Forwarded at request of Joe Hillings:

---------------------- Forwarded by Lora Sullivan/Corp/Enron on 12/10/99
12:03 PM ---------------------------

"Robert C. Fisher" <RCFisher@HillsandCo.Com> on 12/10/99 10:48:15 AM
To: Joe Hillings/Corp/Enron@ENRON
cc: "Carla A. Hills" <CAHills@HillsandCo.com>, Erin Endean
<EMEndean@hillsandco.com>, "Edward A. Casey, Jr." <EACasey@HillsandCo.com>

Subject: WTO -- E-Commerce

Joe -- I had a conversation this morning with Jonathan McHale at USTR on
the status of E-commerce after Seattle.

McHale said that the E-commerce moratorium put in place by ministers in
May 1998 was schedule to run through the Third WTO Ministerial (i.e.
Seattle).  Since that Ministerial was suspended (and not formally
ended), the US view is that the moratorium is still in effect.

As to the work done in Seattle, McHale observed that the E-commerce
people had reached a fair degree of consensus on an extension of the
E-commerce moratorium, a work plan to look at the applicability of the
WTO's rules to E-commerce, and a commitment about not imposing
unnecessary regulations on E-commerce.  Since the Ministerial was
suspended, that progress is in limbo, and the US and other WTO members
are considering how best to proceed.

I asked him about the comments attributed the EU officials that the EU
would agree to an extension of the E-commerce moratorium only if other
countries agreed to the EU's assertion that all E-commerce falls under
the WTO services agreement (GATS).  He said that the US would never
agree to that, and that other countries shared the U.S. position.

As to next steps, he suggested that it would be important for companies
to go through the current WTO commitments and the UN's Central Product
Classification (CPC) code to make sure that whatever E-commerce
activities they are engaged in are covered.  I mentioned the work we are
doing on energy services, and he said the work in E-commerce in
analogous -- we should go through and see what services already are
covered, and let USTR know if we think that something we are doing is
not covered and needs to be brought into the service definitions.  In
other words, define who we are, what barriers we face (or what areas
need to be kept barrier free), and what our key issues and markets are.

As Enron considers what its interests are in E-commerce, you probably
will want to think both about the activities you are directly engaged
in, and those activities your customers are engaged in.  For example,
the benefits of having the pipeline (i.e. bandwidth) unencumbered by
tariffs or unnecessary regulations would be limited if the products
delivered over the pipeline were subject to significant restrictions.

McHale was very open, and I expect he would be pleased to meet with
Enron if you wanted to get into a more detailed discussion of the issue.

Regards -- Bob


did we do this letter for january?  price is NWPL - $0.04 = $8.72

---------------------- Forwarded by Joan Quick/HOU/ECT on 01/31/2001 10:00 AM
---------------------------

Teresa G Bushman
12/14/2000 04:57 PM
To: kckrisa@apex2000.net
cc: Joan Quick/HOU/ECT@ECT
Subject: December letter agreement

Ken:

Please sign and send the attached December letter agreement or call me if you
have questions or comments.

Thanks.

Teresa

Teresa G. Bushman
Enron North America Corp.
1400 Smith Street, EB 3835A
Houston, TX  77002
(713) 853-7895
fax (713) 646-3393
teresa.g.bushman@enron.com

----- Forwarded by Teresa G Bushman/HOU/ECT on 12/14/2000 04:56 PM -----

	Teresa G Bushman
	12/08/2000 04:55 PM

		 To: Joan Quick/HOU/ECT@ECT, kckrisa@apex2000.net
		 cc:
		 Subject: December letter agreement

A draft is attached.  Please call me with questions or comments.

Teresa G. Bushman
Enron North America Corp.
1400 Smith Street, EB 3835A
Houston, TX  77002
(713) 853-7895
fax (713) 646-3393
teresa.g.bushman@enron.com


I would like you to attend
 -----Original Message-----
From: 	Nemec, Gerald
Sent:	Wednesday, September 19, 2001 11:43 AM
To:	Thorne, Judy
Cc:	Wallumrod, Ellen; Grass, John
Subject:	RE: Wellhead Master

Let's discuss on Thursday.

 -----Original Message-----
From: 	Thorne, Judy
Sent:	Monday, September 17, 2001 9:35 AM
To:	Nemec, Gerald
Cc:	Grass, John; Wallumrod, Ellen; Ferries, Nelson
Subject:	Wellhead Master

Gerald,

The Upstream group is doing a considerable amount of repeat business with several customers. There is an increasing need to execute Master agreements with these customers.

We would like to begin the development of a Master Wellhead contract that includes the same type of provisions that our Upstream GTC contracts include such as tolerances, keep whole, nomination deadlines, etc. Can you please let me know if you see any issues with changing the Master Firm contract to accomodate the Upstream business or if there is anything else that you may need from us to begin creating this Upstream Master?

Thanks,
Judy


Hello everyone:

I believe all of you are new employees since we last ordered the Research
shirts.

They are a Blue Denim (Tencel), button down, long sleeve, shirt with a logo
over the left pocket.

Several of you have been asking for them so I will place an order.

Please let me know the size shirt you would like.  They come in Ladies, or
Mens in small, medium, large, and extra-large.  Please circle the size
you would like.

          Name                          Size

Tom Barkley    S   M   L   ExL

Stephen Bennett   S   M   L   ExL

Rakesh Bharati    S   M   L   ExL

Lance Cunningham   S   M   L   ExL

Rabi De    S   M   L   ExL

Anita Dupont    S   M   L   ExL

Shane Green    S   M   L   ExL

Anguel Grigorov   S   M   L   ExL

Seksan Kiatsupaibul   S   M   L   ExL

Sandeep Kohli    S   M   L   ExL

Jaesoo Lew    S   M   L   ExL

Martin Lin    S   M   L   ExL

Kate Lucas    S   M   L   ExL

Iris Mack    S   M   L   ExL

Praveen Mellacheruvu   S   M   L   ExL

Mitra Mujica    S   M   L   ExL

Wichai Narongwanich   S   M   L   ExL

Nelson Neale    S   M   L   ExL

Kenneth Parkhill    S   M   L   ExL

Chris Pernoud    S   M   L   ExL

Leann Walton    S   M   L   ExL


Louise, I know the investment is not liquid but should the investment will
do well and with the tax deferral most clients will want to defer the
gains.  The company in in the business of reinsuring the life business not
property and casualty.

Louise.Kitchen@enron.com on 07/31/2001 02:59:46 PM

To:   IMCEANOTES-Susan+2ETEXAS/2EWagner/40chase/2Ecom/40ENRON@ENRON.com,
      louise@enron.com
cc:
Subject:  RE: Hampton RE

Read it, the exit is pretty hard particularly as I know little about the
reinsurance markets.

Thanks anyway

Louise

    -----Original Message-----
   From:   Susan.TEXAS.Wagner@chase.com@ENRON

[mailto:IMCEANOTES-Susan+2ETEXAS+2EWagner+40chase+2Ecom+40ENRON@ENRON.com]

   Sent:   Tuesday, July 24, 2001 12:55 PM
   To:     louise@enron.com
   Subject:  Hampton RE

   Louise, I am sending you some information on a hedge fund investment
   called
   Hampton RE.  The returns will be tax deferred and any gains subject to
   long
   term capital gains treatment.  I call you in a few days to get your
   thoughts on the investment.  Hope you and your new baby are doing well.
   Susan

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


[IMAGE]

   [IMAGE] [IMAGE]  [IMAGE]  [IMAGE]  [IMAGE] [IMAGE]  [IMAGE]  [IMAGE]  [IMAGE]       [IMAGE]   [IMAGE]   [IMAGE]   [IMAGE]   [IMAGE]     	 [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]          Updated: Jan. 8, 2002     [IMAGE]      [IMAGE]   [IMAGE]    [IMAGE] [IMAGE] [IMAGE]           Tabled, canceled project numbers climbing  The flow of tabled and canceled power plant projects, at first a meandering stream, has become almost a raging torrent-and some industry watchers predict Niagara Falls-like volumes of deals soon will come to a screeching halt. [IMAGE] [IMAGE]         [IMAGE]     [IMAGE] [IMAGE]       [IMAGE]      [IMAGE] [IMAGE]   [IMAGE]           [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]            [IMAGE]             [IMAGE] [IMAGE]   [IMAGE]            [IMAGE]   [IMAGE]           [IMAGE] [IMAGE]             [IMAGE] [IMAGE]   [IMAGE]          [IMAGE] [IMAGE]     [IMAGE]       Wind power gaining in popularity Traditional energy companies embracing wind  Texas a boon to wind farms  2001: the year for new wind power [IMAGE] [IMAGE]        [IMAGE]   [IMAGE]   [IMAGE] [IMAGE]             [IMAGE] [IMAGE]             [IMAGE] [IMAGE]     [IMAGE]       Shedding light on power prices EU study shows end of price transparency  Denmark residential customers pay more  VAT impacts prices   [IMAGE] [IMAGE]        [IMAGE]  [IMAGE]    [IMAGE] [IMAGE]             [IMAGE] [IMAGE]             [IMAGE] [IMAGE]     [IMAGE]       Scaled-back Alaskan pipeline proposal in works Alaska Highway project looks for approval  U.S./Canada border issue still barrier   [IMAGE] [IMAGE]        [IMAGE]   [IMAGE]   [IMAGE] [IMAGE]             [IMAGE] [IMAGE]             [IMAGE] [IMAGE]   Enron trading unit to be auctioned Thursday full story...   NRC recommends licensing private spent fuel storage facility full story...   MidAmerican Energy selects site for 900-MW coal-fired plant full story...   Progress Energy hires Enron vet Hirl for trading unit full story...   Spot natural gas prices rise in January full story...   Energy companies fighting California regulation plan full story...   Enron's Wessex denies management buyout full story...   Duke proposes plan to spur competition in Massachusetts full story...   NIPSCO seeks to separate gas, electric businesses full story...   KMP to purchase additional interest in pipeline full story...   To view all of today's Executive News headlines,  click here               [IMAGE] [IMAGE] [IMAGE] [IMAGE] [IMAGE]         [IMAGE] [IMAGE]  Copyright ? 2001 - Platts, All Rights Reserved   [IMAGE]   Market Brief  Monday, January 7  Stocks Close Change % Change DJIA 10,197.05 (62.7) -0.61% DJ 15 Util. 296.27 2.1  0.71% NASDAQ 2,037.11 (22.27) -1.08% S&P 500 1,164.89 (7.6) -0.65%     Market Vols Close Change % Change AMEX (000) 141,033 (25,803.0) -15.47% NASDAQ (000) 2,111,444 (92,331.0) -4.19% NYSE (000) 1,305,237 (207,832.0) -13.74%     Commodities Close Change % Change Crude Oil (Feb) 21.42 0.02  0.09% Heating Oil (Feb) 0.5705 (0.015) -2.63% Nat. Gas (Henry) 2.27 (0.005) -0.22% Propane (Feb) 30.25 (0.65) -2.10% Palo Verde (Feb) 24.75 0.00  0.00% COB (Feb) 24.75 0.00  0.00% PJM (Feb) 27.55 0.00  0.00%     Dollar US $ Close Change % Change Australia $  1.928 0.008  0.42% Canada $   1.60 0.001  0.06% Germany Dmark  2.19 0.005  0.23% Euro   0.8934 (0.002) -0.22% Japan ?en  131.0 0.100  0.08% Mexico NP 9.15 (0.020) -0.22% UK Pound   0.6951 0.0034  0.49%     Foreign Indices Close Change % Change Arg MerVal 343.22 0.00  0.00% Austr All Ord. 3,385.30 11.00  0.33% Braz Bovespa 14378.59 46.67  0.33% Can TSE 300  7870.30 37.06  0.47% Germany DAX 5232.22 (86.51) -1.63% HK HangSeng 11892.64 190.49  1.63% Japan Nikkei 225  10942.36 70.87  0.65% Mexico IPC  6565.44 (46.64) -0.71% UK FTSE 100 5,293.60 (30.20) -0.57%       Source:  Yahoo!, TradingDay.com and NYMEX.com   	     [IMAGE]  [IMAGE]  [IMAGE]  [IMAGE]  [IMAGE]   [IMAGE]   [IMAGE]  [IMAGE]   [IMAGE]          [IMAGE]  [IMAGE]   [IMAGE]   [IMAGE]

