Enron Prepares To Become Easier to Read
The Wall Street Journal, 08/28/01
The State PG&E's Power Bill May Go Up Energy: The PUC wants to shift some of the state's cost of buying electricity away from Edison. It also proposes a 12% rate hike for SDG&E.
Los Angeles Times, 08/28/01

Enron Names Whalley, Frevert to Chairman's Office (Update1)
Bloomberg, 08/28/01

USA: Enron names Greg Whalley president, COO.
Reuters English News Service, 08/28/01
Enron Names Greg Whalley President, Oper Chief
Dow Jones News Service, 08/28/01
INDIA PRESS: Fincl Cos Look For Enron Stake Buyers
Dow Jones Asian Equities Report, 08/28/01
Enron denies seeking sanctions over Dabhol
The Times of India, 08/28/01
Markets / Your Money Stocks Ease After Friday's Big Gains Markets: NYSE trading is light. Among commodities, natural gas prices see 18-month lows.
Los Angeles Times, 08/28/01
Vignette Rises as eBay, Yahoo Fall Amid Seesaw Day for Tech Stocks
The Wall Street Journal, 08/28/01
Enron works to shore up confidence
Houston Chronicle, 08/28/01

Heard on the Street
Enron Prepares To Become Easier to Read
By Rebecca Smith and John Emshwiller
Staff Reporters of The Wall Street Journal

08/28/2001
The Wall Street Journal
C1
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Can a humbler, more-informative Enron refuel investor enthusiasm?
That's the hope of Kenneth Lay, founder and chairman as well as the once and once-again chief executive of this Houston energy and trading company. Enron has been regarded as one of the nation's most innovative -- though bedevilingly complicated -- companies. Mr. Lay acknowledges that Enron, which grew into a colossus over the past decade with a hard-charging, in-your-face management style, has "lost some credibility" with the investment community.
"I want to make sure we restore that credibility," he said in an interview last week.
He promises fuller disclosures, and Enron has a lot riding on whether investors find them sufficient -- and soothing. Last summer, the company's stock price hit $90 a share, giving Enron a dazzling price-to-earnings ratio exceeding 60. As of 4 p.m. in composite trading yesterday on the New York Stock Exchange, Enron was at $37.76, up $1.41, sporting a more-conventional P/E ratio of about 21 times this year's expected earnings.
The stock slide has multiple causes, including uncertainty about trading profits, due to the slower economy and a drop in energy prices as well as mounting concerns about the difficulty that investors face in figuring out how the company's extremely complex operations make money.
Layer on management turnover. Earlier this month, Enron lost its chief executive when Jeffrey Skilling, Mr. Lay's longtime lieutenant and handpicked successor, unexpectedly resigned after only about six months in the top job. The 47-year-old Mr. Skilling was widely credited with helping to build Enron into the nation's leading energy trader and personified the company's brash manner. During an investor conference call in April, for example, when a caller criticized Enron's schedule for releasing financial information, Mr. Skilling responded by calling him an "ah." Mr. Skilling, who is on a river rafting trip, couldn't be reached for comment but others at the company, including Mr. Lay, say it was an unfortunate word choice that continues to haunt the company. At the time, Mr. Skilling said he regretted if anyone was offended by his remark.
Though Mr. Skilling initially said his resignation was strictly for personal reasons, he added in a later interview that his own feelings of failure over the plummeting stock price had contributed greatly to his early departure. The 59-year-old Mr. Lay resumed the chief executive's job that he had previously held for 15 years.
Jeff Dietert, an analyst from Simmons & Co. International in Houston, figures that Enron's P/E is likely to be permanently lower, though still somewhat higher than the average for its peer group. Mr. Dietert views Dynegy as the premium energy stock, which will fetch the highest trading multiple.
While Mr. Lay insists that Enron's overall operating and financial condition is very strong, the unexpected exit of Mr. Skilling has some wondering if "there isn't another shoe about to drop," says Carol Coale, an analyst at Prudential Securities.
To lessen such concerns, Mr. Lay promises to address the longtime analyst and investor complaint that Enron doesn't provide enough information about its extremely complex operations, which include not only construction of natural-gas pipelines and power plants but the trading of an ever-expanding array of commodities. Nowadays, Enron trades everything from telecommunications capacity to weather-linked derivative contracts.
"I truly do not understand all their financial arrangements, and I've sent information on their deals to accountant friends and they don't understand them either," says Rebecca Followill, an analyst at Howard Weil, who refers to Enron's accounting methods as a "black box."
Yet analysts long put out buy recommendations on Enron stock, in large part because the company has issued consistently strong earnings. In 2000, for example, the company reported net income rose 10% to $979 million on revenue that more than doubled to $100 billion. Assets over the past five years more than quadrupled to about $65 billion.
"When the stock price and earnings were going up so quickly, less attention was paid to the quality of earnings," says Zach Wagner, an analyst at Edward Jones in St. Louis. With the stock price down, "Enron has to show that they do have quality earnings. The only way to do that is to open up the books," he says.
Mr. Lay says Enron will start putting out more detailed information on individual business segments and "give a better idea of the profitability of various businesses" such as its wholesale-services category where a lot of business activities gets lumped.
In another bow to criticism, Chief Financial Officer Andrew Fastow as of July 31 quietly ended his ownership and management ties with certain limited partnerships. Over the past two years, Enron has placed billions of dollars of assets and millions of shares of its stock into complex transactions with these partnerships. Enron executives say the transactions were perfectly proper and that the company asked Mr. Fastow to take part in the deals, which were done to reduce the risk of fluctuating market prices. An Enron spokesman says Mr. Fastow has no comment on the matter.
Yet some analysts say they have been concerned about having Enron's top financial executive in a fiduciary position at entities that, at least potentially, stood to gain if the company lost in the transactions -- and vice versa. Mr. Lay says the transactions involving Mr. Fastow had become a "lightning rod" for criticism so "we're better off not doing it."
Of course, it's still a challenge trying to make sense of these transactions. Consider the following snippet from Enron's second-quarter report concerning some Fastow-related deals: "Enron has entered into agreements with entities formed in 2000, which included the obligation to deliver 12 million shares of Enron common stock in March 2005 and entered into derivative instruments which eliminated the contingent nature of existing restricted forward contracts executed in 2000. . . . In exchange, Enron received notes receivable from the Entities totaling approximately $827.6 million. In addition, Enron entered into share settled costless collar arrangements with the Entities on the 12 million shares of Enron common stock. Such transactions will be accounted for as equity transactions when settled. Enron received a $6.5 million note receivable from the Entities to terminate share-settled options on 7.1 million shares of Enron common stock. The transactions resulted in noncash increases to noncurrent assets and equity."
Reading Enron's financial statements can make "you kind of step back and say, `What?'" says Jeff Dietert, the analyst at Simmons.
Enron faces challenges beyond just financial opaqueness. It is owed $500 million for power delivered to California's troubled utilities -- a much bigger unpaid tab than analysts originally believed. In India, Enron is having difficulty getting paid for electricity from its 65%-owned, $3-billion Dabhol power project because of a dispute with government officials over power prices. Mr. Lay says Dabhol is among the approximately $5 billion in overseas assets that Enron plans to sell over the next three years while keeping $4 billion in such holdings.
Mr. Lay also must create a post-Skilling succession plan. He says he will soon recommend to the board the names of one or two executives to join him in the office of chairman.
When all is said and done, will the world really see a softer side of Enron? "I'm not sure that Enron is exactly humbled," says UBS Warburg analyst Ron Barone. "But they're certainly under a new kind of pressure."

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

California; Metro Desk
The State PG&E's Power Bill May Go Up Energy: The PUC wants to shift some of the state's cost of buying electricity away from Edison. It also proposes a 12% rate hike for SDG&E.
NANCY VOGEL; TIM REITERMAN
TIMES STAFF WRITERS

