The State Lockyer Fires Earthy Attack at Energy Exec
Los Angeles Times, 05/23/01

World Watch
The Wall Street Journal, 05/23/01

Consumer rights cited in petition with Texas PUC
Houston Chronicle, 05/23/01

Enron to meet with Indian officials
Houston Chronicle, 05/23/01

New Cynet president to administer change
Houston Chronicle, 05/23/01

Enron, Indian goverment talks on power dispute put off
Associated Press Newswires, 05/23/01

Enron says Indian panel calls off power contract meeting, gives no explanation
AFX News, 05/23/01

Enron, Maharashtra Power Dispute Negotiator Resigns (Update4)
Bloomberg, 05/23/01

INDIA: Head of India state panel for Enron talks quits.
Reuters English News Service, 05/23/01

India Enron Negotiator Offers To Resign After Criticism
Dow Jones International News, 05/23/01

India Dabhol Pwr Co: Mtg With State Govt Panel Canceled
Dow Jones Energy Service, 05/23/01

INDIA PRESS: Dabhol Row To Cause INR30B Loss To Lenders
Dow Jones International News, 05/23/01

INDIAN CHIEF MINISTER URGES PANEL CHAIRMAN TO WITHDRAW RESIGNATION
Asia Pulse, 05/23/01

India: MSEB to pay Dabhol bill 'under protest'
Business Line (The Hindu), 05/23/01

US ENRON CORP PULLS OUT OF QATAR-UAE GAS PROJECT
Asia Pulse, 05/23/01

Maharashtra may terminate DPC's services
The Economic Times, 05/23/01

ASIA-PACIFIC: Enron may seek damages NEWS DIGEST
Financial Times; May 23, 2001

Enron goes for valuation of businesses in India
Business Standard, 05/23/01

SEC Task Force Says Investors Need More 'Soft' Data
Dow Jones Business News, 05/22/01

BANDWIDTH BEAT: Video On Demand II May Have Happy Ending
Dow Jones Energy Service, 05/22/01

USA: FERC sets Thursday conference on Calif natgas problems.
Reuters English News Service, 05/22/01

Enron Hires Consultants to Value Business in India, Paper Says
Bloomberg, 05/22/01

California; Metro Desk
The State Lockyer Fires Earthy Attack at Energy Exec
JENIFER WARREN
TIMES STAFF WRITER

05/23/2001
Los Angeles Times
Home Edition
B-7
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- In a dramatic escalation of energy crisis rhetoric, California
Atty. Gen. Bill Lockyer this week suggested the chairman of a Houston-based
power company should be locked in a prison cell with an amorous, tattooed
inmate named Spike.
Lockyer, who is investigating whether energy firms have manipulated prices on
the wholesale electricity market, made the comment in an interview with the
Wall Street Journal that appeared Tuesday.
"I would love to personally escort [Enron Corp. Chairman Kenneth] Lay to an
8-by-10 cell that he could share with a tattooed dude who says, 'Hi my name
is Spike, honey,' " Lockyer said.
Enron spokesman Mark Palmer called the comment "counterproductive rhetoric"
that "does not merit a response."
But other industry representatives denounced the remark as "outrageous,"
especially because neither Lockyer's office nor any investigative panel has
filed charges against Enron or other companies.
"You'd expect that the state's chief legal counsel would file charges first
and make public statements second," said Gary Ackerman of the Western Power
Trading Forum, an association of energy producers and traders. "We're very
disappointed with his choice of words, which don't exactly fit the profile of
his office."
In an interview Tuesday, Lockyer said he decided to "ratchet up" the
commentary to "put [energy companies] on notice" that "we are not afraid of
them and have the will to prosecute."
"What I'm trying to do is let these economic buccaneers understand that if we
catch them, they're going to be prosecuted," Lockyer said. "Just because
they're multimillionaires and run big corporations, it doesn't provide them
with immunity."
The attorney general is investigating whether power company officials tried
to maximize profits through illegal manipulation of prices on the wholesale
energy market. Several panels, including a state Senate committee and the
California Public Utilities Commission, are conducting similar probes.
On Tuesday, Lockyer announced that three power companies have agreed to turn
over documents subpoenaed months ago by his investigators. The attorney
general went to court to obtain the documents after the companies failed to
meet a March 19 deadline to hand them over.
Lockyer said the forthcoming documents would help his office as it sifts
through mountains of evidence in search of possible violations of antitrust
or unfair business practice laws.
"Evidence is accumulating that certainly infers illegal activity," Lockyer
said. "But we need to make sure it's compelling and clear enough that you can
convince a jury."
Lockyer said he singled out Enron's chairman because the Houston company is
the world's largest energy trader.
At least one observer found Lockyer's comments refreshingly candid. Harry
Snyder, a senior advocate of Consumers Union, said, "Let Lockyer be Lockyer."
*
Times staff writer Dan Morain contributed to this story.

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

International
World Watch
Compiled by David I. Oyama

05/23/2001
The Wall Street Journal
A21
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Unit Threatened With India Fine
An Indian state utility is planning to impose a second penalty of four
billion rupees ($85 million) on U.S. energy company Enron's local unit,
barely a week after Enron took its first step to pull out of the embattled
power project. A Maharashtra State Electricity Board official said the fine
on Dabhol Power would be for not meeting capacity targets within a stipulated
period. Dabhol Power officials declined to comment. The MSEB earlier this
year imposed a similar penalty on Dabhol, which it hasn't paid, saying its
plant couldn't be ramped up to full capacity within three hours from a cold
start.

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

May 23, 2001, 4:38AM
Consumer rights cited in petition with Texas PUC
By LAURA GOLDBERG
Copyright 2001 Houston Chronicle
Residential consumers switching power companies under a pilot deregulation
program aren't being properly informed of their rights, four consumer groups
said Tuesday.

At issue is a document called "Your Rights as a Customer" that electric
providers are required by the state Public Utility Commission to give
consumers signing up to switch companies.
The document must include information on a variety of topics, including
filing complaints against providers, protection against unauthorized service
switches, meter testing and privacy rights.
Consumers Union, Texas Legal Services Center, Texas Ratepayers' Organization
to Save Energy and the AARP Capital City Task Force for Deregulation of
Electricity filed a petition Tuesday with the PUC.
In it, they asked the PUC to require electric providers to fix their
documents, to take any other action needed to clear up consumer confusion
that may be occurring, and to develop a standard document format for
providers to use.
They also ask that the PUC's education campaign better inform consumers of
their rights.
Starting Jan. 1, when the Texas electricity market deregulates, all Texas
consumers will be able to choose power providers.
Before that, a limited number of consumers will be able to get power from new
providers under the state's pilot program starting in July.
Nearly 50,000 residential customers have signed up for the pilot, and
thousands of slots are still open.
That Texas consumers haven't had to shop for electricity presents a challenge
to start with, said Janee Briesemeister, senior policy analyst with Consumers
Union Southwest Regional Office.
"And when the information that is given to consumers is confusing, they're at
a further disadvantage," she said, adding that the PUC said it would adopt a
standard format for the document and hasn't done so yet.
Terry Hadley, a spokesman for the PUC, said the agency did promise a standard
format for full competition, which starts in January. Officials hope to work
with the consumer groups to address their concerns, he said.
"It is yet another reason for the pilot project, so that we can get all these
things done to everyone's satisfaction before the full roll-out come
January," he said.
The commissioners may discuss the petition at its open meeting Thursday.
The consumer groups analyzed the "Your Rights as a Customer" documents being
used by seven electric providers and concluded that none satisfied all the
PUC disclosure requirements.
Some try to put information in easy-to-understand language, while others
don't, the groups said.
The procedure to file complaints with electricity providers, and then with
the PUC, are identical for all providers, the petition noted.
"However, depending on which `Your Rights' document you read, the way the
complaint process works and how you access it varies," it goes on to say.
"Accessing and utilizing the customer complaint process should be
straightforward and objective, not a riddle for consumers to solve."
For example, the petition says, one provider doesn't explain an electric
provider's responsibility to do an investigation and give the customer the
results within 21 days, while another leaves out PUC important contact
information and basics on what information is needed to file a complaint.
The groups reviewed the "Your Rights" documents being given to consumers by
following companies: Entergy Solutions, First Choice Power, Green Mountain
Energy Co., The NewPower Co., Shell Energy and TXU Energy Services. All are
vying for customers in Houston. The document of Reliant Energy Retail
Services, which is marketing to customers outside Houston, was also included.
Officials with Shell Energy, NewPower and First Choice said they were still
reviewing the petition and couldn't comment on it, while TXU couldn't be
reached.
Green Mountain Power said it followed appropriate guidelines in creating its
document but does support a standard format, while Shell said it would back
anything that makes it easier for customers to understand their rights.
"While Entergy Solutions is very confident that our document provides a
complete picture of consumer protections, we agree that `Your Rights as a
Customer' should be standardized," said Jim DeLong, Entergy's vice president
of retail markets.
Pat Hammond, a Reliant spokeswoman, said the company had already incorporated
suggestions about its document made by PUC officials, who reviewed a draft.
Most of the petition's comments relate to items that don't apply until full
deregulation starts, Hammond said.
While Reliant believes its document follows the rules, it plans to draft a
new one for full deregulation.

