Keith,

The article I mentioned.

Vince

***********************************************

rashed By Tax Selling

                  But are there bargains among the discards?

                  By Michael Santoli

                  Here it is more than six months since even the most
intransigent last-minute
                  filers wrote checks to the IRS to render to the government
its due for their
                  financial good fortune in 1999. By rights, this should be a
season relatively
                  free of concerns about taxes, notwithstanding the
presidential candidates'
                  parrying over whose tax-cut math features more fuzz.

                  And yet, for anyone with a dollar in the stock market
(which in recent weeks
                  has likely been reduced to loose change), the looming
demands of this year's
                  levies on capital gains have helped to make this month yet
another taxing
                  October for investors.

                                                 The jump-and-stumble course
the
                                                 major stock indexes have
taken this
                                                 year is being blamed for a
                                                 particularly intense effort
among
                                                 mutual-fund managers and
other big
                                                 investors to sell their
losers. The
                                                 steep ramp-up in stocks that
                                                 persisted from the fall of
1999
                                                 through the first quarter of
this year
                                                 -- led by the technology
                                                 must-haves -- left funds
with ripe
                                                 profit-taking opportunities
when the
                                                 Nasdaq surge flagged in
April. This
                  sell-high activity generated heavy capital gains in many
portfolios -- tax
                  liabilities that managers have been rushing to offset with
realized losses by
                  selling stocks that have cratered.

                  The fact that so many funds are enduring a flat-to-down
year in this difficult
                  market has only added to the urgency. Investors aren't fond
of getting stuck
                  with taxable distributions in even the most flush years of
a bull market. So
                  managers are now trading in fear of how their shareholders
will react to funds'
                  kicking off gains distributions in a year when the value of
their holdings fails to
                  appreciate or, worse, falls outright. With the majority of
funds operating on an
                  October 31 fiscal year end, and given a trend toward
letting investors know
                  their estimated tax hit well before year's end, much of
this selling has been
                  concentrated in a brief period of weeks.

                  One fund executive attending a Fidelity mutual-fund
conference last week
                  reported that, oddly, some managers have resolved to be
contrary and
                  "overdo it" in selling even their winners. The theory, he
reports, is that if
                  they're going to have a capital-gains distribution anyway,
the most skittish
                  shareholders will sell the fund to avoid the payout and its
tax liability, whether
                  it's, say, either 10% or 12% of net asset value. So the
idea is to take profits
                  and "reload" for the benefit of those investors who will
stick around.

                  Now, with the Nasdaq off 22.7% since Labor Day and 8% so
far in
                  October, much talk is bubbling about suggesting that the
assault is ending.
                  This line of reasoning counsels that it's time to peek out
of the foxhole and
                  survey the wreckage for some badly damaged stocks to pick
up in
                  expectation of a late-year rally.

                  Not so fast. While it's true that in past years, these
hard-hit tax-selling victims
                  tend to recover in the early part of November, the move
often proves fleeting.
                  Like a ball being held under water, these stocks jump when
the downward
                  pressure is released, but that doesn't mean they escape
gravity's pull for long.
                  Soon enough, they're hit by a secondary wave of selling by
investors who tidy
                  up their tax situation closer to the end of the year.

                  The quantitative equity research team at Lehman Brothers
has studied recent
                  market history in search of patterns in tax-driven selling.
In the process, the
                  analysts came up with a list of 131 stocks that look
vulnerable to persistent
                  weakness through most of the fourth quarter. The study
scanned the Russell
                  3000 index -- basically the 3,000 largest U.S. stocks --
for those that had
                  fallen at least 40% this year through September, and had
lost at least 10% in
                  the prior six months. They also plucked only those stocks
that had seen rising
                  trading volume over that period. The idea was to find only
those names that
                  seem to be in the throes of a selling crescendo. In 1997,
there were just eight
                  such stocks. In 1998, there were 202 and last year 101, on
a par with this
                  year's tired crop.

                  Murali Ramaswami of Lehman says, "There's both a tax-loss
story and a
                  momentum story. Losers continue to be losers." At least
through the fourth
                  quarter they do.

                                       The negative momentum of these stocks
tends to
                                       gather speed from the first week of
November to
                  Christmas. In this period, from 1997 through last year, the
Losers Portfolio
                  dropped an average of 20% more than did the Russell 3000
index.
                  Bottom-fishers, beware.

                  The resulting list, which Lehman billed to its
institutional clients as a menu for
                  hungry short-sellers, features numerous stocks caught in
the major downside
                  themes of the year. Name a major telecom-services provider
and the odds
                  are good it's in this bunch, the result of a stampede away
from the group. Big
                  retailers also dot the down-on-their-luck roster, as the
slowing economy has
                  ravaged shares of Circuit City, Dillards, Saks and others.
And of course there
                  are plenty of dot.com names experiencing the ugly side of a
mania undone, in
                  a reversal that has made some mere flyspecks on the
market's windshield.
                  Witness Barnesandnoble.com and Razorfish.

                  An intrepid prospector surveying this list in a quest for
next year's Comeback
                  Stock of the Year will encounter no shortage of companies
that appear, for
                  the moment, broken and in need of an inspired strategic
revamping, some
                  slick investor-relations work and plenty of luck. Former
blue chips such as
                  Lucent Technologies, Bausch & Lomb and Dial seem to fall
into that club,
                  where for investors a love of dirt-cheap stocks and a
strong backbone is the
                  price of admission. DuPont, which recently ratcheted down
its 2001 growth
                  forecast and is beset by high raw-materials costs, is
arguably apt to remain in
                  the investors' time-out chair for a while as well. That its
shares failed to sell off
                  after a limp earnings report last week is perhaps the most
hopeful sign one can
                  seize on with regard to the chemicals giant.

                  Still, for the investor patient enough to endure what could
be a stormy
                  November and December, a few sizable companies with
temporary problems
                  but solid long-term growth stories are attracting some fund
managers looking
                  to buy. As detailed in Barron's last week ("Retailers on
Sale," October 23),
                  there is reason to expect better performance from selected
retail chains.
                  Federated Department Stores, the parent of Macy's and
Bloomingdale's,
                  merits attention both for its buoyant same-store sales
growth in a retail
                  headwind and for its repair of the addled Fingerhut
catalogue division, which
                  suffered a spike in delinquencies. The shares are off their
trough levels in the
                  low 20s, but a recent quote of 28 still seems a
better-than-fair price for a
                  company that some pros believe could earn more than $5 a
share next year.

                  The advertising business this year is being given the cold
shoulder by investors
                  after a torrid love affair through 1999. Fearing that the
dot.com washout and
                  resultant cash drought would wither the bottom line of ad
firms, investors
                  abandoned Interpublic, the third-largest owner of ad
agencies after WPP and
                  Omnicom.

                  But Mark Greenberg, manager of the Invesco Leisure fund,
saw a chance to
                  pick up a "good, solid company" inexpensively when
Interpublic hit the low
                  30s. Now at 39, Interpublic is still fetching just 22 times
forecast 2001
                  earnings, which are expected to grow 15%, faster than
profits for the overall
                  market.

                  "I bought some early this year and added to it just
recently. The bad news is
                  probably priced into the stock, and then some," he says.

                  Madison Avenue markdown

                  Interpublic, parent of McCann Erickson, among other firms,
has always
                  suffered a bit in comparison with Omnicom, a market darling
considered the
                  class operator in the industry. But Interpublic now trades
at a discounted
                  valuation, and is briskly expanding its direct-marketing
and public-relations
                  business, which are growing faster than the traditional
Madison Avenue game.
                  Add in the fact that only a sliver of its business comes
from dot.coms and that
                  half its revenues are collected overseas, and Interpublic
appears well insulated
                  from crippling economic forces.

                  In a more prosaic corner of the ad business sits Valassis
Communications, a
                  big coupon distributor, which produces the colorful inserts
that fall out of your
                  Sunday paper. A well-loved growth stock that pleased many a
small and
                  mid-cap fund manager in 1999, Valassis this year ran into a
nettlesome
                  combination of higher paper prices and stiffer price
competition in one of its
                  insert categories. Investors bailed out in droves, halving
the stock from a high
                  above 44 to just north of 20. Now at 25, the shares are
"absurdly cheap,"
                  says Greenberg, who also owns Valassis.

                  Another fund manager points out that the company has taken
control of its
                  troubles, with hedged paper prices and a move to cut supply
in products
                  where pricing declined. Even with its growth forecast
revised downward,
                  Valassis is still expected to increase profits at a 10%-15%
long-term rate, and
                  earnings next year should rise close to 12%, to $2.50 a
share. That leaves the
                  stock at a mere 10 times next year's profits. And it's
worth noting that in times
                  of slower economic growth, coupons are among the things
that companies
                  continue to offer to bargain-hunters.

                  With a new wave of tax selling due to bear down on haggard
stocks any
                  week now, it might feel as if the typical first-quarter
rebound in the year's
                  losers that's been documented by Lehman Brothers is
hopelessly distant.

                  If you're tempted nonetheless to plunge ahead and buy a
beaten-down mutual
                  fund, check first to see if it will be among those making a
capital-gains
                  distribution later this year. In that case, you'll be on
the hook for the tax even
                  though you didn't participate in the gain. (You can take
the plunge without
                  worrying about payouts if you're buying the fund for a
tax-deferred account
                  such as a 401(k) or an IRA.)

                  But at least in selected stocks, it seems the machinations
of tax-fearing
                  investors have created the stock market equivalent of a
25%-off sale, and you
                  don't need to redeem a manufacturer's coupon to take
advantage.


F.Y.I.

  Business; Financial Desk
  Sempra Still Feeling the Heat Energy: The parent firm of 2 Southern
California
  utilities is weathering criticism from all sides, with more flare-ups on
the horizon.
  NANCY RIVERA BROOKS

  09/17/2000
  Los Angeles Times
  Home Edition
  Page C-1
  Copyright 2000 / The Times Mirror Company

  Sempra Energy just can't seem to get out of the hot seat.

  First there was the controversial 1998 merger between the parents of San
Diego Gas &
  Electric and Southern California Gas, which created the Sempra Energy
holding company
  and gave it more customers--21 million--than any other utility company in
the nation.

  Now, although the calendar says autumn is less than a week away, warm
weather still has
  Sempra sweating through a summer of electricity discontent. And winter
doesn't look like
  much fun either for Sempra or its natural-gas customers, with residential
gas bills projected
  to increase 30% to 35% without fueling anything above a strictly regulated
rate of return for
  Sempra's gas utilities.

  Hanging over the San Diego-based energy company is a new uncertainty
generated by the
  turmoil in California's restructuring electricity industry. Of particular
concern to the
  investment community is a rapidly swelling debt caused by the difference
between the high
  wholesale cost of electricity and the freshly capped retail power rates for
the 1.2 million
  customers of San Diego Gas & Electric.

