Must have had an old address-- the message came back and I am resending.
Already sent to Nancy and Steve.

Debbie

Content-Transfer-Encoding: 7bit
Return-path: Dasovichd@aol.com
From: Dasovichd@aol.com
Full-name: Dasovichd
Message-ID: <db.11116a8.25d59710@aol.com>
Date: Fri, 11 Feb 2000 11:47:12 EST
Subject: Cruise update--decision time
To: charryl@pacbell.net, rrf_gibson@marad.dot.gov, jdasovi@ect.enron.com,
dasovich@inhale.com
MIME-Version: 1.0
Content-Type: text/plain; charset="US-ASCII"
X-Mailer: AOL 4.0 for Windows 95 sub 38

Hello everyone,

After much research and some delay, I have the info that I think will work
well for Mom and Dad.  I tried to combine a NICE cruise (good food,
accommodation, itinerary) with cost.

Here's what I have come up with:

Princess Cruises
Dawn Princess (ship), July 17 departure, 7 night cruise
Vancouver-Inside passage-Ketchikan-Juneau-Skagway-Glacier Bay-College Fjord
crossing-Seward(Anchorage)
Outside room with balcony
$2555.45/per person

I also think that they should spend a day in Vancouver before the cruise.
That adds $258/night (I think they should stay 2 nights--they fly up
Saturday, have Saturday night and Sunday, board the ship on Monday).  The
somewhat high price is because they stay at either the Four Seasons or Sutton
Place.

The total is $6026 or $1506 for each of us (if I did the math right--check
it).  This price includes airfare, port charges, all food etc on board. It
doesn't include alcohol or sodas on board, any excursions taken in port
(sightseeing tours), tips for cabin steward, waiter and busboy (about $200
for the trip). So we could also throw in a few hundred dollars of mad money.

This price ($2555.45 per person with the hotel in Vancouver) is really
great--they are doing some kind of special.  Holland America is much more and
a comparable cruise with no balcony is $2440).

I have a reservation for them which is good until Monday.  There is a $500
deposit required with the balance due 60 days before departure.

Let me know what you think--comments, etc.

Debbie


Jeff--I just today had a chance to review this document.  If you're still
looking for comments I have one suggestion.

Under section 1 you list the problem and then the solution and then use the
heading "Don't make matters worse".  If you could somehow highlight that
section--make it stand out more.  The folks that you are trying to
reach--business leaders---understand capital markets and how all of the
rhetoric and investigations and allegations can discourage investment.

I would like to be able to send this document when you get it finished to
some of our contacts in the gov's offices--ok with you?

Lastly, I love the chart on growth.

	Jeff Dasovich
	Sent by: Jeff Dasovich
	05/14/2001 12:08 PM

		 To: skean@enron.com, Richard Shapiro/NA/Enron@Enron, James D
Steffes/NA/Enron@Enron, Alan Comnes/Enron@EnronXGate, Karen
Denne/Corp/Enron@ENRON, Janel Guerrero/Corp/Enron@Enron, Susan J
Mara/NA/Enron@ENRON, Sandra McCubbin/NA/Enron@Enron, Paul
Kaufman/Enron@EnronXGate, Susan M Landwehr/NA/Enron@Enron, Linda
Robertson/NA/Enron@ENRON, Tom Briggs/NA/Enron@Enron, Joe
Hartsoe/Corp/Enron@ENRON, Leslie Lawner/NA/Enron@Enron, Harry
Kingerski/NA/Enron@Enron, Jennifer Thome/NA/Enron@Enron, Robert
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: Backgrounder for McNealy

Greetings:
As folks heard, Ken Lay met with some California CEOs last Friday back East.
As a result of that meeting, McNealy, CEO for Sun, asked for some background
and more detail on what Ken Lay proposed as a solution for California during
his meetings in California over the past couple of weeks.  McNealy and others
have expressed a willingness to make phone calls to policymakers, etc. to try
to advance the ball.

I pulled this together very hastily on Friday and take responsibility for all
errors, omissions, ramblings, etc.  Wanted to distribute, however, to make
sure that all had the info that is getting distributed.  Know folks are busy,
but this will likely get distributed to other CEOs this week, so any
comments, suggestions, etc. about how to improve are welcome and appreciated.

Best,
Jeff


---------------------- Forwarded by Steven P South/HOU/ECT on 10/17/2000
12:01 PM ---------------------------

cwduke@duke-energy.com on 10/09/2000 12:31:44 PM
To: steven.p.south@enron.com
cc:
Subject: opal gas day 10

Of the 45,000 we sold 22,000 was not able to get scheduled by the timely
nom.  With problems at Kemmerer, this volume is vulnerable to cuts.  Any
more thought on how this problem can be resolved?


Hi Gregg,

I was out of the office on Friday, so I just now heard your voice mail.  I
haven't been through all my email, but I haven't seen anything from Stephanie
on email.  I do have a hard copy version which is too long to fax with
confidence.  I'll give the forms a look, and fax them your way with some type
of disclaimer for Peoples benefit.

Kay

	From:  Gregg Penman                           09/22/2000 03:09 PM

To: Kay Mann/Corp/Enron@Enron
cc:

Subject: ISDA Forms

Kay - Can I get these documents from you to forward to Peoples or are there
other concerns?

Thanks,

Gregg
---------------------- Forwarded by Gregg Penman/Corp/Enron on 09/22/2000
03:07 PM ---------------------------

Stephanie Panus
09/22/2000 02:57 PM
To: Gregg Penman/Corp/Enron@Enron
cc:
Subject: ISDA Forms

Gregg -

I have provided Kay Mann with forms for the Schedule to the ISDA Master
Agreement and Paragraph 13 to the Credit Support Annex for both US
corporations and municipalities.

Stephanie


Please note, the starting time for today's Legal Team meeting has changed from 5:00 p.m. to 6:00 p.m. (CST).  The meeting will take place in either EB3321 or EB3328.

Thank you.

Janette Elbertson
on behalf of Mark Haedicke
Enron Wholesale Services
Legal Department
Telephone:  (713) 853-7906
Fax:  (713) 646-2600
e-mail:  janette.elbertson@enron.com


US Govt. data -

 Business inventories rose 0.9% in June, exceeding analysts' expectations
of a 0.6% rise and matching the revised May figure. Retailers saw the
biggest increase; their inventories rose 1.2% in June. Total business sales
were also up 0.9% in June, a slightly weaker showing than the revised 1.1%
rise posted in May. The inventory-to-sales ratio--the number of months it
would take to empty the nation's warehouses, store shelves, and sales lots
at the current rate of sales--remained at 1.32, just off its all-time low.
In a separate report, the Fed said industrial production rose 0.4% in July,
double the pace in June. Industrial production, which measures output at
U.S. factories, utilities, and mines, is now 5.8% stronger than it was this
time last year, due mainly to continued growth in high-tech manufacturing.
>


Please review and send if okay.


Thanks.

 -----Original Message-----
From: 	White, Stacey W.
Sent:	Wednesday, February 06, 2002 2:25 PM
To:	Reeves, Kathy; Dahlke, Andrea; Evans, Casey; Lewis,  Jon Paul; Vinson, Donald Wayne; Chang, Fran; Dunton, Heather; Postlethwaite, John
Subject:	EnPower Set Up

In order to point to the UBS environment in EnPower you need to change your PortCalc Host to the following.  This screen is reached through Tools - Option Environment.  Also, copy the PortCalc Host into your FTP Host:

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

Let me know if you have any questions.

Stacey


From:  David W Delainey                           10/06/2000 12:32 PM

Sent by: Kay Chapman
To: John J Lavorato/Corp/Enron@Enron, Janet R Dietrich/HOU/ECT@ECT, Kevin M
Presto/HOU/ECT@ECT, Edward D Baughman/HOU/ECT@ECT, Fletcher J
Sturm/HOU/ECT@ECT, Jeffery Ader/HOU/ECT@ECT, Ozzie Pagan/HOU/ECT@ECT, Rogers
Herndon/HOU/ECT@ect, Bruce Sukaly/Corp/Enron@Enron, Dana Davis/HOU/ECT@ECT,
Ben Jacoby/HOU/ECT@ECT, Lloyd Will/HOU/ECT@ECT, Doug
Gilbert-Smith/Corp/Enron@ENRON, Berney C Aucoin/HOU/ECT@ECT, Mitch
Robinson/Corp/Enron@Enron
cc: Kimberly Hillis/HOU/ECT@ect, Christy Chapman/HOU/ECT@ECT, Felicia
Doan/HOU/ECT@ECT, Tamara Jae Black/HOU/ECT@ECT, Claudette Harvey/HOU/ECT@ect,
Shelby Malkemes/Corp/Enron@ENRON, Chaun Roberts/NA/Enron@Enron, Kay
Chapman/HOU/ECT@ECT
Subject: Strategy Meeting

Dave would like to have a strategy meeting next Tuesday  Ocotober 10, 2000
from 2:30-4:30 in room 30C1. No preparation is necessary and it's important
that each of you plan to attend. If you cannot attend, please contact Dave
directly.

Thanks!


I just want to inform everybody that we are going to start trading with a new counter party called Seaport Group.  The employees of the counter party use to work for Amroc, which is an outfit we frequently traded with in the past.  The company is new but not the people at the organization.  If you have any question, please call.

Paul Pizzolato


Vasant-

I hope you had a wonderful vacation back home, and are rested and recovered
from the long flight back.

I wanted to give you an update of the EOL project, the Gas Model, and of my
intentions here at Enron.

Software (in compiled C on the Unix platform) has been developed and debugged
to listen to the EOL trades, process them, book them, and file them away. In
addition, software has been developed and debugged to mark these to market on
a continual basis, and to store the entirety of open positions on EOL in a
dynamic matrix facilitating analysis. IT has yet to get back with me on how
the software can be informed of those trades ultimately rejected for credit
purposes.

These data files are stored in a format for reading by Excel or by SAS, for
which I have written the data step program and basic tabulation routines
elucidating the structure of the data.

I am in the process of documenting all of this for you.

With regards the Gas Model and its slow performance on the Compaq, Dell has
agreed to loan me one of their competing machines to the Compaq, to see if
the performance issue of the LP is related to the Compaq. I have been
researching this issue with IT here and with Compaq and Dell. The new machine
will be here any day now (no financial obligation to anyone), and I will be
able to immediately ascertain whether the problem the model is having is
Compaq-specific.

I am also in the process of documenting the Gas Model for you.