May 23, 2001
Houston Chronicle
Enron to meet with Indian officials
BOMBAY, India -- The Indian subsidiary of Houston-based power concern Enron
Corp. said Tuesday it would meet government officials for talks on a power
supply dispute.
"We look forward to hearing the proposed solutions ... particularly relating
to creditworthy purchases for the power," said a statement from Dabhol Power
Co., Enron's Indian unit.
The statement comes two days after the company issued a preliminary notice to
the Maharashtra State Electricity Board, a state-run utility, that it would
stop supplying electricity if the government company continued to default on
payments.
Representatives from Houston-based Enron will meet today with officials from
the utility, the federal government and Maharashtra, the western Indian state
where the project is located.
The electricity board has denied it defaulted on paying electricity bills to
the power company that is setting up a $3 billion project in Maharashtra
state. Electricity board officials said overdue December and January bills of
$48 million should be offset against a fine of $85.31 million it imposed on
Enron for not supplying power during the period. Enron disputes the fine.
Politicians in Maharashtra say the cost of Dabhol power is too high and have
called for renegotiating the tariff. Others have suggested selling power to
nearby power-hungry states.

May 23, 2001
Houston Chronicle
New Cynet president to administer change
Executive plucked from vendor in Michigan
By TOM FOWLER
Copyright 2001 Houston Chronicle
Houston company Cynet has chosen an executive from one of its vendors to lead
it through a reorganization as its new president and chief operating officer.
Robert Demyanovich, the founder of Michigan-based Mail2Media, a company Cynet
planned to work with as a vendor, will take on the new posts to help the
company reach profitability by early next year.
"What caught our eye about him was his background in a part of our core
business through fax and e-mail," said Sam Beale, vice president and general
counsel for Cynet.
Demyanovich will continue to have an advisory capacity with his prior
company, but will move from Detroit to Houston to take on the Cynet position
full time.
Vincent Beale Sr., chairman and chief executive officer of Cynet, said
Demyanovich will help the company focus on growing its two core products,
global messaging software and wireless device technology.
"He has already been instrumental in helping the company shape its revised
business plan, along with aggressive cost reduction initiatives as the
primary drivers in reaching profitability," Vincent Beale said.
Part of the reorganization has included cutting its staff by about 60
percent. Cynet has been steadily eliminating jobs since last winter, going
from a high of about 125 workers to about 50.
In February, Cynet also signed an agreement with AECsoftUSA to transfer all
existing accounts through its Cynet Interactive service to AECsoft. In
exchange, AECsoft would forgive outstanding amounts owed by Cynet.
The company expects to take a one-time charge in the current quarter to
account for the reorganization, but officials expect it to cut the quarterly
cash burn rate from $2 million to cash flow positive by the first quarter of
2002.
Both the changing climate for technology companies and the failure of a deal
to sell off part of the business to a French company fueled the
reorganization.
The technology market downturn that started last spring has made investors
demand a clearer path to profit rather than simply revenue growth, the Beales
said, meaning the company needed to slim down and focus on running
efficiently.
The company also saw a deal to sell its fax broadcasting business to I-Media
Group of France fall apart when I-Media couldn't raise the $6.7 million
negotiated in the deal. Instead, Cynet decided to integrate that technology
back into its global messaging product, said Chief Financial Officer Greg
Smith.
The global messaging product line will now let businesses send out messages
to thousands of recipients at once via fax, e-mail or voice messaging.
With new technology that will be introduced by Cynet's relationship with
Demyanovich, the software will also let a user design a message and send it
via printed media, such as a letter through the mail.
The company will also focus on its high-speed wireless technology offerings,
such as an add-on to the Compaq iPaq Pocket PC that turns the hand-held
digital assistant into a cell phone.
When it went public in January 2000, Cynet became Houston's only
African-American-managed publicly traded company. It has received financial
backing from Enron and Compaq Computer Corp., which has an 8.9 percent stake
in the company from an earlier $2 million investment and a recent loan.

Enron, Indian goverment talks on power dispute put off

05/23/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

BOMBAY, India (AP) - Talks on a power supply dispute between government
officials and the Indian subsidiary of the American energy company Enron were
canceled Wednesday after the head of a negotiating panel resigned.
Madhav Godbole, chairman of the panel of state and federal government
officials and officers of a state power utility, resigned to protest a
statement by a top politician that implied the panel had a "negative"
attitude.
Sharad Pawar, leader of the Nationalist Congress Party that runs the
Maharashtra state coalition government, told reporters late Tuesday that he
did not foresee a positive resolution since the panel was headed by a person
with "negative attitudes."
Pawar, who did not name Godbole, later said his statement had been
misinterpreted. He said he had merely stated that the panel needed to work
with a more positive frame of mind.
Representatives of Dabhol Power Co., Enron's Indian unit, were scheduled to
meet the state-government appointed panel three days after the company issued
a notice to stop supplying electricity if the Maharashtra State Electricity
Board continued to default on payments.
A new date for the next meeting has not yet been fixed.
Godbole earlier headed a five-member committee that submitted a 198-page
report last month to the state government recommending renegotiating a power
supply agreement with Enron to lower prices.
State government ministers have protested that the power supplied by phase
one of Dabhol's two-year-old naphtha unit is "unaffordable."
While Enron has demanded that the power utility, the Maharashtra State
Electricity Board, make electricity payments on time, the board denies it is
a defaulter.
The board has asked that overdue December and January bills of dlrs 48
million be offset against a fine of 4 billion rupees (dlrs 85.31 million) it
slapped on Enron for not supplying power during the same period. Enron has
refuted the fine.
(rtb-ng-bdb-twx)

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

Enron says Indian panel calls off power contract meeting, gives no explanation

05/23/2001
AFX News
(c) 2001 by AFP-Extel News Ltd

NEW DELHI (AFX) - U.S.-based Enron Power Corp said a meeting with an Indian
expert panel set up to renegotiate an electricity supply contract to
Maharashtra state had suddenly been called off.
"We went to attend the meeting and we were told the meeting was called off.
We were not assigned any reason for that," a spokesman for Enron's Indian arm
told Agence France-Presse.
jn For more information and to contact AFX: www.afxnews.com and
www.afxpress.com

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

Enron, Maharashtra Power Dispute Negotiator Resigns (Update4)
2001-05-23 07:08 (New York)

Enron, Maharashtra Power Dispute Negotiator Resigns (Update4)

     (Adds Maharashtra chief minister's comments in third
section.)

     Mumbai, May 23 (Bloomberg) -- A negotiator trying to resolve
a payment dispute between Enron Corp. and India's Maharashtra
State Electricity Board resigned after being criticized for the
way he handled the talks, setting back hopes for a compromise.
     ``The meeting has been canceled because (Madhav) Godbole has
put in his papers,'' said Vinay Bansal, chairman of the
electricity board. ``It's not certain when the meeting will be
held again.''
     The meeting had been scheduled for 11 a.m. Mumbai time.
Dabhol on Saturday began a procedure to end its power supply
contract by serving a ``preliminary termination notice'' on the
electricity board because of unpaid electricity bills.
     India's federal and state governments, which have guaranteed
payments for power by the board and some of the loans to help fund
the project, may have to pay Dabhol more than 170 billion rupees
($3.6 billion) if it carries through termination of the 2,184
megawatt power venture.
     Dabhol is owed 3 billion rupees by the board for power
supplied in December and January. The board has refused to pay
because it said the bills should be lower to reflect a penalty
Dabhol should pay for failing to supply power at full capacity.
     Dabhol is 65 percent owned by Houston-based Enron, the
world's biggest energy trader.
     Godbole, a former chairman of the electricity board, was
criticized for his handling of the negotiations between Enron and
the electricity board.

                            Statements

     ``I have resigned because of statements made against me'' by
Sharad Pawar, leader of the Nationalist Congress Party in the
state's ruling coalition, Godbole said in an interview. The
decision to quit was ``well-considered,'' he said.
     The Economic Times quoted Pawar as saying ``a person with a
positive attitude should head the renegotiation panel. A
pessimistic disposition about Enron will further antagonize the
two parties.''
     Pawar was the state's chief minister when Enron first signed
the power supply agreement with the electricity board.
     Anti-Enron activists went to Godbole's residence in South
Mumbai to try to persuade him to return to the negotiating
committee, as they view him as a supporter of their cause.
     ``It's important to get him back,'' said Pradyumna Kaul, an
activist with Enron Virodhi Andolan, a non-governmental
organization opposed to the project. Still, he said Godbole's
resignation has helped focus attention on the need for a solution.

                         Press Conference

     At a press conference, Maharashtra Chief Minister Vilasrao
Deshmukh said the state government hasn't accepted Godbole's
resignation.
     ``We are going to ask him to start working again,'' he told
reporters. ``We'll clear all the misunderstandings.''
     Chhagan Bhujbal, deputy chief minister of the Maharashtra
government, and a member of the Nationalist Congress Party, said
his party supports Godbole.
     ``Let the state government's response come, and I will give
it a thought,'' Godbole said, when told of the comments at the
press conference.
     About ten days ago, three other members of the committee led
by Godbole, including Deepak Parekh, chairman of Housing
Development Finance Corp., India's biggest home mortgage lender,
quit citing personal reasons.
     The committee was set up by Maharashtra after Dabhol in April
authorized its Managing Director Wade Cline to cancel the power
supply contract.
     Enron has called on India's federal government to ensure a
resolution of the dispute.
     ``I am awaiting the return of the power minister who is
abroad,'' Finance Minister Yashwant Sinha told reporters in New
Delhi. Power Minister Suresh Prabhu was in France and is returning
later today.

INDIA: Head of India state panel for Enron talks quits.

05/23/2001
Reuters English News Service
(C) Reuters Limited 2001.

