Sheri,
We are going to NO for JazzFest at the end of April.  April 27th-29th to be
exact.  Let me know if you're going.
DG
---------------------- Forwarded by Darron C Giron/HOU/ECT on 02/20/2001
03:07 PM ---------------------------

From:  Sheri Thomas
  02/20/2001 09:13 AM

To: Darron C Giron/HOU/ECT@ECT, jennifer_lamprecht@oxy.com, Dawn C
Kenne/HOU/ECT@ECT
cc:
Subject: southwest.com weekly specials

Would you guys be in for an April b'day trip to New Orleans?  These flights
are dirt cheap.  Thought maybe just fly up late morning on a Sat and come
back Sun morning.  We need to move pretty quick though....

Sheri
---------------------- Forwarded by Sheri Thomas/HOU/ECT on 02/20/2001 09:10
AM ---------------------------

"Southwest Airlines" <special-offers-help@mail.southwest.com> on 02/20/2001
03:24:40 AM
Please respond to "Southwest Airlines"
<special-offers-help@mail.southwest.com>
To: "Special Offers" <special-offers1@mail.southwest.com>
cc:
Subject: southwest.com weekly specials

Southwest Airlines e-mail update for
February 20, 2001

****************************************************************
Your Freedom to Travel This Week Includes

I. $30 Each Way Anniversary Specials
II. southwest.com Click 'n Save(R) Specials
III. Other Discount Fare Special Offers Including
 Las Vegas $99/$119 Each Way Extended!
IV. Click 'n Save Subscriber Information

*****Southwest $30 Each Way Anniversary Specials******

I. $30 Each Way for 30 Markets (limited time, only)

This week's 30th Anniversary Specials
(for the following markets, only) are:

Albany, NY
 $30 each way to/from Baltimore Washington Int'l, MD

Albuquerque, NM
 $30 each way to/from Phoenix, AZ

Austin, TX
 $30 each way to/from Corpus Christi, TX

Baltimore Washington Int'l, MD
 $30 each way to/from Albany, NY
 $30 each way to/from Hartford, CT/Springfield, MA
 $30 each way to/from Long Island/Islip, NY

Birmingham, AL
 $30 each way to/from Louisville, KY

Boise, ID
 $30 each way to/from Salt Lake City, UT

Burbank, CA
 $30 each way to/from Oakland, CA

Chicago, IL  Midway
 $30 each way to/from Detroit, MI
 $30 each way to/from Indianapolis, IN

Corpus Christi, TX
 $30 each way to/from Austin, TX
 $30 each way to/from Houston, TX  Hobby

Dallas, TX  Love Field
 $30 each way to/from Oklahoma City, OK

Detroit, MI
 $30 each way to/from Chicago, IL  Midway

El Paso, TX
 $30 each way to/from Lubbock, TX

Harlingen/Rio Grande Valley, TX
 $30 each way to/from San Antonio, TX

Hartford, CT/Springfield, MA
 $30 each way to/from Baltimore Washington Int'l, MD

Houston, TX  Hobby
 $30 each way to/from Corpus Christi, TX
 $30 each way to/from New Orleans, LA

Indianapolis, IN
 $30 each way to/from Chicago, IL  Midway

Jacksonville, FL
 $30 each way to/from Tampa Bay, FL

Kansas City, MO
 $30 each way to/from Oklahoma City, OK

Las Vegas, NV
 $30 each way to/from San Diego, CA

Little Rock, AR
 $30 each way to/from Louisville, KY

Long Island/Islip, NY
 $30 each way to/from Baltimore Washington Int'l, MD
 $30 each way to/from Providence, RI

Los Angeles, CA
 $30 each way to/from Tucson, AZ

Louisville, KY
 $30 each way to/from Birmingham, AL
 $30 each way to/from Little Rock, AR

Lubbock, TX
 $30 each way to/from El Paso, TX

New Orleans, LA
 $30 each way to/from Houston, TX  Hobby

Oakland, CA
 $30 each way to/from Burbank, CA
 $30 each way to/from Ontario, CA

Oklahoma City, OK
 $30 each way to/from Dallas, TX  Love Field
 $30 each way to/from Kansas City, MO

Omaha, NE
 $30 each way to/from St. Louis, MO

Ontario, CA
 $30 each way to/from Oakland, CA
 $30 each way to/from Sacramento, CA

