The information contained herein is based on sources that we believe to be
reliable, but we do not represent that it is accurate or complete.  Nothing
contained herein should be considered as an offer to sell or a solicitation
of an offer to buy any financial instruments discussed herein.  Any
opinions expressed herein are solely those of the author.  As such, they
may differ in material respects from those of, or expressed or published by
on behalf of Carr Futures or its officers, directors, employees or
affiliates.  ? 2001 Carr Futures

The charts are now available on the web by clicking on the hot link(s)
contained in this email. If for any reason you are unable to receive the
charts via the web, please contact me via email and I will email the charts
to you as attachments.

Crude     http://www.carrfut.com/research/Energy1/crude27.pdf
Natural Gas     http://www.carrfut.com/research/Energy1/ngas27.pdf
Distillate     http://www.carrfut.com/research/Energy1/hoil27.pdf
Unleaded     http://www.carrfut.com/research/Energy1/unlded27.pdf

Dec WTI/Brent Spread
http://www.carrfut.com/research/Energy1/clz-qoz.pdf
Dec Heat Crack     http://www.carrfut.com/research/Energy1/heatcrack.pdf
Dec Gas Crack     http://www.carrfut.com/research/Energy1/gascrack.pdf
Dec/May Heat Spread     http://www.carrfut.com/research/Energy1/hoz-hok.pdf
Jan/Feb Heat Spread     http://www.carrfut.com/research/Energy1/hof-hog.pdf
Nov Gas/Heat Spread     http://www.carrfut.com/research/Energy1/hux-hox.pdf
Dec Gas/Heat Spread     http://www.carrfut.com/research/Energy1/huz-hoz.pdf
Nov/Mar Unlead Spread
http://www.carrfut.com/research/Energy1/hux-huh.pdf

Nat Gas Strip Matrix
http://www.carrfut.com/research/Energy1/StripmatrixNG27.pdf
Nat Gas Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixNG27.pdf

Crude and Products Spread Matrix
http://www.carrfut.com/research/Energy1/SpreadmatrixCL27.pdf

Scott Oblander
312-762-1015
312-762-1014 fax
Carr Futures
150 S. Wacker
Suite 1500
Chicago, IL 60606


---
--- casey415@earthlink.net
--- EarthLink: It's your Internet.

 - Dsc00017.jpg


This is an ECM deal which is supposed to fund Thursday, Sept. 30.  Would
someone please review the tax rep modifications?  We just received the
attached at 5:45 pm this evening.  Thanks.  SS
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 09/29/99 06:17
PM ---------------------------

"Loan-Anh Tran Kao" <lkao@mayerbrown.com> on 09/29/99 03:56:33 PM
To: Sara Shackleton/HOU/ECT@ECT
cc:
Subject: Fwd:Schedule to the Master Agreement/ Barclays/ ISDA

Loan-Anh Tran Kao
Mayer, Brown & Platt
(713) 547-9684

____________________Forward Header_____________________
Subject:    Schedule to the Master Agreement/ Barclays/ ISDA
Author: Loan-Anh Tran Kao
Date:       9/29/99 3:47 PM

Per Quan Vu's request, attached is the revised Schedule to the Master
Agreement
marked against the version distributed by Enron.  Also attached is a clean of
the same.

Please call me if you would like to discuss the changes as Quan will be at
Enron
for the rest of the afternoon.

Regards.

Loan-Anh Tran Kao
Mayer, Brown & Platt
(713) 547-9684

 - 24377038.WPD
 - 24376908.WPD


Jan,

FYI, Kim.

 -----Original Message-----
From: 	Bodnar, Michael
Sent:	Friday, February 01, 2002 11:20 AM
To:	Blair, Lynn; Donoho, Lindy; Giambrone, Laura; Hanagriff, Richard; Harris, Steven; Hernandez, Bert; Kowalke, Terry; Lindberg, Lorraine; Lohman, TK; Lokay, Michelle; McConnell, Mark; McEvoy, Christine; Miller, Beverly; Minter, Tracy; Moore, Jan; Mulligan, Amy; Schoolcraft, Darrell; Ward, Linda; Watson, Kimberly; Y'barbo, Paul
Subject:	TW PNR BILLING DETAIL

Attached is an Excel workbook detailing TW PNR activity/billing for the month of January, 2002. A summary is provided below:

Buyer	PO#	POI		 Dth 	Rate 	Daily/Total	 Invoice Amount
PNM	27267	500617	 	49,000 	 $0.0800 Total	 	 $3,920.00
USGT	27268	500622	 	14,871 	 $0.0400 Daily	 	   $607.96
USGT	27268	500622		    328 	 $0.0500 Total		     $16.40
USGT	27268	500622	 	21,563 	 $0.0500 Daily		$1,078.15
Calpine	27507	78151		10,000 	 $0.3883 Daily	 	$7,766.00
VirgPwr	27719	500623	 	* 4,793	 $0.0800 Daily	 	$9,137.52

TOTALS			100,555 			$22,526.03

* BOM Balance withdrawn in January

If you have any questions, please call me.


The report named: NG - PROPT P/L <http://trv.corp.enron.com/linkFromExcel.asp?report_cd=11&report_name=NG+-+PROPT+P/L&category_cd=5&category_name=FINANCIAL&toc_hide=1&sTV1=5&TV1Exp=Y&current_efct_date=10/29/2001>, published as of 10/29/2001 is now available for viewing on the website.


Gracias!  I am happy to hear about the improvement.
ceh

Phillip M Love
01/25/2000 01:04 PM
To: Carrie Hollomon/HOU/ECT@ect, Susan Harrison/HOU/ECT@ECT
cc:
Subject: Elizabeth Soto

Just wanted to follow up with you guys on a conversation we had in a recent
staff meeting.  I personally have noticed a dramatic improvement in the phase
I process that Elizabeth is responsible for.  She has definitely become more
comfortable with the process and we are seeing significantly less entry
errors.  I checked with the others, and these comments seem to reflect
everyone's feelings.  Just thought I would update you guys.  Thanks.
PL


?
 - dab.exe


Attached are the latest draft Exhibits for the Marketing Strategy and the
Trading and Risk Policy for your review.  If you have any questions or
comments before we get together on Monday, please call me on my cell phone
at 713-569-5786.

 - Exhibit A - Marketing Strategy v8.doc
 - EXHIBIT B - MDEA Trading and Risk Policy v9.doc


I'm off for my Xmas break, so happy holidays to you all!

Steve


Highlights of AB21X that passed the AB and new Bowen version:

AB 21X contained:     Changes in new Bowen SB 27

before effective date, customer can go DA without limitation  but only if
customer was not purchasing from utility after Jan 17.  Exit fee may apply if
customer was purchasing from utility after Jan 17
existing DA can stay DA
after effective date, customer can go DA upon payment of exit fee based on
DWR's unavoidable costs
after effective date, customer can go DA w/o exit fee if using self-gen or
cogen and with 180 days advance notice  DELETE
re-entry fee applies for return to bundled service from DA, unless 12 months
advance notice is given opportunity to avoid with 12 months advance notice is
deleted
portion of the customer's load served by utility is not limited from going DA
under this bill  DELETE
load growth may be used to allow residential and small commercial to go DA
w/o exit fee   DELETE
Commission notifies customers of their choices within 30 days of effective
date   90 days

The first point is the most critical.  It exposes customers to exit fees if
they go DA before the effective date.  If we can argue to the DWR that no
costs were really incurred by them - in fact, their burden was relieved by
load going DA - this problem goes away.  Better to clarify in the legislation
if we can.  Other than that, a couple of the Christmas tree ornaments have
been taken off.  (These were nice, but, let's be realistic).

Seems to me this is still a pretty good bill!  (especially if we can clarify
that CPUC's new 3 cent surcharge doesn't apply to DA. )  With either bill, we
still have the issue of how to measure net avoidable DWR costs for exit fee
purposes.


Kim:

I have been asked by our corporate paralegal to assist him in cleaning up the ENA corporate database as those individuals who have been appointed agent and attorney-in-fact to sign confirmations in connection with financial transactions.  Mary Cook has a copy of an e-mail in the file to Brenda Herod setting forth the procedures and telling her that you verify the requests and notify Legal of any changes.  In this e-mail, apparently Brenda asked that Mike Moscoso's and Kristen Hanson's appointments be revoked and that Lisa McClendon be added.

Will you let me know of any changes that should be made at this time?

Thanks!

Marie


Please find attached the Risk Pool Report as of 8-13-01.  I apologize for the delay in distribution.


-----Original Message-----
From: 	Adams, Matthew
Sent:	Monday, October 22, 2001 4:07 PM
To:	Port, David; Murphy, Ted; Curry, Wanda; Brackett, Debbie R.
Subject:	1999's CFO Excellence Award Winner

Interesting reading.  Here's a quote:
Fastow's expert balancing act, in fact, has earned him this year's CFO Excellence Award for Capital Structure Management. "We needed someone to rethink the entire financing structure at Enron from soup to nuts," says Jeffrey K. Skilling, Enron president and chief operating officer. "We didn't want someone stuck in the past, since the industry of yesterday is no longer. Andy has the intelligence and the youthful exuberance to think in new ways. He deserves every accolade tossed his way."

http://www.cfo.com/article/1,4616,0|1|AD|1340,00.html


Please, take a look.

Vince
---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 11/08/2000
10:34 AM ---------------------------

pj@austingrp.com on 11/08/2000 09:11:49 AM
To: "Vince J Kaminski" <Vince.J.Kaminski@enron.com>
cc:
Subject: TAGE Resume Submittal

Vince,
Per our discussion, please find the resume of  Andrei Smilenov. Please call
me with your thoughts.
?
Paul Johnson, CPC
President
(281)  497-8595
?
Please visit our website
? www.austingrp.com
 - Andrei Smilenov.doc


just a little article i stumbled upon earlier this morning.....semi interesting.....am mostly just bored.....
e

Thanks, But No Thanks: Turning Down the Offer
by Carole Martin
	[IMAGE]
[IMAGE]	[IMAGE]
	[IMAGE]

In today's job market, it seems ludicrous to talk about turning down a job offer. Everyone should be so lucky as to even get an offer. But you need to stop and think before you jump out of desperation into a situation that is not good for you. Even though it may be uncomfortable, there are times when you have to say, "Thanks, but no thanks."
Great News; You've Got an Offer
George was laid off from his job in June. After four months of rejection, he finally got an offer. He was excited. Or was he?
It really wasn't the job he wanted. It was just one of the jobs he had applied for, because he was qualified and could perform the duties. The job really didn't match any of his values. Taking this job meant a long commute in heavy traffic. Financially, it was going to be a lateral move. But, most of all it was not a challenging or growth-related opportunity. The thought of going to this job day after day depressed him before he even accepted.
How could he turn down an offer after so many months of waiting? He was dreading telling his wife about the offer for fear she would think he was crazy for not taking it. How could he tell the company he didn't want the job after going through all those interviews?
Do What You Want
The company wanted to know by the end of the week. George was making himself sick thinking about the decision. That afternoon, he happened to catch a television show about taking care of yourself in stressful times. "Do what you want to do, not what others want you to do," was the message. George knew what he wanted to do. He wanted to continue looking for a better opportunity.
When he told his wife, not only was she understanding, but she was encouraging as well. "Life is too short to make decisions that are going to make you miserable," she told George. The decision was made. George would turn down the offer. Together they wrote a script to gracefully reject it.
Making the Call
The next morning George placed a call to the hiring manager. "I've thought over the offer extended and have made a career decision not to accept the position," he told the manager. "I am grateful to you for believing in me, and I hope there may be an opportunity for us to do business in some way in the future." The hiring manager was disappointed but said he understood career decisions and the need to do what's in one's best interest.
It takes courage and maturity to reject a job you really don't want. The best way to handle difficult decisions is to weigh the consequences and decide what is best for you. Since you don't want to alienate a business contact in the process, it is best to be as professional about the conversation as you can. Preparing a script ahead of time will assist you with your discomfort. No one likes confronting unpleasant situations, but one difficult moment compared to weeks, months or even years of work you find unpleasant is a small price to pay.
[IMAGE][IMAGE]

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


There will be a budget meeting on Tuesday, November 27 @ 11:00 a.m. in ECN 32C2.  London will participate via video conference (NE5003).  Please notify me if you are unable to attend.

