 30 minutes to get out of the building without severance pay.
Almost 95% of Gray's 401(k) was invested in company stock. She said she has $109 left, "and that will pay my light bill that's due Monday."
Several workers said they were having difficulty finding work because companies in the Houston area have been reluctant to hire Enron workers. Many feared that speaking out would hurt job prospects or target them for retaliation.
"We're not here just for a handout," said Kathy Benedict, who can't afford the $300 a month to extend her health insurance benefits. "We need jobs."
Several workers said lawmakers should change federal bankruptcy laws to make workers and their retirement plans secured creditors that would be at the top of the list for available assets. Workers now come after secured creditors.
"Maybe it's too late for us, but there are other people out there," said Dennis Vegas. "This could happen to other Americans."

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

Former Enron Employee Warned Lay of Energy Contract Losses
2002-01-30 16:00 (New York)

     Washington, Jan. 30 (Bloomberg) -- A former Enron Corp. manager warned then-Chief Executive Kenneth Lay in August that the company was hiding at least $500 million in losses on energy contracts, adding to evidence that senior executives knew about the company's growing debt, U.S. lawmakers said.
     Enron Energy Services, the unit that advised businesses and property owners on energy use and operated heating, lighting and air conditioning equipment on their behalf, "had been doing deals for two years and was losing money on almost all the deals they booked,'' Margaret Ceconi, a former EES manager, wrote to Lay in an Aug. 29 e-mail. "They are trying to cover up their dumb decisions.''
     Representatives Billy Tauzin, chairman of the House commerce committee, and John Dingell, the panel's senior Democrat, included a copy of the e-mail in a letter to Lay asking him whether he responded to Ceconi and or discussed her allegations with Enron's accounting and legal departments.
     The commerce committee is one of 10 congressional panels investigating Enron's collapse. The Justice Department and the Securities and Exchange Commission also are looking into what led Enron, whose stock rose as high as $82 a share last year, to file the largest bankruptcy in U.S. history on Dec. 2. Lawmakers have predicted that changes in the law and criminal indictments would result from the probes.
     Ceconi's e-mail echoed one sent by Sherron Watkins, an Enron vice president, in mid-August to Lay. In that note, Watkins said that said former Chief Executive Officer Jeffrey Skilling had ignored warnings from other company executives about conflicts of interest in partnerships the company created to hide the size of its debt.
     "One can only surmise that the removal of Jeff Skilling was an action taken by the board to correct the wrong doings of the various management teams at Enron,'' Ceconi wrote.
     Skilling quit Enron last August and Lay returned to the job. Lay resigned last week as chief executive.
     One area investigators are looking into is whether executives of Enron, once the largest energy trader, misled shareholders and employees before it restated earnings in November.

-- Jeff Bliss and Russell Hubbard in Washington (202) 624-1975 or jbliss@bloomberg.net

Former Enron Employee Told Lay Earnings Misrepresented
By Bryan Lee

01/30/2002
Dow Jones Energy Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Kenneth Lay, the former chairman and chief executive at Enron Corp. (ENRNQ), received at least two warnings last August that questionable - and potentially illegal - accounting practices would become the company's financial undoing.
Both memos warned that skepticism and increasing scrutiny in the wake of the surprise resignation that month of Enron Chief Executive Jeffrey Skilling would bring the company's financial plight to light.
The first, now widely reported, came from Enron Vice President Sherron Watkins, and discussed the various off-the-books transactions the company had engaged in, which ultimately contributed to the company's financial undoing later in the year.
"I am incredibly nervous that we will implode in a wave of accounting scandals," Watkins wrote prophetically.
Now congressional investigators have released another memo, sent to Lay on Aug. 29 via e-mail, from a recently laid-off employee who worked in sales for nine months at Enron Energy Services.
Margaret Ceconi, who had been recruited from GE Capital (GE), asked her e-mail be forwarded to Enron's board, warning, "The house of cards (is) falling."
Democratic staff on the House Energy and Commerce Committee released the e-mail Wednesday, with Lay being scheduled to testify Monday before both the House Financial Services Committee and the Senate Commerce Committee.
Ceconi's e-mail goes into some detail about huge losses stemming from a number of retail electricity deals with commercial customers, and complains she was "fraudulently" recruited to the company.
The e-mail ticks off a number of money-losing deals, and warns of potential Securities and Exchange Commission violations for "knowingly misrepresent(ing) EES's earnings" by hiding the losses in Enron's profitable wholesale electricity business.
Ceconi warned the losses would add up to more than $500 million. "Rumor on the 7th floor is that it is closer to $1 billion," she wrote.
"But somehow EES, to everyone's amazement, reported earnings for the 2nd quarter," she continued, warning of accounting standards violations.
That EES misrepresented its earnings "is common knowledge among all the EES employees, and is actually joked about. But it should be taken seriously," Ceconi warned, citing industry analysts who "know what's going on, they just can't confirm it. YET."

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

Ex-Enron Employees Ask Democrats for Secured Creditor Status
2002-01-30 16:33 (New York)

     Washington, Jan. 30 (Bloomberg) -- Former Enron Corp. employees today asked lawmakers to give them the same status as secured creditors in the company's bankruptcy and a bailout like the one the ailing airline industry received after Sept. 11.
     "If I was a flood victim, the Red Cross would have been at my door the next morning,'' said Deborah Johnson, an ex-employee. "We want relief.''
     About a dozen former Enron staffers from Houston went to the Capitol to meet with House Democrats today on a trip sponsored by the AFL-CIO federation of labor unions and the Reverend Jesse Jackson, chairman of the Rainbow-PUSH Coalition.
     The fired employees said they were frustrated that retention bonuses were granted to executives days before Enron filed for bankruptcy, while they can't cash their $4,500 severance checks because that money is tied up in bankruptcy court.
     ``They got bounced $4,500 checks and executives get a sound $100 million check the day before,'' Jackson said.
     As unsecured creditors, many Enron employees will receive money they're owed by the company only after secured creditors are paid.
     Shareholders are suing Enron, once the world's No. 1 energy trader, claiming that the company and its accountants hid some $600 million in losses from investors, triggering the biggest bankruptcy in U.S. history.
     Representative Shelia Jackson Lee, a Democrat from Houston, called for hearings to examine bankruptcy laws during an informal meeting with the employees.
     "The bankruptcy court closed the door on your severance,'' said Jackson Lee, adding that House hearings would look into ways Enron could be forced to set aside money for employees before it continues its restructuring.

Not Forthcoming

     The employees also asked for legislation to give them the same status as secured creditors in the bankruptcy case and said they're seeking the same sort of bailout that lawmakers gave the ailing airline industry following Sept. 11.
     Many of the employees blamed Enron executives for not being forthcoming about the company's financial situation.
     "I've lost my job, I've lost the money I contributed to the 401k plan, and I had stock options I did not exercise,'' because company officials predicted the stock value would rise, said Monique VanVooren-Shankel, a former Enron employee. "It evaporated.''
     A handful of Texas Democrats at a press conference with House Minority Leader Richard Gephardt of Missouri and the fired workers vowed to push legislation that would give employees higher status in bankruptcy cases.
     "The current bankruptcy code doesn't provide secured creditor status for 401k participants, and that needs to change,'' said Representative Ken Bentsen. Bentsen's bill would place 401k plan participants at the top of the list of unsecured creditors in the event of a bankruptcy where the plan fiduciary misled investors.
     Bentsen and Jackson Lee, along with 43 percent of the rest of the House, received contributions from Enron.

-- Amy Strahan Butler in the Washington newsroom

USA: New Enron president no stranger to corporate storms.
By Dan Wilchins

01/30/2002
Reuters English News Service
(C) Reuters Limited 2002.

NEW YORK, Jan 29 (Reuters) - Jeff McMahon, promoted Tuesday to president and chief operating officer at scandal-wracked Enron Corp. , has a knack for finding himself in the middle of corporate maelstroms.
His ability to deal with trouble in a straight-shooting style was likely attractive to a company desperately needing some truth serum.
McMahon is said to have openly questioned some of the major off-balance sheet partnerships set up by Enron that contributed to the energy giant filing the largest bankruptcy in U.S. history in December.
As a company insider, he understands the inner workings of Enron's complex dealings. That asset could help Enron in its survival strategy. But it could also prove to be a liability, if inquiries about off-balance sheet structures raise concerns about McMahon's involvement.
The boyish-faced McMahon, a trained accountant known for his political savvy and strong sales ability, has held a number of senior roles at Enron, including executive vice president of finance and treasurer for Enron Corp., and president and chief executive officer of Enron Industrial Markets.
Enron isn't the first place in which McMahon, 41, has found himself at the center of a major corporate controversy.
A decade ago, he was a young internal auditor caught up in a case that gained almost as much notoriety as Enron, as trading losses at his former employer, the U.S. subsidiary of German industrial giant Metallgesellschaft AG, nearly bankrupted the parent company.
A HEDGE GONE AWRY
In the early 1990s, McMahon was an internal auditor at the U.S. unit of Metallgesellschaft, MG Corp., which eventually lost more than $1 billion from oil futures trading, making headlines throughout the world.
He wrote a series of internal audit reports critical of risk management and accounting procedures at the MG Corp. subsidiary responsible for the losses, MG Refining and Marketing, Inc. (MGR&M).
"(McMahon) was one of the heroes at MG Corp.," said Bob Bernstein, a lawyer at Kaye Scholer LLP in New York, who represents Metallgesellschaft, now known as mg Technologies .
Figuring out exactly what went wrong at MG Corp. is a cottage industry. The case is studied in business schools, and many former employees of the company and some academics insist that in the long-term, the MG trading strategy would have made money.
MG Corp. was caught out in a trading strategy that amounted to a huge bet on oil futures prices. When oil prices dropped in 1993, the futures positions hemorrhaged cash, threatening the collapse of the entire company.
"They were involved in giant speculation," said Jeff Parsons, an economist at Charles River Associates in Boston, who has studied MG Corp. The oil futures were meant to hedge longer-term supply contracts, but also provide a source of profit.
RAISING RED FLAGS
Internal audit reports obtained by Reuters indicate that McMahon's audit team was sounding alarms even before MG Corp. began hemorrhaging cash, and continued to do so as the problems persisted.
An audit of risk management procedures at MGR&M dated August 27, 1993, found that risk management "require(d) improvement," The amount of risk capital committed to the trading was "much larger than anticipated in the original business plan," according to the report.
Although the internal audit team was told that the Board of Directors had approved changes to the business plan, there was no formal written approval of the changes, the report continued.
"The lack of formal approval presents the risk that deviations from the approved plan occur, go undetected, and expose the Company to financial loss," McMahon's report said.
Management at the time ignored him, but after the losses were sustained, new management was brought in, saw McMahon's reports, considered additional evidence, and fired the architects of the strategy, Kaye Scholer's Bernstein said.
MG managed through the crisis and continued to operate, though with significant help from bankers in a major bailout operation.
A SIMILAR ROLE
At Enron, McMahon may have played a role similar to that at MG Corp.
According to a letter sent from Sherron Watkins, a vice president at Enron, to former Chairman Kenneth Lay, which was written after Enron CEO Jeffrey Skilling resigned in August, McMahon was highly concerned about the off-balance sheet LJM partnerships, a series of deals set up by Enron.
McMahon, then Enron's treasurer, demanded that five issues regarding LJM be addressed, if he was to remain in that position, Watkins said. Three days later, Skilling offered him the chief executive officer spot at Enron Industrial Markets, the letter said.
For his part, Skilling has said that McMahon did raise concerns - but his primary issue was the impact of LJM on his compensation, according to Judy Leon, a spokeswoman for Skilling in Washington, D.C.
OFF-BALANCE SHEET DEALS MAY PROVE NETTLESOME
McMahon reports to Stephen Cooper, who on Tuesday was named acting chief executive.
This joins Cooper, an outsider with a restructuring background, with McMahon, an insider not implicated directly in any wrongdoing. Still, McMahon was a senior financial official while a series of off-balance-sheet transactions were structured, and many of them had cross investments in one another, a banker who knows McMahon said.
McMahon has so far successfully avoided criticism for his involvement with off-balance sheet structures, the banker said. "But who knows if he'll get dragged into this?," he added.

