FYI,

This is where we are.

Shone,

Please can you call me when you get in.

Thanks James

---------------------- Forwarded by James New/LON/ECT on 07/12/2000 12:10
---------------------------

	Enron Europe

	From:  Hugo Moreira                           07/12/2000 11:46

To: David Hardy/LON/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Oliver
Gaylard/LON/ECT@ECT, Jitendra Patel/Market Risk Management/LON/ECT@ECT
cc: James New/LON/ECT@ECT

Subject: Implemetation Schedule for London RisktRac XL Exposure feed Templates


Please confirm that Beck's comments nos 1 and 6 are acceptable for the loi.
I would include in this email, but I don't have an electronic version with
me.  Reagan, if you have an electronic version, could you forward it to me?

Thanks,

Kay


fyi...

-----Original Message-----
From: navigator@nisource.com [mailto:navigator@nisource.com]
Sent: Friday, October 26, 2001 10:04 AM
To: navigator@nisource.com
Subject: LANHAM COMPRESSOR STATION

                      COLUMBIA GAS TRANSMISSION CORPORATION
                        NOTICE TO ALL INTERESTED PARTIES
                                OCTOBER 26, 2001

Notice ID: 3217
5 - NO RESPONSE REQUIRED

The turbine at Lanham Compressor Station is out of service due to unexpected
maintenance.  A return to service date of mid November is anticipated.

If you have any questions, please feel free to contact your Customer Services
Representative.


I am wondering if you know which moving company Enron uses to move people to
Houston. Despite the fact that I haven't seen the formal offer I think I
should book a  mover so I don't get stuck. Let me know if you know or if
there is someone in Houston I should talk to (Jennifer?).

Thanx,

Chris


Here's the email that I mentioned in my voicemail.  Take care, Mark

 -----Original Message-----
From:  james.doty@bakerbotts.com@ENRON
[mailto:IMCEANOTES-james+2Edoty+40bakerbotts+2Ecom+40ENRON@ENRON.com]
Sent: Thursday, March 15, 2001 9:08 AM
To: mmetts@enron.com
Subject: SEC Chairmanship and James R. Doty

  Mark:  If this is not what you had in mind, let me know. I have tried to
give you some detail to back up my claim that I can provided much-needed
stature and leadership to the SEC. I am also addressing what I think may be
some of the objections of constituencies in the corporate and financial
community who have, I believe,  told the Administration not to appoint a
lawyer and former member of the Staff of the SEC. (Of course, Arthur Levitt
was not a lawyer, and was a former head of the Amex, and has rammed through
one of the mose activist regulatory programs in SEC history! So what I am
offering, in part, is balance and respect for process).

1. The President has the opportunity, by appointing Jim Doty, to get the SEC
headed in a direction the corporate and financial community wants and to do
so with broad (indeed, enthusiastic) support from the agency itself, the
corporate and securities bar, the accounting profession and other
constituencies (including the NASDAQ, the NYSE, members of the Congressional
oversight committees and their staff on both sides of the aisle).

 Doty knows securities markets and practices through his work for securities
firms and is well aware of the issues of market structure that will face the
new Chairman--in this he favors continuing to encourage competition and
technological innovation in the markets, and is committed to keeping our
capital markets the best in the world.

 He understands the problems the accounting profession and the
standard-setting bodies are facing--including international accounting
standard issues--and is well equipped to be sure the private standard
setting regime we have relied on works well and with sensitivity to current
realities.  He will not be a "grenade thrower" on the complex
pooling/purchase issues now confronting the SEC and the FASB. (Here it will
be particularly important that the next Chariman give the FASB proposals on
impairment of goodwill in purchase transactions a fair hearing, and not
attempt to "strong arm" the private standard setters into a requiring
accelerated depreciation of goodwill: this is especially critical given the
fragile state of the technology sector.)

 Doty has spent his career advising boards of directors and senior
management on the practical problems businessmen face in dealing with the
SEC. He will bring to the job hands-on experience working with the business
community(corporate and financial), in solving the problems they face in
raising capital and complying with securities regulatory regimes--State,
Federal and cross-border.

 2. Doty has a national reputation as a corporate- and securities- law
expert, has published and is in demand as a speaker.  As a practicing
lawyer, however, Doty would bring some extraordinary qualifications to the
job of running the SEC, which are as folows:

          a. His record as General Counsel of the SEC from 1990-92
demonstrates an understanding of how to work effectively in governmnet.
Doty has the respect of the Staff and will bring credibility within the
building to accomplish needed reform.  During his tenure as the SEC's
General Counsel, with a Democratic majority in Congress, he had a major role
in reform initiatives to reduce costs of raising capital and streamline the
financial regulatory structure under President George H.W.Bush. These
included the Small Business Initiative, which reduced costs for small- and
first-time registrants, and structured finance initiatives to provide more
efficient access to capital markets for seasoned issuers.

          b. Doty is committed to using the exemptive authority under the
Securities Act of 1933 to promote more efficiency and lower costs in the
capital-formation process.  He knows where additional exemptive action or
repeal is needed--as in the Public Utility Holding Company Act, for
example--and he will be a knowledgeable and effective ally of the
Administration, including Cabinet officers, and the Republicans on the Hill,
in promoting further reform and efficiency.

         c. Doty will get the agency behind the President's proposal to
create individual retirement investment accounts for all members of the
workforce.  He is committed to helping the Administration get this done when
they decide to push for it, and knows how the issues of safety can be
practically addressed and the technical objections of critics overcome.

          d. Doty is a consensus-builder, a good listener and an effective
communicator. He is a Texan, a Rhodes Scholar and graduate of Rice
University. He has been active in the communities in which he has lived
(Senior Warden of Christ Church Cathedral in Houston, Vestryman of St.
John's Lafayette Square in D.C.). He is a good family man--his wife of 29
years presently serves in the First Lady's Correspondence Office. As a
BakerBotts Senior Partner, Doty can afford to do this for the sake of the
job well done and is not attempting to "polish his resume" for another job.

         e. Most important, Doty has worked tirelessly for this President,
knows the President and his style, and is loyal to the President.  He wants
the President to succeed and will work hard to make sure the policies and
practices of the SEC reflect well on the President and his Administration.


Ladies and Gentlemen,

Thank you all for participating on the associate and analyst PRC committee.
I believe that the PRC process is the most important tool we have to evaluate
Enron's talent, and your role in the process is critical.  With the all
important year-end PRC quickly approaching, I'd like to spend a little time
with you sharing not only my philosophy on the process, but also talking
about the mechanics of the process.  There will also be time to answer any
questions you may have.

To that end, please join me and Charlene Jackson for breakfast on Thursday,
November 30, at 8:30 a.m. in EB50M.  If you are unable to attend in person
and would like to participate by conference call, that can be arranged.
Please RSVP your attendance to Cheryl Kuehl at x3-9804.

I look forward to seeing you on November 30, and again, many thanks for
spending your time on this critical process.

Jeff


Please calendar.  Also, Thursday is my mom's birthday, so I need to remember
to shop for her at lunch tomorrow.

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 09/17/2000 09:08
PM ---------------------------
From: Travis McCullough@ECT on 09/17/2000 01:46 PM
To: Kay Mann/Corp/Enron@Enron
cc:

Subject: Project Manlove

Meeting at 1:00 Monday, EB 2868, in case you want to attend.

Travis McCullough
Enron North America Corp.
1400 Smith Street EB 3817
Houston Texas 77002
Phone:  (713) 853-1575
Fax: (713) 646-3490


Notice No. 01-183
June 6, 2001

TO:
All NYMEX Division Members
All COMEX Division Members
All NYMEX Member Firms
All COMEX Member Firms

FROM:
Neal Wolkoff, Executive Vice President

RE:
Briefing on Brent Market

There will be an informational seminar on the fundamentals of the Brent crude
market at 3:30 PM on Thursday, June 7, 2001 in the Seminar Room on the 10th
floor of the Exchange building.  The purpose of this meeting is to inform
potential NYMEX Brent traders about the factors that influence price and
other key issues unique to the Brent market.

There is no cost and attendance is open to all interested parties.

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

"http://208.206.41.61/email/email_log.cfm?useremail=tana.jones@enron.com&refdo
c=(01-183)"

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


Dave is around. Digs are OK, but it's odd that all this money was spent, given our current circumstances.

 -----Original Message-----
From: 	Mann, Kay
Sent:	Tuesday, November 27, 2001 12:32 PM
To:	Jacoby, Ben
Subject:	RE: NorthWestern

No need to hold off.  I'm not worried about GE.

I need Dave to sign one more document.  Is he around?

How do you like your new digs?

Kay

 -----Original Message-----
From: 	Jacoby, Ben
Sent:	Tuesday, November 27, 2001 12:32 PM
To:	Mann, Kay
Subject:	FW: NorthWestern

Kay:

Do you want to continue to hold off on the wire until the letter gets signed? FYI, Louise has given the OK to the wire.

 -----Original Message-----
From: 	stephen.swift@ps.ge.com@ENRON
Sent:	Tuesday, November 27, 2001 12:17 PM
To:	Mann, Kay; mike.barnas@ps.ge.com
Cc:	Jacoby, Ben; john.schroeder@ps.ge.com
Subject:	RE: NorthWestern

Kay,

The letter looks fine.  Please address the letter to Jeff Darst 1 River Road
Building 36-3E Schenectady, 12345 with a copy to me.

Jeff's fax is 518-381-1513.

Let me know if you need anything else.

Thanks,

Steve Swift

-----Original Message-----
From: Mann, Kay [mailto:Kay.Mann@enron.com]
Sent: Monday, November 26, 2001 6:17 PM
To: Swift, Stephen L (PS, CommOps); mike.barnas@ps.ge.com
Cc: Jacoby, Ben
Subject: NorthWestern

Gentlemen,

Pursuant to my discussion with Mr. Swift, I am enclosing a draft letter
for your review.

Kay

 <<Lttr to Steve re consent.DOC>>

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


FYI, Kim.

 -----Original Message-----
From: 	Roensch, David
Sent:	Monday, August 13, 2001 10:09 PM
To:	Watson, Kimberly
Subject:	Contacts for West End Teams

Per our conversation this afternoon:

The following is a list of contacts for the Teams I work with.  These are Go Too folks for information or questions about their respective areas and capabilities.....

