Enron Would Accept Less Money in a Calif. Settlement (Update1)
Bloomberg, 06/06/01

Business World: California's Ship of Fools
The Wall Street Journal, 06/06/01

Commentary 'Hi, My Name Isn't Justice, Honey,' and Shame on Lockyer
Los Angeles Times, 06/06/01

California Squeaks By
The Wall Street Journal, 06/06/01

Top Bush Adviser Moves to Sell Stocks
The Washington Post, 06/06/01

What Really Counts? EPS.
Merrill Lynch Report, 06/06/01

India: MSEB unruffled amid power talk
Business Line (The Hindu), 06/06/01

OMAN LNG STRIKES DEALS WITH INT'L ENERGY COS ON SPOT SALES
Asia Pulse, 06/06/01

AES looks to recover Rs 209 cr Gridco dues
Business Standard, 06/06/01

MSEB refuses DPC power at 90% PLF
Business Standard, 06/06/01

MEXICO: Enron Corp. to sell energy in Mexico in 2002.
Reuters English News Service, 06/05/01

US Democrats Seek Hearing On Cheney Energy Task Force
Dow Jones Energy Service, 06/05/01

Enron Would Accept Less Money in a Calif. Settlement (Update1)
2001-06-06 01:57 (New York)

Enron Would Accept Less Money in a Calif. Settlement (Update1)

     (Adds spokesman's comment in fourth to sixth paragraphs.)

     Houston, June 6 (Bloomberg) -- Enron Corp. Chairman Kenneth
Lay said the world's largest energy trader would accept less than
100 percent of the money it's owed for power sold to California if
it could reach a settlement with the state.
     Lay, who spoke on PBS's ``Frontline'' television program,
which aired nationwide this evening, refused to say how much of a
``haircut'' the company would accept.
     ``I'm not going to negotiate with the governor through you,''
Lay said on the program. Enron is currently owed $400 million to
$500 million by California power purchasers, he said.
     Most of that money is owed by PG&E Corp.'s Pacific Gas &
Electric utility, which declared bankruptcy April 6, so it
wouldn't be covered in a settlement with the state, spokesman Mark
Palmer said after the broadcast, adding that there are currently
no settlement talks going on between Enron and the state.
     Palmer said a settlement to the California power crisis would
have to include issues beyond prices, such as long-term power
contracts and retail electricity choice.
     ``There would have to be a settlement of all the issues in
the market before anyone would agree to take a `haircut,''' he
said. ``For anyone to even talk settlement, we have to talk about
structural issues.''
     The ``Frontline'' broadcast also said Duke Energy Corp. has
been in secret settlement negotiations with the state for six or
seven weeks, which would require that all pending litigation
against the company be dropped. The program, a joint production of
PBS and the New York Times, said that Duke pledged political and
public support for California Governor Gray Davis as part of the
settlement.
     ``I will not do anything that is unseemly or anything that
will bleed California dry,'' Davis said, adding that he won't give
up legal avenues. He said he gave Duke ``high marks,'' though, for
proposing a settlement in the first place.
     Davis has accused California's major generators and Enron - a
state power marketer, but not a generator - of price gouging
California consumers. Duke, which produces about 5 percent of the
power used in California, recently admitted it charged $3,800 a
megawatt-hour for power sold to the state in January and February.
That's 15 times above average levels in January.
     Shares of Houston-based Enron fell 79 cents to $53.75. Shares
of Charlotte-based Duke, the top U.S. utility owner, fell $1.70 to
$42.50.

Business World: California's Ship of Fools
By Holman W. Jenkins Jr.

06/06/2001
The Wall Street Journal
A27
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Lamenting the politician's lot in "Profiles in Courage," John F. Kennedy
wrote that "In no other occupation is it expected that a man will sacrifice
honors, prestige and his chosen career on a single issue." Of course, no
politician would last long if he didn't blow with the wind nine times out of
10. But on the tenth occasion even California has the right to expect some
courage.
We don't know what happens when an advanced economy like California's suffers
day after day of blackouts. We may be about to find out. Modern office
architecture becomes uninhabitable without air-conditioning and elevators.
Old people and asthmatics may die in the heat. So may drivers at unlit
traffic crossings.
Steps could still be taken to lessen the blackouts, but voters wouldn't know
the difference, and it's so much easier to cast blame. Gov. Gray Davis prates
about a "war with Texas." And who knows what secret failures as a human being
led Bill Lockyer, the attorney general, to threaten Enron's Ken Lay with
homosexual rape in the California prison system.
California has found itself singularly lacking in heroes in its hour of
crisis. Mr. Lockyer and Mr. Davis harp on price, but the true problem is the
unavailability of power at any price to meet the demand that exists under the
current structure of retail rates.
Both must know the solution they noisily advocate, federal price controls
slapped across Western electricity markets, wouldn't bring power into
existence to close the gap. Their proposal would simply saddle the feds with
the dirty job of apportioning blackouts from California's mistakes across
half a dozen other states.
In California itself, municipal utilities in Santa Clara, Palo Alto and other
towns have already announced they won't participate in rolling blackouts. The
Los Angeles Department of Water and Power certainly isn't volunteering. Why
should voters in other states? Why not just cut the lines and let California
monopolize the darkness? A state review board in Washington has already
vetoed a proposed plant rather than suffer local pollution for power destined
for California.
Mr. Davis knows this; he knows price controls would create a new problem
without solving the shortages. Meanwhile, the specter nobody wants to talk
about is the state of California itself headed for bankruptcy if it continues
to be willing to pay any price to satisfy the demand of consumers shielded
from the true cost of power.
Mr. Davis's version of the Big Lie is that Texas is to blame. Texas companies
account for just 12% of California's supply, having bought 7,000 of the
20,000 megawatts that local utilities were forced to sell under
"deregulation." Being in the right place at the right time has always been
profitable, but any windfall has been spread widely among suppliers of gas,
pipeline capacity, storage and ancillary services. Take Enron: Its revenues
quadrupled in the past year, but so did its costs, and profits are up only
31%.
A leaked California memo names as two of the biggest "gougers" BC Hydro,
owned by Canadian taxpayers, and the U.S. Bonneville Power Administration.
Their sin was letting their reservoirs fill up overnight while meeting local
needs with spot-market power, so they could sell their own production for
higher prices to California during the day.
These are precisely efforts that might stop if price controls were imposed
across the West, making the shortages worse, probably much worse.
Northwestern smelters might be better off reclaiming the cheap hydro they've
been passing on to California -- 3,000 megawatts, enough for two million
homes. Farmers could resume irrigating. Seattle, Tacoma, Boise and other
neighbors have all done what California has failed yet to do, hiking rates to
curb demand.
Rather than emulate them, Gov. Davis's peacock of an energy czar, David
Freeman, babbles about "public power," the answer to a question nobody asked,
the solution to a nonexistent problem.
Prices of electricity and natural gas for future delivery are already falling
as investors race to build new plants and pipelines to meet the state's
future needs. Markets foresee the crisis ending without Mr. Freeman's antique
New Deal schemes. What's been missing while folks like him ride their hobby
horses, though, is the courage to take steps necessary to minimize the
suffering this summer.
One large source of untapped power is California's own small generators,
known as qualifying facilities. Their fee scale is set by the state, but
California couldn't even summon the political competence to keep them in
business, so 3,000 megawatts sit idle.
People have tried to attach all kinds of ideological baggage to the
California mess, but we wouldn't be here if water flows in the Columbia River
system weren't down 54% from normal. Last summer, California's fossil-fuel
generators increased their output by a whopping 62% to make up the shortfall,
mostly by running existing plants harder.
Yes, there have been flaky prices, partly because, mysteriously, California
continues to use a discredited computer program to book a large chunk of its
power one hour in advance. But the flaky prices also represent a system
pulling out all stops to save California from itself.
We said back in December there's only one solution: Jack up rates to stop
consumers trying to burn more power than the state can beg, borrow or steal.
The only question was when Gov. Davis would find the courage. Hard to
believe, but the price hikes his regulators approved in March are still on
the drawing board and busily being watered down.
Someone should point out to Gov. Davis that the author of "Profiles in
Courage" wasn't endorsing career suicide but suggesting that politicians must
husband their leadership for times when it really counts. Not a few people in
public life understand this. Al Gore openly yearned for the day when he could
justify the compromises and trimming he's done in his life. But Mr. Davis is
perhaps too lost in the dark to understand he is blowing the whole reason to
have a political career.
What borders on the stupefying, though, is the failure of any other
Californian of prominence to step forward and speak truth about the power
crisis. By all rights Gov. Davis should be a political leper, yet he actually
stands a microscopic chance of being re-elected because of the sheer poverty,
in a state of 34 million people, of the Republican opposition. Arnold
Schwarzenegger is looking better all the time.