I've tried to do my best for you, Vasant, but I have been frustrated by not
only the death of my mother but some internal systems in IT here. Just the
other day, SAS could not open a full query of the EOL database because there
wasn't enough free space on the server's hard drive for the workfiles. In
discussing some of these issues with some good friends of mine in power
trading, people whom I have known for over 10 years, they indicated they were
ubiquitous here. The power traders have similar PC's to my new one, and they
have complained from Day 1 that theirs are slower than their old ones.  Also,
there remains a large frustration with the development of data warehouses;
during my brief tenure here IT has gone through two differing proposals as to
how to address this. When I have been told of tools available for real-time
data harvesting, my requests for such have typically been met with "well, we
have it, but we haven't really tested it yet." An example is the weather: we
still do not record to disk the hourly NWS observations from the GOES
satellite.

My interests here are to help Enron to do well, because I will do well only
if Enron does well. These aren't empty words- my IRA is 100% invested in the
Enron stock fund. I believe my best contributions to Enron will be in the
areas of systems as well as modeling, and the difficulty working in the
Research Group, in terms of systems development, is that, frankly, few people
at Enron seem to care what a researcher thinks about our systems. We aren't
directly generating revenues for Enron, and we aren't really their customers,
except in our relatively small deparrtmental infrastructure expenses.

As it happens, Power Trading posted an opening for a Modeling and Forecasting
person, and I spoke with them and they asked me to take the job, reporting to
George Hopley. It is a wonderful opportunity for me, Vasant, as they are
interested in large system modelng of power grids as well as improving their
traders' access to real-time fundamentals data. I was completely candid with
Kevin Presto regarding my shortcomings here in Research- I told him you were
disgusted with me because I repeatedly failed to meet time deadlines. They
also understand I have yet to be at Enron for 1 year, and thus may only bid
on a job with your permission. We agree the move is good for Enron; we all
work for Enron, and your acquiescence to the move does not endorse it but
merely permit it. They are comfortable with me- they have known me for years
as a hard worker, honest and unpretensive. They have already ordered a
state-of-the-art Unix workstation and server for me, and they have told me
they will commit whatever resources are necessary for me to be successful,
including hiring an Analyst to work for me. And, I have already been able to
teach their analysts improved techniques for data harvesting and analysis I
have learned here.

So, I am requesting your permission to bid for this job opening. It would be
a lateral move in position and salary, and I would commit to you to help you
in any way possible in the future with regards the Gas Model or the EOL
database. I will continue to work on their improvement, and complete their
documentation.

As it happens, I am away on Enron business in Portland Monday and Tuesday,
and will be back Wednesday. I had wanted to talk face-to-face instead of by
email, but Enron business supercedes- I am on a team designing the data
warehouse for floor trader support.

Clayton.


Thank you very much for your help.

Kim Melodick@ECT
10/16/2000 02:38 PM
To: Clint Dean/Corp/Enron@Enron
cc:

Subject: vacation balance

Just a note of follow up.  The employee sevice center informs me that
corporate is working on your vacation balance adjustment.  Hopefully, we will
hear that the correction has been made in the next day or two.


CC list suppressed...
WSJ:Cal impact on US economy...
Note:  The other article in the Journal hi-lights the
Governor's bail-out of the Utilities with new bonds,
however the following article spells out wider ranging
problems seen in the stock market last week.  Finally
MSNBC had a January 5, 2001 morning story that before the
end of Jan. 2001 FERC will force the sale of all
transmission assets in California to a third party. This
industry continues to get more interesting...

January 8, 2001

The Outlook

LOS ANGELES

Helmut Ackermann founded L.A. Dye & Print Works Inc. 18
years ago, when he took over a bankrupt dye house. Today,
thanks to California's worsening energy crisis, L.A. Dye &
Print is back on the brink of closure.

Mr. Ackermann depends on natural gas to operate the
massive boilers and heaters used to color and dry fabrics.
He expects his December gas bill to have jumped to
$600,000 from $132,000 last January. Hammered by the
soaring costs, he has already closed one plant and
dismissed 40 people. Now, he says the jobs of his
remaining 660 workers are in jeopardy. "If it stays the
way it is, we won't be around very long," Mr. Ackermann
says.

Stories like this are causing economists to worry that
California's economic troubles -- the energy crisis,
combined with a high-tech shakeout and growing labor
unrest in the entertainment industry -- could put more
drag on a U.S. economy that is already downshifting.
Chart: California and the World Economy

The World's largest economies by gross national product,
in trillions of US dollars:
US                      $8.4
Japan                   $4.1
Germany                 $2.1
France                  $1.4
UK                      $1.3
California              $1.2
Italy                   $1.1
China                   $1.0
Source: World Bank

The energy mess is "one more negative added to the mix,"
says Tom Lieser, a senior economist at the University of
California at Los Angeles's Anderson Business Forecast. He
expects California to navigate its way through the
immediate crisis but worries about its longer-term impact.
Questions about the reliability and cost of the state's
power supply, for example, could threaten continued growth
of vital industries such as technology.

Some Wall Street economists worry that California's
problems could spill over and hurt the broader U.S.
economy. In a report titled "California Unplugged -- A
Drag on Global Growth?" Morgan Stanley Dean Witter warns
that California's energy crisis threatens to push up
production costs and make U.S. exports from the state,
which totaled $102.9 billion in 1999, less competitive on
world markets.

"Negatives tend to snowball, so what is happening in
California has the potential to exacerbate the weakness we
already are seeing in the U.S. economy," says Joseph
Quinlan, a Morgan Stanley economist.

Other states facing economic and financial trouble
wouldn't warrant such attention. But California not only
is the nation's largest state in terms of both population
and economic heft, but the Golden State also seemed to
epitomize the New Economy. Job growth in the state has
been double that in the nation as a whole; of the 2.1
million jobs created in the U.S. during the first 11
months of last year, one of every five new hires was in
California. The state produced more than $1.2 trillion in
output in 1999, making it the sixth-largest economy in the
world, slightly smaller than the economy of the United
Kingdom and a little bigger than that of Italy. The
state's economic output contributed about 12% of total
U.S. gross domestic product. New York, in second place,
had an 8.1% share of GDP.

But soaring energy costs are beginning to take a toll on
the Golden State, and low-end manufacturers are among the
first to see the change. "It is forcing many of us to face
a shutdown," says Scott Edwards, president of the
Association of Textile Dyers, Printers and Finishers of
Southern California. His industry runs on gross profit
margins of 10% to 15%, hardly enough to handle the
fivefold increase in natural-gas costs that many operators
have witnessed.

Soaring energy prices also are hurting California's
agricultural industry. "We can't pass along the costs of
production" as some other industries do, says Heather
Flower, a spokeswoman for the Western Growers Association,
a group of 3,500 growers in California and Arizona. Some
are cutting back on plantings of broccoli, lettuce and
strawberries, among other crops, because of uncertainty
about costs.

Electricity prices already are on the march. The state's
largest utilities, Pacific Gas & Electric Co. and Southern
California Edison Co., received temporary rate increases
last week ranging from 9% for residential customers to 15%
for large companies. Some economists say the rises, if
they become permanent, could wipe out a large chunk of
per-capita-income gains and result in less consumer
spending.

On top of the energy problems, Hollywood is bracing for a
strike by the Writers Guild of America and the unions
representing film and television actors, whose contracts
are set to expire this year. The studios spent the end of
2000 jamming in production to cushion the impact of a
potential strike. The sector employs nearly 300,000 people
in the state.

While there seems little doubt that the troubles brewing
in California will prove painful, there are reasons to
believe the state can still avert an outright economic
contraction. Its economy is more diversified and resilient
than a decade ago, when national-defense cutbacks and an
overbuilt property market crippled the local economy. Back
then, jobs in the aerospace sector shrank by 70%, and
office-vacancy rates in major markets soared.

Also, despite all the attention being given to the state's
energy crisis, the fact is "we're not a very
energy-intensive economy," says Ted Gibson, chief state
economist with California's department of finance. He
notes that the state ranks 48th among the 50 states in
per-capita energy consumption. And he adds that the $11
billion in deficit spending racked up by the two big
utilities amounts to less than 1% of state output. "It's
not the kind of cost that will bring the state to its
knees," he says.

-- Jon Hilsenrath and Rhonda L. Rundle

Write to Jon Hilsenrath at jon.hilsenrath@wsj.com and
Rhonda L. Rundle at rhonda.rundle@wsj.com


What do we need to know to make EBS a successful business?

We need to identify 5 to 10 critical issues in order to help M.I.T. professor
Gabriel Bitran get his students focused on areas of interest to EBS.

Your suggestions for interesting and useful research topics are due by next
Wednesday morning, May 31.   Tom Gros will then forward the topics to
professor Bitran.

Stinson

P.S.

I really need your help on this.


All,

Attached is a presentation that I have put together to review EGM's
activities.  The purpose is to provide an information package on our
businesses for Senior mgt and Investor relations.  This will not be
distributed externally but will education people on our businesses and some
of our goals.

Please take a few minutes to briefly  review and make any comments and/or
changes and fax  or provide a hard copy back to me.  You can send me copies
of just the pages that have updates.  Also please focus on the map and insure
that there are not mistakes ( i found some recently).  There is also a
shorter version presentation that is more external and once I've updated
both, i will send everyone a copy via email for your reference and use.

Thanks,
mike


Please disregard previous e-mails regarding the EES Mailing List. Instead of spending time typing out a lengthy distribution list, simply send the Real Time sheet to EES POWER SETTLEMENTS and it will reach all the relevant people.

As always, let me know if you have questions.

Thanks,
Kate


Jacques,

The assets and liabilities that we are willing to assume are listed below:

Assets:

Land
Preliminary Architecture Design-Kipp Flores Architects
Preliminary Engineering-Cuatro Consultants, Ltd.
Soils Study-Kohutek Engineering & Testing, Inc.
Appraisal-Atrium Real Estate Services

Liabilities:

Note to Phillip Allen
Outstanding Invoices to Kipp Flores, Cuatro, and Kohutek

Additional Consideration or Concessions

Forgive interest due
Reimburse $3,500 for appraisal and $2,375 for partial payment to engineer

Let me know if you need more detail.

Phillip


CALENDAR ENTRY:	APPOINTMENT

Description:
	UAF mtg - John Attend

Date:		10/26/2000
Time:		1:30 PM - 3:00 PM (Central Standard Time)

Chairperson:	Outlook Migration Team

Detailed Description:


FYI

1-2 days is optimistic, but we have core value of optimism!