La Plata & Ignacio Lateral
Larry Harrell   970-259-8238

Blanco Hub, San Juan Station and SJ Lateral
Jeff Greider  505-632-3876

Station 3 & Flagstaff Citizens interconnects
Chris Hulls  520-686-6298

Station 2
Hank Hull  520-774-2980

Station 1 & Kingman Citizens interconnect
Scott Hill   520-757-7505

Needles Station, Topac Lateral, Griffith & Calpine
Russ Ulibarri  520-768-4455

Please don't hesistate to contact me for questions in any of the areas but, do not feel like it is necessary.  If it expidites the necessary communication, please just go straight to these Team members.  These guys will keep me in the loop.  Thanks...


Andy:

Thanks for the quick response.  I will also be traveling later this week,
however, as always, I will be available by cell.  I will send you any
additional information from our side should it become available in the
interim!

Have a safe trip!

Chris

-----Original Message-----
From: Andy.Zipper@enron.com [mailto:Andy.Zipper@enron.com]
Sent: Monday, January 29, 2001 7:18 PM
To: Chris Edmonds
Subject: Re: FW: Concerns with Status of Enron Integration Testing

Chris,
I have asked our team to review the document you sent me and to ascertain
what the hold up is. One thing that has been made clear to me is that we
were ready to begin testing a month ago and had to idle a group of folks
while your development team caught up. This has created a bit of a manpower
crunch for us but we will fix it. I will respond to you when I know more. I
am out of the office next two days but available on Thursday and Friday.

Andy


Which airport will you be arriving at next Thursday?  I will likely fly in the night before and have you pick me up at my hotel.

Mike

Mike Etringer                         503.464.3836 (w)
Enron North America                            503.701.4516 (c)
West Power Origination                       503.464.3740 (fax)
121 SW Salmon Street 3WTC0306       michael.etringer@enron.com
Portland, OR 97232


thanks.

-----Original Message-----
From: Dorothy Rothrock [mailto:drothrock@cmta.net]
Sent: Monday, November 05, 2001 7:04 PM
To: Dasovich, Jeff
Subject: CEC workshop

mailbox:/C|/Program
Files/Netscape/Users/rothrock/Mail/Inbox?id=3BE73650.5E09504E%40cmta.net&number=685597234&part=1.2


Gerald/Steve - Suzanne will forward a list of all of ENA's contracts.

Do you nedd anything else?

Gerald Nemec@ECT
01/10/2001 03:22 PM
To: Rebecca W Cantrell/HOU/ECT@ECT, Stephanie Miller/Corp/Enron@ENRON
cc: Steve Van Hooser/HOU/ECT@ECT

Subject: PGE due diligence effort

Stephanie,  I have the copy of the contract so don't worry about that.  Do
you know of any other deals with PGT we currently hold?

Becky,  You knowledge of any other PGT deals we have along with the tariff
provisions would be appreciated.  I am trying to prepare a brief for Travis
by late tommorrow.

Thanks.
----- Forwarded by Gerald Nemec/HOU/ECT on 01/10/2001 03:16 PM -----

	Steve Van Hooser
	01/10/2001 02:38 PM

		 To: Stephanie Miller/Corp/Enron@ENRON, Rebecca W Cantrell/HOU/ECT@ECT
		 cc: Gerald Nemec
		 Subject: PGE due diligence effort

Stephanie and Becky,

I need your help with the PG&E credit exposure diligence described in Travis
McCullough's e:mail set forth below. Could you please forward me (i) copies
of the Service Agreement, Capacity Release materials and executed PGT
Agreement for the 67,000 MMBtu of transport acquired in 1998, and (ii) the
Tariff provisions that deal with the matters described in Travis' e:mail.
Also, what additional transportation transactions do we currently have on
PG&E entities.  Do you have a feel for that? We are supposed to be helping
Credit to get a handle on (a) PG&E exposure and (b) setoff opportunities as
to such exposure. Of course, Credit would like our input by Friday.

Thanks for your help.
Steve Van Hooser
----- Forwarded by Steve Van Hooser/HOU/ECT on 01/10/2001 02:27 PM -----

	Shari Stack
	01/09/2001 10:10 AM

		 To: Steve Van Hooser/HOU/ECT@ECT, Gerald Nemec/HOU/ECT@ECT, Alan
Aronowitz/HOU/ECT@ECT, Wayne Gresham/HOU/ECT@ECT, Mary Cook/HOU/ECT@ECT, Dan
J Hyvl/HOU/ECT@ECT, Nony Flores/HOU/ECT@ECT
		 cc: Jeffrey T Hodge/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Travis
McCullough/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT
		 Subject: PGE due diligence effort

My asst., Kaye Ellis, will be calling each of you this morning to see if you
can attend a short meeting today to discuss a due diligence effort with
regard to Pacific Gas  and Electric Company and its various subsidiaries.  We
have an overall exposure report from Credit which shows that Enron is exposed
to PG&E in virtually all of the commodities that we transact.

In the meeting today - Travis and I will help you identify the PG&E
entity/entities which may have transactions with Enron concerning your
particular commodity. We will ask you to pull the relevant master agreement
and provide the information set forth below.
Thank you in advance for your help,
Shari
   ----- Forwarded by Shari Stack/HOU/ECT on 01/09/2001 09:57 AM -----

	Travis McCullough
	01/09/2001 09:12 AM

		 To: Shari Stack/HOU/ECT@ECT, Andrew Edison/NA/Enron@Enron
		 cc: William S Bradford/HOU/ECT@ECT
		 Subject: PGE due diligence effort
Here is a list of the information that we will need to collect from each
master agreement:
Governing law;
summary of setoff provisions (in particular, does the contract give us the
right to setoff (i) only those transactions under the specific master, (ii)
transactions under other agreements between the same counterparties; or (iii)
transactions under other agreements between affiliates of the counterparties;
(v) all transactions or only those transactions that we elect to offset;
summary of termination provisions (automatic upon bankruptcy or insolvency of
a party? any notice requirements?)
summary of liquidated damages provisions (how computed?  provision for
two-way LD's (such that even the breaching party gets a payment if they are
in the money?)
We also need to discuss how we can get comfortable that all transactions were
properly booked under the correct master agreement, and that there are no
significant "glitches" in our transaction documentation.


---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 12/19/2000
08:32 PM ---------------------------

"John D. Martin" <J_Martin@baylor.edu> on 12/19/2000 03:25:19 PM
To: vkamins@enron.com
cc:
Subject: Latest

Vince,

I appologize for shipping another version of the paper so soon after the
last.  However, my wife picked me up for some last minute shopping at noon
and I wasn't sure I would get back to this before leaving tomorrow.  The
only changes in the two documents related to a sentence or two in the intro
plus the addition of "Unused information" at the end of the document.  The
unused stuff is made up of notes I made from Hamel, some news stories,
press releases, and random thoughts.  We probably won't use any of this
stuff but I wanted you to have it just in case it might prove useful.

The challenge we face at this stage (and where I can most use your help) is
in documenting Enron's risk management functions in a meaningful way.  This
may be best done through examples or in some other way.  I think that our
audience would appreciate our including some numerical and detailed
examples (even if they are to be placed in boxes or sidebars that don't
interrupt the flow of the article.  If you'll make a pass at what you feel
is appropriate I'll gladly polish on the words as i try to learn about what
you are doing myself.

Vince, I really am enjoying this learning experience.  You guys make a
wonderful "lab".

Sally and I are driving to Louisiana to pick up her mom tomorrow and then
driving to New Orleans and back to Waco by Saturday.  However, I will check
in my e-mail regularly.

Your friend,

John

 - Enron Transformation Paper12_19_00.doc

John D. Martin
Carr P. Collins Chair in Finance
Finance Department
Baylor University
PO Box 98004
Waco, TX 76798
254-710-4473 (Office)
254-710-1092 (Fax)
J_Martin@Baylor.edu
web:    http://hsb.baylor.edu/html/martinj/home.html


Public Service Says 1st-Qtr Profit Fell 5.9 Percent (Update2)
Bloomberg, 04/17/01

Enron Bandwidth Unit Reports Loss For First Quarter
Dow Jones Energy Service, 04/17/01

USA: Enron CEO uses naughty word on conference call.
Reuters English News Service, 04/17/01

Enron, Dynegy post healthy profit gains on energy demand
Associated Press Newswires, 04/17/01

USA: Enron Broadband posts expected loss amid mixed growth.
Reuters English News Service, 04/17/01

WSJ.COM WRAP: Enron, Dynegy Post Immpressive Results
Dow Jones News Service, 04/17/01

Action on energy trading floors reverberate in power-hungry California
Associated Press Newswires, 04/17/01

Energy Trading-Floor Gambits Perturb Power-Hungry US West
Dow Jones Energy Service, 04/17/01

High demand for power behind Enron's increased earnings
Associated Press Newswires, 04/17/01

Enron CEO: Earnings Target Up By A Nickel
CNNfn: Market Coverage - Morning, 04/17/01

Enron Corp. Says First-Quarter Profit Rose 20 Percent (Update6)
Bloomberg, 04/17/01

Dynegy's 1st-Qtr Profit Rises 73% on Gas, Power Sales (Update4)
Bloomberg, 04/17/01

Red Herring 100 Celebrates Top Companies Reshaping Business
PR Newswire, 04/17/01

Enron Says PG&E Owes About $570 Million, CNBC Says (Update1)
Bloomberg, 04/17/01

Public Service Says 1st-Qtr Profit Fell 5.9 Percent (Update2)
2001-04-17 17:25 (New York)

Public Service Says 1st-Qtr Profit Fell 5.9 Percent (Update2)

     (Updates with profit from operations in second paragraph and
possible expansion in California in second section. For more on
the California electricity crisis, see {EXTRA <GO>}.)

