Enron May Issue More Stock to Cover Obligations
The Wall Street Journal, 10/24/01
Enron Tries To Dismiss Finance Doubts
The New York Times, 10/24/01
Surge in Optimism Prompts Straddles In Enron and Cisco
The Wall Street Journal, 10/24/01
Lay tries to assure Enron investors
Houston Chronicle, 10/24/01
OBSERVER - Busy signal.
Financial Times (U.K. edition), 10/24/01
USA: Enron mulls ways to cover portfolio shortfalls-WSJ.
Reuters English News Service, 10/24/01
Enron May Issue More Stock to Cover Obligations
Dow Jones Business News, 10/24/01
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Los Angeles Times, 10/24/01
United States
The Globe and Mail, 10/24/01
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
The Wall Street Journal, 10/24/01
U.S. Energy Giant Weighs a Move To Pull Out of India
The Asian Wall Street Journal, 10/24/01
UK: LNG delays could spawn shipping crisis - analysts.
Reuters English News Service, 10/24/01
INDIA PRESS:British Gas Seeks ONGC Deal For Field Control
Dow Jones International News, 10/24/01
BG Offers ONGC Brazilian Assets to Get Managing Rights in India
Bloomberg, 10/24/01

House stimulus bill would give billions to huge companies; Senate Democrats present alternative
Associated Press Newswires, 10/23/01
Wechsler Harwood Halebian & Feffer LLP Announces Class Periods
PR Newswire, 10/23/01
Stock Analysis/Call In
CNNfn: Markets Impact, 10/23/01

Economy
Enron May Issue More Stock to Cover Obligations
By Rebecca Smith and John R. Emshwiller
Staff Reporters of The Wall Street Journal

10/24/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created. Covering such shortfalls could involve issuing additional Enron shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
During the past week, shares of the energy-trading giant have dropped more than 40%. Early last week, Enron reported a $618 million third-quarter loss, resulting from $1.01 billion in write-offs. The company also disclosed a $1.2 billion reduction in shareholder equity for the quarter as a result of terminating certain transactions related to a partnership that for a time was headed by Enron Chief Financial Officer Andrew S. Fastow. In July, Mr. Fastow ended his connection to the partnership in the face of growing concerns by analysts and major investors. On Monday, Enron disclosed that the Securities and Exchange Commission was looking into the transactions related to Mr. Fastow. Enron has said its dealings with the partnership were proper.
The turmoil of the past several days prompted Enron to schedule a conference call yesterday morning with Wall Street analysts and others in an effort to reassure investors. Enron Chairman and Chief Executive Kenneth Lay said while "we are extremely disappointed with our stock price . . . our businesses are performing very well." Mr. Lay and other executives said Enron has adequate liquidity to meet its needs.
Mr. Fastow, the chief financial officer, took part in the conference call. But neither he nor Mr. Lay would answer any questions concerning the Fastow-related partnership, which was known as LJM2 Co-Investment LP. Mr. Lay said the SEC was in the midst of an inquiry concerning that partnership arrangement, which has raised conflict-of-interest questions among analysts and others. Mr. Lay cited shareholder suits filed recently as another reason not to discuss the partnership questions. Mr. Lay said he was "very concerned about the way Andy's character has been loosely tossed about." He added "we continue to have the highest faith and confidence in Andy."
Internal LJM2 documents indicate that Mr. Fastow and perhaps a handful of fellow Enron officials made millions of dollars in management fees and capital increases from running the partnership. Billions of dollars of Enron assets and stock were involved in LJM2-related transactions, according to Enron SEC filings.
During the conference call, analysts -- even some who have been longtime Enron fans -- challenged executives about the Fastow partnership arrangement and the company's often opaque financial reports. "There's the appearance you are hiding something," said Goldman Sachs analyst David Fleischer. "You need to do everything in your power to demonstrate to investors that your dealings are above board."
Mr. Lay responded, "We're trying to be as transparent as we can."

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

Business/Financial Desk; Section C
Enron Tries To Dismiss Finance Doubts
By FLOYD NORRIS

10/24/2001
The New York Times
Page 1, Column 5
c. 2001 New York Times Company

Enron has ample access to cash, the company's chief executive said yesterday as he assured investors that there was no need for additional write-offs stemming from unusual financing activities.
In a conference call with investors that was hastily scheduled after Enron's stock plunged on Monday, the chief executive, Kenneth W. Lay, strongly defended the company's chief financial officer and said there was no conflict of interest involved in transactions that the Securities and Exchange Commission was looking into.
But he refused to go into detail on the transaction that Enron made with partnerships run by Andrew S. Fastow, the chief financial officer. In addition, Mr. Fastow, while declaring that Enron ''expects to continue to have sufficient liquidity to meet normal obligations,'' declined to answer any questions about it.
The conference call, which began just as trading opened on the New York Stock Exchange, at first seemed to be reassuring investors. Within minutes of the beginning of the call, the share price rallied to $23.25. But it soon began falling, and ended the day down 86 cents, at $19.79. The day's low of $19.62 was the lowest since Jan. 12, 1998, and was down 78 percent from the high set by the stock in the summer of 2000.
Until recently, most investors focused on the company's reported operating earnings, which showed good results as it became a leading player in energy markets. But the focus has shifted to a series of transactions, some involving off-balance-sheet financing. One, involving partnerships controlled by Mr. Fastow, led to a $1.2 billion reduction in shareholder equity that raised concern last week and led to S.E.C. inquiries that the company disclosed on Monday.
One of the company's strongest supporters has been David Fleischer, an analyst at Goldman, Sachs. But he told Mr. Lay on the call yesterday that Enron had to be more forthcoming with information. ''There is an appearance that you are hiding something,'' he said.
After the call, Mr. Fleischer expressed disappointment. ''They've engaged in a number of transactions that one wonders about, and that are hard to understand,'' he said in an interview. ''They have not been as forthcoming in explaining them'' as is needed, he said. But he said he was still recommending the stock. ''I don't think accountants and auditors would have allowed total shenanigans,'' he said. ''In the absence of total shenanigans going on at this company, there is tremendous value here.''
Mr. Lay cited the S.E.C. inquiries as a reason for not discussing details on the transactions involving the partnerships that were controlled by Mr. Fastow. But he emphasized that both he and the company's board ''continue to have the highest faith and confidence in Andy.''
Mr. Lay said that auditors from Arthur Andersen had carefully reviewed Enron's reporting in conjunction with another off-balance-sheet vehicle, called Marlin. That company owns one-third of Azurix, an Enron subsidiary that owns Wessex, a British water utility. The auditors ''have determined there is no write-down required,'' he said under questioning by Richard Grubman of Highfields Capital Management, a money management firm.
Mr. Grubman said that Marlin owed almost $1 billion on debt that was guaranteed by Enron but had no assets other than the Azurix stake. Noting that Enron had paid about $300 million to buy a third of Azurix from public shareholders and had since taken write-downs on its investment in Azurix, Mr. Grubman asked why the company was not setting up reserves to cover its exposure on that debt, which under a complicated arrangement could end up being satisfied through the issuance of Enron shares.
Mr. Lay said that no action was needed but declined to address details. Eventually he cut off Mr. Grubman. ''I know you're trying to drive the stock price down, and you've done a pretty good job of it,'' Mr. Lay said. ''But let's move on to the next question.''
Mr. Fastow said the company was having no problem issuing commercial paper and had $1.85 billion in such debt outstanding. He said it was backed by $3.35 billion in bank lines of credit, of which $1.75 billion will expire next May if it is not renewed.
Mr. Lay said he was sorry about ''the misunderstanding'' that resulted when his brief mention of the $1.2 billion reduction in shareholder equity in a conference call last week was not noticed by some analysts. That reduction would have been apparent if the company had released its balance sheet with the earnings report, but it did not. He said the company would consider releasing balance sheets with earnings reports in the future, but made no promises.
The large reduction in shareholder equity did not affect reported earnings, and so was not in the earnings release. But it raised concerns that some of the sophisticated financing techniques used by the company might be effectively keeping losses off the earnings statement. The S.E.C. is expected to look into whether the accounting for that transaction was correct.
After one questioner on the call said it would be easier to understand Enron if it released financial statements for the special purpose vehicles that were set up to enter into such transactions as Marlin, Mr. Lay said the company ''will look into providing'' such statements.

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

Options Report
Surge in Optimism Prompts Straddles In Enron and Cisco
By Kopin Tan
Dow Jones Newswires

10/24/2001
The Wall Street Journal
C14
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Bullish calls traded heavily early as investors, encouraged by the ability of stocks to shrug off anthrax scares, bought calls to replace stock holdings and to ride any rallies.
At one point, the ratio of equity calls traded to puts at the Chicago Board Options Exchange fell to 0.28, compared with 0.68 Friday and Monday's three-month closing low of 0.42.
The surge of optimism -- also evident in the CBOE market-volatility index, or VIX -- prompted traders to begin covering the downside, just as the widely watched stock indexes began to retreat. Contrarians believe the CBOE equity put/call ratio sends a bearish signal when it is below 0.40. By the session's end, the ratio was at 0.49.
Buyers drove robust call trading in Cisco Systems, a maker of Internet switching equipment, and the implied volatility also rose, noted a trader at Letco, the CBOE specialist for Cisco options. One investor bought thousands of January 20 calls, paying about $115 a contract for the right to buy 100 shares of the stock at $20 a share until mid-January. At 4 p.m. in Nasdaq Stock Market trading, Cisco was down 42 cents at $16.41. The January 20 calls fell 10 cents to 90 cents on CBOE volume of 27,048 contracts, while 6,861 contracts traded at the Pacific Exchange.
The implied volatility of Enron's near-month options remains high, even as the energy concern's executives sought to calm investors and address their concerns, following news that the Securities and Exchange Commission is looking at the Houston company.
The volatility spike makes Enron a viable candidate for investors looking to sell straddles -- selling calls and puts with the same strike price and expiration. In particular, Enron's at-the-money January 20 straddles offer rich premiums, said Lillian Seidman of the Seidman/Skupp options team at Miller Tabak & Co., of New York. With Enron down 86 cents at $19.79 in New York Stock Exchange composite trading, selling January 20 straddles would earn an investor about $750 a straddle -- a rich premium that could offset the cost of buying stock.
To be sure, selling straddles can be risky and the losses significant if the stock, which already had fallen about 38% in a week, makes a big move in either direction before the straddles expire. Investors typically buy straddles if they expect a big move in the underlying stock, while sellers pocket premium and hope the stock remains in a tight trading range.