08/28/2001
Los Angeles Times
Home Edition
B-8
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- California regulators plan to shift roughly $250 million a year of the cost of buying power for the state away from financially troubled Southern California Edison to Pacific Gas & Electric, which already is in bankruptcy.
The move, part of a draft decision issued Monday by Loretta M. Lynch, president of the state Public Utilities Commission, is a step toward completing plans for repaying the state treasury for money spent buying electricity on behalf of the state's three major private utilities--Edison, PG&E and San Diego Gas & Electric.
The PUC also issued a draft decision that would increase the electricity rates of San Diego customers by an average of 12%.
Another draft decision would suspend the ability of electricity customers statewide to choose their own power provider. That decision was a blow to electricity-generating firms, such as Enron and AES NewEnergy, which had lobbied hard to maintain the ability to sell directly to customers--mostly large businesses--that have chosen not to buy power from the local utility.
The five-member commission will vote on the measures Sept. 6.
The proposals are designed to assure a flow of revenue to the state Department of Water Resources, which has been buying power for utility customers most of this year. The state's power crisis saddled the utilities with so much debt that earlier this year they became financially unable to buy power on behalf of their customers.
The Department of Water Resources has been paying for power out of the state treasury. To reimburse the treasury, the state plans to float a $12.5-billion bond issue. Those bonds would be paid off by customers of the three utilities.
One of the issues before the PUC has been how much of the cost of those bonds should be carried by each of the three utility companies.
The Department of Water Resources had proposed charging each utility the same amount per customer. But the PUC's proposed order calls for splitting the cost among the utilities according to how much it costs the department to provide power to each of them. "The utilities argued that it was discriminatory to have their customers subsidizing other customers' costs," Lynch told a news conference. "And we agreed."
"Instead of giving all utilities the same allocation of cost equally," she said, "we instead dig down behind the numbers to determine how much it actually costs" to serve each of the utility's customers.
The PUC's analysis determined that the cost of serving Edison is lower than the cost of serving PG&E. The resulting decision shifts $500 million in payments from Edison to PG&E over the next two years.
Edison customers, however, will not see a drop in their electricity bills. Whatever money is left over after the Department of Water Resources takes its share can be used by Edison to cover the costs of its own power production and purchases. The PUC is now holding hearings to determine just how much of what is left over should go to Edison.
Whether the rates paid by PG&E customers would actually go up under the PUC proposal remains unclear. But PG&E officials condemned the shift as unfair.
"If adopted by the [PUC] this would lock our customers into 40% to 55% higher rates for DWR power over the next 10 years, compared to customers of Southern California Edison and SDG&E," the company said in a statement. "This massive cost shift was not proposed by DWR, discriminates against PG&E's customers, and has not been subject to public review, due process, or cost justification by DWR or the [PUC]."
The PUC's actions are intended to convince Wall Street that the state will be able to repay the bond issue. In general, the draft orders issued Monday mirror an earlier proposed agreement that essentially insulates the Department of Water Resources from PUC reviews of electricity rate increases. But the decision by the PUC to alter the way the department's power-buying costs are allocated among the major utilities was a significant change.
Steve Maviglio, Gov. Gray Davis' press secretary, said the fact that the PUC was putting in place the legal machinery necessary for the bond sale is "a positive step in moving the ball forward."
Maviglio denied that PG&E was being punished for choosing bankruptcy earlier this year rather than cooperate with the Davis administration on a possible rescue plan. "It's all based on numbers and math; politics is not in the equation," he said.
Spokesmen for Edison and SDG&E said they needed to study the draft decisions before commenting. The PUC will require the Department of Water Resources to give it an updated revenue requirement in February, spelling out the agency's actual expenditure for the last year. That information will be used by the PUC to decide whether to adjust the electricity rates of utility customers up or down. Any changes would show up in customers' bills next June, Lynch said.
If approved by the full PUC, the proposed agreement would mean that the Department of Water Resources, which has entered into $43 billion in long-term contracts for power, will not be subject to PUC reviews. Lynch said state legislation gives the department the responsibility to review its own costs.
That lack of independent review worried consumer advocate Lenny Goldberg, a lobbyist for the Utility Reform Network. "Just accepting DWR at whole cloth is an abdication of how ratepayers ought to be treated," he said.
Goldberg said he hopes the Legislature passes a bill by Sen. John Burton (D-San Francisco) that would give the PUC authority to scrutinize the water agency's costs.
But Davis' advisors say such scrutiny could frighten Wall Street investors and hurt the state's ability to sell bonds at a favorable price. The proposed PUC order raising electricity rates for many of SDG&E's 1.2 million customers would become effective no later than Oct. 1. Rates for PG&E and Edison customers were increased earlier this year. The average rate hike for SDG&E customers amounts to 1.4 cents per kilowatt-hour--less than half of the rate hike approved for utility customers elsewhere.
Lynch said the proposed increase for SDG&E is lower because its customers bore the full cost of electricity in California's haywire electricity market last summer. While Edison and PG&E customers were protected by a rate freeze, SDG&E customers saw their bills double and in some cases triple before the Legislature stepped in to cap rates last September.
To encourage conservation, the San Diego rate hike is structured so that residential customers who use no more than 130% of a baseline amount would not experience any increase. Baseline is the number of kilowatt-hours that supposedly meets the minimum needs of an average household in a particular region. The average increases would be 18% for small commercial customers and 19% for industrial firms.
The move to suspend the right of consumers to buy power directly from generators would put an end to one of the major selling points for the state's failed 1998 deregulation plan. Supporters of direct access, as the consumer-choice provision is known, were especially dismayed that the PUC said it would suspend choice retroactive to July 1. Some companies, including AES NewEnergy, had pushed in recent weeks to sign up new customers before the option was eliminated. Those contracts would appear to be invalid if the PUC adopts the draft decision.
Enron spokeswoman Karen Denne said the suspension of the so-called direct access program "is incredible bad news for business."
"It appears the only way to escape the California energy debacle is to escape California," she said.
State officials have said they could not allow direct access in order to ensure that all customers pay their share of the cost of reimbursing the state for its power purchases.
*
Times Staff Writer Nancy Rivera Brooks contributed to this story.

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

Enron Names Whalley, Frevert to Chairman's Office (Update1)
2001-08-28 08:13 (New York)

Enron Names Whalley, Frevert to Chairman's Office (Update1)

     (Adds background on the executives in second paragraph.)

     Houston, Aug. 28 (Bloomberg) -- Enron Corp., the largest
energy trader, named company executives Greg Whalley and Mark
Frevert to the office of the chairman, two weeks after the
resignation of Jeffrey Skilling as chief executive.

     Whalley, 39 years old, was also named president and chief
operating officer. He previously held those titles for Enron
Wholesale Services, the energy- and commodity-trading unit that
accounted for almost all of the company's $50.1 billion in second-
quarter revenue. Frevert, 46, was chairman and chief executive of
Wholesale Services. He was named vice chairman, Enron said.

     Skilling, Enron's CEO since February, and Chairman Kenneth
Lay were the only executives in the office of the chairman, which
decides company strategy. Lay, who preceded Skilling as CEO, took
back that job after Skilling resigned. Lay's contract has been
extended to 2005.

     Skilling said Aug. 14 he resigned for personal and family
reasons, though he later said the recent drop in Enron's stock
price contributed to his decision. Shares of Houston-based Enron
have fallen 55 percent this year.

     The stock rose $1.41 to $37.76 yesterday.

USA: Enron names Greg Whalley president, COO.

08/28/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON,, Aug 28 (Reuters) - U.S. energy giant Enron Corp. on Tuesday named Greg Whalley as president and chief operating officer, continuing a management shake-up that started earlier this month.
Whalley, 39, was most recently president and chief operating officer of Enron Wholesale services.
On August 14, Jeffrey Skilling resigned as Enron chief executive and president, and Chairman Kenneth Lay resumed his duties as president and CEO at the wholesale energy marketer and trader.
Also on Tuesday, Enron named Mark Frevert, 46, as vice chairman.

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

Enron Names Greg Whalley President, Oper Chief

08/28/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Enron Corp. (ENE) named Greg Whalley president and chief operating officer, and Mark Frevert vice chairman. Both men will join Kenneth Lay in the office of the chairman.
The appointments come two weeks after Jeffrey Skilling resigned as president and chief executive after serving only six months at the job. Shortly afterward, Lay, who preceded Skillings, returned to the helm of the utilities company and announced plans to recommend his next level of succession.
Since Skilling's resignation, Enron's stock dropped sharply. On Aug. 13, a day before the news hit, the company's stock closed at $42.16. It closed Monday at $37.76, up $1.41, or 3.9%, on the New York Stock Exchange.

Whalley, 39, most recently was president and chief operating officer of Enron Wholesale Services.
Frevert, 46, was chairman and chief executive of the same unit.
-Maria P. Vallejo; Dow Jones Newswires; 201-938-5400

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

INDIA PRESS: Fincl Cos Look For Enron Stake Buyers

08/28/2001
Dow Jones Asian Equities Report
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- The search for a buyer for U.S. energy company Enron Corp.'s (ENE) stake in Dabhol Power Co., its Indian unit, has started with financial institutions initiating discussions with potential buyers, reports the Economic Times.
"FIs (Financial Institutions) have been told to work out details about the prices that each of the interested buyers can offer for the Dabhol project," said the newspaper, quoting India's Finance Secretary Ajit Kumar.
Enron has a controlling 65% stake in Dabhol Power Co., located in the western Indian state of Maharashtra. The project's first phase, a 740-megawatt power plant, hasn't been in operation since May 29. DPC's sole buyer, the Maharashtra State Electricity Board, stopped drawing electricity as it said the company's tariffs were "exorbitant and unaffordable."
Work on DPC's second phase, a 1,444-megawatt power plant which is around 95% complete, has also stopped due to DPC's financial difficulties.
Enron has put a $1.1 billion price tag for its stake in DPC, according to local media reports.
Costing $2.9 billion, DPC is the single largest foreign investment in India to date.
Web site: www.economictimes.com
-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426; himendra.kumar@dowjones.com

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

Enron denies seeking sanctions over Dabhol
Sanjay Dutta

08/28/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

NEW DELHI: US energy trading major Enron Corp has denied approaching Washington seeking sanctions against India over the dispute with the Maharashtra government over the $2.9 billion Dabhol power project, even as domestic financial institutions hinted at increasing their exposure in the project by about $483 million (Rs 2,270 crore) for its completion.
In a letter to Prime Minister Atal Bihari Vajpayee on Saturday, a copy of which was available with The Times of India, Enron CEO Kenneth said: "A recent story in the Financial Times, which mischaracterised discussions with me, appears to have caused significant, unintended concern. Counter to the impression given in the story, I have not asked anyone in the US government to consider imposing sanctions."
Lay said in his letter that Enron's approach was to settle the issue amicably by selling its stake. "Furthermore, I did not say that the Dabhol power plant had been expropriated. Upon questioning from the publicator (publisher) I did factually explained the several possible options available, including how one might get to expropriation and about the US laws in place to protect its businesses. However, that is far from suggesting that we have decided to pursue these mechanisms," Lay said.
"Our preferred approach approach continues to be to resolve this issue amicably by selling our stake to Indian governmental and financial institutions," Lay said.
However, Lay tempered his conciliatory stand by adding, "Without agreement on that, we have little choice but to follow the termination procedures jointly agreed under the power purchase agreement."
Lay also sent copies of the letter to finance minister Yashwant Sinha and power minister Suresh Prabhu.
PTI ADDS: The IDBI-led FIs' consortium may increase their exposure to enable the project to be completed and negotiate Daphol Power Company's equity at a 25 per cent discount to its face value.
The FIs are exploring a possibility of taking out offshore equity by investment institutions and utilities after 12-18 months from Phase-II completion, the report said.
If this proposal was accepted by the joint committee of the FIs, then IDBI's revised exposure would be at Rs 2,742 crore from existing Rs 2,121 crore, ICICI Rs 1,904 crore from Rs 1,473 crore, SBI Rs 2,261 crore from Rs 1,749 crore, IFCI Rs 587 crore from Rs 454 crore and Canara Bank Rs 526 crore from Rs 407 crore.
"Even in the best case, the exposure requirements from domestic institutions exceed the prudential exposure norms," the report quoted FI sources as saying. Subsequent participation by all other FIs and banks like IDFC, PFC, PNB, Union Bank, Bank of India among others would be accrued through syndication.
FIs may also seek a guarantee from the Centre as a backup for their exposure, the report quoted the sources as saying.
Last week, the FIs had made a presentation to the finance ministry on a possible bailout package for Dabhol. The proposals envisage concessions from stakeholders, around 22.38 per cent concessional duty on the energy major's liquefied natural gas plant, a mega power project status and offset of custom duties on LNG supply.