Phoenix, AZ
 $30 each way to/from Albuquerque, NM

Portland, OR
 $30 each way to/from Reno/Tahoe, NV

Providence, RI
 $30 each way to/from Long Island/Islip, NY

Reno/Tahoe, NV
 $30 each way to/from Portland, OR
 $30 each way to/from Salt Lake City, UT

Sacramento, CA
 $30 each way to/from Ontario, CA

Salt Lake City, UT
 $30 each way to/from Boise, ID
 $30 each way to/from Reno/Tahoe, NV

San Antonio, TX
 $30 each way to/from Harlingen/Rio Grande Valley, TX

San Diego, CA
 $30 each way to/from Las Vegas, NV
 $30 each way to/from San Jose, CA

San Jose, CA
 $30 each way to/from San Diego, CA

Seattle, WA
 $30 each way to/from Spokane, WA

Spokane, WA
 $30 each way to/from Seattle, WA

St. Louis, MO
 $30 each way to/from Omaha, NE
 $30 each way to/from Tulsa, OK

Tampa Bay, FL
 $30 each way to/from Jacksonville, FL
 $30 each way to/from West Palm Beach, FL

Tucson, AZ
 $30 each way to/from Los Angeles, CA

Tulsa, OK
 $30 each way to/from St. Louis, MO

West Palm Beach, FL
 $30 each way to/from Tampa Bay, FL

For a limited time, we have extended the
number of markets from 5 to 30.
The 30 markets will change each week,
so, please keep checking back.

The following restrictions will apply:

*21-day advance purchase
*Fares are nonrefundable
*Travel March 13, 2001 through May 23, 2001.
*Purchase beginning February 20 through
 February 22, 2001, midnight Pacific Time.

Fares do not include a federal excise tax of $2.75
that will be imposed on each flight segment of your
itinerary. A flight segment is defined as a takeoff and
a landing. The fares listed do not include airport-assessed
passenger facility charges (PFCs) of up to $18 roundtrip.

Please visit our Reservations section to reserve the
Southwest Airlines 30th Anniversary Specials at
http://www.southwest.com/

******* southwest.com Click 'n Save Specials********
II. In addition to the 30 markets for the Anniversary
Special, we have included the traditional
southwest.com Click 'n Save Specials.

The following restrictions will apply:

*21-day advance purchase
*Fares are nonrefundable
*Travel March 13, 2001 through August 4, 2001,
 except for May 25 and 28, 2001
*Purchase beginning February 20 through
 February 22, 2001, midnight Pacific Time

Albany, NY
 $64 each way to/from Chicago, IL Midway
 $59 each way to/from Cleveland, OH

Albuquerque, NM
 $62 each way to/from Las Vegas, NV
 $40 each way to/from Lubbock, TX

Amarillo, TX
 $61 each way to/from Houston, TX Bush Intercontinental
 $61 each way to/from Houston, TX Hobby
 $61 each way to/from Oklahoma City, OK

Austin, TX
 $60 each way to/from El Paso, TX
 $43 each way to/from Lubbock, TX

Baltimore Washington Int'l, MD
 $55 each way to/from Detroit, MI
 $34 each way to/from Manchester, NH
 $34 each way to/from Providence, RI

Birmingham, AL
 $60 each way to/from Cleveland, OH
 $45 each way to/from Tampa Bay, FL

Boise, ID
 $34 each way to/from Seattle/Tacoma, WA
 $34 each way to/from Spokane, WA

Buffalo, NY
 $64 each way to/from Nashville, TN
 $34 each way to/from Raleigh-Durham, NC

Burbank, CA
 $34 each way to/from Las Vegas, NV
 $34 each way to/from Phoenix, AZ

Chicago, IL Midway
 $64 each way to/from Albany, NY
 $66 each way to/from Hartford, CT/Springfield, MA
 $34 each way to/from Louisville, KY

Cleveland, OH
 $59 each way to/from Albany, NY
 $60 each way to/from Birmingham, AL
 $62 each way to/from Providence, RI

Columbus, OH
 $41 each way to/from Long Island/Islip, NY
 $62 each way to/from Tampa Bay, FL

Corpus Christi, TX
 $62 each way to/from Jackson, MS
 $40 each way to/from San Antonio, TX

Dallas, TX Love Field
 $59 each way to/from Harlingen/Rio Grande Valley, TX
 $36 each way to/from Little Rock, AR
 $36 each way to/from Midland/Odessa, TX

Detroit, MI
 $55 each way to/from Baltimore Washington Int'l, MD
 $62 each way to/from Omaha, NE