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

Oct. 24, 2001, 12:05AM
Houston Chronicle
Lay tries to assure Enron investors
Company's credibility questioned
By LAURA GOLDBERG
Copyright 2001 Houston Chronicle
Enron had safeguards in place to protect shareholder interests while its chief financial officer ran two investment partnerships that did business with Enron, the company's chief executive officer said Tuesday.
The Houston-based energy trader has been caught in a storm of criticism over Chief Financial Officer Andrew Fastow's former role with two partnerships, LJM Cayman and LJM2 Co-Investment, that entered into complex financing and hedging arrangements with Enron.
Enron disclosed Monday that the Securities and Exchange Commission opened an "informal inquiry" into transactions between Enron and the two partnerships.
It declined to say if the SEC is looking into other transactions.
After the disclosure, Enron's stock fell almost 21 percent Monday. Tuesday it dropped another 86 cents to close at $19.79.
The news brought to the forefront ongoing complaints from some on Wall Street that some of Enron's financial mechanisms are difficult to understand and that Enron doesn't provide detailed enough financial data about its performance.
Tuesday morning, Enron Chairman and CEO Ken Lay held a conference call for investors and analysts, aimed at addressing their concerns.
It remains to be seen whether he succeeded, but based on the tenor of questions during the call, it's doubtful he achieved that result.
David Fleischer, a Goldman Sachs analyst, told Lay that the company's credibility was being severely questioned and called on him to do everything in his power to explain to investors that Enron's dealings are aboveboard.
"I, for one, find the disclosure is not complete enough for me to understand and explain all the intricacies of all those transactions," he said.
Lay told callers he was limited in speaking about the LJM partnerships because of the SEC inquiry.
He did say Enron was aware an "inherent conflict of interest" would result from its chief financial officer running investment partnerships doing business with Enron.
In response, Enron set up procedures, which Lay said were rigorously followed, to ensure shareholder interests wouldn't be compromised.
"There was a Chinese Wall between LJM and Enron," he said, adding that Enron wasn't obligated to do deals with the LJM entities and did so when it was in Enron's best interest.
Lay and Enron's board continue to have the "highest faith and confidence" in Fastow, he added.
Fastow resigned his roles with the LJM entities in June after criticism from Wall Street.
Enron ended its financial relationships with the partnerships.
It took a $35 million charge in the third quarter and reduced shareholders' equity by $1.2 billion as a result.
During the call Enron executives also addressed other issues.
They stressed that Enron expects to continue having sufficient liquidity to carry out normal operations and took questions about two financing vehicles, Whitewing and the Atlantic Water Trust, that it set up so it could invest in certain assets without issuing debt or Enron shares at the time of the investments.
If Enron should lose its current investment-grade quality debt rating, commitments made as part of those financing vehicles could trigger steps that would cause the value of Enron's current outstanding shares to become diluted.
Jeff Dietert, an analyst with Simmons & Co. International in Houston who follows Enron, was among those on the call. He said afterward he received some new information about Enron's lines of credit.
"I had hoped to get a little bit more out of the call," he said.

OBSERVER - Busy signal.

10/24/2001
Financial Times (U.K. edition)
(c) 2001 Financial Times Limited . All Rights Reserved

Busy signal
Enron should know plenty about bandwidth.
Through Enron Broadband Services, the giant energy company boasts about "developing an open and efficient market for bandwidth that provides liquidity, reliability, price transparency and guaranteed service levels".
But there were no guarantees about service levels yesterday, when Enron held a conference call to "address investor concerns" about its financial dealings.
Despite the bandwidth expertise, the call - the first time that Andrew Fastow, chief financial officer, has faced questions about the transactions from analysts - was available to just 300 lucky telephone diallers. A live webcast of the call was accessible on Enron's website, but without the chance to grill Enron brass.
Those investors and journalists who did make it through (some waited 20 minutes for their place at the party; others found their lines dropped mid-stream) heard volatile exchanges between analysts and company executives. An analyst chided for his part in lowering the company's share price was told by Ken Lay, Enron's chairman, that his question quota was up and it was time to move on.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

USA: Enron mulls ways to cover portfolio shortfalls-WSJ.

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 24 (Reuters) - Enron Corp. Treasurer Ben Glisan said the company thinks it can repay about $3.3 billion in notes sold by investment vehicles it created without having to issue more stock, the Wall Street Journal reported in its online edition on Wednesday.
Enron may need to come up with funds to cover potential shortfalls in those investment vehicles, which could involve issuing additional shares, thereby diluting the position of current shareholders, the report said.
The report, which cites a Tuesday interview with Glisan, said the notes were sold to investors during recent years by several entities and are coming due during the next 20 months. The entities are known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I Inc, the report said.
According to the report, Glisan said assets from those entities could be sold to pay off some of the notes. Enron is selling other assets, the report said. According to the newspaper, proceeds from those sales could go toward repaying the notes, which are ultimately guaranteed by Enron.
Glisan, according to the report, said it looks like asset sales will raise at least $2.2 billion by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Glisan said, according to the report. "But if we are wrong, we will issue equity."
According to the report, Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock.
Enron held a conference call on Tuesday, seeking to assuage investor concerns after U.S. regulators said they were looking into transactions involving the company's chief financial officer and its stock shed more than $10 billion in value over the past week.
Enron said on the call it can tap $3.35 billion from a credit line, suggesting it has enough liquidity to operate its core trading and marketing business, which can experience wide swings in cash flow, depending on commodity prices and market hedges.

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

Enron May Issue More Stock to Cover Obligations

10/24/2001
Dow Jones Business News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. might have to come up with several hundred million dollars or more during the next 20 months to cover potential shortfalls in investment vehicles it created, Wednesday's Wall Street Journal reported.
Covering such shortfalls could involve issuing additional Enron (ENE) shares, diluting the position of current shareholders.
However, Enron Treasurer Ben Glisan said in an interview yesterday that the company believes it can repay about $3.3 billion in notes that were sold by those investment vehicles without having to resort to issuing more stock. The notes were sold to investors during recent years by several entities -- known as the Marlin Water Trust II, the Marlin Water Capital Corp. II, the Osprey Trust and Osprey I, Inc. The notes are coming due during the next 20 months.
Mr. Glisan said assets from the entities could be sold to pay off some of the notes. Also, Enron is selling other assets. Proceeds from those transactions also could go toward repaying the notes, which ultimately are guaranteed by Enron.
He said it appears that asset sales will raise at least $2.2 billion by the end of next year. This amount includes cash proceeds of $1.55 billion from the previously announced sale of Enron's Portland General Electric utility unit. Enron hopes to complete that sale by the end of 2002.
"There are a number of other assets we believe will raise sufficient proceeds" to repay the notes, Mr. Glisan said. "But if we are wrong, we will issue equity." Mr. Glisan said a worst-case scenario would involve issuing as much as $1 billion in stock. Enron said it has about 850 million shares outstanding.
Making up any shortfall with equity has become more expensive because of the drop in Enron's share price. In 4 p.m. New York Stock Exchange composite trading, Enron shares were down 86 cents to $19.79. The stock was once again one of the most actively traded with about 27 million shares changing hands. Early this year, Enron stock was more than $80 a share.
Copyright (c) 2001 Dow Jones & Company, Inc.
All Rights Reserved.

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

Business; Financial Desk
IN BRIEF / ENERGY Enron Asks Citigroup for $750-Million Loan
Bloomberg News

10/24/2001
Los Angeles Times
Home Edition
C-2
Copyright 2001 / The Times Mirror Company

Enron Corp., the biggest energy trader, has asked Citigroup Inc. to arrange a $750-million loan, ensuring access to credit if the beleaguered company is cut off from money markets, say people familiar with the matter.
Enron's shares and bonds plunged after the firm said the Securities and Exchange Commission was probing its finances.
The Houston-based business, whose stock has fallen 75% this year amid concerns about failed investments, depends on a $3-billion commercial paper, or short-term debt, program to finance day-to-day operations.
As a second-tier commercial paper borrower, any ratings drop may cut off Enron from the commercial paper market and raise costs of short-term debt.
Enron shares dropped 86 cents to close at $19.79 on the New York Stock Exchange.

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

Report on Business: The Wall Street Journal
What's News
United States
Wall Street Journal

10/24/2001
The Globe and Mail
Metro
B9
"All material Copyright (c) Bell Globemedia Publishing Inc. and its licensors. All rights reserved."

Enron Corp. might have to come up with several hundred million dollars over the next 18 months to cover potential shortfalls in investment vehicles it created, treasurer Ben Glisan said. The possible shortfall related to about $3.2-billion (U.S.) in notes that related entities sold to investors since 1999, he said. Proceeds from those notes were invested in various Enron assets. Mr. Glisan said those notes come due over the next 18 months and Enron still hopes to sell enough assets to fully repay the notes. However, making up any shortfall with funds raised by selling stock has become more expensive as Enron's share price has plunged. Over the past week, shares of the energy trading giant have fallen more than 40 per cent.