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

Enron Energy Services To Surrender Illinois License
By Jon Kamp

01/30/2002
Dow Jones Energy Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

Of DOW JONES NEWSWIRES

CHICAGO -(Dow Jones)- Enron Energy Services is voluntarily giving up its certificate to serve commercial and industrial customers in Illinois, once a key growth area for the Enron Corp. (ENRNQ) unit, a spokeswoman confirmed Wednesday.
The Illinois Commerce Commission decided Tuesday to revoke the retail electric provider certificate held by Enron Energy Services, because its parent's debt rating is below investment grade. Though EES could fight the order, it doesn't plan to, spokeswoman Peggy Mahoney said.
"It became clear that we weren't going to be able to keep our license because of the debt rating," she said.
EES is now facing similar issues in other states, including Texas and California, where it has a particularly large presence, Mahoney said. While it is fighting to keep customers in other areas, the clear financial benchmarks required for suppliers in Illinois leave EES with few options, she said.
Mahoney was unable to list the number of customers EES had in Illinois, but the company was establishing a strong foothold in Chicago before it joined Enron in bankruptcy court in December. EES signed its first Chicago-area energy management deal with the Archdiocese of Chicago in 1998, then added other high-profile customers like the City of Chicago and PepsiCo Inc. (PEP) unit Quaker Oats Co., among many others.
EES had aggressive growth plans in the region. In an early October interview, before Enron's troubles became widely known, EES Chief Operating Officer Jeremy Blachman said Enron planned to build its share of the Chicago energy sales market to 8% to 10% from less than 1%. Chicago accounts for the lion's share of the $6 billion to $8 billion Illinois market.
Now, the company is quietly moving in the opposite direction, trimming its profile in Illinois. The City of Chicago, Quaker and the Archdiocese have all recently walked away from their contracts with EES. In early January, a New York bankruptcy judge approved Enron's request to terminate many other Chicago-area deals, Mahoney said.
Nationwide, EES received the power it needed to fulfill contracts from Enron's wholesale unit. Once Enron all but ceased power trading, EES was left to scramble for power from other suppliers. To date, it has managed to keep most of its 32,000 contracts while it tries to figure out how to restructure and maintain service, Mahoney said.
But EES wasn't actually supplying Illinois customers with power. Instead, it was serving primarily as a billing agent, helping its Illinois clients manage their power needs, Mahoney said. It's still unclear whether EES needs its state certificate to serve as a billing agent, ICC Commissioner Ruth Kretschmer said Tuesday.
Regardless, the company may not want to continue those operations, Mahoney said. EES was waiting for Illinois' young competitive retail market to mature before it signed actual deals to supply energy, using its billing-agent business to get its foot in the door.
"We were in the process of putting in place the ability for us to supply physically," Mahoney said. "We had thought that was imminent."
Now, Enron must decide whether it is still worth maintaining billing-agent and energy-management deals in Illinois when there is no possibility they will evolve into energy-supply contracts, Mahoney said. EES could also apply for a new supplier certificate in the future.
"That's exactly what we're reviewing right now," Mahoney said. "It's unclear what we will ultimately do in Illinois."
-By Jon Kamp, Dow Jones Newswires; 312-750-4129;
jon.kamp@dowjones.com

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

USA: UPDATE 1-Probe needed into Enron's California deals-FERC.
By Chris Baltimore

01/30/2002
Reuters English News Service
(C) Reuters Limited 2002.

WASHINGTON, Jan 30 (Reuters) - A member of the Federal Energy Regulatory Commission said Wednesday that the agency should investigate whether bankrupt Enron Corp. manipulated wholesale electricity prices in California.
Enron, accused by Western politicians of raising prices in long-term supply contracts following California's power crisis, has denied any wrongdoing.
"We need to clear up that lingering doubt," said FERC commissioner Nora Brownell, a Republican appointee to the agency last summer. "If there was market manipulation, we need to find it and we need to deal with it."
Brownell, speaking to reporters after a routine FERC meeting, made her comments after FERC Chairman Pat Wood testified on Tuesday before the Senate Energy Committee about Enron's impact on U.S. energy markets. Wood indicated during the hearing a willingness to open an agency investigation of Enron at the request of West Coast politicians.
Enron supported Brownell's appointment to FERC because she was a free market advocate while a member of the Pennsylvania public utilities commission.
The Houston-based company was among several independent power producers that enjoyed big increases in revenues early last year after Western spot market prices for wholesale power soared tenfold, to as high as $400 per megawatt hour.
The electricity crisis was linked to California's failed deregulation scheme that did not encourage new plant construction and barred the state's utilities from passing through higher wholesale prices to consumers.
The state eventually signed long-term supply contracts for some $42 billion worth of wholesale power supplies during coming years. Those contracts have been criticized by activist groups and some politicians as locking in prices well above market levels.
ALLEGED OVERCHARGES
Still pending before a FERC administrative judge is California's demand for some $9 billion in alleged overcharges by Enron and a dozen other wholesale suppliers. That case is unlikely to be determined for several more months.
Brownell was noncommittal on what action FERC should take if any market manipulation was found to have occurred with Enron's sales into California.
"I think there are tools we have to deal with the conclusion that someone manipulated the market," Brownell said. So far, there is no price data to show Enron did anything wrong, she said.
"We need to get to the underlying facts of the case," she added.
FERC has not officially opened an investigation yet but is expecting a formal request from Democratic Senators Dianne Feinstein of California and Maria Cantwell of Washington, an agency spokesman said.
Enron is accused of raising electricity prices in long-term supply contracts negotiated with the state of California following its power crisis.
Data presented at the Senate panel's Tuesday hearing by an independent power market analyst showed West Coast forward prices for wholesale power plunged by 30 percent on Dec. 3, the day after Enron declared the biggest bankruptcy in U.S. history.
Some Western senators said the data indicated Enron had inflated power prices before its bankruptcy. Sen. Ron Wyden, an Oregon Democrat, said he wanted to "lift the veil of secrecy" around Enron's wholesale power transactions in the West.