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

California; Opinion Desk
Commentary 'Hi, My Name Isn't Justice, Honey,' and Shame on Lockyer
TOM G. PALMER
Tom G. Palmer is a senior fellow at the Cato Institute in Washington. E-mail:
palmert@cato.org

06/06/2001
Los Angeles Times
Home Edition
B-11
Copyright 2001 / The Times Mirror Company

Here's what California Atty. Gen. Bill Lockyer said at a press conference
about Enron Corp. Chairman Kenneth Lay: "I would 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."'
Here's why Lockyer should be removed from his office of public trust: First,
because as the chief law enforcement officer of the largest state in the
nation, he not only has admitted that rape is a regular feature of the
state's prison system, but also that he considers rape a part of the
punishment he can inflict on others.
Second, because he has publicly stated that he would like to personally
arrange the rape of a Texas businessman who has not even been charged with
any illegal behavior.
Lockyer's remarks reveal him to be an authoritarian thug, someone wholly
unsuited to holding an office of public trust.
But his remarks do have one positive merit: They tell us what criminal
penalties really entail.
Contrary to some depictions of prisons as country clubs, they are violent and
terrible places. More and more politicians propose criminal sanctions for
more and more alleged misdeeds, and as a result ever more kinds of behavior
are sanctioned by criminal penalties, perhaps now even selling electricity.
Those found guilty of such crimes are put into cages, where they are deprived
of their liberty and dignity and, as Lockyer so clearly acknowledged, raped
and brutalized. What's worse, Lockyer has indicated that he believes that
rape is an appropriate part of the system of punishments he administers.
Should it matter that Lay is a businessman? Imagine the outcry if the head of
Enron were female. What would Lockyer's fellow Democrats have said to that?
Should it matter that Lay is chairman of an electricity generator? Does the
nature of his business justify threats to escort him to his own rape? Lockyer
told the Los Angeles Times that he had singled out Enron's chairman because
the Houston-based company is the world's largest energy trader.
So apparently singling out a man for a heinous threat is OK because he's the
chairman of the world's largest energy trading company. That's according to
the man who, as a state senator, sponsored California's 1984 hate-crimes law.
Evidently the crusader against intimidation on the basis of race, religion
and sexual orientation feels no hesitation at all about intimidating someone
and threatening him with the brutal use of physical force simply because he
heads the world's largest energy trading company.
Lockyer and Gov. Gray Davis seem to think that the best way to keep the
lights on is to threaten electricity producers with brute force, rather than
to offer to pay competitive rates in competitive markets. Are energy
producers to blame for California's energy problems? No. Bad policies,
including rigid controls on retail prices of electricity, are the cause of
the problem, not the people who generate energy. Scapegoating producers and
threatening them with violence is an old ploy of authoritarians. Californians
should not stand for it.
An Enron spokesman said that Lockyer's chilling stated desire to arrange the
rape of Lay does not merit a response. The spokesman is wrong. Lockyer's
remarks merit public disgrace and removal from office. After all, rape is not
a form of legal justice in America--is it?

GRAPHIC-DRAWING: "Is being raped part of my sentence?", Paul Conrad;

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

REVIEW & OUTLOOK (Editorial)
California Squeaks By

06/06/2001
The Wall Street Journal
A26
(Copyright (c) 2001, Dow Jones & Company, Inc.)

The California energy crisis is now more than a year old and Governor Gray
Davis has done nothing but squeak at it. At first, he attacked out-of-state
power generators for being pirates and marauders. But lately he has focused
on FERC and President Bush, demanding that the federal government place price
caps on the sale of wholesale power. He's even rustled up 10 economists --
including the dad of deregulation, Alfred Kahn -- to support him.
Well, as most everybody knows -- including the economists who have come out
in favor of them -- price caps don't work. If caps are set too low, (as
politics often dictate), existing supply will shrink and demand will grow,
making the situation worse. Even "correctly" set price caps will discourage
additional supply and do nothing to moderate demand. The usual result is an
aggravation of shortages and rationing. Indeed, the history of price caps,
particularly during the energy crisis in the early 1970s -- when oil prices
were capped and lines at gasoline stations were long -- bears this out.
The pro-price-caps argument however is a clever one. It rests on the notion
that there is no "effective competition" in the California energy market.
According to one of the 10 pro-price-cap economists, Paul Joskow at MIT, the
energy market in California is characterized by inelastic demand and very,
very tight supplies, which conspire to produce, at certain times, prices
above those that would have obtained under competitive conditions.
Mr. Joskow examined the California energy market during the summer of 2000,
looking at market fundamentals (the broad forces determining supply and
demand); he found that 25% to 30% of the wholesale prices of electricity
during June, July and August cannot be explained by market fundamentals and
should be attributed to market imperfections.
As an argument for price caps, this is hardly overwhelming. Especially since
there are several perfectly respectable and compelling reasons to look no
further than market fundamentals. Such as the fact that the price of the most
important input for almost half the electricity generated in California,
natural gas, has been rising over the past year. Such as the fact that
natural gas pipelines are filled to capacity, thus bidding up the price to
transmit. Such as the fact that the worst drought in the Northwest in 60
years has reduced the amount of hydroelectric power in the market, putting
even more demands on natural gas generation. Such as the fact that imports
into the state, which were running 20% and up to 25% during peak usage, have
declined. And the fact that the price of tradable permits for NOx emissions
-- which must be held by plants generating electricity -- has skyrocketed.
Not least the fact that demand in California during the past several years,
unfettered by rate increases, has zoomed dramatically.
At any rate, electric power is increasingly expensive all over the country;
indeed, California's neighbors, the states of Washington, Idaho, Wyoming,
Arizona, Nevada, Oregon, Utah and Montana, have had to bump up utility rates
30% to 50%. So where is the tablet of stone saying that California, with its
especially restrictive environmental regulations, should be any different?
The bad news for California is that, poor dears, it can't be different.
Market fundamentals, like supply and demand, rule. But that's also the good
news. High wholesale prices (and necessary profits) have done their job; they
have brought forth a number of suppliers, in the form of more than a dozen
plans for significant new generating plants; in fact, plans have even been
announced to build more natural gas transmission pipelines. Too, demand has
started to abate; peak demand on a monthly basis has fallen 4% to 9% from
last year, doubtless a response to a "temporary" 10% rate hike in January and
the California Public Utilities Commission's decision in March to finally
really, really raise rates by as much as 50% on average. (The details of that
plan were announced in May and rate increases will show up on this month's
bills.)
So California's blame-shifting pols can point fingers til the state freezes
over. The market is working, and imposing price caps would not only interrupt
that process, but would be unnecessary. Of course, there is a painful lag
between the market signals of high prices due to shortages and the market
remedies of increased supply and lower demand. And California will probably
feel lots of that pain this summer in the form of continued high prices and
blackouts.
But, in the long run, the market will be successful in creating new supply
and lower prices. Unfortunately California's energy glut will probably come
too late to avoid a siege of political spinning and demagoguery. Ultimately
we have to hope Californians will understand it is their politics that has
served them poorly.

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

A Section
Top Bush Adviser Moves to Sell Stocks
Mike Allen
Washington Post Staff Writer

06/06/2001
The Washington Post
FINAL
A10
Copyright 2001, The Washington Post Co. All Rights Reserved

Karl Rove, President Bush's senior adviser, acted yesterday to sell his
stocks in energy, defense and pharmaceutical companies with stakes in
administration policies.
An administration official said Rove has long planned to sell his stocks, and
made a final decision at an April 24 meeting with White House lawyers, but
has been unable to complete the process because of the complex paperwork and
legal issues.
A financial disclosure form released by the White House on Friday showed Rove
owned holdings worth more than $100,000 each in Boeing Co., one of the
nation's three largest defense contractors; Enron Corp., a Houston energy
conglomerate; General Electric Co., a supplier for nuclear and fossil fuel
power generators; and Pfizer Inc., a pharmaceutical manufacturer. A notation
dated May 18 said, "All individual stock holdings to be sold."
Rove yesterday sought a certificate of divestiture from the Office of
Government Ethics, which allows deferral of capital gains taxes on sales that
are made to avoid conflicts. The holdings would be rolled into government
securities or diversified accounts.
Bloomberg News reported Monday that Rove had not yet sought the certificate.
An administration official said yesterday that Rove had submitted a draft
request.
Democratic Senate aides said they would determine if a hearing might be
warranted, since Rove had retained his holdings throughout the
administration's deliberation on its energy policy, which Bush announced May
17.
The administration official said Rove has "intended to sell all of his stock
from the very beginning, and was told not to proceed" by the White House
counsel's office until his situation was thoroughly examined. At the April 24
meeting, lawyers outlined several options and Rove chose divestiture.
"Mr. Rove has followed the instructions of the White House counsel's office
and has avoided discussions that could specifically or materially affect his
holdings while consultations regarding his financial situation were ongoing,"
the official said.

http://www.washingtonpost.com

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

What Really Counts? EPS.
2001-06-06 07:49 (New York)

                      M E R R I L L  L Y N C H        Research Comment
  Natural Gas - Diversified                           Reference Number
30215707
  United States                                       Jun/06/2001 07:49
  Donato J. Eassey                                    (1) 713 759-2591

Reason for Report:  Take Advantage of CA-Related Market Weakness in Energy
Merchant Conglomerates

Who Let The Bears Out? CA
Every once in a while issues and allegations become larger than life. That
seems to be the case in California.

While many issues beyond CA are negatively impacting the Energy Merchant
Conglomerates (EMCs), in our opinion it is the CA issues themselves which
appear to be at the very root of the problems. These issues include the
uncertainty at the FERC, the threat of CA legislated Windfall Profit Taxes
(WPT), Congressional examination of price caps and, to a lesser extent, the
turnover of Senate control to the Democrats.

As for the allegations of market manipulation and abuse, ultimately such
charges may have to be settled in the courts. Unfortunately, the legal system
is rarely swift, and consequently our EMCs may remain under near term pressure
as media examinations and political rhetoric heat up with summer temperatures.

In short, public discussions have already taken a large toll, with Enron,
Dynegy, El Paso and Williams down a combined $36 billion in market cap value
or
21% since the beginning of the year.  Yet at worse, we assess the CA exposure
for these players to be only a bit over $1.6 billion!

Bottom line, however, is that with EPS growth rates remaining strongly intact,
it is exactly during these periods of weakness that we would be aggressively
building positions.  We think we are there.  Case in point, Table 1 below
illustrates valuations for our EMCs relative to the S&P500 over the last 10
years; the EMCs are now trading below their 10-year average to the S&P, while
we believe their growth prospects are the strongest they have ever been during
this time.

