Fortune Global 500 List: Enron No. 16
Fortune, July 23, 2001
THE CARNAGE GETS WORSE Profits at bellwether companies slid in the second
quarter
BusinessWeek, 07/30/01

Power-Market Bear Mauls Plans For New Generators In West
Dow Jones Energy Service, 07/26/01
UK: Carrots and sticks to turn big business greener.
Reuters English News Service, 07/26/01

JAPAN: UPDATE 1-Kobe Steel to raise 165 bln yen for power business.
Reuters English News Service, 07/26/01

ENRON CANCELS MIAMI-DADE PLAN POWER PLANT BUILDER FAVORS DEERFIELD SITE
South Florida Sun-Sentinel, 07/26/01

Rove's First Step Toward Shedding Stock Took 5 Months
The Washington Post, 07/26/01

Insider Selling by Enron Execs Speaks Louder Than Their Words
TheStreet.com, 07/20/01

Enron's Own Dot-Com Bubble Finally Popped
TheStreet.com, 07/13/01

Fortune Global 500 List: Enron No. 16
Fortune, July 23, 2001
http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=203281

News: Analysis & Commentary: FLASH PROFITS
THE CARNAGE GETS WORSE Profits at bellwether companies slid in the second
quarter
By Pallavi Gogoi in Chicago, with bureau reports

07/30/2001
BusinessWeek
34
(Copyright 2001 McGraw-Hill, Inc.)

Welcome to the earnings recession. Economists may debate the health of the
economy, but there's little doubt where Corporate America stands: Profits
have shrunk for three consecutive quarters now. Higher energy costs, the
gut-wrenching hangover from tech-spending excesses, and the strong dollar
have all contributed to a slowing economy--and continue to take a heavy toll
on earnings.
That's despite seemingly strong revenue gains. Although overall sales rose 8%
in the second quarter from the year before, BusinessWeek's flash profit
survey of 90 bellwether companies shows that net income shriveled 34%. But on
a closer look, sales weren't so hot either. Much of the jump stems from Enron
Corp.'s 196% revenue gain. Barring that, overall sales were flat. DEPRESSED.
Nor is the carnage over yet. First Call/Thomson Financial says earnings will
drop 8% in the third quarter. Worse, recent earnings surprises have the
Boston firm backing away from a projected 3.3% profit recovery in the fourth
quarter. So far, 811 companies have warned of lower second-quarter earnings,
up from 263 a year ago. ``You don't switch from record earnings warnings to
normal overnight,'' says Charles L. Hill, First Call's director of research.
Few sectors escaped the bloodbath. Tech companies continued to lead the
downturn: Intel Corp.'s net dropped 94% on depressed demand for chips, while
Motorola Inc.'s $759 million quarterly loss was one of the worst among the 90
companies. Carmakers and airlines didn't fare much better. General Motors
Corp.'s profits plunged 73% on weaker sales and losses from overseas units.
``The strong dollar is becoming an increased problem in the marketplace,''
says GM CFO John Devine. Among carriers, UAL Corp. was one of the worst
performers, posting a $292 million loss. Corporate travel cuts will force
losses at most major carriers.
The financial services sector was a mixed bag. Citigroup's net rose 9%, to
$3.7 billion, on higher global business growth. But venture capital
investments in technology dealt Wells Fargo & Co. an $87 million loss.
There were few surprises among the quarter's star performers. Jack Welch will
retire with his legacy as a master of strong and consistent earnings intact:
General Electric Co. earnings rose 15%, to $3.9 billion. Pharmaceuticals were
also healthy. Pfizer Inc.'s net surged 56% to $1.8 billion, and Johnson &
Johnson's climbed 9%, to $1.5 billion, on increased drug sales. Good thing.
If the economy stays sick, we're all going to need plenty of painkillers.

Table: BusinessWeek's Flash Profits Survey (This table is not available
electronically. Please see the July 30, 2001 issue.)
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Power-Market Bear Mauls Plans For New Generators In West
By Mark Golden
Of DOW JONES NEWSWIRES

07/26/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- The crumbling price of electricity in the western
U.S., attributed by many to federal price controls, has forced power plant
developers to cancel projects, calling into question whether there will be
enough electricity to meet demand in the Northwest this winter.
The cancellations of peaking plants and temporary, oil-fired generators -
high-cost units that provide power needed only when demand is highest - have
cut projected generating capacity in the Northwest by up to 1,000 megawatts,
about 3% of the combined peak demand of Washington, Oregon, Idaho and western
Montana.
"The price caps have added uncertainty," said Scott Simms, spokesman for
Enron Corp. (ENE) unit Portland General Electric Co. "If we look forward to
this winter and you see a diminished supply scenario, you can see why we have
concerns about regional reliability. That could put us in a position of
having rotating outages in the region."
About two weeks after the Federal Energy Regulatory Commission imposed limits
on western power prices on June 19, Portland General halted installation of a
new 45-megawatt gas-fired peaking turbine at its existing Boardman power
plant.
The utility was developing the extra generation both to meet its customers'
needs and to sell some output to other Northwest utilities left short of
hydroelectric supplies due to this year's drought. A turbine that size could
power about 45,000 homes.
"You can directly attribute that to FERC price controls," Simms said.
After the FERC order, at least two utilities in Washington State ended
negotiations with NRG Energy (NRG) for supplies from new plants that NRG was
ready to build in time for winter. Both utilities - Tacoma Power and
Snohomish County Public Utility District - experienced significant supply
shortages in the past 12 months, paid very high prices in the spot market and
had to raise customer electric rates by as much as 50%.
But both utilities told NRG, and later Dow Jones Newswires, that they had no
reason to sign long-term contracts to guarantee new supplies, because the
FERC had practically eliminated the financial risk of relying on the spot
market. NRG, as a result, scuttled plans to build peaking plants in
Washington that could have added 300 megawatts.
FERC's price controls, as well as supply-demand fundamentals, have
dramatically changed the economics of selling power into the West's open
market in the past few months.
The current western U.S. electricity price cap of $98 a megawatt-hour covers
the costs of generating power from easy-to-install but inefficient peaking
turbines, but not the capital costs of buying and installing new peakers. In
addition, the current price cap may soon be recalculated to a much lower
level. The cap is based largely on natural gas prices, which have been cut in
half since the cap was first formulated in June.

Not Everyone Blames FERC

The average monthly price for on-peak hours in the Northwest from August
through March is $60 a megawatt-hour - a fraction of what it was three months
ago. Many in the western electricity industry think that's because FERC's
price controls have kept prices artificially low. A smaller group thinks the
market is appropriately signaling that not all the planned gas-fired plants
are needed, because some power plants are already under construction and
consumers are conserving electricity.
Jim Kemp, a senior executive for the Canadian utility TransAlta's (TA.TO)
merchant power group, TransAlta (TA.TO), for example, doesn't attribute the
cancellation of projects to price controls.
"I see it as due to demand-side control and new units," Kemp said. "The
market is sending out a signal that we have enough. Maybe this winter we will
find that we don't have enough, but that's not the signal the market is
sending now."
The spot market for power has been far below the federal price cap for two
months. Mild weather, a slowing economy and conservation efforts throughout
the West have made power from expensive peaking plants unnecessary except for
a few hours so far this summer.
"Prices started to come down before the FERC mitigation plan started," said
Tacoma Power supply analyst David Lucio, who was negotiating with NRG. "The
need to try to execute a contract wasn't as great with the prices falling."
Lucio said there should be enough capacity to get the Northwest through the
winter, barring abnormalities like a long, extended freeze.
Construction of dozens of peaking plants in the West is going forward in
cases where developers sold supply contracts in advance. TransAlta is
continuing construction of a 154-megawatt peaking plant in Washington,
because much of the plant's capacity was sold months ago.
"The number of announced projects is far and away more than what is needed
within the time frame we're talking about," said Dick Watson, a director with
the Northwest Power Planning Council.
Still, several western utilities have asked the FERC to raise the price cap.
Puget Sound Energy (PSD) told the FERC the cap "undercuts the Commission's
efforts to ensure adequate supplies of electricity."
As previously reported, some small oil-fired generators, which are even more
expensive to operate than the permanent, gas-fired peaking plants, have even
been taken off line permanently after being installed over the past six
months. And orders for new generators have been canceled.
-By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.com

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

UK: Carrots and sticks to turn big business greener.
By Andrew Callus

07/26/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 26 (Reuters) - Stricter environmental laws, flagged by last
week's climate change conference, have companies scrambling to link
investment strategies to making money from helping save the planet.
Governments from 186 countries returned home from a climate change meeting in
Bonn with the task of making the 1997 Kyoto protocol on combatting global
warming into law.
After that, they must find ways to meet their respective carbon emissions
limits by 2012, or face penalties.
The deal reached in Bonn will allow the trading of greenhouse gas emissions
whereby a company polluting below its limit can sell credits to a company
polluting more than is allowed. Advocates of the system believe this will
create incentives to cut emissions and will help reduce costs of lowering
emissions.
The allowances of greenhouses gases a company can emit will be denominated in
metric tonnes of carbon dioxide equivalent.
Energy giant Royal Dutch/Shell predicts a traded price of $5 a tonne of
carbon in 2005, rising to $20 a tonne (equivalent to $6 a tonne of CO2) by
2012.
"Our investment criteria today incorporate that cost of carbon," said David
Hone, Climate Change Adviser to the Anglo-Dutch group.
"What that's doing is starting to steer our investment portfolio and our
project portfolio to lower emission projects, or forcing higher emission
projects to go down the route of more investment to mitigate that carbon in
the first place."
"This is a big agenda now. It's serious stuff," said Mark Lilley, a partner
in risk management at the consultancy Accenture. "Business, and not just the
energy business, just has to be part of it on every level, or it risks
getting burned."
NEW TOOLS
Besides the internationally tradeable carbon pollution credits, the
governments agreed initiatives such as Clean Development Mechanisms (CDMs)
that allow developed nations to score credits by funding climate friendly
projects in developing countries.
On top of this, they have their own decisions to make on what kind of
domestic legislation to use to get the message through to industry.
Their options include bully tactics such as UK's Climate Change Levy on
greenhouse gas polluters, incentive-based schemes like Germany's guaranteed
prices for greener electricity, or a combination of both styles.
But it will be the business community that does the emissions reducing, the
trading, and the innovating.
"Now (after Bonn) we have targets, timeframes, market mechanisms and
opportunities to develop some new energy technologies," said Nick Hughes,
environmental policy adviser to the British oil multinational BP Plc.
"Now that those elements are there and there's an opportunity to do something
on a global scale, the ball is really rolling."
Green investment funds springing up everywhere are not just focussing on the
obvious alternative energy plays.
Emma Howard Boyd runs the Environmental Research Unit of British fund Jupiter
Asset Management, managing two green funds worth about 230 million pounds
($330 million).
About 70 percent of her funds are in "solution providers" like Danish wind
power stock Vestas and the British public transport operation FirstGroup that
is involved in testing fuel cell powered buses.
But the remaining 30 percent is reserved for companies from a wide range of
sectors that are minimising their environmental impact.
"We believe we are focussing on the companies of the future," she said.
"There are strong drivers coming into place to encourage their growth."
Nevertheless, it looks as though Big Oil, the motor industry, and power
utilities are destined to play the biggest part.
"It's not a revolution we are looking at here, it's mainly about doing
existing things better," said David Kernohan, Manager of the Energy
Environment Service at the consultancy Cambridge Econometrics.
"The new fuel technologies and fuel efficiency improvements achieved by the
energy producers and motor manufacturers are major achievements, even if not
very flamboyant ones."
The prospect of emissions trading alone will bring the trading skills of
existing energy giants and gas and power traders like Enron into play.
And, of course, all the corporate oil producers - even the environmentally
conservative giant Exxon Mobil - recognise the shift to cleaner gas, and are
scrambling as fast as they can in that direction with their production
portfolios.
"Gas has a major role to play as a bridge to sustainability and we are
talking about decades in that role," said Frank Chapman, chief executive of
the gas-rich energy group BG.
Independent Power Producers (IPPs) like International Power and Calpine and
their construction partners are obvious beneficiaries of CDM projects,
building cleaner replacement plants in developing countries for maximum
carbon credit points.
But nuclear generators, too, are looking for rehabilitation, now that the
environmental focus is off the toxic waste debate and on CO2 emissions -
where they are zero emitters along with more expensive wind and solar power.