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

Business; Financial Desk
Markets / Your Money Stocks Ease After Friday's Big Gains Markets: NYSE trading is light. Among commodities, natural gas prices see 18-month lows.
From Times Staff and Wire Reports

08/28/2001
Los Angeles Times
Home Edition
C-4
Copyright 2001 / The Times Mirror Company

The stock market posted modest losses Monday after Friday's big rally, as trading volume slowed to a crawl.
In commodity trading, natural gas prices plunged to 18-month lows amid an expected drop in demand from electricity generators this week.
On Wall Street the Dow industrials eased 40.82 points, or 0.4%, to 10,382.35 while the Nasdaq composite slipped 4.39 points, or 0.2%, to 1,912.41.
On Friday the Dow soared 194.02 points and Nasdaq jumped 73.83 points after Cisco Systems said its sales so far this quarter are meeting expectations. The report raised fresh hopes that the technology sector is bottoming.
But the bulls couldn't keep the momentum going Monday. Losers outnumbered winners by 17 to 13 on the New York Stock Exchange and by 20 to 16 on Nasdaq.
A weak report Monday on existing-home sales in July may have weighed on investor sentiment.
NYSE volume was anemic; it was the fourth-slowest full-day session this year.
"For the market to make a convincing case that we've ended the decline, it's going to have to put together a few days in a row of advances or people are going to look upon up days as an isolated situation," said Barry Hyman, chief investment strategist at Ehrenkrantz King Nussbaum.
Still, some analysts argued that the lack of heavy profit taking Monday was a good sign.
"I would have thought that . . . we would have given back half of Friday's gains, and we didn't," said Larry Wachtel, market analyst for Prudential Securities.
In the bond market, long-term yields were marginally higher.
Commodity trading was dominated by the action in natural gas prices. Near-term futures in New York fell 16.2 cents to $2.54 per million British thermal units, an 18-month low.
Traders said cooler weather in much of the country this week is expected to cut demand for electricity to run air conditioners. Many power plants use natural gas to generate electricity, so gas demand could slide.
Among Monday's highlights:
* In the tech sector, Cisco slipped 24 cents to $18.01, Compaq lost 38 cents to $13.27 and Veritas Software was off 66 cents to $34.83.
But Microsoft added 26 cents to $62.31 and Intel was up 7 cents to $29.15.
In the telecom sector, Verizon Communications fell 76 cents to $51.35 while Sprint FON edged up 27 cents to $22.72.
* Energy stocks were mixed despite the plunge in natural gas prices. Enron gained $1.41 to $37.76 and El Paso rose 89 cents to $51.91, but Unocal lost 31 cents to $35.87 and Chevron fell 70 cents to $92.10.
* Blockbuster sank $1.60 to $20.35. The video chain's growth may be threatened by a film-studio joint venture that would deliver movies over the Internet, Barron's magazine said.
* The July home-sales report may have hurt online home-listing site Homestore.com, which tumbled $2.98 to $18.60.
* Bank and thrift stocks were weak. Comerica fell $1.15 to $61.01, FleetBoston lost 96 cents to $38.05 and City National eased 53 cents to $48.01.
* Some health-maintenance organization stocks resumed their recent rally. WellPoint Health gained $1.56 to $108.54 and Oxford Health was up 92 cents to $30.50. But Aetna fell $1.23 to $28.77.
In foreign trading, Japan's Nikkei-225 index rose nearly 1%. Germany's main index added 0.4%. The Mexican market slipped 0.3%.
Market Roundup, C11, C12

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

Abreast of the Market
Vignette Rises as eBay, Yahoo Fall Amid Seesaw Day for Tech Stocks
By Karen Talley
Dow Jones Newswires

08/28/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Technology shares tried, and failed, to buck the negative trend and turn in a positive performance. After spending much of the afternoon in the black, they turned lower during the final minutes of trading.
Old Economy stocks spent most of the session on the downside and offered up more examples of how employment softness is extending beyond technology.
Traders said it was disappointing that stocks couldn't advance again, but they noted the pullback was modest and hardly canceled out Friday's surge. "I think the market is telling us it doesn't want to go down dramatically from here," Charles Johnson, head of trading at Blaylock & Partners, said.
Mr. Johnson said the market is moving on sparse volume, indicating an absence of big institutions whose buying power can help create a solid floor.
The Dow Jones Industrial Average fell 40.82 points, or 0.39%, to 10382.35 and the Nasdaq Composite Index fell 4.39 points, or 0.23%, to 1912.41.
On the New York Stock Exchange, decliners outpaced advancers 1,760 to 1,360. Volume on the Big Board was 849 million shares, with up volume of 359 million and down volume of 479 million.
It was a tale of two directions for Internet stocks. Providers of services such as online security were among the session's best-performing groups, with Vignette gaining $1.06, or 15%, to $7.93, Check Point Software adding 91 cents, to 34.79 and CheckFree rising 1.70, or 8%, to 22.75.
But Internet-commerce stocks were among the session's weakest performers, with eBay declining 2.61, to 56.40, HomeStore.com off 2.98, or 14%, to 18.60 and Yahoo shedding 69 cents, to 13.42.
Old Economy stocks moved marginally on word that cutbacks were occurring. Deere fell four cents to 43.91 on plans to sell its Homelite consumer-products business and restructure its construction and forestry division -- moves that will result in a pretax charge of as much as $240 million and the elimination of 300 jobs.
Georgia-Pacific fell 15 cents to 37.02 after saying it will shut four paper machines at its Camas, Wash., mill that are responsible for 11% of white-paper output. The move will eliminate 250 positions.
J.P. Morgan Chase added 17 cents to 41.10 after a report in the Financial Times that the bank has begun its third round of cost-cutting since merging with Chase Manhattan during the past year.
Cutbacks in the technology area continued. Hughes Electronics, the General Motors unit that operates DirecTV, tumbled 20 cents, to 19.45 on plans to lay off about 800 employees to cut costs amid a slow economy and several disappointing quarters at its flagship satellite-broadcast unit.
Savings and loans were the session's worst performers, for a second day, on sentiment that profits won't be as robust now that the Federal Reserve may be close to finishing its interest-rate reductions. Mortgage lenders whose volume benefits from lower rates include Astoria Financial, which dropped 1.22, to 55.85, New York Community Bancorp, which fell 1.97, or 5.1%, to 36.92 and Washington Mutual, down 1.71, to 36.25. The savings and loans still have their champions, including Lehman Brothers analyst Bruce Harting, who called the selling "irrational," and said the stocks have a lot of merit.
Water and gas utilities were the day's strongest groups, but their gains were lukewarm, illustrating the lack of a breakout by any sector. American Water Works added 1.26, to 34, Enron was up 1.41, to 37.76 and Nicor fell two cents to 38.98.
Tyco International rose 21 cents to 53.61 after being named to the "Top Picks" list at Deutsche Banc Alex. Brown. Tyco "offers the `complete package' for investors, with growth plus cash flow and acquisition acumen," said analyst Harriet Baldwin, who has a 12-month price target of $81.
Gilead Sciences rose 1.25, to 61.76 after Germany's Degussa Corp. said it bought the remaining 49% stake of Proligo LLC, a genetics concern, from Gilead for $14.3 million.
Bergen Brunswig added 1.45, or 6.4%, to 24.10 and AmeriSource Health gained 2.81, to 65 after the Federal Trade Commission ruled the nation's third- and fourth-largest drug wholesalers can proceed with their $7 billion merger.
NRG Energy gained 84 cents, to 18.24 after Banc of America Securities started coverage of the stock with a buy rating. NRG's expansion plans "offer geographic, functional and fuel diversity," analyst Ali Agha said in a note to clients.
Williams-Sonoma added 76 cents, to 32.97 after jumping 13% on Friday when the kitchen and bath-products retailer posted second-quarter net income of two cents a diluted share, beating analysts' expectations for break-even results.
Quest Diagnostics gained 1.12, to 65.86 after Morgan Stanley initiated coverage with an outperform rating. "Baby boomers, price discipline and genomics are driving top-line growth" for the clinical-laboratory operator, Morgan Stanley analyst David Zimbalist said.
Blockbuster shed 1.60, or 7.3%, to 20.35 and Movie Gallery dropped 3.55, or 11%, to 27.75 after an article in Barron's said Hollywood studios and cable companies pose a threat to video chains. Barron's is published by Dow Jones & Co., which also publishes The Wall Street Journal. Earlier this month, five film studios announced a joint venture to deliver video on demand through the Internet.
Best Buy was unchanged at 61.23 after showing a loss for most of the day, perhaps as investors followed the advice of Merrill Lynch. "We would use any price weakness as a buying opportunity as this dominant retailer gains market share with its customer-preferred big-box shopping format," Merrill analyst Peter Caruso said in a note to clients.
Brokerage houses edged lower after Goldman Sachs again cut its full-year outlook for several in the sector. Among stocks mentioned by Goldman, Lehman Brothers shed five cents to 68.30, Morgan Stanley fell 25 cents to 56.35 and Charles Schwab dropped 38 cents, to 13.01. The companies' fundamentals "remain in the doldrums," although the stocks' valuations show some signs of improving, Goldman analyst Richard Strauss said in a note.