Maintain Perspective
At the risk of flogging Economics 101 once again, high prices begin as a
function of supply relative to demand.  When there are overwhelming forces at
work for a commodity with no readily available substitution, the situation can
get out of hand as is the case in California.  While demand was rapidly
increasing the past 10 years and consumer prices were either frozen or reduced
since '97 (few discuss the fact that California consumers benefited for
several
years without a rate increase) the CA environment virtually prohibited any new
supplies from being built.  At the same time, end users (including the
utilities) were forced to buy primarily on the spot market, exacerbating
market
volatility.  While hindsight is 20/20, it should be no surprise that given
zero
price feedback from consumers and a flawed bidding process, it was only a
matter of time before this quasi-regulated market became unraveled.

Laws generally do not prohibit people from making money in the U.S. in a tight
supply/high demand marketplace, particularly in volatile markets such as
commodities on the Nymex or stocks on the NYSE. This is key because anyone
willing to except trading risks and that have the financial and risk
management
wherewithal can and do participate in these markets - freely.  It should be no
different in the secondary energy commodity OTC market.  To suggest price caps
or a WPT are the answer is to suggest that we put a cap on stock prices and
place a WPT on stock trading profits if they are higher than one's liking,
despite the risks involved!

In our view many parties have participated in creating California's energy
deficiency problems.  A dysfunctional market that is inefficient due to
ignorance of market realities is hardly against the law - as painful as it
might be to correct.  Obviously, if any direct, collusive or illicit form of
market manipulation is involved that would be a different story.

And once the facts are allowed to unfold, we are likely to see just who was
responsible for the current situation - hopefully before CA takes an even
greater toll on the nation's energy infrastructure, or worse, on the national
economy.

As the lightning rod to the California Troubles - our four EMCs as a group
have
lost a combined $36 billion in market cap value or 21% since the beginning of
the year. Yet at worse, we assess the CA exposure for these players to be only
a bit over $1.6 billion in gross receivables (and likely only half this on a
net basis)!

Despite the challenges, however, it is exactly during these periods of
weakness
that we are reiterating our ratings. Our EMCs are now trading below the S&P
500's relative P/E, off from their recent high of 199% and more notably their
104% 10-yr average.

Unfortunately, with further noise and political uncertainty likely to remain
in
vogue, more collateral damage is likely.  Bottom line, however, is that EPS
growth prospects not only remain intact, they are the strongest the EMCs have
experienced in their history; ultimately, we believe this will be the last
dynamic left standing.  Those seasoned energy investors that recognize reality
over rhetoric should, in our view, realize gains for stepping up at today's
levels.

India: MSEB unruffled amid power talk

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

MUMBAI, June 5. EVEN as officials from various financial institutions and
banks split hairs in Singapore on whether to sink or sail with the Dabhol
power project, the Maharashtra State Electricity Board (MSEB) is cool about
the entire affair.
Unlike previous instances when the odds were stacked against it, this time
MSEB knows pretty well that whatever happens, it will remain unscathed. If
someone has to take a hit, it has to be the financiers and maybe the
Governments.
At the hearing before the Maharashtra Electricity Regulatory Authority
(MERC), the Advocate-General, Mr Goolam Vahanvati, had said on behalf of the
board that MSEB was being kind towards Enron when it rescinded the contract
for "material misrepresentation". One more step, and it's fraud, he had told
MERC.
Knowing this fully well, MSEB has kept its cool throughout the altercation.
It firmly believes that if nothing else, it can pin down the company on just
this one point at any forum. Enron too has not said at any point of time that
it can actually perform as per the "cold-start graph" in the power purchase
agreement. In fact, it has said such performance - making available full
power in 180 minutes - is "not possible" by any such plant in the world.
In a way, it was MSEB's defiant posturing coupled with the Maharashtra
Government's passing the buck up that got the Central Government to act.
One thing evident throughout the crisis is that all the players are trying to
save their own skin. In spite of the developments, Enron has played its cards
close to its chest, and hinted to institutions at taking a hit on its returns
only a few days ago. Even that, Mr Wade Cline, Managing Director, Enron India
Pvt Ltd, is reported to have told Indian lenders, would hinge on substantial
give and take.
Indian lenders have a genuine case in that they are the ones without any
assurances apart from the plant itself.They cannot do much except try get the
players to somehow shake hands.
They had tried to convince the Government some time ago to get MSEB to
activate the escrow and increase the letter of credit amount. But they were
told off by MSEB which was in no mood to relent. Tomorrow, Enron will make
presentations at Singapore on what it feels can be done to move ahead.
Whatever the outcome of the meeting, MSEB is unlikely to let anything queer
its pitch.
- Dinesh Narayanan

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

OMAN LNG STRIKES DEALS WITH INT'L ENERGY COS ON SPOT SALES

06/06/2001
Asia Pulse
(c) Copyright 2001 Asia Pulse PTE Ltd.

MUSCAT, June 6 Asia Pulse - Oman LNG has signed agreements with a several
major international energy companies for future short term sales of liquefied
natural gas to the United States and Europe.
The company has also clinched a deal with Enron Corporation to sell a
shipload of LNG to the US market in August this year.
This is in addition to six LNG cargoes that the US-based energy giant will be
lifting from Oman LNG's Qalhat plant between March and December this year,
using its own vessel, the Hoegh Galleon.
The deals, according to a senior marketing official of the company, mark a
significant breakthrough in Oman LNG's efforts to consolidate its presence in
the fiercely competitive transatlantic energy market. Master Agreements,
which broadly set out terms governing transactions between two entities, have
now been signed with TotalfinaEif (France), Sempra Energy (US), and Cabot LNG
(US), said Adnan J Rajab, OmanLNG's Gas Marketing Negotiator. Similar
agreements are also being finalised with CMS Energy of the US, British
Petroleum, GAz de France and Shell North America, he added.
We are very encouraged by these agreements because Western markets have
traditionally been the stronghold of more established LNG producers. By
signing Master Agreements with most of the biggest players in the US and
European energy markets, Oman LNG stands a far better chance of exporting
some of its surplus volumes in remarks to the Observer.
Until exports to India commence early next year, Oman LNG will have some
excess capacity on its hands, which it is aggressively looking to sell in
short term and spot sales. The trasatlantic market appears to be the most
prospective at present.
Meanwhile, Enron Corporation has signed a contract to lift 135,000 tonnes of
LNG to the US market in August this year.
It is the second such spot deal signed with Enron, which lifted a similar
quantity of gas from Oman LNG's Qalhat facility in August last year, Rajab
said.
Enron's Dabhol Power project in India is also committed to buying 1.6 million
tonnes per annum (mtpa) of Omani LNG over a 20-year period. The first
shipment to Dabhol is due early next year.
According to Rajab, the successful export of spot cargoes to the US through
Coral Energy and Enron led to Master Agreements being signed with a number of
International energy firms, with discussions under way with several other
majors.
Exports to the European and American markets, Rajab explained, largely hinge
on the availability of LNG carriers, which are invariably in short supply
throughout the year. Without carriers of its own, Oman LNG has to depend on
chartered vessels.
(ONA)l 06-06 1009

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

AES looks to recover Rs 209 cr Gridco dues
Santosh Tiwary NEW DELHI

06/06/2001
Business Standard
2
Copyright (c) Business Standard

After Enron-promoted Dabhol Power Company in Maharas-htra, it is now AES'
turn to explore various options for recovering the Rs 209 crore dues from the
state-run Grid Corporation of Orissa (Gridco).
AES is the 49 per cent stake holder in Orissa Power Generation Company (OPGC)
owning two units of 210 mw each in the Ib valley complex. It supplies power
through Gridco, the transmission company.
"We are currently considering various options, keeping OPGC's best interest
in mind," a company spokesman told Business Standard.
The company gave an ultimatum to Gridco last month by not reopening one unit
for a week after the scheduled outage. AES spokesman said that after verbal
assurance by the Orissa energy minister and energy secretary on taking
concrete steps to pay the outstanding dues, the unit was restarted.
With no such steps in sight, AES is forced to explore the options available
under the power purchase agreement (PPA), he added. Incidentally, the PPA
between the two parties, also provides for arbitration in India.
AES acquired 49 per cent stake in OPGC in December 1998 by paying $145
million on the basis of secured payments from Gridco and full control of the
day-to-day management.
In the absence of timely payments from Gridco to OPGC, AES decided to curtail
generation to around 68.5 per cent annual PLF against 90 per cent as demanded
by Orissa, said the spokesman. The decision was taken to prevent further
increase in the receivables and protect cash flow, he added.
He added that linking distribution company Cesco's default to Gridco with the
whole issue was not justified. "We acquired OPGC on secured payment backed
escrow arrangement for 100 per cent of OPCG's dues. Our subsequent
acquisition of Cesco in no way dilutes Gridco's payment obligations in terms
of our PPA, escrow and other contractual arrangements," he said.