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

JAPAN: UPDATE 1-Kobe Steel to raise 165 bln yen for power business.

07/26/2001
Reuters English News Service
(C) Reuters Limited 2001.

TOKYO, July 26 (Reuters) - Kobe Steel Ltd, Japan's fifth-largest steel maker,
said on Thursday it would raise 165 billion yen ($1.34 billion) in project
funds from banks to launch an electricity wholesale business.
It will borrow funds from banks including Dai-Ichi Kangyo Bank, Sanwa Bank,
the Industrial Bank of Japan and Sumitomo Mitsui Banking Corp.
Kobe Steel is currently building two coal-burning power generators with
output capacity of 700,000 kilowatts each in the western city of Kobe, with
plans to begin supplying electricity to the wholesale market from April 2002.
As part of ongoing moves to deregulate the power industry, Japan opened up
the market for the supply of electricity to large-lot consumers in March
2000.
The electricity is supplied to office buildings and commercial centres among
others, and represents some 30 percent of the power market.
Only a handful of firms have been successful so far in taking business away
from Japan's 10 main power utilities, which until last year enjoyed a
regional monopoly on the wholesale business.
Some foreign firms have also expressed an interest in carving a niche, most
notably Enron Corp, a U.S. energy marketing and trading giant.
Japan plans to review its deregulation measures in 2003.
Kobe Steel's shares ended the day up 3.13 percent, or two yen at, 66 yen.
($1=123.58 Yen).

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

LOCAL
ENRON CANCELS MIAMI-DADE PLAN POWER PLANT BUILDER FAVORS DEERFIELD SITE
ELLIS BERGER Miami Bureau

07/26/2001
South Florida Sun-Sentinel
Broward Metro
4B
(Copyright 2001 by the Sun-Sentinel)

Enron Corp. is focusing its energies on building a power plant in Deerfield
Beach now that it has canceled construction plans for a site in far south
Miami-Dade County, a company spokesperson said Wednesday.
"We're not renewing our option on the Miami-Dade property," said Lea Sooter
in a telephone interview from Enron headquarters in Houston. "This makes
Deerfield Beach that much more important to the citizens of Florida. I don't
know what the big picture is for Florida, but there is a definite need for
power."
But Sooter refused to conclusively rule out the possibility Enron could
someday build on another site not far away in south Miami- Dade. She
acknowledged that a company project manager met with officials of Homestead,
a city faced with severe financial problems. But nothing came of the meeting.
"We were approached by the city of Homestead, and were listening to what they
could bring to the table," she said in a prior interview. "We do that all the
time on projects that never get developed."
Charles LaPradd, Homestead's communications and project manager, said city
officials had no specific site in mind, but let Enron know the company would
be welcome in the city that has its own power plant.
"It never went anywhere, but it's still open," LaPradd said. "It was a `we're
here' kind of thing. We showed our power plant to them. It's always good to
have backup. We have three of our 16 main generators down."
The Deerfield Beach project is currently stalled. Given the go- ahead in June
by the city's Development Review Committee, it was put on hold last week when
the Broward County Commission imposed a moratorium on new power-plant
construction. Enron officials said the company was considering legal action
as well as trying to convince the state Department of Environmental
Protection to intervene.
The moratorium, enforced by denying the air-quality operating permits are
required for power plants, is to end May 1.
Sooter said Enron's Miami-Dade decision was based on which site would best
serve the public interest.
"It is not unusual for us to look at multiple sites and choose to build on
the one that is going to work best for everyone," she said.
The action clears the way for Miami-Dade's Department of Environmental
Resources Management to close a construction landfill near the 61-acre site
at Southwest 256th Street and 97th Avenue, east of the Homestead Extension of
the Florida Turnpike.
Environmentalists and residents of the nearby Lakes of the Bay neighborhood
vehemently opposed the project. But Sooter said that opposition had nothing
to do with the switch in plans.
"Enron wants to be seen as the good guys," she said. "The primary benefit we
can give the residents of Miami-Dade is to let the county close the landfill
in a timely manner. DERM can now go forward on their own time line with Enron
out of the loop."

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

A Section
Rove's First Step Toward Shedding Stock Took 5 Months
George Lardner Jr.
Washington Post Staff Writer

07/26/2001
The Washington Post
FINAL
A04
Copyright 2001, The Washington Post Co. All Rights Reserved

Shortly before he was named as President Bush's senior adviser in January,
Karl Rove met with a transition team lawyer who took a look at Rove's stock
portfolio, heavy with companies that do business with the government, and
told him he would probably have to sell.
"He wanted it cleaned up as fast as he could," said the lawyer, Fred
Fielding. "He didn't want the bother." But Fielding advised Rove to wait
until he obtained a certificate of divestiture from government lawyers -- a
determination that the stocks did, indeed, pose a conflict -- in order to
defer paying capital gains taxes.
Yet, it took more than five months for that step to occur, and, in the
meantime, Rove met with officials or trade association representatives of at
least six of the companies in which he said he had more than $100,000 worth
of stock: Intel, Enron, General Electric, Johnson & Johnson, Pfizer and
Cisco.
Given Rove's preeminent position in the Bush White House and the size of his
holdings, those meetings have generated the very trouble Rove had said he
wanted to avoid. Democrats have seized on the meetings to accuse the
administration of the kind of ethical lapses that Republicans were quick to
jump on during the Clinton administration, and Rep. Henry A. Waxman
(D-Calif.) has demanded that Rove's conduct be referred to the Justice
Department.
Republicans have said the controversy smells of political payback -- "putting
politics before the facts," White House spokesman Dan Bartlett said of Waxman
-- and dismissed suggestions that the meetings constituted a conflict of
interest.
In a June 29 letter to Waxman, White House counsel Alberto R. Gonzales
defended Rove, saying that he "either had passing, inconsequential contacts"
with some of the companies in his portfolio "or participated in broad policy
discussions" on issues affecting them, such as energy policy. None of this,
Gonzales said, "presents an ethical problem under applicable regulations."
But several ethics experts said they thought that determination should be
made by the Justice Department, not the White House, although they said they
doubted a review would result in anything more than a civil penalty, if that.
One expert, a Republican who asked that his name not be used, blamed White
House lawyers for political ineptitude in failing to see that "top guys" like
Rove should have been given priority instead of being kept waiting for weeks
while lower-ranking staffers had their holdings reviewed.
"If the system had worked efficiently, within a short period of time, a
certificate of divestiture would have been issued, [Rove's] stock sold, and
that would have been it," the source said. "A lot of forms have to be
reviewed, but if there are problems, most of them are going to wind up on the
Fed Page. If the chief of staff or senior political adviser gets into
trouble, it's Page One."
Under the federal conflict-of-interest law, it is a crime for any government
official to take part "personally and substantially" in a government action
about any "particular matter" in which he or she has a financial interest.
Regulations issued by the Office of Government Ethics cover appearances of a
conflict, or situations that would not violate the criminal law but "would
raise a question in the mind of a reasonable person about [the official's]
impartiality." Failing to meet that standard can result in a reprimand,
suspension or dismissal.
President Bush told his staff at its swearing-in ceremony Jan. 22 that he
expected "every member of this administration to stay well within the
boundaries that define ethical and legal conduct. This means avoiding even
the appearance of problems."
According to the White House, lawyers from the counsel's office met with Rove
in early April and again April 24 to inform him of several options he had in
addition to selling his stocks. White House spokeswoman Anne Womack said
these included seeking waivers that would have allowed him to participate
despite a conflict or selling his stocks down to permissible "threshold
levels."
Rove said he still wanted to sell everything and the lawyers started working
on an application for a certificate of divestiture. Under OGE guidelines, it
amounted to an affirmation on Rove's part that he had to sell the stocks "to
eliminate or prevent a conflict of interest."
Waxman said last week that the White House did not have the power to judge
Rove's conduct. He cited the federal law requiring that executive branch
departments, including the White House, report to the Justice Department "any
information" relating to criminal violations by an employee.
"Congress appropriately believed that the Department of Justice would be in a
better position to render an impartial judgment than the employee's own
department or agency," Waxman wrote.
The Clinton White House was boxed in by that law on two occasions. Former
White House counsel Abner Mikva said he was forced to ask the Justice
Department whether national security advisers Samuel R. "Sandy" Berger and
Anthony Lake had violated conflict-of-interest rules by failing to dispose of
certain stocks after being told to do so.
Mikva said he viewed the violations as technical and completely
unintentional, but under the law he had no choice. "They had stock in a
couple of oil companies, nothing approaching a significant holding," Mikva,
now a law professor at the University of Chicago, said in an interview.
Berger and Lake "never met with the individual companies, but they were
dealing with the energy crisis," Mikva said. "Beth Nolan [Mikva's deputy]
brought it to my attention. She said, 'You've got to turn this over to
Justice.' I said, 'This is ridiculous.' She said, 'The law is very clear; we
have no discretion.' "
In Berger's case, he was told by White House lawyers to sell 1,500 shares of
Amoco Corp. that had been held for years in a trust established by his wife's
grandfather. He was reluctant, fearing a stiff tax for stocks held so long,
but he was informed in March 1994 that he had to sell since he was involved
in questions about whether to keep sanctions on Iraq and Libya, policy
decisions that could affect his stock. He was told he could defer his capital
gains taxes by using the proceeds to buy "permitted property" such as an
open-end mutual fund.
Berger agreed to sell, but then, sources have said, forgot to do so until
White House lawyers prodded him in mid-June 1995.
Lake was "even more innocent," Mikva said. Lake was told in 1993 to sell
stock in four energy companies -- Exxon Corp., Mobil Corp., Duke Power Co.
and TECO Energy Inc., because he would be making decisions on energy policy
as national security adviser. Mikva said Lake told his secretary to forward
the instructions to his broker, but she simply filed the instructions,
thinking the sales had been completed. Lake has said he discovered from his
broker in June 1995 that he still owned the stocks and sold them the next
day.
Justice "sat" on the cases for more than a year, Mikva said, but Lake
eventually paid a fine of $5,000 to close a civil probe, and Berger agreed to
pay $23,000. The Bush White House, Mikva said, "couldn't be more wrong" if it
thinks it can absolve Rove without Justice Department scrutiny.
Rove's March 12 meeting with Intel executives and associates has generated
the most controversy because they brought up a merger application that they
hoped the government would approve.
Gonzales said Rove was "noncommittal and offered no substantive response."
The White House counsel said the matter was in the hands of an interagency
review panel "on which Mr. Rove did not sit and in which he played no part."
New York University law professor Stephen Gillers said he did not think Rove
could be called to account for saying, "The people handling this are Joe and
Harry.' I realize they may then go to Joe and Harry and say, 'Karl sent me,'
but I don't think this violates the rule."
Another ethics specialist, Monroe Freedman, disagreed, saying Rove created
"an appearance of impropriety" simply by meeting with Intel when he held more
than $100,000 worth of stock in the company.
"The problem you have is that a reasonable person would question the
propriety of what went on," Freedman said. "We are not required to accept
what they say about their meeting not having anything of substance to it."
Gonzales said Rove sought no waivers because he "took care to avoid" any
direct participation in matters that would have required one. Gonzales did
not address the question of an appearance of impropriety, but White House
spokesman Bartlett said Rove rejects the notion that he had created one.
In addition to the Intel meeting, the White House has also acknowledged that
Rove attended meetings that helped shape the administration's energy policy
at a time when he owned a substantial amount of energy company stock,
including Enron Corp., the Houston-based natural gas and electricity trader
embroiled in energy disputes in California, and General Electric Co., which
has a nuclear power division. He also reported holdings of up to $50,000 each
in Royal Dutch Shell Group and BP Amoco.
Rove spoke with Enron Chief Executive Officer Kenneth Lay on subjects ranging
from energy policy and global warming to appointment of an Enron-favored
candidate to the Federal Energy Regulatory Commission.
Gonzales said that Rove was not a member of the task force that developed
Bush's energy policy and that the discussions he took part in about "the
contours" of the policy were general and had no direct and predictable impact
on his Enron holdings.
Rove also met March 20 with a group of executives from the Nuclear Energy
Institute, which develops policy on key legislative and regulatory issues
affecting the nuclear power industry and which counts GE's Nuclear Energy
division as one of its members.
On May 11, he met with John Chambers, president of Cisco Systems Inc., which
makes Internet routing equipment, during a trip to Palo Alto that Rove made
for the Republican National Committee. On June 5, Rove set aside half an hour
in his office for an introductory meeting with two lobbyists from the
Pharmaceutical Research and Manufacturers Association; its members include
Johnson & Johnson and Pfizer Inc.
He finally received his divestiture orders June 6 and sold all his stock June
7.
Staff researchers Lynn Davis and Madonna Lebling contributed to this report.