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

GAO to Sue White House for Energy Task Force Records

Wednesday, January 30, 2002
FOX News
WASHINGTON - In an unprecedented move, the General Accounting Office will sue the White House for access to Vice President Dick Cheney's energy task force records, Fox News has learned.
Unless the "GAO gets the information they want or is in good faith negotiations, we're headed for court" a GAO official told Fox News on Wednesday.
The official said that in recent GAO discussions with congressional investigators, it has been "clear the White House is telling their side of the story, significantly misrepresenting certain facts"
GAO officials were calling congressional leaders at the Capitol Wednesday morning to tell them of the decision. An official announcement explaining the GAO's reasoning was expected after noon.
It will be the first time in the GAO's 80-year existence that it has sued the executive branch. The process of filing the lawsuit in U.S. District Court in Washington is expected to take two to four weeks.
A decision had been expected from GAO Comptroller General David Walker, leader of Congress's investigative arm, all week. The GAO wants to force Cheney, who ran the task force, to turn over documents on the meetings held last year with business executives as the Bush administration crafted a new national energy policy.
Some of the meetings included officials from the now-collapsed Enron Corp., a Houston-based energy broker with deep ties to Bush.
Although lawyers for the White House and the agency had continued talks this week, Cheney said on Sunday that the dispute "probably will get resolved in court."
In resisting the GAO, Cheney insists that providing the list of industry executives would harm his ability to receive advice in the future, and that the congressional investigators are overstepping their bounds. The GAO, as a congressional agency, insists it has the authority to request the information.
Any GAO lawsuit would be highly controversial on Capitol Hill. The agency's investigation began after Democrats on April 19 requested that the GAO investigate the conduct, operations and funding of the Cheney energy task force.
On Tuesday, some Republicans had threatened to try to block the suit.
"I think it may come to that," said Sen. Orrin Hatch, R-Utah, the top Republican on the Senate Judiciary Committee.
Congress' investigative arm shouldn't be "trying to impose disclosure on internal White House meetings to determine policy," Hatch said. "If you have to do that, pretty soon there wouldn't be any meetings."
House Majority Leader Dick Armey, R-Texas, said he and House Speaker Dennis Hastert, R-Ill., planned to "talk to the agency."
Sen. Arlen Specter, R-Pa., said he was researching to see whether the GAO would be overstepping its authority by taking on the administration.
"My concerns are that it would encroach upon the deliberative process and make it impossible for the vice president at the direction of the president to make a recommendation," Specter said. "It's also a tricky area on executive privilege."
The San Francisco Chronicle reported Wednesday that then-Enron Chairman Kenneth Lay gave Cheney a three-page document last April detailing the energy trading company's arguments against price caps or other measures to stabilize electricity prices in California.
"Events in California and in other parts of the country demonstrated that the benefits of competition have yet to be realized and have not reached consumers," the memo said.
The newspaper said some of the positions included in the memo were included in Cheney's energy plan.
An Enron spokesman told the newspaper that Lay gave the memo to Cheney. Mary Matalin, an adviser to Cheney, said the energy plan included input from many sources.
On Tuesday, an energy consultant suggested to the Senate Energy and Natural Resources Committee that Enron may have been using largely secret trades to manipulate energy markets.
Robert McCullough, a consultant whose clients include several Northwest utilities, testified that in the week after Enron announced its bankruptcy, the "forward price" of electricity in the West fell sharply. Enron had been a key trader in this market, which is used as a hedge against future power price changes and is unregulated.
"That certainly raises the question about whether Enron was manipulating the West Coast market" by keeping prices artificially high, Sen. Ron Wyden, D-Ore., said in response to the consultant's testimony.
McCullough said "the clear implication is that Enron may have been using its market dominance to set forward prices."
Other energy experts said other reasons may have been behind the price decline. Lawrence Makovich, a power industry expert at Cambridge Energy Research Associates, said it would be impossible to determine simply from the decline in price whether prices were manipulated.
The Federal Energy Regulatory Commission told the Senate panel it would investigate Enron's influence on wholesale electricity prices.
The Associated Press contributed to this report.

White House Confirms Lay Memo But Hasn't Seen Lawsuit

01/30/2002
Dow Jones Energy Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

WASHINGTON (AP)--The White House said Wednesday it hadn't received notification of the lawsuit to be filed by the General Accounting Office, the investigative arm of Congress.
A congressional source said Wednesday that GAO has decided to sue the White House for access to documents from President George W. Bush's energy task force.
White House spokesman Ari Fleischer said, "The president will stand on principle and for the right of presidents and this president to receive candid advice without it being turned into a news release."
GAO officials were calling congressional leaders Wednesday to tell them of the decision. An official announcement was expected later in the day.
The White House also said Kenneth Lay, then chairman of Enron Corp. (ENRNQ), gave Vice President Dick Cheney a three-page document in April arguing for federal authorities to refrain from imposing price caps or other measures sought by California officials to stabilize electricity prices.
"Events in California and in other parts of the country demonstrated that the benefits of competition have yet to be realized and have not reached consumers," the memo said.
Cheney spokeswoman Mary Matalin dismissed the significance of the memo first reported by the San Francisco Chronicle. Nine of Lay's 11 suggestions weren't included in the White House energy plan - and the two that made the report were non-controversial, she said.
A decision had been expected all week from Comptroller General David Walker, GAO's chief. The GAO wants to force Cheney, who ran the energy task force, to turn over documents on the meetings held last year with business executives as the Bush administration crafted a national energy policy.
Some of the meetings included officials from the now-collapsed Enron, whose executives have had deep ties to Bush.

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

Enron collapse memo details Cheney-Enron links

01/30/2002
Associated Press Newswires
Copyright 2002. The Associated Press. All Rights Reserved.

SACRAMENTO (AP) - A memo outlining discussions between Enron officials and the White House reveals the extent to which the Houston energy giant lobbied to influence government policy, despite White House insistence that the details remain secret.
The memo was given by former Enron Chairman Ken Lay to Vice President Dick Cheney last April when the two met to discuss the administration's response to California's energy crisis, the San Francisco Chronicle reported Wednesday.
The White House said Tuesday that aspects of the memo resembled elements of Cheney's energy plan, but refused to say whether the document was included in notes that Cheney now refuses to divulge to congressional investigators.
The memo contains eight points spelling out Enron's case for why federal authorities should refrain from imposing price caps or other measures sought by California officials to stabilize runaway electricity prices.
The key point for California was whether soaring wholesale power prices should be limited or whether such prices were just a reflection of normal supply-and-demand dynamics.
The memo blames California officials for having made only "limited progress" in tackling the state's power woes.
Steve Maviglio, a spokesman for Gov. Gray Davis, said it was no surprise that Enron had a voice in the formation of the Bush administration's stance on California's difficulties.
"What the federal government did during the energy crisis was pretend that the problem didn't exist and say that the markets can solve everything, and that's the same thing Ken Lay told the governor," Maviglio told The Chronicle.

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

Judge Delays Ruling On Halting Enron Suits In Texas Crts
By Michael Rieke

01/30/2002
Dow Jones Energy Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

Of DOW JONES NEWSWIRES

HOUSTON -(Dow Jones)- A U.S. district court judge delayed ruling Wednesday on a motion to stop plaintiffs from filing lawsuits in Texas state courts against Arthur Andersen L.L.P.; some of its employees and former executives of Enron Corp. (ENRNQ).
Plaintiff and defense attorneys involved in federal class-action lawsuits in the Southern District of Texas related to the collapse of Enron argued against allowing such cases to proceed, saying they violated the spirit of federal law governing securities law and could interfere with their own suits.
Lawsuits have been filed in state courts in both Washington and Brazos counties in Texas on behalf of individual investors who lost money as a result of the collapse of Enron. Those suits name as defendants Andersen, four current Andersen employees, one former Andersen employee, and three former Enron executives.
The cases filed in state courts are intended to circumvent federal securities laws, said Bruce Collins, an attorney for former Enron Chairman and Chief Executive Ken Lay. Lay is a defendant in the suits filed in Washington and Brazos counties.
Federal law calls for such cases involving 50 or more plaintiffs to be removed to federal courts where similar cases have been filed, Collins said.
Although the suits filed in Washington and Brazos counties have fewer than 50 plaintiffs, they should be moved to federal courts, said Rusty Hardin, representing Andersen. Such suits are liable to be a recurring problem because, "There are 252 counties left" in Texas where such suits could be filed.

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

Enron collapse subjects British government, opposition to accusations
By ROBERT BARR
Associated Press Writer

01/30/2002
Associated Press Newswires
Copyright 2002. The Associated Press. All Rights Reserved.

LONDON (AP) - Enron's collapse has cast a shadow over Downing Street, with Prime Minister Tony Blair under pressure to explain how Enron won favorable government decisions after giving financial support to the Labor Party. Questions also are being raised about Labor's relationship with Arthur Andersen, Enron's auditors.
Opposition Conservatives are seeking to capitalize. But they also accepted Enron's support, and Enron's board included John Wakeham, a well-connected senior figure in past Conservative governments who now may face questioning about the company's collapse.
"What you have here is thousands of words, very little story," Blair's official spokesman told reporters Wednesday, speaking on condition of anonymity.
The Labor Party has confirmed that Enron gave the equivalent of 36,000 pounds (dlrs 50,760) between 1997 and 2000 - at a time when Enron was pressing the government to lift a moratorium on new gas-fired power generating plants.
The moratorium stopped Enron's plans for a 1,200-megawatt station in southeastern England. By the time the moratorium was lifted in November 2000, gas prices had doubled and Enron did not pursue the project.
Opposition critics note that Enron spent 15,000 pounds (dlrs 21,000) to host a reception at the Labor party conference in 1998, shortly after the government approved Enron's takeover of Wessex water, which supplies domestic water and sewer service in southwestern England.
Ralph Hodge, former chairman of Enron Europe, said he had advised the company to sponsor events in conjunction with political parties rather than make direct donations.
"Meetings were held with ministers and officials on a number of occasions before and after Enron sponsored events at party conferences and conventions. I am certain that these meetings would have taken place irrespective of any sponsorships," Hodge said.
Opposition Liberal Democrat Matthew Tayler has sharply questioned Enron's courting of the Blair government.
"We know that in the United States Enron used extensive political contacts to seek to further its interests, and there is good evidence of the same happening here in the UK," Taylor said.
"Taking on former Labor employees to lobby for a change in gas policy and bingo, gas policy changes; paying for tables at the Labor Party conference and seeking direct contact at the time of the takeover of Wessex Water and bingo, that is approved."
But the Labor Party's general secretary, David Triesman, scoffed at such charges in a television interview this week.
"The idea that a government switches its policy on energy a week after having a gala dinner is really among the more absurd claims I've heard in my political life," Triesman said.
On Tuesday, Blair's office released details of seven meetings between ministers and Enron executives between April 1988, when Enron chief executive Kenneth Lay met then-Industry Minister John Battle, and October 2000.
The Department of Trade and Industry said it did not keep records of who initiated each of the meetings.
Enron's outlay for political contacts - including some 25,000 pounds (dlrs 35,000) to the Conservative Party - pale in comparison to political contributions of dlrs 5.77 million in the United States in the last 12 years.
The opposition apparently doesn't yet sense a major opportunity to attack Blair over Enron.
During the prime minister's question session in Parliament on Wednesday, Conservative leader Iain Duncan Smith decided instead to probe Blair about problems in the National Health Service and the Labor Party's financial support from a union that is currently disrupting rail service with a series of 48-hour strikes.
A decade ago, Enron successfully lobbied Margaret Thatcher's Conservative government for permission to build one of the first gas-fired electric generating plants in Britain.
The minister who approved that project, John Wakeham, joined Enron's board as a non-executive director in 1994 - and now finds himself under fire.
Nick Harvey, a Liberal Democrat lawmaker, has called for Wakeham to give up one of his most prominent jobs: chairman of the Press Complaints Commission, a politically sensitive post in which he has dealt with complaints from people aggrieved by newspapers, including Blair and the royal family.
Wakeham has not responded.
Conservatives also have questioned Labor's relationship with Arthur Andersen, which was banned from doing business with the government because of its association with the De Lorean sports car venture in Northern Ireland. The company went bankrupt in 1982 after its founder, John de Lorean, was arrested in California on drug charges.
Successive Conservative governments barred contracts with Andersen and sought to reclaim 200 million pounds (dlrs 280 million at current rates) in compensation.
Shortly after Blair won power in 1997, the government settled the case for 21 million pounds (dlrs 25.8 million).
Energy Minister Brian Wilson said former Conservative Prime Minister John Major's government set up the machinery which led to the decision to reinstate Andersen.
John Morris, now Lord Morris, Blair's attorney general from 1997 to 1999, said he made the decision to settle "entirely on legal advice."
"The advice from departmental lawyers was that the sooner the better the litigation ... should be brought to an end," he told British Broadcasting Corp. radio.
Conservative Party vice-chairman Tim Collins complained that the decision was entirely made by Blair's government.
"It was the Labor Party that decided to settle for only 10 percent of the money the taxpayer was, in our view, owed."