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

Aug. 28, 2001, 2:02AM
Houston Chronicle
Enron works to shore up confidence
Taking a long view
By LAURA GOLDBERG
Copyright 2001 Houston Chronicle
Even though nothing major appears to be wrong at Enron Corp., investor confidence in the world's largest energy trader remains shaky.
Wall Street stock analysts agree with Houston-based Enron that its core business in wholesale energy trading and marketing is strong. But investors are concerned over a series of issues that when taken together give them pause about Enron's stock.
Among them: whether the "real" reason for CEO Jeff Skilling's sudden departure two weeks ago is still to come out; who will replace Skilling; analysts' inability to get a detailed understanding of Enron's financial performance because Enron hasn't given them more detailed and segmented data; and ongoing disputes surrounding a power plant project in India.
"The first thing they need to do is they need to get investor confidence back," said Carol Coale, a Prudential Securities analyst in Houston who follows Enron. "There's 10 points in the stock related to uncertainty surrounding Skilling's sudden departure."
It may take a quarter or two for investors to believe that "there was not another shoe to drop related to Skilling's resignation," she said.
Enron's stock already had taken a beating this year, trading as high as $82 at the end of January and closing just under $43 before Skilling's announcement.
After Skilling, a key player in Enron's transformation from a pipeline company to a trader of energy and other commodities such as metals and pulp and paper, said he was leaving Enron for personal and family reasons, the stock fell further, closing at $36.25 four trading days after the announcement.
The stock rose $1.41 to close in regular trading at $37.76 Monday.
Enron, analysts said, should be able to boost investor confidence by taking a number of steps.
One -- expected to happen today -- is the naming of potential successors to Skilling.
But the company also give must analysts the financial data they've been seeking, resolve the India situation, sell off underperforming international assets and turn out positive earnings reports.
Enron got a fresh round of questions after Skilling left. That was despite assurances from Skilling and Enron Chairman Ken Lay, who stepped back into the chief executive and president roles, that Skilling wasn't fired and no negative disclosures about Enron were on the way.
Even though many analysts, some of whom met with Lay after Skilling left, generally seem to believe both points are true, investors apparently remain skeptical, especially in light of Enron's stock performance this year.
The stock took a big hit when Enron's broadband business fell apart as the telecommunications industry melted down.
Some analysts, though, believe Enron and Skilling oversold the business and that some on Wall Street overvalued it. Based on certain calculations, Enron touted broadband as an enterprise worth as much $40 a share in the stock price.
Enron's link with telecommunications meant it got caught both on the upside and downside of the bubble, said Raymond Niles, an analyst at Salomon Smith Barney. Before Skilling left, the broadband reaction had already come out of the stock, he said.
"The fundamentals do not justify the stock drop to the magnitude we've seen this year," said Lay, noting that second-quarter net income rose 40 percent year over year. "Enron has performed incredibly well."
Lay said attacks by Gov. Gray Davis and others in California on Enron and other out-of-state energy companies also dragged the stock down. But California's energy crisis is on the path to resolution and the "blame game" has tapered off, he said.
In a blitz of recent meetings with analysts and fund managers, Lay said Enron would respond to requests for more detailed and segmented financial data, but without divulging information that is proprietary or damaging to its competitive position.
Analysts likely will see some of the new data at the end of the third quarter and even more by year's end, Lay said. Whether what's provided satisfies them remains to be seen.
"The struggle is it's hard to project Enron earnings," said Jeff Dietert, an analyst with Simmons & Co. International in Houston. "It's hard to develop metrics that you can use to project their earnings. ... There are still questions as to how they make their money."
Enron, Coale said, tends to group businesses into one sector so "that it is difficult to see the trees that make up the forest. We refer to their earnings as a black box."
Investors also harbor fears about Enron's cash flow, said Andre Meade, an analyst at Commerzbank Securities. He described it as more of misperception than a problem, as the cash flow can be "fairly lumpy" because of the way Enron's trading business operates.
When Lay names two Enron executives to join him in the office of the chairman, they will be seen as the probable candidates for chief executive. But other Enron executives not named to the office also may be on the CEO short list, Lay said.
It could take as long as two or three years to groom a successor, which would also give Wall Street time to become comfortable with the person.
Names bandied about on Wall Street as possible successors included Mark Frevert, CEO of Enron Wholesale Services; Lawrence "Greg" Whalley, chief operating officer of Enron Wholesale Services; and Dave Delainey, CEO of Enron Energy Services.
Enron is also working to resolve the disputes surrounding its Dabhol power project in India.
Enron holds a 65 percent stake in the project, which it's seeking to sell. But Enron says any deal must allow it to recover its approximately $1 billion in costs, which include $875 million of equity investment and unpaid bills for power the plant has supplied.
Lay also expects to announce some large asset sales in the next 12 to 18 months.
Enron plans to stay on its current strategic path, which includes broadening its trading into a range of other commodities.
"We're just going to keep doing what we're doing," Lay said. "The most important thing right now is to continue the strong performance at Enron, and eventually the market will catch up with us."


Attached are the talking points that we will be communicating to individuals who have been identified to go to NETCO.

If you have any questions, please let me know.

Amy


---------------------- Forwarded by David W Delainey/HOU/ECT on 02/15/2001
12:45 PM ---------------------------
From: Laura Luce@ENRON on 02/14/2001 04:34 PM
To: David W Delainey/HOU/ECT@ECT, John J Lavorato/Enron@EnronXGate, Edie
Leschber/HOU/ECT@ECT
cc: Hunter S Shively/HOU/ECT@ECT, Lynn Pikofsky/Corp/Enron@ENRON
Subject: 2001 Central Region

Dave,
Attached please find the Central Region 2001 Plan.  If you have questions or
comments, please contact me @ 312/541-1225.

I appreciate your patience in respect to the delay of this material.

Laura


Hi,
	Previously I forwarded an email to you which contain a list of options products we are considering making markets in.
	Many of you have asked for more details on these (exotic) options products.
	In response to this request, I will be periodically forwarding modules to your attention which give further details on these options products.
	Please do not hesitate to contact me if you have any questions, comments, etc.

Regards,
Iris Mack, MBA/PhD
Power Options Trading Desk
x3-6711


Bill, I want to thank you and your team for everything you are doing to assist our cause.  I am confident that, together, we shall ultimately prevail.  Good luck on the appeal.  All the best.  Jim


Thanks but I will pass for now.  I wouldn't mind looking at some muni's with shorter maturity dates though.  I am concerned about long-term yields increasing which would mean bond prices decreasing.  Doesn't it make since to go with shorter maturity dates ri8ght now?

"Hill, David " <David.Hill@morganstanley.com> on 05/04/2001 10:46:00 AM
To:	"Stan Horton (E-mail)" <stanley.horton@enron.com>
cc:	"Dingle, Susan " <Susan.Dingle@morganstanley.com>

Subject:	Tax Free Opportunity

The Muni desk called to say they are seeing a blip in the market and are
seeing  5 1/4% at par around 2021 to 2025. They think those rates won't
last.

They called about your portfolio because your ladder is is thin in those
years.

You have some cash. If you have an interest give me a call. I can fax your
maturity concentration schedule  to you if you need it. I didn't want to
send your portfolio info by fax  without your permission.

David

**** Important Notice to Recipients ****
It is important that you do not use e-mail to request, authorize or effect
the purchase or sale of any security or commodity, to send fund transfer
instructions, or to effect any other transactions.  Any such request,
orders, or instructions that you send will not be accepted and will not be
processed by Morgan Stanley.
****************************************


Dear Board Task Force -
Attached in .pdf format are comments filed yesterday by Williams Gas Pipeline
regarding the upcoming meeting.  You have already received the other comments
submitted to the GISB office via email.  These comments will be posted on our
home page today.  Best Regards,  Rae

cc:  Dale Davis, Williams Gas Pipeline

 - williams.PDF


Gerald, FYI I understand that Exxon/Mobil is paying its 1st year summer
clerks
$7,500 per month and that Compaq is paying $30 per hour. Thanks, Bruce.

>>> Gerald.Nemec@enron.com 04/27/01 04:42PM >>>
Bruce,

Enron North America Corp.  selected 4 candidates for interview for
summer
clerkship positions from the resumes you forward.  Two were made offers
with both accepting the offers.  The two clerks we have working this
summer
are:

Alisha Mahabir - South Texas College of Law
Nabil Nachawati - University of Houston Law Center

Nabil will be working the 1st half of the summer and Alisha will be
working
the 2nd half of the summer.  Thanks for all your help with this process.
If you need any further information, please do not hesitate to call me
at
(713) 853-3512.

Gerald Nemec


Darron - sorry - My hard drive crashed two weeks ago and I lost my records
of who did what and how much.  Good news is I should get my restoration
back this week.  Tell me what your OU seats were so I can pair them with
seats close by, or exchange them for four together.

I vaguely remember us talking about OU.  Do you remember how much you paid
me?

When you say two additional tix for next season, do you mean season and OU
or just one or the other?  The only way you can get more OU seats than your
season tix is if someone else in the group doesn't want to buy OU tix with
their season tix.

I'm glad they arrived so quickly.

We'll get it worked out

d

Darron.C.Giron@enron.com on 08/27/2001 12:38:47 PM

To:   David Plaisance/US/FAS/PwC@FAS
cc:
Subject:  RE: Season tix are in

I just got the tickets.  Thanks for sending them.  I paid for 4 OU tickets,
could you only get me 2?  Let me know.  I also wanted to ask you about the
possibility of getting 2 additional tickets for next season.  I know you
get quite a few each year, but don't know if you have extras available.
Thanks again.

DG

    -----Original Message-----
   From:   <david.plaisance@us.pwcglobal.com>@ENRON

[mailto:IMCEANOTES-+3Cdavid+2Eplaisance+40us+2Epwcglobal+2Ecom+3E+40ENRON@ENRON.com]

   Sent:   Wednesday, August 22, 2001 11:37 AM
   To:     Giron, Darron C.
   Subject:  RE: Season tix are in

   OU tix are in!

   We'll work out leaving the tix for you under the mat, unless you'd like
   me
   to fedex them to you.  Let me know

   d

   Darron.C.Giron@enron.com on 08/22/2001 10:42:07 AM

   To:   David Plaisance/US/FAS/PwC@FAS
   cc:
   Subject:  RE: Season tix are in

   It looks like we won't make it to Austin before the 1st.  I'll probably
   just ask you to leave the tix under your front door matt on the day of
   the
   NMSU game and we will stop by to pick them up.  I will verify this with
   you
   next week.  I can't believe the season is already upon us.  Any word on
   OU?

   Thanks
   DG

       -----Original Message-----
      From:   <david.plaisance@us.pwcglobal.com>@ENRON

[mailto:IMCEANOTES-+3Cdavid+2Eplaisance+40us+2Epwcglobal+2Ecom+3E+40ENRON@ENRON.com]

      Sent:   Monday, July 23, 2001 9:47 AM
      To:     Giron, Darron C.
      Subject:  RE: Season tix are in

      Sorry I misspelled your name again.  Just let me know when.  They'll
   be
      here

      d

      Darron.C.Giron@enron.com on 07/23/2001 09:37:06 AM

      To:   David Plaisance/FAS/Price Waterhouse@FAS
      cc:
      Subject:  RE: Season tix are in

      I may be in Austin later this summer.  I'm in no hurry to get the
      tickets.
      If you will, please hang on to them and I'll advise at a later date.
      Thanks.

      DG

          -----Original Message-----
         From:   <david.plaisance@us.pwcglobal.com>@ENRON

[mailto:IMCEANOTES-+3Cdavid+2Eplaisance+40us+2Epwcglobal+2Ecom+3E+40ENRON@ENRON.com]

         Sent:   Sunday, July 22, 2001 3:17 PM
         To:     dgiron@enron.com
         Subject:  Season tix are in

         Darin - The season tickets are in; OU tickets will be mailed
   later.
      How
         do
         you want to pick them up?  Any plans to be in Austin, soon?