  Who will pay that debt--Sempra Energy's shareholders or SDG&E's electricity
  customers--and how big it will grow may not be known for years. The answer
will hinge in
  part on an investigation of SDG&E's conduct by the California Public
Utilities Commission.

  In the meantime, Sempra Energy, whose two utilities serve nearly 7 million
gas and
  electricity meters representing about 21 million customers from Central
California to the
  Mexican border, continues to post sparkling earnings largely because of its
non-utility
  businesses. Sempra wants to be much more than its utilities, pushing into
energy trading
  and electricity and natural-gas contracting outside of California.

  Indeed, Sempra has stressed that recent profit surges came not at the
expense of its
  California utility customers. Consumer advocates are not persuaded,
painting Sempra as a
  profit-hungry company that has not done enough to protect ratepayers.

  Despite all the tumult, Sempra's previously languid stock price has risen a
bit this summer,
  a fact that appears to amaze even Stephen L. Baum, Sempra's new chairman
and chief
  executive.

  "Maybe it's all the publicity we've been getting," he recently quipped,
ruefully.

  It's a careful-what-you-wish-for proposition for Sempra Energy, which spent
hundreds of
  thousands of dollars in the last two years to boost its corporate profile
by, among other
  things, becoming a sponsor of Staples Center and rolling out a new logo
that looks like a
  small flaming man. Now the corporation and its San Diego utility are
puzzling over how to
  repair an image so scorched that angry residents in SDG&E's
4,200-square-mile territory
  covering the San Diego area and southern Orange County have taken to
verbally and
  physically abusing company employees.

  "This has been an agonizing time for all of us," Baum told the Federal
Energy Regulatory
  Commission at a hearing Tuesday that is part of an investigation into this
summer's
  gyrations in the California wholesale electricity market. "SDG&E takes
enormous pride in
  serving this community with safe and reliable electric service at, what
were until recently,
  just and reasonable prices."

  Although regulators themselves, not to mention consumer advocates, warned
of looming
  shortages in power supplies, no one predicted this summer of sky-high
prices during which
  wholesale electricity prices jumped fivefold and bills doubled for SDG&E
customers, the
  first in the country to pay free-market power prices.

  That produced a "Ratepayer Rebillion"--so dubbed by Michael Shames,
executive director
  of the San Diego-based Utility Consumers Action Network, a longtime SDG&E
sparring
  partner. The shock waves quickly reached utility regulators and state
lawmakers, the
  architects of electricity deregulation , who are still scrambling for
solutions.

  "SDG&E has become the corporate equivalent of the gang that couldn't shoot
straight,"
  Shames said. "They have the distinction of having the market blow up on
them in a very
  visible way . . . and I'm quite convinced they didn't have a clue how
customers were going
  to respond."

  This high-voltage atmosphere visited the San Diego area because SDG&E did
such a good
  job selling its power plants, as required under deregulation . The 1996 law
that launched
  the overhaul of California's electricity world broke the industry into
three separate
  businesses: companies that make electricity, companies that distribute
electricity and
  companies that sell electricity directly to consumers and businesses.

  SDG&E and the state's other big investor-owned utilities--Edison
International unit Southern
  California Edison and PG&E Corp.'s Pacific Gas & Electric--lost their
secure monopoly
  status. They were deemed to be electricity distribution companies
only--though still
  monopolies in that segment of the business.

  The utilities handed over their long-distance transmission systems to a new
nonprofit, the
  California Independent System Operator, and were required to buy their
electricity from
  another new nonprofit, the California Power Exchange. The utilities
remained the default
  provider for customers who didn't pick a new electricity retailer, but they
were required to
  pass along the cost of electricity with no markup.

  Electricity rates for consumers and small businesses were frozen until the
utilities paid off
  their "stranded assets"--investments in nuclear power and renewable energy
contracts that
  became unprofitable under deregulation --or until March 2002. Rates are
still frozen for
  SCE and PG&E customers, but SDG&E customers lost that protection in July
1999, after
  the San Diego utility sold its power plants to eager buyers who were
willing to pay much
  more than book value.

  The rapid payoff surprised even regulators, who had developed no
post-freeze rules. The
  California Public Utilities Commission allowed SDG&E to maintain a 12%
ceiling on prices
  for the summer of 1999 and recoup any excess electricity costs later.
Thanks to a cool
  summer and a smoothly functioning wholesale market, the ceiling was little
employed.

  This summer, however, no ceiling was allowed by the PUC as part of its
original post-freeze
  order, SDG&E executives said. And prices on the California Power Exchange
began
  behaving strangely, spiking higher and higher even in the middle of the
night when demand
  was low.

  San Diego-area electricity users began seeing "true market prices from a
market that's
  dysfunctional," Baum said. "Of course I wish we had foreseen this market
spike. We
  didn't."

  Consumer fury has been calmed somewhat by a new law that caps electricity
prices for
  SDG&E residential and small-business customers at 6.5 cents a
kilowatt-hour, compared
  with the 21.5-cent peak this summer. Who will eventually pay the
electricity costs above
  the cap, currently collecting in a balancing account, is left unclear by
the legislation.

  It could mean a big balloon payment for customers, or some of the costs
could be shared
  by SDG&E if a PUC investigation finds that the utility didn't act in the
best interests of its
  customers in buying electricity. A companion bill that would use $150
million in taxpayer
  funds to defray some of the costs passed the Legislature but has not been
signed by Gov.
  Gray Davis.

  "I don't think that we did anything wrong," Baum said. "This is a bum rap
that has been
  hung on us, on SDG&E, that we somehow mismanaged the power supply for our
  customers."

  PUC officials and consumer advocates have criticized SDG&E for not
"hedging" more by
  buying ahead of time when prices are relatively low, for example. SDG&E
said that it asked
  the commission for such authority but didn't get it. What's more, Baum
said, SDG&E found
  better prices for its customers than did SCE or PG&E, even though they have
broader
  hedging ability.

  SDG&E will have to borrow money to pay for the electricity, since
ratepayers aren't paying
  the full cost. SDG&E says the under-collection of electricity costs could
eventually top
  $800 million, whereas sponsors of the rate-cap bill put the total closer to
$150 million.

  The future debt and the unsettled state of the deregulation process in
California were the
  reasons given when Moody's Investors Service recently changed the credit
outlook for
  Sempra and SDG&E to "negative."

  Shareholders can't be happy with Sempra's stock price, which fell from a
high of about $28
  a share right after the 1998 merger between Enova and Pacific Enterprises,
which was
  loudly opposed by consumer advocates because of the market clout a merged
company
  would wield, to a low of $16.63 in April. Sempra bought back 36.1 million
shares at $20
  each in February and lowered the stock dividend to $1 a share from $1.56 a
share. The
  stock closed Friday up 14 cents at $20.14 on the New York Stock Exchange.

  Baum acknowledged that the company has lagged in return to shareholders,
blaming that
  partly on a turning away by investors from utilities and other old-economy
companies to
  Internet and other new-economy stocks.

  Sempra wants to be much more than its utilities and has made some promising
inroads
  into unregulated areas, such as energy commodity trading,
telecommunications,
  power-plant building and the sale of electricity and natural-gas to
consumers and
  businesses in other states, Mexico, South America and Canada, analysts said.

  In fact, Sempra Energy Trading, which buys and sells electricity, natural
gas, oil and coal,
  earned more money in the first quarter--$3 million--than in all of 1999.
That subsidiary's $40
  million in second-quarter earnings was primarily responsible for Sempra's
  better-than-expected income for the period of $110 million, or 55 cents a
diluted share, up
  34% from the second quarter of last year.

  Analyst Paul Fremont of Jefferies & Co., who has a "buy" rating on Sempra,
notes that the
  trading company income will be volatile and that the other subsidiaries
remain unknown
  quantities.

  "They've really got to have sustained growth in that [unregulated] part of
the business
  because there's not a lot of growth in the utility part" in California,
Fremont said.

  Sempra's earnings growth during this electricity furor has consumer
advocates fuming even
  though company executives emphasized that electricity trading gains came
from the East,
  not California.

  "Consumers don't need to feel sorry for this company," said Mindy Spatt,
spokeswoman for
  the Utility Reform Network, also known as TURN, a San Francisco-based
consumer group.
  Spatt noted that Sempra's new El Dorado power plant near Las Vegas "did
very well"
  selling electricity in Nevada and California during most of the second
quarter.

  "We don't think consumers should be responsible for the failures of
deregulation , and we
  think that Sempra is in a much better position to pay for some of these
costs than the
  average San Diegan," Spatt said.

  Sempra has had some problems in reaching beyond its California utility
origins. One
  subsidiary, Energy America, which sells electricity and natural gas door to
door in six
  Eastern states, has run afoul of regulators in two states because of
aggressive sales
  tactics that prompted complaints from consumers. The company has been
variously fined
  and ordered to retrain salespeople.

  Sempra is on track to reach its goal of reaping one-third of its earnings
from its
  non-California businesses by the end of 2003 and to increase overall
earnings by 8% to
  10% compounded annually in the next four years, Baum said.

  That success is whipping up customer ire.

  "People tend to look at Sempra-SDG&E as a monolith. . . . People are
saying, 'They're
  making a ton of money here. That company is doing very well. We're getting
screwed, and
  we don't like it, and why should we have to pay for it?' " Baum said. "It's
a very natural
  reaction. People don't understand, and they don't care to understand."

  One of SDG&E's immediate concerns is fixing relations with its customers.
Baum said the
  utility recently polled customers and found that 9% considered it credible,
down from 35%
  ("which is not much to brag about, but it's not bad in the utility
business") before the
  electricity crisis.

  "I don't know that a corporation can do very well with a credibility rating
of 9% on a
  sustained basis. That is something I worry about," Baum said.

  SDG&E President Debra L. Reed said most customers don't understand that the
  investor-owned utilities are now only distribution companies, despite a
$90-million education
  campaign by the Public Utilities Commission.

  "They see our name on the bill and they think we're making money on the
commodity,"
  Reed said. "We have a lot of education to do with our customers. But we
realize that it is
  probably not the best time to educate them in the middle of what they see
as a crisis. . . .
  What we're trying to do is help them through this."

  (BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

  Metering Sempra Energy

  Earnings are up at Sempra Energy, but the San Diego company is spiking on
the
  controversy meter because of soaring bills for customers of its utilities,
San Diego Gas &
  Electric and Southern California Gas. Sempra's name is not well-known, but
its utilities
  serve 21 million people from the Central Valley to the Mexican border.