     Newark, New Jersey, April 17 (Bloomberg) -- Public Service
Enterprise Group Inc., owner of New Jersey's largest utility, said
first-quarter profit fell 5.9 percent because of a rate cut and
higher fuel costs.
     Profit from operations fell to $254 million, or $1.22 a
share, from net income of $270 million, or $1.25, a year earlier,
spokesman Paul Rosengren said. Revenue rose 13 percent to
$2.81 billion from $2.48 billion.
     The company has been trying to expand outside New Jersey as
the state opens its energy markets to competition. Talks to buy
Cinergy Corp., owner of Cincinnati's utility, for about $5.6
billion fell apart in March, possibly because it offered only a
slight premium, according to newspaper reports.
     The company's Public Service Electric & Gas utility has
3.5 million New Jersey customers. Utility profit fell 11 percent
because of a 2 percent power-rate cut and costs to refinance debt,
the Newark, New Jersey-based company said.
     Profit at PSEG Power, the company's U.S. trading and power-
generation unit, fell 19 percent because of higher fuel costs and
interest expenses. Public Service uses natural gas to fuel some of
its power plants. Gas prices more than doubled from a year ago.
     A $2 million charge for a debt payment and a $9 million gain
from an accounting change made net income $261 million, or $1.25 a
share, the company said. Public Service had 208 million shares
outstanding in the latest quarter. It had 216 million shares
outstanding a year earlier.
     Operating profit of PSEG Energy Holdings, which includes
international business, rose 88 percent. Public Service expects to
have 3.7 million customers outside the U.S. after some
acquisitions are complete, the company said.

                            California

     Public Service is talking with California officials about
expanding six power plants in the state, Rosengren said. The
plants, owned 50 percent by Public Service, generate enough power
for 150,000 U.S. homes and might be ``substantially enlarged''
with turbines Public Service has on order, provided the state
confirms payment for power, he said.
     He declined to provide details on the size of the expansion.
     Shares of Public Service rose 90 cents to $46.08. They have
fallen 5.2 percent this year.

Enron Bandwidth Unit Reports Loss For First Quarter

04/17/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON -(Dow Jones)- Enron Broadband Services was the only one of Enron
Corp.'s (ENE) business sectors to report a loss for the first quarter of
2001, company executives said in a conference call with analysts Tuesday.
Before interest and taxes, Enron reported a loss for Broadband Services of
$35 million for the first quarter of this year compared to a break-even
quarter a year ago.
"Only one sector is down from what we expected and that's broadband," Enron
President and Chief Executive Jeff Skilling told investors. "The other
sectors are up, significantly up."
Enron Corp. reported earnings of $405 million on revenues of $50.1 billion
for the first quarter of 2001. The per-diluted share earnings were 49 cents,
compared with 40 cents in the year-ago period.
Company executives also revised upward their per-share earnings goal for 2001
from $1.73 to the $1.75-$1.80 range.
The Broadband Services loss came on $83 million in revenues compared to $59
million last year. The total value of contracts for the first quarter 2001
was $45 million, compared with $31 million in the first quarter 2000.
Broadband Services delivered 43,400 terabytes of capacity in the first
quarter 2001, up from 6,005 terabytes a year ago. For all of last year, the
company delivered a total of 72,406 terabytes of bandwidth.
Skilling said the company has contracts to deliver 40% of its goal of 570,000
terabytes this year.
"We're making excellent progress in creating a commodities market," he said.
Broadband Services did a total of 580 transactions in the first quarter of
2001, double the 236 transactions it did in the fourth quarter of last year.
In all of 2000, the company did 321 trades.
In the first quarter, Enron added 70 new customers, bringing its total up to
120, Skilling said.
He added that 70% of those customers are carriers or network service
providers.
Skilling said he is disappointed with the slow growth of the long-term deal
origination segment of the bandwidth operation.
"We face one big issue in this market, the counterparties have no credit
capacity," he said.
The Broadband Services loss wasn't due to increased costs of seeking
video-on-demand partners to replace Blockbuster Inc. (BBI). Enron and
Blockbuster canceled an exclusive agreement to distribute movies via the
Internet in the first quarter.
Enron will seek to make deals with motion picture companies directly. The
biggest snag in making those deals are Hollywood's desires.
"They want to keep as much of the money as they can," said Ken Rice, chairman
and chief executive of Broadband Services.
-By Erwin Seba, Dow Jones Newswires, 713-547-9214 erwin.seba@dowjones.com

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

USA: Enron CEO uses naughty word on conference call.

04/17/2001
Reuters English News Service
(C) Reuters Limited 2001.

(Editors note language)
By C. Bryson Hull
HOUSTON, April 17 (Reuters) - Enron Corp.'s top executive Tuesday publicly
fired off the same vulgarity that brought President George W. Bush
embarrassing headlines when he unwittingly uttered it in front of an open
microphone last fall.
But unlike Bush, Enron President and Chief Executive Officer Jeff Skilling
says he knew the microphone was on when he called a fund manager an "asshole"
during a conference call to discuss first-quarter earnings with analysts.
Bush made headlines on the campaign trail last year when he remarked to Vice
President Dick Cheney that a New York Times reporter was a "major-league
asshole," not knowing that a microphone had picked up his remark.
Skilling laid down the insult after an exchange with Richard Grubman,
managing director of Highfields Capital Management in Boston, who asked to
see Enron's balance sheet and was told it would not be available until its
inclusion in a Securities and Exchange Commission filing later this month.
"You're the only financial institution that can't come up with balance sheet
or cash flow statement after earnings," Grubman grumbled.
"Well, thank you very much, we appreciate that. Asshole," Skilling responded
with a laugh.
Skilling, whose candor frequently gives his public relations staff fits, told
Reuters in a telephone interview that he knew the microphone was on.
"The specific fellow that I was not real happy with is a shortseller in the
market. I don't think it is fair to our shareholders to give someone a
platform like that they are using for some personal vested interest related
to their stock position," Skilling told Reuters in an interview.
"I get a little exasperated with that sort of thing, and I want people to
know I am exasperated," he said.
Grubman said he felt "pretty thin-skinned" about the remark.
He disputed Enron's assertion the balance sheets and cash flow statements
were not ready yet, particularly in light of Skilling's mention during the
call that Enron reconciles its credit risks and trading book daily.
"I'm sort of at a loss as to why that was such an objectionable question,"
Grubman said, adding:
"He's got some nerve. He and his management team sold 7 million shares into
the market last year, so he's plugged the market for a half a billion dollars
worth of stock valued in the $70s and $80s.
"Now the stock is the high $50s-low $60s and I'm an asshole because I ask
about the balance sheet?"

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

Enron, Dynegy post healthy profit gains on energy demand
By The Associated Press

04/17/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

Energy wholesalers Dynegy Inc. and Enron Corp. posted healthy profit gains
Tuesday, beating Wall Street's expectations, as demand for electricity and
natural gas surged during the first quarter.
Both companies saw revenues jump as well, with Enron's sales coming in nearly
four times that of the previous quarter.
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said
Enron's results were no surprise because of increased demand for power and
gas in power-strapped California and across the country.
"Clearly the California energy crisis has raised the bar on those power and
gas trading and marketing profits," she said. "Opportunities have existed
outside California as well."
Meanwhile, Dynegy, a major power generator in California, said it was being
"unfairly and inaccurately" accused of withholding power from the state's
power market. It said that sales there "did not make a material contribution"
to first-quarter results.
Enron Corp.
Houston-based Enron, the world's top buyer and seller of natural gas and
electricity, said Tuesday that it earned $425 million, or 49 cents per share,
in the three months ended March 31, compared with $338 million, or 40 cents
per share in the year-ago period.
This year's results include a $19 million, or 2 cents per share gain, due to
the adoption of new accounting standards; excluding the item, Enron earned
$406 million, or 47 cents per share.
The result beat comparable expectations of analysts surveyed by Thomson
Financial/First Call, who predicted earnings of 45 cents per share.
First-quarter revenues nearly quadrupled to $50.1 billion, compared to
revenues of $13.1 billion in the first three months of 2000.
Enron also increased its 2001 overall earnings prediction to $1.75 to $1.80
per share. Previously, the company said it expected 2001 earnings of $1.70
and $1.75 per share, and the consensus of analysts was for $1.74 per share.
"Enron's wholesale business continues to generate outstanding results.
Transaction and volume growth are translating into increased profitability,"
said Jeff Skilling, president and CEO of Enron.
The company attributed the increase to continued growth in its wholesale
energy-trading business, acceleration in its retail energy services and in
its broadband Internet business.
In its wholesale business, Enron resells power and gas to utilities and other
large customers. That business accounted for 96 percent of its first-quarter
revenues.
Shares of Enron rose $1.04 to $60.48 in trading Tuesday on the New York Stock
Exchange.
Dynegy Inc.
The Houston-based energy marketer said Tuesday it earned $139.5 million, or
41 cents a share, in the first three months of 2001, more than double that
from first-quarter 2000 earnings of $69 million, or 26 cents per share.
Analysts surveyed by Thomson Financial/First Call expected Dynegy's
first-quarter earnings to be 40 cents a share. The results include a $2
million gain for an accounting change, which did not affect the per-share
figure.
Revenues for the first three months of the year were $14.2 billion, nearly
triple the $5.3 billion reported in the same period a year ago.
Dynegy chairman and chief executive officer Chuck Watson attributed the
increase to cold weather demands in northern states, not the California power
shortage.
In a statement following the release of the earnings, president and chief
operating officer Steve Bergstrom defended the company, saying it had been
"unfairly and inaccurately accused of withholding power from the California
market."
"As we have repeatedly communicated to California policy-makers and
regulators and to industry officials, we remain ready and willing to generate
and sell power to any and all buyers, at fair and reasonable prices, when
they are able to provide appropriate assurances that they will fulfill their
obligation to pay for those purchases, Bergstrom said.
Dynegy said it has softened nearly all of its prospective credit exposure in
the California market through an agreement with the California Department of
Water Resources to provide the state with up to 2,300 megawatts of
electricity through 2004.
Shares of Dynegy rose $2.17 to $55.32 in trading on the NYSE.
---
On the Net: http://www.enron.com
http://www.dynegy.com

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

USA: Enron Broadband posts expected loss amid mixed growth.
By C. Bryson Hull

04/17/2001
Reuters English News Service
(C) Reuters Limited 2001.