El Paso, TX
 $60 each way to/from Austin, TX
 $73 each way to/from Los Angeles, CA

Ft. Lauderdale/Hollywood, FL
 $34 each way to/from Jacksonville, FL
 $34 each way to/from Orlando, FL

Harlingen/Rio Grande Valley, TX
 $59 each way to/from Dallas, TX Love Field
 $65 each way to/from Jackson, MS

Hartford, CT/Springfield, MA
 $66 each way to/from Chicago, IL Midway
 $49 each way to/from Raleigh-Durham, NC

Houston, TX Bush Intercontinental
 $61 each way to/from Amarillo, TX
 $54 each way to/from Little Rock, AR

Houston, TX Hobby
 $61 each way to/from Amarillo, TX
 $54 each way to/from Little Rock, AR
 $36 each way to/from San Antonio, TX

Indianapolis, IN
 $45 each way to/from Kansas City, MO
 $55 each way to/from Omaha, NE

Jackson, MS
 $62 each way to/from Corpus Christi, TX
 $65 each way to/from Harlingen/Rio Grande Valley, TX

Jacksonville, FL
 $34 each way to/from Ft. Lauderdale/Hollywood, FL
 $43 each way to/from New Orleans, LA
 $34 each way to/from West Palm Beach, FL

Kansas City, MO
 $45 each way to/from Indianapolis, IN
 $36 each way to/from Tulsa, OK

Las Vegas, NV
 $62 each way to/from Albuquerque, NM
 $34 each way to/from Burbank, CA

Little Rock, AR
 $36 each way to/from Dallas, TX Love Field
 $54 each way to/from Houston, TX Bush Intercontinental
 $54 each way to/from Houston, TX Hobby

Long Island/Islip, NY
 $41 each way to/from Columbus, OH
 $55 each way to/from Louisville, KY

Los Angeles, CA
 $73 each way to/from El Paso, TX
 $45 each way to/from Reno/Tahoe, NV

Louisville, KY
 $34 each way to/from Chicago, IL Midway
 $55 each way to/from Long Island/Islip, NY

Lubbock, TX
 $40 each way to/from Albuquerque, NM
 $43 each way to/from Austin, TX

Manchester, NH
 $34 each way to/from Baltimore Washington Int'l, MD
 $68 each way to/from Nashville, TN

Midland/Odessa, TX
 $36 each way to/from Dallas, TX Love Field
 $57 each way to/from Tulsa, OK

Nashville, TN
 $64 each way to/from Buffalo, NY
 $68 each way to/from Manchester, NH
 $38 each way to/from New Orleans, LA

New Orleans, LA
 $43 each way to/from Jacksonville, FL
 $38 each way to/from Nashville, TN

Oakland, CA
 $44 each way to/from Portland, OR
 $49 each way to/from Salt Lake City, UT

Oklahoma City, OK
 $61 each way to/from Amarillo, TX
 $59 each way to/from San Antonio, TX

Omaha, NE
 $62 each way to/from Detroit, MI
 $55 each way to/from Indianapolis, IN

Ontario, CA
 $45 each way to/from Reno/Tahoe, NV
 $37 each way to/from San Jose, CA

Orlando, FL
 $34 each way to/from Ft. Lauderdale/Hollywood, FL
 $34 each way to/from West Palm Beach, FL

Phoenix, AZ
 $34 each way to/from Burbank, CA
 $34 each way to/from San Diego, CA

Portland, OR
 $44 each way to/from Oakland, CA
 $44 each way to/from San Jose, CA

Providence, RI
 $34 each way to/from Baltimore Washington Int'l, MD
 $62 each way to/from Cleveland, OH

Raleigh-Durham, NC
 $34 each way to/from Buffalo, NY
 $49 each way to/from Hartford, CT/Springfield, MA

Reno/Tahoe, NV
 $45 each way to/from Los Angeles, CA
 $45 each way to/from Ontario, CA

Sacramento, CA
 $54 each way to/from Spokane, WA
 $70 each way to/from Tucson, AZ

Salt Lake City, UT
 $49 each way to/from Oakland, CA
 $56 each way to/from Seattle/Tacoma, WA

San Antonio, TX
 $40 each way to/from Corpus Christi, TX
 $36 each way to/from Houston, TX Hobby
 $59 each way to/from Oklahoma City, OK

San Diego, CA
 $34 each way to/from Phoenix, AZ
 $34 each way to/from Tucson, AZ

San Jose, CA
 $37 each way to/from Ontario, CA
 $44 each way to/from Portland, OR

