Waxman Seeks Justice Inquiry of Rove
The Washington Post, 07/18/01
Business World: How To Execute 10%, Nicely
The Wall Street Journal, 07/18/01

RUSSIA: INTERVIEW-Russian Tyumen Oil says foreign ties to grow.
Reuters English News Service, 07/18/01

COMMODITIES & AGRICULTURE - Enron Metals to pay fine to LME.
Financial Times, 07/18/01

City - Exchange fines Enron metals group #190,000.
The Daily Telegraph, 07/18/01

Exxon Mobil, U.A.E. Min Discuss Dolphin Gas Proj - Report
Dow Jones Energy Service, 07/18/01

Bush switch on conservation saves credibility
Chicago Tribune, 07/18/01
COMPANIES & FINANCE INTERNATIONAL - Energy trading unit fuels 27% leap in
Duke earnings.
Financial Times, 07/18/01
Letters to the Editor: India, Pakistan and the U.S.
The Wall Street Journal, 07/18/01
Business: Briefs - London Exchange fines Enron $264,000
Houston Chronicle, 07/18/01

A Section
Waxman Seeks Justice Inquiry of Rove

07/18/2001
The Washington Post
FINAL
A27
Copyright 2001, The Washington Post Co. All Rights Reserved

Rep. Henry A. Waxman (D-Calif.) called yesterday for a Justice Department
review of White House senior advisor Karl Rove's repeated discussions with
executives and representatives of companies in which he held stock.
In a letter to White House counsel Alberto R. Gonzales, Waxman said Rove
appeared to be in violation of federal conflict-of-interest laws.
Gonzales has said he was satisfied that Rove "took care to avoid" any
impropriety in meeting in March with Intel Corp. executives, and in
participating in broad discussions about administration energy policy while
owning more than $100,000 worth of Intel Corp. stock and more than $200,000
worth of stock in Enron Corp., General Electric Co. and other energy
companies. On June 7, Rove sold more than $1 million in stock in companies
doing business with the government.
Waxman, ranking Democrat on the House Government Reform Committee, said
federal law requires executive branch departments and agencies, including the
White House, to report "any information, allegation or complaint" involving
potential criminal conduct by an employee to the Justice Department. He said
he was not aware of any reason Rove should be exempt from such outside
investigation.
White House spokesman Dan Bartlett said Waxman's letter is under review, but
added, "We are confident that Karl followed all ethical guidelines and
statutes in his role as senior adviser to the president."
-- George Lardner Jr.

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

Business World: How To Execute 10%, Nicely
By Holman W. Jenkins Jr.

07/18/2001
The Wall Street Journal
A19
(Copyright (c) 2001, Dow Jones & Company, Inc.)

How come Ford adopts the same white-collar performance review system as
General Electric but gets vilified for it, hounded by discrimination lawyers
and AARP? Last week, less than a year after launching it, CEO Jacques Nasser
was moved to dump a brand new executive grading system designed to weed out
the least capable 10% of Ford's managers.
The short answer is that Ford isn't GE, though Jack Welch has been a model
for what Mr. Nasser seeks to accomplish at the auto company.
Bringing such a Torquemada system into a firm that faces slowing sales and
whose own boss considers his colleagues notoriously flabby and easy on
themselves meant it was a downsizing scheme from the start, whether
advertised that way or not. GE didn't introduce its version until a decade
after the Neutron Jack phase. But never mind. Trumpeting a win last week,
AARP declared its victory goes way beyond Ford. It sure does.
Forced ranking has waxed and waned as a fad over the decades, and most
students of management hold their noses around it. Its resurgence, at a time
when many employers are contemplating their first layoffs in years, can only
mean that companies are nervous about preserving their freedom to hire and
fire in a world run increasingly by the job-discrimination bar.
Ask any non-deluded European. What makes the U.S. economy relatively nimble
is that companies are not afraid to take on workers because they know they
can always get rid of them later. Harsh as this sounds, it's why we have a
lush job market compared to the employment Saharas of the Old World.
Yet firing in America has been a work in progress. Half a decade ago,
enlightened companies tried employee buyouts, but the lawyers descended,
forcing companies to offer the buyouts indiscriminately. Result: Highly
marketable workers took the windfall and immediately found other jobs, while
people who considered themselves unemployable skipped the loot and clung to
their cubicles.
Other companies, on the theory that it was OK to tell people they had to go
because their functions or departments were being discontinued, bravely
downsized the old-fashioned way. But this was no proof against lawsuits.
Remember Texaco, Coca-Cola and others where the very existence of
affirmative-action programs became fodder for litigation by both minorities
and older white employees?
Searching for a way out of the legal maze, Ford tried two years ago to
combine forced ranking with buyouts, aiming offers exclusively at low-ranked
employees. Result: grumbling in the hallways of "rewarding failure" and good
employees angling for low grades so they could become eligible for a golden
parachute. Finally, starting this year, Ford opted for an out-and-out forced
ranking system, which would have given 10% of white-collar employees annually
a "C" grade that meant either shape up or you're gone next year.
Microsoft, Lucent, Conoco, Enron and EDS all have used forced ranking to
maintain or improve the quality of their work forces. While many find the
idea distasteful or complain it substitutes a yearly spasm for what should be
a continuous process, at least it solves a real problem. Survey after survey
finds that even the happiest worker-bees gripe about their employer's
reluctance to get strict with poor performers. A recent McKinsey poll of
managers at big companies found that only 16% said their employer could even
recognize the difference between stars and slackers.
But Ford was already in the soup over the Explorer/Firestone fiasco. It
didn't stand a chance when the Detroit papers opened a new front over its
A-B-C grading system for 18,000 managers. Accentuating the coverage was a
simmering quest to discover any sort of rift between Mr. Nasser and his
chairman, Bill Ford, great-grandson of the founder.
Mr. Ford has somehow been anointed keeper of the company's conscience because
of blood chemistry or something. Inevitably, he wants to be liked and wants
the company to be liked. Putting a Ford in the chairmanship was probably the
worst thing the company could have done at a time when Mr. Nasser was clearly
set on giving the place a kick in the pants.
In the ranking controversy, Mr. Ford soon was reported to be "concerned about
the system's impact on morale." Notice how this differs from "the system is
an urgent necessity so Ford can become a better company." With this kind of
support, management quickly wilted in the face of pressure from the old-folks
lobby (which has appointed itself guardian of anybody over 45) and other
victim contingents.
Mr. Nasser didn't help himself by appearing in a Ford diversity video
haranguing an audience for containing "too many white faces" or by installing
rewards for executives who meet minority hiring goals. Presto, lawsuits
galore. The ones Ford will have the most trouble with are those filed by
white males claiming they were victims of age discrimination in order to make
way for blacks and women.
One of the ironies, as Ford shows, is that companies these days have reasons
of their own for recruiting minorities and women. Were the supposedly
archaic, 19th-century principle of freedom of contract still in effect --
i.e., employers are free to hire and fire at will -- there would be a lot
more affirmative action, a lot more honestly pursued.
GE may not exactly be the rainbow coalition, but it does have a lesson for
Ford. Under its version of forced rankings, 10% of managers are assigned to a
bottom grade each year, which means they're cut off from the rich booty GE
awards the top 20% and the job security of the workaday 70%. If low-ranked
managers don't improve, they are asked to move on.
A big difference, though, is that the process is not concentrated in a
single, highly neuroticized annual ritual. GE carries on with much year-round
mentoring and bellowing and measuring, so nobody has cause to be surprised by
the score he gets. In fact, anyone who went to work there in the past 15
years would have known exactly what he was getting into.
Here's the lesson: Nobody doubts that GE's hiring and firing, whatever the
color or gender of the fodder, is all about business. It takes time to build
a reputation for heartlessly focusing on the bottom line, but once you do, it
can be liberating.

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

RUSSIA: INTERVIEW-Russian Tyumen Oil says foreign ties to grow.
By Sujata Rao

07/18/2001
Reuters English News Service
(C) Reuters Limited 2001.

MOSCOW, July 17 (Reuters) - Russia's Tyumen Oil Company said on Wednesday it
planned huge expansion of its upstream and downstream profile through
ventures with foreign oil majors. Company President Simon Kukes told Reuters
in an interview that Tyumen - Russia's fourth-largest oil producer with
output of 800,000 barrels per day (bpd) - would also seek a New York Stock
Exchange listing in 2002 after market conditions improved.
"We aim to be a multi-national company and the first step is in Ukraine,
where we will within a year be the number one retailer of oil products," he
said.
Kukes said Tyumen was also interested in Eastern Europe and in talks on
projects that a included a stake in Lithuania's Mazeikiu refinery , but he
declined to elaborate.
"Eastern Europe has logistical advantages for Russian firms. We can bring in
oil easily and get a significant market share. I also see a role for us in
China, India and the Middle East." He said Tyumen, controlled by Russia's
Alfa conglomerate, saw foreign oil majors' involvement as a key to its
growth.
"We would welcome a strategic partner to take a stake in the firm and, in
fact, we are now in talks with several foreign partners, including Texaco ,"
Kukes said.
He added earlier talks with Phillips had had no result.
Tyumen is involved in the $11 billion Kovykta project with BP and several
Russian firms to produce and ship gas to China, as well as in Transneft's
Adria pipeline project to link outlets for Russian crude in north and south
Europe.
In August Tyumen will take a key downstream step.
With Texaco in Moscow it will open Russia's first Star Mart convenience store
in a partnership expanding its 800-strong filling network by combining them
with the U.S. Star Mart brand.
Earlier this year the firms inked a deal to jointly produce lubricants at
Tyumen's LINOS refinery in Ukraine. Kukes said total investments in 2001 are
planned at $800 million, with another $1 billion earmarked for each of the
coming years.
Tyumen also got a boost by being rated the World's Best Oil Company in 2000
by Financial Times Energy for "phenomenal growth in the past year, breaking
into the world's top 15 oil firms."
"By year end, we could jump from fourth to third place among Russian oil
producers," said the U.S.-educated Kukes, who is part of Tyumen's efforts to
boost its profile internationally.
VERTICALLY INTEGRATED
Tyumen is now eyeing natural gas, angling to up its Kovykta stake and in
Rospan, with 600 billion cubic metres in reserves.
Kukes sees gas as part of a strategy to develop Tyumen on the lines of Enron
- producing crude, gas and power.
"Gas is an essential component of a vertically-integrated oil company and in
the way we see ourselves in future," Kukes said. "We aim that in five years,
10-15 percent of our revenues will come from gas and condensate."
But aggressive expansion has brought Tyumen into conflict with competitors.
It has locked horns with arch-rival Interros to wrest control over a stake in
Kovykta, and its role in oil firm Sidanco - where BP owns 10 percent - has
been criticised.
"We'd like to get at least 25 percent in Kovykta," Kukes said, noting Tyumen
was keen for BP, which has a 31 percent stake, to remain project leader.
Tyumen also angered influential gas trader Itera by trying to obtain control
over its bankrupt gas producer, Rospan.
"Rospan is a profitable firm but for some reason was losing money," Kukes
said, adding Tyumen would turn the company around.

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

COMMODITIES & AGRICULTURE - Enron Metals to pay fine to LME.
By ADRIENNE ROBERTS.