 - Market briefs.xls
 - bug_black.gif


Kate I am missing one more for Bloomberg:
Mike Swerzbin
Enron buys from BP Energy 25 mw April Mid-C peak hrs at $363.00

---------------------- Forwarded by Evelyn Metoyer/Corp/Enron on 03/22/2001
04:17 PM ---------------------------

Evelyn Metoyer
03/22/2001 03:59 PM
To: Kate Symes/PDX/ECT@ECT
cc:

Subject: 3/22 Checkout

BLOOMBERG

Mike Swerzbin
deal 558066
Bloomberg shows price as $367.....enpower has $267.

Jeff Richter
I am missing the following deal:
Enron sells to Dynegy Power 25 mw of 3/23-3/24 off-peak SP-15 at $140.00

PREBON

Dianna/Sean

I am missing the following deals:
1) Enron buys from Duke 25 mw of 3/23-3/24 Mid-C peak hrs at $310.00
2) Enron sells to Mirant 25 mw of 3/23-3/24 Mid-C peak hrs at $310.00

AMEREX WEST
All deals checked out o.k.


1) Only online transactions will be commission-free.
2) The message bar at the top of the screen shows the ultimate customer, but
not the broker. Today's Transactions at the bottom of your Stack Manager
screen shows both.

Dave


FYI

----- Forwarded by Gerald Nemec/HOU/ECT on 03/07/2001 03:42 PM -----

	"Crawford, Ann" <AnnCrawford@aec.ca>
	03/07/2001 03:26 PM

		 To: "'Gerald.Nemec@enron.com'" <Gerald.Nemec@enron.com>
		 cc:
		 Subject: FW: ENFOLIO Comments

Gerald,  I haven't forgotten about this.  Will try to get it out to you
tomorrow.  Please email your phone and fax #'s.  Thanks,  Ann

> -----Original Message-----
> From: Crawford, Ann
> Sent: Friday, March 02, 2001 5:44 PM
> To: 'Gerald.Nemec@enron.com'
> Cc: Day, Brian (Denver)
> Subject: ENFOLIO Comments
>
> Gerald,
>
> I do apologize for not getting the comments away to you today as promised.
> I have two items I have to confirm with the traders.  If I do not hear on
> Monday morning I will flag the two items and forward the comments on the
> rest of the agreement.
>
> Have a good weekend!
>
> Ann


FYI
---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/18/2001
03:00 PM ---------------------------
From: Amr Ibrahim@ENRON_DEVELOPMENT on 07/18/2001 09:16 AM
To: Richard Shapiro/NA/Enron@Enron
cc: Ban Sharma/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, James D
Steffes/NA/Enron@Enron

Subject:  Dr. Lay's Visit

Rick:

This is very good, and succinct, summary from Ban.  Notwithstanding his
analysis, I think that we are going to be there for a longer-than-desired
period, and Dr. Ley's visit should have been kept for a more opportune time.
Of course, I hope that I am wrong.

It follows that the likely way out shall be "renegotiation", "stabilizing",
then convergence with the arbitration route in "existing".

Best regards

AI

	Ban Sharma
	07/18/2001 08:44 AM

		 To: Amr Ibrahim/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
		 cc:
		 Subject: Dr. Lay's Visit

Amr,

There have been differing perceptions about Dr. Lay's visit. Some including
myself thought that it was a wasted effort, esp. so because just the day
after he left, the Government of Maharashtra called for a judicial probe
against Enron. The terms of reference of the probe are to be announced within
a month. A judicial probe is not only a bad way to respond to our efforts but
is also bound to postpone any fruitful negotiations. Its a bad signal esp.
for investors like us. It shows poorly about how the Indian polity works and
how misplaced their priorities are, esp. on crucial infrastructure related
issues.

Some of us were beginning to think that Dr. Lay's visit is bound to enthuse
the Central Government to act more positively and come with more likely
solutions, including a possible buyout. However, with a judicial probe being
announced even the Central Government is forced to re-think its strategy
twice before stepping in. Infact, it might be forced to take a back seat.

Internal discussion reveal that it was perhaps necessary for Dr. Lay to visit
senior officials just to send a signal that "Enron had tried its utmost to
thrash out a solution". If necessary another visit would be planned, just to
reiterate this. This they  feel would help in the long run, esp. when we
arbitrate, to drive home the message that we did use all our options to
arrive at a solution, unlike the government which just was not forthcoming.
What folks here also feel is that the "Chairman of the Company should
definitely come to check the boxes".

So perhaps strategically it might appear that the latter school of thought is
the right option but pragmatically sell out seems the only option left now.
The sooner the better. However, the way the judicial system works here, one
can only hope the Supreme Court respects our notice for arbitration in London
and  helps hasten the process.

Ban


Good afternoon -

I wanted to quickly follow-up to make sure everyone is aware of the new EPE Reconciliation Model's location and status. I just skimmed through the first 8 days of this month, and we show no variances between the Real Time El Paso model and our CARP report.

The reconciliation model can be found at:

	m:/Electric/Epe/Epe01/July01/July EPE Reconciliation

Please let me know if you have any questions.

Thanks,
Kate Symes
Real Time Trading Support
503-464-3939


Kyoto Spurned Is Mixed Bag for U.S. Firms --- Subsidiaries Abroad Will Have
to Abide by New Emissions Rules
The Wall Street Journal, 07/25/01
THE NATION FERC Scrutinizes Charges of Bias in Grid Controller Energy:
Davis-appointed panel that heads Cal-ISO violates U.S. law, critics say.
Remedies could include scrapping it.
Los Angeles Times, 07/25/01
Markets / Your Money Dreary Outlook Batters Stocks Markets: Disheartening
forecasts from AT&T, Amazon rattle Wall Street. Dow, Nasdaq post losses for
third session.
Los Angeles Times, 07/25/01
INDIA PRESS:Enron/MSEB Dispute Clouding Invest - Official
Dow Jones International News, 07/25/01

Rocca seeks Centre's intervention in Enron dispute
The Hindu, 07/25/01

Houston Energy Firm's Quarterly Income Is Up 60 Percent
KRTBN Knight-Ridder Tribune Business News: Houston Chronicle - Texas, 07/25/01
Dynegy's Telecommunications Unit Reports $20 Million Loss
Dow Jones Energy Service, 07/24/01
BANDWIDTH BEAT: Bandwidth Trading Isn't Dead Yet
Dow Jones Energy Service, 07/24/01

Economy
Kyoto Spurned Is Mixed Bag for U.S. Firms --- Subsidiaries Abroad Will Have
to Abide by New Emissions Rules
A Wall Street Journal News Roundup

07/25/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

The U.S. rejection of the Kyoto Protocol appears to give U.S. companies an
advantage over their foreign rivals, which would be forced to invest to
reduce greenhouse-gas emissions. But longer term, some U.S. companies could
find themselves less energy efficient in their domestic operations than their
overseas competitors.
U.S. multinationals seem resigned to the fact that their operations abroad
will need to conform to the Kyoto rules. Few sectors would be as affected by
curbs on carbon-dioxide emissions as the auto industry, whose cars and trucks
are one of the world's biggest sources of the gas. In Europe, the auto
industry, including units of the Big Three auto makers, already has signed a
voluntary agreement to cut 25% from 1995 levels of the amount of carbon
dioxide that the European industry's new vehicles belch out by 2008.
But in the U.S., most major auto makers continue to oppose calls by
environmentalists and rising numbers of politicians to force a similar result
by toughening the nation's automotive fuel-economy rule.
The Kyoto agreement, approved this week by 178 countries, but not by the
U.S., at a United Nations convention in Bonn, calls for industrial nations to
reduce their emissions to 5.2% below 1990 levels during an accounting period
that runs from 2008 to 2012. The accord must still be approved by
legislatures of at least 55 countries, representing more than 55% of
emissions from the industrialized world.
Foreign companies are hollering that they will have to abide by stiffer
environmental regulations than their U.S. rivals. "We could be placed at a
disadvantage to oil and gas companies operating in the U.S.," said Chris
Dawson, a spokesman for Petro-Canada, a Calgary, Alberta, integrated oil
company. "The markets must be open, and everyone must be operating on the
same playing field."
The Bush administration, which faults Kyoto for being too costly for U.S.
businesses, has promised to develop its own framework to reduce global
warming. Indeed, this week's approval of the Kyoto agreement raises the
possibility that a compromise regulatory regime can be worked out. Democrats
in Congress say that they will now mount a strong campaign to set up a U.S.
regime to regulate carbon dioxide, which could give the U.S. standing to
enter the Kyoto accord later. Secretary of State Colin Powell yesterday said:
"We are committed to working with all nations of the world to find a
consensus in the near future."
Although the European Union looks certain to ratify Kyoto, questions remain
over the commitment of some other key countries, especially Japan, whose
heavy industry could be hurt by Kyoto, especially compared with the U.S.
Japan was only dragged into the deal in Bonn after receiving concessions,
which reduced the cuts it will have to make in its emissions.
A big appeal that led to the original accord was that the parties to it can
engage in several types of international emissions trading, a concept
promoted for years by the U.S. before it abandoned Kyoto. The U.S. had been
expected to be the major buyer of such credits, especially from Russia.
Jonathan Pershing, who heads the International Energy Agency's environmental
division, estimated that the world trading market in emissions credits would
have been roughly $42 billion a year, including the U.S. Computer models, he
said, show the withdrawal of the U.S. would shrink the market and also drop
the demand price for Russian credits sharply, leaving annual trade among
nations at about $3 billion. Mr. Pershing believes U.S. companies may not be
able to use the market, at least initially. Later they may, he said, but
"maybe at a higher cost" of entry.
Some U.S. companies want the U.S. to rethink its position on Kyoto and gain
entry for its companies in the emerging market. "It would give us an
opportunity to get more mileage out of the capital we have to meet this
[climate change] challenge," said Thomas R. Jacob, a senior international
adviser for DuPont Co., which operates in 70 countries. DuPont is one of 36
multinational companies that have formed an alliance with the Pew Charitable
Trusts to support efforts to curb climate change and to express interest in
emissions-trading possibilities.
Enron Corp. -- which has a big trading operation, as well as utilities --
expects that Kyoto would offer it business opportunities. Those include, for
example, helping companies switch from coal to cleaner-burning natural gas,
and helping companies finance pollution-control equipment, said Jeff Keller,
Enron's director of environmental strategies. He believes the U.S.,
eventually, will join the group of signers.
Many European companies are already well on their way to meeting Kyoto's
targets. "We're way ahead of Kyoto," boasts Pasquale Pistorio, chief
executive of French chip maker STMicroelectronics NV. Increased energy
efficiency saved the company $40 million last year, he said, and STM has
targeted zero carbon dioxide emissions by 2010. STM takes advantage of a
Kyoto provision allowing it to plant trees, which reduce carbon dioxide in
the atmosphere, in order to offset the company's emissions.
In the United Kingdom, big oil companies BP PLC and Royal Dutch/Shell Group
were early supporters of Kyoto, and both companies subsequently declared they
would hew to the standards of the protocol even before it was passed. To
assist in achieving these reductions, the companies separately have set up
internal emissions-trading floors, where various company units can trade
credits.

