Start Date: 1/19/02; HourAhead hour: 7;  HourAhead schedule download failed. Manual intervention required.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002011907.txt
Error: dbCaps97Data: Cannot perform this operation on a closed database
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Error: dbCaps97Data: Cannot perform this operation on a closed database


A typical utility luncheon.
---------------------- Forwarded by Steven J Kean/HOU/EES on 12/09/99 05:40
PM ---------------------------

	Enron Energy Services

	From:  Michael Harris                           12/09/99 05:03 PM
	Phone No: 713-345-7557

To: Steven J Kean/HOU/EES@EES
cc:
Subject: How about lunch?

 - Lunch(1).jpg


R-C CANCUN
RETORNO DEL REY NO 36
CANCUN QROO, MX  77500
tel: 52-98-810808
fax: 52-98-810815

Hotel Information: http://www.ritzcarlton.com/mail.asp?Property=/CUNRZ

ARRIVAL CONFIRMATION:
Confirmation Number: 80864715
Guests in Room: 3
Name: MR JOHN LAVORATO
Guest Phone: 7136616096
Number of Rooms: 1
Arrive: 09 Feb 2001
# Nights: 9
Depart: 18 Feb 2001
Room Type: SUITE - EXECUTIVE
Guarantee Method:
Credit card guarantee
Cancellation Policy:
CANCELLATION PERMITTED-30 DAYS BEFORE ARRIVAL

SPECIAL REQUEST:
NON-SMOKING ROOM, GUARANTEED
CRIB, REQUEST NOTED

RATE INFORMATION:
Arrival Date: 09 Feb 2001
Room Rate:  509.00 Per Night. Plus Tax When Applicable
Rate Program: REGULAR RATE

PLEASE DO NOT REPLY TO THIS EMAIL
Any Inquiries Please call 1-800-241-3333 or your local
international toll free number.

Confirmation Sent: Fri Dec 15 09:02:46 2000

Legal Disclaimer:
This confirmation notice has been transmitted to you by electronic
mail for your convenience. Ritz-Carlton's record of this confirmation
notice is the official record of this reservation. Subsequent
alterations to this electronic message after its transmission
will be disregarded.


We have any contract in the cross (short?) hairs?

 -----Original Message-----
From: 	Kaufman, Paul
Sent:	Thursday, October 11, 2001 5:00 PM
To:	Dasovich, Jeff
Subject:	RE:

a.o.k.  Everything's fine.  Thanks for catching me up on the actions of those commies over in Nevada.  For a Republican stronghold, they act suspiciously like Democrats.

 -----Original Message-----
From: 	Dasovich, Jeff
Sent:	Thursday, October 11, 2001 2:45 PM
To:	Kaufman, Paul
Subject:

On a more serious note (notes).  Sue's out sick today (caught something in Houston, it seems). And seriously, I hope the meeting went well.


Attached please find the weekly cost report.  The only material change is a
reduction in Gleason Start-up Fuel/Power.  A credit for the sale of power was
not booked against the project until after closing.  I am working with Ben
Jacoby, Fred Mitro, and Chris Booth to review Estimate to Complete and Total
Projects.   We are focusing in on a couple of areas, one being the
Westinghouse Turbines.  We have withheld money for Liquidated Damage claims
for both Wheatland and Gleason.

Additionally, we have scheduled the final Nepco audit for August 28th -
30th.  We will be reviewing actuals, estimate to complete and ultimately the
final forecast.

Please call if you have any questions.  Thanks Amy 3-7805


Hot off the press - it's the October Newsletter!


Can you please forward this to Miriam Erickson.  It is a Petition for
Rulemaking that was filed with FERC 3/98.  Although FERC has not made this
filing into a rulemaking, FERC did cite many of the examples in App. D in the
RTO NOPR.  I would point out that Order No. 2000 would still not resolve
examples like  A.1 unless the "native load exception" is removed and all uses
of the transmission system are under the same tariff.  I would be happy to
talk further with Ms. Erickson about this.  Thanks. Christi


Gerald,

Here is the unprofitabilty Clause Wildhorse put in their proposed revised
San Arroyo contract to us.

3.01 Notwithstanding anything contained in this Agreement to the contrary,
if, in the sole opinion of Gatherer, the continued operation of Gatherer's
Gathering systems, or any portion thereof, or the providing of Gathering
Services hereunder, becomes unprofitable or uneconomical to Gatherer, for
whatever reasons, then Gatherer shall have the right to terminate this
Agreement upon thirty (30) Days advance written notice to Shipper.

Ken


I have received a telefax from Scottsborough, our good customer, which
attaches the lawsuit filed by the trucker against it and ICTS, in Alabama
state court.  The complaint prays for recovery of about $15,000, plus
interest and attorneys' fees.  I was not sent the service papers, which would
allow me to confirm Scottsborough's advice that its "return date" is December
16 (a Saturday, so it can't be right).  I was not sent any documents that
would allow me to confirm Scottsborough's representation that all the loads
(which were allegedly shipped from 4/10-5/23/00) were purchased from MG
Metals, freight prepaid.

I am sending a follow-up letter to Scottsborough asking for specific
additional documentation, including the service papers; you will be
blind-copied on the letter.  I will also have Becky, my legal assistant, (a)
call the Court to see if process has been issued against ICTS and whether it
has been served and (b) check on Pacer, the federal bankruptcy database, to
see if ICTS has filed for bankruptcy.

Meanwhile, I wonder if Nicole could advise me of/send me the following:

1. a copy of the MG Metals/Scottsborough master agreement, if there is one,


Eric --

Please give me a call.  I would probably recommend that you sign a new contract with Dick given that we did not intend to renew his option year.

Jim

 -----Original Message-----
From: 	Gadd, Eric
Sent:	Friday, August 24, 2001 5:38 PM
To:	Steffes, James D.
Cc:	Hartsoe, Joe
Subject:	Dick Ingersoll - Consulting Services Agreement

Jim,

I'm responsible for Asset Development in Enron Transportation Services.  Joe Hartsoe advises that Gov't Affairs has a consulting agreement with Dick Ingersoll for certain regulatory support activities.  I'd like to retain Dick to support commercial activities currently underway and, with your consent, have him bill against the existing agreement with Gov't Affairs.  I would outline the tasks + deliverables for him to complete in call-off letters.  Dick would continue his practice of submitting monthly invoices to Bernadette Hawkins, who could liase with Susan Wadle, my assistant, to validate charges and cost centers.

I understand that Dick's consulting agreement expires in October.  I plan to renew with him going forward.

Please advise how you wish to proceed.

Regards,

Eric Gadd


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D-Rock,  Attached are a clean and redlined copy with my comments.  I have
noted a couple of areas where I still have questions.

One that I didn't note in the agreement, is my concern that they could deny
us a new Delivery Point if we can't agree on terms.  We need to discuss this
one tommorrow.  I will shout out at ya tommorrow.

The Artist


---------------------- Forwarded by Mary Hain/HOU/ECT on 01/30/2001 03:56 PM
---------------------------

Mary Hain
01/30/2001 03:45 PM
To: Paul Kaufman/PDX/ECT@ECT
cc:
Subject: RE: Questions you requested

The available transmision capacity (ATC) "derate" did occur and has occured
everydaysince about the 24th.  This fact was verified to me by our ISO
customer contact on Friday.  Although we do not have the E-mails anymore, the
ISO sends our traders E-mails everyday about the ATC on the ties, so this
information is verifiable with the ISO.  Our customer contact didn't know
exactly what day it had started and I have not wanted to pursue this more
with the ISO, not knowing whether we wanted our identity divulged.  The
reason for the zero rating is that the ISO is in a Stage 3 emergency.  The
line was again rated at zero today.  I have been pursuing the following
approaches to getting this issue investigated and resolved.  I've talked to
Scott Miller at FERC and to Eric Thode in Houston.  Eric believes he can get
the press to investigate and divulge this information for us in the trade
press.  So check the trade press tomorrow.

Paul Kaufman
01/30/2001 02:41 PM
To: Cynthia.Sandherr@enron.com, CraigGannett@DWT.COM,
linda.robertson@enron.com, Mary Hain/HOU/ECT@ECT
cc:
Subject: RE: Questions you requested

I agree with Craig ... we need to be really, really careful about the earth
orbit issues identified below.   We shouldn't talk about the derating issue
unless we can:   (1) confirm the derating occurred and document it; (2) tie
the derating directly to action by the new board (i.e., determine that it
wasn't due to maintenance or some other physical occurence); (3) show a
direct impact on PNW prices that can't be easily explained in another way;
and (4) show a continuing pattern (in contrast to an isolated event).

---------------------- Forwarded by Paul Kaufman/PDX/ECT on 01/30/2001 02:40
PM ---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Gannett, Craig" <CraigGannett@DWT.COM>
01/30/2001 01:30 PM

To: "'Cynthia.Sandherr@enron.com'" <Cynthia.Sandherr@enron.com>
cc: "'Hain, Mary'" <mary.hain@enron.com>, "'Robertson, Linda'"
<linda.robertson@enron.com>, "'Kaufman, Paul'" <paul.kaufman@enron.com>
Subject: RE: Questions you requested

 This excellent material, and very important, but it's pretty
esoteric.  If you want to really kick the ISO and Davis in the shins, use
Mary's stuff about the ISO derating the transmission line at COB.   Assuming
it's true that the ISO has effectively shut down the northbound transmission
route at the Oregon border in order to hoard power, and that this raised the
market price in the NW by about $50-75 per megawatt-hour, and that this is
costing the NW $2-5 million per day (at least for the period that Mary
looked at), that will send the NW Senators into low earth orbit.  If we can
establish that this derating ruse was a change adopted by Davis's handpicked
ISO board, the NW Senators will escape Earth's gravitational pull.  For that
very reason, we have to be able to back up anything we say, and we need to
anticipate any defenses the ISO may have.  But if you want NW elected
officials to quit being so polite toward Davis, that will do it.

