_________________________________________________________________

            B R E A K F A S T   W I T H   T H E   F O O L
                      Friday, December 1, 2000

benjamin.rogers@enron.com
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--Mark Twain

PEPSI COURTING QUAKER, AGAIN
Quaker Oats and Pepsi are talking once more, but will the
outcome be the same?

By Mike Trigg

The Quaker Oats (NYSE: OAT) story took another spin yesterday,
when the world's second-largest soft drink company, PepsiCo
(NYSE: PEP), resumed talks to purchase the maker of Gatorade for
$14.3 billion. Not long ago, similar discussions were brought to
a halt after Quaker rejected Pepsi's offer, citing a dispute in
price.

The story with Quaker is an interesting one. After similar talks
with Coca-Cola (NYSE: KO) and French food conglomerate Groupe
Danone (NSYE: DA) failed to materialize, investors are left to
ask: Is this time for real?
http://www.fool.com/m.asp?i=223139

According to The Wall Street Journal, the two sides appear close
to agreement, with the deal potentially wrapping up in the next
couple of days. If the two sides in fact do reach agreement, an
announcement would be made Monday morning. Both companies have
planned board meetings for this Saturday.
http://www.lnksrv.com/m.asp?i=223140

Apparently, the proposed deal is no different than the last.
Quaker Oats shareholders would receive 2.3 shares of Pepsi
stock, valued at $104.36, based on Pepsi's closing price of
$43.38 yesterday. That's a 27% premium to Quaker Oats, stock
price as of November 2, the day original talks were made public.
Pepsi hasn't offered a "collar" -- the original deal breaker --
to Quaker, which is a form of price protection that fixes a
price within a set limit of how far the buyer's shares can rise
or fall. The same Wall Street Journal article reports that an
arrangement is being negotiated that would allow Quaker to
abandon the deal if the value provided to Quaker shareholders
became less than $90 per share upon closing.

If the deal does go through this time around Pepsi would surpass
Coca-Cola as the leader in the non-carbonated U.S drinks market,
holding nearly one-third of the market, compared to Coca-Cola's
21%. According to the Street, Pepsi would also be able to jump
start sales of Quaker Chewy Granola bars, selling them through
its Frito-Lay food division.
_________________________________________________________________

NEWS TO GO

Information transfer device maker Crossroads Systems (Nasdaq:
CRDS) announced better-than-expected third-quarter results after
the market's close yesterday, reporting a net loss (excluding
goodwill and stock compensation) of $4.8 million, or $0.18 per
share, compared to a loss of $870,000, or $0.04 per share, in
the year-ago period. The Street consensus called for the company
to lose $0.21 per share. Crossroads, top line came in at $8.4
million, an 18% increase year-over-year.

Discount airline company Cheap Tickets (Nasdaq: CTIX) announced
that CFO Dale Jorgensen plans on retiring in February. Jorgenson
will remain with the company after his retirement to aid in the
transition and provide assistance on certain projects. ``While
my time with Cheap Tickets has been very rewarding, I have
decided to devote more time to my family and other personal
interests. I am very pleased to have been part of the progress
the company has made moving into the public market and see a
great future for Cheap Tickets' unique multi-channel revenue and
distribution model,'' said Jorgensen.

Carbon dioxide seller Kinder Morgan Energy Partners (NYSE: KMP)
announced a deal with GATX Corp. (NYSE: GMT) to purchase two oil
product pipelines and 12 storage terminals for $1.15 billion in
cash and debt. Kinder Morgan Partners Chairman and CEO Richard
Kinder estimated the deal would increase earnings per share
between $1.62 and $1.75 in 2001, with the Street consensus
calling for the company to earn between $1.50 and $1.62 a share
in the coming year. The deal is expected to close in the first
quarter of next year.

Heating and cooling products provider Modine Manufacturing
(Nasdaq: MODI) announced that it was revising earnings and sales
forecasts for its third quarter and the full fiscal year (ends
March 31, 2001). The Racine, Wisconsin-based company expects
third-quarter revenue to be down 10% to 13% and earnings 55% to
65%. For the full year, sales should be down 7% to 10% with
earnings dropping between 25% and 30%. The company cited a weak
euro and lower sales in the heavy-truck and light-vehicle
markets. Modine earned $2.20 per share in the previous year.

Steel processing company Worthington Industries (NYSE: WOR)
announced that its second-quarter (ended yesterday) earnings
would fall short of expectations and that it had halted its
proposed $300 million acquisition of three Pennsylvania limited
partnerships: MetalTech, NexTech, and GalvTech. The company said
earnings would be substantially lower than the $0.15 per share
it posted in the previous quarter and that the full-year Street
earnings expectation of $1.07 was unrealistic. The Street
consensus called for the company to earn $0.22 per share in the
second quarter. The company cited the weakness in several of its
business, including its steel-processed products operations.
_________________________________________________________________

EDITORS' PICK

Gene Logic CEO Mark Gessler talks about the fascinating things
the company will be able to accomplish via human-genome mining.
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17 INDUSTRIES WORTH A LOOK
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i'm making money hand over fist. don't come back


California Power Exchange May Lose Monopoly on Federal Ruling
Bloomberg, 11/04/00

Grp Urges Re-Regulation In Wake Of FERC Calif Pwr Order
Dow Jones Energy Service, 11/03/00

FERC Leaves Calif Pwr Consumer Relief In Lap Of Congress
Dow Jones Energy Service, 11/03/00

State Utilities Left With Burden of Reclaiming Costs From Crisis Energy:
Issue will remain unsettled until next year when a new agreement is reached
and flaws in deregulation are fixed.
Los Angeles Times, 11/03/00

USA: Calif. gov. scraps Asia trip to deal with power woes.
Reuters English News Service, 11/02/00

FERC Leaves Calif Pwr Consumer Relief In Lap Of Congress
Dow Jones Energy Service, 11/02/00

Calif Legislators Urge FERC To Hold Nov Mtg In San Diego
Dow Jones Energy Service, 11/02/00
USA: Calif. Senator Boxer wants more help for power markets.
Reuters English News Service, 11/02/00

California Power Exchange May Lose Monopoly on Federal Ruling
11/4/0 11:56 (New York)

California Power Exchange May Lose Monopoly on Federal Ruling

     Pasadena, California, Nov. 4 (Bloomberg) -- The California
Power Exchange, the marketplace where the state's three investor-
owned utilities must buy electricity, is on the brink of losing
its monopoly following this summer's power-price surge.
     The Federal Energy Regulatory Commission this week proposed
eliminating a state rule that PG&E Corp., Edison International and
Sempra Energy purchase almost all their power through the
exchange, which cost California consumers more than $100 million
to create. FERC expects to issue a final order by year-end.
     Under the proposal, the utilities could buy electricity
through other exchanges or directly from providers such as Enron
Corp. and Dynegy Inc. FERC said the move would help fix
California's ``seriously flawed'' market, where supply shortages
forced utilities to cut power to some customers this summer.
     ``The role of the power exchange is going to shrink,'' said
Josh Rokach, an adviser to FERC Commissioner Curt Hebert. ``People
will rely more on bilateral contracts'' between utilities and
generators, he said.
     Nettie Hoge, executive director of the Utility Reform
Network, a San Francisco-based consumer group, went further:
``It's quite possible that the exchange will wither away if we
follow everything FERC has ordered.''

                         Expansion

     Others aren't so sure. Though intended to serve only
California, the exchange now handles one-fourth of the power
delivered in the Western Systems Coordinating Council, whose
members supply 14 western states, two Canadian provinces and parts
of Mexico.
     Further expansion into areas such as Nevada, Arizona and
Alberta, Canada, will offer local electricity buyers and sellers
``a well-developed market operator ready for competition,''
exchange President George Sladoje said in a statement.
     California lawmakers established the nonprofit exchange in
1996, as part of the deregulation of the state's electricity
market.
     The utilities buy 80 percent to 90 percent of their
electricity on the exchange, based in Pasadena, California. The
three utilities together supply about 75 percent of the state's
power, with the rest coming from cooperatives and municipal
agencies.

                         Long-Term Contracts

     The exchange is a day-ahead market, where buyers and sellers
set prices for power to be delivered the next day. The California
Independent System Operator, which oversees the state's grid,
sells electricity in the hourly market, which fills last-minute
needs.
     FERC wants to give the utilities the opportunity to lock in
prices for power through longer-term contracts known as forwards.
Arranging supplies in advance would reduce the amount of power
that utilities must buy during periods of peak consumption, when
prices can soar, FERC says.
     Though the exchange has operated a forwards market since July
1999, the utilities until recently were prohibited from using it.
Even now, they must receive approval from the California Public
Utilities Commission to enter such contracts, and the amount of
electricity they can buy is limited.
     By comparison, municipal utilities such as the Los Angeles
Department of Water and Power can freely enter into long-term
contracts and don't pay the transaction fees charged by the
exchange.
     Even if PG&E, Edison and Sempra are allowed to obtain
supplies through alternative means, the exchange isn't likely to
go away, said Jan Smutny-Jones, executive director of Sacramento-
based Independent Energy Producers, a trade group that represents
about 50 power producers.
     ``There will continue to be a need for a place for people to
do day-ahead transactions,'' Smutny-Jones said.

                         Transparency

     The exchange's ability to compete would depend in part on
whether rivals such as Enron and Dynegy, which sell electricity
throughout the U.S., are required to list prices openly, exchange
spokesman Jesus Arredondo said.
     ``Those folks don't have transparency right now,'' he said.
``If there isn't a level playing field, we're going to be at a
disadvantage.''
     Yet transparency on the exchange hasn't kept prices low.
During this year's hottest months, as demand for air conditioning
soared, the prices utilities paid for electricity through the
exchange and the California ISO more than quadrupled from a year
earlier.
     Utilities weren't able to respond to the price jump by
cutting their purchases because they needed the power, noted Bob
Levin, senior vice president of planning at the New York
Mercantile Exchange, one of the exchanges hoping to attract
business from California's utilities.
     ``FERC's proposal is a good way to start improving the
market,'' Levin said.
     Not everyone thinks allowing companies to buy outside the
exchange is without risk. State Senator Steve Peace, a Democrat
from El Cajon who co-wrote the state's 1996 deregulation law,
worries that oil and gas companies, big users of electricity for
their refineries, might draw up supply agreements in secret and
keep consumers in the dark about the terms.

