Trust And Antitrust
The New York Times, 06/24/01

Looking at E-Business From Both Sides Now
The New York Times, 06/24/01

Getting Serious About Earth-Friendly Energy
Los Angeles Times, 06/24/01

ENERGY CRUNCH / Power players lay blame / Deregulation creators defend their
actions
The San Francisco Chronicle, 06/24/01

USA: California power refund talks begin Monday at FERC.
Reuters English News Service, 06/24/01

PGE CRITICIZES ELECTRICITY PRICE LIMITS
Portland Oregonian, 06/24/01

India: Calcutta HC rejects EMC plea
Business Line (The Hindu), 06/24/01

India: DPC lenders unhappy with S&W report
Business Line (The Hindu), 06/23/01

Enron CEO gets pie in face
Press Trust of India Limited, 06/23/01

POWER POLLUTION NO LAUGHING MATTER
South Florida Sun-Sentinel, 06/23/01

San Francisco Tourists Just Roll with the Outages
Contra Costa Times - Walnut Creek, California, 06/23/01

El Paso Awaits Decision as Generators Prepare to Face Lawsuits
Bloomberg, 06/23/01

Alleged Power Overcharges May Be Less Than Calif Argues
Dow Jones Energy Service, 06/22/01

Editorial Desk; Section 4
Reckonings
Trust And Antitrust
By PAUL KRUGMAN

06/24/2001
The New York Times
Page 13, Column 1
c. 2001 New York Times Company

When the European Commission indicated it was likely to block the proposed
merger between General Electric and Honeywell, American politicians from
George W. Bush on down cried foul, with some alleging that the decision was
politically motivated. They're almost certainly wrong about that, but it is
true that the E.C.'s case against the merger is far from watertight. Mario
Monti, Europe's competition referee, may have made a bad call on this play.
Nonetheless, our politicians should lower their voices. Mr. Monti is one of
the good guys in today's global economy. He should not be made the target of
attempts at political intimidation.
To put the G.E.-Honeywell affair in context, you need to realize that this
case is a triple switcheroo: it contradicts not one but three pieces of
conventional wisdom.
First, the conventional view is that globalization weakens governments,
because it forces them to compete for private investment. Broadly speaking,
this view is right. (Conventional wisdom usually is.) There are, however,
exceptions to the rule, and antitrust policy is one of those exceptions. In
today's world, no company can compete effectively unless it can operate
freely on both sides of the Atlantic -- which it can do only with a green
light from antitrust authorities in both the United States and Europe. The
result is that instead of eroding the power of those authorities,
globalization has extended their reach: American regulators can block
European mergers, and vice versa.
Second, this case inverts traditional roles. Until recently, only the U.S.
seemed to take antitrust policy seriously. Europeans might have U.S.-style
legislation on the books, but they often seemed to feel that cartels, like
extramarital affairs, were nothing to worry about as long as the participants
were discreet -- and they were scornful toward puritanical Americans who
insisted on enforcing the letter of the law. Lately, however, Europe has
gotten serious about antitrust, giving the competition commissioner broad
powers to block mergers and investigate allegations of anticompetitive
behavior. Mr. Monti, an American-trained university professor who assumed
that office in 1999, has used those powers aggressively. General Electric and
Honeywell are by no means the first companies to find Mr. Monti blocking what
they thought was a done deal.
Was Mr. Monti right to block this particular deal? It's a complicated issue.
Let's just say that the case against this merger is similar to the case for
breaking up Microsoft, though it seems a lot weaker. On the other hand, you
don't need as strong an argument to block a merger as you do to break up a
going concern. We're in a gray area, with the precise shade of gray a matter
of opinion.
Even if you disagree with Mr. Monti's opinion, however, his sincerity is not
in doubt. The best answer to those who claim that this is really a
protectionist ploy is Mr. Monti's track record: he has repeatedly shown
himself willing to oppose the demands of powerful European interest groups.
Why would he suddenly become a tool of protectionists?
And that leads us to the third switcheroo. Europeans are accustomed to cozy
cohabitation between politicians and businessmen; Americans tend to insist on
at least the appearance of an arms-length relationship. But just at the
moment when the Europeans have placed competition policy in the hands of a
sternly upright professor, the United States has acquired an administration
that seems oblivious to normal concerns about conflict of interest.
It's not yet clear whether the Bush administration really is a government of,
by and for big corporations to an extent not seen since Warren G. Harding was
president, or whether it just looks that way. But the stories keep
accumulating. Intel's chief lobbyist says that his highly inappropriate
meetings with Karl Rove were ''quite useful'' to its merger case -- and Mr.
Rove didn't even get a slap on the wrist. According to the outgoing chairman
of the Federal Energy Regulatory Commission, the head of Enron offered to
support him at the White House if he changed his policy positions. And it
took three months -- and a sharp prod from Jake Tapper at Salon -- before
Treasury Secretary Paul O'Neill honored his promise to sell his Alcoa stock.
As a consumer, I'm not sure I trust these people to protect me from the
market power of giant corporations.
And so it's nice to know that Mr. Monti is out there, looking after my
interests.

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

Money and Business/Financial Desk; Section 3
BOOK VALUE
Looking at E-Business From Both Sides Now
By FRED ANDREWS

06/24/2001
The New York Times
Page 6, Column 1
c. 2001 New York Times Company

BOOKS about e-business have proliferated over the last year. Undeterred by
the dot-com crash and financial travails of many Internet companies, business
publishers have turned to churning out an ever-widening array of guides to
help well-established companies prosper on the Web.
The books range from simplified manuals to weighty analyses of the dynamics
of e-business ventures. Here are two examples at opposite ends of the
spectrum: ''D2D: Dinosaur to Dynamo'' by David Stauffer (John Wiley & Sons,
$27.95), and ''Place to Space: Migrating to E-Business Models'' by Peter
Weill and Michael R. Vitale (Harvard Business School Press, $35).
At first blush, ''D2D'' is a once-over-lightly account, a scissors-and-paste
recycling of other books and the business press, duly footnoted, to be sure.
The pages are salted with so many diverting lists, special boxes and
eye-catching headlines (''Why the Web Can Be Farmer-Friendly'') that the main
text is an annoying weave through an obstacle course. With short paragraphs
and lots of space between lines, the book cried out to be skimmed.
But Mr. Stauffer, who has written books about America Online and Cisco
Systems and many articles explaining how companies have adapted to the
Internet, has assembled a fascinating menagerie of 20 businesses that have
taken to e-business with great success. His brief histories include the
obligatory e-favorites -- Enron, General Electric, Charles Schwab -- as well
as peers like Ford Motor and Bertelsmann. But he also tells you about Snap-on
Inc., DoveBid industrial auctioneers, the Antevia Inc. relocation service and
Powell's Books of Portland, Ore., a thriving ''independent'' whose
68,000-square-foot flagship is one of the nation's largest bookstores.
Powell's began in 1970, buying lightly used textbooks for next to nothing and
reselling them at substantial mark-ups. Now a $36 million business, Powell's
has found its Web site ideal for matching a used, rare or out-of-print title
from its enormous holdings with someone, somewhere, who wants to buy it.
Unlike Amazon.com, its famous competitor, Powell's makes money online (and
has done so from Day 1). Its annual sales volume of $232,000 per online
employee is higher than Amazon's. And what happens to books that customers
return to Amazon? Powell's buys them, at nearly 80 percent off the cover
price.
Further afield, Tesco, the huge supermarket chain in Britain, has become a
leading Internet grocery by tying its Web delivery service to its local
stores. Snap-on, of Kenosha, Wis., sells high-quality tools for auto
mechanics through 6,000 franchisees who drive its distinctive white vans; the
company solved its ''channel conflicts'' by paying franchisees for Internet
sales as though they had made the sales themselves. DoveBid, an $80 million
appraiser and auctioneer of used business and industrial equipment, has
pioneered simultaneous live and Web auctions.
Like a baseball scout who prefers the honesty of minor league ball, Mr.
Stauffer pays these less prominent players refreshing respect. Though he
commonly relies on second-hand material, he is scrupulous with footnotes and
credits. His judgments are not bad, and in more than half the histories he
adds his own interviewing. Each chapter opens with a capsule company profile
and closes with ''Leader's Lessons,'' the author's observations.
A final chapter on ''what it takes to make it'' is nothing out of the
ordinary. Mr. Stauffer says the digital world requires a ''vocal and
unflagging'' chief executive. He also says a company needs ''bricks and
clicks that don't discriminate'' -- in other words, don't think of online and
offline as separate markets. His other advice: provide added services and
follow the rule that it's better ''to be fast than to be right.''
The book concludes with 60 offhand homilies on e-business success. No one
will accuse ''D2D'' of being profound.
But what's not to like about an all-star team that makes room for tiny
Quality Transmission Service, a $400,000, six-employee operation in Tempe,
Ariz.? Its founder, Bob Jones, built a shoestring Web site that has become a
model for local businesses. His ''Ask Bob'' feature attracts 10 or 12
questions a day. The Web site has lured customers from 35 miles away (the
shop's normal reach is 10 miles) and reliably brings in two or three new
customers a week -- a 15 to 20 percent increase for Mr. Jones's business.
''PLACE TO SPACE,'' more academic than other e-biz books, offers as clear an
explanation of the anatomy of e-business as one could expect. From extensive
study, the authors have concluded that all e-business can be reduced to one
or another of eight basic building blocks, which then combine into more
complex companies, like atoms forming a molecule.
Mr. Weill is director of the Center for Information Business Systems at
M.I.T.; Mr. Vitale is dean and director of the Australian School of
Management at Sydney. Their strength is not originality but the clarity and
thoroughness of their analysis.
Their eight building blocks, which they call ''atomic e-business models,''
are already part of the digital vocabulary. The array includes
direct-to-customer sales (Amazon, for instance); full-service providers (GE
Supply); shared infrastructure (reservation systems); virtual communities
(Motley Fool); portals, auctions and aggregators (Yahoo and eBay), and
content providers (AccuWeather and Morningstar).
The book devotes a methodical chapter to each, dissecting what each way of
doing e-business assumes, how it works, what holds it together. A tutorial
follows on infrastructure, distribution channels and market segments. The
authors cover core competencies, strategic objectives and sources of value.
Eventually, this extensive learning is distilled into seven pages of tables,
laying bare the logic of all eight models and enumerating, say, nine factors
critical to a direct-to-customer business like Amazon's or three core
competencies for running a virtual community like iVillage.
Some readers may like the crisp schematics that accompany the text. Others
may mistake the drawings for an attack plan for multiple-warhead nuclear
missiles. The schematic of an Internet-based investment business has six big
arrowheads on the left, three on the right, all menacing a big black
rectangle, along with smaller arrows and dotted lines.
No question, this book is homework. Thankfully, the authors leaven the
abstract, didactic parts of their work with abundant examples from a
half-dozen cogent case studies. Among the cases are Reuters, CDNow, GE Supply
and, especially interesting, Lonely Planet, the Australian publisher of
travel guides for vagabonds.
From one lone title 30 years ago (''Across Asia on the Cheap''), Lonely
Planet has prospered to about 600 titles, 400 employees and 65 million
Australian dollars (about $34 million) in revenue for 2000. Its Web site
draws three million daily hits, reflecting the attraction of the Thorn Tree
chat room, where travelers keep in touch and exchange tips by posting 1,500
messages a day. Lonely Planet also offers global voice mail and CitySync, a
digital download of guides to major cities. It has undertaken the ambitious
job of converting all its guides, maps and detailed research to accessible
digital form.
Even on this solid base, e-business raises tough questions for Lonely Planet.
How can it make money from the two million fans of its Web site? Should it
try? How should it handle ''channel conflict'' and balance sales from the
Internet with its traditional retailers' interests?
As its rule of thumb, Lonely Planet looks for some assurance that it will get
a 50 percent gross margin before embarking on a new guide. The authors ask
whether e-business ideas are ever firm enough to meet that hurdle. And most
intriguing, the authors write that Lonely Planet has ''a huge opportunity''
to reinvent the travel guide by customizing digital guides to a traveler's
itinerary and tastes, with digital updates delivered along the way.
THOUGH newly published, ''Place to Space'' is already dated. The authors
refer to the ''partial'' fall of dot-coms but not to the later convulsions.
The book continually describes (but does not necessarily praise) e-ventures
long since laid low. What reader would suspect that Motley Fool just
announced its second round of layoffs this year or that Hearst narrowly
rescued iVillage from Nasdaq delisting? The book notes that in four months,
Priceline.com signed up nearly 500,000 customers for its ultimately
disastrous Web-based grocery service. ''The approach seems popular,'' the
authors observe.
Though every book risks obsolescence from events, their study gives little
hint of the coming tempest. Reading ''Place to Space'' is like watching a
video visit to the zoo without knowing that the lion, the walrus and most of
the monkeys have died. The book's explanatory value still stands, but the
dot-com massacre does raise questions about what some examples actually
exemplify.
Still, the book has endearing touches. At one point, the authors explain the
remarkable success of Asian airlines in putting bickering aside and building
Abacus, a joint computer reservation system. The decision to cooperate rather
than compete, they say, ''was probably motivated by a combination of fear and
greed.'' How often do you find candor like that?