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

Abreast of the Market
Everest Re, St. Paul and Providian Drop, but Markets Stay Resilient
By Robert O'Brien
Dow Jones Newswires

10/24/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Stocks ended only slightly lower as the recently resilient market largely withstood the effects of dismal corporate profit statements.
Shares of drug maker Pharmacia fell $4.37, or 13%, to $38.39, after the company issued third-quarter results that topped Wall Street's forecasts, but also issued 2002 profit projections that left some analysts disappointed.
In fact, several drug companies saw their stock prices fall as investors responded to their quarterly profit statements. Shares of Bristol-Myers Squibb, for example, gave up 1.68, or 2.8%, to 58.02, American Home Products lost 1.40, or 2.3%, to 58.90, and Schering-Plough eased 74 cents, or 1.9%, to 38.17.
Shares of several insurance and reinsurance providers also pulled back in reaction to profit statements, with Everest Re falling 6.40, or 8.4%, to 69.50, and St. Paul dropping 93 cents, or 1.9%, to 49.25.
Power utility Exelon, Chicago, was set back 3.42, or 7.7%, to 41.08, after its third-quarter results topped forecasts, but drew critical comments from several analysts.
Nevertheless, even with the grim earnings outlook, investors showed continued reluctance to throw in the towel.
"Institutional investors are busy trying to gauge the sentiment in the market," Richard Cripps, market strategist at Legg Mason, said. "Their fear is that the market makes a four or five percent upside run very quickly, which is eminently possible, and they can't afford to miss it."
Some seasonal factors also have played a role in supporting stock prices recently. For many mutual funds, for example, their fiscal year concludes at the end of October. Some are doing what is called window dressing -- buying stocks that their investment disciplines say should be in their portfolio -- while others need to boost their overall exposure to the equities market.
Whatever the reason, the market has been making some big moves when prices have risen, and modest moves when they have declined. The Dow Jones Industrial Average, which ran up 172.92 points Monday, declined 36.95 points yesterday, a loss of 0.39%, to 9340.08.
The Nasdaq Composite Index declined 3.64 points, or 0.21%, to 1704.44. Volume levels showed some improvement over Monday's rather sluggish pace.
Investors haven't completely rolled over. In a handful of the situations in which their ire has been raised, they have lashed those stocks repeatedly. Shares of SBC Communications, one of Monday's disappointments, got punished again, falling 2.62, or 6.3%, to 38.78, and fell back in range of a 52-week low of 38.20, set June 26.
Consumer lender Providian Financial got sent to a fresh 52-week low, off 41 cents, or 8.3%, to 4.55. Enron, which has fallen on concerns about conflicts of interest in dealings among the company, a power marketer, and partnerships that were set up and run by its chief financial officer, dropped an additional 86 cents, or 4.2%, to 19.79, hitting a 52-week low intraday.
There were some winning profit statements. Shares of CSX, for example, rose 2.45, or 7.5%, to 35.19, after the Richmond, Va., rail-freight concern reported third-quarter earnings that, while they fell short of year-ago performance, nevertheless managed to top Wall Street's forecasts.
Vitesse Semiconductor (Nasdaq), a Camarillo, Calif., maker of integrated circuits used in high-bandwidth communications networks, added 43 cents, or 4.5%, to 9.99, even though the company's losses for its fiscal fourth quarter proved sharper than expected.
NetIQ (Nasdaq) dropped 4.23, or 14%, to 26.17, even though the Santa Clara, Calif., developer of networking software posted fiscal first-quarter results late Monday that topped what analysts had been looking for.
Chartered Semiconductor (Nasdaq) advanced 40 cents, or 2.1%, to 19.10. The Singapore chip foundry reported third-quarter results that showed a loss for the period, but nevertheless proved to be a little more encouraging than analysts had projected.
Shares of several cable-television operators moved higher. Charter Communications added 59 cents, or 4.5%, to 13.62, Comcast gained 40 cents, or 1.1%, to 36.82, and Cox Communications rose 44 cents, or 1.1%, to 40.15. Thomas Weisel Partners said that cable operators should benefit from SBC Communications' decision, revealed Monday with its quarterly results, to scale back the growth of its digital subscriber line service offering.
EarthLink (Nasdaq) slid 2.51, or 14%, to 14.85. The Atlanta Internet service provider issued stronger-than-expected third-quarter results, but also signaled that its customer growth had slowed.
AT&T Wireless increased 1.26, or 9.7%, to 14.20. The Redmond, Wash., provider of wireless communications services reported third-quarter results that topped what analysts had been looking for.
Several steelmakers moved higher following a ruling late Monday by the U.S. Trade Commission, which said it determined that domestic steelmakers have been significantly harmed by cheap imports; the ruling could lead to the erection of barriers limiting steel imports. USX-U.S. Steel Group gained 28 cents, or 1.9%, to 15.02, Nucor rose 1.05, or 2.5%, to 42.87, and AK Steel improved 41 cents, or 4.6%, to 9.31.
McKesson advanced 1.56, or 4.2%, to 38.95. The San Francisco drug distributor and health-care information technology provider posted stronger-than-expected fiscal second-quarter results.
Watson Pharmaceuticals fell 3.05, or 6%, to 48.11. UBS Warburg reduced its rating on the Corona, Calif., drug maker, and lowered its earnings projections for the company.
Furniture Brands dropped 2.04, or 8.9%, to 20.96. UBS Warburg cut its rating on the St. Louis furniture manufacturer, saying it believes the company has lost market share to rival manufacturers.

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

International News
U.S. Energy Giant Weighs a Move To Pull Out of India
Associated Press

10/24/2001
The Asian Wall Street Journal
9
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -- Following Enron Corp. U.S. energy company AES Corp. has turned to the Indian prime minister for help in settling its grievances with a state government.
In a letter to Atal Bihari Vajpayee, AES Corp.'s President Dennis W. Bakke said his company's determination to continue in India is being tested by the government of eastern Orissa state.
A copy of the letter, dated Oct. 1, was made available to the Associated Press.
AES operates two power plants in Orissa, holds 49% of the Orissa Power Generation Corp. and manages the main power distribution company in the state.
AES and Enron are the only major American power companies to make big investments in India since the government allowed foreign investment in the sector in the early 1990s.
In his letter, Mr. Bakke drew Mr. Vajpayee's attention to the "expropriation, repeated contract violations, intimidation . . . and direct interference with day-to-day management" by the state government and its agencies.

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

UK: LNG delays could spawn shipping crisis - analysts.
By Pete Harrison

10/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, Oct 24 (Reuters) - The transport chain supporting the global LNG industry will be finely poised in coming years between profitability and a crisis of oversupply if projects miss their deadlines, shipping analysts warn.
More LNG tankers than ever before are being constructed in the shipyards of the Far East, many of them ordered speculatively against anticipated demand, which might emerge later than scheduled.
"The issue is timing," Jarle Sjo, shipping equity analyst at Oslo-based investment bank First Securities told Reuters.
"Historically, LNG projects have been delayed - you can estimate at about six months - and if that happens it will probably get ugly in the short term," he added.
The world fleet of LNG tankers currently numbers 123, but will have swollen by about 37 percent by the end of 2004, according to shipping database Fairplay.
Gas industry analysts expect some LNG projects to be delayed as a result of the economic downturn, excess capacity at existing plants in Asia and a sharp fall in U.S. natural gas prices this year.
Svein Erik Amundsen, Managing Director of Norwegian shipping group Bergesen, said that a sustained economic downturn could have "consequences."
"I wouldn't be surprised by project delays," he told Reuters. "This could result in some tonnage coming out of the yards without immediate employment."
"I think you can say we're still optimistic, but more cautiously optimistic than before," he added. Bergesen has three new LNG ships on order, two of which have already been contracted out to Belgian gas distributor Distrigas.
STOP AND THINK
The world's largest and only pure LNG shipping player, Golar LNG, historically bullish in its outlook, has also been forced to stop and consider the problem.
Golar has six ships locked into long-term contracts, but four more are under construction at South Korea's Daewoo and Hyundai yards and do not yet have firm future employment.
"There is a reasonable balance between the production coming onstream and the amount of ships ordered," Golar Executive VP Sveinung Stohle told Reuters, "The only risk is things might be delayed."
Stohle said that contracting out the new ships remained an option, but it was also developing an LNG trading arm, which might have a use for some of them.
Golar's closest competitor in terms of size, Exmar, is taking a more traditional approach. It has six ships on order and said it would leave as little as possible to chance.
"We've chartered out all of them except the Samsung ship, which is under offer for the (Qatari) RasGas tender," Managing Director Nicolas Saverys told Reuters. Four are booked out to El Paso and one to Enron.
He said that until all the upcoming projects had their Supply Production Agreements in place, it would be too risky for companies to place fresh ship orders.
"It's a good time to wait," said Saverys.

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

INDIA PRESS:British Gas Seeks ONGC Deal For Field Control

10/24/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- British Gas has offered India's Oil & Natural Gas Corp. (P.ONG) equity in its exploration acreage in Brazil and a cash settlement in lieu of operatorship of the Tapti Panna and Mukta oil fields, the Economic Times reported Wednesday.
ONGC and Reliance Industries Ltd. (P.REL) are claiming operatorship of the Tapti Panna and Mukta oil fields following Enron Oil & Gas India Ltd.'s 30% stake sale to BG, according to the report.
State-owned ONGC holds a 40% stake in the Panna-Mukta and Tapti fields and Reliance owns 30%.
The Enron Oil & Gas stake sale will fall through if BG isn't given the operatorship of the oil fields, Nigel Shaw, vice president of BG India said in the report.
Shaw said the equity partners are in discussions on the issue of operatorship, the report said.
British Gas is a unit of BG Group PLC (BRG). Enron Oil & Gas is a unit of Enron Corp. (ENE).

