Ben - although my role is changing inside Enron, you know I will always help
you as requested/required.  I am discussing this particular situation with
Keith Dodson inside the newly formed EEAS  - we will call you to discuss.

Things I think/recommend should happen regardless:

1)  Your idea of a coordination meeting is good.  The combined efforts of our
teams....., taking 7 months to get the generator uncrated and inspected...,
is not spectacular.

2)  I think that ........, in the right way........, we need to insure that
if anyone asks Janet Dietrich or Delainey whether we were impeded on the
Electrocities project, and......, whether we would really be willing to
litigate a claim based on that..... I want to make sure our answer doesn't
change.  Don't take that the wrong way, but......, I believe there are people
inside ENA and the old EECC that have rolled their eyes in front of
Westinghouse regarding our claim for LD's.  I don't think we have
Westinghouse believing we were impeded (because the Enron team isn't
convinced).  Westinghouse's cooperation might be different if they sincerely
believed that Enron was "impeded".  Kay Mann's input that Enron was really
impeded weighs strong on my mind (I put a lot of weight in Kay's opinions).
If you could get that clarified/reinforced/defined at that level......, we
can insure we are on solid ground in talking w/ Westinghouse.  Kay makes a
good point that it doesn't matter what "...the team believes....".  I
politely disagree and feel that if we convinced ourselves.......,
Westinghouse's cooperation might change.

3)  I think that Kay (and John Schwartzenburg's team if Kay desires) should
advise if any official notifications should be made to Westinghouse (e.g., we
haven't really ever formally "rejected" delivery.... maybe we want to rely on
the correspondance that has evolved, and...... a new letter now would weaken
our case..... but....., I believe you would want Kay (and maybe John if Kay
desires) to advise if any such notification could strengthen our position.  )

Keith and I will call.

Fred Kelly

Phone     713-646-6207
Mobile     713-851-9172


Jeff,

Here is the int'l dial # for this call:

703-736-7385

Also, Rick knows you are on vacation this week (no charge!)

gngr
713-853-7751

	Jeff Dasovich
	Sent by: Jeff Dasovich
	03/28/2001 09:04 PM

		 To: Ginger Dernehl/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron
		 cc:
		 Subject: Re: Campaign Leadership Call "Mandatory"

Rick:

My apologies.  The family events here in Mexico have conflicted with the
calls.  But I will be on the call tomorrow.  (Anything to save $25!)

One thing. I'm not sure that I can dial into an 800 number here in Mexico.
Ginger:  Could I possibly call you at 4:30 and have you conference me in to
the 800 number?

Best,
Jeff

	Ginger Dernehl
	03/28/2001 11:46 AM

		 To: Mark Palmer/Corp/Enron@ENRON, James D Steffes/NA/Enron@Enron, Janel
Guerrero/Corp/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Jeff
Dasovich/NA/Enron@Enron, Howard Fromer/NA/Enron@Enron, Joe
Hartsoe/Corp/Enron@ENRON, Linda Robertson/NA/Enron@ENRON, Richard
Shapiro/NA/Enron@Enron, Susan M Landwehr/NA/Enron@Enron, Daniel
Allegretti/NA/Enron@Enron
		 cc: Cindy Derecskey/Corp/Enron@Enron, Marcia A Linton/NA/Enron@Enron, Linda
J Noske/HOU/ECT@ECT, Lysa Akin/PDX/ECT@ECT, Joseph Alamo/NA/Enron@Enron,
Bernadette Hawkins/Corp/Enron@ENRON, Lora Sullivan/Corp/Enron@ENRON, Terri
Miller/NA/Enron@Enron, Ginger Dernehl/NA/Enron@Enron
		 Subject: Campaign Leadership Call "Mandatory"

Message from Rick:

The Campaign Leadership Call, which takes place daily at 4:30pm CST, is
"Mandatory".  If you are unable to attend, it will be necessary for you to
have someone participate on the call in your behalf.  Please notify Rick or
myself,  if you are unable to participate and let us know who will be
participating for you.  A fine of $25.00 will be assessed to those who do not
participate or have someone participate for them.  The monies collected will
go to a charity of the group's choice.

Thanks and please don't hesitate to call me if you have any questions.

gngr
713-853-7751


Sorry, Mike.  Just got this.  Will try to turn it around pronto.  Our guy
John Neslage is trying to pull together exactly what you're requesting.
He'll get it to you as soon as we've got it pulled together.

Best,
Jeff

	Mike D Smith@EES
	02/20/2001 10:53 AM

		 To: Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: Current Legislation

Jeff--can you send me asap  a real quick message listing all of the current
"X" legislation that is out there that we are following, along with a brief
description of what each bill is about and whether we support or oppose.
That will help me keep track of the alphabet soup.  Thanks.  MDS


-----Original Message-----
From:  navigator@nisource.com@ENRON
[mailto:IMCEANOTES-navigator+40nisource+2Ecom+40ENRON@ENRON.com]
Sent: Thursday, May 17, 2001 4:08 AM
To: navigator@nisource.com
Subject: CAPACITY UPDATE EFFECTIVE FOR MAY 18, 2001

                      COLUMBIA GAS TRANSMISSION CORPORATION
                        NOTICE TO ALL INTERESTED PARTIES
                                  MAY 17, 2001

Notice ID: 2735
5 - NO RESPONSE REQUIRED

                 CHANGES ARE INDICATED WITH AN *

Effective Friday, May 18, 2001, capacities will be as follows:

Excess MDWQ            Available +
ISS Withdrawals        Available
SIT Withdrawals        Available
Imbalance Drawdowns    Available
Pal Lends              Available

Excess MDIQ            NOT Available +*
ISS Injections         NOT Available  *
SIT Injections         NOT Available  *
Imbalance Paybacks     NOT Available  *
PAL Parks              NOT Available  *

+ Call Gas Control 24 hours in advance at (304) 357-2606 to request approval.

Receipt capacity will be as follows:

TENNESSEE:

Brinker (B12)            20,000
Broad Run (B9)          450,000
Cambridge (B10)          10,000
Dungannon (B11)          40,000
Highland (B17)           25,000
Milford (B18)            30,000
North Greenwood (B22)    10,000
Unionville (B15)         75,000

TEXAS EASTERN:

Delmont (C16)                 0
Eagle (C22)              30,000
Hooker (C9)              25,000
Pennsburg (C23)          50,000
Windridge (C12)          60,000

NATIONAL FUEL:

Independence (M1)        10,000
Ellwood City (L1)        10,000

TRANSCO:

Downingtown (E3)          5,000
Emporia I (E13)         120,000
Rockville (E2)           65,000
Dranesville (E1)         25,000

ALGONQUIN:

Ramapo (R1)              50,000

ANR:

Paulding/Cecil          100,000
(F1, A2)

LEBANON AGGREGATE       225,000
(A4, F2, C4, D3)

TOLEDO AGGREGATE        225,000
(A3, F4, 734462)

COLUMBIA GULF:
(801)

TCO-Leach             2,218,000

Internal point non-firm capacity will be as follows:

Lanham                No Restrictions

Delivery capacity (non-firm) will be as follows:

TRANSCO:

Martins Creek (MA 21)    25,000
Young Woman's Creek       5,000
   (MA 36)

ALGONQUIN:

Hanover (MA 22)         143,000

EQUITRANS:

Fallen Timber (MA 35)    35,000
(MLI K1)

Waynesburg-Rhinehart     30,000
(MA 26) (MLI K2)

OPT-30 will be available in all market areas.
OPT-60 will be available in all market areas.

Market Area delivery capacity (non-firm) will be as follows:

Operating Area 1
     Market Area 33       25,000
     Market Area 34       25,000

Operating Area 2
     Market Area 20       No Restrictions

Operating Area 3
     Market Area 15       No Restrictions
     Market Area 16       No Restrictions
     Market Area 17       No Restrictions
     Market Area 18       No Restrictions
     Market Area 19       No Restrictions

Operating Area 4
     Market Area 21       No Restrictions
     Market Area 22       No Restrictions
     Market Area 23       No Restrictions
     Market Area 24       No Restrictions
     Market Area 25       No Restrictions
     Market Area 29       No Restrictions

Operating Area 5
     Market Area 02       No Restrictions
     Market Area 07       No Restrictions

Operating Area 6
     Market Area 10       No Restrictions
     Market Area 11       No Restrictions
     Market Area 12       No Restrictions
     Market Area 13       No Restrictions
     Market Area 14       No Restrictions

Operating Area 7
     Market Area 01       No Restrictions
     Market Area 03       No Restrictions
     Market Area 04       No Restrictions
     Market Area 05       No Restrictions
     Market Area 06       No Restrictions
     Market Area 08       No Restrictions
     Market Area 09       No Restrictions

Operating Area 8
     Market Area 26       No Restrictions
     Market Area 27       No Restrictions
     Market Area 32       No Restrictions
     Market Area 35       No Restrictions
     Market Area 36       No Restrictions
     Market Area 38       No Restrictions
     Market Area 39       No Restrictions
     Market Area 40       No Restrictions

Operating Area 10
     Market Area 28       No Restrictions
     Market Area 30       No Restrictions
     Market Area 31       No Restrictions

If you have any questions, please contact your Account
Representative.


I added all of these demand charges as "Actual" expense items to the
2000ces03 worksheet.

k#892722 - You De Woman!!!

k#892069 - added to deal 143316
k#892066 - added to deal 143315
k#892084 - added to deal 143318
k#892085 - deal 143319
k#892590 - deal 245855 - added to CES worksheet.

Brenda H Fletcher
04/14/2000 06:45 PM
To: Chris Germany/HOU/ECT@ECT
cc: Alfonso Trabulsi/HOU/ECT@ECT, Scott Goodell/Corp/Enron@ENRON
Subject: Tetco Invoice - March

Invoice # 000300389
Contract # 892722
TETCO invoiced for demand of $2211.86.  Deal # 207137 did not have a demand
fee so I added it per the invoice.
If we should really not have a demand fee and pipe invoiced in error, please
let me know.
This contract is on the CES Retail spreadsheet for March but has zero
estimated.

Invoice #000300094

Contract 892069
TETCO invoiced for demand of $117.79.  I don't think that there's a deal in
Sitara. The contract is on CES spreadsheet with zero estimate and contract #
is in Old contract column.
Contract 892066
TETCO invoiced for demand of $3,382.59. No deal in Sitara: on CES spreadsheet
with zero estimate.
Contract  892084
TETCO invoiced for demand of $280.62. No deal in Sitara: on CES spreadsheet
with zero estimate.
Contract  892085
TETCO invoiced for demand of $3,108.20. No deal in Sitara: on CES spreadsheet
with zero estimate.
Contract  892590
TETCO invoiced for demand of $506.38 No deal in Sitara: Not on CES
spreadsheet .