                        Monopoly's End

     He warned in an Oct. 3 letter to FERC Chairman James Hoecker
that eliminating the exchange in favor of bilateral contracts
``would be disastrous, particularly for small commercial and
residential consumers.''
     Keeping California power prices a secret would be difficult,
even without the exchange, some industry observers say.
     Publishing companies such as Platt's, the commodities
division of Standard & Poor's, Financial Times Energy, and
Bloomberg LP report energy prices from around the world.
     They would be expected to begin collecting more information
in California as well if the market requires it, said Mark Palmer,
vice president of communications for Houston-based Enron Corp.,
the world's largest trader of electricity.
     ``You'll probably see California price indexes,'' Palmer
said.
     Spokesmen for Rosemead, California-based Edison and San Diego-
based Sempra said their companies wouldn't comment on future of
the exchange or their power purchases until FERC issues a final
order. PG&E, based in San Francisco, is reviewing the agency's
report, a spokesman said.
     Whatever FERC's decision, the exchange's future ultimately
should be decided by the market, not the state, said Richard
Bilas, a member of the California Public Utilities Commission.
     ``If the exchange is operating efficiently, it will survive
on its own,'' he said. ``Not as a sanctioned monopoly.''

--Daniel Taub in the Los Angeles newsroom (323) 801-1261, or at
dtaub@bloomberg.net, and Christopher Martin in Chicago, with
reporting by Liz Skinner in Washington, through the Princeton
newsroom (609) 279-4000/shf/alp

Story illustration: For California Power Exchange prices, see
{CAPX <GO>}. For a chart of California-Oregon border electricity
prices for the past year, see {ELGFCOON <Index> GP D <GO>}.

Grp Urges Re-Regulation In Wake Of FERC Calif Pwr Order

11/03/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- State regulators and legislators should re-regulate
deregulated power markets after federal regulators left California consumers
in the lurch, Public Citizen said Friday.
The Ralph Nader-founded activist group decried an order by the U.S. Federal
Energy Regulatory Commission Wednesday, which found electricity rates in
California were unjust and unreasonable, but failed to find legal reason to
refund money to consumers.
FERC found that the "seriously flawed" state-mandated market structure was to
blame, rather than deregulated power producers, for the sky-high power prices
roiling the first-in-the-nation deregulated electricity market.
"In short, FERC found that California consumers were robbed of billions of
dollars - reportedly more than $5 billion. But the agency can't find the
robber, and thus it can't protect the victims of the crime," said Charlie
Higley, the group's energy research director.
"FERC's inability to protect consumers from unlawful price gouging reveals
that state electricity deregulation has created unregulated monopolies and
cartels that are free to fleece consumers for billions without fear of
retribution," Higley said.
Public Citizen's reaction served to underscore concerns voiced by FERC
regulators that the consumer backlash spurred by California's flawed market
design will work against continuing efforts by federal and state policymakers
to further deregulate U.S. electricity markets.
Public Citizen also called for the U.S. Justice Department to launch an
investigation "to determine who is responsible for the unlawful abuse of
California ratepayers by greedy power suppliers."
Power producers angrily reject such characterizations. They say market
forces, environmental regulations, hot weather, depressed hydropower supplies
and record-high natural gas prices are behind the state's electricity-supply
and market-volatility woes.
-By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com

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

FERC Leaves Calif Pwr Consumer Relief In Lap Of Congress

11/03/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

(This article was originally published Thursday)

WASHINGTON -(Dow Jones)- Members of Congress representing the San Diego area
expressed disappointment Thursday that federal regulators found they couldn't
order refunds to power consumers hard by the state's high-flying power market.
The U.S. Federal Energy Regulatory Commission Wednesday issued an order in
response to chronic power-supply problems in California that have sent
wholesale power prices soaring.
While the order called for a sweeping restructuring of the market to lessen
wholesale power price volatility, the commission found it lacked authority to
refund money to consumers.
"Clearly federal legislative action is necessary because FERC didn't take the
authority I think it has," said Rep. Bob Filner, R-Calif.
"All the consumers and utilities are still on the line (to absorb soaring
power costs) because FERC couldn't find any culpability anywhere," Filner
said. "FERC should have found some specific culpability here."
Rep. Brian Bilbray, R-Calif., who has made the power price shock an issue in
his re-election campaign, criticized the commission for blaming the market
structure dictated by state legislators, rather than power providers, for the
soaring costs.
"I've never known a federal agency to override a state legislature like
that," Bilbray said, accusing FERC of shrugging its shoulders by recognizing
that market abuses occurred, but blaming the state lawmakers for it.
"FERC's pointing the fingers at the state and not the power companies," he
said.
The commission's conclusion will make it all the more difficult to prod
Congress to provide relief for California consumers, said Bilbray, who like
Filner has sponsored a windfall profits bill in Congress.
Bilbray suggested that California Gov. Gray Davis should call back the state
Legislature in emergency session to address the problem. If he doesn't, then
Congress will need to step in, he said.
Filner said he is drafting legislation based on FERC's conclusions to give
FERC the authority to refund consumers the windfall profits of the state's
deregulated power producers.
The bill would allow FERC to provide refunds in cases like California's where
the commission found rates to be unjust and unreasonable, but found no
specific companies to blame for the situation, Filner said.
FERC Chairman James Hoecker anticipated disappointment as the commission
discussed its order Wednesday.
"Those eagerly anticipating this order expected two things, a lynching and a
transfer of large amounts of money," Hoecker said. "Round up the bad guys ...
and order digorgement of all their ill-gotten gains."
Hoecker noted that if he were a retiree on a fixed income or a small business
owner in San Diego, "I'd want my money back."
But, he said, it's "not as simple as all that."
Instead, Hoecker put the onus on Congress to act legislatively if the
commission is to respond for consumers. FERC's ability to order retroactive
refunds "ultimately rests with Congress," he said.
-By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com

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

Business; Financial Desk
State Utilities Left With Burden of Reclaiming Costs From Crisis Energy:
Issue will remain unsettled until next year when a new agreement is reached
and flaws in deregulation are fixed.
CHRIS KRAUL; NANCY RIVERA BROOKS
TIMES STAFF WRITERS

11/03/2000
Los Angeles Times
Home Edition
C-1
Copyright 2000 / The Times Mirror Company

The $6-billion wrecking ball that is waiting to slam either California
consumers or the utility industry is back in the control of state officials
after a federal commission this week failed to even address the problem.
The Federal Energy Regulatory Commission declared Wednesday that California
has defects in its deregulated electricity market and proposed sweeping
changes, but declined to deal with one of the most serious problems.
The summer's electricity crisis forced the state's three investor-owned
utilities to purchase wholesale electricity costing $6 billion more than what
they could charge consumers under existing rates.
Southern California Edison and Pacific Gas & Electric now want consumers to
pay the full cost of those purchases in the form of monthly surcharges over
the next five years--a plan that would push into the distant future any hope
that deregulation would bring relief to the high-cost California electricity
market.
But state officials and Wall Street experts doubt the industry has any
realistic chance of collecting all $6 billion. Despite their confident public
stand, the utilities will likely settle with consumers.
"I'd say the chances of utilities being made whole is zero, and the chances
of them eating all the undercollections is zero," said Steve Fetter, an
analyst with debt raters Fitch of New York. Fetter is former chairman of the
Michigan Public Service Commission.
A high state official who asked not to be named said a majority of the Public
Utilities Commission believes that utilities are not entitled to the $6
billion under current law. "The commission has interpreted the law the same
way five times in a row," the official said. "So if anything is to change,
the legislature will have to write new law."
And yet division within the PUC has been evident lately, adding to the
confusion. Despite repeated PUC declarations that SCE and PG&E cannot raise
rates under the current deregulation law, the utilities were encouraged when
PUC President Loretta Lynch said on Oct. 17 that "the basic assumptions
underlying AB 1890 are ripe for reconsideration."
The electricity cost issue is a political hot potato that California
politicians and regulators clearly hoped the Federal Energy Regulatory
Commission would handle by declaring costs "unjust and unreasonable" and by
ordering generators to give back profits.
But FERC said it found no evidence of specific market abuses and that it
lacked the legal authority to order refunds of federallysanctioned wholesale
rates in the absence of market-power evidence.
Early next year, after a new state Legislature is sworn in and Gov. Gray
Davis appoints his third of five members on the state Public Utilities
Commission, lawmakers, officials and stakeholders will have to hammer out an
agreement, which will probably require a new law. Wall Street is already
signaling its impatience.
"Our position has been that it is an unsettled situation as far as utilities
are concerned," said Richard Cortright, a director at Standard & Poor's
debt-rating service that downgraded its outlook on California utility debt to
negative last summer.
Consumer groups on the one side are clamoring for the utilities and power
companies to pony up for the costs of a failed experiment in a free market
for electrons, while on the other side the utilities who want full
restitution from customers for the electricity they dutifully delivered at
going market rates.
"What FERC effectively did was say to California: You guys have to choose
between utilities and consumers," said Douglas Heller, consumer advocate at
the Santa Monica-based Foundation for Taxpayer and Consumer Rights. "It's up
to Gov. Davis and the Legislature to do the right thing and stand up to these
utility companies."
FERC's proposed order "really passed the buck" and left the PUC with clear
jurisdiction over the utilities' transition costs, said Bob Finkelstein, a
lawyer with The Utility Reform Network.
The San Francisco consumer group has proposed that the PUC require the
utilities to use sharply increasing profits earned through deregulation, such
as from the sale of power into the market, to pay off the cost of electricity
that they have not been able to pass along to customers.
Utilities will argue just as strenuously that to make them absorb the
unexpected costs of a vital service is unfair and would impinge on needed
investments in electric infrastructure.
PG&E and SCE have each petitioned the state Public Utilities Commission for
permission to begin collecting those billions of dollars by approving rate
increases. In SCE's case, the proposed rate increase would be no more than
10%, which would add about $5.50 to the typical monthly residential bill.
Although wholesale electricity rates have risen dramatically, SCE and PG&E
customers are still protected by a rate freeze until utilities pay off costs
related to "stranded assets" such as nuclear, wind and other noneconomic
assets, or until March 2002.
San Diego Gas & Electric got out from under the rate freeze after paying off
its stranded assets early in 1999, and began passing along wholesale
electricity costs directly to customers. But the state legislature imposed a
rate cap last summer after wholesale rates doubled and tripled, causing a
political firestorm.
Steve Baum, chief executive of SDG&E parent Sempra Energy, said Thursday that
he was disappointed that the FERC did not open the way for refunds from the
power generators.
"This is going to make Wall Street less than happy," Baum said. "They say
they have no basis for refunds but that door is not slammed shut."