  (BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

  Branching Out

  Sempra Energy also is pushing into other businesses, primarily outside of
California:

  Sempra Energy Trading: Trades energy commodities

  Sempra Energy International: Develops and operates energy projects such as
power plants
  and natural gas lines in international markets

  Sempra Energy Solutions: Markets electricity, natural gas and energy
services to large
  electricity users

  Sempra Energy Resources: Develops or buys power plants and natural gas
facilities in the
  United States

  Sempra Communications: Invests in telecommunications

  Sempra Energy Financial: Invests in affordable housing partnerships

  Source: Company reports

  PHOTO: Sempra's San Diego headquarters; ; GRAPHIC: Metering Sempra Energy,
Los
  Angeles Times;

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

  Financial
  Is Another Energy Crisis Ahead?; Winter Fuel Costs Will Rise; After That,
Nothing Is
  Certain
  Kenneth Bredemeier

  09/17/2000
  The Washington Post
  FINAL
  Page H01
  Copyright 2000, The Washington Post Co. All Rights Reserved

  This winter the mailman will be delivering markedly higher heating bills
throughout much of
  the country, including the Washington area.

  Those who use natural gas--the dominant heating fuel in the Washington area
and
  throughout the United States--face a 27 percent increase. Heating oil
customers,
  particularly in the Northeast where 35 percent of homeowners use the fuel
to warm their
  houses, may have to pay more than $2 a gallon--twice the current price--as
the days grow
  shorter and temperatures plunge.

  Motorists get hit in the wallet every time they pull into a service
station: They now typically
  pay more than $1.60 a gallon for gas, and the days of 90-cent-a-gallon
gas--yes, it was just
  last year--are but a distant memory. At least that's better than in
England, France and
  Belgium where motorists are waiting in long lines to buy $4-a-gallon gas,
only to find that
  some stations have run out.

  Is this the start of an energy crisis?

  Many energy analysts and government economists say not, that supplies of
various forms
  of energy will prove sufficient over the next few months, but that the
costs will continue to
  follow the law of supply and demand. When there's not an excess of a fuel
available--and
  numerous types of fuel reserves are quite low--consumers will likely think
the product costs
  too much, at least compared with the prices they've been accustomed to
paying.

  But as winter approaches, several loosely connected events that spanned the
globe over
  the past couple of years have heightened awareness of energy in our lives
and reminded us
  of a lesson learned in the 1970s: Energy prices can be volatile,
unpredictable and can
  reverberate throughout the economy.

  As Philip Verleger Jr., a partner with the Brattle Group, a Cambridge,
Mass., economic
  consulting firm, concluded, "Consumers will have to spend more on energy.
They will have
  less to spend on other things."

  On top of the triple-whammy of higher natural gas, heating oil and gasoline
prices,
  consumers are also vulnerable to the vagaries of the electricity market
because the industry
  has been in the midst of deregulation .

  While California and other states have struggled with power prices during
the adjustment to
  the new competitive environment, electric utilities locally have maintained
stability.
  Potomac Electric Power Co. says its 621,000 residential customers in the
District and
  suburban Maryland--about 15 percent to 20 percent of whom heat their homes
with
  electricity--will find their bills about 5.5 percent lower this winter,
assuming they use the
  same amount of electricity as last year. Across the Potomac River,Dominion
Virginia
  Power's customers in Northern Virginia are likely to see their bills stay
about the same.

  Much of the current energy pricing is out of consumers' hands, analysts
say, because the
  United States has chosen, to a large degree, to remain dependent on oil
pumped out of
  distant lands controlled by OPEC nations.

  The 11-member Organization of Petroleum Exporting Countries agreed last
weekend to
  increase its oil production by 800,000 barrels a day in hopes of pushing
the price down to
  $28 or so. Even so, oil prices hit a new 10-year high on Friday, closing at
$35.92 a barrel
  amid worries about tensions between Iraq and Kuwait. These are prices not
seen since the
  days of the military buildup before the Persian Gulf War in November 1990.

  Analysts say that 21 months ago, when oil was below $10 a barrel and
natural gas was at
  $2 per 1,000 cubic feet, drilling companies, many of which produce both
fuels, began to
  curtail their exploration as a result of dwindling revenue.

  The OPEC nations cut their production at the time to force prices
upward--and now they
  have more than tripled. Private exploration for more natural gas in the
United States, chiefly
  in the Gulf of Mexico and several southern and southwestern states, only
grew after drillers
  concluded that the demand was significant enough and they had sufficient
capital to look
  for more.

  Peggy Laramie, spokeswoman for the American Gas Association, the
natural-gas utilities'
  trade group, said the low price of gas at the time contributed to a feeling
by producers that
  there was plenty of supply, so they cut back on drilling for about nine
months, from August
  1998 to April 1999. Fewer than 400 rigs were drilling at the time, although
now that figure
  has topped 800.

  With little new natural gas exploration, the flow through the supply chain
slowed, of course,
  even as demand increased in the United States, Europe and Asia.

  The result was predictable: Higher natural-gas prices at the wellhead and,
over time, bigger
  bills for consumers. The $2 wellhead price has now risen to $5. Laramie
said the last time
  wellhead prices were this high was in 1985.

  As Verleger said, "Demand was growing. We didn't pick up the supply
and--whoops, there's
  a problem."

  In the Washington area, where perhaps 70 percent of all homeowners heat
with natural gas,
  Washington Gas Light Co. estimates that its residential customers will see
the typical
  monthly bill jump $26, to $112.50, in the November-to-April period, a 27
percent increase
  over last winter.

  Laramie said the gas utilities' trade group believes that with the renewed
exploration, natural
  gas prices "will be moderating by spring, but we don't want to
over-promise."

  The price of oil and its derivative products is expected to remain
volatile, depending on a
  host of factors, including demand by consuming nations, the severity of the
upcoming
  winter months after a string of three relatively mild winters, and how much
more oil OPEC
  nations might decide to produce if prices stay high.

  This mix of factors leaves the analysts, OPEC and government economists
using a lot of
  "ifs" and "buts" and "possibilities," but mentioning few certainties.

  OPEC President Ali Rodriguez predicted this past week that oil prices could
reach $40 a
  barrel this winter, even if only for a relatively short time.

  "Crude oil prices are very high and will remain very high throughout the
rest of the year,"
  said John Lichtblau, chairman of the Petroleum Industry Research
Foundation, which is
  funded by oil companies. In terms of gasoline, a shortage is unlikely, "but
prices will be
  high," he said. "It can go back to $1.40 a gallon because of more
production and lower
  crude prices. It won't start right now, maybe later this year or early next
year."

  But with heating oil, he said, an unusually cold winter in the Northeast
could bring about
  problems, given low inventories. "I don't see a shortage, but prices will
be very high."

  Verleger was less certain.

  "We do have a problem," he said. "I think we're going to see high prices
this winter for
  heating oil and natural gas. But I'm not certain about it. I'm not willing
to go out and say it's
  going to be awful."

  With oil prices at record levels, President Clinton last week came under
increasing
  pressure to tap the nation's Strategic Petroleum Reserve, nearly 570
million barrels of crude
  oil stashed at four sites in Louisiana and Texas.

  The reserve is intended for use in cases where the president determines
there is a national
  supply emergency. High prices alone do not qualify. The White House says
all options to
  combat the current low reserves of various fuels and high prices are under
consideration. In
  the past, however, the oil reserve has been tapped to combat mechanical
breakdowns in
  the oil industry's pipeline system or to trade lower-quality oil for a
better grade.

  "If the Strategic Petroleum Reserve is released, that would knock $15 a
barrel off the price,"
  Verleger said. "One piece of news like that and this [crude oil price] will
drop like a rock."

  At least for the winter months, electric utilities generally have found a
way around the high
  price of oil and natural gas that some of them must use during peak-demand
periods in the
  summer to generate electricity. They're able to focus their winter
generation on cheaper
  fuels--coal, nuclear and hydroelectric power.

  "That's cheaper fuel and fuel that's less subject to the volatility of the
world oil and world
  natural-gas markets," said Chuck Linderman, director of energy generation
and supply
  policy for the Edison trade group. "Generally we're in good shape on
supply."

  Contact: http://www.washingtonpost.com

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


Click on the message from icon below.


Please print and sign the attached Enron Corp. Risk Management Policy
Certificate of Compliance and fax directly to Veronica Valdez, fax # 713 646
2194. Due to certain regulatory audits of our trading businesses, we would
like to receive these by the end of this week.

Attached is a copy of the Certificate of Compliance, and the Enron Corp. Risk
Management Policy.

If you have any questions, please call me at (713) 853-0429, or Veronica
Valdez at (713) 853-1881.

Regards,
Cassandra Schultz
Market Risk Management


Let me know if you can pull this info together.

Thanks,

Eric
---------------------- Forwarded by Eric Bass/HOU/ECT on 06/26/2000 12:01 PM
---------------------------

	Enron North America Corp.

	From:  Eric Bass                           06/14/2000 10:56 AM

To: Leonard Tham/HOU/ECT@ECT
cc:
Subject: Generation

I am trying to pull together a report on the future of the gas market in
Texas.  I was wondering if you have a report that shows new generation coming
on in the next 3-4 years as well as a report that shows current generation.
The names of the companies building/owning the facilities is not important.
The most important data is MW capacity as well as type of generation (i.e.,
natural gas, coal, etc.)

Do you have this information?

Thanks,

Eric
x3-0977


is telas on sheppard a pretty cool joint to go to on fri?


---------------------- Forwarded by Eric Bass/HOU/ECT on 03/27/2001 01:35 PM ---------------------------
From:	Lesli Campbell/ENRON@enronXgate on 03/27/2001 12:34 PM
To:	Eric Bass/HOU/ECT@ECT
cc:
Subject:	Deal # QY8415

Please rebook to Duke Energy Trading and Marketing.

Thanks

Lesli


thanks for everything.  really 'ppreciate it, 'migo.   and please thank
karen, too.  also, would you tell her that prentice and i are willing and
able (we think) to help out in any way we can in putting the fireplace stuff
together----i.e., anything that doesn't require real skill, like sticking
tiles on the board.  just let us know.

Best,
Jeff

tah-mo


Guys, this is the real deal - we need to be ahead of this!!!

How are we making out on acquiring brownfield sites and formulating a
strategy?

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 07/10/2000
11:25 PM ---------------------------

Daniel Reck
07/10/2000 06:03 PM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Dow Jones Gas vs. Coal feature

FYI

=DJ Pricey Natural Gas May Alter New US Power Plant Options

  HOUSTON (Dow Jones)--High natural gas prices could slow the stampede to
build
as much as 140,000 megawatts of new electric generation across the U.S. and
give
new coal technology the boost it needs to compete economically with gas in
the
future.
  While market observers say the recent level of the price of natural gas -
above $4.00 per million British thermal unit since late May - may not be
sustainable, many expect gas to remain above $3.00/MMBtu for the foreseeable
future.
  The jump in gas prices is blamed on a number of factors, from increased
demand
to fuel new power plants to stagnant U.S. gas production and a lack of
available
gas reserves in storage.
  Pricier gas could create a variety of effects on future electric
generation:
from damping interest in building some new gas-fired plants to improving
economic prospects for investment to upgrade or build new coal-fired plants.