BOMBAY, May 23 (Reuters) - The head of an Indian panel examining ways to
restructure U.S. energy giant Enron Corp's troubled power project resigned on
Wednesday, dashing hopes of an early settlement of the dispute.
Enron's $2.9 billion project in the western state of Maharashtra is widely
seen as a test case for India's plans to privatise its power sector.
"I spoke to the chief minister (of Maharashtra) this morning and I have
submitted my resignation to him," panel chief Madhav Godbole told Reuters.
After months of wrangling over a payments dispute with the cash-strapped
state electricity board, the Enron unit that runs the project, Dabhol Power
Co, last Saturday issued a preliminary notice to terminate its contract to
sell power to the utility.
Godbole said he did not approve of a statement on Tuesday by Sharad Pawar,
president of the National Congress Party (NCP), describing Godbole, a former
bureaucrat, as having a negative approach.
Pawar's NCP is a major ally of the coalition government that rules
Maharashtra.
A meeting between the panel and Enron's Dabhol Power Company scheduled for
Wednesday has been cancelled, Godbole said.
The negotiating panel was expected to look at cutting power tariffs as well
as third-party sales if the state-run utility could not absorb the power
generated by the power project, located at Dabhol, on India's west coast.
Media reports on Wednesday quoted Pawar as saying the attitude of the
renegotiating committee was a cause of concern.
"If you have to renegotiate, you have to strengthen and not weaken the
hands," Godbole said. "This way there is no productive work that can be
done."
Dabhol's termintion notice is widely seen as a first step by Houston-based
Enron to pull out of the 21,84 MW power project.
The project's 740 MW first phase has begun operation, and the 1,444 MW second
phase is expected to be commissioned later this year. Dabhol Power Corp is 65
percent owned by Enron.

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

India Enron Negotiator Offers To Resign After Criticism

05/23/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Madhav Godbole, chairman of the committee appointed
by the Maharashtra government to renegotiate the power purchase agreement
with the Enron Corp.'s (ENE) Indian unit Dabhol Power Co. resigned from the
panel Wednesday, according to Press Trust of India.
"I have resigned due to the derogatory remarks made against me by Nationalist
Congress Party Chief, Sharad Pawar, last night," Godbole told Press Trust.
He has sent his resignation to Maharashtra state Chief Minister Vilasrao
Deshmukh, Press Trust reports. But Star TV said Deshmukh has asked Godbole to
stay on.
In an apparent criticism of Godbole, Pawar who is a member of the state
coalition government, said last night he was apprehensive about the outcome
of the renegotiations "as those leading the talks from the government side
are working with a negative approach."
Late Tuesday, Enron said it was prepared to meet government officials for
talks scheduled Wednesday on a power supply dispute.
"We look forward to hearing the proposed solutions... particularly relating
to creditworthy purchases for the power," said a statement from Dabhol Power
Co.
The statement came two days after the company issued a preliminary notice to
the Maharashtra State Electricity Board, a state-run utility, that it would
stop supplying electricity if the government company continued to default on
payments.
Enron representatives were scheduled to meet officials from the western
Indian state of Maharashtra, where the project is located, and federal
government and MSEB officials Wednesday.
The MSEB has denied it defaulted on paying electricity bills to the power
company that is setting up a $3 billion project in Maharashtra state. MSEB
officials said overdue December and January bills of $48 million should be
offset against a fine of 4 billion rupees ($1=INR47.005) it imposed on Enron
for not supplying power during the period. Enron disputes the fine.
Politicians in Maharashtra say the cost of Dabhol power is too high and have
called for renegotiating the tariff. Others have suggested selling power to
nearby power-hungry states.
Politicians complain Dabhol's costs have averaged more than INR4 as against
INR1.8 per unit agreed in 1995 for the naphtha-generated electricity from the
740-megawatt plant.
The controversy erupted last year when prices shot up to INR7 per unit
because of worldwide fluctuations of oil prices and depreciation of the rupee.

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

India Dabhol Pwr Co: Mtg With State Govt Panel Canceled

05/23/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- Enron Corp.'s (ENE) Indian unit Dabhol Power Co. said
Wednesday a meeting with the Maharashtra state government's expert panel -
scheduled for 0530 GMT Wednesday - has been called off, spokesman Jimmy Mogal
told Dow Jones Newswires.
The aim of meeting was to renegotiate a power purchase agreement between DPC
and the Maharastra State Electricity Board.
"We went to the meeting today (Wednesday) but we were told the meeting had
been called off. Although no official reason was given, we were given to
understand that the chairman of the panel, Madhav Godbole, had resigned."
Local press reports confirmed Godbole's resignation Wednesday.
"I have resigned due to the derogatory remarks made against me by Nationalist
Congress Party Chief, Sharad Pawar, last night," Godbole told the Press Trust
of India.
Mogal said Dabhol will be waiting to hear from the Maharashtra state
government and the MSEB to determine its future course of action.
He declined to say whether the DPC will participate in a meeting with the
state panel if it was headed by a new chairman.
"I would not comment on this issue now. Let the Maharashtra state government
decide first on what they want to do next," Mogal said.
Late Tuesday, Enron said it was prepared to meet government officials for
talks scheduled Wednesday on the long-running power supply dispute.
"We look forward to hearing the proposed solutions... particularly relating
to creditworthy purchases for the power," said a statement from Dabhol Power
Co.
The statement came two days after the company issued a preliminary notice to
the MSEB, a state-run utility, that it would stop supplying electricity if
the government company continued to default on payments.
The MSEB has denied it defaulted on paying electricity bills to the power
company that is setting up a $3 billion project in Maharashtra state.
MSEB officials said overdue December and January bills of $48 million should
be offset against a fine of 4 billion rupees ($1=INR47.005) it imposed on
Enron for not supplying power during the period. Enron disputes the fine.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427; Himendra
Kumar@dowjones.com

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

INDIA PRESS: Dabhol Row To Cause INR30B Loss To Lenders

05/23/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

BOMBAY -(Dow Jones)- The three Indian lenders to the Dabhol Power Company -
Industrial Development Bank of India, State Bank of India and ICICI - may
take a loss of 30 billion rupees ($1=INR47.005) if the company decides to
invoke the accelerable guarantee clause in the wake of the preliminary
termination notice, the Business Standard reports.
The clause says that the lenders will have to cover the loans should the
project fail.
Also at stake is the lenders' INR22.5 billion in direct loans outstanding
from the Dabhol Power Company, the Indian arm of Enron Corporation, the
newspaper said.
According to the newspaper, if the accelerable guarantee clause is invoked,
the three Indian financial intermediaries will face a massive cash crunch.
From phase 1 of Dabhol's project, the outstanding foreign loan from Exim of
the U.S. for $221 million is backed by the guarantees of the three Indian
lenders.
The project has run into controversy with the Maharashtra government and the
Maharashtra State Electricity Board over power supply dues. The power company
has threatened to withdraw from the massive power project, one of India's
largest foreign direct investments.

Web Site: www.business-standard.com

-By Bombay Bureau, Dow Jones Newswires;
91-22 2884211;djn.bombay@dowjones.com -0- 23/05/01 04-44G

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

INDIAN CHIEF MINISTER URGES PANEL CHAIRMAN TO WITHDRAW RESIGNATION

05/23/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

MUMBAI, May 23 Asia Pulse - The Chief Minister of the western state of
Maharashtra, Vilas Rao Deshmukh, today appealed to Madhav Godbole to withdraw
his resignation from chairmanship of the committee set up for negotiating the
power purchase agreement (PPA) with the Enron-promoted Dabhol Power Company
(DPC).
Godbole, former federal Home Secretary, submitted his resignation to the
chief minister this morning after an adverse comment made against him by the
Nationalist Congress Party president Sharad Pawar at a public function last
night.
"Godbole's in-depth knowledge and experience makes him indispensible for
handling vexed issues such as renegotiation with the US energy giant,"
Deshmukh told PTI.
"I am requesting on behalf of Maharshtra government that he reconsider his
decision to resign," he added.
In an apparent criticism of Godbole, Pawar had said, he was "apprehensive of
the outcome of the discussions with Enron as those leading the talks from the
government side are working with a negative approach".
(PTI) 23-05 1751

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

India: MSEB to pay Dabhol bill 'under protest'

05/23/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, May 22. THE Maharashtra State Electricity Board will pay Dabhol Power
Company's April bill on May 25 "under protest". "We will pay DPC Rs 137 crore
under protest unless Enron takes any step to jeopardise the situation," a
senior MSEB official said.
The two companies will come face-to-face at the negotiating table on
Wednesday.
According to the official, the board will pay the bill "under protest"
because DPC refused to adjust the rebate slapped on MSEB in its earlier
bills.
"We had asked them (DPC) to carry out corrections in their February bill when
we had slapped the penalty. We had asked them to show the shortfall in
supplying power to MSEB, for which we charged them the rebate, in their
earlier bills. But DPC did not do so," the official said.
The board plans to charge DPC for the shortfall in supply for February and
May. The rebate is calculated once in four months and the last couple of
defaults in supply will be charged at the end of this month, he said.
"There is a cap on the rebate amount we can charge so the amount may not
exceed Rs 400 crore," the official said. MSEB had earlier slapped a rebate of
Rs 401 crore on DPC for shortfall in power supply on January 28.
"Although we are paying the April bill under protest, we hope that DPC will
make the required corrections in the May bill which is due on June 5," the
official said.
Enron keen on Dabhol: Meanwhile, according to sources, Enron is keen on
continuing with the Dabhol power project and would like its lenders to
continue disbursements, in spite of beginning the termination process.
They said some lenders are also of the view that since it is more than 90 per
cent complete, it makes more sense to finish the project.
Lenders had stopped disbursement of funds to the project some time early this
year following the dispute between DPC and MSEB.
Indian lenders had consistently maintained that they preferred going ahead
with DPC. They had also succeeded at a London meeting last month to persuade
all lenders to not consent to terminating the project.
It was, however, the foreign lenders' will that prevailed ultimately, and
they gave their consent last week to invalidate the power purchase agreement
with MSEB.
DPC today confirmed that it would be present at the Godbole Committee meeting
on Wednesday. DPC's stand is also being viewed by Indian lenders as a
"positive" development after the pre-termination notice being served.
DPC said in a release issued here, "consistent with our traditional practice
of being open to discussions with MSEB, State Government and the Centre, we
confirm that DPC will be represented at the Godbole panel meeting tomorrow.
We look forward to hearing the proposed solutions from the committee,
particularly related to creditworthy purchasers for the power. In addition,
we are extremely interested in the Centre's attendance and learning of their
expected role." The Central Government representative, Mr A.V. Gokak, was not
present at the last meeting as he was "appointed at too short a notice". DPC
had cited it as the Centre's unwillingness to take any "positive" role in the
process.
Our Bureau