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

USA: Calif. gov. scraps Asia trip to deal with power woes.

11/02/2000
Reuters English News Service
(C) Reuters Limited 2000.

SACRAMENTO, Calif., Nov 2 (Reuters) - California Gov. Gray Davis Thursday
scrapped a planned trip to Asia this month to remain at home to cope with the
state's increasingly troubled power market, officials said.
"The Asia trip has been postponed. We do not have a date for rescheduling,"
spokeswoman Hilary McLean said.
Davis had been due to visit Singapore, Brunei, Beijing, Shanghai between Nov.
11-18. Instead, he now intends to remain in California to tackle the energy
problems head-on.
The Federal Energy Regulatory Commission's (FERC) this week said that a probe
into California's newly deregulated electricity markets had shown that
drastic changes were needed to prevent a repetition of this past summer's
price spikes and near power blackouts.
But the regulators, though declaring power prices charged this summer were
not "just and reasonable," as required by law, said they did not have the
legal authority to demand refunds from generators, some of whom have made
huge profits selling power in the California market.
McLean said that Davis "has been very focused on California's electricity
problems, and wants to make sure that California's electricity supply is
reliable and affordable."
"The governor is going to be needed to here to continue to engage in this
issue," she said, without providing any further detail.
(Andrew Quinn in San Francisco bureau, 415-677-2541,
andrew.quinn@reuters.com).

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

FERC Leaves Calif Pwr Consumer Relief In Lap Of Congress

11/02/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

WASHINGTON -(Dow Jones)- Members of Congress representing the San Diego area
expressed disappointment Thursday that federal regulators found they couldn't
order refunds to power consumers hard by the state's high-flying power
market.
The U.S. Federal Energy Regulatory Commission Wednesday issued an order in
response to chronic power-supply problems in California that have sent
wholesale power prices soaring.
While the order called for a sweeping restructuring of the market to lessen
wholesale power price volatility, the commission found it lacked authority to
refund money to consumers.
"Clearly federal legislative action is necessary because FERC didn't take the
authority I think it has," said Rep. Bob Filner, R-Calif.
"All the consumers and utilities are still on the line (to absorb soaring
power costs) because FERC couldn't find any culpability anywhere," Filner
said. "FERC should have found some specific culpability here."
Rep. Brian Bilbray, R-Calif., who has made the power price shock an issue in
his re-election campaign, criticized the commission for blaming the market
structure dictated by state legislators, rather than power providers, for the
soaring costs.
"I've never known a federal agency to override a state legislature like
that," Bilbray said, accusing FERC of shrugging its shoulders by recognizing
that market abuses occurred, but blaming the state lawmakers for it.
"FERC's pointing the fingers at the state and not the power companies," he
said.
The commission's conclusion will make it all the more difficult to prod
Congress to provide relief for California consumers, said Bilbray, who like
Filner has sponsored a windfall profits bill in Congress.
Bilbray suggested that California Gov. Gray Davis should call back the state
Legislature in emergency session to address the problem. If he doesn't, then
Congress will need to step in, he said.
Filner said he is drafting legislation based on FERC's conclusions to give
FERC the authority to refund consumers the windfall profits of the state's
deregulated power producers.
The bill would allow FERC to provide refunds in cases like California's where
the commission found rates to be unjust and unreasonable, but found no
specific companies to blame for the situation, Filner said.
FERC Chairman James Hoecker anticipated disappointment as the commission
discussed its order Wednesday.
"Those eagerly anticipating this order expected two things, a lynching and a
transfer of large amounts of money," Hoecker said. "Round up the bad guys ...
and order digorgement of all their ill-gotten gains."
Hoecker noted that if he were a retiree on a fixed income or a small business
owner in San Diego, "I'd want my money back."
But, he said, it's "not as simple as all that."
Instead, Hoecker put the onus on Congress to act legislatively if the
commission is to respond for consumers. FERC's ability to order retroactive
refunds "ultimately rests with Congress," he said.
-By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com

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

Calif Legislators Urge FERC To Hold Nov Mtg In San Diego

11/02/2000
Dow Jones Energy Service
(Copyright (c) 2000, Dow Jones & Company, Inc.)

LOS ANGELES -(Dow Jones)- Seven federal legislators from California are
urging the Federal Energy Regulatory Commission to hold its scheduled Nov. 9
public hearing on California's electricity problems in San Diego, not
Washington.
At the hearing, FERC will announce proposed remedies based on a FERC report
issued Wednesday that found California's electricity market seriously flawed.
The legislators said in a Nov. 1 letter to FERC chairman James Hoecker that
FERC should hold its hearing in San Diego because that is where people
affected by proposed remedies live. The letter was signed by Sens. Dianne
Feinstein and Barbara Boxer; and Reps. Bob Filner, Brian Bilbray, Ron
Packard, Duncan Hunter, and Randy Cunningham.
San Diego residents were the first in the nation to be charged deregulated
rates, and many saw their bills double and triple this summer due to a spike
in wholesale power prices. FERC held hearings in San Diego in August to
determine why those prices were so high.
The letter asked that a supplementary hearing be held in San Diego if the
Washington hearing couldn't be moved.
"Clearly, the electricity crisis has caused more than a ripple in San
Diegans' lives - a tsunami is more like it. For that reason, your Commission
should hear of the real impacts that your order would have on the people and
institutions of San Diego," the letter said.
Nobody at FERC could be reached for comment.
-By Jessica Berthold, Dow Jones Newswires; 323-658-3872;
jessica.berthold@dowjones.com
USA: Calif. Senator Boxer wants more help for power markets.
By Patrick Connole

11/02/2000
Reuters English News Service
(C) Reuters Limited 2000.

WASHINGTON, Nov 2 (Reuters) - California Sen. Barbara Boxer on Thursday said
she was "distressed" that U.S. regulators did not provide immediate relief
for her state's power consumers when they backed draft measures on Wednesday
for fixing the troubled electricity system there.
Democrat Boxer, in a letter to U.S. Federal Energy Regulatory Commission
(FERC) Chairman James Hoecker, urged the commission to take stronger actions
before their draft order becomes final next month to aid consumers.
"It is imperative that FERC act promptly to address California's energy
crisis," Boxer wrote to Hoecker.
Boxer wants FERC to approve a regional price cap throughout the 14 Western
states on electricity price rates, order utilities to provide refunds to
California customers and convene the next FERC meeting on the issue in San
Diego on Nov. 9 so that California consumers can weigh in on the matter.
San Diego consumers were most impacted by a sharp price rise in California's
wholesale power markets this summer, since under the state's deregulation
plan they were forced to pay market rates without a safety net.
FERC did not order refunds as part of its draft remedies announced on
Wednesday, saying they legally did not have the power to do so. The Nov. 9
meeting is scheduled at commission headquarters in Washington D.C.
The commission approved measures on Wednesday to establish independent
oversight boards for the California Independent System Operator and Power
Exchange (PX). Both entities help balance power supplies for state utilities
and act as auction houses for buying and selling last-minute power.
Other measures would eliminate the need for the three largest California
utilities - Pacific Gas and Electric, San Diego Gas and Electric and SoCal
Edison - to have to sell power to, or buy power from the PX.
San Diego Gas & Electric is a unit of Sempra Energy , SoCal Edison is a unit
of Edison International and Pacific Gas is owned by PG&E Corp. . The three
are based in the San Diego, Los Angeles and San Francisco areas,
respectively.
Other changes backed by FERC would allow the three investor-owned utilities
to manage risk by allowing long and intermediate-term power supply contracts
and would temporarily modify market auction bid processes.

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


Mary,

Here's an updated list of providers that we can pull information from.
Meaning their OASIS is updated to the most recent specification.

Diana
---------------------- Forwarded by Diana Scholtes/HOU/ECT on 03/05/2001
01:20 PM ---------------------------
From: William Crooks/ENRON@enronXgate on 03/02/2001 08:56 AM CST
To: Diana Scholtes/HOU/ECT@ECT
cc:
Subject: Foster OASIS - Provider list

Diana:

 Here is the current status of the providers you want harvested.  The ones
listed as "Not Located" are still being worked on.  SCL shows up as a control
area and not a transmission provider, but rather, a control area.  Please let
me know if there are others.

Long Name 	Short Name	Status
Avista Corp.	AVA	Fixed
Arizona Public Service Company	AZPS	Fixed
B.C. Hydro & Power Authority	BCHA	Fixed
Basin Electric Power Cooperative	BEPC	Fixed
Bonneville Power Administration	BPAT	Fixed
Colorado Springs Utility	CSU	Fixed
El Paso Electric 	EPE	Fixed
Imperial Irrigation District	IID	Not Located
Idaho Power Company	IPCO	Not Located
Los Angeles Department of Water and Power	LDWP	Fixed
Montana Power Company	MPCO	Fixed
Nevada Power Company	NEVP	Fixed
PacifiCorp	PAC	Not Located
Portland General Electric	PGE	Fixed
Public Service Company of New Mexico	PNM	Fixed
PacifiCorp	PPW	Fixed
Platte River Power Authority	PRPA	Fixed
Public Service Company of Colorado  CA&TP	PSCO	Fixed
Puget Sound Energy Transmission	PSEI	Fixed
Seattle City Light	SCL	Control Area
Sacramento Municipal Utility District	SMUD	Fixed
Sierra Pacific Power Company	SPP	Fixed
Southwestern Public Service Company	SPS	Fixed
Salt River Project	SRP	Fixed
Tucson Electric Power Company	TEPC	Fixed
Texas-New Mexico Power Co. - Control Area	TNPN	Not Located
Tri-State Generation and Transmission Association,	TSGT	Fixed
Western Area Power Administration	WALC	Not Located
Western Area Power Administration	WALM	Not Located

Regards,
Bill x53492


Japan's Electricity Newspaper ("Denki Shimbun", the equivalent of Megawatt
Daily) has been running a series of articles about the new century.  Several
of these have focused on the power industry in the U.S.  A friend of mine ran
across one on Enron that was published on April 13 and sent it to me.  I
thought you would find it interesting.

The article focuses on EES in particular and about how we try to succeed by
being first to meet our clients' changing needs.  It also describes how we
use derivatives and risk management to reduce costs and stay competitive.
The article also briefly mentions the new office in Japan.