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

Bank of America Fires Two Bankers Who Handled Enron
2002-01-30 14:40 (New York)

     New York, Jan. 30 (Bloomberg) -- Bank of America Corp. fired two employees who managed the firm's business with Enron Corp. after the third-biggest bank lost $231 million when the energy trader filed for bankruptcy, people familiar with the matter said.
     The bank dismissed Jo Tamalis, the client manager for Enron, and Marcia Bateman, who oversaw loans to the energy firm, the people said. Tamalis said she no longer worked for the bank and declined to say why. Bateman couldn't be reached. Bank of America spokeswoman Georgie Shields declined to comment.
     Bank of America is the first bank to fire executives because of Enron's collapse. Other financial firms from J.P. Morgan Chase & Co. to Citigroup Inc., which wrote off more than $2.7 billion in the fourth quarter because of Enron and Argentina's debt default, may take similar steps, investors say.
     "If you assume they were responsible, you as an investor like to see people held accountable,'' said Phil Larkins, market strategist for Legacy South Inc., which manages $400 million in assets and owns 200,000 Bank of America shares. ``Bank of America has a very large exposure to Enron.''
     The Bank of America firings are some of the ripple effects in the financial services industry from Enron's collapse. Congressional investigators are demanding names of investors in limited partnerships Enron used to inflate earnings and hide debt from shareholders. Merrill Lynch & Co. executives invested in one of the partnerships, which also drew money from Citigroup, American International Group Inc. and other firms.

Bondholders

     Money managers including Putnam Investments, the fourth largest U.S. mutual fund company, Federated Investors Inc. and Dreyfus Corp. bought bonds issued by Enron trusts, according to regulatory filings. Northern Trust Corp., the trustee for Enron's retirement plan, owned the bonds, and also said this month it held more than $24.5 million in unsecured Enron debt.
     Bank of America was one of the biggest lenders to Enron as part of a $3 billion credit facility that was arranged by J.P. Morgan and Citigroup.
     Bank of America shares gained 1.37 to $60.56.
     "Bankers have made a lot of bad judgment calls regarding Enron,'' said Carl Domino, president of Northern Trust Value Investors, which holds Bank of America shares.
     Tamalis, reached at her home in Houston, declined to comment. "I don't want to give an interview,'' she said.
     The largest bankruptcy helped push J.P. Morgan and FleetBoston Financial Corp. into their first quarterly losses in years. J.P. Morgan Chase wrote off $456 million of trading losses and loans to Enron and still has exposure to potential losses of $2.06 billion. Bank of America said this month loans and other business with Enron cost the company $231 million.
     For Bank of America, the losses on loans to Enron came after a string of bad loans hurt the firm's earnings. The bank wrote off a total of $1.19 billion of bad loans in the fourth quarter, up 11 percent from a year earlier.
     ``Enron may well have been the straw that broke the camel's back,'' Domino said.
     Congress will be looking into the role of Enron's financiers, especially those in the limited partnerships, in hiding debt from investors, said Representative Henry Waxman, a California
Democrat.
     ``This needs to be thoroughly investigated,'' he said. ``One of the big mysteries about Enron is who the secret partners were, what they knew about Enron's precarious financial situation, and whether they did anything wrong.''

Other Cuts

     Bank of America said last year it planned to cut 600 jobs in corporate and investment banking to help reduce costs. As part of those cuts, the bank is firing three loan syndication executives who worked in project finance: Parker Knight, managing director and head of international syndicated finance, Brian Goldstein, head of U.S. project finance syndications, and John O'Neill, head of Asian project finance.
     Their jobs are being cut as part of Bank of America's restructuring of its global corporate and investment bank, said William Hodges, the bank's head of debt capital markets.
    ``The impact on these three individuals leaving the company is not related to Enron in any way,'' Hodges said.
    The bank is scaling back lending for capital projects, such as refineries and generation plants, in the U.S. and Asian energy and power industries, Hodges said. That type of lending ties up capital, and Bank of America isn't willing to continue doing it unless borrowers agree to give the bank more lucrative business as well.
    "It entails risk factors that are less than highly desirable,'' Hodges said.
     Loan syndication employees in Latin America and Asia who previously reported to Knight now report to executives in those regions. ``In Latin America and Asia, we now have a regional model,'' Hodges said. "The head of the region is now responsible for all of our client coverage and business development.''
     Hodges said Bank of America is ceasing, on a stand-alone basis, traditional project finance in the U.S., a unit headed by Goldstein, and in Asia, a unit headed by O'Neill.

--Mark Lake in the New York newsroom (212) 893-5989, or mlake1@bloomberg.net, and Chris Burritt in Charlotte (704) 331-6589. Editor: Serafino, *Quinson/ *Merz

Lawmakers Fear 'Loopholes' In Electricity Deregulation Bill

01/30/2002
Dow Jones Energy Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- Mutual fund investors could be stung by future Enron-type collapses if Congress adopts an electricity bill with "potentially dangerous loopholes," some House Democrats warned Wednesday.
In a Jan. 30, letter to Securities and Exchange Commission Chairman Harvey Pitt, Rep. John Dingell, D-Mich., and Edward Markey, D-Mass., said they fear fund investors could be stung by loopholes in the bill, HR 3406.
The bill, sponsored by Rep. Joe Barton, R-Texas, would deregulate markets for electric power.
A section of the bill would "grandfather" existing holding companies, allowing them to avoid rules governing mutual funds. Dingell and Markey said they are "extremely wary" of that, fearing it might allow grandfathered utility holding companies to spinoff firms that wouldn't be subject to the same rules as other mutual funds.
"They could therefore engage in some of the risky and speculative investment strategies pursued by hedge funds," exposing investors to enormous risks, the lawmakers wrote.
A House subcommittee may act on the bill as early as next month. Given that, Democratic lawmakers asked the SEC to analyze the bill, including the proposal to grandfather holding companies in existence at the end of 2001.
In a related area, lawmakers asked the SEC to provide information on a 1997 SEC staff decision to exempt Enron from being regulated as a mutual fund.
Among other things, the Democrats asked whether "some of the potentially fraudulent actions subsequently undertaken by Enron might have been prevented" if it had been subject to mutual fund rules.
-By Judith Burns, Dow Jones Newswires, 202-862-6692; judith.burns@dowjones.com

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

Shareholder Files State Lawsuit Against Enron Execs
By Erwin Seba

01/30/2002
Dow Jones Energy Service
(Copyright (c) 2002, Dow Jones & Company, Inc.)

Of DOW JONES NEWSWIRES

HOUSTON -(Dow Jones)- An Enron Corp. (ENRNQ) shareholder filed a class action lawsuit Friday in state court in Houston against Enron's current and former executives and directors.
Henry P. Blaskie, Jr., of Columbus, Ohio, is also suing Enron's former auditor Arthur Andersen LLP.
Among the defendants, the suit names "the estate of J. Clifford Baxter."
Baxter, a former Enron vice chairman, was found dead in his car early Friday morning by Sugar Land, Texas, police. Police said Baxter suffered a self-inflicted gunshot wound to the head and have described his death as an apparent suicide.
The suit was filed late Friday afternoon in Harris County District Court.
Former Chairman Kenneth Lay, former Chief Executive Jeffrey Skilling and former Chief Financial Officer Andrew Fastow were also named in the suit.
Blaskie alleges the executives and directors "breached their fiduciary duty" by releasing misleading financial statements which encouraged shareholders to continue ownership of Enron stock.
Blaskie also alleges Andersen aided in the breach of fiduciary duty by certifying the company's financial statements.
Blaskie is represented by Houston Attorney John Emerson. Blaskie is suing on behalf of himself and all those people who bought Enron stock before Oct. 16, 1998, and held the stock through Oct. 16, 2001.
Blaskie owned 700 shares of Enron common stock.
Attorneys for the defendants were unavailable for comment Wednesday afternoon.
-By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com

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

USA: Ex-Enron executive Baxter euologized for successes.
By Nicole Volpe

01/30/2002
Reuters English News Service
(C) Reuters Limited 2002.

AMITYVILLE, New York, Jan 30 (Reuters) - Family and friends of J. Clifford Baxter, the 43-year-old former Enron vice chairman who died of an apparent suicide last week, gathered on Wednesday to recall a life they said should not be eclipsed by the way it ended or by scandal at the company he led for seven months.
"The shame is that the whole world is going to know him as the vice chairman of this big company where things went crazy," said John Bochicchio, a friend who graduated with Baxter from Amityville High School. "We knew him here in Amitvyille growing up as a great guy, playing ball and climbing trees. It's a very sad day."
The Houston-based energy trading company's murky accounting practices led to its December spiral into the largest U.S. bankruptcy in history.
Baxter, who complained about questionable financial deals at Enron before resigning in May, seven months after being promoted to vice chairman, was found dead of a gunshot to the head near his suburban Houston home last Friday.
Baxter's death came a day after the start of congressional hearings in Washington on Enron's collapse.
He resigned for what the company said was a desire to spend more time with his family in the Houston suburb of Sugar Land. But an August memo from an Enron whistleblower indicated Baxter had feuded with the then-chief executive about methods the company was using to hide billions of dollars in debt.
About 150 of Baxter's family and friends filled the St. Martin of Tours Church in this small Long Island town. One of his 35 cousins, Steven Garry, gave the eulogy.
"It is for them and for us an unimaginable day," he said.
"We will always remember what a decent, hard-working, upstanding person he was, not a bad bone in his body," said Garry. "He always knew the right thing to say, he was always there, he was the go-to guy."
Large groups of reporters gathered in front of the church, filming the family as church bells tolled at the end of the service. Baxter is survived by a wife and two children.
Baxter was a defendant in lawsuits targeting Enron's top executives, accusing them of cashing in on insider information.