  Current gas prices are off the chart when compared to existing forecasts
from
the Energy Information Institute, part of the U.S. Department of Energy. EIA
projects the average U.S. wellhead price of gas will only rise to
$2.81/MMBtu by
2020, up from an average of $1.96/MMBtu in 1998, a jump of 43%. EIA predicts
coal prices will fall by 28% during the same period.
  Continued high natural gas prices may mean some proposed combined-cycle
gas
plants are never built, predicts a Midwest utility coal buyer. "It's awfully
hard for a combined-cycle gas plant to compete with coal. No way they can do
it
at these prices."
  However, a recent report from Raymond James and Associates Inc., concluded
that gas-fired generation will still be economical this summer even if gas
prices climb above $7.00/MMBtu because of high power prices in most regional
US
wholesale markets.

  Future Gas Supply Questioned; Coal Won't 'Go Away'

  "The gas turbine generation trend is not over, not by a long shot," said
the
Raymond James report. "Gas turbines use gas more efficiently than the
nation's
fleet of older, conventional boiler-driven generators that are fired by gas.
The
efficiency gains enabled by gas turbine generation will be more valuable as
gas
prices rise."
  While gas-fired plants are much cheaper and quicker to build than
traditional
coal-fired plants, many industry observers doubt that U.S. gas supply can
grow
to meet future demand, expected to reach 30 trillion cubic feet or more per
year
by 2020.
  "Coal will not go away," said Steve Bergstrom, president of Dynegy Inc.
(DYN).
"The coal industry will figure it out. There are too many jobs involved and
it's
too cheap."
  Bergstrom expects the rapidly expanding appetite for electricity across
the
U.S., which is growing 3% per year, will require additional generation from
many
fuel sources.
  "You'll see gas will be used in most of the additional generation for the
next
four to five years," he predicted. "In the latter half of the decade, you'll
see
other alternatives, like coal, come into play. Technology will create
changes."
  Even some independent power producers who are rushing to build gas-fired
power
plants in the U.S. admit the recent price of gas, if prolonged, is a threat.

  Bob Kelly, Calpine Corp.'s (CPN) senior vice president, said his firm's
fleet
of 40,000 MW of highly efficient natural gas plants to be in place by 2004
will
be profitable even with gas at $4.00/MMBtu, but he expects owners of
coal-fired
plants to make additional capital investment to keep those plants running as
well.
  "If gas stays $4.00 forever, you'll see more coal plants. It will make
sense
to put scrubbers on," said Kelly.

  Southern Co. Evaluating Coal-to-Gas Technology

  Gas has to compete on price with other available fuel, agreed Bob Carter,
chairman of Panda Energy International. Carter told Dow Jones Newswires late
last month that the idea of new coal-fired generation is "very possible."
  In fact, the jump in gas prices has given a boost to Southern Co.'s (SO)
effort to build a first-of-its-kind coal plant that seeks to be cost and
environmentally competitive with natural gas, said Charles H. Goodman,
Southern
Co.'s vice president for research and environmental affairs.
  Southern, with major DOE funding, recently announced a major advance in
its
effort to utilize coal in a more efficient and less polluting fashion to
generate electricity.
  The new process combines use of a "transport reactor," a device based on
existing technology used to "crack" crude oil into lighter products, to turn
coal into a gas which is then burned in a combustion turbine much like
natural
gas.
  In its gaseous form, coal can be cleaned of many of its pollutant-forming
impurities such as sulfur dioxide, nitrogen oxides and particulate matter,
Goodman said.
  The key to the technology is the ability to burn the coal gas in a highly
efficient gas turbine rather than burning it to make steam to turn a
turbine, he
added.
  The new technology can produce 100 megawatts of power with two-thirds less
coal than a traditional boiler-type coal generator, said Goodman.
  And higher natural gas prices could move this technology closer to a
reality.
  "The urgency of getting on with this (coal technology) is the forecast for
gas
prices," said Goodman. "At $2.50/MMBtu, it's a bigger stretch for this coal
plant (to compete with gas) than at $3.00 or $3.50/MMBtu."

  New Coal Technology May Also Address Emissions

  Goodman said Southern hopes to make a decision in the second half of 2001
on
whether to build a commercial power plant with the coal gasification
technology
now being tested at Southern's Power Systems Development Facility in
Wilsonville, Ala.
  If gas prices stay high or remain volatile, Goodman said that will
influence
the timing, size and other variables associated with building the first
full-size plant to burn coal gas in this manner.
  "The $64 question is the price of gas," said Goodman. If gas is cheap and
plentiful, utilities will have a harder time investing in coal technology,
he
said.
  But because the U.S. has abundant coal resources, Goodman predicts the
coal-to-gas technology could eventually be used not only for new plants but
to
repower existing coal plants in a way that addresses air quality concern.
  Other partners in the Power Systems Development Facility include the
Electric
Power Research Institute, Foster Wheeler Corp. (FWC), Halliburton's Kellogg
Brown & Root (HAL), Peabody Group, Combustion Power Corp. and
Siemens-Westinghouse Power.

  -By Eileen O'Grady, Dow Jones Newswires; 713-547-9213;
eileen.ogrady@dowjones.com <mailto:eileen.ogrady@dowjones.com>

  (END) DOW JONES NEWS  07-10-00

  04:22 PM

- - 04 22 PM EDT 07-10-00
:TICKER: CPN DYN FWC HAL SO
:SUBJECT: CNHV EUTL OILO OILE CA GA NJ TX COMM INDG
Copyright (c) 2000 Dow Jones and Company, Inc.
Received by NewsEDGE/LAN: 7/10/00 3:27 PM


Hi, Diomedes.  I just tried to reach you on your cell phone (713.539.6731)
for Jeff.  Could you please give him a call at your earliest convenience?
713.853.6894 is his number.  Thanks, SRS


ENVIRONMENTAL STRATEGIES

Legislation

Pipeline Safety - The Senate Pipeline Safety Bill (McCain bill, S. 2438) was
defeated in the House of Representatives on Tuesday 10/10.   The bill was
brought up under "suspension of the rules" in order to avoid possible
amendments, a procedure which required a two-thirds vote for passage.  The
bill fell short by 28 votes, with 232 voting for, and 158 against.   Although
the McCain legislation imposed a number of new requirements on pipelines, the
pipeline industry supported S. 2438 as the best achievable legislation, given
recent accidents and the possible political climate next year.  The
legislation was defeated in a last minute effort by House Democrats, on more
political than substantive grounds.   With only a few days remaining in the
congressional session, the debate will now turn to efforts to possibly attach
some form of legislation to a fast-moving appropriations bill.   Industry can
not likely support movement of any legislation other than the Senate bill --
anything suggested by House Democrats at this point to make the legislation
stronger would likely be "deal breakers" for industry.  Jeff Keeler will
remain active in the legislative process until the issue is resolved.

MTBE - Senate MTBE legislation (S. 2962) which passed the Environment
Committee several weeks ago is not expected to move on a stand-alone basis,
but we are watching to see if efforts to move all or portions of the bill
(such as a simple MTBE ban) will take place in the various appropriations
efforts.  While we have commitments from various House and Senate leaders
that an anti-MTBE measure will not be included, the powerful ethanol forces
are working hard to find a way to pass legislation this year.  We have
avoided inclusion in Agriculture and VA-HUD (EPA) appropriations bills so far
-- which were the most likely targets for inclusion.   We are prepared to
counter any last minute anti-MTBE amendments with amendments providing
transition funding for MTBE producers, which a number of Senators, including
ethanol proponents like Tom Daschle, have indicated they would not oppose.
It is most likely that action on this legislation will take place in the next
Congress.

Competitive Intelligence

Climate Change - Jeff Keeler continues to participate in activities leading
up to the COP 6 meeting in November in the Hague, The Netherlands.   Jeff is
coordinating with EES, ENA, EWC and others within Enron in order to provide
the best coverage for these business units during the events before and
during the COP 6 meeting.   At the Hague meeting, Enron will participate in
activities of the Business Council for Sustainable Energy, Pew Center on
Climate Change, INGAA, and Emissions Marketers Association.   In particular,
Jeff is working with several organizations on efforts to develop a response
to recent U.S. proposals on Clean Development Mechanism "baselines" that
could potentially disadvantage gas, renewables, and energy efficiency.  On
October 20, Jeff will be speaking at the Forbes Environmental Superconference
in Washington, D.C. on a panel addressing "Business Opportunities Resulting
from Climate Control".  The panel includes Jeff Seabright from Texaco and Dan
Reicher from DOE.

Landfill Gas projects - Stacey Bolton has been working with ENA East
Origination on regulations, incentive funding, and tax issues affecting
potential landfill gas projects.

Green Power Marketing - Stacey Bolton attended the Mid-atlantic power
marketers meeting in order to receive information on the latest developments
that could affect EES, ENA, NPC power marketing efforts.

Clean Air Act (Multi-pollutant legislation) - Jeff attended a meeting with
Ken Lay at Resources for the Future to discuss future legislative options for
pollution control in the electric utility sector, including a
"multi-pollutant" strategy (for NOx, SO2, Mercury, CO2).   This will likely
be the predominant Clean Air Act issue addressed in the next Congress.  Coal
utilities and environmental groups have been meeting to develop some initial
recommendations for the legislation, and Jeff and consultant Joel Bluestien
have organized a meeting with environmental groups on 10/25 to ensure that
gas, renewables, energy efficiency are included as solutions in any trading
or compliance programs.

Clean Air Act (California offsets) -  Mary Schoen is working with ENA West
Origination and EGM Emissions Trading on strategies for finding emissions
offsets for Enron power projects planned in several air quality districts in
California.  Offsets are scarce, due to hoarding by PGE and So. Cal Edison
from their utility days.   Mary is working on solutions including offsets
generated by energy efficiency and diesel engine retrofits on mobile sources.

Clean Air Act (NOx State Implementation Plans) -  Mary continues to negotiate
with TVA and the TN air pollution control board over the allocation of
allowances for Enron facilities in Tennessee.   TVA has agreed that Enron
should be granted 500 tons of NOx (our permitted levels), but there are still
details being worked out in the amendment to Tennessee's SIP which Mary is
attending to so that our deal remains in tact.

Power Quality - Jeff and Mary will be working with EES' new "power quality"
group to provide regulatory intelligence on environmental issues that affect
the power quality, reliability and distributed generation markets, including
opportunities for federal and state financial incentives.   Jeff is setting
up meetings with DOE and EPA on October 19 for EES in Washington, D.C.

Regulatory Compliance:

Environmental Disclosure/Labeling - Stacey Bolton is working w/ EES on two
disclosure issues involving their quarterly label in California and
Massachusetts.

Renewable/Disclosure Credit Trading - Stacey Bolton worked out a potentially
problematic issue with environmental groups in New England that could have
prevented the credit trading information system from moving forward in NEPool.