http://www.washingtonpost.com
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

Insider Selling by Enron Execs Speaks Louder Than Their Words
By Christopher Edmonds  <mailto:cedmonds@thestreet.com>
Special to TheStreet.com
7/20/01 7:32 AM ET
URL: <http://www.thestreet.com/funds/chrisedmonds/1496696.html>

At Enron, actions are speaking differently than words.
At the same time as Enron Chairman Ken Lay and Enron President and CEO Jeff
Skilling were touting their company's stock as undervalued, both were in the
process of selling hundreds of thousands of shares.
In an exclusive interview </comment/streetsidechat/1186095.html> with
TheStreet.com last November, Lay suggested that Enron stock -- then trading
in the mid-$70s at nearly 50 times earnings -- was undervalued. "Comfortable
that it's worth that [50 times earnings], yes," he said. "As a matter of
fact, some of us here and, of course, many analysts would maintain that even
that is undervaluing the company."
Yet, since the beginning of the year, Lay has simultaneously exercised and
sold nearly 400,000 shares, continuing a program of exercising options and
selling the shares that dates back to last November. This year's sales were
all at prices below the November prices at which he said the shares were
undervalued. According to data compiled by Thomson Financial/First Call,
Lay's options transactions occurred between $52.95 and $82 a share.
In February, Lay stepped down as Enron's CEO, retaining the title of
chairman.
Skilling's words and actions were similar. During a January analysts and
investors meeting in Houston, Skilling said he believed Enron stock was worth
$126 a share. At the same time, he was in the middle of completing sales of
130,000 shares of Enron stock he registered in November 2000. Since January,
Skilling has registered for sale an additional 270,000 shares of Enron. And
since the first of the year, he has sold stock at between $52.95 and $80.57 a
share.
Both Lay and Skilling still hold large positions in Enron. As of May 30, Lay
and his family reportedly owned more than 2.66 million shares, and Skilling
controlled more than 1.1 million shares. They each acquired more than 100,000
shares from the company in January.
Enron spokesperson Mark Palmer says the sales are "program sales" that
involve the exercise of expiring options and the sale of stock to cover the
costs and tax liability, a common practice among executives at many major
corporations.
And, Palmer notes that Enron's compensation makes such sales almost routine.
"A very significant portion of senior management's compensation is paid in
equity," he says.
Mixed Messages
Analysts and investors worry about the messages such high-level insider sales
send, especially when at the same time executives are touting the stock's
appealing value. "Certainly, it's a concern to see the chief executive
selling so aggressively," says Jeff Dietert, an analyst at Simmons & Co., a
Houston energy investment boutique and a member of the TSC Energy Roundtable.
</comment/streetsidechat/1242533.html> "Especially when they are saying the
stock is undervalued. That sends a very mixed message to investors."
While acknowledging Enron's unique equity-based compensation program, Dietert
says recent selling at the top is unique. "You constantly see a regular group
of people selling as they monetize their compensation" at Enron, he says.
"However, the larger sales from senior executives are different. Sales have
been weighted much more heavily to Lay and Skilling than they have been in
the past."
Dietert's 12-month price for Enron is $58, and his firm has not provided
banking services to Enron. Simmons does not rate companies.
Another analyst who asked not to be named was more critical. "The [insider
sales] are disconcerting to say the least. In a market like this where the
slightest indication of lack of confidence sends a stock down precipitously,
their actions are speaking louder than their words."
Dream vs. Reality
One reason for the mixed messages may have been the company's belief in
broadband. At the time Skilling made his now famous $126 tout, he indicated
that nearly $40 of value would come from Enron's now flailing broadband
business. As my colleagues Adam Lashinsky
</comment/siliconstreet/1489696.html> and Peter Eavis
</comment/detox/1489630.html> have aptly chronicled, Enron's great dream for
broadband turned into a nightmare.
"The world certainly looks a lot different today than it did in January,
especially to Enron," says Tom McIntyre, president of Dessauer & McIntyre
Asset Management, a Massachusetts-based investment adviser. "You sure don't
see projections from anyone assigning value to broadband now." In fact, on
Enron's second-quarter earnings call, Skilling lamented the fact that
investors seem to be assigning negative value to the company's telecom
operations. McIntyre holds a long position in Enron.
Still, investors might have expected Skilling's words to be backed by his
actions. When he made the bullish comments in January, Skilling was selling
stock even though the shares were trading near $80 a share, a 57% discount to
his target price. That led the analyst to quip, "If it's not an expensive
stock, why are they out there selling it?"
To others, however, the sales are just noise that distracts from a solid
growth story. "You would prefer it if they would never sell," says McIntyre.
"I'd rather watch them hold the shares like I do. However, [Skilling] still
owns well over a million shares, and the consistent sales suggest they have a
program to sell whether the stock is near its high or at its lows." (Records
show that Skilling has been selling 10,000 shares each week since
mid-November.)
The two executives "have a long record of creating and sustaining value for
shareholders. I have a high level of confidence that Skilling can continue
that record," McIntyre said.
But appearances count. "It's a question of perceptions," says McIntyre. "In
this market, anything can get a company, and the insider-sales news does
hurt."
That's especially true when actions and words don't mesh. As the analyst
quipped, "It's what they call an oxymoron. You are saying one thing and doing
another."