If these are valid contracts and charges, please add deals in Sitara before
April 19th so invoice can be paid.

Thanks,
Brenda


If you have not named suggested reviewers by now you must gewt this done ASAP as all reviews must be completed in the next week.

Wayne

	Cindy Long/ENRON@enronXgate 05/16/2001 04:55 PM 	   To: Dan Masters/ENRON@enronXgate, Paul YBarbo/ENRON@enronXgate, David Glessner/ENRON@enronXgate, Larry Snyder/ENRON@enronXgate  cc: Wayne Perry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT  Subject: Message from Wayne Perry

Wayne has asked I remind each of you to go into the PEP system and complete your reviews.

Thanks,

Cindy


Check out this website and input information.  To help all of us to stay in touch.

www.1400smith.com


Hi Ben,

Hope the show ended up great for you guys.

Would you mind breaking down the last invoice (four objects) by object so I know the bill for each.  I'd like to send some dough.

Have a great thanksgiving if we don't talk before then--I'm leaving wed for Kentucky, then London.

Best to all,

Jeff

 -----Original Message-----
From: 	"Ben Macklowe" <Ben@MackloweGallery.com>@ENRON
Sent:	Friday, October 05, 2001 5:00 PM
To:	Shankman, Jeffrey A.
Subject:	Re: your nice note

Let's plan to get together.  Maybe you'll come over to our humble little pad
and have a nice home-cooked meal.  Hillary is a really good cook.

I am sorry I didn't invite you to the wedding, Jeff.  I was going to and
then changed my mind when you seemed so stressed and hassled by your
work/travel schedule.  I didn't want you to feel obliged to travel if you
didn't want to.  I should have asked you your preference.  I hope you
understand.

I'm so glad you're okay, relatively speaking.  You're a great guy, Jeff, and
I hope that this experience helps you and me and everybody around us to
focus on what's actually important in our lives, and to be especially kind
to each other.

Please tell me when you're coming around

Warm Regards,
ben

----- Original Message -----
From: <Jeffrey.A.Shankman@enron.com>
To: <Ben@macklowegallery.com>
Sent: Friday, October 05, 2001 2:40 PM
Subject: RE: your nice note

> Holy-shit, Ben.
>
> I take it Hillary was not at work that day.  I used to work in #2 on the
> 90th floor, and had to practice a few fire drills.  They weren't easy in
> the best of conditions.
> I could tell you a lot of horror stories as well, but if I started to, my
> key board would be wet with tears.  I had just gotten back from eqypt the
> week before.  Yom Kippur was nice--I spent it with my family in KY.  My
> sister is pregnant with her second, and her (first) daughter is
> unbelievable.  It's amazing to me how much time I've spent in the last
> month getting in touch with old friends, and spending more time with my
> family.  All of this other silly stuff seems a lot less important these
> days.
>
> I should be in NY in the next few weeks.  I can hardly wait to hear about
> the wedding, etc.
>
> Be well,
>
> Jeff
>
>
>
>     -----Original Message-----
>    From:   "Ben Macklowe" <Ben@MackloweGallery.com>@ENRON
>    Sent:   Tuesday, October 02, 2001 3:17 PM
>    To:     Shankman, Jeffrey A.
>    Subject:  your nice note
>
>
>    It is so nice to hear from you, Jeffrey.  I am  so glad that you
weren't
>    on one of those planes or at a meeting in the  Towers.  Personally, I
>    lost several acquaintances and clients, but no  family or friends, so I
>    feel really blessed.  In case you didn't know, my  Hillary worked on
the
>    101st floor in a charity that was located in the Cantor  Fitzgerald
>    offices.  It feels like a hand passed over her and she was  spared,
>    thank god.
>
>    When the rabbis closed the doors of the ark on Yom  Kippur eve (in
>    Rome's 100 year-old synagogue, btw), I just lost it.  I  started crying
>    for all those who didn't make it to this point, and my heart  yearned
to
>    mourn for all of them, to give their souls an aliyah before the doors
>    of their fate were sealed, but the emotions of it were just
>    overwhelming.   Words (for once) fail me.
>
>    I hope your Kippur was with loved ones and deeply  meaningful.  As for
>    me, I'm planning on celebrating Sukkoth tonight with my  families, and
>    then going to Washington Square Park for a quick l'chaim just to  make
>    it kosher.
>
>    Things have been a bit quiet, but hopefully we'll  have some bites on
>    your two items soon.  I do have a museum interested in  the Galle.
>
>    I am looking forward to sending you the most recent  batch of
>    masterpieces you got here.  You really are developing a great
>    collection.
>
>    Thanks for your good wishes,
>
>    Love,
>    ben
>
>
>
> **********************************************************************
> 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.
> **********************************************************************
>


Attached is the latest draft for review.  We plan on convening and 8 am
central time to review and finalize.


We are making a number of significant organizational changes.  These changes
are intended to accomplish four key objectives:

First, we need to realign all our wholesale businesses around the successful
business model developed over the last decade in North America and Europe.
This model relies on extensive physical and transactional networks built
around a relatively small strategic asset position.

Second, we need to significantly streamline corporate reporting
relationships.  Particularly with Joe Sutton,s departure, the ability to
directly manage the day-to-day activities of 15 independent business units
has become increasingly difficult.

Third, we need to accomplish these changes without, in any way, compromising
the ongoing profitability of all our businesses and without delaying or
hindering our effort to monetize a significant portion of our lower-yielding
asset positions.

And fourth, as always, we need to take advantage of the reorganization to
redeploy our talent into our highest value opportunities.

ENRON WHOLESALE SERVICES

Today, we are forming Enron Wholesale Services (EWS) which will consolidate
our global wholesale businesses.  The closer alignment of our wholesale
businesses will accomplish the following: (1) enhanced communication and
coordination across business units, (2) more rapid deployment of people to
higher valued opportunities, (3) more effective prioritization of
opportunities across the wholesale business, and (4) more rapid extension of
Enron,s wholesale business model and capabilities into new industries and
markets.

Enron Wholesale Services will include our current North American, European
(including Japan and Australia), Global Markets, and Industrial Markets
operations, and will be expanded to include Enron,s Net Works business unit
as well as a new unit ) Enron Global Assets.  In addition, Enron,s merchant
businesses outside of North America and Europe will be integrated into this
new structure as described below.

Mark Frevert, currently Chairman of each of our wholesale units, will assume
the role of Chairman and CEO of Enron Wholesale Services.  Greg Whalley,
currently Chairman and CEO of Enron Net Works, will join Mark in the Office
of the Chairman as President and Chief Operating Officer.

Providing further impetus for these organizational changes, several of our
international business unit leaders have elected to move into new leadership
positions:

Rebecca McDonald, currently CEO of Enron APACHI, will join EWS as President
and CEO of Enron Global Assets. Enron Global Assets will have responsibility
for managing all of Enron,s existing energy asset portfolio outside of North
America and Europe.  Joining Rebecca in the Office of the Chairman as COO
will be Jim Hughes, currently COO of Enron APACHI.  Rebecca and Jim will
report to the EWS Office of the Chairman.

Sanjay Bhatnagar, currently CEO of Enron India, has joined EBS as CEO for the
Middle East and Asia region.  Sanjay will be responsible for building our
broadband business in this region and the current EBS team in this region
will report to Sanjay.  In this role, Sanjay will report to the EBS office of
the Chairman.  In addition, Sanjay will continue to remain responsible for
Enron,s wholesale energy business in India and will transition this business
into Enron Global Assets in the near future.

Diomedes Christodoulou, currently Co-CEO of Enron South America, has joined
EBS as Chief Commercial Officer.  Diomedes will be located in London and will
focus his origination activities on global opportunities, with near term
attention to the wholesale and enterprise sectors.  Diomedes will report to
the EBS Office of the Chairman.

Jim Bannantine, currently Co-CEO of Enron South America, will be joining EES
to lead EES, commercial efforts outside North America and Europe.  In order
to ensure a smooth transition for our South American businesses and to
facilitate our asset sales activities, Jim will remain in South America for
at least the next several months and continue to serve as CEO of Enron South
America.  Throughout the transition, Jim will report to Cliff Baxter and to
the Office of the Chairman of Enron Wholesale Services.  Following the
transition, Jim will join EES.

In addition to these changes in our international asset operations
activities, we are making the following changes in our merchant wholesale
businesses and the commercial support functions:

Enron Net Works
Louise Kitchen will assume Greg,s previous responsibilities as President and
CEO of Enron Net Works, reporting into Mark and Greg.

Enron Americas
Concurrent with the transfer to Enron Global Assets of responsibility for
operating Enron,s South and Central America asset base, all trading,
marketing, and new asset development activities in these regions will report
into a new entity, Enron Americas.  Enron Americas will have responsibility
for all wholesale merchant businesses across North, Central and South
America.  Dave Delainey, President and CEO, and John Lavorato, Chief
Operating Officer will comprise the Office of the Chairman for Enron
Americas.

Enron Europe
The Enron Europe organization, which includes Enron,s businesses in Australia
and Japan, and Enron Metals, remains unchanged under the leadership of John
Sherriff, President and CEO, and Michael Brown, Chief Operating Officer.

Enron Global Markets
Enron Global Markets, under the leadership of Mike McConnell, President and
CEO, and Jeff Shankman, Chief Operating Officer, will continue to have
responsibility for Enron,s Middle East and LNG operations.  With the
exception of Ecoelectrica in Puerto Rico, all operating power plants and
associated personnel in the Caribbean and Central America will transfer to
Enron Global Assets.  Enron Global Markets will also continue to manage the
commodity businesses in crude and products, coal, weather, insurance,
equities, interest rates, foreign exchange, and agricultural products.

Enron Industrial Markets
Enron Industrial Markets, organization, under the leadership of Jeff McMahon,
President & CEO, and Ray Bowen, Chief Operating Officer, remains unchanged.

Commercial Support for EWS
The commercial support functions for EWS will remain with, and be managed by,
the individual business units.  We are creating no incremental overhead in
the creation of EWS, and in fact hope to reduce our operating costs by more
efficient utilization and sharing of resources across EWS.