The most interesting thing about the article is how incredibly positive it is
about Enron.  Given what I have read and heard about how nervous the Japanese
are about deregulation of the industry, I really did not expect such praise.

Denki Shimbun also has a web site at "www.shimbun.denki.or.jp".  They have
small summaries of the important articles of the day (the site, however, is
completely in Japanese).  Another interesting site is
"www.criepi.denken.or.jp", the English home site of Japan's Central Research
Institute of Electric Power Industry (Denryoku Chuo Kenkyuujou).  The site
has many links to other English-language sites related to the power industry
in Japan.

Regards,

Eugenio


that is gonna be me this weekend


Enron announced today that its common stock will now be traded as an Over-the-Counter (OTC) equity security under the symbol "ENRNQ."  This follows a decision by the New York Stock Exchange (NYSE) to file an application to delist Enron's common stock, which means that Enron's common stock and related securities are suspended from trading on the NYSE.  Enron is considering whether to appeal the NYSE's decision.

The NYSE has standard criteria for listing stocks, which can be found on their website at www.nyse.com.  Enron recently fell below the following listing criteria: average closing price of a security less than $1.00 over a consecutive 30 trading-day period.  Quotation service for Enron's stock will now be provided by the National Quotation Bureau, LLC "Pink Sheets."


Whatl is the deal with the guaranty?    They have refused our gty to them ?

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


I just updated the Egan Exchange tickets and my worksheet for Nov and Dec.  I
think we were out of balance by about 10,000 last night - my fault.

---------------------- Forwarded by Chris Germany/HOU/ECT on 11/10/2000 09:28
AM ---------------------------

Chris Germany
11/08/2000 01:41 PM
To: Crystal Hyde/HOU/ECT@ECT, William Kelly/HOU/ECT@ECT, Victor
Lamadrid/HOU/ECT@ECT, Tricia Spence/HOU/ECT@ECT, Lia Halstead/NA/Enron@ENRON,
Jesse Villarreal/HOU/ECT@ECT
cc: Susan W Pereira/HOU/ECT@ECT, Elizabeth L Hernandez/HOU/ECT@ECT, Scott
Goodell/Corp/Enron@ENRON, Judy Townsend/HOU/ECT@ECT
Subject: EGAN Storage

I took the volumes on deal 472520 (CPR Storage) to 0 and moved them to the
following deals.
Crystal, deal 472520 was valued at CGLF IF.

Deal  Comment
473178  Exchange sell for the November Injections
473190  Exchange buy for the December withdrawals.

Susan wants the withdrawal volumes to go into Texas Gas.

Tricia, deal 473190 has the daily withdrawal volumes.  Please set up the Egan
to Texas Gas ticket.

All of my information is on the following worksheet
0:/logistics/capacity/east/NE/Egan_strg_NOV2000.xls if any is interested.

---------------------- Forwarded by Chris Germany/HOU/ECT on 11/08/2000 01:18
PM ---------------------------

Chris Germany
11/07/2000 12:39 PM
To: Crystal Hyde/HOU/ECT@ECT, William Kelly/HOU/ECT@ECT, Victor
Lamadrid/HOU/ECT@ECT, Tricia Spence/HOU/ECT@ECT, Lia Halstead/NA/Enron@ENRON,
Jesse Villarreal/HOU/ECT@ECT
cc: Susan W Pereira/HOU/ECT@ECT, Elizabeth L Hernandez/HOU/ECT@ECT
Subject: EGAN Storage

We are injecting gas into EGAN storage today through Monday, off of Texas Gas
and CGLF.  We will be withdrawing this gas ratably in Dec into Texas Gas.  I
will probably make a mistake or two on my deals because I'm kinda sleepy.

Crystal will help me set up the deals on EGAN.  I am currently using a CPR
Storage deal ticket and I believe that is incorrect.  I will let everyone
know the deal tickets by the end of the day.


Here is the LM 6000 model we have been using.  Lets talk about the projects
Steve is looking to model sometime early this week.  Thanks
Ben
3-7998


Hi.  FYI.  Yesterday a deal was submitted to the California Commission
(without just about everyone in the industry signing) to restructure
Socalgas.  More details to come, but wanted to give a flavor, knowing that
you're actively engaged in negotiations.

Assuming a 10.01.00 approval date by the Commission:
90 days after approval
Windowing process replaced with OFO system
Interstate capacity unbundled for core customers

effective April 2001:
Ability to balance using 3rd party provider
Open season for Socal storage
Secondary market for storage (using Alltrade if want to)
Trade OFO imbalances and imbalance rights (using Alltrade if want to )

effective Octover 2001:
Open season for Socal intrastate capacity
Secondary market for intrastate capacity (using Alltrade if want to)
Pooling at new city gates


Attached is a three page legislative summary of the Commodity Futures
Modernization Act compiled by Chairman Ewing's office.

 <<CEA Summary 12-14.doc>>

Stacy Carey
Director North American Regulatory Policy
International Swaps and Derivatives Association
(202) 457-6545 ph
(703) 256-1833 fax
(917) 543-9622 cell
scarey@isda.org

 - CEA Summary 12-14.doc


Began initial field confirmation of EOTT crude oil tanks and equipment in the
MIdland Region.  Five of the thirteen teams which have EOTT facilites have
been inpsected and appropriate changes made to the database and spreadsheet.

A meeting was held with the Midland field teams which have Title V
facilities, to complete and submit the required annual certifications.  All
Title V locations in the MIdland region were in compliance for this year.

Region IX EPA has made a determination that prior to issuance of the air
permits for the Redrock turbine installation, Transwestern is to conduct an
endangered species survey of C/S's 3 and 4.  A contractor has been contacted
and the surveys will be completed prior to September 15th.   This is not a
new issue, as EPA Region VI, Dallas required consideration of the Endangered
Species Act to be completed at the Luguna C/S, which is on Laguna Indian
Lands.  The Title V permit will not be issued for the Laguna C/S until the
EPA is satisified that endangered species are not a concern.

Preliminary environmental and right of way field data are being provided to
an environmental contractor to initiate a fatal flaw analysis of a proposed
project for Transwestern Pipeline Company.

Continued EOTT crude oil release data collections for forthcoming Sept. 27th
NFL meeting in MIdland.


NYMEX Membership Services
March 19, 2001
Notice # MS-18

SWITCH OF LESSOR

Please be advised that effective with the close of business, March 14, 2001,
the following member(s) will switch their lessor within the Exchange:

John D. Leahy (LAHY-4596)

Members and Member Firms have (10) days from the date of this notice to
advise the Corporate Secretary,s Office of any claims in accordance with Rule
2.51.

Inquiries regarding the above should be addressed to the Member Services
Department (212) 299-2379.

__________________________________________________
Please click on the link below to indicate you have received this
email.

"http://208.206.41.61/email/email_log.cfm?useremail=sara.shackleton@enron.com&
refdoc=(MS-18)"

Note: If you click on the above line and nothing happens, please copy
the text between the quotes, open your internet browser,
paste it into the web site address and press Return.


Stephen Onisko
630 E. 39th Ave.
Eugene, OR 97405
stephen_on@hotmail.com

 Mr. Ken Lay,

I'm writing to urge you to do the right thing and give the millions of dollars you earned from selling Enron stock before the company declared bankruptcy to funds, such as Enron Employee Transition Fund and REACH, that benefit the company's employees who lost their retirement savings.  You must treat the faithful employees of your company at least as well as you've treated yourself.

Many of Enron's employees were financially devastated when your company declared bankruptcy. The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings. Perhaps, through this act of kindness you will obtain some level of forgiveness from the employees and the public.

Sincerely,
Stephen Onisko

Stephen Onisko


---------------------- Forwarded by Hunter S Shively/HOU/ECT on 10/16/2000
09:54 AM ---------------------------

	Invitation
Chairperson: Donna Greif

Start: 10/17/2000 12:30 PM
End: 10/17/2000 01:30 PM

Description: EB3270 - Discuss the Fundamental Group's Issues regarding Order
637 Non-Compliance

This meeting repeats   starting on    (if the date occurs on a weekend the
meeting ).
Meeting Dates:

Colleen Sullivan/HOU/ECT
Rebecca W Cantrell/HOU/ECT
Massimo Marolo/NA/Enron
Chris Gaskill/Corp/Enron
Geoff Storey/HOU/ECT
Hunter S Shively/HOU/ECT
Gary Payne

Detailed description:


Larry,

Attached is the latest version of the Red Rock Mainline Expansion
environmental report.  This should be fairly complete except for a few
pieces of information.  I have listed things I still need below.

Information Needed...
1. Dates of air permit submittals and copies of applications
2. Copies of T&E phone logs and/or written responses
3. Copy of USFS notification and/or phone log
4. Dates of cultural resource surveys, findings (verbal), date when
reports will be ready, copies of any agency responses and/or phone logs
5. Manufacture/model of new units (if different from those given to
air/noise consultants, updates will be needed)
6. Verify whether we need volume of hydro-test water

FYI Donna sent me the new plot plans via e-mail.  I took a look at those and
updated the report accordingly.  I have not heard anything regarding the
soils from the Forest Service.  Minimum checklist requirements only ask for
NRCS mapped soil data.  Scott Patti in our Ft. Collins office happened to be
speaking with one of his FERC contacts on another project and asked about
the issue of no mapped soils.  His contact indicated to him that it would
not be a problem for work within existing facilities.

I will be working remotely tomorrow, but will have access to e-mail and can
be contacted via my cell phone 919-632-6840.  Otherwise, leave me a message
and I will call you to discuss.
Hope all went well with the EPA,

Terry.

 <<Red Rock Expansion ER Draft2.doc>>

**********************************************************************
The information contained in this communication is confidential and
privileged proprietary information intended only for the individual
or entity to whom it is addressed.  Any unauthorized use, distribution,
copying or disclosure of this communication is prohibited.
If you have received this communication in error, please contact the
sender immediately.

It is our policy that e-mails are intended for and should be used for
business purposes only.

This footnote also confirms that this email message has been swept by
MIMEsweeper for the presence of computer viruses.

ENSR
www.ensr.com
postmaster@ensr.com
**********************************************************************

 - Red Rock Expansion ER Draft2.doc


Hi

Just FYI - A collection of racquets is more than just a luxury.  On Friday,
after the matches, I was keen to assert my new found tennis prowess.   I
thought I could do it too.  I was playing like a spring chicken until my
first big overhead.  I set up well, ready to bounce that ball right over
Grant's head.  I thought I was so cool.  Up I  went to find the ball and out
came flying my  racquet.  On the other side of the net.  Cracked.  Everybody
stood to stare to see if it was anger or incompetence that created such a
mess.  I think I better work on that shot.