HOUSTON, April 17 (Reuters) - Enron Corp.'s nascent broadband Internet
division posted an expected quarterly loss on Tuesday amid a weak
telecommunications market and mixed growth in the Houston energy giant's
flashiest unit.
Enron Broadband Services reported a loss of $35 million on $83 million in
revenue, compared with a break-even first quarter in 2000, when it had $59
million in revenues.
Enron has consistently said it did not expect its broadband arm to record a
profit until 2002 and instead has offered other measures of growth by which
to benchmark the unit's progress.
The broadband unit encompasses two distinct segments: the bandwidth
intermediation business, which turns Internet bandwidth into a tradeable
commodity; and the content services division, which engages in sales and
transmission of Internet content.
The bandwidth trading unit recorded 580 transactions in the first quarter of
2001, compared with 321 in all of last year. It delivered 43,400 terabytes -
a unit equal to one trillion bytes - in the first quarter, compared with
6,000 in the similar year-ago period, a more than sixfold increase.
But Enron President and Chief Executive Jeff Skilling said he was
disappointed with the rate at which Enron is signing large, structured
bandwidth contracts, which he said are a casualty of the low credit capacity
of potential counterparties.
"If you look at most of the large telecom companies right now, you would be
hard-pressed to assume they could perform on a contract that is anything more
than six months to a year long," Skilling said.
Enron's bread-and butter, developed in the natural gas business, is creating
long-term commodity deals that are geared to combat price volatility for its
customers.
Skilling said Enron is looking at ways to use the inherent credit of
telecommunication companies' assets to finance the deals, much as Enron did
with credit-poor natural gas companies in the mid-1980s.
"This is going to come a little slower than what we expected," he
acknowledged.
The content services unit had suffered some setbacks during the first
quarter, including the premature dissolution of its marquee 20-year video on
demand deal with Blockbuster Inc.
EBS also trimmed 20 percent of its staff last month, moving them out of the
unit and into other parts of the parent company.
"The losses in bandwidth have nothing to do with Blockbuster," Skilling told
investors.
Rather, the changes came as a result of Enron slashing $500 million off the
$750 million it had set aside to build its network. The weak telecom market
means a long bandwidth supply and an easy way for Enron to secure contractual
access to bandwidth at low prices, Skilling has said.

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

WSJ.COM WRAP: Enron, Dynegy Post Immpressive Results

04/17/2001
Dow Jones News Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

A WSJ.COM News Roundup
HOUSTON -(Dow Jones)- Electricity suppliers Enron Corp. (ENE) and Dynegy Inc.
(DYN) posted strong first-quarter results as their wholesaling and trading
businesses thrived in a market roiled by California's energy crisis.
Enron on Tuesday reported net income that rose 26% to $425 million, or 49
cents a diluted share, compared with net income of $338 million, or 40 cents
a share, a year earlier.
Results in the latest quarter include a gain related to the required adoption
of new accounting standards. Excluding the gain, the company earned $406
million, or 47 cents a share, two cents better than the estimate from
analysts surveyed by Thomson Financial/First Call.
Revenue in the quarter surged to $50.13 billion from $13.15 billion a year
earlier.
The energy giant also boosted its earnings outlook for 2001 to $1.75 to $1.80
a share. As recently as March 23, the company said it expected to earn $1.70
to $1.75 a share. The current consensus estimate of analysts is $1.75 a share
for 2001.
"Enron's wholesale business continues to generate outstanding results.
Transaction and volume growth are translating into increased profitability,"
Jeff Skilling, Enron's president and chief executive, said in a prepared
statement. "In addition, our retail energy services and broadband
intermediation activities are rapidly accelerating."
The company's wholesale-services operations reported a 76% increase in income
before interest, minority interests and taxes, or IBIT, to $755 million, led
by growth in its natural-gas and power businesses. In addition, Enron's new
wholesale commodity businesses, including coal, steel and forest products,
contributed to the quarter's strong results.
Enron's assets and investments unit posted a 73% drop in IBIT to $59 million
because of lower earnings from merchant investments and related assets.
Enron said IBIT at its retail energy services group surged to $40 million
from $6 million a year earlier, amid a 60% increase in contracting in the
period. The company said its new long-term energy-management customers
include Owens-Illinois Inc., Quaker Oats Co., Eli Lilly & Co., J.C. Penney
Co. and Saks Inc.
The transportation-services unit reported IBIT that inched up 3.9% to $133
million, amid strong demand for natural-gas pipeline services. Its Portland
General Electric investor-owned utility posted a 43% drop in IBIT to $60
million, which reflects higher power costs, reduced investment income and the
effect of certain regulatory events.
Enron's broadband-services operations reported a $35 million loss before
interest, minority interests and taxes for the quarter. The company said it
added 70 new broadband customers this quarter for a total of 120 customers.
Unlike beleaguered utilities such as PG&E Corp.'s Pacific Gas & Electric Co.
and Edison International's Southern California Edison Co., Enron's Portland
General has benefited from the power crisis in California, where a botched
utility-deregulation plan combined with general power shortages have driven
average wholesale prices 10 times as high as a year ago.
Before the energy crisis, Portland General locked in low prices and more
power than it needed through long-term contracts. Then, by the third quarter
of 2000, Portland General nearly tripled its revenue from selling excess
power on the wholesale market. The higher revenue led to higher profits,
which allowed the company to rescind a 17% rate increase that was to go into
effect in January.
Meanwhile, the inability to keep up with soaring electricity prices forced
Pacific Gas to seek Chapter 11 bankruptcy protection earlier this month.
Pacific Gas and Southern California Edison weren't allowed to fully pass on
the high power costs to customers because, under deregulation, they agreed to
assume the risk of fluctuating power prices. For the first two years of this
arrangement, wholesale prices were so low that the utilities collected
billions of dollars extra that they used to pay down old debts.
But with skyrocketing wholesale costs, Pacific Gas and Edison accrued
billions of dollars of power-purchase liabilities. By early this year, both
had stopped paying many of their obligations to conserve cash.
Dynegy's Net Income, Revenue More Than Double
Dynegy, a big supplier of electrical energy to the California market, saw its
first-quarter net income more than double amid a surge in revenue.
The Houston-based company posted net income of $139.5 million, or 41 cents a
diluted share, compared with net income of $69 million, or 23 cents a share,
a year earlier.
Excluding a $2 million gain from an accounting change, Dynegy earned $137.5
million, or 41 cents a share, a penny better than the mean estimate from
analysts surveyed by Thomson Financial/First Call.
Revenue in the quarter more than doubled to $14.17 billion from $5.35
billion.
Dynegy's earnings a year earlier include a gain of $33.8 million from the
sale of certain power-generation facilities, and a charge of $44.2 million
for merger-related costs and the sale and impairment of certain liquids
assets. Excluding the items, the company earned $79.4 million, or 26 cents a
share, for the 2000 first quarter.
The company's outstanding shares rose 16% to 337.7 million as of March 31
from 291.9 million shares a year earlier.
Dynegy attributed first-quarter growth to "nationwide asset optimization,
increased customer origination and risk-management activities." The company
said it benefited from strong industry fundamentals in both natural gas and
power. It capitalized on a return to seasonal winter weather and the supply
and demand imbalances affecting multiple energy commodities.
Earlier this month, Dynegy raised its first-quarter earnings outlook to 40
cents a share. At the time, analysts had expected the power supplier to earn
31 cents a share.
Dynegy's marketing and trading unit, which also runs power generators, turned
in another strong performance, accounting for 73% of the company's net income
for the quarter. The segment earned $100.3 million for the first quarter,
nearly double the $50.3 million it posted a year earlier.
The company said its marketing and trading operation benefited from seasonal
winter weather across the U.S. and strong supply and demand fundamentals,
which allowed for higher prices. Increased origination activity from Dynegy's
European operations also contributed to the segment's positive results.
Dynegy said generation operations at West Coast Power, its joint venture with
NRG Energy Inc., Minneapolis, didn't make a "material contribution" during
the quarter. But the venture reduced its prospective credit exposure in the
California market through its agreement with the California Department of
Water Resources to provide the state with up to 2,300 megawatts of energy
through 2004.
In February, Dynegy joined Reliant Energy Inc. and Mirant Corp. to form a
creditors committee to explore options for getting paid for electricity sold
to the California Independent System Operator and California's investor-owned
utilities, amid frustration with the slow progress in California's attempts
to solve the energy crisis.

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

Action on energy trading floors reverberate in power-hungry California
By MICHAEL LIEDTKE
AP Business Writer