 Craig

-----Original Message-----
From: Cynthia.Sandherr@enron.com [mailto:Cynthia.Sandherr@enron.com]
Sent: Tuesday, January 30, 2001 11:21 AM
To: joshua_sheinkman@wyden.senate.gov
Cc: gpeters@epsa.org; Allison.Navin@enron.com; Steven.J.Kean@enron.com
Subject: Questions you requested

Joshua:

I found the Enron staff who have had the conversations with the Oregon PUC
so believe the attached Q&A meet your request.  If you need additional
materials, just let me know.
(See attached file: Ron Wyden Qs for Steve Kean.doc)

In addition, EPSA sent some questions they would like the Senator to ask of
any of the EPSA witnesses (Reliant, Calpine, Williams, or Enron) dealing
with the Impact of the Recent changes in the Management of the California
Independent System Operator:

Background:  The Cal ISO acts as the "air traffic controller" for the
interstate electric power grid in California.  The ISO determines who gets
access to the grid and under what terms and conditions.  It is the ISO that
helps ensure that access to the grid is truly open and non-discriminatory.
When the ISO was initially constituted several years ago, a "stakeholder"
management board was created that represented a wide range of market
interests---power sellers, generators, consumers, political leaders, etc.
After the power emergencies began last summer, this board was criticized as
too splintered and indecisive.  In a response to this perception and in an
effort to impose greater control over the ISO, the California state
legislature replaced the stakeholder board with a five-person board that
serves at the request of the California Governor.

QUESTION:  The Cal ISO has recently seen its management board changed from
one with broad stakeholder representation to one appointed by the
California Governor.  Given that California is a critical part of a larger
western regional power market, how can we ensure that regional power needs
are reflected in the decisions of the new state appointed Board?

ANSWER:  We really can't.  Most of the time, the Board has a limited role.
However, the "traffic controller" role becomes crucial when the power
crunch comes.  Every market participant needs to be worried that, during
times of real power emergencies, the Cal ISO Board will be too willing to
shoot first and ask questions later.  Companies with firm transactions
involving out-of-state entities may find their needs and commercial
interests sacrificed to prevent local political problems.  Instead of
robust, competitive regional markets, politicizing transmission decisions
practically guarantees an increasingly balkanized market.


Sheila:  Please make your request to Ted Murphy and Bill Bradford about the
above agreement which John has requested.  Thanks.  SS


Tom,

FYI. I hope to meet Nick Bambos this weekend.

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/23/2000
08:28 AM ---------------------------

Nick Bambos <bambos@stanford.edu> on 02/22/2000 12:54:15 PM
To: Vince.J.Kaminski@enron.com
cc: Ravi.Thuraisingham.Enron_Communications@enron.com, gappy@stanford.edu
Subject: Stanford Meeting

Dear Vince,

Giuseppe tells me that you will be visiting Stanford soon
and you you would like to meet with me. I would definitely
be glad to meet you and talk further.

Would you please let me know about the time of your visit
and your availability to meet. I look forward to seeing you.

Best Regards,

Nick

PS: Giuseppe and Amy came back very impressed by you are doing at Enron!
Thanks for hosting them.


-----Original Message-----
From: Crenshaw, Shirley
Sent: Monday, August 13, 2001 7:30 AM
To: Labbe, Anne; Kaminski, Vince J
Subject: FW: loan agreement papers

Anne:

See Kenneth's note below.  Where does this stand?

Thanks!

Shirley

-----Original Message-----
From: Kenneth Parkhill [mailto:parkhill@mit.edu]
Sent: Saturday, August 11, 2001 10:10 PM
To: Crenshaw, Shirley
Subject: loan agreement papers

Hi Shirley,

We're in Boston and are pretty much settled.  I'm wondering if you can help
me wrap-up some details before school starts.  I have not yet received the
final loan agreement papers from Enron.  I talked with Anne Labbe before I
left, and again this week, and she's said that she expected legal to finish
finalizing my papers, and I should have them by 8/10.  Have you heard
anything about my agreement?  The registration fee for school is due next
week, so I would like to have everything resolved pretty soon if possible.

Thanks for your help.

ken


Khymberly,

Based on my conversation with Jim Fallon,
we can extend the deadline for termination till
January the 30th for the following employees:

Model transfer

1. Mauricio Mora
2. Shravan Chopra
3. Praveen Mellacheruvu
4. Karthik Rajan

Shutting down the operation

1. Shirley Crenshaw
2. Anita DuPont
3. Therese Candella

Vince Kaminski


Mark,
Attached is an EOL Amendment for the Texaco entities.  EPMI does not trade power with Texaco so Janet does not need to see this amendment.

Stacy


---------------------- Forwarded by Darron C Giron/HOU/ECT on 05/09/2001
01:37 PM ---------------------------
From: Veronica Espinoza/ENRON@enronXgate on 05/08/2001 06:10 PM
To: Diane Anderson/NA/Enron@Enron, Derek Bailey/Corp/Enron@ENRON, David
Baumbach/HOU/ECT@ECT, Jean Bell/HOU/ECT@ECT, Patricia Boulanger/CAL/ECT@ECT,
Bob Bowen/HOU/ECT@ECT, Julie Brewer/NA/Enron@Enron, Lesli
Campbell/ENRON@enronXgate, Celeste Cisneros/ENRON@enronXgate, Sharon
Crawford/CAL/ECT@ECT, Richard Deming/NA/Enron@Enron, Russell
Diamond/ENRON@enronXgate, Cindy Feldman/CAL/ECT@ECT, Darron C
Giron/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT, "Guidroz, Walter"
<Walter.Guidroz@ENRON.com>@SMTP@enronXgate, Larry Joe Hunter/HOU/ECT@ECT, Kam
Keiser/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Errol
McLaughlin/Corp/Enron@ENRON, Nidia Mendoza/ENRON@enronXgate, Tom
Moran/ENRON@enronXgate, Bianca Ornelas/NA/Enron@Enron, Sarah
Pernul/CAL/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, Tanya
Rohauer/ENRON@enronXgate, Dianne Seib/CAL/ECT@ECT, Linda
Sietzema/CAL/ECT@ECT, Kim S Theriot/HOU/ECT@ECT, Ellen
Wallumrod/NA/Enron@ENRON, Tiffany Williams/NA/Enron@Enron
cc: Jason R Williams/ENRON@enronXgate, Darren Vanek/ENRON@enronXgate, Rudwell
Johnson/ENRON@enronXgate, Aparna Rajaram/ENRON@enronXgate, Brant
Reves/ENRON@enronXgate, Russell Diamond/ENRON@enronXgate
Subject: Credit Report--5/8/01


I don't think that we should have any volume on this deal.  It seems like Jan
2000 was added after the fact to assist with allocations.  But it was later
determined that we didn't purchase anything from Copano.

D

	Kimberly Vaughn
	01/30/2001 09:40 AM

To: Daren J Farmer/HOU/ECT@ECT
cc: Cynthia Hakemack/HOU/ECT@ECT
Subject: Deal 93481

Daren,

I'm looking into this deal.   There is no volume on this deal for January
00.     Should this deal have had some volume on it.
It was never scheduled with volume  however, in January it received flow of
3461 due to ranking in POPS.  It was taken to zero once the actuals came in.

Please let me know if you intended to have volume on this deal for Jan 00

THANKS


No plans, call you later.

Debra Perlingiere
Enron North America Corp.
Legal Department
1400 Smith Street, EB 3885
Houston, Texas 77002
dperlin@enron.com
Phone 713-853-7658
Fax  713-646-3490


-----Original Message-----
From: 	Nicolay, Christi L.
Sent:	Monday, October 22, 2001 11:57 AM
To:	Kitchen, Louise; Dietrich, Janet; Delainey, David; SMITH, Douglas; Lavorato, John; Black, Don; Forster, David; Duran, W. David; Belden, Tim; Calger, Christopher F.; Foster, Chris H.; Black, Tamara Jae; Aucoin, Berney C. ; Furrow, Dale; Meyn, Jim; Harvey, Claudette; Presto, Kevin M.; Jacoby, Ben
Subject:	FW: Summary RTO Week Day 2 -- Planning & Expansion

FYI.

TJ and Claudette -- please forward to your groups.  Thanks.

 -----Original Message-----
From: 	Walton, Steve
Sent:	Wednesday, October 17, 2001 10:17 PM

  RTO Week
Day 2 -- October 16, 2001
Transmission Planning & Expansion
The afternoon panel discussed transmission planning and expansion. The panelists were: Jose Degado--CEO American Transmission Company, Michael Dworkin--Chair Vermont PSC, Mark Maher--VP Transmission Business Line, Bonneville Power Administration, Lara Manz--PSE&G, Masheed Rosenqvist--National Grid, Steve Walton--Enron.
General Observations
The Commissioners were all present although the did leave and return from time to time.  Commissioner's Breathitt and Massey were the most active in questioning.  The FERC Staff were active in asking questions after the initial presentations, moving along the discussion by asking questions.  There was some reference to the morning discussion of congestion management, however, there was no discussion of the merits of the various types of transmission rights.  There was a good deal of consensus around the concept of the RTO Planning Process being first a provider of information to the market (where are problems, how might they be solved, etc.) and that the where possible that expansion be funded by market participants who would benefit.  There was a good deal of discussion of "least cost planning" and the identification of options which are not transmission related.  All agreed there had to be backstop authority to build transmission, however then the challenge is who pays for it, which raises the need for dispute resolution.
Opening Statements
Jose Delgado: ATC is a transmission only company with MISO as the system operator.  They view everyone as a customer whose needs are to be met.  They were formed by divestiture by IOUS, coops and munis and with a $500 million asset base initially. Their current ten year plan will add $1billion of investment.   Their top priorities are connecting generation and load.
Michael Dworkin: Because transmission is a common good, construction affects all parties not just one party.  The environmental and permitting of lines requires a balance of benefits with costs and a long range view.  The idea of joint boards should be considered for dealing with multi-state projects, although FERC has show little interest in joint boards they have been used by FCC.  State input needed because of the local needs and impacts which must be considered.
Mark Maher: FERC must consider the unique characteristics of the West when considering congestion management.  LMP is not a good fit to hydro systems with their multiple use obligations.  RTO West is developing a planning process which will give the RTO the freedom to develop options as we learn in the future.  The RTO needs a strong centralized planning process.
Laura Manz: The various aspects of planning are connected.  Pricing (LMP) is the key to getting the right signals for expansion of transmission and resources.   No competitor should have an advantage over another.  The RTO needs a central planning process but it shouldn't push solutions.  The market should decide on solutions.
Masheed Rosenqvist: The morning discussion of congestion management talked about hedging against risk.  The planning discussion is not about what we have now, but about how to avoid future congestion.  The Commission has taken conflicting positions in different cases.  The issues that need to be answered are:  How can merchant transmission be compensated?  Should transmission projects be open to RFPs?  Is FERC open to market based pricing for expansions?
Steve Walton:  The most important thing for FERC to do for expansion is to settle the matter of industry structure do away with the uncertainty that has frozen transmission investment.  The RTO debate has been going on for 5 years or more and needs to be settled.  For expansion to go forward, there needs to be a clear property right which accrues to the expanding party.  You are always going to have muddy issues in planning.  For instance if a 138 kV line is all that is needed to day, but future considerations of scare right-of-way say a 345 kV line should be built, who pays for the extra cost.  In order to resolve such matters the planning process must include a dispute resolution process, appeal able to FERC, to decide such matters.
Discussion
Kevin Kelly asked about he fact that some parties benefit form current congestion so how does a stakeholder process get things built when some oppose.  Most agreed that if a party wants to fund construction it should be built with the beneficiaries funding.  Michael Dworkin expressed concerns about use of eminent domain to build which means a benefit test must exist to say this is the best solution, i.e. least cost planning.  This lead to discussion of the need for the RTO to be provider of information to all parties so they can make intelligent decisions.
Commissioner Massey asked about whether the system was (a) under built and needed lots of expansion so don't worry about overbuilding or (b) transmission planning should consider all options before construction of new facilities.  The panel agreed that pricing needs to be a prime determinant in the process.  Michaela Dworkin worried that overbuilding distorts decisions.  Laura Manz felt that the term "under built" is a secondary effect of not having proper pricing of locational prices to guide parties.
Dick O'Neil asked if LMP will work in the West.  Mark Maher said it wouldn't.  Laura Manz said it applies everywhere because of physics, they manage hydro facilities in PJM.  Michael Dworkin said LMP means an explicit measure of cost of congestion and the value of generation at locations and ought not to be rejected just intelligently designed.  BPA is looking pricing model but LMP won't work.  Steve Walton said LMP needed for real time dispatch, but given the nature of the Northwest hydro system it must have some "tweaks" like bilaterals and allow operator self-schedule output levels to permit  river coordination.  Hydro system optimizes over weeks and months to maximize firm energy production not on an hour to hour basis.  PJM has hydro, but not 70% as in the Northwest.  Implementation will be different because such thing as unit commitment are different when you have primarily hydro and base load coal.
In the summation at the end of the panel, four principles were listed:  (1) RTO must provide information, (2) RTO should identify solutions, (3) RTO should be unbiased and (4) the RTO should be accountable.  The disagreement was over the last two points, Michael Dworkin felt that #3 (unbiased) was critical and that #4 (accountability) was accomplished by having regulators involved in governance.  Jose Delgado said and Transco can't be unbiased since it provides services, although the ISO above it can be, but accountability is based on loosing your investment if you make an mistake.  This last point really comes down to a preference for ISO over Transco forms and the tension which exist because unbiased and accountability issues.
Steve