Seattle/Tacoma, WA
 $34 each way to/from Boise, ID
 $56 each way to/from Salt Lake City, UT

Spokane, WA
 $34 each way to/from Boise, ID
 $54 each way to/from Sacramento, CA

Tampa Bay, FL
 $45 each way to/from Birmingham, AL
 $62 each way to/from Columbus, OH

Tucson, AZ
 $70 each way to/from Sacramento, CA
 $34 each way to/from San Diego, CA

Tulsa, OK
 $36 each way to/from Kansas City, MO
 $57 each way to/from Midland/Odessa, TX

West Palm Beach, FL
 $34 each way to/from Jacksonville, FL
 $34 each way to/from Orlando, FL

Fares do not include a federal excise tax of $2.75
that will be imposed on each flight segment of your
itinerary. A flight segment is defined as a takeoff and
a landing. The fares listed do not include airport-assessed
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Please visit our Reservations section to reserve this
week's Click 'n Save Specials at
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*Scroll down to the Additional Information section for
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******** This is the Additional Information section********
Additional Information You Need to Know About All
of Our Sales:

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*Southwest specials are nonchangeable
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*Seats are limited and won't be available on some
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*Standby travel requires an upgrade to the
 full unrestricted fare.

********* Other Special Offers from Southwest**********
III. Coast to Coast is back!  Travel on Tuesday,
Wednesday, or Saturday for only $99 each way.  Travel
on Monday, Thursday, Friday, or Sunday for only $119
each way.  For more details, please visit us at:
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Also, we have 11 shorthaul markets to/from St. Louis
on sale for only $30 each way.  Please visit us, for
more information, at:
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********************Friends Fly Free! ***********************
Providence, RI to/from Long Island/Islip, NY $49 Each Way
Take advantage of the special offer by selecting
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and companion must fly together.  For more information,
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*******Las Vegas $99/$119 Each Way Extended!********
Purchase Las Vegas travel through March 15, 2001
Travel on Tuesday, Wednesday, or Saturday for only
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or Sunday for only $119 each way.
For details and additional information, visit us at:
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****************** Subscriber Information *******************
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Steve -- Here it is!   Let me know if you need additional information.   -Lisa
----- Forwarded by Lisa Yoho/NA/Enron on 03/06/2001 02:19 PM -----

	Cathy Phillips@ECT
	03/06/2001 02:18 PM

		 To: Lisa Yoho/NA/Enron@Enron
		 cc:
		 Subject: EGM presentation

Hi Lisa -

An electronic copy of the EGM Off-site presentation for Steve Kean is
attached below.  Please let me know if you have any questions.

Thank you.

Cathy P.
X-36898


Start Date: 1/18/02; HourAhead hour: 22;  HourAhead schedule download failed. Manual intervention required.


Louisiana Pacific,  Deal # 421598 is ramping down from 7 mw's to 2 mw's,
leaving us 5 long PGE deal # 268656.

The start of the ramp down is HE18 pst on 12/23, and will stay ramped down
through HE 2100 on 1/1/01.  They are returning to their full 7mw starting HE
2200 on January 1.

Real Time:

Please sell 5 mw's beginning HE 1800 on 12/23 through HW 2400 12/26. This is
Portland@Colstrip, deal #268656. Enpower accurately reflects this length.

on 1/1/01, sell the same 5 mw length, same deal number, from HE 0100 through
he 2100.

Preschedule: We will reduce our preschedule by the 5 mw's for 12/27 through
12/21, but will schedule the full 7 mw's for 1/1/01, at which time we will
need to remind real time that this length is there.


Placeholder.

"Thompson, Peter J." <peterthompson@akllp.com> on 12/21/2000 11:09:35 AM
To: "Kay Mann (E-mail)" <kay.mann@enron.com>
cc:

Subject: CA Development Exhibits

Do we need to include the information for Part B of Exhibit A-1 at this
time or should we just leave a placeholder?


Mark:

We are trying to set up your meeting in the PEP system and I need
confirmation on the list below as soon as possible.

Thanks!

Kathy Mosley

 -----Original Message-----
From:  Neal, Kathy
Sent: Tuesday, May 22, 2001 9:24 AM
To: Haedicke, Mark
Subject: PRC Committee Members - June 4, 2001 Meeting

Mark:

I would like to confirm that the following employees will be included in your
meeting scheduled for June 4th:

Alan Aronowitz
Barbara Gray
Jeff Hodge
Julia Murray
Travis McCullough
Elizabeth Sager
Richard Sanders
Lance Schuler
Mark Taylor
Sheila Tweed

Please let me know if I have not included someone that should be invited to
this meeting.