         Regards

         David

         512-278-1716 (o)
         512-272-5009 (h)

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      received
      this in error, please contact the sender and delete the material from
      any
      computer.

   **********************************************************************
   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.
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   which it is addressed and may contain confidential and/or privileged
   material.  Any review, retransmission, dissemination or other use of, or
   taking of any action in reliance upon, this information by persons or
   entities other than the intended recipient is prohibited.   If you
   received
   this in error, please contact the sender and delete the material from
   any
   computer.

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The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
material.  Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited.   If you received
this in error, please contact the sender and delete the material from any
computer.


Alan,

 This will confirm your instructions that for the time being, I will be
reporting to you and the other above-referenced people.  I also understand
that David Best and I will not be further involved in development of a
resolution of the ECT/FGH agreement issues, and will confine our efforts to
resolution of the cargo contamination matter.  Per you instructions, in order
to keep from inundating Janice Moore (who will be working on the ECT/FGH
agreement issues) with e-mails, I will not be reporting to her for the time
being.

 The following are action/status items:

1. ACTION:  I would like to have your authority today for Best to retain as
ECT's chemist in the contamination matter Steve Jones of APC Consultants, who
is based in London.  Jones is reportedly well-regarded in the London legal
community, makes a good witness, and has the right background for this kind
of matter.  I am told that the best available chemist in Singapore has a
background more oriented to fire investigation cases.  Jones charges a daily
rate of 725-755 pounds per day, which David relates is very reasonable for
his services.

 Best will be sending Jones relevant documentation to review at the opening
of business tomorrow in London, with the plan of then getting Jones'
preliminary advice on Wednesday, including the critical element of the
testing procedure to be used at the joint analysis that is being scheduled
for Singapore next week.  If it proves to be our best strategy to have Jones
attend the joint analysis in Singapore, Jones will undoubtedly be charging
transit time in addition to his expenses.

 I think that this case may boil down to a "battle of the experts" and that
it is important to have our "first team" in place before the joint analysis,
whose results may critically affect our case.

2. STATUS:  On a related matter, we are still in the process of determining
what damages ECT has sustained in this cargo contamination case over and
above the approximately $300,000 diminution in value sustained with respect
to the product that was discharged in the Phillipines.  As you know, the bulk
of the product had earlier been discharged in Thailand, where it remains in
storage.  That product had not been nominated by FGH at the time of
discharge, but I believe it was the case that it was supposed to meet FGH's
specs in case FGH wanted to nominate it (Matt, please correct me if I am
wrong).  I believe that ECT's traders are still trying to arrange for the
disposition of that cargo.  I would not be surprised if ECT's contamination
claim approximately doubled once the Thailand cargo is ultimately disposed
of, although at this point I am really just speculating.

3. STATUS:  Matt asked Best what he thought the approximate cost would be to
ECT of arbitrating this cargo contamination case.  Based on an arbitration
that Best thought would last at least one week, and not including any
pre-arbitration  development, Best gave a rough, preliminary estimate of
125,000 pounds.  Best mentioned that if ECT won (which means that ECT both
recovered on its cargo contamination claim and was found ultimately not to
owe any unpaid freight or demurrage), ECT would likely be awarded
approximately 2/3's of his fees, and a larger share of his expenses (such as
the barrister's fees, the fees of our surveyor's, etc.).

4. STATUS:  the statement of Eric Tan and a colleague involved in discussions
with Mitsubishi regarding tank washing will be taken by us shortly.

 I will continue to keep you closely advised.  Please don't hesitate to call
if you have any instructions.

        Britt


Hi Rosalee:
Attached is a summary of the proposal that ENA filed today in response to the
RFP for power and gas issued by California's DWR.  Also attached is a copy of
the complete proposal.  Steve Kean asked that I forward it along to you.
Could you please print out a copy and forward it along to Ken Lay prior to
his departure for Washington D.C.?  Thanks very much.

All the best,
Jeff


Their profile has been modified.

Thanks,
Stephanie

 -----Original Message-----
From:  Jones, Tana
Sent: Tuesday, April 24, 2001 9:58 AM
To: Guidroz, Walter
Cc: Lees, Lisa; Sever, Stephanie
Subject: Re: FW: PG&E Energy Trading Entities

I am sorry I am just getting back to you, but I had to check with my whole
legal team around the world, and I just heard back from the final critical
one.  We are OK with them trading the products below.  However, on physical
power, they can only trade west power.  Stephanie, will you need to open them
up so they can trade immediately?

	Walter Guidroz/ENRON@enronXgate 04/23/2001 05:35 PM 	   To: Lisa
Lees/ENRON@enronXgate, Stephanie Sever/ENRON@enronXgate, Tana
Jones/HOU/ECT@ECT  cc:   Subject: FW: PG&E Energy Trading Entities

Lisa/Stephanie, could you please ensure that the trading profiles for each of
the three PG&E entities are changed below such that by tomorrow morning they
will be able to transact once we restore their headroom once we enter it into
the system?

Tana, are you OK with restoring the changes reflected below?  I'm thinking
that since they had this transact ability once before, that it should be OK.

PLEASE LET ME KNOW IF THERE WILL BE ANY PROBLEMS.

Thanks all!

Walter

 -----Original Message-----
From:  Moran, Tom
Sent: Monday, April 23, 2001 5:08 PM
To: Guidroz, Walter
Subject: FW: PG&E Energy Trading Entities

Walter,

Could you ensure that the profiles are set-up accordingly and that CAS is
populated with a $5million minimum for each of these cp,s.

I do not want to turn them on in Datamanager until tomorrow am.

tm

 -----Original Message-----
From:  Conwell, Wendy
Sent: Monday, April 23, 2001 4:59 PM
To: Moran, Tom
Cc: Bradford, William S.; Ngo, Tracy; Sacks, Edward; Radous, Paul
Subject: PG&E Energy Trading Entities

Tom,

Per our discussion with Bill, please set up the following PG&E counterparties
on EOL providing for transactions having a maximum tenor of 12 MONTHS:

PG&E Energy Trading - Power L.P.-------> Physical Power
PG&E Energy Trading, Canada Corporation---------> Physical Canadian Gas
PG&E Energy Trading - Gas Corporation---------->Physical and Financial US Gas

Thanks,
Wendy


I'm assuming it is as of Jan 3, since that's what's on the schedule, but I put a call into TXU to verify this.

-----Original Message-----
From: Gossett, Jeffrey C.
Sent: Tuesday, January 08, 2002 11:36 AM
To: Tricoli, Carl; White, Stacey W.; Reeves, Kathy; Vinson, Donald
Wayne; Bruce, Michelle
Cc: Miller, Don (Asset Mktg); Sacks, Edward; Sager, Elizabeth; Bradford,
William S.
Subject: RE: Enron/TXU Exposure summary

What date is the termination date?  Are these values as of last night?  Dec. 2nd?  Need to know which date to calculate.

Thanks

-----Original Message-----
From: Tricoli, Carl
Sent: Tuesday, January 08, 2002 11:20 AM
To: Gossett, Jeffrey C.; White, Stacey W.; Reeves, Kathy; Vinson, Donald
Wayne; Bruce, Michelle
Cc: Miller, Don (Asset Mktg); Sacks, Edward; Sager, Elizabeth; Bradford,
William S.
Subject: FW: Enron/TXU Exposure summary

TXU would like to close out all of their positions, and have finally provided us with their view of MTM and other charges for physical and financial power and gas for EPMI, ENA, EES and Enron Canada.  Would each of you please provide me with corresponding Enron numbers for your respective areas.  Michelle, as you will see, there is an item under ENA titled "other" - is this something from your area?  Elizabeth - given the net amount they owe us ($114,751,812.) if we can agree on numbers, can we take this as a one off item to the bankruptcy judge?  Please advise.  Thank you.

-----Original Message-----
From: jshorter@txu.com [mailto:jshorter@txu.com]
Sent: Monday, January 07, 2002 6:15 PM
To: Tricoli, Carl
Cc: tpounds@txu.com; jburt1@txu.com
Subject: Enron/TXU Exposure summary

Carl,

Please review the attached.  I have attempted to summarize our mutual
exposures by legal entity.  If the numbers in the spreadsheet are negative,
then that is monies owed by TXU to Enron.

I am still waiting for exposure summaries from TXU Energy Services as it
applies to Garden State Paper.

As discussed today, my intent is to quickly reach agreement as to a fair
and reasonable resolution of eliminating Enron positions from our book
structure.  I feel confident that our combined legal staffs can bind our
intent as required.

THE ATTACHED SCHEDULES CONTAIN CONFIDENTIAL INFORMATION AND IS SUBJECT TO
FEDERAL RULE OF EVIDENCE 408 - FOR SETTLEMENT DISCUSSION PURPOSES ONLY -
NOT TO BE OTHERWISE ADMISSIBLE

Please give me a call when you've had a chance to review.

thanks

JDS

(See attached file: Enron Jan 7.xls)


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To un-forward your phone, dial 106, or press the "call fwd" button to make the light go out.

Paul


Dear Cassandra,

In looking at the comments below there are several errors made buy us, one in
the template itself, and some suggestions.  At your request, we have started
to prepare this in addition to the normal word violation/notification memos
and our other work.  As you have certain requests and requirements, it would
be helpful for someone in your group to review it before it went out to
ensure it meets your requirements.

Please let me know if this is workable and who the reviewer should be.

Thanks,

Shona

To: Michael Benien/Corp/Enron@ENRON, Chris Abel/HOU/ECT@ECT, Shona
Wilson/NA/Enron@Enron, Daniel Falcone/Corp/Enron@ENRON
cc: Veronica Valdez/HOU/ECT@ECT

Subject: 12/5 Limit Violations and Notifications - Comments

I realize this has already gone out, but I see a few errors that we should
correct  - and actually, I think we should call Skilling and Lay's (and
Buy's) assistants (Veronica will handle this) and see if we can just hand
deliver to them a corrected version early this morning, e-mail is OK for Ted,
David and I. I have a few other suggestions on format/reporting changes as
well.