04/17/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

In Houston, it's known as "the power corner." Separated by just a few city
blocks, four major power wholesalers run trading exchanges that have a strong
influence on energy prices nationwide.
The trading floors run by Enron Corp., Reliant Energy Inc., Dynegy Inc. and
Duke Energy Corp. represent ground zero in a power crisis threatening the
quality of life in much of the western United States this summer.
By seizing upon opportunities created by deregulation, the energy traders
have turned up the juice in the electricity business in ways similar to how
junk bond traders ignited Wall Street in the 1980s and venture capitalists
fueled Silicon Valley last decade.
And thanks to an exemption granted in the early 1990s, nobody monitors daily
trading to detect unfair or illegal practices.
Utility bills in California have gone up nearly fourfold in the past year, to
$27.1 billion. Without fundamental changes in the energy market, this year's
bill will rise to $70 billion - more than $2,000 for every person in the
state, according to operators of the state's power grid.
The staggering electricity price increases have pushed the state's largest
utility, Pacific Gas and Electric, into bankruptcy and left No. 2 Southern
California Edison on the brink of insolvency. California's once-ample budget
surplus also has shriveled, as the state is spending about $50 million a day
to buy enough power to keep the lights on.
The energy wholesalers say they're doing nothing wrong.
They blame the high prices on the rising price of natural gas, burned to
generate electricity, and the state's botched deregulation plan. By failing
to line up reliable power ahead of time and by imposing price caps for
consumers, the state put itself into this mess, the companies say.
"There have been accusations of wrongdoing for eight months now and there
isn't a shred of evidence to support the allegations," said Gary Ackerman,
executive director of the Western Power Trading Forum, a Menlo Park, Calif.,
trade group. "People are very angry and frustrated about electricity right
now and attorneys are trying to take that anger out on us."
Attorneys general in Washington, Oregon and California are probing whether
the wholesalers have violated antitrust laws or engaged in unfair business
practices. A California state senate committee may issue subpoenas for
records and the testimony of top energy executives, and at least five
lawsuits accuse energy companies of market abuses.
"This is the best fraud I have ever seen," attorney Michael Aguirre of San
Diego, who is involved in one of the class-action suits. "The generators are
doing everything that you think that they might be doing, only it's worse
than you ever imagined."
The lawsuits and investigations allege that generators have conspired to
hijack billions of dollars from consumers and taxpayers by withholding
electricity from energy-starved California until the last minute, and then
supplying it at exorbitant prices.
At Enron's headquarters in Houston, energy specialists among the company's
1,500 traders swap electricity and natural gas contracts like stocks and
bonds. Mathematicians, meteorologists and economists make complex
calculations to identify where to buy the cheapest power and where to deliver
it at the greatest profit.
"They are extremely good at what they do," said Severin Borenstein, director
of the University of California at Berkeley's energy institute.
The Internet has provided the traders with the tools to do their jobs even
better. Online marketplaces and password-protected exchanges provide them
with invaluable real-time information on the buying and selling patterns of
their rivals.
Two lawsuits allege that traders have parlayed the sensitive information
collected online to fix prices artificially high, a violation of antitrust
laws.
Aguirre has spent six months assembling reams of data about traders and their
activities, but he has yet to develop concrete evidence to prove his
price-fixing allegations.
A March 21 report by California's electricity grid managers concluded that,
between last May and November, 98 percent of trading bids were driven up by
noncompetitive patterns of behavior.
The California Independent System Operator report stopped short of accusing
wholesalers of illegal market manipulation, but it did determine that the
wholesalers collected as much as $6.9 billion in "unjust and unreasonable"
rates.
Enron says its trading system, particularly the online exchange, has resulted
in fairer and more efficient markets. The allegations of market abuse are
"just some sour grapes from people who didn't come up with the idea in the
first place," said Enron spokesman Eric Thode.
The online exchanges and other industry Web sites provide the energy traders
with a window to see the energy availability and bids in markets around the
country.
Power industry critics, however, contend the Web's instant access provides
the traders a way to exploit a delicate supply-demand balance. If the scale
is tipped even slightly toward an inadequate supply, they say, prices soar
and energy traders reap huge gains.
"The whole trading thing is just a front that lets them game the market,"
Aguirre said. "They can get away with it because no one (outside the
industry) can figure out what they are doing."
Whatever the energy traders are doing, it's not closely monitored by
government regulators.
In 1993, the trading of energy products received an exemption from oversight
by the Commodity Futures Trading Commission, a federal agency that oversees
commodity and options trading to protect markets from fraud and manipulation.
Energy is the only commodity that has received a blanket CFTC exemption.
The exemption was shepherded beginning in 1992 by then-CFTC chairwoman Wendy
Gramm, wife of Texas Sen. Phil Gramm. She left the CFTC three months before
the exemption received final approval in 1993. That same year, she joined the
Enron board of directors, a post that last year earned her $50,000.
Gramm, an economist at the Mercatus Center at George Mason University, said
she doesn't recall talking with Enron about the exemption, which she
characterized as a routine matter triggered by an antitrust case involving
crude oil.
"It really didn't have anything to do with Enron or any specific company,"
said Gramm. "It had to do with a general market problem."
In granting the exemption, the CFTC accepted the industry's contention that
it shouldn't be subjected to the government's usual commodities regulation
because its markets are dominated by "large sophisticated commercial
entities" capable of protecting themselves - in short, that there would be no
little people to hurt.
At the time, then-CFTC commissioner Sheila Bair scoffed at the reasoning,
comparing energy traders to boiler room sales operations that had the
potential to violate federal anti-fraud laws.
"Is it really that much of burden on market participants (for the CFTC) to
retain a sliver of authority regarding fraudulent activity?" Bair wrote in a
dissenting opinion.
Wholesale electricity prices negotiated by the traders are eventually
compiled in quarterly reports and reviewed by the Federal Energy Regulatory
Commission. And while FERC by law is supposed to prevent unfair prices, a
majority of its commissioners have advocated a hands-off approach to
California's energy crisis, insisting that the market can correct itself.
That posture may finally be changing somewhat. On Wednesday in San Jose,
Calif., FERC chairman Curt Hebert told lawmakers that his agency hopes to
begin "monitoring and mitigating" the wholesale electricity market by May 1.
This could allow FERC to preemptively influence prices.
Energy economists who have studied the market see signs of ruthless, but
perfectly legal, behavior.
Paul Joskow, an MIT economist, concluded in January that electricity
producers deliberately withheld power to drive up prices.
"Every business exercises market power when it can, so I don't know why
people are so surprised that (the generators) used their market power,"
Joskow said. "I didn't see any evidence of collusion in what they did ... It
was just good business."
Enron's specific trading methods remain a mystery even to industry analysts,
partly because the company considers its techniques to be proprietary. But it
yielded a big payoff last year - an operating profit of $1.6 billion, up 160
percent from $628 million in 1999.
When electricity and natural gas prices soared to record highs in the fourth
quarter, Enron's trading profit more than tripled to $538 million.
Without providing specifics, Enron officials said the profits poured in from
all over the country.
"Our success is linked to efficient markets, not higher prices in California,
or anywhere else for that matter," Steve Kean, an Enron executive vice
president, said in January testimony before the U.S. Senate. "What we are
interested in is competitive and well-functioning markets. Our financial
success is not built on California's back."

AP Photo FX101 of April 16, AP Graphic POWER PLAYERS

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

Energy Trading-Floor Gambits Perturb Power-Hungry US West

04/17/2001
Dow Jones Energy Service
(Copyright (c) 2001, Dow Jones & Company, Inc.)

HOUSTON (AP)--In Houston, it's known as "the power corner." Separated by just
a few city blocks, four major power wholesalers run trading exchanges that
have a strong influence on energy prices nationwide.
The trading floors run by Enron Corp. (ENE), Reliant Energy Inc. (REI),
Dynegy Inc. (DYN) and Duke Energy Corp. (DUK) represent ground zero in a
power crisis threatening the quality of life in much of the western U.S. this
summer.
By seizing upon opportunities created by deregulation, the energy traders
have turned up the juice in the electricity business in ways similar to how
junk bond traders ignited Wall Street in the 1980s and venture capitalists
fueled Silicon Valley last decade.
And thanks to an exemption granted in the early 1990s, nobody monitors daily
trading to detect unfair or illegal practices.
Utility bills in California have gone up nearly fourfold in the past year, to
$27.1 billion. Without fundamental changes in the energy market, this year's
bill will rise to $70 billion - more than $2,000 for every person in the
state, according to operators of the state's power grid.
The staggering electricity price increases have pushed the state's largest
utility, Pacific Gas and Electric (PCG), into bankruptcy and left No. 2
Southern California Edison (EIX) on the brink of insolvency. California's
once-ample budget surplus also has shriveled, as the state is spending about
$50 million a day to buy enough power to keep the lights on.
The energy wholesalers say they're doing nothing wrong.
They blame the high prices on the rising price of natural gas, burned to
generate electricity, and the state's botched deregulation plan. By failing
to line up reliable power ahead of time and by imposing price caps for
consumers, the state put itself into this mess, the companies say.
"There have been accusations of wrongdoing for eight months now and there
isn't a shred of evidence to support the allegations," said Gary Ackerman,
executive director of the Western Power Trading Forum, a Menlo Park, Calif.,
trade group. "People are very angry and frustrated about electricity right
now and attorneys are trying to take that anger out on us."
Attorneys general in Washington, Oregon and California are probing whether
the wholesalers have violated antitrust laws or engaged in unfair business
practices. A California state senate committee may issue subpoenas for
records and the testimony of top energy executives, and at least five
lawsuits accuse energy companies of market abuses.
"This is the best fraud I have ever seen," attorney Michael Aguirre of San
Diego, who is involved in one of the class-action suits. "The generators are
doing everything that you think that they might be doing, only it's worse
than you ever imagined."
The lawsuits and investigations allege that generators have conspired to
hijack billions of dollars from consumers and taxpayers by withholding
electricity from energy-starved California until the last minute, and then
supplying it at exorbitant prices.
At Enron's headquarters in Houston, energy specialists among the company's
1,500 traders swap electricity and natural gas contracts like stocks and
bonds. Mathematicians, meteorologists and economists make complex
calculations to identify where to buy the cheapest power and where to deliver
it at the greatest profit.
"They are extremely good at what they do," said Severin Borenstein, director
of the University of California at Berkeley's energy institute.
The Internet has provided the traders with the tools to do their jobs even
better. Online marketplaces and password-protected exchanges provide them
with invaluable real-time information on the buying and selling patterns of
their rivals.
Two lawsuits allege that traders have parlayed the sensitive information
collected online to fix prices artificially high, a violation of antitrust
laws.
Aguirre has spent six months assembling reams of data about traders and their
activities, but he has yet to develop concrete evidence to prove his
price-fixing allegations.
A March 21 report by California's electricity grid managers concluded that,
between last May and November, 98% of trading bids were driven up by
noncompetitive patterns of behavior.
The California Independent System Operator report stopped short of accusing
wholesalers of illegal market manipulation, but it did determine that the
wholesalers collected as much as $6.9 billion in "unjust and unreasonable"
rates.
Enron says its trading system, particularly the online exchange, has resulted
in fairer and more efficient markets. The allegations of market abuse are
"just some sour grapes from people who didn't come up with the idea in the
first place," said Enron spokesman Eric Thode.
The online exchanges and other industry Web sites provide the energy traders
with a window to see the energy availability and bids in markets around the
country.