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

US ENRON CORP PULLS OUT OF QATAR-UAE GAS PROJECT

05/23/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

ABU DHABI, May 23 Asia Pulse - US Enron Corp. has bowed out from a US$500
million phase of a US$6-US$S8 billion project to route Qatari gas to the
United Arab Emirates and has sold its 24.5 per cent stake in Dolphin Energy
Ltd (DEL) to UAE Offsets Group (UOG) for an undisclosed amount, regional
newspapers including Oman Observer report today.
Reuters reported that a senior Enron official for the Middle East explained
at a press conference that Enron was not suited to a project that had evolved
into a major upstream venture.
Last week, the Middle East Economic Digest reported that the profit margin
for Enron would be low and that other partners in the project regarded the
company's estimated cost for constructing and laying pipeline as too high.
TotalElfFina is reported to be interested in increasing its 24.5 per cent
stake in the project although DEL Chairman Ahmed Ali Al Sayegh emphasised
that DEL would seek another partner in the project.
Qatar sits on the world's third largest gas reserves.
(ONA) 23-05 1431

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

Maharashtra may terminate DPC's services
Girish Kuber

05/23/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

MUMBAI
THE DABHOL Power Company is likely to be served with a primary termination
notice from the Maharashtra government.
Senior officials of the state's energy department and the Maharashtra State
Electricity Board on Tuesday, separately, held a series of meetings with
Maharashtra's Advocate-General to decide their strategy.
"This is certainly the first option we are looking at to tackle the situation
after the Enron served a PTN to MSEB," sources from the state's energy
minister said.
The state government and MSEB will issue a primary termination notice to DPC
if Enron refuses to change its stand and 'non-cooperation' with the Godbole
panel continues. "This could be the only option left with us to face the
crisis," said sources.
The decision to issue the termination notice will be arrived at only after a
meeting of the Godbole panel on Wednesday. The meet will also be attended by
A V Gokak, the Centre's nominee on the Godbole panel.
This will be the first meeting being held after DPC issued the notice and
also the first in which a Centres's nominee will be present.
Meanwhile, changing its earlier stand, US energy major Enron, DPC's promoter,
has also decided to attend the meet.
Enron said it was looking forward to "hearing proposed solutions from the
Godbole panel particularly related to credit-worthy purchasers for the
power".
An Enron spokesman said they were "specially interested in the Centre's
presence and learning of their expected role".

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

		ASIA-PACIFIC: Enron may seek damages NEWS DIGEST
Financial Times; May 23, 2001
By JULIE EARLE

		Enron may seek damages
		Enron, the US power company, warned yesterday it would move to recoup
significant termination damages if it was unable to settle a dispute over
unpaid bills with the Maharashtra State Electricity Board (MSEB). It is
understood that Enron would seek damages of Dollars 3.5bn (Pounds 2.4bn) to
Dollars 5bn (Pounds 3.4bn).
		It has a 65 per cent stake in the Dabhol Power Company (DPC), which operates
the Bombay plant that has supplied the MSEB. Julie Earle, New York For
regional reports, www.ft.com/asiapacific
		Copyright: The Financial Times Limited

Enron goes for valuation of businesses in India
P Vaidyanathan Iyer & Parul Gupta NEW DELHI

05/23/2001
Business Standard
1
Copyright (c) Business Standard

In a move which may be a prelude to Enron's complete exit from India, the
company has appointed Arthur Andersen and Jones Lang La Salle to undertake a
valuation exercise of all its businesses in the country, including the
controversial Dabhol Power Company. While Jones Lang La Salle will assess all
the real estate investments of Enron in India, Arthur Andersen will value the
business worth of the Houston-based energy major's Indian set-up.
When contacted, a company spokesperson declined to comment. "Nobody in Enron
will talk about it," he said. However, sour- ces said the appointment of
consultants was in line with Enron's strategic decision of pulling out of the
2,144 mw power venture which has been mired in controversy from day one.
According to sources, Enron's real estate investments have taken a big hit.
"Enron invested in prime real estate during 1992-1995 when the prices were at
a peak. However, they have touched more realistic levels now," said a real
estate consultant. Jones Lang La Salle is, however, tight-lipped about such a
mandate from Enron. Meanwhile, sour- ces said that Cushman & Wakefield which
had earlier finalised certain real estate investments for Enron was also in
the race. CB Richard Ellis has also proposed certain clients to Enron for
buying/leasing some of its property. Enron's Houston-based president Jeffrey
Skilling had in February said in an interview to Business Week that Enron
"should not be in there (India) building $2 billion power plants. Our cost of
capital is too high for that." DPC had disregarded the contents of the
Godbole Committee report when it issued a preliminary termination notice to
MSEB on May 19. The PTN gives DPC, MSEB, the state government and the Centre
six months to resolve the issue amicably. If the talks fail, DPC would issue
the final termination notice. Enron India had earlier this year also decided
to abandon the proposed joint venture with MSEB and Global Telesystems for a
broadband network in Maharashtra.

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

SEC Task Force Says Investors Need More 'Soft' Data
By Judith Burns

05/22/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Dow Jones Newswires
WASHINGTON -- A new Securities and Exchange Commission task-force report
calls for an overhaul of federal accounting rules, saying financial
statements don't reflect the true value of public companies.
"At a time when our stock markets loom so large in the economy, we need to
close large gaps in the quality of information that companies disclose," said
task-force chairman Jeffrey Garten, dean of Yale University's School of
Management.
The task force wants to close the gaps by providing investors with so-called
soft data, such as intangible assets, that don't appear on corporate balance
sheets.
Any information that helps investors assess future corporate profits and cash
flow "should be encouraged" by regulators and accountants, the task force
said in a report issued Tuesday. It stopped short of saying regulators should
require companies to divulge such information, but suggested protecting firms
from litigation as long as they report truthfully.
"Soft" data such as financial information about a company's business model,
competition, intangible assets and operating performance measures is likely
to become increasingly valuable, the task force predicted. Indeed, it said
markets are likely to penalize companies that don't voluntarily provide such
results.
Intangible assets such as patents, technology licenses, customer lists,
business alliances, brand-name recognition and a highly skilled work force
aren't given sufficient recognition under current accounting rules, the task
force concluded.
Industry performance measures such as revenue per customer, inventory
turnover, order backlogs, and speed at introducing new products to market
also get short shrift under existing accounting rules, the task force added.
The report suggests lawmakers encourage companies to disclose this data
without fear of being sued, provided the information is clearly labeled and
the company doesn't intend to deceive.
"Intangible assets may seem esoteric, yet they are the reasons why many
companies attract investments in this information age," said House Financial
Services Committee chairman Michael Oxley, an Ohio Republican. In a
statement, Mr. Oxley said he supports voluntary disclosure of off-balance
sheet items such as intangibles, saying it will give investors "more accurate
information on which to base their financial decisions."
SEC officials had no immediate comment on the task-force recommendations.
Former SEC chairman Arthur Levitt asked Mr. Garten to create the task force
in October 1999, focusing on whether corporate financial reports provide
enough information to investors.
The group concluded that current disclosure, based on generally accepted
accounting principles, or GAAP, and quarterly and annual reports required by
the SEC, produces backward-looking documents showing past transactions that
offer little help for understanding where the company is headed in the
future.
To spur companies to provide more forward-looking information, the group
rejected the idea of more regulation, saying "a far better approach" would be
to make it easier and safer for companies to disclose information beyond what
appears in standard financial statements.
Adopting standard rules for reporting "soft" results would be difficult since
much of the missing information is specific to particular industries or
companies, the report noted, and rapid changes in economic and business
models would quickly make new rules out of date.
Mr. Garten's group acknowledged that without rules in place, companies might
tend to skew soft financial results, reporting only those that show the
company in a favorable light, or calculating them in a nonstandard way that
makes comparisons impossible. But the group said there is an easy fix to such
problems, asserting "market forces will penalize companies that provide
inadequate information relative to their peers."
The task force includes venture capitalist John Doerr; Rob Glaser, chairman
and CEO of RealNetworks Inc. (RNWK); Enron Chairman Kenneth Lay; investment
banker Peter Peterson; Cisco Systems Inc. (CSCO) controller Dennis Powell;
Professor Baruch Lev of New York University; Professor Joseph Stiglitz of
Stanford University; and Hal Varian, dean of the University of
California-Berkeley's School of Information Management and Systems.
Write to Judith Burns at judith.burns@dowjones.com
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved

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

BANDWIDTH BEAT: Video On Demand II May Have Happy Ending
By Michael Rieke
Of DOW JONES NEWSWIRES