Many Thanks,

Liz Taylor
Executive Assistant to
Greg Whalley, President & COO
Enron Corp.
liz.taylor@enron.com


John:
Genia Fitzgerald, our legal assistant will be coordinating the execution of
the docs.
Carol St. Clair
EB 3889
713-853-3989 (Phone)
713-646-3393 (Fax)
carol.st.clair@enron.com

	morisjr@selectenergy.com
	06/05/2001 03:16 PM

		 To: Carol.St.Clair@enron.com
		 cc: lemelpe@NU.COM, sassima@selectenergy.com, leporjj@selectenergy.com,
geoghjw@NU.COM
		 Subject: Enron / Select ISDA and EEI Master Agreement

Carol,  Were done.  We have completed our review of Attachment A and are in
agreement with the transactions represented.  Please have the documents
executed and forward the originals to me for execution by Select.  Thank
you for your assistance in getting this to completion.  John

Please send the documents to:

   Select Energy, Inc.
   107 Selden Street
   Berlin, CT  06037
   Attn:  John Morissette


Anjam, thanks for organising this - and Vince thanks for making yourself
available for the discussion.

I am working for Joe Gold and my group is concerned with adding the web as an
additional sales and communication channel for our European business units.
Through the web we are also able to convey a more local image, rather than
presenting ourselves as a Texan company through Enron.com.
To set you into perspective about what we have in mind I have attached a
brief presentation which has been the basis for the sign off of the project.

We intend to display a wide training section for the following reasons:
document our know-how base
educate the market participants
generate great stickiness (participants should know that if they need to know
s.th. on energy risk mgt. they should go to Enron)
later on: have the option to commercialise this area.

I look forward to our discussion.

Kind regards
Sven Becker


---------------------- Forwarded by Phillip M Love/HOU/ECT on 02/20/2001
10:11 AM ---------------------------

From:  Veronica Espinoza @ ENRON
               02/20/2001 09:38 AM

To: Larry Joe Hunter/HOU/ECT@ECT, Bob Bowen/HOU/ECT@ECT, Kim S
Theriot/HOU/ECT@ECT, Melinda Whalen/CAL/ECT@ECT, Dianne Seib/CAL/ECT@ECT,
Janie Aguayo/HOU/ECT@ECT, Derek Bailey/Corp/Enron@ENRON, Kevin
Meredith/Corp/Enron@ENRON, Ellen Wallumrod/NA/Enron@ENRON, Celeste
Cisneros/NA/Enron@Enron, Diane Anderson/NA/Enron@Enron, Tiffany
Williams/NA/Enron@Enron, Cindy Feldman/CAL/ECT@ECT, Patricia
Boulanger/CAL/ECT@ECT, Linda Sietzema/CAL/ECT@ECT, Sharon
Crawford/CAL/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Tanya
Rohauer/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT,
Russell Diamond/HOU/ECT@ECT, Lesli Campbell/HOU/ECT@ECT, Nidia
Mendoza/HOU/ECT@ECT, Jeffrey C Gossett/HOU/ECT@ECT, Kam Keiser/HOU/ECT@ECT,
David Baumbach/HOU/ECT@ECT, Errol McLaughlin/Corp/Enron@ENRON, Darron C
Giron/HOU/ECT@ECT, Walter Guidroz/NA/Enron@Enron, Leslie Reeves/HOU/ECT@ECT,
Veronica Gonzalez/HOU/ECT@ECT, Phillip M Love/HOU/ECT@ECT, Jean
Bell/HOU/ECT@ECT, Ken Curry/HOU/ECT@ECT
cc:
Subject: Credit Report--2/20/01


No knowledge on 4, 5, 6, 7 and 8.

Rest is OK this end.

Regards,

Jos? M. Hern?ndez

   -----Original Message-----
   From:       MCUNNINGHAM@isda.org [SMTP:MCUNNINGHAM@isda.org]
   Sent:       26 October 2001 22:28
   To:         BOARD@isda.org; RPICKEL@isda.org
   Cc:         MCUNNINGHAM@isda.org
   Subject:    Member Applications

   The following 12 applications will go for approval at the next
   executive
   committee meeting on Thursday, November 1.

   Please let me know if you know Kommunalbanken AS or KommunKredit.
   Thank
   you.
   Mary

   Primary Regional
   1.  Hamburger Sparkasse - German bank

   Associate Broker
   2.  Tradition (North America), Inc. - broker

   Associate
   3.  LIFFE - exchange
   4.  Arendt & Medernach - Luxembourg law firm
   5.  Wistrand Advokatbyra - Swedish law firm

   Associate Emerging
   6.  Deacons - Hong Kong law firm

   Subscriber
   7.  Kommunalbanken AS - local gov't (Norway) funding agency
   8.  KommunKredit - provides loans to the Danish local authorities and
   Danish
   semi-municipal institutions
   9.  CDC IXIS Asset Management - (its parent CDC IXIS Capital Markets
   is a
   Primary member)
   10.  DKR Capital Inc. - Investment management firm.  (Formerly known
   as AIG
   International Asset  Management Inc.  DKR is no longer an affiliate
   of AIG.)
   11.  Bank of England - Central bank
   12.  Swiss National Bank - Central bank


So, is this ok now?

D

	From:  Stella L Morris                           01/11/2000 11:09 AM

To: Charlotte Hawkins/HOU/ECT@ECT
cc: Howard B Camp/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Pat
Clynes/Corp/Enron@ENRON
Subject: Revision - Black Marlin - meter 986782 for 8/98 - UA4

The above meter is non-allocatable and was off system, actuals at meter #8693.
Thanks, Stella

---------------------- Forwarded by Stella L Morris/HOU/ECT on 01/11/2000
11:01 AM ---------------------------

	From:  Stella L Morris                           12/28/99 05:55 PM

To: Daren J Farmer/HOU/ECT@ECT
cc: Howard B Camp/HOU/ECT@ECT
Subject: Revision - Black Marlin - meter 986782 for 8/98 - UA4

Revision - According to measurement, there is flow of 7,394 in 8/98, however,
there is nothing to indicate this is gas that was received on HPL in OSS.   I
checked MIPs and there is a measurement statement that supports the flow rate
of 7,394 MMBTu.

Daren is there a deal in CPR which may not have fed over to OSS?   I checked
OSS for the whole year of 1998 and there are no other deals in OSS.  It does
seem strange that this is the only month of flow.

Thanks, Stella


Pat ,

Further to our conversation,  here is a sample draft of ENA's GISB for your
review.  I will forward  the draft of the Master later today or tomorrow.
With regards to ISDA Contracts you will need to contact Stephanie Panus at
713-345-3249.

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


I'm going over the Park & Loan discounts on CNG for May.  I need to see the
invoice to compare what we were billed to what CNG is showing on the discount
letter.

Gloria, Terry does not have the invoice.  Could you get me a copy please?

Thanks.


---------------------- Forwarded by Tom Acton/Corp/Enron on 04/24/2000 12:41
PM ---------------------------

Vance L Taylor@ECT
04/20/2000 03:34 PM
To: Tom Acton/Corp/Enron@ENRON
cc: Susan Smith/HOU/ECT@ECT, Donald P Reinhardt/HOU/ECT@ECT, Melissa
Graves/HOU/ECT@ECT

Subject:

Tom,

Please see the attached file estimating wellhead production for the month of
May.  Please be advised that this is a preliminary estimate as to this date
we have only received a few paper noms for May.  I will update you with any
revisions as they occur.

Thanks,

vlt
x3-6353


Given the current tremendous energy market volatility and as we stretch
resources to make our commercial goals for 2000, we think it would be
appropriate to postpone the ENA 2000 Offsite to early next year.  I trust
this meets with your approval and thanks for all the hard work.

Regards
Dave and John


sorry, i left lou off of the message.
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/13/2001
09:46 AM ---------------------------

Drew Fossum
01/13/2001 09:45 AM
To: Norma Hasenjager/ET&S/Enron@ENRON
cc:

Subject: Request to purchase chair(s) for Susan

Lou, do we have any sort of policy on requests like this?  Lee Huber made the
same request last year and we gave her the chair (she only wanted one,
however).  Norma, any thoughts?
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/13/2001
09:43 AM ---------------------------

DENISE LAGESSE
01/12/2001 01:14 PM
To: Drew Fossum/ET&S/Enron@ENRON
cc: Susan Scott/ET&S/Enron@ENRON

Subject: Request to purchase chair(s) for Susan

Susan Scott would like authorization to order an Aeron chair for each of her
offices - on 47 and 41.  This particular chair is designed to help with back
problems, which she has.  Many people at Enron already have this type of
chair, but we rarely, if ever, have a surplus because they are so popular.
The cost is $567.77 per chair plus tax.  Please approve the purchase of two.
Thanks!


The PCB Annual Document Logs for the facilities that generated PCB waste and
stored it at TW's long term storage facility were completed and distributed
to locations and entered into Envisions.

The 2rd quarter Transwestern/SoCal PCB mgt. committee conference call was
completed.  This committee meets to discusss PCB management on the SoCal
system and review invoices generated by SoCal during each quarter.  This
quarters invoice amount was $280,633.48 of which Transwestern is 86%
responsible or $241,344.79.

Final activities are in progress at the Topock Lateral where cleanup of the
1850' pipeline and appurtenances has been completed.  Analytical results of
the wipe samples and liquid samples taken showed the cleanup to be
successful.   All wipes after the cleaning showed to be less than 1
microgram/100 cm. sq.  Analytical results of the liquids showed to be less
than 20 ppb.  The next phase of the cleanup activities will be in November
when the remaining 11 miles of pipe will be cleaned and have launcher
facilities installed at the mainline interconnect.