ASSET OPERATIONS

Administrative

EH&S Manager, South America - Edgar Zuleta will now be responsible for EH&S
activities in S. America.  Edgar completed the Smith System Trainer course
and received Certification.

OEC/ North America

Military Base Projects (Texas, Air Force and Navy) - Scott Watson contacted
Allen Rose (Black & Veatch) to ensure environmental issue costs such as
asbestos abatement, lead paint blasting and transformers (PCB,s) were all
addressed in the bid package.

Enron Corporation,s Safety Management System - Scott Watson met with Gary
Allen ETS Safety to discuss the integration of ETS computer based safety
audit system into the overall corporate project.  Scott is supervising the
completion of this project.

Enron,s petition to EPA to waive NSPS stack testing at Wheatland power - Gus
Eghneim received official approval from the EPA of our petition to waive NSPS
stack testing at Wheatland power. This petition saved Enron approximately
$500,000 as per EES OEC's Mark Dobler,s assessment.

Enron,s petition to MDEQ - Gus Eghneim submitted a petition to the
Mississippi Air pollution Control department to waive stack testing
requirements currently mandated in the new source review permits of Caledonia
and New Albany Power.

Permit Revisions for Doyle Power - Gus Eghneim is currently working with the
Georgia department of environmental Quality to revise the new source review
permit for Doyle power to relax the opacity requirement and make the permit
consistent with current plant operations. Georgia DEQ agreed to increase the
opacity limit from 20% to 40% on gas turbines.

State Inspection at New Albany Power - New Albany power was subject to a
state inspection on October 2, 2000.  No noncompliance issues were identified.

EPA,s acid rain reports for the 2000 peakers - Gus Eghneim and Ramiro Garcia
are working with Lincoln, Gleason, and Doyle, to ensure submittal of the
first acid rain EDR reports to the EPA by October 30, 2000.

Asia/India

Marianas Power Plant, Guam - Bal Wong submitted the US EPA PSD Permit,Fuel
Switching Protocol  3rd Quarter 2000 reporting.

Marianas,Batangas Power Corporation and Subic Power Corporation 1999
Greenhouse Gas

Emission Data Report - Bal Wong responded to clarification required by Arthur
D Little.

SK Enron - Translation of Enron EH&S Guidelines into Korean language has been
initiated by Bal Wong.

Europe

Site visit to Marmara, Turkey -  Reviewed operations and Quality Assurance
Audit Report.  Working with plant management to determine what assistance is
required and provide support to operations in implementation of EH&S
Guidelines.

Acquisition of MG plc Metal trading company - Alan Stringer conducted EH&S
reviews of European owned facilities and  identified required improvements in
HSE culture.  US and Indonesia facilities will be audited for safety and
environmental issues in mid-Oct/2000.  Limited baseline assessments may be
required in the UK and Rotterdam.

Acquisition of Metal Recycling Facility in Essen and Nuremberg, Germany -
Essen to be leased and recommended baseline investigation at Essen and at
Nuremberg to London Engineering Team who are managing this project.
Supporting the UK engineering team in the development of SPC plans to protect
indemnities and warranties.

New Power Project in the UK - Alan Stringer is working  with the Engineering
Team to determine level of support and review required, including building
relationships with project stakeholders.

Regulatory Database - Alan  Stringer is developing current legislation
database for Turkey and Poland power plants.  This database will summarize
regulations these plants  should be complying with.

CALME

San Juan Gas (SJG) Remediation - The Puerto Rico EQB sent SJG a letter
addressing issues related to our proposed waste characterization plan. Bill
Curra and ThermoRetec developed various technical approaches to address
concerns from the PR EQB.    A meeting with PR EQB will be set up  in the
next couple of weeks to discuss the issues.

Panama, San Francisco Site  -  Bill Curra will travel to Panama next week to
coordinate the remediation work of the site under a Type I EIA established in
the Panamian regulations.  The project is expected to take two to three weeks.

Fire Protection at BLM Plant in Colon - There is no reliable fire protection
system for Units 2,3,4.  BLM personnel will provide design guidelines to
Houston EH&S Department and  to fire protection consultants for review.

BLM Plant in Colon - Secondary containment around fuel storage tanks is
inadequate to prevent a spill from the storage tank and existing controls to
prevent hydrocarbons from entering the stormwater channels is not functioning
allowing hydrocarbons to travel to the ocean.  Enron EHS will review
preliminary design and provide recommendations to BLM.

Regulatory Technical Analysis

Natural Gas Star Workshop - Marc Phillips is attending the Natural Gas Star
Workshop on October 12 and 13.

OSHA Stakeholder Meeting - Russell Tucker attended and addressed the record
during the OSHA Stakeholder meeting on Confined Spaces in Construction, a
proposed rule in the design stage coming under the 29 CFR, Part 1926
Construction Standards. Current format for the new regulation is to mirror
the existing General Industry standard on Permit Required Confined Space
contained in 29 CFR 1910.146. Statements centred on the areas of concern in
amended 1910.146 that resulted in API filing a still unsettled suit in the
D.C. Circuit Court, which reflect the same concerns for all Enron companies
performing permit required confined space tasks.

TXOGA Pipeline Environmental Committee - Jim Peterson is preparing
information on water and waste rulemakings for use at the TXOGA Pipeline
Environmental Committee Meeting next week.

ENVIRONMENTAL COMPLIANCE

Greenfield Capital Projects

Cuiaba II -  Joe Kolb reports that there is some confusion over the amount of
gas needed at Cuiaba.  As a result, an additional compressor station may be
required.  Another option is to install a booster station at the power plant
until the volume in the pipeline increases enough to justify a permanent
station.

Cuiaba I Pipeline - Joe Kolb's trip was postponed by one week to October 28 -
November 8 as the request of GOB management.

Lagos EPP - Joe Kolb has nothing new to report.

RioGen - Joe Kolb reports that indeed the proposed pipeline route that will
serve RioGen will need some rerouting because a portion of it is under a
now-paved road and through a congested area.  The RioGen EIA includes the CEG
pipeline route and it mentions going through a Class III area.   He does not
know yet why this problem was not discovered earlier in the project and will
confer with Cristiane Ronza (Enron SA) on revisions to the EIA.

Eletrobolt PP (Brazil) - Joe Kolb has nothing new to report.

Metgas Pipeline - Joe Kolb reports that the new schedule has a target of a
NTP in Sept. '01 and begin construction in Dec. '01.  The main problem is
acquiring all of the right-of-way.  The Ministry of Forestry (MOF) has made
it clear that we will not get permission to cross any forestry lands unless
GAIL (Gas India Limited) is made a partner.  The EIA review panel is expected
to constituted in October along with a panel to run the public hearing.
Expect hearing to be in late November or early December.

Venezuelan LNG - Joe Kolb has nothing new to report.

Transredes Looping  - Joe Kolb made contact with Tony Henshaw (new VP of EH&S
for Transredes) who will arrange for updates on the Looping project while Joe
is in Bolivia in early November.

Project Dolphin - Joe Kolb had nothing new to report.

Powertel - Joe Kolb has made contact with Annat Jain (Enron India) seeking to
understand what environmental planning, studies, and clearances were done for
this project and what role Enron plays in the Joint Venture.  Joe's efforts
to arrange a  meeting with Mr. Jain during his time in Houston this week were
to no avail.  Joe will continue to seek the desired information between now
and Mr. Jain's next visit to Houston, which is in two weeks.

Acquisitions

Privatenel (Nicaragua) - Don Stevens has been informed that Enron submitted a
$0 bid for the two Gencos on Oct. 10.  The other two bidders (Coastal and
Amfels) did the same thing.  ENEL declared void the privatization of
thermoelectric generators Geosa (115MW) and Gecsa (121MW).  Now the burden of
improving the deal is firmly in the hands of the government and we fully
expect our suggestions to be given full consideration and in large part to be
implemented.  As there is intense pressure on Nicaragua from the World Bank,
to sell these Gencos, we believe these modifications are already being
carried-out and that there will be a new bid date set shortly.

Project ISAGEN (Colombia) - Sandy Verma has informed Don Stevens that the
project is currently on hold.

Project Crane (Quebec, Canada and Port Angeles, Washington) - Don Stevens has
been informed that we are still moving ahead to submit a non-binding bid on
Oct. 16 for only the Quebec City facility. We may be required to bid on both
assets but have no interest in retaining the Port Angeles mill. The goal is
to make our bid attractive enough to move to the next round and gain access
to more detailed data and information in phase II due diligence.

Project INGA (California and Pennsylvania) - Don Stevens spoke with Bill
Keeney regarding EPA Section 112 issues.  EPA has begun preliminary data
acquisition regarding mercury emissions from coal fired utilities in order to
draft proposed regulation.  Bill Keeney is attempting to understand the risks
involved should the proposed regulations become final in the near term.  At
the request of Chip Schneider (RAC), Susan Worthen provided an environmental
risk summary for the DASH .

Project Dragon (Southeast Asia) - Don Stevens has been informed that we have
terminated any further efforts on this transaction.

Termoflores (Colombia) - Don Stevens has not heard any news this week on the
project status.  Closing date was last targeting for November.

Military Base Privatization (Texas AFB) - Don Stevens assisted Charlie
Thompson (EES) in a meeting with Michael Tribolet (Underwriting) regarding
the issue of need for environmental insurance.  Don, Susan Worthen, and Frank
Smith have all conferred that potential environmental liabilities can be
identified through existing baselines and further clarified by limited
sampling near those utilities that EES will take over.

Military Base Privatization (Maxwell AFB/Gunter Annex) - Don Stevens has not
heard any news this week on the project status.

CWT Thermo-Depolymerization - Don Stevens has attempted to contact Bruce
Stram to discuss environmental issues.  Bruce is out of the office until Oct.
16.  Don Stevens discussed various issues with Gene O'Gorman regarding air
emissions from the proposed project.  Don and Susan Worthen will meet with
Bruce upon his return next week.

Project Delta - ENA is investigating the possibility of buying underground
storage facilities under various stages of development  in the U.S. with the
potential of turning over the asset before they become operational.  As a
follow-up to a meeting last week with John Allario (ENA), Don Stevens is
reviewing Dames & Moore's Preliminary Environmental Reviews of four potential
underground natural gas storage well locations.  The proposed locations are
in the states of Washington, Utah and New Mexico.

Combined Cycle Plant (Brooklyn, NY) - Don Stevens has been contacted by Wayne
Mays regarding permit timing for the installation of 2 each 500,000 lb/hr
natural gas fired boilers at an existing combined cycle plant in Brooklyn,
NY.  The project is to install two auxiliary boilers so that during peak
hours all capacity can be shifted to electrical generation.  The current
target date for installation of the boilers is June 2001.  Enron would be a
partner in the plant.

HVAC Company - At the behest of Dave Nutt, Kyle Roblee (EES) contacted Susan
Worthen about potential due diligence support on a HVAC company EES is
reviewing.  Originally, Pilko Associates was slated to perform the assessment
at an extremely high cost.  Kyle has not returned any e-mails or voicemails;
therefore, little else is known.