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===============================================================
SCIENTECH IssueAlert, November 13, 2000
The New Power Company: Going Green While Stock Price Drops
By: Will McNamara, Director, Electric Industry Analysis
===============================================================

The New Power Company (TNPC, NYSE: NPW), which bills itself as the first
national residential and small business energy provider, announced that
it has signed a Letter of Intent with Community Energy, Inc. to provide
wind-generated energy to customers in the Philadelphia area. Under the
terms of the agreement, TNPC will market wind power supplied by Community
Energy from a site under development in the mountains of northeast
Pennsylvania.
The new wind turbines are scheduled to come online by the end of 2001.

ANALYSIS: This is an interesting development, especially considering that
TNPC is still embroiled in a battle with Green Mountain for a significant
number of customers that TNPC recently secured in a bidding process from
PECO Energy. This could be an attempt on the part of TNPC to appease customers
who might have preferred to be served by Green Mountain. On the other hand,
it could be a shrewd marketing strategy from the energy service company,
founded earlier this year by Enron (along with partners AOL and IBM).

As you may recall, just two weeks ago TNPC announced that it had reached
an agreement with PECO Energy to supply "competitive default service" for
approximately 300,000 of PECO's residential electricity customers who have
not selected a competitive energy service provider. Green Mountain formally
challenged this agreement, arguing that the PECO/TNPC agreement is "not
in the public interest" and that Green Mountain should have been awarded
the right to serve as the default provider for the customers in question.
Thus, it seems curious that TNPC has just now announced the addition of
wind power to its portfolio of services. Up to this point, TNPC has been
working to aggressively acquire customers from other energy providers,
such as the approximately 285,000 natural gas and 20,000 electricity customers
it purchased from Columbia Energy Group. The acquisition of the customers
in PECO's territory was a major coup for TNPC, which is still in start-up
mode. Although TNPC claims that it was fairly awarded the customers from
PECO, the addition of wind power could be seen as an attempt to quell further
objections from Green Mountain or perhaps the beginning of a new identity
as a provider of renewable energy.

Community Energy, the company from whom TNPC is securing the wind power
that it will market, began making wind power available to businesses in
Pennsylvania last year. TNPC customers will be able to buy wind energy
in fixed kilowatt-hours, allowing for more customized service and tailored
use of power. Interestingly, the Commonwealth of Pennsylvania just renewed
a contract with Green Mountain in which Green Mountain will supply about
37,500 MW of green power to aggregated state agencies. This indicates that
desire for green power is quite strong in Pennsylvania, and any energy
provider wanting to market in the state would be wise to include green
power in its portfolio. Thus, while renewable energy was not a fundamental
component of TNPC's original business plan, the company appears to be moving
in this direction (at least in states where it is strategic to do so).

However, this announcement comes on the heels of TNPC's announcement of
its third-quarter earnings and a sudden drop in its stock price. TNPC's
revenues for 3Q 2000 were $18.2 million, derived from the sale and delivery
of electricity and natural gas to retail customers in just two states
(Pennsylvania
and New Jersey). Gross profit was $1.3 million, or 7.2 percent of revenues.
Yet, the loss on earnings before income tax (EBIT) was $68.3 million. The
net loss for the quarter was $69.9 million, or $2.96 per basic share. TNPC
reiterates that it is a new company with a very limited operating history.
Therefore, the company contends that its year-over-year comparisons are
not meaningful or indicative of future performance. The company's goal
for 4Q 2000 is to achieve revenues of approximately $60 to $63 million,
with an estimated year-end customer count of 340,000.

Eugene Lockhart, TNPC's CEO, said he was pleased with the 3Q performance.
Lockhart contends that TNPC "achieved both our overall financial performance
targets and business objectives," and referenced the fact that the company
is still building its "systems and architecture" so that it can continue
to penetrate additional competitive markets. In addition, TNPC has raised
approximately $546 million in funding which the company is using primarily
to build its brand identity in this early stage of its operation.

However, despite its positive outlook, after TNPC made its earnings
announcement
its shares took a nosedive, perhaps reflecting uncertainty about the energy
provider's ability to meet its objectives. The shares closed last Friday
at $9, which is a dramatic drop from the average price of $25 before the
3Q earnings announcement. TNPC issued its IPO on Oct. 5, 2000, at a price
of $21 per share, which at the time seemed quite high for a start-up energy
company with a limited track record. A day after its opening, the stock
closed at $27 per share. The stock was received so favorably for two reasons,
in my estimation. First, TNPC has been bankrolled by some hefty investments.
In two separate, private placements, investors such as Enron, GE Capital
Equity Investments and DLJMB Partners (among others) put up about $214
million in start-up capital in exchange for shares in the company. Enron
is the majority owner of TNPC, with 57-percent control. Second, and perhaps
more importantly, earlier this year Enron transferred its residential and
small commercial retail operations in California and Ohio to TNPC. Together
with the Columbia Energy Group acquisition, TNPC has come out of the gate
running with a significant beginning customer base of over 325,000 customers.

Yet clearly investors are now questioning the strength of TNPC stock, and
the company is at a crossroads. In order to keep its momentum on track,
TNPC needs to do two things. First, it needs to acquire additional customers
to expand its base. Key states such as Texas or Ohio offer the best
opportunity
to secure customers since competition is unfolding at a more rapid pace
in those states. Second, as I discussed in my IssueAlert from Nov. 6, 2000,
energy stocks that are based on new technologies in general and alternative
fuels in particular are being received particularly well by investors.
Consequently, it is a very shrewd move for TNPC to suddenly announce that
it will be a provider of wind power. This could potentially send the stock
price on a upward climb again, despite the fact that financial success
of the company is still unproven.

Regarding the customer base expansion, Ohio looks like the next state that
TNPC will target. Just last week, the company filed an application with
the Ohio Public Utility Commission to provide electricity in the state.
Yet, it's clear that TNPC is still fine-tuning its marketing approach.
In Ohio, it is offering customers competitive energy prices, flexible payment
and pricing choices, and frequent flier miles as a marketing incentive,
but there is no mention in TNPC's application that it will provide renewable
energy in Ohio.

Moreover, several questions remain. Does TNPC plan to carve out a new role
for itself as a renewable energy provider, or it just providing wind power
in Pennsylvania to preserve its market edge in the state? Will the addition
of wind power positively benefit the stock price of TNPC? Will TNPC
demonstrate
revenues of $63 million in 4Q 2000? And where will the company's next
acquisition
of customers take place? All of these questions directly impact the future
success of TNPC.
===============================================================

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From www.cfainc.org:

CFA International Cat Show. George R. Brown Convention Center, 1001 Avenue
of the Americas. Adults: $7.00; Seniors & Children 6-12: $5.00; Children
under 6: Free. Show Hours: Fri., Sat. & Sun. 9 a.m. - 5 p.m.

-----Original Message-----
From: Watson, Kimberly [mailto:Kimberly.Watson@enron.com]
Sent: Monday, November 12, 2001 1:50 PM
To: jwatson@nwdiagnostic.com
Subject: RE: Cat show?

I'm trying to take next week off.  Not sure I can swing Friday yet.  I
might be able to leave early.  I am definitely game for attending.  Does
it start on Friday and go through Sunday?  ILY, K.

-----Original Message-----
From: John Watson [mailto:jwatson@nwdiagnostic.com]
Sent: Monday, November 12, 2001 12:39 PM
To: Watson, Kimberly
Subject: Cat show?

...in fact, would you consider taking this Friday off from work?  I just
talked to Bob Corrigan and scheduled to meet him for lunch and we could
both
see him......and we could catch the CFA show, too...

JW

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


John D. Martin
Carr P. Collins Chair in Finance
Baylor University, Finance Department
PO Box 98004
Waco, TX 76798
Phone: (254) 710 4473 (o) 4474 (sec)
 (254) 757 0852 (Home)
Fax  : (254) 710 1092 (Fax)
J_Martin@Baylor.edu
http://hsb.baylor.edu/html/martinj/home.html


----- Forwarded by Jeff Dasovich/NA/Enron on 03/06/2001 11:11 AM -----

	Jennifer Rudolph@EES
	03/06/2001 10:11 AM

		 To: CA Team
		 cc:
		 Subject: NEWS: san diego 6.5 cent cap

*  SBX1 43 (Alpert) was passed out of the Senate Appropriations Committee
yesterday
*  This is the language that freezes all SDG&E customers at 6.5 cents/kWh
retroactive to Feb 7, 2001 until Dec 31, 2002

BILL STATUS REPORT
http://www.leginfo.ca.gov/pub/bill/sen/sb_0001-0050/sbx1_43_bill_20010305_stat
us.html

BILL
http://www.leginfo.ca.gov/pub/bill/sen/sb_0001-0050/sbx1_43_bill_20010301_amen
ded_sen.html


You've got the wrong Susan Scott...you may want to try her married name (which I, unfortunately, don't know).