07/18/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Enron Metals Limited - formerly MG - has agreed to pay a #190,000 fine to the
London Metal Exchange after EML's systems and procedures for ensuring
compliance with the exchange's rules were found to be "seriously inadequate".
With the exception of hefty fines imposed after the Sumitomo copper scandal,
this is the largest sum an LME member has yet paid. Fines for procedural
shortcomings over the past four years have been between #20,000 and #90,000.
EML is charged with "persistently" failing to ensure warrants needed to
settle exchange contracts reached the London Clearing House by the required
time. This happened between August 1999 and February this year.
The LME said EML's actions had jeopardised confidence in the exchange's
delivery mechanism, a key aspect of its business.
The exchange also found that between May 2000 and February 2001 EML
repeatedly failed to enter trades into the exchange's matching system
correctly.
In both cases "EML frequently provided explanations that were either
inadequate to explain the particular incident, or inadequate to explain the
persistence of that type of incident", said the LME.
Enron Metals, formed after Enron's purchase of UK metals trader MG last June,
said the disciplinary charges related to "operating procedures during a
period prior to, and the first months immediately following, Enron's
acquisition of MG".
The company added that Enron had now "implemented a series of measures to
tighten up existing procedures and ensure that the operating systems meet
with Enron's high standards".
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

City - Exchange fines Enron metals group #190,000.

07/18/2001
The Daily Telegraph
P35
(c) Telegraph Group Limited, London, 2001

THE London Metal Exchange (LME) has fined Enron Metals #190,000 for breaching
its compliance regulations.
The exchange said Enron Metals, a subsidiary of the American-owned energy
giant, failed to meet deadlines for delivering warrants needed to settle its
metals exchange contracts.
Warrants denote the ownership of LME-registered metal stored in warehouses.
The group also failed to input trades into the LME's system, the exchange
said.
Enron stated that the charges related to its recently-acquired MG metals
trading division before and immediately after the purchase. The group has
since "tightened up existing procedures", it said.

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

Exxon Mobil, U.A.E. Min Discuss Dolphin Gas Proj - Report

07/18/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

DUBAI -(Dow Jones)- Exxon Mobil Corp. (XOM) is interested in participating in
the $4 billion Dolphin Gas project, a plan between the UAE Offsets Group and
Qatar Petroleum to transport natural gas from Qatar to Abu Dhabi and Dubai,
the official Emirates News Agency, or WAM, reported Wednesday.
An Exxon Mobil official and the U.A.E.'s Foreign Minister, Sheikh Hamdan bin
Zayed al-Nahyan, discussed the issue Wednesday, WAM said.
The Dolphin project aims to transport two billion cubic feet a day of natural
gas from Qatar's offshore North Field to the U.A.E.
In May, Enron Corp. (ENE) sold its 24.5% stake in Dolphin back to Offsets,
freeing up its share for another potential strategic partner. Enron's role
would have been to focus on the midstream part of the project, or gas
transportation, which requires building a 350-kilometer pipeline from a
processing plant in Ras Laffan, Qatar, to the Taweelah terminal in Abu Dhabi
and Jebel Ali terminal in Dubai.
TotalFinaElf SA (TOT) is Offsets' other strategic partner, holding a 24.5%
stake in the project. The company will operate the upstream phase of the
project, which includes developing natural gas reserves in two blocks of the
North Field.
The first wells are scheduled to be drilled in the second half of 2001 and
come onstream in 2004.
Since Enron's withdrawal, Offsets has said it is talking to a handful of
international oil companies about potential participation.
Qatar Petroleum and Dolphin signed an initial agreement for the upstream
section of the project in March. A full production sharing agreement is due
to be signed in September.
In the short term, it is expected the gas will be supplied to Dolphin by
Mobil Oil Qatar's Enhanced Gas Utilization Project at the North Field.
-By Dyala Sabbagh; Dow Jones Newswires; 97150 6251228;
dyala.sabbagh@dowjones.com

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

Business
Bush switch on conservation saves credibility
David Greising

07/18/2001
Chicago Tribune
North Sports Final ; N
1
(Copyright 2001 by the Chicago Tribune)

Too bad we can't all be vice president. If we could, this whole "energy
crisis" thing would be no big deal.
We could send our heating bill to the Navy as Dick Cheney has. Who knows,
maybe we could fuel up our cars and let the Energy Department pay the bill.
Cheney is making quite a shift from the advice he offered to consumers just a
few weeks ago. "If you want to leave all the lights on in your house, you
can," he counseled. "There's no law against it. But you will pay for it."
Or, in Cheney's case, the Navy may pay for it. After all, it owns his house.
The Vice President decided to dun the Navy on the very day administration
officials spread out to promote conservation as a key part of President
Bush's energy plan.
My, how the scene has changed. In mid-May President Bush unveiled a
Cheney-authored energy plan that promoted drilling and nuking and mining but
overlooked conserving. That's when the vice president dismissed conservation
as a "personal virtue" but no energy policy.
The 170-page Bush policy did speak ominously of a growing "energy crisis."
At the time, gasoline seemed headed to $3 a gallon. Rolling blackouts
interrupted California's power. Winter natural gas prices had spiked.
Bush seemed confident he could push his energy policy through a House and
Senate dominated by Republicans.
Today, with gasoline prices down around $1.35 a gallon and the Senate under
Democratic control, Bush will have to give up on pet dreams like drilling for
liquid gold in Alaska's Arctic National Wildlife Refuge.
Conservation is all the talk--even from administration officials who can't
talk.
A laryngitis-stricken Cheney on Monday turned to wife Lynne to declare,
"Conservation is a must."
On Monday, the Energy Department declared that federal agencies since 1980
have cut their energy consumption in buildings by 30 percent.
So the world has completely changed, right?
Conservation now will become a centerpiece of the Bush energy policy. The
caribou and moose and grizzlies in Alaska can sleep easy knowing their
pristine habitat will be forever free and clear.
Isn't it obvious that President Bush's supporters at Enron and Texaco and
other oil giants should get into a more promising line of business?
And maybe the alternative-energy researchers at Argonne National Laboratory
can stop studying super-conductivity and new-age fuel cells. Energy Secretary
Spencer Abraham told them Monday that consumer conservation can cut the
energy deficit by 60 percent over the next 20 years.
Perhaps it's time to turn that big super-conducting super collider into the
world's largest Roller Derby track.
Well, maybe not.
The easing of the trumped up "energy crisis" is good news. And not just
because it won't cost nearly as much to drive to the Dells for summer
vacation.
It's good because it seems likely to bring some balance into whatever energy
policy ultimately emerges from Congress sometime later this year.
The Bush plan hasn't changed. There still are only a tiny $10 billion of
conservation measures--half of them already in place--in the gargantuan
energy program.
But the political and market realities have changed. Energy costs are down.
And conservation suddenly seems likely to get a fair hearing in Congress and
at the White House.
Perhaps most important, the free market has shown an ability to respond to a
so-called "crisis" in energy. This reduces the political pressure for a quick
and ill-advised political fix.
A sudden jump in electric-plant construction means supply should grow twice
as fast as demand over the next several years, according to the North
American Electric Reliability Council. More than 1,000 natural gas wells are
in production, double the number during early 2000.
Gas prices are lower than had been expected because OPEC has stopped cutting
production and oil giants jumped at the first sight of high prices, and
production is jumping.
We can't all turn to the Navy to bail us out of high energy prices. But in a
fix, the free market does nearly as well.
----------
Contact dgreising@tribune.com.

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

COMPANIES & FINANCE INTERNATIONAL - Energy trading unit fuels 27% leap in
Duke earnings.
By JULIE EARLE.

07/18/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Duke Energy, the US energy company, yesterday posted a 27 per cent leap in
second quarter earnings, underpinned by strong growth at its North American
natural gas and electricity trading business.
Duke, a large utility owner in the US, said after the market closed that it
earned $419m, or 53 cents a share, compared with $329m, or 44 cents a share,
in the year-ago quarter.
Revenues for the quarter increased 43 per cent to $15.6bn, from $10.9bn a
year earlier.
The result met Wall Street estimates of 49 to 58 cents a share. The
Charlotte-based company is one of several in the US accused of manipulating
electricity prices in California, along with its competitors Reliant Energy,
Dynergy, Williams and Enron.
California's grid managers have accused wholesalers of overcharging the state
by more than $6bn since last May - allegations the companies have denied.
Last night, a Duke Energy spokesman said that California remained a small
piece of the company's whole.
He said the result was driven by strong growth in its North American energy
trading segment, which reported earnings before interest and tax of $251m, a
128 per cent increase on the year-ago quarter.
The unit's growth was fuelled by big expansion in its wholesale energy asset
portfolio, which now has more than 12,600MW of merchant power generation in
operation or under construction, compared with about 8,400MW net a year ago.
Duke also has a large electric utilities operation in California.
The company's shares closed 38 cents higher at $42.03 in New York.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

Letters to the Editor: India, Pakistan and the U.S.

07/18/2001
The Wall Street Journal
A19
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Mr. Varadarajan basically asks America to abandon its traditional link to
Pakistan in favor of India. He overlooks some critical facts. First, it is
unclear whether India even wants to be closer to the U.S. Throughout the Cold
War, India was uncomfortably close to the Soviet Union in diplomatic circles,
whereas Pakistan was a reliable U.S. ally; it was vitally important in
espionage efforts against the Soviets (Francis Gary Powers departed from
Pakistan in his ill-fated U-2 and the U.S. conducted major operations there
in the 1980s) and in offsetting pro-Soviet influence in the region.
Smearing Pakistan and it current military president with Islamic
fundamentalism is disingenuous, since the nation is practically secular when
compared to its neighbors in Iran and Afghanistan. Indeed the deposed
president's paeans to fundamentalism in response to domestic problems were
one impetus for the military takeover in the first place.
Despite talk of reform, India's economy is still generally hostile to foreign
investment. The most notable business project of the 1990s, Enron's massive
power facility in Dhabol, has been mired in bureaucracy and contract
reneging.
The question of Kashmir is a difficult one, but it is important to keep in
mind that India has imposed undemocratic rule on a heavily Islamic region.
Pakistan is still strategically important and is perhaps America's best
friend in central Asia. It would be laudable for America to have good ties
with India, but not at the expense of having to turn our back on an ally.
Christian Whiton
Graduate School of Management
University of California
Los Angeles

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

Business Briefs
Houston Chronicle
London exchange fines Enron $264,000
The London Metal Exchange said it fined Enron Corp. $264,000 for "seriously
inadequate" compliance with trading rules that threatened to undermine
confidence in the largest metals market.
Houston-based Enron violated exchange rules over an 18-month period through
late delivery of warrants, documents that confirm the completion of a metals
sale, the exchange said in a statement. Enron failed to rectify its
procedures despite repeated warnings, the exchange said.
Enron's failures to comply "were repeatedly brought to the attention" of the
company between last May and February of this year, exchange officials said.
Enron admitted rules breaches in a statement, but said the violations stemmed
from its acquisition last May of MG, the world's largest copper-trading
company, for $445 million, which expanded the natural gas and electricity
trader's metals business.