In this meeting we will discuss all exempt employees.

Thanks!

Kathy Neal-Mosley
HR Manager
Office:  (713) 345-7803
Cell:     (713) 819-6766
Pager:  (877) 547-6065


We need to chat about the following VNG deals.
420130,  543185,  and 543186


Please find attached our Weekly Report (26th January 2001) for your perusal
and information.

Regards,

Beverley


Team,

I have had a few conversations over the past couple of days with Terry
Brownrigg at Twister Gas Services, LLC and Todd Tharp with Sanguine, Ltd..
We transacted with Twister last week and I had sent you a credit worksheet
for the transaction.  Twister is a broker who transacts on behalf of small
E&P companies, and in this case, the E&P agreed to post the L/C we quoted for
the transaction.  After talking to Sara, it sounds like we are going to go
ahead and send a confirmation to Twister for the deal and attach to the
confirmation an assignment of the deal from Twister to Sanguine.  It is my
understanding that both Terry and Todd will need to sign both the
confirmation and the assignment, so I think we will need to carefully
coordinate the steps through the Confirmation Desk (Sheetal Patel).

I have attached a worksheet for the transaction (Sanguine agreed to post
$500K).  Please coordinate with Sara, Sheetal and me in getting this out.

The contact information at Sanguine is:
Todd Tharp
Manager of Gas Contracts
Sanguine, Ltd.
1861 East 71st Street South
Tulsa, Ok 74136

Thanks,

John


Mark:  Please, let's talk when you have a chance.  Thanks.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com
----- Forwarded by Sara Shackleton/HOU/ECT on 05/21/2001 11:04 AM -----

	Cheryl Nelson@ENRON
	Sent by: Cheryl Nelson@ENRON
	05/21/2001 11:00 AM

		 To: Sara Shackleton/HOU/ECT@ECT, Stephanie Panus/NA/Enron@Enron, Tom
Doukas/Enron@EnronXGate
		 cc: Keegan Farrell/NA/Enron@Enron
		 Subject: Re: Enron Corp./Enron Credit Inc. ("ECI") guaranty amendment
(increase from USD25 Million to USD100 Million) in favor of Bear, Stearns, et
al

Sara,

Moreover, Keegan represented to me that you requested that she locate for you
the Securities Loan Agreement for you while I was out and that she went into
my office and retrieved that document from my Enron Credit Inc. file and gave
it to you.  So, I am not sure of the source of confusion about not being able
to find my file but for future reference, the best thing to do is to ask
Keegan how to contact me immediately and directly - when out the office she
always knows how to reach me.

Cheryl Nelson
Senior Counsel
EB3816
(713) 345-4693
http://gss.enron.com/

	Cheryl Nelson
	Sent by: Cheryl Nelson
	05/21/2001 10:36 AM

		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Stephanie Panus/NA/Enron@Enron, Tom Doukas/Enron@EnronXGate
		 Subject: Re: Enron Corp./Enron Credit Inc. ("ECI") guaranty amendment
(increase from USD25 Million to USD100 Million) in favor of Bear, Stearns, et
al

Sara:

I will forward the documents to you.

For future reference, if anyone is looking for a file for an urgent matter
while I am out, she should convey that fact to me by either (1) leaving a
voice mail - as I checked my voicemails on Friday (that is how I was able to
speak with Tom from New York on Friday) or (2) advise Keegan and she will
contact me immediately by cell phone as she did regarding other matters on
Friday.

Cheryl Nelson
Senior Counsel
EB3816
(713) 345-4693
http://gss.enron.com/

	Sara Shackleton@ECT
	05/15/2001 03:45 PM

		 To: Cheryl Nelson/NA/Enron@Enron
		 cc: Tom Doukas/Enron@EnronXGate, Stephanie Panus/NA/Enron@Enron
		 Subject: Enron Corp./Enron Credit Inc. ("ECI") guaranty amendment (increase
from USD25 Million to USD100 Million) in favor of Bear, Stearns, et al

Cheryl:

I spoke with Clem and he is preparing the amendment for immediate execution
as the signers will be at an offsite tomorrow.  I'll let Tom know as soon as
the amendment has been executed.  Anna Meytina is on vacation so I left a
message with Sharon Chernick.