Newspaper Web site: http://www.economictimes.com

-By Dow Jones Newswires; 91-11-461-9426; ruchira.singh@dowjones.com

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

BG Offers ONGC Brazilian Assets to Get Managing Rights in India
2001-10-24 01:12 (New York)

     Mumbai, Oct. 24 (Bloomberg) -- BG Group Plc has offered Oil &
Natural Gas Corp. a stake in exploration projects in Brazil if
India's biggest oil producer allows BG to run the oil fields it
bought from Enron Corp. in India, the Economic Times reported,
without citing any officials.

     BG's purchase of Enron's 30 percent stake in the three oil
and gas areas in India is contingent on winning the right to
manage the developments. Reliance and ONGC, which together own 70
percent of the exploration venture, have both claimed rights to
run the oil and gas fields.

     BG has asked ONGC to waive its right to decide the operator
after Enron quits in return for a stake in its oil and gas sites
in Brazil, the paper said. It didn't give details on the Brazilian
interests BG may offer ONGC. BG has set Oct. 31 as a deadline to
resolve the ownership dispute, the paper said.

     The purchase from Enron would give BG a 30 percent stake in
the Tapti and Panna-Mukta oil and gas fields, as well as 63
percent of an untapped deposit on the west coast of India. The
assets hold more than 170 million barrels of oil and gas.

     Before agreeing with BG, Enron rejected bids from its Indian
partners, ONGC and Reliance, as well as from the nation's biggest
refiner, Indian Oil Corp.

House stimulus bill would give billions to huge companies; Senate Democrats present alternative
By CURT ANDERSON
AP Tax Writer

10/23/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - General Motors, IBM and Kmart are among corporations that would receive billions of dollars in tax refunds under a $100 billion House Republican economic stimulus package. Democrats say it is far too generous to companies and does too little for individuals.
Seven companies would get a total of $3.3 billion in refunds of alternative minimum taxes they paid as far back as 1986. The tax, which the House legislation also would repeal outright, is intended to ensure a basic minimum income tax is paid by companies and individuals that claim numerous deductions and credits.
IBM would get a $1.4 billion refund, according to the nonpartisan Congressional Research Service, while GM would get $832 million, Kmart $102 million and General Electric $671 million. Others specified for big refunds include energy giant Enron, at $254 million; U.S. Steel, $39 million; and grocery chain Kroger, $9 million.
In addition, the study found that Ford Motor Co. would get a refund that could total $2.3 billion, while Chevron's could reach $314 million.
Counting repeal of the tax, corporations would get more than $25 billion in tax relief from these minimum tax provisions in 2002 alone. In addition, the bill would make permanent a temporary tax break for financial services firms doing a lot of overseas business, providing them $21 billion in tax relief over 10 years.
The generous corporate tax breaks are among the most contentious items in the House GOP measure, scheduled for a floor vote Wednesday. Democrats say the measure is certain to change once it reaches the Senate; the Bush administration also has signaled that $100 billion is too costly.
"It's clear the House bill cannot pass the Senate as it is," said Sen. John Breaux, D-La.
For individuals, the House legislation includes a new round of tax rebate checks for workers who didn't get them this summer and a cut in the current 27 percent income tax rate to 25 percent in 2002, four years earlier than under the just-enacted tax cut. The measure also reduces capital gains rates from 20 percent to 18 percent for most taxpayers, enhances business equipment write-offs and allows companies to deduct current losses against taxes paid five years earlier.
The primary sponsor, Ways and Means Committee Chairman Bill Thomas, said in a newspaper opinion piece published Tuesday in USA Today that the legislation "is a shot of adrenaline" that will help restart the economy while not triggering inflation.
"Businesses generate jobs, and jobs are the core of a strong economy," wrote Thomas, R-Calif.
While bipartisan support backs some of the House items, Senate Democrats have been pushing for expanded unemployment benefits and help for workers who lose health insurance. Sen. Max Baucus, chairman of the Senate Finance Committee, presented a $70 billion proposal Tuesday that would extend unemployment benefits by 13 weeks, provide a 50 percent federal match for COBRA health insurance policies and allow more workers to qualify for Medicaid.
The legislation also includes rebate checks and some business items similar to the House bill but not the capital gains reduction or the alternative minimum tax relief. Tax cuts in the Baucus measure would total $35 billion in 2002, far below the House GOP level.
"This proposal appropriately responds to the sign of the times, helping this nation get back to work and recover quickly," said Baucus, D-Mont.
Other Democrats were working on spending programs. Senate Appropriations Committee Chairman Robert Byrd, D-W.Va., said he was putting together a $20 billion package that included hiring extra customs and border agents and food inspectors, augmented security at nuclear plants and purchase of more vaccines.
Sen. Charles Grassley, R-Iowa, said President Bush does not want the stimulus bill laden with additional spending.
"Everything in this package needs to be stimulative," Grassley said. "There needs to be more done on the investment side."
---
On the Net: House members: http://www.house.gov/house/MemberWWW.html

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

Wechsler Harwood Halebian & Feffer LLP Announces Class Periods

10/23/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

DQE, Inc. (DQE); Enron Corp. (ENE)
NEW YORK, Oct. 23 /PRNewswire/ -- Notice to persons who transacted in the following securities and respective class periods: CORPORATION CLASS PERIOD DUE DATE
DQE, Inc. 12/06/00-04/30/01 12/05/01
(NYSE: DQE)
Enron Corp. 01/18/00-10/17/01 12/21/01
(NYSE: ENE)
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") (http://www.whhf.com) has been retained to investigate claims or filed class action complaints involving the securities of the above companies on behalf of investors.
Wechsler Harwood has extensive experience representing shareholders in class actions and has served as lead counsel on behalf of shareholders in many such actions. The reputation and expertise of this firm in shareholder and other class actions has repeatedly been recognized by the courts.
If you wish to discuss these actions, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, by calling toll free 877-935-7400 or by contacting: Patricia Guiteau
Wechsler Harwood Shareholder Relations Department; DQE, Inc.:
pguiteau@whhf.com or whhfus@yahoo.com.
Ramon Pinon, IV
Wechsler Harwood Shareholder Relations Department; Enron Corp.:
rpinoniv@whhf.com or whhfus@yahoo.com.
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X72542557

/CONTACT: For DQE - Patricia Guiteau, pguiteau@whhf.com, or For Enron - Ramon Pinon, IV, rpinoniv@whhf.com, both of Wechsler Harwood Shareholder Relations Department, whhfus@yahoo.com/ 18:37 EDT
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.

Business
Stock Analysis/Call In
Bruce Francis, Kathleen Hays

10/23/2001
CNNfn: Markets Impact
(c) Copyright Federal Document Clearing House. All Rights Reserved.

KATHLEEN HAYS, CNNfn ANCHOR, MARKETS IMPACT: Both the Dow and the Nasdaq lost ground today after another big round of earnings news.
FRANCIS: Lets go to Keith in Alaska with a quick question for Don and Don let`s give us a zippy answer to.
LUSKIN: All right.
CALLER: Hey Don I like to know as far as Enron (URL: http://.www.enron.com/) is concerned, how representative of the energy sector is this because I`ve been watching as a small investor that`s kind of brand new, watching it just kind of plummet. So and I`m only investing a little bit every month in it but you think that`s pretty wise idea just kind of keep on doing small investments?
LUSKIN: Well as a general investing strategy yes but Enron is a special case where we have a company that`s in bad trouble. We had a CEO who basically left without explanation a couple of months ago, then yesterday the CFO has been accused of some pretty strange looking self dealing issues. We don`t know how that`s going to resolve but this is a company under a cloud so you might want to hold off on your buying program until that cloud lifts a little bit.
FRANCIS: All right Don, thank you very much; we appreciate it. Don Luskin.
LUSKIN: All right.

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


happy to talk to bill. do you want to go elizabeth??
 -----Original Message-----
From: 	St. Clair, Carol
Sent:	Wednesday, December 19, 2001 4:34 PM
To:	Mellencamp, Lisa; Sager, Elizabeth
Cc:	Shackleton, Sara
Subject:	RE: Credit issues

Lisa:
I have already I think "burned my bridges" with both Tanya and Debbie although I am not entirely sure about what I did to make them act the way they are.  It may be better if you and/or Elizabeth meet with Bill and talk generally about how he wants credit issues to be handled and maybe he can shed some light on what is going on.

Carol St. Clair
EB 4539
713-853-3989 (phone)
713-646-3393 (fax)
281-382-1943 (cell phone)
8774545506 (pager)
281-890-8862 (home fax)
carol.st.clair@enron.com

 -----Original Message-----
From: 	Mellencamp, Lisa
Sent:	Wednesday, December  19, 2001 4:30 PM
To:	St. Clair, Carol; Sager, Elizabeth
Cc:	Shackleton, Sara
Subject:	RE: Credit issues

i am thinking we should meet (i will bring the baseball bat in lyons's office).
bradford, rohauer and brackett???