 -----Original Message-----
From: 	Kinser, John
Sent:	Tuesday, August 28, 2001 10:11 AM
To:	Scott, Susan M.
Subject:	FW: CG&E Agreements

 -----Original Message-----
From: 	Merola, Jeff
Sent:	Monday, August 27, 2001 5:42 PM
To:	Kinser, John
Cc:	Miller, Jeffrey; Baughman Jr., Don; Ogenyi, Gloria; Sharfman, Guy; Herndon, Rogers
Subject:	CG&E Agreements

JD,

To follow up on our earlier meeting, attached are the following documents for CG&E:

	- TSA network handbook which summarizes all requirements
	- Request for Network Transmission Service (Network Application)
	- Request to designate a New Network Resource (only required when we are ready to designate a resource)
	- OATT Tariff Attachments that includes Attachment F, Network Service Agreement and Attachment G, Network Operating Agreement
	- CG&E TSA, Transmission Scheduling Agent Agreement

If EPMI does not already have the Network Transmission Agreements in place, then CG&E indicated that the process was to first fill out the Network Application and then they will send the Network Service Agreement and the Network Operating Agreement.

My contacts at CG&E have been Paul Jett  (513) 287-1770 and Steve Averbeck (513) 287-2876.  The government affairs contact is Gloria Ogenyi x 58202.

Thanks,
Jeff

 << File: TSA network handbook rev mar152001.pdf >>

 << File: request_for_network_transmission_service_for_retail_load.doc >>  << File: request_to_designate_a_new_network_resource.doc >>  << File: tariff_Attachments.html >>  << File: CG&E TSA.doc >>


Kim:

Thank you for dinner on Tues.  As discussed, pls find EPE's draft lont-term
gas contract for your review.

Barry

(See attached file: EPE LT gas contract Feb 28 2001.doc)
 - EPE LT gas contract Feb 28 2001.doc


Check out how I entered deal 289172, the final prices are $4.415, $4.435,
$4.455, and $4.475.

Comment?


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 03/14/2001
08:42 AM ---------------------------

"Chris Strickland" <chris@lacimagroup.com> on 03/13/2001 12:48:39 AM
Please respond to "Chris Strickland" <chris@lacimagroup.com>
To: "VinceJKaminski" <Vince.J.Kaminski@enron.com>, "Vince \(home\)"
<VKaminski@aol.com>
cc:
Subject: EPRM article

Hi Vince,
?
As always, it was good to see you again in Houston  - we all enjoyed the meal
very much, the restaurant was a good  choice.
?
It's that time again I'm afraid. Can you pls cast  your eye over the
attached?and, if at all possible, get back to me in the  next few days - I
have to deliver something to London by Friday.
?
How's the course going at Rice? Not too much work I  hope.
?
Best regards.
?
Chris.
?
 - EPRM_09_fwd_vol_estimation.doc


How Texas firm outfoxed state, PG&E

Kevin Fagan, Bernadette Tansey, Chronicle Staff Writers
		?
		Sunday, May 13, 2001