-----Original Message-----
From: 	Schneider, Bryce
Sent:	Friday, October 19, 2001 7:47 AM
To:	Williams, Ryan
Cc:	Jenkins IV, Daniel
Subject:	FW:

Horns goin down!

http://www.geocities.com/Colosseum/Track/2855/col.html


Congrats on the CFA! Maybe one day I'll get off my lazy ass and give it a shot.

Chris


********************[ A D V E R T I S E M E N T ]****************
Is your online broker built to trade? Datek Online's advanced
technology gives you fast executions, real time quotes and
immediate portfolio updates. For a limited-time offer, go to
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*****************************************************************
SIVY ON STOCKS from money.com
December 6, 2000

Banks hitting bottom

Earnings disappointments and fears about bad loans have triggered a new
round of selloffs for financials like Bank of America and Chase Manhattan.
But it looks as though the worst is over.

By Michael Sivy

Bank of America's announcement on Wednesday afternoon that fourth-quarter
profits would fall substantially short of expectations sent major bank
stocks into a tailspin. B of A [BAC] closed the day down nearly 8 percent,
while Chase [CMB] dropped 3 percent. These declines are only the latest bad
news for the commercial banking sector, which has been battered all year.
In fact, both B of A and Chase are down by more than 20 percent since the
start of the year.

I can't say I anticipated the sell-off, since I bought Bank of America more
than 15 percent above its current price. Nonetheless, there's nothing
surprising about banks reporting bad numbers after a year of high interest
rates and six months of slowing economic growth.

Traders also got caught off guard by B of A's news. They were heavy buyers
of bank stocks Tuesday after Alan Greenspan addressed a conference of
bankers in New York City. The Federal Reserve chairman said "the pace of
economic activity has moderated appreciably." He added that the Fed now has
to be more attentive to the risk that the economy might slow too much. Many
economists read into those comments that the Fed will formally change its
stance in favor of lowering interest rates at its Dec. 19 meeting, and
actually cut them early next year.

Such news ought to be bullish for bank stocks. So why are they still
falling? Basically, they've virtually acknowledged that they'll report
sub-par earnings and higher loan losses this quarter and probably next.
Share prices could dip a bit more as those weak results get reported. But
most of that bad news is history -- from here on out, the trends will be
getting better, not worse.

Bank of America, which merged with NationsBank in 1998, is the largest U.S.
bank. Its stock is currently down to a paltry $38, just $2 above the
52-week low. For 2001, B of A should report earnings of about $5 a share,
just a single-digit gain from estimated 2000 results. Over the next five
years, however, analysts think the bank could grow earnings by about 10
percent annually. Including the 5 percent-plus dividend yield, that's quite
a generous return for shares that are trading at only eight times earnings.

Chase Manhattan presents a similar case. The bank, which is acquiring J.P.
Morgan, has been knocked down in anticipation of bad fourth-quarter
results. Chase is a major lender to troubled Xerox, for example, so that
could be a source of loan losses. Nonetheless, the banking giant offers 11
percent projected long-term earnings growth and a 3 percent dividend yield.
With a P/E of just over 10 times next year's estimated earnings, Chase
looks like a compelling buy as well.

=======================
CHAT TRANSCRIPTS
MONEY's Michael Sivy identifies sectors and stocks that possess
true value in a rocky market.
http://www.money.com/chat/2000/001204.html

Tech Investor David Futrelle discusses the current state of the
tech market and the outlook for various sectors.
http://www.money.com/chat/2000/001201.html
=======================

###

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us know by e-mailing us at <no_transfer@money.com>.


I've answered all their questions, and have suggested to Chris that he ask
NorthWestern for audited financials.  Marissa is preparing a letter which
briefly outlines the deal, since GE had requested a letter identifying the
parties, the payment obligations, etc.  I've given them all this information
previously in phone calls and by email, but I think they want something
official looking.  Probably be a good idea for you to sign the letter.

I don't think they will trade payment for a consent, but I could be wrong.
It just isn't enough money, and GE isn't strapped for cash anyway.  I'd want
to be careful that we don't trip up on E - Next obligations.

Kay

From: Ben Jacoby/ENRON@enronXgate on 06/06/2001 01:09 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: FW: Payment of GE Invoice

Kay:

I'd like to hold payment on this invoice until we receive the consent from
GE. Any update?

 -----Original Message-----
From:  Walker, Rebecca
Sent: Wednesday, June 06, 2001 9:59 AM
To: Jacoby, Ben
Cc: Booth, Chris; Dennis, Tonya; Clark, Catherine; Edmonds, Marcus
Subject: Payment of GE Invoice

Ben

The Turbopark funds request for all payments to be made next month needs to
be submitted by Tuesday, June 12th.  This request covers the period from June
15th to July 15th.  Are we planning to pay the $1.5 MM invoice from GE during
this time period?  If so, I will have accounting request the funds.  If we're
not sure if the payment will be made or not, it is better not to request the
funds.  In this case, the payment can be treated as an "actual" for that
month and backed out of the advance for next month.  Please let me know which
course of action you would like to take.

Thanks,
Rebecca


---------------------- Forwarded by Darron C Giron/HOU/ECT on 10/20/2000
09:30 AM ---------------------------

	Enron North America Corp.

	From:  Victor Guggenheim                           10/20/2000 08:58 AM

To: Darron C Giron/HOU/ECT@ECT
cc:
Subject: official post id


Per Mary, Sitara can not handle it either.  It can calculate and withhold
volume from the deal as a % for fuel, but not as part of the price.  Steve
says this is a nightmare for the Denver office.  Can you take the "To Do" to
follow-up on this throughout the systems, and get back with Ed to further
discuss?  I'd really appreciate it.

Michael Eiben
06/22/2000 01:09 PM
To: Brenda F Herod/HOU/ECT@ECT
cc: Lisa Csikos/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Mary M
Smith/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Pat
Clynes/Corp/Enron@ENRON, Edward D Gottlob/HOU/ECT@ECT
Subject: Re: Fuel

We need to discuss further.  My concern would be that how do we know what %
HPL should be retaining at a compressor or zone to make sure we recoup our
fuel cost ?  Also, could allocated fuel cause a contract imbalance?  I think
that Pipeline Operations can handle the scheduling of third party fuel
retainage.  But, if we retain fuel on ENA transports, then we need to come up
with a plan to nominate this in Marketing Operations to Houston Pipeline.
Currently, this process is not in place.

	Enron North America Corp.

	From:  Brenda F Herod                           06/22/2000 12:35 PM

To: Lisa Csikos/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Mary M
Smith/HOU/ECT@ECT, Rita Wynne/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Pat
Clynes/Corp/Enron@ENRON, Michael Eiben/HOU/ECT@ECT
cc: Edward D Gottlob/HOU/ECT@ECT
Subject: Re: Fuel

What is the answer?  Can the systems and processes handle this?  Please let
me know ASAP.  Thanks.

Edward D Gottlob
06/22/2000 10:57 AM
To: bherod@enron.com
cc:
Subject: Fuel

Brenda,

As you know fuel is a big risk.  One of the things we are trying to do is get
the shipper to pay fuel.  This would mean we would purchase, transport and
possibly sell gas with a fuel percentage as part of the price.  Can the
downstream systems, scheduling etc handle this?


Note: forwarded message attached.

__________________________________________________
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From: "Bill Barnes" <steelheader75@hotmail.com>
To: stroup@mailbox.orst.edu
Subject: Fwd: New Arkansas Quarter
Date: Wed, 07 Mar 2001 14:28:13 -0800
Mime-Version: 1.0
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FILETIME=[E937C960:01C0A755]
Content-Length: 61551

>From: "Dennis Ruth" <classy53@home.com>
>To: "Chuck Yengst" <cty6460@aol.com>, "Chuck White" <cmwhite39@home.com>,
>"Carlena Weeks" <eve@proaxis.com>, "David Wardrop" <wardropfam@home.com>,
>"Brian Wallace" <Brian.L.Wallace@noaa.gov>, "Aurora Versolenko"
><auringv@yahoo.com>, "Joseph Sottile" <Jsottile@webtv.net>, "Charlie &
>Jenny Shade" <cjshade@ix.netcom.com>, "John Seiber"
><John_Seiber@hotmail.com>, "Pat Salts" <saltsr@datastar.net>, "Jason Salts"
><nawlins3_1999@Yahoo.com>, "Betsy Richardson" <blksheep@peak.org>, "Bill
>Resavy" <ResavyWJ@hqmc.usmc.mil>, "Bruce Reese" <brucereese@aol.com>, "Tina
>Parlee" <CParlee@email.msn.com>, "George Moody" <george.moody@noaa.gov>,
>"Paul Mlsna" <pnlmlsna@yahoo.com>, "Bob McAnany" <bobmack@wpa.net>, "Bill
>Lake" <blake007@earthlink.net>, "Lee Jager" <leejag@proaxis.com>, "Pat
>Jacks" <patjacks@aol.com>, "Martin Hoque" <MartyHoque@hotmail.com>, "Robert
>Hicks" <robertwhicks@prodigy.net>, "Randy Henninger" <rhenn-go24@home.com>,
>"Scott Goff" <scottagoff@yahoo.com>, "Mike Gilroy" <m.gilroy@gte.net>,
>"Dennis Frisbie" <dfrisbie3@home.com>, "Chuck Fisk"
><cjfisk@worldnet.att.net>, "Chris Fakes" <cfakes@mmcable.com>, "Vic Eden"
><vic33_3@yahoo.com>, "Mike Dotson" <dotsonm@naswi.navy.mil>, "Joe Covert"
><Joe.Covert@noaa.gov>, "Chris Cottone" <ccott1@hotmail.com>, "Karen
>Corbett" <corbett@proaxis.com>, "Bernie Cohenour" <oceanog@hotmail.com>,
>"Jim Clark" <jamesm@proaxis.com>, "Dave Carsten" <davecarsten@hotmail.com>,
>"Rickey Bradley" <rickeyanddiana@earthlink.net>, "Matthew Bodowsky"
><MBODOSKY@NCDC.NOAA.GOV>, "John Berger" <john.berger@cablespeed.com>,
>"Terry Battilino" <TERRYBATT@HOTMAIL.COM>, "Bill Barnes"
><steelheader75@hotmail.com>, "FRANK  BAILLIE" <xwxguynavy@prodigy.net>
>Subject: New Arkansas Quarter
>Date: Wed, 7 Mar 2001 10:21:29 -0800
>
>GlacierAll:
>
>Everyone knows about the U.S. mint is releasing 50-state quarters.
>Attached is the Arkansas design.  A tribute to "Bill" (if you get the
>hidden meaning).
>
>
>
>Regards,
>Dennis
>
>Just because I have a short attention span doesn't mean I
>
>
>
>
>
>

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

 - Arkansas Quarter.jpg


Jeanette:

I just reviewed the handout for your presentation on the Global Settlement.  One of your slides stated that the
TCR surcharge is applicable for 10 years from the Global settlement, even if the CFS's contract expires.