Tennis on Wed.?

Elizabeth


Review and call for more iterations.

Garrett
39335


if you get a chance to read, this is a great article

Sheri
----- Forwarded by Sheri Thomas/HOU/ECT on 04/09/2001 02:54 PM -----

	Kal Shah
	04/09/2001 12:00 PM

		 To: Dave Samuels/HOU/ECT, Michael Bridges/NA/Enron@ENRON, Bob
Shults/HOU/ECT@ECT, Daniel Diamond/HOU/ECT@ECT, David
Forster/Corp/Enron@Enron, Savita Puthigai/NA/Enron, Amita
Gosalia/LON/ECT@ECT, Paul Goddard/EU/Enron@Enron, Jay Webb/HOU/ECT, Sheri
Thomas/HOU/ECT@ECT, Andy Zipper/Corp/Enron, Louise Kitchen/HOU/ECT@ECT
		 cc:
		 Subject: Forrester Research -- "Net Energy Hits Hypergrowth"

Please go to:

http://www.forrester.com/Research/ThankYou/0,2252,11379,00.html

and download a free copy of a 20 page Forrester Research report about the
future of online wholesale energy trade.  All major industry players and
consultants including EnronOnline were interviewed for this report.

Kal Shah

---------------------- Forwarded by Kal Shah/HOU/ECT on 04/09/2001 12:49 PM
---------------------------

Peter Martin<pmartin@forrester.com> on 04/09/2001 11:20:00 AM
To: <kal.shah@enron.com>
cc:
Subject: Your copy of "Net Energy Hits Hypergrowth"

Thank you for taking the time to speak with us for our April 2001 Net Energy
Hits Hypergrowth Report. Your insights and views were extremely helpful in
shaping the analysis of the Report. The link at the bottom of this email will
bring you to our Web site, where you can download your complimentary copy of
the Report. I hope you will find it helpful, and if you have any questions or
comments please feel free to contact me. Once again, thank you for your time.

Regards,
Peter Martin
Forrester Research
pmartin@forrester.com

http://www.forrester.com/Research/ThankYou/0,2252,11379,00.html

For technical problems, please contact the Forrester Customer Center by
telephone at +1 888/265-7145 (toll-free in the United States and Canada only)
or +1 617/613-5730, Monday-Friday, 8 a.m.-7 p.m. EST.


Hi out there,

Welllllllll !!!

What's the word?

Assume baby is here and you are all kicked back with nothing going on
(chuckle).

When you have time give me a call (again chuckle)

Ken

 - att1.htm


Carey,
Per Scott's request below the following business unit (aka: desk id,
portfolio) was added to Global production and Unify development, test,
production and stage.   Please copy to the other Global environments.
Thanks,
Dick, x3-1489

Updated in Global production environment GCC Code Desc:

P ENT SUBENTI DATA_CD    AP DATA_DESC               CODE_ID
- --- ------- ---------- -- -------------------- ----------
A SIT DESKID  IMCL       A  ENA - IM Cleburne          9273

	From:  Scott Mills                           08/30/2000 08:27 AM

To: Samuel Schott/HOU/ECT@ECT, Richard Elwood/HOU/ECT@ECT, Debbie R
Brackett/HOU/ECT@ECT, Judy Rose/HOU/ECT@ECT, Vanessa
Schulte/Corp/Enron@Enron, David Baumbach/HOU/ECT@ECT, Daren J
Farmer/HOU/ECT@ECT, Dave Nommensen/HOU/ECT@ECT, Donna Greif/HOU/ECT@ECT,
Shawna Johnson/Corp/Enron@ENRON, Russ Severson/HOU/ECT@ECT
cc:
Subject: New Sitara Desk Request

This needs to be available in production by early afternoon.  Sorry for the
short notice.

SRM (x33548)


Scott,

Is there someone else in your group who can get Brent access to the Financial
Trading Agreement Database?
----- Forwarded by Tana Jones/HOU/ECT on 07/21/2000 03:15 PM -----

	Michael Neves
	07/21/2000 03:01 PM

		 To: Tana Jones/HOU/ECT@ECT
		 cc:
		 Subject: I'm out of the office this week.

I will be out of the office from 07/17/2000 until 07/24/2000.

I will be checking email & voice mail regularly, but if you need to contact
me I can be reached by mobile phone at (281)-788-0243.  If it is an
emergency, please contact the Notes Development Group at 3-6929.


Fine.  I still think that any obligation is a mistake.  Just improving a bad market is not going to help.

Make sure that Dan Allegretti is in the loop.  NEPOOL is putting something like this together.

Jim

-----Original Message-----
From: Kingerski, Harry
Sent: Monday, October 08, 2001 9:59 PM
To: Steffes, James D.; Nicolay, Christi L.
Subject: RE: ICAP

I know.  Anyway, the single most important issue from the perspective of Retail seems to be "daily granularity".  We need to be able to adjust our daily obligation based on customer switching patterns.  These can occur at any time.  So any thing that locks in our capacity requirement for a long period of time (months to a year or more) can be a killer.

A specific model we discussed was "operating capacity".  This takes the operating reserves concept and blows it up to a full capacity market equivalent.  ISO administers the market.  Generators commit capacity to energy market or reserve market, but not both.  Long term deals possible as well as real time market.  Lots has to be flushed out but it seems like a viable approach.

Will discuss more on Wednesday.  Have talked briefly with Luiz about this.

-----Original Message-----
From: Steffes, James D.
Sent: Sunday, October 07, 2001 1:08 PM
To: Kingerski, Harry
Subject: RE: ICAP

Harry --

Enron can never take the position that ICAP is good!  I don't know why Stoness is trying to undertake more analysis.  His reasoning that ICAP is "complicated" and we do well at complications is crazy given the EES business model - Enron Direct.

Let me know how it is going.

Jim

-----Original Message-----
From: Kingerski, Harry
Sent: Fri 10/5/2001 9:00 AM
To: Merola, Jeff; Misra, Narsimha
Cc: Nicolay, Christi L.; Steffes, James D.
Subject: FW: ICAP

[Kingerski, Harry]  We can meet today at 2 pm in room 4746 to discuss more about Retail's view of ICAP and related issues.

Scott Stoness' summary of our meeting yesterday with Dale Furrow, his regional leads, and Narsimha Misra:

The gist of the meetings was:

1) Pro ICAP was:

Pragmatically, high energy costs are bad because they delay competition.  ICAP is therefore good because it reduces the high price periods with market intervention.
Pragmatically, ICAP is complicated, and complicated translucent rules favor the bright (Enron).
Mathematically, 2 separate markets - Capacity and Energy - should result in the same outcome.  ie. Energy costs should reduce to exactly offset the increase in demand charges.
Theorectically, if the market expects the government to intervene in the event of high power costs, suppliers will build less capacity than needed.  Given that this is inevitable (government intervention), we might as well intervene now as later.
Theorectically, market failure is probable because small customers are not able to internalize the costs of not hedging, causing them to take more risk than they should.  Given that the customers are not making the right societal decision, we should make it for them

2) Pro Not ICAP was:

Any artificial price determination will distort the market causing inefficiencies.  ie. a fixed ICAP for 12 months will favor a technology available all year round. ie2. ICAP could cause environmental damage by causing CT's to be built instead of Combined Cycle.
ICAP, with market, is complicated which will decrease market efficiencies
Market prices, with financial firm obligations, will result in a continuous balance of supply and demand
Market prices, will result in much more efficiency because they cause more demand side response.

Conclusion:

There was no consensus.  There seemed to be more people on the no ICAP side than the ICAP side.  Basically comes down to i) economics suggests ICAP is inefficient, vs ii) lack of ICAP will damage competition.
We agreed that if ICAP is inevitable, we should advocate, market determined ICAP's
We agreed that, given that this issue is controversial, and that Narshima has the largest interests.  He should head up our response.

Scott


Please meet with Bob Hall in EB32c2 at 10am.

  If for any reason you will not be able to attend, please let me know.

  Thank you,
  Heather Choate, x33278


No, I am going to the monthly Women's Energy luncheon, that has been paid
for.  May be latter in the week.


I will be back Wednesday night.  Please leave me a message if you need
anything. Hope your presentation goes well!
Ben


Hi Sally,

Attached is the approval letter from the National Council BOD for your
chapter's logo product sales at the upcoming convention.  Please let me know
if you have any questions after reading it.

Also, the 2002 National Convention Committee is contemplating allowing
chapter logo product sales on Thursday, April 25, 2002, the day before
convention.  A time for the sale hasn't been specified yet, but would
probably coincide with convention registration and check-in.  I need to know
ASAP if your chapter would be interested in doing this.

Take Care, Kathy Hoyt
              National Council Ways & Means VP

 - Wildflowers Approval Ltr.doc


CONGRATULATIONS ALL WHO PARTICIPATED IN THE SEPTEMBER BIKE COMMUTE CHALLENGE!!!
We had a very successful month - Thanks to all who participated!
TEAMS 1-6 please join us for lunch in MT HOOD 11:30 -12:30 Wednesday October 3rd for our Awards Ceremony.
The Best team will receive Lunch @ Mothers Bistro (by the end of October)
The following Individual Awards will be presented w/ a $25 Gift Certificate:
* Most Trips
* Most Miles
* Best Dressed - (teams vote @ lunch)
* Best Story

Represent Enron @ the Bicycle Hubbub Awards Ceremony:
If you participated in the Bike Commute Challenge - either as an individual or through your workplace - come on down and celebrate our collective accomplishments! More than 185 businesses have registered - we'll have the final results at the HUBBUB on Thursday, October 11th, from 6-8 PM at the Bridgeport Brew Pub, 1313 NW Marshall, Portland. Join other BCC participants for subsidized pizza and see if your workplace won the coveted Second Wind Chimes from Sellwood Cycle Repair for the most bike commutes in September! Children welcome.