		El Paso Energy was facing ruin.
		It was the mid-'90s, and California's energy overseers were sure deregulation
was going to drive the cost of natural gas through the floor. So Pacific Gas
and Electric Co., with the happy acquiescence of the state, dumped a huge,
long-term gas contract with El Paso.
		For the state, the decision was a no-brainer: PG&E was buying more space on
gas pipelines than it needed.
		For El Paso, though, it was a disaster. The company started handing out pink
slips like they were candy.
		But in the long run, it wasn't El Paso that would end up on its knees. It
would be PG&E and the state of California.
		That pipeline space that the utility and regulators saw as unnecessary would
soon become precious -- and El Paso, led by a law-sharp chairman with
bare-knuckle smarts, would turn itself into the biggest natural gas firm in
the world.
		So big, in fact, that in the eyes of vengeance-minded lawmakers and
regulators, El Paso has become a poster monster for how Californians came to
be plagued by rolling blackouts and sky-high energy bills.
		"They didn't mind seeing all of us at El Paso being dealt a terrible blow
back then," said Randy Wu, an El Paso manager then. "And now . . . well,
let's just say they should have planned better." -- -- --
		It's not like El Paso was some new kid on the block.
		The company was founded in Texas in 1928 and stayed a local concern until
1947, when it laid out 700 miles of pipeline to deliver gas to California.
		It grew steadily from there until 1964, when the U.S. Supreme Court decided
El Paso was getting too big and ordered it to divest its pipeline holdings in
the Northwest. That set off a long tumble that William Wise, who had started
at the company as a general counsel in 1970, set out to reverse when he took
over as president in 1989.
		Wise, a 56-year-old whose lean build reflects both his passion for running
and his reputation for driving himself hard, is a rare bird in the world of
oil.
		The University of Colorado law school graduate has mastered both the legal
side of his "litigious" industry, as he once called it, and its hardball
economic strategies -- skills he honed by surfing the bust-boom cycles of his
business at its epicenter, Texas.
		Those skills came in handy when El Paso got the hammer blow from PG&E in 1996
and 1997.
		PG&E had been buying extra space on pipelines crossing into the state at the
Arizona ghost town of Topock -- enough to import a whopping 1.1 billion cubic
feet of natural gas a day.
		The trouble for El Paso was that when PG&E dropped the contract for the
pipeline space, $170 million of the company's annual revenue was erased.
		"It seemed like everyone thought the company was toast," said Wu, the former
El Paso manager. "Of course, California didn't care at all."
		But Patrick Power, the attorney hired by El Paso to plead the pipeline
company's case before the state Public Utilities Commission back in 1996,
could see trouble looming for the state.
		If PG&E and other utilities didn't keep the pipeline capacity to meet future
needs, he warned, they would probably regret it later. His words fell on deaf
ears.
		"The mentality at the PUC, PG&E and Southern California Gas was, 'This will
be El Paso's problem,' " Power said. -- -- --
		Wise reacted to the loss of the PG&E contract by taking no salary himself for
a year and freezing his executives' pay, Wu said. While laying off more than
one-third of the company's workers, he and his staff negotiated a hefty
settlement from PG&E and other companies in exchange for their having dropped
the pipeline space.
		Then Wise set off on a plan to absorb other pipeline companies so he could
expand his system of delivering natural gas throughout the United States.
		"Bill Wise knew California had turned its back on the company, so he had to
get creative," Wu said of Wise, who has declined interview requests from The
Chronicle.
		"Attorneys generally don't have a lot of common sense in my mind, but Bill -
- he's got extra," said former El Paso Mayor Larry Francis. "He cuts his
losses in a hurry, and he recognizes when he has to move on. And so he
moved."
		Within a few years, Wise stretched the now Houston-based company to full
"wellhead to wire" operations, running everything from natural gas drilling
to electric generation plants. Before El Paso embarked on this expansion,
California constituted fully two-thirds of El Paso's natural gas sales --
much of that to PG&E.
		The strategy was that if the state was going to ditch El Paso, El Paso would
make sure its reach became so extended in other directions that it would
never be dependent on one market again.
		Wise's company scooped up interests in 40 electric power plants in 11 states
by April 2000. Along the way, it spent billions acquiring enough pipeline
companies to spread the El Paso reach along 58,000 miles of pipe nationwide,
from Bakersfield to Boston.
		"The company was a very traditional gas company until then," said Fred
Pickel, a Los Angeles energy consultant who has observed El Paso since the
1970s. "Wise, though, understands the street-level complexities of the
business, and what he had the company do was partly smart and partly logic.
		"He was just able to see the possibilities that nobody here in California was
able to see."
		But some believe that what El Paso did to take advantage of those
possibilities took unfair advantage of California.
		In his cluttered downtown San Francisco office at the PUC, staff attorney
Harvey Morris thought he "smelled a rat" as long as three years ago.
		Morris, a natty 47-year-old graduate of Boalt Hall School of Law, takes on
the look of a determined terrier when he outlines his suspicions about El
Paso -- and he's been carrying that look a long time now.
		After losing PG&E, El Paso leased the utility's entire block of pipeline
capacity to another Texas gas and electricity giant, Dynegy. Gas experts were
stunned that one firm would bid for all that space -- but they, and Morris,
were even more surprised by what followed.
		Dynegy didn't behave the way PG&E and California officials had expected
energy companies to behave in the era of deregulation.
		Like PG&E, Dynegy didn't need all that pipeline space to serve its own
customers. But unlike what PG&E did when confronted with all that extra
space, Dynegy didn't resell it at a huge discount. In fact, Dynegy didn't
sell any of the space. Instead, it raised the price so high that seemingly
nobody wanted to buy it.
		Competing gas marketers were alarmed. They suspected that Dynegy was
collaborating with El Paso to constrict the supply of gas flowing into
California so prices would rise. Great for anyone with space reserved on the
pipeline -- but disastrous for those left out in the cold.
		In 1998, having convinced his bosses at the PUC that what El Paso was doing
on the Dynegy contract was anticompetitive, Morris filed the first of many
complaints with the Federal Energy Regulatory Commission. He's still pursuing
them.
		As it turned out, spot prices didn't rise while Dynegy held the contract; gas
shippers could still find space on other pipelines for less money. Dynegy let
the contract lapse in late 1999.
		Not long afterward, the pipeline contract wound up with El Paso's market
affiliate, El Paso Merchant Energy. And that's when things started to get
really serious, Morris says.
		El Paso's own marketing arm now controlled more pipeline space heading into
Southern California than any other trader by far -- just as the demand for
gas was about to soar.
		In his many filings, in which the PUC has been joined by Southern California
Edison and others, Morris contends that El Paso Merchant Energy prevented
pipeline space from being used.
		"They basically kept so much of the capacity to themselves, the prices went
through the roof," he said. "It was the same as closing off part of the
pipeline."
		El Paso officials, for their part, say market rates started soaring in 2000
simply because the demand for gas overwhelmed supply. They say they never
charged more than what industry rules allowed, and that attempts to prove
otherwise are preposterous.
		And thus far, except for a mild rebuke here and there on technicalities, the
free-market-minded Federal Energy Regulatory Commission has not concluded the
company did anything wrong -- though a commission hearing is set for tomorrow
on the latest allegations filed by PG&E, Edison and the PUC.
		Edison estimates that El Paso's "manipulation" at Topock jacked up rates all
over the industry so badly that state gas buyers had to pay $3.8 billion more
than they should have just in the past year.
		Whatever the reason, the bottom line is that gas prices in California have
been anywhere from two to 10 times as expensive as on the other side of the
border in Arizona, and in almost every other state.
		Once prices started to rise at Topock, gas marketers throughout California
followed suit -- and the ripple spread quickly.
		Gas prices for consumers started going up. The rise also propelled
electricity costs skyward, because three out of every five electricity plants
in California run on natural gas.
		The firms that own those plants then jacked up electricity prices to the
utilities, like PG&E, which had shed many of their own plants as part of
deregulation.
		The problem for PG&E and other utilities is that they couldn't pass those
higher electricity costs on to their customers, because electricity rates
were still regulated.
		So the red ink started to gush, in the hundreds of millions of dollars. And,
		with gas prices still higher here than anywhere else, it is still gushing.
		But not for El Paso. -- -- --
		El Paso Energy rose from its financial emergency in 1996 to become not just a
survivor, but a $50 billion behemoth involved in virtually every aspect of
the energy industry in California and much of the rest of the United States.
		The company, renamed El Paso Corp. this February, is now practically printing
money. The company's revenue shot from $1 billion in 1995 to $22 billion last
year; its profit last year alone was $652 million, its highest ever. Wise's
compensation package reportedly totaled $20 million.
		And it's not just with gas that El Paso is making its money. Among its
holdings are 19 small power plants serving PG&E and Southern California
Edison.
		Under El Paso's contracts, the price of that electricity automatically rises
when the price of gas rises. That's true even at the power plants that don't
use any natural gas.
		All told, in just a bit more than one year alone, consultants for Edison say
El Paso earned an extra $85 million thanks to electricity produced by those
plants.
		And all this is blossoming for El Paso while PG&E wallows in bankruptcy
court, billions of dollars in debt with no relief in sight.
		The one cloud on El Paso's horizon: A host of California legislators,
industry experts and state regulators suspect that El Paso's sunny profit
picture owes a lot to what happened with that huge block of space on El
Paso's natural gas pipeline that PG&E had been so happy to surrender.
		The hearing before federal regulators is looming tomorrow, and just last
month the state Assembly Subcommittee on Energy Oversight dragged three top
El Paso executives -- but not Wise -- to Sacramento to testify on the matter.
		It was the first time the company has ever felt such heat in this state. And
though the executives grimly waved off reporters' questions as they strode
from the room, company spokeswoman Norma Dunn stayed behind to insist that
the accusations will blow over, "because there's nothing to them.
		"The thing to remember is that we have been in this state for more than 50
years, and we want to continue being here," Dunn said. "We take this matter
very seriously. . . . We want to be cooperative."
		Accusations that El Paso caused price spikes by maneuvering to hold pipeline
space hostage amount to "nothing but conspiracy theories," she said.
		The Assembly panel, however, concluded that both El Paso and Dynegy had
manipulated the market at an enormous cost to California consumers.
		"The numbers tell the truth," the subcommittee said in a report obtained by
The Chronicle. "The exorbitant prices cannot be defined away by regulators
and bureaucrats, or explained away by corporate lawyers' wordplay." The
report was produced by three Assembly Democrats and two Republicans.
		Wise, when he addresses the accusations, says he is mystified why state
lawmakers are mad. He points to company plans to expand pipelines heading
here and to even build a power plant at San Francisco International Airport.
		When it comes to California, "El Paso has always tried to be a part of the
solution, not the problem," he told a gas industry newsletter in December.
		State lawmakers' attempts to pry extensive hard numbers from El Paso have
been met with resistance from the company, which calls them proprietary
information. And judging by Morris' experience, chasing El Paso to the ground
may take the Legislature quite a while, if that's what it decides it wants to
do.
		Morris found that as he filed complaint after complaint against the company,
the Federal Energy Regulatory Commission would either rule against the PUC or
put the filings off so long that they were moot when they came up.
		The Assembly subcommittee's report was scathing in regard to the commission,
		saying its approval of El Paso pipeline contracts "raises serious questions
about whether it met its statutory duty under the federal Natural Gas Act to
protect consumers from unjust and unreasonable rates."
		The commission did not send anyone to the Assembly hearings and has refused
to comment on its rulings.
		By the time the El Paso Merchant Energy contract expires May 31, opening the
crucial block of pipeline capacity to what critics say is true competition
for the first time in more than three years, it will be far too late, Morris
said.
		"The damage was done long ago," Morris said. The state and its utilities are
on the hook for billions in debt, money for last winter's bills has already
left consumers' pockets -- and regulators fear prices are unlikely to come
down soon.
		"The market got set, and now we're in trouble," Morris said. -- -- --
		PG&E, for its part, sees the whole mess through the eyes of a victim.
		The utility had paid $560 million to hold its excess El Paso capacity from
1993 to 1997, and the PUC had forbidden the company to recover $167 million
of that through customer rates. And in 1996, the PUC and ratepayers were
clamoring for lower power bills, and there was a huge amount of pipeline
space in the state that wasn't being used.
		So when you're trying to cut costs, what better to cut than something you
don't need? said Dan Thomas, PG&E's director of gas transmission.
		"I still think it was the right decision to relinquish the capacity," he
said.
		Still, there's no denying the numbers. At latest count, PG&E owed El Paso
more than $150 million for gas and electricity.
		As Morris sees it, El Paso is "this big, 800-pound gorilla at the border and
can limit supplies as they wish. It's outrageous, and there wasn't a thing
anybody could do to stop them."
		El Paso officials, of course, put it differently.
		"All we did was good business, smart business, and people keep dishing dirt
about us, but we just don't see ourselves in it," company spokesman Mel Scott
said.
		"It's pretty obvious to the analysts and to us that California set up this
faulty deregulation system, and if (PG&E and Southern California utilities)
had been in their right minds and signed up for long-term natural gas
contracts back in 1996 and 1997, they wouldn't be in this trouble."
		Nobody official at El Paso is publicly gloating, but pleasure over the turn
of events is never far from the surface. Those who can speak more freely
don't mind putting the boot in a bit.
		"Everything bad that's happening right now (in the pipeline fight) could have
been prevented if PG&E just hadn't gotten rid of that contract back then, "
Wu said. "But I have yet to hear anyone in this state say that.
		"In fact, I have yet to hear anyone even at PG&E say that, and that's sad."
		What it all comes down to is this: El Paso figured out how to play
California's energy game better than California.
		"Those laws your boys passed there in California -- well, they just left you
wide open to anyone who wanted to make an enormous profit," said Tom "Smitty"
Smith, director of the Austin headquarters of Public Citizen, a consumer
rights group.
		"You can't fault the horse for eating hay when you lead it to the barn and
put the bale right in front of its face, now can you?"
California's 'energy island'
		There are just four points at the border where natural gas comes into
energy-starved California. The main one, owned by El Paso, is at the Colorado
River. The pipelines originate in the Southwest. They wind 1,000 miles
through several states to pop up right where Route 66 used to cut over the
Colorado River on its famous arched steel bridge. Today two of El Paso's
pipelines are all that use the old bridge.

Kenneth Shulklapper
Media Risk Management
Enron Media Services
(713) 853-7009 (phone)
(713) 646-8436 (fax)


John,

I made the changes you suggested.

The prior version contained a non-circumvention (you can't pursue the project
without me) versus the current exclusivity (you must work only with me),
which seems somewhat more restrictive since it would keep us from bringing in
additional participants.  I've changed language in the next paragraph to
avoid a contradiction.

 If we go with this approach then I suspect we will want to work on an LOI
which divides up responsibility going forward. Let me know what you think.

Kay


---------------------- Forwarded by Greg McClendon/HOU/ECT on 11/16/2000
07:30 AM ---------------------------

"Hilliard B. McClendon" <hbmcc@worldnet.att.net> on 11/15/2000 03:21:57 PM
Please respond to "Hilliard B. McClendon" <hbmcc@worldnet.att.net>
To: "Mary M. Spencer" <spencerm@airmail.net>, "Doak Meador"
<DMeador@bellhelicopter.textron.com>, "Gregorgy B. McClendon"
<greg.mcclendon@enron.com>, "Kerry L Humphries" <klhlch@flash.net>, "HOLLY
HOLSTEAD" <HOLLY.HOLSTEAD@CAT.com>, "Charlotte A. Holstead"
<cah99@bellsouth.net>, "Mary Lu Fouts" <efefouts@forsite.net>, "Tom & Rosalee
Fleming" <tkfrf@worldnet.att.net>, "Mike Fleming" <mflem@tgn.net>, "Amy
Fleming(on road)" <afleming@iii.com>, "Amy Fleming" <akflem@swbell.net>
cc:
Subject: Fw: OU & A&M Football Game

----- Original Message -----
From: Rene Brimmage <Rene.Brimmage@oag.state.tx.us>
To: <spencerm@airmail.net>; <BELTON84@AOL.COM>; <FBS3@AOL.COM>;
<jpfluger@compuvision.net>; KELLY ROBERTS <kelly_roberts_00@hotmail.com>;
BILL & MICHELLE PLITT <Plitt@lcc.net>; MaryVonne (2)
<thebrames@totalzone.com>; <hbmcc@worldnet.att.com>
Sent: Tuesday, November 14, 2000 8:28 AM
Subject: OU & A&M Football Game

** High Priority **

Subject: OU & A&M Football Game

College Station, TX (AP) - R.C. Slocum and the Texas A&M Aggies are
demanding a recount of the game in which Oklahoma won 35 to 31. "The end
zones were confusing," says Slocum. "I'm sure that some of the
touchdowns that went in Oklahoma's end zone were meant to go into ours.

We were scoring in those end zones also.  Oklahoma would never have scored
thirty-five points. There's no way we lost this one. A&M demands a recount."

Oklahoma officials are calling this "outrageous". "They agreed to the size,
shape and locations of the end zones prior to kick-off," replies OU coach
Bob Stoops.  "If they had a problem with them, they should have
said so before we started. You don't get to keep playing until you're happy
with the outcome.  Someone had to lose.  We've scored over
thirty-five points many times."

A&M has sent lawyers, farmers, and those guys in the funny boots as well  as
that damn dog down to Kyle Field, where the scoreboard will be tested.  "We
are confident that when the points are re-totaled, we will
be the winner of the game," says Slocum.