Photos

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

Business; Financial Desk
JAMES FLANIGAN
Getting Serious About Earth-Friendly Energy
JAMES FLANIGAN

06/24/2001
Los Angeles Times
Home Edition
C-1
Copyright 2001 / The Times Mirror Company

The growing concern about global warming--even President Bush concedes the
need to reduce carbon dioxide emissions--promises a shift to nonpolluting
energy sources and new attitudes toward environmental investment in industry
in the years ahead.
Change will be more gradual than dramatic, perhaps a 20% rise in use of wind
and solar power to generate electricity and the beginnings of commercial use
of fuel cells to drive cars and trucks by 2010.
Nonpolluting, renewable energy will still make up less than 7% of total U.S.
energy consumption 10 years hence, predicts the Energy Department. But trends
will be established in this decade.
Business will base investment on environmental concerns as never before.
Reminders that the Earth's temperature will rise for the next 50 years no
matter what we do now will bolster development of energy-efficient machines
and industrial processes.
The chemical firm DuPont Co., for example, aims to reduce emissions of
greenhouse gases--carbon dioxide and methane--by 65% over this decade. Also
by 2010, DuPont hopes to rely on renewable sources for 10% of its energy use.
That 10% estimate may not sound heroic, but it's based on the expectation
that renewable energy will be cost-competitive with oil, natural gas and
coal, says Paul Tebo, DuPont's vice president for environmental and health
policies. "It's important that renewables become cost-competitive because
investing in them if they're uneconomic creates other problems," Tebo says.
Where does the business of renewable energy stand today? Wind power is
attracting a lot of investment and will grow rapidly in the next few years.
Solar power now boasts $2.7 billion in annual sales worldwide; only 25% of
those sales, however, are in the U.S.
Fuel-cell development is intense, with every major automotive company backing
research and testing pilot projects for on-board power plants in which
hydrogen energy drives the car and most of the exhaust is clean water. By
2008, vehicles propelled by fuel cells will be used by early adopters, as
hybrid cars are today, says Dan Sperling, head of the Institute for
Transportation Studies at UC Davis, a major center of fuel-cell research.
More than $1.5 billion will be invested this year in projects to generate
electricity from wind power, says Randy Swisher of the American Wind Power
Assn. in Washington. That's double the previous highest investment total.
Investment is growing because wind power has become efficient. A single
windmill generator today is capable of doing the work of 10 windmills of the
1970s, when wind-power experiments began.
Wind generation can deliver electricity at 3 cents to 6 cents a
kilowatt-hour, promising a $15 to $30 electric bill for the average home that
uses 500 kilowatt-hours per month.
In addition, wind-power projects are being encouraged by a federal tax credit
of 1.5 cents per kilowatt-hour to the investing companies.
FPL Energy, a subsidiary of Florida's FPL Group, and Enron Wind Corp., a
subsidiary of Enron Corp., are the largest companies in wind generation. But
mostly it is a business of small firms and investment partnerships.
Zilkha Renewable Energy, a privately held Houston firm, will be involved in
$100 million worth of wind-power projects this year in Iowa, Pennsylvania,
California and Britain, often in partnership with Denmark's EnXco Inc.
Denmark gets 15% of its electricity from wind power, a typical percentage for
European countries, which are more environmentally conscious than the U.S.
Solar energy is still comparatively expensive, producing electricity from
photovoltaic cells at 20 cents to 30 cents a kilowatt-hour. That would equate
to monthly electric bills of $100 to $150 for the average home.
Solar energy can be produced more cheaply by vast solar arrays in desert
areas. This method, called thermal, can produce power at 10 cents a
kilowatt-hour today, says Avi Brenmiller, chairman of Solel Solar Systems, an
Israeli firm that built a giant solar thermal plant in California's Mojave
Desert.
An irony is that Israel, a largely desert country, does not use a lot of
solar power to date--mostly because conventional fossil-fuel power has been
cheaper, Brenmiller says. Brenmiller looks for new solar projects to be
launched in the U.S. and abroad as a result of uncertain energy prices and
availability.
The main cost of solar energy is the capital needed to build panels of solar
cells on roofs of homes and buildings and on farms to run irrigation. "After
the plant is built, the cost of fuel--the sunlight--is essentially zero,"
observes Marwan Masri, director of renewable energy for the California Energy
Commission.
State and federal grants of up to half the capital cost encourage solar
projects. Masri is working with home builders to install solar cells in all
homes in new subdivisions, so the cost of providing energy can be amortized
over 30 years along with the home mortgages.
Meanwhile, solar energy powers buildings, traffic lights and irrigation
projects around the world, with Japan and Germany using more solar energy
than the U.S.
BP Solar, a division of BP; Kyocera Corp. of Japan; and Siemens of Germany,
which owns the former Westinghouse Electric Corp. in the U.S., are global
leaders in solar.
But the technology of solar cells, akin to that of semiconductors, is still
under development. Small firms, such as Evergreen Solar Inc. of Marlboro,
Mass., and AstroPower Inc. of Newark, Del., are working on cheaper and more
effective ways to make solar cells, reports analyst James LoGerfo of Banc of
America Securities.
In fuel cells, Xcellsis, a joint venture of DaimlerChrysler, Ford Motor Co.
and Ballard Power Systems Inc., has developed fuel-cell engines based on
methanol and gasoline for demonstration models being tested in Germany and
the U.S.
Fuel cells that derive hydrogen from gasoline, methanol or natural gas are
less environmentally ideal than improved models that will appear later in the
decade.
But, clearly, new industries that will change the way the world lives are
taking their first big steps. And concerns about global warming that are
giving these industries a push today won't diminish in the years ahead.
Climate change that will add 2.5 to 10 degrees to the Earth's temperature
over the next 50 years is already assured because of heat from past emissions
that is stored in the world's oceans, reports UC Irvine Chancellor Ralph J.
Cicerone, a renowned atmospheric scientist, who headed a recent study of
global warming for President Bush.
As temperatures mount, so will sentiment and pressure for new thinking on
energy, environment and the world economy.
*
James Flanigan can be reached at jim.flanigan@latimes.com.

PHOTO: More than $1.5 billion is expected to be invested this year in
wind-power projects.; ; PHOTOGRAPHER: Zilkha Renewable Energy Co.; PHOTO:
Zilkha Renewable Energy of Houston is at work on this wind-power project in
California's Altamont Pass area.; ; PHOTOGRAPHER: Zilkha Renewable Energy Co.

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

NEWS
ENERGY CRUNCH / Power players lay blame / Deregulation creators defend their
actions
Robert Salladay
Chronicle Sacramento Bureau

06/24/2001
The San Francisco Chronicle
FINAL
A.1
(Copyright 2001)