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

MSEB refuses DPC power at 90% PLF
Renni Abraham MUMBAI

06/06/2001
Business Standard
1
Copyright (c) Business Standard

The Maharashtra government will not buy power from the first phase of the
Dabhol Power Company's (DPC) project at a 90 per cent plant load factor
(PLF), a senior state government official said here today. The statement
represents a hardening of Maharashtra's position on talks with DPC and
virtually kills the latter's proposal to split tariffs for the Centre and
Maharashtra.
The Maharashtra State Electri- city Board (MSEB) is now required to buy 90
per cent of the power generated by the first phase (740 mw) of the project.
But during negotiations with the Godbole Committee, it has been demanding
that the requirement be cut to 35 per cent.
At the last Godbole Committee meeting, DPC had put forward a plan to split
tariffs for the Centre and Maharashtra, with the Centre paying Rs 3.30 per
unit of power and MSEB paying Rs 3.50. The Centre, DPC suggested, could buy
two-thirds of the power it generated, once the second phase (1,444 mw, taking
the total capacity to 2,184 mw) was completed.
Maharashtra's latest position undermines DPC's proposal since the Enron
-promoted company's tariff hinges on MSEB absorbing 90 per cent of the power
it generates in the first phase.
A senior state government official said: "The Centre has been talking a lot
about playing the role of a facilitator. What we need is a buyer for the
second phase."
Despite recent central government pronouncements, state government officials
privately argue that the Centre is not playing an active role in resolving
the problems that have plagued the DPC project. At the very first Godbole
Committee meeting he attended, the Centre's nominee, AV Gokak, adopted a
non-committal stand.
The Maharashtra government official added: "Gokak said he was merely
attending the meeting in the capacity of a messenger and would communicate to
the Centre any solution worked out by the renegotiation committee. The Union
power ministry has stated that a solution worked out by the renegotiation
committee would be acceptable to it. Unless the Centre takes an active part
and assures the offtake of the second phase, no solution can be worked out."

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

MEXICO: Enron Corp. to sell energy in Mexico in 2002.

06/05/2001
Reuters English News Service
(C) Reuters Limited 2001.

MONTERREY, Mexico, June 5 (Reuters) - U.S. energy giant Enron Corp. said on
Tuesday its Mexican subsidiary would begin selling electrical power in Mexico
late next year, after construction of its Nuevo Leon plant is completed.
Enron Mexico President Jaime Alatorre said the unit began building the
co-generation plant in May to supply energy to supply Mexican glassmaker
Vitro SA , industrial conglomerate Grupo IMSA and No. 2 Mexican cement maker
Apasco .
He said the $200 million project would eventually generate 245 megawatts and
supply varying amounts of energy to each of the Mexican industrial giants.
"Vitro will consume 110 megawatts, IMSA 90 and Apasco the remaining 45
megawatts," Alatorre said at a forum for Mexican business executives in the
northern city of Monterrey.
According to Vitro, the new plant will provide energy to at least 12 of its
production units in Mexico and will save it some $10 million in annual energy
costs.
IMSA President Eugenio Clariond Reyes told Reuters the new plant will cut
annual energy costs at the industrial conglomerate by about 13 percent.
Alatorre said Enron is looking at other co-generation projects but would not
provide further details.
Mexican law reserves the sale and distribution of electricity to the state,
and only allows private investment in projects meant for co-generation, or
for co-generation of energy meant for personal consumption.
Alatorre said that would have to change if Mexico is to continue providing
for its energy needs into the near future.
"Congress must be made conscious of the fact that the issue of sector reform
can wait no longer," he said.

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

US Democrats Seek Hearing On Cheney Energy Task Force

06/05/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

WASHINGTON (AP)--Democrats on a House committee urged Rep. Dan Burton,
R-Ind., to look into U.S. Vice President Dick Cheney's energy task force,
which met privately with major Republican donors in formulating the Bush
administration's energy policy.
California Rep. Henry Waxman, the ranking Democrat on the Government Reform
Committee, asked chairman Burton to conduct a congressional hearing on what
took place at the Cheney group's secret meetings and the identities of all
participants.
"The Cheney task force has conducted its meetings in private, and reportedly
has obtained input from private citizens and groups, including political
contributors," Waxman wrote Burton.
The Associated Press reported last month that GOP contributors, including
executives from power wholesaler Enron Corp. (ENE) and the Edison Electric
Institute, the utility industry lobbying group, had met with Cheney to
discuss energy policy.
Committee spokesman Mark Corallo said the Republican staff hasn't had a
chance to discuss the letter with Burton.
Democrats criticized Burton's aggressive congressional investigations of the
Clinton administration, especially the campaign fund-raising scandal
surrounding the 1996 presidential election. Waxman and other Democrats said
Burton's fund-raising probe was conducted in a highly partisan fashion that
ignored Republican fund-raising excesses.

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


That means it is recognized, not  "contemplated to be recognized", then?  Is
there such a thing as a recognized scheduling entity, or do you just schedule
on their behalf?

From: Reagan Rorschach/ENRON@enronXgate on 05/31/2001 10:41 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: RE: Are we confusing scheduling services with QSE type stuff?

What about this?  Is this the QSE defn? [Rorschach, Reagan]  No, that would
be Qualified Scheduling Entity that has a very lengthly ERCOT definition.
This was greatly simplified to eliminate any confusion.  I think it is OK as
is.

&Scheduling Entity8 means an entity contemplated to be recognized by SPP, and
fully qualified under SPP rules and regulations, to schedule the transmission
of Energy, Capacity and Ancillary Services from the Facilities.

From: Reagan Rorschach/ENRON@enronXgate on 05/31/2001 07:51 AM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: RE: Are we confusing scheduling services with QSE type stuff?

Kay, lets couch it as below...or similar....what I did below is botchy.

Reagan C. Rorschach
Enron North America
1400 Smith Street
Houston, Texas 77002
713.345.3363

 -----Original Message-----
From:  Mann, Kay
Sent: Wednesday, May 30, 2001 10:52 AM
To: Rorschach, Reagan
Subject: Are we confusing scheduling services with QSE type stuff?

(20) If and when a new RTO begins operation, seek to  [Rorschach, Reagan]
comply with scheduling requirements and to satisfy [Rorschach, Reagan]  such
rules and protocols [Rorschach, Reagan] that are created in [Rorschach,
Reagan]  association therewith.


As a point in clarification, in Section 2(a) of the Master Netting Agreement the parenthetical "(including automatic termination, if applicable)" should be deleted.  Here are the new forms with the deletion made in them.  Since the form is amending the underlyings to not include automatic termination, the parenthetical should no longer be included.

Further, see the attached once again revised process (hopefully this will be the last revision for a time!).  Changes are in bold and deal with the gas receivables financing and credit sign-off.  To the extent a counterparty will agree to a 25th of the month effective date, do so, as it fits our physical gas billing cycle and makes it easier to pull out the receivable from the gas receivable financing.

Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas 77002-7361
(713) 345-7732
(713) 646-3393 (fax)
mary.cook@enron.com


Is this something I should have Heather Brown participate in?

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 10/12/2000 05:22
PM ---------------------------

Dorothy Youngblood@ECT
10/12/2000 05:21 PM
To: Molly Harris/HOU/ECT@ECT, Gregg.Penman@enron.com, Jeffrey T
Hodge/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron
cc: Suzanne Adams/HOU/ECT@ECT, Kaye Ellis/HOU/ECT@ECT,
Lynn.pikofsky@enron.com

Subject: Conference Call - eNovate Legal Templates Masters, LC and Guarantees

This memo will confirm the above referenced Conference Call has been arranged
for the date/time listed below:

 DATE:   Monday, 10/16/2000

 TIME:   2:00  P.M.- 3:00 P.M.

 DIAL-IN NUMBER: 1-888-422-7109

 HOST CODE:  409-555

 PARTICIPANTS
  CODE:  381-755

Please let us know if there are any questions.

Thanks you.

Dorothy

713-853-6114

Participants:

  Molly Harris - Host of Conference Call
  Gregg Penman
  Jeff Hodge
  Sara Shackelton
  Kay Mann


I will be home after 8:00.

>>> Patrice.L.Mims@enron.com 01/30 2:04 PM >>>
Got it, let's talk tonight.  What time is good to call you? or you give me
a call!

    -----Original Message-----
   From:   "Valada Brawner" <VBrawne@NICOR.COM>@ENRON
   Sent:   Wednesday, January 30, 2002 1:46 PM
   To:     Mims, Patrice L.
   Subject:  Re: RE: Good Morning  :)

   I appreciate all that you have done.  There are 7 days remaining.  I
   wish I
   was leaving tomorrow.  I miss him dearly.  Three to four years is going
   to be
   a challenge.  In that time frame I must finish school and both of my
   daughters
   would have graduated from high school and 8th grade.  The apartment was
   bothering me on yesterday.  It was laid on my heart to call her and let
   her
   know everything up front.  She had to run a credit report, you know that
   is
   not good due to the circumstances.  I let her also know why I can not
   move
   until March 1.  Emotionally I wish I could move Feb.1.  Financially I
   would be
   set to move and start my new life of March 1.  I prayed about on last
   night
   and turned it over to JESUS and I am not to worry about it.  I see the
   lady on
   today.  My whole life will be on the move in the month of Feb.  If all
   goes
   well I should receive the package no later than Tuesday.  Keep your head
   up
   about the class.  If you need to pull Hunter to the side and work with
   him
   personally do that.  May be L can help?  Beside missing RC I am okay.

   >>> Patrice.L.Mims@enron.com 01/30 1:01 PM >>>
   Hey "G",  what's up?  I know you will be shocked, but I brought the
   purse
   and necklace into the office and will be sending them out this
   afternoon....so there!  How's it going this morning?

   I have been sitting in a class all morning that Hunter is teaching.
   It's
   on options and volatility.  Boy, that stuff does not sink in well with
   me,
   I find the class a real challenge.  I'm so uncomfortable in the class.
   Pray for me, because I need to get this stuff and be able to chart this
   stuff.  Everyone is real helpful though, but being put on the spot, its
   hard to come up with the answers quickly.  It's painful for me....whew!

   Talk with you later.......how many days left now?