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

National Desk
THE NATION FERC Scrutinizes Charges of Bias in Grid Controller Energy:
Davis-appointed panel that heads Cal-ISO violates U.S. law, critics say.
Remedies could include scrapping it.
RICARDO ALONSO-ZALDIVAR
TIMES STAFF WRITER

07/25/2001
Los Angeles Times
Home Edition
A-17
Copyright 2001 / The Times Mirror Company

WASHINGTON -- The Federal Energy Regulatory Commission appears headed for a
showdown with Gov. Gray Davis, perhaps as early as today, over political
control of the powerful nonprofit corporation that runs California's
electricity transmission grid.
Responding to an industry complaint that the grid operator lacks required
independence, FERC could immediately disband its governing board, which was
appointed by Davis. But several observers said Tuesday that such a
politically provocative step seems unlikely in the heat of summer. They
predicted the commission will find some other way, such as negotiations with
Davis, to address its concerns.
Most consumers know the California Independent System Operator, or Cal-ISO,
as the agency that declares power emergencies and schedules rolling
blackouts.
But the Folsom-based ISO is more than that: It functions as California's
electricity traffic controller, scheduling delivery of power to match
shifting demand throughout a service area that covers three-quarters of the
state. It is the fifth-largest entity of its kind in the world.
Under emergency legislation passed in Sacramento earlier this year, Cal-ISO
is now governed by a five-member board appointed by Davis, and there lies the
controversy.
Power companies have formally complained to FERC that Cal-ISO can no longer
be considered an unbiased player in the market, as federal rules require it
to be. They point out that the state, through the Department of Water
Resources, is now a major power buyer.
The industry fears that Davis might one day use his leverage over Cal-ISO to
deny access to the California market to sellers that fall from political
grace or don't deal with the water department on favorable terms.
Senior FERC officials agree that a conflict of interest exists. Previously,
Cal-ISO was governed by a board that represented a cross-section of interest
groups from industry to consumers. But that arrangement was widely considered
ineffective.
The issue is scheduled for consideration today at FERC's last meeting of the
summer. Agency sources said FERC's five commissioners are considering a wide
range of options, from ordering the current ISO board disbanded to postponing
a decision altogether.
New Board Could Be One Compromise
One middle-of-the-road proposal calls for negotiations and arbitration with
Davis and other interested parties, with the goal of creating a new Cal-ISO
governing board not directly answerable to the governor.
"The ISO is not independent," said a senior FERC official who asked not to be
identified. "There is ample evidence of that. The governor should not be
appointing the board.
"We believe the law is on our side," the official added. "But having the law
on your side may mean sending federal marshals. To some extent, this has the
flavor of a government takeover. Do you kick the doors in and install a new
board?"
Michael Kahn, a San Francisco lawyer appointed by Davis to head the Cal-ISO
board, indicated the state would be willing to negotiate.
"Precipitous intervention is not warranted," Kahn said. "We should try to
initiate some sort of dialogue to see if this can be resolved otherwise."
Added Kahn: "The generators and the marketers don't like the ISO because it
is independent of their interests."
In a legal brief submitted to FERC in May, the industry declared that it has
no confidence in the current setup and warned that doubts about Cal-ISO could
crimp needed investment in new power plants.
"The establishment of an independent [Cal-ISO] is vital to the long-term
resolution of California's energy problems and the stability of the entire
Western region," wrote Julie Simon, vice president for policy at the Electric
Power Supply Assn. "The continued influx of capital for new or expanded
in-state generation, the willingness . . . of out-of-state suppliers to sell
into the California market and the ability to seamlessly integrate
California's grid with other Western regional transmission organizations will
require that [Cal-ISO] function as an 'honest broker.' "
But Cal-ISO, she added, "has been transformed from an independent operator of
interstate transmission resources to a partisan advocate for the state of
California. . . . If the governor is dissatisfied with the [Cal-ISO] board,
he can appoint a new board."
Consumer advocates say that presents a problem for power marketers such as
Mirant Corp., Duke Energy Corp., Dynegy Corp. and Enron Corp., but not for
the public.
Differing Views on Panel's Role
"The ISO is finally operating in the public interest, and it drives these
companies nuts," said Mark Cooper of the Consumer Federation of America.
"FERC has continually complained that California is supposed to fix its own
problem. There is an ISO that appears to be working. So why would anybody
want to go and stir this up?"
However, Rep. Doug Ose (R-Sacramento) said the close link between the grid
operator and Davis has hurt California's credibility in the energy policy
debate.
"The purpose of that board is to run the transmission grid," Ose said. "You
can have a consumer representative, but you've got to have people who have
significantly greater experience running electric transmission."
Kahn, the Cal-ISO chairman, said the board has not tried to put itself in the
place of the professional staff running the grid. "ISO management has been
allowed to do what they want. There has been very, very limited interference
by the board. If FERC now wants to come in and micromanage the ISO, that
would be extraordinary."
A veteran Washington energy lawyer said he doubts that FERC will take such a
drastic step as dismissing the board appointed by Davis. Although the agency
appears to have the legal authority to do so, since federal law supersedes
state law, such a move would likely trigger a rhetorical backlash from Davis
and a lawsuit by the state.
"It is a red-hot issue, and this is the summer peak," said the lawyer, who
asked not to be identified. "You can make a pretty good argument that the
commission ought to take a crack at negotiating a way out of this."
Tension between FERC and Davis is likely to continue for months and spill
into other areas. For example, FERC wants the California grid to eventually
form part of a regional transmission network governed by a board that
represents the entire West. The governor wants the California grid to remain
under state control.
RELATED STORY
Edison rescue: Current rates give utility a little breathing room. C1

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

Business; Financial Desk
Markets / Your Money Dreary Outlook Batters Stocks Markets: Disheartening
forecasts from AT&T, Amazon rattle Wall Street. Dow, Nasdaq post losses for
third session.
From Reuters

07/25/2001
Los Angeles Times
Home Edition
C-4
Copyright 2001 / The Times Mirror Company

Stocks tumbled to 14-week lows Tuesday as dour forecasts from industry leader
AT&T and new mass layoffs at Lucent Technologies suggested the slump in
corporate profits is far from over.
Amazon.com also rattled Wall Street when the online retail giant said sales
could slow further amid feeble economic growth. The news ignited fears that
consumer spending is dropping and could undercut an economic rebound, money
managers said.
"It's a horrible market," said Rich Levy, head of block trading at CIBC World
Markets Inc. "No one's buying into this thing. People are tired of losing
money."
The Dow Jones industrial average tumbled for the third session in a row,
dropping 183.30 points, or 1.8%, to 10,241.12. The broader Standard & Poor's
500 index fell 19.38 points, or 1.6%, to 1,171.65.
The technology-laden Nasdaq composite index also dropped for a third straight
session, losing 29.32 points, or 1.5%, to 1,959.24, widening Monday's loss of
2%. Tuesday's swoon marked the lowest close for Nasdaq and the S&P 500 since
mid-April.
Stocks fell broadly across sectors. Only eight industry groups out of 107
tracked by S&P finished the day in positive territory, led by gold--a
traditional investment haven in troubled times.
More than two stocks fell for every one that rose on Nasdaq and the New York
Stock Exchange. Trading was active.
Amid the busiest week of the earnings reporting season, companies are unable
to predict when profits will turn up again.
Troubled telecom giant Lucent posted a loss and said it will cut its work
force by an additional 15,000 to 20,000 jobs. Lucent, the most heavily traded
stock on the NYSE, fell $1.47 to $6.43--a drop of more than 18%.
"When Lucent announces a layoff on top of previous layoffs, it shows there
are more recession-type strategies being used for survival purposes," said
Ned Riley, chief investment strategist for State Street Global Advisors.
Long-distance telephone and cable television giant AT&T said stiff
competition and weak prices in the long-distance phone market hurt profit,
and warned third-quarter revenue may fall. Its shares fell 59 cents to
$19.46.
Amazon.com helped lead Nasdaq lower after the online retail giant said sales
could slow further. The company posted a narrower-than-expected loss, but its
revenue disappointed. Amazon fell more than 24%, or $3.97, to $12.06.
Matters weren't helped any by Federal Reserve Chairman Alan Greenspan, who
told the Senate Banking Committee that the U.S. economy may not be out of the
woods yet. The warning echoed comments he made to the House Financial
Services Committee on July 18 during the first part of his twice-yearly
testimony on monetary policy.
The central banker hinted the Fed was open to the idea of more interest rate
reductions to shore up the economy on top of the six rate cuts the Fed has
engineered this year.
As senators grilled him on economic issues, Greenspan said changes in
monetary policy are still able to lift the economy. He also said inflation
remains tame.
Contrary to money managers' impressions, Greenspan said consumers were still
confident about the economy. He noted fallingenergy prices were boosting
corporate profits and putting more money into consumers' pockets.
Among Tuesday's highlights:
* Oil stocks slumped after reporting quarterly results as investors bet this
could be their last show of increased profits for some time as energy prices
decline. Exxon Mobil, the No. 1 U.S. oil company and a component of the Dow
industrials, posted higher earnings, thanks to lofty crude oil and natural
gas prices and robust profit from refining. Exxon dropped $1.53 to $40.97.
No. 2 oil company Chevron also slid, despite posting better earnings. Its
shares fell $2.46 to $85.18.
* Utility stocks fell sharply on expectations of lower power prices and
falling profit margins. The Dow Jones utilities average lost 3.5% and is down
nearly 10% during the last five trading sessions. Among the losers: Enron,
down $3.42 to $43.24; Dynegy, off $2.75 to $43; Calpine, off $4.25 to $33.90;
and Duke Energy, down $2.06 to $36.88.
* Fast food giant McDonald's, another Dow component, gained 62 cents to
$28.39 after reporting profit in line with Wall Street's forecasts, even as a
strong U.S. dollar and lingering concernsover "mad-cow" disease hurt
earnings.
* Gold stocks rose on a flurry of interest from disenchanted stock investors.
The S&P gold index rose almost 4% as Newmont Mining climbed 94 cents to
$20.64 andBarrick Gold gained 33 cents to $15.66.
Market Roundup, C6-C7

GRAPHIC-CHART: Daily Diary, Tuesday, July 24, 2001;
Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.