The NA Power VaR of $51MM was not 105% over its VaR limit of $50 - that would
have been $52.5 to require a report to Skilling, (but if we had had to report
it, don't use "WSCC", try to spell out or just don't use)
UK Gas's VaR limit is not $4, it's $7.5MM
I can't tie in UK Gas' QTD and YTD P/L - shouldn't it be what's on the DPR,
adjusted for the portion of the structured derivatives that is gas - call
over to that Yeo person and get the info. from them please
The 2nd item for NA Gas shouldn't be listed like that as it looks like
another violation - the comment re: the VaR increase was mean to go at the
bottom under RAC comments
The Finance Committe Chairman notification for Agg. VaR is not 100%, it's
115% (notification requirement box)
EES had a VaR violation - $7.5 vs. 7 - that is a Skilling level violation
Let's have the "Re:" say "Limit Violations and Notifications for December 5,
2000"
Let's number them all sequentially rather than starting over at each level

Veronica will call you to coordinate re-distribution.

Going forward, we need to increase our level of review for these as they're
getting a lot of scrutiny given market dynamics and our increasing risk.

Thank you,
Cassandra.

---------------------- Forwarded by Cassandra Schultz/NA/Enron on 12/07/2000
07:38 AM ---------------------------

Michael Benien
12/06/2000 07:08 PM
To: Kenneth Lay/Corp/Enron@ENRON, Rosalee Fleming/Corp/Enron@ENRON, Jeff
Skilling/Corp/Enron@ENRON, Sherri Sera/Corp/Enron@ENRON, Rick
Buy/HOU/ECT@ECT, Karen K Heathman/HOU/ECT@ECT
cc: Cassandra Schultz/NA/Enron@Enron, Ted Murphy/HOU/ECT@ECT, David
Port/Market Risk/Corp/Enron@ENRON, Chris Abel/HOU/ECT@ECT

Subject: 12/5 Limit Violations and Notifications


---------------------- Forwarded by Susan M Scott/HOU/ECT on 10/20/2000 05:12
PM ---------------------------

Adnan Patel@ENRON on 10/20/2000 05:08:49 PM
To: Susan M Scott/HOU/ECT@ECT
cc: GCP_Houston
Subject: New Counterparty - GCP Change Request System

I would need a little more information to set this counterparty since I don't
have access to Deal information. I would like the HQ address, contact person
with the counterparty and a ph/fax number if you would please.

Attached is the process for getting access to GCP Change request system, this
would allow an easier and a better turnaround on your future requests. In the
mean time use the attached form to do any GCP requests...............Thanks!

Adnan Patel
Global Counterparty
x58335

---------------------- Forwarded by Adnan Patel/Corp/Enron on 10/20/2000
04:57 PM ---------------------------
From: Bernice Rodriguez@ECT on 07/18/2000 04:46 PM
To: Adnan Patel/Corp/Enron@ENRON
cc:
Subject: GCP Change Request System

Hi there !

For any new requests, a request must be submitted through the GCP Change
Request System.  In the meantime, please email us the information and fax any
supporting documentation you may have.

To receive access to the GCP Change Request System, each user must submit a
SRRS request with the following instructions.    Once access has been
completed, double click this doclink     to add the dbase to your
workspace.     PLEASE DO NOT DELETE THIS EMAIL MESSAGE !!!

If you need me to give you an overview of the system, please call me.

Thanks
Bernice
x37972

1. Open the Lotus Notes ECT Security Resource Request System (SRRS) data base.
	 SRRS =>
2. Compose a new security request.
3. Follow the instructions on the request form.  Include the following
information specific to requesting access to the GCP Request data base.

         a. In the "Submitted For" field, list the name of the person whom
access is being requested for.

         b. Enter the RC and Company #  for the "Submitted For" person.

         c. In the Comments/Justification field, enter the following text:
"Please add the following employees to the  "ECT GCP Customers" group to
grant editor access to the ECT GCP Request Data Base on LN_1;  enter the list
of employee names here.

4. Click the Create button.

5. In the dialog box, select "Applications/Database".

6. Select "Unlisted Lotus Notes Application" from the drop down list for
Application name in the Application Data Base Dialog Box.   Click OK to close
the dialog box.   (No other information  needs to be added to the  dialog
box.)

7. Click the Submit Request button.


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Please print the attachments. Jim

 -----Original Message-----
From: 	Mathews, Leena
Sent:	Tuesday, May 22, 2001 8:52 AM
To:	Torres, Juan; Sturmer, Donald C. (BEn); Ibrahim, Amr; Zaayman, Johan; Sharma, Ban; Peter Berger@ECT; Howes, Carol; Laad, Milind; Neslage, John; Maisashvili, Gia; Brownfeld, Gail; Ann M Schmidt@ENRON; Culwell, Catherine; Dutt, Ranabir; Wesner-Soong, Sarah; Ben Glisan@ECT; Castelino, George; Larry Morse@enron.com; diana.chow@linklaters.com; Laura_Ewald@enron.net; Rios, Amy; Walls Jr., Rob; jderric@enron.com; pnagarva@ben.bechtel.com; mark_ringwelski@enron.net; Dabholsecurity,; Y'Barbo, Paul; Richard.Allison@gecapital.com
Subject:	May 22nd newspaper clippings


Dear Ben:

Its nice hearing that you are doing well and that you are taking MBA
finance classes --- are these at U. of Houston?

The admissions people mentioned that your GMAT score was too low when you
applied last year.  They said that if you had a higher GMAT score we could
consider you as a special case because of your background in energy
finance.  Basically, my impression was that you didn't need to have a score
close to the 660 median, but you need to improve a lot.  I would also
recommend that you work more on the quantitative sections, since it is
clear to me that your verbal skills are quite good.

Keep in touch.

regards,

Sheridan

At 10:52 AM 10/2/00 -0500, you wrote:
>
>Professor Titman:
>     I hope you had an enjoyable summer and it didn't go too quickly.   I
>hope you remember who I am from last years application process.  I enjoyed
>meeting you last year and talking with  you regarding the curriculum and
>admissions process.  I wanted to let you know that I am still very much
>interested in attending the Business School.
>     I took your advice this summer and took a graduate level finance class
>(Financial Management), which I received an A.  I was very pleased with
>myself, because I had not taken this type of class in quite some time.  I
>have decided to take another graduate level finance class (Macroeconomics),
>which I am currently taking and runs through December.
>     I also sent my information regarding my learning disability into GMAC
>to try and receive a "special testing status" for the GMAT.   I am
>currently waiting to hear back from them with their decision.
>     As you can see, I am still very much interested in attending the
>Business School for next year and I'm in the process of doing whatever I
>can to increase my application profile.  I am also sending an e-mail to
>Carl Harris, who heads up the admissions process  to inform him of these
>recent developments.
>     Please let me know if there is anything else you think I need to do to
>enhance my application profile.   Again, I hope all is going well and I
>look forward to hearing from you soon
>
>Regards,
>
>Ben Rogers
>Enron Corp.
>
>P.S. David Martin says hello!
>
>
Sheridan Titman
Department of Finance
College of Business Administration
University of Texas
Austin, Texas 78712-1179

512-232-2787 (phone)
512-471-5073 (fax)

titman@mail.utexas.edu


Sorry about that.  It is this Saturday.  I thought I sent you the original,
my bad.  You are welcome to come.  It should be lots of fun.  Show up around
7 or so.
See you then.

Elizah


Yes, he is working on the short list.  I do have to say, however, that I have
not had questions from him on any of those names.  I will leave him a voice
mail message for an update.

Brent A Price
09/22/2000 12:36 PM
To: Sally Beck/HOU/ECT@ECT
cc:
Subject: Re: Upcoming Compensation Analysis

I assume he is already working on the short list you told me about (Scott and
Todd included)?
---------------------- Forwarded by Brent A Price/HOU/ECT on 22/09/2000 12:34
---------------------------

Todd Burke@ENRON
22/09/2000 11:08
To: Brent A Price/HOU/ECT@ECT
cc:
Subject: Re: Upcoming Compensation Analysis

Brent,

I have begun initial interviews this week. I started with Gas Trading
Operations and will be moving on to Global Services next week (Shona Wilson,
Mary Solmonson, James Scribner, Scott Mills and Sheri Thomas).  I hope to get
to your group the week after next.  However, I will be calling next week to
set up interviews with both you and your Directors.

Everything is progressing according to plan and I still expect  the analysis
to be completed by mid November.

I hope this helps.  Please call me if you have any questions.  I can be
reached at X39437.

I look forward to meeting you and your group.

Kind Regards,

Todd Burke
ENA Compensation


Here is the latest version of the TCPL Mainline MOU.  Significant changes
(i.e. watered down) changes to turnback policy.  More meetings next week as
indicated below.  I will try to attend discussions on IT Floor and Turnback.
---------------------- Forwarded by Kevin Heal/CAL/ECT on 03/27/2001 03:28 PM
---------------------------