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

Sarah Palmer
Internal Communications Manager
Enron Public Relations
(713) 853-9843


Greg,

Dale Nesbitt is a consultant who develops pricing models (spot and fwd)
prices for E-commerce sites. He will be in Houston in the beginning of July.
Any interest in meeting him?

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 06/28/2000
05:24 PM ---------------------------

VKaminski@aol.com on 06/11/2000 03:17:23 PM
To: vkamins@enron.com
cc:
Subject: Dale Nesbitt

o:   <Vince.J.Kaminski@enron.com>
cc:
Subject:  RE: Follow up

Vince:

Thanks for your help in this matter.  I dont want to be a bother to you.  I
know you are doing your best to put this together as a go between.

As you might suspect, I am in a hurry to put together the right hearing at
Enron because MarketPoint is just now being completed--U.S. and world oil
and gas and North American electricity.  We have just signed up our first
web provider (e-Acumen.com), who is preparing to vend our North American
electric generation data base over their website.  I believe we are an
integral part of their offering.  It wont be long before MarketPoint needs
the capitalization to meet our growing customer needs professionally and
quickly, particularly when we sign up one or more vertical portals to vend
or offer fundamental forward projections from our models.  I a loath to do
so without the capitalization and staffing we need.  Also, I am loath to do
so without the market reach that a partner like Enron could render instantly
available.

I also would be eager during my next trip to Houston to continue the
discussion with you regarding how MarketPoint might benefit Enron directly.
I plan to be there the last week in June.

Thanks again for all your help and support.

Dale


Steve:

Information on the Financial Sector's ISAC.  Key question is will we qualify
for membership - see para 3.
If we qualify as a "designated financial services exchange and finance sector
utilities" this ISAC will work for us.
If not, I recommend we join the Oil & Natural gas ISAC.  I will forward
information on NERC's process shortly - Pete

 Frequently Asked Questions

 WHO OWNS THE FS/ISAC?
 The FS/ISAC and the data in the FS/ISAC is owned by the members through the
FS/ISAC, LLC
 (Limited Liability Corporation) created to manage the ISAC process for
Financial Services. The
 FS/ISAC is operated by Global Integrity Corporation, a wholly owned
subsidiary of SAIC.

 WHO ARE GLOBAL INTEGRITY AND SAIC? (Global Integrity is now owned by
Predictive SYstems Inc.)
 Global Integrity is an information security service provider to commercial
clients around the world. It
 provides a full complement of information protection, electronic commerce
security, consulting, and
 engineering services worldwide. Global Integrity Corporation is a wholly
owned subsidiary of SAIC
 (Science Application International Corporation), the largest employee owned
research and engineering
 company in the US. Since 1969, SAIC scientist and engineers have worked to
solve complex technical
 problems in the healthcare, telecommunications, national security, financial
services, transportation,
 energy, and the environment. With annual revenues approaching $5 billion,
SAIC and its subsidiaries
 have more than 38,000 employees in 150 cities worldwide.

 WHAT ARE THE MEMBERSHIP REQUIREMENTS?
 Membership is open to the following categories of US entities registered,
and in good standing, with
 their appropriate regulators:

      FDIC Insured Bank
      NASD Licensed investment firm
      Designated Financial Services exchanges and finance sector utilities
      Specialized US or State licensed banking companies
      US or State Licensed Insurance companies

Membership will be granted to an applicant only after third-party
verification is completed by the
 FS/ISAC, LLC.

 WHO HAVE ACCESS TO THE FS/ISAC?
 Financial Services companies who become members of the FS/ISAC, LLC.

 WHO ARE THE CURRENT MEMBERS?
 Anonymity of members is key to obtaining industry-wide cooperation. The
member list of the FS/ISAC
 has not and will not be released to anyone. Membership is strictly confined
to eligible financial service
 applicants as defined by the FS/ISAC, LLC Board of Managers.

 HOW DOES MY COMPANY BECOME A MEMBER?
 Accessing all materials to become a member is easy. The enrollment process,
procedures,
 membership agreement, and eligibility form may be obtained from the FS/ISAC,
s web site,
 www.fsisac.com, or by calling our offices at (888) 660-0134.

 HOW MUCH DOES IT COST TO JOIN THE FS/ISAC?
 Membership fees range from $13,000 to $125,000 depending on the membership
level selected.

 HOW DOES THE FS/ISAC WORK?
 For the first time, information security professionals may anonymously share
in an industry wide
 database of electronic security threats, vulnerabilities, incidents and
solutions. Members voluntarily will
 report information to the database on either an anonymous or attributed
basis. Input will be analyzed
 by security specialists for potential solutions and, depending on the
seriousness of the case, the
 FS/ISAC will distribute an alert to members.

 WHAT IS THE VALUE PROPOSITION TO MY COMPANY?
 There are a number of value added features for each member:

      Early Notification
      Relevant Information
      Industry-wide Vigilance
      Subject Matter Expertise
      Anonymous Information Sharing
      Trending, Metrics, Benchmark Data

 HOW SECURE IS THE FS/ISAC FACILITY?
 The location or locations of the FS/ISAC are secret. The FS/ISAC is
physically secured and the facility
 is operated remotely. The various components of the FS/ISAC system are
protected through
 state-of-the-art security techniques, including constant monitoring for
unauthorized attempts to access
 or alter the system.

 HOW MANY INCIDENTS, THREATS, VULNERABILITIES AND SOLUTIONS ARE CURRENTLY IN
 THE FS/ISAC DATABASE?
 Information in the database comes from FS/ISAC members, US Government
agencies, hardware and
 software vendors, and other sources. While the exact number of incidents
submitted is confidential,
 there have been over 820 entries related to general threats, vulnerabilities
and solutions impacting the
 critical information infrastructure at large.

 DOES THE US GOVERNMENT HAVE ACCESS TO FS/ISAC REPORTS?
 No. US Government agencies, such as NIPC, submit information but cannot
access data.

 HOW IS THE FS/ISAC FUNDED?
 The FS/ISAC is a private-sector partnership of FS/ISAC, LLC members.
Membership fees are the sole
 source of funding. Global Integrity provided the start-up funding.

 HOW MANY INCIDENTS WILL BE REPORTED?
 Since Banking and Finance is the first sector to establish an ISAC, there
are no historical data from
 which to derive traffic statistics. For the first time, financial services
companies can share incident
 information via the FS/ ISAC. Some members may choose to share data with
attributions. Many are
 likely to submit data with complete anonymity. Over time, it is expected the
database will be
 extensive.

 HOW WILL THE FS/ISAC DATA BE USED?
 The FS/ISAC data will be used to share incident information among members in
near-time. The data
 will also be used to develop trending and benchmarking information for the
benefit of the members.

 WOULD THE FS/ISAC PREVENT A VIRUS LIKE MELISSA OR WORM.EXPLOREZIP?
 No, it would not prevent a virus or deliberate hacker attack from happening.
It would, however, give
 members an alert or early warning notice and offer known patches or solution
recommendations. It
 would enable members to respond quickly to avoid or limit potential damage.

 WHAT IS THE DOWNSIDE RISK OF NOT JOINING THE FS/ISAC?
 You would not avoid the expense or loss of reputation of an unexpected
incident or attack about which
 the FS/ ISAC would have warned you. You would not have access to the
near-time database or expert
 analysis that is available to members.

 For more Information, visit the FS/ISAC,s web site: www.fsisac.com or call:
(888) 660-0134
 ISAC-FAQ031000


There are four deals on the no report that look like they sould be
confirmed.  Can you take a look at them and check to see why they are coded
not to be confirmed?

#533919
#533931
#533932
#533934

I guess you have seen the email that shows what your computer looks like when
you work in (or apparently near) California?  You open it and the screen
starts moving around.

Stay well!


----- Forwarded by Steven J Kean/NA/Enron on 11/28/2000 11:05 AM -----

	Karen Denne
	11/27/2000 04:33 PM

		 To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Jeff
Dasovich/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Sandra
McCubbin/NA/Enron@Enron, Mona L Petrochko/NA/Enron@Enron, Mark
Palmer/Corp/Enron@ENRON, Peggy Mahoney/HOU/EES@EES
		 cc:
		 Subject: Duke Energy proposes to manage SDG&E's entire electricity load for
five years

fyi...
---------------------- Forwarded by Karen Denne/Corp/Enron on 11/27/2000
03:58 PM ---------------------------

tcwillia@duke-energy.com on 11/27/2000 02:23:42 PM
To: "Andy Brown (IEP)" <runwithmee@aol.com>, Bob Escalante at Constellation
<Bob.escalante@powersrc.com>, Curtis Keebler at Reliant
<curtis_l_kebler@reliantenergy.com>, Greg Blue <gtbl@dynegy.com>, "Jack
Pigott @ Calpine" <jackp@calpine.com>, Jan Smutny-Jones <smutny@iepa.com>,
"Joe Ronan @ Calpine" <joer@calpine.com>, John Stout for Reliant
<john_h_stout@reliantenergy.com>, "Julie @ Edson" <jmball@ns.net>, "Karen
Denne, Enron" <kdenne@enron.com>, Karen Edson <kedson@ns.net>, "Kassandra
Gough @ Calpine" <kgough@calpine.com>, Katie at IEP <kaplan@iepa.com>, Lynn
Lednicky at Dynegy <lale@dynegy.com>, Marty Wilson <mwilson@pstrategies.com>,
Paula Hall-Collins <paula.hall-collins@williams.com>, "Richard Hyde, Duke"
<rwhyde@duke-energy.com>, Rob Lamkin <rllamkin@seiworldwide.com>, Roger
Pelote <roger.pelote@williams.com>, Stephanie Newell at Reliant
<stephanie-newell@reliantenergy.com>, Steven Kelly <steven@iepa.com>
cc:

Subject: Duke Energy proposes to manage SDG&E's entire electricity load for
five years

The note below was sent to the 20 or so reporters that I have been working
with on the CA electricity crisis.