- - - Mike

---------------------- Forwarded by Mike A Roberts/HOU/ECT on 10/09/2000
02:26 PM ---------------------------

Chonawee Supatgiat@ENRON
10/09/2000 12:16 PM
To: Mike A Roberts/HOU/ECT@ECT
cc:
Subject: progress

Mike,
Doug, an IT guy, asked around and he could not find any software that can do
the job.
I am still working on the code. The program should be ready in 1-2 days.
-chonawee


Recommendations based on job group, mid-year performance and 2000 suggested bonus matrix.  Those highlighted in orange were prorated.  Sorted by job group to compare like positions.  Password is the same.  Let me know if you need edits.  Sorry I did not send last week.


Wall Street Journal, July 17, 2001 Hurt by Deregulation of Utilities,
???California Gives Itself Lead Role By REBECCA SMITH and JOHN R. EMSHWILLER

Copley News Service, July 17, 2001, Tuesday, State and regional, 289 words,
????Davis dedicates 1st of 10 peaker plants; facility was built in 90 days,
????Kristen Green, SAN DIEGO

Copley News Service, July 17, 2001, Tuesday, State and regional, 1351 words
????, Edison rescue plan is facing an overhaul, Ed Mendel, SACRAMENTO

Los Angeles Times, July 17, 2001 Tuesday, Home Edition, Page 7, 710 words,
????The State; ; No Accord Near on Edison Rescue; Legislature: With Davis'
????proposal languishing and rival versions being crafted, the issue continues
????to be divisive., MIGUEL BUSTILLO, TIMES STAFF WRITER, SACRAMENTO

Los Angeles Times, July 17, 2001 Tuesday, Home Edition, Page 7, 1204 words,
????The State; ; Consultants' Stock Buys Questioned; Energy: State official
????urges conflict of interest probe into purchases of shares in power firms.,
????JEFFREY L. RABIN, ERIC BAILEY, TIMES STAFF WRITERS

Los Angeles Times, July 17, 2001 Tuesday, Home Edition, Page 6, 820 words,
????The Region; ; Churches Send Forth Word on Energy Savings; Power: Edison
????calls on them to help spread the news of state-mandated discounts for
????low-income customers. Many have signed up, the firm says., WILLIAM
LOBDELL,
????TIMES STAFF WRITER

Los Angeles Times, July 17, 2001 Tuesday, Home Edition, Page 14, 970 words,
????THE NATION; ; In Support of Energy Plan, White House Burns Some Gas;
????Politics: Cheney, other Bush officials fan out to make what the president
????admits is a tough case., MEGAN GARVEY, TIMES STAFF WRITER, MONROEVILLE,
Pa.

The San Francisco Chronicle, JULY 17, 2001, TUESDAY,, FINAL EDITION, NEWS;,
????Pg. A5, 555 words, Consumers await word on rates; ???Report's delay,
????government bond issue raise questions about electricity price increase,
????Christian Berthelsen

July 17, 2001 ????
Hurt by Deregulation of Utilities,
California Gives Itself Lead Role
By REBECCA SMITH and JOHN R. EMSHWILLER
Staff Reporters of THE WALL STREET JOURNAL

SACRAMENTO, Calif. -- In a video made for a political roast, Gov. Gray Davis,
mimicking the Mafia boss in "The Sopranos," complains to his therapist about
Texas bad guys pushing electricity prices sky high. He vows to get tough.
Soon, a Davis confederate ushers four men in 10-gallon hats into an office,
shots ring out, and the aide, emerging blood-spattered, delivers the
punch-line: "Tell the governor his Reliant problem is solved."

While Gov. Davis hasn't gone that far in his fight with suppliers such as
Houston-based Reliant Energy Inc., he is in other ways trying to blast his
way out of the crisis. His moves are coming in rapid succession after months
of criticism of the governor for inaction, and they are fast reshaping the
state's electricity system.

With the acquiescence of other state leaders, Gov. Davis has put California
on the road to creating what amounts to a mammoth state-owned electric
utility, answerable largely to the governor. Moreover, though designed to
solve a short-term emergency, the governor's policies are loading consumers
with obligations that could affect the economy of the most-populous state for
15 to 20 years.

His actions in some ways hark back to the system of central control that
preceded the disastrous 1996 foray into utility deregulation. But they aren't
simply a return to the days of monopoly utilities strictly regulated by the
state's Public Utilities Commission. What is emerging now is a California
power colossus that operates in important ways beyond the reach of regulators
or the public.

Mr. Davis says his actions will ensure that Californians have a secure supply
of reasonably priced electricity. "This is not a power grab," the Democratic
governor says in an interview. "I had no desire to intervene. I would get out
tomorrow if you would let me out. This is my least-favorite thing to do."

'Colossal Failure'

Yet in the past six months, pushed by what he calls the "colossal failure" of
a deregulation plan hatched under his Republican predecessor, the governor
has put the state deep into the power business. In January, Mr. Davis ordered
the state Department of Water Resources to begin buying power in place of
California's cash-strapped utilities. Since then, the state has purchased or
committed to purchase $45 billion to $50 billion of electricity, with some
contracts as long as 20 years.

The governor has in effect seized control of the state's electricity-grid
operator, the California Independent System Operator, installing his
hand-picked team as board members. As its name implies, the ISO was supposed
to manage the grid without favoring any one participant.

Mr. Davis also is pushing to have the state buy huge chunks of the
transmission system that are owned by the financially beleaguered utilities.
He recently signed into law a bill that creates a state power authority,
whose director will be appointed by the governor. This agency, which so far
exists just on paper, could be used to build power plants and help run a
state-owned transmission system. Mr. Davis says that the authority is part of
what he sees as a "hybrid" system where public power plays an important role
augmenting private enterprise in the electricity business.

Reviving the Utilities

Having healthy utilities is extremely important, says the governor. He adds
that he has been working hard to revive the state's two biggest utilities,
the Pacific Gas & Electric Co. unit of PG&E Corp. and the Southern California
Edison Co. subsidiary of Edison International. But as the state's role in the
electricity business has grown, the utilities don't seem as essential as they
once did.

This is one reason the governor has had difficulty getting a rescue package
for Edison through the state legislature. The plan, among other things, calls
for the state to buy Edison's transmission system for $2.76 billion and
envisions the utility eventually resuming some power-buying chores. Talks
over a similar rescue package for Pacific Gas failed and that utility filed
for bankruptcy-law protection.

With the state locking up so much of California's future power needs,
legislators openly wonder whether utility-rescue efforts are worth the
billions of dollars they would require. In 2003, for instance, long-term
contracts will cover 90% of the state's projected buying needs. "What does it
mean for Edison to take over the role [of buying power] if the state already
has signed all these contracts?" asks State Sen. Debra Bowen, a Democrat who
heads the senate's energy committee.

Nonetheless, the governor says he is "cautiously optimistic" the legislature
soon will approve an Edison rescue package.

Mr. Davis has been deeply enmeshed in almost every aspect of the electricity
mess this year, after having once been relatively aloof from the burgeoning
crisis. The state's utility-deregulation law, which was enacted in 1996,
worked fairly well until May of last year. Under the deregulation plan, the
state's investor-owned utilities sold off many of their power plants to other
companies and repurchased that electricity through a state-sponsored auction.
Consumer rates were frozen and customers were given the option to buy
electricity from nonutility retail suppliers.

But tight electricity supplies and a flawed auction system led to a sharp
rise in wholesale power costs. With retail rates frozen, Pacific Gas and
Edison racked up multibillion-dollar deficits. In January, Mr. Davis declared
an emergency and put the state into the power-buying business.

Since then, he hasn't been bashful about exercising his emergency powers.
When Mr. Davis couldn't get legislative permission to borrow money short-term
for power purchases, he signed an executive order authorizing the state to
borrow up to $5 billion from commercial lenders. That borrowing is supposed
to be repaid from a roughly $13 billion municipal-bond issue, the biggest in
U.S. history, scheduled for later this year.

In another executive order, the governor suspended emission standards for
power plants to let them run more hours during the peak-demand periods. And
the state has hired a small army of energy consultants and traders.

Despite such actions, some think Mr. Davis isn't being forceful enough. For
example, the state senate last week passed a resolution supporting the
governor's power to "commandeer power plants" if he deems such a step to be
necessary. Mr. Davis has said he doesn't have any plans currently to take
such an action.

'Crisis of Governance'

The electricity mess has produced "the most extraordinary crisis of
governance we've had in California in the postwar period," says Bruce Cain,
director of the Institute of Governmental Studies at the University of
California at Berkeley. Mr. Cain says more power has been placed in the
governor's hands and, as a result, the state has "gotten away from the
separation of powers and the checks and balances that we expect in American
government."

Mr. Davis says his actions have been essential and are working. He credits
the long-term power contracts with helping to cool the spot market for
electricity, where prices in recent weeks have dropped sharply. In June, the
state paid an average price of $167 a megawatt hour for electricity. That was
down from $243 in May, though still far above the $25-to-$27 range of two
years ago.

But some worry about how this rush to address a short-term problem will
affect the longer-term future. An economic forecast issued late last month
warned that continued heavy state involvement and spending in the electricity
business could produce enough of a drag on the California economy to reduce
state output by a total of $90 billion by 2005 and lead to higher
unemployment. "California is at a crossroads" between what amounts to a
"state takeover of the electricity industry" and a more market-oriented
approach to fixing the problem, says the joint study by the Anderson business
school at the University of California, Los Angeles, and Cambridge Energy
Research Associates.

Under a law enacted in February, none of the tens of billions of dollars of
state electricity purchases or related costs can be challenged as imprudent
by the Public Utilities Commission. That's an immunity that regulated
utilities in the old regime could only dream of. Then, if they spent too
much, the PUC could make their shareholders take a hit. Under the new system,
any purchasing missteps the state makes will be borne by consumers.

"It scares the hell out of me," says Henry Duque, a Republican PUC member
appointed by former Gov. Pete Wilson. "The state is so busy looking after its
own interests. ... Who's looking out for the ratepayer?"

PUC President Loretta Lynch, a Davis appointee, acknowledges that the
commission's authority has been seriously eroded. Under the new law, the
commission is supposed to charge consumers for whatever sum the Water
Resources Department spends on energy. She hopes to hold hearings to review
the spending "even if we can't do much about the result."

Gov. Davis says concern about less oversight of power purchases is a "bogus"
issue. "It is not as if a private company or utility was making the
decisions. The PUC doesn't need to second-guess the decisions of a public
body," he says.

But other state moves suggest there's a role for oversight. The state is only
now doing a conflict-of-interest inquiry after several of its new energy
hires filled out disclosure forms that showed they held stock in big power
suppliers to the state. The governor's press secretary, Steve Maviglio, says
he doesn't know whether they were asked about their holdings before being
hired. He says the state will take "appropriate action" where conflicts of
interest are found.