Enron's Own Dot-Com Bubble Finally Popped
By Adam Lashinsky  <mailto:alashinsky@thestreet.com>
Silicon Valley Columnist
7/13/01 9:58 AM ET
URL: <http://www.thestreet.com/markets/adamlashinsky/1490114.html>

Enron (ENE <http://tscquote.thestreet.com/StockQuotes.jhtml?tkr=ENE>:NYSE) is
no longer an Internet company.
Of course, the Houston-based energy distribution and trading concern never
was a dot-com, though it tried to convince Wall Street it was. In early 2000,
Enron went so far as to suggest to investors the precise value of its nascent
money-losing bandwidth business. Wall Street obediently obliged, inflating
Enron's share value by as much as 75% from the time the company started
bragging about its prospects, a disconnect noted disapprovingly here
</comment/siliconstreet/928870.html> a year ago April.
Now that dot-com valuations have gone the way of full-service gas stations,
Enron is finally owning up to reality regarding the broadband business. "It's
like someone turned off the light switch," Enron President and CEO Jeffrey
Skilling told investors Thursday morning while announcing an otherwise solid
quarter. "Revenue opportunities have just dried up."
Indeed, Enron recorded a $109 million loss related to its broadband
businesses, compared with income before interest, minority interest and taxes
of $17 million in the year-earlier period. Skilling noted that Enron would
dramatically scale back the burn rate for its broadband business and that the
expectations for resuming progress in this market have been pushed back by at
least a year.
The story was so different a year and a half ago. With Enron's shares trading
in the low 50s, Enron convinced analysts -- who openly admitted their
ignorance of the telecommunications issues important to the broadband market
-- that bandwidth delivery opportunities were huge. Enron cajoled the stock
price into the $90s by August, after telling analysts that the broadband
business alone was worth $37 per share, or $27 billion.
Today, despite sound performance in its key, wholesale energy-distribution
business, Enron's shares are worth $49.55. Even Wall Street, convinced
perhaps that the prospects for an IPO of the once-hot Internet operations are
totally dead, has gone back to analyzing energy prospects.
Ronald Barone, a "natural gas/energy convergence" analyst with UBS Warburg in
New York, lowered his price target Thursday on Enron from $102 to $70. In a
report, he noted that his earlier projected price applied a multiple of 40 to
his previous 2002 earnings target of $2.10 per share and $17 worth of value
for broadband services. Now Barone assumes 32 to 33 times estimated 2002
per-share earnings of $2.15 (the same EPS estimate CEO Skilling offered on
Thursday's conference call) and zero value for broadband.
Enron must be one of the most promotional companies on the planet. If
investors played the old Bob Newhart drinking game and had to refill their
mugs every time Skilling said "outstanding" in relation to second-quarter
performance, they would have been drunk before the question-and-answer
session. But Skilling doesn't like the new reality.
"Everything has been taken out of our stock for the bandwidth business," he
correctly observed. "We are probably getting a negative impact on the stock,
and I don't think that's right."
Interestingly, as recently as January, management at Enron suggested to Wall
Street that its discounted cash-flow models suggested a value of $126 for the
stock, including $40 a share for the broadband business. Why companies feel
it's proper even to comment on their own stock prices is a wonder. Skilling
had nothing to say about the $126 valuation, and analysts didn't query him
about it.
Oh, it's right all right. No longer the bright shining prospect, broadband is
a real drag on the company now, albeit a small one. Robert Franson, an
analyst with Bear Stearns in New York, notes that the old IPO rumor has been
replaced by one suggesting Enron will sell or lease its broadband network
while maintaining the services businesses built around it. "One great thing
about Enron is that it is constantly getting out of businesses that aren't
right," he says.
Bear Stearns had the luxury of initiating coverage on Enron only in December,
so it was able to sidestep the trap of perceived value to the broadband
business. Donato Eassey of Merrill Lynch is hanging on to hope. "We believe
Enron at current prices offers investors a free call option on the future of
broadband, and the ultimate turnaround in the telecom market once it occurs,"
he told clients in a report. Eassey has a price target of $74.50 on Enron's
shares.
For what it's worth, in April 2000 Enron traded for about 43 times Wall
Street's 2001 earnings estimates of about $1.65 per share. Now the company
predicts 2001 EPS of $1.80 (showing the success of its main wholesale
business), and is valued at about 23 times its own 2002 earnings estimates.
It's worth noting that Enron is a good example of a company that has taken
advantage of the Internet. Skilling said 60% of the company's transactions
occurred on the Internet in the second quarter. That's impressive, but no
more so than all the business Dell or Cisco does online. Efficient use of
Internet infrastructure does not an Internet company make.
Interestly, Enron is in much better shape than the upstart companies to which
it eagerly compared itself 18 months ago in justifying a higher valuation. By
giving up all of the hype-driven market value it received from gullible
investors with dot-com stardust in their eyes, Enron merely is back to about
where it belongs, or, as Skilling argues, perhaps a little lower. Comparable
stand-alone "bandwidth" companies like Akamai and Exodus have given up most
of their boom-time value.
Enron prudently says it will maintain a stake in the ground of broadband
services so it can benefit when the market materializes. Perhaps when that
happens, Wall Street will value the incremental business for what it's worth,
not what they dream it's worth.


I suggested yesterday that you ask Sheila about the timeframe, and you told
me you would just go ahead and do it.  I'll just tell her it isnt' ready. It
doesn't matter to me.

Kay

From: Suzanne Adams@ECT on 05/16/2001 09:44 AM
To: Kay Mann/Corp/Enron@ENRON
cc:

Subject: Re: GE books

I asked you yesterday when you needed these binders.  It's a good thing I had
them almost done.  I would appreciate it in the future if you would give me a
heads up on what is happening.  This morning Dan, Sheila and you are all
needing things, and I'm only one person.

	Kay Mann@ENRON
	05/16/2001 08:57 AM

		 To: Suzanne Adams/HOU/ECT@ECT
		 cc:
		 Subject: GE books

There is a 130 phone call today regarding the stuff you are putting together
re GE.  It would be helpful if it was ready a couple of hours in advance.

Thanks,

Kay


Chris:

There are some issues with the attached form - who do I send revisions to?
In addition, our legal department needs to get a copy of the court order
authorizing ENA to enter into GISBs and transactions - who do contact
regarding this issue?

Regards - Michael McCall

-----Original Message-----
From: Germany, Chris [mailto:Chris.Germany@ENRON.com]
Sent: Tuesday, March 12, 2002 11:39 AM
To: mmccall@sempratrading.com
Cc: Draper, David
Subject: FW: Sempra Energy Trading GISB

These days, its easier for our legal department to draft or approve a new
GISB than to find any of the existing documents.  The attached document is
for Enron North America Corp.  David is going to see if they can use it.

If your legal department approves, please print 2 originals, fill in the
Sempra information, sign it, and send it to me.

Thanks

Chris L. Germany
Manager, Gas Trading
Phone 713-853-4743
Fax  713-646-3059

Address:	Attn:  Chris Germany  ECS 04444
		1400 Smith St
		Houston, TX 77002

>  -----Original Message-----
> From: 	Dickson, Stacy E.
> Sent:	Monday, March 11, 2002 4:33 PM
> To:	Germany, Chris
> Cc:	Mann, Kay
> Subject:	Sempra Energy Trading GISB
>
> Chris,
> Attached is a draft of a GISB with Sempra.  Please call me if you have any
questions.
>
> Stacy
>
> >  <<SEMPRAGISB.doc>>

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

**********************************************************************
This e-mail contains privileged attorney-client communications and/or confidential information, and is only for the use by the intended recipient. Receipt by an unintended recipient does not constitute a waiver of any applicable privilege."

Reading, disclosure, discussion, dissemination, distribution or copying of this information by anyone other than the intended recipient or his or her employees or agents is strictly prohibited.  If you have received this communication in error, please immediately notify us and delete the original material from your computer."

Sempra Energy Trading Corp. (SET) is not the same company as SDG&E or SoCalGas, the utilities owned by SET's parent company.  SET is not regulated by the California Public Utilities Commission and you do not have to buy SET's products and services to continue to receive quality regulated service from the utilities."
**********************************************************************


PROCESSING

None...

TENDERED

02-062	Questar	Eff 1/1/02		Interconnect & Operating K	  	EXECUTED

25374	Oneok		Extend to 3/31/02	12,000/d	Panhdle to Beav #1	EXECUTED

26471	PPL		Eff RR In-Service	20,000/d	Swap RP Vol		EXECUTED

26758	Duke		Eff 3/1-3/31/02	40,000/d	Swap RP Vol		Tendered 2/28

27342	Sempra		Eff 3/1/02		30,000/d	Swap RP Vol		Tendered 2/28

27352	Sempra		Eff 3/1/02		21,500/d	Swap RP Vol		Tendered 2/28

27420	WTG		Extend to 3/31/02	2,584/d	Panhdle to Winkler	EXECUTED

27496	Reliant	Extend to 3/31/02	30,000/d	SJ Pool to Blmfld	Tendered 2/28

27642	Calpine	Eff RR In-Service	40,000/d	Swap RP Vol		EXECUTED

27803	BP		1/1/03-12/31/04	25,000/d	Blmfld to Needles	EXECUTED

27821	Cinergy	2/1-2/28/02		5,000/d	Cen Pool to Topock	Negotiating 2/1

27834	WGR		4/1/02-10/31/02	5,000/d	WTx Pl to PG&E Topk	EXECUTED

27835	WGR		11/02 - 12/03		10,000/d	WTx Pl to Socal	EXECUTED

27847	Tenaska	2/26/02 only		10,000/d	WTx Pl to Halley	EXECUTED

27847	Tenaska	Extend to 2/27/02	10,000/d	WTx Pl to Halley	EXECUTED

27848	Sempra		3/1-3/31/02(LFT)	15,000/d	Blmfld to Southwest	EXECUTED


Sally
here is a rough cut draft for you to expand and revise.  Please use as a
template to include whatever language is
appropriate.  After the draft is complete I would run it by Rick to see if
there is anything he would add.  I hope
the meeting with Shankman went well.

Tom


17:40:21 Synchronizing Mailbox 'Perlingiere, Debra'
17:40:21 Synchronizing Hierarchy
17:40:22 Synchronizing Favorites
17:40:22 Synchronizing Folder 'Inbox'
17:40:29 	   19 item(s) added to offline folder
17:40:29 	   1 item(s) updated in offline folder
17:40:29 	   2 item(s) deleted in offline folder
17:40:29 Synchronizing Folder 'Outbox'
17:40:29 Synchronizing Folder 'Sent Items'
17:40:30 	   3 item(s) added to offline folder
17:40:30 	   7 item(s) deleted in offline folder
17:40:30 Synchronizing Folder 'Calendar'
17:40:31 	   1 item(s) updated in offline folder
17:40:31 Synchronizing Folder 'Contacts'
17:40:31 Synchronizing Folder 'Drafts'
17:40:32 Synchronizing Folder 'Journal'
17:40:32 Synchronizing Folder 'Notes'
17:40:32 Synchronizing Folder 'Tasks'
17:40:32 Synchronizing Folder 'Deleted Items'
17:40:34 	   9 item(s) added to offline folder
17:40:34 	   28 item(s) deleted in offline folder
17:40:34 Synchronizing Views
17:40:34 Synchronizing Forms
17:40:35 Done


I really don't remember the name, but it was a man.  He specifically quoted
dollar amounts of $9,475.808.18 vs. $9,298,971.71.  Hope this helps!