Dept. Projects

Quantitative Risk Module - Don Stevens received ThermoRetec's 'red-lined'
Agreement for Project Services and delivered copies to Lanie Borgman.
Failure to secure a contract for the project within the next week will affect
the current completion schedule.

Environmental Professional Services Agreements - Susan Worthen sent Global
Strategic Sourcing's Contracts group  the environmental professional service
agreements obtained from ETS and EE&CC.  She was not successful in obtaining
such agreements from ENA or EES.  This initiative is the result of Susan's
experience that rate structures are not consistent among the business units
and the desire to streamline the system.

New Hire Orientation - The EHS/Social Responsibility booth will be ready for
Monday, October 16.  Orientation is every Monday.  Various documents have
been assembled for participants to take.

e-TV - Susan Worthen is coordinating the production of corporate
responsibility videos to be featured on e-TV.  Kelly Kimberly and Mike
Terraso will invite executives to participate.

Annual Report - The Annual Report has been distributed internally to selected
recipients and senior management.

Intranet Site - The deadline for the content on the EHS web site was on
October 11th. There was good participation in information provided for the
site, however, we are still lacking information/content in some areas.  Once
the IT group receives all documents, development will begin on the site. The
web site is still expected to be functional by November 15th regardless of
the status of missing content.  Two third party vendors, CPI and ELR, have
submitted their proposals/contracts and they are currently being scrutinized
by the legal department. CPI and ELR will provide EHS legislative and
regulatory information for the United States on the EHS web site.

Globalization - Gavin Dillingham completed research regarding whether Enron
should develop a policy or statement concerning free trade and
globalization.  His research indicates that we should .  Lauren Goldblatt,
Kelly Kimberly, Mike Terraso, and Susan Worthen will meet the week of the
23rd to determine next steps.

Volunteer Activities/Community Relation

Buffalo Bayou Challenge - Gavin Dillingham is currently working with Joe Kolb
on developing the Buffalo Bayou Challenge. The proposal will be discussed
with Mike Terraso and then a follow-up with Community Relations.

Other

Clean Energy Incubator - Gavin Dillingham is researching the possibility of
Enron developing a clean energy technology incubator and will report his
findings to Mike and Susan.

Susan Worthen
Director
Environmental Compliance, Enron Corp
713/646-6579  713/345-6164 fax
3AC 1525


Please send regrets
----- Forwarded by Steven J Kean/NA/Enron on 09/27/2000 05:18 PM -----

	"Payne, Jeanne" <payne@bipac.org>
	09/26/2000 03:26 PM

		 To: "'Kean, Steven J. (Enron)'" <skean@enron.com>
		 cc:
		 Subject:

SK - THIS IS THE SAME DAYS AS THE MANAGEMENT CONFERENCE.
SHOULD I GO AHEAD AND LET JEANNE PAYNE KNOW THAT YOU WILL NOT BE ATTENDING?
mm

Hello Mr. Kean

Are you planning to attend the Board Meeting in Naples, Florida, November
15-17.  I just want to remind you that our block of hotel rooms will be
released Friday, October 13.

Jeanne Payne
payne@bipac.org


Please put together your vacation schedules for the rest of the year and forward to Heidi by 10/25/01.

Heidi, please organize these into one summary and let me see them before they go to Barry.
 -----Original Message-----
From: 	Presas, Jessica
Sent:	Thursday, October 18, 2001 12:03 PM
To:	Fuller, Dave; Whitt, Mark; Harrison, Tyrell; Lucci, Paul T.; Staab, Theresa
Cc:	DuBose, Heidi
Subject:	FW: Vacaction schedules

Please let me know what days you plan on taking off.

Thanks,
Jessica

 -----Original Message-----
From: 	Tycholiz, Barry
Sent:	Wednesday, October 17, 2001 1:19 PM
To:	Presas, Jessica
Subject:	Vacaction schedules

Pls coordinate a vacation schedule planner for me for all of the staff from now until the end of the year ( including Jan ).  Pls include Denver

BT.


Thanks, I needed that.

-----Original Message-----
From: Giambrone, Laura
Sent: Friday, January 11, 2002 2:43 PM
To: Carpenter, Nancy; Lokey, Teb; 'les.ellsworth@exxon.com'
Subject: FW: How To Tell Which Cat Ate Your Drugs

-----Original Message-----
From: Garcia, Ava
Sent: Friday, January 11, 2002 12:05 PM
To: 'garysmith@penreco.com'; 'rebeccataylor@penreco.com';
'paularobicheaux@penreco.com'; Brown, Sharon; Dasilva, Esther; Carrillo,
Alma; Hibbard, Scott; Minter, Tracy; McEvoy, Christine; Giambrone, Laura
Subject: FW: How To Tell Which Cat Ate Your Drugs

This is cute


I have extended #254839.

Clem Cernosek
12/22/2000 11:11 AM
To: Daren J Farmer/HOU/ECT@ECT
cc: Tom Acton/Corp/Enron@ENRON
Subject: HPL Meter SOUTHERN UNION - LOCKHART

Daren:

On 5/31/2000 the above meter has recorded flow of 16 Mmbtus from HPL's
pipeline.   Deal #254839 was at the meter prior, but it expired on 5/21/00.
Currently, the volume is booked to HPL Strangers Gas Contract.  Logistics
needs either (1) have Deal #254839 extended, (2) new deal, or (3) approval to
writeoff these volumes to Unaccounted for Gas.  (Please print, sign, and
return original to Clem Cernosek).

 __________________________________________________________
 Deal/Deal Ticket#/Customer (Seller/Buyer)

    OR

 ______________________________________________________
 Approval to Writeoff the volumes to Unaccounted for Gas Loss

Thanks, Clem


Attached is the TW weekly as of  February 9, 2001. Please call me at 713-853-1480 if you have any questions or comments.

Palu


Shirley,

I have no clue. I shall ignore it.

Vince

Shirley Crenshaw
12/01/2000 01:54 PM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Confirmation: Weekly Schedule, December 4-7, 2000

Vince:

Do you know about these meeting?  Do you want to send someone in your
place?

Shirley

---------------------- Forwarded by Shirley Crenshaw/HOU/ECT on 12/01/2000
01:50 PM ---------------------------
From: Paulett Smith@EES on 12/01/2000 01:00 PM
To: Breakthrough Initiative (DOGS), Breaktkhrough Initiative (CATS),
Breakthrough Initiative (RISK), Breaktkhrough Initiative (LEADERS)
cc: Breakthrough Initiative (CATS) Adm, Breakthrough Initiative (Leaders)
Adm, Breakthrough Initiative (Risk) Adm
Subject: Confirmation: Weekly Schedule, December 4-7, 2000

Please note, the CAT/DOG meeting time and location has changed on Wednesday,
December 6, 2000 to:

7:30-11:30am 2AC 12th Floor, Forum


---------------------- Forwarded by Daren J Farmer/HOU/ECT on 06/05/2000
11:51 AM ---------------------------

	From:  Yvette G Connevey @ ENRON                           06/05/2000 11:22 AM

To: Ami Chokshi/Corp/Enron@ENRON, Julie Meyers/HOU/ECT@ECT, Michael
Walters/HOU/ECT@ECT, O'Neal D Winfree/HOU/ECT@ECT, Bryan Hull/HOU/ECT@ECT,
David Baumbach/HOU/ECT@ECT, Jody Crook/Corp/Enron@ENRON, Tom
Acton/Corp/Enron@ENRON, Mark McCoy/Corp/Enron@Enron, Carlos J
Rodriguez/HOU/ECT@ECT, Stella L Morris/HOU/ECT@ECT, Aimee Lannou/HOU/ECT@ECT,
George Grant/HOU/ECT@ECT, Sabrae Zajac/HOU/ECT@ECT, Susan D
Trevino/HOU/ECT@ECT, Robert E Lloyd/HOU/ECT@ECT, Clem Cernosek/HOU/ECT@ECT,
Jackie Young/HOU/ECT@ECT, Charlotte Hawkins/HOU/ECT@ECT, Robert
Cotten/HOU/ECT@ECT, Ricky Ellis/NA/Enron@Enron, Eddie Janzen/NA/Enron@Enron,
Angelique Woods/NA/Enron@Enron
cc: Mary Comello/Corp/Enron@Enron, Kim Weldon/Corp/Enron@Enron, Lisa
Csikos/HOU/ECT@ECT, Daren J Farmer/HOU/ECT@ECT, Mary M Smith/HOU/ECT@ECT,
Rita Wynne/HOU/ECT@ECT, Steve Venturatos/HOU/ECT@ECT, Pat
Clynes/Corp/Enron@ENRON, Michael Eiben/HOU/ECT@ECT
Subject:

Kim, Mary,
Please forward this on to your people.

I hope you are ready to BOWL!!!!  Tomorrow we will meet in the lobby at 2:45
and begin to load our buses and depart for the bowling alley.  Their will be
two buses departing at 2:45 and at 3:00 just to make sure we get any
stragglers.

As soon as we arrive you will join your team members (your teams have already
been chosen and there is no swapping, negotiating or shuffling allowed).  You
will be notified tomorrow as we depart who is on your team and their will be
signs at the bowling alley marking the lanes for each team.

Our plan is to bowl three games or until time allows.  At 5:30 we will gather
for prizes and awards and depart at 6:00.

Please see your admin today for your bowling shirt.  We highly encourage you
to wear it tomorrow, either with jeans or khakis, whichever you prefer.  If
you don't wear your shirt, you run the risk of being ridiculed by your
co-workers, sticking out like a sore thumb when you bowl, or being left out
of any future reindeer games (just teasing).

If you have any questions please see your admin.

Thank you!
Yvette


Start Date: 12/23/01; HourAhead hour: 1;  HourAhead schedule download failed. Manual intervention required.


Can you tell me to whom we send the originals?

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/26/2001 07:53
AM ---------------------------
From: Catherine Clark/ENRON@enronXgate on 04/25/2001 05:36 PM
To: Kay Mann/Corp/Enron@Enron
cc: Stephen Thome/HOU/ECT@ECT, Jake Thomas/HOU/ECT@ECT, Roseann
Engeldorf/ENRON@enronXgate

Subject: RE: Delta docs

Kay,
The deal team needs to sign and send out the notices (for Fountain Valley
they had V&E do all that).  The notice needs to be faxed to:
Elizabeth Burnett (phone 212-325-9943, fax 212-325-8304) - she is replacing
Shazia Sarker who (we just found out) is leaving CSFB on Friday.  Shazia's
name and number need to be changed throughout the documents.  V&E also faxed
copies of the notices to: Karl Wiemer at Milbank (phone 212-530-5209, fax
212-822-5209), Lisa, Rose and myself.