Power industry critics, however, contend the Web's instant access provides
the traders a way to exploit a delicate supply-demand balance. If the scale
is tipped even slightly toward an inadequate supply, they say, prices soar
and energy traders reap huge gains.
"The whole trading thing is just a front that lets them game the market,"
Aguirre said. "They can get away with it because no one (outside the
industry) can figure out what they are doing."
Whatever the energy traders are doing, it's not closely monitored by
government regulators.
In 1993, the trading of energy products received an exemption from oversight
by the Commodity Futures Trading Commission, a federal agency that oversees
commodity and options trading to protect markets from fraud and manipulation.
Energy is the only commodity that has received a blanket CFTC exemption.
The exemption was shepherded beginning in 1992 by then-CFTC chairwoman Wendy
Gramm, wife of Texas Sen. Phil Gramm. She left the CFTC three months before
the exemption received final approval in 1993. That same year, she joined the
Enron board of directors, a post that last year earned her $50,000.
Gramm, an economist at the Mercatus Center at George Mason University, said
she doesn't recall talking with Enron about the exemption, which she
characterized as a routine matter triggered by an antitrust case involving
crude oil.
"It really didn't have anything to do with Enron or any specific company,"
said Gramm. "It had to do with a general market problem."
In granting the exemption, the CFTC accepted the industry's contention that
it shouldn't be subjected to the government's usual commodities regulation
because its markets are dominated by "large sophisticated commercial
entities" capable of protecting themselves - in short, that there would be no
little people to hurt.
At the time, then-CFTC commissioner Sheila Bair scoffed at the reasoning,
comparing energy traders to boiler room sales operations that had the
potential to violate federal anti-fraud laws.
"Is it really that much of burden on market participants (for the CFTC) to
retain a sliver of authority regarding fraudulent activity?" Bair wrote in a
dissenting opinion.
Wholesale electricity prices negotiated by the traders are eventually
compiled in quarterly reports and reviewed by the Federal Energy Regulatory
Commission. And while FERC by law is supposed to prevent unfair prices, a
majority of its commissioners have advocated a hands-off approach to
California's energy crisis, insisting that the market can correct itself.
That posture may finally be changing somewhat. On Wednesday in San Jose,
Calif., FERC chairman Curt Hebert told lawmakers that his agency hopes to
begin "monitoring and mitigating" the wholesale electricity market by May 1.
This could allow FERC to preemptively influence prices.
Energy economists who have studied the market see signs of ruthless, but
perfectly legal, behavior.
Paul Joskow, an MIT economist, concluded in January that electricity
producers deliberately withheld power to drive up prices.
"Every business exercises market power when it can, so I don't know why
people are so surprised that (the generators) used their market power,"
Joskow said. "I didn't see any evidence of collusion in what they did... It
was just good business."
Enron's specific trading methods remain a mystery even to industry analysts,
partly because the company considers its techniques to be proprietary. But it
yielded a big payoff last year - an operating profit of $1.6 billion, up 160
percent from $628 million in 1999.
When electricity and natural gas prices soared to record highs in the fourth
quarter, Enron's trading profit more than tripled to $538 million.
Without providing specifics, Enron officials said the profits poured in from
all over the country.
"Our success is linked to efficient markets, not higher prices in California,
or anywhere else for that matter," Steve Kean, an Enron executive vice
president, said in January testimony before the U.S. Senate. "What we are
interested in is competitive and well-functioning markets. Our financial
success is not built on California's back."

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

High demand for power behind Enron's increased earnings
By KRISTEN HAYS
Associated Press Writer

04/17/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

HOUSTON (AP) - High demand for electricity and natural gas helped Enron
Corp.'s first-quarter net income surge more than 25 percent. The company also
announced increased earnings expectations for 2001.
Houston-based Enron, the world's top buyer and seller of natural gas and
electricity, said Tuesday that it earned $425 million, or 49 cents per share,
in the three months ended March 31, compared with $338 million, or 40 cents
per share in the year-ago period.
This year's results include a $19 million, or 2 cents per share gain, due to
the adoption of new accounting standards; excluding the item, Enron earned
$406 million, or 47 cents per share.
The result beat comparable expectations of analysts surveyed by Thomson
Financial/First Call, who predicted earnings of 45 cents per share.
First-quarter revenues nearly quadrupled to $50.1 billion, compared to
revenues of $13.1 billion in the first three months of 2000.
Enron also increased its 2001 overall earnings prediction to $1.75 to $1.80
per share. Previously, the company said it expected 2001 earnings of $1.70 to
$1.75 per share, and the consensus of analysts was for $1.74 per share.
"Enron's wholesale business continues to generate outstanding results.
Transaction and volume growth are translating into increased profitability,"
said Jeff Skilling, president and CEO of Enron.
Carol Coale, an analyst with Prudential Securities Inc. in Houston, said
Enron's earnings reports were no surprise because of increased demand for
power and gas in power-strapped California and across the country.
"Clearly the California energy crisis has raised the bar on those power and
gas trading and marketing profits," she said. "Opportunities have existed
outside California as well."
Coale said volatile electricity prices have helped trading profits, and
demand remains strong despite an economic slowdown.
The company attributed the increase to continued growth in its wholesale
energy-trading business, acceleration in its retail energy services and in
its broadband Internet business.
In its wholesale business, Enron resells power and gas to utilities and other
large customers. That business accounted for 96 percent of its first-quarter
revenues.
Shares of Enron rose $1.29 to $60.73 in trading Tuesday on the New York Stock
Exchange.
---
On the Net: http://www.enron.com

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

Business
Enron CEO: Earnings Target Up By A Nickel
Rhonda Schaffler, Gregg Hymowitz

04/17/2001
CNNfn: Market Coverage - Morning
(c) Copyright Federal Document Clearing House. All Rights Reserved.

RHONDA SCHAFFLER, CNNfn ANCHOR, MARKET CALL: Markets are down. We`re going to
talk about one stock moving higher, though. North America`s largest gas and
electricity maker is bucking the current earnings trend. Enron (URL:
http://.www.enron.com/) is raising its earnings forecast for this year by a
nickel. The company also earned 47cents a share for its first quarter, 2
pennies better than estimates and 7 cents better than the year ago. Revenues
rose a healthy 282 percent. Jobs cuts and the end of its video on demand deal
with Blockbuster (URL: http://www.blockbuster.com/) put pressure on the
stock, which has fallen from $90, to significantly lower level right now,
about $60 a share.
Joining us from Houston with an inside look at Enron is the company`s CEO,
Jeff Skilling.
Jeff, welcome back to "Market Call."
JEFFREY SKILLING, CEO, ENRON CORP.: Thank you, Rhonda. Glad to be here.
SCHAFFLER: Let`s talk about the revenue growth because it is rather
impressive. You`re an old economy company with a new twist. Where was most of
the revenue growth from?
SKILLING: Well, surprisingly, it came from our natural gas and electricity
business.
SCHAFFLER: No, well that`s not surprising. It`s a key part of your business.
As opposed to your broadband, do you mean?
SKILLILNG: Well, just about 90 percent of our earnings-
I`m going to pull this out of my ear because I`m getting some feedback on the
earphone. Actually that`s working better now.
About 90 percent, or 95 percent, of our revenues are in the natural gas and
electricity business, so as long as that business is healthy, our business
overall is healthy.
GREGG HYMOWITZ, CNNfn GUEST HOST, MARKET CALL: Jeff, it`s Gregg Hymowitz. Can
you discuss, as related to that business, the pricing of megawatt hours going
forward, what we`ve seen it at. And also can you just touch upon fiber-optic
bandwidth pricing lately?
SKILLING: Sure-a tale of two cities. The electricity business is seeing very
strong prices. In California, for example, probably a year and a half ago
power sold for about $20 to $22 a megawatt hour. Right now in California,
we`re probably closer to $550 a megawatt hour for the summer. And this is
just because we have a short supply situation. There`s a lot of demand growth
in California. We just haven`t built the power plants to serve it.
Now, conversely in the fiber business, we`ve seen enormous capital
investments over the last several years. Supply much exceeds demand and in
that market prices have collapsed. In fact by our numbers, as you know, we`re
in the process of creating a market for bandwidth, those prices are dropping
in some cases by 30 percent a month.
SCHAFFLER: Let`s talk about California for a moment. Pacific Gas & Electric
(URL: http://www.pgecorp.com/) owes you some money. You`ve taken reserves
against that. I`m wondering if you feel a need to increase reserves going
forward or you`re comfortable with the situation as it is?
SKILLING: We`re very comfortable. What we had said to investors, as long ago
as December, was that we felt very comfortable with the $1.70 to $1.75 number
for this year. As you mentioned, we`re raising that from $1.75 to $1.80. And
we feel very comfortable with that number really regardless of what happens
with the credit situation in California.
HYMOWITZ: Jeff, getting back to that tale of two markets, discuss what could
potentially happen to change the trend in both markets?
SKILLING: Well, I think in the electricity market, we`ll have tight prices
for another couple of years. It takes that long to get the construction cycle
going. But once that construction cycle gets going it`s pretty easy to bring
on capacity and prices will drop significantly. And probably the $30 to $40
megawatt hour area in the next couple of years and I think that`s very
possible. In fact, I think that`s probable.
In the bandwidth market, very, very different situation. The problem, to
date, is that we built what amounts to an interstate highway system for
bandwidth, or for data, with no on ramps and no off ramps. We need to get
this last-mile problem fixed, so that people can get data from these networks
all the way out to end-use customers. Once that happens, we`ll see a lot of
applications developed that use bandwidth. It will soak up some of that
excess supply and we might see prices coming back. I think that`s a much
longer term proposition.
SKILLING: Jeff, we`ve heard so much about this last-mile for so many years
now. I mean when is it going to actually happen?
SKILLING: Well, it`s just been slower. You were just mentioning the earnings
of Sprint FON (URL: http://www.sprint.com/) . Many telecom companies are
working to put DSL cable systems on, that helped bridge the last-mile
problem, but it`s come much slower than people expected. These are enormously
capital intensive investments. They take a long time to put in. There are
still technical issues with some of these solutions. So, I just think we have
a little ways to go. It will take some more time.
SCHAFFLER: You had incredible revenue growth, which we mentioned, up 282
percent. Do you do anything different in this quarter? It`s always hard to
top the last great act on Wall Street.
SKILLING: The revenue numbers are not as important as our volume growth
numbers. What really drives our profitability is growth in volume, physical
volumes. They were up about 69 percent. Actual revenue numbers will be
influenced by price changes. Price changes really don`t make that much of a
difference for us. We don`t have any exposure to the commodity price cycle.
So, what we look at is physical volumes transported through the system. And
we`ve had just a tremendous track record for the last couple of years on
volume. As I mentioned, this quarter up 69 percent in physical volumes. We
think that`s a function of our market share position. And what amounts to a
unique, logistics capability in North America and Europe. No one else can
match it.
SCHAFFLER: Jeffrey Skilling, we`ll leave it at that. Congratulations on the
quarter.
SKILLING: Thank you, Rhonda.

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

Enron Corp. Says First-Quarter Profit Rose 20 Percent (Update6)
2001-04-17 16:04 (New York)

Enron Corp. Says First-Quarter Profit Rose 20 Percent (Update6)

      (Adds closing share price in eighth paragraph.)