INDIA PRESS:Enron/MSEB Dispute Clouding Invest - Official

07/25/2001
Dow Jones International News
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW DELHI -(Dow Jones)- The dispute around Enron Corp.'s (ENE) Dabhol Power
Co. power project is impeding further foreign investments to India, reports
the Financial Express quoting U.S. Assistant Secretary of State for South
Asian Affairs Christina B. Rocca.
"This ongoing dispute casts a dark cloud over India's entire investment
climate," said Rocca. She hopes India's federal government would step in to
resolve the dispute between Dabhol and its sole electricity buyer, the
Maharashtra State Electricity Board.
Enron holds 65% of the 740 megawatt Dabhol project located in the western
Indian state of Maharashtra. Since May 29, Dabhol has halted operations
because MSEB stopped drawing electricity from its power plant saying the cost
of power was "unaffordable". Construction on the 1,444 megawatt Dabhol phase
II was stopped mid-June after MSEB refused to honor several of its bills.
Website: http//www.financialexpress.com

-By Himendra Kumar; Dow Jones Newswires; 91-11-461-9426;
himendra.kumar@dowjones.com

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

Rocca seeks Centre's intervention in Enron dispute
Our Special Correspondent

07/25/2001
The Hindu
Copyright (C) 2001 Kasturi & Sons Ltd (KSL); Source: World Reporter (TM) -
Asia Intelligence Wire

NEW DELHI, JULY 24. The United States today sought the Central Government's
intervention in the Enron imbroglio in view of its impact on the bilateral
investment climate.
The visiting U.S. Assistant Secretary of State, Ms. Christina Rocca said "the
ongoing dispute between the Dabhol Power Company and the Maharashtra
Government casts a dark cloud over India's entire investment climate."
While declining to offer a specific proposal for resolving the dispute
immediately, she maintained that it would be difficult for international
investors to view India favourably until the issue was resolved in a
"reasonable" manner. Ms. Rocca met the Union Power Minister, Mr. Suresh
Prabhu, on Monday apparently to discuss the issue.
Addressing a meeting organised by the Confederation of Indian Industry (CII),
she sought to highlight the three economic areas of special interest to
businessmen in both countries. These include the global trade regime, the
bilateral investment climate and intellectual property rights.
On the investment climate, she said the level of foreign direct investment
flows were much lower than they should be by any reasonable international
standards. She ascribed much of the problem to Enron from the point of view
of U.S. investors.
On the multilateral trade regime, Ms. Rocca described the World Trade
Organisation ministerial conference to be held in Doha in November as a
"terrific opportunity" to launch a new round of trade talks. It would help
India move towards an even more export-oriented innovative economy. Beyond
dealing with the "built-in" agenda on agriculture and services, Doha offered
the prospect of agreement that standard, sound trade rules would apply to
electronic commerce.
The U.S. official also focussed on the concern over the need for better
intellectual property rights in this country which would support India's
search for investment in the cutting edge knowledge-based sectors. The new
U.S. Trade Representative, Mr. Robert Zoelleck, is expected to discuss most
of these issues during his visit here early next month.
Ms. Rocca, who welcomed the Indo-U.S. dialogue in the private sector on IPR
in the IT, biotech and pharmaceutical sectors, felt problems still remained.
She urged India to adopt and enforce a patent law that met all WTO standards
on trade- related intellectual property or TRIPs as soon as possible. She
insisted that India did not provide product patent protection for medicines
and was a significant source of pirated items. It was for this reason that
India was on the U.S.T.R.'s Special 301 Priority Watch List.
She said there was need for progress in telecom liberalisation and on an open
sky civil aviation agreement to give an impetus to the already burgeoning
commercial cooperation.

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

Houston Energy Firm's Quarterly Income Is Up 60 Percent
Laura Goldberg

07/25/2001
KRTBN Knight-Ridder Tribune Business News: Houston Chronicle - Texas
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World
Reporter (TM)

Dynegy reported a 60 percent jump in net second-quarter income Tuesday,
fueled by strong power and natural gas sales.
Investors, however, reacted by lumping Dynegy in with energy stocks that took
a pounding in the day's trading.
Dynegy's quarterly net income rose to $146 million, up from $91 million a
year ago, while diluted earnings per share came in at 43 cents, up from 19
cents.
The year-ago earnings per share rose to 29 cents after excluding a special
dividend payment.
"I couldn't be happier with the way the core business is operating today,"
Chuck Watson, Dynegy's chief executive and chairman, said during a conference
call with analysts.
Dynegy beat analyst expectations. Those surveyed by Thomson Financial/First
Call projected Dynegy would make an average of 40 cents a diluted share.
But investors drove Dynegy's stock down. It closed at $43, off $2.75.
Other Houston energy companies got hit, including fellow trader Enron Corp.,
which closed down $3.42 at $43.24; natural-gas company El Paso Corp., which
closed down $4.26 at $47.64; and Reliant Energy's Reliant Resources unit,
which closed down $2.25 at $18.35.
Parent Reliant Energy only got nicked, closing at $28, down 37 cents.
The overall stock market had a down day, with the Dow closing off more than
180 points amid negative news from other corporate sectors.
Analysts offered several reasons for the energy sell-off, including concerns
over how California's energy conflicts will play out.
Energy companies and California failed to settle the state's claims that it
is owed billions for alleged power overcharges. The matter rests with the
Federal Regulatory Energy Commission, which may take up the issue today.
Also, Salomon Smith Barney analyst Raymond Niles on Tuesday downgraded a
number of energy stocks, although he remained positive on Enron and Dynegy.
Companies mostly or solely focused on electricity generation face more risks
when power prices decline, as has been the case recently. Dynegy and Enron
don't fit that profile.
Jeff Dietert, an analyst with Simmons & Company International in Houston,
described Dynegy's quarter as a solid one that "proves that they can make
money even when gas and power prices are falling." He added: "From my
perspective, Dynegy is in great shape for the second half of this year."
The market failed to distinguish between power producers and so-called energy
merchants such as Dynegy, said Carol Coale, an analyst with Prudential
Securities in Houston.
"I guess the big signal is that strong earnings performance doesn't seem to
matter in this market here," she said. "The whole message is that strong
earnings have very little impact on the sector right now."
The sell-off in the face of good earnings left officials at Dynegy
frustrated, said Chief Financial Officer Rob Doty, who was expecting the
market to be excited by the company's second-quarter performance.
Net income for Dynegy's marketing and trading unit rose 111 percent to $150
million in the second quarter, up from $71 million a year ago. Volumes of
natural gas and electricity sales in North America increased significantly.
Dynegy's online trading operation, Dynegydirect, helped boost those volumes
by handling transactions worth more than $11 billion for the quarter.
Since its launch in November 2000, Dynegydirect has handled almost $25
billion worth of transactions.
Dynegy's newly created global communications segment had a $20 million loss,
or 6 cents a share, in the quarter because of development costs and decreased
customer demand.
Dynegy estimates an annual loss of 13 to 16 cents for the segment, which is
focused on broadband marketing and trading.
The company hopes that the segment will make money by the second half of next
year.

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

Dynegy's Telecommunications Unit Reports $20 Million Loss
By Erwin Seba
Of DOW JONES NEWSWIRES

07/24/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Dynegy Inc.'s (DYN) telecommunications unit reported a
$20 million loss in the second quarter of this year, executives said Tuesday.
During the first six months of the year, Dynegy Global Communications lost a
total of $31 million.
In a conference call, Dynegy Chairman and Chief Executive Chuck Watson said
losses in the second half of the year aren't expected to exceed those of the
first half. For the year, telecom losses are expected to bring down corporate
earnings per share by 13 cents to 16 cents.
"There's been an obvious turndown since Dynegy entered in the market last
summer," Watson said. "We can't make a profit until our network is
completed."
Company officials attributed the loss to the cost of building Dynegy's global
telecommunications network.
But Watson said the company was in a better position than some of its energy
merchant competitors.
"We didn't beef up our personnel and assets, so we don't find ourselves in
the same position as others," he said.
The company has taken some steps to reduce its costs, however.
The global communications office in Vienna has been closed and its personnel
and operations have been moved to the unit's London office.
"We're keeping our head count flat," Watson said of the unit as a whole.
Company executives were patting themselves on the back throughout the
conference call for the strategy they followed, which is playing well in the
depressed telecommunications market.
Pat Marburger, president of Dynegy Broadband Trading and Origination, told
Dow Jones Newswires that the strategy was intended to reduce the company's
capital investment.
"We knew getting into it we wanted to invest very little capital, which
should give us a cost advantage right out of the chute," Marburger said.
As in energy, the company has emphasized alliances with other companies
instead of going it alone.
For example, earlier this year, Dynegy announced an agreement with Telseon
Inc. to use that company's points of presence in 18 of the largest U.S.
cities. "We could have done the same thing with $15 million over 18 months
time," he said.
He also said a $70 million investment in indefeasible rights of use for unlit
optical fiber from Level 3 was a good investment, even though the cost of
dark fiber has dropped along with bandwidth prices.
Although Dynegy has kept its broadband marketing and trading staff small,
both Watson and Marburger promised they'll have the people needed to handle
the bandwidth market.
About 30 people market bandwidth from the Denver office. And another group of
less than 10 people trades bandwidth, Marburger said. Most of those trades
are for infrastructure, he added.
Marburger expects the marketing group to grow to 50-60 people by the middle
or end of next year. He also expects the bandwidth market to recover within
two years.
The entire telecom unit employs about 300 people.
The company doesn't expect to reassign employees once the network is complete
at the end of this year, Marburger said. Enron Broadband Services (ENE)
reassigned employees and Williams Communications (WCG) laid off employees
after their networks were completed.
"Most of the network is being outsourced," he said.
A telecommunications industry analyst said the energy merchants were about
the only companies left that can invest in telecommunications.
"I think these upfront costs are going to result in some losses," said Rod
Woodward of Frost & Sullivan in San Antonio, Texas. "They're able to support
those losses with the way they are doing with their energy groups."
Overall, Dynegy Inc. reported net income of $142 million on operating revenue
of $10.8 billion for the second quarter of 2001, or recurring earnings of 43
cents per share.
In the second quarter of last year, the company reported net income of $91
million on operating revenue of $5.7 billion, or recurring earnings of 19
cents per diluted share.