Thank you very much1


I have received preliminary information from D&B.  I think several
issues/questions have been raised that if explored, could result in a better
solution for the money.

Option 1
The update frequency for our current file can be improved from quarterly to
monthly for a cost of $87,000 (USD) through March, 2001.

Option 2
I wasn't sure what specific data in the file you might be interested in.  If
you are particularly interested in the Financial Stress Score and Credit
Score, for example, there are multiple alternatives :

 2a) Keep quartlery refresh of base data (party name, etc) and refresh scores
that are added/changed on a monthly basis.  Cost - $1.17(USD) per
record.          Note that there are 575,000 records in the file currently
with financial and credit scores, making this potentially a very expensive
alternative
        (575,000 X 1.17=$ 672,750).

 2b) Batch or FTP updates of the financial and stress scores can only be
provided monthly.  D&B is working on a solution that would provide a
weekly         update to their customers in a batch or FTP manner, but has
not committed to when this will be ready.  Therefore, if more timely updates
than monthly                          are desired, it is also possible to
transactionally access records one at a time using D&B's software.  The cost
for this is extremely high at $10.52         (USD) per score.

Option 3
D&B Connect Product.
 D&B Connect is a tool set of matching software, an externally validated
reference file, credit and marketing information, and D&B services that
enables the  most effective integration of customer information and
third-party information with D&B information.  Only this type of process and
information integration  capability can facilitate and ensure accurate
identification, linkage and maintenance of your customer's complete
relationship.   In addition, D&B Connect  assures organizations of
referential integrity by providing an automated and electronic link to D&B so
that the most recent D&B information is always  transmitted to your
organization and updated within your local D&B Connect Reference File.  D&B
Connect is scalable.

 Cost Typically ranging from
 * Customer Access Module (CAM) Batch- - $25,000
 * CAM Online - $50,000
 * Full Information Integrator - $350,000 + data

With more specifics as to your needs, this option should perhaps be pursued.

Questions/Issues

1) D&B had questions regarding the use of their data and whether Enron
customers would be offered this information for a fee or free.  I explained
that I  did not feel the data would be offered directly to Enron customers,
but that it would be used to support analysis that would be available
externally via web  site, etc.  All pricing above is based upon this
understanding.  If I have not portrayed the usage correctly, it will be
imperative to get a better understanding  before final pricing can be
negotiated.

2)  Are there specific data elements that you are interested in ?
Alternatives may vary by data element.  Financial Stress Score and Credit
Score reference  above were explored as an example.

3)  What is timeframe for needing a solution ?

4)  Financial Stress Score and Credit Score are only available on U.S.
companies.  A comparable measure - Global Failure Score (the liklihood of
default or  bankruptcy)  is available for international companies.  This
rating score however, is NOT currently available via a batch or FTP manner.
This could result  in additional cost if we wish to pursue obtaining this
score in a batch manner.

5)  Pricing also varies whether the information is to be used for credit
analysis or risk management decisions versus for marketing purposes.  This is
probably  negotiable as the data is the same.  The thought process is that if
the repository is used for credit or risk decisions, D&B will see decreased
usage and  revenue on a transactional basis by the credit departments.

 If you would like me to follow up further, please give me a call at
713-853-6079.


you ever get the Brattle prez?  jeff


Joe Sutton's eSpeak for this Thursday, October 27, has been postponed.  The
eThink team will pass along the new date once we have it on the schedule.


Can we discuss this? Rick
 -----Original Message-----
From: 	Delainey, David
Sent:	Tuesday, May 15, 2001 6:37 PM
To:	Rick Buy/HOU/ECT@ENRON
Subject:

Rick, do I really need to do this on an on-going basis?

Thanks for the heads up today.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/EES on 05/15/2001 06:36 PM ---------------------------
From:	Kenneth Thibodeaux/ENRON@enronXgate on 05/14/2001 05:32 PM
To:	John J Lavorato/ENRON@enronXgate, Louise Kitchen/HOU/ECT@ECT, Greg Whalley/HOU/ECT@ECT, Jeffrey A Shankman/ENRON@enronXgate, John Sherriff/LON/ECT@ECT, Ted Murphy/LON/ECT@ECT, David Port/ENRON@enronXgate, Cassandra Schultz/ENRON@enronXgate, Rick Buy/ENRON@enronXgate, Jeffrey McMahon/ENRON@enronXgate, David W Delainey/HOU/EES@EES, Don Black/HOU/EES@EES, Michael R Brown/LON/ECT@ECT, Kevin Hannon/Enron Communications@Enron Communications, Ken Rice/Enron Communications@Enron Communications, Raymond Bowen/ENRON@enronXgate, Mike McConnell/HOU/ECT@ECT
cc:	Shona Wilson/NA/Enron@Enron, Chris Abel/HOU/ECT@ECT, Tammie Schoppe/HOU/ECT@ECT, Araceli Romero/ENRON@enronXgate, Kimberly Hillis/ENRON@enronXgate
Subject:

Attached is the Enron Total Trading Loss Notification for May 11, 2001.  The Office of the Chairman for Enron Americas, Enron Industrial Markets, Enron Global Markets, Enron Broadband Services, Enron Energy Services, and Enron Europe is responsible for printing out a hard copy of this memo, signing it and returning the hard copy to Chris Abel who will forward it to RAC to obtain their signature.


fyi

---------------------- Forwarded by Rockford Meyer/FGT/Enron on 07/25/2000
07:31 AM ---------------------------
From: Jack Boatman on 07/24/2000 04:19 PM
To: Robert Hayes/FGT/Enron@ENRON, Rockford Meyer/FGT/Enron@ENRON, Robert
Kilmer/FGT/Enron@ENRON
cc:

Subject: Entergy - Desoto County Project / Potential Change in FP&L "Strategy"

Per discussions with Entergy today regarding the Desoto County peaking
project:
 - Entergy has an internal meeting planned later this week to decide if they
want to continue with the project
 - The Desoto site is one of the sites which IPS did the groundwork for, as
far as permitting, etc.

 * Entergy has a meeting scheduled with FPL to discuss a "tolling
arrangement, whereby FP&L would provide gas        deliveries to obtain a
portion of the power output  ------  Note:  I said this would be a major
change in FP&L's         business approach and Entergy indicated FP&L appears
to be changing their thinking regarding merchant power        plants and that
FP&L may announce a new "position" on merchant plants in the next few weeks


Ken,

Just a note to tell you that I hope you  and your family are weathering this storm.  You are a superior executive, a  friend to many and a philanthropist of the first order.  We are all  cheering for you.

Lucie


Per Chris' memo below, it appears to me the question we need to be asking is
this:
Was this contract number from CES (columbia gulf k#64502) valued in the
original deal?  Originally Chris was told that this contract was a volumetric
FT contract, when in fact it is a 100% demand charge contract.  Since it is a
deal tied to the Devon production, I don't know how (or if) it was valued by
us.  Theoretically, we could have taken the difference between the max IT
rate (which is what we get to deduct from the producers' price) and the
amount of the demand + variable cost of the FT contract and MTM'd $$$.   Did
we do this?   If we did, then I believe we have a true up issue with CES.  If
we did not value anything, then I think we are O.K.

Please advise.

Chris Germany
03/21/2000 02:40 PM
To: Scott Goodell/Corp/Enron@ENRON, Colleen Sullivan/HOU/ECT@ECT, Mark
Breese/HOU/ECT@ECT
cc:
Subject: CES Capacity Issues

I will be emailing all of you with any capacity issues I find.

CGLF k#64502 ;  This is an offshore FTS2 contract that we use with the West
Cam Devon production.  The demand charge is $1.4381 on a volume of 29,000 dts
and the commodity is $.0024.  According to my notes; this is a volumetric
demand contract and the volumetric demand charge in my sheet is $.0648

I am changing this to a regular demand charge contract in Sitara and the
worksheet.

Comments/Questions?


I'm so glad to hear it! Cara suspected it was an EOL bug that had since been
fixed. Thanks for clarifying this.

Kate

From: Duong Luu/ENRON@enronXgate on 03/26/2001 11:24 AM CST
To: Cara Semperger/PDX/ECT@ECT, Steve Nat/ENRON@enronXgate
cc: Tim Belden/HOU/ECT@ECT, Mike Swerzbin/HOU/ECT@ECT, Kate
Symes/PDX/ECT@ECT, Diana Scholtes/HOU/ECT@ECT, Sean Crandall/PDX/ECT@ECT, Tom
Alonso/PDX/ECT@ECT, Mark Fischer/PDX/ECT@ECT, Robert Badeer/HOU/ECT@ECT, Jeff
Richter/HOU/ECT@ECT, Chris Mallory/PDX/ECT@ECT, Matt Motley/PDX/ECT@ECT,
Michael M Driscoll/PDX/ECT@ECT

Subject: RE: AN EOL GLITCH THAT HAS TO DO WITH APRIL DEALS

Hello Cara,

We have determined that the EOL Bridge in production is currently working and
handling time zone issue very well.
Back in June 2000, there is a bug, which related to time zone issue and we
fixed it since then. All deals that you
provided to us had entered before July 2000.

We will run a query to identify if there are any other deals, which have
similar problem with time zone.

Please let me know if you find more problems with EOL Bridge, we will fix it
immediately.

Your help is highly appreciated

Regards,
dluu

 -----Original Message-----
From:  Semperger, Cara
Sent: Friday, March 23, 2001 6:49 PM
To: Nat, Steve; Duong Luu/HOU/ECT@ENRON
Cc: Belden, Tim; Swerzbin, Mike; Symes, Kate; Scholtes, Diana; Crandall,
Sean; Alonso, Tom; Fischer, Mark; Badeer, Robert; Richter, Jeff; Mallory,
Chris; Motley, Matt; Driscoll, Michael
Subject: AN EOL GLITCH THAT HAS TO DO WITH APRIL DEALS

I ran across a bunch of EOL deals that have not represented the April Time
zones right. They marked through April 6th as PST. Daylight savings time is
on April 1.  I don't see any new deals so I am hoping that it was something
in the programming that was corrected.  Steve, we will let you know if we see
any new ones, but the latest one looks like it was done a while ago. All of
these deals are fixed.

347721
353734
353813
352524
361210
352809
346646
346647
352628
360473
360475
360477
360483
361244
366541
366543
346822
348162

Cara Semperger
03/23/2001 01:39 PM
To: Kate Symes/PDX/ECT@ECT
cc:
Subject: A whole bunch of deal errors that I want your opinion on .

I just ran a forward ob for April 2 to check for deals that are in PST when
they should be PDT.