FYI,

Line route and discussion at tomorrow's meeting.

LBC
---------------------- Forwarded by Lance Cunningham/NA/Enron on 04/10/2001
12:09 PM ---------------------------

"Donohoo, Ken" <KDonohoo@ercot.com> on 04/10/2001 11:36:54 AM
To: "1 ROS and others(Reliability and Operations Sub.)"  <ros_etc@ercot.com>
cc: "Jones, Sam" <SJones@ercot.com>, "Saathoff, Kent"  <KSaathoff@ercot.com>,
"Myers, Steven" <SMyers@ercot.com>, 1 System Planning
<1SystemPlanning@ercot.com>, "Almon, Brian"  <brian.almon@puc.state.tx.us>,
"Ethridge, Ed"  <ed.ethridge@puc.state.tx.us>, "Silverstein, Alison"
<alison.silverstein@puc.state.tx.us>

Subject: Paris-Anna 345 kV Line ERCOT Constraint Relief Project

Attached to this email is the Proposed Paris-Anna 345 kV Line ERCOT
Constraint Relief Project for discussion at the ROS Meeting tomorrow.

I will not be able to attend due to being out of town.? Cathey Carter and Tim
Mortensen of ERCOT System Planning will be attending in my place.? They are
looking forward to your input.??

Your cooperation in this matter is appreciated.

Kenneth A. Donohoo, PE
Manager of System Planning, Technical Operations
ERCOT
2705 West Lake Dr.
Taylor, TX 76574-2136
(512)248-3003, FAX(512)248-3082

?
 - Paris-Anna 345 kV Line ERCOT Constraint Relief Project.doc


---------------------- Forwarded by Tory Bracy/Corp/Enron on 12/13/99 05:14
PM ---------------------------

"Nyna K. Kent" <NK02@hou-metro.harris.tx.us> on 10/01/99 09:12:33 AM
To: Alina Bolua <AB02@hou-metro.harris.tx.us>, Angie Lathan
<apayne@galaxycable.com>, "Carla (Home)" <fordc@swbell.net>, "Debbie's Work"
<caruthers@studenthousing.com>, Evelyn Cherny <EC01@hou-metro.harris.tx.us>,
Irma Arevalo <IA01@hou-metro.harris.tx.us>, Tory Bracy/Corp/Enron@ENRON
cc:

Subject: obituary

> Kathy had just become a widow and needed to put an
> obituary in the paper about her late husband, Anthony.
>
> She called the newspaper and asked, "how much to put an
> obituary in the paper?"
>
> "The cost is $0.50 per word," said the newspaper editor.
>
> "Fine, please print "Bubba died."
>
> The startled newspaper editor explained that there was a
> 7 word minimum charge.
>
> Kathy thought for a moment, then said, "Okay, then, please
> print 'Bubba died. 1983 pickup truck for sale.'"
>


Larry -

I apologize if the document was not attached.  I did, however, check the
e-mail to Ed and confirmed it was attached.  Below is the version I
forwarded.  If there is a problem opening the attached or the attached not
showing up, please call Tana Jones at 713-853-3399.   She will be able to
address the problem.

I will be traveling on business for the next couple of days, but will be back
in the office on Wednesday.

Mark
Senior Counsel, ENA
Phone:     713-345-8897
Facsimile: 713-646-3940
E-Mail:      Mark.Greenberg@enron.com

	Lou Schorsch <LSchorsch@GSX.com>
	04/09/2001 12:18 PM

		 To: Mark.Greenberg@enron.com
		 cc:
		 Subject: NDA for GSX meeting

Erol Benjenk, who is the Director of Business Development at GSX, shared with
me an e-mail regarding the NDA Enron would like us to sign before we have the
meeting scheduled for April 18.  For some reason, the NDA was not attached;
and I would like our lawyers to review it.  Could you please send a copy
directly to me at lschorsch@gsx.com?  I am the CEO of GSX.  Best regards.


This order issued Friday. Click to hyperlink. Note:  Summary is attached
below and comments are due within thirty days of this order.

http://cips.ferc.fed.us/Q/CIPS/RULES/RM/RM01-9.000.TXT

 -----Original Message-----
From:  Butler, Janet
Sent: Friday, May 18, 2001 5:12 PM
To: Allegretti, Daniel; Bagot, Nancy; Benner, Martha; Bily, Donna; Blair,
Lynn; Boatman, Jack; Bradley, Rob; Branney, Theresa; Brennan, Lorna; Briggs,
Tom; Butler, Janet; Comnes, Alan; Cordes, Bill; Corman, Shelley; Culwell,
Christi; Daniel, Shonnie; Darveaux, Mary; Dietz, Rick; Dornan, Dari;
Dushinske, John; Farrell, Sharon; Fossum, Drew; Fulton, Donna; Goodpasture,
John; Hammond, Pearce; Harris, Steven; Hartsoe, Joe; Hass, Glen; Hayes,
Robert; Hayslett, Rod; Heckerman, Bambi; Hess, Theresa; Hill, Robert;
Holtzman, Staci; Hopkins, Tamara; Horton, Stanley; Huber, Lee; Janousek,
Martha; January, Steven; Kean, Steven; Kilmer III, Robert; King Jr., Frazier;
Kirk, Steve; Kissner, Tim; Lantefield, Laura; Lawrence, Linda; Lichtenwalter,
Blair; Linnell, Elizabeth; Lokey, Teb; Lowry, Phil; Mara, Susan; Martens,
Donna; McCoppin, Dorothy; McGowan, Mike W.; Miller, Mary Kay; Nacey, Sheila;
Nelson, Kimberly; Neppl, Ray; Neubauer, Dave; Neustaedter, Robert; Nicolay,
Christi; Novosel, Sarah; Paladino, Ranelle; Palmer, Maureen; Paschal, Zelda;
Patterson, Geneva; Pavlou, Maria; Petersen, Keith; Place, Janet; Pribble,
Dan; Pryor, Tony; Raker, Colleen; Rice, Randy; Ringblom, Kathy; Robertson,
Linda; Saunders, James; Sawyer, Lisa; Scott, Donna; Shafer, John; Shapiro,
Richard; Smith, Mike; Soldano, Louis; Stanton, Lon; Steffes, James; Sullivan,
Kathleen; Talcott, Jim; Taylor, Gina; Tu, Denis; Van Norden, Michael; Veatch,
Stephen; Vignaroli, Donald; Warner, Jody; Watson, Kimberly; Wilkie, Kim;
Wilson, Jane; Wilson, Rob; Winckowski, Michele; Yoho, Lisa
Subject: RM01-9 Order Proposing Reporting Requirement on Natural Gas Sales To
California Market and Requesting Comments
Importance: High

I have just received an order proposing new reporting requirements on natural
gas sales to California markets. Issued today, FERC is proposing a collection
of information (Appendix consisting of a series of questions to be answered
by sellers to the California markets, interstate pipelines and LDCs) that
will assist in understand the disparity that has occurred and continues to
exist.The information to be reported would include data relating to the
volumes and prices of sales to California including transporation rates,
daily operational capacity of pipelines to and in the California markets, and
the actual volumes flowing to and in California and gas sales and
trasnportation requirements of LDCs.

FERC intends to analyze the information and determine what percentage of the
volumes sold into California is domestically produced gas sold by marketers
affiliated with pipelnies and LDCs in sales for resales. (These are only
sales FERC can regulate). This will also give FERC the average gas costs
being incurred by purchasers moving to California.

FERC states certain entities, while not regulated by FERC, will need to
provide the information requested under the authority vested in NGA section
14 to collect information regardless of whether they are "natural gas
pipelines."

FERC is proposing that this report be submitted quarterly and submitted
within thirty days at quarter end. There will be an electronic format
developed for submission. Responses will be required to be verified under
oath. Parties may request confidential treatment of their responses.

This is being requested under emergency processing of the Office of
Management and Budget auspices. Comments are to be submitted within thirty
days of this order.

I will send the order electronically on Monday. It is not on FERC's systems
yet.


Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
----- Forwarded by Carol St Clair/HOU/ECT on 05/22/2000 09:00 AM -----

	"Wright, Andy" <awright@velaw.com>
	05/21/2000 02:05 PM

		 To: Margaux Project <margaux@velaw.com>, "Lamb, David A. (Milbank)"
<dlamb@milbank.com>, "'srivers@milbank.com'" <srivers@milbank.com>,
"'bryony.juffkins-u@db.com'" <bryony.juffkins-u@db.com>,
"'robert.mohamed@db.com'" <robert.mohamed@db.com>, "'craig.orchant@db.com'"
<craig.orchant@db.com>, "'ross.newman@db.com'" <ross.newman@db.com>
		 cc:
		 Subject: Margaux- Offering Circular

Attached is the first draft of the Offering Circular.  Please call with any
questions.

 <<Offering Memo 5.doc>>

Andrew M. Wright
Vinson & Elkins LLP
45 King William Street, 8th Floor
London EC4R 9AN, England
Phone:  (44 20) 7618-6024
Fax:  (44 20) 7618-6001
E-mail:  awright@velaw.com

 - Offering Memo 5.doc


Having spoken to Brian yesterday we need to redo his plan as most of his stuff is covered by reserves.

 -----Original Message-----
From: 	Redmond, Brian
Sent:	Tuesday, October 23, 2001 3:44 PM
To:	Kitchen, Louise
Subject:	HPL in 2002

Louise:

Some guidance on how you want to handle the ongoing HPL costs/reserve management for next year.  Specifically, there will be a number of items that roll into next year that will have to be managed. I am going with the assumption that Jim will report into Wes and will be responsible for supporting this effort.

Question:  Do you want me to assume: (i) that I have a seperate cost center for HPL and that has Jim's cost allocated to it, or (ii) should this whole effort just role up to Wes and then I can support it on an as needed basis?

I'm open to either, but my recommendation is to keep some commercial oversight over the settlement of the outstanding HPL issues.  Because, if things start coming unglued, I'm sure I will get dragged back into it anyway.

Regards,
Brian


Jeff:

Here's a draft for your review:

I suggest that the payment terms for the offshore contract require the intial
payment to be made within 7 business days of execution.  That way, we can
sign this up next week.

Kay


We're a client, so I'm assuming internally we have access codes for folks to
use.  I'm trying to get one.  Worry not; I'll track it down.  Thanks very
much for the info.

Best,
Jeff


Shirley,

I have asked Stinson to attend.

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 10/12/2000
05:14 PM ---------------------------

	From:  Kay Chapman                           10/12/2000 02:24 PM

To: Andrea Yowman/Corp/Enron@ENRON, Bob Sparger/Corp/Enron@Enron, Tim
O'Rourke/Corp/Enron@Enron, Ted C Bland/HOU/ECT@ECT, Daniel
Brown/NA/Enron@Enron, Tana Cashion/NA/Enron@ENRON, Rhonna Palmer/HOU/ECT@ECT,
Cindy Olson/Corp/Enron@ENRON, Vince J Kaminski/HOU/ECT@ECT, Kay
Chapman/HOU/ECT@ECT, Sarah A Davis/HOU/ECT@ECT, Marla Barnard/Enron
Communications@Enron Communications, Pam Butler/HR/Corp/Enron@ENRON, Michelle
Cash/HOU/ECT@ECT, Brian Schaffer/Corp/Enron@ENRON, Suzanne Brown/HOU/ECT@ECT,
Robert Jones/Corp/Enron@ENRON, Neil Davies/Corp/Enron@ENRON, Gerry
Gibson/Corp/Enron@Enron
cc:
Subject: Mission Impossible - HR Associate Groups Recommendation and next
steps

The Monday October 16, 2000 meeting at 10:00 am needs to be moved again.
Sorry for the inconvenience, but David Oxley is going to be traveling..