 -----Original Message-----
From: 	St. Clair, Carol
Sent:	Wednesday, December 19, 2001 4:13 PM
To:	Mellencamp, Lisa; Sager, Elizabeth
Cc:	Shackleton, Sara
Subject:	Credit issues

Lisa and Liz;
I am very concerned about the way that credit is handling and coordinating with us on margin issues.  For over a week we have been waiting for them to compile and send to us information on LC's that are due to expire at the end of December.  We finally received a very cryptic spreadsheet this afternoon which requires alot of follow up in order for us to determine what our rights are.  I get the sense that credit assumes that since we are in bankruptcy we will never have the right to draw on LC's that we are holding when in fact we know that this is not necessarily true.  For example, this afternoon I found out that we are holding an $8 million LC for trades done with Enserco under an ISDA.  The drawing condition is a failure to pay.  Under the ISDA, they were required to renew this LC within 20 Business days of the expiry date which is 12/31.  If they don't renew I'm hoping that we can declare an Event of Default, terminate, request payment of a termination payment and if they don't pay draw.  I'm not sure that by following all of the cure periods in the ISDA we can be in a position to draw on the 31st.  That's just one example.  Do you have any thoughts on this?

Carol St. Clair
EB 4539
713-853-3989 (phone)
713-646-3393 (fax)
281-382-1943 (cell phone)
8774545506 (pager)
281-890-8862 (home fax)
carol.st.clair@enron.com


Jim,

Answers in Blue

James D Steffes@ENRON
04/12/2001 11:30 PM
To: James W Lewis/HOU/EES@EES
cc: Scott Stoness/HOU/EES@EES, Richard Shapiro/NA/Enron@Enron, Scott
Gahn/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron, Susan J Mara/NA/Enron, Jeff
Dasovich/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Vicki
Sharp/HOU/EES@EES, Mike D Smith/HOU/EES@EES
Subject: Pros & Cons of EES Filing Testimony in Rate Case

Jay --

I wanted to talk with first thing on Friday about our decision to weigh in
with testimony in this case.  Forgetting the question Legal may or may not
have (let's assume they don't have any concerns) about Scott testifying, it
is still my opinion that we should not file testimony. I will adjust my
schedule to meet with you.

First, I assume that you have already marked your book to the Lynch
"thoughts" on rate design and revenue allocation included in the initial
Order.   I make this assumption, because the loss to EES has already occurred
and our goal now is to try and bring back some of the value by (a) focusing
on revenue sharing and (b) rate design.  Scott indicates that the loss could
be $100MM with bad outcomes on the 2 key issues.  My purpose of EES' activity
is to try and minimize that number.  I feel that a quiet but forceful role in
the case is the best vehicle given our recent troubles in CA and before the
CPUC.  We have a reserve set aside for the actual outcome of the rate case.

Second, I am not sure that Govt Affairs is comfortable with Scott's model of
rate design.  While tiering of rates is on the table, the question of demand
reduction payback under his framework could result in customers using 70% of
their load and paying nothing.  That hardly makes sense.  Now maybe we just
don't understand, but putting in testimony that is unclear or confusing isn't
going to win the day before the CPUC.  When we talk with you this morning, we
should be able to get you comfortable.  If we cannot agree, then we should
sit down with Don and Janet.

Third, most of our victory will come from aligning with the big users.  If we
are supporting / defending our own testimony (which they haven't seen), I
think that our ability to work through a Settlement will be limited.  Our
goal is to "pick and choose" from the best solutions proposed while trying to
highlight other options through cross-examination (granted, this may be very
hard).   We should have a list of the best to worst outcomes for Enron and
should work to get the best possible outcome.

Fourth, someone may try to get EES to weigh in on the allocation of these
costs to DA customers.  We have agreed not to take on that issue.  Scott
doesn't get to use the Fifth Amendment to not answer. Let's discuss strategy

Scott and his team is preparing testimony.  Give me a call.  If Scott and you
are intent on moving forward, we'll do as you see fit within the other
constraints.

Jim

---------------------- Forwarded by James D Steffes/NA/Enron on 04/12/2001
11:12 PM ---------------------------
From: Leslie Lawner on 04/12/2001 05:58 PM
To: Richard Shapiro/NA/Enron@Enron, Mike D Smith/HOU/EES@EES
cc: Scott Stoness/HOU/EES@EES, Harry Kingerski/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron, Tamara Johnson/HOU/EES@EES, Robert
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON

Subject: pros and cons

Here is the list of pros and cons for Scott Stoness filing testimony in the
CPUC rate design case (testimony due tomorrow, hearing set to begin next
Monday).  We have a call into Mike Smith to get legal's view.

Pros of filing testimony:

Getting out on the table a demand reduction program and a market-based
pricing mechanism

Favorable "strawman" proposal can move direction of CPUC decision in our favor

Insurance policy in case no one files a proposal we like

Can be withdrawn before hearing if we have other proposals we can support

Could give us leverage to participate in settlement negotiations

Easier to make case through direct testimony than on cross exam.

Cons of filing testimony:

We get in a position of having to defend our position and loose ability to
throw support behind other positive proposals (alone or in combination)

We open ourselves to cross examlination and discovery  (Scott Stoness will be
supporting witness and could have information we would not want revealed).

Enron is not very popular these days and filing/testimony could fuel more
negative press

Additional Enron resources will be used (Scott's time, Tamara's time)

Market dysfunction may help ENA's position

Scott Stoness estimates that there is a $50 million risk if dollars are not
apportioned properly to each rate class, but this is an issue that a number
of parties will likely be addressing in their testimony.  He estimates that
there is an additional $50 million at risk if CPUC's seasonal rate design is
adopted as opposed to his two-part real time pricing proposal.  $100 million
potential loss if Lynch proposal does not solve the problem for the winter of
2001-2002 and anothe rate increase is needed in November.


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Here are the facts to be converted into Talking Points / Facts Sheet for CA
TEAM.

Thanks,

Jim

----- Forwarded by James D Steffes/NA/Enron on 02/27/2001 02:14 PM -----

	Mary Schoen
	02/22/2001 02:55 PM

		 To: Neil Bresnan/HOU/EES@EES, Alan Comnes/PDX/ECT@ECT, Jubran
Whalan/HOU/EES@EES, Kristin Walsh/HOU/ECT@ECT, Clayton Seigle/HOU/ECT@ECT,
Jeffrey Keeler/Corp/Enron@ENRON, James D Steffes/NA/Enron@Enron, Harry
Kingerski/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Janel
Guerrero/Corp/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Sandra
McCubbin/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Paul Kaufman/PDX/ECT@ECT
		 cc:
		 Subject: CA Supply Realities

Attached is a memo comparing the CEC's forecasted supply and a more realistic
look at what additional resources might be available this summer.

The bottom line is that:

1.  The CEC significantly underestimates the outages that may occur this
summer.  They estimate in their 5,000 MW supply deficit for the summer that
expected outages will be around 3,000MW.  However, November and December saw
significantly higher outage levels.  (7,265 MWs) The FERC has investigated
these outages and found no improprieties- just that the plants are overtaxed
from running at higher than normal capacities.

2.  There are a lot of uncertainties surrounding the 1,244 MWs of projected
supply from rerating/restarting existing thermal and renewable projects.  It
is very unclear how much of this will be able to come on line by this summer,
if at all.  As evidenced by the e-mail I sent out this morning, local
communities may be very opposed to restarting shut down units.  In addition,
these units are likely to be uneconomical.

3.  In the existing resource pool, there are roughly 1,430 MWs of peaking or
other generation units that are running up against their operating hour
limitations from air quality regulations.  The Governor has ordered the local
air quality districts to address these restrictions,  We are beginning to
seem some movement; however, the US EPA has yet to weigh in on these relaxed
standards.

4.  The distributed generation/back-up generation capacity to make up some of
the shortfall is still an unknown.  While there has been some relaxing of the
limitations on run hours for back-up generation at "essential public
services" the increase in DG is expected from "clean" sources, not diesel
emergency generators.

5.  The CEC is doing everything it can to get 50+ MW peaking units on-line by
this summer.  They are promising a 21-day permit application approval process
and are offering to pay half of the cost of offsets, for "clean" sources of
generation in critical areas.

Please let me know if you have any questions or need additional information.

CEC's Summer Forecasted Peak Demand - Resource Balance:

List of Peakers running into their operating hour limitations:

Also available in hard copy format only:
(please e-mail me your fax number if you'd like a copy)

Table 1:  Fully Executed CA ISO Summer Reliability Agreements (the ISO
Peaking Facilities)
Table 2:  Summer 2001 Supply Options - Renewables Construction Status Summary
Table 3:  Summer 2001 Supply Options - Rerate of Non-CEC Projects
Table 4:  Summer 2001 Supply Options - CEC Rerate Status Summary
Table 5:  Idle Biomass Plants Potentially Capable of Restart
Mary Schoen
Environmental Strategies
Enron Corp
713-345-7422


Gregory,

The book code is XZP for all of the Basis option deals.  The book code does
not change month to month, it is always XZP.

Thanks,
Susan

Gregory Carraway@ENRON
11/07/2000 05:01 PM
To: Susan M Scott/HOU/ECT@ECT
cc:
Subject: Re: Nat Gas Basis Options

Please include book codes for these deals.


PLEASE KEEP YOUR EOL MACHINE ON THIS WEEKEND.  DO NOT TURN IT OFF.

THANKS

IT SUPPORT


NEW DIALING INSTRUCTIONS

To:          All Enron Houston Users

Subject:   New Dialing Instructions

Ref:   Tie Line Access Code Changes - Enron Houston Users

Just a reminder, the access codes for remote locations were modified within the Enron Building phone system.  The modifications will affect users as follows:

1.        We have changed the first digit dialed when accessing the Tie Lines from 7 to 8.  This change will only affect Enron Building users.
2.        The second and third digits of the London, Calgary, Omaha, and Portland tie lines have also changed.  This change will affect all users.  All other digits of existing dial strings will remain the same.  For your reference, a list of the new dial strings is identified in the table below.