"Marg Seeger" <marg_seeger@transcanada.com> on 03/26/2001 03:44:19 PM
To: John Guerriero <jguerriero@duke-energy.com>, Debbie Harris
<debbie_harris@transcanada.com>, Phi Dang <PDang@gazoductqm.com>, Adam White
<adam_white@transalta.com>, Bill Wible <bill_wible@iroquois.com>, Bob Fraser
<bobfraser@aec.ca>, Brian Howell <behowell@interlog.com>, Brian Ridley
<bridley@hydro.mb.ca>, Brian Troicuk <troicuk@capp.ca>, Brian White
<bswhite@ceg.com>, Brian Woods <brian_woods@email.mobil.com>, Cheryl Worthy
<worthycg@bp.com>, Chuck Baumgart <cbaumgart@renaissance.ca>, Debbie White
<debbwhit@marathoncanada.com>, Diane Cameron <diane_cameron@nexeninc.com>,
Doug Holgate <doug.holgate@husky-oil.com>, Frank Brennan
<frank.brennan@cgc.enbridge.com>, Gilles Favreau
<favreau.gilles@hydro.qc.ca>, Ken Hadley <ken_hadley@pcp.ca>, Kevin Heal
<kevin.heal@enron.com>, Kurt McKnight <kmcknight@uniongas.com>, Lisa McMahon
<lisa.mcmahon@neg.pge.com>, Lyne Mercier <lmercier@gazmet.com>, Martin
Imbleau <mimbleau@gazmet.com>, mike verwegen <mverwegen@uniongas.com>, Mike
Stedman <mstedman@uniongas.com>, Murray Samuel
<murray_samuel@transcanada.com>, Robert Agnello <ragnello@edisonmission.com>,
Robert Andrews <randrews@coral-energy.com>, Peter Fournier
<pfournier@igua.ca>, Ron Moore <ronald.moore@esso.com>, Ronald Richard
<ronald.richard@mrn.gouv.qc.ca>, Shonda Day <days@epenergy.com>, Suzanne
Boucher-Chen <suzanne.boucher-chen@mirant.com>, Vern Gorr
<vgorr@saskenergy.sk.ca>, Frederic Morel <fmorel@gazmet.com>, Isabelle Quach
<iquach@gazmet.com>, Robert Rowe <rob.rowe@cgc.enbridge.com>, Richard King
<rking@powerbudd.com>, Dan Collins <dacollins@negm.com>, Mike Lucy
<mslucy@negm.com>, Nick Schultz <schultz@capp.ca>, Howard Stephens
<hstephens@hydro.mb.ca>, Brent Moen <bmoen@hydro.mb.ca>, Jeremy Slasor
<jeremy.slasor@demloak.com>, Jim Fisher <jfisher@duke-energy.com>, Janet
Holder <janet.holder@cgc.enbridge.com>, Rob Hemstock <rhemsto@ect.enron.com>,
Aleck Dadson <adadson@ect.enron.com>, Normand Stevenson
<nstevenson@gazmet.com>, Randy Fryer <rfryer@northlandpower.com>, Alan Reid
<alan_reid@pcp.ca>, John MacPherson <macpher@petro-canada.ca>, Alain Lefebvre
<alain.lefebvre@mrn.gouv.qc.ca>, craigl <craigl@cnrl.com>, swong
<swong@northlandpower.com>, rinde_powell <rinde_powell@pcp.ca>, "ed.bruton"
<ed.bruton@neg.pge.com>, Marg Seeger <marg_seeger@transcanada.com>, lnixon
<lnixon@tmvgas.com>, "jill.page" <jill.page@gov.ab.ca>, Max Feldman
<max_feldman@transcanada.com>, "bernard.kramer"
<bernard.kramer@mcnenergy.com>, bartlon <bartlon@epenergy.com>, sharon
johnson <sharonej@telusplanet.net>, Jack Hawks <jack.hawks@neg.pge.com>,
Frank Basham <fbasham@talisman-energy.com>, "carol.nykolyn"
<carol.nykolyn@gov.ab.ca>, Tomasz Lange <Tomasz.Lange@mirant.com>, Paul
Manders <Paul.Manders@est.gov.on.ca>, Nola Ruzycki
<nola_ruzycki@transcanada.com>, Sherry_Grimby <Sherry_Grimby@anadarko.com>
cc:
Subject: S&P MOU Draft

In preparation for S&P meetings on April 3 - 5, 2001, attached is the
most recent draft of the Service and Pricing MOU.  The purpose of these
meetings is to review the document and consider final changes and any
legal changes to the MOU.

Please note that the meetings will take place in Calgary, at the
Metropolitan Centre, 333 - 4th Avenue SW in the Strand/Tivoli rooms.

Tuesday, April 3, 2001  9am - 5pm
Wednesday, April 4, 9am - 5pm
Thursday, April 5, 9am - 5pm

An agenda will be sent out later this week.

 - MAINLINE SETTLEMENT Draft 7M.doc
 - marg_seeger.vcf


Steve,
Please charge to Co# 0413, RC# 106333.  Please expedite and advise as to when Joe Parks will have complete access to CQG.

Man thanks,

Liz Rivera
832-851-2822 phone
erivera@bhlp.com

 -----Original Message-----
From: 	Harrington, Stephen
Sent:	Thursday, April 04, 2002 8:59 AM
To:	Rivera, Elizabeth
Subject:	FW: CQG Access
Importance:	High

 -----Original Message-----
From: 	Harrington, Stephen
Sent:	Thursday, April 04, 2002 8:50 AM
To:	Parks, Joe
Cc:	Black, Greg; Corey, Paula
Subject:	CQG Access
Importance:	High

Joe:

In order to re-activate your CQG, we will need an RC and Company Number to charge to.

Regards,

Stephen R. Harrington
Sr. Specialist, Technology Architecture
Enron Net Works, LLC
work:  713-853-7619
cell:  281-541-3364
pager or email:  stephen.harrington@enron.com


Start Date: 1/29/02; HourAhead hour: 2;  No ancillary schedules awarded.  No variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002012902.txt


Industry Group Analysis

This Week: Big Chart Shows Signs of a Change in Leadership

1. Introduction
2. Groups that are Heating Up
3. Groups that are Cooling Off
4. On the Radar Screen this Week
5. Stock in Focus
6. Disclaimer

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1. Introduction

Rotation abounds on the Big Chart as some of the formerly
weak groups are showing some signs of life, while some of
the stronger groups are starting to see their high
percentile rankings slip.  Speculation about lower interest
rates, a growing consensus that the Nasdaq has established
a bottom, and seasonal factors are all spurring the
reallocation of investment dollars.

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reasons to be a subscriber to the WallStreetCity website.
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you, so give us a try.

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http://clyde.investools.com/T/A24.133.315.1.42265
____________________________________________________________

2. Groups that are Heating Up

This week's analysis starts right at the top of the Big
Chart with the banking sector.  All three industry groups
within the sector - Banks {.BAN}, Banks/Savings & Loan
{.BSL}, and Banks/Savings Banks {.BSB} - saw their
respective rankings rise last week.  The primary driver
behind this move was an improved interest rate outlook,
though Joe Morford at Dain Rauscher Wessels noted that
merger activity is picking up.  Among the best performers
were Century South {CSBI} (announced merger with BB&T
{BBT}), Charter One Financial {CF}, Imperial Bancorp {IMP}
(testing resistance), and Comerica {CMA}.

Selected groups within the electronics sector improved their
rankings.  Electronics/Motors rebounded back to the 85th
percentile after briefly dropping from green to yellow, two
weeks ago.  The group is being powered by electronics
conglomerate Emerson {EMR}, which set a new record high.
The Electronics/Semiconductors {.ESE} group seems to have
found a bottom, though it still remains among the worst
performing industry groups.  Nonetheless, it's worth noting
that the group's ranking has fallen below the tenth
percentile just twice since the beginning of October.
Electronics/Specialty instruments began its recovery after
posting a big drop on the Big Chart two weeks ago, with
gains by Zygo {ZIGO}, Newport Corporation {NEWP}, and
Trimble Navigation {TRMB}.

Other industry groups that gained ground last week include
Chemicals {.CHE}, Computer/Components {DCO},
Drugs/Biotechnology {.DBI}, Leisure/Race Tracks {.LRT},
Retail/Stores/Discount {.RDI}, and Retail/Stores/Specialty
{.RSP}, which improved its ranking for the fourth consecutive
week.

To view the Big Chart click the link below.

http://clyde.investools.com/T/A24.133.315.2.42265
____________________________________________________________

3. Groups that are Cooling Off

Market sentiment finally coalesced with respect to the
entire utilities sector, and that sentiment was toward
profit taking.  Utilities/Diversified {.UDI} fell out of the
top quintile for the first time in five weeks and only the
second time since the beginning of October.  PG&E {PCG} fell
by more than 10 percent after the president of the California
Public Utilities Commission, Lorretta Lynch, said that
requests for electric rate increases by PCG and Southern
California Edison were premature.  Utilities/Gas/Producer-Gatherer
{.UPG} also dropped out of the top quintile, while
Utilities/Electric/Holding {.UHO} is threatening to turn from
green to yellow.

The beverage sector - which includes Beverages {.BEV},
Beverages/Beer & Ale {.BBA}, Beverages/Bottlers {.BBO},
Beverages/Distillers {.BDI}, Beverages/Soft Drink Syrup
{.BSD} - weakened as investors began funneling more money
into the tech sector.

Other groups that that fell on the Big Chart include
Energy/Oil-Gas/Domestic {.ODO}, Leisure/Casinos-Gaming {.LCG},
Vehicles/Truck-Trailers {.ATT}, and Homes/Hotels-Motels-Inns
{.HOT} - a group that we noted last week was likely to fall.

To view the Big Chart click the link below.

http://clyde.investools.com/T/A24.133.315.3.42265
____________________________________________________________

4. On the Radar Screen this Week

The retail sector could be worth watching over the next few
weeks as holiday shopping picks up.  Though many stores are
relying on discounts to draw in consumers, certain industry
groups within the sector have been improving their rankings;
these groups include Retail/Stores/Department {.RDE},
Retail/Stores/Discount {.RDI}, and the aforementioned
Retail/Stores/Specialty {.RSP}.  Stocks that are performing
well in these groups include Footstar {FTS}, Bebe Stores
{BEBE} and Target {TGT}.

To view the Big Chart click the link below.

http://clyde.investools.com/T/A24.133.315.4.42265
____________________________________________________________

5. Stock In Focus

Foostar {FTS} has more than survived the volatility of the
past several weeks with a six-week gain of 32.0 percent. The
company saw same-store sales increase 13.5 percent in
November and could be on its way to posting a strong December;
particularly since FTS has a history of exceeding analyst
expectations by notable margins.  Footstar operates the
Footaction and Just for Feet chains and, last month, agreed
to acquire the footwear division of J. Baker {JBAK}.

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6. Disclaimer

WallStreetCity,s Industry Group Analysis is published solely
for informational purposes and is not a solicitation or an
offer to buy or sell any stock, mutual fund or other security.
The information obtained from internal and external sources
is considered reliable, but has not been independently
verified for accuracy and completeness.  WallStreetCity, its
employees, and/or officers and directors, may from time to
time have a position in the securities mentioned and may sell
or buy such securities.

Trading involves risk, including possible loss of principle
and other losses.  Trading results may vary. No
representations are being made that these techniques will
result in or guarantee profits in trading.  Past performance
is no indication of future results.

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I spoke with Don Shindler this afternoon.  He is making the changes to the
Schaffer agreement and called me to clarify a couple of points.  He said the
document will be ready to by sent out by the end of the day today.  I told
Don that tomorrow morning delivery should be fine.  I called Kevin Schaffer
and left a message on their answering machine letting them know that the
revised agreement was going to be delivered tomorrow morning.  I asked Kevin
to call  me back today if delivery tomorrow represented some form of problem.

Don will send an email copy of this revised version to myself, Rusty, and Kay
Mann.

Don:  Please include Kathleen Carnahan in this email distribution.