Thanks,

Kay


i can't wait

 -----Original Message-----
From: 	Erin Richardson <erichardson@sarofim.com>@ENRON
Sent:	Wednesday, November 07, 2001 4:29 PM
To:	Lenhart, Matthew
Subject:	RE:

i'll just come over betw. 7:30 and 8 then.  remember, you're supposed to be
getting excited.

-----Original Message-----
From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
Sent: Wednesday, November 07, 2001 3:55 PM
To: erichardson@sarofim.com
Subject: RE:

7:30 or 8.  i don't care when.

    -----Original Message-----
   From:   Erin Richardson <erichardson@sarofim.com>@ENRON
   Sent:   Wednesday, November 07, 2001 3:14 PM
   To:     Lenhart, Matthew
   Subject:  RE:

   you never told me when to come over.  so what time?

   -----Original Message-----
   From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
   Sent: Wednesday, November 07, 2001 12:33 PM
   To: erichardson@sarofim.com
   Subject: RE:

   ok sweet baby

       -----Original Message-----
      From:   Erin Richardson <erichardson@sarofim.com>@ENRON
      Sent:   Wednesday, November 07, 2001 12:29 PM
      To:     Lenhart, Matthew
      Subject:  RE:

      yeah, just charge whatever you need to.  i'll give you one of my
   credit
      cards for you to use whenever you want to also.  i'll have to think
      about
      what i want you to do.  i'll let you know.

      -----Original Message-----
      From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
      Sent: Wednesday, November 07, 2001 12:27 PM
      To: erichardson@sarofim.com
      Subject: RE:

      can i just charge the spa to your account?  so now that i am your boy
      toy
      what do you want me to do?

          -----Original Message-----
         From:   Erin Richardson <erichardson@sarofim.com>@ENRON
         Sent:   Wednesday, November 07, 2001 12:21 PM
         To:     Lenhart, Matthew
         Subject:  RE:

         alright, just called and you're all set up at the houstonian so
   you
      can
         go
         out there whenever you want to.   just let me know if there's
      anything
         else
         i can get for you.

         -----Original Message-----
         From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
         Sent: Wednesday, November 07, 2001 11:57 AM
         To: erichardson@sarofim.com
         Subject: RE:

         yeah.  just go ahead and do that.  how about the houstonian?
   youre
      the
         best.

             -----Original Message-----
            From:   Erin Richardson <erichardson@sarofim.com>@ENRON
            Sent:   Wednesday, November 07, 2001 11:43 AM
            To:     Lenhart, Matthew
            Subject:  RE:

            no problem.  instead of a golf allowance though, i think i'll
   just
         get
            you a
            membership somewhere.  wouldn't that be better?  just let me
   know
      so
         i
            can
            arrange it.

            -----Original Message-----
            From: Matthew.Lenhart@enron.com
   [mailto:Matthew.Lenhart@enron.com]
            Sent: Wednesday, November 07, 2001 11:25 AM
            To: erichardson@sarofim.com
            Subject: RE:

            sweet.  i need a golf allowance then.   i can drink beer every
      night
         and
            golf all day while you work.  that would be so sweet of you.  i
      cant
            wait
            to do that.

                -----Original Message-----
               From:   Erin Richardson <erichardson@sarofim.com>@ENRON
               Sent:   Wednesday, November 07, 2001 11:05 AM
               To:     Lenhart, Matthew
               Subject:  RE:

               you don't need to work at denny's.  you know, i make a lot
   of
         money,
               more
               than i can spend, so there's really no reason why you can't
      just
         live
               off of
               my salary for a while.  shouldn't be a problem, i usually
   just
         give
            half
               of
               it away to charity anyway.

               -----Original Message-----
               From: Lenhart, Matthew [mailto:Matthew.Lenhart@ENRON.com]
               Sent: Wednesday, November 07, 2001 10:55 AM
               To: erichardson@sarofim.com
               Subject:

               looks like i am going to work at denny's. stock is down
   about
         another
               2.50.

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

   **********************************************************************


----- Forwarded by Tana Jones/HOU/ECT on 05/30/2001 04:57 PM -----

	Aparna Rajaram/ENRON@enronXgate
	05/30/2001 04:50 PM

		 To: Kelly Lombardi/ENRON@enronXgate, Samuel Schott/ENRON@enronXgate, Bernice
Rodriguez/ENRON@enronXgate, Steve Venturatos/ENRON@enronXgate, Samuel
Schott/ENRON@enronXgate, Tanya Rohauer/ENRON@enronXgate, Tom
Moran/ENRON@enronXgate, Tana Jones/HOU/ECT@ECT, Frank L
Davis/ENRON@enronXgate, Ken Curry/ENRON@enronXgate, Nicole
Hunter/ENRON@enronXgate, Lesli Campbell/ENRON@enronXgate, Angela Y
Brown/ENRON@enronXgate, Amber Ebow/ENRON@enronXgate, Karen
Lambert/ENRON@enronXgate, Fraisy George/ENRON@enronXgate, Tandra
Coleman/ENRON@enronXgate, Wendi Lebrocq/ENRON@enronXgate
		 cc:
		 Subject: ClickPaper Approvals, 05-30-01

Please see attached.

Aparna Rajaram
Ph: (713) 345-4563
Fax: (713) 853-9476
Aparna.Rajaram@enron.com


Yes

	Ellen Wallumrod@ENRON
	12/20/2000 05:13 PM

		 To: Dan J Hyvl/HOU/ECT@ECT
		 cc:
		 Subject: Re: Petrofina Gas Pipeline Company

Dan,

I'm very impressed with your prompt reply - thank you !

The document looks good. Can we use this as a template for further buyback
confirmations ?

Rgds,
Ellen
x54099

Dan J Hyvl@ECT
12/20/2000 05:02 PM
To: Ellen Wallumrod/NA/Enron@ENRON
cc:

Subject: Re: Petrofina Gas Pipeline Company

Ellen,
 Please review the attached modified documents to see if it correctly
reflects the deal.

	Ellen Wallumrod@ENRON
	12/20/2000 02:59 PM

		 To: Dan J Hyvl/HOU/ECT@ECT
		 cc:
		 Subject: Petrofina Gas Pipeline Company

Dan,

I need your help with this confirmation please.
It is a buyback, which we currently don't confirm. However we have had a
request to send a confirmation out this time and I guess going forward we
should confirm these deals.
We haven't got a template, but I've put something together I want you to look
at and especially where it's highlighted in red, we need some legal language.
Please have a look and let me know what you think or if you need more
information, please contact me.

Thanks
Ellen
x54099


Ron,
 Here are the final versions.

 <<Enronrsp4.24.doc>>  <<FERC_Table_Def.csv>>  <<FERC_File.csv>>

Thanks
Gary

=======================================================
This email message is for the sole use of the intended recipient(s) and may
contain confidential and privileged information. Any unauthorized review,
use, disclosure or distribution is prohibited. If you are not the intended
recipient, please contact the sender by reply email and destroy all copies of
the original message.

To reply to our email administrator directly, send an email to
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 - Enronrsp4.24.doc
 - FERC_Table_Def.csv
 - FERC_File.csv


George & Larry,

 If possible,  I would like to get together in Columbus as Larry suggested.
Thursday afternoon is the only day that really works for me.
Let me know if that would work for you.  I was thinking around 2  or 2:30 pm.

I will try to email you any questions I have from the latest proforma
tomorrow.

Phillip


Please coordinate with Jane on this.  Mark
----- Forwarded by Mark E Haedicke/HOU/ECT on 01/16/2001 01:26 PM -----

	Jane McBride@ENRON
	01/14/2001 06:55 PM

		 To: Mark E Haedicke/HOU/ECT@ECT
		 cc: Alan Aronowitz/HOU/ECT@ECT
		 Subject: ISDA Electronic Document Available

Dear Mark,

As per this letter from Bob Pickel, I wonder if you (assuming you are Enron's
"Primary ISDA contact") would be able to send me our Firm ID and password
when you have a chance so that I can access the online versions of the
documents.

Thanks very much and thanks for the card.  Hoping you and your family had a
happy holiday and wishing you all the best for 2001.

Jane McBride

----- Forwarded by Jane McBride/AP/Enron on 2001/01/15 09:50 -----

	"ISDA" <cgreasley@isda.org>
	2001/01/13 12:18
	Please respond to cgreasley

		 To: jane.mcbride@enron.com
		 cc:
		 Subject: ISDA Electronic Document Available

 - cover- non pcs.doc


I saw this article on the internet and just in case someone cancels and you
need any last minute ideas...

PLANNING CREATIVE LAW FIRM RETREATS
By Daniel J. DiLucchio and Shannon Prown
Over the years, retreats have been used for a number of purposes, including
business planning, strategy development, consensus building and positioning
reassessment. While the primary function of retreats formerly was strategic
planning, law firms have discovered a variety of other reasons to hold them.
General education, entertainment, continuing legal education, management
education, personal and professional skills development and other areas of
interest to the members of a firm are some of the retreat topics in favor of
late.
Careful planning and the articulation of clear objectives are the keys to
conducting successful law firm retreats or off-site meetings. Yet, for those
responsible for planning the retreat agenda, constantly developing new ideas
is a challenge. The following table of topics is provided to assist retreat
planners in designing creative, challenging and productive programs. The
general content or concept intended, the general format of the session and
potential sources to present the program are also included. This list is not
intended to be an exhaustive account of every possible topic. The purpose is
to generate some new topic ideas.
The following chart depicts some of our latest thoughts on retreat planning.
RETREAT TOPICS

Topic
Content/Concept
Format
Source
Marketing

Role Playing
Lawyers "role-play" client presentations, judged by clients or peers
Interactive
Internal Resources or Clients
Client Presentations
Clients are invited to speak about their business environment and upcoming
legal needs
Lecture
Clients
Client Survey Results
Presentation of client survey results, possibly followed by development of
initial marketing strategies
Lecture/ Interactive
Firm Marketing Director or Consultant
Public Relations
"How to handle the press."
Lecture
Public Relations Firm or Consultant
Corporate Counsel Views/Partnering
What do corporate counsel really want from their law firm?
Lecture
Consultant or In- House Lawyer of Client
Cross-selling Services: Principles, Tools & Tactics
How to capitalize on cross- selling opportunities with the firm's client base
Lecture/ Interactive
Consultant
Entertainment

Comedian
"Professional" humor
Lecture/ Interactive
Speakers Bureau
Cartoonist
Caricatures of lawyers enacting their favorite activity/fantasy
One on One
Artist/
Cartoonist
Sports/Entertainment Figure
Popular sports or entertainment figure speaks about their experiences or a
"cause"
Lecture
Speakers Bureau
Motivational Speaker
Self-help speaker may speak on a variety of topics
Lecture/ Interactive
Speakers Bureau
Legal Education