Conoco Contract Nos. 20747 & 20748 expired at the end of February.  I assume we should bill the TCR
surcharge for these contracts beginning in March, 2002.  Please let me know if this is correct.

Thanks!

Jan Moore
X53858


your guys are probably seeing this as well, but, 50 cents higher our customer biz was 95/5 from buy side.  now it's 50/50.  can almost smell blood among the producers.  only problem is trade is sooooo short they cant see straight.  were the market still not so fundamentally overvalued right now i'd be looking for a 25 cent move up.  just can't see that happening at this level though.


We met with the legislator who is in charge of the Summer 2001
subcommittee today to discuss Enron's buy down proposal.  Dave Freeman
had discussed the idea with her previously, however, his version
required that the contract be for a pre-arranged price, based on the
notice you were given presumably by the ISO, i.e. 24 hours = x, 12 hours
= y, etc.  Consequently, her concern with our proposal was the
uncertainty of allowing customers to choose whether or not they want to
shut down based on price versus requiring them to shut down to meet
demand, i.e. a modified interruptable.

She requested that we provide her with information about existing buy
down programs and their successes.


This guy is working on an EOL project for me right now.  Can you send him a file with our EOL trades for today or yesterday with product, price, buy/sell, and timestamp but counterparty names deleted

 -----Original Message-----
From: 	Thuraisingham, Ravi
Sent:	Thursday, October 18, 2001 4:26 PM
To:	Arnold, John
Subject:	RE: Neural Networks

John, just a reminder, please send a sample gapping data when you get a chance.

Ravi Thuraisingham, CFA
Director, Storage Trading
Enron Broadband Services
p  713.853.3057
c  713.516.5440
pg 877.680.4806
ravi.thuraisingham@enron.com


We are bringing in Associate Candidates for Super Saturday this upcoming weekend and we are looking for associates to help host our Saturday evening dinner at Teala's, 3210 West Dallas.  The dinner will be from 6:00 p.m. - 8:30 p.m.  If you are available to help out please email Dolores Muzzy.  We will also have another Associate Super Saturday on the weekend of November 30th - December 2nd.  We will be in need again of dinner host for the Saturday evening dinner.  It will be at the same time and also at Teala's.  If you are not available this weekend but would like to participate on the next Associate Super Saturday please email Dolores Muzzy as well.

Thanks for your participation.

Dolores


Thanks Mark. Feel free to call me anytime with questions.

Les


Wasn't sure if you were copied on all this.

 -----Original Message-----
From: 	"Lawrence J. Hand, Jr." <lhand@lemle.com>@ENRON [mailto:IMCEANOTES-+22Lawrence+20J+2E+20Hand+2C+20Jr+2E+22+20+3Clhand+40lemle+2Ecom+3E+40ENRON@ENRON.com]
Sent:	Tuesday, July 24, 2001 4:24 PM
To:	Joe Ball (E-mail)
Cc:	Robert. D. Morgan (E-mail)
Subject:	FW: INJECTION WELL WORK PERMIT - NAPOLEONVILLE STORAGE NO. 1

  Joe, here is the UIC-17 for dewatering.  The hardcopy is in the FedEx.
Thanks for the help.  <<Ball - enclosing Injection well work
permit.DOC>>  <<INJECTION WELL WORK PERMIT.DOC>>
 - Ball - enclosing Injection well work permit.DOC
 - INJECTION WELL WORK PERMIT (2).DOC


Latest turn of doc.


pls print.  thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 10/03/2000
04:08 PM ---------------------------

Tony Pryor
10/03/2000 03:41 PM
To: Paul Cherry/GPGFIN/Enron@ENRON, Ted Chavez/GPGFIN/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON
cc:

Subject: Internal ISDA Master

Here's the form Tana sent me. Let's look at it and finalize an intra-company
contract between NNG and TW.
---------------------- Forwarded by Tony Pryor/ET&S/Enron on 10/03/2000 03:35
PM ---------------------------
From: Tana Jones@ECT on 10/03/2000 11:22 AM
To: Tony Pryor/ET&S/Enron@ENRON
cc:

Subject: Internal ISDA Master

Per our conv., attached is form of master.


I faxed this to you too.

----- Forwarded by Maureen McVicker/NA/Enron on 11/16/2000 10:52 AM -----

	Alhamd Alkhayat
	11/16/2000 10:36 AM

		 To: Maureen McVicker/NA/Enron@Enron
		 cc:
		 Subject: redeployment slides

Alhamd Alkhayat
ENRON CORP.
+1(713)853-0315


I have three utililities almost ready to go; we were sorting through issues
related to Canadian regulated entities.  SS


Please see attached letter, same subject -- signed, hard copy to follow.

 <<SRP Change.doc>>

 - SRP Change In Scheduling Practices_.doc


Nyree I received this again.
See below
Monika
-----Original Message-----
From: enron_update@concureworkplace.com
[mailto:enron_update@concureworkplace.com]
Sent: Wednesday, November 14, 2001 11:23 PM
To: Causholli, Monika
Subject: Expense Report Receipts Not Received

Employee Name: Monika Causholli
Report Name:   Monika Causholli
Report Date:   10/25/01
Report ID:     1CD662BAC8BB11D5B373
Submitted On:  10/25/01

Receipts for this expense report have not yet been received. If receipts have been mailed, please disregard this message.


Hey Mark
below is a summary of the costs I paid for Bill's funeral and credit card
costs.

Mariachis             260
Price Club            370
Arturo food           240
chair rental              80

Household CC   600     paid in November
Household  CC   146    paid Dec. 26th
Mervyns bill        1420    total of January statement
Macy's bill           1050    total of January statement
Total                    $4,166

I'll go ahead and pay the Mervyns and Macy's bill as soon as I receive your
check and since I just got their statements.   I'd like to avoid paying
them 18% interest as long as you have the cash.     I have not received a
bill from the funeral home, nor have I paid them anything.   I can't
remember if you gave them my address or your mom's.

FYI,  I've received two voice mails from bill collectors regarding Cito's
old Broadway credit card (I think they are now Bloomingdale's).     I have
not replied to their voice mails and do not know how they received my phone
number.   But I'll ignore them for now since they are trying to hunt down
Salvador Guzman, who died 18 years ago anyway.     They will probably give
up trying to collect, but just thought I'd let you know about that pending
liability.    Do you know how much Bill owed them?

In case you don't have my address, it is
     7971 Southwind Circle
     HB   92648

see ya,
Dave

------------------------------------------------------------------------------
-----------------------
The information transmitted is intended only for the person
or entity to which it is addressed and may contain confidential
and/or privileged material. If you are not the intended recipient
of this message you are hereby notified that any use, review,
retransmission, dissemination, distribution, reproduction or any
action taken in reliance upon this message is prohibited. If you
received this in error, please contact the sender and delete the
material from any computer.  Any views expressed in this message
are those of the individual sender and may not necessarily reflect
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------------------------------------------------------------------------------
-------------------------


Wednesday, Dec. 13th would work best for me.


Mr Lay:

It is easy for me to understand the feelings of anger of many of my co-workers and peers as the turn of events at Enron has probably taken the worst possible route.

I do not understand, however, why so many people blame you personally for the whole process. This is a business issue, and as a business failure, the "fault" if there is such thing, belongs to no one. It's just a fact of life that businesses fail, and businesses succeed. Enron was always on top, and when that was the case, although people recognized your leadership, the common knowledge was that it was all a "team effort".
I find it unfair and unhealthy to hear people's currennt comments about upper management including, particularly,  yourself. I  have the sense that for many people it has become a personal thing, and that should definitely should not be the case.

As a personal note, I have to say that I feel for you. Seeing what you built for many years crumble to dust like Enron has, and then leave with that legacy must not be easy. The closest analogy I can think of is the Concorde. There are many parallels among the Concorde and Enron. Both were a marvel of innovativeness, technology and talent, each in its own time. After Concorde's first crash last year, it was imperative that it fly again. It would have been a bitter and undignified end for such a graceful, advanced machine if it did not. Many engineers, originally involved in the process of building Concorde in the 60's and 70's came out of retirement to participate in its modification process. And now, it is flying again, with pride.

Given the pragmatic and cold facts of business, I do not think you will have that opportunity. Whether Enron flies again  (and I'm sure it will) you will not be a participant to its re-birth. Even though for the past 2 months you have spent countless sleepless nights, away from your family and trying effortlessly to get the best possible solution, you will not be here to see the fruits of your work. For some time to come, people will associate you with Enron's demise, and will blame you for it. Few will remember that it was you who made Enron what it was, in our best days. I believe strongly that that is not fair.

Thanks for what you have done, for the past 25 years and the past 3 weeks. You are probably one of the people most affected by this, at least emotionally. Thanks for your courage in keeping us updated, through voicemails and e-mails, knowing that most of them will be deleted, just by the mention of "office of the chairman". And please keep in mind that there are a lot of people out there that recognize what you've done, your recent efforts, your strength and presence of mind in these tough times.

My only hope is that you will find solace and tranquility, in knowing that what you should remember of your tenure at Enron is all the years you were at its helm, not the last 6 months and horrible 3 weeks.

Martin Gonzalez

ETS


Start Date: 4/29/01; HourAhead hour: 8;  No ancillary schedules awarded.  No
variances detected.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final
Schedules\2001042908.txt


Enron's Net Soars, Despite Telecom Loss, Gaining 40% Amid Strong Energy Units
The Wall Street Journal, 07/13/01

Enron Net Rose 40% in Quarter
The New York Times, 07/13/01

Treasury Prices Climb as More Money Is Shifted To U.S. Bonds on Weakness of
Emerging Markets
The Wall Street Journal, 07/13/01

THE ENERGY CRISIS Some State Energy Consultants Own Generators' Stock Ethics:
They negotiate deals and buy electricity from power firms. GOP officials
claim credit for forcing the disclosure of potential conflict.
Los Angeles Times, 07/13/01

THE ENERGY CRISIS Plan Uses Public in Refund Demand Legislature: Democrats'
proposal to pressure 'greedy' firms is attacked by GOP as political ploy.
Los Angeles Times, 07/13/01

COMPANIES & FINANCE THE AMERICAS - Surging energy sales behind Enron advance.
Financial Times, 07/13/01

Lex - Enron.
Financial Times - FT.com, 07/13/01

UK: Paladin says Enron sells entire stake.
Reuters English News Service, 07/13/01

White House adviser targeted for dealings with Salvation Army
Associated Press Newswires, 07/13/01

UK: Bidder list for Southern Water grows-report.
Reuters English News Service, 07/13/01

DPC not to re-start work on Phase II work
Business Standard, 07/13/01

California Power Bills Exceed Refunds, Judge Says (Update4)
Bloomberg, 07/13/01

California Governor Casts Blame for Crisis, to His Benefit
Bloomberg, 07/13/01

Enron's Net Soars, Despite Telecom Loss, Gaining 40% Amid Strong Energy Units
By Rebecca Smith
Staff Reporter of The Wall Street Journal

07/13/2001
The Wall Street Journal
A2
(Copyright (c) 2001, Dow Jones & Company, Inc.)