To this end we have asked several people to take on an expanded role across
EWS in addition to their ongoing roles within their business units.  These
newly defined roles are as follows:

Mid and Back Office Operations ) Sally Beck will lead Mid and Back Office
Operations across EWS.  These services will become part of Enron Net Works,
with Sally reporting to Louise Kitchen and Rick Causey, Executive Vice
President and Chief Accounting Officer.  This alignment creates a coordinated
services organization with IT and e-commerce platforms to support the
wholesale businesses and to maximize opportunities to commercialize these
services.  Mid and Back Office services for all commercial activities will
continue to be organized with dedicated operations controllers responsible
for specific commodities and/or geographic locations.
Legal ) Mark Haedicke will serve in the role of General Counsel for EWS.
Regulatory and Government Affairs ) This function will remain organized on a
regional basis.  Rick Shapiro will support all EWS businesses operating in
the Americas, and Mark Schroeder, who is based in London, will support all
European and Eastern Hemisphere operations.  Rick and Mark will also continue
to support all other Enron businesses operating in their respective regions
and will continue to report to Steve Kean, Executive Vice President and Chief
of Staff.
Public Relations ) This function is also organized primarily on a regional
basis.  Eric Thode will have responsibility for North American activity,
Enron Net Works, and Enron Industrial Markets.  Jackie Gentle will continue
in her role for Enron Europe (including Japan and Australia) and John Ambler
will have responsibility for activity outside North America and Europe as
well as providing support for Enron Global Markets and Enron Global Assets.
These individuals will also continue to have a split reporting relationship
to Mark Palmer, Vice President of Communications.
Business Analysis and Reporting ) Wes Colwell will expand his role to cover
EWS reporting in addition to his current role in North America.

Attached for your review is an organization chart for Enron Wholesale
Services which summarizes the changes described here.  As this organization
continues to evolve we will keep you informed of any additional changes.

ENRON GLOBAL EXPLORATION AND PRODUCTION
AND ENRON WIND

 As part of our company-wide initiative to examine our assets and investments
around the world, we are considering a variety of options with respect to
EGEP and EWC.  As a consequence, we are putting these businesses under Cliff
Baxter,s direction.  Jeff Sherrick, CEO of EGEP, and Jim Noles, CEO of Enron
Wind, will report to Cliff.

CORPORATE STAFF

 We are consolidating the corporate staff functions: Human Resources,
Government Affairs, Public Relations/Communications and Administration.  In
that regard, Cindy Olson, Executive Vice President of Human Resources and
Community Relations, will report to Steve Kean, Executive Vice President and
Chief of Staff.

COMMITTEE STRUCTURE

 In light of the increased leadership opportunities created by Enron,s
growth, the Executive Committee will be expanded to include more of our
business unit leaders.  The primary role of this committee will continue to
be the communication of relevant information across Enron,s businesses and
the coordination of activities across those businesses.  We will also be
drawing on this group to lead company-wide initiatives such as the
performance review process and evaluation and creation of new businesses.
The Executive Committee membership is shown on the attached list.

 We are also forming a new committee ) the Enron Corporate Policy Committee.
This group will be responsible for overall corporate policy, personnel
management policy and corporate strategy.  The Enron Corporate Policy
Committee membership is also shown on the attached list.

 We are confident that these changes will align our talent and our capital to
our highest return opportunities.  Please join us in congratulating and
supporting all of these individuals in their new roles.


What cracks me up is that Gary is so proud of himself!
---------------------- Forwarded by Karen Denne/Corp/Enron on 03/28/2001
08:52 AM ---------------------------

Gary Ackerman <foothill@lmi.net> on 03/27/2001 11:39:22 PM
Please respond to foothill@lmi.net
To: Dan Douglass <douglass@arterhadden.com>, Lynn Lednicky <LALE@dynegy.com>,
"Richard H. Counihan" <counihan@greenmountain.com>, Sandra McDonough
<Sandra.McDonough@neg.pge.com>, Dan Pigeon <Dan_Pigeon@transalta.com>, Lynn
Fisher <lfisher@apx.com>, Karen Denne <kdenne@enron.com>, Richard Wheatley
<richard_n_wheatley@reliantenergy.com>, Paula Hall-Collins
<paula.hall-collins@williams.com>, Julie Gentz <julie.gentz@williams.com>,
Kelly Swan <kelly.swan@williams.com>, Joe Ronan <joer@calpine.com>, Tom
Williams <tcwillia@duke-energy.com>, Ed Mosey <efmosey@bpa.gov>, Mike Hansen
<mshansen@bpa.gov>, Jan Mitchell <jan.mitchell@pacificorp.com>, Toni
Amendolia <mozart@pwrteam.com>, Mark Stutz <mark.stutz@xcelenergy.com>, Steve
Roalstad <steve.roalstad@xcelenergy.com>, John Sousa <joso@dynegy.com>, John
Fistolera <johnf@ncpa.com>, Dace Udris <dudris@smud.org>, carol clawson
<carol_clawson@fpl.com>, catherine Parochetti
<catherine.parochetti@avistacorp.com>
cc:

Subject: My favorite quote

Personally, this is my favorite quote from the entire crisis.? It was in Mike
Taugher's column of the Contra Costa Times, today.
gba
?

Some observers were incredulous, noting Davis'
?????????????????????????? reputation as a micromanager who keeps
?????????????????????????? appointees on a short leash.

?????????????????????????? "The PUC has been run like his personal cabinet for
?????????????????????????? a year and a half," said Gary Ackerman, director of
?????????????????????????? the Western Power Trading Forum, a Menlo
?????????????????????????? Park-based association of electricity generators
and
?????????????????????????? traders. "This one's got me floored. The governor
?????????????????????????? once again is a day late. The Oscars for best actor
?????????????????????????? were last night."


See if you can open these up Tony.  They are real funny video clips.


Attached please find the execution copy of the Fountain Valley/ABB
Facility Agreement (the second document below), which includes the
changes to Exhibits A and S, as well as a blackline showing changes made
to the version circulated yesterday.  The date of execution is still
open.
 <<CRO- Fountain Valley/ABB Facility Agreement  Versions 4 to 5.DOC>>
<<Fountain Valley/ABB Facility Agreement - Version 5.DOC>>
 - ABB Facility Agreement  Versions 4 to 5.DOC
 - ABB Facility Agreement - Version 5.DOC


This is what I have for Feb.  I still need to update the 27th and 28th
volumes.  Let me know if you have questions.


Have you had any luck in finding Ann Elizabeth's form?


Okay.... we want one deal
ticket!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Chris Germany@ECT
02/01/2000 02:43 PM
To: Victor Lamadrid/HOU/ECT@ECT, Robert Allwein/HOU/ECT@ECT, Joann
Collins/Corp/Enron@ENRON, Joan Veselack/Corp/Enron@ENRON
cc:

Subject: CGAS meeting

I will be entering individual deals for CES until we come up with a better
method.  What if I set up a meeting with all of you, Dick Jenkins, Scott
Hendrickson, Sarah Mullholland and myself Thursday afternoon to discuss deal
tickets and pricing?

Good - bad?

Let me know.  Also, I will be out of the office tomorrow.


Troy Black called me about that C.A. I passed on to you.  He said he needed
it to go out today and also passed on words from the counterparty to the
effect that the C.A. was "non-negotiable and that if we had any comments they
need to be minor, or forget about it..."

There you have it!


The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  , 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Nat Gas Summer Strip
http://www.carrfut.com/research/Energy1/summerstrip11.pdf
Nat Gas Winter Strip
http://www.carrfut.com/research/Energy1/winterstrip11.pdf
Nat Gas Calendar Strip
http://www.carrfut.com/research/Energy1/calendarstrip11.pdf

Carr Futures
150 S. Wacker Dr., Suite 1500
Chicago, IL 60606  USA
Tel:  312-368-6149
Fax:  312-368-2281
soblander@carrfut.com
http://www.carrfut.com


-----Original Message-----
From: 	Colleen.Hoff@alliance-pipeline.com@ENRON
Sent:	Thursday, October  11, 2001 8:13 PM
To:	AllianceShippers@alliance-pipeline.com; DSO@alliance-pipeline.com
Cc:	customerservice@alliance-pipeline.com
Subject:	AOS for Oct. 13th thru Oct. 15th will remain at 20%

In the office Friday, October 12th:

7:00 am - Marco
8:00 am - Terri, Nasser, Cathy, Sherrall

CSR on call for the weekend - Terri Abraham (403) 517-6551
Scheduler on call for the weekend - Colleen Hoff (403) 517-6331

Colleen Hoff
Gas Scheduler
Alliance Pipeline
direct (403) 517-6331
fax (403) 234-7040


The State Governor Asks Generators to Take Less Than They're Owed Power:
Meeting with firms, Davis says that settling for 70% of debt would help
Edison stay solvent. One executive bristles.
Los Angeles Times, 05/10/01

US AND CANADA: Few US business chiefs see recession ahead White Sulphur
Springs Financial Times; May 10, 2001

Abreast of the Market
Dow Industrials, Nasdaq Decline; Cisco Helps Weaken Tech Issues
The Wall Street Journal, 05/10/01

INDIA: Enron prepares to move execs out of India - paper.
Reuters English News Service, 05/10/01

India: A rational renegotiation plan
Business Line (The Hindu), 05/10/01

India: Centre to back Maharashtra on tariff talks with Enron
Business Line (The Hindu), 05/10/01

Centre asks IDBI to seek legal advice on DPC
Business Standard, 05/10/01

USA: CEOs urge major moves to deal with energy crisis.
Reuters English News Service, 05/09/01

USA: INTERVIEW-Enron CEO sees gasoline prices staying high.
Reuters English News Service, 05/09/01

SMARTMONEY.COM: Power Surge
Dow Jones News Service, 05/09/01

India: No To Guarantees For Enron Power Project -Report
Dow Jones International News, 05/09/01

N American Newsprint: Publishers Hold Large Inventories
Dow Jones Commodities Service, 05/09/01

California; Metro Desk
The State Governor Asks Generators to Take Less Than They're Owed Power:
Meeting with firms, Davis says that settling for 70% of debt would help
Edison stay solvent. One executive bristles.
DAN MORAIN
TIMES STAFF WRITER