In order to complete our files with respect to the Enron North America Inc.
("ENA") Securities Loan Agreement, please provide me with copies of the
following documents:

(1)  assignment of the Securities Loan Agreement from ENA to ECI (or was a
separate agreement with ECI executed?)

(2) termination of the prior Enron Corp. guaranty on behalf of ENA in the
amount of  USD25 Million

I spoke with Stephanie and she could not locate your Bear/ECI files on Friday
of last week.

Thanks.

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


pls circulate to the group.  Thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 10/31/2000
05:35 PM ---------------------------

Kevin Hyatt
10/31/2000 12:38 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc:

Subject: Electric Developments

please distribute for your staff meeting
KH
---------------------- Forwarded by Kevin Hyatt/ET&S/Enron on 10/31/2000
12:37 PM ---------------------------

Jeffery Fawcett
10/27/2000 12:34 PM
To: Steven Harris/ET&S/Enron@ENRON
cc: Kevin Hyatt/ET&S/Enron@Enron
Subject: Electric Developments

I consulted with Kevin before I took the oars in trying to answer your
question, as well as the questions raised in Drew's e-mail.  Here's what we
found out...

Steve's question:

What economics would determine if a developer could site a power plant in New
Mexico (maybe 3,000MW) and build a line to the grid in California versus us
expanding to deliver the gas to a power plant in California?

What you're really asking here is "What are the comparative economics of
energy delivered by wire versus energy delivered by pipeline?"  In this
analysis, there are a few considerations -- (1) original capital cost to
construct facilities, (2) the operating cost of the facilities, including
energy loss, and (3) environmental and other permitting considerations.

 Engineers tell us that, as a rule of thumb, high voltage transmission lines
and tower facilities cost approximately $800,000 to $1MM/mile to construct
turnkey.  This figure is comparable to the $1MM/mile "rule of thumb" we use
for turnkey construction of mainline diameter (30-36") high-pressure steel
pipeline.

In terms of operating costs, for anything over 100 miles in length, there are
three (3) basic sources of energy loss in electric transmission: (1)
transformation loss, (2) radiation loss (EFM) and (3) heat loss across the
conductors.  A rule of thumb for electric transmission loss is 3%.  This
number is comparable to the actual fuel used for compression on
Transwestern's pipeline.

The most critical issue impacting construction of high voltage transmission
lines is in the area of permitting.  There just aren't many new transmission
lines being approved.  It was suggested by more than one source that an
electric transmission project on the order posited in your example, could
take anywhere from 6 to 10 years to secure authorization.  The issues of
electromagnetic field (EMF) radiation around high voltage power lines, along
with other wildlife endangerment concerns, are significant obstacles in
securing permits for right-of-way.

In short, the answer is that while the economics on face appear to be
comparable for construction and operation of both natural gas pipelines and
electric transmission lines, the protracted permitting process for electric
transmission lines tips the scale considerably towards the more immediate
returns available on investment in natural gas pipeline infrastructure.

Drew's questions:

1. What are the key factors that determine where a power plant developer puts
his plant?

For purposes of this exercise, I'm assuming we're talking gas-fired
generation.  Developers generally describe four considerations in deciding
where to site a new electric power plant:
 1. Market area demand (distributive) and/or Transmission access to market
 2. Water rights for turbine cooling
 3. Ease of permitting (environmental, encroachment, fed/state/local
regulations, affected agencies/jurisdiction)
 4. Proximity to natural gas pipeline/supply infrastructure

2. Do the transmission access and pricing rules of the various
utilities/power pools vary all that much or are Order 888 tariffs pretty much
the same all over?

FERC Order 888 and 889 require public utilities to commit to standards of
conduct and to file open access tariffs affecting transmission among and
between other utilities and/or power pools in the various operating regions.
FERC ordered public utility transmission owners to provide transmission
access and comparable service to competitors and to functionally separate
their transmission/reliability functions from their wholesale merchant
functions. The rulemaking is analogous to the open access requirements under
FERC Order 436/500/636 affecting interstate natural gas pipelines.  It's
pretty obvious from the California example this past summer, that with
respect to the overall operation of a deregulated power market in individual
states, particularly as concerns the establishment and regulation of
Independent System Operators (ISO's), there is substantial room for
improvement (and possible further FERC involvement).

"In the open access final rule (Order No. 888), the Commission issues a
single pro forma tariff describing the minimum terms and conditions of
service to bring about this nondiscriminatory open access transmission
service.  All public utilities that own, control, or operate interstate
transmission facilities are required to offer service to others under the pro
forma tariff.  They must also use the pro forma tariffs for their own
wholesale energy sales and purchases.  Order No. 888 also provides for the
full recovery of stranded costs--that is, costs that were prudently incurred
to serve power customers and that could go unrecovered if these customers use
open access to move to another supplier."