Emerging Legal Issues
Invite a law professor to discuss emerging legal issues
Lecture
Local University, Law Professor, Speakers Bureau or ABA
Politics/
Government
Invite a local politician or government official to discuss new or upcoming
legislation
Lecture
Politician, Government Official
State of Judicial System, Judicial Reform
Invite a judge or court official to discuss the state of the judicial system
Lecture
State or Local Courts, ABA
Management Education

Alternate Billing
Discuss alternate billing methods, the pros, cons and keys to successful
implementation
Lecture/ Interactive
Consultant
Trends
Learn about trends in the legal profession, including financial, management
and business trends
Lecture
Consultant or Accountant
TQM
What are the principles of TQM? How do they apply to the legal profession?
How do you initiate TQM in your organization?
Lecture/ Interactive/Break-out Groups
Consultant or Lawyer whose firm has implemented TQM
Financial Planning
Discuss financial strategies and profitability analysis
Lecture/Breakout Groups
Financial Planner, Accountant or Consultant
Employment Issues
Discuss changing employment laws and practices, e.g., ADA, discrimination,
sensitivity training, etc.
Lecture
Labor/
Employment Lawyer, Consultant, Director of Human Resources, Law Professor
International Opportunities
Discuss current trends and opportunities in international expansion, joint
ventures and affiliations
Lecture
Consultant, Professor
Social Interaction

Myers-Briggs
Myers-Briggs or other "personality" tests can be used to heighten awareness
and understanding about co- workers
Interactive
Consultant or Psychologist
Outward Bound
Outdoors experience designed to encourage teamwork and enhance perspective
Total Participation
Outward Bound
Habitat for Humanity (or other hands-on community improvement program)
Participate in building (hands- on) low income housing
Total Participation
Habitat for Humanity, Local Church or Civic Organization
Individual Interest

Asset Accumulation Income Management
Make an investment counsellor available to meet with individuals to discuss
how to best manage their personal income
One on One
Investment Firm or Individual Investment Counsellor
Image/Etiquette
Discuss proper dress, evaluate/critique an ensemble, etc.
Interactive
Consultant
Retirement Planning
Make a retirement planner available to meet with individuals to discuss how
to plan for their retirement
One on One
Consultant, Investment Firm or Accounting Firm
Training

Delegation
Learn how to develop younger lawyers, paralegals and staff through
appropriate delegation
Lecture/ Interactive
Consultant
Stress Management
Symptoms of stress and how to eliminate/ overcome them
Lecture/ Interactive
Consultant
Rainmaking
Demonstrate how to develop personal selling skills
Lecture/ Interactive
Consultant
Teambuilding
Roadblocks to teamwork and how to overcome them to build effective teams
Lecture/ Interactive
Consultant
Time Management
Basic organizational and time management skills needed to be productive in a
busy law firm environment
Lecture/ Interactive
Consultant
Conducting Performance Reviews
How to use lawyer or staff evaluations as a strategy for mutual success
Lecture/ Interactive
Consultant
Supervisory Skills
Basic supervisory skills and how to get the desired results from those we
supervise
Lecture/ Interactive
Consultant
Technology Training
Training can be developed for research, document management or other
technology tools
Interactive
Software Representative, Computer Support Group or Technology Consultant

DiLucchio, Daniel J. and Shannon Prown. &Planning Law Firm Retreats.8 Report
to Legal Management. Altman Weil Publications, April 1994.


FYI
PL

---------------------- Forwarded by Phillip M Love/HOU/ECT on 02/26/2001
12:45 PM ---------------------------

Stacey Vallejo
02/26/2001 12:37 PM
To: Jeffrey C Gossett/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT, Darron C
Giron/HOU/ECT@ECT, Victor Guggenheim/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT,
Errol McLaughlin/Corp/Enron@ENRON, Luchas Johnson/NA/Enron@Enron
cc:
Subject: Aquila Canada Corp. deals in your books

I just came across a counterparty that needs to be flipped to the
FT-US/CAND-ERMS book for all deals in Houston books.  ECC has now signed a
Master Swap Agreement with Aquila Canada Corp., and all deals traded with ENA
and Aquila Canada Corp. need to be settled with ECC in the P& book.  These
deals are showing up in TAGG as settling with ENA, could you all please keep
an eye out for deals with this company and flip them right away.

Please let me know if you have any questions on this.

Thanks
Stacey


The past six months certainly have been challenging for all of us at Enron.  With so much change and uncertainty, stress is inevitable.  To help employees better manage stress, Enron's Employee Assistance Program (EAP) will sponsor Brown Bag sessions on Tuesday, July 9 and Thursday, July 18 from 11:30 a.m. to 12:30 p.m. in the Enron Building, EB5C2.  The group's size for each session will be limited to maximize dialogue, so register early to guarantee a seat.  If necessary, additional Brown Bag sessions will be scheduled to accommodate demand.

To register for one of the scheduled sessions, please click on the appropriate date button above.  If you have questions about the sessions, please contact Linda Hallmark at 713-345-3592.


Rusty Stevens is going to Entergy (darn, darn, darn).  I'll bet they didn't
check his references.

K-

Kathleen Carnahan
Enron North  America Corp.
1400 Smith Street, EB 3146d
Houston, TX 77002
Phone - (713) 345-3386
Fax - (713) 646-3037


Interesting  stuff....
-----Original Message-----
From: Guerrero, Gary (Corp)
Sent: Wednesday, February 28, 2001 4:14 PM
To: Anderson,  David W (Law); Gardiner, Stuart (Law); Kurz, Edward (Law);
Lindh, Frank (Law);  Locke, Richard (Law); Post, Jennifer (Law); Reid, Alice
(Law); Sampson, Keith  (Law); Witalis, Lawrence (Law); Bar-Lev, Joshua (Law);
Patrizio, Mark (Law);  Manheim, William (Law); Guardalabene, John (Law);
Metague, Stephen; Mosley,  Judi; Witmer, Deborah F; Eshbach, Shirley;
Malekos, Shelly; Risser, Roland;  Rubin, David; Haertle, Steven; Bell,
Andrew; Rothfuss, Blake; Morford, Terry;  Doran, Robert; Kozlowski, Lanette;
McLafferty, Daniel; Petersen, Kathryn; Bowen,  Bruce; Simi, Lawrence (Corp);
Forsgard, Karen; Janis, Megan Smith (Corp);  Armato, John P; Hitson, Brian J;
Faraglia, Annette (Law); Thomas, Dan (CGT Dir);  Jauregui, Robert M;
Halverson, Shaun E; PGE 830 Regulars; Chovanec, Anthony C;
'Jeff.Hitchings@gt.pge.com'; Petersen, Donald; Campbell, Benjamin; Chang,
Armando; Henri, Joseph; Myers, Joanne; Huffman, Mark (Law); Doble, Richard;
Gourley, John; Lee, Wing; Ray, Joseph; Risdon, Angela; Shiffman, Rhonda;
Soneda,  Alan; Sparks, Mike; Studley, Thomas; Zemke, William; Markevich,
Nicholas;  Heatherington, Dean; Agerter, Linda L (Law); LaFlash, Hal (Corp);
Wong, Ernie;  Hawks, Jack; O'Neill, Sean; Richardson, Bruce; Treleven,
Kathleen; Wilson,  Michelle (Law); Ludemann, Doreen (Corp);
'Harry.Singh@gen.pge.com'; Post,  Charles; Jones, Sunita; Lavinson, Melissa;
Palazzi, Marsha; Wolfgram, Steve;  Hartman, Sanford; Cahill, Jane; Meier,
Peter E.; Vincent, Shaylene; Wilson,  Chris; Sawyer, Sarah; Smith, Phil;
Eisenman, Eric; Morton, Kelly M (Law); Scott,  Eric;
'marcy.collins@gt.pge.com'; Morrison, Darcy; Candlin, Jim; Johnson,
Gerianne; Lipson, Merek (Corp); De Backer, Steven; Roscher, John; Whyte,
Daniel;  Black, Patricia (Corp); Martyn, Rick; Chan, Eileen (Corp); Low,
Ronald; Cooper,  Shawn (Corp); 'Rob.Gramlich@neg.pge.com'; Helgens, Ronald;
David, John (Corp);  Chan, Eileen (Corp); Togneri, Gabriel (Corp); Fong,
Valerie O.; David, John  (Corp); Hayes, Kathleen (Corp); Hendra, Vincent
(Corp); O'Flanagan, Joseph; Woo,  Jeannette; Cherry, Brian; IA Support Staff
(Corp); Gee, Dennis; Laszlo, Janos  John; Wan, Fong (Corp); Lubben, Sally;
Lemler, Gregg; McNeece, Christopher;  Allen, Samantha; Pidcock, Paulette C
(Corp); Stock, William; Cooper, Kenneth;  Dowling, Susan
Cc: Kline, Steven (Corp); Hapner, Dede; Peters, Roger  (Law); Herman,
Stephen; Tomcala, Karen (Corp); Document  Retention-CPUC
Subject: FERC Daily News

[IMAGE]

FERC  Daily News

February  28, 2001

?

Here is today,s FERC Daily News.? Electronic versions of the entries are
available by sending me an e-mail. For utility employees, note that a copy
of  this document is automatically sent to the PG&E-- Document
Retention-CPUC  central repository on behalf of the sender and all
recipients.

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SPECIAL  NOTE:

o????????  Chairman  Hebert Testimony:? Attached is the Testimony of FERC
Chairman Curt Hebert before the House of Representatives Subcommittee on
Energy  and Air Quality of the Energy and Commerce Committee.? His testimony
focused on natural gas  issues and the role of natural gas in national energy
policy.? The Chairman states that one of his top  priorities is to ensure
that needed energy infrastructure is built.? He pledges that he will do
everything in  his power to ensure that the Commission quickly processes
certificate  applications for new pipeline projects that bring newly
developed gas supplies  to market and which eliminate gas transportation
bottlenecks.? He does though indicate that to the  extent transportation
bottlenecks reside within state jurisdiction, the states  must similarly
undertake to improve their infrastructure.? With respect to California, he
indicated  that the Commission is responding as quickly as possible to any
applications to  construct new capacity, noting three certificate approvals
in the last seven  months for 118,000 Mcf/day.? On the  same page he exhorts
California officials to expedite considerations of  proposals to remove gas
transportation bottlenecks within the state, which he  believes contributed
to recent high prices in the Southern California area.? Touching on his boss,
theme, the  Chairman also speaks to the need for constructing a natural gas
pipeline from  the North Slope of Alaska to the lower 48 states.