FYI.

Below is a press release we distributed today that details a proposal we
have made to San Diego Gas & Electric to manage their entire electricity
load (up to 3,300 megawatts) for five years at a fixed price of $60 a
megawatt hour.  The proposal was detailed in our comments to the Federal
Energy Regulatory Commission on their recent proposed solutions to
Caifornia.

As the release indicates, forward contracting for electricity is a very
effective way for the state's utilities to manage the volitility in the
state's electricity markets.  With natural gas prices more than doubling
since last year and last week being up to seven times higher than last year
on the spot market (up to $19 a million BTU vs. an average of about $2.50
in 1999), we feel that its imperative for utilities to take advantage of
these contracts so they can manage their own risk  exposure and their
customer's risk exposue to this volitility and the associated high prices.
(The price of natural gas represents about 90 percent of our plant's
operating costs).

We signed a forward power contract with PG&E Oct. 30 and Southern Cal
Edison Nov. 15 (announced for the first time in the this release).  The
Federal Energy Regulatory Commission strongly encourages these kind of
contracts -- and we hope that we, or other wholesale power marketers, can
do more of this kind of business with these utilities and SDG&E in the very
near future to bring stability to the state's wholesale electricity market.

Our proposal is detailed on pages eight and nine in the FERC filing, which
also includes our other positions on the California electricity crisis.
These are also detailed on our CA web site at
www.Duke-Energy.com/California.

For more information, call me at 805-595-4270 or page me at 877-364-5170.

(See attached file: Nov 27 release.doc)(See attached file: Duke Nov. 22
FERC filing.doc)
 - Nov 27 release.doc
 - Duke Nov. 22 FERC filing.doc


I didn't have this email when I left yesterday.

---------------------- Forwarded by Chris Germany/HOU/ECT on 02/23/2000 08:01
AM ---------------------------

"Immer, Ingrid" <Ingrid.Immer@Williams.com> on 02/22/2000 04:09:06 PM
To: Chris Germany/HOU/ECT@ECT, Judy Townsend/HOU/ECT@ECT
cc:
Subject: Enron Name Change

Chris and Judy,
Please pass on to any of your folks who need to know that we've completed
the name change from Enron Cap & Trade to Enron North America.  Your new
business party number is 7973.
Let me know if any problems arise.  Thanks.   ii


---------------------- Forwarded by Patrice L Mims/HOU/ECT on 04/03/2001
03:13 PM ---------------------------

"Bruce Kohrs" <Bruce_Kohrs@keyspancanada.com> on 04/03/2001 01:06:43 PM
To: dan.j.hyvl@enron.com, <patrice.l.mims@enron.com>
cc: hunters.shively@enron.com, grant.oh@enron.com,
Brian_Houghton/CRESTAR1/Crestar_Energy%Exchange
<Brian_Houghton@keyspancanada.com>,
Michael_Kleiner/CRESTAR1/Crestar_Energy%Exchange
<Michael_Kleiner@keyspancanada.com>, "Jim Pearson"
<Jim_Pearson@keyspancanada.com>, williakh@bp.com
Subject: Crestar AOS assignment to BP

Dan, Grant Oh suggested I e-mail you directly to notify you of a change
that BP needs included. BP states they need to have the volumes/contract
number information back from Enron via e-mail by 9:45am MST in order to
place nominations by 10:30am MST for the Timely Cycle. If for whatever
reason Enron cannot provide the volume/contract number information by
9:45am or Enron fails to take the scheduled volume agreed to at 9:00am; and
BP incurs any penalty costs including the price difference between the
Enron price and the replacement price, then Enron should be liable for
these costs NOT Gulf. I suggest the following options:

1) Put back in the default contract number in the Enron/Crestar agreement
as we had last week, this way if Enron fails to notify by 9:45am, then
Crestar/BP can nominate to the default contract number and Enron can change
the contract numbers internally.
2) Add a clause to either the Enron agreement or the Gulf assignment
agreement to state if Enron fails to inform and/or take, then any penalty
costs/price difference incurred by Crestar/BP shall be passed onto Enron.

Please advise what Enron's position is and how we should proceed.
------

Bruce Kohrs
Phone: (403)205-7684
Fax: (403)266-1947
e-mail:bruce_kohrs@keyspancanada.com


Hola,

If all recipients would please be soooo kind as to respond back with a home
mailing address....except for suebob and jojo..got your's already.

Well, we I made it safely to UT.  We made the drive in about 2 days getting
to Provo the 2nd evening and Park City the following morning.  Now I am
reminded why they always say that it is much safer to fly than to drive
cross country.  The first day we NARROWLY avoided running out of gas in
NOWHERE texas...and I also got a speeding warning from a state trooper.  The
2nd day of driving across UT on a two-land highway from Moab to Provo was
harsh...it was snowing..i had a deathgrip on the steering wheel while
oncoming cars blinded me with their headlights and john slept.  Those are
just the bad parts but it was well worth the time hanging with John and
seeing the country.

I've met my 3 roomates, Jimmy, James & Thomas... and they seem normal and to
John's delight none of them will be gracing a "Gorgeous Hunks of Park City
Utah" calendar anytime soon.  It has been snowing almost non-stop since I've
been here...and it seems that everyone is off to ski or board here in town.
I'm trying my best to hold off until the end of the week when all of my
skiing and boarding activities will be free.  I am scheduled to start this
thurs at the bakery.  I'm considering picking up another part time job just
to keep things interesting, but I'm going to see how things go with a 40hr
schedule first.

I hope everyone is doing well.  I just wanted to say hello and most
importantly get everyones home address. So take care all and I'll be in
touch.

Sno-mo

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


Where are these meters?  What is happening?  What have we done in the past?

D

   Aimee Lannou                02/16/2000 02:58 PM

To: Daren J Farmer/HOU/ECT@ECT
cc: Fred Boas/HOU/ECT@ECT, George Grant
Subject: Re: Allocation Exceptions

Daren - Meters 3002 and 3003 have volume from Jan 99 thru the current month.
Could a deal be created for these volumes? There is a substanital amount of
volume each month.

- Aimee
---------------------- Forwarded by Aimee Lannou/HOU/ECT on 02/16/2000 02:54
PM ---------------------------

Fred Boas
02/13/2000 02:28 PM
To: Aimee Lannou/HOU/ECT@ECT
cc: Robert E Lloyd/HOU/ECT@ECT, Howard B Camp/HOU/ECT@ECT
Subject: Allocation Exceptions

Aimee:

Following is a list of allocation exceptions on Daily Swing meters that must
be fixed.
Meter 3003 with Min Gas Date 01/02/99
Meter 3002 with Min Gas Date 01/02/99
Meter 0598 with Min Gas Date 08/01/99
Meter 5360 with Min Gas Date 0/01/00

Do you think that we can get them fixed by Tuesday the 15th of this week?

Let me know,

Fred


-----Original Message-----
From: 	Lebeau, Randy
Sent:	Thursday, February 14, 2002 10:52 AM
To:	Adamson, Alvin; Barbee, Roger; Beaver-Mach-Shop, Team; Beaver-Plant, Team; Blair, Lynn; Bonnstetter, Mike; Boothe, David; Bowers, Dawson; Brasier, Cliff; Brassfield, Morris; Brickman, Ronnie; Brickman, Susan; Brown, Andrew; Brown, Ricky; Canadian-North, Team; Cantrell, Kevin; Carbajal, David; Caskey, Joe; Clark, Scott; Clements, David; Coen, Jim; Dooling, Ralph; Eaves, Lynn; Elk-City, Team; Elliot, Frank; Ellis2, Team; Fletcher, Frankie; Ford, John; Foresman, Bill; Fusilier, Warren; Gallishaw, Melinda; Golden, David; Goss, Mark; Griffith, Vance; Gross, John; Hall, Dennis; Hamlin, Jeff; Hammer, Doug; Hammond, Brinson; Harkreader, Jerry ; Heitman, Dick; Herber, Stephen; Hostetler, Danny; Howard, Randy; Huff, Randy; Jackson, Melvin; January, Steve; Johnson Jr, Richard; Jolly, Rich; Jones, Paul; Jordan, Fred; Kerby, Bryce; Kirkhart, Roger; Ladish, Kim; Lane, Larry; Lewis, Kelly; Loveless, Rick; Lowe, Mickey; Lynch, Jim; Marshall, Bill; McCarran, Penny; McDaniels, Bud; McMillan, Dan; Morris, Richard; Mullen, William; Nollner, Marlane; Odneal, Dave; Pampa, Team; Pampa-Overhaul, Team; Pape, Gragg; Perkins, Brent; Perryton, Team; Pool, Deelyn; Pool, Eddie; Poole, Susan; Pope, Mike; Poston, Tom; Pribble, Dan; Reed, Steve; Rice, Randy; Rich, Stephen; Richie, Randy; Roberts, Dale; Sanders, James; Sanford, Robert; Scott, Ronald; Sides, Mark; Smith, Jimmie; Spearman, Team; Spraggins, Gary; Stage, Michael G.; Stark, John; Stephens, LD; Sunray-Compressor, Team; Sunray-Field, Team; Trout, Lonnie; Urban, Larry; Whorton, Tim; Wichert, John; Williams, Sammy; Williams, Walt; Woolley, Joey; Young, Kenneth
Subject:	Amarillo Weekly Report

For the week of February 11


Tanya and Bob:
When we last met to talk about Repap I think that we decided to wait until
quarter end before approachning them again.  Are we inclined to do anything
at this point?
Carol


You must have put a lot of thought in this.  P


Hi Kim

I'm OK with the March deal. After that, it's a little iffy.