-By Erwin Seba, Dow Jones Newswires; 713-547-9214; erwin.seba@dowjones.com

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

BANDWIDTH BEAT: Bandwidth Trading Isn't Dead Yet
By Michael Rieke
Of DOW JONES NEWSWIRES

07/24/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- An official with one of the largest telecommunications
carriers laughed last week, saying Enron Corp. (ENE) had been chased out of
the broadband business by a $102 million loss for the second quarter.
His laughter was probably premature. Enron is cutting expenses in its
broadband operation, but so is just about every other company involved in
that business, including the official's own employer.
At the same time, there are signs that energy companies haven't given up on
bandwidth trading.
For one, Dynegy Inc. (DYN), Aquila Energy Services (ILA), Koch Industries, El
Paso Corp. (EPG), Reliant Energy Inc. (REI), Goldman Sachs Group Inc. (GS),
Cable & Wireless PLC (CWP) and Global Crossing Ltd. (GX) have quietly formed
a consortium to work at improving connectivity needed for bandwidth trading.
Sources at those companies wouldn't confirm they were members of a
consortium. They've agreed to keep their work quiet. But other sources said
the group has had at least one meeting.
Companies like Sphera Optical Networks Inc., FiberNet Telecom Group (FTGX),
Universal Access Inc. (UAXS), LighTrade and Nortel Networks Corp. (NT) were
invited to the meeting to talk about what they could do to help firm
deliveries of bandwidth.
Tier-1 carriers - the largest carriers - were excluded, as consortium members
want to make it easier to trade in their markets, a broker said.
Creating Commodities

There's another sign that bandwidth trading isn't dead.
Steve Kamman, an equity analyst for CIBC World Markets, said in a research
note last week that carriers have started reselling backup circuits to third
parties, who buy them as unprotected circuits at big discounts.
"We've bought lines like that," said Sushil Nelson, general manager of Aquila
Broadband Services, the telecom unit of Aquila Energy Services (ILA). "We do
it with the carriers all the time."
Fully protected circuits - called Sonet rings - consist of two circuits
running between two cities. One circuit carries data, while the other serves
as a backup. Since the backup isn't used, it can be resold - as long as the
new buyer will accept the risk of getting bumped.
Many buyers don't need the full protection of a Sonet ring. Internet service
providers and many data users aren't providing critical services, so they can
put up with some outages, especially if it means lower prices.
Unprotected circuits became a standard offering on international subsea
routes this spring, when four large carriers began to offer them in response
to demand from customers. An official for one of those carriers said his
company started breaking up Sonet rings and selling unprotected circuits on
transatlantic routes early last year.
Selling the other half of a Sonet ring is a step toward commoditization of
capacity, Nelson said.
Buyers can build their own lower-priced Sonet rings, Kamman said. For
example, if a buyer wanted a protected circuit from New York to Los Angeles,
he could buy one unprotected circuit between the two cities, running through
Chicago. Because it's unprotected, the buyer gets it at less than half the
price of a protected circuit.
Then he buys another unprotected circuit between New York and Los Angeles,
running though Dallas. Again, he gets a discount. The two unprotected
circuits give him almost the same protection of a Sonet ring, but at a lower
cost. If he gets bumped off one, he can switch to the other.
Alternatively, the buyer can pick up some added revenue by reselling the
unprotected circuit he isn't using.
Taking Advantage Of Options

Such deals take advantage of options embedded in a network, Kamman said.
Buyers are taking the risk that they'll get bumped in exchange for a lower
price.
Such sales are good for the carriers. They've already paid the cost of laying
and lighting Sonet ring circuits. If they sell only Sonet rings, half their
circuits go unused. Now they can earn new revenue by selling the unused half.
Bandwidth trading opens eyes to new ways of doing business in telecom, Kamman
said.
"It's incredibly cool," he said. "Squeezing (the optionality) out of the
networks and turning it into a traded security is going to take some real
work. But there's no question at all that (it's) something very real."
-By Michael Rieke, Dow Jones Newswires; 713-547-9207; michael.rieke@wsj.com

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


Here's the pleading that will accompany Alan's affidavit.  We plan, at this
point, to send a cover letter with this saying that we will be sending our
responses to Hoecker's questions on Tuesday.  We need this additional time to
get the input of our commercial people.
---------------------- Forwarded by Mary Hain/HOU/ECT on 11/21/2000 03:02 PM
---------------------------

	Enron Capital & Trade Resources Corp.

	From:  "Ronald Carroll" <rcarroll@bracepatt.com>
11/21/2000 02:59 PM

To: <mary.hain@enron.com>, <smara@enron.com>
cc:
Subject: Comments on Nov. 1 Order

The attached is a first draft and no doubt will require editing in spots.
However, it should provide a conceptual basis for our discussion later this
afternoon.  Mary, I assume that you'll circulate.  See you in a few hours.
Ron

 - 0134240.01


Please see attached. Thank you.

Donna M. Cagle
Executive Administrator to President & CEO
Mariner Energy, Inc.
580 WestLake Park Blvd., Suite 1300
Houston, TX  77079
281/584-5511 (phone)     281/584-5515 (fax)
dcagle@mariner-energy.com

 <<Mtg. Notice to BOD - Exec..doc>>


Start Date: 4/10/01; HourAhead hour: 24;  No ancillary schedules awarded.
Variances detected.
Variances detected in SC Trades schedule.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001041024.txt

---- SC Trades Schedule ----
+++ Hour 24 - bad data from ISO.
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/10/01
  TRADING_SC: PGAE
  PNT_OF_INTRC: NP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 2
  DEAL_NO: 1


Attached is a resume of Debra Ruby who I have known for many years.  She is
currently looking for a position in Houston as a corporate attorney.  I can
personally recommend Debra for a variety of legal positions within Enron.  I
would appreciate it if you reviewed her attached resume and if you think
there may be a fit within your organization, please contact her directly.

Thanks for taking the time to look at her experience.


Chonawee,

As I have pointed out, short-selling the stock may be a bad
decision because of tax implications (ignoring the legal aspects).

Suppose the strike is $70 and you were granted an ATM option.
You  sell short at $70 ten lots (one lot  = 100 shares). The price goes to
$100.
You lose $30 x 1000 = $30,000 on your short position. Option exercise
gives you $30,000. This is before taxes. You pay taxes
on your option income (it's treated as ordinary income). The tax is
28% x $30,000 = $8,400. You can use only $3,000 of your loss against
ordinary income. This saves you only $840 in taxes.

Of course, if you have capital gains, you can use losses on your option
position
as an offset.

The remaining part of your capital loss  is carried forward and you get the
tax benefits over time (less the time value of money), assuming you have
income in the
future (or capital gains).

Not so good.

By the way, valuation and optimal exercise of employee stock options
is a very interesting and difficult problem.

Vince

Chonawee Supatgiat@ENRON
07/10/2000 11:40 AM
To: Stinson Gibner/HOU/ECT@ECT, Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: short-sell vs exercise

Below is my writing that was originally planned to post somewhere. It
explains how to handle a special type of call options which can be exercised
but cannot be sold. (As we know that it is never optimal to exercise a call
option before its maturity). However, after taking Vince's comments on the
ordinary income/capital loss TAX offsetting issue, I think this is not a good
article anymore. I guess I could just throw this article away. :-)
-chonawee

Short-selling is better than exercising your employee stock options

In general, the sensible time to exercise your employee stock option is when
you speculate that ENE is going down or its growth rate is extremely low. In
fact, when exercising the options, you are speculating that ENE would never
reach this point (plus interest) again during the 10 years maturity date or
until you leave the company. If you do not anticipate that, you should hold
on to your options because you can gain higher profit by delaying your
exercise.

However, if you believe that ENE is reaching its peak. Then, instead of
exercising the options, you should short-sell (or sell) the stocks in that
amount. After short-selling, when you feel that the stock starts to go up,
you can buy them back (to cover), make profit, and still keep the options. On
the other hand, if the stock does not go down as expect, you can exercise the
options to cover your short position anytime.

Let us take a look at a simple case where there are no taxes, no dividends,
and zero risk-free rate. Suppose that ENE follows a simple sample path as
follow

If you exercise 100 ENE options with a grant price of 45 when ENE reaches 70,
you would earn  (70-45)*100 = $2,500. But if you short sell 100 ENE at 70, no
matter how much ENE is in the future, you can exercise the options to cover
the short position and still earn (70-45)*100 = $2,500. The advantage of
short-selling comes when ENE at the period 2 is 60. At this point, you can
cover your short position, get (70-60)*100 = $1,000, and still keep your
options or you can exercise the options and gain $2,500. That is, you still
keep the flexibility of your options when you short-sell. In conclusion, the
only sensible time to exercise your employee stock options is to cover your
short position.


Terrific. Thanks
Lysa Akin|PDX|ECT wrote on 7/25/00 8:30 am:

>Given that the meeting is
>being held in No. VA., I will
>book travel for you in and
>out of Dulles.  Makes it nice,
>now you can fly non-stop!
>
>Lysa
>
>
>
> Enron Capital & Trade
>Resources Corp.From:  Mary
>Hain
>07/25/2000 08:25 AM
>
>
>To: Lysa
>Akin/PDX/ECT@ECT
>cc:
>Subject: Washington, DC
>Department Meeting
>
>Put on calendar, if not there.
>----------------------
>Forwarded by Mary
>Hain/HOU/ECT on
>07/25/2000 08:31 AM
>---------------------------
>To: Government
>Affairs-The Americas
>cc:
>Subject: Washington, DC
>Department Meeting
>
>As you all know, the next
>department meeting is being
>held in Washington, DC on
>Wednesday, September 13
>from 8:am-5:00pm.  The
>location of the meeting is
>noted below:
>
>The Ritz-Carlton
>Tysons Corner
>1700 Tysons Boulevard
>McLean, VA  22102
>Phone# 703-506-4300
>Guest Fax# - 703-506-2694
>
>I have a block of rooms
>reserved at the hotel and will
>need to know of your plans
>to attend.  Please let me
>know by Friday, August 11
>what your plans will be for
>this meeting.  I will be putting
>a rooming list together so,
>DO NOT CALL THE HOTEL
>DIRECTLY TO MAKE
>RESERVATIONS, I will be
>taking care of this.
>
>Also, there will be a dinner
>planned the evening of the
>12th.  If your schedule will
>permit you to arrive early
>enough for dinner, please let
>me know this as well.
>
>Thanks and please call me if
>you have any questions.
>
>gngr


Attached is the position statement that ECT sent to Mitsubishi today.  Matt,
if you haven't done so already, please consider giving Joe Hirl a call re
this and/or a copy of what we sent, assuming that neither you nor David see a
strategic downside to doing so.  Many thanks.(Deborah, please print out and
file.)

     Britt
----- Forwarded by Britt Davis/Corp/Enron on 08/07/2000 08:09 AM -----

	Eric Tan@ECT
	08/07/2000 03:43 AM

		 To: Matthias Lee/SIN/ECT@ECT
		 cc: "Clifford Bennett" <minton@singnet.com.sg>, Richard
Slovenski/SIN/ECT@ECT, Angeline Poon/SIN/ECT@ECT, Victor
Santos/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John Chismar/SIN/ECT@ECT, Carol
Chew/SIN/ECT@ECT, ngregson@wfw.com, Michael J Gasper/HOU/ECT@ECT, John H
Harrison/HOU/ECT@ECT, James P Studdert/HOU/ECT@ECT, Alan
Aronowitz/HOU/ECT@ECT, Michael Philips/HOU/ECT@ECT, Michael A
Robison/HOU/ECT@ECT, Harry M Collins/HOU/ECT@ECT, Graham Cane/LON/ECT@ECT,
Wietze Dingeldein/LON/ECT@ECT, Britt Davis/Corp/Enron@ENRON,
David.best@clyde.co.uk, Paul Henking/HOU/ECT@ECT, Li Yin Lim/SIN/ECT@ECT
		 Subject: Pacific Virgo - Freight/Demurrage

For your info - the message been sent to the Owners via the shipbrokers.
Will be sending via fax as well.

---------------------- Forwarded by Eric Tan/SIN/ECT on 07/08/2000 16:42
---------------------------

Eric Tan
07/08/2000 16:40
To: tankers@ssysin.com.sg
cc:
Subject: Pacific Virgo - Freight/Demurrage

To:    SSY, Singapore
 Attn:  John Dwane / Chris Twiss / Leo / Helen Cheo

Please convey to Owners of Pacific Virgo as follows:

As owners are aware, Enron has suffered considerable loss and damage arising
from the contamination of condensate loaded in good order and condition but
delivered contaminated.