OU also points out that in many games prior to this one, the same end zones
were used. "They didn't have a problem with the end zones until they lost,"
says Stoops.

Outside of Kyle Field, A&M student protesters have gathered outside bearing
signs such as, "A&M wants a fair game! WHOOOOOOP!" Students' thoughts echoed
their signs. "All we want is a fair total of the points before we declare a
winner," says student Karen Hays, an aggie from Marfa.

"We need to proceed cautiously and not rush to judgment before we declare a
winner."

ABC, around 2:00pm central time, had mistakenly declared A&M the winner,
despite the slim 3 point lead the Aggies held at that point. At about 2:30
pm, with the game still to close to call, ABC had to back off its
prediction.

College football analyst Brent Musburger made the call. "We felt that with a
number of points still not added in by Jamaar Tombs and the Aggies, we were
certain A&M would carry this game. We may have been
premature in our prediction."


Bros.,
It is true that Clay is coming, but the NEW addition to  the list is ROB
ROSSELL.
BEEK


---------------------- Forwarded by Ami Chokshi/Corp/Enron on 01/19/2000
08:45 AM ---------------------------

troy_a_benoit@reliantenergy.com on 01/19/2000 08:24:42 AM
To: Ami Chokshi/Corp/Enron@ENRON
cc:

Subject: CUT 20/D INTO MIDCON

(See attached file: HPL-Jan.xls)

 - HPL-Jan.xls


The major groups are :

Manage Risk
Deal Clearing & Documentation
Logistics
Volume Management
Client Services or Settlements
Global Data Management

Within each of these major areas there groups of activities.  I have some
charts I can provide to you (they are slightly dated, but still better than
not).  To give you an idea,

Manage Risk is comprised of :  Value books, Identify Limit violations, Flash
P&L, Trade Capture, Generate Reports, etc.
Deal Clearing is comprised of: Prepare and distribute confirmations,
verify/audit deals, broker checkout, etc.
Logistics is comprised of:  gather operational data, communicate with
pipelines, plan product movement, nominate product movement, balance
positions, etc.
Volume Management : validate transport statements, allocate volumes,
reconcile imbalances, etc.
Client Services - Prepare and generate invoices, generate payment requests,
resolve disputes on billing, cash management, reconcile A/R and A/P, etc
Global Data Management - set up new counterparties, maintain cp data, capture
and validate settled prices, setup new pipelines and facilities, etc.

Generally, what is thought of as Financial Reporting at Enron is outside of
Back Office Operations as is any trading or origination activity.

Sally/Bob - feel free to make any corrections/additions you see fit.

Lisa Petruszka@ENRON
02/01/2001 10:47 AM
To: Sally Beck/HOU/ECT@ECT, Mary Solmonson/HOU/ECT@ECT, Bob M
Hall/NA/Enron@Enron
cc:
Subject: Back Office Process Definitions

Hello team  -

How does Enron define their back office processes?  It seems that every
organization has their own definition of "back office" and the processes that
fall within it.  So, I was curious to know if we had a consistent breakdown
for Enron.  What I'm wondering is if there is a "common language" across
Enron.

Let me explain where I'm going with this question - I know that there will be
participants from many parts of Enron at the session so we might have a risk
of different definitions or assumptions being used during the conversations.
If the groups define processes differently, even slightly,  there could be
some confusion if we start a conversation at the session around the kinds of
services to be offered.

To give you an idea of what I've seen, here are some different breakdowns or
"models" used:

In Derivatives Strategy magazine's annual technology assessment, the
following breakdown is used to evaluate software products:
Deal Capture
Special Deal Entry
EOD Mark to Market
P/L Calculations
Settlement
Confirmations
Payments
Payment Netting

The Bloomberg model, as depicted in Wall Street & Technology, January 2001,
has the following high-level components:
Trade and Order Management
Electronic Trade Confirmation
Trade Allocation
Settlement Instructions
Electronic Settlement Links

Let me know your thoughts on this.  If you think there is a significant risk
of different groups using different definitions for Enron we might be able to
build in an exercise early on to get us over the hurdle.

Lisa P
5-6352


Guys, what is your plan?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 10/16/2000
06:35 PM ---------------------------

Brian Redmond
10/13/2000 12:42 PM
To: David W Delainey/HOU/ECT@ECT
cc: Ron Tapscott/HOU/ECT@ECT, Jean Mrha/NA/Enron@Enron
Subject: Re: Un-allocated Turbines

Dave,

We will either:

1. Find an acceptable structure for the LIPA PPA (unit contingent - no
replacement energy risk) and complete the transaction.   LIPA is aware of our
issues and is considering how they want to proceed.
2. Don't come to terms on the PPA and sell the barges to LIPA - probably the
best case scenario.
3. Don't come to terms on the PPA and sell the barges to ConEd, Morgan
Stanley, AES or NRG (we are now in the process of agreeing CAs with these
parties with respect to an infor memo on the barges/deal), or
4. Let BargeCo keep the barges (technically they still own them now).

The time frame for resolving this is Q4.

Regards,
Brian

David W Delainey
10/11/2000 09:30 AM
To: Brian Redmond/HOU/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Janet R
Dietrich/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT
cc:
Subject: Un-allocated Turbines

Guys, we have the following un-allocated turbines (approximately $100M in
nominal value):
  a) 2 power barges - Brian - $13M
  b) 2 ABB 11N1 - Rob- $35M
  c) 1 501D5A - Janet/Chris - $25M
  d) 1 7EA - Janet/Chris- $20M

All other turbines appear to be allocated to high probability projects.
Could you please provide me your plan with these units.  I would like to
flatten out our book (ie) ensure there are good homes for or divest of all
our existing turbines before we look at purchasing additional units for 2002.

Regards
Delainey


A fellow from Western Publishing Company called Anthony Camppos in Global
Contracts and said something to the effect that that wanted to terminate the
master with us and trade(s) thereunder.  He referenced Deal No. EK9839.1.
I'm not sure by this note if the company is being liquidated or just this
trades, but you might want to give them a call.  Jim McClymont at (308)
532-7118


Start Date: 4/11/01; HourAhead hour: 16;  No ancillary schedules awarded.
Variances detected.
Variances detected in Load schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041116.txt

---- Load Schedule ----
$$$ Variance found in table tblLoads.
     Details: (Hour: 16 / Preferred:   2.27 / Final:   2.26)
  TRANS_TYPE: FINAL
  LOAD_ID: PGE4
  MKT_TYPE: 2
  TRANS_DATE: 4/11/01
  SC_ID: EPMI


----- Forwarded by James D Steffes/NA/Enron on 01/12/2001 07:59 AM -----

	Alan Comnes@ECT
	01/11/2001 10:13 PM

		 To: Tim Belden/HOU/ECT@ECT, James D Steffes/NA/Enron@Enron, Steve C
Hall/PDX/ECT@ECT, Mary Hain/HOU/ECT@ECT, Greg Wolfe/HOU/ECT@ECT, Susan J
Mara/NA/Enron@ENRON, Christian Yoder/HOU/ECT@ECT, Bill Williams
III/PDX/ECT@ECT
		 cc:
		 Subject: Re: CAISO NOTIFICATION: DOE Certification for Operating Date
January  12, 2001

And here is the Richardson order.


Geof, here's the volume file.


Kim,

Phillip Allen will not be in attendance.  He will be out of town that day.

-Ina Rangel

From:	Kimberly Hillis/ENRON@enronXgate on 03/26/2001 05:05 PM
To:	Kimberly Brown/HOU/ECT@ECT, Ina Rangel/HOU/ECT@ECT, Tamara Jae Black/HOU/ECT@ECT, Airam Arteaga/HOU/ECT@ECT, Laura Vuittonet/Corp/Enron@Enron, Daniel Quezada/Corp/Enron@Enron
cc:	Lydia Cannon/ENRON@enronXgate
Subject:	Meeting on Thursday, March 29 at 3:00 pm

Please mark on each Power and Gas Desk heads calendar a meeting from 3 - 4 on Thursday regarding "Other People Trading on EOL".

This meeting will have John Lavorato, Louise Kitchen and Andy Zipper attending as well as the desk heads.

The meeting will be held in EB3321.

Please let me know if you have any questions.

Thanks


Here are the things that we need to work on while you are here:

1)   Powder River external pool 12/99, 01/00, 02/00, 03/00

2)   FUGG Imbalance 12/99 - 07/01

 3)   PSCO  05/00 imbalance swap

4)     Please take a look at deal #149162 for 10/00.  There is an
              interconnect for 52,221 on the sale for FUGG, but there is
              nothing on the supply for FUGG.  Should this really be an
              interconnect deal?

5)    Same thing on deal #561930 for 09/00.  There is an interconnect
              for 69,461 on the sale for FUGG, but there is no supply, and the
              deal is set up at the imbalance point.  Should this really be an
              interconnect deal?

 6)    Crestone draft for 04/01 for contract #96027895, deal #414117.
The rate has been changed from .054032 to .39078.  Is this correct?
The draft is for over ($59,000).

7)    Crestone draft for 10/00 for contract #96041735, deal #423796
for 78,590 dth @ $.65922 for $51,808.10.


The ICAP Working Group of the New York State Reliability Council
("NYSRC") is posting this message to inform all interested parties of
the ability to participate, on a "listen-only" basis, in the NYSRC ICAP
WG Conference Call No. 8 scheduled for April 30, 2001, from 9:30 am till
11:30. Attached in Word format is the Agenda for this meeting.  The
NYSRC has opened its Committee, Subcommittee, and Working Group meetings
in accordance with NYSRC Policy No. 2-1, which is available of the NYSRC
web site at "www.nysrc.org", on the "Policies" web page.

Those wishing to participate on a "listen-only" basis can call
734-414-0268 and enter Participant Code 765893. Participants will be
required to place their telephones on mute so as not to prevent other
parties from participating.  Those who plan on listening to the meeting
shall send me an email at "mhogan@cenhud.com" with the names of the
individuals & organizations participating.

Attendees who are not NYSRC ICAP Working Group Members or Alternate
Members will be given an opportunity to comment at the end of each
meeting, or earlier at the Chairman's invitation.

Should you have any questions, please contact me by email at
mhogan@cenhud.com or by phone at (845) 486-5213.