   Love ya

       -----Original Message-----
      From:   "Valada Brawner" <VBrawne@nicor.com>@ENRON
      Sent:   Monday, January 28, 2002 10:46 AM
      To:     Mims, Patrice L.
      Subject:  Good Morning  :)

      When this email reaches you I pray that you are fine and well.  How
   was
      your weekend?  When are you suppose to see the lawyer?  I spoke with
      mine over the phone on Sat. and will be seeing the other one on this
      week.  Frank and I have to write out the agreement between the two of
      us.  The lady call me about the apartment, the prospect that was
   there
      before I was did not get it.  She offered the apartment to me.  I
   went
      in there praying and I guess the Lord saw fit.  I am soo
   afraid/scared.
      I woke up this morning and told Frank that he hurt me and that if I
   seem
      evil I do not mean to be it is because I am hurt and angry.  I caught
      him crying in the basement.  Patrice, I wish my dad was alive to
   receive
      a huge hug.  I love you.  Thanks for being there.

      VAL

   **********************************************************************
   This e-mail is the property of Enron Corp. and/or its relevant affiliate
   and
   may contain confidential and privileged material for the sole use of the
   intended recipient (s). Any review, use, distribution or disclosure by
   others
   is strictly prohibited. If you are not the intended recipient (or
   authorized
   to receive for the recipient), please contact the sender or reply to
   Enron
   Corp. at enron.messaging.administration@enron.com and delete all copies
   of the
   message. This e-mail (and any attachments hereto) are not intended to be
   an
   offer (or an acceptance) and do not create or evidence a binding and
   enforceable contract between Enron Corp. (or any of its affiliates) and
   the
   intended recipient or any other party, and may not be relied on by
   anyone as
   the basis of a contract by estoppel or otherwise. Thank you.
   **********************************************************************


thanks

Chad Landry
01/31/2001 01:17 PM
To: Eric Bass/HOU/ECT@ECT
cc:
Subject: I was planning on

sending Matt a check for old bills.  I will just include an extra check in
the envelope for you and have him deliver it to you.

CKL


- MeadMktplace (2).xls


Tana:

Regarding our conversation, here are the new books we have created. They are
not yet being traded but will be shortly (from what I understand).
Theresa Brogan will be heading up this operation.
Now that I think about it, I don't think porkbellies been traded on the
NYMEX. Let me know if you need any more information.

Tobin


FYI - Meeting is at 0900 (CST) in ECS06716 - Phone number: 713.584.1109

 -----Original Message-----
From: 	Jafry, Rahil
Sent:	Wednesday, January 30, 2002 3:02 PM
To:	Hillier, Bob; Denny, Jennifer; Engel, Tom; Lees, Lisa; Sever, Stephanie; Brackett, Debbie R.; Meredith, Kevin; Port, David; Shah, Kal; Gray, Mary Griff; Taylor, Mark E (Legal)
Cc:	Shults, Bob; Carter, Carl; Forster, David; Webb, Jay
Subject:	Trader & Customer simulation for www.UBSWenergy.com
Importance:	High

Everyone,

As we prepare to re-launch the website, we're planning a simulation session for our traders and originators for next week (tentatively Monday).  This session will be similar to the ones we had before the initial launch of EnronOnline.  In brief, the goals are:

Test the integrity/functionality of the system and related processes,
Get everyone re-acclimated with the system and processes (traders, originators, credit, operations, help desk, et al), and
Show how the trading system and our processes work to the UBS staff visiting next week.

In order for the simulation to be successful, we will need to ensure that the simulation environment is exactly like the "live" trading environment.  We will need to coordinate with each one of you about what needs to get done to make this possible.  I will be sending out an invite for a meeting tomorrow morning.  Please make sure you attend to discuss what needs to get done on your end (setting up trader/counterparty profiles, credit headroom, etc.), as this simulation has been requested for early next week.  If you have prior commitments, please appoint someone from your group to fill in for you.

Feel free to call me with any questions.

Regards,
Rahil
3-3206


[IMAGE]  DFARMER@ECT.ENRON.COM  [IMAGE] [IMAGE]  Just about everyone could use a cellphone today. Millions of people are already enjoying the safety, convenience, and independence of owning one.   Now it's never been easier to get your own cellphone...and for FREE.  WorldCom Wireless and AT?Wireless, two of the nation's premier wireless service carriers have the unique ability to handle your cellular service needs, from coast-to-coast. They feature quality cellphones from manufacturers like Nokia, Motorola, and Ericsson.   Even if you already own a cellphone, why not update to one that has the newest features and technology or provide a cellphone for another family member?   With WorldCom Wireless and AT?Wireless, the phones are FREE plus we have made the shopping experience simple and hassle-free!  To take advantage of this great offer, just click HERE ...  	[IMAGE]	     CLICK HERE NOW!        [IMAGE]       [IMAGE]       [IMAGE]              FREE CELL PHONE Here's your chance  to get a FREE cell phone from a  premier wireless service carrier! CLICK HERE NOW!

If you no longer wish to recieve future mailing as a National Brands Member, click here  to unsubscribe.

[IMAGE]


Welcome!  Please stop by.  Mark


Tony Pryor (GPG legal) asked if we have any credentials/tickets left for die
hard democrats in the company.  I know Tony will understand if they are
already spoken for, but if we have some left that would go unused, we have a
volunteer.

How's it going?  Are you partied out yet?


Start Date: 3/5/01; HourAhead hour: 7;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001030507.txt


On September 12, 2001 the Commission accepted the settlement between ISO New England and numerous other parties regarding rates.  The rates are effective July 1, 2001.

If you need further information, please let me know.

Susan Lindberg
x30596


Letter is fine with me.        Thanks,     Otto

Michelle Blaine
01/16/2001 01:00 PM
To: Otto Gonzalez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Katrin Haux/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mariella
Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David
Shields/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eggie
Pichardo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard B Sanders@ECT

Subject: RE: Smith Enron Cogeneration Plant - shareholder complaint/Attorney
Client Privilege

I have confirmed that Mr. Badger and his wife are both named plaintiffs in
the Costambar litigation against SECLP.  Because they are involved in pending
litigation against us, we really cannot give them anything but a "non-answer"
answer attached.  If there are no objections I'll send this to Mr. Badger.
thanks!
Michelle

Otto Gonzalez   01/11/2001 09:01 AM

To: Katrin Haux/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David
Shields/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michelle
Blaine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eggie
Pichardo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: RE: Smith Enron Cogeneration Plant - shareholder complaint

Katrin,

This is indeed a sensitive matter and must be treated accordingly. I do
strongly suggest that before anything you talk to Michelle Blaine of our
litigation team who is very up to date on the class action cases the
Costamabar comunity has against SECLP. There are many half truths and many
lies involved. The plant team has for long been aware of the responsability
and are very diligent and careful to comply with the environmental standards
applicable.

One problem here is that across the bay from where we are, there are two
other power plants (one of them which I managed) and also produce "noise" and
air emissions, one within applicable World Bank standards but no the other,
which belongs to a third group. The prevailing winds bring the emissions from
those plants directly to our plant and the Costambar community. Our air
emissions (within WB standards - monitored during the year) mostly go down
wind southeast away from Costambar. So there are many variables involved.

We must be careful with the shareholder letter since it is very likely the
person may be part of the class action and is fishing for something. But
Michelle can advice you appropriately. If you need any further data from the
plant after talking to Michelle please let me know.

Many thanks,          Otto

	From:  Katrin Haux                           01/10/2001 07:41 PM

To: Otto Gonzalez/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John
Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: RE: Smith Enron Cogeneration Plant - shareholder complaint

Otto,

The following shareholder complaint about Smith Enron's plant in Puerto Plata
was sent to Investor Relations and today forwarded to our attention,
requesting assistance with this matter.  The gentlemen sending the complaint
owns a home in Costambar, a residential community, which, according to his
e-mail, has been  negatively affected by our plant.  He mentions a disturbing
noise level, decreased air quality, dwindling property value and power
outages worse than prior to the plant going online.  The fact that we take
any shareholder complaint very serious, I am preparing a response to this
letter and I am asking for your help.  Could you provide me with any
background information on the alleged complaints and confirm or deny the
issues at matter?  Are there any plans on the way to address any possible
issues?  It had been my impression that the Smith Enron plant not only had no
negative effects on the environment but that great efforts were made to
improve the local community through community relations programs like the
public park adoption, supply of school materials, shipment of medical
supplies and the municipal nursery support.  Can you expand on this?

I realize that this matter has to be managed with extreme caution.  I clearly
will coordinate my reply with you and seek additional approval from legal
prior to responding to the gentlemen.

Thank you in advance for your support and cooperation.  Best regards.  --
Katrin

-----Original Message-----
From: Gordon Badger [mailto:badger@estation.com]
Sent: Friday, December 15, 2000 10:08 AM
To: investor-relations@enron.com
Cc: public-relations@enron.com
Subject: Smith Enron Cogeneration Plant - Puerto Plata, Dominican Republic

?
Iam an Enron shareholder through my holding company First Foundation
Financial Services Inc.

Five or six years ago Smith Enron floated in and installed a power generation
plant at Puerto Plata in the Dominican Republic generating power to sell to
the Dominican power agency. Presentations were made at the time to the local
(mostly American and Canadian) residents in the community of Costambar, where
the plant was to be (and was) built, that:

???????? The noise would not exceed &the sound of the ocean8,

???????? That there would be no air quality damage, and

???????? That the power outs in Costambar would cease.

I have a home in Costambar about a half mile away and over a large hill from
the plant.

???????? The sound is audible in the entire neighborhood;

???????? When they clear the boilers it is oppressive/ear shattering for the
entire community of 800 homes ) in spite of the retrofit silencers;

???????? There is often molecular ash falling and on occasion ) well
documented with pictures ) total black soot coverage down wind for a quarter
mile or more;

???????? Costambar is on the country,s grid and has power outs for an average
of two or more hours per day ) worse than before.