Five years after dismantling California's energy markets, former Gov. Pete
Wilson says he's proud of his role in deregulation and is "stunned and
outraged" that his successor tries to pin the blame on him.
Former state Senate President pro tem Bill Lockyer, now the state attorney
general, is both contrite and vengeful, recently saying he wanted to put a
powerful energy executive -- and friend of President Bush -- in prison with
an amorous cellmate named Spike.
Former Assembly Speaker Curt Pringle, presently a lobbyist, now forwards
e-mail jokes to fellow Republicans with Davis re-election slogans, including:
"Davis in 2002: Your bridge to the 18th century."
These were the leaders who brought deregulation to California. As they engage
in deflections and defenses one year after the state plunged into crisis,
their comments also highlight a newer debate over unintended consequences,
the role of the federal government in making things worse, and the
neglectfulness of subsequent politicians.
For his part, Wilson has become increasingly angry at the Davis
administration's "offensive and unfair" claims that Wilson and the
Legislature got the state into this mess.
"I'm afraid they have reached the conclusion that the response has been too
little, too late to avoid what will be hundreds of hours of blackouts, and
that they better find a way to blame somebody else," Wilson said.
Davis, he said, has blamed "the new administration in Washington, the old
administration in Sacramento, power providers. It's interesting, because
there was not a peep out of the lieutenant governor (Davis) at the time
during what I thought was a fairly active and public debate. He was hardly
without a voice, but he certainly was without comment."
Wilson said Davis' performance over the past year called into question Davis'
1998 campaign slogan. "I used to laugh when he talked about being the
best-trained, best-prepared candidate in history," Wilson said. "But what the
hell."
DEREGULATION BILL
A tiny legislative committee that was dominated by state Sen. Steve Peace,
D-El Cajon, and then Assemblyman James Brulte, R-Rancho Cucamonga, wrote the
deregulation bill in 1996. Corporate lobbyists and utilities also had
tremendous sway over the legislation. Pringle, Lockyer and Wilson steered the
legislation their way.
The bill was a reaction to movements under way at the California Public
Utilities Commission and in the federal government. The bill essentially
unbundled the big utilities' monopoly over power, separating control of
selling, marketing and producing energy.
It also was supposed to cut rates 10 percent and pay utilities hundreds of
millions of dollars for investments they'd made in nuclear power and other
energy plants.
Wilson said Davis should, in fact, be grateful that the 1996 deregulation
bill encouraged power companies to expand into California. He contends that
without the measure, the state would be faced with a regulated market and
10,000 fewer megawatts of power -- and more blackouts.
DAVIS' COMPLAINTS
Davis has continually said that California failed to build power plants in
the 12 years before his administration. In truth, seven smaller power plants
were built during Wilson's eight years, and deregulation started the process
on a host of others that are now being approved more quickly by the Davis
administration.
"We wanted to entice investors," Wilson said. "You can't do that if they're
not allowed to compete."
Wilson acknowledges that the state misread exactly how quickly California
would grow. During the high-tech boom, Silicon Valley built acres of "server
farms" to supply the Internet that accounted for a large amount of the
increase in new power usage in California.
Peace has point-blank blamed executives at Cisco Systems. He has said they
should be thrown in jail for simultaneously supplying the server-farm boom
and opposing the building of a power plant in Santa Clara County. Cisco
opposed the 600-megawatt plant, it said, to protect the health and welfare of
its employees nearby.
Wilson doesn't go as far as Peace in wanting to jail people. And he's not
willing to accuse out-of-state generators of price-gouging, in part because
"blanket condemnation" may scare away further investment in California -- and
it ignores that some municipal utilities in California charge high prices as
well.
"If they find that people have in fact manipulated the market," Wilson said,
"then they ought to come down hard on them."
LOCKYER'S HARDER LINE
As attorney general, Lockyer has opened an investigation into whether power
companies have conspired to push up electricity prices and gouge consumers.
Unlike Peace and Wilson, Lockyer is unwilling to defend the 1996 legislation
and deregulation.
"If I could repeal it and start all over again, I think that I would," he
said.
But even Lockyer acknowledges that the Legislature needed to do something in
1996. That's because it appeared inevitable that the utilities and corporate
interests would get some form of deregulation through the state PUC and the
federal government, which had already opened up the natural gas market.
"Our energy experts thought the PUC was doing it in a way that was overly
friendly to big business and would have ended up having residential customers
subsidizing big business," Lockyer said. "The efforts were made to try to
figure out how to make the market competitive without tilting toward big
business."
The real killer in deregulation, Lockyer contends, is that neither the
Legislature (himself included) nor the governor paid enough attention to the
supply end. That allowed a handful of firms to have near-total control over
power output, Lockyer said. Peace has called this the "domestic equivalent of
OPEC in the West."
Lockyer has been busy demonizing power firms as well. He still faces
criticism for telling the Wall Street Journal his plans for Kenneth Lay,
chairman of the Texas energy trader Enron Corp.: "I'd love to personally
escort Lay to an 8-by-10 cell that he could share with a tattooed dude who
says, 'Hi, my name is Spike, honey.' "
Lockyer, who told The Chronicle he was directing his comments to the East
Coast financial establishment, toned down a bit in a more recent interview.
"The system works well. It doesn't work when there is illegal activity and a
handful of companies that control the whole market," Lockyer said.
And then there is Pringle, who generally has escaped questioning for his role
in getting the 1996 measure passed.
Pringle said he had little impact on the legislation, relying instead on
Brulte.
But he puts some blame on consumer groups that offered Proposition 9 in 1998,
which set out to roll back much of the deregulation measure.
Wilson has charts from the state energy commission showing the application to
build plants spiked up after the measure was defeated. "At the most critical
moment," Pringle said, "when we were trying to suck development into the
state, you had trepidation."
Wilson, Lockyer and Pringle have been relatively silent on the matter when
compared with Peace.
Peace has been waging his own relentless war, both defending the 1996
legislation and accusing the federal government of "creating a flawed
national model of electricity deregulation and then (failing) to confront the
consequences."
The real culprit is far more complicated than just Proposition 9, Peace
contended in a recent letter to Bush.
The state PUC, he said, ordered utilities in the early 1990s to build more
plants, but the utilities got federal regulators to overrule the order.
Among other things, he said, the federal government uncritically adopted a
flawed plan separating the West's transmission system from the generation of
electricity. That allows generators to extort the grid operator by
threatening to withhold power, he added.
Pringle said he can't even attempt to get as detailed as Peace when it comes
to explaining what went wrong.
"Everyone has a degree in which they need to stand up, but the people in
charge today are in charge of fixing it," Pringle said. "If you want to go
around the rosy and say did Republicans blow something? Yeah. Did Wilson?
Yeah. Lockyer, Brulte, Peace? Yeah. The consumer associations? We're all
tagged."

PHOTO (5); Caption: (1) Bill Lockyer, state attorney general, raked energy
CEOs., (2) James Brulte, assemblyman, helped craft deregulation., (3) Curt
Pringle, ex-Assembly speaker, scorned Davis., (4) Steve Peace, state senator,
wants Cisco Systems execs., (5) Pete Wilson, ex- governor, rapped Gov. Gray
Davis.

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

USA: California power refund talks begin Monday at FERC.
By Chris Baltimore

06/24/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, June 24 (Reuters) - California officials looking to win some
payback from power generators who have reaped huge profits from selling
electricity to the state and its utilities get an opportunity this week to
prove their case and push for up to $9 billion in refunds.
A Federal Energy Regulatory Commission (FERC) administrative law judge
overseeing refund settlement talks in California's power market said Friday
the energy firms that sold electricity in the state will probably have to pay
back overcharges of "several billion dollars."
In an interview with Reuters, Judge Curtis Wagner, the head FERC
administrative law judge who will preside over the 15-day conference starting
Monday, said California Gov. Gray Davis' claim the state was owed $9 billion
was excessive.
"I think that's high," Wagner said when asked about Davis' figure.
"I'm hoping to come up with a settlement of the issue of a refund of
overcharges - if there are overcharges. My sense is that there probably are,"
he said.
FERC clarified late on Friday that the settlement talks are not limited to
possible California refunds, but may also focus on settling past accounts
related to other power sales in the Pacific Northwest.
Enron Corp. , Mirant Corp. , Duke Energy Corp. , Williams Cos. , Reliant
Energy Inc. and Dynegy Inc. are among the producers that FERC could compel to
make refunds. The companies have said they did nothing wrong.
Davis, the California Public Utilities Commission and the state's
investor-owned utilities will join in the negotiations at FERC headquarters
in Washington. If no agreement is reached, Wagner will have seven days to
make a recommendation to the five FERC commissioners on the refund issue.
The chasm of opinions between the two sides is huge. Davis says power
companies like Duke and Enron collectively owe his state $9 billion in
refunds for overcharges, a far cry from the $130 million in refunds FERC has
so far approved.
Reliant is one of the energy companies that bought power plants divested by
California utilities as a condition of the state's ill-fated deregulation
plan. Along with firms like Dynegy and Enron, it sold power from those plants
to the state for rates at up to $1,000 a megawatt hour.
ENERGY FIRMS BALK AT REFUND DEMAND
Energy producers have balked at Davis' $9 billion figure.
"Obviously we don't agree with figure," said a spokeswoman for Reliant
Energy. "We don't think it's anywhere close to that magnitude."
A Dynegy spokesman said $9 billion was excessive, and Dynegy was "willing to
discuss any reasonable proposals that will lead to a long-term solution."
Davis has painted the energy companies as modern-day robber barons looking to
"bilk" his state out of millions of dollars.
"California has been a cash cow to a lot of energy companies ... that have
done extraordinarily well," the California governor said last week during
Senate testimony.
Davis said he based his figure on a study by the California Independent
System Operator's Department of Market Analysis, which said wholesale prices
exceeded "reasonable competitive market levels" by about $6.7 billion between
May 2000 and February 2001. Extended through May 2001, that amount is closer
to $8.9 billion.
"Refunds are ... a primary vehicle to provide relief" to high energy prices,
Davis said at a Senate hearing Wednesday. "They should be repaid."
Davis accused FERC commissioners of being "asleep at the switch" for not
taking prompt action on refunds.
As part of FERC's price mitigation plan adopted last week to rein in rampant
prices in the California wholesale power market, the agency required all
public utility buyers and sellers to participate in the conference.
All California generators, investor-owned utilities, some municipal utilities
and state officials from the Public Utility Commission and Davis' office will
attend, Wagner said.
The administrative law judge said reaching an agreement in the 15-day period
scheduled for the conference was "going to be tight."
"But it's something we need quick action on," he added. "Sometimes it's best
to have a short time period to do something."
Wagner is also separately hearing the California Public Utilities
Commission's complaint accusing El Paso Corp. of improperly sharing
information with its natural gas marketing arm to boost the price of natural
gas deliveries to California.
The judge has found himself at the center of a political whirlwind over the
role U.S. regulators should take to head off the California energy crisis.
The White House has repeatedly rejected price caps, while Democrats insist
they are the only way to shield rate payers from prices ten times higher than
usual.
"The political arena is not making it any easier," Wagner said, though he
said no lawmaker had contacted him directly on the issue.