** Thanks to Mike Tully and Bob Anderson for the Bike Commute Website!!!!


Looks like this bugger is working. And, yes, I will be there for at least
part of the weekend. Where does the party start?--Dent
----- Original Message -----
From: Jim Glass <jglass@northelginteleport.com>
To: <smu-betas@yahoogroups.com>
Sent: Monday, October 22, 2001 4:52 PM
Subject: Re: [smu-betas] SETI via eWooglin

> Craig - I am here - have to be in Chicago on the 27th. Go OU / beat
Nebraska !
>
> craig_shackleton@amat.com wrote:
>
> > Brothers,
> > It has come to my attention that either our YahooGroup is not working,
> > or you are not communicating.  So this message is a Search for
> > ExtraTerrestial Intelligence among the select Betas that make up this
> > august group. I will even count terrestial intelligence this time.
> >
> > What with Homecoming only 5 days away, we figured there would be some
> > message traffic on eWooglin.
> >
> > Hit reply when you see this message to let me know if there is life
> > out there.
> >
> > -kai-
> > Shack
> >
> >
> > At Homecoming 2000, the BETA TENT had the biggest crowd by far.  Stay
connected and consider a future homecoming BETA reunion.  It's
incredible...forget the 20 years in between...everyone just seems to pick it
up right where they left off years ago.
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
>
>
>
> At Homecoming 2000, the BETA TENT had the biggest crowd by far.  Stay
connected and consider a future homecoming BETA reunion.  It's
incredible...forget the 20 years in between...everyone just seems to pick it
up right where they left off years ago.
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>

------------------------ Yahoo! Groups Sponsor ---------------------~-->
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CLICK HERE to search
600,000 scholarships!
http://us.click.yahoo.com/Pv4pGD/4m7CAA/ySSFAA/Vk9qlB/TM
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At Homecoming 2000, the BETA TENT had the biggest crowd by far.  Stay connected and consider a future homecoming BETA reunion.  It's incredible...forget the 20 years in between...everyone just seems to pick it up right where they left off years ago.

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/


Please restore the below referenced file as requested.  If you have any questions, please
	call me at ext. 3-7637.

 -----Original Message-----
From: 	Bodnar, Michael
Sent:	Monday, December 31, 2001 10:40 AM
To:	Blair, Lynn
Cc:	Cantu, Lupita
Subject:	FW: File Restore Request

Lynn,
After preparing the Storage Summary Sheet this morning I could not save the updated file. In fact the file has disappeared from this solar system. I contacted the Solution Center to have the file restored and was informed that a business reason and director level approval is required before any restoration work can begin.
As for the business reason, as you know, the NNG Marketing Dept uses this sheet daily to monitor storage activity and as a basis for purchase and sales decisions throughout the month. Marketing expects to see this sheet daily. In addition, Finance has requested a copy of the file daily to help track potential imbalance activity on NNG's system.
Lynn, Please forward this e-mail to the Solution Center authorizing the restoration of the file at  \\gthou-dv01\common\mkt\oma\sumdec01.xls so I can continue to support the informational needs of the Marketing and Finance Departments provided by the data in the aforementioned file.
Thanks,
Mike

 -----Original Message-----
From: 	ETS Information Risk Management
Sent:	Monday, December 31, 2001 10:06 AM
To:	Wilkins, Tony
Cc:	ETS Information Risk Management; Bodnar, Michael; ETS Solution Center,; Wagner, Glenda
Subject:	File Restore Request

Mike Bodnar needs a file restored.  It seems that the file got corrupted.  Mike Bodnar's director will send an email to ETS Sol Center requesting the restoration.  Path:  \\gthou-dv01\common\mkt\oma\sumdec01.xls.  Please restore it from 12/28/01 tape backup and restore it to the same location.  A high priority Remedy ticket # 37225 has been opened.

If you have any questions, please call me at x33876

Thanks!
Lupita Cantu
ETS Information Risk Management
713-853-3876


This type of shit always happens to Crowell.
PL

---------------------- Forwarded by Phillip M Love/HOU/ECT on 02/28/2001
03:35 PM ---------------------------

Scott.Crowell@us.cgeyc.com on 02/28/2001 03:08:05 PM
To: GBauer@mtlm.com, drewbeckman@hotmail.com, acaeg@yahoo.com,
jcarlisle@carltonstaffing.com, colirma@yahoo.com, mike.fultz@halliburton.com,
dgiron@enron.com, chad.glessman@bankofamerica.com, bsjones@us.oracle.com,
Dawn.C.Kenne@enron.com, jennifer_kern@yahoo.com,
Crystal_Kettle@neimanmarcus.com, rachellapworth@yahoo.com,
j_liberman@hotmail.com, Phillip.M.Love@enron.com, carriebird69@hotmail.com,
MikeMullen@mail.house.gov, KARENHMUR@aol.com, jnagy@intraspect.com,
charity.naiser@us.pwcglobal.com, PattiS7@aol.com,
srasmussen362@earthlink.net, CRoberson@ASAPSC.COM, yhs_91@yahoo.com,
leslie.salyer@lyondell.com, sassytxn7@aol.com, msherbak@texas.net,
csiddons@comscore.com, whitneysiddons@phoenixdsl.com, rsole@us.oracle.com,
mandy.spencer@hostcentric.com, kc.stevens@ntlworld.com,
Jennifer_Thomas@amsinc.com, mikepthomas@yahoo.com, sheri.thomas@enron.com,
bentsuch@yahoo.com, jtwebb@seagullsw.com, nmw14@yahoo.com, bigluv54@aol.com,
slsdfy@earthlink.net, nateandmichelle@home.com
cc:
Subject: Pics  [CGEY Virus checked]

Here's us in at dinner during Mardi Gras with the New Orleans MTV Real
World cast.

(See attached file: realworld1.jpg)(See attached file: realworld2.jpg)

Scott Crowell
Cap Gemini Ernst & Young Consulting
Senior Consultant - Oracle High Growth

214.665.5751  office
214.543.9093  cellular

______________________________________________________________________
The information contained in this communication is intended solely for the
use of the individual or entity to whom it is addressed and others
authorized to receive it. It may contain confidential or legally privileged
information. If you are not the intended recipient you are hereby notified
that any disclosure, copying, distribution or taking any action in reliance
on the contents of this information is strictly prohibited and may be
unlawful. If you have received this communication in error, please notify
us immediately by responding to this email and then delete it from your
system. Cap Gemini Ernst & Young is neither liable for the proper and
complete transmission of the information contained in this communication
nor for any delay in its receipt.
 - realworld1.jpg
 - realworld2.jpg


You the Man!!

Pipeline contacts

Toni Garcia  713-420-3663  Tennessee/Midwestern/East Tennessee
Stephanie Spencer  713-627-5025 Texas Eastern/Algonquin
Greg Synder  304-623-8268  CNG Transmission
David Schoellkopf 713-215-4625  Transco

I know the CNG person is the right person to talk to but everone else may
refer you to another department.

"Clayton J. Vernon" <cjvernon@mail.utexas.edu> on 02/16/2000 07:34:31 PM
To: chris.germany@enron.com
cc:
Subject: leg

Chris-

(It's Clayton, on my UT account from home)

I may have the perfect girl for you; she's a 29-year old *beauty* in
Ukraine, one of my wife's best-friends, about 5'2" in height, slim,
smart but a bit quiet and introspective, who really wants to meet a
quality guy and get married and have children. She had her heart broken
by her first love, a guy who dumped her for a girl in Kiev whose father
gave the guy a good job. It seems the quality guys, as few as they are,
all want to marry a rich girl and want only money andnot children.

I'll bring a picture of her by your office tomorrow.

One hang-up- she doesn't speak English very well (yet). But, where
there's a will, there's a way.

Clayton


Michael/Janelle,

Attached for your review is the revised Annex B and B-1 for the new deal.

Stephanie Panus


Here is the draft for Woodward.

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


Thank you for volunteering to participate in the Interview Process of the
January 15 Associate Super Saturday.  Our team is working on the weekend
arrangements and will deliver your information packet to you Thursday,
January 15.  If you have any questions, please let Elizabeth Boudreaux know
at x3-6176.

Thank you!
Ginger Gamble
Manager
Associate & Analyst Program


- December 18.pdf
 - November 26- December 16.doc


Thanks for the tip.  Why don't we try to have lunch in early December - I'm going to try and take off the week after Thanksgiving.

Jim

 -----Original Message-----
From: 	doakland@reliant.com@ENRON
Sent:	Thursday, November 15, 2001 4:02 PM
To:	Steffes, James D.; jsteffe%enron@reliantenergy.com
Subject:	Jim

Hi Jim -
I sent Mari an email at home about a position that came up here.  We just
had a guy in our regulatory group leave - his position is much below
anything that you would consider, but given the vacancy, they may be able
to create a higher level position for you.  At this point I am really just
seeing if you would even consider talking to our folks and I haven't
presented it to anyone over here either.  Just thought I would bring it up
considering the situation over there.  If you have some interest maybe we
could set up lunch sometime soon.
By the way congrats on the baby.  Maybe it will be a boy this time.


http://www.consultrci.com

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

Read SCIENTECH's free SourceBook Weekly article: "Power Traders: The Winners
and Losers" at:
http://www.consultrci.com/web/rciweb.nsf/Web+Pages/SBEntrance.html
************************************************************************

===============================================================
SCIENTECH IssueAlert, October 17, 2000
Dynegy Launches B2B Portal and Trading Site
By: Will McNamara, Director, Electric Industry Analysis
===============================================================

Dynegy, Inc. announced the launch of Dynegydirect, an Internet-based,
commission-free
B2B portal and trading site for energy and communications commodities.
Dynegydirect will be introduced to Dynegy customers in a phased-in rollout
that started on Oct. 16, with online trading commencing over the next several
weeks. Through the portal, Dynegy customers will have self-service access
to Dynegy's bid and offer prices across U.S. power, natural gas and
natural-gas
liquids products. U.K power and natural gas, as well as coal, emission
allowances, weather derivatives, international natural-gas liquids, and
bandwidth will be offered in the coming months.

ANALYSIS: This is a major undertaking for Dynegy, but perhaps not very
surprising as the company is following many of its competitors into the
big-league online trading market. Dynegy is following a trail blazed by
the likes of EnronOnline, Entergy, AEP, etc., in establishing a portal
to "enhance liquidity, improve customer control and create greater trading
efficiency." Of the various online trading sites that have been announced,
Dynegydirect appears most similar to EnronOnline*clearly the leader in
the field*because it is principal-based. In other words, Dynegy will be
a participant in all of the transactions, either as a buyer or a seller.
Unlike EnronOnline, which is completely online, Dynegydirect will allow
customers to conduct their transactions with Dynegy over the telephone
during and following the launch of the site.