05/10/2001
Los Angeles Times
Home Edition
B-8
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- After spending months bashing independent power generators,
Gov. Gray Davis on Wednesday called on them to take 30% less than the $1.2
billion they are owed by Southern California Edison.
"The Legislature [is] going to insist on a reduction," Davis said after a
meeting in his office with representatives of a dozen power generating
companies. Davis said he told them that "70% this year was more valuable to
them than whatever they get two or three years down the line" if Edison is
forced into bankruptcy.
Davis urged generators to help California extricate itself from a summer of
rolling blackouts by selling every available electron to the state.
He held out the possibility that he might sign legislation imposing a
windfall profits tax on generators if they fail to help out this summer.
"My attitude on that would depend a lot on whether they showed good faith and
cooperated throughout this process," Davis said, emerging after a four-hour,
closed-door meeting with the generators.
The Democratic governor issued an invitation last week to the chief executive
officers of power generating and marketing companies including Enron,
Reliant, Duke Energy and others to meet with him in Sacramento. But most of
the executives who attended were a few pay grades below CEO.
Davis said he urged that the executives press lawmakers to approve the deal
he struck with Edison in which the state would give the ailing utility an
infusion of cash by buying its transmission system for $2.76 billion. Edison
would use the money to restructure its debt and pay its creditors.
Davis said lawmakers will not approve the deal unless the independent power
generators take less than they are owed.
He noted that the state and the power generators have "a collective interest
in seeing that this summer has as few disruptions as possible." If California
is hit with repeated blackouts, Davis has said, other states will delay or
end efforts to deregulate their electricity markets.
Executives, who braved taunts from a few protesters wearing pig masks and
carrying a small but loudly squealing pig, characterized the meeting as
businesslike. But at least some generators are less than enthusiastic about
taking less than they are owed.
"I have a real concern about the notion that we should give back some of the
money we made," said John Stout, a senior vice president of the Houston-based
Reliant Energy, which says it is owed $300 million by Southern California
Edison and Pacific Gas & Electric.
Stout said that much of the money Reliant made in California is being
reinvested in power plant construction--although he added that the company
has no generators under construction in California.
"Political uncertainty has put a huge risk factor on investment in
California," Stout said.
Randy Harrison, an executive with Mirant, based in Atlanta, said the issue of
a so-called "haircut" was discussed, though not in detail. Harrison said it
is "not completely off the table." But he added that his company is not
profiteering. Nor has it withheld electricity in any attempt to manipulate
wholesale energy prices.
"Our people are working 24 hours a day and we are spending millions of
dollars to try and keep our power plants up and running," Harrison said.
The meeting was aimed at opening communication with the generators. But Davis
aides said the governor also wanted to bring attention to companies that he
believes are at least partly responsible for California's energy crisis.
The meeting occurred as polls show that voters are increasingly angry about
the energy crisis and as lawmakers, fearful that the energy crisis will wreck
California's economy, sharpen their attacks on power generators.
Legislators have introduced bills to impose a windfall profits tax on
generators and make it a felony to manipulate electricity markets. Lt. Gov.
Cruz Bustamante and Assemblywoman Barbara Matthews (D-Tracy) sued several
generators last week. Atty. Gen. Bill Lockyer is investigating whether
generators violated antitrust and other laws as wholesale prices soared to
record heights, hobbling Edison and helping push PG&E into bankruptcy.
Voters are not sure who is to blame, but they are convinced that "whoever is
taking our money is taking way too much," said Democratic political
consultant Richie Ross.
"They want to find this deregulation's Charles Keating," Ross said, referring
to a central figure in the 1980s savings and loan debacle.
Still, as much as Davis and others demonize generators, the state needs them,
some officials say.
"We don't have enough power without them," said Assembly Energy Committee
Chairman Roderick Wright (D-Los Angeles). "There needs to be an adult
discussion to see what can be worked out."

PHOTO: CHP Officer Stacey Brashares holds a pig taken from protesters outside
the Capitol, where Gov. Gray Davis was meeting with executives of power
generating companies. Masks worn by the protesters carry the names of some of
the companies.; ; PHOTOGRAPHER: ROBERT DURELL / Los Angeles Times; PHOTO:
Gov. Gray Davis, after a meeting in his office with representatives of a
dozen power generating companies.; ; PHOTOGRAPHER: Associated Press

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

		US AND CANADA: Few US business chiefs see recession ahead White Sulphur
Springs Financial Times; May 10, 2001
By PERONET DESPEIGNES and ANDREW HILL

		Only 11 per cent of chief executives at the largest US companies believe the
country is heading for a recession this year, according to a survey released
yesterday, but most agree 2001 will be at best a year of sluggish growth.
		The survey was published to coincide with the spring meeting of the Business
Council, an association of chief executives from many of the largest US
companies.
		Bill Harrison, president and chief executive of JP Morgan Chase, the banking
group, said the survey reflected "substantial uncertainty and difference of
opinion" about the potential length and depth of the slowdown.
		Business leaders also appeared divided about the role of the Federal Reserve.
The chief executives listed the Fed's interest rate increases as the most
important cause of the US economic slowdown, but they also gave credit to the
central bank for staving off recession by easing monetary policy this year.
		The Business Council survey released at last October's meeting was an early
indicator of corporate America's growing concern about the US economic
outlook.
		Yesterday's report indicated nearly three quarters of US business leaders
expected growth to improve in 2002, but of those who responded, 70 per cent
expected growth in output this year of between 0 and 1.5 per cent. Some 19
per cent predicted economic growth of 1.5 per cent to 3.5 per cent, and only
11 per cent predicted a US recession.
		The business leaders also remained pessimistic about growth outside the US.
The survey found they expected 1-2.5 per cent growth in the euro-zone this
year, down from 3.4 per cent in 2000, and growth of 0 to 1 per cent in Japan,
compared with 1.7 per cent last year.
		There was, however, optimism about the potential for continued productivity
improvements. "The wide majority of respondents expect that the current pace
of productivity growth can and will be maintained," said Mr Harrison,
vice-chairman of the council.
		Economic data released on Monday showed US workers' productivity slipped in
the first three months of this year, but Mr Harrison said it would be wrong
to overreact to data from one quarter.
		More than 80 current and former chairmen and chief executives are expected to
attend the Business Council sessions today and tomorrow at the Greenbrier
resort hotel in West Virginia.
		One of the hottest topics will be the US energy crisis. Scott McNealy of Sun
Microsystems, the computer group, and Ken Lay, chairman of Enron, the energy
group, criticised the sluggishness with which California had reacted to the
problems.
		Mr McNealy said it was time to make "trade-offs on the environmental front",
including reconsidering the use of nuclear power.
		* One of the most prominent groups of US economists remains "steadfast" in
its belief that a US recession is unlikely, Peronet Despeignes writes in
Washington. The National Association of Business Economics said in its latest
quarterly economic outlook, based on a survey of 27 members, that interest
rate cuts by the Fed would sustain economic growth. The chance of a recession
was put at 35 per cent, and most panellists agreed any recession would likely
be "milder than the usual post-World War II recession".
		The group maintained its forecast for economic growth of 2 per cent in 2001,
but lowered its forecast for 2002 to 3.1 per cent from 3.5 per cent. The
panel also expected inflation of 3 per cent in 2001 and 2.5 per cent in 2002.
		The group reversed its previous criticism of monetary policy as "too tight",
deeming the Fed's current conduct "just right".
		Most panellists attributed the slowdown to a "classic inventory correction",
the Fed's monetary tightening, which ended a year ago, and the drop in stock
prices since March of last year.
		Copyright: The Financial Times Limited

Abreast of the Market
Dow Industrials, Nasdaq Decline; Cisco Helps Weaken Tech Issues
By Robert O'Brien
Dow Jones Newswires