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

BUSINESS
PGE CRITICIZES ELECTRICITY PRICE LIMITS
GAIL KINSEY HILL of the Oregonian Staff

06/24/2001
Portland Oregonian
SUNRISE
F01
(Copyright (c) The Oregonian 2001)

Summary: The utility says the federal action could make Oregonians the losers
this winter
When federal regulators set price limits last week on wholesale electricity
in the West, they intended to buffer rate increases for consumers and ease
energy shortages in the region.
They may have failed on both counts, at least in the Northwest, according to
Oregon's largest utility.
"Oregonians could well be losers," said Fred Miller, executive vice president
of Portland General Electric, which serves 728,000 residential and business
customers in the state.
PGE officials were so disturbed by the Federal Energy Regulatory Commission's
order that on Friday they faxed a letter to Oregon's congressional delegates
warning that the provisions could increase the likelihood of shortages in the
Northwest this winter, hamper conservation efforts and discourage developers
from building new power plants.
PGE may be the commission's harshest critic in the Northwest. By late last
week other utility officials were still sorting through the 50-page order the
commission posted Tuesday, trying to figure out whether the order bore good,
bad or inconsequential news.
PacifiCorp, Oregon's second-largest utility, declined to comment until
officials had thoroughly reviewed the order.
Some hoped for relief from high-cost power purchases. Others fretted over a
bad situation made worse. But none of the utility officials interviewed by
The Oregonian embraced the order as a sure- fire antidote to energy shortages
and rising retail rates.
PGE serves about 40 percent of the state's electricity customers, primarily
in the populous northern Willamette Valley. The utility, a subsidiary of
power marketer Enron Corp., has opposed price caps ever since policy-makers
began bandying about the idea some months ago.
Under the commission's order, price limits move up or down based on the
operating costs of the least efficient gas-fired power plant called into
service in California during a declared power emergency.
The floating cap is a relatively tame approach to price controls, but PGE
still doesn't like it.
"If you freeze prices, you're going to get more demand and less supply," the
very responses utilities have been trying to counter, Miller said.
During the past year, PGE benefited from high-priced markets. It bought more
power than it needed to serve customers, then sold the excess at a profit.
The strategy is not s sure thing. PGE could have lost money. But it came out
ahead, and it used the proceeds to waylay rate increases.
While utilities throughout the Northwest were raising rates by double digits,
PGE was holding steady.
"We bought long," Miller said. "That's how we avoided rate increases."
Miller has another big worry. This winter. The regulatory commision's order
links the price caps to the operating costs of the least efficient gas-fired
plant operating in California during electric emergencies. In nonemergency
times, the limit falls to 85 percent of that price.
That means the lower price likely will prevail in winter, when demand
slackens in California but rises in the Northwest. Miller maintains the lower
price could discourage suppliers from selling into the region, which
increases the likelihood of shortages in the Northwest.
"Maybe what's most irksome," said Miller, "is that we essentially have turned
over our future this winter to the Californians."
Then, there's B.C. Hydro, a power provider that often sells large amounts of
power to the Northwest in the winter. The price controls may not apply to the
Canadian utility, and Northwest buyers may be forced to pay top dollar for
the imports they often need in winter months.
In its letter to congressional delegates, PGE says it will contact FERC "and
suggest ideas on how the Western energy scenario can be improved but without
unfairly transferring these problems to PGE's customers."
In addition, Miller expects developers who have announced plans to build
power plants may pull away because prices no longer justify the investment.
PGE, Miller said, may scrap two small projects capable of adding about 70
megawatts to the electricity grid.
Debating benefits
When federal regulators issued their order, they said the entire West would
soon feel the benefits of more stable prices.
"The commission's goal remains to fix dysfunctional markets and to ensure
that markets regain their competitive footing as quickly as possible," said
Curt Hebert Jr., chairman of the Federal Energy Regulatory Commission'
Responses from other utility officials in the Northwest varied, but none
predicted an easing of rates for consumers.
"We have a mixed reaction to it," said Mark Crisson, Tacoma Power's director
of utilities. "At least they finally did something, but, at this point, it's
too little too late."
Tacoma Power, a municipal utility, was among the first to feel the hit of
high electricity prices, which began their infamous rise in May 2000. Caught
short of electricity as dry weather depleted water needed for hydro-powered
generators, Tacoma rushed to the short term, or "spot" market to cover
customer demand. On one memorable December day, after colder temperatures set
in, it paid almost $3,000 a megawatt-hour, 100 times the usual rate.
Six months ago, the utility raised rates by 50 percent on average, said Mike
Crisson, Tacoma Power's director of utilities. At the same time, it pushed
for price caps but got nowhere.
"We needed them right away," Crisson said. "Here we are, six months later and
they're half-measures."
In the meantime, Tacoma Power, reduced its dependence on the spot market by
locking in long-term contracts, Crisson said.
Other utilities in the region took similar action.
"We're pretty much protected," said Neil Neroutsos, a spokesman for Snohomish
County People's Utility District, Washington's second largest utility.
Seattle City Light, governed and operated by the city, is Washington's
largest utility.
Snohomish raised its rates by 35 percent Jan. 1.
Eugene Water and Electric Board locked in some longer-term contracts to
reduce its reliance on the wholesale market and could actually lose money on
the strategy. If the utility ends up with a surplus and has to sell the extra
power on the market, the caps could make the transactions money-losers, said
Scott Spettel, the utility's power and planning manager.
Even so, Spettel expects the price controls to help more than hurt.
"All in all, lower prices are good for consumers," he said.
Waiting on BPA
Many Northwest utilities, particularly ones that are government-. or
member-owned, rely heavily on Bonneville Power Administration for electricity
and haven't yet heard whether the federal caps will affect new BPA rates to
take effect Oct. 1.
BPA, a federal agency based in Portland, markets almost half the electricity
consumed in the Northwest. It will announce its new rates, which could jump
by more than 75 percent, late this week.
"The order's fairly complex," said Steve Oliver, vice president of bulk power
for BPA. "We're still taking a look."
This summer, BPA will neither buy nor sell much power on the spot market and,
therefore, rarely will deal with the price limits.
Another factor dulling the effect of the regulatory action is the market
itself. Earlier this year, spot prices routinely hit $200 to $300 a
megawatt-hour. They recently dropped to below $100 a megawatt- hour and have
stayed below triple-digit territory.
The weeks ahead likely will put the caps to the test. When hot summer days
sweep through California, spot prices are expected to rise as rapidly as the
mercury.
Energy experts project that Federal Energy Regulatory Commission'sprice
limits will hold prices to about $130 to $150 a megawatt hour. The
projections assume natural gas prices don't spike again.
You can reach Gail Kinsey Hill at 503-221-8590 or by e-mail at
gailhill@news.oregonian.com.

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

India: Calcutta HC rejects EMC plea

06/24/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

KOLKATA: Mr Justice Prabir Kumar Samanta of the Calcutta High Court rejected
the petition of Electrical Manufacturing Co Ltd (EMC) seeking a directive
from the court to strike down an order of the lower court.
A Civil Judge (Senior Division) of the Sealdah Court vacated an ad-interim
order relating to repayment of loan granted by Enron India Pvt Ltd to EMC to
the tune of Rs 6 crore for constructing a transmission line under the
Maharashtra State Electricity Board.
- Our Bureaus

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

India: DPC lenders unhappy with S&W report

06/23/2001
Business Line (The Hindu)
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

MUMBAI, June 22. LENDERS to Dabhol Power Company have asked the engineering
consultant, Stone and Webster (S&W), to rework its report on the cost
implications of mothballing the Dabhol power project.
The lenders were not happy with the consultants for having delayed the
report, it is learnt. Also, the costs were not ratified by Enron.
They have reportedly written to S&W asking it to have a relook at the options
available and rework the figures.
According to sources, the lenders were not satisfied with the costs of
various options worked out by the consultant. Lenders are still deliberating
on a remedy that could be best in the current situation.
According to some reports, S&W had estimated the cost of completing the
project at around $400 million. However, the figure could not be confirmed.
The consultant was mandated to compute the cost of three alternatives -
suspend the project as it stands now without any penalties, mothball the
incomplete project, or complete the project with lenders' funds and then
mothball it. At present, 92 per cent of the project is complete.
The termination of the agreements by construction contractors had almost
ruled out the first option. However, the lenders reportedly were not happy
with Enron too for "contributing" to the delay.
The sources say there is also a possibility that Enron may try to persuade
the contractors to reconsider their decision as the lenders are open to all
options.
Lenders feel that if the consultant had given a thorough report on time, some
arrangement could have been chalked out. S&W was supposed to complete the
report in a week from June 7. That would have enabled the lenders to reach a
concrete decision on funding the rest of the project. Indian lenders have not
met or formally discussed the issue after the Singapore meeting on June 5 and
6.
- Dinesh Narayanan

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

Enron CEO gets pie in face

06/23/2001
Press Trust of India Limited
(c) 2001 PTI Ltd.

Washington, June 22 (PTI) Enron Chief Executive Officer Jeffrey Skilling was
hit on the head with a pie as he defended energy companies against the
criticism that they created an energy shortage and profiteered from it during
a speech at the Commonwealth Club of California.
Skilling wiped the pie, which had been heaved by activist Francine Cavanaugh,
and carried on with the speech. Cavanaugh was detained but not arrested.
US Senate candidate and consumer activist Medea Benjamin said Cavanaugh was
from an international pie-throwing group called the Biotic Baking Brigade.
The group has thrown pies at several notable figures, including Microsoft
co-founder Bill Gates and Mayor Willie Brown.
Enron has come under fire after accusations from Californian Governor Gray
Davis and State officials for allegedly forcing electricity prices skyward by
holding back supply.
Enron and other companies have denied such charges. They claim that the State
and State-based utilities owe them billions in unpaid bills.
(THROUGH ASIA PULSE) 23-06 2001

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

EDITORIAL
POWER POLLUTION NO LAUGHING MATTER

06/23/2001
South Florida Sun-Sentinel
Broward Metro
14A
(Copyright 2001 by the Sun-Sentinel)

Mr. Lowe's cartoon on the very important issue of power plants was very
irresponsible and played only for laughs.
Anyone in his right mind would not place three power plants, two of which
will burn dirty diesel fuel (Enron's), in an urban area, within two miles of
each other.
There are hospitals, schools, homes, community centers, nursing homes, etc.,
under the shadow of a combined seven 80-foot smokestacks spewing out their
poison.
There are much better options: such as cleaner plants spread out over a much
larger area. Florida Power & Light and the Broward County Commission have
stated that Florida has enough power for the next 10 years. A moratorium
hopefully will be put in place for one year to wait for the 20/20 study. What
is the rush? Is it because Enron, a megabusiness along with their strong
political presence (the White House and governor's mansions) has a complete
disregard for the people?
Maybe the next very funny cartoon by Lowe will be a few babies choking while
the smokestacks are burning. Humor is important, but let him know the facts
before he uses his barbs.
Ann Mantell
Coconut Creek

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

San Francisco Tourists Just Roll with the Outages
Jasmine Kripalani

06/23/2001
KRTBN Knight-Ridder Tribune Business News: Contra Costa Times - Walnut Creek,
California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