Michael P. Hogan
Secretary, NYSRC ICAP Working Group

(See attached file: NYSRC ICAP WG Agenda CC8.doc)

 - NYSRC ICAP WG Agenda CC8.doc


> > In the Birmingham Sunday Mercury (7th Jan 2001):
> > WORKER DEAD AT DESK FOR 5 DAYS
> >
> > Bosses of a publishing firm are trying to work out why
> > no one noticed that one of their employees had been
> > sitting dead at his desk for FIVE DAYS before anyone
> > asked if he was feeling okay.  George Turklebaum, 51,
> > who had been employed as a proof-reader at a New York
> > firm for 30 years, had a heart attack in the open-plan
> > office he shared with 23 other workers.  He quietly
> > passed away on Monday, but nobody noticed until
> > Saturday morning when an office cleaner asked why he
> > was still working during the weekend.
> >
> >
> >
> > His boss Elliot Wachiaski said: "George was always the
> > first guy in each morning and the last to leave at
> > night, so no one found it unusual that he was
> > in the same position all that time and didn't say
> > anything.  "He was always absorbed in his work and
> > kept much to himself."  A post mortem
> > examination revealed that he had been dead for five
> > days after suffering a coronary.   Ironically, George
> > was proofreading manuscripts of medical
> > textbooks when he died.  You may want to give your
> > co-workers a nudge occasionally.
> >
> > And the moral of the story: Don't work too hard.
> >
> > Nobody notices anyway.
>
>


i am sure that girl courtney walker would like to share some special memories
also


Peter - please talk to Jeff about this.  Should we support this proposal?
Should I plan to attend the meeting 1/10 and 11?  Also, please contact Frank
Lindh and ask to get on the dist list for this if you are not already.
---------------------- Forwarded by Kathleen E Magruder/HOU/EES on 01/02/2001
10:07 AM ---------------------------

"Lindh, Frank (Law)" <FRL3@pge.com> on 12/21/2000 08:50:07 PM
To: "'aamirali@caiso.com'" <aamirali@caiso.com>,
"'askaff@energy-law-group.com'" <askaff@energy-law-group.com>,
"'bbrunel@smud.org'" <bbrunel@smud.org>, "'bcope@ci.redding.ca.us'"
<bcope@ci.redding.ca.us>, "'bcragg@gmssr.com'" <bcragg@gmssr.com>,
"'bhabersack@gasbiz.com'" <bhabersack@gasbiz.com>, "'bmantz@sempra-slns.com'"
<bmantz@sempra-slns.com>, "'bobfraser@aec.ca'" <bobfraser@aec.ca>,
"'brad.king@usa.conoco.com'" <brad.king@usa.conoco.com>,
"'bradylaw@pacbell.net'" <bradylaw@pacbell.net>,
"'bruce.a.connell@usa.conoco.com'" <bruce.a.connell@usa.conoco.com>,
"'burkee@cts.com'" <burkee@cts.com>, "'bwood@energy.state.ca.us'"
<bwood@energy.state.ca.us>, "'cabaker@duke-energy.com'"
<cabaker@duke-energy.com>, "'cgoodman@energymarketers.com'"
<cgoodman@energymarketers.com>, "'charles.jacobini@acnenergy.com'"
<charles.jacobini@acnenergy.com>, "'chawes@txuenergy.com'"
<chawes@txuenergy.com>, "'cprice@igservice.com'" <cprice@igservice.com>,
"'craigc@calpine.com'" <craigc@calpine.com>, "'csullivan@coral-energy.com'"
<csullivan@coral-energy.com>, "'dave.sloan@gt.pge.com'"
<dave.sloan@gt.pge.com>, "'davef@abag.ca.gov'" <davef@abag.ca.gov>,
"'ddame@ncpa.com'" <ddame@ncpa.com>, "Thomas, Dan (CGT Dir)" <DFT1@pge.com>,
"'dmkellerton@ibm.net'" <dmkellerton@ibm.net>, "'dwillis@sdge.com'"
<dwillis@sdge.com>, "'dwswapp@duke-energy.com'" <dwswapp@duke-energy.com>,
"'ed@clfp.com'" <ed@clfp.com>, "'edwardoneill@dwt.com'"
<edwardoneill@dwt.com>, "'egw@aelaw.com'" <egw@aelaw.com>, "'eke@aelaw.com'"
<eke@aelaw.com>, "'epoole@adplaw.com'" <epoole@adplaw.com>,
"'eric.eisenman@neg.pge.com'" <eric.eisenman@neg.pge.com>,
"'fillmotw@sce.com'" <fillmotw@sce.com>, "'frazier@bull.som.yale.edu'"
<frazier@bull.som.yale.edu>, "Lindh, Frank (Law)" <FRL3@pge.com>,
"'girish_balachandran@city.palo-alto.ca.us'"
<girish_balachandran@city.palo-alto.ca.us>, "Bellenger, Geoffrey"
<GJB2@pge.com>, "'gnadeau@suncor.com'" <gnadeau@suncor.com>,
"'grant_kolling@city.palo-alto.ca.us'" <grant_kolling@city.palo-alto.ca.us>,
"'gregory_hood@oxy.com'" <gregory_hood@oxy.com>, "'gregs@mid.org'"
<gregs@mid.org>, "'gsullivan@Sempra.com'" <gsullivan@sempra.com>,
"'gworster@txuenergy.com'" <gworster@txuenergy.com>, "'healyb@epenergy.com'"
<healyb@epenergy.com>, "'jdasovic@enron.com'" <jdasovic@enron.com>,
"'jfawcet@enron.com'" <jfawcet@enron.com>, "'jfossum@westernhubs.com'"
<jfossum@westernhubs.com>, "'jgopal@energy.state.ca.us'"
<jgopal@energy.state.ca.us>, "'jkarp@whitecase.com'" <jkarp@whitecase.com>,
"'jleslie@luce.com'" <jleslie@luce.com>, "'jmartini@cipa.org'"
<jmartini@cipa.org>, "'jnm@cpuc.ca.gov'" <jnm@cpuc.ca.gov>,
"'joe.paul@dynegy.com'" <joe.paul@dynegy.com>,
"'john_ulrich@city.palo-alto.ca.us'" <john_ulrich@city.palo-alto.ca.us>,
"'johnj@bcjlaw.com'" <johnj@bcjlaw.com>, "'jsuwara@sempra.com'"
<jsuwara@sempra.com>, "'judypau@dwt.com'" <judypau@dwt.com>,
"'justin_sutton@powerspring.com'" <justin_sutton@powerspring.com>,
"'jweil@aglet.org'" <jweil@aglet.org>, "'karen@klindh.com'"
<karen@klindh.com>, "'karl@ncpa.com'" <karl@ncpa.com>,
"'katie_elder@rmiinc.com'" <katie_elder@rmiinc.com>,
"'keith.brown@swgas.com'" <keith.brown@swgas.com>, "'khatz@titanenergy.com'"
<khatz@titanenergy.com>, "'khensman@aeraenergy.com'"
<khensman@aeraenergy.com>, "'kl@mrwassoc.com'" <kl@mrwassoc.com>,
"'kmagruder@newpower.com'" <kmagruder@newpower.com>, "'kmccrea@sablaw.com'"
<kmccrea@sablaw.com>, "'kpurbhoo@enron.com'" <kpurbhoo@enron.com>,
"'lbdr@powercomenergy.com'" <lbdr@powercomenergy.com>,
"'lindseyhowdowning@dwt.com'" <lindseyhowdowning@dwt.com>,
"'llorenz@pacent.com'" <llorenz@pacent.com>, "'marcel@turn.org'"
<marcel@turn.org>, "'mbaldwin@igservice.com'" <mbaldwin@igservice.com>,
"'mcconnk@epenergy.com'" <mcconnk@epenergy.com>, "'mcollette@econone.com'"
<mcollette@econone.com>, "'mdjoseph@adamsbroadwell.com'"
<mdjoseph@adamsbroadwell.com>, "'mflorio@turn.org'" <mflorio@turn.org>,
"'michael.alexander@sce.com'" <michael.alexander@sce.com>,
"'mike.huk@gov.ab.ca'" <mike.huk@gov.ab.ca>, "'mmbr@dynegy.com'"
<mmbr@dynegy.com>, "'mmce@dynegy.com'" <mmce@dynegy.com>,
"'mnyberg@energy.state.ca.us'" <mnyberg@energy.state.ca.us>,
"'mtbrommer@tid.org'" <mtbrommer@tid.org>, "'napedersen@jonesday.com'"
<napedersen@jonesday.com>, "'nmcvay@socalgas.com'" <nmcvay@socalgas.com>,
"'pat_mulhern@oxy.com'" <pat_mulhern@oxy.com>, "'paulamirault@aec.ca'"
<paulamirault@aec.ca>, "'pcervin@br-inc.com'" <pcervin@br-inc.com>,
"'pete.frost@usa.conoco.com'" <pete.frost@usa.conoco.com>,
"'peter.saunders@paramountres.com'" <peter.saunders@paramountres.com>,
"'phil@royl.com'" <phil@royl.com>, "'pinney@capp.ca'" <pinney@capp.ca>,
"'pkeeler@br-inc.com'" <pkeeler@br-inc.com>, "'plg@cpuc.ca.gov'"
<plg@cpuc.ca.gov>, "'prescorw@bp.com'" <prescorw@bp.com>,
"'randy_richards@powerspring.com'" <randy_richards@powerspring.com>,
"'raveen_maan@city.palo-alto.ca.us'" <raveen_maan@city.palo-alto.ca.us>,
"'rbetonte@socalgas.com'" <rbetonte@socalgas.com>, "'rcampbell@wwdb.org'"
<rcampbell@wwdb.org>, "'rcrowley@coral-energy.com'"
<rcrowley@coral-energy.com>, "Williams, Ray" <RDW0@pge.com>,
"'redavis@sempra.com'" <redavis@sempra.com>, "'rishikawa@socalgas.com'"
<rishikawa@socalgas.com>, "'rmp@cpuc.ca.gov'" <rmp@cpuc.ca.gov>,
"'rnagatani@venocoinc.com'" <rnagatani@venocoinc.com>,
"'rochmanm@cubjpa.org'" <rochmanm@cubjpa.org>, "'rochmanm@spurr.org'"
<rochmanm@spurr.org>, "'rocky_rasley@oxy.com'" <rocky_rasley@oxy.com>,
"'ron_oechsler@rmiinc.com'" <ron_oechsler@rmiinc.com>, "'rpurves@sdge.com'"
<rpurves@sdge.com>, "'rroth@sempra-slns.com'" <rroth@sempra-slns.com>,
"'salleyoo@dwt.com'" <salleyoo@dwt.com>, "'sandra_mcdonough@pcp.ca'"
<sandra_mcdonough@pcp.ca>, "'scohn@smud.org'" <scohn@smud.org>,
"'slins@ci.glendale.ca.us'" <slins@ci.glendale.ca.us>, "'sross@state.nm.us'"
<sross@state.nm.us>, "'sslavigne@duke-energy.com'"
<sslavigne@duke-energy.com>, "'steve.huhman@southernenergy.com'"
<steve.huhman@southernenergy.com>, "'steve_ponder@fpl.com'"
<steve_ponder@fpl.com>, "'susan.scott@enron.com'" <susan.scott@enron.com>,
"'swatson@socalgas.com'" <swatson@socalgas.com>, "'tlewis@titanenergy.com'"
<tlewis@titanenergy.com>, "'tmiller@ucmohio.com'" <tmiller@ucmohio.com>,
"'tod_bradley@powerspring.com'" <tod_bradley@powerspring.com>,
"'tomb@crossborderenergy.com'" <tomb@crossborderenergy.com>,
"'tpeterso@energy.state.ca.us'" <tpeterso@energy.state.ca.us>,
"'tsurak@socalgas.com'" <tsurak@socalgas.com>, "'vhconsult@earthlink.net'"
<vhconsult@earthlink.net>, "'worthycg@bp.com'" <worthycg@bp.com>,
"'zaiontj@bp.com'" <zaiontj@bp.com>
cc: "Katz, Michael" <MAK9@pge.com>, "Williams, Ray" <RDW0@pge.com>,
"Campbell, Benjamin" <BCC3@pge.com>, "Bellenger, Geoffrey" <GJB2@pge.com>,
"Buchner, Les" <LDB4@pge.com>, "Miller, Jerry" <GRM8@pge.com>, "Thomas, Dan
(CGT Dir)" <DFT1@pge.com>, "Johnson, Kirk" <MKJ2@pge.com>, "Risser, Roland"
<RJRb@pge.com>, "Berkovitz, Trista" <TxB6@pge.com>, "Malekos, Shelly"
<SSM3@pge.com>, "Halverson, Shaun E" <SEHc@pge.com>, "McManus, Chris"
<MCM4@pge.com>, "Bowen, Bruce" <BRB3@pge.com>
Subject: PG&E Gas Accord II Settlement Proposal