     Houston, April 17 (Bloomberg) -- Enron Corp., the largest
energy-trading company, said first-quarter profit rose 20 percent
as increased electricity and natural-gas demand sent prices
surging in California and other parts of the U.S.
     Profit from operations rose to $406 million, or 47 cents a
share, from $338 million, or 40 cents, in the year-earlier period,
Enron Chief Executive Jeffrey Skilling said. Revenue almost
quadrupled to $50.1 billion from $13.1 billion.
     ``The market is perfect for a trader and marketer,''
Commerzbank Capital Markets Co. analyst Andre Meade said. ``Volume
is growing, prices are high and prices are volatile.''
     Enron sold 90 percent more power and 32 percent more gas in
North America than in the year-earlier quarter as prices surged.
About one-fifth of the power-sales increase came from the western
U.S. as California electricity prices averaged nine times higher
than a year earlier. The rest came from the eastern U.S., which
also has had power shortages.
     The Houston-based company also raised its 2001 profit
forecast to $1.75 to $1.80 a share, from its January projection of
$1.70 to $1.75.
     Once just a natural-gas pipeline company, Enron has spent
more than a decade creating a trading operation that buys power,
gas and other commodities and resells them to utilities and other
large consumers, a business made possibly by deregulation of U.S.
energy markets in the 1980s and 1990s.
     As a result, the company's sales have risen an average of 66
percent annually for the past five years. Enron had 2000 revenue
of $101 billion, making it the second-largest U.S. energy company
behind Exxon Mobil Corp. Revenue will total as much as
$170 billion this year, Skilling estimated in March.
     Enron shares rose 56 cents to $60. They had fallen 28 percent
this year on concerns about the company's telecommunications
business and an India power project.

                        California Business

     Electricity prices in California were higher in the first
quarter than a year earlier as a power shortage continued and
generators demanded higher payments to offset the risk of selling
to the state's utilities. Prices for gas, used to fuel power
plants, were more than double the year-earlier average.
     The higher prices have left California utilities more than
$14 billion in debt because regulators won't let them pass on all
the cost of power purchases on to consumers.
     Enron is owed $570 million by PG&E Corp.'s Pacific Gas &
Electric, Skilling said in an interview. Pacific Gas & Electric,
California's biggest utility, filed for Chapter 11 bankruptcy
protection April 6.
     Enron has set aside money to cover potential California
losses and doesn't expect the energy crisis to affect 2001
earnings, Skilling said. He wouldn't say how much was set aside.
Investors are entitled to know how much Enron has put in reserves,
analysts told Skilling on a conference call today. Skilling
disagreed.
     ``I think that would hurt our competitive position,
particularly when people are jostling for position in
bankruptcy,'' Skilling said.
     Enron's business in energy-services contracts has escalated
as a result of California's power crisis. Skilling has said demand
is increasing as companies look to cut energy costs and protect
themselves from the risks of energy-price movements.
     ``If you or I were running a factory around New York right
now, we'd be calling Enron or a company like them to lock in
energy prices,'' Credit Suisse First Boston analyst Curtis Launer
said. ``That business is going gangbusters.''
     Contracts increased nearly 60 percent to $5.9 billion in the
quarter. Enron, which recently signed contracts with Owens-
Illinois Inc., Quaker Oats Co. and Eli Lilly & Co., manages energy
buying and consumption at more than 31,000 facilities. It is the
largest manager of customer energy assets, Skilling said.

                         Energy Deregulation

     The company's Wholesale Energy Operations and Services
business, which includes trading and power-plant development, saw
first-quarter profit before interest, minority interests and taxes
rise 76 percent to $755 million from $429 million.
     In the first quarter, gas volumes more than tripled outside
North America and rose 55 percent worldwide. On the power side,
worldwide volumes more than doubled, while sales outside North
America more than quadrupled.
     Enron has gained customers through EnronOnline, its Internet
trading site. EnronOnline handled $162 billion in transactions in
the quarter, Skilling said. It has handled more than $525 billion
since it opened in late 1999.
     Enron's broadband unit, set up to build a U.S. fiber-optic
network and help trade space on such networks, had a quarterly
loss of $35 million on revenue of $83 million. It broke even a
year earlier. Enron added 70 broadband customers in the latest
quarter, for a total of 120.

                      Broadband Woes

     Shares of Enron fell 11 percent on March 12 after the
collapse of an agreement for Blockbuster Inc., the largest video-
store chain, to deliver movies on demand over Enron's fiber-optic
system. The stock continued to fall on speculation Enron would
exit the broadband business, analysts said. Enron denied the
speculation.
     Enron has been trying to get paid for power sold by its India
unit to the western Indian state of Maharashtra. Enron's
$3 billion, 740-megawatt project is the biggest foreign investment
in India.
     A first-quarter gain of $19 million, or 2 cents a share, for
an accounting change, made net income $425 million, or 49 cents a
share. There were no charges or gains in the year-earlier period.
     The company was expected to make 45 cents a share, the
average estimate of analysts polled by First Call/Thomson
Financial. Estimates ranged from 43 cents to 47 cents.

Dynegy's 1st-Qtr Profit Rises 73% on Gas, Power Sales (Update4)
2001-04-17 16:21 (New York)

Dynegy's 1st-Qtr Profit Rises 73% on Gas, Power Sales (Update4)

     (Adds company comment on future earnings and additional
generation capacity in the fifth paragraph, closes shares. For
more on California, see {EXTRA <GO>}.)

     Houston, April 17 (Bloomberg) -- Dynegy Inc., a U.S.
electricity and natural gas trader, said first-quarter profit rose
73 percent as colder winter weather boosted gas and power sales.
     Profit from operations rose to $137.5 million, or 41 cents a
share, from $79.4 million, or 26 cents, a year earlier, the
company said in a statement. Revenue more than doubled to $14.2
billion from $5.35 billion.
      Marketing and trading profit almost doubled to $100.3
million, or 73 percent of net income as the average price of gas
more than doubled from a year ago. Power sales to California, hit
by a 10-month electricity crisis, ``did not make a material
contribution'' to earnings, the statement said.
     ``It's not just a California ballgame,'' UBS Warburg analyst
James Yanello said. ``Lots of areas around the country have supply
and demand imbalances, and this is one of the big players capable
of resolving those supply and demand issues.''
     Company executives remain comfortable with their earlier
second-quarter earnings guidance of 35 cents a share, Chairman
Chuck Watson told analysts during a conference call. Next year's
earnings likewise should increase by up to 25 percent as Dynegy
continues to build or acquire power plants, he said.
     ``What's driving the train for Dynegy for the past few years
is the continued adding to our portfolio in generation across the
country, and I don't see that slowing down in 2002,'' Watson said.

                         California Reserves

     Dynegy has a reserve to cover money it might not get from
power sales to California, canceling out profit from the state,
spokesman Steve Stengel said.
     The company was owed $265 million from power sales to
California as of Feb. 28, a filing with the U.S. Securities and
Exchange Commission said.
     Dynegy, based in Houston, and joint venture partner NRG
Energy Inc. have sold 2,300 megawatts of power to the state's
Department of Water Resources through 2004. That has cut credit
risk from the state's cash-strapped utilities, the company said.
     California power prices rose ninefold last quarter from a
year ago. A megawatt is enough power to light about 1,000 U.s.
home.
     Shares of Dynegy rose $2.80 to close at $55.95. They are
almost unchanged for the year.

                             Northeast

     Dynegy's electricity sales and production rose 19 percent
last quarter to 26.1 million megawatt-hours from a year ago,
boosted by the addition of 1,100 megawatts of generation in the
2000 second half and the purchase last quarter of New York state
power plants that can produce 1,700 megawatts.
     ``Dynegy is in a good position to earn good returns from
those plants,'' analyst Anatol Feygin of J.P. Morgan Securities
Inc. said. ``The press is full of prognostications that the New
York area and the Northeast are the next California.''
     New York and New England won't have enough generators or
power lines to meet demand if temperatures are higher than normal
this summer, industry officials have said. Few were built in the
Northeast in recent years because of regulatory hurdles, even as
economic growth boosted electricity consumption.

                          Broadband Loss

     Dynegy's new Global Communications division, which markets
and trades broadband, had a $11.6 million loss from start-up and
expansion costs.
     Profit from the processing and marketing of natural-gas
liquids fell 5.4 percent to $22.9 million. Last year's profit
included about $4 million from assets that have been sold.
     Profit at Dynegy's Illinois Power utility, with 650,000 gas
and power customers in southern Illinois, more than quintupled to
$25.9 million on cost reductions and higher winter demand.
     The company was expected to earn 40 cents, based on the
average estimate of analysts surveyed by First Call/Thomson
Financial.
     A gain of $2.03 million in the quarter from an accounting
change made net income of $139.5 million, or 41 cents a share. A
year ago, a gain of $33.8 million from a power-plant sale and a
charge of $44.2 million made net income $69 million, or 23 cents.

Red Herring 100 Celebrates Top Companies Reshaping Business

04/17/2001
PR Newswire
(Copyright (c) 2001, PR Newswire)