3.  How do IPP's decide what fuel supply strategy works best (i.e., buy
bundled delivered fuel from someone vs. buy gas, storage, transport, etc.
separately)?

In my experience, there is no "one size fits all" formula or strategy.  For
example, in the past we've seen Calpine take a very hands-on approach to
supplying its IPP projects.  In the mid to late '80's, during the build out
of several QF's (cogens), Calpine bought natural gas reserves in the ground
and dedicated them to the project.  In today's market, Calpine has scavenged
the gas and basis traders from Statoil and set-up a natural gas desk for the
purchase and transportation management of gas supplies needed for its western
U.S. power projects.  In other projects, developer/owners and their lenders
are satisfied with a less active role in securing gas supply/transportation
to the project.  In short, projects look at the liquidity of the gas supply/
transportation market in deciding whether they can achieve project economics
and secure reliable supply by taking bids or RFP's for gas
supply/transportation, or whether to take a more hands-on approach ala
Calpine.

4.  What is the RTO Rule and why should we care?

Last December, the FERC issued Order No. 2000, a final rule on Regional
Transmission Organizations (RTO's).  Order 2000 builds on the foundation of
Orders 888 and 889 (issued in 1996).  According to FERC Chairman Jim Hoecker,
Order 2000 makes "a persuasive case for separating control of grid operations
from the influence of electricity market participants."  Therefore, Order
2000 can be seen as a natural outgrowth of the perceived limitations on the
functional unbundling adopted in Orders 888 and 889, continuing balkanization
of the electric transmission grid based on corporate, not state or regional
boundaries, as well as pressure to provide guidance on acceptable forms of
privately-owned transmission companies.

FERC prescribes a voluntary approach to RTO participation.  The order
initiates a regional collaborative process to foster RTO formation.  The
Order also imposes filing requirements on the privately owned "public
utilities" that are subject to FERC jurisdiction, and requires these private
utilities to describe in their filings how they have attempted to accommodate
the needs of transmission owning state/municipal, cooperative and federally
owned systems.  FERC believes that, regardless of format, RTO's will offer
the following benefits: (1) alleviate stress on the bulk power system caused
by structural changes in the industry, (2) improve efficiencies in
transmission grid management through better pricing and congestion
management, (3) improve grid reliability, (4) remove remaining opportunities
for discriminatory practices, (5) improve market performance, (6) increase
coordination among state regulatory agencies, (7) cut transaction costs, (8)
facilitate the success of state retail access programs, and (9) facilitate
lighter-handed regulation.

Critics point out that with its emphasis on flexibility, voluntary RTO
formation and transmission rate reforms (i.e., incentives), Order 2000 defers
for case-specific disposition many of the tough issues that must be resolved
in order to create an operational RTO.   Moreover, Order 2000 does not compel
any transmission owner to join an RTO, but provides only regulatory guidance
and incentives for willing participants, as well as a veiled threat of
further consequences for the hold-outs.

As to the final part of the question ("why should we care?"), presumably, the
development of a fully-functioning RTO network will promote both the
efficiency and market transparency goals of the original FERC orders.  As
FERC reads it, the future of gas-fired generation for both merchant and
utility systems, depends on an efficiently operated open access transmission
system.  Therefore, the promise of the RTO is to stimulate competition and
the ongoing investment in new generation infrastructure.  Unfortunately,
sources tell me that the voluntary nature of the RTO program may ultimately
cripple its effectiveness in meeting its stated goals.

5.  Has $5/mmbtu gas killed the gas fired power market?

Natural gas prices of $5/MMBtu can only "kill" gas-fired power plants in
those instances where (1) there are more economical alternatives to natural
gas fuel, (2) demand for electric power is offset through demand side
management or (3) natural gas in an environment of short supply is expressly
prohibited from use as a power plant fuel.  In the Western U.S. marketplace,
particularly in California, I see no viable alternative to natural gas fuel
for electric power generation.  Renewable resources currently meet less than
5% of the total electric resource requirements.  $32/barrel oil prices give
fuel oil no clear economic advantage over natural gas (even at a $5/MMBtu
price).  Moreover, California environmental and permitting regulations make
the installation of new electric generation based on anything other than
natural gas fuel or renewable resources virtually impossible.   While demand
side management programs are the politically correct approach to meeting
resource needs, historically, they have served only a minor role in
offsetting the growth in electric power.  As to the final point, I'm unable
to comment on the risk of future legal/regulatory restrictions governing the
use of natural gas as a boiler or turbine fuel.