It is clear that Mitsubishi, as time chartered owners, would not be now
claiming
freight or demurrage but for the contamination. There can be no argument about
this.  Since Enron is holding Mitsubishi fully liable for the contamination
according to the terms and conditions of the relevant charterparty, Enron
takes
the view that it does not have a liability to pay either the freight or
demurrage.  Should Mitsubishi disagree, Enron suggests that all disputes are
referred to arbitration pursuant to the relevant clause of C/P.  Enron will
almost certainly be commencing arbitration once the joint analysis results are
known in order to recover their losses which have not yet been fully
quantified.
We respectfully suggest that Mitsubishi reviews its entitlement to freight and
demurrage after the joint testing.

Please acknowledge.

Enron, Singapore


-----Original Message-----
From: 	Taylor, Michael E
Sent:	Wednesday, October 10, 2001 4:40 PM
To:	Woods, Trevor
Subject:	FW: updated

 -----Original Message-----
From: 	Taylor, Michael E
Sent:	Wednesday, October 10, 2001 3:51 PM
To:	Taylor, Michael E
Subject:	updated

[Trevor Woods]  get bob simbers info from guys here.
 -----Original Message-----
From: 	Woods, Trevor
Sent:	Tuesday, October 09, 2001 10:11 AM
To:	Taylor, Michael E
Subject:

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Thursday, September 6, 2001 1:57:53 GMT
Subject:

busy on sep 6

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Tuesday, June 5, 2001 2:52:52 GMT
Subject:

one of the coal guys will have this

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Tuesday, August 14, 2001 5:59:48 GMT
Subject:

set up some sort of meeting regarding urqhart structure:
engineering firm, pay for upgrades. technical services side, setting meeting with them.
Looking to sell put options.
10,000 tons each.
nov 15, 190
jan 15-170

Enron has right to put SCEG allowances at that price.

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Thursday, September 6, 2001 7:26:16 GMT
Subject:

Msg Sep 6

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Friday, June 15, 2001 7:41:41 GMT
Subject:

checking other sources b4 calling

not sure, we can email him

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, June 13, 2001 7:39:24 GMT
Subject:

703 Nox
5/15/2010
will get back with me, checking on various structures

remind me to call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, June 13, 2001 6:58:08 GMT
Subject:

msg 8-16

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, June 13, 2001 7:18:15 GMT
Subject:

233.7 T/NOx
Exp. 4/4/2010

call is very timely:
Hold some NOx and VOC ERCs, as well as some NOx DERCs
will know more around the end of the year (call back in Dec)

hold off, mark to send later

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Thursday, June 14, 2001 8:52:32 GMT
Subject:

msg 8-17

email to get info, be vague

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Tuesday, August 21, 2001 7:20:23 GMT
Subject:

509-943-6599
Theresa

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, August 22, 2001 7:18:11 GMT
Subject:

Syngenta	William Toth	281-474-5151
52 tpy NOx

msg 8-22

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, August 22, 2001 2:17:56 GMT
Subject:

Denise Tuck Haliburton:
Don't know yet.  Potentially interested.  Don't have substanital amounts, have some manufacturing facilities.  Not sure which side they'll be on.  Could look to sell in the next few months.

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, September 12, 2001 4:28:08 GMT
Subject:

Main Office Street Address:
Tucson Electric Power Company
One South Church Street
Tucson, Arizona 85701
Phone:
(520) 623-7711

Environmental
520-884-3673
Norma

Right Guy: message in
JOso x-3642
Demagi?

find info

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, August 22, 2001 1:44:13 GMT
Subject:

August 21, 2001
Individual Brokers, Environmental Brokerage Service:
John Vince:  Waste Management: Bay Area Quality management district: RECLAIM - unpaved roads:  paving a road is supple
800 tons of PM10 in Bay Area: 550 tons, only about 400 tons in bank, looking to double
60-260 tons at one landfill:
option payments up front, in advance of creating projects:
registering ghg reductions: on voluntary basis:   landfill gas:
Corporate engineering- Person
Looking at that on an individual matters, may have area VP or general consul
Director, Air Program
June 1st, run all LA vehicles on clean fuels:

call for info, let me know where he is.

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Thursday, September 6, 2001 7:27:04 GMT
Subject:

Msg Sep 6

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Thursday, October 4, 2001 7:44:34 GMT
Subject:

22.3: NOx ERCs-
Jeff Hildebrand:

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Tuesday, August 14, 2001 3:26:56 GMT
Subject:

msg 8-14

jay hatfield will have

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Wednesday, June 13, 2001 7:31:37 GMT
Subject:

133.6 NOx
12/7/2005

Henry Platt: Out
Deals with Emissions: 713-669-2945
registered a bunch of credits for DERCs
Do a permit by rule on the comperssion, if over 240 HP.  Alot of smaller units,

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Thursday, June 14, 2001 7:04:33 GMT
Subject:

msg in 8-17

call

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Thursday, June 14, 2001 6:06:04 GMT
Subject:

gave me
steve hawkes: emissions guy; 713-740-1859

call sh

--------- Inline attachment follows ---------

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=TWOODS>
Date: Friday, June 22, 2001 7:02:25 GMT
Subject:

 call


We have received the fully executed Non-Disclosure Agreement with the
referenced counterparty.  Copies will be distributed.


The next General Counsel Luncheon will be held on Tuesday, June 5, 2001 at Noon at the Redwood Grill, 4611 Montrose.  Please RSVP to Carolyn George at ext. 33439 if you will be able to attend.

Thank you,

Julia Heintz Murray
Managing Director and General Counsel
Enron Wholesale Services
Enron Industrial Markets LLC
1400 Smith Street, EB3838
Houston, TX  77002
(713) 853-4794
Fax:  (713) 646-3393
julia.murray@enron.com


Daren, I'm looking at S93481 for 01/00.  3,461 mmbtu was scheduled to Copano
P/L in 02/00 and the counterparty was paid.  In 05/00 the volumes were
reversed from this deal.  Would you be able to tell why they were reversed?
I'm trying to determine if this is a valid recoverable item.  Thanks.


What would you say if someone told you there is a way to conduct a meeting
with a group of people around the world without leaving your desk or even
picking up the phone?

How?  Simple:  eMeet.  For details on how to get together with your
colleagues for a focused discussion in eMeet, send an email to
ethink@enron.com.  You've simply got to start meeting like this.

This Thursday, July 20 at 10:00 a.m. Houston time, David Haug, Chairman and
CEO of Caribbean Basin, Enron Global LNG, and Enron Middle East will host
eSpeak.   David will discuss the recent arrival of the first LNG ship to
Puerto Rico and other current activities of Enron Caribbean Basin, Middle
East and Global LNG divisions.
Remember, if you cannot make the live event, visit the eSpeak site in advance
and pre-submit your questions.


Attached please find referenced list.  A few notes:

No physical power or credit derivatives for any of these Japanese
counterparties.  Re:  Bandwidth, as a general principle, what I'm hearing
from the bandwidth lawyers is (1) for Japanese counterparties they can only
trade the U.S. segment (which is currently the only segment we have online),
and (2) for right now, we have 1 Netherlands and 2 German counterparties on
the list, and they are still checking to get the scoop on those countries, so
for right now I am shutting them down for bandwidth.


&The future is something which everyone reaches at the rate
of 60 minutes an hour(whatever he does, whoever he be.8  - C.S. Lewis

Watch the Enron Building lobby on Tuesday, April 24th, from 11:30am to 1:00pm
for information on innovative and futuristic technology!

Featuring:
Dr. Peter Bishop, Professor and Chair of the Future Studies Graduate Program
at the University of Houston
Mr. Clay Anderson, Astronaut at NASA
Gadgets & Gizmos by Oxford Technologies
Robotic Display by Students from Yates High School

Special Afternoon Workshop - 1:30pm to 3:30pm
"Images of Enron in 20208 with Dr. Peter Bishop & Amy Oberg
Join Amy Oberg with EES and Dr. Peter Bishop, Chair & Professor of the
University of Houston's Future Program,
to imagine Enron in the year 2020.  Attendees will actively engage in this
participatory workshop with the final summary
to be shared with Mr. Skilling's office.  "Futures tools" will be utilized to
consider Enron's characteristics, culture,
businesses and the world environment and participants will explore how the
future might play out for Enron.
The results of this session will be shared with Mr. Skilling's office.  RSVP
to Jessica at x31918 - space is limited

Word of the Day
prescience \PREE-shuns; PREE-shee-uns\, noun:
Knowledge of events before they take place; foresight.


Laura,

I just spoke to Karen and she said that we are not going to do the pricing newsletter. There is going to be only one newsletter published (the one I have been doing so far) but we have to format it. I'll call you later today.

MOnika


See the attached regarding our discussions of yesterday with respect to the
ISDA contracts.  Generally, transfers of financial transactions will require
consents, and other than Duke, there is little value in "same counterparty."

Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas   77002-7361
(713) 345-7732 (phone)
(713) 646-3490 (fax)
mary.cook@enron.com


Steve:

During our chat I mentioned Amy Oberg was attending a competitive
intelligence conf.  I've pasted her Session Notes below.  I think you will
find them interesting - I've asked Amy to get on your calendar to discuss a
"CI 101" education project with you. This effort will help address some of
the concerns you raised.  As I mentioned she is currently working with eThink
to implement a global "Enron Edge" collection effort and I think the CI 101
project would dovetail very well.  Amy has other material available from the
conference when you need it.

Enjoy the notes - Pete

III. Session Notes: (sessions attended by A Oberg)

What Should You Tell Mgmt When They Ask About the Value of CI? Ben Gilad
? Case study, Levi Strauss: example of extremely damaging blindspots -
? Levi Strauss market value went from $14b to $8B in three years ('96-'99)
? Market share went from 48% ('90) to 25% ('98)
? Shut down 29 factories, laid off 16,000+ people in '98 as sales dropped 13%
? Blindspots = competitors - didn't know them (GAP, Calvin Klein, etc);
trends - didn't understand them (kids don't wear what their parents do, one
size does not fit all, etc)
? Cost for Levi's to set up really, really good CI function = $500,000
annually
? Cost for Levi's to call in consultants and problem still not solved =
$$850,000,000 !
? Case study, GE and Jack Welch: example of CI culture:
? Jack's greatest achievement (per Jack): "we made this company think outside
of itself". This is a CI culture.
? CI "is not a program, system, or function ---- it's a culture"
? "Intelligence is all about managing risk" (note: key element of Enron's
culture --- the two are intimately connected)
? "A junior level market analyst is not a BI/CI competency"
? CI professionals "paint the picture of the future" of the company; are
"guardians of the future"
? "CI/BI is the total knowledge a company possesses about the environment in
which it competes. It is synthesized from the vast amounts of bits and pieces
of external information bombarding the firm every day. It paints a whole
picture of the present and future competitive arena for management decisions."
? "This is what a competent CI program should deliver:
1. early warning of competitive threats
2. early identification of competitive growth opportunities
3. benchmarking of best practices
4. quicker response to market moves
5. better understanding of major players: customers, suppliers, politicians
6. future scenarios for strategic planning
7. accurate estimates for tactical decisions
8. improved development activities
9. identification of blind spots
? Bottom line "grand prize" = reduced risks, external focus, identification
of blind spots (yours and competitors)
? Peter Drucker, Forbes 1998: in the next 10-15 years, collecting outside
information is going t be the next frontier."