05/22/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- The prospects for video on demand took a blow in March,
when a deal between Enron Corp. (ENE) and Blockbuster Inc. (BBI) fell apart.
The split not only broke up a partnership of giants in their fields, but also
revealed some of the inherent difficulties in getting the business going.
Nevertheless, transcontinental telecommunications networks like Williams
Communications Group (WCG) and Global Crossing (GX), as well as major studios
and even utilities, are still interested in providing the service. Once the
hurdles are cleared, video on demand has a shot at producing significant
revenue. Jason Bazinet, a senior research analyst in Internet infrastructure
services for J.P Morgan Securities, estimates the market could surpass $1.5
billion in revenue by 2005, with two-thirds of that growth in 2004 and 2005.
"We'll be ready," said Greg Onyszchuk, a vice president at Williams' Vyvx
Broadband Media unit. "And I don't think we'll be the only network ready."
The Blockbuster-Enron team-up sounded like a great idea when the two
companies announced it. Blockbuster is known for having videotapes of just
about every movie you'd want to see. Enron, always an innovator, promised to
move the videos across its long-haul fiber-optic network to local phone
companies, like SBC Communications Inc. (SBC), which would deliver them to
homes.
But there were problems. Blockbuster said Enron's network couldn't deliver
the quality needed for transmitting the large video files. And Enron said
Blockbuster, whose agreements with movie studios only cover videos rented
through its stores, couldn't deliver the content.
Those shortcomings point to the significant hurdles that remain before video
on demand, also called VOD, can be made viable. Studios Want In

As Blockbuster learned, major motion picture studios want a bigger piece of
the VOD action, and they're interested in cutting out middlemen between
themselves and viewers at home. Clearing that hurdle is trickier than it
sounds, even without getting into antitrust issues.
Interest by the studios is more rumored than publicly discussed. Still,
Onyszchuk believes all the major studios have VOD initiatives under way,
because they're already getting big revenues through rentals.
Individual studios can't pull it off on their own. The 20 to 25 most popular
movies account for a huge percentage of video rentals at any given time,
Onyszchuk said. Even two studios working together would still probably have
only seven to 10 of the Top 25 pictures, which isn't enough.
"If you want to be in the VOD business, you've got to have a current library
of hits," he said. "You need most of them."
Security is also a big issue for the studios, which want to be sure their
movies aren't pirated from a transmission network. A software program called
Divx is threatening to do for video what MP3 did for audio distribution via
the Internet. Once pirated, a video file can be burned on to a DVD disk and
distributed without paying royalties to the studios.
Paying users bring their own hurdles: Motion picture studios aren't set up to
handle billing and collection from subscribers. Retail End Underdeveloped

Problems also exist on the other end of the fiber. To be profitable, the
market needs 10 million to 20 million subscribers with high-speed Internet
connections, Onyszchuk said. Those volumes won't really be in place for two
years. Studies predict that 10 million homes will have high-speed connections
by the end of the year, with 20 million connections expected in the next
18-24 months.
Storage is another issue. When Enron and Blockbuster tested their VOD
service, movies were streamed directly from Los Angeles to individual homes.
That system can work when a transmission network is uncongested. But
long-haul transmission can develop glitches when there's heavy traffic on a
network - like that created by, say, 20 million VOD customers.
It makes more sense to have video files of movies in data storage centers in
the top 125 cities in the country, Onyszchuk said. Then they would have to be
transmitted only a few miles to local subscribers. But most data storage
centers are designed to store Web pages, files of 5,000-10,000 bytes. Movies
are much larger - 3 billion to 4 billion bytes.
VOD calls for terabit storage (that's 1 trillion bytes) in metro areas, he
said. Vyvx has a 100-terabyte data storage center in Tulsa, which Onyszchuk
said could handle hundreds of movies. Companies like Exodus Communications
(EXDS) and StorageNetworks Inc. (STOR) are deploying more data centers with
terabyte storage capacity to handle expected demand for services like VOD and
streaming video.
Aggregation at either end of the long-haul transmission networks could help
overcome some problems.
Aggregation of content at the studio end would make most if not all popular
movies available to subscribers. The model for VOD distribution would be
companies like Blockbuster, which aggregate distribution rights for movies on
video tape.
Aggregation at the other end of the networks could bring all subscribers into
the market whether they have high-speed cable-TV connections or high-speed
digital subscriber lines from phone companies.
Aggregation at the local level seems ideal for utilities that are getting
into the telecom sector. They have the billing systems and most if not all
the local customers needed to make the service work.
Two utilities, Reliant Energy Inc. (REI) and Potomac Electric Power Co.
(POM), have opened the door to future revenue from VOD.
Reliant Energy Inc. has invested in Grande Communications, which provides
Internet access, phone service and cable television. Potomac Electric and RCN
Corp. (RCN) have a joint venture, StarPower Communications, which provides
cable television service in the Washington, D.C., area.
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@wsj.com

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

USA: FERC sets Thursday conference on Calif natgas problems.

05/22/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, May 22 (Reuters) - Key players in the California power crisis
will address the Federal Energy Regulatory Commission staff at a special
conference on Thursday on the state's need for future natural gas supplies.
Executives with Enron Corp , El Paso Corp , PG&E Corp's Pacific Gas &
Electric , and Sempra Energy's Southern California Gas will make
presentations at the conference, FERC said on Tuesday.
The companies are among two dozen utilities, pipelines, marketers, and state
regulators scheduled to speak at the technical conference organized by FERC
staffers.
The technical conference will gather information and recommendations about
California's future demand for natural gas, projected interstate pipeline
capacity into California, interconnections between interstate and intrastate
pipelines, and how the intrastate pipeline capacity is allocated.
The conference will begin at 10 a.m. EDT (1400 GMT) on Thursday at FERC's
headquarters in Washington, D.C.
All participants were to submit copies of their presentations to FERC by
Wednesday, and the agency said it would publish the documents on its Internet
site.
Energy-starved California is facing an estimated 260 hours of blackouts this
summer, due in part to tight supplies of natural gas to fuel power plants.
A public opinion survey released on Tuesday found that California residents
are increasingly fearful of their state's energy crisis. Some 75 percent of
the 1,015 adults surveyed said they viewed the energy problem as "very
serious," up from 58 percent in January.
More than half of those surveyed said they believed the energy crisis was an
attempt by energy companies to boost prices, while one-third say they
believed there was a genuine shortage of electricity.

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

Enron Hires Consultants to Value Business in India, Paper Says
2001-05-22 22:51 (New York)

     Mumbai, May 23 (Bloomberg) -- Enron Corp. appointed two
consultants to value its Indian assets and businesses, including
Dabhol Power Co., as a prelude to its exit from the country, the
Business Standard reported, without identifying sources.
     Enron appointed Arthur Andersen LLP and Jones Lang LaSalle
Inc., to value properties and overall business in the country, the
paper said.
     On Monday, Enron pulled out of a $2 billion pipeline project
in Qatar as it became increasingly likely that its Indian power-
sales agreement will collapse.
     Last week Dabhol Power, owned 65 percent by Enron, served a
preliminary termination notice on India's Maharashtra State
Electricity Board to stop supplying power because it's owed 3
billion rupees ($64 million) by the board.


Thank you regarding Min.  He does an extreme amount of work for us and I believe going forward we will need more rather than less of Excel type reports.

Stacey

 -----Original Message-----
From: 	Nat, Steve
Sent:	Thursday, January 03, 2002 3:02 PM
To:	Gilbert, Scotty; Belden, Tim; White, Stacey W.; Will, Lloyd; Evans, Casey
Cc:	Zheng, Min; Kandaswamy, Bala; Stock, Steve
Subject:	NETCO IT Resources

All:  We had set aside slots on NETCO for two EES resources. (Pablo Pissanetzky and Kenny Ha)  Pablo and Kenny have opted to pursue other opportunities.  Min Zheng (Risk) and Bala Kandaswamy (VMS) will be shifted from ESTATE to NETCO.

Let me know if you have any questions or concerns.

Steve


Chris & Jeff --

Given your pending discussions, thought you should see this information.  Not
quite sure what SDG&E is up to here, but wanted you to be aware.  Jeff, don't
know what Mona is thinking about doing, but you may want to talk with her
about responses.

Jim

----- Forwarded by James D Steffes/NA/Enron on 10/09/2000 03:29 PM -----

	Mona L Petrochko@EES
	10/09/2000 02:59 PM

		 To: Gary Mirich/HOU/EES@EES
		 cc: Douglas Condon/SFO/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, West GA,
Harry Kingerski@EES, James D Steffes/NA/Enron@Enron, Joe Hartsoe@Enron
		 Subject: Re: SDGE represenatation of future market conditions

Gary,

Thanks for passing this information along.  This is a pretty well-documented
discussion, which is always helpful when we contact the utility about such
conduct.

Obviously, this is very concerning about SDG&E counter-marketing, while
promoting choice.  In addition some of their assumptions seem to require
tremendous leaps of faith.

I haven't seen an application to aggregate yet, but I would assume there
would be heavy protests to such a proposal.  (SDG&E solicited my feedback on
such a position, and I told them we weren't interested.)

I'm not sure what type of ruling they are expecting from FERC, lower price
caps or a return to cost-based rates (pretty extreme).  Decision, per Sue
Mara, is not expected until December.

SDG&E does have bilateral contracting authority and at least thus far has not
exercised it.

Customers have already experienced what "leaving it to SDG&E" will get them.
Once bitten, twice shy.

	Enron Energy Services

	From:  Gary Mirich                           10/09/2000 12:03 PM
	Phone No: 602-840-3800

To: Mona L Petrochko/SFO/EES@EES
cc: Douglas Condon/SFO/EES@EES, Martin Wenzel/SFO/HOU/EES
Subject: SDGE represenatation of future market conditions

Mona, I thought you should have the following information due to your ongoing
work with SDGE to
facilitate open market choice by their regulated customers.

As you know I've been working with SAIC to close business for the last 60
days. We had
offered them a 26 month price on 50% of their load for approximately 7.5
cents/kWh. They compared
our offer(s) to others that were significantly higher.  As part of their
decision-making process, and in an
attempt to confirm that SDGE wasn't preparing to release any kind of drastic
rate reduction/relief in the
immediate future, SAIC's treasurer called SDGE's CEO for a meeting with an
SDGE exec.