Magazine Chooses 50 Private and 50 Public Companies That Continue to Reshape
Markets Despite Current Economic Trends
SAN FRANCISCO, April 17 /PRNewswire/ -- In the fifth annual Red Herring 100,
editors of Red Herring, the leading magazine on the business of technology
and innovation, identify the 100 companies whose products, services or
business models - despite current economic uncertainties-continue to forge
new markets. The leaders are profiled in Red Herring's May 1 double issue and
are posted at http://www.rh100.redherring.com.
The Red Herring 100 stands apart because companies are not measured by
statistics alone, but are also reviewed on the subjective and metrical
criteria favored by venture capitalists and investment bankers, including: a
company's potential for disrupting its market, its execution of a sound
strategy, the quality of its management and its financial performance, which
is summed up by "The Herring Take".
The listing favors companies whose promise is based on innovative and
defensible technology with more than a dozen sectors represented, including
software, biotechnology and communications services. Major category shifts
were recognized in this year's Red Herring 100 in sectors like data storage,
enterprise software and semiconductors, while entire sectors that failed to
remain innovative are gone: Linux companies, PC makers, wireless
communications and commerce.
Editor Jason Pontin explained that companies were chosen for the Red Herring
100 based upon the magazine's belief in certain broad trends: continuing
importance of IP telephony, critical advancements in energy production, the
sudden glamour of biotechnology, and the utility of reconfigurable
microchips.
"In short, the Red Herring 100 are companies that retain the capacity to
disrupt existing markets or create entirely new ones," Pontin exclaims. "As
we shout on our cover, whatever the state of public and private equity
markets, these companies still matter." The Red Herring 100
50 Private Companies 50 Public Companies
Accel Partners Akamai Technologies
Accenture AOL Time Warner
Aimster Applied Micro Circuits Corporation
AirFiber Ballard Power Systems
Altra Energy Technologies Charles Schwab
Amber Networks Check Point Software Technologies
Asera Ciena
Bang Networks Cisco Systems
Bertelsmann Citigroup
Bowstreet Corning
Centerpoint Broadband Technologies Credit Suisse Group
Cereva Networks eBay
Cytokinetics Electronic Arts
eCredit.com Enron
Excelergy EMC
Foliofn Exodus Communications
Genoa Flextronics
ID Software Gemstar-TV Guide
Intira Genentech
Jamcracker Goldman Sachs
Kleiner Perkins Caufield & Byers Homestore.com
LaserComm i2 Technologies
Layton BioScience IBM
Matrix Partners Illumina
Mellanox Technologies Immunex
Metro-Optix JDS Uniphase
NerveWire Juniper Networks
Nishan Systems McLeodUSA
PhotonEx Metromedia Fiber Network
PurpleYogi Microsoft
RealChip Communications Morgan Stanley Dean Witter
Savi Technology Network Appliance
Scale Eight Nortel Networks
Science Applications International Corp. NTT DoCoMo
SeeCommerce Oracle
Sequoia Capital Palm
SmartPipes PMC-Sierra
Telseon Qwest Communications
Tensilica Research in Motion
Thomas Weisel Partners Siebel Systems
Tradescape.com Singapore Telecommunications
Troika Networks Sun Microsystems
Tropian Sycamore Networks
VBrick Systems Taiwan Semiconductor Manufacturing Co.
Voxeo Texas Instruments
Walmart.com Veritas Software
Xacct Technologies Vitesse Semiconductor
Xenoport Vivendi Universal
Yipes Communications Vodafone Group
Zaplet Yahoo
About Red Herring Communications, Inc.

Red Herring Communications, Inc. is an integrated network of media properties
connecting the people, companies and industries whose ideas and technological
innovations are inspiring and reshaping the world of business. Founded in
1993, Red Herring magazine, the company's flagship platform, provides
in-depth analysis and reporting on the business of technology, innovation and
entrepreneurialism. RedHerring.com, Red Herring Research and Red Herring
Events offer a unique blend of news, commentary, financial analysis, investor
tools and access to leaders of emerging technologies and markets. A privately
held company, Red Herring Communications, Inc. is headquartered in San
Francisco and has offices in New York, Los Angeles, Boston and London.

/CONTACT: Deirdre Hussey of Red Herring Communications, Inc., 415-486-2879,
dhussey@redherring.com/ 16:47 EDT

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

Enron Says PG&E Owes About $570 Million, CNBC Says (Update1)
2001-04-17 11:08 (New York)

Enron Says PG&E Owes About $570 Million, CNBC Says (Update1)

     (Adds earlier report in fifth paragraph.)

     Houston, April 17 (Bloomberg) -- Enron Corp. is owed about
$570 million in gross receivables by PG&E Corp., Enron President
and Chief Executive Jeffrey Skilling said in an interview with
financial news network CNBC.
     Enron, the largest energy trader, is fully reserved and has
some offsets against that amount, Skilling said. PG&E filed for
bankruptcy this month.
     ''It's not a good situation when a state allows a company
with a 100-year history to go bankrupt,'' Skilling said. ``It's
kind of surprising.''
     There is a big threat of politicizing the energy situation in
the West, Skilling said. Some proposals in various state
legislatures ``would be enough to make an economist cry,'' he
said.
     The Houston Chronicle reported the $570 million figure this
weekend, citing a letter from Enron to a bankruptcy trustee. Enron
refused to confirm the figure until today.


These are the post-id's for today

Price			1450823
Basis			1450824
Index			1450825
GDM			1450826
GDY			1450827
GDM-Canadian		1451412		these two books were added to capture the canadian priced deals
GDY-Canadian		1451413

Thanks

Kam


Hi Kam,

Attached is a listing of all the indexes currently mapped in the EOl database for Nat Gas. I'll call you to go over this in detail.

Thanks,

Torrey Moorer
EnronOnline Product Control Group
(713) 853-6218


lots of producer selling cal 2 and front strong so h/j still blowing out

 -----Original Message-----
From: 	Abramo, Caroline
Sent:	Monday, June 18, 2001 12:17 PM
To:	Arnold, John
Subject:	RE: Cali

hmmm.. will check with mike .. also the DWR contract summary should be out this afternoon.. fraser's group analyzing.

anything going on?  too early to short the mar/apr?


What time's the show?  Do we know what station?  Here are my points:

Stop the blame; stop the political rhetoric.
If there's evidence that manipulation has occured, produce it--the
investigations have been going on for a year.  Stop the McCarthyist tactics.
Californians want a real, comprehensive solution that is bi-partisan
More supply
Less demand
No state takeovers; state out of procurement now.
A real energy market place (competition and choice)
Creditworthy utilities (prices that reflect the true cost of power)

	Karen Denne
	05/30/2001 11:31 AM

		 To: Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron
		 cc:
		 Subject: "To the Point" Radio Show

I think we can give Gary some message points, agree?  What topics do we want
him to hit -- stop the rhetoric, implement a comprehensive solution (which
includes more than just rate increases), etc, etc...
---------------------- Forwarded by Karen Denne/Corp/Enron on 05/30/2001
11:00 AM ---------------------------

Gary Ackerman <foothillservices@mindspring.com> on 05/30/2001 10:23:10 AM
Please respond to foothillservices@mindspring.com
To: Dan Douglass <douglass@arterhadden.com>, Lynn Lednicky <LALE@dynegy.com>,
Sandra McDonough <Sandra.McDonough@neg.pge.com>, Dan Pigeon
<Dan_Pigeon@transalta.com>, Lynn Fisher <lfisher@apx.com>, Karen Denne
<kdenne@enron.com>, Richard Wheatley <richard_n_wheatley@reliantenergy.com>,
Paula Hall-Collins <paula.hall-collins@williams.com>, Julie Gentz
<julie.gentz@williams.com>, Kelly Swan <kelly.swan@williams.com>, Joe Ronan
<joer@calpine.com>, Tom Williams <tcwillia@duke-energy.com>, Ed Mosey
<efmosey@bpa.gov>, Mike Hansen <mshansen@bpa.gov>, Jan Mitchell
<jan.mitchell@pacificorp.com>, Toni Amendolia <mozart@pwrteam.com>, Mark
Stutz <mark.stutz@xcelenergy.com>, Steve Roalstad
<steve.roalstad@xcelenergy.com>, John Sousa <joso@dynegy.com>, John Fistolera
<johnf@ncpa.com>, Dace Udris <dudris@smud.org>, carol clawson
<carol_clawson@fpl.com>, catherine Parochetti
<catherine.parochetti@avistacorp.com>, Chuck Griffin
<chuck.griffin@mirant.com>, "O'Neel, Brian" <Brian.ONeel@mirant.com>
cc:

Subject: "To the Point" Radio Show

I will be in Warren Olney's To the Point national radio show today with
Frank Wallach, Maviglio, etc. to discuss Bush's visit to California, and
energy policy.

Feed me.

gba


Attached is the final draft of the press release relating to Project True
Blue.  It has been approved by the deal team, outside counsel, and Investor
Relations.  I propose issuing the release one hour after sending the proposal
letter to True Blue's board.   True Blue should issue a press release
acknowledging receipt of the offer as well as file the letter as part of an
8-K.  True Blue's timing should be approximately one-half hour after our
release.

Please send any comments to me at 34738, or reply to this email.

Mark Palmer


Susan Adger
615 Magnolia St
Dunedin, FL 34698
sadger@tampabay.rr.com

To Mr. Ken Lay,

I'm writing to urge you to donate the millions of dollars you made from selling Enron stock before the company declared bankruptcy to funds, such as Enron Employee Transition Fund and REACH, that benefit the company's employees, who lost their retirement savings, and provide relief to low-income consumers in California, who can't afford to pay their energy bills.  Enron and you made millions out of the pocketbooks of California consumers and from the efforts of your employees.

Indeed, while you netted well over a $100 million, many of Enron's employees were financially devastated when the company declared bankruptcy and their retirement plans were wiped out.  And Enron made an astronomical profit during the California energy crisis last year.  As a result, there are thousands of consumers who are unable to pay their basic energy bills and the largest utility in the state is bankrupt.

The New York Times reported that you sold $101 million worth of Enron stock while aggressively urging the company's employees to keep buying it.  Please donate this money to the funds set up to help repair the lives of those Americans hurt by Enron's underhanded dealings.

Sincerely,

Susan Adger


Please take me off you distribution.


Hey Debbie,

Just wanted to inform you that the volume at the Trevino Plant will be moved
over to the Garza Plant (440-552) effective 5/17. The total volume is 5228
and is expected to increase effective 5/18.  Please let me know if you have
any questions.

Ami
713/853-9272


done.  You now have 2,000 shares and $1,000 cash in your account.
PL

 -----Original Message-----
From: 	"Love, Dianne" <love@cl.uh.edu>@ENRON
Sent:	Sunday, January 27, 2002 2:04 PM
To:	Phillip (E-mail)
Subject:

The company is Nuerotech.  Their symbol is NURO.  They building/market
modular hospitals internationally.  They should be selling at $0.25. Buy
2,000 shares or $500 worth.  I should have the cash in my account from the
Enron sale.


Margin requirementst substantially reduced if we have it.

-----Original Message-----
From: Schuler, Lance (Legal)
Sent: Wednesday, January 09, 2002 6:25 PM
To: Kitchen, Louise
Subject: Fw: Re: Fw: Is Netco getting the Nymex seat?

From Golden.

-----Original Message-----
From: Golden, Jeff <Jeff.Golden@ENRON.com>
To: Schuler, Lance (Legal) <Lance.Schuler-Legal@ENRON.com>; Muller, Mark S. <Mark.Muller@ENRON.com>; Taylor, Mitch <Mitchell.Taylor@ENRON.com>
Sent: Wed Jan 09 18:21:09 2002
Subject: Re: Fw: Is Netco getting the Nymex seat?

Being negotiated
--------------------------
Jeff Golden


Attached are the proposed letter to employees and response statement for any
media inquiries.  Your comments and approval would be appreciated.  FYI, we
have not had any more inquiries about Sanjay over the past two days and will
not use either of these until you tell us to proceed.

John