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SUBSTANTIVE  ISSUANCES:

o????????  Kern  River Gas Transmission Company, and, Northwest  Pipeline,
Docket No. RP00-505-001 and RP00-506-002 (not consolidated), ORDERs ON
COMPLIANCE FILINGs (Issued February 23, 2001)? The Commission issued an Order
in  each of the Williams Pipeline Companies, proceedings limiting their
proposals to restrict customers to a pro rata distribution of partial
capacity  turnbacks.? The Commission had  required, in an earlier Order, that
the pipelines file support for their  requirement that a shipper reducing its
capacity in part do so on a pro rata  basis across all delivery points.?
Shippers had objected, and in the Order issued in response to the  Compliance
filings, the Commission firmly rejected the pro rata reduction  requirement.?
The Commission agreed  with the intervenors comments, however, finding that
Kern,s requirement for pro  rata reductions of receipt and delivery point
entitlements in capacity reduction  situations could lead to unreasonable
results, and is contrary to flexibility in  Kern,s existing tariff and
Commission policy.? The Commission specifically rejected the  pipeline,s
claim that allowing varied reductions would result in &cherry  picking,8 and
distinguished this issue from the FERC,s decision not to &enhance8  shipper
ROFR rights by allowing geographic segmentation in Order No. 637.? In the
Northwest Pipeline Order, the  Commission made a similar finding, rejecting
the pro rata restrictions proposed  also for capacity reductions. The
Commission also rejected the argument that  allowing shippers greater
flexibility would result in lost revenues and cost  shifts.? Although
Northwest may find  it more challenging to market turned-back capacity? and
unused capacity, rather than  allowing customers to maximize their use of??
existing contracts, Northwest  cannot show that it would face any immediate
loss? of revenue, FERC stated.? FERC did acknowledge that operational
problems might provide a valid objection by the pipeline.? In both cases,
because the pipelines  employed a postage stamp rate structure, the customer,
s use of flexibility in  distributing partial reductions would not reduce
pipeline revenues, the  Commission concluded.? In both  dockets, FERC
supported the pipeline,s retention of pro rata reductions in  aggregate
maximum daily  delivery obligations, accepting the explanation that the
requirement is  &to maintain historic contract relationships in reductions
situations, and to  prevent shippers from increasing flexibility under
specific contracts at the  expense of other shippers

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OTHER PROCEDURAL NOTICES and  ORDERS:

o????????  Sempra  Energy,  Docket No. ER01-1193-000, NOTICE OF FILING
(February 27, 2001)? On February 16, Sempra Energy filed  a request for
withdrawal of its February 7, 2001, Petition for Waivers, and  Blanket
approvals in its filing for market based rate authority for the  wholesale
sale of electric power and ancillary services for 50% of the output of  the
El Dorado generating plant in Boulder City, Nevada.? COMMENT DATE:? Friday,
March 9,  2001

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o????????  PJM  Interconnection,  Docket No. ER01-1286-000, NOTICE OF FILING
(February 27, 2001)  On February  20, PJM Interconnection filed a request to
amend its Operating Agreement to  waive, for this year, the requirement that
PJM retain an independent consultant  to propose candidates for the two seats
on PJM,s Board of Managers for which an  election is required at PJM,s 2001
Annual Meeting.? PJM states that the two members whose  terms are expiring
this year are willing to continue to serve on the PJM Board,  and the PJM
Members have therefore concluded that obtaining the services of the
independent consultant are not necessary.?  COMMENT DATE:? Tuesday, March
13, 2001

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o????????  New  England Power Pool,  Docket No. ER01-1289-000, NOTICE OF
FILING (February 27, 2001)? On February 20, the NEPOOL  Participants
Committee filed to terminate the NEPOOL membership of Alternate  Power
Source, as of March 5, unless APS cures its existing defaults.? The NEPOOL
Participants Committee states  that APS has suspended its participation in
the NEPOOL markets pending the  earlier of a cure of its defaults or the
effectiveness of its termination from  the Pool.? COMMENT DATE:? Tuesday,
March 13,  2001

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o????????  Alliance  Companies,  Docket Nos. ER99-3144-003, et. al., NOTICE
OF CONVENING SESSION (February 27,  2001)? In the January 24, 2001 Alliance
Order, the Commission directed parties with grandfathered contracts, whose
terms  extend beyond the transition period, to negotiate amendments or
termination of  such contracts. To assist the parties, the Commission
directed the Director of  the Commission's Dispute Resolution Service (DRS)
to convene

omeeting of the parties to explore  the use of an ADR process to foster
negotiation and agreement.? The convening session in this matter  will be
held on March 5 at FERC.?  The purpose of the convening session will be to
explore options for  renegotiating or terminating the relevant grandfathered
contracts, as directed  by the Commission.? In addition, the  meeting will
explore whether any future sessions should be held with all parties  or with
individual transmission companies and contracting parties.?

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 - hebert228.pdf
 - image001.jpg


The charge needs to be sent to Co 1202.  Tell Vera to make sure she picks up in 2002 Plan and tell the Corp group to send to Co 1202.

Thanks

 -----Original Message-----
From: 	Botello, Mary
Sent:	Thursday, September 20, 2001 2:35 PM
To:	Geaccone, Tracy
Subject:	FW: Global Employee Services Group - 2002 Plan Assumption
Sensitivity:	Confidential

	Tracy,
	Vera has confirmed that this employee is an ETS employee in Bolivia.
	Mary

 -----Original Message-----
From: 	Apodaca, Vera
Sent:	Thursday, September 20, 2001 2:27 PM
To:	Smilenova, Rositza; Botello, Mary
Subject:	RE: Global Employee Services Group - 2002 Plan Assumption
Sensitivity:	Confidential

That's correct

 -----Original Message-----
From: 	Smilenova, Rositza
Sent:	Thursday, September 20, 2001 1:20 PM
To:	Botello, Mary
Cc:	Apodaca, Vera
Subject:	RE: Global Employee Services Group - 2002 Plan Assumption
Sensitivity:	Confidential

      Mary,

      I personally do not know this individual but I am sure Vera can confirm it with Don Hawkins.

      Vera,
CLick on the file that Mary sent. The name of the employee is Patricio Puente, Quality Management, and he appears to be an expat. in Bolivia.

Thanks,
Rositza

 -----Original Message-----
From: 	Botello, Mary
Sent:	Wednesday, September 19, 2001 5:27 PM
To:	Smilenova, Rositza
Subject:	FW: Global Employee Services Group - 2002 Plan Assumption
Sensitivity:	Confidential

	Rositza,
	Do you know if this individual is in ETS EAMR?  This group works with Expat employees and they are wanting to send us costs for 2002.  Thank you.
	Mary

 -----Original Message-----
From: 	Mccall, Patti
Sent:	Wednesday, September 19, 2001 1:40 PM
To:	Botello, Mary
Subject:	RE: Global Employee Services Group - 2002 Plan Assumption
Sensitivity:	Confidential

Mary,

I don't work for the Global Employee Services Group (GES).  It was my responsibility to forward to all BU's the plan numbers that were forwarded from Tim Callahan to Agatha Tran.  The GES Group deals 100% with all Expats through out Enron.  If you onto the Internet and get into Planet.enron.com this should provide you with a better idea of what this group provides through out Enron.  According to the employee listing that Tim Callahan provided to backup plan assumptions, ETS has only one employee.  I've attached that information.

Hope this helps.

Thanks,

Patti
 << File: Active Expats 01-0821_TCallahan_09072001_ETS.xls >>

 -----Original Message-----
From: 	Botello, Mary
Sent:	Tuesday, September 18, 2001 3:27 PM
To:	Mccall, Patti
Subject:	FW: Global Employee Services Group - 2002 Plan Assumption
Importance:	High
Sensitivity:	Confidential

	Patti,
	I have not received a response.  We need additional information regarding these expenses for 2002.  We will be finalizing our plan next week (Wednesday) for presentation to Management.  If we are not comfortable that these are valid expenses we will not be able to include them or accept them in next year's budget.  Thank you.
	Mary

 -----Original Message-----
From: 	Botello, Mary
Sent:	Monday, September 10, 2001 1:27 PM
To:	Mccall, Patti
Subject:	FW: Global Employee Services Group - 2002 Plan Assumption
Importance:	High
Sensitivity:	Confidential

	Patti,
	I work with Tracy Geaccone in ETS.  Can you provide us some detail about the services provided to ETS by your group?  Also, which cost center will you use to send us these charges?  Thank you.
	Mary

 -----Original Message-----
From: 	Geaccone, Tracy
Sent:	Sunday, September 09, 2001 10:21 AM
To:	Botello, Mary
Subject:	FW: Global Employee Services Group - 2002 Plan Assumption
Importance:	High
Sensitivity:	Confidential

Are there any charges to ETS, EREC, PGG,PGE, EOTT?

 -----Original Message-----
From: 	Mccall, Patti
Sent:	Friday, September 07, 2001 4:39 PM
To:	Smith, Jeff E.; Killen, Faith; Copeland, Erin; Nelson, Kimberley (EES); Lee, Dana; Davoli, Jim; Galvan, Michael S.; Geaccone, Tracy; West, Terry; Derr, Dawn
Cc:	Tran, Joanne; Tran, Agatha
Subject:	Global Employee Services Group - 2002 Plan Assumption
Importance:	High
Sensitivity:	Confidential

Attached is the 2002 Plan Allocation Assumption by BU regarding the Global Employee Services Group.  I've also attached the employee listing in case you have any questions as to who makes up your numbers.  The information was provided by Tim Callahan.

Thanks,

Patti
 << File: 2002 GES Budget Alloc to BU's.xls >>  << File: Active Expats 01-0821_TCallahan_09072001.xls >>


USA: Northwest preparing $1.8 bln offer for Portland.
Reuters English News Service, 10/05/01
Energy Security Concerns On Congressional Front Burner
Dow Jones Energy Service, 10/05/01
USA: CORRECTED - Future of US power grid at stake in Supreme Court case.
Reuters English News Service, 10/05/01
BRAZIL: Brazil readies guarantees for electricity sales.
Reuters English News Service, 10/05/01
Brazil To Guarantee Contracts In Wholesale Power Market
Dow Jones International News, 10/05/01
USA: UPDATE 1-Northwest Natural in talks to buy Portland GE.
Reuters English News Service, 10/05/01

Enron in Talks to Sell Portland General to Northwest (Update6)
Bloomberg, 10/05/01

USA: Northwest preparing $1.8 bln offer for Portland.

10/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 5 (Reuters) - Northwest Natural Gas Co is in the final stages to make an offer of $1.8 billion to buy Portland General Electric Co from Enron Corp in a deal that would bring the two Oregon-based utilities together, sources familiar with the situation said.
They told Reuters that Northwest was offering a mixture of cash and stock and would also take on an additional $1.0 billion of debt, stamping an enterprise value of $2.8 billion on the assets.
The board of Northwest was still to vote on the deal but sources said the deal could be announced as early on Monday.