The rush to beef up an outgunned state energy team may have contributed to
the hiring problem. Early on, "we had two or three people sitting around and
dealing with" big and savvy electricity suppliers, says Mr. Davis, almost
like a "tee-ball team playing the New York Yankees."

The state has since hastily assembled a group of about 20 energy traders,
headed by a 30-year-old manager with one year of experience in the energy
business. The manager, Susan Lee, has held four jobs in the past four years
and is getting paid up to $480,000 over two years for her services. Ms. Lee
declines to comment.

Good Enough

Even so, Mr. Davis argues, state negotiators did well enough. They managed to
help lower current power costs, he notes, although that required signing
deals that could force the state to "pay a little more" than it otherwise
would have in the years ahead. "I think Californians are willing to accept
that bargain," he says.

Still, he and some other state leaders are urging the PUC to revoke a
fundamental tenet of deregulation: the right of consumers to shop around for
low-cost electricity. Removing this option is essential to prevent a "jail
break" of customers seeking prices lower than what the state must charge,
says Carl Wood, one of Mr. Davis's three Democratic appointees to the
five-member PUC. A flight of customers could leave too few to pay for
state-purchased power and repay the planned bonds. The PUC is scheduled to
vote in August on the request to revoke consumer choice.

Some users are concerned about being stuck with what amounts to a state
monopoly. "We don't want to lose our options" to shop for lower-cost
electricity, says Shawn Covell, a senior manager at Qualcomm Inc., the
telephone-equipment maker. Earlier this year, Qualcomm signed an agreement to
buy power from an alternative supplier, the kind of move state officials seek
to ban.

While consumer choice is in doubt, public disclosure has already been
lessened in some ways. For months, the state refused to divulge terms of
power deals it was signing, saying that doing so would harm negotiations on
additional contracts. It finally made public the long-term contracts this
month after a lawsuit by a group of newspapers, including The Wall Street
Journal. Details of short-term power purchases were disclosed for the first
time on July 9. They showed the state spent nearly $8 billion on spot-market
purchases in the first five months of 2001, exceeding its projections.

Some Davis allies are troubled. "Decisions are being made, with almost no
public discussion, that foreclose other options," says Ms. Bowen, the state
senator, who is close enough to the governor that she played his therapist in
the "Sopranos" skit. While Sen. Bowen says the governor needed to act
forcefully, she is troubled that so much power has been bought at what she
fears will prove to be extremely high prices in the years ahead. Still, she
voted for the bill that gave the executive branch carte blanche to make those
huge commitments.

The right to go to court also has been limited. Under a law soon to take
effect, challenges to certain aspects of the planned $13 billion bond issue
can be taken only to the state Supreme Court. That panel has accepted only
two utility-related cases over the past decade. Backers of the measure say it
gives adequate opportunity for review without unduly slowing the bond
offering.

'One Voice'

The state's enlarged role in the utility business was on display when
negotiators convened recently at the Federal Energy Regulatory Commission in
Washington to discuss alleged supplier overcharges. California's major
utilities played only a secondary role, even though they paid much of the
purported overcharges and ran up giant deficits in doing so. The governor had
named one of his advisers, Michael Kahn, as head of the 20-person state
delegation, and Mr. Kahn says the delegation "spoke with one voice -- mine."

Mr. Kahn told FERC that California was owed $8.9 billion in refunds. Others,
including the FERC administrative-law judge overseeing the talks, said the
number was probably much lower. The state wouldn't budge, and the talks ended
without an agreement. Last week the judge recommended that a "trial-like"
proceeding be held to sort out who owes what to whom.

Mr. Davis says the state will go to an actual court if it doesn't get all the
money it is seeking through the FERC proceedings. And he vows to do whatever
else is necessary to get California through the electricity crisis. "I have
no desire to subsume the legitimate role of the private sector," he says.
But, he adds, Californians got such a "raw deal" from the deregulation mess
that "I have had to had take a very militant, hard-line view."

Write to Rebecca Smith at rebecca.smith@wsj.com and John R. Emshwiller at
john.emshwiller@wsj.com

Copyright 2001 Copley News Service
Copley News Service
July 17, 2001, Tuesday

SECTION: State and regional

LENGTH: 289 words

HEADLINE: Davis dedicates 1st of 10 peaker plants; facility was built in 90
days

BYLINE: Kristen Green

DATELINE: SAN DIEGO

BODY:

??Gov. Gray Davis dedicated a new power plant in Otay Mesa yesterday, the
first
of 10 facilities that are being built quickly to provide California extra
power
when supplies are tight.

??The Larkspur Energy Project, just east of Brown Field, was built in 90 days
under a program designed by the governor to find more electricity for the
energy-starved state.

??''You can't move any faster than that to put megawatts on the grid,'' Davis
said during a news conference at the plant.

??A spokesman said Davis squeezed in the San Diego appearance between a
morning
budget meeting in Los Angeles and budget negotiations in Sacramento in the
afternoon. He has held news conferences for the opening of three major power
plants and has visited several others in the past few months.

??The Otay Mesa plant, operated by Boston-based InterGen, was the first to win
approval under the governor's 21-day emergency procedure for siting ''peaker
plants'' facilities that can be used when energy supplies dip dangerously low.
It also is the first gas-fired power plant to open in San Diego County in 40
years. The plant produces 90 megawatts, enough to power at least 6,750 homes.

??Nine more peaker facilities are expected to be built by October, including
an
additional plant near the border that was approved Wednesday.

??Although peaker plants are intended to operate only when power supplies fall
to critical levels, the state has eased those regulations to cope with the
ongoing crisis. InterGen officials said the InterGen plant will run an average
of 12 hours a day for the next couple of years. The new natural-gas powered
plant, which opened July 9, was running after the news conference.

??WAGNER-CNS-SD-07-16-01 2227PST

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????????????????????????????July 17, 2001, Tuesday

SECTION: State and regional

LENGTH: 1351 words

HEADLINE: Edison rescue plan is facing an overhaul

BYLINE: Ed Mendel

DATELINE: SACRAMENTO

BODY:

??Southern California Edison appeared to move a step closer to bankruptcy
yesterday as business and consumer groups criticized a rescue plan written by
Democratic leaders in the Assembly.

??In a surprising move, the Democratic chairman of the Assembly utilities
committee also denounced the leadership's plan and joined with a Republican to
sketch the outline of an alternative plan to rescue Edison.

??''I have told the author I ain't voting for it at gunpoint,'' said
Assemblyman Rod Wright, D-Los Angeles, chairman of the Assembly Utilities and
Commerce Committee.

??Assembly leaders say they are determined to have a floor vote on a rescue
plan before the Legislature's scheduled departure Friday for its monthlong
summer recess, which ends Aug. 20.

??Unless there is a breakthrough, there might be no legislative action before
Aug. 15, when a memorandum of understanding negotiated by Gov. Gray Davis and
Edison more than three months ago can be waived by either party.

??More important than that deadline, some legislators think, is action planned
by the state Public Utilities Commission in mid-August to support the sale of
a
bond of up to $13.4 billion.

??The bond will repay the taxpayer-supported state general fund for power
purchases made since January and cover some future purchases. The bond will be
paid off by ratepayers over 15 years.

??The PUC, carrying out previous legislation, is expected to ban the
direct-access contracts sought by businesses that allow utility customers to
shop for cheaper power.

??The ban will ensure that enough customers remain in the system to pay off
the
bond and, in a more recent development, the dozens of long-term power
contracts
signed by the state at above-market prices.

??The PUC also plans to allocate revenue from monthly ratepayer bills to pay
off the bond, further narrowing the options for working out an Edison rescue
plan in the Legislature.

??The Democratic leadership plan, by Assemblyman Fred Keeley, D-Boulder Creek,
is an alternative to an agreement negotiated by Davis and Edison that
legislators said was too generous to Edison. Davis' agreement calls for the
state to buy Edison's transmission system for $2.8 billion.

??Keeley was not optimistic about the fate of the bill yesterday as he
compared
it to treaty negotiations. ''It's time for us to show the world what our best
work product is ... and put it up for a vote,'' Keeley said.

??A spokesman for the governor said Davis could support the measure if it had
a
few alterations, such as tightening up a provision to make sure that monthly
ratepayer revenue pays off the bond.

??''There are a lot more things to like than not to like at this point,'' said
Steve Maviglio, Davis' press secretary.

??However, Californians for Energy, a coalition of business groups, said the
bill could ''deal a deathblow to many businesses'' by preventing them from
shopping for cheaper power.

??The bill would ban direct-access contracts for at least two years as all
customers help pay off the Edison debt, estimated at $3.5 billion. After two
years, only large users would pay off the remaining Edison debt.

??''If we don't bring rationality and fairness to the state's electricity
structure,'' said Allan Zaremberg, president of the California Chamber of
Commerce, ''we're going to see California companies expanding and relocating
to
states where the rates are fair.''

??A consumer group, the Foundation for Taxpayer and Consumer Rights, vowed to
pursue an initiative to overturn the plan if it is enacted. Doug Heller of the
foundation said that buying the Edison transmission system and paying off the
Edison debt would cost consumers $6.7 billion.

??''Lawmakers have attempted to wrap the utility plan in a protective
covering,
but the fact remains that this bill would force energy consumers and taxpayers
to transfer billions of dollars to utility companies,'' Heller said.

??Wright, chairman of the Assembly utility committee, joined with Assemblyman
Keith Richman, R-Northridge, to outline a plan that would require all
ratepayers
to pay off the Edison debt and would not purchase the Edison transmission
system.

??''Just come clean and just pay for it,'' Wright said. ''I don't want to own
their wires, and I don't need to own their wires to resolve their arrearage.''

??In addition to paying off the Edison debt, Wright said, the plan also would
allow direct-access contracts for businesses as the state's expensive
long-term
contracts expire.

??Wright said some of the contracts are for a year or less and will be
expiring
soon. He said that any refund from overcharges by generators would be used to
reduce the Edison debt.

??WAGNER-CNS-SD-07-16-01 2248PST

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??????????????????????????????Los Angeles Times

?????????????????????July 17, 2001 Tuesday ?Home Edition

SECTION: California; Part 2; Page 7; Metro Desk

LENGTH: 710 words

HEADLINE: The State;
;
No Accord Near on Edison Rescue;
Legislature: With Davis' proposal languishing and rival versions being
crafted,
the issue continues to be divisive.