In other words, all of the well-documented and witnessed undertakings have
been proven false.

I was proud of Enron at the beginning because there seemed to be a legitimate
attempt to do the right thing. As time has progressed, however, it has become
clear that there is no solution to the continuing problems. It is also
obvious that the ONLY right thing is to pull up stakes and float the plant to
the original alternate location down the coast ) or to another country.

The problems are insoluble. You simply can,t plop a large energy burning
facility beside an upscale community without event. For a company as
knowledgeable as Enron should be concerning the effects to nearby residents,
it borders on inexcusable that the plant would have been built where it is in
the first place. Having attempted any number of solutions and now recognizing
the absence of solution, the continuing inexcusable action is to &carry on
regardless8 as ahs been the case for the past two or more years.

Enron has been sued by the adjacent (large) hotel which, although only two or
three years old when the plant was built, had to shut down because of
unending guest complaints and refund demands. It now sits as a rotting
monument to the problems. Unfortunately for Enron, the owners are a prominent
Dominican family. I am told they already have a large judgement - but are
going for more. If they haven,t already they surely will ) and they surely
should. What was once an attractive and productive facility is useless and
will remain fallow as long as the plant is there. Soon it will fall totally
beyond repair and there will be no alternative but to raze it.

Houses in the immediate area ) say ? mile/100 homes ) have fallen 50% to 75%
in value, and houses in the community at large have fallen 10% to 50% in
value dependent upon their proximity to the plant. Whereas the hotel value is
in the low millions and the ultimate award will likely be commensurate, the
loss in value to the homes is in the tens of millions. Beyond these financial
events, some of the people in the community are beginning to complain about
new respiratory and other pollution related ailments. The rough estimate of
damages ranges between US$100 million and $150 million without considering
the health issues.

The community has sensible and responsible leadership and has responded in a
sensible and responsible way.? Dissatisfied with the failure to solve the
problem in any approaching a timely fashion, the homeowners have recently
retained competent counsel. Nearly 400 homeowners have joined the class
action to recover their lost property value. The issue of determining lost
value is about to formally begin and the total loss calculated. Soon there
will be no turning back because of the homeowners, investment in the action.

If there were an announcement that the plant is to be moved the claim from
the community would almost certainly go away with the possible exception of
damages for? the few homes that have changed hands during the plant,s life
here. If the plant remains, the action will proceed ) and all things being
equitable, which they ultimately become in the Dominican court system, there
will be large claims awarded. I imagine they will massively overshadow the
few million dollars to move or dismantle the plant.

?

?

I now take off my homeowner,s hat and return to my position as shareholder.
The following (italicized) statements form part of the Enron Mission
Statement. As noted above the company has so far failed to implement these
visions as noted.

?

environment
In everything we do, we operate safely and with concern for the environment.
The way we do a job will affect how our children and our neighbors' children
will live in the future. This is a responsibility we take seriously in all
the different places around the world where we do business.

The Costambar environment has been seriously effected from a noise and air
pollution point of view.

?

integrity
We work with customers and prospects openly, honestly, and sincerely. When we
say we will do something, we will do it; when we say we cannot or will not do
something, then we won't do it.

The community was seriously misled and Enron has been unable to develop
solutions to restore or correct their documented assertions.

?

creativity
We think the entrepreneurial approach stimulates creativity. It calls for new
insights, new ways of looking at problems and opportunities, and a strong
sense of urgency.

The problems have persisted for several years with no recent new initiatives
directed at solving them.

?

respect
We treat others as we would like to be treated ourselves. We do not tolerate
abusive or disrespectful treatment. Ruthlessness, callousness, and arrogance
don't belong here.

The Golden Rule has long since gone wanting in this situation.

?

It is simply not responsible for Enron to continue with a facility that has
and continues to damage a community, financially and from a health point of
view. And it is not financially responsible of Enron management to risk the
payment of tens of millions in claims arising from damages that can otherwise
be avoided at quantifiable and much lower cost.

I,m sure the company has a thick file on this issue already. I,m equally
sure, however, that the measure of damages is reaching a new phase and is
approaching the point where there will be no will by the litigants to turn
back. The plant was constructed during the waning days of the environmentally
insensitive Beleaguer government. The country has undergone substantial
changes since then including changes in The Rule of Law and the judiciary.
There is now a new liberal government that is likely to be very generous with
one of its previously model communities if the matter reaches the courts.

The loss to the shareholders of Enron from inactivity of management is likely
to be immense ) and is avoidable.

I would appreciate a comment on management,s views as quickly as possible.

?

?

Sincerely,

D. Gordon Badger

?

?

badger@estation.com

Puerto Plata

tel - 809 970 7184; fax - 970 7134

?

?

?

?


Start Date: 4/20/01; HourAhead hour: 7;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042007.txt

Error retrieving HourAhead price data - process continuing...


Effective, February 1, 2001, ENW Contractors are required to utilize the SAP/CATS systems to record all time worked.  Each Cost Center Owner is responsible for keeping track of their Contractors' hours on a monthly basis, as well as ensuring Contractor compliance with this mandate.

At the end of each month, ENW Accounting is providing Contractor reporting to Office of the Chair.  However, the accuracy of this report is dependent on Contractors entering their time into SAP.

As a result, going forward, a second "non-compliance" report will be submitted to Office of the Chair on a monthly basis, detailing Contractors not entering their time and the Contractor supervisor.  Please contact Diane Latson (X5-7184) if you believe your contractors are exceptions and should not be entering time.

Contractor Time Entry

Contractors are required to enter their time in eHRonline to one of the following: (1) project numbers, which are called WBS Elements; (2) cost centers, which are associated to a specific department and not a formal project.  It is the Supervisor's responsibility to ensure Contractors are provided with the proper project or cost center coding.

Unlike invoice coding, SAP will only accept a Cost Center or WBS element number for each time entry line.  This means that you cannot enter a Cost Center and a WBS element number on the same line.  SAP will read this information from left to right and will only pick up the first entry.  For example:

		CostCenter		WBS Element
		123456		c.9999.99.99.99

The system will look at this entry and all time will be charged as expense to Cost Center 123456.

Any questions regarding  time entry coding should be directed to ISC HR support x5-4727.


---------------------- Forwarded by Louise Kitchen/LON/ECT on 29/11/99 20:04
---------------------------

	From:  Bob Shults                           29/11/99 18:47

To: Louise Kitchen
cc: Lorraine Becker/HOU/ECT@ECT, Frank L Davis/HOU/ECT@ECT, Jennifer
deBoisblanc Denny/HOU/ECT@ECT, Lisa Gillette/HOU/ECT@ECT, Donna
Greif/HOU/ECT@ECT, Torrey Moorer/HOU/ECT@ECT, Bob Shults/HOU/ECT@ECT, Carrie
Southard/HOU/ECT@ECT, Tara Sweitzer/HOU/ECT@ECT, Arfan Aziz/LON/ECT@ECT,
Angela Connelly/LON/ECT@ECT, Lara Fields/HOU/ECT@ECT, Anna
Gardiner/LON/ECT@ECT, Meagan Brinkworth/LON/ECT@ECT, Dale Neuner/HOU/ECT@ECT

Subject: ETA Changes

This woman would like to make changes to ETA

Ronda Pehar
Dow Chemical
403 267-3593


hey melba -- guess what -- we have come to the point where we no longer need
to make blanco a restricted product.  can we go ahead and change these ep
blanco avg products - both the fixed and index - back to normal unrestricted
products?  let me know...


Bill Reed Sempra's "Chief Regulatory Officer" will replace Gary Cotton on the
ISO Board.


Skilling is meeting with Heath Scheisser at 2PM


As part of the Gas Logistics BCP project we are arranging for you to have IPNet installed in your home.  With IPNet you will have high speed access(DSL) to the Enron network from you home.  In order to verify availability, setup and installation of IPNet please send Kevin Dumas the following information.  Kevin will be handling the scheduling and installation of the service at your home.

Name
Home address
Home City, State, Zip
Home Phone
Work Phone

If you have any questions please feel free to call Kevin(3-1674) or myself.

Thanks,
Bob Hagen
3-1643


dude, serious?  Portland...portland is sooooooooo lame....i can't help it if my parents decided to come off the boat here instead of some place in southern  CA...no i can't move back because i need family support...help me plan my next huge vacation...before law school....not too expensive but fun and relaxing...have any ideas?

lg

----Original Message-----
From: Sewell, Doug
Sent: Tuesday, June 04, 2002 12:35 PM
To: Gang, Lisa
Subject: RE: MID C Question

My last fun trip was to portland.  Going to see the folks for july 4.

DS
Doug Sewell


I left a note for Jeff last night, and apparently he already changed the
deals to reflect APB's price
554905 is $350
554912 is $325

Kate

Kerri Thompson@ENRON
03/21/2001 12:15 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: apb checkout

apb is still sticking with this.  can you pls check with the trader.

thanks

   Kate Symes @ ECT                03/20/2001 05:32 PM

To: Kerri Thompson/Corp/Enron@ENRON
cc:

Subject: Re: apb checkout

I'm trying to get ahold of Jeff Richter on this, but without the brokers
around we probably can't get it done tonight. I would just say we have a
discrepancy with the broker at this point. Let me know if that's okay.

Thanks,
Kate

Kerri Thompson@ENRON
03/20/2001 02:28 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: apb checkout

554905
broker has 350.00

554912
broker has 325.00

thanks!


Confidential Settlement Material under CPUC Rule 51

Gas Accord II Rule 51 Parties:

Attached are the questions we noted at the October 11 and 12, 2000 Gas
Accord II Workshop, and our responses to these questions.  One set of Q&As
are on the Data Book (in Word).  Also attached is a replacement for Item 7
in the Data Book making slight corrections to the EG numbers.  The other set
of Q&As are responses to questions raised during the Cost of Service, Cost
Allocation and Rate Design presentations (in Excel).