Do you want to change all of these to PPT deals, or do you have time
constraints today?  I need these changed today because we are already setting
up for April.

SW Regions
347721
353734
353813
407053
352524
361210
352809
346646
346647
352628
360473
360475
360477
360483
361244
366541
366543
346822
348162

NW Regions
318870
349864

I am particularly worried about how these are corrected because they are long
term transmission deals that cannot be autoscheduled.
503107
503112


-----Original Message-----
From: 	Huynh, Catherine
Sent:	Friday, October 19, 2001 11:38 AM
To:	Cash, Michelle
Subject:	RE: Enron Metals North America Voluntary Separation

Michelle,

I'm quite happy with the lay out of the plan (great flexibility), but have just a few comments/questions.

Article 2.3, Can we make such a broad statement that is so biased toward the Company?

Article 3.1, I think the max payment is 56 weeks.

Article 5.2, Under failure to meet performance, can we reduce the 45 day period and reference oral notification as well as written notification?  One of my concerns is, if we notify someone that we accept their Voluntary application, but need them to work for the next 3-4 months, the employees' motivation level might be very low which will effect their performance level.  Or perhaps we can build a statement in to the Separation and Release Agreement stating that the completion of their transition of their role needs to be satisfactorily completed to receive the separation pay.

Also, somewhat related, do we expect to have the involuntary severance plan amended anytime this year?  As I'm working out the next stage of involuntary severance reductions, just need to know if the calculation is likely to change.

Thanks Michelle.

Cathy

Human Resources
Enron Metals & Commodity Corp.
520 Madison Ave., 28th Floor
New York, NY 10022
Tel: 212-715-5276
Fax: 212-715-5231
E-Mail: Catherine.Huynh@Enron.com

 -----Original Message-----
From: 	Cash, Michelle
Sent:	Thursday, October 18, 2001 1:57 PM
To:	Huynh, Catherine
Subject:	FW: Enron Metals North America Voluntary Separation

FYI, please let me know if you have any comments.  Michelle

 -----Original Message-----
From: 	FMackin@aol.com@ENRON
Sent:	Thursday, October 18, 2001 12:27 PM
To:	Palmer, Lizzette; Cash, Michelle
Subject:	Re: Enron Metals North America Voluntary Separation

Lizzette and Michelle,
Attached is a discussion draft of the plan document.  Please review and send to others who need or wish to review it.  I have designed flexibility into the Plan that should serve us well in the event of design changes.
Please share your comments with me or let me know if you have any questions.
Pat

 - Enron Metals US Vol Term Plan Doc1.doc << File: Enron Metals US Vol Term Plan Doc1.doc >>


---------------------- Forwarded by Mike McConnell/HOU/ECT on 10/19/2000
06:21 PM ---------------------------

Kevin Kuykendall
10/17/2000 02:07 PM
To: Patrick Wade/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, Jay
Fitzgerald/NY/ECT@ECT
cc:
Subject: Fwd: Texas.jpg

Gentlemen,

I thought that all good Sooners would enjoy this.  If you know of others that
I've left out, please forward it on.

Thanks,
KK
---------------------- Forwarded by Kevin Kuykendall/HOU/ECT on 10/17/2000
03:03 PM ---------------------------

John Petersen <jdpetersen@yahoo.com> on 10/16/2000 09:01:54 AM
To: jdpetersen@yahoo.com
cc: Bill Stewart <bipastew@oklahoma.net>, Myrna Pontious
<mkpontious@yahoo.com>, Kevin Kuykendall <kkuyken@ect.enron.com>, Kevin
<rev_kev@peakonline.com>

Subject: Fwd: Texas.jpg

Let's hear it  for OU.

?
 - Texas.jpg


----- Forwarded by Sara Shackleton/HOU/ECT on 11/22/2000 03:38 PM -----

	"Wolf Camera" <phototalk@shopwolfcamera.com>
	11/22/2000 11:27 AM

		 To: <sara.shackleton@enron.com>
		 cc:
		 Subject: Wolf Camera PhotoTalk - Vol. 1 Issue 5

Big news from WolfCamera.com. To read this newsletter online go to
http://www.wolfcamera.com/newsletters/.
?  Wolf Camera's Newsletter for the Holidays - VOL. I Issue 5
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That sounds fine.

I haven't recieved any further mail for you from Shell.  I think you said
there should be more coming.

	From:  Lisa Nemec                           03/07/2000 04:30 PM

To: Gerald Nemec/HOU/ECT@ECT
cc:
Subject: Re:

How about meeting for happy hour at State Bar after work around 6, we can
play the rest by ear.......

Gerald Nemec
03/07/2000 04:19 PM
To: Lisa Nemec/HOU/ECT@ECT
cc:
Subject: Re:

Sure.  Let me know when and where.

	From:  Lisa Nemec                           03/07/2000 01:28 PM

To: Gerald Nemec/HOU/ECT@ECT
cc:
Subject:

Hi - Would you like to have dinner next week?  Maybe Thursday?  It's Chris'
spring break and I told her I'd help her start packing since she moves out at
the end of the month.  She'll be leaving Thursday afternoon to go to work so
I won't be needing to help her Thursday night.  Just let me know if you are
interested.

Lisa


Please submit...

adr

Audrey D. Robertson
Transwestern Pipeline Company
email address:  audrey.robertson@enron.com
(713) 853-5849
(713) 646-2551 Fax


Hi Karen,

I'm in agreement with Tana's message below. I understand that the Trader /
Requester
applied to EOL as International Paper Corporation, however, after further
investigation,
DnB supports that the location of this company is actually a Branch location
of International Paper Company, CP/ID 1836 - - already an EOL counterparty.

Please confirm and advise.

Please contact Bernice Rodriguez if an inactivation of this Branch record is
in order.

Bernice, if an inactivation occurs, would you adjust the spreadsheet above on
the O: drive
and resend it to our EOL distribution as an EOL 03-07-01 Amendment.

Thanks !!

Samuel x3-9890
(GCP_Enron Networks)

---------------------- Forwarded by Samuel Schott/HOU/ECT on 03/16/2001 11:10
PM ---------------------------
From: Tana Jones on 03/15/2001 06:23 PM
To: Samuel Schott/HOU/ECT@ECT
cc:
Subject: International Paper Corporation

The above counterparty on the 3/7/01 list is ID#93394.  We had a counterparty
on the pre-approval list that was called International Paper Company and was
ID#1836.  Was that one in error?  Are they the same, different?  What's the
scoop?

Thanks for your help!


On Friday the Commission issued an order suspending (until October 15, 2000)
TW's tariff sheets for acquiring PNM capacity, and calling for a technical
conference.  The Commission stated that while TW's proposal may be in the
public interest, further investigation of the issues, including those raised
by Dynegy in its protest, is necessary prior to authorization.  The order
does not make clear what issues are to be investigated, but they seem to
include:  whether TW will, in effect, become a marketer for PNM's services,
whether the rates are just and reasonable and whether there is any expansion
of monopoly power.  Additionally, the Commission noted that while PNM has
certificate (i.e., public convenience & necessity) authority to transport gas
in interstate commerce, PNM will "have to either explain how it has
appropriate rate authority for transportation of natural gas in interstate
commerce, or seek appropriate rate authority from the Commission."   Lorraine
has forwarded a copy of the order to PNM so that they can begin taking the
appropriate steps.

I will talk with regulatory about technical conference dates and will tell
you when I have further information.  If you would like a copy of the order,
let me know.


Please see the attached draft letter response to Sen. Murkowski's recent correspondence to Ken.

The use of "premature at this time" signals that we have really not studied the legislative proposals, which is true.

Murkowski is keen to preserve ANGTA and keep new enabling legislation off the agenda.

If you are satisfied with this response, I will prepare an original for signature.

 -----Original Message-----
From: 	Hartsoe, Joe
Sent:	Monday, October 22, 2001 3:12 PM
To:	Fossum, Drew; Gadd, Eric; Shortridge, Pat; Bagot, Nancy
Subject:	RE: Dr. Lay response to Seantor Murkowski

Folks, Here are the comments that I recieved.  Please let me know if you have other suggested changes.  Thanks, Joe

 -----Original Message-----
From: 	Fossum, Drew
Sent:	Monday, October 22, 2001 11:36 AM
To:	Hartsoe, Joe; Gadd, Eric; Shortridge, Pat; Bagot, Nancy
Subject:	RE: Dr. Lay response to Seantor Murkowski

I like it--and have attached a draft with a couple of minor edits.  Thanks Joe.  DF

 << File: Dear Senator102201Red.doc >>

 -----Original Message-----
From: 	Hartsoe, Joe
Sent:	Monday, October 22, 2001 11:06 AM
To:	Gadd, Eric; Fossum, Drew; Hartsoe, Joe; Shortridge, Pat; Bagot, Nancy
Subject:	Dr. Lay response to Seantor Murkowski
Importance:	High

Folks,
	Your thoughts, comments and changes would be appreciated.  Call if you would like to discuss.  Thanks, Joe

 << File: Dear Senator102201.doc >>


You'll handle?
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 04/04/2000
09:58 AM ---------------------------

Susan Flynn
04/04/2000 08:35 AM
To: Sara Shackleton/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT, Tana
Jones/HOU/ECT@ECT
cc:
Subject: Confirmation mark-ups - BP Amoco and Aquila Canada Corp.

 Please review message below and advise.   Thanks!

---------------------- Forwarded by Susan Flynn/HOU/ECT on 04/04/2000 08:33
AM ---------------------------

	From:  Larry Joe Hunter                           04/03/2000 05:37 PM

To: Susan Flynn/HOU/ECT@ECT
cc: David Dupre/HOU/ECT@ECT, Kevin Meredith/Corp/Enron@ENRON, Jefferson D
Sorenson/HOU/ECT@ECT
Subject: Confirmation mark-ups - BP Amoco and Aquila Canada Corp.

Susan,

Can you forward this to the appropriate legal person:

BP Amoco Corporation - still marks up Annex A, Setoff paragraph so that the
word "derivative" is added (see attached - change in red, Section 5) We have
recieved prior approval to "Execute" the EOL deals in which this change is
made, but not the non-EOL deals.  Is this still correct?