On 9/27, SAIC's treasurer Dan Baldwin met with SDGE's SVP of Fuels and Power
Ops, Gary Cotton. Another
SAIC exec, Rene Terrazas, VP Real Estate, was also in that meeting. He is my
source for the following
comments from SDGE:

1).  SDGE expects to be given authority very soon to aggregate customers,
much like direct access
providers, in order to provide better-than-market pricing.

2). SDGE expects FERC to "come out with something" that will reduce the
prices that retail standard
offer customers are paying. No detail from SDGE on what form FERC's action
would take or when.

3). SDGE's recent bilateral contracting authority should result in lower
prices for SAIC.

4). SDGE suggested that very few customers have switched to DA because their
is too much
uncertainty about the future.  He said that SAIC is part of 97% of SDGE's
customers that have
not switched to date.

5). This SDGE exec said he thought that prices would soon return to a more
reasonable
level, and that SAIC should be expecting direct access prices around 5
cents/kWh.

Even though SAIC currently suffers from analysis-paralysis, SDGE's comments
about the state of the market
are very concerning.  First, pawning off SAIC to an exec in fuels and ops for
advise about the retail open
market hardly seems appropriate.  Second, SDGE's suggestion to SAIC that they
are somehow in good
company by waiting is directly in contrast to what SDGE's regulatory affairs
people are attempting to
promote with the supplier selection initiative.

Third, for SDGE to even hint that there are regulatory (FERC, CPUC, or
otherwise) "fixes" soon to be
announced that will relieve SAIC's pricing dilema is at the very least
irresponsible.  In Rene's opinion
the SDGE exec was using the same old "fear, uncertainty, and doubt" lines
that utility execs typically
employed prior to direct access in their efforts to retain customers!

Finally, and most concerning to me, is that SDGE has an executive willing to
make a guess about the
price SAIC should be expecting to receive in this market.  Many market
sources (eg: Bloomberg) besides
Enron wouldn't predict a price as low as 5 cents. Nevermind that Mr. Cotton
is likely unqualified to make
such a claim, but even if he was, I think he is way off base for even
entertaining the question.

In light of our efforts to work with SDGE to facilitate customer transition
to DA, I think these comments
indicate that their executive team is not truly on board with the work of
SDGE's regulatory affairs.  EES is
in a "stand down" right now with SAIC, who decided after their meeting with
SDGE that Enron's offer
may not be as competitive as previously believed.  Their treasurer has
decided to wait and see - perhaps
a month or more.

Irrespective of my ability to close this deal today or in the future, I
wanted you to be aware
of the SDGE's comments and how they've impacted one SDGE customer's decision
to "leave the utility".
Perhaps we should suggest that customer inquiries like those of SAIC go
through regulatory affairs
instead of execs who have twisted and/or minimal information and a
willingness to guess about the future.

Your comments welcome.
thanks much
Gary.


We received the executed EEI Master Power Purchase and Sale Agreement dated 7/26/01 from the referenced CP.  A copy will be scanned into Livelink.


NOTE:  YOU WILL RECEIVE THIS MESSAGE EACH TIME YOU ARE SELECTED AS A REVIEWER.

You have been selected to participate in the Year End 2000 Performance
Management process by providing meaningful feedback on specific employee(s).
Your feedback plays an important role in the process, and your participation
is critical to the success of Enron's Performance Management goals.

To complete requests for feedback, access PEP at http://pep.corp.enron.com
and select Perform Review under Performance Review Services.  You may begin
providing feedback immediately and are requested to have all feedback forms
completed by Friday, November 17, 2000.

If you have any questions regarding PEP or your responsibility in the
process, please contact the PEP Help Desk at:

Houston: 1.713.853.4777, Option 4
London:  44.207.783.4040, Option 4
Email: perfmgmt@enron.com

Thank you for your participation in this important process.

The following is a CUMULATIVE list of employee feedback requests with a
status of "OPEN."   Once you have submitted or declined an employee's request
for feedback, their name will no longer appear on this list.

Review Group: ENRON
Feedback Due Date: Nov 17, 2000

Employee Name                   Supervisor Name                 Date Selected
-------------                   ---------------                 -------------
BROWN, WILLIAM W                LOUISE KITCHEN                  Nov 02, 2000
BRUCE, DANIEL                   PHILIPPE A BIBI                 Nov 10, 2000
DETMERING, TIMOTHY J            JEFFREY M DONAHUE JR            Oct 31, 2000
DONAHUE JR, JEFFREY M           DAVID W DELAINEY                Nov 15, 2000
DOSHIER, RAYMOND W              KEVIN P HANNON                  Nov 13, 2000
FITZGERALD, JAY L               LOUISE KITCHEN                  Nov 13, 2000
GARNER, BRUCE                   LOUISE KITCHEN                  Oct 27, 2000
GROS, THOMAS D                  LOUISE KITCHEN                  Nov 13, 2000
HICKERSON, GARY J               JEFFREY A SHANKMAN              Nov 15, 2000
MCCLELLAN, GEORGE               JEFFREY A SHANKMAN              Nov 15, 2000
MCMAHON, JEFFREY                MARK A FREVERT                  Oct 31, 2000
NOWLAN JR, JOHN L               JEFFREY A SHANKMAN              Nov 16, 2000
PIPER, GREGORY F                LOUISE KITCHEN                  Nov 14, 2000
SHANKMAN, JEFFREY A             MICHAEL S MCCONNELL             Nov 16, 2000
ZIPPER, ANDREW A                LOUISE KITCHEN                  Nov 13, 2000


Thanks for the joke, it provided me with a well needed chuckle (You and
Darren definitely have too much time on your hands).  As for the hat/casual
western theme, we are going to have to go to make a trip to Blanco's or Tin
Hall sometime so I can don the full regalia.


-----Original Message-----
From: Rodriquez, Andy
Sent: Thursday, October 18, 2001 4:46 PM
To: Black, Tamara Jae; '/o=ENRON/ou=NA/cn=Recipients/cn=notesaddr/cn=a478079f-55e1f3b0-862566fa-612229'; Abler, William; Aggarwal, Anubhav; Allen, Diana; Arora, Harry; Bailey, Debra; Ballato, Russell; Ballinger, Ted; Baughman Jr., Don; Benchluch, Moises; Benjelloun, Hicham; Benson, Robert; Bentley, Corry; Blaine, Jay; Bolt, Laurel; Broderick, Paul J.; Broussard, Richard; Burnett, Lisa; Campbell, Larry F.; Capasso, Joe; Carson, Mike; Chen, Alan; Choate, Jason; Cline, Kevin; Collins, Dustin; Comeaux, Keith; Coulter, Kayne; Davis, Mark Dana; Day, Smith L.; Dean, Clint; Decook, Todd; Emesih, Gerald; Errigo, Joe; Forney, John M.; Freije, William; Garcia, Miguel L.; Gilbert, Gerald; Gilbert-smith, Doug; Giron, Gustavo; Greer, Andrew; Gualy, Jaime; Guerra, Claudia; Gulmeden, Utku; Gupta, Gautam; Ha, Amie; Hanse, Patrick; Hernandez, Juan; Imai, Rika; Ingram, David; Jenkins IV, Daniel; Kaniss, Jason; King, Jeff; Kinser, John; Larkworthy, Carrie; Laurent, Dean; Laverell, Justin; Lenartowicz, Chris; Lorenz, Matt; Lotz, Gretchen; Lowell, Thomas; Mack, Iris; Mahajan, Ashish; Makkai, Peter; Marquez, Mauricio; Maskell, David; May, Tom; McElreath, Alexander; Miller, Jeffrey; Oh, Seung-Taek; Olinde Jr., Steve; Pace, Andy; Padron, Juan; Pan, Steve; Philip, Willis; Podurgiel, Laura; Poppa, John D.; Presto, Kevin M.; Quenet, Joe; Rawal, Punit; Rogers, Benjamin; Rust, Bill; Ryan, David; Saibi, Eric; Schiavone, Paul; Schneider, Bryce; Seely, Michael; Serio, Erik; Shoemake, Lisa; Simpson, Erik; Stalford, Robert; Stepenovitch, Joe; Sturm, Fletcher J.; Symms, Mark; Tamma, Ramanarao; Thomas, Paul D.; Trejo, Reese; Valdes, Maria; Vernon, Clayton; Wang, Steve; Williams, Ryan; Willis, Cory; Zipperer, Mike; Baughman, Edward D.; Clynes, Terri; Dalton III, Oscar; Kelly, Mike E.; Sewell, Doug; Valderrama, Larry; Walton, Steve; Roan, Michael; Perrino, Dave; Maurer, Luiz; Hueter, Barbara A.; Landwehr, Susan M.; Hoatson, Tom; Novosel, Sarah; Nicolay, Christi L.; Yeung, Charles
Subject: RE: RTO Week -- Summary of Standards and Practices Panel

RTO Week

 <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Day 4 - October 18, 2001

Afternoon Session

Standardizing Markets, Business, and Other Practices

Panelists for this discussion were:  Sarah Barpoulis, PG&E National Energy Group; William P. Boswell, GISB; Bill Burkes (substituting for David J. Christiano), City Utilities of Springfield, Missouri; David N. Cook, NERC General Counsel; Michael Kormos PJM Interconnection; LeRoy Koppendrayer, Minnesota Public Utilities Commission; and Marty Mennes, Florida Power & Light Company.