Confidential Settlement Document
Per CPUC Rule 51

Gas Accord II Settlement Participants:

Attached is PG&E's Gas Accord II (GA II) Settlement Proposal.  We believe it
addresses many of the issues and concerns you have raised in the workshops.

As an overview, this proposal:

* Maintains the basic Gas Accord structure in place today for the
period 2003 to 2007.
*
* Offers end user transportation rates for 2003 lower for most
customers than rates in effect today.
*
* Provides for vintaged Redwood path rates for core customers.
*
* Offers a 7.5 cent/dth rate to large customers while minimizing rate
changes to other customers, minimizing the incentive for these customers to
seek to bypass local transmission charges and other CPUC-approved charges.
*
* Adopts guidelines to improve reliability and help moderate prices in
gas commodity markets, and identifies the capital projects needed to meet
these guidelines over the course of the GA II period (2003-2007).
*
* Provides a high degree of rate stability, with a 3.5% escalator to
capture both inflation and the cost of needed capital projects.  The
guaranteed rates will be adjustable only for significant changes in the cost
of capital or increased costs due to governmental requirements or
catastrophic events.
*
* Preserves a rate differential between the Redwood and Baja paths,
although somewhat less than the current differential.
*
* Proposes a two-stage open season for firm transportation services
beginning in 2003, with end users receiving a first option on available
capacity.
*
* Maintains the core aggregation program with some adjustments.

PG&E also anticipates that the Core Procurement Incentive Mechanism (CPIM)
will be similar to today's mechanism, but will reflect the somewhat larger
capacity holdings needed to meet anticipated increases in core demand and to
meet a 1-day in 10-year cold weather event.

This also will serve as a reminder that an all-Party meeting is scheduled at
PG&E's headquarters in San Francisco on January 10 and 11, to discuss this
proposal and to respond to your questions.  We look forward to answering
your questions and receiving your feedback.

The attached documents include the GA II Settlement proposal, an Attachment
(a copy of PG&E's proposed Gas Rule 27), and a set of supporting workpapers.

Finally, please note that the Settlement document and the Attachment are in
"Word 2000" format.  We would be glad to provide the same documents in an
earlier version of Word, upon request by individual Parties.

We look forward to seeing you on January 10-11.  In the meantime, we extend
our best wishes for a safe and happy holiday season.

Frank Lindh     Ray Williams
(415) 973-2776    (415) 973-3634

 <<PG&E Gas Accord II Settlement Proposal 12-20-00.doc>>  <<Proposed Gas
Rule 27.doc>>  <<COS & Rates Workpapers for GA II 12-20-2000 Proposal.xls>>

 - PG&E Gas Accord II Settlement Proposal 12-20-00.doc
 - Proposed Gas Rule 27.doc
 - COS & Rates Workpapers for GA II 12-20-2000 Proposal.xls


Justin and Edmund:

I understand that the two of you are the key legal contacts in London on
EnronOnline, and I thought that I should contact you regarding
Clickpaper.com, Enron Net Works' new e-commerce initiative.

Enron is planning to launch next week (with a formal launch in connection
with Enron Corp.'s analyst meeting on July 25) of a website for Enron's
trading of pulp and paper products.  The business model is similar to that of
EnronOnline, but since this website will have a more targeted audience, we
can expect a broader product offering and greater volumes than is currently
traded on EnronOnline.  It is anticipated that the site will ultimately have
global counterparties and will trade physical products at several "hubs"
around the world, although operations will initially be more or less limited
to the U.S. and Canada.

I understand that the London office has done substantially all of the legal
work associated with enabling global counterparties to trade on EnronOnline
(such as adopting appropriate password applications and electronic trading
agreements and addressing legal issues associated with electronic trading of
financial and physical products).  While much of that work will be
transferable to Clickpaper, there may be some unique issues.

I'm not sure if anyone has discussed how to handle the legal work for
Clickpaper as it expands into European markets, but I thought that I should
raise the issue.  I don't expect a huge volume of work immediately -- it will
probably trickle in as the traders expand their operations -- but at some
point it could become a substantial effort.

I would appreciate any thoughts that you have.

Travis McCullough
Enron North America Corp.
1400 Smith Street EB 3817
Houston Texas 77002
Phone:  (713) 853-1575
Fax: (713) 646-3490


Jeff-
I am always interested! The angle we are looking for is the natural gas
marketing side of things. Are YOU still interested? And I am getting you
because you are afraid to expose anyone else from your company to the
wildness and unpredictability of the AB 1890 Group? :)

Delaney
-----Original Message-----
From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com]
Sent: Monday, October 02, 2000 3:02 PM
To: dhunter@smithandkempton.com
Subject: Re: AB 1890 Retreat

Well, if you're going to want someone from Enron, it's going to have to be
me.  Let me know if you're still interested.

"Delaney Hunter"
<dhunter@smithandke        To:     "Jeff Dasovich
(E-mail)" <jdasovic@enron.com>
mpton.com>                 cc:
Subject:     AB 1890 Retreat
10/02/2000 04:51 PM
Please respond to
dhunter

Jeff-
I am putting together a panel at the AB 1890 Retreat on natural gas issues
and would like to include an Enron representative. We are trying to get
folks who are dealing with the nuts and bolts issues, someone on the
ground -- you get the idea - someone from Houston. Below are the details on
the panel:

Tuesday November 14th -- 1:30 p.m. - 3:00 p.m.
Natural Gas Issues
Issue: The future cost and availability of natural gas will become a
dominant factor in the generation of electricity in California as more
generation is built in future years. We have seen the natural gas price
increase over 100% in the last fifteen months. Why has the price increased
so dramatically? While the price increases can be expected to spur
increased
exploration and drilling, and this supply. Where can California expect to
procure its natural gas supply and at what price over the next five to ten
years? There are now some significant natural gas storage facilities coming
on line - will they help hedge future price volatility? Are independent,
unregulated generators concerned about our natural gas future? Who are the
largest competitors to California for natural gas supply and what will be
the role of new technology in increasing capture of new supply?

Moderator: Keith McCrea

Suggested Panelists:
____________, California Energy Commission (Fuels planner)
____________, El Paso Energy Corporation (Pipeline representative)
____________, Fuels Procurement, Calpine
____________, Enron
____________, Gas Storage Representative
Ed Yates, CA League of Food Processors (customer perspective)

Can you get back to me and let me know if and who could participate from
Enron? Thanks for your help.

Delaney

P.S. You better be planning to attend this year -- at least the day
sessions! :-)


Dear Mr. Kean:

At the request of Louis Carranza a copy of the CERA/Arthur Andersen report,
Electric Power Trends 2001, has been sent to your office via Federal
Express.? The attached PDF file contains the 24 page executive summary to
that report.

Regards,
Lauren Laidlaw
CERA Associate
llaidlaw@cera.com
617.441.2604

 <<ept2001excerpt.pdf>>

 - ept2001excerpt.pdf


Toni:

We talked to Rabi. He's sitting on the fence for some good reasons, and he
has to weigh what is fairly comfy job situation for one that starts out at a
lower level but has more potential.   WRT the GREEN, Vince verbally offered
salary of $105k plus a guarantee that his bonus at year end would be a
minimum of $15k cash.  That's in addition to the $15k sign on bonus.  Vince
said that we would not bother working up a revised offer letter unless and
until Rabi came back with a verbal ok.  He will ponder the offer; probably
for a few more days and get back with us.  He may well call you to discuss
the exact details of the benefits.  ESOP, 401(k) contributions, etc.

Regards,
Grant.


Chris and Tracy:  I will be in the Sao Paulo office most of this week.  You
can reach me there (check with my assistant Kaye Ellis) or you can call Marie
(X33907) and she will make certain that a lawyer is available to help you.
Thanks.  Sara

Marie:  Please assist Chris and Tracy as required.  Thanks.  Sara

	From:  Chris H Foster                           11/24/99 02:06 PM

To: Tracy Ngo/HOU/ECT@ECT
cc: Sara Shackleton/HOU/ECT@ECT
Subject: Credit Request

Tracy

Could you please prepare a credit review for Mountainview Power Company LLC?
They are a subsidiary of Thermo Ecotek.  Thermo Ecotek is 50% owned by Thermo
Electron.  Thermo Ecotek is publicly traded.  I hope you can find enough data
to do a review.  Please forward credit erms to Sara Shackleton for ISDA
preparation.  This is for a different power plant than the deal you looked at
for me with Thermo Ecotek.a second deal.  Also, for that deal, it looks like
they want to use Thermo Ecotek, and not Thermo Electron, as the
counterparty.  Unlike the Mountainview deal, there will be no LP subsidiary
for this deal. Is this OK?  Can Thermo Ecotek support both?

I will call on Monday to discuss.

Chris


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