Enron Corp. posted a 40% increase in second-quarter net income, reflecting
the enormous profitability of its energy marketing and trading enterprise,
which was sufficient to offset wider-than-expected losses at its
telecommunications unit.
The Houston company had net income of $404 million, compared with $289
million a year earlier, on revenue that nearly tripled to $50 billion.
Earnings per share rose 32% to 45 cents from 34 cents.
Enron was lifted by exceptionally strong electricity- and gas-trading
volumes. In North America, natural-gas volumes jumped 9% and
electricity-trading volumes jumped 71%. In Europe, where Enron is pushing
aggressively into newly deregulated markets, trading volumes for gas more
than doubled and for electricity leapt to almost five times those of before.
From practically nothing just two years ago, Europe generates one-quarter of
Enron's energy-trading volumes.
Profits from trading more than compensated for a $101 million loss posted for
the company's telecommunications business that analysts had, until recently,
proclaimed would soon generate more income than Enron's energy business. For
the quarter, bandwidth-service revenue was $16 million. The unit posted a
loss of $8 million for the year-earlier quarter.
Enron's chief executive, Jeffrey Skilling, said prices for capacity on
fiber-optic networks, such as the one Enron has built, have been "dropping
like a rock. . . . We've been shocked at the extent."
Mr. Skilling said the company is trying to boost revenue by focusing on
fiber-optic delivery of data and entertainment -- "a narrow piece of the
business but about all that's left" -- and is hoping the glut in capacity
will evaporate as competitors go broke. He said companies that continue to
invest, despite the "market meltdown," and keep their networks state of the
art will be rewarded eventually.
Enron's results beat analysts' expectations, but several said they fear
softening electricity prices throughout the nation, and particularly in the
West, could crimp third-quarter results. "Enron benefited from unusual price
volatility," during the quarter, said Raymond Niles, an energy analyst for
Salomon Smith Barney. But it is uncertain whether that will continue with a
general softening of natural-gas and electricity prices across the country,
most notably in the West.
Mr. Skilling said he thinks California may have seen the worst of its energy
crisis. He consistently has said he doesn't think Enron's earnings will be
significantly affected by possible refund orders from federal energy
regulators or other regulatory intervention.
He added that Enron was pleased with steps the Federal Energy Regulatory
Commission took this week to encourage the formation of four big
electric-transmission grid operators in the West, the Northeast, the
Southeast and the Midwest.

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

Business/Financial Desk; Section C
Enron Net Rose 40% in Quarter
Bloomberg News

07/13/2001
The New York Times
Page 12, Column 4
c. 2001 New York Times Company

HOUSTON, July 12 -- The Enron Corporation, an energy trader, said today that
its second-quarter profit rose 40 percent as its sales of natural gas and
electricity surged in the United States and Europe.
Net income rose to $404 million, or 45 cents a share, from $289 million, or
34 cents, in the period a year ago, Enron said. Results beat analysts'
estimates by 3 cents a share.
Revenue almost tripled to $50.1 billion. Enron, which is based in Houston,
sold almost twice as much power in North America and five times as much in
Europe than in the quarter a year ago.
Although electricity and natural gas prices surged in California, Jeffrey K.
Skilling, the chief executive of Enron, said the state ''is just not a big
factor'' in Enron's increasing profits. The company bolsters earnings by
increasing sales of energy and other commodities like lumber and steel rather
than by raising prices, analysts said.
''That's the nature of the commodities business,'' said Zach Wagner, an
analyst with Edward Jones & Company. ''As markets open up, their volumes will
grow. Their margins are basically flat.''
Enron's profit margin was less than 1 percent last year and has averaged 2.1
percent the last five years, based on Bloomberg data. That compares with a
profit margin of 6.5 percent for Exxon Mobil, the largest publicly traded
energy company.
Shares of Enron have dropped 31 percent the last year, despite steadily
increasing earnings, and sales that now rival those of Exxon Mobil. Shares of
Enron rose 45 cents today, to $49.55.
Enron was expected to make 42 cents a share in the quarter, the average
estimate of analysts polled by Thomson Financial/First Call.

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

Credit Markets
Treasury Prices Climb as More Money Is Shifted To U.S. Bonds on Weakness of
Emerging Markets
By Michael Mackenzie and Andrew Gelfand
Dow Jones Newswires

07/13/2001
The Wall Street Journal
C12
(Copyright (c) 2001, Dow Jones & Company, Inc.)

NEW YORK -- Treasury prices closed higher as renewed weakness in emerging
markets prompted investors to shift more money into the U.S. bond market.
It is common for Wall Street traders to bid Treasurys higher when weakness in
other markets seems likely to spur flows into Treasurys, which are viewed as
a haven.
But yesterday's action involved more than just Wall Street firms and provided
substantial support, mostly offsetting the bearish influence of a stock
rally. "Argentina is keeping a good bid in the [Treasury] market," said Peter
Cordrey, managing director at Prudential Investment Management in New Jersey.
Much of the focus again was Argentina, whose long-term sovereign credit
rating yesterday was cut by Standard & Poor's to single-B-minus from
single-B.
S&P said the ratings outlook for Argentina remained negative and cited
"growing strain on the cohesion of the governing coalition and the risk that
it may impede efforts by Economy Minister Domingo Cavallo to implement
draconian measures to balance the federal budget."
That country is "just looking worse and worse every time you turn around,"
said Drew Matus, market economist with Lehman Brothers in New York.
Despite indications that Argentine officials are trying to win agreement on
spending cuts, investors remained nervous about the nation's ability to
service its large external debt burden. Prices of Argentine floating-rate
bonds fell about 103/8 points to 623/8.
In U.S. Treasury trading, meanwhile, the benchmark 10-year note at 4 p.m. EDT
was up 8/32 point, or $2.50 per $1,000 face value, at 98 6/32. Its yield fell
to 5.242% from 5.276% late Wednesday, as yields move inversely to prices.
The 30-year Treasury bond's price was up 14/32 at 96 1/32 to yield 5.652%,
down from 5.684% Wednesday.
Shorter Treasury maturities preformed less strongly than longer ones, and
analysts cited gains in stocks as a reason.
The Dow Jones Industrial Average surged 237.97 points to 10478.99, and the
Nasdaq Composite Index jumped 103.70 points to 2,075.74. Treasurys are being
"pulled in two directions, and the stock market is winning in the [short]
end," said Richard Gilhooly, senior bond strategist at Paribas Capital
Markets in New York.
Another factor bolstering Treasurys was economic news. In two early releases,
the Labor Department reported both a huge rise in claims for state
unemployment benefits and slightly lower prices for imported goods.
The number of workers filing first-time applications for jobless benefits
jumped by 42,000 to 445,000 in the week ended July 7, the highest level since
about mid-1992. That raised the four-week moving average to 410,750 claims.
Today, two other economic reports may dominate the attention of bond
investors: the producer price index and retail sales, both for June.
A Dow Jones Newswires/CNBC survey found that economists believe the PPI was
unchanged in June and will show a slight 0.1% increase in the month excluding
food and energy. "The friendly inflation news should help to keep a bid in
long [dated] Treasurys," said Gemma Wright, a bond-market strategist at
Barclays Capital in New York.
A separate Dow Jones Newswires poll found that economists expect to see a
0.3% rise in overall retail sales in June, or a 0.2% sales gain excluding
automobiles.
Corporate Bonds
Marlin Water Trust II sold $475 million and 515 million euros ($439 million)
of securities via Credit Suisse First Boston and Deutsche Banc Alex. Brown.
In 1998, Enron Corp. created a special-purpose entity, to finance the
purchase of water utility Wessex Water PLC of the United Kingdom. Yesterday's
issue was a refinancing of that debt, but was done in a way that keeps the
debt off Enron's balance sheet, underwriting officials said.
The U.S. portion of the deal was priced to yield 6.31%, or 2.25 percentage
points over Treasurys. In early trading, it was quoted at 2.25 percentage
points over Treasurys, which was "reasonably positive on a day when the
corporate market was so jittery," said Stephen Kane, portfolio manager at
Metropolitan West Asset Management.
Generally, investment-grade corporate bonds weakened on concerns about
emerging markets. Yield margins to Treasurys, an important performance gauge,
widened by 0.05 to 0.10 percentage point.
Separately, Citigroup Inc. tapped the market with $2 billion of two-year
global floating-rate notes priced to yield 0.09 percentage point over
three-month London interbank offered rate, or Libor.
Agency Securities
Fannie Mae sold $2.5 billion of callable benchmark securities, which traded
strongly afterward.
Its $1.5 billion of 5.5%, five-year notes yielded 5.5657%, or 0.05 percentage
point over the Fannie Mae benchmark level on an option-adjusted spread basis.
An additional $1 billion of 6.25%, 10-year notes yielded 6.408%, or 0.03
percentage point over the Fannie Mae benchmark level on an option-adjusted
basis.
Scott Graham, head of agency trading at Greenwich Capital Markets, said his
company saw "a number of customers" who don't typically consider callable
issues, but were nonetheless looking to buy some of the new securities.
---
Sonja Ryst, Richard A. Bravo and Tyler Lifton contributed to this article.

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

California; Metro Desk
THE ENERGY CRISIS Some State Energy Consultants Own Generators' Stock Ethics:
They negotiate deals and buy electricity from power firms. GOP officials
claim credit for forcing the disclosure of potential conflict.
ERIC BAILEY
TIMES STAFF WRITER