05/10/2001
The Wall Street Journal
C2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Disappointment with Cisco Systems' earnings statement weakened
technology issues exposed to the telecommunications-gear business, but
without causing any fallout in the rest of the market.
Cisco itself declined $1.25, a loss of 6%, to $19.09 at 4 p.m. in Nasdaq
Stock Market trading, after the company, the leading maker of
Internet-switching equipment, came through late Tuesday with fiscal
third-quarter results that closely tracked the forecast the company offered
last month. Meanwhile, the commentary accompanying the profit statement
didn't do anything to stimulate hope for a pickup in the moribund
telecom-equipment market.
Shares in makers of the communications chips used in Cisco's networking
products declined sharply, with PMC-Sierra falling 3.99 to 40.11, while
Conexant Systems declined 1.33 to 9.87, and Broadcom dropped 4.29 to 40.24,
all on Nasdaq.
Some of the enterprise networking products also came undone, with Extreme
Networks falling 2.16 to 32.49 on Nasdaq. Makers of rival communications
technologies also took a spill. Juniper Networks declined 1.53 to 57.37,
while Ciena dropped 1.06 to 60.54, both on Nasdaq.
"Cisco's results put further scrutiny on the earnings and revenue projections
of related companies as we look ahead to second-quarter results," said Brian
Belski, fundamental market strategist at U.S. Bancorp Piper Jaffray. "But on
a relative basis, the market held in there."
The Nasdaq Composite Index, suffering from the Cisco fallout, declined 42.14,
or 1.9%, to end at 2156.63. But the Dow Jones Industrial Average acquitted
itself nicely, keeping its loss to 16.53, or 0.15%, to finish at 10866.98.
Investors adopted a somewhat defensive posture in the face of the weakness in
technology, gravitating toward areas that aren't especially sensitive to
economic trends, or toward sectors where profit growth looks dependable.
Shares of Procter & Gamble, for example, moved up 1.69 to 66.19, one of the
better moves by consumer-product stocks, which generally aren't sensitive to
economic weakness.
Utilities also proved popular. Duke Energy gained 1.87 to 45.84, Public
Service Enterprise Group advanced 1.08 to 46.20, and Enron climbed 3.09 to
59.20. The Dow Jones Utility Average increased 5, or 1.3%, to 383.74.
Energy stocks rose briskly, after weekly inventory data released late Tuesday
tamped down some of the concerns about increasing reserves stoked by reports
last week. Chevron gained 1.63 to 95.43, Texaco added 1.28 to 71.10, and
Exxon Mobil moved ahead 98 cents to 89.72. Oil-services and equipment
providers, which have been in a funk, recovered nicely, with Schlumberger
gaining 1.14 to 62.95, Halliburton advancing 1.28 to 42.51, and B.J. Services
improving 1.39 to 75.90.
Maxim Integrated Products (Nasdaq) fell 2.51 to 49.49. The Sunnyvale, Calif.,
maker of analog circuits posted fiscal third-quarter results late Tuesday
that matched Wall Street's projections, but also gave details about the
expected decline in its revenue and earnings in the fourth quarter. Lehman
Brothers, which had forecast weak guidance, said in a research note that it
remains cautious about the company's outlook.
Other integrated circuit makers also declined in the session, with Linear
Technology falling 2.38 to 48.04, while Analog Devices fell 1.61 to 46.35.
Chip maker National Semiconductor lowered its fiscal fourth-quarter earnings
forecasts, and announced plans to cut 10% of its work force, but the stock
made up intraday weakness, finishing unchanged at $25.
Exodus Communications (Nasdaq) fell 69 cents to 9.43. The Santa Clara,
Calif., provider of Internet hosting services said it planned to cut 15% of
its work force as part of an effort to cut costs.
WorldCom (Nasdaq) inched up 31 cents to 18.29. UBS Warburg reiterated its
strong buy rating on the Clinton, Miss., telecommunications service provider,
saying that the company's recent bond offering, which has been a drag on its
share price, won't have much, if any, impact on its ability to live up to
earnings forecasts.
Verizon Communications sagged 1.78 to 53.82. The telecommunications service
concern unveiled one of the largest convertible debt issues ever, a $3
billion offering of zero-coupon notes.
Johnson & Johnson gained 30 cents to 98.25. The New Brunswick, N.J.,
medical-products concern said it is in discussions about acquiring Inverness
Medical Technology's diabetes-care product operations for about $1.3 billion
in stock.
Sepracor (Nasdaq) gained 3.49 to 30.49. The Marlborough, Mass., specialty
drug maker said the Food and Drug Administration accepted for review its
capsule-form version of Soltara, an allergy-relief treatment.
Willamette Industries moved up 19 cents to 48.75. The Portland, Ore., lumber
and paper-products concern rejected Weyerhaeuser's sweetened takeover bid of
$50 a share, calling the offer inadequate. Weyerhaeuser, Federal Way, Wash.,
eased 15 cents to 56.22.
Northrop Grumman fell 3.50 to 88. The Los Angeles defense contractor made an
unsolicited bid to buy rival Newport News Shipbuilding for $67.50 a share, or
$2.1 billion, in cash and stock. Newport News added four cents to 65.04.
General Dynamics, which had previously agreed to buy Newport News for the
same price, fell 15 cents to 78.15.
Shares of several other aerospace and defense contractors moved higher in the
session, after Credit Suisse First Boston sketched the benefits to the group
from some of the Bush administration's prospective military-spending
initiatives. TRW added 2.05 to 40.20, Boeing rose 54 cents to $65, and
Raytheon advanced 35 cents to 29.46.
Alliant Techsystems, another name in the group identified by Credit Suisse
First Boston as benefiting from military spending, fell 2.50 to 95.50, even
though the Minneapolis aerospace and defense concern's fiscal fourth-quarter
earnings topped Wall Street's profit forecasts.
Forest Laboratories moved ahead 2.88 to 62.21 following some upbeat comments
from Thomas Weisel Partners.
Triad Hospitals fell 2.45 to 24.70. Lehman Brothers cut its rating on the
Dallas hospital operator, citing concerns about the recent acquisition of
Quorum Health Group.
Circuit City dropped 97 cents to 13.55, after Lehman Brothers in a research
note offered some cautious comments about the valuation of the Richmond, Va.,
consumer-electronics retailer.
Spinnaker Exploration gained 3.55 to 40.50. Credit Suisse First Boston, which
had cut its rating on the Houston natural-gas concern last month, returned
its strong buy rating on the stock.

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

INDIA: Enron prepares to move execs out of India - paper.

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

BOMBAY, May 10 (Reuters) - U.S. energy giant Enron Corp has begun a process
of relocating executives overseeing its controversy-wracked $2.9 billion
power project in India, an Indian financial daily said on Thursday.
The Economic Times said company sources, which it did not name, said the
Houston-based company was preparing to offer its dozen managers in India a
choice of transfering elsewhere or accepting a lump sum to retire.
"Unfortunately, the company could not pursue its projects in India, and has
decided to fold up its operations in the country," the newspaper quoted an
unnamed Enron official as saying.
The report also said: "The whole process of relocating the Indian staff is
expected to be completed within a month or two."
An Enron spokesman declined comment, saying it was company policy not to
comment on administrative and personnel matters.
On Wednesday another domestic daily, the Times of India, reported that the
families of executives overseeing Enron's troubled Dabhol Power Company (DPC)
project in India were leaving the country.
It said the children of Enron executives had been pulled out of the American
School in Bombay as their families were being relocated to Singapore.
It also said security around the expatriate executives had been tightened,
and personal bodyguards assigned to senior executives, because "there is
likely to be a tremendous backlash" if the project is terminated, causing the
loss of 15,000 jobs.
The Economic Times report on Thursday noted that Enron had already pulled out
of all the other projects in India in which it once planned to invest.
Metgas, which was to build a liquefied natural gas pipeline in the state of
Maharashtra, and Enron Broadband Solutions, which was to lay an optic fibre
cable network across the country, have virtually folded up operations, the
newspaper said.
"The other group company, Enron Oil & Gas (India), which is a joint venture
between Reliance and ONGC, is currently in the process of selling its stake,"
it added.
Enron has also scrapped plans to invest in other power projects in India, due
to financial problems encountered by its nearly complete 2,184 MW power plant
south of Bombay.
The project is mired in controversy after the Maharashtra State Electricity
Board (MSEB) reneged on its commitment to buy all the power produced by the
giant plant, saying it is too costly.
MSEB has also defaulted on monthly payments to DPC for the electricity it has
taken, forcing the company's board last month to authorise the management to
terminate the contract.