SAN FRANCISCO--Tourists are constantly asking the gift shop manager at Coit
Tower if a blackout could occur while they ride the elevator to the top of
the 210-foot fire hose nozzle-shaped landmark.
"They're serious when they ask it. I always tell 'em, `We got the last guy
out in only three days,'" said Walt Lo.
Tour guides, hotel managers and gift shop clerks in the Bay Area have
developed a sense of humor about the California energy crisis. But for many
visitors the perception of blackouts conjures up images of streets without
traffic lights and people trapped in elevators.
Before leaving their Indiana suburb for vacation, Mike and Lisa Bonahoom
worried about what was ahead, but not enough to stop them from booking a
three-night stay at the room designed by former Grateful Dead frontman Jerry
Garcia in the Hotel Triton.
"The perception in the Midwest is that (Californians) don't have lights,"
said Mike Bonahoom.
Lisa, added: "We heard news reports that they shut the lights off every day
(at a set time) in order to save electricity, and people would plan their day
around that I worried about getting stuck in an elevator for hours, but I
didn't mention any of this to the kids."
It's a fear California's travel and tourism commission is taking so seriously
that it has handed a public relations firm about a half-million dollars to
plan an advertising campaign that will convince the rest of the world that
it's still safe to travel to the Golden State.
Communications director Fred Sater blames visitors' fears on the media's use
of the term "rolling blackout."
"`Planned outage' or `power interruption' -- that's the correct phrase," he
said. Sater believes "rolling blackout" inaccurately implies long periods of
darkness across the state.
The San Francisco visitors bureau has taken a less expensive approach. It has
posted a letter and Frequently Asked Questions list on its Web site
(www.sfvisitor.org) that assures potential visitors that emergency services
are still available and that they won't get stuck on an amusement park ride.
But all the warnings in the world wouldn't have done much good on Thursday at
about 1:10 p.m. when the lights in parts of San Francisco flickered, then
went out for about an hour.
Pacific Gas & Electric said 7,000 of its customers were without power and
attributed it to a bad cable between Broadway and Vallejo on Mason Street.
One of those customers included a souvenir shop near Fisherman's Wharf.
Kathy Joy had to wait several minutes before she could complete a sweatshirt
purchase. The cashier rushed to the front of the store with her solar-powered
calculator in hand and returned with a total.
"That'll be $19.90," Sharon Stevenson told Joy and added that she could only
accept cash. Joy had the cash.
Other stores, many of which mistook the outage for a blackout, were forced to
shut down their businesses.
Sean Farber, a sales manager at Studio 39, a video-making business in which a
person's body is transposed on a backdrop of the Golden Gate Bridge, took
advantage of the power outage to express his political viewpoint by posting a
sign that read: "Thanks to PG&E, Enron, and George W Bush We will be closed
until 3:00."
Others saw the outage as an entrepreneurial opportunity.
"Hey, folks, there's a rolling blackout. You might as well go on a Bay
cruise," a tour operator loudly offered.
Many didn't even notice the hourlong power outage.
Two visitors from Naples, Fla., who were in town for the NASCAR races,
noticed the darkened businesses only after a reporter pointed it out.
"Well, if this means I can't get into the pub, I will be very upset," said
Craig Barrero, who was clad in shorts and toting a video recorder.
Other tourists said the only time the energy crisis has affected them is when
they're ready to check out of their hotel room.
When Robyn and Ben Reeve from Australia walked into their room at the Hilton
on Fisherman's Wharf, they found the usual amenities: tightly tucked linens
between mattresses and the bathroom towels symmetrically draped over a brass
bar.
The Reeves also found a letter from the general manager informing them that
they would have to pay a $2.85 energy tax per night.

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

El Paso Awaits Decision as Generators Prepare to Face Lawsuits
2001-06-23 11:56 (New York)

El Paso Awaits Decision as Generators Prepare to Face Lawsuits

     (For more on California's energy crisis, see {EXTRA <GO>}

     Washington, June 23 (Bloomberg) -- El Paso Corp., the owner
of the biggest network of interstate natural-gas pipelines, is the
first company to face a public hearing on charges of manipulating
California energy prices. It likely won't be the last.
     U.S. Administrative Law Judge Curtis Wagner is to decide by
Sept. 24 on allegations that El Paso held natural gas off the
California market to boost prices. The U.S. Federal Energy
Regulatory Commission can accept or reject Wagoner's ruling.
     The case was brought by the state's two biggest utilities and
the California Public Utilities Commission, which also is working
with state Attorney General Bill Lockyer on a civil lawsuit
against power producers. Lockyer plans to convene a grand jury
next month to investigate claims that the generators withheld
electricity to drive up prices.
     ``You're getting the attorney general and the CPUC looking at
potentially going into court,'' said Mark Easterbrook, an analyst
with Dain Rauscher Wessels. ``Investors just don't want to deal
with this uncertainty.''
     The Standard & Poor's Utilities Index, whose members include
generators Mirant Corp., Duke Energy Corp. and Reliant Energy
Inc., has fallen 8 percent in the past month. The S&P Natural Gas
Distributors & Pipe Lines Index has dropped 17 percent. It
includes El Paso and energy traders Enron Corp., Dynegy Inc. and
Williams Cos.
     California's electricity prices rose more than ninefold in
the first quarter from a year earlier, and state officials
forecast that shortages during hot weather may bring as many as 30
days of blackouts through August.
     Generators have repeatedly said they didn't break the law,
blaming high prices on rising demand and a lack of new supply. No
major power plants have been built for a decade in California.
     ``These investigations are built around some sort of odd
theory of market manipulation, and we did absolutely no such
thing,'' Mirant spokesman Chuck Griffin said. ``Our dealings have
been above-board and according to the rules that were established
before we were even in the market.''

                           Common Theme

     Both El Paso and the generators are accused of withholding
supplies to drive up prices. Lockyer says power companies held
back electricity under the guise of routine plant maintenance,
forcing utilities to pay soaring prices for megawatts that
remained on the market.
     The El Paso case stems from the Houston-based company's sale
of California-bound pipeline capacity to its merchant-energy unit.
Plaintiffs allege the El Paso unit withheld the billion cubic feet
of space to drive up natural-gas prices in California. Gas is used
to fuel many of the state's power plants.
     FERC economists testified on behalf of the CPUC and the
utilities, PG&E Corp.'s Pacific Gas & Electric and Edison
International's Southern California Edison. California gas prices
ranged from $11.79 to $18.80 per thousand cubic feet by December,
compared to $4 to $7 elsewhere in the U.S., a FERC study showed.
     ``At least part of the FERC staff took seriously the idea
that a firm could establish market power and raise prices,'' said
Severin Borenstein, director of the University of California's
Energy Institute, who isn't involved in the El Paso trial.

                            Gas Prices

     El Paso argues that gas prices surged because the state's
electricity shortage spurred generators to run their plants almost
nonstop, and utilities' credit risk increased as they ran out of
cash buying power at soaring prices.
     Judge Wagner finished hearing testimony this week on the
market-manipulation charge. He is now investigating claims that El
Paso's merchant-energy unit unfairly won the 15-month pipeline
contract.
     Whatever the outcome, the hearings may educate California
investigators about energy trading. State deregulation of energy
markets has boosted profits for trading companies that buy and
sell electricity and natural gas.
     ``California is learning how to understand the energy
markets,'' said Michael Aguirre, a former prosecutor handling two
lawsuits against power companies, one for California Lieutenant
Governor Cruz Bustamante. ``The learning curve has been a very
steep one.''

Alleged Power Overcharges May Be Less Than Calif Argues
By Jason Leopold

06/22/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

OF DOW JONES NEWSWIRES
LOS ANGELES -(Dow Jones)- Nearly every energy company, including municipal
utilities, that has the ability to supply California with electricity has
allegedly overcharged the state tens millions of dollars over the course of a
year, according to the state's power grid operator.
But the $9 billion total in alleged overcharges detailed by Gov. Gray Davis
to the U.S. Congress this week may have been overstated by more than $2
billion, according to documents obtained by Dow Jones Newswires.
Generators whose wholesale power prices are regulated by the Federal Energy
Regulatory Commission, or FERC, allegedly overcharged the state $2.1 billion
from May to September 2000 and $2.6 billion between October and February,
according to the ISO. FERC can order refunds only from October onward because
of a federal law that requires a filing for refunds to be made within 60 days
of the purchases, according to FERC. The ISO began appealing for refunds in
December, claiming the alleged overcharges were a result of market power, or
the ability to boost wholesale prices above competitive levels.
However, a $1 billion alleged overcharge by Sempra Energy Trading Corp. and
San Diego Gas & Electric, both units of Sempra Energy (SRE), was deleted by
the ISO, according to the documents. The ISO wouldn't explain the reason it
erased the company's alleged overcharge.
Generators said Davis's numbers "didn't add up" and maintained that they
didn't overcharge the state.
The ISO said it planned to recalculate the figures but the agency didn't
discredit Davis's refund estimate.
Some of the numbers calculated by the ISO are much higher than the companies'
entire earnings for 2000, according to earnings statements.
Energy companies with the largest overcharges between May 2000 and February,
as alleged by the ISO:
British Columbia Power Exchange Corp.: $439 million
Aquila Inc. (ILA): $48 million
Automated Power Exchange: $16 million
Calpine Corp. (CPN): $236 million
Coral Power LLC: $27 million
Duke Energy Corp. (DUK): $804 million
Electric Clearinghouse Inc. (DYN): $530 million
Enron Corp. (ENE): $39 million
El Paso Corp. (EPG) : $29 million
Idaho Power (IDA): $28 million
Portland General Electric: $44 million
Puget Sound Energy: $24 million
Reliant Energy Inc. (REI) $750 million
Mirant Corp. (MIR), formerly Southern Co., $753 million
Sempra Energy Trading Corp. (SRE): $82 million (this number has been
eliminated by the ISO)
Williams Cos. (WMB) $860 million
-By Jason Leopold, Dow Jones Newswires; 323-658-3874;
jason.leopold@dowjones.com

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


---------------------- Forwarded by Ami Chokshi/Corp/Enron on 06/30/2000
10:02 AM ---------------------------

Royal_B_Edmondson@reliantenergy.com on 06/30/2000 09:52:41 AM
To: ami_Chokshi@enron.com
cc:

Subject: Intra day Midcon

(See attached file: HPL-June.xls)
 - HPL-June.xls


---------------------- Forwarded by Mary Hain/HOU/ECT on 01/31/2001 02:01 PM
---------------------------

Mary Hain
01/30/2001 02:38 PM
To: scott.miller@ferc.fed.us
cc:
Subject: ISO problems

At your request, here's a write-up of our problems with the ISO.

Issue 1 - Concerning the intertie going North out of California into the
Northwest (NW) at the California Oregon Border (COB), since about the 24th of
January, the ISO has started telling market participants that the available
transmission capacity, which is usually 2300 MW, is zero.  Last Friday, this
caused prices to increase at the Mid-Columbia (NW trading hub) by about
$50-75, costing the NW wholesale market an estimated $2-5 million per day.
This transmission capacity is within the ISO's control and, because capacity
is available, the ISO's actions seem to violate Order No. 888.  I also wonder
what would happen if another control area decided they were going to take
similar action.  This hurts Enron financially because we own FTRs and if
there is no congestion, we don't get paid anything.  This is like "economic"
force majeure.  The reason the ISO is listing zero ATC is that they're in a
Stage 3 Emergency and they're not offering sufficient price/credit terms to
get the power they need.  California obviously thinks its power needs are
more important than the NW's.