07/13/2001
Los Angeles Times
Home Edition
B-10
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- More than half a dozen consultants hired by the state to
purchase electricity and to negotiate long-term power deals own stock in
generating companies such as Calpine and Enron that have profited handsomely
during California's energy crisis.
The potential conflict of interest emerged Thursday with the release of
financial disclosure statements by consultants who have been hired by the
state since the start of the power crunch.
Among those disclosing stock ownership were two key negotiators of long-term
energy contracts and two workers hired to purchase electricity from
generators, including some of the firms in which they hold an interest.
Several other consultants who played key roles in the state's energy efforts
decided not to file financial disclosure statements, citing legal exemptions
under state law.
Among those who did not file the financial disclosure statements were a pair
of executives at two Wall Street firms that stand to make $14 million if the
state buys California's power grid. Of about 50 consultants hired by the
state in the past six months, 27 filed the disclosures.
The disclosures follow a firestorm in Sacramento last month over the hiring
by Gov. Gray Davis of two media consultants also employed by Southern
California Edison, the troubled utility that is negotiating with the state
over a bailout package.
Steve Maviglio, a Davis spokesman, said the governor's legal staff was
reviewing the financial disclosure forms for any potential conflicts of
interest.
"If there's anything inappropriate," Maviglio said, "then we'll deal with
it."
Republicans, however, said the hired workers had revealed overt conflicts
that clearly violated state law.
Secretary of State Bill Jones, a Republican running for governor against
Davis next year, said the revelations call into question the work performed
by the consultants on high-priced energy contracts that are "going to
mortgage our children's future for decades to come."
"If you show a conflict, the potential is there for collusion," Jones said.
"I'm not accusing anyone, but that's why you have disclosure."
Rob Stutzman, a state GOP spokesman, said he was particularly troubled
because the consultants had delayed filing the disclosure forms for months.
Under state law, the forms are supposed to be submitted within 30 days after
the consultants go to work for the state.
Most of the energy consultants, who could not be reached for comment,
reported owning relatively small amounts of stock in energy firms, generally
less than $10,000.
But one of the new workers, William Mead, disclosed that he owned between
$100,000 and$1 million in Calpine, a San Jose-based energy firm. Mead did not
report when the stock had been purchased.
Only one of the contractors reported selling off stock after coming to work
for the state.
Vikram Budhraja, president of Pasadena-based Electric Power Group LLC, on
Jan. 11 purchased between $10,000 and $100,000 in stock of Dynegy, a
electricity and natural gas producer. He sold it off on Jan. 29, 10 days
after he came to work for the state. Budhraja has been a top negotiator of
the state's long-term energy contracts, which have included a deal concluded
March 2 with Dynegy.
Richard Ferreira, a retired Sacramento Utility District executive hired by
the state to negotiate long-term power contracts, reported the purchase of
between $2,000 and $10,000 of stock in Calpine, a San Jose-based energy firm,
in August 2000. He also purchased a similar amount of stock in General
Electric Co., which produces power plant equipment, in April 2000.
Bernard Barretto, an energy trader, reported that he owned an undisclosed
amount of stock in Enron Corp., a big Texas-based energy firm. Elaine Griffin
purchased between $10,000 and $100,000 in Calpine stock on Feb. 1, less than
three weeks before she came to work for the state as an energy trader.
Constantine Louie, an energy scheduler, reported owning between $10,000 and
$100,000 in Calpine stock.
Republicans took credit for forcing the Davis administration to file the
reports, a charge the governor's office brushed aside.
Jones, the secretary of state, held a news conference Tuesday to complain
about the failure of nearly all the state's energy consultants to file any
sort of financial disclosure forms. The statements were only made available
late in the afternoon Thursday, months after many consultants went to work
for the state.
Maviglio, the governor's spokesman, said the delays were explained in part by
negotiations that began in March with the Fair Political Practices
Commission, the state's ethics watchdog, to determine if the consultants were
required to file the forms.
He also suggested that Jones' accusations were fueled more by campaign
politics than any devotion to constitutional duty.
"One needs to question why the secretary of state is using taxpayer money to
investigate something beyond his jurisdiction," Maviglio said. "That's why we
have an FPPC, to look at these kinds of things."

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

California; Metro Desk
THE ENERGY CRISIS Plan Uses Public in Refund Demand Legislature: Democrats'
proposal to pressure 'greedy' firms is attacked by GOP as political ploy.
CARL INGRAM
TIMES STAFF WRITER

07/13/2001
Los Angeles Times
Home Edition
B-10
Copyright 2001 / The Times Mirror Company

SACRAMENTO -- The Democratic-led state Senate intends to fill constituent
mailboxes with a taxpayer-financed appeal urging Californians to demand
nearly $9 billion in energy price refunds from "greedy out-of-state power
generators."
Senate leader John Burton (D-San Francisco) said the mailers will ask
Californians to join the Senate and Gov. Gray Davis in insisting that the
Federal Energy Regulatory Commission order the refunds of alleged overcharges.
Senate Democrats set the high target despite a federal mediator's ruling
against Davis earlier this week. The mediator said California would be
entitled to only about $1 billion in generator overcharges, not the $8.9
billion that Davis has fought for.
Senate officers said the cost of the mail campaign will be paid from the
budgets of senators, at taxpayer expense, as part of the Legislature's
constituent service mail program.
But Republicans attacked the mailer as political propaganda that may violate
state law and Senate policy barring issuance of "partisan" documents at
public expense.
Sketchy details of the quietly developed project surfaced on the Senate floor
Thursday. Staffers who worked on it said it was virtually impossible to
calculate the program's cost.
But they indicated that if all 26 Democrats agreed to send up to 30,000
mailers each to constituents, the postage alone would cost $140,400.
If each mass mailing exceeded 30,000 pieces, a higher postage rate would
apply, raising the cost, officials said.
In the mailer, constituents are asked to return an attached card to their
state senator, urging "full refunds of the outrageous prices charged by the
greedy out-of-state power generators."
Cynthia Lavagetto, manager of the Senate mail program, said each member will
decide what do do with the returned cards, including simply filing them or
sending them on to FERC.
Lavagetto said a prototype mailer was prepared with the help of the Select
Committee on Citizen Participation, a panel that has no chairman or members,
since it has not been activated this year. But it does maintain an office and
has three staffers on the Senate payroll.
Burton dismissed the Republican charges of partisanship as baseless. "We do
this all the time on a variety of issues," he said. "We're saying, 'Stop
stealing California's money.' "
But Sen. Ross Johnson of Irvine, the Senate's senior Republican, denounced
the mailing as clearly partisan. He said it appeared to reflect a developing
2002 election strategy of Davis and Democrats to blame the FERC and
out-of-state generators for California's energy mess.
"I seriously question the appropriateness of using taxpayer money to get
people to lobby [for the refunds]," Johnson said.
Johnson and Sen. Ray Haynes (R-Riverside) suggested that Democrats turn their
criticism to municipal utilities, including the Los Angeles Department of
Water and Power. Some utilities charged the state even higher prices last
winter than did private generators.
"Why are they not attacking the DWP?" Johnson asked.
He noted that S. David Freeman was running the DWP at the time some of its
highest prices were charged to the state, which is buying power for
California's financially crippled utilities. Later, Davis hired Freeman as
his top energy price negotiator.
"Doesn't David Freeman more properly belong in that same jail cell as the guy
called Spike than he does in the governor's office?" Johnson asked.
"Spike" has become a character in the California energy debate, thanks to
Atty. Gen. Bill Lockyer, who is investigating whether power sellers engaged
in price-gouging and antitrust behavior.
In an interview with the Wall Street Journal in May, Lockyer said he would
"love to personally escort [Enron Corp. Chairman Kenneth] Lay to an 8-by-10
cell that he could share with a tattooed dude who says, 'Hi. My name is
Spike, honey.' "

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

COMPANIES & FINANCE THE AMERICAS - Surging energy sales behind Enron advance.
By JULIE EARLE.

07/13/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Enron, the US energy trader, yesterday posted a 40 per cent rise in
second-quarter profits to $404m, due to surging gas and electricity sales in
North America and Europe.
The Houston-based company also said it would continue to grow aggressively in
Europe and seize any opportunities to expand in the US, after regulators on
Wednesday ordered the formation of an organisation to open the North American
electricity market.
Jeff Skilling, Enron chief executive, said the company had its sights set on
Europe for strong earnings growth, which it hopes will eventually match North
America.
The company's wholesale business unit, the group's main profit driver,
derives 70 per cent of its business from North America.
"We see more growth opportunity in Europe than in North America. Gas volumes
are up more than 100 per cent (in the quarter)," Mr Skilling said. "The gas
and electric market in Europe is almost as big as North America and we got an
early start."
Mr Skilling said a decision by the Federal Energy Regulatory Commission to
order the formation of four grid organisations to optimise the transmission
of electricity in parts of the US was hugely important.
He estimated only 20 per cent of the wholesale market for electricity could
be accessed and the decision would take this to 90-95 per cent.
Mr Skilling said Enron, which has transformed itself from a pipeline company
into a large energy trader, was focused on its volumes, not revenues, which
jumped to $50.1bn in the quarter, from $16.9bn a year ago.
The only poor performer was the broadband division, which trades space on
fibre-optic networks. The unit posted a loss of $102m in the quarter, against
an $8m loss a year ago, and the company said it would cut costs there.
Enron's result of $404m, or 45 cents a share, compared with $289m, or 34
cents, in the same quarter a year ago.
Analysts had been expecting 42 cents a share.
By the close in New York, the company's shares were trading 45 cents higher
to $49.55. See Lex.
(c) Copyright Financial Times Ltd. All rights reserved.
http://www.ft.com.

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

Lex - Enron.

07/13/2001
Financial Times - FT.com
(c) 2001 Financial Times Limited . All Rights Reserved

Be careful of the company you keep. Having enjoyed its status as a
telecommunications play last year, Enron is now suffering with its new
friends. The US energy trader has dropped by 40 per cent since the start of
the year - underperforming the market by a third - despite the earnings
momentum in its core energy trading business.
A 40 per cent increase in net income in the second quarter, even allowing for
inevitable questions over earnings quality, is impressive. The strength of
the energy trading business, with volumes up by almost 60 per cent, is more
than enough to offset the misery in the broadband trading business.
However, the broadband division's $102m losses are shocking, even in these
difficult times. The market has collapsed, partly owing to credit problems in
the telecoms sector. Enron's cost base is completely out of kilter with the
opportunity. At least it should not be too hard to put that right. Actual
investment in assets is limited; and by reallocating staff to the
fast-growing energy trading divisions, restructuring costs can be kept to a
minimum.
Broadband is not the only worry. California's troubles have not affected
trading volumes, but regulatory risk remains, while promises on asset sales
have not been met. Trading on 23 times 2002 forecast earnings, the valuation
looks fair for a fast-growing trading company. The upside lies in convincing
investors to give the company more credit for its value-added risk management
services. The long-term potential of broadband trading, meanwhile, is thrown
in for free.
(c) Copyright Financial Times Group.
http://www.ft.com.

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

UK: Paladin says Enron sells entire stake.

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - UK oil and exploration company Paladin Resources
said on Friday that U.S. energy firm Enron had sold the whole of its 19
percent holding.
Enron, which was Paladin's largest shareholder, sold its stake of 40 million
shares at 44 pence via HSBC.
A Paladin spokesman said the move would increase liquidity and broaden its
shareholder base.