BYLINE: MIGUEL BUSTILLO, TIMES STAFF WRITER

DATELINE: SACRAMENTO

BODY:

??The California Assembly has yet to begin debating an alternative plan to
save
Southern California Edison from bankruptcy--but already Monday, fissures were
emerging that could signal trouble for the measure by Democratic leaders.

??Consumer groups blasted a new bill spearheaded by Assembly Speaker Bob
Hertzberg, calling it a bailout every bit as bad for ratepayers as Gov. Gray
Davis' original deal to rescue the Rosemead-based utility.

??"Lawmakers have attempted to wrap the utility bailout plan in a protective
covering," said Doug Heller of the Foundation for Taxpayer and Consumer
Rights,
"but the fact remains that this bill would force energy consumers and
taxpayers
to transfer billions of dollars to utility companies."

??Meanwhile, a group of Democrats and Republicans in the lower house began
developing another alternative, one they said more cleanly rescued Edison
without any pretense that the state was getting something of equal value in
return.

??"If we've demonstrated anything in the past few months, it's that the state
of California has no business being in the power business," said Assemblyman
Joe
Canciamilla (D-Pittsburg), among those discussing the new alternative plan.

??Unlike the Davis or Hertzberg versions, this latest plan would not include
state acquisition of the utility's transmission lines.

??Judge OKs PG&E Bonuses

??In other energy news, a federal bankruptcy judge in San Francisco ruled
Monday that PG&E can pay more than 200 top managers $17.5 million in bonuses,
but must keep a promise not to pay for them by raising customer's utility
rates.

??Judge Dennis Montali said he was not about to second guess PG&E's decision
that it needs to pay the bonuses to prevent key employees from resigning as it
reorganizes its financial affairs.

??He rejected opposition from the U.S. trustee's office and the city of San
Francisco, saying PG&E had provided evidence of widespread concern among
managers that they would lose their jobs and of other companies hiring away
key
managers.

??In the Legislature, lawmakers have been trying to find a way to avoid having
Edison join PG&E in Bankruptcy Court. Until the two utilities become
credit-worthy again, the state will have to continue buying electricity on
their
behalf to pass along to California's consumers.

??The two utilities ran up billions in debt earlier this year and last because
they were buying electricity on the wholesale market for much more than they
could pass on to consumers under a state-imposed rate freeze.

??PG&E took itself into Bankruptcy Court in April rather than continue talks
with Davis, but the governor and Edison reached a tentative rescue deal days
later.

??The Edison deal was dubbed a bailout by consumer groups, which threatened an
initiative challenge if it was approved. And it met with skepticism from
lawmakers, who questioned the $2.76-billion price tag for transmission lines.
It
has languished in the Legislature.

??After months of near-inactivity, lawmakers in the Senate and Assembly last
week began to craft dueling alternative rescue plans in hopes of passing
something before their annual summer recess begins Friday.

??The two houses remain unable to agree on what the alternative to the Davis
plan should be, so each is advancing its own idea. Hertzberg (D-Sherman Oaks)
introduced a bill he wrote with three colleagues Friday. The Senate team, led
by
Byron Sher (D-Stanford), is still shaping a deal and has yet to introduce
legislation.

??Consumer Groups Opposed

??The Hertzberg bill, AB 82xx, would place most of the financial burden of
Edison's rescue on big business and other large consumers of electricity.
Nonetheless, consumer groups fear the costs will be borne by everyone as
businesses pass down the costs to customers.

??Because the bill also offers carrots to business and environmental groups as
a way to win the votes of various legislators, consumer groups compared it
with
the measure that deregulated California's power market in 1996.

??The details of the Hertzberg bill, which is even more complex than the
original Davis deal, are causing concern among some lawmakers, who have taken
it
upon themselves to come up with what they say is a simpler and more honest
bailout for Edison.

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??????????????????????????????Los Angeles Times

?????????????????????July 17, 2001 Tuesday ?Home Edition

SECTION: California; Part 2; Page 7; Metro Desk

LENGTH: 1204 words

HEADLINE: The State;
;
Consultants' Stock Buys Questioned;
Energy: State official urges conflict of interest probe into purchases of
shares
in power firms.

BYLINE: JEFFREY L. RABIN, ERIC BAILEY, TIMES STAFF WRITERS

BODY:

??Secretary of State Bill Jones on Monday urged California's attorney general
to investigate possible conflict of interest violations by consultants hired
to
help the Davis administration navigate the energy crisis.

??Jones, a Republican candidate for governor, said at a Los Angeles news
conference that Atty. Gen. Bill Lockyer and the state Fair Political Practices
Commission should determine whether seven of the consultants have conflicts of
interest because they own stock in one or more energy companies.

??He also asked the state's chief law enforcement officer to immediately
determine whether the governor's office violated state law by exempting 21 of
the 45 consultants from financial disclosure requirements.

??"I am gravely concerned that a cloud of illegality and collusion exists at
the highest level of our state government due to the actions and the conscious
policy of secrecy of Gov. Davis," Jones said.

??That brought a sharp retort from the governor's spokesman, Steve Maviglio,
who attacked Jones for engaging in campaign politics.

??"The secretary of state has a five-person team bankrolled by the taxpayers
attempting to dig up dirt for political reasons," Maviglio charged.

??"This is politics pure and simple being played by a candidate desperate to
get his name in the paper," Maviglio said. If there are any violations of the
law, he added, "they're going to be addressed."

??The secretary of state's entry into the energy controversy poses yet another
headache for Davis as he prepares to run for a second term next year. Already,
the GOP and some power producers have begun airing commercials critical of
Davis' handling of the power crunch, forcing the governor to dip into his own
campaign funds to fight back.

??Jones, as the state's chief elections officer, contends that his concerns
are
not just political. He noted that he appoints one of the five members of the
Fair Political Practices Commission, which enforces campaign finance and
conflict of interest laws.

??Among other things, Jones questioned why Vikram Budhraja, head of the
Electric Power Group, a Pasadena energy consulting firm, bought stock in
Edison
International and Dynegy Corp. in the days before he went to work for the
state.

??Budhraja was hired under a $6.2-million contract between his firm and the
state Department of Water Resources that was signed on Jan. 18. Like two
dozens
of the consultants hired by the state, he did not complete a financial
disclosure statement until last week, more than six months after he went to
work
for the department, which now buys power for the state's three largest
utilities.

??The financial disclosure statement filed by Budhraja last Thursday shows
that
he bought between $10,000 and $100,000 worth of Dynegy stock on Jan. 11. Six
days later, he bought between $10,000 and $100,000 of Edison stock.

??That was the same day that Davis declared a state of emergency because of
the
energy crisis and ordered the Department of Water Resources to begin buying
power on behalf of the state's financially troubled major utilities.

??On Jan. 22, Budhraja again bought between $10,000 and $100,000 of Edison
stock. On his disclosure statement, he indicated that he began work for the
state Jan. 25 and sold the stock on Jan. 29--the first opportunity he had to
divest his holdings.

??Jones told reporters that Budhraja's investments in Edison grew by 44% to
47%, while his Dynegy investment increased 28% in that brief period.

??Budhraja was also on retainer as a consultant to Edison International,
earning more than $100,000 in the year before becoming a contractor for the
state.

??Maviglio said Budhraja wrote a letter to DWR Deputy Director Ray Hart saying
he had no dealings with Edison International. He also was not involved in any
long-term contracting with Edison.

??Any profits Budhraja made from the stock are irrelevant because the stock
was
sold by the time he was on the job, Maviglio said.

??Another consultant, Bernard Barretto, who describes himself as an energy
trader/scheduler for the state, disclosed last week that he purchased stock in
power producer Enron Corp. But no date or amount of the purchase was listed.

??Financial disclosure forms filed last week by five other consultants show
they all own stock in Calpine Corp., a major California-based power
wholesaler.

??Energy trader Elaine L. Griffin bought between $10,000 and $100,000 worth of
Calpine stock on Feb. 1. Her contract with the state began Feb. 20. Griffin's
newly completed economic disclosure statement does not show her selling the
stock. Herman Leung, who went to work as an electricity scheduler in March,
bought between $2,000 and $10,000 worth of Calpine stock on Jan. 22.

??Schedulers William F. Mead, Peggy Cheng and Constantine Louie also disclosed
that they own stock in Calpine. Mead, in fact, said his holdings ranged
between
$100,000 and $1 million. But their forms contain an important omission: The
consultants do not say when they purchased the shares.

??Oscar Hidalgo, a Water Resources spokesman, said the agency's attorney is
reviewing all the past purchases to ensure that no laws were violated by
contractors buying power or negotiating long-term contracts with companies in
which they held stock.

??"We're reviewing all that to see if [there were] any problems with any past
negotiations," Hidalgo said. "We're looking at all the records in past buys or
trades so we understand who exactly did what."

??He said it's a "very big task" that will take weeks to complete.

??In the meantime, those contractors who have disclosed stock ownership have
been recused from working with generators in which they have a financial
interest.

??The governor's spokesman said several of the contractors who own stock in
Calpine are not traders, and thus do not have direct dealings with the
company.

??"If you own Calpine stock and aren't doing any business with Calpine, then
you're fine," Maviglio said.

??Calpine is one of a number of firms that negotiated long-term contracts with
the state and that have come under fire from critics who say they will saddle
consumers with artificially high electricity costs for years to come.

??For weeks, Jones has been sharply critical of the administration's failure
to
require its consultants to file conflict of interest forms, which must be
completed within 30 days of a person starting work.

??The governor's spokesman said the administration was told by the state's
political watchdog agency that only consultants serving in a staff capacity or
participating in decisions must file the forms.

??As a result, he said, only two dozen of the 45 consultants were required to
complete the paperwork--most of them "hastily and clumsily" prepared last
week,
according to the secretary of state.

??Two of those who have not filed are Wall Street executives Joseph Fichera
and
Michael Hoffman, key advisors to Davis on his plans to rescue California's
debt-ridden utilities. In that role, according to their contract, they could
make millions.

??Maviglio said the two men, who have done extensive work for private energy
companies, are "squeaky clean," but he would not elaborate.

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??????????????????????????????Los Angeles Times

?????????????????????July 17, 2001 Tuesday ?Home Edition

SECTION: California; Part 2; Page 6; Metro Desk

LENGTH: 820 words

HEADLINE: The Region;
;
Churches Send Forth Word on Energy Savings;
Power: Edison calls on them to help spread the news of state-mandated
discounts
for low-income customers. Many have signed up, the firm says.

BYLINE: WILLIAM LOBDELL, TIMES STAFF WRITER

BODY:

??Southern California Edison has enlisted the help of an unlikely
ally--churches--to sign up thousands of low-income customers for hefty
discounts
on rising utility bills.