General Observations

The Commissioners were all present the majority of the time (Massey left late in the  afternoon).  FERC Staff was active in the discussion; however, the commissioners were very active as well, asking perhaps as much as 70% of all questions.  There was a general consensus that standards were needed; much discussion focused simply on how much and by who. The Commission seemed very interested in leaning what they needed to do to move the industry forward and how far they needed to go.  Panelists urged the need to mover forward as quickly as possible, but both they and FERC seemed to recognize that some of the issues regarding standardized market design and such needed to be addressed before RTOs could really begin to move forward.  There was discussion on identifying which industry group (NERC or GISB) would take the reins in the future.  On an interesting tangential note, there was noticeable conflict between NERC and GISB, with veiled insults between the two organizations somewhat common during the discussions.

FERC Deliverables

A great deal of the discussions focused on identifying what the industry needed from the Commission.  Staffers probed all panelists to find what they felt was critical.

The first major topic was "How many RTOs?  What is their scope?"  All panelists seemed to agree that this question needed to be answered immediately by FERC, in strong definitive language.  N o one offered any specific language, but seemed to be urging FERC to issue a formal statement.

The next topic was, "What will be standard market design?"  Panelists varied on this, but most felt strong guidance from FERC is urgent.  Some urged for one mandatory design for North America, one supported a set of rigid standard designs, one supported a single design with requests for exceptions (followed by an in-depth review process), and one seemed to prefer the current situation.

The commission in general seemed to be very interested in understanding what the industry needed to move forward.  They continually visited this topic throughout their discussions, asking questions like, "Do we need to issue a Mega-Order that addresses all these issues?" and, "How much detail do you need us to provide?"   General feel from the panelsists seemed to be they wanted strong leadership in this areas.  Kormos and Burkes went so far as to say FERC should "Mandate as much as they felt comfortable - and then go a little further."  Others seemed to be a little worried about this idea, but in general did not oppose the concept, citing only general warnings and the need for cautious investigation.

One item of interest: Wood referred to the filing made by the Electronic Scheduling Collaborative and specifically asked if the items identified in the "RTO Design and RTO Implementation" section would address many of the questions and uncertainty facing the industry with regard to RTO design.  Kormos indicated that clear and specific answers to these questions specifying a course of action would go a long way toward guiding the industry.  The section to which Wood referred was one that I wrote, and asked the following questions:

?         Congestion Management - When Operational Security Violations occur, how is the system to be stabilized in a fair and equitable manner that is nonetheless efficient?  Will LMP based systems be standard, or will there be others that must be accommodated?

?         Transmission Service  - Are transmission services required to schedule ("covered" schedules only), or are they risk management tools protecting from congestion charges (both "covered" and "uncovered" schedules are allowed)?

?         Loop Flows  - Are contract-path based or flow-based transmission services appropriate?  If contract-path based, how are parallel path issues to be addressed?

?         Grandfathered Transmission Service - Should contracts existing prior to RTO development be transferred, or is there an equitable way to retire those contracts?  Are there other solutions?

?         Energy Imbalance Markets - How are imbalance markets to function? Will they serve as real-time energy markets (support unbalanced schedules), be limited to supplying needs of imbalance service (require balanced schedules), or will they be required at all?

?         Ancillary Services - Will ancillary service markets be developed in standard ways?  Will entities be required to actually schedule ancillary services (required to schedule), or will they be treated primarily as financial instruments (protecting against real-time POLR charges)?

?         Losses - Can we utilize the imbalance markets to support losses?  Can we create specific loss standards that facilitate the scheduling process, or must we support methods that are currently in tariffs, but technically unwieldy?

?         Non-Jurisdictionals - How are non-jurisdictionals to be integrated into the new world?  Should systems be designed with the assumption that non-jurisdictional will be part of an RTO?  Or should they be designed to treat each NJE as a separate entity?

Hopefully, FERC will use this section as a template to answer these critical questions in an assertive manner, and give some solid direction in which to move. Kormos emphasized the need for concrete answers to these questions, pointing out that vague answers (i.e., "do congestion management") will take a year or two to resolve, but specific answers (i.e., "LMP with financial hedging instruments") will take only months.  The Commission asked Mike about moving forward, and he told them that effectively, it was impossible to move forward with implementation without getting these issues addressed.

Now for a  funny point - One of the commissioners (I think Breathitt) referred to some concerns expressed in the Northwest that their high concentration of hydro power makes LMP inefficient for the Northwest.  Kormos flat out said, "My profession is understanding how power systems work, and I don't believe that that statement is true."  He then backpedaled a bit and said that it would need more study, but he stood by his statement that the assertion by the Northwest interests was false.

NERC and GISB

A great deal of discussion focused around the need for a single standard-setting organization.  Massey went so far as to ask, "Are we looking at a beauty contest between NERC and GISB?"  Cook and Boswell then went into several short polite jabs at each other's organizations.  Other participants continually reiterated the need for ONE, INDEPENDENT organization.  Interestingly, Boswell was very emphatic about the established trust and respect in GISB, while Cook preferred to only talk about the "new" structure of NERC and did not focus on its history.

Brownell offered some not-too-subtle passive support of GISB by pointedly asking both Cook and Boswell if they lobbied political positions (i.e., were they not only an organization but also a stakeholder?).  GISB was easily able to say they were not, but NERC of course had to admit to their romancing of Congress and the Bush administration for reliability legislation. Point, Brownell.

Mennes acted as somewhat of a supporter for NERC, playing Dave Cook's yes-man.  He probably did them a little bit of harm by pointing to NERC's supposed "successes," such as TLR and E-Tag.  If staffers have tenure, they will likely remember that these "successes" have not been so successful, resulting in several filings and interventions.  We may also wish to file comments in specific objection to these claims, to refresh their memory and to show the pretty picture Marty painted was in fact a fiction.

There was a little discussion about splitting reliability and market issues, but general consensus was that I could not be done.  There was also some talk of folding NERC under GISB/EISB.

The arguments began winding down after a some time, and Boswell strongly urged the Commission to speak to industry executives and advocacy group leadership to see whether NERC or GISB should lead the industry forward.  NERC somewhat less enthusiastically supported this position.  In general, I would say it was a close fight but GISB came out more on top.

Let me know if you have any questions.

Andy Rodriquez
Regulatory Affairs - Enron Corp.
andy.rodriquez@enron.com
713-345-3771


- 12_26_01ON.xls


Change the language on Operations to include ...Coordination of Service and Planning for Transmission ...

Thanks,

Jim
 -----Original Message-----
From: 	Leboe, David
Sent:	Monday, October 15, 2001 10:55 AM
To:	Steffes, James D.; Nicolay, Christi L.
Subject:	Final (almost) RTO's slide

Thanks for last week's feedback on the RTO slide.  We would like to go with the following slide assuming you are OK with content.

Please let me know if you are OK with the slide.

Thanks.

 << OLE Object: Picture (Metafile) >>

David T. Leboe
Director, Investor Relations
Enron Corp.

Office  713.853.4785
Cell  713.562.2160
Fax   713.646.3002
Pager  877.237.7732
david.leboe@enron.com


this announcement has not gone out for that reason.  we have had a number of
discussions about it since this was drafted and there seems to be some
concern about it being inside one of the business units since it is supposed
to handle investments across the company and would be bringing the EBS assets
with it.  your suggestion that it might report to andy has some merit, but
there may be other options.  what would you think if we established an
investment committee consisting of me, rice, and delainey and made garland
responsible to that group.  we would have all of the relevent business units
represented and the p&l would ultimately be allocated to the one in which the
investment originated.  do you think that would work?  it might go a long way
to satisfying all constituents.

From: Mark Frevert/ENRON@enronXgate on 06/06/2001 03:17 PM
To: Greg Whalley/HOU/ECT@ECT
cc:
Subject: RE: Draft of Organizational Announcement

I Shouldn't Kevin report into the OTC for wholesale as we discussed?  Mark
 -----Original Message-----
From:  Whalley, Greg
Sent: 04 June 2001 12:21
To: Frevert, Mark
Subject: FW: Draft of Organizational Announcement

---------------------- Forwarded by Greg Whalley/HOU/ECT on 06/04/2001 12:19
PM ---------------------------
From: Kevin Garland/ENRON@enronXgate on 06/03/2001 11:08 PM
To: Greg Whalley/HOU/ECT@ECT
cc: Liz M Taylor/HOU/ECT@ECT
Subject: FW: Draft of Organizational Announcement

This has been reviewed by HR and Gene Humphrey.  Please respond with any
comments.  It is intended to go out on Tuesday at noon.  I will have the
reorg group meeting Tuesday morning.

KG

Announcing the Formation of One Corporate Equity Investing Unit

To better develop and manage equity investment opportunities related to our
core businesses, Enron has formed one corporate equity investment unit.  This
new unit, Enron Principal Investments, will combine the existing investment
units of ENA, EBS and Enron Investment Partners.  Additionally, the Enron
Wholesale Restructuring Group will also become part of Enron Principal
Investments.  The strategy of Enron Principal Investments will be to work
with the all the business units of Enron to identify, execute, and manage
equity investments, which leverage the Enron's unique and proprietary
knowledge.   These investments may be in the form of venture capital, LBO's,
traditional private equity and distressed debt positions.

Kevin Garland will serve as Managing Director of Enron Principal Investments,
overseeing all of its activities.  Gene Humphrey, Michael Miller, Richard
Lydecker, and their groups, will join Kevin and his group to form this new
investments unit.

This new investment unit will report to Greg Whalley, in his capacity as an
Enron Policy Committee member.  Please join me in congratulating and
supporting Kevin, Gene, Michael, Richard and the other members of this group
in this effort.

Jeff Skilling


Read about Enron's entry into the data storage market.

Also in this issue:
Sizing up EnronOnline's competition
Brazil's new merchant plant
EBS sponsors Sundance

It's all in the latest eBiz.  Go to home.enron.com, click Publications, then
click eBiz, and "eBiz February 2, 2001."