Aquila Canada Corp. - marks up Annex A as attached (see markups in red)  (All
are EOL deals)


Slow browser may need to wait 15 seconds for your email to appear, then scroll to view.
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to unsubscribe enerfaxdaily as: plucci@ect.enron.com forward to web@enerfax.com

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version, please subscribe to the free text version by writing subscribe@enerfax.com
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Here are some comments.  Do we want to incorporate any at this point.  i
think we have addressed most of his issues.  At a minimum Tana could you send
Justin the latest copy.
---------------------- Forwarded by Bob Shults/HOU/ECT on 01/16/2001 02:38 PM
---------------------------

Justin Boyd
01/11/2001 09:47 AM
To: Bob Shults/HOU/ECT@ECT
cc: Amita Gosalia/LON/ECT@ECT, Ian Brungs/EU/Enron@Enron
Subject: EOL Broker Agreement

Bob

Sorry I wasn't able to respond to you last week re: the above, but the French
Alps beckoned!

I attach a mark up with my minor comments.

Justin


---------------------- Forwarded by Eric Bass/HOU/ECT on 03/08/2001 02:44 PM
---------------------------

"K. Bass" <daphneco64@bigplanet.com> on 03/08/2001 08:52:28 AM
Please respond to "K. Bass" <daphneco64@bigplanet.com>
To: Eric Bass <Eric.Bass@enron.com>
cc:
Subject: Concierge.com St. Thomas Overview

?

?http://www.concierge.com/run/concierge/OverviewDetail?geo_uid=287
 - Concierge.com St. Thomas Overview.url


Sent to David Hensel, Director of West Marketing for EES.  He will probobly delegate it.  Let me know if you need anything else.

Thanks,

Kim

-----Original Message-----
From: Burnham, Steven
Sent: Friday, October 12, 2001 12:41 PM
To: Ward, Kim S (Houston)
Subject: FW: California Contact

Kim, this is in regards to my conversation with Barry T.  I don't have much additional information other than the volume is <100 MM/day.  My number is 416-865-3712 if you have any questions. Cheers,

Steve Burnham
-----Original Message-----
From: Pamela_Edwards@dom.com [mailto:Pamela_Edwards@dom.com]
Sent: October 12, 2001 1:28 PM
To: Burnham, Steven
Subject: California Contact

In regards to our phone conversation, I appreciate your assistance in locating a
contact for gas supply with Enron for California.  My phone number is (804)
819-2972.  You can either email me or call.  Thanks.

Pam


You have received this email because you are listed as a security approver. Please click http://itcapps.corp.enron.com/srrs/auth/emailLink.asp?ID=000000000081288&Page=Approval to review and act upon this request.

Request ID          : 000000000081288
Request Create Date : 1/18/02 2:30:40 PM
Requested For       : jo.williams@enron.com
Resource Name       : ICE - External Intercontinental Exchange US Natural Gas
Resource Type       : Applications


Bill,

  I need a copy of your PMA's for May, June, and July (or whatever document you have from Risk) that is showing improper debits and credits to your book.  I have an appointment with Risk at 2 pm and I will try to get this all sorted out today, but I need to know exactly what you're seeing.

Virginia


Sara,

I left Janine a phone message but didn't get to talk with her.  I can make
this time work.

Best regards,
Susan

---------------------- Forwarded by Susan Musch/ENRON_DEVELOPMENT on
02/22/2001 02:31 PM ---------------------------

Janine Juggins@ECT
02/22/2001 11:35 AM
To: Sara Shackleton/HOU/ECT@ECT
cc: Robert Bruce/NA/Enron@Enron, Guenther Klar/LON/ECT@ECT, Susan
Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Meeting in Houston

Slight amendment to your proposal:

(1) Credit Tuesday 27th at 10 am
(2) Softs Tuesday 27th at 11 am

Already have a meeting scheduled at 9am that day. Will this work for you ?
Thanks
Janine

From: Sara Shackleton on 22/02/2001 10:08 CST
To: Janine Juggins/LON/ECT@ECT
cc: Robert Bruce/NA/Enron@Enron, Guenther Klar/LON/ECT@ECT, Susan
Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Meeting in Houston

Janine:  I would like to meet with you (and Guenther) regarding two topics:

(1)  softs trading (together with Bob Bruce)

(2)  credit trading (do we need anyone else?)

Either of Tuesday or Friday morning works fine.  Let me propose 9 am Tuesday
for softs and 10 am for credit (and I am flexible).  Bob and I are located
only several offices apart on the 38th floor of the Enron building.

We look forward to hearing from you.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Hey there stranger:
By the looks of your attire (very nice), and the pace of you walk the other
night, looks like you're back in the working groove.  Hope work is fun and
your classes are good.  I'm trying to get used to the "no life" thing again.
And you slacked on the happy hour.

Best,
Jeff


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AT&T CORP  21.850

BASKING RIDGE, N.J., Apr 18, 2001 /PRNewswire via COMTEX/ -- AT&T (NYSE: T)
announced today that Best Buy Co., Inc. (NYSE: BBY), the nation's number one
specialty retailer of consumer electronics, personal computers, entertainment
software and appliances, has signed a three-year, multi-million do

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Mark, The word on the street is that the NewPower folks are getting further in trouble (ie) strange trading activity, etc. Looks and smells a little like the old EES.

Couple of opps:
	- get another shareholder on-side and demand an Enron led audit to confirm financial and operating health;
	- followed up by hostile exit of mgt team if significant issues arise.

Issues:
	- obviously pushes us into another level of complicity/fiduciary in a blow up or bankruptcy not unlike the issues we faced with Kafus et al; however, given our continued interest a significant control issue could result in a significant acceleration of a write-off of our existing position plus any outstanding credit.

I would recommend we force the management team to submit to a detailed audit as a part of a united shareholder iniative - Lets discuss.

Rick Buy, what is our current credit position?

Greg/John, do you have a view on this one?

Rick Causey, we  probably need a more "permanent solution" ot the NewPower issue.

Regards
Delainey


I am interested in moving to the Enron Center or if nothing is available to Allen Center.  I work in Enron Center South and my company number is 0413 and my cost center is RC 107313.

Regards,

Jonathan McKay

 -----Original Message-----
From: 	Parking & Transportation
Sent:	Friday, January 11, 2002 9:16 AM
To:	Korkmas, Deb; Korpi, Kevin; Krenz, William; Larson, Bradford; LeDuc, John; Linardi, Jose; Lindberg, Susan; Linhart, Joe; Linnell, Elizabeth; Lobdell, Frank; Lord, Randy; Love, Chris; Lowry, Jennifer ; Luu, Duong; Makiya, Khalid; Maldonado, Sandra; Mane, Shilpa; Margoliner, George; Mason, Eric; Mathews, Greg; McCain, Ginger; McCarroll, Zachary; McConnell, Mark; McEvoy, Christine; Mckay, Jonathan; McPherson, John; Meerbott, Trey; Melendrez, Jesus; Mendez, Adriana; Mertins, Holly; Meurer, Keith; Millar, John; Miller, Stephanie; Miralles, Albert; Mitchell, Russell; Modi, Rishi
Subject:	Parking

Good Evening,

	The purpose of this e-mail is to inform you that a mandatory move from your current parking location is required due to the expiration of Enron's parking contract with the Metropolitan Garage as of 1/31/01.

	The Parking & Transportation Dept. is offering alternative parking in the Allen Center Garage for $94 per month. In order for us to make this a smooth transition for you, we are asking that you respond as soon as possible, however, all parking changes must be made via e-mail, no later than 1/18/01. The Allen Center spaces will be on a first come - first serve basis. If you have any questions you can contact Parking & Transportation at x3-7060.


---------------------- Forwarded by Tana Jones/HOU/ECT on 01/10/2000 05:48 PM
---------------------------

Molly Harris
01/10/2000 05:48 PM
To: Frank L Davis/HOU/ECT@ECT, Karen Lambert/HOU/ECT@ECT, Tana
Jones/HOU/ECT@ECT, Samuel Schott/HOU/ECT@ECT
cc: Bob Shults/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Bernice
Rodriguez/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Debbie
R Brackett/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Brian
Hunter-Lindsay/LON/ECT@ECT, Ian Sloman/LON/ECT@ECT, Coenraad
Basson/LON/ECT@ECT, Bhautik Patel/LON/ECT@ECT, David Hardy/LON/ECT@ECT, David
Weekes/LON/ECT@ECT, Sylvia A Campos/HOU/ECT@ECT, Carrie Southard/HOU/ECT@ECT,
Lisa Gillette/HOU/ECT@ECT
Subject: EOL Credit Responses 1/10

Please find attached Credit's EOL responses for 1/10/00.  Please note a new
form was utilized effective today that has consolidated the US Coal Physical
and US Paper Financial products.

Regards
Molly


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SIVY ON STOCKS from money.com
December 13, 2000

How now, Mad Cow

A slowing economy, unfavorable exchange rates and new fears about Mad Cow
disease are all taking a toll on McDonald's. What better reason for a
contrarian to buy.

By Michael Sivy

For a decade, McDonald's stock set a record high every single year. Then in
1999, the stock peaked just short of $50 a share -- and it's been downhill
ever since. McDonald's hit a low of less than $27 in September, and the
share price has recovered by only $4 since then. The global hamburger chain
still appears to face a spate of problems, but many contrarian-minded
analysts see a great buying opportunity.

With 28,000 outlets in 120 countries, McDonald's gets about half its sales
and operating profits outside of North America. Overall earnings were able
to expand at an 11.5 percent compound annual rate through most of the 1990s
because double-digit growth internationally gave a huge boost to
single-digit gains in the United States. But the global growth engine began
to falter with the Asian financial crisis in 1998.

Since then, overseas results have been penalized by unfavorable exchange
rates, particularly the weak euro, which erodes the value of profits earned
in much of Europe. This year, for instance, foreign exchange losses could
clip nearly 5 percent from McDonald's net income. Recently, however, an
even bigger problem has emerged in Europe: the resurgence of Mad Cow disease.

Various forms of brain disease have long occurred spontaneously in both
animals and humans. But adding the remnants of slaughtered animals to
cattle feed -- a practice that used to be widespread in the U.K. -- appears
to have spread some form of the disease more widely in that country.
Recently, however, infected cows have also been identified on the
Continent, leading to fears about the safety of European beef. Analysts
believe that could lead to a temporary drop in the consumption of
McDonald's hamburgers. Indeed, the company's European sales were off 11
percent in November.

It's scary, but it's also hard to believe that there will be any
significant damage to McDonald's long-term results. The use of animal
remains in feed is heavily restricted today, and there is little evidence
that the practices that promoted Mad Cow were ever significant outside of
the U.K.