Steven Harris
10/26/2000 10:05 AM
To: Kevin Hyatt/ET&S/Enron@Enron
cc: Jeffery Fawcett/ET&S/Enron@ENRON

Subject: Re: Electric Developments

Since you are the "expert" in this area, I need to know what economics would
determine if a developer could site a power plant in New Mexico (maybe
3,000MW) and build a line to the grid in California versus us expanding to
deliver the gas to a power plant in California. If you could let me know by
next Friday I would appreciate it.

Kevin Hyatt
10/25/2000 04:32 PM
To: sharris1@enron.com
cc:

Subject: Electric Developments

Steve, see below.  Drew asked me to help him out with his meeting.
kh

---------------------- Forwarded by Kevin Hyatt/ET&S/Enron on 10/25/2000
04:34 PM ---------------------------

	Enron Energy Services

	From:  Drew Fossum                           10/25/2000 01:49 PM

To: Dari Dornan/ET&S/Enron@ENRON, Lee Huber/ET&S/Enron@ENRON, Tony
Pryor/ET&S/Enron@ENRON, Maria Pavlou/ET&S/Enron@ENRON, Susan
Scott/ET&S/Enron@ENRON, Jim Talcott/ET&S/Enron@ENRON, Kathy
Ringblom/ET&S/Enron@ENRON
cc: Michael Moran/ET&S/Enron@ENRON, Kim Wilkie/ET&S/Enron@ENRON, Kevin
Hyatt/ET&S/Enron@Enron, John Dushinske/ET&S/Enron@ENRON, Shelley
Corman/ET&S/Enron@ENRON
Subject: Electric Developments

When we originally decided to use my staff meetings for "graduate education"
one of the hot topics was the electric industry.  We all had a first lesson
on this topic in Shelley's electricity seminar last summer.  Now, John and
Kevin have graciously agreed to join us Tuesday at 1:30 to discuss recent
developments in electric markets and NN's and TW's efforts to attract power
generation load to the system.  Specific topics I hope to cover include the
following:
1.  What are the key factors that determine where a power plant developer
puts his plant?
2.  Do the transmission access and pricing rules of the various
utilities/power pools vary all that much or are Order 888 tariffs pretty much
the same all over?
3.  How do IPPs decide what fuel supply strategy works best (i.e., buy
bundled delivered fuel from someone vs. buy gas, storage, transport, etc.
separately)?
4.  What is the RTO Rule and why should we care?
5.  Has $5/mmbtu gas killed the gas fired power market?
 Depending on how deeply we get into these topics, we may need to schedule a
follow-up session at a later date.  I look forward to seeing you on Tuesday.
DF


print
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/23/2000
03:34 PM ---------------------------

	From:  Eloy Escobar @ ENRON                           10/23/2000 03:00 PM

To: Jennifer Fraser/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT
cc:
Subject: October 23, 2000 Issue of Petroleum Refining Weekly.e

---------------------- Forwarded by Eloy Escobar/Corp/Enron on 10/23/2000
02:59 PM ---------------------------

"DigestNET" <DigestNET@mail.hydrocarbonpublishing.com> on 10/23/2000 02:59:31
PM
Please respond to <DigestNET@mail.hydrocarbonpublishing.com>
To: <DigestNET@mail.hydrocarbonpublishing.com>
cc:

Subject: October 23, 2000 Issue of Petroleum Refining Weekly.e

--
Regards,

Publication Department/DigestNET
Hydrocarbon Publishing Company

--

 - WK1023.pdf


We need to meet with, in this order, Brian Barth,Travis McCoullough,Kevin
McConville and John Hopley. Lisa Mellencamp may also want to attend the
meetings with the attorneys from Millbank.
---------------------- Forwarded by Richard B Sanders/HOU/ECT on 01/25/2000
09:05 AM ---------------------------

RTellis@milbank.com on 01/18/2000 12:06:23 PM
To: Richard B Sanders/HOU/ECT@ECT
cc:
Subject: Houston Trip

Richard, contrary to my previous e-mail, Steve is no longer available for a
2/4 meeting in Houston.  The available dates are now:  2/2, 2/7, 210, &
2/11.

Please let me know what date works for you.

Thanks.

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 - att1.htm