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

White House adviser targeted for dealings with Salvation Army
By RON FOURNIER
AP White House Correspondent

07/13/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - Senior White House adviser Karl Rove, increasingly a target
of criticism from Democrats and Republicans, wound up at the center of a new
storm over his dealings with the Salvation Army.
White House aides rallied to his side, and Rove was unapologetic. But
Democratic National Committee chairman Terry McAuliffe called for
congressional hearings.
"I think the truth needs to come out," McAuliffe said Thursday. "Let's have
hearings and get to the bottom of this."
At issue was the Salvation Army's push for a regulation allowing religious
charities to practice workplace discrimination against gays, and Rove's
actions on behalf of the group. Rove said he was simply doing his job.
While McAuliffe called for hearings, Senate Majority Leader Tom Daschle,
D-S.D., seemed less riled. "Karl Rove is a very respected individual and I
wouldn't have any comment to make," Daschle said.
Thursday's flap was not the first for Rove, who oversees politics, strategy
and public liaison at the White House.
When Sen. James Jeffords bolted the GOP and turned the Senate over to
Democrats last month, Republicans accused Rove of alienating the Vermont
lawmaker during the tax-cut debate. He was fingered, too, for not warning
Bush earlier that Jeffords might jump ship.
When Rove sat in White House meetings on policy that could impact his stock
portfolio, Democrats demanded to know whether his holdings with Houston-based
Enron Corp. and Intel Corp. created a conflict of interest.
When Bush crossed some military advisers and suspended Navy bombing on the
Puerto Rican island of Vieques, Rove's involvement in the case was held up as
proof by critics that the decision was politically-motivated.
Rove's involvement in the Salvation Army case has stirred debate in
Republican and Democratic circles about whether he wields too much power and
is too political for the White House.
The White House rejected the Salvation Army's request Wednesday, but only
after the revelation of an embarrassing Salvation Army memo. The memo said
the administration had promised to issue a regulation protecting it and other
religious charities from efforts to prevent such discrimination in exchange
for the Salvation Army's support of Bush's plan to open government programs
to religious groups.
White House officials left the impression that no senior officials were
involved in the discussions, failing to point out Rove's activity until
Thursday.
In a telephone interview, Rove said he recalled having just three or four
brief discussions on the topic. He received a request from a Salvation Army
ally to looked into the rule, sent the ally to the White House faith-based
office, forwarded the written request to a government lawyer and was told
later by the lawyer, "We're not certain there's anything we can do."
The lawyer, Jay Lefkowitz, told reporters the request lay dormant after his
discussion with Rove.
Rove rejected the criticism. "My job is not to say, `Don't send me something
or call me.' My job is to keep my eyes and ears open and send things to the
appropriate departments," he said.
Some top Republicans outside the White House said Rove has become a
lightening rod.
"Part of his role is to be a deflection shield for the president," said GOP
consultant Rich Bond. "Everytime Karl takes a hit, it's one less hit the
president has to take. Karl knows that and he is a big boy."
Aides say the president is not troubled by Rove's actions, even joking about
the controversies.
White House chief of staff Andrew Card also defended Rove.
"I may be naive, but we have no problem of division on the senior level,"
said Card. "I was in the Reagan White House when we had three clear camps ...
We don't have that here."
Aides do acknowledge, however, that there is some resentment of Rove in the
lower ranks of the White House. Some grumbled that Rove did not let White
House press secretary Ari Fleischer know Wednesday about his involvement in
the Salvation Army case. Others, still tired from a tough campaign and
frustrated by their new jobs, said they resent Rove's wide reach.

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

UK: Bidder list for Southern Water grows-report.

07/13/2001
Reuters English News Service
(C) Reuters Limited 2001.

LONDON, July 13 (Reuters) - More potential bidders have emerged that may
challenge Italian utility ENEL for Southern Water, the British regional
utility put up for sale by its parent Scottish Power Plc earlier this year, a
trade magazine reported on Friday.
Utility Week said British gas and homes services retailer Centrica had teamed
up with French utility Vivendi Environnement , which already owns UK water
assets, "to consider a bid".
But it cited unnamed sources saying the German-owned investment bank WestLB
Panmure, which was behind a management buyout of Southern Water's neighbour
Mid Kent Water earlier this year, had "emerged as front-runner in the past
week".
ENEL has said it is interested, and according to Reuters' industry sources
Scottish Power's floor price is 1.7 billion pounds ($2.4 billion) excluding
any attached debt.
Scottish Power said in March the business was for sale.
It needs the cash to help fund its own plans for expansion in the United
States, where industry sources say it has held talks on buying Portland
General, a power utility owned by Enron Corp , which neighbours the UK
group's own PacifiCorp arm.

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

DPC not to re-start work on Phase II work
Our Regional Bureau NEW DELHI

07/13/2001
Business Standard
3
Copyright (c) Business Standard

Enron-promoted Dabhol Power Company (DPC) today said that Enron Corp chairman
Kenneth Lay during his meetings with the Centre and the Maharashtra
government had not agreed to any proposal to complete the construction of
phase-II of the power project.
"Dabhol Power Company believes that a decision to recommence construction
cannot be made unless various issues relating to the project are completely
resolved," DPC said in a statement.
It said that any discussion that Lay had on recommending construction of
phase-II was in the context of the current uncertainties surrounding the
project.
DPC said that contractors working on the project resorted to termination due
to non-payment of their dues as lenders had stopped disbursing funds.
"This decision was taken as a result of continuing defaults by MSEB
(Maharashtra State Electricity Board), including MSEB's repudiation of the
PPA, their failure to pay outstanding invoices and their stated unwillingness
to accept phase-II power, as well as failure of the government guarantors to
honour their payment guarantees," said the statement.
It added that the situation had not changed.

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

California Power Bills Exceed Refunds, Judge Says (Update4)
2001-07-12 21:40 (New York)

California Power Bills Exceed Refunds, Judge Says (Update4)

     (Adds legislator comment in sixth paragraph, details from
judge in 11th paragraph, negotiator comment in 12th paragraph.)

     Washington, July 12 (Bloomberg) -- California's debts to
power sellers for electricity purchases exceed any refund the
state can claim for alleged overcharging, a judge overseeing
settlement talks said in a report to federal regulators.
     California and its utilities may be owed more than $1 billion
on claims generators overcharged them, Administrative Law Judge
Curtis Wagner wrote in a report to the Federal Energy Regulatory
Commission. California alleges power sellers like Duke Energy
Corp., Enron Corp. illegally inflated prices by $8.9 billion.
     ``While there are vast sums due for overcharges, there are
even larger amounts owed to energy sellers'' by California and its
utilities, Wagner wrote. He said the state is owed ``hundreds of
millions of dollars, probably more than a billion dollars.''
     The decision strengthens the generators' claim that the
state's request for billions isn't supported by the facts. Energy
companies have offered a total of $716 million in refunds to the
state, Wagner said.
     FERC-ordered negotiations between the state and the energy
sellers broke down without an agreement this week. FERC will
decide on the size of refunds within 60 days. California Governor
Gray Davis has said the state will sue if it does not receive the
refunds it demanded.
     ``I find it unlikely that someone will not be unhappy enough
to go to court,'' said State Senator Debra Bowen, a Democrat from
Los Angeles. ``There's too much money at stake.''

                         Wagner's Report

     FERC will use Wagner's report to calculate the size of any
refunds. California could receive refunds in the form of credit
against power-buying debts. In his report, Wagner didn't say how
much the state and its utilities owe to power companies.
     ``Can a cash refund be required where a much larger amount is
due the seller? The chief judge thinks not,'' wrote Wagner, who is
FERC's chief administrative law judge.
     Wagner provided suggestions to the FERC commissioners on how
to set any refunds. He urged that they calculate potential
overcharges beginning October 2000. California had urged the
settlement be figured from May 2000.
     Davis criticized that decision, calling it ``a $3 billion
free gouge for the generators'' in a statement released by his
office.
     The judge said California had rejected a settlement offer he
made during the talks. He did not say what that settlement offer
was. He said California would not budge from its initial demand.
He also said California did not provide him some of the background
information he requested until this week.
     ``If we had more time we might have been able to respond more
quickly, but we did the best we could,'' said Michael Kahn,
chairman of the Independent System Operator, the state's electric
grid manager. He led the state delegation.

                    Heart of Dispute

     At the heart of the dispute are federal regulations that
require power sellers to charge only those rates deemed by federal
regulators to be ``just and reasonable.'' FERC had price caps in
place when some of the disputed power purchases were made.
     Energy companies claim that rising natural-gas prices and a
lack of adequate supply pushed prices up. The state accuses the
companies reaping unreasonable profits.
     Davis has made attacks on power generators a staple of his
response to the energy crisis, and has accused them of gouging the
state in dozens of speeches since January. He said that if the
state isn't paid $8.9 billion, it would sue for up to $20 billion.
     Energy executives accuse Davis and California political
leaders of attempting to scapegoat the energy companies for a
failed deregulation plan that led to soaring wholesale prices last
year. The state's largest two utilities can't pay for their power.
     ``It's pretty clear that the state has no particular interest
in resolving this,'' Enron Chief Executive Jeffrey Skilling said
in an interview with Bloomberg News. ``It makes for good political
fodder, and so I think they'll spend a lot of time making a lot of
noise about it.''
     Several other energy companies praised the judge's
recommendations.
     ``We agree with the judge's position that the $8.9 billion
refund number is totally unsubstantiated,'' Duke Energy Corp.
spokesman Tom Williams said.
     PG&E Corp.'s Pacific Gas & Electric and Edison
International's Southern California Edison, the state's largest
investor-owned utilities, ran up more than $14 billion in debt
buying electricity last year. The state stepped in and began
buying power for them in January, and has spent more than $7
billion.

California Governor Casts Blame for Crisis, to His Benefit
2001-07-13 03:03 (New York)

California Governor Casts Blame for Crisis, to His Benefit

     San Francisco, July 13 (Bloomberg) -- California Governor
Gray Davis's popularity is bouncing back, and pollsters credit the
Democratic lawmaker's campaign to blame the state's energy
problems on out-of-state power companies.
     Davis has criticized Duke Energy Corp., Enron Corp. and other
power sellers as price gougers since January. This week, Davis
used a power-plant opening as a platform to claim that energy
sellers are ``bleeding us dry.'' The Democratic state attorney
general and Democratic-controlled state Senate are investigating
the firms for market manipulation.
     The governor is winning support because of his attacks. A Los
Angeles Times poll in June showed that 86 percent of Californians
believed power generators distorted prices. Davis's approval
rating rose to 52 percent of registered voters in June, from 46
percent in early April, his lowest since being elected in 1998,
his pollster, Paul Maslin, found.
     ``Gray Davis is very good at licking his fingers and seeing
which way the political winds blow,'' said Bruce Cain, a political
science professor at the University of California at Berkeley.
``And he's found good villains.''

                    Outlook for Settlement

     The politics may make it harder for the state to reach a
settlement with energy companies for claims they overcharged the
state by $8.9 billion, analysts say. A federal judge overseeing
settlement talks said the state is owed far less. Davis says the
state will sue for $18 billion if its demands aren't met.
     ``There is no way you are going to get any kind of agreement
from someone making such audacious claims,'' said Donato Eassey,
an energy analyst at Merrill Lynch & Co. in Houston.
     The refunds may be secondary to Davis's effort to be re-
elected in 2002, a victory that political analysts say position
him as a contender for national office in 2004.
     ``He's in good shape going into 2002, and if he wins, there's
the inevitable speculation about whether he eyes a run for
president in 2004,'' Cain said.
     Just months ago, Davis's public approval ratings were at
their lowest point since he was elected, according to a Field
Institute poll in April.
     PG&E Corp.'s utility, the state's largest, was in bankruptcy.
Wholesale-power prices were rising, and millions of Californians
lost power in a string of blackouts caused by reduced power
reserves.