We will provide hard copies of this information at tomorrow's Workshop.  If
you have questions, please let us know at any workshop or by e-mail.

Thank you for your participation in Gas Accord II and in the Workshops.

Frank     Ray
Attorney    Director
415-973-2776   415-973-3634
frl3@pge.com   rdw0@pge.com

Attachments

 <<GA II Data Book Q&A.doc>>  <<Data Book Item 7.xls>>  <<Response to 10-12
Workshop Questions.xls>>

 - GA II Data Book Q&A.doc
 - Data Book Item 7.xls
 - Response to 10-12 Workshop Questions.xls


Andrea, Karen, Loftus, Roger and Sally,
Thanks for taking the time to interview me for the Enron Excellence Scholarship.  The interviews were a welcome change of pace and I actually enjoyed them.  Hopefully, you all enjoyed them as well.
I hope that you each have a safe trip back to Houston.
Thanks again for the opportunity,
Chris Cashman
UT MBA 2002


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     : being in fact the thing named and not false, unreal, or
imaginary

Example sentence:
     Todd is a veritable wellspring of information on local
history and folklore.

Did you know?
     "Veritable," like its close relative "verity" ("truth"),
came to English through Middle French from Latin. It is
ultimately derived from "verus," the Latin word for "true,"
which also gave us "verify," "aver," and "verdict." "Veritable"
is often used as a synonym of "genuine" or "authentic" ("a
veritable masterpiece"), but it is also used to stress the
aptness of a metaphor, often in a humorous tone ("a veritable
swarm of lawyers"). In the past, usage commentators have objected
to the latter use, but today it doesn't draw much criticism.

----------------
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or comments about the Word of the Day to
word@Merriam-Webster.com.

(c) 2001 by Merriam-Webster, Incorporated


pls print--I'll look at it in the am (maybe!) DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 08/01/2000
04:13 PM ---------------------------

	From:  Susan Scott                           08/01/2000 01:53 PM

To: Drew Fossum@ENRON, Shelley Corman/ET&S/Enron@ENRON, Mary Kay
Miller/ET&S/Enron@ENRON, Glen Hass/ET&S/Enron@ENRON, Mary
Darveaux/ET&S/Enron@ENRON, sstojic@gbmdc.com
cc:

Subject: TW Options

Here is the latest draft of the filing for transport options.  Significant
changes include:

- added definition of Counterparty
- added captions and reorganized the filing to more clearly reflect
compliance with 154.202
- included an explanation of how the option fee will be part of a negotiated
rate
- added an example of how options will work

I think we need to decide whether we are better off with the type of option
fee explanation I have in this draft, or whether we should instead state the
fee will be market based, and include an explanation that, pursuant to the
Commission's discussion in Order 637, market based rates are appropriate
because we are going to commit to an open season process that will be
nondiscriminatory and that will ensure we aren't withholding capacity from
the market.

Can we have a conference call to discuss your comments this week?  I will
have Janet call to determine your availability.


Who is Paul Kaufan?????


Hi Dave,

I received a signed change order from Randy Milcer (not sure about that)
yesterday.  The form he signed indicates that ABB will be paying Enron, and
has one small mistake in the amount of payments made on the cancelled
transformers ($400 off).  With your permission I will substitute the correct
version so ABB gets the money.

Thanks,

Kay


Dale, here it is.  Michelle

------------------------------------------------------------------------------
---------------------------

Michelle Cash
Enron North America Corp.
1400 Smith Street
Houston, Texas  77002
(713) 853-6401
michelle.cash@enron.com

This message may contain confidential information that is protected by the
attorney-client and/or work product privileges.
----- Forwarded by Michelle Cash/HOU/ECT on 06/19/2000 04:06 PM -----

	Ann Ballard@ENRON
	06/19/2000 10:23 AM

		 To: Andrew Kelemen/HOU/ECT@ECT, Michelle Cash/HOU/ECT@ECT, David
Aamodt/Enron@Gateway
		 cc: Mitchell Taylor/Corp/Enron@ENRON
		 Subject: Section 5.14 of Stock Purchase Agreement between Enron and Sierra
Pacific Resources

I spoke with Keith Fullenweider at V&E regarding PGE's discharge of
liabilities, and whether or not a consent would be required from Sierra
Pacific Resources pursuant to Section 5.14 of the Stock Purchase Agreement.
He agreed that settlement of this type of liability by PGE in the amounts
discussed would not be material to PGE (even settlements with a broader group
of individuals).  Payments made by PGE prior to the closing should not have
any impact on Sierra's ownership of PGE or the value of PGE after closing.
Enron has the right to dividend net income out of PGE before closing (up to
certain limits).  Payment of liabilities would probably reduce the amount
that Enron could dividend before closing.  Its not clear whether or not  the
materiality standard was intended to be material to PGE and PGH II taken as a
whole.  The amounts could be material to PGH II, but we assume that this
would not be paid out of PGH II.

I believe that the benefit plan at issue here is sponsored by Portland
General Holdings, Inc.  That entity is not being sold to Sierra Pacific
Resources.  I do not know whether or not there will be any employees that
participate in that plan after PGE and PGH II are sold to Sierra.  Sierra
will cause a new plan with similar benefits to be adopted at the time of the
sale for PGE and PGH II employees.  I suppose that the plan sponsored by
Portland General Holdings, Inc. might be terminated following the sale of PGE.

Please call me if you have further questions regarding the Stock Purchase
Agreement between Enron and Sierra Pacific Resources.


In case it would be helpful, here is my current draft of some background
information.
I'm still getting comments from a couple of people.
If you don't have time to look at it, just delete this, as I'll be
distributing a final version shortly.

 -----Original Message-----
From:  Shapiro, Richard
Sent: Thursday, July 19, 2001 2:04 PM
To: Scott, Susan
Subject: Re:

Have'nt had conversation yet- will keep you advised.

From: Susan Scott/ENRON@enronXgate on 07/19/2001 11:58 AM
To: Richard Shapiro/NA/Enron@Enron
cc: James D Steffes/NA/Enron@Enron

Subject:

Rick -- Donna Fulton reports that the agenda item on standards of conduct is
going to be for both gas and electric.
Very interested in what you might have learned in your conversation this
morning; call if you have a minute
Susan
x30596


i am gonna buy you a bmw

 -----Original Message-----
From: 	Erin Richardson <erichardson@sarofim.com>@ENRON
Sent:	Thursday, October 11, 2001 3:19 PM
To:	Lenhart, Matthew
Subject:	RE:

whatever, from now on i just won't listen to anything you say.   i will
consider everything that comes out of your mouth worthless.

-----Original Message-----
From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
Sent: Thursday, October 11, 2001 3:07 PM
To: erichardson@sarofim.com
Subject: RE:

it is so easy b/c you get all worked up and you are not sure whether to
believe me or not.

    -----Original Message-----
   From:   Erin Richardson <erichardson@sarofim.com>@ENRON
   Sent:   Thursday, October 11, 2001 2:55 PM
   To:     Lenhart, Matthew
   Subject:  RE:

   you love trying to get on my nerves don't you?

   -----Original Message-----
   From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
   Sent: Thursday, October 11, 2001 2:50 PM
   To: erichardson@sarofim.com
   Subject: RE:

   you have such a temper.

       -----Original Message-----
      From:   Erin Richardson <erichardson@sarofim.com>@ENRON
      Sent:   Thursday, October 11, 2001 2:46 PM
      To:     Lenhart, Matthew
      Subject:  RE:

      matt, it's cool.  i was just playing!

      -----Original Message-----
      From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
      Sent: Thursday, October 11, 2001 2:40 PM
      To: erichardson@sarofim.com
      Subject: RE:

      just chill girl.

          -----Original Message-----
         From:   Erin Richardson <erichardson@sarofim.com>@ENRON
         Sent:   Thursday, October 11, 2001 2:34 PM
         To:     Lenhart, Matthew
         Subject:  RE:

         i'm not getting worked up, i was just typing a playful,
   meaningless
         email.
         stop trying to pick a fight with me.

         -----Original Message-----
         From: Matthew.Lenhart@enron.com [mailto:Matthew.Lenhart@enron.com]
         Sent: Thursday, October 11, 2001 2:29 PM
         To: erichardson@sarofim.com
         Subject: RE:

         it isn't that big of a deal.  why don't you just relax about the
      whole
         thing.

             -----Original Message-----
            From:   Erin Richardson <erichardson@sarofim.com>@ENRON
            Sent:   Thursday, October 11, 2001 2:24 PM
            To:     Lenhart, Matthew
            Subject:  RE:

            no, i'm not.  by the way, i broke down and told jenn about the
      whole
            bonnie
            thing.  she doesn't think i look like her either so now i am
      feeling
            much
            better no thanks to you.

            -----Original Message-----
            From: Matthew.Lenhart@enron.com
   [mailto:Matthew.Lenhart@enron.com]
            Sent: Thursday, October 11, 2001 1:56 PM
            To: erichardson@sarofim.com
            Subject: RE:

            no.  you are so gullable.

                -----Original Message-----
               From:   Erin Richardson <erichardson@sarofim.com>@ENRON
               Sent:   Thursday, October 11, 2001 1:39 PM
               To:     Lenhart, Matthew
               Subject:  RE:

               so, are you really "hitting the strip clubs" tonight?