??In just a few months, pastors, priests and church volunteers have become
Edison's most effective tool in telling the poor about a state-mandated
program
that offers 20% off electric bills and exemptions from rate increases.

??Refugio Gomez, a 62-year-old part-time janitor, signed up for the program
last month at the Our Lady of Victory in Compton, the church where he works.
Since then, his monthly electric bill has been cut from $48 to $18.

??"I hadn't heard about the program before," Gomez said. "[Church volunteers]
helped me with the forms."

??The pioneer faith-based program began with 22 Orange County Catholic
churches
in April and now is being rolled out throughout Southern California. Edison
employees will be at five churches in the South Bay area this weekend.

??The utility company initially has concentrated its efforts in Catholic and
African American churches, primarily because of their sizable congregations
and,
in the case of the Catholics, their large-scale organizations.

??But Edison officials say they plan to use a wide range of religious
organizations, including synagogues, mosques and temples, before the campaign
ends in the fall.

??"It's a really fantastic way to get the word out," said Pastor Steve
Overton,
who had Edison workers hand out information Sunday at his Christian Chapel
Foursquare Church in Moreno Valley. "The church is called to help the poor.
We're doing what the Lord wants us to do."

??Church leaders say they are aware that their endorsement of an Edison
program
can produce a halo effect for the embattled company. But getting cheaper
electric rates for their low-income congregants overrides those concerns.

??"We're not doing this to help Southern California Edison," said Jaime Soto,
auxiliary bishop for the Roman Catholic Diocese of Orange. "We're doing this
to
help our parishioners."

??About 62% of an estimated 1 million eligible customers participate in the
discount program that was started by the state Public Utilities Commission in
1989, Edison officials said. A family of four must earn less than $31,100 a
year
to be eligible for the program, which is also offered by the Gas Co.

??Religious institutions based in low-income areas have been able to knock
down
barriers that have hindered Edison's past efforts to reach out to the poor:
wariness and suspicion from recent immigrants, language and cultural
differences, and ineffective marketing campaigns.

??When the energy crisis began, Frank Quevedo, an Edison vice president,
decided religious organizations offered the best chance to reach customers who
would suffer the most from rising electric bills.

??He met with Soto, who provided demographic information from the diocese's 56
parishes.

??"He knew the [community] in a way we couldn't," Quevedo said. "He knew which
churches had the most seniors, low-income parishioners, limited English
speakers. We had great results."

??Other information sometimes is allowed to be distributed at Catholic church
services, but it usually revolves around health programs, immigration issues
and
education on voter registration.

??"We generally do not do business with business," Soto said. "But the extent
of the energy crisis and its impact on the poor made me rethink that policy.
I've been pleasantly surprised at how many people we've reached."

??A priest's endorsement of Edison's discount program, plus church volunteers
helping fellow congregants fill out Edison forms, has proven far more
effective
than inserting fliers in monthly bills or trying to engage harried shoppers
outside retail malls.

??In Orange County, more than 1,000 churchgoing customers took advantage of
the
discount in a single day. At Compton's Our Lady of Victory, more than 200
congregants joined the program. Through the churches, Edison also had handed
out
80,000 sign-up forms that parishioners have taken home.

??Edison workers volunteer time on Sundays to pass out information at
churches.
"It's really a humbling experience for us," said Rocio Contreras, a board
member
of the company's Latino employees' association. "What was really neat was to
have the priests and fathers there, letting the parishioners know who we are
and
why we were there. That made a difference."

??Churches are a natural go-between for wary immigrants and institutions that
provide poverty-relief services, said John Wilcox, chairman of religious
studies
and director of the Center for Professional Ethics at Manhattan College.

??"It's really using churches in an area where they're already very
effective,"
he said. "My only concern would be that the church needs to be an honest
broker.
The church probably has the greatest amount of trust among the poor.
[Immigrants] are so vulnerable."

GRAPHIC: PHOTO: (San Fernando Valley Edition) Pat Click, left, and Barbara
Bowman tell Connie Maddics, seated, about Edison's rebate plan. PHOTOGRAPHER:
ANNIE WELLS / Los Angeles Times

LOAD-DATE: July 17, 2001

??????????????????????????????12 of 62 DOCUMENTS

??????????????????????Copyright 2001 / Los Angeles Times

??????????????????????????????Los Angeles Times

?????????????????????July 17, 2001 Tuesday ?Home Edition

SECTION: Part A; Part 1; Page 14; National Desk

LENGTH: 970 words

HEADLINE: THE NATION;
;
In Support of Energy Plan, White House Burns Some Gas;
Politics: Cheney, other Bush officials fan out to make what the president
admits
is a tough case.

BYLINE: MEGAN GARVEY, TIMES STAFF WRITER

DATELINE: MONROEVILLE, Pa.

BODY:

??With his top officials dispatched to several states to try to recharge the
White House's coolly received energy policy, President Bush on Monday conceded
that the plan may be a harder sell now that oil prices are down and California
is experiencing fewer rolling blackouts.

??"Any time there's not an immediate problem that's apparent to people, it's
tough to convince people to think long-term," Bush said.

??Vice President Dick Cheney, the plan's chief architect, joined other top
administration officials and Republican members of Congress in public meetings
to bolster support for the initiative.

??At a town hall meeting in this Pittsburgh suburb, Cheney, suffering from
laryngitis, used his ailing voice to warn that a failure to generate new
energy
would be a "storm cloud out there on the horizon for the American economy."

??Earlier in the day, in comments delivered by his wife, Lynne, a last-minute
stand-in, the vice president offered a retooled message about conservation
that
signaled a marked change from his comments of just a few months ago.

??"Conservation is a must," Lynne Cheney told a conference of county
executives
gathered in Philadelphia, reading her husband's speech from a TelePrompTer.

??Previously, Cheney touted supply-oriented solutions and dismissively called
conservation a "sign of personal virtue" but "not a sufficient basis for a
sound, comprehensive energy policy."

??Those comments, as well as Cheney's former role as head of a Texas-based oil
supply company, had made the vice president a target for foes of the White
House
approach. And in the last few months, between problems with his heart and the
flap over his conservation remarks, the man considered by many to be the most
powerful vice president in history had been less visible on the national
stage.

??But he was front and center Monday--hoarse voice notwithstanding.

??Elsewhere, Energy Secretary Spencer Abraham, Interior Secretary Gale A.
Norton, Transportation Secretary Norman Y. Mineta and Environmental Protection
Administration chief Christie Whitman made town hall appearances from
Connecticut to South Dakota.

??Democrats on Capitol Hill criticized the public relations blitz, saying the
massive tax cut will make it difficult to fund any conservation initiatives.
An
energy bill dealing with nuclear energy, hydropower, clean-coal technology and
conservation is scheduled to come before the House Energy and Commerce
Committee
today.

??They also questioned why none of the president's surrogates were dispatched
to the region struggling the most with energy supply needs: the West Coast.

??"Out of 105 recommendations in the [administration's] plan, not one is
relevant to the situation in California, Oregon, Washington or other parts of
the West," said Rep. Bob Filner (D-San Diego).

??In front of a friendly audience under hot lights in the gymnasium at the
Community College of Allegheny County, Cheney strained his voice to answer
questions.

??In one of the night's few sharp moments, Pennsylvania Gov. Thomas J. Ridge,
a
Republican, took a swipe at California, noting: "We weren't the first state to
deregulate natural gas or electricity, but we were the first state to do it
right."

??Cheney again pushed many of the same tenets of the policy his energy task
force unveiled this spring: responsible exploration and production, the need
to
reduce dependence on foreign oil sources, and the role new technology can play
in meeting energy demands.

??At the day's first event, he watched from the sidelines in Philadelphia as
Lynne Cheney, taking his place at the lectern, reiterated the
administration's strong opposition to the Kyoto treaty.

??"President Bush agrees that the approach of Kyoto was flawed and
unworkable,"
she said on the eve of the president's second trip to Europe, where the U.S.
position is controversial. "It would have produced little or no net benefit to
the global environment, while imposing massive job losses on the American
economy."

??But the same speech contained his most extensive and positive comments to
date about the role of conservation during an energy crunch.

??"This is one of the guiding principles of the president's energy policy:
making better use of energy, through conservation and the latest technology,"
his wife said for him.

??The administration's stress on conservation, however, came with caveats,
both
from Bush and Cheney.

??During an Oval Office ceremony where he received a bust of Winston
Churchill,
Bush sounded a note of caution about California's woes.

??"It should be worrisome to people that the state that's had the best
conservation efforts is the state that's had brownouts," Bush said,
emphasizing
the need for a long-term energy policy that includes developing new sources of
energy.

??Cheney's speech warned that he and Bush "do not accept the false choice
between more energy and a safer environment." And during the brief time Cheney
used his own voice Monday, he once again pointed out the reality of current
U.S.
energy needs when it comes to petroleum.

??"The fact of the matter is we are dependent and will be dependent on
gasoline," he said.

??For some of the White House's biggest environmental critics, the subtle
policy shift expressed Monday didn't change any minds.

??"Conversions begin with lip service," said Carl Pope, president of the
Sierra
Club. "But all we're seeing so far is lip service. I hope we see more."

??*

??Times staff writers Edwin Chen and Richard Simon contributed to this story
from Washington.

??*

??RELATED STORIES

??Discount: Churches help Edison spread word to poor people. B6

??Edison rescue: Legislature works on alternatives to Davis' plan. B7

??Power trip: Available electricity and low rates give L.A. an edge. C1

??Lighten up: Campaign is aimed at countering state's dark image. C2

GRAPHIC: PHOTO: Vice President Dick Cheney, who has laryngitis, coughs as his
wife, Lynne, discusses the Bush administration's energy plan. PHOTOGRAPHER:
Associated Press

LOAD-DATE: July 17, 2001

??????????????????????????????13 of 62 DOCUMENTS

?????????????????Copyright 2001 The Chronicle Publishing Co.

?????????????????????????The San Francisco Chronicle

????????????????????JULY 17, 2001, TUESDAY, FINAL EDITION

SECTION: NEWS; Pg. A5

LENGTH: 555 words

HEADLINE: Consumers await word on rates;

Report's delay, government bond issue raise questions about electricity price
increase

SOURCE: Chronicle Staff Writer

BYLINE: Christian Berthelsen

BODY:
California electricity customers should find out this week whether they will
be
hit with yet another rate increase, this time to lay the groundwork for a huge
state government bond issue.