                         Governor Rebounds

     The governor was widely criticized for failing to act swiftly
to end the crisis. Now Davis seems to be recovering, analysts
said.
     While vilifying the power companies, the first-term governor
has also been spearheading the state's response to the energy
crisis. He has created a team to negotiate a financial rescue
package to save Edison International's Southern California Edison
utility from bankruptcy, started an $800 energy conservation drive
and pushed for more power plants to be built.
     The energy companies lashed back at Davis this week. A
spokesman for Enron Corp., the world's largest energy trader,
accused Davis and California leaders of conducting a political
``witch hunt.''
     ``The last thing they want to do is take responsibility for
the problem they created,'' Enron spokesman Mark Palmer said.
``They set about looking for the biggest villains.''
     Enron filed suit against a California state Senate committee
investigating allegations of market manipulation, accusing the
panel and its Democratic chairman in a letter of seeking a
``scapegoat'' for a failed deregulation law.

                   Plotting his Response

     Davis began plotting his response to the crisis almost
immediately after it became public in January, said Garry South,
his chief political strategist. Step one, Davis aides said, was to
blame the energy companies that were profiting from the state's
woes. Davis targeted a half-dozen companies. In addition to Enron
and Duke, Mirant Corp., Reliant Energy Inc., and Williams Cos.
were placed in the crosshairs.
     ``There was a group of perpetrators from out of state
manipulating this system and screwing consumers,'' South said.
``We had to explain how this thing happened.''
     Republicans criticize Davis for inaction on the crisis, while
acknowledging he is favored to win re-election going into next
year's campaign.
     He leads three potential rivals -- Secretary of State Bill
Jones, banker William Simon, the son of former Treasury Secretary
William Simon, and former Los Angeles Mayor Richard Riordan,
according to the Times poll of 1,541 state residents conducted
June 23-26.
     ``He will be the favorite,'' said Rob Stutzman, a consultant
for the California Republican Party.

                         Worries Ahead

     Davis still has worries as the state struggles to address the
energy crisis, analysts say.
     PG&E Corp.'s Pacific Gas & Electric filed for bankruptcy in
April. Edison International's Southern California Edison, the No.
2 utility, is struggling to overcome legislative opposition to the
financial-rescue package negotiated by Davis.
     Davis may be blamed, analysts say, if the state Legislature
refuses to ratify the rescue plan for Edison and the utility files
for bankruptcy. Republicans and many Democrats in the Legislature
oppose the agreement, known as a memorandum of understanding.
     ``The MOU's dead, and the likely scenario is for the utility
is to go into bankruptcy,'' said Peter Navarro, an associate
professor of economics and public management at the University of
California at Irvine.
     California voters may receive unpleasant reminders of the
crisis all summer. The state has already suffered through six days
of rolling blackouts, and more are predicted.
     ``As soon as the lights go out, it's Gray's fault,'' Navarro
said.


Sheila - As far as proving the money belongs to Credit, have we had anything back from
Goldmans on docs opening a new ECI bank account? From Credit Trading's perspective,
I think we can demonstrate that ENA had no economic interest in this account:

- Credit traders directed all of the trading activity in this account
- all trading positions and P&L were reported in Credit's DPR and in Enron Credit Inc
- all margin requirements were funded from Credit's Citibank account in London

Thanks
Simon

 -----Original Message-----
From: 	Hemsley, Simon
Sent:	16 December 2001 14:02
To:	Glover, Sheila
Cc:	Hickerson, Gary; Shackleton, Sara; Moehlman, Cathy; Perkins, Mary; Seyfried, Bryan
Subject:	New wire requests - 17 Dec 01

Sheila - Attached are revised faxes to send to Bears and MSDW - could you co-ordinate signatures in the US again,
or would you like Bryan and Markus to sign? I have changed the MSDW and Bears payments to pay into Enron Credit
Limited's account at Citibank.

We have $10,924,975.00 in the main ECI account, and $630,258.41 in the ECTEF Inc account, and have asked for
$10.9m and $0.6m to be paid to Citibank. We also have some more funds coming into the account from the sale of
Loral bonds & MLM shares on Tuesday or Wednesday. We can move these amounts when the trades have settled.

Can you ask Bears to let us know as early as possible on Monday whether they will be able to pay the money over?

Thanks
Simon

 << File: BEST Cash Transfer ECT Europe Finance Inc 17 Dec.doc >>  << File: BEST Cash Transfer Enron Credit Inc 17 Dec 01.doc >>  << File: MSDW Cash Transfer Enron Credit Inc 17 Dec 01.doc >>

 -----Original Message-----
From: 	Glover, Sheila
Sent:	14 December 2001 23:40
To:	Perkins, Mary; Seyfried, Bryan; Hemsley, Simon
Cc:	Hickerson, Gary; Shackleton, Sara; Moehlman, Cathy
Subject:	Bear Stears Wire requests of 12/14/01

Mary, Bryan and Simon,

Bear was able to get out the $3.9 million to ECT Investments out to us via fed wire.

The two wires for Enron Credit Inc. and ECT Europe Finance Inc. were via Swift which has an earlier cut-off.   Additionally, Mike Nierva said that the wire requests were not in good form.  He said his wire department usually sees a US bank with a FOR FURTHER CREDIT to the foreign bank.

I would appreciate some help in getting this revised to send to Bear Stearns early on Monday.

Mike Nierva is consolidating the balances in the main account,  102-25786-2-7.  Additionally, he completed the FX trades today.

I also need this for MSDW for the $131,000 wire request.  MSDW has a policy not to send money to foreign banks.

Thanks. Sheila

 << File: BEST Cash Transfer ECT Europe Finance 12-14-2001.doc >>      << File: BEST Cash Transfer Enron Credit Inc.12-14-2001.doc >>

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

From:  </O=ENRON/OU=NA/CN=RECIPIENTS/CN=SGLOVER>
To: rich.sussman@gs.com
CC: Hemsley, Simon </O=ENRON/OU=NA/CN=RECIPIENTS/CN=EU/CN=RECIPIENTS/CN=SHEMSLEY>
Date: Tuesday, December 11, 2001 7:20:14 GMT
Subject:

Rich,
I would like Goldman Sachs to release the following funds based upon balances as of December 10, 2001.  We will wire out the Hedge and Credit balances.  I would like to transfer the Convert balances to the Convert book.

I will prepare wire requests and send to you.

Thanks. Sheila

Cash Balances for December 10, 2001 for ENA- TOP and
Results sorted by Group, Account Number, Currency and Account Type.

ENA- TOP

Currency	Account Name	Account Number	Account Type	TD Balance	SD Balance

U S DOLLAR	Hedge	206447	3	                    1,552.33 	                   1,552.33
 	Hedge	3366888	6	                 984,062.06 	                984,062.06
				                 985,614.39 	                985,614.39

 	Convert	3367171	6	                  (41,329.96)	                 (41,329.96)
 	Convert	225783	1	                        (45.00)	                       (45.00)
				                  (41,374.96)	                 (41,374.96)

 	Credit	207005	3	                    5,115.90 	                   5,115.90
 	Credit	225784	1	                              -   	                             -
 	Credit	225784	6	                 291,817.71 	                291,817.71
 	Credit	3367170	6	              1,196,354.20 	             1,196,354.20
				              1,493,287.81 	             1,493,287.81

				              2,437,527.24 	             2,437,527.24


Re:  El Paso counterparty name change

---------------------- Forwarded by Jennifer Bagwell/NA/Enron on 01/04/2001
02:42 PM ---------------------------
From: Tana Jones@ECT on 01/04/2001 02:28 PM
To: Bob Bowen/HOU/ECT@ECT, Laurel Adams/HOU/ECT@ECT, Andrea R
Guillen/HOU/ECT@ECT, Larry Joe Hunter/HOU/ECT@ECT, Gordon
Heaney/Corp/Enron@ENRON, Janie Aguayo/HOU/ECT@ECT, Derek
Bailey/Corp/Enron@ENRON, Diane Anderson/NA/Enron@Enron, Kevin
Meredith/Corp/Enron@ENRON, Scott Tackett/Corp/Enron@Enron, Celeste
Cisneros/NA/Enron@Enron, Tiffany Williams/NA/Enron@Enron, Kim S
Theriot/HOU/ECT@ECT, Dianne Seib/CAL/ECT@ECT, Melissa Ann Murphy/HOU/ECT@ECT,
William S Bradford/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Tanya
Rohauer/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Tracy Ngo/PDX/ECT@ECT, Lesli
Campbell/HOU/ECT@ECT, Veronica Espinoza/Corp/Enron@ENRON, Paul
Radous/Corp/Enron@ENRON, Wendi LeBrocq/Corp/Enron@Enron, Russell
Diamond/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Edward Sacks/Corp/Enron@Enron,
Nidia Mendoza/HOU/ECT@ECT, Bradley Diebner/HOU/ECT@ECT, Wendy
Conwell/NA/Enron@ENRON, Brent Hendry/NA/Enron@Enron, Sara
Shackleton/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Carol St Clair/HOU/ECT@ECT,
Susan Bailey/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Samantha
Boyd/NA/Enron@Enron, Robert Bruce/NA/Enron@Enron, Stephanie
Panus/NA/Enron@Enron, Marilyn Colbert/HOU/ECT@ECT, Diane
Ellstrom/HOU/ECT@ECT, Lynn E Shivers/LON/ECT@ECT, Bill D Hare/HOU/ECT@ect,
Leslie Reeves/HOU/ECT@ECT, Jason Moore/HOU/ECT@ECT, Dianne Seib/CAL/ECT@ECT,
Samuel Schott/HOU/ECT@ECT, Anthony Campos/HOU/ECT@ECT, Bernice
Rodriguez/HOU/ECT@ECT, Mary G Gosnell/HOU/ECT@ECT, Dale Neuner/HOU/ECT@ECT,
Karen Lambert/HOU/ECT@ECT, Frank L Davis/HOU/ECT@ECT, Carrie
Southard/LON/ECT@ECT, Amber Ebow/HOU/ECT@ECT, Adnan Patel/Corp/Enron@ENRON,
Melissa Ann Murphy/HOU/ECT@ECT, Stacey Richardson/HOU/ECT@ECT, Lisa
Lees/HOU/ECT@ECT, Georgi Landau/NA/Enron@ENRON
cc: Jeffrey T Hodge/HOU/ECT@ECT, Jennifer Bagwell/NA/Enron@ENRON, Taffy
Milligan/HOU/ECT@ECT

Subject: Merger - El Paso Merchant Energy, L.P.

We have received copies of a Certificate of Merger filed with the Delaware
Secretary of State on 12/22/00, effective 12/31/00, wherein El Paso Merchant
Energy-Gas, L.P. (Global Counterparty #72297), a Delaware limited
partnership, merged with and into El Paso Merchant Energy, L.P. (Global
Counterparty #53350), a Delaware limited partnership, with El Paso Merchant
Energy, L.P. (Global Counterparty #53350) as the surviving corporation.

By virtue of this merger, the ISDA Master Agreement dated 12/01/99 should now
reflect El Paso Merchant Energy, L.P. as the Counterparty.  In connection
with this merger, Credit will be getting a new parent guaranty from the
Counterparty.  Upon its receipt, copies will be distributed.

Copies of the Certificate of Merger will be distributed.