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

Energy Security Concerns On Congressional Front Burner
By Bryan Lee

10/05/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

OF DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Congressional passage of energy policy legislation is unlikely to happen this year as energy infrastructure security has jumped to the forefront as a priority concern after Sept. 11, according to key House and Senate lawmakers.
"I'm not sure there'll be a bill this year," said Sen. Jeff Bingaman, D-N.M., chairman of the Senate Energy and Natural Resources Committee.
It will be too difficult to reach agreement on the issues involved in passing a comprehensive energy policy bill and still get the measure through conference committee and to the president's desk before Congress adjourns this fall, Bingaman told an industry-sponsored forum this week.
Bingaman has slated a hearing on energy infrastructure security for Tuesday, and plans to move legislation on the subject separately from the energy-policy bill. In advance of next week's hearing, Bingaman has solicited comments from leading energy industry groups.
"The priorities have changed since Sept. 11," said Rep. Joe Barton, R-Texas, chairman of the House Energy and Air Quality Subcommittee. "The energy security issue is now paramount," he said.
Barton announced this week that he wouldn't launch a campaign next year for the Senate seat being vacated by Phil Gramm, R-Texas. The decision stemmed in part from a desire to stay at the House Energy and Commerce Committee panel he chairs to work on energy infrastructure concerns.
Congress will pass energy-policy legislation next year and focus on energy infrastructure security this year, Barton said, citing the threat to power plants, transmission lines, and natural gas and oil pipelines.
The two legislators spoke at an energy forum this week sponsored by Enron Corp. (ENE), entitled "Energy Policy at a Crossroads."
The priority on infrastructure security was applauded by John M. Derrick, Jr., chairman and chief executive of Potomac Electric Power Co. (POM).
"We in the industry are concerned about an energy hit on our infrastructure," Derrick told the two lawmakers.
That concern is well-founded, according to James R. Schlesinger, who in past administrations headed the departments of energy and defense, and the Central Intelligence Agency.
"Our electric power grid is particularly vulnerable," Schlesinger said, particularly citing the threat from "information warfare."
Schlesinger's warning was borne out the week after Sept. 11. The North American Electric Reliability Council, the industry group that coordinates power-grid reliability, reported last month its telephones and other communications were temporarily knocked out during a flurry of computer virus attacks.
With the onset of increasing wholesale power market competition, the U.S. power grid is operating at a much higher capacity than ever before, making it vulnerable to physical or electronic attack, said Schlesinger.
This risk has been compounded since competition has "weakened the incentive" for utilities to make needed investment in transmission infrastructure, Schlesinger said.
House Panel Acts On Nuclear Security

While Bingaman's committee prepares to tackle the issue beginning next week, the House Energy and Commerce Committee took a first stab at the issue this week.
On Wednesday, as part of a package of three antiterrorism bills, the panel adopted legislation making sabotage at a nuclear power facility a federal crime and authorizing plant security guards to carry weapons and make arrests.
The committee adopted an amendment sponsored by Rep. Edward Markey, D-Mass., requiring the U.S. Nuclear Regulatory Commission to undertake a comprehensive rulemaking to revise its power-plant security regime.
"As terrible as the attacks of Sept. 11 were, a successful terrorist assault on a nuclear power plant could result in a full-scale nuclear core meltdown and breach of containment that could result in countless more deaths and injuries," said Markey, who opposes nuclear power.
The NRC previously announced it is undertaking a top-to-bottom review of its security requirements in light of the Sept. 11 attacks. "As decisions are made, they will be implemented," said NRC spokesman William Beecher, who otherwise declined to comment on the House action, which is under review by the agency.
The Nuclear Energy Institute, the industry's trade group, criticized the House action as a rash response to the Sept. 11 attacks. Nuclear power plant security issues should be addressed as part of an overall effort to secure U.S. energy infrastructure, NEI said.
"We believe the security issue has to be addressed in a comprehensive and thoughtful way. That wasn't done Wednesday," said John Kane, NEI's vice president for governmental affairs.
Kane also called for Congress to firmly delineate the responsibilities of the federal government and industry in securing nuclear power plants against attack. It isn't appropriate for private industry to respond to threats from enemies of state, he said.
Bingaman, the Senate chairman, said Wednesday that, while he supports federalizing airport security, he believes that nuclear power plant defenses should remain the responsibility of the industry.
-By Bryan Lee, Dow Jones Newswires; 202-862-6647; Bryan.Lee@dowjones.com

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

USA: CORRECTED - Future of US power grid at stake in Supreme Court case.

10/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

In Oct. 3 WASHINGTON story headlined "Future of US power
grid at stake in Supreme Court case" .... please read in
paragraph 9.... Industry lobbying group Electric Power Supply
Association filed court briefs supporting Enron's position,
while Edison Electric Institute filed in support of FERC ...
instead of ... Industry lobbying groups Edison Electric
Institute and Electric Power Supply Association filed court
briefs supporting Enron's position ... (corrects Edison's
position).
A corrected repetition follows.
By Chris Baltimore
WASHINGTON, Oct 3 (Reuters) - With billions of dollars at stake in the electricity market, lawyers for Enron Corp urged the U.S. Supreme Court on Wednesday to uphold federal regulators' obligation to drive open competition on the nation's transmission grid.
The nation's highest court heard oral arguments in the case which could have sweeping implications for the $220 billion U.S. electricity market.
The Supreme Court's ruling could either open the U.S. transmission grid to retail competition, or limit open markets to just the wholesale realm.
A decision is expected later this year or early in 2002.
"It's billions and billions of dollars at stake" for energy firms, said an industry source. "A ruling could expand existing open wholesale markets to the retail level."
The case is on appeal from the U.S. Appeals Court for the District of Columbia, which upheld FERC's authority to regulate state transmission in a June 2000 ruling.
NEW YORK SAYS FERC WENT TOO FAR
Enron - the largest U.S. wholesale power player and an ardent proponent of open markets and nationwide deregulation - argued the Federal Energy Regulatory Commission should have authority to force competition of all transmission assets.
FERC should expand its authority beyond wholesale markets and states that have deregulated retail markets, Enron says.
"You need a set of rules of the road that apply to everybody," said Enron attorney Louis Cohen. Industry lobbying group Electric Power Supply Association filed court briefs supporting Enron's position, while Edison Electric Institute filed in support of FERC.
Meanwhile, in a separate companion case, the state of New York argued FERC went too far in regulating flows of electricity within the state.
"This is an example of an agency that has overstepped its bounds," said Lawrence Malone, general counsel for the New York State Public Service Commission.
New York wants the court to revoke FERC's authority to regulate retail sales, because electricity involved in such sales stays within state boundaries and is not subject to federal regulation.
"We now have two hands on the retail wheel and it doesn't work," Malone told the court.
Stuck squarely in the middle is FERC, which derives its mandate from an interpretation of the Federal Power Act of 1935.
FERC ORDERED OPEN ACCESS
At issue is Order 888, which FERC approved in 1996 after it found that transmission-owning utilities have an inherent incentive to bar access to their wires by competing companies.
The order essentially opened the grid to wholesale competition by forcing utilities to offer nondiscriminatory policies to energy firms that want to ship electricity over non-owned transmission lines.
New York argues that FERC's 1996 order oversteps state authority over intrastate commerce set in the 1935 law, while Enron asserts FERC did not go far enough and needs to expand its authority to both retail and wholesale markets.
Because of the interwoven nature of the transmission grid, electricity that flows within state boundaries cannot be distinguished from power that flows from state to state as a result of wholesale sales, Enron's Cohen argued.
All of the electricity is competing for space on the grid, and Enron wants FERC to step in to prevent state utilities from "being able to hog those sites for their own use and keep us off the road," Cohen told the court.
The Supreme Court justices' leanings on the case were unclear from oral arguments, where they questioned lawyers on interpreting the 1935 act.
At least one justice found the intricacies of electricity transmission mechanics daunting.
"It's not like putting water through a dam," said Justice Stephen Breyer. "I don't even know how this works."

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

BRAZIL: Brazil readies guarantees for electricity sales.
By Denise Luna

10/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

RIO DE JANEIRO, Brazil, Oct 5 (Reuters) - Brazil is preparing a set of rules to guarantee electricity sales from new thermoelectric plants at market prices in order to get these plants working as soon as possible amid a power crisis.
The head of the government's task force for the electricity crisis, Pedro Parente, told reporters on Friday the rules would be published next week and would include government funds to back sale guarantees for the so-called merchant plants.
The government of Latin America's largest country regulates electricity prices. Analysts say this system stymies investment in the energy sector, especially in the much-needed natural gas-fired plants, as returns cannot be guaranteed.
Most of Brazil's natural gas is imported, and its price in local currency terms grows higher when the real depreciates against the dollar. So far this year, the real has lost about 30 percent of its value.
"We can't have these plants standing idle while the country needs energy," Parente said, citing the example of a plant finished by U.S. energy giant Enron Corp. last month, which is not operating due to a lack of contracts at market prices.
Brazil needs gas-fired plants as it struggles to reduce its dependence on hydroelectric stations. Two years of droughts have dried up water reservoirs at these plants triggering this year's acute power shortage, which forced the government to impose tough power rationing from June.
There is a virtual Wholesale Electricity Market (MAE) in Brazil, but it only quotes prices for electricity and has never seen a single contract struck due to high prices there and existing contracts between generators and distributors.
Now, the government's Brazilian Emergency Energy Sales (CBEE) entity, should provide contracts for the new plants at attractive prices taken from MAE.
The government expects 10 power plants with a total capacity of 2,153 megawatts to become operational by March 2002, which should boost the total generation capacity of some 70,000 megawatts.
Apart from Enron's, a plant built by U.S.-based El Paso Corp. is also ready to start producing energy.
The head of Brazil's National Development Bank (BNDES), Francisco Gros, pointed out the financial guarantee would have a limit, which is yet to be established.
Gros also acknowledged that the electricity tariffs would have to be reviewed to take into account losses by power utilities since the start of rationing as well as prices to be charged by new power stations.
"We are thinking of a differential hike which can occur gradually, so that it doesn't hit the pocket so much," he said, explaining that the losses from lower power consumption totaled 20 percent of revenues on average.
Gros also said the bank had enough resources to finance investment projects in the electricity sector and boost the offer of power.

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

Brazil To Guarantee Contracts In Wholesale Power Market

10/05/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

RIO DE JANEIRO -(Dow Jones)- The Brazilian government will intervene in the virtually nonexistent wholesale energy market, known as MAE, by paying new merchant power generators in advance for their contracts, top officials said Friday.
The decision is valid for independent power generators such as Enron Corp's (ENE) Eletrobolt facility and El Paso Corp.'s (EPG) Macae Merchant unit, which couldn't sell the energy they started producing due to regulatory problems on the MAE.
According to the government's emergency plan to generate more power, these plants were supposed to sell their electricity on the free market according to their concession licenses.
"The MAE isn't working and these power plants can't sell the electricity which is already available," said Francsico Gros, president of Brazil's Development Bank BNDES, who is heading a commission to come up with a new model for the nation's troubled power sector. "This is a serious problem which is hurting energy supply when we need all the electricity we can get."
Gros said more than 2,000 megawatts of new electricity are "waiting to be sold" but hasn't reached distributors because there hasn't been any trading on the MAE.
A recently-created state-run company, called CBEE, will be responsible for settling the contracts for this energy. A percentage of the value of the contract will be paid up front by Brazil's Treasury to guarantee to generators that the contracts will be honored.
The government will also establish a ceiling price for contracts. Currently, the price set for power trading at the MAE was 364.00 reals ($1=BRR2.737) per megawatt/hour.
In late August, the Brazilian government had already announced it would start buying electricity from independent generators to sell to distributors as an emergency measure aimed at easing the effects of a power crunch and guaranteeing some power supply over the short term.
The emergency measures come after the apparent failure of MAE, which kicked off about a year ago with the promise to create a new framework for transactions between power generators and distributors.
But regulatory problems robbed MAE of credibility, and the innovative electronic exchange system that was especially designed for the power exchange and was supposed to regulate energy trading, wasn't used at all.
Gros said the government is working to restore confidence in MAE by creating more transparent rules for trading on the free energy market.
"MAE is an essential part of our plan for Brazil's energy sector model," he said.
South America's biggest economy is facing an unprecedented energy crisis after inadequate investment in the past few years and a drought this year that left water reservoirs at record-low levels.
Brazil is more than 90% dependent on hydroelectric plants for the electric energy it consumes. An energy-rationing plan was implemented in June to cut electricity use by an average 20% per month.
-By Adriana Brasileiro, Dow Jones Newswires; (5521) 9965-1193,
adriana.brasileiro@dowjones.com

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

USA: UPDATE 1-Northwest Natural in talks to buy Portland GE.