The Assignment and Assumption Agreement needs to be signed by the deal team
for ENA, then sent to Karl Wiemer, Ann Roberts, Jose Mercado and Doneene
Damon for execution by E-Next Generation LLC (see addresses below).  The Bill
of Sale also needs to be sent to Karl, Ann, Jose, and Doneene for execution
by E-Next.

The second notice is called the "Prepayment Notice" and includes the amount
to be funded 2 days later.  I took the V&E form used for Fountain Valley and
removed names and amounts, however I believe Rose had some additional
comments, so let me talk to her before attaching a sample Prepayment Notice.
I'll get back to you shortly.  Thanks.
-Catherine
x3-9943

Ann Roberts
Wilmington Trust
520 Madison Ave.
33rd Floor
New York, NY 10022
Phone: 212-415-0545
Fax: 212-415-0513
aroberts@wilmingtontrust.com

Doneene Damon
Richards, Layton & Finger, P.A.
One Rodney Square
920 King Street
Wilmington, DE 19801
Phone: 302-651-7526
Fax: 302-658-6548
damon@rlf.com

Jose Mercado
Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, DE 19890
Phone: 302-651-8631
Fax: 302-651-8882
jmercado@wilmingtontrust.com

 -----Original Message-----
From:  Mann, Kay
Sent: Wednesday, April 25, 2001 4:52 PM
To: Clark, Catherine
Cc: Thome, Stephen; Thomas, Jake; Engeldorf, Roseann
Subject: Delta docs

Hi Catherine,

I don't remember who actually gives the notice, but in anticipation of the
funding of the escrow tomorrow, here are the docs.

 << File: Final Delta Turbine Sale Turbopark Notice of Purchase.doc >>  <<
File: Final Delta Turbine Sale Turbopark Assignment & Assumption Agmt with GE
ack.DOC >>  << File: Final Delta Turbine Sale Turbopark Bill of Sale.DOC >>

I understand there is also a two day notice.  I don't believe I've seen a
form for that one yet.

Who should send this out tomorrow after we get the fed ref?

Thanks,

Kay


Please join me today in Bill Cordes' office for a quick Team meeting.  Topics
for discussion include:

Williams / Kern River open season
Southern Trails P/L
El Paso / All American P/L
Impact to TW markets of all the above

Timing on IOS for 14,000/d in 2001
Fuel hedges for 2001


-----Original Message-----
From: 	Hanagriff, Richard
Sent:	Thursday, March 14, 2002 5:07 PM
To:	Schoolcraft, Darrell; Minter, Tracy; Mulligan, Amy; Buchanan, John; Scott, Donna; Hernandez, Bert; Ward, Linda; Giambrone, Laura; Lindberg, Lorraine; Lokay, Michelle; McConnell, Mark; Watson, Kimberly; Geaccone, Tracy; Y'barbo, Paul; Ratner, Michael; Blair, Lynn; Dietz, Rick; Fancler, Dan; Moseley, Debbie
Subject:	TW imbalance summary

Line pack was increased by an estimated 334,095 mmbtus due to imbalances -  see the monthly tab for details by operator


Start Date: 1/17/02; HourAhead hour: 24;  HourAhead schedule download failed. Manual intervention required.

    LOG MESSAGES:

PARSING FILE -->> O:\Portland\WestDesk\California Scheduling\ISO Final Schedules\2002011724.txt
Error: dbCaps97Data: Cannot perform this operation on a closed database
!!!Unknown database.
Alias: dbCaps97Data
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!!!Unknown database.
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!!!Unknown database.
Alias: dbCaps97Data
Error: dbCaps97Data: Cannot perform this operation on a closed database


would you do me a favor and send me Ken Kaspar's e-mail add at Dow.

thanks!!!

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


No, you're correct.  In the spreadsheet, there were three sorts of "items":
discontinued ops, unusual items, extraordinary items, and accounting
changes.  The sale of the assets came about in the attempt to "trim the fat"
(or manage earnings, you make the call).  Here's the line item from my
spreadsheet:

It came right after the entries for the "unusual loss from the government
ban."  I included it with the "unusual" items (right after discontinued ops
and right before extraordinary items.  Big question is, is it included
already.  I assumed not, since (though it's confusing), the problem makes is
sound like none of the additional "agenda items" were accounted for.  I don't
think it's a huge deal, though.  The questions left a lot of room for
ambiguity.

Best,
Jeff

	Dylan Windham <dwindham@uclink4.berkeley.edu>
	11/20/2000 02:16 PM

		 To: Jeff.Dasovich@enron.com
		 cc:
		 Subject: Re: This Week's case

Maybe I am confused.  I thought that the sale of the assets was separate
from the discontinued operations of the Feed division.  Unfortuneatly I do
not have my book here to check.

Dylan

At 10:30 AM 11/20/2000 -0600, you wrote:

>See attached.  Just a couple of typos corrected in strike-out-underline.
>Question:  Thought I'd included the gain on sale as "unusual" as opposed to
>"extraordinary."  If we leave it out, are we assuming it's already included
>in the $9.5MM?  If so, we might want to include a note at the bottom of the
>spreadsheet like, $9.5 MM figure includes $750,000 gain on sale of certain
>assets completed in 1995."  Or am I just totally out lunch on this one.
>
>Thanks.  This one was a little messy.  You did a great job of pulling it
>together.
>
>Best,
>Jeff
>
>(See attached file: Agrofeed Final Version 1120.doc)


<http://isc.dev.corp.enron.com/surveyVPN/images/index_r1_c1_r1_c1.gif>
Now that you have access to the following applications without requiring VPN access...

Outlook Web Access (email and calendar)

PEP

XMS (Expense Reporting application)

And, COMING SOON...
eHROnline (year-end)
Benefits Election (Oct. 29, 2001)
Electronic Pay Stubs (year-end), and
Much More,

through the ClickAtHome Portal and the Internet, do you still believe you need remote access through VPN from home to Enron networks (must have a valid business reason with supervisor approval and a monthly cost)?

 YES NO NOT SURE
Please answer this survey from your computer at work, not via Outlook Web Access.


---------------------- Forwarded by Rhonda L Denton/HOU/ECT on 12/18/2000
06:15 PM ---------------------------

Rhonda L Denton
11/08/2000 05:21 PM
To: John M Forney/HOU/ECT@ECT, Valarie Sabo/PDX/ECT@ECT, Fran
Chang/PDX/ECT@ECT
cc:
Subject: Arizona Public Service Company

I will add Valarie and Fran to my distribution.  John is already on here.
---------------------- Forwarded by Rhonda L Denton/HOU/ECT on 11/08/2000
05:23 PM ---------------------------

Rhonda L Denton
10/10/2000 09:19 AM
To: Tim Belden/HOU/ECT@ECT, Dana Davis/HOU/ECT@ECT, Genia
FitzGerald/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Melissa Ann
Murphy/HOU/ECT@ECT, Kyle Schultz/HOU/ECT@ECT, Kim S Theriot/HOU/ECT@ECT,
Christi L Nicolay/HOU/ECT@ECT, Leslie Reeves/HOU/ECT@ECT, Gretchen
Lotz/HOU/ECT@ECT, Dean Laurent/HOU/ECT@ECT, John D Suarez/HOU/ECT@ECT, Cara
Semperger/PDX/ECT@ECT, Christian Yoder/HOU/ECT@ECT, Jan M King/HOU/ECT@ECT,
Mike Swerzbin/HOU/ECT@ECT, Mary Hain/HOU/ECT@ECT, Michael
Etringer/HOU/ECT@ECT, John Malowney/HOU/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT,
Laura Jones/HOU/ECT@ECT, Cyril Price/HOU/ECT@ECT, James E
Terrell/HOU/ECT@ECT, Corry Bentley/HOU/ECT@ECT, Matt Lorenz/HOU/ECT@ECT,
Thresa A Allen/HOU/ECT@ECT, David Portz/HOU/ECT@ECT, Sharen
Cason/HOU/ECT@ECT, Veronica Gonzalez/HOU/ECT@ECT, Kimberly Allen/HOU/ECT@ECT,
William S Bradford/HOU/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT, Christopher
Smith/HOU/ECT@ECT, Brant Reves/HOU/ECT@ECT, Russell Diamond/HOU/ECT@ECT, John
Suttle/HOU/ECT@ECT, Tanya Rohauer/HOU/ECT@ECT, Rod Nelson/HOU/ECT@ECT,
Stephanie Piwetz/HOU/ECT@ECT, Tom Moran/HOU/ECT@ECT, Leslie
Hansen/HOU/ECT@ECT, Russell T Kelley/HOU/ECT@ECT, Stewart Rosman/HOU/ECT@ECT,
Holli Krebs/HOU/ECT@ECT, Paul Choi/SF/ECT@ECT, Chris H Foster/HOU/ECT@ECT,
Sean Crandall/PDX/ECT@ECT, Diana Scholtes/HOU/ECT@ECT, Paul Mead/PDX/ECT@ECT,
Jeff Richter/HOU/ECT@ECT, Phillip Platter/HOU/ECT@ECT, Smith L
Day/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, D Brett Hunsucker/HOU/ECT@ECT,
Kim Ward/HOU/ECT@ECT, John M Forney/HOU/ECT@ECT, Edward D
Baughman/HOU/ECT@ECT, Kayne Coulter/HOU/ECT@ECT, John Kinser/HOU/ECT@ECT,
Robert Benson/Corp/Enron@Enron, Larry Valderrama/HOU/ECT@ECT, Paul J
Broderick/HOU/ECT@ECT, Edward Sacks/Corp/Enron@Enron, Janet H
Moore/HOU/ECT@ECT, Janice R Moore/HOU/ECT@ECT, Shari Stack/HOU/ECT@ECT, Kevin
M Presto/HOU/ECT@ECT, Rogers Herndon/HOU/ECT@ect, Jesse Bryson/HOU/ECT@ECT,
Stanley Cocke/PDX/ECT@ECT, Michael M Driscoll/PDX/ECT@ECT, Doug
Gilbert-Smith/Corp/Enron@ENRON, Kimberly Hundl/Corp/Enron@Enron, Joy
Werner/Corp/Enron@ENRON, Elsie Lew/HOU/ECT@ECT, Dan Houston/Corp/Enron@Enron,
Amy Horton/Corp/Enron@ENRON, Kim Durham/HOU/ECT@ECT, Rhonda
Robinson/HOU/ECT@ECT, Rudy Acevedo/HOU/ECT@ECT, Diana Allen/Corp/Enron@ENRON,
Ted Ballinger/NA/Enron@Enron, Don Baughman/HOU/ECT@ECT, Lisa
Burnett/Corp/Enron@Enron, Carla Hoffman/PDX/ECT@ECT, Mark Guzman/PDX/ECT@ECT,
Larry F Campbell/NA/Enron@Enron, Mike Carson/Corp/Enron@Enron, Alan
Chen/Corp/Enron@Enron, Jason Choate/Corp/Enron@ENRON, Lawrence
Clayton/Corp/Enron@Enron, Kevin Cline/Corp/Enron@Enron, Terri
Clynes/HOU/ECT@ECT, Keith Comeaux/Corp/Enron@Enron, Karla
Compean/HOU/ECT@ECT, Jason Crawford/Corp/Enron@Enron, Mike Curry/HOU/ECT@ECT,
Oscar Dalton/HOU/ECT@ECT, Clint Dean/Corp/Enron@Enron, Todd
DeCook/Corp/Enron@Enron, George Diaz/Corp/Enron@ENRON, Tom Dutta/HOU/ECT@ECT,
Joe Errigo/Corp/Enron@Enron, David Fairley/HOU/ECT@ECT, Miguel L
Garcia/NA/Enron@ENRON, Gerald Gilbert/HOU/ECT@ECT, Joe
Gordon/Corp/Enron@Enron, Brent Hebert/HOU/ECT@ect, Juan
Hernandez/Corp/Enron@ENRON, Wayne Herndon/Corp/Enron@ENRON, Jim
Homco/HOU/ECT@ECT, George Hopley/HOU/ECT@ect, Richard Hrabal/HOU/ECT@ect,
Rika Imai/NA/Enron@Enron, Alton Jackson/Corp/Enron@Enron, Larry
Jester/Corp/Enron@ENRON, Gary Justice/NA/Enron@Enron, MICHAEL
KELLY/ENRON@Gateway, Grace Kim/NA/Enron@Enron, Jeff King/Corp/Enron@Enron,
Madhup Kumar/Corp/Enron@ENRON, Justin Laverell/Corp/Enron@ENRON, Chris
Lenartowicz/Corp/Enron@ENRON, Peter Makkai/NA/Enron@Enron, Dave
Mangskau/Corp/Enron@ENRON, Posey Martinez/HOU/ECT@ECT, Tom
May/Corp/Enron@Enron, Keller Mayeaux/Corp/Enron@Enron, Doug
Miller/Corp/Enron@Enron, Jeffrey Miller/NA/Enron@Enron, Narsimha
Misra/NA/Enron@Enron, Steve Olinde/Corp/Enron@Enron, Andy
Pace/NA/Enron@Enron, Juan Padron/NA/Enron@Enron, Ricardo
Perez/NA/Enron@Enron, Joseph Piotrowski/NA/Enron@Enron, Joe
Quenet/NA/Enron@Enron, Bill Rust/HOU/ECT@ECT, David Ryan/Corp/Enron@ENRON,
Eric Saibi/Corp/Enron@ENRON, Zachary Sampson/NA/Enron@ENRON, Anna
Santucci/NA/Enron@Enron, Janelle Scheuer/HOU/ECT@ECT, Erik
Serio/Corp/Enron@Enron, Doug Sewell/HOU/ECT@ECT, Robert
Stalford/NA/Enron@Enron, Chad Starnes/Corp/Enron@Enron, Joe
Stepenovitch/Corp/Enron@Enron, Tom Swank/HOU/ECT@ECT, Mark
Symms/Corp/Enron@ENRON, Paul Thomas/EU/Enron@Enron, Greg
Trefz/Corp/Enron@ENRON, Maria Valdes/Corp/Enron@Enron, Joseph
Wagner/NA/Enron@Enron, Christopher Watts/NA/Enron@Enron, Lloyd
Will/HOU/ECT@ECT, Jay Wills/Corp/Enron@ENRON, George Wood/Corp/Enron@Enron,
Alex Wong/Corp/Enron@Enron, Tracy Ngo/PDX/ECT@ECT
cc:
Subject: Arizona Public Service Company