REVISED DIAL STRINGS FOR ENRON TIE LINE NETWORK
Users must dial 8 digits to call via Tie Lines

Enron Location	Old String	New String
Beijing	7 810 XXXX	8 810 XXXX
Buenos Aires	7 900 XXXX	8 900 XXXX
Calgary	7 403 XXXX	8 283 XXXX
Caracas	7 58 XXXXX	8 58 XXXXX
Chicago	7 220 XXXX	8 220 XXXX
Dahbol India	7 812 XXXX	8 812 XXXX
Hinsdale	7 235 XXXX	8 235 XXXX
London	7 830 XXXXX	8 44 XXXXX
Monterey	7 152 2XXX	8 152 2XXX
New York	7 212 XXXX	8 212 XXXX
New York Metals	7 211 XXXX	8 211 XXXX
Omaha	7 87 XXXX	8 287 XXXX
Portland	7 834 XXXX	8 234 XXXX
Rio De Janiero	7 920 XXXX	8 920 XXXX
Sao Paulo	7 910 XXXX	8 910 XXXX
Sydney	7 800 XXXX	8 800 XXXX
Tokyo	7 860 XXXX	8 860 XXXX
Toronto	7 285 XXXX	8 285 XXXX
Washington DC (Future)	N/A	8 245 XXXX

* X represents an extension number


---------------------- Forwarded by Don Miller/HOU/ECT on 11/16/2000 11:52 AM
---------------------------

"Leitz, Thomas" <ThomasLeitz@ICFConsulting.com> on 08/31/2000 10:08:25 AM
To: "'Don Miller'" <Don.Miller@enron.com>
cc: "Mukherjee, Gautam" <GautamMukherjee@ICFConsulting.com>, "Fusco, Maria"
<MariaFusco@ICFConsulting.com>
Subject: RE:

Thomas Leitz
ICF Consulting
Wholesale Power Group
9300 Lee Highway
Fairfax, VA 22031-1207
tleitz@icfconsulting.com
Voice: 703-934-3271
Facsimile: 703-934-3968

Don,

We have incorporated the changes you requested into this latest version of
the Market Overview.  Let us know if you have any questions/comments.

Sincerely yours,

Tom Leitz

 <<YAG1127b.doc>>

 - YAG1127b.doc


----- Forwarded by Sara Shackleton/HOU/ECT on 08/11/2000 11:45 AM -----

	"Jeff Seely" <JeffSeely_008118@netstock.customer-email.com>
	08/10/2000 11:37 PM

		 To: <sshackl@enron.com>
		 cc:
		 Subject: ShareBuilder News - Aug 2000

Dear Sara,

EXCITING UPDATES WITH SHAREBUILDER!
Last month I told you about some exciting things happening here with
ShareBuilder. Have you noticed it on our site yet? We've just added over
1,000 new stocks for a grand total that tops 3,000! There's never been a
better time to consider adding new stocks or index shares to your plan. Visit
http://www.sharebuilder.com and click on "ShareBuilder Stock List" today to
checkout the complete list.

Now you can make dollar-based investments in some of these new stocks.
Here's an example of a few with names you may recognize:

Bally Total Fitness Holdings  BFT
Comcast Corporation   CMCSA
Loral Space & Communications  LOR
Nabisco Group Holdings   NGH
Neiman Marcus Group   NMG B
Pepsi Americas    PAS
Petco Animal Supplies, Inc.  PETC
Readers Digest Association  RDB
Register.com Incorporated  RCOM
Revlon Incorporated   REV
Tommy Hilfiger Corporation  TOM
Viacom Incorporated   VIA

SHAREBUILDER.COM AFFILIATE PROGRAM:
Another exciting addition you might have noticed recently is our new
ShareBuilder Affiliate Program. Web portal sites that qualify to become
affiliates will be able to share the benefits of ShareBuilder with visitors,
and receive compensation.  If you have a business or work for a company that
has a web portal site and would like to provide a great investment tool for
your visitors, your organization can apply to become a ShareBuilder
Affiliate.  To find out more about our affiliate program, visit
ShareBuilder.com and click on "Become an Affiliate".

CREDIT UNION PARTNERS:
I'm also pleased to tell you that we've partnered with many credit unions
over the last few months - we now have dozens of credit union partners. These
partnerships let credit union members take care of all of their finances from
a single online source - from balancing checkbooks, to making mortgage
payments, and now watching long-term investments grow through ShareBuilder.
Two of our most recent credit union partners are among the biggest in the
nation: Boeing Employees Credit Union and The Golden 1 Credit Union. If
you're a member of either, look for ShareBuilder on these sites: becu.org and
golden1.com.

SAFECO PARTNERSHIP:
We also have entered into a partnership with SAFECO Corporation, one of the
leading insurance companies in the U.S. and a Fortune 500 company.  We
launched the SAFECO ShareBuilder last month, which is now available to direct
investors in its mutual funds at safecofunds.com.  This is the first
relationship we have announced with a major insurance company and are
delighted to be associated with SAFECO, both as a partner and as a major
private investor in our company.

CUSTOMER CARE:
If you have any questions regarding your account or ShareBuilder plan, feel
free to contact one of our customer care agents via email at
mailto:customercare@netstock.com or call us toll-free at 1-888-NET-STOK
between the hours of 6 AM and 6 PM Pacific Time Monday through Friday.

Best regards,
Jeff Seely President and CEO
Netstock Direct Corporation

P.S. You are receiving this e-mail because you have a ShareBuilder or
Netstock Direct Account setup with us.  You may unsubscribe, update or change
your e-mail preferences, by visiting the "Account" section of the
ShareBuilder site at http://www.sharebuilder.com or if you are a Netstock
Direct customer at netstockdirect.com.

ShareBuilder(tm) is brought to you by Netstock Investment Corporation, a
registered broker-dealer and a member of the NASD and SIPC.

This email was sent to:  sshackl@enron.com


Dear Cassandra,

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

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

Thanks,

Shona

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

Subject: 12/5 Limit Violations and Notifications - Comments

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

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

Veronica will call you to coordinate re-distribution.

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

Thank you,
Cassandra.

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

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

Subject: 12/5 Limit Violations and Notifications


I spoke with Phil Harris today.

My key messages -

1. Commercial interest does not appear high on partnering / investing with
PJM Technologies right now.  Doesn't mean that this is forever, but probably
will want to gauge the markets reaction to your activities before .

2. We've drafted a Stipulation for Enron and PJM that gets most of Enron on
board that I'm happy to send to your lawyers, but I want to be realistic
about its chances of success -

a)  appointment of a Settlement Judge (not Technical Staff) to oversee the
consolidation process with quarterly updates and right to comment from all
parties;
b) PJM will agree to modify its system including 1) FTR system, 2) eliminate
ICAP obligation, and 3) discussion about central market making functions (day
ahead markets).
c) a more specific obligation to move forward with the ability for Enron file
at FERC on Nov.1.02 to repeal this status with PJM pre-approval on our filing
(I went beyond the agreeing not to oppose such a filing).

He agreed with me that PJM wouldn't be able to sign.  We talked a little
about a middle ground, but he and I did not see any real options.

Given the time commitments for his lawyers, he is going to file something
that would (a) agree to a Settlement Judge, (b) ask FERC not to predetermine
any outcomes, especially a merger, and (c) don't hold his RTO hostage to our
demands.

I think that given the Alliance RTO and GridSouth RTO language, he'll get his
Order.

We agreed to keep talking.  I told him that we are trying to enter into
discussions with the PA PUC about moving their market further ahead and I'd
keep him in the loop.

He told me that he would be on C-SPAN this Wed am to discuss competition.  He
really is a big believer in this market.

Finally, and most interestingly, he did not oppose the idea of minimizing the
central market making functions of PJM.  He does not have a philosophy that
the Sys Op must manage all of the markets (I specifically asked about Day
Ahead).  He does see  a need for a workable solution that can shore up public
confidence right now.  He would like to migrate to a more market driven
environment in a reasonable timeframe.  He fully agrees that the market is
better than a Sys Op in determining what happens - his limitations are
technology and systems.  Ultimately the Sys Op should do nothing more than
manage the network within the last 10 minute interval.


i think i will load up on some good cerals or buck wheat pancakes and coffee this weekend,

-----Original Message-----
From: Fenner, Chet [mailto:Chet_Fenner@bmc.com]
Sent: Friday, March 01, 2002 9:20 AM
To: 'Joe Parks'; Parks, Joe
Subject: RE: A PREVIEW OF COMING ATTRACTIONS

Oh, this will be good!

-----Original Message-----
From: Joe Parks [mailto:jparks1@houston.rr.com]
Sent: Thursday, February 28, 2002 11:42 PM
To: chet_fenner@bmc.com
Subject: A PREVIEW OF COMING ATTRACTIONS


I think that this will continue to be a very sticky issue for us on all
services deals and I think the following is the way to handle it.

We build into all of these contracts that the counterparty may at any time,
chose to transact directly with a third counterparty.  We would still
administer the contracts and perform the scheduling etc. for them if they
chose to do this.  In this way, the customer may always chose to deal
directly if they chose and we would be doing the scheduling.  I believe that
this will serve to counteract concerns that we will not provide them fair
market prices since they could always chose to deal directly.  We are
confident that our prices are will be competitive and that the counterparty
will chose to transact through us.  We would of course need to protect our
share of the benefit in the case they transact with someone else.

Tom.

Kay Mann
05/11/2001 09:40 AM
To: Reagan Rorschach/ENRON@enronXgate
cc: Lloyd Will/HOU/ECT@ECT, Tom May/Corp/Enron@Enron, David
Fairley/ENRON@enronXgate

Subject: Re: MDEA Commercial Issues

Another point:

How do we price gas/power we sell to them, especially in light of our duty of
good faith and fair dealing?