Over the last year, Dynegy has identified its strategy as wanting to become
a leader in the converging energy and communications business. In addition,
according to Dynegy's CEO Chuck Watson, the company's goal is to gain a
10-percent share (or 70,000 MW) of the U.S. electric market over the next
five years by acquiring plants, building them or negotiating the right
to sell power produced by others. Along with a strident strategy of building
merchant plants in areas where demand is growing significantly, Dynegy
presumably plans to now use its trading portal to market the power it has
either generated itself or bought on the wholesale market.

I spoke late yesterday afternoon with Blake Young, Dynegy's chief information
officer and president of Dynegy Global Technologies, about the new site
and how it will compete against such stiff competition. First, Young said
that Dynegydirect is a "component of a broader strategy" to support Dynegy's
comprehensive electronic business efforts. What this means is that
Dynegydirect
ultimately will be much larger than just a trading portal, including such
other electronic businesses as e-procurement and energy supply chain
management.
The portal will be particularly customer-driven, in that it should provide
many windows of opportunity for Dynegy customers to maximize their management
capabilities.

Dynegy has been planning a trading operation for some time; its growth
as a power generator and marketer has been an indication that Dynegy
recognized
new trends in the energy industry. You may recall that a few months back
Dynegy teamed with Williams in investing $25 million each for minority
equity stakes in eSpeed, Inc. As noted in SCIENTECH's IssueAlert from Sept.
25, eSpeed is investing $2 million in TradeSpark, which plans to create
electronic marketplaces for natural gas, electricity, coal, weather
derivatives,
nitrogen oxide, and sulfur dioxide emission credits. TradeSpark is using
the infrastructure and capabilities of eSpeed. In other words, eSpeed is
TradeSpark's "enabler." As an investor in eSpeed, Dynegy stands to profit
from TradeSpark's pre-launch market valuation of $40 million. At this point,
it is not clear if Dynegy intends for Dynegydirect to be a competitor to
TradeSpark as Dynegy stands to profit from both trading operations.

How does this all relate to Dynegydirect? According to Young, Dynegy is
pursuing commodity trading along two venues. The first is a proprietary,
one-to-many format in which Dynegy will participate in all transactions
as either a buyer or a seller. This operation will be conducted on the
Dynegydirect portal. The second venue is an anonymous, many-to-many format
in which Dynegy will participate along with multiple buyers and sellers.
This operation will take place on TradeSpark, which became operational
in early October. Dynegy is a participating member in TradeSpark along
with Coral Energy, Dominion, Koch Energy Trading, TXU Energy Trading, Williams
Energy Marketing and Trading, and Cantor Fitzgerald. Entergy also plans
to come on board as a member and investor once its venture with Koch closes
later this year.

Other key attributes to Dynegydirect, as identified in the announcement
of the site, are that its "highly configurable floors will enable customers
to group products in a customized fashion for convenient access." In addition,
customers can trade on multiple floors simultaneously, and the site's
real-time
price updates will allow them to see prices on all of their floors, enabling
them to make immediate decisions on prices and volumes.

Young said that Dynegy is extremely confident that the portal's technology
will be "well accepted" as it is JAVA-based (meaning, among other things,
that it is flexible enough to operate between MACs and IBMs) and
object-oriented.
While these are important from an IT perspective, as would be important
to CIO Young, perhaps more importantly is that the site offers an opportunity
for Dynegy to support the growth of its businesses and offers a
cost-efficiency
tool for customers.

In August, Dynegy announced that it is acquiring Extant, a privately held,
Colorado-based communications solutions and e-commerce company. Extant's
primary line of business is in providing connectivity solutions and broadband
capacity to communications businesses and information providers, enabling
them to exchange information and provide voice, data and video services
to their customers. The acquisition will mark Dynegy's first significant
penetration into the telecommunications sector. While not directly related
to this new portal, the acquisition of Extant is relevant because Dynegy
intends to eventually trade broadband capacity on the site. Extant's broadband
capacity will help to support Dynegy's trading of this commodity.

While the move to online trading is a smart, and almost inevitable, decision
for Dynegy and other energy companies wanting to remain competitive, the
competition and risk associated with this venture are formidable. Clearly,
Dynegy has found a market edge with its eSpeed /TradeSpark affiliation.
TradeSpark is already up and running, as compared to many announced trading
sites that have launch dates next year. In addition, TradeSpark is creating
a large liquidity pool by bringing together several mediums, including
the Internet, voice brokering and eSpeed's 300 millisecond private global
network. The many-to-many format which Dynegy is pursuing through TradeSpark
is an obvious route for the company to follow, and one with considerably
less risks associated with it. On the other hand, building its own
Dynegydirect,
in which Dynegy is the principal player, sounds like a Herculean task.
For perspective, Enron was the first company that came out of the gate
with an online energy trading portal. EnronOnline has a 12-month lead*along
with transactions in excess of $100 billion*ahead of Dynegy, or any company
that is just now developing a trading portal. It appears that Dynegy plans
to build Dynegydirect from the ground up, unlike its involvement in
TradeSpark,
which is already up and running. This could become a lengthy and costly
endeavor.

As I finished writing this analysis, Dynegy reported third-quarter earnings
of $.55 per share. In particular, Dynegy reported that recurring net income
from Dynegy Marketing and Trading increased to $141.0 million, representing
80 percent of Dynegy's consolidated net income (compared to $26.8 million
in the third quarter of 1999). Obviously, Dynegy's commodities marketing
and trading operation is on a very significant growth mode. The launch
of Dynegydirect*along with ongoing participation in TradeSpark*is a key
element of this growth.
===============================================================
SCIENTECH can help you find the answers you need. From simple questions
to complex problems, our experts and consultants will get results. Learn
more about our six service areas at:
http://www.consultrci.com/web/rciweb.nsf/Web+Pages/About_RCI.html
===============================================================

SCIENTECH is pleased to provide you with your free, daily IssueAlert. Let
us know if we can help you with in-depth analyses or any other SCIENTECH
information products. If you would like to refer a colleague to receive
our free, daily IssueAlerts, please reply to this email and include their
full name and email address or register directly at:

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Sincerely,

Will McNamara
Director, Electric Industry Analysis
wmcnamara@scientech.com
===============================================================
Feedback regarding SCIENTECH's IssueAlert should be sent to
wmcnamara@scientech.com
===============================================================

SCIENTECH's IssueAlerts are compiled based on independent analysis by
SCIENTECH
consultants.  The opinions expressed in SCIENTECH's IssueAlerts are not
intended to predict financial performance of companies discussed or to
be the basis for investment decisions of any kind.  SCIENTECH's sole purpose
in publishing its IssueAlerts is to offer an independent perspective regarding
the key events occurring in the energy industry, based on its long-standing
reputation as an expert on energy and telecommunications issues.

Copyright 2000.  SCIENTECH, Inc.

If you do not wish to receive any further IssueAlerts from SCIENTECH, please
reply to this message and in the body of the email type "remove."


Judy at EES has different totals for these two deals.  For #498865 at NP15,
she has total volume of 13,319.  For #497869 at SP15 she has a total volume
of 8516.6.  Do you know of any reason that these total volumes would be
different than what EES is showing?

Thanks!


Don,
Attached is the information you requested.  Rick will discuss with you
further when he returns on Monday.


im names
broomtoter
staceybrewer
sallymc11
kolinge

e-mail address
smcelroy@howellcorp.com
susie_lejune@kindermorgan.com

 -----Original Message-----
From: 	Ward, Kim S (Houston)
Sent:	Wednesday, October 31, 2001 10:44 AM
To:	Olinger, Kimberly S.
Subject:

Can you send me sally and susie's email addresses as well as sally, susie, stacy's and your aol IM name?
I had to relog on and it messed my thing up.

thanks,

K2


-----Original Message-----
From:  MWilson@milbank.com@ENRON
[mailto:IMCEANOTES-MWilson+40milbank+2Ecom+40ENRON@ENRON.com]
Sent: Friday, January 12, 2001 3:17 PM
To: Garberding, Michael; ian.james@mourant.com
Cc: philip.levy@chase.com; jeffrey.w.dellapina@chase.com; RWight@milbank.com
Subject: Stoneville/ENAC Margin Agreement

Attached at Chase's request is an initial draft of the Stoneville/ENAC Margin
Agreement for the December 2000 trade.
Regards,
Melanie Wilson Milbank, Tweed, Hadley & McCloy LLP One Chase Manhattan Plaza
New York, NY  10005 ph.: 212-530-5098 fax: 212-530-5219 email:
mwilson@milbank.com
 <<4BKVX03!.DOC>>
This e-mail message may contain legally privileged and/or confidential
information. If you are not the intended recipient(s), or the employee or
agent responsible for delivery of this message to the intended recipient(s),
you are hereby notified that any dissemination, distribution or copying of
this e-mail message is strictly prohibited. If you have received this message
in error, please immediately notify the sender and delete this e-mail message
from your computer.

 - 4BKVX03!.DOC


What was going on in Feb?

D

Clem Cernosek
12/11/2000 04:27 PM
To: Daren J Farmer/HOU/ECT@ECT
cc: Aimee Lannou/HOU/ECT@ECT
Subject: HPL Meter #980074 Bammel HPL D/P to Transco

Daren

During the period of 1/1/99 to 9/30/2000, the above meter has recorded flow
on the following days:

   Days   Mmbtus

 11/12/99            (58)
 12/23/99          (133)
 2/1/00           (463)
 2/2/00           (463)
 2/3/00              (463)
 2/4/00           (463)
 2/5/00           (463)
 2/6/00           (463)
 2/7/00           (463)
 2/8/00           (463)
 2/9/00           (463)
 2/10/00           (463)
 2/11/00           (463)
 2/12/00           (463)
 2/13/00           (463)
 2/14/00                          (463)
 2/15/00           (464)
 2/16/00           (463)
 2/17/00           (463)
 2/18/00           (463)
 2/19/00           (463)
 2/20/00           (463)
 2/21/00           (463)
 2/22/00           (463)
 2/23/00           (463)
 2/24/00           (463)
 2/25/00           (463)
 2/26/00           (463)
 2/27/00           (463)
 2/28/00           (463)
 2/29/00           (464)
 6/28/00               78
 9/14/00                 499

        (13,043)

Currently, these volumes are being booked to HPL Strangers Gas Contract.
Logistics needs approval to writeoff these volumes to Unaccounted for Gas.
If you have any questions, please contact Aimee Lannou @ X-30506.