Fred

Rusty Stevens@ENRON
11/17/2000 04:00 PM
To: "Shindler, Donald A. - CHI" <Donald.Shindler@piperrudnick.com>
cc: Fred Mitro/HOU/ECT@ECT
Subject: Re: Schaffer Option Agreement

Thanks Don for jumping on this.  I should have thought to send it to you as
well earlier.  I will be out Monday/Tuesday on business in Florida next week,
and on holiday for the balance.  In the interim, please call either Fred
713-853-5406 or my cell phone 713-562-0936 if you have any questions.  I dont
have the Schaeffer's lawyers number (or cant find it right now), but either I
or Fred can call Kevin and get it if necessary.  Their lawyer has probably
already attempted to call Karen by now.  Hope all is well with you, and that
you have a peaceful Thanksgiving.

Fred :  Kevin's number is 815-844-6493.

"Shindler, Donald A. - CHI" <Donald.Shindler@piperrudnick.com> on 11/17/2000
02:59:16 PM
To: "'Rusty.Stevens@enron.com'" <Rusty.Stevens@enron.com>
cc: "Gershon, Mark A. - CHI" <Mark.Gershon@piperrudnick.com>, "Way, Karen S.
- CHI" <karen.way@piperrudnick.com>, "Fred J. Mitro (E-mail)"
<fmitro@ect.enron.com>

Subject: Schaffer Option Agreement

Rusty--

Since both Mark and Karen are out for a week's Thanksgiving vacation, I will
be revising and completing the Schaffer Option. Pls feel free to call me
with any questions.

--Don
_____________________________________
Donald A. Shindler
Piper Marbury Rudnick & Wolfe
203 North La Salle Street
Suite 1500
Chicago, Illinois 60601
direct phone: 312/368-2175
direct fax: 312/630-5344
e-mail: donald.shindler@piperrudnick.com
www.piperrudnick.com

NOTE NEW E-MAIL ADDRESS, FIRM NAME AND WEB SITE!

> -----Original Message-----
> From: Gershon, Mark A. - CHI
> Sent: Friday, November 17, 2000 2:47 PM
> To: Shindler, Donald A. - CHI
> Cc: Townsend, Christopher J. - CHI; Way, Karen S. - CHI
> Subject: FW: Schaeffer Option Agreement
>
>  Don, can you handle in both Karen's and my absence?
> Mark
>
> -----Original Message-----
> From: Rusty.Stevens@enron.com [SMTP:Rusty.Stevens@enron.com]
> Sent: Friday, November 17, 2000 2:35 PM
> To: mark.gershon@piperrudnick.com
> Subject: Schaeffer Option Agreement
>
> Mark,
>
> Long time no speak.  I've been working on my tan down Florida way.  Can't
> say the zoning process is going as well as it would under your's and
> Karen's skillful care.  I wanted to forward this note to you so you could
> coordinate with Karen in her absence to get this document turned.  Thanks
> again.  - Rusty
> ---------------------- Forwarded by Rusty Stevens/Corp/Enron on 11/17/2000
> 01:29 PM ---------------------------
>
>
> Rusty Stevens
> 11/17/2000 01:31 PM
>
> To:   karen.way@piperrudnick.com
> cc:   Kathleen Carnahan/NA/Enron@Enron, Fred Mitro/HOU/ECT@ECT, Kay
>       Mann/Corp/Enron@Enron (bcc: Rusty Stevens/Corp/Enron)
>
> Subject:  Schaeffer Option Agreement
>
> I spoke to Kevin Schaeffer and agreed to the following items in exchange
> for finalizing this option.  This is the final real estate option that we
> will need to perfect this site (with the exception of gas pipeline
> easements).
>
>    Exercise of option.  I agreed that we would not exercise the option
>    until after March 15th, 2001.  I told him that since his parcel was not
>    for the location of the actual plant that we could delay exercising
>    until then.  He is buying another tract and wanted to use it as offset
>    for capital gains, which led to the next point.
>    Like-Kind Exchange Provision.  I agreed that we would incorporate the
>    ability for him to attempt to purchase another parcel in order for him
>    to be able to avoid capital gains taxes on the property.  Basically the
>    same language we used on the nearby Ledford tract is what I'm talking
>    about.  Should be very similar since its a small town and they will
>    undoubtedly talk about this eventually so we need to be consistent.
>    Farm Usage.  He seemed to think that the document was not entirely
> clear
>    that he would have the right to farm this parcel once we exercised our
>    purchase option.  I told him that was not true, and that our intention
>    was to let him have the right to responsibly farm the property any time
>    we were not using it for our own purposes.  I let him know that we
> could
>    not have any restrictions on moving onto the property and would pay for
>    any damages, but once we ceased use (for 120 days I think it was) then
>    he could request to re-commence farming operations and we would not
>    unreasonably decline his request.  However, I let him know that we
> would
>    reserve to once again begin use of the property for our purposes and
> our
>    only obligation would be to compensate him for crop damages.  I let him
>    know our motive was to keep as much open land in agricultural use for
> PR
>    purposes, and to get an Ag exemption.  If we weren't using it he could
>    farm it, and we had no intention of removing him and replacing him with
>    another tenant farmer (negligence on his part being an exception).
>
> Please feel free to work with his attorney and get these changes
> implemented promptly.  As you know, we have had solicitations from 3rd
> parties to buy this site, and having this tract secured is vital to the
> sites perfection.
>
>
____________________________________________________________________________
The information contained in this communication may be confidential, is
intended only for the use of the recipient named above, and may be legally
privileged.  If the reader of this message is not the intended recipient, you
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----- Forwarded by Tana Jones/HOU/ECT on 07/19/2000 08:41 AM -----

	Tom Moran
	07/18/2000 03:40 PM

		 To: Frank L Davis/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Tana
Jones/HOU/ECT@ECT, Samuel Schott/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Sheri
Thomas/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Bernice Rodriguez/HOU/ECT@ECT,
Brant Reves/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, David
Hardy/LON/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Lisa Gillette/HOU/ECT@ECT,
Molly Harris/HOU/ECT@ECT, Cynthia Clark/Corp/Enron@ENRON, Mary G
Gosnell/HOU/ECT@ECT, Enron Europe Global Contracts and Facilities, Enron
Europe Global CounterParty, Stephanie Sever/HOU/ECT@ECT, Bradley
Diebner/HOU/ECT@ECT, Stacey Richardson/HOU/ECT@ECT
		 cc:
		 Subject: EOL Credit Responses 07/18/00

Please find attached Credit's EOL responses for 7/18/00.

Regards,
tm


---------------------- Forwarded by Maria Sandoval/HOU/ECT on 11/22/2000
01:06 PM ---------------------------

Yolanda Sandoval <Yolanda.Sandoval@Halliburton.com> on 11/22/2000 12:46:29 PM
To:
cc:
Subject: FW: a heartwarmer: Special Delivery

Yolanda Sandoval
KBR Legal Dept.
*713-753-5986
 *713-753-7626
* yolanda.sandoval@halliburton.com

This email, including any attached files, may contain confidential and
privileged information 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 information
for the recipient), please contact the sender by reply email and delete all
copies of this message.  Thank you.

>      No one expected the letter marked Special Delivery.  Who sent it?
> Where was it from?
>      Richard shares a true and remarkable Thanksgiving story today.  You
> may want to grab a tissue, because before you're done reading, you'll have
> a new appreciation of what you're grateful for this holiday season.
> Thanks
> Richard!
> _________________________________
>
> SPECIAL DELIVERY
>
>      This past spring my wife passed away after a six-month battle with
> colon cancer.
>      She spent two months, last November and December, in a convalescent
> home.  I visited her every day and watched her condition change from bad
> to
> worse, although some days she would rally and seem to have a very good
> day.
> Her spirits rarely faltered as she maintained a cheerful outlook and
> seldom, if ever, complained about anything.
>      Each day, she had a request for some food that she had a craving for.
> These cravings ranged from all varieties of fruit to pizza.  On my visits,
> I always brought what she had requested.  She always had me help her with
> her laps, which consisted of her walking from her hospital bed to one end
> of the hospital corridor and back, once, twice and even three times, on a
> good day.
>      You see, she thought, and I hoped, that she would beat this terrible
> disease.  After New Years, I brought her home and she was very happy being
> in her own bed.  On the 12th of February, she quietly slipped away, with
> my
> daughter, a few close family members and me at her bedside.
>      Now with the holidays fast approaching my thoughts often turn to
> holiday celebrations of the past and my daughter often asks me what are we
> going to do without mom here?
>      The doorbell rang recently, and as I answered the door I was greeted
> by the postman.  He handed me a letter.  It was marked Special Delivery
> and
> as I read the return address, I saw that it was from the convalescent home
> where my wife had stayed.  I signed for the letter and thought to myself
> it
> was nice of someone from the home to remember us at this time of year.
>      There are no words to explain my elation as I took out the folded
> pages from the envelope and began to read the first page:
>
>      Thanksgiving, 1999
>
>      To My Beloved Family,
>
>        I do not know if I will be with you next Thanksgiving or not,
>        but please know that my spirit and my heart will be with you.
>
>        I am reminded this day of all the wonderful holidays that we
>        had together over the years.  Everyone was a precious day
>        to me, especially thinking about them now.  The two of you
>        must be strong and I am sure that you will be.
>
>        Richard, I hope that you decorate the table gaily with a nice
>        tablecloth, fine linen place mats, and our best china and
>        silverware.  Remember the two silver candle holders you
>        gave me on our 25th anniversary?  You could use those as
>        a center piece and maybe you and Tricia could each light
>        one candle as you say what you are thankful for.
>
>        Look in the big Betty Crocker cookbook?  Near the pages
>        on how to prepare a turkey for baking, you will find my
>        grandmother's old recipe and also aunt Clara's recipe for
>        fruit salad.  I am positive between you and Tricia you can
>        put together a dinner fit for a King -- and Queen, which
>        you both are.
>
>        Be assured, that wherever I am, I will in some way be
>        present with you and so you need not feel alone.
>
>        I am writing this from my hospital bed and Karen, the
>        charge nurse, is helping me . I told her to hold this letter
>        for me until next Thanksgiving and then to mail it Special
>        Delivery.
>
>        I must stop now as tears are blurring my vision.  Always
>        know that I love you both and will always be with you on
>        every occasion like this one.  I know that I can be proud
>        of you and that you will have a wonderful day.
>
>        May God and his blessings be with you always,
>                                             Mom