I'm still not comfortable with the April-August El Paso arrangement,
especially since we really don't know how this line will work out after the
split. My preference would be to:
1) buy 1,456/day + loss gas at San Juan Index + 0.05 and flow it to So Cal
Topock(subject to true-up for curtailments); and,
2) sell other El Paso -> PG&E capacity at a future price, tbd.

I've attached my version of the term sheet.

Have a good weekend and trip. See you soon!

-----Original Message-----
From: Kim.Ward@enron.com [mailto:Kim.Ward@enron.com]
Sent: Friday, February 23, 2001 12:51 PM
To: balladeer@att.net
Subject: term sheet

Eric,

Attached is an updated term sheet.  As you know, any fixed prices are
subject to change until we reach an agreement.  Also, in the Canadian
Supply section, I left that part up to further negotiations in the case
that you get rid of the engage supply.  I found out after our conversation
that Enron Canada would be selling and nominating the AECO gas as well as
acting as agent for any transport down to Kingsgate.  This can be done but
I will have to work such negotiations with them.  Are you comfortable with
this for now?

Also, Q3 socal basis is now offered at $2.10.  FYI.

Let me know if you have any questions.  I will go ahead and put a deal in
the system for March since I will be gone next week.  Just let me know if
you agree with El Paso capacity bid for March.

Thanks for your help!

Kim

(See attached file: Feb_08_2001_supply_proposal.doc)

 - Feb_08_2001_supply_proposal.doc


Let's plan to get together.  Maybe you'll come over to our humble little pad
and have a nice home-cooked meal.  Hillary is a really good cook.

I am sorry I didn't invite you to the wedding, Jeff.  I was going to and
then changed my mind when you seemed so stressed and hassled by your
work/travel schedule.  I didn't want you to feel obliged to travel if you
didn't want to.  I should have asked you your preference.  I hope you
understand.

I'm so glad you're okay, relatively speaking.  You're a great guy, Jeff, and
I hope that this experience helps you and me and everybody around us to
focus on what's actually important in our lives, and to be especially kind
to each other.

Please tell me when you're coming around

Warm Regards,
ben

----- Original Message -----
From: <Jeffrey.A.Shankman@enron.com>
To: <Ben@macklowegallery.com>
Sent: Friday, October 05, 2001 2:40 PM
Subject: RE: your nice note

> Holy-shit, Ben.
>
> I take it Hillary was not at work that day.  I used to work in #2 on the
> 90th floor, and had to practice a few fire drills.  They weren't easy in
> the best of conditions.
> I could tell you a lot of horror stories as well, but if I started to, my
> key board would be wet with tears.  I had just gotten back from eqypt the
> week before.  Yom Kippur was nice--I spent it with my family in KY.  My
> sister is pregnant with her second, and her (first) daughter is
> unbelievable.  It's amazing to me how much time I've spent in the last
> month getting in touch with old friends, and spending more time with my
> family.  All of this other silly stuff seems a lot less important these
> days.
>
> I should be in NY in the next few weeks.  I can hardly wait to hear about
> the wedding, etc.
>
> Be well,
>
> Jeff
>
>
>
>     -----Original Message-----
>    From:   "Ben Macklowe" <Ben@MackloweGallery.com>@ENRON
>    Sent:   Tuesday, October 02, 2001 3:17 PM
>    To:     Shankman, Jeffrey A.
>    Subject:  your nice note
>
>
>    It is so nice to hear from you, Jeffrey.  I am  so glad that you
weren't
>    on one of those planes or at a meeting in the  Towers.  Personally, I
>    lost several acquaintances and clients, but no  family or friends, so I
>    feel really blessed.  In case you didn't know, my  Hillary worked on
the
>    101st floor in a charity that was located in the Cantor  Fitzgerald
>    offices.  It feels like a hand passed over her and she was  spared,
>    thank god.
>
>    When the rabbis closed the doors of the ark on Yom  Kippur eve (in
>    Rome's 100 year-old synagogue, btw), I just lost it.  I  started crying
>    for all those who didn't make it to this point, and my heart  yearned
to
>    mourn for all of them, to give their souls an aliyah before the doors
>    of their fate were sealed, but the emotions of it were just
>    overwhelming.   Words (for once) fail me.
>
>    I hope your Kippur was with loved ones and deeply  meaningful.  As for
>    me, I'm planning on celebrating Sukkoth tonight with my  families, and
>    then going to Washington Square Park for a quick l'chaim just to  make
>    it kosher.
>
>    Things have been a bit quiet, but hopefully we'll  have some bites on
>    your two items soon.  I do have a museum interested in  the Galle.
>
>    I am looking forward to sending you the most recent  batch of
>    masterpieces you got here.  You really are developing a great
>    collection.
>
>    Thanks for your good wishes,
>
>    Love,
>    ben
>
>
>
> **********************************************************************
> 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.
> **********************************************************************
>


I met with a contact at the Department of State Global Affairs division today.  While much was up in the air given last week's events, here is some information on where things stand for now:

1) The U.N. and Morocco intend to hold the next set of climate change negotiations (COP-7) as planned in late October. Under Secretary of State for Global Affairs Paula Dobriansky is scheduled to attend, but that could change.

2)  If the negotiations go forward, the U.S. will not seek to delay action by the other nations, but will engage to protect U.S. interests (consistent with their approach in Bonn in July);

3) Jim Connaughton, head of the White House's Counsel on Environmental Quality, has taken the staff lead on developing the Bush Administration's alternative.  While Connaughton has expressed confidence that he can put a plan together (timeline uncertain -- but aiming for COP-7), some feel that is ambitious given the political divide on this issue within the Administration, and especially given the current focus on security and a response to the terrorist attacks last week.  With regard to COP-7 timing, I would agree on both counts.

I will work with Pat and Jeff on follow-up with CEQ to get up to speed on their current thinking and offer our expertise as appropriate.

Please let me know if you have any questions or comments.

Lisa Jacobson
Enron
Manager, Environmental Strategies
1775 Eye Street, NW
Suite 800
Washington, DC 20006

Phone: +(202) 466-9176
Fax: +(202) 331-4717


Start Date: 4/12/01; HourAhead hour: 23;  No ancillary schedules awarded.
Variances detected.
Variances detected in Energy Import/Export schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041223.txt

---- Energy Import/Export Schedule ----
$$$ Variance found in table tblINTCHG_IMPEXP.
     Details: (Hour: 23 / Preferred:  12.00 / Final:  11.98)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/12/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_DODGERS
  ENGY_TYPE: WHEEL


---------------------- Forwarded by Keith Miceli/Corp/Enron on 06/05/2000
12:43 PM ---------------------------

Keith Miceli
06/05/2000 09:52 AM
To: Diomedes Christodoulou/SA/Enron@Enron, J Mark Metts/NA/Enron@Enron@ECT,
Mark Palmer/Corp/Enron@ENRON
cc:

Subject: Communication Plan Preparatons

Gentlemen:  The California Project is now moving from phase I into phases II
with respect to commuication/PR activities:

Phase I--No major leak/"no comment policy".  The only communications
responses (ESA Employee Memo, Employee Q&As for Elektro and Cuiaba, and
Q&Asfor vaious stakeholders) required to date were prompted by the TV (Bom
Dia) news story and Gazeta Mercantil article.

Phase II--Major leak requiring disclosure.  While prospective buyers have
signed CAs, there's always the possibility that news of the Project and/or
elements from the IM could be leaked--either inadvertently or by design.
While this scenario is unlikely, we need to be prepared to respond before
there is an actual sale of assets.  A draft press release has been prepared
for Ken Lay, confirming that Enron is considering the sale of its assets in
South America.  There is also a set of generic Q&As, which is being expanded
to include stakeholder-specific Q&As.  The ESA Employee Memo (May 8) is also
being modified.

Phase III--With the IM out, CAs signed and data rooms open, we should begin
to implement parts of the Communication Rollout Plan to demonstrate the
strength/success of the business strategy, limit speculation and provide
greater sense of certainty to important stakeholders.  The activities that we
can undertake now, include:

? Contact lists--Develop comprehensive contact lists of all
audiences/stakeholders.  Include names, addresses, phone, fax,, and email.
Put into Excel format.  Identify who internally "owns" each list.

? Speaking platforms--Develop list of speaking opportunities to introduce
Enron's business model and announce our regional strategy.

? Audience communications map*Develop a matrix that details the specific
communications strategy for key stakeholder audiences.  It should cover:
? *Timing: when should this audience be communicated with, e.g., before
public announcement, simultaneous with public, etc.
? *Form: what form should the communication take, e.g., written,
face-to-face, e-mail, conference call, employee meetings, etc.
? *Content: what is the message to be delivered
? *Responsibility:who,s responsible for creating communication; who within
company will deliver communication

? Communications training/message delivery preparation -- Key company
spokespeople need to be prepared to delivery the strategic messages regarding
transactions, but also to deftly handle difficult questions from employees,
analysts, customers and the media regarding the company's ultimate plans for
the region.  It will be essential that all spokespeople are delivering the
same message and are well prepared for difficult situations.

? Fact sheets on individual assets ) The information can be pulled from the
IM.  Developing fact sheets on each asset will enable them to be packaged in
any combination-- depending on the ultimate transaction.

? Vision piece*The existing white paper on company strategy would be revised
to  explain the rationale behind the strategy, future expectations for the
region, and intentions regarding employees and customers.

? Press kit shell:
*Press release ) can be drafted with blanks for key details
*Fact sheet on deal (template) ) assets involved; background on buyer/seller;
costs and sales terms; employees; customer base; revenue
*Asset fact sheets (see above)
*Vision (see above)
*Information buyer
*Information on Enron/ESA

? Q&A ) There are certain questions that will need to be answered regardless
of the situation; a master set of Q&A can be developed and then be broken up
and used as needed depending upon situation and audience.

Employee Issues
What happens to employees?
Will employees lose their jobs?  If so, how many?
What if I don,t want to work under the new owner?
What role will Jim and Diomedes play following sale?