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

India: A rational renegotiation plan

05/10/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

Separating the LNG project from the power project would reduce the tariffs
for the latter, but not remove the financial hurdles for the State and the
Centre. They would continue to pay more for the LNG project and guarantee its
loans. DPC is now recovering the cost of the LNG project from the power
project. Therefore, the mere segregation of the LNG project without
readjusting the PPA or delinking the sovereign guarantee obligations would
only help DPC and not the people of Maharashtra, says S. Padmanabhan.
THE MAHARASHTRA Government recently announced its plans to renegotiate the
Enron-promoted Dabhol power project. In this connection, Mr R. K. Pachouri, a
committee member appointed for the renegotiation, outlined the priorities of
the project in a television interview:
- To reduce the interest rate for the project debt of DPC to be in line with
the current market trends;
- To achieve higher output and identify power purchasers outside Maharashtra;
and
- To separate the LNG project from the power project.
A business daily on May 2 reported that Indian Oil plans to supply 1.2
million tonnes of naphtha to DPC at around the international price of $290 a
tonne, including sales tax of 16-18 per cent per tonne.
The report indicates that DPC has requested the Maharashtra Government to
waive the sales tax so that the reduction in the sales tax can be passed on
to the consumers.
Similar news reports on the project have started appearing in both the print
and visual media. These indicate that the State Government and the DPC
management seem to have come to an understanding on the broad principles of
renegotiation and both are in the process of educating the public about the
benefits these various measures would bring to the project.
No doubt, these steps would bring down the tariff. But, then, the reduction
will be due to concessions and subsidies offered by the State and the
financial institutions by way of waiver of sales tax and reduction in
interest rate. It appears that DPC will not offer any reduction or concession
offered in the tariff or the rate of returns.
Reduction in project debt: When the DPC loans were sanctioned, the prime
lending rate was around 14 per cent and the power projects were offered loans
at 3-3.5 per cent over the PLR. Now the PLR is around 12.5 per cent and the
interest rates for the power sector will be 15-15.5 per cent. Effectively,
there would be a reduction of around 1.5-2 per cent in the interest rate.
However, it must be noted that the same refinancing opportunity is good for
every other Indian project.
If the Centre permits refinancing for DPC, it should permit projects in other
States as well to be refinanced. If it does, that will be at a considerable
loss to the FIs such as the IDBI, the IFCI and the ICICI.
To achieve higher output and identify power purchasers outside Maharashtra:
This is not a tariff- reduction exercise. In fact, this would help DPC
improve its profits and cash flows under the present PPA. DPC has a single-
point tariff which consists of a fixed and a variable charge. Higher the
output the DPC recovers, higher the fixed charges and higher the profits.
Thus, without any significant changes in the existing PPA, this step would
help DPC, and put more States in trouble.
Perhaps, the renegotiating committee wants other States to sink as well with
Maharashtra.
To separate the LNG project from the power project: This is a welcome step.
While it would reduce the tariff for the power project, it would not remove
the financial hurdles for the State and the Centre, which would continue to
be paying more for the LNG project and guaranteeing the loans of the LNG
project. DPC is now recovering all the cost of the LNG project from the
Dabhol project, which will consume only around 2.5 million tonnes of LNG,
whereas the capacity of the LNG project is being upgraded to five million
tonnes. Therefore, the mere segregation of the LNG project without
readjusting the PPA or delinking the sovereign guarantee obligations does not
serve the purpose. It would help DPC and not the people of Maharashtra.
To exempt sales tax on naphtha: This is like robbing Peter to pay Paul. As
IOC suggested, if $290 is the price of naphtha per tonne, it works out to Rs
13,630 (one $ = Rs 47). Given that DPC gets paid fuel cost per kWh at 2,000
kcal (heat rate) and the naphtha has a heat value of 11,000 kcal, one tonne
of the fuel will give DPC fuel price for 5,500 kWh, that is at the rate of Rs
2.48 per kWh for naphtha.
If sales tax of 16 per cent is exempted from this price, the naphtha price
drops to Rs 11,750 and the per kWh fuel price for DPC drops to Rs 2.14 from
Rs 2.48. IOC expects to supply 1.2 million tonnes of naphtha for producing
6,600 million kWh and the sales tax exemption effect will be Rs 225 crore
(0.34 per kWh).
What is DPC's contribution in this reduction? On the same account, every
power project would seek to reduce the sales tax on the fuel they use.
Remember that if the State sacrifices revenue in one area, it will recover
the loss through some other taxes. When the current trend is to remove
subsidies in all the sectors, the State and the renegotiating committee are
opening up new subsidies to support DPC.
An alternative
The renegotiating committee should reduce the real tariffs from DPC's fixed
costs, rather than making cosmetic changes in the taxation structure.
The following steps are needed:
- To remove the corporate veil protecting the DPC project documents:
The public at large are paying for the revenues of DPC and no government can
have the right to keep a veil of secrecy on the documents. This will help the
public at large and the experts in the industry understand the implications
and suggest viable alternatives.
- To change DPC tariff formula from a single-part to two-part tariff:
The Centre has a two-part tariff policy which stipulates recovery of fixed
cost under certain circumstances. The most critical issue of this policy is
the recovery of all fixed costs at a capacity utilisation (PLF) at 75 per
cent. DPC has adopted a single part tariff system where the fixed costs are
paid for all capacities and, thus the return of DPC increases as the capacity
utilisation rises. While this method may promote efficiency, DPC has tied the
State in tight knots with this higher capacity utilisation and, will make
very high levels of profits. Therefore, it is essential that the single-part
tariff is renegotiated at lower levels or better still scrapped and two-part
tariff adopted.
Renegotiating the station heat rate: DPC has a station heat rate of 2000 kcal
per kWh. Thus, for every unit of electricity it produces the fuel - naphtha -
it is reimbursed to DPC at the rate of 2,000 kcal per kWh. At $290 per tonne
(Rs 13,630 at one $ = Rs 47) of IOC price this works out to Rs 2.48 per kWh.
DPC uses GE 9FA machines-gas turbines which burn naphtha at around 1,700 kcal
per kWh. In other words, DPC uses 1,700 kcal of naphtha and gets paid for
2,000 kcal.
Thus, it spends Rs 2.11 per kWh on fuel but gets paid Rs 2.48 per kWh, making
a profit of Rs 0.37 for every kWh. On 2,100 MW at 80 per cent capacity, this
is a whopping Rs 550 crore. While there may be technical grounds to pay at a
level higher than 1,700 kcal due to considerations of part load, there is no
justification for paying at 2,000 kcal. In fact, the Centre and the CEA as
well as other States have been successfully forcing all power producers to
reduce from the 2,000 kcal levels while Maharashtra has not been able to do
this.
This is a key issue in negotiations.
To source naphtha only from domestic sources: India has a surplus of naphtha
as of now and there is no need to import it. DPC should be forced to buy fuel
only from domestic sources so that the profits remain with domestic
companies, and not allow DPC to make higher profits of fuel handling.
What if renegotiation fails?
DPC will not agree to changes in the PPA as it would feel that it is a signed
and sealed document. Maharashtra may look at cosmetic changes, and may make
sacrifices to reduce the tariff. But in the long run, the contract will run
aground because of the inability of the State Government to use and pay for
the power produced by DPC.
Given the background of Enron worldwide, it would press ahead with its
perceived advantages - legal and contractual. It is better for the State to
ready a back-up action plan. The following line of action is suggested:
- To terminate the PPA and other project contracts and give notice to Enron
to wind up operations;
- To inform the lenders, the beneficiaries of the sovereign guarantee, that
the Centre will pay up its commitments. Perhaps, this may involve setting up
an escrow account and placing sufficient debt reserve funds that the lenders
may request, pending final payments;
- To quickly move towards an arbitration process primarily to d etermine the
amounts payable to Enron towards contract termination;
- To initiate an international competitive tendering process, with the
permission of the lenders, to sell the power project and the LNG terminal as
independent projects - the process should also permit bids from Indian
companies;
- To make a serious effort to complete the bid finalisation and selection of
the successful bidder in two-three months;
- The bidding process should have two parameters for the bidders to quote:
a) tariff payable to the bidder for the next 20 years (in the case of LNG
terminal - price of gas on long term basis);
b) price for the assets;
c) The bid would attract several international power players including
American companies for the power and the LNG projects and the bids offered
will be attractive. Also Indian companies or consortia would line up for the
bid;
d) Simultaneous with this exercise, as soon as determination of amounts
payable to Enron becomes clear, to place the funds so determined and accepted
with an escrow agent acceptable to Enron;
e) To set up an investigating team to go into the approval process to
determine whether there has been any corrupt practice in the process of
granting approvals. There is a Supreme Court case (filed by CITU) pending
decision on charges of corruption. The investigating team to focus, with the
cooperation of the US Government, on the issues relating to Foreign Corrupt
Practices Act (FCPA) of the US. Violation of the FCPA by any American
corporate is a serious issue attracting criminal prosecution. There can be a
time bound investigation;
f) To proceed with the prosecution of all people concerned if found guilty -
if Enron is found guilty the compensations may not be payable and the US law
agencies will step in to prosecute Enron;
j) If Enron is not found guilty, to pay the monies due to it by releasing the
amounts in escrow. By this time the asset takeover and the debt repayment
issues would have been resolved;
k) Conservatively, it is believed that there would be an ultimate gap of
$1,000 million (Rs 4,700 crore at one $ = Rs 47) after the assets are sold
and debts transferred to the new owners. It is suggested that the State float
a public debt issue for paying this to Enron and levy an 'Enron Cess' to
recover the loss and repay the debt issue over the next 15-20 years. At a
return of 10 per cent per annum on Rs 4,700 crore over the next 15 years and
assuming that 100 per cent of the loss is recovered from the 2,100 MW project
and assuming an 80 per cent PLF, the 'Enron Cess' per kWh of energy produced
will be Rs 0.42.
But will the Central and State governments have the political will to force
this issue?
(The author is a power-finance consultant.)

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

India: Centre to back Maharashtra on tariff talks with Enron
Our Bureau

05/10/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

BANGALORE, May 9. THE Centre has conveyed that it would support the
Maharashtra Government on the contentious issue of tariff renegotiations with
Enron for power purchase from Dabhol Power Company (DPC).
Talking to newspersons here on Wednesday, the Union Minister for Power, Mr
Suresh Prabhu, said the Centre had already appointed the Solicitor-General of
India as its nominee in the panel set up by the Maharashtra State Government
headed by Mr Madhav Godbole to renegotiate the terms of the power purchase
agreement. Enron's executives were due to meet the panel on May 11 in this
connection, he added.
Replying to questions on Enron's proposals to exit from DPC, he said that
neither the Maharashtra Government nor Enron had conveyed their desire to
exit from DPC. "We will support the State Government," he emphasised. He said
that the Centre was not in a position to intervene in the matter since it was
for Enron to take a decision on the issue.
However, the Centre's counter guarantee liabilities in DPC would be confined
to the extent of the State Government's payment defaults.
Earlier speaking at the inauguration of CII institute of quality, he said
that the Centre's new focus was on conservation of power rather than adding
fresh capacity.
The Karnataka Chief Minister, Mr S.M. Krishna, who was also present, said
that WTO's impact on the agriculture sector needed to be addressed and said
that the Prime Minister should call a meeting of the Chief Ministers to
discuss the outcome of the WTO and future steps that needed to be taken.
He added that the Congress had initiated reforms - liberalisation and
globalisation - and there was no intention of retreating on them.
However, it was necessary to have a mid-term appraisal on them. Dr K.
Kasturirangan, Chairman, Indian Space Research Organisation said, "Behind
every successful company is a quality culture, and that in the unforgiving
environment of space strict quality awareness was very essential and any
violation would mean that we have to pay heavily in space."
He added that space had given to the world configuration, control and
management and in the Rs 1,000 crore GSLV programme, over 10,000 computer
simulations had been done in th last six-seven years, before it was
considered flight worthy.
Almost 1000 major reviews were done and input collected not only from senior
engineers, but from youngsters too, "as their minds are fresh.
We worked towards transparency and fairly and frankly exchanged ideas.
Around half a million a A-4 size papers documentation was done on the
programme," he added.

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

Centre asks IDBI to seek legal advice on DPC
Our Regional Bureau New Delhi

05/10/2001
Business Standard
3
Copyright (c) Business Standard

The Centre has asked the Industrial Development Bank of India (IDBI) to seek
legal advice on the letter issued by the international lenders to Enron
seeking a series of demands from the Maharashtra and central government.
In a communication to the financial institution, the finance ministry has
said that a decision to provide escrow cover and increase the limit under
letter of credit to Dabhol Power Company as per the demand of the energy
major's global and domestic lenders last week, can only be taken after
considering all the relevant issues.
In the reply, also sent to the Maharashtra government, the ministry has also
referred to the state government's refusal to tow the line on the demands put
forward by the lenders in a letter to the finance secretary, Ajit Kumar.
The lenders to Enron including ABN-Amro, Credit Suisse First Boston, Citibank
N A, ANZ Export Finance Ltd and Banc Of America had asked for payment of the
disputed Rs 213 crore towards December and January bills plus an escrow cover
and an increase in the letter of credit amount.
It had also asked the Centre to honour the counter guarantees and its
obligations in the power purchase agreement.
Meanwhile, the state yesterday appointed Singapore-based lawyer Quentin Loh
as its representative for the three arbitration cases and MSEB would be
represented by former Bombay High Court judge ML Pendse.

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

USA: CEOs urge major moves to deal with energy crisis.
By Jeremy Pelofsky

05/09/2001
Reuters English News Service
(C) Reuters Limited 2001.

WHITE SULPHUR SPRINGS, W.Va., May 9 (Reuters) - In fear of the unpredictable
power outages in California, Scott McNealy, the chief executive at computer
giant Sun Microsystems Inc. , has resorted to carrying a flashlight with him
at all times.
Plus, the network computer maker will be $8 million to $9 million over the
annual budget for its facilities in California because of high energy costs,
he said Wednesday at the chief executive summit known as the Business Council.
"I don't know about you but I carry a flashlight everywhere I go," McNealy
said. "We've got third world power out there."
California's summer of blackouts could cost its economy almost $22 billion in
lost productivity and chop as many as 135,000 jobs in the state, according to
an industry association study released Wednesday.
With energy prices expected to soar as the year progresses, the executives
surveyed by the Business Council, an association of corporate executives,
urged further liberalization of the energy market and sought new incentives
for exploration.
"Consensus expectations are for higher petroleum and electricity costs over
the balance of this year," said J.P. Morgan Chase & Co. Inc. executive
William Harrison.
The blackouts - the most visible result of an energy crisis caused by
California's disastrous 1996 experiment with power market deregulation - are
forecast to continue through the summer as warm temperatures keep air
conditioning demand high.
The industry groups that commissioned the study hope to use it to campaign
against a new, tiered power rate structure being considered by the California
Public Utilities Commission (CPUC), which they claim will pass too much of
the burden of paying for California's energy crisis on to industrial
customers.
That rate proposal, officially put forward Wednesday, would slap residential
customers who use the most electricity with average rate hikes of between 35
and 40 percent, while industrial users could face rate hikes of 50 percent or
more.
Kenneth Lay, chairman of Enron Corp. , the biggest buyer and seller of
electricity in North America, said California could pay from $50 billion to
$80 billion this summer for electricity.
"The biggest impact will be the disruptions in that economy if in fact we
have a normally warm or even warmer than normal summer," Lay said. "There's
still a lot of things that have to be done."
He said there has to be a complete plan to solving the crisis and the longer
the state waits, the more money that will be paid out. Lay also urged for
more steps to promote energy conservation.
"I think it's a very solvable problem, it just cannot be solved without some
pain," Lay said. "Finally they're raising rates ... and at least correcting
some of the problems."
Sun's McNealy said there must also be another look at building nuclear power
plants.
In the meantime, he quipped that while Palo Alto, Calif.-based Sun has a
dress code requiring employees to come to work in clothes, that may change.
"We're thinking of backing that off a bit or even encouraging people to wear
shorts because we're cranking up the thermostats," he said.