Not expecting an answer via email, this is just a topic for further
discussion.

ckm

From: Reagan Rorschach/ENRON@enronXgate on 05/11/2001 09:03 AM
To: Lloyd Will/HOU/ECT@ECT, Tom May/Corp/Enron@Enron, Kayne
Coulter/HOU/ECT@ECT, Richard Broussard/Corp/Enron@Enron, Kay
Mann/Corp/Enron@Enron, David Fairley/ENRON@enronXgate, Jim Homco/HOU/ECT@ECT,
Gerald Gilbert/HOU/ECT@ECT
cc:

Subject: MDEA Commercial Issues

In an effort to get the commercial terms of the contract organized and
papered, we discussed the following issues during yesterday's meeting:

? What will be the contracted process for setting the Bogey?
? What heat rates or heat rate ranges will go in the contract?
? Can we create a schedule to collar the Bogey given a certain gas price?
? Can we get a gas management fee for being the Fuel Manager? (this is a
retrade)
? How does the network service transmission agreement including ancillary
services get accounted for in the "cost" calculation?
? How does Imballance get sorted out at the end of the the month as a profit
or a cost?

Regarding calculation of the Bogey, we have several issues.  First, what is
the methodology?  Rick is very close to having a stack model that
incorporates the business rules including minimum run times, startup costs,
VOM, etc.  Second, what are the daily inputs and who is responsible for
running the model?  This process will need to be documented every time the
calc is performed.  Third, what is the timing of the calc?  We discussed
getting the input info by 2am and doing the calc on a "day ahead" basis.
Only on a select basis would the calc be re-done mid-day.

We are planning on meeting with Marvin next week and working to resolution on
these issues.  This should result in a set of business rules that can be put
into the contract.

Please comment/correct/add/subtract to any or all of the above.  David
Fairley and I will be sending out the Marketing Strategy and Trading and Risk
Policy later this morning.

Thanks,

Reagan


PLEASE READ.
JEN
 - TEXT.htm

Date: Tue, 29 Aug 2000 11:50:32 -0700
From: "Jennifer Ballas" <Jennifer_Ballas@pgn.com>
To: Alan_Garton@pgn.com,Allen_Pierce@pgn.com, Al_Beck@pgn.com,
Art_Hickenlooper@pgn.com, Bao_Ha@pgn.com, Barbara_Pohl@pgn.com,
Bette_Stewart@pgn.com, Bill_Camper@pgn.com, Bill_Glenn@pgn.com,
Bill_Lawson@pgn.com, Bob_Coffman@pgn.com, Bob_James@pgn.com,
Bonnary_Warren@pgn.com, Celena_Williams@pgn.com, Cheri_Thomas@pgn.com,
Christopher_Moncrieffe@pgn.com, Chris_Barnes@pgn.com, Chris_Bond@pgn.com,
Chuck_McCartney@pgn.com, Colm_Lenaghan@pgn.com, Cynthia_Apodaca@pgn.com,
Dale_Garcia@pgn.com, Dan_Jones@pgn.com, Dave_Hunt@pgn.com,
Dave_Kruse@pgn.com, David_Blanchard@pgn.com, Dawn_Sukosd@pgn.com,
Donnece_White@pgn.com, Dore_Judd@pgn.com, Dustin_Brooks@pgn.com,
Earl_Cahoe@pgn.com, Emmanuel_Angulo@pgn.com, Gary_Kelsay@pgn.com,
Gary_Lindland@pgn.com, Gary_Reynolds@pgn.com, Gary_Tingley@pgn.com,
Gene_Glasner@pgn.com, Greg_Beck@pgn.com, Greg_Busch@pgn.com,
Harry_Wright@pgn.com, Janel_Loveall@pgn.com, Janet_Gulley@pgn.com,
Jann_Gilbert@pgn.com, Jan_Fauglid@pgn.com, Jay_Landstrom@pgn.com,
Jeff_Danielson@pgn.com, Jennifer_Busch@pgn.com, Jerry_Todd@pgn.com,
Jim_Bailey@pgn.com, Jim_Bushek@pgn.com, Joe_Ballas@pgn.com,
Joe_Barra@pgn.com, Joe_Johnston@pgn.com, Joe_Piluso@pgn.com,
Joe_Smith@pgn.com, John_Andresen@pgn.com, John_Linn@pgn.com,
John_McLain@pgn.com, John_Uwagbae@pgn.com, John_Vaaler@pgn.com,
Jon_Head@pgn.com, Jo_Calk@pgn.com, Judy_Schwabe@pgn.com,
Kathleen_Stone-DeBerry@pgn.com, Kathy_Davies@pgn.com, Ken_Huggins@pgn.com,
Larry_Morgan@pgn.com, Lea_Honeycutt@pgn.com, Loren_Mayer@pgn.com,
Lorne_Quigley@pgn.com, Louise_Hoppes@pgn.com, Mark_Zessin@pgn.com,
Michael_Barnhart@pgn.com, Mike_Gandert@pgn.com, Mike_Hemelstrand@pgn.com,
Mike_Newman@pgn.com, Mike_White@pgn.com, Nancy_Williams@pgn.com,
Niloofar_Khiabani@pgn.com, Norman_Hale@pgn.com, Oliver_Dillner@pgn.com,
Patrick_Gleason@pgn.com, Richard_Goddard@pgn.com, Rich_Farrell@pgn.com,
Rich_Rohrich@pgn.com, Robert_Weber@pgn.com, Ruth_Ash@pgn.com,
Sally_Rhys@pgn.com, Sam_Benitez@pgn.com, Sam_Siciliano@pgn.com,
Scot_Lawrence@pgn.com, Stan_Burnham@pgn.com, Stan_Gray@pgn.com,
Steve_West@pgn.com, Sue_Cowan@pgn.com, Tami_Clifford@pgn.com,
Tom_Ficker@pgn.com, Vern_Simmons@pgn.com, Vic_Purvis@pgn.com,
Wayne_Law@pgn.com, Weimin_Tung@pgn.com
Subject:  Vacation
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_F9A16103.4120570E"

How is everyone?  I just wanted to touch base with you.  Tomorrow I will be
heading out on vacation and will not return till Thursday, September 7th.
Most classes will remain as scheduled EXCEPT Wednesday and Friday Muscle
Maintenance and Friday Stretching.
Please try and help out when you can--setting up circuits, changing towels
bags, stocking towels in the locker rooms.
Don't party too much and I will see you soon.
Jen
 - TEXT.htm


I have changed the following deals to reflect a monthly expiry frequency
instead of daily:

483753
483759
483765
483766

Since I don't enter options very often, and have only done daily options
before, I'm still getting familiar with all the different parameters of the
deals. I'm sorry for the confusion. Thanks for catching that.

Kate


---------------------- Forwarded by Chris Germany/HOU/ECT on 12/27/99 11:38
AM ---------------------------

pdrexel@columbiaenergygroup.com on 12/27/99 11:30:20 AM
To: Dan Junek/HOU/ECT@ECT, Chris Germany/HOU/ECT@ECT
cc:
Subject: FINAL - JANUARY 2000 NEEDS

---------------------- Forwarded by Paul Drexelius/CES/ColumbiaGas on 12/27/99
11:36 AM ---------------------------

KIM NOVSEK BIZIK
12/27/99 10:48 AM

To: Morgan Sharifi/CES/ColumbiaGas@ColumbiaGas, Dale Ray
East/CES/ColumbiaGas@ColumbiaGas, Phil Villagomez/CES/ColumbiaGas@ColumbiaGas,
Darren Espey/CES/ColumbiaGas@ColumbiaGas
cc: Marianne Stiles/CES/ColumbiaGas@ColumbiaGas, Joanne
Swogger/CES/ColumbiaGas@ColumbiaGas, Noel Bartlo/CES/ColumbiaGas@ColumbiaGas,
Paul Drexelius/CES/ColumbiaGas@ColumbiaGas
Subject: FINAL - JANUARY 2000 NEEDS

The volumes listed below are Final volumes - note that the deadline for BUG
has
changed!  I still need to give you Peco volumes.
---------------------- Forwarded by Kim Novsek Bizik/CES/ColumbiaGas on
12/27/99 11:44 AM ---------------------------

KIM NOVSEK BIZIK
12/27/99 09:43 AM

To: Morgan Sharifi/CES/ColumbiaGas@ColumbiaGas, Dale Ray
East/CES/ColumbiaGas@ColumbiaGas, Phil Villagomez/CES/ColumbiaGas@ColumbiaGas,
Darren Espey/CES/ColumbiaGas@ColumbiaGas
cc: Marianne Stiles/CES/ColumbiaGas@ColumbiaGas, Joanne
Swogger/CES/ColumbiaGas@ColumbiaGas, Noel Bartlo/CES/ColumbiaGas@ColumbiaGas,
Paul Drexelius/CES/ColumbiaGas@ColumbiaGas
Subject: JANUARY 2000 NEEDS

Good Morning.  I have listed my needs below for all but Peco.
The red can be off Anr or Tgt.  Please advise.
The green is done - just need the activity number.
I have also included my nom deadline - I have a nom due today - LILCO.  Please
advise.