Customer & Business Partner Issues
How will customers be affected by transaction?
How will ESA business partners be affected?
Do business partners have any say in whether transaction should go forward?

Approval Process
Who has to approve the sale?
What is the regulatory/approval process?  How long will this take?

Enron and ESA Strategy
What happens to ESA?
What business will you be in, in South America?
Will Enron repeat this process in other parts of the world?
What happens if not all of ESA assets are sold?

Financial Implications
What is the total anticipated price for all of the assets?
How much of company,s holdings does this represent?
What is the impact on shareholders?
How will the money be reinvested?

I would appreciate feedback on the proposed workplan, so I can make the
appropriate changes and begin completing the above tasks.  Diomedes, I know
that you and Mark are super busy, but I,m available to meet with you at your
convenience.  It would also be extremely valuable for me to reinitiate the TA
support from Sue Garman.  I,ve kept her posted on developments, so she,s
prepared to &hit the ground running.8   Lastly, Mark, with so many of the
rollout activities involving HQ, I would like a chance to discuss how to
organize a team effort to accomplish the many and varied activities.

Regards, Keith


Following this morning's meeting, we have agreed to have a fifteen minute conference call on a Thursday morning to give a quick update of issues.  Chris Calger will ensure a list of progress is circulated prior to the two calls.

For those of you cc:d on this.  Please feel free to join any of the calls to catch up on progress we are making with getting contracts in place.

Liz Taylor will redistribute the conference call numbers for Tuesday and Thursday.

Thanks

Louise


I don't know.  I haven't heard anything.  You might want to talk to superfan
( aka  Chad)

Nick Hiemstra
04/03/2000 03:31 PM
To: Eric Bass/HOU/ECT@ECT
cc:
Subject: Re: NO GAME TONIGHT

So who's watching the game and where?

	Enron North America Corp.

	From:  Eric Bass                           04/03/2000 03:08 PM

To: Brian Hoskins/HOU/ECT@ECT, Luis Mena/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Amir Ahanchian/HOU/ECT@ECT, Matthew Lenhart/HOU/ECT@ECT, Timothy
Blanchard/HOU/EES@EES, Bryan Hull/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT,
O'Neal D Winfree/HOU/ECT@ECT, David Baumbach/HOU/ECT@ECT, Kenneth
Shulklapper/HOU/ECT@ECT, Nick Hiemstra/HOU/ECT@ECT
cc:
Subject: NO GAME TONIGHT

Tonight's game has been cancelled


Milly .

If you're going to sell the warrants yourself. (It sounds like you should if
your getting $2 in time value) let me know and I'll call off the equity
group.


California Power-Buying Data Disclosed in Misdirected E-Mail
By Daniel Taub
Sacramento, California, July 6 (Bloomberg) -- California Governor Gray
Davis's office released data on the state's purchases in the spot electricity
market -- information Davis has been trying to keep secret -- through a
misdirected e-mail.
The e-mail, containing data on California's power purchases yesterday, was
intended for members of the governor's staff, said Davis spokesman Steve
Maviglio. It was accidentally sent to some reporters on the office's press
list, he said.
Davis is fighting disclosure of state power purchases, saying it would
compromise negotiations for future contracts. This week, Davis appealed a
state judge's order to release spot-market invoices, purchase orders and
confirmation sheets for power contracts signed through June 27. The state is
buying electricity on behalf of utilities, which are burdened by debt.
``It's an internal document,'' Maviglio said of the e-mail. ``We have a
meeting every morning where we discuss issues of the day.'' The e-mail
contained minutes of today's meeting, he said.
According to the e-mail, the state bought 283,000 megawatt- hours of
electricity for $37.4 million yesterday. One megawatt- hour is enough
electricity to light 750 typical California homes for an hour. Prices ranged
from $25 to $149.99 a megawatt-hour. Maviglio said the information in the
e-mail is accurate.
Power for next-day delivery during peak-use hours averaged $79.67 a
megawatt-hour on the California-Oregon border yesterday, according to
Bloomberg Energy Service. California paid an average of $132 on the spot
market, according to the e-mail. Prices on the spot market tend to be higher
than on the day-ahead market.
The governor has proposed releasing data on spot-market purchases once a
quarter, arguing that the state uses power-buying strategies tailored to each
season. Lawyers for the media and Republican legislators say state law
requires disclosure of contracts within seven days after they are signed.


Greg,

I've attached your EOL Palo Verde position.  It shows that you are short 225
Aug PV on EOL.  You bought 200 from Matt, making your net position short 25.

Let me know if you agree.

Thanks
Shifali


Please find attached the final versions of the ETA and PA with the changes
discussed and agreed on today's conference call. Please reply (Brent &
Hendry) with your approval and let me know if you have any questions/comments
Thanks
Carlos
x5-8705


We have delivered a copy of 2 LNG contracts to Scott Earnest's office
tonight. One is between Abu Dhabi Gas Liquefaction Company Limited & Dabhol
Power Company and the other is between Dabhol Power Company and Oman LNG
L.L.C.   I understand the EGEP Legal group (Steve Watson) is currently
working on a third contract but it is not executed at this time. He has
advised that he will forward a copy when it is completed.
---------------------- Forwarded by Connie Sutton/HOU/ECT on 06/14/2000 08:21
PM ---------------------------

Connie Sutton
06/13/2000 05:39 PM
To: Sally Beck/HOU/ECT@ECT, Scott Earnest/HOU/ECT@ECT, Mary
Solmonson/HOU/ECT@ECT
cc:
Subject: Looking for some LNG Contracts

I will let you know when I hear something regarding these type of contracts.
---------------------- Forwarded by Connie Sutton/HOU/ECT on 06/13/2000 05:38
PM ---------------------------

Bridgette Anderson @ ENRON

06/13/2000 03:20 PM
To: Connie Sutton/HOU/ECT@ECT
cc:
Subject: Looking for some LNG Contracts

---------------------- Forwarded by Bridgette Anderson/Corp/Enron on
06/13/2000 04:15 PM ---------------------------

	Rob Walls @ ENRON_DEVELOPMENT

	06/13/2000 02:22:03 PM

To: Sandeep Katwala, Bridgette Anderson@ENRON, Wade
Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Looking for some LNG Contracts

Bridgette -

By copy of this message, I have asked Sandeep Katwala (acting general counsel
for Enron India) to help locate these contracts for you.  Let me know if you
need anything else.  Thanks.
---------------------- Forwarded by Rob Walls/ENRON_DEVELOPMENT on 06/13/2000
02:22 PM ---------------------------

Bridgette Anderson @ ENRON

06/13/2000 02:19 PM
To: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rob
Walls/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:

Subject: Looking for some LNG Contracts

Gentlemen,

I was told that both of you worked on the Dabhol project, so I am hoping that
you can assist me.  As the message below states, I am trying to find
contracts that are related to this project.  Please see below for details.
If it was a mistake to send this message to you, please forward to the
correct individual.

Thank you,
Bridgette
---------------------- Forwarded by Bridgette Anderson/Corp/Enron on
06/13/2000 02:57 PM ---------------------------

Connie Sutton@ECT
06/12/2000 04:18 PM
To: Bridgette Anderson/Corp/Enron@ENRON
cc:

Subject: Looking for some LNG Contracts

Can you try to locate a copy of this contract for me.
---------------------- Forwarded by Connie Sutton/HOU/ECT on 06/12/2000 04:17
PM ---------------------------

Mary Solmonson
06/08/2000 05:05 PM
To: Connie Sutton/HOU/ECT@ECT
cc:
Subject: Looking for some LNG Contracts

Sally and Scott Earnest called this afternoon.  We will be setting up a new
risk book to manage LNG positions on a worldwide basis.  Supposedly, there
are several contracts from the old E.I. entity related to India for LNG.
They may reference Dabhol Power project, fuel management, fuel oil, heating
oil....

Scott desperately needs to get copies of these contracts.  Can you ask around
with some of the contacts you made on your India trip to see if you can find
these and get copies ?


Currently, we are unable to use IT to serve Ogy at Doyle on Transco.  I have
devised a super scientific method for pricing VNG space for Ogy.  Poke all
the holes in it you want.

Use the following formulas to determine the price to Ogy

The higher of
St 65 Offer plus $.35
TCO Offer plus $.14

Good Luck


Please provide any comments at your earliest convenience.

Thanks.

Teresa

Teresa G. Bushman
Enron North America Corp.
1400 Smith Street, EB 3835A
Houston, TX  77002
(713) 853-7895
fax (713) 646-3393
teresa.g.bushman@enron.com

----- Forwarded by Teresa G Bushman/HOU/ECT on 12/21/2000 09:15 AM -----

	Joseph Deffner
	12/21/2000 09:11 AM

		 To: Jeffrey.W.Dellapina@chase.com, "Shouse, August" <AShouse@velaw.com>,
Michael Garberding/HOU/ECT@ECT, Teresa G Bushman/HOU/ECT@ECT
		 cc:
		 Subject: Mahonia Series X Bond Form

---------------------- Forwarded by Joseph Deffner/HOU/ECT on 12/21/2000
09:10 AM ---------------------------

"Phil Bair" <pbair@jwortham.com> on 12/20/2000 10:07:25 AM
To: <Joseph.Deffner@enron.com>
cc: <Earline.Kendall@enron.com>
Subject: Mahonia Series X Bond Form

Joe-I have prepared a first round draft of the bond form for V&E to review
along with Chase.  The form assumes an initial advance of $330 million, and
an effective date of 12/27/00.

Please let me know of any comments or recommended changes to the bond form.
The sureties are also reviewing today.

Thanks.

Philip N. Bair
713-346-1378 (Telephone)
713-520-1260 (Telefax)

 - MahoniaXDft.doc


Karen

I believe this is the simpler model for analyzing project that the field
personnel have.

James


As you may or may not have heard, Kinder Morgan and Capline are planning on
building a new natural gas pipeline to California.  Please see the attached
press release.  This new project, Sonoran Pipeline will interconnect with
TransColorado at Blanco.  If you have any question or need any additional
information, please advise.

> Please read the attached press release:
>
>  <<0502Sonoran.doc>>
>

 - 0502Sonoran.doc