10/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

NEW YORK, Oct 5 (Reuters) - Northwest Natural Gas Co. on Friday said it was discussing the acquisition of Portland General Electric Co. from Enron Corp., a deal that would bring together two Oregon utilities.
The Wall Street Journal said a purchase price of $1.8 billion in cash and stock was being discussed and that Enron would end up with a stake in Northwest. Northwest would also assume $1 billion of debt, it said.
The deal would combine the gas and electric utilities serving Portland, Oregon.
Northwest shares were down $2.99, or 11.5 percent, at $23 in morning trade on the New York Stock Exchange, giving up gains totaling $2.89 over the three previous sessions.
Enron shares were up 25 cents at $33.35.
In a brief statement, Northwest said it was confirming the talks with Enron in response to press reports. It said there was no assurance that a deal would be struck and it would not make any additional comments on the matter unless and until a formal agreement was reached.
The Wall Street Journal described the talks as advanced. Citing people familiar with the matter, it said the discussions were at a delicate stage and financing could be a problem for Northwest, which had a market value of only $655.5 million based on Thursday's closing stock price of $25.99.
News of the talks did not surprise UBS Warburg analyst James Yannello, who said Enron has made no secret of its desire to divest Portland GE, which serves more than 725,000 customers in northwest Oregon. Enron, an energy marketing and trading powerhouse, acquired Portland GE in July 1997 for stock valued at $2.1 billion.
Northwest, doing business as NW Natural, is a gas distribution utility serving more than 500,000 customers throughout Oregon and Vancouver, Washington. On Friday the company raised its quarterly dividend for the 46th year in a row.
ENRON SEEN RECEPTIVE TO STOCK
On the possibility that Northwest might have trouble financing a deal, Yannello said that in the past Enron has been receptive to accepting stock.
He believes Enron "is taking a very close look at all of its assets," and he sees several similar announcements over the next few months.
Portland GE, a power generator and distributor, had 2000 revenues of $2.25 billion. Its 2001 first-half revenues rose to $1.6 billion from $827 million a year earlier, and net income increased to $71 million from $63 million.
Portland GE pays Enron dividends totaling $20 million each quarter.
Portland GE was founded in 1889, delivering power to the city of Portland from the Willamette Falls, 14 miles away on the Willamette River - the first long-distance transmission of electricity in the United States.
The company owns eight hydroelectric plants with a total capacity of 615 megawatts. It also has a 65 percent interest in a coal-fired power plant in Boardman, Ore., and a 20 percent stake in a Colstrip, Montana, power plant. These interests, along with 742 megawatts of gas-fired power plants in Clatskanie and Boardman, Oregon, give Portland GE total generation capacity of 1,399.9 megawatts.

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

Enron in Talks to Sell Portland General to Northwest (Update6)
2001-10-05 16:09 (New York)

Enron in Talks to Sell Portland General to Northwest (Update6)

     (Adds closing share prices in ninth and 13th paragraphs.)

     Houston, Oct. 5 (Bloomberg) -- Enron Corp. may sell Portland
General Electric Co. to Northwest Natural Gas Co., another Oregon
utility, as part of a plan to shed slow-growing businesses and
focus on commodities trading.

     Northwest said the companies are in talks, though an
agreement isn't assured. The negotiations come more than five
months after the sale of Portland General to Sierra Pacific
Resources collapsed. Enron spokesman Mark Palmer wouldn't comment.

     Enron has been trying to sell Portland General for about two
years. Houston-based Enron, once mainly an operator of natural-gas
pipelines, has transformed itself into the biggest trader of
electricity and gas, a business that doesn't require ownership of
expensive assets such as power plants and pipelines.

     Portland General ``is regulated, and it's really slow growth,
so it doesn't fit in with what Enron's trying to be,'' said Tara
Gately, an analyst with Loomis Sayles & Co., which holds about
135,000 Enron shares.

     The Wall Street Journal today reported that the two companies
are negotiating a sale price of $2.8 billion in cash, stock and
assumed debt. Enron bought Portland General in 1997 for $3.1
billion in stock and debt.

     The utility's earnings are forecast to rise 1 percent next
year, said analyst Robert Christensen of First Albany Corp.

     By comparison, Enron's profit from buying and selling
commodities such as energy, lumber and steel is increasing 25
percent a year as more markets open to competition, said
Christensen, who rates the shares ``strong buy'' and owns them.

     ``It would just be a positive to get (the Portland General
sale) done and use the cash for other businesses,'' Gately said.

     Enron shares fell $1.37, or 4.1 percent, to $31.73.

     Enron stock has declined 62 percent this year, mostly because
of the resignation of Chief Executive Jeff Skilling, concerns
about the California power market, losses at its bandwidth-trading
business and an electricity-contract dispute in India. The stock
dropped even as Enron said second-quarter earnings rose 40 percent
to $404 million while revenue almost tripled to $50.1 billion.

     Sierra Pacific canceled its proposed $3.1 billion acquisition
of Portland General on April 26 because California's energy crisis
made it too hard to win approval. Legislators banned sales of
power plants serving the state, blocking Sierra Pacific from
selling a stake in a generating plant, needed to win clearance for
the deal.

     ``It's a difficult regulatory environment,'' said Bern
Fleming, manager of the $2.4 billion AXP Utilities Income Fund,
which holds about 300,000 Enron shares. ``I wonder if someone in
that region might handle it better.''

                         Northwest

     Northwest shares fell $2.58, or 9.9 percent, to $23.41,
cutting its market value to about $588 million. The company, based
in Portland, Oregon, would take on about $1 billion in debt with
the purchase, the Journal said.

     Bond rating company Egan Jones lowered its credit rating on
Northwest to ``A-'' from ``A,'' still investment grade. Northwest
already has about $450 million in debt, Egan Jones said.

     Other terms of the transaction need to be completed, and an
agreement may be announced in a few days, the Journal reported.

     Northwest serves more than half a million Oregon and
Washington customers. Richard Reiten, Northwest's chairman and
chief executive, was president of Portland General from 1989 to
1996.

     At a price of $2.8 billion, Northwest would be paying 1.2
times sales, less than the average of four times revenue paid for
U.S. utilities this year, Bloomberg data show.

     ``It sounds like the transaction would result in Enron
retaining a minority stake,'' said Andre Meade, an analyst at
Commerzbank Securities Inc. who rates Enron ``accumulate'' and
doesn't own the stock. ``It may be that Northwest can only finance
a portion of the buy at this stage.''

     Oregon regulators likely will approve the transaction if
Northwest shows that its service and rates will stay the same,
Meade said.

     The acquisition would allow Northwest to negotiate better gas
prices by increasing the amount of the fuel that it buys, he said.
The company may also be able to cut costs through job cuts and
eliminating duplicate services.

     Northwest said in July that second-quarter profit more than
doubled to $4.3 million as weather cooled and the company added
customers.

                    California Platform

     Enron acquired Portland General, which has more than 700,000
customers in Oregon, as a platform to sell power into California's
deregulating market.

     Since then, Enron has moved away from owning assets such as
power plants and pipelines to concentrate on energy trading. As
part of that shift, Enron this week agreed to sell oil and gas
fields in India to the U.K.'s BG Group Plc for $388 million.

     Portland General gave Enron experience with the electricity
market and utility regulations, and helped the company develop its
power-trading business, Loomis Sayles's Gately said.

     Sierra Pacific, based in Reno, Nevada, agreed to buy Portland
General in November 1999. To win regulators' approval of the
acquisition, Edison International's utility had to agree to sell a
stake in a Nevada power plant also owned by Sierra.

     California banned power-plant sales by the state's utilities
because of its power shortage, blocking the Nevada sale. Enron
said at the time that it wouldn't rule out trying again to sell
the utility.

     ScottishPower Plc, the U.K.-based owner of the northwestern
U.S. utility PacifiCorp, considered a bid for the utility, the
Observer newspaper reported in April.


Gerald:

I checked my computer and couldn't find any evidence of the files on my hard
drive; however, I did find two diskettes that, at first glance, appear to
contain the same documents, some of which look like they might be the
finals.  If you'll email your street address back to my assistant, April
Williams, at awilliams@br-inc.com, we can have the diskettes sent to you via
courier.  You can take a look at them and see if in fact they are identical
and have the information you need on them.  If you find them to be exactly
alike, just send one back to me for safekeeping here.

Thanks!
Lori


Rick/Jim -- I have made the changes noted below.
Jim -- I spoke to Terrie Bosien, HR Generalists for the A/A group, and I've
left you a voice mail regarding the PRC representation of the A/A in
Government Affairs and Public Affairs.  Call me next week when you return to
discuss.

If there's anything else that needs attention, please let me know.
Thanks.
Jo Ann

 -----Original Message-----
From:  Steffes, James
Sent: Tuesday, May 15, 2001 4:41 PM
To: Hill, Jo Ann
Cc: Shapiro, Richard
Subject: PEP Issues

Jo Ann --

Some issues

1. Margaret Carson is still on my list.  She retired. [Jo Ann Hill]   -
Marked as "Inactive" in PEP.  She should no longer show on your list.

2. Who has Jennifer Thome? [Jo Ann Hill]   Rick was listed as Jennifer's
supervisor.  I have changed to Jim.

3. Who has Alberto Levy? [Jo Ann Hill]   RIck was also listed as Alberto's
supervisor.  I have changed to Jim.

Thanks,

Jim


Vincent,

I enjoyed meeting with you yesterday and discussing our Gas & Power
Marketing & Trading Study.  We really hope that Enron is able to participate
this year and we will work with you to address your concerns.  I believe
that the problem last year was primarily due to concerns over releasing data
in general and not our study in particular.

I am attaching an electronic copy of the latest version of the input sheet
for the study.  It is far easier to read on a computer than in print.
Please remember that Enron does not need to answer every question to
participate and that all results are reported back in a blinded format.  The
only data points identified by company are the data points for the company
values of the company receiving the report.

If you have any further questions regarding the report, please do not
hesitate to call John Stephenson or myself at (713) 523-8001.   Have a great
weekend and thank you for your efforts to enable Enron to participate in
this year's study.

Sincerely,

Richard Murphy
rmurphy@navigantconsulting.com
(713) 523-8001

 - 2000 Input Sheet.xls