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

USA: INTERVIEW-Enron CEO sees gasoline prices staying high.

05/09/2001
Reuters English News Service
(C) Reuters Limited 2001.

WHITE SULPHUR SPRINGS, W.Va., May 9 (Reuters) - Consumers will not likely get
any relief at the gas pumps this summer but prices are not expected to hit $3
a gallon as some have forecast, Enron Corp. Chairman Kenneth Lay told Reuters
on Wednesday.
Gasoline inventories have been rising in recent weeks, more than was
expected, which could hold prices from skyrocketing, Lay told Reuters in an
interview on the sidelines of the annual meeting of the Business Council in
the mountains of West Virginia.
"Hopefully they will not go up as much as people feared," he said, adding
that he "would not be surprised if they go up a little bit."
The Energy Information Agency said the national retail gasoline price hit a
new record high of $1.70 a gallon on Monday and could climb to $1.75 this
summer with demand expected to grow despite the increase.
EIA warned that current gasoline inventories, which have risen recently but
remain below historical levels, set the stage for fuel supply disruptions
that could result in price spikes this summer.
Lay said that holding down summer gas prices will largely depend on whether
there are any disruptions at refineries across the country and the flow of
imports from abroad.
"But with normal refinery runs, and imports and all the rest of it, hopefully
the market will not get too far out of balance," he said.
"We'll probably not see much softness in the gasoline prices either until
back in the fall some time," Lay said.

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

SMARTMONEY.COM: Power Surge
By Roben Farzad

05/09/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -(Dow Jones)- Talk about vindication. In the late 1990s, when tech
was shooting through the roof, no one wanted to waste their time in the
greasy, sweaty world of oil and gas stocks. The fact that energy prices were
touching multiyear lows at the time didn't help. In those days, being an
energy analyst was the loneliest of callings.
Needless to say, things have changed. Last year, power shortages and record
oil and gas prices sent the once forsaken group of energy stocks soaring
while investors ran screaming from the likes of Cisco Systems (CSCO), Intel
(INTC) and the B2B flavor of the month. Suddenly, energy experts were the
life of the party.
So dramatic was the rotation that unearthing value plays has become
difficult. The Dow Jones U.S. Energy Index, for example, is up 18% in the
last year, while the American Stock Exchange Natural Gas Index has soared 33%
- compared with the Standard & Poor's 500's 12% drop.
But that doesn't mean finding underappreciated stocks is impossible. It just
takes some, well, drilling down.
Start with Houston-based fuel exploration and producer Apache (APA), a
SmartMoney.com favorite stubbornly trading at a 21% discount to its 52-week
high of $74 set last December. In March, Robert Hunter noted that natural-gas
prices would likely continue to spike into 2001 even after quadrupling
between 1999 and 2000. So far, that scenario has played out, yet Apache still
trades at a 33% discount to its 2001 estimated net asset value, while sector
rivals currently trade at a more reasonable 15% to 20% discount to their
NAVs. Moreover, the stock presently changes hands at just 12 times forward
earnings - a hefty discount to its historical Cisco-like multiple of 66.
Why the disconnect? Admittedly stumped, the oil and gas analyst community -
which is almost uniformly positive on Apache - concedes that investors have a
difficult time believing the gas industry's "perfect storm" combination of
all-time high prices, low reserves and high demand will last. Brad Beago of
Credit Lyonnais points out that the market is pricing the stock as if oil
were trading in the low $20s per barrel and gas at $3 per million cubic feet,
instead of the $28 and $4.50, respectively, they fetch now. What's more,
Apache's well-known growth-by-acquisition strategy has scared away investors
who fear that a sudden collapse in commodity prices could torpedo the
company's business model.
Such thinking could be a mistake. In the past decade, Apache has spent more
than $10 billion to snap up reserves and production facilities at low prices,
a work in progress that has created a rock-solid asset portfolio with
consistent revenue streams. Recently, the company put the finishing touches
on $1.4 billion in high-profile property acquisitions from the Spanish
concern Repsol and the Australian Fletcher Challenge, deals that have
produced, among other things, gushing oil yields in Egypt and Canada.
"Historically, Apache has done an exceptionally good job on the acquisition
side," says Kenneth Beer of New Orleans-based Johnson Rice. "The upside," he
adds, "now comes from the maturation of their exploration program."
Another intriguing energy play: Williams Cos. (WMB). Known as the poor man's
Enron (ENE), the $19 billion Tulsa, Okla.-based energy powerhouse has a hand
in virtually all areas of the business - gas and oil transportation,
gathering, exploration, refining, power marketing and energy trading, to name
just a few. And like Apache, Williams has been aggressive lately. On Monday,
the company snarled off suitor Royal Dutch/Shell Group (RD) by paying $2.5
billion for Denver natural-gas producer Barrett Resources (BRR), a deal that
not only will be immediately accretive to earnings but also effectively
doubles Williams' proven gas stockpile.
On the accounting front, first-quarter revenues at Williams surged 63%
year-over-year to $3.09 billion, while earnings from continuing operations
shot up to $378.3 million from $138.9 million. Yet Williams' stock, currently
around $39, trades at a 21% discount to its 52-week high of $48.13 set last
August, and just 14 times estimated 2002 earnings. Since rich cousin and
industry standard-bearer Enron trades at 27 times forward earnings, analysts
who cover Williams think the stock is long overdue for a pop.
Finally, investors looking to increase their exposure to the energy sector
should consider the booming area of power generation, an industry that has
consolidated a frightening amount of clout in the disastrously deregulated
state of California and elsewhere. Based in San Jose, Calif., Calpine (CPN)
does the dirty work of generating and selling electricity to utilities and
other third parties. Ironically, the company's two primary fuel sources for
its turbines - natural gas and geothermal - actually make for some of the
cleanest electricity production around.
And Calpine's numbers suggest that green (or at least greener) can be good
from a profitability standpoint. For the three months ended March 31,
revenues skyrocketed to $1.23 billion from $235.4 million, with net income
surging fivefold to $93.7 million. First-quarter earnings per share of 30
cents beat the Street by six cents and persuaded the analyst community to
predict decidedly un-utility-like 45% to 50% annual EPS growth for the
company for the next five years.
While Calpine's healthy 2002 price-to-earnings ratio of 23 is in line with
that of the S&P 500, political momentum is certainly on the company's side.
The Bush administration has taken a hands-off approach to the California
energy crisis, leaving it in the lap of Democratic governor Gray Davis of
California. Still reeling from the bankruptcy of PG&E, the Davis
administration is left with little power aside from exhortation to compel
generators like Calpine to give the state's financially strapped utilities a
break. As California's rolling blackouts make front-page news again this
summer, it will become increasingly clear to Americans that new power plants
are needed to meet our growing energy demand - 1,900 over the next two
decades, according to Vice President Dick Cheney. Flush with cash and
proceeds from the capital markets, Calpine is all too happy to come to the
rescue.
With growth prospects like these, Calpine - along with its underappreciated
cousins Apache and Williams - could make for some exciting talk around the
candle-lit water cooler his summer.
For more information and analysis of companies and mutual funds, visit
SmartMoney.com at http://www.smartmoney.com/

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

India: No To Guarantees For Enron Power Project -Report

05/09/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- India's Finance Ministry has upheld the Maharashtra
state government's decision not to extend financial guarantees sought by
lenders to Enron Corp.'s (ENE) controversial Dabhol Power Co., the Press
Trust of India, quoting state government sources, reported late Wednesday.
The federal government upheld the state government's decision not to provide
escrow cover or increase the limit of a letter of credit, the Press Trust
said.
The Finance Ministry's response, in a letter to the Maharashtra government,
followed demands for the guarantees by the $3 billion power-plant project's
global and domestic lenders, the Press Trust reported.
Enron spokesman John Ambler in Houston couldn't confirm that a letter had
been sent and said it would be inappropriate to comment.
The 2,184-megawatt project - India's single largest foreign investment - has
been mired in financial disputes since the Maharashtra State Electricity
Board, its main customer, failed to pay several bills. Under a 1996
counter-guarantee agreement, the federal government is obliged to pay Enron
when MSEB defaults.
According to the Press Trust, the consortium of lenders asked in a May 1
letter to Finance Secretary Ajit Kumar for payment of the disputed 2.13
billion rupees ($1=INR46.8325) in power bills from December and January,
activation of escrow cover and an increase in the letter of credit amount.
The lenders also asked the federal government to Honiara its counter
guarantees to Dabhol Power under the power purchase agreement with
Maharashtra State.
The lenders are ABN Amro (ABN), Credit Suisse First Boston (Z.CSF), Citibank
NA (C), ANZ Export Finance Ltd, Bank of America (BAC) and the Industrial
Development Bank of India.
Dabhol has come under fire because of the relatively high cost of its power.
Critics object to Dabhol charging INR7.1 a kilowatt-hour for its power,
compared with INR1.5/kWh charged by other suppliers.
As reported, a nine-member state committee headed by retired federal Home
Secretary Madhav Godbole is working to lower the DPC's power tariff and allow
the sale of excess power to the federal government or its utilities. A
restructuring of the DPC's stakeholding may also be on the agenda. The
Maharashtra government has asked the committee to try to negotiate a revised
agreement within a month.
The DPC currently operates a 740-megawatt naphtha plant contributing about
0.7% to India's installed capacity. Enron has maintained that work will be
completed by the year-end in the second phase of the Dabhol project that will
add 1,444 MW to its capacity. The plant will switch from naphtha to liquefied
natural gas as a fuel source in 2002.
Texas-based Enron has a 65% stake in the DPC and is the project's largest
shareholder. Other shareholders include the MSEB with 15%, and General
Electric Co. (GE) and Bechtel Enterprises (X.BTL) with 10% each.
-By Himendra Kumar, Dow Jones Newswires; 91-11-461-9427;
himendra.kumar@dowjones.com