ANR
 CG&E- deliveries to Springboro 1550 dth/day LDC Nom Deadline is
12:30 on the 30th - note this can be served off TGT

Tetco
 BUG  145 dth/day LDC Nom Deadline is noon on the
28th
 Con Ed 261 dth/day  (estimate ONLY) LDC Nom Deadline is 2
pm on the 30th
 PECO
 PA Gas
 PSEG  1696 dth/day LDC Nom Deadline is 10 pm on the 29th
 Etown  23 dth/day LDC Nom Deadline is noon on the
29th
 NJN  7528 dth/day LDC Nom Deadline is 12:30 est on
the 30th

CNG - PA gas for PECO /day  (If we have a problem flowing this much,
please let me know as soon as possible so we can buy delivered gas to PECO's
gate from one of the other suppliers)

Transco
 LILCO  382 dth/day    (capacity release is also for
382) LDC Nom Deadline is noon on the 27th
 PSEG  189 dth/day LDC Nom Deadline is 10 pm on the
29th
 S Jersey  113 dth/day Transco nom must show Enduser # 012224 to
be confirmed- LDC Deadline is 12:30 on the 30th
 Piedmont 1113 dth/day LDC Nom Deadline was 10:30 est on
the 22nd - just need activity number now
 PSNC  190 dth/day (CES will get the capacity release for
this from PSNC)
   The supply will be from PSNC's pool #7620 (this is
their station 85 pool)

Texas Gas
 DP&L  1298 dth/day  LDC Nom Deadline is
12:30 est on the 30th
 CG&E  1550 dth/day LDC Nom Deadline is 12:30 on
the 30th - note this can be served off TGT


I will be out of the office thru November 21.  If you need an immediate reply, please respond to one of the following:

John Jesse   RAC issues  (402) 398-7843
Phil Boggs    Financial Planning issues (402) 398-7836


I have some questions regarding Jennifer's e-mail attached below.

Is this interruptible?
Is this a CES contract?

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

----- Forwarded by Debra Perlingiere/HOU/ECT on 10/17/2000 02:28 PM -----

	Jennifer Blay
	10/16/2000 11:40 AM

		 To: Debra Perlingiere/HOU/ECT@ECT
		 cc: Stacy E Dickson/HOU/ECT@ECT
		 Subject: Questa Petroleum

Here is the information regarding the John Singer deal we talked about.

Buyer - ENA
Seller - Questa Petroleum Company

1,588 MMBtu per day at Columbia Gas Transmission Corp. for October 01, 2000
through October 31, 2000.
Price is equal to US Dollars $3.15710 per MMBtu.
Interruptible Gas
Contract - Master Purch Wellhead

This deal was originally confirmed as an Oct-Dec delivery of firm gas....on a
GTC-Firm...so revised language might want to be included in your confirm(??)

Also, there are only two active trades with Oasis Pipeline Company which are
October Transportation deals...and I don't confirm.

Please let me know if you need anything else.
Thanks
Jennifer
5-7678


what is up with you??  the baby is doing great!   Are you still at Power with
smelly hands??

still partying like a rock-star

CARSON!


Dan--

Quantum & Enernet have verbally agreed to the attached terms.  Per Shonnie's
suggestion, I have forwarded the proposal to you in hopes that you could help
to incoporate the terms into the definitive purchase and gathering
documents.  I thought maybe we could use the latest Coleman documents as our
"standard" to incorporate these terms...I think its the best one so far.

A couple notes: (1) Quantum and Enernet will both be signatory parties to the
contract (if this is okay...however, who do we send the money to?...)
  (2)  Ignore the "Gathering System Financing" section for now

Please call me to discuss any/all aspects of this deal.

Thanks!

Dan


Attached is the EPSA generator interconnection "Bill of Rights" as we
discussed.


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I received a voice mail from Kristina Drew this morning indicating they
received FERC approval of this assignment on 5/31/01.  Are we working on an
amendment of the contract for Wendy per her email?  When we are ready,
Kristina indicated that we should print 3 originals of the assignment and
change the date on it if we have no other changes.  Please let me know status
so I can email her.  Thanks.

From: Genia FitzGerald on 05/18/2001 09:15 AM
To: Carol St Clair/HOU/ECT@ECT
cc: Rhonda L Denton/HOU/ECT@ECT
Subject: FW: From MEGA; Consent to Assignment....

FYI
-----
From: Edward Sacks/ENRON@enronXgate on 05/18/2001 07:13 AM
To: Wendy Conwell/ENRON@enronXgate, Rhonda L Denton/HOU/ECT@ECT
cc:
Subject: FW: From MEGA; Consent to Assignment....

Wendy will be the lead on this and I will assist her.

Ed

 -----Original Message-----
From:  Denton, Rhonda
Sent: Monday, May 14, 2001 3:05 PM
To: Sacks, Edward; Conwell, Wendy; Radous, Paul; Ngo, Tracy; Gonzalez,
Veronica
Cc: FitzGerald, Genia
Subject: From MEGA; Consent to Assignment....

Please assign to a credit analyst for review.
---------------------- Forwarded by Rhonda L Denton/HOU/ECT on 05/14/2001
03:03 PM ---------------------------

"Drew, Kristina" <DrewK@merchantenergy.com> on 05/14/2001 03:00:25 PM
To: "'rhonda.l.denton@enron.com'" <rhonda.l.denton@enron.com>
cc: "Abba Gana, Mustapha" <AbbaGanaM@merchantenergy.com>
Subject: From MEGA; Consent to Assignment....

Rhonda,

Please find attached for your review, a Consent to Assignment Agreement
between us, Enron Power Marketing, Inc. and Morgan Stanley Capital Group
Inc.  We would like to have the document ready to execute at about the same
time we execute the derivatives Consent to Assignment Agreement with Enron
North America, and we are waiting for FERC approval on the Physical Power
Sales as well.  I just wanted to present the agreement to you now, so that
if it is necessary, we have time to discuss any concerns.  I look forward to
talking with you to work toward the execution of the Agreement.

 <<EPM (POWER) Assignment Consent Agreement 042501.doc>>

Thanks,

Kristina M. Drew
Contract Administrator
Merchant Energy Group of the Americas, Inc.
410.295.1708

 - EPM (POWER) Assignment Consent Agreement 042501.doc


William Austin:

Fax: 281-953-6728

Francisco Pinto-Leite
Enron Americas
1400 Smith Street, EB 3888
Houston, TX 77002-7361

Tel: 713-345-7942
Fax:713-646-3490
fleite@enron.com


_______________________________________________________________

This message and any attachments are intended for the individual or entity
named above.  If you are not the intended recipient, please do not read,
copy, use or disclose this communication to others; also please notify the
sender by replying to this message, and then delete it from your system.
Thank you.
_______________________________________________________________

     Attached in Word 97 format, please find the Southern California
Generation Coalition Motion to Compel Discovery Responses from Southern
Calfiornia Gas Company and Motion Requesting a Shortened Response Time.

     If you have any questions, please contact Norman Pedersen at (213)
243-2810 or e-mail at napedersen@jonesday.com.  Thank you.

(See attached file: LA1067936.DOC)

Jaki Hawkins (213) 243-2848
Secretary to Norman A. Pedersen

 - LA1067936.DOC


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

You have been selected to participate in the Mid-Year 2000 Performance
Management process by providing meaningful feedback on specific employee(s)
that have been identified for you.  Your feedback plays an important role in
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Please provide feedback on the employee(s) listed below by accessing the
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begin your feedback input immediately.  Please have all feedback forms
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Feedback Due Date: Jun 16, 2000

Employee Name                   Supervisor Name                 Date Selected
-------------                   ---------------                 -------------
GINSBERG, JAMIE K.              MARK D COURTNEY                 May 24, 2000
LEGLER, MICHAEL J               MARK WHITT                      May 25, 2000
MARSHALL, CHERYL L              NATHAN L HLAVATY                May 31, 2000
MORGAN, JACKIE                  CHERYL D DUDLEY                 May 25, 2000
NEMEC, GERALD R                 BARBARA N GRAY                  May 23, 2000
OGDEN, MARY C                   BARBARA N GRAY                  May 19, 2000
RADFORD, PATRICIA A             STEPHEN W VAN HOOSER            May 19, 2000
WALKER, ROBERT M                BARBARA N GRAY                  May 19, 2000


Talked to Dave.  In a nut shell, here are the problem areas in the bill as he
sees it.  It was a very brief conversation, but I think I've captured the key
points:
Based on an expectation that the "expedited siting" bill would help site
plants, Dave's group had six plants on the drawing board.

The 5 ppm requirement kills 4 of the 6, i.e., the 4 can't meet the 5 ppm
requirement.
The requirement that the plants would either be 1) shut down after 3 years or
2) replaced with a combined-cycle plant kills the other 2 because a) shutting
down the plants in 3 years kills the economics, and b) the sites for the two
LM-6000s can't accomodate combined cylces (i.e., Dave couldn't get siting).
In addition,the generator would be required to sign an exclusive with the ISO
(which the EOB would have to approve), which takes away the optionality of
going to the market, thus killing the economics.
On the labor side, it's complicated, but in essence, by requiring that "...it
be shown that the applicant has a contract with a general contractor and has
contracted for an adequate supply of skilled labor to construct, operate, and
maintain the plant,"
it forces Dave to negotiate a labor deal before he knows what the project is
(i.e, before the project has been approved), and,
it effectively prevents Enron from having the option to use internal
resources (this issue is very specific to Enron; I can explain more if folks
prefer).

In short, bullets 1-3 would seem to affect both Enron and the market, while
the last bullet is, according to Dave, very Enron specific.  Point 2 in
bullet 4, according to Dave is sensitive and should not be made public.

If any questions, let me know.  Bruno has emailed the price cap and the
"general-funds-to-help-finance-the-cap" bills, and faxed the siting bill.

Best,
Jeff


Just checking to see if your problem has been resolved.

Thanks.

_____________________________________
Earlene O'Connell
Public Affairs Specialist
713-853-7870

	Jeff Dasovich
	Sent by: Jeff Dasovich
	11/07/2000 11:28 AM

		 To: Earlene O'Connell/NA/Enron@Enron
		 cc:
		 Subject:

Hi.  My palm for some reason isn't syncing.  Could you have Chris give me a
call to try to get it to work?  Thanks a bunch.

Best,
Jeff

415.782.7822