Issue 2 - We have transmission we are purchasing from some California munis
using transmission facilities that are not part of the Cal ISO.  The ISO
advised today that they are thinking about cutting exports from California.
We are concerned that the ISO will cut our transaction even though it uses
transmission assets and rights that are not under the ISO's control.  If our
deal were cut, it could cost us $20,000 to $100,000 per hour (we have a 125
MW deal and spreads now are $125 and they would likely blow out more if
exports were cut).   We hesitate to call the ISO and ask if they are going to
cut us because we are afraid we might suggest something that they haven't
thought of.

I'd be happy to answer any questions.  I'm at (503) 464-8862.


Gentlemen, I need your assistance in resolving some outstanding FCC issues.  We have a license in the name of Enron Communications which I have directed to Michelle Hicks for resolution.  However, there is a company by the name of Enron Puerto Rico, Enron Processing Properties (in Louisiana), Enron Methanol, and Louisiana Resources Company for which I have had no responses from attorneys handling the FCC audit.  Jim Derrick told me that he believed, with the exception of Enron Processing Properties that the above companies were or are under your direction. If so, could you please assign an attorney to work with me to straighten out the outstanding licenses?  If you know anything about Enron Processing Properties, I would appreciate any guidance that you could give me even if it is a hunch.

	Thanks.


Mark Powell:

The changes seem appropriate to me; however, I will defer to Jeff Hodge, my
fellow Committe member, on giving the Commitee's approval to this set of
recommended changes due to his involvement in the Blue Range matter.

	Peter Keohane
	09/13/2000 07:31 PM

		 To: Mark Powell/CAL/ECT@ECT
		 cc: Alan Aronowitz/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Jeffrey T
Hodge/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Greg Johnston/CAL/ECT@ECT, Chris
Gaffney/TOR/ECT@ECT, Sharon Crawford/CAL/ECT@ECT
		 Subject: Re: Proposed Amendments to the Physical Master re: Blue Range

Mark, I agree with your analysis, conclusions and amendments.  Well done.  I
trust the Legal Trading Committee will also agree, but I will be interested
by their response.

Peter.

	From:  Mark Powell\CAL\ECT                           09/13/2000 05:25 PM

Sent by: Mark Powell
To: Alan Aronowitz/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT, Jeffrey T
Hodge/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT, Mark Taylor/HOU/ECT@ECT
cc: Chris Gaffney/TOR/ECT@ECT, Greg Johnston/CAL/ECT@ECT
Subject: Proposed Amendments to the Physical Master re: Blue Range

Please see the attached memo and blacklined Master Firm Gas Purchase/Sale
Agreement.


It looks like Reliant is now using air quality requirements as justification
for their high prices at their plants in CA.  We are checking to confirm that
their facilities are in fact reaching their emission ceilings.

Pressure builds on Davis to relax air standards

Updated: May 24, 2001 - 2:22 p.m.

A major electricity supplier said Thursday it will sharply cut prices
for power from three Southern California plants in anticipation that
air quality monitors will let the plants release more pollution this
summer.

Meanwhile, aides said Gov. Gray Davis will consider paying
businesses to run heavily polluting diesel generators to boost the
state's power supply and help avert rolling blackouts.

Reliant Energy said it could chop its power bids from the high of
$1,900 per megawatt hour Davis criticized this month to as little as
$150 per megawatt hour -- but only if air regulators quickly allow it
to exceed pollution standards at the three plants.

The Houston-based generator will cut its prices immediately, but
will soon be forced to shut down three of its five Southern California
plants for the rest of the year if pollution standards aren't lifted, said
Joe Bob Perkins, president and CEO of Reliant Energy Wholesale
Group.

Davis singled out Reliant's $1,900-per-megawatt-hour charge earlier
this month as an example of the egregious prices he said
generators should voluntarily cut.

Reliant said it deliberately bid the high price to discourage the
state's power grid operator from calling its high-polluting plants into
use. Using the plants now eats up valuable pollution credits that
will likely be needed to keep the plants running during even higher
demand periods this summer, the company said.

"In essence, we are doing exactly what Gov. Gray Davis has
suggested. But if these restrictions are not lowered, we will run out
of power from these units very quickly," Perkins said in a
statement.

Perkins proposed that emissions hours not be counted against
Reliant's yearly allotment whenever the plants are called into
operation to help prevent blackouts.

Reliant's Mandalay, Etiwanda and Ellwood plants each face annual
air pollution limits imposed by the South Coast Air Quality
Management District and the Santa Barbara County and Ventura
County air pollution control districts. Reliant has asked for
extensions from each of the districts.

"There's no question we are in an emergency situation. We will
consider every option available" to avert blackouts, said Davis
spokesman Roger Salazar. But he said the administration had not
seen Reliant's proposal.

Davis also will consider paying businesses to fire up their backup
generators when necessary to avoid outages, Salazar said.
Running the generators would let the businesses disconnect from
the state's power grid, freeing up electricity for other uses.

The proposals have consumer and environmental groups outraged.

"It's a short-term fix that will have potential long-term health
consequences," said Paul Knepprath of the American Lung
Association of California.

The state should instead cut demand by encouraging more
conservation, the lung association and 18 other consumer and
environmental groups said in a letter to Davis on Wednesday.

Davis already is promoting conservation, but blackouts have health
and public safety consequences too, Salazar said. The use of
backup generators is being proposed by the administration's top
energy advisers, but Davis has not yet seen the proposal, Salazar
said.

The governor is willing to "explore every conceivable option for
generation this summer," Salazar said.

The twin developments come the same week the administration cut
by 20 percent its estimate of new power generation that will be
available this summer. Davis now projects 4,000 additional
megawatts, 1,000 megawatts short of his original estimate. A
megawatt is enough power for about 750 homes.


Tracy,

Here is the calculation for your information.

Thanks
Dawn

 -----Original Message-----
From: 	Geaccone, Tracy
Sent:	Thursday, September 13, 2001 6:28 AM
To:	West, Terry
Cc:	Derr, Dawn
Subject:	RE: MMF allocations

Thank you.  Did the percentage calculation change?

 -----Original Message-----
From: 	West, Terry
Sent:	Wednesday, September 12, 2001 4:38 PM
To:	Geaccone, Tracy
Cc:	Derr, Dawn
Subject:	MMF allocations

Attached is the draft of the MMF allocations.  You will note that most companies are very close the 2001 amounts, with the exception of Plains.

 << File: Corp_2002_Alloc_MMF.xls >>


pls get for Cindy.  Thanks  df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/25/2001
05:31 PM ---------------------------

Cindy Stark
01/25/2001 04:13 PM
To: Bill Cordes/NPNG/Enron@ENRON, Shelley Corman/ET&S/Enron@ENRON, Steve
Hotte/Corp/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Phil
Lowry/OTS/Enron@ENRON, Danny McCarty/ET&S/Enron@Enron, Rockford
Meyer/FGT/Enron@ENRON, Michael Moran/ET&S/Enron@ENRON, Gary P
Smith/OTS/Enron@ENRON, Julia White/ET&S/Enron@ENRON, James
Prentice/GPGFIN/Enron@ENRON, Dana Gibbs/Houston/Eott@Eott, Drew
Fossum/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Robert
Hayes/FGT/Enron@ENRON, Robert Kilmer/FGT/Enron@ENRON, jerry.martin@enron.com,
Dorothy McCoppin/FGT/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Michel
Nelson/ET&S/Enron@ENRON, Dave Neubauer/ET&S/Enron@ENRON, Dan
Pribble/OTS/Enron@ENRON, Randy Rice/OTS/Enron@ENRON, Scott
Vonderheide/Corp/Enron@ENRON
cc:

Subject: PERSONAL INFORMATION REQUESTED

Hello, everyone!   This is to request your assistance in obtaining the
following information for Stan:

To Stan's Direct Reports:   Please provide me with your home phone number and
a pager or cellular number.
To the Remaining Officers: Please provide me with your home phone number,
work number, pager or cellular number, Assistant's name, Assistant's work
    number and your office fax number.

Please provide me this information via return e-mail.

Thanking you in advance for your prompt attention to this matter.

Cindy


John,

Just wanted you to be aware.  No action required - water under the bridge.

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/26/2001 01:23
PM ---------------------------

Jake Thomas@ECT
04/26/2001 09:15 AM
To: Kay Mann/Corp/Enron@ENRON, Stephen Thome/HOU/ECT@ECT
cc:

Subject: Re: ENA/PPL Escrow Agreement

 I thought that I was very clear about the deadline of 10AM Eastern time.
Tell Carolyn to wake up.  Carolyn has set an expectation that is totally
unexceptable and unfortunately to late to change.  I do not think that anyone
external to Enron takes this timeing issue seriously.  This delay has cost
Enron $15,000.  Every day that goes by and this deal does not close costs
Enron $15,000 -

 PS - voice mail in portland is down today - it would appear that PGE
contracts to fix this stuff during working hours - no wonder we can't sell
this company.

Jake

Kay Mann@ENRON
04/25/2001 09:35 PM
To: Stephen Thome/HOU/ECT@ECT, Jake Thomas/HOU/ECT@ECT
cc:
Subject: ENA/PPL Escrow Agreement

The fun never ends.
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/25/2001 11:35
PM ---------------------------

"Campbell, Carolyn" <CCampbell@KSLAW.com> on 04/25/2001 10:04:52 PM
To: "'estelle.a.lawrence@citi.com'" <estelle.a.lawrence@citi.com>,
"'barbara.bennett@citi.com'" <barbara.bennett@citi.com>
cc: "'gregorylang@paulhastings.com'" <gregorylang@paulhastings.com>,
"'iparker@freshfields.com'" <iparker@freshfields.com>, "'kay.mann@enron.com'"
<kay.mann@enron.com>

Subject: ENA/PPL Escrow Agreement

Estelle and Barbara:

PPL's lenders have requested two items relating to the escrow prior to
funding:

1.  Fax copy of the Escrow Agreement signed by Citibank; and
2.  E-mail confirmation that the escrow account has been opened.

Can you please furnish these items as early as possible on Thursday morning.
The parties intend to fund the escrow before 10:00 central time.  The money
needs to make one stop before it gets to you, so the earlier it can get
started the better.  Please furnish these items to the following
individuals:

1.  Carolyn M. Campbell (fax 713-751-3280) (ccampbell@kslaw.com)
2.  Greg Lang (fax 203-674-7646) (gregorylang@paulhastings.com)
3.  Isabel Parker (fax 212-277-4001) (iparker@freshfields.com)

Thank you.