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

N American Newsprint: Publishers Hold Large Inventories

05/09/2001
Dow Jones Commodities Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

CHICAGO -(Dow Jones)- Publishers in the North American newsprint market,
which are holding large amounts of inventory, continued to resist the
recently revised price hike, though prices hadn't suffered further erosion in
the week ended Wednesday.
Producers reduced their original March price hike of $50 a metric ton to $25
a ton, effective May 1.
Market participants said the pressure was on producers to lower prices
further.
"We're selling at the same price and buying at the same price," said a source
at a U.S. merchant, which caters to small- to medium-sized buyers. But added
the source, "I think the ($25 a ton) price increase will get scaled back to
unchanged."
The element setting the last few price increases apart from this year's
increase is that they were implemented during a tight market.
This price hike comes at a time when publishers have considerably reduced
their consumption of newsprint and are holding substantial inventory,
according to publisher sources.
Some of that inventory had been built to beat the March price hike, and it
went unused as advertising linage started to fall beyond expectations.
"I've cut orders because my inventories are going up, up and up," said a
purchasing executive with a major Midwestern daily. "I'm not buying more than
what I have committed under contract."
The executive said other newspaper publishers in the Midwest - Tribune Co.
(TRB) as well as some medium-sized buyers - were facing similar circumstances
and cutting back on newsprint purchases.
The Midwestern daily, whose consumption has fallen 12% mainly due to
advertising linage and classified advertising reductions, held 59 days of
newsprint inventory, the executive said.
Meanwhile, to increase their leverage, some larger publishers turned to
purchasing newsprint from entities like Enron Corp. (ENE), while denying
business to larger producers like Abitibi-Consolidated Inc. (ABY) and Bowater
Inc. (BOW).
Enron physically buys and sells pulp and paper, as well as risk-management
instruments related to forest products, among other commodities.
Transaction prices averaged $620 a ton, but larger newspaper chains paid
between $580 a ton to $610 a ton, sources said. Newsprint's list price is
currently at $635 a ton.
Despite low newsprint consumption and a concerted effort by publishers to
stave off the May price increase, BMO Nesbitt Burns Inc.'s forest products
analyst, Stephen Atkinson, said the price hike should be implemented "without
any problems."
"Yes, there is a slowdown (in consumption), but the power is in the hands of
the producers" following a high degree of consolidation in the newsprint
industry, he said.
"The producers can't drive publishers into bankruptcy, but the publishers are
now finding that they can't drive producers into bankruptcy either," Atkinson
added.
-By Zahida Hafeez, Dow Jones Newswires; 312-750-4132;
zahida.hafeez@dowjones.com

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


what's up jerky


Guess what?  The closing party isn't until Feb. 8.  I had the wrong week!
Glad I didn't show up on the wrong day....

BEAUTIFUL weather.  Might want to sit outside and have a little cocktail (or
equivalent) tonight.  I had Mexican food for lunch, so popcorn for dinner!

Love,

Kay


The following expense report is ready for approval:

Employee Name: Michelle Blaine
Status last changed by:  Automated Administrator
Expense Report Name: MB 5/23/01
Report Total: $13,969.15
Amount Due Employee: $13,969.15

To approve this expense report, click on the following link for Concur
Expense.
http://xms.enron.com


Jeff:

I have the documents ready to be signed in connection with opening the referenced account.  Can you assist me in getting them signed?  The officers who can sign are:

Any one of:

Mark Frevert
Ben Glisan
John Sherriff

together with any one of:

Rick Buy
Rick Carson

Since we don't know the ins and outs as to why we are opening this account for this entity, Sara suggested that you or someone in your shop contact one of the officers from each group to explain the account and ask them to sign the documents.

Once you have determined who will sign, let me know and I'll take care of routing them for signature and getting them to Bear Stearns.

Thanks for your help!

Marie


---------------------- Forwarded by Jennifer Cutaia/Corp/Enron on 12/12/2000
04:12 PM ---------------------------

"Jennifer Cutaia" <jcutaia@tupac.com> on 12/11/2000 03:19:51 PM
To: Jennifer.Cutaia@enron.com
cc:

Subject: [Fwd: ]

>From: Crystal.Reyna@enron.com
>Date: Mon, 30 Oct 2000 09:45:55 -0600
>
>Content-Disposition: inline
>(See attached file: GREATDAY!.pps)

------------------------------------------------------------
Are You Hip?  Get Hip!  http://www.gohip.com

 - GREATDAY!.pps


Mary and Sara:
Sorry that I had to cancel our lunch.  Here are some post-Thanksgiving dates
that work for me:
Monday, 11/27, Tuesday, 11/28, Thursday, 11/30, Monday, 12/4, Friday, 12/8.

Carol St. Clair
EB 3892
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com


I just had to share this with you.  I hope you haven't seen it already.
---------------------- Forwarded by Rebecca W Cantrell/HOU/ECT on 05/24/2001
05:09 PM ---------------------------

"Randall Rich" <rrich@bracepatt.com> on 05/24/2001 05:10:19 PM
To: <llawner@enron.com>, <rebecca.w.cantrell@enron.com>
cc:
Subject: Fwd: The Answer!

Thought you'd enjoy this.
Received: from mcafee.bracepatt.com by mail.bracepatt.com; Thu, 24 May 2001
00:49:13 -0500
Received: FROM hountnmail1.ngccorp.com BY mcafee.bracepatt.com ; Thu May 24
00:59:27 2001 -0500
X-Proxy: keymaster.bracepatt.com protected
From: Betsy.Carr@dynegy.com
Subject: The Answer!
To: tbradley@bracepatt.com, asettanni@bracepatt.com
Sender: Betsy.Carr@dynegy.com
Date: Wed, 23 May 2001 23:11:59 -0500
Message-ID: <OF120FB6CE.1A60FE9A-ON86256A56.0016ECD1@ngccorp.com>
X-MIMETrack: Serialize by Router on HOUNTNMAIL1/HOUSRV/Dynegy(Release 5.0.5
|September 22, 2000) at 05/24/2001 12:44:04 AM
MIME-Version: 1.0
Content-type: multipart/mixed ;
Boundary="0__=86256A560016ECD18f9e8a93df938690918c86256A560016ECD1"
Content-Disposition: inline

finally.......

(See attached file: windmilldavis.gif)

 - windmilldavis.gif


Hi Stacy -

Dick Jenkins has expressed concern with the description of an EnronOnline
location and wants an immediate revision.  The location description needing
revision is the TETCO M3.  It is currently defined as follows:

The transaction is for delivery at Texas Eastern Transmission Corp. - Zone M3.

Dick wants to ensure that the delivery shall also include any location on the
M3.  Therefore, please advise as follows:

The transaction is for delivery at Texas Eastern Transmission Corp. - Zone
M3, and all downstream delivery on the M3.

We need to get a ticker item posted on the website as soon as possible.

Thanks -

Rob
x35491


At Gerald's request, I am forwarding a Sample Master Agreement.  As you may know, we currently have a GISB in place with Platte River.

 dp

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


YES, SEE YOU TOMORROW. MARK

> -----Original Message-----
> From: Dasovich, Jeff [mailto:Jeff.Dasovich@ENRON.com]
> Sent: Monday, October 29, 2001 9:06 AM
> To: mbaldwin@igservice.com
> Subject: RE:
>
>
> Really appreciate it.  Will you be attending?
>
> -----Original Message-----
> From: mbaldwin@igservice.com [mailto:mbaldwin@igservice.com]
> Sent: Friday, October 26, 2001 2:10 PM
> To: Dasovich, Jeff
> Subject: RE:
>
>
> Jeff, yes Tues at 10:00 a.m. in Sacramento. Gwen in my office will firm
> up
> the schedule. Mark, IGS.
>
> > -----Original Message-----
> > From: Dasovich, Jeff [mailto:Jeff.Dasovich@ENRON.com]
> > Sent: Wednesday, October 24, 2001 2:06 PM
> > To: mbaldwin@igservice.com
> > Subject:
> >
> >
> > Hi Mark:
> >
> > Any chance of meeting with you and the gang from DWR on Monday morning
> > or sometime Tuesday?
> >
> > Best,
> > Jeff
> >
> >
> > **********************************************************************
> > 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.
> > **********************************************************************
> >
>


Looks good to me--and I agree that we ought to use if for internal purposes
only.  If people at the customer meeting want more detail than you guys are
able to provide orally, we could consider adding detail to the FERC filing or
even sending them some additional explanation that we may or may not decide
to file with FERC.  Good luck today!  DF

Jeffery Fawcett
08/31/2000 09:11 AM
To: Steven Harris/ET&S/Enron@ENRON, Kevin Hyatt/ET&S/Enron@Enron, Steve
Kirk/ET&S/Enron@ENRON, Jo Williams/ET&S/Enron@ENRON, Glen
Hass/ET&S/Enron@ENRON
cc: Susan Scott/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON

Subject: revised TW Options Q&A

I'm distributing [internally] the brief answers we've crafted for each of the
customer's questions.  I think we're on pretty solid ground in each case.  As
mentioned below, we won't be distrubuting these answers during the workshop.
We'll use them for our own purposes in answering the questions orally.  If
you have any questions regarding this issue, please let me know.

---------------------- Forwarded by Jeffery Fawcett/ET&S/Enron on 08/31/2000
09:08 AM ---------------------------

Jeffery Fawcett
08/31/2000 09:07 AM
To: Susan Scott/ET&S/Enron@ENRON
cc: Drew Fossum/ET&S/Enron@ENRON

Subject: revised TW Options Q&A

Susan,
You hit the ball right down the middle.  I think we've answered these
questions [more than] adequately.  I do not intend to distribute these
answers in written form.  Rather, we'll answer them orally during the
presentation, and use your work product as a guideline for our answers.
Thanks for your hard work here.

	From:  Susan Scott                           08/30/2000 10:04 PM

To: Jeffery Fawcett/ET&S/Enron@ENRON
cc: Drew Fossum@ENRON

Subject: revised TW Options Q&A

Jeff, here's a slightly revised version of my bottom-line answers to Conoco's
questions.
Am I remembering correctly that this is for internal distribution only?
Again, I'll be out until around 10:30 tomorrow but you can reach me on my
mobile (713.494.5002) before 9 or after 10 if there's anything you want to
discuss.  Drew -- same goes for you.


Attached is a revised nomination letter incorporating comments received.
Please review