Moreover, because of quality concerns, McDonald's has always been highly
selective about its suppliers. So the beef it buys is likely to conform to
the highest local safety standards. And to the extent that sales of beef
are hurt in continental Europe, McDonald's can promote alternative
products, as it already does in countries where local customs discourage
beef consumption.

Once the Mad Cow scare dies down, currency exchange trends should also help
the stock. After declining in value for nearly two years, the euro could
rebound by 10 percent or more over the next 12 months, according to
forecasters. McDonald's will open some 1,800 new outlets this year -- 200
in the U.S. and the rest in foreign markets. And store growth in 2001 is
projected to be roughly the same. Over the next five years, earnings per
share could rise nearly 12 percent annually.

The stock, which is both a growth favorite and a popular defensive choice
(suitable now that tech is in trouble), has traded at P/Es in the mid-20s
over the past few years. At a current $31, though, shares go for less than
20 times next year's estimated earnings of at least $1.60 a share. Based on
expected earnings growth and a modest P/E increase as recent bad news
abates, analysts see the stock reaching $42 or more before the end of 2001.

=============================
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Not to get too technical, but most stocks sucked in 2000. Yet
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=============================

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I received the navidad.exe virus through four e-mails from Gwen Soong this
morning.  My firewall rejected the attachments and so advised me.

Bob Gloistein.
Orrick, Herrington & Sutcliffe.

-----Original Message-----
From: Cinderella [mailto:christa@crossborderenergy.com]
Sent: Tuesday, December 12, 2000 10:46 AM
To: skatz@sempratrading.com; kmccrea@sablaw.com; thompson@wrightlaw.com;
John Jimison; sscott3@enron.com; trdill@westernhubs.com;
ghinners@reliantenergy.com; tdickers@westerngas.com;
mark.c.moench@wgp.twc.com; andy.bettwy@swgas.com; johnwalley@swgas.com;
napedersen@jonesday.com; rpetti@ladwp.com; eklinkner@ci.pasadena.ca.us;
slins@ci.glendale.ca.us; bjeider@ci.burbank.ca.us;
roger.pelote@williams.com; porterdk@sce.com; inggm@sce.com; burkee@cts.com;
jleslie@luce.com; gsullivan@sempra.com; jsteffen@iid.com;
haorndorff@aeraenergy.com; kbhensman@aeraenergy.com;
mdjoseph@adamsbroadwell.com; marcel@turn.org; edf@cpuc.ca.gov;
mcn@cpuc.ca.gov; plg@cpuc.ca.gov; joseh@lif.org; chrisw@greenlining.org;
ewo@jmbm.com; evk1@pge.com; epoole@adplaw.com; bcragg@gmssr.com;
chj@aelaw.com; chilen@llgm.com; eke@aelaw.com; jmct@gmssr.com;
jkarp@whitecase.com; lindseyhowdowning@dwt.com;
rick.counihan@greenmountain.com; mday@gmssr.com;
grant_kolling@cerberus.city.palo-alto.ca.us;
raveen_maan@cerberus.city.palo-alto.ca.us; rochmanm@cubjpa.org;
jcattermole@pcenergy.com; igsinc@ix.netcom.com; craigc@calpine.com;
gtbl@dynegy.com; joe.paul@dynegy.com; kfyip@seiworldwide.com;
davef@abag.ca.gov; garyb@abag.ca.gov; ceyap@earthlink.net;
askaff@energy-law-group.com; pjpowerlaw@aol.com; tomb@crossborderenergy.com;
jweil@aglet.org; dcarroll@dbsr.com; ed@clfp.com; iep@iepa.com;
lmh@eslawfirm.com; jtachera@energy.state.ca.us; kmills@cfbf.com;
ron_oechsler@rmiinc.com; alan_reid@pcp.ca; rfoss@coral-energy.com;
tom.roth@et.pge.com; ronknecht@aol.com; furutanj@efawest.navfac.navy.mil;
aod@newsdata.com; rgloistein@orrick.com; salleyoo@dwt.com; rbw@mrwassoc.com;
chris.king@utility.com; rczahar@aol.com; stomashe@energy.state.ca.us;
karen@klindh.com; mer@cpuc.ca.gov; jwr@cpuc.ca.gov; eyq@cpuc.ca.gov;
jsw@cpuc.ca.gov; ltt@cpuc.ca.gov; ram@cpuc.ca.gov; rmp@cpuc.ca.gov;
raw@cpuc.ca.gov; sbs@cpuc.ca.gov; tah@cpuc.ca.gov; vjb@cpuc.ca.gov;
mjaske@energy.state.ca.us; bwood@energy.state.ca.us
Subject: Tom Beach may have sent you a virus

Tom Beach received the navidad virus in e-mail yesterday, and it replicated
itself and went out to many (maybe all) of the people who had sent him
e-mail that he had not yet opened (i.e., unopened mail in his Outlook
Express in-box).

Because the OII and peaking rate filings were yesterday, you probably sent
Tom e-mail that he didn't have a chance to look at.  If you have a firewall
system that rejects any e-mail with executable files attached, you're safe.
If you don't, here is the URL with the virus cure:

http://www.fsecure.com/v-descs/navidad.htm
<http://www.fsecure.com/v-descs/navidad.htm>

In Tom's system, I was able to ignore the error message about the machine
not being able to find "winsvrc.exe," open his Internet browser, and
download the virus repair file from this Web site.  It's a relatively easy
fix once that's done.

I'm terribly sorry about this.  Let me know if I can be of further
assistance.

Christa Goldblatt
Office Manager
Crossborder Energy
christag@crossborderenergy.com <mailto:christag@crossborderenergy.com>
510-649-9790
Every revolution evaporates and leaves behind only the slime of a new
bureaucracy. -- Franz Kafka

NOTICE TO RECIPIENT:  THIS E-MAIL IS  MEANT FOR ONLY THE INTENDED RECIPIENT
OF THE TRANSMISSION, AND MAY BE A COMMUNICATION PRIVILEGED BY LAW.  IF YOU
RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION,
OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED.  PLEASE NOTIFY US
IMMEDIATELY OF THE ERROR BY RETURN E-MAIL AND PLEASE DELETE THIS MESSAGE FROM
YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.


Attached are the Transaction Agreement and Master Firm Purchase/Sale
Agreement for JM Huber.

Revisions are as follows:
No changes were made to the Transaction Agreement.  However,  on page two the
sixth line in the section "Condition Precedent" please fill in the correct
date and have Huber initial.

Concerning the Master: Page1-3; Line 7 beginning with "Customer" [or its
Guarantor] has been deleted.  On the signature page "JW" has been changed to
J.M.  In Appendix 1: "EBITDA Coverage Ratio" has been deleted and  "Net
Income" has been moved and placed in alpha order.  Finally, please fill in
the name of the state in the blank on the first page in the first paragraph.

For execution:  print two of each  document and have Huber sign and return
same to my attention.  I will forward a set of originals for their records
upon final execution.

Please give me a call if you have any questions.

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


You need to begin thinking about what we could do here if we were asked to reduce staffing to save money?

 -----Original Message-----
From: 	Brassfield, Morris
Sent:	Monday, November 19, 2001 10:19 AM
To:	Hayslett, Rod
Cc:	Frausto, Ruthann
Subject:	FW: Need approval for phone moves

These phone moves are for positions we asked for approval for last week.

Thanks,

Morris

 -----Original Message-----
From: 	Frausto, Ruthann
Sent:	Friday, November 16, 2001 2:55 PM
To:	Brassfield, Morris
Cc:	Daily, Pamela
Subject:	Need approval for phone moves

LeShawn Edwards, currently a contractor in Elaine Concklin's accounting group, has accepted a position with Barney Brasher to fill the position vacated by Vera Jones, and Elaine has hired another contractor to backfill the position LeShawn is leaving.

I need your approval to switch the telephones:

LeShawn's phone from 3AC3321 to her new location at 3AC3336
Vera Jones' old phone from 3AC3336 to 3AC3321 & reassign to new contractor

If you approve, please forward to Rod Hayslett for his approval as well.

Thank you.

Ruthann
x66538


Hi!  Saw some clear glass votive holders on a long stem at Smith-Hawken the
other day that I thought might be different on the table for the holidays.
Don't know if they're in the catalog and don't know how much they are.

Am looking at some fireplace tools that Breed sells by the piece.  Interested
in tongs, poker, shovel.  But don't know if I want them on a stand or not,
and that gets pricey.  Also need a new bellows.

Breed also has a leather and metal log holder that's nice looking--but that
also may be pricey.

Always jewelry.

A red muffler to wear with my black jacket for the slopes--saw a man's at
Banana Republic.

More ideas later.     love, mum


---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 08/04/2000
01:56 PM ---------------------------

"Piazze, Thomas" <piazzet@wharton.upenn.edu> on 08/04/2000 01:50:31 PM
To: "'shankman, jeff'" <Jeffrey.A.Shankman@enron.com>
cc:
Subject: FW: Final revised document. Thanks.

Jeff:  Good talking with you earlier this week and happy to hear that your
conversation with Jeff Skilling was such a positive one.  I am looking
forward to working with you, Vince and Mark Palmer in the near future to put
in place a comprehensive plan to maximize the Enron/Wharton relationship in a
number of different areas.  I also know that a number of the faculty will be
extremely pleased to learn of this news and will be quick to get the ball
rolling.

As promised, I am forwarding a document outlining all on campus sponsorship
opportunities, minus the Student Business Plan Competition, for the upcoming
School year.  Please review and pass it on the Celeste Roberts, for whom I do
not have an accurate e-mail address.  There are a number of student
conferences that you may wish to consider participating in as a means for
getting the Enron name in front of them.  Please don't hesitate to contact me
with any questions you may have or requests for additional information.

I will also contact the Career Management Office and ask that they call
Celeste to discuss career orientation panel sessions.  I know that you must
plan your schedule well in advance and will do my best to facilitate that
process.

Thanks again for all you are doing to bring our two institutions together.
It is important and makes a big difference.

Look forward to hearing from you soon.

TOM

-----Original Message-----
From: Henley, Nadina
Sent: Friday, July 28, 2000 9:54 AM
To: Piazze, Thomas
Subject: Final revised document. Thanks.

 <<OPPORTUNITIES.doc>>

 - OPPORTUNITIES.doc


At the request of Mark Greenberg, I am attaching a clean and blacklined copy
of the Amendment to the Electronic Trading Agreeement, marked to show changes
from the amendment we executed with BP Exploration and Oil Inc.  If this
amendment meets with your approval please let me know and I will start
processing it for signature.  My number is (713) 853-3399.