Thanks,  Clem

PS:

               APPROVAL to Writeoff the volumes to Unaccounted for Gas


---------------------- Forwarded by Steve C Hall/PDX/ECT on 01/17/2001 04:17
PM ---------------------------

<Chris_A_Anderson@calpx.com> on 01/17/2001 04:15:51 PM
To: steve.c.hall@enron.com
cc:

Subject:

(See attached file: EnronCollateral.doc)

 - EnronCollateral.doc


The following article appeared in today's Chronicle.

Jan. 25, 2001, 10:59PM

Enron rating setup irks many workers
By L.M. SIXEL

TONGUES ARE WAGGING at Enron Corp., and it's not because of the bonuses
they're expecting next month.

Employees are irate about a new performance-review ranking system that pits
them against each other.

Under the system, nicknamed "rank and yank," employees will be put in one of
five categories: 5 percent will be identified as "superior," 30 percent will
be labeled "excellent," 30 percent will be called "strong," 20 percent will
be labeled "satisfactory" and 15 percent will be called "needs improvement"
or "issues."

An insider said "needs improvement" means "you have one leg hanging out the
window." And "issues" is Enron lingo for "you're gone."

The rankings, whose names reportedly took Enron officials hours to come up
with, are not based just on performance.

Instead, they compare employee against employee.

"It is possible, therefore, for someone to perform at the same or higher
level compared to prior periods, yet receive a lower rating for the current
period if other employees' performance raised the bar," according to a memo
from Chief of Staff Steven Kean and Executive Vice President Cindy Olson that
was distributed this month.

While employees are competing against each other for ratings, they're also
expected to be team players, according to the memo.

`Horse-trading' of rank denied
The problem, according to someone familiar with the new system, is the
horse-trading that goes on when the rankings are divided up.

Managers trade rankings like baseball cards, explained the insider, offering
to downgrade one employee if they can get a better rating for another
employee.

An employee's ranking is more a function of the negotiating skills of the
manager he is working for, the insider said.

Olson, who's over human resources and community relations, said no
horsetrading is going on. The rankings, due out this week, aren't set in
stone, she said. Only 9 percent of employees were rated in the bottom
category while 6 to 7 percent were labeled superior, she said.

But Olson said she can see how employees might be worried about the prospect
of bargaining.

She speculated that one reason employees might worry is because it's a new
system for about 60 percent of Enron's employees. In years past, only the
wholesale energy services group was ranked this way.

Some human resource managers expressed surprise that Enron, which is known
for hiring superstars, apparently feels that it must get rid of so many
employees -- or at least put them on notice that they're not doing well.

It doesn't say much about the confidence of your recruiting system if you're
getting rid of 10 to 15 percent of your work force each year, said a human
resource manager in Houston who asked to remain anonymous.

Some may not fit in
Some people, as smart and talented as they are, just don't fit into Enron's
culture, Olson said. It's a company that doesn't tell people what to do; you
have to know what adds value, she said. Some folks just have a hard time in
that environment.

After thinking about it for a moment, Olson added that maybe Enron's
recruiters aren't doing a good enough job weeding out the people who wouldn't
do well in an entrepreneurial environment.

Forced ranking systems were popular several years ago. But they fell out of
favor, in part because they were seen as damaging employee motivation.

Several years ago, Houston Lighting & Power put in a forced ranking system,
dividing all employees into four groups, with "1" the top group and "4" the
lowest. Employees were so angry with the system that some work crews had
T-shirts printed: "Don't ask me -- I'm a 3."

Olson said she doesn't see a problem with motivation. People like to know how
they stand and will work hard to reach the top category, she said.

But many of the employees -- at least the ones who rate above satisfactory --
won't know how they're rated. Managers don't have to reveal the ratings.

And as for figuring out what it takes to be superior? You've got to reinvent
your job, add new business lines or create something totally new.

"Employees understand that when it's explained to them," Olson said.

------------------------------------------------------------------------------
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to lm.sixel@chron.com.

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from The Wall Street Journal

Dec. 19, 2001

AT&T struck a deal to merge its cable TV business with Comcast, creating a
cable behemoth with more than 21 million customers and capping a five-month
auction that elicited bids from some of the nation's media and cable titans.

For more information see:
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Hi,

If you're not able to get into Bearfacts for your grades, try the "Change
Your Password" section.

Then proceed to "Current Passphrase."  If you haven't used this before, try
your PIN# or "password."

If that doesn't work, there is a link on the site that says log-in problems
to guide you.

We'll be sending grade letters next week!
Thanks!
TJ


Howdy,

Enjoyed reading about Dad's and Dave's recollections of Macomb.  But why is
Macomb in their pasts?  When was/is the Delaware game?

Things are ok here.  Have lost a bit of respect for the Firm I am working
with; lots of bluff where there should be preparation; dreams of glory
without the sweat.  Still, I am being treated great.  Second newsletter sent
out last week; with Ismail's help (I got him hired to work with me on the
layout, as the in-house guy not really up to par) and the look much much
better this time.  I like a couple of the articles too (note the one on
international arbitration and the micropower revolution), though the
audience for them is probably pretty small.  Will definitely be sending this
one to some editors.

Today a bit blue, and walked down to the Bosphorus for of a dose of
"renenwal" by the water.  Got treated to the last of the day's sun catching
both the tops of the (most ugly, except in sunlight) building's lining the
strait's Asian shore and the sterns (right Dad?) of huge tankers heading for
the Black Sea.  Because its Ramazon, and sunset is when everyone breaks
their fasts, I had the quay mostly to myself.  About a mile up the Bosphorus
is a huge suspension bridge, and between its towers was a huge rising full
moon.  Nice scene.

What's up with you all?  Tomorrow is the presenation to our most important
client, Turkcell (on the NYSE).  Is a Power-Point Presentation, the modern
version of a slide show, with audio.  I wrote it and recorded it.
Unfortunatlely, radio vocies don't seem to be inherited traits.  (Indeed, I
do recall Tom working to train his for hours and hours; nothing biological
about that, just hard work.)  Tomorrow night its off to Georgia again, where
I have a little work to do and will (the main purpose for the trip) pick up
my work visa.  (Will stay a few days, despite not having that much work to
do there, and do a bit of sightseeing; might not get there that often in the
future, as once again the Russian's seem to have less than honorable designs
on the place.) Upon my return to Istanbul, the work visa should be followed
in a couple of weeks by my residence permit, at which point I will be legal.
  No more touris visa run every three months!

More later.  Look forward to some new news.

Yours with love,

Mark

>From: TOMSKILLJR@aol.com
>To: DES883781@aol.com
>CC: markskilling@hotmail.com
>Subject: (no subject)
>Date: Mon, 27 Nov 2000 17:04:06 EST
>
>Hi Dave and Mark;  I will give you both a report on my trip to Western
>Illinois U for the Lehigh football game.  The weather was clear and
>beautiful
>Friday for my trip to Macomb.  Dave I took a ride thru the Knox Campus and
>because it was Thanksgiving Weekend I didn't see a sole.  The Campus looked
>good and they did a super job in keeping up the old buildings.  In fact I
>thought the whole town looked good--- a real well kept Illinois
>agricultural
>town.
>        The same was true of Macomb.  WIU has close 12,000 students and has
>a
>rather large modern campus.  The Lehigh Plane had to land in Peoria and
>team
>and party came over in three buses.  There were about 60 of the team,  10
>Alumni,  A mini-band of 22 and the rest (approx 40) were school officials
>and
>press.  It was neat in that the group was small enough I met everyone.
>Lehigh was the only undefeated team in the NCAA Class 1-AA  but since there
>was not much respect for Lehigh in that they came from the Patriot League
>therefore they did not get a home game and  had to come take part in what
>was
>considered a secondary game.  I could tell there was some "Mad Lehigh"
>people.  On top of that some of the WIU players made  some comments in the
>pregame warmup to the fact Lehigh was not playing in the Patriot League
>today
>      By the time WIU got their first "first down"  Lehigh had scored 20
>points.  The haftime score was 30-7.  A hard drizzle and Lehigh only scored
>on touchdown the second half for a final score of 37-7.  Lehigh completely
>dominated every aspect of the game.  I had never seen Lehigh play a better
>game.
>      I am flying East to see the next game with the University of
>Delaware.
>We have played them many times and both teams will be taking this game
>seriously.  Cross your fingers for us.    Tom and DAD
>

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Rod:
Here are their credit issues:

1. In the cross-default language that want to add language that basically
says that even if a cross-default occurs, unless the Non-Defaulting
determines in good faith that performance by the Defaulting Party of its
obligations under the Master is "endangered", then no cross default is
triggered.

2. In Credit Event Upon Merger we had commented that instaed of the
"materially weaker" standard we wanted to specify that it meant being rated
below BBB- by S&P.  Do you feel strongly about this?  Alos, we usually have
language that says that if an event like merger occurs and the transferee
provides collateral to the other party in an amount that is satisfactory to
such party, then a Credit Event Upon Merger is not triggered.  They did not
want to add this carve-out.  Are you okay with this?

3. They want a separate Event of Default that gets triggered if a MAC (below
BBB-) occurs.  We requested that it be out in the collateral threshold
language.

4. They are saying that for "operational" purposes, they cannot agree to
"netting".

5. They want as a category of Eligible Collateral governmental securities
with a maturity of less than 1 year, valued at 98%.

6. In the CSA, if a dispute occurs with respect to either the calculation of
Exposure or the calculation of the value of any colateral in connection with
a party's request either for the transfer or return of collateral, normally
the following procedures apply:

a. the disputing party notifies the other party of the nature of the dispute
by the close of business on the day following the day that the collateral
request was made.

b. the undisputed amount is transferred to the party making the request

c. the parties attempt to resolve the dispute by the "Resolution Time" and if
a resolution is not reached, a recalculation of the Exposure is made and
market quotations have to be obtained.

We normally say that the Resolution Time is 3 Business Days after the dispute
notice is given.  DB wants to shorten this period to 1 Business Day after the
dispute notice is given which gives the parties less time to resolve the
dispute on their own.  What do you think?

7. If a party holds cash as collateral, we normally say that interest earned
is transferred on the first day of the month.  They want to change first to
last.

Let me know what you think.  I was hoping that some of these you could
resolve with your counterpart at DB.

Carol


I was thinking about you and just wanted to check to make sure you're o.k.

Carolyn H. Ashley
Training & Development Manager
Port of Houston Authority
Phone:  (713) 670-2619
Fax:  (713) 670-2457
E-mail:  cashley@poha.com


Ladies & Gentlemen,

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