Carolyn M. Campbell
King & Spalding
713-276-7307 (phone)
713-751-3280 (fax)
ccampbell@kslaw.com <mailto:ccampbell@kslaw.com>

                    Confidentiality Notice
This message is being sent by or on behalf of a lawyer.  It is intended
exclusively for the individual or entity to which it is addressed.  This
communication may contain information that is proprietary, privileged or
confidential or otherwise legally exempt from disclosure.  If you are not the
named addressee, you are not authorized to read, print, retain, copy or
disseminate this message or any part of it.  If you have received this
message in error, please notify the sender immediately by e-mail and delete
all copies of the message.


-----Original Message-----
From: 	Howard, Kevin A.
Sent:	Tuesday, February 12, 2002 10:35 AM
To:	Hayslett, Rod; Geaccone, Tracy; Chandler, Bob; Saunders, James; Corman, Shelley
Cc:	Desai, Jayshree
Subject:	NNG 10 year valuation model

I met with Jayshree Desai this morning to discuss the recommended changes to the NNG valuation model.  She will make these and circulate the model later today.  I few items worth mentioning -

1) Capex assumptions still seem too high for 2002-2004.  However, the 2002 number is some $30 million below the "Dynegy transition" capex amount shown in the 2002 Capex schedule.  Can we just assume non-discretionary only with the Base Gas repurchase in 2002/2003? Any discretionary would be commercially-driven. [Geaccone, Tracy]  The lower capital is probably from the revised plan.  I am okey with the other assumption.
2) Keep O&M flat to 2001 numbers? [Geaccone, Tracy]  Costs have been reduced due to Dynegy transition.  If we assume under our control, costs would be the same or slightly lower.  I would propose the same for now.
3) Tracy / Shelley - Any thoughts on how to incorporate the contract info to better analyze the "contract roll off" scenarios? We have just assumed the 2002 Plan with 1-2% growth rate going forward with a new rate case in effect in 2005. Rod, not sure how you want to look at rate case assumptions or expansion opportunities but we can discuss tomorrow.  Recognizing the volume of NNG contract info and the time constraint we are under, there may or may not be any better alternative. [Geaccone, Tracy]    I think this is a good assumption
4) Rod - we have assumed an equity infusion of $175 million to re-capitalized NNG to more "reasonable" levels.  I can reduce the amount to $112,500,000 which is the Citibank prepay amount allocated to NNG if that sounds reasonable.
5) We will show a reduction in A/R of $1.807 billion and a corresponding reduction in equity due to the MCTJ loan.

Any thoughts you have on the above items would be very helpful.  We are trying to send out the info memo by the end of the week.  This model will be the basis for the NNG valuation.

Thanks,
Kevin


Hi Shannon,

Could you be sure to remove my name from the distribution and replace it with George Huan...he has taken over my roll running the options book.

Thanks,
Susan

---------------------- Forwarded by Susan M Scott/HOU/ECT on 03/26/2001 05:07 PM ---------------------------
From:	Shannon McPearson/ENRON@enronXgate on 03/20/2001 03:24 PM
To:	Errol McLaughlin/Corp/Enron@ENRON, Susan M Scott/HOU/ECT@ECT, Chance Rabon/ENRON@enronXgate, Kori Loibl/HOU/ECT@ECT
cc:
Subject:	0201 PMA's

Here are the PMA's as of February 2001 accounting. Please call if you have any questions. Nothing for you this month, Kori!!

Thanks!

Shannon McPearson
Enron North America
713-853-5944
Shannon.McPearson@enron.com


On May 15, 2001, National Grid filed a petition for declatory order in Docket
No. EL01-80 asking the FERC to find that it is not a "market participant"
with respect to the ARTO region in order that it can seek to become the
Managing Member of the Alliance RTO.  The filing was noticed and
comments/protests are due June 14, 2001.

National Grid, a company that operates in New England, claims that it retains
only insignificant generation assets and wholesale marketing operations in
regions remote from the Alliance region (i.e. New England and New York after
the NIMO merger is completed).  It has minor "last resort" sales obligations
which they expect to terminate by 2005.  National Grid will not be providing
ancillary services to the ARTO region.

Let me know if there are any concerns with this filing that EPMI should raise
to the FERC.


No action is required by Legal on above list.


---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/06/2001
01:21 PM ---------------------------

Pat Shortridge
07/06/2001 01:18 PM
To: John Shelk/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Chris
Long/Corp/Enron@ENRON, Richard Shapiro/NA/Enron@Enron, Mark
Palmer/Corp/Enron@ENRON, Carolyn Cooney/Corp/Enron@ENRON
cc:

Subject: Davis & Company -- incompetence personified

You hate to say that someone can't do anything right, but THESE GUYS CAN'T DO
ANYTHING RIGHT.

California Power-Buying Data Disclosed in Misdirected E-Mail
By Daniel Taub
Sacramento, California, July 6 (Bloomberg) -- California Governor Gray
Davis's office released data on the state's purchases in the spot electricity
market -- information Davis has been trying to keep secret -- through a
misdirected e-mail.
The e-mail, containing data on California's power purchases yesterday, was
intended for members of the governor's staff, said Davis spokesman Steve
Maviglio. It was accidentally sent to some reporters on the office's press
list, he said.
Davis is fighting disclosure of state power purchases, saying it would
compromise negotiations for future contracts. This week, Davis appealed a
state judge's order to release spot-market invoices, purchase orders and
confirmation sheets for power contracts signed through June 27. The state is
buying electricity on behalf of utilities, which are burdened by debt.
``It's an internal document,'' Maviglio said of the e-mail. ``We have a
meeting every morning where we discuss issues of the day.'' The e-mail
contained minutes of today's meeting, he said.
According to the e-mail, the state bought 283,000 megawatt- hours of
electricity for $37.4 million yesterday. One megawatt- hour is enough
electricity to light 750 typical California homes for an hour. Prices ranged
from $25 to $149.99 a megawatt-hour. Maviglio said the information in the
e-mail is accurate.
Power for next-day delivery during peak-use hours averaged $79.67 a
megawatt-hour on the California-Oregon border yesterday, according to
Bloomberg Energy Service. California paid an average of $132 on the spot
market, according to the e-mail. Prices on the spot market tend to be higher
than on the day-ahead market.
The governor has proposed releasing data on spot-market purchases once a
quarter, arguing that the state uses power-buying strategies tailored to each
season. Lawyers for the media and Republican legislators say state law
requires disclosure of contracts within seven days after they are signed.


Terry, Maggie and Sheila, if you get comfortable with the direction
	these emails are going, then we do NOT need to meet.  Let me
	know if you feel like we need to group together to finalize this issue
	and be sure we are on the same page.  Otherwise, I would ask that
	Maggie or Hasan do a final results email and let us know what the
	outcome is.  Thanks for everyone's help on getting this issue behind us.
	Lynn

 -----Original Message-----
From: 	Matheson, Maggie
Sent:	Monday, October 08, 2001 10:00 AM
To:	Kedwaii, Hasan; Blair, Lynn; Medeles, Gerry; Betancourt, Ramona ; Kowalke, Terry; Buchanan, John; Nacey, Sheila
Cc:	Holmes, Bradley; Garcia, Ava; DL-ETS TMS Modification Group
Subject:	RE: Scheduled quantity reports

I agree with Hasan, changing the "Scheduled Quantities Report" to "Operator Scheduled Quantities Report".  Leave the meter bounce off the name since the meter bounce is an internal option only.

Maggie

 -----Original Message-----
From: 	Kedwaii, Hasan
Sent:	Monday, October 08, 2001 9:52 AM
To:	Blair, Lynn; Matheson, Maggie; Medeles, Gerry; Betancourt, Ramona ; Kowalke, Terry; Buchanan, John; Nacey, Sheila
Cc:	Holmes, Bradley; Garcia, Ava; DL-ETS TMS Modification Group
Subject:	RE: Scheduled quantity reports

The view in TMS that is used for submitting shipper scheduled quantity reports is also used for submitting Meter Bounce Report and Operator Scheduled Quantity Report.  I agree with Maggie, Terry and everyone else who has pointed out this fact and also that the new scheduled quantity reports are available only for shippers.

My recommendation will be that we remove the ability to submit the old Shipper Scheduled Quantity report and leave in place the ability to submit either the Operator Scheduled Quantity or Meter Bounce report.  Below is a snap shot of options currently on the TMS launcher

 << OLE Object: Picture (Device Independent Bitmap) >>

I would also suggest that we change options on the TMS launcher.  Where it currently says 'Scheduled Quantities Report' change it to say something like 'Operator Scheduled Quantity/Meter Bounce'.

thanks

 -----Original Message-----
From: 	Blair, Lynn
Sent:	Monday, October 08, 2001 6:59 AM
To:	Matheson, Maggie; Kedwaii, Hasan; Medeles, Gerry; Betancourt, Ramona ; Kowalke, Terry; Buchanan, John; Nacey, Sheila
Cc:	Holmes, Bradley; Garcia, Ava; Blair, Lynn
Subject:	RE: Scheduled quantity reports

	Maggie, Terry and Hasan, I would like to meet with you and Sheila to review both reports
	before we turn anything off. How about 1:00 Tuesday, October 9th in my office or Sheila's
	office?  Thanks. Lynn

 -----Original Message-----
From: 	Matheson, Maggie
Sent:	Saturday, October 06, 2001 10:51 AM
To:	Kedwaii, Hasan; Medeles, Gerry; Betancourt, Ramona ; Kowalke, Terry; Buchanan, John; Blair, Lynn; Nacey, Sheila
Cc:	Holmes, Bradley
Subject:	RE: Scheduled quantity reports

Hasan,

The new Service Requestor Report does not have operator information and the Scheduled Quantity Report does have the operator option.  We need to discuss this further before making a decision to turn the old reports off.

Maggie

 -----Original Message-----
From: 	Kedwaii, Hasan
Sent:	Friday, October 05, 2001 5:37 PM
To:	Medeles, Gerry; Betancourt, Ramona ; Matheson, Maggie; Kowalke, Terry; Buchanan, John; Blair, Lynn; Nacey, Sheila
Cc:	Holmes, Bradley
Subject:	Scheduled quantity reports

All,
some time back we implemented shipper and operator scheduled quantity reports in TMS that were designed to replace the ones that existed at the time.  Since the format of the new reports was slightly different from the old ones, the idea was to wane users off the old ones.  Unfortunately, that has not happened and we are in a situation where we are having to maintain two set of reports that are used for same information.

At this time we would like to take the opportunity to turn off the old reports as part of changes implemented on 10/13.