???The state Department of Water Resources was expected to issue its report on
the subject last week. The report has been delayed twice while the Department
of
Finance works feverishly to determine whether it can justify a bond that has
grown by nearly $1 billion with the existing money coming in from ratepayers.

???State officials, including S. David Freeman, a chief energy adviser to Gov.
Gray Davis, say they do not believe a third rate increase will be necessary.
But
the increased size of the bond issue and the reporting delays have raised
questions. Officials refused to rule out an increase.

???State regulators have already approved two rate increases this year, of 9
percent in January and up to 37 percent in May. The May increase was the
largest
in California history.

???Since January, the California government has been buying power on behalf of
the state's beleaguered utilities, which were no longer financially sound
after
skyrocketing wholesale power prices drained them of cash and credit. The
utilities, which continue to supply power to customers and bill them, have
been
paying the state no more than they receive in revenues, leaving the state
government to pick up the tab for the shortfall.

???The bond issue was intended to pay the state's general fund back for that
shortfall. It also would finance some power purchases into the future and
cover
the cost of bailing out Southern California Edison. California recently
increased the size of the bond issue by $900 million, bringing the total to $
13.4 billion.

???Wall Street bankers and legislators have sought to limit how much debt the
state can issue, saying the bond issue should be no larger than four times the
state's annual receipts from ratepayers. But with state leaders seeking to
increase the size of the bond issue by some 6 percent, questions have come up
about whether a rate increase is in the offing.

???State officials and regulators say they are unsure of whether an increase
will be necessary. While some numbers and estimates have been provided, a
completed report has not. Complicating matters, a rebate program created by
the
state to encourage people to conserve electricity is now cutting into the
state's revenue finances.

???In a conference call on Sunday, Freeman said increases would not be sought.

???"We have no need for a rate increase at this time, in my opinion," he said.
"As far as I'm concerned, looking at these numbers, we have no need for a rate
increase" in the next year.

???But in the same conversation, Freeman acknowledged he was offering nothing
more than his "professional opinion." Conditions have improved considerably in
recent weeks. Rate increases that took effect last month have finally brought
an
increased revenue stream to the state, and the average cost of power dropped
by
half this month, to $133 per megawatt hour.

???The change led Terry Shu, an analyst with JP Morgan, to ask in a conference
call with Pacific Gas and Electric executives last week whether "overall cash
flow numbers for the DWR ought to look much much better."E-mail Christian
Berthelsen at cberthelsen@sfchronicle.com

GRAPHIC: PHOTO

LOAD-DATE: July 17, 2001


Mark,

I am going to give a presentation on risk management to Wharton Business Schools professors.
Do we have a presentation about Enron (January 2001 or the 1st quarter summary) from
which I could borrow a fee slides about Enron?

Vince


PORTFOLIO REPORT - from Lycos Finance
Wednesday, Jan 9 2002 (generated at 03:00 PM PST)

Symbol      Close               Change     Today +/-             Total Return
-----------------------------------------------------------------------------
BEOS         0.11          0   (0.00%)         $0.00       $110.00  (-99.37%)
EEX          2.30      -0.17  (-6.88%)      $-170.00      $2300.00  (-16.36%)
GW           2.91      -0.08  (-2.67%)     $-1200.00     $43650.00  (+36.94%)
KCS          3.08      -0.07  (-2.22%)     $-1050.00     $46200.00 (+146.40%)
KEG          8.40      -0.43  (-4.86%)     $-4300.00     $84000.00  (+60.00%)
MHR          8.05      -0.15  (-1.82%)      $-750.00     $40250.00 (+101.25%)
TMR          3.80      -0.15  (-3.79%)     $-2250.00     $57000.00  (-15.56%)
-----------------------------------------------------------------------------
Totals                                     $-9720.00    $273510.00  (+29.70%)

Index          Last              Change
---------------------------------------
DOW Jones  10094.09    -56.46  (-0.55%)
NASDAQ      2044.89    -10.85  (-0.52%)
SP500       1155.14     -5.57  (-0.47%)

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main fax (212) 504-6666


Isreal,

I apologize, but I'm going to have to cancel.  We've got some major problems
that I have to handle.  Monday at 10:30 am works for me.  Let me know if it's
good for you.

Thanks,

Errol, X5-8274

Israel Estrada
03/09/2001 07:24 AM
To: Errol McLaughlin/Corp/Enron@ENRON
cc:

Subject: Confirmation

Hi Errol,

I just wanted to see if I could sit with you for a few minutes this morning.
We had tentatively said around 10:30 a.m. this morning.  Please let me know
if this is still okay for you.  Thanks again for your help.

Israel x53224


Although I don't yet have all the facts, Steve Hall said that late yesterday
(Friday) afternoon, the Governor exercised eminent domain over the IOU
forward contracts that the PX had been in the process of auctioning to pay PX
participants.  I would like Bracewell to research at least the following two
possible ways this action is unlawful.  First, this violates the banking
provisions of the PX tariff (Section 6).  These provisions requires the PX to
hold all PX accounts in trust for PX participants.  Second, these are
wholesale contracts and the State only has the right to exercise eminent
domain concerning retail service.  I don't have any law to support the second
idea but think it should be researched nonetheless.


I have an 8:30 a.m. doctor's appointment.

Sara Shackleton
Enron Wholesale Services
1400 Smith Street, EB3801a
Houston, TX  77002
Ph:  (713) 853-5620
Fax: (713) 646-3490


-----Original Message-----
From:  Baker, Ron
Sent: Wednesday, February 28, 2001 2:30 PM
To: Ephross, Joel
Subject: Re: FW: FW: Raptor 2 - Sale of CEG/RioGas

Joel,
Yes, the swap would need to be transfered by both parties.  I don't know
anything about a "minibook" or the documentation being requested.  Let me
know if you have more questions.  Thanks,
Ron

	Joel Ephross/ENRON@enronXgate 02/28/2001 01:21 PM 	   To: Ron
Baker/Corp/Enron@ENRON  cc:   Subject: FW: FW: Raptor 2 - Sale of CEG/RioGas

Ron, do you know the answer to this?
 -----Original Message-----
From:  Shackleton, Sara
Sent: Wednesday, February 28, 2001 12:05 PM
To: Funk, Brenda L.
Cc: Ephross, Joel
Subject: Re: FW: Raptor 2 - Sale of CEG/RioGas

Brenda:  Thanks.  Also, do you have a Raptor IV minibook?  We don't have any
Raptor IV documentation.  Do both swap parties intend to transfer positions?

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

	Brenda L Funk/ENRON@enronXgate 02/28/2001 11:50 AM 	   To: Joel
Ephross/ENRON@enronXgate, Sara Shackleton/HOU/ECT@ECT  cc:   Subject: FW:
Raptor 2 - Sale of CEG/RioGas

Just to clarify... the transfer of the swap has not been put on hold, but the
sale of the assets hedged by the swaps.  I have been working on the asset
sale out of Rawhide, but I'm not familiar with the transfer of the swap.

Sara,

I will send executed copies of the swaps shortly.

Thanks,
B

 -----Original Message-----
From:  Funk, Brenda L.
Sent: Wednesday, February 28, 2001 11:35 AM
To: Ephross, Joel
Cc: Shackleton, Sara
Subject: RE: Raptor 2 - Sale of CEG/RioGas

Just an update... I spoke with V&E this morning and the sale has been put on
hold.  The negotiations broke down last week and, with the holiday, there has
been no further progress.

I'll let you know when I get an update.

Thanks,
B

 -----Original Message-----
From:  Ephross, Joel
Sent: Wednesday, February 28, 2001 11:31 AM
To: Shackleton, Sara; Funk, Brenda L.
Subject: FW: Raptor 2 - Sale of CEG/RioGas

 -----Original Message-----
From:  Baker, Ron
Sent: Thursday, February 15, 2001 9:12 AM
To: Siurek, Ryan; McKean, George; McKillop, Gordon; Ephross, Joel
Subject: Raptor 2 - Sale of CEG/RioGas

FYI
I was just notified that the sale of CEG and RioGas which are hedged in
Raptor 2 will likely close next week.  Current estimates indicate that the
loss on the sale will be around $30MM.  It is expected that the sale of the
one remaining South American LDC will result in gains that will more than
offset this loss.  Obviously, those expectations can change, but I wanted to
keep everyone informed on this.

Ryan - This expected realized loss is exactly the situation which most
concerned us in the meeting with Patti this week.  Is there anything we can
do to push them towards resolving that timing of realized losses is
irrelevent, and this is not an issue?


Kent and Tim,

Attached are Excel workbooks for the Storage Summary months of June through October, 2001. On the summary sheet of each workbook, in Columns BC - BG is a matrix depicting which nomination cycles were allocated and which were not.

In a separate Excel workbook I pasted a column of dates onto the LSPower2001Analysis file I received earlier from and used bold lettering and shading ti identify the dates where NO allocations were performed.

I hope this is data you art looking for. If I can provide additional information, let me know.  I will be out of the office on Monday and Tuesday, Oct. 22 & 23, returning on Wednesday Oct. 24th.


As discussed, we knew this was coming!
 -----Original Message-----
From: 	Jaquet, Tammy
Sent:	Thursday, September 20, 2001 9:07 AM
To:	Sullivan, Patti; Miller, Stephanie; Superty, Robert
Subject:	El Paso's Bid to Hike Export Capacity Opposed

NGI's Daily Gas Price Index
published : September 20, 2001
El Paso's Bid to Hike Export Capacity Opposed
Southwest local distribution utilities and municipal distributors have called on FERC to reject, or convene a technical conference to consider, El Paso Natural Gas' application to boost export capacity on the Samalayuca Lateral by about 100 MMcf/d to meet natural gas demand in northern Mexico. They argue that such action would deprive existing El Paso customers of already-tight capacity on the pipeline's South Mainline.
There are a number of ongoing cases at the Commission addressing the limited capacity on the El Paso system, and its capacity-allocation procedures, the distributors pointed out. "Yet...El Paso proposes to allow a unilateral reallocation of 100,000 Mcf./d of capacity to serve customers outside the United States without fully disclosing from which customer the capacity will come and its likely impact on all these pending matters," said Southern Union Gas Co. The utility asked the Commission to convene a technical conference.
Southwest Gas Corp. and the El Paso Municipal Customer Group said they were concerned the proposed increase in the lateral's capacity may "adversely affect" them and other customers because capacity on the South Mainline would be needed to move the additional export load. FERC "should not approve increased export capacity without a corresponding increase in mainline capacity" on El Paso's system, they said.
Southwest and the municipal distributors urged the Commission to either: 1) reject the El Paso application outright; 2) in the alternative, set the case for hearing to assess the impact on existing customers; or 3) absent rejection or hearing, defer consideration of the application until other pending cases related to the level of capacity on El Paso are resolved.
In its application, El Paso asked FERC for the go-ahead to increase the maximum daily export capacity on the lateral by about one-third to 308 MMcf/d to correspond with the "rapid development" of the gas infrastructure in the northern Mexico state of Chihuahua. It said it already had entered into a long-term agreement for the entire proposed increase of 100 MMcf/d of export capacity with MGI Supply Ltd (See Daily GPI, Aug. 31 <d20010831e.html>).