In staff meeting today, Rick asked that you help in identifying employees by
Job Function.  On this first pass we need each of you to send us a list with
the number of employees for each job function.   I have attached a file for
you to drop the # of employess into each catagory and a description of the
job functions.  This list is needed by Thursday, April 12 at noon.  Please
send the list to me and copy Mark Lindsey.

Also, please begin the process of identifying those employees in each Job
Function.  This list will be need by Wednesday, April 18.  Once again, please
send to me and copy Mark Lindsey.

If you have any questions please call me at x37094 or Mark Lindsey at x31873.


Off the internet:

	FuelCell Energy Announces Two Contract Awards
Thursday, November 2, 2000 07:07 AM	?Mail this article to a friend
	DANBURY, Conn.--(BUSINESS WIRE)--Nov. 2, 2000--
	New, Specialized Applications for Direct FuelCell(TM) Power Plants
	FuelCell Energy, Inc. (NASDAQ: FCEL, news, msgs) announced the award of
contracts for two new power plants using the company's Direct FuelCells(R)
(DFC(R)) for coal mine and remote location applications. The first contract
is for a $5.4 million project with the U.S. Department of Energy (DOE)
National Energy Technology Laboratory (NETL) for the design, construction and
operation of a 250 kW DFC, utilizing coal mine methane gas, at the Harrison
Mining Corporation coal mine in Cadiz, Ohio. The second contract, for
$100,000, is from the U.S. Coast Guard Research and Development Center in
Groton, Connecticut for a remote location, 3 kW fuel cell power system, using
methanol for fuel. It is scheduled to be installed during the second quarter
of 2001 at the Cape Henry Lighthouse at Fort Story, near Virginia Beach, VA.
	Coal Mine Methane: Cost-Free Fuel Reduces Emissions
	FuelCell Energy was selected for the coal mine methane emission reduction
project to demonstrate the ability of the DFC to generate electricity, using
coal mine methane emissions that otherwise escape into the atmosphere. Costs
for the three-year program will be shared equally by the DOE and FuelCell
Energy. As a result, in addition to the environmental benefits of reducing
emissions, the cost of electricity produced from coal mine methane is reduced
by using a fuel that is essentially free.
	"The DOE has been supporting the development of fuel cells for more than two
decades," said Mark C. Williams, fuel cell product manager for NETL. "This
application to coal mine methane effectively combines efficient power
generation with a solution to mitigate greenhouse gas emissions."
	According to FuelCell Energy, 75% of the world's coal mine methane emissions
from active and abandoned coal mines comes from the top six countries with
coal mining operations. A total of approximately 1,000 megawatts of fuel cell
power could be generated using coal mine methane from the two sources. The
U.S., alone, has approximately 300 megawatts of unutilized coal mine methane
capacity. At an estimated $1,000 kW, the 1,000 MW worldwide potential for
FuelCell Energy fuel cell power plants is equivalent to a $1.0 billion
market.
	"The use of coal mine methane to power Direct FuelCells will result in
benefits for all concerned," said Jerry D. Leitman, president and CEO of
FuelCell Energy. "Coal mine methane is a greenhouse gas which can be
remediated. By using it to fuel a DFC power plant, a customer turns a
liability into an asset that gets rid of a polluting gas and produces
electric power in an environmentally responsible fashion. An important
milestone for the company is to identify prospective early-adopter markets.
The coal mine methane market provides a virtually free fuel source to operate
the fuel cells, facilitating early adoption by energy users."
	Remote Power: Clean Energy Where the Wires End
	The U.S. Coast Guard Research and Development Center has awarded FuelCell
Energy a $100,000 contract to provide a 3 kW DFC power plant at the Cape
Henry Lighthouse, for a field test at the lighthouse to demonstrate fuel cell
capabilities at remote sites. The Coast Guard operates several hundred
unattended power systems at remote site communication stations, radio
navigation stations, weather stations, and aids to navigation such as
lighthouses, structures, and buoys. Stand alone fuel cell power systems offer
efficiency and environmental advantages for remote site operation. The
methanol fuel allows for simpler, more compact process equipment for FuelCell
Energy's Direct FuelCell plant compared to other fuel sources.
	"This demonstration project by FuelCell Energy is the first application of
fuel cells at a remote, unmanned site in a marine environment", said Walt
Lincoln, project manager of the U.S. Coast Guard Research and Development
Center. "We're interested in the potential of the fuel cell because of its
promise of reduced maintenance and greater reliability compared to other
systems."
	"In addition to the unattended applications for the Coast Guard, there are
other potential remote power applications in operation around the world, such
as pipeline monitoring, microwave relay stations, and numerous other
communications and recreational uses that could be served by fuel cells,"
said Leitman.
	Using carbonate fuel cell technology, the DFC(R) power plant produces high
efficiency energy through an electro-chemical reaction, rather than through
combustion. This method of producing power gives energy users the option of
producing electricity on site with the assurance of lower emissions, less
noise and with shorter timeframes required for the permitting process.
	About FuelCell Energy, Inc.
	FuelCell Energy, Inc. - www.fce.com - formerly Energy Research Corp., is a
leading developer of carbonate fuel cell technology for stationary power
generation. The Company's Direct FuelCell technology eliminates external fuel
processing to extract hydrogen from a hydrocarbon fuel. This results in a
product whose cost, combined with high efficiency, simplicity and
reliability, results in product advantages for stationary power generation.
FuelCell Energy, based in Danbury, CT is developing Direct FuelCell(R) power
plants with nominal ratings of 300 kW, 1.5 MW and 3 MW.. The Company has been
developing DFC(R) technology for stationary power plants with the U.S.
Department of Energy through the National Energy Technology Laboratory
(NETL). The NETL's advanced fuel cell research program is focused on
developing a new generation of high performance fuel cells that can generate
clean electricity at power stations or in distributed locations near the
customer, including hospitals, schools, data centers and other commercial and
industrial applications.


Scott Goodell said the Sonat items look correct.  The other items are for the
Central Desk and I don't know who looks at it.  It's probably ok since the
Central Desk items are more straight forward.

Darla Saucier@ENRON
02/01/2001 11:47 AM
To: Chris Germany/HOU/ECT@ECT
cc:
Subject: New Power

Please take a look at these prior period adjustments that came across in
Unify this month.  Should I forward these invoices to New Power?

Thanks!


Kay,

Here is the draft form of the contract I spoke to you about on Friday.  I've also sent this to the contract administrative group.  If this draft is ok to use, I believe the only thing we have to add to this is the 'PSA'.  We could consider this document as our 'Scope of Work' or 'Statement of Work'.

I'll be out of the office on Monday, however you can reach me by cell, 713-516-7582  or tex pager 888-662-8505.

Thanks,

Brenda Bonhame Manager OSP
Enron Broadband Services
(O)713-345-1930
(P)888-662-8505
(M)713-516-7582


Correction:  that should be Rick Hill, not Rich

---------------------- Forwarded by Mark McCoy/Corp/Enron on 09/01/2000 09:31
AM ---------------------------

Mark McCoy
09/01/2000 09:26 AM
To: Pat Clynes/Corp/Enron@ENRON, Daren J Farmer/HOU/ECT@ECT, Stacey
Neuweiler/HOU/ECT@ECT
cc: Rita Wynne/HOU/ECT@ECT

Subject: Cornhusker for Sept

I was informed by Nancy Stivers at Tenaska that Rich Hill with Enron called
Tenaska and requested that they continue to handle the nominations and
accounting for Cornhusker through September.  Have you heard this?


G,

I am coming to Spring on Friday. I will hook up with you on Saturday. What
time is the game and what's going on with the stadium?

GT

-----Original Message-----
From: Nemec, Gerald [mailto:Gerald.Nemec@ENRON.com]
Sent: Tuesday, September 18, 2001 2:08 PM
To: gtownsend@manorisd.net
Subject: What Up?

Hey GT,  When are you coming to H-town?

**********************************************************************
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.
**********************************************************************


Kate Symes
Trading Support
503-464-7486


Here is a final itinerary.  Please let me know if you have any questions.

Tori L. Wells
Executive Assistant
Office of Ken Lay
Chairman & CEO
ENRON


<<...OLE_Obj...>>

"1st Monthly Happy Hour"

@
The State Bar & Lounge
Downtown Houston
909 Travis
  (between Texas and Prairie)

Thursday, May 10
5pm - 8 pm

So come down, bring a colleague
and join us for Complimentary Food and Drink!!

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Kay,

Item 4 - of the Beck comments

The "must run" condition is when Entergy calls up and declares an emergency,
Clarksdale has to generate or they have no power.

In a previous version of the LOI David and I had the following language:

Profit from external sales of The Cities, power and gas resources and savings
realized by purchase of on-peak market power would be split 60% to The Cities
and 40% to EPMI except under first contingency 32 MW &must run8 conditions.
If not already running, &must run8 periods will be excluded from the profit
loss calculation.

Something like this could go und the Structure section as item D following
the "EPMI would be compensated..." sentence which should be item C.


FYI - Today will be my last full day in the office.  I plan to work at least
partial days from home until the baby arrives, monitoring e-mail and working
on a few ongoing projects, and will be reachable at the numbers listed
below.  Once I head for the hospital I'll change my voicemail to indicate
that I'm out of service for a while, and will reference the people who will
be responsible for the various activities in my group.

Home phone:  281-528-6606
Home fax:  281-288-0277
Pager:  888-740-9948
Cell:  713-417-9188

Unless something happens between now and then, I plan to be on Steve's staff
call on Friday morning at 9:30, and will hold a Info/Admin staff call on
Friday morning at 11:00.  (Clerical staff don't need to be on that call.)
(Gus - Please set up this conference call.)

Thanks!