               -----Original Message-----
               From: Matthew.Lenhart@enron.com
      [mailto:Matthew.Lenhart@enron.com]
               Sent: Thursday, October 11, 2001 1:38 PM
               To: erichardson@sarofim.com
               Subject: RE:

               ok

                   -----Original Message-----
                  From:   Erin Richardson <erichardson@sarofim.com>@ENRON
                  Sent:   Thursday, October 11, 2001 1:36 PM
                  To:     Lenhart, Matthew
                  Subject:  RE:

                  ok, enough.  this isn't funny anymore.

                  -----Original Message-----
                  From: Matthew.Lenhart@enron.com
         [mailto:Matthew.Lenhart@enron.com]
                  Sent: Thursday, October 11, 2001 1:32 PM
                  To: erichardson@sarofim.com
                  Subject: RE:

                  yeah.  i think we are hitting the strip clubs.

                      -----Original Message-----
                     From:   Erin Richardson <erichardson@sarofim.com>
   @ENRON
                     Sent:   Thursday, October 11, 2001 1:23 PM
                     To:     Lenhart, Matthew
                     Subject:  RE:

                     of course i am.  i am going out straight from work.
   you?

                     -----Original Message-----
                     From: Matthew.Lenhart@enron.com
            [mailto:Matthew.Lenhart@enron.com]
                     Sent: Thursday, October 11, 2001 12:35 PM
                     To: erichardson@sarofim.com
                     Subject: RE:

                     i am ready to go tonight.  you going out?

                         -----Original Message-----
                        From:   Erin Richardson <erichardson@sarofim.com>
      @ENRON
                        Sent:   Thursday, October 11, 2001 12:30 PM
                        To:     Lenhart, Matthew
                        Subject:  RE:

                        shut up, stop lying.  i don't believe you at all.

                        -----Original Message-----
                        From: Matthew.Lenhart@enron.com
               [mailto:Matthew.Lenhart@enron.com]
                        Sent: Thursday, October 11, 2001 12:29 PM
                        To: erichardson@sarofim.com
                        Subject: RE:

                        where didn't i go?

                            -----Original Message-----
                           From:   Erin Richardson
   <erichardson@sarofim.com>
         @ENRON
                           Sent:   Thursday, October 11, 2001 12:24 PM
                           To:     Lenhart, Matthew
                           Subject:  RE:

                           where did you go?

                           -----Original Message-----
                           From: Matthew.Lenhart@enron.com
                  [mailto:Matthew.Lenhart@enron.com]
                           Sent: Thursday, October 11, 2001 12:25 PM
                           To: erichardson@sarofim.com
                           Subject: RE:

                           no really.  it was a blast.  little tired but i
   can
         rally
               for
                        tonight.

                               -----Original Message-----
                              From:   Erin Richardson
      <erichardson@sarofim.com>
            @ENRON
                              Sent:   Thursday, October 11, 2001 12:21 PM
                              To:     Lenhart, Matthew
                              Subject:  RE:

                              liar

                              -----Original Message-----
                              From: Matthew.Lenhart@enron.com
                     [mailto:Matthew.Lenhart@enron.com]
                              Sent: Thursday, October 11, 2001 12:22 PM
                              To: erichardson@sarofim.com
                              Subject: RE:

                              i didn't even go home

                                  -----Original Message-----
                                 From:   Erin Richardson
         <erichardson@sarofim.com>
               @ENRON
                                 Sent:   Thursday, October 11, 2001 12:19
   PM
                                 To:     Lenhart, Matthew
                                 Subject:  RE:

                                 great, you don't stand a chance.  i didn't
      get
         home
               until
                     5:30
                           this
                                 morning
                                 and i think i was still drunk when i got
   to
         work.
            how
                  about
                        you?

                                 -----Original Message-----
                                 From: Lenhart, Matthew
               [mailto:Matthew.Lenhart@ENRON.com]
                                 Sent: Thursday, October 11, 2001 11:58 AM
                                 To: erichardson@sarofim.com
                                 Subject:

                                 how are we doing on our contest?

   **********************************************************************
                                 This e-mail is the property of Enron Corp.
         and/or
            its
                     relevant
                              affiliate
                                 and
                                 may contain confidential and privileged
      material
            for
               the
                     sole
                        use
                           of
                              the
                                 intended recipient (s). Any review, use,
            distribution
               or
                           disclosure
                              by
                                 others is strictly prohibited. If you are
   not
         the
                  intended
                           recipient
                              (or
                                 authorized to receive for the recipient),
      please
               contact
                  the
                           sender
                              or
                                 reply
                                 to Enron Corp. at
                  enron.messaging.administration@enron.com
                     and
                           delete
                                 all
                                 copies of the message. This e-mail (and
   any
               attachments
                     hereto)
                           are
                              not
                                 intended to be an offer (or an acceptance)
      and
         do
            not
                  create
                     or
                              evidence
                                 a
                                 binding and enforceable contract between
      Enron
            Corp.
               (or
                  any
                     of
                           its
                                 affiliates) and the intended recipient or
   any
         other
                  party,
                     and
                        may
                              not
                                 be
                                 relied on by anyone as the basis of a
      contract
         by
                  estoppel
                     or
                              otherwise.
                                 Thank you.

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


Any chance for a game this weekend?? Even just 9 holes?

_________________________________________________________________
Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp


I have received several comments about the WSJ data request.

Enron's Tim Beldon wrote me that he would consider it.  The PX's Gene
Waas was concerned based on previous experiences of letting data go to
the WSJ.  I talked with Dynegy's Lynn Lednicky this morning and he
suggested that the PX has aggregated data for several days, and that
releasing the aggregate data with individual bid data from our members
would give the WSJ a better window into the issues.  That is, simply
releasing your bid data will not tell the WSJ anything of value.

I know that Rebecca would insist that the dates for which any data are
polled our at her choice, not ours.  It must be necessary to assure
there is no possibility of bias.  I am wondering if the PX would be
willing to assist us by putting together aggregate data for days which
the WSJ selects, and then give us the opportunity to release our
individual data for the same days?

I am also wondering if we shouldn't have an off-the-record
teleconference call with the WSJ whereby both sides can get a better
understanding of what the WSJ wants, and how we can best provide it.
Would anyone be interested in me setting up such a meeting for next
week, say Wednesday or Thursday?

gba


Friday, January 26, 2001
4:30 PM EST
Conference Call with:

Jim Steffes
Linda Robertson
Cynthia Sandherr
Jeff Dasovich

Dial in: 1-800-713-8600 Passcode 6261

Lora Sullivan
Federal Government Affairs Representative
Enron
1775 Eye Street, NW
Suite 800
Washington, DC  20006
202-466-9142
202-828-3372 (fax)
email:  lsulliv@enron.com


Toni:  Debra is a nice enough person, but does not really fit our needs.  She
did not seem to fully understand what our job would entail, and I had a hard
time figuring out what she does now.  She does not seem to possess the energ
y level or the sense of urgency our job requires.  She is clearly not a hire
from my perspective.  Call me if you need anything else.


The new draft date is 8/20 by overwhelming majority.  Stay tuned for further
details.


This is what I have for Canada's p&l for January 2001.  Can you let me know
what you reported so that we can make sure that it is the same?

Kathy


Sherri,

Attached is a revised version of the Payment Guaranty between Enron North
America Corp. and SCANA to cover gas purchase transactions.

Please give me a call with your questions and or comments regarding the
enclosed.

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


they didn't say i was the coolest person they know at work?


How I wish all the bosses treat their employees as the man in this story did!!!
----------------------------------------------------------------------------
First-Day Employee

My father had a small business, employing approximately fifteen people at any given time.  We pasteurized and homogenized milk from farmers each morning, and put it into bottles for home use and for restaurants.  We also put the milk into small containers for the school kids everyday.  We also made a wonderful little thing called homemade ice cream.  We sold all of these milk products, and many more, in the front of a dairy building, which had been fashioned into a small store with a large soda fountain.  During the summer months, there were rows and rows of eager tourists lined up at the ice cream counter, waiting for their daily indulgence of my father's most exquisite recipes of some twenty-seven flavors of homemade wonder.

Being such an extremely busy little store meant that the employees had to work fast and furious for hours at a time, with little rest.  The swarm of tourists never stopped and our "rush hour" lasted many hours on hot days.

I had worked for my father since I was young, as did all seven kids in our family.  So I had seen many new employees come and go due to the fast and frenetic pace. One day, in 1967, we had a new employee, Debbie, who wanted to work in the store for the summer.  She had never done this type of work before, but planned to give it her all.

On her first day, Debbie made just about every mistake in the book.  She added the sales wrong on the cash register, she charged the wrong prices for items, she gave the wrong bag of food to the wrong customer, and she dropped and broke a half-gallon of milk.  The torture of watching her struggle was too much for me.  I went into my father's office and said, "Please go out there and put her out of her misery."  I expected him to walk right into the store and fire her on the spot.  Since my father's office was situated within view of the sales counter, he had no doubt seen what I was talking about. He sat, thoughtful, for a moment.  Then he got up from his desk and walked over to Debbie, who was standing behind the counter.

"Debbie," he said, as he put his hand gently on her shoulder.  "I have been watching you all day, and I saw how you treated Mrs. Forbush."

Debbie's face began to flush and tears began to well in her eyes as she struggled to remember Mrs. Forbush from the many women she had given the wrong change to or spilled milk on.

My father continued, "I've never seen Mrs. Forbush be so polite to any one of my employees before.  You really knew how to handle her.  I am sure that she is going to want you to wait on her every time she comes in.  Keep up the good work."

In return for being a wise and compassionate employer, my father got a loyal, and hardworking employee for sixteen years...and a friend for life.

By Mary Jane West-Delgado, from  A 6th Bowl of Chicken Soup for the Soul
=================================================
Thought for the day:

On Friendship:
Adversity is the touchstone of friendship. -- French Proverb
A friend is one who walks in when the rest of the world walks out.