Thanks


Itinerary for Sally Beck
University of Oklahoma
March 19, 2000

Wednesday, April 19 Continental Flt. 392 (Seat 2B)
    2:32 pm Depart Houston-IAH
    3:55 pm Arrive Oklahoma City

Dinner:   5:00 pm Legends Restaurant
w/ Ted Jacobs, Tim Rasnic, George Hope, & students from JC Penney Leadership
& Energy Mgmt program

OU Program: 8:00 ) 10:00 pm Oklahoma Memorial Union in the
Scholars/Associates room (3rd Floor)
 Introduce Program ) Jody Crook
 Speaker - Steve Venturatos

Hotel:   The Montford Inn
    322 West Tonhawa
Norman, OK 73069
Phone:  800/321-8969
Phone:  405/321-2200
    Fax:  405/321-8347

Thurssday, April 20 Continental Flt. 3876 (Seat 6B)
    8:40 am Depart Oklahoma City
  10:05 am Arrive Houston-IAH


Dave,

Attached please find a copy of the above-referenced Agreement which
incorporates the changes we discussed.  Please call me at 3-9720 with any
additional comments or questions.

Jason


Bonnie....How was the weekend??????  Very curious to see what you crazy girls did up there in Whistler.

So, I wanted to let you know that Puget called me last Friday with another job opening.  I'm supposed to talk to the guy today regarding the position.  I certainly don't want to get my hopes up...but I'm kind of excited about this being something I could actually like.

Hope all is well with you and I'll let you know how my phone call goes today.

Talk to you soon,
Susan

Btw...messengered with Matt yesterday, I guess things are back to "normal" - whatever that is.

 -----Original Message-----
From: 	"Bonnie Lathram" <blathram@LMNArchitects.com>@ENRON
Sent:	Wednesday, February 13, 2002 4:45 PM
To:	Scott, Susan M.
Subject:	seattle

hi there:
how are you doing? have you told the company anything yet? i am thinking you probably had to turn ole pattie down... was she devestated that you won't be her new BFF?

let me know how it went, and i hope things are going well on the whole "looking for a job" front. I know it can be so frustrating.

have you spoken with matt????  any more updates with that?

happy valentines (even though it is a dumb holiday)

Take care
bonnie


000
WTNT31 KNHC 242028
TCPAT1
BULLETIN
SUBTROPICAL STORM TWO ADVISORY NUMBER	1
NATIONAL WEATHER SERVICE MIAMI FL
4 PM EST SAT NOV 24 2001
CORRECTION...TO EASTERN STANDARD TIME...

...SUBTROPICAL STORM FORMS IN CENTRAL NORTH ATLANTIC...

ADVISORIES ARE BEING ISSUED FOR THE PURPOSE OF WARNING SHIPS AT
SEA OF THE THREAT OF STRONG WINDS NEAR THE CENTER OF THIS LARGE
STORM

AT 4 PM EST...2100Z...THE CENTER OF SUBTROPICAL STORM TWO WAS
LOCATED NEAR LATITUDE 30.5 NORTH...LONGITUDE  49.5 WEST OR ABOUT
920 MILES...1480 KM...EAST OF BERMUDA.

THE STORM IS MOVING TOWARD THE NORTH NEAR  5 MPH... 7 KM/HR...AND A
TURN TOWARD THE NORTHWEST IS EXPECTED DURING THE NEXT 24 HOURS.

MAXIMUM SUSTAINED WINDS ARE NEAR  60 MPH... 95 KM/HR...WITH HIGHER
GUSTS.	LITTLE CHANGE IN STRENGTH IS FORECAST DURING THE NEXT
24 HOURS.

WINDS OF 40 MPH EXTEND OUTWARD UP TO 490 MILES...790 KM...TO THE
NORTH OF THE CENTER.

THE ESTIMATED MINIMUM CENTRAL PRESSURE IS  990 MB...29.23 INCHES.

REPEATING THE 4 PM EST POSITION...30.5 N... 49.5 W.  MOVEMENT
TOWARD...NORTH NEAR  5 MPH.  MAXIMUM SUSTAINED
WINDS... 60 MPH.  MINIMUM CENTRAL PRESSURE... 990 MB.

THE NEXT ADVISORY WILL BE ISSUED BY THE NATIONAL HURRICANE CENTER
AT 10 PM EST.

FORECASTER LAWRENCE

Make GoPBI.com's Storm Warning Center your No. 1 resource for hurricane
and tropical storm updates: http://GoPBI.com/storm

To subscribe or unsubcribe from this list, visit our Web site:
http://GoPBI.com/storm/email

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You can contact us by mail or telephone at:
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Copyright 2001 Cox Interactive Media


Vince:  I have received this resume (unsolicited) from an outside recruiting
agency.   If you are interested in meeting with Johnathan, I would be more
than happy to set it up for you.

Molly

 -----Original Message-----
From:  Graham, Toni
Sent: Thursday, March 08, 2001 2:07 PM
To: Magee, Molly
Subject: FW: Resume for Vince Kaminski

 -----Original Message-----
From:  "m eastman" <meastman@qualitec.com>@ENRON
[mailto:IMCEANOTES-+22m+20eastman+22+20+3Cmeastman+40qualitec+2Ecom+3E+40ENRON
@ENRON.com]
Sent: Thursday, March 08, 2001 1:53 PM
To: Graham, Toni
Subject: Resume for Vince Kaminski

Johnathan is at 142,000 base + 10-15% bonus. He is a PhD., Certified in
Financial Risk Management, awaiting Charter as CFA, and the list goes
on. At KPMG his clients are Financial Institutions, e-commerce, internet,
and high tech. He has real options valuation and various other financial
and overall corporate risk valuation and analysis skills that may be of
interest to Vince and his group.

             MIKE EASTMAN, CPC - President
      QUALITEC  PROFESSIONAL  SERVICES, LP
      Accounting - Financial - Energy Risk - Tax
                      Search Consultants
       281-647-9300 ext.314   Fax 281-647-9300
              email  meastman@qualitec.com
                  website www.qualitec.com
 - Johnathan Mun.doc


ERMIS, FRANK J,
?
You have been selected to participate in the Mid Year 2001 Performance
Management process.  Your feedback plays an important role in the process,
and your participation is critical to the success of Enron's Performance
Management goals.
?
To complete a request for feedback, access PEP at http://pep.enron.com and
select Complete Feedback from the Main Menu.  You may begin providing
feedback immediately and are requested to have all feedback forms completed
by Friday, May 25, 2001.
?
If you have any questions regarding PEP or your responsibility in the
process, please contact the PEP Help Desk at:
Houston:  1.713.853.4777, Option 4 or email: perfmgmt@enron.com
London:  44.207.783.4040, Option 4 or email: pep.enquiries@enron.com
?
Thank you for your participation in this important process.
?
The following is a CUMULATIVE list of employee feedback requests with a
status of "OPEN."  Once you have submitted or declined an employee's request
for feedback, their name will no longer appear on this list.  NOTE: YOU WILL
RECEIVE THIS MESSAGE EACH TIME YOU ARE SELECTED AS A REVIEWER.
?
Employee Name:
CHRISTIANSEN, SUZANNE
FRANK, CAROLE


Our upstream is Dynegy deal # 570332.1 Mid C HLH

Our Downstream is WWP deal # 339963.1

The path:

West Kootenai (G)-BCH(T)JUANITA/BCUS O#M335781A-WKPL-DYPMI-SNPD(T)BPA(T)BCUS/AVA O#96062 HNF-DYPMI-EPMI-WWP

MONTH LONG TAG 26019

HE 0700-0800 we are warned by SNPD that the transmission MAY BE curtailed to Zero.

When I spoke with Susan at WWP she finds this very suspicious, as it was described to her as a "West of Hatwai" problem she is suspicious of this and is investigating.

Please get with DYPMI and get their re-supplied transmission before this schedule flows in the morning.

Cara


Rahil:  I have now received your L1A visa extension approval notice.  Please pick this up from my office at EB3658A.  It will be in an envelope on the corner of my desk.

Margaret


Dear Equity,

Good morning,

I hope you were out shopping this weekend; the sales even got me out.

We will have a special installment of out Retail Survey this afternoon to
see how this weekend went.  Hopefully the relative strength reported by
TeleCheck will be confirmed.

The feeling here is Holiday sales and 4Q GDP will surprise, and be strong
versus expectations.  We raised our estimate for 4Q GDP from -2% to -1%.
The next two week's data should determine whether or not we are correct.

The weekly report builds on the "over but not finished" theme we debuted
last week.  The evidence we've had over the last 7 weeks suggests the
recession is ending.  We expect this quarter and next to surprise versus
the consensus, but then in 2H02, the relative strength should peter-out.
The first 7 pages cover this theme and page 6 has the table we love to put
out comparing 4Q retail sales and the Wilshire.

Ed and Nancy spent more time on the previous "hiccups" in bond yields and
what their causes were.  The only thing they could come up with were
rallies in the stock market.  Our estimate for the 10 yr has also been
changed - we now have yields rising to 5.5% in 2Q and falling to 5.3% in 3Q.

If there is any political risk to the market, it is that it gets jitters
about the stimulus package.  Tom Gallagher reports both parties are acting
surprisingly partisan, but he still bets there is a 2/3 chance the bill
gets done.  Andy Laperriere reports on the Hill - the terrorism insurance
bill should get done in the House this week, benefiting AIG, ALL, CB, and
BRK.  Andy also has a useful table of which AIRLINE is getting how much of
the first half of the bailout.

Finally, Jim is looking at this market in an "absolute vs. relative" manor.
 Yes, valuations are high.  But there is a lot of liquidity out there (also
highlighted in the EMM) and there is evidence of it "trickling down" into
the high yield and junk markets.  This liquidity makes Jim comfortable with
the idea of the market being able to go a little bit higher in the short
term.

Have a great day.

	TABLE OF CONTENTS

p.3....MORE END OF RECESSION EVIDENCE

p.7....Next Two Weeks Likely To
	Determine 4Q Real GDP

p.8....LIQUIDITY DRIVEN STOCK MARKET

p.9....SYNCHRONIZED GLOBAL RECOVERY

p.10...DEFLATIONARY BOOM?

Please click below for the entire ECONOMY, MONEY & MARKETS report.

http://www.isigrp.com/isip/lib21/1723/31632/11-26emm.html

If you have problems working with PDF files integrated in your browser,
then click below to access the link in a way that will let you save the
file to disk before viewing or printing it.

http://www.isigrp.com/isip/down/1723/31632/11-26emm.pdf

	All the best,

	Freddy Victoria
	212/446-9413


The attached file contains the business unit's cash flow through September 10, 2001.


---------------------- Forwarded by John J Lavorato/Corp/Enron on 07/14/2000
04:17 PM ---------------------------
From: Mark E Haedicke@ECT on 07/14/2000 04:17 PM
To: Peter Keohane/CAL/ECT@ECT, Julia Murray/HOU/ECT@ECT, Jeffrey T
Hodge/HOU/ECT@ECT, John J Lavorato/Corp/Enron@Enron, Rick Buy/HOU/ECT@ECT
cc:

Subject: Legal Risks Re PPAs

In preparation for our meeting on Monday, I listed the key legal issues re
the PPAs.

Mark