Building a True Intelligence Capability, Ben Gilad
? How competitive is your company? 1. Does it viscerally know its market? 2.
Can it predict reaction to its initiatives? 3. Is it blind?
? Numerous case studies of when CI could have been a "life saver" but was not
utilized - Sears (from #1 retailer in the world to #4 and dropping), Schwinn
(missed mountain bikes market), Goodyear (missed "ugly tire" market), others.
? #1 danger = competitive blind spots. Classic example: large companies pay
attention to other large companies; large companies hire large consulting
firms; large consulting firms learn from large companies, "and so on and so
forth until Chapter 11 do them apart"
? #2 danger = unchallenged assumptions. Classic examples: corporate myths,
corporate taboos
? Competitive intelligence is "any information that tells top management
whether or not the company is still competitive"
? The role of CI is "the guardian of company competitiveness"
? The CI process is "any organizational design that somehow ensures:
? That CI flows to one place (CI mgr as "weaver"; you see the forest, others
see the trees)
? That is turned into strategic updates
? That updates reach top mgmt regularly
? That top mgmt discusses, analyzes, debates, and does something w/ the
intelligence (key role of CI is to affect thinking, to change the Corp.
worldview)
? That the intelligence is used to uncover blind spots (regardless of how
holy they are)
? That the intelligence is used to empower employees (creating a culture of
sharing knowledge; tried tying $ to sharing, putting sharing in PD and
neither worked. What worked was recognition via feedback about what resulted
from their sharing)
? That the most "fearless, most observant, most out of the box thinker" in
the org becomes the Dir. of CI and then VP of Corporate Competitiveness
? That the CI Dir. reports to a powerful and eager exec
? That this exec is the CEO/President"
? Companies organize CI units in two different ways: CI as information center
(AT&T, Kraft, Kodak, McDonald Douglas, Ameritech, Dupont, Citicorp) or as
decision based intelligence (Motorola, Pfizer, Corning, NutraSweet, 3M,
Xerox, Marriott, Shell, IBM, others)
? Best Foods has "one of the best CI units today"
? Charge back of CI activities to units "doesn't work because if it costs,
units won't use it"
? Building awareness works - General Mills trained 120+ people about CI
? Bottom line: company needs to be competitively oriented, so awareness and
attitude are what count.
? Intelligence input should be mandatory across the organization
? Intelligence should be personally delivered once a week to the exec
committee
? "If you accept your role as that of passive competitor tracking, you'll be
collecting coupons till the end of time"

Successful CI = Impact, John Hovis
? "CI must be part of the company's strategic management system because ( it
lights up the targets"
? Case study of Avnet Inc. (note: John Hovis is Sr VP, Investors Relations &
Corp. Planning for Avnet)
? Evolution of Strategic Mgmt Process: Stage 1 (1997) = no research or
intelligence activities, little or no strategic planning;  Stage 2 (1998) =
limited library or research function, strategic planning a separate activity;
Stage 3 (1999) = intelligence system in place, strategic management function
fairly well developed; State 4 (2000) = comprehensive intelligence system in
place and working effectively with full integration; comprehensive strategic
management system in place and working effectively
? Tool: "SLAM" chart = strategic leverage matrix. Used among other analysis
techniques
? Strategic positioning of CI enables company to "play the game differently"
and produce "discontinuous innovation". Crucial.

CI Analysis: Get Real! Liam Fahey
? Competitor analysis (aka: "CA")
? CA driving questions: which competitors should we analyze? What should we
learn about them? How can we leverage CA to learn more about customers,
suppliers, marketplace changes, etc? How can we integrate CA into decision
making?
? CA principles:
1. Purpose: not to learn about competitors, but to enable thinking, decision
making, action
2. Always focus on the future
3. Insights are the value!
4. Focus analysis on assessments, insights, implications - and NOT on
description
? Strategy Domains: outwitting (thinking), outmaneuvering (doing), and
outperforming (results) - of current, emerging, and potential competitors
? Strategy Arenas: factors (suppliers, materials, HR, etc. channels
(distribution), end customers, institutions (political, legislative, courts,
etc.
? Which competitors to focus on?
? Which do we understand the least?
? Which has strategies most different to our own?
? Which are affecting strategic change?
? Which are failing?
? Which are potential harbingers of emerging / future marketplace?
? Competitor analysis framework: assets & capabilities, the organization,
firm in the environment, mind set
? Knowing current strategy is not enough - must identify future strategy
? Activity/value chain analysis must be future focused
? Identifying and assessing competitor's assumptions is extremely important
(as well as own)
? "We over estimate what we are and under estimate what we are not"

An Advanced Intelligence Training Model, Lenny Fuld, Ben Gilad, Jan Herring
? "Aha! Means intelligence, not data"
? Data = unconnected bits; information = knowledge built by looking at
several data points; intelligence = the implications of the organized
information.
? Each industry as its own set of key drivers for costs; a cost driver is an
extrinsic factor that affects costs; to analyze costs, you need to focus on
the right drivers (ex: cost drivers of PG&E, fixed asset intensive, highly
regulated)
? Question to determine cost drivers: is the competitor in the same
business?  - apples to apples
? Competitor analysis based upon Porter's Five Forces - barriers to entry,
suppliers, buyers, substitutes, rivalry
? Strategic options are those that fight the forces; reducing/fighting the
forces is the essence of competitive strategy; anything that doesn't, isn't
strategy
? CI's job is to watch all five forces
? 4 quadrant analysis: drivers, strategy, mgmt assumptions, capabilities
? 4 main CI questions every company needs to answer:
1. is the competitor happy? (w/ its strategy, position, etc. = degree of
complacency)
2. what are the competitor's likely moves (what should the competitor do?
What will the competitor likely do?)
3. what are the things your companies does that make the competitor really
mad? (their hot buttons - these will cost you a lot of $ if things go bad)
4. what are the competitors blindspots? (where strategy doesn't fit reality
any longer? If you know mgmt assumptions, you can know these)
? Parties that need CI = management as users, existing management procedures
(operations), selves (CI people)
? Types of KITS (key intelligence topic questions): strategic issues &
decisions (should be 40% of time), early warning topics (40% of time), key
players - competitors, customers, others (20% of time)
? Measuring CI/BI effectiveness: examples = time savings, cost savings, cost
avoidance, revenue increase, value added, combined values, other.
? "foster cultural acceptance of intelligence activities"

CI and the Web: What We Know about Knowledge Management Over Distance, Bruce
Kogut
? "Intelligence is more necessary now than ever before in business"
? Digitization of context
? Open sourcing - the Linux model: worked because of dislike of MicroSoft;
"gift giving" culture between developers, modular development of software
? CI and "digital anthropologists": web is changing the coordination of
space; control and ownership are not the same thing; social context is the
challenge.

Developing a Successful CI Program, John Prescott
? Review of recent APQC study on CI
? Some sponsors of study: Entergy, Southern, Shell
? Usually a "critical event" ("Big Bang") happens to the company before a CI
unit/function is initiated
? CI must be planted in the culture
? Key findings of study:
? CI structure emerges from Big Bang
? Need a well defined focus for CI
? Need a standardized process for CI
? Need a champion
? CI is a social process
? CI needs to be supported by technical processes
? Need to build trust and credibility to be effective
? French model of CI = human network; practiced by Concordia

Executive Roundtable: Moderator; Max Downham, former VP, NutraSweet;
Participants: Steve Necessary, CEO, PowerTV; William Maiola, VP, Coca Cola;
Michael Pticher, VP B2B Marketing, i2go.com, formerly Nat'l Sales Dir for
Bitney Bowes.
? Maiola: most useful intelligence is on emotions of competitor's decision
makers; Coke has done a lot of scenario development; "everyone is in the
intelligence business"; most appealing to executive users - what is your
hypothesis? what is your insight?
? Necessary: follow the 3 B's - be brief, be reliable, be gone; E strategy =
E competitive advantage.
? Pitcher: be sure to include in research  3 Ps: partnerships, people,
passions. These influence decisions; question to ask - is it a signal or is
it just noise?


yep.

	Nancy Sellers <Nancy.Sellers@RobertMondavi.com>
	12/12/2000 11:52 AM

		 To: "'Jeff.Dasovich@enron.com'" <Jeff.Dasovich@enron.com>
		 cc:
		 Subject: RE: Directions

We plan to leave here about 3 - will someone be around to let us in the
house?
-----Original Message-----
From:   Jeff.Dasovich@enron.com [SMTP:Jeff.Dasovich@enron.com]
Sent:   Monday, December 11, 2000 11:25 AM
To:     Nancy.Sellers@RobertMondavi.com
Subject:        Directions
Here's tel. number to the house.  And Star's coming to the party!  Check
for the wine's in the mail.
----- Forwarded by Jeff Dasovich/NA/Enron on 12/11/2000 01:24 PM -----

                    Jeff
Dasovich
                    Sent by: Jeff        To:     Cameron Sellers
<cameron@perfect.com> @
                    Dasovich             ENRON, "Scott Laughlin"
<scottwl@hotmail.com> @
                                         ENRON,
psellers@Haas.Berkeley.EDU
                                         cc:

                    12/11/2000           Subject:
Directions
                    01:23
PM

Telephone number at the house is 415.868.1254.
----- Forwarded by Jeff Dasovich/NA/Enron on 12/11/2000 01:22 PM -----

                    Jeff
Dasovich
                    Sent by: Jeff        To:     Cameron Sellers
<cameron@perfect.com> @
                    Dasovich             ENRON, "Scott Laughlin"
<scottwl@hotmail.com> @
                                         ENRON,
psellers@Haas.Berkeley.EDU
                                         cc:

                    12/11/2000           Subject:
Directions
                    01:02
PM

Can we do a little planning tonite for this weekend?

Cameron:
Here are the directions to the place in Stinson.  Can you email to your
invites?  Did you invite John E?
We have the place from 5 PM on Friday evening till 10 AM on Sunday morning.
Address:
11 Sonoma Patio
Stinson Beach
If you're coming from the City and take Panoramic over Mt. Tam, then when
you hit Highway One, make a right and head north toward town.  Go through
town and make a left on Calle del Arroyo.  If you see the lagoon on your
left, you've gone too far.  After making a left on Calle del Arroyo, make a
left on Sonoma.
If you're coming from points North, then you'll be heading south on Highway
One toward Stinson.  After you've passed the lagoon on your right, you'll
eventually come to Calle del Arroyo.  If you arrive in the town of Stinson
Beach, you've gone too far.  Make a right on Calle del Arroyo, then a left
on Sonoma.


I am OK with the language because of the use of the word "appropriate" before
"retail rate freezes".  However, in discussing this with Steven, it seems as
if IEP has not yet put some guidance around "appropriate."  I would like to
do so,  I suggest that IEP support a rate freeze solely for small customers
-- if necessary -- and a similar rate freeze or even a shorter-term rate
freeze for larger customers only as a last resort.  Do we need a call to
discuss this?