Enron Capital & Trade Resources Corp.

	From:  Marcelo Meira @ ENRON                           12/07/2000 11:01 AM

To: Matt A Brown/HOU/ECT@ECT, Susan M Scott/HOU/ECT@ECT
cc: Daniel Presley/NA/Enron@Enron
Subject: ERMS traders in EnPower

Susan / Matt,

below are the ERMS desks currently in EnPower. Could you please send me some
trader's names associated w/ each of these desks?

Regards, Marcelo

1 NG Price - John Arnold
2 Physical Crude
3 Pipe Options - Larry May
4 Transport Central -
5 Transport East -
6 Transport West -
7 Transport West 2 -
8 GD Options - Pete Keavey


Russell,

Please give Grim a call and find out what they are trying to do.  Explain to
him why this is a bad idea.  Sara, we don't trade financial out of ELFI so
that's one off the list - and liquids does not have a master physical to the
best of my knowledge. We are doing some financial business with ENA/Hess
Energy Services today with a gty and omnibus treatment. My understanding from
Bob Bruce is that all the finc trading is being cleaned out of ECTRIC and
stuck somewhere else too.  I do not think ECT Singapore does financial
trading either -so that may be another quick one to shoot down.

 -----Original Message-----
From:  Shackleton, Sara
Sent: Monday, March 05, 2001 8:45 AM
To: Rohauer, Tanya
Cc: Jones, Tana
Subject: Hess Energy Trading Company, LLC ("Hess") and affiliates

Hi, Tanya:

I received another call from Dana Dellacona at Hess asking about online and
offline trading.  I'll direct her once again to Tana for online trading.

I'll ask her again to describe the products they want to trade.

Will you evaluate?

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 03/05/2001 08:41 AM -----

	Sara Shackleton 02/07/2001 05:29 PM 	   To: Tanya Rohauer/HOU/ECT@ECT  cc:
Subject: Hess Energy Trading Company, LLC ("Hess") and affiliates

I have received the following request from a Hess lawyer:

ECT and Hess have an executed ISDA effective 1/29/98.

Guess what they want?  The following ISDA agreements to trade financial (and
PHYSICAL):

(1)  Amerada Hess Corp.   and  ENA
(2)  Hess Energy Services Company, LLC and  ENA
(3)  Hess Energy Trading Company, LLC  and  ELFI
(4)  Hess Energy Trading Company, LLC  and ECT Singapore Pte. Ltd.
(5)  Hess Energy Trading Company, LLC  and ECTRIC

I explained our financial trading entities.
She did not know what products each of the Hess affiliates would be trading.
Hess CREDIT:  Grim Trivino at 212-536-8979
Hess LEGAL:  Dana Dellacona at 212-536-8133

Please let me know who will handle in credit (and I'll intercede with the
lawyer).  TO MY KNOWLEDGE, NOBODY AT ENRON IS PUSHING HESS.
As usual, thanks for your help.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com


Here is that "Umbrella" guaranty we were talking about.  Why don't you print
it out and then let's go over the changes that need to be made...
----- Forwarded by Tana Jones/HOU/ECT on 08/23/2000 05:54 PM -----

	Carol St Clair
	06/29/2000 12:15 PM

		 To: Mary Tudon/HOU/ECT@ECT
		 cc: Tanya Rohauer/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT,
Samantha Boyd/NA/Enron@Enron, Jeffrey T Hodge/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT,
Elizabeth Sager/HOU/ECT@ECT
		 Subject: Multi-Product Counterparty Guaranty

----- Forwarded by Carol St Clair/HOU/ECT on 06/29/2000 12:13 PM -----

	Carol St Clair
	06/29/2000 12:13 PM

		 To: Mary Tudon/HOU/ECT@ECT
		 cc: Tanya Rohauer/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Mark
Taylor/HOU/ECT@ECT, Susan Bailey/HOU/ECT@ECT, Tana Jones/HOU/ECT@ECT,
Samantha Boyd/NA/Enron@Enron, Jeffrey T Hodge/HOU/ECT@ECT, Stacy E
Dickson/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Leslie Hansen/HOU/ECT@ECT,
Elizabeth Sager/HOU/ECT@ECT
		 Subject: Multi-Product Counterparty Guaranty

Mary:
Enclosed is the Counterparty form that we have come up with for Multi-Product
Guarantys.  Depending upon the products that need to be covered, each
Guaranty will need to be modified to make sure that it describes the proper
entities and products.  I will send along the Enron form of this shortly but
please pass this along to the appropriate people in the credit group.

Jeff, Stacy and Harry,
Are you going to change the Physical product form of Guaranty to look more
like this?  Power has changed their form and it may help for us to all be
consistent especially when we are asked to amend an existing Guaranty to
include more products.  If you do decide to amend your form, please send the
new form to credit.

Thanks for everyone's input.

Carol


Yes, 11:00 am will work.  I will confirm with TJ.  Thanks for you help.

-----Original Message-----
From: Kevin.M.Presto@enron.com [mailto:Kevin.M.Presto@enron.com]
Sent: Monday, February 04, 2002 7:04 PM
To: Baker, James+
Subject: RE: meeting with Erik Fabrikant

Can he come over to our trading floor around 11:00 am?   I can give him a
quick tour and then give him a macro overview of the NA energy markets.
Please confirm via e-mail and directly with my asst. (TJ Black at
713-853-5800).

Thanks.

   -----Original Message-----
   From: "Baker, James+" <James.Baker@ubsw.com>@ENRON [mailto:"Baker,
   James+" <James.Baker@ubsw.com>@ENRON]
   Sent: Mon 2/4/2002 4:26 PM
   To: Presto, Kevin M.
   Cc:
   Subject: RE: meeting with Erik Fabrikant

   Russell would like for you to meet with him for an informational
   interview. An in person meeting would be preferable,

   but whatever is available with your schedule is fine.  My understanding
   is that he is not formally looking for a job

   yet, but trying to get a feel for different types of positions available
   within the energy industry. Erik is the son of

   one of Russell's clients and will graduate from school in May.  I will
   try to get more color from Russell and forward it

   to you.

   -----Original Message-----

   From: Kevin.M.Presto@enron.com [mailto:Kevin.M.Presto@enron.com
   <mailto:Kevin.M.Presto@enron.com>]

   Sent: Monday, February 04, 2002 4:18 PM

   To: Baker, James+

   Subject: RE: meeting with Erik Fabrikant

   What do you need from me?   Do you want me to meet with him?  talk to
   him

   on the phone?   go to lunch?    is he looking for a job?    As you can
   see,

   I don't have much information of the objective here.

       -----Original Message-----

      From:   "Baker, James+" <James.Baker@ubsw.com>@ENRON

      Sent:   Monday, February 04, 2002 3:43 PM

      To:     Presto, Kevin M.

      Subject:  meeting with Erik Fabrikant

      Kevin,

      It looks like Tuesday morning will work best for Erik.  I am supposed
   to

      meet with him at 9:00 am Tuesday morning, but

      am flexible if that time works for you.  Just let me know what time
   is

      ideal and I will schedule it with Erik.

      Visit our website at http://www.ubswarburg.com
   <http://www.ubswarburg.com>

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Visit our website at http://www.ubswarburg.com

This message contains confidential information and is intended only
for the individual named.  If you are not the named addressee you
should not disseminate, distribute or copy this e-mail.  Please
notify the sender immediately by e-mail if you have received this
e-mail by mistake and delete this e-mail from your system.

E-mail transmission cannot be guaranteed to be secure or error-free
as information could be intercepted, corrupted, lost, destroyed,
arrive late or incomplete, or contain viruses.  The sender therefore
does not accept liability for any errors or omissions in the contents
of this message which arise as a result of e-mail transmission.  If
verification is required please request a hard-copy version.  This
message is provided for informational purposes and should not be
construed as a solicitation or offer to buy or sell any securities or
related financial instruments.


Does this mean that 598738 should be off peak hours as well? Because 598739
is only one side of a sleeve deal for EES. I would think that both sides need
to have the same hours......

Let me know, and I'll change them accordingly.

Thanks,
Kate

Evelyn Metoyer@ENRON
05/02/2001 08:43 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Re: Prebon deal errors from yesterday

sorry it is 598739

   Kate Symes @ ECT                05/02/2001 10:25 AM

To: Evelyn Metoyer/Corp/Enron@ENRON
cc:

Subject: Re: Prebon deal errors from yesterday

598736 and 598737 have been changed to off-peak hours. But I can't pull up
306927. Is this the right deal number?

Kate

Evelyn Metoyer@ENRON
05/02/2001 08:03 AM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: Prebon deal errors from yesterday

Bob Badeer
deal 306927
Prebon shows as off-peak hours....enpower has peak hrs

Bob Badeer
deal 598737
Prebon shows as off-peak hours....enpower has peak hrs

Bob Badeer
deal 598736
Prebon shows as off-peak hours....enpower has peak hrs


im going to call ny and tell them you should really go up there now

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 11:37 AM
To:	Maggi, Mike
Subject:	RE:

ok you are boring!

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 11:37 AM
To:	Nelson, Michelle
Subject:	RE:

nope

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 11:34 AM
To:	Maggi, Mike
Subject:	RE:

i'm funny.  don't you think?

 -----Original Message-----
From: 	Maggi, Mike
Sent:	Monday, November 19, 2001 11:34 AM
To:	Nelson, Michelle
Subject:	RE:

jerk

 -----Original Message-----
From: 	Nelson, Michelle
Sent:	Monday, November 19, 2001 11:31 AM
To:	Maggi, Mike
Subject:	RE:

ya think?


Bhala,

I double checked with HR, and the offer you received is in line with what we
are offering to other graduate level summer interns.   If you have better
offers, I certainly wouldn't hold it against you for taking them over what we
are offering, but we can't really justify raising the offer at this time.

We can re-imburse you for shipping expenses up to a reasonable amount, say
$500, if you need to ship things down.   You can just save the receipts for
these expenses and Shirley can fill out the necessary expense forms.

Best regards,

Stinson