Arizona Public Service Company is moving its bulk power marketing to PINNACLE
WEST CAPITAL CORPORATION.  Credit and Legal have approved us to trade with
this entity for deals less than one year in length,


Hi everyone....I sent this to some of you already, so delete it if you
already have the goods.  I bought a house and moved this last weekend.
Thanks to Bart, Brian, Lauren, Macey, and Vic.  Your hard work was much
appreciated.  For everyone else,
my new address is: 31369 SW Chia Loop, Wilsonville, OR 97070
New phone # is: 503-682-8061

Once I am settled, I will have a house warming shindig.  I hope you are all
doing well.

Oh and to those of you who went to the coast a couple weeks ago......I had a
great time.

Thanks, Elizah


Ben,

Unit 1 Guaranteed Delivery Dates:     (Exhibit B-2 Schedule I)
 Turbine and Generator   11 March 2001
 Remaining Major Components  31 March 2001

Delivery Liquidated Damages      (Section 10.3)
 Major Component   $14,500/day  (Exhibit B-6)

Calculation of Delivery Liquidated Damages:

As of May 1, 2001, the air filter housing (defined as a Major Component) for
Unit 1 has not yet been delivered, hence the Delivery Liquidated Damage clock
has been running for 31 days.

(31 days) x ($14,500/day) = $449,500.00 towards a cap of 10% of the Purchase
Amount (10% of $39,103,201 = $3,910,320)


-----Original Message-----
From: 	Bouillion, James L.
Sent:	Thursday, June 07, 2001 10:58 AM
To:	Smith, Sarabeth; Soldano, Louis; Hawkins, Don; Foster, Chris H.
Cc:	Marye, David
Subject:	RE: Proposed Compromise to Citizens

Our liability should be limited to recoveries from the insurances required in the contract and specifically purchased for work under this contract. If covered by the policy, we will respond.  Losses, costs and expenses not recovered from the insurance, shall remain the obligation of Citizens.

Once again, if they agree to the limitation, the continued concerns would be:
1. The indemnity would be set aside by a court.
2. The indemnity from Citizens does not hold or they are financially unable to respond.

Please advise if there are further questions.

 -----Original Message-----
From: 	Smith, Sarabeth
Sent:	Wednesday, June 06, 2001 3:42 PM
To:	Soldano, Louis; Hawkins, Don; Bouillion, James L.; Foster, Chris H.
Cc:	Marye, David
Subject:	Proposed Compromise to Citizens

Please review the attached proposed compromise to be sent to Citizens following internal review.  Lou worked with Don and myself to draft this document.  Jim and Chris, your comments are appreciated.  My apologies for the short turn around time, however, we need to get back to Citizens as quickly as possible due to the plant going commercial sometime between 6/18 and 6/21.

 << File: Proposed Compromise 6-7-01.doc >>


Do you have any materials that describe SoCal's current windowing procedure?


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Please go ahead and execute.  Thanks for checking with me.

Molly Sample@EOTT
04/26/2001 10:27 AM
To: Stanley Horton/Corp/Enron@Enron
cc: Cindy Stark/Corp/Enron@Enron

Subject: Axes-One/Computron

Resending.  I apologize-it went to your EOTT address.

Molly Sample
VP & General Counsel
EOTT Energy Corp.
713-993-5027
fax 713-402-2806
----- Forwarded by Molly Sample/Houston/Eott on 04/26/01 10:35 AM -----

	Molly Sample
	04/25/01 10:33 AM

		 To: Stan  Horton
		 cc: Lawrence Clayton/Houston/Eott@Eott
		 Subject: Axes-One/Computron

As you are aware, we have been pricing an upgrade to our Computron financial
accounting program.  The vendor selected was Axes-One, which is the new name
for Computron.  To keep the project on target for implementation, we have a
quote from the vendor that is good until May 1, 2001.  This is a budgeted
expenditure and the license fees are approximately $300,000.

Dana asked that I run this by you before we get the license signed.  Please
let me know if we can go ahead and execute this agreement.  If you have any
questions, please call me.  Thanks.

Molly Sample
VP & General Counsel
EOTT Energy Corp.
713-993-5027
fax 713-402-2806


FYI only - no response required
Please advise if I'm copying you on too many "equity related" emails.
Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 12/18/2000 05:38 PM -----

	Jeff Nogid
	12/18/2000 05:32 PM

		 To: Shackleton Sara
		 cc:
		 Subject: Equity Swap Roll

Jeff Nogid
Enron Global Finance
713-853-4782
----- Forwarded by Jeff Nogid/HOU/ECT on 12/18/00 05:28 PM -----

	Christine.Lee@ubsw.com
	12/18/00 04:56 PM

		 To: jeff.nogid@enron.com
		 cc:
		 Subject: Equity Swap Roll

     Jeff,

     We rolled the equity swap today with the following terms:

     Trade Date:                December 18, 2000
     Maturity Date:             June 18, 2001
     Reset Date:                March 19, 2001
     Initial Equity:            $79.5625
     LIBOR:                     6.53625%
     Spread:                    0.90%
     Expected Div Rebate:       0.6215%
     All in Rate:               6.81475%
     # of Shares:               205,000

     Please call me if you have any questions.

     Regards,
     Christine

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

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Robin Charo
110 Vaughn Court
Madison, WI 53705
altacharo@hotmail.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,

Robin Charo


MG Ltd. is entering into FX transactions through ENA.  The companies have
also entered into financial copper trades (first trade 6/16/00).  I think RMT
and MG Ltd. should enter into an ISDA Master but I don't know the long term
plan for MG Ltd.   Please confirm.  Sara

P.S.  Have we assigned a single paralegal to handle RMT Masters?


My fax won't go through, I appear to have a bad number.  Can one of you
provide me with a new fax & phone numbe ror contact Mr. Blaquier.  Thanks!
---------------------- Forwarded by Tana Jones/HOU/ECT on 02/01/2000 11:02 AM
---------------------------

	Enron North America Corp.

	From:  Tana Jones                           02/01/2000 10:50 AM

To: Brent Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea
Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gabriela
Aguilar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject: DAPSA

FYI,

Today is the date for renewal of the Consent of Service of Process in
connection with the ISDA Master Agreement in place with the referenced
counterparty.  I have faxed Mr. Blaquier a request to provide me with
evidence of such renewal.  I will keep you apprised.


Is John there?

What do you want to do this weekend?  Should I thaw sausage for tonight?

ckm

"Neil Mann" <nmann@erac.com> on 09/15/2000 03:04:02 PM
Please respond to <nmann@erac.com>
To: "C. Kay Mann (E-mail)" <Kay.Mann@Enron.com>
cc:

Subject: offer

Sweetie,
Since you went in late today, would it help you if I picked up Michael? It
would not be a problem for me.
Love, NM


---------------------- Forwarded by Greg Whalley/HOU/ECT on 06/27/2000 02:22
PM ---------------------------

Greg Whalley <gregwhalley@yahoo.com> on 06/27/2000 02:21:28 PM
To: greg.whalley@enron.com
cc:
Subject: Fwd: EMETRA PRESS RELEASE

Note: forwarded message attached.

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File: release draft 6 logo (73,728 bytes)
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

This is our final draft for the press release. We will send it to DB shortly.
The intention is to have it released tomorrow around noon London time.

Any comments, please let us know!

Hanns Beese

(See attached file: release draft 6 logo.doc)

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 - release draft 6 logo.doc