	"Katie Kaplan" <kaplan@iepa.com>
	11/20/2000 07:20 PM
	Please respond to kaplan

		 To: <knorton@mcnallytemple.com>, "'Greg Blue'" <gtbl@dynegy.com>, "'Joe
Ronan @ Calpine'" <joer@calpine.com>, "'John Stout for Reliant'"
<john_h_stout@reliantenergy.com>, "'Curtis Keebler at Reliant'"
<curtis_l_kebler@reliantenergy.com>, "'Julie @ Edson'" <jmball@ns.net>,
"'Karen Denne, Enron'" <kdenne@enron.com>, "'Bob Escalante at Constellation'"
<Bob.escalante@powersrc.com>, "'Paula Hall-Collins'"
<paula.hall-collins@williams.com>, "'Marty Wilson'"
<mwilson@pstrategies.com>, "'Rob Lamkin'" <rllamkin@seiworldwide.com>, "Karen
Edson" <kedson@ns.net>, "Bob Weisenmiller" <rbw@mrwassoc.com>, "Sue Mara"
<smara@enron.com>, "Andy Brown" <abb@eslawfirm.com>, "B Brown Andy"
<andybrwn@earthlink.net>, "Bob Escalante" <rescalante@riobravo-gm.com>, "Greg
Blue" <gtbl@dynegy.com>, "Jack Pigott" <jackp@calpine.com>, "Jan
Smutny-Jones" <smutny@iepa.com>, "Joe Ronan" <joer@calpine.com>, "Karen
Denne" <kdenne@enron.com>, "Karen Edson" <kedson@ns.net>, "Kassandra Gough"
<kgough@calpine.com>, "Kristin Vellandi" <kvellandi@pstrategies.com>, "Lynn
Lednicky" <lale@dynegy.com>, "McNally Ray" <rmcnally@mcnallytemple.com>,
"Paula Hall-Collins" <paula.hall-collins@williams.com>, "Richard Hyde"
<rwhyde@duke-energy.com>, "Rob L. Lamkin" <rllamkin@seiworldwide.com>,
"Stephanie-Newell" <stephanie-newell@reliantenergy.com>, "Tom Ross"
<tross@mcnallytemple.com>
		 cc: "Jan Smutny-Jones" <smutny@iepa.com>, "Steven Kelly" <steven@iepa.com>
		 Subject: Seeing the Light and Power Up language

Language referenced:

"Stabilize prices and protect consumers against rate spikes - by directing
utilities to diversify their energy supply "portfolios" with a prudent
balance of short- and long-term power contracts, and by extending
appropriate retail rate freezes until 2003.

Greetings:

Based on the responses we have received regarding the above language in the
Seeing the Light and Power Up documents; a consensus has been reached, with
one exception, to keep the language as it stands today and to continue to
circulate the documents as printed, in order to respond in a timely manner
to events such as the Governors press release.

This approach will enable us to also respond to Senator Peace's press
conference and another anticipated press conference by Governor Davis.

There were several suggestions to rephrase the sentence in the future
printing of documents in order to have more flexibility. We will continue to
look at alternative language and will make a decision for the next printing.

If there are any suggestions for language to replace this sentence please
forward them to me no later than COB Wednesday November 22.  We will then
circulate the new language for agreement.

Thank you for your attention to this matter and please let me know if you
have any questions.

Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499


Spoke to Carrie at the lawyer's office today.  Everything has been signed by
Mary and Carrie will mail me the originals to sign.  I asked about a
termination ont he $1500.00, Joal told Carrie that since we couldn't include
it in this agreement since we didn't agree to it in the meeting with Mary.
IF Mary agrees, they will prepare and addendum to the original agreement.
I've learned a lot and the sooner we are through with this lawyer the happier
I will be.  BE NICE NOW.


Cuiaba Pipeline - Joe Kolb reviewed the most recent Monthly Status Report and
is trying to confirm some information regarding potential construction during
the rainy season (November) due to the delays in the Ridges area.

Metgas Pipeline -  Joe Kolb completed review of final version of EMP and met
with Paul Perisho and how now issued EMP Approval memo.  Apparently there are
still a large number of hurdles to beginning construction in February '01.
They will not pursue hiring a project Env Mgr until they are more confident
of when the project will begin.

BMPs for Pipeline Construction - Bob Moss confirmed that Jerry Martin with
EE&CC has received the proposed pipeline BMPs for his personal or his staff's
review.  Joe has been unable to confirm EBS's interest/participation in
similar guidelines for fiber optic construction.

Capital Project EHS Flow Charts - Joe Kolb, Susan Worthen, and Bob Moss
discussed EE&CC's role in the environmental aspects of major capital project
development.  Joe will finalize the draft flow charts this week.

Recycling Committee - Joe Kolb obtained contacts with Houston Area Recycling
Council and David Ronkainen will be attending an upcoming meeting.  Wayne Lei
will provide us with info on PGE's recycling program.

ENEL, Nicaragua - Don Stevens and Mike Fuentes finalized the environmental
due diligence report for ENEL and distributed to the project team.  Estimated
environmental liabilities are $4.5 MM.

Quantitative Risk Module and Compliance Calendar - Don Stevens will meet with
Christine Dinh (Enron Net Works) on Friday to discus our IT project needs for
the risk module.  Gavin Dillingham will be on-hand to discuss the compliance
calendar.  Both projects have been on hold (for up to two months) due to the
lack of IT support.

Annual EHS Report - Susan Worthen continued to work through technical
difficulties this week that has impacted the anticipated debut of the
report.  She is currently drafting a project schedule for next year's report
to present internally and streamline the process to ensure a more timely
publication.

Safety Notices Issued - Russell Tucker issued a Safety Notice on the OSHA
final policy concerning treatment of voluntary employer safety self-audits
during inspections and the EPA final rule concerning access to off-site
consequence analysis information required by the RMP standard.

BCCA Economic Study - Marc Phillips received survey materials regarding the
Business Coalition for Clean Air (BCCA) economic study. He, with Cheryl
Dawson, are preparing information about the economic impact of the Houston
non-attainment regulations on the methanol plant.

TXOGA Pipeline Committee - Marc Phillips met with the Chair of the TXOGA
Pipeline Committee, Gwenyette Broussard with Equilon, and was informed that
Stan Horton had met with George Rootes, the CEO of Equilon, and discussed the
future of the TXOGA Pipeline Committee. They agreed to form a steering
committee to give direction to the pipeline committee activities.

Boiler and Heater MACT Regulations - Marc Phillips provided information to
chemical plant personnel regarding the boiler and heater Maximum Achievable
Control Technology (MACT) regulations that will be proposed this fall to
control formaldehyde emissions by 2005.

Texas "Grandfathered" Emission Sources - Marc Phillips met with John Shafer
(GPG), Bill Kendrick (GPG) and Tom Shelton (ENA) to discuss Enron's position
on the meetings the intrastate pipeline association is having with TNRCC on
grandfathered engines. Companies have the ability to obtain air permits for
grandfathered emission sources under a voluntary (VERP) program in Texas.
TXOGA is not involved in the meetings and does not support them. It was
agreed that more industry groups, including INGAA, should be involved in the
discussions.

Dabhol Power Plant Water Well Contamination - ThermoRetec continues to
conduct aquifer pump tests at selected monitoring wells to gather
characteristic data on the acquifer behavior to evaluate contaminant
transport.

Henry Van and Bal Wong are coordinating a trip to India to work with Dabhol
Management to develop an action plan for the groundwater issues and the EHS
Audits conducted to date (AD Little Safety audit, ENSR Environmental Audit
and Enron Operations Audit).  Expect to develop a workplan for Bal to
continue support Dabhol in the resolution of all issues at hand.

Ecolelectrica Air Compliance Issues - Marc Philips and Donnie Willmann met
with Ernesto Blanco and presented the plan for continue support to assist
in the resolution of NOV issues and prevent future NOVs.  Meeting went well
and all issues are understood as well as roles and responsibilities for
supporting
compliance.


---------------------
If you can not read this message go to http://www.enerfax.com

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


---------------------- Forwarded by David W Delainey/HOU/ECT on 11/07/2000
12:04 PM ---------------------------

robert.p.virgo@enron.com on 11/07/2000 11:15:18 AM
To: ddelain2@enron.com
cc:
Subject: Approval for reviewer

VIRGO,ROBERT   has suggested reviewers and submitted them for your approval.
You may review/modify this list of reviewers by logging on to PEP at
http://pep.corp.enron.com  and going to Supervisor Services.  Please
remember, no feedback can be completed on VIRGO,ROBERT   until you have
approved the list.


---------------------- Forwarded by Mike Carson/Corp/Enron on 06/23/2000
09:03 AM ---------------------------

"Pape, Travis" <tpape@satake-usa.com> on 06/23/2000 08:08:32 AM
To: Mike.Carson@enron.com
cc:

Subject: RE: Friday night

And it is on!

It's all about the he said, she said bullshit

-----Original Message-----
From: Mike.Carson@enron.com [mailto:Mike.Carson@enron.com]
Sent: Friday, June 23, 2000 6:19 AM
To: meridetk@kochind.com; tpape@satake-usa.com
Subject: Friday night

Are you guys up for a little guys night out tonight?? Call me 713-853-6203
or leave a message for me at home 713-668-3712.

MC


Richard,

 Are you available at 5:30 ET today?

Phillip


Please find attached the programs for two back-two-back conferences on real
options at Cambridge University in UK. The two conferences are separate but
complementary events. The first conference, co-sponsored with Andersen
Consulting and Morgan Stanley Dean Witter, on July 5-6, is a professional
conference on Real Options Valuation in the Information Economy:
Internet/High-tech/Telecom, R&D/Pharma, Energy. For info. and online
registration see www.rogroup.com.

The second is the 4th Annual International Conference on Real Options:
Theory Meets Practice (the annual industry event where academics and
practitioners get together to share the latest developments on theory and
applications), co-organized with U. Cambridge on July 7-8. For info. and
online registration see www.realoptions.org

Among the two events, we are pleased to present an extensive array of
practitioner and academic presentations, sharing of experiences by corporate
executives, and panel discussions by experts from leading organizations and
universities. Our keynote speaker this year will be Myron S. Scholes,
co-developer of the Black-Scholes option valuation.

Interested participants  must register for the conference (preferably on
line) and indicate hotel preferences (among 5-6 hotels)  by June 15
(latest).

We look forward to seeing you at this exciting event, and would appreciate
if you share this with interested colleagues.
 - CamJuly2000profconference.doc
 - Conf4program.doc


Celebrating the Army's Birthday! Chuck, and the other soldiers in Korea report that their morale is much improved by the change in headgear.

Do You Yahoo!?
Yahoo! Buzz Index - Spot the hottest trends in music, movies, and more .
 - beret.jpg


As a result of recent deregulation in states such as Pennsylvania and
California, many new companies are entering the retail energy market.  Today,
consumers in several states are able to choose their energy provider in much
the same way they choose their long-distance phone company.  A survey has
been commissioned by the research group to better understand which factors
are most important to consumers considering switching energy providers.

The survey consists of 28 question, and can be found on the following website:

http://www.energy-survey.addr.com/survey.htm

If you, your spouse, or someone else in your family has time to take this
survey, we would appreciate your input.

Feel free to forward this email to others.  Thanks for your time and
consideration.